Greater Napanee raises development charges as infrastructure costs top $100M

The Council of the Town of Greater Napanee has approved higher development charges after updating the Town's growth-related capital program, which now identifies more than $100 million in water, wastewater, and planning projects needed to support future development.

At its meeting on Tuesday, Jul. 14, 2026, Council unanimously approved an updated Development Charges Background Study and amendments to the Town's development charges bylaw following the completion of the statutory public consultation process.

The changes increase the calculated development charge for a new urban single detached home from $20,672 to about $23,280 in 2022-dollar values, while the urban non-residential rate increases from $9.98 to $11.29 per square foot. The charges are indexed annually for inflation, meaning the actual fees paid today are higher than the figures presented in the study.

The updated study attributes the increase to higher construction costs, additional infrastructure needed to support growth, and recent provincial legislative changes affecting the Town's development charges framework. While the Town's long-term growth forecast remains unchanged from 2022, the cost of servicing that anticipated growth has increased significantly.

Among the largest investments identified is the planned Water Pollution Control Plant Upgrade and Expansion, now estimated to cost $63.92 million, nearly $14 million more than the $50-million estimate included in the Town's 2022 development charges study.

The updated capital program also includes a $7.27-million sludge dewatering facility, approximately $5.6 million in financing costs associated with the wastewater treatment plant project, watermain upgrades, improvements to the Town's water fill station, additional booster station infrastructure, a zoning bylaw update, and a recreation feasibility study.

While the overall cost of the wastewater treatment plant has increased substantially, the study also assumes a larger share of the project will be funded through grants and other contributions, reducing the amount ultimately recovered through development charges.

According to the study, Greater Napanee is planning for approximately 779 new residential units, 1,506 additional residents, and more than 568,000 square feet of new commercial and industrial development over the next decade. Staff say those projections require significant investment in municipal infrastructure to support that growth.

Development charges are one-time fees collected when new homes or commercial buildings are constructed. Under Ontario's Development Charges Act, municipalities use the revenue to help pay for infrastructure required because of growth --- including water and wastewater systems, roads, and planning studies --- so that growth pays for a larger share of the infrastructure it requires rather than relying entirely on existing taxpayers and utility ratepayers.

During Council's discussion, Councillor Mike Schenk asked whether the increase could make new housing more expensive to build or discourage future residential development.

General Manager of Growth and Infrastructure Michael Nobes acknowledged that development charges are one factor builders consider but said broader economic conditions have a much greater influence on whether projects proceed.

Nobes told Council he did not believe an increase of roughly $3,000 on the cost of a typical new home would, by itself, discourage development.

He also clarified that the figures contained in the report are expressed in 2022 dollars because they are based on the Town's original development charges study. The current rates have already been indexed for inflation, meaning the same percentage increase will apply to today's indexed charges.

The decision comes less than a week after provincial Municipalities and Housing Minister Rob Flack visited Kingston to present the City with $3.2 million through Ontario's Building Faster Fund for exceeding its housing target. Flack said the province was "rewarding municipalities" that help accelerate housing construction, with funding intended to support infrastructure, such as water and wastewater systems, needed to accommodate growth. Mayor Bryan Paterson said Kingston planned to invest the money in housing-supporting infrastructure to keep development moving.

Among the province's initiatives is a new Development Charge Reduction Program intended to help municipalities lower residential development charges while still funding essential infrastructure. Greater Napanee has applied to participate in that program. During Tuesday's discussion, Nobes told Council that if the Town is successful, provincial funding could help offset some of the infrastructure costs currently recovered through development charges.

The discussion reflects a broader debate across Ontario over how to balance housing affordability with the cost of the infrastructure needed to support growth. Asked by Kingstonist about that issue during last week's announcement in Kingston, Flack said the province is trying to "right-size what those development charges are trying to accomplish by supporting municipalities with needed infrastructure dollars." Flack argued high development charges can add significantly to the cost of new homes, while saying provincial infrastructure funding can help municipalities reduce those fees without shifting the burden onto property taxpayers.

The updated bylaw also incorporates recent amendments to the Development Charges Act introduced through Bills 17, 60 and 185, including changes related to payment timing, exemptions, development charge freeze provisions, and administrative requirements.

Despite approving higher development charges and updating more than $100 million in growth-related infrastructure projects, the public consultation process generated no public feedback.

According to the staff report, no written or verbal comments were received after the Development Charges Update Study was released on May 14; no submissions were made following notice of the statutory public meeting; no members of the public spoke when Council held that meeting on June 23; and no comments were received afterward. Staff concluded there were no issues requiring changes before Council approved the updated study and bylaw.

Meetings of the Council of the Town of Greater Napanee can be viewed virtually (or watched afterward) on the Napanee Town Council YouTube channel or attended in person in Council Chambers at Napanee Town Hall, 124 John Street. Further information about Council meetings, including agendas and reports, is available on the Town’s CivicWeb portal.