If you are building a new house, building or expanding a non-residential building or submitting a planning application, it is possible you will need to pay development charges at the time of your building permit. Development charges are one-time fees paid by developers to help the Town recover costs related to increased pressure on our infrastructure and services resulting from new development. Development charges help with municipal services such as:
- Roads
- Transit
- Water and sewer infrastructure
- Community centres
- Fire and police facilities
View the Municipal Development Charges By-law for more information
Current Development Charges - In effect June 1, 2023
Upcoming Development Charges - In effect - June 1, 2024
Bill 23 - More Homes Built Faster Act
The passage of Bill 23, More Homes Built Faster Act, 2022, on November 28th, 2022, stipulated that Municipal development fee rates for residential, commercial and industrial projects shall be subject to a 5-year phased in collection rate starting at 80% the first year and incrementally increasing by 5% per year. On June 1, 2024, the Municipal collection rate will increase to 90%.
Frequently Asked Questions
What are development charges? |
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The principle behind development charges is that growth should pay for growth. Development charges ease the financial burden on existing taxpayers to fund new services as a result of growth. Without development charges, the costs for additional infrastructure would be at the expense of existing property owners in the form of higher property taxes and user fees. Development charges are used by most municipalities in Ontario. The Development Charges Act, 1997 provides the legislative authority for the collection of development Charges. |
How are development charges determined? |
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The Development Charges Act, 1997 provides Council with the authority to pass a by-law to impose development charges. The Act requires that a Development Charges Background Study a new Development Charges By-law be completed at least once every five years. The Background study takes the following into account:
The Act also requires that the municipality must hold at least one Public Meeting to present the updated Development Charges Background Study and proposed Development Charges Rates. Once all of the requirements are met a new By-law is passed based upon the results of the Background Study. The Act and the By-law provide for an annual adjustment, in June of each year, of development charge rates. The Act and the By-law also provide exemptions for certain types of development. The Development Charges By-law should be reviewed for these exemptions. |
What does the Town do with the development charge funds? |
| Funds collected for development charges must be held in a separate Reserve Fund for each service to which the levy applies. These funds can only be spent on paying for the growth-related capital costs for which the funds are intended. For example, funds collected for roads must be held in a Development Charges for Roads Reserve Fund and can only be spent on growth-related capital costs for roads. Development charges may not be used to fund operating costs. |
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