Development Charges
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Development charges are fees paid by new development to fund municipal infrastructure and services related to this growth. These improvements may include items such as sewer pipes and road improvements. Every five years, the municipality conducts a development charges background study to forecast the community’s future residential and non-residential growth to determine future municipal needs and costs. Please review the Development Charges Brochure for more detailed information.
Are development charges included with property taxes or water and wastewater rates?
No. Development charges are different than property taxes and water and wastewater rates. Development charges represent a source of funding for the design and construction of new municipal infrastructure required to support new developments. Only new construction or additions to existing buildings are required to pay development charge fees.
Property taxes, water rates and wastewater rates are collected and used to pay for the everyday costs of running and maintaining the community. All of Essex's property owners are responsible for these ongoing costs.
Development Charges Background Study
At least every five years, the municipality conducts a development charges background study to forecast the community's future residential and non-residential growth to determine infrastructure needs and costs. This information is used to calculate the amount of money that new development needs to pay in order to cover new infrastructure and services. The most recent background study was performed in 2019 and new charges were adopted with a Development Charges By-law in August 2019. Subsequent amendments to the Bylaw and interest rate policy were adopted in 2021.
The Town's 2019 development charges vary by ward as set out in the tables below:
Schedule of Development Charges
| Service | Residential | Non-residential | ||||||
| Single and semi-detached dwelling (per dwelling unit)1 |
Apartments, 2+ bedrooms (per dwelling unit)1 |
Apartments, bachelor and 1 bedroom (per dwelling unit)1 |
Other multiples (per dwelling unit)1 |
Special care/Special dwelling unit | Per square foot of gross floor area | Wind turbines and telecommunications towers | Solar farms (per square foot) | |
| Development Charges for 'Hard Services' | ||||||||
| Services Related to a Highway | $1,830 | $923 | $770 | $1,109 | $653 | $0.86 | $1,830 | $0.86 |
| Fire Protections Services | $1,155 | $583 | $486 | $699 | $412 | $0.54 | $1,155 | $0.54 |
| Policing Services | $504 | $254 | $212 | $305 | $179 | $0.22 | $504 | $0.22 |
| Administration - Essential Service Studies | $106 | $53 | $45 | $65 | $38 | $0.05 | $106 | $0.05 |
| Total Municipal Wide Services (Hard Services) | $3,595 | $1,813 | $1,513 | $2,178 | $1,282 | $1.67 | $3,595 | $1.67 |
| Area specific services | ||||||||
| Ward 1- Essex Service Area | $3,952 | $1,993 | $1,662 | $2,393 | $1,409 | $2.39 | - | - |
| Ward 2- Colchester North Service Area | $1,028 | $519 | $433 | $623 | $367 | - | - | - |
| Ward 3- Colchester South Service Area | $2,438 | $1,230 | $1,025 | $1,477 | $869 | $1.39 | - | - |
| Ward 4- Harrow Service Area | $2,929 | $1,478 | $1,232 | $1,775 | $1,045 | $1.69 | - | - |
| Development Charges for 'Soft Services' | ||||||||
| Outdoor Recreation Services | $1,737 | $876 | $730 | $1,052 | $619 | $0.07 | - | - |
| Indoor Recreation Services | $3,831 | $1,933 | $1,611 | $2,320 | $1,366 | $0.13 | - | - |
| Library Services | $265 | $134 | $112 | $160 | $94 | $0.01 | - | - |
| Administration - Community Based Studies | $119 | $60 | $50 | $72 | $42 | $0.06 | - | - |
| Total Municipal Wide Services (Soft Services) | $5,952 | $3,004 | $2,503 | $3,604 | $2,122 | $0.27 | - | - |
1Charges are based on a per dwelling basis (e.g. semi-detached dwelling would be required to pay a charge for each of the two dwelling units)
*Previously included in the charge for Service Related to Highway
**Previously presented as two separate charges for Indoor and Outdoor Recreation Services
***Previously presented as two separate charges for Administration-Essential Services & Administration Based Services. Some studies have been removed as they are no longer eligible due to the changes in legislation.
Harrow Settlement Area
The new Development Charges By-law applies to all lands within the Town of Essex with the exception of the Harrow Primary Settlement Area. Charges for residential uses within the Harrow Primary Settlement Area shall be imposed at the following rate:
|
Service
|
August 28, 2019-August 27, 2020 |
August 28, 2020-August 27, 2021 |
August 28, 2021-December 31, 2021 |
January 1, 2022-December 21, 2022 |
January 1, 2023-December 31, 2023 |
January 1, 2024- August 27, 2024 |
|
Municipal Wide Services: |
|
|
|
|
|
|
|
Services Related to a Highway |
0% |
0% |
0% |
25% |
50% |
75% |
|
Fire Protection Services |
0% |
0% |
0% |
25% |
50% |
75% |
|
Policing Services |
0% |
0% |
0% |
25% |
50% |
75% |
|
Outdoor Recreation Services |
0% |
0% |
0% |
25% |
50% |
75% |
|
Indoor Recreation Services |
0% |
0% |
0% |
25% |
50% |
75% |
|
Library Services |
0% |
0% |
0% |
25% |
50% |
75% |
|
Administration |
0% |
0% |
0% |
25% |
50% |
75% |
|
Area Specific Charges (Wastewater) |
|
|
|
|
|
|
|
Ward 4-Harrow Service Area |
0% |
0% |
0% |
25% |
50% |
75% |
Subsequent amendments to the Bylaw and an interest rate policy were adopted in 2021.
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