New rates will collect more for growth costs of new facilities and road infrastructure
Oakville, August 11, 2009 - For Immediate Release
Oakville Town Council took steps to collect more of the costs of future growth in Oakville by adopting a new development charge by-law. The by-law, which comes into effect on August 31, 2009, sets new development charges that will generate $625.9 million in revenue to fund new facilities to 2018 and new road infrastructure to 2031.
"This by-law is an important part of our promise to residents that we will keep Oakville fiscally sustainable," said Mayor Rob Burton. "Increasing development charges is essential to minimize the impacts of growth on our current taxpayers."
The new charges reflect the growth-related capital expenditures anticipated by the ten-year capital forecast, which was approved by council on June 1, 2009. The new infrastructure needed to support development includes roads, libraries, fire stations, community centres, parks and public transit.
The development charge levied varies depending on the type of development planned. The by-law will increase residential development charges for a new single family residential unit by 63 per cent, and non-residential charges by 34 per cent. A new single family residential unit in north Oakville will now garner a charge of $21,682 compared to the current charge of $13,327. An area-specific charge of $336 per single family residential unit for storm water management will apply in south Oakville, for a total charge of $22,018 compared to the current charge of $14,102.
"Our aim is to ensure that capital projects driven by new development are funded by that development," said Patti Elliott-Spencer, Director of Finance and Treasurer for the Town of Oakville. "The increase is largely due to the increase in the town's service levels and the cost of infrastructure. The town also utilized a new methodology, which is being used by municipalities across the GTA, to maximize revenues to help pay for growth."
The existing Development Charge By-Law 2004-136 expires on August 31, 2009. The proposed charges were released on June 15 and a public meeting was held on June 29, 2009. In response to requests from the development community, council extended its consultation process to August 10 to respond to specific questions and concerns.
Of the $822 million in expenditures identified in the ten-year capital forecast, $493.5 million is earmarked for growth-related projects. Development charges are expected to cover $338 million of those expenditures, and are the largest source of revenue in the forecast. The balance of the development charge revenue to be raised from the new by-law will finance road infrastructure from 2018 to 2031.
Long-term projects the town expects to fund with development charges include:
- North Park Quad Arena
- QE Park Community Centre
- A new library branch
- Two new fire stations
- Additional buses
- Kerr Street widening
- Mid-town and QEW crossing
- New north Oakville operations depot
- Wyecroft Road expansion
- New park development
Due to legislative restrictions, development charges can't cover 100 per cent of growth-related costs. Other revenue sources identified in the capital forecast include reserves and reserve funds, gas tax revenues, and local infrastructure funding revenue that will come to the town from the elimination of regional pooling for social services costs.
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