Proposed Regulation Under the Development Charges Act, 1997
Regulation - LGIC
Bill or Act:
Bill 73 - proposed Smart Growth for Our Communities Act, 2015
Summary of Decision:
Amendments to O. Reg. 82/98 (General) (Development Charges Act, 1997) came into effect on January 1, 2016.
October 15, 2015
Summary of Proposal:
The Ministry of Municipal Affairs and Housing (MMAH) is proposing a new regulation under the Development Charges Act if the proposed Smart Growth for Our Communities Act, 2015 is passed by the Legislature and receives Royal Assent.
Development charges are cost recovery tools designed to help municipalities in paying for growth-related infrastructure costs for services like roads, water and wastewater, and libraries. They do not pay for operating costs or the future repair and rehabilitation of infrastructure. Approximately 200 municipalities levy development charges, primarily in southern Ontario.
If Bill 73 is passed, the proposed amendments would:
Prescribe services for which costs are not recoverable through development charges. The services would include all those in the list of ineligible services in the existing Development Charges Act except for waste management which would be replaced by an exclusion of landfills and incineration of waste.
Prescribe transit as a service for which a forward looking level of service would be used in calculating development charges.
Prescribe a methodology for the calculation of a forward looking service level for transit over a ten year planning period based on the level of service council intends to provide as a result of increased need arising from development.
Prescribe requirements for development charge background studies, including requirements for asset management plans, to, among other matters, identify post-period benefits and benefits to existing residents in relation to transit services.
John Ballantine, Manager
Ministry of Municipal Affairs and Housing
Municipal Finance Policy Branch
13th Flr, 777 Bay St
Toronto ON M5G2E5
January 1, 2016