Title:
Budget Amendment - Appropriation of General Fund Balance for Huntersville Land Development Services
Summary
ACTION:
Appropriate $463,205 from General Fund Balance for the Town of Huntersville to provide Land Development services in the future
Staff Contact: Dave Canaan, LUESA - Storm Water
Presentation: No
BACKGROUND/JUSTIFICATION:
LUESA - Storm Water Services provides Land Development services on behalf of the six Towns. These services include enforcement of the Town’s zoning, subdivision, water quality, planning, floodplain and other ordinances.
In March 2018, the Town of Huntersville Board of Commissioners instructed Town staff to initiate discussions with the County on the potential for the Town to assume the responsibility of providing Land Development services. The County was informed that the Town’s reasons for assuming responsibility for providing these services are to create a one-stop shop; increase the Town’s control and ownership to match the Town’s accountability for roads, sidewalks, street trees, etc.; and enhance the ability for the Town to adjust fees. Since March 2018, Town and Storm Water staff have been meeting to address the many issues that need to be resolved for a successful transition of services to the Town effective July 1, 2019.
One of the issues that needs to be addressed is the disbursement of Pre-Paid Land Development fees to Huntersville. When construction plans are submitted for review within the Towns at the start of a project, Land Development fees are paid to compensate the County for plan review, permitting and inspection services the County provides throughout the duration of the project. Some projects (large commercial and large residential, as examples) may last as long as 5 to 7 years. Therefore, the related General Fund balance is designated to fund support services in the future in the event there is an economic downturn and to fund future technology upgrades for Land Development Services. Projects in all of the Towns contribute funding from the pre-paid fees to the designated fund balance. The County and the six Town Managers analyzed the designated fund balance through the close of FY18, including fees collected from development in each Town. The County and Town Managers agreed that 52% of the total designated fund balance should be disbursed to the Town of Huntersville - which equates to $463,205. At the end of FY19, the County and six Town Managers will analyze the designated fund balance to determine if any additional disbursement of pre-paid fees to Huntersville is recommended. In FY20 and beyond, any shortfall in revenue or increase in need for Land Development services for development activity within its jurisdiction will be the responsibility of the Town of Huntersville.
LUESA - Code Enforcement provides services to ensure compliance with the NC Building Code countywide. The Town has expressed that they have no interest in assuming the responsibility of providing those services. Also, the Town has requested the County continue to enforce the Town’s Floodplain Ordinance due to the relative infrequency of development in the floodplain in Huntersville and the complexities of managing this regulatory program to the State of North Carolina and FEMA standards. The County will also continue to manage the EPA, National Pollutant Discharge Elimination System (NPDES) permit in partnership with all the municipalities. The NPDES permits include numerous activities that focus on protecting water quality during and after development.
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
FY19 - Appropriate $463,205 from General Fund balance for payment to the Town of Huntersville.