WC146 JanFeb 2026 - Magazine - Page 33
cost. Once developers move ahead with their projects, they pay
development charges. Those fees are then used to pay down the
debt, freeing up debt capacity for the next round of infrastructure.
This system ensures growth largely pays for itself, when it
comes to water and wastewater. But when construction slows,
costs rise faster than development charges, or debt capacity is
stretched too thin, the cycle can stumble, resulting in pressure
on both municipalities and developers.
Infrastructure policy and planning tools
If the funding cycle keeps growth moving, infrastructure planning tools make sure it happens in the right place, at the right
time, and at the right cost. Municipalities rely on three main
guides to steer their decisions:
1. MASTER PLANS
Supported by local municipalities, long-term blueprints look
decades ahead. York Region’s Water and Wastewater Master
Plan sets out how treatment plants, pumping stations and
underground networks will be added, expanded and maintained to support growth to 2051. Endorsed by York Regional
Council in 2022 and amended in 2025, it reflects provincial
legislation that redirects wastewater flows to Lake Ontario and
shifts drinking water planning away from Lake Simcoe. The
plan is updated regularly to ensure infrastructure capacity, costs
and growth forecasts stay aligned.
The link to the master plan is the Region’s capacity assignment cycle. Servicing capacity for new homes—essentially
the water and wastewater “slots” available— is assigned to
local municipalities, who then allocate it to developers. The
next Region-wide capacity assignment, happening this year,
is a critical step in aligning infrastructure investment with the
province’s housing targets.
The master planning process also examines opportunities
to stretch our infrastructure, sometimes called “infrastretching,” which entails finding ways to optimize and strategically
enhance existing systems before committing to entirely new
builds.
2. CORPORATE ASSET MANAGEMENT PLANS (CAMPS)
Required under provincial regulation, CAMPs ensure municipalities maintain the assets they already have. These plans
answer questions like: What condition are our pipes in? When
will we need to replace them? How can we extend their life
at the lowest cost? York Region’s 2024 Corporate Asset Management Plan values its infrastructure at $28.8 billion with
90 per cent in fair or better condition. York Region has been
successful at keeping its infrastructure in a state of good repair,
because Council made a choice to ensure water rates include
contributions to fund this crucial work.
3. CAPITAL PLANS
These are practical, multi-year budgets that turn vision into
WAT E R C A N A D A . N E T
action. They lay out which projects will be built over the next
decade and how they will be funded. York Region’s current plan
commits $12.2 billion for water infrastructure.
Together, these tools help municipalities avoid overbuilding,
prevent costly surprises and ensure water systems keep pace with
community needs.
Funding and financing tools
When it comes to building infrastructure, deciding what to build
is only half the equation. The other half is figuring out how to pay
for it, especially for the big-ticket water and wastewater projects
that keep growth moving.
Funding is the money municipalities collect to cover those costs.
For water and wastewater, this comes from a mix of property taxes,
user rates on water bills and development charges (DCs) paid by
developers when new homes are built and added to the system. But
DCs don’t cover the full cost of growth. Recent provincial legislation
reduced what municipalities can collect through DCs, costing York
Region an estimated $28 million every year. At the same time, water
and wastewater rates are set to rise by 3.3 per cent annually in 2025
and 2026 to help cover ongoing renewal costs.
The result is a shifting balance: more pressure on homeowners
and ratepayers, and less reliance on DCs.
Financing is about timing. A new wastewater facility might cost
hundreds of millions up front, but the revenues to pay it off arrive
slowly, as homes are built and occupied. To bridge the gap, municipalities use debt, reserves (savings set aside from water rates), or—
in some cases—financing provided by developers themselves.
York Region’s fiscal strategy aims to keep growth sustainable.
Debt is generally reserved for growth-enabling water and
wastewater projects, while day-to-day upkeep and renewal are
funded through dedicated reserves. This careful balance ensures
the taps run today, while planning for the millions of litres of
water and wastewater capacity that tomorrow’s communities will
require.
The way forward
Growth in Ontario is certain and additional infrastructure will be
needed to support this growth. The question is whether it will be
managed in a way that communities can afford for both today and
decades from now.
For municipalities, the answer lies in smart planning and
disciplined financial management. By carefully deciding where
and when to invest in new water systems, and by maintaining the
infrastructure already in place, municipalities can meet ambitious
housing targets without compromising long-term sustainability.
Meeting Ontario’s target of 1.5 million new homes depends on
ensuring water and wastewater systems can keep pace. With the
right balance of planning, funding and financing, municipalities
can build for the future while keeping services safe, reliable and
affordable for everyone.
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