community planning, housing and development...community planning, housing and development. ......

COUNTY MANAGER’S PROPOSED FY 2020 BUDGET

County Board Work Session

Community Planning, Housing and Development

March 5, 2019 @ 3:00 p.m.

To promote the improvement, conservation, and revitalization of Arlington’s physical and social environment.

Department Overview The Department is made up of 6

functional areas: Business Operations Planning Neighborhood Services Housing Zoning Inspection Services

2Community Planning, Housing and Development

Department Overview

3

2018 CPHD Highlights• 589 affordable housing units committed• 7 site plans approved, including VHC• $7.5 million in NC projects in 8

neighborhoods• 10.5 million s.f. of construction permitted

and inspected• 854 Certificates of Occupancy issued• Ballston Quarter implementation• Schools implementation• 4MRV Area Plan adopted

Community Planning, Housing and Development

Department Overview Four funding sources:

General Fund Housing and Community Development Fund Development Fund Non-Departmental/AHIF

4Community Planning, Housing and Development



General Fund

March 5, 2019 @ 3:00 p.m.County Board Work Session

Summary of Proposed Budget Changes

FY 2019Adopted

FY 2020Proposed Change

%Change

Expenses $11,430,510 $11,703,260 +$272,750 +2.4%Revenue $1,288,000 $2,356,764 +$1,068,764 +83.0%Staff 83.5 FTEs 82.0 FTEs -1.5 FTEs -1.8%*

6

• Increase in FY 2020 revenue includes new fees associated with GLUP studies and conceptual site plan reviews, an inflationary increase to all existing fees, and an increase in projected development.

• FY 2020 staffing reflects a combination of moving 3 existing Code Enforcement positions into the Development Fund and adding 1.5 new Planner positions into the General Fund, resulting in 1.5 fewer positions overall in FY20.

* Position changes discussed in subsequent slides.

General Fund

Summary of Proposed Budget ChangesFY 2019Adopted

FY 2020Proposed

BudgetImpact

StaffImpact

GLUP Study Fees - $75,101 +$75,101 -

Conceptual Plan Review Fee - $29,000 +$29,000 -

Add Principal Planners for Planning and Housing (Projected Development and Amazon)

- $225,000 +$225,000 +1.5 FTEs

Single Family Loan Servicing - $35,090 +$35,090 -

Support for the 2020 Census - $100,000 (one-time)

+$100,000 -

7General Fund

Detail: Proposed Reductions

8

Eliminate Consultant Services for Training Program

Service Impacts Budget Impact

• Eliminates consultant services for training program

• Will stagger its training over multiple fiscal years and find an alternative way to deliver certain content.

FY 2019: $11,850

FY 2020: -

Change: -$11,850

General Fund


9

Transfer of Code Enforcement Positions to Development Fund


• No impact to service delivery.

• Transfers one Construction Codes Manager (1.0 FTE) and two Community Codes Supervisors (2.0 FTEs) from the General Fund to the Development Fund.

• Costs associated with transfer into the Development Fund are offset by the elimination of the ISD Deputy Building Official position and revenue increases.

Change: -$377,307

Staff Impact-1.0 Construction Codes Manager (filled)

-2.0 Community Codes Supervisors (filled)

General Fund


10

Reduce Historic Preservation Consultant Services


• Decrease consultant services funding for the Historic Preservation program.

• May slightly delay the completion of Historic Preservation projects and activities.

• Evaluating alternative methods of delivering services.

FY 2019: $60,000

FY 2020: $51,836

Change: -$8,164

General Fund

Key Budget Considerations• Primary focus of reductions was on efficiencies, redundancies, and

alternative ways of service delivery with emphasis on discretionary activities and services.

• Longer-term issues include an overall increase in development (enhanced by Amazon) and impacts to housing options (Affordable and Missing Middle).

• Staying the course on CPHD’s strategic priorities (technology, customer service, employee development, program effectiveness and communication) in light of work demands.

11General Fund



Housing and Community Development Fund



FY 2019Adopted


%Change

Expenses $1,992,088 $3,084,312 +$1,092,224 +54.8%Revenue $1,992,088 $3,084,312 +$1,092,224 +54.8%Staff 4.5 FTEs 4.5 FTEs - -

13

• FY 2020 Proposed includes program income estimates ($350,000 for CDBG and $340,000 for HOME).

Housing and Community Development Fund

Key Budget Considerations• While funding projections are stable for FY 2020, the future of federal

budgets remains uncertain

• Staff is exploring several long-term strategies to fill the gap if federal funding is reduced:

- Streamlining grants administration- Developing opportunities for programs or projects that generate more program

income- Supporting programs with General Funds when feasible

14Housing and Community Development Fund



Development Fund



FY 2019Adopted


%Change

Expenses $21,722,133 $22,851,032 +$1,128,899 +5.2%Revenue $21,722,133 $26,511,763 +$4,789,630 +22.0%Staff 106.0 FTEs 113.0 FTEs +7.0 FTEs +6.6%

16

• FY 2020 expenses reflects the addition of the Future Development Contingency Fund that will allow for flexibility in planning and development capacities related to Amazon ($300k).

• FY 2020 revenue reflects an inflationary increase of 2.5 percent to all existing fees, projected increase in development activity, and development associated with Amazon.

• FY 2020 staffing reflects the addition of two positions associated with the increase in development activity associated with Amazon ($215,000 , 2.0 FTEs) , three positions to assist with current workload needs ($293,349 , 3.0 FTEs) and the transfer in of the three Code Enforcement positions from the General Fund ($377,307, 3.0 FTEs)

Development Fund


FY 2020Proposed

BudgetImpact

StaffImpact

Increase in projected development activity

$15,209,920 $25,548,153 +$10,338,233 -

Increase all fees 2.5% (Inflationary Indicator)

$316,983 $963,610 +$646,627 -

Add a Zoning Plan Reviewer (Projected Development and Amazon)

- $90,000 +$90,000 +1.0 FTE

Add a Fire Protection Engineer (Projected Development and Amazon)

- $125,000 +$125,000 +1.0 FTE

17Development Fund


FY 2020Proposed

BudgetImpact

StaffImpact

Transfer of Code Enforcement Positions

- $377,307 +$377,307 +3.0 FTEs

Add a Business Systems Analyst

- $101,131 +$101,131 +1.0 FTE

Add a Permit Processing Specialist

- $75,322 +$75,322 +1.0 FTE

Add a Fire Inspector - $116,896 +$116,896 +1.0 FTE

Future Development Contingency Fund

- $300,000 +$300,000 -

18Development Fund


19

Eliminate Deputy Building Official Position


• Special project work will be redistributed among staff, delayed, or postponed.

• Supervision is now provided at a functional level.

Change: -$198,829

Staff Impact-1.0 Deputy Building Official (filled)

Development Fund

Department Overview

20Development Fund(Fund 570)

March 2018•Restart system

development•ePlan online

payment deploys

Winter 2019•Consolidated

permit counter opens on 10th floor (Feb 19)

•System testing begins with public

Spring/Summer 2019 •Phase I

implementation•33 permit types

2020•Phase II

implementation•40 permit types

Permit ArlingtonA County-wide initiative to improve land development, building and permitting processes • Program Goals

o Streamline business processeso Enhance technology and communication toolso Deliver excellent customer serviceo Increase transparency and accountability

• Customer Experience Vision One team, one voice, delivering a responsive permitting experience driven by understanding and listening to our customer needs

o Centralized customer service seamlessly integrated with an intuitive online user experience

o A knowledgeable and friendly team providing consistent information

o Convenient and transparent from start to finish

Key Budget Considerations• Evaluate the long term stability of the Fund through a comprehensive fee

study

• Development pipeline increases effect on staff

• Permit Arlington

21Development Fund



Non-Departmental/AHIF


AHIF Program Overview

Non-Departmental/AHIF 23

• County is a mission-driven lender• Goal is to create and preserve committed affordable units (CAFs)

affordable to families earning 40%-60% of the area median income (AMI) for 60 years

• AHIF is used for residual receipt / cash flow loans• $123 million in loan repayments received to-date • 41% of loans have paid in full

• County Board has approved over 100 loans• $357 million allocated to-date, supporting approximately 7,000 CAFs

AHIF as an Affordable Housing Tool


• AHIF is the primary source of funding for CAFs in Arlington

• CAFs are also created through site plan and form-based code5,938

6,233 6,525 6,578

6,885 7,254

7,463 7,729

8,122 8,431

8,740

4,755 4,866 5,072

5,353 5,429 5,723

6,032

6,602

7,117 7,426

7,735

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

9,000

FY '10 FY '11 FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 FY '20

# of

CAF

s

Total # of CAFs

AHIF financed CAFs

AHIF Secures CAFs and Leverages Funds


368 CAFs

451 CAFs

585CAFs

497 CAFs

173CAFs

433CAFs

• AHIF preserves existing CAFs by extending affordability

• AHIF creates new CAFs through acquisition and construction of units

• Every $1 million in AHIF can preserve or create approximately 12 CAFs and leverage $4 million in outside funding

380 CAFs

0

100

200

300

400

500

600

700

FY14 FY15 FY16 FY17 FY18 FY19 -Projected

FY20 -Projected

Existing CAFs Preserved New CAFs Financed

AHIF Provides Options to Low-Income Families


• As the overall number of market rate affordable units (MARKs) declines, Housing Grants participants and other low-income families have fewer housing options

• CAFs funded with AHIF provide a supply of units for these families and help fill the gap

0

2

4

6

8

10

12

14

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Thou

sand

s

CAFs Filling The Gap

Total CAFs at or below 60% AMI MARKS at or below 60% AMI Units Affordable at or below 60% AMI

AHIF Appropriation History


• The County Board appropriated more than $80 million to AHIF between FY 2014 and FY 2019

• The County Manager is proposing an increase in ongoing funds in FY 2020 (ongoing funds would be 60% of total)

• Goal is to eventually fund 100% of AHIF with ongoing funds

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

FY 2014Adopted

FY 2015Adopted

FY 2016Adopted

FY 2017Adopted

FY 2018Adopted

FY 2019Adopted

FY 2020Proposed

$6,755,716

$4,755,716 $4,256,017 $4,355,957 $4,905,406 $6,694,158

$8,744,186

$5,724,907 $8,200,000

$8,200,000 $9,363,829

$10,111,006 $7,645,256

5,733,942

On-going One-time

266 CAFs affordable for

60 years

Projected FY 2020 Funding Sources - $22,590,048


$88 million in outside funds

$6,694,158

$3,500,000

$341,202

AHIF - ongoing funds39%

AHIF - one-time funds25%

Federal CDBG Entitlement

2%

Loan Repayments &

Payoffs19%

Developer Contributions

15%

Housing Affordability Needs Are Intensifying


• Pressures on existing housing stock continue• As population growth occurs, demand will increase for

existing housing stock, putting pressure on current affordability

• Options available to households at or below 60% of AMI have declined since 2010

County Efforts to Support Housing Affordability


• Commitment to provide existing programs, such as AHIF and Housing Grants, with General Fund support

• Expanded efforts to explore housing program options and identify ways to further leverage County funds for housing

• CM recommendation to increase Housing Division capacity with an additional FTE

community planning, housing and development...community planning, housing and development. ......

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