Fees collected through building permits have seen an overall decline recently, so the town department that issues them will operate with fewer staff members than usual for now, officials said Tuesday.
The New Canaan Building Department will hold open a full-time position once an inspector leaves at year’s end and a part-time worker’s hours have been reduced from 20 to 10 per week, Chief Building Official Brian Platz told members of the Board of Selectmen during their regular meeting.
First Selectman Rob Mallozzi and Platz both have seen a steady decline in the issuance of those permits that generate revenue for the town and worked together on a plan to staff accordingly.
“We certainly have not fallen off any cliffs,” Platz said during the meeting, held at Town Hall. “I don’t think there is any cause for alarm.”
Total fees collected through building permits through the first three quarters of this calendar year are down nearly 30 percent from the same period in 2015, from about $1 million to $708,000, according to Building Department data.
The revenue figures do not translate automatically into less work for those who work in the Building Department. For example, large public projects, such as the renovation of Town Hall or expansion of Saxe Middle School, do not generate any revenue through fees. Additionally, smaller-scale residential improvements such as generator installations require multiple visits from building inspectors, though they yield very little in fees compared to new home construction or larger projects. That’s why, for example, the total value of permits declined by 32 percent from fiscal year 2014 to 2016, even though the total number of permits issued increased by 21 percent in the same period.
Platz said he and Mallozzi regularly review the figures and decided that it made sense to operate with a leaner staff into the winter and reassess come spring.
“We certainly have some big projects in the works, but for example, Merritt [Village], by the time they actually put a shovel in the ground that could be six, eight, 10 months out,” Platz said.
Mallozzi noted that while the town regularly expects revenues from fees to come in at $800,000 to $900,000, the Town Council for the current fiscal year raised expectations to about $1.2 million.
“Basically I am doing this proactively because we have budget numbers that are going to be very, very hard to meet in 2016, setting the conversation for a much more realistic approach by members of town government as to what can be expected in the present-day economy,” the first selectman said. “This is a foreshadowing, because we are going to have to make adjustments.”
Here’s a quarterly breakdown of permits issued and fees collected by the Building Department in recent years:
New Canaan Building Permits, 2014-Present
| Permits Issued | Fees Collected | |||||
|---|---|---|---|---|---|---|
| Total | 2,192 | 2,112 | 1,300 | $1,344,789 | $1,479,929 | $707,692 |
| Quarter** | 2014 | 2015 | 2016 | 2014 | 2015 | 2016 |
| 1st | 516 | 462 | 386 | $285,289 | $290,532 | $104,995 |
| 2nd | 535 | 614 | 468 | $433,947 | $281,720 | $324,292 |
| 3rd | 632 | 553 | 446 | $331,198 | $431,311 | $278,405 |
| 4th | 509 | 483 | NA | $294,355 | $476,366 | NA |
**Refers to calendar year quarters, not fiscal years.
Here’s a look at the total value of residential and overall building permits issued by fiscal year, as well as the number of permits, over time:
New Canaan Building Permits, Volume and Value by Year
| Residential | Total*** | |||
|---|---|---|---|---|
| Fiscal Year | No. Permits | Value | No. Permits | Value |
| 2016 | 42 | $71,177,970 | 1,938 | $87,098,743 |
| 2015 | 28 | $43,826,762 | 1,495 | $58,465,033 |
| 2014 | 26 | $63,157,853 | 1,607 | $115,247,613 |
| 2013 | 27 | $36,709,953 | 1,319 | $55,883,471 |
| 2012 | 31 | $46,004,055 | 1,541 | $80,86,930 |
| 2011 | 117 | $33,362,750 | 1,929 | $89,681,135 |
| 2010 | 130 | $24,769,750 | 1,602 | $85,423,269 |
| 2009 | 137 | $64,058,865 | 1,492 | $131,933,118 |
| 2008 | 46 | $113,269,611 | 1,071 | $203,807,539 |
| 2007 | 61 | $116,865,977 | 1,183 | $220,733,523 |
| 2006 | 34 | $85,183,100 | 1,111 | $141,618,699 |
**Includes new construction and structural improvements.
***Includes industrial/commercial and other permits, such as over-the-counter permits for non-structural improvements.
Selectman Nick Williams asked Platz to speculate on the reason for the recent decline.
Platz responded that he didn’t know, though he added that New Canaan is experiencing something different from other lower Fairfield County towns such as Darien and Westport.
“I just wonder if maybe New Canaan has a little bit of its own real estate bubble, possibly due to inventory,” he said.
Selectman Beth Jones asked Platz how he expected to handle the winter work down a full-time person.
Platz responded that the department tends to slow down in the colder months before seeing a surge in the spring.
“When we don’t have a drop in the winter, we don’t get that surge,” he said.