Building permit fees expected to rise 6%

The cost of most building permits and business licences in Medicine Hat could rise by 6 per cent next year as the department says it is seeking to recover more of its cost in providing the services.

Top administrators have said a cross-departmental effort is underway to re-evaluate fees, penalty charges and rates across city hall.

That aims to raise revenue to fill a growing budget shortfall that administrators say could reach $27 million next year.

A briefing presented to the development and infrastructure committee meeting on Wednesday states the planning and building services department currently recovers just 60 per cent of the costs.

Adding six per cent to current fees in both 2021 and 2022 would bring in an additional $198,000 per year when fully implemented.

It will go to city council for approval on Nov. 16.

A similar rate review of tax rate penalties, to raise the rate from 7 to 14 per cent next year, was rejected by council members, but sent back to committee to potentially develop a phased approach.

For permits and licences, the schedule comprising hundreds of fees shows almost all would see the blanket increase.

Administrators say permit costs account for about 1 per cent of any construction budget project, and an increase shouldn’t severely damper construction activity.

A general business licence would rise to $91.75 in 2021 then to $103.10 in 2022.

A permit for a new larger garage, for example, would rise from $153 today, to $162.40 next year then $172 in 2022. Values do not include an “e-permit” surcharge of 5 per cent, if acquired online.

A basic electrical, heating, gas, sewer and occupancy permit would jump $11 to between $101 and $111, over two years.

Almost all larger permits and services, like requesting a zoning change for subdivision, would also rise by the 6 per cent.