Quote:
Originally Posted by bradnixon
It just doesn't work like that though. Development charges across the city are put into a big pot and then fund a number of things. So development downtown is paying for suburban projects and vice versa.
If you look at the Transportation budget page 56, you will see that the "Integrated Road, Sewer & Water Program" (which is what funds full reconstructions like Elgin and Montreal Rd) shows a $0 contribution from development charges. It's about 50/50 between taxes and water/sewer rates.
I think it's a big myth that Nepean and Gloucester were somehow miraculously debt free. Most of their major infrastructure was being paid for by RMOC. So while the cities themselves may have not incurred any debt, the region did in order to develop them.
|
I did some recent research on development charges. Gloucester and Nepean introduced these charges to fund extension of services to new neighbourhoods. Gloucester first brought them in to extend water and sewer services to Beacon Hill. The Regional Municipality also introduced development charges (on the same houses being built in Gloucester and Nepean) to fund regional road improvements. So, your comment on debt is not really valid.
Ottawa, on the other hand, put them in a pot, something that was extended to all the former municipalities with amalgamation. This was a source of resentment at that time. Placing the charges in a pot made sense for Ottawa because most of the area within the city limits was already developed before amalgamation. Maybe certain projects are funded in different ways but nevertheless, putting the money in a pot, was not the original purpose of development charges.
We seem to be getting further and further away from funding civic projects from general property taxes as a way to make things look better than they are. Instead, we are funding these things with even more regressive fees that are increasing at a pace well above inflation.
We talk about placing more restrictions on suburban development, when very high development charges are already doing this in theory. As I said, adding fees on new development just pushes housing prices higher everywhere. That may be necessary to fund projects, but it does affect general affordability of housing for everybody. So disincentives don't work. Despite the tens of thousands of development charges on new housing in the suburbs, housing will always be more expensive in more central neighbourhoods unless they are in undesirable areas.