Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Building Inspection Commission adopts conservative budget projection amid revenue shortfall concerns
Summary
Facing a projected fall in permit‑related revenues, the commission adopted the most conservative revenue and expenditure scenario for FY 2007–08 and instructed staff to revisit projections and hiring levels as actual receipts and planning‑pipeline projects become clearer.
The Building Inspection Commission voted Feb. 12 to adopt the most conservative revenue and expenditure scenario proposed for the Department of Building Inspectionbudget for fiscal year 2007–08, citing a decline in revenue driven by fewer large projects and uncertainty about upcoming receipts.
Taris Madison, chief administrative officer, presented revenue history and three projection scenarios. Madison told the commission the departmentnormally relies on two primary revenue streams — building permits and plan‑checking fees — that together comprise roughly 55 percent of DBI receipts. Madison offered a range of expected permit revenue between about $14 million (worst case) and $17.7 million (better case) depending on whether large, high‑valuation projects come through the planning pipeline.
Madison also said expenditures in the proposed budget total roughly $47.6 million and that, depending on assumptions, the department would need roughly $5 million to $8 million (and in a worst case up to about $8–10 million) to balance the budget. The departmenthas a fund balance (reserve) of roughly $8 million that Madison estimated could grow toward about $10 million because of salary savings in the current year; staff recommended a conservative revenue assumption with a mid‑range staffing contingency (hiring new positions at partial FTE) to limit ongoing commitments.
Commissioners raised detailed questions about a projected rent and work‑order increase tied to city‑wide real estate charges for DBI space at 1650 and 1660 Mission. Madison explained a citywide formula (approximately $1.99 per square foot) is being applied and said DBI would pay for additional floors and operating costs previously covered by a permit surcharge; those changes could add roughly $1 million in rent/work‑order charges in the department's budget, depending on final Real Estate allocations.
A number of commissioners and staff discussed options to bolster revenue without raising permanent fees: pursuing grants (including UASI for seismic work), promoting small‑project permitting, streamlining processes to reduce the perception that the city is hostile to modest developers, and moving some hires to half FTE or delaying start dates. Madison also flagged a multi‑year PTIS (permit tracking) project that requires a $2 million carryforward plus an additional estimated $6–7 million over the next three years.
Following discussion, a commissioner moved to adopt the most conservative scenario for both revenue and expenditures; the motion was seconded and the commission recorded an affirmative vote. The transcript records the motion and an "Aye" vote; the meeting did not include a roll‑call tally for individual names in the public exchange.
The commission directed staff to continue monitoring the planning pipeline, give legal clarification on rent/work‑order charges, and bring a formal budget recommendation and any adjustments to the March meeting.
