Penetanguishene development charges to rise 15.6% in 2023

Rising costs are commonplace these days, and the municipal sector is no exception.

A development charge report for 2023 was brought to Penetanguishene council at the recent regular meeting, noting that those charges would be adjusted as of Jan. 1, 2023.

As per the 2022 third quarter Statistics Canada construction price index, the Toronto census metropolitan area percentage for non-residential building cost index was listed at an annual 15.6 per cent change.

Coun. George Vadeboncoeur called the increase “quite substantial”; the indexing rate for the town’s development charge had an increase of 11.6 per cent in 2022.

“Everybody knows that construction costs are increasing; pipe, if you can get it, lumber, etc.,” Vadeboncoeur explained. “It’s a reflection of what construction costs are.

“The municipality collects development charges to undertake capital work and to address growth, and when the town pays for that, it needs to have the funds based on what those costs are. So that’s why it’s going up that much," Vadeboncoeur explained.

Within the report, it was stated that the concept of development paying for development was important in minimizing the impact on the general tax levy.

The 2023 development charge annual indexing report can be located on the agenda page of the Town of Penetanguishene website.

Meetings of Penetanguishene council are held on the second Wednesday of each month, and can be watched live on Rogers TV cable 53, or on the Rogers TV website.

Archives of council meetings are located on the Town of Penetanguishene YouTube channel.

Derek Howard, Local Journalism Initiative Reporter, MidlandToday.ca