Development Charges
Development charges are fees collected from new development to help pay for increased capital costs related to growth. These costs can include new or expanded infrastructure and services needed to support development in the City of St. Thomas.
The City collects development charges under the Development Charges Act, 1997 and the City's development charge by-laws.
Current development charge rates
Development charge rates are indexed annually.
View the current development charge rates: Development charges – effective April 1, 2026
Rates may vary depending on the type and location of development.
Development charges are subject to change. The applicable rate and any exemptions or reductions will be determined in accordance with the City's development charge by-laws and applicable legislation.
What development charges pay for
Development charges help fund capital costs related to growth. In St. Thomas, development charges may be used for:
- water and wastewater services
- roads and related services
- recreation
- library services
- fire protection
- development charge-related studies
Development charges help ensure that growth contributes toward the infrastructure and services needed to support that growth.
When development charges apply
Development charges may apply when land is developed or redeveloped in a way that creates additional demand for municipal services.
Examples include:
- constructing a new building.
- adding to or altering an existing building in a way that increases the number of residential units or the non-residential gross floor area.
- redeveloping a property or changing the use of all or part of an existing building.
Whether a development charge applies depends on the type of development, the location of the property and the applicable exemptions or reductions.
The Development Charges Act, 1997 also provides exemptions for certain types of development.
When development charges are payable
The timing of payment depends on the type of development and the applicable legislation and by-law.
Under the Development Charges Act, 1997, development charges are generally payable when a building permit is issued. However, different payment rules apply to certain types of development.
For information about when a development charge is payable, review the applicable development charge by-law or contact the City before applying for a building permit.
Development charge by-laws
The City has development charge by-laws that apply to different areas of St. Thomas.
View the applicable by-laws:
- By-law 156-2021 – City-wide development charges
- By-law 139-2020 – South Block development charges
- By-law 157-2021 – Dalewood development charges
- By-law 141-2020 – Northwest Area 1 development charges
Check the applicable by-law to understand the development charge rules, exemptions, reductions and service areas that apply to a property.
Development charge background study
The City uses a development charge background study to establish the basis for development charge rates.
The study considers projected growth, the services required to support that growth and the capital costs associated with those services.
View the City's development charge background study and addenda:
- Addendum 3 to the 2020 Development Charges Background Study – August 2021
- Addendum 2 to the 2020 Development Charges Background Study – October 2020
- Addendum to the 2020 Development Charges Background Study – September 2020
- 2020 Development Charges Background Study – April 2020
Annual Treasurer’s Statement
The City Treasurer prepares an annual Development Charges Treasurer’s Statement in accordance with the Development Charges Act, 1997 and its regulations.
The statement provides information on the City’s development charge reserve funds, including development charges collected, funds used for growth-related capital projects, reserve fund balances and other required financial information.
View the 2025 Annual Treasurer’s Statement
The statement provides transparency on how development charge revenues are collected, held and used to fund growth-related infrastructure.
Contact us
If you have questions about development charges or how they may apply to a proposed development, contact the City before submitting your building permit application.
More resources
View previous development charge rates:
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