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115 The City does not control when and where projects occur, rather the local market and broader 116 economy has the greater impact. Projecting for expenses and revenues year-to-year is 117 unrealistic, especially when considering staffing needs and workforce challenges. 118 Expense and revenue peaks and valleys within the graph usually represent a staffing shortage 119 and/or a large commercial project. For example, in 2016, expenses are low as there was a 120 period of time when the Community Development Director and Building Official positions 121 were not being funded. Additionally, a peak in revenue represents several new commercial 122 projects (Von Maur, Rosedale’sparking ramp, Cherrywood, Applewood, Calyxt). 123 This analysis demonstrates that Community Development’s fees are appropriate when analyzing 124 expenses against revenues over a longer period of time. Further, keeping building permit revenues in 125 the Community Development Fund provides for the most conservative accounting to ensure 126 Community Development can self-sustain in years when permit revenue is not sufficient to cover 127 expenses. 128 P OLICY O BJECTIVE 129 Fees for service are intended to be reviewed periodically to ensure they are sufficient to cover 130 expenses. 131 B UDGET I MPLICATIONS 132 Building permit fees are the primary source of funding for the Community Development Department. 133 S TAFF R ECOMMENDATION 134 Review the information contained in this RCA and forward any questions or concerns to staff. 135 R EQUESTED C OUNCIL A CTION 136 None at this time. Prepared by: Janice Gundlach, Community Development Director David Englund, Building Official Attachments: A: Building Permit Fee Comparisons B: September 26, 2019 Letter RE Building Permit Fees C: Estimated Fees for a $375,000 New Home D. Revenues, Expenses, Fund Balance Graph Page 4 of 4