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Development Charges Background Study and By-law Update

What are Development Charges?

Development charges (DCs) are imposed by municipalities on developers or landowners to pay for increased capital costs related to growth. Growth related capital costs are costs that result from the expansion of services, like roads, water and wastewater services, police, fire and transit, to meet the needs of new development.

The principle behind development charges is that development pays for the share of capital costs associated with new growth and development while taxpayers or ratepayers fund infrastructure that benefits the existing population.

When is a Development Charge Payable?

A development charge is payable on the date a building permit is issued and is based on the development charge schedule in force on that date.

Why are the Background Study and By-law Being Updated?

The City of Greater Sudbury’s current by-law expires on June 30, 2024. The DC Background Study and new by-law must be approved before then in order to collect DC’s after June 30, 2024. The Background Study will illustrate the City’s existing service levels, the growth-related capital program, and the calculated development charges rate. Council will approve the development charges rate, which can’t exceed the calculated development charges rate determined by the Background Study. The by-law will establish the framework for application of the development charge and the rates that will be applied based on the type of development.

View the 2024 Development Charges Background Study here.

What are Development Charges?

Development charges (DCs) are imposed by municipalities on developers or landowners to pay for increased capital costs related to growth. Growth related capital costs are costs that result from the expansion of services, like roads, water and wastewater services, police, fire and transit, to meet the needs of new development.

The principle behind development charges is that development pays for the share of capital costs associated with new growth and development while taxpayers or ratepayers fund infrastructure that benefits the existing population.

When is a Development Charge Payable?

A development charge is payable on the date a building permit is issued and is based on the development charge schedule in force on that date.

Why are the Background Study and By-law Being Updated?

The City of Greater Sudbury’s current by-law expires on June 30, 2024. The DC Background Study and new by-law must be approved before then in order to collect DC’s after June 30, 2024. The Background Study will illustrate the City’s existing service levels, the growth-related capital program, and the calculated development charges rate. Council will approve the development charges rate, which can’t exceed the calculated development charges rate determined by the Background Study. The by-law will establish the framework for application of the development charge and the rates that will be applied based on the type of development.

View the 2024 Development Charges Background Study here.

  • Development Charges Background Study

    As part of the Development Charge Background Study, the City is gathering input before establishing the new development charge rates.

    Municipalities in Ontario use development charges to fund capital projects that support growth in the community. In accordance with the Development Charges Act, development charges are collected on new and expanding development at the building permit stage to help the City pay for municipal services needed to support the new development. These services include water, wastewater, emergency services, roads and more.

    If development charge revenues do not cover the growth-related costs, growth projects may be deferred until external funding sources can be obtained or until the projects could be funded through the City’s future budgets through property taxes or water/wastewater user fees.   Should we add: Annual property taxes and water/wastewater user fees are collected to provide annual services (operating budget) and for replacement of existing infrastructure (capital budget) to the community.

    Background:

    The Provincial Government created the Development Charges Act to provide municipalities with a financing tool to collect revenues in an equitable manner to provide services to their local residents.

    The principle of development charges is that growth pays for growth and minimizes growth-related infrastructure costs to existing taxpayers and businesses.

    Development charges do not relate to internal servicing costs paid by developers when constructing a residential subdivision where the internal infrastructure are the roads, water pipes and sewer pipes internal to the development.

    Notice of Collection

    The collection of personal information on the Over to You forum is collected under the authority of sections 10 and 227 of the Municipal Act, 2001, S.O. 2001, c. 25 and will be used by the City to inform the development of strategies, programs and activities, or to gain insight into community views and opinions. All comments, including your user name, will be part of the public record which is posted online and may appear in reports and updates to Council. Questions about the collection or use of personal information may be directed to the Coordinator of Budgets, City of Greater Sudbury, PO Box 5000 Stn A, 200 Brady Street, Sudbury, Ontario, P3A 5P3 or by calling 705-674-4455, extension 2529.

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Page last updated: 12 Apr 2024, 06:15 PM