Good news for those building in Chatham-Kent.
Water and wastewater development charges are set to go up, but the cost of municipal building permits will be reduced following Council approval of a staff recommendation Monday evening.
CK's Director of Building Development Services Paul Lacina said the current balance of the building permit reserve fund is $6.4 million, which is three times his department's operating budget and double their target of 1.5 times. Lacina noted building departments usually have their building permit reserve fund at one to 2.5 times their operational budget. The 2023 operational budget for the building department in Chatham-Kent was $2.1 million.
"This reduction of fees would also support the recently adopted Housing Pledge by taking action to help reduce costs to further increase the supply of housing," Lacina wrote in his report.
Building permit fees were created to recover the cost of delivering services such as the administration and enforcement of the Building Code Act. The Act states that the total amount of fees collected must not exceed the anticipated reasonable costs to administer and enforce the Act.
The greenhouse sector, which was the hardest hit by increases in development charges, would see the biggest savings with the changes to building permits dropping from $171,722 in permit fees in 2023 down to $30,053 in 2024 or $0.05 per square foot.
Building permit fees for an average home would drop from $2,307 last year to $483 this year.
The building permit fee reduction is proposed through the current 4-year budget.
Meantime, several new fees and deposits are being introduced in 2024.
Lacina noted a new deposit for new construction has been added as part of the building permit application and will be applied to the building permit fee when the building permit is issued. The deposit is not refundable if the applicant cancels or doesn't pick up the issued permit.
A $250 damage and final inspection deposit for tents, pool enclosures, and connection permits has also been added. The deposit will be refunded upon final inspection if there is no damage to municipal infrastructure such as curbs or sidewalks.
A re-submission fee is being introduced as well to be applied when the applicant resubmits amended building plans after the building permit is issued.
"These changes are at times extensive and time-consuming for staff to review," Lacina said.
A service review, which will include a review of the current fee structure, is expected to be complete in 2025, according to Lacina.
Click here for more information on the 2024 fees.