This building permit density map shows the highest number of applications in 2017 in red (Image: Town of Huntsville)
This building permit density map shows the highest number of applications in 2017 in red (Image: Town of Huntsville)

Building permit applications up 25 per cent in 2017, $302K surplus to be placed in reserve fund

The Town of Huntsville received 835 building permit applications in 2017, a marked increase over the 633 it received in 2016.

A staff report presented at the March 28 General Committee meeting noted that of those applications, 772 permits were issued including those for the construction of 166 new permanent and seasonal dwellings.

Here’s how 2017 broke down by the numbers, according to the staff report:

$78,903,193 = Total construction project value of the building permit applications in 2017, down $1.6 million from 2016, but slightly more than double the 2015 value of $39,229,320.
Five = Building projects exceeding $1,000,000 in value, including the new Armstrong Dodge automotive dealership in Commerce Park, two private residences, a new commercial building, and interior alterations to the building located at 3 Crescent Road. A further 17 projects each had a value of between $500,000-900,000 and 190 projects had values between $100,000-500,000.
$828,633 = Building permit revenue, an increase of $180,054 over 2016 revenues.
$599,924 = Cost to run the Town’s building permit program, including $425,735 in salaries, wages and benefits.
$798,905 = Balance in the Building Permit Program Stabilization Reserve Fund, as of December 31, 2017.

The building permit program is designed to be self-sustaining so that costs associated with administration and enforcement of the Building Code Act are not included in the municipal tax levy, according to the staff report, and legislation enacted in 2006 requires any surplus to be transferred into a Building Permit Program Stabilization Reserve Fund.

The reserve fund “may only be used to support the building permit program during periods of economic decline, or with funding one-time capital requirements to avoid fluctuations in fees,” noted the report. “Most municipalities target the reserve to include a minimum of 1.5 to 3 times the annual operating budget.”

Huntsville’s building department is aiming for a reserve fund equivalent to two years of direct and indirect department expenses, plus the cost to purchase or develop software for an online building permit application and tracking process. The staff report estimated the needed reserve fund at $1,700,000.

Mayor Scott Aitchison noted that he is “pleased to see fund can be used for (technology) because I think you [the building department] are going to actually lead the way in this organization in how we can change our interaction with the public through online systems and computers. I am excited to see what you come up with, how we streamline the process, making it even better, show that we are open for business, and maybe demonstrate how the rest of this organization can make e-commerce available to the citizens of Huntsville.”

Read the full Building Permit Program staff report here.

The building department will be hosting a Express Permit Extravaganza on May 5 to help speed the process for residents applying for permits for small projects.

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