More Homes Built Faster Act

The province introduced Bill 23 (More Homes Built Faster Act) as a means to facilitate the construction of 1.5 million homes over the next 10 years.

The Act amends several pieces of legislation regarding natural heritage and land use planning and policy. Among the changes is a reduction in development charges fees municipalities can collect from developers who construct new homes and buildings in the community.

Development should pay for development.

By charging developers a fee for the cost of infrastructure, municipalities are able to build the roads, parks, trails, and water systems that communities need to thrive.

Property tax dollars pay for programs and services as well as the ongoing cost of maintaining infrastructure (such as cleaning parks, clearing snow, waste collection).

The Town currently collects approximately $27 million in property taxes annually to fund ongoing annual operations.

To replace the shortfall, the Town must find alternative funding which could include grants from the provincial and federal government and reserves (savings).

If unsuccessful, property taxes would be needed to fund the cost of building community infrastructure.

The Town will commence the 2023 budget process on January 30.

The base program and service budget will be at or below the rate of inflation which is averaging 6.9% for 2022.

This does not include the shortfall expected due to the More Homes Built Faster Act and there are no additional impacts from Bill 23 that are included in the budget submission.

Beginning in 2024, the impacts of Bill 23 could require a 3% to 5% annual increase to property taxes to account for the cost of municipal infrastructure that would have otherwise been paid for through development charges.