2020 Development Charges Background Study - Gananoque
Gananoque, Ontario
· summary & facts
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@\Natson
& Associates
ECONOMISTS LTD.
2020 Development Charges Background
Study
Town of Gananoque
For Public Circulation and Comment
Watson & Associates Economists Ltd.
905-272-3600
November 24, 2020 [email protected]
Table of Contents
Page
1. INtrOCUCTION....... cece cece ee eeeeeeeeeee eee eeeeeeeeeeeeneeeeeeeeeeenaaeesseeeeeeeeeeenaaaeeeeeeeesseeeeeeeeeseeees DUT
1.1 Purpose of this DOCUMENT...............ccccccceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeteeeeeseseeeeeeeees 127
1.2 Summary of the Process..............cccceceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeteeeeeeeee TO
1.3. Changes to the Development Charges Act, 1997: More Homes,
More Choice Act (Bill 108) the Plan to Build Ontario Together Act
(Bill 138), and the COVID-19 Economic Recovery Act (Bill 197) ............1-3
2. Anticipated Development in the Town of Gananoque............::::::seeeeeeeeeeeeeee 201
2.1 Requirement of the ACt ..............::cccceceeeceeeeeeeeeeeeeeeeeeeeeeeeeseeeeeteeeeeesteeeeeeee D7
2.2 Basis of Population, Household and Non-Residential Gross Floor
Area FOreCast ...........:ccccccccccceeeeeeeeeeeeeeeeeeeaeeeeeeeeeeeeeeessaseeeseeeseeeeessetteeeeeees D7
2.3. Summary of Growth Forecast ........... cece ceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeees 272
3. The Approach to the Calculation of the Charge ..............:ccccccsseeeeeseeeeeeeeeeeees OPT
3.1 INtrOGUCTION ............0ceeceeeeeeeeee cee eeeeeeeeeeeeeeeeaeeeeeeeeseseeeesesaaeeeeeeeeteesetesstetseees OP
3.2 Services Potentially INVOIVed 0.0.00... Or
3.3 Increase in Need for Se€rviCe...............:::ccccceeeeeeeceeeeeeeeeeeeeeeeeeeeaaeeseeeeeeeeees OOD
3.4 Local Service POIiCy........ eee eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeaeeaaaaaaaaaaaaaaaaaeaaaaaaaaeeee Od
3.5 Capital FOreCcast............ccccccecccccceececececeeeeeeeeeeeeeeeeseeseeeseeeeeeeeessesstsssseeeeees OOD
3.6 Treatment Of Credits ..............cccccccccccccceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeesesaetsseeeeesss OPO
3.7 Classes Of SErViCeS ..............ccccceeeeecceeeeeeeeeeeeeeeeeeeeeeaeeeeeeeeeeeeseesessaesseeeeeses OOO)
3.8 -- Eligible Debt and Committed Excess Capacity... ieee O79
3.9 Existing Reserve FUndS ........... eect O71 O
3.10 DO@CUcCtions. .............ccccccccceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeseaeaeeeeeeeeeeeeessstsesseeeeeess O10
3.11. Municipal-wide vs. Area Rating ..........: cece OUTS
3.12 Allocation of Development ...............ccccceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeettteeeeeees O71
4. Development Charge Eligible Cost Analysis by Service ........ccccccccceeeeeeeeeees 4e1
4.1 Service Levels and 10-Year Capital Costs for Municipal-Wide D.C.
Calculation ...........cccccccceeeeeeeeeeeeeecceeeeeceeeeeeeeeeeeaeaeeeeeeeseceeseseaeeseeeeteeeeeseeeens God
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Table of Contents (conta)
Page
4.2 Service Levels and Buildout Capital Costs for Urban D.C.
CalCuUlation ...........ccccccceccccceeceeeeeeeceeeeceeesseeeeeeesseeeeeeesseeeeeessssseseesssseesesessess BoD
5. D.C. Calculation ..........cctccccccssesseeeeeeseeeesseneeeesseeeseeessnneseesssaneneessseaeseessseeeseesssees OT
6. D.C. Policy Recommendations and D.C. Policy Rules ........cccccceeeeeeeeeeeeeeee O91
6.1 INtPOCUCTION ......... ccc ceeeccccceeeeeceeeeeeeeeeeeeaeeeeeeeseeeeeeeseaeeeeessseeeesesssaeeesssseeseses OWT
6.2 D.C. By-law Structure .............cccccccccccseeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeessseeeseeereseeess OWT
6.3 D.C. By-law RUI@S............... ccc cceeeeeseeeseeseeessesssssesessseesesseeessessssssssssssssssssees OD
6.4 Other D.C. By-law ProviSiONns 0.0.0.0... eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeaaaaaaaaaaaaeaeeees O-8
6.5 Other RECOMMENCAiONS ..............cccccceeeccceeeeeeeeeeeeseeeeeeesseeeeeesssseeeeessseeeessOoL
7. Asset Management Plann ........cccccccicti i eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeneneeneeen DO
8. By-law Implementation ......... ccc rere eeeeeeeeeeeeeeeeneeeeeeeeeeeeeeeeeeeeees OO
8.1 Public Consultation Process .............cccccccesseeeeeeeeeeeeeeeesaeeeeeeesseeeeesessaeeseess OWT
8.2 Anticipated Impact of the Charge on Development.................::::::c:ee111 O-2
8.3 Implementation Requirement ................::::cccceeeeeceeeeeeeeeeeeeeeeeeeeeeeeeseeeeeess OPO
Appendix A Background Information on Residential and Non-Residential
Growth Forecast ..........ccccccssseeeeeeeseeeeeeeeeseeeeseeeseeeeseeeeseesseeeseeessasseeesssneeseessseeees ATT
Appendix B Historical Level of Service Calculations. ................cccsessseeeeeeeeeeeereeeees BOT
Appendix C Long Term Capital and Operating Cost Examination..................:.C-1
Appendix D Local Service Policy............ccccccceceeeeeeseeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeees DOD
Appendix E Proposed Development Charges By-law. ..........2.::::s:ccesseeeeeeeseeeeeeeeeeee end
Watson & Associates Economists Ltd.
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List of Acronyms and Abbreviations
Acronym Full Description of Acronym
D.C. Development charge
D.C.A. Development Charges Act, 1997 as amended
G.F.A. Gross floor area
L.P.A.T. Local Planning Appeal Tribunal
N.A.1.C.S. North American Industry Classification System
N.F.P.O.W. No Fixed Place of Work
O.M.B. Ontario Municipal Board
O.P.A. Official Plan Amendment
O.Reg. Ontario Regulation
P.O.A. Provincial Offences Act
P.P.U. Persons per unit
S.D.E. Single detached equivalent
$.D.U. Single detached unit
S.S. Subsection
sq.ft. square foot
sq.m. square metres
km kilometers
Watson & Associates Economists Ltd.
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Report
Watson & Associates Economists Ltd.
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1. Introduction
1.1 Purpose of this Document
This background study has been prepared pursuant to the requirements of the
Development Charges Act 1997 (D.C.A.) (s.10), and accordingly, recommends new
Development Charges (D.C.s) and policies for the Town of Gananoque (Town).
The Town retained Watson & Associates Economists Ltd. (Watson) to undertake the
D.C. study process. Watson worked with Town staff in preparing this D.C. analysis and
the policy recommendations.
This D.C. background study, containing the proposed D.C. by-law, will be distributed to
members of the public in order to provide interested parties with sufficient background
information on the legislation, the study's recommendations, and an outline of the basis
for these recommendations.
This report has been prepared, in the first instance, to meet the statutory requirements
applicable to the Town's D.C. background study, as summarized in Chapter 3. It also
addresses the forecast amount, type, and location of growth (Chapter 2), the
requirement for "rules" governing the imposition of the charges (Chapter 6) and the
proposed by-law to be made available as part of the approval process (Appendix E).
In addition, the D.C. background study addresses post-adoption implementation
requirements (Chapter 8) which are critical to the successful application of the new
policy.
The chapters in the report are supported by Appendices containing the data required to
explain and substantiate the calculation of the charge.
1.2 Summary of the Process
The public meeting required under Section 12 of the D.C.A. will be scheduled, at the
earliest, two weeks after the posting of the D.C. background study and draft D.C. by-law
on the Town's website. Its purpose is to present the background study and draft D.C.
by-law to the public and to solicit public input on the matter. The public meeting is also
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being held to answer any questions regarding the study's purpose, methodology, and
the proposed modifications to the Town's D.C. by-law.
In accordance with the legislation, the background study and proposed D.C. by-law will
be available for public review at least 60 days prior to by-law passage.
The process to be followed in finalizing the report and recommendations includes:
e consideration of responses received prior to, at or immediately following the
public meeting; and
e finalization of the report and Council consideration of the by-law subsequent to
the public meeting.
Table 1-1 outlines the study process to date and the proposed schedule to be followed
with respect to the D.C. by-law adoption process.
Table 1-1
Schedule of Key D.C. Process Dates
Process Steps Dates
1. Project initiation meeting with Town Staff November 25, 2019
2. Data collection, staff interviews, and preparation of D.C. December 2019 --
calculations September 2020
. P tati f D.C. calculati t ior M t
3. Presentation of D.C. calculations to Senior Managemen September 9, 2020
Team
4. P tati f draft findi d D.C. policy di
resen ation of draft findings an policy discussion October 1, 2020
with Town Staff
5. Presentation of draft findings and D.C. policy discussion to
; meng Palicy aiscuss! October 20, 2020
Council
. D.C. Back t ft D.C. by-| ilable t
6 C. ackground Study and dra C. by-law available to November 24, 2020
public
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Process Steps Dates
7. Public Meeting of Council To be determined
8. D.C. By-law passage To be determined
. . By 20 days after
9. Newspaper notice given of by-law passage
_ i _
40 days after
10.Last day for by-law appeal
passage
by 60 days after in
11.Town makes available D.C. pamphlet y y
force date
1.3 Changes to the Development Charges Act, 1997: More
Homes, More Choice Act (Bill 108) the Plan to Build
Ontario Together Act (Bill 138), and the COVID-19
Economic Recovery Act (Bill 197)
On May 2, 2019, the Province introduced Bill 108, which proposed changes to the
D.C.A. The Bill was introduced as part of the Province's "More Homes, More Choice:
Ontario's Housing Supply Action Plan." The Bill received Royal Assent on June 6,
2019.
While having received Royal Assent, many of the amendments to the D.C.A. would not
come into effect until proclaimed by the Lieutenant Governor. As of January 1, 2020,
the following provisions had been proclaimed:
e Transitional provisions were in effect which have been replaced by updated
provisions within Bill 197.
e Effective January 1, 2020, rental housing and institutional developments will pay
D.C.s in six equal annual installments, with the first payment commencing at the
date of occupancy. Non-profit housing developments will pay D.C.s in 21 equal
annual installments. Interest may be charged on the installments, and any
unpaid amounts may be added to the property and collected as taxes.
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e Effective January 1, 2020, the D.C. amount for all developments occurring within
two years of a site plan or zoning by-law amendment planning approval (for
applications submitted after this section is proclaimed) shall be determined based
on the D.C. charge in effect on the day of site plan or zoning by-law amendment
application. If the development is not proceeding via these planning approvals,
or if the building permit is issued after the two-year period of application approval,
then the amount is determined the earlier of the date of issuance of a building
permit or occupancy.
In response to the global pandemic that began affecting Ontario in early 2020, the
Province released Bill 197, the COV/D-19 Economic Recovery Act, which provided
amendments to a number of Acts, including the D.C.A. and Planning Act. This Bill also
revised some of the proposed changes identified in Bill 108. Bill 197 was tabled on July
8, 2020 and received Royal Assent on July 21, 2020, however, the changes would not
come into effect until proclaimed by the Lieutenant Governor. On September 18, 2020
the Province proclaimed the remaining amendments to the D.C.A. that were made
through Bill 108 and Bill 197. The following provides a summary of the changes to the
D.C.A. that are now in effect:
List of D.C. Eligible Services
e Under Bill 108 some services were to be included under the D.C.A. and some
would be included under the Community Benefits Charge (C.B.C.) authority.
However, Bill 197 revised this proposed change and has included all services
(with some exceptions) under the D.C.A. These services are as follows:
o Water supply services, including distribution and treatment services.
o Wastewater services, including sewers and treatment services.
o Storm water drainage and control services.
o Services related to a highway.
co Electrical power services.
o Toronto-York subway extension, as defined in subsection 5.1 (1).
o Transit services other than the Toronto-York subway extension.
o Waste diversion services.
o Policing services.
co Fire protection services.
o Ambulance services.
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o Library Services.
o Long-term care services.
o Parks and recreation services (but not the acquisition of land for
parks).
o Public health services.
o Childcare and early years services.
o Housing services.
o Provincial Offences Act Services.
o Services related to emergency preparedness.
o Services related to airports, but only in the Regional Municipality of
Waterloo.
co Additional services as prescribed
Classes of D.C. Services
The D.C.A. had allowed for categories of services to be grouped together into a
minimum of two categories (90% and 100% services).
The Act (as proclaimed) repeals that provision and replaces the above with the four
following subsections:
e AD.C. by-law may provide for any eligible service or capital cost related to any
eligible service to be included in a class, set out in the by-law.
e Aclass may be composed of any number or combination of services and may
include parts or portions of the eligible services or parts or portions of the capital
costs in respect of those services.
e AD.C. by-law may provide for a class consisting of studies in respect of any
eligible service whose capital costs are described in paragraphs 5 and 6 of s. 5 of
the D.C.A.
e Acclass of service set out in the D.C. by-law is deemed to be a single service with
respect to reserve funds, use of monies, and credits.
10% Statutory Deduction
As well, the removal of 10% deduction for soft services under Bill 108 has been
maintained.
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Statutory Exemptions
Statutory exemptions to the payment of D.C.s for the creation of secondary residential
dwelling units in prescribed classes of existing residential buildings or structures
ancillary to existing residential buildings. Furthermore, the creation of a second dwelling
unit in prescribed classes of proposed new residential buildings, including structures
ancillary to dwellings.
Transition
Services, other than those described in paragraphs 1 to 10 of subsection 2 (4) of the
D.C.A. (i.e. 'soft services') within an existing D.C. by-law can remain in effect, even if
the by-law expires, until the earlier of the day the by-law is repealed, the day the
municipality passes a C.B.C. by-law under subsection 37 (2) of the Planning Act, or the
specified date (i.e. September 18, 2022).
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PA,
Chapter 2
Anticipated Development in
the Town of Gananoque
2. Anticipated Development in the Town of
Gananoque
2.1 Requirement of the Act
Chapter 3 provides the methodology for calculating a D.C. as per the D.C.A. Figure 3-1
presents this methodology graphically. It is noted in the first box of the schematic that in
order to determine the D.C. that may be imposed, it is a requirement of Section 5 (1) of
the D.C.A. that "the anticipated amount, type and location of development, for which
development charges can be imposed, must be estimated."
The growth forecast contained in this chapter (with supplemental tables in Appendix A)
provides for the anticipated development for which the Town will be required to provide
services, over a 10-year (late-2020 to late-2030) and longer-term (late-2020 to buildout)
time horizon.
2.2 Basis of Population, Household and Non-Residential
Gross Floor Area Forecast
The D.C. growth forecast has been derived by Watson. In preparing the growth
forecast, the following information sources were consulted to assess the residential and
non-residential development potential for the Town over the forecast period, including:
e Town of Gananoque Official Plan, September 15, 2009;
e Town of Gananoque Updated Uncommitted Reserve Capacity Calculation -- July
2019 Memorandum, J.L. Richards and Associates Limited, July 25, 2019;
e 2006, 2011 and 2016 population, household, and employment Census data;
e Historical residential and non-residential building permit data over the 2010 to
2019 period;
e Residential supply opportunities as provided by the Town; and
e Discussions with Town staff regarding anticipated residential and non-residential
development.
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2.3 Summary of Growth Forecast
A detailed analysis of the residential and non-residential growth forecasts is provided in
Appendix A and the methodology employed is illustrated in Figure 2-1. The discussion
provided herein summarizes the anticipated growth for the Town and describes the
basis for the forecast. The results of the residential growth forecast analysis are
summarized in Table 2-1 below, and Schedule 1 in Appendix A.
As identified in Table 2-1 and Appendix A, Schedule 1, population in the Town is
anticipated to reach approximately 5,870 by late-2030 and 6,660 by buildout, resulting
in an increase of approximately 440 and 1,230 persons, respectively'
Figure 2-1
Population and Household Forecast Model
DEMAND SUPPLY
Development Process
Residential Units
Municipality,
Economic Outlook
Local, region
and Provincial
' The population figures used in the calculation of the 2020 D.C. exclude the net
Census undercount, which is estimated at approximately 2.4%.
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Table 2-1
Town of Gananoque
Residential Growth Forecast Summary
Excluding Census Undercount Housing Units Person Per
Population Population Unit (P.P.U.):
(Including og : Singles & : Total
Y Multip! :
eat Census Population De teeen nena Semi- . Ms . 2 Apartments? Other H ee Id Population/
Undercount)' opulation ne i ' ene Detached Dwellings louseholds Total
ole Wel Households
Mid 2006 5,410 5,285 160 5,125 1,500 195 615 5 2,315 2.283
rs)
2
g Mid 2011 5,320 5,194 164 5,030 1,509 196 631 10 2,346 2.214
2
Mid 2016 5,280 5,159 164 4,995 1,535 200 655 10 2,400 2.150
_ Late 2020 5,560 5,427 173 5,254 1,568 203 788 10 2,570 2.112
n
Oo
2 Late 2030 6,010 5,865 186 5,679 1,660 225 968 10 2,862 2.049
uw
Buildout 6,816 6,655 225 6,430 1,823 266 1,259 10 3,358 1.982
Cc
oO
[e}
c
Source: Derived by Watson & Associates Economists Ltd., 2020.
Note: Buildout is based on wastewater capacity.
* Census undercount estimated at approximately 2.4%. Note: Population including the undercount has been rounded.
2 Includes townhouses and apartments in duplexes.
3 Includes bachelor, 1-bedroom and 2-bedroom+ apartments.
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Figure 2-2
Town of Gananoque
Annual Housing Forecast
90
83
80
70
60 58
2 50
c
--)
D
40
3 35
(o)
Tt 30 28 28 «28 8 igs 80 80 8030
25
10 8 5 (nN ee em gy WG
4 4 4 rE
0
© ap go? gw go go® got go qo go or go wh go wh aw oot wh ww og
Years
mag Historical Gg Low Density [Medium Density GShHigh Density --historical Average
Source: Historical housing activity derived from Statistics Canada building permit data for the Town of Gananoque, 2010-2015, and from Town of Gananoque building permit data from 2016-2019.
' Growth forecast represents calendar year.
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Provided below is a summary of the key assumptions and findings regarding the Town's
D.C. growth forecast:
1. Housing Unit Mix (Appendix A -- Schedules 1 and 6)
e The housing unit mix for the Town was derived from a detailed review of
historical development activity (as per Schedule 6), as well as active residential
development applications and discussions with Town staff regarding anticipated
development trends.
e Based on the above indicators, the 2020 to 2030 household growth forecast for
the Town is comprised of a unit mix of 31% low density units (single detached
and semi-detached), 8% medium density (multiples except apartments) and 61%
high density (bachelor, 1-bedroom and 2-bedroom apartments).
2. Geographic Location of Residential Development (Appendix A -- Schedule 2)
e Schedule 2 summarizes the anticipated amount, type, and location of
development by servicing area for the Town.
e In accordance with forecast demand and available land supply, the amount and
percentage of forecast housing growth between 2020 and 2030 by development
type is summarized below.
Approximate Amount Percentage of
Development Location of Housing Growth, Housing Growth,
2020 to 2030 2020 to 2030
Urban 288 98%
Rural 5 2%
3. Planning Period
e Short- and longer-term time horizons are required for the D.C. process. The
D.C.A. limits the planning horizon for transit services to a 10-year planning
horizon. All other services can utilize a longer planning period if the municipality
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has identified the growth-related capital infrastructure needs associated with the
longer-term growth planning period.
4. Population in New Housing Units (Appendix A - Schedules 3, 4 and 5)
e The number of housing units to be constructed by 2030 in the Town over the
forecast period is presented in Figure 2-2. Over the 2020-2030 forecast period,
the Town is anticipated to average 29 new housing units per year.
e Institutional population' is anticipated to increase by approximately 13 people
between 2020-2030.
e Population in new units is derived from Schedules 3, 4, and 5, which incorporate
historical development activity, anticipated units (see unit mix discussion) and
average persons per unit (P.P.U.) by dwelling type for new units.
e Schedule 7 summarizes the average P.P.U. assumed for new housing units by
age and type of dwelling based on Statistics Canada 2016 custom Census data
for the Town. Due to data limitations, low, medium and high density P.P.U. data
was derived from United Counties of Leeds and Grenville, which includes the
Town, and is outlined in Schedule 7. The total calculated P.P.U. for all density
types has been adjusted upward to account for the P.P.U. trends which has been
recently experienced in both new and older units. Forecasted 25-year average
P.P.U.s by dwelling type are as follows:
o Low density: 2.632
o Mediumdensity: 1.898
o High density?: 1.548
5. Existing Units and Population Change (Appendix A - Schedules 3, 4 and 5)
e Existing households for late-2020 are based on the 2016 Census households,
plus estimated residential units constructed between mid-2016 and Early-2020,
assuming a 6-month lag between construction and occupancy (see Schedule 3).
e The decline in average occupancy levels for existing housing units is calculated
in Schedules 3 through 5, by aging the existing population over the forecast
1 Institutional population largely includes special care facilities such as nursing home or
residences for senior citizens. A P.P.U. of 1.100 depicts 1-bedroom and 2- or more
bedroom units in collective households.
2 Includes bachelor, 1-bedroom and 2- or more bedroom apartments.
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period. The forecast population decline in existing households over the 2020-
2030 forecast period is approximately 134.
6. Employment (Appendix A, Schedules 9a, 9b, 9c)
e The employment projections provided herein are largely based on the activity
rate method, which is defined as the number of jobs in the Town divided by the
number of residents. Key employment sectors include primary, industrial,
commercial/ population-related, institutional, and work at home, which are
considered individually below.
e 2016 employment data' (place of work) for the Town is outlined in Schedule Qa.
The 2016 employment base is comprised of the following sectors:
o O primary (0%);
o 120 work at home employment (5%);
o 693 industrial (27%);
o 1,333 commercial/population related (52%); and
o 415 institutional (16%).
e The 2016 employment by usual place of work, including work at home, is 2,560.
An additional 170 employees have been identified for the Town in 2016 that have
no fixed place of work (N.F.P.O.W.).2
e Total employment, including work at home and N.F.P.O.W. for the Town is
anticipated to reach approximately 3,080 by late-2030 and 3,580 by buildout.
This represents an employment increase of approximately 290 for the 10-year
forecast period and 780 for the longer-term forecast period.
e Schedule 9b, Appendix A, summarizes the employment forecast, excluding work
at home employment and N.F.P.O.W. employment, which is the basis for the
D.C. employment forecast. The impact on municipal services from work at home
employees has already been included in the population forecast. The need for
municipal services related to N.F.P.O.W. employees has largely been included in
the employment forecast by usual place of work (i.e. employment and gross floor
12016 employment is based on Statistics Canada 2016 Place of Work Employment
dataset by Watson & Associates Economists Ltd.
2 No fixed place of work is defined by Statistics Canada as "persons who do not go from
home to the same work place location at the beginning of each shift". Such persons
include building and landscape contractors, travelling salespersons, independent truck
drivers, etc.
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area generated from N.F.P.O.W. construction employment). Furthermore, since
these employees have no fixed work address, they cannot be captured in the
non-residential gross floor area (G.F.A.) calculation.
e Total employment for the Town (excluding work at home and N.F.P.O.W.
employment) is anticipated to reach approximately 2,690 by late-2030 and 3,060
by buildout. This represents an employment increase of approximately 210 for
the 10-year forecast period and 580 for the longer-term forecast period.
7. Non-Residential Sq.ft. Estimates (G.F.A., Appendix A, Schedule 9b)
e Square footage estimates were calculated in Schedule 9b based on the following
employee density assumptions:
o 1,300 sq.ft. per employee for industrial;
o 550 sq.ft. per employee for commercial/population-related; and
o 700 sq.ft. per employee for institutional employment.
e The Town-wide incremental Gross Floor Area (G.F.A.) is anticipated to increase
by 145,800 sq.ft. over the 10-year forecast period and 399,900 sq.ft. over the
longer-term forecast period.
e Interms of percentage growth, the 2020 to 2030 incremental G.F.A. forecast by
sector is broken down as follows:
o industrial -- 25%;
o commercial/population-related -- 52%; and
o institutional -- 23%.
8. Geography of Non-Residential Development (Appendix A, Schedule 9c)
e Schedule 9c summarizes the anticipated amount, type and location of non-
residential development by servicing area for the Town by area.
e Total non-residential growth between 2020-2030 is forecast within the urban
serviced area of the Town.
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a
Chapter 3
The Approach to the
Calculation of the Charge
3. The Approach to the Calculation of the Charge
3.1 Introduction
This chapter addresses the requirements of s.s.5(1) of the D.C.A. with respect to the
establishment of the need for service which underpins the D.C. calculation. These
requirements are illustrated schematically in Figure 3-1.
3.2 Services Potentially Involved
s.s.2 (4) of the D.C.A. sets out the eligible services that can be included in a D.C. By-
law as follows:
e Water supply services, including distribution and treatment services.
e Wastewater services, including sewers and treatment services.
e Storm water drainage and control services.
e Services related to a highway.
e Electrical power services.
e Toronto-York subway extension, as defined in subsection 5.1 (1).
e Transit services other than the Toronto-York subway extension.
e Waste diversion services.
e Policing services.
e Fire protection services.
e Ambulance services.
e Library Services.
e Long-term care services.
e Parks and recreation services (but not the acquisition of land for parks).
e Public health services.
e Childcare and early years services.
e Housing services.
e Provincial Offences Act Services.
e Services related to emergency preparedness.
e Services related to airports, but only in the Regional Municipality of Waterloo.
e Additional services as prescribed.
Watson & Associates Economists Ltd. PAGE 3-1
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In addition to the above eligible services, the D.C.A. also sets out in s.s.7 (3) that a
development charge by-law may provide for a class consisting of studies.
Two ineligible costs defined in s.s.5(3) of the D.C.A. are "computer equipment" and
"rolling stock with an estimated useful life of (less than) seven years..." In addition, local
roads are covered separately under subdivision agreements and related means (as are
other local services).
Table 3-1 identifies the potential components within each service category, whether the
Town provides the service, and whether the service has been included in the proposed
D.C. by-law.
3.3 Increase in Need for Service
The D.C. calculation commences with an estimate of "the increase in the need for
service attributable to the anticipated development," for each service to be covered by
the by-law. There must be some form of link or attribution between the anticipated
development and the estimated increase in the need for service. While the need could
conceivably be expressed generally in terms of units of capacity, s.s.5(1)3, which
requires that municipal council indicate that it intends to ensure that such an increase in
need will be met, suggests that a project-specific expression of need would be most
appropriate.
Watson & Associates Economists Ltd. PAGE 3-2
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Figure 3-1
The Process of Calculating a Development Charge under the Act that must be followed
Anticipated
Development
A
2. Eligible Services
Non-Transit Services
Estimated Increase in Ceiling Re: Historical Service
Need for Service Increased Need Standard = 4,
Subdivision 3. 4,
Agreements 8. Specified Local Services Transit Services
and Consent Needs That Will Frador whet wei
Provisions Be Met Standard 4b.
D.C. Needs 5.
ee 9. Examination of the
Long-term Capital
and Operating Costs
for Capital
Infrastructure 6 Non- Transit Services
"Financially
Asset Management Sustainable" 7,
Pian for All Capital :
Projects to be : :
Transit Services
Funded by D.C.s 7 "Detailed
Of Requirements" 7).
@] a
D.C. Net Capital Costs
Costs for new development vs.
existing development for the term
of the by-law and the balance
a :
Consideration of exemptions,
phase-ins, etc
Watson & Associates Economists Ltd. PAGE 3-3
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Table 3-1
Categories of Municipal Services to be Addressed as Part of the Calculation
Categories of Municipal Services eG. Service Components
Calculation
1. Services Related to a Highway Yes 1.1 Arterial roads
Yes 1.2 Collector roads
Yes 1.3 Bridges, Culverts and
Roundabouts
No 1.4 Local municipal roads
Yes 1.5 Traffic signals
Yes 1.6 Sidewalks and streetlights
Yes 1.7 Active Transportation
Yes 1.8 Works Yard
Yes 1.9 Rolling stock'
2.1 Transit vehicles' & facilities
n/a 2.2 Other transit infrastructure
3. Stormwater Drainage and No 3.1 Main channels and drainage
Control Services trunks
No 3.2 Channel connections
No 3.3 Retention/detention ponds
4. Fire Protection Services No 4.1 Fire stations
No 4.2 Fire pumpers, aerials and
rescue vehicles'
No 4.3. Small equipment and gear
'with 7+ year life time
*same percentage as service component to which it pertains
computer equipment excluded throughout
Watson & Associates Economists Ltd. PAGE 3-4
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Categories of Municipal Services eG. Service Components
Calculation
5. Parks and Recreation Services Ineligible | 5.1 Acquisition of land for parks,
Outdoor Recreation Services woodlots and E.S.A.s
(i.e. Parks and Open Space Yes 5.2 Development of area
and Indoor Recreation) municipal parks
Yes 5.3 Development of district parks
Yes 5.4 Development of municipal-
wide parks
Yes 5.5 Development of special
purpose parks
Yes 5.6 Parks rolling stock' and yards
Yes 5.7 Arenas, indoor pools, fitness
facilities, community centres,
etc. (including land)
Yes 5.8 Recreation vehicles and
equipment!
6. Library Services No 6.1 Public library space (incl.
furniture and equipment)
No 6.2 Library vehicles'*
No 6.3 Library materials
7. Electrical Power Services n/a 7.1 Electrical substations
Se 7.2 Electrical distribution system
n/a 7.3 Electrical system rolling stock
9. Wastewater Services Yes 9.1 Treatment plants
Yes 9.2 Sewage trunks
No 9.3 Local systems
Yes 9.4 Vehicles and equipment!
10. Water Supply Services No 10.1 Treatment plants
No 10.2 Distribution systems
No 10.3 Local systems
No 10.4 Vehicles and equipment'
11. Waste Diversion Services Ineligible | 11.1 Landfill collection, transfer
vehicles and equipment
Ineligible | 11.2 Landfills and other disposal
facilities
n/a 11.3 Waste diversion facilities
n/a 11.4 Waste diversion vehicles and
equipment'
'with 7+ year life time
Watson & Associates Economists Ltd. PAGE 3-5
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Categories of Municipal Services nee. Service Components
Calculation
12. Policing Services No 12.1 Police detachments
No 12.3 Small equipment and gear
No 13.2 Vehicles'
services n/a 14.2 Vehicles'
15. Public Health n/a 15.1 Public Health department
n/a space
15.2 Public Health department
vehicles'
16.1 Social Housing space
17.1 P.O.A. space
18.1 Social service space
n/a 19.2 Vehicles'
Services No Space
20.2 Equipment
21.1 Hospital capital contributions
22. Provision of Headquarters for Ineligible | 22.1 Office space
the General Administration of Ineligible | 22.2 Office furniture
Municipalities and Area Ineligible | 22.3 Computer equipment
Municipal Boards
23. Other Transportation Services Ineligible | 23.1 Ferries
Ineligible | 23.2 Airports (in the Regional
Municipality of Waterloo).
23.2 (Other
24. Provision of Cultural, Ineligible | 24.1 Cultural space (e.g. art
Entertainment and Tourism Ineligible galleries, museums and
Facilities and Convention Ineligible theatres)
Centres 24.2 Tourism facilities and
convention centres
'with 7+ year life time
Watson & Associates Economists Ltd. PAGE 3-6
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Categories of Municipal Services nthe DC. Service Components
Calculation
25. Other Services Yes 25.1 Studies in connection with
acquiring buildings, rolling
stock, materials and
equipment, and improving
land? and facilities, including
the D.C. background study
cost
No 25.2 Interest on money borrowed
to pay for growth-related
capital
'with a 7+ year lifetime
same percentage as service component to which it pertains
Eligibility for
Inclusion in the Description
D.C. Calculation
Town provides the service -- service has been included in the
es
D.C. calculation.
N Town provides the service -- service has not been included in
O ,;
the D.C. calculation.
Town does not provide the service.
Ineligible Service is ineligible for inclusion in the D.C. calculation.
3.4 Local Service Policy
Some of the need for services generated by additional development consists of local
services related to a plan of subdivision. As such, they will be required as a condition of
subdivision agreements or consent conditions. A copy of the Town's Local Service
Policies is included in this report as Appendix D.
3.5 Capital Forecast
Paragraph 7 of s.s.5(1) of the D.C.A. requires that, "the capital costs necessary to
provide the increased services must be estimated." The Act goes on to require two
potential cost reductions and the Regulation sets out the way in which such costs are to
be presented. These requirements are outlined below.
Watson & Associates Economists Ltd. PAGE 3-7
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These estimates involve capital costing of the increased services discussed above.
This entails costing actual projects or the provision of service units, depending on how
each service has been addressed.
The capital costs include:
a) costs to acquire land or an interest therein (including a leasehold interest);
b) costs to improve land;
c) costs to acquire, lease, construct or improve buildings and structures;
d) costs to acquire, lease or improve facilities, including rolling stock (with a useful
life of 7 or more years), furniture and equipment (other than computer
equipment), materials acquired for library circulation, reference or information
purposes;
e) interest on money borrowed to pay for the above-referenced costs;
f) costs to undertake studies in connection with the above-referenced matters; and
g) costs of the D.C. background study.
In order for an increase in need for service to be included in the D.C. calculation,
municipal council must indicate "...that it intends to ensure that such an increase in need
will be met" (S.s.5(1)3). This can be done if the increase in service forms part of a
Council-approved Official Plan, capital forecast or similar expression of the intention of
Council (O.Reg. 82/98 s.3). The capital program contained herein reflects the Town's
approved and proposed capital budgets, master plans, and other reports presented to
Council.
3.6 Treatment of Credits
Section 8 para. 5 of O.Reg. 82/98 indicates that a D.C. background study must set out,
"the estimated value of credits that are being carried forward relating to the service."
s.S.17 para. 4 of the same Regulation indicates that, "...the value of the credit cannot be
recovered from future D.C.s," if the credit pertains to an ineligible service. This implies
that a credit for eligible services can be recovered from future D.C.s. As a result, this
provision should be made in the calculation, in order to avoid a funding shortfall with
respect to future service needs.
Watson & Associates Economists Ltd. PAGE 3-8
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3.7 Classes of Services
Section 7 of the D.C.A. states that a D.C. by-law may provide for any D.C. eligible
service or the capital costs with respect to those services. Further, a class may be
composed of any number or combination of services and may include parts or portions
of each D.C. eligible services. With respect to growth-related studies, Section 7(3) of
the D.C.A. states that:
"For greater certainty, a development charge by-law may provide for a class
consisting of studies in respect of any service listed in subsection 2 (4) whose capital
costs are described in paragraphs 5 and 6 of subsection 5 (3)."
These provisions allow for services to be grouped together to create a class for the
purposes of the D.C. by-law and D.C. reserve funds. The D.C. calculations and draft
by-law provided herein include a class for growth studies. This class is comprised of
the following services:
e Growth Studies
o Roads and Related Services;
o Parks and Recreation Services; and
o Wastewater Services.
3.8 Eligible Debt and Committed Excess Capacity
Section 66 of the D.C.A. states that for the purposes of developing a D.C. by-law, a debt
incurred with respect to an eligible service may be included as a capital cost, subject to
any limitations or reductions in the Act. Similarly, s.18 of O.Reg. 82/98 indicates that
debt with respect to an ineligible service may be included as a capital cost, subject to
several restrictions.
In order for such costs to be eligible, two conditions must apply. First, they must have
funded excess capacity which is able to meet service needs attributable to the
anticipated development. Second, the excess capacity must be "committed," that is,
either before or at the time it was created, Council must have expressed a clear
intention that it would be paid for by D.C.s or other similar charges. For example, this
may have been done as part of previous D.C. processes.
Watson & Associates Economists Ltd. PAGE 3-9
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3.9 Existing Reserve Funds
Section 35 of the D.C.A. states that:
"The money in a reserve fund established for a service may be spent only for capital
costs determined under paragraphs 2 to 8 of subsection 5(1)."
There is no explicit requirement under the D.C.A. calculation method set out in s.s.5(1)
to net the outstanding reserve fund balance as part of making the D.C. calculation;
however, s.35 does restrict the way in which the funds are used in future. As the Town
does not currently impose D.C.s there are no existing D.C. Reserve Funds balances.
3.10 Deductions
The D.C.A. potentially requires that four deductions be made to the increase in the need
for service. These relate to:
e the level of service ceiling;
e uncommitted excess capacity;
e benefit to existing development; and
e anticipated grants, subsidies and other contributions;
The requirements behind each of these reductions are addressed as follows:
3.10.1 Reduction Required by Level of Service Ceiling
This is designed to ensure that the increase in need included in 4.3 does "...not include
an increase that would result in the level of service (for the additional development
increment) exceeding the average level of the service provided in the Town over the 10-
year period immediately preceding the preparation of the background study..." O.Reg.
82.98 (s.4) goes further to indicate that "...both the quantity and quality of a service
shall be taken into account in determining the level of service and the average level of
service."
In many cases, this can be done by establishing a quantity measure in terms of units as
floor area, land area or road length per capita and a quality measure, in terms of the
average cost of providing such units based on replacement costs, engineering
Watson & Associates Economists Ltd. PAGE 3-10
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standards or recognized performance measurement systems, depending on
circumstances. When the quantity and quality factor are multiplied together, they
produce a measure of the level of service, which meets the requirements of the Act, i.e.
cost per unit.
With respect to transit services, the changes to the Act as a result of Bill 73 have
provided for an alternative method for calculating the services standard ceiling. Transit
services must now utilize a forward-looking service standard analysis, described further
in Section 5.1.3.
The average service level calculation sheets for each service component in the D.C.
calculation are set out in Appendix B.
3.10.2 Reduction for Uncommitted Excess Capacity
Paragraph 5 of s.s.5(1) requires a deduction from the increase in the need for service
attributable to the anticipated development that can be met using the Town's "excess
capacity," other than excess capacity which is "committed."
"Excess capacity" is undefined, but in this case must be able to meet some or all of the
increase in need for service, in order to potentially represent a deduction. The
deduction of uncommitted excess capacity from the future increase in the need for
service would normally occur as part of the conceptual planning and feasibility work
associated with justifying and sizing new facilities, e.g. if a road widening to
accommodate increased traffic is not required because sufficient excess capacity is
already available, then widening would not be included as an increase in need, in the
first instance.
3.10.3 Reduction for Benefit to Existing Development
Section 5(1)6 of the D.C.A. provides that, "The increase in the need for service must be
reduced by the extent to which an increase in service to meet the increased need would
benefit existing development." The general guidelines used to consider benefit to
existing development included the following:
e the repair or unexpanded replacement of existing assets that are in need of
repair;
Watson & Associates Economists Ltd. PAGE 3-11
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e an increase in average service level of quantity or quality (compare water as an
example);
e the elimination of a chronic servicing problem not created by growth; and
e providing services where none previously existed (generally considered for water
or wastewater services).
This step involves a further reduction in the need, by the extent to which such an
increase in service would benefit existing development. The level of services cap in
4.9.1 is related but is not the identical requirement. Sanitary, storm and water trunks
are highly localized to growth areas and can be more readily allocated in this regard
than other services such as services related to a highway, which do not have a fixed
service area.
Where existing development has an adequate service level which will not be tangibly
increased by an increase in service, no benefit would appear to be involved. For
example, where expanding existing library facilities simply replicates what existing
residents are receiving, they receive very limited (or no) benefit as a result. On the
other hand, where a clear existing service problem is to be remedied, a deduction
should be made accordingly.
In the case of services such as recreation facilities, community parks, libraries, etc., the
service is typically provided on a municipal-wide system basis. For example, facilities of
the same type may provide different services (i.e. leisure pool vs. competitive pool),
different programs (i.e. hockey vs. figure skating) and different time availability for the
same service (i.e. leisure skating available on Wednesday in one arena and Thursday in
another). As a result, residents will travel to different facilities to access the services
they want at the times they wish to use them, and facility location generally does not
correlate directly with residence location. Even where it does, displacing users from an
existing facility to a new facility frees up capacity for use by others and generally results
in only a very limited benefit to existing development. Further, where an increase in
demand is not met for a number of years, a negative service impact to existing
development is involved for a portion of the planning period.
Watson & Associates Economists Ltd. PAGE 3-12
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3.10.4 Reduction for Anticipated Grants, Subsidies and Other
Contributions
This step involves reducing the capital costs necessary to provide the increased
services by capital grants, subsidies and other contributions (including direct developer
contributions required due to the local service policy) made or anticipated by Council
and in accordance with various rules such as the attribution between the share related
to new vs. existing development (O.Reg. 82.98 s.6). That is, some grants and
contributions may not specifically be applicable to growth or where Council targets
fundraising as a measure to offset impacts on taxes. Moreover, Gas Tax revenues are
typically used to fund non-growth-related works or the non-growth share of D.C.
projects, given that the contribution is not being made in respect of particular growth-
related capital projects.
3.11 Municipal-wide vs. Area Rating
This step involves determining whether all of the subject costs are to be recovered on a
uniform municipal-wide basis or whether some or all are to be recovered on an area-
specific basis. Under the amended D.C.A., it is now mandatory to "consider" area-rating
of services (providing charges for specific areas and services), however, it is not
mandatory to implement area-rating. Further discussion is provided in section 6.3.8.
3.12 Allocation of Development
This step involves relating the costs involved to anticipated development for each period
under consideration and using allocations between residential and non-residential
development and between one type of development and another, to arrive at a schedule
of charges.
Watson & Associates Economists Ltd. PAGE 3-13
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PA,
Chapter 4
Development Charge Eligible
Cost Analysis by Service
4. Development Charge Eligible Cost Analysis by
Service
This chapter outlines the basis for calculating eligible costs for the D.C.s. The services
outlined in Sections 4.1 and 4.2, apply on a uniform-basis across the Town, while those
addressed in Section 4.3 apply only to urban areas. In each case, the required
calculation process set out in s.5(1) paragraphs 2 to 7 in the D.C.A. and described in
Chapter 3, was followed in determining D.C. eligible costs.
The nature of the capital projects and timing identified in this Chapter reflects Council's
current intention. However, over time, Town projects and Council priorities change and
accordingly, Council's intentions may be modified and different capital projects (and
timing) may be required to meet the need for services required by new growth.
4.1 Service Levels and 10-Year Capital Costs for Municipal-
Wide D.C. Calculation
This section evaluates the development-related capital requirements for all of the
municipal-wide services assessed over a 10-year planning period. Each service
component is evaluated on two format sheets: the average historical 10-year level of
service calculation (see Appendix B), which "caps" the D.C. amounts; and the
infrastructure cost calculation, which determines the potential D.C. recoverable cost.
4.1.1 Roads and Related Services
The Town currently maintains 37 km of asphalt roads, 8 km of gravel roads, 3 bridges,
and 4 pedestrian bridges. Additionally, the Town maintains and operates 17,730 sq.ft. of
facility space and 18 items of vehicles and equipment. This historical level of
infrastructure investment equates to a $18,754 per capita level of service. When
applied to a 10-year forecast, the resultant maximum D.C. eligible amount is
approximately $7.97 million.
A review of the Town's roads and related growth-related needs for the forecast period
identified total gross capital costs of $250,000 for a new single-axle truck, which has
been included in the D.C. calculation.
Watson & Associates Economists Ltd. PAGE 4-1
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The net growth-related costs for roads and related services have been allocated
between future residential and non-residential development on the basis of incremental
population to employment growth over the 20-year forecast period (i.e. 67% residential/
33% non-residential).
4.1.2 Parks and Recreation Services
The Town currently maintains a variety of amenities in its parks and 12 km of
recreational trails. Moreover, the Town operates 35,900 sq.ft. of indoor recreation
centre space that is jointly operated with the Township of Leeds and the Thousand
Islands, as well as 15 items of vehicles and equipment. This historical level of
investment produces an average level of service $1,822 per capita, resulting in a
maximum D.C.-eligible amount of $774,600 that could be included in the calculation of
the charge.
The 10-year capital needs for parks and recreation services have a gross capital cost of
approximately $1.93 million. These capital costs include the upgrades to parks,
upgrades to an outdoor rink, and a new soccer pitch. Deductions are made from the
capital costs in recognition of the benefits to existing development totaling $1.78 million,
resulting in in net growth-related capital costs of $147,300 included in the calculation of
the D.C.
As the predominant users of parks and recreation services tend to be residents of the
Town, the forecast growth-related costs have been allocated 95% to residential
development and 5% to non-residential.
4.1.3 Growth-Related Studies
The D.C.A. permits the inclusion of studies undertaken to facilitate the completion of the
Town's capital works program. As discussed in Section 3.7, these studies have been
allocated as a class of services based on each service to which the study relates.
All studies have been allocated to the classes of services in the following manner:
e Roads and Related Services -- 16%
e Parks and Recreation Services -- 9%
e Wastewater Services -- 75%
Watson & Associates Economists Ltd. PAGE 4-2
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A,
The cost of these studies is $70,000, which has been included in the D.C. calculation.
The allocation of the net growth-related costs for the growth-related class between
residential and non-residential development is 67% residential and 33% non-residential
based on the relationship of incremental population and employment growth over the
10-year forecast period.
Watson & Associates Economists Ltd. PAGE 4-3
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Infrastructure Costs Covered in the D.C. Calculation -- Roads and Related Services
Less: Potential D.C. Recoverable Cost
Increased Service Needs canes Post Grants, Subsidies N
Pri .N Attributable to Anticipated Timing ee oPerind Other NetCapital Benefit to and Other Residential p. sacatial
ig) dite Development (year) Estimate Benent Deductions Cost Existing Contributions Total Share "Share.
(2020$) Development Attributable to New
2020-2029 Development 67% 33%
| 1 [Single-AxleTruck [2020-2029] 250,000] - =| | 50.000 ~~ | S500] 167,500 82,500 |
Po
PO
Po
Po
Po
Pe
PO
a ss (OG (QO
a
Watson & Associates Economists Ltd. PAGE 4-4
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Infrastructure Costs Covered in the D.C. Calculation -- Parks and Recreation Services
Less: Potential D.C. Recoverable Cost
Grants,
Increased Service Needs cael Post Subsidies N
. Attributable to Anticipated Timing P . Other Net Capital Benefitto | and Other Residential belie
Prj.No Develo Cost Period . sas Speer Residential
pment (year) : .. Deductions Cost Existing Contributions Total Share
Estimate Benefit . Share
Development Attributable
(2020$)
to New
2020-2029 Development 95% 5%
| 1 [Town Park Revitalization (Phase 1) | 2021 275,000] - | ss] --s275,000 253,960] 21,040 19,988 1,052
| 2 [Town Park Revitalization (Phase 2) | 2022 275,000] - | ~~ --*| 275,000 253,960] 21,040 19,988 1,052
3 [Cord Brown Memorial Canada 150 2021 575,000 575,000 531,008 43,992 41,792 2,200
Outdoor Rink (Phase 2
| 4 |Soccer Pitch 2021-2029 | 800,000] - | ~~ | 800,000 738,794, 61,206 58,146 3,060
Watson & Associates Economists Ltd. PAGE 4-5
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Infrastructure Costs Covered in the D.C. Calculation -- Growth-Related Studies
Less: Potential D.C. Recoverable Cost
Grants,
Increased Service Needs Gross Post Subsidies N
PriNo Attributable to Anticipated Timing Capital Cost Perio 4g NetCapital Benefitto and Other Residential Residential
J Development (year) Estimate Benefi Cost Existing Contributions Total Share
enefit . Share
(2020$) Development Attributable
to New
2020-2029 Development 67% 33%
Development Charges Study 2020 35,000} - | 35000} - | | 35,000 23,450 11,550
Development Charges Study 2025 35,000} - | 35000} - | | 35,000 23,450 11,550
Watson & Associates Economists Ltd. PAGE 4-6
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4.2 Service Levels and Buildout Capital Costs for Urban
D.C. Calculation
This section evaluates the development-related capital requirements for all of the urban
services assessed over a planning period to buildout.
4.2.1 Wastewater Services
The needs to provide wastewater services over the forecast period to buildout have
been reviewed based on capital budgets and updated information provided by Town
staff. The gross capital costs of the anticipated needs over the forecast period total
$6.50 million. Included within these costs are wet well twinning, forcemain twinning,
and upgrades to the lagoon.
Deductions of $5.29 million for the benefit to existing development have been
recognized, resulting in $1.21 million being included in the D.C. calculation.
The net growth-related costs for wastewater services have been allocated between
future residential and non-residential development on the basis of incremental
population to employment growth within the wastewater serviced area over the buildout
forecast period (i.e. 67% residential/ 33% non-residential).
Watson & Associates Economists Ltd. PAGE 4-7
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Infrastructure Costs Covered in the D.C. Calculation -- Wastewater Services
Less: Potential D.C. Recoverable Cost
Gross a
Increased Service Needs Attributable to Timi Capital Post Oth Net Capital Grants, Subsidies Residential Non-
Prj.No Anticipated Development mung Cost Period re es and Other esidential Residential
(year) : ., Deductions Cost Existing Contributions Total Share
Estimate Benefit . Share
(2020$) Development Attributable to New
2020-Buildout Development 67% 33%
| Wastewater Treatment | ||
Wet Well Twinning 2023 | 1,000,000] =- | '| 1,000,000 813,511, | 186,489] 124,948 61,541
Forcemain Twinning (Lagoon to South of 401) 2021 | 2,000,000] - | ~~ '| 2,000,000] 1,627,022/ == ~------*«|_--372,978| 249,895 123,083
Forcemain Twinning (Lagoon to South of 401) 2024 | 2,500,000] - | ~~ | 2,500,000] 2,033,777] ----s | 466,223| ~-- 312,369 153,853
Cell #2 Lagoon Upgrades 2029 500,000] = - | ~~ '| 500,000 406,755] sd, 245 62,474 30,771
Cell #3 Lagoon Upgrades 2025 500,000] = - | ~~ [500,000 406,755{ sd, 245 62,474 30,771
Watson & Associates Economists Ltd. PAGE 4-8
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Watson & Associates Economists Ltd.
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5. D.C. Calculation
Table 5-1 presents the D.C. calculation for wastewater services to be imposed on the
development in the Town over buildout in the urban serviced areas. Table 5-2 presents
the calculation of the D.C.s to be imposed for roads and related services and parks and
recreation services in the Town over the 10-year forecast period.
The D.C.-eligible costs for each service component were developed in Chapter 4 for all
Town services and classes, based on their proposed capital programs.
For the residential calculations, the total cost is divided by the "gross" (new resident)
population to determine the per capita amount. The eligible D.C. cost calculations set
out in Chapter 4 are based on the net anticipated population increase (the forecast new
unit population less the anticipated decline in existing units). The cost per capita is then
multiplied by the average occupancy of the new units to calculate the charge based
upon four forms of housing types (single and semi-detached, apartments 2+ bedrooms,
apartments bachelor and 1-bedroom, and other multiples).
The non-residential D.C. for all services has been calculated uniformly on a per square
foot of G.F.A. basis.
Table 5-3 summarizes the calculated schedule of charges, reflecting the maximum
D.C.s by residential dwelling type and per sq.ft. of non-residential G.F.A. The
calculated charges per single-detached dwelling unit in the urban serviced area are
$3,106. The calculated charges for non-residential development in the urban serviced
area are $1.76 per sq.ft of G.F.A.
Watson & Associates Economists Ltd. PAGE 5-1
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Table 5-1
Urban Serviced Areas D.C. Calculation
2020-Urban Buildout
2020$ D.C.-Eligible Cost 2020$ D.C.-Eligible Cost
SERVICE Residential Non-Residential S.D.U. per sq.ft.
$ $ $ $
1. Wastewater Services 812,160 400,019 1,438 1.00
TOTAL 812,160 4oooi9| 1,438] 1.00 |
D.C.-Eligible Capital Cost 812,160 400,019
Buildout Gross Population/GFA Growth (sq,ft, 1,487 399,900
Cost Per Capita/Non-Residential GFA (sq.ft.) $546.17 $1.00
By Residential Unit Type P.P.U.
Single and Semi-Detached Dwelling 2.632 $1,438
Apartments - 2 Bedrooms + 1.678 $916
Apartments - Bachelor and 1 Bedroom 1.140 $623
Other Multiples 1.898 $1,037
Table 5-2
Municipal-Wide D.C. Calculation
2020-2030
2020$ D.C.-Eligible Cost 2020$ D.C.-Eligible Cost
SERVICE Residential Non-Residential S.D.U. per sq.ft.
$ $ $ $
2. Roads & Related Serices 167,500 82,500 789 0.56
4. Growth-Related Studies
4.1. | Wastewater Services 35,323 17,398 166 0.12
4.2. Roads & Related Senices 7,285 3,588
4.3. Parks & Recreation Services 4,292 2,114
TOTAL | «$354,313 | $112,964 $1,668 $0.76
D.C.-Eligible Capital Cost $354,313 $112,964
10-Year Gross Population/GFA Growth (sq, ft,) 145,800
Cost Per Capita/Non-Residential GFA (sq.ft. $633.83 $0.77
By Residential Unit Type P.P.U.
Single and Semi-Detached Dwelling 2.632 $1,668
Apartments - 2 Bedrooms + 1.678 $1,064
Apartments - Bachelor and 1 Bedroom 1.140 $723
Other Multiples 1.898 $1,203
Watson & Associates Economists Ltd. PAGE 5-2
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Table 5-3
Schedule of Calculated D.C.s
RESIDENTIAL NON-RESIDENTIAL
Service Semi-detached epenmene 2 Bachelor and 4 Other Multiples ret Area)
Dwelling Bedroom
Municipal Wide Services
[Total Municipal Wide Services| .668| --t0ss|_----=~=srze | --Sz0s| SSC
Urban Services
Total Urban Services | tase) a7] Saat] 00
[GRAND TOTAL RURAL AREA | 1686) toes] rae] tats | Te
FGRANDTOTALURBANAREA | 306) aso] agus] za] 76
Watson & Associates Economists Ltd. PAGE 5-3
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PA,
Chapter 6
D.C. Policy Recommendations
and D.C. Policy Rules
6. D.C. Policy Recommendations and D.C. Policy
Rules
6.1 Introduction
Subsection 5 (1) 9 states that rules must be developed:
"...to determine if a development charge is payable in any particular case
and to determine the amount of the charge, subject to the limitations set
out in subsection 6."
Paragraph 10 of the section goes on to state that the rules may provide for exemptions,
phasing in and/or indexing of D.C.s.
Subsection 5 (6) establishes the following restrictions on the rules:
e the total of all D.C.s that would be imposed on anticipated development must not
exceed the capital costs determined under 5(1) 2-8 for all services involved;
e if the rules expressly identify a type of development, they must not provide for it
to pay D.C.s that exceed the capital costs that arise from the increase in the
need for service for that type of development; however, this requirement does not
relate to any particular development; and
e if the rules provide for a type of development to have a lower D.C. than is
allowed, the rules for determining D.C.s may not provide for any resulting
shortfall to be made up via other development.
With respect to "the rules," section 6 states that a D.C. by-law must expressly address
the matters referred to above re subsection 5 (1) paragraphs 9 and 10, as well as how
the rules apply to the redevelopment of land.
6.2 D.C. By-law Structure
It is recommended that:
e Classes of services be established for growth studies;
e The Town uses a uniform municipal-wide D.C. calculation for all municipal
services and classes, except wastewater services;
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e Wastewater services be imposed on the urban service areas of the Town; and
e One municipal D.C. by-law be used for all services and classes.
6.3 D.C. By-law Rules
The following subsections set out the recommended rules governing the calculation,
payment and collection of D.C.s in accordance with section 6 of the D.C.A.
It is recommended that the following sections provide the basis for the D.C.s.:
6.3.1 Payment in any Particular Case
In accordance with the D.C.A., subsection 2 (2), a D.C. be calculated, payable and
collected where the development requires one or more of the following:
"(a)_ the passing of a zoning by-law or of an amendment to a zoning by-
law under section 34 of the Planning Act;
(b) the approval of a minor variance under section 45 of the Planning
Act;
(c) aconveyance of land to which a by-law passed under subsection 50
(7) of the Planning Act applies;
(d) the approval of a plan of subdivision under section 51 of the Planning
Act;
(e€) aconsent under section 53 of the Planning Act;
(f) the approval of a description under section 9 of the Condominium
Act, 1998; or
(g) the issuing of a permit under the Building Code Act, 1992 in relation
to a building or structure."
6.3.2 Determination of the Amount of the Charge
The following conventions be adopted:
1) Costs allocated to residential uses will be assigned to different types of
residential units based on the average occupancy for each housing type
constructed during the previous decade. Costs allocated to non-residential uses
will be assigned based on the amount of square feet of gross floor area
constructed for eligible uses (i.e. industrial, commercial and institutional).
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2) Costs allocated to residential and non-residential uses are based upon a number
of conventions, as may be suited to each municipal circumstance, These are
detailed in Chapter 4 herein and summarized below:
e for parks and recreation and library services, a 5% non-residential attribution
has been made to recognize use by the non-residential sector;
e for roads and related services and growth-related studies, a 67%
residential/33% non-residential allocation has been made based on a
population vs. employment growth ratio over the 10-year forecast period; and
e for wastewater services a 67% residential/33% non-residential allocation has
been made based on population vs. employment growth over the urban
buildout forecast period.
6.3.3 Application to Redevelopment of Land (Demolition and
Conversion)
If a development involves the demolition of and replacement of a building or structure
on the same site, or the conversion from one principal use to another, the developer
shall be allowed a credit equivalent to:
1) the number of dwelling units demolished/converted multiplied by the applicable
residential D.C. in place at the time the D.C. is payable; and/or
2) the gross floor area of the building demolished/converted multiplied by the
current non-residential D.C. in place at the time the D.C. is payable.
The demolition credit is allowed only if the land was improved by occupied structures
and if the demolition permit related to the site was issued less than two years prior to
the issuance of a building permit. The credit can, in no case, exceed the amount of
D.C.s that would otherwise be payable.
6.3.4 Exemptions (full or partial)
a) Statutory exemptions:
e industrial building additions of up to and including 50% of the existing
gross floor area (defined in O.Reg. 82/98, section 1) of the building; for
industrial building additions which exceed 50% of the existing gross floor
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area, only the portion of the addition in excess of 50% is subject to D.C.s
(subsection 4 (3) of the D.C.A.);
e buildings or structures owned by and used for the purposes of any
municipality, local board or Board of Education (section 3); and
e residential development that results only in the enlargement of an existing
dwelling unit, or that results only in the creation of up to two additional
dwelling units (based on prescribed limits set out in section 2 of O.Reg.
82/98).
e The creation of a second dwelling unit in prescribed classes of proposed
new residential buildings, including structures ancillary to dwellings,
subject to the prescribed restrictions based on prescribed limits set out in
s.2 of O.Reg. 82/98.
6.3.5 Phasing in
No provisions for phasing in the D.C. are provided in the draft D.C. by-law.
6.3.6 Timing of Collection
The D.C.s for all services and classes are payable upon issuance of the first building
permit for each dwelling unit, building, or structure, subject to early or late payment
agreements entered into by the Town and an owner under s.27 of the D.C.A., 1997.
Rental housing and institutional developments will pay D.C.s in six equal annual
payments commencing at occupancy. Non-profit housing developments will pay D.C.s
in 21 equal annual payments. Moreover, the D.C. amount for all developments
occurring within 2 years of a Site Plan or Zoning By-law Amendment planning approval
(for applications submitted after January 1, 2020), shall be determined based on the
D.C. in effect on the day of the Site Plan or Zoning By-law Amendment application.
Installment payments and payments determined at the time of Site Plan or Zoning By-
law Amendment application will be subject to annual interest charges. The applicable
interest rate will be equal to the prime lending rate.
For the purposes of administering the By-law, the following definitions are provided as
per O. Reg. 454-19:
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"Rental housing" means development of a building or structure with four or more
dwelling units all of which are intended for use as rented residential premises.
"Institutional development" means development of a building or structure intended for
use,
a. asa long-term care home within the meaning of subsection 2 (1) of the Long-
Term Care Homes Act, 2007;
b. asa retirement home within the meaning of subsection 2 (1) of the Retirement
Homes Act, 2010;
c. by any of the following post-secondary institutions for the objects of the
institution:
i. auniversity in Ontario that receives direct, regular and ongoing operating
funding from the Government of Ontario,
ii. | acollege or university federated or affiliated with a university described in
subclause (i), or
ili. | an Indigenous Institute prescribed for the purposes of section 6 of the
Indigenous Institutes Act, 2017;
d. as amemorial home, clubhouse or athletic grounds by an Ontario branch of the
Royal Canadian Legion; or
e. as a hospice to provide end of life care.
"Non-profit housing development" means development of a building or structure
intended for use as residential premises by,
a. acorporation without share capital to which the Corporations Act applies, that is
in good standing under that Act and whose primary object is to provide housing;
b. acorporation without share capital to which the Canada Not-for-profit
Corporations Act applies, that is in good standing under that Act and whose
primary object is to provide housing; or
c. anon-profit housing co-operative that is in good standing under the Co-operative
Corporations Act.
6.3.7 Indexing
All D.C.s will be subject to mandatory indexing annually on January 1° and every
January 1° thereafter in accordance with the Statistics Canada Quarterly, Non-
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Residential Building Construction Price Index (Table 18-10-0135-01)' for the most
recent year-over-year period.
6.3.8 D.C. Spatial Applicability
The D.C.A. historically has provided the opportunity for a municipality to impose
municipal-wide charges or area specific charges. Sections 2(7) and 2(8) of the D.C.A.
provide that a D.C. by-law may apply to the entire municipality or only part of it and
more than one D.C. by-law may apply to the same area. Amendments to the D.C.A.
now require municipalities to consider the application of municipal-wide and area-
specific D.C.s; s.10(2)(c.1) requires Council to consider the use of more than one D.C.
by-law to reflect different needs from services in different areas.
Most municipalities in Ontario have established uniform, municipal-wide D.C.s. When
area-specific charges are used, it is generally to underpin master servicing and front-
end financing arrangements for more localized capital costs.
It is recommended that Council take the approach to calculate the charges on a uniform
municipal-wide basis for all services/classes of services other than wastewater, which
would calculate a uniform charge across the urban serviced area. Based on the
foregoing, no area-specific D.C.s are recommended at this time.
6.4 Other D.C. By-law Provisions
It is recommended that:
6.4.1 Classes of Services for Reserve Fund and Credit Purposes
It is recommended that the Town's D.C. collections be contributed into 4 separate
reserve funds including:
e roads and related services;
10. Reg. 82/98 referenced "The Statistics Canada Quarterly, Construction Price
Statistics, catalogue number 62-007" as the index source. Since implementation,
Statistics Canada has modified this index twice and the above-noted index is the most
current. The draft by-law provided herein refers to O. Reg. 82/98 to ensure traceability
should this index continue to be modified over time.
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e parks and recreation services;
e growth studies; and
e wastewater services.
6.4.2 By-law In-force Date
The proposed by-laws under D.C.A., 1997 will come into force on the date of by-law
passage.
6.4.3 Minimum Interest Rate Paid on Refunds and Charged for Inter-
Reserve Fund Borrowing
The minimum interest rate is the Bank of Canada rate on the day on which the by-law
comes into force (as per section 11 of O. Reg. 82/98).
6.5 Other Recommendations
It is recommended that Council:
"Classes of services be established for growth studies;"
"Approve the capital project listing set out in Chapter 4 of the D.C. Background
Study dated November 24, 2020, subject to further annual review during the
capital budget process;"
"Determine that no further public meeting is required;" and
"Approve the D.C. By-law as set out in Appendix E."
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Asset Management Plan
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7. Asset Management Plan
The D.C.A. (new section 10(c.2)) requires that the background study must include an
Asset Management Plan (A.M.P) related to new infrastructure. Section 10 (3) of the
D.C.A. provides:
The A.M.P. shall,
a) deal with all assets whose capital costs are proposed to be funded under
the development charge by-law;
b) demonstrate that all the assets mentioned in clause (a) are financially
sustainable over their full life cycle;
c) contain any other information that is prescribed; and
d) be prepared in the prescribed manner.
At a broad level, the A.M.P. provides for the long-term investment in an asset over its
entire useful life along with the funding. The schematic below identifies the costs for an
asset through its entire lifecycle. For growth-related works, the majority of capital costs
will be funded by the D.C. Non-growth-related expenditures will then be funded from
non-D.C. revenues as noted below. During the useful life of the asset, there will be
minor maintenance costs to extend the life of the asset along with additional program
related expenditures to provide the full services to the residents. At the end of the life of
the asset, it will be replaced by non-D.C. financing sources.
In 2012, the Province developed Building Together: Guide for Municipal Asset
Management Plans which outlines the key elements for an A.M.P., as follows:
State of local infrastructure: asset types, quantities, age, condition, financial
accounting valuation and replacement cost valuation.
Desired levels of service: defines levels of service through performance measures
and discusses any external trends or issues that may affect expected levels of service
or the municipality's ability to meet them (for example, new accessibility standards,
climate change impacts).
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New Assets Financing Methods Replacement Assets
Purchase Purchase
Install Install
Commission Commission
Operate Operate
Maintain Maintain
(Throughout Life (Throughout Life
of Assets) of Assets)
(To End of (To End of
Useful Life) Useful Life)
Removal/Decommission Se Removal/Decommission
Disposal Disposal
Asset management strategy: the asset management strategy is the set of planned
actions that will seek to generate the desired levels of service in a sustainable way,
while managing risk, at the lowest lifecycle cost.
Financing strategy: having a financial plan is critical for putting an A.M.P. into action.
By having a strong financial plan, municipalities can also demonstrate that they have
made a concerted effort to integrate the A.M.P. with financial planning and municipal
budgeting, and are making full use of all available infrastructure financing tools.
The above provides for the general approach to be considered by Ontario
municipalities. At this time, there is not a mandated approach for municipalities hence
leaving discretion to individual municipalities as to how they plan for the long-term
replacement of their assets. The Town completed it's A.M.P. in 2013, however, this
A.M.P. did not include all the assets identified in this background study. As a result, the
asset management requirement for this D.C. Background Study has been undertaken
independently of the 2013 A.M.P.
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In recognition to the above schematic, the following table (presented in 2020$) has
been developed to provide the annualized expenditures and revenues associated with
new growth. Note that the D.C.A. does not require an analysis of the non-D.C. capital
needs or their associated operating costs so these are omitted from the table below.
Furthermore, as only the present infrastructure gap has been considered at this time
within the A.M.P., the following does not represent a fiscal impact assessment
(including future tax/rate increases) but provides insight into the potential affordability of
the new assets:
1. The non-D.C. recoverable portion of the projects which will require financing from
Town financial resources (i.e. taxation, rates, fees, etc.). This amount has been
presented on an annual debt charge amount based on 20-year financing.
2. Lifecycle costs for the D.C. capital works have been presented based on a
sinking fund basis. The assets have been considered over their estimated useful
lives.
3. Incremental operating costs for the D.C. services (only) have been included.
4. The resultant total annualized expenditures are $585,700.
5. Consideration was given to the potential new taxation and user fee revenues
which will be generated as a result of new growth. These revenues will be
available to finance the expenditures above. The new operating revenues are
$2.79 million. This amount, totalled with the existing operating revenues of
$21.30 million, provides annual revenues of $24.09 million by the end of the
period.
6. In consideration of the above, the capital plan is deemed to be financially
sustainable.
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Table 8-1
Asset Management -- Future Expenditures and Associated Revenues (2020$)
Urban Build
Out (Total)
Expenditures (Annualized)
ae
Related Capital' $ 519,895
foe el
Capital?
a
sovee Oe Ts sass
Services $ 10,557
a
Pree omtng) |
Total Existing Revenue® $ 21,298,340
(UserPocs. tines Liercen ete) |s_ 276610
(User Fees, Fines, Licences, etc.) $ 2,789,310
'Non-Growth Related component of Projects
? Interim Debt Financing for Post Period Benefit
3 As per Sch. 10 of FIR
Watson & Associates Economists Ltd. PAGE 7-4
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By-Law Implementation
Watson & Associates Economists Ltd.
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8. By-law Implementation
8.1 Public Consultation Process
8.1.1 Introduction
This chapter addresses the mandatory, formal public consultation process (Section
8.1.2), as well as the optional, informal consultation process (Section 8.1.3). The latter
is designed to seek the co-operation and participation of those involved, in order to
produce the most suitable policy. Section 8.1.4 addresses the anticipated impact of the
D.C. on development from a generic viewpoint.
8.1.2 Public Meeting of Council
Section 12 of the D.C.A. indicates that before passing a D.C. by-law, Council must hold
at least one public meeting, giving at least 20 clear days' notice thereof, in accordance
with the Regulation. Council must also ensure that the proposed by-law and
background report are made available to the public at least two weeks prior to the (first)
meeting.
Any person who attends such a meeting may make representations related to the
proposed by-law.
If a proposed by-law is changed following such a meeting, Council must determine
whether a further meeting (under this section) is necessary (i.e. if the proposed by-law
which is proposed for adoption has been changed in any respect, Council should
formally consider whether an additional public meeting is required, incorporating this
determination as part of the final by-law or associated resolution). It is noted that
Council's decision regarding additional public meetings, once made, is final and not
subject to review by a Court or the Local Planning Appeal Tribunal (L.P.A.T.) (formerly
the Ontario Municipal Board (O.M.B.)).
8.1.3 Other Consultation Activity
There are three broad groupings of the public who are generally the most concerned
with Town D.C. policy:
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1. The first grouping is the residential development community, consisting of land
developers and builders, who are typically responsible for generating the majority
of the D.C. revenues. Others, such as realtors, are directly impacted by D.C.
policy. They are, therefore, potentially interested in all aspects of the charge,
particularly the quantum by unit type, projects to be funded by the D.C. and the
timing thereof, and Town policy with respect to development agreements, D.C.
credits and front-ending requirements.
2. The second public grouping embraces the public at large and includes taxpayer
coalition groups and others interested in public policy.
3. The third grouping is the industrial/commercial/institutional development sector,
consisting of land developers and major owners or organizations with significant
construction plans, such as hotels, entertainment complexes, shopping centres,
offices, industrial buildings and institutions. Their primary concern is frequently
with the quantum of the charge, gross floor area exclusions such as basements,
mechanical or indoor parking areas, or exemptions and phase-in or capping
provisions in order to moderate the impact.
8.2 Anticipated Impact of the Charge on Development
The establishment of sound D.C. policy often requires the achievement of an
acceptable balance between two competing realities. The first is that high non-
residential D.C.s can, to some degree, represent a barrier to increased economic
activity and sustained industrial/commercial growth, particularly for capital intensive
uses. Also, in many cases, increased residential D.C.s can ultimately be expected to be
recovered via higher housing prices and can impact project feasibility in some cases
(e.g. rental apartments).
On the other hand, D.C.s or other Town capital funding sources need to be obtained in
order to help ensure that the necessary infrastructure and amenities are installed. The
timely installation of such works is a key initiative in providing adequate service levels
and in facilitating strong economic growth, investment and wealth generation.
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8.3 Implementation Requirements
8.3.1 Introduction
Once the Town has calculated the charge, prepared the complete background study,
carried out the public process and passed a new by-law, the emphasis shifts to
implementation matters.
These include notices, potential appeals and complaints, credits, front-ending
agreements, subdivision agreement conditions and finally the collection of revenues and
funding of projects.
The sections which follow overview the requirements in each case.
8.3.2 Notice of Passage
In accordance with s.13 of the D.C.A., when a D.C. by-law is passed, the Town clerk
shall give written notice of the passing and of the last day for appealing the by-law (the
day that is 40 days after the day it was passed). Such notice must be given no later
than 20 days after the day the by-law is passed (i.e. as of the day of newspaper
publication or the mailing of the notice).
Section 10 of O.Reg. 82/98 further defines the notice requirements which are
summarized as follows:
e notice may be given by publication in a newspaper which is (in the Clerk's
opinion) of sufficient circulation to give the public reasonable notice, or by
personal service, fax or mail to every owner of land in the area to which the by-
law relates;
e s.S.10(4) lists the persons/organizations who must be given notice; and
e s.S.10(5) lists the eight items which the notice must cover.
8.3.3 By-law Pamphlet
In addition to the "notice" information, the Town must prepare a "pamphlet" explaining
each D.C. by-law in force, setting out:
e adescription of the general purpose of the D.C.s;
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e the "rules" for determining if a charge is payable in a particular case and for
determining the amount of the charge;
e the services to which the D.C.s relate; and
e ageneral description of the general purpose of the Treasurer's statement and
where it may be received by the public.
Where a by-law is not appealed to the L.P.A.T., the pamphlet must be readied within 60
days after the by-law comes into force. Later dates apply to appealed by-laws.
The Town must give one copy of the most recent pamphlet without charge, to any
person who requests one.
8.3.4 Appeals
Sections 13 to 19 of the D.C.A. set out the requirements relative to making and
processing a D.C. by-law appeal and L.P.A.T. Hearing in response to an appeal. Any
person or organization may appeal a D.C. by-law to the L.P.A.T. by filing a notice of
appeal with the Town Clerk, setting out the objection to the by-law and the reasons
supporting the objection. This must be done by the last day for appealing the by-law,
which is 40 days after the by-law is passed.
The Town is carrying out a public consultation process, in order to address the issues
that come forward as part of that process, thereby avoiding or reducing the need for an
appeal to be made.
8.3.5 Complaints
A person required to pay a D.C., or his agent, may complain to the Council imposing the
charge that:
e the amount of the charge was incorrectly determined;
e the reduction to be used against the D.C. was incorrectly determined; or
e there was an error in the application of the D.C.
Sections 20 to 25 of the D.C.A. set out the requirements that exist, including the fact
that a complaint may not be made later than 90 days after a D.C. (or any part of it) is
payable. A complainant may appeal the decision of Council to the L.P.A.T.
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8.3.6 Credits
Sections 38 to 41 of the D.C.A. set out a number of credit requirements, which apply
where a municipality agrees to allow a person to perform work in the future that relates
to a service in the D.C. by-law.
These credits would be used to reduce the amount of D.C.s to be paid. The value of
the credit is limited to the reasonable cost of the work which does not exceed the
average level of service. The credit applies only to the service to which the work
relates, unless the Town agrees to expand the credit to other services for which a D.C.
is payable.
8.3.7 Front-Ending Agreements
The Town and one or more landowners may enter into a front-ending agreement which
provides for the costs of a project which will benefit an area in the Town to which the
D.C. by-law applies. Such an agreement can provide for the costs to be borne by one
or more parties to the agreement who are, in turn, reimbursed in future by persons who
develop land defined in the agreement.
Part Ill of the D.C.A. (Sections 44 to 58) addresses front-ending agreements and
removes some of the obstacles to their use which were contained in the D.C.A., 1989.
Accordingly, the Town assesses whether this mechanism is appropriate for its use, as
part of funding projects prior to Town funds being available.
8.3.8 Severance and Subdivision Agreement Conditions
Section 59 of the D.C.A. prevents a municipality from imposing directly or indirectly, a
charge related to development or a requirement to construct a service related to
development, by way of a condition or agreement under s.51 or s.53 of the Planning
Act, except for:
e "local services, related to a plan of subdivision or within the area to which the
plan relates, to be installed or paid for by the owner as a condition of approval
under section 51 of the Planning Act;" and
e "local services to be installed or paid for by the owner as a condition of approval
under section 53 of the Planning Act."
Watson & Associates Economists Ltd. PAGE 8-5
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It is also noted that s.s.59(4) of the D.C.A. requires that the municipal approval authority
for a draft plan of subdivision under s.s.51(31) of the Planning Act, use its power to
impose conditions to ensure that the first purchaser of newly subdivided land is
informed of all the D.C.s related to the development, at the time the land is transferred.
In this regard, if the municipality in question is a commenting agency, in order to comply
with subsection 59(4) of the D.C.A. it would need to provide to the approval authority,
information regarding the applicable municipal D.C.s related to the site.
If the municipality is an approval authority for the purposes of section 51 of the Planning
Act, it would be responsible to ensure that it collects information from all entities which
can impose a D.C.
The most effective way to ensure that purchasers are aware of this condition would be
to require it as a provision in a registered subdivision agreement, so that any purchaser
of the property would be aware of the charges at the time the title was searched prior to
closing a transaction conveying the lands.
Watson & Associates Economists Ltd. PAGE 8-6
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Appendices
ZA
Appendix A
Background Information on
Residential and Non-
Residential Growth Forecast
Schedule 1
Town
Residential Growth Forecast Summary
Excluding Census Undercount Housing Units Person Per
Population Population Unit (P.P.U.):
(Including og : Singles & : Total
Y Multip! :
eat Census Population De teeen nena Semi- . Ms . 2 Apartments? Other H ee Id Population/
Undercount)' opulation ne i ' ene Detached Dwellings louseholds Total
ole Wel Households
Mid 2006 5,410 5,285 160 5,125 1,500 195 615 5 2,315 2.283
rs)
2
g Mid 2011 5,320 5,194 164 5,030 1,509 196 631 10 2,346 2.214
2
Mid 2016 5,280 5,159 164 4,995 1,535 200 655 10 2,400 2.150
_ Late 2020 5,560 5,427 173 5,254 1,568 203 788 10 2,570 2.112
n
Oo
2 Late 2030 6,010 5,865 186 5,679 1,660 225 968 10 2,862 2.049
uw
Buildout 6,816 6,655 225 6,430 1,823 266 1,259 10 3,358 1.982
Cc
oO
[e}
c
Source: Derived by Watson & Associates Economists Ltd., 2020.
Note: Buildout is based on wastewater capacity.
* Census undercount estimated at approximately 2.4%. Note: Population including the undercount has been rounded.
2 Includes townhouses and apartments in duplexes.
3 Includes bachelor, 1-bedroom and 2-bedroom+ apartments.
Watson & Associates Economists Ltd. PAGE A-2
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Figure A-1
Town
Annual Housing Forecast
90
83
80
70
60 58
2 50
c
--)
D
40
3 35
(o)
Tt 30 28 28 «28 8 igs 80 80 8030
25
10 8 5 (nN ee em gy WG
4 4 4 rE
0
© ap go? gw go go® got go qo go or go wh go wh aw oot wh ww og
Years
mag Historical Gg Low Density [Medium Density GShHigh Density --historical Average
Source: Historical housing activity derived from Statistics Canada building permit data for the Town of Gananoque, 2010-2015, and from Town of Gananoque building permit data from 2016-2019.
' Growth forecast represents calendar year.
Watson & Associates Economists Ltd. PAGE A-3
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Schedule 2
Town
Estimate of the Anticipated Amount, Type and Location of
Residential Development for Which Development Charges can be Imposed
Gross Net Population Net Population
Development Timing Single & Semi- Multiples? A 2 Total Population Existing Unit Increase, Institutional Includin
Location Detached uitiples partments Residential In New Units Population Excluding Population ae 9
, are Institutional
Units Change Institutional
Urban
Rural
2020 - 2030 91 22 179 VASE) 559 -134 425 13 438
Town of Gananoque
2020 - Buildout 255 63 471 789 1,518 -343 1,176 52 1,228
Source: Derived by Watson & Associates Economists Ltd., 2020.
" Includes townhouses and apartments in duplexes.
? Includes accessory apartments, bachelor, 1-bedroom and 2-bedroom+ apartments.
Note: Numbers may not add to totals due to rounding.
Watson & Associates Economists Ltd. PAGE A-4
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Schedule 3
Town
Current Year Growth Forecast
Mid 2016 to Late 2020
Mid 2016 Population 5,159
Occupants of Units (2) 170
New Housing Units, multiplied by P.P.U. (3) 1.831
Mid 2016 to Late 2020 gross population increase 310
Occupants of New Units 8
Equivalent Institutional Units, multiplied by P.P.U. (3) 1.100
Mid 2016 to Late 2020 gross population increase 9 |
Decline in Housing Units (4) 2,400
Unit Occupancy, multiplied by P.P.U. decline rate (5) -0.021
Mid 2016 to Late 2020 total decline in population 51
Population Estimate to Late 2020 5,427
Net Population Increase, Mid 2016 to Late 2020
(1) 2016 population based on Statistics Canada Census unadjusted for Census undercount.
(2) Estimated residential units constructed, Mid-2016 to the beginning of the growth period assuming a six-month lag between construction and
occupancy.
(3) Average number of persons per unit (P.P.U.) is assumed to be:
Structural Type Persons Per Unit" % Distribution of Weighted Persons
yp (P.P.U.) Estimated Units? Per Unit Average
Singles & Semi Detached 2.468 20% 0.482
Multiples (6) 1.683 2% 0.030
Apartments (7) 1.676 79% 1.319
Total 100% 1.831
"Based on 2016 Census custom database
2 Based on Building permit/completion activity
(4) 2016 households taken from Statistics Canada Census.
(5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and
changing economic conditions.
(6) Includes townhouses and apartments in duplexes.
(7) Includes bachelor, 1-bedroom and 2-bedroom+ apartments.
Note: Numbers may not add to totals due to rounding.
Watson & Associates Economists Ltd. PAGE A-5
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Schedule 4
Town
Ten Year Growth Forecast
Late 2020 to Late 2030
Late 2020 Population 5,427
Occupants of Units (2) 293
New Housing Units, multiplied by P.P.U. (3) 1.913
Late 2020 to Late 2030 gross population increase oa en
Occupants of New Units 12
Equivalent Institutional Units, multiplied by P.P.U. (3) 1.100
Late 2020 to Late 2030 gross population increase 13
Decline in Housing Units (4) 2,570
Unit Occupancy, multiplied by P.P.U. decline rate (5) -0.052
Late 2020 to Late 2030 total decline in population -134
Population Estimate to Late 2030 5,865
Net Population Increase, Late 2020 to Late 2030
(1) Late 2020 Population based on:
2016 Population (5,159) + Mid 2016 to Late 2020 estimated housing units to beginning of forecast period (170 x 1.831 = 310) + (8x 1.1 =9)
+ (2,400 x -0.021 = -51) = 5,427
(2) Based upon forecast building permits/completions assuming a lag between construction and occupancy.
(3) Average number of persons per unit (P.P.U.) is assumed to be:
Structural Type Persons Per Unit' % Distribution of Weighted Persons
yp (P.P.U.) Estimated Units? Per Unit Average
Singles & Semi Detached 2.632 31% 0.823
Multiples (6) 1.898 7% 0.141
Apartments (7) 1.548 61% 0.949
one bedroom or less 1.140
two bedrooms or more 1.678
Total 100% 1.913
'Persons per unit based on adjusted Statistics Canada Custom 2016 Census database.
2 Forecast unit mix based upon historical trends and housing units in the development process.
(4) Late 2020 households based upon 2016 Census (2,400 units) + Mid 2016 to Late 2020 unit estimate (170 units) = 2,570 units.
(5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions.
(6) Includes townhouses and apartments in duplexes.
(7) Includes bachelor, 1-bedroom and 2-bedroom+ apartments.
Note: Numbers may not add to totals due to rounding.
Watson & Associates Economists Ltd. PAGE A-6
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Schedule 5
Town
Buildout Growth Forecast
Late 2020 to Buildout
Late 2020 Population 5,427
Occupants of Units (2) 789
New Housing Units, multiplied by P.P.U. (3) 1.926
Late 2020 to Buildout gross population increase 1,518 1,518
Occupants of New Units 48
Equivalent Institutional Units, multiplied by P.P.U. (3) 1.100
Late 2020 to Buildout gross population increase 52
Decline in Housing Units (4) 789
Unit Occupancy, multiplied by P.P.U. decline rate (5) -0.435
Late 2020 to Buildout total decline in population -343
Population Estimate to Buildout 6,654
Net Population Increase, Late 2020 to Buildout 1,228
(1) Late 2020 Population based on:
2016 Population (5,159) + Mid 2016 to Late 2020 estimated housing units to beginning of forecast period (170 x 1.831 = 310) + (8x 1.1 =9)
+ (2,400 x -0.021 = -51) = 5,427
(2) Based upon forecast building permits/completions assuming a lag between construction and occupancy.
(3) Average number of persons per unit (P.P.U.) is assumed to be:
Structural Type Persons Per Unit" % Distribution of Weighted Persons
yp (P.P.U.) Estimated Units? Per Unit Average
Singles & Semi Detached 2.632 32% 0.849
Multiples (6) 1.898 8% 0.152
Apartments (7) 1.548 60% 0.925
one bedroom or less 1.140
two bedrooms or more 1.678
Total 100% 1.926
"Persons per unit based on Statistics Canada Custom 2016 Census database.
2 Forecast unit mix based upon historical trends and housing units in the development process.
(4) Late 2020 households based upon 2,400 (2016 Census) + 170 (Mid 2016 to Late 2020 unit estimate) = 2,570
(5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions.
(6) Includes townhouses and apartments in duplexes.
(7) Includes bachelor, 1-bedroom and 2-bedroom+ apartments.
Note: Numbers may not add to totals due to rounding.
Watson & Associates Economists Ltd. PAGE A-7
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Schedule 6
Town
Historical Residential Building Permits
Years 2010 to 2019
Residential Building Permits
Year
Singles &
Semi Multiples' § Apartments? Total
Detached
2010 4 0 0 4
2011 8 0 0 8
2012 5 0 0 5
2013 2 0 23 25
2014 3 1 0 4
Sub-total 22 1 23 46
Average (2010 - 2014) 4 0 5 9
% Breakdown 47.8% 2.2% 50.0% 100.0%
2015 5 0 23 28
2016 3 0 1 4
2017 6 2 75 83
2018 6 0 1 7
2019 16 0 42 58
Sub-total 36 2 142 180
Average (2015 - 2019) 7 0 28 36
% Breakdown 20.0% 1.1% 78.9% 100.0%
2010 - 2019
Total 58 3 165 226
Average 6 0 17 23
% Breakdown 25.7% 1.3% 73.0% 100.0%
Source: Historical housing activity derived from Statistics Canada building permit data for the Town of
Gananoque, 2010-2015, and from Town of Gananoque building permit data from 2016-2019.
" Includes townhouses and apartments in duplexes.
? Includes bachelor, 1 bedroom and 2 bedroom+ apartments.
Watson & Associates Economists Ltd. PAGE A-8
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Schedule 7
Town
Person Per Unit by Age and Type of Dwelling
(2016 Census)
Dwelling <1BR 1BR 2BR 3/4 BR 5+ BR Total 25 Year Average 25 Year Average Adjusted'
1-5 1.400 1.823 2.739 4.000 2.468
ee
Total : 1.578 1.835 2.547 3.438 2.459 [III [
Age of Multiples"
Dwelling <1BR 1 BR 2BR 3/4 BR 5+ BR Total 25 Year Average 25 Year Average Adjusted*
a dS
Pew fo ff a rag
11-15 1.500 - 1.455
pasa [| df CdS) ifm
bat] ae ass
Total . 1.348 1.570 2.565 : 2.060 [REI inn
Age of Apartments?
Dwelling <1BR 1BR 2BR 3/4 BR 5+ BR Total 25 Year Average 25 Year Average Adjusted'
1-5 - - 1.905 - - 1.676
Pass ower) az} a.664] ast) | tage) SSCidES SSCS
Total 1.000 1.118 1.673 2.294 : 1.504 [I
Age of All Density Types
Dwelling <1BR 1BR 2BR 3/4 BR 5+ BR Total
Pots || ts] tra] 27) sont] 2328
6-10 - 1.707 2.798 3.559 2.585
16-20 1.083 1.676 2.609 4.318 2.492
| 2025 | | 200} 4.680) 2750/ s07a| _a.sea
25-35 - 1.179 1.827 2.596 3.500 2.374
Total 1.176 1.260 1.772 2.548 3.423 2.310
" Includes townhouses and apartments in duplexes.
2 Includes bachelor, 1 bedroom and 2 bedroom+ apartments.
3 Adjusted based on 2001-2016 historical trends.
Note: Does not include Statistics Canada data classified as 'Other'
P.P.U. Not calculated for samples less than or equal to 50 dwelling units, and does not include institutional population.
Watson & Associates Economists Ltd. PAGE A-9
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yA
Appendix B
Historical Level of Service
Calculations
Service: Roads
Unit Measure: Centreline km of roadways
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ei sikn)
GO GS GO OO QO OO NO
GO GG OO OO OO
pf
(GD GO (OY QO I I (I
GO GS GO OO QO OO NO
GO GS GO OO QO OO NO
GO GG OO OO OO
pf
(GD GO (OY QO I I (I
GO GS GO OO QO OO NO
GO GS GO OO QO OO NO
GO GG OO OO OO
pT
Total --Citi'"';'iLSC'"(SsCi'i BB] 45.28] 45.28] --45.28| 45.28] 45.28] 45.28] = 45.28] 45.28]
10 Year Average 2010-2019
D.C. Amount (before deductions) 10 Year
Watson & Associates Economists Ltd. PAGE B-2
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Service: Bridges, Culverts & Structures
Unit Measure: Number of Bridges, Culverts & Structures
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Value
($/item)
GO GS GO OO QO OO NO
GO GG OO OO OO
pf
(GD GO (OY QO I I (I
GO GS GO OO QO OO NO
GO GS GO OO QO OO NO
GO GG OO OO OO
pf
(GD GO (OY QO I I (I
GO GS GO OO QO OO NO
GO GS GO OO QO OO NO
GO GG OO OO OO
pf
DG ON GO QOD QO OO I
Total fT
10 Year Average 2010-2019
D.C. Amount (before deductions) 10 Year
Watson & Associates Economists Ltd. PAGE B-3
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Sernice: Depots and Domes
Unit Measure: ft? of building area
2020 = Value/sq.ft.
rn Bld'g with land,
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 .
Value site works,
($/sq. ft.) etc.
GG OG (QO QO (O
GG OG (QO QO (O
GG OG (QO QO (O
GG OG (QO QO (O
GG OG (QO QO (O
GG OG (QO QO (O
GG OG (QO QO (O
GG OG (QO QO (O
GG OG (QO QO (O
PT
Total 87,730] 17,730 17,730] 17,730 | 17,730] 17,730 17,730] 17,730] 17,730 17,730) |
10 Year Average 2010-2019
D.C. Amount (before deductions) 10 Year
Watson & Associates Economists Ltd. PAGE B-4
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Service: Roads and Related Vehicles
Unit Measure: No. of vehicles and equipment
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Value
($/Vehicle)
Vehicles
Plow Truck 1 1 1 1 1 1 2 2 3 3 $246,800
Fforest af af af a a aaa stzatn
Backhoe 1 1 1 1 1 1 1 1 1 1 $172,100
| Brush Chipper Te et $70,400
Sweeper 1 1 1 1 1 1 1 1 1 1 $252,900
| Trackless Te ee a 2 | $161,800
pf
DG ON GO QOD QO OO I
Total CC TS] tt] |] 7] CS
10 Year Average 2010-2019
D.C. Amount (before deductions) 10 Year
Watson & Associates Economists Ltd. PAGE B-5
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Service: Parkland Amenities
Unit Measure: No. of parkland amenities
2020 Val
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 \Slitemn).
Baseball Diamond $500,000
Junior Baseball Diamond $150,000
Junior Soccer Fields $200,000
Playgrounds $80,000
Skateboard/BMX Park $900,000
Splashpad PO Tt tt ttt tt $500,000
$80,000
Washroom Buildings $50,000
$30,000
Outdoor Rink PoC | | 1 $2,500,000
Dog Park po TE ttt tt $20,000
GG GO GO GOO CO GO
(GO GS GS QO QO OO
Total --";'"'('<'iYTCtC Ct eT ttt
5,052 5,030 5,017 4,996 5,003 4,979 4,994 4,993 5,125 5,130
Per Capita Standard 0.0032 0.0036 0.0038 0.0040 0.0040 0.0042 0.0042 0.0042 0.0043 0.0045
10 Year Average 2010-2019
Quantity Standard 0.0040
Quality Standard $156,730
Sernice Standard $627
D.C. Amount (before deductions) 10 Year
Forecast Population
$ per Capita $627
Eligible Amount $266,441
Watson & Associates Economists Ltd. PAGE B-6
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Service: Parkland Trails
Unit Measure: Linear Metres of Paths and Trails
2020 Value
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ($/ Linear
Metre)
a GN GO GO OO OO OO
a (ON GO (OD (O(N (OO S(O
GD GN GOD (ON QO OO I
a GS GO QOD QO OO
a GS GO QOD QO OO
a GN GO GO OO OO OO
a (ON GO (OD (O(N (OO S(O
GD GN GOD (ON QO OO I
a GS GO QOD QO OO
a GN GO GO OO OO OO
a GO GO GO (QO QO OO
Total = as C--C"';'"';C*rL:SCédK2«QO | 12,000] 12,000] 12,000] 12,000] 12,000| 12,000| 12,000] 12,000] 12,000; _--_--i|f
10 Year Average 2010-2019
D.C. Amount (before deductions) 10 Year
Watson & Associates Economists Ltd. PAGE B-7
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Service: Indoor Recreation Facilities
Unit Measure: ft? of building area
2020 ~=Value/sq.ft.
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 zis noha ane
Value site works,
($/sq. ft.) etc.
S(O (QO (OOO (OO
a GO OO GG OO GO
GG GD GY (OY (OD (OY CO CO
GG GD GY (OY (OD (OY CO CO
GG GD GY (OY (OD (OY CO CO
S(O (QO (OOO (OO
a GO OO GG OO GO
GG GD GY (OY (OD (OY CO CO
GG GD GY (OY (OD (OY CO CO
GG GD GY (OY (OD (OY CO CO
GG GD GY (OY (OD (OY CO CO
S(O (QO (OOO (OO
a GO OO GG OO GO
Gn GD GY (OO (OY (OO (OR QO SO
Total = as t--"'CSNCCC*t:«CC#35;,900/ 35,900 35,900] 35,900| 35,900| 35,900| 35,900| --35,900| 35,900| 35,900| =| _--_--i|
10 Year Average 2010-2019
D.C. Amount (before deductions) 10 Year
Watson & Associates Economists Ltd. PAGE B-8
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Sernice: Recreation Vehicles and Equipment
Unit Measure: No. of vehicles and equipment
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Value
($/Vehicle)
PickupTruck CT 845,200)
QO QO GOO (OO GO
a QO (OS (QO (CO OO
GD QO (QO (I (O (OOO
QO QO GOO (OO GO
GD QO (QO (I (O (OOO
QO QO GOO (OO GO
GD QO (QOS (QO (GO QO OO
Total CT TTS] StS] 5] 5] 5 tS
10 Year Average 2010-2019
D.C. Amount (before deductions) 10 Year
Watson & Associates Economists Ltd. PAGE B-9
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a
Appendix C
Long Term Capital and
Operating Cost Examination
Appendix C: Long-Term Capital and Operating
Cost Examination
As a requirement of the D.C.A. under subsection 10(2)(c), an analysis must be
undertaken to assess the long-term capital and operating cost impacts for the capital
infrastructure projects identified within the D.C. As part of this analysis, it was deemed
necessary to isolate the incremental operating expenditures directly associated with
these capital projects, factor in cost savings attributable to economies of scale or cost
sharing where applicable, and prorate the cost on a per unit basis (i.e. sq.ft. of building
space, per vehicle, etc.). This was undertaken through a review of the Town's 2020
Financial Information Return.
In addition to the operational impacts, over time the initial capital projects will require
replacement. This replacement of capital is often referred to as lifecycle cost. By
definition, lifecycle costs are all the costs which are incurred during the life of a physical
asset, from the time its acquisition is first considered, to the time it is taken out of
service for disposal or redeployment. The method selected for lifecycle costing is the
sinking fund method which provides that money will be contributed annually and
invested, so that those funds will grow over time to equal the amount required for future
replacement.
Table C-1 depicts the annual operating impact resulting from the proposed gross capital
costs at the time they are all in place. It is important to note that, while municipal
program expenditures will increase with growth in population, the costs associated with
the new infrastructure (i.e. facilities) would be delayed until the time these works are in
place.
Table C-1
Operating and Capital Expenditure Impacts for Future Capital Expenditures
ANNUAL
4. GrowthRelated Studies | TT
frotal Top | 80,557] 5,706 |
Watson & Associates Economists Ltd. PAGE C-2
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Appendix D
Local Service Policy
Watson & Associates Economists Ltd. PAGE D-1
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Appendix D: Local Service Policy
Some of the need for services generated by additional development consists of local
services related to a plan of subdivision. As such, they will be required as a condition of
subdivision agreements or consent conditions. The following local service guidelines
are proposed to delineate the jurisdiction for capital cost recovery (i.e. local service or
D.C.s).
1. Roads
a. Local streets and collector roads internal to development - Direct
developer responsibility under s.59 of the D.C.A. (as a local service).
b. Roads (collector and arterial) external to development - Include in D.C.
calculation to the extent permitted under s.5(1) of the D.C.A. (dependent
on local circumstances).
2. Traffic Signals
a. Traffic signalization within or external to development -- Include in D.C.
calculation to the extent permitted under s.5(1) of the D.C.A.
3. Intersection Improvements
a. New roads (collector and arterial) and road (collector and arterial)
improvements -- Include as part of road costing, to limits of ROW.
b. Intersections improvements within specific developments and all works
necessary to connect to entrances (private and specific subdivision) to the
roadway - Direct developer responsibility under s.59 of D.C.A. (as a local
service).
c. Intersection improvements on other roads due to development growth
increasing traffic -- Include in D.C. calculation.
4. Streetlights
a. Streetlights on external roads -- Include in D.C. calculation (linked to
collector road funding source).
b. Streetlights within specific developments -- Direct developer responsibility
under s.59 of D.C.A. (as a local service).
Watson & Associates Economists Ltd. PAGE D-2
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5. Sidewalks
a. Sidewalks on Town roads - Linked to collector road funding source.
b. Other sidewalks external to development (which are a local service within
the area to which the plan relates) - Direct developer responsibility as a
local service provision (under s.59 of D.C.A.).
6. Bike Routes/Bike Lanes/Bike Paths/Multi-Use Trails/Naturalized Walkways
a. Bike routes and bike lanes, within road allowance, external to
development -- Include in D.C. road costs, consistent with the service
standard provisions of the D.C.A., s.5(1).
b. Bike paths/multi-use trails/naturalized walkways external to development --
Include in Municipal D.C.s consistent with the service standard provisions
of the D.C.A., s.5(1).
c. Bike lanes, within road allowance, internal to development -- Direct
developer responsibility under s.59 of the D.C.A. (as a local service).
7. Noise Abatement Measures
a. Internal to Development - Direct developer responsibility though local
service provisions (s.59 of D.C.A.).
8. Traffic Control Systems
a. Include in D.C. calculation.
9. Land Acquisition for Road Allowances
a. Land acquisition for arterial roads -- Dedication under the Planning Act
subdivision provisions (s.51) through development lands; in areas with
limited or no development, include in D.C. calculation (to the extent
eligible).
b. Land acquisition for collector roads -- Dedication under the Planning Act
subdivision provision (s.51) through development lands (up to 27 metre
right-of-way); in areas with limited or no development, include in D.C.
calculation (to the extent eligible).
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10.Land Acquisition for Easements
a. Easement costs external to subdivisions shall be included in D.C.
calculation.
11.Storm Water Management
a. Quality and quantity Works, direct developer responsibility through local
service provisions (s. 59 of D.C.A.).
12.Water
a. Treatment facilities, pumping stations and works associated with zone
boundaries to be included within the DC.
b. Watermains external to subdivisions included in the DC.
c. Marginal costs of waterworks within the subdivision included in DC at 300
mm nominal diameter or above.
d. Connections to trunk mains and pumping stations to service specific
areas, to be direct developer responsibility.
13. Wastewater
a. Treatment facilities and pumping stations to be included within the DC.
b. Sanitary sewers external to subdivisions included in the DC.
c. Marginal costs of sanitary sewer works within the subdivision included in
DC at 200 mm nominal diameter or above and extra depth to
accommodate external lands.
d. Connections to trunk mains and pumping stations to service specific
areas, to be direct developer responsibility.
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CA
Appendix E
Proposed Development
Charges By-law
THE CORPORATION OF THE TOWN OF GANANOQUE
BY-LAW NO. _____
BEING A BY-LAW OF THE CORPORATION OF THE TOWN OF GANANOQUE
WITH RESPECT TO DEVELOPMENT CHARGES
Whereas Section 2(1) of the Development Charges Act, 1997, S.O. 1997, c. 27
(hereinafter called the Act) enables the Council of a municipality to pass by-laws for the
imposition of development charges against land located in the municipality for increased
capital costs required because of the increased need for services arising from
development in the area to which the by-law applies;
And whereas the Council of the Town of Gananoque, at its meeting of ;
2020, approved a report entitled Town of Gananoque 2020 Development Charges
Background Study;
And whereas the Council has given Notice in accordance with Section 12 of the
Development Charges Act, 1997 of its development charges proposal and held a public
meeting on ;
And whereas the Council has heard all persons who applied to be heard in objection
to, or in support of, the development charges proposal at such public meeting and
provided a subsequent period for written communications to be made;
And whereas the Council, in adopting the Town of Gananoque Development Charges
Background Study on , 2020, directed that development charges be imposed
on land under development or redevelopment within the geographical limits of the
municipality as hereinafter provided.
Now, therefore, the Council of the Corporation of the Town of Gananoque enacts
as follows:
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1. DEFINITIONS
In this by-law,
(1) | "Accessory" means when used to describe a use, building, or structure,
that the use, building, or structure is naturally or normally incidental,
subordinate, and exclusively devoted to a min use, building, or structure
located on the same lot therewith;
(2) "act" means the Development Charges Act, 1997, S.O. 1997, c. 27, as
amended;
(3) "agricultural use" means lands, buildings, or structures, excluding any
portion thereof used as a dwelling unit or for a commercial use, used or
designed or intended for use for the purpose of a bona fide farming
operation including, but not limited to, animal husbandry, dairying,
livestock, fallow, field crops, removal of sod, forestry, fruit farming,
greenhouses, horticulture, market gardening, pasturage, poultry keeping,
and equestrian facilities;
(4) "apartment dwelling" means a dwelling consisting of four or more dwelling
units, which units have a common entrance from street level and common
halls and /or stairs, elevators, and yards;
(5) "bedroom" means any room used or designed or intended for use as
sleeping quarters including but not limited to, a den, a study, a family
room, or other similar use;
(6) "building" means a structure having a roof supported by columns or walls
or directly on the foundation and used for the shelter and accommodation
of persons, animals, or goods and without liming the foregoing, includes
buildings as defined the Building Code Act;
(7) "capital costs" means costs incurred or proposed to be incurred by the
municipality or a local board thereof directly or under an agreement,
(a) to acquire land or an interest in land,
(b) to improve land,
(c) to acquire, construct or improve buildings and structures,
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(d) -- to acquire, construct or improve facilities including:
(i) rolling stock, furniture and equipment with an estimated
useful life of seven years or more,
(ii) materials acquired for circulation, reference or information
purposes by a library board as defined in the Public Libraries
Act, 1984, S. 0, 1984, c. 57,
(iii) | furniture and equipment, other than computer equipment,
(e) to undertake studies in connection with any matter under the Act
and any of the matters in clauses (a) to (d), required for the
provision of services designated in this by-law within or outside the
municipality, including interest on borrowing for those expenditures
under clauses (a), (b), (c) and (d) that are growth-related;
(8) | "commercial" means any use permitted in a commercial zone other than a
Residential Use as described by the Zoning By-law of the municipality and
any amendments thereto.;
(9) "Council" means the Council of the Corporation of the Town of
Gananoque;
(10) "development" includes redevelopment;
(11) "development charge" means a charge imposed pursuant to this by-law
adjusted in accordance with Section 13;
(12) "dwelling unit" means a room or group of rooms in a dwelling used or
intended to be used as a single independent and separate housekeeping
unit containing a kitchen and sanitary facilities for its exclusive use, and
has a private entrance from outside the dwelling or from a common
hallway or stairway inside the dwelling, but does not include a room or
suite of rooms in a hotel or motel;
(13) "existing" means existing as of the date of the passing of this By-law;
(14) "grade" means the average level of finished ground adjoining a building at
all exterior walls;
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(15) "gross floor area" means the total floor area, measured between the
outside of exterior walls or between the outside of exterior walls and the
centre line of party walls dividing the building from another building, of all
floors above the average level of finished ground adjoining the building at
its exterior walls;
(16) "hospital" means land, buildings, or structures used, or designed or
intended for use as defined in the Public Hospitals Act, R.S.O. 1990, c.
P.40, as amended;
(17) "industrial" means any building used for or in connection with,
(a) | manufacturing, producing, processing, storing, or distributing
something and includes a greenhouse;
(6) research or development in connection with manufacturing,
producing, or processing something;
(c) retail sales by a manufacturer, producer or processor of something
manufactured, produced or processed, if the retail sales are at the
site where the manufacturing, production, or processing takes
place; and
(d) office for administrative purposes, if carried out with respect to
manufacturing, producing, processing, storage, or distribution and
in or attached to the building or structure used for that
manufacturing, producing, storage, or distribution;
(18) "non-profit housing development" means development of a building or
structure intended for use as residential premises by:
(a) | acorporation without share capital to which the Corporations Act
applies, that is in good standing under that Act and whose primary
objective is to provide housing;
(6) | acorporation without share capital to which the Canada Not-for-
profit Corporation Act applies, that is in good standing under that
Act and whose primary objective is to provide housing; or
(c) a non-profit housing co-operative that is in good standing under the
Co-operative Corporations Act;
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(19) "non-residential use" means land, buildings, or structures or portions
thereof used, or designed or intended for a use other than a residential
use;
(20) "other multiple" means any residential dwelling which is not a
single-detached dwelling, a semi-detached dwelling, or an apartment
dwelling;
(21) "place of worship" means that part of a building or structure used for
worship and that is exempt from taxation as a place of worship under the
Assessment Act, R.S.O. 1990, c. A.31, as amended;
(22) "rental housing" means development of a building or structure with four or
more dwelling units all of which are intended for use as rented residential
premises;
(23) "residential use" means land or buildings or structures or part thereof of
any kind whatsoever used, designed or intended to be used as a
residence for one or more individuals but does not include a hotel or
motel;
(24) "semi-detached dwelling" means the whole of a dwelling divided vertically
both above grade and below grade into two separate dwelling units;
(25) "single-detached dwelling" means a dwelling containing only a dwelling
unit, or a dwelling unit and an accessory apartment, and not attached to
another structure.
2. SCHEDULE OF DEVELOPMENT CHARGES
(1) | Subject to the provisions of this by-law, development charges against land
shall be calculated and collected in accordance with the base rates set out
in Schedule "B", which relate to the services set out in Schedule "A".
(2) | The development charge with respect to the use of any land, buildings or
structures shall be calculated as follows:
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(a) in the case of residential development, or the residential purloins of
a mixed-use development, based upon the number and type of
dwelling units;
(b) -- in the case of non-residential, or the non-residential portion of a
mixed-use development, based upon the gross floor area of such
development;
(3) | Council hereby determine that the development of land, buildings or
structures for residential or non-residential uses will require the provision,
enlargement, expansion, or improvement of the services referenced in
Schedule "B".
3. APPLICABLE LANDS
(1) | Subject to Section 6, this by-law applies to all lands in the Town of
Gananoque, whether or not the land or use is exempt from taxation under
Section 3 of the Assessment Act, 1990, c.A..31.
(2) Notwithstanding the provisions of this By-law, development charges shall
not be imposed with respect to land that is owned by and used for
purposes of:
(a) | Town of Gananoque, or any local board thereof; and
(b) | aboard of education as defined in subsection 1(1) of the Education
Act.
4. APPLICATION OF CHARGES
(1) | Development charges shall be imposed on all lands, buildings, or
structures that are developed for residential or non-residential uses if the
development requires:
(a) the passing of a zoning by-law or of an amendment to a zoning by-
law under Section 34 of the Planning Act,
(b) -- the approval of a minor variance under Section 45 of the Planning
Act;
(c) a conveyance of land to which a by-law passed under Subsection
50(7) of the Planning Act applies;
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(d) -- the approval of a plan of subdivision under Section 51 of the
Planning Act,
(e) | aconsent under Section 53 of the Planning Act,
(f) the approval of a description under Section 50 of the Condominium
Act, R.S.O. 1990, Chap. C.26, as amended, or any successor
thereof; or
(g) the issuing of a permit under the Building Code Act in relation to a
building or structure.
(2) | Subsection (1) shall not apply in respect of local services as described in
S.$.59(2) (a) and (b) of the Act;
5. MULTIPLE CHARGES
(1) | Where two or more of the actions described in Section 4(1) are required
before land to which a development charge applies can be developed,
only one development charge shall be calculated and collected in
accordance with the provisions of this by-law.
(2) | Notwithstanding Subsection (1), if two or more of the actions described in
Section 4(1) occur at different times, and if the subsequent action has the
effect of increasing the need for municipal services as designated in
Schedule "A", an additional development charge on the additional
residential units and/or non-residential gross floor area shall be calculated
and collected in accordance with the provisions of this By-law.
6. EXEMPTIONS
(1) | Notwithstanding the provisions of this By-law, development charges shall
not be imposed with respect to that category of exempt development
described in s.s. 2(3) of the Act, and s.s. 2(1) of O.Reg. 82/98, namely:
(a) the enlargement of an existing dwelling unit;
(b) -- the creation of one or two additional dwelling units in an existing
single-detached dwelling, or structure ancillary to a single-detached
dwelling, provided the total gross floor area of the additional one or
two units does not exceed the gross floor area of the existing
dwelling unit;
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(c) the creation of one additional dwelling unit in an existing semi-
detached or row dwelling, or structure ancillary to a semi-detached
or row dwelling, provided the total gross floor area of the additional
one unit does not exceed the gross floor area of the existing
dwelling unit;
(d) -- the creation of the greater of one additional dwelling unit or 1% of
the existing dwelling units in the building of an existing rental
residential building, or structure ancillary to an existing rental
residential building; or
(e) -- the creation of one additional dwelling unit in any other type of
existing residential building, or structure ancillary to any other type
of existing residential building, provided that the total gross floor
area of the additional one unit does not exceed the gross floor area
of the smallest dwelling unit already contained in the residential
building.
(2) | Notwithstanding the provisions of this By-law, development charges shall
not be imposed with respect to that category of exempt development
described in s.s. 2(3.1) of the Act, and s.s. 2(3) of O.Reg. 82/98, subject to
the following restrictions:
propeced New. Description of Class of
Residential Proposed New Residential Restrictions
Buildings Buildings
1 Proposed new Proposed new residential The proposed new detached dwelling
detached dwellings buildings that would not be must only contain two dwelling units.
attached to other buildings and
that are permitted to containa | The proposed new detached dwelling
second dwelling unit, that must be located on a parcel of land
being either of the two dwelling | ©n which no other detached dwelling,
units, if the units have the semidetached dwelling or row
==
smaller of the dwelling units.
detached dwellings or | buildings that would have one_ | dwelling or row dwelling must only
row dwellings or two vertical walls, but no contain two dwelling units.
other parts, attached to other The proposed new semi-detached
buildings and that are dwelling or row dwelling must be
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Name of Class of i.
Description of Class of
Proposed New . . og:
; ; Proposed New Residential Restrictions
Residential Buildings
Buildings g
permitted to contain a second | located on a parcel of land on which
dwelling unit, that being either | no other detached dwelling, semi-
of the two dwelling units, if the | detached dwelling or row dwelling
units have the same gross would be located.
floor area, or the smaller of the
dwelling units.
3 Proposed new Proposed new residential The proposed new detached dwelling,
residential buildings buildings that would be semi-detached dwelling or row
that would be ancillary to a proposed new dwelling, to which the proposed new
ancillary to a detached dwelling, semi- residential building would be ancillary,
proposed new detached dwelling or row must only contain one dwelling unit.
detached dwelling, dwelling and that are permitted
semi-detached to contain a single dwelling The gross floor area of the dwelling
dwelling or row unit. unit in the proposed new residential
dwelling building must be equal to or less than
the gross floor area of the detached
dwelling, semi-detached dwelling or
row dwelling to which the proposed
new residential building is ancillary.
(3) Notwithstanding the provisions of this By-law, development charges shall
not be imposed with respect to that category of exempt development
described in in s.4 of the Act, and s.1 of O.Reg. 82/98, namely:
(a) the enlargement of the gross floor area of an existing industrial
building, if the gross floor area is enlarged by 50 percent or less;
(6) for the purpose of (a), the terms "gross floor area" and "existing
industrial building" shall have the same meaning as those terms
have in O.Reg. 82/98 under the Act; and
(c) notwithstanding subsection (a), if the gross floor area is enlarged by
more than 50 per cent, development charges shall be payable and
collected and the amount payable shall be calculated in accordance
with s.4(3) of the Act.
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7. TIMING OF CALCULATION AND PAYMENT
(1) Development charges are due and payable in full to the Corporation of the
Town of Gananoque on the date a building permit is issued for any land,
buildings, or structures affected by the applicable development charge and
a building permit with respect to a building or structure shall be withheld
where the applicable development charge has not been paid pursuant to
Section 28 of the Act.
(2) Notwithstanding Subsection 7.1, development charges for rental housing
and institutional developments are due and payable in 6 installments
commencing with the first installment payable on the date of occupancy,
and each subsequent installment, including interest, payable on the
anniversary date each year thereafter.
(3) Notwithstanding Subsection 7.1, development charges for non-profit
housing developments are due and payable in 21 installments
commencing with the first installment payable on the date of occupancy,
and each subsequent installment, including interest, payable on the
anniversary date each year thereafter.
(4) | Where the development of land results from the approval of a Site Plan or
Zoning By-law Amendment received on or after January 1, 2020, and the
approval of the application occurred within 2 years of building permit
issuance, the development charges shall be calculated on the rates set
out in Schedule "B" on the date of the planning application, including
interest. Where both planning applications apply, development charges
shall be calculated on the rates, including interest, set out in Schedules
"B" on the date of the later planning application.
(5) Despite subsections 7.2 to 7.4, Council from time to time, and at any time,
may enter into agreements providing for all or any part of a development
charge to be paid before or after it would otherwise be payable, in
accordance with section 27 of the Act.
(6) Interest for the purposes of subsections 7.2 to 7.4 shall be determined as
the bank of Canada prime lending rate on the date of building permit
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issuance. Notwithstanding the foregoing, the interest rate shall not be less
than 0%.
(7) If the development charge or any part thereof imposed by the Town of
Gananoque remains unpaid after the due date, in the absence of an
agreement to address the amount unpaid amount per article 2.6.1 (a) or
Subsection (2), then the amount unpaid shall be added to the tax roll as
taxes as prescribed by in Section 32 of the Act.
8. SERVICE STANDARDS
(1) | The approved service standards for the Town of Gananoque are those
contained in the Development Charges Background Study.
9. SERVICES IN LIEU
(1) | Council may authorize an owner, through an agreement under Section 38
of the Act, to substitute the whole or such part of the development charge
applicable to the owner's development as may be specified in an
agreement by the provision at the sole expense of the owner, of services
in lieu. Such agreement shall further specify that where the owner
provides services in lieu in accordance with the agreement, Council shall
give to the owner a credit against the development charge otherwise
applicable to the development, equal to the reasonable cost to the owner
of providing the services in lieu, provided such credit shall not exceed the
total development charge payable by an owner to the municipality.
10. DEVELOPMENT CHARGE CREDITS
(1) | Where residential space is being converted to non-residential space, the
development charge equivalent that would have been payable on the
residential space shall be deducted from the charge calculated on the
non-residential space being added.
(2) | Where non-residential space is being converted to residential space, the
development charge equivalent that would have been payable on the non-
residential space shall be deducted from the charge calculated on the
residential units being added.
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(3) | An owner who has obtained a demolition permit and demolished existing
dwelling units or a non-residential building or structure in accordance with
the provisions of the Building Code Act shall not be subject to the
development charge with respect to the development being replaced,
provided that the building permit for the replacement residential units or
non-residential building or structure is issued not more than two (2) years
after the date of issuance of the demolition permit and provided that any
dwelling units or non-residential gross floor area created in excess of what
was demolished shall be subject to the development charge imposed
under this By-law.
(4) No redevelopment credit shall be made in excess of the development
charge payable for a redevelopment.
11. BY-LAW REGISTRATION
(1) | Accertified copy of this by-law may be registered on title to any land to
which this by-law applies.
12. RESERVE FUNDS
(1) | Monies received from payment of development charges shall be
maintained in a separate reserve funds, and shall be used only to meet
the growth-related net capital costs for which the development charge was
levied under this by-law.
(2) | Council directs the Treasurer to divide the reserve fund(s) created
hereunder into the separate subaccounts in accordance with the service
categories set out in Schedule "A" to which the development charge
payments shall be credited in accordance with the amounts shown, plus
interest earned thereon.
(3) | Where any development charge, or part thereof, remains unpaid after the
due date, the amount unpaid shall be added to the tax roll and shall be
collected as taxes.
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(4) | Where any unpaid development charges are collected as taxes under
Subsection (3), the monies so collected shall be credited to the
development charge reserve fund or funds referred to in Subsection (1).
(5) | The Treasurer is hereby directed to prepare an annual financial statement
for the development charges reserve fund as prescribed under Section 12
of Ontario Regulation 82/98 and to submit the statement for Council's
consideration and within 60 days thereafter, to submit such statement to
the Minister of Municipal Affairs and Housing.
13. BY-LAW AMENDMENT OR REPEAL
(1) | Where this by-law or any development charge prescribed thereunder is
amended or repealed by order of the Local Planning Appeals Tribunal or
by resolution of the Council, the Treasurer shall calculate forthwith the
amount of any overpayment to be refunded as a result of said amendment
or repeal.
(2) Refunds that are required to be paid under Subsection (1) shall be paid to
the registered owner of the land on the date on which the refund is paid.
(3) Refunds that are required to be paid under Subsection (1) shall be paid
with interest to be calculated as follows:
(a) -- interest shall be calculated from the date on which the overpayment
was collected to the day on which the refund is paid;
(b) -- interest shall be paid at the Bank of Canada rate in effect on the
date of enactment of this by-law.
14. DEVELOPMENT CHARGE SCHEDULE INDEXING
(1) | The development charges referred to in Schedule "B" shall be adjusted
annually, without amendment to this by-law, on January 1* of each year,
in accordance with s.7 of O. Reg. 82/98.
15. BY-LAW ADMINISTRATION
(1) This by-law shall be administered by the Treasurer.
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16. SCHEDULES TO THE BY-LAW
(1) The following schedules to this by-law form an integral part of this by-law:
Schedule "A" -- Designated Municipal Services Under this By-law
Schedule "B" -- Schedule of Development Charges
17. SEVERABILITY
(1) If, for any reason, any provision, section, subsection, or paragraph of this
by-law is held to be invalid, it is hereby declared to be the intention of
Council that all of the remainder of this by-law shall continue in full force
and effect until repealed, re-enacted, or amended, in whole or in part or
dealt with in any other way.
18. SHORT TITLE
(1) This by-law may be cited as the Development Charge By-law.
19. DATE BY-LAW EFFECTIVE
(1) This by-law shall come into force and effect on , 2020.
Read a first, second, and a third time and finally passed this __ day of , 2020.
Ted Lojko, Mayor
Penny Kelly, Clerk
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SCHEDULE "A" TO BY-LAW ___
THE CORPORATION OF THE TOWN OF GANANOQUE
Designated Municipal Class of Services Under this By-law
Municipal-wide Services
1. Roads & Related
2. Parks & Recreation
3. Growth-Related Studies
Urban Services
4. Wastewater
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SCHEDULE "B" TO BY-LAW
THE CORPORATION OF THE TOWN OF GANANOQUE
Schedule of Development Charges
RESIDENTIAL NON-RESIDENTIAL
. Single and Apartments -
Service -
Semi-Detached eens Oc) Bachelor and 1 Other Multiples Pol gals GENES
. Bedrooms + Floor Area)
Dwelling Bedroom
Municipal Wide Services
Roads & Related Services 789 503 342 569 0.56
Parks & Recreation Services 659 420 285 475 0.05
Growth-Related Studies 220 140 95 159 0.15
Urban Services
Wastewater Services 1,438 917 623 1,037 1.00
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