Board of Business and Neighborhood Services approves updated permit fees; changes take effect Jan. 1, 2026

The Board of Business Neighborhood Services adopted Resolution 2025C10023 on Aug. 28, approving changes to permit fees and penalties to help stabilize the department’s finances. The board approved the resolution as amended; the changes are set to take effect Jan. 1, 2026.

The fee updates stem from a 2024 Baker Tilly rate-and-fee analysis and department staff testimony that many fees had not been updated in decades. Director Abby Brands and budget staff said the department is collecting “2010 revenue” while paying 2025 operating costs, and the adjustments are intended to better align permit and inspection charges with staff time and expenses.

Board members voted to amend the original proposal before the final vote. The amendment removed a proposed commercial plan-review accelerated fee from the ordinance and added a revised schedule for accelerated commercial inspections. Under the amended language presented to the board, the first two hours of a commercial accelerated inspection are covered by a base charge; additional time would be billed at hourly rates listed in the amendment: $250 per hour for same-day service and $150 per hour for next-day scheduled service. The transcript records an additional after-hours/weekend rate as “$2.50 per hour”; the record did not clarify whether that figure is a transcription or typographical error.

Staff said the changes are organized in three groups: Group 1 (zoning violations) will go to city-county council; Group 2 (right-of-way, encroachment, drainage, unsafe-building administrative fees and similar items) may be regulated by the board without ordinance changes; and Group 3 contains fees that the board can set but that also must be codified in ordinance and will therefore return to council. The board-approved fee schedule will be reflected in BNS’s fee schedule beginning Jan. 1, 2026 and certain items will still require council codification.

The department’s presentation also included budget context. Budget staff said the proposed operating budget for 2026 holds expenses flat while revenues are expected to rise only as fee updates are realized. The department reported a modest net decrease in some character 1 and character 3 budget lines driven by internal chargeback changes, while noting a planned use of updated fee revenue for staffing, technology and third-party contract management if revenue exceeds budgeted levels.

During the required public hearing, a single speaker identified as Jean urged the board to reject or reduce the increases, arguing they would disproportionately affect lower-income residents and criticizing enforcement practices. Board members said a communications plan will accompany the changes to notify residents and stakeholders before the Jan. 1 effective date.

The resolution as amended was approved by voice vote; the board recorded unanimous “aye” vocal responses and did not take a roll-call tally during the meeting. Staff and board members said some items still must be taken to city-county council for final codification.

The board discussed several programmatic details that will be affected by the fee changes: a proposed reinspection fee to deter repeat inspection visits, new charges tied to drainage plan review and follow-up inspections, separate, lower-tier fees for remodels and tenant finishes to reduce burdens on small businesses, and a plan to remove certain notification-only permits from the process where staff concluded the administrative step provided little public benefit.

Board members and staff emphasized outreach and a phased timeline to implement the changes and said they will return to the board later in the year to finalize remaining details, including commercial plan-review items tied to third-party reviewer contracts.