Construction and building activity has dropped substantially in the Town of The Blue Mountains.
At a recent committee of the whole meeting, The Blue Mountains council received the mid-year financial update report from members of staff.
The financial numbers show that as building activity has stalled, revenues collected for development charges and building services have plummeted.
At the end of June 2024, the town had collected just $1,010,479 in development charges for the year from 42 total payments. This number is down significantly from the same time in 2023 when the town had collected $7,079,185 from 90 payments.
The report also detailed that building activity in the town has dropped substantially. At the end of June, the town had collected $284,431 in building department revenue - this total was just 21 per cent of the budgeted amount of $1,336,225.
Finance staff are forecasting a deficit in the building department of $349,082 by the end of the year. The report forecasts that the town will collect under $1 million in building department revenue in 2024 with just $987,128 coming in.
CAO Shawn Everitt told council the report is concerning for the town.
“There is obviously something going on,” Everitt said. “We are starting to see a significant slow down.”
The CAO said staff would continue to monitor the trends that are happening and acknowledged that there are “ebbs and flows” when it comes to growth and development.
The report also included some good financial news for the town.
Salaries and benefits expenses for the town’s workforce are forecast to be under budget by $765,224 by year’s end. This is primarily due to staff vacancies at the town.
Revenue from the bylaw department is also expected to be over budget by year’s end by $67,919. In addition, the Beaver Valley Community Centre continues to be a very popular facility. Revenue for rentals of the community centre is forecast to be over budget by $55,100 at year’s end.
