SPECIAL FUNDS
Fund 005: DEVELOPMENT SERVICES FUND The Development Services Fund accounts for the financial transactions related to development case processing. Developers are required to make an initial deposit upon opening a case project. The deposit is drawn down upon as processing costs are incurred until the balance reaches the minimum required deposit established by the City. Any costs incurred in excess of the minimum required deposit are billed to and paid directly by the developer. Fees for development processing costs, such as those related to General Plan amendments, zone changes, master plans, park plans and park design, transportation impacts, development agreements, tentative tract and parcel maps, and sign programs, are based on the direct costs required to review, check and inspect development applications submitted to the City for approval, plus applicable overhead costs. When a development case is completed and all related costs have been billed, any balance remaining in the developer's deposit account is refunded. As the City transitions to a two-year budget in the context of a five year plan, the primary issues facing the Community Development department include the need to increase fees to cover the cost of development processing and reducing expenses to match an anticipated decrease in development volume as the City approaches build out. The City has not increased its development fees in over 10 years and, without a fee increase, current projections show the special fund balances in the Developer Deposit Fund (005) turning negative in the coming years, requiring a general fund subsidy. Based on the recommendations of a third party cost study commissioned by the City in 2018, staff is proposing a 20 percent increase to permit and inspection fees and a 10 percent increase to planning fees.
FY 2019-21 Proposed Budget
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