Gravenhurst Council advised about new changes to Development Charges
Gravenhurst Council was advised of about new changes to development charges, in the August 13, 2024, meeting.
Gravenhurst Council was advised of about new changes to development charges, in the August 13th meeting.
The Development Charges Background Study presented by Andrew Mirabella, of Hemson Consulting, advised that the DC By-law which was previously in place for 5-years will now be enforced for 10 years.
He also summarized the new framework and changes for “Growth-Related” Capital, as follows:
Development Charges Act (DCA) changes include services that have been removed for what’s eligible, including parking, cemeteries, and airports. He said, “There’s also a removal of the statutory 10% discount… In previous DCs there was a co-funding requirement from taxes on certain services. That 10% reduction on growth related costs has now been removed. So, to the extent that the project is growth related, the entirety of it can be funded from DCs without having a tax supported contribution to it.”
The Planning Act: Community Benefit Charges (CBCs) must now be imposed on high density development only, such as units with 5 or more stories or a minimum of at least 10 housing units.
The Planning Act: Parkland Acquisition is at a standard 5% rate for residential units and 2% for non-residential.
Other changes since the 2019 By-law include various Bills being passed, including Bill 108, Bill 197, Bill 23, and Bill 185.
Bill 23 includes changes to the Development Charges Act (DCA) with exemptions that allows for additional units in rental housing, residential infrastructure in existing units, non-profit housing, and inclusionary zoning provisions for affordable housing.
Bill 185, passed last June, reversed changes from Bill 23, such as removing the 5-year phase in. Mirabella said, “It’s not required to be done at the Town level in the new By-law.”
“Growth-Related” studies were removed as a capital costs and reintroduced as DC-eligible Costs.
Another provision is a reduction in the timeframe for frozen DC rates, which changed from 2-years to 18 months for approval.
DC exemptions apply to affordable and attainable housing. However, Mirabella explained, “There is still no mention of how attainable exemptions will be identified.”
Mirabella also provided Council with a development forecast for the Town. The total number of residential dwellings (including seasonal) in 2024 is 9,092, with a population of 25,908. A growth increase is expected to be 1,266 for residential dwellings, and 2,780 for population. Between 2024-2034 residential dwellings are expected to reach 10,358, with a population of 28,688.
Costs for what’s funded by DCs in the planning period include $2,581 for Fire, $7,768 for Parks and Recreation, $3,153 for Public Works, and $1,779 for Roads and Related.
Mirabella said, “Over the period for all the different services that we have, we have about $18 million in DC funded costs going to be funded through the DC By-law over the 10-year planning period.”
He continued that key projects driving development include Fire Station #2 Rebuild and Upsize, Library expansion, Parks and Recreation remaining growth-related debt for Aquatic Centre, three new playgrounds, new washrooms, expansion of existing and additional amenities (i.e. pickleball courts, skate park, splashpad and trail development), Public Works’ new 35,000 square foot facility, and Roads.
Councillor, Peter Johnston, inquired about whether there was a “financial advantage” to working within a 10 versus 5-year term. He also indicated that changes are advancing more rapidly and expressed concern about potential “missteps” that could occur with 10-year assumptions about the future.
Mirabella advised that the timeframe is more of an advantage to administration than financially. He added, “I would really encourage you to evaluate your background study at 5-year term to see how much things have changed and if there’s a need to open it up.” He said that Council can update it early due to costs, growth, new infrastructure, and updating services.
