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BOOK 89 Farr x:38 -7 Currently, the building division assesses building permit fees based upon the value of construction. These fees increase as the value of construction increases. A plan exam fee, consisting of 50 percent of the permit fee, is- also charged. The current fee amounts are shown in the attached fee schedule. In analyzing fees charged by other jurisdictions, staff found that fees varied among local governments in the area. One fee schedule, however, seems to be gaining popularity among jurisdictions. That is the standard fee schedule developed by the Southern Building Code Congress (SBCCI). Staff analyzed the effect of adopting the SBCCI schedule. According to projections, building permit revenue would increase by $261,140 per year based upon FY 91-92 permit volume, if the SBCCI fee schedule were adopted. Together with the miscellaneous/sub- permit and competency card revenue, building division revenue would be $971,081 annually, assuming FY 91-92 permit volume. If approved, this alternative would provide the building division with sufficient revenue to cover expenses. The cost of this alternative to builders, however, would be substantial. For a house with an estimated value of $72,536, the permitting cost with this alternative would be $736.65, compared to $386.15 at present. One variation of this alternative is to raise fees as indicated above, but offer a "package plan" for single-family residential. Such a package plan would incorporate the sub -permits with the overall building permit for a single-family house. There would be no separate charge for sub -permits with this option. For a single- family house having a value of $72,536, the package plan permitting cost would be $528.00. • Competency Card Renewal Fee & Staff Cut This alternative involves implementing the annual competency card renewal fee requirement also proposed in the other options. Unlike the other alternatives, however, this option would not involve fee increases; instead, it would involve staff cuts. Since the competency card renewal fee would increase revenues only by about $45,000 per year, there would still be a substantial deficit. Making up that shortfall by cutting staff would require that six or seven of the sixteen positions in the building division be eliminated. Such an action would make it impossible for the building division to fulfill its mission. With staff cuts of that magnitude, plan review would not be timely, and inspections would not be adequate. • Convert Building Division to General Fund Status This alternative consists of changing the building division's funding source. As an enterprise account, the building division not only must operate on the revenues that it receives, but it also must pay rent and pay G & A charges. Generally, the building industry has supported the enterprise account structure for the building division. One reason for the industry's support of the enterprise account was that the building division over time accumulated a substantial reserve. With an enterprise fund In place, builders could be certain that their fees were not being used to subsidize other government functions. In fact, builder groups statewide have taken legal action to force local governments to segregate building permit revenues. 42