FY2014 Recommended Budget - City of Surprise

Public Works Development Fee Fund
Description
The public works development fee fund is established to account for the inflow of public works
development fees levied on new residential and commercial construction. This fee can only be used for
the purchase, construction, financing, and furnishing of new capital or one-time items directly related to
the increased demand on public works services caused by growth. Development fees cannot be used to
subsidize operational needs.
Revenues are based upon an estimated issuance of 250 single family residential permits and the
estimated square feet of 217,800 non-single family residential permits in FY2013. On April 26, 2011
Senate Bill 1525 was signed into law and changed the method the city used to calculate development
impact fees. Arizona Revised Statutes §9-463.05.K requires municipalities planning to continue assessing
development impact fees complete an interim study effective January 1, 2012 and an updated
development impact fee study effective August 1, 2014. The city has revised fees based on the interim
study and plans on meeting the requirements of the August, 2014 deadline. The public works
development fee for single family residential permits was revised from $998 to $109 as of January 1,
2012.
Major Budget Changes
With minimal forecasted development revenue for the funds, the only programed expenditures are for the
impact fee study and purchase of sanitation and recycle containers for new solid waste customers. Fund
balance and remaining available revenue is programmed as contingency at $9,734,700. The city will
continue to review and evaluate potential projects through the preparation of the Infrastructure
Improvement Plan (IIP) for the impact fee study update.
FY2011 FY2012 FY2013 FY2014 Amended to
Expenditures
By category
Personnel
Actual Actual Amended Budget Budget
Supplies 15,668 18,391 20,000 64,000 220%
Services 26,076 44,863 41,000 20,000 -51%
Capital 238,881 273,087 587,600 0 -100%
Contingency 0 0 8,500 9,734,700 114426%
Total
By department
280,625 336,341 657,100 9,818,700 1394%
Finance 13,861 782 28,500 20,000 -30%
Public Works 266,764 335,559 628,600 9,798,700 1459%
Total 280,625 336,341 657,100 9,818,700 1394%
Revenues
By fund source
Charges for Svcs/Oth 583,670 191,018 90,100 255,100 183%
Transfer In 0 0 0 0 0%
Total 583,670 191,018 90,100 255,100 183%
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