Development Charges and Fees

The Province sets strict rules for Development Charges and municipalities must follows them

Development Charges are one-time fees. The Province’s Planning Act allows municipalities to collect these charges to ensure growth pays for growth – not taxpayers. However, that doesn’t mean existing residents don’t contribute as well. They help pay for the ongoing costs for the new parks and infrastructure through their annual property tax bill and service fees.

Here are a few of the checks and balances for Development Charges:

• Municipalities follow a fair and detailed process to determine the amount of Development Charges and Parkland Cash-in-Lieu a developer is required to pay.
• This process is outlined in the Planning Act and Development Charges Act.
• The amount is calculated using long-term growth projections in consultation with the development industry.
• Municipalities can only collect Development Charges for the percentage of the costs that apply to new growth. For example, since new infrastructure benefits existing residents, the amount of Development Charges we can collect for it must be reduced so that the benefit to existing taxpayers is not included in the calculation.
• Development Charges must be used in a set timeframe and can only be used to pay for the infrastructure, parkland and services needed for new growth – nothing else.
• The Province controls when and how municipalities can increase Development Charges and parkland fees.

Developers still earn a profit with or without Development Charges

Development Charges make up a small percentage of overall building costs but have a huge impact on the quality of life in a community.

According to a July 2022 study by the Canada Home and Mortgage Corporation, developers typically earn between 10 and 15% profit once all other costs, including government fees, are paid.

Developers price housing based on what the market will pay. If municipalities reduce fees, there is no guarantee that developers will lower the price of housing or pass any savings on to homeowners.

Reserves are important when planning for community infrastructure and are permitted by the Planning Act

The development charges (DC) the County collects ensure service levels and community livability are maintained as the County grows.

We only collect what is needed for growth (in accordance with the Planning Act) and manage our reserves carefully. The aim is to:

• Make sure we build infrastructure and services at the most appropriate and cost-effective time to support new growth.
• Report annually on DC reserves and activities ensuring transparency under the Act. 

The fees collected go into reserves that are assigned to projects in the County’s capital plan. These are large projects that keep the County running and make it more livable.

Reserve funds must be spent in a set timeframe. The County’s capital budget and plan are public documents that are discussed publicly every year during Budget negotiations.