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DBI reports about $18M net surplus for FY2013–14 after deferred revenue adjustments; hiring and temporary fee cut discussed
Summary
Deputy Director Taris Madison told commissioners DBI ended FY2013–14 with roughly $26–$28 million on hand but, after deferred‑revenue adjustments, about an $18 million net surplus; department highlighted revenue overperformance on plan‑review fees and described an aggressive hiring push and a temporary 7% fee reduction effective Sept. 2.
Deputy Director Taris Madison presented the Department of Building Inspection’s FY2013–14 year‑end financial report to the commission on Sept. 17, saying the department’s recorded balance was roughly $26–$28 million but that deferred‑revenue movements lowered the net surplus to about $18 million.
Madison said DBI collected roughly $22 million more in revenues than budgeted, with particularly strong plan‑review (plan checking) revenue — about $12 million over budget — driven in part by several very large projects ("one project actually was $336,000,000," she said). Building permit revenue came in about $3 million over budget and electrical permits about $1 million over.
She described deferred credit accounting items (projects that capture revenue across multiple fiscal years) that reduced the net surplus by roughly $4.4 million, and said some projects recorded to deferred accounts in prior years were completed and shifted back into FY2013–14, producing a net effect described in the report. On expenditures, Madison said DBI showed about $8 million in savings, roughly half attributed to salary savings from vacancies.
The commission asked why plan‑review revenues exceeded projections. Madison and Director Huey attributed the increase to both higher valuation on large projects and process efficiencies including the one‑stop permit counter. Madison said DBI has started an aggressive hiring program and has filled 17 permanent positions since July to reduce backlog and staffing‑related delays.
On FY2014–15, Madison said a temporary 7% fee reduction took effect Sept. 2 and will run for about six months while a Controller‑managed fee study (with consultant MGT Incorporated) is completed; staff expects fee study recommendations to come to the commission in October. Madison said July–August figures were unreliable for projecting FY2014–15 because the anticipated fee reduction slowed activity in August.
Commissioners requested a clearer timeline for converting temporary/Prop F employees to permanent appointments and for public messaging on the fee study and upcoming permit‑tracking portal.
