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Consolidated Report
Prepared by Hemson for the Township of Scugog
Development Charges
Background Study
June 27, 2024
1000 - 30 St. Patrick Street, Toronto, ON M5T 3A3
416 593 5090 | [email protected] | www.hemson.com
Contents
Executive Summary
1
A.
Purpose of Development Charges Background Study
1
B.
Development Forecast
2
C.
Calculated Development Charges
3
D.
Long-Term Capital and Operating Costs
3
E.
Asset Management Plan
3
F.
Development Charges By-Law 16-24
4
1.
Introduction
5
2.
The Methodology Uses a Township-Wide Approach
8
A.
Township-Wide Development Charges are Proposed
8
B.
Key Steps in Determining Development Charges for Future
Development-Related Projects
9
3.
Development Forecast
15
A.
Residential Forecast
15
B.
Non-Residential Forecast
16
4.
Summary of Historical Capital Service Levels
18
5.
The Development-Related Capital Forecast
20
A.
A Development-Related Capital Program is Provided for
Councilʼs Approval
20
B.
Development-Related Capital Forecast
21
6.
Proposed Development Charges
24
A.
Development Charges Calculation
24
B.
Residential and Non-Residential Development Charges
28
C.
Comparison of Newly Calculated Development Charges with
Charges Currently in Force
31
7.
Cost of Growth Analysis
34
A.
Asset Management Plan
34
B.
Long-Term Capital and Operating Costs
35
C.
The Program is Deemed to be Financially Sustainable
36
8.
Administration and Collection
37
A.
Development Charges Administration and Collection
37
B.
Consideration for Area-Rated Services
42
List of appendices
Appendix A - Development Forecast
43
Appendix B - General Services
56
Appendix B.1: Library Services
61
Appendix B.2: Fire Services
67
Appendix B.3: Parks and Recreation
74
Appendix B.4: Services Related to a Highway: Public Works
Building and Fleet
90
Appendix B.5
By-Law Enforcement and Court Services
98
Appendix B.6
Development Related Studies
104
Appendix C - Township Engineering
108
Appendix D - Reserve Funds
116
Appendix E - Cost of Growth Analysis
119
Executive Summary | 1
Executive Summary
A.
Purpose of Development Charges Background Study
i.
Legislative Context
The Township of Scugog 2024 Development Charges Background Study is
presented as part of the process to lead to the approval of a new DC by-law
in compliance with the DCA. The study is prepared in accordance with the
DCA and associated regulations, including amendments that came into force
through the More Homes, More Choice Act, the COVID-19 Economic
Recovery Act, and the More Homes Built Faster Act (Bill 23).
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, and attributing costs to development types (i.e. residential
and non-residential).
iii.
DC Eligible and Ineligible Costs
Development charges are intended to pay for the initial round of capital
costs needed to service 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 services,
parkland acquisition, etc.; deductions for costs that exceed historical service
Executive Summary | 2
level caps; and statutory exemptions for specific uses (e.g. industrial
expansions).
iv.
The 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 2024 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 Townshipʼs normal annual budget process.
B.
Development Forecast
i.
Residential and Non-Residential
The table below provides a summary of the anticipated residential and non-
residential growth over the 2024-2033 planning period. The development
forecast is further discussed in Appendix A.
Existing
2023
Forecast
As at
Estimate
Change
2033
Residential
Total Occupied Dwellings
8,388
770
9,158
- Singles & Semis
317
- Rows & Other Multiples
360
- Apartments
93
Census Population
21,898
1,784
23,682
Forecast Population in New Units
1,956
Employment*
Place of Work
8,374
604
8,978
Non-Residential Building Space (sq.m)
36,170
*Note: Excludes work at home
2024-2033
Executive Summary | 3
C.
Calculated Development Charges
The table below provides the Township-wide development charges for
residential and non-residential development based on the aforementioned
forecast.
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 as one of the provisions of the DCA.
Additional details on the long-term capital and operating impact analysis is
found in Appendix E. By 2033 the Townshipʼs net operating costs are
estimated to increase by about $2.87 million, of which $231,000 relates to
Township Engineering services while the remaining $2.64 million relates to
Townshipʼs General Services.
E.
Asset Management Plan
A key function of the Asset Management Plan is to demonstrate that all
assets proposed to be funded under the development charges by-law are
financially sustainable over their full life cycle.
By 2034, the Township will need to fund an additional $882,000 per annum
in order to properly fund the full life cycle costs of the new assets supported
under the 2024 Development Charges By-law.
Residential Charge by Unit Type
Non-Residential Charge per Sq. m
Single & Semi-
Rows &
Apartments
Industrial
Commercial
Institutional
Detached
Other Multiples
Charge Sq. m
Charge Sq. m
Charge Sq. m
General Services
$15,365
$12,458
$8,564
$21.30
$21.30
$21.30
Township Engineering
$16,077
$13,036
$8,962
$71.93
$200.72
$135.03
TOTAL DEVELOPMENT CHARGE
$31,442
$25,494
$17,526
$93.23
$222.02
$156.33
Executive Summary | 4
F.
Development Charges By-Law 16-24
The township has recently passed by-law 16-24 on April 29th, 2024, which
sets out new rates that came into force on May 28th, 2024. The by-law is
made available on the Townshipʼs website by following this link:
https://www.scugog.ca/building-development/planning-and-
development/development-charges/
Introduction | 5
1. Introduction
The Development Charges Act, 1997 (DCA) and its associated Ontario
Regulation 82/98 (O. Reg. 82/98) allow municipalities in Ontario to recover
development-related capital costs from new development and
redevelopment. The Township of Scugog Development Charges Background
Study is presented as part of a process to pass a new development charge
by-law in compliance with this legislation.
Growth forecasts for the Township of Scugog between 2024 and 2033 will
increase the demand for all Township services. The Township wishes to
continue implementing DCs to fund capital projects related to development
so that growth can continue to be serviced in a fiscally responsible manner.
When passing a DC by-law, the DCA and O. Reg. 82/98 require that a
development charges background study be prepared in which DCs are
determined with reference to:
-
A forecast of the amount, type and location of housing units, population
and non-residential development anticipated in the Township;
-
The average capital service levels provided in the Township over the
fifteen-year period immediately preceding the preparation of the
background study;
-
A review of capital works in progress and anticipated future capital
projects, including an analysis of gross expenditures, funding sources,
and net expenditures incurred or to be incurred by the Township to
provide for the expected development, including the determination of the
development and non-development-related components of the capital
projects;
-
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; and
Introduction | 6
-
An Asset Management Plan to deal with all assets whose capital costs
are proposed to be funded under the DC By-law, demonstrating that all
assets included in the capital program are financially sustainable over
their full life cycle.
The background study establishes the net capital costs attributable to
development that is forecast to occur in the Township between 2024 and
2033. These development-related net capital costs are apportioned to
residential and non-residential development in a manner that reflects the
increase in the need for each service.
The DCA provides for a period of public review and comment regarding the
proposed development charges. This process includes considering and
responding to comments received by members of the public about the
calculated charges and methodology used. Following completion of the
process, and in accordance with the DCA and Councilʼs review of the study,
it is intended that Council will pass new development charges for the
Township.
The remainder of this study sets out the information and analysis upon
which the proposed development charges are based.
Section 2 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 the background study.
Section 3 summarizes of the forecast residential and non-residential
development that is expected to occur within the Township over a planning
period from 2024 to 2033.
Section 4 summarizes the fifteen-year historical average capital service
levels that have been attained in the Township, which form the basis for the
development charges calculations.
Introduction | 7
Section 5 reviews the development-related capital program from various
Township departments.
Section 6 summarizes the calculation of applicable development charges
and the resulting calculated development charges by class and type of
development.
Section 7 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 2024 Development Charges
By-law. This section also considers the long-term operating impacts of the
projects.
Section 8 provides a review of development charges administrative matters
and consideration of area rating.
The Methodology Uses a Township-Wide Approach | 8
2. The Methodology Uses a Township-
Wide Approach
Several key steps are required in calculating any development charge.
However, specific circumstances arise in each municipality which must be
reflected in the calculation. In this study, the approach to the calculation of
proposed development charges provides a reasonable alignment of
development-related costs with the development that necessitates them.
The Township-wide approach used herein is consistent with Scugogʼs
previous Development Charges Background Studies. Despite the fact that
development charges are calculated on a Township-wide basis, legislation
allows a municipality to exempt or reduce rates for specific geographic
areas. However, legislation prevents lost revenue, due to exemptions or
reductions, from being made up through increasing charges on other areas.
A.
Township-Wide Development Charges are Proposed
Scugog provides a range of services to the community it serves and has a
sizeable inventory of facilities, land, infrastructure, vehicles and equipment.
The DCA provides the Township with flexibility when defining services that
will be included in the development charge by-laws, provided that the other
provisions of the Act and Regulations are met. The DCA also permits the
Township to designate, in its by-laws, the areas within which the
development charges shall be imposed. The charges may apply to all lands
in the Township or to other designated development areas as specified in
the by-laws.
For all of the development charge eligible services that the Township
provides, the full range of capital facilities, land, equipment and
infrastructure is available throughout the municipality. All residents
therefore have access to all facilities. A widely accepted method for sharing
The Methodology Uses a Township-Wide Approach | 9
the development-related capital costs for such services is to apportion them
over all new growth anticipated in the Township.
The following services are included in the Township-wide development
charge calculation:
-
Library Services
-
Fire Services
-
Parks and Recreation
-
Services Related to a Highway: Public Works: Buildings and Fleet
-
Bylaw Enforcement and Court Services (for Animal Services)
-
Development Related Studies
-
Township Engineering (includes: Services Related to a Highway and
Stormwater)
These services form a reasonable basis in which to plan and administer the
Township-wide development charges. Each of these services examines the
individual capital facilities and equipment that constitute it. The resulting
development charge for all of the above services would be imposed
uniformly against all new development in the Township.
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 and discussed further in
the following sections.
Figure 1 illustrates the key steps in determining Development Charges for Future Development-Related Projects.
The Methodology Uses a Township-Wide Approach | 10
The Methodology Uses a Township-Wide Approach | 11
i.
Development Forecast
The first step in the methodology requires a development forecast to be
prepared for the ten-year study period, 2024 to 2033, for all general and
engineered Township services.
For the residential portion of the forecast, the net population growth and
population growth in new units is estimated. The net population growth
determines the need for additional facilities and provides the foundation for
the development-related capital program. When calculating the development
charge, 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.
The non-residential portion of the forecast estimates the gross floor area
(GFA) of building space to be developed over the ten-year period, 2024 to
2033. The forecast of GFA is based on an employment forecast for the
Township. It is noted that not all employment growth is associated with an
increase in space. Factors for floor space per worker are used to convert the
employment forecast into GFA.
ii.
Service Categories and Historical Service Levels
The Development Charges Act provides that the increase in the need for
service attributable to anticipated development:
... must not include an increase that would result in the level of
service exceeding the average level of that service provided in the
municipality over the fifteen-year period immediately preceding the
preparation of the background study...(s. 5. (1) 4.)
Historical fifteen-year average service levels thus form the basis for
development charges. A review of the Townshipʼs capital service levels for
buildings, land, vehicles and so on, has therefore been prepared as a
The Methodology Uses a Township-Wide Approach | 12
reference for the calculation, so that 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 2009 to 2023.
iii.
Development-Related Capital Program and Analysis of Net Capital
Costs to be Included in Development Charges
A development-related capital program has been prepared by Township
staff and the consulting team as part of the 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 that the increase
in the need for service attributable to the anticipated development may
include an increase:
... only if the council of the municipality has indicated that it intends to
ensure that such an increase in need will be met. (s. 5. (1) 3.)
In conjunction with DCA, s. 5. (1) 4. referenced above, these sections have
the effect of requiring that the development charge be calculated on the
lesser of the historical fifteen-year average service levels or the service
levels embodied in future plans of the Township. The development-related
capital program prepared for this study ensures that development charges
are only imposed to help pay for projects that have been or are intended to
be purchased or built in order to accommodate future anticipated
development. It is not sufficient in the calculation of development charges
merely to have had the service in the past. There must also be a
demonstrated commitment to continue to emplace facilities or infrastructure
in the future. In this regard, 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
The Methodology Uses a Township-Wide Approach | 13
an increase in the need for service will be met if the increase in
service forms part of an official plan, capital forecast or similar
expression of the intention of the council and the plan, forecast or
similar expression of the intention of the council has been approved
by the council.
For some projects in the development-related capital program, a portion of
the project may confer benefits to existing residents. As required by the
DCA, s. 5. (1) 6., these portions of projects and their associated net costs
are the funding responsibility of the Township from non-development
charges sources. The amount of Township funding for such non-growth
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. Adjustments are made in the analysis to meet
this requirement of the Act through the use of "net" population and
employment in the determination of maximum permissible funding
envelopes. Furthermore, the Townshipʼs capital programs, and the need for
increased capacity, reflects available and useable capacity within existing
infrastructure and facilities.
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
non-residential sectors. This is done using 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. The apportionment is based on the expected demand
for, and use of, the service by each sector (e.g. shares of population and
employment).
The Methodology Uses a Township-Wide Approach | 14
The residential component of the development charge is applied to different
housing types based on average occupancy factors. The non-residential
component is applied on the basis of gross building space in square metres
for industrial, commercial and institutional development.
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
from the application of any unallocated reserve fund balances.
Development Forecast | 15
3. Development Forecast
This section provides the basis for the development forecasts used to
calculate the development charges for the Township of Scugog. A more
detailed summary of the forecasts, including tables illustrating historical
trends and forecast results is provided in Appendix A.
The development forecasts used in this Development Charges Background
Study were prepared by Hemson Consulting Ltd. in consultation with
Township planning staff and are based on a range of statistical data
including Statistics Canada Census and National Household Survey data,
Canada Mortgage Housing Corporation (CMHC) housing market information
with reference to the recently approved Durham Regional Official Plan. It is
important to note that Census population, which excludes undercoverage, is
used for development charges studies whereas total population, which
includes undercoverage, is used in official plans.
A.
Residential Forecast
Development charges are levied on residential development as a charge per
new unit. Therefore, for the residential forecast, a projection of the
population growth (or net population growth) 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 development charge, 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 Forecast | 16
Table 1 provides a summary of the residential forecast for a ten-year
planning period, from 2024 to 2033. The ten-year planning period is
applicable to all development charge services.
As shown on Table 1, the Townshipʼs Census population is forecast to
increase by approximately 1,780 over the next ten years, reaching about
23,680 people by 2033. Over the ten-year planning period from 2024 to 2033,
the number of households is forecast to increase by 770. This translates to
population growth in new units of approximately 1,960.
B.
Non-Residential Forecast
Development charges 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.
The non-residential forecast projects an increase of approximately 600 jobs
by 2033, excluding work from home employment. The net employment
growth will be accommodated in 36,170 square metres of new non-
residential building space by 2033.
A summary of the non-residential growth forecast can be found in Table 1.
Development Forecast | 17
Existing
2023
Forecast
As at
Estimate
Change
2033
Residential
Total Occupied Dwellings
8,388
770
9,158
- Singles & Semis
317
- Rows & Other Multiples
360
- Apartments
93
Census Population
21,898
1,784
23,682
Forecast Population in New Units
1,956
Employment*
Place of Work
8,374
604
8,978
Non-Residential Building Space (sq.m)
36,170
*Note: Excludes work at home
2024-2033
TABLE 1
TOWNSHIP OF SCUGOG
SUMMARY OF RESIDENTIAL & NON-RESIDENTIAL
DEVELOPMENT FORECAST
Summary of Historical Capital Service Levels | 18
4. Summary of Historical Capital Service
Levels
The DCA and Ontario Regulation 82/98 require that the development
charges be set at a level no higher than the average service level provided in
the municipality over the fifteen-year period immediately preceding the
preparation of the background study, on a service-by-service basis.
For General and Engineered Services the legislative requirement is met by
documenting historical service levels for the preceding fifteen years, in this
case, for the period from 2009 to 2023. Service levels are measured 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 growth
reflect both the quantity (number and size) and quality (value or
replacement cost) of the service provided historically by the Township. Both
the quantitative and qualitative aspects of service levels used in the present
analysis are based on information provided by Township staff based on
historical records and their experience with costs to acquire or construct
similar facilities, equipment and infrastructure.
Table 2 summarizes service levels for all applicable services included in the
development charge calculation. Appendix B and Appendix C provide the detailed
historical inventory data upon which the calculation of service levels are based.
Summary
of average histo
rical s
ervice lev
els 2009-2
023.
Summary of Historical Capital Service Levels | 19
The Development-Related Capital Forecast | 20
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 average historical service level
incorporated in the development charges calculation. 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 Program is Provided for
Councilʼs 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 program setting out those projects
that are required to service anticipated development. For all services, the
capital plan covers the ten-year period from 2024 to 2033.
One of the recommendations contained in this background study is for
Council to adopt the development-related capital program derived for the
purposes of the development charges calculation. It is assumed that future
capital budgets and forecasts will continue to bring forward the
development-related projects contained herein, that are consistent with the
development occurring in the Township. It is acknowledged that changes to
The Development-Related Capital Forecast | 21
the forecast presented here may occur through the Townshipʼs normal
capital budget process.
B.
Development-Related Capital Forecast
The capital forecast incorporates those projects identified to be related to
development anticipated in the next ten years. It is not implied that all of
these costs are to be recovered from new development by way of
development charges (see Section VI for the method and determination of
net capital costs attributable to growth). Portions of this capital forecast
may relate to providing servicing for growth which has occurred prior to 2024
(for which development charge reserve fund balances exist), for
replacement of existing capital facilities or for development anticipated to
occur beyond the 2024-2033 planning period.
A summary of the Development-Related Capital Program for all services is
presented in Table 3. The table shows that the gross cost of the Townshipʼs
capital forecast is estimated to be $120.82 million. $42.12 million in grants,
subsidies, and recoveries are anticipated in the ten-year planning period
and, thus, reduce the amount of the capital program brought forth for the
development charges consideration to $78.70 million.
Of this $78.70 million net capital cost, approximately 47 per cent, or $37.04
million is related to capital works for township engineering projects. This
capital program is comprised mainly of road works, but also includes
sidewalks and multi-use trails, storm water management, and intersection
improvement projects.
The parks and recreation capital program amounts to $25.15 million, or 32%
of the total net capital costs. It includes the construction of a new pool, an
expansion to the Blackstock Arena with new facilities, new park and trail
development, and the decommissioning and replacement of the Palmer Park
Splash Pad.
The Development-Related Capital Forecast | 22
The next highest share of net capital cost, at 13%, is attributable to Fire
Services with a total of $9.85 million. This includes a new 25,000 square foot
fire station, a new aerial platform, a new pickup truck, and provisions for
additional station and firefighter equipment. Note, the new station will result
in the decommissioning of Station #1.
The capital program for Services Related to a Highway: Public Works
amounts to $2.78 million, representing 4% of the total net capital cost over
the planning period. The program includes facility expansions for indoor
storage, new salt storage facility, and a consolidated works yard. The
program also includes additional rolling stock: a sidewalk plow/sweeper,
loader snow blower attachment and new pick-up truck.
The capital program for Library Services, totalling $1.89 million of net capital
costs includes the acquisition of additional materials and equipment, an
express library at the recreation center, and a new 8,000 square foot
Blackstock Library Complex.
The capital program for Bylaw Enforcement and Court Services includes a
new animal shelter (including the buyout of Uxbridgeʼs share of the current
facility), and the equipment for additional enforcement officers. This
program totals $1.20 million over the 10-year period from 2024-2033.
Several development-related studies have been included in the capital
program, totalling a net capital cost of approximately $810,000. This includes
an official plan review, a housing study, 2 separate 5-year zoning reviews, 2
development charge studies, and an employment lands community
improvement plan.
Further details of the capital programs for General Services can be found in
Appendix B. Details of the Engineered Services capital programs are
included in Appendix C.
The Development-Related Capital Forecast | 23
Gross
Grants/
Capital
Cost
Subsidies
Cost
Service
($000)
($000)
($000)
1.0
LIBRARY SERVICES
$3,610.0
$1,720.0
$1,890.0
1.1 Additional Materials and Equipment
$170.0
$0.0
$170.0
1.2 Land and Buildings
$3,440.0
$1,720.0
$1,720.0
2.0 FIRE SERVICES
$9,842.5
$0.0
$9,842.5
2.1 Buildings, Land & Furnishings
$7,750.0
$0.0
$7,750.0
2.2 Vehicles
$2,077.5
$0.0
$2,077.5
2.3 Equipment and Studies
$15.0
$0.0
$15.0
3.0 PARKS & RECREATION
$60,957.0
$35,811.7
$25,145.3
3.1 Indoor Recreation
$57,517.0
$35,811.7
$21,705.3
3.2 Outdoor Recreation
$3,440.0
$0.0
$3,440.0
4.0 PUBLIC WORKS: BUILDINGS & FLEET
$2,778.0
$0.0
$2,778.0
4.1 Buildings, Land & Furnishings
$2,393.0
$0.0
$2,393.0
4.2 Rolling Stock
$385.0
$0.0
$385.0
5.0 BYLAW ENFORCEMENT & COURT SERVICES
$1,196.6
$0.0
$1,196.6
6.0 DEVELOPMENT RELATED STUDIES
$836.0
$25.0
$811.0
TOTAL - 10 YEAR GENERAL SERVICES
$79,220.1
$37,556.7
$41,663.4
7.0 TOWNSHIP ENGINEERING
$41,597.9
$4,558.5
$37,039.4
TOTAL - 10 YEAR ENGINEERED SERVICES
$41,597.9
$4,558.5
$37,039.4
TOTAL - 10 YEAR ALL SERVICES
$120,818.1
$42,115.2
$78,702.8
TABLE 3
TOWNSHIP OF SCUGOG
SUMMARY OF GENERAL SERVICES DEVELOPMENT-RELATED CAPITAL FORECAST
2024-2033
Proposed Development Charges | 24
6. Proposed Development Charges
This section summarizes the calculation of development charges for each
service category and the resulting total development charge by type of
development. For all services, the calculation of the per capita (residential)
and per square metre (non-residential) charges is reviewed.
For residential development, a total per capita amount is applied to different
housing types on the basis of average occupancy factors. These housing
types are categorized as Single Residential Units, Rows and Other Multiples,
and Apartments. For non-residential development three development charge
rates are calculated - Industrial, Commercial and Institutional. The non-
residential charges are based on gross floor area (GFA) of building space.
The calculation of the development charges does not include any provision
for exemptions required under the DCA, for example, the exemption for
enlargements of up to 50 per cent on existing industrial buildings or the five
year phase-in of charges. Such legislated exemptions, or other exemptions
which Council may choose to provide, will result in a loss of development
charges revenue for the affected types of development. Any such revenue
loss may not be offset by increasing other portions of the calculated charge.
A.
Development Charges Calculation
A summary of the residential and non-residential development charges for
all Township services is presented in Table 5 and Table 6 below. Further
details of the calculation for each individual service category are available in
Appendix B (General Services) and Appendix C (Engineered Services).
i.
General Services
The capital forecast for General Services incorporates those projects related
to growth anticipated in the next ten years. The net municipal cost of the
program is $41.66 million; however, not all of the capital costs are to be
recovered from new development by way of development charges. A share
Proposed Development Charges | 25
of $7.74 million represents benefit to existing development or replacement
costs. An additional share of $3.21 million will be funded through revenues
collected from previous development charges. Of the remaining $30.71
million, $19.79 million has been deemed a benefit that is outside of the
2024-2033 planning period.
The remaining $10.92 million is carried forward to the development charges
calculation as a development-related cost. Of the total development-related
cost for general services, $10.15 million is allocated to new residential
development and $770,000 is allocated to new non-residential development.
This results in a charge of $5,190.59 per capita and $21.30 per square metre
for the provision of general services.
Further details of the calculation for each individual Township service
category are available in Appendix C.
ii.
Engineered Services
Table 5 displays the development-related capital forecast Engineered Services
in Scugog from 2024 to 2033. The net municipal cost of the capital program
amounts to $37.04 million; however, $19.39 million is deemed to be replacement
or a benefit to existing development. The Township also has $2.39 million in
available DC reserve funds to offset the cost of the program. Another $1.09
million is deemed a benefit that is outside the 2033 planning horizon. The DC
eligible costs for recovery after these deductions is $14.17 million.
The DC eligible costs are allocated at 75 per cent, or $10.62 million to
residential development, and $3.54 million to non-residential development.
The resulting charges are $5,431.52 per capita for residential development,
$71.93 per square metre for industrial developments, $200.72 per square
metre for commercial developments, and $135.03 for institutional
developments.
Further details of the calculation for Township engineered services are
available in Appendix B.
Table 4 provides r
esidential DC charge per capita and non-residential DC charge per square
metre of floor space as a
result of the 15-year capital program for
town
s
hip-wide general services.
Proposed Development Charges | 26
Table 5 provides r
esidential DC charge per capita and non-residential DC char
ge per square metre of floor space as a
result of the 15-year capital prog
ram f
or townsh
ip-wide engineered services.
Proposed Development Charges | 27
Proposed Development Charges | 28
B.
Residential and Non-Residential Development Charges
Table 6 displays the calculated development charges on a per-residential
unit type and Tables 7 to 9 display the calculated charge per-square metre
of non-residential floor space basis. It is noted that the calculated DC rates
represent the maximum permitted, fully calculated rates as per the DCA.
Implementation of the rates is subject to Council consideration. Note, the
fully calculated rates illustrated include development-related studies.
Table 6 summarizes the results of the adjustment for the residential
Township-wide development charges by service. Residential development
charges are proposed to vary by dwelling type to reflect the various
occupancy factors and resulting demand for services. As shown, the total
calculated charge of $10,662 per capita is translated into a charge by
residential unit type based on average occupancy (persons per unit) factors.
The calculated charges are $31,442 per single or semi-detached unit,
$25,494 row housing or other multiples, and $17,526 per apartment unit.
Non-residential development charges have been calculated at different
rates depending on the type of industry intended. Table 7 summarizes the
calculated charge of $93.23 per square metre for industrial development.
Table 8 shows the calculated charge of $222.02 per square metre for
commercial development. Lastly, Table 9 shows the calculated charge of
$156.33 per square metre for institutional development.
Proposed Development Charges | 29
TABLE 6
TOWNSHIP OF SCUGOG
TOWNSHIP-WIDE DEVELOPMENT CHARGES
RESIDENTIAL DEVELOPMENT CHARGES
Unadjusted
Charge By Unit Type (1)
Charge
Single & Semi-
Rows &
Apartments
SERVICE
Per Capita
Detached
Other Multiples
Library Services
$327
$969
$785
$540
Fire Services
$511
$1,513
$1,227
$843
Parks & Recreation
$3,653
$10,812
$8,767
$6,027
Services Related to a Highway: Public Works: Buildings & Fleet
$506
$1,499
$1,215
$835
Bylaw Enforcement & Court Services
$29
$86
$70
$48
Development Related Studies
$164
$486
$394
$271
General Services Charge Per Unit
$5,191
$15,365
$12,458
$8,564
Township Engineering
$5,432
$16,077
$13,036
$8,962
TOTAL DEVELOPMENT CHARGE PER UNIT
$10,622
$31,442
$25,494
$17,526
(1) Based on Persons Per Unit Of:
2.96
2.40
1.65
Unadjusted
Charge
SERVICE
($/sq.m)
Library Services
$0.00
Fire Services
$9.21
Parks & Recreation
$0.00
Services Related to a Highway: Public Works: Buildings & Fleet
$9.13
Bylaw Enforcement & Court Services
$0.00
Development Related Studies
$2.96
General Services Charge Per sq. m
$21.30
Township Engineering
$71.93
TOTAL DEVELOPMENT CHARGE PER SQ M
$93.23
INDUSTRIAL DEVELOPMENT CHARGES
TOWNSHIP-WIDE DEVELOPMENT CHARGES
TOWNSHIP OF SCUGOG
TABLE 7
Unadjusted
Charge
SERVICE
($/sq.m)
Library Services
$0.00
Fire Services
$9.21
Parks & Recreation
$0.00
Services Related to a Highway: Public Works: Buildings & Fleet
$9.13
Bylaw Enforcement & Court Services
$0.00
Development Related Studies
$2.96
General Services Charge Per sq. m
$21.30
Township Engineering
$200.72
TOTAL DEVELOPMENT CHARGE PER SQ M
$222.02
TOWNSHIP-WIDE DEVELOPMENT CHARGES
TOWNSHIP OF SCUGOG
TABLE 8
COMMERCIAL DEVELOPMENT CHARGES
Proposed Development Charges | 30
Unadjusted
Charge
SERVICE
($/sq.m)
Library Services
$0.00
Fire Services
$9.21
Parks & Recreation
$0.00
Services Related to a Highway: Public Works: Buildings & Fleet
$9.13
Bylaw Enforcement & Court Services
$0.00
Development Related Studies
$2.96
General Services Charge Per sq. m
$21.30
Township Engineering
$135.03
TOTAL DEVELOPMENT CHARGE PER SQ M
$156.33
TOWNSHIP OF SCUGOG
TABLE 9
TOWNSHIP-WIDE DEVELOPMENT CHARGES
INSTITUTIONAL DEVELOPMENT CHARGES
Proposed Development Charges | 31
C.
Comparison of Newly Calculated Development Charges
with Charges Currently in Force
Tables 10-13 present a comparison of total calculated Township-wide
development charges for a single/semi-detached housing unit, industrial,
commercial and industrial uses respectively with the Townshipʼs existing
charges (as at July 1, 2023).
Table 10 shows that the calculated charge per single/semi detached unit of
$31,442 will increase $7,839, or 33 per cent over the present development
charge of $23,603.
Table 11 shows the calculated increase in the industrial development
charge. The calculated charge of $93.23 per square metre exceeds $73.46
charge currently in force by $19.77 per square metre, or 27 per cent.
Table 12 shows the calculated increase in the commercial development
charge. The calculated charge of $222.02 per square metre represents an
increase of 59 per cent or $82.17 over the existing rate of $139.85.
As shown in Table 13, the calculated institutional development charge of
$156.33 per square metre represents an increase of 67 per cent or $62.45
from the existing rate of $93.88.
Current
Calculated
Residential
Residential
SERVICE
Charge SDU
Charge SDU
$
%
Library Services
$446
$969
$523
117%
Fire Services
$1,230
$1,513
$283
23%
Parks & Recreation
$8,529
$10,812
$2,283
27%
Services Related to a Highway: Public Works: Buildings & Fleet
$1,381
$1,499
$118
9%
Bylaw Enforcement & Court Services
$71
$86
$15
21%
Development Related Studies
$591
$486
($105)
-18%
General Services Charge Per Unit
$12,248
$15,365
$3,117
25%
Township Engineering
$11,355
$16,077
$4,722
42%
TOTAL DEVELOPMENT CHARGE PER UNIT
$23,603
$31,442
$7,839
33%
TABLE 10
TOWNSHIP OF SCUGOG
Difference in
COMPARISON OF CURRENT AND CALCULATED
RESIDENTIAL DEVELOPMENT CHARGES
Charge
Proposed Development Charges | 32
Current
Calculated
Industrial
Industrial
SERVICE
Charge Sq. m Charge Sq. m
$
%
Library Services
$0.00
$0.00
$0.00
n/a
Fire Services
$7.92
$9.21
$1.29
16%
Parks & Recreation
$0.00
$0.00
$0.00
n/a
Services Related to a Highway: Public Works: Buildings & Fleet
$8.64
$9.13
$0.49
6%
Bylaw Enforcement & Court Services
$0.00
$0.00
$0.00
n/a
Development Related Studies
$3.79
$2.96
($0.83)
-22%
General Services Charge Per sq. m
$20.35
$21.30
$0.95
5%
Township Engineering
$53.11
$71.93
$18.82
35%
TOTAL DEVELOPMENT CHARGE PER SQ M
$73.46
$93.23
$19.77
27%
Difference in
COMPARISON OF CURRENT AND CALCULATED
INDUSTRIAL DEVELOPMENT CHARGES
Charge
TABLE 11
TOWNSHIP OF SCUGOG
Current
Calculated
Commercial
Commercial
SERVICE
Charge Sq. m Charge Sq. m
$
%
Library Services
$0.00
$0.00
$0.00
n/a
Fire Services
$7.92
$9.21
$1.29
16%
Parks & Recreation
$0.00
$0.00
$0.00
n/a
Services Related to a Highway: Public Works: Buildings & Fleet
$8.64
$9.13
$0.49
6%
Bylaw Enforcement & Court Services
$0.00
$0.00
$0.00
n/a
Development Related Studies
$3.79
$2.96
($0.83)
-22%
General Services Charge Per sq. m
$20.35
$21.30
$0.95
5%
Township Engineering
$119.50
$200.72
$81.22
68%
TOTAL DEVELOPMENT CHARGE PER SQ M
$139.85
$222.02
$82.17
59%
Difference in
TABLE 12
COMMERCIAL DEVELOPMENT CHARGES
TOWNSHIP OF SCUGOG
COMPARISON OF CURRENT AND CALCULATED
Charge
Current
Calculated
Institutional
Institutional
SERVICE
Charge Sq. m Charge Sq. m
$
%
Library Services
$0.00
$0.00
$0.00
n/a
Fire Services
$7.92
$9.21
$1.29
16%
Parks & Recreation
$0.00
$0.00
$0.00
n/a
Services Related to a Highway: Public Works: Buildings & Fleet
$8.64
$9.13
$0.49
6%
Bylaw Enforcement & Court Services
$0.00
$0.00
$0.00
n/a
Development Related Studies
$3.79
$2.96
($0.83)
-22%
General Services Charge Per sq. m
$20.35
$21.30
$0.95
5%
Township Engineering
$73.53
$135.03
$61.49
84%
TOTAL DEVELOPMENT CHARGE PER SQ M
$93.88
$156.33
$62.45
67%
TOWNSHIP OF SCUGOG
Charge
Difference in
INSTITUTIONAL DEVELOPMENT CHARGES
TABLE 13
COMPARISON OF CURRENT AND CALCULATED
Proposed Development Charges | 33
i.
Statutory Phase-in of Calculated Development Charges
As a result of Bill 185, Cutting Red Tape to Build More Homes Act,
which received Royal Assent on June 6, 2024, the DCA no longer
requires that the calculated development charge rates be phased-in
over a five year period.
Cost of Growth Analysis | 34
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(s). The examination is required as one of the provisions of the DCA.
Additional details on the cost of growth analysis, including asset
management analysis, are included in Appendix E.
A.
Asset Management Plan
Tables 14 summarizes the annual capital provisions required to replace the
capital infrastructure proposed to be funded under the development charges
by-law. This estimate is based on information obtained through discussions
with Township staff regarding useful life assumptions and the capital cost of
acquiring and/or constructing each asset.
Table 15 illustrates that, by 2034, the Township will need to fund
approximately an additional $572,000 per annum for General Services to
properly fund the full life-cycle costs of the new assets supported under the
DC by-law. Engineered services will require additional funding of $310,000 per
annum. The calculated annual funding provision should be considered within
the context of the Townshipʼs projected growth; over the next ten years (to
2033) the forecast predicts an increase of approximately 770 occupied
dwellings, which represents a 9 per cent increase over the existing base.
Additionally, about 600 net new employees occupying 36,170 square metres
of non-residential building space are anticipated in the Township over the
next ten years. 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 DC by-law.
A.
Long-Term Capital and Operating Costs
Table 15 summarizes the estimated increase in net operating costs that the
Township will experience for additions associated with the planned capital
program for General and Roads and Related Services. The Townshipʼs annual
net operating costs are estimated to increase by $2.87 million by 2033.
Calculated
annual asset manageme
nt provision re
quired for all services for by 2034
Estimated a
dditional
operating
cost of the
growth-
related capital
program in 2033.
Cost of Growth Analysis | 35
Cost of Growth Analysis | 36
Appendix E also summarizes the components of the development related
capital program that will require funding from non-development charge
sources. Of the $78.70 million net municipal cost of all services, about
$27.13 million will need to be funded from non-development charge sources
over the next ten years. This is entirely related to shares of projects related
to facility and infrastructure replacement and for non-development-related
shares of projects that provide benefit to the existing community. A further
$20.88 million relates to post-2033 shares of projects which may need to be
interim financed.
Council is made aware of these estimates 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.
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 demonstrates that the Township
can afford to invest and operate the identified general and engineered
services infrastructure over the ten-year planning period.
Importantly, the Townshipʼs annual budget review allows staff to continue to
monitor and implement mitigating measures should the program become
less sustainable.
Administration and Collection | 37
8.
Administration and Collection
This section sets out the DCA requirements in respect of DC collection and
administration.
A.
Development Charges Administration and Collection
The DCA requirements in respect of the collection of DCs, certification and
remittance, as well as reserve fund management are outlined in this section.
i.
Development Charges 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.
Administration and Collection | 38
For required installments, 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. In accordance with s.26.3 the maximum interest rate a municipality
can charge is prime plus 1 per cent.
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 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.
Administration and Collection | 39
iii.
Changes Arising From the More Homes Built Faster Act (Bill 23)
As of November 28, 2022 there are several changes to the DCA due to the
enactment and Royal Assent of Bill 23. A list of the changes that are now in
force is provided below in Table 16. Notably, Bill 185, Cutting Red Tape to
Build More Homes Act, 2024 received Royal Assent on June 6, 2024 which
modified some of the changes proposed under Bill 23, namely the removal of
the 5-year phase-in and the re-introduction of studies as an eligible capital
cost.
Table 16: Bill 23 - DCA Changes in Force as of February 20, 2024
Section
Description
Section
2(1)
Exemptions for existing rental residential buildings and a
range of residential units in existing and new houses.
Section
2(4)
Housing services are ineligible for DC funding (repeal of
paragraph 17 of s.2(4) of the DCA). Existing by-laws are
deemed to be "amended" and no development charges can
be collected for housing services from November 28, 2022
onward.
Section 4.2
Exemptions for non-profit housing development. This does
not apply with respect to a DC payable before November 28,
2022.
Section 4.3
Exemption for inclusionary zoning residential units. This
does not apply with respect to a DC payable before
November 28, 2022.
Section
5(1)
Historical service level calculation period extended from 10
years to 15 years. Does not apply to by-laws in force prior to
November 28, 2022.
Section
9(1)
Maximum life of a DC by-law extended from 5 years to 10
years. This does not apply to by-laws in-force before
November 28, 2022.
Administration and Collection | 40
Section
Description
Section
26.1
Deferral payments now apply to rental housing and
institutional development. Interest on deferral payments is
now capped at prime plus 1% in accordance with s.26.3.
Section
26.2
DCs for rental housing development are now discounted
based on the number of bedrooms proposed. Interest on DC
freeze now capped at prime plus 1% in accordance with
section 26.3.
Section
26.3
Maximum interest rates are capped at prime plus 1%. This
does not apply with respect to a DC that was payable before
November 28, 2022.
Section 35
Municipalities are now required to spend or allocate at least
60% of reserve balances each year for Water Supply,
Wastewater, and Services Related to a Highway beginning in
2023.
Section
60(1)(s.4)
Additional services for which municipalities are required to
spend or allocate at least 60% of reserve fund balances may
be prescribed through Regulations (none are proposed as of
yet).
DCA,
Section 4.1
Exemptions for affordable residential units.
Table 17 summarizes the DCA changes that will take effect at a date to be
determined. It is noted that section 60(1)(l) of the DCA allows for future
regulations to identify services for which land will be an ineligible capital
cost. No regulations have been released in this regard.
Administration and Collection | 41
Table 17: Bill 23 - DCA Changes Not Currently In Force
Section
Description
DCA,
Section 4.1
Exemptions for attainable residential units.
DCA,
Section
44(4)
Rules for front ending agreements as they relate to
affordable and attainable residential units.
DCA,
Section
60(1)(d.2)
and 9d.3)
Prescribes developments and criteria related to attainable
residential units (section 4.1).
iv.
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 Townshipʼs 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 continue to include indexing
provisions in the by-law so as to ensure that the DC rates incorporate
inflationary increases over the by-law term.
Administration and Collection | 42
B.
Consideration for Area-Rated Services
In accordance with the recent changes to s.10(2) of the DCA, a development
charge background study must give consideration for "the use of more than
one development charge by-law to reflect different needs for services in
different areas". Following consultation with Township staff, it was
determined that a municipal-wide approach continues to be most
appropriate for the nature of the works and services provided in the
Township, and as such, only a Township-wide charge has been proposed.
For all of the development charge eligible services that Scugog provides, the
full range of capital facilities, land, equipment and infrastructure is available
throughout the Township. All residents therefore have access to all facilities.
A widely accepted method for recovering the development-related capital
costs for such services is to apportion them over all new development
anticipated in the Township.
The needs for servicing are outlined as follows:
i.
General Services
-
Services such as Library, Parks & Recreation, and Bylaw Enforcement &
Court Services are open and accessible to all residents in the Township
and are driven and planned for based on Township-wide population
growth.
-
Fire Services, Services Related to a Highway: Public Works: Buildings
and Fleet, and Development-Related Studies are provided to all residents
and employees in the Township and are driven and planned for based on
Township-wide population or population and employment growth.
ii.
Township Engineering
-
All engineered services, including Roads & Related, Sidewalks, and
Stormwater Management are provided through a Township-wide network
and is planned based on Township-wide population and employment
growth.
Appendix A
Development Forecast
Appendix A | 43
Development Forecast
This appendix provides the details of the development forecast used in the
preparation of the Development Charges Background Study for the
Township of Scugog. The forecast described herein is consistent with
governing legislation and represents a best estimate of the amount and type
of development that is likely to occur in the Township from 2024 to 2033.
The results of the forecasts are presented in the following tables:
Historical Development
A-1
Historical Population, Occupied Dwellings and Employment Summary
A-2
Historical Occupied Households by Unit Type
A-3
Historical Households by Period of Construction Showing Household
Size
Forecast Development
A-4
Forecast Population, Household and Employment Growth Summary
A-5
Growth in Households by Unit Type
A-6
Forecast Population in New Household by Unit Type
A-7
Non-Residential Growth Forecast
A-8
Forecast Non-Residential Space
The forecasts were prepared by Hemson Consulting Ltd. in consultation with
Township planning staff and are based on a range of statistical data
including Statistics Canada Census and National Household Survey data,
Canada Mortgage Housing Corporation (CMHC) housing market information
with reference to the Durham Regional Official Plan targets.
It is important to note that Census population, which excludes
undercoverage, is used for development charges studies whereas total
population, which includes undercoverage, is used in official plans.
Appendix A | 44
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 development forecast must cover
both residential and non-residential development and be specific enough with
regards to quantum, type, location and timing of development to allow the
Township to prepare a reasonable development-related capital program.
The forecast is based on Census years and is translated into the time periods
required for DC purposes, generally pro-rating the Census periods to the DC
planning periods. For both general and engineered services the development
charges have been calculated using a development forecast from 2024 to 2033.
B.
Historical Development in the Township
Historical development levels included in this appendix are used to
determine the average service levels attained in the Township over the last
fifteen years (2009-2023). Population and population plus employment are
used as the basis of the of historical service level calculations. As shown in
Table 1, the number of total occupied household units in Scugog has
increased from 7,805 in 2008 to 8,388 in 2023 -- an increase of 583 units.
The Census population of the Township has increased from 21,491 in 2009
to 21,898 in 2023 -- an increase of about 2 per cent or 407 people.
Employment estimates used in the development charges study are based on
Statistics Canada place of work employment. Place of work employment
includes workers who reside in other municipalities but work in Scugog and
excludes workers who live in Scugog but work in other municipalities. Place
of work data indicates that employment in Scugog has increased from about
6,230 in 2009 to an estimated value of 8,374 in 2023 -- an increase of 2,144
workers. Note, work-at-home employment excluded from the figures as, for
development charge purposes, this type of employment is considered not to
require building floorspace for its activities.
Appendix A | 45
C.
Forecast Results
Development charges are levied on residential development as a charge per
new unit and on non-residential development as a charge per unit of gross
floor area (GFA).
i.
Residential Development Forecast
The residential development forecast is based on forecasts of population
and households. The population and household development, in part,
determines the need for additional facilities and provides the foundation for
the development-related capital program. Tables 4 and 5 summarize the
population and household forecast. The tables show that the Townshipʼs net
population (or Census population) is forecast to increase over the ten-year
forecast period by 1,784 persons, from 21,898 in 2023 to 23,682 in 2033. The
number of occupied households will increase by 770, from 8,388 in 2023 to
9,158 in 2033.
In addition to the net population forecast, a forecast of "population in new
units" that will result from the addition of new housing units has been made.
As shown in Table 6, population growth in new units is estimated by
applying persons per unit (PPUs) values to the housing unit forecast. PPU
values are 2.96 for single and semi-detached units; 2.40 for rows and other
multiples; and 1.65 for apartments - these PPU values are forecasted to
remain constant over the forecast periods. The forecasted persons in newly
constructed units are based upon the historical time series of population
growth in housing in the last ten-year Census period (2011-2021) as
released in the 2021 Census for single and semi-detached dwelling units.
Data limitations exist for Multiples and apartment units and therefore, the
PPU factors from the previous DC Study were maintained. In total, 1,956 is
the forecasted population in new dwelling units over the ten-year planning
period.
Appendix A | 46
ii.
Non-Residential Development Forecast
Non-residential development charges are calculated on a square metre of
gross floor area (GFA) basis. Therefore, as per the DCA, a forecast of non-
residential building space has been developed. As with the residential
forecast, a growth forecast from 2024 to 2033 has been used for all the
development charge eligible services in the Township.
Employment densities have been used to convert the employment forecast
into building space estimates. The following densities, by employment type,
have been utilized in this Study:
Commercial/ Retail:
40 square metres per employee
Employment Land:
90 square metres per employee
Institutional:
60 square metres per employee
The GFA forecasts are provided in Table 8. The total GFA growth is forecast
at 36,170 square metres over the ten-year period with an accompanying
employment growth of 604 employees.
Appendix A | 47
Historical Census popu
lation, occupied d
wellings and place of work employment growth over the 2006-202
1 perio
d.
Appendix A | 48
Annual housing complet
ions from Canadian
Mortgage Housing Corporation over the 2006-2021 p
lanning period
.
Appendix A | 49
Data from Statistics C
anada related to h
ousehold size by period of construction from pre-1945 to 2021.
Appendix A | 50
Summary of forecast Ce
nsus population, o
ccupied dwelling units, and place of work employment over
the 20
24-203
3 plan
ning period.
Appendix A | 51
Forecast annual growth
in occupied house
holds for singles/semis, rows, an
d apartments over t
he 2024-2033 planni
ng perio
d.
Appendix A | 52
Forecast annual popula
tion growth in occ
upied households for singles/semis, rows, and apa
rtments over the
2024-2033 planning
period.
Appendix A | 53
Forecast of net total
employment and emp
loyment growth over the 2024-20
33 planning period.
Appendix A | 54
Forecast township-wide
non-residential g
ross floor area growth over the 2024-2033 planning period.
Appendix A | 55
Appendix B
General Services Technical Appendix
Appendix B | 56
General Services Technical Appendix
The following appendix provides the detailed analysis undertaken to
establish the development charge rates for each of the general services in
the Township of Scugog. Six general services have been analysed as part of
the Development Charges study:
Appendix B.1
Library Services
Appendix B.2
Fire Services
Appendix B.3
Parks and Recreation
Appendix B.4
Services Related to a Highway: Public Works: Buildings &
Fleet
Appendix B.5
By-law Enforcement & Court Services
Appendix B.6
Development-Related Studies
Every service, with the exception of development-related studies, contains a
set of two 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 fifteen-year historical
service level. The DCA and O. Reg. 82/98 require that development charges
be set at a level no higher than the average service level provided in the
municipality over the fifteen-year period immediately preceding the
preparation of the background study, on a service-by-service basis. For the
purpose of this study, the historical inventory period has been defined as
2009 to 2023.
Appendix B | 57
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 development-
related capital facilities that are to be funded by new growth reflect not only
the quantity (number and size) but also the quality (replacement value or
cost) of service provided by the 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.
Table 1 also shows the calculation of the maximum allowable development
charge revenue that can be raised for each service. The "maximum
allowable" development charge revenue is calculated by taking the fifteen-
year historical service level (expressed as $/capita or $/population and
employment) multiplied by the forecast increase in net population (or net
population growth plus employment) over the ten-year planning period. The
resulting figure is the value of capital infrastructure that would have to be
acquired in order to maintain the average fifteen-year historical service level.
There is also a requirement in the DCA to consider "excess capacity" within
the Townshipʼs existing infrastructure that may be available to partially meet
future servicing requirements. If Council has expressed its intent before or
at the time the capacity was created to recoup the cost of providing the
capacity from new development, it is considered "committed excess
capacity" under the DCA, and the associated capital cost is eligible for
recovery.
Appendix B | 58
Table 2
Development-Related Capital Program and Calculation of
Development Charges
The DCA requires that Council express its intent to provide future capital
facilities to support future growth. Based on the development forecasts
presented in Appendix A, Hemson Consulting in collaboration with Township
staff has developed a development-related capital program which sets out
the projects required to service anticipated growth for the ten-year period
from 2024 to 2033.
To determine the share of the program that is eligible for recovery through
development charges, the project costs are reduced by any anticipated
grants and "replacement" shares for all eligible services.
A replacement share occurs when a new facility will, at least in part, replace
a facility that is demolished, redeployed or will otherwise not be available to
serve its former function. The replacement share of the capital program is
not deemed to be development-related and is therefore removed from the
development charge calculation. The capital cost for replacement will
require funding from non-development charge sources, typically property
taxes or user fees.
The capital program less any replacement or benefit to existing shares
yields the development-related costs. Although deemed development-
related, not all of the net development-related capital program may be
recoverable from development charges in the period from 2024 to 2033. For
some of the services, a portion of the capital program will service growth
that will not occur until after 2033. This portion of the capital program is
either deemed "pre-built" service capacity to be considered as committed
excess capacity to be recovered under future development, or is a service
level increase. These costs are identified under the Other Development
Related column.
Appendix B | 59
The remaining portion of the net capital program represents the
development-related cost that may be included in the development charge.
In all cases, as required, this amount is equal to or less than the maximum
allowable capital amount as calculated in Table 1. The result is the
discounted development-related net capital cost that is eligible for recovery
against development over the period from 2024 to 2033.
The section below the capital program displays the calculation of the
development charge rates. The first step when determining the development
charge rate is to allocate the development-related net capital cost between
the residential and non-residential sectors. For all general services with the
exception of Library, Parks & Recreation and By-law Enforcement & Court
Services, the development-related costs have been apportioned 75 per cent
residential and 25 per cent non-residential. This apportionment is based on
the anticipated shares of net population and employment growth over the
ten-year forecast period.
The development-related costs associated with the Library Services, Parks
& Recreation and By-law Enforcement & Court Services have been allocated
100 per cent to the residential sector since the need for these services is
generally driven by residential development.
The residential development-related net capital costs are then divided by
the forecast population growth in new units. This gives the residential
development charge per capita. The non-residential development-related
net capital costs are divided by the forecast increase in non-residential
gross floor area (GFA). This yields a charge per square metre of new non-
residential GFA.
Appendix B | 60
Appendix B.1
Library Services
Appendix B | 61
Appendix B.1: Library Services
The Scugog Public Library is responsible for the delivery of library services
in the Township of Scugog. The Public Library currently operates one library
in Port Perry and is dedicated to providing knowledge and information to the
residents of the Township.
Table B.1-1
Historical Service Levels
The total space used to provide library service in Scugog totals 16,000
square feet with a full replacement value of $6.88 million. The land
associated with this space totals 0.22 hectares with a value of $330,000.
Materials are valued at $800,000 and furniture and equipment total
approximately $366,000. Personal computer-related equipment is excluded
from the calculation as required by the DCA.
The full replacement value of the 2023 inventory of capital assets for Library
Services is $8.38 million, and the average historical service level over fifteen
years is $358.78 per capita. The historical service level multiplied by the
forecasted ten-year net population growth results in a maximum allowable
funding envelope of $640,064.
Table B.1-2
Development-Related Capital Program and Calculation
of Development Charges
The 2024-2033 development-related capital program for Library Services
includes the construction of a new Blackstock complex which includes a
library space, totalling $3.44 million. Equipment and materials for this new
"express" library space total $50,000. The capital program also includes a
provision for the acquisition of additional library materials and equipment in
the amount of $120,000 over the ten-year forecast period.
Appendix B | 62
The total gross cost of the Library Service capital program is $3.61 million. A
grant in the amount of $1.72 million is assumed and dedicated towards the
Blackstock Complex, and the resulting net municipal cost of the entire
library program is $1.89 million. The uncommitted DC reserve fund balance
of $99,200 further reduces this amount to $1.79 million. All of the additional
materials and equipment for the "express" library ($50,000), and a large
share of the Blackstock Complex ($1.1 million) is deemed to be of other
development related costs and it will be examined for recovery from other
funding sources and in future DC by-law updates.
The 2024-2033 DC costs eligible for recovery amount to $640,100 which is
allocated entirely against future residential development in the Township of
Scugog. This yields a development charge rate of $327.21 per capita.
A summary of the service area 15-year average historic service level in dollars per capita, the gross cost and net recoverable portions of the 2024-2033 growth-related capital program, and the resulting development charge per capita for residential development, or per square metre for non-residential developments.
Appendix B | 63
Table B.1-1 includ
es the inventory and 15-yea
r historical ser
vice level
calculat
ions of Lib
rary
Ser
vice
s as
sets
in
the
Town
ship
of
Scug
og f
rom
2009
-202
3
.
Appendix B | 64
Conculsion of Tabl
e B.1-1 which includes the in
ventory and 15-y
ear
hist
oric
al s
ervi
ce l
evel
cal
cula
tion
s of
Lib
rary
Ser
vice
s assets in the Tow
nship
of Scu
gog fr
om 200
9-2023
.
Appendix B | 65
Table
B.1-2
sho
ws th
e 10-year develop
ment re
lated capital progr
am
for Lib
rary Services o
ver the y
ear
s 2024-2033
.
Appendix B | 66
Appendix B.2
Fire Services
Appendix B | 67
Appendix B.2: Fire Services
The Scugog Fire Department is responsible for the protection of the lives
and property of the residents through the provision of fire protection and
emergency services across the Township. The department is composed of
full-time and volunteer fire fighters whom operate out of two fire stations in
Port Perry and Caesarea.
Table B.2-1
Historical Service Levels
Table B.2-1 displays the fifteen-year historical inventory for buildings, land,
vehicles and furniture and equipment. The Fire department currently
operates out of two stations- one in Port Perry and one in Caesarea. The
total building area of both fire stations in 2023 is 15,800 square feet. These
buildings have a total replacement value of $9.01 million.
The land associated with the two fire stations totals 0.64 hectares valued at
$660,000. The Scugog Fire Department fleet includes 13 vehicles and
related equipment with a replacement value of $3.71 million. Furniture,
equipment, and personal firefighter equipment at all stations are valued at
approximately $2.15 million.
The full replacement value of the inventory of capital assets for Fire
Services totals $15.52 million and the fifteen-year historical average service
level is $558.26 per population and employment. The historical service level,
multiplied by the ten-year forecast growth in population and employment
(2,388) results in a maximum allowable funding envelope of $1.33 million.
Table B.2-2
Development-Related Capital Program and Calculation
of Development Charges
The Fire Department is planning to expand and construct a new fire station
in 2028. The station is expected to cost $7.75 million and is intended to
Appendix B | 68
consolidate the existing Fire Station #1 operations. Therefore, approximately
$3.69 million of the total cost is considered a replacement share as a share
of the new hall will result in existing space at Fire Station #1 being
decommissioned. Due to funding envelope limitations, the full cost of the
new facility is intended to be funded from other development sources
including potentially future DC Background Studies.
The Township anticipates purchasing a new aerial in 2023 for a cost of $1.90
million. This vehicle is expected to be an addition to the fleet, and therefore,
no replacement or benefit to existing share has been identified.
Furthermore, a pick-up truck, ATV, and other additional equipment are
included in the capital program for a cost of $178,000. Lastly, a provision for
additional firefighterʼs equipment valued at $15,000 is also included for
recovery from in-period growth.
Altogether, the ten-year capital program for the Fire Services amounts to
$9.84 million. No grants or subsidies are expected to offset the cost of the
capital program. A deduction of $3.70 million is made to account for the
replacement and benefit to existing shares related to the decommissioning
of station #1 once the new fire station is constructed. A large share of the
capital program, $4.08 million, is deemed other development related costs,
and may be considered for recovery in subsequent development charge by-
laws. A portion of the capital program, $744,800, will be funded through the
Townshipʼs Fire Services DC Reserve Fund.
The remaining $1.33 million will be funded through development charges
over the period between 2024 and 2033 and has been included in the DC
rate calculations. The ten-year development-related net capital cost is
allocated 75 per cent ($999,841) to residential development and 25 per cent
($333,280) to non-residential development. This ratio is based on the share
of ten-year population and employment growth. The residential share of the
net development-related capital cost is divided by the ten-year forecast
growth in population in new units (1,956) to derive a charge of $511.13 per
Appendix B | 69
capita. The non-residential share of the net development-related capital
cost is divided by the ten-year forecast growth in floor space (36,170) to
derive a charge of $9.21 per square metre.
A summary of the service area 15-year average historic service level in dollars per capita, the gross cost and net recoverable portions of the 2024-2033 growth-related capital program, and the resulting development charge per capita for residential development, or per square metre for non-residential developments.
Appendix B | 70
Table B.2-1 includ
es the inventory and 15-year
historical s
ervice lev
el calcul
ations of Fi
re S
ervi
ces
asse
ts i
n th
e To
wnsh
ip o
f Sc
ugog
fro
m 20
09-2
023.
Appendix B | 71
Conclusion of Tabl
e B.2-1 which includes the in
ventory and 1
5-ye
ar h
isto
rica
l se
rvic
e le
vel
calc
ulat
ions
of
Fire
Ser
vice
s assets in the Tow
nship
of Scu
gog fr
om 200
9-2023
.
Appendix B | 72
Table
B.2-2
sho
ws th
e 10-year develop
ment re
lated capital progr
am
for Fir
e Services over
the year
s 2
024-2033.
Appendix B | 73
Appendix B.3
Parks & Recreation
Appendix B | 74
Appendix B.3: Parks & Recreation
Parks and Recreation services in Scugog are carried out by the Community
Services Department. This department, is responsible for providing indoor
and outdoor recreation throughout the Township. The Townshipʼs parks and
recreation inventory includes playgrounds, sport fields, picnic areas and
other facilities such as tennis courts and skateboard parks. Indoor recreation
services are primarily delivered through community centres whereas outdoor
recreation opportunities are delivered through the Townshipʼs parks.
Table B.3-1
Historical Service Levels
The Township operates twelve indoor recreation buildings which have a
total area of approximately 112,300 square feet and a replacement value of
$52.09 million. This space includes recreation centres, community halls,
arenas, program rooms and other space. The land associated with the
Townshipʼs indoor recreation facilities totals 6.15 hectares with a value of
$6.81 million. The total replacement value of all indoor recreation furniture
and equipment, including ice resurfacers, is estimated at $3.22 million.
The Township of Scugogʼs inventory of parkland is separated into four
categories: community parks, neighbourhood parks, developed walkways
and trails. The cost of developing Scugogʼs total inventory of parkland is
$10.97 million. Note, the cost of parkland acquisition is not included in the
development charges inventory as per the DCA.
The Township is also responsible for the construction and operation of park
facilities including soccer fields, basketball courts, a disc golf course,
softball diamonds, skateboard parks, an outdoor pool and splash pad,
several playgrounds, and a variety of other outdoor amenities. The total
value of these facilities is $9.26 million. The inventory also includes small
outdoor buildings and rolling stock equipment; this infrastructure is valued
at $3.70 million.
Appendix B | 75
The combined value of capital assets for Parks & Recreation is $86.05
million. The fifteen-year historical average service level is $4,005.34 per
capita, and this, multiplied by the ten-year forecast growth in net population,
results in a maximum allowable funding envelope of $7.15 million.
Table B.3-2
Development-Related Capital Program and Calculation
of Development Charges
Indoor Recreation additions are the largest component of the Parks &
Recreation capital program with a gross cost of $57.52 million. The
Blackstock arena expansion and new pool construction are the two major
projects. The Township anticipates receiving grant funding of $35.81 million
to be put towards each of the projects, however, both grants at this time are
not confirmed and assumed funding sources for the purposes of this study.
The outdoor recreation component of the program totals $3.44 million and
provides for a new splash pad at Palmer Park, the development of several
new parks, a new spray pad, and development of the Townshipʼs trail
network. No grants or other subsidies have been identified for these outdoor
recreation projects. Furthermore, a replacement share equal to the cost of
the palmer park splash pad ($300,000) has been netted off the total cost to
reflect the decommissioning with the construction of a new one; this amount
will not be recovered through development charges.
The ten-year capital program for Parks & Recreation totals $60.96 million.
After deductions for grants, subsidies and other recoveries, the capital
program is reduced to $25.14 million. The benefit to existing and
replacement shares amount to $2.99 million, which is related to the
Blackstock Arena expansion, the Blackstock Complex, and the Palmer Park
splash pad; this amount will not be recovered through development charges.
The BTE associated to Blackstock arena represents the share of the existing
Blackstock arena that will be decommissioned upon construction of the new
facility. Additionally, a portion of this capital program related to the new
Appendix B | 76
pool, Blackstock Arena expansion, and Blackstock Complex, $13.19 million,
is deemed other development related costs, and may be considered for
funding from other sources or recovery in subsequent development charges
by-laws. Available reserve funds in the amount of $1.82 million will be used
to offset the cost of the program.
The remaining $7.15 million is considered eligible DC costs between 2024
and 2033, which is allocated entirely against future residential development
in the Township of Scugog. This results in a charge of $3,652.87 per capita.
A summary of the service area 15-year average historic service level in dollars per capita, the gross cost and net recoverable portions of the 2024-2033 growth-related capital program, and the resulting development charge per capita for residential development, or per square metre for non-residential developments.
Appendix B | 77
Table B.3-1 includ
es the inventory and 15-yea
r historical servi
ce level calculations of Parks and R
ecreation
assets in
the Township
of
Scug
og f
rom
2009
-202
3
.
Appendix B | 78
Continuation of Ta
ble B.3-1 which includes th
e inventory and 15
-year historical service level calcu
latio
ns of Par
ks and Recrea
tion
ass
ets
in t
he T
owns
hip
of S
cugo
g fr
om 2
009-
2023
.
Appendix B | 79
Continuation of Ta
ble B.3-1 which includes th
e inventory and 15
-year historical service level calculations of P
arks and Recrea
tion asse
ts in the
Tow
nshi
p of
Scu
gog
from
200
9-20
23.
Appendix B | 80
Continuation of Ta
ble B.3-1 which includes th
e inventory and 15
-year historical service level calculations of P
arks and Recreatio
n assets
in the To
wnsh
ip o
f Sc
ugog
fro
m 20
09-2
023.
Appendix B | 81
Continuation of Ta
ble B.3-1 which includes th
e inventory and 15
-year historica
l service lev
el calcul
ations of
Par
ks a
nd R
ecre
atio
n as
sets
in
the
Town
ship
of
Scug
og f
rom
2009-202
3.
Appendix B | 82
Continuation of Ta
ble B.3-1 which includes th
e inventory and 15
-year historica
l service level
calculations of Park
s and Rec
reation a
sset
s in
the
Tow
nshi
p of
Scu
gog
from
200
9-20
23.
Appendix B | 83
Continuation of Ta
ble B.3-1 which includes th
e inventory and 15
-year historica
l service l
evel calculation
s of Park
s and Rec
reat
ion
asse
ts i
n th
e To
wnsh
ip o
f Sc
ugog
fro
m 20
09-2
023.
Appendix B | 84
Continuation of Ta
ble B.3-1 which includes th
e inventory and 15
-year historica
l service level c
alculation
s of Park
s and Rec
reat
ion
asse
ts i
n th
e To
wnsh
ip o
f Sc
ugog
fro
m 20
09-2
023.
Appendix B | 85
Continuation of Ta
ble B.3-1 which includes th
e inventory and 15
-year historical service level calculations of
Parks and Recreation assets
in t
he T
owns
hip
of S
cugo
g fr
om 2
009-
2023
.
Appendix B | 86
Continuation
of Table B.3-1 wh
ich includes the inventory
and 15-year histor
ical service level calculations of Parks and Re
creation assets in the Townshi
p of Scug
og from
200
9-20
23.
Appendix B | 87
Conclusion of Tabl
e B.3-1 which includes the in
ventory and 15-yea
r hi
stor
ical
ser
vice
lev
el c
alcu
lati
ons
of P
arks
and
Rec
reat
ion assets in the T
ownshi
p of S
cugog
from 2
009-20
23.
Appendix B | 88
Table
B.3-2
sho
ws th
e 10-ye
ar development rela
ted
capita
l program for P
arks and
Rec
reation ove
r the years
2024-203
3.
Appendix B | 89
Appendix B.4
Services Related to a Highway:
Public Works: Buildings and Fleet
Appendix B | 90
Appendix B.4: Services Related to a
Highway: Public Works: Buildings and Fleet
This section covers the yards, buildings and fleet components of the
Townshipʼs Public Works operations. The Township of Scugog Public Works
Department is responsible for local road maintenance including plowing,
sanding, grading, ditching etc. The entire service is related to the Services
Related to a Highway service category as defined in the DCA.
Table B.4-1
Historical Service Levels
The Public Works department has two major depots; one in Blackstock and
one in Port Perry. The department also maintains several other buildings
including an equipment depot, cold storage, sand and salt storage, and sand
domes. The total replacement cost of all buildings is $4.91 million.
Approximately 6.23 hectares of land is associated with the Public Works
operations with a value of $2.33 million. In total, the public works fleet
inventory is valued at $8.38 million. Minor furniture and equipment add an
additional $684,500 to the inventory.
The total value of the Public Works: Buildings & Fleet capital inventory is
$16.31 million. The fifteen-year historical average service level is $552.98
per population and employment, and this, multiplied by the ten-year forecast
growth in net population and employment, results in a maximum allowable
funding envelope of $1.32 million.
Table B.4-2
Development-Related Capital Program and Calculation
of Development Charges
The Public Works: Buildings & Fleet capital program is comprised of two
parts: capital items related to buildings, land and furnishings; and capital
Appendix B | 91
items related to the acquisition of rolling stock. The ten-year development-
related capital plan for Public Works amounts to $2.78 million.
The buildings, land and furnishings component of the capital program
relates to the construction of a salt storage facility in 2024 for $780,000, a
consolidated works yard in 2025 that will cost $710,000 and a provision for
additional indoor storage over the planning period would needed - this
project is valued at $710,000. The rolling stock component of the capital
program totals $385,000 and relates to the acquisition of a sidewalk
plow/sweeper, a loader snow blower attachment, and a pick-up truck.
Half of the works yard is considered replacement and removed from the
calculation, so $355,000 is carried forward to be DC eligible. A portion of the
additional indoor storage project, $714,000, is considered other development
related costs and may be considered for recovery in subsequent DC by-laws.
The remaining $1.32 million is the 2024-2033 development-related DC
eligible cost.
The development-related cost is allocated 75 per cent, or $990,387, against
new residential development, and 25 per cent, or $330,129, against non-
residential development. This yields a residential development charge of
$506.30 per capita and non-residential charge of $9.13 per square metre.
A summary of the service area 15-year average historic service level in dollars per capita, the gross cost and net recoverable portions of the 2024-2033 growth-related capital program, and the resulting development charge per capita for residential development, or per square metre for non-residential developments.
Appendix B | 92
Table B.4-1 includ
es the inventory and 15-year
historical service level calculati
ons of Pu
blic Work
s asset
s in
the
Tow
nshi
p of
Scu
gog
from
200
9-20
23
.
Appendix B | 93
Continuation of Ta
ble B.4-1 which includes the
inventory and 15-year historical s
ervice le
vel calcu
lations
of
Publ
ic W
orks
ass
ets
in t
he T
owns
hip
of S
cugo
g fr
om 2
009-
2023.
Appendix B | 94
Continuation of Ta
ble B.4-1 which includes the
inventory and 15-year historical service level calculations o
f Public
Works asse
ts i
n th
e To
wnsh
ip o
f Sc
ugog
fro
m 20
09-2
023.
Appendix B | 95
Conclusion of Tabl
e B.4-1 which includes the in
ventory and 15-year historical service level calculations of P
ubli
c Wo
rks
asse
ts i
n th
e To
wnsh
ip o
f Sc
ugog
fro
m 20
09-2
023.
Appendix B | 96
Table
B.4-2
sho
ws th
e 10-year develop
ment re
lated capital progr
am
for Pub
lic Works over
the years
20
24-2033.
Appendix B | 97
Appendix B.5
By-Law Enforcement and Court Services
Appendix B | 98
Appendix B.5: By-Law Enforcement and
Court Services
As permitted under the DCA, By-law Enforcement and Provincial Court
Services are included in for recovery from DCs. In the Township of Scugog,
this includes enforcement of Animal Control By-laws. The Township of
Scugog and the Township of Uxbridge provide shared Animal Control
services for both municipalities. The funding of this service is split evenly
between the two Townships. In order to replace the existing outdated
facility, Animal Control service plans to construct a new facility.
Table B.5-1
Historical Service Levels
The Animal Control service operates out of one 1,700 square foot facility
with a replacement cost of $1.03 million, of which $517,100 is Scugogʼs
share. Land for the facility totals 0.12 hectares with a value of $90,000, of
which $45,000 is Scugogʼs share. The replacement cost of eligible
equipment is $29,100 and vehicles add another $210,000 to the inventory.
After deducting Uxbridgeʼs share of the inventory, Scugogʼs share of the
replacement cost of the 2023 inventory of capital assets is $734,100.
Scugogʼs share of the average historical service level over fifteen years is
$31.75 per capita. The historical service level is multiplied by the forecast
ten-year net population growth (1,784) to result in a maximum allowable
funding envelope of $56,642.
Table B.5-2
Development-Related Capital Program and Calculation
of Development Charges
The 2024-2033 development-related capital program totals $1.20 million and
reflects the Townshipʼs share of the gross costs. Note, the share of costs
funded through fundraising and has already been deducted from the gross
total, therefore, $1.20 million remains as the net municipal cost. Recognizing
Appendix B | 99
that the new animal shelter will result in the existing shelter to close, a
replacement share has been determined relative to the size of the current
facility being decommissioned, as a result, $467,655 has been netted off.
The current uncommitted reserve fund balance further reduces this figure by
$17,300. A share in the amount of $655,100 is deemed to be other
development related costs and it may be examined for recovery in the next
DC by-law update, subject to service level restrictions.
The remaining $56,642 will be funded through development charges over the
period of 2024 to 2033 and has been included in the DC rate calculations.
The ten-year development-related net capital cost is entirely allocated to
residential development. The resulting charge is $28.96 per capita.
A summary of the service area 15-year average historic service level in dollars per capita, the gross cost and net recoverable portions of the 2024-2033 growth-related capital program, and the resulting development charge per capita for residential development, or per square metre for non-residential developments.
Appendix B | 100
Table B.5-1 includ
es the inventory and 15-year
historical service level calculat
ions of B
y-Law Enf
orcement
and
Cou
rt S
ervi
ces
asse
ts i
n th
e To
wnsh
ip o
f Sc
ugog
fro
m 20
09-2023
.
Appendix B | 101
Conclusion of Tabl
e B.5-1 which includes the i
nventory and 15-year historical se
rvic
e le
vel
calc
ulat
ions
of
By-L
aw E
nfor
ceme
nt a
nd C
ourt
Ser
vices assets in the
Towns
hip of
Scugo
g from
2009-
2023.
Appendix B | 102
Table
B.5-2
sho
ws th
e 10-year develop
ment re
lated capital progr
am
for By-
Law Enforcement
and Cour
t S
ervices ove
r the years
2024-203
3.
Appendix B | 103
Appendix B.6
Development-Related Studies
Appendix B | 104
Appendix B.6: Development-Related
Studies
As of December 13, 2023, the Minister of Municipal Affairs and Housing has
indicated further consultation to inform further potential changes to the DCA,
one of which is related to a review of the removal of development related
studies from recovery under the DCA. At the time of publishing this DC
Background Study, studies have not yet been re-instated as an eligible capital
cost, but in anticipation of a change of legislation, a Development Related
Studies capital program has been included in this DC Background Study.
Table B.6-1
Development-Related Capital Program and Calculation
of Development Charges
The 2024-2033 development-related gross cost for Studies is $836,000 and
includes for Development Charges updates, Official Plan updates, Zoning
By-law updates, and other planning studies have been included.
Recognizing that not all studies under this service are entirely necessitated
by new development in the Township, benefit to existing shares have been
identified and reduced from the net municipal costs. In total, the benefit to
existing shares amount to $241,000 and this amount will not be recovered
through development charges. The Township has an uncommitted reserve
fund of $141,900 which is applied towards the projects.
The remaining amount of $428,100 is eligible for development charges
funding in the 10-year planning period. This amount is included in the
development charge calculation and is allocated 75%, or $321,045 to the
residential sector and 25%, or $107,015 to the non-residential sector based
on shares of 10-year growth in net population and employment. The
resulting per capita charge is $164.12. The non-residential charge is $2.96
per square metre.
Appendix B | 105
The following table summarizes the calculation of the Development-Related
Studies development charge.
A summary of the service ar
ea 15
-year average hist
oric ser
vice l
evel in
dollars
per cap
ita,
the gross
cost and
net recoverable portions of th
e 2024-2033 growth-related capital program, and the resulting development charge per capita for residential development, or per square metre for non-residential developments.
Appendix B | 106
Table
B.6-1
sho
ws th
e 10-year develop
ment re
lated capital progr
am
for Dev
elopment-Relate
d Studies
ov
er the year
s 2024-2033
.
Appendix B | 107
Appendix C
Township Engineering Technical Appendix
Appendix C | 108
Township Engineering Technical Appendix
This appendix provides the detailed analysis undertaken to establish the
development charge rates for the Township Engineering service category in
Scugog. This service category includes Services Related to a Highway and
Storm Water Drainage Infrastructure. This capital program consists of road
and related work, sidewalks and multi-use trails, storm water management,
intersection improvements and other infrastructure.
The capital planning and management of all infrastructure projects in the
Township of Scugog is carried out by the Public Works and Infrastructure
Services. This section was informed by the work completed for the
Township by Paradigm Transportation Solutions Limited for the 2019 DC
Study and updated with more recent costing where available.
The development-related Township Engineering service category
infrastructure projects are required to service the demands of new
development up to 2033. This forecast is discussed in more detail in
Appendix A.
The following tables set out the 2024 to 2033 development-related capital
forecast and the calculation of the development charges for the Township
Engineering service category. The projects identified in the capital program
are required to service the demands of new development between 2024 and
2033, subject to annual capital budget reviews.
Table C.1
Historical Service Levels
Table C.1 demonstrates that the Townshipʼs current transportation and
storm water drainage infrastructure comprise of about 414 kilometers of
roadway with a replacement value of approximately $691.91 million,
sidewalks with a replacement value of approximately $19.67 million, and
bridges, culverts and streetlights with a replacement value of approximately
Appendix C | 109
$51.93 million in 2023. This produces a fifteen-year historical service level of
$24,211.27 per population and employment. The resulting maximum
allowable funding envelope is $57.82 million ($24,211.27 x 2,388 net
population and employment growth over the planning horizon to 2033).
Table C.2
Development-Related Capital Program and Calculation of
Development Charges
The total cost of the Township Engineering service category capital program
is $41.60 million and provides for the undertaking of projects throughout the
Township. Individual project costs were estimated using representative
benchmark unit prices derived from recent construction tenders received by
the municipality.
The entire $41.60 million development-related capital program is not to be
fully recovered from future development charges. Grants or subsidies make
up $4.56 million for the Lake Scugog enhancement project and developer
contributions to a stormwater management pond in the Port Perry
Employment Area. Approximately $19.39 million of the program has been
identified as a non-growth or benefit to existing share. Existing available
development charges reserve funds of $2.39 million will be used to offset
the cost of the program. Two projects, Whitfield Road (road work) and Old
Simcoe Road and King Street (intersection improvement), are deemed to
benefit development beyond 2033 and therefore their cost attributable to
post period development of $1.09 million has been netted off the DC shares
in the 2024-2033 period.
The result is a development-related and DC recoverable share of the capital
program of $14.17 million. The development-related cost has been allocated
75 per cent ($10.62 million) to new residential development and 25 per cent
($3.54 million) to new non-residential development. The allocation of costs
is based on shares of population and employment growth over the planning
period. The $10.62 million residential share divided by the forecast increase
Appendix C | 110
in population in new units to 2033 (1,956) results in a per capita charge of
$5,431.52 and the non-residential share of $3.54 million divided by the
growth in square metres of floor space (36,170) results in a per square
metre charge of $97.92.
The non-residential share of the Township Engineering service category
charge has been calculated separately for three types of development -
industrial, commercial and institutional. The capital program costs were split
according to each useʼs share of total place of work employment growth to
2033 (details in Appendix A).
The resulting non-residential rates are:
-
Industrial Charge:
$71.93 per square metre
-
Commercial Charge:
$200.72 per square metre
-
Institutional Charge: $135.03 per square metre
A summary of the service area 15-year average historic service level in dollars per capita, the gross cost and net recoverable portions of the 2024-2033 growth-related capital program, and the resulting development charge per capita for residential development, or per square metre for non-residential developments.
Appendix C | 111
Table C.1 includes
the inventory and 15-year h
istorical service le
vel c
alculatio
ns of Townsh
ip E
ngin
eeri
ng a
sset
s in
the
Tow
nshi
p of
Scu
gog
from
200
9-20
23
.
Appendix C | 112
Conclusion of Tabl
e C.1 which includes the inve
ntory and 15-year hi
stor
ical
ser
vice
lev
el c
alcu
lati
ons
of T
owns
hip
Engi
neer
ing
assets in the Towns
hip of
Scugo
g from
2009-
2023.
Appendix C | 113
Table
C.2 sh
ows
the 10-year dev
elopment
related
cap
it
al pro
gram fo
r Township Engi
neering o
ver the yea
rs 2024-203
3.
Appendix C | 114
Concl
usion o
f T
able C.2 which s
hows the
10-year
dev
el
opment
relate
d capital progr
am for To
wnship Engi
neering ove
r the yea
rs 20
24-2
033
.
Appendix C | 115
Appendix D
Reserve Funds
Appendix D | 116
Reserve Funds
The DCA requires that a reserve fund be established for each service for
which development charges are collected. Table 1 presents the
uncommitted reserve fund balances that are available to help fund the
development-related net capital costs identified in this study. The opening
balances of the development charges reserve funds as at December 31,
2023, have been adjusted to account for current commitments to projects.
All of the available reserve fund balances are therefore accounted for in this
study.
As shown on Table 1, the December 31, 2023 total reserve fund balance was
approximately $5.60 million.
The application of the available uncommitted balance in each of the reserve
funds is discussed in the appendix section related to each service. These
funds are assigned to projects in the initial years of the capital program for
each service. This has the effect of reducing and deferring capital costs
brought forward to the development charge calculation and the cash flow
analysis.
Appendix D | 117
Shows t
he deve
lopment charge r
eserve fund balan
ces as of Decemb
er 31,
2023 for each
servic
e
: Library Services
, Fire Se
r
vices, Parks & Recreation, Serv
ices Re
l
ated to a Highway: Public Works: B
uildin
g
s & Fleet, Bylaw Enf
orcement
&
Cour
t Services
, Developm
ent-Related Studie
s, and Township Engineering.
Appendix D | 118
Appendix E
Cost of Growth Analysis
Appendix E | 119
Cost of Growth Analysis
A.
Asset Management Plan
The Development Charges Act requires that municipalities complete an
Asset Management Plan before passing a development charges by-law. A
key function of the Asset Management Plan is to demonstrate that all assets
proposed to be funded under the development charges by-law are financially
sustainable over their full life-cycle.
i.
Asset Types
A summary of the future Township-owned assets and estimated useful life
assumptions for eligible DC services considered as part of the study are
outlined in Table E.1. Although all capital assets considered in the study
have been identified, not all assets necessitate future replacement or
ongoing maintenance activities. Some projects do not relate to the
emplacement of a tangible capital asset, such as the recovery of completed
projects. These costs do not necessarily require future replacement or
ongoing maintenance. Such projects are identified as "not infrastructure" in
the table.
It should be noted that the capital cost estimates prepared for each of the
projects identified in this section include grouped costs of various individual
elements, which, as a stand-alone item, may have its own useful life (for
example, new buildings include HVAC, structural elements, roof, etc.).
Accordingly, the average useful life assumptions noted below are applicable
to all project components.
Appendix E | 120
Table E.1 - Summary of Municipal Assets Useful Lives
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
Service
Estimated Useful Life
Library Services
Materials and Equipment
New Blackstock Library
Express Library
10 years
45 years
15 years
Fire Protection
New Fire Station
Vehicles
Equipment
45 years
20 years
15 years
Parks and Recreation
Pool Design and Construction
Blackstock Arena Expansion
New Recreation Complex
New Splash/Spray Pad
Park Development
40 years
30 years
45 years
15 years
20 years
Services Related to a Highway
Storage/Works Yards
Licensed Vehicles
Equipment
40 years
10 years
15 years
Bylaw Enforcement
Animal Shelters
Equipment
40 years
10 years
Appendix E | 121
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 E.2 provides the calculated annual asset management contribution for
both the gross capital expenditures and the share related to the 2024 to
2034 DC recoverable portion. The year 2034 has been included to calculate
the annual contribution for the planning periods 2024 to 2033 and as the
expenditures in 2033 will not trigger asset management contributions until
2034. As shown, by 2034, the Township will need to fund an additional
$882,000 in order to properly fund the full life cycle costs of the new assets
related to all services supported under the development charges by-law.
2024 - 2033
Calculated AMP Annual
Capital Program
Provision by 2034
Service
DC Recoverable Non-DC Funded
DC Related
Non-DC Related
Library Services
739,000
$
2,871,000
$
27,000
$
72,000
$
Fire Services
2,078,000
$
7,765,000
$
106,000
$
188,000
$
Parks & Recreation
8,964,000
$
51,993,000
$
379,000
$
1,619,000
$
Services Related To A Highway: Public Works: Buildings & Fleet
1,520,000
$
355,000
$
58,000
$
9,000
$
Bylaw Enforcement & Court Services
66,000
$
1,119,000
$
2,000
$
29,000
$
Township Engineering
16,556,000
$
25,042,000
$
310,000
$
453,000
$
Total
29,923,000
$
89,145,000
$
882,000
$
2,370,000
$
Note: DC Eligible funding includes 10-year period funding from DCs and DC Reserve Funding
APPENDIX E
TABLE E.2
TOWNSHIP OF SCUGOG
CALCULATED ANNUAL AMP PROVISION
Appendix E | 122
iii.
Future Revenue Growth
The calculated annual funding provision should be considered within the
context of the Municipalityʼs projected growth. Over the next ten years, the
Municipalityʼs population is projected to increase by 1,784. In addition, the
Municipality will also add 266 employees that will result in approximately
36,170 square metres of additional non-residential building space.
This growth will have the effect of increasing the overall assessment base.
This leads to additional user fee and charge revenues to offset the capital
asset provisions required to replace the infrastructure proposed to be
funded under the development charges by-law. The collection of these
funds is intended to be allocated to the Townshipʼs reserves for future
replacement of these assets.
B.
Long-Term Capital and Operating Impacts
As shown in Table E.3, by 2033 the Townshipʼs net operating costs are
estimated to increase by $2.87 million for property tax supported services.
Increases in net operating costs will be experienced as there are operational
costs associated with additional capital.
Table E.4 summarizes the components of the development-related capital
forecast that will require funding from non-DC sources (e.g. property tax) for
the planning period 2024 to 2033. In total, $27.13 million will need to be
funded from non-DC sources over the planning period and is related to
facilities and infrastructure that will benefit the existing community.
Council is made aware of these factors so that they understand the
operating and capital costs that will not be covered by DCs as it adopts the
development-related capital forecast set out in the study.
Appendix E | 123
Cost Driver
Category
(in 2024$)
$
unit meaure
Quantity
Library Services
New Blackstock Complex (8,000 sq. feet)
$0.14 per $1.00 new infrastructure
$3,440,000
$487.8
Fire Services
Additional Rolling Stock
$0.15 per $1.00 of new rolling stock
$1,980,000
$297.0
New Fire Station
$50.00 per sq. foot of additional space
13,100
$655.0
Parks & Recreation
New Complex at Blackstock
$15.00 per sq. foot of additional space
36,790
$551.8
New Pool
$300,000.00 per year
$300.0
Parkland and Trail Development
$0.07 per $1.00 additional parks and trails
$3,440,000
$243.9
Services Related to a Highway: Public Works: Buildings & Fleet
Additional Rolling Stock
$0.10 per $1.00 of new rolling stock
$385,000
$38.5
Bylaw Enforcement & Court Services
New Animal Shelter
$35.00 per sq.ft. of Scugog's Share
1,838
$64.3
Township Engineering
New Roads Construction
$300.00 per new household
770
$231.0
TOTAL ESTIMATED GROWTH-RELATED OPERATING COSTS ($000)
$2,869.4
APPENDIX E
TABLE E.3
TOWNSHIP OF SCUGOG
ESTIMATED NET OPERATING COST OF THE PROPOSED
GROWTH-RELATED CAPITAL PROGRAM
(in constant 2024 dollars)
Operating
Costs at 2033
(000's)
Total DC
Net
Replacement
Eligible
Municipal
& Benefit to
Available
Post-2033
Costs for
Cost
Existing
DC Reserves
Benefit
Recovery
($000's)
($000's)
($000's)
($000's)
($000's)
1.0
LIBRARY SERVICES
$1,890.0
$0.0
$99.2
$1,150.7
$640.1
2.0
FIRE SERVICES
$9,842.5
$3,689.0
$744.8
$4,075.6
$1,333.1
3.0
PARKS & RECREATION
$25,145.3
$2,987.0
$1,818.9
$13,193.9
$7,145.5
4.0
PUBLIC WORKS: BUILDINGS & FLEET
$2,778.0
$355.0
$388.6
$713.9
$1,320.5
5.0
BYLAW ENFORCEMENT & COURT SERVICES
$1,196.6
$467.7
$17.3
$655.0
$56.6
6.0
DEVELOPMENT RELATED STUDIES
$811.0
$241.0
$141.9
$0.0
$428.1
7.0
TOWNSHIP ENGINEERING
$37,039.4
$19,392.0
$2,389.9
$1,091.1
$14,166.4
TOTAL 10 YEAR PROGRAM
$78,702.8
$27,131.6
$5,600.6
$20,880.2
$25,090.4
APPENDIX E
TABLE E.4
Development-Related Capital Forecast
TOWNSHIP OF SCUGOG
SUMMARY OF UNADJUSTED RESIDENTIAL AND NON-RESIDENTIAL DEVELOPMENT CHARGES
CAPITAL PROGRAM FOR ALL SERVICES
Appendix E | 124
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 planning period.
Importantly, the Townshipʼs annual budget review allows staff to continue to
monitor and implement mitigating measures should the program become
less sustainable.
Appendix E | 125