Council Set to Lower Permit Fees by Eliminating City’s Share

By Dave Freneaux

    While the vote to implement a reduction in residential permit fees was deferred so the details could be worked out, the public and the Council all agreed at Tuesday's City Council meeting that residential permit fees can and should be reduced.  Two months ago, at the December 14th Council Meeting, Council Member Louis DeJohn stated:  "I don't think the City ought to get a nickel out of it.  The 10% was originally set up in case they weren't collecting enough money to cover the services without asking us to raise taxes.  After three years I think we can safely say that that money is not necessary.  So, what we are doing is we are taxing the people ourselves."  "If they (the City) have a fee structure in which the City gets taxes, I would appreciate it if we would delinieate it and get it off there."  Both the City Services Committee and the City Council are poised to do just that.

    The City Services sub-committee on Permits has done a tremendous amount of research, resulting in data which clearly indicates that residential permit fees can be reduced simply by eliminating the 15% of permit fees currently designated to be paid to the City of Central.  Pete Firmin, Chair of the Permits sub-committee, worked with his committee and other citizens to produce a computer model detailing the impact of lowering permit fees.  The data supports the concept that permit fees can be reduced if the portion designated to be paid to the City were eliminated as Councilman Dejohn requested in December.

    On Monday night the Mayor's City Services Committee, referred to by Councilman Washington as "The Dream Team", voted to recommend that permit fees be reduced.  The unanimous vote was to eliminate the City's share and have 100% of the permit fees collected be kept by the contractor providing permitting services for the City as payment for those services.

     An Ordinance was introduced by Council Member LoBue at Tuesday's Council meeting which would reduce residential permit fees on an average new home from an estimated $1,550 down to an estimated $1,141.  The Ordinance, if implemented on July 1, 2011, would result in the reduced permit fees being funded entirely by eliminating the 15% of all permit fees designated to be paid to the City.  The Council and the public all spoke in favor of this change, but the timing of the change became controversial.

    The Ordinance to reduce permit fees, if passed, would have taken effect immediately, causing the funding for the current City Services contract to be reduced for the remaining four months of the contract.  There was debate as to whether this was even allowable under the current contract.  An amendment was introduced making the effective date of the change July 1, 2011, which would coincide with the beginning of the new City Services Contract, allowing the bidders to be aware of the new permit fee structure before they bid on the contract.  Many citizens came to the podium in support of the amendment, stating that to try to reduce payment to the current contractor without negotiating the change to the contract would be unfair.  Some speakers pointed out that such a move would cause Central to be seen as a questionable business partner in the eyes of potential bidders on other contracts.  Despite the overwhelming public support expressed from the podium, the amendment to delay the permit fee change until July 1 was defeated by a 3-2 vote, with Council Members LoBue, Messina and Washington voting against the amendment.

     With the amendment defeated, the original Ordinance was to be voted on.  Again, the public spoke heavily in favor of the change, but speakers again expressed that the Ordinance should not be implemented unless the effective date were moved to July 1.  Several who spoke stated that their only concern was saving tax dollars and supported the amendment even if it were effective immediately.  Mayor Watts expressed that he would be unwilling to approve the ordinance as written unless the change were first negotiated with the current City Services contractor.  A veto of the ordinance by the Mayor could be overridden by a 4-1 vote of the Council.  Council member Aaron Moak moved to defer the agenda item and the motion passed 3-2 with Council Members DeJohn, Moak and Washington in favor and Lobue and Messina opposed.  There seems to be no obstacle to reducing permit fees effective July1, 2011.