Bylaw No. 2099

Peace River, Alberta

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TOWN OF PEACE RIVER BYLAW NO. 2099 BEING A BYLAW OF THE TOWN OF PEACE RIVER IN THE PROVINCE OF ALBERTA TO ESTABLISH AN OFF-SITE LEVY. WHEREAS, a Council may pass a Bylaw providing for the imposition and payment of off-site levies in respect of lands that are to be developed, or subdivided, and to authorize agreements to be entered into in respect of the payment of the off-site levies; and WHEREAS, certain lands within the corporate boundaries of the Town are proposed for subdivision or residential, commercial, or industrial developments; and WHEREAS, Council for the Town of Peace River requires an expenditure for the capital costs of: a. water supply, transmission, treatment, storage and distribution facilities; b. sanitary sewage collection, treatment, movement and disposal facilities; c. roads required for, or impacted by, subdivision or development; and d. land required for or in connection with any faci lities, as mentioned above, because of population growth now occurring in the Town; and WHEREAS, the Town engaged the firm of Corvus Business Advisors to prepare a fair and equitable calculation of off-site levies in accordance with the purposes of the Municipal Government Act; and WHEREAS, the Town may enact a Bylaw to impose and provide for the payment of off-site levies, to set out the object of each off-site levy and to indicate how the amount of each off-site levy was determined; and WHEREAS, the Town met with representatives of the development industry to address and define existing and future infrastructure requirements of the Town, to allocate the costs to the beneficiaries of development and to assess funding alternatives; and WHEREAS, following the consu ltation with the representatives of the development industry, and based upon the principles agreed upon, the Town administration presented a report to Council for consideration and direction; and WHEREAS, the Town currently imposes and collects an off-site levy; and Page 1 of 7 BYLAW NO. 2099 WHEREAS, Council has advertised its intention to consider the provisions of this Bylaw pursuant to Section 606 of the Municipal Government Act.; NOW THEREFORE, the Council of the Town of Peace River, in the Province of Alberta, duly assembled, enacts as follows: TITLE 1. This Bylaw may be cited as the "Off-Site Levy Bylaw". DEFINITIONS 2. For the purposes of this Bylaw, the following words shall be defined as follows: (a) "Act" means the Municipal Government Act, R.S.A. 2000, c.M-26 as amended or replaced and regu lations passed pursuant to the Act; (b) "Applicant" means the person who applies for subdivision or development approval; (c) "Chief Administrative Officer" means the Chief Administrative Officer for the Town and includes any person appointed as the designate for the Chief Administrative Officer or any person appointed to act in the absence of the Chief Administrative Officer; (d) "Council" means the Council of the Town of Peace River; (e) "Development" means development as defined in the Act; (f) "Development Agreement" means an agreement as referred to in the Act in sections 650 and 655; (g) "Development Area" means that area of a parcel of land that is to be developed pursuant to a development permit, and for greater certainty but without restricting the generality of the foregoing, includes that area of land to be used for the principal uses, accessory uses, parking, loading, vehicle access points, walkways, lighting, landscaping and fencing; (h) "Off-site levy" means an off-site levy imposed and created by this Bylaw pursuant to the Act for a specific infrastructure as identified in section 4 within this Bylaw; (i) "Off-site levy Policies" means those policies established in the Town of Peace River by the Council of the municipality from time to time for the purposes of carrying out the intentions of this Bylaw and exercising the discretions and powers contemplated within this Bylaw; Page 2 of 7 BYLAW NO. 2099 (j) "Parcel of land" has the meaning provided for in Part 17 of the Act; (k) "Plan of Subdivision" has the meaning provided for in the Act; (I) "Prime Rate" means at any time the annual rate of interest published by the Alberta Treasury Branch at its main branch in Peace River as its prime rate; (m) "Road" means land (i) shown as a road on a plan of survey that has been filed or registered in a land titles office, or (ii) used as a public road, and includes a bridge forming part of a public road and any structure incidental to a public road; (n) "Subdivision" has the meaning provided for in the Act; (o) "Subdivision Area" means that area of a parcel of land, less environmental reserve, municipal reserve, and land for road that is the subject of a subdivision and that is proposed for development but does not include the remnant, if any; and (p) "Town" means the municipal corporation of the Town of Peace River or where the context requires, the area within the boundaries of the Town. ESTABLISHMENT OF OFF-SITE LEVY 3. The Town may impose an off-site levy as a condition of subdivision or development in accordance with this Bylaw and any applicable policy, and for upon I.and which no off-site levy has previously been paid . OBJECT OF OFF-SITE LEVY 4. The object of the off-site levies is to pay for all or part of the capital costs of the following: (a) new or expanded facilities for the storage, transmission, treatment, or supplying of water; (b) new or expanded facilities for the collection, treatment, movement or disposal of sanitary sewage; (c) new or expanded roads required for, or impacted by, a subdivision or development; and (d) land required for, or in connection with, any facilities described in (a) to (c) above as determined in the Town of Peace River Off-site Page 3 of 7 BYLAW NO. 2099 Levy Update May 2021 and incorporated into this Bylaw as Schedule "D". DIVISION INTO AREAS 5. For the purposes of imposing an off-site levy in accordance with the Act, the Town is divided into areas, as shown in Schedule "A". AMOUNT OF OFF-SITE LEVY 6. The amount of each off-site levy is set out in Schedule "B". IMPOSITION OF OFF-SITE LEVY 7. The following define the imposition of off-site levies under this Bylaw: (a) The Town may impose an off-site levy on each hectare of subdivision area as a condition of subdivision. (b) The Town may impose an off-site levy on each hectare of development area within the Town as a cond ition of development approval. (c) Off-site levies are payable in accordance with section 8 of this Bylaw. PAYMENT OF OFF-SITE LEVY 8. The following define the payment of off-site levies under this Bylaw: (a) The amount of the off-site levies is calculated as set out in Schedule (b) Where an off-site levy is imposed on a subdivision area, the applicant shall pay the off-site levy upon execution of the development agreement, unless otherwise specified in the development agreement. (c) Where an off-site levy is imposed on a development area, the applicant shall pay the off-site levy on the date of issuance of a Development Permit unless otherwise specified in a development agreement. (d) If a development agreement does provide for deferred payment of any off-site levy or portion of an off-site levy, the development agreement shall provide that: (i) any portion of the off-site levy deferred shall be protected through security on terms outlined in the development agreement; (ii) the applicant shall pay the off-site levy at the time specified in the development agreement; and Page 4 of 7 BYLAW NO. 2099 (iii) the deferred portion of the off-site levy shall be subject to increase or decrease, in accordance with the terms in this Bylaw. (e) Interest on any outstanding off-site levy amount shall be calculated from the time it is payable at prime rate plus 3% compounded annually. (f) Any payment of an off-site levy pursuant to this Bylaw which is not made when due sha ll be a debt owing to the Town by the applicant. This provision does not in any way affect any other remedy available to the Town for late or non-payment of an off-site levy. (g) In addition to paragraph 8(f), where an applicant fails, neglects, or refuses to pay the off-site levy imposed when due, the Town may refuse to: (i) endorse a Plan of Subdivision; (ii) issue a development permit; or (iii) issue an occupancy permit. until the applicant has paid the off-site levy and any interest. AGREEMENTS 9. The entering into of a development agreement in respect of payment of off-site levies as applicable is hereby authorized. REVIEW OF OFF-SITE LEVY RATES 10. (a) The Town shall review the off-site levy rates once every two years. (b) After the review has been completed, the Town may amend the Bylaw to update the off-site levy rates. ANNUAL REPORT 11. The Town shall report annually to Council regarding the status of off-site levies in a format acceptable to the Chief Administrative Officer. SEVERABILITY 12. If any portion of this Bylaw is declared invalid by a court of competent jurisdiction, then the invalid portion shall be severed. TRANSITION 13. (a) This Bylaw applies to: (i) any subdivision where the date of subdivision approval occurs on or after the date this Bylaw comes into force; and (ii) any development where the date of issuance of a development permit occurs on, or after, the date t his Bylaw comes into force . Page 5 of 7 BYLAW NO. 2099 (b) The provisions of Bylaw 2044 shall continue to apply to: (i) any subdivision where the date of subdivision approval occurs before the date this Bylaw comes into force; and (ii) any development where the date of issuance of a development permit occurs before the date this Bylaw comes into force . SCHEDULES 14. This Bylaw contains: (a) Schedule "A" - Off-site Levy Bylaw Areas; (b) Schedule "B" - Amount of Off-site Levies; (c) Schedule "C" - Ca lcu lation of Off-site Levies; and (d) Schedule 11D" - Off-site Levy Update May 2021, which forms a part of this Bylaw. REPEAL 15. Subject to section 13, Bylaw 2044 and its amendments, as amended, are hereby repealed . EFFECTIVE DATE 16. This Bylaw shall come into force and have effect on the date of third and final reading. RULES OF INTERPRETATION 17. The headings in this Bylaw are for reference purposes only and do not form a part of the Bylaw. PASSAGE OF POLICIES 18. Nothing in this Bylaw precludes the Town from : (a) passing Bylaws to impose further or different off-site levies, duly enacted by Bylaw, on any land in respect of which the Town has not collected the off-site levies imposed under this Bylaw or any previous off-site levy Bylaw authorized by statute; or (b) adopting Council policies in relation to: (i) the process by which expenditures incurred by developers for infrastructure with capacity in excess of the capacity required to service their development is shared with subsequent developers; Page 6 of 7 BYLAW NO. 2099 (ii) the process by which the amount payable by a developer for off-site levies is off-set against the developer's cost to construct off-site levy infrastructure (off-setting); and (iii) the process governing when a developer may construct off-site levy infrastructure which benefits other parties, at whose cost such construction will occur, and how a developer who has paid the cost of such construction is to be reimbursed for the costs in excess of his proportionate share; and (iv) the applicability of the off-site levy in particular subdivision and development circumstances; and (c) adopting procedures or guidelines for the assistance and direction of Town administration with respect to the implementation of th is Bylaw. READ a first time this ---4£ day of fY}u."<f ,20_Q.L- READ a second time this ~ day of_]c ~ ,~I'-+'---' 20..2.L_. ) READ a third and final time this~ day of 0cd'J I 20;;?._L. SIGNED by the Mayor and Chief Administrative Officer this 28 day of -:1 ,\,( J 20~ . Tho masTarpJ Mayor Page 7 of 7 BYLAW NO. 2099 BYLAW NO. 2099 SCHEDULE "A" - OFF-SITE LEVY BYLAW AREAS 49 [[J Off-Site Levy Area 5 6 12 1 0 0.2750.55 BYLAW NO. 2099 SCHEDULE "B" - AMOUNT OF OFF-SITE LEVIES Area Ref # Road Off-Site Levy (per Ha) Water Off-Site Levy (per Ha) Sanitary Sewer Off-Site Levy (per Ha) Total (per Ha) 1 $ 16,209 $ 8,221 $ 10,932 $ 35,362 2 $ 16,209 $ 8,221 $ 10,932 $ 35,362 3 $ 16,674 $ 8,221 $ 10,932 $ 35,827 4 $ 16,209 $ 8,221 $ 10,932 $ 35,362 5 $ 16,209 $ 8,221 $ 10,932 $ 35,362 6 $ 16,209 $ 8,221 $ 10,932 $ 35,362 7 $ 16,209 $ 8,221 $ 10,932 $ 35,362 8 $ 16,674 $ 8,221 $ 10,932 $ 35,827 9 $ 18,635 $ 8,221 $ 10,932 $ 37,788 10 $ 16,209 $ 8,221 $ 10,932 $ 35,362 11 $ 16,209 $ 10,127 $ 13,095 $ 39,431 12 $ 16,209 $ 10,127 $ 13,095 $ 39,431 13 $ 16,209 $ 10,127 $ 13,095 $ 39,431 14 $ 16,209 $ 8,221 $ 10,932 $ 35,362 15 $ 18,170 $ 8,221 $ 10,932 $ 37,323 16 $ 16,674 $ 8,221 $ 10,932 $ 35,827 17 $ 16,209 $ 8,221 $ 10,932 $ 35,362 18 $ 16,209 $ 10,127 $ 13,095 $ 39,431 19 $ 16,209 $ 10,127 $ 13,095 $ 39,431 20 $ 16,625 $ 8,221 $ 10,932 $ 35,778 21 $ 16,625 $ 8,221 $ 10,932 $ 35,778 22 $ 16,625 $ 10,127 $ 13,095 $ 39,847 23 $ 16,209 $ 8,221 $ 10,932 $ 35,362 24 $ 16,209 $ 10,127 $ 13,095 $ 39,431 25 $ 16,209 $ 10,127 $ 13,095 $ 39,431 26 $ 16,209 $ 10,127 $ 13,095 $ 39,431 27 $ 16,674 $ 10,127 $ 13,095 $ 39,896 28 $ 16,209 $ 10,127 $ 13,095 $ 39,431 29 $ 16,209 $ 10,127 $ 13,095 $ 39,431 30 $ 16,209 $ 10,127 $ 13,095 $ 39,431 31 $ 16,209 $ 10,127 $ 13,095 $ 39,431 32 $ 15,879 $ 8,221 $ 10,932 $ 35,032 33 $ 16,625 $ 10,127 $ 13,095 $ 39,847 34 $ 19,051 $ 10,127 $ 13,095 $ 42,273 35 $ 16,625 $ 10,127 $ 13,095 $ 39,847 36 $ 17,090 $ 10,127 $ 13,095 $ 40,312 37 $ 15,879 $ 8,221 $ 10,932 $ 35,032 38 $ 15,879 $ 8,221 $ 10,932 $ 35,032 39 $ 16,625 $ 11,866 $ 9,086 $ 37,577 40 $ 19,051 $ 11,866 $ 9,086 $ 40,003 41 $ 18,635 $ 11,866 $ 9,086 $ 39,587 42 $ 18,586 $ 11,866 $ 9,086 $ 39,538 43 $ 16,210 $ 11,866 $ 9,086 $ 37,162 44 $ 18,586 $ 15,432 $ 12,652 $ 46,670 Area Ref # Road Off-Site Levy (per Ha) Water Off-Site Levy (per Ha) Sanitary Sewer Off-Site Levy (per Ha) Total (per Ha) 45 $ 26,674 $ 15,432 $ 12,652 $ 54,758 46 $ 19,051 $ 15,432 $ 12,652 $ 47,135 47 $ 16,625 $ 15,432 $ 12,652 $ 44,709 48 $ 16,625 $ 15,432 $ 12,652 $ 44,709 49 $ 16,210 $ 11,866 $ 9,086 $ 37,162 50 $ 16,210 $ 8,221 $ 13,095 $ 37,526 51 $ 16,210 $ 8,221 $ 13,095 $ 37,526 52 $ 16,625 $ 10,127 $ 13,095 $ 39,847 BYLAW NO. 2099 SCHEDULE "C" - CALCULATION OF OFF-SITE LEVIES The off-site levy for water, sanitary sewer and roads shall be calculated in accordance with the following: Water Off-site Levy = subdivision area or development area (in hectares) X Amount of Off-site levy set out in Schedule "B", section 1 above Sanitary Sewer Off-site Levy = subdivision area or development area (in hectares) X Amount of Off-site levy set out in Schedule "B", section 1 above Road Off-site Levy = subdivision area or development area (in hectares) X Amount of Off-site levy set out in Schedule "B", section 1 above Schedule "D" - Off-site Levy Update May 2021 Offsite Levy Rate Update May 14, 2021 TOWN OF PEACE RIVER A L B E A T A Town of Peace River Offsite Levy Rate Update pg. 2 May 14, 2021 1 INTRODUCTION The Town of Peace River enacted its current offsite levy bylaw (Bylaw 2044) in May 2019, an update of Bylaws 1851 and 1952. The bylaw includes charges for transportation, water, and sanitary offsite infrastructure (stormwater management facilities are managed outside the offsite levy bylaw). As stipulated in the MGA, offsite levy rates must be updated regularly to account for changing variables, and an update report provided to Council. CORVUS Business Advisors was retained by the Town in 2011 to update the Peace River Offsite Levy Rate Model. A report containing the amended variables and new rates was presented to Council. The weighted average rates increase to approximately $56,500 per ha (on average). However, Council did not approve amendment of the bylaw/rates. As a result, the Town has been approving developments and collecting offsite levies based on the original rates established in 2009. In April 2014, the Town retained CORVUS Business Advisors to facilitate a rate update. This report outlines the methodology used in updating and establishing offsite levies and the resulting rates for each infrastructure type and each offsite levy area. The average approved rates called for an adjusted rate (70% of the full amount) in 2014 totalling $58,348 per hectare and increasing to 100% of the full amount totalling $83,355 in 2016. For the 2019 update, Town staff continued to use the CORVUS model and made several enhancements to the existing methodology. Capital projections over 25 years have been rationalized, as have the portion attributable to future development. As such, the rates are showed a significant reduction to an average rate of $40,886 per hectare. The 2021 model maintains these changes and continues further improvement and refinement to methodology. Based on the results of the update, the 2021 average rate per hectare is $37,297. 1.1 Methodology Town staff reviewed and amended the list of offsite projects for transportation, water, and sanitary infrastructure including costs incurred and future costs required to support growth plans within Town of Peace River. New projects were added in alignment with the most recent engineering analyses within the Town. Cost estimates and % allocations to new development for projects established in 2014 were significantly modified, and cost estimates and % allocations for new projects were added. When Town planners established the offsite levy areas/map in 2009 a grid system contained in the Town's planning database was used. As a result, offsite levy areas often overlapped quarter section areas and other natural geographic features. In addition, various lands were left out of the original mapping. To remedy these shortfalls, Town planners revised the offsite levy areas/map during this year's update. All lands within Town boundaries are now included, including recent annexation areas; and, each project benefiting area was reviewed using the new offsite areas established by Town planners. Town of Peace River Offsite Levy Rate Update pg. 3 May 14, 2021 The map has been updated to capture changes to areas within the town. The information contained in the current Town offsite levy rate model was current to December 31st, 2013. During this review, offsite levy expenditure and receipt information was updated to December 31st, 2017, the most current completed year-end. Receipts and costs pertaining to 2017 and prior are treated as an "actual"; receipts and costs pertaining to 2020 and beyond are treated as an "estimate". When the next update is completed in 2022, 2021 receipts and costs will be converted from "estimates" to "actuals". Offsite levy rates are not intended to stay static; they are based upon 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. Should information change, it will be reflected in a future update, and rates adjusted accordingly. Section 10(a) of Bylaw 2099 states that the rates will be updated every second year. The Town utilizes the CORVUS offsite levy model to manage rates. This model is in use in dozens of Alberta municipalities. The model utilizes a "full cost" methodology where by the infrastructure costs, inflation, construction staging, development staging, financing costs, and reserve interest earning and charging impacts are all used to determine rates and allocate all costs to developers on an equitable basis, based on degree of benefit. With the CORVUS model in place, the Town is in a position to quickly and efficiently update offsite levy rates each year upon completion of year-end finance activities. 2 OFFSITE LEVY DEVELOPMENT LANDS AND STAGING Town of Peace River was previously divided into 56 offsite levy areas. When Town planners established the offsite levy areas/map in 2009 a grid system contained in the Town's planning database was used. As a result, offsite levy areas often overlapped quarter section areas and other natural geographic features. In addition, various lands were left out of the original mapping. To remedy these shortfalls, this year Town planners revised the offsite levy areas/map during this year's update. All lands within Town boundaries are now included, including recent annexation areas. New area boundaries conform to natural geographic and manmade barriers (e.g., highways), as well as sanitary basins identified by Town engineering staff. Each area is further divided into sub-areas by land use type, either "residential", "commercial/industrial", or "other". All offsite infrastructure costs are allocated to one or more offsite levy areas. This has now increased the Town into 70 offsite levy areas. The current offsite levy area map are shown below. Town of Peace River Offsite Levy Rate Update pg. 4 May 14, 2021 Current Offsite Levy Areas 49 [!] Off-Site Levy Area 5 6 12 13 TOWN OF PEACE RIVER 0 0.2750.55 A l O C 11 T A Town of Peace River Offsite Levy Rate Update pg. 5 May 14, 2021 Total net development area, the amount of land available for development across all offsite levy areas, is ~973 ha. as outlined in the table below. In calculating net development area only those lands remaining to be developed within the area that have not previously paid offsite levies have been considered (as required by legislation/regulation). Town planning staff have made allowances in net development area calculations for environmental reserves, municipal reserves, and right of way. Offsite Levy Net Development Area Area Ref. # Development Area Location Land Use Gross Area (ha.) Environmental Reserves (ha.) Sub- total Municipal Reserves Net Development Area (ha.) 1.1 St. Germaine ASP Residential Residential 43.82 1.10 42.72 4.27 38.45 1.2 St. Germaine ASP Commercial Commercial/Industrial 17.45 1.08 16.37 1.68 14.69 2.1 St. Germaine ASP Commercial Commercial/Industrial 25.27 2.05 23.22 0.62 22.60 3.1 Westview ASP Residential Residential 15.13 15.13 1.51 13.62 3.2 Westview ASP Commercial/Industrial Commercial/Industrial 31.67 31.67 - 31.67 4.1 Peace Ridge ASP Industrial Commercial/Industrial 10.42 3.00 7.42 1.00 6.42 4.2 SE 28-83-22-5 Residential 42.95 42.95 4.30 38.65 5.1 SE 1-84-22-5 Residential 26.76 26.76 2.68 24.08 5.2 SE 1-84-22-5 Commercial/Industrial 3.92 3.92 3.92 - 6.1 Peace View ASP Residential Residential 43.55 43.55 4.36 39.20 6.2 Peace View ASP Industrial Commercial/Industrial 15.29 15.29 1.53 13.76 7.1 NW-36-83-22-5 Other 45.27 45.27 4.53 40.74 7.2 NW-36-83-22-6 Commercial/Industrial 0.91 0.91 - 0.91 8.1 Mobile Home Park Residential - - - - 8.2 West Hill Commercial - Freson/Walmart Commercial/Industrial 23.45 23.45 2.35 21.11 9.1 West Hill Cnd Tire/No Frills/Industrial Commercial/Industrial 2.67 2.67 - 2.67 10.1 Peace Ridge ASP Residential Residential 24.90 7.00 17.90 5.90 12.00 10.2 Peace Ridge ASP Industrial Commercial/Industrial 7.13 1.00 6.13 1.00 5.13 11.1 Peace Ridge ASP Residential/Westbrook/NW 24 83 22 5 Residential 87.01 3.00 84.01 8.40 75.61 12.1 SW-24-83-22-5 Residential 63.24 63.24 6.32 56.92 13.1 NW-13-83-22-5 Residential 52.87 52.87 5.29 47.58 14.1 NE 36-83-22-5 Residential 8.53 8.53 0.85 7.68 14.2 NE 36-83-22-5 Other 40.87 40.87 4.09 36.78 15.1 SE 36-83-22-5 Residential 0.86 0.86 0.09 0.77 15.2 SE 36-83-22-5 Commercial/Industrial 4.61 4.61 0.46 4.15 16.1 Saddleback Residential Residential 9.57 9.57 - 9.57 16.2 Saddleback Industrial Commercial/Industrial 0.13 0.13 - 0.13 17.1 Half SE 25-83-22-5 Residential 31.94 31.94 3.19 28.75 18.1 NE 24-83-22-5/ Half SE 25-83-22-5 Residential 91.48 91.48 9.15 82.33 19.1 SE 24-83-22-5 Residential 59.25 59.25 5.93 53.33 20.1 North West Industrial Other 7.32 7.32 - - - 21.1 North West Industrial Commercial/Industrial 11.43 11.43 1.14 10.29 22.1 Lions Camp Ground Other 15.12 15.12 1.51 13.61 23.1 Misery Mountain NW-30-83-21-5 Valleyview ASP Other 49.79 49.79 - - - 24.1 Misery Mountain SW-30-83-21-5 Other 68.86 68.86 - - - 25.1 NW 19-83-21-5 Residential 48.81 48.81 4.88 43.93 26.1 Citadel ASP Residential Residential 12.97 0.42 12.55 1.36 11.19 26.2 Citadel ASP Commercial & Industrial Lot Commercial/Industrial 0.95 0.95 0.95 27.1 River Lot/Upper West Peace Residential 0.06 0.06 - 0.06 28.1 River Lot 41 Residential 44.39 44.39 4.44 39.95 29.1 River Lot 40 Residential 27.49 27.49 2.75 24.74 30.1 River Lot 39 Residential 31.92 31.92 3.19 28.73 31.1 River Lot 38 Residential 11.03 11.03 1.10 9.93 32.1 Bewley Island SW-6-84-21-5 Other 14.31 14.31 - - - 33.1 Anderson Development Area Other 8.64 5.61 3.03 0.30 2.73 34.1 Lower West Peace Residential 0.17 0.17 - 0.17 35.1 Rosedale Residential 5.00 4.25 0.75 0.08 0.68 36.1 Shaftesbury Estates Residential 12.47 12.47 1.25 11.22 37.1 Island Other 39.85 39.85 - - - 38.1 Island SE-19-83-21-5 Other 12.01 12.01 - - - 39.1 Norglen ASP SW 8-84-21-5 Residential 3.58 3.58 0.36 3.22 39.2 Norglen ASP Other 12.98 12.98 - - - Town of Peace River Offsite Levy Rate Update pg. 6 May 14, 2021 40.1 North End - North Residential - - - - 41.1 Norglen ASP NW 8-84-21-5 Other 21.35 21.35 - - - 42.1 North End - Mid Residential 0.52 0.52 - 0.52 43.1 Frac SW 5-84-21-5/Frac NW 32-83-21-5 Other 73.93 73.93 - - - 44.1 North End - South Residential - - - - 44.2 North End - South Commercial/Industrial 0.36 0.36 - 0.36 45.1 Downtown Residential 0.66 0.66 - 0.66 45.2 Downtown Commercial/Industrial 1.54 1.54 - 1.54 45.3 Downtown Other 4.31 4.31 - - - 46.1 South End Residential 8.43 8.43 0.84 7.59 46.2 South End Other 6.92 6.92 - - - 47.1 South End Residential - - - - 47.2 South End Other 11.57 11.57 - - - 48.1 South End Other 30.52 30.52 - - - 49.1 SE 8-84-21-5 Other 63.68 63.68 - - - 50.1 St. Germaine Urban Reserve Other 22.56 - 22.56 2.26 20.30 51.1 River Lot/Upper West Peace Other 31.39 31.39 - - - 52.1 Shaftesbury Estates Other 13.21 - 13.21 1.32 11.89 Total 1,561.02 477.30 1,083.72 110.19 973.54 Summary of Offsite Levy Net Development Area Description ha. Gross Development Area 1,561.02 Less Environment Reserve 477.30 Less Municipal Reserve 110.19 Net Development Area 973.54 *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 Town. Net development area is defined as follows: - Gross Area - The area of lands to be developed in hectares that have not previously paid an offsite levy. - Less: Any environmental areas contained within the development area Including environmental reserves and environmental easements. - Less: A 10% allowance for Municipal Reserves. - Less: The measurement of arterial right of way that bisects the development lands. - Equals: Net Developable Area, which is the area subject to offsite levies. 2.1 Development Staging Some municipalities use 'Total Net Lands' available in their community to establish offsite levy charges (called a 'simple" cost over area approach). This approach has several flaws: 1. It assumes that all lands must develop in order to pay for the infrastructure. In many communities, this could mean 50, 75, or even 100+ years' worth of development. These are not reasonable repayment periods, and they can act as disincentives to developers considering the front-ending of infrastructure, and 2. Amortizing repayment over very long periods means that someone developing 100+ years from now could be paying for infrastructure that was placed in the ground 100 years ago. In these Town of Peace River Offsite Levy Rate Update pg. 7 May 14, 2021 circumstances, the linkage between payment and benefit is more difficult and could place the municipality at risk of legal challenge. Instead, a rate planning period of 25 years is used. This planning period is used by many municipalities as it provides a reasonable time frame to recoup the costs associated with offsite infrastructure construction (without risk of "front-ending stagnation"), and it aligns with the timeframes of many municipal capital planning and construction cycles. Of the ~973 ha. of net development area available across all offsite levy areas, planners estimate that approximately 14% of this land (~138 ha.) will develop during the rate planning period as shown in the tables below; an increase of 15% from the ~161 ha. that was forecast to develop during the previous rate update. Summary of Development during the Rate Planning Period (25 years) Developed Since Last Bylaw Update 31.60 3.2% Developed In Next 25 Years 134.81 13.8% Developed Beyond 25 Years 807.12 82.9% Net Development Area 973.53 Net development areas have been further classified according to anticipated land use. Land use classifications include: (1) Residential, and (2) Commercial/Industrial, and (3) Other. The table below outlines the anticipated development by land use type during the rate planning period, in comparison to the previous rate update. Development by Land Use Type during the Rate Planning Period (25 years) & Comparison to Previous Estimates Land Use Type CURENT Net Development Area In Next 25 Years % Land Use Type PREVIOUS Net Development Area In Next 25 Years % Residential 73.51 54.5% Residential 74.59 53.9% Commercial/Industrial 61.30 45.5% Commercial/Industrial 63.77 46.1% Other - 0.0% Other - 0.0% Total 134.81 100% Total 138.36 100% Town of Peace River Offsite Levy Rate Update pg. 8 May 14, 2021 Anticipated Development during the Rate Planning Period (25 Years) Area Refence # Development Area Location Land Use Area Developed in Next 25 Years 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 1.1 St. Germaine ASP Residential Residential 17.170 2.40 2.43 2.46 2.45 2.46 2.48 2.49 1.2 St. Germaine ASP Commercial Commercial/Industrial - 2.1 St. Germaine ASP Commercial Commercial/Industrial 23.930 2.35 2.30 0.73 2.10 2.10 2.00 2.03 2.03 2.06 2.07 2.07 2.09 3.1 Westview ASP Residential Residential 6.320 2.17 3.12 1.03 3.2 Westview ASP Commercial/Industrial Commercial/Industrial 25.260 3.05 1.14 1.40 1.86 1.93 1.61 2.50 2.45 2.45 2.45 2.35 2.07 4.1 Peace Ridge ASP Industrial Commercial/Industrial 6.220 0.15 2.35 2.25 1.47 4.2 SE 28-83-22-5 Residential - 5.1 SE 1-84-22-5 Residential - 5.2 SE 1-84-22-5 Commercial/Industrial - 6.1 Peace View ASP Residential Residential - 6.2 Peace View ASP Industrial Commercial/Industrial - 7.1 NW-36-83-22-5 Other - 7.2 NW-36-83-22-6 Commercial/Industrial 0.910 0.91 8.1 Mobile Home Park Residential - 8.2 West Hill Commercial - Freson/Walmart Commercial/Industrial - 9.1 West Hill Cnd Tire/No Frills/Industrial Commercial/Industrial 2.120 1.45 0.67 10.1 Peace Ridge ASP Residential Residential 11.640 2.72 2.76 2.70 2.64 0.82 10.2 Peace Ridge ASP Industrial Commercial/Industrial - 11.1 Peace Ridge ASP Residential/Westbrook/NW 24 83 22 5 Residential 5.650 1.43 1.70 2.52 12.1 SW-24-83-22-5 Residential - 13.1 NW-13-83-22-5 Residential - 14.1 NE 36-83-22-5 Residential - 14.2 NE 36-83-22-5 Other - 15.1 SE 36-83-22-5 Residential - 15.2 SE 36-83-22-5 Commercial/Industrial - 16.1 Saddleback Residential Residential 5.240 1.00 1.25 0.05 2.94 16.2 Saddleback Industrial Commercial/Industrial 0.130 0.13 17.1 Half SE 25-83-22-5 Residential - 18.1 NE 24-83-22-5/ Half SE 25-83-22-5 Residential - 19.1 SE 24-83-22-5 Residential - 20.1 North West Industrial Other - 21.1 North West Industrial Commercial/Industrial - 22.1 Lions Camp Ground Other - 23.1 Misery Mountain NW-30-83-21-5 Valleyview ASP Other - 24.1 Misery Mountain SW-30-83-21-5 Other - 25.1 NW 19-83-21-5 Residential - 26.1 Citadel ASP Residential Residential 10.110 3.60 3.06 2.00 1.45 26.2 Citadel ASP Commercial & Insdustrial Lot Commercial/Industrial 0.950 0.95 27.1 River Lot/Upper West Peace Residential 0.060 0.06 28.1 River Lot 41 Residential - 29.1 River Lot 40 Residential - 30.1 River Lot 39 Residential - 31.1 River Lot 38 Residential - 32.1 Bewley Island SW-6-84-21-5 Other - 33.1 Anderson Development Area Other - 34.1 Lower West Peace Residential 0.170 0.17 35.1 Rosedale Residential - 36.1 Shaftesbury Estates Residential 10.550 1.00 2.72 1.92 0.94 2.94 1.03 37.1 Island Other - 38.1 Island SE-19-83-21-5 Other - 39.1 Norglen ASP SW 8-84-21-5 Residential - 39.2 Norglen ASP Other . 40.1 North End - North Residential - 41.1 Norglen ASP NW 8-84-21-5 Other - 42.1 North End - Mid Residential 0.520 0.52 43.1 Frac SW 5-84-21-5/Frac NW 32-83-21-5 Other - 44.1 North End - South Residential - Town of Peace River Offsite Levy Rate Update pg. 9 May 14, 2021 Area Refence # Development Area Location Land Use Area Developed in Next 25 Years 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 44.2 North End - South Commercial/Industrial 0.240 0.24 45.1 Downtown Residential - 45.2 Downtown Commercial/Industrial 1.540 0.60 0.94 45.3 Downtown Other - 46.1 South End Residential 6.080 1.79 1.37 2.82 0.10 46.2 South End Other - 47.1 South End Residential - 47.2 South End Other - 48.1 South End Other - 49.1 SE 8-84-21-5 Other - 50.1 St. Germaine Urban Reserve Other - 51.1 River Lot/Upper West Peace Other - 52.1 Shaftesbury Estates Other - Total 134.81 6.71 6.60 6.27 5.94 5.72 5.61 5.50 5.39 5.39 5.39 5.17 5.17 5.17 5.17 5.06 4.95 4.84 4.62 4.62 4.40 4.46 4.49 4.51 4.53 4.55 4.58 Town of Peace River Offsite Levy Rate Update pg. 10 May 14, 2021 3 TRANSPORTATION 3.1 Transportation Offsite Infrastructure In order to support growth in the Town, transportation offsite infrastructure is required. Capital plans currently contain 11 transportation infrastructure projects. The estimated total cost of this infrastructure is comprised of: (a) actual construction costs to date, (b) debenture interest associated with financing, and (c) estimate cost of work yet to be completed. Total cost is ~$50.6 million (~$56.3 in 2019) as outlined in the table below. Actual costs, debenture interest (if any), and cost estimates were provided by Town staff and engineering advisors. It is important to note that these costs represent "gross" costs, of which only a portion will go to support new development during the 25-year review period. The remainder of this section outlines how total costs are equitably apportioned to new development/growth. Summary of Transportation Offsite Infrastructure Item Project Description Cost of Completed Work Debenture Interest Estimated Cost of Work Yet to be Completed Total Project Estimated Cost 1 NIR Program - 94th & 95th Ave $ - $ - $ 1,153,200 $ 1,153,200 2 Pavement Overlay Projects - 42,000 1,848,500 1,890,500 3 Sidewalk Replacement Projects - - 1,025,300 1,025,300 4 Operations Heavy Equipment - 72,000 2,117,000 2,189,000 5 8" Trash Pump (2021) - - 195,000 195,000 6 Sand and Salt Shed (2021) - 102,000 1,394,700 1,496,700 7 NIR Program - 2023 to 2025 - - 1,600,000 1,600,000 8 NIR Program - - 14,350,000 14,350,000 9 Pavement Overlay Projects - 435,600 12,100,000 12,535,600 10 Sidewalk Replacement Projects - 193,500 5,375,000 5,568,500 11 Heavy Equipment - 476,000 8,100,000 8,586,000 Total $ - $ 1,321,100 $ 49,258,700 $ 50,589,800 3.2 Transportation Offsite Infrastructure Grants & Contributions to Date The MGA enables the Town to recoup costs for infrastructure, other than those costs that have been provided by way of special grant or contribution (i.e., contributed infrastructure). Town of Peace River has not received any special grants or contributions for transportation offsite infrastructure as shown in the table below (note, if the Town receives other grants 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 reduced to ~$48.0 million (~$56.3 million in 2019.) Town of Peace River Offsite Levy Rate Update pg. 11 May 14, 2021 Special Grants and Contributions for Transportation Offsite Infrastructure Item Project Description Total Project Estimated Cost Grants or Other Contributions Reduced Project Estimated Cost 1 NIR Program - 94th & 95th Ave $ 1,153,200 $ - $ 1,153,200 2 Pavement Overlay Projects 1,890,500 113,000 1,777,500 3 Sidewalk Replacement Projects 1,025,300 100,000 925,300 4 Operations Heavy Equipment 2,189,000 - 2,189,000 5 8" Trash Pump (2021) 195,000 - 195,000 6 Sand and Salt Shed (2021) 1,496,700 600,000 896,700 7 NIR Program - 2023 to 2025 1,600,000 - 1,600,000 8 NIR Program 14,350,000 - 14,350,000 9 Pavement Overlay Projects 12,535,600 1,210,000 11,325,600 10 Sidewalk Replacement Projects 5,568,500 537,500 5,031,000 11 Heavy Equipment 8,586,000 - 8,586,000 Total $ 50,589,800 $ 2,560,500 $ 48,029,300 3.3 Transportation Offsite Infrastructure Benefiting Parties The transportation offsite infrastructure previously outlined will benefit various parties to varying degrees. There are three potential benefiting parties: - Town of Peace River - a portion of the transportation infrastructure which is required to service existing development. - Other Stakeholders - other parties (such as neighboring municipalities) that benefit from infrastructure. - Town of Peace River Developers - all growth related infrastructure (i.e., levyable transportation infrastructure costs). The table below outlines the allocation of transportation offsite infrastructure costs to benefiting parties. Percentage allocations have been determined after reducing transportation offsite infrastructure costs for grants and contribution described earlier. Most infrastructure supports new development. Allocation of Transportation Infrastructure to Benefiting Parties Item Project Description Reduced Project Estimated Cost Town Share % (Existing Development) Other Stakeholder & Oversizing Share % OSL / New Development Share % 1 NIR Program - 94th & 95th Ave $ 1,153,200 95.0% 4.0% 1.0% 2 Pavement Overlay Projects 1,777,500 98.0% 2.0% 3 Sidewalk Replacement Projects 925,300 95.0% 5.0% 4 Operations Heavy Equipment 2,189,000 98.0% 2.0% 5 8" Trash Pump (2021) 195,000 96.0% 4.0% 6 Sand and Salt Shed (2021) 896,700 95.0% 5.0% 7 NIR Program - 2023 to 2025 1,600,000 95.0% 4.0% 1.0% 8 NIR Program 14,350,000 95.0% 3.0% 2.0% 9 Pavement Overlay Projects 11,325,600 86.7% 6.0% 7.3% 10 Sidewalk Replacement Projects 5,031,000 86.7% 6.0% 7.3% 11 Heavy Equipment 8,586,000 92.0% 8.0% Total $ 48,029,300 Town of Peace River Offsite Levy Rate Update pg. 12 May 14, 2021 3.4 Existing Receipts Prior to allocating costs to benefiting areas, existing offsite levy receipts collected from developers need to be considered in determining the residual/net costs to developers. The opening balance of the offsite levy reserve at Dec 31st, 2019 is $148,998. These funds will be used for the funding of future projects. Allocation of Developer Receipts to Various Offsite Infrastructure Infrastructure/Reserve Type Receipts Collected to Date to Apply to Projects Transportation $ 148,998 Water 651,535 Sewer 196,104 Total $ 996,657 Offsite Levy Funds Collected and Applied Item Project Description OSL / New Development Cost (Leviable Costs) Offsite Levy Funds Collected to Present Adjusted Developer (Levy) Cost 1 NIR Program - 94th & 95th Ave $ 11,532 $ - $ 11,532 2 Pavement Overlay Projects 35,550 15,000 20,550 3 Sidewalk Replacement Projects 46,265 20,000 26,265 4 Operations Heavy Equipment 43,780 - 43,780 5 8" Trash Pump (2021) 7,800 - 7,800 6 Sand and Salt Shed (2021) 44,835 - 44,835 7 NIR Program - 2023 to 2025 16,000 - 16,000 8 NIR Program 287,000 - 287,000 9 Pavement Overlay Projects 826,769 75,000 751,769 10 Sidewalk Replacement Projects 367,263 35,000 332,263 11 Heavy Equipment 686,880 - 686,880 Total $ 2,373,674 $ 145,000 $ 2,228,674 Town of Peace River Offsite Levy Rate Update pg. 13 May 14, 2021 3.5 Transportation Infrastructure Benefiting Areas Net developer costs for each project have been allocated to multiple benefiting offsite levy areas (see table below). Allocations are denoted with a "1" below applicable areas. Benefiting areas were determined by Town engineering staff and advisors. Transportation infrastructure is treated as part of a single transportation "system" and, therefore, allocated to each area. Item Project Description Developer Cost 1.1 1.2 2.1 3.1 3.2 4.1 4.2 5.1 5.2 6.1 6.2 7.1 7.2 8.1 8.2 9.1 10.1 10.2 11.1 12.1 13.1 14.1 14.2 15.1 15.2 16.1 16.2 17.1 18.1 19.1 20.1 21.1 22.1 23.1 24.1 1 NIR Program - 94th & 95th Ave $ 11,532 2 Pavement Overlay Projects 20,550 1 1 1 3 Sidewalk Replacement Projects 26,265 1 1 1 1 1 1 1 4 Operations Heavy Equipment 43,780 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 8" Trash Pump (2021) 7,800 1 1 1 6 Sand and Salt Shed (2021) 44,835 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 NIR Program - 2023 to 2025 16,000 8 NIR Program 287,000 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 Pavement Overlay Projects 751,769 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 10 Sidewalk Replacement Projects 332,263 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 Heavy Equipment 686,880 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Total $ 2,228,674 Item Project Description Developer Cost 25.1 26.1 26.2 27.1 28.1 29.1 30.1 31.1 32.1 33.1 34.1 35.1 36.1 37.1 38.1 39.1 39.2 40.1 41.1 42.1 43.1 44.1 44.2 45.1 45.2 45.3 46.1 46.2 47.1 47.2 48.1 49.1 50.0 51.0 52.0 1 NIR Program - 94th & 95th Ave $ 11,532 1 1 1 2 Pavement Overlay Projects 20,550 1 1 1 1 1 1 1 1 1 1 1 3 Sidewalk Replacement Projects 26,265 1 1 1 1 1 1 1 1 1 1 4 Operations Heavy Equipment 43,780 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 8" Trash Pump (2021) 7,800 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 6 Sand and Salt Shed (2021) 44,835 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 NIR Program - 2023 to 2025 16,000 1 8 NIR Program 287,000 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 Pavement Overlay Projects 751,769 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 10 Sidewalk Replacement Projects 332,263 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 Heavy Equipment 686,880 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 12 Total $ 2,228,674 Town of Peace River Offsite Levy Rate Update pg. 14 May 14, 2021 3.6 Development and Transportation Staging Impacts Transportation 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 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 is repaid over time as offsite levies are collected from future development. In order to compensate parties for capital they provide in front-ending offsite infrastructure construction, a 2.96% interest allowance has been charged to the reserve when in a negative balance, unchanged from the previous model. Further, a 0.95% interest credit has been provided to reduce offsite levy rates for interest earned on positive reserve balances. Interest earning and charge rates should be updated each year to reflect the current economic context. The graph and table below outline transportation levy reserve balances over the 25-year development period. $(300,000) $(200,000) $(100,000) $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2021 2024 2027 2030 2033 2036 2039 2042 2045 $ Year Transportation Reserve Reserve Balance Town of Peace River Offsite Levy Rate Update pg. 15 May 14, 2021 4 WATER 4.1 Water Offsite Infrastructure In order to support growth in the Town, water offsite infrastructure is required. Capital plans currently contain 17 water offsite infrastructure projects. The estimated total cost of this infrastructure is comprised of: (a) actual construction costs to date, (b) debenture interest associated with financing, and (c) estimate cost of work yet to be completed. Total cost is ~ $50.1 million (~$54.4 million in 2019) as outlined in the table below. Actual costs, debenture interest (if any), and cost estimates were provided by Town staff and engineering advisors. It is important to note that these costs represent "gross" costs, of which only a portion will go to support new development during the 25-year review period. The remainder of this section outlines how total costs are equitably apportioned to new development/growth. Summary of Water Offsite Infrastructure Item Project Description Cost of Completed Work Debenture Interest Estimated Cost of Work Yet to be Completed Total Project Estimated Cost 1 NIR Program - 94th and 95th Ave $ - $ - $ 1,153,200 $ 1,153,200 2 WTP Equipment and System Upgrades - - 305,500 305,500 3 Meter Read Software - - 50,000 50,000 4 Water Line Replacements - 9,600 200,000 209,600 5 Shaftesbury Water Main - Pt 1 (2021) - 28,104 750,000 778,104 6 Shaftesbury Water Main - Pt 2 (2021) - 28,104 750,000 778,104 7 NIR Program - 2023 to 2025 - - 1,600,000 1,600,000 8 NIR Program - - 14,350,000 14,350,000 9 WTP Upgrades - 217,800 2,750,000 2,967,800 10 Reservoir Upgrade - Reservoir 353 - 633,600 8,000,000 8,633,600 11 Transmission Upgrades - 316,800 4,000,000 4,316,800 12 Distribution Upgrades (other than NIR) - 198,926 2,511,686 2,710,612 13 Booster Station and PRV Upgrades - 63,360 800,000 863,360 14 Heavy Equipment - 31,680 400,000 431,680 15 Water Line Twinning on New Bridge - - 1,500,000 1,500,000 16 SCADA System - 63,360 800,000 863,360 17 Reservoir Upgrade - Reservoir 400 - 633,600 8,000,000 8,633,600 Total $ - $ 2,224,934 $ 47,920,386 $ 50,145,320 4.2 Water Offsite Infrastructure Grants & Contributions to Date The MGA enables the Town to recoup costs for infrastructure, other than those costs that have been provided by way of special grant or contribution (i.e., contributed infrastructure). Town of Peace River has or is expected to received special grants of ~$6.0 million for water offsite infrastructure as shown in the table below (note, if the Town receives other grants 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 reduced to ~$44.1 million (~$42.4 million in 2019.) Town of Peace River Offsite Levy Rate Update pg. 16 May 14, 2021 Special Grants and Contributions for Water Offsite Infrastructure Item Project Description Total Project Estimated Cost Grants or Other Contributions Reduced Project Estimated Cost 1 NIR Program - 94th and 95th Ave $ 1,153,200 $ - $ 1,153,200 2 WTP Equipment and System Upgrades 305,500 - 305,500 3 Meter Read Software 50,000 - 50,000 4 Water Line Replacements 209,600 - 209,600 5 Shaftesbury Water Main - Pt 1 (2021) 778,104 468,200 309,904 6 Shaftesbury Water Main - Pt 2 (2021) 778,104 468,200 309,904 7 NIR Program - 2023 to 2025 1,600,000 - 1,600,000 8 NIR Program 14,350,000 - 14,350,000 9 WTP Upgrades 2,967,800 - 2,967,800 10 Reservoir Upgrade - Reservoir 353 8,633,600 2,000,000 6,633,600 11 Transmission Upgrades 4,316,800 600,000 3,716,800 12 Distribution Upgrades (other than NIR) 2,710,612 502,337 2,208,274 13 Booster Station and PRV Upgrades 863,360 - 863,360 14 Heavy Equipment 431,680 - 431,680 15 Water Line Twinning on New Bridge 1,500,000 - 1,500,000 16 SCADA System 863,360 - 863,360 17 Reservoir Upgrade - Reservoir 400 8,633,600 2,000,000 6,633,600 Total $ 50,145,320 $ 6,038,737 $ 44,106,582 4.3 Water Offsite Infrastructure Benefiting Parties The water offsite infrastructure previously outlined will benefit various parties to varying degrees. There are three potential benefiting parties: - Town of Peace River - a portion of the water infrastructure which is required to service existing development. - Other Stakeholders (or oversizing) - other parties (such as neighboring municipalities and regional water requirements. - Town of Peace River Developers - all growth related infrastructure (i.e., levyable water infrastructure costs). Town of Peace River Offsite Levy Rate Update pg. 17 May 14, 2021 The table below outlines the allocation of water offsite infrastructure costs to benefiting parties. Percentage allocations have been determined after reducing water offsite infrastructure costs for grants and contribution described earlier. Allocation of Water Infrastructure to Benefiting Parties Item Project Description Reduced Project Estimated Cost Town Share % (Existing Development) Other Stakeholder & Oversizing Share % OSL / New Development Share % 1 NIR Program - 94th and 95th Ave $ 1,153,200 95.0% 4.0% 1.0% 2 WTP Equipment and System Upgrades 305,500 86.7% 5.0% 8.3% 3 Meter Read Software 50,000 98.0% 2.0% 4 Water Line Replacements 209,600 95.0% 4.0% 1.0% 5 Shaftesbury Water Main - Pt 1 (2021) 309,904 86.7% 5.0% 8.3% 6 Shaftesbury Water Main - Pt 2 (2021) 309,904 86.7% 5.0% 8.3% 7 NIR Program - 2023 to 2025 1,600,000 95.0% 4.0% 1.0% 8 NIR Program 14,350,000 95.0% 4.0% 1.0% 9 WTP Upgrades 2,967,800 86.7% 5.0% 8.3% 10 Reservoir Upgrade - Reservoir 353 6,633,600 87.5% 10.0% 2.5% 11 Transmission Upgrades 3,716,800 86.7% 5.0% 8.3% 12 Distribution Upgrades (other than NIR) 2,208,274 86.7% 5.0% 8.3% 13 Booster Station and PRV Upgrades 863,360 86.7% 5.0% 8.3% 14 Heavy Equipment 431,680 90.0% 10.0% 15 Water Line Twinning on New Bridge 1,500,000 95.0% 3.0% 2.0% 16 SCADA System 863,360 95.0% 5.0% 17 Reservoir Upgrade - Reservoir 400 6,633,600 87.5% 10.0% 2.5% Total $ 44,106,582 4.4 Existing Receipts Prior to allocating costs to benefiting areas, existing offsite levy receipts collected from developers need to be considered in determining the residual/net costs to developers. The opening balance of the offsite levy reserve at Dec 31st, 2019 is $651,535. These funds will be used for the funding of future projects. Allocation of Developer Receipts to Various Offsite Infrastructure Infrastructure/Reserve Type Receipts Collected to Date to Apply to Projects Transportation $ 148,998 Water 651,535 Sewer 196,104 Total $ 996,657 Town of Peace River Offsite Levy Rate Update pg. 18 May 14, 2021 Offsite Levy Funds Collected and Applied Item Project Description OSL / New Development Cost (Leviable Costs) Offsite Levy Funds Collected to Present Adjusted Developer (Levy) Cost 1 NIR Program - 94th and 95th Ave $11,532 $ - $ 11,532 2 WTP Equipment and System Upgrades $25,357 - 25,357 3 Meter Read Software $1,000 - 1,000 4 Water Line Replacements $2,096 1,000 1,096 5 Shaftesbury Water Main - Pt 1 (2021) $25,722 - 25,722 6 Shaftesbury Water Main - Pt 2 (2021) $25,722 - 25,722 7 NIR Program - 2023 to 2025 $16,000 - 16,000 8 NIR Program $143,500 - 143,500 9 WTP Upgrades $246,327 75,000 171,327 10 Reservoir Upgrade - Reservoir 353 $165,840 50,000 115,840 11 Transmission Upgrades $308,494 75,000 233,494 12 Distribution Upgrades (other than NIR) $183,287 50,000 133,287 13 Booster Station and PRV Upgrades $71,659 10,000 61,659 14 Heavy Equipment $43,168 - 43,168 15 Water Line Twinning on New Bridge $30,000 - 30,000 16 SCADA System $43,168 - 43,168 17 Reservoir Upgrade - Reservoir 400 $165,840 50,000 115,840 $1,508,712 $ 311,000 $ 1,197,172 Town of Peace River Offsite Levy Rate Update pg. 19 May 14, 2021 4.5 Water Infrastructure Benefiting Areas Net developer costs for each project have been allocated to multiple benefiting offsite levy areas (see table below). Allocations are denoted with a "1" below applicable areas. Benefiting areas were determined by Town engineering staff and advisors. Water infrastructure is treated as part of a single water "system" and, therefore, allocated to each area. Benefiting Areas for Water Offsite Infrastructure Item Project Description Developer Cost 1.1 1.2 2.1 3.1 3.2 4.1 4.2 5.1 5.2 6.1 6.2 7.1 7.2 8.1 8.2 9.1 10.1 10.2 11.1 12.1 13.1 14.1 14.2 15.1 15.2 16.1 16.2 17.1 18.1 19.1 20.1 21.1 22.1 23.1 24.1 1 NIR Program - 94th and 95th Ave $ 11,532 2 WTP Equipment and System Upgrades 25,357 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 Meter Read Software 1,000 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 Water Line Replacements 1,096 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 Shaftesbury Water Main - Pt 1 (2021) 25,722 1 1 1 1 1 1 1 6 Shaftesbury Water Main - Pt 2 (2021) 25,722 1 1 1 1 1 1 1 7 NIR Program - 2023 to 2025 16,000 8 NIR Program 143,500 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 WTP Upgrades 171,327 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 10 Reservoir Upgrade - Reservoir 353 115,840 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 Transmission Upgrades 233,494 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 12 Distribution Upgrades (other than NIR) 133,287 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 13 Booster Station and PRV Upgrades 61,659 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 14 Heavy Equipment 43,168 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 15 Water Line Twinning on New Bridge 30,000 16 SCADA System 43,168 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 17 Reservoir Upgrade - Reservoir 400 115,840 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Total $ 1,197,172 Item Project Description Developer Cost 25.1 26.1 26.2 27.1 28.1 29.1 30.1 31.1 32.1 33.1 34.1 35.1 36.1 37.1 38.1 39.1 39.2 40.1 41.1 42.1 43.1 44.1 44.2 45.1 45.2 45.3 46.1 46.2 47.1 47.2 48.1 49.1 50.0 51.0 52.0 1 NIR Program - 94th and 95th Ave $ 11,532 1 1 1 1 1 1 1 1 1 1 2 WTP Equipment and System Upgrades 25,357 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 Meter Read Software 1,000 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 Water Line Replacements 1,096 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 Shaftesbury Water Main - Pt 1 (2021) 25,722 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 6 Shaftesbury Water Main - Pt 2 (2021) 25,722 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 NIR Program - 2023 to 2025 16,000 1 1 1 1 1 1 1 1 1 1 8 NIR Program 143,500 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 WTP Upgrades 171,327 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 10 Reservoir Upgrade - Reservoir 353 115,840 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 Transmission Upgrades 233,494 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 12 Distribution Upgrades (other than NIR) 133,287 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 13 Booster Station and PRV Upgrades 61,659 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 14 Heavy Equipment 43,168 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 15 Water Line Twinning on New Bridge 30,000 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 16 SCADA System 43,168 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 17 Reservoir Upgrade - Reservoir 400 115,840 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Total $ 1,197,172 Town of Peace River Offsite Levy Rate Update pg. 20 May 14, 2021 4.6 Development and Water Staging Impacts Water 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 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 is repaid over time as offsite levies are collected from future development. In order to compensate parties for capital they provide in front-ending offsite infrastructure construction, a 2.96% interest allowance has been charged to the reserve when in a negative balance, unchanged from the previous model. Further, a 0.95% interest credit has been provided to reduce offsite levy rates for interest earned on positive reserve balances. Interest earning and charge rates should be updated each year to reflect the current economic context. The graph and table below outline transportation levy reserve balances over the 25-year development period. Anticipated Water Offsite Levy Reserve Balances $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 $ Year Water Reserve Reserve Balance ✓ T-\. / ' - - I-+- ...... . ~ '\. . --......... Town of Peace River Offsite Levy Rate Update pg. 21 May 14, 2021 5 SEWER 5.1 Sanitary Offsite Infrastructure In order to support growth in the Town, sanitary offsite infrastructure is required. Capital plans currently contain 18 sanitary offsite infrastructure projects. The estimated total cost of this infrastructure is comprised: (a) actual construction costs to date, (b) debenture interest associated with financing, and (c) estimate cost of work yet to be completed. Total cost is approximately ~$42.5 million (~$50.9 million in 2019) as outlined in the table below. Actual costs, debenture interest (if any), and cost estimates were provided by Town staff and engineering advisors. It is important to note that these costs represent "gross" costs, of which only a portion will go to support new development during the 25-year review period. The remainder of this section outlines how total costs are equitably apportioned to new development/growth. Summary of Sanitary Offsite Infrastructure Item Project Description Cost of Completed Work Debenture Interest Estimated Cost of Work Yet to be Completed Total Project Estimated Cost 1 NIR Program (2021 - 2022) $ - $ - $ 1,153,200 $ 1,153,200 2 Shaftesbury Sewer Main - Pt 1 (2021) - 31,896 851,875 883,771 3 Shaftesbury Sewer Main - Pt 2 (2021) - 31,896 851,875 883,771 4 Biosolids Dewater - - 664,100 664,100 5 Lift Station 4 - - 1,922,300 1,922,300 6 Lift Station 7 - - 1,281,500 1,281,500 7 Sewer Line Replacements - - 650,000 650,000 8 Sewer Treatment Plant Upgrades - - 2,010,000 2,010,000 9 NIR Program (2023 - 2025) - - 1,600,000 1,600,000 10 Secondary Clarifier Upgrade - 324,000 1,800,000 2,124,000 11 NIR Program - - 14,350,000 14,350,000 12 2nd Aeration Tank Train - 237,600 3,000,000 3,237,600 13 WWTP Upgrades - 186,120 2,350,000 2,536,120 14 Lift Station Upgrades - 316,800 4,000,000 4,316,800 15 Collection System Upgrades - 237,600 3,000,000 3,237,600 16 Sewer Line Twinning on New Bridge - 118,800 1,500,000 1,618,800 Total $ - $ 1,484,712 $ 40,984,850 $ 42,469,562 5.2 Sanitary Offsite Infrastructure Grants & Contributions to Date The MGA enables the Town to recoup costs for infrastructure, other than those costs that have been provided by way of special grant or contribution (i.e., contributed infrastructure). Town of Peace River has not received any special grants or contributions for sanitary offsite infrastructure as shown in the table below (note, if the Town receives grants 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 reduced to ~$37.4 million (~$40.2 million in 2019.) Town of Peace River Offsite Levy Rate Update pg. 22 May 14, 2021 Special Grants and Contributions for Sanitary Offsite Infrastructure Item Project Description Total Project Estimated Cost Grants or Other Contributions Reduced Project Estimated Cost 1 NIR Program (2021 - 2022) $ 1,153,200 $ - $ 1,153,200 2 Shaftesbury Sewer Main - Pt 1 (2021) 883,771 531,800 351,971 3 Shaftesbury Sewer Main - Pt 2 (2021) 883,771 531,800 351,971 4 Biosolids Dewater 664,100 - 664,100 5 Lift Station 4 1,922,300 - 1,922,300 6 Lift Station 7 1,281,500 - 1,281,500 7 Sewer Line Replacements 650,000 - 650,000 8 Sewer Treatment Plant Upgrades 2,010,000 - 2,010,000 9 NIR Program (2023 - 2025) 1,600,000 - 1,600,000 10 Secondary Clarifier Upgrade 2,124,000 531,000 1,593,000 11 NIR Program 14,350,000 - 14,350,000 12 2nd Aeration Tank Train 3,237,600 750,000 2,487,600 13 WWTP Upgrades 2,536,120 587,500 1,948,620 14 Lift Station Upgrades 4,316,800 1,000,000 3,316,800 15 Collection System Upgrades 3,237,600 750,000 2,487,600 16 Sewer Line Twinning on New Bridge 1,618,800 375,000 1,243,800 Total $ 42,469,562 $ 5,057,100 $ 37,412,462 5.3 Sanitary Offsite Infrastructure Benefiting Parties The sanitary offsite infrastructure previously outlined will benefit various parties to varying degrees. There are three potential benefiting parties: - Town of Peace River - a portion of the sanitary infrastructure which is required to service existing development. - Other Stakeholders (or oversizing) - other parties (such as neighboring municipalities) that benefit from infrastructure. - Town of Peace River Developers - all growth related infrastructure (i.e., levyable sanitary infrastructure costs). Town of Peace River Offsite Levy Rate Update pg. 23 May 14, 2021 The table below outlines the allocation of sanitary offsite infrastructure costs to benefiting parties. Percentage allocations have been determined after reducing sanitary offsite infrastructure costs for grants described earlier. Most infrastructure supports new development. Allocation of Sanitary Infrastructure to Benefiting Parties Item Project Description Reduced Project Estimated Cost Town Share % (Existing Development) Other Stakeholder & Oversizing Share % OSL / New Development Share % 1 NIR Program (2021 - 2022) $ 1,153,200 95.0% 4.0% 1.0% 2 Shaftesbury Sewer Main - Pt 1 (2021) 351,971 86.7% 5.0% 8.3% 3 Shaftesbury Sewer Main - Pt 2 (2021) 351,971 86.7% 5.0% 8.3% 4 Biosolids Dewater 664,100 98.0% 2.0% 5 Lift Station 4 1,922,300 86.7% 5.0% 8.3% 6 Lift Station 7 1,281,500 86.7% 5.0% 8.3% 7 Sewer Line Replacements 650,000 86.7% 5.0% 8.3% 8 Sewer Treatment Plant Upgrades 2,010,000 86.7% 5.0% 8.3% 9 NIR Program (2023 - 2025) 1,600,000 95.0% 4.0% 1.0% 10 Secondary Clarifier Upgrade 1,593,000 98.0% 2.0% 11 NIR Program 14,350,000 95.0% 4.0% 1.0% 12 2nd Aeration Tank Train 2,487,600 86.7% 5.0% 8.3% 13 WWTP Upgrades 1,948,620 86.7% 5.0% 8.3% 14 Lift Station Upgrades 3,316,800 86.7% 5.0% 8.3% 15 Collection System Upgrades 2,487,600 86.7% 5.0% 8.3% 16 Sewer Line Twinning on New Bridge 1,243,800 86.7% 5.0% 8.3% Total $ 37,412,462 5.4 Existing Receipts Prior to allocating costs to benefiting areas, existing offsite levy receipts collected from developers need to be considered in determining the residual/net costs to developers. The opening balance of the offsite levy reserve at Dec 31st, 2019 is $196,104. These funds will be used for the funding of future projects. Allocation of Developer Receipts to Various Offsite Infrastructure Infrastructure/Reserve Type Receipts Collected to Date to Apply to Projects Transportation $ 148,998 Water 651,535 Sewer 196,104 Total $ 996,657 Town of Peace River Offsite Levy Rate Update pg. 24 May 14, 2021 Offsite Levy Funds Collected and Applied Item Project Description OSL / New Development Cost (Leviable Costs) Offsite Levy Funds Collected to Present Adjusted Developer (Levy) Cost 1 NIR Program (2021 - 2022) $ 11,532 $ - $ 11,532 2 Shaftesbury Sewer Main - Pt 1 (2021) 29,214 - 29,214 3 Shaftesbury Sewer Main - Pt 2 (2021) 29,214 - 29,214 4 Biosolids Dewater 13,282 - 13,282 5 Lift Station 4 159,551 50,000 109,551 6 Lift Station 7 106,365 90,000 16,365 7 Sewer Line Replacements 53,950 50,000 3,950 8 Sewer Treatment Plant Upgrades 166,830 - 166,830 9 NIR Program (2023 - 2025) 16,000 - 16,000 10 Secondary Clarifier Upgrade 31,860 - 31,860 11 NIR Program 143,500 - 143,500 12 2nd Aeration Tank Train 206,471 - 206,471 13 WWTP Upgrades 161,735 6,104 155,631 14 Lift Station Upgrades 275,294 - 275,294 15 Collection System Upgrades 206,471 - 206,471 16 Sewer Line Twinning on New Bridge 103,235 - 103,235 Total $ 1,714,503 $ 196,104 $ 1,518,399 Town of Peace River Offsite Levy Rate Update pg. 25 May 14, 2021 5.5 Sanitary Infrastructure Benefiting Areas Net developer costs for each project have been allocated to multiple benefiting offsite levy areas (see tables below). Allocations are denoted with a "1" below applicable areas. Benefiting areas were determined by Town engineering staff and advisors. Sanitary infrastructure has been allocated to several benefiting land "basins". Benefiting Areas for Sanitary Offsite Infrastructure Item Project Description Developer Cost 1.1 1.2 2.1 3.1 3.2 4.1 4.2 5.1 5.2 6.1 6.2 7.1 7.2 8.1 8.2 9.1 10.1 10.2 11.1 12.1 13.1 14.1 14.2 15.1 15.2 16.1 16.2 17.1 18.1 19.1 20.1 21.1 22.1 23.1 24.1 1 NIR Program (2021 - 2022) $ 11,532 2 Shaftesbury Sewer Main - Pt 1 (2021) 29,214 1 1 1 1 1 1 1 3 Shaftesbury Sewer Main - Pt 2 (2021) 29,214 1 1 1 1 1 1 1 4 Biosolids Dewater 13,282 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 Lift Station 4 109,551 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 6 Lift Station 7 16,365 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 Sewer Line Replacements 3,950 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 8 Sewer Treatment Plant Upgrades 166,830 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 NIR Program (2023 - 2025) 16,000 10 Secondary Clarifier Upgrade 31,860 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 NIR Program 143,500 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 12 2nd Aeration Tank Train 206,471 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 13 WWTP Upgrades 155,631 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 14 Lift Station Upgrades 275,294 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 15 Collection System Upgrades 206,471 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 16 Sewer Line Twinning on New Bridge 103,235 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $ 1,518,399 Item Project Description Developer Cost 25.1 26.1 26.2 27.1 28.1 29.1 30.1 31.1 32.1 33.1 34.1 35.1 36.1 37.1 38.1 39.1 39.2 40.1 41.1 42.1 43.1 44.1 44.2 45.1 45.2 45.3 46.1 46.2 47.1 47.2 48.1 49.1 50.0 51.0 52.0 1 NIR Program (2021 - 2022) $ 11,532 1 1 1 1 1 1 1 1 1 1 2 Shaftesbury Sewer Main - Pt 1 (2021) 29,214 1 1 1 1 1 1 1 1 1 1 1 1 1 3 Shaftesbury Sewer Main - Pt 2 (2021) 29,214 1 1 1 1 1 1 1 1 1 1 1 1 1 4 Biosolids Dewater 13,282 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 5 Lift Station 4 109,551 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 6 Lift Station 7 16,365 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 7 Sewer Line Replacements 3,950 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 8 Sewer Treatment Plant Upgrades 166,830 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 NIR Program (2023 - 2025) 16,000 1 1 1 1 1 1 1 1 1 1 10 Secondary Clarifier Upgrade 31,860 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 NIR Program 143,500 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 12 2nd Aeration Tank Train 206,471 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 13 WWTP Upgrades 155,631 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 14 Lift Station Upgrades 275,294 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 15 Collection System Upgrades 206,471 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 16 Sewer Line Twinning on New Bridge 103,235 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $ 1,518,399 Town of Peace River Offsite Levy Rate Update pg. 26 May 14, 2021 5.6 Development and Sanitary 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 is repaid over time as offsite levies are collected from future development. In order to compensate parties for capital they provide in front-ending offsite infrastructure construction, a 2.96% interest allowance has been charged to the reserve when in a negative balance, unchanged from the previous model. Further, a 0.95% interest credit has been provided to reduce offsite levy rates for interest earned on positive reserve balances. Interest earning and charge rates should be updated each year to reflect the current economic context. The graph and table below outline transportation levy reserve balances over the 25-year development period. Anticipated Sanitary Offsite Levy Reserve Balances $(400,000) $(300,000) $(200,000) $(100,000) $- $100,000 $200,000 $300,000 2021 2024 2027 2030 2033 2036 2039 2042 2045 $ Year Sanitary Reserve Reserve Balance Town of Peace River Offsite Levy Rate Update pg. 27 May 14, 2021 6 SUMMARY OF INFRASTRUCTURE COSTS The total cost of all offsite transportation, water, and sanitary infrastructure in the Town of Peace River has decreased from ~$161.6 million to ~$146.1 million. Of the $146.1 million infrastructure cost, the Town's existing residents and other stakeholders benefit from and pay for ~$140.5 million or 96% (96% in 2019) of the cost, while developers (growth) benefit from and pay for ~$5.6 million or 4.0% (4% in 2019) of the cost. Since the last update, developer costs have decreased from $6.5 million to $5.6 million (a 14% decrease), primarily as a result of the changes in allocation methodology to capital projects over the 25 year horizon. Comparison to Developer Costs since Last Update Infrastructure CURRENT Total Costs Developer Costs Infrastructure PREVIOUS Total Costs Developer Costs Transportation $ 53,526,800 $ 2,373,674 Transportation $ 56,305,124 $ 2,031,309 Water 50,145,320 1,508,712 Water 54,397,622 2,250,566 Sewer 42,469,562 1,714,503 Sewer 50,904,833 2,252,341 Total $ 146,141,682 $ 5,596,889 Total $ 161,607,579 $ 6,534,217 Town of Peace River Offsite Levy Rate Update pg. 28 May 14, 2021 7 SUMMARY OF OFFSITE LEVY RATES The table below shows the combined offsite levy rates (per ha.) associated with construction of transportation, water, and sanitary offsite infrastructure for each offsite levy area. Rates vary from a low of $35,032 ($32,236 in 2019) per ha. to a high of $54,758 ($60,344 in 2019) per ha. The weighted average rate across all areas is $37,297 ($40,355 in 2019) per ha. (note, the weighted average rate is provided for information purposes only; developers are charged the rate applicable to their specific offsite levy area). Area Reference # Road Off Site Levy (per Ha) Water Off Site Levy (per Ha) Sewer Off Site Levy (per Ha) Total (per Ha) Area Reference # Road Off Site Levy (per Ha) Water Off Site Levy (per Ha) Sewer Off Site Levy (per Ha) Total (per Ha) 1 $ 16,209 $ 8,221 $ 10,932 $ 35,362 27 $ 16,674 $ 10,127 $ 13,095 $ 39,896 2 16,209 8,221 10,932 35,362 28 16,209 10,127 13,095 39,431 3 16,674 8,221 10,932 35,827 29 16,209 10,127 13,095 39,431 4 16,209 8,221 10,932 35,362 30 16,209 10,127 13,095 39,431 5 16,209 8,221 10,932 35,362 31 16,209 10,127 13,095 39,431 6 16,209 8,221 10,932 35,362 32 15,879 8,221 10,932 35,032 7 16,209 8,221 10,932 35,362 33 16,625 10,127 13,095 39,847 8 16,674 8,221 10,932 35,827 34 19,051 10,127 13,095 42,273 9 18,635 8,221 10,932 37,788 35 16,625 10,127 13,095 39,847 10 16,209 8,221 10,932 35,362 36 17,090 10,127 13,095 40,312 11 16,209 10,127 13,095 39,431 37 15,879 8,221 10,932 35,032 12 16,209 10,127 13,095 39,431 38 15,879 8,221 10,932 35,032 13 16,209 10,127 13,095 39,431 39 16,625 11,866 9,086 37,577 14 16,209 8,221 10,932 35,362 40 19,051 11,866 9,086 40,003 15 18,170 8,221 10,932 37,323 41 18,635 11,866 9,086 39,587 16 16,674 8,221 10,932 35,827 42 18,586 11,866 9,086 39,538 17 16,209 8,221 10,932 35,362 43 16,210 11,866 9,086 37,162 18 16,209 10,127 13,095 39,431 44 18,586 15,432 12,652 46,670 19 16,209 10,127 13,095 39,431 45 26,674 15,432 12,652 54,758 20 16,625 8,221 10,932 35,778 46 19,051 15,432 12,652 47,135 21 16,625 8,221 10,932 35,778 47 16,625 15,432 12,652 44,709 22 16,625 10,127 13,095 39,847 48 16,625 15,432 12,652 44,709 23 16,209 8,221 10,932 35,362 49 16,210 11,866 9,086 37,162 24 16,209 10,127 13,095 39,431 50 16,210 8,221 13,095 37,526 25 16,209 10,127 13,095 39,431 51 16,210 8,221 13,095 37,526 26 $ 16,209 $ 10,127 $ 13,095 $ 39,431 52 $ 16,625 $ 10,127 $ 13,095 $ 39,847 Each year the Town's rates fail to keep pace with inflation and other factors results in further rate decay, with taxpayers making up the ever-increasing financing gap. In the 2014 update, the Town adopted a phased in approach to rate changes, with full 100% rate recovery achieved by 2016. The table below shows the approved rates at the time against the rates provided for 2021. Year Rate Adjustment in Each Area Approximate Weighted Average Rate 2014 70% of Full Cost Rate $ 58,348 2015 85% of Full Cost Rate $ 70,852 2016 100% of Full Cost Rate $ 83,355 2019 100% of Full Cost Rate $ 40,886 2021 100% of Full Cost Rate $ 37,297