City staff told the Mill Creek Planning Commission on Nov. 26 that a proposed overhaul of development fees is intended to bring the city closer to peer rates, recover staff time and integrate with a new permitting software scheduled to go live Jan. 1.

The presenter, identified in the meeting as Staff Planner (Speaker 5), said the city’s hourly rate for planning work would rise to $175 from $100 and that plan-review charges would increase from 65% to 70% of the permit fee. "Our hourly rate is proposed to go up to $175 an hour from $100 an hour," the presenter said, adding that the changes follow a review of peer cities and are intended to make fees "simple and predictable" for contractors and homeowners.

Why it matters: Staff said many Mill Creek fees are out of date — some not updated since the 1990s — and that outdated fees shift operating costs to the general fund. The presenter said the 2024 fee revenue from 861 permits was about $300,000 and that implementing the proposed schedule could yield roughly $160,000 in additional net revenue after third-party costs. He noted that about 40% of fee revenue is paid to the city’s contractor, SafeBuilt, which provides plan review and inspection services.

Key details: The proposal includes a new credit-card convenience fee, a 10% administrative surcharge on third-party hearing-examiner or review contracts, and higher inspection rates for weekends and holidays. Over-the-counter fees for small permits would be normalized to a $175 base (for example, proposed fees of $175 for a bathroom remodel or a gas-stove permit). The presenter also said the base fee would cover up to four fixtures for mechanical or plumbing permits to reduce per-fixture charges.

Commissioners pressed staff on specifics. On temporary signs and A-boards, the presenter said individual A-boards would be $25 each while an annual real-estate sign permit would cost $100; the presenter added that the code technically requires a permit to be displayed on an A-board but enforcement has been inconsistent. Commissioners asked staff to clarify right-of-way fee thresholds and whether a minimum or a per-foot scale applies; the presenter said staff would confirm details with engineers.

Staff emphasized that the fee updates were intended to achieve cost recovery rather than to "plug budget holes" and that some categories (impact studies and impact fees, such as traffic or environmental studies) are not being changed now and may be reviewed later as part of a 2026 work plan. The presenter said the council will hold a public hearing Dec. 2 and the fees are expected to take effect Jan. 1 alongside the new software.

What’s next: City Council will consider the ordinance after the council public hearing scheduled for Dec. 2. Staff pledged to supply clarified thresholds and any additional technical details to commissioners before that meeting.