DBI finance update: deferred credits, 7% temporary fee cut and pending fee‑study

DBI’s Chief Administrative Officer, Tyrus Madison, told the Building Inspection Commission that the department will defer publication of the final August fiscal close until Controller’s‑office reconciliations complete (the Controller allows reconciliation through Aug. 30). Madison said DBI is finalizing a deferred‑credit schedule that may total approximately $13 million and will present a final fiscal‑year 2013–14 close in September.

Madison emphasized that a temporary 7% reduction in staff‑services labor fees has been authorized; the reduction took effect administratively on Aug. 30 and will be operational the first business day in September (staff cited Sept. 2). He described the reduction as a bridge while DBI and a consultant in the Controller’s office finish a fee study that will recommend permanent fee levels. The consultant’s work is expected to return to the commission in September.

Commissioners asked about timing, the scope of the fee study and whether the temporary reduction will require additional recalculation when final fee legislation is adopted. Madison confirmed the reduction covers staff‑services labor fees, that staff will track its revenue impact in future reports, and that final fee legislation would follow the fee‑study recommendations.

Madison also reviewed permit and revenue timing: final apartment license fee revenues often post in late August, and several city departments’ billings affected DBI’s expenditure reconciliation. DBI plans to show year‑end collections, actual expenditures and the adjusted fund balance in the September closeout report.

Next steps: DBI will publish the September fiscal closeout with finalized deferred‑credit entries and present the fee study results in a subsequent meeting.