Editor’s Note: AmberGreen.ca exists not as a news source, but as a publication intended to educate and promote civic engagement. I included some of my analysis of municipal matters, but I do so with great care and attention to detail. Any level of government can be difficult to understand, especially with so much going on. I appreciate you coming on this journey with me as we decode municipal politics together.
The Municipal Minute
Development Charges (DCs) remain up for debate. As a significant source of revenue for municipalities, a new provincial program called the Development Charge Reduction Program (DCRP) offers municipalities the opportunity to apply for infrastructure funding if they reduce those charges. However, several unanswered questions initially gave members of Innisfil Town Council reason to pause.
Funding for municipal infrastructure is, of course, required to continue to develop, but based on the discussion at both meetings on June 10 and June 15, it appears that Council was being asked to make a significant decision before key details about funding allocations were known.
If the Town proceeds, how much funding will be provided to the municipality? No one knows (not yet, at least).
Though the guidelines note that municipalities offering larger development charge reductions may receive greater consideration for funding, municipalities that opt in to the program are expected to reduce DCs by at least 30%. The DCRP makes up to $8.8 billion in federal and provincial capital funding available through an application-based process.
However, funding is not guaranteed. Though municipalities are submitting applications, they are doing so without knowing how much the provincial government will provide to them. (Even where funding is available, municipalities must contribute at least 10% of eligible project costs.)
In fact, the Innisfil Town Council originally voted not to opt in to the program at the Special Planning Council meeting on June 10, 2026.
However, Innisfil’s Town Council decided to reconsider the decision when they met on Monday, June 15. By the end of the Special Council meeting, all but one member — Coun. Jennifer Richardson — voted to proceed with making an application for the Government of Ontario’s DCRP.
While concerns remain about reducing development charges and the lack of transparency regarding guaranteed funding, several members argued that submitting an application would preserve the Town’s options while more information was gathered.
Although Council ultimately voted to proceed with an application, many of the concerns raised on June 10 remained unresolved.
Councillors also discussed additional information regarding potential infrastructure projects, neighbouring municipalities, and the implications of not participating in the program.
During the June 15 Special Council meeting, staff identified the Lakeshore Wastewater Treatment Plant expansion and associated infrastructure works as projects that could be submitted under the program, with the potential to support approximately 15,000 housing units.
Council intends to revisit this matter on August 12, unless a special council meeting is scheduled beforehand. (The Town Council does not meet in July.)
On June 10, the Town of Innisfil’s CAO Oliver Jerschow noted that the wording in the application is “relatively strong.”
“It’s a little unusual the kinds of things that we’re being asked to commit to at the application stage,” he continued.
Jerschow also noted that he believed the Town could withdraw from the program this summer even after submitting an application because the analysis received by the Town states that the language is not legally binding, as “even the program guidelines we have available to us now say that it’s at the time of transfer payment agreement is signed that everything really kind of kicks in and gets real.”
Civic Decoder
Development Charges (DCs) are defined as fees collected by a municipality “to pay for increased capital costs required because of increased needs for services arising from development of the area…”
Development charges are paid by developers, but there is ongoing debate about how much of those costs are passed on to homebuyers as reflected in the purchase price of their home.
The DCRP asks municipalities to reduce those charges for residential development in exchange for the opportunity to apply for infrastructure funding.
DCs help to pay for growth-related infrastructure, such as roads, water, wastewater, and community facilities, but the DCRP explicitly says that housing-enabling infrastructure projects will be prioritized over community-building projects.
Community Connection
What does this mean for residents of Innisfil?
Residents may see the effects of this decision in future property taxes, infrastructure investments, housing construction, and growth-related planning decisions, as it could affect how infrastructure projects are funded.
Questions I’m Asking
- If funding is not guaranteed, how much risk is the Town taking if they participate in the program? Will taxpayers be expected to cover the gap?
- How much development would occur over the next three years if DCs remain unchanged? Would developers choose to build in neighbouring municipalities if Innisfil opts out?
- Even if the Town withdraws from the DCRP after receiving more information, will its relationship with the provincial government change in meaningful ways? (Some members of council raised concerns about how a decision not to participate could affect future provincial support for major projects, including the RVH South Campus.)
What questions are on your mind? What do you think about the DCRP (discussed above)? Get in touch with me on social media or via email at amber@ambergreen.ca.
What to Watch
As the deadline to submit an application is tomorrow morning, attention will now turn to what is said about this matter at the Town Council meeting in August (unless special council meetings are arranged beforehand).
Several important issues remain unresolved
- Will Council ultimately participate in this program?
- Will neighbouring municipalities participate?
- Will the province provide any additional information before the council meeting on August 12, as Transfer Payment Agreements (TPAs) must be executed by August 15, 2026 (as stated on page 15 of the program guidelines)?
The next regularly scheduled Council meeting in Innisfil, ON, is on Wednesday, June 24, at 7 p.m.
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