This is the exact embedded text of the captured official document.
Snapshot b2cb46b0a0cb · verified 2026-10-23 ·
original document ·
archived snapshot ·
unofficial consolidation, the official version is held by the municipal clerk.
BYLAW NO. 24-17
OF THE TOWN OF STRATHMORE
IN THE PROVINCE OF ALBERTA
BYLAW NO. 24-17
THE TOWN OF STRATHMNORE
IN THE PROVINCE OF ALBERTA
A BYLAW OF THE TOWN OF STRATHMORE IN THE PROVINCE OF ALBERTA TO
IMPOSE OFF-SITE LEVIES IN RESPECT OF LAND OR BUILDINGS THAT ARE TO
BE SUBDIVIDED, DEVELOPED, OR ARE TO UNDERGO A CHANGE OF USE OR
INTENSITY OF USE
WHEREAS Section 648 of the Municipal Government Act, R.S.A 2000 Chapter M-26
and amendments thereto provides that a Municipal Council may pass a bylaw for the
imposition and payment of Offsite Levies in respect of land that is to be developed or
subdivided;
AND WHEREAS Council deems it necessary and expedient to collect Offsite Levies to
pay for the capital cost of infrastructure required to service the 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 Offsite Levies in accordance with the Municipal Government Act and the
regulations enacted thereunder;
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, the Council of the Town of Strathmore, duly assembled, hereby
enact as follows:
1.
SHORT TITLE
1.1.
This Bylaw may be cited as the "Offsite Levy Bylaw"
2.
PURPOSE
2.1.
This Bylaw is intended to:
a) Impose and provide for the payment of a levy to be known as an
Offsite Levy in respect of Developable Land; and
b) Authorize agreements to be entered in respect to payment of Offsite
Levies to ensure that the developer of each parcel of Developable Land
pays a proportionate share of the cost to provide new or expanded
BYLAW NO. 24-17
OF THE TOWN OF STRATHMORE
IN THE PROVINCE OF ALBERTA
infrastructure required for the area in which the Developable Land is
located.
3.
DEFINITIONS
3.1.
In this Bylaw, unless the context otherwise requires:
a) "Bylaw" means this Offsite Levy Bylaw
b) "Chief Administrative Officer" means the Chief Administrative
Officer for the Town, regardless of the specific title that may be
conferred on that officer from time to time
c) "Town" means the Town of Strathmore
d) "Council" means the Municipal Council for the Town
e) "Developable Land" means all land contained within the
Development Area:
i.
For which a Development Permit is obtained after the date of
enactment of this Bylaw, or;
ii.
For which Subdivisions approval is obtained after the date of
enactment of this Bylaw, excluding all Developed Land; and
iii.
Excludes all Developed Land
f) "Developed Land" means land that has been subject to Development
or a Subdivision prior to the date the Bylaw comes into force, and in
respect of which Offsite Levies for the same infrastructure has been
paid
g) "Development" means development as defined in the Municipal
Government Act
h) "Development Agreement" means development agreement as
referred to thin the Municipal Government Act
i) "Development Area" includes the area of land within the municipal
boundaries of the Town. For the purpose of imposing Offsite Levies, the
Town is divided into eleven (11) geographic areas as shown in Schedule
"A" of this Bylaw
j) "Lot" means lot as defined in the Municipal Government Act
k) "Municipal Government Act" means the Municipal Government Act,
R.S.A 2000 Chapter M-26 and amendments thereto
BYLAW NO. 24-17
OF THE TOWN OF STRATHMORE
IN THE PROVINCE OF ALBERTA
l) "Offsite Infrastructure" means those components and projects
referred to in the Report, in relation to facilities to be paid for in whole
or in part by Offsite Levies under the Bylaw
m) "Offsite Levies" means the Offsite Levies imposed pursuant to this
Bylaw
n) "Report" means the Town of Strathmore: Offsite Levy Rates Review,
April 11, 2024, prepared by Corvus Business Advisors, attached as
Schedule "C" to this Bylaw.
o) "Subdivision" means subdivision as defined in the Municipal
Government Act.
4.
OBJECT OF OFFSITE LEVIES
4.1.
The object of the Offsite Levy or Levies imposed and collected pursuant to
this Bylaw are to pay for all or any part of the capital cost of any or all of
the following:
a) New or expanded facilities for the storage, transmission, treatment, or
supplying of water;
b) New or expanded facilities for the treatment, movement, or disposal of
sanitary sewage;
c) New or expanded storm sewer drainage facilities;
d) New or expanded roads required for or impacted by a Subdivision or
Development
e) New or expanded transportation infrastructure required to connect, or
to improve the connection of municipal roads to provincial highways
resulting from a subdivision or development; and
f) Land required for or in connection with any facilities described within
this paragraph
5.
IMPOSITION OF LEVY
5.1.
The Offsite Levies are hereby established and imposed in respect of all
Developable Land in Developments Areas (Schedule "A") and included in
the Report (Schedule "C")
5.2.
The amount of the Offsite Levies imposed is calculated in the Report and
set out in Schedule "B"
BYLAW NO. 24-17
OF THE TOWN OF STRATHMORE
IN THE PROVINCE OF ALBERTA
5.3.
The Offsite Levies will be assessed on all Developable Land on a per
hectare (ha) basis, excluding those portions of Developable Land that are
designated pursuant to Subdivision as:
a) Environmental Reserve;
b) School Reserve;
c) Municipal Reserve; or
d) Arterial Road Right-of-Way
5.4.
Unless otherwise agreed, payment of Offsite Levies imposed under this
Bylaw is due:
a) 30% at Signing of Development Agreement
b) 30% at application for CCC or two (2) years from signing of DA,
whichever comes first
c) Full payment of all outstanding levies at application for FAC or three (3)
years from signing of DA, whichever comes first
Nothing in this Section 5.4 shall prevent the CAO or his/her designate from
requiring payment in full of Offsite Levies imposed under this Bylaw at the
time of signing of a Development Agreement or within such period of time
determined to be appropriate by the CAO or his/her designate
6.
AUTHORITY OF THE CHIEF ADMINISTRATIVE OFFICER
6.1.
The Chief Administrative Officer is delegated the authority to enforce and
administer this Bylaw, including, but not limited to the authority to:
a) Enter into Development Agreements on behalf of the Town with respect
to, among other things, the collection of Offsite Levies;
b) Defer collection of Offsite Levies imposed pursuant to this Bylaw; and
c) Require security for payment of any deferred levies.
6.2.
The Chief Administrative Officer may delegate the authority to enforce and
administer this Bylaw.
7.
ANNUAL REPORT
7.1.
To maintain the requirements of the Municipal Government Act, on or
before December 31 is each calendar year, the Chief Administrative
Officer, or their designate, shall provide an annual report to Council
regarding the Offsite Levies imposed under this bylaw, including:
a) Offsite Infrastructure constructed during the previous calendar year;
BYLAW NO. 24-17
OF THE TOWN OF STRATHMORE
IN THE PROVINCE OF ALBERTA
b) Construction costs of Offsite Infrastructure constructed in the previous
calendar year;
c) Estimated construction costs for Offsite Infrastructure yet to be
constructed and an explanation as to any adjustments to the estimates
since the previous annual report;
d) Amount collected in Offsite Levies; and
e) Specifics of total value of Offsite Levies being held by the Town and yet
to be expended on Offsite Infrastructure, interest earned and
commitments for future expenditures of such monies
8.
ACCOUNTING
8.1.
All funds collected pursuant to this Bylaw shall be accounted for in a
special fund for each category of infrastructure and expended only as
permitted under the Municipal Government Act
9.
REVIEW
9.1.
The Town shall review the rates for Offsite Levies annually and, if
required, shall amend this Bylaw accordingly to update the rates for
Offsite Levies
10.
GENERAL
10.1. Nothing in this Bylaw precludes the Town from:
a) Imposing further or different levies, duly enacted by Bylaw, on any
portion of the Developable Lands in respect of which the Town has not
collected Offsite Levies;
b) Deferring collection of Offsite Levies of any portion of Developable
Lands, including requiring security for payment of such deferred levies;
or
c) Reducing payment of the Offsite Levies required pursuant to this Bylaw,
or otherwise providing for credits for other Offsite Infrastructure or
oversize Infrastructure constructed by a developer in calculating and/or
collecting the Offsite Levies that become payable to this Bylaw
10.2. Schedules "A" and "B" to this Bylaw, and specifically, without restricting
the generality of the foregoing, the rates for the Offsite Levies set out in
the Report, may be updated or amended from time to time by amendment
to this Bylaw
10.3. The Report (Schedule "C") provides information on the approach and
methods used to calculate Offsite Levies in this Bylaw
BYLAW NO. 24-17
OF THE TOWN OF STRATHMORE
IN THE PROVINCE OF ALBERTA
10.4. If any term, clause or condition of the Bylaw or application thereof is
found to be invalid or unenforceable, the remainder of this Bylaw or the
application of such term, clause or condition shall not be affected and shall
remain in force and effect
11.
DEFAULT OF PAYMENT
11.1. If the registered owner of land fails, neglects, or refuses to pay an Offsite
Levy imposed on the land:
a) Council may cause the levy to be added to the tax roll as a charge
against the lands, or on a pro rata basis against each lot within the area
in respect of which the Offsite Levies are payable under an Agreement
as taxes, and with the same priority as to lien and to payment thereof
as in the case of ordinary municipal taxes; or
b) The issuance of final Subdivision documents, Development Permits, or
Building Permits may be withheld until the owner or purchaser has
entered into the Agreement or paid the outstanding levy
12.
TRANSITION
12.1. This Bylaw applies to:
a) Any Subdivision where the date of subdivision approval occurs on or
after the date this Bylaw comes into force; and
b) Any Development where the date of issuance of a development permit
occurs on or after the date this Bylaw comes into force
12.2. Development Agreements entered into prior to the enactment of this
Bylaw shall remain valid and in effect
12.3. Any Offsite Levies payable under Development Agreements entered into
prior to the enactment of the Bylaw, are confirmed and shall continue to
be payable notwithstanding the repeal of previous Offsite Levy Bylaws
pursuant to Section 13.1
13.
ENACTMENT
13.1. The Bylaw 21-07 and any amendments thereto is hereby repealed
13.2. This Bylaw shall come into full force and effect upon third and final
reading
BYLAW NO. 24-17
OF THE TOWN OF STRATHMORE
IN THE PROVINCE OF ALBERTA
READ a first time this 2nd day of October, 2024.
READ a second time this 6th day of November, 2024.
READ a third and final time this 6th day of November, 2024.
Original Signed Document on File
_____
Mayor
Original Signed Document on File
Director of Strategic, Administrative
and Financial Services
BYLAW NO. 24-17
OF THE TOWN OF STRATHMORE
IN THE PROVINCE OF ALBERTA
SCHEDULE "A"
GEOGRAPHIC AREA MAP - DEVELOPABLE LANDS
BYLAW NO. 24-17
OF THE TOWN OF STRATHMORE
IN THE PROVINCE OF ALBERTA
SCHEDULE "B"
OFFSITE LEVY RATES BY AREA (PER HECTARE)
AREA
Transportation
Water
Sanitary
Stormwater
TOTAL
1
$71,354
$42,645
$58,393
$2,507
$174,900
2
$71,354
$42,645
$7,204
$18,134
$139,337
3
$71,330
$44,267
$19,721
$28,986
$165,305
4
$71,330
$44,267
$24,400
$5,050
$146,047
5
$71,354
$42,645
$24,400
$33,899
$172,297
6
$71,354
$42,645
$7,204
$26,443
$147,646
7
$71,354
$42,645
$7,204
$26,443
$147,646
8
$71,354
$42,645
$-
$26,443
$140,443
9
$71,354
$42,645
$9,418
$26,443
$149,861
10
$71,354
$42,645
$3,819
$26,443
$144,262
11
$71,330
$44,267
$324
$36,441
$153,363
BYLAW NO. 24-17
OF THE TOWN OF STRATHMORE
IN THE PROVINCE OF ALBERTA
SCHEDULE "C"
TOWN OF STRATHMORE: OFFSITE LEVY RATES REVIEW
APRIL 11, 2024
CORVUS BUSINESS ADVISORS
(Document Attached)
This document has been prepared by CORVUS Business Advisors for the sole purpose and exclusive use of the
Town of Strathmore.
Town of Strathmore:
Offsite Levy Rates Review
April 11th, 2024
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 11th, 2024
Town of Strathmore
Box 2280, 1 Parklane Dr.
Strathmore AB
T1P 1K2
RE: Town of Strathmore: Offsite Levy Rates Review
Enclosed is our report in support of the Strathmore's offsite levy rate update. If you have any
questions do not hesitate to contact me.
Sincerely,
Greg Weiss
President
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ i
CORVUS Business Advisors
1 DOCUMENT INFORMATION
Revision Date
Description
April 11th, 2024
Final
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ ii
CORVUS Business Advisors
2 CONTENTS
1
DOCUMENT INFORMATION ........................................................................................................... I
2
CONTENTS...................................................................................................................................... II
3
INTRODUCTION .............................................................................................................................. 3
3.1
OVERVIEW ................................................................................................................................................ 3
3.2
SCOPE AND APPROACH ............................................................................................................................. 3
3.3
METHODOLOGY ........................................................................................................................................ 4
4
KEY FINDINGS ................................................................................................................................ 4
5
RATE UPDATES ............................................................................................................................. 7
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 ................................................................................................................... 35
APPENDIX E: STORMWATER ........................................................................................................... 44
APPENDIX F: OFFSITE INFRASTRUCTURE DEFINITIONS ............................................................ 52
APPENDIX G: COMPARISON OF RATES ......................................................................................... 54
APPENDIX H: RATE CALCULATION................................................................................................. 55
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 3
CORVUS Business Advisors
3 INTRODUCTION
3.1
Overview
Bylaw 21-07, established by the Town of Strathmore ("the Town") in 2021, defines offsite
levy charges for transportation, water, sanitary, and stormwater 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.
This report outlines the methodology and information used in establishing updated
transportation, water, sanitary, and stormwater offsite levy rates for the Town.
3.2
Scope and Approach
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, and
drainage 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:
Development and implementation of the offsite levy model--configuration, priming,
and data loading.
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).
Determination of reserve opening balances (historical reconciliation details provided
by Town staff).
Determination of roads, water, sanitary, and drainage levy rates.
Preparation of the offsite levy report
Presentation of results.
Offsite levy rates are forecast using a rolling 25-year review period. During this review, a cut-
off date of December 31st, 2023 was established in alignment with the Town's most recent
year-end. Accordingly, the review period stems from 2024 to 2048. 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
1 It was not within CORVUS' scope of work to review the Town's capital/master plans. Plans were reviewed and
refined by Town staff and their engineering advisors.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 4
CORVUS Business Advisors
its next rate update, information from January 1st, 2024 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.
3.3
Methodology
Rates are calculated using as an advanced cost-over-area approach, with "base" rates
adjusted to ensure forecast levy account balances reach zero at the end of the 25-year
review period. A detailed description of the calculation is included in Appendix H.
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 $299.83 million. An overview of offsite infrastructure costs and
maps is provided in Appendices B1 (Transportation), C1 (Water), D1 (Sanitary), and E1
(Stormwater); and a definition of each offsite infrastructure type is provided in Appendix F.
Before determining how 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 identified approximately $0.23 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
$32.09 million; and the share of costs which benefits other stakeholders (e.g., neighbouring
municipalities) is $0.00.
The share of costs which benefits future development totals approximately $267.51 million
($98.77 million + $168.74 million) and is based on the allocations shown in Appendices
B4, C4, D4, and E4. However, $98.77 million of the cost which benefits future development
is deemed beyond the 25-year review period (called "financial oversizing"). Financial
oversizing is a pro-rated amount based on the anticipated year of construction (i.e.,
construction staging) which is provided in Appendices B3, C3, D3, and E3.
Of the $267.51 million in total offsite infrastructure costs which benefits future development,
the portion that is deemed within the 25-year review period and included in rates today (the
offsite levy share) is approximately $168.74 million, as shown in the table below. A
summary of offsite infrastructure net cost "flow-thru" is provided in Appendices B6, C6, D6,
and E6.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 5
CORVUS Business Advisors
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
230,915
$
17,808,257
$
-
$
25,986,569
$
45,246,458
$
89,272,200
$
Water
-
$
12,501,472
$
-
$
46,438,853
$
66,176,417
$
125,116,741
$
Sanitary
-
$
1,776,196
$
-
$
22,932,412
$
39,975,620
$
64,684,228
$
Stormwater
-
$
-
$
-
$
3,407,254
$
17,345,222
$
20,752,476
$
Total
230,915
$
32,085,924
$
-
$
98,765,088
$
168,743,717
$
299,825,645
$
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, 2023,
the Town collected approximately $6.02 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
633,052
$
Water
2,274,813
$
Sanitary
1,399,870
$
Stormwater
1,716,491
$
Total
6,024,226
$
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 11 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 taxpayers. 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 793 ha. during the
25-year review period (the land development forecast is shown in Appendix A). This is a
reduction since the last update. A decrease in land development puts upward pressure on
rates, all other things being equal.
Offsite Levy Reserves. The Town is currently managing offsite levy receipts and
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 6
CORVUS Business Advisors
withdrawals via four accounts (i.e., one 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 to construct the type of
infrastructure for which they were collected (e.g., water levies can only be used to construct
water offsite infrastructure, not sanitary infrastructure etc.).
Interest. Offsite levy account balances (both actual and forecast) are impacted by interest.
Actual reserve inflows and forecast reserve balances that are in a positive/surplus position
earn interest (as required by the MGA). Actual reserve outflows and forecast reserve
balances that are in a negative/deficit position are charged interest (forecast balances that
are negative indicate the requirement for front-ending). 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 reserve balances are insufficient.
There are 2 alternatives for repaying front-ending debts to claimants: (1) the First-In First-
Out (FIFO) approach, and (2) the Average Outstanding Claim (AOC) approach. The FIFO
approach can create: (a) stagnation of development, and (b) increased pressure on the
municipality (i.e., taxpayers) to front-end. Accordingly, it is recommended that the Town
establish an offsite levy policy framework that includes an AOC approach for repayment of
front-ending.
Under the AOC approach, claimants share distributions based on their proportionate share
of outstanding claims. For example, Developer A fronts a $1 million piece of infrastructure in
2016. The Town front-ends a $0.5 million piece of infrastructure in 2017. And Developer B 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 the Town (33.3% of distributions) until fully repaid2. If Developer B chooses to front-end
in the future, then future claim reimbursements would be shared amongst Developer A (50%
of distributions) and the Town (25% of distributions) and Developer B (25% of distributions)
until repaid3. This approach is preferred, as it ensures regular positive cash flow to all
claimants, and therefore no disincentive to future front-ending.
It is our understanding that (with the exception of water project #22 which is discussed in
Section 6) all offsite projects constructed prior to 2021 whose portion of cost was allocated
2 $1,000,000 / ($1,000,000 + $500,000) = 66.6%. $500,000 / ($1,000,000 + $500,000) = 33.3%.
3 $1,000,000 / ($1,000,000 + $500,000 + $500,000) = 50%. $500,000 / ($1,000,000 + $500,000 + $500,000) =
25%.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 7
CORVUS Business Advisors
to development, were financed via the offsite levy accounts. As such, there was no Town
front-ending prior to 2021 and all offsite levy accounts maintained a surplus balance at end-
2020.
Offsite Levy Account Balances. At end-2023, the Town is showing a balance of $335,109
in the transportation account. However, after adjustments the balance in the transportation
account should be amended to reflect a surplus of approximately $377,710 at end 2023. A
complete reconciliation of the transportation account balance is provided in Appendix B8.
At end-2023, the Town is showing a balance of $1,300,469 in the water account. However,
after adjustments the balance in the water account should be amended to a surplus of
approximately $1,163,577 at end 2023. A complete reconciliation of the water account
balance is provided in Appendix C8.
At end-2023, the Town is showing a balance of $1,114,633 in the sanitary account.
However, after adjustments the balance in the sanitary account should be amended to a
surplus of approximately $1,185,328 at end 2023. A complete reconciliation of the sanitary
account balance is provided in Appendix D8.
At end-2023, the Town is showing a balance of $1,757,639 in the stormwater account.
However, after adjustments the balance in the stormwater account should be amended to a
surplus of approximately $1,777,403 at end 2023. A complete reconciliation of the sanitary
account balance is provided in Appendix E8.
5 RATE UPDATES
For future development to pay for its current share of the $299.83 million offsite
infrastructure costs contained in the Town's capital plans, rates are approximately $165,342
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.
The primary reason for the increase in rates is the decrease in forecast land development,
and the increase in interest rates.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 8
CORVUS Business Advisors
Offsite Levy Rates (Per Net Hectare): High, Low, & Averages4
Transportation
Water
Sanitary
Stormwater
Total
High
72,330
$
44,267
$
58,393
$
36,441
$
174,900
$
Low
71,354
$
42,645
$
-
$
2,507
$
139,337
$
Weighted Average
71,491
$
42,874
$
30,656
$
20,322
$
165,342
$
Summary of Offsite Levy Rates by Area (Per Net Hectare)
Area #
Transportation
Water
Sanitary
Stormwater
Total
1.0
71,354
$
42,645
$
58,393
$
2,507
$
174,900
$
2.0
71,354
$
42,645
$
7,204
$
18,134
$
139,337
$
3.0
72,330
$
44,267
$
19,721
$
28,986
$
165,305
$
4.0
72,330
$
44,267
$
24,400
$
5,050
$
146,047
$
5.0
71,354
$
42,645
$
24,400
$
33,899
$
172,297
$
6.0
71,354
$
42,645
$
7,204
$
26,443
$
147,646
$
7.0
71,354
$
42,645
$
7,204
$
26,443
$
147,646
$
8.0
71,354
$
42,645
$
-
$
26,443
$
140,443
$
9.0
71,354
$
42,645
$
9,418
$
26,443
$
149,861
$
10.0
71,354
$
42,645
$
3,819
$
26,443
$
144,262
$
11.0
72,330
$
44,267
$
324
$
36,441
$
153,363
$
4 Highs, Lows, and Averages are shown for information purposes only. Developers pay the actual rate applicable
to their specific development area.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 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 Town account records and balances to align with the account balances in
the offsite levy model and described in Appendices B8, C8, D8, and E8; and in so
doing, withdraw excess funds (if any) to pay down front-ending claims, or top-up
account shortfalls as required.
2. Establish a formal and regular communication and documentation process between
the Finance, Planning, and Engineering departments to enable the accurate
documentation of offsite levy expenditures and front-ending details.
3. Ensure withdrawals from offsite levy accounts are limited to only that portion of
project cost for which future development is responsible (i.e., Project Cost X
Developer Share %).
4. During the reconciliation of future account balances, ensure the interest earning and
charge rates that underpin the offsite levy bylaw for that specific time period are used
to determine reserve interest impacts.
5. It is our understanding that water project #22 was front-ended by a local developer,
and the Town has an agreement in place to repay the front-ended amount over
several years. However, it is also our understanding that front-ending repayments to
date have from an account other than the offsite levy account. As this project
benefits development 100%, the Town's repayments to date should be reimbursed
from the water offsite levy account, and future front-ending repayments should be
made directly from the water offsite levy account.
6. Changes to the MGA in 2017 enable municipalities to charge offsite levies for
recreation, fire, police, library, and interchange facilities. Town Administration and
Council should consider whether it wishes to adopt such levies in the future and, if
so, begin developing the necessary supporting documentation that will be needed to
support such levies. Support documentation requirements for these new levies are
outlined in Section 648 of the Municipal Government Act and Regulation AR
187/2017.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 10
CORVUS Business Advisors
7 ACKNOWLEDGEMENTS
CORVUS Business Advisors would like to thank all Town of Strathmore staff from
Engineering, Planning, and Finance who supported the work of this review.
8 DISCLAIMER
CORVUS Business Advisor has relied upon The Town of Strathmore 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 upon assumptions and the
best available information of the day. Planning assumptions, cost estimates etc. can change
each year. Accordingly, the Municipal Government Act requires that offsite levy rates be
updated with the most available information on a regular basis (usually annually). When
information changes, it will be reflected in a future update, and rates adjusted accordingly.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 11
CORVUS Business Advisors
APPENDIX A: OFFSITE LEVY AREAS AND LAND STAGING
During this review, the Town's offsite levy area were amended and organized into 11 offsite
levy areas, as shown in the map below to, In so doing: (1) offsite levy area boundaries align
with infrastructure benefiting basin described in the Town's master plans, and (2) the
amended areas ensure coverage of all Town lands--this is a leading practice and ensures
any undeveloped land or redeveloped lands that have not paid levies previously are
included in the bylaw. All offsite levy infrastructure costs are allocated to one or more areas.
Offsite Levy Areas
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 12
CORVUS Business Advisors
Total net development area at end 2023, the amount of land available for development in all
offsite levy areas, was approximately 1,340 ha. In calculating net development area,
allowances have been made for environmental reserves, municipal reserves, and arterial
road right of way and other deductions. From 2023 onward, this calculation will remain
static, and the Town's model will automatically deduct lands that are developed from the
bank of available lands.
Offsite Levy Net Development Area5,6
Area Ref. #
Development Area Location Gross Area (ha.)
Environmental
Reserves (ha.)
Sub-total
Municipal
Reserves
Arterial Right of
Way and Other
Deductions (ha.)
Net
Development
Area (ha.)
1.5
Northwest
692.40
15.00
677.40
67.74
12.80
596.86
2.5
Hillview
-
-
-
-
-
-
3.5
SW 26
32.40
-
32.40
3.24
-
29.16
4.5
SE 26
32.40
-
32.40
3.24
-
29.16
5.5
East
390.20
18.10
372.10
37.21
13.10
321.79
6.5
Central
15.00
-
15.00
1.50
-
13.50
7.5
West Central
58.10
-
58.10
5.81
4.00
48.29
8.5
Southwest Central
6.80
-
6.80
0.68
-
6.12
9.5
Southwest
147.90
11.10
136.80
13.68
3.40
119.72
10.5
South
5.00
-
5.00
0.50
-
4.50
11.5
Southeast
240.20
37.50
202.70
20.27
11.40
171.03
1,620.40
81.70
1,538.70
153.87
44.70
1,340.13
Summary of Offsite Levy Net Development Area
Description
ha.
Gross Development Area
1,620.40
Less Environment Reserve
81.70
Less Municipal Reserve
153.87
Less ROW Allowance
44.70
Net Development Area
1,340.13
*Note: 1 Hectare (ha.) = ~2.47 Acres
Net development area definitions will be applied in determining offsite levy obligations of
developers on application for subdivision or development within The Town of Strathmore.
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 that bisects the
development lands.
5 Area measurements were provided by Town staff.
6 The Town's offsite levy model allows for 5 different land types. All lands are included in the fifth designation,
hence the area reference of ".5". This has no bearing on rates.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 13
CORVUS Business Advisors
-
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.
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 1,140 ha. of net land available across all offsite levy areas, planners estimate that
approximately 793 ha. (59%) 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 In Next 25 Years
793.04
59.2%
Developed Beyond 25 Years
547.09
40.8%
Net Development Area
1,340.13
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 14
CORVUS Business Advisors
Anticipated Development during the 25 Year Rate Planning Period
Area
Ref. #
Development Area
Location
Area Developed
in Next 25
years
(Net ha.)
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
1.5
Northwest
299.500
9.30
9.30
9.30
9.30
9.30
9.30
9.30
9.30
9.30
9.30
9.30
9.30
9.30
9.30
9.30
16.00
16.00
16.00
16.00
16.00
16.00
16.00
16.00
16.00
16.00
2.5
Hillview
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3.5
SW 26
29.160
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5.83
5.83
5.83
5.83
5.84
-
-
-
-
-
4.5
SE 26
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5.5
East
189.800
6.49
6.49
6.49
6.49
6.49
6.49
6.49
6.49
6.49
6.49
6.49
6.49
6.49
6.49
6.49
6.49
6.49
6.49
6.49
6.49
12.00
12.00
12.00
12.00
12.00
6.5
Central
13.500
1.35
1.35
1.35
1.35
1.35
1.35
1.35
1.35
1.35
1.35
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7.5
West Central
48.290
4.83
4.83
4.83
4.83
4.83
4.83
4.83
4.83
4.83
4.83
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8.5
Southwest Central
6.120
1.53
1.53
1.53
1.53
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9.5
Southwest
119.670
6.57
6.57
6.57
6.57
6.57
6.57
4.90
4.90
4.90
4.90
4.90
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
4.00
3.75
10.5
South
4.500
0.90
0.90
0.90
0.90
0.90
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11.5
Southeast
82.500
3.75
3.75
3.75
3.75
3.75
3.75
3.75
3.75
3.75
3.75
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
793.04
34.72
34.72
34.72
34.72
33.19
32.29
30.62
30.62
30.62
30.62
23.69
22.79
22.79
22.79
22.79
35.32
35.32
35.32
35.32
35.33
35.00
35.00
35.00
35.00
34.75
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 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)
future debenture interest associated with financing, and (c) future cost estimates. Total cost
is approximately $89.25 million (in current dollars) as outlined in the table below. Actual
construction expenditures, financing charges (if any), and future cost estimates were
provided by Town staff. 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
Wildflower Road - Phase 1
$ -
-
$
2,537,500
$
2,537,500
$
2
Wildflower Road - Phase 2
$ -
-
$
7,032,500
$
7,032,500
$
3
Wildflower Road - Phase 3
$ -
-
$
4,845,000
$
4,845,000
$
4
Highway 1 & Wheatland Trail Intersection Upgrades
$ -
-
$
137,274
$
137,274
$
5
George Freeman Trail Upgrades (Parklane to Archie Klaiber Trail)
$ -
-
$
8,990,000
$
8,990,000
$
6
Wheatland Trail Twinning
$ -
-
$
3,114,377
$
3,114,377
$
7
Highway 1/Wildflower Road Signalization
$ -
-
$
1,160,000
$
1,160,000
$
8
Wheatland Trail & Westcreek Access
$ -
-
$
1,139,695
$
1,139,695
$
9
TWP Road 244 & Lakewood Circle Intersection
$ -
-
$
766,940
$
766,940
$
10
TWP Road 244 & Wheatland Trail Intersection
$ -
-
$
362,500
$
362,500
$
11
Highway 1 Signal Timing
$ -
-
$
54,994
$
54,994
$
12
George Freeman Trail Twinning (Parklane Drive to Centennial Drive)
$ -
-
$
4,338,752
$
4,338,752
$
13
Highway 1 & Wildflower Road Intersection Upgrades
$ -
-
$
141,413
$
141,413
$
14
Highway 1 & George Freeman Trail Intersection Upgrades
$ -
-
$
112,607
$
112,607
$
15
Highway 1 & Edgefield Access Intersection Upgrades
$ -
-
$
1,403,652
$
1,403,652
$
16
TWP Road 244 Upgrades (Boundary to Boundary)
$ -
-
$
12,414,609
$
12,414,609
$
17
Wheatland Trail Upgrades (Boundary to Boundary)
$ -
-
$
8,276,436
$
8,276,436
$
18
George Freeman Trail Twinning (Centennial Drive to Brent Blvd)
$ -
-
$
3,310,563
$
3,310,563
$
19
Brent Boulevard Upgrade
$ -
-
$
1,704,790
$
1,704,790
$
20
George Freeman Trail Twinning (Brent Blvd to TWP Road 244)
$ -
-
$
3,310,563
$
3,310,563
$
21
Westcreek/Wildflower Arterial (Wheatland Trail to WID Canal)
$ -
-
$
7,862,586
$
7,862,586
$
22
Westcreek/Wildflower Arterial (WID Canal to Wildflower Road)
$ -
-
$
6,207,305
$
6,207,305
$
23
Westcreek Wildflower Arterial Bridge
$ -
-
$
3,475,615
$
3,475,615
$
24
Westmount Road Extension (South of Highway 1)
$ -
-
$
2,482,922
$
2,482,922
$
25
Strathford Boulevard & Township Road 244 Intersection
$ -
-
$
342,195
$
342,195
$
26
George Freeman Trail & Township Road 244 Intersection
$ -
-
$
342,195
$
342,195
$
27
Wheatland Trail & Hillview Drive Intersection
$ -
-
$
446,341
$
446,341
$
28
Wheatland Trail & Brent Boulevard Intersection
$ -
-
$
446,341
$
446,341
$
29
George Freeman Trail & Brent Boulevard Intersection
$ -
-
$
342,195
$
342,195
$
30
George Freeman Trail & Centennial Drive Intersection
$ -
-
$
342,195
$
342,195
$
31
Wheatland Trail & Westmount Drive Intersection
$ -
-
$
446,341
$
446,341
$
32
Wheatland Trail & 2 Avenue Intersection
$ -
-
$
446,341
$
446,341
$
33
Centre Street & Archie Klaiber Trail Intersection
$ -
-
$
342,195
$
342,195
$
34
Lakeside Blvd & Archie Klaiber Trail Intersection
$ 593,265
-
$
-
$
593,265
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
$ -
-
$
-
$
-
$
593,265
$
-
$
88,678,935
$
89,272,200
$
*Past expenditures include past financing expenditures (interest) if any.
**Costs estimates provided by Town staff.
***Estimates include engineering and contingencies.
****Missing project numbers (if any) stem from projects that were deleted. However, certain deleted projects may
be showing if a net project "credit" remains.
*****Unallocated levies collected to end-2020 (if any) are included in project #100 and credited 100% to future
development and to offsite levy areas where development occurred prior to 2020 (see Section B5).
******Offsite infrastructure definitions are described in Appendix F.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 16
CORVUS Business Advisors
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). The Town has/will receive $0.23 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 $89.04 million.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 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)
Reduced Project
Cost
1
Wildflower Road - Phase 1
2,537,500
$
-
$
-
$
2,537,500
$
2
Wildflower Road - Phase 2
7,032,500
$
-
$
-
$
7,032,500
$
3
Wildflower Road - Phase 3
4,845,000
$
-
$
-
$
4,845,000
$
4
Highway 1 & Wheatland Trail Intersection Upgrades
137,274
$
-
$
-
$
137,274
$
5
George Freeman Trail Upgrades (Parklane to Archie Klaiber Trail)
8,990,000
$
-
$
-
$
8,990,000
$
6
Wheatland Trail Twinning
3,114,377
$
-
$
-
$
3,114,377
$
7
Highway 1/Wildflower Road Signalization
1,160,000
$
-
$
-
$
1,160,000
$
8
Wheatland Trail & Westcreek Access
1,139,695
$
-
$
-
$
1,139,695
$
9
TWP Road 244 & Lakewood Circle Intersection
766,940
$
-
$
-
$
766,940
$
10
TWP Road 244 & Wheatland Trail Intersection
362,500
$
-
$
-
$
362,500
$
11
Highway 1 Signal Timing
54,994
$
-
$
-
$
54,994
$
12
George Freeman Trail Twinning (Parklane Drive to Centennial Drive)
4,338,752
$
-
$
-
$
4,338,752
$
13
Highway 1 & Wildflower Road Intersection Upgrades
141,413
$
-
$
-
$
141,413
$
14
Highway 1 & George Freeman Trail Intersection Upgrades
112,607
$
-
$
-
$
112,607
$
15
Highway 1 & Edgefield Access Intersection Upgrades
1,403,652
$
-
$
-
$
1,403,652
$
16
TWP Road 244 Upgrades (Boundary to Boundary)
12,414,609
$
-
$
-
$
12,414,609
$
17
Wheatland Trail Upgrades (Boundary to Boundary)
8,276,436
$
-
$
-
$
8,276,436
$
18
George Freeman Trail Twinning (Centennial Drive to Brent Blvd)
3,310,563
$
-
$
-
$
3,310,563
$
19
Brent Boulevard Upgrade
1,704,790
$
-
$
-
$
1,704,790
$
20
George Freeman Trail Twinning (Brent Blvd to TWP Road 244)
3,310,563
$
-
$
-
$
3,310,563
$
21
Westcreek/Wildflower Arterial (Wheatland Trail to WID Canal)
7,862,586
$
-
$
-
$
7,862,586
$
22
Westcreek/Wildflower Arterial (WID Canal to Wildflower Road)
6,207,305
$
-
$
-
$
6,207,305
$
23
Westcreek Wildflower Arterial Bridge
3,475,615
$
-
$
-
$
3,475,615
$
24
Westmount Road Extension (South of Highway 1)
2,482,922
$
-
$
-
$
2,482,922
$
25
Strathford Boulevard & Township Road 244 Intersection
342,195
$
-
$
-
$
342,195
$
26
George Freeman Trail & Township Road 244 Intersection
342,195
$
-
$
-
$
342,195
$
27
Wheatland Trail & Hillview Drive Intersection
446,341
$
-
$
-
$
446,341
$
28
Wheatland Trail & Brent Boulevard Intersection
446,341
$
-
$
-
$
446,341
$
29
George Freeman Trail & Brent Boulevard Intersection
342,195
$
-
$
-
$
342,195
$
30
George Freeman Trail & Centennial Drive Intersection
342,195
$
-
$
-
$
342,195
$
31
Wheatland Trail & Westmount Drive Intersection
446,341
$
-
$
-
$
446,341
$
32
Wheatland Trail & 2 Avenue Intersection
446,341
$
-
$
-
$
446,341
$
33
Centre Street & Archie Klaiber Trail Intersection
342,195
$
-
$
-
$
342,195
$
34
Lakeside Blvd & Archie Klaiber Trail Intersection
593,265
$
230,915
$
-
$
362,350
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
-
$
-
$
-
$
-
$
89,272,200
$
230,915
$
-
$
89,041,285
$
B3. Year of Construction
The timing of construction is used to determine the impact of inflation on cost, the impact of
forecast reserve balances, and the estimate of financial oversizing (described in the Section
that follows). The 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 Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 18
CORVUS Business Advisors
Forecast Year of Construction
Item
Project Description
Construction Start
Year
1
Wildflower Road - Phase 1
2027
2
Wildflower Road - Phase 2
2029
3
Wildflower Road - Phase 3
2033
4
Highway 1 & Wheatland Trail Intersection Upgrades
2029
5
George Freeman Trail Upgrades (Parklane to Archie Klaiber Trail)
2029
6
Wheatland Trail Twinning
2029
7
Highway 1/Wildflower Road Signalization
2036
8
Wheatland Trail & Westcreek Access
2039
9
TWP Road 244 & Lakewood Circle Intersection
2039
10
TWP Road 244 & Wheatland Trail Intersection
2039
11
Highway 1 Signal Timing
2047
12
George Freeman Trail Twinning (Parklane Drive to Centennial Drive)
2047
13
Highway 1 & Wildflower Road Intersection Upgrades
2047
14
Highway 1 & George Freeman Trail Intersection Upgrades
2047
15
Highway 1 & Edgefield Access Intersection Upgrades
2047
16
TWP Road 244 Upgrades (Boundary to Boundary)
2050
17
Wheatland Trail Upgrades (Boundary to Boundary)
2050
18
George Freeman Trail Twinning (Centennial Drive to Brent Blvd)
2050
19
Brent Boulevard Upgrade
2050
20
George Freeman Trail Twinning (Brent Blvd to TWP Road 244)
2050
21
Westcreek/Wildflower Arterial (Wheatland Trail to WID Canal)
2030
22
Westcreek/Wildflower Arterial (WID Canal to Wildflower Road)
2035
23
Westcreek Wildflower Arterial Bridge
2030
24
Westmount Road Extension (South of Highway 1)
2030
25
Strathford Boulevard & Township Road 244 Intersection
2030
26
George Freeman Trail & Township Road 244 Intersection
2030
27
Wheatland Trail & Hillview Drive Intersection
2030
28
Wheatland Trail & Brent Boulevard Intersection
2030
29
George Freeman Trail & Brent Boulevard Intersection
2030
30
George Freeman Trail & Centennial Drive Intersection
2030
31
Wheatland Trail & Westmount Drive Intersection
2030
32
Wheatland Trail & 2 Avenue Intersection
2030
33
Centre Street & Archie Klaiber Trail Intersection
2030
34
Lakeside Blvd & Archie Klaiber Trail Intersection
2023
*Project costs are inflated by 3.0% per annum to the year of construction.
B4. Transportation Offsite Infrastructure Benefiting Parties
The transportation offsite infrastructure listed above will benefit three parties to varying
degrees:
1. Town of Strathmore - 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 deemed cost (i.e., levyable
transportation infrastructure costs) which benefits future development beyond
the 25-year review period.
o In Rates - that portion of deemed cost (i.e., levyable transportation
infrastructure costs) which benefits future development within the 25-
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 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
Wildflower Road - Phase 1
2,537,500
$
20.0%
9.6%
70.4%
2
Wildflower Road - Phase 2
7,032,500
$
20.0%
16.0%
64.0%
3
Wildflower Road - Phase 3
4,845,000
$
20.0%
28.8%
51.2%
4
Highway 1 & Wheatland Trail Intersection Upgrades
137,274
$
20.0%
16.0%
64.0%
5
George Freeman Trail Upgrades (Parklane to Archie Klaiber Trail)
8,990,000
$
20.0%
16.0%
64.0%
6
Wheatland Trail Twinning
3,114,377
$
20.0%
16.0%
64.0%
7
Highway 1/Wildflower Road Signalization
1,160,000
$
20.0%
38.4%
41.6%
8
Wheatland Trail & Westcreek Access
1,139,695
$
20.0%
41.0%
39.0%
9
TWP Road 244 & Lakewood Circle Intersection
766,940
$
20.0%
41.0%
39.0%
10
TWP Road 244 & Wheatland Trail Intersection
362,500
$
20.0%
41.0%
39.0%
11
Highway 1 Signal Timing
54,994
$
20.0%
41.0%
39.0%
12
George Freeman Trail Twinning (Parklane Drive to Centennial Drive)
4,338,752
$
20.0%
41.0%
39.0%
13
Highway 1 & Wildflower Road Intersection Upgrades
141,413
$
20.0%
41.0%
39.0%
14
Highway 1 & George Freeman Trail Intersection Upgrades
112,607
$
20.0%
41.0%
39.0%
15
Highway 1 & Edgefield Access Intersection Upgrades
1,403,652
$
20.0%
41.0%
39.0%
16
TWP Road 244 Upgrades (Boundary to Boundary)
12,414,609
$
20.0%
41.0%
39.0%
17
Wheatland Trail Upgrades (Boundary to Boundary)
8,276,436
$
20.0%
41.0%
39.0%
18
George Freeman Trail Twinning (Centennial Drive to Brent Blvd)
3,310,563
$
20.0%
41.0%
39.0%
19
Brent Boulevard Upgrade
1,704,790
$
20.0%
41.0%
39.0%
20
George Freeman Trail Twinning (Brent Blvd to TWP Road 244)
3,310,563
$
20.0%
41.0%
39.0%
21
Westcreek/Wildflower Arterial (Wheatland Trail to WID Canal)
7,862,586
$
20.0%
19.2%
60.8%
22
Westcreek/Wildflower Arterial (WID Canal to Wildflower Road)
6,207,305
$
20.0%
35.2%
44.8%
23
Westcreek Wildflower Arterial Bridge
3,475,615
$
20.0%
19.2%
60.8%
24
Westmount Road Extension (South of Highway 1)
2,482,922
$
20.0%
19.2%
60.8%
25
Strathford Boulevard & Township Road 244 Intersection
342,195
$
20.0%
19.2%
60.8%
26
George Freeman Trail & Township Road 244 Intersection
342,195
$
20.0%
19.2%
60.8%
27
Wheatland Trail & Hillview Drive Intersection
446,341
$
20.0%
19.2%
60.8%
28
Wheatland Trail & Brent Boulevard Intersection
446,341
$
20.0%
19.2%
60.8%
29
George Freeman Trail & Brent Boulevard Intersection
342,195
$
20.0%
19.2%
60.8%
30
George Freeman Trail & Centennial Drive Intersection
342,195
$
20.0%
19.2%
60.8%
31
Wheatland Trail & Westmount Drive Intersection
446,341
$
20.0%
19.2%
60.8%
32
Wheatland Trail & 2 Avenue Intersection
446,341
$
20.0%
19.2%
60.8%
33
Centre Street & Archie Klaiber Trail Intersection
342,195
$
20.0%
19.2%
60.8%
34
Lakeside Blvd & Archie Klaiber Trail Intersection
362,350
$
20.0%
0.0%
80.0%
100
Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
-
$
100.0%
89,041,285
$
*Allocations were determined by Town staff.
** Financial oversizing represents that portion of cost allocated to future development that is deemed beyond the
25-year review period. It is calculated using the construction start date, and then pro-rating the costs over the 25-
year review period. For example, a project constructed in year 20 of the 25-year review period will have 5 years'
of cost within the review period (i.e., 20% of cost), and 80% of cost is deemed beyond the review period (i.e.,
financial oversizing). This approach aligns with land staging which, similarly, is limited to lands within the 25-year
review period and, therefore, it represents a more equitable allocation of costs to developers. Each year as the
review period moves further out, the financial oversizing amount used to update rates will decrease....more costs
will fall within the review period, less costs beyond.
*** For the Town of Strathmore, the financial oversizing amount is also capped at 41% as this is the maximum
amount of land available for development beyond 2048.
**** Projects with deemed financial oversizing amounts were also assessed to ensure that land was available for
development (and collection) beyond the 25-year review period. If lands were not sufficiently available beyond
the 25-year review period, financial oversizing amounts were removed altogether.
***** Projects allocated 100% to future development were determined by the Town to benefit future development
entirely (i.e., no benefit to existing development).
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 $45.25 million.
However, prior to allocating these costs to benefiting areas, existing offsite levy receipts
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 20
CORVUS Business Advisors
collected from developers (if any) need to be considered in determining the residual/net
costs to developers. Town staff have advised that $0.63 million ($0.52 million + $0.11
million) in transportation levies have been applied/collected as shown in the table below.
This results in an adjusted offsite levy cost of approximately $44.61 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
Wildflower Road - Phase 1
1,786,400
$
-
$
-
$
1,786,400
$
2
Wildflower Road - Phase 2
4,500,800
$
-
$
-
$
4,500,800
$
3
Wildflower Road - Phase 3
2,480,640
$
-
$
-
$
2,480,640
$
4
Highway 1 & Wheatland Trail Intersection Upgrades
87,855
$
-
$
-
$
87,855
$
5
George Freeman Trail Upgrades (Parklane to Archie Klaiber Trail)
5,753,600
$
-
$
-
$
5,753,600
$
6
Wheatland Trail Twinning
1,993,201
$
-
$
-
$
1,993,201
$
7
Highway 1/Wildflower Road Signalization
482,560
$
-
$
-
$
482,560
$
8
Wheatland Trail & Westcreek Access
444,481
$
-
$
-
$
444,481
$
9
TWP Road 244 & Lakewood Circle Intersection
299,107
$
-
$
-
$
299,107
$
10
TWP Road 244 & Wheatland Trail Intersection
141,375
$
-
$
-
$
141,375
$
11
Highway 1 Signal Timing
21,448
$
-
$
-
$
21,448
$
12
George Freeman Trail Twinning (Parklane Drive to Centennial Drive)
1,692,113
$
-
$
8,065
$
1,684,048
$
13
Highway 1 & Wildflower Road Intersection Upgrades
55,151
$
-
$
263
$
54,888
$
14
Highway 1 & George Freeman Trail Intersection Upgrades
43,917
$
-
$
209
$
43,707
$
15
Highway 1 & Edgefield Access Intersection Upgrades
547,424
$
-
$
2,609
$
544,815
$
16
TWP Road 244 Upgrades (Boundary to Boundary)
4,841,697
$
-
$
23,077
$
4,818,621
$
17
Wheatland Trail Upgrades (Boundary to Boundary)
3,227,810
$
-
$
15,385
$
3,212,425
$
18
George Freeman Trail Twinning (Centennial Drive to Brent Blvd)
1,291,120
$
-
$
6,154
$
1,284,966
$
19
Brent Boulevard Upgrade
664,868
$
-
$
3,169
$
661,699
$
20
George Freeman Trail Twinning (Brent Blvd to TWP Road 244)
1,291,120
$
-
$
6,154
$
1,284,966
$
21
Westcreek/Wildflower Arterial (Wheatland Trail to WID Canal)
4,780,452
$
-
$
14,615
$
4,765,837
$
22
Westcreek/Wildflower Arterial (WID Canal to Wildflower Road)
2,780,873
$
-
$
11,538
$
2,769,334
$
23
Westcreek Wildflower Arterial Bridge
2,113,174
$
-
$
6,461
$
2,106,713
$
24
Westmount Road Extension (South of Highway 1)
1,509,617
$
-
$
4,615
$
1,505,001
$
25
Strathford Boulevard & Township Road 244 Intersection
208,055
$
-
$
636
$
207,419
$
26
George Freeman Trail & Township Road 244 Intersection
208,055
$
-
$
636
$
207,419
$
27
Wheatland Trail & Hillview Drive Intersection
271,376
$
-
$
830
$
270,546
$
28
Wheatland Trail & Brent Boulevard Intersection
271,376
$
-
$
830
$
270,546
$
29
George Freeman Trail & Brent Boulevard Intersection
208,055
$
-
$
636
$
207,419
$
30
George Freeman Trail & Centennial Drive Intersection
208,055
$
-
$
636
$
207,419
$
31
Wheatland Trail & Westmount Drive Intersection
271,376
$
-
$
830
$
270,546
$
32
Wheatland Trail & 2 Avenue Intersection
271,376
$
-
$
830
$
270,546
$
33
Centre Street & Archie Klaiber Trail Intersection
208,055
$
-
$
636
$
207,419
$
34
Lakeside Blvd & Archie Klaiber Trail Intersection
289,880
$
-
$
674
$
289,206
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
-
$
523,565
$
-
$
(523,565)
$
45,246,458
$
523,565
$
109,487
$
44,613,406
$
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 $44.61 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 Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 21
CORVUS Business Advisors
Total Transportation Offsite Levy Costs
Project
Costs
$89.27M
Less: Special
Grants &
Contributions
$0.23M
= Project
Balance
$89.04M
Less: Levy
Receipts
$0.63M
= Future
Development
(OSL Share)
$45.25M
= Off-site
Balance*
$44.61M
= Other
Share
$0.00M
= Existing
Development
(Muni Share)
$17.81M
= Future
Development
"Financial
Oversizing"
$25.99M
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 22
CORVUS Business Advisors
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.
Transportation Allocations to Benefitting Areas
Item
Project Description
Developer
Cost
1.5
2.5
3.5
4.5
5.5
6.5
7.5
8.5
9.5
10.5
11.5
1
Wildflower Road - Phase 1
$ 1,786,400
1
1
1
1
1
1
1
1
1
1
1
2
Wildflower Road - Phase 2
$ 4,500,800
1
1
1
1
1
1
1
1
1
1
1
3
Wildflower Road - Phase 3
$ 2,480,640
1
1
1
1
1
1
1
1
1
1
1
4
Highway 1 & Wheatland Trail Intersection Upgrades
$ 87,855
1
1
1
1
1
1
1
1
1
1
1
5
George Freeman Trail Upgrades (Parklane to Archie Klaiber Trail)
$ 5,753,600
1
1
1
1
1
1
1
1
1
1
1
6
Wheatland Trail Twinning
$ 1,993,201
1
1
1
1
1
1
1
1
1
1
1
7
Highway 1/Wildflower Road Signalization
$ 482,560
1
1
1
1
1
1
1
1
1
1
1
8
Wheatland Trail & Westcreek Access
$ 444,481
1
1
1
1
1
1
1
1
1
1
1
9
TWP Road 244 & Lakewood Circle Intersection
$ 299,107
1
1
1
1
1
1
1
1
1
1
1
10
TWP Road 244 & Wheatland Trail Intersection
$ 141,375
1
1
1
1
1
1
1
1
1
1
1
11
Highway 1 Signal Timing
$ 21,448
1
1
1
1
1
1
1
1
1
1
1
12
George Freeman Trail Twinning (Parklane Drive to Centennial Drive)
$ 1,684,048
1
1
1
1
1
1
1
1
1
1
1
13
Highway 1 & Wildflower Road Intersection Upgrades
$ 54,888
1
1
1
1
1
1
1
1
1
1
1
14
Highway 1 & George Freeman Trail Intersection Upgrades
$ 43,707
1
1
1
1
1
1
1
1
1
1
1
15
Highway 1 & Edgefield Access Intersection Upgrades
$ 544,815
1
1
1
1
1
1
1
1
1
1
1
16
TWP Road 244 Upgrades (Boundary to Boundary)
$ 4,818,621
1
1
1
1
1
1
1
1
1
1
1
17
Wheatland Trail Upgrades (Boundary to Boundary)
$ 3,212,425
1
1
1
1
1
1
1
1
1
1
1
18
George Freeman Trail Twinning (Centennial Drive to Brent Blvd)
$ 1,284,966
1
1
1
1
1
1
1
1
1
1
1
19
Brent Boulevard Upgrade
$ 661,699
1
1
1
1
1
1
1
1
1
1
1
20
George Freeman Trail Twinning (Brent Blvd to TWP Road 244)
$ 1,284,966
1
1
1
1
1
1
1
1
1
1
1
21
Westcreek/Wildflower Arterial (Wheatland Trail to WID Canal)
$ 4,765,837
1
1
1
1
1
1
1
1
1
1
1
22
Westcreek/Wildflower Arterial (WID Canal to Wildflower Road)
$ 2,769,334
1
1
1
1
1
1
1
1
1
1
1
23
Westcreek Wildflower Arterial Bridge
$ 2,106,713
1
1
1
1
1
1
1
1
1
1
1
24
Westmount Road Extension (South of Highway 1)
$ 1,505,001
1
1
1
1
1
1
1
1
1
1
1
25
Strathford Boulevard & Township Road 244 Intersection
$ 207,419
1
1
1
1
1
1
1
1
1
1
1
26
George Freeman Trail & Township Road 244 Intersection
$ 207,419
1
1
1
1
1
1
1
1
1
1
1
27
Wheatland Trail & Hillview Drive Intersection
$ 270,546
1
1
1
1
1
1
1
1
1
1
1
28
Wheatland Trail & Brent Boulevard Intersection
$ 270,546
1
1
1
1
1
1
1
1
1
1
1
29
George Freeman Trail & Brent Boulevard Intersection
$ 207,419
1
1
1
1
1
1
1
1
1
1
1
30
George Freeman Trail & Centennial Drive Intersection
$ 207,419
1
1
1
1
1
1
1
1
1
1
1
31
Wheatland Trail & Westmount Drive Intersection
$ 270,546
1
1
1
1
1
1
1
1
1
1
1
32
Wheatland Trail & 2 Avenue Intersection
$ 270,546
1
1
1
1
1
1
1
1
1
1
1
33
Centre Street & Archie Klaiber Trail Intersection
$ 207,419
1
1
1
1
1
1
1
1
1
1
1
34
Lakeside Blvd & Archie Klaiber Trail Intersection
$ 289,206
1
1
1
1
1
1
1
1
1
1
1
100 Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
$ (523,565)
1
1
1
1
1
1
1
1
44,613,406
$
* Unallocated levies collected to end-2020 are included in project #100 and credited 100% to future development and to offsite levy areas where
development occurred prior to 2020 (Areas 1, 2, 5-10).
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 23
CORVUS Business Advisors
B8. Reserve Balance
At December 31st, 2023 Town records showed a balance of $335,109 in the transportation
offsite levy account. However, this was based on an over allocation of costs to developers.
The transportation account balance should be amended to reflect a surplus of $377,710.
Transportation Offsite Levy Reserve Balance
Description
Dr
Cr
Balance
Unallocated OSL Receipts to December 31, 2020 (Opening Balance)
523,564.89
$
523,564.89
$
OSL Receipt Allocations 2021-2023
109,466.90
$
633,031.79
$
Offsite Levy Expenditure Withdrawls 2021-2023
332,481.14
$
300,550.65
$
Interest Earned/Charged
34,557.88
$
335,108.53
$
Account Balance per Muni Records December 31, 2023
335,108.53
$
OSL Share of Other Expenditures to December 31, 2023
(42,601.14)
$
377,709.67
$
Balance
377,709.67
$
*The credit of $(42,601) in 2023 stems from an overallocation of expenditures for Project #34 whose allocation to
developers is 80% (the original account withdrawal in 2023 was based on an allocation of 100%).
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 reserve funds will not be sufficient to
pay for construction of transportation infrastructure from time to time--front ending of
infrastructure will be required. A front-ender is the party that constructs and pays up front for
infrastructure that benefits other parties.
To compensate parties for capital they provide in front-ending offsite infrastructure
construction, a 5.12%7 interest allowance has been charged to the reserve when it is
forecast to be in a negative balance. Further, a 1.85%8 interest credit has been provided to
the reserve when it is forecast to be in a positive balance. The graph below highlights
activity in the transportation levy reserve over the 25-year review period.9
If necessary, an interest staging adjustment has been applied to rates (slightly positive or
slightly negative) to ensure that the forecast reserve balance at the end of the 25-year
review period always returns to break-even (i.e., developers are not charged too much
thereby providing a windfall to the Town, nor are they charged too little thereby placing an
unequitable burden on taxpayers).
7 The interest charging rate is equivalent to the 20-year debenture rate at the Alberta Capital Finance Authority at
the time of calculation which was ~5.12%.
8 The interest earning rate is equivalent to the interest earning rate within the Town various reserve accounts
which was 1.85% in 2023.
9 Note, forecast account/reserve balances are based only on offsite levy costs currently included in rates. Actual
future account/reserve balances may vary depending on oversizing costs currently excluded from rate
calculations.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 24
CORVUS Business Advisors
Anticipated Transportation Offsite Levy Reserve Balances
$(35,000,000)
$(30,000,000)
$(25,000,000)
$(20,000,000)
$(15,000,000)
$(10,000,000)
$(5,000,000)
$-
$5,000,000
$10,000,000
$15,000,000
2024
2027
2030
2033
2036
2039
2042
2045
2048
$
Year
Transportation Reserve
Reserve Balance
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 25
CORVUS Business Advisors
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)
future debenture interest associated with financing, and (c) future cost estimates. Total cost
is approximately $125.12 million (in current dollars) as outlined in the table below. Actual
construction expenditures, financing charges (if any), and future cost estimates were
provided by Town staff. 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
Westmount Subdivision Backbone
$ 1,072,039 $ -
2,604,867
$
3,676,906
$
2
5 Avenue Fire Flow Improvements
$ - $ -
1,031,885
$
1,031,885
$
3
Wildflower Reservoir Upgrades
$ - $ -
2,320,000
$
2,320,000
$
4
Decommission Brentwood Reservoir
$ - $ -
159,500
$
159,500
$
5
Upsize Centennial Drive Water Line
$ - $ -
1,740,000
$
1,740,000
$
6
Wildflower Water Line D
$ - $ -
2,537,500
$
2,537,500
$
7
Wildflower Water Line E
$ - $ -
1,740,000
$
1,740,000
$
8
Wildflower Water Line F
$ - $ -
76,283
$
76,283
$
9
Wildflower Reservoir Storage
$ - $ -
26,100,000
$
26,100,000
$
10
Wildflower Reservoir Pumping
$ - $ -
5,800,000
$
5,800,000
$
11
Heritage Water Line D
$ - $ -
2,501,250
$
2,501,250
$
12
Prairies Water Line H
$ - $ -
2,755,000
$
2,755,000
$
13
Prairies Water Line I
$ - $ -
2,682,500
$
2,682,500
$
14
Prairies Water Line J
$ - $ -
703,250
$
703,250
$
15
Prairies Water Line K
$ - $ -
1,595,000
$
1,595,000
$
16
Prairies Water Line L
$ - $ -
85,550
$
85,550
$
17
East Reservoir Fill Line
$ - $ -
5,437,500
$
5,437,500
$
18
East Reservoir Fill Line Connection
$ - $ -
1,568
$
1,568
$
19
East Reservoir Storage
$ - $ -
43,935,000
$
43,935,000
$
20
East Reservoir Pumping
$ - $ -
4,205,000
$
4,205,000
$
21
Edgefield Water Line H
$ - $ -
1,740,000
$
1,740,000
$
22
Edgefield Water Line I
$ 351,300 $ -
-
$
351,300
$
23
South Strathmore Water Line I
$ - $ -
2,030,000
$
2,030,000
$
24
South Strathmore Water Line J
$ - $ -
1,406,500
$
1,406,500
$
25
South Strathmore Water Line K
$ - $ -
1,413,750
$
1,413,750
$
26
South Strathmore Water Line L
$ - $ -
3,335,000
$
3,335,000
$
27
West Strathmore Water Line Q
$ - $ -
3,335,000
$
3,335,000
$
28
West Strathmore Water Line R
$ - $ -
2,102,500
$
2,102,500
$
29
West Strathmore PRV A
$ - $ -
159,500
$
159,500
$
30
West Strathmore PRV B
$ - $ -
159,500
$
159,500
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
$ - $ -
-
$
-
$
1,423,339
$
-
$
123,693,402
$
125,116,741
$
*Past expenditures include past financing expenditures (interest) if any.
**Costs estimates provided by Town staff.
***Estimates include engineering and contingencies.
****Missing project numbers (if any) stem from projects that were deleted. However, certain deleted projects may
be showing if a net project "credit" remains.
*****Unallocated levies collected to end-2020 (if any) are included in project #100 and credited 100% to future
development and to offsite levy areas where development occurred prior to 2020 (see Section C5).
******Offsite infrastructure definitions are described in Appendix F.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 26
CORVUS Business Advisors
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 $0.00
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 $125.12 million.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 27
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)
Reduced Project
Estimated Cost
1
Westmount Subdivision Backbone
3,676,906
$
$ - $ -
3,676,906
$
2
5 Avenue Fire Flow Improvements
1,031,885
$
$ - $ -
1,031,885
$
3
Wildflower Reservoir Upgrades
2,320,000
$
$ - $ -
2,320,000
$
4
Decommission Brentwood Reservoir
159,500
$
$ - $ -
159,500
$
5
Upsize Centennial Drive Water Line
1,740,000
$
$ - $ -
1,740,000
$
6
Wildflower Water Line D
2,537,500
$
$ - $ -
2,537,500
$
7
Wildflower Water Line E
1,740,000
$
$ - $ -
1,740,000
$
8
Wildflower Water Line F
76,283
$
$ - $ -
76,283
$
9
Wildflower Reservoir Storage
26,100,000
$
$ - $ -
26,100,000
$
10
Wildflower Reservoir Pumping
5,800,000
$
$ - $ -
5,800,000
$
11
Heritage Water Line D
2,501,250
$
$ - $ -
2,501,250
$
12
Prairies Water Line H
2,755,000
$
$ - $ -
2,755,000
$
13
Prairies Water Line I
2,682,500
$
$ - $ -
2,682,500
$
14
Prairies Water Line J
703,250
$
$ - $ -
703,250
$
15
Prairies Water Line K
1,595,000
$
$ - $ -
1,595,000
$
16
Prairies Water Line L
85,550
$
$ - $ -
85,550
$
17
East Reservoir Fill Line
5,437,500
$
$ - $ -
5,437,500
$
18
East Reservoir Fill Line Connection
1,568
$
$ - $ -
1,568
$
19
East Reservoir Storage
43,935,000
$
$ - $ -
43,935,000
$
20
East Reservoir Pumping
4,205,000
$
$ - $ -
4,205,000
$
21
Edgefield Water Line H
1,740,000
$
$ - $ -
1,740,000
$
22
Edgefield Water Line I
351,300
$
$ - $ -
351,300
$
23
South Strathmore Water Line I
2,030,000
$
$ - $ -
2,030,000
$
24
South Strathmore Water Line J
1,406,500
$
$ - $ -
1,406,500
$
25
South Strathmore Water Line K
1,413,750
$
$ - $ -
1,413,750
$
26
South Strathmore Water Line L
3,335,000
$
$ - $ -
3,335,000
$
27
West Strathmore Water Line Q
3,335,000
$
$ - $ -
3,335,000
$
28
West Strathmore Water Line R
2,102,500
$
$ - $ -
2,102,500
$
29
West Strathmore PRV A
159,500
$
$ - $ -
159,500
$
30
West Strathmore PRV B
159,500
$
$ - $ -
159,500
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
-
$
$ - $ -
-
$
125,116,741
$
-
$
-
$
125,116,741
$
C3. Year of Construction
The timing of construction is used to determine the impact of inflation on cost, the impact of
forecast reserve balances, and the estimate of financial oversizing (described in the Section
that follows). The 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 Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 28
CORVUS Business Advisors
Forecast Year of Construction
Item
Project Description
Construction Start
Year
1
Westmount Subdivision Backbone
2022
2
5 Avenue Fire Flow Improvements
2031
3
Wildflower Reservoir Upgrades
2024
4
Decommission Brentwood Reservoir
2026
5
Upsize Centennial Drive Water Line
2025
6
Wildflower Water Line D
2030
7
Wildflower Water Line E
2030
8
Wildflower Water Line F
2030
9
Wildflower Reservoir Storage
2060
10
Wildflower Reservoir Pumping
2060
11
Heritage Water Line D
2050
12
Prairies Water Line H
2050
13
Prairies Water Line I
2050
14
Prairies Water Line J
2035
15
Prairies Water Line K
2035
16
Prairies Water Line L
2035
17
East Reservoir Fill Line
2035
18
East Reservoir Fill Line Connection
2035
19
East Reservoir Storage
2040
20
East Reservoir Pumping
2040
21
Edgefield Water Line H
2030
22
Edgefield Water Line I
2019
23
South Strathmore Water Line I
2060
24
South Strathmore Water Line J
2060
25
South Strathmore Water Line K
2060
26
South Strathmore Water Line L
2060
27
West Strathmore Water Line Q
2060
28
West Strathmore Water Line R
2060
29
West Strathmore PRV A
2060
30
West Strathmore PRV B
2060
*Project costs are inflated by 3.0% per annum to the year of construction.
C4. Water Offsite Infrastructure Benefiting Parties
The water offsite infrastructure listed above will benefit three parties to varying degrees:
1. Town of Strathmore - 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 deemed cost (i.e., levyable water
infrastructure costs) which benefits future development beyond the 25-year
review period.
o In Rates - that portion of deemed 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 Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 29
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
Westmount Subdivision Backbone
3,676,906
$
20.0%
0.0%
80.0%
2
5 Avenue Fire Flow Improvements
1,031,885
$
20.0%
22.4%
57.6%
3
Wildflower Reservoir Upgrades
2,320,000
$
20.0%
0.0%
80.0%
4
Decommission Brentwood Reservoir
159,500
$
20.0%
6.4%
73.6%
5
Upsize Centennial Drive Water Line
1,740,000
$
20.0%
3.2%
76.8%
6
Wildflower Water Line D
2,537,500
$
0.0%
24.0%
76.0%
7
Wildflower Water Line E
1,740,000
$
0.0%
24.0%
76.0%
8
Wildflower Water Line F
76,283
$
0.0%
24.0%
76.0%
9
Wildflower Reservoir Storage
26,100,000
$
0.0%
41.0%
59.0%
10
Wildflower Reservoir Pumping
5,800,000
$
0.0%
41.0%
59.0%
11
Heritage Water Line D
2,501,250
$
0.0%
41.0%
59.0%
12
Prairies Water Line H
2,755,000
$
0.0%
41.0%
59.0%
13
Prairies Water Line I
2,682,500
$
0.0%
41.0%
59.0%
14
Prairies Water Line J
703,250
$
0.0%
41.0%
59.0%
15
Prairies Water Line K
1,595,000
$
0.0%
41.0%
59.0%
16
Prairies Water Line L
85,550
$
0.0%
41.0%
59.0%
17
East Reservoir Fill Line
5,437,500
$
20.0%
35.2%
44.8%
18
East Reservoir Fill Line Connection
1,568
$
20.0%
35.2%
44.8%
19
East Reservoir Storage
43,935,000
$
20.0%
41.0%
39.0%
20
East Reservoir Pumping
4,205,000
$
20.0%
41.0%
39.0%
21
Edgefield Water Line H
1,740,000
$
0.0%
24.0%
76.0%
22
Edgefield Water Line I
351,300
$
0.0%
0.0%
100.0%
23
South Strathmore Water Line I
2,030,000
$
0.0%
41.0%
59.0%
24
South Strathmore Water Line J
1,406,500
$
0.0%
41.0%
59.0%
25
South Strathmore Water Line K
1,413,750
$
0.0%
41.0%
59.0%
26
South Strathmore Water Line L
3,335,000
$
0.0%
41.0%
59.0%
27
West Strathmore Water Line Q
3,335,000
$
0.0%
41.0%
59.0%
28
West Strathmore Water Line R
2,102,500
$
0.0%
41.0%
59.0%
29
West Strathmore PRV A
159,500
$
0.0%
41.0%
59.0%
30
West Strathmore PRV B
159,500
$
0.0%
41.0%
59.0%
100
Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
-
$
100.0%
125,116,741
$
*Allocations were determined by Town staff.
** Financial oversizing represents that portion of cost allocated to future development that is deemed beyond the
25-year review period. It is calculated using the construction start date, and then pro-rating the costs over the 25-
year review period. For example, a project constructed in year 20 of the 25-year review period will have 5 years'
of cost within the review period (i.e., 20% of cost), and 80% of cost is deemed beyond the review period (i.e.,
financial oversizing). This approach aligns with land staging which, similarly, is limited to lands within the 25-year
review period and, therefore, it represents a more equitable allocation of costs to developers. Each year as the
review period moves further out, the financial oversizing amount used to update rates will decrease....more costs
will fall within the review period, less costs beyond.
*** For the Town of Strathmore, the financial oversizing amount is also capped at 41% as this is the maximum
amount of land available for development beyond 2048.
**** Projects with deemed financial oversizing amounts were also assessed to ensure that land was available for
development (and collection) beyond the 25-year review period. If lands were not sufficiently available beyond
the 25-year review period, financial oversizing amounts were removed altogether.
***** Projects allocated 100% to future development were determined by the Town to benefit future development
entirely (i.e., no benefit to existing development).
C5. Existing Receipts & Adjusted Levy Cost
Using the offsite levy share percentages shown in the previous section and applying those
percentages to project costs results in an offsite levy cost of approximately $66.18 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 $2.27 million ($2.08 million + $0.19
million) in water levies have been applied/collected as shown in the table below. This results
in an adjusted offsite levy cost of approximately $63.90 million.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 30
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
Westmount Subdivision Backbone
2,941,525
$
$ -
5,144
$
2,936,381
$
2
5 Avenue Fire Flow Improvements
594,366
$
$ -
1,444
$
592,922
$
3
Wildflower Reservoir Upgrades
1,856,000
$
$ -
3,246
$
1,852,754
$
4
Decommission Brentwood Reservoir
117,392
$
$ -
223
$
117,169
$
5
Upsize Centennial Drive Water Line
1,336,320
$
$ -
2,434
$
1,333,886
$
6
Wildflower Water Line D
1,928,500
$
$ -
4,438
$
1,924,062
$
7
Wildflower Water Line E
1,322,400
$
$ -
3,043
$
1,319,357
$
8
Wildflower Water Line F
57,975
$
$ -
133
$
57,841
$
9
Wildflower Reservoir Storage
15,399,000
$
$ -
45,643
$
15,353,357
$
10
Wildflower Reservoir Pumping
3,422,000
$
$ -
10,143
$
3,411,857
$
11
Heritage Water Line D
1,475,738
$
$ -
4,374
$
1,471,363
$
12
Prairies Water Line H
1,625,450
$
$ -
4,818
$
1,620,632
$
13
Prairies Water Line I
1,582,675
$
$ -
4,691
$
1,577,984
$
14
Prairies Water Line J
414,918
$
$ -
1,230
$
413,688
$
15
Prairies Water Line K
941,050
$
$ -
2,789
$
938,261
$
16
Prairies Water Line L
50,475
$
$ -
150
$
50,325
$
17
East Reservoir Fill Line
2,436,000
$
$ -
7,607
$
2,428,393
$
18
East Reservoir Fill Line Connection
702
$
$ -
2
$
700
$
19
East Reservoir Storage
17,134,650
$
$ -
61,466
$
17,073,184
$
20
East Reservoir Pumping
1,639,950
$
$ -
5,883
$
1,634,067
$
21
Edgefield Water Line H
1,322,400
$
$ -
3,043
$
1,319,357
$
22
Edgefield Water Line I
351,300
$
$ -
1,775
$
349,525
$
23
South Strathmore Water Line I
1,197,700
$
$ -
3,550
$
1,194,150
$
24
South Strathmore Water Line J
829,835
$
$ -
2,460
$
827,375
$
25
South Strathmore Water Line K
834,113
$
$ -
2,472
$
831,640
$
26
South Strathmore Water Line L
1,967,650
$
$ -
5,832
$
1,961,818
$
27
West Strathmore Water Line Q
1,967,650
$
$ -
5,832
$
1,961,818
$
28
West Strathmore Water Line R
1,240,475
$
$ -
3,677
$
1,236,798
$
29
West Strathmore PRV A
94,105
$
$ -
279
$
93,826
$
30
West Strathmore PRV B
94,105
$
$ -
279
$
93,826
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
-
$
$ 2,076,714
-
$
(2,076,714)
$
66,176,417
$
2,076,714
$
198,099
$
63,901,604
$
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 $63.90 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 Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 31
CORVUS Business Advisors
Total Water Offsite Levy Costs
Project
Costs
$125.12M
Less: Special
Grants &
Contributions
$0.00M
= Project
Balance
$125.12M
Less: Levy
Receipts
Applied
$2.27M
= Future
Development
(OSL Share)
$66.18M
= Off-site
Balance*
$63.90M
= Other
Share
$0.00M
= Existing
Development
(Muni Share)
$12.50M
= Future
Development
"Financial
Oversizing"
$46.44M
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 32
CORVUS Business Advisors
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.
Water Allocations to Benefitting Areas
Item
Project Description
Developer
Cost
1.5
2.5
3.5
4.5
5.5
6.5
7.5
8.5
9.5
10.5
11.5
1
Westmount Subdivision Backbone
$ 2,936,381
1
1
1
1
1
1
1
1
1
1
1
2
5 Avenue Fire Flow Improvements
$ 592,922
1
1
1
1
1
1
1
1
1
1
1
3
Wildflower Reservoir Upgrades
$ 1,852,754
1
1
1
1
1
1
1
1
1
1
1
4
Decommission Brentwood Reservoir
$ 117,169
1
1
1
1
1
1
1
1
1
1
1
5
Upsize Centennial Drive Water Line
$ 1,333,886
1
1
1
1
1
1
1
1
1
1
1
6
Wildflower Water Line D
$ 1,924,062
1
1
1
1
1
1
1
1
1
1
1
7
Wildflower Water Line E
$ 1,319,357
1
1
1
1
1
1
1
1
1
1
1
8
Wildflower Water Line F
$ 57,841
1
1
1
1
1
1
1
1
1
1
1
9
Wildflower Reservoir Storage
$ 15,353,357
1
1
1
1
1
1
1
1
1
1
1
10
Wildflower Reservoir Pumping
$ 3,411,857
1
1
1
1
1
1
1
1
1
1
1
11
Heritage Water Line D
$ 1,471,363
1
1
1
1
1
1
1
1
1
1
1
12
Prairies Water Line H
$ 1,620,632
1
1
1
1
1
1
1
1
1
1
1
13
Prairies Water Line I
$ 1,577,984
1
1
1
1
1
1
1
1
1
1
1
14
Prairies Water Line J
$ 413,688
1
1
1
1
1
1
1
1
1
1
1
15
Prairies Water Line K
$ 938,261
1
1
1
1
1
1
1
1
1
1
1
16
Prairies Water Line L
$ 50,325
1
1
1
1
1
1
1
1
1
1
1
17
East Reservoir Fill Line
$ 2,428,393
1
1
1
1
1
1
1
1
1
1
1
18
East Reservoir Fill Line Connection
$ 700
1
1
1
1
1
1
1
1
1
1
1
19
East Reservoir Storage
$ 17,073,184
1
1
1
1
1
1
1
1
1
1
1
20
East Reservoir Pumping
$ 1,634,067
1
1
1
1
1
1
1
1
1
1
1
21
Edgefield Water Line H
$ 1,319,357
1
1
1
1
1
1
1
1
1
1
1
22
Edgefield Water Line I
$ 349,525
1
1
1
1
1
1
1
1
1
1
1
23
South Strathmore Water Line I
$ 1,194,150
1
1
1
1
1
1
1
1
1
1
1
24
South Strathmore Water Line J
$ 827,375
1
1
1
1
1
1
1
1
1
1
1
25
South Strathmore Water Line K
$ 831,640
1
1
1
1
1
1
1
1
1
1
1
26
South Strathmore Water Line L
$ 1,961,818
1
1
1
1
1
1
1
1
1
1
1
27
West Strathmore Water Line Q
$ 1,961,818
1
1
1
1
1
1
1
1
1
1
1
28
West Strathmore Water Line R
$ 1,236,798
1
1
1
1
1
1
1
1
1
1
1
29
West Strathmore PRV A
$ 93,826
1
1
1
1
1
1
1
1
1
1
1
30
West Strathmore PRV B
$ 93,826
1
1
1
1
1
1
1
1
1
1
1
100 Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
$ (2,076,714)
1
1
1
1
1
1
1
1
63,901,604
$
* Unallocated levies collected to end-2020 are included in project #100 and credited 100% to future development and to offsite levy areas where
development occurred prior to 2020 (Areas 1, 2, 5-10).
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 33
CORVUS Business Advisors
C8. Reserve Balance
At December 31st, 2023 Town records showed a balance of $1,300,469 in the water offsite
levy account. However, this was based on an under allocation of costs to developers. The
water account balance should be amended to reflect a surplus of $1,163,577.
Water Offsite Levy Reserve Balance
Description
Dr
Cr
Balance
Unallocated OSL Receipts to December 31, 2020 (Opening Balance)
2,076,714.04
$
2,076,714.04
$
OSL Receipt Allocations 2021-2023
198,099.06
$
2,274,813.10
$
Offsite Levy Expenditure Withdrawls 2021-2023
1,072,040.47
$
1,202,772.63
$
Interest Earned/Charged
97,696.08
$
1,300,468.71
$
Account Balance per Muni Records December 31, 2023
1,300,468.71
$
OSL Share of Other Expenditures to December 31, 2023
136,892.20
$
1,163,576.51
$
Balance
1,163,576.51
$
*The credit of $136,892 in 2023 stems from: (i) an overallocation of expenditures for Project #1 whose allocation
to developers is 80% (the original account withdrawals in 2021 and 2022 were based on an allocation of 100%),
and (ii) front-ending associated with Project #22.
C9. Development and Water Infrastructure Staging Impacts
Water offsite infrastructure will be constructed in staged fashion over the 25-year review
period. We have reviewed the availability of offsite levy funds to meet these construction
requirements and found that offsite levy reserve funds will not be sufficient to pay for
construction of water infrastructure from time to time--front ending of infrastructure will be
required. A front-ender is the party that constructs and pays up front for infrastructure that
benefits other parties.
To compensate parties for capital they provide in front-ending offsite infrastructure
construction, a 5.12%10 interest allowance has been charged to the reserve when it is
forecast to be in a negative balance. Further, a 1.85%11 interest credit has been provided to
the reserve when it is forecast to be in a positive balance. The graph below highlights
activity in the water levy reserve over the 25-year review period.12
If necessary, an interest staging adjustment has been applied to rates (slightly positive or
slightly negative) to ensure that the forecast reserve balance at the end of the 25-year
review period always returns to break-even (i.e., developers are not charged too much
thereby providing a windfall to the Town, nor are they charged too little thereby placing an
unequitable burden on taxpayers).
10 The interest charging rate is equivalent to the 20-year debenture rate at the Alberta Capital Finance Authority
at the time of calculation which was ~5.12%.
11 The interest earning rate is equivalent to the interest earning rate within the Town various reserve accounts
which was 1.85% in 2023.
12 Note, forecast account/reserve balances are based only on offsite levy costs currently included in rates. Actual
future account/reserve balances may vary depending on oversizing costs currently excluded from rate
calculations.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 34
CORVUS Business Advisors
Anticipated Water Offsite Levy Reserve Balances
$(20,000,000)
$(15,000,000)
$(10,000,000)
$(5,000,000)
$-
$5,000,000
$10,000,000
$15,000,000
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
$
Year
Water Reserve
Reserve Balance
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 35
CORVUS Business Advisors
APPENDIX D: SANITARY
D1. Sanitary Offsite Infrastructure
In order to support future growth, sanitary offsite infrastructure is required. The estimated
cost of this infrastructure is based upon: (a) actual construction costs to the cut-off date, (b)
future debenture interest associated with financing, and (c) future cost estimates. Total cost
is approximately $64.68 million (in current dollars) as outlined in the table below. Actual
construction expenditures, financing charges (if any), and future cost estimates were
provided by Town staff. 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 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
Central Trunk Sewer Upgrade (Phase 1)
$ 353,474
-
$
3,480,000
$
3,833,474
$
2
Central Trunk Sewer Upgrade (Phase 2)
$ -
-
$
916,653
$
916,653
$
3
Central Trunk Sewer Upgrade (Phase 3)
$ -
-
$
1,024,067
$
1,024,067
$
4
Central Trunk Sewre Upgrade (Phase 4)
$ -
-
$
2,465,000
$
2,465,000
$
5
West Trunk
$ -
-
$
1,087,500
$
1,087,500
$
6
Orchard Park Trunk
$ -
-
$
906,250
$
906,250
$
7
Ranch Forcemain Twinning
$ -
-
$
420,500
$
420,500
$
8
Ranch Lift Station Upgrade
$ -
-
$
464,000
$
464,000
$
9
Lakewood Meadows Trunk (West Boundary to Lift Station)
$ -
-
$
1,015,000
$
1,015,000
$
10
Lakewood Meadows Forcemain (Lift Station to 55M)
$ -
-
$
3,190,000
$
3,190,000
$
11
North Hill Forcemain
$ -
-
$
5,945,000
$
5,945,000
$
12
North Hill Lift Station
$ -
-
$
5,147,500
$
5,147,500
$
13
Prairie's Edge Forcemain
$ -
-
$
6,525,000
$
6,525,000
$
14
Prairie's Edge Lift Station
$ -
-
$
5,147,500
$
5,147,500
$
15
West Strathmore Trunk A
$ -
-
$
1,740,000
$
1,740,000
$
16
West Strathmore Trunk B
$ -
-
$
1,957,500
$
1,957,500
$
17
West Strathmore Forcemain
$ -
-
$
8,772,500
$
8,772,500
$
18
West Strathmore Lift Station
$ -
-
$
13,485,000
$
13,485,000
$
19
BTO Effluent Pump Station Upgrade
$ -
-
$
641,784
$
641,784
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
$ -
-
$
-
$
-
$
353,474
$
-
$
64,330,754
$
64,684,228
$
*Past expenditures include past financing expenditures (interest) if any.
**Costs estimates provided by Town staff.
***Estimates include engineering and contingencies.
****Missing project numbers (if any) stem from projects that were deleted. However, certain deleted projects may
be showing if a net project "credit" remains.
*****Unallocated levies collected to end-2020 (if any) are included in project #100 and credited 100% to future
development and to offsite levy areas where development occurred prior to 2020 (see Section D5).
******Offsite infrastructure definitions are described in Appendix F.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 36
CORVUS Business Advisors
D2. Sanitary 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 $0.00 million in
special ear-marked grants and contributions for sanitary 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 $64.68 million.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 37
CORVUS Business Advisors
Special Grants and Contributions for Sanitary Offsite Infrastructure
Item
Project Description
Total Project
Estimated Cost
Special Provincial
Grants
(Historic &
Future)
Developer
Agreement
Contributions
(Historic &
Future)
Reduced Project
Estimated Cost
1
Central Trunk Sewer Upgrade (Phase 1)
3,833,474
$
-
$
-
$
3,833,474
$
2
Central Trunk Sewer Upgrade (Phase 2)
916,653
$
-
$
-
$
916,653
$
3
Central Trunk Sewer Upgrade (Phase 3)
1,024,067
$
-
$
-
$
1,024,067
$
4
Central Trunk Sewre Upgrade (Phase 4)
2,465,000
$
-
$
-
$
2,465,000
$
5
West Trunk
1,087,500
$
-
$
-
$
1,087,500
$
6
Orchard Park Trunk
906,250
$
-
$
-
$
906,250
$
7
Ranch Forcemain Twinning
420,500
$
-
$
-
$
420,500
$
8
Ranch Lift Station Upgrade
464,000
$
-
$
-
$
464,000
$
9
Lakewood Meadows Trunk (West Boundary to Lift Station)
1,015,000
$
-
$
-
$
1,015,000
$
10
Lakewood Meadows Forcemain (Lift Station to 55M)
3,190,000
$
-
$
-
$
3,190,000
$
11
North Hill Forcemain
5,945,000
$
-
$
-
$
5,945,000
$
12
North Hill Lift Station
5,147,500
$
-
$
-
$
5,147,500
$
13
Prairie's Edge Forcemain
6,525,000
$
-
$
-
$
6,525,000
$
14
Prairie's Edge Lift Station
5,147,500
$
-
$
-
$
5,147,500
$
15
West Strathmore Trunk A
1,740,000
$
-
$
-
$
1,740,000
$
16
West Strathmore Trunk B
1,957,500
$
-
$
-
$
1,957,500
$
17
West Strathmore Forcemain
8,772,500
$
-
$
-
$
8,772,500
$
18
West Strathmore Lift Station
13,485,000
$
-
$
-
$
13,485,000
$
19
BTO Effluent Pump Station Upgrade
641,784
$
-
$
-
$
641,784
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
-
$
-
$
-
$
-
$
64,684,228
$
-
$
-
$
64,684,228
$
D3. Year of Construction
The timing of construction is used to determine the impact of inflation on cost, the impact of
forecast reserve balances, and the estimate of financial oversizing (described in the Section
that follows). The 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
Central Trunk Sewer Upgrade (Phase 1)
2022
2
Central Trunk Sewer Upgrade (Phase 2)
2029
3
Central Trunk Sewer Upgrade (Phase 3)
2032
4
Central Trunk Sewre Upgrade (Phase 4)
2037
5
West Trunk
2032
6
Orchard Park Trunk
2034
7
Ranch Forcemain Twinning
2032
8
Ranch Lift Station Upgrade
2032
9
Lakewood Meadows Trunk (West Boundary to Lift Station)
2032
10
Lakewood Meadows Forcemain (Lift Station to 55M)
2030
11
North Hill Forcemain
2040
12
North Hill Lift Station
2040
13
Prairie's Edge Forcemain
2040
14
Prairie's Edge Lift Station
2040
15
West Strathmore Trunk A
2062
16
West Strathmore Trunk B
2062
17
West Strathmore Forcemain
2060
18
West Strathmore Lift Station
2060
19
BTO Effluent Pump Station Upgrade
2032
*Project costs are inflated by 3.0% per annum to the year of construction.
D4. Sanitary Offsite Infrastructure Benefiting Parties
The sanitary offsite infrastructure listed above will benefit three parties to varying degrees:
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 38
CORVUS Business Advisors
1. Town of Strathmore - a portion of the sanitary 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 deemed cost (i.e., levyable sanitary
infrastructure costs) which benefits future development beyond the 25-year
review period.
o In Rates - that portion of deemed cost (i.e., levyable sanitary
infrastructure costs) which benefits future development within the 25-
year review period.
The table below outlines the allocation of sanitary offsite levy infrastructure costs to
benefiting parties.
Allocation of Sanitary 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
Central Trunk Sewer Upgrade (Phase 1)
3,833,474
$
20.0%
0.0%
80.0%
2
Central Trunk Sewer Upgrade (Phase 2)
916,653
$
20.0%
16.0%
64.0%
3
Central Trunk Sewer Upgrade (Phase 3)
1,024,067
$
20.0%
25.6%
54.4%
4
Central Trunk Sewre Upgrade (Phase 4)
2,465,000
$
20.0%
41.0%
39.0%
5
West Trunk
1,087,500
$
0.0%
100.0%
6
Orchard Park Trunk
906,250
$
0.0%
100.0%
7
Ranch Forcemain Twinning
420,500
$
0.0%
32.0%
68.0%
8
Ranch Lift Station Upgrade
464,000
$
0.0%
32.0%
68.0%
9
Lakewood Meadows Trunk (West Boundary to Lift Station)
1,015,000
$
0.0%
32.0%
68.0%
10
Lakewood Meadows Forcemain (Lift Station to 55M)
3,190,000
$
0.0%
24.0%
76.0%
11
North Hill Forcemain
5,945,000
$
0.0%
41.0%
59.0%
12
North Hill Lift Station
5,147,500
$
0.0%
41.0%
59.0%
13
Prairie's Edge Forcemain
6,525,000
$
0.0%
41.0%
59.0%
14
Prairie's Edge Lift Station
5,147,500
$
0.0%
41.0%
59.0%
15
West Strathmore Trunk A
1,740,000
$
0.0%
41.0%
59.0%
16
West Strathmore Trunk B
1,957,500
$
0.0%
41.0%
59.0%
17
West Strathmore Forcemain
8,772,500
$
0.0%
41.0%
59.0%
18
West Strathmore Lift Station
13,485,000
$
0.0%
41.0%
59.0%
19
BTO Effluent Pump Station Upgrade
641,784
$
20.0%
25.6%
54.4%
100
Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
-
$
100.0%
64,684,228
$
*Allocations were determined by Town staff.
** Financial oversizing represents that portion of cost allocated to future development that is deemed beyond the
25-year review period. It is calculated using the construction start date, and then pro-rating the costs over the 25-
year review period. For example, a project constructed in year 20 of the 25-year review period will have 5 years'
of cost within the review period (i.e., 20% of cost), and 80% of cost is deemed beyond the review period (i.e.,
financial oversizing). This approach aligns with land staging which, similarly, is limited to lands within the 25-year
review period and, therefore, it represents a more equitable allocation of costs to developers. Each year as the
review period moves further out, the financial oversizing amount used to update rates will decrease....more costs
will fall within the review period, less costs beyond.
*** For the Town of Strathmore, the financial oversizing amount is also capped at 41% as this is the maximum
amount of land available for development beyond 2048.
**** Projects with deemed financial oversizing amounts were also assessed to ensure that land was available for
development (and collection) beyond the 25-year review period. If lands were not sufficiently available beyond
the 25-year review period, financial oversizing amounts were removed altogether.
***** Projects allocated 100% to future development were determined by the Town to benefit future development
entirely (i.e., no benefit to existing development).
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 39
CORVUS Business Advisors
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 $39.98 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 $1.40 million ($1.28 million + $0.12
million) in sanitary levies have been applied/collected as shown in the table below. This
results in an adjusted offsite levy cost of approximately $38.58 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
Central Trunk Sewer Upgrade (Phase 1)
3,066,779
$
-
$
6,498
$
3,060,281
$
2
Central Trunk Sewer Upgrade (Phase 2)
586,658
$
-
$
1,572
$
585,086
$
3
Central Trunk Sewer Upgrade (Phase 3)
557,093
$
-
$
1,756
$
555,337
$
4
Central Trunk Sewre Upgrade (Phase 4)
961,350
$
-
$
4,227
$
957,123
$
5
West Trunk
1,087,500
$
-
$
1,612
$
1,085,888
$
6
Orchard Park Trunk
906,250
$
-
$
1,344
$
904,906
$
7
Ranch Forcemain Twinning
285,940
$
-
$
945
$
284,995
$
8
Ranch Lift Station Upgrade
315,520
$
-
$
1,043
$
314,477
$
9
Lakewood Meadows Trunk (West Boundary to Lift Station)
690,200
$
-
$
1,507
$
688,693
$
10
Lakewood Meadows Forcemain (Lift Station to 55M)
2,424,400
$
-
$
4,736
$
2,419,664
$
11
North Hill Forcemain
3,507,550
$
-
$
8,043
$
3,499,507
$
12
North Hill Lift Station
3,037,025
$
-
$
6,964
$
3,030,061
$
13
Prairie's Edge Forcemain
3,849,750
$
-
$
21,038
$
3,828,712
$
14
Prairie's Edge Lift Station
3,037,025
$
-
$
16,597
$
3,020,428
$
15
West Strathmore Trunk A
1,026,600
$
-
$
2,583
$
1,024,017
$
16
West Strathmore Trunk B
1,154,925
$
-
$
2,906
$
1,152,019
$
17
West Strathmore Forcemain
5,175,775
$
-
$
13,025
$
5,162,750
$
18
West Strathmore Lift Station
7,956,150
$
-
$
20,021
$
7,936,129
$
19
BTO Effluent Pump Station Upgrade
349,130
$
-
$
1,053
$
348,077
$
100
Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
-
$
1,282,399
$
-
$
(1,282,399)
$
39,975,620
$
1,282,399
$
117,471
$
38,575,750
$
D6. Summary of Sanitary Offsite Levy Cost Flow-through
As shown in the figure below, the total costs for sanitary infrastructure that forms the basis of
the rate is approximately $38.58 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).
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 40
CORVUS Business Advisors
Total Sanitary Offsite Levy Costs
Project
Costs
$64.68M
Less: Special
Grants &
Contributions
$0.00M
= Project
Balance
$64.68M
Less: Levy
Receipts
$1.40M
= Future
Development
(OSL Share)
$39.98M
= Off-site
Balance*
$38.58M
= Other
Share
$0.ooM
= Existing
Development
(Muni Share)
$1.78M
= Future
Development
"Financial
Oversizing"
$22.93M
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 41
CORVUS Business Advisors
D7. Sanitary Infrastructure Benefiting Areas
Net developer costs for each project have been allocated to multiple benefiting offsite levy area (see tables below).
Allocations are denoted with a "1" below applicable area numbers. Benefiting areas were determined by Town staff. The
lands anticipated to develop over the 25-years in each offsite levy benefitting area are used to determine rates.
Sanitary Allocations to Benefitting Areas
Item
Project Description
Developer
Cost
1.5
2.5
3.5
4.5
5.5
6.5
7.5
8.5
9.5
10.5
11.5
1
Central Trunk Sewer Upgrade (Phase 1)
$ 3,060,281
1
1
1
1
1
1
2
Central Trunk Sewer Upgrade (Phase 2)
$ 585,086
1
1
1
1
1
3
Central Trunk Sewer Upgrade (Phase 3)
$ 555,337
1
1
1
1
1
4
Central Trunk Sewre Upgrade (Phase 4)
$ 957,123
1
1
1
1
1
5
West Trunk
$ 1,085,888
1
6
Orchard Park Trunk
$ 904,906
1
7
Ranch Forcemain Twinning
$ 284,995
1
1
1
8
Ranch Lift Station Upgrade
$ 314,477
1
1
1
9
Lakewood Meadows Trunk (West Boundary to Lift Station)
$ 688,693
1
10
Lakewood Meadows Forcemain (Lift Station to 55M)
$ 2,419,664
1
11
North Hill Forcemain
$ 3,499,507
1
1
12
North Hill Lift Station
$ 3,030,061
1
1
13
Prairie's Edge Forcemain
$ 3,828,712
1
1
14
Prairie's Edge Lift Station
$ 3,020,428
1
1
15
West Strathmore Trunk A
$ 1,024,017
1
16
West Strathmore Trunk B
$ 1,152,019
1
17
West Strathmore Forcemain
$ 5,162,750
1
18
West Strathmore Lift Station
$ 7,936,129
1
19
BTO Effluent Pump Station Upgrade
$ 348,077
1
1
1
1
1
1
1
1
1
1
1
100 Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
$ (1,282,399)
1
1
1
1
1
1
1
1
1
38,575,750
$
* Unallocated levies collected to end-2020 are included in project #100 and credited 100% to future development and to offsite levy areas where
development occurred prior to 2020 (Areas 1, 2, 5-10).
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
CORVUS Business Advisors
D8. Reserve Balance
At December 31st, 2023 Town records showed a balance of $1,114,633 in the sanitary
offsite levy account. However, this was based on an over allocation of costs to developers.
The sanitary account balance should be amended to reflect a surplus of $1,185,328.
Sanitary Offsite Levy Reserve Balance
Description
Dr
Cr
Balance
Unallocated OSL Receipts to December 31, 2020 (Opening Balance)
1,282,398.53
$
1,282,398.53
$
OSL Receipt Allocations 2021-2023
117,471.08
$
1,399,869.61
$
Offsite Levy Expenditure Withdrawls 2021-2023
353,474.21
$
1,046,395.40
$
Interest Earned/Charged
68,237.52
$
1,114,632.92
$
Account Balance per Muni Records December 31, 2023
1,114,632.92
$
OSL Share of Other Expenditures to December 31, 2023
(70,694.80)
$
1,185,327.72
$
Balance
1,185,327.72
$
*The credit of $(70,695) in 2023 stems from an overallocation of expenditures for Project #1 whose allocation to
developers is 80% (the original account withdrawal in 2022 was based on an allocation of 100%).
D9. Development and Sanitary Infrastructure Staging Impacts
Sanitary offsite infrastructure will be constructed in staged fashion over the 25-year
development period. We have reviewed the availability of offsite levy funds to meet these
construction requirements and found that offsite levy reserve funds will not be sufficient to
pay for construction of sanitary infrastructure from time to time--front ending of
infrastructure will be required. A front-ender is the party that constructs and pays up front for
infrastructure that benefits other parties.
To compensate parties for capital they provide in front-ending offsite infrastructure
construction, a 5.12%13 interest allowance has been charged to the reserve when it is
forecast to be in a negative balance. Further, a 1.85%14 interest credit has been provided to
the reserve when it is forecast to be in a positive balance. The graph below highlights
activity in the sanitary levy reserve over the 25-year review period.15
If necessary, an interest staging adjustment has been applied to rates (slightly positive or
slightly negative) to ensure that the forecast reserve balance at the end of the 25-year
review period always returns to break-even (i.e., developers are not charged too much
thereby providing a windfall to the Town, nor are they charged too little thereby placing an
unequitable burden on taxpayers).
13 The interest charging rate is equivalent to the 20-year debenture rate at the Alberta Capital Finance Authority
at the time of calculation which was ~5.12%.
14 The interest earning rate is equivalent to the interest earning rate within the Town various reserve accounts
which was 1.85% in 2023.
15 Note, forecast account/reserve balances are based only on offsite levy costs currently included in rates. Actual
future account/reserve balances may vary depending on oversizing costs currently excluded from rate
calculations.
Town of Strathmore: Offsite Levy Rates Review
October 24th, 2023
CORVUS Business Advisors
Anticipated Sanitary Offsite Levy Reserve Balances
$(20,000,000)
$(15,000,000)
$(10,000,000)
$(5,000,000)
$-
$5,000,000
$10,000,000
2024
2027
2030
2033
2036
2039
2042
2045
2048
$
Year
Sanitary Reserve
Reserve Balance
Town of Strathmore: Offsite Levy Rates Review
October 24th, 2023
CORVUS Business Advisors
APPENDIX E: STORMWATER
E1. Stormwater Offsite Infrastructure
In order to support future growth, stormwater offsite infrastructure is required. The
estimated cost of this infrastructure is based upon: (a) actual construction costs to the cut-off
date, (b) debenture interest associated with financing, and (c) future cost estimates. Total
cost is approximately $20.75 million (in current dollars) as outlined in the table below.
Actual construction expenditures, financing charges (if any), and future cost estimates were
provided by Town staff. 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 Stormwater 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
Stormpond 7 (Phase 1)
$ -
-
$
1,624,000
$
1,624,000
$
2
Stormpond 7 (Phase 2)
$ -
-
$
984,550
$
984,550
$
3
Stormpond 7 (Phase 3)
$ -
-
$
6,749,750
$
6,749,750
$
4
CSMI Projects
$ 39,593
-
$
1,450,000
$
1,489,593
$
5
WID Capital Levy
$ -
-
$
9,904,583
$
9,904,583
$
100 Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
$ -
-
$
-
$
-
$
39,593
$
-
$
20,712,883
$
20,752,476
$
*Past expenditures include past financing expenditures (interest) if any.
**Costs estimates provided by Town staff.
***Estimates include engineering and contingencies.
****Missing project numbers (if any) stem from projects that were deleted. However, certain deleted projects may
be showing if a net project "credit" remains.
*****Unallocated levies collected to end-2020 (if any) are included in project #100 and credited 100% to future
development and to offsite levy areas where development occurred prior to 2020 (see Section E5).
******Offsite infrastructure definitions are described in Appendix F.
Town of Strathmore: Offsite Levy Rates Review
October 24th, 2023
CORVUS Business Advisors
E1.
Stormwater 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/may receive $0.00 million in
special grants and contributions for stormwater offsite levy infrastructure as shown in the
table below (note, if the Town receives additional grants or contributions in the future, it will
be reflected in one of the annual updates and rates adjusted accordingly). The result is that
the total reduced project estimated cost is $20.75 million.
Special Grants and Contributions for Stormwater Offsite Infrastructure
Item
Project Description
Total Project
Estimated Cost
Special Provincial
Grants
(Historic & Future)
Developer
Agreement
Contributions
(Historic & Future)
Reduced Project
Estimated Cost
1
Stormpond 7 (Phase 1)
1,624,000
$
-
$
-
$
1,624,000
$
2
Stormpond 7 (Phase 2)
984,550
$
-
$
-
$
984,550
$
3
Stormpond 7 (Phase 3)
6,749,750
$
-
$
-
$
6,749,750
$
4
CSMI Projects
1,489,593
$
-
$
-
$
1,489,593
$
5
WID Capital Levy
9,904,583
$
-
$
-
$
9,904,583
$
100 Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
-
$
-
$
-
$
-
$
20,752,476
$
-
$
-
$
20,752,476
$
E2.
Stormwater Infrastructure Staging
The timing of construction is used to determine the impact of inflation on cost, and the
impact of forecast account balances. The Town anticipates construction of offsite
Town of Strathmore: Offsite Levy Rates Review
October 24th, 2023
CORVUS Business Advisors
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.
Stormwater Infrastructure Staging
Item
Project Description
Construction
Start Year
1
Stormpond 7 (Phase 1)
2029
2
Stormpond 7 (Phase 2)
2032
3
Stormpond 7 (Phase 3)
2035
4
CSMI Projects
2021
5
WID Capital Levy
2020
*Project costs are inflated by 3.0% per annum to the year of construction.
E3.
Stormwater Offsite Infrastructure Benefiting Parties
The stormwater offsite infrastructure listed above will benefit three parties to varying
degrees:
4. Town of Strathmore - a portion of the sanitary 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).
5. Other Stakeholders - other municipalities that benefit from the infrastructure.
6. Future Development:
o Financial Oversizing - that portion of deemed cost (i.e., levyable sanitary
infrastructure costs) which benefits future development beyond the 25-year
review period.
o In Rates - that portion of deemed cost (i.e., levyable sanitary
infrastructure costs) which benefits future development within the 25-
year review period.
The table below outlines the allocation of stormwater offsite levy infrastructure costs to
benefiting parties. Percentage allocations are determined after reducing stormwater offsite
levy infrastructure costs for grants described earlier.
Allocation of Stormwater 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
Stormpond 7 (Phase 1)
1,624,000
$
0.0%
20.0%
80.0%
2
Stormpond 7 (Phase 2)
984,550
$
0.0%
32.0%
68.0%
3
Stormpond 7 (Phase 3)
6,749,750
$
0.0%
41.0%
59.0%
4
CSMI Projects
1,489,593
$
0.0%
0.0%
100.0%
5
WID Capital Levy
9,904,583
$
0.0%
0.0%
100.0%
100 Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
-
$
100.0%
20,752,476
$
*Allocations were determined by Town staff.
** Financial oversizing represents that portion of cost allocated to future development that is deemed beyond the
25-year review period. It is calculated using the construction start date, and then pro-rating the costs over the 25-
year review period. For example, a project constructed in year 20 of the 25-year review period will have 5 years'
Town of Strathmore: Offsite Levy Rates Review
October 24th, 2023
CORVUS Business Advisors
of cost within the review period (i.e., 20% of cost), and 80% of cost is deemed beyond the review period (i.e.,
financial oversizing). This approach aligns with land staging which, similarly, is limited to lands within the 25-year
review period and, therefore, it represents a more equitable allocation of costs to developers. Each year as the
review period moves further out, the financial oversizing amount used to update rates will decrease....more costs
will fall within the review period, less costs beyond.
*** For the Town of Strathmore, the financial oversizing amount is also capped at 41% as this is the maximum
amount of land available for development beyond 2048.
**** Projects with deemed financial oversizing amounts were also assessed to ensure that land was available for
development (and collection) beyond the 25-year review period. If lands were not sufficiently available beyond
the 25-year review period, financial oversizing amounts were removed altogether.
***** Projects allocated 100% to future development were determined by the Town to benefit future development
entirely (i.e., no benefit to existing development).
E4.
Existing Receipts
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 $17.35 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. Approximately $1.72million ($1.68 million + $0.04 million) in stormwater levies
has been collected as shown in the table below. This results in an adjusted offsite levy cost
of approximately $15.63 million.
Offsite Levy Funds Collected 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
Stormpond 7 (Phase 1)
1,299,200
$
-
$
-
$
1,299,200
$
2
Stormpond 7 (Phase 2)
669,494
$
-
$
-
$
669,494
$
3
Stormpond 7 (Phase 3)
3,982,353
$
-
$
5,439
$
3,976,914
$
4
CSMI Projects
1,489,593
$
-
$
22,740
$
1,466,853
$
5
WID Capital Levy
9,904,583
$
-
$
7,981
$
9,896,602
$
100 Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
-
$
1,680,331
$
-
$
(1,680,331)
$
17,345,222
$
1,680,331
$
36,160
$
15,628,731
$
E5.
Summary of Stormwater Offsite Levy Cost Flow-through
As shown in the figure below, the total costs for stormwater infrastructure that forms the
basis of the rate is approximately $15.63 million. The cost allocations to each benefitting
party are based on the benefitting percentages shown in Appendix E4. The offsite levy
balance (due from developers) is allocated to various benefitting areas (as described in the
next section).
Town of Strathmore: Offsite Levy Rates Review
October 24th, 2023
CORVUS Business Advisors
Total Stormwater Offsite Levy Costs
Project
Costs
$20.75M
Less: Special
Grants &
Contributions
$0.00M
= Project
Balance
$20.75M
Less: Levy
Receipts
Applied
$1.72M
= Future
Development
(OSL Share)
$17.35M
= Off-site
Balance*
$15.63M
= Other
Share
$0.00M
= Existing
Development
(Muni Share)
$0.00M
= Future
Development
"Financial
Oversizing"
$3.41M
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 49
CORVUS Business Advisors
E6.
Stormwater Infrastructure Benefiting Areas
Net developer costs for each project are 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 engineering staff. The lands
anticipated to develop over the 25-years in each offsite levy benefitting area are used to determine rates.
Benefiting Areas for Stormwater Offsite Infrastructure
Item
Project Description
Developer
Cost
1.5
2.5
3.5
4.5
5.5
6.5
7.5
8.5
9.5
10.5
11.5
1
Stormpond 7 (Phase 1)
$ 1,299,200
1
1
2
Stormpond 7 (Phase 2)
$ 669,494
1
1
3
Stormpond 7 (Phase 3)
$ 3,976,914
1
1
1
1
1
1
1
1
4
CSMI Projects
$ 1,466,853
1
1
5
WID Capital Levy
$ 9,896,602
1
1
1
1
1
1
1
1
1
100 Unallocated Offsite Levies Collected to Dec 31, 2020 - DO NOT DELETE
$ (1,680,331)
1
1
1
1
1
1
1
1
15,628,731
$
* Unallocated levies collected to end-2020 are included in project #100 and credited 100% to future development and to offsite levy areas where
development occurred prior to 2020 (Areas 1, 2, 5-10).
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 50
CORVUS Business Advisors
E7.
Account Balance
At December 31st, 2023 Town records showed a balance of $335,109 in the stormwater
offsite levy account. However, this is based on an over allocation of costs to developers.
The stormwater account balance should be amended to reflect a surplus of $377,710.
Stormwater Offsite Levy Account Balance
2022
(1,049,114.10)
$
Opening Balance
(1,049,114.10)
$
Interest on Opening Balance
24,549.27
$
(1,073,663.37)
$
Withdrawals From Levy Account (Applied to Projects)
-
$
(1,073,663.37)
$
Additional OSL Expenditures (Front-ending) Incl Debenture
Interest (If any)
-
$
(1,073,663.37)
$
OSL Receipts
1,929.20
$
(1,071,734.17)
$
Non-Levy Contributions (If Any)
-
$
(1,071,734.17)
$
Interest on OSL Expenditures
-
$
(1,071,734.17)
$
Interest on OSL Receipts
9.65
$
(1,071,724.53)
$
Interest on Non-Levy Contributions (If Any)
-
$
(1,071,724.53)
$
Town Front-ending Adjustment
1,071,724.53
$
0.00
$
Closing Balance
0.00
$
E8.
Development and Stormwater Infrastructure Staging Impacts
Stormwater offsite infrastructure will be constructed in staged fashion over the 25-year
development period. We have reviewed the availability of offsite levy funds to meet these
construction requirements and found that offsite levy account funds will not be sufficient to
pay for construction of stormwater infrastructure from time to time--front ending of
infrastructure will be required. A front-ender is the party (to date the Town of Sylvan Lake
has been the primary front-ender) that constructs and pays up front for infrastructure that
benefits other parties.
In order to compensate parties for capital they provide in front-ending offsite infrastructure
construction, a 5.12% interest allowance has been charged to the account when in a
negative balance16. Further, a 1.85% interest credit has been provided to the account when
it is in a positive balance17. The graph and table below outline stormwater levy account
balances over the 25-year development period18.
If necessary, a staging adjustment is applied to rates (positive or 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).A
16 The interest charging rate is equivalent to the 20-year debenture rate at the Alberta Capital Finance Authority
at the time of calculation which was ~5.12%.
17 The interest earning rate is equivalent to the interest earning rate within the Town various reserve accounts
which was 1.85% in 2023.
18 Note, forecast account/reserve balances are based only on offsite levy costs currently included in rates. Actual
future account/reserve balances may vary depending on oversizing costs currently excluded from rate
calculations.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 51
CORVUS Business Advisors
detailed overview of offsite levy calculations, including staging adjustments, is outlined in
Appendix H.
Anticipated Stormwater Offsite Levy Account Balances
$(180,000)
$(160,000)
$(140,000)
$(120,000)
$(100,000)
$(80,000)
$(60,000)
$(40,000)
$(20,000)
$-
$20,000
2023
2026
2029
2032
2035
2038
2041
2044
2047
$
Year
Storm Reserve
Reserve
Balance
Anticipated Stormwater Offsite Levy Account Balances
Opening Balance
0
$
Year
Receipts
Expenditure
Interest
Balance
2023
6,105
$
154,200
$
(7,701)
$
(155,796)
$
2024
7,810
$
-
$
(7,695)
$
(155,681)
$
2025
6,688
$
-
$
(7,748)
$
(156,741)
$
2026
6,940
$
-
$
(7,790)
$
(157,591)
$
2027
8,358
$
-
$
(7,760)
$
(156,992)
$
2028
10,573
$
-
$
(7,614)
$
(154,034)
$
2029
7,365
$
-
$
(7,627)
$
(154,295)
$
2030
10,332
$
-
$
(7,486)
$
(151,449)
$
2031
8,502
$
-
$
(7,433)
$
(150,380)
$
2032
9,839
$
-
$
(7,308)
$
(147,850)
$
2033
11,233
$
-
$
(7,104)
$
(143,721)
$
2034
11,353
$
-
$
(6,883)
$
(139,250)
$
2035
9,245
$
-
$
(6,760)
$
(136,765)
$
2036
36,107
$
-
$
(5,234)
$
(105,893)
$
2037
11,979
$
-
$
(4,883)
$
(98,797)
$
2038
9,458
$
-
$
(4,646)
$
(93,984)
$
2039
13,346
$
-
$
(4,193)
$
(84,832)
$
2040
11,942
$
-
$
(3,790)
$
(76,680)
$
2041
12,523
$
-
$
(3,336)
$
(67,493)
$
2042
10,970
$
-
$
(2,939)
$
(59,463)
$
2043
13,878
$
-
$
(2,370)
$
(47,955)
$
2044
11,638
$
-
$
(1,888)
$
(38,205)
$
2045
12,308
$
-
$
(1,347)
$
(27,244)
$
2046
14,287
$
-
$
(674)
$
(13,631)
$
2047
13,631
$
-
$
0
$
0
$
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 52
CORVUS Business Advisors
APPENDIX F: OFFSITE INFRASTRUCTURE DEFINITIONS19
F1. Water
The Town of Strathmore's water system conforms to the Standard's and Guidelines for
Municipal Waterworks, Wastewater, and Storm Drainage Systems and published by Alberta
Environment and Protected Areas.
The Town's water is supplied by the City of Calgary via the East Calgary Regional Waterline
(ECRW) and delivered to the Wildflower Reservoir. Distribution throughout the Town is
achieved via a network of transmission and distribution lines varying in size, materials, and
age. Leviable water infrastructure focuses on primary distribution only, following a
generalized grid pattern throughout the community that delivers water to the edge of each
development area. A future East Reservoir and the transmission network to connect to the
existing reservoir and ECRW are also included, all other upgrades, unless a direct impact of
the Reservoir Upgrades, are the responsibility of the individual developments.
F2. Sanitary
The sanitary system in the Town also conforms to the Standard's and Guidelines for
Municipal Waterworks, Wastewater, and Storm Drainage Systems and published by Alberta
Environment and Protected Areas.
Sanitary Sewers are interconnected and utilize a trunk system to deliver the full Town's
sanitary flows to the Waste Water Treatment Plant (WWTP) at the south edge of the Town.
This Biological Nutrient Removal (BNR) style treatment plant is relatively new and operates
well within its existing capacity. Leviable sanitary infrastructure is primarily attributed to
upgrades to the Trunk System which runs in a Northwest to Southeast direction. Delivery
systems (lift stations) associated with the Trunk Network which service more than two (2)
development areas are also included within the Levy Structure; sanitary work within a
community is not generally seen as a Levy project and is the responsibility of the
development.
F3. Stormwater
The Town of Strathmore's stormwater system conforms to the Standard's and Guidelines for
Municipal Waterworks, Wastewater, and Storm Drainage Systems and published by Alberta
Environment and Protected Areas.
The Town's topography requires multiple stormwater catchment areas to be considered,
primarily a North (Serviceberry) and a South (Bow) catchment area. Each has their own
dedicated discharge location and restrictions on stormwater flow related to each of the
discharge points. Levies are collected to provide the applicable discharge points at the
Northwest and Southeast corners of Town. A regional collection system (storm ponds)
19 Offsite infrastructure definitions were developed by the Town and are intended to be a guide only. The Town
reserves the right to modify these definitions as required to address unique or changing circumstances.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 53
CORVUS Business Advisors
necessary to achieve the flow restrictions at the Southeast discharge point is also included.
Stormwater minor systems and community containment is the responsibility of each
developer.
F4. Transportation
The Town of Strathmore primarily consists of local roadways and collector roads along with
select arterial cross sections and Provincial Highways #1 and #817. The Transportation
Master Plan outlines the cross section of each roadway however these generally follow the
Transportation Association of Canada (TAC) Geometric Design Guide and other local
(provincial) guidelines where appropriate.
Leviable Transportation upgrades focus on the primary collector or arterial roadways in a
generalized grid pattern which support the community as a whole. These roadways
generally follow the Alberta Township System (ATS) grid with minor exceptions where
necessary. Roadways within a community which feed to this primary grid are the
responsibility of each development and not considered in the Levy Projects.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 54
CORVUS Business Advisors
APPENDIX G: COMPARISON OF RATES
The table below compares the Town's new offsite levy rates to rates in other municipalities.
Average Per Ha.
Municipality / Area
$51,900 - $84,800 (2023)
Town of Crossfield
$90,100 (2015)
Town of Blackfalds (roads, water, sewer, storm)
$91,200-$102,200 (2022)
City of Airdrie
$165,342 (2024)
Town of Strathmore* (roads, water, sewer)
$102,012 (2022)
City of Medicine Hat* (roads, water, sewer, storm)
$109,200 (2016)
Town of Redcliff* (roads, water, sewer, storm)
$138,052 - $290,481 (2021)
Town of High River (roads, water, sewer)
$79,823 (2021)
City of Brooks* (roads, water, sewer, storm)
$281,711 - $320,613 (2023)
Town of Cochrane (roads, water, sewer, storm, hwy int, police)
$198,600 (2020)
Town of Okotoks (roads, water, sewer)
$203,300 (2019)
City of Red Deer* (roads, water, sewer, storm)
$295,960 (2022)
City of Chestermere* (roads, water, sewer, storm, recreation)
$220,000 (2017)
Red Deer County (Gasoline Alley) (roads, water, sewer, storm)
$290,000 (2023)
City of Lethbridge (roads, water, sewer, storm)
$495,000 - $544,000 (2023)
City of Calgary Green Field Area (roads, water, sewer, storm, comm,stab)
Not current (2002)
Foothills County
Not current (2007)
Town of Irricana
N/A - $/m3
Rocky View County
Incomplete (Road only)
Wheatland County
N/A - none
Town of Diamond Valley
*CORVUS clients
**Information adapted from online sources as at early 2024.
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 55
CORVUS Business Advisors
APPENDIX H: RATE CALCULATION
The diagram below depicts the rate calculation formula. The offsite levy rate in each offsite
levy area (e.g., Area A) for a given infrastructure type (e.g., water) is equal to the sum of all
Individual Projects Rates (IPRs) applicable to the Area, plus or minus a reserve/account
Adjustment (Adj) for that specific infrastructure type (e.g., water reserve/account).
Offsite Levy Rate
for Water in Area A
IPR1,A =
OB
+ (FIRA + FIRB + ... FIRn)
- (FICA + FICB +... FICn)
+/- interest earned/charged
where CB is zero
(IPR1,A + IPR2,A + ... IPRn,A)
+/- Account Adj for Water
(((C - SG - Con) x % Alloc) - L)
(NHAA + NHAB + ... NHAn)
Account Adj =
=
25 Year
Review
Period
Where:
"IPR1,A" is the Individual Project Rate for Project 1 in Area A and is calculated as: the total
remaining cost allocated to future development, divided by the forecast adjusted net
hectares that will develop during the 25-year review period in all areas that benefit from
Project 1.
"C" is the total Cost of Project 1 and is calculated as: the actual historical costs for
completed construction, plus actual historical loan interest (if any), plus estimated future
construction costs, plus estimated future loan interest (if any). Cost estimates are prepared
by the municipality (or engineering advisors or facility advisors for the municipality) and are
often outlined in master plans or other technical documents.
"SG" are Special Grants received and anticipated. These grants are earmarked/restricted to
a specific project.
"Con" is Contributions received and anticipated. These are unique contributions received
from developers or other third parties which are not offsite levies and which are not already
reflected in allocations to other municipalities etc. They are similar to special grants in that
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 56
CORVUS Business Advisors
they are contributions earmarked/restricted to a specific project.
"% Alloc" is the Percentage of Project Cost Allocated to future development within the 25-
year review period. This percentage is determined by the municipality (or engineering
advisors or facility advisors for the municipality). Project cost is allocated to three parties: (1)
future development, (2) the existing municipality, and (3) third parties. Because
infrastructure is often built solely to support future land development, project cost is often
allocated 100% to future development. But when infrastructure is built to support an existing
need, a percentage of cost is allocated to the municipality (i.e., existing taxpayers). Similarly,
there may be circumstances when a project is constructed to support a need in a
neighbouring municipality (e.g., a stormwater management facility to deal with drainage
issues stemming from a neighbouring municipality, or an arterial road that straddles the
boundary of both municipalities, or a water treatment plant intended to provide water to a
neighbouring municipality). In this case, a percentage of cost is allocated to the third party.
"L" are the Levies collected to date for a specific project.
"NHAA" are the Net Hectares of land in Area A that are forecast to be developed within the
25-year review period. Net hectares are usually equal to gross hectares less environmental
lands (if any), less an allowance for municipal reserves (usually 10%), less arterial road
rights of way and any other land allowances (if any). The total net hectares from all areas
that benefit from a given project (i.e., the benefitting basin) are included in the denominator
of the Individual Project Rate calculation (see IPR).
"Adj" is the overall offsite levy reserve/account Adjustment and is calculated as a
percentage and applied to all offsite levy rates for a given infrastructure type (e.g., water).
This is a complex calculation because legislation contemplates one account/reserve for
each infrastructure type. The staging adjustment is revised each time rates are updated.
This ensures rates reflect the most up-to-date data and assumptions.
Note: though municipalities must track levies collected for each project, legislation does
not contemplate one account/reserve for each project. If this were the case, no project
would be built until all lands in the benefitting basin were developed and associated
levies collected. This would not be practicable. By utilizing one account/reserve for a
family of projects of a given infrastructure type, monies collected can be used to
construct the next project in the construction staging schedule.
"OB" is the Opening Balance of the applicable offsite levy account/reserve (e.g., water
reserve) and is calculated as the sum of all actual levy contributions received, less the % of
actual project costs to date allocated to future development (including financing costs if any),
plus/minus the application of interest earned and interest charged. Interest within offsite levy
reserves/accounts may be calculated by applying the interest earning rate for the applicable
year at mid-year (the "Half Year Rule") and the interest charge rate for the applicable year at
September (the "Quarter Year Rule").
"FIRA" is the estimated Future Inflated Revenues for Area A in the applicable offsite levy
account/reserve (e.g., water revenues). Future inflated revenues are determined using the
amount of land and timing stemming from the development staging plan in Area A,
multiplied by offsite levy rates anticipated in the future in Area A (inflation is applied to
current levy rates to forecast future rates).
"FICA" is the estimated Future Inflated Costs for Area A in the applicable offsite levy
Town of Strathmore: Offsite Levy Rates Review
April 11th, 2024
/ 57
CORVUS Business Advisors
account/reserve (e.g., water project costs). Future inflated costs are determined using the
percentage of project costs in each year stemming from the construction staging plan for
each project (inflation is applied to current cost estimates to forecast future costs).
"CB" is the Closing Balance in the applicable offsite levy account/reserve at the conclusion
of the 25-year review period. The closing balance at the end of the 25-year review period
must be zero--the municipality cannot over collect from future development, and future
development cannot under pay.20
20 Note, forecast account/reserve balances are based only on offsite levy costs currently included in rates. Actual
future account/reserve balances may vary depending on oversizing costs currently excluded from rate
calculations.