A downturn in construction activity in the Town of The Blue Mountains led to a budget deficit for the building department in 2023.
At its committee of the whole meeting on April 29, council received the annual report that outlined the 2023 revenues and expenses for the building department.
Last year, the town collected $891,504 in revenues from building permits issued by the department and recorded $1,388,123 in expenses. The end result was a deficit of $512,678.
The town experienced a significant drop in construction activity in 2023 as compared to the previous year. The town issued 565 building permits in 2023, which was down significantly from the 744 permits issues in 2022.
The total value of construction in 2023 was $171,484,073, which was off from $228,741,488 the previous year.
The deficit had no impact on the town’s overall budget. The building department maintains a robust reserve fund to cover off the year-to-year ups and downs that the department experiences.
The reserve was used to offset the complete deficit for 2023, but still has a balance of $1,843,452.
Coun. Paula Hope asked town staff if the early months of 2024 are showing better results for building activity.
Tim Murawsky, the town’s manager of building services and chief building official, said things are improving.
“We have a good outlook coming up for the second half of the year,” said Murawsky. “We’re hopeful we’ll reach $1 million or more (in revenue in 2024).”
