Development charges are a one-time, upfront fee charged by municipalities and paid for by developers on each new unit they build to cover the capital costs the municipality must spend to expand or extend infrastructure (roads, water, sewers, etc.) to serve the new development. This approach is known as “growth pays for growth” or (new houses) pays for (new water line).
The Development Charges Act requires municipalities to complete a Development Charges Background Study to calculate the maximum amounts they can charge and on which types of developments before they can update the Development Charges Bylaw and start collecting fees from developers.
The City of Belleville has instituted development charges to pay for development-related infrastructure. The Development Charges Act (1997) provides the authority to impose these charges and provides strict limitations on their calculation. Development charges are generally based on the benefits principle. Increases in need for services necessitated by development are estimated and all or a portion of the net capital cost are recovered through the levy paid by the benefiting development. These are collected by the City from developers and are held in designated DC reserve funds and used to fund a portion of growth-related infrastructure as prescribed by the City’s DC Bylaw. Projections relating to DC revenues are based on DC rates and the projected growth in residential and non-residential development.
2022 Asset Management Plan
There are two charges:
- City-wide development charge that applies to all lands within the City. (Bylaw 2021-201)
- Area-specific development charge that applies to specific lands in the Stanley Park Area. (By-law 2020-16)
Belleville’s charges have been indexed to inflation as measured by the Non-Residential Building Construction Price Index (Table 18-10-0135-01) since January 1, 2023.
Development Charge rates
Development Charge exemptions
Provincially mandated exemptions
Section 2 to 4 of the Development Charges Act exempts the following:
- Municipally-owned lands used for purpose of a municipality, local board, or board of education (eg. construction of schools by public or Catholic boards) – S. 3
- Non-profit housing development – S. 4.2 (2)
Creation of residential units
- Enlargement of an existing residential dwelling unit – S. 2 (3)
- Adding 1 unit or 1% of existing residential units to existing apartment building – S. 2 (3.1)
- In existing houses or new residential buildings – S. 2 (3.2 and 3.3):
- Second residential unit in a detached house, semi-detached house or rowhouse
- Third residential unit in a detached house, semi-detached house or rowhouse
- One residential unit in a building or structure ancillary to an existing detached house, semi-detached house or rowhouse
Industrial expansion
- Expansion of existing industrial building’s gross floor area (S. 4) by:
- 50% or less is fully exempt
- 50% or more is charged only on the portion exceeding the 50% threshold
Creation of affordable and attainable units
- New residential unit intended to be an affordable for 25 years or more – S. 4.1 (8)
- New residential unit intended to be an attainable when first sold – S. 4.1 (10)
Belleville optional exemptions
Municipalities may set their own exemptions in the bylaw to incentivize/subsidize certain kinds of developments. Revenue shortfalls resulting from exemption policies cannot be recovered through fee increases for other types of development. The difference is made up by increasing property taxes and water/wastewater rates.
Belleville has opted to waive the charges for:
- Non-residential (commercial) development in Belleville Downtown Improvement Area (BDIA)
- Non-residential farm building (barn)
- Hospitals
- Places of worship classified as exempt from taxation under Section 3 of the Assessment Act
- Accessory use or structure not exceeding ten square meters of nonresidential floor area
- Non-residential accessory use or structure less than 10 m² of floor area
- Private schools (eg. Albert College) as defined in the Education Act (education development charges exempted in O. Reg. 20/98 under the Education Act)
- College of applied arts and technology (ie. Loyalist College) (as established pursuant to the Ministry of Training, Colleges and Universities Act) developments of land, buildings or structures and used for teaching-related purposes on lands owned by and used for the purposes of the College but not including student residences (education development charges exempted in O. Reg. 20/98 under the Education Act)
Past
- Industrial developments (January 25, 2016 to July 14, 2025)
Reductions
Belleville has opted to reduce the charges by:
- 50% for residential development in the Central Business District
- 50% for 6+ unit apartment buildings outside the Central Business District that agree to charge “affordable rents” (at or below market rate for County of Hastings) for a defined period of time
Deferrals
Belleville provides deferrals (payment plans) for:
- Rental housing (that is for-profit), and institutional development – Payable in 6 instalments beginning from the date of issuance of an occupancy permit or occupancy of the building, whichever is earlier.
- Non-profit housing development. Payable in 21 instalments beginning from the date of issuance of an occupancy permit or occupancy of the building, whichever is earlier.
- Developers that belong to the Quinte Home Builders Association – Contact the City at 613-968-6481 for details.
Charges are indexed to the Non-Residential Building Construction Price Index
The development charges imposed pursuant to this by-law shall be adjusted without amendment to this by-law commencing on the 1st day of January 2023 and annually thereafter on the 1st day of January, in accordance with the most recent twelve month change in the Statistics Canada Quarterly, Non-Residential Building Construction Price Index (Table 18-10-0135-01).
