Uncertainty about the full implications of Bill 23 is casting a shadow over the Town of The Blue Mountains’ efforts to update its development charges bylaw.
At its meeting on Feb. 13, the town received a delegation from Craig Binning from Hemson Consulting. Binning provided an update on the town’s work to renew its development charges bylaw and background study.
The town is in the early stages of the update to the study/bylaw and it’s clear the province’s Bill 23 is going to have a significant impact.
“It will result in the town collecting less development charges revenue than it would have historically,” Binning said.
The province passed Bill 23 in an effort to get 1.5 million new homes built in Ontario over the next 10 years. The legislation provides discounts on affordable, attainable and rental housing and also provides a general discount on all development charges collected by a municipality.
In year one of any new development charges bylaw, a municipality will have to discount its charge by 20 per cent. That discount shrinks by five per cent a year until the sixth year of the bylaw. Development charges bylaws can now be in place for a 10-year time frame.
Binning explained that many of the provisions and definitions in Bill 23 are still unknown and he said predicting the precise impact of the new law is difficult. Binning said he forecasts lost revenue and increased expenses for municipalities, but did say Bill 23 has provisions to assist municipalities. Those provisions are not clear at this time.
“Will municipalities be made whole for that loss and how?” he said.
Coun. Paula Hope asked Binning how the town’s current development charges compare to other municipalities.
Binning said The Blue Mountains has some of the highest rates in Grey County, but when compared to neighbouring municipalities in Simcoe County the town’s rates were even or below.
Hope also asked that, in the current climate of Bill 23, if an increase to the development charges would be seen as “provocative.”
Binning said any rates the town applies must be justified through the background study, which is compiled by looking at future infrastructure needs.
“Most bylaws don’t get appealed. We’ll do our best to avoid an appeal,” he said.
The town’s current development charges bylaw expires in April 2024. Hemson Consulting will be working with town staff over the next year to update the town’s background study and bylaw. A proposed new bylaw will be presented to council and the public in early 2024.
