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The cost of building and home renovations in Los Gatos just got a little pricier. Starting next month, the Los Gatos Community Development Department will begin charging residents increased fees for planning and building services.
The move comes as the town is looking for ways to curb its expenditures and generate new sources of revenue.
But the increased costs are not simply the result of a sluggish economy. Officials say the hikes are also needed to close the gap between how much time and effort the town spends on building projects and how much it is compensated in return.
"Los Gatos provides an extremely high level of customer service," said Community Development Director Bud Lortz. "The planning department is extremely involved, the community provides input throughout that project and we take that involvement very seriously."
The planning department currently receives $700,000 from the town as a subsidy to cover its costs and expenditures. The new fees are expected to generate approximately the same amount, making the department self-sufficient, and achieve total cost recovery.
The changes will encompass a broad spectrum of building and planning processes. Los Gatos currently uses valuation standards suggested by the International Conference of Building Officials, with costs of a single family dwelling set at $107.18 per square foot. After the increase, this permit will jump to $214.37 per square foot, making Los Gatos one of the more expensive places to build in Santa Clara County.
Other cities in the area with comparable pricing schemes include Capitola and Atherton. Valuation of a single family dwelling in Atherton runs about $250 per square foot.
Officials defended the spike in prices, saying that their approach to planning and development is more involved than in other cities and that the new costs reflect that time and effort.
"It is involved, it is expensive, but the community certainly gets the benefit of that inspection," Lortz said.
A re-roof project in Los Gatos generally takes four inspections on the property versus only one in San Jose. The building fee permit in San Jose is $68 per square foot, although additional administrative fees often augment this price tag.
Individuals with financial considerations, particularly senior citizens on fixed incomes, may be eligible for assistance to defray these new costs.
The town council will review the new pricing scheme again next year.
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