Councillors question impact of development charges

With the recent approval of a $21.3 million tender for an expanded sewage treatment plant here, Centre Wellington now faces the task of revising its development charges.

That task also means looking at how revised charges could potentially affect development in the township.

The issue came forward as part of the July 9 special council meeting as councillor Walt Visser asked whether the sewage treatment plant costs would result in changes to the township’s development charges.

Visser was told staff is already working on an update to its development charges bylaw, with a report to council anticipated later this year – and that this may have an impact.

Mayor Joanne Ross-Zuj agreed Visser had a good point to be made.

When county council was recently updated on its own development charges, Ross-Zuj asked “what happens when we get these wow moments, when we get a little increase we had not anticipated.”

She was told that was the time development charges needed to be revisited.

Councillor Fred Morris had concern as to what would happen when those charges are revised.

“What will this do to us in terms of growth?” he asked.

“We already know there is a community to the north which is reducing their development charges in the hopes of attracting growth.”

Morris stressed “I’m not sure that’s a good strategy … I’ve been there, done that and bought the T-shirt.”

“We’re not going to go there,” the mayor added.

Morris remained concerned that increased development charges could impact the growth of the community.

“I don’t know what increasing development charges will mean to our community in the future.”

Snarr suggested that development charges are relatively low.

He further pointed out that development charges are designed to cover the costs of growth-related infrastructure.

“If you don’t, the costs have to be paid for through taxation and water/sewer rates.”

Snarr said the costs should be paid for through new development.

“I do not believe this project alone will increase the cost that much,” he added of the sewage plant expansion.

When Snarr was asked what would happen if the township increased development charges and the economy did not improve, he contended that because of Centre Wellington’s proximity to the GTA and other economic factors “we always will have development here.”

He agreed there is the potential of development slowing down, but to him the issue boiled down to managing the cash flow.

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