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    Development Charges By-law

    Fact sheet for public libraries

    Prepared by the Southern Ontario Library Service, January 2010

    What is the Municipal Development Charges By-law?

    In 1990, the Province of Ontario passed the Development Charges Act (DCA) and updated the legislation in 1997, as Development Charges Act, 1997 S.O. 1997, chapter 27. A complete copy of the legislation is posted in the e-Laws section of the Ontario government website.

    This Act authorizes municipalities to pass by-laws for the recovery of costs incurred to provide services to new residential and non-residential developments. These new services include the construction of fire facilities, recreational facilities, park development and facilities, roads, other facilities. The by-laws identify the charges to be paid by each type of development, when the charges have to be paid and how the municipality will account for the funds collected.

     


    How is this Act of interest to public libraries?

    Municipalities must review and adjust their Development Charges By-law at least every five years. (DCA 1997, c. 27, s. 9 (1)). The review cycle means that most municipalities will review their by-law in 2010. Public libraries should be cognizant of this cycle in their own municipality.

    At the time that the by-law is being reviewed, there exists an important opportunity for library boards and CEOs to lobby to be included in the study.

    Public libraries may or may not have been included as one of the services reviewed in the earlier by-laws, and many but not all public libraries are included in their municipality’s Development Charges by-law. This is a municipal decision. However, with the next review, public libraries have an opportunity to be included. Libraries can lobby for inclusion in the study in a first instance, and once included, need to work to justify the amounts they require.

    While this legislation favours communities in high growth areas, even though rural municipalities may have little growth, and therefore little development charges money, it is important to be included in the by-law to be ready for any growth in the community.

     

    Who manages these development charges?

    The Development Charges By-law is administered by the municipality which shall establish a separate reserve fund for each service to which the development charge relates.’ (DCA 1997, c. 27, s. 33). When libraries are included in their municipal development charges by-law a separate fund will be created by the municipality.

    How may libraries share in these development charges?

    Development charges are intended to address the provision of services that are currently provided in the municipality and to meet the needs that result from population growth.

    The regulations also specify that the level of service is assessed as the currently averaged level of service in the municipality. For example a municipality cannot include the cost of a new municipal swimming pool if it does not currently provide such a facility. Similarly if the municipality with little expected growth already provides one hockey rink for five thousand people, it cannot charge for a facility that would provide for ten rinks. Some municipalities include the capital costs associated with the provision of library services in their Development Charges By-law. These capital costs may be related to the construction of libraries and the purchase of materials. According to section 5(3) this can include: 1. Costs to acquire land or an interest in land, including a leasehold interest. 2. Costs to improve land. 3. Costs to acquire, lease, construct or improve buildings and structures. 4. the purchase of additional furniture and equipment, other than computer equipment, and 5. the purchase of materials acquired for circulation, reference or information purposes by a library board (as defined in the Public Libraries Act. (DCA, 1997, c. 27, s 5(3)).

    It is important to note that the amount of money involved in development charges in any given municipality is dependent on the level of growth of that municipality. The library’ share therefore is also dependent on this growth. Typically in areas of high growth the levies may be substantial while in other areas there may not be much money to be had.

    What type of information can a library provide in the next development charges review?

    Before adopting a new or revised development charge by-law, the council must complete a Development Charges Background Study.
    (DAC 1997, c. 27, s. 10 (1).

    The key is to be prepared ahead of time to supply the study with data that supports the long term plans of the library. The anticipated development and /or growth of services are an important starting point to the process. Public libraries should estimate the increased need for service and subsequent funding only as it is applicable to growth related demand.

    Public libraries may want to request funds for costs related to facilities and collections.

    a) What about facilities

    With respect to facilities, the Regulations to the Development Charges Act specify that infrastructure for which development charges will be levied must be for facilities that the council of a municipality has committed to provide in order to meet the identified need for service. This can include identification in an approved official plan, capital forecast or similar expression of the intention of the council. (O. Reg. 82/98, s. 3)

    Within the library, your library’s building requirements are determined by the library’s strategic plan. You have to analyse your current needs, anticipate and understand future trends that may impact your library, know your community and have detailed knowledge of your municipality’s plans. Your building requirements coupled with the data gathering and analysis outlined in your facilities study will provide you with the necessary information to make the case for your building project.

    The SOLS publication, Library Development Guide #5, Making the case for your building will help you make the case and can be an invaluable asset in collecting this data.

    Your facilities study plays an important role by always tying the building project back to the community and its needs for library service.

     

    b)  What about collections?

    If the library has a written Collection Development Plan which examines the local community, and includes long-term strategies and annual plans for the library collection, then this information can be used to justify the need for development charges funding.  

    SOLS Library Development Guide #6 A Guide to Developing a Collection Plan can be an invaluable asset in this data collecting exercise.

    Reminder for the Library Board and Council:

    Development charges cannot be used to offset operational and life-cycle replacement costs. For example, collection development costs for materials are eligible but the funds are not intended to offset the libraries’ operating budget for materials.

     

    A number of libraries who responded to the olslib-l list serv discussion on this topic in 2008 and in 2009, have successfully been included in their municipal development charges by-law studies.  These are links to documents posted on their municipal websites.

     
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