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At Perth council’s recent committee meeting, Town planner Joanna Bowes delivered a report on Ontario Bill 98 and how it will effect municipal finances.
The Bill is drawing concern from municipalities as the Province moves ahead with major changes to planning and development rules. Introduced at Queen’s Park on March 30th, 2026, the bill has passed first and second reading and is now at the committee stage.
A key issue is a proposed federal-provincial infrastructure funding offer worth $8.8 billion that would require municipalities to cut development charges by at least 50 per cent — or eliminate them entirely — to qualify for funding. Bowes thinks the hand-writing is on the wall for development charges.
Municipal staff warn the one-time grants may not replace the long-term revenue generated through development charges, which help fund roads, water systems, wastewater treatment, and other infrastructure tied to growth.
The costs of building those critical systems have shot up 70% in the last 10 years according to the Rural Ontario Municipal Association. Bowes believes the financial picture will be bad for smaller communites.
Bill 98 would also require standardized Official Plans across Ontario and could reduce municipal authority over planning matters.
In the end, property tax payers could take the hit without much say in how development occurs in their neighbourhoods.
Story by Brian Turner
