Building Fee Increase Deferred - Public Meeting - Building Fee Review - April 1, 2026

The town held a public meeting to review a proposed 19% increase in building permit fees intended to move the building department toward full cost recovery. Staff reported the department’s annual operating costs are about $865,000, while fee revenue averages about $727,000, leaving a $138,000 shortfall. Speakers from homebuilders associations asked council to defer the increase for one to two years, pointing to a steep decline in new residential applications and job losses in the sector. Councillors discussed options including implementing the increase, phasing it in, or deferring it, with staff warning that any delay would require funding from another source. ## Topics Discussed ### Building Department Budget Shortfall Staff said the building department is running a $138,000 annual gap between costs ($865,000) and revenues ($727,000). One speaker warned that without higher fees, the service would be supported by taxpayers: “Without the increase, it will in fact be subsidizing this operation through the tax levy. There is no other funding source to pay for these kinds of costs.” A consultant framed the issue as a fee-for-service model, using small projects as an example: “If someone comes in and wants a permit to build a porch or a deck, if at the current fee rates, a portion of what that permit cost would be funded by their neighbors rather than themselves.” Staff also said the building reserve fund is being drawn down, with one speaker noting it “is being depleted quite at quite a clip to be honest.” ### Industry Opposition to Fee Increase Timing Homebuilders argued the proposed increase comes during a major slowdown. Speakers cited an approximately 85% decline in new residential activity and questioned why fees would rise if workload is down. One speaker asked: “If new residential activity has decreased by approximately 85%, how is it that the cost to administer and enforce building permits have increased to the point where a 19% hike is being proposed? That it's a disconnect that's difficult to reconcile.” Chuck McShane, CEO of the Niagara Home Builders Association, urged the town to look for efficiencies first: “When the town's income and workload are decreasing, why are fees increasing instead of efficiencies being found just as every other business has been forced to do?” Several speakers said they were seeking a delay rather than cancellation. One summarized the request as: “We're only asking for the deferral of the increase, not asking for a deferral all just.” ### Fee Benchmarking and Cost Recovery Consultants told council the report was designed to show what full cost recovery could look like, not to dictate a single outcome: “Our goal with this report was to present to council what the full cost recovery fee could be. Recognizing that council's ability to charge whatever it wants and implement things however it wants is, you have full flexibility to do that.” Speakers also cautioned against assuming lower fees elsewhere mean the same service can be delivered for less: “Don't assume that other municipalities have low rates because magically they can produce the same service at a lower cost. It doesn't it it doesn't quite work that way.” ### Impact on Homeowners and Housing Costs Councillors raised concerns about how higher permit fees could affect housing affordability and the optics of increasing costs while other governments are trying to spur homebuilding. Councillor Frank said: “my biggest concern was I mean we're looking the timing is just terrible… the optics are terrible… whatever costs are incurred by home builders is going to end up with the homeowner in the end.” Others questioned whether the increase would materially change purchasing decisions. One speaker said: “Would $500 turn someone away from a house?… I don't think it's going to make or break the $900,000 average sale price in Grimsby.” ### Legal Requirements and Alternative Approaches The meeting also addressed how building departments are funded and whether council could phase in the increase. Speakers emphasized the fee-for-service nature of building operations: “The vast majority of municipalities in Ontario have or strive to have full cost recovery fees for this particular operation because it is very much a fee for service kind of thing. It's not like development charges.” Councillors discussed alternatives such as phasing in increases over several years, but staff and speakers repeatedly returned to the question of who pays if fees do not cover costs. One speaker argued that undercharging shifts costs onto others: “If at the current fee rates, a portion of what that permit cost would be funded by their neighbors rather than themselves.” ## Motions No motions were passed, rejected, or deferred during this public meeting. Council indicated a decision would be made at a subsequent meeting after staff brings forward a report. ## Attendees The transcript does not provide a complete list of councillors present. Mentioned participants include: - Councillor Vardy - Councillor Frank Also present: - Stefan Jeternovich, Hemson Consulting - Chuck McShane, CEO, Niagara Home Builders Association - Building department staff (names unclear in transcript)