Growth Funding Tools

The City is releasing draft materials for public input on growth funding tools and can be found under Materials for Public Input below.

 

Growth funding tools help new developments (or redevelopments) pay for the municipal services and infrastructure that support residents and businesses. With more than 3.65 million people projected to call Toronto home over the next thirty years, the City needs a plan to pay for our growth today and in the future. So as we grow, we’re investing in roads, transit, water and sewer systems, community centres, parks, housing, childcare and other municipal services and infrastructure.

The legislative framework provides financial tools for the City to collect funds as growth occurs on the premise that growth pays for growth. This means that new developments (or redevelopments) should help pay for the municipal services and infrastructure that support residents and businesses. It’s part of having livable, vibrant, and complete communities, not placing the financial burden on existing taxpayers.

Recently, the Ontario Government enacted through Bill 197 changes to how municipalities generate funding from development. The changes made through Bill 197 means the City must update three primary growth-related funding tools:

Collectively, these three financial tools generate approximately $750 million in revenue for the City of Toronto each year, which is used to help pay for building and improving infrastructure and services that support residents and businesses.

Read the Bill 197 and Work Plan report to Executive Committee (EX24.4) with more detailed updates on the City’s approach to legislative changes to the growth-related funding tools. For more information, please review the frequently asked questions.

The City of Toronto is undertaking a review of three of its growth funding tools: Development Charges, Community Benefits Charges, and Alternative Parkland Dedication Bylaws. The following draft studies, strategies and bylaws are now available to the public for input.

Development Charges

Community Benefit Charges

Alternative Parkland Dedication

 

How to submit comments:

The City will be hosting public information and consultation sessions to provide information and to receive input on:

 

To register for a public session, please click on one of the above dates for the Eventbrite link.  To submit comments on the draft materials, please send an email to GFT@toronto.ca.

 

Comments on the materials can also be provided to Committee and Council in June.  More information will be provided at a later date on the dates of the meeting(s) as well as how to provide feedback.

Growth funding tools (GFTs) help new developments (or redevelopments) pay for the municipal services and infrastructure that support residents and businesses. Growth funding tools are based on the principle that growth in our city pays for growth.

The City uses the revenues from these tools to pay for public spaces, clean drinking water, transit, libraries and other infrastructure and services needed to support our growing population and a thriving city and create complete and vibrant communities.

There are three types of growth funding tools:

  • Development Charges are a one-time fee collected at the time a building permit is issued to help pay for the capital investment required to support growth such as roads, transit, water and sewer infrastructure, community centres and fire and police facilities. It can only be used to fund growth-related capital costs, and cannot be used to fund other costs, such as operating costs, state of good repair or capital maintenance.
  • Community Benefits Charges is a new funding tool introduced by the Province that replaces Section 37 the density bonusing tool. The charges can apply to new developments with five or more stories and contains or 10 or more residential units and is capped under provincial legislation at 4 per cent of land value. This funding tool is flexible and can be used on a wide range of growth-related capital infrastructure provided the associated costs are not already recovered from the development charge or parkland funding tools.
  • The Alternative Parkland Dedication Rate supports the expansion and improvement of the parkland system through the creation of new parks, enhancement of existing parks and/or generation of revenue to fund recreational facilities.  This tool also supports the development of community recreation centres, arenas, and playgrounds.

Collectively, these three financial tools generate approximately $750 million in revenue for the City of Toronto each year, along with services or benefits provided in-kind, which have been used to help pay for building and improving infrastructure and services that support new residents and businesses.

The City of Toronto has consulted with Toronto residents, community groups, school boards, councillors, and the development industry on potential changes to its growth funding tools. Stakeholder feedback has and will continue to help the City understand what is important when it comes to creating and funding complete communities.

Engagement opportunities were tailored based on each group.  Materials from past public information sessions are available here.

To date, the City completed 19 workshops, meetings and information sessions, and shared information through the project website, frequently asked questions, and through a dedicated project email: GFT@toronto.ca.

Spring/Summer 2021  

  • Project launch
  • Technical studies – data collection and analysis
  • Bill 197 and Work Plan report to Executive Committee (EX24.4 )
  • Industry engagement sessions

 

 Fall 2021

  • Draft technical studies materials released for review
  • Public information sessions and workshops
  • Industry engagement sessions

 

Winter 2022 

  • Draft studies and policies
  • Additional public and industry engagement

 

Spring 2022 

  • Additional public and industry engagement
  • April – Draft materials released to public for review
    • DC Background Study and Bylaw
    • CBC Strategy and Bylaw
    • Parkland Strategy, Official Plan Amendment and Bylaw
  • April to May– additional public and industry engagement sessions
  • June – Committee and Council Reporting Cycle
    • DC Background Study and Bylaw
    • CBC Strategy and Bylaw
    • Parkland Strategy, Official Plan Amendment and Bylaw