Council directs staff to propose discount to new building‑permit fee schedule after builders complain

Parowan — City staff and council spent substantial time on Jan. 8 addressing builder complaints that newly implemented building‑permit fees were substantially higher than previous charges. The city had adopted a current (2025) valuation matrix for computing permit fees; the county was still using an older matrix with lower per‑square‑foot valuations.

Staff explained the mechanics: permit fees are calculated by applying a valuation per square foot (the adopted matrix) to the expected building value, then applying graduated fees and plan‑review percentages. The county’s matrix uses an approximate $108/sq ft figure for standard stick‑built residential homes, while the Parowan 2025 matrix applies about $170/sq ft. That divergence explains most of the higher bills builders reported.

Staff presented options: peg Parowan to the county matrix; adopt an older fixed matrix; adopt the current matrix but apply an across‑the‑board discount; or do nothing. Council favored keeping the current valuation approach (to retain realistic value estimates) but applying a temporary discount to bring permit fees closer to county practice while staff monitors permit revenue volatility. A working draft discount around 28% was discussed; staff said a 32% discount would align close to the county in many typical permit cases. Council directed staff to draft a resolution with a discount scenario for the next action meeting and asked staff to propose whether the discount should be retroactive or handled via credits.

What happens next: Staff will prepare several discount scenarios (including one around 28–30%) for council to consider and bring a resolution for possible adoption. Councilors discussed how to treat permits already issued under the higher fee schedule.