Businesses looking to construct new buildings in DeKalb could face higher building and planning fees if the city council passes an ordinance intended to bring the Community Development Department out of the red.

The council passed the consideration unanimously Monday night. The proposal will come back for its first reading as an ordinance at the next council meeting.

Community Development Director Paul Rasmussen said this is the first time the fees have been looked at since 1992. Since then, staffing costs for inspections and services provided by the department have increased dramatically, causing funding for the department from fees to drop to 70 percent, he said.

Rasmussen hopes to see the new proposal increase the funding to anywhere between 90 and 95 percent.

Initially, the department hoped to increase the flat rates by 3 percent. When the staff approached the DeKalb Building and Development Association, the group recommended a connection between the fee prices and the city’s Consumer Price Index. The fees also are tied to the square footage of a business, rather than a simple flat rate.

Under the proposed system, a typical commercial building of about 20,000 square feet would have an increase in fees amounting to about $4,000. Under the old system, the fees would amount to $9,516, but under the new system that would be increased to $13,835.

Although the council appeared pleased with the proposal, a concern was raised about the linkage to the CPI.

“My concern with this proposal has to do with the use of the CPI as a barometer to cover costs,” 2nd ward Ald. Kris Povlsen said. “I don’t think we’ll catch up using the CPI.”

Rasmussen answered, saying his staff conducted a lot of research on the fees and various possible systems and came to an agreement with the DBDA to use this system.

“Many people say they would like to see government run as though it were a business,” Rasmussen said. “This is an attempt to balance our department’s costs with its income.”

Rasmussen said he doesn’t really expect to see the department reach 100 percent, but believes this plan will bring it closer to a balanced budget.

He added the department staff spent more than four months creating the plan, and studied similar fees in nearby communities like Aurora, Genoa, St. Charles and Sycamore.

The proposal also includes a clause making the council reevaluate the plan in five years to assess its success and possibly make changes if needed.

Two other portions of the proposal call for the application process to obtain a building permit to be streamlined from 10 forms to a single form and a waiver of building fees for new construction on abandoned single family residences.