Increased building permit fees included in proposed city budget

Apr. 29—An item in Albuquerque Mayor Tim Keller's proposed budget for fiscal year 2025 would raise building permit fees.

The proposed budget estimated that building permit revenue will increase 35.5% in the upcoming year because of the proposed rate increases. Plumbing, electrical and reroof permits are among the permits that would increase under the mayor's proposal. The proposed budget states the rates for permits haven't increased since 2009 and don't meet the city's costs.

According to a statement from the city, the proposed increase in permitting fees is to add staff to expedite plan review. The goal is to decrease plan review times, Tim Walsh, a spokesman for the city, said in an email.

The City Council is expected to consider the budget next month.

Council President Dan Lewis is opposed to the building permit fees.

"These are so-called fees that are taxes on hardworking families in our city," he said. "It's also at a time when our city doesn't need the revenue. The city has more revenue than it's ever had. And it's at a time when the Mayor's Office is bloated with more unclassified employees than we've ever had before. And the mayor wants to put this burden on hardworking families. And great cities don't tax themselves into prosperity."

Councilor Klarissa Peña, who represents District 3 and serves as budget chair, said she is waiting to meet with the council to determine the next step.

"After I'm able to sit down with the councilors and find out what their priorities are, we'll have to decide whether this is something that the council proposes worthy of moving forward or whether we need to keep the fee as is," Peña said.

She added that the first round of review by the City Council will begin with discussions.

"They'll bring forward their proposal and their justifications as to why, and then we'll have to decide at that point whether it merits the increase or not," Peña said. "And so, the body will decide, but I have heard concerns and I've also heard some support. So, we'll see what ends up happening once we hear from the administration."

Councilor Nichole Rogers, who represents District 6, said she has been reviewing the budget and has several questions out to the planning department.

Lewis said the City Council ultimately approves the budget and the budget will change.

"I think it'll change drastically over the next month or so," Lewis said. "I will specifically have amendments that amend out all increases of fees."

According to information included in the proposed budget, building permit values ended fiscal year 2023 at 14% below fiscal year 2022, with single and multifamily permits 50% and 86% below the previous year, respectively. Commercial permits ended 34% above fiscal year 2022.

Building permit revenue ended $270,000 below fiscal year 2022, according to the proposed budget.

For fiscal year 2024, building permit revenues are projected to decline 4% from the year before. That is about $150,000 above the approved budget, according to information in the proposed budget.