Community benefits charge

We’re considering implementing a community benefits charge (CBC) in Guelph. Municipalities can help pay for local infrastructure, community services and parkland that our growing communities need through:

What is a community benefits charge?

Under the Planning Act, any municipality in Ontario can create and collect a community benefits charge (CBC) from new buildings or structures that are a minimum of five storeys high and have 10 or more residential units. The rate can’t exceed 4 per cent of the property’s land value on the day before a building permit is issued. The CBC is paid as a one-time fee by the property developer or builder.

The CBC will cover any public service associated with new growth, if those costs are not already covered by development charges or parkland dedication. Specifically, it helps pay for City capital investment in facilities and services like parking, arts and culture, parkland and more.

The following developments are exempt from CBCs:

  • Long-term care homes
  • Retirement homes
  • Universities, colleges and Indigenous Institutes
  • Memorial homes, clubhouses or athletic grounds of the Royal Canadian Legion
  • Hospices
  • Non-profit housing

Why does Guelph need a community benefits charge?

The CBC will help Guelph tackle the increasing costs of critical infrastructure and services associated with higher population density as our community grows and develops over the coming years, especially those not traditionally covered by development charges and parkland dedication.

The process for creating a community benefits charge

We’re working with Watson and Associates Economists Ltd., to explore the potential for a CBC in Guelph. This includes assessing:

  • Population growth forecasts and proposed development over the next 10 years
  • Estimated cost for future City services, facilities and infrastructure
  • Guelph’s land values
  • How much money can we expect to collect based on eligible land values
  • The best percentage for the CBC rate, to a maximum of 4 per cent.

To implement a CBC, City Council must approve a strategy and pass a bylaw specifying:

  • Services, including potential projects, that will be considered for funding by the community benefits charge; and
  • How Guelph complies with prescribed CBC rate requirements under Ontario Regulation e509/20.

We can implement a community benefits charge at any time. We are working towards September 18, 2022, to implement the community benefits charge since the City’s ability to fund parking through development charges will end as of this date and we want to provide partial continuous parking funding.

Read the Community Benefits Charge Strategy report to learn more.

Have your say

Attend the Special Council meeting on April 13 to learn more. You can also register to delegate or submit written comments.

Resources

Community Benefits Charge Strategy

For more information

Lily Yan, Project Manager, Financial Strategy and Long-Term Planning
Finance
City of Guelph
519-822-1260 extension 3881
[email protected]