Administration is working to reduce the identified projected departmental variances by incorporating appropriate mitigating measures in the departments and reporting to Council on a quarterly basis. Appendix A identifies each department’s variance, a detailed description of the variance, along with any mitigating measures.

Building Permit Reserve

Budgeted Transfer to Reserve	Projected Transfer to/(from) Reserve	Projected Year-End Operating Surplus
$0	$217,000	$217,000

Administration at this time forecasts a $217,000 operating surplus within the Building Services portion of the budget (direct costs). Staff gapping will contribute significantly to the operating surplus, due to delayed hiring of several positions and staff turnover during the year. Permit revenue estimates are based on the best information available and applications currently in process. Administration is not able to confirm whether the virus pandemic has had any material impact on permit activity, as activity has remained quite busy. However, typically larger scale projects tend to provide the majority of the permit fee revenue received and those types of projects are currently lower than observed in prior periods.

Administration makes concerted efforts to hold the line where possible on discretionary expenses within its control including delayed staff recruitments, while simultaneously navigating the challenging situation of this past year and striving to maintain a respectable and safe level of service within the community.

In addition, it should be noted that the projected operating surplus may be offset at year-end after the allocation of indirect costs upon the completion of the Annual Building Permit Reserve report, which could result in a potential draw from the reserve.

On/Off Street Parking Operations

COVID Projection	Non-COVID Projection	Overall Projection
($2,470,000)	($30,000)	($2,500,000)

The On-Off Street Parking Division is projecting an overall deficit for 2020 of ($2,500,000). The projected deficit is the net of all surpluses and deficits expected for the year related to overtime, professional and contracted services, salary gapping, equipment purchases and maintenance, miscellaneous operating supplies, transfer to reserve, and revenue from all sources.

Due to the ongoing pandemic, surplus of $30,000 is expected for staff overtime and $20,000 for professional / contracted services due to reduced usage of parking garages