C.N. Watson and Associates Ltd.
4304 Village Centre CourtTelephone (905) 272-3600Mississauga, OntarioFax (905) 272-3602
November 6, 1995Mr. John W. Livey, M.C.I.P.Executive DirectorGTA Task Force393 University Avenue
20th Floor -2001
Toronto, OntarioM5G 1E6Dear Sir:Further to your letter of October 4,1995, we are providing preliminary input relative to yourfirst question, namely, does the schedule of development charges that is traditionally usedmake proper provision for servicing cost variances that relate to differences in density? One
of the questions you pose is, “Should there be the same charge for a sixty foot lot versus athirty foot lot?” or alternatively, “Does a three acre apartment site with 200 units demand
the same local Regional services as a 200 unit, 100 acre subdivision site?”If it is accepted, in accordance with Section 5 of Regulation 267 of the Development ChargesAct, that a development charge should generally reflect differing servicing costs for different
types of development, then the question is,“Is there a significant difference in municipal
servicing cost if 100 people are accommodated in an apartment building on one acre of landversus 100 people in single-detached units on five acres?”There certainly is a difference in terms of local services, particularly street and pipe lengths.However, development charges are concerned only with net municipal capital costs and the
capital costs of those local works is normally borne by landowners, pursuant to asubdivision agreement or severance condition.The fact that a municipality will incursomewhat higher operating costs and eventually higher capital replacement costs, is notsomething that can be reflected in the development charge under the Act.
The requirement for many municipal services is population-based. That is, water and sewer
example varies largely with population, and treatment
facilties aregenerally sized accordingly. The same holds true of services such as parks and recreation,
police, hospitals, health and social services, and libraries. Thus, for these services, the capitalcost to the municipality should be similar or identical for the same population, irrespective
of the density of the development in which it is accommodated,