Development Charges in Ontario

A review of the shortcomings of the DCA leads to a recommendation that the DCA be replaced by a new development charges section in the Municipal Act and City of Toronto Act that would enhance municipal efficiency, equity, and accountability, and ensure growth really does pay its own way. [...] The Province of Ontario can resolve this situation by taking the following actions: 1. R epeal the DCA and replace it with a section on DCs added to the Municipal Act and City of Toronto Act to consolidate municipal finance legislation and place DCs under the powers and flexibility generally afforded to municipalities by these acts.2 2. Ensure that this new DC section is created through meaningful [...] Deductions from growth-related capital costs in recognition of grants and other contributions Before a municipality can incorporate the cost of a capital work into the DC calculation, the DCA requires that the cost be reduced by the amount of any grant, subsidy, or other contribution made to or anticipated by the municipality for that capital work. [...] The only exception occurs if the contributor explicitly indicates, at the time the contribution is made, how the contribution is to be shared between existing and new development, in which case the growth-related and non-growth- related portions of the capital cost are reduced by the amounts of the contribution respectively designated for these portions. [...] By this time, a portion of the growth the capital work is intended to serve may have become existing development, reducing the amount by which the cost of the capital work can be recovered by DCs.