If you are building a new house, building or expanding a non-residential building or submitting a planning application, you will likely need to pay development charges. Development charges are one-time fees paid by developers at the time a building permit is issued to help pay for municipal services to new developments, such as:
The passage of Bill 23, More Homes Built Faster Act, 2022, on November 28th, 2022, stipulated that Municipal development fee rates for residential, commercial and industrial projects shall be subject to a 5-year phased in collection rate starting at 80% the first year and incrementally increasing by 5% per year. The Municipality passed a development charge amendment By-law on April 5th, 2022, which in consultation with Watson & Associates Economists Ltd served as the starting point for this reduction.
The Council of the Corporation of the Municipality of Trent Lakes passed amending By-Laws No. B2024-083, B2024-084 and B2024-85 to the municipal-wide Development Charges By-Laws No. B2024-025, B2024-026 and B2024-027 on the 5th day of November 2024 under section 2 (1) of the Development Charges Act, 1997, S.O., 1997 c. 27, as amended;
The Council of the Corporation of the Municipality of Trent Lakes passed amending By-Law B2024-091 to the municipal-wide Development Charges By-Law B2024-027, as amended, on the 19th day of November 2024 under Section 2 (1) of the Development Charges Act, 1997, S.O., 1997 c. 27, as amended.
As per the Cutting Red Tape to Build More Homes Act, 2024 (Bill 185), which amended the Development Charges Act, 1997, growth-related studies can be included as development charge eligible costs by amendment to the by-law(s), with the passage of an amending by-law.
You may also need to pay the following development charges to the County of Peterborough:
Peterborough Victoria Northumberland and Clarington Catholic District School Board - By-law
Kawartha Pine Ridge District School Board - By-law
View the 2024 Development Charges statement here.
The principle behind development charges is that growth should pay for growth. Development charges ease the financial burden on existing taxpayers to fund new services as a result of growth. Without development charges, the costs for additional infrastructure would be at the expense of existing property owners in the form of higher property taxes and user fees. Development charges are used by most municipalities in Ontario.
The Development Charges Act, 1997 provides the legislative authority for the collection of development Charges.
The Development Charges Act, 1997 provides Council with the authority to pass a by-law to impose development charges. The Act requires that a Development Charges Background Study a new Development Charges By-law must be completed at least once every five years.
The Background study takes the following into account:
The Act also requires that the municipality must hold at least one Public Meeting to present the updated Development Charges Background Study and proposed Development Charges Rates. Once all of the requirements are met a new By-law is passed based upon the results of the Background Study.
The Act and the By-law provide for an annual adjustment, in January of each year, of development charge rates. The Act and the By-law also provide exemptions for certain types of development. The Development Charges By-law should be a reviewed for these exemptions.
Funds collected for development charges must be held in a separate Reserve Fund for each service to which the levy applies. For example, funds collected for roads must be held in a Development Charges for Roads Reserve Fund. These funds can only be spent on paying for the growth-related capital costs for which the funds are intended. For example, the funds collected for roads can only be spent on growth-related capital costs for roads. Development charges may not be used to fund operating costs.
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