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Council establishes separate Planning & Building fund to comply with state law
Summary
Ordinance 26-18 creates a dedicated planning and building fund so fees and permit revenues no longer go into the general fund beginning Jan. 1; staff warned the change could require future adjustments to the 2027 budget.
The council adopted Ordinance 26-18 to establish a special planning and building administration and regulation fund as required by recent amendments to state law. Town attorney/manager Michael Griffin said the change requires departmentalizing planning and building activity so fees collected for permits and related services are placed into the new fund starting Jan. 1.
Griffin explained the practical effects: the new fund will support the planning and building department, the board of zoning appeals and the planning commission; beginning Jan. 1, building-permit fees will be deposited into that fund rather than the general fund. "For every city and town Indiana, we have to move the planning and building function out of the general fund and establish it as its own fund," Griffin said, adding that staff may return to council to discuss how the change affects the general fund for the 2027 budget.
The ordinance passed on second reading with unanimous recorded votes. Staff said they are preparing for the January transition and will bring further budget adjustments as needed.
Why it matters: The change aligns the town with state law and alters the town's budget structure for permit revenues starting in the next fiscal year.
