Billings council unanimously adopts cuts to building permit fees, citing competitiveness and streamlined reviews
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Summary
The Billings City Council voted unanimously to adopt a staff‑recommended resolution that reduces building, electrical, plumbing, mechanical and fire system permit fees roughly 23–31%, simplifies fee categories, and eliminates several review surcharges; staff say changes reduce a roughly 22‑month reserve toward a 10–12 month target.
The Billings City Council on a unanimous vote approved a resolution to lower several building permit fees after a public hearing that drew support from the local home‑building industry and a vocal resident objection.
Jessica Foust, the city’s building official, told the council the proposed resolution is the first fee revision since June 2011 and is driven by rising construction valuations and a desire to “right‑size” reserve levels. She said the city’s building division reserve is currently about 22 months and staff want to move it closer to 10–12 months. The package would reduce many fees by roughly 23–31%, simplify mechanical fees, set flat fees for fire‑system permits, eliminate revision and deferred‑submittal fees and reduce commercial plan‑review from 65% of the permit cost to 60%. Foust also said the division’s hourly rate would increase from $45 to $75.
Supporters at the public hearing praised the changes as small but meaningful steps toward affordability. “I’m always pro reducing fees,” said Kim Welsenbach of the Home Builders Association of Billings, thanking staff for their work. Dan Brooks of the Billings Chamber said the changes and process improvements will help the city “get more businesses and more housing built here in Billings.” Elizabeth Shoemaker, government affairs for the Home Builders Association and a local broker, told the council that even modest fee reductions can aid first‑time buyers.
One resident urged caution. Jeff Kettelson referenced state law and questioned whether cutting fees will deplete a necessary cushion for the city, saying that recent hospital construction had inflated permit revenue and that the community should not “chew up this money.” He cited “MCA 50‑60‑106” in arguing the city can hold certain levels of reserves.
Council members responded to public concerns during debate. Council member Shaw noted that building fees are paid by project applicants, not the general taxpayer, and said that if revenue shortages appear in future years staff will return with recommendations. Council member Espineliner praised staff for delivering a larger reduction than anticipated. City Administrator Kukalski reiterated that building‑fee revenues are restricted to building division use.
The resolution was moved by Council member Boyette and seconded by Council member Aspen Leiter and passed unanimously. The council directed staff to proceed with implementation with the city’s new permitting software and to monitor revenue impacts over the next 10–12 months.
The council’s action is effective upon adoption; staff said they would implement the new fee schedule as soon as next week with the new permitting system and revisit amounts as needed in the next budget cycle.
