The City Council on Dec. 15 approved a comprehensive update to the municipal fee schedule that overhauls building-permit pricing and sets caps aimed at balancing cost recovery with predictability for builders.

Staff said building-permit fees had not been revised in about 15 years and proposed a simplified structure: about $0.18 per square foot for new residential construction and percentage-of-value calculations for remodeling and commercial projects. During discussion staff and the city economist (Jeff) highlighted that the change better aligns the city with neighboring municipalities and more accurately recovers inspection costs, which have risen with wage and complexity.

Council debate centered on whether to add caps to limit high bills for individual builders. Planning-commission discussion had suggested a $2,500 residential cap and a $100,000 commercial cap. Supporters of the caps argued they protect homeowners and local builders from unexpectedly large fees; opponents warned that caps shift excess inspection costs back to the general fund if inspections exceed the cap. Staff acknowledged the trade-offs and recommended regular review; council adopted the ordinance with the $2,500 residential and $100,000 commercial caps and agreed to a midyear check-in.

Examples discussed: staff noted some past projects would have exceeded the residential cap under the new schedule (one example would have been charged $2,700), and a large hospital project would be affected on the commercial side. The council asked for clearer cap language and a first-quarter review of how many permits hit the caps.

What happens next: The amended fee schedule takes effect as adopted; staff will monitor permit activity and report back to council for adjustments as needed.

Vote and official action: Council moved, seconded, and approved the ordinance by roll-call vote.