Recommended FY 2022-2024 Operating Budget and CIP

Development Services (continued)

City's tax base, tourism as well as affordable housing preservation and development, and homelessness services and prevention.

The 2019-20 and 2021-22 fiscal years have been challenged with the COVID-19 pandemic and caused the reimagining of delivery of public services in a virtual world. The construction, hospitality and retail industries have been significantly impacted by a wide range of orders that have limited operations and systems. Similarly, the various divisions in Development Services have evolved operations and systems on-line to allow for online submittals and virtual reviews. Business recovery has been at the forefront of City Hall. A robust Business Recovery program has been implemented that has allowed for online and outdoor business functions and activation through the Al Fresco Program, the Parklet Program, Curbside Pick-Up, the Outdoor retail market -Sidewalk Saturdays, and the Buy Local Program. These programs have supported small businesses and allowed for business survival. During the Pandemic, Morgan Hill has been able to keep afloat existing and welcome new businesses. While some construction has experienced delays, Morgan Hill has witnessed a continued high demand for land development planning, building, and engineering activity as the strong housing development-oriented local economy continued. The residential development market remains vigorous in particular with SB 330 legislation that suspended the City’s ability to regulate the pace and number of housing permits through the Residential Development Control Growth System (RDCS). This legislation also requires an expedited review process. These new requirements, coupled with increased business support needs and unprecedented number of applications (with a significant increase in home remodels), is challenging the desired review timelines and normal processing timeframes.

Functional Responsibility

• Building

• Housing - Affordable Housing and Homelessness

• Code Compliance

• Planning - Current and Long Range

• Economic Development

Financial Comments

Included in this budget are salary adjustments and/or reclassifications of certain positions to address retention and recruitment issues that have been impacting the City.

264 DEVELOPMENT SERVICES