Development Charges (Financing Growth)

Project description

In January 2018, the province adopted the new Community Planning Act, which changed the main infrastructure financing tool for municipalities in New Brunswick. The new tool (Development Charges) allows for an equitable, transparent, and systematic framework in working with the private sector to help finance growth and expansion into key areas of the City. Infrastructure refers to new or expanding facilities associated with public services such as roads/sidewalks, traffic lights, trails, water/sewer underground pipes and treatment/distribution facilities.

Where Moncton is the largest city in NB and is fortunate to be going through a strong economic growth period, Council must adopt a new Development Charge By-law to implement the new tool and to help ensure development in new growth areas is assessed openly and fairly. When the City is unable to recover the true costs of new or expanding facilities tied to development in these areas, existing taxpayers end up sharing the burden in financing development.

Project purpose

Strategic Objectives

- Generate new revenue to support future growth and development without burdening the general tax base.

- Reduce infrastructure deficit by increasing development-related revenues based on the principle that “growth pays for growth”.

-Improve capital programming as it relates to implementing Municipal Plans, Neighbourhood Plans, Long Term Infrastructure and Transportation Plans.

Key challenges

- Unnecessary costs absorbed by city associated with paying for infrastructure that should be paid by development.

- Large undeveloped areas across City are not likely to develop because there is a lack of infrastructure to accommodate new construction in these areas.

Project considerations

Estimating Capital Costs

• For the growth capital needs, cost estimates are typically based on comprehensive costing of constructing the project, i.e. this typically includes:
• Land cost
• Construction costs
• Design and engineering
• Landscaping, parking, lot services
• Permits & Approvals
• GST/PST
• Other (depending on the project)

Developing a local service policy

A policy guiding the formation of a Development Charge By-law typically considers:

• Collector & Arterial Roads
• Intersection Improvement and traffic signals
• Street lights and Sidewalks
• Bike Routes/Bike Lanes/Bike Paths/Multi-Use Trails/Naturalized Walkways
• Land dedications/easements
• Water, wastewater and stormwater

Key Steps

May-June, 2019: Research and Data Collection

July-October, 2019: Developing Draft Framework

November 2019 - February 2020, Legislative process (meetings of Council, Public Hearing, Registration)

Consultation opportunities are ongoing throughout the process; please check this site (www.letschatmoncton.ca) regularly to stay informed of all key milestones, including any future public meetings and the public hearing.

*To participate in this process, please register/sign in (see top right corner).

New Draft Provincial Development Charge Regulation

As mentioned above, the Province enacted the new Community Planning Act in January, 2018. Part 4, Section G contains the requirements that the City must follow in making and administering a Development Charge By-law (see here: http://laws.gnb.ca/en/showfulldoc/cs/2017-c.19/#anchorga:l_4-gb:l_g).

In order to further implement these legislative requirements, the province is proposing a Development Charge Regulation. This Regulation, if enacted by the province, will provide greater clarity to the core requirements under the Community Planning Act.