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New Tecumseth development charges bylaw under appeal

Posted December 18, 2013

Local developers have appealed New Tecumseth's updated Development Charges fee schedule to the Ontario Municipal Board (OMB). It's the second time in a row the DC update has been appealed.

In September, council approved increasing DCs by $6,723 to $38,409 per detached and semi-detached housing unit built on full urban services. The roads, water and wastewater component accounts for $30,658 of the total, while the $7,751 will cover the "soft services" - library, fire, parks and recreation, public works, and general government.

DCs for rows and other multiple units on full services are $35,656; apartments over two bedrooms cost $26,972 in DCs, while bachelor or one bedroom apartment rate is $17,531.

Commercial DC rate is $234.53 per sq. metre of gross floor area, while the industrial rate is set at $140.72per sq. metre of gross floor area. There are rate discounts for commercial and industrial expansion, as well as development in the downtown cores.

The background study projects the next 10 years of growth related capital programs for general services - library, fire rescue, parks and recreation, police services, public works, and general government - to cost $64 million, of which $24.8 million can be recovered through DCs. And Engineered services - roads, water, wastewater - capital program over 10 years will cost about $425 million, of which $333 million can be recovered from DCs. In both cases, the shortfall would have to be covered by other means - taxation and or user fees.

Among the contentious issues relate to projected growth forecast, the Benefit to Existing (BTE) calculations for projects and then many specific project costing related questions.

Even though the DC fee schedule has been appealed, the Town continues to collect the current rate. If the OMB and or a settlement is reached, the difference in the final settled rate will be refunded, and the development charges background Study will be updated to reflect the agreed to revisions.

New Tecumseth's long term debt is expected be serviced by development charges of $33 million (63.7 per cent), taxation of $18.3 million (35.2 per cent) and utility user rates of $0.55 million (1.1 per cent).

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