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Staff proposes standalone building/construction fee fund under SEA 1001; revenue shortfall possible
Summary
Staff said SEA 1001 requires certain building-department expenses be pulled out of the general fund and placed in a standalone building and construction fee fund and warned the city may not generate enough permit revenue to support those expenses.
Presenter (S1) described how a new statutory change (SEA 1001) requires the city to isolate building-department costs into a distinct fund supported by permit fees. "We included a new building and construction fee fund. So there's a new statute, SEA 1001, which requires the building department ... expenses to be pulled out in general fund," Presenter said, and warned he is concerned the city may not have enough building-related revenues to support roughly $240,000 of current expenses being attributed to the building department.
Council members urged staff to prepare fee estimates and to model whether higher permit fees, reorganization of which staff/functions sit in that fund, or general-fund subsidies would be required to maintain service levels. No fee increases or ordinance changes were adopted at the workshop.
