A big first-year surplus from its building inspection program has allowed Armstrong to create a reserve for future use.
One full fiscal year has passed since the city took over building inspection services from the Regional District of North Okanagan.
Outwest Building Inspection provided services to the city for most of 2016 on a two-day-per-week basis, increasing the services to three days per week in December.
City permit revenue for the year, along with a pair of one-time refunds from RDNO, minus slightly more than $68,000 in expenses, leaves the city with a surplus of $175, 368.
“The high surplus is partially due to the one-time refunds,” said city chief financial officer Terry Martens. “Expenses for 2017 with the expanded scope of service is expected to be approximately $98,000.
“If building activity continues to be robust in 2017, a small surplus is expected.”
Staff received unanimous council approval to establish a building inspection operating reserve to which building inspection surpluses would be transferred in order to fund future operating deficits (though Coun. Gary Froats was absent from the regular council meeting).
The 2016 surplus will be transferred to the new reserve.
“This was a new program we initiated and I want to thank two staff members, Sarah Heward (finance clerk) and Terry (Martens) for keeping it in order,” said Mayor Chris Pieper.
“Outwest Building Inspections worked really well with our staff in a transition year, and to have a good first year sets us up well for the future.”
