Southgate will enter into a joint building department structure with Chatsworth, West Grey and Grey Highlands. It will go into effect in June.
The seven months remaining in 2016 will cost Southgate about $50,000, or 15% of the cost.
CAO Dave Milliner says there will be cost savings with the shared building department.
Meanwhile, Southgate is moving to recoup some of the costs associated with a building boom expected to start this year in Dundalk.
Council heard that the municipality could be looking at a cost of upwards of $20-million for infrastructure associated with the new development. But development charges will bring in only about $8-million.
Council agreed to pay $16,000 for a development charge update. That update could lead to higher development fees.