More Homes Built Faster Act Response

Like municipalities across the province – we have significant concerns about the More Homes Built Faster Act – and in particular, the extent of changes made to the development charges municipalities can collect. The Town issued a news release about its concerns on December 7, 2022. The following statement provides some additional clarification.

East Gwillimbury is Canada’s fastest growing municipality and is designated as a major growth centre by the province. The Town is in a solid financial position and is one of Ontario’s few debt free municipalities. The changes to development charges with the More Homes Built Faster Act will have a devastating financial impact on our community. Development charges pay for the infrastructure we all depend on – roads, water and wastewater systems, sidewalks, parks, trails, and facilities.

With a reduction in development charges, we will need to find alternative sources of revenue to pay for the much-needed infrastructure.  For example, we are expecting a $10 to $15 million shortfall for the Health and Active Living Plaza and may need to revisit existing financial plans for construction costs.

The Town is committed to maintaining a strong financial position and uses several revenue sources to fund operations and infrastructure. These sources include development charges, government grants, partnerships, and property taxes. If no other revenue sources are identified, the Town may need to increase the amount of tax revenue it collects to cover the reduction in development charges.

With the Act, over the next 10 years, the Town foresees a potential $40 to $70 million shortfall in development charges. To put this in perspective, the Town currently collects approximately $27 million in property taxes to fund ongoing annual operations.

While tax increases wouldn’t be immediate, over time there could be a financial impact to residents through an increase in property taxes if we cannot find alternative funding sources.

The Town supports working collaboratively with the province to address this issue and continues to call on the province to repeal the financial elements of this legislation.