Community Development Agency warns of falling permit revenue and growing unfunded mandates

Tricia Tillotson, director of Nevada County’s Community Development Agency, briefed supervisors on department budgets that span agriculture, building, code and cannabis compliance, environmental health, planning and public works. She said the agency must strike a balance between core services and constrained revenue streams.

Tillotson said building permit values remain low despite process improvements; the department is issuing many small permits (for reroofing and modest remodels) rather than high‑value new‑construction permits, which reduces fee income. The Building Department plans to hold two positions and keep one vacancy to limit fund‑balance erosion while seeking efficiencies.

Environmental Health flagged new state mandates — including implementation of organic‑waste inspections under recent laws — that are not funded by the state and will require using fund balance (the department is projecting a near‑term drawdown of reserve funds). Tillotson said the department will pursue internal efficiencies and monitor attrition to limit costs.

Public Works staff noted the plateau in gas‑tax revenue and rising costs for roads and fleet, which will constrain pavement and maintenance plans; the department continues to complete capital projects where grant funding is available but said long‑term maintenance funding is uncertain. Planning staff said they will begin the housing element update and the resource‑resiliency roadmap work, but long‑range plan updates are costly and currently dependent on fund balance or external grants.

Tillotson described active grant pursuit for recreation and climate projects but cautioned that ARPA and other one‑time sources are largely expended. She said staff will present an impact‑fee analysis and possible fee adjustments later in the year, and emphasized that some long‑range planning work will continue from existing fund balances.