Officials with the City of North Bay say a revenue loss of about $84,000 is a small price to pay to keep home construction costs from escalating as a result of an index rate structure.
In 2000 the council adopted an index rate structure, which is applied to development fees and is affected by expanding economies in larger centres in the nation. Under the old system, development fees for a single-detached home would have increased to about $4,045 per lot by 2004. City council recently scrapped the index-controlled rate structure, which means the development fees will only increase by about $400 each year. As a result, the city will lose about $84,000 in development fee revenues.
City council also approved the creation of a technical standards task force and liaison advisory committee that will meet on a regular basis to discuss better ways of doing business.
