Development Charges & Impost Fees
In September 2014 City Council passed a new Development Charge Bylaw 2014-135 together with Bylaw 2014-136 which amended the existing Impost Fee Bylaw 2009-138. Together, the Development Charge and Impost Fee provide a viable capital funding source for infrastructure that is required to support future development in the municipality. The new Development Charge and Impost Fee came into effect in September 2014.
For further information respecting the Background Study process, the new Development Charge Bylaw, the amendments to the existing Impost Fee Bylaw, and the appeals process, refer to Council reports 14-204, 14-237 and 14-258. Additional information may also be obtained from one of the contact persons listed under the Further Information tab below.
This information summarizes the City's policies with respect to development related charges. The City collects these charges when the building permit is issued. Development related charges are comprised of the City-wide development charge for municipal services (e.g. roads, parks, libraries, transit) and the impost fee for water and waste water services within the urban service area.
The information provided is intended only as a guide. Applicants should review Bylaws 2014-135 and 2009-138, as amended, and consult with the City's Building Department to determine the charges and fees that may apply to specific development proposals.
Purpose for development related charges
The general purpose for which development related charges (comprised of both the Development Charge and Impost Fee) are imposed by the City is to assist in providing the infrastructure required by future development in the Municipality by establishing a viable capital funding source to meet the City's financial requirements.
The City collects development related charges pursuant to two Bylaws:
- Bylaw No. 2014-135 ("City of Kingston Development Charge Bylaw 2014"), authorized by Subsection 2(1) of the Development Charges Act, 1997, which imposes uniform City-wide charges for the following municipal services: Roads & Related; Protection Services (fire and police); Transit; Parks & Recreation; Library Services; Administration – Studies; and, Affordable Housing; and
- Bylaw No. 2009-138, as amended by Bylaw No. 2014-136 ("City of Kingston Impost Fee By-law"), which imposes water and waste water fees under Section 391 of the Municipal Act, 2001 within the Urban Service Area.
Development related charges are collected in one payment at the time of building permit issuance. Impost Fees are also payable upon connection to the water and/or waste water system(s) if a building permit is not applicable.
Rules for development related charges
Rules with respect to the applicability and collection of development related charges are summarized below. Applicants should consult Bylaw No. 2014-135 and Bylaw No. 2009-138, as amended, for further detail.
Development charges apply to all lands in the City of Kingston. Impost fees for water and waste water are applicable within the urban service area only.
Development related charges are payable under the respective Bylaw(s) prior to issuance of a building permit. Impost Fees are payable upon connection to the water or waste water system if a building permit is not applicable.
a) The following uses are wholly exempt from the City-wide Development Charges only, under Bylaw No. 2014-135 (water and waste water fees still apply, if applicable):
- lands owned by and used for the purposes of a municipality or a local board thereof, or a board of education;
- a place of worship classified as exempt from taxation under Section 3 of the Assessment Act;
- an agricultural use;
- a seasonal structure;
- a temporary venue, and;
- expansion of an existing industrial building where the gross floor area is enlarged by 50% or less.
b) The following uses may be exempt from all charges under Bylaw No. 2014-135 and Bylaw No. 2009-138, as amended:
- industrial and research facility land uses (in accordance with terms of the By-laws);
- lands designated as part of a Community Improvement Area (subject to the provisions of the City's Brownfields Program);
- an interior alteration to an existing building or structure which does not change or intensify the use of land;
- the enlargement of an existing residential dwelling unit, or the creation of one or
two additional units where specified conditions are met;
- the second unit within a new dwelling, where the new dwelling is purpose-built to contain a second residential unit, provided that specified conditions are met;
- a canopy;
- a seasonal air supported structure, save and except any portion that is permanent;
- a temporary building or structure where specified conditions are met;
- a speculative building where specified conditions are met.
- Every building permit applicant that seeks an exemption to Bylaw No. 2014-135 or Bylaw No. 2009-138, as amended, shall make an application by fully completing the Application for Development Charge Exemption found on the City's website.
A reduction in development related charges under the Bylaw(s) is allowed in the case of a demolition or redevelopment of a residential, non-residential, or mixed-use building or structure, provided that the building or structure was occupied within the prior five years or a demolition permit has been issued within five years prior to the issuance of a building permit for redevelopment of the lands.
The schedule of development related charges will be adjusted commencing January 1, 2016 and annually on January 1 thereafter in accordance with the most recent twelve month change in the Statistics Canada Quarterly "Construction Price Statistics" (Ottawa Region). For the indexing on January 1, 2016 only, the charges shall be pro-rated to cover the period from September 29th, 2014 to December 31, 2015.
Water works and waste water rates are being phased in over a three year period. The rates shown in the following table will be in effect from September 29, 2014 to December 31, 2015. Bylaw No. 2009-138, as amended, should be consulted for the rates that will be in effect as of January 1, 2016 and January 1, 2017.
City-wide development charge / impost fee
The City-wide Development Charge is imposed pursuant to the City of Kingston Development Charge Bylaw 2014 (Bylaw No. 2014-135) for the following municipal services: Roads & Related; Protection Services (fire and police); Transit; Parks & Recreation; Library Services; Administration – Studies; and, Affordable Housing. The amount of the charge for each municipal service is shown in Schedule B to Bylaw No. 2014-135. The amount of the Development Charge by municipal service that is effective as of September 29, 2014 is also shown in the Development Charges Pamphlet.
The City's Impost Fee is imposed pursuant to the "City of Kingston Impost Fee Bylaw" (Bylaw No. 2009-138, as amended) for water and waste water services. The amount of the Impost Fee for water and waste water is shown in Schedule A to Bylaw No. 2009-138, as amended. The Impost Fee is being phased-in over a three year period. The amount of the Impost Fee that is effective as of September 29, 2014 is also shown in the Development Charges Pamphlet. Bylaw No. 2009-138, as amended, should be consulted for the fees that will be in effect as of January 1, 2016 and January 1, 2017.
Note: Both the Development Charge and the Impost Fee are subject to indexing in accordance with the respective Bylaw provisions on January 1st annually, commencing on January 1st, 2016. For the indexing on January 1, 2016 only, the Development Charge and Impost Fee shall be pro-rated to cover the period from September 29th, 2014 to December 31st, 2015
Purpose of the City Treasurer's statement
A financial statement is presented annually by the City Treasurer reflecting the activity of Development Charge and Impost Fee Reserve Funds, including expenditures, development related charge collections, interest earnings, funding transfers, borrowing, and landowner credit transactions. The City Treasurer's annual statement is available through the office of the City Clerk.
For more information on the Development Charge and Impost Fees Bylaws, please contact:
Financial Services Department
216 Ontario Street, Kingston, ON KYL 2Z3
Phone: 613-546-4291, ext. 2279
For information on fees or charges that apply to specific development proposals, contact:
Deputy Chief Building Official / Supervisor Building Services
1211 John Counter Blvd., PO Box 790, Kingston, ON K7L 4X7
Phone: 613-546-4291 ext. 3252
For additional information regarding the annual statement, please contact:
Manager, Financial Planning
216 Ontario Street, Kingston, ON K7L 2Z3
Phone: 613-546-4291 ext. 2209