The town of Porter hadn’t raised its building and permit fees for at least 30 years, but that recently changed with the looming loss of revenue from state-enacted property tax reforms.
Porter followed the neighboring Duneland community of Chesterton, which also recently raised its building and permit fee schedule.
In addition, the Porter Town Council also expects to soon approve boosting fines for nuisance and stormwater violations.
Communities across Indiana are looking for ways to raise revenue to close the financial gap created by Senate Enrolled Act 1.
When Chesterton was pondering its budget for this year, Clerk-Treasurer Courtney Udvare advised the council that it needed to consider ways to boost revenue, especially in coming years when the effects of property tax reforms take hold.
Porter’s Clerk-Treasurer Corinne Peffers said that Senate Enrolled Act 1 is “definitely going to have an impact.” However, she said it was the council’s decision alone to raise building and permit fees.
“We were overdue to look at our permit fees. It was just that time,” Peffers said.
Michael Barry, the town’s director of development and building superintendent, said that the fees will increase by about 18%. For instance, a new home costing $300,000 will now have $2,497.50 in building permit fees, up from $2,113.75.
Barry said it’s projected that the town will generate an additional $15,000 to $20,000 annually from the permit and fee increase.
Chesterton calculates building fee charges on a per-square-foot basis. So a 2,625-square-foot house will now cost $2,116.32 in fees, compared to $1,114.72 under the old fee structure. Chesterton’s new building and permit fee schedule takes effect in April.
Chesterton Town Engineer Mark O’Dell said that the town’s fees and permit charges had been significantly lower than other communities in Northwest Indiana.
Barry said that some of the biggest increases will come with the inspection fees.
Under the old structure, Porter charged a flat fee of $47. Barry said that he and the building inspector would sometimes spend hours on a property.
The new fee structure charges a $60 per hour rate, even if an inspector only spends a half-hour on the property.
Porter also borrowed from one section of Chesterton’s new building and permit ordinance, charging contractors or property owners more for failing to properly obtain a permit.
In Chesterton, a late permit will cost 50% more. In Porter, those caught for not properly getting a permit at first will pay 100% more.
Barry said he’s had to chase some roofing contractors over the years who have failed to obtain the proper permit before they began work.
The Porter Town Council on Feb. 10 is scheduled to vote on upping the penalties for nuisance and stormwater violations.
Barry said the new penalties are being enacted to coincide with the town’s passage of new rules dealing with nuisances and stormwater issues.
One of the big changes is the higher fees for repeated offenses. For instance, if someone is cited for the unsafe handling of fireworks for a second time, the fine jumps to $700 from $100.
Barry said the reason why he wanted such a high penalty is that it gives the town leverage in cases of repeat offenders.
“It’s supposed to be a deterrent more than anything else,” Barry said.
Jim Woods is a freelance reporter for the Post-Tribune.
