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A higher cost of building may soon be the next fallout from Bonita Springs’ financial woes.

As the City Council tries to find room to maneuver in the smallest budget since incorporation, the members are also weighing the new building and permit fees for its newly created community development department.

The initial proposal from Bonita’s community development contractor, CH2M Hill, called for a self-sufficient department where the fees would pay for all the costs of providing the service. However, when that proposal included quadrupling the fees offered by the city’s former contractor, Lee County, the building industry sounded a strong rebuttal.

Since that initial proposal, CH2M Hill and city officials have been meeting regularly with the building industry to find some common ground, including a meeting Thursday night to specifically talk about the new fee schedule.

“By the attendance and overall attitude tonight, it appears they are working toward a solution,” Bonita Councilwoman Janet Martin said. “Tonight was promising.”

However, after all the negotiations between community development and the builders, the City Council will have the final say when it takes up the permit fee issue in late August or early September. The council can choose between a self-sufficient community development department or reducing the fees charged for permitting, building and rezoning work and in exchange pay for part of the community development department through its general fund.

In its budget workshop on Tuesday, the City Council meticulously went over its general fund and was having trouble finding money for anything above the core services, even after the members voted 5-2 to tentatively have the first tax rate increase in Bonita Springs city history.

Whether or not the general fund will have any money to reduce the proposed building fees will be a major issue when the council eventually makes its decision.

“I was trying not to have that factor into the decision,” Martin said.

Through the negotiations between the Lee Building Industry Association and CH2M Hill, some costs came down from the initial fee proposal. The high-end fees have been reduced by 40 percent, although the fee costs are still the same for a single-family residence.

“I suggest that whatever changes you may make, that you phase them in slowly rather than flash-quick,” said Diane Ledford, executive director of the Bonita Springs Housing Development Corporation.

The latest proposal from CH2M Hill still called for a self-sufficient community development department.

After nine years of working with Lee County, the Bonita Springs City Council decided to part ways for its community development so it could offer a more locally based, service-oriented department through a private contractor. CH2M Hill’s contract for this year is $100,000 less than what Bonita paid Lee County last year.

While the permit fees are a major source of contention, the creation of a Bonita-specific community department appears to have gone over well with the building industry. During a meeting a week after the new department opened June 30, the building industry praised CH2M Hill for its service, and the concerns brought up were addressed by the city contractor.

“While we’ve had some disagreement, they’ve been very cordial,” said Dennis Cantwell, president of the Lee Building Industry Association.

CH2M Hill once again reminded everyone in attendance Thursday to bring all concerns to the company’s attention.

“It is very important for me to know what you think about the services that have been provided,” said Beverly Tew, community development director.