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Madison council adopts Ordinance 2026-10C to update permit and zoning fees
Summary
On May 19 the Madison common council adopted Ordinance 2026-10C, revising building, subdivision and zoning fees to comply with recent state law changes; the measure passed on second reading by roll call and includes new requirements for audits, a non-reverting fee fund and limits on how often fees may be updated.
The Madison common council voted to adopt Ordinance 2026-10C on second reading, updating fees across the city’s building, subdivision and zoning regulations to reflect recent state requirements and the city’s cost-recovery calculations.
A staff presentation and consultant review preceded the vote. Amy Williams, a consultant working with the city, told the council the state’s changes require an audit of the municipality’s fee-calculation methodology by year-end and a July 1 effective date for the new law. "This new law does go into effect July 1st," Williams said, and she explained the bill also changes the waiting period for fee effectiveness from 90 days to 180 days and restricts fee updates to once every five years.
The ordinance amends sections 150.24 (building regulations), 153 (subdivision regulations) and 155 11.60 (zoning). Williams and city staff described how the proposed fee schedule was developed from a time-and-cost methodology (staff hours, recording fees, legal-ad placement and meeting staffing) and by benchmarking against neighboring jurisdictions. Staff said plan commission review was unanimous and recommended passage.
Key provisions flagged in the council discussion include: a required audit of fee methodology by the end of the calendar year; placement of fee revenue in a non‑reverting fund to avoid general-fund subsidy of permit work; a statutory allowance for applicants to obtain external permit review if the city fails to issue certain permits within the statutory timeframe; and limits on short-term rental fees under state statute. Williams identified example fee changes discussed at the plan commission: variance and special-exception fees for rural/residential properties were reduced in the proposed schedule (noted in the packet as $200) while commercial/industrial district variance fees were increased (noted as $400) to better align with processing costs.
Council members asked whether applicants could seek outside inspectors if permits were delayed; staff said the law permits an applicant to apply locally first and, if the city defaults on meeting statutory turnaround times, to obtain an independent inspector. Staff also told the council the ordinance language sets a 90-day effective date after adoption for this instance, with council discussion noting the implementation timeline would put effectiveness in August (the council referenced Aug. 19 as 90 days from the meeting date if the ordinance is adopted that night).
On the motion to adopt Ordinance 2026-10C on second reading the council took a roll-call vote. Recorded votes were yes from Patrick Tanel, Carla Kred, Lucy Dillo, Joel Storm, Jim Bartlett and Josh Wilber; Josh Schaefer was absent. The ordinance passed on second reading.
Next steps described at the meeting included preparing the required audit documentation (staff indicated it will be submitted well before Dec. 31) and placing adopted fee revenues in the designated non‑reverting fund for permit-related costs.
