Improvement district tolls for services

Last updated on January 31, 2023

Improvement districts may levy tolls to recover the costs of administering and operating services such as water supply and garbage collection. Tolls are not taxes, they are user charges payable by recipients of services within the improvement district.

Revenue raised from tolls is used to meet the administrative and operating costs for providing a service.

Tolls may be a flat rate, a metered rate (where applicable) or a combination of both. The amount of a toll should reflect, as accurately as possible, the cost to provide estimated or actual units of the service consumed. A review of system demand and usage patterns would enable the board of trustees to develop a rate structure that is reasonably simple, equitable and defensible.

The board may adopt bylaws to set toll amounts payable, payment due dates, and any discounts (for early payment) or penalties (for late payment). These bylaws become effective upon adoption and do not require registration by the Inspector of Municipalities. However, one copy of the adopted bylaw must be filed with the the Ministry of Municipal Affairs.