- October 29, 2024
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The revenue coming in to Palm Coast's building permitting department has consistently surpassed expenses in recent years — a trend that led the City Council on July 7 to vote unanimously to temporarily eliminate the city's building permitting fees in order to use up the surplus money. The decision takes effect immediately.
"Some for the benefits from the action include reduced cost to homeowners making repairs, an economic incentive for construction-based industries to keep building going, and to come into compliance with state law."
— JASON DeLORENZO, Palm Coast chief development officer
The measure helps keep the city in line with state law, which restricts how the money can be used and allows cities to carry a surplus forward only so long as the amount does not exceed the average of its operating budget for that division for the previous four fiscal years.
The Building Division's average operating budget for the last four years is $2,477,528, according to a city staff document.
The fees will kick in again after the city works the fund down to $2.4 million and issues a 60-day notice to residents and developers that the fees will resume, Chief Development Officer Jason DeLorenzo said during the July 7 City Council meeting.
"Some for the benefits from the action include reduced cost to homeowners making repairs, an economic incentive for construction-based industries to keep building going, and to come into compliance with state law," DeLorenzo said of the proposed 100% fee reduction.
"This provides, I believe, a nice result," Mayor Milissa Holland said. "I am in favor of the approach. ... When we presented at the Home Builders Association annual meeting, they were very receptive of this opportunity, and they favored the approach as well."
Flagler Home Builders Association Executive Officer Annamaria Abad spoke during the meeting's public comment period and said that the FHBA is in favor of the fee eduction, but that the association had also spoken with the city previously about some other potential uses of the money — some of which, like virtual inspections, have since been implemented as a result of COVID-19 — and that the association hopes those ideas will still be looked at, as well.
"Just some things to consider, going forward," she said. "But we do absolutely thank you for this proposed reduction in permitting fees and ask that you look at the additional options that were spoken about before."
The city also hopes to hire more staff for the building division: It currently has 18 full-time staff members. It had 35 in 2005, then dropped to 15 during the recession. The city is now budgeted for 22 positions, DeLorenzo said, but has had trouble filling four positions. It's currently seeking three building inspectors and one plans examiner.
The city also hopes to increase cross-training so that staff members are able to perform more services.
"Hopefully this will not only expedite the permitting process, but allow the experience to be much better overall," Holland said.
Councilman Bob Cuff said a few builders had approached him and asked why the city wasn't using some of the surplus permitting money to to hire staff or make the processes of the building department more efficient.
City Manager Matt Morton said the the excess revenue belongs to the building community.
"This is their excess funds they paid in good faith for service," Morton said. "So we programmed in conversations with the building community those dollars for … continued technology enhancements and cross training, and we did that at a level we felt was reasonable and fair to our building community partners."
