Development Charges Review
Consultation has concluded
What are Development Charges and why are they important?
Development charges are fees on new developments that fund growth-related costs for the Township which are governed by the Development Charges Act, 1997. The Development Charges Background Study relates to the provision of eligible DC Services which includes Development-Related Studies, Library Services, Fire Protection Services, Parks and Recreation, and Services Related to a Highway.
The principle behind development charges is that growth should pay for growth. Development Charges ease the financial burden of growth-related capital costs on existing taxpayers. Without development charges, the cost of growth-related infrastructure would fall entirely to existing property taxpayers in the form of higher property taxes.
How are Development Charges determined?
The Development Charges Act, 1997 provides municipalities with the authority to pass by-laws to impose Development Charges. The Act and Ontario Regulation 82/98 require that, prior to passing a Development Charges by-law, municipalities must prepare a Development Charges Background Study that includes the following elements:
- The forecasted amount, type and location of future development;
- The average service levels provided in a municipality over the 15-year period immediately preceding the preparation of the background study;
- Capital cost calculations for each eligible Development Charge service; and
- An examination of the long-term capital and operating costs for the infrastructure required to service the forecasted development.