CPHD DEVELOPMENT FUND Department of Community Planning, Housing and Development DEVELOPMENT FUND SUMMARY

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1 Department of Community Planning, Housing and Development Our Mission: To set the standard for excellence in public service by providing consistent quality and timely permitting, plan review, and inspection services both in building construction and zoning. DEVELOPMENT FUND SUMMARY The fee-supported units that comprise the CPHD Development Fund are the Zoning Division and the following sections of the Inspection Services Division: Construction Permit Administration Services, Construction Field Inspection Services, and Construction Plan Review Services. SIGNIFICANT BUDGET CHANGES The proposed expenditure budget for the CPHD Development Fund is $22,851,032, a five percent increase over the adopted budget. The proposed budget reflects: Personnel increases due to employee salary increases, an increase in the County s cost for employee health insurance, and retirement contributions based on current actuarial projections; offset by the removal of one-time salary funding for technology support associated with Permit Arlington ($225,984), adjustments to account for staff vacancies and turnover, and the reduction below. expenses include the following position changes: Addition of a Zoning Plan Reviewer in the Zoning Division due to an anticipated increase in development activity and ancillary development activity associated with Amazon ($90,000, 1.0 FTE).* Addition of a Fire Protection Engineer in the Construction Plan Review Services Division due to an anticipated increase in development activity and ancillary development activity associated with Amazon ($125,000, 1.0 FTE).* Transfer in of three Code Enforcement positions from the CPHD General Fund to the Construction Permit Administration Services Division ($377,307, 3.0 FTEs). Addition of a Business System Analyst in Construction Permit Administration Services Division ($101,131, 1.0 FTE). Addition of a Permit Processing Specialist in Construction Permit Administration Services Division ($75,322, 1.0 FTE). Addition of a Fire Inspector in Construction Field Inspection Services Division ($116,896, 1.0 FTE). * The positions described above are proposed based on an assumption that the County Board will review the Performance Agreement with Amazon and approve it prior to adoption of the budget in April. Non-personnel increases due to the addition of funding for a Future Development Contingency Fund that will allow for flexibility in planning and development capacities related to Amazon ($300,000), overhead costs related to General Fund operational support ($170,529), operating expenses associated with new position adds ($29,000), an increase in the rent associated with the 10th floor office space ($16,798); offset by adjustments to the annual expense for maintenance and replacement of County vehicles ($7,428). Revenue increases due to an inflationary increase of 2.5 percent to all existing fees ($646,627) and an anticipated increase in development activity and ancillary development activity associated with Amazon ($10,338,233). Due to revenue projections, the utilization of fund balance is not required in.

2 DEVELOPMENT FUND FUND SUMMARY Proposed Budget Reduction Construction Permit Administration Services Eliminate a Deputy Building Official position ($198,829, 1.0 FTE). IMPACT: Supervision is now provided at the functional level so there is no impact. Special project work will be redistributed among staff, delayed, or postponed. FINANCIAL SUMMARY % Change Adopted Proposed 19 to 20 Personnel $11,039,783 $12,584,713 $13,204,713 5% Non-Personnel 6,896,355 9,137,420 9,646,319 6% Total Expenditures 17,936,138 21,722,133 22,851,032 5% Fees 19,226,185 15,526,903 26,511,763 71% Utilization of Fund Balance * - 6,195, % Total Revenues $19,226,185 $21,722,133 $26,511,763 22% Permanent FTEs Temporary FTEs Total Authorized FTEs * - The change in the fund balance is reflected in the following Fund Statement.

3 DEVELOPMENT FUND FUND SUMMARY CPHD Development Fund Fund Statement Adopted Re-estimate Proposed ADJUSTED BALANCE, JULY 1 Contingent Fund Reserve $5,298,793 $6,085,077 $5,380,841 $6,628,132 Capital Reserve 10,543,353 5,657,945 11,751,353 10,447,789 TOTAL BALANCE 15,842,146 11,743,022 17,132,194 17,075,921 REVENUE Fees 19,226,185 15,526,903 22,037,500 26,511,763 TOTAL REVENUE 19,226,185 15,526,903 22,037,500 26,511,763 TOTAL REVENUE & BALANCE 35,068,331 27,269,925 39,169,694 43,587,684 EXPENSES Personnel 11,039,783 12,584,713 11,956,353 13,204,713 Non-personnel 6,896,354 9,137,420 10,137,420 9,646,319 TOTAL EXPENSES 17,936,137 21,722,133 22,093,773 22,851,032 BALANCE, JUNE 30 17,132,194 5,547,792 17,075,921 20,736,652 Contingent Fund Reserve 5,380,841 5,547,792 6,628,132 6,855,310 Capital Reserve 11,751,353-10,447,789 13,881,342 TOTAL BALANCE $17,132,194 $5,547,792 $17,075,921 $20,736,652 Notes: Beginning in FY 2013, the CPHD Development Fund maintains a contingent reserve, which is a 30 percent balance of the total fiscal year s operating budget; this amount is equivalent to three to four months of annual operating expenditures. The CPHD Development Fund is not authorized to spend from this contingent without the County Board s approval. The Capital Reserve is a funding source for planned and unanticipated needs that exceed the amount available in the annual operating budget. The multi-year technology and one-time projects utilizing the Capital Reserve monies are: implementation of the County Manager s Permit Arlington initiative which includes replacement of the enterprise-wide permitting system and business process re-engineering; website improvements; creation of a customer service center enhanced case management; and enabling the submission of electronic plans through E-Plan Review. The expense budget includes a Future Development Contingency Fund that will allow for flexibility in planning and development capacities related to Amazon ($300,000).

4 ZONING DIVISION ZONING DIVISION PROGRAM MISSION To interpret, enforce, and administer the Zoning Ordinance to ensure orderly development of Arlington County in accordance with the Zoning Ordinance s legislative intent and County Board approvals. SIGNIFICANT BUDGET CHANGES Personnel increases due to the addition of a Zoning Plan Reviewer due to an anticipated increase in development activity and ancillary development activity associated with Amazon ($90,000, 1.0 FTE), employee salary increases, an increase in the County s cost for employee health insurance, and retirement contributions based on current actuarial projections. The position described above is proposed based on an assumption that the County Board will review the Performance Agreement with Amazon and approve it prior to adoption of the budget in April. Non-personnel increases due to the addition of funding for a Future Development Contingency Fund that will allow for flexibility in planning and development capacities related to Amazon ($300,000); offset by adjustments to the annual expense for maintenance and replacement of County vehicles ($5,068). Revenue increases due to an inflationary increase of 2.5 percent to all existing fees ($68,169) and an anticipated increase in development activity and ancillary development activity associated with Amazon ($1,089,928). The revenue surplus in the Inspection Services Division (ISD), specifically in Construction Permit Administration Services, is used to off-set the revenue shortfall for Zoning Division. PROGRAM FINANCIAL SUMMARY % Change Adopted Proposed 19 to 20 Personnel $2,546,060 $3,001,202 $3,178,328 6% Non-Personnel 237, , ,241 44% Total Expenditures 2,783,123 3,674,511 4,146,569 13% Fees 1,775,730 1,636,859 2,794,956 71% Utilization of Fund Balance Total Revenues 1,775,730 1,636,859 2,794,956 71% Net Revenue Support $1,007,393 $2,037,652 $1,351,613-34% Permanent FTEs Temporary FTEs Total Authorized FTEs

5 ZONING DIVISION ZONING DIVISION PERFORMANCE MEASURES Critical Measures Average wait time per customer (minutes) Number of building permits reviewed 5,481 7,260 6,731 6,489 6,750 7,250 Number of variance and use permit applications processed Number of walk-in customers served 9,911 14,302 10,704 10,155 9,800 9,400 Percentage of plans approved for final building permit within 180 days 69% 100% 100% 100% 100% 100% Supporting Measures Number of Certificates of Occupancy processed Percentage of permits reviewed as walk-throughs 1,028 1,335 1, ,250 1,365 31% 32% 37% 39% 40% 42% Average wait times increased in due to staff shortages. In and, it is anticipated wait times will decrease with a full complement of staff and an increase in online applications due to the implementation of Permit Arlington. Building permit data is anticipated to increase in and due to commercial building permit activity associated with Ballston Quarter and permit filings for VA Hospital Center and Amazon. In, staff instituted pre-application meetings with homeowners to discuss the application process. These meetings helped property owners identify by-right options that alleviated the need for appeals, which in turn decreased the number of variance and use permit applications processed. A decrease in walk-in customers is anticipated in and due to the implementation of Permit Arlington and the elimination of paper forms and applications for certain requests. Staff anticipates the biggest impact to the number of walk in customers would occur at the end of Phase II of Permit Arlington, which is not anticipated to be complete until first quarter Certificates of Occupancy are expected to increase in and following the build-out of large projects that are already underway (Ballston Quarter residential project) and those anticipated to be completed in the next year (VA Hospital Center, Amazon). The "walk-through" permit process allows an applicant to have their plan reviewed and a permit issued within one or two days. A typical "walk-through" includes mechanical changes, minor residential permits for additions, decks, sheds, and accessory structures; and commercial permits for change in tenant spaces or a build-out of tenant space. Walk-through projects are expected to continue to increase in and due to tenant buildout of recently approved office buildings, new schools, and recently approved form based code projects.

6 INSPECTION SERVICES DIVISION CONSTRUCTION PERMIT ADMINISTRATION SERVICES PROGRAM MISSION To educate, inform, and support residents, contractors, and constituents with information and support regarding permits for construction activity within the County, and to ensure the Virginia Uniform Statewide Building Code (VUSBC) requirements are met. SIGNIFICANT BUDGET CHANGES Personnel decreases due to the reduction listed below, removal of one-time salary funding for technology support associated with Permit Arlington ($225,984), and adjustments to account for savings due to staff vacancies and turnover; offset by the transfer in of three Code Enforcement positions from the CPHD General Fund ($377,307, 3.0 FTEs), and the addition of a Business Systems Analyst ($101,131, 1.0 FTE) and a Permit Processing Specialist ($75,322, 1.0 FTE). Non-personnel increases due to an increase in overhead costs related to the General Fund operational support ($170,529), operating expenses associated with the new Business Systems Analyst and Permit Processing Specialist positions ($18,500), and an increase in the rent associated with the 10th floor office space ($16,798). Revenue increases due to an inflationary increase of 2.5 percent to all existing fees ($578,459) and an anticipated increase in development activity and ancillary development activity associated with Amazon ($8,632,463). Inspection Services Division (ISD) revenues for,, and have been allocated to show full cost recovery in Construction Field Inspection Services and Construction Plan Review Services, with the remaining revenues allocated to Construction Permit Administration Services. Proposed Budget Reduction Eliminate a Deputy Building Official position ($198,829, 1.0 FTE). IMPACT: Supervision is now provided at the functional level so there is no impact. Special project work will be redistributed among staff, delayed, or postponed. PROGRAM FINANCIAL SUMMARY % Change Adopted Proposed 19 to 20 Personnel $3,147,069 $3,876,175 $3,711,348-4% Non-Personnel 5,634,841 7,960,496 8,166,323 3% Total Expenditures 8,781,910 11,836,671 11,877,671 - Fees / Other* 11,079,350 7,679,093 16,890, % Utilization of Fund Balance 6,195, % Total Revenues $11,079,350 $13,874,323 $16,890,015 22% Permanent FTEs Temporary FTEs Total Authorized FTEs * actual revenue includes a transfer in from a Trust and Agency account of $284,701.

7 INSPECTION SERVICES DIVISION CONSTRUCTION PERMIT ADMINISTRATION SERVICES PERFORMANCE MEASURES Critical Measures Number of construction permits issued 15,159 15,874 16,822 15,468 15,500 15,500 Number of customers served at the customer kiosk 28,047 24,980 28,640 25,051 23,000 21,000 Square footage of permits (millions) Supporting Measures d building value Number of inspections scheduled through the Interactive Voice Response (IVR) System Number of inspections scheduled through the website $.964 Billion $1.4 Billion $1 Billion $1.3 Billion $1.2 Billion $1.2 Billion 14,705 15,713 16,089 12,478 10,000 8,000 22,734 24,070 24,444 26,301 30,000 32,000 The number of construction permits issued per year varies due to the amount of services needed. The decrease in is based on actual construction projects and their permitting requirements. It is anticipated to stay at this level for and. The number of customers served at the kiosk increased in due to increases in the volume of construction work and the associated increase in the number of permits issued. However, beginning in the number of customers served at the customer service kiosk decreased due to the additional eplan review capabilities as implemented as part of the Permit Arlington initiative. This decrease is expected to continue in and Due to customers increased use of BuildingArlington s website, the number of inspections scheduled through the website increased, while the number of inspections scheduled through the IVR system decreased in. This trend is expected to continue in and.

8 INSPECTION SERVICES DIVISION CONSTRUCTION FIELD INSPECTION SERVICES PROGRAM MISSION To safeguard public health, safety, and welfare by enforcing State-mandated construction codes by inspecting buildings under construction. SIGNIFICANT BUDGET CHANGES Personnel increases due to the addition of a Fire Inspector ($116, FTE), employess salary increases, an increase in the County s cost for employee health insurance, and retirement contributions based on current actuarial projections. Non-personnel increases due to operating expenses associated with the new Fire Inspector ($10,500); offset by adjustments to the annual expense for maintenance and replacement of County vehicles ($2,523). Inspection Services Division (ISD) revenues for,, and have been allocated to show full cost recovery in Construction Field Inspection Services and Construction Plan Review Services, with the remaining revenues allocated to Construction Permit Administration Services. PROGRAM FINANCIAL SUMMARY % Change Adopted Proposed 19 to 20 Personnel $2,925,328 $2,894,350 $3,150,392 9% Non-Personnel 975, , ,439 3% Total Expenditures 3,901,270 3,186,812 3,450,831 8% Fees 3,901,270 3,186,812 3,450,831 8% Total Revenues $3,901,270 $3,186,812 $3,450,831 8% Permanent FTEs Temporary FTEs Total Authorized FTEs PERFORMANCE MEASURES Critical Measures Average number of daily inspections by inspector Percent of all inspections completed on the day scheduled 99% 99% 99% 99% 100% 100% Total number of inspections conducted 47,549 42,507 39,749 62,247 62,000 63,000 Supporting Measures Percent of inspections approved - residential and commercial 68% 69% 73% 95% 74% 75%

9 INSPECTION SERVICES DIVISION CONSTRUCTION FIELD INSPECTION SERVICES The average number of daily inspections by inspector varies from year to year due to several factors including the type of inspections required by the building, the building s complexity and height, the volume of construction in a given year, and the number of staff by each building trade. In, an error was identified in the way the total number of inspections conducted was being calculated. The program was not including all of the inspectors on staff. The error has been corrected and the information from and beyond is accurate.

10 INSPECTION SERVICES DIVISION CONSTRUCTION PLAN REVIEW SERVICES PROGRAM MISSION To ensure building construction documents meet adopted code requirements and support public health, safety, and welfare. SIGNIFICANT BUDGET CHANGES Personnel increases due to the addition of a Fire Protection Engineer due to an anticipated increase in development activity and ancilliary development activity associated with Amazon ($125,000, 1.0 FTE), salary adjustments, employee salary increases, an increase in the County s cost for employee health insurance, and retirement contributions based on current actuarial projections. The position described above is proposed based on an assumption that the County Board will review the Performance Agreement with Amazon and approve it prior to adoption of the budget in April. Non-personnel increases due to adjustments to the annual expense for maintenance and replacement of County vehicles ($163). Inspection Services Division revenues for,, and have been allocated to show full cost recovery in Construction Field Inspection Services and Construction Plan Review Services, with the remaining revenues allocated to Construction Permit Administration Services. PROGRAM FINANCIAL SUMMARY % Change Adopted Proposed 19 to 20 Personnel $2,421,326 $2,812,986 $3,164,645 13% Non-Personnel 48, , ,316 - Total Expenditures 2,469,835 3,024,139 3,375,961 12% Fees 2,469,835 3,024,139 3,375,961 12% Total Revenues $2,469,835 $3,024,139 $3,375,961 12% Permanent FTEs Temporary FTEs Total Authorized FTEs PERFORMANCE MEASURES Critical Measures Average number of days in ISD for first time plan review for Commercial Fast Track Average number of days in ISD for first time plan review for new commercial buildings Average number of days in ISD for first time plan review for new residential buildings Average number of days in ISD to permit issuance for Commercial Fast Track 1 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 14 14

11 INSPECTION SERVICES DIVISION CONSTRUCTION PLAN REVIEW SERVICES Critical Measures Average number of days in ISD to permit issuance for new commercial buildings Average number of days in ISD to permit issuance for new residential buildings 244 N/A N/A N/A N/A N/A N/A During and, the County implemented on-line plan review services ( eplan review ) for commercial and residential projects that require plan review before the issuance of a permit.,, and actuals are not available due to issues with the system interface between the previous system and the new system. Work has been completed to resolve the issue and will be recorded in. In, the state issued new codes for contractors and design professionals to adhere to. The average number of days in ISD to permit issuance for new residential buildings is anticipated to be higher in as the contractors and design professionals become familiar with the new codes and require multiple submissions for review.

12 TEN-YEAR HISTORY EXPENDITURE, REVENUE, AND FULL-TIME EQUIVALENT TRENDS $30,000 FTEs EXP REV Change in Fund Balance 200 $25,000 $20, $15,000 $10, $5,000 $0 50 -$5,000 -$10,000 0 $ in 000s FY 2011 FY 2012 FY 2013 FY 2014 Adopted Proposed EXP $10,566 $11,902 $11,564 $13,258 $14,376 $15,984 $17,663 $17,936 $21,722 $22,851 REV $13,387 $16,627 $14,415 $14,695 $13,990 $15,095 $16,014 $19,226 $15,527 $26,512 Change in Fund Balance $2,821 $4,725 $2,851 $1,437 -$386 -$889 -$1,649 $1,290 -$6,195 $3,661 FTEs

13 TEN-YEAR HISTORY Fiscal Year Description FTEs FY 2011 Revenue increased by $191,460, a two percent increase, due to minor fee rate increases for Zoning fees and a projection of constant and sustainable permitting activity. Transferred two Community Code Inspector positions from the General Fund Community Code Enforcement Program ($134,398) resulting in an increase of Zoning field inspectors from three to five. 2.0 FY 2012 Revenue increased based on a projected increase in permitting activity. There are no fee increases for FY FY 2013 Increased personnel costs to support the cost of a Fire Department Inspector position for site plan reviews ($103,768). The FTE for the position is in the Fire Department. Increased payment to the County that covers internal services provided by County staff ($241,900). Increased building rent for the 10th floor of Courthouse Plaza ($43,630). Revenue increases are based on a projected increase in permitting activity ($569,300). There are no fee increases in FY FY 2014 Increased personnel costs due to the addition of a Sign Coordinator position ($106,020), a Zoning Plan Reviewer position ($84,169), and a Business Systems Analyst position ($102,737). Non-personnel expenditures decreased due to the following items: reduction in consultant services ($210,000), elimination of the contingent funding ($210,000), reduction in other non-personnel costs to reflect actual spending ($167,000), partially offset by an increase in building rent for the 10 th floor of Courthouse Plaza ($130,588). Revenue decreases are based on three fee reductions: the automation fee decreases from ten to five percent ($590,920), the permitting fees for residential construction and residential additions to one-and two-family buildings decreased by $0.05 per square foot from $0.54 to $0.49 per square foot ($79,071), and the minimum permit fee and application filing fee for new construction, alteration and addition to one-and two-family residential buildings decreased by $25 from $92 per application to $57 per application ($76,950). These three fee changes also reduced the amount of indirect cost revenue ($23,404). The reduction in revenue from these fee changes is partially offset by a projected increase in permitting activity ($570,000). 3.0

14 TEN-YEAR HISTORY Fiscal Year Description FTEs Transferred a Business Systems Analyst from the CPHD General Fund ($72,110). Converted an Elevator Inspector ($106,910) as well as position reclassification savings ($43,090) to contractual services for the elevator inspection program. Increased building rent for the 10 th floor of Courthouse Plaza ($13,643). Reduced annual expense for maintenance and replacement of County vehicles ($927). 0.5 (1.0) Transferred a Business Systems Analyst from the CPHD General Fund ($72,739). Added a Plan Reviewer ($84,711), Records Technician ($74,079), and a Zoning Planner ($79,382). Added $83,000 for Zoning related expense in the Office of the County Attorney for an Assistant County Attorney. Non-personnel expenses increased for consulting expenses ($18,297) and for the ongoing costs of records management and scanning ($225,000). Revenue increased due to projected increase in permitting activity ($1,202,541). There are no fee increases for Expenses increased due to One-Stop Arlington including implementation of a new business permitting system, project management, system support, space reconfiguration, and the addition of four limited term positions ($3,986,042). Non-personnel increased for adjustments to rent costs associated with the tenth floor office space ($30,193). 4.0 Added an Associate Planner position to serve as the Assistant Counter Services Manager in Zoning Administration ($124,686). Added a Principal Planner to serve as the Zoning Administrative Supervisor in Zoning Administration ($141,730). Added positions related to One Stop Arlington including: Production Support Manager ($148,500), GIS Systems Administrator ($155,997), two Help Desk support positions for the second half of (141,730). Changes include a conversion of a limited term Assistant Permit Processing Manager position to a full-time position. Transferred a Communications Specialist II ($147,770) from the Business Operations Division to the Permits Administration Division in the Development Fund

15 TEN-YEAR HISTORY Fiscal Year Description FTEs Non-personnel decreased due to the removal of one-time costs associated with the implementation of the business permitting system as part of the One-Stop Arlington Initiative ($949,250), and adjustments to the annual expense for maintenance and replacement of County vehicles ($13,928). The decrease is partially offset by non-personnel increases for adjustments to rent costs associated with the 10 th floor office space ($63,832) and indirect costs related to General fund operational support ($62,134). Revenue increased due to the creation of a new permit type for Accessory Homestay home occupation at a rate of $60 per application ($29,452) and increased utilization of fund balance to cover projected expenses ($282,662). Transfer in of a position from the Department of Human Services for the creation of Program Manager position in the Construction Permit Administration section to support the One Stop Arlington initiative ($173,478). Addition of a Mechanical Code Inspector position in Construction Field Inspection Services ($82,954). Addition of a Permit Processing Specialist in the Inspection Services Division ($71,481). Transfer out of an Assistant Permit Administration Manager to the Department of Environmental Services ($106,037). Personnel expenses also reflect an adjustment to account for savings due to staff vacancies and turnover ($254,493). Non-personnel increased due to the increase of one-time costs associated with the implementation of the enterprise permitting system as part of the One-Stop Arlington initiative ($810,284), increases to overhead costs related to General Fund operational support ($391,087), and non-personnel funds added for the Mechanical Code Inspector and Permit Processing Specialist positions ($26,900). The increase is partially offset by adjustments to rent costs associated with the 10 th floor office space ($131,479) and adjustments to the annual expense for maintenance and replacement of County vehicles ($49,523). Revenue increased primarily due to the application of an Employment Cost Index increase of 2.5 percent to all existing fees ($309,252) and increasing the existing Automation Enhancement Surcharge from five to 10 percent based upon the successful implementation of the first phase of the One-Stop Arlington on-line permitting system ($316,983) (1.0)