The County of Essex is considering the adoption of development charges to pay for growth-related expansion of the services it provides. It has hired Hemson Consulting Ltd. to conduct a study to forecast future growth, assess current service levels and determine the eligible growth-related costs of County services. The study is the first step in a process required for the County of Essex to adopt a Development Charges By-law.
The Background
The Development Charges Act, 1997, governs the collection of development charges. The intent of development charges is to ensure that infrastructure costs arising from increasing population and employment are fully funded by development that benefits from the introduction of new services (user-pays approach). Development charges have been established by municipalities to ensure that these costs are not borne by existing residents and businesses through property taxes or water/sewer rates.
A 2009 background for the County of Essex Official Plan recommended the County consider development charges as a method to ensure that developers bore the costs of growth-related needs in the region, rather than burdening residents with the expense.
One of the goals of the County of Essex Strategic Plan 2024-2027 is to help create the conditions to make the region a powerhouse in public and private investment attraction by providing reliable infrastructure for partners. To achieve this, the County will, among other things: “Explore sustainable funding and financing options for long-term infrastructure planning including the introduction of development charges to fund growth infrastructure.”
To date, the County has not had a Development Charges By-law and due to the amount of growth anticipated, it would be appropriate to have the ability to fund growth related services and infrastructure through the levy of fees to the benefitting new development.
For more background, read these reports:
May 15, 2024: Advancement of a County Development Charges Study and By-law
Nov. 6, 2024: Update on the County Development Charges Study and By-law
The Process
The initial phase of this endeavour involves commencing a Development Charges Background Study to establish a strategic road map for further action.
The Development Charges Background Study is required under the Development Charges Act to include:
- A forecast of the amount, type and location of future development;
- The average services levels provided by the County over the 15-year period immediately preceding the preparation of the background study;
- Capital cost calculations for each of the eligible development charge related services;
- An examination of the long-term capital and operating costs for infrastructure required to service the forecasted development; and
- The asset management plan to demonstrate that all assets included in the study are financially sustainable over the full life cycle.
The County must complete a Development Charges Background Study process to adopt a by-law to collect development charges. The Development Charges Background Study will need to be prepared in concert with local development charges by-laws regarding land needs and growth areas as well as attributable services.
The County Development Charges Study will assess County-wide services, including library, land ambulance, long-term care, roads and waste diversion. The study will need to determine if there are any components to any of these costs that are covered by the local municipality. For example, it will consider how much of the costs for libraries are covered by the local municipalities and how much by the county. The majority of the costs will be County-wide services; however, it may be appropriate to consider area specific services attributable to certain municipalities or large-scale greenfield areas where growth related road improvements will be necessary. The County will be relying on the consultant tasked with undertaking the Development Charges Study to make recommendations in this regard.
See the Nov. 6, 2024, presentation to Essex County Council by Hemson Consulting Ltd.
Frequently Asked Questions
Q: Why are development charges being considered?
A: Development charges ensure that new growth pays for the infrastructure needed to support it. This approach prevents the cost of expanding services from being passed onto existing residents and businesses.
A: Developers would be responsible for paying these charges. Depending on the arrangement, these costs may be passed on to homebuyers or businesses. This funding helps support the infrastructure required for new developments.
A: Charges would be based on factors such as forecasted growth in the region, the type of development, and the specific services required (e.g., roads, emergency services). A detailed study will determine fair and appropriate rates.
Benefits and Impacts
- Improved Infrastructure: Development charges will help fund the expansion of critical services like roads and emergency services, leading to better service for everyone.
- Sustainable Growth: Development charges ensure that as the population grows, necessary infrastructure keeps up, avoiding undue strain on existing services.
- Fair Funding: Developers and new residents contribute to the cost of services they directly benefit from, rather than placing the burden on current residents.
What Happens Next?
The study will assess the potential impacts and benefits of introducing development charges. Public input is an essential part of this process, and we are committed to keeping residents and the development community informed every step of the way.
The Timeline
To ensure a structured approach to the Development Charges Study and By-law process, a timeline for completing tasks has been established and is shown below.
Milestone | Dates |
---|---|
Data collection, staff review, development charges calculations and policy work | November 2024 to February 2025 |
Meeting with local municipal administration | April/May 2025 |
Stakeholder meeting | April 2025 |
Public release of Development Charges Background Study and Policy Recommendations | April 2025 |
Public meeting advertised | April 2025 |
Data Tables Released to County Council at Council Meeting | March/April 2025 |
Council considers adoption of the background study and passage of the by-law | End of May 2025 |
Public notice given if the by-law is approved | By 20 days after council approval |
Last day for by-law appeal | 40 days after passage |
County makes pamphlet available | By 60 days after in force date, unless there is an appeal |
How to Stay in Touch
Join our project notification list by contacting County of Essex Development Charges Study Project lead, Melissa Ryan, Director, Financial Services/Treasurer at mryan@countyofessex.ca.
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