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Council weighs counting higher permit revenue to offset rising inspection costs
Summary
Staff and council debated whether to increase budgeted building-permit revenue (proposal to raise conservative estimate from $15,000 to $25,000) to better match recent actuals and help offset rising building-inspection costs.
Councilors reviewed building-permit revenue trends and the relationship between permit receipts and inspection expenses. Staff said the three-year permanent permit revenue averaged about $75,000 and that year-to-date receipts were already at about $77,000; staff proposed increasing the conservative budget assumption for building permits from $15,000 to $25,000.
Council and staff discussed the point that permit revenue varies with housing valuation and that inspections have risen in recent months. "That was the idea with those building inspection costs then that our permit revenue would offset them," one committee member said, and members considered whether to align permit revenue assumptions with the higher inspection projections. The council directed staff to monitor the variance and to bring updated revenue/inspection alignment to the next budget meeting.
