Fort McMurray will review wildfire rebuild fees after complaints from homeowners

Facing a swell of complaints, councillors with the Regional Municipality of Wood Buffalo have agreed to review the fee structure for rebuilding homes leveled by May's wildfire.

On Tuesday, municipal councillors asked administrators to re-evaluate the fees associated with inspections, demolition, and redevelopment of damaged properties.

The motion, proposed by Counc. Sheldon Germain and co-authored by councillors Keith McGrath and Allan Vinni, passed unanimously after a rigorous discussion about the financial challenges facing homeowners.

Recommendations for possible amendments will be presented to council by Sept. 27.

'The municipality should not be benefitting'

The motion came as a relief to Holly Bennett, who lost her home in Saprae Creek. She was forced to pay $100 to cancel her utilities, even though her property had been completely devoured by the flames.

She expects to pay hundreds more to reconnect those services when her home is rebuilt.

• FortMcMurrayresident frustrated by steep rebuild fees

"I don't understand how the municipality can either ethically or morally think it's okay to increase their coffers by making money off of the people who have already had their lives destroyed," Bennett said.

"The fact that anyone has to pay permit fees for homes destroyed by the fire is outrageous."

It's a sentiment shared by Janene Whenham, who saidthe steep fees involved with rebuilding her home in Saprae Creek have been like a "slap in the face."

First, she spent $200 on a demolition permit, $4,000 on a truck to haul debris and ash to the landfill, and then $3,800 to discard it at the municipal landfill. The building permit cost her $5,000.

In the end, she expects to pay more than $20,000 in direct and indirect municipal fees to rebuild on the same property.

"If the demolition permit and the tipping fees would have been waived from the beginning, at least the members of this community might have thought maybe they have their backs," Whenham said in an interview with CBC News on Monday.

Although Whenham says her costs are covered by insurance, she says the municipality is putting a drain on the thousands of residents already struggling to rebuild.

"Right off the bat, you're making money off me losing everything. I shouldn't have to pay to dump that waste.

"It's disgusting the municipality should not be benefitting."

Deficit damage

However, the decision to give homeowners a break on the costs associated with rebuild comes at a moment when the municipality, once flush with financial reserves, is grappling with budget shortfalls.

On Tuesday night, council said it's projecting a deficit of $16 million, which doesn't include fire fighting and cleaning costs the municipality might have to shoulder after the wildfire.

• Fort McMurray residents claim 'nightmare' dealing with insurance

The city blames the deficit on a reduction in the sale of building permits, landfill fees, lower investment returns and commercial sewage and residential water charges mostly due to a sluggish economy.

The deficit doesn't take into account the proposed cancellation of property taxes for residents.

Coun. Tyran Aultsaid the region faces some tough decisions ahead.

"We get labelled as being bad councilors and this is the reality that we are dealing with with,"Aultsaid.

"So there's probably more cuts that are going to have to be made."