Nancy Neale, Manager, Watson & Associates Economists Ltd., provided an overview regarding proposed amendments to the existing Development Charges By-Law in order to meet the requirements of the Development Charges Act as recently amended by Bills 108, 197, and 213.
A summary of the legislative changes include:
- The legislation has removed the mandatory deduction for all services that remain eligible in the D.C. For the Town, the 10% deduction may be removed for the following services: being Indoor and Outdoor Recreation Services; Library Services; and Administration (Growth Related Studies).
- The listing of eligible services has been changed by the amending legislation however, for the Town this does not impact the services that are eligible for recovery.
- An additional change brought forth through Bill-197 related to establishing classes of services. A class of service may be composed of any number or combination of services and may include parts or portions of each D.C.-eligible service. As a result of these changes to the D.C.A., this addendum report provides for Growth Studies (formerly two categories of Administrative Studies) as a class of service and Public Works (Facilities, Vehicles and Equipment) as a class of service.
- The regulations have provided an additional mandatory D.C. exemption for an added dwelling unit in new residential buildings as well as related for universities. These exemptions are to be added to the Town’s D.C. by-law.
- Further changes related to the timing of payments for rental housing, institutional and non-profit development were proclaimed through Bill 108. Additionally, the D.C. amount for all developments occurring within 2 years of a Site Plan or Zoning By-law Amendment planning approval, shall be determined based on the D.C. in effect on the day of Site Plan or Zoning By-law Amendment application. If the development is not proceeding via these planning approvals, then the amount is determined as the earlier of the date of issuance of a building permit or occupancy.
Ms. Neale stated that this D.C. update study provides for proposed amendments to the Town’s current D.C. by-law (By-law 1850) based on the legislative changes and includes:
- Updating the D.C. analysis to remove the 10% mandatory deduction;
- Creating classifications for Growth Studies and Public Works as classes of services;
- Updating the D.C. policies in the by-law with respect to: o D.C. instalment payments;
- D.C. rate freeze;
- Mandatory exemption for new ancillary units and universities; and
- Updated definitions (which have been established as part of Bills 108 and 197).
Ms. Neale went on to advise that prior to Council’s consideration of a by-law, a background study must be prepared and available to the public a minimum 60 days prior to the proposed amending Development Charges by-law.
Councillor Bjorkman asked if there was a limit on the interest rate that can be charged on installment payments.
Ms. Neale stated that the Developmental Charges Act has not imposed a set interest rate and that each municipality can decide the percentage to impose on the installment payments.
Kate Giurissevich, Manager, Finance and Business Services, replied that the Town typically charges interest at prime plus 2%.
Ms. Neale stated that the Developmental Charges Act has not imposed a set interest rate and that each municipality can decide the percentage to impose on the installment payments.
Kate Giurissevich, Manager, Finance and Business Services, stated that the Town typically charges interest at prime plus 2%.