ORDINANCE approving the creation of the Planning and Development Special Revenue Fund (“The Fund”) with zero beginning fund balance to receive revenues from development-related fees for the Planning and Development Department (The “Department”); establishing the sources and uses of the funds therein for the operation, maintenance and support of the Department’s Development related programs and functions; appropriating any and all funds received into the fund for the purposes set out herein and authorized expenditures consistent with the purpose thereof; approving the budget for the fund attached as Attachment A

This item should only be considered after approval of Item 32 above

TAGGED BY COUNCIL MEMBERS KUBOSH AND ROBINSON

This was Item 15 on Agenda of December 16, 2015

The Planning and Development Department (P&D) recommends that City Council approve the creation of a special revenue fund (SRF) for development-related services led by P&D.

Unlike many departments, P&D’s resource needs are directly tied to development activity levels. For example, applications for development-related activities increased 64% between 2010 and 2015. Fee revenue increased 214% over the same period. Despite these increases, the corresponding staff level increase during that time was only 5%. The increased workload without a corresponding increase in resources resulted in deteriorated level of service. For example, P&D’s average residential review times increased from 1.2 days in 2010 to 4.3 days in 2015, with some reviews peaking at over 15 days.

The SRF will ensure P&D provides development customers an adequate level of service, regardless of market-based fluctuations in development activity. This proposal will dedicate revenues from development-related fees administered by P&D to the SRF. In turn, P&D’s development-related expenditures will be paid out of the SRF. Fees to be dedicated toward the SRF are attached.

The SRF will fund the following development-related services:

•       Subdivision plat review

•       Permit review (Chapter 42, off-street parking, landscaping, hotel/motel, compliance enforcement, etc.)

•       One half of the minimum lot size/minimum building line program

•       The portion of management and support services associated with development activities

The SRF will also fund indirect costs associated with P&D’s development-related services. The remaining portions of P&D will continue to be funded as they are currently through the General Fund and the EGIS Revolving Fund.

The SRF should be created only with the corresponding fee adjustment. Without the adjustment, the SRF’s revenues will not sustain its projected expenditures.

The special revenue fund will take effect January 1, 2016.