Oro-Medonte 2024 Development Charges Final Report (background study)

Oro-Medonte, Ontario · summary & facts

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Watson & Associates Economists Ltd. 905-272-3600 August 23, 2024 [email protected] Development Charges Background Study Township of Oro-Medonte Watson & Associates Economists Ltd. H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table of Contents Page Executive Summary ....................................................................................................... i 1. Introduction ...................................................................................................... 1-1 1.1 Purpose of this Document ....................................................................... 1-1 1.2 Summary of the Process ......................................................................... 1-2 1.3 Changes to the D.C.A.: Bills 108, 138, 197, 213, and 109 ..................... 1-3 1.3.1 Bill 108: More Homes, More Choice Act - An Act to Amend Various Statutes with Respect to Housing, Other Development, and Various Matters ............................................ 1-3 1.3.2 Bill 138: Plan to Build Ontario Together Act, 2019 ..................... 1-5 1.3.3 Bill 197: COVID-19 Economic Recovery Act, 2020 .................... 1-5 1.3.4 Bill 213: Better for People, Smarter for Business Act, 2020 ....... 1-7 1.3.5 Bill 109: More Homes for Everyone Act, 2022 ........................... 1-7 1.4 Changes to the D.C.A. - Bill 23: More Homes Built Faster Act, 2022 ..... 1-8 1.4.1 Additional Residential Unit Exemption ....................................... 1-8 1.4.2 Removal of Housing as an Eligible D.C. Service ....................... 1-9 1.4.3 New Statutory Exemption for Non-Profit Housing ...................... 1-9 1.4.4 New Statutory Exemptions for Affordable Units, Attainable Units, and Affordable Inclusionary Zoning Units ........................ 1-9 1.4.5 Historical Level of Service Extended to Previous 15-Year Period ...................................................................................... 1-10 1.4.6 Revised Definition of Capital Costs .......................................... 1-10 1.4.7 Mandatory Phase-in of a D.C. .................................................. 1-10 1.4.8 D.C. By-law Expiry ................................................................... 1-10 1.4.9 Installment Payments ............................................................... 1-11 1.4.10 Rental Housing Discount.......................................................... 1-11 1.4.11 Maximum Interest Rate for Instalments and Determination of Charge for Eligible Site Plan and Zoning By-law Amendment Applications ......................................................... 1-11 1.4.12 Requirement to Allocate Funds Received ................................ 1-11 Table of Contents (Cont'd) Page Watson & Associates Economists Ltd. H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 1.4.13 Bill 134: Affordable Homes and Good Jobs Act, 2023 ............. 1-11 1.5 Bill 185: Cutting Red Tape to Build More Homes Act, 2024.................. 1-13 1.5.1 Revised Definition of Capital Costs .......................................... 1-13 1.5.2 Removal of the Mandatory Phase-in ........................................ 1-14 1.5.3 Process for Minor Amendments to D.C. By-laws ..................... 1-14 1.5.4 Reduction of D.C. Rate Freeze Timeframe .............................. 1-15 1.5.5 Modernizing Public Notice Requirements ................................ 1-15 2. Current Township of Oro-Medonte Policy ..................................................... 2-1 2.1 Schedule of Charges .............................................................................. 2-1 2.2 Services Covered ................................................................................... 2-1 2.3 Timing of D.C. Calculation and Payment ................................................ 2-2 2.4 Indexing .................................................................................................. 2-2 2.5 Redevelopment Allowance ..................................................................... 2-2 2.6 Exemptions ............................................................................................. 2-3 3. Anticipated Development in the Township of Oro-Medonte ........................ 3-1 3.1 Requirement of the Act ........................................................................... 3-1 3.2 Basis of Population, Household and Non-Residential Gross Floor Area Forecast ......................................................................................... 3-1 3.3 Summary of Growth Forecast ................................................................. 3-2 4. The Approach to the Calculation of the Charge ........................................... 4-1 4.1 Introduction ............................................................................................. 4-1 4.2 Services Potentially Involved .................................................................. 4-1 4.3 Increase in the Need for Service ............................................................. 4-1 4.4 Local Service Policy ................................................................................ 4-6 4.5 Capital Forecast ...................................................................................... 4-6 4.6 Treatment of Credits ............................................................................... 4-7 4.7 Classes of Services ................................................................................ 4-8 4.8 Existing Reserve Funds .......................................................................... 4-8 4.9 Deductions .............................................................................................. 4-9 4.9.1 Reduction Required by Level of Service Ceiling ...................... 4-10 4.9.2 Reduction for Uncommitted Excess Capacity .......................... 4-10 4.9.3 Reduction for Benefit to Existing Development ........................ 4-11 4.9.4 Reduction for Anticipated Grants, Subsidies and Other Contributions ............................................................................ 4-12 4.10 Municipal-wide vs. Area Rating ............................................................. 4-12 4.11 Allocation of Development .................................................................... 4-12 4.12 Asset Management ............................................................................... 4-13 4.13 Transit ................................................................................................... 4-13 5. D.C.-Eligible Cost Analysis by Service .......................................................... 5-1 Table of Contents (Cont'd) Page Watson & Associates Economists Ltd. H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 5.1 Introduction ............................................................................................. 5-1 5.2 Service Levels and 10-Year Capital Costs for Township of Oro- Medonte D.C. Calculations ..................................................................... 5-1 5.2.1 Services Related to a Highway .................................................. 5-1 5.2.2 Fire Protection Services ............................................................. 5-6 5.2.3 Parks and Recreation Services .................................................. 5-8 5.2.4 Provincial Offences Act (By-law Enforcement) ......................... 5-10 5.2.5 Growth Studies ........................................................................ 5-12 5.3 Urban Area 10-Year D.C. Calculations ................................................. 5-14 5.3.1 Water Services ......................................................................... 5-14 6. D.C. Calculation ............................................................................................... 6-1 7. D.C. Policy Recommendations and D.C. By-law Rules ................................ 7-1 7.1 Introduction ............................................................................................. 7-1 7.2 D.C. By-law Structure ............................................................................. 7-2 7.3 D.C. By-law Rules ................................................................................... 7-2 7.3.1 Payment in any Particular Case ................................................. 7-2 7.3.2 Determination of the Amount of the Charge ............................... 7-3 7.3.3 Application to Redevelopment of Land (Demolition and Conversion) ................................................................................ 7-3 7.3.4 Exemptions (full or partial) ......................................................... 7-4 7.3.5 Timing of Collection ................................................................... 7-5 7.3.6 The Applicable Areas ................................................................. 7-5 7.3.7 Indexing ..................................................................................... 7-5 7.4 Other D.C. By-law Provisions ................................................................. 7-6 7.4.1 Categories of Services for Reserve Fund and Credit Purposes .................................................................................... 7-6 7.4.2 By-law In-force Date .................................................................. 7-6 7.4.3 Minimum Interest Rate Paid on Refunds and Charged for Inter-Reserve Fund Borrowing ................................................... 7-6 7.4.4 Area Rating ................................................................................ 7-7 7.5 Other Recommendations ........................................................................ 7-8 8. By-law Implementation ................................................................................... 8-1 8.1 Public Consultation Process ................................................................... 8-1 8.1.1 Introduction ................................................................................ 8-1 8.1.2 Public Meeting of Council........................................................... 8-1 8.1.3 Other Consultation Activity ......................................................... 8-1 8.2 Anticipated Impact of the Charge on Development ................................. 8-2 8.3 Implementation Requirements ................................................................ 8-3 8.3.1 Introduction ................................................................................ 8-3 Table of Contents (Cont'd) Page Watson & Associates Economists Ltd. H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 8.3.2 Notice of Passage ...................................................................... 8-3 8.3.3 By-law Pamphlet ........................................................................ 8-3 8.3.4 Appeals ...................................................................................... 8-4 8.3.5 Complaints ................................................................................. 8-4 8.3.6 Credits ....................................................................................... 8-5 8.3.7 Front-Ending Agreements .......................................................... 8-5 8.3.8 Severance and Subdivision Agreement Conditions ................... 8-5 Appendix A Background Information on Residential and Non- Residential Growth Forecast ................................................ A-1 Appendix B Level of Service ...................................................................... B-1 Appendix C Long-Term Capital and Operating Cost Examination ......... C-1 Appendix D D.C. Reserve Fund Policy ...................................................... D-1 Appendix E Local Service Policy ...............................................................E-1 Appendix F Asset Management Plan ......................................................... F-1 Appendix G Proposed D.C. By-law ............................................................ G-1 Watson & Associates Economists Ltd. H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx List of Acronyms and Abbreviations Acronym Full Description of Acronym A.M.P. Asset management plan C.B.C. Community benefits charge D.C. Development charge D.C.A. Development Charges Act, 1997, as amended F.I.R. Financial Information Return G.F.A. Gross floor area N.F.P.O.W. No fixed place of work OLT Ontario Land Tribunal O.M.B. Ontario Municipal Board O.P.A. Official Plan Amendment O. Reg. Ontario Regulation P.P.U. Persons per unit S.D.E. Single detached equivalent S.D.U. Single detached unit sq.ft. square foot/feet sq.m square metre(s) Executive Summary Watson & Associates Economists Ltd. PAGE i H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Executive Summary 1. The report provided herein represents the Development Charges (D.C.) Background Study for the Township of Oro-Medonte required by the Development Charges Act, 1997, as amended (D.C.A.). This report has been prepared in accordance with the methodology required under the D.C.A. The contents include the following: - Chapter 1 - Overview of the legislative requirements of the Act; - Chapter 2 - Review of present D.C. policies of the Township; - Chapter 3 - Summary of the residential and non-residential growth forecasts for the Township; - Chapter 4 - Approach to calculating the D.C.; - Chapter 5 - Review of historical service standards and identification of future capital requirements to service growth and related deductions and allocations; - Chapter 6 - Calculation of the D.C.s; - Chapter 7 - D.C. policy recommendations and rules; and - Chapter 8 - By-law implementation. 2. D.C.s provide for the recovery of growth-related capital expenditures from new development. The D.C.A. is the statutory basis to recover these charges. The methodology is detailed in Chapter 4; a simplified summary is provided below. 1) Identify amount, type and location of growth. 2) Identify servicing needs to accommodate growth. 3) Identify capital costs to provide services to meet the needs. 4) Deduct: - Grants, subsidies and other contributions; - Benefit to existing development; - Amounts in excess of 15-year historical service calculation; and - D.C. reserve funds (where applicable); 5) Net costs are then allocated between residential and non-residential benefit; and 6) Net costs divided by growth to provide the D.C. Watson & Associates Economists Ltd. PAGE ii H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 3. A number of changes to the D.C.A. have occurred since the passage of the Township's 2019 D.C. By-law. Some of the changes were introduced through four bills passed in the Ontario legislature: Bill 108, Bill 138, Bill 197, and Bill 213. The changes included the following: - Instalment payments for rental housing, institutional developments, and non-profit housing; - Rate freeze on D.C.s for applications proceeding through Site Plan or Zoning By-law Amendment applications; - Removal of the 10% mandatory deduction on all D.C. eligible services; - Introduction of a new authority under the Planning Act to implement Community Benefit Charges (C.B.C.); - Eligible Services: The list of eligible services for the D.C. was expanded to include most services eligible under the D.C.A. prior to Bill 108; and - New exemption for universities that receive operating funds from the Government. 4. The Province has since introduced another set of revisions to the D.C.A. through Bill 23: More Homes Built Faster Act, 2022. Bill 23 was first introduced on October 25, 2022, and received Royal Assent on November 28, 2022. A summary of the changes provided from Bill 23 are outlined below (further details are provided in Chapter 1 of this report): - Additional residential unit exemption: allowance of a third unit as-of-right; - Removal of Housing as an eligible D.C. service; - New statutory exemption for Affordable Units; - New statutory exemption for Attainable Units; - New statutory exemption for Affordable Inclusionary Zoning Units; - New statutory exemption for Non-Profit Housing; - Historical level of service extended to previous 15-year period instead of the previous 10-year period; - Capital Cost definition revised to remove studies and prescribe services for which land or an interest in land will be restricted (nothing prescribed to date); - Mandatory phase-in of a D.C. for by-laws passed after January 1, 2022, as follows: Watson & Associates Economists Ltd. PAGE iii H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx o Year 1 - 80% of the maximum charge; o Year 2 - 85% of the maximum charge; o Year 3 - 90% of the maximum charge; o Year 4 - 95% of the maximum charge; and o Year 5 to expiry - 100% of the maximum charge. - D.C. By-law expiry will be a maximum of 10 years after the date the by-law comes into force; - D.C. for Rental Housing developments to receive a discount as follows: o Three or more bedrooms - 25% reduction; o Two bedrooms - 20% reduction; and o All other bedroom quantities - 15% reduction. - Maximum interest rate for instalments and determination of charge for eligible Site Plan and Zoning By-law Amendment applications to be set at the average prime rate plus 1%; and - Requirement to allocate funds received - municipalities are required to spend or allocate at least 60% of their reserve fund at the beginning of the year for water, wastewater, and services related to a highway. 5. On April 10, 2024, the Province released Bill 185: Cutting Red Tape to Build More Homes Act. The Bill received Royal Assent on June 6, 2024. A summary of the changes provided from Bill 185 are outlined below (further details are provided in Chapter 1 of this report): - The definition of eligible capital costs (to include certain studies); - The removal of the mandatory phase-in of charges; - The process for minor amendments to D.C. by-laws; - A reduction of time for the D.C. rate freeze related to site plan and zoning by-law amendment planning applications; - Modernizing public notice requirements; and - Implementation of the affordable residential unit exemptions 6. The growth forecast (Chapter 3) on which the Township-wide D.C. is based, projects the following population, housing, and non-residential floor area for the 10-year and urban 10-year periods. Watson & Associates Economists Ltd. PAGE iv H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table ES-1 Summary of Growth Forecast by Planning Period Township of Oro-Medonte Measure 10-Year Urban 10-Year (Net) Population Increase 4,370 3,373 Residential Unit Increase 1,717 1,242 Non-Residential Gross Floor Area Increase (sq.ft.) 752,300 252,000 Source Watson & Associates Economists Ltd. Forecast 2024 7. On October 23, 2019, the Township of Oro-Medonte passed By-law 2019-100 under the D.C.A. The by-law imposes D.C.s on residential and non-residential uses. The Township is undertaking a D.C. public process and anticipates passing a new by-law. The mandatory public meeting has been set for September 11, 2024 with adoption of the by-law on October 23, 2024. 8. The Township-wide D.C. currently in effect is $16,627 for single detached dwelling units. The current Township-wide non-residential charge is $5.91 per sq.ft. In addition to these charges, the Township imposes area-specific water and wastewter D.C.s for Horseshoe Valley and Warminster. For Horseshoe Valley, the water and wastewater D.C.s are an additional $25,487 for single detached dwellings and $3.59 per sq.ft. for non-residenital developments. For Warminster, the water D.C.s are an additional $12,250 for single detached dwellings. 9. This report has undertaken a recalculation of the charges based on future identified needs (presented in Schedule ES-1 for residential and non-residential). Charges have been provided on a Township-wide basis for all services, excluding water services, which have been provided on an urban-area basis (note that wastewater is not being included as part of this D.C. study). The corresponding Township-wide single detached unit charge is $18,759, while developments in the urban area that will be serviced with municipal water will have a total D.C. of $29,255. The corresponding Township-wide non-residential charge is $4.82 per sq.ft. of building area, while developments in the urban area that will be serviced with municipal water will have a total D.C. of $10.66 per sq.ft. of building area. These rates are submitted to Council for its consideration. Watson & Associates Economists Ltd. PAGE v H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 10. The D.C.A. requires a summary be provided of the gross capital costs and the net costs to be recovered over the life of the by-law. This calculation is provided by service and is presented in Table 6-4. A summary of these costs is provided below: Table ES-2 Summary of Expenditures Anticipated Over the Life of the By-law Summary of Expenditures Anticipated Over the Life of the By-law Expenditure Amount Total gross expenditures planned over the next ten years $84,985,231 Less: Benefit to existing development $19,433,729 Less: Post planning period benefit $17,856,100 Less: Other Deductions $59,000 Less: Grants, subsidies and other contributions $0 Net costs to be recovered from development charges $47,636,403 This suggests that for the non-D.C. cost over the 10-year D.C. by-law (benefit to existing development, and grants, subsidies and other contributions), $19.49 million (or an annual amount of $1.95 million) will need to be contributed from taxes and rates, or other sources. With respect to the post period benefit amount of $17.86 million, it will be included in subsequent D.C. study updates to reflect the portion of capital that benefits growth in the post period D.C. forecasts. Based on the above table, the Township plans to spend $84.99 million over the life of the by-law, of which $47.64 million (56%) is recoverable from D.C.s. Of this net amount, $42.44 million is recoverable from residential development and $5.19 million from non-residential development. It is noted also that any exemptions or reductions in the charges would reduce this recovery further. 11. Considerations by Council - The background study represents the service needs arising from residential and non-residential growth over the forecast periods. The following services are calculated based on a 10-year urban area-specific forecast: - Water Services. Watson & Associates Economists Ltd. PAGE vi H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx The following services are calculated based on a 10-year forecast: - Services Related to a Highway (including Public Works) - Fire Protection Services; - Park and Recreation Services; - Provincial Offences Act (By-law Enforcement); and - Growth Studies Council will consider the findings and recommendations provided in the report and, in conjunction with public input, approve such policies and rates it deems appropriate. These directions will refine the draft D.C. by-law which is appended in Appendix G. These decisions may include: - adopting the charges and policies recommended herein; - considering additional exemptions to the by-law; and - considering reductions in the charge by class of development (obtained by removing certain services on which the charge is based and/or by a general reduction in the charge). Watson & Associates Economists Ltd. PAGE vii H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table ES-3 Schedule of Development Charges NON-RESIDENTIAL Single and Semi- Detached Dwelling Multiples Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom Special Care/Special Dwelling Units (per sq.ft. of Gross Floor Area) Township Wide Services/Class of Service: Services Related to a Highway 8,323 6,668 5,071 3,305 3,055 2.90 Fire Protection Services 2,656 2,128 1,618 1,055 975 0.93 Parks and Recreation Services 7,030 5,632 4,283 2,791 2,580 0.73 Provincial Offences Act (By-Law Enforcement) 42 34 26 17 15 0.01 Growth Studies 708 567 431 281 260 0.25 Total Township-Wide Services/Class of Services 18,759 15,029 11,429 7,449 6,885 4.82 Urban Area Charges Water Services 10,496 8,409 6,395 4,168 3,852 5.84 Total Urban Area 10,496 8,409 6,395 4,168 3,852 5.84 GRAND TOTAL TOWNSHIP WIDE 18,759 15,029 11,429 7,449 6,885 4.82 GRAND TOTAL TOWNSHIP WIDE + URBAN AREA 29,255 23,438 17,824 11,617 10,737 10.66 Service/Class of Service RESIDENTIAL Report Watson & Associates Economists Ltd. H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Chapter 1 Introduction Watson & Associates Economists Ltd. PAGE 1-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 1. Introduction 1.1 Purpose of this Document This background study has been prepared pursuant to the requirements of the D.C.A. as amended, (section 10) and, accordingly, recommends new development charges (D.C.s) and policies for the Township of Oro-Medonte. The Township retained Watson & Associates Economists Ltd. (Watson), to undertake the D.C. study process throughout 2023 and 2024. Watson worked with Township staff in preparing the D.C. analysis and policy recommendations. This D.C. background study, containing the proposed D.C. by-law, will be distributed to members of the public in order to provide interested parties with sufficient background information on the legislation, the study's recommendations, and an outline of the basis for these recommendations. This report has been prepared, in the first instance, to meet the statutory requirements applicable to the Township's D.C. background study, as summarized in Chapter 4. It also addresses the requirement for "rules" (contained in Chapter 7) and the proposed by-law to be made available as part of the approval process (included as Appendix G). In addition, the report is designed to set out sufficient background on the legislation (Chapter 4), Oro-Medonte's current D.C. policies (Chapter 2) and the policies underlying the proposed by-law, to make the exercise understandable to those who are involved. Finally, it addresses post-adoption implementation requirements (Chapter 8) which are critical to the successful application of the new policy. The chapters in the report are supported by Appendices containing the data required to explain and substantiate the calculation of the charge. A full discussion of the statutory requirements for the preparation of a background study and calculation of a D.C. is provided herein. Watson & Associates Economists Ltd. PAGE 1-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 1.2 Summary of the Process The public meeting required under section 12 of the D.C.A. has been scheduled for September 11, 2024. Its purpose is to present the study to the public and to solicit public input. The meeting is also being held to answer any questions regarding the study's purpose, methodology, and the proposed modifications to the Township's D.C.s. In accordance with the legislation, the background study and proposed D.C. by-law will be available for public review on August 23, 2024. The process to be followed in finalizing the report and recommendations includes: - Consideration of responses received prior to, at, or immediately following the public meeting; and - Finalization of the report and Council consideration of the by-law subsequent to the public meeting. Figure 1-1 outlines the proposed schedule to be followed with respect to the D.C. by-law adoption process. Watson & Associates Economists Ltd. PAGE 1-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Figure 1-1 Schedule of Key D.C. Process Dates for the Township of Oro-Medonte Schedule of Study Milestone Dates 1. Data collection, staff review, D.C. calculations and policy work July 2023 to July 2024 2. Council Meeting # 1 January 10, 2024 3. Council Meeting # 2 August 14, 2024 4. Public meeting advertisement placed on Township's website and media platforms No later than August 21, 2024 5. Public release of final D.C. Background study and proposed by-law August 23, 2024 6. Development Services Committee receives the Background Study and Draft By-law September 4, 2024 7. Public meeting of Council September 11, 2024 8. Council considers adoption of background study and passage of by-law October 23, 2024 9. Township website and media platform publication of by-law passage By 20 days after passage 10. Last day for by-law appeal 40 days after passage 11. Township makes pamphlet available (where by- law not appealed) By 60 days after in force date 1.3 Changes to the D.C.A.: Bills 108, 138, 197, 213, and 109 1.3.1 Bill 108: More Homes, More Choice Act - An Act to Amend Various Statutes with Respect to Housing, Other Development, and Various Matters On May 2, 2019, the Province introduced Bill 108, which proposed changes to the D.C.A. The Bill was introduced as part of the Province's "More Homes, More Choice: Ontario's Housing Supply Action Plan." The Bill received Royal Assent on June 6, 2019. While having received Royal Assent, many of the amendments to the D.C.A. would not come into effect until they are proclaimed by the Lieutenant Governor (many of these changes were revised through Bill 197). At the time of writing, the following provisions have been proclaimed: Watson & Associates Economists Ltd. PAGE 1-4 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx - Effective January 1, 2020, rental housing and institutional developments will pay D.C.s in six equal annual payments commencing at occupancy. Interest may be charged on the instalments, and any unpaid amounts may be added to the property and collected as taxes. As per Bill 23, non-profit housing developments are now exempt from paying D.C.s; however, prior to Bill 23, and as a result of Bill 108, non-profit housing developments paid D.C.s in 21 equal annual payments. Effective January 1, 2020, the D.C. amount for all developments occurring within 2 years of a Site Plan or Zoning By-law Amendment planning approval (for application submitted after this section is proclaimed), shall be determined based on the D.C. in effect on the day of Site Plan or Zoning By-law Amendment application. If the development is not proceeding via these planning approvals, then the amount is determined as of the date of issuance of a building permit. On February 28, 2020, the Province released updated draft regulations related to the D.C.A. and the Planning Act. A summary of the changes that were to take effect upon proclamation by the Lieutenant Governor is provided below. Changes to Eligible Services - Prior to Bill 108, the D.C.A. provided a list of ineligible services whereby municipalities could include growth related costs for any service that was not listed. With Bill 108, the changes to the D.C.A. would now specifically list the services that are eligible for inclusion in the by-law. Furthermore, the initial list of eligible services under Bill 108 was limited to "hard services", with the "soft services" being removed from the D.C.A. These services would be considered as part of a new community benefits charge (discussed below) imposed under the Planning Act. As noted in the next section this list of services has been amended through Bill 197. Mandatory 10% deduction - The amending legislation would have removed the mandatory 10% deduction for all services that remain eligible under the D.C.A. Remaining Services to be Included in a New Community Benefits Charge (C.B.C.) Under the Planning Act - It was proposed that a municipality may, by by-law, impose a C.B.C. against land to pay for the capital costs of facilities, services and matters required because of development or redevelopment in the area to which the by-law applies. The C.B.C. was proposed to include formerly eligible D.C. services that are not included in the above listing, in addition to parkland dedication and bonus zoning contributions. Watson & Associates Economists Ltd. PAGE 1-5 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 1.3.2 Bill 138: Plan to Build Ontario Together Act, 2019 On November 6, 2019, the Province released Bill 138 which provided further amendments to the D.C.A. and Planning Act. This Bill received Royal Assent on December 10, 2019, and was proclaimed which resulted in sections related to the D.C.A. (schedule 10) becoming effective on January 1, 2020. The amendments to the D.C.A. included removal of instalment payments for commercial and industrial developments that were originally included in Bill 108. 1.3.3 Bill 197: COVID-19 Economic Recovery Act, 2020 In response to the global pandemic that began affecting Ontario in early 2020, the Province released Bill 197 which provided amendments to a number of Acts, including the D.C.A. and Planning Act. This Bill also revised some of the proposed changes identified in Bill 108. Bill 197 was tabled on July 8, 2020, received Royal Assent on July 21, 2020, and was proclaimed on September 18, 2020. The following provides a summary of the changes. 1.3.3.1 D.C.-Related Changes List of D.C.-Eligible Services - As noted above, under Bill 108 some services were to be included under the D.C.A. and some would be included under the C.B.C. authority. Bill 197, however, revised this proposed change and has included all services (with some exceptions) under the D.C.A. These services are as follows: o Water supply services, including distribution and treatment services. o Wastewater services, including sewers and treatment services. o Storm water drainage and control services. o Services related to a highway. o Electrical power services. o Toronto-York subway extension. o Transit services. o Waste diversion services. o Policing services. o Fire protection services. o Ambulance services. o Library services. Watson & Associates Economists Ltd. PAGE 1-6 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx o Long-term care services. o Parks and recreation services, but not the acquisition of land for parks. o Public health services. o Childcare and early years services. o Housing services (no longer eligible as per Bill 23). o Provincial Offences Act services. o Services related to emergency preparedness. o Services related to airports, but only in the Regional Municipality of Waterloo. o Additional services as prescribed. Classes of Services - D.C. Pre-Bill 108/197 legislation (i.e., D.C.A., 1997) allowed for categories of services to be grouped together into a minimum of two categories (90% and 100% services). The Act (as amended) repeals and replaces the above with the four following subsections: - A D.C. by-law may provide for any eligible service or capital cost related to any eligible service to be included in a class, set out in the by-law. - A class may be composed of any number or combination of services and may include parts or portions of the eligible services or parts or portions of the capital costs in respect of those services. - A D.C. by-law may provide for a class consisting of studies in respect of any eligible service whose capital costs are described in paragraphs 5 and 6 of section 5 of the D.C.A. - A class of service set out in the D.C. by-law is deemed to be a single service with respect to reserve funds, use of monies, and credits. Note: An initial consideration of "class" appears to mean any group of services. Mandatory 10% Deduction In addition, the removal of the 10% deduction for soft services under Bill 108 has been maintained. Watson & Associates Economists Ltd. PAGE 1-7 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx As a result of the passage of Bill 197, and subsequent proclamation on September 18, 2020, this report has provided the D.C. calculations without the 10% mandatory deduction. 1.3.3.2 C.B.C.-Related Changes C.B.C. Eligibility The C.B.C. is limited to lower-tier and single-tier municipalities; upper-tier municipalities will not be allowed to impose this charge. 1.3.3.3 Combined D.C. and C.B.C. Impacts D.C. vs. C.B.C. Capital Cost A C.B.C. may be imposed with respect to the services listed in subsection 2 (4) of the D.C.A. (eligible services), "provided that the capital costs that are intended to be funded by the community benefits charge are not capital costs that are intended to be funded under a development charge by-law." 1.3.4 Bill 213: Better for People, Smarter for Business Act, 2020 On December 8, 2020, Bill 213 received Royal Assent. One of the changes of the Bill that took effect upon Royal Assent included amending the Ministry of Training, Colleges and Universities Act by introducing a new section that would exempt the payment of D.C.s for developments of land intended for use by a university that receives operating funds from the Government. As a result, this mandatory exemption will be included in the D.C. by-law. 1.3.5 Bill 109: More Homes for Everyone Act, 2022 On April 14, 2022, Bill 109 received Royal Assent. One of the changes of the Bill and Ontario Regulation (O. Reg.) 438/22 that took effect upon Royal Assent included amending the D.C.A. and O. Reg. 82/98 related to the requirements for the information which is to be included in the annual Treasurer's statement on D.C. reserve funds and the requirement for publication of the statement. The following additional information must be provided for each D.C. service being collected for during the year: Watson & Associates Economists Ltd. PAGE 1-8 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx a) whether, as of the end of the year, the municipality expects to incur the amount of capital costs that were estimated, in the relevant development charge background study, to be incurred during the term of the applicable development charge by-law; b) if the answer to a) is no, the amount the municipality now expects to incur and a statement as to why this amount is expected; and c) if no money was spent from the reserve fund during the year, a statement as to why there was no spending during the year. The changes to the D.C.A. has also been amended to now require that the annual Treasurer's statement be made available to the public on the website of the municipality or, if there is no such website, in the municipal office. 1.4 Changes to the D.C.A. - Bill 23: More Homes Built Faster Act, 2022 On November 28, 2022, Bill 23 received Royal Assent. This Bill amends a number of pieces of legislation including the Planning Act and the D.C.A. It is noted that, the Province removed the phase-in requirements and reinstated studies as an eligible capital costs through Bill 185 (discussed in section 1.5). The following provides a summary of the changes to the D.C.A. 1.4.1 Additional Residential Unit Exemption The rules for these exemptions are now provided in the D.C.A., rather than the regulations and are summarized as follows: - Exemption for residential units in existing rental residential buildings - For rental residential buildings with four or more residential units, the creation of the greater of one unit or 1% of the existing residential units will be exempt from a D.C. - Exemption for additional residential units in existing and new residential buildings - The following developments will be exempt from a D.C.: o A second unit in a detached, semi-detached, or rowhouse if all buildings and ancillary structures cumulatively contain no more than one residential unit; Watson & Associates Economists Ltd. PAGE 1-9 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx o A third unit in a detached, semi-detached, or rowhouse if no buildings or ancillary structures contain any residential units; and o One residential unit in a building or structure ancillary to a detached, semi- detached, or rowhouse on a parcel of urban land, if the detached, semi- detached, or rowhouse contains no more than two residential units and no other buildings or ancillary structures contain any residential units. 1.4.2 Removal of Housing as an Eligible D.C. Service Housing services are removed as an eligible service. Municipalities with by-laws that include a charge for housing services can no longer collect for this service. 1.4.3 New Statutory Exemption for Non-Profit Housing Non-profit housing units are exempt from D.C.s and D.C. instalment payments due after November 28, 2022. 1.4.4 New Statutory Exemptions for Affordable Units, Attainable Units, and Affordable Inclusionary Zoning Units Affordable units, attainable units, and inclusionary zoning units (affordable) are exempt from the payment of D.C.s, as follows: - Affordable Rental Units: Where rent is no more than 80% of the average market rent as defined by a new bulletin published by the Ministry of Municipal Affairs and Housing. - Affordable Owned Units: Where the price of the unit is no more than 80% of the average purchase price as defined by a new bulletin published by the Ministry of Municipal Affairs and Housing. Note: Section 1.4.13 provides further details of the Affordable Rental Unit and Affordable Owned Unit definitions, which have been modified through Bill 134 - Attainable Units: Excludes affordable units and rental units; will be defined as prescribed development or class of development and sold to a person who is at "arm's length" from the seller. o Note: for affordable and attainable units, the municipality shall enter into an agreement that ensures the unit remains affordable or attainable for 25 years. Watson & Associates Economists Ltd. PAGE 1-10 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Note: the above Affordable Owned and Rental Unit exemptions came into force as of June 1, 2024. At the time of writing, it is not known when the exemption for Attainable Units will be in force. - Inclusionary Zoning Units: Affordable housing units required under inclusionary zoning by-laws are exempt from a D.C. 1.4.5 Historical Level of Service Extended to Previous 15-Year Period Prior to Bill 23, the increase in need for service was limited by the average historical level of service calculated over the 10-year period preceding the preparation of the D.C. background study. This average is now extended to the historical 15-year period. 1.4.6 Revised Definition of Capital Costs The definition of capital costs has been revised to remove studies. Furthermore, the regulations to the Act may prescribe services for which land or an interest in land will be restricted. As at the time of writing, no services have been prescribed. 1.4.7 Mandatory Phase-in of a D.C. For all D.C. by-laws passed after January 1, 2022, the charge must be phased-in annually over the first five years the by-law is in force, as follows: - Year 1 - 80% of the maximum charge; - Year 2 - 85% of the maximum charge; - Year 3 - 90% of the maximum charge; - Year 4 - 95% of the maximum charge; and - Year 5 to expiry - 100% of the maximum charge. 1.4.8 D.C. By-law Expiry A D.C. by-law now expires 10 years after the day it comes into force (unless the by-law provides for an earlier expiry date). This extends the by-law's life from five years, prior to Bill 23. Watson & Associates Economists Ltd. PAGE 1-11 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 1.4.9 Installment Payments Non-profit housing development has been removed from the instalment payment section of the Act (subsection 26.1), as these units are now exempt from the payment of a D.C. 1.4.10 Rental Housing Discount The D.C. payable for rental housing development will be reduced based on the number of bedrooms in each unit as follows: - Three or more bedrooms - 25% reduction; - Two bedrooms - 20% reduction; and - All other bedroom quantities - 15% reduction. 1.4.11 Maximum Interest Rate for Instalments and Determination of Charge for Eligible Site Plan and Zoning By-law Amendment Applications No maximum interest rate was previously prescribed. As per Bill 23, the maximum interest rate is set at the average prime rate plus 1%. This maximum interest rate provision would apply to all instalment payments and eligible site plan and zoning by- law amendment applications occurring after November 28, 2022. 1.4.12 Requirement to Allocate Funds Received Annually, beginning in 2023, municipalities will be required to spend or allocate at least 60% of the monies in a reserve fund at the beginning of the year for water, wastewater, and services related to a highway. Other services may be prescribed by the regulation. 1.4.13 Bill 134: Affordable Homes and Good Jobs Act, 2023 The exemption for affordable residential units was included in the More Homes Built Faster Act (Bill 23), enacted by the Province on November 28, 2022. Under this legislation, affordable residential units were defined within subsection 4.1 of the D.C.A. and exemptions for D.C.s were provided in respect of this definition. While the legislation was enacted in November 2022, the ability for municipalities to implement the exemptions is based on the "Affordable Residential Units for the Purposes of the Development Charges Act, 1997 Bulletin" published by the Minister of Municipal Affairs Watson & Associates Economists Ltd. PAGE 1-12 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx and Housing. This bulletin informs the average market rent and purchase price to be used in determining which developments qualify as affordable residential units. This bulletin was published on April 5, 2024. Bill 134 received Royal Assent on December 4, 2023 and provides for a modification to the affordable residential unit definition by: - Introducing an income-based test for affordable rent and purchase price; and - Increasing the threshold for the market test of affordable rent and purchase price. This change provides the exemption based on the lesser of the two measures. Moreover, the rules in subsection 4.1 of the D.C.A. are unchanged with respect to: - The tenant and purchaser transacting the affordable unit being at arm's length; - The intent of maintaining the affordable residential unit definition for a 25-year period, requiring an agreement with the municipality (which may be registered on title); and - Exemptions for attainable residential units and associated rules (requiring further regulations). The following table provides the definitions provided through Bill 134 (underlining added for emphasis). Item Bill 134 Definition (Current D.C.A. Definition) Affordable residential unit rent (subsection 4.1 (2), para. 1) The rent is no greater than the lesser of, i. the income-based affordable rent for the residential unit set out in the Affordable Residential Units bulletin, as identified by the Minister of Municipal Affairs and Housing in accordance with subsection (5), and ii. the average market rent identified for the residential unit set out in the Affordable Residential Units bulletin. Average market rent/rent based on income (subsection 4.1 (5)) for the purposes of subsection 4.1 (2), para. 1 The Minister of Municipal Affairs and Housing shall, (a) determine the income of a household that, in the Minister's opinion, is at the 60th percentile of gross annual incomes for renter households in the applicable local municipality; and (b) identify the rent that, in the Minister's opinion, is equal to 30 per cent of the income of the household referred to in clause (a). Watson & Associates Economists Ltd. PAGE 1-13 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Item Bill 134 Definition (Current D.C.A. Definition) Affordable residential unit ownership (subsection 4.1 (3), para. 1) The price of the residential unit is no greater than the lesser of, i. the income-based affordable purchase price for the residential unit set out in the Affordable Residential Units bulletin, as identified by the Minister of Municipal Affairs and Housing in accordance with subsection (6), and ii. 90 per cent of the average purchase price identified for the residential unit set out in the Affordable Residential Units bulletin. Average market purchase price/purchase price based on income (subsection 4.1 (6)) for the purposes of subsection 4.1 (3), para. 1 The Minister of Municipal Affairs and Housing shall, (a) determine the income of a household that, in the Minister's opinion, is at the 60th percentile of gross annual incomes for households in the applicable local municipality; and (b) identify the purchase price that, in the Minister's opinion, would result in annual accommodation costs equal to 30 per cent of the income of the household referred to in clause (a) Note: the Affordable Unit exemption came into force on June 1, 2024 1.5 Bill 185: Cutting Red Tape to Build More Homes Act, 2024 On April 10, 2024, the Province released Bill 185: Cutting Red Tape to Build More Homes Act. The Bill received Royal Assent on June 6, 2024. This Bill reversed many of the key changes that were implemented through Bill 23. The following sections provide a summary of the changes. 1.5.1 Revised Definition of Capital Costs Bill 185 reversed the capital cost amendments of Bill 23 by reinstating studies as an eligible capital cost. The following paragraphs were added to subsection 5(3) of the D.C.A.: 5. Costs to undertake studies in connection with any of the matters referred to in paragraphs 1 to 4. 6. Costs of the development charge background study required under section 10. Watson & Associates Economists Ltd. PAGE 1-14 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 1.5.2 Removal of the Mandatory Phase-in As noted in Section 1.4.7 above, Bill 23 required the phase-in of charges imposed in a D.C. by-law over a five-year term for any by-laws passed after January 1, 2022. Bill 185 removed this mandatory phase-in. This change is effective for any D.C. by-laws passed after Bill 185 came into effect. For site plan and zoning by-law amendment applications that were made prior to Bill 185 receiving Royal Assent, the charges payable will be the charges that were in place on the day the planning application was made (i.e., including the mandatory phase-in). 1.5.3 Process for Minor Amendments to D.C. By-laws Section 19 of the D.C.A. requires that a municipality must follow sections 10 through 18 of the D.C.A. (with necessary modifications) when amending D.C. by-laws. Sections 10 through 18 of the D.C.A. generally require the following: - Completion of a D.C. background study, including the requirement to post the background study 60 days prior to passage of the D.C. by-law; - Passage of a D.C. by-law within one year of the completion of the D.C. background study; - A public meeting, including notice requirements; and - The ability to appeal the by-law to the Ontario Land Tribunal. Bill 185 allows municipalities to undertake minor amendments to D.C. by-laws for the following purposes without adherence to the requirements noted above (with the exception of the notice requirements): 1. To repeal a provision of the D.C. by-law specifying the date the by-law expires or to amend the provision to extend the expiry date (subject to the 10-year limitations provided in the D.C.A.); 2. To impose D.C.s for studies, including the D.C. background study; and 3. To remove the provisions related to the mandatory phase-in of D.C.s. Minor amendments related to items 2 and 3 noted above may be undertaken only if the D.C. by-law being amended was passed after November 28, 2022, and before Bill 185 Watson & Associates Economists Ltd. PAGE 1-15 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx took effect. Moreover, the amending by-law must be passed within six months of Bill 185 coming into effect. Notice requirements for these minor amending by-laws are similar to the typical notice requirements, with the exception of the requirement to identify the last day for appealing the by-law (as these provisions do not apply). 1.5.4 Reduction of D.C. Rate Freeze Timeframe Bill 108 (see Section 1.3.1 above) provides for the requirement to freeze the D.C.s imposed on developments subject to a site plan and/or a zoning by-law amendment application. The D.C. rate for these developments is "frozen" at the rates that were in effect at the time the site plan and/or zoning by-law amendment application was submitted (subject to applicable interest). Once the application is approved by the municipality, if the date the D.C. is payable is more than two years from the approval date, the D.C. rate freeze would no longer apply. Bill 185 reduced the two-year timeframe to 18 months. 1.5.5 Modernizing Public Notice Requirements The D.C.A. sets out the requirements for municipalities to give notice of public meetings and of by-law passage. These requirements are prescribed in sections 9 and 10 of O. Reg. 82/98 and include giving notice in a newspaper of sufficiently general circulation in the area to which the by-law would apply. The regulatory changes modernized public notice requirements by allowing municipalities to provide notice on a municipal website if a local newspaper is not available. Watson & Associates Economists Ltd. H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Chapter 2 Current Township of Oro- Medonte Policy Watson & Associates Economists Ltd. PAGE 2-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 2. Current Township of Oro-Medonte Policy 2.1 Schedule of Charges On October 23, 2019, the Township of Oro-Medonte passed By-law, 2019-100 under the D.C.A. This by-law imposes D.C.s for residential and non-residential uses. The table below provides the rates currently in effect, as at January 1, 2024. Table 2-1 Township of Oro-Medonte Current D.C. Rates January 1, 2024 2.2 Services Covered The following services are covered under By-law 2019-100: Township-wide Services: - Services Related to a Highway; - Fire Protection Services; - Parks and Recreation Services; and - Studies. Area Specific - Horseshoe Valley Settlement Area: - Water Services; and Non-Residential Service Single & Semi Detached Multiples Apartments 2 Bedrooms + Apartments Bachelor and 1 Bedroom Special Care/Special Dwelling Units per sq.ft. Township Wide Services: Services Related to a Highway 7,961 6,461 4,663 3,257 2,937 3.57 Fire Protection Services 2,276 1,847 1,332 931 841 0.87 Parks and Recreation Services 5,532 4,491 3,239 2,264 2,040 1.15 Studies 858 694 501 349.00 316.00 0.32 Total Township Wide Services 16,627 13,493 9,735 6,801 6,134 5.91 Horseshoe Valley Settlement Area Wastewater Services 12,582 12,582 12,582 12,582 12,582 - Water Services 12,905 11,762 10,390 9,318 9,075 3.59 Total Horseshoe Valley Settlement Area 42,114 37,837 32,707 28,701 27,791 9.50 Warminster Water Services 12,250 12,250 12,250 12,250 9,075 - Total Warminster 28,877 25,743 21,985 19,051 15,209 - Residential Watson & Associates Economists Ltd. PAGE 2-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx - Wastewater Services. Area Specific - Warminster Water Service Area: - Water Services. 2.3 Timing of D.C. Calculation and Payment Development charges shall be calculated and payable in full in money or by provision of services as may be agreed upon, or by credit granted under the Act, on the date that the first building permit is issued in relation to a building or structure on land to which a development charge applies. 2.4 Indexing Rates shall be adjusted, without amendment to the by-law, annually on January 1, in accordance with the Statistics Canada Quarterly, Non-Residential Building Construction Price Index (Table 18-10-0276-02).[1] 2.5 Redevelopment Allowance In the case of the re-development involving the demolition and replacement of all or part of a building or structure: (1) A credit offsetting the development charges payable shall be allowed, provided that the land was improved by occupied structures (or structures capable of occupancy) within the five years prior to the issuance of the demolition permit, and the building permit has been issued for the development or redevelopment within five years from the date the demolition permit has been issued; and [1] Ontario Regulation (O. Reg.) 82/98 referenced "The Statistics Canada Quarterly, Construction Price Statistics, catalogue number 62-007" as the index source. Since implementation, Statistics Canada has modified this index twice and the above-noted index is the most current. The draft by-law provided herein refers to O. Reg. 82/98 to ensure traceability should this index continue to be modified over time. Watson & Associates Economists Ltd. PAGE 2-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx (2) The credit shall be calculated as follows: a. For residential buildings, the credit shall be equivalent to the number of dwelling units demolished multiplied by the applicable residential development charge in place at the time the development charge is payable under this by-law; b. For non-residential buildings, the credit shall be equivalent to the gross floor area demolished multiplied by the applicable non-residential development charge in place at the time the development charge is payable under this by-law; Provided that such amounts shall not exceed, in total, the amount of the D.C.s otherwise payable with respect to the redevelopment. 2.6 Exemptions The following non-statutory exemptions are provided under By-law 2019-100. - Farm buildings; - Hospitals; and - Places of worship. Watson & Associates Economists Ltd. H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Chapter 3 Anticipated Development in the Township of Oro-Medonte Watson & Associates Economists Ltd. PAGE 3-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 3. Anticipated Development in the Township of Oro-Medonte 3.1 Requirement of the Act The growth forecast contained in this chapter (with supplemental tables in Appendix A) provides for the anticipated development for which the Township of Oro-Medonte will be required to provide services over a 10-year (2024 to 2034) time horizon. Chapter 4 provides the methodology for calculating a D.C. as per the D.C.A. Figure 4-1 presents this methodology graphically. It is noted in the first box of the schematic that in order to determine the D.C. that may be imposed, it is a requirement of subsection 5 (1) of the D.C.A. that "the anticipated amount, type and location of development, for which development charges can be imposed, must be estimated." 3.2 Basis of Population, Household and Non-Residential Gross Floor Area Forecast The D.C. growth forecast has been derived by Watson in consultation with the Township of Oro-Medonte. In preparing the growth forecast, the following information sources were consulted to assess the residential and non-residential development potential for the Township over the forecast period, including: - Township of Oro-Medonte Official Plan, Office Consolidation March 2023; - Simcoe County 2051 Land Needs Assessment, June 2022, Hemson Consulting Ltd.; - Township of Oro-Medonte Employment Lands Strategy Final Report, February 2021, by Watson & Associates Economists Ltd. - Township of Oro-Medonte 2019 Development Charges Background Study and Draft By-law Report, August 23, 2019, by Watson & Associates Economists Ltd. - 2011, 2016 and 2021 population, household and employment Census data; - Historical residential building permit data over the 2014 to 2023 period; - Residential and non-residential supply opportunities as identified by Township of Oro-Medonte staff; and Watson & Associates Economists Ltd. PAGE 3-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx - Discussions with Township staff regarding anticipated residential and non- residential development in the Township of Oro-Medonte. 3.3 Summary of Growth Forecast A detailed analysis of the residential and non-residential growth forecasts is provided in Appendix A and the methodology employed is illustrated in Figure 3-1. The discussion provided herein summarizes the anticipated growth for the Township and describes the basis for the forecast. The results of the residential growth forecast analysis are summarized in Table 3-1 below, and Schedule 1 in Appendix A. As identified in Table 3-1 and Appendix A - Schedule 1, population in the Township of Oro-Medonte (excluding census undercount) is anticipated to reach approximately 28,230 by mid-2034, resulting in an increase of approximately 4,370 persons. [1] Figure 3-1 Population and Household Forecast Model Intensification Designated Lands Servicing Capacity Residential Units in the Development Process Employment Market by Local Municipality, Economic Outlook Local, region and Provincial Forecast of Residential Units Decline in Existing Population Net Population Increase Historical Housing Construction DEMAND SUPPLY Occupancy Assumptions Gross Population Increase [1] The population figures used in the calculation of the 2024 D.C. exclude the net Census undercount, which is estimated at approximately 4.2%. Population figures presented herein have been rounded. Watson & Associates Economists Ltd. PAGE 3-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table 3-1 Township of Oro-Medonte Residential Growth Forecast Summary Population Institutional Population Population Excluding Institutional Population Singles & Semi- Detached Multiple Dwellings[2] Apartments[3] Other Total Households Equivalent Institutional Households 20,930 20,078 43 20,035 7,292 115 50 19 7,476 39 2.686 21,930 21,036 31 21,005 7,755 85 130 30 8,000 28 2.630 23,990 23,017 67 22,950 8,365 95 140 25 8,625 61 2.669 24,870 23,860 70 23,790 8,684 95 149 25 8,953 64 2.665 29,430 28,230 83 28,147 9,826 253 554 25 10,658 75 2.649 1,000 958 -12 970 463 -30 80 11 524 -11 2,060 1,981 36 1,945 610 10 10 -5 625 33 880 843 3 840 319 0 9 0 328 3 4,560 4,370 13 4,357 1,142 158 405 0 1,705 11 Mid 2024 - Mid 2034 Population (Including Census Undercount)[1] Year Excluding Census Undercount Housing Units Person Per Unit (P.P.U.): Total Population/ Total Households Historical Forecast Incremental Mid 2011 - Mid 2016 Mid 2016 - Mid 2021 Mid 2011 Mid 2016 Mid 2021 Mid 2024 Mid 2034 Mid 2021 - Mid 2024 [1] Population includes the Census undercount estimated at approximately 4.2% and has been rounded. [2] Includes townhouses and apartments in duplexes. [3] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units. Notes: Numbers may not add due to rounding. Source: Watson & Associates Economists Ltd. Watson & Associates Economists Ltd. PAGE 3-4 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Figure 3-2 Township of Oro-Medonte Annual Housing Forecast [1] 166 134 160 181 154 95 119 131 137 60 130 175 175 175 175 175 175 175 175 175 134 0 20 40 60 80 100 120 140 160 180 200 Housing Units Years Historical Low Density Medium Density High Density Historical Average [1] Growth forecast represents calendar year. Source: Historical housing activity derived from Township of Oro-Medonte building permit data, 2014 to 2023. Watson & Associates Economists Ltd. PAGE 3-5 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Provided below is a summary of the key assumptions and findings regarding the Township of Oro-Medonte D.C. growth forecast: 1. Unit Mix (Appendix A - Schedules 1, 5 and 6) - The housing unit mix for the Township was derived from a detailed review of historical development activity (as per Schedule 6), as well as active residential development applications (as per Schedule 5) and discussions with Township staff regarding anticipated development trends for the Township of Oro-Medonte. - Based on the above indicators, the 2024 to 2034 household growth forecast for the Township is comprised of a unit mix of 67% low density units (single detached and semi-detached), 9% medium density (multiples except apartments) and 24% high density (bachelor, 1-bedroom and 2- bedroom apartments). 2. Geographic Location of Residential Development (Appendix A - Schedule 2) - Schedule 2 summarizes the anticipated amount, type, and location of development by area for the Township of Oro-Medonte - In accordance with forecast demand and available land supply, the amount and percentage of forecast housing growth between 2024 and 2034 by development location is summarized below. Watson & Associates Economists Ltd. PAGE 3-6 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table 3-2 Township of Oro-Medonte Geographic Location of Residential Development Development Location Amount of Housing Growth, 2024 to 2034 Percentage of Housing Growth, 2024 to 2034 Horseshoe Valley (Water) 568 33% Warminster (Water) 49 3% Craighurst (Water) 511 30% Remaining Water Serviced Area 114 7% Non-Municipal Water Serviced Areas[1] 463 27% Township of Oro-Medonte 1,705 100% [1] Includes growth in areas with no municipal water servicing. This includes private serviced and unserviced areas. Note: Figures may not sum precisely due to rounding. 3. Planning Period - Short- and longer-term time horizons are required for the D.C. process. The D.C.A. limits the planning horizon for transit services to a 10-year planning horizon. All other services can utilize a longer planning period if the municipality has identified the growth-related capital infrastructure needs associated with the longer-term growth planning period. 4. Population in New Units (Appendix A - Schedules 3 and 4) - The number of housing units to be constructed by 2034 in the Township of Oro-Medonte over the forecast period is presented in Table 3-1. Over the 2024 to 2034 forecast period, the Township is anticipated to average approximately 171 new housing units per year. Watson & Associates Economists Ltd. PAGE 3-7 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx - Institutional population [1] is anticipated to increase by approximately 10 people between 2024 to 2034. - Population in new units is derived from Schedules 3 and 4, which incorporate historical development activity, anticipated units (see unit mix discussion) and average persons per unit (P.P.U.) by dwelling type for new units. - Schedule 7a summarizes the average P.P.U. assumed for new housing units by age and type of dwelling based on Statistics Canada 2021 custom Census data for the Township of Oro-Medonte. Due to data limitations high density P.P.U. data was derived from the Simcoe County Census Division which includes the Township of Oro-Medonte, and is outlined in Schedule 7b. The total calculated P.P.U. for all density types has been adjusted accordingly to account for the P.P.U. trends which has been recently experienced in both new and older units. Forecasted 25-year average P.P.U.s by dwelling type are as follows: o Low density: 2.997 o Medium density: 2.401 o High density: 1.620 5. Existing Units and Population Change (Appendix A - Schedules 3 and 4) - Existing households for mid-2024 are based on the 2021 Census households, plus estimated residential units constructed between mid- 2021 to the beginning of the growth period, assuming a minimum six- month lag between construction and occupancy (see Schedule 3). - The change in average occupancy levels for existing housing units is calculated in Schedules 3 and 4.[2] The forecast population change in existing households over the 2024 to 2034 forecast period is forecast to decline by approximately 100. [1] Institutional population largely includes special care facilities such as nursing home or residences for senior citizens. A P.P.U. of 1.100 depicts 1-bedroom and 2-or-more- bedroom units in collective households. [2] Change in occupancy levels for existing households occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. Watson & Associates Economists Ltd. PAGE 3-8 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 6. Employment (Appendix A - Schedules 9a, 9b and 9c) - The employment projections provided herein are largely based on the activity rate method, which is defined as the number of jobs in the Township divided by the number of residents. Key employment sectors include primary, industrial, commercial/population-related, institutional, and work at home, which are considered individually below. - 2016 employment data [1],[2] (place of work) for the Township of Oro- Medonte is outlined in Schedule 9a. The 2016 employment base is comprised of the following sectors: o 95 primary (2%); o 1,280 work at home employment (26%); o 1,540 industrial (32%); o 1,288 commercial/population-related (26%); and o 695 institutional (14%). - The 2016 employment by usual place of work, including work at home, is 4,905. An additional 1,240 employees have been identified for the Township of Oro-Medonte in 2016 that have no fixed place of work (N.F.P.O.W.).[3] - Total employment, including work at home and N.F.P.O.W. for the Township of Oro-Medonte is anticipated to reach approximately 9,070 by mid-2034. This represents an employment increase of approximately 1,490 for the 10-year forecast period. - Schedule 9b, Appendix A, summarizes the employment forecast, excluding work at home employment and N.F.P.O.W. employment, which is the basis for the D.C. employment forecast. The impact on municipal [1] 2016 employment is based on Statistics Canada 2016 Place of Work Employment dataset by Watson & Associates Economists Ltd. [2] Statistics Canada 2021 Census place of work employment data has been reviewed. The 2021 Census employment results have not been utilized due to a significant increase in work at home employment captured due to Census enumeration occurring during the provincial COVID-19 lockdown from April 1, 2021 to June 14, 2021. [2] No fixed place of work is defined by Statistics Canada as "persons who do not go from home to the same workplace location at the beginning of each shift. Such persons include building and landscape contractors, travelling salespersons, independent truck drivers, etc." Watson & Associates Economists Ltd. PAGE 3-9 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx services from work at home employees has already been included in the population forecast. The need for municipal services related to N.F.P.O.W. employees has largely been included in the employment forecast by usual place of work (i.e., employment and gross floor area generated from N.F.P.O.W. construction employment). Furthermore, since these employees have no fixed work address, they cannot be captured in the non-residential G.F.A. calculation. Accordingly, work at home and N.F.P.O.W. employees have been removed from the D.C.A. employment forecast and calculation. - Total employment for the Township of Oro-Medonte (excluding work at home and N.F.P.O.W. employment) is anticipated to reach approximately 5,300 by mid-2034. This represents an employment increase of approximately 790 for the 10-year forecast period. [1] 7. Non-Residential Sq.ft. Estimates (G.F.A.), Appendix A - Schedule 9b) - Square footage estimates were calculated in Schedule 9b based on the following employee density assumptions: o 3,000 sq.ft. per employee for primary; o 1,500 sq.ft. per employee for industrial; o 500 sq.ft. per employee for commercial/population-related; and o 690 sq.ft. per employee for institutional employment. - The Township-wide incremental G.F.A. is anticipated to increase by 752,300 sq.ft. over the 10-year forecast period. - In terms of percentage growth, the 2024 to 2034 incremental G.F.A. forecast by sector is broken down as follows: o Primary - 3% o industrial - 62%; o commercial/population-related - 19%; and [1] G.F.A. and employment associated within special care institutional dwellings treated as residential, resulting in an institutional employment difference between Schedules 9a and 9b. Total employment growth in Schedule 9b (excluding work at home and N.F.P.O.W. employment) has been downwardly adjusted to account for institutional employment associated with special care facilities. Total employment in Schedule 9b is anticipated to reach approximately 5,300 by mid-2034. Watson & Associates Economists Ltd. PAGE 3-10 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx o institutional - 16%. 8. Geographic Location of Non-Residential Development (Appendix A, Schedule 9c) - Schedule 9c summarizes the anticipated amount, type and location of non-residential development by area for the Township of Oro-Medonte. - The amount and percentage of forecast total non-residential growth between 2024 and 2034 by development location is summarized below. Table 3-3 Township of Oro-Medonte Geographic Location of Non-Residential Development Development Location Amount of Non- Residential G.F.A. (sq.ft.), 2024 to 2034 Percentage of Non-Residential G.F.A., 2024 to 2034 Horseshoe Valley (Water) 133,100 18% Warminster (Water) 7,100 1% Craighurst (Water) 51,500 7% Remaining Water Serviced Area 60,300 8% Non-Municipal Water Serviced Areas[1] 500,300 66% Township of Oro-Medonte 752,300 100% [1] Includes growth in areas with no municipal water servicing. This includes private serviced and unserviced areas. Note: Figures may not sum precisely due to rounding. Watson & Associates Economists Ltd. H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Chapter 4 The Approach to the Calculation of the Charge Watson & Associates Economists Ltd. PAGE 4-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 4. The Approach to the Calculation of the Charge 4.1 Introduction This chapter addresses the requirements of subsection 5 (1) of the D.C.A. with respect to the establishment of the need for service which underpins the D.C. calculation. These requirements are illustrated schematically in Figure 4-1. 4.2 Services Potentially Involved Table 4-1 lists the full range of municipal services that are provided within the Township. A number of these services are not included in the list of eligible services provided in subsection 2 (4) of the D.C.A. as being ineligible for inclusion in D.C.s. These are shown as "ineligible" on Table 4-1. Two ineligible costs defined in subsection 5 (3) of the D.C.A. are "computer equipment" and "rolling stock with an estimated useful life of (less than) seven years." In addition, local roads are covered separately under subdivision agreements and related means (as are other local services). Services that are potentially eligible for inclusion in the Township's D.C. are indicated with a "Yes." 4.3 Increase in the Need for Service The D.C. calculation commences with an estimate of "the increase in the need for service attributable to the anticipated development," for each service to be covered by the by-law. There must be some form of link or attribution between the anticipated development and the estimated increase in the need for service. While the need could conceivably be expressed generally in terms of units of capacity, subsection 5 (1) 3, which requires that Township Council indicate that it intends to ensure that such an increase in need will be met, suggests that a project-specific expression of need would be most appropriate. Watson & Associates Economists Ltd. PAGE 4-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Figure 4-1 The Process of Calculating a Development Charge under the Act that must be followed 8. Specified Local Services Anticipated Development 1. Estimated Increase in Need for Service Ceiling Re: Increased Need Needs That Will Be Met Examination of the Long-term Capital and Operating Costs for Capital Infrastructure D.C. Needs By Service Less: Uncommitted Excess Capacity Less: Benefit To Existing Development Less: Grants, Subsidies and Other Contributions D.C. By-law(s) Spatial Applicability D.C. Net Capital Costs Costs for new development vs. existing development for the term of the by-law and the balance of the period Amount of the Charge By Type of Development (including apportionment of costs - residential and non-residential) Financing, Inflation and Investment Considerations 3. 4. 5. 6. 11. 12. 15. 16. 13. 14. 9. Subdivision Agreements and Consent Provisions Consideration of exemptions, phase-ins, etc. 1 3 2 Non-Transit Services Historical Service Standard 4a. Transit Services Forward-looking Service Standard 4b. Asset Management Plan for All Capital Projects to be Funded by D.C.s 7. Non-Transit Services Financially Sustainable 7a. Transit Services Detailed Requirements 7b. 10. Municipal Services 2. Eligible Services Ineligible Services Tax Base, User Rates, etc. Watson & Associates Economists Ltd. PAGE 4-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table 4-1 Categories of Municipal Services to be Addressed as Part of the Calculation Eligibility for Inclusion in the D.C. Calculation Description Yes Municipality provides the service - service has been included in the D.C. calculation. No Municipality provides the service - service has not been included in the D.C. calculation. n/a Municipality does not provide the service. Ineligible Service is ineligible for inclusion in the D.C. calculation. Categories of Municipal Services Eligibility for Inclusion in the D.C. Calculation Service Components Maximum Potential D.C. Recovery % 1. Services Related to a Highway Yes Yes Yes No Yes Yes Yes 1.1 Arterial roads 1.2 Collector roads 1.3 Bridges, culverts and roundabouts 1.4 Local municipal roads 1.5 Traffic signals 1.6 Sidewalks and streetlights 1.7 Active transportation 100 100 100 0 100 100 100 2. Other Transportation Services n/a n/a Ineligible Ineligible Yes Yes n/a n/a 2.1 Transit vehicles1 & facilities 2.2 Other transit infrastructure 2.3 Municipal parking spaces - indoor 2.4 Municipal parking spaces - outdoor 2.5 Works yards 2.6 Rolling stock1 2.7 Ferries 2.8 Airport 100 100 0 0 100 100 100 100 3. Stormwater Drainage and Control Services No No No 3.1 Main channels and drainage trunks 3.2 Channel connections 3.3 Retention/detention ponds 100 100 100 1with 7+ year life-time Watson & Associates Economists Ltd. PAGE 4-4 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Categories of Municipal Services Eligibility for Inclusion in the D.C. Calculation Service Components Maximum Potential D.C. Recovery % 4. Fire Protection Services Yes Yes Yes 4.1 Fire stations 4.2 Fire pumpers, aerials and rescue vehicles1 4.3 Small equipment and gear 100 100 100 5. Parks Services (i.e. Parks and Open Space) Ineligible Yes Yes Yes Yes Yes 5.1 Acquisition of land for parks, woodlots and E.S.A.s 5.2 Development of area municipal parks 5.3 Development of district parks 5.4 Development of municipal- wide parks 5.5 Development of special purpose parks 5.6 Parks rolling stock1 and yards 0 100 100 100 100 100 6. Recreation Services Yes Yes 6.1 Arenas, indoor pools, fitness facilities, community centres, etc. (including land) 6.2 Recreation vehicles and equipment1 100 100 7. Library Services n/a n/a n/a 7.1 Public library space (incl. furniture and equipment) 7.2 Library vehicles¹ 7.3 Library materials 100 100 100 8. Emergency Preparedness Services No No No 8.1 Facility space (incl. furniture and equipment) 8.2 Vehicles1 8.3 Equipment 100 100 100 9. Electrical Power Services Ineligible Ineligible Ineligible 9.1 Electrical substations 9.2 Electrical distribution system 9.3 Electrical system rolling stock 0 0 0 1with 7+ year life-time Watson & Associates Economists Ltd. PAGE 4-5 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Categories of Municipal Services Eligibility for Inclusion in the D.C. Calculation Service Components Maximum Potential D.C. Recovery % 10. Provision of Cultural, Entertainment and Tourism Facilities and Convention Centres Ineligible Ineligible 10.1 Cultural space (e.g. art galleries, museums and theatres) 10.2 Tourism facilities and convention centres 0 0 11. Wastewater Services No No No No 11.1 Treatment plants 11.2 Sewage trunks 11.3 Local systems 11.4 Vehicles and equipment1 100 100 0 100 12. Water Supply Services Yes Yes n/a n/a 12.1 Treatment plants 12.2 Distribution systems 12.3 Local systems 12.4 Vehicles and equipment1 100 100 0 100 13. Waste Management Services Ineligible Ineligible n/a n/a 13.1 Landfill collection, transfer vehicles and equipment 13.2 Landfills and other disposal facilities 13.3 Waste diversion facilities 13.4 Waste diversion vehicles and equipment1 0 0 100 100 14. Policing Services No n/a n/a 14.1 Policing detachments 14.2 Policing rolling stock1 14.3 Small equipment and gear 100 100 100 15. Homes for the Aged n/a n/a 15.1 Homes for the aged space 15.2 Vehicles1 100 100 16. Child Care and Early Years Programs n/a n/a 16.1 Childcare space 16.2 Vehicles1 100 100 17. Health n/a n/a 17.1 Health department space 17.2 Health department vehicles¹ 100 100 18. Social Housing n/a 18.1 Social housing space 100 19. Provincial Offences Act Yes Yes 19.1 P.O.A. space 19.2 P.O.A. vehicles1 100 100 20. Social Services n/a 20.1 Social service space 100 1with 7+ year life-time Watson & Associates Economists Ltd. PAGE 4-6 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Categories of Municipal Services Eligibility for Inclusion in the D.C. Calculation Service Components Maximum Potential D.C. Recovery % 21. Ambulance n/a n/a 21.1 Ambulance station space 21.2 Vehicles1 100 100 22. Hospital Provision Ineligible 22.1 Hospital capital contributions 0 23. Provision of Headquarters for the General Administration of Municipalities and Area Municipal Boards Ineligible Ineligible Ineligible 23.1 Office space 23.2 Office furniture 23.3 Computer equipment 0 0 0 24. Other Services Yes Yes 24.1 Studies in connection with acquiring buildings, rolling stock, materials and equipment, and improving land and facilities, including the D.C. background study cost 24.2 Interest on money borrowed to pay for growth-related capital 100 0-100 1with a 7+ year lifetime 4.4 Local Service Policy Some of the need for services generated by additional development consists of local services related to a plan of subdivision. As such, they will be required as a condition of subdivision agreements or consent conditions. The Township's detailed Local Service Policy is provided in Appendix E. 4.5 Capital Forecast Paragraph 7 of subsection 5 (1) of the D.C.A. requires that "the capital costs necessary to provide the increased services must be estimated." The Act goes on to require two Watson & Associates Economists Ltd. PAGE 4-7 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx potential cost reductions and the regulation sets out the way in which such costs are to be presented. These requirements are outlined below. These estimates involve capital costing of the increased services discussed above. This entails costing actual projects or the provision of service units, depending on how each service has been addressed. The capital costs include: a) costs to acquire land or an interest therein (including a leasehold interest); b) costs to improve land; c) costs to acquire, lease, construct or improve buildings and structures; d) costs to acquire, lease or improve facilities, including rolling stock (with a useful life of 7 or more years), furniture and equipment (other than computer equipment), materials acquired for library circulation, reference, or information purposes; e) costs to undertake studies in connection with any of the matters referred to in paragraphs a to d; f) costs of the development charge background study required under section 10; and g) interest on money borrowed to pay for the above-referenced costs; In order for an increase in need for service to be included in the D.C. calculation, Township Council must indicate "that it intends to ensure that such an increase in need will be met" (subsection 5 (1) 3). This can be done if the increase in service forms part of a Council-approved Official Plan, capital forecast, or similar expression of the intention of Council (O. Reg. 82/98 section 3). The capital program contained herein reflects the Township's approved and proposed capital budgets and master servicing/needs studies. 4.6 Treatment of Credits Section 8, paragraph 5, of O. Reg. 82/98 indicates that a D.C. background study must set out "the estimated value of credits that are being carried forward relating to the service." Section 17, paragraph 4, of the same regulation indicates that "the value of Watson & Associates Economists Ltd. PAGE 4-8 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx the credit cannot be recovered from future D.C.s," if the credit pertains to an ineligible service. This implies that a credit for eligible services can be recovered from future D.C.s. As a result, this provision should be made in the calculation, in order to avoid a funding shortfall with respect to future service needs. There are no outstanding credits to be included in the D.C. calculations. 4.7 Classes of Services Section 7 of the D.C.A. states that a D.C. by-law may provide for any D.C. eligible service or the capital costs with respect to those services. Furthermore, a class may be composed of any number or combination of services and may include parts or portions of each D.C. eligible service. These provisions allow for services to be grouped together to create a class for the purposes of the D.C. by-law and D.C. reserve funds. The D.C. calculations and by-law provided herein have identified a class of service for growth studies. 4.8 Existing Reserve Funds Section 35 of the D.C.A. states that: "The money in a reserve fund established for a service may be spent only for capital costs determined under paragraphs 2 to 7 of subsection 5 (1)." There is no explicit requirement under the D.C.A. calculation method set out in subsection 5 (1) to net the outstanding reserve fund balance as part of making the D.C. calculation; however, section 35 does restrict the way in which the funds are used in the future. For services that are subject to a per capita based, service level "cap," the reserve fund balance should be applied against the development-related costs for which the charge was imposed once the project is constructed (i.e., the needs of recent growth). This cost component is distinct from the development-related costs for the future forecast periods, which underlie the D.C. calculation herein. The alternative would involve the Township spending all reserve fund monies prior to renewing each by-law, which would not be a sound basis for capital budgeting. Thus, the Township will use these reserve funds for the Township's cost share of applicable Watson & Associates Economists Ltd. PAGE 4-9 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx development-related projects, which are required but have not yet been undertaken, as a way of directing the funds to the benefit of the development that contributed them (rather than to future development, which will generate the need for additional facilities directly proportionate to future growth). The Township's D.C. Reserve Fund balances by service as of December 31, 2023, are shown below: Table 4-2 Summary of Development Charges Reserve Fund Balances As of December 31, 2023 Service Balance as of December 31, 2023 Services Related to a Highway $1,877,068 Fire Protection Services ($2,266,217) Parks and Recreation Services $3,376,309 Growth Studies $251,184 Water Services $393,953 Total $3,238,344 Note: Amounts in brackets are deficit balances. 4.9 Deductions The D.C.A. potentially requires that four deductions be made to the increase in the need for service. These relate to: - the level of service ceiling; - uncommitted excess capacity; - benefit to existing development; and - anticipated grants, subsidies, and other contributions. The requirements behind each of these reductions are addressed below. Watson & Associates Economists Ltd. PAGE 4-10 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 4.9.1 Reduction Required by Level of Service Ceiling This is designed to ensure that the increase in need included in section 4.3 does "not include an increase that would result in the level of service [for the additional development increment] exceeding the average level of the service provided in the municipality over the 15-year period immediately preceding the preparation of the background study" (D.C.A., subsection 5 (1) 4). O. Reg. 82/98 (section 4) goes further to indicate that "both the quantity and quality of a service shall be taken into account in determining the level of service and the average level of service." In many cases, this can be done by establishing a quantity measure in terms of units as floor area, land area, or road length per capita and a quality measure, in terms of the average cost of providing such units based on replacement costs, engineering standards, or recognized performance measurement systems, depending on circumstances. When the quantity and quality factors are multiplied together, they produce a measure of the level of service which meets the requirements of the Act, i.e., cost per unit. With respect to transit services, the changes to the Act introduced in 2015 have provided for an alternative method for calculating the service standard ceiling. Transit services must now utilize a forward-looking service standard analysis, described later in this section. The average service level calculation sheets for each service component in the D.C. calculation are set out in Appendix B. 4.9.2 Reduction for Uncommitted Excess Capacity Paragraph 5 of subsection 5 (1) requires a deduction from the increase in the need for service attributable to the anticipated development that can be met using the Township's "excess capacity," other than excess capacity which is "committed." "Excess capacity" is undefined, but in this case must be able to meet some or all of the increase in need for service, in order to potentially represent a deduction. The deduction of uncommitted excess capacity from the future increase in the need for service would normally occur as part of the conceptual planning and feasibility work associated with justifying and sizing new facilities, e.g., if a road widening to accommodate increased traffic is not required because sufficient excess capacity is Watson & Associates Economists Ltd. PAGE 4-11 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx already available, then widening would not be included as an increase in need, in the first instance. 4.9.3 Reduction for Benefit to Existing Development Section 5 (1) 6 of the D.C.A. provides that, "The increase in the need for service must be reduced by the extent to which an increase in service to meet the increased need would benefit existing development." The general guidelines used to consider benefit to existing development included: - The repair or unexpanded replacement of existing assets that are in need of repair; - An increase in average service level of quantity or quality (compare water as an example); - The elimination of a chronic servicing problem not created by growth; and - Providing services where none previously existed (generally considered for water or wastewater services). This step involves a further reduction in the need, by the extent to which such an increase in service would benefit existing development. The level of service cap in section 4.9.1 is related but is not the identical requirement. Sanitary, storm, and water trunks are highly localized to growth areas and can be more readily allocated in this regard than other services such as services related to a highway, which do not have a fixed service area. Where existing development has an adequate service level which will not be tangibly increased by an increase in service, no benefit would appear to be involved. For example, where expanding existing library facilities simply replicates what existing residents are receiving, they receive very limited (or no) benefit as a result. Alternatively, where a clear existing service problem is to be remedied, a deduction should be made accordingly. In the case of services such as recreation facilities, community parks, libraries, etc., the service is typically provided on a Municipal-wide system basis. For example, facilities of the same type may provide different services (i.e., leisure pool vs. competitive pool), different programs (i.e., hockey vs. figure skating), and different time availability for the same service (i.e., leisure skating available on Wednesdays in one arena and Thursdays in another). As a result, residents will travel to different facilities to access Watson & Associates Economists Ltd. PAGE 4-12 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx the services they want at the times they wish to use them, and facility location generally does not correlate directly with residence location. Even where it does, displacing users from an existing facility to a new facility frees up capacity for use by others and generally results in only a very limited benefit to existing development. Furthermore, where an increase in demand is not met for a number of years, a negative service impact to existing development is involved for a portion of the planning period. 4.9.4 Reduction for Anticipated Grants, Subsidies and Other Contributions This step involves reducing the capital costs necessary to provide the increased services by capital grants, subsidies, and other contributions (including direct developer contributions required due to the local service policy) made or anticipated by Council and in accordance with various rules such as the attribution between the share related to new vs. existing development. That is, some grants and contributions may not specifically be applicable to growth or where Council targets fundraising as a measure to offset impacts on taxes (O. Reg. 82/98, section 6). 4.10 Municipal-wide vs. Area Rating This step involves determining whether all of the subject costs are to be recovered on a uniform municipal-wide basis or whether some or all are to be recovered on an area- specific basis. Under the amended D.C.A., it is now mandatory to "consider" area rating of services (providing charges for specific areas and services); however, it is not mandatory to implement area rating. Further discussion is provided in subsection 7.4.4 of this report. 4.11 Allocation of Development This step involves relating the costs involved to anticipated development for each period under consideration and using allocations between residential and non-residential development and between one type of development and another, to arrive at a schedule of charges. Watson & Associates Economists Ltd. PAGE 4-13 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 4.12 Asset Management The legislation now requires that a D.C. background study must include an asset management plan (A.M.P.) (subsection 10 (2) c. 2). The A.M.P. must deal with all assets that are proposed to be funded, in whole or in part, by D.C.s. The current regulations provide very extensive and specific requirements for the A.M.P. related to transit services (as noted in the subsequent subsection); however, they are silent with respect to how the A.M.P. is to be provided for all other services. As part of any A.M.P., the examination should be consistent with the municipality's existing assumptions, approaches, and policies on the asset management planning. This examination has been included in Appendix F. 4.13 Transit The D.C.A. provides for the following matters for transit: - The background study requires the following in regard to transit costs (as per subsection 8 (2) of the Regulations): o The calculations used to prepare the estimate for the planned level of service for the transit services, as mentioned in subsection 5.2 (3) of the Act. i. An identification of the portion of the total estimated capital cost relating to the transit services that would benefit, ii. the anticipated development over the 10-year period immediately following the preparation of the background study, or iii. the anticipated development after the 10-year period immediately following the preparation of the background study. o An identification of the anticipated excess capacity that would exist at the end of the 10-year period immediately following the preparation of the background study. o An assessment of ridership forecasts for all modes of transit services proposed to be funded by the development charge over the 10-year period immediately following the preparation of the background study, categorized by development types, and whether the forecast ridership will be from existing or planned development. Watson & Associates Economists Ltd. PAGE 4-14 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx o An assessment of the ridership capacity for all modes of transit services proposed to be funded by the development charge over the 10-year period immediately following the preparation of the background study. - A forward-looking service standard (as per subsection 6.1 (2) of the Regulations): o The service is a discrete service. o No portion of the service that is intended to benefit anticipated development after the 10-year period immediately following the preparation of the background study may be included in the estimate. o No portion of the service that is anticipated to exist as excess capacity at the end of the 10-year period immediately following the preparation of the background study may be included in the estimate. - A detailed asset management strategy and reporting requirements (subsection 6.1 (3) of the Regulations) that includes lifecycle costs, action plans that will enable the assets to be sustainable, summary of how to achieve the proposed level of service, discussion on procurement measures and risk. The Township does not provide, nor intends to provide transit services in the near future; therefore, the above calculations and reporting requirements are not applicable for this study. Watson & Associates Economists Ltd. PAGE 1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Chapter 5 D.C.-Eligible Cost Analysis by Service Watson & Associates Economists Ltd. PAGE 5-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 5. D.C.-Eligible Cost Analysis by Service 5.1 Introduction This chapter outlines the basis for calculating eligible costs for the D.C.s to be applied on a uniform basis. In each case, the required calculation process set out in subsection 5 (1) paragraphs 2 to 7 in the D.C.A. and described in Chapter 4, was followed in determining D.C. eligible costs. The service component is evaluated on two format sheets: - The service standards that provide the average historical 15-year level of service calculation (see Appendix B), which "caps" the D.C. amounts (note that this is not required for wastewater); and - The infrastructure cost calculation, which determines the potential D.C. recoverable cost. The nature of the capital projects and timing identified in the chapter reflects Council's current intention. Over time, however, Township projects and Council priorities change; accordingly, Council's intentions may alter, and different capital projects (and timing) may be necessary to meet the need for services required by new growth. 5.2 Service Levels and 10-Year Capital Costs for Township of Oro-Medonte D.C. Calculations This section evaluates the development-related capital requirements for Services Related to a Highway, Fire Protection Services, Parks and Recreation Services, Provincial Offences Act (By-law Enforcement), and Growth Studies over a 10-year planning period. 5.2.1 Services Related to a Highway 5.2.1.1 Services Related to a Highway - Roads and Related The Township owns and maintains: Watson & Associates Economists Ltd. PAGE 5-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx - 526 km of asphalt roads; - 66 km of surface treated roads; - 20 km of gravel roads; - 0.9 km of concrete roads; and - 50 bridges and culverts (>3 metres). The inventory utilized over the historical 15-year period provides an average level of investment of $129,917 per capita, resulting in a D.C.-eligible recovery amount of $567.74 million over the 10-year forecast period. With respect to future needs, the Township has identified a capital program totalling $13.28 million. These projects include new and upgrades to sidewalks, road upgrades, and a provision for other growth-related road works. Deductions of approximately $3.38 million have been made for the share of the projects that benefit existing development, as well as $1.88 million to reflect the balance in the D.C. reserve fund. Therefore, the total growth-related cost to be included in the D.C. is $8.02 million. The residential/non-residential capital cost allocation for service related to a highway - roads and related is based on the ratio of the anticipated population and employment growth over the 10-year forecast period. This results in 85% being allocated to residential development and 15% to non-residential development. . Watson & Associates Economists Ltd. PAGE 5-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table 5-1 Infrastructure Cost Included in the Development Charges Calculation Services Related to a Highway - Roads and Related Less: Potential D.C. Recoverable Cost Proj. No. Residential Share Non- Residential Share 2024 to 2033 85% 15% Craighurst 1 Sidewalk New and Upgrades 2025-2028 800,000 - 800,000 240,000 560,000 476,000 84,000 Warminster 2 Sidewalk from Preston to Meadow Acres (400m) 2025-2027 170,000 - 170,000 - 170,000 144,500 25,500 3 Sidewalk from Preston to Danny McHugh Park (850m) 2024 350,000 - 350,000 - 350,000 297,500 52,500 4 Warminster Sideroad Improvements - Hwy 12 to Townline (Road, Drainage, Sidewalk) 2023-2026 2,243,000 - 2,243,000 1,682,300 560,700 476,595 84,105 5 Line 13 Upgrades - Warminster Sideroad to Horseshoe 2024 800,000 - 800,000 600,000 200,000 170,000 30,000 Horseshoe Valley 6 Line 3 - Sidewalk from Eagles Rest to Highland Drive 2030 1,000,000 - 1,000,000 - 1,000,000 850,000 150,000 7 Line 3 N HVR to Old Barrie Road 2028-2031 1,900,000 - 1,900,000 665,000 1,235,000 1,049,750 185,250 8 Line 9 Braestone - HVR South to end of road 2026 767,000 - 767,000 191,800 575,200 488,920 86,280 Moonstone 9 Provision for new sidewalks 2027-2030 900,000 - 900,000 - 900,000 765,000 135,000 Shanty Bay 10 Sidewalk Line 3 to Line 2 2028-2031 950,000 - 950,000 - 950,000 807,500 142,500 11 Provision for Other Growth-Related Road Works 2024-2033 3,400,000 - 3,400,000 - 3,400,000 2,890,000 510,000 Reserve Fund Adjustment Reserves - - - 1,877,068 (1,877,068) (1,595,508) (281,560) Total 13,280,000 - - 13,280,000 5,256,168 - 8,023,832 6,820,257 1,203,575 Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2024$) Post Period Benefit Other Deductions Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Watson & Associates Economists Ltd. PAGE 5-4 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 5.2.1.2 Services Related to a Highway - Public Works Facilities, Equipment, and Fleet The Township's Public Works department currently operates out of a combined space of 46,139 sq.ft. of building area. The space utilized over the previous 15-year period provides an average level of service of $1,390 per capita. This level of service provides the Township with a maximum D.C.-eligible amount for recovery over the 10-year forecast period of $6.08 million. The Public Works Department currently maintains an inventory of 44 vehicles and major equipment totalling $11.03 million. This inventory utilized over the historical 15-year period provides for an average level of service of $452 per capita. Over the forecast period, the D.C.-eligible amount for vehicles and equipment is $1.97 million. Based on the above, the maximum D.C.-eligible amount for public works is approximately $8.05 million. Based on the anticipated growth in the Township over the 10-year forecast period, approximately $16.27 million of future capital has been identified. These projects include a new salt/sand storage, garage expansions, various vehicles and equipment (sidewalk machine, excavator, street sweeping equipment, pick-up trucks, etc.). Deductions of approximately $2.58 million have been made for the share of the projects that benefit existing development, as well as $7.15 million for the portion of the capital that benefits development beyond the 10-year forecast. Therefore, the net growth-related D.C. recoverable amount of $6.54 million has been included in the calculations. The residential/non-residential capital cost allocation for service related to a highway - public works is based on the ratio of the anticipated population and employment growth over the 10-year forecast period. This results in 85% being allocated to residential development and 15% to non-residential development. Watson & Associates Economists Ltd. PAGE 5-5 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table 5-2 Infrastructure Cost Included in the Development Charges Calculation Services Related to a Highway - Public Works Facilities, Equipment, and Fleet Less: Potential D.C. Recoverable Cost Proj. No. Residential Share Non- Residential Share 2024 to 2033 85% 15% 1 Sand/Salt Storage 2025-2027 1,750,000 - 1,750,000 235,200 1,514,800 1,287,580 227,220 2 Additional Roads Garage 2026-2030 6,500,000 2,437,500 4,062,500 1,625,000 2,437,500 2,071,875 365,625 3 North Yard Roads Garage Expansion 2028-2031 3,500,000 3,500,000 - - - - - 4 Roadway Snow Plow and Sander 2025-2031 1,380,000 690,000 690,000 - 690,000 586,500 103,500 5 Mechanic Vehicle 2025 135,000 - 135,000 - 135,000 114,750 20,250 6 Slip-in Water Tanks 2026 132,000 - 132,000 66,000 66,000 56,100 9,900 7 Shoulder Reclaimer 2026 32,000 - 32,000 22,400 9,600 8,160 1,440 8 Sidewalk Machine 2025 230,000 - 230,000 - 230,000 195,500 34,500 9 Spray Patcher 2026 170,000 - 170,000 119,000 51,000 43,350 7,650 10 Excavator 15 Tonne 2028 410,000 - 410,000 287,000 123,000 104,550 18,450 11 Mechanic Equipment and Lifts 2024 152,000 - 152,000 38,000 114,000 96,900 17,100 12 Street Sweeping Equipment (StreetSweeper, Vac attachments, and upgrade mech. to vac high capacity) 2025-2033 1,035,000 517,500 517,500 - 517,500 439,875 77,625 13 Brusher Arm - Tractor 2026 200,000 - 200,000 140,000 60,000 51,000 9,000 14 Float 2025 20,000 - 20,000 14,000 6,000 5,100 900 15 Pick up Trucks (5) 2025-2031 375,000 - 375,000 - 375,000 318,750 56,250 16 Skid Steer (Second Unit) track Unit Plus forestry attachments 2025 150,000 - 150,000 37,500 112,500 95,625 16,875 17 Small Equipment (Chainsaws, pumps, blowers) 2024-2028 100,000 - 100,000 - 100,000 85,000 15,000 Total 16,271,000 7,145,000 - 9,126,000 2,584,100 - 6,541,900 5,560,615 981,285 Post Period Benefit Other Deductions Net Capital Cost Gross Capital Cost Estimate (2024$) Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Increased Service Needs Attributable to Anticipated Development Timing (year) Watson & Associates Economists Ltd. PAGE 5-6 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 5.2.2 Fire Protection Services The Township of Oro-Medonte's Fire Department currently operates out of a combined 30,488 sq.ft. of facility space. The facility space provided over the 2009 to 2023 period provides for an average level of service of 1.11 sq.ft. per capita or $700 per capita. This level of service provides the Township with a maximum D.C.-eligible amount for recovery over the forecast period of $3.06 million. The fire department has a current inventory of 29 vehicles. Based on the number of vehicles utilized in the provision of fire services over the previous 15 years, the total D.C.-eligible amount calculated for fire vehicles over the forecast period is $3.49 million, (based on a standard of $799 per capita). In addition to vehicles, the Township provides 559 items of equipment and gear for the use in fire services. The inventory utilized over the previous 15-year period results in a calculated average level of service of $123 per capita, providing for a D.C.-eligible amount over the forecast period of $539,477 for small equipment and gear. Based on the above, the maximum D.C.-eligible amount for fire protection services is approximately $7.09 million. Based on the projected growth over the 10-year forecast period, the Township has identified future capital needs totalling approximately $2.41 million. The projects include the need for an expansion to the Horseshoe Valley Station #3, Dry Hydrant installation, a new diesel exhaust extraction unit, a rapid response vehicle, water boat and trailer, and a provision for additional firefighter equipment. In addition, the Township's reserve fund deficit of $2.27 million has been included in the calculation for recovery. This provides a total gross cost of $4.68 million. A deduction of $30,000 has been made for the share of the projects that benefit existing development. Therefore, the net growth- related capital cost of $4.65 million is being included in the D.C. calculations. These costs are shared between residential and non-residential development based on the population to employment ratio over the forecast period, resulting in 85% being allocated to residential development and 15% being allocated to non-residential development. Watson & Associates Economists Ltd. PAGE 5-7 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table 5-3 Infrastructure Cost Included in the Development Charges Calculation Fire Protection Services Less: Potential D.C. Recoverable Cost Proj. No. Residential Share Non- Residential Share 2024 to 2033 85% 15% Facilities 1 Horseshoe Valley Station 3 expansion 2026-2030 1,920,000 - 1,920,000 - 1,920,000 1,632,000 288,000 2 Dry Hydrant Installation 2025 10,000 - 10,000 5,000 5,000 4,250 750 3 Diesel Exhaust Extraction - Station 6 2024 50,000 - 50,000 25,000 25,000 21,250 3,750 Vehicles & Equipment 4 Rapid Response vehicle (mini pumper) 2024 300,000 - 300,000 - 300,000 255,000 45,000 5 Waterboat and Trailer 2024 80,000 - 80,000 - 80,000 68,000 12,000 6 Provision for additional Firefighter Equipment 2026 52,000 - 52,000 - 52,000 44,200 7,800 Reserve Fund Adjustment Reserves 2,266,217 - 2,266,217 - 2,266,217 1,926,284 339,932 Total 4,678,217 - - 4,678,217 30,000 - 4,648,217 3,950,984 697,232 Post Period Benefit Other Deductions Net Capital Cost Gross Capital Cost Estimate (2024$) Increased Service Needs Attributable to Anticipated Development Timing (year) Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Watson & Associates Economists Ltd. PAGE 5-8 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 5.2.3 Parks and Recreation Services The Township currently provides a variety of parks and recreation-related assets to service the community. A summary of the Township's inventory is provided below: - 335.30 acres of parkland (consisting of various sized community parks, neighbourhood parks, regional parks, green space, and undeveloped parkland); - 34,050 linear metres of trails; - 56 amenities that include items such as, baseball diamonds, soccer pitches, playgrounds, multi-purpose sports courts, tennis courts, pavilions, etc.; - 6 parks and recreation vehicles and equipment (light duty vehicles, tractor, ice resurfacer, etc.); and - Approximately 56,000 sq.ft. of recreation facility space, which includes community halls. In total, the Township's parks and recreation service has provided a 15-year (2009 to 2023) historical level of service that equates to an investment of $3,903 per capita. This level of investment provides the Township with a D.C.-eligible amount of $17.05 million towards future parks and recreation capital. Based on the projected growth over the 10-year forecast period, the Township has identified $27.05 million in future growth capital costs for parks and recreation. These projects include parkland development, provision for trails, pickleball courts, tractor attachments, pick-up truck, the Central Community Centre, the Moonstone Community Centre, and existing growth-related debt. With respect to deductions, the following adjustments have been made: - Benefit to existing development: $3.87 million. - Post period benefit: $8.80 million. - Reserve fund balance: $3.38 million. Therefore, the net growth-related capital cost of $11.01 million is being included in the D.C. calculations. As the predominant users of parks and recreation tend to be residents of the Township, the forecast growth-related costs have been allocated 95% to residential and 5% to non-residential. Watson & Associates Economists Ltd. PAGE 5-9 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table 5-4 Infrastructure Cost Included in the Development Charges Calculation Parks and Recreation Services Proj. No. Residential Share Non- Residential Share 2024 to 2033 95% 5% Parkland Development 1 Sports Field Development - Guthrie 2027-2029 2,100,000 - 2,100,000 525,000 1,575,000 1,496,250 78,750 2 Provision for Trails 2026-2031 1,200,000 - 1,200,000 300,000 900,000 855,000 45,000 3 Craighurst Park Development 2025-2028 1,000,000 - 1,000,000 - 1,000,000 950,000 50,000 4 Pickelball Courts 2025-2026 1,900,000 - 1,900,000 - 1,900,000 1,805,000 95,000 5 Horseshoe Valley Park Development 2029-2030 1,500,000 - 1,500,000 - 1,500,000 1,425,000 75,000 6 Danny McHugh Park - Phase 2 2025-2027 715,000 - 715,000 236,000 479,000 455,050 23,950 7 Ramey Community Park Future Development 2026 750,000 - 750,000 - 750,000 712,500 37,500 8 Eagles Rest Subdivision 2025 375,000 - 375,000 - 375,000 356,250 18,750 - - Park Vehicles - - 9 Tractor Attachments 2025 71,000 - 71,000 - 71,000 67,450 3,550 10 Pick up Truck 2026 75,000 - 75,000 - 75,000 71,250 3,750 - Recreation - 11 Central Community Centre Phase 1 2024-2027 8,500,000 - 8,500,000 2,805,000 5,695,000 5,410,250 284,750 12 Central Community Centre Phase 2 2028-2031 6,000,000 6,000,000 - - - - - 13 Moonstone Community Centre 2026-2028 2,800,000 2,800,000 - - - - - 14 Arena Growth-Related Debenture - Principal 2024 61,976 - 61,976 - 61,976 58,877 3,099 15 Arena Growth-Related Debenture - Discounted Interest 2024 1,276 - 1,276 - 1,276 1,213 64 Reserve Fund Adjustment Reserves - - - 3,376,309 (3,376,309) (3,207,493) (168,815) Total 27,049,252 8,800,000 - 18,249,252 7,242,309 - 11,006,943 10,456,596 550,347 Gross Capital Cost Estimate (2024$) Increased Service Needs Attributable to Anticipated Development Timing (year) Post Period Benefit Other Deductions Net Capital Cost Less: Potential D.C. Recoverable Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Watson & Associates Economists Ltd. PAGE 5-10 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 5.2.4 Provincial Offences Act (By-law Enforcement) The Township's Provincial Offences Act (By-law Enforcement) department operates out of 650 sq.ft. of building area. The facilities utilized over the previous 15-year period provides an average level of service of $7 per capita. This level of service provides the Township with a maximum D.C.-eligible amount for recovery over the 10-year forecast period of $29,366. The By-law Enforcement department currently maintains an inventory of 5 vehicles totalling $325,000. The inventory over the previous 15-year period provides for an average level of service of $10 per capita. Over the forecast period, the D.C.-eligible amount for vehicles and equipment is $45,535. Based on the above, the maximum D.C.-eligible amount for public works is approximately $74,902. Based on the projected growth over the 10-year forecast period, the Township has identified future capital needs totalling approximately $688,500. The projects include a new municipal by-law building and a new electric vehicle. A deduction of approximately $615,100 has been made for the share of the projects that benefit the community beyond the 10-year forecast. Therefore, the net growth-related capital cost of $73,400 is being included in the D.C. calculations. The residential/non-residential capital cost allocation for provincial offences act including by-law is based on the ratio of the anticipated population and employment growth over the 10-year forecast period. This results in 85% being allocated to residential development and 15% to non-residential development. Watson & Associates Economists Ltd. PAGE 5-11 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table 5-5 Infrastructure Cost Included in the Development Charges Calculation Provincial Offences Act (By-law Enforcement) Proj. No. Residential Share Non- Residential Share 2024 to 2033 85% 15% 1 New municipal by-law building 2024 612,000 538,600 73,400 - 73,400 62,390 11,010 2 New Vehicle - Electric 2028 76,500 76,500 - - - - - Total 688,500 615,100 - 73,400 - - 73,400 62,390 11,010 Gross Capital Cost Estimate (2024$) Increased Service Needs Attributable to Anticipated Development Timing (year) Post Period Benefit Other Deductions Net Capital Cost Less: Potential D.C. Recoverable Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Watson & Associates Economists Ltd. PAGE 5-12 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 5.2.5 Growth Studies Based on the anticipated growth forecast, a number of growth studies have been identified to support various initiatives for the Township. The total gross capital cost of the studies is approximately $2 million. These studies include various Master Plans, Planning Studies, D.C. Background Studies, etc. For broader planning related studies, a deduction of 10% ($59,000) has been applied to recognize the extent to which the studies relate to non-D.C.-eligible service. Deductions of $464,600 were made to recognize the benefit to the existing community, as well as $251,184 to reflect the reserve fund balance. Therefore, the net amount of $1.24 million has been included in the D.C. calculations. The residential/non-residential allocation for growth studies is based on the ratio of anticipated population and employment growth over the buildout forecast period. This results in an 85% allocation to residential development and 15% allocation to non- residential development. Watson & Associates Economists Ltd. PAGE 5-13 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table 5-6 Infrastructure Cost Included in the Development Charges Calculation Growth Studies Residential Share Non- Residential Share 2024 to 2033 85% 15% 1 Corporate Strategic Plan 2024 50,000 - 5,000 45,000 22,500 22,500 19,125 3,375 2 Ward Boundary Review 2026 65,000 - 6,500 58,500 29,300 29,200 24,820 4,380 3 Development Charges Study 2024 70,000 - 70,000 - 70,000 59,500 10,500 4 Development Charges Study 2033 70,000 - 70,000 - 70,000 59,500 10,500 5 Craighurst Community Park - Master Planning 2025 65,000 - 65,000 - 65,000 55,250 9,750 6 Shanty Bay Park Master Plan 2026 65,000 - 65,000 16,300 48,700 41,395 7,305 7 Waterfront Parkland Strategy 2025 58,000 - 58,000 14,500 43,500 36,975 6,525 8 Roads Need Study 2024 50,000 - 50,000 37,500 12,500 10,625 1,875 9 Transportation Master Plan 2028 150,000 - 150,000 37,500 112,500 95,625 16,875 10 Core Service Review 2024 150,000 - 15,000 135,000 67,500 67,500 57,375 10,125 11 Development Plan for Horseshoe 2027 40,000 - 40,000 - 40,000 34,000 6,000 12 Localized Drainage Study 2024 75,000 - 75,000 37,500 37,500 31,875 5,625 13 Township Strategic Plan 2027 100,000 - 10,000 90,000 45,000 45,000 38,250 6,750 14 Accomodation Plan 2026 75,000 - 7,500 67,500 33,800 33,700 28,645 5,055 15 Other Parkland Studies 2028 40,000 - 40,000 10,000 30,000 25,500 4,500 16 Engineering Standards Update 2027 50,000 - 50,000 25,000 25,000 21,250 3,750 17 Fire Master Plan Upgrade 2029 150,000 - 150,000 37,500 112,500 95,625 16,875 18 Zoning Update 2026 75,000 - 7,500 67,500 33,800 33,700 28,645 5,055 19 Official Plan Review 2029 75,000 - 7,500 67,500 16,900 50,600 43,010 7,590 20 Craighurst Intensification Study 2027 40,000 - 40,000 - 40,000 34,000 6,000 21 Provision for Other Growth-Related Studies 2024-2033 500,000 - 500,000 - 500,000 425,000 75,000 Reserve Fund Adjustment Reserves - - 251,184 (251,184) (213,506) (37,678) Total 2,013,000 - 59,000 1,954,000 715,784 - 1,238,216 1,052,484 185,732 Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Less: Potential D.C. Recoverable Cost Other Deductions (to recognize benefit to non-D.C. services) Proj. No. Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2024$) Post Period Benefit Watson & Associates Economists Ltd. PAGE 5-14 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 5.3 Urban Area 10-Year D.C. Calculations This section evaluates the development-related capital requirements for water services over an area-specific urban 10-year planning period. 5.3.1 Water Services The water capital program identified for the Township totals $24.57 million. The projects include the need for a drinking water storage in Horseshoe Valley, a provision for a new water towers, a provision for additional water infrastructure, and debt related to an elevated storage tank. With respect to deductions, the following adjustments have been made: - Benefit to existing development: $9.49 million. - Post period benefit: $1.29 million. - Reserve fund balance: $393,953. Therefore, the net growth-related capital cost of $13.38 million is being included in the D.C. calculations. These costs are shared between residential and non-residential development based on the population to employment ratio over the service area's urban 10-year forecast period, resulting in 89% being residential development and 11% being allocated to non- residential development. Watson & Associates Economists Ltd. PAGE 5-15 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table 5-7 Infrastructure Cost Included in the Development Charges Calculation Water Services Residential Share Non- Residential Share 2024 to Urban 10-Year 89% 11% 1 Elevated Storage Debenture - Principal 2024-2038 3,962,336 - 3,962,336 1,188,700 2,773,636 2,468,536 305,100 2 Elevated Storage Debenture - Discounted Interest 2024-2038 575,734 - 575,734 172,700 403,034 358,701 44,334 3 Horseshoe Highlands- Drinking Water Storage 2025 1,350,000 1,296,000 54,000 - 54,000 48,060 5,940 4 Provision for New Water Towers 2024-2033 8,750,000 - 8,750,000 8,137,500 612,500 545,125 67,375 5 Provision for Other Growth-Related Water Infrastructure 2024-2033 9,930,000 - 9,930,000 - 9,930,000 8,837,700 1,092,300 - - - - - - 6 Reserve Fund Adjustment Reserve - - - 393,953 (393,953) (350,618) (43,335) Total 24,568,071 1,296,000 - 23,272,071 9,892,853 - 13,379,217 11,907,503 1,471,714 Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Potential D.C. Recoverable Cost Gross Capital Cost Estimate (2024$) Post Period Benefit Other Deductions Net Capital Cost Less: Proj. No. Increased Service Needs Attributable to Anticipated Development Timing (year) Watson & Associates Economists Ltd. H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Chapter 6 D.C. Calculation Watson & Associates Economists Ltd. PAGE 6-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 6. D.C. Calculation Table 6-1 calculates the proposed urban area D.C.s to be imposed for water services based upon the 10-year urban forecast period. Table 6-2 calculates the proposed uniform D.C.s to be imposed on anticipated development in the Township for Township- wide services over the 10-year forecast period. The calculation for residential development is generated on a per capita basis and is based upon five forms of housing types (singles and semi-detached, multiples, apartments 2+ bedrooms, apartments bachelor and 1 bedroom, and special care dwelling units). The non-residential D.C. has been calculated on a per sq.ft. of G.F.A. basis for all types of non-residential development (industrial, commercial, and institutional). The D.C.-eligible costs for each service component were developed in Chapter 5 for all Township services, based on their proposed capital programs. For the residential calculations, the total cost is divided by the "gross" (new resident) population to determine the per capita amount. The eligible-D.C. cost calculations set out in Chapter 5 are based on the net anticipated population increase (the forecast new unit population less the anticipated decline in existing units). The cost per capita is then multiplied by the average occupancy of the new units (Appendix A, Schedule 7) to calculate the charge in Tables 6-1 to 6-2. With respect to non-residential development, the total costs in the uniform charge allocated to non-residential development (based on need for service) have been divided by the anticipated development over the planning period to calculate a cost per sq.ft. of G.F.A. Table 6-3 summarizes the total D.C. that is applicable for Township-wide and urban area services and Table 6-4 summarizes the gross capital expenditures and sources of revenue for works to be undertaken during the life of the by-law. Watson & Associates Economists Ltd. PAGE 6-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table 6-1 Township of Oro-Medonte Development Charge Calculation Municipal-Serviced Urban Areas Urban 10-Year 2024$ D.C.-Eligible Cost 2024$ D.C.-Eligible Cost SERVICE/CLASS Residential Non-Residential S.D.U. per sq.ft. $ $ $ $ 1. Water Services 1.1 Treatment, storage and distribution systems 11,907,503 1,471,714 10,496 5.84 11,907,503 1,471,714 10,496 5.84 TOTAL 11,907,503 $1,471,714 $10,496 5.84 D.C.-Eligible Capital Cost $11,907,503 $1,471,714 10-Year Gross Population/GFA Growth (sq.ft.) 3,400 252,000 Cost Per Capita/Non-Residential GFA (sq.ft.) $3,502.21 $5.84 By Residential Unit Type P.P.U. Single and Semi-Detached Dwelling 2.997 $10,496 Multiples 2.401 $8,409 Apartments - 2 Bedrooms + 1.826 $6,395 Apartments - Bachelor and 1 Bedroom 1.190 $4,168 Special Care/Special Dwelling Units 1.100 $3,852 Watson & Associates Economists Ltd. PAGE 6-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table 6-2 Township of Oro-Medonte Development Charge Calculation Township-wide Services 10-Year 2024$ D.C.-Eligible Cost 2024$ D.C.-Eligible Cost SERVICE/CLASS Residential Non-Residential S.D.U. per sq.ft. $ $ $ $ 2. Services Related to a Highway 2.1 Roads and Related 6,820,257 1,203,575 4,585 1.60 2.2 Public Works 5,560,615 981,285 3,738 1.30 12,380,872 2,184,860 8,323 2.90 3. Fire Protection Services 3.1 Fire facilities, vehicles and equipment 3,950,984 697,232 2,656 0.93 3,950,984 697,232 2,656 0.93 4. Parks and Recreation Services 4.1 Park development, amenities, trails, recreation facilities, vehicles and equipment 10,456,596 550,347 7,030 0.73 10,456,596 550,347 7,030 0.73 5. Provincial Offences Act (By-Law Enforcement) 5.1 P.O.A. Facilities and vehicles 62,390 11,010 42 0.01 62,390 11,010 42 0.01 6. Growth Studies 6.1 Growth Studies 1,052,484 185,732 708 0.25 1,052,484 185,732 708 0.25 TOTAL 27,903,326 $3,629,182 $18,759 $4.82 D.C.-Eligible Capital Cost $27,903,326 $3,629,182 10-Year Gross Population/GFA Growth (sq.ft.) 4,458 752,300 Cost Per Capita/Non-Residential GFA (sq.ft.) $6,259.16 $4.82 By Residential Unit Type P.P.U. Single and Semi-Detached Dwelling 2.997 $18,759 Multiples 2.401 $15,028 Apartments - 2 Bedrooms + 1.826 $11,429 Apartments - Bachelor and 1 Bedroom 1.190 $7,448 Special Care/Special Dwelling Units 1.100 $6,885 Table 6-3 Township of Oro-Medonte Development Charge Calculation Total All Services 2024$ D.C.-Eligible Cost 2024$ D.C.-Eligible Cost Residential Non-Residential S.D.U. per sq.ft. $ $ $ $ Urban-wide Services/Classes 10-Year 11,907,503 1,471,714 10,496 5.84 Township-wide Services/Classes 10-Year 27,903,326 3,629,182 18,759 4.82 TOTAL 39,810,830 5,100,896 29,255 10.66 Watson & Associates Economists Ltd. PAGE 6-4 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table 6-6 Township of Oro-Medonte Gross Expenditure and Sources of Revenue Summary for Costs to be Incurred over the Life of the By-law Sources of Financing Tax Base or Other Non-D.C. Source D.C. Reserve Fund Other Benefit to Other Funding Residential Non-Residential 1. Water Services 1.1 Treatment, storage and distribution systems 23,271,479 0 9,109,929 0 1,296,000 11,450,340 1,415,211 2. Services Related to a Highway 2.1 Roads and Related 13,280,000 0 3,379,100 0 0 8,415,765 1,485,135 2.2 Public Works 16,271,000 0 2,584,100 0 7,145,000 5,560,615 981,285 3. Fire Protection Services 3.1 Fire facilities, vehicles and equipment 2,412,000 0 30,000 0 0 2,024,700 357,300 4. Parks and Recreation Services 4.1 Park development, amenities, trails, recreation facilities, vehicles and equipment 27,049,252 0 3,866,000 0 8,800,000 13,664,090 719,163 5. Provincial Offences Act (By-Law Enforcement) 5.1 P.O.A. Facilities and vehicles 688,500 0 0 0 615,100 62,390 11,010 6. Growth Studies 6.1 Growth Studies 2,013,000 59,000 464,600 0 0 1,265,990 223,410 Total Expenditures & Revenues $84,985,231 $59,000 $19,433,729 $0 $17,856,100 $42,443,889 $5,192,513 Post D.C. Period Benefit Total Gross Cost Service/Class Watson & Associates Economists Ltd. PAGE 6-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Chapter 7 D.C. Policy Recommendations and D.C. By-law Rules Watson & Associates Economists Ltd. PAGE 7-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 7. D.C. Policy Recommendations and D.C. By-law Rules 7.1 Introduction Subsection 5 (1) 9 states that rules must be developed: "to determine if a development charge is payable in any particular case and to determine the amount of the charge, subject to the limitations set out in subsection (6)." Paragraph 10 of the section goes on to state that the rules may provide for exemptions, phasing in and/or indexing of D.C.s. Subsection 5 (6) establishes the following restrictions on the rules: - the total of all D.C.s that would be imposed on anticipated development must not exceed the capital costs determined under subsection 5 (1) 2-7 for all services involved; - if the rules expressly identify a type of development, they must not provide for it to pay D.C.s that exceed the capital costs that arise from the increase in the need for service for that type of development; however, this requirement does not relate to any particular development; and - if the rules provide for a type of development to have a lower D.C. than is allowed, the rules for determining D.C.s may not provide for any resulting shortfall to be made up via other development. With respect to "the rules," section 6 states that a D.C. by-law must expressly address the matters referred to above re subsection 5 (1) paragraphs 9 and 10, as well as how the rules apply to the redevelopment of land. The rules provided are based on the Township's existing policies; with some modifications and consideration for the changes to the D.C.A. resulting from Bills 108, 197, 213, 23, and 185. Watson & Associates Economists Ltd. PAGE 7-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 7.2 D.C. By-law Structure It is recommended that: - the Township uses a uniform Township-wide D.C. calculation for services excluding water services; - D.C.s for water services be imposed on the urban service area of the Township on an area-specific basis as provided in Chapters 5 and 6; and - one D.C. by-law be used for all services referenced above. 7.3 D.C. By-law Rules The following subsections set out the recommended rules governing the calculation, payment and collection of D.C.s in accordance with section 6 of the D.C.A. It is recommended that the following sections provide the basis for the D.C.s.: 7.3.1 Payment in any Particular Case In accordance with the D.C.A., subsection 2 (2), a D.C. be calculated, payable, and collected where the development requires one or more of the following: "(a) the passing of a zoning by-law or of an amendment to a zoning by- law under section 34 of the Planning Act; (b) the approval of a minor variance under section 45 of the Planning Act; (c) a conveyance of land to which a by-law passed under subsection 50 (7) of the Planning Act applies; (d) the approval of a plan of subdivision under section 51 of the Planning Act; (e) a consent under section 53 of the Planning Act; (f) the approval of a description under section 9 of the Condominium Act, 1998; or (g) the issuing of a permit under the Building Code Act, 1992 in relation to a building or structure." Watson & Associates Economists Ltd. PAGE 7-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 7.3.2 Determination of the Amount of the Charge The following conventions be adopted: 1) Costs allocated to residential uses will be assigned to different types of residential units based on the average occupancy for each housing type constructed during the previous decade. Costs allocated to non-residential uses will be assigned based on the amount of square feet of G.F.A. constructed for eligible uses (i.e. industrial, commercial, and institutional). 2) Costs allocated to residential and non-residential uses are based upon a number of conventions, as may be suited to each municipal circumstance, e.g. - for parks and recreation, a 5% non-residential attribution has been made to recognize use by the non-residential sector ; - for services related to a highway, fire protection services, Provincial Offences Act (By-law Enforcement), and growth studies an 85% residential/15% non-residential attribution has been made based on a population vs. employment growth ratio over the 10-year forecast period; and - for water services an 89% residential/11% non-residential allocation has been made based on population vs. employment growth over the urban 10-year forecast period. 7.3.3 Application to Redevelopment of Land (Demolition and Conversion) If a development involves the demolition and replacement of a building or structure on the same site (within 60 months prior to the date of payment of development charges in regard to such redevelopment was, or is to be demolished, in whole or in part), or the conversion from one principal use to another, the developer shall be allowed a credit equivalent to: 1) the number of dwelling units demolished/converted multiplied by the applicable residential D.C. in place at the time the D.C. is payable; and/or Watson & Associates Economists Ltd. PAGE 7-4 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 2) the G.F.A. of the building demolished/converted multiplied by the current non- residential D.C. in place at the time the D.C. is payable; provided that such amounts shall not exceed, in total, the amount of the development charges otherwise payable with respect to the redevelopment. Non-residential developments may submit a request to Council for an extension to the 60 month period described above, up to an additional 12 months. 7.3.4 Exemptions (full or partial) a) Statutory exemptions: - industrial building additions of up to and including 50% of the existing G.F.A. (defined in O. Reg. 82/98, section 1) of the building; for industrial building additions that exceed 50% of the existing G.F.A., only the portion of the addition in excess of 50% is subject to D.C.s (subsection 4 (3) of the D.C.A.); - buildings or structures owned by and used for the purposes of any municipality, local board, or Board of Education (section 3); - may add up to 2 apartments in an existing or new detached, semi- detached, or rowhouse (including in an ancillary structure); - add one additional unit or 1% of existing units in an existing rental residential building; - a university in Ontario that receives direct, regular, and ongoing operating funding from the Government of Ontario; - affordable units; - attainable units (to be in force at a later date); - affordable inclusionary zoning units; - non-profit housing; and - discount for rental housing units based on bedroom size (i.e., three or more bedrooms - 25% reduction, two bedrooms - 20% reduction, and all others - 15% reduction). b) Non-statutory exemptions (for Council's consideration): - Places of worship; Watson & Associates Economists Ltd. PAGE 7-5 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx - Public hospitals; and - Farm buildings. 7.3.5 Timing of Collection The D.C.s for all services and classes are payable upon issuance of a building permit for each dwelling unit, building, or structure, subject to early or late payment agreements entered into by the Township and an owner under s. 27 of the D.C.A. Rental housing and institutional developments will pay D.C.s in 6 equal annual payments commencing at occupancy subject to early or late payment agreements entered into by the Township and an owner under s. 27 of the D.C.A. Moreover, the D.C. amount for all developments occurring within 18 months of a Site Plan or Zoning By-law Amendment planning approval (for applications submitted after June 6, 2024), shall be determined based on the D.C. in effect on the day the applicable Site Plan or Zoning By-law Amendment application was submitted (as a complete application). Instalment payments and payments determined at the time of Site Plan or Zoning By- law Amendment application are subject to annual interest charges. The maximum interest rate the Township can impose is the average prime rate plus 1%. 7.3.6 The Applicable Areas The charges developed herein provide for varying charges within the Township, as follows: - All Townshipwide services - the full residential and non-residential charge will be imposed on all lands within the Township; and - Water Services - the full residential and non-residential charge will be imposed on the municipal urban serviced areas of the Township. 7.3.7 Indexing Indexing of the D.C.s shall be implemented on a mandatory basis annually commencing on January 1, 2025, and each January 1st thereafter, in accordance with the Statistics Watson & Associates Economists Ltd. PAGE 7-6 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Canada Quarterly, Non-Residential Building Construction Price Index (Table 18-10- 0276-02)[12] for the most recent year-over-year period. 7.4 Other D.C. By-law Provisions It is recommended that: 7.4.1 Categories of Services for Reserve Fund and Credit Purposes The Township's D.C. collections are currently in five (5) separate reserve funds: Services Related to a Highway, Fire Protection Services, Parks and Recreation Services, Growth Studies, and Water Services. It is recommended that the Township establish a reserve fund for Provincial Offences Act (By-law Enforcement). Appendix D outlines the reserve fund policies that the Township is required to follow as per the D.C.A. 7.4.2 By-law In-force Date A by-law under the D.C.A. comes into force on the day after which the by-law is passed by Council. 7.4.3 Minimum Interest Rate Paid on Refunds and Charged for Inter- Reserve Fund Borrowing The minimum interest rate is what the Bank of Canada rate is on the day the by-law comes into force updated on the first business day of every January, April, July and October (as per section 11 of O. Reg. 82/98). [12] O. Reg. 82/98 referenced "The Statistics Canada Quarterly, Construction Price Statistics, catalogue number 62-007" as the index source. Since implementation, Statistics Canada has modified this index twice and the above-noted index is the most current. The draft by-law provided herein refers to O. Reg. 82/98 to ensure traceability should this index continue to be modified over time. Watson & Associates Economists Ltd. PAGE 7-7 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 7.4.4 Area Rating The D.C.A. required that Council must consider the use of area specific charges: 1. Subsection 2 (9) of the D.C.A. now requires a municipality to implement area- specific D.C.s for either specific services which are prescribed and/or for specific municipalities which are to be regulated (note that at this time, no municipalities or services are prescribed by the regulations). 2. Subsection 10 (2) c.1 of the D.C.A. requires that "the development charges background study shall include consideration of the use of more than one development charge by-law to reflect different needs for services in different areas." In regard to the first item, there are no services or specific municipalities identified in the regulations which must be area rated. The second item requires Council to consider the use of area rating. Currently, the Township's by-law does provide for area-rating with respect to water. All other Township services are recovered based on a uniform, Township-wide basis. There have been several reasons why area-rating has not been imposed on these services, including: 1. All Township services, with the exception of water, require that the average 15- year service standard be calculated. This average service standard multiplied by growth in the Township, establishes an upper ceiling on the amount of funds that can be collected from all developing landowners. Section 4 (4) of O. Reg. 82/98 provides that "if a development charge by-law applies to a part of the municipality, the level of service and average level of service cannot exceed that which would be determined if the by-law applied to the whole municipality." Put in layperson terms, the average service standard multiplied by the growth within the specific area would establish an area-specific ceiling which would significantly reduce the total revenue recoverable for the Township hence potentially resulting in D.C. revenue shortfalls and impacts on property taxes. 2. Expanding on item 1, attempting to impose an area charge potentially causes equity issues in transitioning from a Township-wide approach to an area-specific approach. For example, if all services were now built (and funded) within Area A Watson & Associates Economists Ltd. PAGE 7-8 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx (which is 75% built out) and this was funded with some revenues from Areas B and C, moving to an area-rating approach would see Area A contribute no funds to the costs of services in Areas B and C. The D.C.s would be lower in Area A (as all services are now funded) and higher in Areas B and C. As well, funding shortfalls may then potentially encourage the municipality to provide less services to Areas B and C due to reduced revenue. 3. Many services provided (roads, parks and recreation facilities, etc.) are not restricted to one specific area and are often used by all residents. For example, arenas located in different parts of the Township will be used by residents from all areas depending on the programing of the facility (i.e., a public skate is available each night, but at a different arena; hence usage of any one facility at any given time is based on programming availability). For the reasons noted above, it is recommended that Council continue the D.C. approach to calculate the charges on an urban area basis for water while all other services be charged on a uniform Township-wide basis. 7.5 Other Recommendations It is recommended that Council: "Whenever appropriate, request that grants, subsidies and other contributions be clearly designated by the donor as being to the benefit of existing development or new development, as applicable;" "Adopt the assumptions contained herein as an 'anticipation' with respect to capital grants, subsidies and other contributions;" "Continue the D.C. approach to calculate the charges on a uniform Township-wide basis for all services except water;" "Approve the D.C. approach to calculate the charges on an urban-area basis for water services;" "Approve the capital project listing set out in Chapter 5 of the D.C. Background Study dated August 23, 2024, subject to further annual review during the capital budget process;" Watson & Associates Economists Ltd. PAGE 7-9 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx "Approve the D.C. Background Study dated August 23, 2024;" "Determine that no further public meeting is required;" and "Approve the D.C. By-law as set out in Appendix G. Watson & Associates Economists Ltd. H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Chapter 8 By-law Implementation Watson & Associates Economists Ltd. PAGE 8-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 8. By-law Implementation 8.1 Public Consultation Process 8.1.1 Introduction This chapter addresses the mandatory, formal public consultation process (section 8.1.2), as well as the optional, informal consultation process (section 8.1.3). The latter is designed to seek the co-operation and participation of those involved, in order to produce the most suitable policy. Section 8.2 addresses the anticipated impact of the D.C. on development from a generic viewpoint. 8.1.2 Public Meeting of Council Section 12 of the D.C.A. indicates that before passing a D.C. by-law, Council must hold at least one public meeting, giving at least 20 clear days' notice thereof, in accordance with the Regulation. Council must also ensure that the proposed by-law and background report are made available to the public at least two weeks prior to the (first) meeting. Any person who attends such a meeting may make representations related to the proposed by-law. If a proposed by-law is changed following such a meeting, Council must determine whether a further meeting (under this section) is necessary (i.e., if the proposed by-law which is proposed for adoption has been changed in any respect, Council should formally consider whether an additional public meeting is required, incorporating this determination as part of the final by-law or associated resolution. It is noted that Council's decision, once made, is final and not subject to review by a Court or the Ontario Land Tribunal (OLT) (formerly the Local Planning Appeal Tribunal (LPAT)). 8.1.3 Other Consultation Activity There are three broad groupings of the public who are generally the most concerned with municipal D.C. policy: 1. The first grouping is the residential development community, consisting of land developers and builders, who are typically responsible for generating the majority Watson & Associates Economists Ltd. PAGE 8-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx of the D.C. revenues. Others, such as realtors, are directly impacted by D.C. policy. They are, therefore, potentially interested in all aspects of the charge, particularly the quantum by unit type, projects to be funded by the D.C. and the timing thereof, and municipal policy with respect to development agreements, D.C. credits and front-ending requirements. 2. The second public grouping embraces the public at large and includes taxpayer coalition groups and others interested in public policy. 3. The third grouping is the industrial/commercial/institutional development sector, consisting of land developers and major owners or organizations with significant construction plans, such as hotels, entertainment complexes, shopping centres, offices, industrial buildings, and institutions. Also involved are organizations such as Industry Associations, the Chamber of Commerce, the Board of Trade, and the Economic Development Agencies, who are all potentially interested in municipal D.C. policy. Their primary concern is frequently with the quantum of the charge, G.F.A. exclusions such as basements, mechanical or indoor parking areas, or exemptions and phase-in or capping provisions in order to moderate the impact. 8.2 Anticipated Impact of the Charge on Development The establishment of sound D.C. policy often requires the achievement of an acceptable balance between two competing realities. The first is that high non- residential D.C.s can, to some degree, represent a barrier to increased economic activity and sustained industrial/commercial growth, particularly for capital intensive uses. Also, in many cases, increased residential D.C.s can ultimately be expected to be recovered via housing prices and can impact project feasibility in some cases (e.g., rental apartments). On the other hand, D.C.s or other municipal capital funding sources need to be obtained in order to help ensure that the necessary infrastructure and amenities are installed. The timely installation of such works is a key initiative in providing adequate service levels and in facilitating strong economic growth, investment, and wealth generation. Watson & Associates Economists Ltd. PAGE 8-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 8.3 Implementation Requirements 8.3.1 Introduction Once the Township has calculated the charge, prepared the complete background study, carried out the public process and passed a new by-law, the emphasis shifts to implementation matters. These include notices, potential appeals and complaints, credits, front-ending agreements, subdivision agreement conditions and finally the collection of revenues and funding of projects. The sections that follow present an overview of the requirements in each case. 8.3.2 Notice of Passage In accordance with section 13 of the D.C.A., when a D.C. by-law is passed, the Township Clerk shall give written notice of the passing and of the last day for appealing the by-law (the day that is 40 days after the day it was passed). Such notice must be given no later than 20 days after the day the by-law is passed (i.e., as of the day of newspaper publication, the mailing of the notice, or publication on Township website). Section 10 of O. Reg. 82/98 further defines the notice requirements which are summarized as follows: - notice may be given by publication in a newspaper which is (in the Clerk's opinion) of sufficient circulation to give the public reasonable notice, or by Township website, personal service, fax, or mail to every owner of land in the area to which the by-law relates; - subsection 10 (4) lists the persons/organizations who must be given notice; and - subsection 10 (5) lists the eight items that the notice must cover. 8.3.3 By-law Pamphlet In addition to the "notice" information, the Township must prepare a "pamphlet" explaining each D.C. by-law in force, setting out: - a description of the general purpose of the D.C.s; Watson & Associates Economists Ltd. PAGE 8-4 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx - the "rules" for determining if a charge is payable in a particular case and for determining the amount of the charge; - the services to which the D.C.s relate; and - a description of the general purpose of the Treasurer's statement and where it may be received by the public. Where a by-law is not appealed to the OLT, the pamphlet must be readied within 60 days after the by-law comes into force. Later dates apply to appealed by-laws. The Township must give one copy of the most recent pamphlet without charge to any person who requests one. 8.3.4 Appeals Sections 13 to 19 of the D.C.A. set out the requirements relative to making and processing a D.C. by-law appeal and OLT hearing in response to an appeal. Any person or organization may appeal a D.C. by-law to the OLT by filing a notice of appeal with the Township Clerk, setting out the objection to the by-law and the reasons supporting the objection. This must be done by the last day for appealing the by-law, which is 40 days after the by-law is passed. The Township is conducting a public consultation process in order to address the issues that come forward as part of that process, thereby avoiding or reducing the need for an appeal to be made. 8.3.5 Complaints A person required to pay a D.C., or his agent, may complain to the Township Council imposing the charge that: - the amount of the charge was incorrectly determined; - the reduction to be used against the D.C. was incorrectly determined; or - there was an error in the application of the D.C. Watson & Associates Economists Ltd. PAGE 8-5 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Sections 20 to 25 of the D.C.A. set out the requirements that exist, including the fact that a complaint may not be made later than 90 days after a D.C. (or any part of it) is payable. A complainant may appeal the decision of Township Council to the OLT. 8.3.6 Credits Sections 38 to 41 of the D.C.A. set out a number of credit requirements, which apply where a municipality agrees to allow a person to perform work in the future that relates to a service in the D.C. by-law. These credits would be used to reduce the amount of D.C.s to be paid. The value of the credit is limited to the reasonable cost of the work which does not exceed the average level of service. The credit applies only to the service to which the work relates unless the municipality agrees to expand the credit to other services for which a D.C. is payable. 8.3.7 Front-Ending Agreements The Township and one or more landowners may enter into a front-ending agreement that provides for the costs of a project that will benefit an area in the Township to which the D.C. by-law applies. Such an agreement can provide for the costs to be borne by one or more parties to the agreement who are, in turn, reimbursed in future by persons who develop land defined in the agreement. Part III of the D.C.A. (sections 44 to 58) addresses front-ending agreements and removes some of the obstacles to their use which were contained in the Development Charges Act, 1989. Accordingly, the Township assesses whether this mechanism is appropriate for its use, as part of funding projects prior to Township funds being available. 8.3.8 Severance and Subdivision Agreement Conditions Section 59 of the D.C.A. prevents a municipality from imposing directly or indirectly, a charge related to development or a requirement to construct a service related to development, by way of a condition or agreement under section 51 or section 53 of the Planning Act, except for: Watson & Associates Economists Ltd. PAGE 8-6 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx - "local services, related to a plan of subdivision or within the area to which the plan relates, to be installed or paid for by the owner as a condition of approval under section 51 of the Planning Act;" and - "local services to be installed or paid for by the owner as a condition of approval under section 53 of the Planning Act." It is also noted that subsection 59 (4) of the D.C.A. requires that the municipal approval authority for a draft plan of subdivision under subsection 51 (31) of the Planning Act, use its power to impose conditions to ensure that the first purchaser of newly subdivided land is informed of all the D.C.s related to the development, at the time the land is transferred. In this regard, if the municipality in question is a commenting agency, in order to comply with subsection 59 (4) of the D.C.A. it would need to provide to the approval authority information regarding the applicable municipal D.C.s related to the site. If the Township is an approval authority for the purposes of section 51 of the Planning Act, it would be responsible to ensure that it collects information from all entities that can impose a D.C. The most effective way to ensure that purchasers are aware of this condition would be to require it as a provision in a registered subdivision agreement, so that any purchaser of the property would be aware of the charges at the time the title was searched prior to closing a transaction conveying the lands. Appendices Watson & Associates Economists Ltd. PAGE A-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Appendix A Background Information on Residential and Non- Residential Growth Forecast Watson & Associates Economists Ltd. PAGE A-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Schedule 1 Township of Oro-Medonte Residential Growth Forecast Summary Population Institutional Population Population Excluding Institutional Population Singles & Semi- Detached Multiple Dwellings[2] Apartments[3] Other Total Households Equivalent Institutional Households 20,930 20,078 43 20,035 7,292 115 50 19 7,476 39 2.686 21,930 21,036 31 21,005 7,755 85 130 30 8,000 28 2.630 23,990 23,017 67 22,950 8,365 95 140 25 8,625 61 2.669 24,870 23,860 70 23,790 8,684 95 149 25 8,953 64 2.665 29,430 28,230 83 28,147 9,826 253 554 25 10,658 75 2.649 1,000 958 -12 970 463 -30 80 11 524 -11 2,060 1,981 36 1,945 610 10 10 -5 625 33 880 843 3 840 319 0 9 0 328 3 4,560 4,370 13 4,357 1,142 158 405 0 1,705 11 Mid 2011 - Mid 2016 Mid 2016 - Mid 2021 Mid 2011 Mid 2016 Mid 2021 Mid 2024 Mid 2034 Mid 2021 - Mid 2024 Historical Forecast Incremental Population (Including Census Undercount)[1] Year Excluding Census Undercount Housing Units Person Per Unit (P.P.U.): Total Population/ Total Households Mid 2024 - Mid 2034 [1] Population includes the Census undercount estimated at approximately 4.2% and has been rounded. [2] Includes townhouses and apartments in duplexes. [3] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units. Notes: Numbers may not add due to rounding. Source: Watson & Associates Economists Ltd. Watson & Associates Economists Ltd. PAGE A-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Figure 1 Township of Oro-Medonte Annual Housing Forecast [1] [1] Growth forecast represents calendar year. Source: Historical housing activity derived from Statistics Canada and Township of Oro-Medonte building permit data, 2014 to 2023. 166 134 160 181 154 95 119 131 137 60 130 175 175 175 175 175 175 175 175 175 134 0 20 40 60 80 100 120 140 160 180 200 Housing Units Years Historical Low Density Medium Density High Density Historical Average Watson & Associates Economists Ltd. PAGE A-4 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Schedule 2 Township of Oro-Medonte Estimate of the Anticipated Amount, Type and Location of Residential Development for Which Development Charges can be Imposed Horseshoe Valley (Water) 2024 - 2034 402 158 8 568 1,597 -9 1,588 0 1,588 Warminster (Water) 2024 - 2034 49 0 0 49 147 -4 143 0 143 Craighurst (Water) 2024 - 2034 361 0 150 511 1,325 -1 1,324 0 1,324 Remaining Water Serviced Areas 2024 - 2034 106 0 8 114 331 -26 305 13 318 Non-Municipal Water Serviced Areas [3] 2024 - 2034 224 0 239 463 1,058 -61 997 0 997 Township of Oro-Medonte 2024 - 2034 1,142 158 405 1,705 4,458 -101 4,357 13 4,370 Institutional Population Net Population Including Institutional Location Residential Units In New Units Population Change Development Timing Single & Semi- Detached Multiples[1] Apartments[2] Total Gross Population Existing Unit Net Population Increase, Excluding Institutional [1] Includes townhouses and apartments in duplexes. [2] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units. [3] Includes growth in areas with no municipal water servicing. This includes private serviced and unserviced areas. Source: Watson & Associates Economists Ltd. Watson & Associates Economists Ltd. PAGE A-5 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Schedule 3 Township of Oro-Medonte Current Year Growth Forecast Mid-2021 to Mid-2024 Mid 2021 Population 23,017 Occupants of Units (2) 328 New Housing Units, multiplied by P.P.U. (3) 2.926 Mid 2021 to Mid 2024 gross population increase 960 960 Occupants of New Units 3 Equivalent Institutional Units, multiplied by P.P.U. (3) 1.100 Mid 2021 to Mid 2024 gross population increase 3 3 Decline in Housing Units (4) 8,625 Unit Occupancy, multiplied by P.P.U. decline rate (5) -0.014 Mid 2021 to Mid 2024 total decline in population -120 -120 Population Estimate to Mid 2024 23,860 Net Population Increase, Mid 2021 to Mid 2024 843 (1) 2021 population based on Statistics Canada Census unadjusted for Census undercount. (2) (3) Average number of persons per unit (P.P.U.) is assumed to be: Singles & Semi Detached 2.959 97% 2.878 Multiples (6) 2.328 0% 0.000 Apartments (7) 1.730 3% 0.047 Total 100% 2.926 ¹ Based on 2021 Census custom database ² Based on Building permit/completion activity (4) 2021 households taken from Statistics Canada Census. (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. (6) (7) Includes bachelor, 1-bedroom and 2-bedroom+ apartments. Note: Numbers may not add to totals due to rounding. Estimated residential units constructed, Mid-2021 to the beginning of the growth period assuming a six-month lag between construction and occupancy. Population Structural Type Persons Per Unit¹ (P.P.U.) % Distribution of Estimated Units² Weighted Persons Per Unit Average Includes townhouses and apartments in duplexes. Weighted persons per unit average of 0 due to no multiple housing increase from mid-2021 to mid-2024. Watson & Associates Economists Ltd. PAGE A-6 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Schedule 4 Township of Oro-Medonte 10-Year Growth Forecast Mid-2024 to Mid-2034 Mid 2024 Population 23,860 Occupants of Units (2) 1,705 New Housing Units, multiplied by P.P.U. (3) 2.615 Mid 2024 to Mid 2034 gross population increase 4,458 4,458 Occupants of New Units 11 Equivalent Institutional Units, multiplied by P.P.U. (3) 1.100 Mid 2024 to Mid 2034 gross population increase 13 13 Decline in Housing Units (4) 8,953 Unit Occupancy, multiplied by P.P.U. decline rate (5) -0.011 Mid 2024 to Mid 2034 total decline in population -101 -101 Population Estimate to Mid 2034 28,230 Net Population Increase, Mid 2024 to Mid 2034 4,370 (1) Mid 2024 Population based on: (2) Based upon forecast building permits/completions assuming a lag between construction and occupancy. (3) Average number of persons per unit (P.P.U.) is assumed to be: Singles & Semi Detached 2.997 67% 2.007 Multiples (6) 2.401 9% 0.223 Apartments (7) 1.620 24% 0.385 one bedroom or less 1.190 two bedrooms or more 1.826 Total 100% 2.615 ¹ Persons per unit based on adjusted Statistics Canada Custom 2021 Census database. ² Forecast unit mix based upon historical trends and housing units in the development process. (4) Mid 2024 households based upon 2021 Census (8,625 units) + Mid 2021 to Mid 2024 unit estimate (328 units) = 8,953 units. (5) (6) Includes townhouses and apartments in duplexes. (7) Includes bachelor, 1-bedroom and 2-bedroom+ apartments. Note: Numbers may not add to totals due to rounding. Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. Population 2021 Population (23,017) + Mid 2021 to Mid 2024 estimated housing units to beginning of forecast period (328 x 2.926 = 960) + (3 x 1.1 = 3) + (8,625 x -0.014 = -120) = 23,860 Structural Type Persons Per Unit¹ (P.P.U.) % Distribution of Estimated Units² Weighted Persons Per Unit Average Watson & Associates Economists Ltd. PAGE A-7 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Schedule 5 Township of Oro-Medonte Summary of Active Development Applications 38 0 0 38 100% 0% 0% 100% 862 48 0 910 95% 5% 0% 100% 242 110 345 697 35% 16% 49% 100% Total 1,142 158 345 1,645 % Breakdown 69% 10% 21% 100% Stage of Development Density Type Singles & Semi- Detached Multiples[1] Apartments[2] Total Registered Not Built % Breakdown Draft Plans Approved % Breakdown % Breakdown Application Under Review[3] [1] Includes townhomes and apartments in duplexes. [2] Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Source: Derived from data provided by Township of Oro-Medonte, by Watson & Associates Economists Ltd.. Watson & Associates Economists Ltd. PAGE A-8 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Schedule 6 Township of Oro-Medonte Historical Residential Building Permits Years 2013 to 2022 Residential Building Permits Total 2014 90 9 67 166 2015 110 24 0 134 2016 160 0 0 160 2017 176 2 3 181 2018 133 15 6 154 Sub-total 669 50 76 795 Average (2014 - 2018) 134 10 15 159 % Breakdown 84% 6% 10% 100% 2019 81 5 9 95 2020 117 1 1 119 2021 127 0 4 131 2022 135 0 2 137 2023 57 0 3 60 Sub-total 517 6 19 542 Average (2019 - 2023) 103 1 4 108 % Breakdown 95% 1% 4% 100% 2014 - 2023 Total 1,186 56 95 1,337 Average 119 6 10 134 % Breakdown 89% 4% 7% 100% Singles & Semi Detached Multiples[1] Apartments[2] Year [1] Includes townhouses and apartments in duplexes. [2] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units. Source: Historical housing activity derived from Statistics Canada and Township of Oro-Medonte building permit data, 2014 to 2023. Watson & Associates Economists Ltd. PAGE A-9 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Schedule 7a Township of Oro-Medonte Person Per Unit by Age and Type of Dwelling (2021 Census) Age of Singles and Semi-Detached Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 15 Year Average 15 Year Average Adjusted[1] 1-5 - - - 2.989 3.611 2.959 6-10 - - 1.636 2.717 4.667 2.835 2.897 0.148 11-15 - - - 2.952 4.765 3.200 2.998 2.997 16-20 - - - 2.868 3.652 2.967 2.991 2.997 20-25 - - 2.077 2.646 4.235 2.814 2.955 2.997 25-35 - - - 2.512 4.083 2.560 35+ - 1.421 1.861 2.585 3.723 2.543 2.840 2.997 Total 0.231 1.958 1.876 2.666 3.922 2.678 Age of All Density Types Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 1-5 - - 2.000 2.989 3.611 2.921 6-10 - - 1.400 2.717 4.667 2.771 11-15 - - - 2.906 4.765 3.149 16-20 - - - 2.871 3.652 2.949 20-25 - - 2.071 2.627 4.235 2.791 25-35 - - - 2.512 3.846 2.607 35+ - 1.400 1.848 2.579 3.656 2.526 Total - 1.763 1.845 2.659 3.872 2.660 [1] Adjusted based on historical trends. Note: Does not include Statistics Canada data classified as "Other." P.P.U. Not calculated for samples less than or equal to 50 dwelling units and does not include institutional population. Watson & Associates Economists Ltd. PAGE A-10 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Schedule 7b Simcoe County Census Division Person Per Unit by Age and Type of Dwelling (2021 Census) Age of Multiples[1] Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 15 Year Average 15 Year Average Adjusted[3] 1-5 - 1.319 1.836 2.755 3.000 2.328 6-10 - 1.421 1.724 2.733 - 2.447 11-15 - 2.071 1.634 2.625 - 2.442 2.406 2.401 16-20 - 1.333 1.974 2.719 3.333 2.509 2.431 2.401 20-25 - 1.344 1.853 2.645 4.150 2.419 2.429 2.401 25-35 - 1.269 1.691 2.699 3.118 2.385 35+ 0.789 1.310 1.887 2.637 3.369 2.297 Total 1.250 1.344 1.833 2.673 3.478 2.370 Age of Apartments[2] Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 15 Year Average 15 Year Average Adjusted[3] 1-5 - 1.237 1.749 2.587 - 1.730 6-10 - 1.186 1.597 2.270 - 1.617 11-15 - 1.236 1.596 2.414 - 1.625 1.657 1.620 16-20 - 1.219 1.621 2.172 - 1.568 1.635 1.620 20-25 - 1.227 1.770 2.417 - 1.710 1.650 1.620 25-35 - 1.152 1.681 2.410 - 1.616 35+ 0.981 1.185 1.738 2.640 2.958 1.600 Total 1.014 1.193 1.711 2.527 3.129 1.620 Age of All Density Types Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 1-5 3.308 1.367 1.861 3.070 4.262 2.831 6-10 2.417 1.403 1.738 3.038 4.484 2.896 11-15 - 1.514 1.761 2.958 4.132 2.837 16-20 - 1.452 1.831 2.914 3.899 2.836 20-25 - 1.419 1.815 2.819 3.935 2.714 25-35 - 1.248 1.760 2.795 3.964 2.651 35+ 1.580 1.262 1.815 2.630 3.637 2.396 Total 1.977 1.305 1.808 2.785 3.894 2.589 [1] Includes townhouses and apartments in duplexes. [2] Includes bachelor, 1 bedroom and 2 bedroom+ apartments. [3] Adjusted based on historical trends. Note: Does not include Statistics Canada data classified as "Other." P.P.U. Not calculated for samples less than or equal to 50 dwelling units and does not include institutional population. Watson & Associates Economists Ltd. PAGE A-11 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Schedule 8 Township of Oro-Medonte Person Per Unit Structural Type and Age of Dwelling (2021 Census) 2.96 2.84 3.20 2.97 2.81 2.56 2.54 2.33 2.45 2.44 2.51 2.42 2.38 2.30 1.73 1.62 1.63 1.57 1.71 1.62 1.60 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 1-5 6-10 11-15 16-20 20-25 25-35 35+ Persons Per Dwelling Age of Dwelling Singles and Semi-Detached Multiples Apartments Multiple and Apartment P.P.U.s are based on Simcoe County Census Division. Watson & Associates Economists Ltd. PAGE A-12 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Schedule 9a Township of Oro-Medonte Employment Forecast, 2024 to 2034 Employment Mid 2011 20,078 0.005 0.057 0.054 0.052 0.018 0.186 0.061 0.247 100 1,145 1,090 1,045 355 3,735 1,218 4,953 2,590 Mid 2016 21,036 0.005 0.061 0.074 0.061 0.033 0.233 0.059 0.292 95 1,280 1,548 1,288 695 4,905 1,236 6,141 3,625 Mid 2024 23,860 0.004 0.065 0.076 0.065 0.044 0.254 0.063 0.317 105 1,543 1,823 1,544 1,046 6,061 1,513 7,575 4,518 Mid 2034 28,230 0.004 0.070 0.076 0.065 0.044 0.258 0.063 0.321 112 1,971 2,134 1,827 1,231 7,275 1,791 9,066 5,304 Mid 2011 - Mid 2016 958 0.000 0.004 0.019 0.009 0.015 0.047 -0.002 0.045 -5 135 458 243 340 1,170 18 1,188 1,035 Mid 2016 - Mid 2024 2,824 0.000 0.004 0.003 0.004 0.011 0.021 0.005 0.026 10 263 276 257 351 1,156 277 1,434 893 Mid 2024 - Mid 2034 4,370 0.000 0.005 -0.001 0.000 0.000 0.004 0.000 0.004 7 428 311 283 185 1,214 278 1,491 786 Mid 2011 - Mid 2016 192 0.000 0.001 0.004 0.002 0.003 0.009 0.000 0.009 -1 27 92 49 68 234 4 238 207 Mid 2016 - Mid 2024 353 0.000 0.000 0.000 0.000 0.001 0.003 0.001 0.003 1 33 34 32 44 145 35 179 112 Mid 2024 - Mid 2034 437 0.000 0.001 0.000 0.000 0.000 0.000 0.000 0.000 1 43 31 28 18 121 28 149 79 Total (Excluding Work at Home and N.F.P.O.W.) Incremental Change Annual Average Total Including N.F.P.O.W. N.F.P.O.W.[1] Work at Home Industrial Commercial/ Population Related Total Employment (Including N.F.P.O.W.) Institutional N.F.P.O.W.[1] Activity Rate Period Population Primary Work at Home Industrial Commercial/ Population Related Institutional Total Employment Primary Total [1] Statistics Canada defines no fixed place of work (N.F.P.O.W.) employees as "persons who do not go from home to the same workplace location at the beginning of each shift. Such persons include building and landscape contractors, travelling salespersons, independent truck drivers, etc." Note: Statistics Canada 2021 Census place of work employment data has been reviewed. The 2021 Census employment results have not been utilized due to a significant increase in work at home employment captured due to Census enumeration occurring during the provincial COVID-19 lockdown from April 1, 2021 to June 14, 2021. Source: Watson & Associates Economists Ltd. Watson & Associates Economists Ltd. PAGE A-13 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Schedule 9b Township of Oro-Medonte Employment and Gross Floor Area (G.F.A.) Forecast, 2024 to 2034 Mid 2011 20,078 100 1,090 1,045 355 2,590 300,000 1,635,000 522,500 250,800 2,708,300 Mid 2016 21,036 95 1,548 1,288 695 3,625 285,000 2,321,300 643,800 491,100 3,741,200 Mid 2024 23,860 105 1,823 1,544 1,046 4,518 315,000 2,734,500 772,000 739,300 4,560,800 Mid 2034 28,230 112 2,134 1,827 1,225 5,298 336,000 3,201,000 913,500 862,600 5,313,100 Mid 2011 - Mid 2016 958 -5 458 243 340 1,035 Mid 2016 - Mid 2024 2,824 10 276 257 351 893 30,000 413,200 128,200 248,200 819,600 Mid 2024 - Mid 2034 4,370 7 311 283 179 780 21,000 466,500 141,500 123,300 752,300 Mid 2011 - Mid 2016 192 -1 92 49 68 207 Mid 2016 - Mid 2024 353 1 34 32 44 112 3,750 51,650 16,025 31,025 102,450 Mid 2024 - Mid 2034 437 1 31 28 18 78 2,100 46,650 14,150 12,330 75,230 Period Population Employment Gross Floor Area in Square Feet (Estimated)[¹] Primary[2] Incremental Change Industrial Commercial/ Population Related Institutional[3] Total Primary[2] Industrial Commercial/ Population Related Institutional[3] Total Annual Average [1] Square Foot Per Employee Assumptions Primary - Non-Bona Fide Farming 3,000 Industrial 1,500 Commercial/Population-Related 500 Institutional 690 [2] Primary industry includes agriculture and resource related employment. [3] Forecast institutional employment and gross floor area has been adjusted downward to account for employment associated with special care units. *Reflects Mid-2024 to Mid-2034 forecast period. Note: Numbers may not add up precisely due to rounding. Source: Watson & Associates Economists Ltd. Watson & Associates Economists Ltd. PAGE A-14 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Schedule 9c Township of Oro-Medonte Estimate of the Anticipated Amount, Type and Location of Non-Residential Development for Which Development Charges Can Be Imposed Horseshoe Valley (Water) 2024 - 2034 - - 72,000 61,100 133,100 233 Warminster (Water) 2024 - 2034 - - 5,000 2,100 7,100 13 Craighurst (Water) 2024 - 2044 - - 51,500 - 51,500 103 Remaining Water Serviced Areas 2024 - 2034 - - 3,000 57,300 60,300 89 Non-Municipal Water Serviced Areas [5] 2024 - 2034 21,000 466,500 10,000 2,800 500,300 342 Township of Oro-Medonte 2024 - 2034 21,000 466,500 141,500 123,300 752,300 780 Development Location Timing Primary G.F.A. S.F.[1],[2] Industrial G.F.A. S.F.[1] Commercial G.F.A. S.F.[1] Institutional G.F.A. S.F.[1],[3] Total Non- Residential G.F.A. S.F. Employment Increase[4] [1] Square Foot Per Employee Assumptions Primary - Non-Bona Fide Farming 3,000 Industrial 1,500 Commercial/Population-Related 500 Institutional 690 [2] Primary industry includes agriculture and resource related employment. [3] Forecast institutional employment and gross floor area has been adjusted downward to account for employment associated with special care units. [4] Employment Increase does not include No Fixed Place of Work. [5] Includes growth in areas with no municipal water servicing. This includes private serviced and unserviced areas. *Reflects Mid-2024 to Mid-2034 forecast period. Note: Numbers may not add up precisely due to rounding. Source: Watson & Associates Economists Ltd. Watson & Associates Economists Ltd. PAGE A-15 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Schedule 10 Township of Oro-Medonte Employment Categories by Major Employment Sector Primary Industry Employment 11 Agriculture, forestry, fishing and hunting 21 Mining and oil and gas extraction Industrial and Other Employment 22 Utilities 23 Construction 31-33 Manufacturing 41 Wholesale trade 48-49 Transportation and warehousing 56 Administrative and support Population Related Employment 44-45 Retail trade 51 Information and cultural industries 52 Finance and insurance 53 Real estate and rental and leasing 54 Professional, scientific and technical services 55 Management of companies and enterprises 56 Administrative and support 71 Arts, entertainment and recreation 72 Accommodation and food services 81 Other services (except public administration) Institutional 61 Educational services 62 Health care and social assistance 91 Public administration Comments Categories which relate to local land-based resources Categories which relate primarily to industrial land supply and demand Categories which relate primarily to population growth within the municipality NAICS Employment by industry Note: Employment is classified by North American Industry Classification System (NAICS) Code. Source: Watson & Associates Economists Ltd. Watson & Associates Economists Ltd. PAGE B-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Appendix B Level of Service Watson & Associates Economists Ltd. PAGE B-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Appendix B: Level of Service Cost (per capita) Services Related to a Highway - Roads $127,812.33 0.0277 km of roadways 4,614,164 per km 558,539,882 Services Related to a Highway - Bridges, Culverts & Structures $2,104.80 0.0023 Number of Bridges, Culverts & Structures 915,130 per item 9,197,976 Public Works - Facilities $1,390.23 2.1156 sq.ft. of building area 657 per sq.ft. 6,075,305 Public Works - Vehicles & Equipment $451.67 0.0018 No. of vehicles and equipment 250,928 per vehicle 1,973,798 Fire Protection Services - Facilities $700.44 1.1084 sq.ft. of building area 632 per sq.ft. 3,060,923 Fire Protection Services - Vehicles & Equipment $799.49 0.0013 No. of vehicles 614,992 per vehicle 3,493,771 Fire Protection Services - Small Equipment and Gear $123.45 0.0257 No. of equipment and gear 4,804 per item 539,477 Parkland Development $1,280.99 0.0156 Acres of Parkland 82,115 per acre 5,597,926 Parkland Amenities $573.01 0.0025 No. of parkland amenities 229,204 per amenity 2,504,054 Parkland Trails $371.92 1.5152 Linear Metres of Paths and Trails 245 per linear m 1,625,290 Recreation Facilities $1,648.72 2.4652 sq.ft. of building area 669 per sq.ft. 7,204,906 Parks & Recreation Vehicles and Equipment $28.06 0.0003 No. of vehicles and equipment 93,533 per vehicle 122,622 Provincial Offences Act including By-law Enforcement - Facilities $6.72 0.0186 sq.ft. of building area 361 per sq.ft. 29,366 Provincial Offences Act including By-law Enforcement - Vehicles & Equipment $10.42 0.0001 No. of Vehicles and Equipment 104,200 per vehicle 45,535 SUMMARY OF SERVICE STANDARDS AS PER DEVELOPMENT CHARGES ACT, 1997, AS AMENDED Service Related to a Highway Public Works Service Category Sub-Component Maximum Ceiling LOS 15 Year Average Service Standard Quality (per capita) Quantity (per capita) Fire Protection Provincial Offences Act including By-law Enforcement Parks & Recreation Watson & Associates Economists Ltd. PAGE B-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Service: Fire Protection Services - Facilities Unit Measure: sq.ft. of building area Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Bld'g Value ($/sq.ft.) Value/sq.ft. with land, site works, etc. Shanty Bay Old Station #1 1,763 1,763 1,763 1,763 1,763 1,763 1,763 1,763 1,763 1,763 1,763 1,322 1,322 1,322 1,322 $500 $614 Station #2 Hawkestone - 4 Bays 3,793 3,793 3,793 3,793 3,793 3,793 3,793 3,793 3,793 3,793 3,793 3,793 3,793 3,793 3,793 $500 $614 Station #3 Horseshoe Valley - 4 Bays (HQ) 7,680 7,680 7,680 7,680 7,680 7,680 7,680 7,680 7,680 7,680 7,680 7,680 7,680 7,680 7,680 $500 $614 Station #4 Rugby 1,813 1,813 1,813 1,813 1,813 1,813 1,813 1,813 1,813 1,813 1,813 1,813 1,813 1,813 1,813 $500 $614 Station #5 Warminster 2,211 2,211 2,211 2,211 2,211 2,211 2,211 2,211 2,211 3,141 3,141 3,141 3,141 3,141 3,141 $500 $614 Station #6 Moonstone 4,070 4,070 4,070 4,070 4,070 4,070 4,070 4,070 4,070 4,070 4,070 4,070 4,070 4,070 4,070 $500 $614 Shanty Bay New Station #1 - - - - - - - - - - - 8,669 8,669 8,669 8,669 $600 $814 Total 21,330 21,330 21,330 21,330 21,330 21,330 21,330 21,330 21,330 22,260 22,260 30,488 30,488 30,488 30,488 Population 20,112 20,061 20,078 20,147 20,292 20,468 20,763 21,036 21,492 22,003 22,427 22,682 23,017 23,390 23,870 Per Capita Standard 1.06 1.06 1.06 1.06 1.05 1.04 1.03 1.01 0.99 1.01 0.99 1.34 1.32 1.30 1.28 15 Year Average 2009 to 2023 Quantity Standard 1.11 Quality Standard $632 Service Standard $700 D.C. Amount (before deductions) 10 Year Forecast Population 4,370 $ per Capita $700 Eligible Amount $3,060,923 Watson & Associates Economists Ltd. PAGE B-4 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Service: Fire Protection Services - Vehicles & Equipment Contact : Interim Chief Ralph Domenelli (prior Chief was Hugh) Unit Measure: No. of vehicles Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Value ($/Vehicle) Pumper #1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $1,000,000 Tanker #1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $750,000 Pumper #2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $1,000,000 Rescue #2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $750,000 Tanker #2 1 1 1 1 1 1 1 1 - - - - - - - $750,000 Pumper/Tanker #2 - - - - - - - - 1 1 1 1 1 1 1 $1,000,000 UTV Polaris 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $10,000 UTV Trailer 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $10,000 ATV 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $25,000 Aerial Truck - 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $2,500,000 Pumper #3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $1,000,000 Pumper #6 (reserve) 1 1 - - - - - - - - - - - - - $1,000,000 Tanker #3 1 1 1 - - - - - - - - - - - - $750,000 Pumper/Tanker #3 - - - - - - - - - - - - 1 1 1 $1,000,000 Tanker #3 1 1 1 1 1 1 1 1 1 1 1 1 - - - $750,000 Unit #1 - Pickup Truck 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $75,000 Unit #2 - 4x4 Truck 1 - - - - - - - - - - - - - - $75,000 Unit # 2 - pickup truck - 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $75,000 Unit #3 - Crew Cab Truck 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $75,000 Unit # 4 - pickup truck - - - - 1 1 1 1 1 1 1 1 1 1 1 $75,000 Pumper #4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $1,000,000 Tanker #4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $750,000 Pumper #5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $1,000,000 Re-Hab Van 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $75,000 Support 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $75,000 Tanker #5 1 1 1 1 1 1 1 1 1 1 - - - - - $750,000 Pumper/Tanker #5 - - - - - - - - - - 1 1 1 1 1 $1,000,000 Pumper #6 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $1,000,000 Rescue #2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $750,000 Rescue truck - reserve - 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $750,000 Tanker #6 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $750,000 Airboat 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $350,000 Support #2 3/4 ton crew cab - - - - - - - - - - - - - 1 1 $125,000 Support #3 Mini Pumper 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $350,000 Support #5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $350,000 Total 27 29 28 27 28 28 28 28 28 28 28 28 28 29 29 Population 20,112 20,061 20,078 20,147 20,292 20,468 20,763 21,036 21,492 22,003 22,427 22,682 23,017 23,390 23,870 Per Capita Standard 0.0013 0.0014 0.0014 0.0013 0.0014 0.0014 0.0013 0.0013 0.0013 0.0013 0.0012 0.0012 0.0012 0.0012 0.0012 15 Year Average 2009 to 2023 Quantity Standard 0.0013 Quality Standard $614,992 Service Standard $799 D.C. Amount (before deductions) 10 Year Forecast Population 4,370 $ per Capita $799 Eligible Amount $3,493,771 Watson & Associates Economists Ltd. PAGE B-5 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Service: Fire Protection Services - Small Equipment and Gear Unit Measure: No. of equipment and gear Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Value ($/item) # of Equipped Firefighers 142 142 142 142 142 142 142 142 142 142 142 142 142 142 142 $9,000 Defibrilators 6 6 6 6 6 6 6 6 6 10 12 12 12 12 12 $5,000 Trainer Defibrilator 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 $2,500 Auto Extrication Equipment 3 3 3 3 3 3 3 3 3 3 5 5 5 5 5 $20,000 Thermal Image Camera 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $15,000 Self Contained Breathing Apparatus 79 79 79 79 79 79 79 60 60 60 60 60 60 60 60 $9,500 SCBA Masks 142 142 142 142 142 142 142 142 142 142 142 142 142 142 142 $600 Spare Air Cylinders 81 81 81 81 81 81 81 99 99 99 99 99 99 99 99 $1,400 Air Monitoring Equip/Calibration Tool 8 8 8 8 8 12 12 12 12 12 12 12 12 12 12 $5,600 Portable Radios 48 52 56 60 64 64 64 64 64 64 64 64 64 64 64 $2,100 FLIR night camera - - 1 1 1 1 1 1 1 1 1 1 1 1 1 $24,000 Positive Pressure Fans 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $12,000 Ice Water Rescue Suits 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 $1,700 Portable Pumps 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 $9,000 Breathing Air Compressor 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $65,000 Total 530 534 539 543 547 551 551 550 550 555 559 559 559 559 559 Population 20,112 20,061 20,078 20,147 20,292 20,468 20,763 21,036 21,492 22,003 22,427 22,682 23,017 23,390 23,870 Per Capita Standard 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0.02 0.02 15 Year Average 2009 to 2023 Quantity Standard 0.0257 Quality Standard $4,804 Service Standard $123 D.C. Amount (before deductions) 10 Year Forecast Population 4,370 $ per Capita $123 Eligible Amount $539,477 Watson & Associates Economists Ltd. PAGE B-6 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Service: Services Related to a Highway - Roads Unit Measure: km of roadways Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Value ($/km) Asphalt 290.00 317.33 344.67 372.00 399.33 426.67 454.00 457.10 457.10 457.10 466.40 499.00 505.00 526.00 526.00 $2,500,000 Surface Treated 96.00 100.33 104.67 109.00 113.33 117.67 122.00 122.30 122.60 122.90 123.20 92.00 85.00 66.00 66.00 $1,500,000 Gravel 175.00 148.42 121.83 95.25 68.67 42.08 15.50 17.00 18.50 20.00 21.50 21.50 21.50 20.00 20.00 $750,000 Concrete 0.90 0.90 0.90 0.90 0.90 0.90 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 Land (acres) 2,773 2,798 2,823 2,848 2,873 2,898 2,923 2,947 2,956 2,965 3,020 3,027 3,022 3,025 3,025 $499,000 Total (km of Roads) 562 567 572 577 582 587 592 597 599 601 612 613 612 613 613 Population 20,112 20,061 20,078 20,147 20,292 20,468 20,763 21,036 21,492 22,003 22,427 22,682 23,017 23,390 23,870 Per Capita Standard 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 15 Year Average 2009 to 2023 Quantity Standard 0.03 Quality Standard $4,614,164 Service Standard $127,812 D.C. Amount (before deductions) 10 Year Forecast Population 4,370 $ per Capita $127,812 Eligible Amount $558,539,882 Watson & Associates Economists Ltd. PAGE B-7 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Service: Services Related to a Highway - Bridges, Culverts & Structures Unit Measure: Number of Bridges, Culverts & Structures Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Value ($/item) Bridges & Culverts (>3 metres) 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 $900,000 Total 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 Population 20,112 20,061 20,078 20,147 20,292 20,468 20,763 21,036 21,492 22,003 22,427 22,682 23,017 23,390 23,870 Per Capita Standard 0.0025 0.0025 0.0025 0.0025 0.0025 0.0024 0.0024 0.0024 0.0023 0.0023 0.0022 0.0022 0.0022 0.0021 0.0021 15 Year Average 2009 to 2023 Quantity Standard 0.0023 Quality Standard $915,130 Service Standard $2,105 D.C. Amount (before deductions) 10 Year Forecast Population 4,370 $ per Capita $2,105 Eligible Amount $9,197,976 Watson & Associates Economists Ltd. PAGE B-8 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Class of Service: Public Works - Facilities Unit Measure: sq.ft. of building area Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Bld'g Value ($/sq.ft.) Value/sq.ft. with land, site works, etc. North Yard - (cement block, poured concrete, insulated & covered with steel, flat roof) 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 $500 $1,013 South Yard 12,465 12,465 12,465 12,465 12,465 12,465 12,465 12,465 12,465 12,465 12,465 12,465 12,465 12,465 12,465 $500 $640 Sand Storage Building 1 - square storage 10,797 10,797 10,797 10,797 10,797 10,797 10,797 10,797 10,797 10,797 10,797 10,797 10,797 10,797 10,797 $175 $175 Sand Storage Building 2 10,645 10,645 10,645 10,645 10,645 10,645 10,645 10,645 10,645 10,645 10,645 10,645 10,645 10,645 10,645 $175 $175 North Yard - Storage Building (steel) - - - - 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 $175 $175 Small Crescent Storage 1,344 1,344 1,344 1,344 1,344 1,344 1,344 1,344 1,344 1,344 1,344 1,344 1,344 1,344 1,344 $175 $817 Aggregate Resource Land (Acres) 88 88 88 88 88 88 88 88 88 88 88 88 88 88 88 $100,000 $100,000 Total 42,939 42,939 42,939 42,939 46,139 46,139 46,139 46,139 46,139 46,139 46,139 46,139 46,139 46,139 46,139 Population 20,112 20,061 20,078 20,147 20,292 20,468 20,763 21,036 21,492 22,003 22,427 22,682 23,017 23,390 23,870 Per Capita Standard 2.1350 2.1404 2.1386 2.1313 2.2738 2.2542 2.2222 2.1933 2.1468 2.0969 2.0573 2.0342 2.0046 1.9726 1.9329 15 Year Average 2009 to 2023 Quantity Standard 2.1156 Quality Standard $657 Service Standard $1,390 D.C. Amount (before deductions) 10 Year Forecast Population 4,370 $ per Capita $1,390 Eligible Amount $6,075,305 Watson & Associates Economists Ltd. PAGE B-9 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Class of Service: Public Works - Vehicles & Equipment Unit Measure: No. of vehicles and equipment Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Value ($/Vehicle) Excavator 2.00 2.00 2.00 2.00 - - - - - - - - - - - $489,000 1/2 ton pickups 8.00 9.00 9.00 9.00 9.00 9.00 9.00 - - - - - - - - $41,000 Grader 3.00 2.00 2.00 2.00 2.00 2.00 2.00 - - - - - - - - $454,000 Loaders 2.00 2.00 2.00 2.00 2.00 2.00 2.00 - - - - - - - - $320,000 Tractor Backhoe 1.00 1.00 1.00 1.00 2.00 2.00 2.00 - - - - - - - - $181,000 Utility Tractor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - - - - - - - $133,000 Bull dozer 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - - - - - - - $206,000 Street Sweeper 2.00 2.00 2.00 2.00 2.00 2.00 2.00 - - - - - - - - $330,000 Tandem Plow/ Sand Truck 11.00 12.00 12.00 11.00 11.00 11.00 11.00 - - - - - - - - $347,000 Single Axle Plow /Sand Truck 2.00 2.00 2.00 2.00 2.00 2.00 2.00 - - - - - - - - $314,000 FORD/COF - - - - - - - 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 $70,000 Sterling - - - - - - - 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 $465,000 Chev - - - - - - - 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 $70,000 1998 Caterpillar Loader - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $465,000 Freightliner - - - - - - - 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 $143,000 CHEV/SIL - - - - - - - 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 $57,000 2008 Elgin Pelican Sweeper - - - - - - - 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 $327,000 International - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $465,000 Western Star - - - - - - - 2.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 $465,000 White/FRHT - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $458,000 Freightliner - - - - - - - 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 $465,000 2007 Caterpillar Grader - - - - - - - 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 $265,000 Freightliner - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $465,000 2011 Caterpillar Backhoe - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $177,000 1999 Caterpillar Wheel Loader - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $465,000 2013 Caterpillar Backhoe - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $166,000 JCTR TAG - - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $29,000 RING 550 - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $126,000 FALCON - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $63,000 Flail Boom Mower - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $94,000 2014 Vermeer Brush Chipper - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $57,000 2000 John Deere Bulldozer - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $157,000 New Holland Tractor/Loader - - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $322,000 Watson & Associates Economists Ltd. PAGE B-10 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Class of Service: Public Works - Vehicles & Equipment Unit Measure: No. of vehicles and equipment Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Value ($/Vehicle) FORD SRW - - - - - - - 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 $57,000 HDEI HOEOP - - - - - - - - 1.0 1.0 1.0 1.0 1.0 1.0 1.0 $64,000 Bobcat - - - - - - - - 1.0 1.0 1.0 1.0 1.0 1.0 1.0 $81,000 2015 Bobcat Snowblower - - - - - - - - 1.0 1.0 1.0 1.0 1.0 1.0 1.0 $10,000 2017 Bobcat Sweeper - - - - - - - - 1.0 1.0 1.0 1.0 1.0 1.0 1.0 $9,000 Excavator (Contract) - - - - 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 $458,000 Total 33.00 34.00 34.00 33.00 32.40 32.40 32.40 35.40 44.40 44.40 44.40 44.40 44.40 44.40 44.40 Population 20,112 20,061 20,078 20,147 20,292 20,468 20,763 21,036 21,492 22,003 22,427 22,682 23,017 23,390 23,870 Per Capita Standard 0.0016 0.0017 0.0017 0.0016 0.0016 0.0016 0.0016 0.0017 0.0021 0.0020 0.0020 0.0020 0.0019 0.0019 0.0019 15 Year Average 2009 to 2023 Quantity Standard 0.0018 Quality Standard $250,928 Service Standard $452 D.C. Amount (before deductions) 10 Year Forecast Population 4,370 $ per Capita $452 Eligible Amount $1,973,798 Watson & Associates Economists Ltd. PAGE B-11 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Service: Parkland Development Unit Measure: Acres of Parkland Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Value ($/Acre) Community Parks 56.50 56.50 56.50 56.50 56.50 56.50 56.50 56.50 56.50 56.50 56.50 56.50 56.50 56.50 56.50 $150,000 Neighbourhood Parks 31.10 31.10 31.10 31.10 31.10 31.10 31.10 31.10 31.10 31.10 31.10 31.10 31.10 31.10 31.10 $150,000 Regional Parks 37.20 37.20 37.20 37.20 37.20 37.20 37.20 37.20 37.20 37.20 37.20 37.20 37.20 37.20 37.20 $150,000 Green Space 77.50 89.50 89.50 89.50 89.50 89.50 89.50 89.50 89.50 89.50 89.50 89.50 89.50 89.50 89.50 $50,000 Undeveloped Parkland 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 121.00 $35,000 Total 323.30 335.30 335.30 335.30 335.30 335.30 335.30 335.30 335.30 335.30 335.30 335.30 335.30 335.30 335.30 Population 20,112 20,061 20,078 20,147 20,292 20,468 20,763 21,036 21,492 22,003 22,427 22,682 23,017 23,390 23,870 Per Capita Standard 0.0161 0.0167 0.0167 0.0166 0.0165 0.0164 0.0161 0.0159 0.0156 0.0152 0.0150 0.0148 0.0146 0.0143 0.0140 15 Year Average 2009 to 2023 Quantity Standard 0.0156 Quality Standard $82,115 Service Standard $1,281 D.C. Amount (before deductions) 10 Year Forecast Population 4,370 $ per Capita $1,281 Eligible Amount $5,597,926 Watson & Associates Economists Ltd. PAGE B-12 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Service: Parkland Trails Unit Measure: Linear Metres of Paths and Trails Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Value ($/ Linear Metre) Rail Trail 28,000 28,000 29,200 29,200 29,200 29,200 29,200 29,200 29,200 29,200 29,200 29,200 29,200 29,200 29,200 $250 Lohurau Trail 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 $100 Bidwell Trail - - - - - - - - - - 1,800 1,800 1,800 1,800 1,800 $100 Walkways Line 4 - - 600 600 600 600 600 600 600 600 600 600 600 600 600 $300 Memorial (including bridge) - - - - - - - - - 250 250 250 250 250 250 $900 Sweetwater Park 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 $250 Total 30,200 30,200 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,250 34,050 34,050 34,050 34,050 34,050 Population 20,112 20,061 20,078 20,147 20,292 20,468 20,763 21,036 21,492 22,003 22,427 22,682 23,017 23,390 23,870 Per Capita Standard 1.50 1.51 1.59 1.59 1.58 1.56 1.54 1.52 1.49 1.47 1.52 1.50 1.48 1.46 1.43 15 Year Average 2009 to 2023 Quantity Standard 1.52 Quality Standard $245 Service Standard $372 D.C. Amount (before deductions) 10 Year Forecast Population 4,370 $ per Capita $372 Eligible Amount $1,625,290 Watson & Associates Economists Ltd. PAGE B-13 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Service: Parks & Recreation Vehicles and Equipment Unit Measure: No. of vehicles and equipment Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Value ($/Vehicle) Light Duty Vehicles 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 $75,000 2005 Olympia Ice Resurfacer 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $200,000 2019 John Deere Tractor 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $100,000 Total 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 Population 20,112 20,061 20,078 20,147 20,292 20,468 20,763 21,036 21,492 22,003 22,427 22,682 23,017 23,390 23,870 Per Capita Standard 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 15 Year Average 2009 to 2023 Quantity Standard 0.0003 Quality Standard $93,533 Service Standard $28 D.C. Amount (before deductions) 10 Year Forecast Population 4,370 $ per Capita $28 Eligible Amount $122,622 Watson & Associates Economists Ltd. PAGE B-14 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Service: Recreation Facilities Unit Measure: sq.ft. of building area Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Bld'g Value ($/sq.ft.) Value/sq.ft. with land, site works, etc. Carley Community Hall 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 $500 $587 Craighurst Community Hall 1,025 1,025 1,025 1,025 - - - - - - - - - - - $500 $587 Eady Community Hall 1,876 1,876 1,876 1,876 1,876 1,876 1,876 1,876 1,876 1,876 1,876 1,876 1,876 1,876 1,876 $500 $587 Edgar Community Hall 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 $500 $587 Hawkestone Community Hall 2,175 2,175 2,175 2,175 2,175 2,175 2,175 2,175 2,175 2,175 2,175 2,175 2,175 2,175 2,175 $500 $587 Jarratt Community Hall 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 2,290 $500 $587 Old Town Hall 1,988 1,988 1,988 1,988 1,988 1,988 1,988 1,988 1,988 1,988 1,988 1,988 1,988 1,988 1,988 $500 $587 Oro-Medonte Community Arena 32,150 32,150 32,150 32,150 32,150 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500 $600 $698 Oro-Medonte Community Arena Banquet Hall 2,850 2,850 2,850 2,850 2,850 2,850 2,850 2,850 2,850 2,850 2,850 2,850 2,850 2,850 2,850 $500 $587 Warminster Community Hall 700 700 - - - - - - - - - - - - - $500 $587 Total 47,354 47,354 46,654 46,654 45,629 55,979 55,979 55,979 55,979 55,979 55,979 55,979 55,979 55,979 55,979 Population 20,112 20,061 20,078 20,147 20,292 20,468 20,763 21,036 21,492 22,003 22,427 22,682 23,017 23,390 23,870 Per Capita Standard 2.35 2.36 2.32 2.32 2.25 2.74 2.70 2.66 2.60 2.54 2.50 2.47 2.43 2.39 2.35 15 Year Average 2009 to 2023 Quantity Standard 2.47 Quality Standard $669 Service Standard $1,649 D.C. Amount (before deductions) 10 Year Forecast Population 4,370 $ per Capita $1,649 Eligible Amount $7,204,906 Watson & Associates Economists Ltd. PAGE B-15 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Service: Provincial Offences Act including By-law Enforcement - Facilities Unit Measure: sq.ft. of building area Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Bld'g Value ($/sq.ft.) Value/sq.ft. with land, site works, etc. Office Space with Admin Building 200 200 200 200 200 200 200 200 - - - - - - - $600 $698 Trailer - - - - - - - - 650 650 650 650 650 650 650 $175 $229 Total 200 200 200 200 200 200 200 200 650 650 650 650 650 650 650 Population 20,112 20,061 20,078 20,147 20,292 20,468 20,763 21,036 21,492 22,003 22,427 22,682 23,017 23,390 23,870 Per Capita Standard 0.0099 0.0100 0.0100 0.0099 0.0099 0.0098 0.0096 0.0095 0.0302 0.0295 0.0290 0.0287 0.0282 0.0278 0.0272 15 Year Average 2009 to 2023 Quantity Standard 0.0186 Quality Standard $361 Service Standard $7 D.C. Amount (before deductions) 10 Year Forecast Population 4,370 $ per Capita $7 Eligible Amount $29,366 Watson & Associates Economists Ltd. PAGE B-16 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Township of Oro-Medonte Service Standard Calculation Sheet Service: Provincial Offences Act including By-law Enforcement - Vehicles & Equipment Unit Measure: No. of Vehicles and Equipment Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Bld'g Value ($/sq.ft.) 2008 F150 1 1 1 1 1 1 1 1 - - - - - - - $65,000 2012 Ford Transit - - - 1 1 1 1 1 1 1 1 1 - - - $65,000 2014 Chev Equinox Vin # 9800 - - - - - - - 1 1 1 1 1 1 - - $65,000 2015 Ford Escape Vin # 8108 - - - - - - - - 1 1 1 1 1 1 1 $65,000 2016 Chev Silverado Vin # 7142 - - - - - - - - 1 1 1 1 1 1 1 $65,000 2016 Ford Taurus Vin # 7304 - Police - - - - - - - - 1 1 1 1 1 1 1 $65,000 2019 Dodge Caravan Vin # 4465 - - - - - - - - - - 1 1 1 1 1 $65,000 2020 Dodge Grand Caravan Vin # 0010 - - - - - - - - - - - 1 1 1 1 $65,000 Total 1 1 1 2 2 2 2 3 5 5 6 7 6 5 5 Population 20,112 20,061 20,078 20,147 20,292 20,468 20,763 21,036 21,492 22,003 22,427 22,682 23,017 23,390 23,870 Per Capita Standard - - - 0.0001 0.0001 0.0001 0.0001 0.0001 0.0002 0.0002 0.0003 0.0003 0.0003 0.0002 0.0002 15 Year Average 2009 to 2023 Quantity Standard 0.0001 Quality Standard $104,200 Service Standard $10 D.C. Amount (before deductions) 10 Year Forecast Population 4,370 $ per Capita $10 Eligible Amount $45,535 Watson & Associates Economists Ltd. PAGE C-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Appendix C Long-Term Capital and Operating Cost Examination Watson & Associates Economists Ltd. PAGE C-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Appendix C: Long-Term Capital and Operating Cost Examination Township of Oro-Medonte Annual Capital and Operating Cost Impact As a requirement of the Development Charges Act, 1997, as amended, under subsection 10 (2) (c), an analysis must be undertaken to assess the long-term capital and operating cost impacts for the capital infrastructure projects identified within the development charge. As part of this analysis, it was deemed necessary to isolate the incremental operating expenditures directly associated with these capital projects, factor in cost savings attributable to economies of scale or cost sharing where applicable and prorate the cost on a per unit basis (i.e., sq.ft. of building space, per vehicle, etc.). This was undertaken through a review of the Township's approved 2022 Financial Information Return (F.I.R.). In addition to the operational impacts, over time the initial capital projects will require replacement. This replacement of capital is often referred to as lifecycle cost. By definition, lifecycle costs are all the costs which are incurred during the life of a physical asset, from the time its acquisition is first considered, to the time it is taken out of service for disposal or redeployment. The method selected for lifecycle costing is the sinking fund method which provides that money will be contributed annually and invested, so that those funds will grow over time to equal the amount required for future replacement. The following factors were utilized to calculate the annual replacement cost of the capital projects (annual contribution = factor X capital asset cost) and are based on an annual growth rate of 2% (net of inflation) over the average useful life of the asset: Watson & Associates Economists Ltd. PAGE C-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Table C-1 Township of Oro-Medonte Lifecycle Cost Factors and Average Useful Lives Average Useful Life Factor Water Infrastructure 80 0.005160705 Facilities 50 0.01182321 Services Related to a Highway 50 0.01182321 Parkland Development 40 0.016555748 Vehicles 15 0.057825472 Small Equipment & Gear 10 0.091326528 Lifecycle Cost Factors Asset Table C-2 depicts the annual operating impact resulting from the proposed gross capital projects at the time they are all in place. It is important to note that, while Township program expenditures will increase with growth in population, the costs associated with the new infrastructure (i.e., facilities) would be delayed until the time these works are in place. Table C-2 Township of Oro-Medonte Operating and Capital Expenditure Impacts for Future Capital Expenditures SERVICE/CLASS OF SERVICE GROSS COST LESS BENEFIT TO EXISTING ANNUAL LIFECYCLE EXPENDITURES ANNUAL OPERATING EXPENDITURES TOTAL ANNUAL EXPENDITURES 1. Water Services 1.1 Treatment, storage and distribution systems 14,675,217 303,307 391,876 695,183 2. Services Related to a Highway 2.1 Roads and Related 8,023,832 356,815 1,625,042 1,981,857 2.2 Public Works 13,686,900 738,511 150,977 889,488 3. Fire Protection Services 3.1 Fire facilities, vehicles and equipment 4,648,217 100,311 479,529 579,840 4. Parks and Recreation Services 4.1 Park development, amenities, trails, recreation facilities, vehicles and eq 19,806,943 798,708 421,896 1,220,604 5. Provincial Offences Act (By-Law Enforcement) 5.1 P.O.A. Facilities and vehicles 688,500 34,192 - 34,192 6. Growth Studies 6.1 Growth Studies 1,297,216 - - - Total 62,826,825 2,331,844 3,069,320 5,401,164 Watson & Associates Economists Ltd. PAGE D-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Appendix D D.C. Reserve Fund Policy Watson & Associates Economists Ltd. PAGE D-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Appendix D: D.C. Reserve Fund Policy D.1 Legislative Requirements The Development Charges Act, 1997, as amended (D.C.A.) requires development charge (D.C.) collections (and associated interest) to be placed in separate reserve funds. Sections 33 through 36 of the D.C.A. provide the following regarding reserve fund establishment and use: - A municipality shall establish a reserve fund for each service to which the D.C. by-law relates; subsection 7 (1), however, allows services to be grouped into categories of services for reserve fund (and credit) purposes and for classes of services to be established. - The municipality shall pay each D.C. it collects into a reserve fund or funds to which the charge relates. - The money in a reserve fund shall be spent only for the "capital costs" determined through the legislated calculation process (as per subsection 5 (1) 2 to 8). - Money may be borrowed from the fund but must be paid back with interest (O. Reg. 82/98, subsection 11 (1) defines this as Bank of Canada rate either on the day the by-law comes into force or, if specified in the by-law, the first business day of each quarter). - D.C. reserve funds may not be consolidated with other municipal reserve funds for investment purposes and may only be used as an interim financing source for capital undertakings for which D.C.s may be spent (section 37). Annually, the Treasurer of the municipality is required to provide Council with a financial statement related to the D.C. by-law(s) and reserve funds. This statement must be made available to the public and may be requested to be forwarded to the Minister of Municipal Affairs and Housing. Subsection 43 (2) and O. Reg. 82/98 prescribe the information that must be included in the Treasurer's statement, as follows: - opening balance; - closing balance; Watson & Associates Economists Ltd. PAGE D-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx - description of each service and/or service category for which the reserve fund was established (including a list of services within a service category); - transactions for the year (e.g. collections, draws) including each asset's capital costs to be funded from the D.C. reserve fund and the manner for funding the capital costs not funded under the D.C. by-law (i.e. non-D.C. recoverable cost share and post-period D.C. recoverable cost share); - for projects financed by D.C.s, the amount spent on the project from the D.C. reserve fund and the amount and source of any other monies spent on the project; - amounts borrowed, purpose of the borrowing, and interest accrued during previous year; - amount and source of money used by the municipality to repay municipal obligations to the D.C. reserve fund; - list of credits by service or service category (outstanding at the beginning of the year, given in the year, and outstanding at the end of the year by the holder); - for credits granted under section 14 of the previous D.C.A., a schedule identifying the value of credits recognized by the municipality, the service to which it applies and the source of funding used to finance the credit; and - a statement as to compliance with subsection 59 (1) of the D.C.A., whereby the municipality shall not impose, directly or indirectly, a charge related to a development or a requirement to construct a service related to development, except as permitted by the D.C.A. or another Act. Recent changes arising from Bill 109 (More Homes for Everyone Act, 2022) provide that the Council shall make the statement available to the public by posting the statement on the website or, if there is no such website, in the municipal office. In addition, Bill 109 introduced the following requirements which shall be included in the treasurer's statement. - For each service for which a development charge is collected during the year o whether, as of the end of the year, the municipality expects to incur the amount of capital costs that were estimated, in the relevant development charge background study, to be incurred during the term of the applicable development charge by-law, and o if the answer to subparagraph i is no, the amount the municipality now expects to incur and a statement as to why this amount is expected; Watson & Associates Economists Ltd. PAGE D-4 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx - For any service for which a development charge was collected during the year but in respect of which no money from a reserve fund was spent during the year, a statement as to why there was no spending during the year. Additionally, as per subsection 35 (3) of the D.C.A.: 35(3) If a service is prescribed for the purposes of this subsection, beginning in the first calendar year that commences after the service is prescribed and in each calendar year thereafter, a municipality shall spend or allocate at least 60 per cent of the monies that are in a reserve fund for the prescribed service at the beginning of the year. The services currently prescribed are water, wastewater, and services related to a highway. Therefore, as of 2023, a municipality shall spend or allocate at least 60 percent of the monies in the reserve fund at the beginning of the year. There are generally two (2) ways in which a municipality may approach this requirement: a) Include a schedule are part of the annual treasurer's statement; or b) Incorporate the information into the annual budgeting process. Based upon the above, Figure 1 and Attachments 1 and 2, set out the format for which annual reporting to Council should be provided. Attachment 3 provides for the schedule for allocating reserve fund balances to projects. D.2 D.C. Reserve Fund Application Section 35 of the D.C.A. states that: "The money in a reserve fund established for a service may be spent only for capital costs determined under paragraphs 2 to 7 of subsection 5 (1)." This provision clearly establishes that reserve funds collected for a specific service are only to be used for that service, or to be used as a source of interim financing of capital undertakings for which a D.C. may be spent. Watson & Associates Economists Ltd. PAGE D-5 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Figure D-1 Township of Oro-Medonte Annual Treasurer's Statement of Development Charge Reserve Funds Services to which the Development Charge Relates Description Services Related to a Highway Water Services Fire Protection Services Parks and Recreation Services Provincial Offences Act (By- Law Enforcement) Growth Studies Opening Balance, January 1, ________ 0 Plus: Development Charge Collections 0 Accrued Interest 0 Repayment of Monies Borrowed from Fund and Associated Interest1 0 Sub-Total 0 0 0 0 0 0 0 Less: Amount Transferred to Capital (or Other) Funds2 0 Amounts Refunded 0 Amounts Loaned to Other D.C. Service Category for Interim Financing 0 Credits3 0 Sub-Total 0 0 0 0 0 0 0 Closing Balance, December 31, ________ 0 0 0 0 0 0 0 1 Source of funds used to repay the D.C. reserve fund 2 See Attachment 1 for details 3 See Attachment 2 for details The Municipality is compliant with s.s. 59.1 (1) of the Development Charges Act , whereby charges are not directly or indirectly imposed on development nor has a requirement to construct a service related to development been imposed, except as permitted by the Development Charges Act or another Act. Total Watson & Associates Economists Ltd. PAGE D-6 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Figure D-2a Township of Oro-Medonte Attachment 1 Annual Treasurer's Statement of Development Charge Reserve Funds Amount Transferred to Capital (or Other) Funds - Capital Fund Transactions D.C. Recoverable Cost Share Non-D.C. Recoverable Cost Share D.C. Forecast Period Post D.C. Forecast Period Capital Fund Transactions Gross Capital Cost D.C. Reserve Fund Draw D.C. Debt Financing Grants, Subsidies Other Contributions Post-Period Benefit/ Capacity Interim Financing Grants, Subsidies Other Contributions Other Reserve/Reser ve Fund Draws Tax Supported Operating Fund Contributions Rate Supported Operating Fund Contributions Debt Financing Grants, Subsidies Other Contributions Services Related to a Highway Capital Cost A Capital Cost B Capital Cost C Sub-Total - Services Related to Highways $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Water Capital Cost D Capita Cost E Capital Cost F Sub-Total - Water $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Watson & Associates Economists Ltd. PAGE D-7 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Figure D-2b Township of Oro-Medonte Attachment 1 Annual Treasurer's Statement of Development Charge Reserve Funds Amount Transferred to Capital (or Other) Funds - Operating Fund Transactions D.C. Reserve Fund Draw Post D.C. Forecast Period Non-D.C. Recoverable Cost Share Operating Fund Transactions Principal Interest Principal Interest Source Principal Interest Source Services Related to a Highway Capital Cost J Capita Cost K Capital Cost L Sub-Total - Services Related to a Highway $0 $0 $0 $0 $0 $0 $0 Water Capital Cost M Capita Cost N Capital Cost O Sub-Total - Water $0 $0 $0 $0 $0 $0 $0 Annual Debt Repayment Amount Watson & Associates Economists Ltd. PAGE D-8 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Figure D-3 Township of Oro-Medonte Attachment 2 Annual Treasurer's Statement of Development Charge Reserve Funds Statement of Credit Holder Transactions Credit Holder Applicable D.C. Reserve Fund Credit Balance Outstanding Beginning of Year ________ Additional Credits Granted During Year Credits Used by Holder During Year Credit Balance Outstanding End of Year ________ Credit Holder A Credit Holder B Credit Holder C Credit Holder D Credit Holder E Credit Holder F Watson & Associates Economists Ltd. PAGE D-9 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Figure D-4 Township of Oro-Medonte Attachment 3 Annual Treasurer's Statement of Development Charge Reserve Funds Statement of Reserve Fund Balance Allocations Attachment 1 Township of Oro-Medonte Statement of Reserve Fund Balance Allocations Service: Water Balance in Reserve Fund at Beginning of Year: 60% of Balance to be Allocated (at a minimum): Projects to Which Funds Will be Allocated Project Description Project Number Total Growth-related Capital Cost Remaining to be Funded Share of Growth-related Cost Allocated to Date Share of Growth-related Cost Allocated - Current Year Total $0 $0 $0 Service: Services Related to a Highway Balance in Reserve Fund at Beginning of Year: 60% of Balance to be Allocated (at a minimum): Projects to Which Funds Will be Allocated Project Description Project Number Total Growth-related Capital Cost Remaining to be Funded Share of Growth-related Cost Allocated to Date Share of Growth-related Cost Allocated - Current Year Total $0 $0 $0 Watson & Associates Economists Ltd. PAGE E-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Appendix E Local Service Policy Watson & Associates Economists Ltd. PAGE E-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Appendix E: Local Service Policy Township of Oro-Medonte This Appendix sets out the Township's General Policy Guidelines on Development Charges (D.C.) and local service funding for Services Related to a Highway, Stormwater Management, Parkland Development and amenities, and Underground Linear Services. The guidelines outline, in general terms, the nature of engineered infrastructure that is included in the study as a development charge project, versus infrastructure that is considered as a local service, to be emplaced separately by landowners, pursuant to a development agreement. The following policy guidelines are general principles by which staff will be guided in considering development applications. However, each application will be considered, in the context of these policy guidelines as subsection 59(2) of the Development Charges Act, 1997, on its own merits having regard to, among other factors, the nature, type and location of the development and any existing and proposed development in the surrounding area, as well as the location and type of services required and their relationship to the proposed development and to existing and proposed development in the area. Please refer to the Township's Development Engineering Policies, Process and Design Standards document available on the Township's website for specific details. Services Related to a Highway A highway and services related to a highway are intended for the transportation of people and goods via many different modes including, but not limited to passenger automobiles, commercial vehicles, transit vehicles, bicycles and pedestrians. The highway shall consist of all land and associated infrastructure built to support (or service) this movement of people and goods regardless of the mode of transportation employed, thereby achieving a complete street. A complete street is the concept whereby a highway is planned, designed, operated and maintained to enable pedestrians, cyclists, public transit users and motorists to safely and comfortably be moved, thereby allowing for the efficient movement of persons and goods. The associated infrastructure to achieve this concept shall include, but is not limited to: road pavement structure and curbs; grade separation/bridge structures (for any Watson & Associates Economists Ltd. PAGE E-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx vehicles, railways and/or pedestrians); grading, drainage and retaining wall features; culvert structures; storm water drainage systems; utilities; traffic control systems; signage; gateway features; street furniture; active transportation facilities (e.g. sidewalks, bike lanes, multi-use trails which interconnect the transportation network, etc.); roadway illumination systems; boulevard and median surfaces (e.g. sod & topsoil, paving, etc.); street trees and landscaping; parking lanes & lay-bys; (excluding on-street parking in the downtown) and driveway entrances; noise attenuation systems; railings and safety barriers. Local and Collector Roads (including land) a. Collector Roads Internal to Development, inclusive of all land and associated infrastructure - direct developer responsibility under s.59 of the D.C.A. as a local service. b. Collector Roads External to Development, inclusive of all land and associated infrastructure - if needed to support a specific development or required to link with the area to which the plan relates, direct developer responsibility under s.59 of the D.C.A.; otherwise, included in D.C. calculation to the extent permitted under s.5(1) of the D.C.A. (dependent on local circumstances). c. All local roads are considered to be the developer's responsibility. Arterial Roads a. New, widened, extended or upgraded arterial roads, inclusive of all associated infrastructure: Included as part of road costing funded through D.C.A., s.5(1). b. Land acquisition for arterial roads on existing rights-of-way to achieve a complete street: dedication under the Planning Act provisions (s. 41, 51 and s. 53) through development lands; in area with limited development: included in D.C.'s. c. Land acquisition for arterial roads on new rights-of-way to achieve a complete street: dedication, where possible, under the Planning Act provisions (s. 51 and s. 53) through development lands up to the ROW specified in the Official Plan or other municipal documents. d. Land acquisition beyond normal dedication requirements to achieve transportation corridors as services related to highways including grade Watson & Associates Economists Ltd. PAGE E-4 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx separation infrastructure for the movement of pedestrians, cyclists, public transit and/or railway vehicles: included in D.C.'s. Traffic Control Systems, Signals and Intersection Improvements a. On new arterial roads and arterial road improvements unrelated to a specific development: included as part of road costing funded through D.C.'s. b. On non-arterial roads, or for any private site entrances or entrances to specific development: direct developer responsibility under s.59 of D.C.A. (as a local service). c. On arterial or collector road intersections with County roads: include in D.C.'s to the extent they are Township responsibility, or in certain circumstances, may be a direct developer responsibility. d. Intersection improvements, new or modified signalization, signal timing & optimization plans, area traffic studies for highways attributed to growth and unrelated to a specific development: included in D.C. calculation as permitted under s.5(1) of the D.C.A. Streetlights a. Streetlights on new arterial roads and arterial road improvements: considered part of the complete street and included as part of the road costing funded through D.C.'s or in exceptional circumstances, may be direct developer responsibility through local service provisions (s.59 of D.C.A.). b. Streetlights on non-arterial roads internal to development: considered part of the complete street and included as a direct developer responsibility under s. 59 of the D.C.A. (as a local service). c. Streetlights on non-arterial roads external to development, needed to support a specific development or required to link with the area to which the plan relates: considered part of the complete street and included as a direct developer responsibility under s. 59 of the D.C.A. (as a local service). Watson & Associates Economists Ltd. PAGE E-5 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Transportation Related Pedestrian and Cycling Facilities a. Sidewalks, multi-use trails, cycle tracks, and bike lanes, inclusive of all required infrastructure, located within arterial roads, County roads and provincial highway corridors: considered part of the complete street and included in D.C.'s, or, in exceptional circumstances, may be direct developer responsibility through local service provisions (s.59 of D.C.A.). b. Sidewalks, multi-use trails, cycle tracks, and bike lanes, inclusive of all required infrastructure, located within or linking to non-arterial road corridors internal to development: considered part of the complete street, direct developer responsibility under s.59 of D.C.A. (as a local service). c. Other sidewalks, multi-use trails, cycle tracks, and bike lanes, inclusive of all required infrastructure, located within non-arterial road corridors external to development and needed to support a specific development or required to link with the area to which the plan relates: direct developer responsibility under s.59 of D.C.A. (as a local service). d. Multi-use trails (not associated with a road), inclusive of all land and required infrastructure, that go beyond the function of a (parkland) recreational trail and form part of the municipality's active transportation network for cycling and/or walking: included in D.C.'s. Noise Abatement Measures a. Noise abatement measures external and internal to development where it is related to, or a requirement of a specific development: direct developer responsibility under s.59 of D.C.A. (as a local service). b. Noise abatement measures on new arterial roads and arterial road improvements abutting an existing community and unrelated to a specific development: included as part of road costing funded through D.C.'s. Stormwater Management a. Stormwater facilities for quality and/or quantity management, including downstream erosion works, inclusive of land and all associated infrastructure, Watson & Associates Economists Ltd. PAGE E-6 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx such as landscaping and perimeter fencing: direct developer responsibility under s.59 of D.C.A. (as a local service). b. Over-sizing cost of stormwater facilities capacity, excluding land, to accommodate runoff from new, widened, extended or upgraded municipal arterial roads that are funded as a development charges project: included as part of road costing funded through D.C.'s. c. Erosion works, inclusive of all restoration requirements, related to a development application: direct developer responsibility under s. 59 of the D.C.A. (as a local service). d. Monitoring works: included in D.C.'s consistent with the D.C.A., s.5(1). e. Storm sewer systems and drainage works that are required for a specific development, either internal or external to the area to which the plan relates: direct developer responsibility under s. 59 of the D.C.A. (as a local service). f. Note: refer to the Township's Development Engineering Policies, Process and Design Standards document available on the Township's website for specific details. Parkland Development Recreational Trails a. Recreational trails (Multi-use trails) that do not form part of the municipality's active transportation network, and their associated infrastructure (landscaping, bridges, trail surface, etc.), is included in area municipal parkland D.C.'s. Parkland a. Parkland Development for Community Parks, District Parks, Neighbourhood Parks and Village Squares: direct developer responsibility to provide underground services if required (stormwater, water, sanitary sewers), electrical connections, grading, maintenance, and a parkland development plan, as defined in the Township's Development Engineering Policies, Process and Design Standards document available on the Township's website. Watson & Associates Economists Ltd. PAGE E-7 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx b. Program facilities, amenities, and furniture, within parkland: are included in D.C.'s or, in exceptional circumstances, may be direct developer responsibility through local service provisions (s.59 of D.C.A.) as defined in the Township's Development Engineering Policies, Process and Design Standards document. Landscape Buffer Blocks, Features, Cul-de-sac Islands, Berms, Grade Transition Areas, Walkway Connections to Adjacent Arterial Roads, Open Space, Etc. The cost of developing all landscape buffer blocks, landscape features, cul-de- sac islands, berms, grade transition areas, walkway connections to adjacent arterial roads, open space and other remnant pieces of land conveyed to the municipality shall be a direct developer responsibility as a local service. Such costs include but are not limited to: - pre-grading, sodding or seeding, supply and installation of amended topsoil, (to the Municipality's required depth), landscape features, perimeter fencing and amenities and all planting. - Perimeter fencing to the Municipal standard located on the public property side of the property line adjacent land uses (such as but limited to arterial roads) as directed by the Municipality. Natural Heritage System (N.H.S.) N.H.S. includes engineered and in situ stream corridors, natural buffers for woodlots, wetland remnants, etc. as well as subwatersheds within the boundaries of the Municipality. Direct developer responsibility as a local service provision including but not limited to the following: a. Riparian planting and landscaping requirements (as required by the Municipality, Conservation Authority or other authorities having jurisdiction) as a result of creation of, or construction within in the N.H.S. and associated buffers. b. Perimeter fencing of the N.H.S. to the Municipal standard located on the public property side of the property line adjacent land uses (residential, industrial, commercial) as required by the Municipality. Watson & Associates Economists Ltd. PAGE E-8 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx c. All works to be in conformance with the Municipality's "Restoration Framework" for stream corridors, natural buffers and subwatersheds areas as directed by the approved studies and reports related to the Secondary Plan that development occurs in. Infrastructure Assets Constructed by Developers a. All infrastructure assets constructed by Developers must be designed in accordance with the Township's Development Engineering Policies, Process and Design Standards. b. All infrastructure assets shall be conveyed in accordance with the Township's Development Engineering Policies, Process and Design Standards. c. Any Parks and Open Space infrastructure assets approved to be built by the developer on behalf of the Municipality shall be in accordance with the Township's Development Engineering Policies, Process and Design Standards. Underground Services (Stormwater, Water and Sanitary Sewers) Underground services (linear infrastructure for stormwater, water, and sanitary services) within the road allowance are not included in the cost of road infrastructure and are treated separately. The responsibility for such services as well as stormwater management ponds and pumping stations, which are undertaken as part of new developments or redevelopments, will be determined by the following principles: As further defined in the Township's Development Engineering Policies, Process and Design Standards document available on the Township's website, the costs of the following items shall be direct developer responsibilities as a local service: a. providing all underground services internal to the development, including storm, water and sanitary services; b. providing service connections from existing underground services to the development; Watson & Associates Economists Ltd. PAGE E-9 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx c. providing new underground services or upgrading existing underground services external to the development if the services are required to service the development; if external services are required by two or more developments, the developer for the first development will be responsible for the cost of the external services and may enter into front-ending/cost-sharing agreements with other developers independent of the Municipality; d. providing stormwater management ponds and other facilities required by the development including all associated features such as landscaping and fencing; and e. water booster pumping stations, reservoir pumping stations and/or sanitary pumping stations serving individual developments; The costs of the following items shall be paid through development charges: a. water, reservoir and/or sanitary pumping stations not required for the individual development; b. water treatment, storage facilities, transmission mains, re-chlorination/sampling stations and Wells associated with municipal service areas; and c. wastewater treatment plants and transmission mains associated with municipal service areas. Watson & Associates Economists Ltd. PAGE F-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Appendix F Asset Management Plan Watson & Associates Economists Ltd. PAGE F-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Appendix F: Asset Management Plan The recent changes to the Development Charges Act, 1997, as amended (D.C.A.) (new subsection 10 (2) (c.2)) require that the background study must include an asset management plan (A.M.P.) related to new infrastructure. Section 10 (3) of the D.C.A. provides: "The asset management plan shall, (a) deal with all assets whose capital costs are proposed to be funded under the development charge by-law; (b) demonstrate that all the assets mentioned in clause (a) are financially sustainable over their full life cycle; (c) contain any other information that is prescribed; and (d) be prepared in the prescribed manner." In regard to the above, section 8 of the regulations was amended to include subsections (2), (3), and (4) which set out specific detailed requirements for transit (only). For all services except transit, there are no prescribed requirements at this time, thus requiring the municipality to define the approach to include in the background study. At a broad level, the A.M.P. provides for the long-term investment in an asset over its entire useful life along with the funding. The schematic below identifies the costs for an asset throughout its entire lifecycle. For growth-related works, the majority of capital costs will be funded by the D.C. Non-growth-related expenditures will then be funded from non-D.C. revenues as noted below. During the useful life of the asset, there will be minor maintenance costs to extend the life of the asset along with additional program- related expenditures to provide the full services to the residents. At the end of the life of the asset, it will be replaced by non-D.C. financing sources. It should be noted that with the recent passing of the Infrastructure for Jobs and Prosperity Act (I.J.P.A.) municipalities are now required to complete A.M.P.s, based on certain criteria, which are to be completed by 2022 for core municipal services and 2024 for all other services. The amendments to the D.C.A. do not require municipalities to complete these A.M.P.s (required under I.J.P.A.) for the D.C. background study, rather the D.C.A. requires that the D.C. background study include information to show the assets to be funded by the D.C. are sustainable over their full lifecycle. Watson & Associates Economists Ltd. PAGE F-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Purchase Install Commission Operate Maintain Monitor (Throughout Life of Assets) (To End of Useful Life) Removal/Decommission Disposal New Assets Replacement Assets Reserves/Reserve Funds Debentures User Fees Grants Other Proceeds on Disposal Funding of Disposal / Decommissioning Costs Operating Budget Financing Methods Purchase Install Commission Operate Maintain Monitor (Throughout Life of Assets) (To End of Useful Life) Removal/Decommission Disposal In 2012, the Province developed Building Together: Guide for municipal asset management plans which outlines the key elements for an A.M.P., as follows: State of local infrastructure: asset types, quantities, age, condition, financial accounting valuation and replacement cost valuation. Desired levels of service: defines levels of service through performance measures and discusses any external trends or issues that may affect expected levels of service or the municipality's ability to meet them (for example, new accessibility standards, climate change impacts). Asset management strategy: the asset management strategy is the set of planned actions that will seek to generate the desired levels of service in a sustainable way, while managing risk, at the lowest lifecycle cost. Financing strategy: having a financial plan is critical for putting an A.M.P. into action. By having a strong financial plan, municipalities can also demonstrate that they have Watson & Associates Economists Ltd. PAGE F-4 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx made a concerted effort to integrate the A.M.P. with financial planning and municipal budgeting and are making full use of all available infrastructure financing tools. Commensurate with the above, the Township prepared an A.M.P. in 2022 for its existing assets; however, it did not take into account future growth-related assets for all services included in the D.C. calculations. As a result, the asset management requirement for the D.C. must be undertaken in the absence of this information. In recognition to the schematic above, the following table (presented in 2024 $) has been developed to provide the annualized expenditures and revenues associated with new growth. Note that the D.C.A. does not require an analysis of the non-D.C. capital needs or their associated operating costs so these are omitted from the table below. As well, as all capital costs included in the D.C.-eligible capital costs are not included in the Township's A.M.P.s, the present infrastructure gap and associated funding plan have not been considered at this time. Hence the following does not represent a fiscal impact assessment (including future tax/rate increases) but provides insight into the potential affordability of the new assets: 1. The non-D.C. recoverable portion of the projects that will require financing from municipal financial resources (i.e., taxation, rates, fees, etc.). This amount has been presented on an annual debt charge amount based on 20-year financing. 2. Lifecycle costs for the 2024 D.C. capital works have been presented based on a sinking fund basis. The assets have been considered over their estimated useful lives. 3. Incremental operating costs for the D.C. services (only) have been included. 4. The resultant total annualized expenditures are approximately $6.72 million. 5. Consideration was given to the potential new taxation and user fee revenues which will be generated as a result of new growth. These revenues will be available to finance the expenditures above. The new operating revenues are approximately $4.94 million. This amount, totaled with the existing operating revenues of approximately $36.75 million, provides annual revenues of approximately $41.69 million by the end of the period. Watson & Associates Economists Ltd. PAGE F-5 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 6. In consideration of the above, the capital plan is deemed to be financially sustainable. Township of Oro-Medonte Asset Management - Future Expenditures and Associated Revenues 2024$ Description Total Expenditures (Annualized) Annual Debt Payment on Non-Growth Related Capital1 3,193 Annual Debt Payment on Post Period Capital2 1,313,883 Sub-Total - Annual Lifecycle $2,331,844 Incremental Operating Costs (for D.C. Services) $3,069,320 Total Expenditures $6,718,241 Revenue (Annualized) Total Existing Revenue3 $36,751,620 Incremental Tax and Non-Tax Revenue (User Fees, Fines, Licences, etc.) $4,936,305 Total Revenues $41,687,925 3 As per Sch. 10 of FIR 1 Non-Growth Related component of Projects 2 Interim Debt Financing for Post Period Benefit Watson & Associates Economists Ltd. PAGE G-1 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Appendix G Proposed D.C. By-law Watson & Associates Economists Ltd. PAGE G-2 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx Appendix G: Proposed D.C. By-law The Corporation of the Township of Oro-Medonte By-Law No. 2024-XX A By-Law for the Imposition of Development Charges and Repeal By-Law No. 2019-100 Whereas the Development Charges Act, 1997c. 27 (hereinafter called "the Act") provides that the council of a municipality may by by-law impose development charges against land to pay for increased capital costs required because of increased need for services arising from development of the area to which the By-law applies; And Whereas a development charges background study entitled "Township of Oro- Medonte 2024 Development Charges Background Study" (the "Study") prepared by Watson & Associates Economists Ltd. ("Watson"), and dated August 23, 2024, as amended has been completed in support of the imposition of the development charges; And Whereas the Study and the proposed development charges by-law were made available to the public, the Council of the Corporation of the Township of Oro-Medonte (the "Council") gave notice to the public, and held a public meeting through its Committee of the Whole on September 11, 2024 pursuant to section 12 of the Act and the regulations thereto, and Council at its Council Meeting received written submissions and heard comments and representations from all persons who asked to be heard; Now Therefore the Council of The Township of Oro-Medonte enacts as follows: 1.0 Definitions 1.1 In this by-law, "Act" means the Development Charges Act, S.O. 1997, c. 27, as amended, or any successor thereto; "Accessory use" means where used to describe a use, building, or structure, that the use, building or structure is naturally and normally incidental, subordinate in purpose of floor area or both, and exclusively devoted to a principal use, building or structure; "Affordable Residential Unit" means a Dwelling Unit that meets the criteria set out in subsection 4.1 (2) or 4.1(3) of the Act; "Agricultural Use" means lands, buildings or structures, excluding any portion thereof used as a dwelling unit or for a commercial use, used or designed or intended for use for the purpose of a bona fide farming operation including, but not limited to, animal husbandry, dairying, livestock, fallow, field crops, removal of sod, forestry, fruit farming, greenhouses, horticulture, market gardening, pasturage, poultry keeping, and equestrian facilities; "Apartment unit" means any residential dwelling unit within a building containing three or more dwelling units where access to each residential unit is obtained Watson & Associates Economists Ltd. PAGE G-3 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx through a common entrance or entrances from the street level and the residential units are connected by an interior corridor, and includes a stacked townhouse; "Attainable Residential Unit" means a Dwelling Unit that meets the criteria set out in subsection 4.1(4) of the Act; "Back-to-back townhouse" means a building containing four or more dwelling units separated vertically by a common wall, including a rear common wall, that do not have rear yards; "Bedroom" means a habitable room larger than seven square metres, including a den, loft, study, or other similar area, but does not include a living room, dining room or kitchen; "Benefitting area" means an are defined by a map, plan or legal description in a front-ending agreement as an area that will receive a benefit from the construction of a service; "Board of education" means a board defined in subsection 1(1) of the Education Act, R.S.O. 1990 c. E.2, as amended, or any successor thereto; "Building Code Act" means the Building Code Act, R.S.O. 1992, c.23, as amended, and all Regulations thereto including the Ontario Building Code, 2006, as amended, or any successor thereto; "Cannabis" means cannabis as defined in the Cannabis Act, SC 2018 c.16, as amended, or any successor thereto; "Cannabis facilities" means a building used, designed or intended for growth, producing, testing, destroying, storing or distribution, excluding retail sales, of medical marijuana or cannabis authorized by a license issued by the federal Minister of Health pursuant to section 25 of the Marihuana for Medical Purposes Regulations, SOR/2013-119, under the Controlled Drugs and Substances Act, S.C. 1996, c.19; "Capital cost" shall have the same meaning as described in Section 5 of the Development Charges Act, 1997, as amended; "Class" means a grouping of services combined to create a single service for the purposes of this by-law and as provided in section 7 of the Act; "Commercial" means any non-residential development not defined under "institutional" or "industrial"; "Council" means the Council of The Corporation of the Township of Oro-Medonte; "Development" means the construction, erection or placing of one or more buildings or structures on land or the making of an addition or alteration to a building or structure that has the effect of increasing the size or usability thereof, and includes redevelopment; "Development charge" means a charge imposed pursuant to this Bylaw; Watson & Associates Economists Ltd. PAGE G-4 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx "Dwelling unit" means any part of a building or structure used, designed or intended to be used as a domestic establishment in which one or more persons may sleep and are provided with culinary and sanitary facilities for their exclusive use; "Existing building" means a building or buildings existing on a site in the Township of Oro-Medonte on the day this by-law comes into effect or the first building or buildings constructed and occupied on a vacant site pursuant to site plan approval under section 41 of the Planning Act, R.S.O. 1990 c. P.13, as amended, (the "Planning Act") subsequent to this by-law coming into effect for which full development charges were paid; "Farm Building" means a building or structure actually used as part of or in connection with a bona fide farming operation and includes barns, silos and other buildings or structures ancillary to a bona fide farming operation, but excluding a residential use and cannabis facilities; "Grade" means the average level of finished ground adjoining a building or structure at all exterior walls; "Gross floor area" means the total floor area of all floors above grade of a dwelling unit measured between the outside surfaces of exterior walls or between the outside surfaces of exterior walls and the centre line of party walls dividing the dwelling unit from other dwelling units or other portion of a building; In the case of a non-residential building or structure, or in the case of a mixed-use building or structure in respect of the non-residential portion thereof, the total area of all building floors above or below grade measured between the outside surfaces of the exterior walls, or between the outside surfaces of exterior walls and the centre line of party walls dividing a non- residential use and a residential use, except for any of the following: (i) A room or enclosed area within the building or structure above or below grade that is used exclusively for the accommodation of heating, cooling, ventilating, electrical, mechanical or telecommunications equipment that services the building; (ii) Loading facilities above or below grade; (iii) A part of the building or structure below grade that is used for the parking of motor vehicles or for storage or other accessory use; "Industrial" means lands, buildings or structures used or designed or intended for (i) the manufacturing, fabricating, production, compounding, processing, packaging, crating, bottling, packing or assembling of raw or semi-processed goods or materials, and includes warehousing related to the manufacturing use carried on in the building or buildings; (ii) research or development in connection with manufacturing; Watson & Associates Economists Ltd. PAGE G-5 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx (iii) retail sales by a manufacturer, if the retail sales are at the site where the manufacturing is carried out, such retail sales are restricted to goods manufactured at the site, and the building or part of a building where such retail sales are carried out does not constitute greater than twenty-five percent of the total gross floor area of the building or buildings on the site; or (iv) office or administrative purposes, if they are, (1) carried out with respect to manufacturing or warehousing; and (2) in or attached to the building or structure used for such manufacturing or warehousing; (v) cannabis facilities. but does not include the sale of commodities to the general public through a warehouse club or a self-storage facility; "Institutional" means development of a building or structure that meets the criteria set out in section 11.1(2) of O.Reg. 82/98 to the Act; "Interest rate" means the maximum interest rate that a municipality may charge as set out in section 26.3 of the Act; "Local board" has the same definition as defined in the Development Charges Act, S.O. 1997 c.27, as amended; "Local services" means those services, facilities or things which are under the jurisdiction of the municipality and are related to a plan of subdivision or within the area to which the plan relates in respect of the lands under Sections 41,51 or 53 of the Planning Act R.S.O. 1990, c. P.13, as amended or any successor thereto; "Mobile home" means any dwelling that is designed to be made mobile, and constructed or manufactured to provide a permanent residence for one or more persons, but does not include a recreational vehicle, travel trailer, tent trailer, or trailer otherwise designed; "Multiple dwelling" means all dwellings other than single detached dwellings, semi-detached dwellings, and apartment dwellings but includes a back-to-back townhouse; "Municipality" means The Corporation of the Township of Oro-Medonte; "Non-profit housing" means Development of a building or structure that meets the criteria set out in section 4.2 of the Act; "Non-residential use" means a building or structure of any kind whatsoever used, designed or intended to be used for other than a residential use and includes all commercial, industrial and institutional uses; Watson & Associates Economists Ltd. PAGE G-6 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx "Owner" means the owner of land or a person who has made application for an approval for the development of land upon which a development charge is imposed; "Place of Worship" means a building or structure that is used primarily for worship and religious practices and purposes, including related administrative, teaching, assembly and associated spaces, and exempt from taxation as a place of worship pursuant to paragraph 3 of section 3 of the Assessment Act, R.S.O. 1990, c. A.31. This does not include portions of such building or structure used for any commercial use, including but not limited to daycare facilities; "Regulation" means O. Reg. 82/98, as amended or any successor thereto, made under the Act; "Rental housing" means development of a building or structure with four or more dwelling units all of which are intended for use as rented residential premises; "Residential use" means lands, buildings or structures of any kind whatsoever used, designed or intended to be used as living accommodations for one or more individuals; "Semi-detached dwelling" means a dwelling unit in a residential building consisting of two dwelling units having one vertical wall or one horizontal wall, but no other parts, attached or another dwelling unit where the residential units are not connected by an interior corridor; "Services" (or "service") means those services set out in Schedule "B" to this By-law; "Servicing agreement" means an agreement between a landowner and the municipality relative to the provision of municipal services to specified lands within the municipality; "Single detached dwelling unit" means a residential building consisting of one dwelling unit and not attached to another structure and includes mobile homes; "Special care facilities" means lands, buildings or structures used or designed or intended for uses for the purpose of providing supervision, nursing care or medical treatment, which do not comprise dwelling units, that are licensed, approved or supervised under any special or general statute, and excludes the special care/special dwelling portions of the building; "Special care/special dwelling" means a residential portion of special care facilities containing rooms or suites of rooms designed or intended to be used for sleeping and living accommodation that have a common entrance from street level: i. Where the occupants have the right to use in common, halls, stairs, yards, common rooms and accessory buildings; ii. Which may or may not have exclusive sanitary and/or culinary facilities; Watson & Associates Economists Ltd. PAGE G-7 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx iii. That is designed to accommodate persons with specific needs, including, but not limited to, independent permanent living arrangements; and iv. Where support services such as meal preparation, grocery shopping, laundry, housekeeping, nursing, respite care and attendant services may be provided at various levels. "Stacked townhouse dwelling" means a building containing two or more dwelling units where each dwelling unit is separated horizontally and/or vertically from another dwelling unit by a common wall or floor. 2.0 Designation of Services/Classes of Services 2.1 The categories of Services/Classes of Services for which development charges are imposed under this by-law are as follows: (a) Services Related to a Highway (b) Fire Protection Services (c) Parks and Recreation Services (d) Provincial Offences Act (e) Growth Studies (f) Water Services 2.2 Components of the Services/Classes of Services designated in Subsection 2.1 are described in Schedule "A". 3.0 Application of By-Law Rules 3.1 Development charges shall be payable in the amounts set out in this by-law where: a) the lands are located in the area described in Subsection 3.2; and b) the development of the lands requires any of the approvals set out in Subsection 3.4 a). Area to Which By-Law Applies 3.2 Subject to Subsection 3.3, this by-law applies to all lands in the geographic area of the Township. Exemptions 3.3 This by-law shall not apply to lands that are owned by and used for the purposes of: a) any Municipality or a "local board" thereof; b) a "Board of Education"; Watson & Associates Economists Ltd. PAGE G-8 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx c) an enlargement of the gross floor area of an existing industrial building in accordance with Section 4 of the Act; d) the issuance of a building permit in accordance with Section 2(3) of the Act; e) farm buildings as defined herein; f) a place of worship exempt under Section 3 of the Assessment Act; g) a public hospital under the Public Hospitals Act; h) Affordable Residential Units required pursuant to section 34 and 16(4) of the Planning Act (Inclusionary Zoning); i) Affordable Residential Units as per Section 4.1 of the Act; j) Attainable Residential Units as per Section 4.1 of the Act; k) Non-profit residential developments as per Section 4.2 of the Act; l) Notwithstanding any other provision of this By-law, the Development Charges payable for Residential Developments, where the Dwelling Units are intended as Rental Housing, will be reduced based on the number of bedrooms in each Dwelling Unit in accordance with section 26.2(1.1) of the Development Charges Act, as follows: i. Three (3) or more Bedrooms - 25% reduction; ii. Two (2) Bedrooms - 20% reduction; and iii. Fewer than two (2) Bedrooms - 15% reduction. Approvals for Development 3.4 a) Development charges shall be imposed on all lands, buildings or structures that are developed for residential or non-residential uses if the development requires, (i) the passing of a zoning by-law or an amendment to a zoning by-law under Section 34 of the Planning Act; (ii) the approval of a minor variance under Section 45 of the Planning Act; (iii) a conveyance of land to which a by-law passed under Subsection 50(7) of the Planning Act applies; (iv) the approval of a plan of subdivision under Section 51 of the Planning Act, (v) a consent under Section 53 of the Planning Act, (vi) the approval of a description under Section 9 of the Condominium Act, 1998, S.O. 1998, c.19; or Watson & Associates Economists Ltd. PAGE G-9 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx (vii) the issuing of a permit under the Building Code Act, in relation to a building or structure. b) No more than one development charge for each service designated in Subsection 2.1 shall be imposed upon any lands, buildings or structures to which this by-law applies even though two or more of the actions described in Subsection 3.4(a) are required before the lands, buildings or structures can be developed. c) Despite Subsection 3.4(b), if two or more of the actions described in Subsection 3.4(a) occur at different times, additional development charges shall be imposed if the subsequent action has the effect of increasing the need for services. Rules with Respect to an Industrial Expansion Exemption: 3.5.1 As set out in Section 4 of the Act, if a development includes the enlargement of the gross floor area of an existing industrial building, the amount of the development charge that is payable in respect of the enlargement is determined as follows: (i) the exemption for industrial enlargement provided for in this subsection shall apply only to the enlargement of the gross floor area of an existing industrial building; for this subsection, an "existing industrial building" shall have the same meaning as defined in O. Reg. 82/98 under the Act, as amended or successor thereto, and at the time of application for a building permit, shall have fifty (50) per cent or more of its gross floor area occupied by industrial uses; (ii) such enlargement must be attached to, or within, the existing industrial building, but shall not be attached by means only of a tunnel, bridge, passageway, shared below grade connection, foundation, footing, shared connected roof or parking facility; (iii) both the enlargement and existing industrial building must be constructed on lands owned by the same beneficial owner; (iv) the enlargement shall be for a use to, or in connection with, an industrial purpose as set out in this By-law on lands owned by the same beneficial owner; (v) the enlargement shall be to the exclusive use of an existing occupant whose occupancy equals fifty (50) percent or more of the total gross floor area of the existing structure immediately prior to the issuance of the subject expansion building permit; (vi) for the purposes of the calculation of the applicable development charge, the gross floor area of an existing industrial building shall be calculated as it existed prior to the first enlargement in respect of that building for which an exemption under section 4 of the Act is sought; Watson & Associates Economists Ltd. PAGE G-10 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx (vii) for the purposes of the calculation of the applicable development charge, the enlargement shall be measured to also include all prior enlargements from the existing industrial building; (viii) if the area of the enlargement is fifty (50) per cent or less than the existing gross floor area determined in clause 3.5.1(vii) above, the amount of the development charge in respect of the enlargement is zero (0) dollars; and (ix) if the area of the enlargement as determined in clause 3.5.1(vii) above is more than fifty (50) per cent of the existing gross floor area, the amount of the development charge in respect of the enlargement is the amount of the development charge that would otherwise be payable, less that portion related to any gross floor area of the enlargement which is required to bring the cumulative amount of enlargements to fifty (50) percent. Rules with Respect to Exemptions for Intensification of Existing or New Housing in Accordance with Section 2 of the Act: 3.5.2 Notwithstanding any other provision of this By-law, Development Charges shall not be imposed with respect to: (a) an enlargement to an existing Dwelling Unit; (b) the creation of additional Dwelling Units equal to the greater of one (1) or 1% of the existing Dwelling Units in an existing Residential rental building containing four (4) or more Dwelling Units or prescribed ancillary structure to the existing Residential building; 3.5.3 Notwithstanding any other provision of this By-law, Development Charges shall not be imposed with respect to the creation of any of the following within existing Single Detached Dwellings, Semi-Detached Dwellings, Back-to-back Townhouse Dwellings or Stacked Townhouse Dwellings: (a) A second Dwelling Unit on a parcel of land on which Residential Use, other than ancillary Residential Use, is permitted, if all buildings and structures ancillary to the existing Residential structure cumulatively contain no more than one (1) Dwelling Unit. (b) A third Dwelling Unit on a parcel of land on which Residential Use, other than ancillary Residential Use, is permitted, if no building or structure ancillary to the existing Residential structure contains any Dwelling Units. (c) One Dwelling Unit on a parcel of urban Residential land, if the existing structure contains no more than two (2) Dwelling Units and no other building or structure ancillary to the existing Residential structure contains any Dwelling Units. 3.5.4 Notwithstanding any other provision of this By-law, Development Charges shall not be imposed with respect to the creation of any of the following in new Single Detached Dwellings, Semi-Detached Dwellings, Back-to-back Townhouse Dwellings or Stacked Townhouse Dwellings: Watson & Associates Economists Ltd. PAGE G-11 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx (a) A second Dwelling Unit on a parcel of land on which Residential Use, other than ancillary Residential Use, is permitted, if all buildings and structures ancillary to the new Residential structure cumulatively will contain no more than one (1) Dwelling Unit. (b) A third Dwelling Unit on a parcel of land on which Residential Use, other than ancillary Residential Use, is permitted, if no building or structure ancillary to the new Residential structure contains any Dwelling Units. (c) One (1) Dwelling Unit in a building or structure ancillary to a new Residential structure on a parcel of urban Residential land, if the new Residential structure contains no more than two (2) Dwelling Units and no other building or structure ancillary to the new Residential structure contains any Dwelling Units. Amount of Charges Residential 3.6 The development charges described in Schedules "B" to this by-law shall be imposed on residential uses of lands, buildings or structures, including a dwelling unit accessory to a non-residential use and, in the case of a mixed use building or structure, on the residential uses in the mixed use building or structure, according to the type of residential unit, and calculated with respect to each of the services according to the type of residential use. Non-Residential Uses 3.7 The development charges described in Schedules "B" to this by-law shall be imposed on non-residential uses of lands, buildings or structures, and, in the case of a mixed use building or structure, on the non-residential uses in the mixed use building or structure, and calculated with respect to each of the services according to the gross floor area of the non-residential use. Reduction of Development Charges Where Redevelopment 3.8.1 Despite any other provision of this by-law, where, as a result of the redevelopment of land, a building or structure existing on the same land within 60 months prior to the date of payment of development charges in regard to such redevelopment was, or is to be demolished, in whole or in part, or converted from one principal use to another principal use on the same land, in order to facilitate the redevelopment, the development charges otherwise payable with respect to such redevelopment shall be reduced by the following amounts: a) in the case of a residential building or structure, or in the case of a mixed- use building or structure, the residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable development charge under Subsection 3.6 and of this by-law by the number, according Watson & Associates Economists Ltd. PAGE G-12 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx to type, of dwelling units that have been or will be demolished or converted to another principal use; and b) in the case of a non-residential building or structure, or in the case of a mixed-use building or structure, the non-residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable development charge under subsection 3.7 of this By-law by the non residential gross floor area that has been or will be demolished, relocated from the lands, or converted to another principal use. Provided that such amounts shall not exceed, in total, the amount of the development charges otherwise payable with respect to the redevelopment. 3.8.2 Notwithstanding section 3.8.1, non-residential developments may submit a request to Council for an extension to the 60 month period described above, up to an additional 12 months. Timing of Calculation and Payment 3.9 Development charges shall be calculated and payable in full in money or by provision of services as may be agreed upon, or by credit granted by the Act, on the date that the first building permit is issued in relation to a building or structure on land to which a development charge applies, or in a manner or at a time otherwise lawfully agreed upon. 3.10 Where development charges apply to land in relation to which a building permit is required, the building permit shall not be issued until the development charge has been paid in full. 3.11 Notwithstanding subsections 3.9 and 3.10, an owner may enter into an agreement with the municipality to provide for the payment in full of a development charge before building permit issuance or later than the issuing of a building permit. 3.12 Notwithstanding subsections 3.9 and 3.10, development charges for rental housing and institutional developments are due and payable in 6 installments commencing with the first installment payable on the date of first occupancy certificate issued, and each subsequent installment, including interest (calculated in accordance with section 26.3 of the Act), payable on the anniversary date each year thereafter. 3.13 Where the development of land results from the approval of a site plan or zoning by-law amendment application received between January 1, 2020 and June 5, 2024, and the approval of the application occurred within 2 years of building permit issuance, the development charges under sections 3.6 and 3.7 of this by-law shall be calculated on the rates set out in Schedule "B" on the date of the receipt of a complete planning application, including interest. Where both planning applications apply development charges under sections 3.6 and 3.7 of this by-law, the calculations shall be based on the date of the later planning application as set out in Schedule "B'', including interest (calculated in accordance with section 26.3 of the Act). Watson & Associates Economists Ltd. PAGE G-13 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 3.14 Where the development of land results from the approval of a site plan or zoning by-law amendment application received on or after January 6, 2024, and the approval of the application occurred within 18-months of building permit issuance, the development charges under sections 3.6 and 3.7 of this by-law shall be calculated on the rates set out in Schedule "B" on the date of the receipt of a complete planning application, including interest. Where both planning applications apply development charges under sections 3.6 and 3.7 of this by-law, the calculations shall be based on the date of the later planning application as set out in Schedule "B'', including interest (calculated in accordance with section 26.3 of the Act). 4.0 Payment by Services 4.1 Despite the payments required under section 3.9, Council may, by agreement, give a credit towards a development charge in exchange for work that relates to a service for which a development charge is imposed under this by-law. No such credit shall exceed the total development charges payable. 5.0 Unpaid Development Charges 5.1 If development charges, or any part thereof, remain unpaid after the due date, the amount unpaid shall be added to the tax roll and shall be collected as taxes. If any unpaid development charges are collected as taxes in accordance with Section 38 of the Act, the monies so collected shall be credited to the appropriate development charge reserve fund. 6.0 Refunds and Corrections 6.1 Refunds or partial refunds of Development Charges that have been paid will be made without interest, including cases where a permit is cancelled and where the Township has made an error in the calculation of the Development Charges which resulted in an overpayment to the Township. Additional payment of Development Charges shall be made where there has been an error in the calculation of the Development Charges which resulted in an underpayment of Development Charges. The amount of the difference between the corrected amount of Development Charges payable and the Development Charges paid shall be payable on demand and unpaid amounts will be added to the tax roll for the property in accordance with section 32 of the Act. 7.0 Indexing 7.1 Development charges imposed pursuant to this by-law may be adjusted annually, without amendment to this by-law, commencing on January 1, 2025 and each January 1 annually thereafter, in accordance with the Act. The amount of the adjustment shall be determined by the annual change in Statistics Canada's Non- residential Billing Construction Price Index. Watson & Associates Economists Ltd. PAGE G-14 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx 8.0 Registration 8.1 A certified copy of this By-law may be registered on title to any land to which this By-law applies. 9.0 Severability 9.1 In the event any provisions, or part thereof, of this By-law is found, by a court of competent jurisdiction, to be ultra vires, such provisions, or part thereof, shall be deemed to be severed, and the remaining portion of such provision and all other provisions of the By-law shall remain in full force and effect. 10.0 Schedules 10.1 The following schedules to this by-law form an integral part thereof: Schedule "A" Components of Services/Classes of Services Designated in Subsection 2.1 Schedule "B" Residential and Non-Residential Development Charges 11.0 Date By-Law in Force 11.1 This by-law shall come into force upon passage. 12.0 Date By-Law Expires 12.1 This by-law will expire as of 10 years from the date of passage, unless it is repealed at an earlier date by a subsequent By-law. 13.0 Repeal 13.1 Upon the coming into force of this by-law, By-Law No. 2019-100 of the Township of Oro-Medonte is hereby repealed. By-Law Read a First, Second and Third time, and Passed this 23rd day of October, 2024. The Corporation of the Township of Oro-Medonte ________________________ Randy Greenlaw, Mayor ________________________ Janette Teeter, Deputy Clerk Watson & Associates Economists Ltd. PAGE G-15 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx SCHEDULE "A" SUMMARY OF DEVELOPMENT CHARGE SERVICES Township-Wide Services Services Related to a Highway: Roads and Related Public Works (Facilities and Fleet) Fire Protection Services: Facilities Vehicles and Equipment Small Equipment and Gear Parks and Recreation Services: Parkland Development Parkland Amenities Parkland Trails Recreation Facilities Parks and Recreation Vehicles and Equipment Library Services: Facilities Collection Materials Provincial Offences Act: Ambulance Facilities Ambulance Vehicles Urban Area Services Water Services: Treatment Distribution Watson & Associates Economists Ltd. PAGE G-16 H:\Oro-Medonte\2023 DC\Report\Oro-Medonte 2024 Development Charges Final Report.docx SCHEDULE "B" SCHEDULE OF DEVELOPMENT CHARGES NON-RESIDENTIAL Single and Semi- Detached Dwelling Multiples Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom Special Care/Special Dwelling Units (per sq.ft. of Gross Floor Area) Township Wide Services/Class of Service: Services Related to a Highway 8,323 6,668 5,071 3,305 3,055 2.90 Fire Protection Services 2,656 2,128 1,618 1,055 975 0.93 Parks and Recreation Services 7,030 5,632 4,283 2,791 2,580 0.73 Provincial Offences Act (By-Law Enforcement) 42 34 26 17 15 0.01 Growth Studies 708 567 431 281 260 0.25 Total Township-Wide Services/Class of Services 18,759 15,029 11,429 7,449 6,885 4.82 Urban Area Charges Water Services 10,496 8,409 6,395 4,168 3,852 5.84 Total Urban Area 10,496 8,409 6,395 4,168 3,852 5.84 GRAND TOTAL TOWNSHIP WIDE 18,759 15,029 11,429 7,449 6,885 4.82 GRAND TOTAL TOWNSHIP WIDE + URBAN AREA 29,255 23,438 17,824 11,617 10,737 10.66 Service/Class of Service RESIDENTIAL