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Council told provincial pressure on development charges could shift costs to local taxpayers
Summary
Councilor Dave Hawking asked about development charges; treasurer Yelena Savick said the wastewater-treatment expansion is the primary DC-eligible item and that provincial reductions and changing eligible costs create pressure, with a consultant report due later in the year.
Councilor Dave Hawking asked for an update on the town's development charges (DC) review during the asset-management presentation. Savick responded that DCs are "very, very tricky," that the wastewater-treatment-plant expansion was the main DC-eligible capital project in the asset plan, and that the province is considering reductions to DCs and changes to eligible costs that would reduce what municipalities can collect from developers.
"The theory behind development charges is that growth pays for growth," Savick said, then described how DC rates are calculated from a background study that lists growth-related projects and divides costs by anticipated growth. Savick told council consultants are conducting departmental interviews and developing spreadsheets and that staff expect a more concrete DC-rate recommendation by the end of the year. She warned that if provincial policy reduces DC-eligible costs or collection rates, the town may need to offset the shortfall with tax or reserve funding and noted an equity concern: reductions in DCs shift more costs to existing taxpayers who do not benefit from the new development.
Council did not take immediate action; staff will incorporate consultant findings into a future report for council consideration.
