Council direct staff to re-evaluate funding for future growth

Water and wastewater servicing allocation program approved

April 13, 2010 – For immediate release
Town Council approved the Region’s 2009 water and wastewater servicing allocation program but expressed concerns about the future costs this program would have on the tax base. Council directed staff to re-evaluate the funding methods for the 2011 program to minimize the tax impact of new services required for the New Communities of Oakville.

“Council faces constraints on the services that can be assigned to development charges. Alternative funding methods will be required to minimize the cost of growth on current residents,” said Oakville Mayor Rob Burton. “While the province requires increased housing densities through their Growth Plan, they have not expanded the Development Charges Act to provide adequate funding mechanisms to pay for this significant shift in policy.”

The Region’s 2009 water and wastewater servicing allocation program for Oakville will service approximately 1000 new homes just south of Dundas, and up to 3000 new homes, north of Dundas Street, in the New Communities of Oakville.

“Due to the size of this year’s allocation program it’s affordable, but moving forward the program is expected to expand significantly as development unfolds in the New Communities of Oakville,” added Burton. “With our Development Charges By-law being challenged at the Ontario Municipal Board, and the potential contribution to the new hospital, if one is made, under review, we need to take a hard look at how we are going to fund this program in the years to come to ensure it’s cost effective.”

In addition, staff will be re-evaluating the Financial Impact Analysis for North Oakville by reviewing the funding of an enhanced transit system to support the transit-first approach adopted by Council and required by the province’s Growth Plan. Under the Development Charges Act, the cost of transit assigned to growth is based on the past 10 years of service delivery, and does not account for the future expansion mandated by the province.

In November, Council considered the North Oakville Financial Impact Analysis which identified the impact of the North Oakville East and West Secondary Plans on the tax rate as a 17.72 per cent increase from 2008 to 2031. This equates to an annual average increase of 0.77 per cent; however, the actual annual increase would vary from year to year. The financial impact was calculated assuming that the 2009 Development Charges by-law was in place.

Town Council’s approved 2009 Waste and Wastewater Servicing Allocation program will go before Halton Regional Council for final approval.

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For more information contact:

Jane Clohecy
Commissioner, Planning and Development
Town of Oakville
905-845-6601, ext. 4243
jclohecy@oakville.ca

Gisèle Shaw
Manager, Corporate Communications
Town of Oakville
905-845-6601, ext. 3166
gshaw@oakville.ca


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Council direct staff to re-evaluate funding for future growth