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Council approves technology fee to fund new permitting system after narrow 8–1 vote
Summary
Loveland City Council approved a resolution creating a technology fee on building permit and plan‑check fees to cover operating costs of a new development management system. Council voted 8–1 after rejecting an amendment to exempt single‑family homeowner permits.
Loveland City Council approved a resolution to establish a technology fee on development permits to fund and operate a new development management (permitting/planning) system.
City IT and development staff presented a multi‑year implementation plan and said capital funds exist to purchase a hosted permitting platform but ongoing operating costs would be substantially higher than the current system. Staff estimated annual subscription/maintenance costs in the range of $220,000 to $270,000 and proposed a technology fee set as a percentage of building and plan‑check fees (10%) and a smaller percentage for planning‑process fees (5%) to cover ongoing operations and an additional analyst position for configuration and support.
Dan Calderon (presenter) explained the rationale: the existing system is more than a decade old, consolidates finance and permits into a single fragile service, and relies on a single analyst for maintenance. “The new system will significantly enhance our service delivery,” staff stated, while acknowledging the proposed operating fee would be charged on permits and therefore affect permit applicants.
During public comment local builders and contractors supported the change, saying the current permit system is cumbersome and that improved online permitting would save contractor and homeowner time and reduce unpermitted work. Councilors debated equity implications for small homeowner permits. Councilor Olsen proposed an amendment to exempt individual single‑family/homeowner permits; that amendment failed on roll call. Council then approved Resolution R21‑2025 by roll call, 8 yes to 1 no (Olsen voted no).
The resolution includes staff commitments to analyze fee collections annually and consider waivers for affordable‑housing projects; staff said if building/plan‑check fees are waived (for affordable housing), the technology fee would also be zero unless council decides otherwise.
Implementation steps: staff will finalize vendor contracts, begin migration and configuration, and conduct a 12–18 month implementation and training period. Data migration, fee configuration and testing are listed as major workstreams.
Authorities: resolution R21‑2025 (establishing the technology fee) and the staff presentation materials provided to council.
