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HomeMy WebLinkAboutPlanning Department 1st Quarter Fiscal Report 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 1st Quarter FY10 (July 1, 2009 – September .30, 2009) Budget Update MEETING DATE: August 3, 2009 AGENDA ITEM TYPE: Consent RECOMMENDATION: Move forward with current Planning Department staff levels per FY10 Adopted Budget; continue to monitor revenue situation closely 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 FY10 Budget was balanced with the following assumptions: 1. Monthly Planning Fee Revenues of $14,000 minimum. This estimate is a continuation of the base minimum average used for the last three quarters of FY09, and has been carried forward into FY10. First Quarter FY10 Planning Fee Revenues were as follows: Actual Revenues 4th Qtr. FY09 July 2009 $19,859 August 2009 10,173 September 2009 10,933 1st Quarter Total Fee Revenues $40,965 Average Per Month $13,655 The First Quarter FY10 monthly average of $13,655 is slightly below the $14,000 target for average monthly revenues. For the quarter as a whole, this means that permit revenues of $40,965 were $1,035 (approximately 2.5%) short of the $42,000 target. However, this shortfall is more than made up by the fact that the Department has processed a number of zoning and subdivision applications for other City departments since June of 2009, without collecting fees. These projects include: 6 Departmental Project Amount of Fee Waiver Lower Yards Final Site Plan $2,250 Lower Yards Preliminary Plat (pro-rated for FY10) 706 Story Mansion Subdivision Pre-Application Plan 550 Story Mansion Subdivision Preliminary Plat 1,045 Downtown Parking Certificate of Appropriateness 425 1st Quarter FY10 total fee waivers $4,976 Adding the waived fees into the 1st Quarter total revenues would have increased total permit revenues to $45,941, and resulted in an average per month revenue of $15,314 for the Quarter. In addition to the fee waivers granted for City projects, Departmental staff (with Engineering Division personnel) took the lead role in preparing and submitting the Lower Yard and Story Mansion zoning and subdivision applications. Working in this manner on behalf of other City departments saved the City tens of thousands of dollars in consulting fees. An itemized accounting of these savings can be provided upon request. Finally, the Department’s contribution to staffing the North Seventh and Northeast Urban Renewal District Board now amounts to approximately ½ FTE. This relatively new, and certainly expanding, role is essentially unfunded. At some time in the future, the Commission may wish to consider tapping urban renewal district funds to help fund this level of staffing through the Department of Planning and Community Development. 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. They had a positive effect on revenues throughout FY09 and continue to do so in FY10. 3. Reduce FTE’s by: 1 Planner Tech, 0.5 Admin Assistant, 1 Workforce Housing Coordinator. These reductions in force occurred early in FY09. These positions are not proposed to be filled in FY10. Nor are a Planner III or an additional .5 FTE administrative position, both of which became vacant in FY09, planned to be filled in FY10. Finally, the Department has not contracted for planner services since early in FY09. 4. Budgeted Expenditures: The Department’s FY10 budget is approved for an average of $65,357 in expenditures per month ($784,287 for the year). Actual spending through August 2009 averaged $62,916 / month, or approximately 3.8% under budget. 5. Applications Received: The following table lists the planning applications that were received each month of this quarter. In the 1st Quarter of FY10, the department averaged over 36 project applications / month (plus a total of 91 sign permit applications). In the previous three months (4th Quarter FY09), the department averaged 40 project applications per month (plus a total of 132 sign permit applications). 7 Application Type July-09 August- 09 Sept.-09 1st QUARTER TOTAL Pre-Application 1 1 2 Prelim. Plat 1 1 Final Plat 1 1 Sub. Exempt. 1 2 3 Flood Plain BOA Admin. Appeals Master Plan Amend 1 1 UDO Amend CUP ZMA 1 1 Conservation Update Entryway Update PUD PUD Final Re-use 3 1 4 Annexation 1 1 Prel. Site Plan 3 1 4 Master Site Plan 1 1 Final Site Plan 5 4 2 11 Mods to FSP 4 4 2 10 Informal 1 1 2 STUP 1 1 COA 27 15 14 56 Improvements Agree 2 2 Conversions Variance Code Enforcement Monthly Totals 45 28 28 101 Signs 35 20 36 91 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. 8 · 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 continue to occupy a significant amount of Department time and resources in 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. · Construction on the new American Legion Building has commenced. 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 FY10 permit fee revenues at 97.5% of budget, and total expenditures approximately 3.8% under budget, the Department is placing just about the amount of pressure on the City’s General Fund as anticipated in the approved FY10 budget. Reduced permit activity from the preceding Fourth Quarter FY09 is a concern, and warrants close monitoring in the Second Quarter FY10 and throughout the year. Given the Department’s commitment to staffing two TIF District Boards, funds from those programs could perhaps be used to make up any permit revenue shortfall as the fiscal year progresses. ALTERNATIVES: As suggested by the City Commission. Report Compiled: October 15, 2009 9