Town applies to development charges reduction program

Jeff Helsdon, Editor

Tillsonburg council directed staff to apply to a provincial program that would allow development charges to be cut in half for the next three years.

Development charges are fees paid to a municipality by a developer to cover infrastructure costs associated with population growth. There are strict criteria for what the money can be used for. In Tillsonburg’s case, one recent example is the development charges paid for the new pickleball courts, meaning they didn’t have to come from the tax levy.

Ryan Wood, the town’s recently hired Budgeting and Financial Planning Coordinator, said a 50 per cent reduction in development charges would result in $3.4 million in lost development charges over the three years of the program. He said program approval is not guaranteed.

Coun. Chris Parker asked what the benefit is to the council of applying to the program, keeping in mind that the province could force a reduction in the fees at any time.

“I believe the benefit and intention of the program is to increase development in the community as well as grow potential tax base for the community,” Wood said.

Deputy Mayor Dave Beres asked if the lost development charges would be made up for by more homes being built. He also asked what the criteria are for mandatory charges, noting that the town has no industrial development charges, whereas Oxford County does.

Manager of Finance/Treasurer Renato Pullia explained that both the provincial and federal governments are looking to stimulate housing and are looking for municipalities to partner with. He said the speed with which the program came up – the deadline to apply was June 19 – may be due to the HST rebate on homes only being in place for one year.

Coun. Pete Luciani said he understands the need to build more housing, but added, “With the position we’re in now, I’m not sure how much this is going to help us.

Parker agreed but said the town doesn’t have much control over growth.

“My fear is we don’t support it, and we don’t participate in this program; we’re going to be caught in a position where we don’t get any funding. I have a feeling it’s going to get mandated,” he said.

Mayor Deb Gilvesy said at the county level, when it was discussed, it was revealed Oxford would be competing against larger centres such as Toronto, Mississauga and London.

“The sentiment is it’s going to be difficult for smaller municipalities to participate in this program,” she said. “That was the sentiment at the county table, it’s a long shot.”

Luciani, who read in the original motion to accept the report as information, didn’t accept a friendly amendment from Parker to apply for the program. After Luciani’s motion was turned down, a motion was passed to apply for the program.