Hamilton taxpayers can expect rate hikes to make up for $54M in lost development charges: city staff
CBC
Hamilton taxpayers will soon be picking up a $54-million tab for developers.
That's a direct result of recent provincial legislation that waives development charges for some types of projects — a major source of revenue the city has relied on to build new infrastructure like roads, sewers, parks and water and fire services, staff told council on Wednesday.
City staff said the $54-million loss was calculated by a consultant they hired in recent months.
The Ford government has not yet provided an alternative way for municipalities to make up the funding gap other than by taxing residents more, said Coun. Brad Clark (Ward 9).
"We have no choice," Clark said. "Our residents, our taxpayers, are going to be paying much more as a result of this stealthful downloading."
City staff estimate next year property taxes will need to increase by 2.8 per cent and water rates by 8.7 per cent, or else it will have to either delay building infrastructure to support population growth or reduce services.
Taxes and water rates will both increase by another one per cent to cover infrastructure funding shortfalls from previous years, said a report by staff.
Council already passed a 5.85 per cent property tax hike for this year's budget back in March.
Historically, development charges are based on the principle that "growth is supposed to pay for growth," said Coun. Craig Cassar (Ward 12).
"I want the public to be clear on what's happening here," he said. "Developers are no longer being required to pay for their fair share of development and that's being transitioned to people already paying taxes in Hamilton."
Sitting beside Cassar at Wednesday's council meeting, Clark was heard saying "shame."
The new development charge exemptions apply to affordable housing, non-profit housing and in the future some "attainable" housing, said Victoria Podbielski, press secretary for Steve Clark, minister of municipal affairs and housing. Attainable housing has not yet been defined by the province.
Charges will be reduced for purpose-built rentals.
"Hamilton will continue to be able to charge development fees on most other market housing," Podbielski said in a statement.
