AUBURN — Two city councilors are proposing a solution to a budget shortfall created in July when a majority of councilors opposed a new fee structure for building permits, parking and recreation programs.
While city administration urged councilors to adopt the new fee system to boost revenue and avoid a property tax increase, some councilors said they were concerned the new building permit fees would discourage development.
Many also questioned why the city waited to get council approval on the new fee system until after the budget, which began July 1, was approved.
After the vote, Mayor Jeff Harmon told councilors they would have to propose a fix or be faced with reopening the budget and potentially sending out new tax bills.
Councilors Leroy Walker and Ben Weisner, who voted against the fees, are proposing to cut city staff’s initial building permit fee proposal in half, from 30 cents per square foot to 15 cents per square foot, while also increasing marijuana business licensing fees by 10%.
Reached earlier this week, Walker said he and Weisner met with City Manager Phil Crowell and finance staff, and the proposal will result in “no added cost to the taxpayer.”
Walker said he’s “confident” they’ll get support from the rest of the council.
Two weeks ago, several councilors supported the new fees because of how they compare with other cities, arguing that Auburn would still be competitive with many municipalities while still appearing cheap compared to places like Portland.
Auburn’s building permit fee is a flat $25. In 2021, under former Mayor Jason Levesque, fees were drastically reduced to encourage new housing and economic activity such as building additions and accessory dwelling units. But, city administration argued that the fees often do not cover the cost of staff time.
Leading up to the council vote, an ad hoc committee tasked with reviewing the city’s fee system recommended raising fees to account for staff time required on such programs, but several councilors disagreed with how the building permit fees in particular could hurt development momentum. Councilors also appeared to be blindsided that the fee system was built into city revenue in the budget prior to getting council approval.
City administration had urged councilors to adopt the new fee system to avoid reopening the budget, also arguing that raising fees would allow the city to capture revenue in areas such as building and recreation, “allowing the city to maintain essential services without reducing public programs or staff.”
The initial building permit proposal would have increased fees to between $295 for a 900-square-foot home to $930 for a 3,000-square-foot home. Under Walker and Weisner’s proposal, the fees would increase to $165 and $480, respectively.
In Bangor, the fee for a smaller, 900-square-foot building is more than $1,400. In Portland, it’s more than $4,600.
During the previous meeting, some councilors also questioned how the item was returned to the council agenda after it had been voted down during the previous meeting.
In response, Harmon said the city attorney gave an opinion that it could reappear at the next meeting because it was considered a new “session” of council business.
Earlier this week, he told the Sun Journal that if an alternate proposal was not put forth, the initial proposal would be put up for a vote once again.
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