Universal City advances cost-based changes to building permit fee schedule

Development staff presented an update to the building permit fee schedule (last adopted in 2019), explaining two state laws that guided the work — HB 852 (2019), which prevents residential permits from being based on home value or project cost, and HB 1922 (2023), which requires fee schedules be readopted at least every 10 years.

Staff said their approach was to calculate a direct staffing cost ($72.57 per hour), add a 10% indirect-cost factor, and apply a static fee component (about $50.22) to each permit. The presenter described grouping permits and moving from 8 fee classifications to 11, while aiming to keep the schedule as revenue-neutral as possible. "We are proposing to reduce the permit fee for this type of permit," the presenter said when explaining changes to single-family home permit charges after recalculating staff time and true cost.

Staff compared Universal City's proposed fees with neighboring jurisdictions (Live Oak, Converse, Schertz) and said Universal City remains comparable or below those cities for many commercial permit categories. The presentation included examples: staff proposed reducing the fee on a Chipotle-type commercial finish-out from $5,000 to $3,500 while noting other cities charge substantially more for similar permits.

Council opened and closed the public hearing with no public speakers and moved the ordinance (Ordinance 361AJ2026) forward on first reading. Staff said the fee schedule update is intended to reflect staff time and indirect costs while maintaining a predictable and justifiable fee structure for applicants.