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

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City Administrator Ulrich noted that there are contracted staff that are funded through building permit revenue as well. Community Development Director Gladhill stated that some charges were reduced to gain compliance and the expenses to review and inspect the smaller permits are more than the fee charges for the permit, with the expectation that additional compliance will be gained in return for the lower permit fee. Finance Director Lund stated that building permit fees do not strictly fund salary and reviewed some of the other related expenses that are covered by the revenue source. Councilmember Menth asked for clarification on the statement that some of the smaller permit expenses are not covered by the permit fee. Community Development Director Gladhill confirmed that to be true, noting that it was an intentional change meant to gain compliance on items such as basement finishes and decks. He noted that those can be dangerous situations if not completed correctly and therefore review is important and therefore the fee was lowered slightly. Councilmember Heinrich referenced the surplus amount and the comments of Councilmember Riley. She stated that she also finds it concerning that there is such a large surplus. She stated that perhaps the Council discuss what it is comfortable with compared to Councils of the past. Councilmember Kuzma stated that his understanding it that the City estimates conservatively on the permits as the number of permits that will be generated during a year is unknown. Community Development Director Gladhill confirmed that it is difficult to forecast permit revenue. He stated that the discussion has fixated on building permits but that is just one piece of the surplus. Councilmember Kuzma asked if staff is comfortable with the forecasted 2020 amounts. Community Development Director Gladhill noted that additional revenue was forecasted in this proposed budget compared to the 2019 budget. He stated that in his experience when he has seen someone stretch too far in anticipated revenue, a slowdown often hits. He stated that they may be seeing the end of a building cycle in the near future, where a slowdown will occur. Mayor LeTourneau asked if the Council would rather give direction to staff to forecast a more aggressive pace or stay at a conservative pace. Councilmember Riley stated that he would not favor aggressive or conservative and would aim for accuracy. He recognized that the guess will not be correct but would like the best estimate. Councilmember Heinrich agreed that the guess should be the best guess. City Council Special Work Session / September 3, 2019 Page 5 of 17