Ajax Council Focused on Development Charge Reduction and Infrastructure Funding

Ajax council focused on a provincial development charge reduction and infrastructure funding application that could reduce residential development charges by up to 50% for three years, tied to a Transfer Payment Agreement still to be negotiated with the province. Councillors repeatedly pressed staff on taxpayer risk, which projects would qualify, and whether council would get a final vote before any agreement is signed. Council ultimately approved the application framework and directed that the agreement return for council approval at a special August meeting.

Topics Discussed

DEVELOPMENT CHARGE REDUCTION AND TPA NEGOTIATIONS

Council considered applying to a provincial program that would allow Ajax to reduce residential development charges by up to 50% for three years. Director Sterling Lee said staff were seeking authority for "up to 50" rather than a fixed figure because "we want to be able to have negotiation room and flexibility at the TPA stage."

Staff said Ajax's final reduction could end up lower depending on negotiations and project assumptions. Councillors also heard that the Transfer Payment Agreement would likely not be ready until mid-to-late August.

Council insisted the agreement come back for review before signature. Councillor Nancy Henry said, "I was elected to make decisions. I want to be able to make the decision."

TAXPAYER RISK, MUNICIPAL CONTRIBUTION AND LEVY QUESTIONS

Much of the debate centered on who would pay if project costs rise or if the province does not fully cover expected amounts. Marilyn Crawford said, "I want to know what the risk is and what we are getting on each of these projects from the government before the close of nominations."

Nancy Henry raised the risk of overruns, saying, "My only concern in all of this is the 10%. That's it," and added that she could not recall "in 16 years us ever doing a project that doesn't come in over budget." She asked whether overruns beyond the town's share would fall "on the taxpayer."

Councillor Sterling Lee also asked directly, "does a taxpayer come out ahead? What is this look like with regards to the levy?" Staff said they were optimistic but did not guarantee there would be no tax impact. Shaun Collier said, "If we can do this without any tax increases, that is our goal," but added there were still risks and the outcome would depend on funding arrangements.

INFRASTRUCTURE GRANT APPLICATION FOR FIVE PROJECTS

Council discussed an application for up to $122 million in provincial funding for five growth-related infrastructure projects. Shaun Collier strongly supported applying, saying, "it would be probably the most ridiculous decision ever made by this council to not apply for $122 million in grant funding."

Staff said the funding would help Ajax advance projects without waiting years for development charge collections. They also said the town could not stack other federal or provincial funding onto this grant application. Collier told council, "we will not be applying any of those funds to this application."

Councillors also asked what would happen if costs rise substantially after approval. Collier asked, "what happens if the project over time increases by 20 30%? Who's paying for that difference?"

ELIGIBILITY, RETROACTIVITY AND PROJECT PIPELINE

Council spent considerable time on which developments would actually qualify for reduced charges. Nancy Henry said her expectation was that "anybody that has not yet paid their development charges would be eligible," though staff indicated eligibility would depend on the final program rules and timing.

Councillors heard there are 36 projects in the pipeline at various stages. Henry said, "I think it's only fair to let folks know of the 36 projects that we're talking about now, how many of them would be eligible and what's a DC loss versus the gain from the money we get from the government."

Staff said the program is retroactive to March 30, 2026. Council asked for a fuller breakdown before final approval, including how many projects qualify, how much development charge revenue would be forgone, and what Ajax would receive in provincial funding.

AUGUST SPECIAL MEETING AND OTHER COUNCIL ACTIONS

Council directed staff to bring the Transfer Payment Agreement to a special August meeting for review before Ajax formally enters into it. That direction addressed councillors' concerns about approving the framework now without seeing the final negotiated terms.

Council also approved a temporary renaming of Pat Bayly Square to Derek Cornelius Square through the end of the 2026 FIFA World Cup. Shaun Collier said, "I always will welcome the opportunity to recognize and promote local Ajax heroes."

Motions

Passed: - Amendment to reduce residential development charges by up to 50% for 3 years, effective March 30, 2026 to March 30, 2029 - Amendment requiring the agreement to be brought forward to council for final approval prior to the town formally entering into it - Direction to proceed with a special council meeting in August to review the agreement before signing - Temporary renaming of Pat Bayly Square to Derek Cornelius Square through the conclusion of the 2026 FIFA World Cup - Bylaw 56-2026 confirming the proceedings of the special meeting held June 16, 2026 - Motion to adjourn the June 16, 2026 meeting

Attendees

The provided notes identify the following councillors as present or participating in debate: - Marilyn Crawford - Nancy Henry - Shaun Collier - Sterling Lee - Lisa Bower

The supplied councillor list for Ajax council also includes: - Rob Tyler-Morin - Joanne Dies