Agenda - Council - 09/24/2019 - Laserfiche WebLink

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Community Development Director Gladhill stated that there are sometimes large projects that will provide revenue. He confirmed that both revenue and expenses are tracked and used for budgeting. City Administrator Ulrich stated that generally staff reviews the line items each year to determine the appropriate amounts for the next year. He stated that in previous years when development was booming there were surpluses over $1,000,000 at the end of the year and therefore that has been reduced. He stated that the question would be how tight the City would want to get on those projections, as they do not want to create a deficit situation. He noted that the surplus funds are distributed to different City funds and therefore remain for use by the City in future years. Councilmember Musgrove asked for additional information on building permits. Community Development Director Gladhill stated that the plan review process has become more efficient. He stated that the inspection staff is feeling taxed but has been able to keep up with the approved metrics for service. He noted that there is some slippage in the service timeline during peak times. Councilmember Musgrove asked if the price of permits was lowered in return for compliance and asked if that goal was achieved. Community Development Director Gladhill stated that it would be difficult to track. He noted that the number of permits has increased but the reason for that increase cannot be determined. He noted that there will always be a lack of compliance no matter the fee that is charged. He believed that a higher degree of compliance has been reached. Councilmember Musgrove asked if all permit prices were decreased or only certain permits. Community Development Director Gladhill noted that several permit prices were reduced, mainly those related to plan review, because of the more efficient process. He stated that a number of communities have increased the cost of permits a small percentage each year, whereas Ramsey has held the same price for over 15 years and then decreased the cost. Councilmember Musgrove stated that the City pays a salary to the staff and asked what the permit fee actually pays above what the City has already paid staff for. She asked why it would not be a good idea to lower the fees more. Community Development Director Gladhill confirmed that there is a service the City provides but the State has a building code that is required. He stated that the City pays a salary but there are a number of revenue sources that can be used including permit fees. He stated that the City is obligated to administer the building code per State rules. He stated that the general tax rate would raise if building permits are not used to fund the building department. He explained that the revenue from building permits is then used to fund the building department, rather than every resident funding the review of permits submitted by those requesting to build. City Council Special Work Session / September 3, 2019 Page 4 of 17