Council receives parkland and development charges financial reports

By Sharon Harrison
Annual reports on development charges, and park lands for 2025 were received by council from the Finance and Information Technology department, at Thursday’s committee of the whole meeting.

2025 Annual Parkland Report
The 2025 annual parkland report details the cash-in-lieu in the parkland reserve fund.

A new provincial requirement under the Planning Act requires municipalities to spend or allocate 60 per cent of parkland reserve funds annually. The municipality can require land for parkland at the time of severance, sub-division or site plan introducing new residential uses.

“Where the land is not available or suitable, the option of cash-in-lieu of land is also an option. The municipality began collecting cash in-lieu of parkland in 1999,” noted Ann Wood, Deputy Treasurer, in her report.

In November 2022, Bill 23 (More Homes Built Faster Act) came into effect amending the Planning Act, and starting in 2023 it stipulated that municipalities shall spend or allocate at least 60 per cent of the monies that are in the special account at the beginning of the year.

The 2025 cash-in-lieu of parkland reserve fund annual summary includes the 2025 opening balance, amounts collected, interest income, transfers out, and the closing balance as of Dec. 31, 2025. It also details the current year’s budget commitments.

Funds collected are deposited into an interest-bearing obligatory reserve fund, and interest earned in 2025 totalled $30,737.86.

“This is not a traditional reserve, it is an obligatory reserve, so it sits on our financial statements as a liability, just because it would be owed back, so it’s a little bit different in terms of a reserve strategy,” explained Arryn McNichol, Director of Finance and IT.

“Interest is allocated to each ward on a proportional (pro rata) basis based on its opening balance as of Jan. 1, 2025. Wards with negative or zero opening balances (e.g., Bloomfield and Wellington) did not receive interest allocations. This method ensures equity while maintaining financial integrity.”

Funds collected in 2025:
Ameliasburgh: $13,551.63
Hillier and Consecon: $4,517.21
Picton: $32,083.00
Sophiasburgh: -$3,000.00
Total: $47,151.84

Funds disbursed in 2025:
Ameliasburgh: $3,826.18
Bloomfield $64,237.95
North Marysburgh $9,718.08
Athol $14,000.00
Total: $91,782.21

The balance of the funds in the parkland reserve fund (as of Dec. 31, 2025) is $936,903.09.

“The 2026 budget has $178,500 in projects to be funded by the cash-in-lieu of parkland fund. The requirement is that a minimum of 60 per cent ($570,477.36) of the monies in the account at Jan. 1 of the preceding year is allocated or spent annually,” stated Wood.

Those parkland projects anticipated for 2026 include outdoor pickleball courts (location not stated) in the amount of $133,500, and Big Island site improvements for $45,000, for a total of $178,500.

The report also outlines the approved capital projects for 2025 and 2026 that are funded through parkland reserves.

The opening balance of the fund on Jan. 1, 2025 was $950,795.60. The combined total of new 2026 budget commitments ($178,500) and carry forward amounts from 2025 ($475,455.74) results in a total allocation of $653,955.74, stated Wood. This represents 68.78 per cent of the opening balance, exceeding the 60 per cent minimum required by legislation.

“Cash-in-lieu of parkland is collected, it is tracked by area (ward) from which it is collected,” she stated. “Projects are identified to disburse the funds from the same area they were collected. Funds may be used to create new parks and outdoor spaces or purchase new equipment for residents to enjoy; funds cannot be utilized to replace existing assets.”

There was little discussion around the horseshoe, but councillor David Harrison asked if the collections, which are primarily based on severances, land transfers, etc. were going up or going down. “How is this panning out financially over the last four to five years?” asked Harrison.

“I only have two years of data, but in 2024, we collected $71,381; in 2023, we collected $80,200, so it looks the parkland reserves has been decreasing,” confirmed McNichol. “The disbursements in 2024 were $43,000, and the disbursements in 2023 was $41,000, so the disbursements have increased and the collections have decreased.”

2025 Development Charges Report
Council received, for information, the annual treasurer’s report on 2025 development charges which include the ending balances in the County-wide development charge fund and for the Wellington-area specific development charge fund for 2025.

It was noted the Development Charges Act, 1997 requires the treasurer to provide council with an annual financial statement relating to development charge bylaws and reserve funds, and to make it available to the public.

Arryn McNichol, Director of Finance and IT said just like the parkland fund, the development charges fund is also an obligatory reserve, so it sits on the financial statements as a liability.

The County-wide development charge reserve fund closing balance as at Dec. 31, 2025 was $9,542,596, and the closing balance in the Wellington-area specific development charge was $13,867,697.

“The County-wide development charges (DC) raise funds for growth related projects in ambulance services, fire services, library services, long-term care services, parks and recreation services, waste diversion services, and services related to a highway,” notes Ann Wood, Deputy Treasurer, in her report.

“At the time the new background study was adopted, Bill 23 (More Homes Built Faster Act, 2022) had significant impacts on the Development Charges Act,” she explained. “One of the most impactful changes was the mandatory phase-in of DCs over a five-year period. This resulted in the municipality having to subsidize the difference between the reduced rate and the full rate or 20 per cent of eligible DCs. In 2024, the total phase-in costs financed by the municipality were $224,611, and in 2025 they were $50,097.”

County-wide development charges
Opening reserve fund balance Jan. 1, 2025: $8,026,958
Development charges collected (including interest): $2,035,393
Development charges disbursed ($519,755)
Closing reserve fund balance Dec. 31, 2025: $9,542,596

Wellington urban serviced area development charges
During 2025, there was a total of $278,210 deposited with no funds withdrawn or utilized in 2025.

Opening reserve fund balance Jan. 1, 2025: $13,148,503
Development charges collected (including interest): $719,193
Development charges disbursed closing reserve fund balance Dec. 31, 2025: $13,867,697.

Councillor Janice Maynard asked if there is any attempt to track where the DCs are collected from and where they are spent. “Money is collected from different areas of the County, and those areas should benefit accordingly, is the intent,” said Maynard.

Councillor Brad Nieman asked for an explanation on what the DCs are used for when they come in.

“The are used for growth-related capital,” explained McNicol, who said it is broken down into seven different service areas. “Staff work with the consultant to determine which growth-related capital assets that they want the DCs to be based on.”

McNichol further clarified that it has to be in the background study, and it has to be within the particular service area.

“We are kind of doing that now, we are utilizing that where it needs to be, it’s still being equally distributed,” Nieman added.

The reports are to be ratified at the June 9 council meeting. The staff reports and associated financial statements, discussed at the May 28 committee of the whole meeting, can be found on the corresponding agenda on the County’s website, along the meeting recording.