District increases development charges based on forecasted 8% population growth
The District of Muskoka Council approved the 2025 Development Charges (DCs) By-law, in the October 21, 2024, meeting.
Anticipated development will be reflected in the new DCs due to increasing population growth, according to the agenda.
It indicates, “The District Municipality of Muskoka is expected to experience 8% growth in it’s permanent population base between 2021 to 2026 and another 7.4% between 2026 to 2031 and as a result there will be an increased need for development and redevelopment.”
It adds that an expansion of District services will be required to accommodate the development, which will result in an increase in capital costs.
According to the staff report, the District is “proposing to impose DCs” to services, including transportation, ambulance, long-term care, waste diversion, transit, water, wastewater, and septic.
It indicates that the District may also pass By-laws to adjust for the increase in capital costs resulting from the anticipated growth.
The District completed its Development Charges Background Study, prepared by Watson and Associates Economists, and provided notice of its DC proposal in its public meeting last August.
The report adds that the province has also amended the DC Act to include discounts on “purpose-built rental development and exempt development charges for non-profit housing developments and qualifying affordable and attainable residential developments.”
It continues that the District has also approved a plan that will provide incentives on behalf of the Affordable and Attainable Housing Investment Framework 2024-2029 at $19.5 million spanning over 5 years, to initiate the development of 210 more affordable and attainable housing units.
Commissioner of Finance and Corporate Services, Suzanne Olimer, added that changes include a 7% decrease in the rural area, and a 29% increase for single detached units in the urban area.
Councillor, Nancy Alcock, suggested that the changes might be challenging for developers in Huntsville.
Director of Tax Policy and Long-term Financial Planning, Vineet Bhatia, indicated that developers he spoke with found the increases “reasonable.” He added, “Rate increases are a challenge regardless.”
Alcock expressed appreciation that the increases weren’t more. She said, “What could have been 50% is only 29%.”
Councillor, Rick Maloney, expressed appreciation for the By-law. He said, “I appreciate seeing something as really laser focused on addressing the needs we have seen as community leaders and also what we hear from community members about affordable and attainable housing.”
He added that it’s something more “tangible, where we can actually see results from.”
Staff will also develop a pilot program “to provide forgivable loans to first time home buyers by March 31, 2025,” continues the report.
It adds, “The funds will come from the attainable market-based housing stream of the Affordable and Attainable Housing Investment Framework 2024-2029.”
