For the second straight year the City of Vernon is forecasting a significant surplus in building permit revenue.At its current pace, 
permit revenue is expected to top $1.4 million by the end of this year, giving the city a more than $400,000 surplus.“It’s nice to be in a surplus position,” said city finance manager Rob Mayne. “That would be an indication that the building department was pretty busy this year.”The surplus gives the city extra pocket money to invest in improving roads and sewers, or to insert into the 2007 operating budget to reduce the expected 2.84 per cent property tax increase.In 2005, the city had expected $550,000 in permit revenue but hauled in $1.2 million. 
Mayne said it is common for cities to have a conservative estimate for building permit revenue.“It’s not something you can rely on year over year,” he said. “If you look at (construction) internationally there is some indication in the U.S. and in some parts of Canada things may be slowing down somewhat.”In the past, council has set some money aside in reserve for years when permit revenue decreases. Mayne said it’s always good financial practice to have money in reserve in case the construction bubble bursts.“When you can absorb reductions over time it’s certainly a good thing to do,” he said. “You can’t predict these kind of things.”Building permit revenue is one of the city’s main sources of revenue outside of taxation, and overestimating the revenue source could have disastrous effects on the city budget. Mayne said relying too much on permit revenue could mean the city would run short of money to pay for the costs of running the city.“You wouldn’t want to be in a position where you’re over budget and you have a huge shortfall,” he said.Mayne said that the finance department is recommending that council increase slightly the forecasted permit revenue for next year, expecting that construction in Vernon will stay near its current pace.
permit revenue is expected to top $1.4 million by the end of this year, giving the city a more than $400,000 surplus.“It’s nice to be in a surplus position,” said city finance manager Rob Mayne. “That would be an indication that the building department was pretty busy this year.”The surplus gives the city extra pocket money to invest in improving roads and sewers, or to insert into the 2007 operating budget to reduce the expected 2.84 per cent property tax increase.In 2005, the city had expected $550,000 in permit revenue but hauled in $1.2 million. 
Mayne said it is common for cities to have a conservative estimate for building permit revenue.“It’s not something you can rely on year over year,” he said. “If you look at (construction) internationally there is some indication in the U.S. and in some parts of Canada things may be slowing down somewhat.”In the past, council has set some money aside in reserve for years when permit revenue decreases. Mayne said it’s always good financial practice to have money in reserve in case the construction bubble bursts.“When you can absorb reductions over time it’s certainly a good thing to do,” he said. “You can’t predict these kind of things.”Building permit revenue is one of the city’s main sources of revenue outside of taxation, and overestimating the revenue source could have disastrous effects on the city budget. Mayne said relying too much on permit revenue could mean the city would run short of money to pay for the costs of running the city.“You wouldn’t want to be in a position where you’re over budget and you have a huge shortfall,” he said.Mayne said that the finance department is recommending that council increase slightly the forecasted permit revenue for next year, expecting that construction in Vernon will stay near its current pace. 
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