Act
Amendment to the Development Charges Act, 1997 to extend the 10-year planned level of service to 20 years for the Yonge North Subway Extension (YNSE)
Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
Development Charges Act, 1997
Summary of Decision:
-On December 2, 2021 Bill 13, the Supporting People and Businesses Act, 2021 received Royal Assent and made changes to the Development Charges Act (DCA). These changes will come into force on January 1, 2022.
-The changes extend the 10-year transit planning horizon under the DCA to 20 years for the Yonge North Subway Extension (YNSE).
-The new legislative provisions would treat the YNSE separately from other transit services, for the purposes of calculating and collecting development charges (DCs).
-These changes will better position York Region to fund its portion of the YNSE costs, by enabling more of the eligible growth-related costs of the YNSE to be recovered through DCs.
-The changes extend the 10-year transit planning horizon under the DCA to 20 years for the Yonge North Subway Extension (YNSE).
-The new legislative provisions would treat the YNSE separately from other transit services, for the purposes of calculating and collecting development charges (DCs).
-These changes will better position York Region to fund its portion of the YNSE costs, by enabling more of the eligible growth-related costs of the YNSE to be recovered through DCs.
Analysis of Regulatory Impact:
-The amendment aligns with the government's commitment to make Ontario "Open for Business," and to create the conditions for the economy to generate good jobs. Building subway lines will help get Ontarians to work faster, to home sooner, and to family and friends more quickly. Better public transportation will also help connect businesses and workers to greater opportunities across the Greater Toronto Hamilton Area (GTHA).
-This change will better position York Region to sustainably fund its portion of the YNSE costs, by enabling more of the eligible growth-related costs of the YNSE to be recovered through DCs over the next twenty years.
-This amendment to the DCA would enable growth to pay for growth. It would help ensure that more of the growth-related costs for the subway would be funded by DCs as opposed to other municipal revenue sources.
-This change will better position York Region to sustainably fund its portion of the YNSE costs, by enabling more of the eligible growth-related costs of the YNSE to be recovered through DCs over the next twenty years.
-This amendment to the DCA would enable growth to pay for growth. It would help ensure that more of the growth-related costs for the subway would be funded by DCs as opposed to other municipal revenue sources.
Further Information:
21-MMAH023 - Proposed new regulatory provisions to implement proposed amendments the Development Ch
Proposal Number:
21-MMAH028
Posting Date:
October 7, 2021
Summary of Proposal:
Development charges (DCs) are discretionary fees that municipalities may levy on new projects or redevelopment to help pay for the capital costs of infrastructure to service new growth (e.g., roads, water, wastewater, electrical, power, libraries). The current rules under the Development Charges Act (DCA) allow municipalities to calculate eligible DC costs for transit using a 10-year planned level of service. These rules impose a 10-year forward looking planning horizon for transit services as municipalities cannot exceed this 10-year planned level of service in calculating what they can charge.
In 2020, the "Ontario-York Region Transit Partnership" was formalized through the Ontario-York Region Transit Partnership Preliminary Agreement to support the delivery of the YNSE. The YNSE is to be cost shared between the federal, provincial and municipal levels of government with York Region's share of capital costs estimated to be approximately $1.1 billion. Through this agreement, the Province has committed to work with the Region by providing enhanced flexibility to sustainably fund their share of the YNSE capital costs. York Region has identified that without provincial action, it would be challenged to fund its contribution of the total costs of the YNSE.
The province is proposing to extend the time horizon for the planned level of service for the YNSE under the DCA from 10 to 20 years. This proposed amendment would treat the YNSE separately from other transit services for the purposes of calculating and collecting DCs. This proposed change would better position York Region to fund its portion of the YNSE costs, by enabling more of the eligible growth-related costs of the YNSE to be recovered through DCs.
York Region's DC by-law will expire in 2022 and the DCA requires the municipality to pass a new by-law if it wishes to continue to charge DCs. As a result, the proposed changes to the DCA would help inform the development of the Region's 2022 DC by-law, including the calculation of DCs for the Yonge North Subway Extension (YNSE). By extending the 10-year planning horizon to 20 years, the Region could calculate DCs in their upcoming 2022-27 by-law based on more of the total eligible YNSE costs.
The YNSE is a priority project for both the Province and Region which will help create thousands of jobs, provide more housing options for people, and open opportunities for businesses.
In 2020, the "Ontario-York Region Transit Partnership" was formalized through the Ontario-York Region Transit Partnership Preliminary Agreement to support the delivery of the YNSE. The YNSE is to be cost shared between the federal, provincial and municipal levels of government with York Region's share of capital costs estimated to be approximately $1.1 billion. Through this agreement, the Province has committed to work with the Region by providing enhanced flexibility to sustainably fund their share of the YNSE capital costs. York Region has identified that without provincial action, it would be challenged to fund its contribution of the total costs of the YNSE.
The province is proposing to extend the time horizon for the planned level of service for the YNSE under the DCA from 10 to 20 years. This proposed amendment would treat the YNSE separately from other transit services for the purposes of calculating and collecting DCs. This proposed change would better position York Region to fund its portion of the YNSE costs, by enabling more of the eligible growth-related costs of the YNSE to be recovered through DCs.
York Region's DC by-law will expire in 2022 and the DCA requires the municipality to pass a new by-law if it wishes to continue to charge DCs. As a result, the proposed changes to the DCA would help inform the development of the Region's 2022 DC by-law, including the calculation of DCs for the Yonge North Subway Extension (YNSE). By extending the 10-year planning horizon to 20 years, the Region could calculate DCs in their upcoming 2022-27 by-law based on more of the total eligible YNSE costs.
The YNSE is a priority project for both the Province and Region which will help create thousands of jobs, provide more housing options for people, and open opportunities for businesses.
Contact Address:
Avril Bundale
Municipal Finance Policy Branch
13th Flr, 777 Bay St
Toronto, ON M7A 2J3
Municipal Finance Policy Branch
13th Flr, 777 Bay St
Toronto, ON M7A 2J3
Royal Assent Date:
December 2, 2021
Decision:
Approved