REPORT TO COUNCIL
SUBJECT
Title
Action on Addition of Three Community Development Department Positions Funded by Building Division Permit Fees and Related Budget Amendment
Report
COUNCIL PILLARS
Deliver and Enhance High Quality Efficient Services and Infrastructure; Manage Strategically Our Workforce Capacity and Resources
BACKGROUND
The City's Community Development Department Building Division operates as a cost recovery fee funded program with permit fees covering 100% of service delivery costs. Permit activity and accompanying revenue have both grown steadily over the past ten years. The Building Division's budget is appropriated in its own Building Development Services Fund. The fund maintains a positive balance in order to support the delivery of services that may continue for one to three years after the collection of permit fees. This also provides some buffer to mitigate fluctuations in economic and building industry activity. The Building Division budget includes projected revenue and costs for each fiscal year including anticipated surpluses to contribute to the reserves. While the Building Division experienced a slight drop in activity in the early months of the COVID pandemic (March-May 2020), the Building Division completed FY 2020/21 with revenue greater than projected in the Division's budget. Similarly, FY 2021/22 was completed with revenue nearly 50% greater than projected, further contributing to the growth of the Building Division fund balance. As of September 30, 2022, revenues have tracked higher than budget at approximately 35% collected.
DISCUSSION
The Building Division (Division) continues to operate at historically high levels of permit activity, which have steadily increased over the last ten years. As activity levels grow, it is necessary to gradually add staff in order to maintain a proper balance between demand for services and the City's ability to respond to that demand. The Division revenue is affected by economic cycles an...
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