20210407-003c: DSD FY 2022-2026 Financial Forecast — original pdf

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Fiscal Year 2022 – 2026 Financial Forecast Environmental Commission April 7, 2021 1 Development Services Mission: To support a vibrant community through responsible development. 425 Full-Time Employees 36 Temporary Employees Fiscal Year 2021 Budget: $64.2M Goal/ Indicator Conduct timely plan reviews and inspections Percent of DSD controlled activities on-time Protect and renew Austin’s tree canopy Percentage of Austin’s total land area covered by the tree canopy Properly steward financial resources Percent of operating expenses held in reserve Provide excellent customer service Percentage of customers reporting satisfied or very satisfied on Customer Satisfaction Poll 2 Development Services FY2020: Top 10 Accomplishments Office of the Director • Executive functions • Austin Center for Events Customer & Employee Experience • Customer Experience • Finance • Human Resources • • Stakeholder & Community Engagement Information Technology Building Plan Review • Building Plan Review Land Development Review Construction & Environmental Inspections • Capital Improvement Program Review • Community Tree Preservation • Land Use Review • Regulatory Policy & Administration • Transportation & General Permit Review • Building Inspections • Environmental Inspections • General Permit & Telecom Inspections • Site & Subdivision Inspections 3 Budget Process • Required by City Charter • Ensures proper spending and monitoring of taxes and fees paid by public Budget Kick-off January 2021 Budget Engagement Mar – Apr 2021 Budget Public Hearings August 2021 Budget Development Jan – Mar 2021 Budget Submitted May 2021 Budget Adoption August 2021 4 Funding Sources FY 2021 Forecast $61.86M FY 2022 Forecast $64.31M $6.92 General Fund $7.29 Other $7.56 General Fund $7.66 Other $26.65 Building Safety $27.50 Building Safety $21.00 Development Fees $21.59 Development Fees 5 Funding Sources Five-Year Revenue Forecast $78.00 $72.00 $60.00 $54.00 Building Safety $66.00 Development fees $61.49M $61.86M 3.8% $64.31M 4.0% $69.39M 3.7% $66.70M $73.34M 2.9% $71.28M 2.7% FY20 FY21 FY22 FY23 FY24 FY25 FY26 Revenue Growth in % Forecast Five-Year Forecast 0.8% Actuals FY19 Program FY18 FY20 FY21 FY22 FY23 FY24 FY25 FY26 Building Safety $23.15M $27.16M $27.22M $2.65M $27.50M $28.60M $29.69M $31.14M $32.46M Development Fees $17.92M $24.95M $20.92M $21.00M $21.59M $22.21M $23.42M $24.47M $25.27M Other General Fund $1.18M $5.40M $5.81M $7.29M $7.66M $8.08M $8.27M $7.63M $7.42M $16.55M $7.54M $6.92M $7.56M $7.81M $8.02M $8.03M $8.20M % Change 75% -17% 1% 4% 4% 4% 3% 3% Total $42.25M $74.05M $61.49M $61.86M $64.31M $66.70M $69.39M $71.28M $73.34M 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 6 Fee Calculation Methodology Regulations Resources Resources required to administer regulations $$$ Factors Factors involved with individual fee calculations Annual Proposed BUDGET Annual Projected VOLUME Estimated Required TIME $ Proposed Fees Computation of individual fees 7 Proposed Operating Budget $64.3 Million* Up $0.1M from FY21 Fiscal Year 2022 (by Category) Personnel Personnel $46.1M $19.7M $1.0M Expense Refunds ($2.9M) Contractuals Commodities Non-CIP Capital $403K 72% 30% 2% -5% 1% *12% of DSD budget funded through general fund Contractuals 426 Full-Time Employees 36 Temporary Employees Baseline Cost Drivers  Citywide Cost of Living Adjustments + $0.7M  Citywide Cost Allocations/ Admin Support - $0.4M Commodities Expense Refunds Non-CIP Capital Budget Reductions  Expense Budget Personnel Contractuals Commodities Expense Refunds Non-CIP Capital - $0.2M -$153K $341K $0K -$41K -$56K 8 Five-Year Forecast FY2020: Top 10 Accomplishments FY21 Budget FY21 Forecast FY22 FY23 FY24 FY25 FY26 $12.2M $18.3M $21.4M $21.4M $21.4M $21.4M $21.4M $61.9M $61.8M $64.3M $66.7M $69.4M $71.3M $73.3M $64.2M $58.7M $64.3M $66.7M $69.4M $71.3M $73.3M ($2.3M) $3.1M $0.0M $0.0M $0.0M $0.0M $0.0M Beginning Balance Revenues Expenses Excess (Deficiency) Ending Balance $9.9M $21.4M $21.4M $21.4M $21.4M $21.4M $21.4M FTE 425 425 426 434 444 446 449 9 Development Forecast Forecast Employment Population Development Activity Capitol Market Research: May 2020 Report • 2021: Commercial and residential projects were forecasted to be lower than in previous years • 2022: Activity is projected to reach previous levels with accelerated activity over time 10 Key Performance Indicators FY2020: Top 10 Accomplishments Goal/ Indicator Conduct timely plan reviews and inspections Percent of DSD controlled activities on-time Protect and renew Austin’s tree canopy Percentage of Austin’s total land area covered by the tree canopy Properly steward financial resources Percent of operating expenses held in reserve Provide excellent customer service Percentage of customers reporting satisfied or very satisfied on Customer Satisfaction Poll FY2021 Forecast: Target: 86% 90% Forecast: 31.2% Target: 30.8%* Forecast: Target: Actual: Target: 35% 50% 48% 46% *no net loss 11 Environmental Inspections FY2020: Top 10 Accomplishments Staffing (positions filled): • Tree and Environmental Inspections: > 4 Senior Inspectors (Residential) > 3 Senior Inspectors (Commercial) • Underground Storage Tanks > 1 Inspector > 1 Senior Compliance/ Enforcement Inspector > 1 Administrative Senior • 2 Outdoor Amplified Sound Inspectors 12 Environmental Inspections FY2020: Top 10 Accomplishments Training and Certifications: • Launched incentive program for Certified Erosion, Sediment and StormWater Inspector (CESSWI)TM and International Society of Arboriculture (ISA) certifications > 52.6% staff ISA certified > 21% staff CESSWI certified • Hired an ISA certified trainer • Partnering with City Arborist, Watershed and Review/ Inspections staff: > Updating Standard Operating Procedures > Hosting regular meetings, virtually and on-site • Weekly staff and supervisor meetings 13 Environmental Inspections FY2020: Top 10 Accomplishments Residential Inspection Data: • Tree Inspections > 3,628 inspections (fiscal year to date) > Average 605 per month • Environmental Inspections > 4,023 inspections (fiscal year to date) > 671 average per month > 1,025 needing inspection per month • Increase in inspection staff will result in approximately 10 combination inspections per day, per inspector 14 15