Guelph-Eramosa council has approved fee increases in the township’s planning and building departments ranging from 15% to 624%.
On May 20, Andrew Grunda, associate director with Watson and Associates Economists, presented council with a 46-page report outlining the need for the changes. Todd MacDonald, of Performance Concepts, also helped explain the report.
One chart in the report showed the township annually loses about $62,249 because its fees are not in line with the total cost of processing applications received by the planning and building departments.
“The township is drastically under-recovering,” Grunda said, although he did add the local annual loss is “not atypical” from results he has seen in other municipalities.
The biggest shortfall is in the planning department, which has an annual cost-recovery deficit of $52,505 (only 21% cost recovery), while the building department deficit is $9,744 annually (96% cost recovery).
However, if the township made annual reserve fund contributions of $27,453 (over the next five years) as suggested by Watson and Associates, the annual cost-recovery deficit for the building department would increase to $37,197 (87% cost recovery).
As a result of the above deficits, the report recommended – and council approved – the following changes to planning department fees:
– retaining the current $2,000 application deposit for zoning bylaw amendments, and increasing the administration fee 624% from $250 to $1,810;
– retaining the current $1,000 deposit for site plan applications, and increasing the administration fee 524% from $250 to $1,560;
– retaining the current $10,000 deposit for pre-subdivision agreements but also introducing a $3,280 subdivision application fee where there is currently no charge; and
– increasing the minor variance fee by 112%, from $500 to $1,060.
As for the building department, the report recommended and council approved 15% increases across the board.
The basic minimum fee for any building permit, is up from $80 to $92 and additional fees for residential, commercial, and industrial permits – applied for every $1,000 of building value – are also up 15% from $10 to $11.46.
For a homeowner planning a renovation or addition worth $10,000 that means the permit will now cost $206, whereas before it would have cost $180.
Permits for farm buildings and other items such as pools, fencing, and septic systems will also go up 15%.
Councillor Doug Breen said he has no problem with the building department increases, but he is concerned about the size of the increases in the planning department.
“This is a huge jump … how did we get here?” he asked.
MacDonald said as it stands right now, neighbours are basically subsidizing the administration fees associated with zoning bylaw applications.
And Clerk Janice Sheppard said the size of the increases reflects the fact that the fees have not been changed in a long time, including some that are left over from a time when the township contracted out most of the work now being done by in-house employees.
Breen said he is concerned about the impact the new fees may have on individual landowners, farmers, or small businesses.
“We demand a site plan for some pretty minor things sometimes,” he said, noting the 524% cost increase in that category.
Mayor Chris White said the bottom line is the increases are “not frivolous,” but necessary for cost recovery. He then asked how many Ontario municipalities are moving towards full cost recovery.
Grunda replied that Watson and Associates has been hired to review the situation for over 30 municipalities, and many more are also doing it. When it comes to building departments, every municipality is trying for full cost recovery, MacDonald added.
Grunda said for the most part, the decision to move to full cost recovery is an easy one for municipal councils.
White said he would rather have developers paying for the full cost of applications than have residents subsidize those costs.
And while he is concerned with the large increases, Breen agreed with White.
“I can’t think of a reason why the tax levy should subsidize administration fees,” Breen said.
When it came time for a vote, Breen and councillor Reta Moyer were in favour of the changes as well as the annual reserve fund contributions. Councillors Roger Knapp and John Scott were absent.
