Building permits and construction values in the town of Huntsville declined in 2025, resulting in a Building Department shortfall of roughly $900,000.
The Building Department’s revenue generated in 2025 was $760,003 (unaudited), according to a report submitted to the Town’s March 25 General Committee by Christopher Nagy, Chief Building Official for the Town of Huntsville.
The direct and indirect costs of administering and enforcing the Building Code Act through the Town’s Building Department were approximately $1.7M in 2025.
Over the last five years, the municipality’s peak year was 2021, with a total of 891 building permits and a construction value of roughly $196,000,000, compared to 2025, which saw a total of 638 building permit applications and about $81,000,000 in construction values.
“Unfortunately, I don’t think it’s a surprise to anybody around here, but due to the economy and things like that, we are lower in our building permit numbers and therefore lower in our building permit revenues,” said Nagy, who also noted that in 2023, the province of Ontario created a construction fee deferral system. “So you’re going to see under the report that there was roughly just shy of $800,000 that is recorded under revenue. The actual fact is, it’s… closer to a million dollars; however, because of this deferred revenue, we can only use the revenue that was actually used for plan examination or inspections, and we still need to hold off on some… maybe building permits that haven’t been finalized under that year,” he explained.
Nagy’s report notes that of the 638 applications submitted in 2025, 585 building permits were issued. “These projects include multiple commercial buildings such as the Daiken Expansion, and several School upgrades by TLDSB. The residential market continues to see significant expansion with 72 new homes being built in the rural and urban areas.”
Municipalities such as the Town of Huntsville have a Building Permit Program Stabilization Reserve Fund. The fund is used to help offset shortfalls during economic downturns, and during years when the department generates a surplus, the funds are also placed in the reserve.
“In 2017, Council approved the creation of such a reserve fund, along with a related policy which identifies that this reserve fund may only be used to support the building permit program during periods of economic decline, or with funding one-time capital projects to avoid fluctuations in fees,” explained Nagy.
Because the department had to draw from the reserve fund in 2025, the remaining balance in the reserve is currently sitting at $185,000 (unaudited), stated Nagy. “To ensure that this stabilization
fund does not get depleted over time, Staff have created a phased approach to increasing user fees which will help offset departmental costs in the future. In 2028, permit fees will be increased from the $11/$1000 construction value to $12/$1000…”
Deputy Mayor Dan Armour was not fazed by the shortfall. He said there are building permits and associated revenues from 2024 that have not been finalized. “So that money doesn’t carry over until they’re closed.”
Armour said the department has been historically self-sustaining.
You can find the report HERE (PDF).
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A +28% reduction of building permits issued from 2021 to 2025, and a +11% reduction of permit activity over the 5-year average, but an increase in department spending over the same period. Municipal financial management at it’s finest.
Too much red tape. Town comes up with all.kinds of reasons like there’s a barn swallow so you can’t build there. There are several barns around. They held us up saying we couldn’t build on a field because of some bird. This field gets cut and baled everyday so just an excuse on there part. Town doesn’t make it easy to get permits and so it’s no wonder contractors are giving up and retiring rather than fighting with the town. So when there was lots of construction and money coming in council raised taxes 11% so now we have less construction you can bet council will raise taxes and blame builders instead of making getting permits easier. They sure charge a lot for them.
Have you tried to get a building permit in Huntsville? They are ridiculous. Why would anyone even bother to try?
Maybe the Township will get around to following up on past building permits issued then
I have a permit still hanging on my property from 2022….it used to be bright pink. Now its white and curled from the weather. Just waiting on the inspection of my dock replacement so I can take the eye sore down..
Typical…….find ways to increase fees rather than find ways to reduce the cost to administer