Effective March 1, building fees and permits will increase in Oxford Village to prevent the municipality from continuing to lose money while providing these services.
Council voted 5-0 to increase them at last week’s meeting.
‘Our permit fees are significantly less than our costs,? explained village Manager Joe Young. ‘We’re losing money.?
Village permit fees ‘have never exceeded the reported costs,? according to Young, which has resulted in a net loss of more than $55,000 over the past five years.
Although this loss is ‘partly due to the fluctuating volume of construction? during the poor economic times, Young told council, ‘Overall, our (existing) rates, when you compare them to other communities, are significantly lower.?
Under the new structure, building permit fees for new construction ? including residential, commercial, industrial, additions/remodeling and accessory structures including garages ? will go from 28 cents to 45 cents per square foot. Thats a 60.7 percent increase.
Building permits for decks, porches and swimming pools will go from 24 cents to 39 cents per square foot, a 62.5 percent increase.
Building permits for commercial alterations or suite completions will go from 20 cents to 32 cents per square foot, which amounts to a 60 percent increase.
With regard to electrical, mechanical and plumbing permits, the fees will change from flat rates to rates based on square footage in an effort to make the costs more reflective of the amount of work done by inspector, according to Young.
For example, the new rates for electrical, mechanical and plumbing permits for a single family home are as follows ? $175 for up to 1,500 square feet; $195 for 1,501 to 3,000 square feet; and $215 for houses over 3,000 square feet.
These trade inspection fees are identical to what Oxford Twp. charges for permits.
‘It’s not a matter of, necessarily, what other communities are charging. That’s not our goal, I would say, to match what other communities are charging,? noted Councilman Bryan Cloutier. ‘Our goal is to cover the costs that we have here in this community.?
Village attorney Bob Davis agreed.
‘You don’t look to other communities,? he said. ‘You look to yourself.?
The law governing these types of fees is ‘very simple,? Davis explained. ‘You don’t have to conduct services at a loss.?
The village is allowed to charge what it costs to provide services, plus ‘a small percentage for administration? and a small ‘markup? for items such as postage, according to Davis.
‘If you go beyond that, it becomes an illegal taxation,? he explained. ‘So, there’s a tender balance here.?
Basically, the village has to be ready and able to justify the fees it charges.
‘If somebody challenges those costs, can we say it costs this, this and this, and therefore our fee is $100,? Davis said. ‘You have to look at it as if you’re being sued on that issue.?
‘Any service fee that a community imposes has to be rationally related to the cost it costs the community to perform that service,? he noted.
That’s why it’s important to not have fees that represent, for example, 400 to 500 percent, of the actual cost.
‘You get challenged on that, you’re going to lose because it goes from being a service fee to a tax without authorization,? Davis told council. ‘So, you have to be careful on these.?
There was some question as to whether the village should continue charging permit fees for replacing roofs, awnings and siding.
Right now, a $60 fee is charged. If it involves a roof tear-off, it increases to $80.
Young suggested nixing these permit fees.
‘Most communities do not require a building permit,? he told council. ‘We’re one of the very few communities that do that.?
Oxford Township does not require a permit for these types of replacements.
Councilwoman Maureen Helmuth argued for keeping the permits requirements in place, but not raising the fees, in order ‘to make sure (the work is) done properly.?
Prior to requiring the permit, the village ‘had people with three or four (layers of roofing) on their house,? she said. ‘When I bought my house, (it) had three roofs on it.?
?(The permit) guarantees that they’re not putting (on) excess roofing,? Helmuth noted.
Excessive weight caused by multiple layers of roofing can negatively impact the structure of a home.
Village officials chose to keep the permit requirements for replacing roofs, awnings and siding in place and at the same prices.
Fees were increased for plan reviews, demolition permits, certificates of zoning compliance/occupancy and contractor registration.
Those increases ranged from $10 to $25.
Along with increasing fees, council also voted to authorize the village manager and attorney to negotiate with the building and trades inspectors to reduce the percentage of the permit fees that’s paid to them. Officials want to lower it from 75 to 70 percent.
In a memo to council, village Manager Joe Young stated 70 percent is ‘more in-line with most other communities.?
He noted the permit fee increases should ‘offset? this reduction in the inspectors? take, so it’s not a pay cut. It could result in a pay increase, depending on how many new construction permits get pulled, Young said.