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so servicing agreement fees can be a very complicated topic servicing agreement fees and development levies are both types of development charges theyre defined as a fee charged by the municipality for the recovery of growth costs growth costs are recovered to build infrastructure supporting growth to pay down existing debt for past growth works and to avoid taxpayers paying for costs that serve growth servicing agreement fees do not pay for operating costs or renewal of infrastructure thats paid for by taxes from homes and businesses servicing agreement fees must be paid when any new development requires more servicing capacity than is currently provided for that site lets look at how this works in order to build new houses in this new neighborhood the area will need new roads water mains and sewers that connect to individual houses and also connect to the citys infrastructure systems these costs are paid for directly by developers and not servicing agreement fees the houses in th