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VERSION FOR PUBLIC CONSULTATION
PREPARED BY HEMSON FOR THE TOWNSHIP OF PERTH EAST
DEVELOPMENT CHARGES
BACKGROUND STUDY
September 3rd, 2021
1000 - 30 St. Patrick Street, Toronto ON M5T 3A3
416 593 5090 | [email protected] | www.hemson.com
CONTENTS
EXECUTIVE SUMMARY
1
1.
INTRODUCTION
4
2.
BOTH A MUNICIPAL-WIDE & AREA-SPECIFIC COST APPROACH TO ALIGN
DEVELOPMENT-RELATED COSTS & BENEFITS IS CALCULATED
6
A.
Development Charges is calculated under both a municipal-wide and area-
specific approach
6
B.
Key Steps in Determining Development Charges for Future Development-
Related Projects
7
3.
DEVELOPMENT FORECAST
12
A.
Residential Forecast
12
B.
Non-Residential Forecast
12
4.
SUMMARY OF HISTORICAL CAPITAL SERVICE LEVELS
14
5.
THE DEVELOPMENT-RELATED CAPITAL FORECAST
16
A.
A Development-Related Capital Forecast is Provided for Council's Approval
16
B.
The Development-Related Capital Forecast for General Services
16
C.
The Development-Related Capital Forecast for Engineered Services
18
6.
CALCULATED DEVELOPMENT CHARGES
20
A.
Unadjusted Development Charges Calculation
20
7.
COST OF GROWTH ANALYSIS
25
A.
Asset Management Plan
25
B.
Long-Term Capital and Operating Costs
26
C.
The Program is Deemed to be Financially Sustainable
27
8.
IMPLEMENTATION AND ADMINISTRATION
28
A.
Development Charges Collection & Administration
28
LISTS OF APPENDICES
A.
DEVELOPMENT FORECAST
30
B.
GENERAL SERVICES TECHNICAL APPENDIX
42
B.1
Fire Services
47
B.2
Library Services
56
B.3
Parks & Recreation
63
B.4
Development-Related Studies
75
C.
ENGINEERED SERVICES
80
C.1.1 Services Related to a Highway: Public Works
84
C.1.2 Services Related to a Highway: Roads & Related
93
C.2
Water Services
102
C.3
Wastewater Services
108
D.
AREA-SPECIFIC DEVELOPMENT CHARGES
114
D.1
Milverton Water Services
119
D.2
Milverton Wastewater Services
125
D.3
Shakespeare Water Services
131
D.4
Shakespeare Wastewater Services
136
E.
COST OF GROWTH ANALYSIS
141
F.
LOCAL SERVICE POLICY
149
G.
DRAFT DEVELOPMENT CHARGES BY-LAW
155
Executive Summary | 1
EXECUTIVE SUMMARY
The Development Charges Act, 1997 (DCA) and its associated Ontario Regulation 82/98 (O.
Reg. 82/98) allow municipalities to impose development charges on development to pay for
development-related capital costs. This 2021 Township of Perth East Development Charges
Background Study is presented as part of a process to establish a development charges by-
law that complies with this legislation. The Township of Perth East does not currently levy
development charges and this study process is intended to facilitate the passage of a new
by-law to implement DCs.
A.
PURPOSE OF 2021 DEVELOPMENT CHARGES (DC)
BACKGROUND STUDY
i.
Legislative Context
This Township of Perth East 2021 Development Charges Background Study is presented as
part of a process to approve a new DC by-law in compliance with the DCA. The study is
prepared in accordance with the DCA and its associated regulations, including amendments
that came into force through the More Homes, More Choice Act and COVID-19 Economic
Recovery Act.
ii.
Key Steps in Determining Future Development-Related Projects
In accordance with the DCA and associated regulations, several key steps are required to
calculate development charges. This includes preparing a development forecast,
establishing historical service levels, determining the increase in need for services arising
from development and appropriate shares of costs, attribution to development types (i.e.
residential and non-residential), and final adjustments to the calculated rates using a cash
flow analysis.
iii.
DC Eligible and Ineligible Costs
Development charges are intended to pay for the initial round of capital costs needed to
service new development over an identified planning period. This is based on the
overarching principle that "growth pays for growth". However, the DCA and associated
regulation includes several statutory adjustments and deductions that prevent these costs
from fully being recovered by growth. Such adjustments include, but are not limited to:
ineligible costs (e.g. computer equipment and vehicles with a replacement life of less than
seven years); ineligible services, including parking facilities, parkland acquisition, etc.;
Executive Summary | 2
deductions for costs that exceed historical service level caps; and statutory exemptions for
specific uses (e.g. industrial expansions).
iv.
Development-Related Capital Program is Subject to Change
It is recommended that Council adopt the development-related capital program developed
for the purposes of the 2021 DC Background Study. However, it is recognized that the DC
Background Study is a point-in-time analysis and there may be changes to project timing,
scope and costs through the Township's normal annual budget process.
B.
DEVELOPMENT FORECAST
The tables below provides a summary of the anticipated residential and non-residential
growth over the 2021-2030 planning period. Details on the development forecast are
provided in Appendix A.
C.
CALCULATED DEVELOPMENT CHARGES
The table below provides the Township-wide development charges for residential and non-
residential development based on the aforementioned forecast.
SUMMARY OF RESIDENTIAL AND NON-RESIDENTIAL
MUNICIPALTIY- WIDE DEVELOPMENT FORECAST
RESIDENTIAL FORECAST
2020
Estimate
Growth
Total at 2030
Growth
Total at 2046
Total Occupied Dwellings
4,140
160
4,300
320
4,460
Population
Census
12,460
180
12,640
340
12,800
Population In New Dwellings
390
748
NON-RESIDENTIAL FORECAST
2020
Estimate
Growth
Total at 2030
Growth
Total at 2046
Employment
3,520
390
3,920
670
4,190
Non-Residential Building Space (sq.m.)
23,620
39,940
2021 - 2030
2021 - 2046
TOWNSHIP OF PERTH EAST
Planning Period
Planning Period
2021 - 2030
2021 - 2046
Planning Period
Planning Period
Executive Summary | 3
For the purposes of this study, general services include: fire, library, parks and recreation
and development-related studies. Engineered Services include: Services Related to a
Highway (public works and roads), water and wastewater services.
D.
LONG-TERM CAPITAL AND OPERATING COSTS
An overview of the long-term capital and operating costs for the capital facilities and
infrastructure to be included in the DC by-law is provided in the study. This examination is
required by the DCA. Additional details on the long-term capital and operating impact
analysis are found in Appendix E.
Approximately $2.52 million in non-DC funding sources has been identified to fund the
development-related project costs over the planning period to 2046. Additionally, $96,900 in
interim financing may be required for projects related to the Pedestrian and Cycle Path
development which will provide benefit beyond the 2030 planning horizon.
E.
ASSET MANAGEMENT PLAN
The main purpose of the Asset Management Plan is to demonstrate that all assets
proposed to be funded under the DC by-law are financially sustainable over their full life
cycle. The DC recoverable annual asset management contributions for the 2021-2030 and
2021-2046 planning periods have been calculated. The years 2032 and 2047 have been
included to calculate the annual contribution for the 2021-2030 and 2021-2046 periods as
the expenditures in 2030 and 2046 will not trigger asset management contributions until
2031 and 2046 respectively. Further details on the asset management plan analysis for this
DC study can be found in Appendix E.
F.
PERTH EAST'S DEVELOPMENT CHARGES BY-LAW TO BE
RELEASED UNDER SEPARATE COVER
The Township's proposed DC by-law will be made available under separate cover a
minimum of two weeks in advance of the statutory public meeting.
Single & Semi
Detached
General Services
$3,911
$2,668
$2,002
$9.49
Engineered Services
$5,648
$3,852
$2,889
$30.91
Total Charge
$9,559
$6,520
$4,891
$40.40
Service
Charge Per Unit Type
Multiples
Apartments
Residential
Charge
($/m2)
Considerations for Municipal-Wide & Area-Specific Cost Approach| 4
1. INTRODUCTION
The Development Charges Act, 1997 (DCA) and its associated Ontario Regulation 82/98 (O.
Reg. 82/98) allow municipalities to recover development-related capital costs from new
development. The Township of Perth East Development Charges Background Study is
presented as part of a process to establish a development charges by-law that complies
with this legislation.
Anticipated growth in the Township of Perth East will increase the demand for all services.
The Township wishes to implement development charges to fund capital projects related to
growth in the Township so that development can continue to be serviced in a fiscally
responsible manner.
When a development charges by-law is proposed, the DCA and O. Reg. 82/98 require that a
development charges background study be prepared in support of the proposed changes
with reference to:
A forecast of the amount, type and location of development anticipated in the
Township;
The average capital service levels provided in the Township over the 10-year period
immediately preceding the preparation of the background study;
A review of future capital projects, including an analysis of gross expenditures, funding
sources, and net expenditures incurred, or to be incurred, by the Township or its local
boards to provide for the expected development, including the determination of the
development and non-development related components of the capital projects;
An asset management plan that demonstrates that all assets are financially sustainable
over their full life cycle; and
An examination of the long-term capital and operating costs for the capital
infrastructure required for each service to which the development charges by-laws
would relate.
The study identifies the development-related net capital costs attributable to development
that is forecast to occur in the Township. The costs are apportioned to types of
development (residential and non-residential) in a manner that reflects the increase in the
need for each service attributable to each type of development.
Considerations for Municipal-Wide & Area-Specific Cost Approach| 5
The DCA provides for a period of public review and comment regarding the calculated
development charges. This process includes considering and responding to comments
received by members of the public about the calculated charges. Following completion of
this process, and in accordance with the DCA and Council's review of this study, it is
intended that Council will pass new development charges for the Township.
The remainder of the study sets out the information and analysis upon which the calculated
DCs are based.
Section II designates the services for which the DCs are calculated and the areas within the
Township to which the DCs will apply. It also briefly reviews the methodologies that have
been used in this background study.
Section III presents a summary of the forecast residential and non-residential development
which is expected to occur within the Township over a planning period from 2021 to 2030
and from 2021 to 2046.
Section IV summarizes the 10-year historical average capital service levels that have been
attained in the Township, which form the basis for the development charges calculations.
In Section V, the development-related capital program that has been developed by various
Township departments is reviewed.
Section VI summarizes the calculation of applicable development charges and the resulting
calculated development charges by class and type of development.
Section VII presents a cost of growth analysis, which considers an Asset Management Plan
for the Township, demonstrating the financial sustainability of assets over the life cycle of
the 2021 Development Charges By-law and satisfying the requirements of the recent
amendments to the DCA. Additionally, the long-term operating impacts of the projects
considered under this study are reviewed.
Section VIII provides a review of development charges administrative matters, consideration
of area rating, and implementation options for the proposed development charges.
Considerations for Municipal-Wide & Area-Specific Cost Approach| 6
2. BOTH A MUNICIPAL-WIDE & AREA-SPECIFIC
COST APPROACH TO ALIGN DEVELOPMENT-
RELATED COSTS & BENEFITS IS CALCULATED
Several key steps are required when calculating any DC. However, specific circumstances
arise in each municipality that must be reflected in the calculation. Therefore, the study has
been tailored to the local conditions that exist in the Township of Perth East. The approach
to calculating the proposed DCs is focused on providing a reasonable alignment of
development-related costs with the development that necessitates them.
A.
DEVELOPMENT CHARGES IS CALCULATED UNDER BOTH A
MUNICIPAL-WIDE & AREA-SPECIFIC APPROACH
The Township of Perth East provides a wide range of services to the community and has an
extensive inventory of facilities, land, infrastructure, vehicles and equipment. The DCA
provides municipalities with flexibility to define services that will be included in a DC by-
law, provided that the other provisions of the Act and its associated regulations are met.
The DCA also requires the by-law to designate the areas within which the DCs shall be
imposed. DCs may apply to all lands in the Township or to other designated development
areas as specified in the by-law.
For the services that the Township provides, a range of capital facilities, land, equipment
and infrastructure is available throughout the Township of Perth East: libraries, fire
services, arterial roads, and so on. All residents in the Township have access to all facilities.
As new development occurs, new facilities will need to be added such that overall service
levels do not decline. A widely accepted method for sharing the development-related capital
costs for such services is to apportion them over all new development anticipated in the
Township.
The following services are included in the Municipal-wide DC calculation under both
approaches:
Fire Services
Library Services
Parks & Recreation
Development-Related Studies
Considerations for Municipal-Wide & Area-Specific Cost Approach| 7
Services Related to a Highway:
Public Works
Roads & Related
These services form a reasonable basis upon which to plan and administer the Municipal-
wide DCs. It is noted that the analysis of each of these services examines the individual
capital facilities and equipment currently in place. The resulting DC for these services is to
be imposed against all development anywhere in the Township.
In addition to those services proposed under a municipal-wide approach, the following
services have been calculated under both a Municipal-wide DC approach and area-specific
DC approach for the Milverton and Shakespeare area for council's consideration:
Water Services
Wastewater Services
Importantly, for the purposes of this background study, a municipal-wide approach for all
services (including water and wastewater) is used in the representation of all tables
throughout the study with exception to the consideration of area-rating (in Appendix D) in
which the alternative area-specific approach for water and wastewater infrastructure is
illustrated for council's consideration.
B.
KEY STEPS IN DETERMINING DEVELOPMENT CHARGES FOR
FUTURE DEVELOPMENT-RELATED PROJECTS
Several key steps are required in calculating DCs for future development-related projects.
These are summarized in Figure 1 below and discussed further in the following sections.
Considerations for Municipal-Wide & Area-Specific Cost Approach| 8
Figure 1 Key Steps in Calculating Development Charges
Development Forecast
s.5(1)1
Increase in Need for Service
s.2(1), s.5(1)2
Calculate 10-Year Historical
Service Level
s.5(1)4
Consideration of Available
Excess Capacity
s.5(1)5
Identify Ineligible Services
s.2(4)
Identify Development-Related
Capital Costs
s.5(1)7
Grants/Other
Contributions
s.5(2)
Replacement/
Benefit-to-Existing
s.5(1)6
Required Service
Discount
s.5(1)8
Costs Eligible
for Recovery
Residential Sector
(Unit Type)
Non-Residential Sector
(per m2 of GFA)
Local Services
s.59
Post-Period Benefit
s.5(1)4
Rules for DCs Payable
s.5(1)9
Restrictions on rules
s.5(6)
Discounts, reductions,
exemptions
s.5(1)10
Requires funding from non-
DC sources (i.e. property
tax, user fees)
Other Requirements
of DC Background
Study
Long-term Capital and
Operating Impacts
s.10(1)(c)
Consideration for
Area Rating
s.2(9)(10)(11), s.10(1)(c.1)
Asset
Management Plan
s.10(3)
DC Polices and Rules
Increase in the need for
service attributable to the
anticipated development
must be estimated
Increase in need may not
exceed average level of service
immediately preceding
background study
Anticipated amount, type and
location of development must
be estimated
Considerations for Municipal-Wide & Area-Specific Cost Approach| 9
i.
Development Forecast
The first step in the methodology requires a development forecast to be prepared for the
study period 2021-2030 for all services. The development forecast is broadly based on the
Township achieving average annual growth in occupied dwellings of 10 units; this represent
slightly lower growth that what has been experienced in last 5 years. Fuelled in part by
contractions in population growth, the Township's employment is forecast to decrease over
the planning period.
For the residential portion of the forecast, both net (or Census) population growth and
population growth in new units is estimated. The use of net population growth is one
approach to determining the increased need for servicing, infrastructure and facilities
arising from development.
When calculating the DC however, the development-related net capital costs are spread
over the total additional population that occupy new housing units. This population in new
units represents the population from which DCs will be collected.
The non-residential portion of the forecast estimates the Gross Floor Area (GFA) of building
space to be developed over the 10-year period, 2021 to 2030. The forecast of GFA is based
on the employment forecast for the Township. Factors for floor space per worker are used
to convert the employment forecast into gross floor area for the purposes of the DC Study.
ii.
Service Categories and Historical Service Levels
The DCA states that the increase in the need for service attributable to anticipated
development:
... must not include an increase that would result in the level of service exceeding the
average level of that service provided in the Municipality over the 10-year period
immediately preceding the preparation of the background study...(s. 5. (1) 4.)
Historical 10-year average service levels thus form the basis for development charges. A
review of Township's capital service levels for buildings, land, vehicles and so on, has
therefore been prepared as a reference for the calculation, so the portion of future capital
projects that may be included in the development charge can be determined. The historical
service levels used in this study have been calculated based on the period 2011-2020.
Considerations for Municipal-Wide & Area-Specific Cost Approach| 10
iii.
Development-Related Capital Program and Analysis of Net Capital
Costs to be included in the Development Charges
A development-related capital program has been prepared by Township staff as part of the
present study. The program identifies development-related projects and their gross and net
costs, after allowing for capital grants, subsidies or other contributions as required by the
Act (DCA, s. 5. (2)). The capital program provides another cornerstone upon which
development charges are based. The DCA requires the increase in the need for service
attributable to the anticipated development may include an increase:
... only if the council of the Municipality has indicated that it intends to ensure that
such an increase in need will be met. (s. 5. (1) 3.)
In conjunction with DCA, s. 5. (1) 4. referenced above, these sections have the effect of
requiring that the development charge be calculated on the lesser of the historical 10-year
average service levels or the service levels embodied in future plans of the Township. The
development-related capital forecast prepared for this study ensures that development
charges are only imposed to help pay for projects that have been, or are intended to be,
purchased or built in order to accommodate future anticipated development. It is not
sufficient in the calculation of development charges merely to have had the service in the
past. There must also be a demonstrated commitment to continue to emplace facilities or
infrastructure in the future. In this regard, Ontario Regulation 82/98, s. 3 states that:
For the purposes of paragraph 3 of subsection 5 (1) of the Act, the council of a
Municipality has indicated that it intends to ensure that an increase in the need for
service will be met if the increase in service forms part of an Official Plan, capital
forecast or similar expression of the intention of the council and the plan, forecast or
similar expression of the intention of the council has been approved by the council.
For some projects in the development-related capital forecast, a portion of the project may
confer benefits to existing (a "BTE") residents. As required by the DCA, s. 5. (1) 6., these
portions of projects and their associated net costs must be funded by the Township from
non-development charges sources. The amount of Township funding for such non-
development shares of projects is also identified as part of the preparation of the
development-related capital forecast.
There is also a requirement in the DCA to reduce the applicable development charge by the
amount of any "uncommitted excess capacity" that is available for a service. Such capacity
is available to partially meet future servicing requirements. Adjustments are made in the
analysis to meet this requirement of the Act.
Considerations for Municipal-Wide & Area-Specific Cost Approach| 11
iv.
Attribution to Types of Development
The next step in the determination of development charges is the allocation of the
development-related net capital costs between the residential and the non-residential
sectors. This is done by using different apportionments for different services in accordance
with the demands which the two sectors would be expected to place on the various services
and the different benefits derived from those services.
Where reasonable data exist, the apportionment is based on the expected demand for, and
use of, the service by each sector (e.g. based on shares of population in new units and
employment growth).
Finally, the residential component of the Municipal-wide charge is applied to different
housing types on the basis of average occupancy factors. The non-residential component is
applied on the basis of gross building space in square metres.
v.
Final Adjustment
The final determination of the development charge results from adjustments made to
development-related net capital costs for each service and sector resulting from the
application of any unallocated reserve fund balances available to finance the development-
related capital costs in the capital forecast. A cash flow analysis is also undertaken to
account for the timing of projects and receipt of development charges for Municipal-wide
services. Interest earnings or borrowing costs are therefore accounted for in the calculation
as allowed under the DCA.
Note on Rounding
Due to rounding in some tables, numbers may not add up precisely to the totals indicated
and percentages may not precisely reflect the absolute figures for the same reason.
Development Forecast | 12
3. DEVELOPMENT FORECAST
This section provides the basis for the development forecasts used in calculating the DCs,
as well as a summary of the forecast results. A more detailed summary of the forecasts,
including tables illustrating historical trends and forecast results is provided in Appendix A.
A.
RESIDENTIAL FORECAST
DCs are levied on residential development as a charge per new unit. Therefore, for the
residential forecast, a projection of both the population growth1 as well as the population in
new units is required.
The population growth determines the need for additional facilities and provides the
foundation for the development-related capital program.
When calculating the DC, however, the development-related net capital costs are
spread over the total additional population that occupy new housing units. This
population in new units represents the population from which DCs will be collected.
Table 1 provides a summary of the residential forecast over the 10 and 26 year planning
periods from 2021 to 2030 and from 2021 to 2046. As noted in Section II, for DC calculation
purposes the planning period to 2030 is applicable to all general services considered in this
study while the 2046 planning period is applicable to all engineered services.
The Township's population is forecast to grow by 180 people over the next 10 years, and
340 over the next 26 years reaching 12,640 people by 2030 and 12,800 people by 2046. An
additional 160 occupied dwelling units are forecast to be built between 2021 and 2030 and
the additional population residing in these units is forecast to be 390. Between 2021 and
2046, an additional 320 occupied dwelling units are forecast to be built and an additional
750 people are anticipated to reside in these units.
B.
NON-RESIDENTIAL FORECAST
DCs are levied on non-residential development as a charge per square metre of GFA. As
with the residential forecast, the non-residential forecast requires both a projection of
employment growth as well as a projection of the employment growth associated with new
floor space in the Township.
1 Commonly referred to as "net population growth" in the context of development charges.
Development Forecast | 13
The non-residential forecast projects an increase of 390 employees to 2030 and 670
employees to 2046. This is anticipated to be accommodated in 23,620 square metres of new
non-residential building space by 2030 and 39,940 square metres of new non-residential
building space by 2046.
Table 1 also provides a summary of the non-residential development forecasts used in this
analysis.
SUMMARY OF RESIDENTIAL AND NON-RESIDENTIAL
MUNICIPALTIY- WIDE DEVELOPMENT FORECAST
RESIDENTIAL FORECAST
2020
Estimate
Growth
Total at 2030
Growth
Total at 2046
Total Occupied Dwellings
4,140
160
4,300
320
4,460
Population
Census
12,460
180
12,640
340
12,800
Population In New Dwellings
390
748
NON-RESIDENTIAL FORECAST
2020
Estimate
Growth
Total at 2030
Growth
Total at 2046
Employment
3,520
390
3,920
670
4,190
Non-Residential Building Space (sq.m.)
23,620
39,940
2021 - 2030
2021 - 2046
TOWNSHIP OF PERTH EAST
TABLE 1
Planning Period
Planning Period
2021 - 2030
2021 - 2046
Planning Period
Planning Period
Summary of Historical Capital Service Levels | 14
4. SUMMARY OF HISTORICAL CAPITAL SERVICE
LEVELS
The DCA and Ontario Regulation 82/98 require that DCs be set at a level no higher than the
average level of service provided in the municipality over the 10-year period immediately
preceding the preparation of the Background Study, on a service by service basis.
For non-engineered services (Fire Services, Library Services, Parks & Recreation) the
legislative requirement is met by documenting historical service levels for the preceding 10
years, in this case, for the period from 2011 to 2020. For Services related to a highway,
service levels are measured in a similar fashion, as a ratio of inputs per capita, or per capita
plus employment.
O. Reg. 82/98 requires that, when determining historical service levels, both quantity and
quality of service be taken into consideration. In most cases, the service levels are initially
established in quantitative terms. For example, service levels for buildings are presented in
terms of square feet per capita. The qualitative aspect is introduced by the consideration of
the monetary value of the facility or service. In the case of buildings, for example, the cost
would be shown in terms of dollars per square foot to replace or construct a facility of the
same quality. This approach helps to ensure that the development-related capital facilities
that are to be charged to new development reflect not only the quantity (number and size)
but also the quality (value or replacement cost) of service provided historically by the town.
Both the quantitative and qualitative aspects of service levels used in the present analysis
are based on information provided by municipal staff, based on historical records and
experience with costs to acquire or construct similar facilities, equipment and
infrastructure.
The service levels are expressed as a dollar value per capita ($/capita) or a dollar value per
capita plus employment ($/capita + employment) of infrastructure value. This service level
expression is a construction to meet the requirement of Section 5(1) of the DCA and does
not directly reflect the utilization of infrastructure or the way municipalities plan for
services.
Table 2 summarizes service levels for all applicable services included in the DC calculation.
Appendix B and C (for services related to a highway) provides the detailed historical
inventory data upon which the calculation of service levels for the general services is based.
Summary of Historical Capital Service Levels | 15
TABLE 2
TOWNSHIP OF PERTH EAST
SUMMARY OF AVERAGE HISTORIC SERVICE LEVELS 2011 - 2020
FOR MUNICIPAL-WIDE SERVICES
Service
FIRE SERVICES
$695.01 per pop. & employment
Buildings
$174.69 per pop. & employment
Land
$55.09 per pop. & employment
Furniture & Equipment
$48.43 per pop. & employment
Vehicles
$416.80 per pop. & employment
LIBRARY SERVICES
$112.88 per capita
Buildings
$74.26 per capita
Land
$11.43 per capita
Collection Materials
$20.21 per capita
Furniture And Equipment
$6.98 per capita
PARKS & RECREATION
$1,559.70 per capita
Buildings and Equipment
$1,193.23 per capita
Parkland Development
$70.03 per capita
Park Amenities
$296.44 per capita
$650.81 per pop. & employment
Buildings
$188.77 per pop. & employment
Land
$79.28 per pop. & employment
Furniture And Equipment
$5.44 per pop. & employment
Fleet
$377.32 per pop. & employment
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
$3,950.83 per pop. & employment
Roads
$1,912.13 per pop. & employment
Bridges & Culverts
$1,741.49 per pop. & employment
Sidewalks
$180.34 per pop. & employment
Other Roads And Related
$116.87 per pop. & employment
2011 - 2020
Service Level
Indicator
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
The Development-Related Capital Forecast | 16
5. THE DEVELOPMENT-RELATED CAPITAL
FORECAST
The DCA requires the Council of a municipality to express its intent to provide future capital
facilities at the level reflected by the capital program incorporated in the DC calculation and
recovered through the proposed rates. As noted in Section II, Ontario Regulation 82/98, s. 3
states that:
For the purposes of paragraph 3 of subsection 5 (1) of the Act, the
council of a municipality has indicated that it intends to ensure that an
increase in the need for service will be met if the increase in service
forms part of an official plan, capital forecast or similar expression of the
intention of the council and the plan, forecast or similar expression of
the intention of the council has been approved by the council.
A.
A DEVELOPMENT-RELATED CAPITAL FORECAST IS PROVIDED
FOR COUNCIL'S APPROVAL
Based on the development forecasts summarized in Section III and detailed in Appendix A,
Township staff, in collaboration with the consultants have created a development-related
capital forecast setting out those projects that are required to service anticipated
development. For all general services, the capital plan covers the planning period from 2021 to
2030. For all engineered services, the capital plan covers the planning period from 2021 to
2046.
One of the recommendations contained in this Background Study is for Council to adopt the
capital forecast created for the purposes of the DC calculation. It is assumed that future
capital budgets and forecasts will continue to bring forward the development-related
projects contained herein, that are consistent with the development occurring in the
Township of Perth East. It is acknowledged that changes to the forecast presented herein
may occur through the Township's normal capital budget process.
B.
THE DEVELOPMENT-RELATED CAPITAL FORECAST FOR
GENERAL SERVICES
A summary of the development-related capital forecast for general services is presented in
Table 3A.
The Development-Related Capital Forecast | 17
The table provides a total for all general services analysed over the 10-year planning period.
Further details on the capital plans for each individual service category are available in
Appendix B.
The development-related capital forecast for general services amounts to a total gross cost
of approximately $2.35 million. Approximately $604,000 in alternative funding sources have
been identified for Parks & Recreation and Fire Services. After applying this deduction, the
net municipal cost of the capital program is $1.75 million.
Of the $1.75 million 10-year net capital costs for general services, $1.01 million (58 per
cent) is related to the Fire Services capital program. The forecast includes two additional
trucks as well as new defibrillator equipment.
The Parks & Recreation net development-related capital program, which totals
approximately $610,000, accounts for 35 per cent of the overall capital forecast for general
services. The forecast includes new park development and amenities as well as a Parks &
Recreation Master Plan.
Development-Related Studies include approximately $110,000 in net capital costs (6 per
cent of the program) and includes two development charges studies as well as a provision
for other development-related studies.
The 10-year capital forecast for Library Services totals $20,000 and accounts for 1 per cent
of the capital program for general services. An annual provision for addition collection
materials is included in the program.
The capital forecast incorporates those projects identified to be related to development
anticipated in the next 10 years to 2030. It is not implied that all of these costs are to be
recovered from new development by way of DCs (see Section VI for the method and
determination of net capital costs attributable to development). Portions of this capital
forecast may relate to providing servicing for replacement of existing capital facilities or for
development anticipated to occur beyond the 2021-2030 planning period.
The Development-Related Capital Forecast | 18
C.
THE DEVELOPMENT-RELATED CAPITAL FORECAST FOR
ENGINEERED SERVICES
Table 3B provides the development-related capital costs for engineered services. The
capital program totals approximately $4.05 million and provides servicing for anticipated
development over the planning period from 2021 to 2046. Approximately $385,000 in
subsidies have been identified to fund the program which leaves about $3.67 million as the
net municipal cost.
Of the $3.67 million 26-year net municipal capital costs for engineered services, $2.28
million (62 per cent) is related to the Services Related to a Highway; of which, $1.94 million
is related to Roads & Related works and $340,000 is related to Public Works. The forecast
includes road constructions and improvements to Roads 103, 67, and 33 as well as four
addition fleet.
The Wastewater Services development-related capital program, which totals approximately
$950,000, accounts for 26 per cent of the overall net capital forecast for engineered
services. This includes a new sewage pumping station, inflow & infiltration system work and
a Master Plan.
Gross
Grants/
Municipal
Service
Cost
Subsidies
Cost
FIRE SERVICES
$1,029.0
$20.0
$1,009.0
1.1 Fleet
$1,025.0
$20.0
$1,005.0
1.2 Equipment
$4.0
$0.0
$4.0
LIBRARY SERVICES
$20.0
$0.0
$20.0
2.1 Collection Materials
$20.0
$0.0
$20.0
PARKS & RECREATION
$1,194.0
$584.0
$610.0
3.1 Park Development
$1,144.0
$534.0
$610.0
3.2 Studies
$110.0
$0.0
$110.0
Development-Related Studies
$110.0
$0.0
$110.0
4.1 Studies
TOTAL GENERAL SERVICES
$2,353.0
$604.0
$1,749.0
TOWNSHIP OF PERTH EAST
SUMMARY OF DEVELOPMENT-RELATED CAPITAL PROGRAM
GENERAL SERVICES 2021-2030
(in $000)
TABLE 3A
The Development-Related Capital Forecast | 19
Water Services include approximately $440,000 in net capital costs (12 per cent of the
program) and includes a new well, pickup truck, and Master Plan.
Details on the individual capital works in the program, including project costs, timing, and
distribution of benefits are provided in Appendix C.
Gross
Grants/
Municipal
Service
Cost
Subsidies
Cost
Services Related To A Highway: Public Works
$340.0
$0.0
$340.0
1.1 Vehicles and Fleet
$340.0
$0.0
$340.0
Services Related To A Highway: Roads & Related
$2,212.6
$275.0
$1,937.6
2.1 Roads Construction
$2,212.6
$275.0
$1,937.6
Water Services
$500.0
$60.0
$440.0
3.1 Water Services
$500.0
$60.0
$440.0
Wastewater Services
$1,000.0
$50.0
$950.0
4.1 Wastewater Services
$1,000.0
$50.0
$950.0
TOTAL ENGINEERED SERVICES
$4,052.60
$385.00
$3,667.60
ENGINEERED SERVICES 2021-2046
TABLE 3B
TOWNSHIP OF PERTH EAST
SUMMARY OF DEVELOPMENT-RELATED CAPITAL PROGRAM
(in $000)
Calculated Development Charges | 20
6. CALCULATED DEVELOPMENT CHARGES
This section summarizes the calculation of DCs for each service category and the resulting
total charges by sector. For all Township services, the calculation of the "unadjusted" per
capita (residential) and per square metre (non-residential) charges is reviewed.
Adjustments to these amounts resulting from a cash flow analysis that accounts for interest
earnings and borrowing costs are also discussed.
For residential development, the adjusted total per capita amount is converted to a variable
charge by housing unit type using various unit occupancy factors. For non-residential
development, the charges are based on gross floor area of building space.
It is noted that the calculation of the Township-wide DCs does not include any provision for
exemptions required under the DCA, such as the exemption from the payment of DCs for
industrial building expansions. Such legislated exemptions, or other exemptions that
Council may choose to provide, will result in loss of DC revenue for the affected types of
development. However, any such revenue loss may not be made up by offsetting increases
in other portions of the calculated charge.
A.
UNADJUSTED DEVELOPMENT CHARGES CALCULATION
A summary of the "unadjusted" residential and non-residential DCs is presented in Tables 4
and 5 for general and engineered services respectively. Further details of the calculations
for each individual service category are available in Appendices B and C.
i.
General Services
A summary of the "unadjusted" residential and non-residential DCs for general services is
presented in Table 4.
The net capital forecast for the general services totals $1.75 million and incorporates those
projects identified to be related to development anticipated in the next 10 years. However,
not all of the capital costs are to be recovered from new development by way of DCs. As
shown on Table 4, approximately $907,000 relates to replacement of existing capital
facilities or for shares of projects that provide benefit to the existing community. This
amount has been netted off the chargeable capital costs.
Calculated Development Charges | 21
A share of approximately $96,900 related to Parks & Recreation is attributable to
development beyond 2030. This development-related share has been removed from the DC
calculation though it may be recovered under future DC studies or other growth-related
funding mechanisms (such as CBCs if implemented).
The total costs eligible for recovery through DCs is approximately $745,100. This amount is
allocated between the residential and non-residential sectors to derive the unadjusted DCs.
Library and Parks & Recreation services are deemed to benefit residential development
only, while the remaining services are allocated between both sectors based on shares of
population in new units and employment growth in new space in the Township. The
allocation to the residential sector for Fire Services and Development-Related Studies is
calculated at 50 per cent with 50 per cent to the non-residential sector.
Approximately $523,100 of the DC eligible capital program is deemed to benefit residential
development. When this amount is divided by the 10-year growth in population in new
dwelling units (390), an unadjusted charge of $1,342.70 per capita is the result. The non-
residential share totals $222,000, which yields an unadjusted charge of $9.40 per square
metre when divided by the 10-year increase in non-residential building space (23,622
sq.m.).
TOWNSHIP OF PERTH EAST
SUMMARY OF UNADJUSTED RESIDENTIAL AND NON-RESIDENTIAL DEVELOPMENT CHARGES
2021-2030 Year Growth in Population in New Units
390
2021-2030 Year Growth in Square Metres
23,622
Total DC
Net
Replacement
Eligible
Service
Municipal
& Benefit to
Available
Post-Period
Costs for
Cost
Existing
DC Reserves
Benefit
Recovery
($000)
($000)
($000)
($000)
($000)
%
$000
%
$000
Fire Services
$1,009.0
$675.0
$0.0
$0.0
$334.0
50%
$167.0
50%
$167.0
Unadjusted Development Charge Per Capita ($)
$428.62
Unadjusted Development Charge Per Sq. M. ($)
$7.07
Library Services
$20.0
$0.0
$0.0
$0.0
$20.0
100%
$20.0
0%
$0.0
Unadjusted Development Charge Per Capita ($)
$51.33
Unadjusted Development Charge Per Sq. M. ($)
$0.00
Parks & Recreation
$610.0
$232.0
$0.0
$96.9
$281.1
100%
$281.1
0%
$0.0
Unadjusted Development Charge Per Capita ($)
$721.59
Unadjusted Development Charge Per Sq. M. ($)
$0.00
Development-Related Studies
$110.0
$0.0
$0.0
$0.0
$110.0
50%
$55.0
50%
$55.0
Unadjusted Development Charge Per Capita
$141.2
Unadjusted Development Charge Per Sq. M.
$2.33
TOTAL GENERAL SERVICES
$1,749.0
$907.0
$0.0
$96.9
$745.1
$523.1
$222.0
Unadjusted Development Charge Per Capita ($)
$1,342.70
Unadjusted Development Charge Per Sq. M. ($)
$9.40
Share
Share
TABLE 4
CAPITAL PROGRAM FOR GENERAL SERVICES
Residential
Non-Residential
Development-Related Capital Forecast (2021 - 2030)
Calculated Development Charges | 22
ii.
Engineered Services
Table 5 displays the calculation of the DC rates for the engineered services. The
development-related engineering infrastructure will be used to service development in the
Township of Perth East between 2021 and 2046.
The net capital forecast for municipal-wide engineered services totals $2.28 million. Given
the benefit of Water and Wastewater services are exclusive to urban areas in the Township,
the capital costs related to Water and Wastewater services are allocated between
residential and non-residential development based on shares of population in new units and
employment growth in new spaces in urban areas rather than on a municipal-wide basis.
The net capital forecast for all urban services (which include water and wastewater) total
$3.67 million.
This amount is not to be recovered in full by way of development charges. Table 5 shows
that approximately $1.62 million of the capital program relates to replacement of existing
capital works or for shares of projects that provide benefit to the existing community. This
is mostly attributed to the Services Related to a Highway: Roads & Related based on the
portion of the road constructions which are boundary roads with a neighbouring community.
No post-period shares have been calculated for any engineered servicing projects. The
remaining $2.05 million is related to development in the 2021 to 2046 planning period and
has been included in the DC calculation for urban services.
The capital program eligible for recovery through DCs is allocated 53 per cent to the
residential and 47 per cent non-residential sectors based on future shares of population in
new units and employment growth over the planning period.
As a result, approximately $1.09 million of the urban engineered services capital program is
deemed to benefit residential development. When this amount is divided by the growth in
population in new dwelling units for each service (748 for Services Related to a Highway,
and 703 for Water and Wastewater Services), a charge of $1,504.74 per capita is the result.
The non-residential share totals approximately $963,900 and, when this amount is divided
by the increase in long-term non-residential building space (39,942 square metres for
Services Related to a Highway and 37,546 for Water and Wastewater Services), a charge of
$24.97 per square metre results.
Calculated Development Charges | 23
iii.
Adjusted Residential and Non-Residential Development Charges
Final adjustments to the "unadjusted" DC rates for all services are made through a cash
flow analysis. The analysis, details of which are included in the appendices, considers the
borrowing cost and interest earnings associated with the timing of expenditures and DC
receipts for each service category.
Table 6 summarizes the results of the cash flow adjustments for the residential DC rates.
The adjusted per capita rate for general and engineered services increases from $2,847 per
capita to $3,260 per capita after the cash flow analysis for the residential DC.
Table 6 also provides the calculated rates by residential unit. As shown in the table, the
calculated residential charge for dwelling units ranges from $9,559 for an urban serviced
single or semi-detached unit to $4,891 for an apartment unit (with urban services). The
calculated charge for multiple unit types is $6,520 per unit. If a development occurs in a rural
area without water and wastewater servicing, the municipal-wide rural rate would apply.
TOWNSHIP OF PERTH EAST
SUMMARY OF UNADJUSTED RESIDENTIAL AND NON-RESIDENTIAL DEVELOPMENT CHARGES
2021-2046 Year Growth in Population in New Units
748
2021-2046 Year Growth in Square Metres
39,942
2021-2046 Year Growth in Population in New Units (Urban)
703
2021-2046 Year Growth in Square Metres (Urban)
37,546
Total DC
Net
Replacement
Eligible
Service
Municipal
& Benefit to
Available
Post-Period
Costs for
Cost
Existing
DC Reserves
Benefit
Recovery
($000)
($000)
($000)
($000)
($000)
%
$000
%
$000
Services Related To A Highway: Public Works
$340.0
$48.5
$0.0
$0.0
$291.5
53%
$154.5
47%
$137.0
Unadjusted Development Charge Per Capita
$206.63
Unadjusted Development Charge Per Sq. M.
$3.43
Services Related To A Highway: Roads & Related
$1,937.6
$1,305.8
$0.0
$0.0
$631.8
53%
$334.9
47%
$296.9
Unadjusted Development Charge Per Capita
$447.86
Unadjusted Development Charge Per Sq. M.
$7.43
TOTAL MUNICIPAL-WIDE SERVICES
$2,277.6
$1,354.3
$0.0
$0.0
$923.3
$489.3
$434.0
Unadjusted Development Charge Per Capita ($)
$654.49
Unadjusted Development Charge Per Sq. M. ($)
$10.86
Water Services
$440.0
$262.5
$0.0
$0.0
$177.5
53%
$94.1
47%
$83.4
Unadjusted Development Charge Per Capita
$133.85
Unadjusted Development Charge Per Sq. M.
$2.22
Wastewater Services
$950.0
$0.0
$0.0
$0.0
$950.0
53%
$503.5
47%
$446.5
Unadjusted Development Charge Per Capita
$716.40
Unadjusted Development Charge Per Sq. M.
$11.89
TOTAL URBAN SERVICES
$1,390.0
$262.5
$0.0
$0.0
$1,127.5
$597.6
$529.9
Unadjusted Development Charge Per Capita ($)
$850.25
Unadjusted Development Charge Per Sq. M. ($)
$14.11
TOTAL ENGINEERED SERVICES
$3,667.6
$1,616.8
$0.0
$0.0
$2,050.8
$1,086.9
$963.9
Unadjusted Development Charge Per Capita ($)
$1,504.74
Unadjusted Development Charge Per Sq. M. ($)
$24.97
*Note: growth in urban population & employment is applicable to water and wastewater services only.
Share
Share
TABLE 5
CAPITAL PROGRAM FOR ENGINEERED SERVICES
Development-Related Capital Forecast & (2021-2046)
Residential
Non-Residential
Calculated Development Charges | 24
After cash flow considerations the unadjusted non-residential DC increases by $6.03, from
$34.37 to $40.40 per square metre. The final non-residential charges are displayed in Table
7. Please note, the Township of Perth East does not currently levy development charges
and the residential and non-residential development charges calculated would represent a
change from current practices if implemented.
Unadjusted
Adjusted Charge
Charge Per
Per Capita
Single & Semi
SERVICE
Capita
After Cashflow
Detached
FIRE SERVICES
$429
$429
$1,257
$858
$643
LIBRARY SERVICES
$51
$50
$148
$101
$76
PARKS & RECREATION
$722
$713
$2,090
$1,426
$1,070
DEVELOPMENT-RELATED STUDIES
$141
$142
$416
$283
$213
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
$207
$260
$763
$520
$390
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
$448
$595
$1,746
$1,191
$893
SUB-TOTAL MUNICIPAL-WIDE CHARGE (RURAL)
$1,997
$2,190
$6,420
$4,379
$3,285
WATER SERVICES
$134
$159
$465
$317
$238
WASTEWATER SERVICES
$716
$912
$2,674
$1,824
$1,368
SUB-TOTAL URBAN ENGINEERED SERVICE CHARGE
$850
$1,071
$3,139
$2,141
$1,606
TOTAL DEVELOPMENT CHARGE (URBAN SERVICES)
$2,847
$3,260
$9,559
$6,520
$4,891
1: Person per unit:
2.93
2.00
1.50
Multiples
Apartments
DEVELOPMENT CHARGE
TABLE 6
TOWNSHIP OF PERTH EAST
RESIDENTIAL DEVELOPMENT CHARGE
Charge Per Unit Type (1)
Unadjusted
Adjusted
Charge
Charge
SERVICE
($/sq.m.)
($/sq.m.)
FIRE SERVICES
$7.07
$7.13
LIBRARY SERVICES
$0.00
$0.00
PARKS & RECREATION
$0.00
$0.00
DEVELOPMENT-RELATED STUDIES
$2.33
$2.36
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
$3.43
$4.18
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
$7.43
$9.56
SUB-TOTAL MUNICIPAL-WIDE CHARGE (RURAL)
$20.26
$23.23
WATER SERVICES
$2.22
$2.55
WASTEWATER SERVICES
$11.89
$14.62
SUB-TOTAL URBAN ENGINEERED SERVICE CHARGE
$14.11
$17.17
TOTAL DEVELOPMENT CHARGE PER SQ.M (URBAN SERVICE)
$34.37
$40.40
TABLE 7
TOWNSHIP OF PERTH EAST
NON-RESIDENTIAL DEVELOPMENT CHARGE
DEVELOPMENT CHARGE
Cost of Growth Analysis | 25
7. COST OF GROWTH ANALYSIS
This section summarizes the examination of the long-term capital and operating costs as
well as the asset management-related annual provisions for the capital facilities and
infrastructure to be included in the DC By-law. This examination is required as one of the
provisions of the DCA. Additional details on the cost of growth analysis, including asset
management analysis, is included in Appendix E.
A.
ASSET MANAGEMENT PLAN
Tables 8 and 9 provides the calculated annual asset management contribution for the gross
capital expenditures and the share related to the DC recoverable portion for general and
engineered services respectively.
The year 2031 has been included in Table 8 to calculate the annual contribution for the 2021-
2030 period as the expenditures in 2030 will not trigger asset management contributions until
2031. As shown in Table 8, by 2031, the Township should fund an additional $30,200 per
annum in order to fund the full life cycle costs of the new assets related to the municipal-
wide 10-year services supported under the development charges by-law.
Table 9 provides the calculated annual asset management contribution for the gross capital
expenditures and the share related to the 2021-2046 DC recoverable portion. Similar to
general services, the year 2047 has been included to calculate the annual contribution as
the expenditures in 2046 will not trigger asset management contributions until 2047. As
shown in Table 9, by 2047, the Township should fund an additional $74,800 per annum in
order to fund the full life cycle costs of the new assets related to the engineered services
supported under the development charges by-law
2021 - 2030
Calculated AMP Annual
Capital Program
Provision by 2031
Service
DC Recoverable
Non-DC Funded*
DC Related
Non-DC Related
Fire Services
334,000
$
695,000
$
18,700
$
40,400
$
Library Services
20,000
$
-
$
1,900
$
-
$
Parks & Recreation
281,100
$
912,900
$
9,600
$
28,900
$
Development-Related Studies
110,000
$
-
$
-
$
-
$
TOTAL
745,100
$
1,607,900
$
30,200
$
69,300
$
* Includes grants, subsidies, replacement costs, and costs that will be recovered in future development charges studies (e.g. other-development related)
TABLE 8
TOWNSHIP OF PERTH EAST
CALCULATED ANNUAL PROVISION BY 2031
Cost of Growth Analysis | 26
B.
LONG-TERM CAPITAL AND OPERATING COSTS
Appendix E summarizes the estimated increase in net operating costs that the Township
will experience for additions associated with the planned capital forecast. Table 10
summarizes the estimated increase in net operating costs that the Township will experience
for additions associated with the planned capital program.
By 2030, the Township's net operating costs are estimated to increase by $134,000 and
$365,000 by 2046.
Appendix E also summarizes the components of the development related capital program
that will require funding from non-development charge sources.
-
In total, $907,000 will need to be financed from non-DC sources (likely property
taxes) over the 2021-2030 period for general services;
-
Over the longer-term for engineering related tax supported services, a further $1.35
million has been identified which requires funding from non-DC sources; and
-
Lastly, over the longer-term for utility rate supported services, $262,500 has been
identified as the share required from non-dc sources.
Council is made aware of these factors so that they understand the financial implications of
the quantum and timing of the projects included in the development related capital forecast
in this study.
TABLE 9
TOWNSHIP OF PERTH EAST
CALCULATED ANNUAL PROVISION BY 2047
2021 - 2046
Calculated AMP Annual
Capital Program
Provision by 2047
Service
DC Recoverable
Non-DC Funded*
DC Related
Non-DC Related
Services Related To A Highway: Public Works
291,500
$
48,500
$
26,500
$
4,900
$
Services Related To A Highway: Roads & Related
631,800
$
1,580,800
$
26,200
$
65,700
$
Water Services
177,500
$
322,500
$
5,900
$
6,500
$
Wastewater Services
950,000
$
50,000
$
16,200
$
-
$
TOTAL
2,050,800
$
2,001,800
$
74,800
$
77,100
$
* Includes grants, subsidies, replacement costs, and costs that will be recovered in future development charges studies (e.g. other-development related)
Cost of Growth Analysis | 27
C.
THE PROGRAM IS DEEMED TO BE FINANCIALLY SUSTAINABLE
In summary, the asset management plan and long-term capital and operating analysis
contained in Appendix E demonstrate that the Township can afford to invest and operate
the identified general and engineered services infrastructure over the planning periods to
2030 and 2046.
Importantly, the Township's annual budget review allows staff to continue to monitor and
implement mitigating measures should the program become less sustainable.
TABLE 10
TOWNSHIP OF PERTH EAST
ESTIMATED NET OPERATING COST OF THE PROPOSED
DEVELOPMENT-RELATED CAPITAL PROGRAM
Service Area
Estimated
Operating Costs
($000)
Estimated
Operating Costs
($000)
2030
2046
Fire Services
Fleet & Equipment
$0.10
per $1.00 added
$100.90
Library Services
Collection Materials
$0.15
per $1.00 added
$3.00
Parks & Recreation
Park Development
$0.05
per $1.00 added
$30.50
Services Related To A Highway: Public Works
Vehicles and Fleet
$0.70
per $1.00 added
$238.00
Services Related To A Highway: Roads & Related
Roads Construction
$400
per household
$126.65
TOTAL ESTIMATED OPERATING COSTS ($000)
$134
$365
Net Cost
(in constant $2021)
Implementation and Administration | 28
8. IMPLEMENTATION AND ADMINISTRATION
This section sets out the DCA requirements in respect of DC collection and administration.
Implementation options are provided for Council's consideration.
A.
DEVELOPMENT CHARGES COLLECTION & ADMINISTRATION
i.
DC Amount Payable and Date of Payment
The total amount of a DC is the amount of the DC that would be determined under the by-law
on the day of an application for site plan approval or the day of an application for rezoning or,
if neither of these apply, the day of building permit issuance. Full details on determining the
DCs payable in any particular case are provided in s.26 and s.26.2 of the DCA.
The default date of payment of a DC is the date of building permit issuance. However,
under s.27 of the DCA the Township may enter into an agreement with a developer to alter
the timing of payment.
For three specific types of development DCs must be paid according to the following plan:
Six equal annual installments beginning at building occupancy (permit or actual
occupancy) and for the following five anniversaries of that date for rental housing
and institutional development.
Twenty-one equal annual installments beginning at building occupancy (permit or
actual occupancy) and for the following twenty anniversaries of that date for non-
profit housing development.
For required instalments, the Township may charge interest from the date the DC would
have been payable to the date the instalment is paid. Interest may accrue on each
installment until the final payment has been made. Any skipped or late payments can be
added to the tax roll (including interest). Full details on the prescribed payment plans are
provided in s.26.1 of the DCA.
ii.
Reserve Funds
Under the DCA, a municipality that has passed a development charge by-law must establish
a separate reserve fund for each service to which the development charge relates and pay
each development charge it collects into the respective reserve fund. While the DCA does
Implementation and Administration | 29
permit municipalities to borrow from the reserve fund, the amount borrowed is to be repaid
with interest at a rate not less than the prescribed minimum interest rate. Additionally,
money in the reserve fund is to be spent only on development-related capital costs.
Annual financial statements are to be provided to Council and must include the following:
Opening and closing balances and in-year transactions
A description of service or category of service
Details on credits paid by individual credit holders
Amounts borrowed and purpose of borrowing
Interest accrued on borrowing
Amount and source of money used to repay borrowing
Projects funded from DCs including amount and source of DC and non-DC
funding
Statutory and non-statutory exemptions should be funded from non-DC sources. As the
Township does not currently impose DCs, no development charges funds are available in
reserve to help offset any project cost in this study.
iii.
Recommendations
As required under the DCA, the Township should codify any rules regarding
application of the by-law and exemptions within the DC by-law proposed for
adoption.
It is recommended that Council adopt the development-related capital forecast
included in this Background Study, subject to annual review through the Township's
normal capital budget process.
It is recommended that limited exemptions, other than those required in the DCA,
be formally adopted in the by-laws.
It is recommended that the Township adopt indexing provisions in the by-law so as
to ensure that the DC rates incorporate inflationary increases over the by-law term.
APPENDIX A
DEVELOPMENT FORECAST
Appendix A: Development Forecast | 30
DEVELOPMENT FORECAST
This appendix summarizes the development forecast used to prepare the 2021
Development Charges Background Study for the Township of Perth East. The forecast
results are presented in the following tables:
Historical Development
Table 1
Historical Population, Occupied Households & Employment
Summary
Table 2
Historical Annual Building Permits
Table 3
Historical Households by Period of Construction Showing Household
Size
Forecast Development
Table 4
Population, Household & Employment Forecast Summary
Table 5
Forecast of Household Growth by Unit Type
Table 6
Forecast Population Growth in New Households by Unit Type
Table 7
Forecast Non-Residential Space (Square Metres of Gross Floor
Area)
A.
FORECAST APPROACH AND KEY ASSUMPTIONS
The Development Charges Act (DCA) requires the Township to estimate "the anticipated
amount, type and location of development" for which development charges may be
imposed. The forecast must cover both residential and non-residential development and be
specific enough with regards to the quantum, type, location and timing of such development
to allow the Township to prepare a reasonable development-related capital program.
A 10-year development time horizon, from 2021 to 2030, has been used to calculate the
development charges for general services considered under this study and a longer-term
horizon, to 2046, for Services Related to a Highway, Water and Wastewater services. The
forecast was prepared consistent with those projections contained in the County of Perth
Official Plan Update - Comprehensive Review dated April 2020 prepared by Watson and
Associates Economists Ltd.
Appendix A: Development Forecast | 31
B.
HISTORICAL DEVELOPMENT IN THE TOWNSHIP
Historical growth figures presented in Table 1 are based on Statistics Canada Census and
building permit data. Figures shown in the development forecast represent mid-year
estimates. A "Census-based" definition of population is used for the purposes of the
development charges study. This definition does not include the Census net undercoverage,
which represents those who were missed or double-counted by the Census.
For development charges purposes, a ten year historical period of 2011 to 2020 is used for
calculating historical service levels. Since 2016 was the last year of the Census, figures
from 2017 to 2020 are estimated.
Table 1 shows that the Township of Perth East experienced a modest increase in
population growth since 2011. The Township's population increased by 460 over the last
decade, from 12,000 in 2011 to 12,460 in 2020.
Historical employment figures are also shown in Table 1 and are based on Statistics
Canada place of work data. "Place of Work Employment" figures record where people work
rather than their place of residence. It includes all employment with a regular or no fixed
place of work but excludes those who work at home.
Following a similar growth pattern to that of population, the Township's employment
increased between 2011 and 2020--by about 930 jobs--with most growth occurring before
2016. The Township's current activity rate is 28 per cent which has increased over the last
decade from 22 per cent in 2011.
As with the recent population and employment growth, the number of occupied dwellings in
the Township increased from 3,900 in 2011 to about 4,140 in 2020. The dominant type of
housing in Perth East is the single and semi-detached homes, which accounts for nearly all
the unit types. That said, recent building permit data does indicate a shift towards more row
and apartment unit construction.
Table 3 provides details on historical occupancy patterns for permanently occupied
households in Perth East. Occupancy levels for recently constructed single and semi-
detached units, between 2006 and 2016, are often higher than the overall average and are
generally used to support the development charges calculations since they better reflect the
number of people that are likely to reside in new development. The average PPU of single
detached units built in the Township in the period 2006 to 2016 is 2.93. For the purpose of
this study, PPU levels of 2.00 and 1.50 are assumed for row units and apartments
respectively as limited data on new construction units exist.
Appendix A: Development Forecast | 32
C.
FORECAST METHOD AND RESULTS
This section describes the method used to establish the 10-year development charges
forecast for the 2021-2030 planning period and longer-term forecast.
Development charges are levied on residential development as a charge per new unit.
Therefore, for the residential forecast, a projection of both the population growth1 as well
as the population in new housing units, is required.
Population growth determines the need for additional facilities and provides the foundation
for the development-related capital program. When calculating the development charge,
however, the development-related net capital costs are spread over the total additional
population that occupy new housing units. This population in new units represents the
population from which development charges will be collected.
Development charges are levied on non-residential development as a charge per square
metre of gross floor area (GFA). As with the residential forecast, the non-residential
forecast requires both a projection of employment growth as well as a projection of the
employment growth associated with new floor space in the Township.
i.
Residential Forecast
The residential development forecast incorporates anticipated growth in population and
occupied dwelling units by type. As detailed in Table 4, the Township's Census population is
forecast to grow from 12,460 in 2020 to 12,640 in 2030 and 12,800 by 2046.
The number of occupied housing units is forecast to increase from by 157 units from 4,143
in 2020 to 4,300 in 2030. This reflects an average annual increase of 15 occupied dwelling
units per year or a 4 per cent increase in occupied dwelling units over the time horizon to
2030. Over the longer-term, the number of occupied dwellings is anticipated to reach 4,460
units by 2046 (an increase of 317 units from 2020).
A breakdown of anticipated housing by unit type in the Township is shown in Table 5. The
mix of new housing is indicating a shift to more medium to high-density dwelling units, with
the largest share of housing (67 per cent) being single or semi-detached unit types in the
next ten-years. Over the longer-term, the type of new dwelling units is expected to
1 Commonly referred to as "net population growth" in the context of development charges.
Appendix A: Development Forecast | 33
transition further to medium and higher-density dwelling units from single and semi-
detached dwellings.
Population growth in the new units is estimated by applying the following PPUs to the
housing unit forecast: 2.93 for single and semi-detached units; 2.00 for rows; and 1.50 for
apartments. The assumptions are informed by the historical occupancy patterns for
permanently occupied single/semi detached units as set out in Table 3 and, due to the
limited data on recently constructed units in the Township, historical trends related to row
and apartment occupancy patterns in other communities.
The total forecast population in new housing units over the 2021 to 2030 period is 390 and
748 for growth over the longer-term to 2046 (see Table 6). Nearly 95% of all growth is
anticipated to occur in the Township's urban serviced areas of Milverton and Shakespeare.
ii.
Non-Residential Forecast
Non-residential development charges are calculated on a per unit of gross floor area basis.
Therefore, as per the DCA, a forecast of future non-residential building space has been
developed. As with the residential forecast, the GFA forecast covers the 10-year period from
2021 to 2030 for general services and 2021-2046 for engineered services. This forecast is
shown in Table 7.
Place of work employment is forecast to increase by 394 over the planning period to 2030
and 666 by 2046.
An assumed floor space per worker (FSW) is applied to the employment forecast numbers
in order to forecast growth in new non-residential space in the Township. The overall
growth in new non-residential building space across the Township of Perth East between
2021 and 2030 is 23,622 square metres and 39,942 square metres between 2021 and 2046.
Nearly 95% of all growth is anticipated to occur in the Township's urban serviced areas.
Appendix A: Development Forecast | 34
APPENDIX A
TOWNSHIP OF PERTH EAST
HISTORICAL POPULATION, OCCUPIED HOUSEHOLDS & EMPLOYMENT SUMMARY
Household
Mid-Year
Growth
Growth
PPU
Growth
Activity Rate
2011
12,000
3,900
3.08
2,590
22%
2012
12,059
59
3,920
20
3.08
2,720
130
23%
2013
12,119
60
3,940
20
3.08
2,857
137
24%
2014
12,179
60
3,960
20
3.08
3,001
144
25%
2015
12,239
60
3,980
20
3.08
3,152
151
26%
2016
12,300
61
4,000
20
3.08
3,310
158
27%
2017
12,340
40
4,035
35
3.06
3,362
52
27%
2018
12,380
40
4,071
36
3.04
3,415
53
28%
2019
12,420
40
4,107
36
3.02
3,469
54
28%
2020
12,460
40
4,143
36
3.01
3,524
55
28%
Growth 2011-2020
460
243
934
Source: Statistics Canada, Census of Canada; Hemson Estimates based on Perth County Revised Official Plan Update - Comprehensive Review (2020)
Note: Activity rate is based on ratio of number of employees to census population.
Note: census figures are rounded.
TABLE 1
Employment by
Place of Work
(POW)
Census
Population
Occupied
Households
Appendix A: Development Forecast | 35
APPENDIX A
TABLE 2
TOWNSHIP OF PERTH EAST
HISTORICAL ANNUAL BUILDING PERMITS BY TYPE
Mid-Year
Singles & Semis
Rows
Apts.
Total
Singles & Semis
Rows
Apts.
Total
2011
34
5
1
40
85%
13%
3%
100%
2012
13
-
-
13
100%
0%
0%
100%
2013
33
-
1
34
97%
0%
3%
100%
2014
26
-
5
31
84%
0%
16%
100%
2015
28
-
-
28
100%
0%
0%
100%
2016
25
4
6
35
71%
11%
17%
100%
2017
56
4
5
65
86%
6%
8%
100%
2018
64
4
-
68
94%
6%
0%
100%
2019
67
3
10
80
84%
4%
13%
100%
2020
40
6
-
46
87%
13%
0%
100%
Growth 2011 - 2020
386
26
28
440
88%
6%
6%
100%
5 Year Avg.
47
4
4
54
Annual Housing Building Permits - Units
Building Permits - Shares By Unit Type
Appendix A: Development Forecast | 36
APPENDIX A
TABLE 3
TOWNSHIP OF PERTH EAST
HISTORICAL HOUSEHOLDS BY PERIOD OF CONSTRUCTION SHOWING HOUSEHOLD SIZE
Period of Construction
Period of Construction Summaries
Dwelling Unit Type
Pre 1945
1946-1960
1961-1970
1971-1980
1981-1990
1991-1995
1996-2000
2001-2005
2006-2010
2011-2016
Pre 2006
2006-2016
Total
Singles and Semis
Household Population
4,765
725
1,015
1,410
1,055
585
500
595
355
290
10,650
645
11,295
Households
1,470
305
370
480
365
170
175
175
110
110
3,510
220
3,730
Household Size
3.24
2.38
2.74
2.94
2.89
3.44
2.86
3.40
3.23
2.64
3.03
2.93
3.03
Rows
Household Population
0
0
0
25
0
0
0
0
0
25
25
25
50
Households
10
0
10
15
10
0
0
0
0
25
45
25
70
Household Size
0.00
0.00
0.00
1.67
0.00
0.00
0.00
0.00
0.00
1.00
0.56
1.00
0.71
Apartments
Household Population
160
35
0
40
35
0
0
0
0
0
270
0
270
Households
75
15
25
35
15
0
25
0
0
0
190
0
190
Household Size
2.13
2.33
0.00
1.14
2.33
0.00
0.00
0.00
0.00
0.00
1.42
0.00
1.42
All Units (excl. Duplexes)
Household Population
4,925
760
1,015
1,475
1,090
585
500
595
355
315
10,945
670
11,615
Households
1,555
320
405
530
390
170
200
175
110
135
3,745
245
3,990
Household Size
3.17
2.38
2.51
2.78
2.79
3.44
2.50
3.40
3.23
2.33
2.92
2.73
2.91
Source: Statistics Canada, 2016 National Household Survey Special Run.
Appendix A: Development Forecast | 37
Census
Census
Employment
Employment by
Mid-Year
Population
Pop'n Growth
by POW
POW Growth
Activity Rate
2021
12,500
40
4,180
37
2.99
3,580
56
28.6%
2022
12,520
20
4,196
16
2.98
3,629
49
29.0%
2023
12,540
20
4,212
16
2.98
3,678
49
29.3%
2024
12,560
20
4,228
16
2.97
3,728
50
29.7%
2025
12,580
20
4,244
16
2.96
3,779
51
30.0%
2026
12,600
20
4,260
16
2.96
3,830
51
30.4%
2027
12,610
10
4,270
10
2.95
3,852
22
30.5%
2028
12,620
10
4,280
10
2.95
3,874
22
30.7%
2029
12,630
10
4,290
10
2.94
3,896
22
30.8%
2030
12,640
10
4,300
10
2.94
3,918
22
31.0%
2031
12,650
10
4,310
10
2.94
3,940
22
31.1%
2032
12,660
10
4,318
8
2.93
3,958
18
31.3%
2033
12,670
10
4,326
8
2.93
3,976
18
31.4%
2034
12,680
10
4,334
8
2.93
3,994
18
31.5%
2035
12,690
10
4,342
8
2.92
4,012
18
31.6%
2036
12,700
10
4,350
8
2.92
4,030
18
31.7%
2037
12,710
10
4,360
10
2.92
4,044
14
31.8%
2038
12,720
10
4,370
10
2.91
4,058
14
31.9%
2039
12,730
10
4,380
10
2.91
4,072
14
32.0%
2040
12,740
10
4,390
10
2.90
4,086
14
32.1%
2041
12,750
10
4,400
10
2.90
4,100
14
32.2%
2042
12,760
10
4,412
12
2.89
4,118
18
32.3%
2043
12,770
10
4,424
12
2.89
4,136
18
32.4%
2044
12,780
10
4,436
12
2.88
4,154
18
32.5%
2045
12,790
10
4,448
12
2.88
4,172
18
32.6%
2046
12,800
10
4,460
12
2.87
4,190
18
32.7%
Growth 2021-2030
180
157
394
Growth 2021-2046
340
317
666
Source: Perth County Revised Official Plan Update - Comprehensive Review (2020)
Note: Census population does not include net undercount; Employment figures do not include work from home
TABLE 4
APPENDIX A
TOWNSHIP OF PERTH EAST
POPULATION, HOUSEHOLD & EMPLOYMENT FORECAST SUMMARY
Occupied
Households
Household
Growth
Household
Size
Appendix A: Development Forecast | 38
TOWNSHIP OF PERTH EAST
FORECAST OF HOUSEHOLD GROWTH BY UNIT TYPE
Annual Growth in Total Occupied Households
Shares By Unit Type
Mid-Year
Singles &
Semis
Rows & Other
Multiples
Apartments
Total New
Households
Singles &
Semis
Rows & Other
Multiples
Apartments
Total
2021
28
2
7
37
77%
6%
18%
100%
2022
12
0
4
16
76%
0%
24%
100%
2023
12
0
4
16
75%
0%
25%
100%
2024
12
0
4
16
75%
0%
25%
100%
2025
12
0
4
16
75%
0%
25%
100%
2026
12
0
4
16
74%
0%
26%
100%
2027
4
2
4
10
41%
20%
39%
100%
2028
4
2
4
10
40%
20%
40%
100%
2029
4
2
4
10
40%
20%
40%
100%
2030
4
2
4
10
40%
20%
40%
100%
2031
4
2
4
10
39%
20%
41%
100%
2032
4
0
4
8
51%
0%
49%
100%
2033
4
0
4
8
50%
0%
50%
100%
2034
4
0
4
8
50%
0%
50%
100%
2035
4
0
4
8
50%
0%
50%
100%
2036
4
0
4
8
49%
0%
51%
100%
2037
4
4
2
10
41%
39%
20%
100%
2038
4
4
2
10
41%
39%
20%
100%
2039
4
4
2
10
40%
40%
20%
100%
2040
4
4
2
10
39%
41%
20%
100%
2041
4
4
2
10
39%
41%
20%
100%
2042
4
6
2
12
35%
48%
17%
100%
2043
4
6
2
12
34%
49%
17%
100%
2044
4
6
2
12
33%
50%
17%
100%
2045
4
6
2
12
33%
51%
16%
100%
2046
4
6
2
13
32%
52%
16%
100%
Growth 2021-2030
104
10
42
157
67%
6%
27%
100%
Growth 2021-2046
168
62
87
317
53%
20%
27%
100%
Source: Perth County Revised Official Plan Update - Comprehensive Review (2020)
TABLE 5
APPENDIX A
Appendix A: Development Forecast | 39
Mid-Year
2021
83
4
10
97
91
80
12
2022
35
0
6
41
38
33
5
2023
35
0
6
41
38
34
5
2024
35
0
6
41
39
34
5
2025
35
0
6
41
39
34
5
2026
35
0
6
42
39
34
5
2027
12
4
6
21
20
17
3
2028
12
4
6
22
20
18
3
2029
12
4
6
22
20
18
3
2030
12
4
6
22
21
18
3
2031
12
4
6
22
21
18
3
2032
12
0
6
17
16
14
2
2033
12
0
6
18
17
14
2
2034
12
0
6
18
17
15
2
2035
12
0
6
18
17
15
2
2036
12
0
6
18
17
15
2
2037
12
8
3
22
21
18
3
2038
12
8
3
22
21
18
3
2039
12
8
3
23
21
19
3
2040
12
8
3
23
22
19
3
2041
12
9
3
23
22
19
3
2042
12
11
3
26
24
21
3
2043
12
12
3
26
25
21
3
2044
12
12
3
27
25
22
3
2045
12
12
3
27
26
22
3
2046
12
13
3
28
26
23
3
Growth 2021-2030
306
20
64
390
366
319
47
Growth 2021-2046
494
124
130
748
703
613
90
*Based on PPUs
2.93
2.00
1.50
Source: Hemson Consulting Ltd., 2021 based on Perth County Revised Official Plan Update - Comprehensive Review (2020)
TABLE 6
APPENDIX A
Singles &
Semis
Rows & Other
Multiples
Apartments
Total Population
in New
Households
Urban Services
Total Population
in New
Households
Total Population
in New
Households -
Milverton
Total Population
in New
Households -
Shakespeare
TOWNSHIP OF PERTH EAST
FORECAST POPULATION GROWTH IN NEW HOUSEHOLDS BY UNIT TYPE*
Appendix A: Development Forecast | 40
All Employment
60.0
m2 per employee
Urban Services
Milverton
Shakesphere
Mid-Year
Emp Growth in
New Space
New Space (m2)
New Space (m2)
New Space (m2)
New Space (m2)
2021
56
3,342
3,142
2,741
401
2022
49
2,940
2,764
2,411
353
2023
49
2,940
2,764
2,411
353
2024
50
3,000
2,820
2,460
360
2025
51
3,060
2,876
2,509
367
2026
51
3,060
2,876
2,509
367
2027
22
1,320
1,241
1,082
158
2028
22
1,320
1,241
1,082
158
2029
22
1,320
1,241
1,082
158
2030
22
1,320
1,241
1,082
158
2031
22
1,320
1,241
1,082
158
2032
18
1,080
1,015
886
130
2033
18
1,080
1,015
886
130
2034
18
1,080
1,015
886
130
2035
18
1,080
1,015
886
130
2036
18
1,080
1,015
886
130
2037
14
840
790
689
101
2038
14
840
790
689
101
2039
14
840
790
689
101
2040
14
840
790
689
101
2041
14
840
790
689
101
2042
18
1,080
1,015
886
130
2043
18
1,080
1,015
886
130
2044
18
1,080
1,015
886
130
2045
18
1,080
1,015
886
130
2046
18
1,080
1,015
886
130
Growth 2021-2030
394
23,622
22,205
19,370
2,835
Growth 2021-2046
666
39,942
37,546
32,753
4,793
Source: Hemson Consulting Ltd., 2021 based on Perth County Revised Official Plan Update - Comprehensive Review (2020)
Total For DC Study
FORECAST NON-RESIDENTIAL SPACE (SQUARE METRES OF GROSS FLOOR AREA)
TOWNSHIP OF PERTH EAST
APPENDIX A
TABLE 7
Appendix A: Development Forecast | 41
APPENDIX B
GENERAL SERVICES
TECHNICAL APPENDIX
Appendix B: General Services Technical Appendix | 42
GENERAL SERVICES TECHNICAL APPENDIX
This appendix provides the detailed analysis undertaken to establish the development
charge rates for each of the eligible general services provided by the Township of Perth
East. Four services have been analysed:
Appendix B.1
Fire Services
Appendix B.2
Library Services
Appendix B.3
Parks & Recreation
Appendix B.4
Development-Related Studies
Every sub-section, with the exception of Development-Related Studies, contains a set of
three tables. The tables provide the background data and analysis undertaken to arrive at
the calculated development charge rates for that particular service. An overview of the
content and purpose of each of the tables is given below.
TABLE 1
HISTORICAL SERVICE LEVELS
Table 1 presents the data used to determine the ten-year historical service level. The DCA
and Ontario Regulation 82/98 require that development charges be set at a level no higher
than the average service level provided in the Township over the ten-year period
immediately preceding the preparation of the background study, on a service by service
basis. For the purpose of this study, the historical inventory period is defined as 2011-2020.
O. Reg. 82/98 requires that when defining and determining historical service levels both the
quantity and quality of service be taken into consideration. In most cases, the service levels
are initially established in quantitative terms. For example, service levels for buildings are
presented in terms of square feet. The qualitative aspect is introduced by considering the
monetary value of the facility or service. In the case of buildings, for example, the cost
would be shown in terms of cost per square foot to replace or construct a facility of the
same quality. This approach helps to ensure that the growth-related capital facilities that
are to be funded by new development reflect not only the quantity (number and size) but
also the quality (replacement value or cost) of service provided by the municipality in the
past. Both the quantitative and qualitative aspects of service levels used in the current
analysis are based on information provided by Township staff. This information is generally
based on historical records and experience with costs to acquire or construct similar
facilities, equipment and infrastructure.
Appendix B: General Services Technical Appendix | 43
Table 1 also shows the calculation of the "maximum allowable" funding envelope. The
maximum allowable is defined as the ten-year average historical service level (expressed as
$/capita or $/population and employment) multiplied by the forecast increase in net
population or net population and employment over the planning period. The resulting figure
is the value of capital infrastructure that must be constructed for that particular service in
order to maintain the ten-year average historical service level.
For those services with only a residential impact (Library and Parks & Recreation), the
service level measure of net population has been utilized. For the remaining services that
levy both a residential and non-residential charge, the service level measure of net
population plus employment has been utilized.
TABLE 2
2021 - 2030 CAPITAL PROGRAM AND CALCULATION OF
"UNADJUSTED" DEVELOPMENT CHARGES
The DCA requires that Council express its intent to provide capital facilities to support
future development. Based on the development forecasts presented in Appendix A,
Township staff in collaboration with consultants, have developed a development-related
capital program that sets out the projects required to service anticipated development for
the 10-year period from 2021-2030.
To determine the share of the program that is eligible for recovery through development
charges, the project costs are reduced by any anticipated grants, subsidies or other
recoveries and "benefit to existing" shares.
A benefit to existing share represents that portion of a capital project that will benefit the
existing community. It could, for example, represent a portion of a new facility that, at least
in part, replaces a facility that is demolished, redeployed or will otherwise not be available
to serve its former function (a "replacement" share). The benefit to existing share of the
capital program is not deemed to be development-related and is therefore removed from
the development charge calculation. The capital cost for benefit to existing shares will
require funding from non-development charge sources, typically property taxes or user fees.
The net capital program less any benefit to existing shares yields the development-related
costs. Although identified as development-related, the development-related capital program
may not be recoverable in full from development charges in the period from 2021 to 2030.
For some of the services, a portion of the capital program will service development that will
not occur until after 2030. This portion of the capital program is either deemed "pre-built"
Appendix B: General Services Technical Appendix | 44
service capacity to be considered as committed excess capacity to be recovered under
future development or represents a future service level increase that is ineligible for
development charge recovery.
The remaining portion of the net capital program represents the development-related cost
that may be included in the development charge calculation. In all cases this amount is
equal to or less than the maximum allowable funding envelope that is calculated on the
final page of Table 1. The result is the discounted development-related net capital cost that
is eligible for recovery through development charges over the forecast period from 2021 to
2030.
i.
Calculation of the Unadjusted Development Charges Rates
The section below the capital program displays the calculation of the "unadjusted"
development charge rates. The term "unadjusted" development charge is used to
distinguish the charge that is calculated prior to cash flow financing considerations. The
cash flow analysis is shown in Table 3.
The first step in determining the unadjusted development charge rate is allocating the
development-related net capital cost between the residential and non-residential sectors.
For Fire Services and Development-Related Studies, the development-related costs have
been apportioned as 50 per cent residential and 50 per cent non-residential. This
apportionment is based on the anticipated shares of population growth in new units and
employment growth in new space over the forecast period to 2030. For Library Services and
Parks & Recreation, the development-related costs have been apportioned as 100 per cent
residential to reflect the need for these facilities is driven entirely by residential
development.
The residential share of the 2021-2030 development charge eligible cost is then divided by
the forecasted population growth in new dwelling units. This gives the unadjusted
residential development charge per capita. The non-residential development-related net
capital cost is divided by the forecasted increase in non-residential gross floor area (GFA).
This yields a charge per square metre of new non-residential development.
TABLE 3
CASH FLOW ANALYSIS
A cash flow analysis is also undertaken to account for the timing of projects and receipt of
development charges. Interest earnings or borrowing costs are accounted for in the
calculation as allowed under the DCA. Based on the development forecast, the analysis
Appendix B: General Services Technical Appendix | 45
calculates the DC rate required to finance the net development-related capital spending
plan, including provisions for any borrowing costs or interest earnings on the reserve funds.
The cash flow analysis is designed such that the closing cash balance at the end of the
planning period is as close to nil as possible.
In order to determine appropriate development charge rates that reflect the borrowing and
earnings that are necessary to support net development-related funding requirement,
assumptions are used for the inflation rate and interest rate. An inflation rate of 2.0 per cent
is adopted for the funding requirements, an interest rate of 5.5 per cent is adopted for
borrowing on the funds, and an interest rate of 3.5 per cent is applied to positive balances.
Table 3 displays the results of the cash flow analysis and provides the adjusted, or final, per
capita residential and per square metre (of GFA) non-residential development charges.
Appendix B: General Services Technical Appendix | 46
APPENDIX B.1
FIRE SERVICES
Appendix B: General Services Technical Appendix | 47
FIRE SERVICES
The following section sets out the 2021-2030 development-related inventory of capital
assets, capital forecast and the calculation of the development charge for Fire Services in
the Township of Perth East. This department currently operates out of three facilities:
Sebringville, Shakespeare, and a new Milverton Station.
TABLE 1
HISTORICAL SERVICE LEVELS
Table 1 displays the ten-year historical inventory for buildings, land, materials, furniture and
equipment, and vehicles for Fire Services. The Fire department operates out of three
branches totalling 21,510 square feet which is valued at $2.99 million. The Township's Fire
Services facilities occupy 2.03 hectares of land valued at approximately $1.02 million. The
replacement value for furniture and equipment in the three stations amounts to
approximately $799,500.
Additionally, the Township owns 13 vehicles including an aerial truck, six fire tankers, two
pickup trucks, two pumpers, and two rescue trucks. The total value of fleet associated with
the Township's Fire department is $6.28 million.
The current replacement value of the inventory of capital assets for Fire Services in the
Township is $11.08 million. This has provided the Township with a ten-year average service
level of $695.01 per capita and employment. Multiplying this historical service level by the
net population and employment growth occurring between 2021 and 2030 (574 persons and
employees) results in a maximum funding envelope of $398,913.
TABLE 2
2021 - 2030 CAPITAL PROGRAM AND CALCULATION OF
"UNADJUSTED" DEVELOPMENT CHARGES
The 2021-2030 Fire Services development-related capital program includes provisions for
an additional rescue truck, a new ladder truck with pump, as well as additional defibrillator
equipment.
The total cost of the capital program is $1.03 million. Of this total program, approximately
$20,000 in grants has been identified and results in a net municipal cost of $1.01 million. A
portion of this total ($675,000) has been removed from the development charge calculation
as a benefit to existing share as it relates to the replacement of an existing fire pumper
Appendix B: General Services Technical Appendix | 48
truck in service. As such, only $334,000 has been brought forward to the development
charge.
The development-related share of the program cost has been allocated 50 per cent and 50
per cent to residential and non-residential development respectively. The residential share
($167,000) is divided by the anticipated growth in population in new units over the planning
period (390 persons) which yields an unadjusted development charge of $428.62 per capita.
Likewise, the non-residential share of the capital program ($167,000) is divided by the
anticipated growth in square metres over the period to 2030 (23,622 sq.m.) which yields an
unadjusted charge of $7.07 per square metre.
TABLE 3
CASH FLOW ANALYSIS
Given the Township does not currently collect development charges, no reserve fund is
available for Library services and the cash flow is opened with a zero balance. After cash
flow considerations, the per capita residential charge and per square metre non-residential
development charge increase to $428.80 and $7.13 respectively. This is a reflection of the
timing of the capital program and anticipated development charges revenues.
FIRE SERVICESSUMMARY
10-year Hist.
2021-2030
Unadjusted
Adjusted
Service Level
Development-Related Capital Program
Development Charge
Development Charge
$/pop & emp
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$695.01
$1,029,000
$334,000
$428.62
$7.07
$428.80
$7.13
Appendix B: General Services Technical Appendix | 49
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
FIRE SERVICES
BUILDINGS
UNIT COST
Station Name
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/sq. ft.)
Milverton
4,860
4,860
4,860
4,860
4,860
4,860
4,860
-
-
-
$145
Milverton (New)
-
-
-
-
-
-
-
8,700
8,700
8,700
$130
Sebringville
6,310
6,310
6,310
6,310
6,310
6,310
6,310
6,310
6,310
6,310
$145
Shakespeare
6,500
6,500
6,500
6,500
6,500
6,500
6,500
6,500
6,500
6,500
$145
Total (sq.ft.)
17,670
17,670
17,670
17,670
17,670
17,670
17,670
21,510
21,510
21,510
Total ($000)
$2,562.2
$2,562.2
$2,562.2
$2,562.2
$2,562.2
$2,562.2
$2,562.2
$2,988.5
$2,988.5
$2,988.5
LAND
UNIT COST
Station Name
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/ha)
Milverton
0.43
0.43
0.43
0.43
0.43
0.43
0.43
-
-
-
$500,000
Miverton (New)
-
-
-
-
-
-
-
0.90
0.90
0.90
$500,000
Sebringville
0.82
0.82
0.82
0.82
0.82
0.82
0.82
0.82
0.82
0.82
$500,000
Shakespeare
0.31
0.31
0.31
0.31
0.31
0.31
0.31
0.31
0.31
0.31
$500,000
Total (ha)
1.56
1.56
1.56
1.56
1.56
1.56
1.56
2.03
2.03
2.03
Total ($000)
$778.3
$778.3
$778.3
$778.3
$778.3
$778.3
$778.3
$1,015.4
$1,015.4
$1,015.4
APPENDIX B.1
TABLE 1 - PAGE 1
# of Square Feet
# of Hectares
Appendix B: General Services Technical Appendix | 50
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
FIRE SERVICES
FURNITURE & EQUIPMENT
Description
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Generators
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
$40,000
Defibrillators
$6,750
$6,750
$6,750
$6,750
$6,750
$6,750
$6,750
$6,750
$6,750
$6,750
Auto Extrication Equipment
$20,000
$20,000
$20,000
$47,720
$47,720
$47,720
$47,720
$47,720
$47,720
$47,720
Breathing Air Compressor
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
Radios
$105,000
$105,000
$105,000
$105,000
$105,000
$105,000
$105,000
$105,000
$105,000
$105,000
Bunker Gear
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
Station Furniture and Fixtures
$310,000
$310,000
$310,000
$310,000
$310,000
$310,000
$310,000
$375,000
$375,000
$375,000
Small Equipment (nozles, air comp, )
$65,000
$65,000
$65,000
$65,000
$65,000
$65,000
$65,000
$65,000
$65,000
$65,000
Total ($000)
$706.8
$706.8
$706.8
$734.5
$734.5
$734.5
$734.5
$799.5
$799.5
$799.5
VEHICLES
UNIT COST
Vehicle Type
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/vehicle)
Aerial Trucks - 50ft
1
1
1
1
1
-
-
-
-
-
$750,000
Aerial Trucks - 78ft
-
-
-
-
-
1
1
1
1
1
$1,000,000
Fire Tankers
6
6
6
6
6
6
6
6
6
6
$580,000
Pickup Trucks
1
1
1
2
2
2
2
2
2
2
$49,000
Pumpers
3
3
3
3
3
2
2
2
2
2
$675,000
Rescue Trucks
1
1
1
1
2
2
2
2
2
2
$175,000
Total (#)
12
12
12
13
14
13
13
13
13
13
Total ($000)
$6,479.0
$6,479.0
$6,479.0
$6,528.0
$6,703.0
$6,278.0
$6,278.0
$6,278.0
$6,278.0
$6,278.0
# of Vehicles
APPENDIX B.1
TABLE 1 - PAGE 2
Total Value of Furniture & Equipment ($)
Appendix B: General Services Technical Appendix | 51
APPENDIX B.1
TOWNSHIP OF PERTH EAST
CALCULATION OF SERVICE LEVELS
FIRE SERVICES
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Historical Population
12,000
12,059
12,119
12,179
12,239
12,300
12,340
12,380
12,420
12,460
Historical Employment
2,590
2,720
2,857
3,001
3,152
3,310
3,362
3,415
3,469
3,524
Total Historical Population & Employment
14,590
14,779
14,976
15,180
15,391
15,610
15,702
15,795
15,889
15,984
INVENTORY SUMMARY ($000)
Buildings
$2,562.2
$2,562.2
$2,562.2
$2,562.2
$2,562.2
$2,562.2
$2,562.2
$2,988.5
$2,988.5
$2,988.5
Land
$778.3
$778.3
$778.3
$778.3
$778.3
$778.3
$778.3
$1,015.4
$1,015.4
$1,015.4
Furniture & Equipment
$706.8
$706.8
$706.8
$734.5
$734.5
$734.5
$734.5
$799.5
$799.5
$799.5
Vehicles
$6,479.0
$6,479.0
$6,479.0
$6,528.0
$6,703.0
$6,278.0
$6,278.0
$6,278.0
$6,278.0
$6,278.0
Total ($000)
$10,526.2
$10,526.2
$10,526.2
$10,602.9
$10,777.9
$10,352.9
$10,352.9
$11,081.3
$11,081.3
$11,081.3
Average
SERVICE LEVEL ($/population & employment)
Service
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Level
Buildings
$175.61
$173.36
$171.08
$168.78
$166.47
$164.14
$163.17
$189.20
$188.08
$186.96
$174.69
Land
$53.34
$52.66
$51.97
$51.27
$50.57
$49.86
$49.56
$64.29
$63.91
$63.53
$55.09
Furniture & Equipment
$48.44
$47.82
$47.19
$48.38
$47.72
$47.05
$46.78
$50.62
$50.32
$50.02
$48.43
Vehicles
$444.07
$438.39
$432.63
$430.04
$435.51
$402.18
$399.82
$397.47
$395.11
$392.77
$416.80
Total ($/pop & empl)
$721.46
$712.24
$702.87
$698.48
$700.27
$663.22
$659.33
$701.57
$697.42
$693.27
$695.01
CALCULATION OF MAXIMUM ALLOWABLE FUNDING ENVELOPE
TOWNSHIP OF PERTH EAST
10-Year Funding Envelope Calculation
10-Year Average Service Level 2011 - 2020
$695.01
Net Population & Employment Growth 2021 - 2030
574
Maximum Allowable Funding Envelope
$398,913
TABLE 1 - PAGE 3
Appendix B: General Services Technical Appendix | 52
Gross
Grants/
Net
Ineligible Cost
Total
DC Eligible Costs
Service
Timing
Project
Subsidies/Other
Municipal
Replacement
DC Eligible
Available DC
2021-
Post
Cost
Recoveries
Cost
& BTE Share
Costs
Reserves
2030
2030
1.0
FIRE SERVICES
1.1 Fleet
1.1.1 Rescue Truck
2022
175,000
$
20,000
$
155,000
$
-
$
155,000
$
-
$
155,000
$
-
$
1.1.2 New Ladder Truck with Pump
2028
850,000
$
-
$
850,000
$
675,000
$
175,000
$
-
$
175,000
$
-
$
Subtotal Fleet
1,025,000
$
20,000
$
1,005,000
$
675,000
$
330,000
$
-
$
330,000
$
-
$
1.2 Equipment
1.2.1 Additional Defibrulator Equipment
2022
2,000
$
-
$
2,000
$
-
$
2,000
$
-
$
2,000
$
-
$
1.2.2 Additional Defibrulator Equipment
2028
2,000
$
-
$
2,000
$
-
$
2,000
$
-
$
2,000
$
-
$
Subtotal Equipment
4,000
$
-
$
4,000
$
-
$
4,000
$
-
$
4,000
$
-
$
TOTAL FIRE SERVICES
1,029,000
$
20,000
$
1,009,000
$
675,000
$
334,000
$
-
$
334,000
$
-
$
Residential Development Charge Calculation
Residential Share of 2021-2030 DC Eligible Costs
50%
$167,000
2021 - 2030 Net Funding Envelope
$398,913
10 Year Growth in Population in New Units
390
Unadjusted Development Charge Per Capita ($)
$428.62
Reserve Fund Balance
$0
Non-Residential Development Charge Calculation
Non-Residential Share of 2021-2030 DC Eligible Costs
50%
$167,000
10 Year Growth in Square Meters
23,622
Unadjusted Development Charge Per Sq.M ($)
$7.07
APPENDIX B.1
TABLE 2
TOWNSHIP OF PERTH EAST
DEVELOPMENT-RELATED CAPITAL PROGRAM
FIRE SERVICES
Appendix B: General Services Technical Appendix | 53
TABLE 3 - PAGE 1
FIRE SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
TOTAL
OPENING CASH BALANCE ($000)
0.0
42.4
(20.1)
(2.6)
16.3
36.5
57.8
70.3
(20.8)
(10.8)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Fire Services : Non Inflated
$0.00
$78.50
$0.00
$0.00
$0.00
$0.00
$0.00
$88.50
$0.00
$0.00
$167.00
Fire Services: Inflated
$0.00
$80.07
$0.00
$0.00
$0.00
$0.00
$0.00
$101.66
$0.00
$0.00
$181.73
POPULATION GROWTH
- Population in New Units
97
41
41
41
41
42
21
22
22
22
390
REVENUE - current ($000)
- Dev. Charge Receipts
41.7
17.8
18.3
18.7
19.2
19.7
10.3
10.6
10.9
11.2
$178.49
- Interest on Opening Balance
0.0
1.5
(1.1)
(0.1)
0.6
1.3
2.0
2.5
(1.1)
(0.6)
$4.83
- Interest on In-year Transactions (excl.int.)
0.7
(1.7)
0.3
0.3
0.3
0.3
0.2
(2.5)
0.2
0.2
($1.59)
TOTAL REVENUE
42.4
17.6
17.5
18.9
20.1
21.4
12.5
10.6
10.0
10.8
$181.73
CLOSING CASH BALANCE
42.4
(20.1)
(2.6)
16.3
36.5
57.8
70.3
(20.8)
(10.8)
0.0
2021 Adjusted Charge Per Capita
$428.80
Allocation of Capital Program
Residential Sector
50.0%
Non-Residential Sector
50.0%
Rates for 2021
Inflation Rate
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
APPENDIX B.1
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
RESIDENTIAL DEVELOPMENT CHARGE
FIRE SERVICES
Appendix B: General Services Technical Appendix | 54
FIRE SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
TOTAL
OPENING CASH BALANCE ($000)
$0.00
$24.24
($35.21)
($14.96)
$7.31
$31.59
$57.20
$69.98
($20.91)
($10.85)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Fire Services : Non Inflated
$0.00
$78.50
$0.00
$0.00
$0.00
$0.00
$0.00
$88.50
$0.00
$0.00
$167.00
Fire Services: Inflated
$0.00
$80.07
$0.00
$0.00
$0.00
$0.00
$0.00
$101.66
$0.00
$0.00
$181.73
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
3,342
2,940
2,940
3,000
3,060
3,060
1,320
1,320
1,320
1,320
23,622
REVENUE - current ($000)
- Dev. Charge Receipts
$23.8
$21.4
$21.8
$22.7
$23.6
$24.1
$10.6
$10.8
$11.0
$11.2
$181.08
- Interest on Opening Balance
0.0
0.8
(1.9)
(0.8)
0.3
1.1
2.0
2.4
(1.2)
(0.6)
$2.15
- Interest on In-year Transactions (excl.int.)
0.4
(1.6)
0.4
0.4
0.4
0.4
0.2
(2.5)
0.2
0.2
($1.51)
TOTAL REVENUE
24.2
20.6
20.3
22.3
24.3
25.6
12.8
10.8
10.1
10.8
$181.73
CLOSING CASH BALANCE
24.2
(35.2)
(15.0)
7.3
31.6
57.2
70.0
(20.9)
(10.8)
(0.0)
Allocation of Capital Program
2021 Adjusted Charge Per Square Metre
$7.13
Residential Sector
50.0%
Non-Residential Sector
50.0%
Rates for 2021
Inflation Rate:
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
TABLE 3 - PAGE 2
APPENDIX B.1
FIRE SERVICES
NON-RESIDENTIAL DEVELOPMENT CHARGE
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
Appendix B: General Services Technical Appendix | 55
APPENDIX B.2
LIBRARY SERVICES
Appendix B: General Services Technical Appendix | 56
LIBRARY SERVICES
The following section sets out the 2021-2030 development-related inventory of capital
assets, capital forecast and the calculation of the development charge for Library Services
in the Township of Perth East. Given all Township residents have access to the Library, the
benefits of the Library Services are deemed to be Township-wide for the purpose of
calculating the development charge.
TABLE 1
HISTORICAL SERVICE LEVELS
Table 1 displays the ten-year historical inventory for buildings, land, materials, furniture and
equipment for Library Services. The Library operates out of one 5,350 square foot branch on
Mill Street which was constructed in 2010. Building replacement costs for the branch
amounts to $909,500. The Perth East Public Library occupies 0.28 hectares of land which is
valued at approximately $140,000.
Collection materials in the Library system include books and audiovisual materials. The
materials have a combined value of $247,600. Furniture and equipment including the
circulation system add approximately $85,500 to the total value of the Library inventory.
The 2020 total replacement value of the inventory of capital assets for Library Services in
the Township of Perth East is $1.38 million, resulting in a ten-year historical average service
level of $112.88 per capita. The historical service level, multiplied by the net population
growth to 2030 (180 persons), yields a maximum allowable funding envelope of $20,348.
TABLE 2
2021 - 2030 CAPITAL PROGRAM AND CALCULATION OF
"UNADJUSTED" DEVELOPMENT CHARGES
As shown in Table 2, the 2021-2030 Library services capital program includes a $20,000
provision for additional collection material purchased over the planning period. Given no
grants, subsidies, or benefit to existing shares have been identified, the full cost of the
capital program has been brought forward to the development charge calculation.
The full cost of the capital program has been allocated 100 per cent to new residential
development. The share, $20,000, is divided by the anticipated growth in population in new
units over the planning period (390 persons). This yields an unadjusted development charge
of $51.33 per capita.
Appendix B: General Services Technical Appendix | 57
TABLE 3
CASH FLOW ANALYSIS
After cash flow considerations, the residential development charge decreases from $51.33
to $50.50 per capita. Table 3 summarizes the final calculation of the development charge for
Library Services.
LIBRARY SERVICES SUMMARY
10-year Hist.
2021-2030
Service Level
$/pop & emp
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$112.88
$20,000
$20,000
$51.33
$0.00
$50.50
$0.00
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Development Charge
Appendix B: General Services Technical Appendix | 58
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
LIBRARY SERVICES
BUILDINGS
UNIT COST
Branch Name
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/sq.ft.)
Perth East Public Library (Mill Street)
5,350
5,350
5,350
5,350
5,350
5,350
5,350
5,350
5,350
5,350
$170
Total (sq.ft.)
5,350
5,350
5,350
5,350
5,350
5,350
5,350
5,350
5,350
5,350
Total ($000)
$909.5
$909.5
$909.5
$909.5
$909.5
$909.5
$909.5
$909.5
$909.5
$909.5
LAND
UNIT COST
Branch Name
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/ha)
Perth East Public Library (Mill Street)
0.28
0.28
0.28
0.28
0.28
0.28
0.28
0.28
0.28
0.28
$500,000
Total (ha)
0.28
0.28
0.28
0.28
0.28
0.28
0.28
0.28
0.28
0.28
Total ($000)
$140.0
$140.0
$140.0
$140.0
$140.0
$140.0
$140.0
$140.0
$140.0
$140.0
COLLECTION MATERIALS
Type of Collection
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Books and Audiovisual Materials
$247,570
$247,570
$247,570
$247,570
$247,570
$247,570
$247,570
$247,570
$247,570
$247,570
Total ($000)
$247.6
$247.6
$247.6
$247.6
$247.6
$247.6
$247.6
$247.6
$247.6
$247.6
FURNITURE AND EQUIPMENT
Description
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Furniture and Equipment
$75,480
$75,480
$75,480
$75,480
$75,480
$75,480
$75,480
$75,480
$75,480
$75,480
Circulation System
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
Total ($000)
$85.5
$85.5
$85.5
$85.5
$85.5
$85.5
$85.5
$85.5
$85.5
$85.5
APPENDIX B.2
TABLE 1 - PAGE 1
Total Value of Furniture and Equipment ($)
Value of Collection Materials
# of Hectares
# of Square Feet
Appendix B: General Services Technical Appendix | 59
TOWNSHIP OF PERTH EAST
CALCULATION OF SERVICE LEVELS
LIBRARY SERVICES
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Historic Population
12,000
12,059
12,119
12,179
12,239
12,300
12,340
12,380
12,420
12,460
INVENTORY SUMMARY ($000)
Buildings
$909.5
$909.5
$909.5
$909.5
$909.5
$909.5
$909.5
$909.5
$909.5
$909.5
Land
$140.0
$140.0
$140.0
$140.0
$140.0
$140.0
$140.0
$140.0
$140.0
$140.0
Collection Materials
$247.6
$247.6
$247.6
$247.6
$247.6
$247.6
$247.6
$247.6
$247.6
$247.6
Furniture And Equipment
$85.5
$85.5
$85.5
$85.5
$85.5
$85.5
$85.5
$85.5
$85.5
$85.5
Total ($000)
$1,382.6
$1,382.6
$1,382.6
$1,382.6
$1,382.6
$1,382.6
$1,382.6
$1,382.6
$1,382.6
$1,382.6
Average
SERVICE LEVEL ($/capita)
Service
Level
Buildings
$75.79
$75.42
$75.05
$74.68
$74.31
$73.94
$73.70
$73.47
$73.23
$73.00
$74.26
Land
$11.67
$11.61
$11.55
$11.50
$11.44
$11.38
$11.35
$11.31
$11.27
$11.24
$11.43
Collection Materials
$20.63
$20.53
$20.43
$20.33
$20.23
$20.13
$20.06
$20.00
$19.93
$19.87
$20.21
Furniture And Equipment
$7.12
$7.09
$7.05
$7.02
$6.98
$6.95
$6.93
$6.90
$6.88
$6.86
$6.98
Total ($/capita)
$115.21
$114.65
$114.08
$113.52
$112.96
$112.40
$112.04
$111.68
$111.32
$110.96
$112.88
CALCULATION OF MAXIMUM ALLOWABLE FUNDING ENVELOPE
TOWNSHIP OF PERTH EAST
10-Year Funding Envelope Calculation
10 Year Average Service Level 2011 - 2020
$112.88
Net Population Growth 2021 - 2030
180
Maximum Allowable Funding Envelope
$20,348
TABLE 1 - PAGE 2
APPENDIX B.2
Appendix B: General Services Technical Appendix | 60
Gross
Grants/
Net
Ineligible Cost
Total
DC Eligible Costs
Service
Timing
Project
Subsidies/Other
Municipal
Replacement
DC Eligible
Available DC
2021-
Post
Cost
Recoveries
Cost
& BTE Share
Costs
Reserves
2030
2030
2.0
LIBRARY SERVICES
2.1 Collection Materials
2.1.1 New Materials
various
20,000
$
-
$
20,000
$
-
$
20,000
$
-
$
20,000
$
-
$
20,000
$
-
$
20,000
$
-
$
20,000
$
-
$
20,000
$
-
$
TOTAL LIBRARY SERVICES
20,000
$
-
$
20,000
$
-
$
20,000
$
-
$
20,000
$
-
$
Residential Development Charge Calculation
Residential Share of 2021-2030 DC Eligible Costs
100%
$20,000
2021 - 2030 Net Funding Envelope
$20,348
10 Year Growth in Population in New Units
390
Unadjusted Development Charge Per Capita ($)
$51.33
Reserve Fund Balance
$0
Non-Residential Development Charge Calculation
Non-Residential Share of 2021-2030 DC Eligible Costs
0%
-
$
10 Year Growth in Square Meters
23,622
Unadjusted Development Charge Per Sq.M ($)
$0.00
LIBRARY SERVICES
APPENDIX B.2
TABLE 2
TOWNSHIP OF PERTH EAST
DEVELOPMENT-RELATED CAPITAL PROGRAM
Appendix B: General Services Technical Appendix | 61
LIBRARY SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
TOTAL
OPENING CASH BALANCE ($000)
0.0
3.0
3.1
3.3
3.5
3.7
4.0
3.0
2.1
1.1
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Library Services : Non Inflated
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$2.00
$20.0
Library Services: Inflated
$2.00
$2.04
$2.08
$2.12
$2.16
$2.21
$2.25
$2.30
$2.34
$2.39
$21.9
POPULATION GROWTH
- Population in New Units
97
41
41
41
41
42
21
22
22
22
390
REVENUE - current ($000)
- Dev. Charge Receipts
4.9
2.1
2.2
2.2
2.3
2.3
1.2
1.2
1.3
1.3
$21.0
- Interest on Opening Balance
0.0
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.0
$0.9
- Interest on In-year Transactions (excl.int.)
0.1
0.0
0.0
0.0
0.0
0.0
(0.0)
(0.0)
(0.0)
(0.0)
($0.1)
TOTAL REVENUE
5.0
2.2
2.3
2.3
2.4
2.5
1.3
1.3
1.3
1.3
$21.9
CLOSING CASH BALANCE
3.0
3.1
3.3
3.5
3.7
4.0
3.0
2.1
1.1
0.0
2021 Adjusted Charge Per Capita
$50.50
Allocation of Capital Program
Residential Sector
100.0%
Non-Residential Sector
0.0%
Rates for 2021
Inflation Rate
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
TABLE 3
APPENDIX B.2
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
LIBRARY SERVICES
RESIDENTIAL DEVELOPMENT CHARGE
Appendix B: General Services Technical Appendix | 62
APPENDIX B.3
PARKS & RECREATION
Appendix B: General Services Technical Appendix | 63
PARKS & RECREATION
The Township provides a variety of parks and playgrounds for its residents. The benefits of
Parks & Recreation are deemed to be Township-wide for the purpose of calculating the
development charge.
TABLE 1
HISTORICAL SERVICE LEVELS
The ten-year historical inventory for buildings, land, equipment and facilities in the
Township are set out in Table 1. Shakespeare Hall and PERC are the two indoor buildings
included in the Parks & Recreation inventory. These buildings have a combined floor area of
64,460 square feet and are valued at $10.96 million. These buildings occupy 1.57 hectares
of land which is valued at $784,700. An additional $1.19 million is added to the calculation
to account for the replacement cost of the existing furniture and equipment. Finally, $1.22
million is added to the historical inventory calculation to account for park buildings such as
pavilions, gazebos, and washrooms.
The Township's Parks & Recreation department also oversees 17.2 hectares of parkland
development valued at $857,700 and park amenities (i.e. playgrounds, baseball diamonds,
soccer pitches, etc.) totalling $3.76 million.
The combined replacement value of the parks & recreation inventory is $18.77 million and
yields a ten-year historical service level of $1,559.70 per capita. When multiplied by the
Township's net population growth to 2030 (180 persons), a maximum allowable funding
envelope of $281,149 is established.
TABLE 2
2021 - 2030 CAPITAL PROGRAM AND CALCULATION OF
"UNADJUSTED" DEVELOPMENT CHARGES
The development-related capital program for Parks & Recreation includes a variety of new
facilities such as skateboard and pickle ball parks, an off-leash dog park, new playgrounds,
and pedestrian and cycle paths. Additionally, a provision for a Parks & Recreation Master
Plan is included in the capital program.
The capital plan totals $1.19 million, and of this figure, approximately $584,000 in grants
and subsidies is recognized to offset a share of the cost. In addition, replacement shares of
$232,000 has been deducted to recognize that certain amenities are not growth-related
reducing the total development-related cost to $378,000. Given this amount exceeds the
Appendix B: General Services Technical Appendix | 64
funding envelope of $281,149, $96,851 has been deemed "other-development related"
shares and is eligible to be recovered through future development charges (or other growth-
related funding mechanism such as CBCs). The resulting development-related cost eligible
for recovery in the 2021-2030 planning period is $281,149. Similar to Library services, 100
per cent of this amount is apportioned to residential development. This translates to an
unadjusted charge of $721.59 per capita.
TABLE 3
CASH FLOW ANALYSIS
After cash flow considerations, the residential charge increases from $721.59 to $713.00 per
capita. Details of the cash flow analysis are laid out in Table 3.
10-year Hist.
Service Level
$/pop & emp
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$1,559.70
$1,194,000
$281,149
$721.59
$0.00
$713.00
$0.00
PARKS & RECREATION SUMMARY
Development Charge
2021-2030
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Appendix B: General Services Technical Appendix | 65
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
PARKS AND RECREATION
BUILDINGS
UNIT COST
Facility Name
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/sq. ft.)
Shakespeare Hall
11,660
11,660
11,660
11,660
11,660
11,660
11,660
11,660
11,660
11,660
$170
PERC
52,800
52,800
52,800
52,800
52,800
52,800
52,800
52,800
52,800
52,800
$170
Rostock Hall
3,260
3,260
3,260
3,260
3,260
3,260
3,260
-
-
-
$100
Total (sq.ft.)
67,720
67,720
67,720
67,720
67,720
67,720
67,720
64,460
64,460
64,460
Total ($000)
$11,284.2
$11,284.2
$11,284.2
$11,284.2
$11,284.2
$11,284.2
$11,284.2
$10,958.2
$10,958.2
$10,958.2
LAND
UNIT COST
Facility Name
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/ha)
Shakespeare Hall
0.29
0.29
0.29
0.29
0.29
0.29
0.29
0.29
0.29
0.29
$500,000
PERC
1.28
1.28
1.28
1.28
1.28
1.28
1.28
1.28
1.28
1.28
$500,000
Rostock Hall
0.68
0.68
0.68
0.68
0.68
0.68
0.68
-
-
-
$500,000
Total (ha)
2.25
2.25
2.25
2.25
2.25
2.25
2.25
1.57
1.57
1.57
Total ($000)
$1,125.4
$1,125.4
$1,125.4
$1,125.4
$1,125.4
$1,125.4
$1,125.4
$784.7
$784.7
$784.7
# of Hectares
# of Square Feet
APPENDIX B.3
TABLE 1 - PAGE 1
Appendix B: General Services Technical Appendix | 66
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
PARKS AND RECREATION
FURNITURE & EQUIPMENT
Facility Name
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Parks Furniture and Equipment
$2,300
$2,300
$2,300
$2,300
$2,300
$2,300
$2,300
$2,300
$2,300
$2,300
Shakespeare Booth Equipment
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
$4,900
PERC Furniture and Fixtures
$137,580
$137,580
$137,580
$137,580
$137,580
$137,580
$137,580
$137,580
$137,580
$137,580
PERC Arena Equipment
$532,500
$532,500
$532,500
$532,500
$532,500
$532,500
$532,500
$532,500
$532,500
$532,500
PERC Ball Diamond Equipment
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
$3,600
PERC Banquet Hall Equipment
$82,000
$82,000
$82,000
$82,000
$82,000
$82,000
$82,000
$82,000
$82,000
$82,000
PERC Pool Equipment
$7,900
$7,900
$7,900
$7,900
$7,900
$7,900
$7,900
$7,900
$7,900
$7,900
PERC Benches and Picnic Tables
$10,130
$10,130
$10,130
$10,130
$10,130
$10,130
$10,130
$10,130
$10,130
$10,130
Park Benches and Picnic Tables
$0
$10,500
$10,500
$10,500
$10,500
$10,500
$10,500
$10,500
$10,500
$10,500
Park Lighting
$242,000
$242,000
$242,000
$242,000
$242,000
$242,000
$242,000
$242,000
$242,000
$242,000
PERC Ball Diamond Lighting
$118,100
$118,100
$118,100
$118,100
$118,100
$118,100
$118,100
$118,100
$118,100
$118,100
PERC Mower
$13,400
$13,400
$13,400
$13,400
$13,400
$13,400
$13,400
$13,400
$13,400
$13,400
PERC Pickup Truck
$5,230
$5,230
$5,230
$5,230
$5,230
$5,230
$5,230
$5,230
$5,230
$5,230
Park and Recreation Fencing
$17,300
$17,300
$17,300
$17,300
$17,300
$17,300
$17,300
$17,300
$17,300
$17,300
Total ($000)
$1,176.9
$1,187.4
$1,187.4
$1,187.4
$1,187.4
$1,187.4
$1,187.4
$1,187.4
$1,187.4
$1,187.4
Total Value of Furniture & Equipment ($)
APPENDIX B.3
TABLE 1 - PAGE 2
Appendix B: General Services Technical Appendix | 67
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
PARKS AND RECREATION
PARK BUILDINGS
UNIT COST
Description
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/sq.ft)
Greenwood Park Pavilion
1,020
1,020
1,020
1,020
1,020
1,020
1,020
1,020
1,020
1,020
$30
Greenwood Park Washrooms
340
340
340
340
340
340
340
340
340
340
$60
Lyle Yost Memorial Park Pavilion
2,940
2,940
2,940
2,940
2,945
2,950
2,950
2,950
2,950
2,950
$105
Lyle Yost Storage Building
190
190
190
190
190
190
190
190
190
190
$30
Milverton Lions Park Gazebo
225
225
225
225
225
225
225
225
225
225
$45
Morningdale Centennial Park Pavilion
2,940
2,940
2,940
2,940
2,940
2,940
2,940
2,940
2,940
2,940
$20
Newton Pavilion
1,060
1,060
1,060
1,060
1,060
1,060
1,060
1,060
1,060
1,060
$80
Newton Pavilion Washrooms
150
150
150
150
150
150
150
150
150
150
$110
Shakespeare Park Booth
-
1,480
1,480
1,480
1,480
1,480
1,480
1,480
1,480
1,480
$110
Shakespeare Park Pavilion
6,940
6,940
6,940
6,940
6,940
6,940
6,940
6,940
6,940
6,940
$75
Quinlin Park Pavilion
1,360
1,360
1,360
1,360
1,360
1,360
1,360
-
-
-
$10
Total (sq.ft.)
17,165
18,645
18,645
18,645
18,650
18,655
18,655
17,295
17,295
17,295
Total ($000)
$1,070.9
$1,233.7
$1,233.7
$1,233.7
$1,234.2
$1,234.7
$1,234.7
$1,221.1
$1,241.0
$1,221.1
# of Square Feet
APPENDIX B.3
TABLE 1 - PAGE 3
Appendix B: General Services Technical Appendix | 68
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
PARKS AND RECREATION
PARKLAND DEVELOPMENT
PARK DEVELOPMENT
UNIT COST
Park Type
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/ha)
Quinlan Park
0.93
0.93
0.93
0.93
0.93
0.93
0.93
0.93
0.93
0.93
$50,000
Newton Athletic Field
2.52
2.52
2.52
2.52
2.52
2.52
2.52
2.52
2.52
2.52
$50,000
Llye Yost Memorial Park
4.90
4.90
4.90
4.90
4.90
4.90
4.90
4.90
4.90
4.90
$50,000
Morningdale Centenial Park
2.78
2.78
2.78
2.78
2.78
2.78
2.78
2.78
2.78
2.78
$50,000
Greenwood Park
0.88
0.88
0.88
0.88
0.88
0.88
0.88
0.88
0.88
0.88
$50,000
Lions Park
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
$50,000
Perc Park
3.84
3.84
3.84
3.84
3.84
3.84
3.84
3.84
3.84
3.84
$50,000
At the Administration Building
0.11
0.11
0.11
0.11
0.11
0.11
0.11
0.11
0.11
0.11
$50,000
Shakespeare Park Ball Fields and Pavillion
1.02
1.02
1.02
1.02
1.02
1.02
1.02
1.02
1.02
1.02
$50,000
Millennium Garden - North on Main Street Milverton
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.12
$50,000
Total (ha)
17.2
17.2
17.2
17.2
17.2
17.2
17.2
17.2
17.2
17.2
Total ($000)
$857.7
$857.7
$857.7
$857.7
$857.7
$857.7
$857.7
$857.7
$857.7
$857.7
APPENDIX B.3
TABLE 1 - PAGE 4
# of Hectares of Developed Parkland
Appendix B: General Services Technical Appendix | 69
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
PARKS AND RECREATION
PARK AMENITIES
PLAYGROUNDS
UNIT COST
Park Name
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/unit)
Shakespeare Athletic Club and Fair Grounds
1
1
1
1
1
1
1
1
1
1
$89,000
Newton Athletic Field
1
1
1
1
1
1
1
1
1
1
$71,000
Lyle Yost Memorial Park
1
1
1
1
1
1
1
1
1
1
$83,000
Morningdale Centennial Park
1
1
1
1
1
1
1
1
1
1
$35,000
Greenwood Park
1
1
1
1
1
1
1
1
1
1
$90,000
Grand River CA (Pioneer) Park
-
-
-
-
-
1
1
1
1
1
$56,000
Quinlan Park
-
-
-
-
-
-
1
1
1
1
$69,000
Administrative Building
-
-
-
-
-
-
1
1
1
1
$74,000
PERC
1
1
1
1
1
1
1
1
1
1
$95,000
Total (#)
6
6
6
6
6
7
9
9
9
9
Total ($000)
$463.0
$463.0
$463.0
$463.0
$463.0
$519.0
$662.0
$662.0
$662.0
$662.0
APPENDIX B.3
TABLE 1 - PAGE 5
# of Playgrounds
Appendix B: General Services Technical Appendix | 70
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
PARKS AND RECREATION
PARK AMENITIES
PARK AMENITIES
UNIT COST
Park Name
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/unit)
Baseball Diamonds
Shakespeare Athletic Club and Fair Grounds
1
1
1
1
1
1
1
1
1
1
$165,000
Newton Athletic Field
1
1
1
1
1
1
1
1
1
1
$165,000
Llye Yost Memorial Park
2
2
2
2
2
2
2
2
2
2
$330,000
PERC
1
1
1
1
1
1
1
1
1
1
$165,000
Bleachers
Newton Athletic Field
1
1
1
1
1
1
1
1
1
1
$2,000
Llye Yost Memorial Park
1
1
1
1
1
1
1
1
1
1
$25,000
Shakespeare Booth - Bleachers
-
1
1
1
1
1
1
1
1
1
$85,000
PERC Bleachers
1
1
1
1
1
1
1
1
1
1
$2,000
Soccer Field
PERC
1
1
1
1
1
1
1
1
1
1
$53,200
Newton
2
2
2
2
2
2
2
2
2
2
$75,000
Walking Paths
Former Railbed Milverton Walking Path
-
-
-
-
1
1
1
1
1
1
$18,600
PERC Sportsfiled Walking Path
1
1
1
1
1
1
1
1
1
1
$8,900
Pool
PERC Pool
1
1
1
1
1
1
1
1
1
1
$1,600,000
Total (#)
13
14
14
14
15
15
15
15
15
15
Total ($000)
$2,996.1
$3,081.1
$3,081.1
$3,081.1
$3,099.7
$3,099.7
$3,099.7
$3,099.7
$3,099.7
$3,099.7
# of Amenities
APPENDIX B.3
TABLE 1 - PAGE 6
Appendix B: General Services Technical Appendix | 71
APPENDIX B.3
TABLE 1 - PAGE 7
TOWNSHIP OF PERTH EAST
CALCULATION OF SERVICE LEVELS
PARKS AND RECREATION
SUMMARY OF SERVICE LEVEL ANALYSIS
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Historic Population
12,000
12,059
12,119
12,179
12,239
12,300
12,340
12,380
12,420
12,460
INVENTORY SUMMARY ($000)
Buildings and Equipment
$14,657.4
$14,830.7
$14,830.7
$14,830.7
$14,831.2
$14,831.8
$14,831.8
$14,151.5
$14,171.4
$14,151.5
Parkland Development
$857.7
$857.7
$857.7
$857.7
$857.7
$857.7
$857.7
$857.7
$857.7
$857.7
Park Amenities
$3,459.1
$3,544.1
$3,544.1
$3,544.1
$3,562.7
$3,618.7
$3,761.7
$3,761.7
$3,761.7
$3,761.7
Total ($000)
$18,974.2
$19,232.5
$19,232.5
$19,232.5
$19,251.6
$19,308.1
$19,451.1
$18,770.8
$18,790.8
$18,770.8
Average
SERVICE LEVEL ($/capita)
Service
Level
Buildings and Equipment
$1,221.45
$1,229.85
$1,223.76
$1,217.73
$1,211.80
$1,205.83
$1,201.95
$1,143.13
$1,141.05
$1,135.78
$1,193.23
Parkland Development
$71.47
$71.12
$70.77
$70.42
$70.08
$69.73
$69.50
$69.28
$69.06
$68.83
$70.03
Park Amenities
$288.26
$293.90
$292.44
$291.00
$291.09
$294.20
$304.84
$303.86
$302.88
$301.91
$296.44
Total ($/capita)
$1,581.18
$1,594.86
$1,586.97
$1,579.15
$1,572.97
$1,569.77
$1,576.30
$1,516.27
$1,512.99
$1,506.52
$1,559.70
CALCULATION OF MAXIMUM ALLOWABLE FUNDING ENVELOPE
TOWNSHIP OF PERTH EAST
10-Year Funding Envelope Calculation
10 Year Average Service Level 2011 - 2020
$1,559.70
Net Population Growth 2021 - 2030
180
Maximum Allowable Funding Envelope
$281,149
Appendix B: General Services Technical Appendix | 72
Gross
Grants/
Net
Ineligible Cost
Total
DC Eligible Costs
Service
Timing
Project
Subsidies/Other
Municipal
Replacement
DC Eligible
Available DC
2021-
Other Dev.
Cost
Recoveries
Cost
& BTE Share
Costs
Reserves
2030
Related
3.0
PARKS & RECREATION
3.1 Park Development
3.1.1 Shakespeare Skateboard Park
various
100,000
$
50,000
$
50,000
$
-
$
50,000
$
-
$
50,000
$
-
$
3.1.2 PERC Skateboard Park
various
100,000
$
50,000
$
50,000
$
-
$
50,000
$
-
$
50,000
$
-
$
3.1.3 PERC Pickle Ball Court
various
45,000
$
-
$
45,000
$
-
$
45,000
$
-
$
45,000
$
-
$
3.1.4 Greenwood Park Revitilization Project
various
105,000
$
-
$
105,000
$
72,000
$
33,000
$
-
$
33,000
$
-
$
3.1.5 Morningdale Park Playground
various
80,000
$
-
$
80,000
$
80,000
$
-
$
-
$
-
$
-
$
3.1.6 Lyle Yost Park Playground
various
80,000
$
-
$
80,000
$
80,000
$
-
$
-
$
-
$
-
$
3.1.7 Provision for New Soccer Field (Milverton or Newton Area)
2025
75,000
$
-
$
75,000
$
-
$
75,000
$
-
$
75,000
$
-
$
3.1.8 New Pavillion
2021
434,000
$
434,000
$
-
$
-
$
-
$
-
$
-
$
-
$
3.1.9 Off-Leash Dog Park
2025
25,000
$
-
$
25,000
$
-
$
25,000
$
-
$
25,000
$
-
$
3.1.10Pedestrian and Cycle Paths
various
100,000
$
-
$
100,000
$
-
$
100,000
$
-
$
3,149
$
96,851
$
Subtotal Park Development
1,144,000
$
534,000
$
610,000
$
232,000
$
378,000
$
-
$
281,149
$
96,851
$
3.2. Studies
3.2.1 Parks & Rec Master Plan
various
50,000
$
50,000
$
-
$
-
$
-
$
-
$
-
$
-
$
Subtotal
50,000
$
50,000
$
-
$
-
$
-
$
-
$
-
$
-
$
TOTAL PARKS & RECREATION
1,194,000
$
584,000
$
610,000
$
232,000
$
378,000
$
-
$
281,149
$
96,851
$
Residential Development Charge Calculation
Residential Share of 2021-2030 DC Eligible Costs
100%
$281,149
2021 - 2030 Net Funding Envelope
$281,149
10 Year Growth in Population in New Units
390
Unadjusted Development Charge Per Capita ($)
$721.59
Reserve Fund Balance
$0
Non-Residential Development Charge Calculation
Non-Residential Share of 2021-2030 DC Eligible Costs
0%
-
$
10 Year Growth in Square Meters
23,622
Unadjusted Development Charge Per Sq.M ($)
$0.00
TOWNSHIP OF PERTH EAST
DEVELOPMENT-RELATED CAPITAL PROGRAM
PARKS & RECREATION
APPENDIX B.3
TABLE 2
Appendix B: General Services Technical Appendix | 73
PARKS & RECREATION
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
TOTAL
OPENING CASH BALANCE ($000)
0.0
52.1
65.2
79.2
94.1
(1.1)
11.9
9.0
6.0
3.0
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Parks & Recreation : Non Inflated
$18.11
$18.11
$18.11
$18.11
$118.11
$18.11
$18.11
$18.11
$18.11
$18.11
$281.15
Parks & Recreation: Inflated
$18.11
$18.48
$18.85
$19.22
$127.85
$20.00
$20.40
$20.81
$21.22
$21.65
$306.60
POPULATION GROWTH
- Population in New Units
97
41
41
41
41
42
21
22
22
22
390
REVENUE - current ($000)
- Dev. Charge Receipts
69.3
29.6
30.4
31.2
32.0
32.8
17.1
17.6
18.1
18.7
$296.79
- Interest on Opening Balance
0.0
1.8
2.3
2.8
3.3
(0.1)
0.4
0.3
0.2
0.1
$11.16
- Interest on In-year Transactions (excl.int.)
0.9
0.2
0.2
0.2
(2.6)
0.2
(0.1)
(0.1)
(0.1)
(0.1)
($1.26)
TOTAL REVENUE
70.2
31.6
32.8
34.1
32.6
33.0
17.4
17.8
18.3
18.7
$306.70
CLOSING CASH BALANCE
52.1
65.2
79.2
94.1
(1.1)
11.9
9.0
6.0
3.0
0.1
2021 Adjusted Charge Per Capita
$713.00
Allocation of Capital Program
Residential Sector
100.0%
Non-Residential Sector
0.0%
Rates for 2021
Inflation Rate
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
TABLE 3
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
PARKS AND RECREATION
RESIDENTIAL DEVELOPMENT CHARGE
APPENDIX B.3
Appendix B: General Services Technical Appendix | 74
APPENDIX B.4
DEVELOPMENT-RELATED STUDIES
Appendix B: General Services Technical Appendix | 75
DEVELOPMENT-RELATED STUDIES
The DCA allows the cost of development-related studies to be included in the calculation of
development charges. The Town has identified a series of studies that need to be
undertaken over the next few years to continue to appropriately plan for anticipated growth
in the Township.
TABLE 1
2021-2030 DEVELOPMENT-RELATED CAPITAL PROGRAM
AND CALCULATION OF THE "UNADJUSTED"
DEVELOPMENT CHARGES
As shown in Table 1, the 2021-2030 development-related gross cost for this service area is
$110.000. The capital program relates to the preparation of two development charges
background studies plus a provision for other development-related studies which may be
required over the planning period (Secondary Plans, long-range financial plans, growth-
related share of zoning by-law or official plan work, etc.).
Overall, as of these studies are directly related to growth in the Township of Perth East, the
total study amount is entirely attributable to new development over the planning period.
This amount is apportioned 50 per cent ($55,000) to residential development and 50 per cent
($55,000) to non-residential development. The resulting unadjusted development charges are
$141.16 per capita and $2.33 per square metre of new non-residential building space.
TABLE 2
CASH FLOW ANALYSIS
The cash-flow analysis is displayed in Table 2 and considers the timing of the development
charges revenues to determine the adjusted rates. After cash flow considerations, the
residential development charge increases to $141.72 per capita. The non-residential
development charge increases to $2.36 per square metre.
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$110,000
$110,000
$141.16
$2.33
$141.72
$2.36
DEVELOPMENT-RELATED STUDIES SUMMARY
2021-2030
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Development Charge
Appendix B: General Services Technical Appendix | 76
Gross
Grants/
Net
Ineligible Cost
Total
DC Eligible Costs
Service
Timing
Project
Subsidies/Other
Municipal
Replacement
DC Eligible
Available DC
2021-
Post
Cost
Recoveries
Cost
& BTE Share
Costs
Reserves
2030
2030
4.0
DEVELOPMENT-RELATED STUDIES
4.1 Studies
4.1.1 Development Charge Study
2021
30,000
$
-
$
30,000
$
-
$
30,000
$
-
$
30,000
$
-
$
4.1.2 Development Charge Study
2026
30,000
$
-
$
30,000
$
-
$
30,000
$
-
$
30,000
$
-
$
4.1.3 Additional Development-Related Studies
various
50,000
$
-
$
50,000
$
-
$
50,000
$
-
$
50,000
$
-
$
110,000
$
-
$
110,000
$
-
$
110,000
$
-
$
110,000
$
-
$
TOTAL DEVELOPMENT-RELATED STUDIES
110,000
$
-
$
110,000
$
-
$
110,000
$
-
$
110,000
$
-
$
Residential Development Charge Calculation
Residential Share of 2021-2030 DC Eligible Costs
50%
$55,000
10 Year Growth in Population in New Units
390
Unadjusted Development Charge Per Capita ($)
$141.16
Non-Residential Development Charge Calculation
Non-Residential Share of 2021-2030 DC Eligible Costs
50%
55,000
$
10 Year Growth in Square Meters
23,622
Unadjusted Development Charge Per Sq.M ($)
$2.33
DEVELOPMENT-RELATED STUDIES
APPENDIX B.4
TABLE 1
TOWNSHIP OF PERTH EAST
DEVELOPMENT-RELATED CAPITAL PROGRAM
Appendix B: General Services Technical Appendix | 77
DEVELOPMENT-RELATED STUDIES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
TOTAL
OPENING CASH BALANCE ($000)
0.0
(3.8)
(0.6)
2.8
6.5
10.5
(2.3)
(1.9)
(1.3)
(0.7)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Development-Related Studies : Non Inflated
$17.50
$2.50
$2.50
$2.50
$2.50
$17.50
$2.50
$2.50
$2.50
$2.50
$55.00
Development-Related Studies : Inflated
$17.50
$2.55
$2.60
$2.65
$2.71
$19.32
$2.82
$2.87
$2.93
$2.99
$58.94
POPULATION GROWTH
- Population in New Units
97
41
41
41
41
42
21
22
22
22
390
REVENUE - current ($000)
- Dev. Charge Receipts
13.8
5.9
6.0
6.2
6.4
6.5
3.4
3.5
3.6
3.7
$58.99
- Interest on Opening Balance
0.0
(0.2)
(0.0)
0.1
0.2
0.4
(0.1)
(0.1)
(0.1)
(0.0)
$0.11
- Interest on In-year Transactions (excl.int.)
(0.1)
0.1
0.1
0.1
0.1
(0.4)
0.0
0.0
0.0
0.0
($0.16)
TOTAL REVENUE
13.7
5.7
6.1
6.4
6.6
6.5
3.3
3.4
3.5
3.7
$58.94
CLOSING CASH BALANCE
(3.8)
(0.6)
2.8
6.5
10.5
(2.3)
(1.9)
(1.3)
(0.7)
0.0
2021 Adjusted Charge Per Capita
$141.72
Allocation of Capital Program
Residential Sector
50.0%
Non-Residential Sector
50.0%
Rates for 2021
Inflation Rate
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
TABLE 2 - PAGE 1
APPENDIX B.4
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
DEVELOPMENT-RELATED STUDIES
RESIDENTIAL DEVELOPMENT CHARGE
Appendix B: General Services Technical Appendix | 78
DEVELOPMENT-RELATED STUDIES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
TOTAL
OPENING CASH BALANCE ($000)
$0.00
($9.87)
($5.80)
($1.41)
$3.46
$8.79
($2.55)
($1.99)
($1.37)
($0.71)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Development-Related Studies : Non Inflated
$17.50
$2.50
$2.50
$2.50
$2.50
$17.50
$2.50
$2.50
$2.50
$2.50
$55.00
Development-Related Studies : Inflated
$17.50
$2.55
$2.60
$2.65
$2.71
$19.32
$2.82
$2.87
$2.93
$2.99
$58.94
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
3,342
2,940
2,940
3,000
3,060
3,060
1,320
1,320
1,320
1,320
23,622
REVENUE - current ($000)
- Dev. Charge Receipts
$7.9
$7.1
$7.2
$7.5
$7.8
$8.0
$3.5
$3.6
$3.7
$3.7
$60.00
- Interest on Opening Balance
0.0
(0.5)
(0.3)
(0.1)
0.1
0.3
(0.1)
(0.1)
(0.1)
(0.0)
($0.88)
- Interest on In-year Transactions (excl.int.)
(0.3)
0.1
0.1
0.1
0.1
(0.3)
0.0
0.0
0.0
0.0
($0.19)
TOTAL REVENUE
7.6
6.6
7.0
7.5
8.0
8.0
3.4
3.5
3.6
3.7
$58.94
CLOSING CASH BALANCE
(9.9)
(5.8)
(1.4)
3.5
8.8
(2.6)
(2.0)
(1.4)
(0.7)
(0.0)
Allocation of Capital Program
2021 Adjusted Charge Per Square Metre
$2.36
Residential Sector
50.0%
Non-Residential Sector
50.0%
Rates for 2021
Inflation Rate:
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
TABLE 2 - PAGE 2
APPENDIX B.4
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
DEVELOPMENT-RELATED STUDIES
NON-RESIDENTIAL DEVELOPMENT CHARGE
Appendix B: General Services Technical Appendix | 79
APPENDIX C
ENGINEERED SERVICES
TECHNICAL APPENDIX
Appendix C: Engineered Services | 80
ENGINEERED SERVICES TECHNICAL APPENDIX
The capital planning and management of all roads and related infrastructure in the
Township is carried out by the Engineering Services Department. The Department also
provides review and inspection services to facilitate new development and maintain service
standards to sustain the existing infrastructure. The basis of the development related
capital program for Service Related to a Highway, Water, and Wastewater infrastructure is
based on discussions with Township staff.
This appendix provides the analysis undertaken to establish the development charge rates
for the "Services Related to a Highway" in the Township of Perth East as well as water and
wastewater infrastructure. The services have been analysed herein as part of the
development charges study:
Appendix C.1
Services Related to a Highway:
C.1.1 Public Works
C.1.2 Roads & Related
Appendix C.2
Water Services
Appendix C.3
Wastewater Services
The services included in the Services Related to a Highway infrastructure as defined in
subsection 1 (1) of the Municipal Act, 2001 consist of the road network, bridges and culverts,
streetlights, intersection improvements, traffic signalization, sidewalks, cycling lanes, transit
priority measures, and other related structures. Township owned public works facilities, land,
fleet, and associated furniture and equipment are also included in the service. A detailed
summary of the inventory and capital plans for the two Services Related to a Highway can be
found in Appendix C.1.1 and C.1.2. Both subsections contain a set of three tables which set
out the 2021 to 2046 development-related capital program and the development charge
calculations. The description, cost, and distribution of benefits of the projects included in the
program have been developed by Township staff and the consulting team.
The services included in the Water and Wastewater infrastructure consist of sewage,
pumping, inflow and infiltration, and other related facilities. A detailed summary of the
capital plans for the Water and Wastewater Services can be found in Appendix C.2 and C.3.
Please note Water and Wastewater infrastructure included in the DC capital forecast are
required to achieve health and safety standards as identified in relevant legislation
including Provincial regulations. As such, in accordance with section 4(3) of O.Reg. 82/98,
Appendix C: Engineered Services | 81
the ten-year historical service level does not apply. An overview of the content and purpose
of each of the tables is given below.
TABLE 1
HISTORICAL SERVICE LEVELS
The DCA and Ontario Regulation 82/98 require that development charges be set at a level
no higher than the average service level provided in the Township over the 10 year period
immediately preceding the preparation of the background study, on a service by service
basis. For the purpose of this study, the historical inventory period has been defined as
2011 to 2020. O. Reg. 82/98 requires that when defining and determining historical service
levels both the quantity and quality of service be taken into consideration.
Table 1 summarizes the 10-year replacement value of the Township's Services Related to a
Highway infrastructure and shows the calculation of the ten year historical average service
level. Table 1 also shows the calculation of the "maximum allowable" funding envelope for
Services Related to a Highway infrastructure. The maximum allowable is defined as the 10-
year historical service level multiplied by the forecast increase in net population and
employment over the planning period. The resulting maximum allowable funding envelope is
the value of capital infrastructure that would have to be constructed over the 2021-2046
period so that the 10-year historical service level for Services Related to a Highway is
maintained.
TABLE 2
2021 - 2046 CAPITAL PROGRAM AND CALCULATION OF
"UNADJUSTED" DEVELOPMENT CHARGES
The DCA requires that Township Council express its intent to provide future capital
facilities at the level incorporated in the development charges calculation. The projects
identified in the capital program are required to service the demands of new development
between 2021 and 2046, subject to annual capital budget reviews. While the need for
individual works in the program is driven by development at specific locations, the benefits
of the program will be broadly distributed across the entire Township. Capital costs have
been allocated as development-related or non-development related (the "benefit to
existing" share) based on the demands of new development on the particular project and
need to improve the transportation, water, and wastewater facilities to accommodate the
development-related impacts.
Appendix C: Engineered Services | 82
TABLE 3
CASH FLOW ANALYSIS
A cash flow analysis is also undertaken to account for the timing of projects and receipt of
development charges. Interest earnings or borrowing costs are, therefore, accounted for in
the calculation as allowed under the DCA. Based on the development forecast, the analysis
calculates the development charge rate that is required to finance the net development-
related capital spending plan including provisions for any borrowing costs or interest
earnings on the reserve funds
Appendix C: Engineered Services | 83
APPENDIX C.1.1
SERVICES RELATED TO A HIGHWAY:
PUBLIC WORKS
Appendix C: Engineered Services | 84
SERVICES RELATED TO A HIGHWAY: PUBLIC
WORKS
The Public Works and Operations Department provides road maintenance services in the
Township. This section details the capital infrastructure of Public Works buildings, land, and
related furniture and equipment, and municipal fleet, as well as the engineered components
related to roads.
TABLE 1
HISTORICAL SERVICE LEVELS
Table 1 demonstrates that the Township's current public works infrastructure comprises
four buildings totalling 32,550 square feet. Included in the building inventory are two public
work shops, a salt shed, and a gravel pit scale house. The replacement cost for the
mentioned facilities amount to $2.67 million. The two public work shops occupy 4.85
hectares of land that is valued at approximately $1.45 million. The furniture and equipment
associated with the public works facilities and fleet add another $83,700 and $6.00 million
respectively to the value of the inventory.
The current replacement value of the total inventory of capital assets for the Public Works
Service is $10.21 million. As shown, the 10-year historical average service level is calculated
to be $650.81 per capita and employment. When multiplied by the forecast increase in net
population and employment over the planning period (1,006 persons and jobs), the resulting
maximum allowable funding envelope is $654,697.
TABLE 2
2021 - 2046 CAPITAL PROGRAM AND CALCULATION OF
"UNADJUSTED" DEVELOPMENT CHARGES
The development-related capital program for Public Works totals $340,000. This accounts
for the acquisition of additional vehicles and fleet to service new development in the
Township.
No grants or subsidies have been identified to offset the cost of the program, however, a
share of $48,500 has been identified and removed from the calculation as a portion of the
multi-use truck and pickup truck is considered to be used to provide services unrelated to
public works. The remaining $291,500 is related to development in the 2021 to 2046
planning period.
Appendix C: Engineered Services | 85
This development-related cost is allocated 53 per cent ($154,495) against new residential
development and 47 per cent ($137,005) to non-residential development. Dividing the
residential share of the capital program ($154,495) by the anticipated growth in new units
(748) yields an unadjusted residential development charge of $206.63 per capita. Likewise,
dividing the non-residential share of the capital program ($137,005) by the forecast non-
residential growth in square metres (39,942) yields and unadjusted non-residential
development charge of $3.43 per square metre of new non-residential building space.
TABLE 3
CASH FLOW ANALYSIS
After cash flow considerations, the residential development charge increases to $260.19 per
capita and $4.18 per square metre of non-residential building space. The increase in the
charge is the result of a front-ended development-related capital program.
10-year Hist.
Service Level
$/pop & emp
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$650.81
$340,000
$291,500
$206.63
$3.43
$260.19
$4.18
Development-Related Capital Program
Development Charge
Development Charge
Unadjusted
Adjusted
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS SUMMARY
2021-2046
Appendix C: Engineered Services | 86
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
BUILDINGS
UNIT COST
Facility Name
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/sq.ft.)
NEH Public Works Shop
9,270
9,270
9,270
9,270
9,270
9,270
9,270
9,270
9,270
9,270
$90
NEH Salt Shed
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
$25
Public Works Shop Line 61
-
-
-
-
19,200
19,200
19,200
19,200
19,200
19,200
$90
Rostock Public Works Shop
5,770
5,770
5,770
5,770
5,770
5,770
5,770
5,770
-
-
$90
Gravel Pit Scale House
80
80
80
80
80
80
80
80
80
80
$90
Newton Shop
4,690
4,690
4,690
4,690
-
-
-
-
-
-
$90
Newton Storage Shed
3,020
3,020
3,020
3,020
-
-
-
-
-
-
$90
Milverton Shop
5,225
5,225
5,225
5,225
5,225
-
-
-
-
-
$90
Total (sq.ft.)
32,055
32,055
32,055
32,055
43,545
38,320
38,320
38,320
32,550
32,550
Total ($000)
$2,625.0
$2,625.0
$2,625.0
$2,625.0
$3,659.1
$3,188.8
$3,188.8
$3,188.8
$2,669.5
$2,669.5
LAND
UNIT COST
Branch Name
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/ha)
NEH Public Works Shop
1.43
1.43
1.43
1.43
1.43
1.43
1.43
1.43
1.43
1.43
$300,000
Public Works Shop Line 61
-
-
-
-
3.42
3.42
3.42
3.42
3.42
3.42
$300,000
Rostock Public Works Shop
0.09
0.09
0.09
0.09
0.09
0.09
0.09
0.09
-
-
$300,000
Newton Shop
0.81
0.81
0.81
0.81
-
-
-
-
-
-
$300,000
Miverton Shop
0.43
0.43
0.43
0.43
0.43
-
-
-
-
-
$300,000
Total (ha)
2.76
2.76
2.76
2.76
5.37
4.94
4.94
4.94
4.85
4.85
Total ($000)
$827.0
$827.0
$827.0
$827.0
$1,610.3
$1,482.3
$1,482.3
$1,482.3
$1,455.5
$1,455.5
FURNITURE AND EQUIPMENT
Description
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Furniture and Small Equipment (pooled)
$83,650
$83,650
$83,650
$83,650
$83,650
$83,650
$83,650
$83,650
$83,650
$83,650
Total ($000)
$83.7
$83.7
$83.7
$83.7
$83.7
$83.7
$83.7
$83.7
$83.7
$83.7
# of Hectares
# of Square Feet
Value of Furniture and Equipment
APPENDIX C.1.1
TABLE 1 - PAGE 1
Appendix C: Engineered Services | 87
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
OPERATIONS
FLEET & RELATED EQUIPMENT
UNIT COST
Description
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/vehicle)
Bulldozer
1
1
1
1
1
1
1
1
1
1
$250,000
Excavator
-
-
-
-
-
-
1
1
1
1
$150,000
Generator
1
1
1
1
1
2
2
2
2
2
$37,000
Forklift
-
-
-
-
1
1
1
1
1
1
$10,000
Fuel Tanks
-
-
-
-
1
1
1
1
1
1
$28,000
Graders
5
5
5
5
5
5
5
5
5
5
$400,000
Snow Plow
1
1
1
1
1
1
1
1
1
1
$30,000
Jib Crane
-
-
-
-
1
1
1
1
1
1
$45,000
Snow Plow Attachment
1
1
1
1
1
1
1
1
1
1
$18,000
Loader
1
1
1
1
1
1
1
1
1
1
$255,000
Mower
7
7
7
7
7
7
7
7
7
7
$13,000
Welding Equipment
-
-
-
-
1
1
1
1
1
1
$3,700
Snow Blower
3
3
3
3
3
3
3
3
3
3
$41,000
Tractor
2
2
2
2
2
2
2
2
2
2
$120,000
Trailer
-
-
-
-
-
-
1
1
2
2
$19,000
Water Tank
1
1
1
1
1
1
1
1
1
1
$16,000
Wood Chipper
-
-
-
-
-
1
1
1
1
1
$52,000
Pick-up Truck
5
5
5
5
5
5
5
5
5
5
$42,000
Tandem Axel Dump
2
2
2
2
2
2
2
2
2
2
$300,000
Tri Axle Dump Truck
5
5
5
5
5
5
5
5
5
5
$350,000
Snow Plow equipment
2
2
2
2
2
2
2
2
2
2
$9,000
Total (#)
37
37
37
37
41
43
45
45
46
46
Total ($000)
$5,638.0
$5,638.0
$5,638.0
$5,638.0
$5,724.7
$5,813.7
$5,982.7
$5,982.7
$6,001.7
$6,001.7
# of Vehicles or Equipment
APPENDIX C.1.1
TABLE 1 - PAGE 2
Appendix C: Engineered Services | 88
APPENDIX C.1.1
TOWNSHIP OF PERTH EAST
CALCULATION OF SERVICE LEVELS
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Historical Population
12,000
12,059
12,119
12,179
12,239
12,300
12,340
12,380
12,420
12,460
Historical Employment
2,590
2,720
2,857
3,001
3,152
3,310
3,362
3,415
3,469
3,524
Total Historical Population & Employment
14,590
14,779
14,976
15,180
15,391
15,610
15,702
15,795
15,889
15,984
INVENTORY SUMMARY ($000)
Buildings
$2,625.0
$2,625.0
$2,625.0
$2,625.0
$3,659.1
$3,188.8
$3,188.8
$3,188.8
$2,669.5
$2,669.5
Land
$827.0
$827.0
$827.0
$827.0
$1,610.3
$1,482.3
$1,482.3
$1,482.3
$1,455.5
$1,455.5
Furniture And Equipment
$83.7
$83.7
$83.7
$83.7
$83.7
$83.7
$83.7
$83.7
$83.7
$83.7
Fleet & Related Equipment
$5,638.0
$5,638.0
$5,638.0
$5,638.0
$5,724.7
$5,813.7
$5,982.7
$5,982.7
$6,001.7
$6,001.7
Total ($000)
$9,173.6
$9,173.6
$9,173.6
$9,173.6
$11,077.7
$10,568.4
$10,737.4
$10,737.4
$10,210.3
$10,210.3
Average
SERVICE LEVEL ($/population & employment)
Service
Level
Buildings
$179.91
$177.61
$175.28
$172.92
$237.74
$204.28
$203.08
$201.89
$168.01
$167.01
$188.77
Land
$56.69
$55.96
$55.22
$54.48
$104.63
$94.96
$94.40
$93.84
$91.60
$91.06
$79.28
Furniture And Equipment
$5.73
$5.66
$5.59
$5.51
$5.43
$5.36
$5.33
$5.30
$5.26
$5.23
$5.44
Fleet
$386.43
$381.49
$376.47
$371.41
$371.95
$372.43
$381.01
$378.77
$377.73
$375.48
$377.32
Total ($/pop & empl)
$628.76
$620.72
$612.56
$604.32
$719.75
$677.03
$683.82
$679.80
$642.60
$638.78
$650.81
CALCULATION OF MAXIMUM ALLOWABLE FUNDING ENVELOPE
TOWNSHIP OF PERTH EAST
10-Year Funding Envelope Calculation
10-Year Average Service Level 2011 - 2020
$650.81
Net Population & Employment Growth 2021 - 2046
1,006
Maximum Allowable Funding Envelope
$654,697
TABLE 1 - PAGE 3
Appendix C: Engineered Services | 89
Gross
Grants/
Net
Ineligible Cost
Total
DC Eligible Costs
Service
Timing
Project
Subsidies/Other
Municipal
Replacement
DC Eligible
Available DC
2021-
Post
Cost
Recoveries
Cost
& BTE Share
Costs
Reserves
2046
2046
1.0
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
1.1 Vehicles and Fleet
1.1.1 Multi-use Truck
2021
85,000
$
-
$
85,000
$
8,500
$
76,500
$
-
$
76,500
$
-
$
1.1.2 Pickup Truck
2021
50,000
$
-
$
50,000
$
40,000
$
10,000
$
-
$
10,000
$
-
$
1.1.3 Facilties Position Pickup Truck
2022
85,000
$
-
$
85,000
$
-
$
85,000
$
-
$
85,000
$
-
$
1.1.4 Sidewalk Tractor
2027
120,000
$
-
$
120,000
$
-
$
120,000
$
-
$
120,000
$
-
$
Subtotal Vehicles and Fleet
340,000
$
-
$
340,000
$
48,500
$
291,500
$
-
$
291,500
$
-
$
TOTAL SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
340,000
$
-
$
340,000
$
48,500
$
291,500
$
-
$
291,500
$
-
$
Residential Development Charge Calculation
Residential Share of 2021-2030 DC Eligible Costs
53%
$154,495
2021 - 2030 Net Funding Envelope
$654,697
10 Year Growth in Population in New Units
748
Unadjusted Development Charge Per Capita ($)
$206.63
Reserve Fund Balance
$0
Non-Residential Development Charge Calculation
Non-Residential Share of 2021-2030 DC Eligible Costs
47%
137,005
$
10 Year Growth in Square Meters
39,942
Unadjusted Development Charge Per Sq.M ($)
$3.43
APPENDIX C.1.1
TABLE 2
TOWNSHIP OF PERTH EAST
DEVELOPMENT-RELATED CAPITAL PROGRAM
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
Appendix C: Engineered Services | 90
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
0.0
(21.1)
(58.4)
(50.3)
(41.5)
(31.9)
(21.5)
(89.9)
(88.3)
(86.4)
(84.2)
(81.7)
(80.4)
(78.9)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Services Related To A Highway: Public Works : Non Inflated
$45.85
$45.05
$0.00
$0.00
$0.00
$0.00
$63.60
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Services Related To A Highway: Public Works: Inflated
$45.85
$45.95
$0.00
$0.00
$0.00
$0.00
$71.62
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
POPULATION GROWTH
- Population in New Units
97
41
41
41
41
42
21
22
22
22
22
17
18
18
REVENUE - current ($000)
- Dev. Charge Receipts
25.3
10.8
11.1
11.4
11.7
12.0
6.2
6.4
6.6
6.8
7.0
5.7
5.8
6.0
- Interest on Opening Balance
0.0
(1.2)
(3.2)
(2.8)
(2.3)
(1.8)
(1.2)
(4.9)
(4.9)
(4.8)
(4.6)
(4.5)
(4.4)
(4.3)
- Interest on In-year Transactions (excl.int.)
(0.6)
(1.0)
0.2
0.2
0.2
0.2
(1.8)
0.1
0.1
0.1
0.1
0.1
0.1
0.1
TOTAL REVENUE
24.7
8.7
8.1
8.8
9.6
10.4
3.3
1.6
1.9
2.2
2.5
1.3
1.5
1.7
CLOSING CASH BALANCE
(21.1)
(58.4)
(50.3)
(41.5)
(31.9)
(21.5)
(89.9)
(88.3)
(86.4)
(84.2)
(81.7)
(80.4)
(78.9)
(77.2)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
(77.2)
(75.2)
(73.0)
(68.9)
(64.4)
(59.3)
(53.7)
(47.5)
(39.8)
(31.2)
(21.8)
(11.4)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
: Non Inflated
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$154.50
: Inflated
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$163.42
POPULATION GROWTH
- Population in New Units
18
18
22
22
23
23
23
26
26
27
27
28
748
REVENUE - current ($000)
- Dev. Charge Receipts
6.1
6.3
7.9
8.2
8.4
8.7
9.0
10.2
10.5
11.0
11.4
11.8
$242.35
- Interest on Opening Balance
(4.2)
(4.1)
(4.0)
(3.8)
(3.5)
(3.3)
(3.0)
(2.6)
(2.2)
(1.7)
(1.2)
(0.6)
($79.10)
- Interest on In-year Transactions (excl.int.)
0.1
0.1
0.1
0.1
0.1
0.2
0.2
0.2
0.2
0.2
0.2
0.2
$0.17
TOTAL REVENUE
2.0
2.3
4.0
4.5
5.0
5.6
6.2
7.7
8.5
9.4
10.4
11.4
$163.42
CLOSING CASH BALANCE
(75.2)
(73.0)
(68.9)
(64.4)
(59.3)
(53.7)
(47.5)
(39.8)
(31.2)
(21.8)
(11.4)
0.0
2021 Adjusted Charge Per Capita
$260.19
Allocation of Capital Program
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
APPENDIX C.1.1
TABLE 3 - PAGE 1
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
RESIDENTIAL DEVELOPMENT CHARGE
Appendix C: Engineered Services | 91
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
$0.00
($27.42)
($57.92)
($48.10)
($37.20)
($25.16)
($12.18)
($71.73)
($69.22)
($66.45)
($63.40)
($60.04)
($57.64)
($54.98)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Services Related To A Highway: Public Works : Non Inflated
$40.66
$39.95
$0.00
$0.00
$0.00
$0.00
$56.40
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Services Related To A Highway: Public Works: Inflated
$40.66
$40.75
$0.00
$0.00
$0.00
$0.00
$63.52
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
3,342
2,940
2,940
3,000
3,060
3,060
1,320
1,320
1,320
1,320
1,320
1,080
1,080
1,080
REVENUE - current ($000)
- Dev. Charge Receipts
$14.0
$12.5
$12.8
$13.3
$13.8
$14.1
$6.2
$6.3
$6.5
$6.6
$6.7
$5.6
$5.7
$5.8
- Interest on Opening Balance
0.0
(1.5)
(3.2)
(2.6)
(2.0)
(1.4)
(0.7)
(3.9)
(3.8)
(3.7)
(3.5)
(3.3)
(3.2)
(3.0)
- Interest on In-year Transactions (excl.int.)
(0.7)
(0.8)
0.2
0.2
0.2
0.2
(1.6)
0.1
0.1
0.1
0.1
0.1
0.1
0.1
TOTAL REVENUE
13.2
10.2
9.8
10.9
12.0
13.0
4.0
2.5
2.8
3.1
3.4
2.4
2.7
2.9
CLOSING CASH BALANCE
(27.4)
(57.9)
(48.1)
(37.2)
(25.2)
(12.2)
(71.7)
(69.2)
(66.5)
(63.4)
(60.0)
(57.6)
(55.0)
(52.1)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
($52.06)
($48.87)
($45.37)
($42.96)
($40.33)
($37.44)
($34.30)
($30.87)
($25.61)
($19.92)
($13.77)
($7.14)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Services Related To A Highway: Public Works : Non Inflated
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$137.01
Services Related To A Highway: Public Works: Inflated
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$144.92
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
1,080
1,080
840
840
840
840
840
1,080
1,080
1,080
1,080
1,080
39,942
REVENUE - current ($000)
- Dev. Charge Receipts
$6.0
$6.1
$4.8
$4.9
$5.0
$5.1
$5.2
$6.8
$7.0
$7.1
$7.3
$7.4
$202.78
- Interest on Opening Balance
(2.9)
(2.7)
(2.5)
(2.4)
(2.2)
(2.1)
(1.9)
(1.7)
(1.4)
(1.1)
(0.8)
(0.4)
($57.75)
- Interest on In-year Transactions (excl.int.)
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
($0.11)
TOTAL REVENUE
3.2
3.5
2.4
2.6
2.9
3.1
3.4
5.3
5.7
6.1
6.6
7.1
$144.92
CLOSING CASH BALANCE
(48.9)
(45.4)
(43.0)
(40.3)
(37.4)
(34.3)
(30.9)
(25.6)
(19.9)
(13.8)
(7.1)
(0.0)
Allocation of Capital Program
2021 Adjusted Charge Per Square Metre
$4.18
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate:
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
NON-RESIDENTIAL DEVELOPMENT CHARGE
APPENDIX C.1.1
TABLE 3 - PAGE 2
Appendix C: Engineered Services | 92
APPENDIX C.1.2
SERVICES RELATED TO A HIGHWAY:
ROADS & RELATED
Appendix C: Engineered Services | 93
SERVICES RELATED TO A HIGHWAY: ROADS &
RELATED
This section provides the detailed analysis undertaken to establish the development charge
rates for the Roads & Related service in the Township of Perth East. The service category
includes the road network as well as bridges and culverts, streetlights, intersection
improvements, studies, and other related expenditures.
TABLE 1
HISTORICAL SERVICE LEVELS
Table 1 demonstrates that the Township's current road infrastructure comprises 200 km of
roads with a current replacement value estimated at $29.40 million (excluding the
associated land value). The bridges and culverts associated with the road network (102
structures) add another $29.62 million to the value of the inventory. The Township currently
has 21,330 sq.m of sidewalk with an estimated replacement value of $2.77 million.
Additionally, a number of streetlights, road signs, traffic signals, curbs, and gutters add
$1.88 million to the Roads & Related inventory. The current replacement value of the
inventory of capital assets for the Roads & Related Service is $63.67 million.
Table 1 also summarizes the 10-year replacement value of the Township's Roads & Related
infrastructure and shows the calculation of the ten year historical average service level. As
shown, the 10-year historical average service level is calculated to be $3,950.83 per capita
and employment.
The maximum allowable funding envelope is defined as the 10-year historical service level
($3,950.83 per capita and employment) multiplied by the forecast increase in net population
and employment over the planning period (1,006 persons and jobs). The resulting maximum
allowable funding envelope of $3.97 million is the value of capital infrastructure that would
have to be constructed over the 2021-2046 period so that the 10-year historical service level
for Roads & Related is maintained.
TABLE 2
2021 - 2046 CAPITAL PROGRAM AND CALCULATION OF
"UNADJUSTED" DEVELOPMENT CHARGES
The 2021-2046 capital program for Roads & Related Services identifies capital projects
throughout the Township's road network and is set out in Table 2. The total cost of the
capital program is $2.21 million and includes five projects located throughout the Township.
Appendix C: Engineered Services | 94
Approximately $275,000 in grants and subsidies has been identified to reflect the capital
cost contribution of the neighbouring municipality of paving the boundary road.
Capital costs have been allocated as development-related or non-development related (the
"benefit to existing" share) based on the demands of new development on the particular
project and need to improve the transportation network to accommodate the development-
related impacts. Approximately $1.31 million of the capital program (nearly 60 per cent) has
been identified as a benefit to existing share to represent the share of costs which the
Township would be incurring in the absence of development to maintain the roads.
The cost eligible for recovery from development charges during the planning period from
2021 to 2046, excluding the benefit to existing share, is approximately $631,800. Of this
cost, 53 per cent (approximately $334,854) has been allocated to new residential
development and 47 per cent (approximately $296,946) to new non-residential
development. The allocation of costs is based on the ratio of forecast growth in population
in new housing units and employment in new non-residential floor space over the planning
period.
Dividing the residential share of the capital program ($334,854) by the anticipated growth in
new units (748) yields an unadjusted residential development charge of $447.86 per capita.
Likewise, dividing the non-residential share of the capital program ($296,946) by the
forecast non-residential growth in square metres (39,942) yields and unadjusted non-
residential development charge of $7.43 per square metre.
TABLE 3
CASH FLOW ANALYSIS
After cash flow considerations, the residential development charge increases to $595.47 per
capita and $9.56 per square metre of non-residential building space. The increase in the
charge is the result of significant costs in the early years of the program.
10-year Hist.
Service Level
$/pop & emp
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$3,950.83
$2,212,600
$631,800
$447.86
$7.43
$595.47
$9.56
2021-2046
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED SUMMARY
Development Charge
Development Charge
Development-Related Capital Program
Unadjusted
Adjusted
Appendix C: Engineered Services | 95
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
ROADS
UNIT COST
Type of Road
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/km)
High Class Bitumen
180
180
180
180
180
180
180
180
180
180
180
$147,000
Low Class Bitumen
20
20
20
20
20
20
20
20
20
20
20
$147,000
Total (km)
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
Total ($000)
$29,400.0
$29,400.0
$29,400.0
$29,400.0
$29,400.0
$29,400.0
$29,400.0
$29,400.0
$29,400.0
$29,400.0
$29,400.0
BRIDGES & CULVERTS
UNIT COST
Description
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/unit)
Bridges
33
33
33
33
33
33
33
33
33
39
39
$501,100
Culverts
62
62
62
62
62
62
62
62
63
63
63
$160,000
Total (#)
95
95
95
95
95
95
95
95
96
102
102
Total ($000)
$26,456.3
$26,456.3
$26,456.3
$26,456.3
$26,456.3
$26,456.3
$26,456.3
$26,456.3
$26,616.3
$29,622.9
$29,622.9
SIDEWALKS
UNIT COST
Description
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/m)
Sidewalks
21,330
21,330
21,330
21,330
21,330
21,330
21,330
21,330
21,330
21,330
21,330
$130
Total (km)
21,330.0
21,330.0
21,330.0
21,330.0
21,330.0
21,330.0
21,330.0
21,330.0
21,330.0
21,330.0
21,330.0
Total ($000)
$2,772.9
$2,772.9
$2,772.9
$2,772.9
$2,772.9
$2,772.9
$2,772.9
$2,772.9
$2,772.9
$2,772.9
$2,772.9
APPENDIX C.1.2
TABLE 1 - PAGE 1
# of Bridges & Culverts
# of Lane Kilometres
# of Square Metres
Appendix C: Engineered Services | 96
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
ROADS AND RELATED
OTHER ROADS AND RELATED
UNIT COST
Description
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
($/unit)
Streetlights
649
650
650
650
650
650
660
660
660
660
660
$980
Road Signs
11
11
11
11
11
11
11
11
11
11
11
$10,990
Traffic Signals
2
2
2
2
2
2
2
2
2
3
3
$66,200
Curb and Gutter (m)
10,910
10,910
10,910
11,180
11,370
11,370
11,370
11,370
11,370
11,370
11,370
$80
Total (km)
11,572.00
11,573.00
11,573.00
11,843.00
12,033.00
12,033.00
12,043.00
12,043.00
12,043.00
12,044.00
12,044.00
Total ($000)
$1,762.1
$1,763.1
$1,763.1
$1,784.7
$1,799.9
$1,799.9
$1,809.7
$1,809.7
$1,809.7
$1,875.9
$1,875.9
# of Units
TABLE 1 - PAGE 2
APPENDIX C.1.2
Appendix C: Engineered Services | 97
APPENDIX C.1.2
TOWNSHIP OF PERTH EAST
INVENTORY OF CAPITAL ASSETS
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Historical Population
12,000
12,059
12,119
12,179
12,239
12,300
12,340
12,380
12,420
12,460
Historical Employment
2,590
2,720
2,857
3,001
3,152
3,310
3,362
3,415
3,469
3,524
Total Historical Population & Employment
14,590
14,779
14,976
15,180
15,391
15,610
15,702
15,795
15,889
15,984
INVENTORY SUMMARY ($000)
Roads
$29,400.0
$29,400.0
$29,400.0
$29,400.0
$29,400.0
$29,400.0
$29,400.0
$29,400.0
$29,400.0
$29,400.0
Bridges & Culverts
$26,456.3
$26,456.3
$26,456.3
$26,456.3
$26,456.3
$26,456.3
$26,456.3
$26,456.3
$26,616.3
$29,622.9
Sidewalks
$2,772.9
$2,772.9
$2,772.9
$2,772.9
$2,772.9
$2,772.9
$2,772.9
$2,772.9
$2,772.9
$2,772.9
Other Roads And Related
$1,762.1
$1,763.1
$1,763.1
$1,784.7
$1,799.9
$1,799.9
$1,809.7
$1,809.7
$1,809.7
$1,875.9
Total ($000)
$60,391.3
$60,392.3
$60,392.3
$60,413.9
$60,429.1
$60,429.1
$60,438.9
$60,438.9
$60,598.9
$63,671.7
Average
SERVICE LEVEL ($/population & employment)
Service
Level
Roads
$2,015.08
$1,989.31
$1,963.14
$1,936.76
$1,910.21
$1,883.41
$1,872.37
$1,861.34
$1,850.33
$1,839.34
$1,912.1
Bridges & Culverts
$1,813.32
$1,790.13
$1,766.58
$1,742.84
$1,718.95
$1,694.83
$1,684.89
$1,674.97
$1,675.13
$1,853.28
$1,741.5
Sidewalks
$190.05
$187.62
$185.16
$182.67
$180.16
$177.64
$176.59
$175.55
$174.52
$173.48
$180.3
Other Roads And Related
$120.78
$119.30
$117.73
$117.57
$116.94
$115.30
$115.25
$114.57
$113.90
$117.36
$116.9
Total ($/pop & empl)
$4,139.23
$4,086.36
$4,032.60
$3,979.83
$3,926.26
$3,871.18
$3,849.11
$3,826.44
$3,813.87
$3,983.46
$3,950.83
CALCULATION OF MAXIMUM ALLOWABLE FUNDING ENVELOPE
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
10-Year Funding Envelope Calculation
10-Year Average Service Level 2011 - 2020
$3,950.83
Net Population & Employment Growth 2021 - 2046
1,006
Maximum Allowable Funding Envelope
$3,974,402
TABLE 1 - PAGE 3
Appendix C: Engineered Services | 98
Gross
Grants/
Net
Ineligible Cost
Total
DC Eligible Costs
Service
Timing
Project
Subsidies/Other
Municipal
Replacement
DC Eligible
Available DC
2021-
Post
Cost
Recoveries
Cost
& BTE Share
Costs
Reserves
2046
2046
2.0
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
2.1 Roads Construction
2.1.1 Road 103 (Phase I)
2023
275,000
$
137,500
$
137,500
$
82,500
$
55,000
$
-
$
55,000
$
-
$
2.1.2 Road 103 (Phae II)
2024
275,000
$
137,500
$
137,500
$
82,500
$
55,000
$
-
$
55,000
$
-
$
2.1.3 Line 67
2021
608,100
$
-
$
608,100
$
508,100
$
100,000
$
-
$
100,000
$
-
$
2.1.4 Line 33 (Phase I)
2021
154,500
$
-
$
154,500
$
92,700
$
61,800
$
-
$
61,800
$
-
$
2.1.5 Line 33 (Phase II)
2022
900,000
$
-
$
900,000
$
540,000
$
360,000
$
-
$
360,000
$
-
$
Subtotal Roads Construction
2,212,600
$
275,000
$
1,937,600
$
1,305,800
$
631,800
$
-
$
631,800
$
-
$
TOTAL SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
2,212,600
$
275,000
$
1,937,600
$
1,305,800
$
631,800
$
-
$
631,800
$
-
$
Residential Development Charge Calculation
Residential Share of 2021-2046 DC Eligible Costs
53%
$334,854
2021 - 2030 Net Funding Envelope
$3,974,402
Growth in Population in New Units
748
Unadjusted Development Charge Per Capita ($)
$447.86
Reserve Fund Balance
$0
Non-Residential Development Charge Calculation
Non-Residential Share of 2021-2046 DC Eligible Costs
47%
296,946
$
Growth in Square Meters
39,942
Unadjusted Development Charge Per Sq.M ($)
$7.43
TABLE 2
APPENDIX C.1.2
TOWNSHIP OF PERTH EAST
DEVELOPMENT-RELATED CAPITAL PROGRAM
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
Appendix C: Engineered Services | 99
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
0.0
(28.6)
(204.8)
(221.1)
(238.4)
(224.3)
(208.7)
(205.7)
(202.0)
(197.7)
(192.7)
(186.9)
(184.1)
(180.7)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Services Related To A Highway: Roads & Related : Non Inflated
$85.75
$190.80
$29.15
$29.15
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Services Related To A Highway: Roads & Related: Inflated
$85.75
$194.62
$30.33
$30.93
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
POPULATION GROWTH
- Population in New Units
97
41
41
41
41
42
21
22
22
22
22
17
18
18
REVENUE - current ($000)
- Dev. Charge Receipts
57.9
24.7
25.4
26.0
26.7
27.4
14.3
14.7
15.2
15.6
16.1
12.9
13.3
13.7
- Interest on Opening Balance
0.0
(1.6)
(11.3)
(12.2)
(13.1)
(12.3)
(11.5)
(11.3)
(11.1)
(10.9)
(10.6)
(10.3)
(10.1)
(9.9)
- Interest on In-year Transactions (excl.int.)
(0.8)
(4.7)
(0.1)
(0.1)
0.5
0.5
0.3
0.3
0.3
0.3
0.3
0.2
0.2
0.2
TOTAL REVENUE
57.1
18.5
14.0
13.7
14.1
15.5
3.1
3.7
4.3
5.0
5.8
2.9
3.4
4.0
CLOSING CASH BALANCE
(28.6)
(204.8)
(221.1)
(238.4)
(224.3)
(208.7)
(205.7)
(202.0)
(197.7)
(192.7)
(186.9)
(184.1)
(180.7)
(176.7)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
(176.7)
(172.1)
(167.0)
(157.7)
(147.3)
(135.8)
(122.9)
(108.7)
(91.1)
(71.5)
(49.9)
(26.1)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Services Related To A Highway: Roads & Related : Non Inflated
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$334.85
Services Related To A Highway: Roads & Related: Inflated
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$341.63
POPULATION GROWTH
- Population in New Units
18
18
22
22
23
23
23
26
26
27
27
28
748
REVENUE - current ($000)
- Dev. Charge Receipts
14.0
14.4
18.1
18.7
19.3
20.0
20.6
23.2
24.1
25.1
26.1
27.1
$554.63
- Interest on Opening Balance
(9.7)
(9.5)
(9.2)
(8.7)
(8.1)
(7.5)
(6.8)
(6.0)
(5.0)
(3.9)
(2.7)
(1.4)
($214.65)
- Interest on In-year Transactions (excl.int.)
0.2
0.3
0.3
0.3
0.3
0.3
0.4
0.4
0.4
0.4
0.5
0.5
$1.65
TOTAL REVENUE
4.6
5.2
9.3
10.4
11.6
12.8
14.2
17.7
19.5
21.6
23.8
26.1
$341.63
CLOSING CASH BALANCE
(172.1)
(167.0)
(157.7)
(147.3)
(135.8)
(122.9)
(108.7)
(91.1)
(71.5)
(49.9)
(26.1)
(0.0)
2021 Adjusted Charge Per Capita
$595.47
Allocation of Capital Program
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
APPENDIX C.1.2
TABLE 3 - PAGE 1
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
RESIDENTIAL DEVELOPMENT CHARGE
Appendix C: Engineered Services | 100
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
$0.00
($45.29)
($195.65)
($204.01)
($212.17)
($191.61)
($169.27)
($164.12)
($158.39)
($152.05)
($145.06)
($137.38)
($131.87)
($125.80)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Services Related To A Highway: Roads & Related : Non Inflated
$76.05
$169.20
$25.85
$25.85
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Services Related To A Highway: Roads & Related: Inflated
$76.05
$172.58
$26.89
$27.43
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
3,342
2,940
2,940
3,000
3,060
3,060
1,320
1,320
1,320
1,320
1,320
1,080
1,080
1,080
REVENUE - current ($000)
- Dev. Charge Receipts
$32.0
$28.7
$29.3
$30.4
$31.7
$32.3
$14.2
$14.5
$14.8
$15.1
$15.4
$12.8
$13.1
$13.4
- Interest on Opening Balance
0.0
(2.5)
(10.8)
(11.2)
(11.7)
(10.5)
(9.3)
(9.0)
(8.7)
(8.4)
(8.0)
(7.6)
(7.3)
(6.9)
- Interest on In-year Transactions (excl.int.)
(1.2)
(4.0)
0.0
0.1
0.6
0.6
0.2
0.3
0.3
0.3
0.3
0.2
0.2
0.2
TOTAL REVENUE
30.8
22.2
18.5
19.3
20.6
22.3
5.2
5.7
6.3
7.0
7.7
5.5
6.1
6.7
CLOSING CASH BALANCE
(45.3)
(195.6)
(204.0)
(212.2)
(191.6)
(169.3)
(164.1)
(158.4)
(152.1)
(145.1)
(137.4)
(131.9)
(125.8)
(119.1)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
($119.12)
($111.81)
($103.82)
($98.31)
($92.27)
($85.67)
($78.47)
($70.64)
($58.60)
($45.58)
($31.51)
($16.34)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Services Related To A Highway: Roads & Related : Non Inflated
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$296.95
Services Related To A Highway: Roads & Related: Inflated
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$302.96
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
1,080
1,080
840
840
840
840
840
1,080
1,080
1,080
1,080
1,080
39,942
REVENUE - current ($000)
- Dev. Charge Receipts
$13.6
$13.9
$11.0
$11.2
$11.5
$11.7
$11.9
$15.7
$16.0
$16.3
$16.6
$16.9
$463.98
- Interest on Opening Balance
(6.6)
(6.1)
(5.7)
(5.4)
(5.1)
(4.7)
(4.3)
(3.9)
(3.2)
(2.5)
(1.7)
(0.9)
($161.96)
- Interest on In-year Transactions (excl.int.)
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.3
0.3
0.3
0.3
0.3
$0.94
TOTAL REVENUE
7.3
8.0
5.5
6.0
6.6
7.2
7.8
12.0
13.0
14.1
15.2
16.3
$302.96
CLOSING CASH BALANCE
(111.8)
(103.8)
(98.3)
(92.3)
(85.7)
(78.5)
(70.6)
(58.6)
(45.6)
(31.5)
(16.3)
0.0
Allocation of Capital Program
2021 Adjusted Charge Per Square Metre
$9.56
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate:
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
TABLE 3 - PAGE 2
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
NON-RESIDENTIAL DEVELOPMENT CHARGE
APPENDIX C.1.2
Appendix C: Engineered Services | 101
APPENDIX C.2
WATER SERVICES
Appendix C: Engineered Services | 102
WATER SERVICES
As part of this Development Charges Study for the Township of Perth East, projects related to
Water infrastructure are being considered for recovery. In order to properly service the
Township's growing population, development-related works are being studied and planned for.
TABLE 1
2021-2046 DEVELOPMENT RELATED CAPITAL PROGRAM
& CALCULATION OF THE "UNADJUSTED" DEVELOPMENT
CHARGES
The Township is planning a redevelopment of the Milverton well as well as fleet addition
and Water Master Plan. The total cost of the three projects identified in the capital plan
amounts to $500,000. Approximately $60,000 in grants and contributions has been netted
off the total gross program. This funding share represents:
50% of the Water and Waster Master Plan will be funded from wastewater services
20% of the pick-up truck is to be funded by public works representing the share of
the truck being used to maintain roads.
Given the nature of the Milverton well redevelopment, a share of $262,500 has been
identified as benefit to the existing residents as it represents a replacement of the existing
infrastructure and therefore removed from the development charges calculation. Although,
the capacity of the well is being expanded by 25% and only the capacity associated with the
expansion is considered for recovery from DCs (being $87,500). Overall, the resulting
$177,500 is the development-related share of the capital program eligible for recovery
during the 2021-2046 planning period.
Of the $177,500; $94,075, or 53 per cent, is allocated to residential development. This
results in a charge of $133.85 per capita. The remaining $83,425 (47 per cent) is allocated
to non-residential development, yielding in a charge of $2.22 per square metre. Please note
the costs are only attributable against the urban serviced areas in the Township where
water services are planned.
Appendix C: Engineered Services | 103
TABLE 2
CASH FLOW ANALYSIS
After taking into account the timing of projects and development, the residential charge
increases to $158.55 per capita and the non-residential charge increases to $2.55 per
square metre.
10-year Hist.
2021-2046
Service Level
$/pop & emp
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$500,000
$177,500
$133.85
$2.22
$158.55
$2.55
WATER SERVICES SUMMARY
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Development Charge
Appendix C: Engineered Services | 104
Gross
Grants/
Net
Ineligible Cost
Total
DC Eligible Costs
Service
Timing
Project
Subsidies/Other
Municipal
Replacement
DC Eligible
Available DC
2021-
Post
Cost
Recoveries
Cost
& BTE Share
Costs
Reserves
2046
2046
3.0
WATER SERVICES
3.1 WATER SERVICES
3.1.1 Milverton Well
2024
350,000
$
-
$
350,000
$
262,500
$
87,500
$
-
$
87,500
$
-
$
3.1.2 Master Plan (Water Share)
various
100,000
$
50,000
$
50,000
$
-
$
50,000
$
-
$
50,000
$
-
$
3.1.3 Pickup Truck
2021
50,000
$
10,000
$
40,000
$
-
$
40,000
$
-
$
40,000
$
-
$
500,000
$
60,000
$
440,000
$
262,500
$
177,500
$
-
$
177,500
$
-
$
TOTAL WATER SERVICES
500,000
$
60,000
$
440,000
$
262,500
$
177,500
$
-
$
177,500
$
-
$
Residential Development Charge Calculation
Residential Share of 2021-2046 DC Eligible Costs
53%
$94,075
2021 - 2030 Net Funding Envelope
Growth in Population in New Units
703
Unadjusted Development Charge Per Capita ($)
$133.85
Reserve Fund Balance
Non-Residential Development Charge Calculation
Non-Residential Share of 2021-2046 DC Eligible Costs
47%
83,425
$
Growth in Square Meters
37,546
Unadjusted Development Charge Per Sq.M ($)
$2.22
APPENDIX C.2
TABLE 1
TOWNSHIP OF PERTH EAST
DEVELOPMENT-RELATED CAPITAL PROGRAM
WATER SERVICES
Appendix C: Engineered Services | 105
WATER SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
0.0
(7.9)
(3.1)
2.1
(42.9)
(39.5)
(35.9)
(35.4)
(34.8)
(34.0)
(33.2)
(32.2)
(31.9)
(31.6)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Water Services : Non Inflated
$22.22
$1.02
$1.02
$47.39
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
Water Services : Inflated
$22.22
$1.04
$1.06
$50.30
$1.10
$1.13
$1.15
$1.17
$1.19
$1.22
$1.24
$1.27
$1.29
$1.32
POPULATION GROWTH
- Population in New Units
91
38
38
39
39
39
20
20
20
21
21
16
17
17
REVENUE - current ($000)
- Dev. Charge Receipts
14.5
6.2
6.3
6.5
6.7
6.9
3.6
3.7
3.8
3.9
4.0
3.2
3.3
3.4
- Interest on Opening Balance
0.0
(0.4)
(0.2)
0.1
(2.4)
(2.2)
(2.0)
(1.9)
(1.9)
(1.9)
(1.8)
(1.8)
(1.8)
(1.7)
- Interest on In-year Transactions (excl.int.)
(0.2)
0.1
0.1
(1.2)
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
TOTAL REVENUE
14.3
5.8
6.3
5.4
4.4
4.8
1.6
1.8
1.9
2.1
2.2
1.5
1.6
1.7
CLOSING CASH BALANCE
(7.9)
(3.1)
2.1
(42.9)
(39.5)
(35.9)
(35.4)
(34.8)
(34.0)
(33.2)
(32.2)
(31.9)
(31.6)
(31.2)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
(31.2)
(30.7)
(30.1)
(28.6)
(26.9)
(24.9)
(22.7)
(20.2)
(17.0)
(13.4)
(9.4)
(4.9)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Water Services : Non Inflated
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
$1.02
$94.08
Water Services : Inflated
$1.34
$1.37
$1.40
$1.43
$1.46
$1.48
$1.51
$1.54
$1.58
$1.61
$1.64
$1.67
$104.73
POPULATION GROWTH
- Population in New Units
17
17
21
21
21
22
22
24
25
25
26
26
703
REVENUE - current ($000)
- Dev. Charge Receipts
3.5
3.6
4.5
4.7
4.8
5.0
5.2
5.8
6.0
6.3
6.5
6.8
$138.81
- Interest on Opening Balance
(1.7)
(1.7)
(1.7)
(1.6)
(1.5)
(1.4)
(1.2)
(1.1)
(0.9)
(0.7)
(0.5)
(0.3)
($34.16)
- Interest on In-year Transactions (excl.int.)
0.0
0.0
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
$0.08
TOTAL REVENUE
1.8
2.0
2.9
3.2
3.4
3.7
4.0
4.8
5.2
5.6
6.1
6.6
$104.73
CLOSING CASH BALANCE
(30.7)
(30.1)
(28.6)
(26.9)
(24.9)
(22.7)
(20.2)
(17.0)
(13.4)
(9.4)
(4.9)
0.0
2021 Adjusted Charge Per Capita
$158.55
Allocation of Capital Program
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
APPENDIX C.2
TABLE 2 - PAGE 1
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WATER SERVICES
RESIDENTIAL DEVELOPMENT CHARGE
Appendix C: Engineered Services | 106
WATER SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
$0.00
($12.03)
($6.32)
($0.18)
($38.19)
($33.22)
($27.84)
($26.78)
($25.62)
($24.34)
($22.94)
($21.40)
($20.46)
($19.41)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Water Services : Non Inflated
$19.70
$0.90
$0.90
$42.03
$0.90
$0.90
$0.90
$0.90
$0.90
$0.90
$0.90
$0.90
$0.90
$0.90
Water Services : Inflated
$19.70
$0.92
$0.94
$44.60
$0.98
$1.00
$1.02
$1.04
$1.06
$1.08
$1.10
$1.12
$1.15
$1.17
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
3,142
2,764
2,764
2,820
2,876
2,876
1,241
1,241
1,241
1,241
1,241
1,015
1,015
1,015
REVENUE - current ($000)
- Dev. Charge Receipts
$8.0
$7.2
$7.3
$7.6
$7.9
$8.1
$3.6
$3.6
$3.7
$3.8
$3.9
$3.2
$3.3
$3.3
- Interest on Opening Balance
0.0
(0.7)
(0.3)
(0.0)
(2.1)
(1.8)
(1.5)
(1.5)
(1.4)
(1.3)
(1.3)
(1.2)
(1.1)
(1.1)
- Interest on In-year Transactions (excl.int.)
(0.3)
0.1
0.1
(1.0)
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
TOTAL REVENUE
7.7
6.6
7.1
6.6
5.9
6.4
2.1
2.2
2.3
2.5
2.6
2.1
2.2
2.3
CLOSING CASH BALANCE
(12.0)
(6.3)
(0.2)
(38.2)
(33.2)
(27.8)
(26.8)
(25.6)
(24.3)
(22.9)
(21.4)
(20.5)
(19.4)
(18.3)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
($18.27)
($17.02)
($15.65)
($14.96)
($14.21)
($13.39)
($12.48)
($11.50)
($9.54)
($7.42)
($5.13)
($2.66)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Water Services : Non Inflated
$0.90
$0.90
$0.90
$0.90
$0.90
$0.90
$0.90
$0.90
$0.90
$0.90
$0.90
$0.90
$83.43
Water Services : Inflated
$1.19
$1.22
$1.24
$1.27
$1.29
$1.32
$1.34
$1.37
$1.40
$1.43
$1.45
$1.48
$92.88
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
1,015
1,015
790
790
790
790
790
1,015
1,015
1,015
1,015
1,015
37,546
REVENUE - current ($000)
- Dev. Charge Receipts
$3.4
$3.5
$2.8
$2.8
$2.9
$2.9
$3.0
$3.9
$4.0
$4.1
$4.2
$4.2
$116.11
- Interest on Opening Balance
(1.0)
(0.9)
(0.9)
(0.8)
(0.8)
(0.7)
(0.7)
(0.6)
(0.5)
(0.4)
(0.3)
(0.1)
($23.15)
- Interest on In-year Transactions (excl.int.)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
($0.08)
TOTAL REVENUE
2.4
2.6
1.9
2.0
2.1
2.2
2.3
3.3
3.5
3.7
3.9
4.1
$92.88
CLOSING CASH BALANCE
(17.0)
(15.6)
(15.0)
(14.2)
(13.4)
(12.5)
(11.5)
(9.5)
(7.4)
(5.1)
(2.7)
(0.0)
Allocation of Capital Program
2021 Adjusted Charge Per Square Metre
$2.55
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate:
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WATER SERVICES
NON-RESIDENTIAL DEVELOPMENT CHARGE
APPENDIX C.2
TABLE 2 - PAGE 2
TOWNSHIP OF PERTH EAST
Appendix C: Engineered Services | 107
APPENDIX C.3
WASTEWATER SERVICES
Appendix C: Engineered Services | 108
WASTEWATER SERVICES
As part of this Development Charges Study for the Township of Perth East, projects related to
Wastewater infrastructure are being considered for recovery through development charges.
Details on the development-related wastewater capital program is summarized below.
TABLE 1
2021-2046 DEVELOPMENT RELATED CAPITAL PROGRAM
& CALCULATION OF THE "UNADJUSTED" DEVELOPMENT
CHARGES
The Township is planning to expand the existing Millstreet Sewage Pumping Station due to
constrained capacity as a result of growth in the Township. It is assumed the benefit of the
pumping station will be entirely attributable to development as this is necessary
infrastructure required to ensure growth in this area can continue, thus, the entire cost of
the project ($800,000) has been brought forward to the development charges calculation.
In addition to the sewage pumping station, an a provision for inflow and infiltration works
(growth-related share) over the planning horizon as well as a Water and Wastewater Master
Plan are included in the capital plan. The total cost of the development-related capital
program for Wastewater Services amounts to $1.00 million before deductions (see Table 1).
The entire $1.00 million development-related capital program is not to be fully recovered
from future development charges; a deduction of $50,000 is made to the gross value to
account for the shared cost of the Water and Wastewater Master Plan. No non-growth-
related shares have been identified, thus, after netting off the portion of the Master Plan
that is to be funded by water services, the result is a development-related and development
charge recoverable share of the capital program of $950,000.
Of the $950,000, $503,500, or 53 per cent, is allocated to residential development which
results in a charge of $716.40 per capita and $446,500 (47 per cent) is allocated to non-
residential development resulting in a charge of $11.89 per square metre. Please note the
costs are only attributable against the urban serviced areas in the Township where
wastewater services are planned.
Appendix C: Engineered Services | 109
TABLE 2
CASH FLOW ANALYSIS
After taking into account reserve fund balances and interest costs, the residential charge
increases $912.06 per capita and the non-residential charge increases to $14.62 per square
metre.
10-year Hist.
2021-2046
Service Level
$/pop & emp
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$1,000,000
$950,000
$716.40
$11.89
$912.06
$14.62
WASTEWATER SERVICES SUMMARY
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Development Charge
Appendix C: Engineered Services | 110
Gross
Grants/
Net
Ineligible Cost
Total
DC Eligible Costs
Service
Timing
Project
Subsidies/Other
Municipal
Replacement
DC Eligible
Available DC
2021-
Post
Cost
Recoveries
Cost
& BTE Share
Costs
Reserves
2046
2046
4.0
WASTEWATER SERVICES
4.1 WASTEWATER SERVICES
4.1.1 Millstreet Sewage Pumping Station
2022
800,000
$
-
$
800,000
$
-
$
800,000
$
-
$
800,000
$
-
$
4.1.2 Master Plan
various
100,000
$
50,000
$
50,000
$
-
$
50,000
$
-
$
50,000
$
-
$
4.1.3 Inflow & Infiltration System
various
100,000
$
-
$
100,000
$
-
$
100,000
$
-
$
100,000
$
-
$
1,000,000
$
50,000
$
950,000
$
-
$
950,000
$
-
$
950,000
$
-
$
TOTAL WASTEWATER SERVICES
1,000,000
$
50,000
$
950,000
$
-
$
950,000
$
-
$
950,000
$
-
$
Residential Development Charge Calculation
Residential Share of 2021-2046 DC Eligible Costs
53%
$503,500
2021 - 2030 Net Funding Envelope
Growth in Population in New Units
703
Unadjusted Development Charge Per Capita ($)
$716.40
Reserve Fund Balance
Non-Residential Development Charge Calculation
Non-Residential Share of 2021-2046 DC Eligible Costs
47%
446,500
$
Growth in Square Meters
37,546
Unadjusted Development Charge Per Sq.M ($)
$11.89
APPENDIX C.3
TABLE 1
TOWNSHIP OF PERTH EAST
DEVELOPMENT-RELATED CAPITAL PROGRAM
WASTEWATER SERVICES
Appendix C: Engineered Services | 111
WASTEWATER SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
0.0
81.7
(326.5)
(310.5)
(292.8)
(273.1)
(251.4)
(247.8)
(243.5)
(238.3)
(232.2)
(225.3)
(222.6)
(219.3)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Wastewater Services : Non Inflated
$3.06
$427.06
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
Wastewater Services : Inflated
$3.06
$435.60
$3.18
$3.24
$3.31
$3.38
$3.44
$3.51
$3.58
$3.65
$3.73
$3.80
$3.88
$3.96
POPULATION GROWTH
- Population in New Units
91
38
38
39
39
39
20
20
20
21
21
16
17
17
REVENUE - current ($000)
- Dev. Charge Receipts
83.4
35.6
36.5
37.5
38.4
39.5
20.6
21.2
21.8
22.5
23.1
18.6
19.1
19.7
- Interest on Opening Balance
0.0
2.9
(18.0)
(17.1)
(16.1)
(15.0)
(13.8)
(13.6)
(13.4)
(13.1)
(12.8)
(12.4)
(12.2)
(12.1)
- Interest on In-year Transactions (excl.int.)
1.4
(11.0)
0.6
0.6
0.6
0.6
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
TOTAL REVENUE
84.8
27.4
19.1
21.0
23.0
25.1
7.1
7.9
8.8
9.7
10.7
6.5
7.2
7.9
CLOSING CASH BALANCE
81.7
(326.5)
(310.5)
(292.8)
(273.1)
(251.4)
(247.8)
(243.5)
(238.3)
(232.2)
(225.3)
(222.6)
(219.3)
(215.4)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
(215.4)
(210.8)
(205.4)
(194.5)
(182.1)
(168.3)
(152.8)
(135.6)
(113.8)
(89.5)
(62.6)
(32.8)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Wastewater Services : Non Inflated
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
$3.06
$503.50
Wastewater Services : Inflated
$4.03
$4.12
$4.20
$4.28
$4.37
$4.45
$4.54
$4.63
$4.73
$4.82
$4.92
$5.02
$535.44
POPULATION GROWTH
- Population in New Units
17
17
21
21
21
22
22
24
25
25
26
26
703
REVENUE - current ($000)
- Dev. Charge Receipts
20.2
20.7
26.1
26.9
27.8
28.7
29.7
33.4
34.7
36.1
37.5
39.0
$798.53
- Interest on Opening Balance
(11.8)
(11.6)
(11.3)
(10.7)
(10.0)
(9.3)
(8.4)
(7.5)
(6.3)
(4.9)
(3.4)
(1.8)
($263.70)
- Interest on In-year Transactions (excl.int.)
0.3
0.3
0.4
0.4
0.4
0.4
0.4
0.5
0.5
0.5
0.6
0.6
$0.60
TOTAL REVENUE
8.6
9.4
15.2
16.6
18.2
19.9
21.7
26.5
29.0
31.7
34.7
37.8
$535.44
CLOSING CASH BALANCE
(210.8)
(205.4)
(194.5)
(182.1)
(168.3)
(152.8)
(135.6)
(113.8)
(89.5)
(62.6)
(32.8)
(0.0)
2021 Adjusted Charge Per Capita
$912.06
Allocation of Capital Program
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
APPENDIX C.3
TABLE 2 - PAGE 1
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WASTEWATER SERVICES
RESIDENTIAL DEVELOPMENT CHARGE
Appendix C: Engineered Services | 112
WASTEWATER SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
$0.00
$43.99
($309.03)
($286.11)
($260.25)
($231.23)
($199.74)
($193.04)
($185.62)
($177.43)
($168.42)
($158.55)
($151.91)
($144.61)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Wastewater Services : Non Inflated
$2.71
$378.71
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
Wastewater Services : Inflated
$2.71
$386.29
$2.82
$2.88
$2.94
$2.99
$3.05
$3.11
$3.18
$3.24
$3.31
$3.37
$3.44
$3.51
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
3,142
2,764
2,764
2,820
2,876
2,876
1,241
1,241
1,241
1,241
1,241
1,015
1,015
1,015
REVENUE - current ($000)
- Dev. Charge Receipts
$45.9
$41.2
$42.0
$43.8
$45.5
$46.4
$20.4
$20.8
$21.3
$21.7
$22.1
$18.5
$18.8
$19.2
- Interest on Opening Balance
0.0
1.5
(17.0)
(15.7)
(14.3)
(12.7)
(11.0)
(10.6)
(10.2)
(9.8)
(9.3)
(8.7)
(8.4)
(8.0)
- Interest on In-year Transactions (excl.int.)
0.8
(9.5)
0.7
0.7
0.7
0.8
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
TOTAL REVENUE
46.7
33.3
25.7
28.7
32.0
34.5
9.8
10.5
11.4
12.2
13.2
10.0
10.7
11.5
CLOSING CASH BALANCE
44.0
(309.0)
(286.1)
(260.3)
(231.2)
(199.7)
(193.0)
(185.6)
(177.4)
(168.4)
(158.5)
(151.9)
(144.6)
(136.6)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
($136.60)
($127.82)
($118.23)
($112.39)
($105.99)
($98.98)
($91.33)
($82.99)
($68.84)
($53.54)
($37.02)
($19.20)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Wastewater Services : Non Inflated
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
$2.71
$446.50
Wastewater Services : Inflated
$3.58
$3.65
$3.72
$3.80
$3.87
$3.95
$4.03
$4.11
$4.19
$4.28
$4.36
$4.45
$474.82
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
1,015
1,015
790
790
790
790
790
1,015
1,015
1,015
1,015
1,015
37,546
REVENUE - current ($000)
- Dev. Charge Receipts
$19.6
$20.0
$15.9
$16.2
$16.5
$16.8
$17.2
$22.5
$23.0
$23.4
$23.9
$24.4
$666.91
- Interest on Opening Balance
(7.5)
(7.0)
(6.5)
(6.2)
(5.8)
(5.4)
(5.0)
(4.6)
(3.8)
(2.9)
(2.0)
(1.1)
($192.00)
- Interest on In-year Transactions (excl.int.)
0.3
0.3
0.2
0.2
0.2
0.2
0.2
0.3
0.3
0.3
0.3
0.3
($0.09)
TOTAL REVENUE
12.4
13.2
9.6
10.2
10.9
11.6
12.4
18.3
19.5
20.8
22.2
23.6
$474.82
CLOSING CASH BALANCE
(127.8)
(118.2)
(112.4)
(106.0)
(99.0)
(91.3)
(83.0)
(68.8)
(53.5)
(37.0)
(19.2)
0.0
Allocation of Capital Program
2021 Adjusted Charge Per Square Metre
$14.62
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate:
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WASTEWATER SERVICES
NON-RESIDENTIAL DEVELOPMENT CHARGE
APPENDIX C.3
TABLE 2 - PAGE 2
Appendix C: Engineered Services | 113
APPENDIX D
AREA RATING CONSIDERATION
Appendix D: Area-Specific Development Charges | 114
AREA RATING CONSIDERATION
This appendix provides the detailed analysis undertaken to establish the possible area-
specific development charge rates for the Water and Wastewater Services
Four area-specific engineered services are included:
Appendix D.1 Milverton Water Services
Appendix D.2 Milverton Wastewater Services
Appendix D.3 Shakespeare Water Services
Appendix D.4 Shakespeare Wastewater Services
The projects identified in the capital program are required to service the demands of the
anticipated development in the urban area to occur over the planning period of 2021 to
2046.
The following tables provide details of the projects included in the potential area-specific
engineered infrastructure development charge calculations for the Township's urban area.
The content of the tables is as follows:
Table 1: Development Related Capital Program
Table 2: Residential & Non-Residential Cash Flow Analysis
ALLOCATION OF CAPITAL COSTS AND CALCULATED ASDC RATES
The projects and costs have been identified and allocated through discussions with
Township staff. All costs are represented in current (2021) dollars.
The following table summarizes the allocation of the urban area engineered services capital
costs:
Appendix D: Area-Specific Development Charges | 115
The following tables summarize the calculated rates for each of the service areas in
Milverton and Shakespeare. These ADDC rate are illustrated for council consideration in
addition to the municipal-wide DCs calculated and shown in the other appendices of this
background study. Also of importance, the service areas related to fire, library, parks and
recreation, development-related studies and services related to a highway are
recommended to be levied municipal-wide under both council options and only the water
and wastewater infrastructure is differentiated between ASDC and municipal-wide.
Unadjusted
Adjusted Charge
Charge Per
Per Capita
Single & Semi
SERVICE
Capita
After Cashflow
Detached
FIRE SERVICES
$429
$429
$1,257
$858
$643
LIBRARY SERVICES
$51
$50
$148
$101
$76
PARKS & RECREATION
$722
$713
$2,090
$1,426
$1,070
DEVELOPMENT-RELATED STUDIES
$141
$142
$416
$283
$213
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
$207
$260
$763
$520
$390
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
$448
$595
$1,746
$1,191
$893
SUB-TOTAL MUNICIPAL-WIDE CHARGE (RURAL)
$1,997
$2,190
$6,420
$4,379
$3,285
WATER SERVICES
$144
$171
$500
$341
$256
WASTEWATER SERVICES
$805
$1,030
$3,020
$2,060
$1,545
TOTAL DEVELOPMENT CHARGE (URBAN SERVICES)
$948
$1,201
$3,520
$2,401
$1,801
TOTAL MILVERTON CHARGE
$2,945
$3,390
$9,940
$6,780
$5,086
1: Person per unit:
2.93
2.00
1.50
Multiples
Apartments
TOWNSHIP OF PERTH EAST
RESIDENTIAL DEVELOPMENT CHARGE
MILVERTON DEVELOPMENT CHARGE
Charge Per Unit Type (1)
Service
Gross
Cost
Grants /
Subsidies /
Other
Replacement
/ Benefit to
Existing
Other
Development
-Related
2021-2046
DC Share
Allocation
Residential
(53%)
Non-
Residential
(47%)
Milverton Water
Services
$480,851
$52,340
$262,500
$0
$166,011
$87,986
$78,025
Milverton
Wastewater
Services
$974,468
$43,617
$0
$0
$930,851
$493,351
$437,500
Shakespeare
Water Services
$19,149
$7,660
$0
$0
$11,489
$6,089
$5,400
Shakespeare
Wastewater
Services
$25,532
$6,383
$0
$0
$19,149
$10,149
$9,000
Total
$1,500,000
$110,000
$262,500
$0
$1,127,500
$597,575
$529,925
Appendix D: Area-Specific Development Charges | 116
TOWNSHIP OF PERTH EAST
NON-RESIDENTIAL DEVELOPMENT CHARGE
MILVERTON DEVELOPMENT CHARGE
Unadjusted
Adjusted
Charge
Charge
SERVICE
($/sq.m.)
($/sq.m.)
FIRE SERVICES
$7.07
$7.13
LIBRARY SERVICES
$0.00
$0.00
PARKS & RECREATION
$0.00
$0.00
DEVELOPMENT-RELATED STUDIES
$2.33
$2.36
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
$3.43
$4.18
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
$7.43
$9.56
SUB-TOTAL MUNICIPAL-WIDE CHARGE (RURAL)
$20.26
$23.23
WATER SERVICES
$2.38
$2.74
WASTEWATER SERVICES
$13.36
$16.52
TOTAL DEVELOPMENT CHARGE (URBAN SERVICES)
$15.74
$19.26
TOTAL MILVERTON CHARGE PER SQ.M
$36.00
$42.49
Unadjusted
Adjusted Charge
Charge Per
Per Capita
Single & Semi
SERVICE
Capita
After Cashflow
Detached
FIRE SERVICES
$429
$429
$1,257
$858
$643
LIBRARY SERVICES
$51
$50
$148
$101
$76
PARKS & RECREATION
$722
$713
$2,090
$1,426
$1,070
DEVELOPMENT-RELATED STUDIES
$141
$142
$416
$283
$213
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
$207
$260
$763
$520
$390
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
$448
$595
$1,746
$1,191
$893
SUB-TOTAL MUNICIPAL-WIDE CHARGE (RURAL)
$1,997
$2,190
$6,420
$4,379
$3,285
WATER SERVICES
$68
$76
$224
$153
$115
WASTEWATER SERVICES
$113
$110
$322
$219
$165
TOTAL DEVELOPMENT CHARGE (URBAN SERVICES)
$181
$186
$546
$372
$280
TOTAL SHAKESPEARE CHARGE
$2,178
$2,376
$6,966
$4,751
$3,565
1: Person per unit:
2.93
2.00
1.50
Charge Per Unit Type (1)
Multiples
Apartments
TOWNSHIP OF PERTH EAST
RESIDENTIAL DEVELOPMENT CHARGE
SHAKESPEARE DEVELOPMENT CHARGE
Appendix D: Area-Specific Development Charges | 117
TOWNSHIP OF PERTH EAST
NON-RESIDENTIAL DEVELOPMENT CHARGE
Unadjusted
Adjusted
Charge
Charge
SERVICE
($/sq.m.)
($/sq.m.)
FIRE SERVICES
$7.07
$7.13
LIBRARY SERVICES
$0.00
$0.00
PARKS & RECREATION
$0.00
$0.00
DEVELOPMENT-RELATED STUDIES
$2.33
$2.36
SERVICES RELATED TO A HIGHWAY: PUBLIC WORKS
$3.43
$4.18
SERVICES RELATED TO A HIGHWAY: ROADS & RELATED
$7.43
$9.56
SUB-TOTAL MUNICIPAL-WIDE CHARGE (RURAL)
$20.26
$23.23
WATER SERVICES
$1.13
$1.23
WASTEWATER SERVICES
$1.88
$1.79
TOTAL DEVELOPMENT CHARGE (URBAN SERVICES)
$3.01
$3.02
TOTAL SHAKESPEARE CHARGE PER SQ.M
$23.27
$26.25
SHAKESPEARE DEVELOPMENT CHARGE
Appendix D: Area-Specific Development Charges | 118
APPENDIX D.1
MILVERTON WATER SERVICES
Appendix D: Area-Specific Development Charges | 119
MILVERTON WATER SERVICES
The following section sets out the 2021-2046 development-related capital forecast and
calculation of the area-specific development charge for Water Services in the Milverton
area.
The details and timing of the 2021-2046 development-related Water capital program are
shown in Table 1. The gross costs included in the program total $480,851, which includes a
new well, Master Plan and vehicle. Of this total, $52,340 and $262,500 have been identified
in grants/subsidies/other contributions and benefit to the existing community respectively.
As such, these costs have been excluded from the development charge calculation. Please
note, the cost of the Pick-up Truck and Master Plan Study have been proportionately
allocated between the Milverton and Shakespeare service areas.
The remaining $166,011 is identified as the net development-related share eligible for
funding through development charges over the planning period from 2021 to 2046.
Table 1 summarizes the capital program and calculation of the unadjusted residential and
non-residential development charges for water servicing. The DC eligible share of $166,011
has been allocated 53 per cent to new residential development and 47 per cent to non-
residential development based on shares of population in new units and employment
growth in new space within the Milverton area to 2046.
The residential share of the capital program totals $87,986 and, when divided by the
forecast growth in population in new units (613), results in an unadjusted charge of $143.51
per capita.
The non-residential share, approximately $78,025, is applied against the forecast increase
in square metres of non-residential floor space (32,753). This results in an unadjusted
charge of $2.38 per square metre.
The residential and non-residential cash flow analysis is shown in Table 2. After cash flow
considerations, the residential and non-residential charge increase to $171 per capita $2.74
per square metre, respectively.
Appendix D: Area-Specific Development Charges | 120
2021-2046
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$480,851
$166,011
$144
$2.38
$171
$2.74
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Development Charge
MILVERTON WATER SERVICES SUMMARY
Appendix D: Area-Specific Development Charges | 121
Gross
Grants/
Net
Ineligible Cost
Total
DC Eligible Costs
Service
Timing
Project
Subsidies/Other
Municipal
Replacement
DC Eligible
Available DC
2021-
Post
Cost
Recoveries
Cost
& BTE Share
Costs
Reserves
2046
2046
1.0
WATER SERVICES
1.1 WATER SERVICES
1.1.1 Milverton Well
2024
350,000
$
-
$
350,000
$
262,500
$
87,500
$
-
$
87,500
$
-
$
1.1.2 Master Plan
various
87,234
$
43,617
$
43,617
$
-
$
43,617
$
-
$
43,617
$
-
$
1.1.3 Pickup Truck
2021
43,617
$
8,723
$
34,894
$
-
$
34,894
$
-
$
34,894
$
-
$
480,851
$
52,340
$
428,511
$
262,500
$
166,011
$
-
$
166,011
$
-
$
TOTAL WATER SERVICES
480,851
$
52,340
$
428,511
$
262,500
$
166,011
$
-
$
166,011
$
-
$
Residential Development Charge Calculation
Residential Share of 2021-2046 DC Eligible Costs
53%
$87,986
Reserve Fund Balance
$0
Growth in Population in New Units
613
Unadjusted Development Charge Per Capita ($)
$143.51
Non-Residential Development Charge Calculation
Non-Residential Share of 2021-2046 DC Eligible Costs
47%
78,025
$
Growth in Square Meters
32,753
Unadjusted Development Charge Per Sq.M ($)
$2.38
TOWNSHIP OF PERTH EAST
APPENDIX D.1
TABLE 1
DEVELOPMENT-RELATED CAPITAL PROGRAM
ASDC - SENSITIVITY TEST
WATER SERVICES
Appendix D: Area-Specific Development Charges | 122
WATER SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
0.0
(5.9)
(1.3)
3.8
(41.3)
(38.2)
(34.8)
(34.3)
(33.7)
(33.0)
(32.1)
(31.2)
(30.9)
(30.6)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Water Services : Non Inflated
$19.38
$0.89
$0.89
$47.26
$0.89
$0.89
$0.89
$0.89
$0.89
$0.89
$0.89
$0.89
$0.89
$0.89
Water Services : Inflated
$19.38
$0.91
$0.93
$50.16
$0.96
$0.98
$1.00
$1.02
$1.04
$1.06
$1.08
$1.11
$1.13
$1.15
POPULATION GROWTH
- Population in New Units
80
33
34
34
34
34
17
18
18
18
18
14
14
15
REVENUE - current ($000)
- Dev. Charge Receipts
13.6
5.8
6.0
6.1
6.3
6.4
3.4
3.5
3.6
3.7
3.8
3.0
3.1
3.2
- Interest on Opening Balance
0.0
(0.3)
(0.1)
0.1
(2.3)
(2.1)
(1.9)
(1.9)
(1.9)
(1.8)
(1.8)
(1.7)
(1.7)
(1.7)
- Interest on In-year Transactions (excl.int.)
(0.2)
0.1
0.1
(1.2)
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
TOTAL REVENUE
13.4
5.6
6.0
5.0
4.1
4.4
1.5
1.6
1.8
1.9
2.1
1.4
1.5
1.6
CLOSING CASH BALANCE
(5.9)
(1.3)
3.8
(41.3)
(38.2)
(34.8)
(34.3)
(33.7)
(33.0)
(32.1)
(31.2)
(30.9)
(30.6)
(30.2)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
(30.2)
(29.7)
(29.1)
(27.6)
(25.9)
(24.0)
(21.8)
(19.5)
(16.4)
(12.9)
(9.0)
(4.7)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Water Services : Non Inflated
$0.89
$0.89
$0.89
$0.89
$0.89
$0.89
$0.89
$0.89
$0.89
$0.89
$0.89
$0.89
$87.99
Water Services : Inflated
$1.17
$1.20
$1.22
$1.24
$1.27
$1.30
$1.32
$1.35
$1.37
$1.40
$1.43
$1.46
$97.64
POPULATION GROWTH
- Population in New Units
15
15
18
18
19
19
19
21
21
22
22
23
613
REVENUE - current ($000)
- Dev. Charge Receipts
3.3
3.4
4.3
4.4
4.5
4.7
4.8
5.5
5.7
5.9
6.1
6.4
$130.33
- Interest on Opening Balance
(1.7)
(1.6)
(1.6)
(1.5)
(1.4)
(1.3)
(1.2)
(1.1)
(0.9)
(0.7)
(0.5)
(0.3)
($32.75)
- Interest on In-year Transactions (excl.int.)
0.0
0.0
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
$0.07
TOTAL REVENUE
1.7
1.8
2.7
2.9
3.2
3.4
3.7
4.5
4.8
5.3
5.7
6.2
$97.64
CLOSING CASH BALANCE
(29.7)
(29.1)
(27.6)
(25.9)
(24.0)
(21.8)
(19.5)
(16.4)
(12.9)
(9.0)
(4.7)
0.0
2021 Adjusted Charge Per Capita
$171
Allocation of Capital Program
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WATER SERVICES
RESIDENTIAL DEVELOPMENT CHARGE
APPENDIX D.1
TABLE 2 - PAGE 1
TOWNSHIP OF PERTH EAST
Appendix D: Area-Specific Development Charges | 123
WATER SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
$0.00
($9.95)
($4.46)
$1.46
($36.84)
($32.17)
($27.10)
($26.10)
($24.99)
($23.76)
($22.42)
($20.96)
($20.04)
($19.03)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Water Services : Non Inflated
$17.19
$0.79
$0.79
$41.91
$0.79
$0.79
$0.79
$0.79
$0.79
$0.79
$0.79
$0.79
$0.79
$0.79
Water Services : Inflated
$17.19
$0.80
$0.82
$44.48
$0.85
$0.87
$0.89
$0.91
$0.92
$0.94
$0.96
$0.98
$1.00
$1.02
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
2,741
2,411
2,411
2,460
2,509
2,509
1,082
1,082
1,082
1,082
1,082
886
886
886
REVENUE - current ($000)
- Dev. Charge Receipts
$7.5
$6.7
$6.9
$7.2
$7.4
$7.6
$3.3
$3.4
$3.5
$3.5
$3.6
$3.0
$3.1
$3.1
- Interest on Opening Balance
0.0
(0.5)
(0.2)
0.1
(2.0)
(1.8)
(1.5)
(1.4)
(1.4)
(1.3)
(1.2)
(1.2)
(1.1)
(1.0)
- Interest on In-year Transactions (excl.int.)
(0.3)
0.1
0.1
(1.0)
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
TOTAL REVENUE
7.2
6.3
6.7
6.2
5.5
5.9
1.9
2.0
2.1
2.3
2.4
1.9
2.0
2.1
CLOSING CASH BALANCE
(9.9)
(4.5)
1.5
(36.8)
(32.2)
(27.1)
(26.1)
(25.0)
(23.8)
(22.4)
(21.0)
(20.0)
(19.0)
(17.9)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
($17.92)
($16.70)
($15.38)
($14.69)
($13.93)
($13.10)
($12.19)
($11.20)
($9.29)
($7.23)
($5.00)
($2.59)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Water Services : Non Inflated
$0.79
$0.79
$0.79
$0.79
$0.79
$0.79
$0.79
$0.79
$0.79
$0.79
$0.79
$0.79
$78.02
Water Services : Inflated
$1.04
$1.06
$1.08
$1.10
$1.13
$1.15
$1.17
$1.20
$1.22
$1.24
$1.27
$1.29
$86.59
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
886
886
689
689
689
689
689
886
886
886
886
886
32,753
REVENUE - current ($000)
- Dev. Charge Receipts
$3.2
$3.3
$2.6
$2.6
$2.7
$2.7
$2.8
$3.7
$3.8
$3.8
$3.9
$4.0
$109.00
- Interest on Opening Balance
(1.0)
(0.9)
(0.8)
(0.8)
(0.8)
(0.7)
(0.7)
(0.6)
(0.5)
(0.4)
(0.3)
(0.1)
($22.34)
- Interest on In-year Transactions (excl.int.)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
($0.08)
TOTAL REVENUE
2.3
2.4
1.8
1.9
2.0
2.1
2.2
3.1
3.3
3.5
3.7
3.9
$86.59
CLOSING CASH BALANCE
(16.7)
(15.4)
(14.7)
(13.9)
(13.1)
(12.2)
(11.2)
(9.3)
(7.2)
(5.0)
(2.6)
0.0
Allocation of Capital Program
2021 Adjusted Charge Per Square Metre
$2.74
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate:
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
TABLE 2 - PAGE 2
TOWNSHIP OF PERTH EAST
WATER SERVICES
NON-RESIDENTIAL DEVELOPMENT CHARGE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
APPENDIX D.1
Appendix D: Area-Specific Development Charges | 124
APPENDIX D.2
MILVERTON WASTEWATER SERVICES
Appendix D: Area-Specific Development Charges | 125
MILVERTON WASTEWATER SERVICES
The capital program for Wastewater Services was assembled by the Township's
engineering staff and is designed to serve the anticipated population and employment
growth in Milverton between 2021 and 2046.
Table 1 summarizes the capital program and calculation of the unadjusted residential and
non-residential development charges. The 2021-2046 Wastewater capital program totals
$974,468 and includes infrastructure planned to serve development in the Milverton area.
The development-related costs included in the capital program are not to be entirely
recovered through DCs. $43,617 has been identified in grants and other contributions and
have therefore been excluded from the development charges calculation. This share
represents the shared funding source for the study between water and wastewater
services.
The remaining $930,851 is identified as the net development-related share eligible for
funding through development charges over the 2021-2046 planning period.
The DC eligible share has been allocated 53 per cent to new residential development and
47 per cent to non-residential development based on shares of population in new units and
employment growth in new space to 2046. The residential share of the capital program
totals $493,351 and, when divided by the forecast growth in population in new units (613),
an unadjusted charge of $804.69 per capita results.
The non-residential share, $437,500 is applied against the forecast increase in square
metres of non-residential floor space (32,753), yielding an unadjusted charge of $13.36 per
square metre.
The residential and non-residential cash flow analysis is shown on Table 2. The analysis
takes into consideration expenditure timing and DC revenue projections. After cash flow
considerations, the residential and non-residential charges increase to $1,030 per capita
and $16.52 per square metre, respectively.
Appendix D: Area-Specific Development Charges | 126
2021-2046
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$974,468
$930,851
$805
$13.36
$1,030
$16.52
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Development Charge
MILVERTON WASTEWATER SERVICES SUMMARY
Appendix D: Area-Specific Development Charges | 127
Gross
Grants/
Net
Ineligible Cost
Total
DC Eligible Costs
Service
Timing
Project
Subsidies/Other
Municipal
Replacement
DC Eligible
Available DC
2021-
Post
Cost
Recoveries
Cost
& BTE Share
Costs
Reserves
2046
2046
2.0
WASTEWATER SERVICES
2.1 WASTEWATER SERVICES
2.1.1 Millstreet Sewage Pumping Station
2022
800,000
$
-
$
800,000
$
-
$
800,000
$
-
$
800,000
$
-
$
2.1.2 Master Plan
various
87,234
$
43,617
$
43,617
$
-
$
43,617
$
-
$
43,617
$
-
$
2.1.3 Inflow & Infiltration System
various
87,234
$
-
$
87,234
$
-
$
87,234
$
-
$
87,234
$
-
$
974,468
$
43,617
$
930,851
$
-
$
930,851
$
-
$
930,851
$
-
$
TOTAL WASTEWATER SERVICES
974,468
$
43,617
$
930,851
$
-
$
930,851
$
-
$
930,851
$
-
$
Residential Development Charge Calculation
Residential Share of 2021-2046 DC Eligible Costs
53%
$493,351
Reserve Fund Balance
$0
Growth in Population in New Units
613
Unadjusted Development Charge Per Capita ($)
$804.69
Non-Residential Development Charge Calculation
Non-Residential Share of 2021-2046 DC Eligible Costs
47%
437,500
$
Growth in Square Meters
32,753
Unadjusted Development Charge Per Sq.M ($)
$13.36
WASTEWATER SERVICES
APPENDIX D.2
TABLE 1
TOWNSHIP OF PERTH EAST
DEVELOPMENT-RELATED CAPITAL PROGRAM
Appendix D: Area-Specific Development Charges | 128
WASTEWATER SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
0.0
80.9
(327.5)
(311.7)
(294.2)
(274.7)
(253.3)
(249.6)
(245.2)
(240.0)
(233.9)
(226.9)
(224.1)
(220.7)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Wastewater Services : Non Inflated
$2.67
$426.67
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
Wastewater Services : Inflated
$2.67
$435.20
$2.78
$2.83
$2.89
$2.94
$3.00
$3.06
$3.13
$3.19
$3.25
$3.32
$3.38
$3.45
POPULATION GROWTH
- Population in New Units
80
33
34
34
34
34
17
18
18
18
18
14
14
15
REVENUE - current ($000)
- Dev. Charge Receipts
82.1
35.1
36.0
36.9
37.9
38.9
20.3
20.9
21.5
22.1
22.8
18.4
18.9
19.4
- Interest on Opening Balance
0.0
2.8
(18.0)
(17.1)
(16.2)
(15.1)
(13.9)
(13.7)
(13.5)
(13.2)
(12.9)
(12.5)
(12.3)
(12.1)
- Interest on In-year Transactions (excl.int.)
1.4
(11.0)
0.6
0.6
0.6
0.6
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
TOTAL REVENUE
83.5
26.9
18.5
20.4
22.3
24.4
6.6
7.5
8.3
9.3
10.3
6.1
6.8
7.5
CLOSING CASH BALANCE
80.9
(327.5)
(311.7)
(294.2)
(274.7)
(253.3)
(249.6)
(245.2)
(240.0)
(233.9)
(226.9)
(224.1)
(220.7)
(216.6)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
(216.6)
(211.9)
(206.4)
(195.3)
(182.8)
(168.9)
(153.3)
(136.0)
(114.0)
(89.7)
(62.7)
(32.9)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Wastewater Services : Non Inflated
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
$2.67
$493.35
Wastewater Services : Inflated
$3.52
$3.59
$3.66
$3.73
$3.81
$3.89
$3.96
$4.04
$4.12
$4.21
$4.29
$4.38
$522.29
POPULATION GROWTH
- Population in New Units
15
15
18
18
19
19
19
21
21
22
22
23
613
REVENUE - current ($000)
- Dev. Charge Receipts
19.9
20.4
25.7
26.5
27.4
28.3
29.3
33.0
34.2
35.6
37.0
38.5
$786.81
- Interest on Opening Balance
(11.9)
(11.7)
(11.3)
(10.7)
(10.1)
(9.3)
(8.4)
(7.5)
(6.3)
(4.9)
(3.4)
(1.8)
($265.14)
- Interest on In-year Transactions (excl.int.)
0.3
0.3
0.4
0.4
0.4
0.4
0.4
0.5
0.5
0.5
0.6
0.6
$0.63
TOTAL REVENUE
8.3
9.1
14.7
16.2
17.8
19.5
21.3
26.0
28.5
31.2
34.1
37.2
$522.29
CLOSING CASH BALANCE
(211.9)
(206.4)
(195.3)
(182.8)
(168.9)
(153.3)
(136.0)
(114.0)
(89.7)
(62.7)
(32.9)
(0.0)
2021 Adjusted Charge Per Capita
$1,030
Allocation of Capital Program
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
RESIDENTIAL DEVELOPMENT CHARGE
APPENDIX D.2
TABLE 2 - PAGE 1
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WASTEWATER SERVICES
Appendix D: Area-Specific Development Charges | 129
WASTEWATER SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
$0.00
$43.65
($309.63)
($287.01)
($261.48)
($232.82)
($201.73)
($195.05)
($187.64)
($179.47)
($170.48)
($160.61)
($153.94)
($146.58)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Wastewater Services : Non Inflated
$2.37
$378.37
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
Wastewater Services : Inflated
$2.37
$385.93
$2.46
$2.51
$2.56
$2.61
$2.66
$2.72
$2.77
$2.83
$2.88
$2.94
$3.00
$3.06
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
2,741
2,411
2,411
2,460
2,509
2,509
1,082
1,082
1,082
1,082
1,082
886
886
886
REVENUE - current ($000)
- Dev. Charge Receipts
$45.3
$40.6
$41.4
$43.1
$44.9
$45.8
$20.1
$20.5
$20.9
$21.4
$21.8
$18.2
$18.6
$18.9
- Interest on Opening Balance
0.0
1.5
(17.0)
(15.8)
(14.4)
(12.8)
(11.1)
(10.7)
(10.3)
(9.9)
(9.4)
(8.8)
(8.5)
(8.1)
- Interest on In-year Transactions (excl.int.)
0.8
(9.5)
0.7
0.7
0.7
0.8
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
TOTAL REVENUE
46.0
32.6
25.1
28.0
31.2
33.7
9.3
10.1
10.9
11.8
12.7
9.6
10.4
11.1
CLOSING CASH BALANCE
43.7
(309.6)
(287.0)
(261.5)
(232.8)
(201.7)
(195.0)
(187.6)
(179.5)
(170.5)
(160.6)
(153.9)
(146.6)
(138.5)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
($138.50)
($129.66)
($120.00)
($114.01)
($107.44)
($100.25)
($92.41)
($83.87)
($69.57)
($54.11)
($37.41)
($19.40)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Wastewater Services : Non Inflated
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
$2.37
$437.50
Wastewater Services : Inflated
$3.12
$3.18
$3.25
$3.31
$3.38
$3.45
$3.51
$3.59
$3.66
$3.73
$3.80
$3.88
$463.16
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
886
886
689
689
689
689
689
886
886
886
886
886
32,753
REVENUE - current ($000)
- Dev. Charge Receipts
$19.3
$19.7
$15.6
$15.9
$16.2
$16.6
$16.9
$22.2
$22.6
$23.1
$23.5
$24.0
$657.12
- Interest on Opening Balance
(7.6)
(7.1)
(6.6)
(6.3)
(5.9)
(5.5)
(5.1)
(4.6)
(3.8)
(3.0)
(2.1)
(1.1)
($193.89)
- Interest on In-year Transactions (excl.int.)
0.3
0.3
0.2
0.2
0.2
0.2
0.2
0.3
0.3
0.3
0.3
0.4
($0.06)
TOTAL REVENUE
12.0
12.8
9.2
9.9
10.6
11.3
12.1
17.9
19.1
20.4
21.8
23.3
$463.16
CLOSING CASH BALANCE
(129.7)
(120.0)
(114.0)
(107.4)
(100.3)
(92.4)
(83.9)
(69.6)
(54.1)
(37.4)
(19.4)
0.0
Allocation of Capital Program
2021 Adjusted Charge Per Square Metre
$16.52
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate:
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WASTEWATER SERVICES
NON-RESIDENTIAL DEVELOPMENT CHARGE
APPENDIX D.2
TABLE 2 - PAGE 2
TOWNSHIP OF PERTH EAST
Appendix D: Area-Specific Development Charges | 130
APPENDIX D.3
SHAKESPEARE WATER SERVICES
Appendix D: Area-Specific Development Charges | 131
SHAKESPEARE WATER SERVICES
The following section sets out the 2021-2046 development-related capital forecast and
calculation of the area-specific development charge for Water Services in the Shakespeare
area.
The details and timing of the 2021-2046 development-related Water capital program are
shown in Table 1. The gross costs included in the program total $19,149 which includes a
Master Plan and new vehicle. Of this total, $7,660 is being funded from other DCs. The
remaining $11,489 is identified as the net development-related share eligible for funding
through development charges over the planning period from 2021 to 2046.
The DC eligible share of $11,489 has been allocated 53 per cent to new residential
development and 47 per cent to non-residential development based on shares of population
in new units and employment growth in new space within Shakespeare to 2046.
The residential share of the capital program totals $6,089 and, when divided by the forecast
growth in population in new units (90), results in an unadjusted charge of $67.87 per capita.
The non-residential share, approximately $5,400, is applied against the forecast increase in
square metres of non-residential floor space (4,793). This results in an unadjusted charge
of $1.13 per square metre.
The residential and non-residential cash flow analysis is shown in Table 2. After cash flow
considerations, the residential and non-residential charge increase to $76 per capita $1.23
per square metre, respectively.
2021-2046
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$19,149
$11,489
$68
$1.13
$76
$1.23
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Development Charge
SHAKESPEARE WATER SERVICES SUMMARY
Appendix D: Area-Specific Development Charges | 132
Gross
Grants/
Net
Ineligible Cost
Total
DC Eligible Costs
Service
Timing
Project
Subsidies/Other
Municipal
Replacement
DC Eligible
Available DC
2021-
Post
Cost
Recoveries
Cost
& BTE Share
Costs
Reserves
2046
2046
3.0
WATER SERVICES
3.1 WATER SERVICES
3.1.1 Master Plan
various
12,766
$
6,383
$
6,383
$
-
$
6,383
$
-
$
6,383
$
-
$
3.1.2 Pickup Truck
2021
6,383
$
1,277
$
5,106
$
-
$
5,106
$
-
$
5,106
$
-
$
19,149
$
7,660
$
11,489
$
-
$
11,489
$
-
$
11,489
$
-
$
TOTAL WATER SERVICES
19,149
$
7,660
$
11,489
$
-
$
11,489
$
-
$
11,489
$
-
$
Residential Development Charge Calculation
Residential Share of 2021-2046 DC Eligible Costs
53%
$6,089
Reserve Fund Balance
$0
Growth in Population in New Units
90
Unadjusted Development Charge Per Capita ($)
$67.87
Non-Residential Development Charge Calculation
Non-Residential Share of 2021-2046 DC Eligible Costs
47%
5,400
$
Growth in Square Meters
4,793
Unadjusted Development Charge Per Sq.M ($)
$1.13
WATER SERVICES
ASDC - SENSITIVITY TEST
APPENDIX D.3
TABLE 1
TOWNSHIP OF PERTH EAST
DEVELOPMENT-RELATED CAPITAL PROGRAM
Appendix D: Area-Specific Development Charges | 133
WATER SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
0.0
(2.0)
(1.9)
(1.7)
(1.5)
(1.3)
(1.1)
(1.1)
(1.1)
(1.1)
(1.0)
(1.0)
(1.0)
(1.0)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Water Services : Non Inflated
$2.84
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
Water Services : Inflated
$2.84
$0.13
$0.14
$0.14
$0.14
$0.14
$0.15
$0.15
$0.15
$0.16
$0.16
$0.16
$0.17
$0.17
POPULATION GROWTH
- Population in New Units
12
5
5
5
5
5
3
3
3
3
3
2
2
2
REVENUE - current ($000)
- Dev. Charge Receipts
0.9
0.4
0.4
0.4
0.4
0.4
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
- Interest on Opening Balance
0.0
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
- Interest on In-year Transactions (excl.int.)
(0.1)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
TOTAL REVENUE
0.8
0.3
0.3
0.3
0.3
0.4
0.2
0.2
0.2
0.2
0.2
0.1
0.1
0.2
CLOSING CASH BALANCE
(2.0)
(1.9)
(1.7)
(1.5)
(1.3)
(1.1)
(1.1)
(1.1)
(1.1)
(1.0)
(1.0)
(1.0)
(1.0)
(1.1)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
(1.1)
(1.1)
(1.1)
(1.0)
(1.0)
(0.9)
(0.9)
(0.8)
(0.7)
(0.5)
(0.4)
(0.2)
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Water Services : Non Inflated
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$0.13
$6.09
Water Services : Inflated
$0.17
$0.18
$0.18
$0.18
$0.19
$0.19
$0.19
$0.20
$0.20
$0.21
$0.21
$0.21
$7.09
POPULATION GROWTH
- Population in New Units
2
2
3
3
3
3
3
3
3
3
3
3
90
REVENUE - current ($000)
- Dev. Charge Receipts
0.2
0.2
0.3
0.3
0.3
0.3
0.3
0.4
0.4
0.4
0.4
0.4
$8.54
- Interest on Opening Balance
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
($1.46)
- Interest on In-year Transactions (excl.int.)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
$0.01
TOTAL REVENUE
0.2
0.2
0.2
0.2
0.2
0.3
0.3
0.3
0.3
0.4
0.4
0.4
$7.09
CLOSING CASH BALANCE
(1.1)
(1.1)
(1.0)
(1.0)
(0.9)
(0.9)
(0.8)
(0.7)
(0.5)
(0.4)
(0.2)
(0.0)
2021 Adjusted Charge Per Capita
$76
Allocation of Capital Program
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WATER SERVICES
RESIDENTIAL DEVELOPMENT CHARGE
APPENDIX D.3
TABLE 2 - PAGE 1
TOWNSHIP OF PERTH EAST
Appendix D: Area-Specific Development Charges | 134
WATER SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
$0.00
($2.08)
($1.86)
($1.63)
($1.37)
($1.07)
($0.75)
($0.70)
($0.65)
($0.59)
($0.53)
($0.46)
($0.43)
($0.40)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Water Services : Non Inflated
$2.52
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
Water Services : Inflated
$2.52
$0.12
$0.12
$0.12
$0.12
$0.13
$0.13
$0.13
$0.14
$0.14
$0.14
$0.14
$0.15
$0.15
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
401
353
353
360
367
367
158
158
158
158
158
130
130
130
REVENUE - current ($000)
- Dev. Charge Receipts
$0.5
$0.4
$0.5
$0.5
$0.5
$0.5
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
- Interest on Opening Balance
0.0
(0.1)
(0.1)
(0.1)
(0.1)
(0.1)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
- Interest on In-year Transactions (excl.int.)
(0.1)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
TOTAL REVENUE
0.4
0.3
0.4
0.4
0.4
0.4
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
CLOSING CASH BALANCE
(2.1)
(1.9)
(1.6)
(1.4)
(1.1)
(0.8)
(0.7)
(0.7)
(0.6)
(0.5)
(0.5)
(0.4)
(0.4)
(0.4)
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
($0.36)
($0.32)
($0.28)
($0.28)
($0.29)
($0.29)
($0.30)
($0.30)
($0.25)
($0.19)
($0.13)
($0.07)
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Water Services : Non Inflated
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$0.12
$5.40
Water Services : Inflated
$0.15
$0.16
$0.16
$0.16
$0.16
$0.17
$0.17
$0.17
$0.18
$0.18
$0.19
$0.19
$6.29
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
130
130
101
101
101
101
101
130
130
130
130
130
4,793
REVENUE - current ($000)
- Dev. Charge Receipts
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
$0.2
$0.3
$0.3
$0.3
$7.15
- Interest on Opening Balance
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
($0.86)
- Interest on In-year Transactions (excl.int.)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
($0.01)
TOTAL REVENUE
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.3
$6.29
CLOSING CASH BALANCE
(0.3)
(0.3)
(0.3)
(0.3)
(0.3)
(0.3)
(0.3)
(0.2)
(0.2)
(0.1)
(0.1)
(0.0)
Allocation of Capital Program
2021 Adjusted Charge Per Square Metre
$1.23
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate:
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
APENDIX D.3
TABLE 2 - PAGE 2
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WATER SERVICES
NON-RESIDENTIAL DEVELOPMENT CHARGE
Appendix D: Area-Specific Development Charges | 135
APPENDIX D.4
SHAKESPEARE WASTEWATER SERVICES
Appendix D: Area-Specific Development Charges | 136
SHAKESPEARE WASTEWATER SERVICES
The development-related capital program for wastewater servicing was provided by the
Township's engineering staff and totals $25,532 in capital costs. The details, timing, and
cost breakdown of these wastewater projects are shown in Table 1.
Of the total, $6,383 is being recovered from other sources and therefore been excluded from
the development charge calculation. As shown in Table 1, the development-related share
has been allocated 53 per cent, or $10,149 to new residential development and 47 per cent,
or $9,000 to new non-residential development.
The residential share is divided by the anticipated growth in population in new units
between 2021 and 2046 in the Shakespeare area (90), which yields an unadjusted
development charge of $113.12 per capita. The non-residential share ($9,000) is divided by
the 4,793 square metres in forecasted new non-residential space, resulting in an
unadjusted DC of $1.88 per square metre.
In Table 2, the residential and non-residential cash flow analysis is shown. After cash flow
analysis, the residential calculated charge decreases to $110 per capita and the adjusted
non-residential development charge decreases to $1.79 per square metre.
2021-2046
Total
Net DC Recoverable
$/capita
$/sq.m
$/capita
$/sq.m
$25,532
$19,149
$113
$1.88
$110
$1.79
Unadjusted
Adjusted
Development-Related Capital Program
Development Charge
Development Charge
SHAKESPEARE WASTEWATER SERVICES SUMMARY
Appendix D: Area-Specific Development Charges | 137
Gross
Grants/
Net
Ineligible Cost
Total
DC Eligible Costs
Service
Timing
Project
Subsidies/Other
Municipal
Replacement
DC Eligible
Available DC
2021-
Post
Cost
Recoveries
Cost
& BTE Share
Costs
Reserves
2046
2046
4.0
WASTEWATER SERVICES
4.1 WASTEWATER SERVICES
4.1.1 Master Plan
various
12,766
$
6,383
$
6,383
$
-
$
6,383
$
-
$
6,383
$
-
$
4.1.2 Inflow & Infiltration System
various
12,766
$
-
$
12,766
$
-
$
12,766
$
-
$
12,766
$
-
$
25,532
$
6,383
$
19,149
$
-
$
19,149
$
-
$
19,149
$
-
$
TOTAL WASTEWATER SERVICES
25,532
$
6,383
$
19,149
$
-
$
19,149
$
-
$
19,149
$
-
$
Residential Development Charge Calculation
Residential Share of 2021-2046 DC Eligible Costs
53%
$10,149
Reserve Fund Balance
$0
Growth in Population in New Units
90
Unadjusted Development Charge Per Capita ($)
$113.12
Non-Residential Development Charge Calculation
Non-Residential Share of 2021-2046 DC Eligible Costs
47%
9,000
$
Growth in Square Meters
4,793
Unadjusted Development Charge Per Sq.M ($)
$1.88
TOWNSHIP OF PERTH EAST
DEVELOPMENT-RELATED CAPITAL PROGRAM
WASTEWATER SERVICES
TABLE 1
APPENDIX D.4
Appendix D: Area-Specific Development Charges | 138
WASTEWATER SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
0.0
0.9
1.1
1.3
1.5
1.7
2.0
1.9
1.8
1.8
1.7
1.6
1.5
1.3
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Wastewater Services : Non Inflated
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
Wastewater Services : Inflated
$0.39
$0.40
$0.41
$0.41
$0.42
$0.43
$0.44
$0.45
$0.46
$0.47
$0.48
$0.49
$0.50
$0.50
POPULATION GROWTH
- Population in New Units
12
5
5
5
5
5
3
3
3
3
3
2
2
2
REVENUE - current ($000)
- Dev. Charge Receipts
1.3
0.5
0.6
0.6
0.6
0.6
0.3
0.3
0.3
0.3
0.4
0.3
0.3
0.3
- Interest on Opening Balance
0.0
0.0
0.0
0.0
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.0
- Interest on In-year Transactions (excl.int.)
0.0
0.0
0.0
0.0
0.0
0.0
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
TOTAL REVENUE
1.3
0.6
0.6
0.6
0.6
0.7
0.4
0.4
0.4
0.4
0.4
0.3
0.3
0.3
CLOSING CASH BALANCE
0.9
1.1
1.3
1.5
1.7
2.0
1.9
1.8
1.8
1.7
1.6
1.5
1.3
1.2
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
1.2
1.0
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.1
0.0
2021-2030 RESIDENTIAL FUNDING REQUIREMENTS
Wastewater Services : Non Inflated
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$0.39
$10.15
Wastewater Services : Inflated
$0.52
$0.53
$0.54
$0.55
$0.56
$0.57
$0.58
$0.59
$0.60
$0.62
$0.63
$0.64
$13.14
POPULATION GROWTH
- Population in New Units
2
2
3
3
3
3
3
3
3
3
3
3
90
REVENUE - current ($000)
- Dev. Charge Receipts
0.3
0.3
0.4
0.4
0.4
0.4
0.5
0.5
0.5
0.6
0.6
0.6
$12.27
- Interest on Opening Balance
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
$0.92
- Interest on In-year Transactions (excl.int.)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
($0.04)
TOTAL REVENUE
0.3
0.3
0.4
0.4
0.4
0.5
0.5
0.5
0.5
0.6
0.6
0.6
$13.14
CLOSING CASH BALANCE
1.0
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.1
0.0
(0.0)
2021 Adjusted Charge Per Capita
$110
Allocation of Capital Program
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
RESIDENTIAL DEVELOPMENT CHARGE
APPENDIX D.4
TABLE 2 - PAGE 1
TOWNSHIP OF PERTH EAST
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WASTEWATER SERVICES
Appendix D: Area-Specific Development Charges | 139
WASTEWATER SERVICES
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
OPENING CASH BALANCE ($000)
$0.00
$0.38
$0.69
$1.02
$1.38
$1.77
$2.18
$2.19
$2.19
$2.19
$2.19
$2.19
$2.12
$2.05
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Wastewater Services : Non Inflated
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
Wastewater Services : Inflated
$0.35
$0.35
$0.36
$0.37
$0.37
$0.38
$0.39
$0.40
$0.41
$0.41
$0.42
$0.43
$0.44
$0.45
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
401
353
353
360
367
367
158
158
158
158
158
130
130
130
REVENUE - current ($000)
- Dev. Charge Receipts
$0.7
$0.6
$0.7
$0.7
$0.7
$0.7
$0.3
$0.3
$0.3
$0.3
$0.3
$0.3
$0.3
$0.3
- Interest on Opening Balance
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
- Interest on In-year Transactions (excl.int.)
0.0
0.0
0.0
0.0
0.0
0.0
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
TOTAL REVENUE
0.7
0.7
0.7
0.7
0.8
0.8
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
CLOSING CASH BALANCE
0.4
0.7
1.0
1.4
1.8
2.2
2.2
2.2
2.2
2.2
2.2
2.1
2.0
2.0
OPENING CASH BALANCE FROM APPLICABLE RESERVES
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
TOTAL
OPENING CASH BALANCE ($000)
$1.97
$1.89
$1.79
$1.62
$1.44
$1.25
$1.05
$0.83
$0.68
$0.53
$0.36
$0.19
2021-2030 NON-RESIDENTIAL FUNDING REQUIREMENTS
Wastewater Services : Non Inflated
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$9.00
Wastewater Services : Inflated
$0.46
$0.47
$0.48
$0.48
$0.49
$0.50
$0.51
$0.52
$0.54
$0.55
$0.56
$0.57
$11.66
NON-RESIDENTIAL GROWTH
- Sq. Metres in New Buildings
130
130
101
101
101
101
101
130
130
130
130
130
4,793
REVENUE - current ($000)
- Dev. Charge Receipts
$0.3
$0.3
$0.2
$0.3
$0.3
$0.3
$0.3
$0.4
$0.4
$0.4
$0.4
$0.4
$10.44
- Interest on Opening Balance
0.1
0.1
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
$1.27
- Interest on In-year Transactions (excl.int.)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
(0.0)
($0.05)
TOTAL REVENUE
0.4
0.4
0.3
0.3
0.3
0.3
0.3
0.4
0.4
0.4
0.4
0.4
$11.66
CLOSING CASH BALANCE
1.9
1.8
1.6
1.4
1.3
1.0
0.8
0.7
0.5
0.4
0.2
0.0
Allocation of Capital Program
2021 Adjusted Charge Per Square Metre
$1.79
Residential Sector
53.0%
Non-Residential Sector
47.0%
Rates for 2021
Inflation Rate:
2.0%
Interest Rate on Positive Balances
3.5%
Interest Rate on Negative Balances
5.5%
WASTEWATER SERVICES
NON-RESIDENTIAL DEVELOPMENT CHARGE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
APENDIX D.4
TABLE 2 - PAGE 2
TOWNSHIP OF PERTH EAST
Appendix D: Area-Specific Development Charges | 140
APPENDIX E
COST OF GROWTH ANALYSIS
Appendix E: Cost of Growth Analysis | 141
COST OF GROWTH ANALYSIS
A.
ASSET MANAGEMENT PLAN
The DCA requires that municipalities complete an Asset Management Plan before passing a
development charges by-law. A key function of the Asset Management Plan, as required by
the legislation, is to demonstrate that all assets funded under the development charges by-
law are financially sustainable over their full life cycle.
i.
Asset Types
A summary of the future municipal-owned assets and estimated useful life assumptions for
eligible DC services considered as part of the study are outlined in Table 1 and Table 2.
Although all capital assets considered in the study have been identified, not all assets
necessitate future replacement or ongoing maintenance activities. Some projects do not
relate to the emplacement of a tangible capital asset- some examples include the
acquisition of land or the undertaking of development-related studies. These projects/costs
do not necessarily require future replacement or ongoing maintenance. Such projects are
identified as "not infrastructure" in the table.
It should be noted that the capital cost estimates prepared for each of the projects
identified in this section include grouped costs of various individual elements, which, as a
stand-alone item, may have its own useful life (ex. New buildings include: HVAC, structural
elements, roof, etc.). Accordingly, the average useful life assumptions noted below are
applicable to all project components.
TABLE 1 - SUMMARY OF MUNICIPAL ASSETS CONSIDERED
GENERAL SERVICES
Fire Services
Furniture & Equipment
Vehicles
10 years
20 years
Library Services
Collection Material Purchases
10 years
Parks & Recreation
Various infrastructure
20 years
Development-Related Studies
Development-Related Studies
Not infrastructure
Appendix E: Cost of Growth Analysis | 142
ii.
Annual Provision
When assets require rehabilitation or are due for replacement, the source of funds is limited
to reserves or contributions from operating. Capital expenditures to carry out the
rehabilitation and replacement of aging infrastructure are not growth-related and are
therefore not eligible for funding through development charge revenues or other developer
contributions.
Based on the useful life assumptions and the capital cost of acquiring and/or emplacing
each asset, a provision for infrastructure replacement has been calculated for both the
general and engineered services. Provisions for infrastructure replacement are initially
calculated for each asset based on their useful life and the anticipated cost of replacement.
The aggregate of all individual provisions form the required annual capital provision. In
calculating the annual provisions, a number of assumptions are made to account for
inflation (2.0 per cent) and interest (3.5 per cent).
Consistent with the requirements of the DCA, assets that are proposed to be funded under
the development charges by-law have been included in the analysis. As a result, the total
calculated annual provision for development charge related infrastructure has been netted
down to consider the replacement of existing infrastructure or benefit-to-existing
development. However, for reference, the annual replacement provisions associated with
the non-development charge funded costs, including costs related to the benefit-to-existing
and post-period benefit have also been calculated.
TABLE 2 - SUMMARY OF MUNICIPAL ASSETS CONSIDERED
ENGINEERED SERVICES
Services Related to a Highway: Public Works
Fleet
10-15 years
Services Related to a Highway: Roads & Related
Road/Intersection Improvements
25 years
Water Services
Well
Vehicles
50 years
10 years
Wastewater Services
Pumping Stations
Inflow & Infiltration Systems
50 years
Not infrastructure
Appendix E: Cost of Growth Analysis | 143
Tables 3 and 4 provides the calculated annual asset management contribution for both the
gross capital expenditures and the share related to the 2021-2030 DC recoverable portion
for general services and 2021-2046 for engineered services. The year 2031 has been
included for general services to calculate the annual contribution for the 2021-2030 period
as the expenditures in 2030 will not trigger asset management contributions until 2032.
Similarly, the year 2047 has been included for engineered services to calculate the annual
contributions for the 2021-2046 period.
As shown in Tables 3 and 4, by 2031, the Township will need to fund an additional $30,200
in order to properly fund the full life cycle costs of the new assets related to general
services and $74,800 for new assets related to engineered services supported under the
development charges by-law.
iii.
Future Revenue Growth
The calculated annual funding provision should be considered within the context of the
Township's projected growth. The Township is projected to increase by approximately 157
households over the next 10 years to 2030 and by 317 over the next 26 years to 2046.
2021 - 2030
Calculated AMP Annual
Capital Program
Provision by 2031
Service
DC Recoverable
Non-DC Funded*
DC Related
Non-DC Related
Fire Services
334,000
$
695,000
$
18,700
$
40,400
$
Library Services
20,000
$
-
$
1,900
$
-
$
Parks & Recreation
281,100
$
912,900
$
9,600
$
28,900
$
Development-Related Studies
110,000
$
-
$
-
$
-
$
TOTAL
745,100
$
1,607,900
$
30,200
$
69,300
$
* Includes grants, subsidies, replacement costs, and costs that will be recovered in future development charges studies (e.g. other-development related)
TABLE 3
TOWNSHIP OF PERTH EAST
CALCULATED ANNUAL PROVISION BY 2031
TABLE 4
TOWNSHIP OF PERTH EAST
CALCULATED ANNUAL PROVISION BY 2047
2021 - 2046
Calculated AMP Annual
Capital Program
Provision by 2047
Service
DC Recoverable
Non-DC Funded*
DC Related
Non-DC Related
Services Related To A Highway: Public Works
291,500
$
48,500
$
26,500
$
4,900
$
Services Related To A Highway: Roads & Related
631,800
$
1,580,800
$
26,200
$
65,700
$
Water Services
177,500
$
322,500
$
5,900
$
6,500
$
Wastewater Services
950,000
$
50,000
$
16,200
$
-
$
TOTAL
2,050,800
$
2,001,800
$
74,800
$
77,100
$
* Includes grants, subsidies, replacement costs, and costs that will be recovered in future development charges studies (e.g. other-development related)
Appendix E: Cost of Growth Analysis | 144
Additionally, the Township of Perth East will also add roughly 394 employees by 2030 which
will result in approximately 23,622 square metres of additional non-residential space and
666 new employees by 2046 which will results in approximately 39,942 square metres of
new non-residential space.
This growth will have the effect of increasing the overall assessment base and additional
user fee and charges revenues to offset the capital asset provisions required to replace the
infrastructure proposed to be funded under the development charges by-law. The collection
of these funds is intended to be allocated to the Township's reserves for the future
replacement of these assets.
B.
LONG-TERM CAPITAL AND OPERATING IMPACTS
As shown in Table 5, by 2030 and 2046, the Township's net operating costs for are
estimated to increase by $134,000 and $365,000 respectively for property tax supported
services.
Appendix E: Cost of Growth Analysis | 145
APPENDIX E
TABLE 5
TOWNSHIP OF PERTH EAST
ESTIMATED NET OPERATING COST OF THE PROPOSED
DEVELOPMENT-RELATED CAPITAL PROGRAM
Service Area
Estimated
Operating Costs
Estimated
Operating Costs
2030
2046
Fire Services
Fleet & Equipment
$0.10
per $1.00 added
$100.90
Library Services
Collection Materials
$0.15
per $1.00 added
$3.00
Parks & Recreation
Park Development
$0.05
per $1.00 added
$30.50
Services Related To A Highway: Public Works
Vehicles and Fleet
$0.70
per $1.00 added
$238.00
Services Related To A Highway: Roads & Related
Roads Construction
$400
per household
$126.65
TOTAL ESTIMATED OPERATING COSTS ($000)
$134
$365
Net Cost
(in constant $2021)
Appendix E: Cost of Growth Analysis | 146
Table 6 summarizes the components of the development-related capital forecast that will
require funding from non-DC sources (e.g. property tax or utility rates).
-
In total, $907,000 will need to be financed from non-DC sources (likely property
taxes) over the 2021-2030 period for general services;
-
Over the longer-term for engineering related tax supported services, a further $1.35
million has been identified which requires funding from non-DC sources; and
-
Lastly, over the longer-term for utility rate supported services, $262,500 has been
identified as the share required from non-dc sources.
In addition, $96,900 in interim DC financing related to post-period shares of projects may be
required. However, because DC By-laws must be revisited at least every five years, it is
difficult to determine the quantum of interim financing that may be necessary.
Council is made aware of these factors so that they understand the operating and capital
costs that will not be covered by DCs as it adopts the development-related capital forecast
set out in the study.
C.
THE PROGRAM IS DEEMED FINANCIALLY SUSTAINABLE
In summary, the asset management plan and long-term capital and operating analysis
included in this appendix demonstrates that the Township can afford to invest and operate
the identified general and engineered services infrastructure over the ten-year and long-
term planning period.
Importantly, the Township's annual budget review allows staff to continue to monitor and
implement mitigating measures should the program become less sustainable.
Appendix E: Cost of Growth Analysis | 147
Total DC
Net
Replacement
Eligible
Service
Municipal
& Benefit to
Available
Other
Costs for
Cost
Existing
DC Reserves
Dev-Related
Recovery
($000)
($000)
($000)
($000)
($000)
Fire Services
$1,009.0
$675.0
$0.0
$0.0
$334.0
Library Services
$20.0
$0.0
$0.0
$0.0
$20.0
Parks & Recreation
$610.0
$232.0
$0.0
$96.9
$281.1
Development-Related Studies
$110.0
$0.0
$0.0
$0.0
$110.0
SUBTOTAL TAX SUPPORTED SERVICES - 10 YEARS
$1,749.0
$907.0
$0.0
$96.9
$745.1
Services Related To A Highway: Public Works
$340.0
$48.5
$0.0
$0.0
$291.5
Services Related To A Highway: Roads & Related
$1,937.6
$1,305.8
$0.0
$0.0
$631.8
SUBTOTAL TAX SUPPORTED SERVICES - 26 YEARS
$2,277.6
$1,354.3
$0.0
$0.0
$923.3
Water Services
$440.0
$262.5
$0.0
$0.0
$177.5
Wastewater Services
$950.0
$0.0
$0.0
$0.0
$950.0
SUBTOTAL RATE SUPPORTED SERVICES - 26 YEARS
$1,390.0
$262.5
$0.0
$0.0
$1,127.5
TOTAL ALL SERVICES
$5,416.6
$2,523.8
$0.0
$96.9
$2,795.9
Development-Related Capital Forecast 2021-2030 & 2021-2046
APPENDIX E
TABLE 6
TOWNSHIP OF PERTH EAST
SUMMARY OF DEVELOPMENT CHARGE ELIGIBLE & INELIGIBLE COSTS
SUBTOTAL TAX SUPPORTED SERVICES - 26 YEARS
Appendix E: Cost of Growth Analysis | 148
APPENDIX F
LOCAL SERVICE POLICY
Appendix F: Local Service Policy | 149
LOCAL SERVICE POLICY
The following guidelines set out in general terms the size and nature of engineered
infrastructure that is included in the Township of Perth East 2021 Development Charges
Study. For a project to be eligible to be funded completely or in part by development
charges, the following will apply:
1.
The project will be identified in the most current Township of Perth East
Development Charges Study.
2.
If any infrastructure does not add any additional capacity over and above the
capacity requirement for that development, these projects are assumed to be the
sole responsibility of the developer.
3.
Infrastructure that provides servicing or capacity for more than one development is
not necessarily fully or partially funded from development charges. If a project is
considered fully or partially local in nature, the Township will require the benefiting
land owners to fund the works directly.
The following policy guidelines are general principles by which staff will be guided in
considering development applications. However, each application will be considered on its
own merits having regard to, among other factors, the nature, type and location of the
development in any existing development and proposed development in its surrounding
area these policy guidelines, the location and type of services required and their
relationship to the proposed development and to existing and proposed development in the
area, and subsection 59(2) of the Development Charges Act, 1997.
These local service policy guidelines are subject to review and amendment by the Township
which may be independent of an amendment or update to the Township's development
charge by-laws.
1.
Collector Roads
1.1. Collector roads internal to development - Direct developer responsibility under s.59
of the DCA (as a local service).
1.2. Roads (collector and arterial) external to development - Include in DC calculation
to the extent permitted under s.5(1) of the DCA (dependent on local
circumstances).
Appendix F: Local Service Policy | 150
1.3. Stream crossing and rail crossing road works, excluding underground utilities but
including all other works within lands to be dedicated to the Municipality or rail
corridors - Include in DC calculation to the extent permitted under s.5(1) of the
DCA (dependent on local circumstances).
2.
Traffic Signals
2.1. Traffic signalization internal to development - Direct developer responsibility under
s.59 of the DCA.
2.2. Traffic signalization external to development - Include in DC calculation to the
extent permitted under s.5(1) of the DCA.
3.
Intersection Improvements
3.1. New roads (collector and arterial) and road (collector and arterial) improvements -
Include as part of road costing noted in item 1, to limits of ROW.
3.2. Intersections improvements within specific developments and all works necessary
to connect to entrances (private and specific subdivision) to the roadway - Direct
development responsibility under s.59 of DCA (as a local service).
3.3. Intersections with County roads and provincial highways - Include in DC
calculation to the extent that they are Municipal responsibility.
3.4. Intersection improvements on other roads due to development growth increasing
traffic - Include in DC calculation.
4.
Streetlights
4.1. Streetlights on external roads - Include in area municipal DC (linked to collector
road funding source in item 1).
4.2. Streetlights within specific developments - Direct developer responsibility under
s.59 of DCA (as a local service).
5.
Sidewalks
5.1. Sidewalks on MTO and County roads - Include in area municipal DC or, in
exceptional circumstances, may be local improvement or direct developer
responsibility through local service provisions (s.59 of DCA).
Appendix F: Local Service Policy | 151
5.2. Sidewalks on area municipal roads - Linked to collector road funding source in
item 1.
5.3. Other sidewalks external to development (which are a local service within the area
to which the plan relates) - Direct developer responsibility as a local service
provision (under s.59 of DCA).
6.
Bike Routes/Bike Lanes/Bike Paths/Multi-Use Trails/Naturalized Walkways
6.1. Bike routes and bike lanes, within road allowance, external to development -
Include in DC road costs (County and area municipal), consistent with the service
standard provisions of the DCA, s.5(1).
6.2. Bike paths/multi-use trails/naturalized walkways external to development -
Include in area municipal DCs consistent with the service standard provisions of
the DCA, s.5(1).
6.3. Bike lanes, within road allowance, internal to development - Direct developer
responsibility under s.59 of the DCA (as a local service).
6.4. Bike paths/multi-use trails/naturalized walkways internal to development - Direct
developer responsibility under s.59 of the DCA (as a local service).
6.5. Trail bridges/underpasses and associated works - Include in area municipal DCs
consistent with the service standard provisions of the DCA, s.5(1).
7.
Noise Abatement Measures
7.1. Internal to Development - Direct developer responsibility through local service
provisions (s.59 of DCA).
8.
Traffic Control Systems
8.1. Include in DC calculation.
9.
Land Acquisition for Road Allowances
9.1. Land acquisition for arterial roads - Dedication under the Planning Act subdivision
provisions (s.51) through development lands; in areas with limited or no
development, include in County or area municipal DC (to the extent eligible).
Appendix F: Local Service Policy | 152
9.2. Land acquisition for collector roads - Dedication under the Planning Act
subdivision provision (s.51) through development lands (up to 27 metre right-of-
way); in areas with limited or no development, include in area municipal DC (to the
extent eligible).
9.3. Land acquisition for grade separations (beyond normal dedication requirements) -
Include in the DC to the extent eligible.
10. Land Acquisition for Easements
10.1. Easement costs external to subdivisions shall be included in DC calculation.
11. Storm Water Management
11.1. Quality and quantity works - Direct developer responsibility through local service
provisions (s.59 of DCA).
11.2. Oversizing of stormwater management works for development external to
developments will be subject to best efforts clauses by area municipality.
12. Water
12.1. Pumping stations and works associated with Zone boundaries to be included within
the DC (area municipal and County).
12.2. Watermains external to subdivisions included in the DC.
12.3. Marginal costs of waterworks within the subdivision included in DC above 250 mm
nominal diameter.
12.4. Connections to trunk mains and pumping stations to service specific area - Direct
developer responsibility.
13. Sanitary Sewer
13.1. Pumping stations shall be included in the DC.
13.2. Sanitary sewers external to subdivisions included in the DC.
13.3. Connections to trunk mains and pumping stations to service specific areas, to be
direct developer responsibility.
Appendix F: Local Service Policy | 153
13.4. Marginal costs of sanitary sewer works within the subdivision, which benefits
upstream developers, included in DC above 375 mm nominal diameter and depth of
5 metres or greater.
Appendix F: Local Service Policy | 154
APPENDIX G
DRAFT DEVELOPMENT CHARGES BY-LAW
(UNDER SEPARATE COVER)
Appendix G: Draft Development Charges By-law | 155