TITLE
Consider an ordinance amending Chapter 8, Division 1, Permit Fees by replacing certain value-based building permit fees with flat rate fees and square footage-based fees.
SUMMARY
DATE: June 16, 2019
TO: Ronald L. Olson, City Manager
FROM: Dr. Ray Shanaa, Executive Director of Planning and Development
SUBJECT: Ordinance replacing certain value-based building permit fees with flat rate fees and square footage based fees
BACKGROUND AND FINDINGS:
The Texas Legislature recently passed H.B. 852 amending Texas Local Government Code Section 214.907 to prohibit the consideration of the value of a dwelling or the cost of construction or improving a dwelling in determining the amount of a building permit or inspection fee required in connection with the construction or improvement of a residential dwelling. The bill was signed by the governor on May 21, 2019, and it is effective immediately.
The City’s current permit fees associated with repair, remodel, and improvement to dwelling units are value based fees. City staff is recommending changes to convert these fees to flat fees and square footage fees to comply with the new law. Additionally, Staff shared the City’s recommended fee changes with the cities of Waco, Temple, Harker Heights and Copperas Cove as a professional courtesy.
PERMIT FEE CHANGE EXAMPLES:
New home, duplex and apartment construction permit fees are currently charged per square of the project and no change is required for these fees.
Below are sample fee comparison examples that illustrate proposed before and after illustrations to our dwelling unit permit fees from value based fees to base fee and/or unit fees. These fee changes are intended to be revenue neutral.
1. Sample general dwelling unit remodel project ($5,000 garage conversion):
a. Current fee - $54 Building Permit fee + $43 Electrical Permit fee + $35 Plan Review fee = Total $132
b. Proposed fee - $50 Building ...
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