The Jefferson County Council is considering a new, simpler construction fee schedule.
County Services Director Eric Larson said a lot of arithmetic is required to factor in everything that goes into calculating the county’s current building fees.
“The current fee schedule is cumbersome,” he said. “There’s a fee based on the cost of construction, plus another fee based on square footage, plus an inspection fee, plus plumbing, electrical, mechanical, a permit review. And we’re still not ready to hit the equal sign. Currently, every bathroom fixture is priced out at $3 apiece, and every electric outlet is charged $2 each. We charge for fans, lights, furnaces, water heaters. Literally, we’re throwing in the kitchen sink.”
A revised schedule, which was first proposed in early 2020 but put on hold during the pandemic, replaces all those factors with a flat fee based on construction cost.
On average, Larson said, the schedule increases fees by about 15 percent, with some fees less than the current rate, while others are higher.
“The County Code Commission (which approved the schedule before it was referred to the County Council) wanted to keep the fees for the lower end of the scale at break-even or even a tad less, and the higher-end projects average out at about 10 percent (more),” he said.
Larson said for a home that costs about $120,000, the builder would pay $1,325, which is a little less than the current rate of $1,375.
A $200,000 home would see a slight increase ($1,525, up from $1,491), and the builder of a $400,000 home would pay about 12 percent more ($1,835, up from $1,611).
“That ($1,835 fee) doesn’t even cover our increased costs. It’s just keeping up with inflation,” Larson said.
The commercial building fee schedule has been revised similarly, but Larson said it, too, calls for a single fee for simplicity.
Larson said commercial projects that cost $1.5 million would begin to see increases in fees.
He said the current fee schedule, which was approved in 2011, doesn’t reflect the market today.
“The fees are based on the cost of construction in 2008-ish,” he said. “A lot has changed with the cost of construction since then.”
Also on the rise, Larson said, is the cost of running his office.
“Since 2011, the cost of doing day-to-day business has increased by about 20 percent, including changes in pay, starting pay and health insurance premiums,” he said. “Jefferson County is growing, not like St. Charles County, and not like Wentzville, but we are growing. As we find ourselves growing, we’re finding there are more services we need to provide, and more resources are needed to provide them.”
If the number of building permits continues to grow, Larson’s office could realize $50,000 to $75,000 a year more under the new schedule, he said.
“But the real gist is that we need to create a simpler and easier way to get from Point A to Point Z than we have right now,” he said. “I’d really like to get it to go from Point A to Point C.
“If you were trying to figure out the cost of a permit, you really couldn’t.
“Just imagine the time to count the number of outlets you have; that’s not productive time for me and my staff.”
Larson said surrounding counties do not offer a single fee schedule, but most are simpler than Jefferson County’s current system.
“This (the county’s current fee system) is how it used to be done in most communities around the Midwest,” he said.
“At the time when these were drawn up, it was thought to be the most fair way of doing things. But when these systems were devised, a $150,000 home used to be closer to the top end. Now, we’re seeing a lot of homes built for a lot more than that. The math doesn’t work in today’s world.”
Larson said his survey of surrounding counties compared fees charged for a 3,200-square-foot home with two stories on public utilities priced at $290,000.
“Those are the kinds of homes we’re seeing built in the northern part of the county,” he said.
Under the new fee schedule, the builder would pay $1,695 rather than $1,551.
Larson said the new fee schedule would put Jefferson County in the middle of the region for fees charged to build that home, more than Washington and Franklin counties but lower than St. Louis and St. Charles counties.
“Even though St. Charles County charges more than $1,000 per permit, they’re still booming,” Larson said. “It’s a larger economic thing than just what the fees are. But making this easier to figure out is what’s needed for everyone concerned.”
Larson said the increased revenue generated by the new schedule might allow his office to offer online permitting, which is a feature he said home builders have been asking for.
No one spoke on the revised fee schedule at the first of three public comment periods held May 24.
The County Council conducted the second public hearing on June 14 and will likely hold the third on June 28. The council could take a preliminary vote on the new schedule on June 28 and could approve it as early as July 12.