For the first time in 20 years, the City of Grover Beach updated a portion of the Master Fee Schedule to implement new building permit fees that reflect modern inspection services rates. Updating the current building permit fees enables the City to meet market demands and hire top tier service providers that provide the necessary oversight of construction and remodels throughout the City. 

“The City’s goal in updating the building permit fees is to provide equity in the market and modernize a 20-year-old process,” said Grover Beach Mayor Jeff Lee. “This allows us to continue providing for experienced and trusted building inspection services which accelerates project completion for residents and contractors.”

The City initially recognized the outdated building permit fees during the Master Fee Schedule update in 2021. The original fees did not cover the cost of building inspection services, which impacts the City’s ability to hire credible contractors to provide these services. To address this concern, the City contracted with ClearSource Financial Consulting (ClearSource) to conduct a User and Regulatory Fee Study to analyze the current costs of building permit related services and develop a proposed fee structure.  

ClearSource’s Fee Study indicated that the City’s current expenditures related to building permit services exceeds the revenues received by $86,000 annually, causing the City to cover these remaining costs through a General Fund subsidy. By implementing the proposed fee updates, the City would generate $86,000 and be able to execute a full cost recovery for these services.

The fee study also identified instances where some fees would decrease based on industry standards and best practices; for example, bathroom remodels would decrease by about $200 based on comparisons with other municipalities.

“By following this updated fee schedule, the City will be on track to reach its full target recovery costs,” said Grover Beach City Manager Matt Bronson. “Balancing our building permit fees revenue and the cost of inspection services will allow us to invest in other City services and programs that are important to the community.”

For a full breakdown of the updated fee schedule, visit the City’s website.