Building permit fees report shows surplus for Scugog

DARRYL KNIGHT Local Journalism Initiative Reporter for The Standard

SCUGOG: At their meeting, on Monday, May 5th, Scugog Township council received the 2024 Building Permit Fees Annual Report which showed permit revenues once again outpaced departmental expenses, resulting in a surplus of $155,500 being transferred to the municipality’s Building Permit Reserve Fund.

The report, presented by Laura E. Barta, Director of Finance/Treasurer, fulfills Scugog’s annual legislative obligation under Ontario’s Building Code Act, 1992, which requires municipalities to report on the total fees collected and the costs associated with enforcing and administering the building code.

“This is the fifth consecutive year we’ve seen permit revenue exceed costs which reflects strong growth and responsible financial management within the Building Department,” said Ms. Barta during the meeting.

According to the report, the Township collected a total of $841,289 in revenue in 2024, including $836,648 from building permits, $4,100 from sign permits, and $541 in fines. Direct costs for the year totalled $586,763, with an additional $99,026 in indirect expenses, for a combined total of $685,789.

Under the Building Code Act, any surplus generated from building permit fees must be transferred into an obligatory Building Permit Reserve Fund. With the latest transfer, that fund now holds an unaudited balance of $1,041,005, as of December 31st, 2024. An additional $302,520 remains in a separate reserve fund for forfeited building deposits.

“These reserves are not just a financial cushion,” Ms. Barta added. “They’re essential for ensuring we can continue to support inspections and complete permit requests in years where revenues may not cover all operational costs.”

The report also notes, the Township revised its building permit fees in mid-2024, based on a comprehensive review by Hemson Consulting. The new rates came into effect on July 1st and are now subject to annual increases tied to the Consumer Price Index.

Council members responded positively to the report. “This shows a sustainable approach to managing building activity and growth in our township,” said Mayor Wilma Wotten. “We’re building not just homes and businesses, but financial resilience.”

The annual report meets the province’s updated requirements to provide transparency in municipal building operations, including detailed breakdowns of both direct and indirect costs, as well as reserve balances.

“This kind of fiscal reporting is important,” noted Councillor Ian McDougall. “It gives residents confidence we’re not overcharging and their fees are being put to responsible use.”

Interest earned on the Building Permit Reserve Fund also contributed $28,940 in 2024.

With construction activity expected to remain steady in 2025, the Township is poised to continue its trend of responsible growth, while maintaining compliance with provincial regulations.