Finance Director Shari’ Garrett told the City Council during a March 17 work session that a full cost-recovery analysis shows the city is not recovering the true cost of building inspection services and that the current $47 permit fee has not changed in more than 24 years.
"We are not receiving full cost recovery on this service," Garrett said, adding that the proposed schedule reflects direct costs and that indirect costs were not included in the initial changes. She said the city policy is to tie fees to the service recipient rather than using taxes to subsidize fee-based services.
Building Official Tyler Seaman described the practical effect of the current fee structure, explaining that simple "over-the-counter" permits — for example, water heaters, new electrical service and re-roofs — are performed by the same inspectors who handle new construction. Seaman warned that homeowners who perform work themselves often require more inspector time because they may not be familiar with code requirements.
Council members debated how to structure any increases. Council Member Zunayid Z. Zishan asked whether property taxes already cover employee wages and whether neighboring cities were surveyed; Garrett replied that staff followed city financial policy and that full cost recovery provides a direct link between service and payment. Council Member Jeff West suggested removing a proposed $55 reinspection fee from the base permit, and Seaman said reinspections occur roughly 10 percent of the time and should be charged for no-shows or for work that requires a second inspection.
Council Member Cheryl Parkinson proposed a base permit with additional, clearly identified extra fees where applicable. Garrett said staff could build the $55 reinspect charge into permits that require multiple inspections so residents would know up front when a permit covers more than one inspection.
Following discussion, Garrett and Seaman were directed to revise fee calculations and return with a recommended fee schedule for council consideration.
The council did not take a formal vote on fee amounts during the March 17 meeting; the next step is for staff to present a refined proposal.