Lebanon commission debates how impact and permit fees affect housing and development

The commission discussed whether Lebanon's impact fees and building permit fees should be recalibrated to support targeted development goals. Commissioners noted that current impact fees are derived from a Basis of Assessment report and that the city can set permit fees; one member proposed tying permit fees to square footage rather than construction cost to limit volatility as construction prices rise.

Staff cautioned that lowering fees reduces non‑property tax revenue streams that pay for capital investments (schools, police, fire, recreation) and that impact fee monies have statutory limits — if fees are not used for their intended purpose within six years they must be returned to payors. Commissioners suggested doing a comparative review with nearby communities to ensure competitiveness and fairness before making structural changes.

No policy change was adopted; commissioners asked staff to compile fee revenue history, sector contributions and comparative data from neighboring towns to inform a future decision.