Rural mayors push back on LRT fee talk

Region faces stiff opposition as it considers development charges in townships to help pay for transit

Local townships want no part in helping to pay for light rail transit.

The rural mayors are speaking out against discussions about implementing development charges for transit — buses and light rail — in the townships.

“We don’t have transit out here and we don’t feel that we should be paying for a service that we don’t receive. That’s the bottom line,” said Wellesley Mayor Joe Nowak.

Development charges are fees developers pay for infrastructure such as roads and sewers. They’re paid once on new development.

Right now, development charges for transit are only charged on projects in the cities.

The region is reviewing its development charge bylaw after changes to provincial rules were made at the end of 2015. Under the new rules, the region can now calculate the charges for future transit and use development charges for waste management — excluding landfills and incineration.

Because the region is completing a background study to incorporate these changes into its development charge bylaw, the issue of whether townships should be included in transit costs is back at the table.

“I live in the townships, but I’m always astonished when I hear people say, ‘Oh well, (the townships are) paying to support the cities,’” Regional Chair Ken Seiling said. “Actually, the reverse is true.

“It’s the urban centres that are supporting services in the townships and have been since the region was created.”

Of the townships, Woolwich and Wilmot receive limited transit. Woolwich taxpayers pay a fee for an Elmira route, and a pilot project route to test transit in Wilmot is running as well.

Wilmot Mayor Les Armstrong said his council will decide whether to follow Wellesley and pass a motion to express its opposition to the development charge idea in September.

“I don’t like the idea,” he said. “We don’t have the service, so why should we pay for it.”

North Dumfries Mayor Sue Foxton agreed.

“When we get full transit service we’ll be more than happy to pay our fair share,” she said.

He said the townships are being roped in to cover off exemptions to development charges the region and cities of Cambridge and Kitchener have for downtowns. However, the region’s share of those exemptions is also back up for discussion. Any exemptions are covered by taxpayers.

Wellesley council passed a motion this week to express its opposition to the charges.

Nowak said the concern is that townships, some already struggling to attract development, will become less competitive if developers need to pay the fees there.

“Our point is that if in the future we do get some transit of some sort, then by all means we’re more than happy to do our share,” he said.

He added that townships don’t benefit from assessment growth brought by new development along the light rail route.

Seiling disagreed. He said any new property tax assessment from development along the route goes into the regional budget, which benefits all taxpayers.

At the same time, the main philosophy behind the light rail system and urban intensification was to limit urban sprawl.

“The whole thing was started to stop urban sprawl and preserve rural lands,” Seiling said.

Woolwich Mayor Sandy Shantz was not available by phone, but said in an email the townships were promised they wouldn’t have to pay for light rail transit. Her second concern is that reviews of Elmira and Breslau bus routes aren’t planned for five years so transit remains limited in the township.

Seiling said that promise was related to property taxes, not development charges.