The purpose of Regional development charges is to assist in financing the growth-related costs associated with the capital infrastructure needed to service new development.
Development charges place the cost of growth on new development itself, rather than increasing the burden on existing taxpayers or utility rate-payers.
Development Charges Help Finance Growth-Related Capital Costs
Development charges are one time fees and do not contribute to any of the operating costs associated with operating and maintaining the new infrastructure.
The services that development charges contribute to include:
- Police Services
- Emergency Medical Services
- Related Studies
Development Charges are Collected by Local Municipalities
Regional development charges are collected by the local municipalities on behalf of the Region. Each local municipality is responsible for setting rates for its own development charges and for determining exemptions.
Regional development charges are calculated and payable on the date a building permit is issued for a development.
Development Charge Rate Calculation
Regional development charges are calculated based on several pieces of information in accordance with the provisions of the Development Charges Act.
- Types, locations and amounts of projected growth that will occur over a specified period of time, usually 10 years
- Infrastructure services required over the same time period to accommodate the projected growth
- Estimated costs of the services to be provided by the Region
- Portion of the total cost to be paid by the existing population which will benefit from new infrastructure - growth is expected to pay only for the portion of the infrastructure that it requires
- Relative impact of each type of growth (residential, commercial and industrial) on the services
- Total cost assigned to each type of growth is converted to either a per-unit or per-square foot charge that can be easily applied to individual developments as they occur
Development Charge Rate Application
Regional development charges are currently calculated and applied on a uniform Region-wide basis.
- Residential development or the residential portion of a mixed-use development incurs a charge based on the number of and type of dwelling units
- Non-Residential development incurs a charge based on the gross floor area of the development
- Mixed-Use development incurs a charge based on the floor area of each different component (industrial, commercial, etc.)
Credits and exemptions for certain types of residential and non-residential development and specific locations may also apply.