DC Background Study Dec 8, 2022 — full text, Lambton Shores, Ontario

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aN The M lity of Lamb Sh =a e Municipality of Lambton Shores Zain _-- 2022 DEVELOPMENT CHARGES BACKGROUND STUDY & BY-LAW |S dia | DFA Infrastructure International Inc. December 8, 2022 DFA Infrastructure International Inc. 33 Raymond Street St. Catharines Ontario Canada L2R 2T3 Telephone: (905) 938 -0965 Fax: (905) 937-6568 December 8, 2022 Janet Ferguson Director of Financial Services Municipality of Lambton Shores 9575 Port Franks Road, RR#1 Thedford. Ontario, NOM 2NO Dear Ms Ferguson, Re: Lambton Shores 2022 Development Charges (DC) Background Study & By-law We are pleased to submit a revised 2022 DC Background Study and revised DC By-Law. This revision was needed to incorporate the impacts resulting from the amendments to the DCA as contained in the recently approved Bill 23 (More Homes Built Faster Act, 2022). Additional revisions to the original draft background study and by-law included the removal of the discounts provided to residential and non-residential development within Arkona and Thedford areas. Also removed were the discounts provided to residential development within the core business areas of Grand Bend, Forest, Thedford and Arkona . This report and by-law form the basis for the calculations of the charges in accordance with the requirements of the Development Charges Act 1997 (DCA) and O.Reg.82/98 as amended by Bill 23. Please do not hesitate to call if you have any questions. Respectfully Submitted by, DFA Infrastructure International Inc. Derek Ali, MBA, P.Eng. President Executive Summary ES-1 Purpose This document is the Development Charges (DC) Background Study and its main purpose is to: e Document the DC policies and calculations of the new rates that inform the preparation of the new DC By-law; e Present the proposed new DC By-Law to replace the existing by-law upon approval; and e Meet the requirements of the DCA and O.Reg.82/98. ES-2 Services Included The services identified in Table ES1 were covered in this development charges background study and proposed new by-law based on the eligibility requirement of the Development Charges Act 1997 (DCA) and the existing By-law 01-2018. Table ES-1: Eligible Services Services Included in DC Calculations e §=Administration e Transportation - Growth Related Studies - Roads, Sidewalks, Streetlights, e Indoor Recreation Traffic Controls - Recreation Facilities - Bridges and Culverts e Outdoor Recreation - Vehicles and Equipment - Parkland Development - Facilities - Parkland Amenities e Wastewater (Forest and Grand Bend) - Park Trails - Treatment and Collection e Fire e Water - Vehicles and Equipment - Storage and Distribution - Facilities e Storm Sewer - Land - Growth-Related Studies ES-3 Population and Employment Growth The residential, employment and dwelling unit growth for the period 2022 to 2041 are summarized in Table ES-2. These estimates were used to calculate the service level caps, allocating costs between residential and non-residential growth and calculating the rates. The residential population growth is based on the Stats Canada residential growth projections and the Municipality's records of current residential development activity. Employment population growth is based on an employment activity rate of 0.349 jobs per capita (2016 Census) The residential population growth over the 10-year period is projected to be 2,304 to 2031 and 4,608 to 2041 and represents approximately 74% of total growth. The employment population growth to 2041 is Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 estimated to be 1,562 representing 26% of the total growth. Non-residential employment growth coverts to approximately 116,887 m? of Gross Floor Area (GFA). It is estimated that approximately 64% of total residential and employment growth will occur in the wastewater service area of Grand Bend. Table ES-2: Residential Population, Employment Population & Dwelling Unit Growth (2022-2041) sibel PICT Beyond 10 Years Total to Build Out City Wide Charges Study Period (2032-2041) (2022-2041) (2022-2031) 3,085 3,085 6,170} 100% Growth Non-Residential Gross Floor Area 5 58,434 58,434 116,867 (GFA) (m*) 1.Includes Census undercount ES-4 Recoverable Growth Related Capital Needs The capital cost eligible for recovery through the development charges after deductions and adjustments and their respective allocations to the residential and non-residential sectors are summarized by service in Table ES-3. Table ES-3: Allocation of Costs to Residential & Non-Residential Net Capital Residential Non- Service Needs to be Share ' Residential Basis for Allocation Recovered Share Municipal Wide Services Outdoor Recreation S 505,599 $ 480,319 $ 25,280 95% residential and 5% non-residential Indoor Recreation S 1,020,656 $ 969,624 $ 51,033 95% residential and 5% non-residential Fire S 488,663 S$ 363,077 $ 125,586 % of Population and Employment Growth Transportation S 6,490,519 $ 4,822,455 $ 1,668,063 %of Population and Employment Growth Storm Sewer S 100,000 $ 74,400 $ 25,600 %of Population and Employment Growth Wastewater Services Wastewater (Grand Bend) S 8,131,891 $ 6,050,127 $ 2,081,764 %of Population and Employment Growth ES-4 Calculated Development Charges The calculated residential development charges by type of dwelling unit and the non-residential development charges per square metre are presented in Table ES-4. The charges were based on occupancy rates (persons per unit - PPU) of 2.27, 1.91, 1.61 and 1.21 for single & semi-detached, multiples, apartments - 2 or more bedrooms, apartments - bachelor and 1 bedroom. 2 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 Table ES-4: Calculated Development Charges Residential Charge (By Dwelling Type) Non-Residential Charge Service Single Apartment Apartment Wind Serna) Industrial Units-One Units - Two Other : Institutional a Detached / : Turbine (per 2 (per metre : Bedroom or or More Multiples . (per metre Semi-Detached turbine) of GFA) Less Bedrooms of GFA) Municipal Wide Services Outdoor Recreation S 512.18 | $ 272.61 | S 362.73 |S 429.64] S - iS 0.46 |S 0.46 Indoor Recreation S 987.07 | S$ 525.38 | S 699.06 |S 828.00] S$ - iS 0.88 |S 0.88 Fire S 353.19 | S 187.99 | S$ 250.13 | $ 296.27 | $ 353.19] S$ 2.08 | S$ 2.08 Transportation S 4,842.50 | $ 2,577.47 | S$ 3,429.52 | S$ 4,062.12] S$ 4,842.50] 5 28.47 |S 28.47 Storm Sewer S 74.92 |S 39.88 | S 53.06 | S 39.88] S 74.92 |S 0.4415 0.44 Wastewater Services Wastewater (Grand Bend) S 4,488.22 | $ 2,388.90 | $ 3,178.62 | $ 3,764.94] S - S 26.25 |S 26.25 ES-5 Comparison with Existing 2022 Charges The current 2022 and proposed development charges are compared in Table ES-5. Table ES-5 shows increases in the proposed total municipal wide charges for all residential dwelling types and non- residential charges. Residential and non-residential charges for the Grand Bend wastewater service area will also increase over the current 2022 charges. It should be noted there are no proposed administration charges, water charges and wastewater charges in the Forest wastewater service area as the current available water DC reserves and Forest wastewater DC reserves exceed their respective projected net growth-related capital costs, therefore no development charges could be calculated for those services in this study. Table ES-5: Proposed vs. 2022 Development Charges Residential Charge (By Dwelling Type) Non-Residential Charge Service Single eT lla 03 SeraLTTANALEA)/ Industrial Detached / Units-One Units- Two Other Wind Turbine Institutional eepmmrae Semi- Bedroom or or More Multiples (perturbine) (per metre 2 een Detached Less Bedrooms of GFA) |__CURRENT(2022)CHARGES | |___PROPOSEDCHARGES | Po IFFERENCE fT 3 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 ES-6 Recommendations The following are the recommendations are presented for consideration by the Municipality. 1. That the revised Development Charges Background Study and By-Law be posted on the Municipality's website effective immediately for public review in accordance with the requirements of the Development Charges Act, 1997 Section 10 (4). 2. That following approval of the by-law, the required notices are issued to the public and stakeholders and a pamphlet is prepared, in accordance with O.Reg.82/98 Section 10 and O.Reg. 82/98 Section 14 respectively. 3. That the growth-related capital projects forecast identified in this Development Charges Background Study be approved by Council as a statement of its intention to meet the increased need for service due to growth, as required under O.Reg.82/98 Section 3. 4. That any excess capacity created as a result of undertaking the growth-related capital projects identified in this background study would be paid for by development charges and therefore deemed to be "committed" in accordance with the requirements of O.Reg.82/98 Section (5). 4 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 Table of Contents 1 INTFOCUCTION ...........cesessseccccssssceccnssceccecesceccccssssceccesssccccecsssecsccesssssccessscsccecsssscsocssssessessssee O 1.1 BaACKQOUNC .... ee ecececessssscceceeecessesesaececeesceeseseaaeseceescsesnaaaesesecssseseussseesesesssesssssseesessessessssssseesessss D 1.2 Purpose of this DOCUMENL............ccccccccccecsssessssececeesseesesnsaecececssseseasseeeeecessesssasseseescessesssssssessesses D 2 --Studly Methodology ...........cccccssssccccccssssccccssssccccecssseccccssssceccsssceccecssssssccssssssscecsscscceessssseee OD 2.1 Steps in Calculating Development Charges .........c.ccccccccssssssscecececesssssseeeeeessssssssaeseseessssssstaeeeeee D 2.2 Datta SOUICES 00... eeeeeececcceceesenneaecececeeeeseaaeaecececeeeesaaaeaececeeeeeesaaaeaeceeeeesesaaaeaeeeeeseseestaeeeeseesetstsaeees LA 3 Step1: Development Charges Act 1997 (DCA) Requirements.............ssssssssscsceeeeeeesssssseees LS 3.1 General REQUIFEMENKS............ccccccccccessssssssseeececesseseeaeeececeseesessseeeescssseseasseseesesssessstsatssesssssssees LD 3.2 Prescribed Calculation Methodology ........c.cccccccccsssssscecececessessseseccessesssssassessessssssssssssessessssssss LO 4 = Step 2: Policy FraMework...........cccccssssccccssssceccccssssccccssssceccecssssccccsssscsccesssesccecsssscsscsssscees LZ 4.1 -- Existing Development Charges By-Law No. 01-2018 ...........ccccccsesscececeessssssseeeeeessssssststseeeeesees LZ 4.2 Policy Dir@ction ...........ccccccccccecssssssnsececececesseseaecececscessessaesesecscessesssaeesssesssssesssasssesessssssssssssesessses LO 5 Step 3: Services Eligible for Development Charges............cccsssssscscsssssccccsssssecceessssesesssseee LO 6 Step 4: Population and Employment Growth. ...........cssssccccssssssccccssssceccessssscsccsssscsccsssseees LO 7 = Step 5: Historical Service Levels............cccccssssccccssssccccesssccccccssssccccscssccccecsscecscesssscsscsssscees 22 8 Step 6: Net Growth-Related Capital Costs.............ccccsssssceccssssceccccssssccccessscecceesssscsccsssseees 22 8.1 Step 6.1: Growth Related Capital N@edS .0...........ccccssscccecessessssececececsssesscaeseeeeecsssessstsaseeesesssssess 2D 8.2 Step 6.2: DECUCTIONS ........ eee ccessccececeeessesnsaeeececesseseaaaeeececeseesesasaeeececessesesasseeeeecsssesssseeeessesssssss 2D 8.3 Step 6.3: ACJUSTMENHS...........ccceccccccccecsssessnececececessesseaeeececesessesaaeeeceesssssessaeseesessesssssassessessssssss 24 8.4 Step 6.4: Service Level Cap .....c ce ccccccsssssssececececessessnseeeseesesssessaeseesessessesssassessessesssssassessessssssss 20 8.5 Council Approval of Capital INVeStMents..............cccsssccececessssesssseeececsssesssssseeeescsssessstsasesesssssssses 27 9 Step 7: Calculation of Development Charges ............:sssscccccsssssccccssssceccecssssccccsssscsccessseees 27 9.1 Step 7.1: Allocation of Costs to Residential & Non-Residential Growth ..............cc:ssscceeeseesee 27 9.2 Step 7.2: Unadjusted Development Charge Rates ............cccccssssccececsssesesseceeeeecessessstssseeeseesssssss 20 9.3 Step 7.3: Cash FlOW AnalySe@s..........cccccsssssssecececeesesesnsaecececesseseaeaeeeceesssesssasseseescessessasaseseseesssssss LO 9.4 Step 7.4: Proposed Development Charges. ..........cccssssccccccsssssssssecececsssesscssseeeescsssessstssseeesesssssens 29 10 Step 8: Comparison of Development Charges ............cccccsssseccccssssceccessssecsecsssscsecessseseeees OO 10.1 Comparison with 2022 Existing and Proposed Development Charges ........:::scccccssssssstsseeeeees SO 11 Step 9: Long-Term Capital and Operating Costs Implications................cccsssccssssccsseeeesseees SL 11.1 Long-Term Operating COSts ...............ccccccceeeseseeesesesesesesesssesesesesesesssssssssesssssssesesssssssesssssssssessseses OL 11.2 Long-term Capital Costs.........cccccccsssssccccecessessaeeecececsesssnsaeceeecssseseasseeeescessessasseeeesesssessssseseesees QL 11.3 Asset Management Plan.uu.......ccccccessssccccecssssssaeeececessesesnsaeeececsssesesasaeeeeseessesesasseesessesssssssssssesees OD 5 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 12 Step 10: Background Study & By-Law .............sssccccssssseccccssssccccenssseccccssssccccssssesccesssseseess D2 13 Step 11: Stakeholder Consultation .............cccsssscccccsssseccccssssccccecssssccccsssscsccesssescsecsssseseess DD 14 Step 12: By-Law Adoption & Implementation. ............cccccssssccccsssssecccssssceccssssseccesssseeeees OD 15 ReECOMMENAAtIONS...............scccssscccssceccssecccsseccnsecccesecccsecccssesccssecscsseecenscecsescsssesssssessssseess D4 6 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 Appendices Appendix A-1: Policy Items Considered Appendix A-2: Bill 23 (More Homes Built Faster Act, 2022) Appendix B: Growth Projections Appendix C: Historical Service Level Calculations Appendix C1: Outdoor Recreation Appendix C2: Indoor Recreation Appendix C3: Fire Appendix C4: Transportation Appendix D: Net Growth-Related Capital Costs to be Recovered from Development Charges Appendix D1: Administration --- Growth Studies Appendix D2: Outdoor Recreation Appendix D3: Indoor Recreation Appendix D4: Fire Appendix D5: Transportation Appendix D6: Storm Sewer Appendix D7: Water Appendix D8: Wastewater (Forest) Appendix D9: Wastewater (Grand Bend) Appendix E: Cash Flow Analyses & Adjusted Charges Appendix E1: Outdoor Recreation Appendix E2: Indoor Recreation Appendix E3: Fire Appendix E4: Transportation Appendix E5: Storm Sewer Appendix E6: Wastewater (Grand Bend) Appendix F: Operating Capital & Asset Management Costs Implications Appendix G: Development Charges By-Law Appendix G1: Draft DC By-law Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 Tables Table 2-1: Study Methodology .........:ccccccsssccccesssecececsenececsssneeecssseeeeceeseseeessssaeeeessstsesessstssessssseees LO Table 2-2: Background Study Data SOUPCES..........:cccscessececssssececesseecececseaeeesssseeecsssteeeessstssesssseees LA Table 5-1:Eligible SCrviC@s........c.cccccccccessssssssececeescsssssseseceeeesesssesssseeeeesesssssssssssessessssssssssstessssssess LO Table 6-1: Residential Population & Dwelling Unit Growth (2022-2041)...........ccceccsesseeeesssteeee 20 Table 6-2: Housing Mix (2022-2041)...........ccccccsseccsssecesssecesseceesaecsssaecssssecssssecsssaecsssesesssssessstecsstees 2O Table 6-3: Population Growth in New Dwelling Units ...........cecesecesssececeessneeecssseeeecessteeesessntee QL Table 6-4: Employment Growth. ........c:ccccccsssecccssssececsssseeececseaeeecseseeecesseeeecesseseesessseeecessseeesssentes QL Table 7-1: Average Historical Service Levels...........cccsssccccsssssececssseeeecessseeeceeseaeeecsssaeeeeesseeeeesssstee 22 Table 8-1: Growth-Related Capital Needs (GrOSs)...........ccccsssccccssssececessseseceesssseeeesssseeeesssssessssstes 2 Table 8-2: Net Recoverable Capital Costs after DEGUCTIONS............eeecsseeeessteeecessteeeeesstteeesssteeee 24 Table 8-3: Summary Of ACjUStMENMS .........ccceceessececsessececeseeeeececseaaeeecseueeecesseeeeseststeeesssseeeesssttees QD Table 8-4: Net Recoverable Capital Costs after Deductions & Adjustments...........::cccssseeeesstrees 29 Table 8-5: Application of Service Level Caps ...........cccccccccccccssssssssececeeeesssessssssesessessssssssssseseesessssss 2O Table 9-1: Allocation of Costs to Residential &Non-Residential............c:ccccssssecccsssseeecessseeeesssstee 27 Table 9-2: Unadjusted Residential & Non-Residential Rates..............cccccessssceseeesesssssstseseesesssess 20 Table 9-3: Adjusted Residential & Non-Residential Rates (After Cash Flow Analyses).................29 Table 9-4: Occupancy by Dwelling Type ...........ccssccccssssscececssneeecssseeecessneeeceesesaeescsssaeeeesssseeesesssee 29 Table 9-5: proposed Development Charge ..........cccccssccccssssececesseeeeecsenaeeeesssaeeeessseeeeessstseessssteees OO Table 10-1: Proposed vs. Existing 2022 Development Charges..........ccsscccessseeecessseeeessteeeesssteees OO Table 11-1: 10-Year Operating Cost IMplications ..........cececsscecesseececeeseeeececsecaeeecesseeeessstteeeessentes OL Table 11-2: 10-Year Capital Cost Implications ............cccccccesssececessteeecesseeeeceeseaeeecssseeeeesseeeesessttes OD Table 11-3: 10-Year Asset Management Cost IMplications...........:cccesseecessesteeecsssteeeeessseeeeessntes OD Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 1 Introduction 1.1 Background The Municipality of Lambton Shores (Municipality) is a lower tier municipality within Lambton County with a population of approximately 12,400 residents. It provides a wide range of services to its residents and businesses for which development charges are currently collected. These services include: =" Administration - Growth Studies =" Transportation =" Outdoor Recreation =» Water = Indoor Recreation = Wastewater The extent to which these services are delivered, and the costs depend not only on the existing residents and businesses but also on the anticipated growth. The recovery of the capital costs of development driven service expansions is governed by the Development Charges Act (1997) (DCA) and Ontario Regulation 82/98 (O.Reg. 82/98). The calculation and implementation of development charges (DCs) including the requirement for municipalities to prepare DC Background Studies and pass by-laws setting out the DCs to be collected from developers are prescribed by the DCA and O.Reg. 82/98. It should be noted that the amendments to the DCA resulting from the recent passing of Bill 23 (The More Homes Built Faster Act) have been considered in preparation of this study. The Municipality's current DC By-Law No.01-2018 will expire on December 31, 2022. The expiry date however is in the process of being amended to January 15" 2023, which is the 5"" anniversary of DC by- law 01-2018 coming into force. A new DC By-law needs to be passed and become effective before the end of January 15' 2023. It is expected that the new DC By-law will be passed at the January 10% Council meeting. 1.2 Purpose of this Document This document is the DC Background Study and its main purpose is to: e Document the Development Charge policies and calculations of the new rates that inform the preparation of the new DC By-law; e Present the new DC By-Law; and e Meet the requirements of the DCA and O.Reg.82/98. 2 Study Methodology 2.1 Steps in Calculating Development Charges The methodology for this study very closely follows the methodology prescribed by the DCA particularly Section 5(1) and O.Reg. 82/98. The steps are outlined in Table 2-1. 9 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 Table 2-1: Study Methodology DC Background Study Steps Step 1: Review Development Charges Act, 1997 (DCA) Requirements, including the recent amendments to the DCA resulting from the More Homes Build Faster Act, 2022 (See Section 3) e The DCA, O.Reg.82/98 and the More Homes Built Faster Act were reviewed to confirm requirements and their application to the Municipality's situation Step 2: Develop Policy Framework (See Section 4) e = The existing By-law No. 01-2018 was reviewed to e Input was received from senior staff on identify existing policies, rules and charges set by the relevant polices and services to be included in Municipality the DC calculations. New services to be included in this study are Fire and Storm Sewer. Step 3: Identify Services Eligible for DCs (See Section 5) The services identified for preliminary consideration for inclusion in the study are listed below. These meet the eligibility requirements of O.Reg.82/98 Section 2.1: e §=Administration e = =Transportation - | Growth Related Studies - Roads, Sidewalks, Streetlights, e Indoor Recreation Traffic Controls - Recreation Facilities - Bridges and Culverts e Outdoor Recreation - Vehicles and Equipment - Parkland Development - Facilities - Parkland Amenities e Wastewater - Park Trails - | Treatment and Collection e Fire e Water - Vehicles and Equipment - Storage and Distribution - Facilities e Storm Sewer - Land Step 4: Determine Population & Employment Growth (See Section 6) e The growth-related data and information provided by e Employment population growth was the Municipality were used as the basis for projections determined for the 10-year period 2022 -- e = Residential population growth was projected for the 10- 2031 inclusive and the build out period 2032 -- year period 2022 -- 2031 inclusive and the build out 2041 inclusive period 2032 -- 2041 inclusive (most recent build out e Employment population growth was period approved by Council). The projections considered converted to non-residential gross floor area the population in new units as to identify the "net" (GFA) growth e = The location of new growth was assumed to e Household growth was determined for the 10-year occur within the Forest, Grand Bend, Arkona period 2022 -- 2031 inclusive and the build out period and Thedford service areas 2032 -- 2041 inclusive e The number of persons per household (PPU) was 10 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 DC Background Study Steps determined for each type of household using the 2021 Statistics Canada Census data and the 2018 DC Study Step 5: Determine Historical Service Levels (See Section 7) e The services for which historical service levels are e =The quantity (floor area, number of required were identified. Historical service level equipment, etc.) and quality (cost per square calculations for water, wastewater and storm sewer metre, per unit, etc.) of services for each year were not required over the historical 15 years were determined e = The historical population served by each service was e The average service level (cost per population) determined for the historical 15-year period 2007 -- 2021 inclusive was determined Step 6: Determine the Net Capital Costs to be Recovered from Development Charges (See Section 8) Step 6.1: Identify Growth Related Capital Needs (Gross) e The forecast period used for projecting capital costs was e Input from staff was obtained on growth 10 years (2022-2031) except for water and wastewater. related capital projects These costs were projected over a longer term (2022 to e The growth-related capital forecasts were 2041) in accordance with the DCA Section 5(1)4 developed for each service for the either e In cases where debt was incurred to pay for the projects period 2022-2031 or 2022-2041 showing the the amount of principal and interest to be repaid within gross capital cost of each project the study period for the respective service was included Step 6.2: Undertake Statutory & Other Deductions e Any approved grants or third-party funding that are e The portion of each project that will benefit expected to be received to reduce the cost of each the existing population was determined and project were deducted from the gross cost deducted from the net cost after grants and third-party funding were deducted Step 6.3: Further Adjustments after Deductions e The DCA Section 5(1) does not define uncommitted e The deduction of uncommitted excess excess Capacity but requires that it be deducted from capacity was deemed to have been done the increased need for services to accommodate the during the planning stages for services when new growth capacity was assessed to determine the need e Any credits related to existing (if any) front-end for capacity expansions hence the new agreements were identified and added to the capital projects projections in accordance with O.Reg. 82/98 Section 5 e = Any eligible debt or reserve deficits were identified and added to the to the capital forecasts e The remaining amounts were adjusted by any uncommitted reserve balances because these funds are available for use to offset the growth-related capital costs. The uncommitted reserve balances for Water and Wastewater (Forest) exceeded the net 11 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 growth-related capital costs for those services, therefore no DC charge was required to be calculated. Step 6.4: Apply Service Level Caps e = The historical average service level (Cost per Population) ¢ The lower of the service level cap or the net was multiplied by the projected population growth for capital cost for the forecast period was used the forecast period to obtain the maximum amount as the amount to be recovered through DCs (cap) that could be recovered through the DCs Step 7: Calculate the Residential and Non-Residential Development Charges (See Section 9) Step 7.1: Allocate the Net Capital Cost of each Service to Residential and Non-Residential e = The basis for allocating costs to the residential and non- = ¢ Outdoor Recreation and Indoor Recreation residential sectors was identified Residential growth were deemed 95% benefit of the residential allocation was based on residential population as a sector, and 5% non-residential sector percentage of the total residential plus employment population growth over the applicable period. The allocation to non-residential growth was the remainder Step 7.2: Calculate the Residential and Non-Residential Unadjusted Rates e ~The cost allocated to the non-residential e The cost allocated to the residential sector for each sector for each service was divided by the service was divided by the residential population growth employment population growth over the over the applicable period to arrive at a cost per applicable period to arrive at a cost per residential population (cost per capita). The result was employment population the unadjusted residential development charge per capita The cost per employment population was converted to cost per square metre of Gross Floor Area (GFA) based on conversions of 65sm, 51sm, 116sm and Osm per employee for institution employment, commercial employment, industrial employment and rural respectively. The result was the unadjusted non-residential rate per square metre Step 7.3: Undertake Cash Flow Analyses e Acash flow analysis was completed for each service e = The residential and non-residential using the projected opening reserve balance, anticipated development charges (cost per population for expenditures, anticipated revenues based on the residential and cost per square metre for non- calculated development charges, interest earned on residential) for each service were adjusted to positive annual balances and interest accrued on obtain a net zero balance for each reserve at negative annual balances over the 10-year period or 20- the end of the 10" or 20" year. These became year period. Expenditures, revenues and rates were 12 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 DC Background Study Steps inflated over the period the "adjusted" development charge rates Step 7.4: Calculate Proposed Development Charges e The adjusted rate per population was converted to a e The adjusted rate per square metre was charge per unit for single-detached /semi-detached deemed the proposed non-residential dwelling units, multiple dwelling units, apartments (1- development charges rate for the by-law. bedroom) and apartments (2 or more bedrooms) using the appropriate persons per unit (PPU). Step 8: Proposed Development Charges Comparison (See Section 10) e The proposed development charges were compared with the existing charges Step 9: Assess Long-term Capital & Operating and Asset Management Cost Impacts (See Section 11) e The long-term increase to operating costs of each e = The life expectancy for each asset to be service resulting from growth related infrastructure was funded by the development charges was estimated. An operating cost per capita was calculated calculated based on each asset's estimated for each service from the Municipality's most recent useful life. Financial Information Return. These rates were applied e §=6The future replacement cost of each asset was to projected residential growth in estimating operating determined. costs. e = The long-term annuities were calculated for e The long-term increases to capital costs of each service funding of the replacement of the growth- as a result of implementing the growth-related related assets. infrastructure were estimated. This was based on the portion of capital costs funded from rate payers. Step 10: Prepare Draft Background Study & Draft By-Law(s) (See Section 12) e The Background Study (this document) was prepared in e The By-Law was prepared in accordance with accordance with the requirements of the DCA Section the DCA Section (6) and based on the rules (10) and O.Reg.82/98 Section (8) included in the existing by-law Step 11: Undertake Stakeholder Consultation (See Section 13) e =©The Draft Background Study and By-law will be made e =The Draft Background Study and Draft By-law available for public/ stakeholder review at least 60 days will be made available to the public/ prior to approval of the by-law. stakeholders at least 2 weeks prior to the e Public notice for a meeting will be held to obtain public/ public meeting expected to be held on stakeholder comments on the Draft Background Study December 20, 2022. and Draft By-law will be issued at least 20 days in advance of the meeting 13 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 DC Background Study Steps Step 12: Approval & Implementation of Final Background Study and Final By-Law (See Section 14) e Comments received from the public and stakeholders e = The Final Background Study and Final By- will be considered, and necessary changes will be made law(s) will be prepared to the Draft Background Study and Draft By-law. e Notice of approval of DC By-law will be given e ~=Approval by Council will be sought in time for the new within 20 days of final approval by Council. by-law to become effective before the current by-law e A pamphlet will be prepared (within 60 days expires. It is expected that the new DC by-law will be of approval of the by-law) containing the passed January 10, 2023 items noted in O.Reg.82/98 Section 14(1) and make available to the public. 2.2 Data Sources The primary sources of data used to prepare this Background Study are listed in Table 2-2. In addition, information was also developed from discussions with and input from the Municipality's staff, as required. Table 2-2: Background Study Data Sources Item Data Source Services to be Included ° By-Law No. 01-2018 e = Input from staff L h 2018 Devel h , Historical Residential Population ° ambton Shores 20 8 eve opment C arge Study and Future Growth e Growth Information provided by the Municipality e Statistics Canada 2021 Census Historical Employment Population e Lambton Shores 2018 Development Charge Study, and Future Growth e = Growth Information provided by the Municipality e Growth Information provided by the Municipality Household Projections e Statistics Canada 2021 Census for PPU e = Input from staff Historical Service Level Information e Information supplied by the Municipality e Lambton Shores Capital Budget and Forecast Growth Related Capital Costs e Lambton Shores 2018 Development Charges Study, e = Staff Input Operating Costs e Lambton Shores 2021 FIR Policies & Rules Se e Input from staff 14 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 3 Step1: Development Charges Act 1997 (DCA) Requirements 3.1 General Requirements In Ontario the governing legislation for development charges is the Development Charges Act (1997), O.Reg. 82/98 and O.Reg.192/07. The latter regulation applies only to the Toronto-York Subway Station and is not relevant to this background study. As previously noted in this report, the DCA was recently amended with the passing of the More Homes Built Fast Act 2022. These amendments have been considered in the preparation of this study. The DCA Section 2 (1) allows municipalities to establish by-laws to impose development charges "against land to pay for increased capital costs required because of increased needs for services arising from development of the area to which the by-law applies". In accordance with the DCA Section 2(2), "A development charge may be imposed only for development that 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; (d) the approval of a plan of subdivision under section 51 of the Planning Act; (e) a consent 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. " The DCA and O.Reg. 82/98 are very prescriptive in the services and costs that can be included in the DC calculations and how the calculations are to be undertaken. They also prescribe the stakeholder consultation and other requirements for implementation of development charges. In general, the DCA and O.Reg.82/98 identify the following: e The information must be presented in the background study e The services for which DCs may be recovered e The need to calculate the 15-year historical service levels to determine the maximum cost (cap) that may be included in the DC calculations. This does not apply to engineered services such as water, wastewater and storm sewer. 15 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 e The requirement to determine "excess capacity" within the current services and whether or not such excess capacity is committed or available to facilitate new growth. e The period for forecasting costs. This is typically 10 years for most services but longer for others such as water and wastewater. e The eligible and ineligible capital costs for inclusion in the DC calculations e Required reductions to gross capital costs of DC related projects e Creation and maintenance of dedicated reserve funds for each service e Stakeholder consultation and notices and their timing e The contents and effective period of the by-law (10 years) e Protocol for appealing the proposed development charges e Rules for collection of development charges including mandatory exemptions Further details on the requirements of the DCA and O.Reg.82/98 are available by referencing these documents at www.ontario.ca/laws/statute/97d27 . 3.2 Prescribed Calculation Methodology The methodology for calculating development charges is defined by the specific requirements of the DCA and O.Reg. 82/98 and is very consistent across Ontario. The DCA Section 5(1) states that: "The following is the method that must be used, in developing a development charge by-law, to determine the development charges that may be imposed: 1. The anticipated amount, type and location of development, for which development charges can be imposed, must be estimated. 2. The increase in the need for service attributable to the anticipated development must be estimated for each service to which the development charge by-law would relate. 3. The estimate under paragraph 2 may include an increase in need only if the council of the Municipality has indicated that it intends to ensure that such an increase in need will be met. The determination as to whether a council has indicated such an intention may be governed by the regulations. 4, The estimate under paragraph 2 must not include an increase that would result in the level of service exceeding the average level of that service provided in the Municipality over the 15-year period immediately preceding the preparation of the background study required under section 10. How the 16 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 level of service and average level of service is determined may be governed by the regulations. The estimate also must not include an increase in the need for service that relates to a time after the 15- year period immediately following the preparation of the background study unless the service is set out in subsection (5). 5. The increase in the need for service attributable to the anticipated development must be reduced by the part of that increase that can be met using the Municipality's excess capacity, other than excess capacity that the council of the Municipality has indicated an intention would be paid for by new development. How excess capacity is determined and how to determine whether a council has indicated an intention that excess capacity would be paid for by new development may be governed by the regulations. 6. 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 extent to which an increase in service would benefit existing development may be governed by the regulations. 7. The capital costs necessary to provide the increased services must be estimated. The capital costs must be reduced by the reductions set out in subsection (2). What is included as a capital cost is set out in subsection (3). How the capital costs are estimated may be governed by the regulations. 8. Rules must be developed to determine if a development charge is payable in any case and to determine the amount of the charge, subject to the limitations set out in subsection (6). 9. The rules may provide for full or partial exemptions for types of development and for the phasing in of development charges. The rules may also provide for the indexing of development charges based on the prescribed index". 4 Step 2: Policy Framework 4.1 Existing Development Charges By-Law No. 01-2018 The existing DC By-Law No. 01-2018 approved by the Municipality's Council came into force on January 16, 2018 and is effective until expiry on December 31, 2022. It is expected however that the current by- law will be amended to remove the termination clause to allow the by-law to expire of the 5' anniversary of its passing which is January 16" 2023. Some of the main features of the existing by-law include: Identifying the following services for which the DCs are currently collected: =" Administration -- Growth Related Studies =" Transportation = Indoor Recreation = Water =" Outdoor Recreation = Wastewater 17 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 e Establishing rules for exemptions, industrial expansions, redevelopment of existing properties. e Establishing rules for reductions regarding residential development occurring within the Municipality's core business areas of Grand Bend, Thedford and Arkona. e Establishing rules for reductions regarding residential and non-residential development occurring within the boundaries Thedford and Arkona. e Setting residential DCs for the following types of dwelling units: - Single Detached/ Semi-Detached ; - Multiples Dwellings; - Apartment Units - 2 or more Bedrooms; and - Apartment Units - Bachelor and 1 Bedroom. e Collecting non-residential DCs on the basis of GFA based on a unit cost per square metre which is consistent with industry practise. A copy of the existing DC By-law 01-2018 is available on the Municipality's website: https://www.lambtonshores.ca/en/invest-and-build/resources/Documents/BYLAW-01- 2018-Development-Charges.pdf 4.2 Policy Direction The policies used in preparing the background study and by-law were guided by the existing DC By-law 01-2018 as described in Section 4.1. Appendix A-1 discusses the policy changes in the by-law. Also detailed in Appendix A-1 are the changes required to ensure the preparation of the background study and by-law are compliant with the amendments of the DCA resulting from the recent passing of the More Homes Built Faster Act, 2022. A memo was provided by DFA to the Municipality that lists all the impacts that Bill 23 have on the DCA. This memo is provided in Appendix A-2. 5 Step 3: Services Eligible for Development Charges The services identified for inclusion in the study are listed in Table 5-1. These met the eligibility criteria noted in O.Reg.82/98 Section 2.1. Table 5-1:Eligible Services Services Included in DC Calculations e §=Administration e Transportation - Growth Related Studies - Roads, Sidewalks, Streetlights, e Indoor Recreation Traffic Controls 18 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 Services Included in DC Calculations - Recreation Facilities - Bridges and Culverts e Outdoor Recreation - Vehicles and Equipment - Parkland Development - Facilities - Parkland Amenities e Water - -- Park Trails - Storage and Distribution e = Fire e Wastewater - Vehicles and Equipment - Treatment and Collection - Facilities e Storm Sewer - Land - Growth-Related Studies 6 Step 4: Population and Employment Growth The DCA Section 5(1) requires that "the anticipated amount, type and location of development, for which development charges can be imposed, must be estimated". Therefore, estimated future growth in new households over the study period and the location of such growth is required for the calculations. The net historical growth over the last 10 years is also required to determine the historical service levels. The projected net residential and employment population growth are used to determine the service level caps. Population growth in new households and employment growth are used to allocate costs between residential and non-residential growth and calculate the development charges on a per capita and per square metre basis for residential and non-residential respectively. The following are the projected increases for the period 2022 to 2041. e Residential Population Growth: 4608 e Employment Population: 1,562 e Growth in Dwelling Units: 2,060 Appendix B provides the residential and employment projections for: e The 10-year historical period 2012 to 2021; e The 10-year study period 2022 to 2031; and e The build out period 2032 to 2041 The annual growth is assumed to be linear between the milestone years. The growth in population, employment and dwelling units are based on growth information provided by the Municipality and Statistics Canada 2021 census data. It is estimated that approximately 64% of total residential and employment growth will occur in the wastewater service area of Grand Bend which rates are calculated separately. Table 6-1 summarizes the growth in residential population and dwelling units over the next 10 years (2022 - 2031) and to build out (2022 - 2041). The municipal wide growth in population for the 10-year period is 2,304 and 4,608 to 2041. 19 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 Table 6-1: Residential Population & Dwelling Unit Growth (2022-2041) Total to Build Out De Oal 10-Year Study Period Beyond 10 Years Total to Build Out --e paresis (2022-2031) (2032-2041) (2022-2041) Dwelling Units" 1,030 1,030 2,060 1. Population based on an occupancy rate in new units of 2.18 PPU (Statistics Canada 2021 Census) and adjusted for census undercount 2. Projected units are based on historical increase of 515 units from 2016 to 2021 (103 per year) according to census data, assumed to continue over study period The number of new dwelling units is projected to be 1,020 over 10 years and 2,060 to 2041. According to the housing mix identified by the Municipality based on recent development applications, single- detached/semi-detached, multiples, and apartments each account for approximately 87%, 7% and 6% of the projected growth in new units by 2041 respectively as shown in Table 6-2. Table 6-2: Housing Mix (2022-2041) 10-Year Development . Dwellinecr Charzes Study Period Beyond 10 Years Total to Build Out 3 A wemne Type S y (2032-2041) (2022-2041) % of Total (2022 - 2031) 1. Housing Mix Percentages based on 2017 to 2021 housing starts by dwelling type (CMHC) - assumed to continue over study period The residential growth to be accommodated in these new units is projected to be 2,258 by 2031 and 4,515 to build out as shown in Table 6-3. It is noted that the population to be accommodated in new units are different from the total population growth due to changes in mortality and birth rates, migration from the Municipality and the fact that some of the population growth can be accommodated in existing units. 20 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 Table 6-3: Population Growth in New Dwelling Units 10-Year Development . Charges Study Period Beyond 10 Years Total to Build Out 8 y (2032-2041) (2022-2041) Persons Per (2022 - 2031) Dwelling Type . 4 Unit (PPU) : . . No.of Population No.of Population No.of Population Units Growth Units Growth Units Growth Single/Semi-Detached 2,025 2,025 1,782 4,050 Increase In Population in Existing +402 47 47 93 Units 1. PPU from 2021 Census Table 98-10-0041-01 Structural Type of Dwelling (10) and Household Size (8) for Occupied Private Dwellings of Canada, Provinces and Territories, Census Divisions and Census Subdivision 2. Implies some of the new population will be housed in existing units The employment growth over the same periods are shown in Table 6-4. The projected employment growth is 781 for the first 10 years and 1,562 to build out. These equate to an additional 58,434 m? of Gross Floor Area (GFA) in the first 10 years and 116,867 million m* to build out. The floor area was calculated using the employment densities used in the Municipality's 2018 DC Background Study. Table 6-4: Employment Growth 10-Year Development . % of Total to . Beyond 10 Years Total to Build Out . Employment Sector Charges Study Period Build Out (2032-2041) (2022-2041) 3 (2022-2031) (2022-2041) Increase Commercial - Population Related 17,843 17,843 35,686 Total GFA Increase (m7) 58,434 58,434 116,867 1. GFA Per Employee of 65m 2 for Institutional; 51m 2 for Commercial; and 116m 2 for industrial (from 2018 DC Study) 2. Employment Population growth based on an employment activity rate of 0.349 jobs per capita (2016 Census) 21 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 7 Step 5: Historical Service Levels The DCA Section 5(1)4 limits the level of service to be provided to new customers to the same as the average level of service over the 15-year period immediately preceding the year of the new DC Background Study. This requirement ensures that improvements to existing service levels are not funded by the new development charges. Accordingly, the capital cost to be recovered through the development charges must not exceed an amount (referred to as the service level "cap") using the 10- year historical service level as the basis. This requirement applies to all eligible service except for administration, water, wastewater and storm sewer. The amount of the cap is calculated by first determining the average historical cost per population. The inventory of historical services (e.g. facilities gross floor areas, number of units of equipment, etc.), current replacement costs and the historical populations are used to calculate the average historical service level. These satisfy the requirements of O.Reg. Section 4(1) which state that the quantity (number of units of equipment, etc.) and quality (e.g. cost per unit) of the services must be taken into account. The cap is calculated by multiplying the average service level (cost per population) by the projected population over the next 10 years. The inventory and replacement costs were provided by the Municipality. The detailed tables showing the historical service level calculations for each service are included in Appendices C1 to C4. Table 7-1 summarizes the historical average service level for each eligible service. The service level cap for each service was used to adjust the capital costs in calculating the net to be recovered through the development charges. This is further described in Section 8.4. Service level caps do not apply to growth studies, water, wastewater and storm sewer. Table 7-1: Average Historical Service Levels Service Average Service Service Level Cap Population Used Level Per Capita Municipal Wide Services Administration N/A N/A N/A Indoor Recreation S 8,024.10 | S$ 18,115,627 Residential Outdoor Recreation S 2,348.30 | S 5,301,634 Residential Fire S 1,171.09 | $ 3,558,355 Residential and Employment Transportation S 20,554.04 | S$ 62,453,619 Residential and Employment Stormwater N/A N/A N/A Water N/A N/A N/A Wastewater N/A N/A N/A 8 Step 6: Net Growth-Related Capital Costs This Section presents the capital investments required to facilitate the projected residential and employment growth. All required deductions and allowable adjustments were made in accordance with the DCA and O.Reg.82/98 to arrive at the net capital investment required for each service. The service level caps and post period provisions if any were applied to these amounts to identify the net costs to be recovered from the development charges. The detailed calculations are presented by service in Appendices D1 to D9. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 8.1 Step 6.1: Growth Related Capital Needs Table 8-1 summarizes the gross capital needs for each service before required deductions and allowable adjustments were made. The respective periods over which these costs would be incurred for each service are also shown. The amounts shown are the costs of the projects that are required to facilitate growth as identified by staff. All or a portion of the funding for each of these projects would be from development charges. Approximately $36.9 million in capital investment (not including water and wastewater) is required to support municipal wide future growth over the periods indicated. Additional investments of approximately $0.7 million in the water system and $0.1 million in the Forest wastewater service area and $13.9 million in Grand Bend wastewater service area would also be required in areas where these services would be offered. The total capital funding requirement is approximately $51.6 million. Table 8-1: Growth-Related Capital Needs (Gross) Service Gross Cost Period Municipal Wide Services Administration S 40,000 2022 - 2031 Indoor Recreation S 12,591,652 2022 - 2031 Outdoor Recreation S 4,490,000 2022 - 2031 Fire § 2,283,750 2022 - 2031 Transportation S 17,251,250 2022 - 2031 Stormwater S 200,000 2022 - 2031 Water and Wastwater Services Water $ 703,487 2022 - 2041 Wastewater (Forest) S 90,000 2022 - 2041 Wastewater (Grand Bend) S 13,901,759 2022 - 2041 8.2 Step 6.2: Deductions Table 8-2 summarizes the net capital needs for each service after making the required deductions. These deductions reduce the amounts recoverable from development charges and are in accordance with the requirements of the DCA and O.Reg.82/98. The net recoverable amount after deductions is $11.0 million municipal wide services (not including water and wastewater) and $0.6 million for water and $45 thousand for Forest wastewater service area and $8.6 million for Grand Bend wastewater service area. The total recoverable amount is approximately $20.2 million. Appendices D1 to D9 shows the detailed deductions for each service. 23 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 Table 8-2: Net Recoverable Capital Costs after Deductions Total Benefit To Development Service Gross Cost (Sema Existing Recoverable Subsidies Development Costs Net of Stat. Deduction Municipal Wide Services Adminstration Growth-Related Studies iS 40,000 S$ - iS 20,000 | $ 20,000 Outdoor Recreation iS 4,490,000 S$ - iS 3,121,000 | $ 1,369,000 Indoor Recreation § 12,591,652 $ 5,000,000 § 6,407,354 | $ 1,184,298 Fire iS 2,283,750 $ - § 1,806,000 | $ 477,750 Transportation iS 17,251,250 S$ - iS 9,420,750 | S$ 7,830,500 Storm Sewer S 200,000 $ - § 100,000 | $ 100,000 Water and Wastewater Services Water iS 703,487 $ - § 125,000 | $ 578,487 Wastewater (Forest) iS 90,000 S$ - iS 45,000 | $ 45,000 Wastewater (Grand Bend) iS 13,901,759 $ 3,500,000 $ 1,830,000 | S$ 8,571,759 8.3 Step 6.3: Adjustments Adjustments to the projected recoverable net capital costs considered: e Positive and negative reserve balances. Positive balances were deducted, and negative balances added to the recoverable amounts. e Adding any credits owed to developers based on existing front-end agreements. Table 8-3 summarizes the adjustments made. The adjustments made were to reduce the respective capital projections for each service by the amounts of existing positive reserve balances and increase for negative reserve balances. The respective positive reserve fund balances are deemed available cash that were applied to the growth-related costs to reduce the amount required from the new development charges. Negative reserve fund balances are deemed debts that are required to be recovered from new development. The total adjustments made were approximately $3.4 million. It should be noted that both the uncommitted water reserve balance and the uncommitted wastewater reserve balance for the Forest wastewater service area exceed their respective recoverable net capital costs. As such no growth- related capital costs are available to be recovered from future growth, and therefore no development charges can be calculated for those services in this study. 24 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 Table 8-3: Summary of Adjustments Service Reserve SECS Credits Total Balance Deficits Adjustments Municipal Wide Services Adminstration Growth-Related Studies | $ 20,000 $ - S - S 20,000 Outdoor Recreation S 863,401 S$ - S - S 863,401 Indoor Recreation S 163,641 $ - S - S 163,641 Fire S (10,913) $ - § - Is (10,913) Transportation S 1,339,981 S$ - S - S 1,339,981 Storm Sewer $ -__$ -__$ -_|$ - Water and Wastewater Services $ - Water S 578,487 $ - S - S 578,487 Wastewater (Forest) S 45,000 S$ - S - S 45,000 Wastewater (Grand Bend) S 439,868 S$ - S - S 439,868 Table 8-4 summarizes the recoverable net capital for each service after making the required deductions and adjustments but before the service level caps were applied and post period capacity calculated. Table 8-4: Net Recoverable Capital Costs after Deductions & Adjustments Total Development . Service Recoverable Reserve Saker he Costs Netorstat. Adjustments Needs Deduction Municipal Wide Services Adminstration Growth-Related Studies | $ 20,000 $ 20,000 $ - Outdoor Recreation S 1,369,000 S$ 863,401 S$ 505,599 Indoor Recreation S 1,184,298 S$ 163,641 $ 1,020,656 Fire S 477,750 $ (10,913) $ 488,663 Transportation S 7,830,500 $ 1,339,981 $ 6,490,519 Storm Sewer S 100,000 $ - S 100,000 Water and Wastewater Services $ - Water S 578,487 S$ 578,487 S$ - Wastewater (Forest) S 45,000 S$ 45,000 S$ - Wastewater (Grand Bend) S 8,571,759 S$ 439,868 S$ 8,131,891 25 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 The net recoverable amounts after deductions and adjustments is approximately $8.6 million for municipal-wide services (not including water and wastewater) and $8.1 million for the Grand Bend wastewater service area. There are no net recoverable amounts after deductions and adjustments for administration, water and the Forest wastewater service area. 8.4 Step 6.4: Service Level Cap The service level cap is calculated based on the historical service levels. It limits the amount of funding recoverable from the development charges for some services regardless of the net amounts after deductions and adjustments. The lower of the recoverable amounts net of deductions and adjustments or the service level cap were used to determine the development charges. Amounts that exceed the service level cap were deemed to be post period capacity which can be carried forward to the next study for consideration at that time. Table 8-5: Application of Service Level Caps . Net Capital . capacity tobe Total DC Eligible Service Needs Service Level Cap Carried Costs for Forward Recovery Municipal Wide Services Adminstration Growth-Related Studies |S - N/A S - iS - Outdoor Recreation iS 505,599 S 5,301,634 $ - iS 505,599 Indoor Recreation S 1,020,656 S 18,115,627 S$ - S 1,020,656 Fire $ 488,663 $ 3,558,355 § - 1s 488,663 Transportation S 6,490,519 S$ 62,453,619 S$ - S 6,490,519 Storm Sewer iS 100,000 N/A S - iS 100,000 Water and Wastewater Services Wastewater (Grand Bend) iS - N/A S - iS - Wastewater (Grand Bend) S 8,131,891 N/A S - S 8,131,891 Table 8-5 summarizes the service level caps, recoverable amounts through the development charges and any post period capacity to be carried forward to the next study. No recoverable funding was restricted by the calculated service level cap. The Total DC Eligible Cost for Recovery were the final amounts used to calculate the development charges as described in Section 9. The net recoverable amount after deductions and adjustments, application of the service level caps and provision of post period capacity is approximately $8.6 million (not including water and wastewater) and approximately $8.1 million for wastewater. The detailed calculations for each service are presented in Appendices D1 to D9. 26 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 8.5 Council Approval of Capital Investments O.Reg.82/98 Section 3 requires that municipal councils demonstrate their intention to meet the increase in need for capital expenditures related to growth. Otherwise, such capital costs cannot be included in the calculations. Therefore, it is recommended that Council approve the capital forecasts noted in Section 8.1 and provided in Appendices D1 to D9 to confirm its intention to meet the growth requirements. 9 Step 7: Calculation of Development Charges This section presents the calculation of the residential and non-residential development charges based on the net recoverable growth-related capital costs determined in the previous sections of this report. The calculation details are shown in Appendices E1 to E6. 9.1 Step 7.1: Allocation of Costs to Residential & Non-Residential Growth Many of the services provided by the Municipality benefit both the residential and non-residential sectors. The costs to be recovered for these services were allocated to the residential and non- residential sectors on the basis of each sector's proportionate share of total net residential and employment population growth. Some services such as Indoor Recreation and Outdoor Recreation services are mostly geared to the residential sector with 95% of eligible costs being allocated to residential growth and 5% to non-residential growth. Table 9-1 shows the allocations for each service. The residential share of costs to be recovered (not including water and wastewater) is approximately $6.7 million and the non-residential share of approximately $1.9 million. The residential and non-residential shares of the wastewater costs are approximately $6.1 million and $2.1 million respectively. Table 9-1: Allocation of Costs to Residential &Non-Residential . Net Capital Residential Non- . . . Service Needs to be Residential Basis for Allocation Share Recovered Share Municipal Wide Services Outdoor Recreation S 505,599 $ 480,319 S$ 25,280 95% residential and 5% non-residential Indoor Recreation S 1,020,656 $ 969,624 $ 51,033 95% residential and 5% non-residential Fire S 488,663 S 363,077 $ 125,586 %of Population and Employment Growth Transportation S 6,490,519 S$ 4,822,455 S$ 1,668,063 %of Population and Employment Growth Storm Sewer S 100,000 S$ 74,400 $ 25,600 %of Population and Employment Growth Wastewater Services Wastewater (Grand Bend) S 8,131,891 $ 6,050,127 S$ 2,081,764 %of Population and Employment Growth 27 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 9.2 Step 7.2: Unadjusted Development Charge Rates Development charge rates were calculated on a per capita (population) basis for the residential sector by dividing the costs allocated to residential by the residential population growth over the 10-year period 2022 to 2031. For wastewater this period was 20 years (2022-2041) Similarly, the non-residential rates were calculated by dividing the non-residential cost allocations by the growth in gross floor area over the 10-year or 20-year period to arrive at a cost per metre. These resulted in the preliminary unadjusted residential and non-residential rates prior to undertaking the cash flow analyses. These rates were subsequently adjusted as described in Section 9.3. Table 9-2 shows the unadjusted residential and non-residential rates by service. Assumptions used in the calculation of gross floor area related to industrial, commercial and institutional employment are consistent with the assumptions used in the Municipality's 2018 development charge study. Table 9-2: Unadjusted Residential & Non-Residential Rates Residential Non-Residential Service Growth in Rate Growth in Floor Area Rate Cost . . Cost Population (Cost/Capita) (Square Metre) (Cost/m?) Municipal Wide Services Outdoor Recreation S 480,319 2,258 § 212.75 | $ 25,280 58,434 § 0.43 Indoor Recreation S 969,624 2,258 § 429.48 | S$ 51,033 58,434 § 0.87 Fire S$ 363,077 2,258 § 160.82] $ 125,586 58,434 § 2.15 Transportation $ 4,822,455 2,258 $ 2,136.05] $ 1,668,063 58,434 § 28.55 Storm Sewer S 74,400 2,258 § 32.95|$ 25,600 58,434 § 0.44 Wastewater Services Wastewater (Grand Bend) S 6,050,127 2,890 $ 2,093.62 | S$ 2,081,764 74,795 $ 27.83 9.3 Step 7.3: Cash Flow Analyses Cash flow analyses were undertaken over the 10-year period 2022 to 2031 for services with a 10-year study period. A 20-year cash flow period was used for the other services. These analyses considered the transfers in and out of the respective reserve fund for each service and their timing. Cash outflows were according to the projected capital expenditures. Cash inflows were calculated by multiplying the projected annual residential population growth by the adjusted rate per capita and adding the product of the non-residential growth in floor area and the adjusted rate per square metre. The rates were increased by inflation assumed at 4% per year. The objective of undertaking the cash flow analyses is to ensure that the rates are sufficient to result in a zero net cash flow at the end of either a 10-year or 20- year period. The rates were adjusted to achieve this objective. Appendices E1 to E6 provides a cash flow table for each service. The adjusted rates are summarized in Table 9-3. The total residential rates (not including water and wastewater) were calculated to be $2,977.95 per capita and the non-residential rate $32.32 per m'. The adjusted rates for wastewater were determined to be $1,974.30 per capita and $26.25 per m? for residential and non-residential respectively. 28 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 Table 9-3: Adjusted Residential & Non-Residential Rates (After Cash Flow Analyses) Residential Non-Residential Service Rate 2 (Cost/Capita) Rate (Cost/m*) Municipal Wide Services Outdoor Recreation S 225.30 S$ 0.46 Indoor Recreation S 434.20 $ 0.88 Fire $ 155.36 $ 2.08 Transportation S 2,130.14 $ 28.47 Storm Sewer S 32.95 S$ 0.44 Wastewater Services Wastewater (Grand Bend) S 1,974.30 S$ 26.25 9.4 Step 7.4: Proposed Development Charges The non-residential development charges are the adjusted rates per square metre calculated as described in Section 9.3. The residential development charges by type of dwelling unit were calculated using the adjusted rate per capita and the respective household size estimates (persons per unit -- PPU) noted in Table 9-4 for each type of dwelling unit. The household sizes are based on the Statistics Canada 2021 Census data and the 2018 Development Charges Study charge allocation. Table 9-4: Occupancy by Dwelling Type . : Occupancy - Persons per Type of Dwelling Unit : yP 6 Unit (PPU) Single Detached & Semi- Detached Apartments -- 2 or More Bedrooms Apartments -- Bachelor & 1 Bedroom The proposed residential development charges by unit type are listed in Table 9-5 for each service and are based on the policies and rules noted in Section 4.2. The development charge for a single detached dwelling was calculated at $6,769.85 (not including water and wastewater) and $4,488.22 for the Grand Bend wastewater service area. Table 9-5 also shows the proposed non-residential rates at $32.32 per m? (not including water and wastewater) and $26.25 per m? for the Grand Bend wastewater service area. All charges are subject to annual indexing in accordance with O.Reg.82/98 Section 7. 29 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 Table 9-5: proposed Development Charges Residential Charge (By Dwelling Type) Non-Residential Charge Service Single Apartment Apartment Wind Serna) Industrial Units-One Units - Two Other : Institutional a Detached / : Turbine (per 2 (per metre : Bedroom or or More Multiples . (per metre Semi-Detached turbine) of GFA) Less Bedrooms of GFA) Municipal Wide Services Outdoor Recreation S 512.18 | $ 272.61 | S 362.73 |S 429.64] S - iS 0.46 |S 0.46 Indoor Recreation S 987.07 | S$ 525.38 | S 699.06 |S 828.00] S$ - iS 0.88 |S 0.88 Fire S 353.19 | S 187.99 | S$ 250.13 |S 296.27] S$ 353.19] S$ 2.08 | S$ 2.08 Transportation S 4,842.50 | $ 2,577.47 | S$ 3,429.52 | S$ 4,062.12] S$ 4,842.50] 5 28.47 |S 28.47 Storm Sewer S 74.92 |S 39.88 | S 53.06 | S 39.88] S 74.92 |S 0.4415 0.44 Wastewater Services Wastewater (Grand Bend) S 4,488.22 | $ 2,388.90 | $ 3,178.62 | $ 3,764.94] S - S 26.25 |S 26.25 10 Step 8: Comparison of Development Charges 10.1 Comparison with 2022 Existing and Proposed Development Charges Table 10-1 compares the proposed development charges with the existing 2022 charges. Table 10-1 shows increases in the proposed municipal wide charges for all residential dwelling types and non- residential charges. Residential and non-residential charges for the Grand Bend wastewater service area also increase over the current 2022 charges. As noted earlier there are no proposed administration charges, water charges and wastewater charges in the Forest wastewater service area as the administration reserve balance, water reserve balance and the wastewater reserve balance for the Forest wastewater service area exceed their respective recoverable net capital costs. As such no growth- related capital costs are available to be recovered from future growth, and therefore no development charges can be calculated for those services in this study. Table 10-1: Proposed vs. Existing 2022 Development Charges Residential Charge (By Dwelling Type) Non-Residential Charge Service Single aia EINES ; ; semaaiaey Industrial Detached / Units-One Units- Two Other Wind Turbine Institutional mame Semi- Bedroom or or More Multiples (perturbine) (per metre 2 een Detached Less Bedrooms of GFA) |___CURRENT(2022) CHARGES | |_ PROPOSED CHARGES Pd Po CIFFERENCE | 30 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 11 Step 9: Long-Term Capital and Operating Costs Implications This section presents the long-term cost implications of the investments to accommodate future growth. These assessments considered the implications to future operating and capital costs as well as the costs related to future asset renewal. The detailed projections are provided in Appendix F. 11.1 Long-Term Operating Costs The long-term operating cost impacts were based on historical operating costs per capita noted in the Municipality's 2021 Financial Information Return reporting, and the projected increase in growth. Table 11-1 summarizes the estimated increase in operating costs due to new growth as it related to each service area. The total accumulative 10-year increase in operating costs is estimated to be approximately $12.5 million, with $9.5 million being funded from future taxpayers, and $3.0 million being funded from future rate payers. Table 11-1: 10-Year Operating Cost Implications Cummulative Net Operating Impacts . Total Service Adminstration Growth-Related Studies S 1,220,651 Outdoor Recreation S 1,979,071 Indoor Recreation S 1,300,039 Fire $ 960,397 Transportation S 3,994,930 Storm Sewer S 42,893 Water S 1,461,700 Wastewater S 1,558,253 11.2 Long-term Capital Costs The long-term capital cost impacts were determined to be the portions of growth-related costs not funded by development charges due to deductions. These amounts include the "benefit to existing" amounts shown in Appendix D and would be funded through either taxes or the water and wastewater rates as the case may be. Table 11-2 summarizes the increase in capital costs (not funded through development charges) due to the addition of the new growth-related assets in each service area. The total 10-year accumulative increase in capital costs for the tax supported services is estimated to be approximately $20.9 million. The increase for the rate supported services (water and wastewater) is approximately $1.8 million. 31 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 Table 11-2: 10-Year Capital Cost Implications Cummulative Net Capital Cost Impacts By Service Total Adminstration Growth-Related Studies S 20,000 Outdoor Recreation S 3,121,000 Indoor Recreation S 6,407,354 Fire $ 1,806,000 Transportation S 9,420,750 Storm Sewer S 100,000 Wastewater Services S 1,750,000 11.3 Asset Management Plan The DCA Section 10(2) requires that an asset management plan be included in the Development Charges Background Study to capture the costs required to sustain the new growth-related assets over the long- term. This plan reflects the annual investments required to renew and replace the assets as they age. The growth-related capital cost estimates were annualized over the estimated life expectancies based on the future cost in projected the year of replacement. The estimated life expectancies used for the purpose of this study were 10 years for vehicles, 20 years for equipment, and 40 years for facilities and 80 for infrastructure assets. The total 10-year asset management requirements estimated to be $10.3 million. Approximately $7.2 million relate to tax supported assets and $3.0 million to rate supported assets. Table 11-3: 10-Year Asset Management Cost Implications Cummulative Lifecycle Impacts By Service Total Adminstration Growth-Related Studies S - Outdoor Recreation S 696,210 Indoor Recreation S 2,626,529 Fire $ 673,557 Transportation S 3,246,173 Stormwater S - Water S - Wastewater S 3,011,040 12 Step 10: Background Study & By-Law This background study report was prepared to provide the details required in accordance with the DCA Section (10) and O.Reg.82/98 Section (8), including the recent amendments resulting from the More Homes Built Faster Act 2022. A consolidated by-law is included in the draft study as Appendix G. The by-law identified all the services included, rules that apply to the development charges and schedules of applicable residential and non-residential development charges, and related smart growth exemption and area specific service areas. 32 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 13 Step 11: Stakeholder Consultation The DCA Section 10(4) requires that the Development Charges Study and the By-Law be made available to the public for review at least 60 days in advance of the passing of the by-law. This step in the process provides the opportunity for interested parties to make representations on the Development Charges Study and proposed by-law prior to finalization and implementation. The legislation prescribes that Council conduct a public meeting with at least 20 days' notice of the meeting. In accordance with O. Reg. 82/98, Section 9(1) notice may be by publication in a local newspaper, which in the Clerk's opinion, has with sufficient general circulation across the Municipality or by personal service, mail or fax to every landowner. The draft documents will be presented to Council and the public at a Public Meeting with a date to still be determined. All comments received will be considered and the study and by-law will be updated upon final approval by Council. 14 Step 12: By-Law Adoption & Implementation The final background study and by-law(s) will be prepared following consultation with stakeholders (as described in Section 13) and will be presented to Council for approval. In accordance with the DCA Section 13, written notice of the passing of the DC by-law(s) will be given no later than 20 days after the day the by-law(s) are passed (i.e. as of the day of newspaper publication or the mailing of the notice). The O.reg.82/98 Section 10(4) lists the items that must be covered in the notice. A pamphlet will also be prepared in accordance with O.Reg.82/98 Section 14 within 60 days of the passing of the by-law(s) and include the following: e adescription of the general purpose of the DCs; 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 DCs relate; and e ageneral description of the general purpose of the Treasurer's statement and where it may be obtained by the public. 33 DFA Infrastructure International Inc. Municipality of Lambton Shores 2022 Development Charges Background Study & By-Law December 8, 2022 15 Recommendations The following are the recommendations are presented for consideration by the Municipality. 1. That the revised Development Charges Background Study and By-Law be posted on the Municipality's website effective immediately for public review in accordance with the requirements of the Development Charges Act, 1997 Section 10 (4). 2. That following approval of the by-law, the required notices are issued to the public and stakeholders and a pamphlet is prepared, in accordance with O.Reg.82/98 Section 10 and O.Reg. 82/98 Section 14 respectively. 3. That the growth-related capital projects forecast identified in this Development Charges Background Study be approved by Council as a statement of its intention to meet the increased need for service due to growth, as required under O.Reg.82/98 Section 3. 4. That any excess capacity created as a result of undertaking the growth-related capital projects identified in this background study would be paid for by development charges and therefore deemed to be "committed" in accordance with the requirements of O.Reg.82/98 Section (5). 34 DFA Infrastructure International Inc. APPENDICES Appendix A-1 POLICY ITEMS CONSIDERED Appendix A- 1: POLICY ITEMS CONSIDERED Policy changes The revisions to the original draft background study and by-law include the removal of discounts provided to residential and non-residential development within Arkona and Thedford areas, and the removal of discounts provided to residential development within the core business areas of Grand Bend, Forest, Thedford and Arkona. The following Sections removed from the development charges by-law are as follows: Section 3.10 (h) For residential development in the core business areas of Grand Bend, Forest, Thedford and Arkona, as shown in Schedules D-1, D-2, D-3 and D-4, charges at 33.4% of the amounts set out in Schedule 'B' to this by-law, will be imposed. Section 3.10 (i) For residential and non-residential developments within the boundaries of Thedford and Arkona as shown in Schedule 'E', the charges are set at 50% of the calculated rate in the Background Study. The reduced charges applicable to Thedford and Arkona are shown in Schedule B. Schedules D-1 to D-4 and Schedule E as provided below were also removed from the by-law. Changes Due to More Homes Build Faster Act, 2022 Other changes to the background study and by-law resulting from the amendments to the DCA under the More Homes Built Faster Act,2022 are listed in the following table. For a full discussion of all amendments to the DCA please see Appendix A-2. Change Current By-law Proposed By-Law By-Law expiry To expire in 5 years from the passing of by- | To expire in 10 years from the passing of the by- law law Eligible Capital Costs Costs related to land and land Costs related to land and land development, and development, and the preparation of the the preparation of the DC Background Study DC Background Study included in excluded in calculation of rates calculation of rates Service Level Calculation | A 10-year historical service level was used A 15-year historical service level was used to to determine the maximum cost (cap) that determine the maximum cost (cap) that may be may be included in the DC calculations included in the DC calculations Exempt Development There are a variety of statutory and Additional statutory exemptions are provided discretionary exemptions provided in the under the More Homes Built Faster Act. See current by-law Appendix B-2 for details. Several exemptions are yet to be proclaimed Discount on Rental There are no discounts on the The creation of rental housing will be eligible for Housing Development development of rental housing discount on their charges based on the number of bedrooms contained within the rental unit Reductions to Calculated | No reductions to calculated charges Calculated charges will be reduced as follows: Charges Year 1 of By-law -- 80% of calculated charges Year 2 of By-law -- 85% of calculated charges Year 3 of By-law -- 90% of calculated charges Year 4 of By-law -- 95% of calculated charges ~_ % of yy VRE Va "Se PE i | ry, / YY g os SOO Be SCAN /) MOS EO LG SAIS ORAS TES S66 A Ug iS y mle Tl SS ERIEE on lo Sd PI pt AA pA - aoa ae 'd es a a i | aa Gait= ra So SS EAL | a seep ie a = ) BA eee 2 = . = Legend ---- ad ARKONAAND THEDFORD DEVELOPMENT CHARGE AREAS Appendix A-2 Bill 23 (More Homes Built Faster Act, 2022) |S ata | DFA Infrastructure International Inc. 664-B Vine Street St. Catharines Ontario Canada L2M 7L8 Telephone: (905) 321-9874 Email: [email protected] October 28, 2022 Re: Bill 23 - More Homes Built Faster Act, 2022 Preliminary Notes on Impact to Development Charges 1. Status of Bill (as of October 28, 2022) e 2m reading was October 27, 2022, voted deferred e It proposes changes to several Acts including the Development Charges Act and Planning Act as follows: ¥ City of Toronto Act, 2006 Y Conservation Authorities Act ¥ Development Charges Act, 1997 ¥ Municipal Act, 2001 v¥ New Home Construction Licensing Act, 2017 Y Ontario Heritage Act ¥ Ontario Underground Infrastructure Notification System Act, 2012 v Planning Act Y Ontario Land Tribunal Act, 2021 Y York Region Wastewater Act, 2021 Bill 23 - More Homes Built FasterAct, 2022 Summary Notes on Impact to Development Charges October 28,2022 2. Changes to Development Charges Act (Schedule 3 of Bill 23) tem Comments 7 Potential impact 1.1. Subsection 2(4) ubsecnon e Loss of DC revenue that would currently be e = The following would be exempt from DCs: collected for 3rd units on existing and new Y enlargement of an existing residential unit properties v the greater of 1 additional unit in rental residential buildings or 1% of existing . or a: . . wg: . wg: e Loss of DC revenues from new single - units in the building. Rental residential buildings are defined as rental buildings . - we . . . detached dwelling may not be significant with 4 or more units for the purpose of renting . . ; . oe Lae . . as most new single detached dwellings are ¥ 2nd and 3rd residential units in existing and_new single-detached, semi- . . . . . . not built with 2nd units. Therefore there is detached or row house and in ancillary structures such that there would be a . . . currently no revenue from 2nd units. maximum of 3 units on the property 1.2. ion 2(4) . . Subsection amended e Growth related capital costs for Housing e Housing services removed as a service to which development charges may apply Services would no longer be recovered through DCs. Funding from taxes would be required. If an existing by-law contains DCs for Housing services, these would no longer be collectable on the date Bill 23 becomes law. 1.3. New sections 4.1 --ooaooeorr e Loss of DC revenue from these types of e The following types of development would be exempt from development charges: developments units, all else being equal ¥ affordable residential units and attainable residential units e These changes would become effective on a date to be proclaimed by the Lieutenant e Affordable Residential Units may be units for rent or for purchase: Governor. DCs for these types of properties Y affordable residential units (rental) are those to be rented at a maximum of vate continue to be collected until that 80% of the market rent for the year in which the unit is rented as published by . Municipal Affairs and Housing in a bulletin entitled: "Affordable Residential | e The exemptions noted would not apply to Units for the Purposes of the Development Charges Act, 1997 as amended any existing DC by-laws at the time these periodically. The tenant must also be at arm's length from the landlord. sections come into force. Therefore these types of units would continue to pay DCs 2 DFA Infrastructure International Inc. Bill 23 - More Homes Built FasterAct, 2022 Summary Notes on Impact to Development Charges October 28,2022 Y affordable residential units (ownership) are those to be listed at a maximum until a new by-law takes effect. of 80% of the average purchase price in the year the unit is sold as published - . . , . , , 1 . . e Municipalities would need to monitor the by Municipal Affairs and Housing in a bulletin entitled: "Affordable Residential . . . rents over a 25-year period. This would Units for the Purposes of the Development Charges Act, 1997 as amended ss . . . or \ mean additional administration capacity periodically. The purchaser must also be at arm's length from the seller. and costs. e affordable residential units (rental and ownership) must continue to be "affordable" | ¢ The definition of "attainable units" is not for 25 years from the initial date of rent or sale in order to be exempt from DCs. complete as it is still subject to new Agreements between developers and municipalities would be required under the new regulations under the More Homes Built section 4.1(9). Faster Act, 2022. e attainable Residential units exclude units defined as affordable rental or ownership | ® The MHBF Act is silent on how soon a first units. They are defined as units that meet the following criteria: time buyer of an attainable unit may sell the unit at market value. There is the Y units not intended for rent possibility for a person to purchase at 80% v units developed as part of a development to be further defined by regulation market value and resell at market value for vY the buyer and seller must be at arm's length a profit defeating the intent of Y Other criteria to be further defined by regulation affordability. e = The MHBF Act is silent on how the market e attainable residential units must be "attainable" when the unit is first sold in order to value for rentals and sale prices would be be exempt from DCs. Agreements between developers and municipalities would be determined and applied to the required under the new section 4.1(11). geographical areas across the Province. e the agreements between developers and municipalities would be required under the new sections 4.1(9) and (11): ¥ Municipal Affairs and Housing may establish a standard agreement that must be used ¥ Municipalities may register these agreements against land title and enforce the agreement provisions against any and all subsequent owners. 3 DFA Infrastructure International Inc. Bill 23 - More Homes Built FasterAct, 2022 Summary Notes on Impact to Development Charges October 28,2022 1.4. New section 4.2 . --=_--'"--> e Not profits are already exempt by most e Not-Profit Housing would be exempt from development charges municipalities so the revenue impact . . . . hould be minimal. e Any future DC instalments to be paid by non-profit housing would also be exempt. srrouia pe mining e In cases where municipalities apply the DCs to Non-Profit housing then there will be a more significant revenue loss. However, existing by-laws would continue to apply until a new by-law takes effect. e In cases where non-profits are paying DCs by instalment all future instalment payments would no longer be collectable, once Bill 23 becomes law. 1.5. New section 4.3 e ~=Loss of DC revenue that would currently be e = Inclusionary zoning residential units are defined as residential units that are affordable conecie' under an eng DC By-law once units required to be included in a development under Section 34 of the Planning Act. xIsting Oy-law expires e These would be exempt from development charges unless a DC applies at the time Bill 23 comes into force 1.6. Section 5 (1) Changes oo. . e = The historical service levels are used to set . . ; ; the maximum amount of capital costs that e The historical service levels would be based on the past 15 years instead of 10 years as red can be recovered through the DCs for a current ¥ require ; ; , ; particular service. A longer historical ° Existing by-laws would continue to apply regarding the historical service levels when period of 15 years would tend to lower the Bill 23 becomes law, until a new DC by-law is approved. maximum and the amount that would be recovered through the DCs. The net result would be lower revenues. e There is no impact on the existing by-laws that would be in effect at the time Bill 23 becomes law. However, any subsequent by-laws would have to use the 15-year 4 DFA Infrastructure International Inc. Bill 23 - More Homes Built FasterAct, 2022 Summary Notes on Impact to Development Charges October 28,2022 Rf 1.7. Section 5 (3) Chang garding Land Cost . Senron anges renaroing sang sosts e Land costs are currently included as a cost ; . ; . to be recovered through DCs the exclusion e The costs to acquire land including leasehold interest may be excluded from the DC . ; ; : ; of land costs for some service would result calculations for some services yet to be identified by new regulations . in lower DCs and revenues e The timing of this exclusion is uncertain as it would depend on when the regulations are made. 1.8. Section 5 (3) Chang ith resp Studi ection anges WItn respect to studies e Revenues under current DC by-laws would e Costs for studies related to land and land improvements, and the DC Background Study not be affected but in future by-laws less costs, would be removed from the eligible capital costs that can be included in costs would be recovered from DCs calculating the development charges resulting in lower DC revenues e Existing by-laws would continue to apply with respect to studies when Bill 23 becomes law but new by-laws would be required to exclude studies. . . i i ~ . eT ad 1.9. Section 5 (6) and (7) changes with respect to By-Law Rules ° Revenues from DCs would be significantly e The following limitations to the amount of DCs that can be charged apply to all by-laws reduced during the first 4 years of a DC by- passed on June 1, 2022 or after, once Bill 23 becomes law: law that became effective on June 1, 2022 ¥ Inthe 1st year of the by-law a maximum of 80% of the calculated charge or later. ¥ Inthe 2nd year of the by-law a maximum of 85% of the calculated charge ¥ Inthe 3rd year of the by-law a maximum of 90% of the calculated charge v¥ Inthe 4th year of the by-law a maximum of 95% of the calculated charge e lf a DC under a by-law that took effect on June 1, 2022 is payable before Bill 23 becomes law, then the DC must be paid. . . i ( ) 1.10 Subsection 9(1 e Reduces the frequency and costs to e DC by-laws would expire in 10 years instead of the current 5 years prepare DC by-laws. e Existing by-laws with a 5 year expiring date would maintain the expiry ate even after © DC revenues in the second 5-year period Bill 23 comes into force i.e. until a new by-law takes effect . . may be deficient relative to growth related 5 DFA Infrastructure International Inc. Bill 23 - More Homes Built FasterAct, 2022 Summary Notes on Impact to Development Charges October 28,2022 costs that would be incurred. e Section 9(2) gives municipalities the ability to pass a new by-law anytime during the 10 year period , to more accurately reflect growth related costs 1.11. Sections 26.1 and 26.2 changes © Loss of DC revenue from these types of ; oo, developments units, all else being equal e The DCs on rental housing and institutional development shall be paid in 6 equal instalments over 5 years. e Some municipalities already provide e DCs imposed on rental housing is reduced based on the number of bedrooms: incentives/ discounts for rental housing units ¥ 3 ormore bedrooms - 25% reduction on DCs e /t appears that institutional development ¥ 2 bedrooms - 20% reduction on DCs would also be charged in instalments. Yall other residential units intended for rental use - 15% reduction on DCs Many municipalities exempt institutions so this may not have a significant impact on These reductions do not apply if the building permit is issued before Bill 23 comes into revenues force e This may require additional monitoring of units and number of bedrooms actually built to reconcile with the discounts and DCs paid - added administration 1.12. Section 26.3 (new) e Would require additional monitoring and . . ; . administration - higher costs e the maximum interest that can be charged due to the instalment payments noted in sections 26.1 and 26.2 would be a base rate plus 1%. The Base Rate would be | _ The Bill is not clear on how the adjusted determined as follows: interest rate each quarter would apply. It is likely that it would apply only to new v The base rate would be the average of the prime rates announced by RBC, CIBC, TD agreements in that quarter. However it is and Bank of Nova Scotia for commercial loans unclear if the rates on_ existing vY The base rate would be determined for April 1st, 2022 and adjusted afterwards on agreements signed in a previous quarter January 1st, April 1st, July 1st and October 1st using the average prime rates would need to be adjusted quarterly. This announced on the previous October 15th, January 15th, April 15th and July 15th would require major administration effort. FA Infrastructure International Inc. Bill 23 - More Homes Built FasterAct, 2022 Summary Notes on Impact to Development Charges October 28,2022 respectively These changes do not apply to DCs payable on prior to Bill 23 coming into force. 1.13. New Sections 35(2) and (3) oe ne e Municipalities would need to Municivaliti id b red d | % of th fund advance/construct projects more quickly. e snipe ities wou . eares he spen or allocate 60% of the reserve funds to Capacity to do so may be limited either growth projects annually for the following services: internally or externally with industry oo, . ae ; service providers. ¥ Water Services including supply and distribution services v Wastewater services including collection and treatment services e May require additional resources to v¥ Highway related services increase capacity to advance projects more ¥ Other services as may be prescribed by regulation quickly e Municipalities could possibly commit funds to specific projects to meet this requirement even though the projects would not begin immediately. e Bill 23 is silent on the implications if municipalities do not meet _ this requirement 1.14. Revocation . --eEeEarrr. e Noimpact e Subsections 11.1 (1) and (3) of Ontario Regulation 82/98 are revoked. These are definitions for rental housing and non-profit housing that would instead be defined in the DCA once Bill 23 comes into force. 7 DFA Infrastructure International Inc. Bill 23 - More Homes Built FasterAct, 2022 Summary Notes on Impact to Development Charges October 28,2022 In summary, the changes to the DCA would result in: e Less costs to be included in the calculation of the DCs e More exemptions and discounts. Therefore less revenues to be collected e More administration by municipalities and possibly higher costs e Higher taxes and water & wastewater rates as the case may be to make up the funding shortfall from DCs These would impact each municipality differently depending on size, development activity and ability to absorb revenue losses. Prepared by, DFA Infrastructure International Inc. Derek Ali, MBA, P.Eng. President 8 DFA Infrastructure International Inc. Appendix B Growth Projections Appendix B: GROWTH PROJECTIONS MUNICPAL WIDE PROJECTIONS Persons Per Unit by Dwelling Type Type of Dwelling Persons per Unit (PPU) Single/Semi-Detached/ Duplex 2.27 All Dwelling Types (Average) 2.18 Source: Statistics Canada. Table 98-10-0041-01 Structural type of dwelling and household size: Canada, provinces and territories, census divisions and census subdivisions( 2021) Household Growth by Unit Type 1 % of % of Growth Item % of Total 2032-2041 1 Total 1 Total Total Single/Semi-Detached 86.49% 86.49% | 1,782 | 86.49% po 0% fT -.00% |_| 0.00% Total Households 1,030 0.00% 1,030 | 100.00% 2,060 | 100% 1. 2022-2041 Housing Mix Percentages Based on 2017 to 2021 Housing Starts by dwelling type (CMHC) Allocation of Growth Urban Centres 2016 Population 2277 Grand Bend 2684 Thedford Subtotal 6344 100% 42e7_ | joes1 Source: County of Lambton, Population Projections Census Years 2016 to 2036, planning and development service Dec 2017, adopted by County of lambton Projected Number of Households & Annual Increase (10 Years ) 10-Year Development Charges Study Period (2022 -2031) | Growthitem | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031_| 2022 to 2031 Units Growth 1,030 2022 to 2031 Units Growth as % of 2022 to 2041 Growth 50% Appendix B: GROWTH PROJECTIONS Projected Number of Households & Annual Increase (Beyond 10 Years to Build Out) [Growinitem | m0se | 05s | rose | mass | zose | v0s7 | zoss | oso | 2040 | 2081 | ptow [ioe [aoe [aoe [am [ax [aw [ome |e || Historical Population (Last 10 years) sewn id ee | os | tone | oo | ae | ms | tom | mn | OO po ies 1.Statistics Canada Census Population for 2006, 2011, 2016 & 2021. Interpolation in between years. 2. 2022 to 2041 Total Population based on an average PPU of 2.2 from 2021 Census. A 2.84% census undercount is used to obtain 2021 Census population. Interpolation in between years. Census undercounts noted in 3. below used for 2006, 2011 and 2016 3. Census Undercount (Statistics Canada Annual Demographic Estimates:.in 2011 Projected Population & Annual Growth (10 Years) Prowse zoe | aos | aoe | aons | aors | zor | ore | 2029 | 2030 | 2oai_| po TT iiss ee) Appendix B: GROWTH PROJECTIONS Projected Population Growth & Annual Growth (Beyond 10 Years to Build Out) Projections to Build Out Census Population (Excluding undercount)? 14,341 14,565 14,789 15,013 15,237 15,461 15,685 15,909 16,133 16,357 pee es] aes] aes | tes | tes |r| tae Total Population (Including undercount)? 14,748 14,978 15,209 15,439 15,670 15,900 16,130 16,361 16,591 16,822 a Od) ) Population Growth (EXCLUDING Undercount) 2032 to 2051 Growth | 22a | Population Growth (INCLUDING Undercount) 2032 to 2041 Growth | 2304) Projected Employment Population & Floor Space Growth (Next 10 Years) 10-Year Development Charges Study Period Employment Population* 4,217 4,295 4,373 4,451 4,529 4,607 4,685 4,764 4,842 4,920 Total Employment Population Growth for Period 2022 to 2031 Growth Commercial - Population Related 35 35 35 35 35 35 35 35 35 35 Industrial 25 25 25 25 25 25 25 25 25 25 Employment Population Growth for Period 2022 to 2031 Growth 198 ui 1199 199 ee 1199 us 19 1199 ae Commercial - Population Related 1,784 1,784 1,784 1,784 1,784 1,784 1,784 1,784 1,784 1,784 nee net meet net net meet nee net net net Total Annual GFA Growth (sf) 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 GFA Growth (m?) for Period 2022 to 2031 Growth 58,434 "sross ret ae = ret = ° 7 m _ ° 7 Pf | Et Commercial - Population Related 1. Employment Population Based on an employment activity rate of 0.349 jobs per capita (2016 Census) 2. Employment Growth Between 2022 & 2041 by Employment Type from 2016 Place of Work Status by Industry Institutional 369 24% Commercial - Population Related 700 45% Industrial 493 32% 3. GFA Projections determined by multiplying the respective employment population by the GFA per employee 4. GFA Per Employee is from 2017 C StudyTable 5-10 Appendix B: GROWTH PROJECTIONS Projected Employment Population & Floor Space Growth (Beyond 10 Years to Build Out) ee a oncom Tf | | f | | | | | em | | | | | | | | | | Appendix C Historical Service Level Calculations Appendix C-1 Table 1 Municipality of Lambton Shores Calculation of Service Standards Outdoor Recreation (Parkland Development) Unit Measure: Value of Outdoor Recreation Parkland Development Per Capita Inventory (Acre) & Current Replacement Value 2022 AA 2022 Value Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Replacemen (Siac) t Value a GG GG GG SG CO (CO |GrandBendRiverRdPark Cd || oso | oss | oso | oso | oss | oso | oso | oss | oso | oso | oss | ea] 0.69 | $ 244,241 | $ 168,526 | [Downtown ParketteMainst_ || oT og | os | ooo | oop | os | ooo | oop | os | ooo | oa | os | og | 09 | $ 323,522| $29,117 | [Park Area Beside EilberStMunicipal Parkingtot | 9 | og | og | os | ooo | og | oo | oop | oop | oo | oo | oop | oop | 09 ||. | $ 394,g89|$ 35,540 | IMillstparkland ts | ao toa | os | oat aa | os | ono] ag | os | ao] aa | os | oa | ag | $52,037] $ 25,498 | a GR GG (OG (OO (OOO GO Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Average Population tag | ta33a] 1210] toss] 10,966{ 10,959] 10,953] 10,946 | 10,940] 10,933] azis9 | 1444s | 14701] 13957] 12,213 | Service Level Cap 15-Year Appendix C-1 Table 2 Municipality of Lambton Shores Calculation of Service Standards Outdoor Recreation (Trails) Unit Measure: Value of Outdoor Recreation Trails Per Capita Inventory (square metre) & Current Replacement Value -- 2022 Value ae Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ($/metre) Replacemen t Value GC GG GO C(O OO Pe Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Average [Population tz | 133] 1220] toga] 10,966 | 10,959 | 10,953 | 10,946 | 10,940] 10,933 | 1aag9| 1444s | 14701 14957 | 12,213 | Service Level Cap 15-Year Appendix C-1 Table 3 Municipality of Lambton Shores Calculation of Service Standards Outdoor Recreation (Parks Amenities) Unit Measure: Value of Outdoor Recreation Parkland Amenities Area Per Capita Inventory (unit) & Current Replacement Value 2022 -- 2022 Value Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 : Replacement (per unit) Value a GG GG GCG GG GG a GG GG GG GGG GG GO JGazebo 8 870,596 | $282,382 | luifeGuardstands Pa a aa a as 8707 [$34,826 | SoccerFields PT S310 $22,262 | splashPads Pa aa 174,723 | $698,891 | a GG GG (C(O Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Average [Population Tz | 2332] 2a0 | toas| 10,966 | 10,959 | 0,953 | 10,946 | __----0,940 | __--_--0,933 | aaaso | --aaaas | --aazoa| --aa957{ 12,213 10 Year Funding Envelope Calculation Service Level Cap 15-Year Appendix C-2 Table 1 Municipality of Lambton Shores Calculation of Service Standards Indoor Recreation (Facilities) Unit Measure: Value of Indoor Recreation Building Area Per Capita Inventory (Sq. Ft.) & Current Replacement Value a 2022 Value aire Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (g/ft2) Replacement Value a OGG CY GG GE OC QO club, coultis pk washroom |PortFranksHarbour-GateHouse | 969 | 69 | 69 | sg | es | 9 | pe | | sg | ss | so | te | ps9 | 69 |e |S S00 | $ 484,400 | JBeachBandshell | ore | tore | 076 | tore] 4076 | 76 [$500 | $ 538,000 | [Port Franks Youth Pavilion | =P aren gre 722 | rea P72 area ft a7a2] 722 722[$ 500] $ 861,000 | GG YG CO (CO (GY (YO (CO Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Average [Population tts | 331] 14220] toss] 10,966 | 10,959| 10,953 | 10,946 | 10,940| 10,033 | argo | 144s | taro] 14957 | 12,213] Service Level Cap 15- Year Appendix C-3 Table 1 Municipality of Lambton Shores Calculation of Service Standards Fire (Facilities) Unit Measure: Value of Fire Protection Building Area Per Capita and Employment Inventory (Sq. Ft.) & Current Replacement Value -- 2022 Value ae Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ($/ft2) Replacement Value Po a GQ GG GG GQ QQ QO Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Average [Population tz | a33a] taza] toss | 10966 | 10,959 | 10,953 10.946 | 10,940 | 10,933 aasa9 | aaa | aazoa{ 34957] 12,213] [Employment T4836 290 aaa | aoa] zag | 3,712] 3,710] 70a] 37o7| 3,705 3,792] 3,879] 3,965 4052] azo | [Total Historic Population &Employment__| 15,789 15,621 15454] 15,286 | 14ego| 14671] 14663] 14655] 1a6ae | 14638[ 14g9g1| 5,324 | 15,666 | 16,009 16,352] Service Level Cap 15- Year 0 Appendix C-3 Table 2 Municipality of Lambton Shores Calculation of Service Standards Fire (Vehicles and Equipment) Unit Measure: Value of Fire Protection Vehicles & Equipment (Units) Per Capita & Employment Inventory (No. of Vehicles & Equipment) & Value 2022 2022 Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Replacement Replacement Value Value Jarkona [Forests [-Rescuepumper a a a a a a a fs 538,718 [538,718 | [-Squadpickup a a a a a a a a a fs 55,367 [$55,367 | JGrand Bends [-pickup-Fordsuperduty Pt fs 59,000 | 559,000 | [Northvitle is [Thedford scenetights Pe 2s 1,000 | $22,000 | [Radios ttt ttt foo S00 |S 54,000 | lextrication ss es es ss es ss fs 30,000 [$180,000 | lFittestequip a i fs 18,000 [$18,000 | |Generaton ss ee ee ee TS 15,000] $90,000 | [Thermal /Infraredcameras TT ts ss ss ee 7 $170,100 [ $1,190,700 | lWaterRescueequip Pa fs 15,000 $15,000 | rot te] te] te | te | te7 | ss] sso] ss9| saa] saa] oto | za] 2a | 632 | Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Average [Population tt | 33] ta210| toss] 10,966 | 10,959 | 10,953] 10,946 | 10,940 | 10,933 | ataso | taaas | 4701] 14957] 12,213] [Employment 886] 290 aa | aga 3 71a[ 3712 3,710 3,708] 3707] 3,705] 3,792] 3,879] 3,965] 4052] azo] [Total Historic Population & Employment | 15,789 | 15,621| 15,454] 15,286 | 14680| 14,671 | 14663| 14,655] 146ae[ 14638 | 149a1| 15,324] 15,666] 16,009 | 16,352] Service Level Cap 15- Year Appendix C-3 Table 3 Municipality of Lambton Shores Calculation of Service Standards Fire (Land) Unit Measure: Value of Fire Protection Land Per Capita and Employment Inventory (Square Metre) & Current Replacement Value 2022 Unit 2022 Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Value Replacement ($/m?) Value Po Jarkona CST] ona | oa | oa | 0a | 0.04 | 0.04 | oa | 00a | oa oa] oa | 0.04 | $175,000] $ 7,000 | CG GC GO (GO GO (CO CO (OO otal zz zo] 39] 39] 39] 39] 39] 39] 39] 39] 39] 139] 139| 139 | Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Average [Population 453] 12,331] 12,210] 11,088 | 10,966 | 10,959] 10,953 | 10,946 | 10,940| 10,933 | 11,189 | 11,445] 11,701 | 11,957 | 12,213 | |Employment T4886] 4290] 4244 | 498 | 3,714[ 3,712] 3,710] 3,708 | 3,707| 3,705] 3,792 | 3,879] 3,965] 4052] 439 | [Total Historic Population & Employment | 15,789[__15,621| 15,454 | 15,286 | 14,680| 14,671] 14,663| 14,655 | 14,646| 14,638] 14,981 | 15,324] 15,666 | 16,009] 16,352] Service Level Cap 15- Year 0 Appendix C-4 Table 1 Municipality of Lambton Shores Calculation of Service Standards Transportation (Roads) Unit Measure: Value of Transportation - Roads, Sidewalks, Streetlights and Traffic Controls per Capital and Employment Inventory (No. Km) & Current Replacement Value so 2022 Value ie Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ($/km) Replacement Value po [Traffic lights /controtlers Pa a a a a a a a a a aa Ts 100,000 | $400,000 | Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Average population atts faa zz | azo] atosa| 0966] 10.959] 30,953] tsa | tao] 10.933] aaa | aaaas | ttvor|aags7| 2.23] [employment 36 T4903 rag azo 70st 3 7o7{ 3,705] 92 | 38793965] 52 azo | [Total Historic Population & Employment* | 5,789 [15621 asa] 15,286] aso 4e7i| tacos | t4o5s[ teas tase] agai | 5324] 5666] 16,009] 16,352] Service Level Cap 15- Year Appendix C-4 Table 2 Municipality of Lambton Shores Calculation of Service Standards Transportation (Bridges and Culverts) Unit Measure: Value of Transportation - Bridges and Culverts Per Capita and Employment Inventory (No. of Units) & Current Replacement Value se 2022 Value Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ($/unit) a GG GG GG [parklane-Hickery Creek Pa a a a a a a ats 420,240 | |cedarPointline Ta a a a a a a a a a fs 357,204 | |GordonRoad a a a a a a a ats 325,686 | KinnairdRoad a a a a a a a a a as 297,670 | [BrucescottRoad a a a a aa ts 287,264 | llakeshoreRoad(Highway21) | a a a a a a a a t's 2,884,000 | [Riverside Drive-MudCreekBridge | Pt a a tts 942,038 | Ridge Road a a a a a a a tts 392,224 | [Main Street-Alexander Drain, | Pt tat at tt 605,228 | JprushRoad a a a a a a a tts 294,580 | |cedarPointline a a a a a a a a a a fs 166,036 | cedarPointline a a a a a a a ats 99,086 | FullerRoad a a a a a a a a a a fs 291,902 | |cedarPointline a a a a a a a as 377,598 | Proofing a a a a a a a a a a fs 83,028 | rullerRoad a a a a a a as 294,580 | Proofline a a a a a a a a a a 342,784 | cedarPointline a a a a a a ats 302,624 | Juratine a a a a a a a a a a fs 155,324 | JarmyCampRoad a a a a a a a as 267,800 | WerichoRoad a a a a a a a a a a fs 267,800 | Ridge Road a a a a ats 444,023 | WerichoRoad a a a a a a a a a a fs 147,290 | cedar Pointtine a a a a a a ts 139,256 | [RockGlenRoad Ea a a a a a a a a a fs 380,070 | |Farmerstine tt at tts 136,578 | |GordonRoad a a a a a a a tts 55,324 | [DeckerRoad a a a a a a a a a a fs 262,444 | [Ravenswoodtine a a a a a a a ats 374,920 | kennedytine a a a a a a a a a a fs 38,682 | Kennedy tine a a a a a a a as 97,850 Kennedytine a a a a a a a a a a fs 176,748 | [Ravenswoodtine a a a a a a a as 637,364 | JArmyCampRoad Ea a a a a a a a a a fs 206,206 | lprucescottRoad a a a a a a a ats 179,426 | JArmyCampRoad a a a a a a a a a as 476,684 | Jouter Drive a a a a a a a ats 402,700 | JouterDrive a a a a a a a a a a fs 224,982 | outer Drive aa a a aa as 163,358 | JWalkerRoad a a a a a a a a a a fs 79,426 | [Pinetree Drive aa a a aa ts 26,928 | [BeachO'PinesRoad Ta a a a a a a a a a fs 329,394 | jtakeviewRoad Pt tt a tts 176,748 | Jil Road a a a a a a a tts 393,666 | [Mainstreet tt tt a ttt 1,025,674 | |SaubleRoad-WhiskeyBridge | a a a a a a ts 369,564 | [thomsontine a a a a a a a a a a fs 366,886 | uratine a a a a a a ats 5,745 | uratine a a a a a a a a a a fs 70,206 | lKinnairdRoad a a a a a a a ats 56,752 | Juratine a a a a a a a a a as 55,566 | JarmyCampRoad a a a a a a ats 37,054 | JArmyCampRoad a a a a a a a a a a fs 55,057 | [rullerRoad a a a a a a a tts 45175 | Appendix C-4 Table 2 Municipality of Lambton Shores Calculation of Service Standards Transportation (Bridges and Culverts) Unit Measure: Value of Transportation - Bridges and Culverts Per Capita and Employment Inventory (No. of Units) & Current Replacement Value -- 2022 Value Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ($/unit) a GG GG GG GO [church sta a a a a a ats 87,983 | [RockGlenRoad Ea a a Fs 300,898 | erichoRoad a tts 64,220 | |GBBridgeRailing Ta a a a a a a a fs 77,723 | [Steel beamguardrail Ea a a a ats 22,269 | JouterDrive a a a a a a as 40,839 | Jouter Drive a a a aa ts 49,839 | JgiliRoad a a a a a a as 25,803 | lutakeGuard Rail a a a a ats 8,586 | [PedestrianBridge Tt fs 65,000 | | froth stat st ttt | Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Average [Population tz | taza a2a0] toss] 10966 | 10,959 | 10,953] 10946 10,940{ 10,933] aaag9 | tags | anor] a9s7{ 12213 [Employment Tze | 290 | za | aga | 7a] 372] a7ao| 37st 3,707] 370s} 3792{3a79| 3965] 452 {439 | [Total Historic Population & Employment | 5,789] 15,62a{ 15,454] 5286] 1460] 1467i| 14603] 14655|14eae | iaeaa | 14sai| 15,324] 5,666 | 16,009 16,352] Service Level Cap 15- Year Appendix C-4 Table 3 Municipality of Lambton Shores Calculation of Service Standards Transportation (Vehicles and Equipment) Unit Measure: $/units Inventory (No. of Vehicles and Equipment) & Value -- 2022 Value are Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ($/vehicle) Replacement Value GG GG GG (YO (YG (CO Pickuptrucks TT FS 50,000 | $300,000 | [Heavy DutyPickUp(25o0) | ts 60,000] $60,000 | Hydrovac (frombc) a a a atts 675,000 | $675,000 | Frontend loader tt t's 250,000 | $250,000 | JSkyjack vertical lift a a a ata fs 15,000] $15,000 | [Bucket Truck at aS 255,000 $255,000 | |50' towableboom-replacedin 2022 with buckettruck | Pat 75,500] $75,500 | |messageboardsigns TP eee as 8,000] 16,000 | |messageboardsigns TT as 8,000] 16,000 | speedsigns a a a a ats 4000] $8,000 | aC CO GCOS GG (CO GY (QO (CO (OO OE froral ta ta] | as | as ||| Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Average [Population tts | 19332] 1t2t0 | toss | 10.966 | 10,959] 10,953] 10,946 | 10,940 | 10,933] iaig9 | 144s | aa7o1| --atos7| 12,213 | Employment T4836] 290 | ga | aga | zag] 3,712 3,710| 3,708 | 3,707 | 3,705] 3,792] 3.879 3,965 | 4052] azo | [Total Historic Population & Employment | 15,789 | 15,621| 15,454] 15,286 | 14ea0| 14671[ 14,663] 14,655] 14,646 | 14e3a| 14981] 15,324[ 15,666 | 16,009 | 16,352] Service Level Cap 15- Year Appendix C-4 Table 4 Municipality of Lambton Shores Calculation of Service Standards Transportation (Facilities) Unit Measure: Value of Transportation - Building Area Per Capita and Employment Inventory (Sq. Ft.) & Current Replacement Value 2022 Bid'g 2022 Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Value Replacement ($/ft2) Value a GC GC GG GC GC CO GG CO |ForestShop-Annst_ | 92385] 9235] 9235] 923s] 9235] 9.235 | 9,235] 923s | 9,235 | 23s 92a | | TTS 500] $4,617,500 | |ForestShop-RawlingsRd T9090] 2690] 2,690] 500 | $ 1,345,000 | lsaltstorage co F000 | 4000 | 4000 | 000 | 4000] 4000 4000 | 4,000 $ 500 | $ 2,000,000 | GC GG (OY GY (0 (OY CO froral sa | 27 6a] 27684] 27684] 27684] 27684] 3i6a5| 3a6as| 3ieas| aaeas| 31685 | 25,140 | 25,440] 25,140 25,140 | Description 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Average Population Taz | 332] 1220] oas| 10,966 | 10,959 10,953 | 10,946 | 10,940] 10,933] atasa| 1444s | a,7or] --1a9s7 | 12,213 Employment T4886 | 290] 24a | aoa] aria 3,722 3,740] 30a} 3,707] 3,705] 3,792] 3,879] 3,965] 4052] 439 [Total Historic Population & Employment | 15,789 | 15621] 15,454] 15,286| 14,680] 14671 | 14,663] 1465s| 14,646 | 14e3a| 14,981] 15,324] 15,666 | 16,009 | 16,352] Service Level Cap 15- Year Appendix D Net Capital Growth to be Recovered from Development Charges Appendix D-1 Table 1 Municipality of Lambton Shores Administration Growth-Related Studies Capital Costs Included in Development Charges Calculation Less Less: Less: DC Eligible Costs GREIE, Benefit to Existing Total : Total Residential | Non-Res. Subsidies & Development Total Post Period Share Share . . : . Development . Development Increased Service Needs due to Anticipated Development Year Gross Project Development Net Municipal Development R bl Capacity to dies a 2022-2031 Required Cost Contributions Capital Costs Recoverable Adjustments ecoveranle be Carried Jus men . Costs Net of Due to Service Attributable to $ % Costs . Forward 74% 26% Adjustments Level Cap New Development a GG OS OOS SG OSG Strategic Priorities / Visioning 2023 [§ 40,000 $40,000 [$ 20,000 $_20000f Sooo PT a GG OS OOS SO OSG RG GG GG (OS OO | ReserveBalance 20,000] $ o00f | Debt |_ReserveDeficit [credits Appendix D-2 Table 1 Municipality of Lambton Shores Outdoor Recreation Capital Costs Included in Development Charges Calculations Less: Less: Less DC Eligible Costs (Chet, Benefit to Existing Total Total Residential Non-Res. Subsidies & Development Total Share Share . . . . Development Post Period Development Increased Service Needs due to Anticipated Development : Gross Project Development Net Municipal Development . . Year Required "Ls . . Cost Recoverable Capacitytobe Cost Adjustment 2022-2031 Cost Contributions Capital Costs Recoverable Adjustments . . : Net of Carried Forward Due to Service Attributable to $ % Costs . 95% 5% Adjustments Level Cap New Development |_RecreationMasterServicingPlan |S 2025 S000 sd S60,000|$ 30,000 $30,000 | dS goooof PT a GGG ESO GG OG Outdoor Rec - GB Rotary Trail Exp $414000[ S$ 414,000 [$289,800 $ 124200 | dS azazoot a GG GO ESO SG GG SO GO Outdoor Rec - FO Rotary Trail Exp [2025 [Ss 216000] |S 216,000 |$ 151,200 $ 64800 | dS e4g00] | a GG GO ESO SO GG SO GO Outdoor Rec - Ipperwash Trail 2023-2027 [$2,000,000] [$2,000,000 [$1,400,000 $600,000 | TS sooooof a GGG ESO SO GO SO GO Outdoor Rec - Ipperwash Community Park 2030 |$_1,000,000[ | $1,000,000 [$ 850,000 $150,000 | dS asoooof Klondyke Park $300,000 | $800,000 |$ 400,000 $_ 400000 | TS aoooo0f a GG GG GO C(O SO GO | ReserveBalance PS 863,401 63.40 [Debt | ReserveDeficit [credits Total Estimated Capital Costs fo $ 4,490,000 $4,490,000 | $3,121,000 aa § 1,369,000 | $ 863,401 | $§ 505,599 $ 505,599 | $480,319 | $ 25,280 Appendix D-3 Table 1 Municipality of Lambton Shores Indoor Recreation Capital Costs Included in the Development Charge Calculation Less Less: Less DC Eligible Costs Grants, . ' -Res. a Benefit to Existing Development Total Total Residential Non-Res. Subsidies & Total . Share Share . , . . oe Development Post Period Development Increased Service Needs Attributable to Anticipated Development . Gross Project Development Net Municipal Development . . Year Required ae . / Recoverable Capacity tobe Adjustment Due 2022-2031 Cost Contributions Capital Costs Recoverable Adjustments . . : Costs Net of Carried Forward to Service Level Attributable to $ % Costs . 95% 5% Adjustments Cap New Development GGG SG CG Beach Washroom 2023 |s_450,000| dS 450,000 |$ 379,800 $s 7o200f dS onoof | a BG OO SG OG CGO GO Outstanding Debt Principal for Shores Recreation Centre 2022-2031 [$§ 1490325| ----s«[$ 1,490,325 |[$ 1,257,834 $232491/ +*'(§ 2324 | | | | | a BG OO GG (GO GO Interest on Outstanding Debt Principal for Shores Recreation Centre 2022-2031 [§ 651,327| =------sd[ $651,327 [$ 549,720 $s 10i6o7| Ss--<idLS~Ssittov | --i('('( wCrCOOOO!O!OUdr.L.LULULULULULUdrL Cd a GG OO SG OG GOGO GO Grand Bend Community Centre 2027 [§ 10,000,000[$ 5,000,000 |$ 5,000,000 |$ 4,220,000 $7soooo[ dS anno f a GG GG GG GO GO GO | ReserveBalance tea fs ozeayf | Debt | Reserve Deficit | credits Total Estimated Capital Costs | $12,591,652 | $ 5,000,000 | $ 7,591,652 | $ 6,407,354 | $ 1,184,298] $ 163,641 | $ 1,020,656 $ 1,020,656 | $ 969,624 | $ 51,033 Appendix D-4 Table 1 Municipality of Lambton Shores Fire Capital Costs Included in the Development Charge Calculation Less Less Less DC Eligible Costs Grant: i isti Total i i el S, Benefit to Existing Total : otal Residential Non-Res. Share Subsidies & Development Total Development Post Period Development Share Increased Service Needs Attributable to Anticipated Development 2022- : Gross Project Development Net Municipal Development Capacity to be Costs Year Required "ue . . Recoverable . . 2031 Cost Contributions Capital Costs Recoverable Adjustments Costs Net of Carried Adjustment Attributable to $ % Costs . Forward Due to Service 74% 26% Adjustments New Level Cap Development a CC: FS GG Fire Master Servicing Plan 2027 [$s 7oo00| dS 70,000 | 5 35,000 $__3so00[ sd[S SS ssooof | a GO: SG GO New Fire Hall 2024 [$2,213,750] S$ 2,213,750|$ 1,771,000 $4az750[ [8 aazrsof | a GO: OU: SG GG a GS GG | ReserveBalance 10,93 gs aooiaf | Debts | ReserveDeficit [credits Total Estimated Capital Costs | $ 2,283,750 $ 2,283,750 | $ 1,806,000 | | $477,750 -§10,913 $488,663 | $488,663 $363,077 $125,586 Appendix D-5 Table 1 Municipality of Lambton Shores Transportation Capital Costs Included in the Development Charge Calculation Less: Less: Less: Total DC Eligible Costs Grants, Benefit to Existing Residential Non-Res. _ Total . Development Subsidies & Development Total Post Period Share Share . . .. . .. Development . Recoverable Increased Service Needs Attributable to Anticipated Development . Gross Project Development Net Municipal Development Capacity to be Year Required "ue : . Recoverable . Costs 2022-2031 Costs Contributions Capital Costs Recoverable Adjustments Carried . . Costs Net of Adjustment Attributable to $ % Costs " Forward : 74% 26% Adjustments Due to Service New Level Cap Development a CC GSC 6S 6 SG GO Enterprise Dr - upgrade to Pavement 2025 [$s 750000] sd S$ 750,000 | $ 150,000] 20% |s coooo0| ss '[s sooo | | CP a GS OSG 6 SG 6 SO GG New Vehicle - Truck 2023 |$80,000[ sd $80,000 $g0o00f dS soooof | a CG SI OO SG OS GG Roads & Related - Tandem w/plow 2027, [$300,000] dT $300,000 | $ 45,000 $255000[ dS 255o00 [| | po gg Roads & Related - GB Arterial Rd/Bridge 2023 [$s 9500000] | $9,500,000 | $ 5,700,000 $3,800,000] s[s3,s0no00f | CT a CG Sn OSG 6 SG 6 SG GO Roads & Related - GB Main St E Urbanization 2030 [$s 3750000] sd $3,750,000 | $ 1,875,000] 50% |$ 1,875,000] ss sd[$ag7sooo| | a GG SO GS GO 6 SG 6S GG Roads & Related - Klondyke Rd Upgrades 2030 [$s _ 1175000] sd S$ 4,175,000 | $ 293,750] 25% |s aei2so| sts pstzsof | a CG SO GG 6 SG 6 SO GG po gg a | ReserveBalance 339,981] zz99ayf | Debt | ReserveDeficit | Credits Total Estimated Capital Costs | $ 17,251,250 $ 17,251,250] $ 9,420,750 | | $ 7,830,500| $1,339,981 | $ 6,490,519 $ 6,490,519 | $4,822,455 | $1,668,063 Appendix D-6 Table 1 Municipality of Lambton Shores Storm Sewer Capital Costs Included in the Development Charge Calculation -- Less: Less Total Total = --<--- oats " m fee esidentia lon-Res. Guittione. Benefit to Existing Development Total Total Development Post Period Development Share Share . A a 5 . Development . Recoverable < Recoverable Increased Service Needs Attributable to Anticipated Development . Gross Project Development Net Capital Development Post Period Capacity to be Year Required "a: 7 Recoverable , Cost . Costs 2022-2031 Costs Contributions Costs Recoverable Adjustments Capacity . Carried . : Costs Net of Adjustment Adjustment Attributable to $ % Costs . . Forward : 74% 26% Adjustments Due to Service Due to Service New Level Cap Level Cap Development po pg so |__ Master ServingPlan 2022-2031 | $ 200000] tS 200,000] $ 100,000 | 50% is __s00,000f i$ t00,000| so. S$ tooooof | | po so a ee a J Capacity Carry Forward Pd so po ance so ps0 po cit so po so seme meme || tft ome) eas tunes) rome |_| amo | tome | | Appendix D-7 Table 1 Municipality of Lambton Shores Water Capital Costs Included in the Development Charge Calculation Less: Less: Less DC Eligible Costs Grants, Benefit to Existing Total Residential Subsidies & Development Total Total Development Post Period Development Share Non-Res. Share Increased Service Needs Attributable to Anticipated Development Year Required Gross Project Development Net Capital Development Recoverable Costs Capacityto be Recoverable Costs 2022-2041 Costs Contributions Costs Recoverable Adjustments Net of Carried Adjustment Due Attributable to $ % Costs Adjustments Forward to Service Level 74% 26% New Cap Development GG GC a a GG a GG SOO SG ns GG | Water MasterServingPlan CTS 2032 dT $250,000 | | $250,000 | $ 125,000 | 50% [$s 125000] [S$ azsooof | | a GG GG; GT: SO CGO |_Water System Debt-Principal 2022-2023 | $ 20217 | LS azoza7 | s TS azoaa7P Soa PO a GC GG: GS GGG |_Water System Debt- Interest 2022-2023 |S 33,270 |S 83270 | s TS 3 a70f zo GC GG GG GO GG | ReserveBalance azz ts gaat | Debt | ReserveDeficit | credits Cotsinaeecmicos Cd [fe mee [em | le me fem |p fs Appendix D-8 Table 1 Municipality of Lambton Shores Wastewater (Forest) Capital Costs Included in the Development Charges Calculation Less: Less: Less DC Eligible Grants, Subsidies Benefit to Existing Total : Total Residential ; : _ : Abatement Development Total Deve ennent [ras Pete Development Share Non-Res. Share Increased Service Needs Attributable to Anticipated Development 2022- . Gross Project os . Development Capacity to be Recoverable Costs 2041 Year Required Gare Goriailbeitinns Net Capital Costs Recoverable Adjustments Recoverable Costs Carried Adjustment Due Attributable to Net of A $ % Costs . Forward to Service Level 74% 26% New Adjustments Cap Development GO CO GG CO a GG GS SG ES OS | Wastewater MasterServingPlan T2032 | S000 | | S90 000| § 45,000] 50% [s asooof fs asooo | OP a GG GO GG OS | ReserveBalance Pg as00 fs tasooo)f | Debt |_ReserveDeficit [credits [ totsesimatescapratcons | fs t000 Ls [soon | asao0 | |e asano|s aso | ss ts Ts Ts | Appendix D-9 Table 1 Municipality of Lambton Shores Wastewater (Grand Bend) Capital Costs Included in the Development Charges Calculation Less: Less: Less DC Eligible i isti Total i i Grants, Subsidies Benefit to Existing Total ' ota Residential Development Total Post Period Development Share Non-Res. Share . 7 . + & Development Development Increased Service Needs Attributable to Anticipated Development 2022- . Gross Project ae . Development Capacity to be Recoverable Costs Year Required Contributions Net Capital Costs . Recoverable Costs . . 2041 Costs . Recoverable Adjustments Carried Adjustment Due Attributable to Net of . $ % Costs . Forward to Service Level 74% 26% New Adjustments Cap Development Ca GG SO: GOO: Wastewater Master Serving Plan 2032 $160000[ ------sd[«$ ~--st60,000| $ 80,000 $s 8o0o00[ dS soooof PT aC GG SO: GOO: EG 2025 $ 7,000,000 | $ 3,500,000] $ 3,500,000 | $ 1,750,000 $_17soo00] TS arsooo0f aC GG SO: GO: EG Wastewater - GB STP Expansion 2028 $ 67ai7s9| TS 6,741,759 $674a759| Sg 7aa7sof CG GS GO: aC GG SO; GOO: SG aC GG SO; GOO: SG aC GG SO; GOO: SG aC GG OG; GO: aC GG GO GG | ReserveBalance a3 zea fs tasagesyf | Debt | Reserve Deficit [credits Total Estimated Capital Costs | | $ 13,901,759 $ 3,500,000 $ 10,401,759 $ 1,830,000 | | $ 8,571,759| $ 439,868 $ 8,131,891 $ 8,131,891 $ 6,050,127 $ 2,081,764 Appendix E Cash Flow Analysis & Adjusted Charges Appendix E-1 Table 1 Municipality of Lambton Shores Outdoor Recreation Cash Analysis and Adjusted Charges RESIDENTIAL CASH FLOW Outdoor Recreation 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Opening Cash Balance $ 820,231 $ 892,619 $ 847,960 $ 380,278 $ 214,015 $ 144,029 $ (77,145) $ (13,426) $ 54,511 $ (72,043) Residential Population Growth in New Units 226 226 226 226 226 226 226 226 226 226 Receipts Residential Development Charge Receipts (Inflated) $ 50,865 $ 52,899 $ 55,015 $ 57,216 $ 59,504 $ 61,885 $ 64,360 $ 66,934 $ 69,612 $ 72,396 Disbursements 2022-2031 Development Charge Disbursements/Adjustments Uninflated $ - $ 114,000 $ 494,000 $ 204,060 $ 114,000 $ 231,990 $ - $ - $ 142,500 $ - Inflated $ - $ 118,560 $ 534,310 $ 229,540 $ 133,364 $ 282,251 $ - $ - $ 195,021 $ - Interest $ 21,523 $ 21,002 $ 11,613 $ 6,060 $ 3,873 $ (807) $ (641) $ 1,003 $ (1,145) $ (353) Closing Cash Balance $ 892,619 $ 847,960 $ 380,278 $ 214,015 $ 144,029 $ (77,145) $ (13,426) $ 54,511 $ (72,043) $ - 2022 Adjusted Residential Charge Per Capita $ 225.30 Appendix E-1 Table 2 Municipality of Lambton Shores Outdoor Recreation Cash Analysis and Adjusted Charges NON-RESIDENTIAL CASH FLOW Outdoor Recreation 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Opening Cash Balance $ 43,170 $ 46,980 $ 44,629 $ 20,015 $ 11,264 $ 7,580 $ (4,060) $ (707) $ 2,869 $ (3,792) Non-Residential Growth in Square Feet 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 Receipts Non-Residential Development Charge Receipts (Inflated) $ 2,677 $ 2,784 $ 2,896 $ 3,011 $ 3,132 $ 3,257 $ 3,387 $ 3,523 $ 3,664 $ 3,810 Disbursements 2022-2031 Development Charge Disbursements/Adjustments Uninflated $ - $ 6,000 $ 26,000 $ 10,740 $ 6,000 $ 12,210 $ - $ - $ 7,500 $ - Inflated $ - $ 6,240 $ 28,122 $ 12,081 $ 7,019 $ 14,855 $ - $ - $ 10,264 $ - Interest $ 1,133 $ 1,105 $ 611 $ 319 $ 204 $ (42) $ (34) $ 53 $ (60) $ (19) Closing Cash Balance $ 46,980 $ 44,629 $ 20,015 $ 11,264 $ 7,580 $ (4,060) $ (707) $ 2,869 $ (3,792) $ - 2022 Adjusted Non-Residential Charge Per Square Foot $ 0.46 Appendix E-2 Table 1 Municipality of Lambton Shores Indoor Recreation Cash Analysis and Adjusted Charges RESIDENTIAL CASH FLOW Indoor Recreation 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Opening Cash Balance $ 155,459 $ 226,959 $ 232,206 $ 311,141 $ 394975 $ 483,948 $ (341,263) $ (264,242) $ (181,874) $ (93,887) Residential Population Growth in New Units 226 226 226 226 226 226 226 226 226 226 Receipts Residential Development Charge Receipts (Inflated) $ 98,027 $ 101,948 $ 106,026 $ 110,267 $ 114,677 $ 119,264 $ 124,085 $ 128,996 $ 134,156 $ 139,522 Disbursements 2022-2031 Development Charge Disbursements/Adjustments Uninflated $ 31,739 $ 98,429 $ 31,739 $ 31,739 $ 31,739 $ 772,739 $ 31,739 $ 31,739 $ 31,739 $ 31,739 Inflated $ 31,739 $ 102,366 $ 34,329 $ 35,702 $ 37,130 $ 940,155 $ 40,160 $ 41,767 $ 43,437 $ 45,175 Interest $ 5,212 $ 5,666 $ 7,239 $ 9,270 $ 11,425 $ (4,319) $ (6,854) $ (4,861) $ (2,732) $ (460) Closing Cash Balance $ 226,959 $ 232,206 $ 311,141 $ 394,975 $ 483,948 $ (341,263) $ (264,242) $ (181,874) $ (93,887) $ - 2022 Adjusted Residential Charge Per Capita $ 434.20 Appendix E-2 Table 2 Municipality of Lambton Shores Indoor Recreation Cash Analysis and Adjusted Charges NON-RESIDENTIAL CASH FLOW Library 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Opening Cash Balance $ 8,182 $ 11,945 $ 12,221 $ 16,376 $ 20,788 $ 25,471 $ (17,961) $ (13,907) $ (9,572) $ (4,941) Non-Residential Growth in Square Feet 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 Receipts Non-Residential Development Charge Receipts (Inflated) $ 5,159 $ 5,366 $ 5,580 $ 5,804 $ 6,036 $ 6,277 $ 6,528 $ 6,789 $ 7,061 $ 7,343 Disbursements 2022-2031 Development Charge Disbursements/Adjustments Uninflated $ 1,670 $ 5,180 $ 1,670 $ 1,670 $ 1,670 $ 40,670 $ 1,670 $ 1,670 $ 1,670 $ 1,670 Inflated $ 1,670 $ 5,388 $ 1,807 $ 1,879 $ 1,954 $ 49,482 $ 2,114 $ 2,198 $ 2,286 $ 2,378 Interest $ 274 §$ 298 $ 381 $ 488 $ 601 $ (227) $ (361) $ (256) $ (144) $ (24) Closing Cash Balance $ 11,945 $ 12,221 $ 16,376 $ 20,788 $ 25,471 $ (17,961) $ (13,907) $ (9,572) $ (4,941) $ - 2022 Adjusted Non-Residential Charge Per Square Foot $ 0.88 Appendix E-3 Table 1 Municipality of Lambton Shores Fire Cash Analysis and Adjusted Charges RESIDENTIAL CASH FLOW Fire 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Opening Cash Balance $ (8,109) $ 27,465 $ 65,360 $ (257,233) $ (223,420) $ (187,152) $ (180,575) $ (139,821) $ (96,237) $ (49,680) Residential Population Growth in New Units 226 226 226 226 226 226 226 226 226 226 Receipts Residential Development Charge Receipts (Inflated) $ 35,075 $ 36,478 $ 37,937 $ 39,455 $ 41,033 $ 42,674 $ 44,381 $ 46,156 $ 48,003 $ 49,923 Disbursements 2022-2031 Development Charge Disbursements/Adjustments Uninflated $ - § - $ 328,963 $ - § - $ 26,005 $ - § - § - § - Inflated $ - § - $ 355,807 $ - § - $ 31,639 $ - § - § - § - Interest $ 499 $ 1,416 $ (4,723) $ (5,642) $ (4,765) $ (4,458) $ (3,627) $ (2,572) $ (1,446) $ (244) Closing Cash Balance $ 27,465 $ 65,360 $ (257,233) $ (223,420) $ (187,152) $ (180,575) $ (139,821) $ (96,237) $ (49,680) $ - 2022 Adjusted Residential Charge Per Capita $ 155.36 Appendix E-3 Table 2 Municipality of Lambton Shores Fire Cash Analysis and Adjusted Charges NON-RESIDENTIAL CASH FLOW Fire 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Opening Cash Balance $ (2,805) $ 9,500 $ 22,608 $ (88,976) $ (77,280) $ (64,735) $ (62,460) $ (48,363) $ (33,288) $ (17,184) Non-Residential Growth in Square Feet 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 Receipts Non-Residential Development Charge Receipts (Inflated) $ 12,132 $ 12,618 $ 13,122 $ 13,647 $ 14,193 $ 14,761 $ 15,351 $ 15,965 $ 16,604 $ 17,268 Disbursements 2022-2031 Development Charge Disbursements/Adjustments Uninflated $ - § - $ 113,787 $ - §$ - § 8,995 $ - § - § - § - Inflated $ - § - $ 123,072 $ - § - $ 10,944 $ - § - § - § - Interest $ 173 $ 490 $ (1,634) $ (1,951) $ (1,648) $ (1,542) $ (1,254) $ (890) $ (500) $ (84) Closing Cash Balance $ 9,500 $ 22,608 $ (88,976) $ (77,280) $ (64,735) $ (62,460) $ (48,363) $ (33,288) $ (17,184) $ - 2022 Adjusted Non-Residential Charge Per Square Foot $ 2.08 Appendix E-4 Table 1 Municipality of Lambton Shores Roads and Related Cash Analysis and Adjusted Charges RESIDENTIAL CASH FLOW. Roads and Related 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 Opening Cash Balance $ 995,606 $ 1,511,026 $ (901,166) $ (690,270) $ (671,714) $ (197,977) $ 94,348 $ 587,236 $ 1,092,446 $ (478,565) Residential Population Growth in New Units 226 226 226 226 226 226 226 226 226 226 Receipts Residential Development Charge Receipts (Inflated) $ 480,911 $ 480,911 $ 480,911 $ 480,911 $ 480,911 $ 480,911 $ 480,911 $ 480,911 $ 480,911 $ 480,911 Disbursements 2022-2031 Development Charge Disbursements/Adjustments Uninflated $ - $ 2,882,840 $ 252,063 $ 445,800 $ - $ 189,465 $ - § - $ 2,047,894 $ - Inflated $ - $ 2,882,840 $ 252,063 $ 445,800 $ - $ 189,465 $ - § - $ 2,047,894 $ - Interest $ 34,508 $ (10,263) $ (17,952) $ (16,555) $ (7,175) $ 879 $ 11,977 $ 24,299 $ (4,028) $ (2,346) Closing Cash Balance $ 1,511,026 $ (901,166) $ (690,270) $ (671,714) $ (197,977) $ 94,348 $ 587,236 $ 1,092,446 $ (478,565) $ - 2022 Adjusted Residential Charge Per Capita $ 2,130.14 Appendix E-4 Table 2 Municipality of Lambton Shores Roads and Related Cash Analysis and Adjusted Charges NON-RESIDENTIAL CASH FLOW Roads and Related 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 Opening Cash Balance $ 344,375 $ 522,656 $ (311,709) $ (238,761) $ (232,342) $ (68,479) $ 32,635 $ 203,122 $ 377,872 $ (165,533) Non-Residential Growth in Square Feet 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 Receipts Non-Residential Development Charge Receipts (Inflated) $ 166,345 $ 166,345 $ 166,345 $ 166,345 $ 166,345 $ 166,345 $ 166,345 $ 166,345 $ 166,345 $ 166,345 Disbursements 2022-2031 Development Charge Disbursements/Adjustments Uninflated $ - $ 997,160 $ 87,187 $ 154,200 $ - $ 65,535 $ - $ - $ 708,356 $ - Inflated $ - $ 997,160 $ 87,187 $ 154,200 $ - $ 65,535 $ - $ - $ 708,356 $ - Interest $ 11,936 $ (3,550) $ (6,210) $ (5,726) $ (2,482) $ 304 $ 4,148 $ 8,405 $ (1,393) $ (811) Closing Cash Balance $ 522,656 $ (311,709) $ (238,761) $ (232,342) $ (68,479) $ 32,635 $ 203,122 $ 377,872 $ (165,533) $ - 2022 Adjusted Non-Residential Charge Per Square Foot $ 28.47 Appendix E-5 Table 1 Municipality of Lambton Shores Storm Sewer Cash Analysis and Adjusted Charges RESIDENTIAL CASH FLOW Storm Sewer 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Opening Cash Balance $ - $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) Residential Population Growth in New Units 226 226 226 226 226 226 226 226 226 226 Receipts Residential Development Charge Receipts (Inflated) $ 7,440 $ 7,738 $ 8,047 $ 8,369 $ 8,704 $ 9,052 $ 9,414 $ 9,791 $ 10,182 $ 10,589 Disbursements 2022-2031 Development Charge Disbursements Uninflated $ 7,440 $ 7,440 $ 7,440 $ 7,440 $ 7,440 $ 7,440 $ 7,440 $ 7,440 $ 7,440 $ 7,440 Inflated $ 7,440 $ 7,738 $ 8,047 $ 8,369 $ 8,704 $ 9,052 $ 9,414 $ 9,791 $ 10,182 $ 10,589 Interest $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) Closing Cash Balance $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) 2022 Adjusted Residential Charge Per Capita $ 32.95 Appendix E-5 Table 2 Municipality of Lambton Shores Storm Sewer Cash Analysis and Adjusted Charges NON-RESIDENTIAL CASH FLOW Storm Sewer 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Opening Cash Balance $ - $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) Non-Residential Growth in Square Feet 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 5,843 Receipts Non-Residential Development Charge Receipts (Inflated) $ 2,560 $ 2,662 $ 2,769 $ 2,880 $ 2,995 $ 3,115 $ 3,239 $ 3,369 $ 3,504 $ 3,644 Disbursements 2022-2031 Development Charge Disbursements Uninflated $ 2,560 $ 2,560 $ 2,560 $ 2,560 $ 2,560 $ 2,560 $ 2,560 $ 2,560 $ 2,560 $ 2,560 Inflated $ 2,560 $ 2,662 $ 2,769 $ 2,880 $ 2,995 $ 3,115 $ 3,239 $ 3,369 $ 3,504 $ 3,644 Interest $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) Closing Cash Balance $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ - 2022 Adjusted Non-Residential Charge Per Square Foot $ 0.44 Appendix E-6 Table 1 Municipality of Lambton Shores Wastewater Cash Analysis and Adjusted Charges RESIDENTIAL CASH FLOW Wastewater 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 Opening Cash Balance $ 327,262 $ 626,414 $ 944,685 $1,283,016 $ 148,530 $ 492,638 $ 858,965 $ (5,224,997) $ (4,972,724) $ (4,698,828) Residential Population Growth in New Units 144 144 144 144 144 144 144 144 144 144 Receipts Residential Development Charge Receipts (Inflated) $ 285,266 $ 296,676 $ 308,543 $ 320,885 $ 333,721 $ 347,069 $ 360,952 $ 375,390 $ 390,406 $ 406,022 Disbursements 2022-2041 Development Charge Disbursements/Adjustments Uninflated $ - $ - $ - $ 1,302,000 $ - $ - $ 5,015,869 $ - $ - $ - Inflated $ - § - § - $1,464,573 $ - § - $ 6,346,674 $ - § - § - Interest $ 13,887 $ 21,594 $ 29,788 $ 9,202 $ 10,388 $ 19,257 $ (98,240) $ (123,117) $ (116,510) $ (109,350) Closing Cash Balance $ 626,414 $ 944,685 $ 1,283,016 $ 148,530 $ 492,638 $ 858,965 $ (5,224,997) $ (4,972,724) $ (4,698,828) $ (4,402,156) 2022 Adjusted Residential Charge Per Capita $ 1,974.30 RESIDENTIAL CASH FLOW Wastewater 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Opening Cash Balance $ (4,402,156) $ (4,171,368) $ (3,827,716) $ (3,457,555) $ (3,059,506) $ (2,632,126) $ (2,173,907) $ (1,683,271) $ (1,158,570) $ (598,080) Residential Population Growth in New Units 144 144 144 144 144 144 144 144 144 144 Receipts Residential Development Charge Receipts (Inflated) $ 422,263 $ 439,154 $ 456,720 $ 474,989 $ 493,988 $ 513,748 $ 534,297 $ 555,669 $ 577,896 $ 601,012 Disbursements 2022-2041 Development Charge Disbursements/Adjustments Uninflated $ 59,520 $ - § - § - § - §$ - §$ - = §$ - = §$ - = §$ - Inflated $ 88,104 $ - $ - $ - $ - $ - $ - $ - $ - $ - Interest $ (103,371) $ (95,501) $ (86,559) $ (76,939) $ (66,608) $ (55,528) $ (43,662) $ (30,968) $ (17,406) $ (2,932) Closing Cash Balance $ (4,171,368) $ (3,827,716) $ (3,457,555) $ (3,059,506) $ (2,632,126) $ (2,173,907) $ (1,683,271) $ (1,158,570) $ (598,080) $ - Appendix E-6 Table 2 Municipality of Lambton Shores Wastewater Services Cash Analysis and Adjusted Charges NON-RESIDENTIAL CASH FLOW Wastewater 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Opening Cash Balance $ 112,606 $ 215,540 $ 325,053 $ 441,468 $ 51,107 $ 169,510 $ 295,558 $ (1,797,849) $ (1,711,045) $ (1,616,801) Non-Residential Growth in Square Feet 3,740 3,740 3,740 3,740 3,740 3,740 3,740 3,740 3,740 3,740 Receipts Non-Residential Development Charge Receipts (Inflated) $ 98,156 $ 102,082 $ 106,165 $ 110,412 $ 114829 $ 119,422 $ 124,199 $ 129,167 $ 134,333 $ 139,707 Disbursements 2022-2041 Development Charge Disbursements/Adjustments Uninflated $ - § - § - $ 448,000 $ - § - $ 1,725,890 $ - § - § - Inflated $ - $ - $ - $ 503,939 $ - $ - $ 2,183,802 $ - $ - $ - Interest $ 4,778 $ 7,430 $ 10,250 $ 3,166 $ 3,574 $ 6,626 $ (33,803) $ (42,363) $ (40,089) $ (37,626) Closing Cash Balance $ 215,540 $ 325,053 $ 441,468 $ 51,107 $ 169,510 $ 295,558 $ (1,797,849) $ (1,711,045) $ (1,616,801) $ (1,514,720) 2022 Adjusted Non-Residential Charge Per Square Foot $ 26.25 NON-RESIDENTIAL CASH FLOW Wastewater 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Opening Cash Balance $ (1,514,720) $ (1,435,309) $ (1,317,063) $ (1,189,696) $ (1,052,733) $ (905,677) $ (748,010) $ (579,189) $ (398,647) $ (205,790) Non-Residential Growth in Square Feet 3,740 3,740 3,740 3,740 3,740 3,740 3,740 3,740 3,740 3,740 Receipts Non-Residential Development Charge Receipts (Inflated) $ 145,295 $ 151,107 $ 157,151 $ 163,437 $ 169,974 $ 176,773 $ 183,844 $ 191,198 $ 198,846 $ 206,800 Disbursements 2022-2041 Development Charge Disbursements/Adjustments Uninflated $ 20,480 $ - § - § - § - § - §$ - = §$ - = §$ - = §$ - Inflated $ 30,315 $ - § - § - § - § - §$ - = §$ - = §$ - = §$ - Interest $ (35,568) $ (32,861) $ (29,784) $ (26,474) $ (22,919) $ (19,106) $ (15,023) $ (10,656) $ (5,989) $ (1,009) Closing Cash Balance $ (1,435,309) $ (1,317,063) $ (1,189,696) $ (1,052,733) $ (905,677) $ (748,010) $ (579,189) $ (398,647) $ (205,790) $ 1 Appendix F Operating, Capital & Asset Management Cost Implications Appendix F Table 1 Municipality of Lambton Shores Long-Term Operating Cost Impacts Cummulative Net Operating Impacts Service 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Adminstration Growth-Related Studies $ 22,194 $ 44,387 S$ 66,581 $ 88,775 $ 110,968 $ 133,162 $ 155,356 $ 177,549 S$ 199,743 S$ 221,937] $ = 1,220,651 Outdoor Recreation $ 35,983 S$ 71,966 $ 107,949 $ 143,932 $ 179,916 $ 215,899 S$ 251,882 S$ 287,865 S$ 323,848 S$ 359,831] $ 1,979,071 Indoor Recreation $ 23,637 $ 47,274 S$ 70,911 $ 94,548 $ 118,185 $ 141,822 $ 165,460 $ 189,097 $ 212,734 $ 236,371] $ 1,300,039 Fire $ 17,462 $ 34,924 $ 52,385 S$ 69,847 $ 87,309 $ 104,771 $ 122,232 $ 139,694 $ 157,156 $ 174,618 | $ 960,397 Transportation $ 72,635 $ 145,270 $ 217,905 S$ 290,540 $ 363,175 S$ 435,811 $ 508,446 S$ 581,081 $ 653,716 S$ 726,351] $ 3,994,930 Storm Sewer $ 780 $ 1,560 $ 2,340 S$ 3,120 $ 3,899 S$ 4,679 $ 5,459 S$ 6,239 S$ 7,019 $ 7,799 | S$ 42,893 Water $ 26,576 S$ 53,153 $ 79,729 S$ 106,305 $ 132,882 $ 159,458 $ 186,035 $ 212,611 $ 239,187 S$ 265,764] $ 1,461,700 Wastewater $ 28,332 S$ 56,664 S$ 84,996 S$ 113,327. $ 141,659 S$ 169,991 $ 198,323 $ 226,655 S$ 254,987 S$ 283,319] S$ 1,558,253 Appendix F Table 2 Municipality of Lambton Shores Long-Term Capital Cost Implications Cummulative Net Capital Cost Impacts By Service 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 use Adminstration Growth-Related Studies S - S 20,000 $ - iS - iS - S - S - iS - iS - S - S 20,000 Outdoor Recreation $ - S$ 280,000 $ 680,000 $ 461,200 $ 280,000 $ 569,800 $ - S - S 850,000 S$ - S$ 3,121,000 Indoor Recreation $ 180,755 $ 560,555 S$ 180,755 $ 180,755 S$ 180,755 S$ 4,400,755 $ 180,755 $ 180,755 S$ 180,755 S$ 180,755] S$ 6,407,354 Fire $ - S$ - $1,771,000 $ - S - $ 35,000 $ - S - S - $ - S$ 1,806,000 Transportation $ - S$ 5,700,000 $ 1,357,000 $ 150,000 $ - $ 45,000 $ - S 2,168,750 $ - $ - S$ 9,420,750 Storm Sewer $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 | $ 100,000 Water Servcies S$ - § - § - § - §$ - $ - §$ - §$ - §$ - $ - 1$ - Wastewater Services S - S - iS - iS 1,750,000 $ - S - S - iS - iS - S - S 1,750,000 Appendix F Table 3 Municipality of Lambton Shores Long-Term Net Lifecycle Impacts Cummulative Net Lifecycle Impact Service 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Total Adminstration Growth-Related Studies $ - §$ - § - § - § - $ - § - $ - $ - $ - |$ - Outdoor Recreation S - S 10,266 $ 41,678 S$ 58,126 S$ 69,020 S$ 91,632 S$ 91,632 $ 91,632 $ 121,112 $ 121,112 | $ 696,210 Indoor Recreation S 7,829 S$ 32,594 S$ 40,739 $ 49,047 S$ 57,521 S$ 469,770 $ 478,587 S$ 487,580 $ 496,753 $ 506,109 | $ 2,626,529 Fire S - S - S 84,195 S 84,195 S 84,195 S$ 84,195 S$ 84,195 $ 84,195 $ 84,195 $ 84,195 | S$ 673,557 Transportation S - S 252,891 $ 297,295 $ 317,320 $ 317,320 $ 354,194 $ 354,194 $ 354,194 $ 499,382 S$ 499,382 | S 3,246,173 Storm Sewer $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Js - Water Servcies $ - $ - $ - § - §$ - §$ - § - $ - $ - $ - |$ - Wastewater Services (Total) S - S - S : S 271,553 $ 271,553 $ 271,553 $ 549,096 $ 549,096 $ 549,096 $ 549,096 | $ 3,011,040 Appendix G Proposed Development Charges By-Law DRAFT THE CORPORATION OF THE MUNICIPALITY OF LAMBTON SHORES BY-LAW NUMBER xx of 2022 BEING A BY-LAW FOR THE IMPOSITION OF DEVELOPMENT CHARGES WHEREAS the Municipality of Lambton Shores will experience growth through development and re-development; AND WHEREAS development and re-development require the provision of physical and social services by the Municipality of Lambton Shores; AND WHEREAS Council desires to ensure that the capital cost of meeting growth-related demands for, or burdens on, municipal services does not place an excessive financial burden on the Municipality of Lambton Shores or its existing taxpayers, while at the same time ensuring new taxpayers contribute no more than the net capital cost attributable to providing the current level of municipal services; AND WHEREAS subsection 2(1) of the Development Charges Act, 1997 c. 27 (hereinafter called "the Act") provides that the Council the Municipality of Lambton Shores may impose development charges against land to pay for increased capital costs required because of increased needs for services; AND WHEREAS the Council of the Corporation of the Municipality of Lambton Shores has given Notice on XXXX,XX,XX according to section 12 of the Development Charges Act, 1997, of its intention to pass a by-law under Section 2 of the said Act; AND WHEREAS the Council of the Municipality of Lambton Shores has heard all persons who applied to be heard no matter whether in objection to, or in support of, the development charge proposal at a public meeting held on XXXXXX,XX,XX AND WHEREAS the Council of the Municipality of Lambton Shores had before it a report entitled Municipality of Lambton Shores 2022 Development Charges Background Study dated XXXX.XX.XX prepared by DFA Infrastructure International Inc. wherein it is indicated that the development of any land within the Municipality will increase the need for services as defined herein; AND WHEREAS the Council of the Municipality of Lambton Shores on XXXXXX,XX,XX approved the applicable Development Charge Background Study, inclusive of the capital forecast therein, in which certain recommendations were made relating to the establishment of a development charge policy for the Municipality of Lambton Shores pursuant to the Development Charges Act, 1997; AND WHEREAS the Council of the Municipality of Lambton Shores on XXXXX,XX,XXXX, determined that no additional public meeting was required to be held as part of the approval 1 DRAFT process. THEREFORE the Council of the Municipality of Lambton Shores enacts as follows: 1. INTERPRETATION 1.1. In this by-law, the following items shall have corresponding meanings: "Act" means the Development Charges Act, 1997, c. 27, as amended, or any successor thereof; "agricultural processing establishment" shall mean use of land and/or buildings or structures for the processing of products derived from agricultural uses, as defined in this By-law. These shall include such products as seed, grain, feed and forage processing, storage and transport, fruit and vegetable storage and treatment, livestock and poultry assembly, sales and transport, a cheese factory, an egg grading station, a saw mill, an abattoir and a dead stock removal facility; "apartment unit" means any dwelling unit within a multiple dwelling containing more than four dwelling units where the units are connected by an interior corridor, within a building designed or used for non-residential use, or within or ancillary to a building designed or used as a single detached dwelling, semi-detached dwelling, row house dwelling, or other dwelling unit; "bedroom" means a habitable room which can be used as sleeping quarters, but does not include a bathroom, living room, dining room or kitchen; "board of education" has the same meaning as set out in the Education Act, R.S.O. 1990, Chap. E.2, as amended, or any successor thereof; "bona fide farm uses" means the proposed development will qualify as a farm business operating with a valid Farm Business Registration Number issued by the Ontario Ministry of Agriculture, Food and Rural Affairs and be assessed in the Farmland Realty Tax Class by the Ontario Property Assessment Corporation; "Building Code Act" means the Building Code Act, S.O. 1992, as amended, or any successor thereof; "capital cost" means costs incurred or proposed to be incurred by the municipality or a local board thereof directly or by others on behalf of and as authorized by the municipality or local board: (a) to acquire land or an interest in land, including a leasehold interest; (b) to improve land; (c) to acquire, lease, construct or improve buildings and structures; (d) to acquire, construct or improve facilities including; 2 DRAFT (i) furniture and equipment other than computer equipment, (ii) material acquired for circulation, reference or information purposes by a library board as defined in the Public Libraries Act, R.S.O. 1990, Chap. P.44, as amended, or any successor thereof; and (iii) rolling stock with an estimated useful life of seven years or more. (e) to undertake studies in connection with any services designated in this By-law within or outside the municipality, (f) interest on borrowing for those expenditures under clauses (a) to (e) above that are growth-related; "commercial" means any use of land, structures or buildings for the purposes of buying or selling commodities and services, but does not include industrial or agricultural uses, but does include hotels, motels, motor inns and boarding, lodging and rooming houses; for certainty also includes greenhouse -- commercial; "Council" means the Council of the municipality; "development" means the construction, erection or placing of one or more buildings or structures on land or the making of an addition or alteration to a building or structure that the effect of increasing the size of usability thereof, and includes redevelopment; "development charge" means a charge imposed pursuant to this By-law; "dwelling unit" means any part of a building or structure used, designated or intended to be used as a domestic establishment in which one or more persons may sleep and are provided with culinary and sanitary facilities for their exclusive use; "existing" means the number, use and size that existed as of the date this by-Law was passed; "greenhouse - commercial" means a building or structure used for the growing of flowers, plants, shrubs, trees and similar vegetation which are not necessarily transplanted outdoors on the same lot containing such a building or structure, but are sold directly from such lot at wholesale or retail; "greenhouse - farm large scale" means an agricultural use in which the predominant economic activity involves the growing of plant materials in large scale greenhouses for subsequent replanting or sale but shall not include retail sale from the property; "gross floor area" means: (a) in the case of a residential building or structure, the total area of all floors above grade of a dwelling unit measured between the outside surfaces of exterior walls or between the outside surfaces of exterior walls and the centre line of party walls dividing the dwelling unit from any other dwelling unit or other portion of a building; and 3 DRAFT (b) in the case of a non-residential building or structure, or in the case of a mixed- use building or structure in respect of the non-residential portion thereof, the total area of all building floors above or below grade measured between the outside surfaces of the exterior walls, or between the outside surfaces of exterior walls and the centre line of party walls dividing a non-residential use and a residential use, except for: (i) a room or enclosed area within the building or structure above or below that is used exclusively for the accommodation of heating, cooling, ventilating, electrical, mechanical or telecommunications equipment that service the building; (ii) loading facilities above or below grade; and (iii) | a part of the building or structure below grade that is used for the parking of motor vehicles or for storage or other accessory use. "industrial" means lands, buildings or structures used or designed or intended for use for manufacturing, processing, fabricating or assembly of raw goods, warehousing or bulk storage of goods, and includes office uses and the sale of commodities to the general public where such uses are accessory to an industrial use, but does not include the sale of commodities to the general public through a warehousing club; "institutional" means land, buildings, structures or any part thereof used by any organization, group or association for promotion of charitable, educational or benevolent objectives and not for profit or gain; "Local Board" means a school board, public utility, commission, transportation commission, public library board, board of park management, local board of health, board of commissioners of police, planning board, or any other board, commission, committee, body or local authority established or exercising any power or authority under any general or special Act with respect to any of the affairs or purposes, including school purposes, of the Municipality of Lambton Shores or any part or parts thereof; "local services" means those services, facilities or things which are under the jurisdiction of the Municipality and are related to a plan of subdivision or within the area to which the plan relates in respect of the lands under Sections 41, 51 or 53 of the Planning Act, R.S.O. 1990, Chap. P. 13, as amended, or any successor thereof; "multiple dwellings" means all dwelling units other than single-detached, semi- detached and apartment unit dwellings; "Municipality" means the Corporation of the Municipality of Lambton Shores; "municipality" means the area within the geographic limits of the Municipality of Lambton Shores; "non-profit housing development" means the development of a building or structure 4 DRAFT intended for use as a residential premises and developed by, (a) acorporation to which the Not-for-Profit Corporations Act, 2010 applies, that is in good standing under that Act and whose primary object is to provide housing, (b) a corporation 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) a non-profit housing co-operative that is in good standing under the Co- operative Corporations Act. "non-residential use" means a building or structure of any kind whatsoever used, designed or intended to be used for other than a residential use; "Official Plan" means the Official Plan adopted for the Municipality, as amended and approved; "owner" means the owner of land or a person who has made application for an approval for the development of land upon which a development charge is imposed; "place of worship" means that part of a building or structure that is exempt from taxation as a place of worship under the Assessment Act, R.S.O. 1990, Chap. A.31, as amended, or any successor thereof; "rate" means the base rate of interest as determined under Section 26.3 of the Act plus one percent; "regulation" means any regulation made pursuant to the Act; "Residential Dwelling" means a building, occupied or capable of being occupied as a home, residence or sleeping place by one or more persons, containing one or more Dwelling Units but not including motels, hotels, tents, truck campers, tourist trailers, mobile camper trailers or boarding, lodging or rooming houses; "residential use" means the use of a building or structure or portion thereof for one or more Dwelling Units. This also includes a Dwelling Unit on land that is used for an Agricultural Use; "row dwelling" means a building containing three or more attached dwelling units in a single row, each of which dwelling units has an independent entrance from the outside and is vertically separated from any abutting dwelling unit; "semi-detached dwelling" means a building divided vertically into two dwelling units each of which has a separate entrance and access to grade; "service" means a service designated in Schedule "A" to this By-law, and "services" 5 DRAFT shall have a corresponding meaning; "servicing agreement" means an agreement between a landowner and the Municipality relative to the provision of municipal services to specified land within the municipality and/ or the landowner's assurances relative to affordable, attainable residential units as described under Section 4.1 of the Act; "single detached dwelling unit" means a residential building consisting of one dwelling unit and not attached to another structure; "wind turbine" means a part of a system that converts energy into electricity, and consists of a wind turbine, a tower and associated control or conversion electronics. A wind turbine and energy system may be connected to the electricity grid in circuits at a substation to provide electricity off-site for sale to an electrical utility or other intermediaries; and "Zoning By-Law" means the Zoning By-Law of the Municipality of Lambton Shores, or any successor thereof passed pursuant to Section 34 of the Planning Act, S.O. 1998. 2. DESIGNATION OF SERVICES 2.1.The categories of services for which development charges are imposed under this By-law are as follows: (a) Outdoor Recreation (b) Indoor Recreation (c) Fire (d) Transportation (e) Storm Sewer (f) Wastewater 2.2.The components of the services designated in Subsection 2.1 are described in Schedule "A". 3. APPLICATION OF BY-LAW RULES Development charges shall be payable in the amounts set out in this By-law where: (a) the lands are located in the area described in Subsections 3.1 and 3.2; and (b) the development of the lands requires any of the approvals set out in Paragraph 3.4(a). Area to Which By-law Applies 6 DRAFT 3.1.Subject to Subsection 3.3, this By-law applies to all lands in the Municipality of Lambton Shores whether or not the land or use thereof is exempt from taxation under s. 13 of the Assessment Act. 3.2.Subject to Subsection 3.3, the municipal wide services provided on Schedule B to this by-law will be imposed individually on development. Wastewater charges will be imposed within the wastewater service areas as shown in Schedules C-1. 3.3.Notwithstanding Subsection 3.2 above, this by-law shall not apply to lands that are owned by and used for the purposes of: (a) the Municipality or a local board thereof; (b) aboard of education; (c) non-profit housing; or (d) The Corporation of the County of Lambton or local board thereof. Approvals for Development 3.4.(a) Development charges shall be imposed on all lands, buildings or structures that are developed for residential or non-residential uses if the development requires: (i) the passing of a Zoning by-law or of an amendment to a Zoning by-law under section 34 of the Planning Act; (ii) the approval of a minor variance under section 45 of the Planning Act, (iii) | aconveyance of land to which a by-law passed under subsection 50(7) of the Planning Act applies; (iv) | the approval of a plan of subdivision under section 51 of the Planning Act; (v) a consent under section 53 of the Planning Act; (vi) | the approval of a description under section 50 of the Condominium Act, R.S.O. 1998, as amended, or any successor thereof; or (vii) the issuing of a permit under the Building Code Act 1992 in relation to a building or structure. (bo) No more than one development charge for each service designated in Subsection 2.1 shall be imposed upon any lands, buildings or structures to which this By-law applies even though two or more of the actions described in Paragraph 3.4(a) are required before the lands, buildings or structures can be developed. (c) Despite Paragraph 3.4(b), if two or more of the actions described in Paragraph 3.4(a) occur at different times, additional development charges shall be imposed if the subsequent action has the effect or increasing the need for services. 7 DRAFT Exemptions 3.5.Notwithstanding the provisions of this By-law, development charges shall not be imposed with respect to an enlargement of an existing dwelling unit. 3.6. Notwithstanding the provisions of this By-law, the creation of the greater of the following in an existing rental residential building, which contains four or more residential units, shall be exempt from development charges: a) One residential unit. b) 1% of the existing residential units. 3.7.Notwithstanding the provisions of this By-law, the creation of any of the following in an existing residential building shall be exempt from development charges: a) Asecond residential unit in an existing detached house, semi-detached house or rowhouse on a parcel of land on which residential use, other than ancillary residential use, is permitted, if all buildings and structures ancillary to the existing detached house, semi-detached house or rowhouse cumulatively contain no more than one residential unit. b) A third residential unit in an existing detached house, semi-detached house or rowhouse on a parcel of land on which residential use, other than ancillary residential use, is permitted, if no building or structure ancillary to the existing detached house, semi-detached house or rowhouse contains any residential units. c) One residential unit in a building or structure ancillary to an existing detached house, semi-detached house or rowhouse on a parcel of urban residential land, if the existing detached house, semi-detached house or rowhouse contains no more than two residential units and no other building or structure ancillary to the existing detached house, semi-detached house or rowhouse contains any residential units. 3.8. Notwithstanding the provisions of this By-law, the creation of any of the following in a new residential building shall be exempt from development charges: a) Asecond residential unit in a new detached house, semi-detached house or 8 DRAFT rowhouse on a parcel of land on which residential use, other than ancillary residential use, is permitted, if all buildings and structures ancillary to the new detached house, semi-detached house or rowhouse cumulatively will contain no more than one residential unit. b) A third residential unit in a new detached house, semi-detached house or rowhouse on a parcel of land on which residential use, other than ancillary residential use, is permitted, if no building or structure ancillary to the new detached house, semi-detached house or rowhouse contains any residential units. c) One residential unit in a building or structure ancillary to a new detached house, semi-detached house or rowhouse on a parcel of urban residential land, if the new detached house, semi-detached house or rowhouse contains no more than two residential units and no other building or structure ancillary to the new detached house, semi-detached house or rowhouse contains any residential units. 3.9.Exemption for Industrial Development (a) Notwithstanding any other provision of this by-Law, no development charge is payable with respect to an enlargement of the gross floor area of an existing industrial where the gross floor area is enlarged by 50 percent or less. (b) Ifthe gross floor area of an existing industrial building is enlarged by greater than 50 percent, the amount of the development charge payable in respect of the enlargement is the amount of the development charge that would otherwise be payable multiplied by the fraction as determined as follows: (i) determine the amount by which the enlargement exceeds 50 percent of the gross floor area before the enlargement; and (ii) divide the amount determined under Subparagraph (i) by the amount of the enlargement. (c) For the purpose of Subsection 3.9 herein, "existing industrial building" is used as defined in the Regulations made pursuant to the Act. 3.10. Other Exemptions: Notwithstanding the provision of this by-law, development charges shall not be imposed with respect to: (a) | Lands, buildings or structures used or to be used for a place of worship or for the purposes of a cemetery or burial ground exempt from taxation under the 9 DRAFT Assessment Act; (b) A public hospital receiving aid under the Public Hospitals Act, R.S.O. 1990, Chap.P.40, as amended, or any successor thereof; (c) The development of non-residential farm buildings constructed for bona fide farm uses, which qualify as a farm business, being that which operates with a valid Farm Business Registration Number and is assessed in the Farmland Realty Tax Class; (d) The lands used by a University or College, where such lands are used for university/college or university/college related purposes; (e) A temporary building or structure which is constructed, erected or placed on land for a continuous period of time not exceeding one (1) year; (f) | A building or structure or part thereof which is naturally and normally incidental to or subordinate in purpose or both, and exclusively devoted to a residential use, building or structure; (g) Any lots where the developing landowner has paid the water or wastewater development charge or a charge under by-law 64 of 2002, or a similar by-law for one of the former communities, will not pay the development charge for that service; (h) Greenhouse - farm large scale buildings are exempt from the charges for all services; (i) For Greenhouse - commercial buildings, the area accessible to the public will be subject to the Commercial/Institutional charge whereas all other building areas are exempt from the charges; and (j) For Affordable and Attainable Residential Units as described in Section 4.1 of the Act. These exemptions would take effect on the date Section 4.1 of the Act becomes effective for the duration it remains in force. Amount of Charges -- Residential 3.11. The development charges set out in Schedule "B" to this By-law shall: (a) be imposed on residential uses of lands, buildings or structures, including a dwelling unit accessory to a non-residential use and, in the case of a mixed- use building or structure, on the residential uses in the mixed-use building or structure, according to the type of residential unit, and calculated with respect to each of the services according to the type of residential use. Amount of Charges - Non-Residential 3.12. The development charges set out in Schedule "B" to this By-law shall: (a) be imposed on non-residential uses of lands, buildings or structures, and, in 10 DRAFT the case of a mixed-use building or structure, on the non-residential uses in the mixed-use building or structure, and calculated with respect to each of the services according to the total floor area of the non-residential use. Reduction of Development Charges for Redevelopment 3.13. Despite any other provisions of this By-law, where, as a result of the redevelopment of land, a building or structure existing on the same land within 5 years prior to the date of payment of development charges in regard to such redevelopment was, or is to be demolished, in whole or in part, or converted from one principal use to another principal use on the same land, in order to facilitate the redevelopment, the development charges otherwise payable with respect to such redevelopment shall be reduced by the following amounts: (a) in the case of a residential building or structure, or in the case of a mixed-use building or structure, the residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable development charge under Subsection 3.11 by the number, according to type, of dwelling units that have been or will be demolished or converted to another principal use; and (b) in the case of a non-residential building or structure, or in the case of a mixed- use building or structure, the non-residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable development charges under Subsection 3.12, by the gross floor area that has been or will be demolished or converted to another principal use; provided that such amounts shall not exceed, in total, the amount of the Development Charges otherwise payable with respect to the redevelopment. Discount, rental housing development 3.14. Despite any other provisions of this By-law, In the case of rental housing development, the amount determined under subsection (1) shall be reduced in accordance with the following rules: a) A development charge for a residential unit intended for use as a rented residential premises with three or more bedrooms shall be reduced by 25 per cent. b) A development charge for a residential unit intended for use as a rented residential premises with two bedrooms shall be reduced by 20 per cent. c) A development charge for a residential unit intended for use as a rented residential premises not referred to in paragraph 1 or 2 shall be reduced by 15 per cent. 11 DRAFT Time of Payment of Development Charge 3.15. Development charges imposed under this By-Law are calculated, payable, and collected upon issuance of a building permit for the development. 3.16. Despite Subsection 3.15, 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. 4. PAYMENT BY SERVICES 4.1.Despite the payment required under Subsections 3.11 and 3.12, Council may, by agreement, give a credit towards a development charge in exchange for work that relates to a service to which a development charge relates under this By-law. 4.2.Despite the payment required under Subsections 3.11 and 3.12, the charge imposed under this by-law shall be no greater than the charge as calculated in accordance to the rules as detailed in Section 5 (6) of the Act, for the duration it remains in force. 5. INDEXING 5.1.Development charges imposed pursuant to this By-law may be adjusted annually, without amendment to this By-law, commencing on the 1° of January 2024 and each year thereafter, in accordance with the prescribed index in the Act. 6. CONFLICTS 6.1.Where the Municipality and an owner or former owner have entered into an agreement with respect to land within the area to which this By-law applies, and a conflict exists between the provisions of this By-Law and such agreement, the provisions of the agreement shall prevail to the extent that there is a conflict. 6.2.Notwithstanding Subsection 6.1, where a development which is the subject of an agreement to which Subsection 6.1 applies, is subsequently the subject of one or more of the actions described in Paragraph 3.4(a), an additional development charge in respect of the development permitted by the action shall be calculated, payable and collected in accordance with the provisions of this By-Law if the development has the effect of increasing the need for services, unless such agreement provides otherwise. 12 DRAFT 7. SCHEDULES 7.1.The following schedules shall form part of this By-Law: Schedule "A" - Components of Services Designated in section 2.1 Schedule "B" - Residential and Non-Residential Development Charges Schedules "C-1" - Wastewater Development Charge Service Areas 8. SEVERABILITY 8.1.If, for any reason, any provision of this By-law is held to be invalid, it is hereby declared to be the intention of Council that all the remainder of this By-Law shall continue in full force and effect until repealed, re-enacted, amended or modified. 9. DATE BY-LAW _IN FORCE 9.1. This By-Law shall come into effect at XXXXXXX.XX.XXXX. 10. DATE BY-LAW EXPIRES 10.1. This By-Law will expire at 11:59 PM on XXXXXX,XX,XXXX unless it is repealed by Council at an earlier date. 11.EXISTING AND AMENDING BY-LAW REPEALED 11.1. This By-law hereby repeals By-law Number 01 of 2018. 12. DEEMED AMENDMENTS OF BY-LAW 12.1. This By-law shall be deemed to be amended to be consistent with sections of, or regulations made under, the More Homes Built Faster Act, 2022 as and when they come into force or if any section or provision or regulation is repealed or revoked. READ A FIRST, SECOND AND THIRD TIME, AND FINALLY PASSED this XX" day of XXXXXXXXX, XX. MAYOR -- XXXX XXXXX CLERK -- XXXXXX,XXXX 13 DRAFT SCHEDULE "A" TO THE BY-LAW COMPONENTS OF SERVICES DESIGNATED IN SUBSECTION 2.1 Outdoor Recreation e Parkland development e Parkland amenities e Park trails Indoor Recreation e Recreation facilities Fire e Vehicles and Equipment e Facilities e Land Transportation e Roads, sidewalks, streetlights, traffic controls e Bridges, culverts e Vehicles and equipment e Facilities Storm Sewer e Growth-related studies Wastewater e Treatment and Collection 14 SCHEDULE "B" TO THE BY-LAW RESIDENTIAL AND NON-RESIDENTIAL DEVELOPMENT CHARGES- Effective January XX, 2023 Residential Charge (By Dwelling Type) Non-Residential Charge Commercial Single Apartment Apartment Wind mer / industrial Units - One | Units- Two | Other . Institutional 2 Detached / . Turbine (per 2 | (per metre ; Bedroom or or More Multiples . (per metre Semi-Detached turbine) of GFA) Less Bedrooms of GFA) Municipal Wide Services Outdoor Recreation S 512.18 | $ 272.61 | $ 362.73 |S 429.64] 5S - S 0.46 |S 0.46 Indoor Recreation S 987.07 | S 525.38 | S 699.06} S 828.00] S$ - S 0.88 | $ 0.88 Fire S 353.19 | S 187.99 | $ 250.13 |S 296.27] S 353.19 | S 2.08 | S 2.08 Transportation S 4,842.50 | S 2,577.47 | S 3,429.52 |S 4,062.12]S 4,842.50] 5 28.47 | S 28.47 Storm Sewer S 74.92 | S 39.88 | S 53.06 | S 39.88 | S 74.92 |S 0.44 |S 0.44 Sub-total Municipal Wide Services Wastewater Services Wastewater (Grand Bend) S 4,488.22 | S 2,388.90 | S 3,178.62 | S 3,764.94] S - S 26.25 | S 26.25 Grand AE BendA"< outnco Y A Pines A NO LI 0 05 1 2 Beach PRY \ es Girines Merrywoods j& Kilometers on may | Vy Woods' Grand Bend Ke ta, Facility ph Van ~ e : f i) oe & WAS / SF -- ky *S [NN 'i Go" BR his <a \ore \_b MO Port y \, S \ % ' \ y . = C \ Northville \e. we ~ Area 6 poe ; / 4 | yes" . " > Pe Pe fe wt \ SCHEDULE C-1 GRAND BEND DEVELOPMENT CHARGE WASTEWATER SERVICE AREA