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Municipal Development Charges
Municipal Development Charges assist in financing capital projects required to meet the increased need for services resulting from growth and development. Development Charges funds may only be used for the purpose for which they are collected.
Development Charges are calculated by the Building Division of Development Services and Engineering Department, as part of the Building Permit and concurrent Site Plan Approvals Process.
Background Study
The Development Charges Act, 1997 and Ontario Regulation 82/98 require that, prior to the passing of a by-law, a development charges background study be undertaken to identify:
- The forecasted amount, type and location of future development;
- The average service levels provided in the City over the 15-year period immediately preceding the preparation of the background study;
- Capital cost calculations for each eligible development charge service; and
- An examination of the long term capital and operating costs for the infrastructure required to service the forecasted development.
New Development Charges By-law (February 2023)
On February 13, 2023, Council passed By-law No. 2023-009 being a by-law to impose development charges on residential, commercial and other non-residential development.
- NEW Development Charges Pamphlet - February 13, 2023
- Notice of the Passing of a Development Charges By-law - February 13, 2023
- Development Charges By-law No. 2023-009 - passed February 13, 2023
The following is an outline of the anticipated timelines necessary to approve the new Development Charges By-law:
- Draft 2022 Development Charges Background Study (Released December 15, 2022)
- Notice of Public Meeting (City Bulletin December 21, 2022)
- By-law Publicly Available (Released December 22, 2022)
- Public Meeting of Council (January 16, 2023 at 2:00 p.m.)
Please see the Residential Development Charges flow chart for more information about DC exemptions as a result of Bill 23.
| School Board Development Charges |
| The City of Orillia also collects development charges on behalf of the Simcoe County District School Board and the Simcoe Muskoka Catholic District School Board. Funds are then reinvested into the construction of new area schools.
SMCDSB Notice of Passage - 2019 By-law SCDSB Notice of Passage - 2019 By-law If you have questions or want more information related to school board development charges, please contact the boards directly. |
| Property Taxes |
| Click here for information on Tax Rates in the City of Orillia |
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Changes to the Development Charges Act, 1997
Effective January 1, 2020 changes to the Development Charges Act, 1997 (DCA) were made related to the timing and calculation of the development charge payments as part of the Bill 108 - More Homes, More Choice Act, 2019.
DCA, Section 26.1 - Instalment Plans
- For rental housing that is not non-profit housing (minimum 4 units - all of which are intended for rental use): Development charges will be due in 6 equal annual payments plus interest commencing on the earlier of the date of the issuance of an occupancy permit or the date the building is first occupied. The person required to pay development charges is required to notify the City within 5 business days of the building first being occupied. Failure to notify the City will result in the development charges, including interest payable becoming due and payable immediately.
- For institutional development: Development charges will be due in 6 equal annual payments plus interest commencing on the earlier of the date of the issuance of an occupancy permit or the date the building is first occupied. The person required to pay development charges is required to notify the City within 5 business days of the building first being occupied. Failure to notify the City will result in the development charges, including interest payable becoming due and payable immediately.
- For non-profit housing development: Development charges will be due in 21 equal annual payments commencing on the earlier of the date of the issuance of an occupancy permit or the date the building is first occupied. The person required to pay development charges is required to notify the City within 5 business days of the building first being occupied. Failure to notify the City will result in the development charges, including interest payable becoming due and payable immediately.
Interest is accrued from the date the development charge is calculated until the final payment is received. Interest is to be paid on each instalment until the final payment is received.
DCA, Section 26.2 - Development Charge Rate Freeze
The following applies to complete Site Plan Applications and Zoning By-law Amendment Applications accepted by the City on or after January 1, 2020. The amount of the development charges are determined on:
a) the day an application for an approval of a Site Plan application was made in respect of the development;
b) if the clause a) does not apply, the day a Zoning By-law Amendment Application was made in respect of the development; or
c) if neither clause a) or b) applies, the day the Building Permit is issued.
The development charge rate is then frozen from the date of the application approval in clause a) or b) for a period of 2 years. If a Building Permit has not been issued within the two year period following the application approval, the development charge rate will revert back to the charges in effect on the date a Building Permit is issued. Interest applies when a Building Permit has been issued within the frozen period. Interest shall accrue from the date the complete application is received.
