Building permit fees cost up to 60 per cent less in Bradford West Gwillimbury compared to its neighbours, and the town is now considering hiring a consultant to do an analysis of its fees.
The report would also include a look at the building division’s current reserve funds and estimate what its revenues will be for the next five years, and review costs related to administration and enforcement of the Building Code Act in BWG.
“I think this year revenue will be down. I will keep my eye on it,” said William Wong, the town’s chief building official, at a recent BWG council meeting.
Building permit fees for residential projects in BWG are 20 percent to 30 per cent less than neighbouring municipalities in Simcoe County and York Region, and they are 60 per cent less for institutional, commercial and industrial projects, according to a town staff report.
Due to a down-swing in the development market, it is now “essential” to re-examine the town’s fees because its building department is required to be funded completely through permit fees, not property tax dollars, read the report.
The building division’s reserve fund has seen a drop from a high of about $4.2 million in 2016, to about $2.2 million in 2018, according to the staff report.
No money was taken out of the reserve fund in 2015 or 2016 — rather about $648,000 was put into the reserves during those years — but some was used in 2017 and 2018 as revenues fell.
In 2016, the town saw about $2.5 million in building-permit revenues, followed by $1.1 million in 2017, and $433,000 last year, read the report.
Several members of council suggested at a June 4 meeting that town staff could do an analysis of the fees themselves, rather than hire a consultant to do the work.
Wong, however, said part of the reason the town should hire a consultant is in case the fees get challenged legally, and then the town can say it hired someone to do a third-party analysis.
“We want to make sure when we do something it stands up in a court of law,” said Coun. Mark Contois. “I want to be competitive and still be lower than some of our neighbouring municipalities.”
Coun. Gary Baynes questioned what consultant would know more than the town’s own staff.
“I still do think we could do it ourselves,” said Mayor Rob Keffer.
Since BWG’s building-permit fees are so much lower than in other communities, Coun. Gary Lamb also suggested the town could simply raise its fees but keep them lower than its competitors.
Ultimately, council voted in favour of putting out a Request for Proposals to get a costing and decide what to do after that. Baynes and Lamb were the only votes against that motion.
PERMIT FEE COMPARISONS:
Residential (per square metre)
- BWG: $11.10
- Barrie: $14.40
- Innisfil: $20.24
- New Tecumseth: $10.84
- Newmarket: $14.65
- East Gwillimbury: $15.61
Industrial (per square metre)
- BWG: $5.60
- Barrie: $11.10
- Innisfil: $9.22
- New Tecumseth: $10.84
- Newmarket: $10.06
- East Gwillimbury: $10.23
