Development charges: Councillors brought up to speed on costs

By MIRIAM KING QMI AGENCY January 25 2011
INNISFIL — Development charges in the town are not the lowest in the area, Innisfil councillors were told recently.
Development charges are levied on new residential, commercial and industrial development to help pay for growthrelated infrastructure.
Under 1997 legislation, DCs can no longer be levied for items like cultural facilities, tourism, hospitals, or administration costs outside of consultants’ studies.
Director of Finance Lockie Davis noted that charges are different, depending upon whether a property is on municipal services, and where it is located. With two wastewater systems and a total of eight municipal water systems, the charges vary greatly.
The charges are $30,899 for a home built in Alcona; $31,651 for Innisfil Heights; $34,590 in Cookstown; $34,665 for Lefroy, and a whopping $61,904 in Gilford, reflecting the high cost of servicing and the low development potential of the area.
“You’re clearly at the higher end of those charges,” Davis told councillors at a special meeting, comparing the fees to neighbouring municipalities.
But without those charges, growth-related charges will fall on the taxpayers.
And while 100% of growthrelated engineered projects — water, wastewater, roads and expansion of protection services — is recoverable through DCs, the town can only recover 90% of the cost of other projects, such as libraries, studies, park development, fleet procurement and indoor re c reation.
Ten per cent is considered a benefit to existing residents, and recoverable through taxes or other funding sources.