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Staff Report
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Report To: General Government Committee
Date of Meeting: March 9, 2020 Report Number: FND-003-20
Submitted By: Trevor Pinn, Director of Finance/Treasurer
Reviewed By: Andrew C. Allison, CAO By-law Number:
File Number: Resolution#: GG-171-20
Report Subject: Community Benefits Charge Update
Recommendation:
1. That Report FND-003-20 be received for information.
Municipality of Clarington
Report FND-003-20
Report Overview
Page 2
The Province of Ontario released draft regulations pertaining to the Community Benefits
Charge. These regulations propose to move recreation facilities, parks and library services
back to eligible development charge services. The Province is also looking for feedback on
seven key areas related to Community Benefits Charges.
1. Background
Bill 108 — More Choice Homes Act
1.1 Bill 108, More Homes, More Choice Act, 2019 received Royal Assent on June 6, 2019.
While it has received Royal Assent, the Act is not fully proclaimed and enacted. The
Province of Ontario released two proposed regulations on June 21, 2019.
1.2 The Act proposed a new Community Benefits Charge (CBC) under the Planning Act
while removing "soft services" from eligible services under the Development Charges
Act ("DCA").
1.3 The DCA was amended to move from a list of ineligible services to a list of eligible
services which included (as it relates to the Municipality of Clarington):
• Storm water drainage and control services
• Services related to a highway as defined in subsection 1(1) of the Municipal Act, 2001
• Fire protection services
• Other services as prescribed
1.4 Services for library, parks, recreation were anticipated to be eligible as a CBC and
collected based on a fee subject to a land value cap. The mechanics for the calculation
were to be provided in a proposed regulation.
1.5 A proposed regulation in June 2019 had a transitional date of January 1, 2021.
Municipality of Clarington
Report FND-003-20
Draft Regulation
Page 3
1.6 On February 28, 2020 a draft regulation was posted by the Province on the
Environmental Registry of Ontario and is attachment #1 to this report. The Province is
requesting comment by March 30, 2020.
1.7 The Province is proposing to prescribe certain services as being eligible for
development charges. These services would include public libraries, parks development
(other than acquiring land for parks) and recreational facilities.
1.8 The CBC would complement development charges by giving municipalities flexibility to
fund growth -related capital infrastructure costs of other community services such as
park land, affordable housing or building childcare facilities. I would note that affordable
housing and childcare facilities are the responsibility of the Region of Durham and not a
local responsibility.
1.9 If a municipality adopted a CBC, they would no longer be able to apply the Parkland
Dedication under the Planning Act. The current requirement is 5% for residential
development and 2% for commercial development of the land area. The proposed limit
for a lower -tier municipality charging CBC is 10% of the land value the day before the
building permit is issued.
1.10 The Province is seeking feedback on seven areas:
1. Required content of a community benefits charge strategy
2. Services eligible to be funded through development charges
3. Percentage of land value for determining a maximum community benefits charge
4. Timeline to transition to the new community benefits charge regime
5. Community benefits charge by-law notice
6. Minimum interest rate for community benefits charge refunds where a by-law has
been successfully appealed
7. Building code applicable law
1.11 It is noted that the transition timeline has been amended from January 1, 2021 to 12
months after the regulation comes into effect. This provides municipalities more time to
address how they wish to implement community benefits charges, if at all
1.12 The proposed regulations for by-law notice and minimum interest on successfully
appealed by-laws are similar to those already in place for development charges.
Municipality of Clarington
Report FND-003-20
Page 4
1.13 Draft regulations from June 21, 2019 (see attachment #2) propose to exempt long-term
care homes, retirement homes, universities and colleges, certain developments of the
Royal Canadian Legion, hospices and non-profit housing from the community benefit
charge. The recently released proposal does not change that proposal.
1.14 Draft regulations from June 21, 2019 propose several excluded services for which CBCs
may not be charged, which are consistent with the former DC ineligible service list
including:
1. Cultural or entertainment facilities
2. Tourism facilities
3. Hospitals
4. Landfill sites and services
5. Facilities for the thermal treatment of waste
6. Headquarters for the general administration of municipalities and local boards
1.15 The new proposal does not expand or retract on the list of ineligible services. Given
that these services were not previously eligible for development charges there would be
no financial impact to the Municipality as we were not previously collecting funds.
2. Impacts to the Municipality of Clarington
Increased Eligible Services for Development Charges
2.1 With the proposal to move recreation facilities, parks (non -land) and library services to
eligible services under the DCA, there is more certainty that the growth -related costs for
these services are able to be funded from development charges, which are based on
the cost to provide those services, rather than a land value (which is not tied to the cost
to provide the service).
2.2 Further, as there are no longer mandated rebates for services, all of these services are
eligible to be funded 100% from development charges. The calculation of development
charges does take into account the benefit for existing users, as well as the historical
service level (i.e. the amount that the municipality spent) over the past 10 years which
may result in recoverable amount which is below 100%; however up until now at least
10% plus those other deductions would be taxpayer funded.
Municipality of Clarington Page 5
Report FND-003-20
Current Eligible Services No Longer Eligible for Development Charges
2.3 The Municipality currently recovers development charges for animal services and
parking. Under the proposed regulations animal services would be a community
benefits charge eligible service. We are awaiting confirmation on whether parking
would be considered related to roads and therefore development charge eligible or if it
would be collected under the CBC.
2.4 The Municipality receives Parkland Dedication under the Planning Act. If a Community
Benefits Charge was deemed needed in order to collect for parking and animal services,
the total charge for the three areas would be no higher than 10% of the land value.
These three services would be subject to similar reporting requirements as the
development charges.
3. Concurrence
Not applicable.
4. Conclusion
It is respectfully recommended that this report be received for information and that staff
provide feedback, where appropriate, to the Province as it pertains to the seven areas,
they are requesting feedback on.
Staff Contact: Trevor Pinn, Director of Finance / Treasurer, 905-623-3379 x.2602 or
tpinn@clarington.net.
Attachments:
Attachment 1 — Environmental Registry of Ontario Posting 019-1406 pertaining to Community
Benefits Authority Under the Planning Act, the Development Charges Act and the Building
Code Act dated February 28, 2020
Attachment 2 — Environmental Registry of Ontario Posting 019-0183 pertaining to Community
Benefits authority dated June 21, 2019
Attachment 3 — Letter dated February 28, 2020 from Watson & Associates Economists Ltd.
Interested Parties:
There are no interested parties to be notified of Council's decision.
Proposed Regulatory Matters Pertaining to Community Benefits Authority Under the Plan... Page 1 of 8
Attachment 1 to Report FND-003-20
Ontario a Environmental Registry of Ontario
Proposed Regulatory Matters Pertaining to Community
Benefits Authority Under the Planning Act, the
Development Charges Act, and the Building Code Act
ERO (Environmental
019-1406
Registry of Ontario)
number
Notice type
Regulation
Act
Planning Act, R.S.O. 1990
Posted by
Ministry of Municipal Affairs and Housing
Notice stage
Proposal
Proposal posted
February 28, 2020
Comment period
February 28, 2020 - March 30, 2020 (31 days) Open
Last updated
February 28, 2020
This consultation closes at 11:59 p.m. on:
March 30, 2020
Proposal summary
Proposed Regulatory Matters Pertaining to Community Benefits
Authority Under the PlanningAct, the Development Charges Act, and
the Building Code Act
Proposal I. INTRODUCTION
details In May 2019, the Minister of Municipal Affairs and Housing released More Homes, More
Choice: Ontario's Housing Supply Action Plan. In support of the Action Plan, the Minister of
Municipal Affairs and Housing introduced the More Homes, More Choice Act, 2019 (Bill
108) which received Royal Assent on June 6, 2019. Schedule 12 of the Act, once proclaimed,
establishes a new authority under the Planning Act for municipalities to charge for
community benefits with respect to land to be developed or redeveloped. Community
benefits charges are intended to fund municipal infrastructure for community services,
such as land for parks, affordable housing and child care facilities, that are needed to
support new residents and businesses associated with new development.
On November 6, 2019, amendments to the community benefits charge provisions under
the Planning Act were introduced through the Plan to Build Ontario Together Act, 2019. The
Bill received Royal Assent on December 10, 2019. The amendments, set out under
Schedule 31 of the Act, include new transition provisions for alternative parkland
dedication and a mechanism to appeal a municipality's community benefits charge by- law
to the Local Planning Appeal Tribunal.
The community benefits charge authority has not been proclaimed and is not in effect at
this time.
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This is the second regulatory proposal that the government has posted for public feedback on the
proposed components of a new community benefits charge authority. The initial regulatory proposal was
posted on the Environmental Registry of Ontario on June 21, 2019 ("Proposed new regulation pertaining
to the community benefits authority under the Planning Act", ERO 019-0183).
This proposal outlines additional matters for public input to inform the further development of the
community benefits charge authority and regulation under the Planning Act.
II. PROPOSAL FOR PUBLIC COMMENT
This proposal outlines several matters related to the community benefits charge authority under the
Planning Act.
The changes made by the More Homes, More Choice Act, 2019 will mean that municipalities will have
two primary funding streams to pay for the increased need for services due to new development.
Development charges are a mechanism for municipalities to pay for the capital costs of infrastructure like
roads and sewers associated with new development. The government is also seeking feedback in this
proposal on changes to the types of services that could be funded through development charges. It is
proposed that development charges could also pay for the capital costs of certain community services
such as public libraries, parks development (other than acquiring land for parks) and recreational facilities
(see Section #2).
The new community benefits charge would complement development charges by giving municipalities
the flexibility to fund growth -related capital infrastructure costs of other community services. For
example, funds generated through community benefits charges could be used to support community
priorities such as acquiring land for parks, supporting affordable housing or building child care facilities
which will be needed due to growth.
A municipality could choose to collect development charges to fund the development of new park
facilities or enhance existing parks such as playgrounds and splash pads. To acquire the land needed to
build new parks, a municipality would have the option of using one of the following tools under the
Planning Act:
1. A municipality could apply the basic parkland dedication rate in which a maximum
of either 5% (for example, for a residential development) or 2% (for a commercial or
industrial development) of a proposed development is dedicated as parkland or
cash -in -lieu is provided (section 42 "Conveyance of land for park purposes" and
section 51.1 "Parkland" under the Planning Act).
2. Alternatively, a municipality could establish a community benefits charge by-law to
collect funds to acquire land for parks as well as other community services such as
affordable housing and child care. If both a developer and municipality agree, a
developer could provide land for parks (rather than a payment). The agreed -upon
value attributed to the in -kind parkland contribution would be applied toward the
community benefits charge payable.
If a municipality has a community benefits charge by-law in place it cannot apply the basic parkland
dedication provisions of the Planning Act.
To implement the new community benefits charge authority, the province is seeking feedback on the
following regulatory matters under the Planning Act, the Development Charges Act and the Building
Code Act:
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1. Required content of a community benefits charge strategy
2. Services eligible to be funded through development charges
3. Percentage of land value for determining a maximum community benefits charge
4. Timeline to transition to the new community benefits charge regime
5. Community benefits charge by-law notice
6. Minimum interest rate for community benefits charge refunds where a by-law has
been successfully appealed
7. Building code applicable law
1. Required Content of a Community Benefits Charge Strategy
Before passing a community benefits charge by-law, a municipality must prepare a community benefits
charge strategy. The strategy must identify the items that a municipality intends to fund through
community benefits charges. It must also comply with any requirements that may be prescribed in
regulation regarding the mandatory content that a strategy should address. In preparing a community
benefits charge strategy, a municipality must consult, but has the flexibility to determine their
consultation approach.
Proposal
To provide greater clarity about the components of a community benefits charge strategy, it is proposed
that a municipality would need to include the following content in their strategy:
1. The anticipated type, amount and location of development or redevelopment that
would be subject to a community benefits charge;
2. The anticipated increase in the need for a specific community service (for example,
the acquisition of land for parks, affordable housing, child care, etc.) resulting from
new development or redevelopment;
3. A parks plan that examines the need for parkland in the municipality;
4. The amount of parkland per person currently being provided in the municipality,
and if this is planned to increase, decrease or stay the same;
5. The capital costs associated with the increased need for a specific community
service resulting from new development or redevelopment;
6. The excess capacity that exists in those specific services (for example, the extra
capacity that exists in a service that is not currently being used);
7. Whether the increased provision of those specific services would also serve existing
residents (for example, existing residents may also benefit from new child care
facilities that are needed as a result of new development or redevelopment); and,
8. Any capital grants, subsidies, or contributions from other levels of government or
other sources like donations that are anticipated to be made to support those
specific services.
2. Services Eligible to Be Funded Through Development Charges
The Development Charges Act provides authority for municipalities to impose development charges to
pay for the increased capital costs of specific services that are needed as a result of new growth.
The services that are eligible to be funded through development charges are listed under subsection 2(4)
of the Development Charges Act. The list includes a provision for other services that may be prescribed
in regulation. The Planning Act stipulates that services funded by development charges may not be
funded by community benefits charges.
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When proclaimed, the More Homes, More Choices Act, 2019 will make waste diversion and ambulance
services fully recoverable through development charges.
The government is proposing to prescribe additional services to be funded under the Development
Charges Act, through regulation.
Proposal
It is proposed that the following services would be identified in regulation under subsection 2(4) of the
Development Charges Act:
1. Public libraries, including library materials for circulation, reference or information
purposes;
2. Long-term care;
3. Parks development, such as playgrounds, splash pads, equipment and other park
amenities (but not the acquisition of land for parks);
4. Public health; and,
5. Recreation, such as community recreation centres and arenas.
Development charges may be imposed to fully recover the capital costs related to the provision of these
proposed services due to new growth. These proposed services would be ineligible to be funded through
community benefits charges.
3. Percentage of Land Value for Determining a Maximum Community Benefits
Charge
The community benefits charge authority established through the More Homes, More Choice Act, 2019,
includes a mechanism to determine the maximum community benefits charge payable for any particular
development. The community benefits charge payable cannot exceed the amount determined by applying
a prescribed percentage to the value of the land under development.
The Ministry is seeking feedback on the proposed prescribed percentages through this posting.
Proposal
The proposed percentages of land value that would be prescribed in regulation under the Planning Act
would be structured as follows:
• Single -tier municipalities: 15%
• Lower -tier municipalities: 10%
• Upper -tier municipalities: 5%
In any particular case, the community benefits charge levied by a municipality could not exceed the
amount determined by applying the applicable proposed percentage to the value of the land that is
subject to development. The land value would be calculated as of the valuation date, which is the day
before the date the building permit is issued in respect of the development or redevelopment.
The community benefits charges levied by municipalities would support the growth- related capital costs
of acquiring land for parks, and other community benefits required because of development, such as child
care facilities, affordable housing, social services, parking and by-law enforcement. There would need to
be a connection between the community benefits charge levied and the increased need for community
services associated with new development.
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Different percentages are being proposed for single, upper and lower -tier municipalities to reflect the
varying service delivery requirements of each tier of municipality to service new growth with community
amenities. This percentage structure ensures that the combined percentage for upper and lower -tier
municipalities would be equal to the percentage for single tier municipalities.
4. Timeline to Transition to the New Community Benefits Charge Regime
The date by which municipalities must transition to the community benefits charge authority, if they wish
to collect funds for community benefits, would be prescribed in regulation under the Development
Charges Act, 1997. The prescribed date would be the deadline for establishing a community benefits
charge strategy and by-law in order to charge for the capital costs of services funded through community
benefits charges.
The community benefits charge by-law would set out the charge payable in any particular instance, any
municipal exemptions, and other details.
Proposal
It is proposed that the specified date for municipalities to transition to the community benefits charges
regime would be one year after the date the proposed community benefits charge regulation comes into
effect.
This transition period would allow municipalities to prepare community benefits charge strategies and
pass by-laws if they choose to implement a community benefits charge regime.
5. Community Benefits Charge By-law Notice
The Plan to Build Ontario Together Act, 2019 amended the Planning Act to establish a mechanism by
which a municipality's community benefits charge by-law could be appealed to the Local Planning
Appeal Tribunal. A municipality would be required to provide notice to the public when it passes a
community benefits charge by-law. To implement the by-law appeal mechanism, requirements associated
with how to provide public notice would be prescribed in regulation.
Proposal
To implement the appeal mechanism, it is proposed that upon passage of a community benefits charge by-
law, a municipality would be required to comply with the following notice provisions. These provisions
are similar to the notice provisions under the Development Charges Act regarding the passage of a
development charges by-law:
1. Notice would be required to be given through newspaper or to every land owner in
the area covered by the by-law through personal service, fax, mail or email.
2. Notice would also be required to be provided by personal service, fax, mail or email
to those individuals who specifically request notice, the clerk of the lower or upper -
tier municipality (if and as applicable), and the secretary of every school board
having jurisdiction in the area covered by the by-law.
3. In order to facilitate public awareness of the passage of a community benefits
charge by-law, notice would include the following:
• i. A statement that the council of the municipality has passed a community
benefits charge by-law.
• ii. A statement setting out when the by-law was passed.
• iii. A statement that any person or public body may appeal the by-law to the Local
Planning Appeal Tribunal by filing with the clerk of the municipality a notice of
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appeal setting out the objection to the by-law and the reasons supporting the
objection.
• iv. A statement setting out the last day for appealing the by-law.
• v. An explanation of the charges imposed by the by-law.
• vi. A description of the lands to which the by-law applies, a key map showing the
lands to which the by-law applies, or an explanation why no description or key
map is provided.
• vii. An explanation of where and when persons may examine a copy of the by-law.
The date on which notice would be deemed to have been given would be:
• The newspaper publishing date if the notice is published by a newspaper,
• The date the fax is sent, if the notice is faxed,
• The date the email is sent, if the notice is emailed, and
• The date the notice is mailed, if the notice is sent by mail.
6. Minimum Interest Rate for Community Benefits Charge Refunds Where a
By-law Has Been Successfully Appealed
The mechanism to appeal a community benefits charge by-law includes a requirement for municipalities
to provide full or partial refunds in the event of a successful appeal. The interest rate paid on amounts
refunded must not be less than the prescribed minimum interest rate.
Proposal
It is proposed that the minimum interest rate a municipality would be required to pay on amounts
refunded after successful appeals would be the Bank of Canada rate on the date the by-law comes into
force. Alternatively, if the municipality's by-law so provides, the minimum interest rate would be the
Bank of Canada rate updated on the first business day of every January, April, July and October.
This proposal aligns with the prescribed minimum interest rate for refunds of development charges after
successful appeals under the Development Charges Act.
7. Building Code Applicable Law
The Building Code is a regulation under the Building Code Act, 1992. The Building Code sets out
minimum administrative and technical requirements for the construction, renovation, demolition and
change of use of buildings. It also establishes a list of applicable law that must be satisfied in order to
receive a building permit. Municipalities enforce the Building Code and are responsible for issuing
building permits for the construction, renovation, demolition or change of use of buildings.
Proposal
It is proposed that the Building Code be amended to add the community benefits charge authority to the
list of items under Division A - Article 1.4.1.3 Definition of Applicable Law. This amendment would
establish a mechanism for ensuring the payment of community benefits charges prior to the issuance of a
building permit.
III. PUBLIC COMMENT
Your feedback on the implementation of the community benefits charge authority will inform government
decisions on the development of a new community benefits charge regulation under the Planning Act and
amendments to regulations under the Development Charges Act and Building Code Act.
Submissions may be made online or provided via email to the contact below.
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Supporting Related links
materials Planning Act (https://www.ontario.ca/laws/statute/90pl3)
Development Charges Act. 1997 (https://www.ontario.ca/laws/statute/97d27)
Building Code Act, 1992 (https://www.ontario.ca/laws/statute/92b23)
Related ERO (Environmental Registry of Ontario) notices
Proposed new regulation pertaining to the community benefits authority under the
Planning Act (/notice/019-0183)
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the
materials in person.
Get in touch with the office listed below to find out if materials are available.
Municipal Finance Policy Branch
College Park 13th flr, 777 Bay St
Toronto, ON
M7A 2J3
Canada
416-585-6111
Comment Let us know what you think of our proposal.
Have questions? Get in touch with the contact person below. Please include the ERO
(Environmental Registry of Ontario) number for this notice in your email or letter to the
contact.
Read our commenting and privacy policies. (/page/commenting-privacy)
Submit by mail
John Ballantine
Municipal Finance Policy Branch
College Park 13th flr, 777 Bay St
Toronto, ON
M7A 2J3
Canada
Connect with us
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Contact
John Ballantine
% 416-585-6348
0 john.ballantine@ontarioxa
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Attachment 2 to Report FND-003-20
Ontario a Environmental Registry of Ontario
Proposed new regulation pertaining to the community
benefits authority under the Planning Act
ERO (Environmental
019-0183
Registry of Ontario)
number
Notice type
Regulation
Act
Planning Act, R.S.O. 1990
Posted by
Ministry of Municipal Affairs and Housing
Notice stage
Proposal
Proposal posted
June 21, 2019
Comment period
June 21, 2019 - August 21, 2019 (61 days) Closed
Last updated June 21, 2019
This consultation was open from:
June 21, 2019 Proposal summary
to August 21, 2019 A proposal to make a new regulation under the PianningActto
prescribe matters related to the community benefits authority and
make a consequential amendment to an existing regulation under the
Act.
Proposal The More Homes, More Choice Act, 2099received Royal Assent on June 6, 2019. Schedule
12 of the Act would, upon proclamation, make amendments to the PianningActto provide
details the authority for municipalities to charge for community benefits in order to fund a range
of capital infrastructure for community services that would benefit new development.
There are provisions in Schedule 12 that require additional details to be prescribed by
regulation. The following are matters that the province is proposing to prescribe in
regulation.
Regulatory changes
1. Transition
The amendments to the PianningActin Schedule 12 of the More Homes, More Choice Act,
2019 provide transitional provisions for section 37, and section 42 under the P/anningAct,
and development charges for discounted services (soft services) under the Development
ChargesActto provide the flexibility necessary for municipalities to migrate to the
community benefits charge authority.
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An amendment to the DeveiopmentChargesAct, 1997provides for a date to be prescribed
in regulation that would effectively establish a deadline as to when municipalities must
transition to the community benefits authority if they wish to collect for the capital costs of
community benefits from new development. Beyond the date prescribed in regulation:
• Municipalities would generally no longer be able to collect development charges for
discounted services
• Municipalities would generally no longer be able to pass by-laws to collect funds
under section 37 of the PianningAct
Proposed content
It is proposed that the specified date for municipalities to transition to community benefits is January 1,
2021.
2. Reporting on community benefits
The amendments to the PianningActin Schedule 12 of the More Homes, More Choice Act,
2019provide for municipalities that pass a community benefits by-law to provide the
reports and information that may be prescribed in the regulation to persons prescribed in
regulation.
Proposed content
In order to ensure that community benefit charges are collected and spent on community
benefits in a transparent manner, and for greater accountability, the Minister is proposing
to prescribe reporting requirements that are similar to existing reporting requirements for
development charges and parkland under section 42 of the P/anningAct.
Municipalities would be required annually to prepare a report for the preceding year that would provide
information about the amounts in the community benefits charge special account, such as:
• Opening and closing balances of the special account
• A description of the services funded through the special account
• Details on amounts allocated during the year
• The amount of any money borrowed from the special account, and the purpose for
which it was borrowed
• The amount of interest accrued on money borrowed
3. Reporting on parkland
The amendments to the PianningActin Schedule 12 of the More Homes, More Choice Act,
2019provide that municipalities may continue using the current basic parkland provisions
of the PianningActif they are not collecting community benefits charges. Municipalities
with parkland special accounts will be required to provide the reports and information that
may be prescribed in the regulation to persons prescribed in regulation.
Proposed content
In order to ensure that cash -in -lieu of parkland is collected and used in a transparent manner, the Minister
is proposing to prescribe reporting requirements for parkland.
Municipalities would be required annually to prepare a report for the preceding year that would provide
information about the amounts in the special account, such as:
• Opening and closing balances of the special account
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• A description of land and machinery acquired with funds from the special account
• Details on amounts allocated during the year
• The amount of any money borrowed from the special account, and the purpose for
which it was borrowed
• The amount of interest accrued on money borrowed
4. Exemptions from community benefits
To help reduce the costs to build certain types of development that are in high demand,
amendments to the PianningActin Schedule 12 of the More Homes, More Choice Act, 2019
provides for the Minister to prescribe such types of development or redevelopment in
respect of which a community benefits charge cannot be imposed.
Proposed content
The Minister is proposing that the following types of developments be exempt from
charges for community benefits under the P/anningAct.
• Long-term care homes
• Retirement homes
• Universities and colleges
• Memorial homes, clubhouses or athletic grounds of the Royal Canadian Legion
• Hospices
• Non-profit housing
5. Community benefits formula
The amendments to the PianningActin Schedule 12 of the More Homes, More Choice Act,
2019, provide the authority for municipalities to charge for community benefits at their
discretion, to fund a range of capital infrastructure for community services needed because
of new development.
This capital infrastructure for community services could include libraries, parkland, daycare facilities, and
recreation facilities.
For any particular development, the community benefits charge payable could not exceed the amount
determined by a formula involving the application of a prescribed percentage to the value of the
development land. The value of land that is used is the value on the day before the building permit is
issued to account for the necessary zoning to accommodate the development.
Proposed content
It is proposed that a range of percentages will be prescribed to take into account varying values of land.
In determining the prescribed percentages, there are two goals.
• Firstly, to ensure that municipal revenues historically collected from development
charges for "soft services", parkland dedication including the alternative rate, and
density bonusing are maintained.
• Secondly, to make costs of development more predictable.
This Ministry is not providing prescribed percentages at this time. However, the Ministry would welcome
feedback related to the determination of these percentages. There will be further consultation on the
proposed formula in late summer.
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6. Appraisals for community benefits
The authority to charge for community benefits under the PianningActwould enable
municipalities, at their discretion, to fund a range of capital infrastructure for community
services needed because of new development.
For any particular development, the community benefits charge payable could not exceed an amount
determined by a formula involving the application of a prescribed percentage to the value of the
development land on the day before the building permit is issued.
The amendments to the PianningActin Schedule 12 of the More Homes, More Choice Act,
2019provide for the owner of land proposing to develop a site, to provide the municipality with an
appraisal of the site they are of the view that the community benefits charge exceeds what is legislatively
permitted. Similarly, a municipality can also provide the owner of land with an appraisal if it is of the
view that the owner of the land's appraisal is inaccurate. If both appraisals differ by more than 5 percent,
a third appraisal is prepared.
Proposed content
The Minister is proposing the following:
• If the owner of land is of the view that the amount of a community benefits charge
exceeds the amount legislatively permitted and pays the charge under protest, the
owner has 30 days to provide the municipality with an appraisal of the value of land.
• If the municipality disputes the value of the land in the appraisal provided by the
owner, the municipality has 45 days to provide the owner with an appraisal of the
value of the land.
• If the municipality's appraisal differs by more than 5 percent from appraisal
provided by the owner of the land, the owner can select an appraiser from the
municipal list of appraisers, that appraiser's appraisal must be provided within 60
days.
7. Excluded services for community benefits
Amendments to the PianningActin Schedule 12 of the More Homes, More Choice Act,
2019provide that community benefits charges cannot be imposed for facilities, services or
matters associated with services eligible for collection under the DeveiopmentChargesAct,
1997 It also provides for the province to prescribe facilities, services or matters in respect
of which community benefit charges cannot be imposed.
Proposed content
The Minister is proposing to prescribe that the following facilities, services or matters be excluded from
community benefits:
• Cultural or entertainment facilities
• Tourism facilities
• Hospitals
• Landfill sites and services
• Facilities for the thermal treatment of waste
• Headquarters for the general administration of municipalities and local boards
This would be consistent with the ineligible services list currently found under the
Development Charges Act.
https://ero.ontario.ca/notice/019-0183 2020-03-02
Proposed new regulation pertaining to the community benefits authority under the Plannin... Page 5 of 6
8. Community planning permit system
The community planning permit system is a framework that combines and replaces the
individual zoning, site plan and minor variance processes in an identified area with a single
application and approval process. O. Reg (Ontario ReFulationl 173116'Community
Planning Permits"outlines the various components that make up the system, including the matters that
must be included in the official plan to establish the system, the process that applies to establishing the
implementing by-law and the matters that must or may be included in the by-law.
Proposed content
Amendments to the Planning Actin the More Homes, More Choice Act, 2019establish a
new authority for municipalities to levy charges for community benefits to make
requirements in this regard more predictable. As the community planning permit system
also allows conditions requiring the provision of specified community facilities or services,
it is proposed that a community benefits charge by-law would not be available for use in
areas within a municipality where a community planning permit system is in effect.
In considering making a proposed new regulation and changes to existing regulations
under the Planning Act, the government will continue to safeguard Ontarians' health and safety,
support a vibrant agricultural sector, and protect environmentally and culturally sensitive areas, including
the Greenbelt.
Supporting Related links
materials Planning Act (https://www.ontario.ca/laws/statute/90pl3)
Development Charges Act (https://www.ontario.ca/laws/statute/97d27)
Bill 108, More Homes, More Choice Act. 2019 (https://www.ola.org/en/legislative-
business/bills/parliament-42/session-1/bill-108)
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the
materials in person.
Get in touch with the office listed below to find out if materials are available.
Municipal Finance Policy Branch
Municipal Affairs and Housing
13th Floor, 777 Bay St.
Toronto, ON
M5G 2E5
Canada
9* 416-585-6111
https://ero.ontario.ca/notice/019-0183 2020-03-02
Proposed new regulation pertaining to the community benefits authority under the Plannin... Page 6 of 6
Comment
Commenting is now closed.
The comment period was from June 21, 2019
to August 21, 2019
Connect with us Contact
John Ballantine, Manager
416-585-6300
0 john.ballantine@ontarioxa
https://ero.ontario.ca/notice/019-0183 2020-03-02
Attachment 3 to Report FND-003-20
Watson
& Associates
ECONOMISTS LTD.
February 28, 2020
To Our Development Charge Clients:
Re: Draft Regulations for the Development Charges Act and Planning Act
(Community Benefits Charge Related)
On behalf of our many municipal clients, we are continuing to provide the most up to
date information on the proposed changes to the Development Charges Act (D.C.A.) as
proposed by Bill 108. As of this morning, the Province released updated draft regulation
related to the D.C.A. and the community benefits charge (C.B.C.). This regulation is
posted on the Environmental Registry of Ontario for public comment which is open until
March 30, 2020. Comments may be made at the following website:
• Community Benefits Charge Regulation — https://ero.ontario.ca/notice/019-1406
As we have noted in prior mailings, our firm is a member of the Provincial Technical
Working Committee and provides advice on the methodological approach for the
development of a proposed formula to be used in the C.B.C. calculation. As we
understand, the Province will continue to receive input from this Committee over the
coming weeks.
This letter provides a high-level overview of the regulation proposed for the D.C.A. and
the Planning Act (as it relates to the C.B.C.). This draft regulation is included in the
attached Appendix. Our firm will subsequently provide to you an evaluation of the draft
regulation as well as our formal response to the Province.
Proposed Changes to the Development Charges Act
The prior draft regulations allowed for the following services to remain within the
D.C.:
o Water
o Wastewater
o Storm Water
o Roads
o Fire
o Policing
o Ambulance
o Waste Diversion
• The new draft regulation will also allow the following services to continue with the
D.C.:
o Parks Development (not including land)
o Recreation
Plaza Three Office: 905-272-3600
101-2000 Arentia Rd. Fax: 905-272-3602 HADCA-GEN\Bill 108\Bill 108 Regulations - February 28 2020 Letter to
Mississauga, Ontario www.watsonecon.ca Clients.docx
g
L5N 1V9 00
o Public Libraries
o Long-term Care
o Public Health
• The mandatory 10% deduction is removed for all services that remain eligible in
the D.C.
• Timing regarding payment of D.C.s remains unchanged (i.e. six installments for
rental housing and institutional developments, 21 installments for non-profit
housing)
• Requirement to freeze D.C. amounts for site plan or zoning applications remains
unchanged
Proposed Changes to the Planning Act re: Community Benefits Charges
The community benefits charge will include formerly eligible D.C. services that
are not included in the above listing, parkland dedication and bonus zoning
contributions
The C.B.C. will be imposed as a percentage
land the day before building permit issuance
C.B.C. are as follows:
o Single Tier municipalities: 15%
o Lower Tier municipalities: 10%
o Upper Tier municipalities: 5%
based on the market value of the
The maximum percentages for the
A C.B.C. strategy must be prepared to support the percentage to be imposed.
Elements of the strategy include:
o The C.B.C. strategy will have to set out the amount, type and location of
growth (similar to D.C.)
o There will need to be a parks plan included. This plan will need to identify
the amount of parkland needed for growth
o The strategy will need to identify the amount of parkland per person
currently being provided in the municipality
o The strategy will need to identify the anticipated increase in need for the
service (similar to D.C.)
o There will need to be deductions for excess capacity (similar to D.C.)
o The strategy will need to consider benefit to existing development (similar
to D.C.)
o Grants, subsidies & other contributions will need to be deducted (similar to
D.C.)
Transitional timelines have been modified (i.e. January 1, 2021 is no longer the
deadline). The deadline will be one year after the C.B.C. authority is in effect
C.B.C. Appeal Mechanism — Public notice of C.B.C. by-law passage will be
required (same as rules for D.C. by-law passage notice)
Interest Rate for C.B.C. refunds upon successful LPAT appeal will be the Bank of
Canada rate on the date the by-law comes into force or quarterly (same as D.C.)
Watson & Associates Economists Ltd. PAGE 2
Bill 108 Regulations - February 28 2020 Letter to Clients.docx
Building Code Act will be amended to include section to ensure C.B.C. payment
must take place prior to building permit issuance.
We trust that this high-level summary is informative. As noted earlier, our firm will
subsequently provide to you an evaluation of the draft regulations in more detail, as well
as provide you with our formal response to the Province. In the interim, if you have any
questions regarding the draft legislation, we would be pleased to discuss them with you
further.
Yours very truly,
WATSON & ASSOCIATES ECONOMISTS LTD.
Gary D.'Scandlan, BA, PLE
Director
Andrew Grunda, MBA, CPA, CMA
Principal
Watson & Associates Economists Ltd.
Bill 108 Regulations - February 28 2020 Letter to Clients.docx
PAGE 3
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Appendix A
Draft Regulation
o nta ri oG Environmental Registry of Ontario
Proposed Regulatory Matters Pertaining to
Community Benefits Authority Under the Planning
Act, the Development Charges Act, and the Building
Code Act
E.R.Q. (En.v...i.ronm.e.ntal
019-1406
Reg stry.of..Ontl.rio.)
number
Notice type
Regulation
Act
Planning Act, R.S.O. 1990
Posted by
Ministry of Municipal Affairs and Housing
Notice stage
Proposal
Proposal posted
February 28, 2020
Comment period
February 28, 2020 - March 30, 2020 (31 days) Open
Last updated
February 28, 2020
This consultation closes at 11:59 p.m.
on: Proposal summary
March 30, 2020 Proposed Regulatory Matters Pertaining to Community
Benefits Authority Under the Planning Act, the Development
Charges Act, and the Building Code Act
Proposal I. INTRODUCTION
details In May 2019, the Minister of Municipal Affairs and Housing released More
Homes, More Choice: Ontario's Housing Supply Action Plan. In support of the
Action Plan, the Minister of Municipal Affairs and Housing introduced the More
Homes, More Choice Act, 2019 (Bill 108) which received Royal Assent on June 6,
2019. Schedule 12 of the Act, once proclaimed, establishes a new authority
under the Planning Act for municipalities to charge for community benefits
with respect to land to be developed or redeveloped. Community benefits
charges are intended to fund municipal infrastructure for community services,
such as land for parks, affordable housing and child care facilities, that are
needed to support new residents and businesses associated with new
development.
On November 6, 2019, amendments to the community benefits charge
provisions under the Planning Act were introduced through the Plan to Build
Ontario Together Act, 2019. The Bill received Royal Assent on December 10,
2019. The amendments, set out under Schedule 31 of the Act, include new
transition provisions for alternative parkland dedication and a mechanism to
appeal a municipality's community benefits charge by- law to the Local
Planning Appeal Tribunal.
The community benefits charge authority has not been proclaimed and is not
in effect at this time.
This is the second regulatory proposal that the government has posted for
public feedback on the proposed components of a new community benefits
charge authority. The initial regulatory proposal was posted on the
Environmental Registry of Ontario on June 21, 2019 ("Proposed new regulation
pertaining to the community benefits authority under the Planning Act", ERO
019-0183).
This proposal outlines additional matters for public input to inform the further
development of the community benefits charge authority and regulation under
the Planning Act.
II. PROPOSAL FOR PUBLIC COMMENT
This proposal outlines several matters related to the community benefits
charge authority under the Planning Act.
The changes made by the More Homes, More Choice Act, 2019 will mean that
municipalities will have two primary funding streams to pay for the increased
need for services due to new development.
Development charges are a mechanism for municipalities to pay for the capital
costs of infrastructure like roads and sewers associated with new development.
The government is also seeking feedback in this proposal on changes to the
types of services that could be funded through development charges. It is
proposed that development charges could also pay for the capital costs of
certain community services such as public libraries, parks development (other
than acquiring land for parks) and recreational facilities (see Section #2).
The new community benefits charge would complement development charges
by giving municipalities the flexibility to fund growth -related capital
infrastructure costs of other community services. For example, funds
generated through community benefits charges could be used to support
community priorities such as acquiring land for parks, supporting affordable
housing or building child care facilities which will be needed due to growth.
A municipality could choose to collect development charges to fund the
development of new park facilities or enhance existing parks such as
playgrounds and splash pads. To acquire the land needed to build new parks, a
municipality would have the option of using one of the following tools under
the Planning Act:
1. A municipality could apply the basic parkland dedication rate in which a
maximum of either 5% (for example, for a residential development) or
2% (for a commercial or industrial development) of a proposed
development is dedicated as parkland or cash -in -lieu is provided (section
42 "Conveyance of land for park purposes" and section 51.1 "Parkland"
under the Planning Act).
2. Alternatively, a municipality could establish a community benefits charge
by-law to collect funds to acquire land for parks as well as other
community services such as affordable housing and child care. If both a
developer and municipality agree, a developer could provide land for
parks (rather than a payment). The agreed -upon value attributed to the
in -kind parkland contribution would be applied toward the community
benefits charge payable.
If a municipality has a community benefits charge by-law in place it cannot
apply the basic parkland dedication provisions of the Planning Act.
To implement the new community benefits charge authority, the province is
seeking feedback on the following regulatory matters under the Planning Act,
the Development Charges Act and the Building Code Act:
1. Required content of a community benefits charge strategy
2. Services eligible to be funded through development charges
3. Percentage of land value for determining a maximum community
benefits charge
4. Timeline to transition to the new community benefits charge regime
5. Community benefits charge by-law notice
6. Minimum interest rate for community benefits charge refunds where a
by-law has been successfully appealed
7. Building code applicable law
1. Required Content of a Community Benefits Charge
Strategy
Before passing a community benefits charge by-law, a municipality must
prepare a community benefits charge strategy. The strategy must identify the
items that a municipality intends to fund through community benefits charges.
It must also comply with any requirements that may be prescribed in
regulation regarding the mandatory content that a strategy should address. In
preparing a community benefits charge strategy, a municipality must consult,
but has the flexibility to determine their consultation approach.
Proposal
To provide greater clarity about the components of a community benefits
charge strategy, it is proposed that a municipality would need to include the
following content in their strategy:
1. The anticipated type, amount and location of development or
redevelopment that would be subject to a community benefits charge;
2. The anticipated increase in the need for a specific community service
(for example, the acquisition of land for parks, affordable housing, child
care, etc.) resulting from new development or redevelopment;
3. A parks plan that examines the need for parkland in the municipality;
4. The amount of parkland per person currently being provided in the
municipality, and if this is planned to increase, decrease or stay the
same;
5. The capital costs associated with the increased need for a specific
community service resulting from new development or redevelopment;
6. The excess capacity that exists in those specific services (for example,
the extra capacity that exists in a service that is not currently being
used);
7. Whether the increased provision of those specific services would also
serve existing residents (for example, existing residents may also benefit
from new child care facilities that are needed as a result of new
development or redevelopment); and,
8. Any capital grants, subsidies, or contributions from other levels of
government or other sources like donations that are anticipated to be
made to support those specific services.
2. Services Eligible to Be Funded Through Development
Charges
The Development Charges Act provides authority for municipalities to impose
development charges to pay for the increased capital costs of specific services
that are needed as a result of new growth.
The services that are eligible to be funded through development charges are
listed under subsection 2(4) of the Development Charges Act. The list includes a
provision for other services that may be prescribed in regulation. The Planning
Act stipulates that services funded by development charges may not be funded
by community benefits charges.
When proclaimed, the More Homes, More Choices Act, 2019 will make waste
diversion and ambulance services fully recoverable through development
charges.
The government is proposing to prescribe additional services to be funded
under the Development Charges Act, through regulation.
Proposal
It is proposed that the following services would be identified in regulation
under subsection 2(4) of the Development Charges Act:
1. Public libraries, including library materials for circulation, reference or
information purposes;
2. Long-term care;
3. Parks development, such as playgrounds, splash pads, equipment and
other park amenities (but not the acquisition of land for parks);
4. Public health; and,
5. Recreation, such as community recreation centres and arenas.
Development charges may be imposed to fully recover the capital costs related
to the provision of these proposed services due to new growth. These
proposed services would be ineligible to be funded through community
benefits charges.
3. Percentage of Land Value for Determining a Maximum
Community Benefits Charge
The community benefits charge authority established through the More
Homes, More Choice Act, 2019, includes a mechanism to determine the
maximum community benefits charge payable for any particular development.
The community benefits charge payable cannot exceed the amount
determined by applying a prescribed percentage to the value of the land under
development.
The Ministry is seeking feedback on the proposed prescribed percentages
through this posting.
Proposal
The proposed percentages of land value that would be prescribed in regulation
under the Planning Act would be structured as follows:
• Single -tier municipalities: 15%
• Lower -tier municipalities: 10%
• Upper -tier municipalities: 5%
In any particular case, the community benefits charge levied by a municipality
could not exceed the amount determined by applying the applicable proposed
percentage to the value of the land that is subject to development. The land
value would be calculated as of the valuation date, which is the day before the
date the building permit is issued in respect of the development or
redevelopment.
The community benefits charges levied by municipalities would support the
growth- related capital costs of acquiring land for parks, and other community
benefits required because of development, such as child care facilities,
affordable housing, social services, parking and by-law enforcement. There
would need to be a connection between the community benefits charge levied
and the increased need for community services associated with new
development.
Different percentages are being proposed for single, upper and lower -tier
municipalities to reflect the varying service delivery requirements of each tier
of municipality to service new growth with community amenities. This
percentage structure ensures that the combined percentage for upper and
lower -tier municipalities would be equal to the percentage for single tier
municipalities.
4. Timeline to Transition to the New Community Benefits
Charge Regime
The date by which municipalities must transition to the community benefits
charge authority, if they wish to collect funds for community benefits, would be
prescribed in regulation under the Development Charges Act, 1997. The
prescribed date would be the deadline for establishing a community benefits
charge strategy and by-law in order to charge for the capital costs of services
funded through community benefits charges.
The community benefits charge by-law would set out the charge payable in any
particular instance, any municipal exemptions, and other details.
Proposal
It is proposed that the specified date for municipalities to transition to the
community benefits charges regime would be one year after the date the
proposed community benefits charge regulation comes into effect.
This transition period would allow municipalities to prepare community
benefits charge strategies and pass by-laws if they choose to implement a
community benefits charge regime.
5. Community Benefits Charge By-law Notice
The Plan to Build Ontario Together Act, 2019 amended the Planning Act to
establish a mechanism by which a municipality's community benefits charge
by-law could be appealed to the Local Planning Appeal Tribunal. A municipality
would be required to provide notice to the public when it passes a community
benefits charge by-law. To implement the by-law appeal mechanism,
requirements associated with how to provide public notice would be
prescribed in regulation.
Proposal
To implement the appeal mechanism, it is proposed that upon passage of a
community benefits charge by-law, a municipality would be required to comply
with the following notice provisions. These provisions are similar to the notice
provisions under the Development Charges Act regarding the passage of a
development charges by-law:
1. Notice would be required to be given through newspaper or to every
land owner in the area covered by the by-law through personal service,
fax, mail or email.
2. Notice would also be required to be provided by personal service, fax,
mail or email to those individuals who specifically request notice, the
clerk of the lower or upper -tier municipality (if and as applicable), and
the secretary of every school board having jurisdiction in the area
covered by the by-law.
3. In order to facilitate public awareness of the passage of a community
benefits charge by-law, notice would include the following:
• i. A statement that the council of the municipality has passed a
community benefits charge by-law.
• ii. A statement setting out when the by-law was passed.
• iii. A statement that any person or public body may appeal the by-law
to the Local Planning Appeal Tribunal by filing with the clerk of the
municipality a notice of appeal setting out the objection to the by-law
and the reasons supporting the objection.
• iv. A statement setting out the last day for appealing the by-law.
• v. An explanation of the charges imposed by the by-law.
• vi. A description of the lands to which the by-law applies, a key map
showing the lands to which the by-law applies, or an explanation why
no description or key map is provided.
• vii. An explanation of where and when persons may examine a copy
of the by-law.
The date on which notice would be deemed to have been given would be:
• The newspaper publishing date if the notice is published by a
newspaper,
• The date the fax is sent, if the notice is faxed,
• The date the email is sent, if the notice is emailed, and
• The date the notice is mailed, if the notice is sent by mail.
6. Minimum Interest Rate for Community Benefits Charge
Refunds Where a By-law Has Been Successfully Appealed
The mechanism to appeal a community benefits charge by-law includes a
requirement for municipalities to provide full or partial refunds in the event of
a successful appeal. The interest rate paid on amounts refunded must not be
less than the prescribed minimum interest rate.
Proposal
It is proposed that the minimum interest rate a municipality would be required
to pay on amounts refunded after successful appeals would be the Bank of
Canada rate on the date the by-law comes into force. Alternatively, if the
municipality's by-law so provides, the minimum interest rate would be the Bank
of Canada rate updated on the first business day of everyJanuary, April, July
and October.
This proposal aligns with the prescribed minimum interest rate for refunds of
development charges after successful appeals under the Development Charges
Act.
7. Building Code Applicable Law
The Building Code is a regulation under the Building Code Act, 1992. The
Building Code sets out minimum administrative and technical requirements for
the construction, renovation, demolition and change of use of buildings. It also
establishes a list of applicable law that must be satisfied in order to receive a
building permit. Municipalities enforce the Building Code and are responsible
for issuing building permits for the construction, renovation, demolition or
change of use of buildings.
Proposal
It is proposed that the Building Code be amended to add the community
benefits charge authority to the list of items under Division A - Article 1.4.1.3
Definition of Applicable Law. This amendment would establish a mechanism
for ensuring the payment of community benefits charges prior to the issuance
of a building permit.
III. PUBLIC COMMENT
Your feedback on the implementation of the community benefits charge
authority will inform government decisions on the development of a new
community benefits charge regulation under the Planning Act and
amendments to regulations under the Development Charges Act and Building
Code Act.
Submissions may be made online or provided via email to the contact below.
Supporting Related links
materials Planning Act (https://www.ontario.ca/laws/statute/90p13)
Development Charges Act, 1997
(https://www.ontario.ca/laws/statute/97d27)
Building Code Act, 1992 (https://www.ontario.ca/laws/statute/92b23)
Related ERO (Environmental Registry of Ontario).
notirPr,
Proposed new regulation pertaining to the community benefits
authority under the Planning Act (/notice/019-0183)
View materials in person
Some supporting materials may not be available online. If this is the case, you
can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
Municipal Finance Policy Branch
College Park 13th flr, 777 Bay St
Toronto, ON
M7A 2J3
Canada
416-585-6111
Comment Let us know what you think of our proposal.
Have questions? Get in touch with the contact person below. Please include the
SRO.(E,nv„i,rq,n,m„,nta,IRegistry of„Q,n,a,ri,o,) number for this notice in your email or
letter to the contact.
Read our commenting and privacy_ policies. (/page/commenting_privacy.)
Submit by mail
John Ballantine
Municipal Finance Policy Branch
College Park 13th flr, 777 Bay St
Toronto, ON
M7A 2J3
Canada
Connect With Contact
US John Ballantine
416-585-6348
john.baIlantine@ontario.ca