SPEARFISH, SD – The Spearfish City Council Monday approved a resolution updating the current building permit and water/sewer tap fee schedules, with additions, removals, and reductions in various fee categories.
“The changes respond to community concerns regarding the affordability and consistency of fees, while ensuring the City continues to support growth in a sustainable and fiscally responsible manner,” Planning Director Kevin Koelbel said.
He explained the building permit fee schedule was updated most recently in March 2024, with the intention of aligning fees with the cost of providing permitting and inspection services, and since the update, staff has received feedback and concerns from contractors, developers, and property owners regarding the fees. In response, staff reviewed the current fee structure and considered potential reductions that still maintain adequate cost recovery and support the long-term sustainability of permitting operations.
Examples of changes to the building permit fees include:
A comprehensive utility rate study for water and sewer tap fees was completed several years ago, with annual increases implemented based on its recommendations. Staff has heard concerns regarding the affordability of these fees, and as a result, this year’s review included potential reductions to the water and sewer tap fees, while still ensuring the fees support the infrastructure demands of new development.
Examples of changes to the water/sewer tap fees include:
The table below shows the comparison, and savings, of the current fee schedule versus the proposed (adopted) fees for example single-family home building scenarios:
“We reduced building permit and tap fees to ease the financial burden on property owners and homeowners, making it more affordable to invest in our community,” Planning Director Koelbel said. “This change is about more than just cost savings; it’s a reflection of our commitment to being responsive and accessible to the public. By listening to community feedback and adjusting our policies accordingly, we hope to encourage growth, support housing development, and reinforce the City’s role as a proactive partner in shaping a vibrant, livable future for all residents.”
The resolution, available on pages 92-99 of council meeting agenda packet, was adopted Monday and will be published and effective April 25, 2025.
