Submitted By: Tye Chighizola
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Presentation By: Tye Chighizola
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Adopt Budget Resolution 2022-140 reducing building permit fees to comply with Florida Statutes 553.80(7)(a).
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OCALA'S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The Florida Statutes allows local governments to collect fees associated with the enforcement of Florida building codes (permits, plan reviews, inspections, training, and related costs). In July 2019, the Florida Legislature passed a bill (HB 447) that states that a local government cannot carry forward an amount exceeding the average of its operating budget for enforcing the Florida Building Code for the previous four fiscal years.
The four-year average (fiscal years 2018-2021) for expenses is $1,953,602 with an average revenue of $2,634,849. The fund balanced increased from $675,235 in FY18 to $2,342,931 in FY 2021. Currently, the fund balance, which includes revenue/expenses for the first two quarters of FY 2022, is approximately $2,890,030.
Since 2019, staff and the auditors have monitored the building revenue/expenses for compliance with Florida Statues 553.80(7)(a). In FY 2021, the City eliminated fees for specific single-family residential permits under $5,000. The increase in permits and the value/scope of those permits over the past year are likely to continue. Like many building departments in Florida, wages have been increased for staff; however, maintaining and recruiting is difficult.
Staff is proposing to reduce the building fees for the remaining five months of this fiscal year and fiscal year 2023 (see attached resolution with the changes highlighted in yellow). The proposed changes include reducing permits based on the value and square footage for building, electrical, plumbing, gas, and mechanical permits. All base fees and other permits will remain the ...
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