Minto receives DC report, pursues provincial funding

MINTO – Minto council has received its annual development charges (DC) report and approved submitting an application to a provincial funding program tied to temporary reductions in residential development charges.

Treasurer Gordon Duff told council on June 16 that municipalities are required to complete the annual DC report by June 30, as well as post it publicly and submit it to the province.

Development charges are collected to help pay for growth-related capital projects needed to service new residential and non-residential development.

Duff reported that Minto’s building activity was relatively low in 2025. The town totalled about $72,000 in development charges, while $55,000 was allocated to a roads project and $60,000 to a fire project.

“We take the funds, and we do invest them, and interest rates were quite good in 2025,” Duff said.

Development charge reserves increased slightly from $2.317 million at the start of 2025 to $2.355 million by year-end.

Duff noted the report was based on the town’s previous development charge study and bylaw, as a new DC bylaw was recently approved.

He also said the province requires municipalities to demonstrate that development charge funds are being used rather than accumulated.

For Minto’s development charge background study, Duff said staff selected a few projects from each service, and only those that were slated to be done between 2026 and 2041.

Council accepted Duff’s declaration that the town complies with Section 59.1(1) of the Development Charges Act and directed staff to post the report and supporting documents on the town’s website. 

The motion was carried without discussion.

DC reductions

Following that report, council also considered participation in the provincial Development Charges Reduction Program (DCRP), which offers infrastructure funding in exchange for municipalities reducing residential development charges by 30 to 50 per cent for three years.

Duff said applications opened on June 1 and were due by June 19, although application forms were not released until June 10.

“It’s been a real scramble,” he told council.

The program provides federal-provincial funding for infrastructure projects that support housing construction. Municipalities must contribute at least 10% of project costs, although applications with larger municipal contributions may receive favourable consideration.

Duff noted the program applies only to residential development charges and would not affect industrial or commercial projects. He added Minto’s relatively low development charges mean any lost revenue would be “modest.”

The treasurer emphasized the application process is “extremely aggressive.”

Eligible projects must begin construction by July 31, 2030 and be completed by Oct. 31, 2035. 

The program only funds the portion of project costs that would normally be recovered through development charges, not the full cost of a project.

Eligible projects proposed in Duff’s report include:

– a new Harriston well ($4.49 million total cost; $1.52 million DC-eligible);

– Harriston well construction ($380,000 total; $342,000 DC-eligible);

– a new Palmerston well ($5.36 million total cost; $1.72 million DC-eligible);

– urbanization of Minto Street in Clifford ($1.26 million total cost; $1.13 million DC-eligible); and

– the Elora Street and park culvert project ($1.49 million total cost; $1.34 million DC-eligible).

Town estimates suggested the application could result in a net positive funding impact of $3.5 million to $5.3 million, depending on funding levels and future growth, while foregone development charge revenue could range from $120,000 to $494,000.

The report noted that even if only Minto’s highest-priority project – the new Harriston well – received funding, the municipality would still be ahead by about $1 million.

Duff said staff recommended proceeding with an application but sought council direction on several possible scenarios. 

The options varied based on the level of development charge reduction, municipal capital contribution and anticipated housing growth.

Under option A, council would reduce residential development charges by 30% for three years and commit to a 10% municipal contribution toward eligible projects. Based on moderate growth projections, staff estimated the option could generate a net funding benefit of about $5.1 million.

Other scenarios included higher growth assumptions, larger municipal contributions and the option of not applying to the program at all.

Deputy Mayor Jean Anderson questioned whether the proposed projects would qualify, noting the province appears focused on housing construction.

“I understand we need the wells, we need the water, we need the sewer … but maybe higher levels of government don’t understand that we need infrastructure,” she said.

Duff said infrastructure that supports future housing growth is eligible.

“What is our limiting factor on how much we can grow in both Harriston and Palmerston? It’s water capacity,” he said.

Mayor Dave Turton suggested the program creates uncertainty for lower-tier municipalities, and Duff acknowledged Minto’s chances of success may be limited.

“But it’s like the lottery; if you don’t buy a ticket, you’ve got no shot,” Duff said.

The mayor asked what happens if Minto’s application is unsuccessful. Duff replied the municipality would continue operating under its current development charge structure.

Council ultimately received the report for information and directed staff to proceed with option A to and submit an application.