District of Muskoka delays new Development Charges By-law due to water system grant
The District of Muskoka announced a delay in the new development charges By-law due to a water system grant, in the September 16, 2024, Council meeting.
In an update to Council on development charges, Director of Tax Policy and Long-term Financial Planning, Vineet Bhatia, announced that the District received a Housing-Enabling Water System Fund (HEWSF) from the Ontario government, which will impact establishing the new Development Charges (DC) By-law.
He said it will result in “a 3% reduction in DC rates in the urban service area.”
According to the provincial government website, “The HEWSF will help municipalities develop, repair, rehabilitate and expand critical drinking water, wastewater and stormwater infrastructure.”
It also indicates that the initiative will help create more housing opportunities, protect communities, address the increasing population, and support economic growth.
It adds that the first application intake resulted in a $970 million investment to 60 municipalities in the province, supporting 500,000 new homes.
It continues, “In response to the high demand for funding, we are investing an additional $250 million for a second intake of applications, bringing the total investment for the total program to 1.2 billion.”
The second application intake is open from now until November.
Bhatia advised Council that staff will present the new Draft 2025 Development Charges By-law next month.
He indicated that one public meeting has already been held, which was this month, and that staff was advised by the consultant not to hold a second one because the rates are being lowered, therefore, “it’s not necessary.”
He also said the report is available for public viewing on the District website, and the development community can reach out to staff directly for further information.
Chair, Jeff Lehman, expressed, “The report was remarkable in many ways.” He indicated this will have a positive impact because it means DC charges will help with project costs.
He added that water bills would fall under ownership costs, “now it’s spread across the taxpayers of all of Ontario who will have to pay for that.”
