Grey Highlands saw a dip in building activity last year compared to 2022.
In an annual report on building permit activity council reviewed during a meeting on July 17, the municipality issued 471 permits in 2023, down from the 540 in 2022.
Last year saw a combined mix of 101 permits issued for detached and townhomes, while 104 were issued in 2022. There were also several permits issued for additions, renovations, and accessories, as well as for new agricultural buildings.
While the number of permits did see a decrease, a report from Chief Building Official Karen Holt shows construction value shot up almost $3 million last year.
Deputy Mayor Dane Nielsen says the trend appears to show while the number of permits is down, the cost to build continues to increase.
“It is an interesting statistic to see and you are seeing similar things starting off in 2024,” says Nielsen.
As the municipal building department is funded through permit revenue and transfers to and from the building reserve fund to ensure it is self-funded, the department transferred over $160,000 last year to fund its operations.
“At this point, it is projected that in 2024, a transfer from the building reserve fund similar to the 2023 amount will be required at year-end,” says the report from Holt.
Coun. Nadia Dubyk questioned as to why the department needed to make these transfers from the reserve.
“If that trend continues, the reserve fund would be depleted in about three and a half years,” says Dubyk.
CAO Karen Govan says as a rule of thumb, they always try to keep at least two years worth of operating expenses in the reserve, adding they have a healthy amount.
