By-law 2024-107, A By-law to Amend City-Wide Development Charges By-law 2023-027

Cornwall, Ontario · No. 2024-107 · adopted 2024-11-26 · summary & facts

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Cornwal The Corporation of the City of Cornwall Regular Meeting of Council By-law 2024-107 Department: Financial Services Division: Finance By-law Number: 2024-107 Report Number 2024-105-Financial Services Meeting Date: November 26, 2024 Subject: A BY-LAW TO AMEND CITY-WIDE DEVELOPMENT CHARGES BY-LAW 2023-027 Whereas subsection 2 (1) of the Development Charges Act, 1997 (the "Act"), S.O. 1997, c.27, as amended, provides that the council of a municipality may by by-law impose development charges against land to pay for increased capital costs required because of increased needs for services arising from development of the area to which the By-law applies; and Whereas Section 19 of the Act provides for amendments to be made to development charges by-laws; and Whereas subsections 19 (1.2) and 19 (1.3) of the Act permit a municipality to amend a development charges by-law, subject to conditions being met, that do not require the process for by-law amendments under subsection 19 (1) of the Act to be followed; and Whereas the Council of the Corporation of the City of Cornwall (the "Council") enacted and passed By-law 2023-027 on March 27, 2023, which came into effect April 10, 2023; and Whereas on November 12, 2024, Council received correspondence from Watson & Associates Economists Ltd. supporting this by-law amendment and Council intends to change the rules developed pursuant to paragraph 9 of subsection 5 (1) of the Act to increase a development charge imposed during the first four years that the by-law is in force to the amount that could have been charged if cornwal paragraph 4 of subsection 5 (6) of the Act had not been in force at the time the by-law was passed, and to include the growth-related costs of studies, pursuant to paragraphs 5 and 6 of subsection 5 (3) of the Act, within the development charge calculation. Now therefore be it resolved that the Council of The Corporation of the City of Cornwall enacts as follows: 1. By-law 2023-027 is hereby amended as follows: 1.1. The "capital cost" definition in section 1.1 of the By-law is deleted and substituted with the following: "capital cost" means costs incurred or proposed to be incurred by the City or a local board thereof directly or by others on behalf of and as authorized by the City or local board, (a) to acquire land or an interest in land, including a leasehold interest, (b) to improve land, (c) to acquire, lease, construct or improve buildings and structures, (d) to acquire, construct or improve facilities including, (i) furniture and equipment other than computer equipment, and (ii) material acquired for circulation, reference or information purposes by a library board within the meaning of the Public Libraries Act; (iii) rolling stock with an estimated useful life of seven years or more; and (e) including interest on borrowing for those expenditures under clauses (a) to (d) above that are growth-related; (f) to undertake studies in connection with any of the matters in paragraphs (a) to (d) above, including the development charge background study cornwal 1.2. Section 2.1 of the By-law is deleted and substituted with the following: The categories of services/classes of service for which development charges are imposed under this By-law are as follows: (a) Services Related to a Highway; (b) Fire Protection Services; (c) Parks and Recreation Services; (d) Library Services; (e) | Ambulance Services; (f) Waste Diversion Services; (g) Water Services; (h) | Wastewater Services; and (i) Transit Services. (j) Growth-Related Studies 1.3. Section 3.14 of the By-law is deleted 1.4. Schedule "A" is deleted and replaced with Schedule "A" attached to this by-law. 2. This By-law shall come into effect on January 1, 2025. Read, signed and sealed in open Council this 26th day of November, 2024. np e Oh ine eeaue othe Digitally signed by Justin Towndale pdr) '3 ana el 4 J A eee estin Town dale, vc of gk [email protected], c=CA Ca Siitzitonndalogcorwallce CA Date: 2024.11.27 11:22:43 -05'00 Date: 2024.12.03 13:47:18 -05'00' Manon L. Levesque Justin Towndale City Clerk Mayor Cornvwa ONTARIO CANADA SCHEDULE A SCHEDULE OF DEVELOPMENT CHARGES RESIDENTIAL Non-Residential ace aK a na eae scar Sete lates Multiples Care!Specta caae ae Bedroom Dwelling Units Area) Municipal Wide Services Senices Related to a Highway 8,249 5,558 4,203 7,835 3,762 2.61 Fire Protection Services 611 411 311 580 278 0.47 Parks and Recreation Services 2,651 1,786 1,351 2,518 1,209 0.06 Library Services 407 275 208 387 186 0.01 Ambulance Serices 140 94 71 133 64 0.04 Waste Diversion Services 173 116 88 164 79 0.00 Transit Services 59 40 30 56 27 0.02 Growth-Related Studies 124 84 63 118 57 0.04 Total Municipal Wide Services| ----tzata--~=imswa)~--~--~C~C« aes | SCron] ----~Ci a] CSC Urban Services Water Services 2,051 1,382 1,045 1,948 935 0.76 Total Urban Services | ass] teat] tet] gts] tt] 0.90 | GRAND TOTAL RURAL AREA 12,414 8,364 6,325 11,791 5,662 a ee Cornwa Explanatory Note Purpose To provide information regarding the D.C. By-Law amendments provided by Sean-Michael Stephen from Watson & Associates Economists Ltd. in a memo to Tracey Bailey dated November 13, 2024, as presented to Council. Background / Discussion 1. Introduction The City of Cornwall (City) passed development charges (D.C.) by-law 2023-027 on March 23, 2023, that came into effect April 10, 2023. At the time of by-law passage, the Development Charges Act (D.C.A.) did not include studies as an eligible cost to be funded through D.C.s. At the time by-law 20203-027 was passed, the D.C.A. also included a requirement to phase-in the charge in any new D.C. by-laws over the first 5- years of the by-law. On June, 6, 2024, Bill 185 (Cutting Red Tape to Build More Homes Act, 2024) received Royal Assent and includes the following changes to the D.C.A.: e The removal of the Mandatory Phase-in for D.C. by-laws passed after Bill 185 comes into effect; e A reduction to the D.C. rate freeze timelines for developments proceeding though site plan and zoning by-law amendment applications under the Planning Act. Charges are currently held at rates in place on the date the application is made until building permit issuance, provided the building permit is issued within two (2) years of the approval of the application. This time period has been reduced to 18 months under Bill 185 (note that the two (2) year timeline will still apply to applications received prior to Bill 185 receiving Royal Assent); e Inclusion of growth-related studies, including the D.C. background study, as D.C.-eligible costs; e Provide a provision of the D.C. by-law specifying the date the by-law expires or to amend the provision to extend the expiry date; 2233 Argentia Rd. Office: 905-272-3600 Suite 301 Fax: 905-272-3602 Mississauga, Ontario www.watsonecon.ca TCO EE OS ES It Ane Ne ate SN Oe L5N 2X7 in) xX rn va * To allow minor by-law amendments related to the inclusion of study costs, removal of the mandatory phase-in, and extension of by-law expiry dates (subject to the 10-year limitations provided in the D.C.A.)' * To modernize public notice requirements. The purpose of this memorandum is to provide the basis for the proposed amendment to the City's D.C. by-law (attached) to include the costs of growth-related studies and to remove the phase-in provisions that were included within the City's D.C. by-law. Subsections 19 (1.2) and 19 (1.3) of the D.C.A. allow for amendments to be made to a D.C. by-law to include growth-related study costs or to remove the statutory phase-in provisions without following subsection 19 (1) of the D.C_.A. Subsection 19 (1) of the D.C.A. requires sections 10 to 18 to be followed when making an amendment to a D.C. by-law. As such, an amendment for these purposes do not require the preparation of a background study or a public meeting of Council. Furthermore, the by-law cannot be appealed to the Ontario Land Tribunal under section 14 of the D.C_.A. Notwithstanding the foregoing, the clerk of the municipality is still required to give notice of by-law passage in accordance with subsections 13 (2) to (4) of the D.C.A. 2. Growth-Related Studies The D.C.A. permits the inclusion of studies undertaken to facilitate the completion of the City's capital works program. These studies have been included within Services Related to a Highway, Parks and Recreation Services, Library Services, Ambulance Services, Waste Diversion Services, Water Services, Wastewater Services, and within a Growth-Related Studies class of service based on each service to which the studies relate. Table 2-1 summarizes the studies that have been included within each service or class of service within the D.C. background study, including the anticipated timing, gross capital costs, and D.C. eligible costs included in the calculation of the charge. 'Minor amendments to include study costs or remove the mandatory phase-in only apply to by-laws passed between November 28, 2022 and June 5, 2024. These by-law amendments must be passed by December 6, 2024 Watson & Associates Economists Ltd. PAGE 2 Acnendnent Mer ONTARIO CANADA Table 2-1 Growth-Related Studies ? Laas Potential 0.C. Recoverstie Com eee wares eer omnes tate Timi ng PRavtee-t Other Not Capita Bene to Reade ntial Mra fatieipated Bavetepmant iyear) Estimate Deductions Cost Existing Total Share Residential (2O238) De velopment Shere Service Speciic Sham Fire Protwetion Services (2023 2056) Fre Mastor Pin sdae id' se | reco) | vacuo] te e00| seme] onzas| _se.ve6] Risk Assessmnent Sid? as | eocoo]-f saooo] --12.s00| 37.500] tasoo| 24,000] a LS a a TL TT TY EE) a | | eT adboroug) St - Ment" St to Ewwrin St EA | oes | tsnom| - | tsuoo| _srsou| tias00| 65.200] 47.250 onion Kall EO) ee ee [ae | mmo] | anno] asm] msn] mam] ri ST a a a SD A eT ZY ParStTirteewh SttoTogaend A | 2008 | 25000) | 250000] ro.300| 170700] toazs| 75.474! ied Ae Oe) ee a ee ee SS SS ST ST A TS Parks and Recreation Services (2023-2038) | fd Parks and Recreation Master Pian idata) | move | vacuo) | ooo] i7su| sasuu| soars} 2605] Parks ond Fincreation Master Pies | = 0g0 | eso0o | isucon| a soa] tizsoo | joe.s7s[ ses] A: ! SE) TT] A SS TO LRN: teary Suaegic Pian ||| a TS] BTS | ee | ee ee ee Ts a a a a a I | a TS TSS CTT A SSL] (ARMA) Vn <¢ SAMY OCA RAL? SS ES ES SS A, SA A A A SS ON SE TE Wastewater Secvices(utbanisveag | J L,Y I a a | Contined Sewer SopwanonMasteman | 2030 | oom] | 2sg0u0| easca| tensou| toresu| 66.250] LLL TE; SS ECL) (SN! SAL SG: MR A TE AS TT SE) ST] ES TS TA CLE a a SE eS LT SY Se Dewicoment Chanpes Brum Amensnes | aos f sso) - | omo| - | as] sver| _ases| Develooment Charmes Backgouns Study | 2028 | ssnou) - | tscooo]-----~'| 10000] eeze2| 35.733] Se a a a a TY TN rs Saommater Masteqian (stsmiwste Sances) | 2oaa | 2sn000) | ss0000| ea ca| fers) joe7su| 78750] Resove Find Adjustment dd «dS a tse coe 155.08 A < SS (CNSR!) PANN] (SRN; MG Can ee See, In aggregate, the study costs that have been identified total $4.6 million. A deduction of $263,900 has been made to recognize the portion of planning studies related to D.C.- ineligible services, the share of EMS studies related to the United Counties of Stormont, Watson & Associates Economists Ltd. PAGE 3 Amendment! Meno ONTARIO CANADA Dundas, and Glengarry, and the share of Waste Diversion studies related to solid waste. After deducting $1.1 million for the benefit to existing share and deducting $230,052 for the estimated 2023 D.C. reserve fund surplus for Growth-Related Studies, the D.C. eligible costs for studies that have been considered with the calculation of the charge within each service or class of service total $3.0 million. Based on the changes identified, the amended schedule of charges is presented in Table 2-2. The charges are presented in 2023$ values, representing the cost base used in the D.C. by-law Table 2-2 Amended Schedule of D.C.s RESADENTIAL Non-Resdential aa e: re Agarmeon Special per fn. of sateen Rama edorptorts 3 oem .- Boscoessocih t Owbor Multiples Care Special panionine Bedroom Dwelling Units Area) Municipal Wide Services Services Rolaced to a Hgtway 8.249 5568 4,203 7536 3,762 241 Fire Protection Services att 41 311 530 278 o47 Parks and Recreation Senvices 2,651 1,786 1,351 2,518 1.208 0c Lérary Senices 407 275 20 x7 186 0.01 Ambulance Sewoes 140 71 pec) a oo Wasce Diarsion Serioes 73 16 88 14 73 0.00 Trarak Serces =] 40 x 5 2 0.02 Growth-Related Studies 'a4 a 63 18 67 0.04 Total Municipal Wide Services [0 azaig fe] 8398 ae <-) eS) Urban Services Wastewmor Sarvoes = 196 eS ot Water Serwces 1.382 1,045 oe O78 Tota Urban Services Pate eat et eto] mum TTA anna a : D TOTAL URBAN AREA 14,104 Table 2-3 shows the total charge for the urban and rural areas in 2024$ values, reflecting the indexing (7.8%) that has been applied to the charges passed in 2023. Table 2-2 Amended Schedule of D.C.s Indexed to 2024$ Values RESMENTIAL Non-Reddential Service/Ciass of Service Single and Semi- Aparanents - 2 Ay rbarcsres ze. ea chs Detachad Dwalling Segeenn + Bachelorandt Other Mutipios Care/Specal Grous Fiooe Be droorn Owelling Units Area) 20245 Charge Wilh Intex ing c D TOTAL RURAL AREA a a Watson & Associates Economists Ltd. PAGE 4 Amendnent Meno rn Va The current fully calculated charge for a single and semi-detached residential unit, with indexing, is $15,018. When applying the phase-in that is still including in the by-law, the current charge that is imposed is $12,765 per unit. The amended charge of $16,007 would increase the fully calculated charge by $990 (+7%). The actual increase over the current phased-in charge would be ($3,242) (+25%). Tables 2-3 and 2-4 summarize the increase in the charge for a residential single- detached unit and per sq.ft. of non-residential gross floor area. Table 2-3 D.C. Comparison (Current vs. Amended) Per Residential Single Detached Dwelling Unit % Increase Current vs. Current Current (Year2 Amended "Increase vs. (Year2 Service/Class of Service (Calculated) Phase-in) Charge Current Phase-n) Municipal Wide Services/Classes; Serices Related to a Highway 8,412 7,150 8,893 6% 24% Fire Protection Services 640 544 658 3% 21% Parks and Recreation Serices 2,737 2,326 2,858 4% 23% Library Services 420 357 439 4% 23% Ambulance Senices 142 121 151 6% 25% Waste Diversion Serices 139 118 186 34% 57% Transit Services 64 54 64 0% 18% Growth-Related Studies - - 134 Urban Services Wastewater Services 259 36% 60% Water Services 1,834 2% 21% ninen royal Bel wel a GRAND TOTAL URBAN AREA 5,018 12,765 16,007 25 Watson & Associates Economists Ltd PAGE 5 Arnendinent Menno Cornwa Table 2-4 D.C. Comparison (Current vs. Amended) Per Non-Residential sq.ft. of Gross Floor Area % Increase Current % Increase v& vs. Current Current (Year2 Amended Current (Year 2 Service/Class of Service (Calculated) Phase-in) Charge (Calculated) Phase-n) Municipal Wide Services/Classes: Serices Related to a Highway 2.66 2.26 2.81 6% 24% Fire Protection Services 0.50 0.42 0.51 3% 21% Parks and Recreation Services 0.06 0.05 0.07 4% 23% Library Services 0.01 0.01 0.01 5% 23% Ambulance Sernices 0.04 0.04 0.05 6% 25% Waste Diversion Senices 0.00 0.00 0.00 34% 58% Transit Serices 0.02 0.02 0.02 0% 18% Growth-Related Studies ~ - 0.04 Urban Services _ Wastewater Semces 0.11 0.09 0.15 40% 65% Water Sernices 0.80 0.68 0.82 3% 21% eT ys ee ee ers + Gran TOTAL ursaw aren | 420] _--as7|--aan| ra) GRAND TOTAL URBAN AREA i The draft amending D.C. by-law is attached to this memorandum and is proposed to take effect January 1, 2025. Watson & Associates Economists Ltd. PAGE 6 Anwenettien! Mena