While the cost impact on new home builds remains relatively the same as changes to development charges come into effect, there is potential to demand growth pay a larger share in the near future, city council heard on Wednesday evening.

Those potential new fees, however, won’t cover the cost of growth currently being subsidized by city taxpayers.

“We’re getting a little bit closer,” commented treasurer Tara Baker during a public meeting, referring to closing the gap between actual costs and collected development charges. “We’re charging the full amount that is allowed.”

Development charges contribute to a wide range of city infrastructure costs related to policing, fire services, wastewater treatment, recreation and more. They’re charged on a per-unit basis for residential and by the square metre for new, non-residential construction within the city, just as in other municipalities.

A couple of major, provincially-legislated changes are slated to come into effect in September which, according to consultant Greg Scandlin of Watson & Associates, essentially cancel each other out. 

Municipalities will no longer be allowed to charge for parking services among their fees, but a mandatory 10 per cent deduction for “soft costs” such as library services, recreation and waste diversion will be eliminated.

Responding to a question from Mayor Cam Guthrie, Greg Clark, the city’s manager of financial strategy and long-term planning, explained removal of the mandatory deduction could result in an additional $1.7 million in development charges being applied to the cost of the new central library, with another $6 million going toward the South End Recreation Centre.

The library project was approved last year with a $62 million budget. Council approved the new recreation centre and its $80 million price tag at that same meeting.

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