7 | Audit of Building Permit Fees December 2024 1. Permit fee reductions beyond authorized periods Observation Permit fee reductions are sometimes implemented through County Resolutions to assist in economic recovery for reasons such as the COVID-19 pandemic. While these reductions are intended for specific time periods, the Accela Civic Program currently applies reduced fees based on the application date, even if payments are made after the fee reduction period specified in the County Resolution has passed. This results in non-compliance with County Resolutions and loss of revenue. County Resolution 2023-061 was passed on March 21, 2023, which temporarily reduced certain building permit fees and reinspection fees by twenty-five (25) percent. The County Resolution took effect on April 1, 2023, and had a sunset date of March 31, 2024, whereby beginning April 1, 2024, all permit fees will revert to their prior full rate. The auditor selected a stratified sample of one hundred and sixteen permits (116) out of a population of thirty-one thousand four hundred fifty-seven (31,457) permits that were issued during the audit period of October 1, 2023, through May 31, 2024. During the review of the one hundred and sixteen permits (116), observations included forty-eight (48) permits that were charged reduced fees by twenty-five (25) percent after the sunset date of March 31, 2024, listed in County Resolution 2023-061. Due to the Accela Civic Program applying reduced fees after the sunset date of March 31, 2024, a total of thirty-one thousand three hundred-thirteen dollars and sixty-seven cents ($31,313.67) was observed as lost revenue within the audit sample, suggesting the actual impact across all reduced fees after the sunset date may be substantial. Recommendation After conversations with management, it was determined that while Chapter 70, County Code of Ordinances, specifies the application date as the basis for impact fee changes, it does not address permit fee changes, which fall under Chapter 22, County Code of Ordinances. However, aligning the methodology for all fee types makes practical sense. Planning and Development Services should ensure that future resolutions clearly specify whether any fee changes are based on the submission or payment date. Management Response Planning and Development Services has consistently through the years had a past practice of applying the methodology of using the application date for a permit for any fee increases or reductions. This is primarily due the permit intake date is a specific point that can be effectively tracked. In contrast, the processing, review and approval of a permit is an unknown time for an applicant. This methodology is consistent with Chapter 70, County Code of Ordinances, relating to the various Impact Fees, which state permit applications submitted and accepted by the County prior to or on or after a specified date are subject to certain rates. Planning and Development Services will include in future fee resolutions specific language as to when an application qualifies for a fee change based on submission date.
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