Huntsville Building Permit Revenue Drops Amid Lower Construction Activity

Revenue dropped by approx $330,000 in 2025 due to a lack of new builds

Huntsville staff reported a decline in building permit revenue during the March 25, 2026, General Committee meeting.

As part of the Town's 2025 Annual Building Department Review presented by Chief Building Official Christopher Nagy, he reported that building permit revenue totalled approximately $760,003 in 2025, a decrease of roughly $330,000 from 2024.

Nagy attributed the decline as in part to reduced construction activity compared to previous peak years, as well as broader economic conditions impacting the development industry.

In 2025, the Town received 638 building permit applications and issued 585 permits. While still reflecting ongoing development, the figures represent a slowdown from earlier years.

However, he reported that construction remains active across the Town, including commercial projects, school upgrades, and continued residential growth, with 72 new homes built in both urban and rural areas.

The report also outlines the financial structure of the building department, which operates under the Ontario Building Code Act. Municipalities are required to recover the costs of administration and enforcement through permit fees. In Huntsville, total program costs reached approximately $1.7 million in 2025, with salaries, wages and benefits representing the largest expense.

New accounting rules introduced in 2024 have also impacted how revenue is recorded. Permit revenue can now only be recognized once work such as plan reviews or inspections is completed. As a result, approximately $171,000 in revenue has been deferred and will be recognized in future years.

The Town's Building Permit Program Stabilization Reserve Fund, used to manage fluctuations in revenue, currently holds an unaudited balance of about $185,000.

Looking ahead, staff note that permit fees are expected to increase in 2028 to help offset rising costs.

The report also highlights ongoing efforts to improve operations, including closing dormant permits, advancing compliance on property standards issues, and developing new initiatives for 2026 focused on safety and risk reduction.

Councillor, Cory Clarke, inquired about whether the department “budgeted properly for substantially less revenue than last year?

Nagy advised that areas where costs will be reduced include freezing the planned third-party software integration implementation for 2026, having what they need for staff, and “pulling back on training,” which is now also virtual resulting in less meals and accommodation costs.

He added, “Hopefully the province and feds will encourage changes for more construction to happen.”