AMCTO is lending its support to the Municipal Finance Officers’ Association of Ontario's (MFOA) recommendations to the Ministry of Municipal Affairs and Housing regarding the risk of reduced development charge revenues for local governments. 

As the association has historically, AMCTO supports the positions outlined by MFOA on development charges (DCs). Notably, AMCTO is concerned about reduced development charge revenues by expanding mandatory exemptions or other means. As stated by MFOA, development charges do not drive house prices and therefore reducing DCs will not reduce house prices. Reducing development charges will reduce municipal revenues and negatively impact a municipality’s ability to finance growth-related capital works and negatively affect its long-term sustainability. 

AMCTO is providing a letter of support to the Ministry for the following positions on DCs:

• Growth should pay for growth;
• There should be no ineligible services under the Development Charges Act;
• There should be no service "discounts"; and
• Service levels should be forward looking and not based on historic service averages

AMCTO will continue to monitor this file and provide updates when they become available.