A building permit for that new home in unincorporated La Plata County will likely cost 60% more in the new year. This significant fee increase for permits as well as planning applications hurts but is necessary.
No one likes to hear about upticks in construction prices. But it’s the cost of doing business.
With building fees not updated since 2008, planning fees unchanged since 2003, and multiple permit types created in the 2020 land use code with no defined fee structure, the county’s best and most viable choice is to raise fees.
Otherwise, taxpayers will make up the difference. And we don’t want this. The community shouldn’t subsidize private development.
We don’t want money pulled from the general fund to bankroll building permits and planning applications, whether it’s dollars or staff time spent reviewing them. Growth – as expensive as it is – should pay for itself, as much as is reasonable. Not taxpayers.
As reported in The Durango Herald on Tuesday, without the proposed increase, Community Development Director Lynn Hyde said the current fees would cover only 32% of next year’s budget, and the county’s taxpayers would cover the remaining 68%.
We can’t have that.
An increase would also allow the department to recoup more, although not all, associated costs.
The current fee system is badly out of date and we’re facing sticker shock to bring it up to where it should rationally be, based on comparative pricing in nearby counties. Under the recommended proposal, a building permit per square foot would jump from $1.40 to $2.25, so a 2,500-square foot single family residence would be a $2,125 increase for the building permit, from $3,500 to $5,625.
Planning fees aren’t as straightforward. An administrative permit for an accessory dwelling unit or a boundary adjustment would go from $160 to $250. A minor land use permit, needed to build smaller commercial and industrial projects or multifamily dwellings, would increase dramatically, from $190 to $1,250.
That stings. But it’s inevitable.
Thoughtful development and growth is important, and we’re well aware of how the county’s minimal housing inventory affects our local economy in a myriad of ways. More homes are needed.
In contrast, the fee increases isn’t as hard-hitting as concrete or lumber or labor or other construction expenses. Builders and developers can more easily bear higher-priced permits and applications.
As plain as this choice is to increase permit and application fees, we’re cautious and not ready to make the leap with the proposal that would bump up fees by 5% every two years to keep pace with rising costs. Let’s wait on this one.
Again, we return to keeping hands off the general fund, please. Our priority. It’s already lean.
The Board of County Commissioners will hear public comment on the proposal before taking formal action. This item will likely be on the Dec. 12 Business Meeting Agenda. Make your preferences known.
