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HomeMy WebLinkAboutPlanning 4th Quarter Fiscal Year 2009 Update Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Andy Epple, Director of Planning and Community Development Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: Planning Department 4th Quarter FY09 (April 1, 2009 – June 30, 2009) Budget Update MEETING DATE: August 3, 2009 AGENDA ITEM TYPE: Action Item RECOMMENDATION: Move forward with current Planning Department staff levels, noting the continued reduction of 1.5 FTEs from the FY09 Adopted Budget. BACKGROUND: Because of the anticipated difficulty estimating Planning Fee revenues and workloads (planning applications) in FY09, we committed to make quarterly decisions regarding staffing levels and operating costs in the department. The FY09 Budget was balanced with the following assumptions: 1. Monthly Planning Fee Revenues of $20,000 minimum. This estimate was based on the average revenue from fees for the months of April – June 2008. First Quarter Actual Revenues averaged $22,800 per month, exceeding the minimum required revenues for the quarter by $8,400 (see First Quarter Report, previously reviewed at October 27, 2008 Commission meeting). Minimum Monthly Planning Fee Revenues for the 2nd through 4th Quarters were revised downward to $14,000 to reflect reduced Departmental costs due to the reduction of 1.5 FTEs from the FY09 Adopted Budget. Second Quarter Actual Revenues averaged $26,310, exceeding the minimum required revenues for the Quarter by $36,930 (see Second Quarter Report, previously reviewed at the January 20, 2009 Commission meeting). Third Quarter Actual Revenues averaged $16,209, exceeding the minimum required revenues for the quarter by $6,627 (see Third Quarter Report, previously reviewed at the May 11, 2009 Commission meeting). Fourth Quarter FY09 Planning Fee Revenues were as follows: 291 Actual Revenues 4th Qtr. FY09 April 2009 $20,814 May 2009 23,207 June 2009 22,973 4th Quarter Total Fee Revenues $66,994 Average Per Month $22,331 The Fourth Quarter FY09 monthly average of $22,331 exceeded the minimum required revenues for the quarter by $24,993. And for the quarter, only $2,520 of the total fees collected were for the handling of Improvements Agreements; all other fees collected were for project development applications. 2. Increase Planning Fee levels based on audit findings, to more accurately cover the costs associated with processing applications. New fees went into effect on August 28, 2008 and had a positive effect on revenues throughout the balance of the fiscal year. 3. Reduce FTE’s by: 1 Planner Tech, 0.5 Admin Assistant, 1 Workforce Housing Coordinator. Since these reductions, additional vacancies have occurred: · In August, a vacancy occurred in the Planner III-Long Range Planning position. In mid September the 0.5 FTE Administrative Assistant position became vacant. · Together, these positions represented 1.5 FTEs and approximately $6,000 of FY09 budget authority for each month of the fiscal year. · In effect, Planning Fee revenue could have fallen to $14,000 per month and the Planning Fund would not require increased General Fund dollars to stay in balance. · The Planner III position was not filled. A minor amount of contract Administrative Assistant help was required to see the department through the year, paid out of contract serves budget. · In addition, contract Planner services were terminated early in FY09. 4. Budgeted Expenditures: The Department’s FY09 budget averaged $69,756/month ($837,000 for the year). Actual spending through May 2009 averaged $62,510 / month, or approximately 10.4% under budget. 5. Applications Received: The following table lists the planning applications that were received each month of this quarter. For the months of April, May, and June 2008 (4th Quarter, FY08), the department averaged 42 applications / month. In the 4th Quarter of FY09, the department averaged 40 applications / month (not including sign permit applications. 292 Application Type Apr-09 May-09 Jun-09 FISCAL YEAR TOTAL Pre-Application 2 4 Prelim. Plat 1 4 Final Plat 1 6 Sub. Exempt. 1 6 Flood Plain 0 BOA 1 3 9 Admin. Appeals 2 Master Plan Amend 0 UDO Amend 0 CUP 1 2 17 ZMA 1 1 Conservation Update 0 Entryway Update 0 PUD 1 1 PUD Final 0 Re-use 2 2 10 Annexation 1 1 Prel. Site Plan 4 1 30 Master Site Plan 1 3 Final Site Plan 2 4 3 32 Mods to FSP 5 5 3 38 Informal 2 3 15 STUP 2 2 3 11 COA 13 18 21 207 Improvements Agree 3 10 Conversions 1 2 1 4 Variance 1 1 Code Enforcement 8 Monthly Totals 37 39 43 420 Signs 48 38 46 297 293 6. Workload for next quarter: While the national credit and finance problems are expected to continue to have a negative effect on subdivision and building activity in the City, a number of items will affect workloads in the department. · A large number of major subdivisions in various stages of preliminary and final plat approval continue to require a great deal of staff time to process requests for extensions, improvements agreements, re-phasing, re-platting, and, in some cases, working out details of financial guarantees taken over by banks. These subdivisions include: Baxter Meadows; Meadow Creek; Legends II; Flanders Creek; West Winds; Story Mill; Laurel Glen; and the Village Downtown, to name a few. Staff will especially be dealing with the issue of remaining improvements to be completed in many of these subdivisions throughout FY10. · Department staff members anticipate a continuation of taking the lead in preparing site plan and subdivision applications for a variety of City-owned projects, including developments such as the Story Mansion CUP, Story Mansion Minor Subdivision, Bogert Park Band Shell, Lower Yards Site Plan, Lower Yards Minor Subdivision, Park Improvements (bathrooms and concession buildings), etc. In-house preparation of these applications has saved, and will continue to save the City thousands of dollars in consultant fees, while adding considerably to staff’s workload. · Long Range planning activities will continue to occupy a great deal of Department time and resources as we head into FY10. Finalizing and implementing the Bozeman Economic Development Plan and the Downtown Neighborhood Plan will be top priorities, along with processing UDO edits to comply with the recently-adopted Growth Policy. · The new American Legion Building has been reviewed and approved for construction. Staff anticipates more time spent in FY10 reviewing and processing re-development applications with property owners affected by the blast. · The Planning Department is now fully engaged in staffing of various Tax Increment Finance Boards. · Census 2010 – the Planning Department has been designated to be the City’s primary liaison with the Census Bureau. FISCAL EFFECTS: With FY09 permit fee revenues 40.5% over the minimum necessary to balance the budget ($261,391 collected for the year, instead of the $186,000 minimum needed), and total expenditures 10.4% under budgeted amounts (see Budgeted Expenditures section above) the Department placed considerably less pressure on the City’s General Fund than anticipated. As a result, the General Fund contribution to the Planning Fund that is needed to balance the Planning Department’s budget at the end of FY08 will be repaid, and additional unused FY09 General Fund contribution remains available for other uses. ALTERNATIVES: As suggested by the City Commission. Report Compiled: July 29, 2009 294