Guilford Approves Changes To How It Collects Building Fees

GUILFORD, CT — The Guilford Board of Selectmen voted unanimously earlier this month to approve a new change to its building construction fees, according to recent meeting minutes.

First Selectman Matthew Hoey told the selectmen that he was approached in 2018 by a couple of contractors who said Guilford was "missing the boat from a fees perspective."

Most of the neighboring towns and the region use a value based system rather than the ala carte fee based methodology that Guilford uses. He asked Louis Federici, Sandra Ruoff and Veronica Wallace to form a subcommittee to review and come up with recommendations, according to meeting minutes.

They have recommended the value based calculation for residential and commercial building permits. The first $1,000 of value will be a $50 fee and each additional $1,000 of value will be $12. The state fee remains the same at $.26 for every $1,000 of value.

Federici, according to meeting minutes, said he appreciates all the work the subcommittee and staff put into this process. Most neighboring towns are doing a value system. He added that the recommended pricing point is still in the lower half of what other towns are doing. This system is more equitable than the ad-hoc formula before, which had a hodge-podge of different costs and charges. This would be one formula for permits based on the value of the project.

Building Official Kimberly Norman-Rosedam gave some examples to the board of specific permits and how they would currently be calculated versus how they would be done under the new system. Under many of those areas the new system would yield an increase in building department revenue, according to meeting minutes.

Selectman Charles Havrda asked what would happen if the final price of the project differs from the price estimated when the permit fee was originally calculated. Norman-Rosedam said the applicant would then have to pay the difference in price.

Hoey said they are also approving a Value Calculation Policy, which is included in their packets and referred to in the ordinance. He added, however, that the actual full policy is not specifically outlined in the ordinance, it is being kept separate so the board can make changes when needed due to market changes.

Ruoff said when they started this study they realized Guilford’s fees were on the low and she wanted to clarify that they did not just jump to the top, but moved to a reasonable amount.

Federici said the subcommittee was charged to see which system is more commonly used and what makes sense. While the additional revenue is a positive, it was not the goal of the review.