Anyone looking to build or renovate a home in Niagara-on-the-Lake can expect to pay more for permits and approvals next year.
Starting Jan. 1, the town is increasing a wide range of planning and building permit fees, as well as introducing new fees, in an effort to take care of a $1.67 million deficit between the cost of its planning programs and its revenue from planning fees.
For instance, building permit fees for new construction and additions on a single-detached, semi-detached and duplex dwelling will go up to $2.16 per square foot, up from $1.41.
Zoning bylaw amendment planning fees will hit $14,980, up from $9,260, while official plan amendments will jump to $13,940, up from $9,385.
Planning fees for base charges for the draft plan of a subdivision will go up to $18,800 from $10,400. The extra fees per lot per block will more than double to $370 from $170.
The approval of a final plan will also double, going to $4,280 from $1,975. Standard site plan applications will go up to $14,680 from $9,070.
Derek Ali, an engineer from DFA Infrastructure International Inc., which conducted the review of the town’s planning fees, says NOTL’s planning fees haven’t been updated since 2005, while building fees were last reviewed in 2018 — an adjustment made only to reflect market conditions at the time.
“It’s due to be updated,” he told council last Tuesday.
Currently, he said, there’s a $1.67-million deficit between the cost of planning programs and revenue from planning fees. For building services, the deficit stands at just over $297,000.
“There’s a big gap in the revenue generation,” Ali said.
Because revenue and costs vary year to year, he said, municipalities are generally advised to maintain a reserve fund to offset losses. Niagara-on-the-Lake currently has no such reserve.
The shortfall is covered by property tax revenue. Ali said the new fees are designed to remain competitive with other Niagara municipalities — as in, not charging significantly more than other cities and town in the area.
Coun. Wendy Cheropita expressed frustration with the town’s past approach to fees.
“Oh my god, we’ve left so much money on the table for the last 20 years,” she said.
Reducing the burden on property taxpayers was a key argument for the increase. The staff report said the new fees could lower the tax-funded portion of planning and building costs to 48 per cent, down from 68 per cent.
Coun. Andrew Niven questioned why full cost recovery hadn’t been pursued.
“What keeps the town from achieving full cost recovery on that side?” he asked.
Ali responded that maintaining competitiveness with neighbouring municipalities was a key consideration.
Coun. Sandra O’Connor said she supported the proposed building fee increases but raised concerns about planning fees and the deficit. She proposed even higher costs for planning fees. However, there were questions about whether staff had enough time to assess the impact of such a change.
In the end, there was no one to second her motion and it was not tabled.
All councillors except O’Connor voted in favour of the fee increase during council’s meeting this past Tuesday.
