2:00 P.M. - Presentation of Update on Community Development Department (CDD) Loan Repayment Plan

Summary

This item is a presentation on the Community Development Department's (CDD) loan repayment plan. The attached documents outline potential repayment options for a loan, with options to repay over 1, 2, or 3 years. Repaying over 1 year would require approximately $390,000 by June 30, 2026, necessitating staff reductions. A 2-year repayment would involve $195,000 annually for two years, also requiring staff reductions and cost recovery analysis. A 3-year plan would be $130,000 annually for three years, involving staff reduction, cost recovery, and reorganization analysis. The documents also detail Memorandum of Understanding (MOU) increases across divisions totaling $264,804.80 as of July 1, 2025, affecting the Building, Code Enforcement, and Planning divisions. Staff recommendations for managing these financial obligations include reducing staff, exploring lateral transfers to other departments, incorporating MOU increases and unfunded mandates into the Master Fee Schedule, creating a more conservative budget, and restructuring positions.

Citizen Impact

Residents may experience impacts from potential staff reductions within the Community Development Department, which could affect service delivery times for permits, inspections, and planning services. The city is also considering how to incorporate increased personnel costs into fee schedules, which could lead to higher fees for certain services.

Confidence

high