Presenter/Contact
Presenter
TJ Grossi, Building Official
Contact Info
(830) 221-4062 - tgrossi@nbtexas.org
Subject Header
SUBJECT:
Title
Approval of the first reading of an ordinance amending Appendix D-Fee Schedule in the City’s Code of Ordinances to authorize the rounding down the total of fees owed to the nearest whole dollar amount.
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BACKGROUND / RATIONALE:
In May of 2018 the City of New Braunfels adopted new development-related fees, some of which are based on percentages. Most of the fees are flat, however due to the aforementioned percentage calculations, some payments do not end in whole dollar amounts. This does not present an issue to larger developments or permits which are mostly paid by check or credit card. However, residents who apply for smaller permits, such as for fences, decks, water heaters, etc. often pay with cash due to the much smaller amounts. Additionally, many of those same customers who pay with cash do not routinely carry change.
If a permit fee totals something other than a whole dollar amount, for example: $26.17, it requires the City to provide change back. The City’s efforts overall are to speed up processes, particularly in the permitting and plan review function. Providing change is an additional step that decelerates the process both over the counter and when preparing daily cash reports. Removing change from the department’s cash drawer and daily cash report would create more efficient, streamlined and speedy transactions with external customers, as well as with the Finance Department.
The City’s permit software, CityWorks, generates the fees and invoices. It has the ability to round fees down to the nearest dollar.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
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City Plan/Council Priority: Strategic Issues Envision New Braunfels Comprehensive Plan |
Continuous evaluation of efficiencies: Create a more efficient process for costumers and City Staff who handle cash. Action 3.6: Pro-actively provide a regulatory environment that remains business and resident friendly. |
FISCAL IMPACT:
Staff calculated the fiscal impact for December 2018 and January 2019 (see Attachment 1). In December, the department processed approximately 2,500 fees, collecting $609,739.48. Rounding down would have resulted in a net loss of $104.48; January’s numbers were similar: rounding down would have resulted in a loss of $143.57. An estimated impact of less than $2,000 per year. This is a small dollar impact to the overall budget but that would result in better efficiencies for external and internal customers.
Recommendation
COMMITTEE RECOMMENDATION:
N/A
STAFF RECOMMENDATION:
Staff recommends approval.