Development Charges

What are Development Charges?
Development Charges are a one-time fees paid by developers at the time a building permit is issued. The charges ensure that capital costs to service new development are covered. They support roads, fire services, public works and fleet, administration, the library and parks and recreation in our community. The Development Charges Act provides the legislative authority for collection of Development Charges. The principle behind Development Charges is that growth should pay for growth. In the absence of development charges, the costs for additional infrastructure are paid for through increased property taxes and user fees.
How are Development Charges Determined?
The Development Charges Act, 1997 (Act) provides Council with the authority to pass a by-law to impose Development Charges. The Background study takes the following into account: A forecast of the amount, type and location of development, population The historical level of capital service levels A review of future capital projects to provide for the expected development. 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.
What do Municipalities do with the Development Charges?
Funds collected for Development Charges must be held in a separate Reserve Fund for each service to which the levy applies. 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.
Development Charge Background Study
The Township of Greater Madawaska contracted Watson & Associates Economists Ltd. to undertake a Development Charges Background Study on behalf of the Township. View Development Charge Background Study produced by Watson & Associates Economists Ltd. February 2022

What are Development Charges?

Development Charges are a one-time fees paid by developers at the time a building permit is issued. The charges ensure that capital costs to service new development are covered. They support roads, fire services, public works and fleet, administration, the library and parks and recreation in our community. The Development Charges Act provides the legislative authority for collection of Development Charges.

The principle behind Development Charges is that growth should pay for growth. In the absence of development charges, the costs for additional infrastructure are paid for through increased property taxes and user fees.

How are Development Charges Determined?

The Development Charges Act, 1997 (Act) provides Council with the authority to pass a by-law to impose Development Charges. The Background study takes the following into account:

A forecast of the amount, type and location of development, population
The historical level of capital service levels
A review of future capital projects to provide for the expected development.

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.

What do Municipalities do with the Development Charges?

Funds collected for Development Charges must be held in a separate Reserve Fund for each service to which the levy applies. 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.

Development Charge Background Study

The Township of Greater Madawaska contracted Watson & Associates Economists Ltd. to undertake a Development Charges Background Study on behalf of the Township.

View Development Charge Background Study produced by Watson & Associates Economists Ltd. February 2022

Development Charges By-Law and Fee Schedule

The Council of the Township of Greater Madawaska passed the current municipal-wide Development Charges By-law 26-2022 on April 19, 2022 under section 2 (1) of the Development Charges Act, 1997, S.O., 1997 c. 27, as amended. The deadline for appeals in respect to the development charges by-law was May 29, 2022. Any person or organization was permitted to appeal to the Local Planning Tribunal under section 14 of the Act by filing with the Clerk of the Township of Greater Madawaska a notice of appeal setting out the objection to the by-law and the reasons supporting the objection.

The schedule of development charges imposed by the by-law, is as seen in the Notice of Passing and in By-law 26-2022. As per Section 5.1 of the by-law, the development charges imposed shall be adjusted annually, without amendment to the by-law, beginning on January 1, 2023 and on each January 1 thereafter.

Development Charge Fees, effective January 1, 2024 (including indexing):

Effective January 1, 2024

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