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BYLAW 2648/D&P/21
BEING A BYLAW OF THE TOWN OF STONY PLAIN, IN THE PROVINCE OF ALBERTA,
TO ESTABLISH OFF-SITE LEVIES FOR LAND THAT IS TO BE SUBDIVIDED OR
DEVELOPED WITHIN THE TOWN OF STONY PLAN
WHEREAS the Municipal Government Act authorizes Council to pass bylaws for the procedure and
conduct of Council, Council committees and other bodies established by Council, the conduct of
Councillors and the conduct of members of Council committees and other bodies established by Council
and generally for the transaction of its business;
(s.145 MGA 2000)
AND WHEREAS this Bylaw shall be subject to the provisions of the Municipal Government Act.
AND WHEREAS Council deems it necessary and expedient to collect Off-Site Levies to pay for the
capital cost of infrastructure required to service Growth of the Town;
AND WHEREAS the Town has engaged in consultation with landowners and representatives of the
development industry to address and define existing and future infrastructure required for Growth of the
Town and the allocation of the capital costs of such infrastructure;
AND WHEREAS Council has received the Report, which set out a fair and equitable calculation of Off-
Site Levies in accordance with the Municipal Government Act and the Off-Site Levy Regulation;
AND WHEREAS Council has advertised its intention to consider the enactment of this Bylaw pursuant to
the requirements of the Municipal Government Act;
NOW THEREFORE Council hereby establishes Off-Site Levies for land that is to be subdivided or
developed within the Town.
1.0.0
Name of Bylaw
1.1.0
This Bylaw may be cited as the "Off-Site Levy Bylaw".
2.0.0
Definitions
In this Bylaw:
2.1.0
"Bylaw" means this off-site levy bylaw;
2.2.0
"CAO" means the chief administrative office for the Town, regardless of the specific title that
may be conferred on that officer from time to time;
2.3.0
"Council" means the council for the Town;
2.4.0
"Developable Land" means all land contained within the Developm<;:nt Area:
2.4.1
upon which Development takes place after the date of enactment of this Bylaw; or
2.4.2
for which Subdivision approval is obtained after the date of enactment of this Bylaw;
excluding:
2.4.3
all Developed Land;
2.4.4
all land designated pursuant to a Subdivision as:
2.4.4.1 environmental reserve;
2.4.4.2 school reserve;
2.4.4.3 municipal reserve;
2.4.4.4 conservation reserve;
2.4.4.5 municipal school reserve;
2.4.4.6 arterial road right of way; or
BYLAW 2648/D&P/21
Page2
2.4.4.7 public utility lots;
2.4.5
any land owned by a school board that is to be developed for a school building project
within the meaning of the Education Act;
2.4.6
any land owned by a government or public utility provider and used to provide a public
service;
2.5.0
"Developed Land" means land that has been subject to Development or a Subdivision prior to the
date this Bylaw comes into force, and in respect of which off-site levies for the same
infrastructure have been paid;
2.6.0
"Development" means "development" as defined in the Municipal Government Act;
2.7.0
"Development Agreement" means "development agreement" as referred to in the Municipal
Government Act;
2.8.0
"Development Area" includes the area of land within the municipal boundaries of the Town
identified in Schedule "A" to this Bylaw;
2.9.0
"Development Permit" means "development permit" as defined in the Municipal Government
Act;
2.10.0 "Growth" means:
2.10.1 the creation of new Lots through Subdivision; and
2.10.2 the occurrence of Development;
2.11.0 "Lot" means "lot" as defined in the Municipal Government Act;
2.12.0 "Municipal Government Acf' means the Municipal Government Act, RSA 2000, c. M 26, as
amended or repealed and replaced from time to time;
2.13.0 "Off-Site Infrastructure" means those components and projects referred to in the Report, in
relation to water facilities, sanitary sewer facilities, roads and transportation infrastructure and
recreation facilities and infrastructure to be paid for in whole or in part by Off-Site Levies under
the Bylaw;
2.14.0 "Off-Site Levies" means the off-site levies imposed pursuant to this Bylaw;
2.15.0 "Off-Site Levy Regulation" means the Off-Site Levies Regulation, Alta. Reg. 187/2017, as
amended or repealed and replaced from time to time;
2.16.0 "Report" means the Town of Stony Plain: 2021 Offsite Levy Update, April 2, 2021, prepared by
Corvus Business Advisors, attached as Schedule "B" to this Bylaw;
2.17 .0 "Subdivision" means "subdivision" as defined in the Municipal Government Act;
2.18.0 "Town" means the Town of Stony Plain.
3.0.0
Object of Levy
3 .1.0
The object of the Off-Site Levies is to provide funds to pay for all or part of the capital costs of
the Off-Site Infrastructure required for Growth, as determined in the Report.
4.0.0
Imposition of Levy
4.1.0
The Off-Site Levies are hereby established and imposed in respect of all Developable Land on the
basis set out in the Report.
4.2.0
The amount of the Off-Site Levies imposed is as calculated in the Report.
4.3.0
The Off-Site Levies will be assessed on all Developable Land on a per hectare basis.
4.4.0
Unless otherwise agreed, payment of Off-Site Levies imposed under this Bylaw is due:
4.4.1
in the case of Subdivision, at or prior to plan endorsement; and
BYLAW 2648/D&P/21
Page3
4.4.2
in the case of Development, as a condition of the issuance of the Development Permit.
5.0.0
Authority of the CAO
5.1.0
The CAO is delegated the authority to enforce and administer this Bylaw, including, but not
limited to the authority to:
5.1.1
enter into Development Agreements on behalf of the Town with respect to, among other
things, the collection of Off-Site Levies;
5.1.2
defer or waive collection of Off-Site Levies imposed pursuant to this Bylaw; and
5 .1.3
require security for payment of any deferred levies.
5.2.0
The CAO may delegate the authority to enforce and administer this Bylaw.
6.0.0
Development Agreement
6.1.0
Council may, from time to time adopt policies or guidelines for the assistance and direction of the
CAO in determining which Development and Subdivision applications require a Development
Agreement.
6.2.0
Where it is determined that a Development Agreement is appropriate for any application for
Development or Subdivision, the developer or the landowner, as the case may be, shall enter into
a Development Agreement with the Town that provides for the payment of Off-Site Levies in
accordance with this Bylaw or that provides for the deferral of Off-Site Levies, including
requiring security for the payment of such deferred levies.
7.0.0
Annual Report
7.1.0
Within 90 days of the end of each calendar year, the CAO shall provide an annual report to
Council regarding the Off-Site Levies imposed under this Bylaw, including:
7 .1.1
Off-Site Infrastructure constructed during the previous calendar year;
7 .1.2
Construction costs of Off-Site Infrastructure constructed in the previous calendar year;
7.1.3
Estimated construction costs for Off-Site Infrastructure yet to be constructed and an
explanation as to any adjustments to the estimates since the previous annual report;
7 .1.4
Amount collected in Off-Site Levies during the previous calendar year and the amount of
Off-Site Levies due and payable, but uncollected, as of December 31 of the previous
calendar year; and
7.1.5
Specifics of total value of Off-Site Levies being held by the Town and yet to be expended
on Off-Site Infrastructure, interest earned and commitments for future expenditures of
such monies as of December 31 of the previous calendar year.
8.0.0
Accounting
8.1.0
All funds collected pursuant to this Bylaw:
8.1.1
Shall be accounted for in a special fund for each category of infrastructure; and
8.1 .2
Expended only as permitted under the Municipal Government Act.
9.0.0
Review
9 .1.0
The Town shall review the rates for Off-Site Levies annually and, if required, shall amend this
Bylaw accordingly to update the rates for Off-Site Levies.
10.0.0 General
10.1.0 Nothing in this Bylaw precludes the Town from:
10.1.1 imposing further or different levies, duly enacted by bylaw, on any po1tion of the
Developable Lands in respect of which the Town has not collected Off-Site Levies;
BYLAW 2648/D&P/21
Page4
10.1.2 deferring collection of Off-Site Levies on any portion of Developable Lands, including
requiring security for payment of such deferred levies; or
10.1.3 reducing or forgiving payment of the Off-Site Levies required pursuant to this Bylaw, or
otherwise providing for credits for other Off-Site Infrastructure or oversize infrastructure
constructed by a developer in calculating and/or collecting the Off-Site Levies that
become payable pursuant to this Bylaw.
10.2.0 Schedules "A" and "B" to this Bylaw, and specifically, without restricting the generality of the
foregoing, the rates for Off-Site Levies set out in the Report, may be updated or amended from
time to time by resolution of Council.
11.0.0 Effectiveness
11.1.0 If any portion of this Bylaw is declared invalid or void by any Court having competent
jurisdiction, then such invalid or void portion shall be severed from the Bylaw and the remainder
of the Bylaw shall be maintained and deemed valid.
11.2.0 This Bylaw applies to:
11.2.1 any Subdivision where the date of subdivision approval occurs on or after the date this
Bylaw comes into force; and
11.2.2 any Development where the date of issuance of a Development Permit occurs on or after
the date this Bylaw comes into force.
11.3.0 Development Agreements entered into prior to the enactment of this Bylaw shall remain valid and
in effect.
11.4.0 Any off-site levies and capital recreation contributions payable under Development Agreements
entered into prior to the enactment of this Bylaw, are confirmed and shall continue to be payable
notwithstanding the repeal of previous off-site levy bylaws and capital recreation contribution
policies pursuant to subsection 11.5 .0. As of the effective date of this Bylaw, the rates for Off-
Site Levies payable under existing Development Agreements shall be in accordance with this
Bylaw.
11.5.0 Town Bylaw No. 2594/D&P/18 (off-site levies), Council Capital Recreation Contribution Policy
No. 315/07 /07 /SP and all amendments thereto are hereby repealed.
12.0.0 Execution
12.1.0 This Bylaw shall take full force and effect upon passage of third and final reading in accordance
with Section 213 of the Municipal Government Act.
Read a first time this 10th day of May, AD 2021 .
r
<===b - --
Mayor William Choy
General Manager, Corporate Services
Public Hearing held on the 28th day of June, AD 2021.
Read a second time this 28tl' day of June, AD 2021.
Read a third time this this 28tl' day of June, AD.::.::::::::
:::2::~_2....;···_l.::~::-::· ~a
.. ·,d·e.::;s;;'""._.-,.=::=::::==~- -------
Mayor William Choy
i, CPA, CA
ral Manager, Corporate Services
BYLAW 2648/D&P/21
Pages
- ~-..or
t ~ (?NY
~IN
Lot Line
Estabhshed
Within 25 Years
-
Beyond 25 Years 0
1:1 Offsite Levy Area
SCHEDULE A
Map of Development Area
05
1 km
A.uthof: Town ol Stony Pbn
1n1!c 20:!1.0J..J1
Sourw~ "f<n<n ol Stony Pb:n
Af.3_1$ (2021)
BYLAW 2648/D&P/21
Page 6
SCHEDULEB
Town of Stony Plain: 2021 Offsite Levy Update, April 2, 2021
prepared by Corvus Business Advisors
This document has been prepared by CORVUS Business Advisors for the sole purpose and exclusive use of the
Town of Stony Plain.
Town of Stony Plain:
2021 Offsite Levy Update
April 2nd, 2021
Prepared by:
Greg Weiss, President
CORVUS Business Advisors
9670 - 95 Avenue
Edmonton, AB T6C 2A4
(780) 428-4110
[email protected]
www.corvusbusinessadvisors.com
| CORVUS Business Advisors Inc. |
| 9670 - 95 Avenue | Edmonton | Alberta | T6C 2A4 | 780-428-4110 |
April 2nd, 2021
Town of Stony Plain
4905 - 51 Avenue
Stony Plain, Alberta
T7Z 1Y1
RE: Town of Stony Plain 2021 Offsite Levy Update
Enclosed is our report in support of the Town of Stony Plain 2021 offsite levy rate update. If
you have any questions do not hesitate to contact me.
Sincerely,
Greg Weiss
President
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 1
CORVUS Business Advisors
1 DOCUMENT INFORMATION
Version
Number
Revision Date
Summary of Changes and Author
1.0
March 6th, 2021
DRAFT. Created by CORVUS Business Advisors.
2.0
March 15th, 2021
DRAFT. Created by CORVUS Business Advisors.
3.0
April 2nd, 2021
Final.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 2
CORVUS Business Advisors
2 CONTENTS
1
DOCUMENT INFORMATION .......................................................................................................... 1
2
CONTENTS...................................................................................................................................... 2
3
INTRODUCTION .............................................................................................................................. 3
3.1
INTRODUCTION ............................................................................................................................ 3
3.2
METHODOLOGY ........................................................................................................................... 3
4
KEY FINDINGS ................................................................................................................................ 4
5
RATE UPDATES ............................................................................................................................. 8
6
RECOMMENDATIONS .................................................................................................................... 9
7
ACKNOWLEDGEMENTS .............................................................................................................. 10
8
DISCLAIMER ................................................................................................................................. 10
APPENDIX A: OFFSITE LEVY AREAS AND LAND STAGING ......................................................... 11
APPENDIX B: TRANSPORTATION .................................................................................................... 15
APPENDIX C: WATER ........................................................................................................................ 25
APPENDIX D: SANITARY SEWER ..................................................................................................... 35
APPENDIX E: RECREATION .............................................................................................................. 45
APPENDIX F: OFFSITE INFRASTRUCTURE DEFINITIONS ............................................................ 52
APPENDIX G: COMPARISON OF RATES ......................................................................................... 54
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
3 INTRODUCTION
3.1
Introduction
Bylaw 2594/D&P/18, established by the Town of Stony Plain ("the Town") in 2018 defines
offsite levy charges for roads, water, and sanitary sewer offsite infrastructure. The Town
wishes to update this bylaw, amending offsite infrastructure included in the bylaw in
alignment with the Town's recent actual expenditures, receipts, latest capital/master plans,
and ensuring updated costs and development forecasts are reflected fairly and equitably in
new rates, thereby ensuring a financially sustainable community. The Town also wishes to
add recreation infrastructure to the bylaw in accordance with Section 648 of the Municipal
Government Act ("MGA").
This report outlines the methodology and information used in establishing updated
transportation, water, and sanitary sewer offsite levy rates, and new recreation offsite levy
rates for the Town.
3.2
Methodology
The Town has various infrastructure capital/master plans, and these plans have been used
by Town staff as a start point for developing key information for this offsite levy review. Town
staff reviewed existing plans and verified offsite projects for roads, water, sanitary sewer,
and recreation infrastructure1. The Town's review also included verification of benefits to
existing development, future development, and benefiting areas.
Support provided by CORVUS Business Advisors ("CORVUS") included:
Provision of the latest CORVUS offsite levy model.
Incorporation and configuration of data in the offsite levy model (data provided by
Town staff).
Incorporation of area measurements and land development forecasts (provided by
Town staff).
Incorporation of infrastructure costs and allocation percentages for existing
development, new development, and other parties (provided by Town staff).
Reconciliation of account opening balances (historical reconciliation details provided
by Town staff).
Determination of roads, water, sanitary sewer, and recreation levy rates.
Preparation of the offsite levy report.
Presentation of results to Administration and Council.
Training of Town staff on the use of the model.
1 It was not within CORVUS' scope of work to review capital/master plans. Plans were reviewed and refined by
Town staff.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
Development of an offsite levy policy framework to guide implementation of the
bylaw.
Training for staff on use of the model and provision of training materials and video.
Offsite levy rates within the CORVUS model are forecast using a rolling 25-year review
period. During this review, a cut-off date of December 31st, 2020 was established, and so
the review period stems from 2021 to 2045. The cut-off date coincides with the Town's most
recent year-end when the project started. Project expenditures, receipts etc. were gathered
as "actuals" from the Town's financial records up to the cut-off date. Beyond the cut-off date,
all financial details are estimates. When the Town completes its next rate update,
information from January 1st, 2021 up to the new cut-off date will be converted from
estimates to actuals, and the rolling 25-year review period will move further out.
Costs that benefit development prior to and within the 25-year review period are included in
rates. Costs that benefit development beyond the review period (called "financial
oversizing") are excluded from rates. In future years, when rates are updated and the rolling
25-year period moves further out, offsite infrastructure costs beyond 2045 will gradually be
included in rates.
4 KEY FINDINGS
The following provides a summary of key findings pertaining to the updating of the Town's
offsite levy rates:
Offsite Infrastructure Costs. Offsite infrastructure costs to be included in the offsite levy
bylaw total approximately $260.83 million. An overview of offsite infrastructure costs and
maps is provided in Appendices B1 (Transportation), C1 (Water), D1 (Sanitary Sewer), and
E1 (Recreation); and a definition of each offsite infrastructure type is provided in Appendix
F.
Before determining how the infrastructure costs will be allocated to parties that benefit (e.g.,
existing/residual development, future development, other municipalities etc.), financing
provided by way of special ear-marked grants and other contributions are deducted from
offsite infrastructure costs. For this review, the Town has identified approximately $55.64
million in ear-marked grants and contributions. An overview of ear-marked grants and
contributions and resulting net costs is provided in Appendices B2, C2, D2, and E2.
The share of costs which benefits existing/residual development (the Town's share) is
$33.50 million; and, the share of costs which benefits other stakeholders (e.g.,
neighbouring municipalities) is $0.71 million.
The share of costs which benefits future development totals approximately $170.97 million
($113.05 million + $57.92 million) and is based on the allocations shown in Appendices
B4, C4, D4, and E4. However, $113.05 million of the cost which benefits future
development is beyond the 25-year review period (called "financial oversizing"). Financial
oversizing is determined based on the anticipated year of construction (construction staging)
which is provided in Appendices B3, C3, D3, and E3.
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
Of the $170.97 million in total offsite infrastructure costs which benefits future development,
the portion that is within the 25-year review period and included in rates today (the offsite
levy share) is approximately $57.92 million, as shown in the table below. A complete
summary of offsite infrastructure net cost "flow-thru" is provided in Appendices B6, C6, D6,
and E6.
Summary of Infrastructure Costs & Allocations
Infrastructure
Special Grants
& Contributions
Muni Share of
Costs
Other
Stakeholders'
Share of Costs
Developer Cost
Beyond 25 Yrs
(Financial
Oversizing)
Developer
Costs
(In Rates)
Total Costs
Transportation
2,739,121
$
-
$
708,000
$
45,427,485
$
24,481,111
$
73,355,718
$
Water
2,882,980
$
-
$
-
$
51,969,260
$
7,351,506
$
62,203,746
$
Sanitary Sewer
3,139,646
$
3,740,351
$
-
$
15,651,636
$
9,726,908
$
32,258,541
$
Recreation
46,875,000
$
29,759,850
$
-
$
-
$
16,365,150
$
93,000,000
$
Total
55,636,747
$
33,500,201
$
708,000
$
113,048,381
$
57,924,675
$
260,818,005
$
Offsite Levy Collections. Before allocating infrastructure costs to benefitting lands, offsite
levy costs must be reduced by the total levies collected to date. Up to December 31st, 2020,
the Town collected approximately $16.73 million in offsite levies as summarized in the table
below. Details associated with levy collections are shown in Appendices B5, C5, D5, and
E5.
Summary of Levies Collected to Date
Transportation
9,206,516
$
Water
1,589,792
$
Sanitary Sewer
4,658,696
$
Recreation
729,465
$
Total
16,727,741
$
Levies Collected To Date
Offsite Levy Areas and Forecast Development. To facilitate the allocation of infrastructure
costs to those lands that benefit from the infrastructure, the Town is parsed into 12 offsite
levy areas. The area boundaries, numbering schema, and area measurements are
described in Appendix A along with an offsite levy map. An overview of offsite infrastructure
allocations to each benefitting area is provided in Appendices B7, C7, D7, and E7.
To calculate offsite levy rates, it is necessary to forecast the amount of land that will develop
during the 25-year review period. Land development forms the denominator of the rate
calculation. A larger denominator reduces rates but could potentially result in under-
collection thereby placing an increased burden on tax payers. A smaller denominator
increases rates but could potentially result in over-collection thereby placing an increased
burden on future development. Accordingly, land development forecasts need to be: (a)
reasonable and reflect current planning assumptions including the current pace of
development in the community, and (b) updated regularly.
For this review, the Town is forecasting development of approximately 415 ha. during the
25-year review period (the land development forecast is shown in Appendix A).
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
Offsite Levy Reserves. The Town is currently managing offsite levy receipts and
withdrawals via four accounts (i.e., one reserve/account for each infrastructure type), and
this in alignment with MGA requirements. The reason the MGA stipulates the requirement
for separate accounts is because offsite levies can only be used for the type of infrastructure
for which they were collected (e.g., water levies can only be used to construct water offsite
infrastructure, not sanitary sewer infrastructure etc.). During this review, several
amendments to historical information were identified. Accordingly, the Town's offsite levy
account balances require amendment as discussed further below and shown in Appendices
B8, C8, D8, and E8.
Interest. Offsite levy account balances (both actual and forecast) are impacted by interest.
Actual inflows and forecast balances that are in a positive/surplus position earn interest (as
required by the MGA). Actual outflows and forecast balances that are in a negative/deficit
position are charged interest (forecast balances that are negative indicate the requirement
for front-ending). During this review, several amendments to interest calculations were
identified. An overview of account adjustments is discussed further below, and interest rates
and forecast balances over the 25-year review period are shown in Appendices B9, C9, D9,
and E9.
Front-ending Approach. Front-ending is an extremely important concept that underpins
rigorous management of offsite levies. Front-ending represents monies owed by future
development to the front-ending party (municipality or developer) for past construction
undertaken on behalf of future development--i.e., a front-ending party will often pay for its
share of an offsite infrastructure project in addition to that portion of the project which
benefits future development when offsite levy account balances are insufficient.
There are 2 alternatives for repaying front-ending obligations to claimants: (1) the First-In
First-Out (FIFO) approach, and (2) the Average Outstanding Claim (AOC) approach.
When a FIFO approach is used, claims are reimbursed based on the order they are
incurred. For example, Developer A2 front-ends a $1 million piece of infrastructure in 2016.
Developer B front-ends a $0.5 million piece of infrastructure in 2017. And Developer C is
contemplating front-ending a $0.5 million piece of infrastructure in the future. Using the FIFO
approach, all offsite levy collections flow entirely to Developer A until it is fully repaid before
any levy collections flow to Developer B. As a result, in could take many years before
Developer B is fully repaid. Developer C, if it chooses to front-end in the future, would not
see any claim reimbursement until both Developer A and Developer B were repaid. This
model is good for earlier claimants as they will be reimbursed before future claimants.
However, use of this model acts as a disincentive for developers (like Developer C) to front-
end in the future (why front-end if there is no chance of reimbursement in a reasonable time-
frame?). As a result, the FIFO approach can create: (a) stagnation of development, and (b)
2 A municipality can also be a front-ending party (and claimant).
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
increased pressure on the municipality (i.e., taxpayers) to front-end. Accordingly, the FIFO
approach is not recommended.
When the AOC approach is used, claimants share distributions based on their proportionate
share of outstanding claims. For example, Developer A fronts a $1 million piece of
infrastructure in 2016. Developer B front-ends a $0.5 million piece of infrastructure in 2017.
And Developer C is contemplating front-ending a $0.5 million piece of infrastructure in the
future. Using the AOC approach, offsite levy collections are shared between Developer A
(66.6% of distributions) and Developer B (33.3% of distributions) until fully repaid3. If
Developer C chooses to front-end in the future, then future claim reimbursements would be
shared amongst Developer A (50% of distributions) and Developer B (25% of distributions)
and Developer C (25% of distributions) until repaid4. This approach is preferred, as it
ensures regular positive cash flow to all claimants, and therefore no disincentive to future
front-ending. As an adjunct to this project, an offsite levy policy framework is being
developed and it will include use of the AOC approach.
In Stony Plain, it is our understanding that the Town is the only party with front-ending
obligations/claims currently. As such, all excess cash in levy accounts should be used to
pay-down the front-ending obligations due to the Town (described below). Policies and
procedures pertaining to the coordination of front-ending will be defined in the Town's offsite
levy policy framework.
Offsite Levy Account Adjustments. At end 2020, Town documentation reflected a surplus
balance of $1,315,288 in the transportation account. However, after adjustments for front-
ending obligations due to the Town and claim repayments, the balance in the transportation
account should be amended to reflect a deficit of approximately $(3,491,326) at end 2020.
This balance assumes excess cash will be transferred from the levy account to the Town as
partial payment for front-ending obligations due to the Town. A complete reconciliation of the
transportation account balance is provided in Appendix B8.
At end 2020, Town documentation reflected a surplus balance of $1,530,664 in the water
account. However, after adjustments for front-ending obligations due to the Town and claim
repayments, the balance in the water account should be amended to reflect a surplus of
approximately $438,926 at end 2020. This balance assumes excess cash will be transferred
from the levy account to the Town as payment for front-ending obligations due to the Town.
A complete reconciliation of the water account balance is provided in Appendix C8.
At end 2020, Town documentation reflected a surplus balance of $1,021,390 in the sanitary
sewer account. This balance is in alignment with the offsite levy model at end 2020. A
complete reconciliation of the sanitary sewer account balance is provided in Appendix D8.
At end 2020, Town documentation reflected a surplus balance of $729,465 in the recreation
account. This balance is in alignment with the offsite levy model at end 2020. A complete
3 $1,000,000 / ($1,000,000 + $500,000) = 66.6%. $500,000 / ($1,000,000 + $500,000) = 33.3%.
4 $1,000,000 / ($1,000,000 + $500,000 + $500,000) = 50%. $500,000 / ($1,000,000 + $500,000 + $500,000) =
25%.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
reconciliation of the recreation account balance is provided in Appendix E8.
5 RATE UPDATES
For future development to pay for its share of the $260.82 million offsite infrastructure costs
contained in the Town's capital plans, rates are approximately $74,949 per net hectare on a
weighted average basis, as shown in the tables below. A comparison of rates to other
municipalities is shown in Appendix G.
Offsite levy rates are about the same as contained in the current bylaw. However, in real
dollars rates paid by developers will pay approximately $17,550 per hectare less because
these new rates also include recreation offsite infrastructure5. Note, offsite levy rates will
gradually increase in the future as that portion of cost which is allocated to future
development but currently sits beyond the 25-year review period, gradually moves into the
review period.
Offsite Levy Rates (Per Net Hectare): High, Low, & Averages6
Transportation
Levies
Water Levies
Sanitary Sewer
Levies
Recreation
Levies
Total
High
34,534
$
13,252
$
68,223
$
16,050
$
132,059
$
Low
34,534
$
13,252
$
-
$
16,050
$
63,836
$
Weighted Average
34,534
$
13,252
$
11,113
$
16,050
$
74,949
$
Summary of Offsite Levy Rates by Area (Per Net Hectare)
New Area
#
Transportation
Levies
Water
Levies
Sanitary
Levies
Recreation
Levies
Total
1.0
34,534
$
13,252
$
-
$
16,050
$
63,836
$
2.0
34,534
$
13,252
$
5,986
$
16,050
$
69,822
$
3.0
34,534
$
13,252
$
68,223
$
16,050
$
132,059
$
4.0
34,534
$
13,252
$
-
$
16,050
$
63,836
$
5.0
34,534
$
13,252
$
21,807
$
16,050
$
85,643
$
6.0
34,534
$
13,252
$
-
$
16,050
$
63,836
$
7.0
34,534
$
13,252
$
-
$
16,050
$
63,836
$
8.0
34,534
$
13,252
$
29,393
$
16,050
$
93,228
$
9.0
34,534
$
13,252
$
14,742
$
16,050
$
78,577
$
10.0
34,534
$
13,252
$
19,723
$
16,050
$
83,559
$
11.0
34,534
$
13,252
$
-
$
16,050
$
63,836
$
12.0
34,534
$
13,252
$
-
$
16,050
$
63,836
$
5 Developers currently pay about $75,000 per hectares for offsite levies plus $875 per unit (single detached) for
capital recreation contribution fees. Based on a density of 20 units per hectare, the capital recreation contribution
totals about $17,500 per hectare. Together, developers are currently paying about $92,500 on average for offsite
levies and recreation capital contributions.
6 Highs, Lows, and Averages are shown for information purposes only. Developers pay the actual rate applicable
to their specific development area.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 9
CORVUS Business Advisors
6 RECOMMENDATIONS
In addition to implementing the offsite levy rates outlined in Section 5, CORVUS
recommends the following:
1. Amend the balances of water and sewer offsite levy accounts as reflected in
Appendices B8-transportation: $(3,491,326) and C8-water: $438,926; and in so
doing, withdraw excess funds from these accounts as partial repayment of front-
ending obligations due to the Town.
2. Repeal and/or modify the capital recreation contribution fee. This fee is being offset
by the recreation levy outlined in this report.
3. Establish a formal and regular communication and documentation process between
the Finance, Planning, and Engineering departments to enable the accurate
documentation of offsite levy expenditure and front-ending details.
4. Establish individual accounts and/or sub-ledgers for each account to track amounts
owed to each front-ending claimant--the Town is the only front-ending claimant
currently but that will likely change in the future. In so doing, ensure the same
interest charging rate that is reflected in the offsite levy model (in any given year) is
used to calculate interest on outstanding front-ending balances.
5. During the reconciliation of account balances in the future, ensure the interest
earning and charge rates that underpin the offsite levy model for that time period are
used to determine account interest impacts. This is outlined in the offsite levy model
user guide and instructions.
6. Limit withdrawals from offsite levy accounts to only that portion of project cost for
which future development is responsible (i.e., Project Cost X Developer Share %).
7. Amend the offsite levy bylaw to include the requirement for an annual report to
Council outlining the status of levies (monies collected, remaining front-ending debts,
etc.). This is a newly amended requirement of the MGA.
8. Recent changes to the MGA enable municipalities to charge offsite levies for fire
stations, police stations, and libraries. The Town should consider whether it wishes
to adopt such levies in the future and, if so, begin developing the support
documentation that will be needed to create such levies.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 10
CORVUS Business Advisors
7 ACKNOWLEDGEMENTS
CORVUS Business Advisors would like to thank all Town of Stony Plain staff from
Engineering, Planning, and Finance who supported the work of this review.
8 DISCLAIMER
CORVUS Business Advisor has relied upon the Town of Stony Plain and its advisors to
provide all of the data and information used to construct the offsite levy model and create
the rates, such as planning data and assumptions, development forecasts and assumptions,
infrastructure costs and costs estimates, allocations to benefitting parties, allocation to
benefitting areas, and other assumptions etc. As such, CORVUS Business Advisors makes
no guarantee as to the accuracy of the input data and information provided by these groups
or the results that stem from this data and information.
Offsite levy rates are not intended to stay static; they are based on assumptions and the
best available information of the day. Planning assumptions, cost estimates etc. can change
from year-to-year. Accordingly, the MGA requires that offsite levy rates be updated with the
most available information on a regular basis (usually annually). When information changes,
it will be reflected in a future update, and rates adjusted accordingly.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 11
CORVUS Business Advisors
APPENDIX A: OFFSITE LEVY AREAS AND LAND STAGING
The Town of Stony Plain is parsed into 12 offsite levy areas, as shown in the map below.
Areas take into consideration the intersection points of existing/planned infrastructure basins
(e.g., sanitary sewer basins), and also various natural and man-made barriers (e.g., rivers,
highways, etc.). All offsite levy infrastructure costs are allocated to one or more of these
areas.
Offsite Levy Areas
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
Total net development area, the amount of land available for development in all offsite levy
areas, is approximately 2940 ha. In calculating net development area, allowances have
been made for environmental reserves, municipal reserves, and arterial road right of way,
stormwater management facilities, public utility lots, and other non-developable area.
Offsite Levy Net Development Area7
Area Ref. #
Development Area
Gross Area (ha.)
Environmental
Reserves (ha.)
Sub-total
Municipal
Reserves
Arterial ROW,
SWMFs, PULs,
& Other Non
Developable
Net
Development
Area (ha.)
1
North
247.02
12.90
234.13
-
63.04
171.09
2
Central
374.92
1.49
373.43
27.46
79.35
266.62
3
Fifth Meridian
97.74
1.91
95.83
1.83
2.21
91.79
4
North Industrial Park
49.46
-
49.46
-
7.44
42.02
5
North Business Park
83.07
-
83.07
0.90
21.13
61.04
6
West
943.02
8.38
934.63
12.22
182.81
739.59
7
East
738.71
28.34
710.37
43.41
163.70
503.25
8
East Boundary
135.60
10.53
125.07
2.29
21.32
101.46
9
Edgeland and Other
228.76
6.64
222.12
4.40
10.35
207.37
10
Tussic
402.87
0.72
402.15
4.11
18.95
379.09
11
South
56.72
-
56.72
-
1.62
55.10
12
Deerfield
332.97
-
332.97
-
11.19
321.78
3,690.85
70.91
3,619.95
96.62
583.11
2,940.22
Summary of Offsite Levy Net Development Area
Description
ha.
Gross Development Area
3,690.85
Less Environment Reserve
70.91
Less Municipal Reserve
96.62
Less ROW, SWMFs, PULs etc.
583.11
Net Development Area
2,940.22
*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 Town of Stony Plain. 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.
o Less: Any environmental reserves contained within the development area
Including environmental reserves and environmental easements.
o Less: A 10% allowance for Municipal Reserves.
o Less: The measurement of arterial road right of way, stormwater
management facilities, public utility lots, and other non-developable area that
bisects the development lands.
-
Equals: Net Developable Area, which is the area subject to offsite levies.
A rate planning period of 25-years underpins the offsite levy model and rate calculations.
7 Area measurements were provided by Town staff.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 13
CORVUS Business Advisors
Many municipalities use this planning period as it provides a reasonable timeframe to
recoup the costs associated with offsite levy infrastructure construction, and it aligns with the
timeframes of many municipal capital planning and construction cycles.
Of the 2940 ha. of net land available across all offsite levy areas, approximately 754 ha.
(26%) have been developed to date, and planners estimate that approximately 415 ha.
(14%) will develop during the next 25-years (the rate planning period) as shown in the tables
below.
Summary of Anticipated Development during the 25 Year Rate Planning Period
Developed To Date
754.29
25.7%
Developed In Next 25 Years
414.81
14.1%
Developed Beyond 25 Years
1,771.12
60.2%
Net Development Area
2,940.22
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 14
CORVUS Business Advisors
Anticipated Development during the 25 Year Rate Planning Period
Area
Ref. #
Development Area
Area
Developed in
Next 25 years
(Net ha.)
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
1
North
18.28
3.66
3.66
3.66
3.66
3.66
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
Central
12.94
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
3
Fifth Meridian
16.45
-
-
-
-
-
-
-
-
-
-
1.10
1.10
1.10
1.10
1.10
1.10
1.10
1.10
1.10
1.10
1.10
1.10
1.10
1.10
1.10
4
North Industrial Park
35.03
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
North Business Park
18.11
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
6
West
103.83
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
4.15
7
East
76.11
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
3.04
8
East Boundary
57.95
-
-
-
-
-
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
2.90
9
Edgeland and Other
37.96
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
1.52
10
Tussic
38.15
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
1.53
11
South
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12
Deerfield
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
414.81
18.64
18.64
18.64
18.64
18.64
17.88
17.88
17.88
17.88
17.88
15.48
15.48
15.48
15.48
15.48
15.48
15.48
15.48
15.48
15.48
15.48
15.48
15.48
15.47
15.48
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 15
CORVUS Business Advisors
APPENDIX B: TRANSPORTATION
B1. Transportation Offsite Infrastructure
To support future growth, transportation offsite infrastructure is required. The estimated cost
of this infrastructure is based upon: (a) actual construction costs to the cut-off date, (b)
debenture interest associated with financing, and (c) future cost estimates. Total cost is
approximately $73.36 million as outlined in the table and map below. It is important to note
that these costs represent "gross" costs, of which only a portion will go to support
development during the 25-year review period. The remainder of this section outlines how
the "net" costs for development are determined.
Summary of Transportation Offsite Infrastructure
Item
Project Description
Cost of
Completed Work
Future Debenture
Interest
Estimated Cost of
Work Yet to be
Completed
Total Project Cost
1
Veterans Blvd Hwy 16A to Fairway Drive
$ 12,944,191
1,410,767
$
4,846,158
$
19,201,117
$
2
Traffic Signals Golf Course Road/49 Ave
$ 337,581
-
$
-
$
337,581
$
3
Traffic Signals Golf Course Road/Fairways Drive
$ 204,620
-
$
-
$
204,620
$
4
Traffic Signals 79 Ave/Highpark Road
$ 201,614
-
$
-
$
201,614
$
5
Northpark Drive/Boulder Blvd Intersection & Signals
$ 159,043
-
$
-
$
159,043
$
6
Highway 16A/South Park Drive Intersection Improvements
$ 1,394,743
-
$
-
$
1,394,743
$
7
Highway 779 & Highway 16A WB Ramp - Signalization
$ -
-
$
288,000
$
288,000
$
8
Highway 628 & Westerra Drive - Add Westbound and
Eastbound Left-Turn Lanes
$ -
-
$
546,000
$
546,000
$
9
Highway 628 & Veterans Boulevard - Signalization
$ -
-
$
230,000
$
230,000
$
10
Highway 16A & South Park Drive - Additional Turn Lanes
$ -
-
$
3,174,000
$
3,174,000
$
11
Highway 779 - Widen to 4-lane Cross Section
$ -
-
$
1,032,000
$
1,032,000
$
12
49 Avenue - Two-way Turn Lane
$ -
-
$
924,000
$
924,000
$
13
Golf Course Road - Paving
$ -
-
$
2,760,000
$
2,760,000
$
14
49 Avenue - West Extension Phase 1
$ -
-
$
2,432,000
$
2,432,000
$
15
Highway 779 & Highway 16A EB Ramp - Signalization
$ -
-
$
288,000
$
288,000
$
16
Highway 16A & Glory Hills Road - Signalization
$ -
-
$
288,000
$
288,000
$
17
Highway 16A & Rosenthal Road - Signalization
$ -
-
$
322,000
$
322,000
$
18
Highway 779 & 44th Avenue - Additional Turn Lanes
$ -
-
$
1,173,000
$
1,173,000
$
19
Highway 628 (Highway 779 to Golf Course Road) - Widen to
4-Lanes Urban
$ -
-
$
5,422,000
$
5,422,000
$
20
Highway 779 (Highway 628 to 57 Avenue) - Widen to 4-Lanes
$ -
-
$
2,964,000
$
2,964,000
$
21
Golf Course Road (Highway 628 to Fairway Drive) - Widen to
4-Lanes
$ -
-
$
4,646,000
$
4,646,000
$
22
49th Avenue - West Extension Phase 2
$ -
-
$
7,988,000
$
7,988,000
$
23
Veterans Blvd - Fairways Road to Hwy 628 2 Lane Expansion
$ -
-
$
4,950,000
$
4,950,000
$
24
49th Avenue - Golf Course Road to Hwy 779 - Lane Expansion
$ -
-
$
3,300,000
$
3,300,000
$
25
Range Road 12 Roadway Upgrades
$ -
-
$
9,130,000
$
9,130,000
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020
$ -
-
$
-
$
-
$
15,241,792
$
1,410,767
$
56,703,158
$
73,355,718
$
*Costs estimates provided by Town staff.
**Estimates include engineering, contingencies, and land costs if any.
***Historical financing charges (if any) are included in the cost of completed work.
****Unallocated levies to end-2020 were set-up as an individual project (#100) and credited 100% to future
development and to all offsite levy areas.
*****Offsite infrastructure definitions are contained in Appendix F.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
Location of Transportation Offsite Infrastructure
B2. Transportation Offsite Infrastructure Grants & Contributions to Date
The MGA enables the Town to allocate the costs of offsite infrastructure to development,
other than those costs that have been provided by way of special ear-marked grant or
contribution (i.e., contributed infrastructure). Town of Stony Plain has/will receive $2.74
million in special ear-marked grants or contributions for transportation offsite levy
infrastructure as shown in the table below (note, if the Town receives other ear-marked
grants or contributions in the future, it will be reflected in one of the annual updates and
rates adjusted accordingly). The result is that the total reduced project estimated cost is
$70.62 million.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 17
CORVUS Business Advisors
Special Grants and Contributions for Transportation Offsite Infrastructure
Item
Project Description
Total Project Cost
Special Provincial
Grants (Historic &
Future)
Developer
Agreement
Contributions
(Historic & Future)
Other
Contributions
(Historic & Future)
Reduced Project
Cost
1
Veterans Blvd Hwy 16A to Fairway Drive
19,201,117
$
-
$
-
$
-
$
19,201,117
$
2
Traffic Signals Golf Course Road/49 Ave
337,581
$
-
$
337,581
$
-
$
-
$
3
Traffic Signals Golf Course Road/Fairways Drive
204,620
$
-
$
204,620
$
-
$
-
$
4
Traffic Signals 79 Ave/Highpark Road
201,614
$
-
$
201,614
$
-
$
-
$
5
Northpark Drive/Boulder Blvd Intersection & Signals
159,043
$
-
$
159,043
$
-
$
-
$
6
Highway 16A/South Park Drive Intersection Improvements
1,394,743
$
-
$
1,394,743
$
-
$
-
$
7
Highway 779 & Highway 16A WB Ramp - Signalization
288,000
$
-
$
-
$
-
$
288,000
$
8
Highway 628 & Westerra Drive - Add Westbound and
Eastbound Left-Turn Lanes
546,000
$
-
$
-
$
-
$
546,000
$
9
Highway 628 & Veterans Boulevard - Signalization
230,000
$
-
$
-
$
-
$
230,000
$
10
Highway 16A & South Park Drive - Additional Turn Lanes
3,174,000
$
-
$
195,171
$
-
$
2,978,829
$
11
Highway 779 - Widen to 4-lane Cross Section
1,032,000
$
-
$
-
$
-
$
1,032,000
$
12
49 Avenue - Two-way Turn Lane
924,000
$
-
$
-
$
-
$
924,000
$
13
Golf Course Road - Paving
2,760,000
$
-
$
-
$
-
$
2,760,000
$
14
49 Avenue - West Extension Phase 1
2,432,000
$
-
$
246,349
$
-
$
2,185,651
$
15
Highway 779 & Highway 16A EB Ramp - Signalization
288,000
$
-
$
-
$
-
$
288,000
$
16
Highway 16A & Glory Hills Road - Signalization
288,000
$
-
$
-
$
-
$
288,000
$
17
Highway 16A & Rosenthal Road - Signalization
322,000
$
-
$
-
$
-
$
322,000
$
18
Highway 779 & 44th Avenue - Additional Turn Lanes
1,173,000
$
-
$
-
$
-
$
1,173,000
$
19
Highway 628 (Highway 779 to Golf Course Road) - Widen to
4-Lanes Urban
5,422,000
$
-
$
-
$
-
$
5,422,000
$
20
Highway 779 (Highway 628 to 57 Avenue) - Widen to 4-Lanes
2,964,000
$
-
$
-
$
-
$
2,964,000
$
21
Golf Course Road (Highway 628 to Fairway Drive) - Widen to
4-Lanes
4,646,000
$
-
$
-
$
-
$
4,646,000
$
22
49th Avenue - West Extension Phase 2
7,988,000
$
-
$
-
$
-
$
7,988,000
$
23
Veterans Blvd - Fairways Road to Hwy 628 2 Lane Expansion
4,950,000
$
-
$
-
$
-
$
4,950,000
$
24
49th Avenue - Golf Course Road to Hwy 779 - Lane Expansion
3,300,000
$
-
$
-
$
-
$
3,300,000
$
25
Range Road 12 Roadway Upgrades
9,130,000
$
-
$
-
$
-
$
9,130,000
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020
-
$
-
$
-
$
-
$
-
$
73,355,718
$
-
$
2,739,121
$
-
$
70,616,596
$
B3. Year of Construction
The timing of construction is used to determine the impact of inflation on cost, the impact of
forecast account balances, and the estimate of financial oversizing (described in the
Section that follows). The Town anticipates construction of offsite infrastructure as outlined
in the table below. Note, if this schedule is adjusted in the future, it will be reflected in one of
the Town's annual rate/bylaw updates.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 18
CORVUS Business Advisors
Forecast Year of Construction
Item
Project Description
Construction Start
Year
1
Veterans Blvd Hwy 16A to Fairway Drive
2015
2
Traffic Signals Golf Course Road/49 Ave
2018
3
Traffic Signals Golf Course Road/Fairways Drive
2015
4
Traffic Signals 79 Ave/Highpark Road
2018
5
Northpark Drive/Boulder Blvd Intersection & Signals
2013
6
Highway 16A/South Park Drive Intersection Improvements
2008
7
Highway 779 & Highway 16A WB Ramp - Signalization
2026
8
Highway 628 & Westerra Drive - Add Westbound and
Eastbound Left-Turn Lanes
2025
9
Highway 628 & Veterans Boulevard - Signalization
2030
10
Highway 16A & South Park Drive - Additional Turn Lanes
2032
11
Highway 779 - Widen to 4-lane Cross Section
2029
12
49 Avenue - Two-way Turn Lane
2032
13
Golf Course Road - Paving
2035
14
49 Avenue - West Extension Phase 1
2041
15
Highway 779 & Highway 16A EB Ramp - Signalization
2042
16
Highway 16A & Glory Hills Road - Signalization
2043
17
Highway 16A & Rosenthal Road - Signalization
2045
18
Highway 779 & 44th Avenue - Additional Turn Lanes
2045
19
Highway 628 (Highway 779 to Golf Course Road) - Widen to
4-Lanes Urban
2051
20
Highway 779 (Highway 628 to 57 Avenue) - Widen to 4-Lanes
2051
21
Golf Course Road (Highway 628 to Fairway Drive) - Widen to
4-Lanes
2051
22
49th Avenue - West Extension Phase 2
2051
23
Veterans Blvd - Fairways Road to Hwy 628 2 Lane Expansion
2055
24
49th Avenue - Golf Course Road to Hwy 779 - Lane Expansion
2055
25
Range Road 12 Roadway Upgrades
2055
*The share of projects constructed beyond the 25-year review period are not included in rates today (see
financial oversizing in next section).
**Project costs are inflated by 2% per annum to 2024 and 3% per annum thereafter to the year of construction.
B4. Transportation Offsite Infrastructure Benefiting Parties
The transportation offsite infrastructure previously outlined will benefit various parties to
varying degrees. Three potential benefiting parties were identified including:
1. Town of Stony Plain - a portion of the transportation infrastructure which is required
to service existing residents. This residual benefit is determined at the point in time
when the project is added to the bylaw (i.e., it does not fluctuate from year-to-year).
2. Other Stakeholders - other municipalities that benefit from the infrastructure.
3. Future Development:
o Financial Oversizing - that portion of cost (i.e., levyable transportation
infrastructure costs) which benefits future development beyond the 25-year
review period.
o In Rates - that portion of cost (i.e., levyable transportation
infrastructure costs) which benefits future development within the 25-
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 19
CORVUS Business Advisors
year review period.
The table below outlines the allocation of transportation offsite levy infrastructure costs to
benefiting parties.
Allocation of Transportation Infrastructure to Benefiting Parties
Item
Project Description
Reduced Project
Cost
Muni Share %
Other Stakeholder
Share
Developer Share
Beyond 25 Yrs
(Financial
Oversizing %)
OSL / Developer
Share %
1
Veterans Blvd Hwy 16A to Fairway Drive
19,201,117
$
100.00%
2
Traffic Signals Golf Course Road/49 Ave
-
$
100.00%
3
Traffic Signals Golf Course Road/Fairways Drive
-
$
100.00%
4
Traffic Signals 79 Ave/Highpark Road
-
$
100.00%
5
Northpark Drive/Boulder Blvd Intersection & Signals
-
$
100.00%
6
Highway 16A/South Park Drive Intersection Improvements
-
$
100.00%
7
Highway 779 & Highway 16A WB Ramp - Signalization
288,000
$
50.00%
10.00%
40.00%
8
Highway 628 & Westerra Drive - Add Westbound and
Eastbound Left-Turn Lanes
546,000
$
16.00%
84.00%
9
Highway 628 & Veterans Boulevard - Signalization
230,000
$
50.00%
18.00%
32.00%
10
Highway 16A & South Park Drive - Additional Turn Lanes
2,978,829
$
44.00%
56.00%
11
Highway 779 - Widen to 4-lane Cross Section
1,032,000
$
32.00%
68.00%
12
49 Avenue - Two-way Turn Lane
924,000
$
44.00%
56.00%
13
Golf Course Road - Paving
2,760,000
$
56.00%
44.00%
14
49 Avenue - West Extension Phase 1
2,185,651
$
80.00%
20.00%
15
Highway 779 & Highway 16A EB Ramp - Signalization
288,000
$
50.00%
42.00%
8.00%
16
Highway 16A & Glory Hills Road - Signalization
288,000
$
50.00%
44.00%
6.00%
17
Highway 16A & Rosenthal Road - Signalization
322,000
$
50.00%
48.00%
2.00%
18
Highway 779 & 44th Avenue - Additional Turn Lanes
1,173,000
$
96.00%
4.00%
19
Highway 628 (Highway 779 to Golf Course Road) - Widen to
4-Lanes Urban
5,422,000
$
100.00%
0.00%
20
Highway 779 (Highway 628 to 57 Avenue) - Widen to 4-Lanes
2,964,000
$
100.00%
0.00%
21
Golf Course Road (Highway 628 to Fairway Drive) - Widen to
4-Lanes
4,646,000
$
100.00%
0.00%
22
49th Avenue - West Extension Phase 2
7,988,000
$
100.00%
0.00%
23
Veterans Blvd - Fairways Road to Hwy 628 2 Lane Expansion
4,950,000
$
100.00%
0.00%
24
49th Avenue - Golf Course Road to Hwy 779 - Lane Expansion
3,300,000
$
100.00%
0.00%
25
Range Road 12 Roadway Upgrades
9,130,000
$
100.00%
0.00%
100
Unallocated Offsite Levies Collected to Dec 31, 2020
-
$
100.00%
70,616,596
$
*Allocations were determined by Town staff.
** Projects with costs allocated to other stakeholders are associated with road projects partially funded by Alberta
Transportation.
***Financial oversizing is determined by separating out the pro rata portion of developer cost beyond the 25-year
review period, in comparison with the anticipated year of construction. As the years move forward and rates are
updated, these additional developer costs will be included in rate calculations. For example, a project which is
slated to be constructed in year 20 of the 25-year review period will have 20% (5/25) of its costs in rates today,
and 80% (20/25) of its costs will sit beyond the 25-year review period.
B5. Existing Receipts & Adjusted Levy Cost
Using the offsite levy share percentages shown in the previous section and applying those
percentages to project costs results in an offsite levy cost of approximately $24.48 million.
However, prior to allocating these costs to benefiting areas, existing offsite levy receipts
collected from developers (if any) need to be considered in determining the residual/net
costs to developers. Town staff have advised that $9.21 million in transportation levies
have been applied/collected as shown in the table below. This results in an adjusted offsite
levy cost of approximately $15.27 million.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 20
CORVUS Business Advisors
Offsite Levy Funds Applied to Date
Item
Project Description
OSL / Developer
Cost
Offsite Levy
Funds Collected
to Dec 31, 2020
Offsite Levy
Funds Collected
Starting Jan 1,
2021
Adjusted
Developer (Levy)
Cost
1
Veterans Blvd Hwy 16A to Fairway Drive
19,201,117
$
7,831,609
$
-
$
11,369,508
$
2
Traffic Signals Golf Course Road/49 Ave
-
$
-
$
-
$
-
$
3
Traffic Signals Golf Course Road/Fairways Drive
-
$
-
$
-
$
-
$
4
Traffic Signals 79 Ave/Highpark Road
-
$
-
$
-
$
-
$
5
Northpark Drive/Boulder Blvd Intersection & Signals
-
$
-
$
-
$
-
$
6
Highway 16A/South Park Drive Intersection Improvements
-
$
59,619
$
-
$
(59,619)
$
7
Highway 779 & Highway 16A WB Ramp - Signalization
115,200
$
-
$
-
$
115,200
$
8
Highway 628 & Westerra Drive - Add Westbound and
Eastbound Left-Turn Lanes
458,640
$
-
$
-
$
458,640
$
9
Highway 628 & Veterans Boulevard - Signalization
73,600
$
-
$
-
$
73,600
$
10
Highway 16A & South Park Drive - Additional Turn Lanes
1,668,144
$
-
$
-
$
1,668,144
$
11
Highway 779 - Widen to 4-lane Cross Section
701,760
$
-
$
-
$
701,760
$
12
49 Avenue - Two-way Turn Lane
517,440
$
-
$
-
$
517,440
$
13
Golf Course Road - Paving
1,214,400
$
-
$
-
$
1,214,400
$
14
49 Avenue - West Extension Phase 1
437,130
$
-
$
-
$
437,130
$
15
Highway 779 & Highway 16A EB Ramp - Signalization
23,040
$
-
$
-
$
23,040
$
16
Highway 16A & Glory Hills Road - Signalization
17,280
$
-
$
-
$
17,280
$
17
Highway 16A & Rosenthal Road - Signalization
6,440
$
-
$
-
$
6,440
$
18
Highway 779 & 44th Avenue - Additional Turn Lanes
46,920
$
-
$
-
$
46,920
$
19
Highway 628 (Highway 779 to Golf Course Road) - Widen to
4-Lanes Urban
-
$
-
$
-
$
-
$
20
Highway 779 (Highway 628 to 57 Avenue) - Widen to 4-Lanes
-
$
-
$
-
$
-
$
21
Golf Course Road (Highway 628 to Fairway Drive) - Widen to
4-Lanes
-
$
-
$
-
$
-
$
22
49th Avenue - West Extension Phase 2
-
$
-
$
-
$
-
$
23
Veterans Blvd - Fairways Road to Hwy 628 2 Lane Expansion
-
$
-
$
-
$
-
$
24
49th Avenue - Golf Course Road to Hwy 779 - Lane Expansion
-
$
-
$
-
$
-
$
25
Range Road 12 Roadway Upgrades
-
$
-
$
-
$
-
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020
-
$
1,315,288
$
-
$
(1,315,288)
$
24,481,111
$
9,206,516
$
-
$
15,274,595
$
B6. Summary of Transportation Offsite Levy Cost Flow-through
As shown in the figure below, the total cost for transportation infrastructure that forms the
basis of the rate is approximately $15.27 million. The cost allocations to each benefitting
party are based on the benefitting percentages shown in previous section. The offsite levy
balance (due from developers) is allocated to various benefitting areas (as described in the
next section).
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 21
CORVUS Business Advisors
Total Transportation Offsite Levy Costs
Project
Costs
$73.36M
Less: Special
Grants &
Contributions
$2.74M
= Project
Balance
$70.62M
Less: Levy
Receipts
$9.21M
= Future
Development
(OSL Share)
$24.48M
= Off-site
Balance
$15.27M
= Other
Share
$0.71M
= Existing
Development
(Muni Share)
$0.00
= Future
Development
"Financial
Oversizing"
$45.43M
B7. Transportation Infrastructure Benefiting Areas
Net developer costs for each project have been allocated to multiple benefiting offsite levy
area (see tables below). Allocations are denoted with a "1" below applicable area numbers.
Benefiting areas were determined by Town staff. The lands anticipated to develop over the
25-years in each offsite levy benefitting area are used to determine rates.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 22
CORVUS Business Advisors
Transportation Allocations to Benefitting Areas
Item
Project Description
Developer Cost
1
2
3
4
5
6
7
8
9
10
11
12
1
Veterans Blvd Hwy 16A to Fairway Drive
$ 11,369,508
1
1
1
1
1
1
1
1
1
1
1
1
2
Traffic Signals Golf Course Road/49 Ave
$ -
1
1
1
1
1
1
1
1
1
1
1
1
3
Traffic Signals Golf Course Road/Fairways Drive
$ -
1
1
1
1
1
1
1
1
1
1
1
1
4
Traffic Signals 79 Ave/Highpark Road
$ -
1
1
1
1
1
1
1
1
1
1
1
1
5
Northpark Drive/Boulder Blvd Intersection & Signals
$ -
1
1
1
1
1
1
1
1
1
1
1
1
6
Highway 16A/South Park Drive Intersection Improvements $ (59,619)
1
1
1
1
1
1
1
1
1
1
1
1
7
Highway 779 & Highway 16A WB Ramp - Signalization
$ 115,200
1
1
1
1
1
1
1
1
1
1
1
1
8
Highway 628 & Westerra Drive - Add Westbound and
Eastbound Left-Turn Lanes
$ 458,640
1
1
1
1
1
1
1
1
1
1
1
1
9
Highway 628 & Veterans Boulevard - Signalization
$ 73,600
1
1
1
1
1
1
1
1
1
1
1
1
10
Highway 16A & South Park Drive - Additional Turn Lanes $ 1,668,144
1
1
1
1
1
1
1
1
1
1
1
1
11
Highway 779 - Widen to 4-lane Cross Section
$ 701,760
1
1
1
1
1
1
1
1
1
1
1
1
12
49 Avenue - Two-way Turn Lane
$ 517,440
1
1
1
1
1
1
1
1
1
1
1
1
13
Golf Course Road - Paving
$ 1,214,400
1
1
1
1
1
1
1
1
1
1
1
1
14
49 Avenue - West Extension Phase 1
$ 437,130
1
1
1
1
1
1
1
1
1
1
1
1
15
Highway 779 & Highway 16A EB Ramp - Signalization
$ 23,040
1
1
1
1
1
1
1
1
1
1
1
1
16
Highway 16A & Glory Hills Road - Signalization
$ 17,280
1
1
1
1
1
1
1
1
1
1
1
1
17
Highway 16A & Rosenthal Road - Signalization
$ 6,440
1
1
1
1
1
1
1
1
1
1
1
1
18
Highway 779 & 44th Avenue - Additional Turn Lanes
$ 46,920
1
1
1
1
1
1
1
1
1
1
1
1
19
Highway 628 (Highway 779 to Golf Course Road) -
Widen to 4-Lanes Urban
$ -
1
1
1
1
1
1
1
1
1
1
1
1
20
Highway 779 (Highway 628 to 57 Avenue) - Widen to 4-
Lanes
$ -
1
1
1
1
1
1
1
1
1
1
1
1
21
Golf Course Road (Highway 628 to Fairway Drive) -
Widen to 4-Lanes
$ -
1
1
1
1
1
1
1
1
1
1
1
1
22
49th Avenue - West Extension Phase 2
$ -
1
1
1
1
1
1
1
1
1
1
1
1
23
Veterans Blvd - Fairways Road to Hwy 628 2 Lane
Expansion
$ -
1
1
1
1
1
1
1
1
1
1
1
1
24
49th Avenue - Golf Course Road to Hwy 779 - Lane
Expansion
$ -
1
1
1
1
1
1
1
1
1
1
1
1
25
Range Road 12 Roadway Upgrades
$ -
1
1
1
1
1
1
1
1
1
1
1
1
100 Unallocated Offsite Levies Collected to Dec 31, 2020
$ (1,315,288)
1
1
1
1
1
1
1
1
1
1
1
1
15,274,595
$
B8. Account Balance
At December 31st, 2020 the transportation account balance was in a deficit of
$(3,491,325.95). This amount takes into consideration expenditures and front-ending
obligations up to end-2020. This balance also assumes that remaining funds of $1,315,288
currently in the account are transferred to the Town to pay down front-ending obligations
owed to the Town.
Transportation Offsite Levy Reserve Balance
Description
Dr
Cr
Balance
Opening Balance at Jan 1, 2008
1,920,129.03
$
OSL Receipts 2008-2020
6,281,512.83
$
8,201,641.86
$
Withdrawals/Applied to OSL Projects (2008-2020)
7,891,231.34
$
310,410.52
$
Interest Earned (Charged) 2008-2020
1,004,877.59
$
1,315,288.11
$
Closing Balance at Dec 31, 2020 Not Including OSL Share of Net
Expenditures and Front-ending Repayments
1,315,288.11
$
Net Project Expenditures (OSL Share) In Addition to Withdrawals Applied
to Projects (2008-2020)
4,806,614.06
$
(3,491,325.95)
$
Closing Balance at Dec 31, 2020 (After Partial Repayment of Front-ending)
(3,491,325.95)
$
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 23
CORVUS Business Advisors
B9. Development and Transportation Infrastructure Staging Impacts
Transportation offsite infrastructure will be constructed in staged fashion over the 25-year
review period. We have reviewed the availability of offsite levy funds to meet these
construction requirements and found that offsite levy account 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.
To compensate parties for capital they provide in front-ending offsite infrastructure
construction, a 2.09%8 interest allowance has been charged to the account when it is
forecast to be in a negative balance. Further, a 1.00% interest credit has been provided to
the account when it is forecast to be in a positive balance. The graph and table below
outline the forecast transportation levy account balances over the 25-year development
period.
If necessary, an interest staging adjustment has been applied to rates (slightly positive or
slightly negative) to ensure that the forecast account balance at the end of the 25-year
review period always returns to break-even (i.e., developers are not charged too much
thereby providing a windfall to the Town, nor are they charged too little thereby placing an
unequitable burden on taxpayers).
Anticipated Transportation Offsite Levy Account Balances
$(9,000,000)
$(8,000,000)
$(7,000,000)
$(6,000,000)
$(5,000,000)
$(4,000,000)
$(3,000,000)
$(2,000,000)
$(1,000,000)
$-
2021
2024
2027
2030
2033
2036
2039
2042
2045
$
Year
Transportation Reserve
Reserve Balance
8 The 20-year debenture rate at the Alberta Capital Finance Authority at the time of writing was ~2.09%.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
/ 24
CORVUS Business Advisors
Anticipated Transportation Offsite Levy Account Balances
Reserve Balance
(3,491,326)
$
Year
Receipts
Expenditure
Interest
Balance
2021
643,826
$
4,992,290
$
(163,852)
$
(8,003,642)
$
2022
656,702
$
137,096
$
(156,416)
$
(7,640,452)
$
2023
669,836
$
139,838
$
(148,608)
$
(7,259,062)
$
2024
683,233
$
122,258
$
(139,990)
$
(6,838,077)
$
2025
703,730
$
627,240
$
(141,317)
$
(6,902,904)
$
2026
695,354
$
259,400
$
(135,159)
$
(6,602,109)
$
2027
716,215
$
111,329
$
(125,342)
$
(6,122,565)
$
2028
737,701
$
114,669
$
(114,940)
$
(5,614,473)
$
2029
759,832
$
957,814
$
(121,480)
$
(5,933,935)
$
2030
782,569
$
190,583
$
(111,647)
$
(5,453,596)
$
2031
697,632
$
100,242
$
(101,495)
$
(4,957,700)
$
2032
718,561
$
3,015,532
$
(151,623)
$
(7,406,293)
$
2033
740,118
$
79,760
$
(140,990)
$
(6,886,925)
$
2034
762,321
$
54,768
$
(129,149)
$
(6,308,521)
$
2035
785,191
$
1,840,316
$
(153,900)
$
(7,517,547)
$
2036
808,747
$
29,052
$
(140,821)
$
(6,878,673)
$
2037
833,009
$
29,923
$
(126,980)
$
(6,202,567)
$
2038
857,999
$
-
$
(111,701)
$
(5,456,269)
$
2039
883,739
$
-
$
(95,566)
$
(4,668,096)
$
2040
910,252
$
-
$
(78,539)
$
(3,836,383)
$
2041
937,559
$
766,733
$
(76,610)
$
(3,742,167)
$
2042
965,686
$
41,625
$
(58,898)
$
(2,877,005)
$
2043
994,547
$
32,155
$
(40,015)
$
(1,954,628)
$
2044
1,024,185
$
-
$
(19,446)
$
(949,890)
$
2045
1,055,231
$
105,341
$
(0)
$
(0)
$
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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APPENDIX C: WATER
C1. Water Offsite Infrastructure
In order to support future growth, water offsite infrastructure is required. The estimated cost
of this infrastructure is based upon: (a) actual construction costs to the cut-off date, (b)
debenture interest associated with financing, and (c) future cost estimates. Total cost is
approximately $62.20 million as outlined in the table and map below. It is important to note
that these costs represent "gross" costs, of which only a portion will go to support
development during the 25-year review period. The remainder of this section outlines how
the "net" costs for development are determined.
Summary of Water Offsite Infrastructure
Item
Project Description
Cost of Completed
Work
Future Debenture
Interest
Estimated Cost of
Work Yet to be
Completed
Total Project
Estimated Cost
1
79 Ave Golf Course Road to Boundary Road
$ 3,970,699 $ -
-
$
3,970,699
$
2
44 Ave. Waterline
$ 63,147 $ -
-
$
63,147
$
3
CRPWSC Fill Line to High Park
$ - $ -
3,058,000
$
3,058,000
$
4
Watermain Golf Course Road (300mm)
$ - $ -
1,582,000
$
1,582,000
$
5
Meridian Heights Reservoir Upgrades
$ - $ -
884,000
$
884,000
$
6
Watermain 79 Avenue West Extension 1 (350mm)
$ - $ -
630,000
$
630,000
$
7
Meridian Heights Reservoir Outlet (600mm)
$ - $ -
98,400
$
98,400
$
8
Watermain 43 Avenue Meridian Heights (450mm)
$ - $ -
221,600
$
221,600
$
9
Watermain 79 Avenue West Extension 2 (350mm)
$ - $ -
756,000
$
756,000
$
10
High Park Reservoir Storage Expansion (4500m)
$ - $ -
4,500,000
$
4,500,000
$
11
West Reservoir outlet
$ - $ -
53,700
$
53,700
$
12
Watermain 44 Avenue West of 50 St. (350mm)
$ - $ -
756,000
$
756,000
$
13
Watermain Brickyard Drive Connection to 44 Ave (350mm)
$ - $ -
756,000
$
756,000
$
14
Watermain Brickyard Drive to West Reservoir (350mm)
$ - $ -
1,638,000
$
1,638,000
$
15
Watermain 79 Avenue East to Veterans (350mm)
$ - $ -
2,066,400
$
2,066,400
$
16
Watermain North of 79 Avenue to Tussic (350mm)
$ - $ -
289,800
$
289,800
$
17
West Reservoir and Pumphouse
$ - $ -
15,000,000
$
15,000,000
$
18
East Reservoir Outlet (600mm)
$ - $ -
63,300
$
63,300
$
19
Watermain 79 Avenue to East Reservoir (350mm)
$ - $ -
541,800
$
541,800
$
20
Watermain West Reservoir to West (500mm)
$ - $ -
1,467,800
$
1,467,800
$
21
Watermain West Zone north extension (350mm)
$ - $ -
296,100
$
296,100
$
22
Watermain Hwy 16A Crossing West Zone North (350mm)
$ - $ -
195,000
$
195,000
$
23
Watermain West Zone loop (350mm)
$ - $ -
8,316,000
$
8,316,000
$
24
East Reservoir and Pumphouse
$ - $ -
15,000,000
$
15,000,000
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020
$ - $ -
-
$
-
$
4,033,846
$
-
$
58,169,900
$
62,203,746
$
*Costs estimates provided by Town staff.
**Estimates include engineering, contingencies, and land costs if any.
***Historical financing charges (if any) are included in the cost of completed work.
****Unallocated levies to end-2020 were set-up as an individual project (#100) and credited 100% to future
development and to all offsite levy areas.
*****Offsite infrastructure definitions are contained in Appendix F.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
Location of Water Offsite Infrastructure
C2. Water Offsite Infrastructure Grants & Contributions to Date
The MGA enables the Town to allocate the costs of offsite infrastructure to development,
other than those costs that have been provided by way of special ear-marked grant or
contribution (i.e., contributed infrastructure). The Town has/will receive approximately $2.88
million in special ear-marked grants and contributions for water offsite levy infrastructure as
shown in the table below (note, if the Town receives other ear-marked grants or
contributions in the future, it will be reflected in one of the annual updates and rates adjusted
accordingly). The result is that the total reduced project estimated cost is $59.32 million.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
Special Grants and Contributions for Water Offsite Infrastructure
Item
Project Description
Total Project
Estimated Cost
Special Provincial
Grants (Historic &
Future)
Developer
Agreement
Contributions
(Historic & Future)
Other
Contributions
(Historic & Future)
Reduced Project
Estimated Cost
1
79 Ave Golf Course Road to Boundary Road
3,970,699
$
$ 2,882,980 $ - $ -
1,087,719
$
2
44 Ave. Waterline
63,147
$
$ - $ - $ -
63,147
$
3
CRPWSC Fill Line to High Park
3,058,000
$
$ - $ - $ -
3,058,000
$
4
Watermain Golf Course Road (300mm)
1,582,000
$
$ - $ - $ -
1,582,000
$
5
Meridian Heights Reservoir Upgrades
884,000
$
$ - $ - $ -
884,000
$
6
Watermain 79 Avenue West Extension 1 (350mm)
630,000
$
$ - $ - $ -
630,000
$
7
Meridian Heights Reservoir Outlet (600mm)
98,400
$
$ - $ - $ -
98,400
$
8
Watermain 43 Avenue Meridian Heights (450mm)
221,600
$
$ - $ - $ -
221,600
$
9
Watermain 79 Avenue West Extension 2 (350mm)
756,000
$
$ -
$ -
$ -
756,000
$
10
High Park Reservoir Storage Expansion (4500m)
4,500,000
$
$ - $ - $ -
4,500,000
$
11
West Reservoir outlet
53,700
$
$ -
$ -
$ -
53,700
$
12
Watermain 44 Avenue West of 50 St. (350mm)
756,000
$
$ - $ - $ -
756,000
$
13
Watermain Brickyard Drive Connection to 44 Ave (350mm)
756,000
$
$ -
$ -
$ -
756,000
$
14
Watermain Brickyard Drive to West Reservoir (350mm)
1,638,000
$
$ - $ - $ -
1,638,000
$
15
Watermain 79 Avenue East to Veterans (350mm)
2,066,400
$
$ -
$ -
$ -
2,066,400
$
16
Watermain North of 79 Avenue to Tussic (350mm)
289,800
$
$ - $ - $ -
289,800
$
17
West Reservoir and Pumphouse
15,000,000
$
$ -
$ -
$ -
15,000,000
$
18
East Reservoir Outlet (600mm)
63,300
$
$ - $ - $ -
63,300
$
19
Watermain 79 Avenue to East Reservoir (350mm)
541,800
$
$ -
$ -
$ -
541,800
$
20
Watermain West Reservoir to West (500mm)
1,467,800
$
$ - $ - $ -
1,467,800
$
21
Watermain West Zone north extension (350mm)
296,100
$
$ -
$ -
$ -
296,100
$
22
Watermain Hwy 16A Crossing West Zone North (350mm)
195,000
$
$ - $ - $ -
195,000
$
23
Watermain West Zone loop (350mm)
8,316,000
$
$ -
$ -
$ -
8,316,000
$
24
East Reservoir and Pumphouse
15,000,000
$
$ - $ - $ -
15,000,000
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020
-
$
$ -
$ -
$ -
-
$
62,203,746
$
2,882,980
$
-
$
-
$
59,320,766
$
C3. Year of Construction
The timing of construction is used to determine the impact of inflation on cost, the impact of
forecast account balances, and the estimate of financial oversizing (described in the
Section that follows). The Town anticipates construction of offsite infrastructure as outlined
in the table below. Note, if this schedule is adjusted in the future, it will be reflected in one of
the Town's annual rate/bylaw updates.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
Forecast Year of Construction
Item
Project Description
Construction Start
Year
1
79 Ave Golf Course Road to Boundary Road
2009
2
44 Ave. Waterline
2008
3
CRPWSC Fill Line to High Park
2024
4
Watermain Golf Course Road (300mm)
2024
5
Meridian Heights Reservoir Upgrades
2026
6
Watermain 79 Avenue West Extension 1 (350mm)
2030
7
Meridian Heights Reservoir Outlet (600mm)
2040
8
Watermain 43 Avenue Meridian Heights (450mm)
2040
9
Watermain 79 Avenue West Extension 2 (350mm)
2050
10
High Park Reservoir Storage Expansion (4500m)
2041
11
West Reservoir outlet
2050
12
Watermain 44 Avenue West of 50 St. (350mm)
2050
13
Watermain Brickyard Drive Connection to 44 Ave (350mm)
2050
14
Watermain Brickyard Drive to West Reservoir (350mm)
2050
15
Watermain 79 Avenue East to Veterans (350mm)
2050
16
Watermain North of 79 Avenue to Tussic (350mm)
2050
17
West Reservoir and Pumphouse
2050
18
East Reservoir Outlet (600mm)
2050
19
Watermain 79 Avenue to East Reservoir (350mm)
2050
20
Watermain West Reservoir to West (500mm)
2050
21
Watermain West Zone north extension (350mm)
2050
22
Watermain Hwy 16A Crossing West Zone North (350mm)
2050
23
Watermain West Zone loop (350mm)
2050
24
East Reservoir and Pumphouse
2050
*The share of projects constructed beyond the 25-year review period are not included in rates today (see
financial oversizing in next section).
**Project costs are inflated by 2% per annum to 2024 and 3% per annum thereafter to the year of construction.
C4. Water Offsite Infrastructure Benefiting Parties
The water offsite infrastructure previously outlined will benefit various parties to varying
degrees. Three potential benefiting parties were identified including:
1. Town of Stony Plain - a portion of the water infrastructure which is required to
service existing residents. This residual benefit is determined at the point in time
when the project is added to the bylaw (i.e., it does not fluctuate from year-to-year).
2. Other Stakeholders - other municipalities that benefit from the infrastructure.
3. Future Development:
o Financial Oversizing - that portion of cost (i.e., levyable water infrastructure
costs) which benefits future development beyond the 25-year review period.
o In Rates - that portion of cost (i.e., levyable water infrastructure costs)
which benefits future development within the 25-year review period.
The table below outlines the allocation of water offsite levy infrastructure costs to benefiting
parties.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
Allocation of Water Infrastructure to Benefiting Parties
Item
Project Description
Reduced Project
Estimated Cost
Muni Share %
Other Stakeholder
Share
Developer Share
Beyond 25 Yrs
(Financial
Oversizing %)
OSL / Developer
Share %
1
79 Ave Golf Course Road to Boundary Road
1,087,719
$
100.00%
2
44 Ave. Waterline
63,147
$
100.00%
3
CRPWSC Fill Line to High Park
3,058,000
$
12.00%
88.00%
4
Watermain Golf Course Road (300mm)
1,582,000
$
12.00%
88.00%
5
Meridian Heights Reservoir Upgrades
884,000
$
20.00%
80.00%
6
Watermain 79 Avenue West Extension 1 (350mm)
630,000
$
36.00%
64.00%
7
Meridian Heights Reservoir Outlet (600mm)
98,400
$
76.00%
24.00%
8
Watermain 43 Avenue Meridian Heights (450mm)
221,600
$
76.00%
24.00%
9
Watermain 79 Avenue West Extension 2 (350mm)
756,000
$
100.00%
0.00%
10
High Park Reservoir Storage Expansion (4500m)
4,500,000
$
80.00%
20.00%
11
West Reservoir outlet
53,700
$
100.00%
0.00%
12
Watermain 44 Avenue West of 50 St. (350mm)
756,000
$
100.00%
0.00%
13
Watermain Brickyard Drive Connection to 44 Ave (350mm)
756,000
$
100.00%
0.00%
14
Watermain Brickyard Drive to West Reservoir (350mm)
1,638,000
$
100.00%
0.00%
15
Watermain 79 Avenue East to Veterans (350mm)
2,066,400
$
100.00%
0.00%
16
Watermain North of 79 Avenue to Tussic (350mm)
289,800
$
100.00%
0.00%
17
West Reservoir and Pumphouse
15,000,000
$
100.00%
0.00%
18
East Reservoir Outlet (600mm)
63,300
$
100.00%
0.00%
19
Watermain 79 Avenue to East Reservoir (350mm)
541,800
$
100.00%
0.00%
20
Watermain West Reservoir to West (500mm)
1,467,800
$
100.00%
0.00%
21
Watermain West Zone north extension (350mm)
296,100
$
100.00%
0.00%
22
Watermain Hwy 16A Crossing West Zone North (350mm)
195,000
$
100.00%
0.00%
23
Watermain West Zone loop (350mm)
8,316,000
$
100.00%
0.00%
24
East Reservoir and Pumphouse
15,000,000
$
100.00%
0.00%
100
Unallocated Offsite Levies Collected to Dec 31, 2020
-
$
100.00%
59,320,766
$
*Allocations were determined by Town staff.
**Financial oversizing is determined by separating out the pro rata portion of developer cost beyond the 25-year
review period, in comparison with the anticipated year of construction. As the years move forward and rates are
updated, these additional developer costs will be included in rate calculations. For example, a project which is
slated to be constructed in year 20 of the 25-year review period will have 20% (5/25) of its costs in rates today,
and 80% (20/25) of its costs will sit beyond the 25-year review period.
C5. Existing Receipts & Adjusted Levy Cost
Using the offsite levy share percentages shown in the previous section and applying those
percentages to project costs results in an offsite levy cost of approximately $7.32 million.
However, prior to allocating these costs to benefiting areas, existing offsite levy receipts
collected from developers need to be considered in determining the residual/net costs to
developers. Town staff have advised that approximately $1.59 million in water levies have
been applied/collected as shown in the table below. This results in an adjusted offsite levy
cost of approximately $5.73 million.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
Offsite Levy Funds Applied to Date
Item
Project Description
OSL / Developer
Cost
Offsite Levy
Funds Collected
to Dec 31, 2020
Offsite Levy
Funds Collected
Starting Jan 1,
2021
Adjusted
Developer (Levy)
Cost
1
79 Ave Golf Course Road to Boundary Road
1,087,719
$
$ -
-
$
1,087,719
$
2
44 Ave. Waterline
63,147
$
$ 59,128
-
$
4,019
$
3
CRPWSC Fill Line to High Park
2,691,040
$
$ -
-
$
2,691,040
$
4
Watermain Golf Course Road (300mm)
1,392,160
$
$ -
-
$
1,392,160
$
5
Meridian Heights Reservoir Upgrades
707,200
$
$ -
-
$
707,200
$
6
Watermain 79 Avenue West Extension 1 (350mm)
403,200
$
$ -
-
$
403,200
$
7
Meridian Heights Reservoir Outlet (600mm)
23,616
$
$ -
-
$
23,616
$
8
Watermain 43 Avenue Meridian Heights (450mm)
53,184
$
$ -
-
$
53,184
$
9
Watermain 79 Avenue West Extension 2 (350mm)
-
$
$ -
-
$
-
$
10
High Park Reservoir Storage Expansion (4500m)
900,000
$
$ -
-
$
900,000
$
11
West Reservoir outlet
-
$
$ -
-
$
-
$
12
Watermain 44 Avenue West of 50 St. (350mm)
-
$
$ -
-
$
-
$
13
Watermain Brickyard Drive Connection to 44 Ave (350mm)
-
$
$ -
-
$
-
$
14
Watermain Brickyard Drive to West Reservoir (350mm)
-
$
$ -
-
$
-
$
15
Watermain 79 Avenue East to Veterans (350mm)
-
$
$ -
-
$
-
$
16
Watermain North of 79 Avenue to Tussic (350mm)
-
$
$ -
-
$
-
$
17
West Reservoir and Pumphouse
-
$
$ -
-
$
-
$
18
East Reservoir Outlet (600mm)
-
$
$ -
-
$
-
$
19
Watermain 79 Avenue to East Reservoir (350mm)
-
$
$ -
-
$
-
$
20
Watermain West Reservoir to West (500mm)
-
$
$ -
-
$
-
$
21
Watermain West Zone north extension (350mm)
-
$
$ -
-
$
-
$
22
Watermain Hwy 16A Crossing West Zone North (350mm)
-
$
$ -
-
$
-
$
23
Watermain West Zone loop (350mm)
-
$
$ -
-
$
-
$
24
East Reservoir and Pumphouse
-
$
$ -
-
$
-
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020
-
$
$ 1,530,664
-
$
(1,530,664)
$
7,321,266
$
1,589,792
$
-
$
5,731,474
$
C6. Summary of Water Offsite Levy Cost Flow-through
As shown in the figure below, the total cost for water infrastructure that forms the basis of
the rate is approximately $5.76 million. The cost allocations to each benefitting party are
based on the benefitting percentages shown in previous section. The offsite levy balance
(due from developers) is allocated to various benefitting areas (as described in the next
section).
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
Total Water Offsite Levy Costs
Project
Costs
$62.20M
Less: Special
Grants &
Contributions
$2.88M
= Project
Balance
$59.32M
Less: Levy
Receipts
$1.59M
= Future
Development
(OSL Share)
$7.32M
= Off-site
Balance
$5.73M
= Other
Share
$0.00M
= Existing
Development
(Muni Share)
$0.00M
= Future
Development
"Financial
Oversizing"
$51.99M
C7. Water Infrastructure Benefiting Areas
Net developer costs for each project have been allocated to multiple benefiting offsite levy
area (see tables below). Allocations are denoted with a "1" below applicable area numbers.
Benefiting areas were determined by Town staff. The lands anticipated to develop over the
25-years in each offsite levy benefitting area are used to determine rates.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
Water Allocations to Benefitting Areas
Item
Project Description
Developer
Cost
1
2
3
4
5
6
7
8
9
10
11
12
1
79 Ave Golf Course Road to Boundary Road
$ 1,087,719
1
1
1
1
1
1
1
1
1
1
1
1
2
44 Ave. Waterline
$ 4,019
1
1
1
1
1
1
1
1
1
1
1
1
3
CRPWSC Fill Line to High Park
$ 2,691,040
1
1
1
1
1
1
1
1
1
1
1
1
4
Watermain Golf Course Road (300mm)
$ 1,392,160
1
1
1
1
1
1
1
1
1
1
1
1
5
Meridian Heights Reservoir Upgrades
$ 707,200
1
1
1
1
1
1
1
1
1
1
1
1
6
Watermain 79 Avenue West Extension 1 (350mm)
$ 403,200
1
1
1
1
1
1
1
1
1
1
1
1
7
Meridian Heights Reservoir Outlet (600mm)
$ 23,616
1
1
1
1
1
1
1
1
1
1
1
1
8
Watermain 43 Avenue Meridian Heights (450mm)
$ 53,184
1
1
1
1
1
1
1
1
1
1
1
1
9
Watermain 79 Avenue West Extension 2 (350mm)
$ -
1
1
1
1
1
1
1
1
1
1
1
1
10
High Park Reservoir Storage Expansion (4500m)
$ 900,000
1
1
1
1
1
1
1
1
1
1
1
1
11
West Reservoir outlet
$ -
1
1
1
1
1
1
1
1
1
1
1
1
12
Watermain 44 Avenue West of 50 St. (350mm)
$ -
1
1
1
1
1
1
1
1
1
1
1
1
13
Watermain Brickyard Drive Connection to 44 Ave
(350mm)
$ -
1
1
1
1
1
1
1
1
1
1
1
1
14
Watermain Brickyard Drive to West Reservoir (350mm)
$ -
1
1
1
1
1
1
1
1
1
1
1
1
15
Watermain 79 Avenue East to Veterans (350mm)
$ -
1
1
1
1
1
1
1
1
1
1
1
1
16
Watermain North of 79 Avenue to Tussic (350mm)
$ -
1
1
1
1
1
1
1
1
1
1
1
1
17
West Reservoir and Pumphouse
$ -
1
1
1
1
1
1
1
1
1
1
1
1
18
East Reservoir Outlet (600mm)
$ -
1
1
1
1
1
1
1
1
1
1
1
1
19
Watermain 79 Avenue to East Reservoir (350mm)
$ -
1
1
1
1
1
1
1
1
1
1
1
1
20
Watermain West Reservoir to West (500mm)
$ -
1
1
1
1
1
1
1
1
1
1
1
1
21
Watermain West Zone north extension (350mm)
$ -
1
1
1
1
1
1
1
1
1
1
1
1
22
Watermain Hwy 16A Crossing West Zone North
(350mm)
$ -
1
1
1
1
1
1
1
1
1
1
1
1
23
Watermain West Zone loop (350mm)
$ -
1
1
1
1
1
1
1
1
1
1
1
1
24
East Reservoir and Pumphouse
$ -
1
1
1
1
1
1
1
1
1
1
1
1
100 Unallocated Offsite Levies Collected to Dec 31, 2020
$ (1,530,664)
1
1
1
1
1
1
1
1
1
1
1
1
5,731,474
$
C8. Account Balance
At December 31st, 2020 the water account balance was in a surplus of $438,925.77. This
amount takes into consideration expenditures and front-ending obligations up to end-2020.
This balance also assumes that funds of $1,091,738 currently in the account are transferred
to the Town to pay down front-ending obligations owed to the Town.
Water Offsite Levy Reserve Balance
Description
Dr
Cr
Balance
Opening Balance at Jan 1, 2008
515,185.97
$
OSL Receipts 2008-2020
788,688.58
$
1,303,874.55
$
Withdrawals/Applied to OSL Projects (2008-2020)
59,129.59
$
1,244,744.96
$
Interest Earned (Charged) 2008-2020
285,918.81
$
1,530,663.77
$
Closing Balance at Dec 31, 2020 Not Including OSL Share
of Net Expenditures and Front-ending Repayments
1,530,663.77
$
Net Project Expenditures (OSL Share) In Addition to
Withdrawals Applied to Projects (2008-2020)
1,091,738.00
$
438,925.77
$
Closing Balance at Dec 31, 2020 (After Repayment of Front-ending)
438,925.77
$
C9. Development and Water Infrastructure Staging Impacts
Water offsite infrastructure will be constructed in staged fashion over the 25-year review
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
period. We have reviewed the availability of offsite levy funds to meet these construction
requirements and found that offsite levy account 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.
To compensate parties for capital they provide in front-ending offsite infrastructure
construction, a 2.09%9 interest allowance has been charged to the account when it is
forecast to be in a negative balance. Further, a 1.00% interest credit has been provided to
the account when it is forecast to be in a positive balance. The graph and table below
outline the forecast water levy account balances over the 25-year development period.
If necessary, an interest staging adjustment has been applied to rates (slightly positive or
slightly negative) to ensure that the forecast account balance at the end of the 25-year
review period always returns to break-even (i.e., developers are not charged too much
thereby providing a windfall to the Town, nor are they charged too little thereby placing an
unequitable burden on taxpayers).
Anticipated Water Offsite Levy Account Balances
$(4,000,000)
$(3,000,000)
$(2,000,000)
$(1,000,000)
$-
$1,000,000
$2,000,000
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
$
Year
Water Reserve
Reserve Balance
9 The 20-year debenture rate at the Alberta Capital Finance Authority at the time of writing was ~2.09%.
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
Anticipated Water Offsite Levy Account Balances
Opening Balance
438,926
$
Year
Receipts
Expenditure
Interest
Balance
2021
247,061
$
-
$
6,860
$
692,847
$
2022
252,002
$
-
$
9,448
$
954,297
$
2023
257,042
$
-
$
12,113
$
1,223,453
$
2024
262,183
$
4,333,125
$
(59,513)
$
(2,907,001)
$
2025
270,049
$
-
$
(55,112)
$
(2,692,065)
$
2026
266,834
$
796,191
$
(67,328)
$
(3,288,749)
$
2027
274,839
$
-
$
(62,991)
$
(3,076,900)
$
2028
283,085
$
-
$
(58,391)
$
(2,852,207)
$
2029
291,577
$
-
$
(53,517)
$
(2,614,147)
$
2030
300,302
$
510,910
$
(59,037)
$
(2,883,792)
$
2031
267,708
$
-
$
(54,676)
$
(2,670,760)
$
2032
275,740
$
-
$
(50,056)
$
(2,445,076)
$
2033
284,012
$
-
$
(45,166)
$
(2,206,230)
$
2034
292,532
$
-
$
(39,996)
$
(1,953,694)
$
2035
301,308
$
-
$
(34,535)
$
(1,686,921)
$
2036
310,347
$
-
$
(28,770)
$
(1,405,344)
$
2037
319,658
$
-
$
(22,691)
$
(1,108,377)
$
2038
329,248
$
-
$
(16,284)
$
(795,413)
$
2039
339,125
$
-
$
(9,536)
$
(465,824)
$
2040
349,299
$
130,785
$
(5,169)
$
(252,479)
$
2041
359,778
$
1,578,614
$
(30,750)
$
(1,502,066)
$
2042
370,571
$
-
$
(23,648)
$
(1,155,143)
$
2043
381,646
$
-
$
(16,166)
$
(789,663)
$
2044
393,019
$
-
$
(8,290)
$
(404,933)
$
2045
404,933
$
-
$
0
$
0
$
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
APPENDIX D: SANITARY SEWER
D1. Sanitary Sewer Offsite Infrastructure
In order to support future growth, sanitary sewer offsite infrastructure is required. The
estimated cost of this infrastructure is based upon: (a) actual construction costs to the cut-off
date, (b) debenture interest associated with financing, and (c) future cost estimates. Total
cost is approximately $32.26 million as outlined in the table and map below. It is important
to note that these costs represent "gross" costs, of which only a portion will go to support
development during the 25-year review period. The remainder of this section outlines how
the "net" costs for development are determined.
Summary of Sanitary Sewer Offsite Infrastructure
Item
Project Description
Cost of
Completed Work
Future Debenture
Interest
Estimated Cost of
Work Yet to be
Completed
Total Project
Estimated Cost
1
West Trunk
$ 5,486,889
-
$
-
$
5,486,889
$
2
South Creek Phase 1, 2A and 2B 900mm Trunk
$ 1,290,063
-
$
448,189
$
1,738,252
$
3
Central Trunk Super Pipe (1500mm)
$ -
-
$
3,213,000
$
3,213,000
$
4
East of Veterans Sanitary Trunk 1 (525mm)
$ -
-
$
792,000
$
792,000
$
5
East of Veterans Sanitary Trunk 2A (525mm)
$ -
-
$
550,000
$
550,000
$
6
East of Veterans Sanitary Trunk 2B (525mm)
$ -
-
$
885,500
$
885,500
$
7
Northeast Sanitary Trunk 2 (450mm)
$ -
-
$
314,150
$
314,150
$
8
Northeast Sanitary Trunk 1 (525mm)
$ -
-
$
1,100,000
$
1,100,000
$
9
Edgelands Sanitary Trunk (750mm)
$ -
-
$
973,000
$
973,000
$
10
Southcreek Sanitary Trunk 2 (900mm)
$ -
-
$
651,750
$
651,750
$
11
Tussic Sanitary Trunk (750mm)
$ -
-
$
1,132,850
$
1,132,850
$
12
Deerfield Sanitary Trunk (900mm)
$ -
-
$
2,211,000
$
2,211,000
$
13
North Business Park Permanent Liftstation
$ -
-
$
1,182,000
$
1,182,000
$
14
Deerfield South Trunk (525mm)
$ -
-
$
412,500
$
412,500
$
15
Southwest Deerfield Trunk (900mm)
$ -
-
$
561,000
$
561,000
$
16
Northwest Trunk (525mm)
$ -
-
$
1,221,000
$
1,221,000
$
17
Northwest Glory Hills Road Trunk (375mm)
$ -
-
$
767,250
$
767,250
$
18
Northwest Industrial Trunk (450mm)
$ -
-
$
195,700
$
195,700
$
19
Parkland Gateway Trunk (450mm)
$ -
-
$
597,400
$
597,400
$
20
Parkland Gateway Trunk (525mm)
$ -
-
$
902,000
$
902,000
$
21
Deerfield west Trunk (750mm)
$ -
-
$
1,362,200
$
1,362,200
$
22
South of Lake Westerra Trunk (375mm)
$ -
-
$
509,850
$
509,850
$
23
South of Country Plains Trunk (375mm)
$ -
-
$
371,250
$
371,250
$
24
South of Country Plains Trunk (450mm)
$ -
-
$
906,400
$
906,400
$
25
Tussic to South of 79 Ave Trunk (750mm)
$ -
-
$
2,015,500
$
2,015,500
$
26
South of Edgeland Park Trunk (375mm)
$ -
-
$
386,100
$
386,100
$
27
Edgeland Park west of Veterans Trunk (600mm)
$ -
-
$
1,820,000
$
1,820,000
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020
$ -
-
$
-
$
-
$
6,776,952
$
-
$
25,481,589
$
32,258,541
$
*Costs estimates provided by Town staff.
**Estimates include engineering, contingencies, and land costs if any.
***Historical financing charges (if any) are included in the cost of completed work.
****Unallocated levies to end-2020 were set-up as an individual project (#100) and credited 100% to future
development and to all offsite levy areas.
*****Offsite infrastructure definitions are contained in Appendix F.
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CORVUS Business Advisors
Location of Sanitary Sewer Offsite Infrastructure
D2. Sanitary Sewer Offsite Infrastructure Grants & Contributions to Date
The MGA enables the Town to allocate the costs of offsite infrastructure to development,
other than those costs that have been provided by way of special ear-marked grant or
contribution (i.e., contributed infrastructure). Town of Stony Plain has/will receive
approximately $3.14 million in special ear-marked grants and contributions for sanitary
sewer offsite levy infrastructure as shown in the table below (note, if the Town receives
additional ear-marked grants or contributions in the future, it will be reflected in one of the
annual updates and rates adjusted accordingly). The result is that the total reduced project
estimated cost is $29.12 million.
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
Special Grants and Contributions for Sanitary Sewer Offsite Infrastructure
Item
Project Description
Total Project
Estimated Cost
Special Provincial
Grants (Historic &
Future)
Developer
Agreement
Contributions
(Historic &
Future)
Other
Contributions
(Historic &
Future)
Reduced Project
Estimated Cost
1
West Trunk
5,486,889
$
3,139,646
$
-
$
$ -
2,347,243
$
2
South Creek Phase 1, 2A and 2B 900mm Trunk
1,738,252
$
-
$
-
$
$ -
1,738,252
$
3
Central Trunk Super Pipe (1500mm)
3,213,000
$
-
$
-
$
$ -
3,213,000
$
4
East of Veterans Sanitary Trunk 1 (525mm)
792,000
$
-
$
-
$
$ -
792,000
$
5
East of Veterans Sanitary Trunk 2A (525mm)
550,000
$
-
$
-
$
$ -
550,000
$
6
East of Veterans Sanitary Trunk 2B (525mm)
885,500
$
-
$
-
$
$ -
885,500
$
7
Northeast Sanitary Trunk 2 (450mm)
314,150
$
-
$
-
$
$ -
314,150
$
8
Northeast Sanitary Trunk 1 (525mm)
1,100,000
$
-
$
-
$
$ -
1,100,000
$
9
Edgelands Sanitary Trunk (750mm)
973,000
$
-
$
-
$
$ -
973,000
$
10
Southcreek Sanitary Trunk 2 (900mm)
651,750
$
-
$
-
$
$ -
651,750
$
11
Tussic Sanitary Trunk (750mm)
1,132,850
$
-
$
-
$
$ -
1,132,850
$
12
Deerfield Sanitary Trunk (900mm)
2,211,000
$
-
$
-
$
$ -
2,211,000
$
13
North Business Park Permanent Liftstation
1,182,000
$
-
$
-
$
$ -
1,182,000
$
14
Deerfield South Trunk (525mm)
412,500
$
-
$
-
$
$ -
412,500
$
15
Southwest Deerfield Trunk (900mm)
561,000
$
-
$
-
$
$ -
561,000
$
16
Northwest Trunk (525mm)
1,221,000
$
-
$
-
$
$ -
1,221,000
$
17
Northwest Glory Hills Road Trunk (375mm)
767,250
$
-
$
-
$
$ -
767,250
$
18
Northwest Industrial Trunk (450mm)
195,700
$
-
$
-
$
$ -
195,700
$
19
Parkland Gateway Trunk (450mm)
597,400
$
-
$
-
$
$ -
597,400
$
20
Parkland Gateway Trunk (525mm)
902,000
$
-
$
-
$
$ -
902,000
$
21
Deerfield west Trunk (750mm)
1,362,200
$
-
$
-
$
$ -
1,362,200
$
22
South of Lake Westerra Trunk (375mm)
509,850
$
-
$
-
$
$ -
509,850
$
23
South of Country Plains Trunk (375mm)
371,250
$
-
$
-
$
$ -
371,250
$
24
South of Country Plains Trunk (450mm)
906,400
$
-
$
-
$
$ -
906,400
$
25
Tussic to South of 79 Ave Trunk (750mm)
2,015,500
$
-
$
-
$
$ -
2,015,500
$
26
South of Edgeland Park Trunk (375mm)
386,100
$
-
$
-
$
$ -
386,100
$
27
Edgeland Park west of Veterans Trunk (600mm)
1,820,000
$
-
$
-
$
$ -
1,820,000
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020
-
$
-
$
-
$
$ -
-
$
32,258,541
$
3,139,646
$
-
$
-
$
29,118,895
$
D3. Year of Construction
The timing of construction is used to determine the impact of inflation on cost, the impact of
forecast account balances, and the estimate of financial oversizing (described in the
Section that follows). The Town anticipates construction of offsite infrastructure as outlined
in the table below. Note, if this schedule is adjusted in the future, it will be reflected in one of
the Town's annual rate/bylaw updates.
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CORVUS Business Advisors
Forecast Year of Construction
Item
Project Description
Construction
Start Year
1
West Trunk
2008
2
South Creek Phase 1, 2A and 2B 900mm Trunk
2017
3
Central Trunk Super Pipe (1500mm)
2023
4
East of Veterans Sanitary Trunk 1 (525mm)
2024
5
East of Veterans Sanitary Trunk 2A (525mm)
2030
6
East of Veterans Sanitary Trunk 2B (525mm)
2041
7
Northeast Sanitary Trunk 2 (450mm)
2040
8
Northeast Sanitary Trunk 1 (525mm)
2040
9
Edgelands Sanitary Trunk (750mm)
2026
10
Southcreek Sanitary Trunk 2 (900mm)
2026
11
Tussic Sanitary Trunk (750mm)
2045
12
Deerfield Sanitary Trunk (900mm)
2050
13
North Business Park Permanent Liftstation
2023
14
Deerfield South Trunk (525mm)
2050
15
Southwest Deerfield Trunk (900mm)
2050
16
Northwest Trunk (525mm)
2050
17
Northwest Glory Hills Road Trunk (375mm)
2050
18
Northwest Industrial Trunk (450mm)
2050
19
Parkland Gateway Trunk (450mm)
2050
20
Parkland Gateway Trunk (525mm)
2050
21
Deerfield west Trunk (750mm)
2050
22
South of Lake Westerra Trunk (375mm)
2050
23
South of Country Plains Trunk (375mm)
2050
24
South of Country Plains Trunk (450mm)
2050
25
Tussic to South of 79 Ave Trunk (750mm)
2050
26
South of Edgeland Park Trunk (375mm)
2050
27
Edgeland Park west of Veterans Trunk (600mm)
2050
*The share of projects constructed beyond the 25-year review period are not included in rates today (see
financial oversizing in next section).
**Project costs are inflated by 2% per annum to 2024 and 3% per annum thereafter to the year of construction.
D4. Sanitary Sewer Offsite Infrastructure Benefiting Parties
The sanitary sewer offsite infrastructure previously outlined will benefit various parties to
varying degrees. Three potential benefiting parties were identified including:
1. Town of Stony Plain - a portion of the sanitary sewer infrastructure which is required
to service existing residents. This residual benefit is determined at the point in time
when the project is added to the bylaw (i.e., it does not fluctuate from year-to-year).
2. Other Stakeholders - other municipalities that benefit from the infrastructure.
3. Future Development:
o Financial Oversizing - that portion of cost (i.e., levyable sanitary sewer
infrastructure costs) which benefits future development beyond the 25-year
review period.
o In Rates - that portion of cost (i.e., levyable sanitary sewer
infrastructure costs) which benefits future development within the 25-
year review period.
The table below outlines the allocation of sanitary sewer offsite levy infrastructure costs to
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
benefiting parties.
Allocation of Sanitary Sewer Infrastructure to Benefiting Parties
Item
Project Description
Reduced Project
Estimated Cost
Muni Share %
Other Stakeholder
Share
Developer Share
Beyond 25 Yrs
(Financial
Oversizing %)
OSL / Developer
Share %
1
West Trunk
2,347,243
$
0.00%
100.00%
2
South Creek Phase 1, 2A and 2B 900mm Trunk
1,738,252
$
0.00%
100.00%
3
Central Trunk Super Pipe (1500mm)
3,213,000
$
90.54%
9.46%
4
East of Veterans Sanitary Trunk 1 (525mm)
792,000
$
100.00%
5
East of Veterans Sanitary Trunk 2A (525mm)
550,000
$
100.00%
6
East of Veterans Sanitary Trunk 2B (525mm)
885,500
$
100.00%
7
Northeast Sanitary Trunk 2 (450mm)
314,150
$
100.00%
8
Northeast Sanitary Trunk 1 (525mm)
1,100,000
$
100.00%
9
Edgelands Sanitary Trunk (750mm)
973,000
$
20.00%
80.00%
10
Southcreek Sanitary Trunk 2 (900mm)
651,750
$
20.00%
80.00%
11
Tussic Sanitary Trunk (750mm)
1,132,850
$
96.00%
4.00%
12
Deerfield Sanitary Trunk (900mm)
2,211,000
$
100.00%
0.00%
13
North Business Park Permanent Liftstation
1,182,000
$
70.33%
29.67%
14
Deerfield South Trunk (525mm)
412,500
$
100.00%
0.00%
15
Southwest Deerfield Trunk (900mm)
561,000
$
100.00%
0.00%
16
Northwest Trunk (525mm)
1,221,000
$
100.00%
0.00%
17
Northwest Glory Hills Road Trunk (375mm)
767,250
$
100.00%
0.00%
18
Northwest Industrial Trunk (450mm)
195,700
$
100.00%
0.00%
19
Parkland Gateway Trunk (450mm)
597,400
$
100.00%
0.00%
20
Parkland Gateway Trunk (525mm)
902,000
$
100.00%
0.00%
21
Deerfield west Trunk (750mm)
1,362,200
$
100.00%
0.00%
22
South of Lake Westerra Trunk (375mm)
509,850
$
100.00%
0.00%
23
South of Country Plains Trunk (375mm)
371,250
$
100.00%
0.00%
24
South of Country Plains Trunk (450mm)
906,400
$
100.00%
0.00%
25
Tussic to South of 79 Ave Trunk (750mm)
2,015,500
$
100.00%
0.00%
26
South of Edgeland Park Trunk (375mm)
386,100
$
100.00%
0.00%
27
Edgeland Park west of Veterans Trunk (600mm)
1,820,000
$
100.00%
0.00%
100
Unallocated Offsite Levies Collected to Dec 31, 2020
-
$
100.00%
29,118,895
$
*Allocations were determined by Town staff.
**Financial oversizing is determined by separating out the pro rata portion of developer cost beyond the 25-year
review period, in comparison with the anticipated year of construction. As the years move forward and rates are
updated, these additional developer costs will be included in rate calculations. For example, a project which is
slated to be constructed in year 20 of the 25-year review period will have 20% (5/25) of its costs in rates today,
and 80% (20/25) of its costs will sit beyond the 25-year review period.
***Financial oversizing for Projects 3,4,5,6,7,8,and 13 was removed as these projects are allocated to offsite levy
areas which have no lands developing beyond the 25-year review period.
D5. Existing Receipts & Adjusted Levy Cost
Using the offsite levy share percentages shown in the previous section and applying those
percentages to project costs results in an offsite levy cost of approximately $9.73 million.
However, prior to allocating these costs to benefiting areas, existing offsite levy receipts
collected from developers need to be considered in determining the residual/net costs to
developers. Town staff have advised that approximately $4.66 million in sanitary sewer
levies have been applied/collected as shown in the table below. This results in an adjusted
offsite levy cost of approximately $5.07 million.
Town of Stony Plain 2021 Offsite Levy Update
April 2nd, 2021
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CORVUS Business Advisors
Offsite Levy Funds Applied to Date
Item
Project Description
OSL / Developer
Cost
Offsite Levy
Funds Collected
to Dec 31, 2020
Offsite Levy
Funds Collected
Starting Jan 1,
2021
Adjusted
Developer (Levy)
Cost
1
West Trunk
2,347,243
$
2,347,243
$
-
$
-
$
2
South Creek Phase 1, 2A and 2B 900mm Trunk
1,738,252
$
1,290,063
$
-
$
448,189
$
3
Central Trunk Super Pipe (1500mm)
303,950
$
-
$
-
$
303,950
$
4
East of Veterans Sanitary Trunk 1 (525mm)
792,000
$
-
$
-
$
792,000
$
5
East of Veterans Sanitary Trunk 2A (525mm)
550,000
$
-
$
-
$
550,000
$
6
East of Veterans Sanitary Trunk 2B (525mm)
885,500
$
-
$
-
$
885,500
$
7
Northeast Sanitary Trunk 2 (450mm)
314,150
$
-
$
-
$
314,150
$
8
Northeast Sanitary Trunk 1 (525mm)
1,100,000
$
-
$
-
$
1,100,000
$
9
Edgelands Sanitary Trunk (750mm)
778,400
$
-
$
-
$
778,400
$
10
Southcreek Sanitary Trunk 2 (900mm)
521,400
$
-
$
-
$
521,400
$
11
Tussic Sanitary Trunk (750mm)
45,314
$
-
$
-
$
45,314
$
12
Deerfield Sanitary Trunk (900mm)
-
$
-
$
-
$
-
$
13
North Business Park Permanent Liftstation
350,699
$
-
$
-
$
350,699
$
14
Deerfield South Trunk (525mm)
-
$
-
$
-
$
-
$
15
Southwest Deerfield Trunk (900mm)
-
$
-
$
-
$
-
$
16
Northwest Trunk (525mm)
-
$
-
$
-
$
-
$
17
Northwest Glory Hills Road Trunk (375mm)
-
$
-
$
-
$
-
$
18
Northwest Industrial Trunk (450mm)
-
$
-
$
-
$
-
$
19
Parkland Gateway Trunk (450mm)
-
$
-
$
-
$
-
$
20
Parkland Gateway Trunk (525mm)
-
$
-
$
-
$
-
$
21
Deerfield west Trunk (750mm)
-
$
-
$
-
$
-
$
22
South of Lake Westerra Trunk (375mm)
-
$
-
$
-
$
-
$
23
South of Country Plains Trunk (375mm)
-
$
-
$
-
$
-
$
24
South of Country Plains Trunk (450mm)
-
$
-
$
-
$
-
$
25
Tussic to South of 79 Ave Trunk (750mm)
-
$
-
$
-
$
-
$
26
South of Edgeland Park Trunk (375mm)
-
$
-
$
-
$
-
$
27
Edgeland Park west of Veterans Trunk (600mm)
-
$
-
$
-
$
-
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020
-
$
1,021,390
$
-
$
(1,021,390)
$
9,726,908
$
4,658,696
$
-
$
5,068,212
$
D6. Summary of Sanitary Sewer Offsite Levy Cost Flow-through
As shown in the figure below, the total costs for sanitary sewer infrastructure that forms the
basis of the rate is approximately $5.07 million. The cost allocations to each benefitting
party are based on the benefitting percentages shown in the previous section. The offsite
levy balance (due from developers) is allocated to various benefitting areas (as described in
the next section).
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CORVUS Business Advisors
Total Sanitary Sewer Offsite Levy Costs
Project
Costs
$32.26M
Less: Special
Grants &
Contributions
$3.14M
= Project
Balance
$29.12M
Less: Levy
Receipts
$4.66M
= Future
Development
(OSL Share)
$9.73M
= Off-site
Balance
$5.07M
= Other
Share
$0.00M
= Existing
Development
(Muni Share)
$3.74M
= Future
Development
"Financial
Oversizing"
$15.65M
D7. Sanitary Sewer Infrastructure Benefiting Areas
Net developer costs for each project have been allocated to multiple benefiting offsite levy
area (see tables below). Allocations are denoted with a "1" below applicable area numbers.
Benefiting areas were determined by Town staff. The lands anticipated to develop over the
25-years in each offsite levy benefitting area are used to determine rates.
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
Sanitary Sewer Allocations to Benefitting Areas
Item
Project Description
Developer
Cost
1
2
3
4
5
6
7
8
9
10
11
12
1
West Trunk
$ -
1
1
2
South Creek Phase 1, 2A and 2B 900mm Trunk
$ 448,189
1
3
Central Trunk Super Pipe (1500mm)
$ 303,950
1
1
4
East of Veterans Sanitary Trunk 1 (525mm)
$ 792,000
1
5
East of Veterans Sanitary Trunk 2A (525mm)
$ 550,000
1
6
East of Veterans Sanitary Trunk 2B (525mm)
$ 885,500
1
7
Northeast Sanitary Trunk 2 (450mm)
$ 314,150
1
8
Northeast Sanitary Trunk 1 (525mm)
$ 1,100,000
1
9
Edgelands Sanitary Trunk (750mm)
$ 778,400
1
10
Southcreek Sanitary Trunk 2 (900mm)
$ 521,400
1
11
Tussic Sanitary Trunk (750mm)
$ 45,314
1
12
Deerfield Sanitary Trunk (900mm)
$ -
1
13
North Business Park Permanent Liftstation
$ 350,699
1
14
Deerfield South Trunk (525mm)
$ -
1
15
Southwest Deerfield Trunk (900mm)
$ -
1
16
Northwest Trunk (525mm)
$ -
1
1
17
Northwest Glory Hills Road Trunk (375mm)
$ -
1
18
Northwest Industrial Trunk (450mm)
$ -
1
19
Parkland Gateway Trunk (450mm)
$ -
1
20
Parkland Gateway Trunk (525mm)
$ -
1
21
Deerfield west Trunk (750mm)
$ -
1
22
South of Lake Westerra Trunk (375mm)
$ -
1
23
South of Country Plains Trunk (375mm)
$ -
1
24
South of Country Plains Trunk (450mm)
$ -
1
25
Tussic to South of 79 Ave Trunk (750mm)
$ -
1
26
South of Edgeland Park Trunk (375mm)
$ -
1
27
Edgeland Park west of Veterans Trunk (600mm)
$ -
1
100 Unallocated Offsite Levies Collected to Dec 31, 2020
$ (1,021,390)
1
1
1
1
1
1
1
1
1
1
1
1
5,068,212
$
D8. Account Balance
At December 31st, 2020 the sanitary sewer account balance was in a surplus of
$1,021,390.33. This amount takes into consideration expenditures and front-ending
obligations up to end-2020.
Sanitary Sewer Offsite Levy Reserve Balance
Description
Dr
Cr
Balance
Opening Balance at Jan 1, 2008
2,433,957.05
$
OSL Receipts 2008-2020
1,764,174.37
$
4,198,131.42
$
Withdrawals/Applied to OSL Projects (2008-2020)
3,637,309.20
$
560,822.22
$
Interest Earned (Charged) 2008-2020
460,568.11
$
1,021,390.33
$
Closing Balance at Dec 31, 2020 Not Including OSL Share
of Net Expenditures and Front-ending Repayments
1,021,390.33
$
Net Project Expenditures (OSL Share) In Addition to
Withdrawals Applied to Projects (2008-2020)
-
$
1,021,390.33
$
Closing Balance at Dec 31, 2020
1,021,390.33
$
D9. Development and Sanitary Sewer Infrastructure Staging Impacts
Sanitary sewer offsite infrastructure will be constructed in staged fashion over the 25-year
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
development period. We have reviewed the availability of offsite levy funds to meet these
construction requirements and found that offsite levy account funds will not be sufficient to
pay for construction of sanitary sewer 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.
To compensate parties for capital they provide in front-ending offsite infrastructure
construction, a 2.09%10 interest allowance has been charged to the account when it is
forecast to be in a negative balance. Further, a 1.00% interest credit has been provided to
the account when it is forecast to be in a positive balance. The graph and table below
outline the forecast water levy account balances over the 25-year development period.
If necessary, an interest staging adjustment has been applied to rates (slightly positive or
slightly negative) to ensure that the forecast account balance at the end of the 25-year
review period always returns to break-even (i.e., developers are not charged too much
thereby providing a windfall to the Town, nor are they charged too little thereby placing an
unequitable burden on taxpayers).
Anticipated Sanitary Sewer Offsite Levy Account Balances
$(2,000,000)
$(1,500,000)
$(1,000,000)
$(500,000)
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
2021
2024
2027
2030
2033
2036
2039
2042
2045
$
Year
Sanitary Reserve
Reserve
Balance
10 The 20-year debenture rate at the Alberta Capital Finance Authority at the time of writing was ~2.09%.
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
Anticipated Sanitary Sewer Offsite Levy Account Balances
Opening Balance
1,021,390
$
Year
Receipts
Expenditure
Interest
Balance
2021
71,381
$
-
$
10,928
$
1,103,699
$
2022
72,809
$
-
$
11,765
$
1,188,274
$
2023
74,265
$
681,097
$
5,814
$
587,256
$
2024
75,751
$
840,477
$
(3,709)
$
(181,179)
$
2025
78,023
$
-
$
(2,156)
$
(105,312)
$
2026
176,251
$
1,463,361
$
(29,102)
$
(1,421,524)
$
2027
181,539
$
-
$
(25,916)
$
(1,265,901)
$
2028
186,985
$
-
$
(22,549)
$
(1,101,465)
$
2029
192,594
$
-
$
(18,995)
$
(927,866)
$
2030
198,372
$
696,926
$
(29,812)
$
(1,456,232)
$
2031
301,969
$
-
$
(24,124)
$
(1,178,388)
$
2032
311,028
$
-
$
(18,128)
$
(885,488)
$
2033
320,358
$
-
$
(11,811)
$
(576,941)
$
2034
329,969
$
-
$
(5,162)
$
(252,133)
$
2035
339,868
$
-
$
877
$
88,612
$
2036
350,064
$
-
$
4,387
$
443,063
$
2037
360,566
$
-
$
8,036
$
811,666
$
2038
371,383
$
-
$
11,830
$
1,194,880
$
2039
382,525
$
-
$
15,774
$
1,593,178
$
2040
394,000
$
2,408,195
$
(8,799)
$
(429,815)
$
2041
405,820
$
1,553,180
$
(32,963)
$
(1,610,138)
$
2042
417,995
$
-
$
(24,916)
$
(1,217,059)
$
2043
430,466
$
-
$
(16,440)
$
(803,032)
$
2044
443,254
$
-
$
(7,519)
$
(367,297)
$
2045
456,755
$
89,457
$
-
$
(0)
$
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
APPENDIX E: RECREATION
E1. Recreation Offsite Infrastructure
In order to support future growth, recreation offsite infrastructure is required. The estimated
cost of this infrastructure is based upon: (a) actual construction costs to the cut-off date, (b)
debenture interest associated with financing, and (c) future cost estimates. Total cost is
approximately $93.00 million as outlined in the table and map below. It is important to note
that these costs represent "gross" costs, of which only a portion will go to support
development during the 25-year review period. The remainder of this section outlines how
the "net" costs for development are determined.
Summary of Recreation Offsite Infrastructure
Item
Project Description
Cost of
Completed Work
Future Debenture
Interest
Estimated Cost of
Work Yet to be
Completed
Total Project
Estimated Cost
1
Recreational Facility - Phase 1 - Fieldhouse
$ -
-
$
25,500,000
$
25,500,000
$
2
Recreational Facility - Phase 2 - Aquatics
$ -
-
$
35,500,000
$
35,500,000
$
3
Recreational Facility - Phase 3 - Arena
$ -
-
$
32,000,000
$
32,000,000
$
100 Unallocated Offsite Levies Collected to Dec 31, 2020
$ -
-
$
-
$
-
$
-
$
-
$
93,000,000
$
93,000,000
$
*Costs estimates provided by Town staff.
**Estimates include engineering, contingencies, and land costs if any.
***Historical financing charges (if any) are included in the cost of completed work.
****Unallocated levies to end-2020 were set-up as an individual project (#100) and credited 100% to future
development and to all offsite levy areas.
*****Offsite infrastructure definitions are contained in Appendix F.
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CORVUS Business Advisors
Location of Recreation Offsite Infrastructure
E2. Recreation Offsite Infrastructure Grants & Contributions to Date
The MGA enables the Town to allocate the costs of offsite infrastructure to development,
other than those costs that have been provided by way of special ear-marked grant or
contribution (i.e., contributed infrastructure). Town of Stony Plain has/will receive
approximately $46.88 million in special ear-marked grants and contributions for recreation
offsite levy infrastructure as shown in the table below (note, if the Town receives other ear-
marked grants or contributions in the future, it will be reflected in one of the annual updates
and rates adjusted accordingly). The result is that the total reduced project estimated cost is
$46.13 million.
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CORVUS Business Advisors
Special Grants and Contributions for Recreation Offsite Infrastructure
Item
Project Description
Total Project
Estimated Cost
Special Provincial
Grants (Historic &
Future)
Developer
Agreement
Contributions
(Historic &
Future)
Other
Contributions
(Historic &
Future)
Reduced Project
Estimated Cost
1
Recreational Facility - Phase 1 - Fieldhouse
25,500,000
$
10,000,000
$
2,500,000
$
$ -
13,000,000
$
2
Recreational Facility - Phase 2 - Aquatics
35,500,000
$
15,975,000
$
2,000,000
$
$ -
17,525,000
$
3
Recreational Facility - Phase 3 - Arena
32,000,000
$
14,400,000
$
2,000,000
$
$ -
15,600,000
$
100 Unallocated Offsite Levies Collected to Dec 31, 2020
-
$
-
$
-
$
$ -
-
$
93,000,000
$
40,375,000
$
6,500,000
$
-
$
46,125,000
$
E3. Year of Construction
The timing of construction is used to determine the impact of inflation on cost, the impact of
forecast account balances, and the estimate of financial oversizing (described in the
Section that follows). The Town anticipates construction of offsite infrastructure as outlined
in the table below. Note, if this schedule is adjusted in the future, it will be reflected in one of
the Town's annual rate/bylaw updates.
Forecast Year of Construction
Item
Project Description
Construction
Start Year
1
Recreational Facility - Phase 1 - Fieldhouse
2021
2
Recreational Facility - Phase 2 - Aquatics
2034
3
Recreational Facility - Phase 3 - Arena
2045
*The share of projects constructed beyond the 25-year review period are not included in rates today (see
financial oversizing in next section).
**Project costs are inflated by 2% per annum to 2024 and 3% per annum thereafter to the year of construction.
E4. Recreation Offsite Infrastructure Benefiting Parties
The recreation offsite infrastructure previously outlined will benefit various parties to varying
degrees. Three potential benefiting parties were identified including:
1. Town of Stony Plain - a portion of the recreation infrastructure which is required to
service existing residents. This residual benefit is determined at the point in time
when the project is added to the bylaw (i.e., it does not fluctuate from year-to-year).
2. Other Stakeholders - other municipalities that benefit from the infrastructure.
3. Future Development:
o Financial Oversizing - that portion of cost (i.e., levyable recreation
infrastructure costs) which benefits future development beyond the 25-year
review period.
o In Rates - that portion of cost (i.e., levyable recreation infrastructure
costs) which benefits future development within the 25-year review
period.
The table below outlines the allocation of recreation offsite levy infrastructure costs to
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
benefiting parties.
Allocation of Recreation Infrastructure to Benefiting Parties
Item
Project Description
Reduced Project
Estimated Cost
Muni Share %
Other Stakeholder
Share
Developer Share
Beyond 25 Yrs
(Financial
Oversizing %)
OSL / Developer
Share %
1
Recreational Facility - Phase 1 - Fieldhouse
13,000,000
$
64.52%
0.00%
35.48%
2
Recreational Facility - Phase 2 - Aquatics
17,525,000
$
64.52%
18.45%
17.03%
3
Recreational Facility - Phase 3 - Arena
15,600,000
$
64.52%
34.06%
1.42%
100 Unallocated Offsite Levies Collected to Dec 31, 2020
-
$
100.00%
46,125,000
$
*Allocations were determined by Town staff.
**Financial oversizing is determined by separating out the pro rata portion of developer cost beyond the 25-year
review period, in comparison with the anticipated year of construction. As the years move forward and rates are
updated, these additional developer costs will be included in rate calculations. For example, a project which is
slated to be constructed in year 20 of the 25-year review period will have 20% (5/25) of its costs in rates today,
and 80% (20/25) of its costs will sit beyond the 25-year review period.
E5. Existing Receipts & Adjusted Levy Cost
Using the offsite levy share percentages shown in the previous section and applying those
percentages to project costs results in an offsite levy cost of $7.82. However, prior to
allocating these costs to benefiting areas, existing offsite levy receipts collected from
developers need to be considered in determining the residual/net costs to developers. Town
staff have advised that $0.73 million in recreation levies have been applied/collected as
shown in the table below. This results in an adjusted offsite levy cost of $7.09 million.
Offsite Levy Funds Applied to Date
Item
Project Description
OSL / Developer
Cost
Offsite Levy
Funds Collected
to Dec 31, 2020
Offsite Levy
Funds Collected
Starting Jan 1,
2021
Adjusted
Developer (Levy)
Cost
1
Recreational Facility - Phase 1 - Fieldhouse
4,612,400
$
-
$
-
$
4,612,400
$
2
Recreational Facility - Phase 2 - Aquatics
2,984,578
$
-
$
-
$
2,984,578
$
3
Recreational Facility - Phase 3 - Arena
221,395
$
-
$
-
$
221,395
$
100 Unallocated Offsite Levies Collected to Dec 31, 2020
-
$
729,465
$
-
$
(729,465)
$
7,818,373
$
729,465
$
-
$
7,088,908
$
E6. Summary of Recreation Offsite Levy Cost Flow-through
As shown in the figure below, the total cost for recreation infrastructure that forms the basis
of the rate is $7.09 million. The cost allocations to each benefitting party are based on the
benefitting percentages shown in previous section. The offsite levy balance (due from
developers) is allocated to various benefitting areas (as described in the next section).
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CORVUS Business Advisors
Total Recreation Offsite Levy Costs
Project
Costs
$93.00M
Less: Special
Grants &
Contributions
$46.88M
= Project
Balance
$46.13M
Less: Levy
Receipts
$0.73M
= Future
Development
(OSL Share)
$7.82M
= Off-site
Balance
$7.09M
= Other
Share
$0.00M
= Existing
Development
(Muni Share)
29.76M
= Future
Development
"Financial
Oversizing"
$8.55M
E7. Recreation Infrastructure Benefiting Areas
Net developer costs for each project have been allocated to multiple benefiting offsite levy
area (see tables below). Allocations are denoted with a "1" below applicable area numbers.
Benefiting areas were determined by Town staff. The lands anticipated to develop over the
25-years in each offsite levy benefitting area are used to determine rates.
Recreation Allocations to Benefitting Areas
Item
Project Description
Developer
Cost
1
2
3
4
5
6
7
8
9
10
11
12
1
Recreational Facility - Phase 1 - Fieldhouse
$ 4,612,400
1
1
1
1
1
1
1
1
1
1
1
1
2
Recreational Facility - Phase 2 - Aquatics
$ 2,984,578
1
1
1
1
1
1
1
1
1
1
1
1
3
Recreational Facility - Phase 3 - Arena
$ 221,395
1
1
1
1
1
1
1
1
1
1
1
1
100 Unallocated Offsite Levies Collected to Dec 31, 2020
$ (729,465)
1
1
1
1
1
1
1
1
1
1
1
1
7,088,908
$
E8. Account Balance
At December 31st, 2020 the recreation account balance was in a surplus of $729,464.53.
This amount takes into consideration expenditures and front-ending obligations up to end-
2020.
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CORVUS Business Advisors
Recreation Offsite Levy Reserve Balance
Description
Dr
Cr
Balance
Opening Balance at Jan 1, 2008
65,190.98
$
OSL Receipts 2008-2020
1,583,283.65
$
1,648,474.63
$
Withdrawals/Applied to OSL Projects (2008-2020)
1,080,228.87
$
568,245.76
$
Interest Earned (Charged) 2008-2020
161,218.77
$
729,464.53
$
Closing Balance at Dec 31, 2020 Not Including OSL Share of
Net Expenditures and Front-ending Repayments
729,464.53
$
Net Project Expenditures (OSL Share) In Addition to Withdrawals
Applied to Projects (2008-2020)
-
$
729,464.53
$
Closing Balance at Dec 31, 2020
729,464.53
$
E9. Development and Recreation Infrastructure Staging Impacts
Recreation offsite infrastructure will be constructed in staged fashion over the 25-year
development period.
To compensate parties for capital they provide in front-ending offsite infrastructure
construction, a 2.09%11 interest allowance has been charged to the account when it is
forecast to be in a negative balance. Further, a 1.00% interest credit has been provided to
the account when it is forecast to be in a positive balance. The graph and table below
outline the forecast water levy account balances over the 25-year development period.
If necessary, an interest staging adjustment has been applied to rates (slightly positive or
slightly negative) to ensure that the forecast account balance at the end of the 25-year
review period always returns to break-even (i.e., developers are not charged too much
thereby providing a windfall to the Town, nor are they charged too little thereby placing an
unequitable burden on taxpayers).
11 The 20-year debenture rate at the Alberta Capital Finance Authority at the time of writing was ~2.09%.
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
Anticipated Recreation Offsite Levy Account Balances
$(4,500,000)
$(4,000,000)
$(3,500,000)
$(3,000,000)
$(2,500,000)
$(2,000,000)
$(1,500,000)
$(1,000,000)
$(500,000)
$-
$500,000
$1,000,000
2021
2024
2027
2030
2033
2036
2039
2042
2045
$
Year
Recreation Reserve
Reserve
Balance
Anticipated Recreation Offsite Levy Account Balances
Opening Balance
729,465
$
Year
Receipts
Expenditure
Interest
Balance
2021
299,230
$
461,240
$
5,675
$
573,129
$
2022
305,215
$
4,234,183
$
(70,137)
$
(3,425,977)
$
2023
311,319
$
-
$
(65,096)
$
(3,179,754)
$
2024
317,545
$
-
$
(59,820)
$
(2,922,029)
$
2025
327,072
$
-
$
(54,235)
$
(2,649,192)
$
2026
323,179
$
-
$
(48,614)
$
(2,374,627)
$
2027
332,874
$
-
$
(42,673)
$
(2,084,426)
$
2028
342,860
$
-
$
(36,399)
$
(1,777,964)
$
2029
353,146
$
-
$
(29,779)
$
(1,454,597)
$
2030
363,713
$
-
$
(22,799)
$
(1,113,683)
$
2031
324,237
$
-
$
(16,499)
$
(805,945)
$
2032
333,964
$
-
$
(9,864)
$
(481,845)
$
2033
343,983
$
-
$
(2,881)
$
(140,743)
$
2034
354,303
$
425,653
$
(4,433)
$
(216,525)
$
2035
364,932
$
3,945,803
$
(79,366)
$
(3,876,762)
$
2036
375,880
$
-
$
(73,168)
$
(3,574,050)
$
2037
387,156
$
-
$
(66,606)
$
(3,253,500)
$
2038
398,771
$
-
$
(59,664)
$
(2,914,393)
$
2039
410,734
$
-
$
(52,326)
$
(2,555,985)
$
2040
423,056
$
-
$
(44,578)
$
(2,177,507)
$
2041
435,748
$
-
$
(36,403)
$
(1,778,162)
$
2042
448,820
$
-
$
(27,783)
$
(1,357,125)
$
2043
462,234
$
-
$
(18,703)
$
(913,594)
$
2044
476,009
$
-
$
(9,146)
$
(446,731)
$
2045
490,438
$
43,707
$
(0)
$
(0)
$
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
APPENDIX F: OFFSITE INFRASTRUCTURE DEFINITIONS
F1. Roadways
Town of Stony Plain maintains a roadway classification system consistent with the definition
of arterial, collector, and local roads contained in the Transportation Association of Canada's
Manual of Geometric Design Standards for Canadian Roads.
Local and collector roads within new development areas are constructed by developers, at
their cost, in conjunction with the developments.
Arterial roadways are typically designed as free flowing with controlled intersection spacing
and are considered a benefit to the Town at large. Therefore, new developments contribute
their proportionate share of the cost of these arterial roads via the transportation offsite levy
charge. Alberta Transportation highways are also considered Town arterial roads and the
costs of improvements are included in the transportation offsite levy charge.
Costs associated with the any of the arterial road development projects within the Town also
include stormwater, utility line burial, traffic signal, street light infrastructure, sidewalks, trails,
and land dedication.
F2. Water
Town of Stony Plain's philosophy regarding its waterworks system improvements is that
development is responsible, at their cost, for the construction of all new distribution mains up
to and including 300 mm diameter in size. Primary feeder mains (water mains larger then
300 mm diameter), treated water, storage reservoirs, pumping facilities and water quality
monitoring stations benefit the entire water distribution system and thus, the cost of such
facilities is then assessed proportionately against all benefiting lands through an offsite levy
charge.
Capital improvements to the water supply system are the responsibility of EPCOR. The cost
of such improvements are assessed proportionately against the Town through the
Commission's water utility rate structure and these costs are not included in the Town's
offsite levy charge.
F3. Sanitary Sewer
The sanitary sewer collection system in Town of Stony Plain provides wastewater servicing
to its residential and non-residential customers through local collection, conveyance, and
treatment via wastewater lagoons, or through the Alberta Capital Region Wastewater
Commission (ACRWC) infrastructure. The communities / locations serviced by the ACRWC
include: Cardiff, Sturgeon Valley, Sturgeon Industrial Park, and the Alberta Industrial
Heartland.
Sanitary sewer systems typically have a hierarchical classification based primarily upon the
size of diameter of pipe and the area they serve. In the case of the sanitary sewer system in
Town of Stony Plain, laterals (locals) are typically 200 mm and 250 mm diameter in size,
collectors are 300 mm and 375 mm diameter in size, and trunks are sewer pipe systems
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
greater than 375 mm in diameter.
Trunks, forcemains, and lift stations, benefit the entire sanitary sewer collection system. The
cost of such facilities is then assessed proportionately against all benefiting lands through
an offsite levy charge.
Development shall be fully responsible for the construction of lateral and collectors for the
sanitary sewer system at their entire cost.
Capital improvements to the Regional Treatment Plant and Transmission Line are the
responsibility of the ACRWC of which Town of Stony Plain is a member. The cost of such
capital improvements are assessed proportionately against Town of Stony Plain through the
ACRWC sewage utility rate structure and are not included in the Town of Stony Plain offsite
levy charge.
F4. Recreation
Recreation facilities means indoor municipal facilities used primarily by members of the
public to participate in recreational activities conducted at the facilities.
Town of Stony Plain 2021 Offsite Levy Update
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CORVUS Business Advisors
APPENDIX G: COMPARISON OF RATES
The table below compares the new Town offsite levy rates to other municipalities.
Municipality / Area
Average Per Ha.
Strathcona County* (roads, water, sewer, storm)
$9,600 - 73,700 (2018)
City of Beaumont* Residential (roads, water, sewer)
$53,900 - $77,600 (2019)
City of Fort Saskatchewan (West Park) (roads, water, sewer, storm)
$62.900 - $76,700 (2017)
Town of Stony Plain (roads, water, sewer, recreation)
$74,949
Parkland County* (roads, water, sewer, storm)
$82,500 (2018)
Sturgeon County - Sturgeon Valley* (roads, water, sewer)
$82,794 (in progress)
City of Spruce Grove* (roads, water, sewer)
$83,000 (2020)
Town of Calmar* (roads, water, sewer)
$95,700 (2020)
City of Fort Saskatchewan (South Fort) (roads, water, sewer, storm)
$104,100 (2017)
Leduc County* - Nisku (roads, water, sewer)
$109,000 (2017)
Town of Devon* (roads, water, sewer)
$119,900 (2019)
Town of High River (roads, water, sewer)
$130,000 (2013)
City of Leduc* (roads, water, sewer)
$133,100 (2020)
City of St. Albert* (roads, water, sewer, storm)
+$300,000 (2020)
City of Edmonton (roads, water, sewer, storm)
+$300,000
City of Calgary (roads, water, sewer, storm, rec, stabilization)
+$350,000
*CORVUS clients
**Information adapted from online sources as at Jan 1st, 2021.