Development services staff and the city manager told council that permit and development fee revenue are expected to increase in FY2026 and that the department's additional staffing and inspection-cost requests are intended to be largely fee-supported.

Don (Development Services) and Amber (department staff) told council they consulted subdivision builders and identified a conservative projection of about 90 new residential units next fiscal year. Amber summarized the developer input: "30 houses for The Canyon and 30 houses for Sunset Ridge, 20 houses for Ashton Homes, and 10 for Stonehurst." She said those figures were based on conversations with the developers and are subject to market conditions.

Staff said they used recent permit activity as a baseline: Amber noted roughly 78 permits generating about $392,000 in revenue through mid‑July and that fee schedules had not been comprehensively updated in recent years. Don said inspections fees charged through third-party inspectors will cover higher inspection costs, and staff said many fee lines (plat fees, water taps, miscellaneous permit fees) have separate GL codes so collections can be tracked and reported.

On impact fees, staff told council that impact‑fee proceeds are recorded under the enterprise fund and cannot be co-mingled with the general fund; Amber said the funds are restricted and can only be used to upgrade related systems. "Anything collected for an impact fee can't be just used for anything. It can only be used to upgrade our systems," she said.

Council asked staff to continue refining revenue projections and to return with fee-schedule recommendations once the budget book is prepared.