April 2, 2020
The Nation Development Charge Study 2020
“The Nation Municipality’s current Development Charges By-law was scheduled to expire on June 1, 2020; however the Ontario Government recently issued a Regulation to address the impact of the Covid19 pandemic, which suspends this deadline until further notice. Prior to the adoption of a new Development Charges By-law in 2020, the Municipality is required to complete a new Development Charges Background Study in order to identify the services to which the Development Charges will relate for the next five years.”
To view the Development Charges Background Study Draft Report, April 2, 2020, please click here.
What Are Development Charges?
Development Charges means a fee imposed with respect to growth-related net capital costs against land. Under the new Development Charges Act, 1997, municipalities must undertake a background study. The Nation Municipality completed a background study (dated May, 2015), and passed development charge By-law No. 93-2015.
The purpose of a development charge is to generate adequate revenue to finance growth-related net capital costs for municipal services required because of growth. In essence, the development charge is designed to maintain the same average level of service offered to existing residents of the municipality. One might say it is similar to buying a corporate share (investment) in the municipality.
An example of the purpose of the charge would be as follows:
Forty additional dwellings are built in the municipality and there arises the need for an additional volunteer fire fighter. The development charge reserve fund could be used to fund the purchase of a bunker suit and communications equipment for that individual. The need for an additional volunteer fire fighter emerged from growth and now is charged back to growth through development charges.
Development charges may not be used for salaries, maintenance costs, operational costs, or replacement equipment and furniture.
Who must Pay Development Charges?
Development charges are imposed on all forms of development, with certain exceptions. The charges do not apply to accessory uses to residential uses including a garage, storage building, garden shed, swimming pool, small additions, or other similar uses.
Generally, development charges are only applied against new dwelling units or new non-residential buildings. The non-residential charge is pro-rated to account for economies of scale.
Non-residential development charges are prorated to reflect economies of scale.
Find out more about Development Charges here: https://nationmun.ca/en/our-council-staff/building-planning/