The La Plata County Board of County Commissioners voted unanimously Tuesday to approve a fee schedule increase at the Community Development Department.
At the current rate, fee revenues cover only an estimated 32% of the department’s expenditures. With the increase, which will take effect Jan. 1, application fees will cover approximately 51% of the 2024 Community Development Department’s expenditures. The remaining costs are scooped out of the county’s general fund.
The building fees have not been updated since 2008, the planning fees have remained unchanged since 2003, and there are several permit types created in the 2020 land-use code that have no defined fee structure. Community Development Department staff members floated the idea of the increase in February.
The cost of a building permit per square foot will jump from $1.40 to $2.25. The result of the update for someone building a 2,500-square-foot single-family residence will be a $2,125 increase for the building permit cost, from $3,500 to $5,625.
Planning fees will also change to better align with the actual cost of review.
A full outline of the changes is available on the county’s community development webpage.
The adopted resolution also includes a provision that will hike fees by 5% every two years.
“I was pretty astounded at the 15- to 20-year old fee schedule,” said BOCC Chairwoman Marsha Porter-Norton from the dais. “To me, that is not good governance to have fees that are so outdated.”
Commissioner Matt Salka questioned whether fees could be lowered, or remain stagnant, in the future, should the revenue they raise eclipse actual costs.
“Nothing that we’re doing would lock a future commissioner’s priorities or decisions, and if you wanted to revisit the fees at a later date, that is something you always have the prerogative to do,” Community Development Director Lynn Hyde said in response.
Just how much of the Community Development Department’s expenses should be covered by fees remains an open question. The county has a standing philosophy that development should pay its own way, Porter-Norton pointed out. However, the department does more than just facilitate development, and burdensome fees can stifle development that has widespread beneficial impacts.
Salka called for a careful accounting of the costs of each application type going forward and voiced wariness of unnecessary costs before voting for the increase.
“I have not been quiet about it … We get great examples of, ‘Well heck, it’s much easier to deal with Durango on a project,’” he said.
Only two members of the public showed up to give input.
Brad Blake, a former county commissioner, said a project underway developing affordable housing in Bayfield has been “a real eye-opener.”
“I want to caution you: just because you can raise fees to the maximum, I would urge you that it really does hurt,” he said.
County resident Tom DeHudy was alarmed to learn that his tax dollars are covering some development costs.
“I’m required to pay 100% of my property taxes, I get no relief on that,” he said. “So I don’t understand why I should subsidize developers.”
DeHudy pushed for fees to cover 100% of the department’s costs, although the BOCC has indicated that is not the county’s intention.
The resolution does allow for nonprofit entities building affordable housing to receive a fee exemption. County officials intend to circle back on an amendment that might allow for-profit entities to receive the same exemption on affordable housing projects.
rschafir@durangoherald.com
