HomeMy WebLinkAboutBuilding Inspection Third Quarter Report.pdfPage | 1
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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Bob Risk, Chief Building Official
Jason Shrauger, Fire Chief
Chuck Winn, Assistant City Manager
SUBJECT: Building Inspection 3rd Quarter FY10 Update
January 1 – March 31, 2010
MEETING DATE: April 26, 2010
AGENDA ITEM TYPE: Action
RECOMMENDATION: Accept this report detailing the financial and workload position of
the Building Inspection Division for the quarter ending March 31, 2009.
BACKGROUND: Because of the difficulties with estimating Building Inspection revenues
and workloads, we committed to make quarterly reports regarding revenues, staffing levels and
operating costs within the department.
The FY10 Budget was balanced with the following assumptions:
A. REVENUES: Without an increase in current fees, we estimated receiving approximately
$71,000/month. This estimate was based on average monthly building permit activity during
FY2009 and equals our estimated monthly expenditures for FY10.
Last fiscal year, the average monthly revenue was $73,000 with actual monthly revenues
ranging between $108,000 and $28,000. For this fiscal year, the monthly average for the first
three quarters was $50,200.
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Customarily, the 2nd and 3rd quarters of the fiscal year are the lowest revenue producing
months in the Division. The total revenue for the 3rd quarter of FY10 was $139,100.
Third Quarter Monthly Revenues
January $44,000
February $45,300
March $49,800
Average Monthly Revenues: $46,400
B. EXPENDITURES: Our monthly expenditures averaged $59,270 for the 3rd Quarter.
Our total expenditures for the 3rd Quarter of FY10 were $177,820.
Third Quarter Expenditures
January $62,400
February $57,750
March $57,670
Average Monthly Expenditures: $59,270
Now that we are three quarters through the fiscal year our total revenue stands at $452,000
which is $187,000 short of our estimated revenue amount of $639,000, and our total
expenditure amount equals $547,520 which is $91,480 less than our original expenditure
estimate of $639,000.
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Building Division Revenue/Expenditure Comparison- Fiscal Year 2010
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Revenues
Expenditures
At this time, we calculate that our actual monthly expenditures will average approximately
$68,000 per month at the end of the year which is about $3000 per month less than our
original estimate. This monthly saving is primarily due to the entire building division staff
being very conservative when considering and implementing all budgeted building division
spending.
A. CASH RESERVE: The Administrative rules of Montana allow the building division to
maintain a “cash reserve fund” derived from building permit fees provided that the reserve
amount does not exceed the building division operating costs for a 12 month period. Our
original Estimate of the building division operating costs for FY10 was $852,000. During
this fiscal year, due to careful planning and very conservative spending, the building division
has been able to reduce those original estimated costs and has revised our estimated operating
cost for this year to $816.000.
At the beginning of the 3rd quarter the Building Inspection Fund Cash Reserve was $566,819.
At the end of the 3rd Quarter the cash reserve balance was $528,872, a drop of $37,947. This
reserve balance represents 62% of our original estimated division operating cost ($852,000)
and 65% of our revised estimated operating costs ($816,000) for FY10.
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The 3rd quarter of this fiscal year saw Reserve declines similar to the 2nd quarter which
averaged $22,500/month. However, we still anticipate that the 4th quarter revenues from
spring building activity will cover the current division costs for that quarter.
During the FY09 budget development, the Commission was not in support of raising
Building Division fees until the Fund’s reserve level hit 50% of annual expenditures. Last
spring, as we were nearing that level in the FY09 budget, we brought the issue of a Building
Division fee increase to the Commission. At that time they declined to raise fees.
B. BUILDING PERMIT NUMBERS: The total number of new permits for the 3rd Quarter
FY10 was 622 which is up 68 permits from the same period last year.
FY09 Quarterly Permit Totals with FY Quarterly Averages
Permit Type July,
August,
September
October,
November,
December
January,
February,
March
April,
May,
June
Quarterly
Averages
Building 358 298 184 419 314.75
Plan Check 205 141 101 183 157.5
Electrical 181 141 99 125 136.5
Plumb/Mech 259 148 146 158 177.75
Fire Systems 19 21 17 17 18.5
Moving 3 0 0 1 1
Demolition 8 3 7 10 7
Total Permits 1033 752 554 913 813
Permit and
Inspection
Staffing
Level
12 11 8 7
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FY10 Quarterly Permit Totals with Quarterly Averages to Date
Permit Type July,
August,
September
October,
November,
December
January,
February,
March
April,
May,
June
Averages
To Date-
Building 450 191 176 272
Plan Check 183 125 139 149
Electrical 157 93 123 124
Plumb/Mech 175 184 145 168
Fire Systems 20 19 14 18
Moving 0 0 0 0
Demolition 4 7 6 6
Total Permits 989 619 622 743
Permit and
Inspection
Staffing
Level
7 7 7
C. INSPECTION WORKLOAD: “Inspections per Inspector Day” has historically been used to
measure the workload of building inspectors. The accepted standard for inspections per
inspector day is 15.
Fiscal Year 2010 – 3rd QTR
Inspections/Inspector Day
Standard 15
January 12.83
February
March
12.48
12.02
3rd QTR average inspections per day 12.44
To date for FY10, the average number of inspections per day for each inspector was 16.93.
In addition to the daily inspection workload, the field inspection staff have used our traditionally
slower 3rd quarter to take advantage of state required continuing education and in house cross
training. It is important to note that all of the building division staff is required by the state to
participate in continuing education classes and that this training takes place in the slower winter
months whenever possible.
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STAFFING PLAN: At this time, the Building Division staff consists of the Chief Building
Official, 2 Plans Examiners, 3 Building Inspectors, 1 Code Compliance Officer, and 1 Permit
Coordinator.
Commercial fire plan review and commercial fire inspections are completed by the Fire
Marshal/Deputy Chief/Inspections whose salary and benefits come from the general fund/Fire
Department budget.
The City of Bozeman Fire Chief serves as the Department Head for the Building Division.
Currently, 25% of the Fire Chief’s salary and benefits come from the Building Division budget.
With our current and projected workload, the Building Division is currently at the minimum
staffing level needed to provide the minimum services mandated by the Administrative Code of
Montana, City of Bozeman Ordinances, the International Building Code and Current Building
Division Policies.
UNRESOLVED ISSUES: None.
ALTERNATIVES: As suggested by the City Commission.
FISCAL EFFECTS: Our revenues for the 3rd Quarter FY10 averaged $46,400/month while our
actual monthly expenditures for the quarter averaged $59,270/month.
The Building Division Reserve Fund balance at the end of the 3rd Quarter was $528,872 which
represents 65% of our revised estimated operating costs for the year.
Attachments: None
Report Compiled On: April 9, 2010
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