Billings staff propose ~25% cut to many building permit fees as reserves exceed needs

City building officials told the Billings City Council they will propose a resolution next week that reduces many building-permit fees after several years of revenues exceeding division expenses.

"Our revenues produced by the current fees are outpacing the division's expenses," Building Official Jessica Foust said, noting the building division carried about a 22-month reserve and projects a goal to reduce that to roughly 10–12 months. Foust walked council through examples: under the proposed schedule a $350,000 single-family dwelling would see the building-permit portion fall by about 25%; a $2.5 million commercial project’s building and plan-review line would also drop roughly 25% in her examples. She clarified those examples do not include other departmental system-development or permit fees.

The proposal would: reduce the commercial plan-review rate from 65% to 60%; create separate flat fees for fire-system permits; eliminate revision, resubmittal and deferred-submittal fees; and set an hourly outside-scope rate of $75 (up from $45) for rare, nonstandard work. Staff said the department has already hired an additional inspector authorized last fiscal year and does not expect reduced fees to change current turnaround targets (residential first review typically five business days; new commercial first review about four weeks).

Councilors asked how the reductions account for future staffing needs and whether the reductions should be publicized to the building community; staff said they will monitor reserves each budget cycle and perform outreach if council wishes. The resolution was on the agenda for adoption the following week and would take effect after the city’s new permitting software is implemented (staff suggested March 2 as a target but noted possible delay).