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Board approves 2026 building code contracts while directing study of true costs
Summary
After a commissioner objected that county building inspection contracts are costing taxpayers roughly $200,000–$250,000, the board approved the 2026 annual building code contracts but asked staff to provide a follow-up cost study and hold a workshop on program costs and fee structure.
The Goodhue County Board voted Dec. 16 to approve its annual building code contracts for 2026 but asked staff to provide a more detailed analysis of what the county actually spends to provide inspection and plan‑review services.
An unidentified commissioner (S7) said the county is ‘‘at, I believe, $200,000 to $250,000 of a loss’’ on the program and said he would not support the contract unless commissioners can make changes before future renewals. ‘‘I have absolutely no idea why we continue to do that or why you guys continue to support that,’’ the commissioner said.
County staff member Megan (S8) told the board that, year to date, the county has collected about $151,000 in city contract revenues and $185,000 from township work, for a total of roughly $343,000 in related revenues, but that does not fully offset the building department’s costs. Megan also said the plan‑review fee (a percentage of valuation) was increased this year from about 45% to 65% of permit valuation, which will slightly raise revenue.
Commissioners debated whether cities that contract with the county should bear more of the inspection costs, whether townships should be treated differently, and whether permit fees should be indexed more frequently to keep pace with rising costs. Several commissioners emphasized the risk of setting fees so high that contractors skip permits, which could increase downstream safety and insurance problems.
A motion to approve the contracts for the coming year while directing staff to return with a detailed cost study and to place the issue on a workshop agenda passed by voice vote.
The board’s next step is a staff workshop and a follow‑up report that county leaders said will attempt to estimate ‘‘true program costs’’ and present options for fee schedules or cost recovery.
Funding and next steps: staff said they can present initial ballpark estimates and invite building‑department staff to the workshop; no change to the 2026 contracts was made at the meeting.
