On December 14, 2020 the Township of Otonabee-South Monaghan approved By-Law No. 2020-60, which imposes development charges on new developments. The fees collected from new development offset the costs of providing existing levels of service such as general government, fire and emergency services, public works, recreation and library.
These development charges are put in place so that taxpayers are not responsible for the capital costs of new growth in the Township. At the same time, new taxpayers should not have to pay more than the net capital cost in order to maintain current levels of municipal services.
A detailed analysis of the Township's infrastructure is therefore necessary to ensure that the recommended Development Charge is compatible with the requirements of the Development Charges Act and its Regulations. This DC Study is updated every five years to ensure that DCs reflect anticipated growth and capital needs. By-law No. 2020-60 repeals and replaces By-law No. 2015-58.
Development Charges do not relieve subdividers or property owners from the costs associated with providing any local or on-site services required under a development agreement with the Township, any local improvements or any user fees.
| When are Development Charges required? |
|
Generally, a development charge will be imposed on any new residential and expansions exceeding the legislated exemptions. Development charges also apply to non-residential development. Development charges are payable at the time a building permit is issued unless Council has entered into a written agreement providing for payment on any date that Council decides is appropriate. |
| When is Building Permit exempt from Development Charges? |
| Eligibility for an exemption is governed by the Development Charges Act and its regulations. Certain expansions of existing buildings are exempt by statute such as secondary unit added to an existing dwelling or small industrial expansions. School Board, Township, County and certain local board properties are also exempt from Development Charges. No charge is imposed on industrial, agricultural or religious uses. If a building has been destroyed or legally demolished, no development charge is imposed if the building is rebuilt within a period of five years of the date of demolition or destruction. If a different type of building is built on the site, a credit would apply based on the original building and use.
If a Lot Levy has been paid in full prior to the date this DC By-law received third reading, the difference between the Lot Levy paid and the DC amount determined under this By-law is payable. Conversions of an existing structures to a residential use will also require a calculation of any DCs payable, subject to a credit based on the current non-residential rate. |
Development Charge amounts
The Township Development Charges under By-law No. 2020-60 which are phased in as follows:
Residential Development Charges
All dwelling units
| Year | Rate |
|---|---|
|
Date of Passing to December 31, 2015 |
$4,147. |
|
January 1, 2016 to December 31, 2016 |
$4,714. |
|
January 1, 2017 to December 31, 2017 |
$5,280. |
|
January 1, 2018 to December 31, 2018 |
$5,847. |
|
January 1, 2019 to December 31, 2019 |
$6,183. includes annual indexing |
|
January 1, 2020 to December 31, 2020 |
$6,402. |
|
January 1, 2021 to December 31, 2021 |
$8,624. |
|
January 1, 2022 to expiry |
$9,262. |
Non- residential Development Charges
Commercial Sector
| Year | Rate |
|---|---|
| Date of passing to December 31, 2015 | $2.30 |
| January 1 to December 31, 2016 | $2.35 |
| January 1 to December 31, 2017 | $2.40 |
| January 1 to December 31, 2018 | $2.45 |
| January 1 to December 31, 2019 |
$2.59 includes indexing |
| January 1, 2020 to December 31, 2020 |
$2.68 |
| January 1, 2021 to December 31, 2021 |
$3.51 |
| January 1, 2022 to expiry |
$3.77 |
Please note the Township also collects development charges for the County of Peterborough not included above.
Development Charge allocations
Development Charges are allocated to the Township services as follows:
| Service | Residential Development Charge | Commercial Development Charge |
| General Government | 1.3% | 1.8% |
| Fire Prevention | 19.9% | 28.6% |
| Public Works | 49.2% | 69.6% |
| Recreation | 26.1% | 0.0% |
| Library | 3.5% | 0.0% |
The Development Charges Act Study identifies growth related projects used to calculate the Development Charges.
2020 Development Charges Background Study
To view the 2020 Development Charges Background Study, please click here.
| What happens to the money collected? |
|
The Treasurer of the Township is responsible for the Development Charges Reserve Funds. The Treasurer must supply an annual statement to Council and the public outlining the activities within each portion of the Development Charges Reserve Fund. The purpose of the statement is to inform any interested parties as to the revenues collected each year together with the approved expenditures under the Development Charges By-law. The statement includes the opening and closing balances of each fund, a summary of transactions on revenues (payable development charges) and expenditures (outlining capital projects) as well as any other relevant activity (such as interest earned). This statement also includes any possible credits granted for work done by developers, (services-in-lieu, subsidies) or borrowings on reserve funds describing the amount, purpose, repayment policy and interest. The annual statement demonstrates to the public that the funds are appropriately managed and a copy is provided to the Ministry of Municipal Affairs, as required.
A copy of the Treasurer's Annual Statement will be available to the public within sixty days of presentation to Municipal Council at the Township Office in Keene and is part of the agenda on the Township website. |
If you have any questions or need more information, please contact the Planning & Building Department.