Proposed Barrie-Oro-Medonte-Springwater Boundary Adjustment Act, 2025, to support growth in Simcoe County by transferring approximately 1,673 hectares of land located in the Townships of Oro-Medonte and Springwater to the City of Barrie

The Ministry of Municipal Affairs and Housing is proposing legislation that would enable the transfer of approximately 1,673 hectares of land from the Townships of Oro-Medonte and Springwater to the City of Barrie (“the City”) as of January 1, 2026, or upon Royal Assent, whichever is later.  The specific lands being transferred are set out in the Schedule to the proposed legislation.

Except where addressed in a regulation, real property belonging to the Township of Oro-Medonte, the Township of Springwater, and the County of Simcoe, as well as any funds (excluding development charge funds) dedicated to maintaining this real property being annexed would be transferred to the City. 

Under the proposed legislation, the by-laws and resolutions of the City would extend to the annexed area with certain exceptions. Certain existing by-laws and official plans passed by the Township of Oro-Medonte, the Township of Springwater, and the County of Simcoe under the Planning Act, Highway Traffic Act, Municipal Act, 2001, Drainage Act or Weed Control Act and any other by-law that the Minister may prescribe would continue to apply until changed by the City.

The City would be able to continue most procedures that are in process, including those related to property taxes, that were commenced and apply to the annexed area. 

Therefore, if passed, taxes due and unpaid in the annexed area would be collectable by the City. The City would pay to the Township of Oro-Medonte, or the Township of Springwater, as applicable, an amount equal to any property tax arrears, including any accumulated interests and penalties, that were due before the annexation. Property tax rate increases in the annexed area will be phased in over a period of 20 years for agricultural properties, and five years for all other properties unless otherwise set out in regulation. This phase-in will be cancelled if there is a change in ownership, use, or property tax class, with the exception of transfers between spouses or in the case of agricultural properties, between parent and child.

For the remainder of the municipal council term, if any councillors of the Township of Oro-Medonte, Township of Springwater, or County of Simcoe hold their offices because they live, own, or rent property within the annexed area, the annexation will not disqualify them from serving as a councillor for the rest of the 2022-2026 municipal council term.

The proposed legislation would require the Township of Oro-Medonte, the Township of Springwater, the County of Simcoe, and the City to pay any compensation to each other if the Minister requires them to do so through a regulation. The Office of the Provincial Land and Development Facilitator will continue facilitating discussions among the municipalities to implement the legislation, including financial compensation from the City.

The proposed Act would also provide the Minister of Municipal Affairs and Housing with the authority to make regulations for:

• Any matters which, in the opinion of the Minister, would be necessary or advisable for the purposes and implementation of the Act.
• Implementing a municipal restructuring as described in O. Reg 204/03 under the Municipal Act, 2001.
• Determining payments to be made between the municipalities.
• Prescribing new ward boundaries for the City for the remainder of the 2022-2026 council term to account for newly transferred land and changes for the 2026-2030 term to reflect Barrie’s desired future ward boundaries.
• Addressing any ward boundary issues that may arise in Oro-Medonte and Springwater.
• Clarifying the annexed areas.
• Governing the phase-in of property tax rates

Analysis of Regulatory Impact:

The permissible regulation making authority will reduce financial impact to the three municipalities (the City of Barrie and the Townships of Oro-Medonte and Springwater) as it will proactively address the ward boundary adjustments that need to be made in ample time prior to the 2026 municipal election planning requirements under the Municipal Elections Act.

Under the regulation making authority, the City of Barrie could be bound to provide financial compensation to the Townships of Oro-Medonte and Springwater for the lands being transferred to the city.  However, the City has the potential to recoup this cost as it will receive property tax revenues, development charges and user fees for properties within the annexed lands, which is anticipated to be developed into residential and/or industrial commercial uses over the medium to longer period.

The loss of lands by the Townships of Oro-Medonte and Springwater will likely result in a loss of tax revenue and user fees for the townships and the County of Simcoe.  Additionally, there will be an opportunity cost for these municipalities since any future development of these lands will not provide a direct revenue benefit to them, but instead the City.

Further analysis is needed to assess the short and longer-term financial impacts (e.g., changes in revenue and expenditures) for the effected municipalities.

Over time, the development of these lands is likely to provide a broader benefit to the south Simcoe area. 
Unless mitigation measures are implemented, the property owners in the annexed lands may also realize an increase in property taxes as the City of Barrie’s general residential tax rates are currently higher than the rates in Springwater and Oro-Medonte. There is regulation making authority to implement a phase-in of property tax rate increases.