City of Chestermere Off-Site Levy Bylaw #013-25 (superseded)
Chestermere, Alberta
· No. 013-25
· summary & facts
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0) City of Chestermere
PROVINCE OF ALBERTA Bylaw #013-25
Bylaw #013-25
City of Chestermere Off-Site Levy
Bylaw
Bylaw #013-25
Chestermere Off-Site Levy Bylaw
A BYLAW OF THE CITY OF CHESTERMERE, IN THE PROVINCE OF ALBERTA, TO
ESTABLISH OFF-SITE LEVIES FOR LAND THAT IS TO BE SUBDIVIDED OR DEVELOPED
WITHIN THE CITY OF CHESTERMERE
WHEREAS the Municipal Government Act gives Municipalities the power to enact Bylaws
and impose the payment of off-site levies in respect of land that is to be developed or
subdivided;
AND WHEREAS the MunicipalGovernment Act authorizes a Council collect Off-Site Levies
to pay for the capital cost of infrastructure required to service the Growth of the City;
AND WHEREAS Council has engaged in consultation with landowners and representatives
of the development industry to address and define existing and future infrastructure
required for Growth of the City and the allocations of the capital costs of such infrastructure;
AND WHEREAS Council has received the Report, which set out a fair and equitable
calculation of Off-Site Levy Regulation;
AND WHEREAS Council has advertised it's intention to consider the enactment of this
Bylaw pursuant to the requirements of the Municipal Government Act; and
NOW, THEREFORE THE COUNCIL OF THE CITY OF CHESTERMERE, DULY ASSEMBLED,
HEREBY ENACTS AS FOLLOWS:
1. TITLE
1.1 This Bylaw shall be known and referred to as the "Chestermere Off-Site Levy Bylaw".
2. DEFINITIONS
2.1 "Bylaw" means this off-site levy Bylaw;
2.2 "Chief Administrative Officer" means the chief administrative officer for the City,
regardless of the specific title that may be conferred on that officer from time to
time;
2.3 "City" means the City of Chestermere;
2.4 "Council" means the council for the City;
2.5 "Developable Land" means all land contained within the Development Area:
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Chestermere Off-Site Levy Bylaw
a. upon which Development takes place after the date of enactment of this
Bylaw; or;
b. for which Subdivision approval is obtained after the date of enactment of this
Bylaw;
excluding all Developed Land;
2.6 "Developed Land" means land that has been subject to Development or a
Subdivision prior to the date this Bylaw comes into force, and in respect of which
off-site levies for the same infrastructure have been paid;
2.7 "Development" means "development" as defined in the Municipal Government
Act;
2.8 "Development Agreement" means "development agreement" as referred to in the
Municipal Government Act;
2.9 "Development Area" includes the area of land within the municipal boundaries of
the City identified in Schedule "A" to this Bylaw;
2.10 "Growth" means:
a. the creation of new Lots through Subdivision; and
b. the occurrence of Development;
2.11 "Lot" means "lot" as defined in the Municipal Government Act;
2.12 "Municipal Government Act" means the Municipal Government Act, RSA 2000,
c. M 26, as amended or repealed and replaced from time to time;
2.13 "Off-Site Infrastructure" means those components and projects referred to in
the Report, in relation to water facilities, sanitary sewer facilities, storm water
sewer facilities, transportation facilities, recreation facilities, and fire facilities to
be paid for in whole or in part by Off-Site Levies under the Bylaw;
2.14 "Off-Site Levies" means the off-site levies imposed pursuant to this Bylaw;
2.15 "Off-Site Levy Regulation" means the Principles and Criteria for Off-Site Levies
Regulation, Alta. Reg. 187/2017, as amended or repealed and replaced from time
to time;
2.16 "Report" means the City of Chestermere: Offsite Levy Rates Update, April 09,
2024, prepared by City of Chestermere, attached as Schedule "C" to this Bylaw;
2.17 "Subdivision" means "subdivision" as defined in the Municipal Government Act.
Bylaw #013-25
Chestermere Off-Site Levy Bylaw
3. OBJECT OF LEVY
3.1 The object of the Off-Site Levies is to provide funds to pay for all or part of the capital
costs of the Off-Site Infrastructure required for Growth, as determined in the Report.
4. IMPOSITION OF LEVY
4.1 The Off-Site Levies are hereby established and imposed in respect of all
Developable Land on the basis set out in the Report.
4.2 The amount of the Off-Site Levies imposed is as calculated in the Report and set out
in Schedule "B".
4.3 The Off-Site Levies will be assessed on all Developable Land on a per hectare basis,
excluding those portions of Developable Land that are designated pursuant to a
Subdivision as:
a. environmental reserve;
b. school reserve;
c. municipal reserve; or
d. arterial road right of way; or
e. public utility lots dedicated for off-site levies project.
4.4 Unless otherwise agreed, payment of Off-Site Levies imposed under this Bylaw is
due:
4.5 inthe case of Subdivision, at or prior to plan endorsement; and
4.6 inthe case of Development, as a condition of the issuance of the development
permit.
5. AUTHORITY OF THE CHIEF ADMINISTRATIVE OFFICER
5.1 The Chief Administrative Officer is delegated the authority to enforce and
administer this Bylaw, including, but not limited to the authority to:
a. enter into Development Agreements on behalf of the City with respect to,
among other things, the collection of Off-Site Levies;
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Chestermere Off-Site Levy Bylaw
b. defer or waive collection of Off-Site Levies imposed pursuant to this Bylaw;
and
c. require security for payment of any deferred levies.
5.2 The Chief Administrative Officer may delegate the authority to enforce and
administer this Bylaw.
6. DEVELOPMENT AGREEMENT
6.1 Council may, from time to time adopt policies or guidelines for the assistance
and direction of the Chief Administrative Officer in determining which
Development and Subdivision applications require a Development Agreement.
6.2 Where it is determined that a Development Agreement is appropriate for any
application for Development or Subdivision, the developer or the owner, as the
case may be, shall enter into a Development Agreement with the City that
provides for the payment of Off-Site Levies in accordance with this Bylaw or that
provides for the deferral of Off-Site Levies, including requiring security for the
payment of such deferred levies.
7. ANNUAL REPORT
7.1. Onorbefore December 31 in each calendar year, the Chief Administrative Officer
shall provide an annual report to Council regarding the Off-Site Levies imposed
under this Bylaw, including:
7.2 Off-Site Infrastructure constructed during the previous calendar year;
7.3 Construction costs of Off-Site Infrastructure constructed in the previous
calendar year;
7.4 Estimated construction costs for Off-Site Infrastructure yet to be constructed
and an explanation as to any adjustments to the estimates since the previous
annual report;
7.5 Amountcollected in Off-site Levies; and
7.6 Specifics of total value of Off-site Levies being held by City and yet to be
expended on Off-Site Infrastructure, interest earned and commitments for future
expenditures of such monies.
Bylaw #013-25
Chestermere Off-Site Levy Bylaw
8. ACCOUNTING
8.1 Allfunds collected pursuant to this Bylaw shall be accounted for in a special fund
for each category of infrastructure and expended only as permitted under the
Municipal Government Act.
9. REVIEW
9.1. The City shall review the rates for Off-Site Levies annually and, if required, shall
amend this Bylaw accordingly to update the rates for Off-Site Levies.
10. GENERAL
10.1 Nothing in this Bylaw precludes the City from:
a. imposing further or different levies, duly enacted by bylaw, on any portion of
the Developable Lands in respect of which the City has not collected Off-Site
Levies;
b. deferring collection of Off-Site Levies on any portion of Developable Lands,
including requiring security for payment of such deferred levies; or
c. reducing or forgiving payment of the Off-Site Levies required pursuant to this
Bylaw, or otherwise providing for credits for other Off-Site Infrastructure or
oversize infrastructure constructed by a developer in calculating and/or
collecting the Off-Site Levies that become payable pursuant to this Bylaw.
10.2 Schedules "A" and "B" to this Bylaw, and specifically, without restricting the
generality of the foregoing, the rates for Off-Site Levies set out in the Report,
may be updated or amended from time to time by resolution of Council.
10.3 Inthe event that any provision of this Bylaw is declared invalid or void by any
Court having competent jurisdiction, then such invalid or void provision shall be
severed from the Bylaw and the remaining provisions of the Bylaw shall be
maintained and deemed valid.
11. TRANSITION
11.1. This Bylaw applies to:
a. any Subdivision where the date of subdivision approval occurs on or after the
date this Bylaw comes into force; and
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Chestermere Off-Site Levy Bylaw
b. any Development where the date of issuance of a development permit occurs
on or after the date this Bylaw comes into force.
c. Development Agreements entered into prior to the enactment of this Bylaw
shall remain valid and in effect.
11.2 Any off-site levies payable under Development Agreements entered into prior to
the enactment of this Bylaw, are confirmed and shall continue to be payable
notwithstanding the repeal of previous off-site levy bylaws pursuant to
subsection (d).
11.3 Bylaw #009-24 is herby repealed.
12. EXECUTION
This Bylaw shall take effect and come into force effective after final reading and
signature thereof by the Chief Elected Official and Chief Administrative Officer, or
their authorized delegates.
FIRST READING passed in open Council duly assembled in the City of Chestermere,
in the Province of Alberta, this 8 day of April 2025.
SECOND READING passed in open Council duly assembled in the City of
Chestermere, in the Province of Alberta, this 29 day of April 2025.
THIRD AND FINAL READING passed in open Council duly assembled in the City of
Chestermere, in the Province of Alberta, this 29 day of April 2025.
Mayor, Shannon Dean
SCHEDULE A
Map of Development Area
eee 1 Off-Site Levy By-Law 2025
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Area Calculations
1 4.274ha 9 140.467ha 17 182.664 ha
2 258.918 ha 10346.653ha 18 32.890 ha a
3 237,150ha 113.259ha 1963.117ha
4 31.747ha 123.798ha 20 104.005 he
§ 136.448ha 13 62.606 21 21.925
6 206.962ha 1439.870ha 22 61.35
7 17622ha 15 Developed
8 292.738 ha 16 180.641 ha
Aepatiog darece's If, TTF feo
SCHEDULE B
Summary by Development Area
ver | soe | em [eset] | seen | Sc
on Library ,
Library
| 4 1S 60605|$ 41047|/$ - |S 113,408/$ 35,764|$ 19,046 |$ 13,335 7S 283,204 |
| 6 LS 60,605 | $ 105,776 |$ 65,274|$ 113,408[$ 35,764|$ 19.046 |$ 13,335 7$ 413,207 |
| 8 |S 60,605] $ 105,776 | $ 103,399] $ 113,408|$ 35,764|$ 19,.046|$ 13,335 7S 451,332 |
| 9 [$60,605 | $ 133,050 | $ 103,399 | $ 113,408|$ 35,764 | $ 19,046 | $ 13,335 7S 478,607 |
SCHEDULE C
City of Chestermere: Offsite Levy Rates 2025 Report, April 2025, prepared by City of
Chestermere
Off-Site Levy Rates
2025
City of Chestermere Off Site Levy Rates Update Report 2025
Document Information
Version
Number Revision Date Description
po March 18, 2025 Draft Issued for Stakeholder Review
April 8, 2025 Issue for Bylaw 013-25
April 9, 2025 Issue for Bylaw 013-25 Revision
Acknowledgements
Chestermere Administration would like to thank all Stakeholder including City of
Chestermere staff, developers, and the Building Industry and Land Development
Association (BILD) who supported the work of this rate update. Chestermere also
acknowledges that Chestermere's off-site levy (OSL) model and reporting is based on
offsite levy model and report template developed by CORVUS Business Advisors Inc. and is
used in the development of this report.
Disclaimer
City of Chestermere has relied upon many third-party reports provided by
engineering/consulting advisors to provide most of the data and information used to
construct the offsite levy model and create the rates, such as planning data and
assumptions, development forecasts and assumptions, infrastructure costs and costs
estimates, allocations to benefiting parties, allocation to benefiting areas, historical
financial details, and other assumptions etc. As such, City of Chestermere makes no
guarantee as to the accuracy of the input data and information provided by these groups
or the results that stem from this data and information.
Offsite levy rates are not intended to stay static; they are based upon educated
assumptions and the best available information of the day. Planning assumptions, cost
estimates etc. can change each year. Accordingly, the Municipal Government Act requires
that offsite levy rates be updated with the most available information on a regular basis
and a status report provided to Council annually. When information changes, it will be
reflected in a future update, and rates adjusted accordingly.
Tables in this report are directly from the OSL model. The model rounds displayed rates to
the nearest dollar, while calculations use full precision. Minor discrepancies, less than
0.001%, may occur in totals due to this rounding, and for the purpose of this report are
considered insignificant.
City of Chestermere fi
City of Chestermere Off Site Levy Rates Update Report 2025
Contents
APPENDIX C: SANITARY OFFSITE INFRASTRUCTURE .............c:csscsssesccresssssssecceeersessessssnsneersntnsssseserens 2D
APPENDIX D: TRANSPORTATION OFFSITE INFRASTRUCTURE ...............:::sccccssccssssesssseceneettrssssceenters 20
APPENDIX E: STORMWATER OFFSITE INFRASTRUCTURE ...........:::cccssssccssssceresssenesesssersesssesseesseeessees 4D
APPENDIX F: RECREATION OFFSITE INFRASTRUCTURE ...........ccccssssessccceesssssesseccrsecetransssssssaaceennssnrenes 42
APPENDIX G: FIRE STATIONS OFFSITE INFRASTRUCTURE .........0..csssestecesssssesssrseeeeecatssssssaaeeeneasareaes DO
APPENDIX H: LIBRARY OFFSITE INFRASTRUCTURE ..........:.sccccscscssscoreccserscersesccessncsscaseserenssesssesssserseees OD
City of Chestermere iii
City of Chestermere Offsite Levy Rates Update
1 INTRODUCTION
Bylaw 009-24 amended by the City of Chestermere ("the City") in 2024 defines offsite levy
charges for roads, water, sanitary, stormwater, recreation and fire infrastructure in the
municipality. The City wishes to update this bylaw, amending certain infrastructure in
alignment with the City's current capital plans, ensuring updated costs and development
forecasts are reflected fairly and equitably in rates, and amending other key inputs and
variables thereby ensuring a financially sustainable community.
This report outlines the methodology and information used to update the offsite levy
charges for the City, as well as other key findings and recommendations.
The City maintains various capital plans, and these plans have been used to generate key
inputs for this offsite levy rates review. City staff and their engineering advisors reviewed
existing plans and identified offsite projects for roads, fire, water, sanitary, stormwater,
recreation, and library'.
The City's review also included:
# Incorporation of offsite levy area measurements and land development forecasts.
# Incorporation of infrastructure costs and allocation percentages for existing
development, new development, and other parties.
Reconciliation of offsite levy reserve opening balances.
*" Development of offsite levy rates and associated report using Chestermere's offsite
levy model.
= Review of offsite levy rates with development industry, staff, and Council.
Offsite levy rates within the City's offsite levy model are forecast using a rolling 25-year
review period. During this review, a cut-off date of December 31*, 2024 was established (the
most recent year-end when the project commenced), and so the 25-year review period
stems from 2025 to 2049. Project expenditures, offsite levy receipts, and other financial
records were collected as "actuals" from City financial records up to the specified cut-off
date. Any financial details beyond the cut-off date are considered estimates. Upon
completion of the City's next rate update, information from January 1*, 2025, up to the new
cut-off date will be converted from estimates to actuals.
Costs that benefit development prior to and within the review period are included in rates.
Costs that benefit development beyond the review period (called "financial oversizing")
are excluded from rates. In future years, when rates are updated, and the rolling 25-year
period moves further out, offsite infrastructure costs beyond 2049 will gradually find their
way into rates.
lit is not within OSL scope of work to review or assess capital plans. Infrastructure requirements, costs, allocations
etc. are determined by the municipality and their engineering/consulting advisors through various technical
document.
Page | 1
City of Chestermere Offsite Levy Rates Update
2 KEY FINDINGS
Key findings pertaining to the update of City offsite levy rates are as follows:
e Offsite infrastructure costs to be included in the offsite levy bylaw totals approximately
$788.24 million (current dollars). An overview of offsite infrastructure costs and maps is
provided in Appendices BI], C1, D1, E1, Fl, G1, HI.
e Before determining how the infrastructure costs will be allocated to parties that benefit
(eg., existing development, new development, other municipalities etc.), financing
provided by way of special ear-marked grants and other contributions are deducted from
offsite infrastructure costs. For this update, the City has identified approximately $17.01
million in special grants and contributions. An overview of special grants and
contributions and resulting net costs is provided in Appendices B2, C2, D2, E2, F2, G2 and
H2.
e The residual benefit allocated to existing development (the City's share) is approximately
$85.02 million. The share allocated to other stakeholders for joint benefiting projects have
been excluded from the model calculation at this time. (e.g. Rockyview and Alberta
Transportation contributions to the Highway | interchanges).
e That portion of cost which is allocated to future development totals approximately $686.21
million {$316.84 million (oversizing) + $369.38 million (in rates)} and is based on the
allocations shown in Appendices B4, C4, D4, £4, F4, and G4. However, a portion of the cost
allocated to future development is beyond the 25-year review period (called "financial
oversizing"). Financial oversizing is determined based on the anticipated year of
construction (construction staging) which is provided in Appendices B3, C3, D3, £3, F3, G3,
and H3.
e Of the $686.21 million in total offsite infrastructure costs allocated to future development,
the share allocated to future development that is included in rates today (the offsite levy
share) is approximately $369.38 million, as shown in the table below. A complete
summary of offsite infrastructure net cost "flow-thru" is provided in Appendices B6, C6, D6,
E6, F6, G6, H6.
Summary of Infrastructure Costs & Allocations
Developer
Special Grants &| Muni Share other Cost Beyond Dezsper
Infrastructure Contributions ofCosts | Stakeholders' 26 vre Costs Total Costs
Share of Costs (In Rates)
(Financial
Oversizing)
TENE ENaReey et $ 6,467,188 $ 27,199,629 $ - $ 110,448,871 $ 106,903,500 $ 251,019,188
Water $ 3,499,537 $ 2 $ ii $ 78,859,720 $ 64,105,776 $ 146,465,033
Sanitary $ 4,399,274 $ 6,833,439 $ z $ 65,990,138 $ 66,034,615 $ 143,257,465
Stormwater $ - $ - $ - $ 17,509,245 $ 69,917,833 $ 87,427,078
Recreation $ 2,644,885 $ 37,306,163 $ - $ 42,292,572 $ 39,090,378 $ 121,333,999
Fire $ . $ - $ = $ 516,180 $ 14,224,320 $ 14,740,500
Library $ : $ 13,680,000 $ - $1,221,200 $ _9,098,800_$ 24,000,000
Total $17,010,884 $85,019,232 $ = $ 316,837,925 $ 369,375,222 $ 788,243,263
Page |7
City of Chestermere Offsite Levy Rates Update
Before allocating infrastructure costs to benefitting lands, offsite levy costs must be reduced by
the amount of levies collected to date. Up to December 31", 2024, the City has collected
approximately $83.50 million as shown in Appendices B5, C5, D5, E5, F5, G5, and H5.
Summary of Offsite Levy Collections
Transportation $ 26,543,468
Water $ 18,010,981
Sanitary $ 13,100,301
Stormwater $ 12,092,900
Recreation $ 12,268,292
Fire $ 1,486,299
tibrary
Total $ 83,502,242
To facilitate the allocation of infrastructure costs to those lands that benefit from the
infrastructure, the City is parsed into 22 offsite levy areas. The area boundaries, numbering
schema, and area measurements are described in Appendix A along with an offsite levy
map; and an overview of offsite infrastructure allocations to each benefitting area is
provided in Appendices B7, C7, D7, E7, F7, G7, and H7.
To calculate offsite levy rates, it is necessary to forecast the amount of land that will develop
during the 25-year review period. Land development forms the denominator of the rate
calculation. A larger denominator reduces rates but could potentially result in under-
collection thereby placing an increased burden on tax payers. A smaller denominator
increases rates but could potentially result in over-collection thereby placing an increased
burden on future development. Accordingly, land development forecasts need to be (a)
reasonable and reflect current planning assumptions including the current pace of
development in the community, and (b) updated regularly.
For this update, the City is forecasting development of approximately 766 ha. over the 25-
year review period. The land development forecast and underpinning assumptions are shown
in Appendix A. This represents a small decrease since the 2024 update, which moderates the
increase in rates as discussed further below.
Offsite Levy Accounts. The City is managing offsite levy receipts and withdrawals via 7
accounts, in alignment with MGA requirements (i.e., one account for each infrastructure
type). The reason that an account is required for each infrastructure type is because offsite
levies can only be used for the type of infrastructure for which they were collected (e.g.,
water levies can only be used to construct water offsite infrastructure, not sanitary
infrastructure etc.). An overview of updated account balances is shown in Appendices B8,
C8, D8, E8, F8, G8, and H8.
interest. Offsite levy accounts (both actual and forecast) are impacted by interest. Actual
reserve inflows and forecast account balances that are in a positive position earn interest
(as required by the MGA). Actual reserve outflows and forecast account balances that are
Page | 8
City of Chestermere Offsite Levy Rates Update
in a negative position are charged interest (forecast balances that are negative indicate
that front-ending will be required).
An overview of account interest rates and forecast balances over the 25-year review period
is shown in Appendices B9, CQ, D9, E9, F9, G9 and HY.
Front-ending. Front-ending is an extremely important concept that underpins rigorous
management of offsite levies. Front-ending represents debts owed by future development to
the municipality for past construction undertaken by the municipality on behalf of future
development--i.e., a municipality will often pay for its share of an offsite infrastructure project
in addition to that portion of the project which benefits future development when offsite levy
reserve balances are insufficient to pay for future development's share of the project.
Because front-ending balances represent debts owed to the municipality, they need to be
clearly reflected in official City documents such as levy account balances, financial
statements (e.g., front-ending notes), or accounts receivables, etc. This documentation
enables the City to collect on these debts as future development occurs, and offsite levies are
collected.
At end 2024, the overall net front-ending due to the City was $36.68 million. A complete
reconciliation of balances for each of the 5 accounts is provided in Appendices B8, C8, D8, E8,
F8, G8 and H8.
Summary of Account Balances & Front-ending
Account/Reserve eoreunt ane
Balance ending
Due
Transportation $ 4,697,968 $ :
Water $ (1,927,498) $ 1,927,498
Sanitary $ (34,753,919) $ 34,753,919
Stormwater $ 7,435,256 $ 2
Recreation $ 12,912,705 $ 2
Fire $ 1,490,169 $ 7
Library $ - $-
Total $ (10,145,318) $ 36,681,416
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City of Chestermere Offsite Levy Rates Update
3 RATES
For future development to pay for its share of the $788.24 million infrastructure costs either
built already or contained in the City's future capital plans, rates are $409,910 per net
hectare on a weighted average basis. These rates reflect the actual cost of infrastructure
required to facilitate development in the City. A comparison of offsite levy rates with other
municipalities is summarized in Appendix G.
Since the last update, rates have increased an average of ~11.8%. The reason for this
increase is increase of infrastructure costs, and additional projects within the 25-year
review period. The land development forecast has decreased ~1.29%.
Summary of Offsite Levy Charges (Per Net Ha) ?
Transportation | Water Levies} Sanitary |StormLevies| Recreation Fire Levies Library
Levies (/Net Ha.) Levies (/Net Ha.) Levies (/NetHa.) | (/NetHa.)
(/Net Ha.) (/net Ha.) (/Net Ha.)
[High [S$ 113,408 § 60,605 |$133,050 |$104,413 S$ 35,764 § 19,046 |$ 13,335
§ 113,408 $ 60,605 [$29,518 $ 35,764 $ 19,046 |$ 13,335
Weighted
Average = |< 113,408 $ 60,605 _ {$83,125 84,627 $35,764 219,046 [5 13,335
2 Highs, lows, and weighted averages are shown for information purposes only. Developers pay the actual offsite levy
charges pertaining to their specific offsite levy area.
Summary of Offsite Levy Charges by Area (Per Net Ha) °
Area #
Transportation | Water Sanitary Stormwater Recreation .
s ' Library Total
Levies Levies Levies Levies Levies
1 $ 113,408 § 60,605 $41,047 $- $ 35,764 $ 19,046 $ 13,335 $283,204
2 $ 113,408 $ 60,605 $98,471 $83,327 $ 35,764 $ 19,046 $ 13,335 $423,955
3 $ 113,408 §$ 60,605 $70,531 $86,759 $ 35,764 $ 19,046 $ 13,335 $399,446
4 $ 113,408 $ 60,605 $41,047 $- $ 35,764 $ 19,046 $ 13,335 $283,204
5 $ 113,408 $ 60,605 $41,047 $73,638 $ 35,764 $ 19,046 $ 13,335 $356,842
6 $ 113,408 $ 60,605 $105,776 $65,274 $ 35,764 $ 19,046 $ 13,335 $413,207
7 $ 113,408 § 60,605 $30,063 $- $ 35,764 $ 19,046 $ 13,335 $272,220
8 $ 113,408 §$ 60,605 $105,776 $103,399 $ 35,764 $ 19,046 $ 13,335 $451,332
9 $ 113,408 §$ 60,605 $133,050 $103,399 $ 35,764 $ 19,046 $ 13,335 $478,607
10 § 113,408 $ 60,605 $88,308 $103,399 $ 35,764 $ 19,046 $ 13,335 $433,864
114 $ 113,408 §$ 60,605 $41,047 $- $ 35,764 $ 19,046 $ 13,335 $283,204
12 $ 113,408 § 60,605 $29,518 $- $ 35,764 $ 19,046 $ 13,335 $271,675
13 $ 113,408 8 § 60,605 $98,471 $83,327 $ 35,764 $ 19,046 $ 13,335 $423,955
14 $ 113,408 § 60,605 $41,047 $77,262 $ 35,764 $ 19,046 $ 13,335 $360,466
15 $ 113,408 § 60,605 $70,531 $- $ 35,764 $ 19,046 $ 13,335 $312,688
16 $ 113,408 §$ 60,605 $93,486 $73,830 $ 35,764 $ 19,046 $ 13,335 $409,473
17 $ 113,408 § 60,605 $41,047 $86,759 $ 35,764 $ 19,046 $ 13,335 $369,963
18 $ 113,408 § 60,605 $105,776 $104,413 $ 35,764 $ 19,046 $ 13,335 $452,345
19 $ 113408 §$ 60,605 $82,502 $87,678 $ 35,764 $ 19,046 $ 13,335 $412,337
20 $ 113408 §$ 60,605 $105,776 $67,206 $ 35,764 $ 19,046 $ 13,335 $415,139
21 $ 113,408 $ 60,605 $82,502 $78,181 $ 35,764 $ 19,046 $ 13,335 $402,841
22 $ 113408 §$ 60,605 $88,308 $83,327 $ 35,764 $ 19,046 $ 13,335 $413,792
3 Area # refers to areas outline on the figure presented in Appendix A.
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City of Chestermere Offsite Levy Rates Update
4 RECOMMENDATIONS
City Administration recommends the following:
1. Implement the updated offsite levy rates outlined in Section 3.
2. Consider comprehensive funding models for infrastructure projects.
3. Amend the offsite levy account balances in City documentation to align with
Appendices B8, C8, D8, E8, F8, G8, and H8. In so doing, remove excess cash from
reserves (if any) to pay down front-ending debts.
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City of Chestermere Offsite Levy Rates Update
Al. Offsite Levy Areas
The City is parsed into 22 offsite levy areas, as shown in the map below. Areas take into
consideration existing/planned infrastructure basins as well as natural and man-made
barriers (eg., rivers, highways, etc.). All offsite levy infrastructure costs are allocated to one
or more areas.
Offsite Levy Areas
Se SS: Off-Site Levy By-Law 2025
22 reunite _ Chestermere, Alberta
a Ne Lig eh a0
iP, ee) is 3
Wes = ----
"i ame (SW EGG oe
ii wee fa ienle /
=) ee Ley? » SSeS ee
Ws os 7 : we
Area Calculations
14.274ha 9 -140.467ha 17 182.664 ha
2 258.918ha 10346.653ha 18 32.890 ha
3 237.150ha 113.259ha 19 63.117ha
4 31.747ha 123.798ha 20 104.005ha
5 136.448ha 13 62.606 21 21.925
6 206.962ha 1439.870ha 22 61.35
7 17.622ha 15 Developed
8 292.738ha 16 180.641 ha
peer Areay Tt FY ereit
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City of Chestermere Offsite Levy Rates Update
Total net development area, the amount of land available for development across alll
offsite levy areas, is approximately 2047 net ha. In calculating net development area only,
those lands remaining to be developed (at Dec 31, 2016) that have not previously paid
offsite levies have been considered (as required by legislation/regulation). Further,
allowances have been made to net development area calculations for environmental
reserves, municipal reserves, arterial road right of way and public utility lots dedicated for
off-site levy projects.
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City of Chestermere Offsite Levy Rates Update
Offsite Levy Net Development Area
| _ _ u Gross Area | Environmental Supaetad Municipal Arterial Right at
Area Ref. # Development Area Location Land Use tha) Reserved tha} ub-tota easeeas of Wey Development
} Area {ha.}
[41 [Westmere -- C*~"'C*diCReSierNtin' -LoweDeensity =| BOT OTC TCT 8
[12 [Westmere -- C*~"'COC(ReSidentig'-MeciurnvHighDensity [ = = [ = [| =- [| - YJ of]
13 |Westmee -- SSSC~*~*CommeprcingI_ = eC" CTC C("'"éAT [UCC CT
| 14 |Westmere --CCtC*~*siindu strip Se
[415 |Westmere -- C--"'";é'dMers-- Se
[24 [North Waterbridge = s*dReSidentil-Low Density [| 11553[ | 11553] 4155] = dT 103.98 |
2.2 [North Waterbridge ss SSs*[ReSsidential-MediurvHighDensty [| == ss] CCK CE
[23 [North Waterbridge SS Cd(Commercial = tidTCC"'éil TTC TT 8 |
[24 [North Waterbritge ss Csindustrigh = C"'"CsLS:SO;!!CMBCOTUULUC™ChCUTC OT YO 0 |
2S [North Waterbridge Cher SC
| 31 [Chelsea &Dawson'sLanding = [Residential-Low Density --Sss| tees [SST 0s.13] rat T7740 |
| 32 [Chelsea &ODawson'sLanding _--S--[Residential-MediunvHighDensity [ = 1245[ ts 2 |
3.3 [Chelsea&Dawson'sLanding Ss [Commercial ~~ CCT ST tC C10
34 [Chelsea &Dawson'standing --=----ifindustrist! = CT --"'dRSCCCC"('RN ST
[35 |Chelsea&Dawson'sLanding ---s«[Other = CT ('idSSC:C('"'($NS*SCYS (GS
[44 [South Shore SC*~*~*R@SHdenti~Low Density =| S| C"'"RSSOC#NS T3187] 28.50 |
4.2 |SouthShore ss C*~*~"C;*C'*dR@Siddetiad--MeciuVHigh Density [ sss | CC CTC" Cd -
43 |[SouthShore Commerc) TT
|--_44.-- |SouttiStene = indie Se ee ee
a 5 a) a res (0 ee ae
[s1 lEdgewater tS CCSC*C*"'"'*'*dR@Sidentin'--LOw Deensity =" | 198297 SOT t2779] 1278] 113.30
§.2 [Edgewater SCCSCSCSC*dRgSidde@ntln-Me|diumHigh Density | ss | CEC CK CT CC Ce
[53 [Edgewater C~C"'CSC#*CCOMmerciss:-- = C"('('('<('dLSO OSG] CCC"'CTSOOUUOCOC2}MGT CC - YTTC*dtS
[| 84 jEdgewater = st C"'C*diNQustriph ST de
6.1 _[Southindustrial =--ss--s("s"sés5s's'sés<'sS*S«dCRSide@nti-Low Density =ss/§«S Ss] CE CC' UT
[62 [South industrial ss SSSC*dReSientiol-MediumHighDensity [| CT
| 63 |Southindustrial = CdCommercial = CT C"'"CCL]SOOUUUUUTUC OT
[64
[65 [Southindustral ss C--C"'CtHer = CC( Cd
[7.1 |Kinniburgh CC~"'(C™C*CiReSidentigl-Low Density | SY Cid GS 40.21 |
[72 [Kinniburgh --C*C"'(SS#C(ReSidentiol-MMediurvHighDensity | = =| S| ~ TC
[7.3 |Kinniburgh ss SSSSSC*dGommercint| = CT Ce
| 7.4 [Kinniburgh --Csdnetu strip Se
[78 [Kinntburgh Cher es
81 [SierraVista -- CSCSC*dReeidentig-Low Density Ss | 292.74] 39.00] svat as37 tT. 37 |
| 82 |SierraVista ss SCSSC«*dReSicdention -MMediumvHighDensity [| |
| 83. [Sige Wista Ee leommersigt ee
eS (Pe | ey ee es aera 8 eee
6 [Siete Po hs iti es a
[91 |EastAcreages ss SSCSC*Residenntion-Low Density =--»sss| OT tots sot YS 0 |
[92 lEastAcresges -- ( CCSC*dReeSidentig-MediurvHighDensity [| ss 51.70[ --12s0[ 9.20] CC"'RSCC*C*C*C#SQ2.'|
[D3 [GastAcrsges Commerc OT
Sa a (fee: ee) ( ( e,
[95 [EastAcreages --C(ti'itHer SP |
Page | 8
City of Chestermere Offsite Levy Rates Update
(10.1 [tNountain View Park ----s*[Residtential-Low Density sss [| tonto tz CdEC*'éiW AS |
10.2 [Mountain View Park sss ReSidential-MediumtHighDensity | = st.19| Cd (GT RC"'(C;Cé*drLSC'CSC'#Y34«TZ '|
10.3 [Mountain View Park Commercial = ('RSC ,C"'C'NNCO*NCO#COC#C#C"('é'éNQ YT C(t TC"'CNCO+*rNCO#OC#C#C#S. OD
[10.4 [Mountain View Park sind striph = CidEC(SSC"'éHA Tt [toa C~C"'dLSCSC*'é#AOS3« |
(10.5 [Mountainview Park CdOther Se tt (CCidEC($NN$NNN BHT (Cd Ct C(s:*C"'CL:SCOC*#C#C#«.R7#«:
(111 [Goodacre ss C~"'CTOC(ReSi@entigl-LoweDensity =] CT C"'"C;é*rLSOCOCOCOCOCOC COT
| 11.2 [Goodacre CC*C"';C*diR Sift -MecivmMHigh Density | =» «3267 82
11.3 [Goodacre C™C~"'*'";C'*dCmmeercisi@_ Se --C'iSS C"'é'"RTSSCSC'"'(NTOT TT
[114 [Goodacre Cidintustript Sn
[415 |Goodacre tC'; OC(OtNer:~=--=-- CST
|__ 12.1 [NorthEastwestmere ss sReSidentiai-Low Density =| = sed] CC" OTTO 8.22 |
| 12.2 [NorthEastWestmere ----s[ReSidential-MediumvHighDensty [| =| Cd CC CTC("'"C TS CTCOOUUCOCOSY
[12.3 [NorthEastWestmere ss sCommercial = tT C"'"'iRSOCCCSdTC"C(§$NNNN Ss] ss as
| 12.4 [NorthéastWestmere ss sintustrigt CT sCidE Ge
(125 [NorthEastwWestmere Other ST
| 13.1 _|MorthAcreages ss SSSSC*dR@Sientil-Low Density = | 1.33] (COO TC( (sO TCS
13.2 [NorthAcreages ss SCSCSC*dRR@Sddetil-MediumMHlighDensity | =| = ss TC PC
13.3 |NorthAcresges ss C«(Commercial, = (ti'i;SC("'CNSCLCOOOOOC"(TYLSCOC'C$'''N CT OCTOOUOUOUOC"'CCCT CYCOUOUOUOUOUOUCOCOC;«CL;,|#WNXU NNN Lj'
13.4 _[NorthAcresges = Csdindustrigph SCT Ci CC"'C*LCOCOCOC*#('#'SNUSTOOOCFCOU- OYC™~"'CNCNSS&@SCSNC§RN#N'N 1428
13.5 |NorthAcreages C=' SCT C"(tsé'iRSC( (Se
14.1 [Paradise Meadows = SCdReSiential-Low Density | 3653| | 3653[ 365] - | 32.88]
14.2 [ParadiseNeadows sss s«[ReSidential-MediumHighDensity | [| [| - | - | - fo - |
| 14.3 [ParadiseMeadows ss CdCommercioh SC C(i;S eC --C--"i~dSC
14.4 [ParadiseNeadows ss Ciindustrigp) S| --"('iSC( CS
14.5 |ParadiseWWeadows Other Ss
15.1 [ExistingDevelopment --s--s--SSs«[ReSidential-Low Density [| 217) ~~ | 2a7t CCT
15.2 |ExistingDevelopment --=ss--ss*[ReSidential-MediumHigh Density [| | | - | - [ - [oo - |
15.3 [ExistingDevelopment ss ((Commercial Se C"'"('(!SSSCOCOOUUUTUUUUUUUULUTCU
[15.4 [ExistingQevetopment ss sindustriai SC Cid CT
| 15.5 |ExistingDevelopment ss Other Cs
[164
[16.2 [BridgePort ss C*C"'SS™C#C(ReSicdentigl-MeciumiHighDensity [ = §| [| =- | - jy - | - |
[16.3 [BridgePort C"'C™#*(COMmerciol = i" (C'ir;SC"(<('('SCA2 C"'RRSCOCOC*'C'#ANAQTC §$ Yt 80.99 |
[16.4 [BridgePort ss CC"'CS#*sIndustrigph «Ss C"'i;SC CC' CdS C"'CSCWLSOOOOOCOC COT
16.5 |BridgePort = C--"'"'SC*Other":~=--=--C--"*'"'"('C;S*S#SSC*dTSOCiC'C(#RSNN'N'NN;C'EYWNWNNNNNN Js = J Ds
[174
[17.2 [Waterford CCCSCC*diRSidentiq~MediumvHighGensty [| =ss | CT
[17.3 [Waterford CC*:*C*i'id merch = TC Cd 8
[174 [Waterford CC~C~"'*é'éidnu strip) ST --"'"RSCC'"(N'N'N S@WEC)$NUNRR$NNNNN = JP
17S [Waterford -- C--C~itHer
[181 |SouthfastChestermere --ss--sSsdResidential-Low Density --=Ss | --S--/s = 29022 OT C7 8.13 |
[182 [SouthEastChestermere --»ss--sResidential-MediumHighDensity [| | = [| ~ | - s
[18.3 |SouthEastChestermere sss s(Commercial ~=-- (id CT TC"'('CCdTSOOC"'CYSN:C QNQ7@[ CY 887
18.4 _|SouthEastChestermere ss sinctustrigd = CT
("18.5 |SouthEastChestermere (Other
19.1 _[BridgePortEast = (CSCSC*dRSidfetin Low Density =ss--s |] TC Cd TTY ta 8.27 |
19.2 |BridgePor-East SS CReSientiol-MediumHighDensity | ss 663] CT tC"('ié'é wT C"( CC 6]
| 19.3 [BridgePort-East ss C*Commercish-- SC "(CTC CS C(I |
19.4 _|BridgePort-East ss SCSCédimtustripg = CC Cs
[19.5 |BridgePort€ast ---- tC"(i'"'é'*dOHerS eC C"'"('"RSOC*C*C*C("(R'R'N'NS$'"CWNNCNNNCCO se
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City of Chestermere Offsite Levy Rates Update
20.1 [Webster CdResidentiol-Low Density | evo | eco co 86.00
| 20.2 [Webster CCC Residential MediumighDensity [Ts
| 20.3 [Webster Commercial Co 400
(- 20.47 [Webster intustrigh sO BOY 82.70 |
(el). a So ene er ee ee eee ee eee
| 21.1 [BrideportCentral --SSC*dRReSidenttial-Low Oensity | 7 Ta 753 |
[21.2 [Bri¢epor-Central ----SSCSCSC*d(RReSidenttial--MediumHighDensity [| - |
i 21.3 7 [Brideport-Central Commercial tT Te 12.20
("214 [Bri@eportCentral SS sindustrip eT
(218 [Brideport-Central Other
[221 _|NorthAcreages-Fast ------SSs([Residential-Low Density ss [GST 0o | soa3 sos eo 52.80 |
223 |NorthAcresges-East --Commerciah
22.4 [MorthAcreages-East Ss siindustriat =P eT
(22:5. [Nothierenges-East= Other eC eT TTCtC'=# {Cr let
| Total 2476.60 aaa 230388 [atts 45a5 [2,046.89 |
Page | 10
City of Chestermere Offsite Levy Rates Update
Summary of Offsite Levy Net Development
Area
Gross Development Area 2,426.50
Less Environment Reserve 122.63
Less Municipal Reserve 211.15
Less ROW Allowance 45.85
Net Development Area 2,046.89
*Note: 1 Hectare (ha.) = ~2.47 Acres
Net development area definitions will be applied in determining offsite levy obligations of
developers on application for subdivision or development within the City of Chestermere.
Net development area is defined as follows:
e Gross Area -- The area of lands to be developed in hectares that have not previously
paid an offsite levy.
o Less: Any environmental reserves contained within the development area.
o Less: Any allowance for Municipal Reserves.
oo _Less: Arterial road right of way that bisects the development lands.
o Less: Public utility lots dedicated to off-site levy projects.
e Equals: Net Developable Area, which is the area subject to offsite levies.
A2. Development Staging
A rate planning period of 25-years underpins the offsite levy model and rate calculations.
Many municipalities use this planning period as it provides a reasonable timeframe to
recoup the costs associated with offsite levy infrastructure construction, and it aligns with
the timeframes of many municipal capital planning and construction cycles.
Of the 2046.89 net ha. of development area available across all offsite levy development
areas, planners estimate that approximately 766 net ha. (37.6%) will develop during the
next 25-years (the rate planning period) as shown in the tables below.
Summary of Anticipated Development during the 25-year Rate Planning Period
Developed Since Model Created 324.88 15.9%
Developed In Next 25 Years 766.00 37.4%
Developed Beyond 25 Years 956.01 46.7%
Net Development Area 2,046.89
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City of Chestermere Offsite Levy Rates Update
Anticipated Development During the 25-year Rate
Planning Period
| Area
| Area | Developedin | 525 | 2026 | 2027 | zo2za | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 | 2039 | 2040 | 2044 | 2042 | 2043 | 2044 | 2045 | 2048 | 2047 | 2048 | 2049
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Page | 12
City of Chestermere Offsite Levy Rates Update
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Page | 13
City of Chestermere Offsite Levy Rates Update
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oo a (0 eB 2 2 es eS Ss es eS Se 2S eee ee ee ee
Ti i es ae Seen ee le a ee ee ee ee ee ee el
Cy ee se en EE Es ed ee ee ee
| 7as.00 | 98.61 | 5265 | 50.92 [84.44 [5692 [37.31 | 1750] 12.70 [ 24.00 [ 33.90 [ 22.87 | 2086] 2450] 2450] 19.50] 2950 | 24.00 [ 3010] 1823 | 2243] 14.741 1796 [ 1459 [ 10.00 | 12.98 |
Page | 13
City of Chestermere Offsite Levy Rates Update
APPENDIX B: WATER OFFSITE INFRASTRUCTURE
BI. Water Offsite Infrastructure Costs
To support future growth, water offsite infrastructure is required. The estimated cost of this
infrastructure is based upon: (a) actual construction costs to the cut-off date, (b)
debenture interest associated with financing, and (c) future cost estimates. Total cost is
approximately $146.47 million as outlined in the table below. Actual costs, debenture
interest (if any), and cost estimates were provided by City staff. It is important to note that
these costs represent "gross" costs, of which only a portion will go to support future
development during the 25- year review period. The remainder of this section outlines how
the "net" costs for future development are determined.
Summary of Water Offsite infrastructure
Cost of i
Future Estimated Cost I
item Project Description ger wher Debenture _ jof Work Yet tobe P< vty
oa Interest Completed
1__ |East Calgary Regional Water Line - Tie-In and Qversizing 1S 2.126.144|5 -_|8 -_ |S 2.126.144
2 __ [Water Reservoir Expansion & ECRW Line Tie-In to Reservoir [S 16.023.672)5 10054007$ = - [S$ 17,029,071
3__ [NW Water Reservoir & Pump Station Phase 1 L$ -|$ ss - * [S$ 18.330.000/$ --18.330.900
4 [New Water Supply Main from Calga L$ -|$ ss - [$4 429000/5 4.422.000
5 __|Main Pump Station Upgrade [s_1920.258/8 = - [SC CdS 1.920.958
§ _ [Distribution Trunk in Chestermere Bive (North z= -|$ -[$ 14560.140|/5 14,560.140
7 -- [Distribution trunk in Rainbow Road (Vest) Waterford Blvdita |S - | SD al $ 349382615 3.493.826
Chestermere Bivd
8__|Distribution trunk in Twp Ra. 240 (South) Phase 1 [s a7arsga[s SC 1797594
§ __ [Distribution trunk in Range Rd. 281 | & -|[$§ _-[$ 7700000[$ 7.700.000
10 [Main Pump Station Upgrade Phase 2 $ -[§ -|[$ 2430000[5 2.430.000
11 {lain Pump Station Upgrade Phase 3 [s -|= = {s 650,000 [5 550.000
12__ [Distribution trunkin Twp Rd. 240 (South) Phase 2 (from stusto RR281) | $ -([$ _--- |S _3.773.000[$ 3,773,000
13 [NW Reservoir Supply Main [3% -[$ -[$ 4560,000/5 4560,000
| _14 [NW Reservoir and Pump Station | $ -|$ _- [$ 18,260,000/$ 18,260,000
15 __ [W7 SE Reservoir & Pump Station Phase 1 EE: -[$ ss - * [S$ 20.163,000[5 20,163,000 .
| 16 _[\W8 SE Reservoir and Pump Station Phase 2 | $ -|$ _--s_s- * [$ _18,260,000|$ 18,260,000
| 47 -- TW Distribution trunk in Twp Rd. 240 Phase 3 (fram RRioWatersury | $ - a $ 3,650,000/$ 3,650,000
| Road |
48 |W Part 2 - Distribution Trunk in Raindow Road (.West} Waterford Bludte | $ = hee 1 $ © 3,600,000/$ 3,500,000
TWP 240
| 100 [Unallocated Offsite Levies Collected to Dec 31, 2016 | $ -|S -- Sls. [Gs |
[$ _21,807,667|$ 1,005,400 [$ 123,651,966 |$ 146,465,033
*Costs estimates are reflected in current dollars.
**Estimates include engineering costs and contingencies.
*«*Offsite levy project details, allocations, etc. were determined by City staff and their engineering/consulting
advisors.
****Financing interest costs to date are included in the cost of work completed for Project #2.
***** Project numbering may be out of sequence as rows containing deleted projects are hidden.
Page | 15
City of Chestermere Offsite Levy Rates Update
B2. Water Offsite Infrastructure Grants & Contributions to Date
The MGA enables the City to allocate the costs of offsite infrastructure to future
development, other than those costs that have been provided by way of special grant or
contribution (i.e, contributed infrastructure). The City has/will receive approximately $3.50
million in special grants and contributions for water offsite levy infrastructure as shown in
the table below (note, if the City receives other grants or contributions in the future, it will
be reflected in one of the annual updates and rates adjusted accordingly). The result is that
the total reduced project estimated cost is $142.97 million.
Special Grants and Contributions for Water Offsite Infrastructure
tog = -- Total Project Special Other Reduced Project
ane Preps! Coxe 'Estimated Cost |ProvincialGrants| ASCOMENt | Contributions | Estimated Cost
contributions
1 __ [East Calgary Regional Water Line -Tie-in and Oversizing _(§ 2.426.144) = = 2126. 144 |
| 2 [Water Reservoir Expansion & ECRW Line Tie-IntoReservoir$ 17,029.071|$ 1g50947[$ = SS 15,178,130 |
| 3 NW waterReservoir&Pump StationPhase1 SS 18.330000/$ = fe = 18,330,000 |
| 4 [New Water Supply MainfromCalgay S422 000] SS 4 422.000 |
[5 [Main Pump StationUpgrade S920 25S SS 4.920.258 |
6 [Distrisution Trunkin Chestermere Blvd (North) S14 560440/G TB 14.560,140 |
___7 _ [Distrisution trunk in Rainbow Road (West) Waterford Blvdto(S 3.493826[§ = TS TG 3,493,826 |
|__8 [Distribution tunkin Twp Rd. 240 (South)Phasei |S 1.727.594[6 1g4asa6[S TS 88.998 |
9 |DistributiontrunkinRangeRd. 281 7 oooOO TS 7,700,000]
|__10 [Main Pump Station UpgradePhase2 0D TS GS 2.430.000 |
| 11 [MainPump Station UpgradePhase3_ OOOO TS SS 550,000 |
__12__ [Disiribution trunk in Twp Ra. 240 (South) Phase 2(fromstubls 3.773.000[$ = TS S38. 773,000 |
13_[NWReservoirSupplyain SOOO 4. 560,000 |
| 14 [NWResenoirandPump Station St. 260.000] = BS 48.260,000 |
15__[W? SEResewoir&Pump StationPhasei__---- SS 20.463.000/8 = = = 20,163,000 |
16 [WS SEReseoirandPump StationPhase2__--S18.260.000/$ TS SS 18,260,000 |
17 __|WW14 Distribution trunkin Twp R¢.240Phase3(fromRRtows 3.650.000/5 = [BC = TS 3.650.000 |
18__[¥r9 Part 2 - Distribution Trunk in Rainbow Road West) Waters -3.500.000[$ = |S TS 3,500,000 |
|_100 [Unallocated Offsite Levies CollectedtoDec31,2016 [5 - SB
$ 146,465033/$ 34sgs37[$ SS 142,965,496 |
B3. Water Infrastructure Staging
The timing of construction is used to determine the impact of inflation on cost, the impact
of forecast reserve balances, and the estimate of financial oversizing (described in the
Section that follows). The City anticipates construction of offsite infrastructure as outlined
in the table below. Note, if this schedule is adjusted in the future, it will be reflected in one of
the annual rate/bylaw updates.
Page | 16
City of Chestermere Offsite Levy Rates Update
Water Infrastructure Staging
: Sinz Year of
= Project Description
1 |East Calgary Regional Water Line - Tie-In and Oversizing
2 |Water Reservoir Expansion & ECRW Line Tie-In to Reservoir
3 |NW Water Reservoir & Pump Station Phase 1 2036
__4_ [New Water Supply Main from Calgary
5 |bain Pump Station Upgrade
_6 | Distribution Trunk in Chestermere Bivd (North)
7 |Distribution trunk in Rainbow Road (West) Waterford Blvd to 2023
Chestermere Bid
| 8 |Distribution trunk in Twp Rd. 240 (South) Phase 1 2018
| 9 |Distribution trunk in Range Rd. 281 2036
| 10. {Main Pump Station Upgrade Phase 2 2030:
11 |Main Pump Station Upgrade Phase 3
12 | Distribution trunk in Twp Rd. 240 (South) Phase 2 (from stub to 2045,
| RR281}
13 | NW Reservoir Supply Main 2036 |
14 |NW Reservoir and Pump Station
15 |W7 SE Reservoir & Pump Station Phase 1
16 |W8 SE Reservoir and Pump Station Phase 2
17 |W11 Distribution trunk in Twp Rd. 240 Phase 3 (from RR to
Waterbury Road}
18 |W9 Part 2 - Distribution Trunk in Rainbow Road (West) 2027
Waterford Bivd to TWP 240
*The share of projects beyond the 25-year review period are not included in rates today (see financial oversizing
in next section).
**Costs are inflated to the year of construction using an inflation rate of 3% for the next year, and 3% thereafter.
B4. Water Offsite Infrastructure Benefiting Parties
The water offsite infrastructure previously outlined will benefit various parties to varying
degrees as determined by City staff and engineering advisors. The potential benefiting
parties include:
e City of Chestermere -- that portion of cost which is required to service existing residents.
e Other Stakeholders - other parties (such as neighboring municipalities) that benefit
from the infrastructure.
e City of Chestermere Future Development (Financial Oversizing) - that portion of cost
which benefits future development beyond the 25-year review period.
° City of Chestermere Future Development (in Rates) - all growth-related
infrastructure (i.e. leviable water infrastructure costs) during the 25-year rate
planning period.
The table below outlines the allocation of water offsite levy infrastructure costs to benefiting
parties.
Page | 17
City of Chestermere Offsite Levy Rates Update
Allocation of Water Infrastructure to Benefiting Parties
| Other Developer Share
, a 'Reduced Project F Beyond 25Yis | OSL Developer
Item Project Description Estimated Cost Muni Share % pal (financial Share %
are esy
[ec ie Fh jg --=as ---- fs i aie ae ee Oversizing %
|__1 _ |East Calgary Regional Water Line - Tie4n and Oversizin 1S 2.126.144 0.0% 100.0%
|__ 2 [Waler Reservoir Expansion &ECRWLineTie-ntoResewair S15. 178430 100.0%
|_3 _INWWaterReseroir&PumpStationPhasei CS 18.930.000] a 56.0%
|_4 |NewWaterSupplyMainfromCalgay Satz ODOT OT 24.0%
5 |MainPump StationUpgrade 1920258 se 100.0%
6 {Distribution TrunkinChestermere Blvd(Northy OOP Ce 100.0%
| Chestermere Bivd |
|__8 [Distribution trunkin Twp Rd 240(South}Phase1 Sos Ts 100.0%
|_9 [DistributiontrunkinRangeR@281 0S OOOOOT eh ome 56.0%
10__[Main Pump StationUpgradePhase2_ CS OOOT OH 80.0%
|_11 [Main Pump StationUpgradePhase3_ SOOO Tt 0.0%
|__ 12 [Distribution trunk in Twp Ra. 240 (South} Phase 2 (fromstustoRR281) |S 3.773.000[ 8H 20.0%
13, [NWResewoirSupplyMain CS COOOOT as 56.0%
| 14 |NWResemoirandPump Station St 260000000 0.0%
|_ 15 |W7SEResenoir&Pump StationPhaset S063. 000f 100.0% 0.0%
|_16 [W8SEReseroirandPumpStationPhase2 CS 18260.000T 100% 0.0%
| Road, |
TWP 240 |
|_ 100 [Unallocated Offsite Levies CollectedtoDec34,2016 ST 100.0%
[$ 142,965,496
*Allocations to future development (vs municipal share etc.) were determined by City staff and their
engineering/consulting advisors.
**Financial oversizing is determined by separating out the pro rata portion of developer cost beyond the 25-year
review period, in comparison with the anticipated year of construction. As the years move forward and rates are
updated, these additional developer costs will be included in rate calculations. For example, a project which is
slated to be constructed in year 20 of the 25-year review period will have 20% (5/25) of its costs in rates today,
and 80% (20/25) of its costs will sit beyond the 25-year review period.
BS. Existing Receipts & Adjusted Levy Cost
Using the offsite levy share percentages shown in the previous section and applying those
percentages to project costs results in an offsite levy cost of approximately $64.10 million.
However, prior to allocating these costs to benefiting areas, existing offsite levy receipts
collected from developers need to be considered in determining the residual/net costs to
developers. The City has collected $18.01 million ($7.97 million + $10.04 million) in offsite
levies to date and results in an adjusted offsite levy cost of approximately $46.09 million.
Page | 18
City of Chestermere Offsite Levy Rates Update
Offsite Levy Funds Collected to Date & Adjusted Levy Cost
© Offsite Levy 5
Offsite Levy Adjusted
item Project Description OSL {Developer | bunds Collected leap Developer {Levy}
ree to Dec 31, 2016 omit mts Cost
1__|East Calgary Regional Water Line - Tie-In and Oversizing (8 2.126.144 [$ - |$ 503.109|$ 1,623,035
2 Water Reservoir Expansion & ECRW Line Tie-In to Reservoir .$ 15.178.130 | $ 6,440,676 |] $ 2.067.540 | $ 6.669.914
3__|NW Water Reservoir & Pump Station Phase 1 [S$ 10264900(5 -|[$ 1,547,254
4 __|New Water Supply Main from Calga (S$ 1051280/$9 - [$ 301,033 | 5 760,247
5 __|Main Pump Station Upgrade is 1920258/5 -- - '(3 647.876|$ 1,272,382
6 _|Distribution Trunk in Chestermere Bivd (North) 1S 1455014015 == - [$ 2551547]$ 12,008.593
7 {Distribution trunk in Rainbow Road (West) Waterford Blvd to $ 3,493,826 La) $ 1,468,389/$ 2,025,437
Chestermere Blvd |
8 {Distribution trunk in Twp Rd. 240 (South) Phase 1 [s g8.g98/$ = dS 77,752 | $ 11,246
9 __|Distribution trunk in Range Rd. 281 [S _4312000/5 --=s§s§- ---*Y|$ 145,344 [$4,166,656
10 _|Main Pump Station Upgrade Phase 2 [S$ 1944.000/$ -----_*'[% 303,781|$ 1,640,219
11 ___ [Main Pump Station Upgrade Phase 3 1S = |e |S 33,634
42 |Distribution trunk in Twp Rd. 240 (South) Phase 2 (from stub to RR281} | $ 754500/$ ------ - *[$ 40,702 | $ 713,898
13 __ [NW Reservoir Supply Main [S 2553600/$ - [$ 351.293[$ 2,202,307
14__ [NW Reservoir and Pump Station [s ee Ee ee
15 _|W7 SE Reserair & Pump Station Phase 1 LS 2 | ee Te
16 {W8 SE Reservoir and Pump Station Phase 2 $. 7 eee ee eee
17 {W114 Distribution trunk in Twp Rd. 240 Phase 3 (fromRRto Waterbury |$ 2,628,000 A |) $ 2,628,000
Road
18 |W9 Part 2 - Distribution Trunk in Rainbow Road (West) Waterford Blvdita $ 3,220,000 Ly i $ 3,220,000
TWP 240
100__[Unallocated Offsite Levies Collected to Dec 31, 2016 $ - [$ 1531052[$5 ----_~<([$ 1,531,052
'$64,105,776 |$ 7,971,727
B6. Summary of Water Offsite Levy Cost Flow-through
As shown in the figure below, the total cost for water infrastructure that forms the basis of
the rate is approximately $46.1 million. The cost allocations to each benefitting party are
based on the benefitting percentages shown in Section B4. The offsite levy balance (due
from developers) is allocated to various benefitting areas (as described in the nextsection).
Total Water Offsite Levy Costs
i Future Less: Lev = Off-site
Development iors *
Receipts Balance
(OSL Share) p
18.01M $46.09M
$64.11M $18.
= Future
Development
"Financial
Oversizing"
$78.86M
Project Less: Special I = Project = Other
Gants Grants & Balance Share
$146.47M Contributions $142.97M $0.00M
ee = Existing
Development
(City Share)
$0.00M
Page | 19
City of Chestermere Offsite Levy Rates Update
B7. Water Infrastructure Benefiting Areas
Net developer costs for each project have been allocated to multiple benefiting offsite levy
area (see tables below). Allocations are denoted with a "I" below applicable area numbers.
Benefiting areas were determined by City staff and their engineering advisors. The lands
anticipated to develop over the 25-years in each offsite levy benefitting area are used to
determine rates.
Benefiting Areas for Water Offsite Infrastructure
Description
|_1 East Calgary Regional Water Line - Tie-In and Oversizing | $_1.623,035] T/T T]T {TTP Ty rity Tatty rT ryt] ria
|_2 [Water Reservoir Expansion & ECRW Line Tie-Into Reservor |S 6600914] T/T} T/T{ TTT] v(t [Titi j aii [titi aaa 7
[-3_|NWWater Reservoir & Pump StationPhaset =|" 8717.546(11 111,111] 1,1] 1|1]1]{1[1]1]1] 1] 1] 1|1I\ 1141
[ 4 |New Water Supply Main from Calgary |S e02a7T TTT TTT TT TTT Trt tyra aaa a7
| 5 [Main Pump StationUpgrade ES ee3e2; TT TTP TTT trary yaaa 7
[ 6 [Distribution Trunkin Chestermere Blvd (North) Ss i2,008.sos TT TTT { TTT ey Try air [ tia t [a f a riaria 7
7 istribution t in Rainb Road (West) Wat d Bivd te $ 2,025,437
|" [ekestermare Blvd non noon west Waterord EvdTo |S Bosse TT VET ETPEPTETE TTT
[8 [Distribution trunk in Twp Rd. 240 (SouthyPhaseT TS T1246; TT Tait t rity tyr eri airy a yt ra fT]
[9 _|Distibution frunkinRangeRd. 287 --SSSSS*~*~*dSC"( SC THHO] TV] T] 1] 1{1]7]1]117]1|14]1|1|[1]1|1]1]1\ TIT]
[10 [Main Pump Station Upgrade Phase2 TS 4O.ZTST TTT PTT TT Tyre tyr iti ayaa [afar
[_W [Main Pump Station UpgradePhaseS SRSA TTT TT TTT Ty tyra rata a7
Distribution t i Rd. 240 th) P b to 713,898
| Tezaro unm Two Re 240 (Gout) Phase 2 (romstap ig S$ SOBTT ETT
[13 |[NWReservoirSupplyMain 20207 TTT TT TTT Ty Tatra aaa 7
|_\4|NWReservoirandPump Station TS aaa a a7
|_ 15 |W7 SE Reservoir & Pump StationPhaset TS TTT ara aaa aaa
SS eS a0 Pease rom Re} eee eee ao
id Distnbuti 1 Rd. 240 P RR 2,628,000
| [Walrus nore tee eee
9 Part 2 - Distnbuti in Rai R 3,220,000
| Waterford BivdiotWe 24g nose Wes) |S sec PP PPE PP PPP EEE EE ery
[100 [Unallocated offsite Levies Collected to Dec 3 2016 |S (7.sa7,052) | 1] 1] T/T] 1{ 1] 1] 1] 1] 1] 1] T]1I1] 1/1] V1 1{ I 7]
B8. Reserve Balance
The balance of the City's water reserve at December 31*t, 2024 is -$1.93 M. This updated
balance takes into consideration expenditures up to the end of 2024 and assumes that
front-ending debts will be drawn down via a withdrawal of all available cash in the account.
Water Offsite Levy Reserve Balance
Description Dr Cr Balance
Offsite Levy Expenditures to December 31, 2016 $ 14,803,503.78 as al
Offsite Levy Receipt Allocations to December 31, 2016 $ 6,440,675.57 * $ (8,362,828.21)
Debenture Interest Expenditure to December 31, 2016 $ - $ (8,362,828.21)
Unallocated Receipts to December 31, 2016 $ 1,531,051.62 $ (6,831,776.59)
Opening Balance $ (6,831,776.59)
2017 $ (6,831,776.59)
Interest on Opening Balance $ 204,953.30, $ (7,036,729.89)
Project Expenditures (OSL Share) As Reflected by City $ 210,820.89 ° $ (7,247,550.78)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $ 5,741.00 $ (7,253,291.78)
City
Offsite Levy Receipts $ 203,415.22 $ (7,049,876.56)
ete Levy Receipts Collected Under Old Agreement or Old Bylaw (if $ - $ (7,049,876.56)
any
Debenture Interest Expenditure $ - $ (7,049,876.56)
Interest on Project Expenditure $ 1,624.21 $ (7,051,500.77)
Interest on Offsite Levy Receipts $ 1,017.08 $ (7,050,483.70)
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if $ - $ (7,050,483.70)
Page | 20
City of Chestermere Offsite Levy Rates Update
any)
Interest on Debenture Expenditure $ - -- $ (7,050,483.70)
2018 $ (7,050,483.70)
Interest on Opening Balance $ 218,564.99 $ (7,269,048.69)
Project Expenditures (OSL Share) As Reflected by City : $ 219,168.97 . $ (7,488,217.66)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $ (5,741.01) $ (7,482,476.65)
City
Offsite Levy Receipts $ 432,178.89 $ (7,050,297.76)
ciate Levy Receipts Collected Under Old Agreement or Old Bylaw (if $ = $ (7,050,297.76)
any
Debenture Interest Expenditure $ - $ (7,050,297.76)
Interest on Project Expenditure $ 1,654.07 $ (7,051,951.83)
Interest on Offsite Levy Receipts $ 4,321.79 $ (7,047,630.04)
inierest on Receipts Collected Under Old Agreement or Old Bylaw (if $ - $ (7,047,630.04)
any
Interest on Debenture Expenditure $ - $ (7,047,630.04)
2019 $ (7,047,630.04)
Interest on Opening Balance $ 218,476.53 $ (7,266,106.57)
Project Expenditures (OSL Share) As Reflected by City : $ 201,952.99 $
(7,468,059.56)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $ (0.99 $ (7,468,058.57)
City :
)
Offsite Levy Receipts $ 299,903.32 $ (7,168,155.25)
aoe Levy Receipts Collected Under Old Agreement or Old Bylaw (if $ - $ (7,168,155.25)
any
Debenture Interest Expenditure $ = $ (7,168,155.25)
Interest on Project Expenditure $ 1565.13 -- $ (7,169,720.38)
Interest on Offsite Levy Receipts $ 2,999.03 $ (7,166,721.34)
ee on Receipts Collected Under Old Agreement or Old Bylaw (if $ - $ (7,166,721.34)
any
Interest on Debenture Expenditure $ = $ (7,166,721.34)
Page | 21
City of Chestermere Offsite Levy Rates Update
2020 $(7,166,721.34)
Interest on Opening Balance $222,168.36 $(7,388,889.71)
Project Expenditures (OSL Share) As Reflected by City $276,243.43 $(7,665,133.14)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $ (1,943.43) $(7,663,189.71)
City
Offsite Levy Receipts $155,887.63 $(7,507,302.08)
war Levy Receipts Collected Under Old Agreement or Old Bylaw (if $ = $(7,507,302.08)
Interest on Project Expenditure $2,125.83 $(7,509,427.90)
Interest on Offsite Levy Receipts $1,558.88 $(7,507,869.02)
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if $ = $(7,507,869.02)
any) 4
2021 $ (7,507,869.02)
Interest on Opening Balance $ 195,204.59 $ (7,703,073.62)
Project Expenditures (OSL Share) As Reflected by City $ 191,409.16 $ (7,894,482.78)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By
City $ (0.16) $ (7,894,482.62)
Offsite Levy Receipts $ 478,703.93 $ (7,415,778.69)
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if
any) $ - $(7,415,778.69)
Interest on Project Expenditure $ 1244.16 -- $ 7,417,022.85)
Interest on Offsite Levy Receipts $ 2,393.52 $(7,414,629.33)
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if
any) $ = $(7,414,629.33)
2022 $ (7,414,629.33)
Interest on Opening Balance $ 387,377.19 $(7,802,006.52)
Project Expenditures (OSL Share) As Reflected by City $ 169,871.00 $(7,971,877.52)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By
City $ - $(7,971,877.52)
Offsite Levy Receipts $ 2,321,590.50 $(5,650,287.02)
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if
any) $(5,650,287.02)
Interest on Project Expenditure $ 2,216.82 $(5,652,503.84)
Interest on Offsite Levy Receipts $ 23,215.91 $(5,629,287.93)
interest on Receipts Collected Under Old Agreement or Old Bylaw (if
Cl) es $(5,629,287.93)
2023 $(5,629,287.93)
Interest on Opening Balance $ 281,534.67 _ $(5,910,822.60)
Project Expenditures (OSL Share) As Reflected by City $ 1,601,118.94 -- $(7,511,941.54)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $ $(7,511,941.54)
City eT
Offsite Levy Receipts $ 2,935,491.40 $(4,576,450.14)
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if $(4,576,450.14)
any)
Interest on Project Expenditure $ 2,081.30 $(4,578,531.44)
Interest on Offsite Levy Receipts $ 29,354.91 $(4,549,176.53)
aa on Receipts Collected Under Old Agreement or Old Bylaw (if $(4,549,176.53)
any
2024 $_ (4,555,566.07)
Interest on Opening Balance $ 229,600.53 $ (4,785,166.60)
Project Expenditures (OSL Share) As Reflected by City $381,725.337 $ (5,166,891.97)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By
City $ -__$ (5,166,891.97)
Offsite Levy Receipts $_3,212,083.30 $__(1,954,808.67)
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if
any) $ (1,954,808.67)
Interest on Project Expenditure $4809.74 $ (1,959,618.41)
Interest on Offsite Levy Receipts $ 32,120.83 $ _(1,927,497.58
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if
any) $_(1,927,497.58)
Page | 22
City of Chestermere Offsite Levy Rates Update
B9. Development and Water Infrastructure Staging Impacts
Water offsite infrastructure will be constructed in staged fashion over the 25-year review
period. We have reviewed the availability of offsite levy funds to meet these construction
requirements and found that offsite levy reserve funds will not be sufficient to pay for
construction of water infrastructure from time to time--front ending of infrastructure will be
required. A front-ender is the party that constructs and pays up front for infrastructure that
benefits other parties. The front-ender (be it a municipality or a developer) is reimbursed
over time as levies are collected, and in accordance with the municipality's front-ending
repayment policies.
To compensate parties for capital they provide in front-ending offsite infrastructure
construction, a 5.04% interest allowance has been charged to the reserve when it is
forecast to be in a negative balance. Further, a 2.00% interest credit has been provided to
the reserve when it is forecast to be in a positive balance. The graph and table below outline
the forecast water levy reserve balances over the 25-year development period.
if necessary, an interest staging adjustment has been applied to rates (slightly positive or
slightly negative) to ensure that the forecast reserve balance at the end of the 25-year
review period always returns to break-even (i.e., developers are not charged too much
thereby providing a windfall to the City, nor are they charged too little thereby placing an
unequitable burden on taxpayers)
Anticipated Water Offsite Levy Reserve Balances*
Water Reserve
$10,000,000
--¢-- Reserve
$5,000,000 aS Balance
$(10,000,000) \ 9"
$(15,000,000) ae
Year
Page | 23
City of Chestermere Offsite Levy Rates Update
Anticipated Water Offsite Levy Reserve Balances
Opening Balance
Year Receipts Expenditure Interest Balance
2025 $ 5,369,885 $ 3,660,155 $ (10,976) $ (228,744)
2026 $ 3,286,254 $ 1,609,129 $ 28,968 $ 1,477,349
2027 $ 3,273,931 $ 5,073,501 $ (16,240) $ (338,461)
2028 $ 5,591,993 $ 1,673,954 $ 71,592 $ 3,651,170
2029 $ 3,882,513 $1,724,172 $ 116,190 $ 5,925,701
2030 $ 2,621,308 $ 2,885,116 $ 113,238 $ 5,775,131
2031 $ 1,266,392 $ 7,491,917 $ (22,700) $ (473,094)
2032 $ 946,610 $ 3,288,110 $ (141,856) $ (2,956,450)
2033 $ 1,842,535 § 57,682 $ (59,048) $ (1,230,645)
2034 $ 2,672,751 $ 39,608 $ 28,050 $ 1,430,547
2035 $ 1,862,710 $ 40,796 $ 65,049 $ 3,317,510
2036 $ 1,749,970 $ ~---9,489,723 $ (222,881) $ (4,645,125)
2037 $ 2,116,993 $ 9,774,415 $ (620,048) $ (12,922,595)
2038 $ 2,180,503 § 633,232 $ (573,316) $ (11,948,640)
2039 $ 1,787,568 $ 652,229 $ (544,990) $ (11,358,291)
2040 $ 2,785,397 = $ 671,796 $ (465,932) $ (9,710,622)
2041 $ 2,334,068 §$ 691,949 $ (406,653) $ (8,475,156)
2042 $ 3,015,130 = $ 712,708 $ (311,106) $ (6,483,840)
2043 $ 1,880,890 $ 734,089 $ (268,987) $ (5,606,025)
2044 $ 2,383,654 § 1,686,592 $ (247,412) $ (5,156,375)
2045 $ 1,613,425 = $ ~--- 1,639,841 $ (261,213) $ (5,444,004)
2046 $ 2,024,859 = § 701,889 $ (207,700) $ (4,328,734)
2047 $ 1,740,714 $ - $ (130,436) $ (2,718,457)
2048 $ 1,196,087 § 7 $ (76,727) $ (1,599,097)
2049 $ 1,599,097 $ - $ (0) $ (0)
4In determining staging adjustments, the offsite levy model also applies inflation to future rates. In so
doing it acknowledges that rates must keep pace with inflation just as costs do. Also, it acknowledges
that an offsite levy rate of $X paid today is not worth the same as the equivalent $X rate paid in the
future (i.e, it is discounted).
Page | 24
City of Chestermere Offsite Levy Rates Update
APPENDIX C: SANITARY OFFSITE INFRASTRUCTURE
Cl. Sanitary Offsite Infrastructure Costs
To support future growth, sanitary offsite infrastructure is required. The estimated cost of
this infrastructure is based upon: (a) actual construction costs to the cut-off date, (b)
debenture interest associated with financing, and (c) future cost estimates. Total cost is
approximately $143.26 million as outlined in the table below. Actual costs, debenture
interest (if any), and cost estimates were provided by City staff. it is important to note that
these costs represent "gross" costs, of which only a portion will go to support future
development during the 25-year review period. The remainder of this section outlines how
the "net" costs for future development are determined.
Summary of Sanitary Offsite Infrastructure
Cost of
Future Estimated Cost of A
Item Project Description Capiered rors Debenture Work Yet to be ee ie care
& Historical interest Co. ted Estimated Cost
Interest ? me
1 Lift Station #13 | $ 14,634,094 " 41,788,82613 - |& -- 16.422,920
2 Lift Station #13 Forcemain $ 10.024.604 | $ 1,272,151 $ 41,296.755
3 Great Plains Sanitary Trunk ls 7,181,570 | $ 2e8.a57{S --s -_~=«&4dS 7.470,427
4 Rainbow Road Gravity Sewer Trunk Phase 1 $ 7,781.181 | $ 928,120 $ 8,709,301
5 Rainbow Road Gravity Sewer Trunk Phase 2 [$ 134.056/5 = -_~<&([ 10.896.536 | $ 11.030.592
6 Lift Station #14 Phase 1 | $ 9088/$ - {[$ 4.200.000 | $ 4.209.088
7 Lift Station #14 Forcemain [| $ 1.038.927(/6 - [$ - [$ 1.038.927
8 Lift Station #13 - Pump Upgrade 4 | $ - (= 2 1s 4.390.000 | $ 1,390,000
9 Rainbow Road Gravity Sewer Trunk Phase 3 | $ -|S = IS 9.550.000 | $ 9.550.000
10 Rainbow Road Gravity Sewer Trunk Phase 4 | $ - | Teas 918.074 | $ 918.074
11 Lift Station #10 to LS #13 & H2S System Upgrade L$ 1,309.381[/6 =§- [$ £- 'C[$ 1,309,381
42 __|Lift Station #14 Phase 2 | $ a ee E: 7,029,000 | $ 7,029,000
13 [New Discharge Forcemain to Calgary | §$ -[$ ss - 7S 214,483,000 1S 21,483,000
14 [S5 Rainbow Road Gravity Sewer Trunk Phase 5 | $ 4 2a EE: 3,894,000 | $ 3,894,000
15 _|Lift Station #10 Decommissioning | $ 2 | See: 3.322.000 | $ 3,322,000
16 _ [East Acreages Interim Lift Station iz -[s ss = [8 3,740,000 | $ 3,740,000
17__ [East Chestermere Gravity Trunk Line i: + [es | 10,780,000|$ 10,780,000
18 __|Lift Station 13 Twinning | $ -[$ ss - =fS ----13.2565.000]$ --_---13.255,000
19 _|Lift Station #14 Forcemain Twinning | $ -[$ - [8 5.819.000 | $ 5,819,000
20 __ [Lift Station #10 to Discharge #2 Modifications | $ ~|$ --. 2 |[§ 590.000 | $ 90,000
100 [Unallocated Offsite Levies Collected to Dec 31,2016 | $ 8 a ee |:
i} 42,112,901 | $ 4,277 954 | $ 96,866,610 |$ 143,257,465
*Costs estimates are reflected in current dollars.
**Estimates include engineering costs and contingencies.
***Offsite levy project details, allocations, etc. were determined by City staff and their engineering/consulting
advisors.
****Financing interest costs to date are included in the cost of work completed for Projects #1, #2, #3, and #4.
***** Project numbering may be out of sequence as rows containing deleted projects are hidden.
Page | 25
City of Chestermere Offsite Levy Rates Update
C2. Sanitary Offsite Infrastructure Grants & Contributions to Date
The MGA enables the City to allocate the costs of offsite infrastructure to future
development, other than those costs that have been provided by way of special grant or
contribution (i.e. contributed infrastructure). The City has/will receive $4.40 million in
special grants and contributions ($3.30 million + $1.10 million) for sanitary offsite levy
infrastructure as shown in the table below (note, if the City receives additional grants or
contributions in the future, it will be reflected in one of the annual updates and rates
adjusted accordingly). The result is that the total reduced project estimated cost is $138.86
million.
Special Grants and Contributions for Sanitary Offsite Infrastructure
Developer
' a ach Total Project Other Reduced Project
nem Prapect Sete Estimated Cost | SPecial Grants Bid ero Contributions | Estimated Cost
| i
i Lift Station #13 rr | Se | Ss | Es
| 2 Lift Station #13 Forcemain Is 11,286,755 | $ 22647015 _« [g sa {$ 9,034,974
a Great Plains Sanitary Trunk $ 74704o7 (a Siig 1,100,000) $ 6,370,427
| 4 Rainbow Road Gravity Sewer Trunk Phase 1 [$s 870950 |(% se J ee ee is 8.709.301
[5 Rainbow Road Gravity Sewer Trunk Phase 2 Is 11,030592($ - [§ jj- [§ --- [S$ 11,030,592
[6 Lift Station #14 Phase 1 iB Pe Sir ie ee 4.208.088
[7 Lift Station #14 Forcemain ls 1,038,927 | ¢ '0974 |S GS 884 |
| 8 Lift Station #13 - Pump Upgrade 1 1s 1,390,000 |G Ss I a ee NS 1,390,000
| 3 Rainbow Road Gravity Sewer Trunk Phase 3 1S 95500006 Se i eS 9.550.000
| 10 Rainbow Road Gravity Sewer Trunk Phase 4 Ls 918.07 |S «= iis cm IS. 2 = IS 918.074
| 11 _|Lift Station #10 to LS #13 & H2S System Upgrade [$s 1.309301(/% st Se Ge 1,308.381
|12 _|Lift Station #14 Phase 2 [$s A ee | a ES 7,029.000
[43 [New Discharge Forcemain to Calga [Ss _-21483000(8. = = |e eR St 000
____14__|S5 Rainbow Road Gravity Sewer Trunk Phase 5 [$s 3.094.000/$ = | «= {8 °° °&2}- 4s 3.894.000
("15 __ [Lift Station #10 Decommissioning [s 3.322000/$ - (S$ Ge 3.322.000
16 East Acreages Interim Lift Station iE 3.740,000)%. = Se eS 3.740.000
| 17 East Chestermere Gravity Trunk Line ES 10,780,000 |S -- SB iss RY = = eS 10,780,000
| 18 Lift Station 13 Twinning [S$ 13,265,000/8 = |@ = [8 == ]$ 13,255,000
19 _[Lift Station #14 Forcemain Twinning i$ 5ai9000($ == |$§ j.- [Gf = ''({$ 5,819,000
20 _|Lift Station #10 to Discharge #2 Modifications [$ ssood(S $= - [§ - {f§ °° &2»-- 1[§ 590,000
100 _ [Unallocated Offsite Levies Collected to Dee 31, 2016 $ - [TiS Ss Sti
| [$__ 143,257,465 | $ 3299274|$ = TS 1,100,000 |$ 138,858,191
*The contribution of $1.10 million for Project #3 was provided by the City of Calgary.
C3. Sanitary Infrastructure Staging
The timing of construction is used to determine the impact of inflation on cost, the impact
of forecast reserve balances, and the estimate of financial oversizing (described in the
section that follows). The City anticipates construction of offsite infrastructure as outlined
in the table below. Note, if this schedule is adjusted in the future, it will be reflected in one of
the annual rate/bylaw updates.
Page | 26
City of Chestermere Offsite Levy Rates Update
Sanitary Infrastructure Staging
ite z 258 Year of
: Project Description
| 1_|Lift Station #13 2015
_ 2 {Lift Station #13 Forcemain 2017
| 3 |Great Plains Sanitary Trunk 2016
4 |Rainbow Road Gravity Sewer Trunk Phase 1 2017
__5 |Rainbow Road Gravity Sewer Trunk Phase 2 2019 4
| 6 {Lift Station #14 Phase 1 2030
__?_|Lift Station #14 Forcemain 2020
| 8 |Lift Station #13 - Pump Upgrade 1 2030
3 _|Rainbow Road Gravity Sewer Trunk Phase 3 2034
10 |Rainbow Road Gravity Sewer Trunk Phase 4 2024
| 11 |Lift Station #10 to LS #13 & H2S System Upgrade 2023
12 {Lift Station #14 Phase 2 2055
13 |New Discharge Forcemain to Calgary 2059
_14 [$5 Rainbow Road Gravity Sewer Trunk Phase 5 2047
15 [Lift Station #10 Decommissioning 2060
16 |East Acreages Interim Lift Station
17 |East Chestermere Gravity Trunk Line
18 |Lift Station 13 Twinning
19 |Lift Station #14 Forcemain Twinnin 2055
20 |Lift Station #10 to Discharge #2 Modifications 2039
*The share of projects beyond the 25-year review period are not included in rates today (see financial oversizing
in next section).
**Costs are inflated to the year of construction using an inflation rate of 3% for the next year, and 3% thereafter.
C4. Sanitary Offsite Infrastructure Benefiting Parties
The sanitary offsite infrastructure previously outlined will benefit various parties to varying
degrees as determined by City staff and engineering advisors. The potential benefiting
parties include:
e City of Chestermere -- that portion of cost which is required to service existing
residents.
e Other Stakeholders - other parties (such as neighboring municipalities) that benefit
from the infrastructure.
e City of Chestermere Future Development (Financial Oversizing) - that portion of cost
which benefits future development beyond the 25-year review period.
e City of Chestermere Future Development (in Rates) - all growth-related
infrastructure (i.e,, leviable sanitary infrastructure costs) during the 25-year rate
planning period.
Page | 27
City of Chestermere Offsite Levy Rates Update
The table below outlines the allocation of sanitary offsite levy infrastructure costs to
benefiting parties.
Allocation of Sanitary Infrastructure to Benefiting Parties
Other Developer Share
or Reduced Project 5 Beyond 25 Yrs | OSL / Developer
Item Project Description | 'Estimated Cust Muni Share % pr 9 pa (Financial Share %
/ Oversizing %)
| 1 Lift Station #13 $ 16,422,920 20.0% 80.0%
| 2 Lift Station #13 Forcemain I$ 9034974] 200% [| | 00% | 80.0%
| 3 Great Plains Sanitary Trunk 1s 6370427[ 100.0%
4 Rainbow Road Gravity Sewer Trunk Phase 1 I$ 8,709301/ gone =| 80.0%
5 Rainbow Road Gravity Sewer Trunk Phase 2 $ 17,030;592)| So Ll ew el. ee 100.0%
6 Lift Station #14 Phase 1 iB 4909008" Renan Vn ee es ae 20.0% 80.0%
a: Lift Station #14 Forcemain [$ 1:434\ |e eel me ORR 100.0%
38 Lift Station #13 - Pump Upgrade 1 I$ 1:390;000 |=" 20.0% 80.0%
9 Rainbow Road Gravity Sewer Trunk Phase 3 L$ 9650,000 |) 36.0% 64.0%
| 10 Rainbow Road Gravity Sewer Trunk Phase 4 {S$ gigo74f Cdr CTH 100.0%
11 Lift Station #10 to LS #13 & H2S System Upgrade [$ 1309381 (> CO ee | 100.0%
____12 __ [Lift Station #14 Phase 2 [s 7o2go00{ | CCT 100.0%
13 __|New Discharge Forcemain to Calga! 1S a21-489:000i|| coat ae iol en 0 100.0%
14 $5 Rainbow Road Gravity Sewer Trunk Phase 5 [$s 3994000 | => Le | 88.0% 12.0%
15 _|Lift Station #10 Decommissioning I$ ee eS es 100.0%
16 _|East Acreages Interim Lift Station [$ 3740000; =f | 80% | 92.0%
|___17___|East Chestermere Gravity Trunk Line L$ 101780000 | Ean ie ee we 60.0% 40.0%
|__18 Lift Station 13 Twinning ER) ar ae
19 __ [Lift Station #14 Forcemain Twinning Is 5319000 (5. eal iusto. 0 al 100.0%
| 20 _|Lift Station #10 to Discharge #2 Modifications E £90000) |C-- aee E e l 56.0%
| _100 [Unallocated Offsite Levies Collected to Dec 31,2016 |S 2 eS SS ee oe 100.0%
($ 138,858,191
*Allocations to future development (vs municipal share etc.) were determined by City staff and their
engineering/consulting advisors.
**Financial oversizing is determined by separating out the pro rata portion of developer cost beyond the 25-year
review period, in comparison with the anticipated year of construction. As the years move forward and rates are
updated, these additional developer costs will be included in rate calculations. For example, a project which is
slated to be constructed in year 20 of the 25-year review period will have 20% (5/25) of its costs in rates today,
and 80% (20/25) of its costs will sit beyond the 25-year review period.
C5. Existing Receipts & Adjusted Levy Cost
Using the offsite levy share percentages shown in the previous section and applying those
percentages to project costs results in an offsite levy cost of approximately $66.03 million.
However, prior to allocating these costs to benefiting areas, existing offsite levy receipts
collected from developers need to be considered in determining the residual/net costs to
developers. The City has collected $13.10 million ($6.69 million + $6.41 million) in offsite
levies to date and results in an adjusted offsite levy cost of approximately $52.93 million.
Page | 28
City of Chestermere Offsite Levy Rates Update
Offsite Levy Funds Collected to Date & Adjusted Levy Cost
; 4 Offsite Levy :
Offsite Levy Adjusted
Item Project Description roa eee leper Funds Collected sta Eaten Developer (Levy}
ing Jan 1,
to Dec 31, 2016 2917 Cost
1 Lift Station #13 _ S _13.138,336|[$ _--_---2,724,818 | $ 1,918.696 | $ 8,494,822
2 Lift Station #13 Forcemain I$ 7,227,979 | $ 240,241 | $ 1,277,607 | $ 5.710.131
3 Great Plains Sanitary Trunk I$ 6,370,427 | $ 3,379,289 | $ 550.997 | § 2,440,141
4 Rainbow Road Gravity Sewer Trunk Phase 1 I$ 6,967,441 | $ 347,258 | § 1,158,589 | § 5.461.594
| 5 Rainbow Road Gravity Sewer Trunk Phase 2 is 11,030.592/$ = = =--- ~=<[Ss 619.276 [$ _10.411.315
| 6 Lift Station #14 Phase 1 $ 3.367.271 (ga es ts CS 3.367.271
7 Lift Station #14 Forcemain Is 1434/$ | YS 1,289 | $ 145
3 Lift Station #13 - Pump Upgrade 1 iS 1,112000/$ = - |$ 121,610 | $ 990.390
9 Rainbow Road Gravity Sewer Trunk Phase 3 $ 6.112000/$ = - I$ 279,687 | $ § 832,313
| 10 Rainbow Road Gravity Sewer Trunk Phase 4 is 918.074/$ - [§ - [$ 918,074
11 Lit Station #10 to LS #13 & H2S System Upgrade IS 1309381/$ ss - ~*'[$ 307,403 [$ 1,001.978
12 _ [Lift Station #14 Phase 2 iS - |g -[s - [Ss - |
| 13 __ [New Discharge Forcemain to Calga Is - [so - fs Ss
14 __|S5 Rainbow Road Gravity Sewer Trunk Phase 5 is 467,280/$ =- |S - [$ 467,280
[45 _ [Lift Station #10 Decommissioning i$ on. [ee en ees 173,542 | $ 173,542
| 16 East Acreages Interim Lift Station IS 3440300/$ =- [S$ - f$ 3.440.800
17 East Chestermere Gravity Trunk Line $ 4312000/$ - {[$ - [$ 4.312.000
___18__|Lift Station 13 Twinning [s Sa a
49 Lift Station #14 Forcemain Twinning IS - bess - (& - |
| 20 _|Lift Station #10 to Discharge #2 Modifications iS 259.600(/$ - [|S - |§ 259.600
100 [Unallocated Offsite Levies Collected to Dec 31.2016 |S .
$66,034,615 | $ 6,691,606 [$ 6,408,696 |$ 52,934,313
6. Summary of Sanitary Offsite Levy Cost Flow-through
As shown in the figure below, the total costs for sanitary infrastructure that forms the basis
of the rate is approximately $52.9 million. The cost allocations to each benefitting party are
based on the benefitting percentages shown in Section C4. The offsite levy balance (due
from developers) is allocated to various benefitting areas (as described in the next
section).
Total Sanitary Offsite Levy Costs
= Future
Less: Le' = -G}
Development ree, Off-site
ma =Receipts Balance*
(OSL Share) $13.10M §52.93M
$66.03M :
= Future
Development
"Financial
Oversizing"
$65.99M
Project Less: Special = Project = Other
Costs Grants & Balance shale
$143.26M Contributions £138.86M $0.00M
$4.40M _
= Existing
Developmen
(City Share)
$6.83M
Page | 29
City of Chestermere Offsite Levy Rates Update
C7. Sanitary Infrastructure Benefiting Areas
Net developer costs for each project have been allocated to multiple benefiting offsite levy
area (see tables below). Allocations are denoted with a "1" below applicable area numbers.
Benefiting areas were determined by City staff. The lands anticipated to develop over the
25-years in each offsite levy benefitting area are used to determine rates.
Benefiting Areas for Sanitary Offsite Infrastructure
pers] troetoencnpnion | Paes | Lal s| a[ |e] >] s] sol of e{alalsle|o|= [oll "|"|
| I [litStation#1s BOs B22 TT aT aT Tat Tata aati at at ay ay ap ata aati [ |
| 2 [lit Station#13Forcemain TS 5 rt0A3T Tata Tat raft fat ay aati sats t ay at apa at [4
| 3 [Great Plains Sanitary Trunk 2404 Tat at tatty at at ata tata ata tt af apa aa] 1] 1]
[4 [Rainbow Road Graviy SewerTrunkPhase T [Ss saorsee eta Tattiat PT | fast telstra at TTT fa
[8 [Rainbow Road GraviySewerTrunkPhaseZ [Ss woartarel Talat Tt | | tia | fat [eta [iat fat
Pe lomsatonwaPraset Ss sare a PP re a
D7 [orestaton Fra Foreeman ea
| 8 [LiftStation#13-PumpUpgradet | $990,300 aT ata tpatriatsat stat at at atat sy af apa t4 [af 11
[8 [Rainbow Road Graviy SewerTrunkPhaseS Ps semzars Ta TT PT Pr at Pt a at ia
[ 10" [Rainbow Road GraviySewertronkPhase® PS oreo aT TT TT PT | at | tat ia a
|_1 [Lift Station #10 to LS #13 & H2S System Upgrade| $1,001.97} 1[ aa ttat [at To fatatatatayay af at fat [41] 1]
a Eteaeneerhases De eae ee a
[13 [New Discharge ForcemantoCaway Sa fa tata fa ia] sata fade faa fa
[1 |S8 Rainbow Road Graviy Sewer TrunkPhases |S werzeo Tat TTT TT TP ry apy PP ty
[TE [Ee Staon FiO Decommssionng TS rman a a ae a
[16 Fetacmesinerin isin) Ss ee ae
[1 East Chestennais GramiyTomktins" |S aaa TTT a a Py a
18 [Staion tS Twineing 0 ly a a ag ag oe 4 |
een Fae tng me ee a Pe ay
[20 [Lit Staton FIO Discharge FZMoaReations [Ss aseeeo Tatra tata aise f tia] s [tat [staat alta
Li ci RM a
C8. Reserve Balance
The balance of the City's sanitary reserve at December 31*, 2024 is -$34,753,918.80. This
updated balance takes into consideration expenditures up to end-2024 and assumes that
front-ending debts will be drawn down via a withdrawal of all available cash in the account.
Sanitary Offsite Levy Reserve Balance
Description Dr Cr Balance
Offsite Levy Expenditures to December 31, 2016 $ 15,968,042.91 $ (15,968,042.91)
Offsite Levy Receipt Allocations to December 31, 2016 $ 405,561.30 $ (15,562,481.61)
Debenture Interest Expenditure to December 31, 2016 $ 2 $ (15,562,481.61)
Unallocated Receipts to December 31, 2016 $ = $ (15,562,481.61)
Opening Balance $ (15,562,481.61)
2017 $ (15,562,481.61)
Interest on Opening Balance $ 466,874.45 $ (16,029,356.06)
Project Expenditures (OSL Share) As Reflected by City $ 8,289,228.79 $ (24,318,584.85)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $ (1.31) $ (24,318,583.54)
ity
Offsite Levy Receipts $ 52,496.69 $ (24,266,086.85)
onsve Levy Receipts Collected Under Old Agreement or Old Bylaw (if $ - $ (24,266,086.85)
any
Debenture Interest Expenditure $ - $ (24,266,086.85)
Interest on Project Expenditure $ 62,169.21 $ (24,328,256.05)
Interest on Offsite Levy Receipts $ 262.48 $ (24,327,993.57)
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if $ = $ (24,327,993.57)
Page | 30
City of Chestermere Offsite Levy Rates Update
any)
Interest on Debenture Expenditure $ = $ (24,327,993.57)
2018 $ (24,327,993.57)
Interest on Opening Balance $ 754,167.80 $ (25,082,161.37)
Project Expenditures (OSL Share) As Reflected by City . $ 4,746,247.66 $ (29,828,409.03)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $ 180 $ (29,828,410.83)
City
Offsite Levy Receipts $ 252,507.40 $ (29,575,903.43)
ore Levy Receipts Collected Under Old Agreement or Old Bylaw (if $ = $ (29,575,903.43)
any
Debenture Interest Expenditure $ - $ (29,575,903.43)
Interest on Project Expenditure $ 36,783.43 $ (29,612,686.87)
Interest on Offsite Levy Receipts $ 2,525.07 $ (29,610,161.79)
el on Receipts Collected Under Old Agreement or Old Bylaw (if $ = $ (29,610,161.79)
any,
Interest on Debenture Expenditure $ fr $ (29,610,161.79) .
2019 $ (29,610,161.79)
Interest on Opening Balance $ 917,915.02 $ (30,528,076.81)
Project Expenditures (OSL Share) As Reflected by City : $ 703,441.26 $ (31,231,518.07)
Ll Project Expenditures (OSL Share) In Addition to Amount Reflected By $ (112) -- $ (31,231,516.94)
ity
Offsite Levy Receipts $ 207,904.86 $ (31,023,612.08)
Eas Levy Receipts Collected Under Old Agreement or Old Bylaw (if $ = $ (31,023,612.08)
any
Debenture Interest Expenditure $ = $ (31,023,612.0B)
Interest on Project Expenditure $ 5,451.66 = $ (31,029,063.75)
Interest on Offsite Levy Receipts $ 2,079.05 $ (31,026,984.70)
et on Receipts Collected Under Old Agreement or Old Bylaw (if $ = $ (31,026,984.70) .
any
Interest on Debenture Expenditure $ - $ (31,026,984.70)
2020 $(31,026,984.70)
Interest on Opening Balance $961,836.53 $(31,988,821.22)
Project Expenditures (OSL Share) As Reflected by City $1,135,902.86 $(33,124,724.08)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $(0.95) $(33,124,723.13)
City
Offsite Levy Receipts $476,101.53 $(32,648,621.60)
os Levy Receipts Collected Under Old Agreement or Old Bylaw (if $- $(32,648,621.60)
any .
Interest on Project Expenditure $B,803.24 $(32,657,424.84)
Interest on Offsite Levy Receipts $4,761.02 $(32,652,663.83)
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if $- $(32,652,663.83)
ony)
2021 $ (32,652,663.83)
Interest on Opening Balance $848,969.26 $ (33,501,633.09)
Project Expenditures (OSL Share) As Reflected by City $669,320.91 $ (34,170,954.00)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $259.84
City $ (34,171,213.84)
Offsite Levy Receipts $426,254.36 $ (33,744,959.48)
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if $-
any) $ (33,744,959.48)
Interest on Project Expenditure $ 6,150.85 $ (33,751,110.34)
Interest on Offsite Levy Receipts $ (33,751,110.34)
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if $-
can) $_(33,751,110.34)
2022 $ (33,751,110.34)
Interest on Opening Balance $1,761,B07.96 $ (35,512,918.30)
Project Expenditures (OSL Share) As Reflected by City $266,953.37 $ (35,779,871.67)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By
City $ (35,779,871.67)
Offsite Levy Receipts $562,526.02 $ (35,217,345.65)
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if
any) $ (35,217,345.65)
Interest on Project Expenditure } $3,483.74 $ (35,220,829.39)
Interest on Offsite Levy Receipts $5,625.26 $ (35,215,204.13)
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if
any) $_(35,215,204.13)
Page | 31
City of Chestermere Offsite Levy Rates Update
-- $ (35,215,204.13)
Interest on Opening Balance $ 1,418,069.99 $ (36,633,274.12)
Project Expenditures (OSL Share) As Reflected by City $ 88,372.96 $ (36,721,647.08)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected by
City $ (36,721,647.08)
Offsite Levy Receipts $ 1,599,301.87
$ (35,122,345.21)
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if
one $ (35,122,345.21)
interest on Project Expenditure $ 3,240.99
$ (35,125,586.20)
interest on Offsite Levy Receipts $ 15,993.02
$ (35,109,593.18)
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if
any) $ (35,109,593.18)
2024 $ (35,109,593.18)
Interest on Opening Balance $ 1,769,523.50 $ (36,879,116.68)
Project Expenditures (OSL Share) As Reflected by City $ 725,578.68 $ (37,604,695.36)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected by
City _ . $ (37,604,695.36)
Offsite Levy Receipts ; ; $ 2,831,602.82 $ (34,773,092.54)
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if ¥
any) $ (34,773,092.54)
Interest on Project Expenditure » 9,142.29 $ (34,782,234.83)
Interest on Offsite Levy Receipts $ 28,316.03 $ (34,753,918.80)
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if
any\ $ (34,753,918.80)
C9. Development and Sanitary Infrastructure Staging Impacts
Sanitary offsite infrastructure will be constructed in staged fashion over the 25-year
development period. We have reviewed the availability of offsite levy funds to meet these
construction requirements and found that offsite levy reserve funds will not be sufficient to
pay for construction of sanitary infrastructure from time to time--front ending of
infrastructure will be required. A front-ender is the party that constructs and pays up front
for infrastructure that benefits other parties. The front-ender (be it a municipality or a
developer) is reimbursed over time as levies are collected, and in accordance with the
municipality's front-ending repayment policies.
To compensate parties for capital they provide in front-ending offsite infrastructure
construction, a 5.04% interest allowance has been charged to the reserve when it is
forecast to be in a negative balance. Further, a 2.00% interest credit has been provided to
the reserve when it is forecast to be in a positive balance. The graph and table below outline
the forecast sanitary levy reserve balances over the 25-year development period.
If necessary, an interest staging adjustment has been applied to rates (slightly positive or
slightly negative) to ensure that the forecast reserve balance at the end of the 25-year
review period always returns to break-even (i.e, developers are not charged too much
thereby providing a windfall to the City, nor are they charged too little thereby placing an
unequitable burden on taxpayers).
Page | 32
City of Chestermere Offsite Levy Rates Update
Anticipated Sanitary Offsite Levy Reserve Balances®
Sanitary Reserve
$- .
$(5,000,000) 3--s-- ves
vosamnooy | ge
$(15,000,000)
° $(20,000,000) [Sy 4 eo A Ww
$(35,000,000) e
Year :
Anticipated Sanitary Offsite Levy Reserve Balances
Opening Balance | $ (34,753.919}|
Year Receipts Expenditure Interest Balance
2025 $ 6,201,342 $ 1,197,858 $ (1,499,422) $ (31,249 857}
2026 $ 4137450 $ 273,556 $ (1,380,252) $ (28,766,205)
2027 & 4179694 $ 3.924716 §$ (1,436,966) $ (29,948,193)
2028 & 8,640,624 $G$ 274704 § (1,087,746) $ (22,670,009)
2029 % 5892770 § 266,968 $ (859,028) $ (17, 903,235}
2030 $ 3,850,481 $ 5451223 $ (982,000) $ (20,486,977)
2031 $ 2,051,593 $ 266,276 $ (942564) 5 (19,644,224)
2032 $ 1,361,638 $ 256806 $ (934,385) $ (19,473,778)
2033 $ 2,451,785 $ 246528 $ (870,333) $ (18,138,854)
2034 $ 3,972,173 $ 8228697 §$ (1,128,727) $ (23,524,106)
2035 $ 2576025 $% 242,464 §$ (1,068,003) $ (22,258,549)
2036 $ 2,651,934 $ 230,088 $ (999,770) $ (20,835,473)
2037 $ 2929598 $ 236,991 $§ (914,451) $ (19,058,316)
2038 $ 3,313,163 $ 40,928 $ (795,618) $ (16,581,699)
2039 $ 2.400980 $ 434824 $ (736,623) $ (15,352 166)
2040 & 4,320,838 $ 6,750,521 $ (896,205) $ (18,678,053)
2041 $ 3,605,631 $ 22,361 $ (760,777) $ (15,855,560)
2042 $ 4,681,632 §$ 23,032 $ (564,327) $ (11,761,287)
2043 $ 2,533,420 § 11,862 $ (465,682) $ (9,705,411)
2044 $ 3,516,854 § a $ (311,903) $ (6,500,460)
2045 $ 1,995,441 §$ a $ (227,053) $ (4,732,072)
2046 $ 2,405,368 $ = $ (117,266) $ (2,443,970)
2047 $ 1,586,477 $ 895357 $ (88,344) $ (1,841,194)
2048 $ 810,102 §$ " $ (51,967) $ (1,083,058)
2049 $ 1,083,058 § = $ (0) $ (0}
5
In determining staging adjustments, the offsite levy model also applies inflation to future rates. In so doing it
Acknowledges that rates must keep pace with inflation just as costs do. Also, it acknowledges that an offsite levy
rate of $X paid today is not worth the same as the equivalent $X rate paid in the future (i.e, it is discounted).
Page | 33
City of Chestermere Offsite Levy Rates Update
APPENDIX D: TRANSPORTATION OFFSITE INFRASTRUCTURE
D1. Transportation Offsite Infrastructure Costs
To support future growth, transportation offsite infrastructure is required. The estimated
cost of this infrastructure is based upon: (a) actual construction costs to the cut-off date,
(b) debenture interest associated with financing, and (c) future cost estimates. Total cost
is approximately $251.02 million as outlined in the table below. Actual costs, debenture
interest (if any), and cost estimates were provided by City staff. It is important to note that
these costs represent "gross" costs, of which only a portion will go to support future
development during the 25-year review period. The remainder of this section outlines how
the "net" costs for future development are determined.
Summary of Transportation Offsite Infrastructure
Cost of -,
Future Estimated Cost :
item Project Description competed bangin Debenture of Work Yet to Pot Peet
& Historical Cost
Interest be Completed
Interest
1 {Rainbow Rd Twinning - Chestermere Blvd to Merganser Drive | $ 1,045,273 [agrees all | ll 5 4,045,273
West
| 2 | Rainbow Rd 2 lane rural to 2 lane urban at Goodacre location | & 581,327 (ar | S 581,327
3 [Rainbow Rd Tie in and Signalization at Chestermere Blud! 5 s7agoo[s § - {gs - |[§ 570,000
___4 _ [Project removed and cost estimate added to tem 10 rs | eee ee
[SAWP Rd 240 2 lane rural to 2 lane urban (Phase 1,2,3) 5 11,729,224) § = |S - |S 11,729,224
Rainbow Rd to East City boundary (includes 1 cannal
crossing)
| 6 Rainbow Rd 2 lane rural to 2 lane urban Western Headwerks | S$ - $s 10,446,700 | $ 10,446 700
cannal crossing to TWP Rd 240 (includes rail crossing
| upgrade}
7 Rainbow Rd 2 lane rural bridge to 2 lane urban bridge $ 5,225,444 $ 853,106 | $ 6,078,550:
| (Western Headworks crossing)
| 8 _ [Project removed and cost estimate added to ttem& Cr | ee | eee eee
9 Chestermere Blvd 2 lane rural to 4 lane rural Range Rd 284 to $ 14,418,808 | S$ 14,418,808
Rainbow Rd (potential for 2 lane urban included in scope}
10 jRainbow Rd 2 lane urban to 4 lane urban Merganser Drive § 7,839,980 |} S - KY - 3 7,829, 980:
West te Waterford Bivd
| 44 Rainbow Rd 2 lane urban to 4 lane urban Waterfard Blvd te $s 4,101,000 | $ 4,101,000
TWP Rd 240
| 42 |Chestermere Blvd 2 lane urban to 4 lane urban bridge over S$ 22,806 $ 32,190,000 | $ 32,213,806
| Chestermere Lake
13 |Rainbow Rd 2 lane rural to 2 lane urban Windermere Drive tc | $ 11,278,000]S 11,278,000
Highway 1
14 |Highway 1 & Rainbow Rd interchange (50% cf half diamond} ae | ee S 9,625,000 | $ 9,625,000
[15 _ |Project Removed EE) eee eee eee
[16 _ [Project Removed Ea | ee Ee ee ee
|_17 [Project Removed aE ee ee
| 18 |Highway 1 & Highway 791 1 interchange (1/4 share (SS --|$ _- {[§ 45,439,350 ]S 45,439,350
[ 19 |ProjectRemoved = ss C--"'"('#$C*XNSSCOOOULULULCU-r(S----CC("'é' WC CdS LULU eC
| 20 [Project removed and costestimateaddedtotemi9&a30_ [3 | -|S - [Ss - |s - |
21 __ [Project Removed PS BC Oe
22 |TWP Rd 240 2 lane rural to 2 lane urban (Phase 4) Rainbow $ 5,180,000 | $ 5,180,000
Rd to West City boundary (includes | cannal crossing and 1
| rail crossing)
23 |Rainbow Rd 2 lane urban to 4 lane urban Highway 1 to $ 6,321,700 | $ 6,321,700
Windermere Drive
Page | 28
City of Chestermere Offsite Levy Rates Update
to Chelsea Parade |
| AltaLink ROW
© lotewes neWinieneeDne |S fe
to Memorial Drive/WVindermere Drive
27_|ProjectRemoved NG
28 _|Highway 1 & Range Rd 284 interchange (/4 share) S| S$ SS 17.863,.700$ 17,563,700 |
Highway 1 (potential for 2 lane urban included in scope |
30 _[ProjectRemoved NB
Jester Headworks crossing
| to Windermere Drive
AltaLink ROW |
| Marina Drive Phase 2
| Wrest Chestermere Dr |
|_36 [Range Road 281, TWP Road 241AtoTWP Road 240 | SS 5281,100] $5,281,100 |
[eeceeamtemtieme [me
Headworks Canal Including Crossings, 2-lane urban
| Headworks Canal to Rainbow Road |
" \Gesgeie
Crossing Bridge
100 [Unallocated Offsite Levies CollectedtoDec 31,2016 | STG Gs
S$ 27005,054]$ TS 224,004,134 251,019,188 |
*Costs estimates are reflected in current dollars.
**Estimates include engineering costs and contingencies.
*** Offsite levy project details, allocations, etc. were determined by City staff and their engineering/consulting
advisors.
**** Project numbering may be out of sequence as rows containing deleted projects are hidden.
D2. Transportation Offsite infrastructure Grants & Contributions to Date
The MGA enables the City to allocate the costs of offsite infrastructure to future
development, other than those costs that have been provided by way of special grant or
contribution (ie, contributed infrastructure). The City has/will receive $6.47 million in
special grants and contributions ($4.66 million + $1.81 million) for transportation offsite levy
infrastructure as shown in the table below (note, if the City receives other grants or
contributions in the future, it will be reflected in one of the annua! updates and rates
adjusted accordingly). The result is that the total reduced project estimated cost is $244.55
million.
Page | 29
City of Chestermere Offsite Levy Rates Update
Special Grants and Contributions for Transportation Offsite Infrastructure
|
| 4 , Developer a
Fae _ Total Project Special Other Reduced Project
-- eprint eet cost [Provincial Grants| ASFeement | conteibutions ca
Contributions
| |
eee ee ere
West
ee eee
|__3 [Rainbow RéTie in and Signalization atChestermereBld [Ss S70.000/S = = - [S - [§ =- [S 570,000]
| 4 [Projectremoved and costestimateaddedtotemio sss TSC US
8 TWP Rd 240 2 lane rural to 2 lane urban (Phase 1,2,3) $ 11,729,224 B65) § 1,811,323] & - $ $,262,036
onsen
crossing)
6 Rainbow Rd 2 lane rural to 2 lane urban Western Headworks $ 10,446,700 $ 10,446,700
| cannal crossing to TYVP Rd 240 {includes rail crossing \
upgrade
7 Se ee
| estern Headworks crossing |
| 8 _|Projectremoved andcostestimate addedtoltem6 ss S$ TS SS
a) Chestermere Blvd 2 lane rural to 4 lane rural Range Rd 284 to! $ 14,418,808 $ 14,418 808
Rainbow Rd (potential for 2 lane urban included in scope}
| West to Waterford Blvd |
a ee eee
| TWP Rd 240 |
| Chestermere Lake |
Highway 1 |
7 ese A Se ec) |
|
[15 [ProjectRemoved Ke
[16 [ProjectRemoved CS BT
[ 17 __|ProjectRemoved| RS Cs
18__ [Highway 1 & Highway 7911 interchange (14 share) | S$ 45.439.350/$ = TS S45 439,350 |
[19 [ProjectRemoved ST
20__|Project removed and cost estimate addedtoltem19&30 (S$ = {SS
[21 [ProjectRemved@ CS GK
| 22 [TWP Rd 240 2 lane rural to 2 lane urban (Phase 4) Rainbow | $ 5,180,000 $ 5,180,000
Rd to West City boundary {includes 1 cannal crossing and 1
tail crossing |
© (ae tee es fl Rie adef ta ere fPaencne|)
Windermere Drive
gM al il TREE SI ST kd
to Chelsea Parade i
\ AltaLink ROW H
| to Memorial DriveWWindermere Drive i
[27 [ProjectRemved NS GH BT
| 28 [Highway 1 & Range Rd 284 interchange (1/4 share) |S 17,563,700[$ = [SC BS 17,563,700 |
gel
Highway 1 (potential for 2 lane urban included in scope H
[_30 [ProjectRemoved NS
'--o-- oe
\ estern Headworks crossing) |
'oma ee ee
to Windermere Drive {
|? [icra omens ee
AltaLink ROW |
= -- pial al Tl
Marina Drive Phase 2 |
35 |Chestermere Blvd 4 jane rural to 4 lane urban Marina Drive to | $ 4,978,000 | $ - {$ - |$ - |$ 4,978,000
| West Chestermere Dr
Page | 30
City of Chestermere Offsite Levy Rates Update
[36 [Range Road 281, TWP Road 241AtoTWP Road240 ss [S5.281100/$ 8 828,100
| 37 Township Road 240, Railroad Crossing to Western |S 2,003,000 $ 2,003,000
ee ee el a | a el
| Headworks Canal to Rainbow Road |
Crossing Bridge i
100__[Unallocated Offsite Levies CollectedtoDec 31,2016 |S CdS GS
[S$ 251,019,188 |$ 4,655,865 /$ 1,811,323/$ 244,552,000
D3. Transportation Infrastructure Staging
The timing of construction is used to determine the impact of inflation on cost, the impact of
forecast reserve balances, and the estimate of financial oversizing (described in the Section that
follows). The City anticipates construction of offsite infrastructure as outlined in the table below.
Note, if this schedule is adjusted in the future, it will be reflected in one of the annual rate/bylaw
updates.
Transportation Infrastructure Staging
item Project Description veut at
Consiniction
|
Drive West
2
3
4 _|Projectremovadandcostastimaisaddadisiiemig | -
5 |TWP Rd 240 2 lane rural to 2 lane urban (Phase 1,2,3) 2024
Rainbow Rd io East City boundary (includes 1 cannal
crossing)
6 |Rainbow Rd 2 lane rural to 2 lane urban Western 2036
Headworks cannal crossing to TWP Rd 240 {includes rail
| crossing upaqrade}
|
| festern Headworks crossing)
:
284 to Rainbow Rd (potential for 2 lane urban included in
| Westto Waterford Blvd
| TWP Rd 240
;
| Chestermere Lake
| to Highway 1
414
_15 |ProjectRemoved CT
_16 [ProjectRemoved C--C--i'"'"'C'*wCSC
19 [ProjectRemoved --Ci'iES
Page | 31
City of Chestermere Offsite Levy Rates Update
| 22 |TVYP Rd 240 2 lane rural to 2 lane urban (Phase 4) 2033
Rainbow Rd to West City boundary {includes 1 cannal
| crossing and 1 rail crossing}
Windermere Drive
;
| Blvd to Chelsea Parade
| AltaLink ROW
Blvd to Memorial DriveWindermere Drive
27
28
| to Highway 1 (potential for 2 lane urban included in scope
[30
Nestern Headworks crossing)
| Bivd to Windermere Drive |
Parade to AltaLink ROW
:
| to Marina Drive Phase 2
| to West Chestermere DOr
| 36
i
| Headworks Canal Including Crossings, 2-lane urban _|
Headworks Canal to Rainbow Road j
| Canal Crossing Bridge
*The share of projects beyond the 25-year review period are not included in rates today (see financial oversizing in
next section).
**Costs are inflated to the year of construction using an inflation rate of 3% for the next year, and 3% thereafter.
D4. Transportation Offsite Infrastructure Benefiting Parties
The transportation offsite infrastructure previously outlined will benefit various parties to
varying degrees as determined by the City's staff and engineering advisors. The potential
benefiting parties include:
e City of Chestermere - that portion of cost which is required to service existing
residents.
e Other Stakeholders - other parties (such as neighboring municipalities) that benefit
from the infrastructure.*
e City of Chestermere Future Development (Financial Oversizing) - that portion of cost
which benefits future development beyond the 25-year review period.
Page | 32
City of Chestermere Offsite Levy Rates Update
e City of Chestermere Future Development (in Rates) - all growth-related
infrastructure (i.e., leviable transportation infrastructure costs) during the 25-year
rate planning period.
The table below outlines the allocation of transportation offsite levy infrastructure costs to
benefiting parties. Project allocations were determined by City staff.
*Other Stakeholder share removed from total project cost and is not included in the offsite levy mode!
Allocation of Transportation Infrastructure to Benefiting Parties
= ; -- : --_ "
Reduced Project Sues Developer Share Beyond 25 | OSL/ Developer
item Project Description Cost Muni Share % maa Yrs (Financial Gversizing %) Share %
' 4 |Rainbow Rd Twinning - Chestermere Blvd to Merganser Drive | $ 1,045,273 eT ee a. 100.0%
West |
| 2 Rainbow Rd 2 lane rural to 2 lane urban at Goodacre location | $ 581,327 0.0% 100.0%
| |
Rainbow Rd Tie in and Signalization at Chestermere Bivd [s 570000]; rr CUTr--"'('; CrCl KH Cd 100.0%
4 _ [Project removed and cost estimate added to Item 10 Is [7 ne eee eee eee 100.0%
5 TWP Rd 240 2 lane rural to 2 lane urban (Phase 1,2,3) |$ §,262,036 0.0% 100.0%
Rainbow Rd to East City boundary {includes 1 cannal
| crossing) |
6 Rainbow Rd 2 lane rural to 2 lane urban Western Headworks | S 10,446,700 44.0% 56.0%
cannal crossing to TWP Re 246 (includes rail crossing
upgrade} |
7 |Rainbow Rd 2 lane rural bridge to 2 lane urban bridge 5 6,078,550 50.0% 50.0%
| (Western Headworks crossing)
& [Project removed and cost estimate added to tem Ls 7 nn eee ee eee 100.0%
/ 9 Chestermere Blvd 2 lane rural to 4 lane ruralRange Rd 284 to 5S 14,418,808 0.0% 100.0%
Rainbow Rd (patential fer 2 ane urban included in scope)
10 |Rainbow Red 2 lane urban te 4 lane urban Merganser Orive $ 7,839,980 0.0%. 100.0%
West to Waterford Bivd
| 44 [Rainbow Rd 2 lane urban to 4 Jane urban Waterford Bivdto =| S 4,101,000 40.096. 60.0%
TWP Red 240
| 42 |Chestermere Blvd 2 lane urban to 4 Jane urban bridge over == S 32,213,806 75.0% 2.0% 23.0%
Chestermere Lake
13 [Rainbow Rd 2 lane rural te 2 lane urban Windermere Drive to S$ 11,278,000 24.0% 76.0%
| Highway 1 |
| 14 Highway 1 & Rainbow Rd interchange (50% of half diamond) | $ 9,625,000 pie = ee 100.0% 0.0%
[15 _ [Project Removed is 7 ee ee a ee 100.0%
|__16__ [Project Removed 1s ES | 100.0%
| 17 |Project Removed Is - fete 100.0%
| 18 [Highway 1 & Highway 7911 interchange (1/4 share is 45439350; | | 100.0% 0.0%
[19 [Project Removed s a | 100.0%
|__20 _|Project removed and cost estimate added to Item 19 & 30 Is - {| 100.0%
21 |Project Removed Is ee ee ee 100.0%
| 22 | TWP Rd 240 2 lane rural to 2 lane urban (Phase 4) Rainbow |S 5,180,000 22.0% 68.0%
Rd to West City boundary (includes 1 cannal crossing and 1
rail crossing) i
23 {Rainbow Rd 2 lane urban to 4 lane urban Highway 1 to $ 6,321,700 48.0% §2.0%
Windermere Drive H
' 24 |Range Ro 284 2 lane rural to 2 lane urban Chestermere Blvd | S$ 5,975,300 4O% 96.0%
to Chelsea Parade |
25 |Range Re 284 2 Isne rural to 2 lane urban TWP Re 240 to |s 8,685,600 52.0% 48.0%
AltaLink ROW |
| 26 |Range Re 284 2 lane rural to 2 lane urban Chestermere Bd | S 9,369,800 64.0% 26.0%
| to Memorial Drive/Windermere Drive i
|_ 27 [Project Removed is 2 ee es ee 100.0%
28 = |Highway 1 & Range Re 284 interchange (1/4 share) is 17,563,700 84.0% 16.0%
Page | 33
City of Chestermere Offsite Levy Rates Update
| 29 |Chestermere Blvd 2 lane rural to 4 lane rural Rainbow Re te is 1,716,000 12.0%. 88.0%
Highway 1 (potential for 2 lane urban included in scope) {
30 [projigiemmd se eee tooo
| 31 [Rainbow Re 2 lane urban bridge te 4 lane urkan bridge is 5,924,000 Se 36.0%. 64.0%
| (Western Headworks crossing} {
32 |Rainbow Rd 2 lane urban to 4 lane urban Chestermere Bive to | S 5,143,600 48.0% §2.0%
| Windermere Drive I
33 [Range Rd 284 2 lane rural te 2 lane urban Chelsea Parade to |S 2,964,170 AT aN ae
| AltaLink ROW |
34 |Chestermere Blvd 4 lane rural to 4 lane urban Rainbow Réto |$ 6,003,000 ae 12.0%,
| Marina Drive Phase 2 |
35 |Chestermere Blvd 4 lane rural te 4 lane urban farina Drive te 8 4,978,000 16.0%. 84.0%
| West Chestermere Dr |
36 _[Range Road 281, TWP Road 241AtoTWPRoad 240 |S 8.281100 te 6H
| 37 |Township Read 240, Railroad Crossing to Western | $ 2,003,000 32.0% 68.0%
| Headworks Canal Including Cressings, 2-lane urban
| 38 |Township Read 240, Railroad Cressing to Western |S 1,468,000 22.0% 65.0%
Headworks Canal to Rainbow Read |
| 39 |Range Road 281, TWP Read 2414 to TWP Read 240 Canal | $ 7,075,200 43.0%. 56.0%
Crossing Bridge
100 [Unallocated Offsite Levies CollectedtoDec31,2016 |S Teme 100.0%
| \$ 244,552,000
*Allocations to future development (vs municipal share etc.) were determined by City staff and their
engineering/consulting advisors.
**Financial oversizing is determined by separating out the pro rata portion of developer cost beyond the 25-year
review period, in comparison with the anticipated year of construction. As the years move forward and rates are
updated, these additional developer costs will be included in rate calculations. For example, a project which is
slated to be constructed in year 20 of the 25-year review period will have 20% (5/25) of its costs in rates today,
and 80% (20/25) of its costs will sit beyond the 25-year review period.
D5. Existing Receipts & Adjusted Levy Cost
Using the offsite levy share percentages shown in the previous section and applying those
percentages to project costs results in an offsite levy cost of approximately $106.90 million.
However, prior to allocating these costs to benefiting areas, existing offsite levy receipts
collected from developers need to be considered in determining the residual/net costs to
developers. The City has collected $26.54 million ($4.93 million + $21.62 million) in offsite
levies to date, and results in an adjusted offsite levy cost of approximately $80.36 million.
Page | 34
City of Chestermere Offsite Levy Rates Update
Offsite Levy Funds Collected to Date & Adjusted Levy Cost
) { : Offsite Levy
Offsite Levy Adjusted
stem Project Description sie (anya Funds Collected ands Cocies Developer (Levy}
= fo Dec 31, 2046 ae gant Cost
|
| West |
L_3
[4 |Projectremoved and costestimateaddedtotemi¢ =o |S TSC CS TS (288)
5 TWP Rd 240 2 lane rural to 2 lane urban (Phase 1,2,3} is 5,262,036 | S$ 150,720 | $ 1,181,704 | $ 3,929,602
Rainbow Rd to East City boundary (includes 1 cannal |
crossing) |
6 Rainbow Rd 2 lane rural to 2 lane urban Western Headwearks | S$ 5,850,152 $ 1,144,509 | S 4,705,643
cannal crossing to TWP Rd 240 (includes rail crossing
| upgrade) |
|
(Western Headworks crossing) |
|__& [Projectremoved and costestimate addedtottemé == =|S = - |S - [S$ 2198[s (2,198)
; 9g Chestermere Bivd 2 lane rural to 4 lane rural Range Re 284 to | S 14,418,808 $ 3,537,028 | $ 10,881,781
1 Rainbow Rd (potential for 2 lane urban included in scope) |
| 40 [Rainbow Rd 2 lane urban to 4 lane urban lderganser Drive = $ 7,839,980 ot = Sa
West to Waterford Blvd |
11 {Rainbow Rd 2 lane urban to 4 lane urban Waterford Blvdte } = S 2,460,600 (a aad ln
TWP Rd 240 |
p= ei al cd
Chestermere Lake
Highway 1 {
15
16__|ProjectRemoved CC SLLTTCC CSC S83 922 (33,922)
[47
18
19
20
21
22 | TWP Rd 240 2 lane rural to 2 lane urban (Phase 4} Rainbow $ 3,522,400 | S - $ 1,195,079 | $ 2,327,321
Rd to West City boundary (includes 1 cannal crossing and 1
rail crossing)
O--_ oe ea Trae
Windermere Drive |
"
| to Chelsea Parade |
| AltaLink ROW |
* fanaa oe RT ere
to Memorial Drive/Windermere Drive |
29 |Chestermere Blvd 2 lane rural to 4 lane rural Rainbow Rd to s 1,510,080 | $ - $ 1,126,006 | S 284,074
| Highway 1 (potential for 2 lane urban included in scope}
[30 _ [Project Removed Is | SC 56499] S (656,499)]
| 31 |Rainbow Rd 2 lane urban bridge to 4 lane urban bridge PS? oO
| (Western Headworks crossing)
| 32 |Rainbow Rd 2 lane urban to 4 lane urban Chestermere Bivd te aes ae ee
\ Windermere Drive
| 33 [Range Rd 284 2 lane rural to 2 lane urban Chelsea Parade to =e eX eee
| AltaLink ROW
| 34 |Chestermere Blvd 4 lane rural te 4 lane urban Rainbow Rd to
| Marina Drive Phase 2
35 |Chestermere Blvd 4 lane rural to 4 lane urban Marina Drive to PS es
| West Chestermere Or
| 36 [Range Road 281, TWP Road 241A to TWP Road 240 fs 2os7.4i6[s TS 20772818 2,749,688 |
| 37 {Township Road 240, Railroad Crossing te Western oa ee) ae ee
| Headworks Canal Including Crossings, 2-lane urban
38 |Township Road 240, Railroad Crossing to Western . aa? |
| Headworks Canal to Rainbow Road
| Crossing Bridge
| 100 [Unallocated Offsite Levies CollectedtoDec21,2016 dS S704 22215 TS (2,704,322)
($ 406,903.500/$ 4,975,920 7$ 29,618,348 [$ 80,360,032 |
City of Chestermere Offsite Levy Rates Update
D6. Summary of Transportation Offsite Levy Cost Flow-through
As shown in the figure below, the total cost for transportation infrastructure that forms the
basis of the rate is approximately $80.36 million. The cost allocations to each benefitting
party are based on the benefitting percentages shown in Section D4. The offsite levy
balance (due from developers) is allocated to various benefitting areas (as described in
the next section).
Total Transportation Offsite Levy Costs
= Future Less: Levy = Off-site
Development Receipts Balaneee
Applied
(OSL Share) $26.54M $80.36M
$106.90M '
= Future
Development
"Financial
Oversizing"
$110.45
: Less: Special
Project Grants & = Project = Other
Costs Contributions Balance Share
$251.02M $6.47M $244.55M $0.00M
= Existing
Development
(City Share)
$27.20M
Page | 36
City of Chestermere Offsite Levy Rates Update
D7. Transportation Infrastructure Benefiting Areas
Net developer costs for each project have been allocated to multiple benefiting offsite levy
area (see tables below). Allocations are denoted with a "I" below applicable area numbers.
Benefiting areas were determined by City staff. The lands anticipated to develop over the
25-years in each offsite levy benefitting area are used to determine rates.
Benefiting Areas for Transportation Offsite infrastructure
Ite Project Description DEVELOPER 24 17.11 18.1 aut
poe aise ao pel WEE Sad BS Se Pad Se Sa = ais = Ei
1_|Rainbow Rd Twinning - Chestermere Blvd to Merganser Drive West s 3811 4 SE: 4
2 [Rainbow Rd 2 jane ruralto 2 lane urban at Goodacre location is = eae ala a aes le lapaa eta tey 4 [4 aT 2
'3 [Rainbow Rd Tie in and Signalization at Chestermere Blvd § 90525/ at] Ss] a] ala] a ei elal el alaletal alata yay 4} 4 [4 ft |
4 [Project removed and cost estimate added to ttem 10 [sage tata tat at ats atafatal eet ata aets itt 4 ta at |
5 [TWP Rd 240 2 lane rural to 2 lane urban (Phase 1.2.3) Rainbow Rd toEastCitys 3929602 1/1[4]alalal tl alala[efalafal[a[e[t[s] 4 [ +] 1 [1 |
6 |Rainbow Rd 2 lane rural to 2 lane urban Western Headworks cannal crossing] S 4.705.643 | 1 aa fale lol aie a alae) aaa alata aT 4 Ta Ta |
7 |Rainbow Rd 2 lane rural bridge to 2 lane urban bridge (Western Headworks |S 2,315,188 | 1 Ie[afalalafafals|s[sfafefafalelafaf ae [a |e ds |
crossing |
8 [Project removed and cost estimate added to ttem 6 5 2198) 4 [4 [afalalatata[atatetatet satel atay + [4 ft [4 |
9 |Chestermere Blvd 2 lane rural to 4 lane rural Range Rd 284 to Rainbow Rd ['S 10.881,781 | , s[afalafelelalalelafefefafale(efa] a fia fads |
potential for 2 lane urban included in scope
10 {Rainbow Rd 2 lane urban to 4 lane urban Merganser Drive West to Waterford] S 6,050,179 | , lelafefate}afalafafslafate|afalafa] a fa [oa fa |
Blvd
11 [Rainbow Rd 2 lane urban to 4 lane urban Waterford Blvd to TWP Ra 240 Ss i19s5s73:1[1[4[aja[ laf ela (el ale afelaleis fa + [4 [1 [4 |
12 [Chestermere Btvd 2 lane urban to 4 lane urban bridge over Chestermere Lake] S 6.379.255, 1/4 /1]/4]/4{a(t]ifel[alafalsf[afafa(atal 4 [ 4 [ 1] 4 |
13 |Rainbow Rd 2 lane rural to 2 jane urban Windermere Drive to Highway 1 S$ 7.271.460 | 4 Laalal a ee) els sy si oleate etal atial © [4 [ a |] 4)
14 [Highway 1 & Rambow Rd interchange (50% of half diamond) s_ c7oi3sit|t[t[ala(s(apals(tfetaiataetafe( ata a] 1 [4 ft |
45 s (ios t[a[*[a[alatefaiela(sialaiai et et aia 4 [1 it ft |
16 s_ @3ezit]i[tit[ilal at at a[ sas etetafatets, 4 [4 [4 4 |
17 sss t[a etal ial a el sla al alae alee ay # | 4a [4
18 [Highway 1 & Highway 7911 interchange (1/4 share sas; 1] t[t}afalaltiafatsferatatsfatata(t7 1 fa tat a |
19 s_a73s7aiifitatajala(sfelats[eletatatais( sis] 4 fos tt ft |
20 [Project removed and cost estimate added to Item 19 & 20 $ gaa aftfafata(sfatatels(ats[etataefetats] «4 [oa [1 [a |
21 s asaniafa[alal(efalatatals(etalevai seta fay 1 a Pa Ca]
22 |TWP Rd 240 2 lane rural to 2 lane urban (Phase 4) Rainbow Rdto West Cty [S 2,327,321], lefatefefelatelefe]sefele[efafal eta fia [a |
boundary (includes 1 cannal crossing an 1 rail crossing}
23 [Rainbow Rd 2 iane urban to 4 lane urban Highway 1 to Windermere Drive S$ 3.056.306 | 7/4 [a] 0 a] | a ele el eel esas ae a aa Ts
24 [Range Rd 284 2 lane rural to 2 lane urban Chestermere Bivd to Chelsea S 4,582,701 | e[efafalafatelefele|sfelstels[afat a fa |e fe |
Parade
|_25 [Range Ré 284 2 lane rural to 2 lane urban TWP Ré 240 Io AttaLink ROW S$ 3,403,279 [4 [414] 814] al 2 a) ela al el el als ale] el «| 2 2 |
26 [Range Rd 284 2 lane ruralto 2 lane urban Chestermere Stvd to Memorial $ 2,756,119] | e[e{alalafelalefalefefefelsfelafal «fa ] ade |
i Drive/Windermere Drive
(27 [Project Removed s 301135) 1[1[1[afa[efaiafels [at steletetetats] «fa [a [4 |
28 [Highway 1 & Range Rd 284 interchange (1/4 share s_ 263050611] t]a[alatai ai s[ sl sia siefatat staat 4] 4 | a 4 |
29 |Chestermere Biyd 2 lane rural to 4 jane rural Rambow Rd Io Highway 1 Ss 384,074 | 4 s{afalalefafelefelsfefafefels[afa] a [oa fia] a |
\ potential for 2 lane urban included in scope |
[30 [Project Removed s_ @s64ol4[t[afalaiatafafelalatatele(e(atatay «1 [1 fot [1 |
31 [Rainbow Rd 2 lane urban bridge to 4 lane urban bridge (Western Headworks |S 3,326,197 | , Pele{atafals[afalels]ofelelefetelaf a [a fia [a |
crossing
32 |Rainbow Rd 2 tane urban to 4 lane urban Chestermere Blvd to Windermere |S 1,404,004 , slafatalefafatalefelefalefefels[ af a fia [ia fa |
Drive: i
[33 JRange Re 284 2 lane rural to 2 lane urban Chelsea Parade to AttalinkROW |S (386.181) 1/4]/4]4]4]#/a]a[als[alefefel[el[aft[1[ 4 [ 1 ] 1 [ 4 |
34 |Chestermere Blvd 4 lane rural to 4 lane urban Rainbow Rd to Marina Drive S$ 5,097,114 4 s{afalaisfafalefelefafefefelelafal ce [a] a] a |
Phase 2 i
35 |Chestermere Btvd 4 lane rural to 4 lane urban Marina Drive to West S 3,889,210" | Pelatats[e[sfafsfafsfalsfafefetafaf s [oad a] a
hestermere Or
(36 [Range Road 281, TWP Road 241A to TWP Road 240 s 27496ss i] t[a[a[afelafata[s[afsyaeletelataia] + [oa fa ft |
| 37 [Township Road 240, Railroad Crossing to Western Headworks Canal S 1,256,804 | 4 sfafafafefeletsfelsfelsfalelsfala] a [a fad a |
| Including Crossings, 2-lane urban
38 [Township Road 240, Railroad Crossing to Western Headworks Canal to S 948,334) e{afafafa[sfalsfeletalefelsfelafa] a fia fia fa |
Rainbow Road !
[39 [Range Road 281, TWP Road 241A to TWP Road 240 CanalCrossing Bridge |S 3.603.614 1/1] 1/4[ t/t] 4] 1[ a] t[tlalalsielelt[a] 1 [1] 1 if 2 |
|. 100 |Unatlocated Offsite Levies Collected to Dec 31, 2016 $ (2,704,322); 1] 1, #[t[1[a]atstlaelefafalelep el stafal 1 [1 [ 4] 4 |
$ 80,360,032 |
Page | 35
City of Chestermere Offsite Levy Rates Update
D8. Reserve Balance
The balance of the City's transportation reserve at December 31°, 2024 is $4,697,967.74.
This updated balance takes into consideration public facilities fees collected and
transferred to the recreation account, and expenditures up to end-2024.
Transportation Offsite Levy Reserve Balance
Description Or Cr Balance
Offsite Levy Expenditures to December 3], 2016 $ 2,221,329.74 $ (2,221,329.74)
Offsite Levy Receipt Allocations to December 31, 2016 $ 2,220,798.53 $ (531.21)
Debenture Interest Expenditure to December 31, 2016 $ = $ (531.21)
Unallocated Receipts to December 31, 2016 $ 2,704,321.55 $ 2,703,790.34
Opening Balance $ 2,703,790.34
2017 $ 2,703,790.34
Interest on Opening Balance $ 27,037.90 $ 2,730,828.24
Project Expenditures (OSL Share) As Reflected by City $ 3,298,011.83 $ (567,183.59)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By City $ (143,227.94) $ (423,955.65)
Offsite Levy Receipts $ 84,552.03 $ (339,403.62)
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if any) $ = $ (339,403.62)
Debenture Interest Expenditure $ - $ (339,403.62)
Interest on Project Expenditure $ 23,660.88 $ (363,064.50)
Interest on Offsite Levy Receipts $ 422.76 $ (362,641.74)
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if any) $ $ (362,641.74)
Interest on Debenture Expenditure $ - $ (362,641.74)
2018 $ ( 362,641 74)
Interest on Opening Balance $ 1,241.89 $ (373,883.63)
Project Expenditures (OSL Share) As Reflected by City $ 708,001.90 $ (1,081,885.53)
Net Project Expenditures (OSL Share) In Addition te Amount Reflected By City $ 18,788.10 $ (1,100,673.63)
Offsite Levy Receipts $ 184,398.64 $ (916,274.99)
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if any) $ = $ (916,274.99)
Debenture Interest Expenditure $ - $ (916,274.99)
Interest on Project Expenditure $ 5,632.62 $ (921,907.61)
Interest on Offsite Levy Receipts $ 1843.99 $ (920,063.63)
interest on Receipts Collected Under Old Agreement or Old Bylaw (if any) $ = $ (920,063.63)
Interest on Debenture Expenditure $ - $ (920,063.63)
2019 $ (920,063.63)
Interest on Opening Balance $ 28,521.97 $
\oemmaaee
Project Expenditures (OSL Share) As Reflected by City $ 1,678,261.16 $ (2,626,846.76)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By City $ 35,185.42 $ (2,662,032.18)
Offsite Levy Receipts $ 333,135.66 $ (2,328,896.52)
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if any) $ = $ (2,328,896.52)
Debenture Interest Expenditure $ - $ (2,328,896.52)
interest on Project Expenditure $ 13,279.21 $ (2,342,175.73)
Interest on Offsite Levy Receipts $ 3,331.36 $ (2,338,844.37)
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if any) $ - $ (2,338,844.37)
Interest on Debenture Expenditure $ - $ (2,338,844.37)
2020 $(2,338,844.37)
Interest on Opening Balance $72,504.18 $(2,411,348.55)
Project Expenditures (OSL Share) As Reflected by City $208,769.05 $(2,620,117.60)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By City $(0.05) $(2,620,117.55)
Offsite Levy Receipts $1,442,110.57 $(1,178,006.98)
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if any) > $96,691.73 $(1,274,698.71)
Interest on Project Expenditure $1,617.96 $(1,276,316.67)
Interest on Offsite Levy Receipts $14,421.11 $(1,261,895.56)
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if any) $= $(1,261,895.56)
Page | 36
City of Chestermere Offsite Levy Rates Update
2021 $(1,261,895.56)
Interest on Opening Balance $32,809.28 $(1,294,704.85)
Project Expenditures (OSL Share) As Reflected by City $341,661.79 $(1,636,366.64)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By City $0.21 $(1,636,366.85)
Offsite Levy Receipts ; $3,141,436.84 $1,505,069.99
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if any) $- $1,505,069.99
Interest on Project Expenditure $2,220.80 $1,502,849.19
Interest on Offsite Levy Receipts $15,707.18 $1,518,556.37
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if any) $- $1,518,556.37
20220 18,57
Interest on Opening Balance $30,523.46 $1,549,079.83
Project Expenditures (OSL Share) As Reflected by City $240,751.77 $1,308,328.06
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By City $(66,088.11) $1,374,416.17
Offsite Levy Receipts $2,585,122.63 $3,959,538.81
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if any) $3,959,538.81
Interest on Project Expenditure $3,141.81 $3,956,397.00
Interest on Offsite Levy Receipts $25,851.23 $3,982,248.23
interest on Receipts Collected Under Old Agreement or Old Bylaw (if any) $3,982,248.23
2023 $3,982,248.23
Interest on Opening Balance $79,797.29 $4,062,045.52
Project Expenditures (OSL Share) As Reflected by City $3,012,113.00 -- $1,049,932.52
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By City $(127,806.00) $1,177,738.52
Offsite Levy Receipts $7,207,685.08 $8,385,423.60
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if any) $8,385,423.60
Interest on Project Expenditure $37,576.11 $8,347,847.49
Interest on Offsite Levy Receipts $72,076.85 $8,419,924.34
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if any) $8,419,924.34
2028 $ 8,419,924.34
Interest on Opening Balance $168,550.82 $ 8,588,475.16
Project Expenditures (OSL Share) As Reflected by City $10,464,954,87 $ (1,876,479.71)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By City $ (1,876,479.71)
Offsite Levy Receipts a $6,639,906.81 $ 4,763,427.10
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if any) $ 4,763,427.10
Interest on Project Expenditure $131,858.43 $ 4,631,568.67
Interest on Offsite Levy Receipts $66,399.07 $ 4,697,967.74
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if any) $ 4,697,967.74
D9. Development and Transportation Infrastructure Staging Impacts
Transportation offsite infrastructure will be constructed in staged fashion over the 25-year
review period. We have reviewed the availability of offsite levy funds to meet these
construction requirements and found that offsite levy reserve funds will not be sufficient to
pay for construction of transportation infrastructure from time to time-front ending of
infrastructure will be required. A front-ender is the party that constructs and pays up front
for infrastructure that benefits other parties. The front-ender (be it a municipality or a
developer) is reimbursed over time as levies are collected, and in accordance with the
municipality's front-ending repayment policies.
To compensate parties for capital they provide in front-ending offsite infrastructure
construction, a 5.04% interest allowance has been charged to the reserve when it is
forecast to be in a negative balance. Further, a 2.00% interest credit has been provided to
the reserve when it is forecast to be in a positive balance. The graph and table below outline
the forecast transportation levy reserve balances over the 25-year development period.
Page | 37
City of Chestermere Offsite Levy Rates Update
If necessary, an interest staging adjustment has been applied to rates (slightly positive or
slightly negative) to ensure that the forecast reserve balance at the end of the 25-year
review period always returns to break-even (i.e, developers are not charged too much
thereby providing a windfall to the City, nor are they charged too little thereby placing an
unequitable burden on taxpayers).
Anticipated Transportation Offsite Levy Reserve Balances®
Transportation Reserve
$10,000,000 ry,
A
$- | \ ae VA =o Z
$(5,000,000) lo ms s\n oo 9 a, = 2)
" Bs 3s s\s 3 Se 5
$(10,000,000) iS ---- ------* a Ts a sa i
s200000) |
at | a |
$(25,000,000)
$(30,000,000)
Year
Page | 38
City of Chestermere Offsite Levy Rates Update
Anticipated Transportation Offsite Levy Reserve Balances
Reserve Balance [$ _ 4,897,968 |
Year Receipts Expenditure interest Balance
2025 $ 10,048,474 § 7,749,408 §$ 139,941 §& 7,136,975
2026 $ 6,149,450 $ 13,334,063 $ (2,401} § (50,039)
2027 $ 6,126,391 § 3,930,197 § 42,923 §& 2,189,078
2028 ES 10,464,098 $ 10645639 §$ 40,151 §& 2,047 88
2029 $ 7,265,208 § §,$56,142 $ 75,135 § 3,631 869
2030 $ 4,905,161 $ - $ 174,741 & 8,911,791
2031 $ 2,369,754 $ 10,234,557 $ 20,940 $ 1,067,929
2032 $ 1,°71,357 §$ - $ 36,785 § 2,896,072
2033 $ 3,447,870 $ 7,452,003 $ (55,846) $ (1,163,907)
2034 $ 5,001,423 § 4,946,865 $ (55,911) $& (1,165,260)
2035 $ 3,485,622 § 3,306,841 $ (49,718) $ (1,036,197)
2036 $ 3,274,656 $ 17,676,224 $ (778,063) $ (16,215,828)
2037 $ 3,961,455 $ 6,593,602 § (849,938) 3 (19,797,913)
2038 $ 4,080,298 § 8,086,369 S$ (1,199,721) $ (25,003,705)
2039 $ 3,345,012 $ - $ (1,091,598) $ (22,750,292)
2040 $ 5,212,215 $ - $ (883,919) S$ (18,421,956)
2041 $ 4,367,659 $ 5,412,880 $ (981,148) 3 (20,448,365)
2042 $ §,642,106 $§ - $ (746,235) 3 (15,552,495)
2043 3 3,519,643 $ - $ (606,456) S (12,639,308)
2044 $ 4,460,448 $ = $ (412,215) $ (8,591 074)
2045 $ 3,019,144 §$ - $ (280,825) $ (5,852,755)
2046 $ 3,789,047 $ 5,227,785 $ (387,491} $& (7,658,985)
2047 $ 3,297,339 § ~ $ (221,843) $ (4,823,493)
2048 $ 2,238,188 $ 234,002 $ (132,013) $ (2,751,312)
2049 $ 2.902.333 § 241,022 §$ (0) $ (0}
© in determining staging adjustments, the offsite levy model also applies inflation to future rates. In so doing it
acknowledges that rates must keep pace with inflation just as costs do. Also, it acknowledges that an offsite levy
rate of $X paid today is not worth the same as the equivalent $X rate paid in the future (i.e, it is discounted).
Page | 37
City of Chestermere Offsite Levy Rates Update
APPENDIX E: STORMWATER OFFSITE INFRASTRUCTURE
El. Stormwater Offsite Infrastructure Costs
To support future growth, stormwater offsite infrastructure is required. The estimated cost
of this infrastructure is based upon: (a) actual construction costs to the cut-off date, (b)
debenture interest associated with financing, and (c) future cost estimates. Total cost is
approximately $87.43 million as outlined in the table below. Actual costs, debenture
interest (if any), and cost estimates were provided by City staff. it is important to note that
these costs represent "gross" costs, of which only a portion will go to support future
development during the 25-year review period. The remainder of this section outlines how
the "net" costs for future development are determined.
Summary of Stormwater Offsite Infrastructure
Cost of <
; ; 2 Completed Work |Future Debenture Sand Cask os Total Project
'Item Project Description " . Work Yet to be .
& Historicai interest Estimated Cost
'Completed
Interest
6 |Phase 0 - Storm outfall prelim engineering '$ 728649/$ = - I$ 1,166,080 | $ 1,894,729
7 |Phase 1 - Centralized stormwater reservoir Phase 1 1 $ - CF 2els 9,172,556 | $ 9,172,556
| 8 |Phase 2 - Outlet forcemain & pump station Phase 1 | $ 4 | eee ES 30,692,227|$ 30,692,227
|_9 [Phase 3 - Centralized stormwater reservoir expansionPhase2__|_$ | eee 14,033,981 | $ 14,033,981
|10 [NW Storm Trunk Phase A | $ 2 ee Se 723,600 | $ 723,600
|_44_]NW Storm Trunk Phase Bi [$ 1,536,056/$ - {[$ - {8 1,536,056
| 12 [NW Storm Trunk Phase C-Waterford to Rainbow Fall UnderDrain | $ © Brie stil 2 1,178,140 | $ 1,178,140
13 [NW Storm Trunk Phase D - Project Deleted | $ -[$ ee SC
14 |NW Storm Trunk Phase E - Splitter MH and Pipe to Southshore | $ ~ |S aS 721,725 | $ 721,725
15 [NWStemmtunkPhaseR NS
| 16 [SW Storm Trunk Phase A | 3 eS as 2,097,712 | $ 2,097,712
17_|SE Storm Trunk Phase A | $ a wae: 9 366,964 | $ 9,366,964
__18 |NE Storm Trunk Phase A-E | $ - Sas 7,998,993 | $ 7,998,993
|_19 [NW Stormwater Trunk Phase B2 | $ - |S eS 1,445,040 | $ 1,445,040
| 20 [Land for Centralized facility 1$ 20,386/$ - +|$ 4,000,000 | $ 4,020,386
| 21 [Rainbow Falls Underdrain |$ 2544969/$ = - {[$ - |$ 2,544,969
100 |Unallocated Offsite Levies Collected to Dec 31, 2016 | $ -(S D> = [S$ «s |[& 2 |
i$ 4830,060/$ = - [$ 82,597,018 | $ 87,427,078
*Costs estimates are reflected in current dollars.
**Estimates include engineering costs and contingencies.
*«*Offsite levy project details, allocations, etc. were determined by City staff and their engineering/consulting
advisors.
**** Project numbering may be out of sequence as rows containing deleted projects are hidden.
E2. Stormwater Offsite Infrastructure Grants & Contributions to Date
The MGA enables the City to allocate the costs of offsite infrastructure to future
development, other than those costs that have been provided by way of special grant or
contribution (i.e, contributed infrastructure). The City has/will receive $0.00 in special
grants and contributions for stormwater offsite levy infrastructure as shown in the table
below (note, if the City receives other grants or contributions in the future, it will be reflected
Page | 41
City of Chestermere Offsite Levy Rates Update
in one of the annual updates and rates adjusted accordingly). The result is that the total
reduced project estimated cost is $87.43 million.
Special Grants and Contributions for Stormwater Offsite Infrastructure
- 7 a Developer ;
P . Total Project |Special Provincial Other Reduced Project
Contributions
6 [Phase Q-Stormoutfallprelimengineering SS 18OK720{$ | TSC SCC «SCS 1,894,729
7 [Phase 1-Centralized stormwaterreservoirPhaset ss SS 9.172.556[/$ SCC CdSCti' S*"S 9,172,556
8 [Phase 2-Outletforcemain& pump station Phase1_ _----ss$~------(30,692,227(/$ ss - Sd - {$s [8 30,692,227
_9 [Phase 3 - Centralized stormwater reservoir expansionPhase2__|$__--14,033,981/$ ss - SS - [ss = *([S 14,033,981
10 |NWStormTrunkPhaseA st C"'iS:COCT23GOO| SS eC dC "(it Cd sC' S*"CS 723,600
11 [NWStormTrunkPhaseB1_ ss C"'Cé'*S:OC+dC«SOGOSB/ SG CC - CSCC"'CS§SCSCOUUUUUUUUCU- CdS 1,536,056
13 |NWStorm TrunkPhaseD-ProectOeeted SS CdS ST dS TC *S :
14 [NW Storm Trunk Phase E -SplitterMHandPipetoSouthshore $s 720,725/$ TSC! CC Ce CdS 721,725
1G |NWStemtenkPhasek NS OS CdS SC «*S :
16 |SWStormTrunkPhaseA CC': OOF IZ(S CC CdS 2,097,712
_47 [SEStormTrunkPhaseA :--"'"(;SCOCONS:COib6 GSS | CdC"('CW CGC CUS 9,366,964
18 |NEStormTrnkPhaseAE SC oaga§ SC dS «dS, 998,093
19 |NW Stormwater TrunkPhaseB2_ CC' OMT SC dS SS 1,445,040
(20 [LandforCentralizedfaciity ('SS 40R0386/S CC - CC"' ESC*dTSUUUUCU- CS 4,020,386
21 Rainbow FallsUnderdrain SACO SC CSC ST dC' «dC 2,544,969
100 [Unallocated Offsite Levies CollectedtoDec 31,2016 SC SC C(t dS :
$s eraaro7ma/s TSC SC CdS 87,427,078
E3. Stormwater Infrastructure Staging
The timing of construction is used to determine the impact of inflation on cost, the impact
of forecast reserve balances, and the estimate of financial oversizing (described in the
Section that follows). The City anticipates construction of offsite infrastructure as outlined
in the table below. Note, if this schedule is adjusted in the future, it will be reflected in one of
the annual rate/bylaw updates.
Stormwater Infrastructure Staging
i D a Year of
ead a, -- Construction
6 {Phase 0 - Storm outfall prelim engineering 2024
| 7 |Phase 1 - Centralized stormwater reservoir Phase 1 2026
| 8 |Phase 2 - Outlet forcemain & pump station Phase 1 2027
| 9 |Phase 3 - Centralized stormwater reservoir
expansion Phase 2 2030
| 10 [NW Storm Trunk Phase A 2027
_11_|NW Storm Trunk Phase B1 2022
| 12 |NW Storm Trunk Phase C-VYaterford to Rainbow Fall
UnderDrain 2026
13 {NW Storm Trunk Phase D - Project Deleted
| 14 |NW Storm Trunk Phase E - Splitter MH and Pipe to
|___|Southshore 2026
| 15 |NW Storm Trunk Phase F
| 16 |SW Storm Trunk Phase A 2040
| 17 {SE Storm Trunk Phase A 2050
| 18 [NE Storm Trunk Phase A-E 2028
|_19 [NW Stormwater Trunk Phase B2 2025
| 20 }Land for Centralized facili 2026
| 21 [Rainbow Falls Underdrain 2024
Page | 42
City of Chestermere Offsite Levy Rates Update
*The share of projects beyond the 25-year review period are not included in rates today (see financial
oversizing in next section).
**Costs are inflated to the year of construction using an inflation rate of 4% for the next year, and 3% thereafter.
E4. Stormwater Offsite Infrastructure Benefiting Parties
The stormwater offsite infrastructure previously outlined will benefit various parties to
varying degrees as determined by City staff and engineering advisors. The potential
benefiting parties include:
e City of Chestermere --- that portion of cost which is required to service existing
residents.
e Other Stakeholders - other parties (such as neighboring municipalities) that benefit
from the infrastructure.
e City of Chestermere Future Development (Financial Oversizing) - that portion of cost
which benefits future development beyond the 25-year review period.
e City of Chestermere Future Development (in Rates) - all growth-related
infrastructure (i.e, leviable stormwater infrastructure costs) during the 25-year rate
planning period.
The table below outlines the allocation of stormwater offsite levy infrastructure costs to
benefiting parties. Project allocations were determined by City staff.
Allocation of Stormwater Infrastructure to Benefiting Parties
| Sivek Developer Share
| : -- Reduced Project " " Beyond 25 Yrs | OSL/ Developer
Item Project Description Eutinatwd Cost Muni Share % Stakeholder (Financial Share %
Share oh
| Oversizing %)
6_|Phase 0 - Storm outfall prelim engineering [ss asa7agt CT C--('aLS COM 100.0%
7 [Phase 1 -Centralized stormwaterreservoirPhasei |S 9.172.556] fT 4% 96.0%
__& [Phase 2- Outlet forcemain & pump station Phasei_ |S 30,692,227[ TT 8H 912.0%
| 9 [Phase 3 - Centralized stormwater reservoir expansionPhase2_-|$ 14033981 |i sssidEC"'('é lw 80.0%
_10_|NW Storm Trunk Phase A [S$ 7aagoof 80% 92.0%
11 [NWStormTrunkPhaseB1_-- 8 886,056 [0% 100.0%
__13 [NW Storm Trunk Phase D-ProjectDeleted TS 0% 400.0%
__14 [NW Storm Trunk Phase E -SplitterMH and Pipe to Southshore [$721,725] TT 0% 96.0%
(15 [WAStemmtunkPhase® 00% 400.0%
_16 [SWStormTrunkPhaseA 097712 P| 40.0%
17 [SE Storm TrunkPhaseA 9866964 0.0%
18 [NE StormTrunkPhaseAE TS gsago3f 12.0% 88.0%
19 |NW Stormwater TrunkPhaseB2 Sas OAO TT 0% 100.0%
20 |LandforCentralizedfaciity == 4020906 0% 96.0%
__21 [Rainbow Falls Underdrain SHOT 0% 100.0%
|_100 [Unallocated Offsite Levies CollectedtoDec 31,2016 TS 100.0%,
$ (87,427,078
*Allocations to future development (vs municipal share etc.) were determined by City staff and their
engineering/consulting advisors.
**Financial oversizing is determined by separating out the pro rata portion of developer cost beyond the 25-year
review period, in comparison with the anticipated year of construction. As the years move forward and rates are
updated, these additional developer costs will be included in rate calculations. For example, a project which is
slated to be constructed in year 20 of the 25-year review period will have 20% (5/25) of its costs in rates today,
Page | 43
City of Chestermere Offsite Levy Rates Update
and 80% (20/25) of its costs will sit beyond the 25-year review period.
ES. Existing Receipts & Adjusted Levy Cost
Using the offsite levy share percentages shown in the previous section and applying those
percentages to project costs results in an offsite levy cost of approximately $69.92 million.
However, prior to allocating these costs to benefiting areas, existing offsite levy receipts
collected from developers need to be considered in determining the residual/net costs to
developers. The City has collected $12.09 million in offsite levies to date (0.59 million +
$11.50 million), and results in an adjusted offsite levy cost of approximately $57.82 million.
} . Offsite Levy
, eaik OSL / Developer oe Funds Collected Bdlusteg
Item Project Description Funds Collected - Developer (Levy)
Cost Starting Jan 1,
to Dec 31, 2016 Cost
2017
6 |Phase 0 - Storm outfall prelim engineering $ 1,994729($ - |$ 321,652 | $ 1,573,077
7_|Phase 1 - Centralized stormwater reservoir Phase 1 1$ 8805653/$ - {$s 1,313,142 |$ 7,492,511
8 |Phase 2 - Outlet forcemain & pump station Phase 4 i$ -28,236.849/$ - I$ 5,051,081 |$ 23,185,769
9 |Phase 3 - Centralized stormwater reservoir expansion Phase2 __-- $ 11,227,185/$ - [$s 1,542,186 | $ 9,684,999
10 [NW Storm Trunk Phase A [$ 665,712 $ 290,052 | $ 375,659
11 [NW Storm Trunk Phase B1 $ 1,536,056 $ 504,007 | $ 1,032,049
12. |NW Storm Trunk Phase C-Waterford to Rainbow Fall UnderDrain | $ 1,131,014 $ 717,258 | $ 413,756
13. |NW Storm Trunk Phase D - Project Deleted $ :
14 [NW Storm Trunk Phase E - Splitter MH and Pipe to Southshore --_| $ 692,856 $ 144,042 | $ 548,814
15
16 [SW Storm Trunk Phase A $ 939085/$ - [S$ - [$s 839,085
17_[SE Storm Trunk Phase A § -
18 |NE Storm Trunk Phase A-E $ 7,039114/$ = - [$8 615,885 | $ 6,423,229
19 {NW Stormwater Trunk Phase B2 $ 1,445,040 $ 437,343 | $ 1,007,697
20 |Land for Centralized facility $ 3959571/$ - [S$ 446,604 | $ 3,412,966
21 [Rainbow Falis Underdrain [$ 2544969/$ - [$ - [8 2,544,969
| 100 [Unallocated Offsite Levies Collected to Dec 31, 2016 |$ - |% seg476/$ - '(S$ (589,476)
| $ 69,917,833 | $ $89,476 [$ 11,503,425 |$ 57,824,933
E6. Summary of Stormwater Offsite Levy Cost Flow-through
As shown in the figure below, the total cost for stormwater infrastructure that forms the
basis of the rate is approximately $57.82 million. The cost allocations to each benefitting
party are based on the benefitting percentages shown in Section E4. The offsite levy
balance (due from developers) is allocated to various benefitting areas (as described in
the next section).
Page | 44
City of Chestermere Offsite Levy Rates Update
Total Stormwater Offsite Levy Costs
= Future Less: Levy = OFf-si
Development__ ieee = Off-site
>
$69.92M $12.09M $57.82M
= Future
Development
"Financial
Oversizing"
$17.51M
raise Less: Special = Project = Other
nee Grants & Balance Share
Contributions $87.43M $0.00M
$87.43M $0.00M
= Existing
Development
(City Share)
$0.00M
E7. Stormwater Infrastructure Benefiting Areas
Net developer costs for each project have been allocated to multiple benefiting offsite levy
area (see tables below). Allocations are denoted with a "I" below applicable area numbers.
Benefiting areas were determined by City staff. The lands anticipated to develop over the
25-years in each offsite levy benefitting area are used to determine rates. .
Lt |CSMi-Staget S25 810), LL | fee EME oF EE A 4
[2 |esmi-stae2 Sapp aT ata fa tata yt vata fata tas Ca a a
3 |csmi-Stage3 Say aa Tata t at fT fata) fat atat + aa ta |
4 |csmi-Stage4 Spo) aT Patat [atstat To tstat [ats tat a ta pat a4 |
5 |esmi-StageS Se) aa Patat fatatat PT tatay [ata tat a Pa a fa
6 [Phase 0-Storm outfall prelimengineeing _--[S_ 4,573,077, at 4{ [aia] [atatat f fata] fatatat 1 [afta a |
|_7 [Phase 1 - Centralized stormwater reservoirPhase{S 7.492511 [4/4] [ala] [alaia] [ [ait fatatat a [a fat a |
8 [Phase 2 - Outlet forcemain & pump station Phase|$ 23,185,769" [1/4] [4[a] Tatatst [ [alay fafatat a fa [a [a4 |
|_9 [Phase 3 - Centralized stormwater reservoir expans{$__ 9684999 / [4/4] [aia] [alafta{ fo [afat fatatata | a [a [4 |
| 410 [NW StormTrunkPhaseA TS 75,659) Talat | Tt tt tt ft tata fata ta ta a ts [4 |
11 [NWStormTrunkPhaseB1_ Ss TS 0320497 [Ataf To tT | tT | | ft ft yatat Papa Pat pa Ta
12 [NW Storm Trunk Phase C-Waterfordto Rainbow F{S 413,756) [| [4] [| [ | [ J | fT | ft iat PT pat fat fay
__13 [NW StormTrunkPhaseD-ProjectDeleted [s_- | T TT TT TT
_14 [NW Storm Trunk Phase E - Spitter MH and Pipeto]S 548.8147 [44] 7 | [ | [ [ [ fT [atat [ata fat fat a |
| ASLINWistormiTmunke Phaser USE SPE Pe ee een | ee eee le
16 [SWStormTrunkPhaseA TS 39.085) | | | tat | fT TP
[i7 [SEStormTrunkPhaseA ST a
18 [NEStormTrunkPhaseAE ss [S6423.2291 | T [ fT ft [ [atstat | fT TT fT | ft fat fT ft
L319 [NW Stormwater TrunkPhaseB2 |] S_t,007,697/ [ala] [ | | fT Tt tT tT [atat fatay fat fa ta |
[20 |landforCentralizedfaciity ss S 3.at2,0868| [44] [ala] [atatat To ofatat fata tat a [a [a [4 |
|_21 [Rainbow Fails Underdrain TS 844,969) [Atal [| Tot Tt tT tt tay te tat pa a
100 [Unallocated Offsite Levies Collected to Dec 31, 2011S (589.476) [4[4] Talat fais}at [ fatst fatafat Fy 4 |
$ 57,824,933
Page | 44
City of Chestermere Offsite Levy Rates Update
E8. Reserve Balance
The balance of the City's stormwater reserve at December 31*, 2024 is $7,435,256.40. This
updated balance takes into consideration public facilities fees collected and transferred
to the recreation account, and expenditures up to end~2024.
Stormwater Offsite Levy Reserve Balance
Description Dr cr Balance
Offsite Levy Expenditures to December 31, 2016 $ $ =
Offsite Levy Receipt Allocations to December 31, 2016 $ - $ -
Debenture Interest Expenditure to December 3], 2016 $ - §$ =
Unallocated Receipts to December 31, 2016 $ 589,475.63 $ 589,475.63
Opening Balance $ 589,475.63
2017 $ 589,475.63
Interest on Opening Balance $ 5,894.76 *$ 595,370.39
Project Expenditures (OSL Share) As Reflected by City 3 $ - $ 595,370.39
Net Project Expenditures (OSL Share) In Addition to Amount Reflected $ - $ 595,370.39
By City
Offsite Levy Receipts $ 13,786.32 $ 609,156.71
an Levy Receipts Collected Under Old Agreement or Old 8ylaw (if $ - $ 609,156.71
any
Debenture Interest Expenditure $ a $ 609,156.71
Interest on Project Expenditure $ = $ 609,156.71
Interest on Offsite Levy Receipts $ 68.93 $ 609,225.64
a on Receipts Collected Under Old Agreement or Old Bylaw (if $ = $ 609,225.64
any.
Interest on Debenture Expenditure $ - $ 609,225.64
2018 $ 609,225.64
Interest on Opening Balance $ 12,184.51 $ 621,410.15
Project Expenditures (OSL Share) As Reflected by City $ = $ 621,410.15
Net Project Expenditures (OSL Share) In Addition to Amount Reflected $ - $ 621,410.15
By City
Offsite Levy Receipts $ = $ 621,410.15
i Levy Receipts Collected Under Old Agreement or Old Bylaw (if $ - $ 621,410.15
any
Debenture Interest Expenditure $ = $ 621,410.15
Interest on Project Expenditure $ 3 $ 621,410.15
Interest on Offsite Levy Receipts $ Zz $ 621,410.15
a on Receipts Collected Under Old Agreement or Old 8ylaw (if $ = $ 621,410.15
any
Interest on Debenture Expenditure $ - $ 621,410.15
2019 $ 621,410.15
Interest on Opening Balance $ 12,428.20 $ 633,838.35
Project Expenditures (OSL Share) As Reflected by City $ - $ 633,838.35
Net Project Expenditures (OSL Share) In Addition to Amount Reflected $ a $ 633,838.35
By City
Offsite Levy Receipts $ 142,624.03 $ 776,462.38
aa Levy Receipts Collected Under Old Agreement or Old Bylaw (if $ = $ 776,462.38
any
Debenture Interest Expenditure $ - $ 776,462.38
Interest on Project Expenditure $ - $ 776,462.38
Interest on Offsite Levy Receipts $ 1,426.24 $ 777,888.62
a on Receipts Collected Under Old Agreement or Old Bylaw (if $ = $ 777,888.62
any
Interest on Debenture Expenditure $ - $777,888.62
Page | 45
City of Chestermere Offsite Levy Rates Update
O20 $777,888.62
Interest on Opening Balance $15,557.77 » $793,446.40
Project Expenditures (OSL Share) As Reflected by City $161,084.14 $632,362.26
Net Project Expenditures (OSL Share) In Addition to Amount Reflected $(0.14) $632,362.40
By City
Offsite Levy Receipts $280,547.84 $912,910.24
ca Levy Receipts Collected Under Old Agreement or Old Bylaw (if $- $912,910.24
any
Interest on Project Expenditure $1,248.40 $911,661.84
Interest on Offsite Levy Receipts $2,805.48 $914,467.31
interest on Receipts Collected Under Old Agreement or Old 8ylaw (if $- $914,467.31
any)
2021 '$914,467.31
Interest on Opening Balance $9,144.67 $923,611.99
Project Expenditures (OSL Share) As Reflected by City $1,179,246.73 $(255,634.74)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $0.27 $(255,635.01)
City
Offsite Levy Receipts $523,788.59 $268,153.58
ae Levy Receipts Collected Under Old Agreement or Old Bylaw (if $- $268,153.58
any
Interest on Project Expenditure $7,665.11 $260,488.47
Interest on Offsite Levy Receipts $2,618.94 $263,107.41
interest on Receipts Collected Under Old Agreement or Old Bylaw (if any) $- $263,107.41
0D $263,107.41
Interest on Opening Balance $5,262.15 $268,369.56
Project Expenditures (OSL Share) As Reflected by City $432,824.00 $(164,454.44)
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $- $(164,454.44)
City
Offsite Levy Receipts $706,338.26 $541,883.82
ae Levy Receipts Collected Under Olid Agreement or Old Bylaw (if $541,883.82
any
Interest on Project Expenditure $5,648.35 $536,235.47
Interest on Offsite Levy Receipts $7,063.38 $543,298.85
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if any) > $543,298.85
2023 $543,298.85
interest on Opening Balance $10,865.98 $554,164.83
Project Expenditures (OSL Share) As Reflected by City $511,721.88 $42,442.95
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $(56,047.88) $98,490.83
City
Offsite Levy Receipts $4,518, 190.22 $4,616,681.05
ead Levy Receipts Collected Under Old Agreement or Old Bylaw (if $4,616,681.05
any
interest on Project Expenditure $56,047.88 $4,560,633.17
Interest on Offsite Levy Receipts $45,181.90 $4,605,815.07
Interest on Receipts Collected Under Old Agreement or Oid Bylaw (if any) $- $4,605,815.07
2024 $4,605,815.07
interest on Opening Balance $92,116.30 $ 4,697,931.37
Project Expenditures (OSL Share) As Reflected by City $2,601,230.29 $ 2,096,701.08
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By
City : $ 2,096,701.08
Offsite Levy Receipts $5,318,149.33 $ 7,414,850.41
Offsite Levy Receipts Collected Under Old Agreement or Old Bylaw (if
any} $ 7,414,850.41
Interest on Project Expenditure $32,775.50 $ 7,382,074.91
interest on Offsite Levy Receipts $53,181.49 $ 7,435,256.40
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if any) $ 7,435,256.40
Page | 46
City of Chestermere Offsite Levy Rates Update
ES. Development and Stormwater Infrastructure Staging Impacts
p ging Imp
Stormwater offsite infrastructure will be constructed in staged fashion over the 25-year
review period. We have reviewed the availability of offsite levy funds to meet these
construction requirements and found that offsite levy reserve funds will not be sufficient to
pay for construction of stormwater infrastructure from time to time-front ending of
infrastructure will be required. A front-ender is the party that constructs and pays up front
for infrastructure that benefits other parties. The front-ender (be it a municipality or a
developer) is reimbursed over time as levies are collected, and in accordance with the
municipality's front-ending repayment policies.
To compensate parties for capital they provide in front-ending offsite infrastructure
construction, a 5.04% interest allowance has been charged to the reserve when it is
forecast to be in a negative balance. Further, a 2.00% interest credit has been provided to
the reserve when it is forecast to be in a positive balance. The graph and table below outline
the forecast stormwater levy reserve balances over the 25-year development period.
If necessary, an interest staging adjustment has been applied to rates (slightly positive or
y ging aa] PP gntly p
slightly negative) to ensure that the forecast reserve balance at the end of the 25-year
review period always returns to break-even (i.e, developers are not charged too much
thereby providing a windfall to the City, nor are they charged too little thereby placing an
unequitable burden on taxpayers).
Anticipated Stormwater Offsite Levy Reserve Balances'
$e
| Storm Reserve
|
$15,000,000 ;---- SS,
$10,000,000
$- 7 --e-- Reserve
--
sooo000 | \
fosoonped; Ly
520.000 000) |e
ene
$(35,000,000)
Year
Page | 44
City of Chestermere Offsite Levy Rates Update
Anticipated Stormwater Offsite Levy Reserve Balances
Opening Balance [$ 7,435,256 |
Year Receipts. Expenditure interest Balance
2025 & 7,766,464 $ 5,015,355 $ 203,727 $ 10,390,093
2026 $ 4998778 $ 8095523 $ 145867 $ 7,439,214
2027 & 4,981,141 $20,969,794 $% (430,892) $ (8,980,331)
2028 & 7,441,461 $19,637,219 $ (1,067,275) $ (22,243,364)
2029 $ 5,704,734 $ 3,961,292 $ (1,033,196) $ (21,533,118)
2030 $ 3,960,501 $ 6,507,692 $ (1,213,648) $ (25,293,957)
2031 & 1,696,860 $ 6,702,923 $ (1,527,121) $(31,827,141)
2032 $& 1,143,498 §$ = $ (1,546,456) % (32,230,099)
2033 $& 2,410,681 $ = $ (1,502,899) $ (31,322,316)
2034 $ 3,886,453 $ - $ (1,382,767) $ (28,818,630)
2035 $ 2,379,455 § = $ (1,332,534) $ (27,771,709)
2036 $ 2,446,167 $ - $ (1,276,407) $ (26,601,950)
2037 % 2,773,929 $ = $ (1,200,932) $ (25,028,954)
2038 $ 2,989,794 §$ = $ (1,110,774) $ (23,149,933)
2039 $§ 2,384,488 § zs $ (1,046,578) $ (21,812,024)
2040 $ 3,894,954 $ 1307267 $ (968,907), $(20,193,243)
2041 $ 3,132,966 $ = $ (859,838) $ (17,920,116)
2042 $& 4214792 §$ = $ (690,748) $3 (14,396,072)
2043 & 2,574,338 $ = $ (895,815) $ (12,417,549)
2044 $ 3,277,919 $ = $ (460,637) $ (9,600,267)
2045 $ 2,126,535 $ = $ (376,671) $ (7,850,303)
2046 $ 2,763,518 § = $ (256,374) % (5,343,159)
2047 $ 2,198,593 § é $ (158,486) $ (3,303,051)
2048 $ 1,453,302 § - $ (93,227) $ (1,942,977)
2049 $ 1942977 §$ * $ 0 $ 0
71n determining staging adjustments, the offsite levy model also applies inflation to future rates. In so doing it
acknowledges that rates must keep pace with inflation just as costs do. Also, it acknowledges that an offsite levy
rate of $X paid today is not worth the same as the equivalent $X rate paid in the future (i.e, it is discounted).
Page | 45
City of Chestermere Offsite Levy Rates Update
APPENDIX F: RECREATION OFFSITE INFRASTRUCTURE
Fl. Recreation Offsite Infrastructure Costs
To support future growth, recreation offsite infrastructure is required. The estimated cost of
this infrastructure is based upon: (a) actual construction costs to the cut-off date, (b)
debenture interest associated with financing, and (c) future cost estimates. Total cost is
approximately $121.33 million as outlined in the table below. Actual costs, debenture
interest (if any), and cost estimates were provided by City staff. It is important to note that
these costs represent "gross" costs, of which only a portion will go to support future
development during the 25-year review period. The remainder of this section outlines how
the "net" costs for future development are determined.
Summary of Recreation Offsite Infrastructure
Cost of 3
Future Estimated Cost L
Item Project Description pe Debenture of Work Yet to Bante
| lariat Interest be Completed
"1 |tandPhaset Od -|% ss - _~[S 3,929908/$ 3,929,908
2 |Rec Facility Phase 4 | $ -|G ~~ S 46,534,091
3 |Rec Facility Phase 2, Arenas (3 $ - ee | $ 68,770,000|$ 68,770,000
sheets} |
4 |Land Phase 2 (7 ac | $ -[@ ss - TS 2 100000[$ 2,100,000
100 | Additional Public Facility Fees | $ Sees ee eee
5 - [$$ 124,333,999] $ 121,333,998
*Costs estimates are reflected in current dollars.
**Estimates include engineering costs and contingencies.
***Offsite levy project details, allocations, etc. were determined by City staff and their engineering/consulting
advisors.
**** Project numbering may be out of sequence as rows containing deleted projects are hidden.
F2. Recreation Offsite Infrastructure Grants & Contributions to Date
The MGA enables the City to allocate the costs of offsite infrastructure to future
development, other than those costs that have been provided by way of special grant or
contribution (i.e., contributed infrastructure). The City has/will receive $2.64 million in
special grants and contributions for recreation offsite levy infrastructure as shown in the
table below (note, if the City receives other grants or contributions in the future, it will be
reflected in one of the annual updates and rates adjusted accordingly). The result is that
the total reduced project estimated cost is $118.69 million.
Page | 47
City of Chestermere Offsite Levy Rates Update
Special Grants and Contributions for Recreation Offsite Infrastructure
item Project Description bee a t Provincial Agreement Co atl Bnet Peay
mated Cos Sraeiks Contributions ntributions mated Cost |
[1 Land, Phase 1 = yp A$ 3920008 [ge Pe - |S "= [$3,929,908 |
_2 [Rec Facility Phase 1 [$ 46534091[$ --s--- ~([$ 264ega5/5 ss - * [$43,889,206 |
| 3 |Rec Facility Phase 2, Arenas (3 {$ 68,770,000 PES | eee ers $ 68,770,000
sheets
_4 |Land Phase 2(7 ac [$s 2100000/$ = [SG 2,100,000
(100 [Additional Public Facility Fees Se Ee Fe ee
| $ 121333909/$ - [S$ 2éaasas[$ - TS 148,689,114
F3. Recreation Infrastructure Staging
The timing of construction is used to determine the impact of inflation on cost, the
impact of forecast reserve balances, and the estimate of financial oversizing (described
in the Section that follows). The City anticipates construction of offsite infrastructure as
outlined in the table below. Note, if this schedule is adjusted in the future, it will be
reflected in one of the annual rate/bylaw updates.
Recreation Infrastructure Staging
item : Project Description Year of
Construction
| 1 |Land, Phase 1 2024
| 2 |Rec Facility Phase 1
3. |Rec Facility Phase 2, Arenas (3 sheets) 2045.
4 |Land Phase 2 (7 ac) 2042
*The share of projects beyond the 25-year review period are not included in rates today (see financial oversizing
in next section).
**Costs are inflated to the year of construction using an inflation rate of 3% for the next year, and 3% thereafter.
F4. Recreation Offsite Infrastructure Benefiting Parties
The recreation offsite infrastructure previously outlined will benefit various parties to
varying degrees as determined by City staff and engineering advisors. The potential
benefiting parties include:
e City of Chestermere - that portion of cost which is required to service existing
residents.
e Other Stakeholders - other parties (such as neighboring municipalities) that benefit
from the infrastructure.
e City of Chestermere Future Development (Financial Oversizing) - that portion of cost
Page | 48
City of Chestermere Offsite Levy Rates Update
which benefits future development beyond the 25-year review period.
e City of Chestermere Future Development (in Rates) - all growth-related
infrastructure (i.e., leviable recreation infrastructure costs) during the 25-year rate
planning period.
The table below outlines the allocation of recreation offsite levy infrastructure costs to
benefiting parties. Project allocations were determined by City staff.
Allocation of Recreation Infrastructure to Benefiting Parties
Other Developer Share
+ ae Reduced Project 5 Beyond 25 Yrs | OSL! Developer
item Project Description Estimated Cost Muni Share % Stakeholder (Financial Share %
: Share a
Oversizing %}
1_|Land, Phase 1 x $ 3,929908[ 380% | 0.0% 62.0%
__2 [Rec Facility Phase 1 $43,889,206 38.0% Pp C--"'iL:S 25 59.5%
| 3 |Rec Facility Phase 2, Arenas (3 $ 68,770,000 27.0% ne Fe 58.4% 14.6%
| sheets |
|_4 |Land Phase 2(7 ac $ 2,100,000 Th, a 49.6% 23.4%
100 [Additional Public Facility Fees CE Eee eee ee
| $ 118,689,114
*Allocations to future development (vs municipal share etc.) were determined by City staff and their
engineering/consulting advisors.
"Financial oversizing is determined by separating out the pro rata portion of developer cost beyond the 25-year
review period, in comparison with the anticipated year of construction. As the years move forward and rates are
updated, these additional developer costs will be included in rate calculations. For example, a project which is
slated to be constructed in year 20 of the 25-year review period will have 20% (5/25) of its costs in rates today,
and 80% (20/25) of its costs will sit beyond the 25-year review period.
F5. Existing Receipts & Adjusted Levy Cost
Using the offsite levy share percentages shown in the previous section and applying those
percentages to project costs results in an offsite levy cost of approximately $39.09 million.
However, prior to allocating these costs to benefiting areas, existing offsite levy receipts
collected from developers need to be considered in determining the residual/net costs to
developers. The City has collected $12.27 million ($2.24 million + $10.02 million) in offsite
levies and park facility fees to date, and results in an adjusted offsite levy cost of
approximately $26.82 million.
Page | 49
City of Chestermere Offsite Levy Rates Update
Offsite Levy Funds Collected to Date & Adjusted Levy Cost
Offsite Levy
Public Facility Adjusted
tem Project Description seis pexetoPer | Fees Collected Pa Trapani Developer (Levy)
| to Dec 31, 2021 a "aly Cost
2018
"1 |tand,Phase1 --=--ss--~--"'iL SOO 436 543($ =--S- 1S 53,498 [5 2,383,045
|__2 |Rec Facility Phase 1 |$ 26122855|$ 2244088)$ 6,057,935/$% 17,820,833
3 |Rec Facility Phase 2, Arenas (3 | 10,040,420 Se CRE $ 3,912,772/$ 6,127,648
sheets
(4 |Land Phase 2 (7 ac IE: 490560[$ = - |$ - I$ 490,560
| 100 |Additional Public Facility Fees [ss - [S@ - Ts - {gs _- _--id
[$ 39,090,378 | $ 244,088 [$ 10,024,204|$ 26,822,087
F6. Summary of Recreation Offsite Levy Cost Flow-through
As shown in the figure below, the total cost for recreation infrastructure that forms
the basis of the rate is approximately $24.69 million. The cost allocations to each
benefitting party are based on the benefitting percentages shown in Section F4.
The offsite levy balance (due from developers) is allocated to various benefitting
areas (as described in the next section).
Total Recreation Offsite Levy Costs
= Future Less: Levy ST Orecite
Development Receipts Balance*
(OSL Share) Applied ¢96.82M
$39.09M $12.27M p20.
= Future
Development
"Financial
Oversizing"
$42.29M
Less: Special
Project Grants & = Project = Other
Costs Contributions Balance Share
$121.33M $2.64M $118.69M $0.00M
= Existing
Development
(City Share)
$37.31M
Page | 50
City of Chestermere Offsite Levy Rates Update
F7. Recreation Infrastructure Benefiting Areas
Net developer costs for each project have been allocated to multiple benefiting offsite levy
area (see tables below). Allocations are denoted with a "1" below applicable area numbers.
Benefiting areas were determined by City staff. The lands anticipated to develop over the
25-years in each offsite levy benefitting area are used to determine rates.
Benefiting Areas for Recreation Offsite Infrastructure
Developer
Re Se ee
| 2 |RecFacilityPhasel | $ 17,820803 | 1] 1 [TP rit [atari atta tia ii ia iii i [i [ttt
[> segs eer (| A LOA RA ET
sheets
Land Phase 2 (7ac | $avoseo [UIA [vie iv inte [etry iy iy ety iy ities [titty yy |
F8. Reserve Balance
The balance of the City's recreation reserve at December 33%, 2024 is approximately $12,931
million. This updated balance takes into consideration public facilities fees collected and
transferred to the recreation account, and expenditures up to end-2024.
Recreation Offsite Levy Reserve Balance
2019 $ -
Interest on Opening Balance $ = $ >
Project Expenditures (OSL Share) As Reflected by City : $ - § =
ae Project Expenditures (OSL Share) In Addition to Amount Reflected By - $ 2 "§$ =
ity -
Offsite Levy Receipts $ 305,200.23 $ 305,200.23
Public Facilities Fees Added To Rec Levy Account $ 2,243,289.63 $ 2 $ 2,548,489.86
Debenture Interest Expenditure $ " $ 2,548,489.86
Interest on Project Expenditure $ - $2,548,489.86
Interest on Offsite Levy Receipts $ 3,052.00 $ 2,551,541.86
we on Receipts Collected Under Old Agreement or Old Bylaw (if $ 22,432.90 $ 2,573,974.76
any
Interest on Debenture Expenditure $ = $ 2,573,974.76
2020 $2,573,974.76
Interest on Opening Balance $51,479.50 > $2,625,454.25
Project Expenditures (OSL Share) As Reflected by City $- $2,625,454.25
nee Project Expenditures (OSL Share) In Addition to Amount Reflected By $- $2,625,454.25
ty
Offsite Levy Receipts $644,729.83 $3,270,184.08
Public Facilities Fees Added To Rec Levy Account $278,797.50 $3,548,981.58
Interest on Project Expenditure $= $3,548,981.58
Interest on Offsite Levy Receipts $6,447.30 $3,555,428.88
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if $2,787.98 $3,558,216.86
any)
2021 $3,558,216.86
Interest on Opening Balance $35,582.17 $3,593,799.03
Project Expenditures (OSL Share) As Reflected by City $- $3,593,799.03
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $- $3,593,799.03
City
Offsite Levy Receipts $1,246,776.78 $4,840,575.81
Public Facilities Fees Added To Rec Levy Account $122,000.00 $4,962,575.81
Interest on Project Expenditure $- $4,962,575.81
Interest on Offsite Levy Receipts $6,233.88 $4,968,809.69
Page | 51
City of Chestermere Offsite Levy Rates Update
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if $610.00 $4,969,419.69
2022 $4,969,419.69
Interest on Opening Balance $99,388.39 $5,068,808.08
Project Expenditures (OSL Share) As Reflected by City $- $5,068,808.08
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $- $5,068,808.08
City
Offsite Levy Receipts $1,474,636.67 $6,543,444.76
Public Facilities Fees Added To Rec Levy Account $6,543,444.76
Interest on Project Expenditure oe $6,543,444.76
Interest on Offsite Levy Receipts $14,746.37 $6,558,191.12
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if $6,558,191.12
2023 $6,556, 191.12
Interest on Opening Balance $137,982.28 $6,696, 173.40
Project Expenditures (OSL Share) As Reflected by City $- $6,696,173.40
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $- $6,696, 173.40
City
Offsite Levy Receipts $3,178,515.85 $9,874,689.25
Public Facilities Fees Added To Rec Levy Account $9,874,689.25
Interest on Project Expenditure $- $9,874,689.25
Interest on Offsite Levy Receipts $31,785.16 $9,906,474.41
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if $9,906,474.41
any)
2024 $ 9,906,474.41
Interest on Opening Balance $204,947.94 $ 10,111,422.35
Project Expenditures (OSL Share) As Reflected by City $ 10,111,422.35
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By 1
City ; $ 10,111,422.35
Offsite Levy Receipts $2,773,547.35 $ 12,884,969.70
Public Facilities Fees Added To Rec Levy Account $ 12,884,969.70
Interest on Project Expenditure $ 12,884,969.70
Interest on Offsite Levy Receipts $27,735.47 $ 12,912,705.17
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if
any) $ 12,912,705.17
F9. Development and Recreation infrastructure Staging impacts
Recreation offsite infrastructure will be constructed in staged fashion over the 25-year
review period. We have reviewed the availability of offsite levy funds to meet these
construction requirements and found that offsite levy reserve funds will not be sufficient to
pay for construction of recreation infrastructure from time to time--front ending of
infrastructure will be required. A front-ender is the party that constructs and pays up front
for infrastructure that benefits other parties. The front-ender (be it a municipality or a
developer) is reimbursed over time as levies are collected, and in accordance with the
municipality's front-ending repayment policies.
To compensate parties for capital they provide in front-ending offsite infrastructure
construction, a 5.04% interest allowance has been charged to the reserve when it is
forecast to be in a negative balance. Further, a 2.00% interest credit has been provided to
the reserve when it is forecast to be in a positive balance. The graph and table below outline
the forecast recreation levy reserve balances over the 25-year development period.
If necessary, an interest staging adjustment has been applied to rates (slightly positive or
slightly negative) to ensure that the forecast reserve balance at the end of the 25-year
review period always returns to break-even (i.e.,, developers are not charged too much
thereby providing a windfall to the City, nor are they charged too little thereby placing an
Page | 52
City of Chestermere Offsite Levy Rates Update
unequitable burden on taxpayers).
Anticipated Recreation Offsite Levy Reserve Balances®
Recreation Reserve
| mm Los
mem A
$10,000,000 a | --*-- Reserve
Balance
so0000 [Nee
° Lt id
e\ees 5 2 9 es
oo ea fs 8
ih
$(15,000,000)
Year
Page | 53
City of Chestermere Offsite Levy Rates Update
Anticipated Recreation Offsite Levy Reserve Balances
Opening Balance [$12,912,705 |
Year Receipts Expenditure Interest Balance
2025 $ 3,168,881 $ 2436543 $G 272901 $13,917,944
2026 $ 1,939,287 $13,453,271 $ 48,079 $ 2452039
2027 $ 1,932,015 $13,856,869 % (477,430) $ (9,950,244)
2028 $ 3,299,952 § = & (335,175) $ (6,985,468)
2029 $ 2,291,152 §$ = $ (236,594) $ (4,930,910)
2030 $ 1,546,889 §$ = & (170,555) $ (3,554,576)
2031 $ 747,324 $ - & (141,485) % (2,948,737)
2032 & 558614 §$ > & (120,462) $ (2,510,585)
2033 $ 1,087,318 $ = $ (71,733) & (1,494,999)
2034 $ 1,577,246 $ = $ 1,645 $ 83,892
2035 $ 1,099,224 §% ¥ $ 23,662 $ 1,206,778
2036 $ 1,032,693 $ = $ 44.789 $ 2,284,260
2037 $ 1,249,282 §$ = & 70,671 & 3,604,213
2038 $ 1,286,760 $ = $ 97,819 $ 4,988,793
2039 $ 1,054,881 $ = $ 120,873 $ 6,164,547
2040 $ 1,643,721 $ 2 $ 156,165 $ 7,964,433
2041 $ 1,377,382 $ = $ 186,836 $ 9,528,652
2042 $ 1,779,291 G 810821 $ 209,942 $10,707,065
2043 $ 1,109,952 $ = $ 236,340 $12,053,357
2044 $ 1,406,644 $ = $ 269,200 $13,729,201
2045 $ 952116 $18,134,115 $ (174,021) $ (3,626,819)
2046 $ 1,194,911 $ iS & (122568) $ (2,554,476)
2047 $ 1,027,231 $ = & (76,973) $ (1,604,218)
2048 $ 705,836 $ 5 & (45,278) $ (943,660)
2049 $ 943,660 & 2 $ (0) $ 0
8 in determining staging adjustments, the offsite levy model also applies inflation to future rates. In so doing it
acknowledges that rates must keep pace with inflation just as costs do. Also, it acknowledges that an offsite levy
rate of $X paid today is not worth the same as the equivalent $X rate paid in the future (i.e., it is discounted).
Page | 54
City of Chestermere Offsite Levy Rates Update
APPENDIX G: FIRE STATIONS OFFSITE INFRASTRUCTURE
Gl. Fire Offsite Infrastructure Costs
To support future growth, fire facility offsite infrastructure is required. The estimated cost of
this infrastructure is based upon: (a) actual construction costs to the cut-off date, (b)
debenture interest associated with financing, and (c) future cost estimates. Total cost is
approximately $14.74 million as outlined in the table below. Actual costs, debenture interest
(if any), and cost estimates were provided by City staff. It is important to note that these
costs represent "gross" costs, of which only a portion will go to support future development
during the 25-year review period. The remainder of this section outlines how the "net" costs
for future development are determined.
Summary of Fire Offsite Infrastructure
|
Cost of f
Future Estimated Cost .
item Project Description 'Completed Work| Debenture | of Work Yetto | _'0ta! Project
& Historical Estimated Cost
interest be Completed
interest
1 [PurchaseLand $ _ -{8 - |$ 1836,000/5 1,836,000
2_|Fire Hall 117 L$ 33157/$ sss - =| 11,948.843/5 11,982,000
3. [Fire Hall 117 Training Facility Ts -|$ ss -_--{S 922,500 | $ 922.500
$ 33157 |$ ss - $14,707,343 $ 14,740,500
*Costs estimates are reflected in current dollars.
**Estimates include engineering costs and contingencies.
"Offsite levy project details, allocations, etc. were determined by City staff and their engineering/consuiting
advisors.
**** Project numbering may be out of sequence as rows containing deleted projects are hidden.
G2. Fire Offsite Infrastructure Grants & Contributions to Date
The MGA enables the City to allocate the costs of offsite infrastructure to future
development, other than those costs that have been provided by way of special grant or
contribution (i.e., contributed infrastructure). The City has/will receive $0.00 million in
special grants and contributions for fire offsite levy infrastructure as shown in the table
below (note, if the City receives other grants or contributions in the future, it will be reflected
in one of the annual updates and rates adjusted accordingly). The result is that the total
reduced project estimated cost is $14.74 million.
Page | 53
City of Chestermere Offsite Levy Rates Update
Special Grants and Contributions for Fire Offsite Infrastructure
i Special Developer '
= 2 Total Project ee Other Reduced Project
item Project Description = Provincial Agreement 4 :
|
1 |PurchaseLand : ' __|[$ 1,836,000] $ |: Dae a | -|% 1,836,000
_2 [Fire Hall 117 fs ti9s2000/$ = [sO B- 19,982,000 |
__3 |FireHall 117 TrainingFacility Cd 8500S 922.500]
[$ 14740500[$ = TS -CS 14,740,500 |
G3. Fire Infrastructure Staging
The timing of construction is used to determine the impact of inflation on cost, the impact
of forecast reserve balances, and the estimate of financial oversizing (described in the
Section that follows). The City anticipates construction of offsite infrastructure as outlined
in the table below. Note, if this schedule is adjusted in the future, it will be reflected in one of
the annual rate/bylaw updates.
Fire Infrastructure Stagin
item Project Description Saediae tees
| 1 |Purchase Land 2025
| 2 {Fire Hall 117 2026
|
__3 | Fire Hall 117 Training Facili 2026
*The share of projects beyond the 25-year review period are not included in rates today (see financial oversizing
in next section).
**Costs are inflated to the year of construction using an inflation rate of 3% for the next year, and 3% thereafter.
G4. Fire Offsite Infrastructure Benefiting Parties
The fire offsite infrastructure previously outlined will benefit various parties to varying
degrees as determined by City staff and engineering advisors. The potential benefiting
parties include:
e City of Chestermere -- that portion of cost which is required to service existing
residents.
e Other Stakeholders - other parties (such as neighboring municipalities) that benefit
from the infrastructure.
e City of Chestermere Future Development (Financial Oversizing) - that portion of cost
Page | 54
City of Chestermere Offsite Levy Rates Update
which benefits future development beyond the 25-year review period.
e City of Chestermere Future Development (in Rates) - all growth-related
infrastructure (i.e., leviable recreation infrastructure costs) during the 25-year rate
planning period.
The table below outlines the allocation of fire offsite levy infrastructure costs to benefiting
parties. Project allocations were determined by City staff.
Allocation of Fire Infrastructure to Benefiting Parties
Other Developer Share
Le Reduced Project Beyond 25 ¥rs
item Project Description Estimated Cost Muni Share % Stakeholder (Financial
Share %,)
Oversizing $s}
1 [Purchase Land _ _|3 1,835,000 00%
| 2 |Fire Hall 117 $ 11982000; #&#| | 4.0%
| 3 [Fire Hall 117 Training Facili $ g22500; CT Ci'CC*d 4.0%
$14,740,506 ,
*Allocations to future development (vs municipa! share etc.) were determined by City staff and their
engineering/consulting advisors.
**Financial oversizing is determined by separating out the pro rata portion of developer cost beyond the 25-year
review period, in comparison with the anticipated year of construction. As the years move forward and rates are
updated, these additional developer costs will be included in rate calculations. For example, a project which is
slated to be constructed in year 20 of the 25-year review period will have 20% (5/25) of its costs in rates today,
and 80% (20/25) of its costs will sit beyond the 25-year review period.
G5. Existing Receipts & Adjusted Levy Cost
Using the offsite levy share percentages shown in the previous section and applying those
percentages to project costs results in an offsite levy cost of approximately $14.22 million.
However, prior to allocating these costs to benefiting areas, existing offsite levy receipts
collected from developers need to be considered in determining the residual/net costs to
developers. The City has collected $1.49 million in offsite levies to date, and results in an
adjusted offsite levy cost of approximately $12.74 million.
Offsite Levy Funds Collected to Date & Adjusted Levy Cost
- Offsite Levy 4
Offsite Levy Adjusted
item) Project Description OSL! Developer Funds Collected "ede tes ¢- Developer {Levy}
= to Dec 341, 2016 at a Cost
2017
1 |PurchaseLand _--sd«d({ 1 836000/$ = - --S«d(S 199,640|$ 1,636,360
|_ 2 _|Fire Hall 117 $ 11502720/$ - |[$ 1286,660/5 10,216,060
| 3 [Fire Hall 117 Training Facili 5 g85.600|/5 - [S$ °° #£- [S$ 885,500
| $ 142243201 $s 1,486,299[$ 12,738,021
Page | 55
City of Chestermere Offsite Levy Rates Update
G6. Summary of Fire Offsite Levy Cost Flow-through
As shown in the figure below, the total cost for fire infrastructure that forms the basis of the
rate is approximately $12.74 million. The cost allocations to each benefitting party are
based on the benefitting percentages shown in Section F4. The offsite levy balance (due
from developers) is allocated to various benefitting areas (as described in the next section).
Total Fire Offsite Levy Costs
= Future Less: Levy OR Zcte
Development Receipts Balance*
(OSL Share) Applied $12.74M
$14.22M $139!
= Future
Development
"Financial
Oversizing"
$0.52M
Less: Special
Project Grants & = Project = Other
Costs Contributions Balance ; Share
$14.74M $0 $14.74M $0.00M
= Existing
Development
(City Share)
$0.00M
G7. Fire Infrastructure Benefiting Areas
Net developer costs for each project have been allocated to multiple benefiting offsite levy
area (see tables below). Allocations are denoted with a "1" below applicable area numbers.
Benefiting areas were determined by City staff. The lands anticipated to develop over the
25-years in each offsite levy benefitting area are used to determine rates.
Benefiting Areas for Fire Offsite Infrastructure
ac see ae eae] epee neat |
Se ee ee
a i
[3 [Fire Hall 17 Training Facility | $__8ase00 | 1] 1] tri titre y ite iti tite t yaaa it att
G8. Reserve Balance
Page | 56
City of Chestermere Offsite Levy Rates Update
The balance of the City's fire reserve at December 31, 2024 is $1,490,169.38. This updated
balance takes into consideration public facilities fees collected and transferred to the fire
account, and expenditures up to end-2024.
Fire Offsite Levy Reserve Balance
2023 $-
Interest on Opening Balance $-
Project Expenditures (OSL Share) As Reflected by City $- $-
Nat Project Expenditures (OSL Share) In Addition to Amount Reflected By $357,188.92 $357,188.92
ity
Offsite Levy Receipts $- $357,188.92
Public Facilities Fees Added To Rec Levy Account $- $357,188.92
Interest on Project Expenditure $- $357,188.92
Interest on Offsite Levy Receipts $3,571.89 $360,760.81
pees on Receipts Collected Under Old Agreement or Old Bylaw (if $- $360,760.81
any
0 § 360,760.81
interest on Opening Balance $22,582.21 $ 383,343.02
Project Expenditures (OSL Share) As Reflected by City $33,157.35 $ 350,185.67
Net Project Expenditures (OSL Share) In Addition to Amount Reflected By $1,129, 110.39
City . 3% 1,479,296.06
Offsite Levy Receipts $ 1,479.296.06
Public Facilities Fees Added To Rec Levy Account $ 1,479,296.06
Interest on Project Expenditure $417.78 $ 1,478,878.28
Interest on Offsite Levy Receipts $11,291.10 $ 1,490,169.38
Interest on Receipts Collected Under Old Agreement or Old Bylaw (if
any) $ 1,490,169.38
G9. Development and Fire Infrastructure Staging Impacts
Fire offsite infrastructure will be constructed in staged fashion over the 25-year
review period. We have reviewed the availability of offsite levy funds to meet these
construction requirements and found that offsite levy reserve funds will not be
sufficient to pay for construction of fire infrastructure from time to time--front
ending of infrastructure will be required. A front-ender is the party that constructs
and pays up front for infrastructure that benefits other parties. The front-ender (be
it a municipality or a developer) is reimbursed over time as levies are collected,
and in accordance with the municipality's front-ending repayment policies.
To compensate parties for capital they provide in front-ending offsite
infrastructure construction, a 5.04% interest allowance has been charged to the
reserve when it is forecast to be in a negative balance. Further, a 2.00% interest
credit has been provided to the reserve when it is forecast to be in a positive
balance. The graph and table below outline the forecast fire levy reserve balances
over the 25-year development period.
If necessary, an interest staging adjustment has been applied to rates (slightly
positive or slightly negative) to ensure that the forecast reserve balance at the end
Page | 57
City of Chestermere Offsite Levy Rates Update
of the 25-year review period always returns to break-even (i.e., developers are not
charged too much thereby providing a windfall to the City, nor are they charged
too little thereby placing an unequitable burden on taxpayers).
Anticipated Fire Offsite Levy Reserve Balances®
Fire Reserve
$-
Ss § § 8 sare § Saore
we $(6,000,000) eG OSSs -- . . OG
$(12,000,000)
Year
Anticipated Fire Offsite Levy Reserve Balances
Opening Balance | $ 1,490,169
Year Receipts Expenditure Interest Balance
2025 & 1,687,558 $ 1,836,000 $ 26,835 6 1,368,562
2026 & 1,032,749 $ 9569977 $ (361,301) $ (7,529,967)
2027 & 1,028,877 $ 3.285692 $ (493,254) @4HHHAAAAH
2028 $ 1,757,358 § = $ (429,543) $ (8,952,222)
2029 $ 1,220,131 $ 7 $ (389,697) & (8,121,788)
2030 & 823,781 §$ - $ (367,820) $ (7,665,826)
2031 & 397,981 $ 5g $ (366,299) $ (7,634,145)
2032 G$ 297,485 §$ 5 & (369,768) $ (7,706,428)
2033 & 579,041 $ E $ (359,220) $ (7,486,607)
2034 & 839,947 § = & (334,992) $ (6,981,652)
2035 & 585,381 § = $ (322,372) $ (6,718,642)
2036 & 549951 § = % (310,902) $ (6,479,593)
2037 & 665,293 § = $ (293,041) &% (6,107,340)
2038 & 685,252 §$ A $ (273,273) $ (5,695,362)
2039 § 561767 $ - $ (258,733) $ (5,392,328)
2040 $§ 875,348 $ - $ (227,656) $ (4,744,635)
2041 $ 733,512 % = $ (202,161) $ (4,213,284)
2042 & 947545 § z $ (164,593) $ (3,430,333)
2043 $ 591,095 $ = & (143,098) $ (2,982,335)
2044 & 749095 $ = $ (112,555) $ (2,345,796)
2045 $ 507,040 § = $ (92,673) $ (1,931,429)
2046 $ 635,339 $ = $ (65,273) $ (1,360,362)
2047 $ 547,042 § - $ (40,991) % (854,311)
2048 & 375,886 § = $ (24113) $ (502,538)
2049 $ 502538 $ = $ 0 $ 0
8 In determining staging adjustments, the offsite levy model also applies inflation to future rates. In so
doing it acknowledges that rates must keep pace with inflation just as costs do. Also, it acknowledges
that an offsite levy rate of $X paid today is not worth the same as the equivalent $X rate paid in the
future (ie., it is discounted).
Page | 58
City of Chestermere Offsite Levy Rates Update
APPENDIX H: LIBRARY OFFSITE INFRASTRUCTURE
HI. Library Offsite Infrastructure Costs
To support future growth, library offsite infrastructure is required. The estimated cost of this
infrastructure is based upon: (a) actual construction costs to the cut-off date, (b)
debenture interest associated with financing, and (c) future cost estimates. Total cost is
approximately $24.00 million as outlined in the table below. Actual costs, debenture
interest (if any), and cost estimates were provided by City staff. It is important to note that
these costs represent "gross" costs, of which only a portion will go to support future
development during the 25-year review period. The remainder of this section outlines how
the "net" costs for future development are determined.
Summary of Library Offsite Infrastructure
Cost of a
} Future Estimated Cost :
item Project Description Te ee Debenture of Work Yet to aoe hel
internat interest be Completed
1 |New Library @27,400sf | $ _-|[g TS 23,000,000] $ 23,000,000
2 [Land Purchase $ -[§ - [$ 1,000,000|$ 1,000,000 |
$ - |¢ --- ~[$ 24 000,000/§ 24,000,000
*Costs estimates are reflected in current dollars.
**Estimates include engineering costs and contingencies.
***Offsite levy project details, allocations, etc. were determined by City staff and their engineering/consulting
advisors.
**** Project numbering may be out of sequence as rows containing deleted projects are hidden.
H2. Library Offsite Infrastructure Grants & Contributions to Date
The MGA enables the City to allocate the costs of offsite infrastructure to future
development, other than those costs that have been provided by way of special grant or
contribution (ie., contributed infrastructure). The City has/will receive $0.00 million in
special grants and contributions for library offsite levy infrastructure as shown in the table
below (note, if the City receives other grants or contributions in the future, it will be reflected
in one of the annual updates and rates adjusted accordingly). The result is that the total
reduced project estimated cost is $24.00 million.
Page | 59
City of Chestermere Offsite Levy Rates Update
Special Grants and Contributions for Library Offsite Infrastructure
' aoe Total Project es Other Reduced Project
item Project Description = Provincial Agreement : nae
Estimated Cost Grants Contributions Contnbutions | Estimated Cost
1 |New Library@27,.400sf | $ 23,000,000 a oe AE resi ___ = [$ 23,000,000
_2 |Land Purchase 1$ _1,000.000;/$ =F - [@ - |$ ~~ -[$ 1,000,000
| '$ 2aoo0o00|/g - [¢ - ~[s $24,000,000
H3. Library Infrastructure Staging
The timing of construction is used to determine the impact of inflation on cost, the impact
of forecast reserve balances, and the estimate of financial oversizing (described in the
Section that follows). The City anticipates construction of offsite infrastructure as outlined
in the table below. Note, if this schedule is adjusted in the future, it will be reflected in one of
the annual rate/bylaw updates.
Library Infrastructure Stagin
Item Project Description ake
Construction
| 1 |New Library @27,400 st 2028
|
2 |Land Purchase
*The share of projects beyond the 25-year review period are not included in rates today (see financial oversizing
in next section).
**Costs are inflated to the year of construction using an inflation rate of 3% for the next year, and 3% thereafter.
H4. Library Offsite Infrastructure Benefiting Parties
The library offsite infrastructure previously outlined will benefit various parties to varying
degrees as determined by City staff and engineering advisors. The potential benefiting
parties include:
e City of Chestermere -- that portion of cost which is required to service existing
residents.
e Other Stakeholders - other parties (such as neighboring municipalities) that benefit
from the infrastructure.
* City of Chestermere Future Development (Financial Oversizing) - that portion of cost
which benefits future development beyond the 25-year review period.
e City of Chestermere Future Development (in Rates) - all growth-related
infrastructure (ie., leviable recreation infrastructure costs) during the 25-year rate
planning period.
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City of Chestermere Offsite Levy Rates Update
The table below outlines the allocation of library offsite levy infrastructure costs to
benefiting parties. Project allocations were determined by City staff.
Allocation of Library Infrastructure to Benefiting Parties
|
| Other Developer Share
* ees Reduced Project 2 Beyond 25 Yrs
Hem Project Description | Estimated Cost Muni Share % gt nae! (Financial
j Oversizing %)
1_|New Library @27,400 sf $ 23,000,000 57.0% ee ee
| 2 [Land Purchase |$ 1,000,000] _57.0% | si] 3.4%
$ 24,000,000
*Allocations to future development (vs municipal share etc.) were determined by City staff and their
engineering/consulting advisors.
**Financial oversizing is determined by separating out the pro rata portion of developer cost beyond the 25-year
review period, in comparison with the anticipated year of construction. As the years move forward and rates are
updated, these additional developer costs will be included in rate calculations. For example, a project which is
slated to be constructed in year 20 of the 25-year review period will have 20% (5/25) of its costs in rates today,
and 80% (20/25) of its costs will sit beyond the 25-year review period.
H5. Existing Receipts & Adjusted Levy Cost
Using the offsite levy share percentages shown in the previous section and applying those
percentages to project costs results in an offsite levy cost of approximately $9.10 million.
However, prior to allocating these costs to benefiting areas, existing offsite levy receipts
collected from developers need to be considered in determining the residual/net costs to
developers. The City has collected $0.00 million in offsite levies to date, and results in an
adjusted offsite levy cost of approximately $9.10 million.
Offsite Levy Funds Collected to Date & Adjusted Levy Cost
: Offsite Levy -
i Offsite Levy Adjusted
item Project Description | OSL 1 DevelOPeT | Funds Collected | Fans COUCICS | Developer (Levy)
to Dec 31, 2016 9 ant Cost
| 2017
1_|New Library @27,400 sf _ CdS 8,703,200 | 5 _ = _|$ -_ |$ 8,703,200
2_|Land Purchase | $ 395,600/$ - |S - |S 395,600
$ gooaso0/$ -- - s[$ 9,098,800
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City of Chestermere Offsite Levy Rates Update
H6. Summary of Library Offsite Levy Cost Flow-through
As shown in the figure below, the total cost for fire infrastructure that forms the basis of the
rate is approximately $9.10 million. The cost allocations to each benefitting party are based
on the benefitting percentages shown in Section F4. The offsite levy balance (due from
developers) is allocated to various benefitting areas (as described in the next section).
Total Library Offsite Levy Costs
= Future Less: Levy = Off-site
Development|» fiENgealae Balance*
(OSL Share) Ages $9.10M
$0M Lk
$9.10M
= Future
Development
"Financial
Oversizing"
$1.22M
Less: Special ,
Project Grants & = Project = Other
Costs Contributions Balance ; Share
$24.00M $0 $24.00M $0.0M
= Existing
Developmen
(City Share)
$0.0M
H7. Library Infrastructure Benefiting Areas
Net developer costs for each project have been allocated to multiple benefiting offsite levy
area (see tables below). Allocations are denoted with a "1" below applicable area numbers.
Benefiting areas were determined by City staff. The lands anticipated to develop over the
25-years in each offsite levy benefitting area are used to determine rates.
Benefiting Areas for Library Offsite Infrastructure
Abteee ccs. 2 COMM MMM sun
| 1 [NewLibrary @27.400sf | $8,703,200 | Vata Tra [ray tata ty tatty ia fafa aa tay ye |
[| 2 |landPurchase | 395.600 | TT TT afr fate pate aia fafa t fate aja tai iy yt |
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City of Chestermere Offsite Levy Rates Update
H8. Reserve Balance
The balance of the City's library reserve at December 31*, 2024 is $0.00 million. No off site
levies have been collected for the library facility yet.
Library Offsite Levy Reserve Balance
7
Interest on Opening Balance $-
Project Expenditures (OSL Share) As Reflected by City $- $-
i Project Expenditures (OSL Share) In Addition to Amount Reflected By $- $-
!
Offsite Levy Receipts $- $-
Public Facilities Fees Added To Rec Levy Account $- . $-
Interest on Project Expenditure $- $-
Interest on Offsite Levy Receipts $- $-
interest on Receipts Collected Under Old Agreement or Old Bylaw (if $- $-
any
H9. Development and Library Infrastructure Staging Impacts
Library offsite infrastructure will be constructed in staged fashion over the 25-year
review period. We have reviewed the availability of offsite levy funds to meet these
construction requirements and found that offsite levy reserve funds will not be
sufficient to pay for construction of library infrastructure from time to time--front
ending of infrastructure will be required. A front-ender is the party that constructs
and pays up front for infrastructure that benefits other parties. The front-ender (be
it a municipality or a developer) is reimbursed over time as levies are collected,
and in accordance with the municipality's front-ending repayment policies.
To compensate parties for capital they provide in front-ending offsite
infrastructure construction, a 5.04% interest allowance has been charged to the
reserve when it is forecast to be in a negative balance. Further, a 2.00% interest
credit has been provided to the reserve when it is forecast to be in a positive
balance. The graph and table below outline the forecast fire levy reserve balances
over the 25-year development period.
If necessary, an interest staging adjustment has been applied to rates (slightly
positive or slightly negative) to ensure that the forecast reserve balance at the end
of the 25-year review period always returns to break-even (i.e., developers are not
charged too much thereby providing a windfall to the City, nor are they charged
too little thereby placing an unequitable burden on taxpayers).
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City of Chestermere Offsite Levy Rates Update
Anticipated Library Offsite Levy Reserve Balances"
Library Reserve
a oe
$2,000,000 Zs
- , --?e-- Reserve
i a
36 00000) |} 8
seoo0) || eee
$(5,000,000) | lwo |)|)tt"té'™SOSOSOCCO#C#CS
$(6,000,000) e
peepee Di A
Year
Anticipated Library Offsite Levy Reserve Balances
; Opening Balance | $ =
Year Receipts Expenditure Interest Balance
2025 $ 1,181,521 §$ - $ 23,630 $ 1,205,151
2026 $ 723,065 §$ = $ 38,564 $ 1,966,781
2027 $ 720,354 $ 419,692 $ 45,349 $ 2,312,792
2028 $ 1,230,391 $ 9510222 $ (300,739) % (6,267,778)
2029 $ 854259 § - & (272,841) $ (5,686,361)
2030 $ 576,759 §$ - $ (257,524) $ (5,367,125)
2031 $ 278,641 § - $ (256,460) $ (5,344,944)
2032 $ 208,280 $ = & (258,888) $ (6,395,552)
2033 $ 405,408 § = & (251,503) $ (5,241,648)
2034 $ 588,078 §$ " $3 (234,540) & (4,888,110)
2035 $ 409,847 §$ a & (225,704) 5% (4,703,967)
2036 $ 385,041 $§$ - & (217,674) % (4,536,600)
2037 $ 465,796 $ = & (205,169) % (4,275,972)
2038 $ 479,770 $ - $ (191,329) $ (3,987,531)
2039 $ 393,314 §$ - & (181,149) § (3,775,366)
2040 $ 612,863 $ 5 $ (159,390) $ (3,321,893)
2041 $ 513,559 § = & (141,540) $ (2,949,874)
2042 $ 663,411 § 2 $ (115,238) $ (2,401,701)
2043 $ 413,847 §$ = $ (100,188) & (2,088,042)
2044 $ 524469 $§$ = & (78,804) $ (1,642,377)
2045 $ 354997 $ a $ (64884) $ (1,352,264)
2046 $ 445524 § = $ (45,700) $ (952,439)
2047 $ 383,004 §$ - $ (28,700) $ (598,135)
2048 $ 263,172 $ = $ (16,882) & (351,845)
2049 $ 351,845 §$ - $ (0) & (0)
'In determining staging adjustments, the offsite levy model also applies inflation to future rates. In so
doing it acknowledges that rates must keep pace with inflation just as costs do. Also, it acknowledges
that an offsite levy rate of $X paid today is not worth the same as the equivalent $X rate paid in the
future (ie., it is discounted).
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City of Chestermere Offsite Levy Rates Update
APPENDIX H: RATE COMPARISON
The table below compares the City of Chestermere offsite levy rates to rates in
other municipalities.
City of Beaumont Residential (roads, water, sewer) $53,951 - $77,595 (2022)
City of Beaumont Commercial/ Industrial (roads, water, sewer) $80,900 - $116,390 (2019)
City of Lacombe (roads, water, sewer, storm) $33,572 - $97,060 (2024)
City of Brooks (water, sewer, storm) $56,164 -- 116,746 (2023)
City of Spruce Grove (roads, water, sewer) $105,318 -- 149,410 (2023)
City of Fort Saskatchewan (South Fort) (roads, water, sewer, storm) $29,961 -- 61,904 (2019)
City of Cold Lake (roads, water, sewer, storm) $86,635 - 137,144 (2016)
City of Lloydminster (roads, water, sewer, storm) $163,015 (2024)
City of Medicine Hat (roads, sewer, storm, water) $48,813 - $168,307(2022)
Town of Strathmore (roads, water, sewer, storm) $114,000 - $168,000 (2021)
City of Leduc (roads, water, sewer, Fire) $151,330-$227,679 (2023)
Town of Okotoks (roads, water, sewer) $272,793 (2024)
/869 -- He)
Town of Cochrane (roads, water, sewer, storm, recreation) bs alee oka
09,663 -- 302,644
Red Deer (roads, water, sewer, storm) 7 63 -- 302,6
(2019)
Town of High River (roads, water, sewer, facilities) $97,400- $256,700 (2023)
Strathcona County (New Growth Areas) (roads, water, sewer, storm) $251,000 (2021)
City of Lethbridge (roads, water, sewer, storm) $308,000 (2025)
246,950 -- 402,621
City of Chestermere (roads, water, sewer, storm, recreation, fire) ian 24) ial
City of St. Albert (roads, water, sewer, storm) $301,288-$487,114 (2024)
City of Airdrie (roads, water, sewer, storm) $366,600 -- 370,170 (2022)
City of Edmonton (roads, water, sewer, storm) $400,000+
City of Edmonton (fire) $12,816 ~ $42,032 (2024)
City of Calgary ee" ned Area (roads, water, sewer, storm, library, $659,028 (2024)
emergency services, transit)
Information adapted from recent online sources. Note, some municipalities have updated (or are in
the process of updating) levy rates, but these rates were not available online at the time of writing.
Page | 65