Council Approves Updates to Development Charges By-Law

JASON SETNYK
Council Approves Updates to Development Charges By-Law
Mayor Justin Towndale at a City Council meeting. (Photo : Photo: Jason Setnyk)

At the November 12 City Council meeting, members approved proposed amendments to the Development Charges (DC) By-Law and the Development Charges Interest Policy, implementing recent legislative changes brought by Ontario’s Cutting Red Tape to Build More Homes Act (Bill 185). The updates aim to improve the city’s ability to fund infrastructure and services necessary to support Cornwall’s growth by adjusting how development charges are collected and calculated.

Development Charges (DCs) are fees levied on new developments to offset the cost of growth-related infrastructure, such as roads, water systems, and public services, ensuring that “growth pays for growth.” Traditionally, municipalities phased in DCs over five years to lessen the financial impact on developers. However, Bill 185 repealed this requirement, allowing municipalities to collect the full charges immediately upon approval, providing a faster revenue stream to fund infrastructure for growing communities.

Sean-Michael Stephen of Watson & Associates Economists Ltd., who presented virtually to the council, explained the advantages of theseamendments. “With the streamlined amendment process, the city can now incorporate study costs into DC calculations without the need for additional public consultation,” Stephen noted. This inclusion enables the city to recoup costs associated with studies required to plan and implement growth-related infrastructure effectively.

Under the new rules, the city can also now charge developers for previously ineligible costs, such as master planning and environmental assessments, which had to be covered through other funding sources. By shifting these costs into the DC framework, Cornwall expects to reduce its reliance on tax-based funding for development planning.

In addition to these adjustments, the city’s interest policy on deferred DC payments has also been revised. Previously set at prime plus 3%,the maximum interest rate is now capped at the average prime rate plus 1%, aligning it more closely with prevailing economic conditions. The Financial Services Department will finalize and implement these changes, with updated documents expected by January 1, 2025.

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