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Committee backs $150-per-bedroom short-term rental permit fee and program expansion; forwards recommendation to council
Summary
Staff proposed changing the short-term-rental permit fee to $150 per bedroom, replacing the outsourced GovOS hotline with an internal 24/7 dispatcher, and adding several dedicated enforcement and finance positions; the committee voted to forward the recommended fee structure and program changes to Town Council.
Town staff presented a proposal to restructure the short-term rental (STR) permit fee and expand the program’s enforcement and customer-service capacity. Finance Director Dave Byrd said staff proposes moving from a $250 flat annual permit fee to a $150-per-bedroom fee and making investments to bring the program in-house.
Byrd said the town currently lists 7,368 STR units representing roughly 20,000 bedrooms. "So if you take the 3,000,000 divided by 20,000 bedrooms you basically get over $150 per bedroom," he said, explaining the staff calculation that supports the per-bedroom fee. Staff estimated the enhanced program’s cost at about $3,000,000 after adding capital equipment and personnel costs and incorporating a 10% overhead allocation.
Key elements of the proposal include four additional full-time-equivalent STR program positions (two senior community code-enforcement officers, a fire inspector and a 24/7 dispatcher for a town-operated rapid-response hotline), conversion of two part-time finance positions to full time, a promotion of an existing supervisor to program manager, capital investments in vehicles and handheld radios, and replacement of the GovOS outsourced hotline.
Committee members praised the clearer cost allocation and process improvements, asked technical questions about the 10% overhead and the 35% benefits loading Byrd used in salary calculations, and requested clarity on whether the new hotline staffing would affect fire-rescue operations. Members discussed equity across permit holders because the per-bedroom fee reduces costs for some small units while increasing fees for larger properties.
A motion to forward the recommended permit structure and program enhancements to Town Council with a recommendation to approve was moved and seconded; the committee approved the recommendation by voice vote. The recommendation will go to Town Council for final action, and staff said the portal is scheduled to go live April 6 with a one-year implementation period starting in May for this transition year.
