AGENDA #4

February 26, 2003

Planning Department

Initial Budget Presentation to the Mayor and Town Council

2003-2004

I.          Mission Statement

The primary mission of the Planning Department is to help the Chapel Hill community articulate goals and visions for its future, and to assist the Town Council as it manages the development/conservation of resources to achieve that future.

II.         Brief Services Description

            The key services provided by the department are

• Manage the Development Review, Approval, and Permitting Process

• Implement Initiatives Related to Chapel Hill’s Land Use Management Ordinance

• Maintain and Amend the Land Use Management Ordinance and Zoning Map

• Provide Long-range Planning Services - - Comprehensive Plan, Transportation Planning, Annexation, Capital Improvements Program, Special Studies

• Administer Housing Programs, Manage funds provided by the Community Development Block Grant Program

• Provide Staff Support to 7 Town Advisory Boards, along with additional Committees and Task Forces

• Provide Citizen Information

III.       Departmental Revenue Estimates

Following is a summary of the Planning Department’s revenues:

Revenue Source	Actual 2001-2002 Revenues	2002-2003 Budgeted Revenues	Actual 2002-2003 Revenues to Date	Proposed Budget For 2003-2004 Revenues
Planning Grants Application Fees Sales of Documents	30,500 199,880 960	31,000 310,000 1,000	0 70,719 502	0 241,000 1,000

Key notes:

• Revenues are well below projections for the current year.

• Revenues from application fees are difficult to project.

• We expect higher revenues for 2003-04, because more types of applications need to go through a formal review and will need to pay higher application fees (due to regulations in new Land Use Management Ordinance).

IV.       Departmental Base Budget Cost Estimates

             Following is a summary of the Planning Department’s costs:

Budget Category	2002-2003  Original Budget	Requested 2003-2004 Budget
Personnel	880,187	1,006,460*
Operations	79,542	79,542
Capital Equipment	0	0
TOTAL	959,729	1,086,002

*Includes Community Development and Transportation costs paid for by grant funding, which appeared in different categories in 2002-03 budget.  Requested budget for 2003-04 covers same level of personnel as the 2002-03 budget for the Planning Department.

No changes in staffing levels are included as part of the base budget request.

V.        Key Programs or Services that are Going Well

Chapel Hill’s Planning Programs continue to be on the leading edge for communities in North Carolina and communities nationally.  In the areas of:

· Comprehensive Planning,

· Neighborhood conservation,

· Environmental protection,

· Affordable housing,

· Urban design,

· Community involvement,

· Evaluation of development proposals, and

· Promotion of pedestrian, bicycle, and transit systems,

We believe that Chapel Hill’s assertive approaches to growth management have served the community well.

VI.       Key Programs or Services that Could be Improved

The key challenges we currently face are related to resource constraints.  Many initiatives are underway simultaneously, (mostly related to implementation of the new Land Use Management Ordinance, but also related downtown, environmental management and neighborhood planning issues) and there is more work to do than can be done with current resource allocations.  We are keeping operations going with overtime hours from existing staff, and delaying some work.  We believe that the prospect of overlaying new tasks on a currently overloaded system needs attention.   

VII.      Proposed Additions or Reductions

Our base budget request for the Planning Department proposes a level of staffing next year in the Planning Department that is the same as our current situation. However, we have seen work demands increase dramatically since January 27, 2003, because of the enactment of the New Land Use Management Ordinance.

We continue to ask for consideration of:

· A new position to help us implement and administer the new Land Use Management Ordinance while we continue to work on other Council initiatives. 

The new ordinance requires new and substantial information to be required of applicants, and accordingly processed and evaluated by staff.  In four weeks, we have seen the time of our Current Development staff be almost completely consumed by these new responsibilities - - time talking to citizens, developers, builders, contractors, engineers, and time newly being spent with other departments (mostly Inspections and Engineering) to coordinate staff reviews and evaluations. 

VIII. If Required to Cut Budget by 5%

· 92% of the Planning Department’s budget is devoted to personnel expenses.

· Of the balance, most is devoted to mandated activity. 

· 5% budget cut could be accomplished with elimination of one currently funded permanent position.