June 23, 1999
To:North York Community Council
From:H.W.O. Doyle
Subject:Use of Development Charges for the Residential Water Service Repair Program
Purpose:
To advise Community Council whether monies collected from development charges can be used to upgrade residential
water service as requested by North York Community Council.
Funding Sources, Financial Implications and Impact Statement:
Not applicable
Recommendations:
That this report be received for information.
Council Reference/Background/History:
North York Community Council at its meeting held on May 26, 1999, in dealing with the report of the Director, Water and
Wastewater Operations with respect to the Residental Water Service Repair Program, requested that the City Solicitor
report on whether monies collected from development charges can be used to upgrade the residential water service.
Comments and/or Discussion and/or Justification:
The intent of the Development Charges Act is to ensure that new growth largely pays for itself and that the capital cost of
services attributable to new development is not borne by the existing community. The amount of the charges must be
calculated according to the strict formula set out in the Act. Water works is a service which is included in the development
charge calculation and for which development charges can be collected. In accordance with the Act, monies collected from
development charges can be used only to fund the water service capital projects related to growth set out in the
development charge background report. The Act does not permit development charge monies to be used to benefit existing
residents.
Conclusions:
Although monies collected from development charges can be used for water service capital projects, the projects must be
growth related and development charge monies cannot be used to benefit existing residents.
Contact Name:
Anna Kinastowski
Director Planning & Administrative Tribunal Law
Legal Services Division
tel: 392-0080
fax: 397-4420
H.W.O. Doyle
City Solicitor
Legal Services
