This was originally posted to Steve’s Facebook Page April 6, 2022. The information presented was accurate as of that date, however changes may have occurred since then.

I often hear questions about how the County pays for services, especially those related to growth:

Does Growth indeed pay for Growth?

The answer is found under the umbrella of Development Charges. This is a topic most people are not familiar with, and as I came into this term eager to learn more about and share all aspects of our Municipal operations, here is a crash course in Development Charges and what they can and cannot be used for.

(Don’t worry, there will be no quiz later)

What are Development Charges?

When growth occurs in the County, there are costs to provide services to the development. Development Charges are a tool by which municipalities can recover costs associated with this growth, proportionate to the size and scale of the project. These costs sometimes require an upfront investment by the municipality in order to allow the project to proceed (i.e. construction of a water tower or pumping station to service the development) or they may contribute to future projects (i.e. the need for additional library space or a new fire station location).

How Does the Municipality Establish Development Charges?

Development Charges are established by by-law, based on a Background Study that considers the proposed growth rate for the area, the capital investments the municipality will have to make to serve that proposed growth and the number of units of growth that would be paying development charges over that period. Only projects identified in this Background Study can be paid for through Development Charges.

The County of Brant’s Development Charge Background Study and By-law were completed in 2019 and updated in 2021 to reflect changes in legislation. The next Background Study and By-law will be prepared for Council’s consideration in 2024.

What Types of Services are Paid for Through Development Charges?

County-wide Development Charges cover a range of municipal services that are available to all residents, including roads, emergency response, parks and recreation, administration, libraries and social services.

Urban Area Development Charges are assessed for water, stormwater and wastewater, but only apply to development in an area where these services are available.

Boards of Education may establish their own Development Charges to offset the cost of additional schools required as a result of development and growth. These are covered under a separate act and with their own rules and regulations.

What Can’t Development Charges be Used For?

Development Charges cannot be used to pay for any capital project not identified in the Background Study. Also, any service not specifically allowed under Provincial Legislation cannot be funded from Development Charges. Examples include hospitals, waste management, cultural and entertainment facilities.

Development Charges also cannot be used to pay for any services / costs that are fully the responsibility of the developer. For instance, where the developer is responsible for all internal services and road systems, the County’s development charges cannot be drawn upon by the developer to do these works.

Most capital projects that the County undertakes to service growth has some benefit to existing landowners (i.e. all residents benefit when there are new recreation facilities built or additional water supply in one area relieves pressures on the rest of the system). This is captured in a “benefit to existing” percentage applied to each project that must be funded from the tax levy or user fees.

At What Stage of Development are Development Charges Paid?

Development Charges are typically calculated and paid as part of the building permit process. The municipality and the owner may enter into an agreement for a different payment schedule, typically to allow a developer to pre-pay for a number of lots rather than lot-by-lot for a large-scale development.

Exemptions

Several types of development are exempt from Development Charges, including:

• Industrial building additions up to 50% of gross floor area
• Buildings for municipal, school board, university or local board use
• Enlargement of an existing dwelling – up to two (2) additional units
• Non-residential farm building
• Farm bunkhouse
• Additional dwelling in a new residential building

Current Charges

The Development Charges for a new single or semi-detached unit are $22,717 for County-wide charges, plus $14,930 for urban services (where applicable). There are reduced per-unit charges for apartments and other multiple-unit dwellings.

The Development Charges for a non-residential development are $44.13 per square metre of gross floor area, plus $47.25 per square metre for urban services (where applicable).