Erin’s development charge reserve balance increased to $1.71 million in 2022
ERIN – The town’s bank balance related to development charges has increased year-over-year.
The information comes from a report on 2022 year-end development charge reserve balances, presented by town finance director Wendy Parr to council on May 11.
Development charges, paid by developers, are a mechanism used by municipalities to fund growth-related capital projects and activity.
In Erin, the charges can be collected to fund projects falling under the categories of transportation, fire, parks and recreation, administrative studies, water supply, and wastewater services.
Last year, around $950,000 in development charges was collected — an increase of 16 per cent from the $795,000 collected in 2021.
The town also earned $36,900 in interest on its balances — an increase of 200% from the $12,300 earned in 2021.
With an opening January balance of $1.16 million, the town added $987,578 to its coffers in 2022.
A total of $391,613 was spent from the development charge reserves, according to Parr’s report.
The money, $197,358 for operations and $194,255 for capital, funded:
- road surface treatment;
- expansion of 17th Sideroad;
- Hillsburgh fire station 50;
- water services development; and
- expansion of Barbour Field.
Once that spending is accounted for, there’s an overall increase of nearly $600,000 in the amount of money sitting the town’s development charge reserves.
“Collections and interest earned were slightly higher than the amounts transferred” out for capital projects, Parr summarized in her report.
The town closed out 2022 with a development charge reserve balance of $1.71 million.
