Although city officials have stalled an increase since July, a 61 percent rise may be on the horizon for all building permits issued in Carson City.
Carson City supervisors will consider Thursday a proposal to end taxpayer subsidy of the city's building permit program, said Phil Herrington, chief building official.
Supervisors were supposed to decide on the increase in July, but Herrington said he decided to take a little extra time to make sure there was plenty of support for the increase.
The permit program brings in about $800,000 a year, but it takes about $1.3 million to operate the program, Herrington said.
"What's happened is Jon Q. Citizen is subsidizing that process. That shouldn't happen," he said.
Herrington said with approval, a building permit fee for a $100,000 home would go from $1,007 to $1,640. A $197,000 home in Silver Oak, for example, would see a permit fee increase of nearly $1,000, from $1,570 up to $2,557.
Now, plans come to the building department, and the fee charged basically covers the cost of the building department viewing the plans, even though it goes to the fire department and several other departments for review. The fee doesn't pay for the time from other departments.
Herrington is proposing the city create an enterprise fund. Fees generated from permits would go back into a specific fund to make the building permit program self-sufficient.
With the money generated by a fee increase, Herrington said, the building department would hire an additional five people as well as increase the days the one-stop shop permit program is open from three days a week to five.
The move is supported by local builders.
Tom Metcalf, president of the Builders Association of Western Nevada, said in July the builders group is looking for a more focused service for the building community. He said if builders pay more, they'll expect a higher level of service.
"It costs more if your project drags out for a long time," Metcalf said. "For every day we get a permit earlier, it is a day of less of costs."
Metcalf said the builders support the proposal if they have some ability to monitor the enterprise fund and permit process. That basically means extending the city's current one-stop shop oversight committee to make sure the builders play a bigger part in the process.
"Information in equals information out," Metcalf said. "We need to be part of the process to see what we need to do better."
Other plans included in the proposal include a provision to charge developers 75 percent less for a permit review on plans that will be used to build more than one home. It costs $400 to review a set of plans for each house now, but would be lowered to $100 with the proposal. Herrington said the developers' savings should be passed on to the home buyer.
The building, community development and engineering departments will also be further integrated into one office to cut down on the time it takes to take plans from one office to another. Also, the city's express plan check for large commercial projects such as Costco would be expanded.
- If you go:
What: Carson City Board of Supervisors meeting
When: Thursday, 1:30 p.m.
Where: Community Center's Sierra Room, 851 E. William St.
Building permit fees would increase by the following amounts with a proposed 61 percent fee hike:
- Price of home Current fee Proposed fee
$74,000 $825 $1,343
$100,000 $1,007 $1,640
$125,000 $1,151 $1,875
$197,000 $1,570 $2,557