Town of Devon Bylaw 994/2023, 2023 Off-Site Levy Bylaw (draft)
Devon, Alberta
· No. 994/2023
· summary & facts
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BYLAW 994/2023 Deve on
2023 Off-Site Levy --_y en
Year/month/day
Resolutions Effective Date
Related Bylaws
Lead Role Planning and Operations
A BYLAW OF THE TOWN OF DEVON, IN THE PROVINCE OF ALBERTA, TO ESTABLISH OFF-SITE
LEVIES FOR LAND THAT IS TO BE SUBDIVIDED OR DEVELOPED WITHIN THE TOWN OF DEVON
WHEREAS Section 648 of the Municipal Government Act allows Council to pass a bylaw for the
imposition and payment of off-site levies in respect of land that is to be developed or subdivided;
AND WHEREAS the Town 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 Town, the benefits of such infrastructure to land that is to be developed or
subdivided, the allocation of the capital costs of such infrastructure, the methodology on which
to base the Off-Site Levies and the calculation of the Off-Site Levies;
AND WHEREAS Council has received the Report, which sets out a fair and equitable calculation
of Off-Site Levies in accordance with the Municipal Government Act and the Off-Site Levy
Regulation;
AND WHEREAS Council has advertised its intention to consider the enactment of this Bylaw
pursuant to the requirements of the Municipal Government Act and has held a non-statutory
public hearing to receive stakeholder input regarding this Bylaw;
NOW THEREFORE, Council duly assembled, enacts as follows:
1. Name of Bylaw
1.1. This Bylaw shall be known and referred to as the "2023 Off-Site Levy Bylaw".
2. Definitions
2.1. The following terms shall have the following meanings in this Bylaw:
Page 1 of 8
(a) "Bylaw" means this Off-Site Levy bylaw;
(b) "CAO" means the chief administrative office for the Town, regardless of the specific
title that may be conferred on that officer from time to time;
(c) "Council" means the council for the Town;
(d) "Developable Land" means all land contained within the Development Area:
(e) upon which Development takes place after the date of enactment of this Bylaw; or
(f) for which Subdivision approval is obtained after the date of enactment of this Bylaw;
(g) excluding:
(h) all Developed Land;
(i) all land designated pursuant to a Subdivision as:
(i) environmental reserve;
(ii) conservation reserve;
(iii) municipal reserve;
(iv) community services reserve;
(v) school reserve;
(vi) municipal and school reserve;
(vii) arterial road right of way;
(viii) stormwater management facilities; or
(ix) public utility lots;
(x) any land owned by a school board that is to be developed for a school building
project within the meaning of the Education Act;
(j) "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;
(k) "Development" means "development" as defined in the Municipal Government Act;
(I) "Development Agreement" means "development agreement" as referred to in the
Municipal Government Act;
2023 Off-Site Levy Bylaw ®/2023
Page 2 of 8
(m) "Development Area" includes the area of land within the municipal boundaries of the
Town identified in Schedule "A" to this Bylaw;
(n) "Development Permit" means "development permit" as defined in the Municipal
Government Act;
(o) "Growth" means:
(i) the creation of new lots through Subdivision; and
(ii) the occurrence of Development;
(p) "Municipal Government Act" means the Municipal Government Act, RSA 2000, c. M
26, as amended or repealed and replaced from time to time;
(q) "Off-Site Infrastructure" means those components and projects set out in Schedule
"C" to this Bylaw in relation to water facilities and infrastructure, sanitary sewer
facilities and infrastructure and roads and transportation infrastructure to be paid for
in whole or in part by Off-Site Levies under the Bylaw;
(r) "Off-Site Levies" means the off-site levies imposed pursuant to this Bylaw;
(s) "Off-Site Levy Regulation" means the Off-Site Levies Regulation, Alta. Reg. 187/2017,
as amended or repealed and replaced from time to time;
(t) "Off-Site Levy Reserve Fund" means the separate funds to be established and
maintained for the purposes of receiving, holding and expending Off- Site Levies
collected and disbursed under the authority of this Bylaw and the Municipal
Government Act;
(u) "Report" means the Town of Devon: 2023 Offsite Levy Update, June 2023, prepared
by Corvus Business Advisors;
(v) "Subdivision" means "subdivision" as defined in the Municipal Government Act;
(w) "Town" means the Town of Devon.
3. Object and Principles of the Off-Site Levies
3.1. The objects and principles of the Off-Site Levies are as follows:
(a) The Off-Site Levies are to provide funds to pay for all or part of the capital costs of the
Off-Site Infrastructure required for Growth.
(b) Development in new growth areas through Off-Site Levies will provide the capital that
will fund the infrastructure required for Growth. Lands that benefit from the
infrastructure, which is defined by all Developable Land in the Development Area,
should share in the capital costs.
Page 3 of 8
(c) Off-Site Infrastructure will be provided to maintain sustainable, cost effective and
orderly Growth.
(d) All funds collected from Off-Site Levies will be credited to separate Off-Site Levy
Reserve Fund accounts, which may be invested as per the Town's Investment Policy
until used for the construction of the specified Off-Site Infrastructure. The
management of the Off-Site Levy Reserve Fund accounts will be an audited process,
with reports available to the public and industry.
(e) The Off-Site Levies will allow the Town to recover the cost of infrastructure required
for Growth:
(i) Using financing strategies that remain sustainable;
(ii) Facilitating Development by reducing risk on early developers and ensuring
future developers share the costs of the Off-Site Infrastructure from which
they benefit; and
(iii) Promoting cost effective and orderly Development.
(f) The Off-Site Levies will help promote orderly Development by providing Off-Site
Infrastructure, once the appropriate planning is in place, and when warranted in
Development.
(g) The Off-Site Levies will:
(i) Create consistent and predictable Off-Site Levies and credits;
(ii) Create predictable and stable Off-Site Levies over time; and
(iii) Document a process for establishing the Off-Site Levy rates.
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, as summarized in Schedule "C" to this Bylaw.
4.2. The amount of the Off-Site Levies imposed is as calculated in the Report and summarized in
Schedules "B" and "C" to this Bylaw.
4.3. The Off-Site Levies will be assessed on all Developable Land on a per hectare basis.
4.4. Unless otherwise agreed, payment of Off-Site Levies imposed under this Bylaw is due:
(a) in the case of Subdivision, at or prior to plan endorsement; and
(b) in the case of Development, as a condition of the issuance of the Development Permit.
Page 4 of 8
4.5. Any payment of Off-Site Levies pursuant to this Bylaw that is not paid when due and owing
shall be a debt owing to the Town and shall be subject to interest as determined by the
Town's policies. This provision does not affect any other remedy available to the Town for
late or non-payment of Off-Site Levies.
4.6. In addition, the Town may refuse to endorse a plan of Subdivision or issue a Development
Permit in relation to Developable Lands until the Off-Site Levies have been paid in full.
5. Authority of the CAO
5.1. The CAO 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 Town with respect to, among
other things, the collection of Off-Site Levies;
(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 CAO 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 CAO in determining which Development and Subdivision applications require a
Development Agreement or where to defer or waive collection of the Off-Site Levies
imposed pursuant to this Bylaw.
6.2. Where it is determined that a Development Agreement is appropriate for any application
for Development or Subdivision, the developer or the landowner, as the case may be, shall
enter into a Development Agreement with the Town 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. Within 90 days of the end of each calendar year, the CAO shall provide an annual report to
Council regarding the Off-Site Levies imposed under this Bylaw, including:
(a) Off-Site Infrastructure constructed during the previous calendar year;
(b) Construction costs of Off-Site Infrastructure constructed in the previous calendar
year;
(c) 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;
Page 5 of 8
(d) Amount collected in Off-Site Levies during the previous calendar year and the amount
of Off-Site Levies due and payable, but uncollected, as of December 31 of the previous
calendar year;
(e) Amount of Off-Site Levies expended during the previous calendar year; and
(f) Specifics of total value of Off-Site Levies being held by Town and yet to be expended
on Off-Site Infrastructure, interest earned and commitments for future expenditures
of such monies as of December 31 of the previous calendar year.
8. Accounting
8.1. All funds collected pursuant to this Bylaw shall be accounted for in an Off-Site Levy Reserve
for each category of infrastructure and expended only as permitted under the Municipal
Government Act.
9. Review
9.1. The Town shall review the rates for Off-Site Levies every two years and, if required, shall
amend this Bylaw accordingly to update the rates for Off-Site Levies.
9.2. Commencing in 2023, in each year that the Town does not conduct a review, the Town will
adjust the amount of the Off-Site Levy rates on December 31 of the non-review year by the
annual percentage change of the Consumer Price Index for the 12 month period from
November of the year before the non-review year to November of the non-review year if
the Consumer Price Index is positive. If the percentage change is zero or negative, the Off-
Site Levy rates shall not change. The change will be effective commencing January 1st of the
year following the non- review year.
9.3. Notwithstanding the foregoing, the rates for Off-Site Levies may be amended by Council
resolution where the rate change is due to a change in actual or estimated construction
costs.
10. General
10.1. Nothing in this Bylaw precludes the Town from:
(a) imposing further or different levies, duly enacted by bylaw, on any portion of the
Developable Lands in respect of which the Town 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.
Page 6 of 8
10.2. Schedules "A", "B" and "C" 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. In the 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
(b) any Development where the date of issuance of a Development Permit occurs on or
after the date this Bylaw comes into force.
11.2. Development Agreements entered into prior to the enactment of this Bylaw shall remain
valid and in effect.
11.3. 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). As of the effective
date of this Bylaw, the rates for Off-Site Levies payable under existing Development
Agreements shall be in accordance with this Bylaw.
11.4. Town Bylaw No. 928/2019 and all anendments thereto is hereby repealed.
Page 7 of 8
12. Execution
This Bylaw shall take effect and come into force effective after final reading and signature thereof by
the Chief Elected Official and CAO, or their authorized delegates.
FIRST READING passed in open Council duly assembled in Devon, Alberta, this day of
, 2023.
SECOND READING passed in open Council duly assembled in the Devon, Alberta, this day
of , 2023.
THIRD AND FINAL READING passed in open Council duly assembled in Devon, Alberta this
day of , 2023.
Mayor CAO
Page 8 of 8
SCHEDULE A
Map of Development Area
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SCHEDULE B
Off-Site Levy Rates
Transportation Water
Levies Levies
1.0 $ 35,500 $ 48.831 $ 64,930 $ 149 261
2.0 $ 35,500 $ 48.831 $ 64,930 $ 149,261
3.0 $ 35,500 $ 48.831 $ 64,930 $ 149 261
40 $ 35,500 $ 48.831 $ 64,930 $ 149 261
5.0 $ 35,500 §$ 48.831 $ 64,930 $ 149 261
6.0 $ 35,500 $ 48.831 $ 64,930 $ 149,261
7.0 $ 35,500 $ 48.831 $ 64,930 $ 149 261
8.0 $ 35,500 $ 48.831 $ 64,930 $ 149 261
9.0 $ 35,500 $ 48.831 $ 64,930 $ 149 261
10.0 $ 35,500 $ 48.831 $ 64,930 $ 149 261
11.0 $ 35,500 $ 48.831 $ 64,930 $ 149 261
[= 12.0 $ 35,500 $ 48.831 $ 64,930 $ 149 261
| 13.0 $ 35,500 $ 48.831 $ 64,930 $ 149,261
14.0 $ 35,500 $ 48.831 $ 64,930 $ 149 261
Kil 15.0 $ 35,500 $ 48.831 $ 64,930 $ 149 261
16.0 $ 35,500 $ 48.831 $ 64,930 $ 149,261
(aa 17.0 $ 35,500 $ 48.831 $ 64,930 $ 149,261
18.0 $ 35,500 $ 48.831 $ 64,930 $ 149,261
O) 19.0 $ 35,500 $ 48.831 $ 64,930 $ 149,261
20.0 $ 35,500 $ 48.831 $ 81,912 $ 166 243
21.0 $ 35,500 $ 48.831 $ 81,912 $ 166 243
22.0 $ 35,500 $ 48.831 $ 81,912 $ 166 243
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SCHEDULE C
Town of Devon: Offsite Levies Report
>. \ ALBERTA
Bylaw 928/2019, established by Town of Devon ("the Town') in 2019 defines offsite levy
charges pertaining to water, sanitary, and transportation offsite infrastructure in the
municipality. The Town wishes to update this bylaw, amending offsite infrastructure
included in the bylaw in alignment with the Town's latest capital/master plans, and
ensuring updated costs and development forecasts are reflected fairly and equitably in
new rates, thereby ensuring a financially sustainable community.
This report outlines the methodology and information used in establishing water, sanitary,
and transportation offsite levy rates for the Town, as well as other key findings and
recommendations.
LL Methodology
The Town has various infrastructure capital/master plans, and these plans have been
used by Town staff as a start point for developing key information for this offsite levy
rate review. Town staff reviewed existing plans and identified offsite projects for water,
sanitary, and transportation infrastructure') 1. The Town's review also included
determination of benefits to existing development, future development, and benefiting
areas.
Support provided by CORVUS Business Advisors included:
e Provision of the CORVUS offsite levy model, including configuration, priming, and
data loading.
e Incorporation of offsite levy area measurements and land development forecasts
(provided by Town staff).
e Incorporation of infrastructure costs and allocation percentages for existing
development, new development, and other parties (provided by Town staff).
e Establishment of offsite levy reserve balances (historical reconciliation details
provided by Town staff).
« Development of water, sanitary, and transportation offsite levy rates.
e Presentation of offsite levy rates and background information to Administration and
Council.
Offsite levy rates within the CORVUS offsite levy model are forecast using a rolling 25-
year review period. During this review, a cut-off date of December 31%, 2022, was
"It was not within established, and so the review period stems from 2023 to 2047. The cut-off date
CORVUS' scope of work coincides with the Town's most recent year-end when the project started. Project
to review the Town's expenditures, offsite levy receipts etc. were gathered as "actuals" from the Town's
capital/master plans. financial records up to the cut-off date. Beyond the cut-off date, all financial details are
Plans were reviewed and estimates. When the Town completes its next rate update, information from January 1°,
refined by Town staff. 2023, up to the new cut-off date will be converted from estimates to actuals.
ny oe 1 Costs that benefit development prior to and within the 25-year review period are
nual ene sea ti included in rates. Costs that benefit development beyond the review period (called
ek y) een "financial oversizing') are excluded from rates. In future years when rates are updated,
oes inna aa * d 4 and the rolling 25-year period moves further out, offsite infrastructure costs allocated to
: a oe A He future development which are currently beyond the 25-year review period will gradually
Tatham etushis EPA) YEN enter the 25-year period and be included in rates.
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TOWN OF
D (= Orn Project Description Total Project
i \4 Stretniodt les : Estimated Cost
Reservoir West R2 (West Hwy 60)
Pumphouse U2 (West Hwy 60) $ 1,381,380
Suppliy Line 400 mm (West Hwy 60) S 892,320
Reservoir East Annexation Lands S 4,218,500
$2,402,400
| 6 | Supply Line 300 mm (East Hwy 60) Phase | S 512,067
Water Treatment Plant Upgrade
| 8 Future (Membrane) Water Treatment Plant Upgrade | $ 1,072,500
| 9 | Juniper Ridge ASP Phase | S 1,687,500
Supply Line 300 mm (East Hwy 60) Phase II S 283,729
Supply Line 300 mm (East Hwy 60) Phase II S 1,072,500
$ 24,435,432
Location of Water Offsite Infrastructure
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TOWN OF
D evon Project Description Total Brotect
4 ALBERTA ? . Estimated Cost
Sanitary Main - Interim Area East of Future Hwy 60 S 3,975,400
Sanitary Main - Ultimate Area East of Future Hwy 60 | $ 3,010,234
Lift Station East Annexation Area 5 3,575,000
| 4 | Forcemain East Annexation Area S 2,145,000
Wastewater Treatment Plant Upgrade $30,975,358
| 6 | Haven Avenue Main Twinning S 5,478,698
$ 49,159,690
Location of Sanitary Offsite Infrastructure
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helt eed Project Description Total Project
@G@VOrr Estimated Cost
i \4 ALBERTA Oil Patch Drive Extension Phase |
Derrick Drive Extension $ 1,002,350
Michigan Street Extension S 1,224,241
Range Road 262 North $ 1,109,356
Existing Hwy 19 Intersection $ 2,100,000
| 6 | Miquelon Avenue East S$ 15,015,000
Michigan Street Extension Il $ 605,236
| 8 | Miquelon Avenue West 5 1,001,000
$ 22,057,184
Location of Transportation Offsite Infrastructure
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TOWN OF
1f-)0), Summary of Offsite Levies by Area
i \4 ALBERTA
(per net hectare)
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= Pao [s 35as8[s an7m[s erase] $ 149,056
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-7-
Devon The table be low compares the we ighted average offsite levy
~~ ALBERTA rate in the Town to rates in other municipalities.
Town of Stony Plain (roads, water, sewer, recreation) $74,950 (2021)
Sturgeon County -- Sturgeon Valley* (roads, water, sewer) $82,800 (2021)
Town of Rocky Mountain House* (roads, water, sewer) (by Dev Agreement) $79,700 (2016)
Parkland County* (roads, water, sewer, storm) $82,500 (2018)
Town of Sylvan Lake* (roads, water, sewer, storm) $90,388 (2022)
Town of Calmar* (roads, water, sewer) $95,700 (2020)
City of Fort Saskatchewan (South Fort) (roads, water, sewer, storm) $104,100 (2017)
Leduc County* - Nisku (roads, water, sewer) $109,000 (2017)
City of Spruce Grove* (roads, water, sewer, recreation, library) $130,690 (2022)
City of Leduc* (roads, water, sewer) $138,500 (2021)
Town of Devon* (roads, water, sewer, ) $159,330 (2023)
Town of Cochrane (roads, water, sewer, storm, recreation) $250,000 (2020)
Town of Okotoks (roads, water, sewer) $198,600 (2020)
City of Red Deer* (roads, water, sewer, storm) $203,300 (2019)
City of Chestermere' (roads, water, sewer, storm, recreation) $226,980 (2021)
Kil Red Deer County (Gasoline Alley) (roads, water, sewer, storm) $220,000 (2017)
City of Medicine Hat* (subsidy) (roads, water, sewer, storm) $250,000 (2019)
(a Strathcona County (New Growth Areas) * (roads, water, sewer, storm) $ 251,000 (2021)
City of Lethbridge (roads, water, sewer, storm) $281,000 (2020)
O) City of St. Albert* (roads, water, sewer, storm) +$300,000 (2020)
City of Edmonton (roads, water, sewer, storm) +$400,000
City of Calgary Green Field Area (roads, water, sewer, storm, comm svc, $495,000 - $544,000
stabilization)
*CORVUS Clients
**Information gathered from available online sources at end-2022
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