County staff: timing and law changes cloud potential millions in zoning and solar permit revenue

LEE COUNTY, Ill. — County staff told the Finance Committee that several large development projects — including solar arrays — could create significant building-permit and developer-deposit revenue, but they cautioned the money is uncertain in timing and not yet appropriate to treat as recurring budget revenue.

Paul (staff member) explained that recent legislation changed how the county handles some zoning fees and developer payments. Rather than collecting permitting fees that became county revenue to spend, the county now typically requests an upfront deposit (which staff likened to an escrow) and treats it as an agency fund: expenses related to the development are charged against the deposit and any remaining balance must be returned to the applicant. "Once you show the expense you had against it, now you can use that and say, here's my revenue, but it basically covers your expense," Paul said.

Staff said a handful of projects in discussion could generate more than $1 million in building-permit-related fees, but timing varies: some developers may pull permits this fiscal year, some next year and others may delay or not proceed due to changing legislation. Jeremy cautioned that the county should not plan its core budget on such receipts: if the projects occur, the county can make budget adjustments using the standard budget-amendment process to appropriate any unanticipated revenue.

Committee members also raised enterprise-zone fees and how those are administered; staff said enterprise zone fees typically flow to the zone organization rather than the county’s zoning fee line item. The county will continue to work with the state's attorney and developers’ attorneys on contract and fee structure for pending projects, staff said.