Permits and inspections budget trims staff, cites rising permit revenue from large housing projects

Bill Ward, director of the department presenting Permits & Inspections, told the Board of Finance on May 28 that the department’s FY26 budget proposes eliminating a single full‑time position after a service-inventory review concluded the vacancy did not justify full-time staffing.

Ward said revenues for the division are expected to rise modestly in FY26 because of ongoing and forthcoming large projects. He noted a recent trades-permit payment tied to the former YMCA conversion — a permit fee of $362,000 for demolition and renovation to create 89 housing units — as an example of one-time but substantial receipts. “Our numbers are a little better than they looked on that,” Ward said.

Why it matters: Ward said the department is balancing modest revenue increases with a small expense reduction driven mainly by staff savings. He also noted policy changes and enforcement actions that will affect revenues: the city’s vacant-building ordinance fee will increase from $750 per quarter to $1,000 per quarter starting July 1, and enforcement may intensify in FY26 (including the possibility of criminal prosecution for vacant‑building non‑activity).

Staffing and operations: Ward described the trades division as currently operating without a division director; responsibilities are coordinated through a union-designated group leader and report to the director. He said two recently filled vacancies and an anticipated hire will restore full inspector staffing by the start of FY26, but the net headcount will be reduced by one full-time employee because the vacant position was eliminated after workflow analysis.

Revenue collection and enforcement: Ward said reinspection and stipulation fees have exceeded budgeted amounts year to date: reinspection fees were budgeted at $15,000 and were at $21,243 at the time of the report; stipulation fees budgeted at $40,000 had produced $48,000 so far, and two court judgments could add roughly $110,000 more if fully collected. He cited efforts to collect late fees and interest — noting a 12% interest provision on late filing that has driven higher receipts in FY25 — and described liens and collections as tools the department uses when properties (or owners) do not pay fees.

Discussion vs. decision: The department presented the proposed budget and defended the staffing recommendation; no formal budget vote occurred at this meeting. Ward said the vacancy elimination was the result of a service inventory and workload review.