Building permit and inspection fees could increase by approximately 25 percent next year if county commissioners accept a recommendation from the new head of the county Construction Code office, building official Robert Meyer.

Last month, Meyer replaced Robert VanDyke as head of the Building Inspections department. In June, VanDyke was fired by county administrator David Gill.

During a special meeting of the county board on Monday, Gill explained that Meyer had inherited a departmental budget that he estimated would be around $60,000 in the red by year’s end. Gill said the department had begun the year with a $160,000 fund balance but that a sharp dropoff in building activity in Leelanau County was playing a key role in the department’s financial difficulties.

The nine-employee department is entirely self-funded by the building permit and inspection fees it collects. None of the department’s funding comes the county general fund or property taxes. In 2006, the department issued 760 building permits and collected more than $388,000 in fees from companies and individuals seeking permits for construction projects.

But, so far this year, the number of building permits issued is down 30 percent from 2006, and the total estimated construction values associated with the permits is down 46 percent from last year.

Generally, permit fees are based on the estimated construction values.

Meyer prepared a written analysis for Gill that was presented to commissioners at Monday’s meeting.

“In light of the more than 20 percent reduction in actual permits issued (by) the Construction Code Office,” Meyer wrote, “I am left with no real alternative but to raise fees or reduce staff for the 2008 Fiscal Year. In spite of this severe reduction in actual dollars collected, I must still provide the inspection services for more than five years worth of permits that are still not completed and will remain active for several more years; doing this with less staff does not seem plausible, or practical,” Meyer wrote.

To illustrate the potential impact of fees on builders, Meyer gave an example of a 2000 square-foot home with a 2-1/2-car garage, an unfinished basement and a small deck.

In Antrim County, a builder would pay $1,154 in fees to build the home. In Grand Traverse County, the builder would pay $1,310. In Benzie County, the figure would be $1,120.

But in Leelanau County, builders are currently paying $952 in permit fees to complete the same project, Meyer said.

He said a 25 percent increase would bring fees in Leelanau County more into line with fees elsewhere – to $1,285 for the project in his example.

After hearing from Meyer and Gill, the county board agreed only to put the fee issue on the agenda of their regular monthly executive committee meeting on Tuesday, Aug. 14, at 9 a.m. for further discussion. The executive committee makes recommendations to the full county board which normally takes final action on the recommendations at its regular monthly meeting the following Tuesday evening, in this case on Aug. 21.

Asked to comment on Meyer’s proposal, building contractor James Anderson of Maple City expressed concern.

“I could give better service to my customers, too, if I could raise my prices by 25 percent – but you just can’t do that in a competitive marketplace,” Anderson said. “I think the county should do like the rest of us are doing in the industry – when business is down you have to lay some people off and cut your budget.”

Anderson added: “I wonder what they’ll do if building activity picks up again. Will they lower fees then? I doubt it.”

Builder Dan Harriger of Empire also expressed concern.

“It’s a really bad time to be raising fees by 25 percent,” Harriger said. “A lot of builders don’t even have anything to bid on right now and money’s tight. If permits are down, maybe the Inspections Department won’t need all the people it has.

“I hate to say anything bad about the new guy (Meyer),” Harriger added, “but I hope he’s looking at the total picture.”