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Report
Prepared by Hemson for the City of Orillia
Development Charges
Background Study
October 31st, 2023
1000 - 30 St. Patrick Street, Toronto, ON M5T 3A3
416 593 5090 | [email protected] | www.hemson.com
Contents
Executive Summary
1
1.
Introduction
9
2.
A City-Wide Methodology Aligns Development-Related Costs
and Benefits
12
A.
City-Wide Development Charges are Calculated
12
B.
Key Steps in Determining Development Charges for Future
Development-Related Projects
14
3.
Development Forecast
20
A.
Residential Growth Forecast
20
B.
Non-Residential Growth Forecast
21
4.
Summary of Historic Capital Service Levels
23
5.
The Development-Related Capital Program
26
A.
A Development-Related Capital Program is Provided for
Council's Approval
26
B.
The Development-Related Capital Program for General
Services
27
C.
Development-Related Capital Program for Engineered
Services
30
6.
Development Charges are Calculated in Accordance with the
DCA
34
A.
Unadjusted Development Charge Calculation for General
Services
34
B.
Unadjusted Development Charge Calculation for Engineered
Services
37
C.
Adjusted Residential and Non-Residential Development
Charges
39
D.
Comparison of 2022 Newly Calculated Development Charges
With Charges Currently In Force in Orillia
42
7.
Long-Term Capital and Operating Costs
45
A.
Net Operating Costs for the City's Services Estimated to
Increase over the Forecast Period
45
B.
Long-Term Capital Financing from Non-Development Charge
Sources Totals $177.16 Million
45
8.
Asset Management Plan
48
A.
Annual Capital Provisions will Reach $8.46 Million by 2031
48
9.
Development Charges Administration
51
A.
Development Charge Administration
51
B.
Consideration for Area-Related Services
51
C.
Local Service Definitions
52
D.
Changes Arising From the More Homes Built Faster Act Bill 23 55
List of Appendices
Appendix A:
Development Forecast
59
Appendix B:
General Services Technical Appendix
80
Appendix B.1:
Library Services
86
Appendix B.2:
Fire Services
95
Appendix B.3:
Indoor Recreation
105
Appendix B.4:
Park Development, Facilities, and Fleet
112
Appendix B.5:
Services Related to a Highway: Public Works
129
Appendix B.6:
Transit
142
Appendix B.7:
Waste Diversion Services
149
Appendix B.8:
Paramedic Services
156
Appendix B.9:
Long Term Care
169
Appendix C:
Engineering Infrastructure Technical Appendix
177
Appendix C.1
Services Related to a Highway: Roads & Related 179
Appendix C.2
Wastewater
188
Appendix C.3
Water
196
Appendix C.4
Stormwater
204
Appendix D:
Reserve Fund Balances
213
Appendix E:
Cost of Growth Analysis
216
Appendix F:
By-law
225
Executive Summary | 1
Executive Summary
Hemson Consulting Ltd. was retained by the City of Orillia to complete a
Development Charges (DC) Background Study. This Background Study
provides the basis and background to update the City's development
charges to accurately reflect the servicing needs of new development in the
City.
A.
Study Consistent with Development Charges Legislation
-
The City of Orillia 2022 Development Charges Background Study is
presented as part of the process to lead to the approval of a new DC by-
law in compliance with the DCA. The study is prepared in accordance
with the DCA and associated regulations, including amendments that
came into force through the More Homes, More Choice Act, the COVID-
19 Economic Recovery Act, and the More Homes Built Faster Act (Bill
23).
-
The City needs to continue implementing development charges to help
fund capital projects related to development throughout Orillia so that
development continues to be serviced in a fiscally responsible manner.
The calculated changes to the development charges rates are required in
order to reflect the revised costs associated with the infrastructure
requirements.
-
The DCA and O. Reg. 82/98 require that a Development Charges
Background Study be prepared in which development charges are
determined with reference to:
-
A forecast of the amount, type and location of residential and non-
residential development anticipated in the City;
-
The average capital service levels provided in the City over the ten year
period immediately preceding the preparation of the background study;
Executive Summary | 2
-
A review of future capital projects, including an analysis of gross
expenditures, funding sources, and net expenditures incurred or to be
incurred by the City to provide for the expected development,
including the determination of the DC eligible and non-DC-eligible
components of the capital projects; and
-
This report identifies the development-related capital costs which are
attributable to development that is forecast to occur in the City. The
costs are apportioned to types of development (residential, non-
residential) in a manner that reflects the increase in the need for each
service attributable to each type of development.
B.
All Services with Development-Related Costs Included in
the Analysis
-
The following services have been included in the development charge
analysis:
-
Library
-
Fire Protection
-
Indoor Recreation
-
Parks
-
Transit
-
Waste Diversion
-
Paramedic Services
-
Long Term Care
-
Service-Related to a Highway
-
Public Works Buildings & Fleet
-
Roads and Related
-
Wastewater
-
Water Services
-
Storm Water Management
-
Development charges for all services are calculated on a City-wide basis.
Executive Summary | 3
C.
Development Forecast
-
The development forecast is based on the recent 2021 and 2016
Censuses and Orillia's 2020 Land Needs Assessment.
-
The capital infrastructure planning period for general services and roads
is based on a ten-year planning horizon 2022 to 2031. The planning
period for the engineered services (save for roads) is from 2022 to 2041.
-
The City is forecast to add approximately 2,740 new households in the
ten-year planning period from 2022 to 2031. This household estimate can
accommodate 6,266 persons. The planning period for the engineered
services will see an addition of 5,250 households which can
accommodate population growth of 11,650 persons.
-
The employment forecast for the City is forecast to add approximately
2,310 (along with an additional 110 work from home/no fixed address
employees) employees in the ten-year planning period. This results in
the addition of 144,650 square metres of new non-residential building
space from 2022 to 2031. For the long-term planning period,
approximately 4,641 employees will be accommodated in 287,800 square
metres of new non-residential building space.
-
The following is a summary of the projected growth for the City:
Executive Summary | 4
Summary of Residential and Non-Residential Development Forecast
D.
The City has an Extensive Development-Related Capital
Program for the Provision of Eligible Services
-
Municipal staff, in collaboration with Hemson Consulting, have developed
a development-related capital program setting out projects that are
required to service the anticipated development.
-
The development-related capital programs are based on a ten-year
planning period from 2022 to 2031 for the general services and Services
Related to a Highway and the long-term planning period 2022 to 2041 for
the other engineered services.
2021
Estimate
Residential
Occupied Dwellings
14,480
2,740
17,220
5,250
19,730
Population
Census Population
35,320
5,340
40,660
9,870
45,190
Population Growth In New Dwelling Units
6,266
11,650
Non-Residential
Total Employment
18,650
2,310
20,960
4,640
23,290
Population-Related
9,440
1,760
11,200
3,410
12,850
Employment Land
6,590
440
7,030
880
7,470
Major Office
2,620
110
2,730
350
2,970
Non-Residential Building Space (sq.m.)
144,650
287,800
Growth
Total at
2031
Growth
Total at
2041
Growth Forecast
General Services and
Roads Planning Period
2022 - 2031
Engineered Services
Planning Period
2022 - 2041
Executive Summary | 5
General Services
-
The gross cost of the City's development-related capital program for
general services amounts to $361.32 million and provides for a wide
range of infrastructure additions. Of the $361.32 million, approximately
$32.39 million has been identified as eligible for recovery through
development charges over the 2022-2031 planning period.
-
In total, approximately $191.12 million has been identified as subsidies or
grants that the City will anticipate receiving to fund development-related
projects.
-
Non-development charges funding for replacement portions of the
capital program and for portions of development-related capital projects
that benefit existing development have been identified. Replacement or
benefit to existing shares amount to $104.06 million.
-
A share of the capital program is for portions of projects that relate to
development in the post-2031 period (which will be considered for
recovery in future development charges studies subject to service level
considerations). In total, about $31.40 million falls within this definition.
-
Available DC reserve funds, in the amount of $554,600 have been
identified in each capital program to fund development-related
infrastructure.
-
Details regarding the capital programs for general services are provided
in Appendix B of this report.
Engineered Services
-
The total gross cost for engineered services is $244.13 million. This
provides for various projects for roads and related, sanitary sewerage,
waterworks, and storm water management services.
Executive Summary | 6
-
In total, $18.37 million has been identified as other funding that the City
will utilize to fund the capital program.
-
A share of the engineering capital program has been deemed to benefit
the existing community. This share totals to approximately $73.10 million
and has been netted off of the total gross cost of the program. Another
share, funds that are available in the DC reserves of $1.49 million, is
applied to fund the program. Finally, a share of the capital program is
deemed to benefit growth beyond 2031 for roads and 2041 for
wastewater, water and storm water, and thus, $89.81 million is removed
from the DC calculations.
-
The total costs eligible for DC recovery in the 2022 to 2041 period for
wastewater, water, and storm water is reduced to $39.45 million. The total
costs eligible for DC recovery in the 2022 to 2031 period for roads is
reduced to $21.91 million. Details of the engineered services capital
program and development charges calculations can be found in Appendix C.
E.
Development Charges are Calculated with Reference to
the DCA
-
Development charges rates have been established under the parameters
and limitations of the DCA. This study provides the rationale and basis
for the calculated rates.
-
Recent legislative changes, including amendments that came into force
through the More Homes, More Choice Act, the COVID-19 Economic
Recovery Act, and the More Homes Built Faster Act (Bill 23), have been
fully accounted for in this study.
-
A City-wide uniform cost approach is used to calculate development
charges for the eligible services. Uniform residential and non-residential
charges are levied throughout the City.
Executive Summary | 7
-
The calculated charges are the maximum charges the City may adopt.
Lower charges can be approved; however, this will require a reduction in
the capital plan and reduced service levels or financing from other
sources, most likely property taxes.
-
The fully calculated residential charges are recommended to vary by unit
type, reflecting the difference in occupancy patterns expected in various
unit types and the associated differences in demand that would be
placed on City services.
F.
Newly Calculated DC Rates Compared to Current Rates
-
The fully calculated residential charge for a single or semi-detached unit
in Orillia is $26,586, which represents an increase of 4.7 per cent from
the City's current charge of $25,397 (indexed to February 1, 2023, at
15.6%, as the City's DC By-law provides for annual indexing).
-
The calculated non-residential charge of $108.25 per square metre of
gross floor area an increase of 5.1% from the City's current non-
residential charge of $103.02 per square metre.
-
The charges for each unit type are summarize in the table below.
Municipal-wide Development Charges - Residential and Non-
Residential Charges
TOTAL CHARGE PER UNIT
$26,586
$24,821
$20,856
$14,601
$108.25
(1) Based on Persons Per Unit Of:
2.55
2.38
2.00
1.40
Single &
Semi-Detached
Non-Residential
Apartments
2 Bedrooms +
Residential Charge By Unit Type
Adjusted
Charge per
Square Metre
Other Multiples
Apartments
Bachelor & 1
Bedroom
Executive Summary | 8
G.
Development Charges By-Law Practices and Collection
Policies
-
It is recommended that existing practices regarding collection of
development charges and by-law administration continue to the extent
possible.
-
As required under the DCA, the City should codify any rules regarding
application of the by-laws and any exemptions within the development
charges by-laws proposed for adoption.
-
It is recommended that Council adopt the development-related capital
program included in this background study, subject to annual review
through the City's normal capital budget process.
H.
DC By-law to be Released Under Separate Cover
-
The City's proposed DC by-law will be made available under separate cover
a minimum of two weeks in advance of the statutory public meeting to be
held on January 16, 2022.
Introduction | 9
1. Introduction
This City of Orillia Development Charges (DC) Background Study is
presented as part of a process to lead to the approval of a new development
charge by-law in compliance with the Development Charges Act, 1997
(DCA).
The DCA and O. Reg. 82/98 require that a DC background study be prepared
in which development charges are determined with reference to:
-
The average capital service levels provided in the City over the fifteen-
year period immediately preceding the preparation of the background
study;
-
A review of future capital projects, including an analysis of gross
expenditures, funding sources, and net expenditures incurred, or to be
incurred, by the City or its local boards to provide for the expected
development, including the determination of the eligible and ineligible
components of the capital projects; and,
-
An examination of the long-term capital and operating costs for the
capital infrastructure required for each service to which the development
charges by-laws would relate.
This study presents the results of the review which determines the
development-related net capital costs which are attributable to development
that is forecast to occur in the City. These development-related net capital
costs are then apportioned among various types of development (residential;
non-residential) in a manner that reflects the increase in the need for each
service attributable to each type of development. The study arrives,
therefore, at calculated development charges for various types of
development.
Introduction | 10
The DCA provides for a period of public review and comment regarding the
calculated development charges. Following completion of this process, in
accordance with the DCA, Council's review of this study, comments received
regarding this study or other information brought to its attention about the
calculated charges, it is intended that Council will pass a new development
charges by-law for the City.
The remainder of this study sets out the information and analysis upon
which the calculated development charges are based.
Section 2 designates the services for which the development charges are
calculated and the areas within the City to which the development charges
will apply. It also briefly reviews the methodology that has been used in this
background study.
Section 3 presents a summary of the residential and non-residential
development which is forecast to occur within the City over the 2022-2031
period and to 2041.
Section 4 summarizes the historic fifteen-year average service levels that
have been attained in the City which form the basis for the development
charge calculations.
In Section 5, the development-related capital programs that have been
developed by various City departments are reviewed.
Section 6 summarizes the calculation of applicable development charges
and the resulting calculated development charges by land use and by unit
type.
Section 7 provides an examination of the long-term capital and operating
costs for each service included in the development charge calculation.
Introduction | 11
Section 8 summarizes the asset management plan component of the study
including required provisions for future replacement of assets included in
the growth related capital plan.
Section 9 provides a review of development charges administrative matters.
A City-Wide Methodology Aligns Development-Related Costs
and Benefits | 12
2. A City-Wide Methodology Aligns
Development-Related Costs and Benefits
Several key steps are required in calculating a development charge.
However, specific circumstances arise in each municipality which must be
reflected in the calculation. In this study, we have tailored our approach to
the City of Orillia's unique circumstances. The approach to the calculated
development charges is focused on providing a reasonable alignment of
development-related costs with the development that necessitates them.
This study calculates charges on a City-wide basis which is consistent with
the City of Orillia's 2022 Development Charges Study. Despite the fact that
development charges are calculated on a City-wide basis, legislation allows
a City to exempt or reduce rates for specific geographic areas. However,
legislation prevents lost revenue, due to exemptions or reductions, from
being made up through increasing charges on other areas.
A.
City-Wide Development Charges are Calculated
Orillia provides a range of services to its community and has a sizeable
inventory of facilities, land, infrastructure, vehicles and equipment. The DCA
provides the City with flexibility when defining services that will be included
in the development charge by-law, provided that the other provisions of the
Act and Regulations are met. The DCA also permits the City to designate, in
its by-laws, the areas within which the development charges shall be
imposed. The charges may apply to all lands in the City or to other
designated development areas as specified in the by-law.
In accordance with the recent changes to s.10 (2) of the DCA, a
development charge background study must give consideration for "the use
of more than one development charge by-law to reflect different needs for
A City-Wide Methodology Aligns Development-Related Costs
and Benefits | 13
services in different areas". Following consultation with City staff, and in
review of the City's relevant master planning documents, it was determined
that a municipal-wide approach continues to be most appropriate for the
nature of the works and services provided in Orillia, and as such, only a City-
wide charge has been proposed.
For all of the development charge eligible services that the City provides, the
full range of capital facilities, land, equipment and infrastructure is available
throughout the City. All residents therefore have access to all facilities. A
widely accepted method for recovering the development-related capital
costs for such services is to apportion them over all new development
anticipated in the City.
The following services are included in the City-wide development charge
calculation:
-
Library
-
Fire Protection
-
Indoor Recreation
-
Parks
-
Transit
-
Waste Diversion
-
Paramedic Services
-
Long Term Care
-
Service-Related to a Highway
-
Public Works Buildings & Fleet
-
Roads and Related
-
Wastewater
-
Water Services
-
Storm Water Management
A City-Wide Methodology Aligns Development-Related Costs
and Benefits | 14
Police services is not included in the calculation of development charges as
there is no growth related capital program associated to police services in
the planning period.
These services form a reasonable basis in which to plan and administer the
City-wide development charges. It is noted that the analysis of each of these
services examines the individual capital facilities and equipment that make
them up. For example, the Fire Services category includes fire stations and
associated land, vehicles, furniture and equipment.
The resulting development charge for all of the above services would be
imposed uniformly against all new development everywhere in the City.
B.
Key Steps in Determining Development Charges for
Future Development-Related Projects
Several key steps are required in calculating development charges for future
development-related projects. These are summarized in Figure 1 and
discussed further in the following sections.
A City-Wide Methodology Aligns Development-Related Costs
and Benefits | 15
Figure 1
Development Charge Calculation
A City-Wide Methodology Aligns Development-Related Costs
and Benefits | 16
i.
Development Forecast
The first step in the methodology requires a development forecast to be
prepared for the ten-year study period, 2022-2031, for general services and
Services Related to a Highway, and growth to 2041 for all other engineered
services.
For the residential portion of the forecast both the census population growth
and population growth in new units is estimated. Net population growth
determines the need for additional facilities and provides the foundation for
the development-related capital program.
The non-residential portion of the forecast estimates the gross floor area
(GFA) of building space to be developed over the ten-year period, 2022-
2031, and to 2031. The forecast of GFA is based on the employment forecast
for the City. Factors for floor space per worker by category are used to
convert the employment forecast into gross floor areas for the purposes of
the development charges study.
ii.
Service Categories and Historic Service Levels
The DCA provides that the increase in the need for service attributable to
anticipated development:
... 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...(s. 5. (1) 4.)
Historic fifteen-year average service levels thus form the basis for
development charges. A review of the City's capital service levels for
buildings, land, vehicles, and so on has therefore been prepared as a
reference for the calculation so that the portion of future capital projects
that may be included in the development charge can be determined. The
A City-Wide Methodology Aligns Development-Related Costs
and Benefits | 17
historic service levels used in this study have been calculated based on the
period 2007 - 2021.
In the case of Transit Ridership, the need for service is to be based on the
future planned level of service. For the purposes of this study, the Transit
capital program is considered to be the future planned level of service.
iii.
Development-Related Capital Program and Analysis of DC Eligible
Costs to be Recovered Through Development Charges
A development-related capital program has been prepared by the City's
departments as part of the present study. The program identifies
development-related projects and their gross and net municipal costs, after
allowing for capital grants, subsidies or other recoveries as required by the
Act (DCA, s. 5. (2)). The capital program provides another cornerstone upon
which development charges are based. The DCA requires that the increase
in the need for service attributable to the anticipated development may
include an increase:
... only if the council of the Municipality has indicated that it intends
to ensure that such an increase in need will be met. (s. 5. (1) 3.)
In conjunction with DCA, s. 5. (1) 4. referenced above, these sections have
the effect of requiring that the development charge be calculated on the
lesser of the historic fifteen-year average service levels or the service levels
embodied in future plans of the City. The development-related capital
program prepared for this study ensures that development charges are only
imposed to help pay for projects that have been or are intended to be
purchased or built in order to accommodate future anticipated development.
It is not sufficient in the calculation of development charges merely to have
had the service in the past. There must also be a demonstrated commitment
to continue to emplace facilities or infrastructure in the future. In this
regard, O. Reg. 82/98, s. 3 states that:
A City-Wide Methodology Aligns Development-Related Costs
and Benefits | 18
For the purposes of paragraph 3 of subsection 5 (1) of the Act, the
council of a Municipality has indicated that it intends to ensure that
an increase in the need for service will be met if the increase in
service forms part of an official plan, capital forecast or similar
expression of the intention of the council and the plan, forecast or
similar expression of the intention of the council has been approved
by the council.
For some projects in the development-related capital program, a portion of
the project may confer benefits to existing residents. As required by the
DCA, s. 5. (1) 6., these portions of projects and their associated net costs
are the funding responsibility of the City from non-development charges
sources. The amount of municipal funding for such non-DC-eligible shares
of projects is also identified as part of the preparation of the development-
related capital program.
There is also a requirement in the DCA to reduce the applicable
development charge by the amount of any "uncommitted excess capacity"
that is available for a service. Such capacity is available to partially meet the
future servicing requirements. Adjustments are made in the analysis to meet
this requirement of the DCA.
iv.
Attribution to Types of Development
The next step in the determination of development charges is the allocation
of the development-related net capital costs between the residential and the
non-residential sectors. In the City of Orillia, the allocation for general and
engineered services is based on the consideration of projected changes in
population and employment over the planning periods. The exceptions are
for the services of library, recreation, parks development, facilities and fleet
facilities, waste diversion services, and long-term care. The development-
related costs for these services have been allocated 100 per cent to
residential growth.
A City-Wide Methodology Aligns Development-Related Costs
and Benefits | 19
The residential component of the development charge is applied to different
housing types based on average occupancy factors. The non-residential
component is applied on the basis of gross building space in square metres
for non-residential development.
v.
Final Adjustment
The final determination of the development charge results from adjustments
made to development-related DC eligible costs for each service and sector
resulting from the application of any unallocated growth-related reserve
fund balances that are available to finance the development-related capital
costs in the capital program. A cash flow analysis is also undertaken to
account for the timing of projects and receipt of development charges.
Interest earnings or borrowing costs are therefore accounted for in the
calculation as allowed under the DCA.
Development Forecast | 20
3. Development Forecast
This section summarizes the growth forecast used to calculate the
development charges for the City of Orillia. Appendix A contains additional
material related to the growth forecast.
The growth forecast used in this Development Charges Background Study is
consistent with recent population and dwelling unit information from the
recent 2021 Census.
A.
Residential Growth Forecast
Table 1 provides a summary of the residential forecast for two planning
periods: a ten-year planning period, 2022 to 2031, and a twenty-year
planning horizon of 2022 to 2041. The ten-year planning period is used
throughout this study for the general services and roads and the longer
planning period is used for the other engineered services.
Over the planning period from 2022 to 2031, the total number of new
residential units will increase by 2,740, which translates into a population in
new units of approximately 6,266 additional people. The population in new
units was derived by using data from Statistics Canada analysing household
sizes in recently constructed units. The forecast has projected growth in the
2022 to 2041 period to accommodate 11,650 persons in 5,250 new housing
units. The 2031 Census population is forecast to reach 40,660.
It should be noted that all population figures used in the DC Study are
Census population figures, net of undercount. The DC Study relies on the
Census data without the undercount as it is consistent with the Census
household data set. Both population and household figures are utilized in
this DC Study so it is critical that a common and consistent data set is used.
A summary of the residential growth forecast can be found in Table 1.
Development Forecast | 21
B.
Non-Residential Growth Forecast
The non-residential forecast is based upon the Growth Plan. The forecast
employment for the City of Orillia is based on two major land use planning
types: employment land, and population-related (which includes retail and
institutional employment). Major office is included as a category, however
no major office development is expected in the forecast period.
The non-residential portion of the forecast estimates the amount of building
space to be developed in the City over the ten and twenty-year planning
periods. The forecast is based on the projected increase in employment
levels and the anticipated amount of new building space required
accommodating them.
The ten-year forecast projects an increase of 2,310 employees which can be
accommodated in 144,650 square metres of new non-residential building
space. For the planning period to 2031, the City will see a growth of 4,641
new employees and roughly 287,800 square metres of new non-residential
building floor area.
A summary of the non-residential growth forecast can be found in Table 1.
This table give
s a summary of the development forecast fo
r 2022-2031 pla
nnin
g period
.
Development Forecast | 22
Summary of Historic Capital Service Levels | 23
4. Summary of Historic Capital Service
Levels
The DCA and O. Reg. 82/98 require that the development charges be set at
a level no higher than the average service level provided in the City over the
ten-year period immediately preceding the preparation of the background
study, on a service-by-service basis.
For non-engineered services, or general services, (library, fire protection,
etc.) the legislative requirement is met by documenting historic service
levels for the preceding ten years, in this case, for the period 2012 to 2021.
Typically, service levels for general services are measured as a ratio of
inputs per capita (or per capita and employment).
O. Reg. 82/98 requires that when determining historical service levels both
quantity and quality of service be taken into consideration. In most cases,
the service levels are initially established in quantitative terms. For example,
service levels for buildings are presented in terms of square feet per capita.
The qualitative aspect is introduced by the consideration of the monetary
value of the facility or service. In the case of buildings, for example, the cost
would be shown in terms of dollars per square foot to replace or construct a
facility of the same quality. This approach helps to ensure that the
development-related capital facilities that are to be charged to new
development reflect not only the quantity (number and size) but also the
quality (value or replacement cost) of service provided historically by the
City. Both the quantitative and qualitative aspects of service levels used in
the present analysis are based on information provided by City staff based
on historical records and their experience with costs to acquire or construct
similar facilities, equipment and infrastructure.
Summary of Historic Capital Service Levels | 24
In the case of Transit Ridership, the development charge calculation is
based on the planned level of service. For the purposes of this study the
ten-year Transit services capital program is considered the planned level of
service. The current existing Transit inventory has been included (see
Appendix B.6).
Table 2 summarizes service levels for all City-wide general services included
in the development charge calculation (excluding Transit). Appendix B
provides detailed historical inventory data upon which the calculation of
service levels is based for general services.
This ta
ble summarizes
the average historical service levels over the past 15
years
for
each General Se
rvice a nd Service
s Related
to a H ighway.
Summary of Historic Capital Service Levels | 25
The Development-Related Capital Program | 26
5. The Development-Related Capital
Program
A.
A Development-Related Capital Program is Provided for
Council's Approval
The DCA requires the Council of a Municipality to express its intent to
provide future capital facilities at the level incorporated in the development
charges calculation. As noted above in Section II, O. Reg. 82/98, s. 3 states
that:
For the purposes of paragraph 3 of subsection 5 (1) of the Act, the
council of a Municipality has indicated that it intends to ensure that
an increase in the need for service will be met if the increase in
service forms part of an official plan, capital forecast or similar
expression of the intention of the council and the plan, forecast or
similar expression of the intention of the council has been approved
by the council.
Based on the growth forecasts summarized in Section III and detailed in
Appendix A, City staff, in collaboration with the consultants, developed a
development-related capital program setting out those projects that are
required to service anticipated development. For all general services and
Services Related to a Highway the capital program covers the ten-year
period from 2022 to 2031. The development charge for engineered services
(except Services Related to a Highway) is based on development expected
in the City to 2041 which is in line with the City's Servicing Master Plans.
One of the recommendations contained in this background study is for
Council to adopt the development-related capital program derived for the
purposes of the development charges calculation. It is assumed that future
capital budgets and forecasts will continue to bring forward the
The Development-Related Capital Program | 27
development-related projects contained herein that are consistent with the
development occurring in the City. It is acknowledged that changes to the
capital program presented here may occur through the City's normal capital
budget process.
B.
The Development-Related Capital Program for General
Services
A summary of the growth-related capital forecast for general services is
presented in Table 3.
The table provides a separate total for services analysed over the ten year
period, 2022-2031. Further details on the capital programs for each
individual service category are available in Appendix B.
The development-related capital program for general services estimates a
total gross cost of $361.32 million. $191.12 million in grants and subsidies
has been identified. Therefore, the net municipal cost of the capital program
is approximately $168.41 million.
This capital program incorporates those projects identified to be related to
development anticipated in the next ten years. It is not implied that all of
these costs are to be recovered from new development by way of
development charges (see Section VI for the method and determination of
net municipal costs attributable to development). Portions of this capital
program may relate to providing servicing for development which has
occurred prior to 2022 (for which development charge reserve fund balances
exist), for replacement of existing capital facilities, or for development
anticipated to occur beyond the 2022 - 2031 planning period.
The capital program associated with the Library Service relates to the
recovery of the existing negative DC reserve fund balance, and also
additional growth-related collection materials. The total net municipal cost
for this program totals to $2.12 million.
This
table g
ives the
develop
ment
related
capi
tal
prog
ram
for
each
Gen
eral
Ser
vice
ove
r t
he ten-year plan
ning p
erio
d.
The Development Related Capital Program | 28
The Development-Related Capital Program | 29
The Fire Services has plans to construct a new fire station. Also included in
the capital program is the recovery of the negative reserve fund balance, and
also bunker gear for new fire fighters will be purchased in the ten-year
planning period. The net municipal cost is therefore $10.67 million.
$52.92 million is related to the provision of Indoor Recreation services,
which is related to the new Orillia Recreation Facility currently under
construction and purchasing new fitness equipment.
The net municipal cost of the Parks capital program is approximately $25.90
million and that provides for additional parkland additions, new trails, fleet
additions and also recovers for the negative reserve fund balance.
The Services Related to a Highway: Public Works capital program
provides for various additions to the fleet and the James Street Works
Garage Addition. The net cost of the program is $24.35 million.
The net municipal cost of the Transit Ridership capital program is $36.48
million and recovers for the negative reserve fund balance, the purchases of
two buses, a new transit terminal and additional stops with shelters.
The net municipal cost of the Waste Diversion capital program is $4.55
million and recovers for the negative reserve fund balance, the purchases of
new facilities and land, and a new multi-function equipment.
The County of Simcoe delivers Paramedic Services to its area
municipalities and the separated Cities of Barrie and Orillia. The City of
Orillia is required to contribute to capital costs incurred by this service
based on their weighted taxable assessment, as such, the City's share of the
program is 6 per cent. The program provides for the purchase of land,
construction of stations and hubs, and additional emergency response
vehicles. The gross cost of the program is $50.74 million, however, the City's
net municipal cost is $2.91 million.
The Development-Related Capital Program | 30
The County of Simcoe delivers Long Term Care to its area municipalities
and the separated Cities of Barrie and Orillia. The City of Orillia is required
to contribute to capital costs incurred by this service based on their
weighted taxable assessment, as such, the City's share of the program is
10.84 per cent. The net municipal cost for this program amounts to $8.50
million, which does not include the affordable housing component.
C.
Development-Related Capital Program for Engineered
Services
Table 4 provides a summary of the 2022 - 2041 engineered services capital
program. The capital program is comprised of roads and related, sanitary
sewer, water service, and storm water management projects.
The Services Related to a Highway: Roads projects are comprised of lane
widenings, intersection signalization, sidewalks, and also the recovery of the
roads DC negative reserve fund balance. The gross cost of the roads and
related program is $38.90 million and $1.61 million in grants or subsidies are
anticipated to help fund the capital program. The net municipal cost for
roads is $37.29 million.
The gross cost of the Wastewater capital program is $134.85 million and
this provides for tertiary treatment, trunk sewer upgrades and expansions,
pumping station upgrades and the recovery of the existing reserve fund
deficit. There are $5.60 million in grants and subsidies anticipated for
Wastewater meaning a net municipal cots of $129.25 million.
The Water services capital program provides for storage capacity,
watermain upgrades and oversizing, a booster station, loop and trunk
transmission, and water system upgrades. The gross cost of this capital
program is $38.88 million. There are an estimated $5.58 million in grants and
subsidies for a net municipal cost $33.30 million.
The Development-Related Capital Program | 31
The Storm Water Management capital program provides for the recovery of
the existing reserve fund deficit, sanitary trunk sewer relocation and
infrastructure upgrades. The gross cost of this capital program is $31.49
million. There are an estimated $5.58 million in grants and subsidies for a
net municipal cost $25.91 million.
The total gross cost of the engineered services capital program totals to
$244.13 million. Grants, subsidies and other contributions of $18.37 million
and benefit to existing shares of $73.10 million have been removed from the
DC calculation. It is anticipated that $1.49 million is available in the water
reserve to help fund the Water Services program. Finally, $89.81 million is
deemed to benefit development beyond 2031 for roads and 2041 for other
engineered services (i.e. - mostly related the wastewater treatment centre
expansion, and the expansion to the water filtration plant) and as such,
these costs have been removed from the DC rate calculation and will not be
recovered through this DC By-law.
The total remaining amount for all engineering services that is eligible for
recovery through DCs is $61.36 million. These costs will be brought forth
into the DC rate calculation. A summary of the growth-related capital
forecast for engineered services is presented in Table 4. Further details on
the capital programs for each individual service category are available in
Appendix C.
This ta
ble
give
s th
e de
velo
pmen
t re
late
d ca
pita
l pr ogram for each Engineered Service over the ten-y
ear (Road
s) or tw
enty-year
(all ot
her engi
neered s
ervice
s) p
lanning
period.
The Development Related Capital Program | 32
Cont
inua
tion
of
tabl
e gi
vein
g th
e de
velo
pmen t related
capital
progra
m for
each E
nginee
red S
ervic
e ove
r the te
n-year (
Road s) or twenty-year (all other engineered s
ervi
ces)
pla
nnin
g pe
riod
.
The Development Related Capital Program | 33
Development Charges are Calculated in Accordance with the DCA | 34
6.
Development Charges are Calculated in
Accordance with the DCA
This section summarizes the calculation of development charges for each
service category and the resulting total development charge by type of
development. Furthermore, the calculation of the "unadjusted" per capita
(residential) and per square metre (non-residential) is presented.
Adjustments are made to these amounts resulting from a cash flow analysis
that considers interest earnings and borrowing costs.
For residential development, the adjusted total per capita amount is then
converted to a variable charge by housing unit type using unit occupancy
factors. For non-residential development, the calculated non-residential
charges are based on gross floor area (GFA) of building space.
It is noted that the calculation of the City-wide development charges does
not include any provision for exemptions required under the DCA. Such
legislated exemptions, or other exemptions or reductions which Council may
choose to provide, will result in loss of development charge revenue for the
affected types of development. Any such revenue loss may not be made up,
however, by offsetting increases in other portions of the calculated charge.
A.
Unadjusted Development Charge Calculation for General
Services
A summary of the "unadjusted" residential and non-residential development
charges for general services is presented in Table 5. Further details of the
calculation for each individual City service category are available in
Appendix B.
This table provides a summary of unadjust
ed re
sidential and no
n-residential development charg
es with
the capital
program
for Ge
ner
al Services
.
Development Charges are Calculated in Accordance with the DCA | 35
Development Charges are Calculated in Accordance with the DCA | 36
The capital program for general services incorporates those projects
identified to be related to development anticipated in the next ten years and
totals $168.41 million in net City costs. However, not all of the capital costs
are to be recovered from new development by way of development charges.
Table 5 shows that $104.06 million of the capital program relates to
replacement of existing capital facilities or to shares of projects that provide
benefit to the existing community. These portions of capital costs will likely
be funded from property taxes, user fees or other non-development charge
revenue sources.
An additional share of $554,600 has been identified as DC reserve fund
monies are available to fund growth-related projects. These funds have
been earmarked for specific projects and they have each been identified in
Appendix B. This portion has been netted out of the chargeable capital
costs. Another share of the forecast, $31.40 million, is attributable to
development beyond the planning period (which will be considered for
recovery in future development charges studies, subject to service level
considerations).
The total costs eligible for recovery through development charges for
general services is $32.39 million. This amount is allocated between the
residential and non-residential sectors to derive the unadjusted
development charges. Library service, recreation, parks, waste diversion,
and long term care are all deemed to benefit residential development only,
while the other services are allocated between both sectors based on shares
of census population and employment growth. Approximately $29.58 million
of the general services development charges recoverable amount is deemed
to benefit residential development. When this amount is divided by the ten-
year population growth in new units (6,266), an unadjusted charge of $4,721
per capita is derived. The non-residential share of the general services
capital program totals $2.81 million and when this amount is divided by the
Development Charges are Calculated in Accordance with the DCA | 37
ten-year forecast of new non-residential space growth (144,650 square
metres), an unadjusted charge of $19.47 per square metre is derived.
B.
Unadjusted Development Charge Calculation for
Engineered Services
Table 6 describes the calculation of unadjusted rates for engineered
services. The engineered services capital program totals $225.76 million, of
which $61.36 million, is identified to be related to development over the
2022-2031 period for roads and 2022-2041 period for the other services. The
capital program eligible for recovery through development charges is
allocated to the residential and non-residential sectors based on future
shares of census population and employment growth. On this basis, the
allocation to the residential and non-residential sectors is calculated at 73
per cent and 27 per cent for roads and 72 per cent and 28 per cent for other
engineered services.
The residential sector's share of the engineered services capital program is
$44.22 million. This amount, divided by the population growth in new units
to build-out is $4,977 per capita.
The unadjusted non-residential DC was calculated by taking the non-
residential share of the development-related capital program ($17.14
million) and dividing it by the growth in non-residential gross floor area to
2031 for roads and 2041 for other services. Non-residential unadjusted
charges have been calculated at $79.85 per square metre.
This table provides a summary of unadjusted
resid
ent
ial and non-residential developme
nt char
ge
s with the capital program for Engineered
Serv
ice
s.
Development Charges are Calculated in Accordance with the DCA | 38
Development Charges are Calculated in Accordance with the DCA | 39
C.
Adjusted Residential and Non-Residential Development
Charges
Final adjustments to the "unadjusted" development charge rates
summarized above are made through a cash flow analysis. The analysis,
details of which are included in the Appendices, considers the borrowing
cost and interest earnings associated with the timing of expenditures and
development charge receipts for each service.
Table 7 summarize the results of the adjustment for the residential
development charge rates. The adjusted per capita rate increases from
$9,697 to $10,428 after the cash flow analysis. Residential City-wide
development charges are proposed to vary by dwelling unit type to reflect
their different occupancy factors and resulting demand for services. The
calculated residential development charges for all services are shown in
Table 7.
As shown in the table, the calculated residential charge ranges from $14,601
for a bachelor or one bedroom apartment to $26,586 for single and semi-
detached unit. The calculated charge for large apartments is $20,856 and for
multiple dwelling units is $24,821.
The calculated non-residential development charges rates are presented in
Table 8. The calculated unadjusted charge is $99.31 per square metre. The
calculated cash-flow adjusted charge is $108.25.
This table gives
res
iden
tial
dev
elop
ment
cha
rges per capi
ta a
nd f
or e
ach
unit
typ
e br
oken down by serv
ice ar
ea.
Development Charges are Calculated in Accordance with the DCA | 40
This table give
non-r
eside
ntia
l development
char
ges p
er s
quare metre broke
n dow
n by
serv
ice area.
Development Charges are Calculated in Accordance with the DCA | 41
Development Charges are Calculated in Accordance with the DCA | 42
D.
Comparison of 2022 Newly Calculated Development
Charges With Charges Currently In Force in Orillia
Tables 9 and 10 present a comparison of the newly calculated residential
and non-residential development charges with the development charges
rates as of February 1, 2023. As shown in Table 9, the residential
development charge rate for a single- or semi-detached unit increased by
$1,189 per unit, or 4.7 per cent.
The calculated development charges rate for non-residential development is
$108.25 higher by $5.23 than the current rate of $103.02.
This ta
ble compar
es calc
ulated deve
lopment cha
rge rates for si
ngle detache
d unit with the
curren
t de
velopm
ent ch
arge rates br
oken
dow
n by
serv
ice area.
Development Charges are Calculated in Accordance with the DCA | 43
This ta
ble compar
es the
calculated
non-residential
development cha
rge ra
te per square me
t wit
h the
curr
ent
development
charg
e rat
es br
oken
down by service a
rea.
Development Charges are Calculated in Accordance with the DCA | 44
Long-Term Capital and Operating Costs | 45
7. Long-Term Capital and Operating Costs
This section provides a brief examination of the long-term capital and
operating costs for the capital facilities and infrastructure to be included in
the development charges by-law. This examination is required as one of the
features of the DCA.
A.
Net Operating Costs for the City's Services Estimated to
Increase over the Forecast Period
Table 11 summarizes the estimated increase in net operating costs that the
City will experience for additions associated with the planned capital
program. These estimates are based on average costs derived from a review
of recent budgets and the FIR (additional details are included in Appendix E).
As shown in Table 11, by 2031, the City's net operating costs for tax-
supported services are estimated to increase by $6.19 million. The most
significant portion of this increase relates to the construction of the new fire
station and roads operations. Operating and maintenance costs will also
increase as additions to the City's road network are undertaken. The
development forecast provides for close to a 19 per cent increase in the
number of households. It is anticipated that the assessment, and associated
tax revenues, will adequately fund these increases without any major tax
rate impacts.
B.
Long-Term Capital Financing from Non-Development
Charge Sources Totals $177.16 Million
Table 11 also summarizes the components of the development-related
capital program that will require funding from non-development charges
sources. Of the $393.04 million net capital program, about $177.16 million
Long-Term Capital and Operating Costs | 46
will need to be financed from non-development charges sources over the
next ten years. This is for shares of projects for non-growth shares of
projects that provide benefit to the existing community. In addition, $121.21
million in interim financing may be required for projects related to growth in
the post-period. It is likely that most of these monies could be recovered
from future development charges as the by-laws are revisited at least every
five years.
This
table highlights the DC-e
ligible and non-
DC elig
ible capital
program f
or each service o
ver the
planning period. This table also co
ntains
the AMP provision to 2031 required for the
DC-rela
ted cap
ital pr
ogram and non-DC related
capit
al program.
Long-Term Capital and Operating Costs | 47
Asset Management Plan | 48
8.
Asset Management Plan
The Development Charges Act now requires that municipalities complete an
Asset Management Plan before the passing of a development charges by-
law. A key function of the Asset Management Plan is to demonstrate that all
assets proposed to be funded under the development charges by-law are
financially sustainable over their full life cycle. Further details relating to the
Asset Management Plan are discussed in Appendix F.
A.
Annual Capital Provisions will Reach $8.46 Million by
2031
Table 12 summarizes the annual capital provisions required to replace the
capital infrastructure proposed to be funded under the development charges
by-law. This estimate is based on information obtained through discussions
with municipal staff regarding useful life assumptions and the capital cost of
acquiring and/or emplacing each asset.
Table 12 illustrates that, by 2031, the City will need to fund an additional
$8.46 million per annum in order to properly fund the full life-cycle costs of
the new City-wide soft and City-wide hard assets supported under this
development charges by-law.
The calculated annual funding provision should be considered within the
context of the City's projected growth. Over the next ten years (to 2031) the
City is projected to increase by approximately 2,740 households, which
represents a 19 per cent increase over the existing base. In addition, the City
will also add nearly 2,310 new employees that will result in approximately
144,650 square metres of additional non-residential building space. This
growth will have the effect of increasing the overall assessment base and
additional user fee and charges revenues to offset the capital asset
Asset Management Plan | 49
provisions required to replace the infrastructure proposed to be funded
under the development charges by-law.
In addition, as part of the annual budget update the City also contributes to
asset replacement reserves and spends on yearly asset replacement needs
as needed.
Through this annual exercise, staff identify the required funding and propose
mitigating measures in order to ensure there are sufficient funds in reserves
over the long term. Life-cycle funding methodologies are also reviewed in
order to ensure that the City is continuing to implement financially
sustainable practices for funding the eventual replacement of assets.
The calculated annual provisions identified are considered to be financially
sustainable as it is expected that the increased capital asset management
requirements can be absorbed by the tax and user base over the long-term.
This table give
the net operating
cost impacts a
nd long-term cap
ital impacts for t
ax supported s
ervices.
Asset Management Plan | 50
Development Charges Administration | 51
9. Development Charges Administration
A.
Development Charge Administration
Many of the administrative requirements of the DCA will be similar to those
presently followed by the City in terms of collection practices. In this regard:
-
The proposed draft by-law (available under separate cover) sets out the
rules to determine development charges applicable in any particular
case. Rules for exemptions, potential reductions, and redevelopment of
land are also outlined in the proposed draft by-law;
-
It is recommended that limited exemptions, other than those required in
the DCA be formally adopted in the by-laws; and
-
It is recommended that Council adopt the development-related capital
program included in this background study, subject to annual review
through the City's normal capital budget process.
B.
Consideration for Area-Related Services
In accordance with the recent changes to s.10(2) of the DCA, a development
charge background study must give consideration for "the use of more than
one development charge by-law to reflect different needs for services in
different areas". Following consultation with City staff, and in review of the
City's relevant master planning documents, it was determined that a
municipal-wide approach continues to be most appropriate for the nature of
the works and services provided in Orillia, and as such, only a City-wide
charge has been proposed.
For all of the development charge eligible services that the City provides, the
full range of capital facilities, land, equipment and infrastructure is available
throughout the City. All residents therefore have access to all facilities. A
Development Charges Administration | 52
widely accepted method for recovering the development-related capital
costs for such services is to apportion them over all new development
anticipated in the City.
The needs for servicing are outlined as follows:
General Services
-
Services such as Library, Indoor Recreation, Parks and Social Housing
are open and accessible to all residents in the City and are driven and
planned for based on City-wide population growth.
-
For Fire, Services Related to a Highway: Public Works, Parking,
Transit and Paramedic Services these services are provided to all
residents and employees in the City and are driven and planned for
based on City-wide population or population and employment growth.
Engineered Services
-
Linear infrastructure services such as Services Related to a Highway:
Public Roads & Related, Sewer, Water and Storm water are provided
through a City-wide network and is planned based on City-wide
population and employment growth.
C.
Local Service Definitions
The following provides the definition of "local service" under the DCA for a
number of services provided by the City of Orillia. The purpose in
establishing these definitions is to determine the eligible capital costs for
inclusion in the development charges calculation for the City. The functions
or services deemed to be local in nature are not to be included in the
determination of the development charges rates. The provision of local
services is considered to be a direct developer responsibility under s.59 of
the DCA and will (or may) be recovered under other agreement(s) with the
Development Charges Administration | 53
landowner or developer. The issue of "local service" is being specifically
considered for the services of:
-
Roads
-
Water Service
-
Sanitary Sewer
-
Storm Water Services
-
Parkland Development
1.
Roads
Local Roads:
All roads and share of roads identified as local are to be treated as a local
service under the DCA and the associated costs are not to be included in the
development charges calculation.
Road Oversizing:
If a local road is oversized to accommodate additional traffic needs external
to the subject lands, the oversized share of the roads is to be included in the
development charges calculation.
Note, oversizing of roads usually relates to collector roads, however it is
possible that a share of an arterial road may be local and would be funded
as a direct developer responsibility. It is noted that growth-related arterial
roads requirements are generally fully funded from development charges.
2.
Water and Sanitary Sewer
-
Major external trunk watermains and sanitary sewers, being those
400mm and larger, and major pumping stations are to be included within
the DC. Oversizing within subdivisions to also be included in the DC
400mm and larger for watermains and sanitary sewers;
Development Charges Administration | 54
-
Connections to trunk mains and minor pumping stations to service
specific areas to be direct developer responsibility as a local service
provision (s.50 of DCA). Minor pumping stations are those that service a
single subdivision, or that service adjacent or adjoining subdivisions.
3
Storm Water Management (SWM) Facilities
-
The costs of storm water management facilities internal to subdivision and
related to a plan of subdivision are considered to be a local service under
the DCA and the associated costs are not included in the development
charges calculation. Local SWM facilities would typically include:
-
Storm water management facilities servicing local drainage areas;
-
Storm sewer oversizing associated with local drainage areas;
-
Storm sewer works on existing roads.
4.
Parkland Development
-
For the purpose of parkland development, local services include the
requirement for the owner to undertake preparation of the park plan,
retaining necessary consultants to prepare design and grading plans for
the park, prior to development. In addition, the owner is required to
provide stripping and stockpiling, levelling, top soiling, seeding or
sodding, storm water servicing (consistent with the plan), and provide
services to the lot line. These requirements are part of the conditions of
s.51 and 53 of the Planning Act agreements. The municipality also
requires the owner to dedicate parkland or provide cash-in-lieu,
consistent with the Planning Act provisions. All of these costs are
deemed a direct responsibility of the developer and have not been
included in the development charges calculation.
-
With respect to other parkland development costs, the municipality has
included all other components of parkland development in the
development charges calculation, including parking, park furniture,
Development Charges Administration | 55
signage, landscaping and walkways/trails, in addition to the necessary
fields, diamonds, playground equipment, lighting, irrigation and field
houses.
D.
Changes Arising From the More Homes Built Faster Act
Bill 23
As of November 28, 2022 there are several changes to the DCA due to the
enactment and Royal Assent of Bill 23. A list of the changes that are now in
force is provided below in Table 13.
Table 13: Bill 23 - DCA Changes In Force as of November 28, 2022
Section
Description
Section
2(1)
Exemptions for existing rental residential buildings and a
range of residential units in existing and new houses.
Section
2(4)
Housing services are ineligible for DC funding (repeal of
paragraph 17 of ss.2(4) of the DCA). Existing by-laws are
deemed to be "amended" and no development charges can
be collected for housing services from November 28, 2022
onward.
Section 4.2 Exemptions for non-profit housing development. This does
not apply with respect to a DC payable before November 28,
2022.
Section 4.3 Exemption for inclusionary zoning residential units. This
does not apply with respect to a DC payable before
November 28, 2022.
Section
5(1)
Historical service level calculation period extended from 10
years to 15 years. Does not apply to by-laws in force prior to
November 28, 2022.
Development Charges Administration | 56
Section
Description
Section
5(4)
Studies, including DC studies, are no longer a DC-eligible
capital cost. Does not apply retroactively to by-laws that
were in force prior to November 28, 2022.
Section
5(6) and
Section
5(7)
DC by-laws passed on or after November 28, 2022 must be
phased-in according to a prescribed schedule. The phase-in
also applies retroactively to by-laws passed on or after
January 1, 2022 as well as to the DCs "frozen" under s.26.2
of the DCA.
Section
9(1)
Maximum life of a DC by-law extended from 5 years to 10
years. This does not apply to by-laws in-force before
November 28, 2022.
Section
26.1
Deferral payments now apply to rental housing and
institutional development. Interest on deferral payments is
now capped at prime plus 1% in accordance with s.26.3.
Section
26.2
DCs for rental housing development are now discounted
based on the number of bedrooms proposed. Interest on DC
freeze now capped at prime plus 1% in accordance with
section 26.3.
Section
26.3
Maximum interest rates are capped at prime plus 1%. This
does not apply with respect to a DC that was payable before
November 28, 2022.
Section 35
Municipalities are now required to spend or allocate at least
60% of reserve balances each year for Water Supply,
Wastewater, and services related to a highway beginning in
2023.
Section
60(1)(s.4)
Additional services for which municipalities are required to
spend or allocate at least 60% of reserve fund balances may
be prescribed through Regulations (none are proposed as of
yet).
Development Charges Administration | 57
Table 14 summarizes the DCA changes that will take effect at a date to be
determined. It is noted that section 60(1)(l) of the DCA allows for future
regulations to identify services for which land will be an ineligible capital
cost. No regulations have been released in this regard.
Table 14: Bill 23 - DCA Changes Not Currently In Force
Section
Description
DCA,
Section 4.1
Exemptions for affordable and attainable residential units.
Note: Implementation is contingent on the Minister
developing a definition of "attainable residential unit" as well
as bulletins to establish eligibility and (possibly) standard
forms of agreement to assist with administration.
DCA,
Section
44(4)
Rules for front ending agreements as they relate to
affordable and attainable residential units.
DCA,
Section
60(1)(d.2)
and 9d.3)
Prescribes developments and criteria related to attainable
residential units (section 4.1).
i.
Recommendations
-
As required under the DCA, the City should codify any rules
regarding application of the by-law and exemptions within the DC
by-law proposed for adoption.
-
It is recommended that Council adopt the development-related
capital forecast included in this Background Study, subject to
annual review through the City's normal capital budget process.
Development Charges Administration | 58
-
It is recommended that limited exemptions, other than those
required in the DCA, be formally adopted in the by-laws.
-
It is recommended that the City continue to include indexing
provisions in the by-law so as to ensure that the DC rates
incorporate inflationary increases over the by-law term.
Appendix A
Development Forecast
Appendix A | 59
Development Forecast
This appendix provides the details of the development forecast that was
used to prepare the 2022 Development Charges Background Study for the
City of Orillia. The forecast method and key assumptions are discussed and
the results of the forecasts are presented in the following tables:
Historical Development
Table A-1
Historical Population, Household & Employment Summary
Table A-2
Historical Annual Housing Completions (CMHC)
Table A-3
Historical Occupied Households by Unit Type
Table A-4
Historical Annual Growth in Occupied Households by Unit Type
Table A-5
Historical Households by Period of Construction
Table A-6
Historical Place of Work Employment
Forecast Development
Table A-7
Population & Dwelling Unit Forecast Summary
Table A-8
Forecast of Dwelling Units by Unit Type
Table A-9
Forecast of Household Growth by Unit Type
Table A-10 Population Growth in New Households by Unit Type
Table A-11 Forecast of Place of Work Employment
Table A-12 Non-Residential Space Forecast
The forecasts of population, households and employment are based on of
the Growth Plan for the Greater Golden Horseshoe and have been adjusted
to reflect new information on population and occupied dwellings from the
2021 Census.
A.
Forecast and Key Assumptions
The Development Charges Act requires the City to estimate "the anticipated
amount, type and location of development" for which development charges
Appendix A | 60
may be imposed. The forecast must cover both residential and non-
residential development and be specific enough with regards to the
quantum, type, location and timing of such development to allow the City to
prepare a reasonable development-related capital program.
A ten-year development forecast, from 2022 to 2031, has been used to
calculate the development charges for the general services and services-
elated to a highway (largely roads and related infrastructure) in the City. For
the engineered services excluding Services Related to a Highway, which
include Wastewater, water services and Storm Water management, a
longer-range forecast, from 2022 to 2041 has been used.
The forecasts of population and employment are consistent with the
Province's growth allocation to the City of Orillia at 2031. Minor adjustments
have been made to some of the census and occupied dwelling unit figures to
reflect recent development activity and new information that affects the
growth outlook to 2031. In particular, recent data from the 2021 Census has
been used to update the 2021 population and occupied dwelling figures.
2021 Census population was 35,320 and 2021 occupied households was
14,480 as reported by Statistics Canada.
B.
Historical Development in the City
Table A-1 shows that the rate of population growth in the City has fallen
from a high of about 229 people per annum to about 125 people per annum
between the 2011 and 2016 Census years. Since the 2016 Census, the
population growth has increased to an average of about 662 people per
annum. During the period 2006-2021, growth in occupied dwellings
increased from 145 units per annum in 2007 to 206 units per annum by 2021.
The City has experienced fluctuations in population, household and
employment growth over the last fifteen years due to a number of factors.
As shown in Table A-2, there was substantial development from 2016 to
Appendix A | 61
2018 which was fuelled by the available supply of greenfield land and rapid
economic growth. An average of 62 per cent of new units built per year were
singles/semis as shown in Table A-3. As land supply diminished, residential
development in the City began to slow.
Historical growth and development figures presented in this appendix are
based on Statistics Canada Census data, Canada Mortgage and Housing
Corporation (CMHC) data and the 2016 National Household Survey Special
Run. A "Census-based" definition of population is used for the purposes of
the development charges study. This definition does not include the Census
net undercoverage which is typically included in the definition of "total"
population. For development charges purposes, a ten-year historical period
of 2011 to 2021 is used for calculating service levels. Population and
occupied household figures have been updated to reflect the 2021 Census.
Table A-4 summarizes all occupied households by unit type in the City of
Orillia based on Census and CMHC data. Table A-4 illustrates the annual
changes in growth of each type of unit since 2012. The overall market shares
for single and semi-detached dwelling units has increased from a 51 per
cent in 2012 to 66 per cent by 2021. Meanwhile, row and apartment dwelling
units have decreased by 3% and 13% from 2012 to 2021, respectively.
The City's population increased from approximately 30,260 people in 2006 to
35,320 in 2021. This represents an increase of approximately 3 per cent. The
number of occupied dwelling units in the City also experienced an increase
during the ten-year historical period, increasing from roughly 12,230 in 2007
to 13,480 occupied households in 2016, a 10 per cent increase. As shown in
Table A-5, the difference between the rates of population and occupied
dwelling unit growth is the result of a decline in the average number of
persons residing in housing units.
The overall average occupancy level in Orillia for single and semi-detached
units is 2.45 persons per housing unit (PPU). Occupancy levels for recently
Appendix A | 62
constructed units, between 2006 and 2016, are higher than the overall
average and are used in the development charges calculation since it better
reflects the number of people that are likely to reside in new developments.
The average PPU of single and semi-detached units built in the City pre
2006 is 2.44. Average PPUs for recently constructed row housing and
apartments (excluding duplexes) are 2.38 and 1.59, respectively.
Table A-6 summarizes the growth in historical employment by place of work
by Population-related, Employment Land, Work at Home/No Fixed, and
Major Office Employment in the City of Orillia between 2011 and 2021.
Historical employment figures are shown in Table A-6 and are based on
Statistics Canada place of work data. Place of work data records where
people work rather than the place of residence. The employment figures
used for development charges calculations includes employees with no fixed
place of work, but excludes work at home employment. The work at
home/no fixed place of work category has increased from 730 employees in
2011 to about 820 employees in 2021. The City's employment land declined
over the 2011 to 2016 period as a result of the global economic slowdown.
Overall, the City's employment has increased over the last ten years from
17,300 in 2011 to 18,650 in 2021; this represents an increase of 7.8 per cent.
C.
Forecast Method and Results
This section describes the method used to establish the development
forecast for the periods of 2022 to 2031 and 2022 to 2041.
Development charges are levied on residential development as a charge per
new unit. Therefore, for the residential forecast, a projection of both the
population growth1 as well as the population in new housing is required.
Commonly referred to as "net population growth" in the context of development charges.
Appendix A | 63
-
The population growth determines the need for additional facilities and
provides the foundation for the development-related capital program.
-
When calculating the development charge, however, the development-
related net capital costs are spread over the total additional population
that occupies new dwelling units. This population in new units represents
the population from which development charges will be collected.
Development charges are levied on non-residential development as a charge
per unit of gross floor area (GFA). The non-residential forecast includes
both a projection of employment growth as well as a projection of the floor
space associated with employment growth in the City.
i.
Residential Forecast
The residential development forecast incorporates anticipated growth in
population and occupied dwelling units by type. As detailed in Table A-7, the
City's Census population is forecast to grow from approximately 35,906 in
2022 to 40,660 in 2031 and 45,190 in 2041. The ten-year population growth
from 2022 to 2031 of 5,340 persons represents an increase of approximately
15 per cent over the existing base. The longer-term increase of 9,870
persons to 2041 represents an increase of approximately 27 per cent.
Over the ten-year planning period from 2022 to 2031, the number of
occupied housing units is forecast to increase from 14,757 in 2022 to 17,220
in 2031. By 2041, this number is expected to reach 19,730 units. The overall
ten-year growth of 2,740 units represents and increase of 18 per cent over
the next ten years. The longer-term growth of 5,250 units represents a 35
per cent increase to 2041.
A breakdown of anticipated housing in the City by unit type is shown in
Table A-8. The housing forecast shows that the City's housing market will
continue to be characterized by a preference for single and semi-detached
Appendix A | 64
unit types, with an increasing share of the market being represented by
higher density built forms (both row units and apartments).
As demonstrated in Table A-9, over the ten-year period, the type of new
housing in the City is forecast to be composed largely of single and semi-
detached units (1,580), followed by rows (880) and apartments (330).
Population growth in the new units is estimated by applying the following
2022 PPUs to the housing unit forecast: 2.55 for single and semi-detached
units; 2.00 for rows; and 1.44 for apartments. These PPUs in new units are
expected to decline slightly over time as the overall population ages. The
forecast of population expected to reside in new housing units over the 2022
to 2031 period is 6,266 additional persons. Over the longer-term planning
period, 11,650 additional persons are anticipated. This population growth by
unit type is shown in Table A-10.
ii.
Non-Residential Forecast
Table A-11 illustrates the forecast total employment growth in the City of
Orillia by employment category to 2031. Non-residential development
charges are calculated on a per unit of gross floor area (GFA) basis.
Therefore, as required by the DCA, a forecast of future non-residential
building space has also been developed. As with the residential forecast, the
employment and GFA forecasts cover the ten-year period from 2022 to 2031
for general services and the longer-term period from 2022 to 2041 for
engineered services (excluding Services Related to a Highway).
As detailed in Table A-11 and A-12, three categories of employment are
distinguished for the purposes of determining non-residential employment
and floorspace growth:
-
Population-related Employment is employment that primarily serves
the residential population and includes retail. The rate of growth of
Appendix A | 65
this category is generally linked to the rate of population growth in the
City.
-
Employment Land Employment refers to employment
accommodated primarily in low-rise industrial-type buildings located
within the City's business parks and industrial areas.
-
Major Office Employment refers to office type employment
contained within freestanding buildings relating professional uses
including but not limited to finance and insurance, scientific and
technical, health care etc.
An assumed floorspace per worker (FSW) for each category is applied to the
employment forecast in order to estimate the amount of associated GFA.
Work at Home/No Fixed is not included in the employment categories
because there is no dedicated floorspace per worker. The following FSW
assumptions are used:
Population-related
55 m2 per employee
Employment Land
100 m2 per employee
Major Office
35 m2 per employee
The non-residential floorspace forecast is summarized in Table A-12. The
total floorspace growth is forecast at 144,650 square metres over the ten-
year period and 287,800 square metres over the longer term to 2041. Most
new employment is expected to be Population-related Employment to 2041
at 187,550 square meters of new floor area.
iii.
Consideration for Area-Rated Services
In accordance with the recent changes to s.10(2) of the DCA, a development
charge background study must give consideration for "the use of more than
one development charge by-law to reflect different needs for services in
different areas". Following consultation with City staff, and in review of the
City's relevant master planning documents, it was determined that a
Appendix A | 66
municipal-wide approach continues to be most appropriate for the nature of
the works and services provided in Orillia, and as such, only a City-wide
charge has been proposed.
For all of the development charge eligible services that the City provides, the
full range of capital facilities, land, equipment and infrastructure is available
throughout the City. All residents therefore have access to all facilities. A
widely accepted method for recovering the development-related capital
costs for such services is to apportion them over all new development
anticipated in the City.
The table below provides a summary of the needs for servicing in different
areas.
City Services
Considered
Needs for Servicing in Different Areas
General
Services
-
Services such as Library, Indoor Recreation, Parks and
Social Housing are open and accessible to all residents
in the City and are driven and planned for based on
City-wide population growth.
-
For Fire, Environmental Services & Operations, Parking,
Transit and Paramedic Services these services are
provided to all residents and employees in the City and
are driven and planned for based on City-wide
population or population and employment growth.
Engineered
Services
-
Linear infrastructure services such as Roads & Related,
Sewer, Water and Storm water are provided through a
City-wide network and is planned based on City-wide
population and employment growth.
Appendix A | 67
This t
able p
rovides
a summ
ary of histor
ical p
opulation,
occupi
ed househo
lds, a
nd employm
ent by
place of wor
k be
tween 2
006 an
d
2021
. Also
inclu
ded
are per
sons
per un
it f
igure
s and t
he a
ctivit
y ra
te.
Appendix A | 68
This table includes
information on dat
a taken Censu
s Ca
nada and C
anada
Mortgage and
Hou
sing Corpo
ratio
n (C
MHC
)
be
twe
en 2
012
an
d 202
1. T
he
maj
or
ity
of
occu
pie
d hou
seho
lds
ar
e
sin
gle
and
semi
-deta
ched
ho
mes
,
fol
lowe
d by
ro
ws, t
hen
apa
rtm
en
ts.
Appendix A | 69
This table provides
details on histori
cal occupancy
pat
terns for
perma
nently occupi
ed h
ouseholds
in th
e Ci
ty of
Orilli
a.
Appendix A | 70
This table shows the Municipality's
annual growth in oc
cupied househ
olds
by unit t
ype b
etween 2012 a
nd 2
021.
Appendix A | 71
This table provides de
tails on
historic
al househ
olds by p
eriod of
construct
ion betwe
en pre 19
45 and 20
16. The t
able hig
hlights d
welli
ngs by unit type including singles and semis, rows, apartments, and duplexes
Appendix A | 72
This table
illust
rates hist
orical
data
relat
ed to work em
ployme
nt from 2
011 to
2021.
Types
of w
ork in
clude
popula
tion-rel
ated,
employme
nt lan
d, w
ork at
home/
no fix
ed p
lace of
wor
k.
Appendix A | 73
This t
able s
hows the
popul
ation and dwe
lling unit
forec
ast between
2022
and 2041.
Refe
rencing
Ori
llia's
Land
Need
s As
sessmen
t fr
om 2021
, th
e tab
le i
ncludes
cen
ses pop
ulat
ion,
occu
pied ho
useh
olds, a
nd a
verag
e ho
usehold
siz
es.
Appendix A | 74
This table provides
a forecast o
f dw
elling uni
ts by
type from 20
22 t
o 2041 whi
le hi
ghli
ghting
the s
hares
by unit
typ
e.
Appendix A | 75
This
table shows t
he f
orecast of
house
hold
gro
wth
b
y un
it t
ype
from
2
022
to 2
041
incl
ud
ing
sing
les
and
se
mis,
row
s, a
nd a
pa
rtme
nts.
Appendix A | 76
This
table provide
s a
population
growth
in n
ew h
ouse
ho
lds
by u
nit
type
i
nclu
ding
sin
gles
a
nd s
emis
, ro
ws,
an
d ap
artm
ents
bet
we
en 2
022
and
2041
.
Appendix A | 77
This table
illust
rates the
employ
ment
foreca
st by place o
f work
over the
plann
ing per
iod fr
om 2
022 to
2041.
Types
of work
inclu
de popul
ation-
related, empl
oyme
nt lan
d, w
ork at
ho
me/no
fi
xed
pla
ce of w
ork.
Appendix A | 78
This table shows the non-re
sidential s
pace forec
ast f
rom 2022
to 2041.
The non
-res
identi
al space
is
measure
in sq
ua
red met
res
and inc
ludes
po
pulatio
n-re
lated,
employ
me
nt land
, an
d major
offic
e.
Appendix A | 79
Appendix B
General Services
Technical Appendix
Appendix B | 80
General Services Technical Appendix
Introduction and Overview
The following appendix provides the detailed analysis undertaken to
establish the development charge rates for each of the general services in
the City of Orillia. Ten general services have been analysed as part of the
development charges study:
Appendix B.1
Library Services
Appendix B.2
Fire Services
Appendix B.3
Indoor Recreation
Appendix B.4
Parks Development, Facilities & Fleet
Appendix B.5
Services Related to a Highway: Public
Works
Appendix B.6
Transit
Appendix B.7
Waste Diversion Services
Appendix B.8
Paramedic Services
Appendix B.9
Long Term Care
Every service, with the exception of Transit, contains a set of three tables.
The tables provide the background data and analysis undertaken to arrive at
the calculated development charge rates for that particular service. An
overview of the content and purpose of each of the tables is given below.
Table 1
Historic Service Levels
Table 1 presents the data used to determine the fifteen-year historic service
level. The DCA and O. Reg. 82/98 require that development charges be set
at a level no higher than the average service level provided in the City. This
Appendix B | 81
must be done over the fifteen-year period immediately preceding the
preparation of the background study, on a service-by-service basis. For the
purpose of this study, the historic inventory period has been defined as 2007
to 2021.
O. Reg. 82/98 requires that when defining and determining historic service
levels both the quantity and quality of service be taken into consideration. In
most cases, the service levels are initially established in quantitative terms.
For example, service levels for buildings are presented in terms of square
feet. The qualitative aspect is introduced by considering the monetary value
of the facility or service. In the case of buildings, for example, the cost would
be shown in terms of cost per square foot to replace or construct a facility of
the same quality. This approach helps to ensure that the growth-related
capital facilities that are to be funded by new growth reflect not only the
quantity (number and size) but also the quality (replacement value or cost)
of service provided by the City in the past. Both the quantitative and
qualitative aspects of service levels used in the current analysis are based
on information provided by municipal staff. This information is generally
based on historical records and experience with costs to acquire or
construct similar facilities, equipment and infrastructure.
The final page of Table 1 shows the calculation of the "maximum allowable",
net of uncommitted excess capacity. The maximum allowable is defined as
the fifteen-year historic service level (expressed as either $/capita or
$/population & employment) multiplied by the forecast increase in net
population growth, or net population and employment growth, over the
planning period. The resulting figure is the value of capital infrastructure
that must be constructed for that particular service so that the fifteen-year
historic service level is maintained.
There is also a requirement in the DCA to consider "excess capacity" within
the City's existing infrastructure that may be available to partially meet the
future servicing requirements. If Council has expressed its intent before or
Appendix B | 82
at the time the capacity was created to recoup the cost of providing the
capacity from new development, it is considered "committed excess
capacity" under the DCA, and the associated capital cost is eligible for
recovery. The development of the capital programs takes into consideration
any available, or useable, servicing capacity with existing infrastructure.
Should uncommitted excess capacity exist, it is determined whether or not
this capacity will be available to service new development, and if so,
deductions to maximum allowable funding envelope are required.
Table 2
2022 - 2031 Development-Related Capital Program
& Calculation of the Unadjusted Development
Charge
The DCA requires that Council express its intent to provide future capital
facilities to support future growth. Based on the growth forecasts presented
in Appendix A, Hemson Consulting in collaboration with City staff has
developed a development-related capital program which sets out the
projects required to service anticipated growth for the ten-year period from
2022 to 2031.
A replacement share occurs when a new facility will, at least in part, replace
a facility that is demolished, redeployed or will otherwise not be available to
serve its former function. The replacement share of the capital program is
not deemed to be development-related and is therefore removed from the
development charge calculation. The capital cost for replacement will
require funding from non-development charge sources, typically property
taxes or user fees.
Although deemed development-related, not all of the net development-
related capital program may be recoverable from development charges in
the period from 2022 to 2031. For some of the services, a portion of the
capital program will service growth that will not occur until after 2031. This
Appendix B | 83
portion of the capital program is either deemed "pre-built" service capacity
to be considered as committed excess capacity to be recovered under future
development, or is a service level increase.
The remaining portion of the net capital program represents the
development-related cost that may be included in the development charge.
In all cases, as required, this amount is equal to or less than the maximum
allowable capital amount as calculated on the final page of Table 1. The
result is the discounted development-related net capital cost that is eligible
for recovery against growth over the period from 2022 to 2031.
Calculation of the Unadjusted Development Charge Rates
The section below the capital program displays the calculation of the
"unadjusted" development charge rates. The term "unadjusted"
development charge is used to distinguish the charge that is calculated prior
to cash flow financing considerations. The cash flow analysis is shown in
Table 3.
The first step when determining the unadjusted development charge rate is
to allocate the growth-related net capital cost between the residential and
non-residential sectors. For all general services with the exception of Library
Service, Parks and Recreation, Waste Diversion Services, and Long-Term
Care, the growth-related costs have been apportioned as 73 per cent
residential and 27 per cent non-residential. This apportionment is based on
the anticipated shares of census population and employment growth over
the ten-year forecast period.
The development-related costs associated with the Library Service, Parks
and Recreation, Waste Diversion Services, and Long-Term Care have been
allocated 100 per cent to the residential sector because the need for these
services is generally driven by residential development.
Appendix B | 84
The residential share of the 2022-2031 DC eligible costs are then divided by
the forecast population growth in new units. This gives the unadjusted
residential development charge per capita. The non-residential growth-
related net capital costs are divided by the forecast increase in non-
residential gross floor area (GFA). This yields a charge per square metre of
new non-residential GFA.
Table 3
Cash Flow Analysis
A cash flow analysis is also undertaken to account for the timing of projects
and receipt of development charges. Interest earnings or borrowing costs
are, therefore, accounted for in the calculation as allowed under the DCA.
Based on the growth forecast, the analysis calculates the development
charges rate that is required to finance the net development-related capital
spending plan including provisions for any borrowing costs or interest
earnings on the reserve funds. The cash flow analysis is designed so that
the closing cash balance at the end of the planning period is as close to nil
as possible.
In order to determine appropriate development charges rates reflecting
borrowing and earnings necessary to support the net development-related
funding requirement, assumptions are used for the inflation rate and interest
rate. An inflation rate of 2.0 per cent is used for the funding requirements,
an interest rate of 3.5 per cent is used for positive opening balances, and a
rate of 5.5 per cent is used for negative opening balances.
Table 3 displays the results of the cash flow analysis and provides the
adjusted or final per capita residential and per square metre (of GFA) non-
residential development charges.
Appendix B | 85
Appendix B.1
Library Services
Appendix B | 86
Library Services
The Orillia Public Library provides library services from its central branch at
36 Mississaga Street West. The branch was relocated to 500 Gill Street in
2010 and was used as a temporary location until the construction of the
Orillia Public Library was completed in the summer of 2012. The Library
provides a wide range of resources in a variety of formats as well as a
number of programs to the residents of the City and the Townships of
Severn and Oro-Medonte. The City provides library membership to the two
Townships and the City accounts for 75% of the usage of the library
facilities. The values discussed in the text below represent the City of
Orillia's share.
Table B.1-1 2007 - 2021 Historic Service Levels
Table B.1-1 displays the Library Board fifteen-year historic inventory for
buildings, land, materials, and furniture and equipment (excluding computer
equipment). To account for the usage of the library facilities by residents from
the Townships of Severn and Oro-Medonte, 25% of the value of the inventory
has been removed from the level of service calculation. This percentage is
based upon a contract signed between the City and the Townships. All values
expressed herein represent the City's share only, at 75%.
The total Orillia Public Library has a gross floor area of 39,085 square feet. A
share of the library, 2,976 square feet, is considered committed excess
capacity and has been netted out from the total square feet thus meaning
the total square footage net of excess capacity is 36,085 square feet. The
total replacement value of the library buildings is $25.62 million net of
excess capacity. Orillia's share of the library buildings is valued at $19.22
million. The library building occupies approximately 0.50 hectares of land
worth $400,000, of which the City of Orillia's share makes up $300,000. The
City's share of the collection materials is valued at $2.25 million and the
Appendix B | 87
City's share of furniture and equipment associated with the branch is valued
at $1.55 million.
The 2021 full replacement value of the inventory of capital assets for library
services for the City amounts to $23.31 million and the fifteen-year historic
average service level is $575.35 per capita.
The historic service level multiplied by the ten-year forecast of net
population growth results in a ten-year maximum allowable funding
envelope of $3.07 million (5,340 net population growth X historic service
level of $575.35/capita).
Table B.1-2 2022 - 2031 Development-Related Capital
Program & Calculation of the Unadjusted
Development Charge
The first project in the Library capital program is for the recovery of the
committed excess capacity. As discussed above, the negative reserve fund
balance relates to the funding of the Orillia Public Library which opened in
June 2012. The negative DC reserve fund balance for the Library Board
amounts to $1.54 million.
The remainder of the Library Board capital program includes a new sorter
for $70,000, and additions to the collection materials for $504,900. $42,000
has been removed from the eligible costs as Benefit to Existing (BTE) shares
for the new sorter as the City is upgrading and replacing three bins and
adding two new ones. Therefore, the total DC eligible costs for these new
projects is $532,900.
Approximately $2.08 million of the DC costs are eligible for in-period
recovery, and is allocated entirely against future residential development in
the City of Orillia. This results in an unadjusted development charge of $332
per capita.
Appendix B | 88
Table B.1-3 Cash Flow and Reserve Fund Analysis
The current balance in the Library Board development charge reserve fund
is in a deficit of $1.54 million and that is shown as the opening balance.
After cash flow, the residential calculated charge increases to $379 per
capita. The increase reflects the front-ended nature of the capital program.
The following table summarizes the calculation of the Library Board
development charge:
10-year Hist.
Service Level
per capita
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$575.35
$2,119,585
$2,077,585
$332
$0.00
$379
$0.00
LIBRARY SERVICES SUMMARY
Development-Related Capital Program
2022 - 2031
Unadjusted
Adjusted
Development Charge
Development Charge
Appendix B | 89
This table show
s the 15-year historical ser
vice level and f
unding en
velope ca
lculations
for
Libr
ary
Serv
ices
.
Appendix B | 90
Continuation of
the 15-year historical serv
ice level and fu
nding env
elope cal
culations for Libr
ary
Serv
ices
.
Appendix B | 91
Conclusion of 1
5-year historical service lev
el and funding e
nvel
ope
calc
ulat
ions
for
Lib
rary
Ser
vice
s
.
Appendix B | 92
This
table s
how
s the
development-relate
d capi
tal pro
gram for Librar
y Service
s.
Appendix B | 93
This table
displays the res
ults
of
the
cash
flo
w an
alys
is f
or L
ibra
ry Se
rvices.
Appendix B | 94
Appendix B.2
Fire Services
Appendix B | 95
Fire Services
The Orillia Fire Department operates from two stations: the Main Hall which
was located on West Street until 2014 after which it was relocated to 500
Gill Street, at which time there was the addition of a Headquarters, and the
Substation on Commerce Road. The Department is responsible for Fire
prevention inspections, public education sessions, communications
(including dispatching), and Fire suppression.
Table B.2-1 2007 - 2021 Historic Service Levels
The Fire Services' current inventory of capital assets includes two Fire
stations. The combined area of the stations is 27,400 square feet. Fire
Station 1, Headquarters, includes 151 square feet of committed excess
capacity and is excluded from the total. The net area of the stations is
27,249 square feet, and the net values of the stations used in the service
level calculations is $12.53 million.
The land area associated with the buildings is roughly 1.38 hectares and is
valued at $1.10 million. The total value of furniture and equipment is $2.83
million. Finally, the 12 vehicles associated with the stations have a
replacement value of $7.50 million.
The current replacement value of the Fire Services capital infrastructure is
$23.88 million. It has provided the City with a fifteen-year average service
level of $418.75 per population and employment.
The historic service level multiplied by the ten-year forecast of net
population growth results in a ten-year maximum allowable funding
envelope of $3.20 million (7,650 net population and employment growth X
historic service level of $419/capita).
Appendix B | 96
Table B.2-2 2022 - 2031 Development-Related Capital
Program & Calculation of the Unadjusted
Development Charge
The 2022 to 2031 development-related capital program for Fire is consistent
with the Council-approved 2022 and 2023 capital budget, and follows the
identified needs in West Orillia contained in the Fire Protection Services
Master Plan 2017.
The first project in the Fire Services capital program is for the recovery of
the committed excess capacity. The negative reserve fund balance relates to
the committed excess capacity in Fire Station 1, Headquarters, which was
opened in 2015. The negative DC reserve fund balance for Fire Services
amounts to $554,525 and this full amount is brought forward for recovery
through development charges.
A new station will be constructed in 2031 which will provide the opportunity
to offer emergency services to Oro-Medonte and Severn Townships through
a Fire Services Agreement. Both of these areas are growing faster than the
City of Orillia in accordance with the City's Fire Department Fire Protection
Services Master Plan, 2017. The cost of equipment for the new Fire station
in West Orillia is $8.00 million, of which, the benefit to existing share is $4.00
million and 50% of the project will benefit in-period growth.
The cost of Live Fire/Ventilation Training and Communication System
Enhancement will be $40,000 and $25,000. The total DC eligible cost will be
$0 as these projects are replacements.
A Next Generation 911 Communication System will be added in 2023 for a
total cost of $265,000 of which, the benefit to existing share is $230,197
(87%) as it is in part a service level enhancement. The total DC eligible cost
is $34,803, all of which is considered to be eligible for in-period recovery.
Appendix B | 97
Of the $6.38 million 2022-2031 DC costs, $3.20 million is eligible for in-
period recovery, with the remaining $3.17 million as a post-2031 share to be
recovered in future development charge studies.
The costs are allocated 73 per cent, or $2.34 million, against residential
development, and 28 per cent, or $862,866, against non-residential
development. The allocation between residential and non-residential
development is based on shares of forecasted growth. The resulting
unadjusted development charge is $374 per capita for residential and $5.97
per square metre for non-residential.
Table B.2-3
Cash Flow Analysis
The current balance in the Fire Services development charge reserve fund is
in a deficit, thus negative $405,200 is shown as the opening balance in the
residential cash-flow and negative $149,400 is shown as the opening
balance in the non-residential cash-flow.
After cash flow consideration, the residential charge increases to $375 per
capita and the non-residential charge increases to $5.99 per square metre.
The increase reflects the timing of capital expenditures and development
charge revenues.
The following table summarizes the calculation of the Fire Services
development charge.
10-year Hist.
Service Level
per pop & emp
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$418.75
$10,671,525
$3,203,438
$374
$5.97
$375
$5.99
Development-Related Capital Program
Development Charge
Development Charge
FIRE SERVICES SUMMARY
2022 - 2031
Unadjusted
Adjusted
Appendix B | 98
T
his table shows
the 15-year historical ser
vice level an
d funding
envelope
calculation
s fo
r Fi
re S
ervi
ces.
Appendix B | 99
Continuation
of the tab
le showing the
15-year historical service
level and fun
ding env
elope cal
culations fo
r Fi
re S
ervi
ces.
Appendix B | 100
Conclusion o
f the table
showing the 15
-year historical service leve
l and funding
env
elop
e ca
lcul
atio
ns f
or F
ire
Serv
ices
.
Appendix B | 101
This
table s
how
s the
development-relate
d capi
tal pro
gram for Fire S
ervices.
Appendix B | 102
This table d
isplays the
results of t
he c
ash
flow
ana
lysi
s fo
r Fi
re S
ervi
ces
for R
esidential
Appendix B | 103
This table d
isplays the
results of t
he c
ash
flow
ana
lysi
s fo
r Fi
re S
ervi
ces
- Non
Residential.
Appendix B | 104
Appendix B.3
Indoor Recreation
Appendix B | 105
Indoor Recreation
The City of Orillia Recreation Department is responsible for the indoor
recreation and leisure needs of the community, including the provision and
maintenance of arenas, facilities, recreation services and programs to the
residents of Orillia and surrounding area. The City currently offers indoor
recreation services from 5 major facilities; the Brian Orser Arena, the Forest
Home Community Hall, the Barnfield Point Recreation Centre, the Rotary
Place, and the Orillia Recreation Centre. As of 2014, the Orillia Community
Centre was no longer in service and in 2021 the Orillia Recreation Centre
opened.
Table B.3-1
2007 - 2021 Historic Service Levels
Table B.3-1 displays the Indoor Recreation fifteen-year historic inventory for
buildings, land, and equipment. The building space amounts to 304,060
square feet, valued at $92.88 million. The land associated with the buildings
amount to 12.66 hectares, and is valued at $10.13 million. The equipment
found in the facilities has a total value of $352,000.
The 2021 full replacement value of the inventory of capital assets for Indoor
Recreation amounts to $103.36 million and the fifteen-year historic average
service level is $1,798.35 per capita.
The historic service level multiplied by the ten-year forecast of net
population growth results in a ten-year maximum allowable funding
envelope of $9.60 million (5,340 net population growth X historic service
level of $1,798/capita).
Appendix B | 106
Table B.3-2 2022 - 2031 Development-Related Capital Program &
Calculation of the Unadjusted Development Charge
The 2022 - 2031 development-related capital program for Indoor Recreation
amounts to $52.92 million.
The Indoor Recreation capital program includes recovery of the Orillia
Recreation Complex Growth-Share which amounts to $52.84 million. About
87 per cent of the complex, or $45.90 million, is considered to be of benefit
to the existing residents. The remaining $6.94 million is considered growth
related. Of this amount $554,511 is allocated to prior growth and available
DC reserves, while the rest of the costs are considered to benefit
development within the planning period.
The City will also purchase $80,000 in fitness equipment over the ten-year
planning period to service new growth.
The total 2022 - 2031 DC costs eligible for recovery amount to $7.02 million
which is allocated entirely against future residential development in the City of
Orillia. This results in an unadjusted development charge of $1,032 per capita.
Table B.3-3 Cash Flow and Reserve Fund Analysis
After cash flow and reserve fund consideration, the residential calculated
charge increases to $1,102 per capita. This is a reflection of the timing of
the capital program and development charges revenues.
The following table summarizes the calculation of the indoor recreation
development charge:
10-year Hist.
Service Level
per capita
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$1,798.35
$52,922,000
$6,465,348
$1,032
$0.00
$1,102
$0.00
2022 - 2031
Unadjusted
Adjusted
INDOOR RECREATION SUMMARY
Development-Related Capital Program
Development Charge
Development Charge
Appendix B | 107
This table show
s the 15-year historical se
rvice level and f
unding en
velope ca
lculations fo
r In
door
Rec
reat
ion.
Appendix B | 108
Conclusion of t
he table showing the 15-year
historical servic
e le
vel
and
fund
ing
enve
lope
cal
cula
tion
s fo
r In
door
Rec
reat
ion
.
Appendix B | 109
This
table s
how
s the
development-relate
d capi
tal pro
gram for Indoor
Recreati
on.
Appendix B | 110
This table d
isplays the
results of the c
ash
flow
ana
lysi
s fo
r In
door
Rec
reat
ion
Appendix B | 111
Appendix B.4
Park Development, Facilities & Fleet
Appendix B | 112
Park Development, Facilities & Fleet
The City of Orillia Parks Department is responsible for the recreation and
leisure needs of the community, including the provision and maintenance of
parks to the residents of Orillia. The City offers 221.35 hectares of
developed parkland and an array of parks facilities including playgrounds,
soccer fields and baseball diamonds.
Table B.4-1
2007 - 2021 Historic Service Levels
Table B.4-1 displays the Parks fifteen-year historic inventory for developed
park facilities, parkland, park buildings and parks fleet. The Parks facilities
include 30 plaground with a replacement value of $9.26 million. The facilities
also include range of amenities such as sports fields, play equipment and
trails, which have a value of $21.71 million.
The Parks department is also responsible for outdoor parks buildings, such
as washrooms, greenhouses, work sheds, pavilions, and picnic shelters. All
of the parks buildings amount to a square footage of 39,791 and are valued
at $16.73 million.
The developed parkland amounts to 221.35 hectares and has a replacement
value $34.04 million.
The parks fleet and equipment list is extensive at 140 line items. This
inventory adds $4.47 million to the Parks service level inventory.
The 2021 full replacement value of the inventory of capital assets for the
Parks department amounts to $86.21 million and the fifteen-year historic
average service level is $2,396.36 per capita.
The historic service level multiplied by the ten-year forecast of net
population growth results in a ten-year maximum allowable funding
Appendix B | 113
envelope of roughly $12.80 million (5,340 net population growth X historic
service level of $2,396/capita).
Table B.4-2 2022 - 2031 Development-Related Capital
Program & Calculation of the Unadjusted
Development Charge
The 2022-2031 gross development-related capital program for the Park
Development department amounts to $52.07 million.
The first project in the Parks department capital program is for the recovery
of the committed excess capacity. The negative reserve fund balance relates
to the committed excess capacity created from recent additions to the
capital inventory. The negative DC reserve fund balance for the Parks
Development department amounts to $2.73 million.
The second section of the Parks Development capital program is the new
parks facilities in the capital plan. Some new major parks facilities projects
include the James Street Works Garage, the Foundary Park Skatepark and
Playground, the Couchiching Beach Parking Lot Expansion, the Additional
Yard in West Orillia, and several park upgrades. The cost of the James Street
Works Garage and the Additional Yard in West Orillia is split between
multiple services. The other services' share of these projects is shown as a
recovery. It is anticipated that the gross project cost will be $44.08 million
for parks facilites. $24.94 million of this recovery will be recovered through
grants, subsidies, and other services' shares. The costs will be reduced by
$6.75 million for the replacement shares, leaving the total DC eligible share
as $12.39 million. Of that $12.39 million, $7.39 million will be in-period, with
the post-period share amounting to $5.00 million.
The third section consists of new trail development. It is anticipated the
gross project costs will sum up to $3.43 million for various trail development
projects across Orillia. The replacement share is $1.99 million of the total
Appendix B | 114
annual cost. The post-period benefit amounts to $890,359 and the total
capital program share within the 2022-2031 period is $494,137 for new trail
development.
The remaining projects are related to the parks and recreation fleet. Some of
these vehicles and equipment are shared between services. Thus, other
services' portion of the capital cost are included as recoveries. Certain
projects, like the Operational Management System and some servicing
equipment and vehicles have BTE as they provide some service level
enhancement for existing residents. It is anticipated the gross project costs
will sum up to $1.83 million, of which $1.16 million is recoveries. The BTE
and replacement share is $124,625 of the net municipal cost. The post-
period benefit amounts to $262,000 and the total capital program within the
2022-2031 period is $279,872.
The 2022-2031 DC parks related costs eligible for recovery amount to
$10.89 million which is allocated entirely against future residential
development in the City of Orillia. This results in an unadjusted development
charge of $1,738 per capita.
Table B.4-3
Cash Flow and Reserve Fund Analysis
After cash flow and reserve fund consideration, the residential calculated
charge increases to $1,825 per capita. This is a reflection of the timing of
the capital program and development charges revenues.
The following table summarizes the calculation of the parks development
charge:
10-year Hist.
Service Level
per capita
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$2,396.36
$52,070,207
$10,892,428
$1,738
$0.00
$1,825
$0.00
PARK DEVELOPMENT, FACILITIES & FLEET SUMMARY
Unadjusted
Adjusted
Development Charge
Development Charge
2022 - 2031
Development-Related Capital Program
Appendix B | 115
.
Appendix B | 116
Continuation of
the table showing the 15-y
ear historical service level and fun
ding envelope
calculations fo
r Parks D
evelopmen
t, F
acil
itie
s, a
nd F
leet
.
Appendix B | 117
Continuation of
the table showing the 15-y
ear historical service level and fun
ding envelope cal
culations for
Parks Dev
elopment, Fac
ilit
ies,
and
Fle
et
.
Appendix B | 118
Continuation of
the table showing the 15-y
ear historical service level and fun
ding enve
lope calculations
for Parks
Developm
ent,
Fac
ilit
ies,
and
Fle
et
.
Appendix B | 119
Continuation of
the table showing the 15-y
ear historical service level and fun
ding
envelope ca
lculation
s for Parks
Deve
lopm
ent,
Fac
ilit
ies,
and
Fle
et
.
Appendix B | 120
Continuation of
the table showing the 15-y
ear historical service level and fun
ding
envelope ca
lculation
s for Parks
Deve
lopm
ent,
Fac
ilit
ies,
and
Fle
et
.
Appendix B | 121
Continuation of
the table showing the 15-y
ear historical service level and fun
ding
envelope ca
lculation
s for Parks
Deve
lopm
ent,
Fac
ilit
ies,
and
Fle
et
.
Appendix B | 122
Continuation of
the table showing the 15-y
ear historical service level and fun
ding
envelope ca
lculation
s for Parks
Deve
lopm
ent,
Fac
ilit
ies,
and
Fle
et
.
Appendix B | 123
Continuation of
the table showing the 15-y
ear historical service level and fun
ding
envelope ca
lculation
s for Parks
Deve
lopm
ent,
Fac
ilit
ies,
and
Fle
et
.
Appendix B | 124
Conclusion of t
he table showing the 15-year
historical service level and funding
env
elop
e ca
lcul
atio
ns f
or P
arks
Dev
elop
ment
, Fa
cili
ties
, an
d Fleet
.
Appendix B | 125
This
table s
how
s the
development-relate
d capi
tal pro
gram for Parks
Developme
nt, Facilit
ies, and Fl
eet.
Appendix B 126
Concl
usion o
f t
he ta
ble showing the dev
elopme
nt-rela
ted capital pro
gram for
Parks Devel
opment, Fac
ilities, an
d Fleet.
Appendix B | 127
This table d
isplays the
results of the cash flow analysis f
or P
arks
Dev
elop
ment
, Fa
cili
ties
, an
d Fl
eet
Appendix B | 128
Appendix B.5
Services Related to a Highway: Public
Works
Appendix B | 129
Services Related to a Highway: Public
Works
The City of Orillia Services Related to a Highways is divided into two major
areas of responsibilities: Public Works and Roads. This section deals with
the capital infrastructure of Services Related to a Highway: Public Works.
Table B.5-1
2007 - 2021 Historic Service Levels
The fifteen-year historic inventory of capital assets for Public Works
includes 48,562 square feet of building space with a replacement value of
$7.73 million. The 2.00 hectares of land associated with the Public Works
buildings are valued at $1.60 million, furniture and equipment amounts to
$825,500, and the Public Works fleet include 124 vehicles and adds an
additional $19.14 million to the value of the capital assets (net of commited
excess capacity).
The total replacement value of the Public Works capital infrastructure is
estimated to be $29.30 million. The fifteen-year historic average service
level is $506.47 per capita and employment and this, multiplied by the ten-
year forecast net population and employment growth (7,650), results in a
ten-year maximum allowable of $3.87 million.
Table B.5-2 2022 - 2031 Development-Related Capital
Program & Calculation of the Unadjusted
Development Charges
The 2022 to 2031 development-related capital program for Public Work is
consistent with the 2022 and 2023 capital budget.
Appendix B | 130
The first project in the Public Works capital program is for the recovery of
the negative reserve fund balance. The negative DC reserve fund balance for
Public Works amounts to $269,064 and this full amount is brought forward
for recovery through development charges.
The rest of the Public Works development related capital program consists
of operations, fleet, and space capital. This includes the Public Works
portion of the cost of the James Street Works Garage and the Additional
Yard in West Orillia. These projects are split between multiple services
(shown as a recovery). The rest of the costs are new or upgraded service
vehicles, and operational upgrades. It is anticipated that the gross project
costs will sum up to $33.14 million with $9.06 million in recoveries. The BTE
and replacement share is $1.55 million of the cost. The post-period benefit
amounts to $20.15 million and the total DC-eligible capital program within
the 2022-2031 period is $2.38 million.
Of the total $22.80 million eligible DC costs, $2.65 million is eligible for in-
period recovery, with the remaining $20.15 million as a post-2031 share to
be recovered in future development charge studies.
The costs are allocated 73 per cent, or $1.93 million, against residential
development, and 28 per cent, or $712,741, against non-residential
development. The allocation between residential and non-residential
development is based on shares of forecasted growth. The resulting
unadjusted development charge is $309 per capita for residential and $4.93
per square metre for non-residential.
Table B.5-3 Cash Flow and Reserve Fund Analysis
After cash flow and reserve fund analysis, the residential calculated charge
increases to $331 per capita and the non-residential charge increases to
$5.31 per square metre for Public Works. This is a reflection of the timing of
the capital program and development charges revenues.
Appendix B | 131
The following table summarizes the calculation of the Services Related to a
Highway: Public Works development charge.
10-year Hist.
Service Level
per pop & emp
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$506.47
$33,409,064
$2,646,089
$309
$4.93
$331
$5.31
2022 - 2031
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Development Charge
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS SUMMARY
Appendix B | 132
This table show
s the 15-year historical se
rvice level and funding envelope calculatio
ns for Se
rvices Re
lated to a Hi
ghwa
y: P
ubli
c Wo
rks.
Appendix B | 133
Continuation of
table showing the developm
ent-related capital program for Services Re
lated
to a Hig
hway: Publi
c Wo
rks
.
Appendix B | 134
Continuation of
the table showing the 15-y
ear historical service level and funding en
velop
e calcula
tions for S
ervi
ces
Rela
ted
to a
Hig
hway
: Pu
blic
Wor
ks
.
Appendix B | 135
Continuation of
the table showing the 15-y
ear historical service level and funding en
velop
e calcula
tions for S
ervi
ces
Rela
ted
to a
Hig
hway
: Pu
blic
Wor
ks
.
Appendix B | 136
Continuation of
the table showing the 15-y
ear historical service level and funding en
velop
e calcula
tions for S
ervi
ces
Rela
ted
to a
Hig
hway
: Pu
blic
Wor
ks
.
Appendix B | 137
Conclusion of t
he table showing the 15-year
historical service level and funding envelo
pe c
alcu
lati
ons
for
Serv
ices
Rel
ated
to
a Hi
ghwa
y: P
ubli
c Wo
rks
.
Appendix B | 138
This
table s
how
s the
development-relate
d capi
tal pro
gram for Servic
es Relate
d to a High
way: Public
Works.
Appendix B | 139
This table d
isplays the
results of the cash flow analysis for Serv
ices
Rel
ated
to
a Hi
ghwa
y: P
ubli
c Wo
rks
- Res
idential
Appendix B | 140
This table d
isplays the
results of the cash flow analysis for Serv
ices
Rel
ated
to
a Hi
ghwa
y: P
ubli
c Wo
rks
- Non
-Residential.
Appendix B | 141
Appendix B.6
Transit
Appendix B | 142
Transit
Orillia Transit is owned by the City of Orillia and operated under contract by
TOK Transit Limited. There are six different routes, offering service to most
areas of the City.
Transit Ridership and Planned Level of Service
The City of Orillia currently operates six routes throughout the week. Details
on operating times and locations are outlined below, as posted on the Orillia
Transit website:
-
Terminal is located at West and Mississaga Streets.
-
Weekday service begins at 6:15 a.m. with final departures from the
terminal at 10:15p.m.
-
Saturday service begins at 8:45 a.m. with final departures from the
terminal at 7:45 p.m.
-
Sunday Service begins at 8:45 a.m. with final departures from the
terminal at 4:15 p.m.
-
Orillia Transit operates six bus routes departing the terminal at 15 and
45 minutes past the hour.
-
No service on Holidays.
Orillia Transit ridership has been growing steadily over the past few
years. The table below shows that in 2015 total yearly ridership was
837,640. By 2019 total ridership had increased to 855,180 riders. In 2020,
there was a slight drop in transit ridership that was likely COVID-19
related which was largely recoved in 2021 and it is anticipated will be
fully recovered by 2023. It is important to note that ridership figures are
estimates based on a sample of revenue generating passengers who paid
fares or purchased passes.
Appendix B | 143
Historical Transit Ridership
Year
Ridership (Revenue Passengers)
2015
837,640
2016
827,240
2017
829,970
2018
835,150
2019
855,180
2020
827,070
2021
841,746
Source: Operational Review of Orillia Transit Service and staff estimates.
Moving forward, the City expects transit ridership to continue to grow.
Generally, transit ridership is attributed to increase as population and
employment grows. As a result, ridership is expected to grow in proportion
to population and employment growth in the City. The Transit capital
program presented in Table 2 is therefore considered to reflect the planned
level of service.
Table B.6-1 2022 - 2031 Development-Related Capital
Program & Calculation of the Unadjusted
Development Charges
The Transit capital program includes the recovery of the negative reserve
fund balance. The negative reserve fund balance relates to the committed
excess capacity created from recent additions to the capital inventory. The
negative DC reserve fund balance for Transit services amounts to $410,352.
The remainder of the development-related capital plan for Transit Services
consists of 50 additional stops along the 6th Line valued at $10,000 and
additional equipment and buses valued at $8.26 million. About 30% costs of
the new 6th Line stops are to provide services to existing resident and 83% of
Appendix B | 144
the new transit equipment and bus costs are considered to benefit existing
residents. The City also plans on instituting a Transit Shelter program to
accommodate new development. Finally, a new Transit Terminal will be built
at a cost of $39.60 million, of which 90% of costs are considered to be
replacement related and 10% of which are considered capacity expansion.
The total gross costs for Transit amount to $48.60 million. The City of Orillia
has received a total of $12.12 million in grants and subsidies, which will
reduce the net municipal costs to $36.48 million. Replacement and BTE
shares amount to $32.18 million and $345,000 is considered post-2031
benefits. The 2022-2031 DC cost eligible for recovery of $3.96 million is
allocated 73 per cent, or $2.89 million against new residential development,
and 27 per cent, or $1.07 against non-residential development. This yields
an unadjusted development charge of $461 per capita and $7.37 per square
metre.
Table B.6-2
Cash Flow Analysis
After cash flow analysis, the residential charge increases to $529 per capita
and the non-residential charge increases to $8.50 per square metre. This is
a reflection of the timing of the capital program and development charges
revenues.
The following table summarizes the calculation of the Transit development
charge.
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$48,604,352
$3,956,352
$461
$7.37
$529
$8.50
2022 - 2031
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Development Charge
TRANSIT SUMMARY
Appendix B | 145
This
table s
how
s the
development-relate
d capi
tal pro
gram for Transi
t.
Appendix B | 146
This table d
isplays the
result
s of
the
cas
h fl
ow a
naly
sis
for
Tran
sit
- Res
idential
Appendix B | 147
This table d
isplays the
result
s of
the
cas
h fl
ow a
naly
sis
for
Tran
sit
- Non
-Residential
Appendix B | 148
Appendix B.7
Waste Diversion Services
Appendix B | 149
Waste Diversion Services
The DCA permits the Municipality to impose a development charge for
waste diversion services (i.e. not landfill or waste incineration).
Table B.7-1 2007 - 2021 Historic Service Levels
The fifteen-year historic inventory of capital assets for Waste Diversion
Services includes 4,670 square feet of building space with a replacement
value of $980,700. The 21.56 hectares of land associated with Waste
Diversion Services buildings are valued at $10.24 million, furniture and
equipment amounts to $26,400. Each of these calculations has netted off
the portion related to landfill operations at each site.
The total value of the Waste Diversion Services capital infrastructure is
estimated to be $11.25 million. The fifteen-year historic average service
level is $340.93 per capita this, multiplied by the ten-year forecast net
growth (5,340), results in a ten-year maximum allowable of $1.8 million.
Table B.7-2 2022 - 2031 Development-Related Capital
Program & Calculation of the Unadjusted
Development Charges
The Waste Diversion Services capital program includes the recovery of the
negative reserve fund balance. The negative reserve fund balance relates to
the committed excess capacity created from recent additions to the capital
inventory. The negative DC reserve fund balance for Waste Diversion
Services amounts to $457,155.
The development-related capital program includes a gross project cost of
$3.65 million related to facilities and land. These costs include site
assessment, site capping, a new depot, reporting costs, and works. The BTE
Appendix B | 150
share for these projects is $3.31 million and the 2022-2031 DC-eligible cost
is $335,000.
The development-related capital program also includes a gross project cost
of $450,000 for new multifunction equipment. These projects have no BTE
share. Therefore the total $450,000 cost is DC-eligible with all of it
considered in-period.
The total gross costs for Waste Diversion Services amount to $4.55 million.
Replacement and BTE shares amount to $3.31 million. Therefore, the total
2022-2031 DC-eligible cost is $1.24 million.
The 2022-2031 DC Waster Diversion Services related costs eligible for
recovery amount to $1.24 million which is allocated entirely against future
residential development in the City of Orillia. This results in an unadjusted
development charge of $198 per capita.
Table B.7-3
Cash Flow and Reserve Fund Analysis
After cash flow and reserve fund analysis, the residential calculated charge
increases to $215 per capita. This is a reflection of the timing of the capital
program and development charges revenues.
The following table summarizes the calculation of the Waste Diversion
Services development charge.
10-year Hist.
Service Level
per capita
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$340.93
$4,552,155
$1,242,155
$198
$0.00
$215
$0.00
WASTE DIVERSION SERVICES SUMMARY
2022 - 2031
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Development Charge
Appendix B | 151
This table show
s the 15-year historical se
rvice level and funding
envelope
calculati
ons for Waste
Div
ersi
on S
ervi
ces.
Appendix B | 152
Conclusion of T
able showing the 15-year hist
orical service level and
fun
ding
env
elop
e ca
lcul
atio
ns f
or W
aste
Div
ersi
on S
ervi
ces
.
Appendix B | 153
This
table s
how
s the
development-relate
d capi
tal pro
gram for Waste
Diversion
Services.
Appendix B | 154
This table d
isplays the
results of the cash flo
w an
alys
is f
or W
aste
Div
ersi
on S
ervi
ces
- Res
idential.
Appendix B | 155
Appendix B.8
Paramedic Services
Appendix B | 156
The City of Orillia and the City of Barrie receive Paramedic Services from the
County of Simcoe through a cost-sharing agreement and their shares are
based on weighted taxable assessment values of 6% and 26% respectively.
The County began delivering the Paramedic Services January 1, 2001 when
the Province downloaded this service delivery to Simcoe County. There are
currently 26 paramedic stations positioned among all of the lower-tier
Towns and Townships in the County.
Table B.8-1 2007 - 2021 Historic Service Levels
The Paramedic Services inventory of capital assets includes 26 paramedic,
space at the County's Administrative Centre in Midhurst, and the County's
warehouse. The combined building area of over 139,861 square feet, valued
at approximately $89.99 million (Orillia's share = $5.47 million). The
buildings occupy roughly 12.9 hectares of land which is valued at $17.38
million, (Orillia's share = $1.06 million). The 77 vehicles associated with the
paramedic stations in the County of Simcoe have a replacement value of
nearly $16.20 million (Orillia's share = $985,500). Station equipment adds
another $1.24 million to the inventory (Orillia's share = $75,300).
Orillia's share of the total current value of Paramedic Services capital
infrastructure including building, land, vehicles, furniture and equipment is
valued at approximately $7.59 million and has provided the City with a 15
year average historical service level of $84.05 per population and
employment. The calculated maximum allowable recoverable through
development charges is $642,983.
The County's obligation to meet adequate response times and quality of
service together with the recent growth in population and employment has
necessitated recent enhancements to the paramedic stations. This has
resulted in a notional excess capacity. However, as the excess capacity was
created to meet the demands of other legislation (i.e. Ambulance Act of
Appendix B | 157
Ontario Regulation 257/00), its value is not removed from the calculation of
the maximum allowable.
Table B.8-2 2022 - 2031 Development-Related Capital
Program & Calculation of the Unadjusted
Development Charges
The current arrangement of paramedic stations and service delivery is a
product of the evolution of separate systems existing prior to the transfer of
this service from the Province to the County. There is a need to develop a
model and plan to address growth, and ensuring the service is delivered in
the most efficient manner. The County has hired consultants to assist in
developing a facility model and the result was to implement a hub and spoke
approach. The development-related capital program for Paramedic Services
focuses on implementing this new approach to service delivery.
The County of Simcoe's Paramedic Services ten-year capital program
includes a number of new station construction, as well as a reorganization
and re-location of several existing stations. The County plans to construct a
centralized hub paramedic station as well as seven satellite posts. The land
acquisition costs total $11.46 million and the building construction costs
total an additional $31.93 million. Finally, additional emergency response
vehicles will be added to the current fleet. Total costs of these vehicles add
up to roughly $6.78 million.
The Paramedic DC reserve fund balance is in a negative position, and an
amount of $578,837 is included for recovery through DCs.
Altogether, the ten-year capital forecast for Paramedic Services amounts to
$50.74 million. The cost-sharing agreement states that the Cities of Barrie
and Orillia contribute roughly 26 per cent and 6 per cent of the total costs of
the projects respectively, the remainder being the County's share. An
amount of $41.56 million is identified as, "Grants, Subsidies, and Other
Appendix B | 158
Recoveries" represents the County's and Barrie's portion of the capital
program, and any grants or subsidies. These recoveries are netted off the
total gross project costs. Recognizing that some of the new stations being
constructed will result in the current station being closed, the appropriate
"replacement" shares have been netted off the total net costs. The total
"replacement" shares amount to $685,621 and this amount will not be
recovered through development charges.
The total DC eligible costs amount to $2.22 million of which $1.58 million, is
deemed to be post-period benefit, and will be considered for recovery in
subsequent development charges by-laws. The in-period DC-eligible share
amounts to $642,983.
The development-related cost is allocated 73 per cent, or $469,791, against
new residential development, and 27 per cent, or $173,191, against non-
residential development. This yields an unadjusted development charge of
$75 per capita and $1.20 per square metre.
Table B.8-3 Cash Flow Analysis
After cash flow analysis, the residential charge increases to $89 per capita
and the non-residential charge increases to $1.43 per square metre. This is
a reflection of the timing of the capital program and development charges
revenues.
The following table summarizes the calculation of the Paramedic Services
development charge.
10-year Hist.
Service Level
per pop & emp
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$84.05
$50,738,992
$642,983
$75
$1.20
$89
$1.43
PARAMEDIC SERVICES SUMMARY
2022 - 2031
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Development Charge
Appendix B | 159
This table show
s the 15-year historical ser
vice level and fun
ding envelope calculations for Paramedic Services.
Appendix B | 160
Continuation of
table showing the 15-year h
istorical service
leve
l and fun
ding envelop
e ca
lcul
atio
ns f
or P
aram
edic
Ser
vice
s
.
Appendix B | 161
Continuation of
table showing the 15-year h
istorical service
level an
d funding
envelope ca
lcul
atio
ns f
or P
aram
edic
Ser
vice
s
.
Appendix B | 162
Continuation of
table showing the 15-year h
istorical service
level and funding env
elope calcul
atio
ns f
or P
aram
edic
Ser
vice
s
.
Appendix B | 163
Conclusion of t
able showing the 15-year hist
orical service lev
el a
nd f
undi
ng e
nvel
ope
calc
ulat
ions
for
Par
amed
ic S
ervi
ces
.
Appendix B | 164
This
table s
how
s the developmen
t-rel
ated capital progra
m for
Paramed
ic Services.
Appendix B | 165
Concl
usion o
f t
he table showing
the
development-related
capit
al prog
ram for Paramed
ic Servic
es.
Appendix B | 166
This table d
isplays the
results of the ca
sh f
low
anal
ysis
for
Par
amed
ic S
ervi
ces
- Non
-Residential.
Appendix B | 167
This table d
isplays the
results of the ca
sh f
low
anal
ysis
for
Par
amed
ic S
ervi
ces
- Res
idential
Appendix B | 168
Appendix B.9
Long Term Care
Appendix B | 169
Long Term Care
Long term care facilities provide a range of long term care needs, from Life
Lease homes to assisted living suites, only assets and capital needs related
to long term care needs are included in the DC anlysis. The Long Term Care
component of this service is provided by Simcoe County and is based on a
cost sharing agreement with the Cities of Barrie and Orillia. Only the City of
Orillia's share of 10.84% is incorporated into the development charges
calculation.
Table B.9-1 Historical Service Levels
Table B.9-1 displays the fifteen-year historical inventory for buildings, land,
vehicles and furniture and equipment for Long Term Care. Long Term Care
services are provided at the manors, which are shared with the Cities of
Barrie and Orillia through a cost sharing agreement. In 2021, the County of
Simcoe's share was 78.9 per cent of the costs, Barrie's share was 10.23 per
cent, and Orillia's shares was 10.84 per cent. Orillia's service levels do not
include vehicles and furniture and equipment as those operational costs are
only incurred by the County.
Simcoe County provides long term care services from four manors. In 2021,
the total square footage of the manors was 497,104 with a replacement cost
share that amounts to $28.02 million. Georgian Village in Penetanguishene
was reconstructed and expanded in 2013 and has both a Manor and a
Village component. Common spaces in the facility have been split and
allocated to both the manor and village based on total facility gross floor
area.
The four manors occupy 10.45 hectares of land. The land for the manors is
valued at 13.28 million, of which $1.44 million is the City of Orillia's financial
responsibility.
Appendix B | 170
The 2021 combined replacement value of the City's share of the inventory of
capital assets for Long Term Care is $29.46 million. This results in a fifteen-
year historical average service level of $851.95 per capita. The historical
service level, multiplied by the ten-year net population growth (5,340),
results in a ten-year maximum allowable funding envelope of $4.55 million.
Table B.9-2 2022-2031 Development-Related Capital
Program & Calculation of the "Unadjusted"
Development Charges
The 2022 to 2031 development-related capital program includes the 2013
redevelopment of Simcoe Manor/Village and bed expansion for Georgian
Manor. In total, the Long Term Care capital program amounts to $104.16
million, with a net municipal cost of $8.21 million. The City of Barrie and
Simcoe County's shares of these projects have been netted off as a recover.
The portion of the Simcoe Manor/Village redevelopment that is for new
affordable housing has also been included in the recovery total.
Of the net municipal cost, $7.03 million, 86 per cent of the net municipal
cost has been identified as replacement or benefit to existing. The
redevelopment project includes a mix of redevelopment of existing beds and
space and net new additional space to service development.
The remaining $1.28 million is related to development in the 2022-2031
planning period and is eligible for DC recovery. It is noted that the
residential DC eligible capital costs are divided by the ten-year growth in
population in new dwelling units (6,266) to derive an unadjusted charge of
$202 per capita.
Appendix B | 171
Table B.9-3 Cash Flow Analysis
After cash flow consideration, the residential calculated charge is $204 per
capita. This increase reflects the front-ended nature of the timing of
anticipated capital projects.
The following table summarizes the calculation of the Long Term Care &
Senior Services development charge:
10-year Hist.
Service Level
per capita
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$851.95
$104,443,604
$1,267,823
$202
$0.00
$204
$0.00
LONG TERM CARE SUMMARY
2022 - 2031
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Development Charge
Appendix B | 172
This table show
s the 15-year historical ser
vice level and
funding envelope c
alculatio
ns for Long T
erm
Care
.
Appendix B | 173
Conclusion of t
he table showing the 15-year h
istorical servi
ce l
evel
and
fun
ding
env
elop
e ca
lcul
atio
ns f
or L
ong
Term
Car
e.
Appendix B | 174
This
table s
how
s the developmen
t-rel
ated capital progra
m for
Long Te
rm Care.
Appendix B | 175
This table d
isplays the
results of th
e ca
sh f
low
anal
ysis
for
Lon
g Te
rm C
are
- Res
idential.
Appendix B | 176
Appendix C
Engineering Infrastructure
Technical Appendix
Appendix C | 177
Engineered Services Technical Appendix
The Environmental Services & Operations and the Development Services
and Engineering Departments ensure that the City's municipal services such
as Services Related to a Highway: Roads, Wastewater, Water, and
Stormwater drainage/management facilities are designed for the
appropriate protection, health and quality of life of the public, and follow
standard engineering practices. These departments also provide review and
inspection services to facilitate new development and to maintain service
standards to sustain the existing infrastructure.
This appendix provides a brief outline of the municipal engineered
infrastructure namely; Services Related to a Highway: Roads, Wastewater,
Water and Stormwater management services. The roads infrastructure
includes the roads themselves as well as streetlights, traffic signalization,
sidewalks, structures, and related studies. The Wastewater service provides
for sewage tertiary treatment and the sanitary sewers and the Water
services include Water supply and distribution system. Stormwater services
includes stormwater pipes and ponds.
A ten-year development forecast, from 2022 to 2031, has been used to
calculate the development charges for the Services Related to a Highway:
Roads. A twenty-year development forecast, from 2022 to 2041, has been
used to calculate the development charges for Water, Wastewater, and
Stormwater services. This forecast is discussed in more detail in Appendix A.
The capital forecast for these services, were informed by the Municipality's
2019 Multi-Modal Transportation Master Plan, 2022 Wastewater System
Master Plan, and 2022 Water System Master Plan. The capital forecasts
were adjusted by Municipal staff and the consulting team based on the 2022
and draft 2023 capital budgets.
Appendix C | 178
Appendix C.1
Services Related to a Highway: Roads and
Related
Appendix C | 179
Services Related to a Highway: Roads and
Related
Tables 1 - 4 provide details of the projects included in the City-wide roads
and related engineered infrastructure development charges calculation. The
content of the tables is as follows:
Table C.1-1
Roads and Related Inventory of Capital Assets
Table C.1-2
Roads and Related Capital Program
Table C.1-3
Roads and Related Residential Cash Flow Analysis
Table C.1-4
Roads and Related Non-Residential Cash Flow Analysis
Table C.1-1 shows the historical roads and related inventory. The City
currently owns and maintains a total of 63.00 km of urban and rural roads
valued at $162.63 million. In addition, the inventory includes 39 signalized
intersections and 2 pedestrian crossing signals with a total value of $12.10
million. Finally, 124,600 meters of sidewalks are valued at $52.33. The total
value of the Services Related to a Highway: Roads is $227.06 million.
The 15-year average service level based on population and employment is
$4,397.58, which yields a maximum funding envelope of $33.64 million
(7,650 net population + employment growth X historic service level of $4,398
/capita + employment).
The total cost of the Services Related to a Highway: Roads capital program
is $38.90 million (Table C.1-2) and provides for the undertaking of various
roads and related projects throughout the City. Included in the $38.90 million
capital program is the recovery of the $2.22 million negative roads DC
reserve fund balance and various lane widenings (oversized shares included
Appendix C | 180
and noted). The related works include various growth-related intersection
signalizations and new sidewalks.
The entire $38.90 million growth-related roads capital program is not to be
fully recovered from future development charges; approximately $14.91
million of the program has been identified as a non-growth or benefit to
existing share and the City has $1.61 million in other recoveries.
The result is a growth-related and development charge recoverable 2022-
2031 share of the capital program of $21.91 million and approximately
$475,000 is recoverable post 2031. The growth-related cost has been
allocated 73 per cent ($16.00 million) to new residential development and 27
per cent ($5.90 million) to new non-residential development. The allocation
of costs is based on consideration of shares of population (in new
households) and employment growth over the planning period.
The residential share of the roads capital program is divided by the build-out
population growth to 2031 (6,266 persons). This results in an unadjusted
charge of $2,555 per capita. The non-residential portion of the capital
program is divided by the anticipated amount of non-residential gross floor
area to build-out to 2031 (144,650 square metres). The unadjusted non-
residential charge works out to $40.08 per square metre of gross floor area.
The long-term cash-flow analysis (Tables C.1-3 and C.1-4) takes into
consideration expenditure timing and revenue projections. The effect of the
analysis is an increase in the calculated development charges rates. The
main reason for this increase in the rates is the expectation that the
expenditures will occur in advance of the development. The resulting
adjusted residential and non-residential charges are $2,590 per capita and
$41.49 per square metre.
The following is a summary of the calculated Services Related to a Highway:
Roads development charges:
Appendix C | 181
This table sh
ows the charg
es after cash
flow
considerations fo
r Servic
es Rel
ated to
a High
way: Road
s.
Appendix C | 182
This table show
s the 15-year historical se
rvice level and funding envelope calculations fo
r Ser
vices Rel
ated to a Hi
ghwa
y: R
oads
.
Appendix C | 183
Continuation of
table showing the 15-year hi
storical service level and funding envelope calc
ulat
ions
for
Ser
vice
s Re
late
d to
a H
ighw
ay: Roads
.
Appendix C | 184
This
table s
how
s the
development-relate
d capi
tal pro
gram for Servic
es Relate
d to a High
way: Roads
over the 10
-year pla
nning
per
iod.
Appendix C | 185
This table d
isplays the
results of the
residential cash flow analysis for Services Rel
ated to a Highway
: Roads
Appendix C | 186
This table d
isplays the
results of the
non-residential cash flow analysis for to a Hig
hway: Roads.
Appendix C | 187
Appendix C.2
Wastewater
Appendix C | 188
Wastewater Services
Table C.2-1 provides details of the projects included in the Wastewater
infrastructure development charges calculation.
The City's Wastewater service growth-related capital program totals $134.85
million to service growth to build-out of the City. A sizeable project is the
Wastewater Treatment Centre Rehabilitation. This project was identified in
previous DC Studies, however through further examination, City staff have
recognized that there is sufficient capacity to service future population and
employment growth in the City to build-out. $10.40 million will be is
considered a benefit to existing shares, while the remaining $1.16 million
will be recovered by 2041.
The remainder of the Wastewater capital program is comprised of trunk
sewer upgrades and expansions, pumping station upgrades, Wastewater
Master Plan updates, and the recovery of a negative reserve fund deficit of
$4.24 million.
The total project costs for the WWTC Sludge Stabilization capacity: New
Primary Digester and Control Building is valued at $16.04 million. $11.04
million or 69 per cent has been identified as benefit to existing. The
remaining cost of the project, $5.00 million, is eligible for recovery.
In total, the growth-related capital program is approximately $134.79 million.
$5.60 million is to be funded from other sources. $31.33 million has been
identified as benefit to existing shares. $75.53 million is allocated to post-
2041 and will be included in a future DC by-law. The remaining $22.39
million is eligible for development charges in the planning period.
The growth-related cost has been allocated 72 per cent ($16.01 million) to
new residential development and 28 per cent ($6.38 million) to new
Appendix C | 189
non-residential development. These allocations are based on development
forecasts to 2041.
The residential share of the Wastewater capital program is divided by the
build-out population growth to 2041 (11,650 persons). This results in an
unadjusted charge of $1,375 per capita. The non-residential portion of the
capital program is divided by the anticipated amount of non-residential
gross floor area to build-out to 2041 (287,800 square metres). The
unadjusted non-residential charge works out to $22.17 per square metre of
gross floor area.
The long-term cash-flow analysis (Tables C.2-2 and C.2-3) takes into
consideration expenditure timing and revenue projections. The effect of the
analysis is an increase in the calculated development charges rates. The
main reason for this increase in the rates is the expectation that the
expenditures will occur in advance of the development. The resulting
adjusted residential and non-residential charges are $1,673 per capita and
$27.36 per square metre.
The following is a summary of the calculated Wastewater development
charges:
This
table shows the ch
arges af
ter ca
sh flow
consid
erations for
Wastewater
.
Appendix C | 190
This
table s
ets
out the p
rojects re
quired to
service an
ticipated
devel
opm
ent for
the twenty-yea
r period
from 202
2 to 204
1
for W
aste
wate
r
Appendix C 191
This table
dis
play
s th
e re
sult
s of
the
res
iden
tial
cash flow analysis
for Wastew
ater.
Appendix C | 192
Cont
inua
tion
of
tabl
e di
spla
ying
the
res
ults
of the res
idential ca
sh flow ana
lysis for W
astewater.
Appendix C | 193
This table
dis
play
s th
e re
sult
s of
the
non
-res
iden
tial cash flow analy
sis for Wa
stewater.
Appendix C | 194
Cont
inua
tion
of
tabl
e di
spla
ying
the
res
ults
of the non
-residentia
l cash flow
analysis f
or Wastewat
er.
Appendix C | 195
Appendix C.3
Water
Appendix C | 196
Water Services
Table C.3-1 provides details of the projects included in the Water Service
infrastructure development charges calculation.
The City's Water service growth-related capital program totals $38.88 million
to service growth to build-out of the City. The program provides for Water
mains, pumping stations, Water storage and expansions.
A component of the capital program has been identified as a non-growth or
benefit to existing share, which amounts to $5.58 million, and is netted off
the recoverable portion. These projects include the Harvie Hill Standpipe
with a total project cost valued at $4.70 million, Watermain connection on
Commerce Rd. with a benefit to existing share of $1.71 million.
It has been concluded by City staff that several projects will provide Water
capacity and benefit beyond build-out, as such several projects have been
allocated to post 2041. These projects include, $4.70 million for an
additional GFS standpipe at Harvie Hill, $110,000 for a Twin Watermain on
Laclie St., and Water Filtration Plan Upgrade for a post-period share of
$9.00 million. The portions of these projects allocated to post-2041 amounts
to $13.81 million. This amount is deemed to benefit development beyond
2041 and has been removed from the DC calculation. The balance, $11.93
million is growth-related and development charge recoverable in the 2022-
2041 planning period.
The growth-related cost has been allocated 72 per cent ($8.53 million) to
new residential development and 28 per cent ($3.40 million) to new
non-residential development.
The residential share of the Water capital program is divided by the build-
out population growth to 2041 (11,650 persons). This results in an
unadjusted charge of $733 per capita. The non-residential portion of the
Appendix C | 197
capital program is divided by the anticipated amount of non-residential
gross floor area to build-out to 2041 (287,800 square metres). The
unadjusted non-residential charge works out to $11.81 per square metre of
gross floor area.
The long-term cash-flow analysis (Tables C.3-2 and C.3-3) takes into
consideration expenditure timing and revenue projections. The effect of the
analysis is an increase in the calculated development charges rates. The
main reason for this increase in the rates is the expectation that the
expenditures will occur in advance of the development. The resulting
adjusted residential and non-residential charges are $779 per capita and
$12.68 per square metre.
The following is a summary of the calculated Water service development
charges:
This
table shows the ch
arges af
ter ca
sh flow
consid
erations fo
r Water.
Appendix C | 198
This
table s
ets
out the p
rojects re
quired to
service an
ticipated
develop
ment for the tw
enty-year
period
from 202
2
to 20
41 f
or Wat
er
.
Appendix C | 199
This
tabl
e di
spla
ys t
he r
esul
ts o
f th
e re
side
ntial cash flow anal
ysis for
Water.
Appendix C | 200
Cont
inua
tion
of
tabl
e di
spla
ying
the
res
ults
of the res
idential ca
sh flow ana
lysis for W
ater.
Appendix C | 201
This
tabl
e di
spla
ys t
he r
esul
ts o
f th
e no
n-re
sidential cash flow
analys
is for
Water.
Appendix C | 202
Cont
inua
tion
of
tabl
e di
spla
ying
the
res
ults
of the non
-residentia
l cash flow
analysis f
or Water.
Appendix C | 203
Appendix C.4
Stormwater
Appendix C | 204
Stormwater Management
Table C.4-1 provides details of the Stormwater Management development
charges calculation.
The gross sum of the growth related capital program totals $31.49 million, a
share of which, $805,062, is for recovery of past projects and is a recovery of
a negative reserve balance.
A component of the capital program has been identified as a non-growth or
benefit to existing share, which amounts to $20.79 million, and is netted off
the recoverable portion.
It has been concluded by City staff that several projects will provide capacity
and benefit beyond build-out, such as various studies including the addition
to James Street Works Garage ($5.00 million) and the Stormworks in West
Orillia ($700,000). As such, the total benefit to existing share for Stormwater
projects is $20.79 million and is not development charge recoverable. The
DC eligible costs for 2022-2041 total $5.13 million.
The growth-related cost has been allocated 72 per cent ($3.67 million) to
new residential development and 28 per cent ($1.46 million) to new
non-residential development. The allocation of costs is based on
consideration of shares of population in new households and employment
growth over the planning period.
The residential share of the Stormwater capital program is divided by the
build-out population growth to 2041 (11,650 persons). This results in an
unadjusted charge of $315 per capita. The non-residential portion of the
capital program is divided by the anticipated amount of non-residential
gross floor area to build-out to 2041 (287,800 square metres). The
unadjusted non-residential charge works out to $5.07 per square metre of
gross floor area.
Appendix C | 205
The long-term cash-flow analysis (Tables C.4-2 and C.4-3) takes into
consideration expenditure timing and revenue projections. The effect of the
analysis is an increase in the calculated development charges rates. The
main reason for this increase in the rates is the expectation that the
expenditures will occur in advance of the development. The resulting
adjusted residential and non-residential charges are $337 per capita and
$5.49 per square metre.
The following summarizes the calculated Stormwater management
development charges:
This
table shows the ch
arges af
ter ca
sh flow
consid
erations fo
r Stormwat
er.
Appendix C | 206
This table
sets out t
he projects req
uired to service anticipated develo
pment for
the twenty-
year
period
fro
m 2022 to
2041 for S
tormwater
.
Appendix C | 207
Continuati
on of table
seting out the
projects required to service antic
ipated dev
elopment fo
r the
twenty
-ye
ar period
from 2022
to 2041 f
or Stormwat
er.
Appendix C 208
This table
dis
play
s th
e re
sult
s of
the
res
iden
tial
cash flow analysis
for Stor
mwater.
Appendix C | 209
Cont
inua
tion
of
tabl
e di
spla
ying
the
res
ults
of the
reside
ntial cash
flow analys
is for Stor
mwater.
Appendix C 210
This table
dis
play
s th
e re
sult
s of
the
non
-res
iden
tial cash flow analy
sis for
Stormwate
r.
Appendix C | 211
Cont
inua
tion
of
tabl
e di
spla
ying
the
res
ults
of th
e non-
residenti
al cash f
low analy
sis for S
tormwater
.
Appendix C 212
Appendix D
Reserve Fund Balances
Appendix D | 213
Development Charges Reserve Fund
Unallocated Balances
The DCA requires that a reserve fund be established for each service for
which development charges are collected. Table D-1 presents the
uncommitted reserve fund balances that are available to help fund the
growth-related net capital costs identified in this study. The opening
balances of the development charges reserve funds are as of December 31,
2021 since the first capital year of the study is 2022.
As shown on Table D-1, the December 31, 2021 total reserve fund balance
was in a negative position of $10.27 million. The application of each of the
reserve funds is discussed in the appendix section related to each service. In
the services where the balance is negative, the deficit is recovered up to the
limitations allowable under the Development Charges Act.
Appendix D | 214
This table provid
es the DC re
serve f
und balances for each service as of
December 31, 2021
Appendix D | 215
Appendix E
Cost of Growth Analysis
Appendix E | 216
Appendix E - Cost of Growth Analysis
A.
Asset Management Plan
The Development Charges Act requires that municipalities complete an
Asset Management Plan before passing a development charges by-law. A
key function of the Asset Management Plan is to demonstrate that all assets
proposed to be funded under the development charges by-law are financially
sustainable over their full life-cycle.
i.
Asset Types
A summary of the future Municipality-owned assets and estimated useful
life assumptions for eligible DC services considered as part of the study are
outlined in Table E-1. Although all capital assets considered in the study
have been identified, not all assets necessitate future replacement or
ongoing maintenance activities. Some projects do not relate to the
emplacement of a tangible capital asset - some examples include the
acquisition of land, recovery of completed projects or the undertaking of
development-related studies. These projects/costs do not necessarily
require future replacement or ongoing maintenance. Such projects are
identified as "not infrastructure" in the table.
It should be noted that the capital cost estimates prepared for each of the
projects identified in this section include grouped costs of various individual
elements, which, as a stand-alone item, may have its own useful life (for
example, new buildings include HVAC, structural elements, roof, etc.).
Accordingly, the average useful life assumptions noted below are applicable
to all project components.
Appendix E | 217
Table E-1 - Summary of Municipal Assets' Useful Lives
Service
Estimated Useful Life
Library Services
Collection Materials
New Sorter
7 years
10 years
Fire Services
Materials and Equipment
Buildings
20 years
50 years
Indoor Recreation
Fitness Equipment
5 years
Parks Development, Facilities, and Fleet
Park Facilities
Trails
Vehicles
20 years
30 years
10 years
Services Related to a Highway: Public Works
Buildings
Vehicles and Equipment
50 years
10-15 years
Transit
Bus Stops
Vehicles and Equipment
Buildings
10 years
20 years
50 years
Waste Diversion Services
Facilities and Land
Vehicles and Equipment
40 years
20 years
Paramedic Services
Buildings
Vehicles
50 years
10 years
Long Term Care
Buildings
50 years
Appendix E | 218
Service
Estimated Useful Life
Services Related to a Highway: Roads
Roads
Intersection Improvement
Sidewalks
30 years
30 years
30 years
Wastewater
Wastewater Infrastructure
Buildings
50 years
50 years
Water
Standpipes
Watermains
Wells
Buildings
Pumps
50 years
50 years
50 years
50 years
20 years
Stormwater
Stormwater Pipes
Buildings
50 years
50 years
ii.
Annual Provision
When assets require rehabilitation or are due for replacement, the source of
funds is limited to reserves or contributions from operating. Capital
expenditures to carry out the rehabilitation and replacement of aging
infrastructure are not growth-related and are therefore not eligible for
funding through development charge revenues or other developer
contributions.
Based on the useful life assumptions and the capital cost of acquiring
and/or emplacing each asset, a provision for infrastructure replacement has
been calculated for both the general and engineered services. Provisions for
infrastructure replacement are initially calculated for each asset based on
their useful life and the anticipated cost of replacement. The aggregate of all
Appendix E | 219
individual provisions form the required annual capital provision. In
calculating the annual provisions, a number of assumptions are made to
account for inflation (2.0 per cent) and interest (3.5 per cent).
Consistent with the requirements of the DCA, assets that are proposed to be
funded under the development charges by-law have been included in the
analysis. As a result, the total calculated annual provision for development
charge related infrastructure has been netted down to consider the
replacement of existing infrastructure or benefit-to-existing development.
However, for reference, the annual replacement provisions associated with
the non-development charge funded costs, including costs related to the
benefit-to-existing and post-period benefit have also been calculated.
Tables 2 and 3 provide the calculated annual asset management
contribution for both the gross capital expenditures and the share related to
the 2022 to 2031 DC recoverable portion. As shown in Table E-2, by 2032,
the Municipality will need to fund an additional $8.46 million in order to
properly fund the full life cycle costs of the new assets related to all services
supported under the development charges by-law. This table highlights the DC-eligible and non-DC eligible capital program for each service over the planning period. This table also co
Appendix E | 220
iii.
Future Revenue Growth
The calculated annual funding provision should be considered within the
context of the Municipality's projected growth. Over the next ten years, the
Municipality's population is projected to increase by 5,340. In addition, the
Municipality will also add 2,310 employees that will result in approximately
144,650 square metres of additional non-residential building space.
This growth will have the effect of increasing the overall assessment base.
This leads to additional user fee and charge revenues to offset the capital
asset provisions required to replace the infrastructure proposed to be
funded under the development charges by-law. The collection of these
funds is intended to be allocated to the Municipality's reserves for future
replacement of these assets.
B.
Long-Term Capital and Operating Impacts
As shown in Table E-3, by 2031 the Municipality's net operating costs are
estimated to increase by $6.19 million for property tax supported services.
Increases in net operating costs will be experienced as there are operational
costs associated with additional capital.
Table E-4 summarizes the components of the development-related capital
forecast that will require funding from non-DC sources (e.g. property tax) for
the planning period 2022 to 2031. In total, $177.16 million will need to be
funded from non-DC sources over the planning period and is related to
facilities and infrastructure that will benefit the existing community.
Council is made aware of these factors so that they understand the
operating and capital costs that will not be covered by DCs as it adopts the
development-related capital forecast set out in the study.
Appendix E | 221
C.
The Program is Deemed Financially Sustainable
In summary, the Asset Management Plan and long-term capital and
operating analysis included in this appendix demonstrates that the
Municipality can afford to invest and operate the identified general and
engineered services infrastructure over the ten-year planning period.
Importantly, the Municipality's annual budget review allows staff to continue
to monitor and implement mitigating measures should the program become
less sustainable.
Appendix E | 222
This table
gives th
e estimated oper
a
ting impact
of addi
tional capital
for each servic
e area
exce pt paramedic, long term car
e, water,
wastew
ater, and sto
rmwater.
Appendix E | 223
This table
summariz
es the tax and
rate supported funding requirements for each
service area.
Appendix E | 224
Appendix F
DC By-Law
Available separately - Please see:
https://www.orillia.ca/en/city-hall/resources/Treasury/DC-By-law-2023-009.pdf
Appendix F | 225