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3. That City Council INDICATES ITS INTENT to ensure that the increase in the need for services attributable to the anticipated development, including any capital costs, will be met, by updating its capital budget and forecast where appropriate;
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4. That City Council INDICATES ITS INTENT that the future excess capacity identified in the Development Charges Background Study, dated November 5, 2020, prepared by Hemson Consulting Ltd., shall be paid for by development charges or other similar charges;
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5. That no further public meeting pursuant to Section 12 of the Development Charges Act, 1997 IS NECESSARY prior to the passage of Bylaw #XX-2021.
Executive Summary:
Development charges are a very important component of a municipality’s capital budget funding strategy. Capital projects relative to roads, sewers, libraries, community centres, etc., can be projects that aim to maintain the existing infrastructure in good condition or expand the existing infrastructure for growth related needs.
If development charges are inadequate to pay for the growth related capital costs, the only alternative is to subsidize that growth by increasing the property taxes of existing taxpayers or to reduce expenditures (which then results in a degradation of service, as roads are not maintained as well, etc.). In reality, both of these scenarios normally play out. The 2020 Capital Budget details projects costing hundreds of millions that are unfunded and have a significant growth component.
Higher property taxes and/or lower service levels (inadequate infrastructure, etc.) will also negatively impact the ability to attract new investment or retain existing ones.
The recommended DC rates for City-wide and the Sandwich South Planning District are shown in the following table. The recommendation for the industrial rate is to have it remain at zero, while the core area, as defined in Appendix C, is recommended to be exempt from DC Fees.
| City Wide (except for Sandwich South Planning District) | ||||
|---|---|---|---|---|
| Current Rate | Calculated Rate | Difference in Charge | ||
| Single Detached | $30,053 | $30,488 | $435 | 1% |
| Semis, Rows | $21,335 | $17,158 | $(4,177) | -20% |
| Other Residential | $14,366 | $14,110 | $(256) | -2% |
| Non Residential - Commercial | $142.89 | $146.68 | $3.79 | 3% |
| Non-Residential - Industrial | $- | $- | $- | N/A |
| Sandwich South Planning District Area Specific Rate | ||||
| Current Rate | Calculated Rate | Difference in Charge | ||
| Single Detached | $44,196 | $47,735 | $3,539 | 8% |
| Semis, Rows | $29,887 | $26,856 | $(3,031) | -10% |
| Other Residential | $21,198 | $22,091 | $893 | 4% |
| Non Residential - Commercial | $174.09 | $212.10 | $38.01 | 22% |
| Non-Residential - Industrial | $- | $- | $- | N/A |
The calculated City-wide residential charge per single detached unit represents a marginal increase of 1% over the current charge, while the calculated non-residential, commercial charge represents an increase of 3%. The Semis, Rows category is showing a large reduction due to a