When Illinois entered a stay-at-home order at the start of the pandemic, local governments needed to continue delivering basic services, including the review and approval of building permits. In fact, some local officials saw a surge in residential building permits, as residents rushed to remodel bathrooms, repair driveways, and complete other home improvement projects while stuck at home.

But not every community was equally equipped to maintain operations during COVID-19. Just as some private businesses already had the infrastructure in place to transition their employees to remote work, some municipalities in the region — from Crystal Lake to Elk Grove Village and Oak Park — leveraged existing online systems to process permits and accept payments. Others, meanwhile, improvised with makeshift drop boxes and follow-up phone calls to process credit card payments.

ON TO 2050, the region’s long-range plan, urges communities to leverage technological improvements to increase efficiency, service quality, and transparency. The pandemic and its challenges have clearly demonstrated the ways technological improvements, such as online permitting, can help local governments maintain efficient services even in times of crisis.

Here are the key benefits — and challenges — of implementing online permitting.

Online submission systems are more efficient. They allow residents to submit at their convenience, municipalities to gather permits in a searchable database, and staff to reduce data processing and unscheduled phone calls and walk-ins.

Such efficiencies will be essential as communities contend with tightening budgets. With a decrease in local sales tax revenues due to the COVID-19 recession, municipalities will face significant fiscal challenges. Staff are being asked to do more with less. Reducing time spent at the public counter or directly processing permits will free up resources to address other municipal business.

Crystal Lake, for example, has seen increased efficiencies since the city launched an online permitting system in 2019. “Developers, residents, and staff are happy with the system, as it makes the process smoother and more streamlined,” said Katie Cowlin, assistant city planner for Crystal Lake. Most permits are now submitted online, and paperwork has been significantly reduced. This spring, the benefits of the online system became even more apparent: Staff were able to continue reviewing permits while working remotely during the stay-at-home order.

Online systems also offer advantages beyond efficiency. For example, they can increase transparency in government, by giving residents access to basic information on projects or permits through an online portal. They also provide built-in performance measures, such as tracking the time between different steps of the permit review process, allowing staff to make measurable improvements year over year. Online systems even offer communities an environmental advantage, by reducing the amount of vehicle trips to the office.

While efficiency sounds great, implementing online systems has upfront fiscal and time costs. For a municipality starting from scratch, the initial investment for online permitting systems is significant. The implementation process generally takes between four and six months, and costs from private vendors vary greatly, from $15,000 to near six figures. 

For local governments with a hybrid process, moving to a fully online system may be a valuable upgrade. Some communities have an online system for tracking permits but no corresponding software for permit submission. Permits are still submitted offline, and staff perform the necessary data entry. Most permit tracking software offers companion tools for permit submissions that are relatively inexpensive at typically 5 to 10 percent of the previous contract costs, according to a municipal IT director in Morton Grove.

To save money while improving services, municipalities and councils of governments should explore a service-sharing partnership. For example, South Suburban Mayors and Managers Association (SSMMA) offers a GIS Consortium for members. Such partnerships can serve as an example of how to successfully implement online permitting in a shared way.

The immediate challenge would be managing different building permit processes and regulations from community to community. For example, some municipalities require no permits for patios, while others mandate a certified engineer review. The state of Wisconsin solved these issues when it moved to a statewide online permit system in 2015.

While we encourage communities to leverage technological upgrades, some simply cannot make this investment. Municipalities that can afford software infrastructure will be able to increase efficiency and attract development through their “business-friendly” systems. This technology divide will exacerbate inequities in the region. With inclusive growth as a key principle of ON TO 2050, we must ensure that all communities are able to benefit from better digital infrastructure across northeastern Illinois.