can and do occur which translate into more tasks being required of Building Code Enforcement Staff and consequently more staff time needed on projects. The volume of permits issued in 2019 (3,301) was less than 2018 (4,501) but the total construction value (and in many cases project complexity) was 46% higher in 2019 than that of 2018.
Additional Points of Information
Building Services has no control over the local economy nor a precise forecast of how the economy will trend. There does exist, however, signs of a positive trend and general optimism among the local community. Planning projections suggest that current economic growth will continue for some time with hopefully much of the development activity being represented by infilling as opposed to only perimeter expansion.
The department is nearing the end of its implementation of the EVOLVE digital permitting system. This will help streamline service delivery to the development community and add efficiencies.
Risk Analysis:
There are no legal/risk management impediments to approving the recommendation in this report. Subsection 7(4) of the Building Code Act requires the municipality to prepare an annual report respecting building permit related fees. Factors affecting and options for remedying the Reserve balance are noted throughout the report.
Financial Matters:
The budgeted operating draw on Reserve for 2019 was $807,388. Due to exceptionally favourable operating results, the department was able to make a contribution to the Reserve in the amount of $805,485. This amount includes one time recoveries totalling $325,000 combined from staff working on the EVOLVE project and staff gapping that occurred during the year. The table below shows historical operating (draws)/ contributions against the Reserve since 2012.
History of Building Permit Fee Reserve Operating (Draws)/Contributions
| Year | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|---|---|
| Draw | ($427,828) | ($964,907) | ($512,509) | $145,774 | $79,266 | $430,259 | ($127,148) | $805,485 |
The balance in the Building Permit Fee Reserve at December 31, 2019 was approximately ($9.6 million) deficit. City Council previously approved the establishment of a placeholder reserve (Building Permit Fee Reserve Contra Account) to offset the deficit. The Contra Account had a December 31, 2019 balance of $10.3 million.
Construction Statistics
Appendix B (Historical Construction Values) provides some construction statistics from the past decade recorded by Building Services. During that time, institutional construction represented the largest contributor to permit revenues collected. In contrast, the previous decade was when we saw much of the revenue coming from residential construction type projects.