Funding New Subdivisions

When City Council approves a new subdivision, it commits to providing services to the residents. These services range from roads and transit to drinking water, parks and social services.

Many services are paid for through general revenue, e.g., social services, or through user fees, e.g., admission to recreation facilities. The City also collects “developer levies” for infrastructure to serve new subdivisions. The levies cover roads, transit buses, police stations, fire halls, water and sewer lines/treatment plants, recreation centres, libraries.

Under levies approved by the old Council, developers pay less than half the total cost. Averaged out over five years, $80 million/year will come from existing communities to make up the difference (The Opportunity to Manage Growth Sustainably).

The new Council will decide if the current levies should be extended, possibly reducing the cost to existing communities to around $40 million/year. Alternatively, Council could raise or lower the levies, decreasing or increasing the cost imposed on existing communities.