Infrastructure Renewal Fee

The Municipality is proposing an Infrastructure Renewal Fee to generate new revenue for the long-term replacement of water and wastewater infrastructure. This fee will apply to property owners who have access to full or partial services but are not connected, ensuring all lots designed to be serviced contribute equally to system upkeep.

The Infrastructure Renewal Fee will be charged to:

• Vacant lots fronting municipal water and/or wastewater services that are eligible for a building permit.
• Properties with buildings that front the system but are not connected.

Exemptions:

New developments approved under the Planning Act (subdivisions, condominiums, or site plan approvals) will be exempt for two years from the date of registration or approval. After this period, if services are not connected, the fee will apply to each property in the approved plan.

The Municipality of Greenstone has the authority to impose an Infrastructure Renewal Fee under the Ontario Municipal Act, 2001 (S.O. 2001, c. 25). This legislation permits municipalities to pass By-laws imposing fees or charges on individuals for:

• Services or activities provided by or on behalf of the Municipality.
• Costs incurred for services or activities performed by another municipality or local board.
• Use of municipal property, including property under municipal control.

This authority ensures the Municipality can equitably recover costs related to the maintenance and replacement of water and wastewater infrastructure.

The proposed Infrastructure Renewal Fee is calculated based on the annual costs required for infrastructure replacement. This includes:

• Capital costs - expenses for building new infrastructure or replacing existing assets.
• Contributions to asset replacement reserves - funds set aside annually for future system repairs and replacements.

For 2025, the budget includes $1,367,600 in capital projects funded through user rates.

Note: This fee does not cover water or wastewater usage charges, as vacant lots are not active users of the system. users.

The Infrastructure Renewal Fee will be set annually through the Municipality’s Fees and Charges By-Law. If approved by Council, the proposed 2025 fees are:

• Water: $342.46 per year
• Wastewater: $289.70 per year

For 2025, fees will only apply from the expected approval date (July 1, 2025) to the end of the year.

Lots already connected to water and/or wastewater services pay equivalent fees, within their current charges, to those proposed for unconnected lots with service access.

The proposed fee ensures that all lots designed to be serviced contribute equally to the maintenance and replacement of water and wastewater infrastructure, regardless of connection status.

Why do my property taxes not pay for the water and wastewater infrastructure?

Currently, $600,000 of water and wastewater costs are funded through property taxes. However, Council's Strategic Plan aims to make these systems independent of the tax levy. The Infrastructure Renewal Fee will help bridge this gap, reducing reliance on tax funding.

Why Separate Water and Wastewater Costs from Property Taxes?

• Property taxes fund general municipal services like roads, garbage pickup, parks, police, recreation, and fire services.
• Not all taxpayers have access to municipal water and wastewater services. Rural residents, for example, must maintain their own wells and septic systems.
• Ensuring water and wastewater costs are covered separately creates a fairer and more sustainable funding model.

How will the Infrastructure Renewal Fees be used by the Municipality?

All fees collected for water and wastewater infrastructure replacement will be:

• Used for in-year capital projects; or
• Placed in dedicated municipal reserves for future water and wastewater needs.

These reserve funds are reported to Council annually and are allocated through the capital budget plan to support projects focused on repair and replacement of existing infrastructure.