Development charges and the growth-money question
Last verified June 17, 2026 · Every claim links to its source · Jump to sources
The short version
On June 17, 2026, Ramara council held a special meeting to decide whether to apply to the new federal-provincial Development Charge Reduction Program (DCRP), ahead of a provincial deadline of 10 a.m. on June 19. The program pays municipalities to cut development charges by 30 to 50 percent for three years to make new housing cheaper to build. Staff prepared Report TR-03-26; the recommended motion was to receive the report as information, meaning no application. The report's own analysis is that the program is built for fast-growing municipalities, that Ramara's largest needs are repair projects the program will not fund, and that the dollars at stake are small relative to the cost of the projects that would qualify. [Report TR-03-26]
What is a development charge?
A development charge (DC) is a one-time fee a municipality collects when a new home or building is constructed, meant to make new development pay for the new infrastructure it requires (roads, water, sewer) so the cost does not fall entirely on existing taxpayers and ratepayers. Ramara levies DCs township-wide, with area-specific sanitary sewer and water charges for Bayshore and for Brechin/Lagoon City. There is no area-specific sewer and water DC for the Rama Road service area, though the study for it is complete. As of March 30, 2026, the municipal DC on a single or semi-detached home was $10,465 township-wide, $42,919 in Bayshore, and $31,229 in Brechin/Lagoon City (each inclusive of the township-wide charge; County and school board charges are separate). [Report TR-03-26; Township: Development Charges]
What the DCRP actually does
The DCRP is part of the $8.8 billion Canada-Ontario Partnership to Build, announced March 30, 2026. The core trade: a municipality agrees to reduce its development charges by 30 to 50 percent or more, across all residential types in all areas, and hold that reduction for three years. In exchange, senior governments help fund housing-enabling infrastructure. [Ontario: DCRP; Report TR-03-26]
Key terms, from the program guidelines:
- What it funds: new or expanded housing-enabling infrastructure (water, wastewater, stormwater, roads, transit) and some community infrastructure. Projects to repair or rehabilitate existing infrastructure are explicitly ineligible.
- Cost share: up to 90 percent from the federal and provincial governments, with at least 10 percent from the municipality, drawn from non-DC sources.
- Who can apply: municipalities with an active DC by-law in place as of March 30, 2026.
- How it is judged: depth of the DC cut, number of housing units enabled, and size of the municipal contribution. Shovel-ready, housing-enabling projects are prioritized.
- Timelines: a single competitive intake, applications due 10 a.m. June 19, 2026; agreements signed by August 15, 2026; construction started by July 31, 2030 and complete by October 31, 2035.
- Money flows on milestones, funding is not guaranteed, it cannot be stacked with other housing-enabling infrastructure programs on the same project, and it can be clawed back if housing targets are not met.
What the report put in front of council
Staff identified two projects from the Township's 2024 DC Background Study that could in theory qualify, and laid out the trade-offs of applying versus not. [Report TR-03-26]
Project 1 — Rama Road water and sanitary sewer
A new service area built out in full.
- Estimated cost: about $275.4 million (2024 dollars)
- Possible DCRP share at 90 percent of eligible costs: about $175.7 million
- Township share, including ineligible soft costs and the benefit-to-existing portion: about $99.7 million
- Units enabled: roughly 3,567
- Catch: there is no area-specific sewer and water DC for this area, so there is no rate to reduce, which the report says may affect eligibility and the likelihood of approval.
Project 2 — Brechin/Lagoon City sewer servicing
A new treatment facility, since the existing one is land-constrained.
- Estimated cost: about $51.7 million (2024 dollars)
- Possible DCRP share at 90 percent of eligible costs: about $10.8 million
- Township share: about $40.9 million
- Units enabled: roughly 1,890
- Better aligned, because an area-specific DC by-law exists to reduce. But current Health and Safety grant work already expands capacity by about 700 to 900 units, which the report describes as full buildout of the existing system, and developer details remain largely undefined.
The numbers behind the decision
Development charge revenue is small and has been falling. Over 2022 to 2025 it averaged about $246,232 a year ($338,524 in 2022, $206,321 in 2023, $227,011 in 2024, $213,072 in 2025). A 30 to 50 percent cut would forgo roughly $74,000 to $123,000 a year, or about $222,000 to $369,000 over three years. Staff expect any grant might land in that same range. In their words, even if the funding arrives, it would cover only a very small portion of project costs that run to tens or hundreds of millions, leaving the Township responsible for the large balance. [Report TR-03-26]
What the report itself flags as risks
In weighing whether to apply, staff list these concerns, among others. They are the Township's own words, not commentary:
- Forgone DC revenue is guaranteed, while the grant is competitive and uncertain.
- No guarantee that new home sales or construction will increase, and a risk that the new infrastructure will not have the users to fund its future operating costs.
- Soft costs (design, engineering, legal, permitting, insurance) are ineligible and fall to the Township.
- Payments are reimbursement-based, funding can be clawed back if housing targets are not met, and the municipality is responsible for any cost overruns.
- The benefit-to-existing share and the minimum 10 percent must come from non-DC sources such as the tax levy or reserves.
The report also states plainly that the primary beneficiaries of this funding would be future taxpayers, because the program supports growth-related infrastructure rather than providing direct relief to the existing tax base. On the report's cover, the Strategic Priority Areas box is marked Not Applicable, including the Strategic Growth priority. [Report TR-03-26]
The bigger picture: the repair track vs the growth track
The DCRP is one of several provincial programs that tie funding to new housing, and it draws a sharp line Ramara keeps running into. The program will not fund repair or rehabilitation of existing infrastructure. Ramara's largest and most urgent project, the Bayshore rebuild, is exactly that kind of work, funded instead through the Health and Safety Water Stream. The projects that could qualify here are growth projects that exist on paper in the DC study but are not serviced or shovel-ready: Rama Road has no servicing in the ground and no area-specific DC to reduce, and the Brechin/Lagoon City growth case is thin once current grant work fills the existing system. [Report TR-03-26; Hub: Wastewater brief]
This connects directly to the rate question many residents raise. Water and wastewater costs are spread across a small number of connected households, so when that base does not grow, fixed costs keep landing on the same ratepayers, which is part of why rates have risen 13 to 15 percent a year. Repair grants keep the systems compliant but do not expand the base. Growth funding could, but only with serviced land ready to build on. Ramara's 2023 to 2026 Strategic Plan frames the direction as responsible and sustainable growth while preserving rural heritage, so how much serviced growth to pursue, and where, is a genuine community choice, not only a financial one. [Hub: Wastewater brief; Township: Strategic Plan]
Still unclear, to confirm
- The council vote of June 17, 2026, pending posting of the minutes.
- Whether any future intake, or the promised rural, small and northern municipality funding stream, changes the picture for Ramara.
Sources
Township of Ramara — Report TR-03-26, Development Charge Reduction Program (June 17, 2026 special meeting); Ontario — Development Charge Reduction Program; Township of Ramara — Development Charges; Township of Ramara — 2023-2026 Strategic Plan; Ramara Hub — Wastewater brief.