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Council approves budget amendment to allocate excess inspections revenue for underground utilities, code enforcement and software
Summary
Following an unusual surge in permitting revenue from major commercial projects, the council approved a FY25/26 budget amendment allocating approximately $738,551 in additional inspections revenue toward undergrounding utilities, electrical relocation, code‑enforcement legal/demolition costs and new inspection software.
City inspections officials told the council that unusually high permitting revenue this fiscal year — driven by major projects including a Walmart distribution center, Target, a new hotel and Duke Health center projects — left the inspections department with approximately $738,551 more in revenue than originally budgeted.
Cliff Askew, inspections director, outlined proposed uses: undergrounding Duke Energy lines on Wilson Street (estimated $175,326), relocating electrical service ($29,455), legal fees and demolition tied to minimum-housing enforcement ($about $58,700 combined), new inspection software ($65,125), closing and appraisal costs associated with the 202 South 5th purchase and related code‑compliance work. Askew said many of these projects respond to specific commercial permits that came in this fiscal year.
A council member confirmed these permit-driven revenues are permissible to use for inspection-related expenses under state law that limits permitting fees to cost recovery. Council approved the FY25/26 budget ordinance amendment by voice vote.
