The 84th Texas Legislature passed HB 852 and the Governor signed the legislation into law effective May 21, 2019. The legislation prohibits municipalities from
considering the values of the dwelling or the cost of construction on improving the dwelling when determining the cost of a permit. These are the dominant methods
used by cities, including Georgetown, to calculate building permit fees.

Staff evaluated existing costs and fee structures from surrounding cities. As a result, staff recommends that the current practice of value based permit fees be modified
and the city begin calculating residential building permit fees based on a cost of $0.40 per square foot, as outlined in Exhibit A.