Infrastructure & Development

Our lagoon is running out of space - what can we do?

Municipalities can require servicing agreements from subdivision applicants. These agreements help collect funds for infrastructure capital costs needed to support subdivisions and future growth - including lagoon expansion, water lines, and pump houses.

What is a servicing agreement and what does it do?

A servicing agreement is a legal contract between the municipality and a developer. It obligates the developer to install necessary infrastructure for the subdivision (roads, water, sewers, etc.). In return, the municipality assumes long-term responsibility for maintenance. This arrangement helps fund infrastructure without raising taxes.

What can be included in a servicing agreement?

• On-site infrastructure: roads, water lines, sewers, sidewalks, lighting
• Off-site fees: costs for upgrading facilities outside the subdivision like water reservoirs, sewage lagoons, roads, parks, and recreation spaces
• Municipal costs: planning, engineering, legal, and administrative fees related to the subdivision

Note: Servicing agreements cannot cover ongoing maintenance or operation costs.

How are off-site fees calculated?

Off-site fees reflect the municipality’s actual capital costs for services required due to new development. For example, if a new sewage lagoon is needed, the total upgrade cost is divided proportionally among existing and future development users. Developers pay fees based on the number of lots.

Funds collected must be kept in a dedicated reserve or trust account and used only for the specified infrastructure projects.

What about development levy agreements? How are they different?

• Servicing agreements apply when land is being subdivided.
• Development levy agreements are used when there is no subdivision but development still impacts municipal infrastructure.
• Development levies require the municipality to have an approved development levy bylaw.

Both are tools to recover development-related infrastructure costs, but apply in different circumstances.