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Published on Jordan Independent (http://www.jordannews.com)

Low revenues might lead to cuts

By Mathias Baden
Created 04/21/2008 - 9:18pm

Building permit revenues are lower than expected, Jordan Finance Director Tom Nikunen told the city council tonight.

The city budget calls for $230,100 in revenues to come from building permits. During the first quarter of the year, only $7,855.62 had been received. That's a little more than 3.4 percent of the annual budget, according to Nikunen's monthly finance report.

"Theoretically, we should be at 25 percent," Mayor Ron Jabs said, "but we're at 3.41 percent."

Nikunen assured the city council that the first quarter is not a busy time for developers to pull building permits, but in a memorandum, he said that "if we continue to see no growth in building, we will have to look at possible spending cuts yet this year."

City staff has identified some purchases it can hold off on making if revenues are shy of projections.  

"We'll know more in the next three months how our building is going to be," Nikunen said.

Last year, the city grossed about $154,000 -- far less than budgeted -- in revenues from building permits.


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