Councillors here are asking whether a healthy reserve fund in Centre Wellington’s building department could translate into lower building permit fees in the future.
As chief building official Randy Bossence presented his annual building report to council’s committee of the whole on March 20, councillor Stephen Kitras asked what the current reserve was.
Reserves now stand at $1,014,082, with roughly half of that amount resulting from the 2016 surplus.
“To be honest with you, I did not expect 2016 was going to be as busy as it was,” Bossence said.
Kitras asked, given the potential of even more revenue in 2017, “is there any potential of lower permit fees?”
“Absolutely,” Bossence responded.
He explained the province does not put a cap on how much goes into the reserve fund, but a 2005 municipal report recommended a specific amount.
Bossence said the plan would be to engage a consultant to look at the building department services and determine an appropriate cap for the reserve fund.
He said at that time, consideration would be given to lowering permit fees.
“I’m constantly looking at other municipalities to see their permit fees and reserves are – to make sure we are where we need to be,” said Bossence.
When reserves get too high, permits are lowered or the money is spent on additional staff or improvements to department operations, he explained.
Kitras asked where Centre Wellington stood in terms of its permit fees compared to other municipalities.
Bossence stated the fees are fairly close, noting there are municipalities that have lower fees, but they also have negative reserves.
He explained the intent of the building department is to be self-sufficient.
“I think we are right in the general area where are fees need to be,” he said. “The fees are certainly paying for the services provided.”
He agreed there is a need to review permit fees.
When Kitras asked how low fees could drop and still have the department break even, Bossence said it would be difficult to estimate, as each permit requires a different amount of service from the department.
CAO Andy Goldie explained legislation allows building departments to build reserves “so municipalities would not have to burden taxpayers the cost.”
He stated, “if the economy falls apart, we have enough to carry the department over the course of a few years.”
Morris said that it is better for the building department to have a positive reserve, because taxpayers would be required to pick up the shortfall.
Bossence said, “The last thing I would want to do is operate with a deficit.”
Councillor Steven VanLeeuwen said as construction values grow higher, the amount needed to be set aside may drop.
“Once we get this healthy, we want to remain attractive to growth, but the main goal is to provide a service to the community,” said VanLeeuwen. He added he looks forward to the time when the township can reduce fees.
