Off-Site Levy Background Report 2022 (Black Diamond)
Diamond Valley, Alberta
· summary & facts
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OFF-SITE LEVY BACKGROUND
REPORT
2022
Prepared for the Town of Black Diamond
June 30, 2022
Suite 101, 134 - 11 Avenue SE, Calgary, AB T2G 0X5 | T: 403.291.1193
This report is prepared for the sole use of Town of Black Diamond. No representations of any kind
are made by Urban Systems Ltd. or its employees to any party with whom Urban Systems Ltd.
does not have a contract. © 2022 URBANSYSTEMS®.
File: 0925.0022.02
Suite 101, 134 - 11 Avenue SE, Calgary, AB T2G 0X5 | T: 403.291.1193
OFF-SITE LEVIES BACKGROUND REPORT 2022
PREPARED FOR:
Town of Black Diamond
301 Centre Ave W
Black Diamond, AB T0L 0H0
Attention: Rod Ross, Planning Manager
Off-Site Levy Background Report | i
TABLE OF CONTENTS
INTRODUCTION .............................................................................................................................................................. 1
1.
ENABLING LEGISLATION ................................................................................................................................... 2
2.
GUIDING PRINCIPLES ...................................................................................................................................... 3
3.
ANTICIPATED GROWTH ................................................................................................................................ 4
3.1.
Growth Forecast .......................................................................................................................................................................... 4
3.2.
Growth Pattern ............................................................................................................................................................................. 5
3.3.
Determination of Infrastructure Needs ......................................................................................................................... 6
3.4.
Infrastructure Inlcuded............................................................................................................................................................ 6
4.
METHODOLOGY FOR DETERMINING OFF-SITE LEVIES ................................................................. 7
4.1.
Allocation of Benefit .................................................................................................................................................................. 7
4.2.
Revolving vs. Capacity .............................................................................................................................................................. 7
4.3.
Application of Levy ..................................................................................................................................................................... 8
4.3.1.
Town-Wide vs. Area Specific ............................................................................................................................................................ 8
4.3.2.
Redevelopment.......................................................................................................................................................................................... 8
4.3.3.
Land Area to be Charged Levies ................................................................................................................................................... 9
4.3.4.
Grants ................................................................................................................................................................................................................. 9
5.
OFF-SITE LEVY PROJECTS .......................................................................................................................... 10
5.1.
Water Supply, Treatment, Storage, And Pumping ................................................................................................ 10
5.2.
Sanitary Sewage Treatment and Disposal .................................................................................................................. 12
5.3.
Water Distribution .................................................................................................................................................................... 14
5.4.
Sewage Collection ..................................................................................................................................................................... 16
5.5.
Transportation .............................................................................................................................................................................18
6.
OFF-SITE LEVY CALCULATIONS .............................................................................................................. 20
6.1.
Levy Account Balances ..........................................................................................................................................................20
6.2.
Financial Model Inputs............................................................................................................................................................ 21
6.3.
Payment Timing ......................................................................................................................................................................... 21
6.4.
Off-Site Levy Updates ............................................................................................................................................................. 22
6.5.
Summary of Off-Site Levy Rates ....................................................................................................................................... 22
Off-Site Levy Background Report | ii
TABLES
Table 1: Populations Growth Forecast Assumptions................................................................................................... 4
Table 2: Population and Development Area Projections Over 25 Year Time Period ............................ 4
Table 3: Infrastructure Master Plans/Studies .................................................................................................................... 6
Table 4: Summary of Levy Calculation Approach - Time Horizon ...................................................................... 7
Table 5: Summary of Levy Calculation Approach - Benefitting Areas ............................................................8
Table 6: Summary of Projects - Water Supply, Treatment, Storage and Pumping .............................. 10
Table 7: Summary of Projects - Sanitary Sewage Treatment and Disposal .............................................. 12
Table 8: Summary of Projects - Water Distribution ................................................................................................... 14
Table 9: Summary of Projects - Sewage Collection ................................................................................................... 16
Table 10: Summary of Projects - Transportation .......................................................................................................... 18
Table 11: Infrastructure Fund Balances ............................................................................................................................... 20
Table 12: Financial Model Inputs .............................................................................................................................................. 21
Table 13: Summary of Off-site Levy Rates ......................................................................................................................... 22
APPENDICES
APPENDIX A: FIGURES
Figure 1. Development Area ...................................................................................................................................................... 23
Figure 2. Water Supply, Treatment, and Storage ....................................................................................................... 23
Figure 3. Sewage Treatment and Disposal ..................................................................................................................... 23
Figure 4. Water Distribution ..................................................................................................................................................... 23
Figure 5. Sewage Collection ...................................................................................................................................................... 23
Figure 6. Sewage Catchments................................................................................................................................................. 23
Figure 7. Transportation ............................................................................................................................................................... 23
APPENDIX B: REDEVELOPMENT CALCULATION EXAMPLES
Off-Site Levy Background Report | 1
INTRODUCTION
The Town of Black Diamond recently annexed 821 acres of land to continue to accommodate sustained
growth. To support this growth, the Town continues to review and assess growth-related infrastructure
needs. The Off-Site Levy Bylaw provides a key mechanism for municipalities to ensure future growth
pays for infrastructure improvements required to service that growth.
The Background Report forms part of the Off-Site Levy Bylaw and provides a summary of the
calculation methodology used to determine the Town's Off-Site Levy rates. The Background Report is
divided into four sections:
1)
Off-Site Levy Guiding Principles
Articulates the Town's objectives related to the advancement of growth-related infrastructure.
2) Growth Needs
Defines assumptions related to development area needs based on population and pattern of
growth and references the studies completed by the Town to identify future growth-related
infrastructure.
3) Off-Site Levy Program
Describes what infrastructure is to be included within the off-site levy program and provides
details on project costs, project timing, allocation of benefit and cost recovery methodology.
4) Levy Calculation
Articulates cash flow components (inflation, carry costs, and interest earned) utilized within the
off-site levy calculation and provides the resulting off-site levy rates.
The Background Report is intended to provide transparency to Council, the development industry and
the public regarding future infrastructure needs along with the levy calculation and contribution
requirements from the Town and the development industry.
Off-Site Levy Background Report | 2
1. ENABLING LEGISLATION
The Municipal Government Act (MGA) is a law that establishes the responsibilities and powers of
municipalities. Section 648 of the MGA allows municipalities to impose a levy to help pay for the capital
costs of new or improved infrastructure to service growth. Section 648 provides direction on what types
of infrastructure can be included in an off-site levy bylaw:
-
An off-site levy may be used only to pay for all or part of the capital cost of any or all of the
following, as per Section 648(2):
a) new or expanded facilities for the storage, transmission, treatment or supplying of
water;
b) new or expanded facilities for the treatment, movement or disposal of sanitary
sewage;
c)
new or expanded storm sewer drainage facilities;
(c.1) new or expanded roads required for or impacted by a subdivision or development;
(c.2) subject to the regulations, new or expanded transportation infrastructure required to
connect, or to improve the connection of, municipal roads to provincial highways
resulting from a subdivision or development;
d) land required for or in connection with any facilities described in clauses (a) to (c.2).
-
Additionally, Section 648(2.1) specifically states:
"In addition to the capital cost of facilities described in subsection (2), an off-site levy may be
used to pay for all or part of the capital cost for any of the following purposes, including the cost
of any related appurtenances and any land required for or in connection with the purpose:
a)
new or expanded community recreation facilities;
b)
new or expanded fire hall facilities;
c)
new or expanded police station facilities;
d)
new or expanded libraries.
In addition to adhering to Section 648 of the MGA, municipalities must also align with the Off-Site
Levies Regulation (Alberta Regulation 187/2017) when determining their off-site levy charges. Among
other things, the Regulation requires correlation between the levy and the impacts of future growth,
method of calculation be clear, information used in the levy calculation be kept current and levies are
determined in consultation with affected landowners and developers. Involvement of the development
industry is to be consultative in nature with the goal of obtaining the industry's perspective on fairness
and equity of levies.
In 2015, as part of the MGA review, amendments were made to the Act that allow municipalities to
charge for each type of infrastructure separately and over time. Previously, if a levy had been collected
for any type of infrastructure, a municipality was unable to collect another levy regardless of whether
the levy was for a different type of infrastructure. This change to the MGA will allow municipalities to
collect levies on land that has already paid levies if the levy being imposed is for a different type of
infrastructure.
Off-Site Levy Background Report | 3
2. GUIDING PRINCIPLES
The off-site levies are one tool that can be utilized by municipalities to finance and fund growth-related
infrastructure. Off-site levy programs, like other programs utilized by municipalities, should reflect
broader objectives of the community. To support the development of the Town's Off-Site Levy Program
and alignment with broader Town objectives, the following guiding principles have been developed:
Integration
The off-site levy update is in alignment with the Town's broader community goals and
with governing legislation.
Financial Sustainability and Resiliency
The off-site levy update minimized the financial burden on the municipality while
stimulating sustainable long-term growth.
Accountability
The off-site levy update is transparent, accessible, and understandable by stakeholders.
Fairness and Equity
The off-site levy update establishes a program that ensures those that benefit pay.
Administrative Efficiency
The off-site levy update establishes cost recovery strategies that are easily implemented,
efficient, and cost effective.
Remain Competitive
The off-site levy update considers the overall costs of development and/or overall costs to
residents/businesses through future financing and funding of growth-related
infrastructure.
Off-Site Levy Background Report | 4
3. ANTICIPATED GROWTH
3.1. GROWTH FORECAST
In 2016, The Town completed the Joint Growth Strategy with the Town of Turner Valley to project and
guide future growth within the Town communities. The Joint Growth Strategy presents three
sustainable growth scenarios for a 60-year horizon (2016-2075). The information provided in the Joint
Growth Strategy has been utilized to inform anticipated growth within the off-site levy update. Growth
assumptions utilized in the Joint Growth Strategy are captured in Table 1. The anticipated hectares of
growth over the next 25-year period, based on these assumptions, is captured in Table 2. The non-
residential growth is reflective of the bulk of non-residential growth articulated in the Joint Growth
Strategy, given the Town's current composition and land availability.
Table 1: Populations Growth Forecast Assumptions
Year
Population Growth Rate
Residential Units Per Acre
2020 - 2035
2.50%
5.5
2035 - 2055
2.25%
6.5
2055 - 2075
2.00%
8.0
Note: The Joint Growth Strategy assumes 2.4 people per residential unit
Table 2: Population and Development Area Projections Over 25 Year Time Period
Year
Total
Population
(Persons)
Residential Units Per Acre
Residential
Non-Residential
Total
2021 (Census)
2,730
2023 - 2047
(25 years)
64.1
10.3
74.4
Off-Site Levy Background Report | 5
3.2. GROWTH PATTERN
Projected growth in conjunction with the pattern of growth guides the Town's anticipated
infrastructure needs over the next 25-yr period. The pattern of growth is informed by long-range
planning completed by the Town, access to and capacity of existing infrastructure, continuity of
development and other considerations. The map below displays the anticipated direction of future
growth over the next 25yrs. The infrastructure included in the Off-Site Levy Bylaw has been guided by
this anticipated growth pattern over the next 25yrs.
Off-Site Levy Background Report | 6
3.3. DETERMINATION OF INFRASTRUCTURE NEEDS
Over the past few years, the Town of Black Diamond has reviewed growth-related infrastructure needs
based on the projected and anticipated pattern of growth. Through these assessments, master
plans/studies have been updated and/or created to capture the infrastructure needs required to service
future growth and form the basis for infrastructure to be considered for inclusion in the off-site levy
program. The plan and studies are captured in Table 3 for reference.
Table 3: Infrastructure Master Plans/Studies
Infrastructure
Study
All Infrastructure
-
Joint Growth Strategy, May 2016
-
Annexation Lands Servicing Review, Revised, February 2021
Storm
Storm Infrastructure
-
Master Drainage Plan, April 2021
Water
Water Pumping
-
Black Diamond Pump Station Feasibility Review, July 2020
Sanitary
Sewage Collection
-
Kaiser Area Structure Plan (ASP) Technical Background Report,
January 2017
-
Black Diamond Sanitary Servicing Considerations for Area 2 and
the Kaiser Development, June 2022
Transportation
Transportation
Infrastructure
-
Kaiser Transportation Impact Assessment, September 2017
3.4. INFRASTRUCTURE INCLUDED
Off-site levies are primarily utilized as a funding tool for major off-site growth-related infrastructure and
offer an effective mechanism to ensure costs are shared equitably with those that benefit.
Infrastructure included, allocation of benefit, and the approach to cost recovery are key components of
any off-site levy program. The method to determine these key components can vary across
infrastructure categories and communities based on a community's context and broader objectives.
Infrastructure that can be considered for inclusion in an off-site levy program is guided by the
Municipal Government Act. The Town has included major off-site infrastructure related to water,
sanitary and transportation projects within their program. Actual infrastructure included in each
infrastructure category is captured below in Section 5.
Off-Site Levy Background Report | 7
4. METHODOLOGY FOR DETERMINING OFF-SITE LEVIES
4.1. ALLOCATION OF BENEFIT
Allocation of benefit refers to the proportionate distribution of infrastructure costs to those that benefit
from the infrastructure. Allocation of benefit can occur between existing development and future
growth, between multiple new developments and even contemplate multi-jurisdictional allocation,
depending on the infrastructure. In determining the allocation of benefit to existing development or
existing users of the infrastructure, several factors are considered, including capacity allocation and
asset renewal of an existing system Allocation of benefit is discussed below in Section 5 for each
infrastructure category.
4.2. REVOLVING VS. CAPACITY
When determining the most appropriate off-site levy recovery method, the time horizon for collection
relative to each piece of infrastructure, there are two approaches generally utilized: capacity or
revolving timeframe. If there are several projects anticipated over time, the revolving timeframe
approach helps to minimize fluctuations and provides more funding flexibility. For Black Diamond's
calculations a 25-year revolving timeframe is used, as this typically aligns with long-term planning and
infrastructure horizons. In this timeframe, the Town has a reasonable understanding of its infrastructure
needs and the costs for major infrastructure improvements.
A capacity-based time horizon considers all the projects necessary to service the build-out of a
particular area / community and typically includes a long-time horizon. A capacity-based approach
considers all land potentially available for build-out and is typically most appropriate for well-defined
build-out areas with a limited number of projects.
For the purposes of the current levy calculations, the approach for each infrastructure type is indicated
in Table 4.
Table 4: Summary of Levy Calculation Approach - Time Horizon
Infrastructure Type
Build-Out
(capacity based)
Revolving Timeframe
Water Supply, Treatment, Storage, and
Pumping
Sanitary Sewage Treatment and Disposal
Water Distribution
Sewage Collection
Transportation
Off-Site Levy Background Report | 8
4.3. APPLICATION OF LEVY
4.3.1. TOWN-WIDE VS. AREA SPECIFIC
Cost recovery of off-site levy infrastructure projects can be calculated and applied on a town-wide basis
or on an area specific or catchment basis. The decision to apply levies by either of these methods
depends on the particular infrastructure projects and whether the benefit of the projects can be
definitively allocated to a specific area. That being said, in some cases, existing and/or future
infrastructure capacity can be arbitrarily assigned and secured outside of defined catchments, which
can lead to the inequitable application of levies. Additionally, when the benefit of projects can be
reasonably allocated to a specific area, the levy may still be applied on a town-wide basis if the disparity
between charges to specific areas is not great and administrative efficiency would be achieved through
averaging the costs over the entire Town.
For the purposes of the current levy calculations, the approach for each infrastructure category is
indicated in Table 5.
Table 5: Summary of Levy Calculation Approach - Benefitting Areas
Infrastructure Type
Town-Wide Levy
Calculation
Area-specific Levy
Calculation
Water Supply, Treatment, Storage, and
Pumping
Sanitary Sewage Treatment and Disposal
Water Distribution
Sewage Collection*
Transportation
Note: Sewage collection benefitting areas is dependant on the project
4.3.2. REDEVELOPMENT
Redevelopment shall be subject to offsite levies where the lands have not been previously subject to an
off-site levy for the same purpose. Redevelopment refers to the creation of new units, uses or lots on
previously developed land. An incremental intensity calculation is utilized to determine the off-site levy
applicable for redevelopment. Application of the incremental intensity calculation accounts for previous
use of existing infrastructure and applies the levy to only the increased intensity of development for the
lands within the development area.
[Redevelopment Levy Calculation = Off-Site Levy X Development Area X
Incremental Intensity]
Incremental Intensity accounts for existing uses on the site, which may be reflected through the
number of units or total floor area. Incremental Intensity will be determined by the Town of Black
Diamond utilizing historical development intensity and proposed development plans to establish base
line and future intensity of use levels.
Off-Site Levy Background Report | 9
4.3.3. LAND AREA TO BE CHARGED LEVIES
The land area to be charged levies includes all lands within the development area, as shown on Figure 1
in Appendix A, excluding Environmental Reserve and Environmental Reserve Easement. Development
area includes all lands within the Town's boundary. Levies are to be applied to all lands within the
Town's boundary that benefit from the infrastructure and that have not paid for the infrastructure
purpose(s) in the past.
4.3.4. GRANTS
The Town may receive project specific and/or discretionary grants that may be utilized to help fund off-
site levy projects. Application of the grants within the off-site levy program will vary depending on the
type of grant. Project specific grants, such as Alberta Municipal Water/Wastewater Partnership
(AMWWP) are applied to the total project cost. Both the Town and developers will share the benefit of
these grants based upon the allocation of benefit of the project.
Discretionary grants, such as Municipal Sustainability Initiative (MSI), gas tax or others will be applied to
the Town's portion of the project costs. These grants are discretionary in nature and the Town can choose
which projects to apply this funding to.
Off-Site Levy Background Report | 10
5. OFF-SITE LEVY PROJECTS
5.1. WATER SUPPLY, TREATMENT, STORAGE, AND PUMPING
The Town receives treated water from the Sheep River Regional Utility Corporation, a partnership
between the Town of Black Diamond, Town of Turner Valley, Foothills County, and the Village of
Longview. The Town of Black Diamond owns and operates the water storage, pumping and distribution
network with the Town. Storage and pumping infrastructure and improvements have been identified as
projects that support future growth and have been included in the off-site levy program.
Infrastructure Included
The off-site levy program includes an existing treated water storage reservoir, existing water
pumphouse and future pumphouse upgrades.
Table 6: Summary of Projects - Water Supply, Treatment, Storage and Pumping
Project
ID
Description
Cost ($)
Construction
Years
Assumed
Grants /
Regional
Contributions
($)
Allocation of
Benefit to
Future Growth
WS1
Water Storage Reservoir
- Existing 1,000,00
imperial gallon treated
water storage reservoir
$335,188
($2008)
1991
$0
Amount to still
be recovered:
($190,152)
WP1
2002 Pumphouse
(pumps upgraded in
2016) - Pumphouse
upgrades to improve flow
rates and distribution
system pressures.
$676,137
($2008)
2002 (pumps
upgraded in
2016)
$0
Amount to still
be recovered:
($298,498)
WP2
Pumphouse Upgrades -
Upgrades to the
pumphouse to
accommodate future
growth including
upsizing pumps,
upgrading and upsizing
piping, and electrical
upgrades
$1,927,000
($2022
projected)
2034 - 2035
$0
36%
Allocation of Benefit
When a water supply, treatment, storage, and/or pumping expansion provides capacity and/or
improved service delivery to existing development, that portion of the project is allocated as
benefit to existing Town residents. WS1 and WP1 are existing projects that the Town is still
recovering on. The amount to still be recovered reflects the remaining portion of the project that
benefits future growth.
Off-Site Levy Background Report | 11
The WP2 project is required to provide redundancy to the existing system, as well as support
future growth in the Town. It is assumed these larger pumps will have a lifespan of 20 years and
will need to be replaced prior to reaching full capacity. As such, the allocation of benefit is based
on the existing population at the time of improvement (3,857) divided by the overall population
benefiting from the improvement prior to life-cycle improvements (6,020). This equates to an
allocation of benefit of 36% to future growth.
Recovery Approach
A town-wide recovery approach is used for water supply, treatment, storage, and pumping
projects as they benefit all development regardless of location.
Grants
No grants have been assumed for these projects.
Fund Balance
The amount to still be recovered for WP1 is ($298,498). However, the Town has collected funds for
water supply and water treatment projects that were not advanced given the impacts to the
Town's water supply and treatment systems in 2013. These collections have been applied to the
water pumping fund balance as they are all within the same infrastructure category and applied
Town-wide. This has resulted in a positive fund balance of $36,202 moving forward.
The amount to still be recovered for WS1 is ($190,152).
Off-Site Levy Background Report | 12
5.2. SANITARY SEWAGE TREATMENT AND DISPOSAL
The Westend Regional Sewage Service Commission, a commission equally owned by the Town of Black
Diamond and Town of Turner Valley, receives and treats all sewage from the Town and disposes of the
treated effluent. All sanitary treatment and disposal improvements play a role in supporting future
growth.
Infrastructure Included
The sanitary sewage treatment and disposal infrastructure included in this off-site levy program
consist of wastewater treatment plant upgrades and expansions.
Table 7: Summary of Projects - Sanitary Sewage Treatment and Disposal
Project
ID
Description
Cost ($)
Construction
Years
Assumed
Grants /
Regional
Contributions
($)
Allocation of
Benefit to
Future Growth
ST1
Westend Lagoon
Upgrades - Upgrades to
the lagoon system to
meet regulatory
requirements and to
account for future
growth. Includes new
aeration and blowers,
SAGR cells for ammonia
removal, chemical
injection and disk filter
for phosphorus removal,
UV for coliform removal,
and a new diffuser/outlet
for better mixing in the
river
$17,340,000
($2022
projected)
2022-2024
$6,936,000
(federal) and
$5,779,422
(provincial)
49.85%
Allocation of Benefit
The ST1 project provides benefit to existing residents and future growth. The existing Town
benefits through the improvement of treatment to achieve effluent requirements as well as life-
cycle replacement. Improvements to the lagoon also provide benefit to future growth through
additional capacity. The lagoon is anticipated to service a population of 10,649 between both
Black Diamond and Turner Valley.
Given the wastewater treatment facility is a shared facility supporting both Towns, the levies
have been calculated collectively. Together the Town's have a population of 5,341 residents
(based on the 2021 Federal Census). Allocation of benefit to future growth is based on the future
population supported by the lagoon improvements (10,649 - 5,341 = 5,308) divided by the total
population serviced (10,649).
Off-Site Levy Background Report | 13
Recovery Approach
A town-wide recovery approach is used for sanitary sewage treatment and disposal projects as
they benefit all development regardless of location.
Grants
Project ST1 has received grant funding from both the federal and provincial governments for
amounts of $6,936,000 and $5,779,422, respectively. These grants are applied to the total project
cost of $17,340,000.
Fund Balance
This is a new project, and, as such, there is no existing fund balance for this project.
Off-Site Levy Background Report | 14
5.3. WATER DISTRIBUTION
The water distribution system consists of a network of pipes that transmit water from the Town's
treated water reservoir and pumphouse to businesses and residents throughout the Town. Together
with water storage and pumping, the distribution system provides the necessary water pressure and
fire flow distribution to serve all customers.
Infrastructure Included
The water distribution infrastructure includes all major distribution mains that have the potential
to benefit multiple developments.
Table 8: Summary of Projects - Water Distribution
Project
ID
Description
Cost ($)
Construction
Years
Assumed
Grants /
Regional
Contributions
($)
Allocation of
Benefit to
Future Growth
WD1
4th Ave SE Main - The
existing 250mm main
from the water
pumphouse northeast to
4th Ave SE and the
existing 250mm main on
4th Ave SE east of
Maplewood Drive
$69,332
($2008)
Prior to 1997
$0
Amount to still
be recovered:
$27,019
WD3
1st Ave SE Water Main -
250mm water main
along 1 Ave SE between 6
St SE and existing main
at 408 1 Ave SE to
increase overall system
redundancy and improve
fire flows.
$551,085
($2020)
2020-2021
$0
46%
WD4
6th St SE Main - 400mm
water main along 6 St SE
from 4 Ave to 1 Ave to
increase overall system
redundancy and improve
fire flows.
$1,143,922
($2020)
2020-2021
$0
46%
Allocation of Benefit
Projects included in the off-site levy program provide benefit to existing Town residents by
improving redundancy and fire flows, providing capacity for future growth, and strengthening
the overall water distribution network. As such, the project costs have been allocated based on
population growth over the revolving timeframe (25yrs) relative to the existing Town's
population. The Town's current population is 2,730 (2021 Census). The population in 25yrs is
anticipated to be 5,050, resulting in an allocation of benefit of 46% to future growth.
Off-Site Levy Background Report | 15
Recovery Approach
The water distribution network is an interlinked network of pipes that together provide the
necessary system water pressure, fire flow distribution and water flow to service the overall
Town. As such, the water distribution projects to be included in the off-site levy program
provide benefit to the existing Town and future growth regardless of location. The off-site
project needs over a 25-year revolving timeframe were identified, and more projects are
anticipated in the future as additional development occurs.
Grants
No grants have been assumed for these projects.
Fund Balance
The amount to still be recovery from future growth for the three projects advanced by the Town
is ($763,529). This includes ($27,019) for WD1, ($212,461) for WD3, and ($524,049) for WD4.
Off-Site Levy Background Report | 16
5.4. SEWAGE COLLECTION
The sewage collection system consists of a network of gravity and pressure sanitary mains and lift
stations that collect sewage and transport it to the Westend wastewater treatment facility for
treatment and disposal.
Infrastructure Included
Sanitary collection infrastructure includes major trunk mains, which may include upgrades or
twinning of existing infrastructure.
Table 9: Summary of Projects - Sewage Collection
Project
ID
Description
Cost ($)
Construction
Years
Assumed
Grants /
Regional
Contributions
($)
Allocation of
Benefit to
Future Growth
SC1
East Sanitary Main - The
east sanitary sewage
collection main (east
sanitary main) was
initially constructed to
service the Kaiser area.
$264,681
($2008)
1998
$0
Amount to still
be recovered:
$126,016
SC2
1 Ave SE Sanitary Main -
250mm sanitary main
along 1 Ave SE between 6
St SE and existing main
at 408 1 Ave SE
$149,058
($2020)
2020 - 2021
$0
87%
SC3
Hydraulic Connection to
the Westend Sanitary
Sewer - Hydraulic
connection to the
Westend main to allow
for increased sanitary
flows.
$445,000
($2022
projected)
2026 - 2027
$0
100%
Allocation of Benefit
The benefitting areas of the sanitary collection projects are dependant on the function of the
sanitary main and allocated based on capacity. SC1 is an existing project and provides benefit to
the Kaiser area. As displayed on Figure 5, SC2 provides benefit to the existing area within Kaiser
(9.1 ha) and can service ~69ha in the Kaiser and/or Area 2 catchment area. As such, 87% of SC2
project costs have been allocated to future growth. SC3 provides additional capacity within the
main connection to the Westend lagoon, solely benefiting future growth. As such, the SC3
improvement has been allocated 100% to future growth.
Off-Site Levy Background Report | 17
Recovery Approach
All sanitary collection projects included in the off-site levy program are calculated on a capacity
basis.
Grants
No grants have been assumed for these projects.
Fund Balance
The amount to still be recovered for SC1 is ($126,016).
The amount to still be recovered for SC2 ($129,680).
The fund balance for SC3 is $31,397. This positive fund balance reflects previous collections for the
sanitary outfall trunk main project that was not built. Both projects provided Town-wide benefit.
Off-Site Levy Background Report | 18
5.5. TRANSPORTATION
The Town's transportation system consists of a network of minor and major roadways and intersections.
Infrastructure Included
Transportation infrastructure projects include infrastructure improvements required to support
capacity improvements for growth. Only Highway Intersections (3rd Street and HWY 7 and 6th
Street and HWY 7) have been identified in the off-site levy program at this time (i.e., not
Transportation - general - projects).
Table 10: Summary of Projects - Transportation
Project
ID
Description
Cost ($)
Construction
Years
Assumed
Grants /
Regional
Contributions
($)
Allocation of
Benefit to
Future Growth
T1
3rd Street and HWY 7
(Centre Avenue)
Intersection Upgrades -
Upgrading of intersection
to a signalized
intersection to account
for additional traffic from
growth
$1,449,000
($2022
projected)
2027
$0
45%
T2
6th Street and HWY 7
(Centre Avenue)
Intersection Upgrades -
Upgrading of intersection
to a signalized
intersection to account
for additional traffic from
growth
$1,449,000
($2022
projected)
2032
$0
100%
Allocation of Benefit
The T1 Highway Intersection upgrades provide benefit to the existing Town, as well as benefit to
future growth by increasing intersection capacity. This intersection is currently utilized by
east/west traffic travelling along HWY 7, as well as traffic generated by the Diamond Valley
Industrial and future growth. It is not anticipated that this intersection upgrade will benefit
east/west traffic beyond existing conditions. Based on traffic projections, it was determined that
55% of trips generated from north/south traffic will be generated by the existing industrial area,
and 45% of the trips will be generated from future growth. The T2 Highway Intersection
upgrades solely benefit future growth as it provides improved access to future growth areas.
The T2 upgrades do not benefit the existing town, as there are very few turning movements at
the existing intersection throughout the day.
Off-Site Levy Background Report | 19
Recovery Approach
These intersection upgrades provide benefit to the overall transportation system within the
Town. The Town's transportation network is defined by two regional highways (HWY 7 and HWY
22). Given the regional nature of these highways all future growth benefits from improvements
to the overall network. The off-site project needs over a 25-year revolving timeframe were
identified, and more projects are anticipated in the future as additional development occurs.
Grants
No grants have been assumed for these projects.
Fund Balance
The fund balance for the transportation projects is $19,054. This positive fund balance is for funds
previously collected for transportation infrastructure that was not built.
Off-Site Levy Background Report | 20
6. OFF-SITE LEVY CALCULATIONS
The off-site levy calculation is based on a cash flow projection that incorporates assumptions for
population growth, project expenditures, payment timing, interest rate returns, borrowing costs and
inflation to determine levy rates. The cash flow approach ensures full cost recovery to support fairness
and equity of the levy rates. Calculation of the off-site levy charges is based on four key components
and can be simplified as follows:
Anticipated growth (hectares of development) and project expenditures (costs and timing) are
captured in Sections 3 and 5. The below provides an overview of the remaining components that feed
into the calculation.
6.1. LEVY ACCOUNT BALANCES
To properly account for the previous collection of levies and/or project expenditures, off-site levy fund
balances need to be brought forward into the levy calculation. The levy account starting balance
reflects the aggregated total of collections received, less project expenditures, plus interest credits, less
borrowing costs. This is the starting point of the levy calculation and reflects actual collections and
expenditures credited and charged to the account to-date.
Accounting for the levy starting balance ensures levies collected to date for future projects are reflected
in the levy calculations to avoid collecting twice for projects. Correspondingly, any deficit account
balances, resulting from previously constructed projects where levies have not been fully collected, are
brought forward to the new levy calculation.
As the Off-Site Levies are established using a Town wide philosophy, any changes that result from a levy
update will be reflected in the fund balance. If a project costs more or less than projected, when the
project is completed, the difference will be reflected in the fund balance. If a project is deleted the
funds collected to date will be used to fund infrastructure of the same category.
As a result, the model starts with either a positive or negative account balance for each of the
infrastructure categories. The existing fund balances are shown in Table 11 below:
Table 11: Infrastructure Fund Balances
Infrastructure Type
Funding Balance (January 1, 2022)
Water Supply, Treatment, Storage, and Pumping
WP1
$36,202
WS1
($190,152)
Sanitary Sewage Treatment and Disposal
$0
Water Distribution
Off-Site Levy Background Report | 21
WD1
($27,019)
WD3
($212,461)
WD4
($524,049)
Sewage Collection
SC1
($126,016)
SC2
($129,680)
SC3
$31,397
Transportation
Highway Intersections
$19,054
6.2. FINANCIAL MODEL INPUTS
Financial model inputs include interest earned, carrying costs and inflation. When a projected positive
fund balance occurs, interest earned is applied to the positive balance. Conversely, when a fund balance
is negative (e.g., the Town front-ends infrastructure prior to collecting enough funds to cover the
project costs) a borrowing cost is applied to the negative balance. For projects still to be recovered, the
Town did not take on any debt. For future projects to be advanced by the Town, the Town is unclear if
debt will be required. As such, no borrowing costs have been included for existing and/or future
projects. An annual inflation rate is applied to future project costs and levy collections. The following are
the assumptions used in the model:
Table 12: Financial Model Inputs
Input
Percentage
Interest Earned on Positive Fund Balances
0.5%
Borrowing Cost on Negative Fund Balances
0%
Inflation Rate
2%
6.3. PAYMENT TIMING
The timing of when the Town receives off-site levy payments from development is important from a
cash flow perspective. Payment timing varies depending on the type of development and the granting
of deferrals.
The financial model assumes levy payments for all new growth are received through two 50%
payments for those development areas that require subdivision, and a single (100%) payment for those
development areas not requiring subdivision. Prior to subdivision endorsement, development areas will
make a payment of 50% and the second payment is assumed to be received within 1 year anniversary of
Off-Site Levy Background Report | 22
subdivision endorsement. For development areas only requiring a development permit, and not
previously paying for each of the infrastructure categories in the Bylaw, 100% of the levies are due prior
to development permit release.
If lands subject to subdivision are entirely commercial or industrial, the CAO may, at the CAO's
discretion, defer payment of Off-Site Levies development permit release.
6.4. OFF-SITE LEVY UPDATES
The Off-Site Levies will be periodically reviewed and updated. Minor updates include updates to fund
balances, interest and borrowing costs, project costs and timing updates. Major Off-Site Levy Bylaw
updates are the result of a significant shift in methodology or substantial changes to anticipated
project lists. Periodic updates will occur to ensure levy information remains current and to help ensure
fairness and equity.
Off-Site Levy Bylaw updates may occur to all infrastructure categories or to only one infrastructure
category at a time, at the CAO's discretion.
6.5. SUMMARY OF OFF-SITE LEVY RATES
The following levy calculations are based on assumptions provided in this report. The levies will be
effective as of the passing of the Bylaw. The future levies are calculated using an inflation factor of 2%
per year.
Table 13: Summary of Off-site Levy Rates
Infrastructure Category
Off-Site Levy ($/ha)
Application
Water Supply, Treatment, Storage, and Pumping
$6,191
Town-Wide
Sanitary Sewage Treatment and Disposal
$11,894
Town-Wide
Water Distribution
$7,926
Town-Wide
Sewage Collection
SC1: East Sanitary Main
$7,047
Area-Specific
SC2: 1 Ave SE Sanitary Main
$1,743
Area-Specific
SC3: Hydraulic connection to Westend Sanitary
Sewer
$4,282
Town-Wide
Transportation - HWY Intersections
$26,612
Town-Wide
Off-Site Levy Background Report | 23
APPENDIX A: FIGURES
Figure 1. Development Area
Figure 2. Water Supply, Treatment, and Storage
Figure 3. Sewage Treatment and Disposal
Figure 4. Water Distribution
Figure 5. Sewage Collection
Figure 6. Sewage Catchments
Figure 7. Transportation
U:\Projects_CAL\0925\0022\02\D-Design\GIS\Projects\Pro_Projects\BD - Off-Site Levy - 20220405.aprx\BD - Off-Site Levy - Development Area - 20220620
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Development Area
(Town Boundary)
Legend
FIGURE 1
Off-Site Levy Update
Development Area
Coordinate System:
The accuracy & completeness of information shown on this
drawing is not guaranteed. It will be the responsibility of the user
of the information shown on this drawing to locate & establish the
precise location of all existing information whether shown or not.
NAD 1983 3TM 114
1:20,000
Scale:
Data Sources:
- Data provided by Town of Black Diamond
0
100 200 300
Meters
(When plotted at 11"x17")
¯
·
¯
N
Project #:
Author:
Checked:
Status:
Revision:
Date:
2022 / 6 / 29
A
Final
KN
SDF
0925.0022.02
Willow
Ridge Gate
3 Street SW
22 Highway
7 Hig
hway
W
Madison Street NE
22 Highway
4 Avenue SE
1 Street SW
4 Street SW
Valley Trail NE
1 Avenue SW
402 Avenue W
Government Road S
Imperial Drive SE
1 Avenue SE
N
o
rt
h
Royalite Way NE
Decalta Drive SE
Sunset Boulevard SE
5
Street SW
2 Street SW
5 Avenue SE
Centre Avenue
3 Street SE
1 Street SE
2 Avenue SW
3 Avenue SW
6 Avenue SW
3 Street NE
5 Avenue SW
4 Avenue SW
184
St
r
ee
t
W
2 Avenue NE
Royalite Way SE
1172
Driv
e
W
168 Street W
1160 Drive
W
1 Avenue NE
K
e
n
n
edy
D
r
iv
e
SE
176 Street W
160 Street W
418 Avenue W
402 Avenue W
386 Avenue W
144 Street W
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New Off-Site Levy Projects
Existing Off-Site Levy Projects
Existing Water Distribution System
Town Boundary
Legend
FIGURE 2
Off-Site Levy Update
Water Supply, Treatment,
Storage, and Pumping
Coordinate System:
The accuracy & completeness of information shown on this
drawing is not guaranteed. It will be the responsibility of the user
of the information shown on this drawing to locate & establish the
precise location of all existing information whether shown or not.
NAD 1983 3TM 114
1:15,000
Scale:
Data Sources:
- Data provided by Town of Black Diamond
0
100
200
300
Meters
(When plotted at 11"x17")
¯
·
¯
N
Project #:
Author:
Checked:
Status:
Revision:
Date:
2022 / 6 / 22
A
Final
KN
SDF
0925.0022.02
Willow
Ridge Gate
3 Street SW
22 Highway
7 Hig
hway
W
22 Highway
4 Avenue SE
1 Street SW
4 Street SW
1 Avenue SW
402 Avenue W
Government Road S
Imperial Drive SE
1 Avenue SE
N
o
rt
h
Royalite Way NE
5
Street SW
2 Street SW
5 Avenue SE
Centre Avenue
3 Street SE
1 Street SE
2 Avenue SW
3 Avenue SW
6 Avenue SW
3 Street NE
5 Avenue SW
4 Avenue SW
t
r
ee
t
W
2 Avenue NE
Royalite Way SE
1172
Driv
e
W
168 Street W
1160 Drive
W
1 Avenue NE
176 Street W
1
418 Avenue W
402 Avenue W
144 Street W
WS-1
Existing Water Storage Reservoir
Existing (WP-1) and Future (WP-2)
Pumphouse Upgrades
Area 2
Area 3
Area 6
Area 7
Area 5
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New Off-Site Levy Projects
Existing Sanitary Gravity Mains
Existing Sanitary Pressure Mains
Town Boundary
Legend
FIGURE 3
Off-Site Levy Update
Sanitary Sewage Treatment
and Disposal
Coordinate System:
The accuracy & completeness of information shown on this
drawing is not guaranteed. It will be the responsibility of the user
of the information shown on this drawing to locate & establish the
precise location of all existing information whether shown or not.
NAD 1983 3TM 114
1:15,000
Scale:
Data Sources:
- Data provided by Town of Black Diamond
0
100
200
300
Meters
(When plotted at 11"x17")
¯
·
¯
N
Project #:
Author:
Checked:
Status:
Revision:
Date:
2022 / 6 / 22
A
Final
KN
SDF
0925.0022.02
Willow
Ridge Gate
3 Street SW
22 Highway
7 Hig
hway
W
22 Highway
4 Avenue SE
1 Street SW
4 Street SW
1 Avenue SW
402 Avenue W
Government Road S
Imperial Drive SE
1 Avenue SE
N
o
rt
h
Royalite Way NE
5
Street SW
2 Street SW
5 Avenue SE
Centre Avenue
3 Street SE
1 Street SE
2 Avenue SW
3 Avenue SW
6 Avenue SW
3 Street NE
5 Avenue SW
4 Avenue SW
t
r
ee
t
W
2 Avenue NE
Royalite Way SE
1172
Driv
e
W
168 Street W
1160 Drive
W
1 Avenue NE
176 Street W
1
418 Avenue W
402 Avenue W
144 Street W
ST-1
Westend Lagoon Upgrades
Area 2
Area 3
Area 6
Area 7
Area 5
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New Off-Site Levy Projects
Existing Off-Site Levy Projects
Existing Water Distribution System
Town Boundary
Legend
FIGURE 4
Off-Site Levy Update
Water Distribution
Coordinate System:
The accuracy & completeness of information shown on this
drawing is not guaranteed. It will be the responsibility of the user
of the information shown on this drawing to locate & establish the
precise location of all existing information whether shown or not.
NAD 1983 3TM 114
1:15,000
Scale:
Data Sources:
- Data provided by Town of Black Diamond
0
100
200
300
Meters
(When plotted at 11"x17")
¯
·
¯
N
Project #:
Author:
Checked:
Status:
Revision:
Date:
2022 / 6 / 22
A
Final
KN
SDF
0925.0022.02
Willow
Ridge Gate
3 Street SW
22 Highway
7 Hig
hway
W
22 Highway
4 Avenue SE
1 Street SW
4 Street SW
1 Avenue SW
402 Avenue W
Government Road S
Imperial Drive SE
1 Avenue SE
N
o
rt
h
Royalite Way NE
5
Street SW
2 Street SW
5 Avenue SE
Centre Avenue
3 Street SE
1 Street SE
2 Avenue SW
3 Avenue SW
6 Avenue SW
3 Street NE
5 Avenue SW
4 Avenue SW
t
r
ee
t
W
2 Avenue NE
Royalite Way SE
1172
Driv
e
W
168 Street W
1160 Drive
W
1 Avenue NE
176 Street W
1
418 Avenue W
402 Avenue W
144 Street W
WD-1
4th Ave SE Water Main
WD-3
1 Ave SE Water Main
WD-4
6th St SE Water Main
Area 2
Area 3
Area 6
Area 7
Area 5
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Legend
FIGURE 5
Off-Site Levy Update
Sewage Collection
Coordinate System:
The accuracy & completeness of information shown on this
drawing is not guaranteed. It will be the responsibility of the user
of the information shown on this drawing to locate & establish the
precise location of all existing information whether shown or not.
NAD 1983 3TM 114
1:15,000
Scale:
Data Sources:
- Data provided by Town of Black Diamond
0
100
200
300
Meters
(When plotted at 11"x17")
¯
·
¯
N
Project #:
Author:
Checked:
Status:
Revision:
Date:
2022 / 6 / 22
A
Final
KN
SDF
0925.0022.02
Willow
Ridge Gate
3 Street SW
22 Highway
7 Hig
hway
W
22 Highway
4 Avenue SE
1 Street SW
4 Street SW
1 Avenue SW
402 Avenue W
Government Road S
Imperial Drive SE
1 Avenue SE
N
o
rt
h
Royalite Way NE
5
Street SW
2 Street SW
5 Avenue SE
Centre Avenue
3 Street SE
1 Street SE
2 Avenue SW
3 Avenue SW
6 Avenue SW
3 Street NE
5 Avenue SW
4 Avenue SW
t
r
ee
t
W
2 Avenue NE
Royalite Way SE
1172
Driv
e
W
168 Street W
1160 Drive
W
1 Avenue NE
176 Street W
1
418 Avenue W
402 Avenue W
144 Street W
SC-3
Hydraulic Connection to
Westend Sanitary Sewer
SC-1
East Sanitary Main
SC-2
1st Ave SE
Sanitary Main
Area 2
Area 3
Area 6
Area 7
Area 5
New Off-Site Levy Projects
New Off-Site Levy Projects
Existing Off-Site Levy Projects
Existing Sanitary Gravity Mains
Existing Sanitary Pressure Mains
Town Boundary
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The 10L/s of remaining capacity in the existing system
is allocated to new development or re-development within
the original town boundary.
Notes:
& Contributing Flow
Sewage Catchment
Town Boundary
Legend
FIGURE 06
Off-Site Levy Update
Sewage Catchments
Coordinate System:
The accuracy & completeness of information shown on this
drawing is not guaranteed. It will be the responsibility of the user
of the information shown on this drawing to locate & establish the
precise location of all existing information whether shown or not.
NAD 1983 3TM 114
1:15,000
Scale:
Data Sources:
- Data provided by Town of Black Diamond
0
100
200
300
Meters
(When plotted at 11"x17")
¯
·
¯
N
Project #:
Author:
Checked:
Status:
Revision:
Date:
2022 / 6 / 29
A
Final
KN
SDF
0925.0022.02
Willow
Ridge Gate
3 Street SW
22 Highway
7 Hig
hway
W
22 Highway
4 Avenue SE
1 Street SW
4 Street SW
1 Avenue SW
402 Avenue W
Government Road S
Imperial Drive SE
1 Avenue SE
N
o
rt
h
Royalite Way NE
5
Street SW
2 Street SW
5 Avenue SE
Centre Avenue
1 Street SE
2 Avenue SW
3 Avenue SW
6 Avenue SW
3 Street NE
5 Avenue SW
4 Avenue SW
184
St
r
ee
t
W
2 Avenue NE
Royalite Way SE
1172
Driv
e
W
168 Street W
1160 Drive
W
1 Avenue NE
176 Street W
418 Avenue W
402 Avenue W
144 Street W
&
&
&
Area 2
Area 3
Area 6
Area 7
Area 5
North Kaiser
South Kaiser
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New Off-Site Levy Projects
Town Boundary
Legend
FIGURE 7
Off-Site Levy Update
Transportation
Coordinate System:
The accuracy & completeness of information shown on this
drawing is not guaranteed. It will be the responsibility of the user
of the information shown on this drawing to locate & establish the
precise location of all existing information whether shown or not.
NAD 1983 3TM 114
1:15,000
Scale:
Data Sources:
- Data provided by Town of Black Diamond
0
100
200
300
Meters
(When plotted at 11"x17")
¯
·
¯
N
Project #:
Author:
Checked:
Status:
Revision:
Date:
2022 / 6 / 22
A
Final
KN
SDF
0925.0022.02
Willow
Ridge Gate
3 Street SW
22 Highway
7 Hig
hway
W
22 Highway
4 Avenue SE
1 Street SW
4 Street SW
1 Avenue SW
402 Avenue W
Government Road S
Imperial Drive SE
1 Avenue SE
N
o
rt
h
Royalite Way NE
5
Street SW
2 Street SW
5 Avenue SE
Centre Avenue
3 Street SE
1 Street SE
2 Avenue SW
3 Avenue SW
6 Avenue SW
3 Street NE
5 Avenue SW
4 Avenue SW
t
r
ee
t
W
2 Avenue NE
Royalite Way SE
1172
Driv
e
W
168 Street W
1160 Drive
W
1 Avenue NE
176 Street W
1
418 Avenue W
402 Avenue W
144 Street W
T-2
6th St and
Highway 7 (Centre Ave)
Intersection Upgrades
T-1
3rd St and
Highway 7 (Centre Ave)
Intersection Upgrades
Area 2
Area 3
Area 6
Area 7
Area 5
Off-Site Levy Background Report | 24
APPENDIX B:
REDEVELOPMENT CALCULATION
EXAMPLES
Off-Site Levy Background Report | 25
REDEVELOPMENT CALCULATION EXAMPLES
COMMERCIAL USE TO COMMERCIAL USE
Overview
Development Area: 1 ha
Offsite Levy: $56,905* ha
Existing Use: Commercial Use - 100m2
Proposed Development
Commercial Use - 300m2
Incremental Intensity: 0.67 [(300m2 - 100m2)/300m2)]
Redevelopment Levy Calculation
$56,905* x 1 ha x 0.67 = $38,126
RESIDENTIAL USE TO RESIDENTIAL USE
Overview
Development Area: 0.25 ha
Offsite Levy: $56,905* ha
Existing Use: Residential Use - 1 units
Proposed Development
Residential Use - 2 units
Incremental Intensity: 0.5 [(2-1)/2]
Redevelopment Levy Calculation
$56,905 x 0.25 ha x 0.5 = $7,113
*Assumes parcels have not paid levies for any purpose in the past
and are subject to all levies save for area specific sanitary
collection levels
Redevelopment Levy
Calculation = Off-Site Levy X
Development Area X
Incremental Intensity
Incremental Intensity accounts for
existing uses on the site, which may be
reflected through the number of units
or total floor area. Incremental Intensity
will be determined by the Town of Black
Diamond utilizing historical
development intensity and proposed
development plans to establish base
line and future intensity of use levels.