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Purpose of Development Charges
Development charges help finance capital
projects required to meet the increased
need for services resulting from growth
and development. Development Charges
are fees and may only be used for the
purpose for which they are collected.
Background Study
The Development Charges Act, 1997, and
Ontario Regulation 82/98 require that,
prior to passing a by-law, a development
charges background study be undertaken,
that includes:
-
A forecast of the amount, type and
location of future development;
-
The average service levels
provided by the Township over the
10-year period immediately
preceding the preparation of the
background study;
-
Capital cost calculations for each
eligible development charge
service;
-
An examination of the long term
capital and operating costs for
infrastructure required to service
the forecasted development;
-
An asset management plan to
demonstrate that all assets
included in the study are financially
sustainable over the full life cycle.
Watson & Associates Economists Ltd.
prepared the Development Charges
Background Study for the Township. The
study, dated August 2, 2022, served as
the basis for the development charge
rates approved by Township Council on
October 5, 2022 through By-law 2022-
154. This By-law came into effect on
October 6, 2022.
Development Charge Rates
(indexed)
Type of
Development
Development Charges
Rate
Effective January 1 to
December 31, 2026
Residential ($/unit)
Rural
Urban
Single & Semi
Detached
Dwelling
$10,657
$22,147
Other
Multiples
$ 6,658
$13,838
Apartments -
2 bedroom+
$ 6,811
$14,155
Apartments -
Bachelor and
1 bedroom
$ 4,548
$ 9,447
Non-Residential ($/unit)
ICI (per sq ft
of Gross Floor
Area)
$2.5996
$7.9705
Wind Turbine
(per turbine)
$ 5,671
N/A
Solar Farm
(per 500 kw)
$ 5,671
N/A
A new Background Study and DC Rate By-
law is in progress and is anticipated to
come into effect some time in 2026.
Bill 185, Cutting Red Tape to Build
More Homes Act, 2024
Effective June 6, 2024, the Province
removed the requirement to reduce the
charges within by-law 2022-154. As such,
all charges are now in full effect.
The amount of each development
charge per Single & Semi Detached
Dwelling unit is allocated by Township
service as follows:
Designated
Service
% of Charge
Rural
Urban
Related to a
Highway
38.3%
18.5%
Fire
Protection
13.4%
6.4%
Parks and
Recreation
34.0%
16.4%
Library
10.6%
5.1%
Waste
Diversion
2.2%
1.0%
Growth
Studies
1.5%
0.7%
Stormwater
Drainage
and Control
0%
0.1%
Wastewater
0%
18.3%
Water
0%
33.5%
Total
100.0%
100.0%
Redevelopment
A credit will be provided against
development charges owing where
buildings or structures have been
demolished to permit the redevelopment
of the property.
The eligibility for demolition credits is
restricted to demolitions that occur within
the last five years of the redevelopment of
the property.
Term of By-law
By-law 2022-154 will remain in force until
October 6, 2027.
Indexing of Development Charges
The development charges will be adjusted
annually on January 1st of each year,
commencing in 2023, without amendment
to the by-law, in accordance with the
most recent annual change in the
Statistics Canada Quarterly, "Non-
Residential Construction Price Statistics."
Services Covered
Development charges have been imposed
for the following categories of Township
services in order to pay for the increased
capital costs required as a result of
increased needs for services arising from
development:
-
Services Related to a Highway
-
Fire Protection Services
-
Parks and Recreation Services
-
Library Services
-
Growth Studies
-
Waste Diversion
-
Stormwater Services
-
Wastewater Services
-
Water Services
Development Charge Collection
Development charges are collected at the
same time the building permit is issued.
Effective November 3, 2025, Bill 17
(Protect Ontario by Building Faster and
Smarter Act, 2025) has made changes to
the timing of the collection of DCs. For
homeowners and builders, DCs are
required to be paid in full before the
occupancy permit can be issued and
before the building is first occupied.
Non-rental residential DCs are now
payable at occupancy rather than at
building permit issuance, unless the
builder/homeowner elects to pay them
earlier. For all other non-residential
development, payment is at time of
building permit issuance.
Unpaid Charges added to Tax Roll
Where a development charge or any part
of it remains unpaid after it is payable, the
amount unpaid will be added to the tax
roll and will be collected in the same
manner as taxes.
Statement of the Treasurer
The Township's Treasurer is required to
produce an annual statement showing the
detailed information about each reserve
fund established to account for
development charge revenues.
The statement will document the
continuity of each reserve fund, including
the description of each service, opening
and closing balances, details of any credit
transactions, details of any borrowing
from the reserve fund that may have
occurred, the amount spent on growth
related projects, the portion of each
project that is funded from the reserve
fund and the portion funded from other
sources of financing.
Additional Information
For further information, please contact:
The Township of Southgate
185667 Grey County Road 9
Dundalk, ON N0C 1B0
Telephone: (519) 923-2110
Toll Free: 1-888-560-6607
Facsimile: (519) 923-9262
Email - [email protected]
Township of
Southgate
Development Charges
Information
As per By-Law 2022-154
and Bill 23
(Indexed January 1, 2026)
This pamphlet summarizes
the Development Charge
By-law for the Township of
Southgate
January 2026
The information contained herein is intended
only as a guide. Interested parties should
review the approved by-laws and consult the
Building Department at the Township of
Southgate to determine the applicable charges
that may apply to specific development
proposals.