Essa Township is reviewing its development charges and builders in Angus could see a 34 per cent increase in the municipal levy in constructing new homes.

"I think it's a sign of the times," said Mayor David Guergis.

Development charges are fees levied against builders to cover the infrastructure costs associated with growth, such as new roads, water or sewer systems. The current development charge bylaw does not expire until 2009, but the skyrocketing costs of some building supplies has driven up the township's costs, said Craig Binning from Hemson Consulting.

In a report at a public meeting last Wednesday night, Binning said the township's cost for building new infrastructure is exceeding the expectations set out in the previous development charge bylaw. He said the township should be updating the fees now, to cover the extra costs associated with rising input costs.

In the report, Hemson suggested the residential development charge in Angus increase from $22,678 per single detached unit to $30,319. In Thornton, the increase would be from $15,732 to $17,760. The figures represent an increase of 33.7 per cent in Angus, and 12.9 per cent in Thornton.

For non-residential development, the increase in Angus would be 71 per cent, from $76.83 per square metre to $131.42. In Thornton the increase would be 22.5 per cent, from $58.56 to $71.73.

The difference in the two communities is largely because of additional sewer charges in Angus.

Coun. Rick Newlove said it’s unfair for current residents to shoulder the costs of future growth in the township.

Townships across the county have also been updating their municipal development charge bylaws, including New Tecumseth, where Hemson proposed a similar increase from $21,711 to $32,544 per single-family dwelling unit.

Michael Melling, a lawyer representing a group of Angus developers, asked council to wait until autumn before deciding on any increases in charges. He said developers had not had time to review the report and the figures entirely.

One concern among developers is whether the township would apply the current or new charges to homes that have already been sold, but not yet built.

Guergis said that part of the reason the increase is needed is because of the lack of balance between the number of new homes and industry in the township

"We don't seem to be attracting industrial development, and it is putting a bit of a burden on residential (developers and taxpayers)."

Essa had been courting a British Columbia company looking to build a small factory in the township, but the company decided to build in the United States in an area that didn't have development charges, Guergis said.

A copy of the full report on the Development Charges is available on the township's website, www.essatownship.on.ca, or at the township office.

E-mail reporter Kurtis Elsner at kelsner@simcoe.com