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City approves 1‑year intergovernmental building inspection agreement with neighboring town
Summary
Council approved a one‑year intergovernmental agreement to provide building/electrical/HVAC/plumbing inspections for a neighboring town under an 80/20 fee split (city retains 80%); staff recommended a one‑year trial with a $10,000 minimum guarantee to allow later adjustment and potential future grant eligibility.
The Fort Atkinson City Council on Dec. 16 voted to enter a one‑year intergovernmental agreement to provide building inspection services to a neighboring town, authorizing the city to issue permits and collect fees and return 20% monthly to the town.
City staff described the agreement as limited to building, electrical, HVAC and plumbing inspections; zoning and fence permits are excluded. The proposed fee arrangement retains 80% of collected permit fees for the city and forwards 20% to the town, and the contract includes a guaranteed minimum threshold: if permit revenue does not reach $10,000, the town would remit the shortfall to the city. Staff said past permit activity from the town was about 57 permits in 2024 versus more than 1,000 in Fort Atkinson, so the added workload is expected to be modest.
The 1‑year term is a trial period, staff said, to allow both parties to adjust fees or scope before committing to a multi‑year agreement. Department staff confirmed capacity to absorb the additional inspections and noted roughly half of the town’s permits are electrical work that Fort Atkinson’s electrical inspector would handle.
Council asked whether a multi‑year arrangement could make the parties eligible for state consolidation grants; staff replied a Department of Revenue innovation fund requires a minimum three‑year agreement, which informed the decision to run a one‑year pilot first. The council moved and approved the recommendation by voice vote.
Council also noted the town had approved the same contract at its recent meeting and that staff would revisit a longer agreement if the pilot proved successful.
