Building permit fees set to rise four per cent

The cost of building appears set to go up in Fort Erie.

Councillors learned about the proposed increases to building permit fees at the December 2 council-in-committee meeting. Staff are proposing increases of four per cent across the board for the various types of building permits; only a few are being held in order to get them in line with regional comparators.

The town maintains a reserve fund to cover the cost of fluctuations in revenues versus expenses related to building permits.

“Where the fees collected exceed the budgeted expenses for the year, the additional funds are transferred into a reserve account. And when revenues are not sufficient to cover the cost for the year, the reserve account can be used to balance the budget,” said Keegan Gennings, chief building official.

A presentation to councillors said staff will continue to review permit revenues on an annual basis to ensure they’re sticking to the cost neutral goal. Expenses outpaced revenue this year and last, after a three-year period where revenues were higher. Gennings said this was due to a period of rapid growth that began slowing in 2023.

A consultant hired by the town back in 2022 recommended in a fee review report a year later that building fees be indexed annually, leading to the proposed increases for 2025. Gennings said the increase of four per cent is in line with user fee increases that were to be discussed at the December 4 budget meeting.

Councillor Ann-Marie Noyes questioned the reasoning behind the increase of four per cent. Even though expenses exceeded revenues in the last two year, Noyes said they’re “still ahead of the game” since revenues exceeded expenses for the three years before that.

Gennings said there’s a lot that goes into it, including staff forecasting what kind of building activity they expect in the near future.

“Speaking to builders, we’re not seeing a forecast of a super busy year next year, so we know next year is going to potentially be another shortfall,” he said, adding the annual reviews and forecasts could dictate a future year with no or lower increases.

To give a dollar figure to the proposed 2025 increase, Gennings used an example of a building permit the town recently issued for a house that was 2,360 square feet, with a garage and deck of 445 and 123 square feet respectively.

Under the existing rates, building permit fees cost the builder $3,953.36. The proposed rates would see that number go up by just over $150 to $4,106.32.

Assuming the bylaw making the increases official gets passed by council later this month, the increases will go into effect on January 1.

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