2025 Development Charges Background Study (South Dundas)

South Dundas, Ontario · summary & facts

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Watson & Associates Economists Ltd. 905-272-3600 April 23, 2025 [email protected] 2025 Development Charges Background Study Municipality of South Dundas ________________________ For Public Circulation and Comment Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table of Contents Page Executive Summary ....................................................................................................... i 1. Introduction ...................................................................................................... 1-1 1.1 Purpose of this Document ....................................................................... 1-1 1.2 Summary of the Process ......................................................................... 1-2 1.3 Changes to the Development Charges Act, 1997 ................................... 1-3 1.3.1 COVID-19 Economic Recovery Act, 2020 (Bill 197) .................. 1-3 1.3.2 Better for People, Smarter for Business Act, 2020, (Bill 213) ............................................................................................ 1-6 1.3.3 More Homes for Everyone Act, 2022 (Bill 109) .......................... 1-6 1.3.4 More Homes Built Fast Act, 2022 (Bill 23) ................................. 1-6 1.3.5 Cutting Red Tape to Build More Homes Act, 2024 (Bill 185) ... 1-10 2. Current Municipality D.C. Policy .................................................................... 2-1 2.1 Background ............................................................................................. 2-1 3. Anticipated Development in the Municipality ............................................... 3-1 3.1 Requirement of the Act ........................................................................... 3-1 3.2 Basis of Population, Household and Non-Residential Gross Floor Area Forecast ......................................................................................... 3-1 3.3 Summary of Growth Forecast ................................................................. 3-2 4. The Approach to the Calculation of the Charge ........................................... 4-1 4.1 Introduction ............................................................................................. 4-1 4.2 Services Potentially Involved .................................................................. 4-1 4.3 Increase in the Need for Service ............................................................. 4-1 4.4 Local Service Policy ................................................................................ 4-6 4.5 Capital Forecast ...................................................................................... 4-6 4.6 Treatment of Credits ............................................................................... 4-7 4.7 Eligible Debt and Committed Excess Capacity ....................................... 4-7 4.8 Existing Reserve Funds .......................................................................... 4-8 Table of Contents (Cont'd) Page Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 4.9 Deductions .............................................................................................. 4-8 4.9.1 Reduction Required by Level of Service Ceiling ........................ 4-8 4.9.2 Reduction for Uncommitted Excess Capacity ............................ 4-9 4.9.3 Reduction for Benefit to Existing Development .......................... 4-9 4.9.4 Reduction for Anticipated Grants, Subsidies and Other Contributions ............................................................................ 4-10 4.10 Municipal-Wide vs. Area Rating ............................................................ 4-11 4.11 Allocation of Development .................................................................... 4-11 5. D.C.-Eligible Cost Analysis by Service .......................................................... 5-1 5.1 Introduction ............................................................................................. 5-1 5.2 Service Levels and 10-Year Capital Costs for D.C. Calculation .............. 5-1 5.2.1 Fire Protection Services ............................................................. 5-1 5.2.2 Services Related to a Highway .................................................. 5-2 5.2.3 Parks and Recreation Services .................................................. 5-2 5.2.4 Growth-Related Studies ............................................................. 5-3 6. D.C. Calculation ............................................................................................... 6-1 7. D.C. Policy Recommendations and D.C. Policy Rules ................................. 7-1 7.1 Introduction ............................................................................................. 7-1 7.2 D.C. By-law Structure ............................................................................. 7-2 7.3 D.C. By-law Rules ................................................................................... 7-2 7.3.1 Payment in any Particular Case ................................................. 7-2 7.3.2 Determination of the Amount of the Charge ............................... 7-2 7.3.3 Application to Redevelopment of Land (Demolition and Conversion) ................................................................................ 7-3 7.3.4 Exemptions (full or partial) ......................................................... 7-3 7.3.5 Transition ................................................................................... 7-4 7.3.6 Timing of Collection ................................................................... 7-4 7.3.7 Indexing ..................................................................................... 7-5 7.3.8 D.C Spatial Applicability ............................................................. 7-5 7.4 Other D.C. By-law Provisions ................................................................. 7-7 7.4.1 Categories of Services for Reserve Fund and Credit Purposes .................................................................................... 7-7 7.4.2 By-law In-force Date .................................................................. 7-7 7.4.3 Minimum Interest Rate Paid on Refunds and Charged for Inter-Reserve Fund Borrowing ................................................... 7-7 7.5 Other Recommendations ........................................................................ 7-7 8. Asset Management Plan ................................................................................. 8-1 8.1 Introduction ............................................................................................. 8-1 8.2 Asset Management Plan ......................................................................... 8-3 Table of Contents (Cont'd) Page Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 9. By-law Implementation ................................................................................... 9-1 9.1 Public Consultation Process ................................................................... 9-1 9.1.1 Introduction ................................................................................ 9-1 9.1.2 Public Meeting of Council........................................................... 9-1 9.1.3 Other Consultation Activity ......................................................... 9-1 9.2 Anticipated Impact of the Charge on Development ................................. 9-2 9.3 Implementation Requirements ................................................................ 9-3 9.3.1 Introduction ................................................................................ 9-3 9.3.2 Notice of Passage ...................................................................... 9-3 9.3.3 By-law Pamphlet ........................................................................ 9-3 9.3.4 Appeals ...................................................................................... 9-4 9.3.5 Complaints ................................................................................. 9-4 9.3.6 Credits ....................................................................................... 9-5 9.3.7 Front-Ending Agreements .......................................................... 9-5 9.3.8 Severance and Subdivision Agreement Conditions ................... 9-5 Appendix A Background Information on Residential and Non-Residential Growth Forecast ............................................................................................. A-1 Appendix B Level of Service ................................................................................... B-1 Appendix C Long-Term Capital and Operating Cost Examination ...................... C-1 Appendix D Local Service Policy ............................................................................ D-1 Appendix E Proposed Development Charge By-law .............................................. E-1 Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx List of Acronyms and Abbreviations Acronym Full Description of Acronym D.C. Development charge D.C.A. Development Charges Act, 1997 as amended G.F.A. Gross floor area LPAT Local Planning Appeal Tribunal N.F.P.O.W. No Fixed Place of Work OLT Ontario Land Tribunal O. Reg. Ontario Regulation P.O.A. Provincial Offences Act P.P.U. Persons per unit s.s. Subsection sq.m. square metre sq.ft. square foot/feet km kilometer(s) Executive Summary Watson & Associates Economists Ltd. PAGE i H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Executive Summary 1. The report provided herein represents the Development Charges (D.C.) Background Study for the Municipality of South Dundas (Municipality) required by the Development Charges Act, 1997 (D.C.A.). This report has been prepared in accordance with the methodology required under the D.C.A. The contents include the following: - Chapter 1 - Introduction and overview of the legislative requirements of the D.C.A.; - Chapter 2 - Current Municipality D.C. policy - Chapter 3 - Summary of the residential and non-residential growth forecasts for the Municipality; - Chapter 4 - Approach to calculating the D.C.; - Chapter 5 - Review of historical service standards and identification of D.C. recoverable capital costs to service growth; - Chapter 6 - Calculation of the D.C.s; - Chapter 7 - D.C. policy recommendations and D.C. by-law rules; - Chapter 8 - Asset management plan requirements of the D.C.A.; and - Chapter 9 - By-law implementation. 2. D.C.s provide for the recovery of growth-related capital expenditures from new development. The D.C.A. is the statutory basis to recover these charges. The methodology is detailed in Chapter 4; a simplified summary is provided below: 1) Identify amount, type and location of growth; 2) Identify servicing needs to accommodate growth; 3) Identify capital costs to provide services to meet the needs; 4) Deduct: - Grants, subsidies and other contributions; - Benefit to existing development; - Amounts in excess of 15-year historical service calculation; - D.C. reserve funds; Watson & Associates Economists Ltd. PAGE ii H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 5) Net costs are then allocated between residential and non-residential benefit; and 6) Net costs divided by growth to provide the D.C. calculation. 3. Changes to the D.C.A. were introduced through five bills passed in the Ontario legislature over the past five years: Bills 197, 213, 109, 23, 97, 134, and 185. The following provides a brief summary of the recent changes: Bill197, COVID-19 Economic Recovery Act, 2020 The COVID-19 Economic Recovery Act received Royal Assent on July 21, 2020 and was proclaimed on September 18, 2020. The following provides a summary of the additional changes to the D.C.A. that are now in effect: The D.C.A. previously defined ineligible services for D.C.s. The amendments to the D.C.A. now defined the services that are eligible for inclusion in a D.C. by-law. The following summarizes the D.C. eligible services: - Water supply services, including distribution and treatment services; - Wastewater services, including sewers and treatment services; - Storm water drainage and control services; - Services related to a highway; - Electrical power services; - Toronto-York subway extension, as defined in subsection 5.1 (1); - Transit services other than the Toronto-York subway extension; - Waste diversion services; - Policing services; - Fire protection services; - Ambulance services; - Library Services; - Long-term care services; - Parks and recreation services (excluding the acquisition of land for parks); - Public health services; - Childcare and early years services; - Housing services; - Provincial Offences Act services; Watson & Associates Economists Ltd. PAGE iii H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx - Services related to emergency preparedness; - Services related to airports, but only in the Regional Municipality of Waterloo; and - Additional services as prescribed. Furthermore, Bill 197 removed the maditory 10% reductoin on soft services, allowed for the creation of classes of service and providing exemptions for additional residential dwelling units. Bill 213: Better for People, Smarter for Business Act, 2020 Bill 213 received Royal Assent on December 8, 2020. Bill 213 provided a statutory exemption to the payment of D.C.s. for Land vested in or leased to a university that receives regular and ongoing operating funds from the government for the purposes of post-secondary education and if the proposed development in respect of which development charges would otherwise be payable is intended to be occupied and used by the university. Bill 109: More Homes for Everyone Act, 2022 On April 14, 2022, Bill 109 received Royal Assent. One of the changes of the Bill and Ontario Regulation (O. Reg.) 438/22 that took effect upon Royal Assent included amending the D.C.A. and O. Reg. 82/98 related to the requirements for the information which is to be included in the annual Treasurer's statement on D.C. reserve funds and the requirement for publication of the statement. Further information is provided in subsection 1.3.5. Bill 23: More Homes Built Faster Act, 2022 On November 28, 2022, Bill 23 received Royal Assent. This Act amends a number of pieces of legislation including the Planning Act and the D.C.A. Subsequently, further amendments to these provisions were made through Bills 97 and 134. The following provides a summary of the changes to the D.C.A. (further details are provided in subsection 1.3.6 of this report): - Additional residential unit exemption: Allowance of a third unit to be exempt from D.C.s in existing and new residential dwellings; - Removal of housing as an eligible D.C. service; Watson & Associates Economists Ltd. PAGE iv H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx - New statutory exemptions for affordable units, attainable units (to be in effect upon proclamation by the Lieutenant Governor); - New statutory exemptions for inclusionary zoning units, and non-profit housing developments; - Historical level of service extended to 15-year period instead of the prior 10-year period; - Capital cost definition may be revised to prescribe services for which land or an interest in land will be restricted; - Capital cost definition has been revised to remove studies; - Mandatory reduction for new D.C. by-laws passed after November 28, 2022, as follows: o Year 1 - 80% of the maximum charge; o Year 2 - 85% of the maximum charge; o Year 3 - 90% of the maximum charge; o Year 4 - 95% of the maximum charge; and o Year 5 to expiry - 100% of the maximum charge. - D.C. by-law expiry will be 10 years after the date the by-law comes into force (unless repealed earlier); - D.C. for rental housing developments to receive a discount as follows: o Three or more bedrooms - 25% reduction; o Two bedrooms - 20% reduction; and o All other bedroom quantities - 15% reduction. - Maximum interest rate for installments and determination of charge for eligible site plan and zoning by-law amendment applications to be set at the average prime rate plus 1%; and - Requirement to allocate funds received- municipalities will be required to spend or allocate at least 60% of their reserve fund at the beginning of the year for water, wastewater, and services related to a highway. Bill 185: Cutting Red Tap to Build More Homes Act, 2024 (Bill 185) On June, 6, 2024, Bill 185 received Royal Assent and includes the following changes to the D.C.A. - The removal of the Mandatory Phase-in for D.C. by-laws passed after Bill 185 comes into effect; Watson & Associates Economists Ltd. PAGE v H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx - A reduction to the D.C. rate freeze timelines for developments proceeding though site plan and zoning by-law amendment applications under the Planning Act. Charges are currently held at rates in place on the date the application is made until building permit issuance, provided the building permit is issued within two (2) years of the approval of the application. This time period is proposed to be reduced to 18 months under Bill 185 (note that the two (2) year timeline will still apply to applications received prior to Bill 185 receiving Royal Assent); - Inclusion of growth-related studies, including the D.C. background study, as a D.C.-eligible costs; - Provide a provision of the D.C. by-law specifying the date the by-law expires or to amend the provision to extend the expiry date; - To allow minor amendments related to the imposition of studies, removal of the mandatory phase-in, and extension of by-law expiry dates (subject to the 10-year limitations provided in the D.C.A.) to be undertaken for by-laws passed after November 28, 2022 and before Bill 185 takes effect; and - To modernize public notice requirements. 4. The Municipality is undertaking a D.C. public process and anticipates passing a new by-law for the eligible services. The mandatory public meeting has been set for May 20, 2025, with adoption of the by-law anticipated for July 16, 2025, with an effective date of July 16, 2025. 5. The growth forecast (Chapter 3) on which the D.C. is based, projects the following population, housing and non-residential floor area for the 10-year (early-2025 to early-2035) period. Watson & Associates Economists Ltd. PAGE vi H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table ES-1 Summary of Growth Forecast by Planning Period Measure 10 Year 2025 to 2035 (Net) Population Increase 506 Residential Unit Increase 254 Non-Residential - Gross Floor Area Increase (sq.ft.) 211,100 Source: Watson & Associates Economists Ltd. forecast 2025. 6. Chapter 5 herein provides, in detail and by service area, the gross capital costs for the increase in need to service new development and the respective deductions that have been made to arrive at the D.C. recoverable costs included in the calculation of the charge. The following Municipality-wide services are calculated based on a 10-year forecast: - Fire Protection Services; - Services Related to a Highway; - Parks and Recreation Services; and - Growth-Related Studies. A summary of the total growth-related costs is provided below in Table ES-2. Table ES-2 Summary of Expenditures Anticipated Over the Respective Forecast Periods Summary of Expenditures Anticipated Over the Life of the By-law Expenditure Amount Total Gross Capital Costs 5,922,000 Less: Benefit to Existing Development 3,040,600 Less: Other Deductions 5,000 Less: Post Period Benefit Deductions 77,900 Less: Grans, Subsidies and Other Dedcutions 2,000 Net Costs to be Recovered from Development Charges 2,796,300 Based on the above table, the total growth related costs are $5.9 million over the 10 years of which $2.8 million (47%) is recoverable from D.C.s. Of the net $2.8 Watson & Associates Economists Ltd. PAGE vii H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx million included in the calcualtion, $2.4 million is recoverable from residential development and $0.4 million from non-residential development. It is noted also that any exemptions or reductions in the charges would reduce this recovery further. This suggests that non-D.C. costs over the forecast period will total $3.1 million. This report has undertaken a calculation of charges based on the anticipated development summarized in Table ES-1 and the future identified needs presented in Table ES-2. Charges have been provided on a Municipality-wide basis. The corresponding single detached unit charge is $10,523. The non- residential charge is $1.92 per square foot of building area. The calculated schedule of charges is presented in Table ES-3. Watson & Associates Economists Ltd. PAGE viii H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table ES-3 Calculated Schedule of Development Charges NON-RESIDENTIAL Single and Semi- Detached Dwelling Other Multiples Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom (per sq.ft. of Gross Floor Area) Municipal Wide Services/Class of Service: Fire Protection Services 2,602 2,140 1,792 1,296 1.15 Services Related to a Highway 750 617 517 374 0.33 Parks and Recreation Services 6,889 5,667 4,746 3,432 0.39 Growth-Related Studies 282 232 194 141 0.05 Total Municipal Wide Services/Class of Services 10,523 8,656 7,249 5,243 1.92 RESIDENTIAL Service/Class of Service Watson & Associates Economists Ltd. PAGE ix H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 7. Chapter 7 outlines the D.C. by-law policy recommendations and rules as summarized below: - Timing of Collection: o D.C.s to be calculated and payable at the time of building permit issuance o D.C.s for developments proceeding through Site Plan or Zoning By- law Amendment applications will be determined based on the charges in effect on the day of the application (charges to be frozen for a maximum period of 18 months after planning application approval) o Rental housing and institutional developments would pay D.C.s in six equal annual payments, commencing from the date of occupancy - Statutory D.C. Exemptions: o Upper/Lower Tier Governments and School Boards o Development of lands intended for use by a university that received operating funds from the Government o Existing industrial building expansions (may expand by 50% with no D.C.) o Additional residential units in existing and new residential buildings  May add up to two apartments for a single detached, semi- detached or row house (only one unit can be in an ancillary structure)  One additional unit or 1% of the units in an existing rental residential building with four or more residential units o Non-profit housing o Inclusionary zoning affordable units o Affordable housing - D.C. discounts for rental housing development based on dwelling unit type: o >2 bedrooms - 25% discount o 2 bedrooms - 20% discount o <2 bedrooms - 15% discount - Non-Statutory Deductions: o Farm buildings; Watson & Associates Economists Ltd. PAGE x H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx o a Place of worship, cemetery, and burial ground; and o Group B, Division 2 (Care and treatment occupancies) as defined on the Ontario Building Code Act. - Redevelopment credits provided where building permit issuance occurs within five years for conversion or demolitions of existing structures - Charges to be indexed annually on January 1st, in accordance with the D.C.A. 8. Council will consider the findings and recommendations provided in the report and, in conjunction with public input, approve such policies and rates it deems appropriate. These directions will refine the draft D.C. by-law which is appended in Appendix E. These decisions may include: - adopting the charges and policies recommended herein; - considering additional exemptions to the by-law; and - considering reductions in the charge by class of development (e.g., obtained by removing certain services on which the charge is based and/or by a general reduction in the charge). Development Charge Background Study Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Chapter 1 Introduction Watson & Associates Economists Ltd. PAGE 1-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 1. Introduction 1.1 Purpose of this Document This background study has been prepared pursuant to the requirements of the Development Charges Act 1997 (s.10), and accordingly, recommends new Development Charges (D.C.s) and policies for the Municipality of South Dundas (Municipality). The Municipality retained Watson & Associates Economists Ltd. (Watson) to undertake the D.C. study process. Watson worked with senior staff of the Municipality in preparing this D.C. analysis and the policy recommendations. This D.C. background study, containing the proposed D.C. by-law, will be distributed to members of the public in order to provide interested parties with sufficient background information on the legislation, the study's recommendations, and an outline of the basis for these recommendations. This report has been prepared, in the first instance, to meet the statutory requirements applicable to the Municipality's D.C. background study, as summarized in Chapter 4. It also addresses the forecast amount, type, and location of growth (Chapter 3), the requirement for "rules" governing the imposition of the charges (Chapter 7), and the proposed by-law to be made available as part of the approval process (Appendix E). In addition, the report is designed to set out sufficient background on the legislation and the policies underlying the proposed by-law, to make the exercise understandable to interested parties. Finally, the D.C. background study addresses post-adoption implementation requirements (Chapter 9) which are critical to the successful application of the new policy. The chapters in the report are supported by appendices containing the data required to explain and substantiate the calculation of the charge. A full discussion of the statutory requirements for the preparation of a background study and calculation of a D.C. is provided herein. Watson & Associates Economists Ltd. PAGE 1-2 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 1.2 Summary of the Process A public meeting required under Section 12 of the D.C.A. has been scheduled for May 20, 2025, at least two weeks after the posting of the D.C. background study and draft D.C. by-law on the Municipality's website. Its purpose is to present the background study and draft D.C. by-law to the public and to solicit public input on the matter. The public meeting is also being held to answer any questions regarding the study's purpose, methodology and the proposed D.C. by-law for the Municipality. In accordance with the legislation, the background study and proposed D.C. by-law will be available for public review at least 60 days prior to by-law passage. The process to be followed in finalizing the report and recommendations includes: - consideration of responses received prior to, at or immediately following the public meeting; and - finalization of the report and Council consideration of the by-law subsequent to the public meeting. Table 1-1 outlines the study process to date and the proposed schedule to be followed with respect to the D.C. by-law adoption process. Table 1-1 Schedule of Key D.C. Process Dates Process Steps Dates 1. Project initiation meeting with staff September 4, 2025 2. Data collection, staff interviews, and review of draft findings with Municipality staff September 2024 to March 2025 3. D.C. Background Study and draft D.C. by-law available to public By May 2, 2025 4. Public Meeting of Council May 20, 2025 5. D.C. By-law passage (anticipated) July 16, 2025 Watson & Associates Economists Ltd. PAGE 1-3 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Process Steps Dates 6. D.C. By-Law effective date July 16, 2025 7. Newspaper notice given of by-law passage By 20 days after passage 8. Last day for by-law appeal 40 days after passage 9. Municipality makes available D.C. pamphlet by 60 days after in force date 1.3 Changes to the Development Charges Act, 1997 Since 2020, a number of changes to the Development Charges Act, 1997 have been introduced through various legislation including the following: - Covid-19 Economic Recovery Act, 2020 (Bill 197); - Better for People, Smarter for Business Act, 2020 (Bill 213); - More Homes for Everyone Act, 2022 (Bill 109); - More Homes Built Fast Act, 2022 (Bill 23); - Helping Homebuyers, Protecting Tenants Act, 2023 (Bill 97); - Affordable Homes and Good Jobs Act, 2023 (Bill 134); and - Cutting Red Tape to Build More Homes Act, 2024 (Bill 185). The following provides an overview of the changes to the D.C.A. that each of these pieces of legislation provided. 1.3.1 COVID-19 Economic Recovery Act, 2020 (Bill 197) In early 2020, the Province released Bill 197 (COVID-19 Economic Recovery Act), an omnibus bill amending numerous statutes, including the D.C.A. and Planning Act. This Bill also revised some of the proposed amendments included in the More Homes, More Choice Act. The COVID-19 Economic Recovery Act received Royal Assent on July 21, Watson & Associates Economists Ltd. PAGE 1-4 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 2020 and was proclaimed on September 18, 2020. The following provides a summary of the additional changes to the D.C.A. that are now in effect: List of D.C. Eligible Services The D.C.A. previously defined ineligible services for D.C.s. The amendments to the D.C.A. now defined the services that are eligible for inclusion in a D.C. by-law. The following summarizes the D.C. eligible services: - Water supply services, including distribution and treatment services; - Wastewater services, including sewers and treatment services; - Storm water drainage and control services; - Services related to a highway; - Electrical power services; - Toronto-York subway extension, as defined in subsection 5.1 (1); - Transit services other than the Toronto-York subway extension; - Waste diversion services; - Policing services; - Fire protection services; - Ambulance services; - Library Services; - Long-term care services; - Parks and recreation services (excluding the acquisition of land for parks); - Public health services; - Childcare and early years services; - Housing services; - Provincial Offences Act services; - Services related to emergency preparedness; - Services related to airports, but only in the Regional Municipality of Waterloo; and - Additional services as prescribed. Removal of 10% Statutory Deduction The D.C.A. previously required a 10% statutory deduction for all services not specifically identified in s.s. 5 (5) of the D.C.A. (i.e. soft services). This had the effect of Watson & Associates Economists Ltd. PAGE 1-5 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx categorizing D.C. eligible services into two groups, i.e. 90% D.C. recoverable services, and 100% D.C. recoverable services. The amendments to the D.C.A. remove the 10% statutory deduction for soft services. Classes of D.C. Services As noted above the D.C.A. categorized services generally into two categories. The amended D.C.A. repeals these provisions and provides the following: - A D.C. by-law may provide for any eligible service or capital cost related to any eligible service to be included in a class, set out in the by-law. - A class may be composed of any number or combination of services and may include parts or portions of the eligible services or parts or portions of the capital costs in respect of those services. - A D.C. by-law may provide for a class consisting of studies in respect of any eligible service whose capital costs are described in paragraphs 5 and 6 of s. 5 of the D.C.A. - A class of service set out in the D.C. by-law is deemed to be a single service with respect to reserve funds, use of monies, and credits. Statutory Exemptions The D.C.A. provides for statutory exemptions from payment of D.C.s where the development is creating additional residential dwelling units within prescribed classes of existing residential buildings or structures. This statutory exemption has been expanded to include secondary residential dwelling units, in prescribed classes, that are ancillary to existing residential buildings. Furthermore, additional statutory exemptions are provided for the creation of a second dwelling unit in prescribed classes of proposed new residential buildings, including structures ancillary to new dwellings. Transition Services, other than those described in paragraphs 1 to 10 of subsection 2 (4) of the D.C.A. (i.e. soft services) within an existing D.C. by-law can remain in effect, even if the by-law expires, until the earlier of the day the by-law is repealed, the day the municipality passes a Community Benefits Charge by-law under subsection 37 (2) of the Planning Act, or the specified date. The specified date is September 18, 2022. Watson & Associates Economists Ltd. PAGE 1-6 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 1.3.2 Better for People, Smarter for Business Act, 2020, (Bill 213) The Better for People, Smarter for Business Act (Bill 213) received Royal Assent on December 8, 2020. Bill 213 was introduced to reduce burdens on people and businesses by enacting, amending and repealing various Acts and revoking a regulation. Schedule 10 of the Bill 213 amends the Ministry of Training, Colleges and Universities Act R.S.O 1990 to provide for a statutory exemption to the payment of D.C.s. for Land vested in or leased to a university that receives regular and ongoing operating funds from the government for the purposes of post-secondary education and if the proposed development in respect of which development charges would otherwise be payable is intended to be occupied and used by the university. 1.3.3 More Homes for Everyone Act, 2022 (Bill 109) On April 14, 2022, Bill 109 received Royal Assent. One of the changes of the Bill and Ontario Regulation (O. Reg.) 438/22 that took effect upon Royal Assent included amending the D.C.A. and O. Reg. 82/98 related to the requirements for the information which is to be included in the annual Treasurer's statement on D.C. reserve funds and the requirement for publication of the statement. The following additional information must be provided for each D.C. service being collected for during the year: a) whether, as of the end of the year, the municipality expects to incur the amount of capital costs that were estimated, in the relevant development charge background study, to be incurred during the term of the applicable development charge by-law; b) if the answer to a) is no, the amount the municipality now expects to incur and a statement as to why this amount is expected; and c) if no money was spent from the reserve fund during the year, a statement as to why there was no spending during the year. The changes to the D.C.A. has also been amended to now require that the annual Treasurer's statement be made available to the public on the website of the municipality or, if there is no such website, in the municipal office. 1.3.4 More Homes Built Fast Act, 2022 (Bill 23) On November 28, 2022, Bill 23 received Royal Assent. This Act amends a number of pieces of legislation including the Planning Act and the D.C.A. Subsequently the Watson & Associates Economists Ltd. PAGE 1-7 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx additional residential unit exemptions were amended through Bill 97 and exemptions for affordable units were further amended through Bill 134. The following provides a summary of the changes to the D.C.A.: 1.3.4.1 Additional Residential Unit Exemption The rules for these exemptions are now provided in the D.C.A., rather than the regulations and are summarized as follows: - Exemption for residential units in existing rental residential buildings - For rental residential buildings with four or more residential units, the greater of one unit or 1% of the existing residential units will be exempt from D.C. - Exemption for additional residential units in existing and new residential buildings - The following developments will be exempt from a D.C.: o A second unit in a detached, semi-detached, or rowhouse if all buildings and ancillary structures cumulatively contain no more than one residential unit; o A third unit in a detached, semi-detached, or rowhouse if no ancillary buildings or structures contain any residential units; and o One residential unit in a building or structure ancillary to a detached, semi- detached, or rowhouse on a parcel of land, if the detached, semi- detached, or rowhouse contains no more than two residential units and no other buildings or ancillary structures contain any residential units. o Bill 97 (The Helping Homebuyers, Protecting Tenants Act), extended the mandatory exemption from payment of D.C.s for addition residential units new residential buildings or in existing houses to all lands versus just urban lands. 1.3.4.2 Removal of Housing as an Eligible D.C. Service Housing services is removed as an eligible service. Municipalities with by-laws that include a charge for housing services can no longer collect for this service. 1.3.4.3 New Statutory Exemptions for Affordable Units, Attainable Units, and Inclusionary Zoning Units Affordable units, attainable units, inclusionary zoning units and non-profit housing developments will be exempt from the payment of D.C.s, as follows: Watson & Associates Economists Ltd. PAGE 1-8 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx - Affordable Rental Units: o The rent is no greater than the lesser of, o the income-based affordable rent for the residential unit set out in the Affordable Residential Units bulletin, as identified by the Minister of Municipal Affairs and Housing in accordance with subsection (5), and o the average market rent identified for the residential unit set out in the Affordable Residential Units bulletin. - Affordable Owned Units: o The price of the residential unit is no greater than the lesser of,  the income-based affordable purchase price for the residential unit set out in the Affordable Residential Units bulletin, as identified by the Minister of Municipal Affairs and Housing in accordance with subsection (6), and  90 per cent of the average purchase price identified for the residential unit set out in the Affordable Residential Units bulletin. - Attainable Units: Excludes affordable units and rental units; will be defined as prescribed development or class of development and sold to a person who is at "arm's length" from the seller. o Note: for affordable and attainable units, the municipality shall enter into an agreement that ensures the unit remains affordable or attainable for 25 years. Also exemptions for affordable and attainable units will come into effect on a day to be named by proclamation of the Lieutenant Governor. - Inclusionary Zoning Units: Affordable housing units required under inclusionary zoning by-laws are exempt from a D.C. 1.3.4.4 New Statutory Exemption for Non-Profit Housing Non-profit housing development has been removed from the instalment payment section of the Act (section 26.1), as these units are now exempt from the payment of D.C.s. 1.3.4.5 Rental Housing Discount The D.C. payable for rental housing development will be reduced based on the number of bedrooms in each unit as follows: - Three or more bedrooms - 25% reduction; Watson & Associates Economists Ltd. PAGE 1-9 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx - Two bedrooms - 20% reduction; and - All other bedroom quantities - 15% reduction. 1.3.4.6 Historical Level of Service extended to 15-year period instead of the historical 10-year period Prior to Royal Assent of Bill 23, the increase in need for service was limited by the average historical level of service calculated over the 10-year period preceding the preparation of the D.C. background study. This average historical level of service is now extended to the historical 15-year period. 1.3.4.7 Revised Definition of Capital Costs The definition of capital costs has been revised to remove studies. Further, the regulations to the Act will prescribe services for which land or an interest in land will be restricted. As at the time of writing, no services have been prescribed for this purpose. 1.3.4.8 Mandatory Phase-in of a D.C. For all D.C. by-laws passed after January 1, 2022, the charge must be phased-in annually over the first five years the by-law is in force, as follows: - Year 1 - 80% of the maximum charge; - Year 2 - 85% of the maximum charge; - Year 3 - 90% of the maximum charge; - Year 4 - 95% of the maximum charge; and - Year 5 to expiry - 100% of the maximum charge. 1.3.4.9 D.C. By-law Expiry A D.C. by-law now expires ten years after the day it comes into force (unless the by-law provides for an earlier expiry date). This extends the by-law's maximum life from what was previously five years. Watson & Associates Economists Ltd. PAGE 1-10 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 1.3.4.10 Maximum Interest Rate for Instalments and Determination of Charge for Eligible Site Plan and Zoning By-law Amendment Applications The Act allows interest to be charged on D.C.s calculated at the time of Site Plan or Zoning By-law Amendment applications (S.26.2 of the Act) and for mandatory installment payments (S. 26.1 of the Act). No maximum interest rate was previously prescribed, which allowed municipalities to choose the interest rate to impose. As per Bill 23, the maximum interest rate is set at the average prime rate plus 1%. This maximum interest rate provision would apply to all instalment payments and eligible site plan and zoning by-law amendment applications occurring after November 28, 2022. 1.3.4.11 Requirement to Allocate Funds Received Annually, beginning in 2023, municipalities will be required to spend or allocate at least 60% of the monies in a reserve fund at the beginning of the year for water services, wastewater services, and services related to a highway. Other services may be prescribed by the regulation. 1.3.5 Cutting Red Tape to Build More Homes Act, 2024 (Bill 185) On June, 6, 2024, Bill 185 received Royal Assent and includes the following changes to the D.C.A. - The removal of the Mandatory Phase-in for D.C. by-laws passed after Bill 185 comes into effect; - A reduction to the D.C. rate freeze timelines for developments proceeding though site plan and zoning by-law amendment applications under the Planning Act. Charges are currently held at rates in place on the date the application is made until building permit issuance, provided the building permit is issued within two (2) years of the approval of the application. This time period is proposed to be reduced to 18 months under Bill 185 (note that the two (2) year timeline will still apply to applications received prior to Bill 185 receiving Royal Assent); - Inclusion of growth-related studies, including the D.C. background study, as a D.C.-eligible costs; - Provide a provision of the D.C. by-law specifying the date the by-law expires or to amend the provision to extend the expiry date; Watson & Associates Economists Ltd. PAGE 1-11 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx - To allow minor amendments related to the imposition of studies, removal of the mandatory phase-in, and extension of by-law expiry dates (subject to the 10-year limitations provided in the D.C.A.) to be undertaken for by-laws passed after November 28, 2022 and before Bill 185 takes effect; and To modernize public notice requirements Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Chapter 2 Current Municipality D.C. Policy Watson & Associates Economists Ltd. PAGE 2-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 2. Current Municipality D.C. Policy 2.1 Background The Municipality does not currently recover for the growth-related capital costs of new development through D.C.s. However, the Municipality does impose charges on new connections to the municipal water and wastewater systems under the authority of the Municipal Act. It is anticipated that the Municipality will continue to impose these Municipal Act charges Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Chapter 3 Anticipated Development in the Municipality Watson & Associates Economists Ltd. PAGE 3-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 3. Anticipated Development in the Municipality 3.1 Requirement of the Act The growth forecast contained in this chapter (with supplemental tables in Appendix A) provides for the anticipated development for which the Municipality will be required to provide services over a 10-year (2025 to 2035) time horizon. Chapter 4 provides the methodology for calculating a D.C. as per the D.C.A. Figure 4-1 presents this methodology graphically. It is noted in the first box of the schematic that in order to determine the D.C. that may be imposed, it is a requirement of subsection 5 (1) of the D.C.A. that "the anticipated amount, type and location of development, for which development charges can be imposed, must be estimated." 3.2 Basis of Population, Household and Non-Residential Gross Floor Area Forecast The D.C. growth forecast has been derived by Watson in consultation with the Municipality of South Dundas. In preparing the growth forecast, the following information sources were consulted to assess the residential and non-residential development potential for the Municipality over the forecast period, including: - The United Counties Stormont, Dundas and Glengarry Growth Management Strategy Draft Report, September 6, 2023, by Watson & Associates Economists Ltd.; - United Counties of Stormont, Dundas and Glengarry Official Plan, February 2025 Consolidation; - 2011, 2016 and 2021 population, household and employment Census data; - Historical residential building permit data over the 2015 to 2024 period; - Residential and non-residential supply opportunities as identified by Municipality of South Dundas staff; and - Discussions with Municipal staff regarding anticipated residential and non- residential development in the Municipality of South Dundas. Watson & Associates Economists Ltd. PAGE 3-2 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 3.3 Summary of Growth Forecast A detailed analysis of the residential and non-residential growth forecasts is provided in Appendix A and the methodology employed is illustrated in Figure 3-1. The discussion provided herein summarizes the anticipated growth for the Municipality and describes the basis for the forecast. The results of the residential growth forecast analysis are summarized in Table 3-1 below, and Schedule 1 in Appendix A. As identified in Table 3-1 and Appendix A - Schedule 1, population in the Municipality of South Dundas (excluding census undercount) is anticipated to reach approximately 12,120 by early-2035, resulting in an increase of approximately 510 persons. [1] Figure 3-1 Population and Household Forecast Model [1] The population figures used in the calculation of the 2025 D.C. exclude the net Census undercount, which is estimated at approximately 3.5%. Population figures presented herein have been rounded. Intensification Designated Lands Servicing Capacity Residential Units in the Development Process Employment Market by Local Municipality, Economic Outlook Local, region and Provincial Forecast of Residential Units Decline in Existing Population Net Population Increase Historical Housing Construction DEMAND SUPPLY Occupancy Assumptions Gross Population Increase Watson & Associates Economists Ltd. PAGE 3-3 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table 3-1 Municipality of South Dundas Residential Growth Forecast Summary [1] Population includes the Census undercount estimated at approximately 3.5% and has been rounded. [2] Includes townhouses and apartments in duplexes. [3] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units. Notes: Numbers may not add due to rounding. Source: Derived from The United Counties Stormont, Dundas and Glengarry Growth Management Strategy Draft Report, September 6, 2023, by Watson & Associates Economists Ltd. Population Institutional Population Population Excluding Institutional Population Singles & Semi- Detached Multiple Dwellings [2] Apartments [3] Other Total Households Equivalent Institutional Households 11,170 10,794 149 10,645 3,839 258 244 101 4,442 135 2.430 11,210 10,833 138 10,695 3,930 240 265 110 4,545 125 2.383 11,430 11,044 99 10,945 4,050 250 280 70 4,650 90 2.375 12,010 11,610 104 11,506 4,250 253 319 70 4,892 95 2.373 12,540 12,122 110 12,012 4,413 289 374 70 5,146 100 2.356 40 39 -11 50 91 -18 21 9 103 -10 220 211 -39 250 120 10 15 -40 105 -35 580 566 5 561 200 3 39 0 242 5 530 512 6 506 163 36 55 0 254 5 Forecast Incremental Mid 2011 - Mid 2016 Mid 2016 - Mid 2021 Mid 2011 Mid 2016 Mid 2021 Early 2025 Early 2035 Mid 2021 - Early 2025 Early 2025 - Early 2035 Population (Including Census Undercount) [1] Year Excluding Census Undercount Housing Units Person Per Unit (P.P.U.): Total Population/ Total Households Historical Watson & Associates Economists Ltd. PAGE 3-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Provided below is a summary of the key assumptions and findings regarding the Municipality of South Dundas D.C. growth forecast: 1. Unit Mix (Appendix A - Schedules 1 and 5) - The housing unit mix for the Municipality was derived from a detailed review of historical development activity (as per Schedule 5), as well as active residential development applications and discussions with Municipal staff regarding anticipated development trends for the Municipality of South Dundas. - Based on the above indicators, the 2025 to 2035 household growth forecast for the Municipality is comprised of a unit mix of 64% low density units (single detached and semi-detached), 14% medium density (multiples except apartments) and 22% high density (bachelor, 1-bedroom and 2-bedroom apartments). 2. Geographic Location of Residential Development (Appendix A - Schedule 2) - Schedule 2 summarizes the anticipated amount, type, and location of development by area for the Municipality of South Dundas - In accordance with forecast demand and available land supply, the amount and percentage of forecast housing growth between 2025 and 2035 by development location is summarized below. Watson & Associates Economists Ltd. PAGE 3-2 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table 3-2 Municipality of South Dundas Geographic Location of Residential Development Development Location Amount of Housing Growth, 2025 to 2035 Percentage of Housing Growth, 2025 to 2035 Morrisburg 115 45% Williamsburg 25 9% Iroquois 95 38% Rural 20 8% Municipality of South Dundas 255 100% Note: Figures may not sum precisely due to rounding. Planning Period - Short- and longer-term time horizons are required for the D.C. process. The D.C.A. limits the planning horizon for transit services to a 10-year planning horizon. All other services can utilize a longer planning period if the municipality has identified the growth-related capital infrastructure needs associated with the longer-term growth planning period. 3. Population in New Units (Appendix A - Schedules 3 and 4) - The number of housing units to be constructed by 2035 in the Municipality of South Dundas over the forecast period is presented in Table 3-1. Over the 2025 to 2035 forecast period, the Municipality is anticipated to average approximately 25 new housing units per year. - Institutional population [1] is anticipated to increase by approximately 10 people between 2025 to 2035. [1] Institutional population largely includes special care facilities such as nursing home or residences for senior citizens. A P.P.U. of 1.100 depicts 1-bedroom and 2-or-more- bedroom units in collective households. Watson & Associates Economists Ltd. PAGE 3-3 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx - Population in new units is derived from Schedules 3 and 4, which incorporate historical development activity, anticipated units (see unit mix discussion) and average persons per unit (P.P.U.) by dwelling type for new units. - Schedule 6a summarizes the average P.P.U. assumed for new housing units by age and type of dwelling based on Statistics Canada 2021 custom Census data for the Municipality of South Dundas. Due to data limitation medium and high density P.P.U. data was derived from the United Counties of Stormont, Dundas and Glengarry which includes the Municipality of South Dundas, and is outlined in Schedule 6b . The total calculated P.P.U. for all density types has been adjusted accordingly to account for the P.P.U. trends which has been recently experienced in both new and older units. Forecasted 15-year average P.P.U.s by dwelling type are as follows: o Low density: 2.565 o Medium density: 2.110 o High density: 1.614 4. Existing Units and Population Change (Appendix A - Schedules 3 and 4) - Existing households for early-2025 are based on the 2021 Census households, plus estimated residential units constructed between mid- 2021 to the beginning of the growth period, assuming a minimum six- month lag between construction and occupancy (see Schedule 3). - The change in average occupancy levels for existing housing units is calculated in Schedules 3 and 4.[1] The forecast population change in existing households over the 2025 to 2035 forecast period is forecast to decline by approximately 80. 5. Employment (Appendix A - Schedules 8a, 8b and 8c) - The employment projections provided herein are largely based on the activity rate method, which is defined as the number of jobs in the [1] Change in occupancy levels for existing households occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. Watson & Associates Economists Ltd. PAGE 3-4 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Municipality divided by the number of residents. Key employment sectors include primary, industrial, commercial/population-related, institutional, and work at home, which are considered individually below. - 2016 employment data [1],[2] (place of work) for the Municipality of South Dundas is outlined in Schedule 8a. The 2016 employment base is comprised of the following sectors: o 75 primary (2%); o 515 work at home employment (17%); o 890 industrial (29%); o 1,155 commercial/population-related (37%); and o 475 institutional (15%). - The 2016 employment by usual place of work, including work at home, is 3,110. An additional 460 employees have been identified for the Municipality of South Dundas in 2016 that have no fixed place of work (N.F.P.O.W.).[3] - Total employment, including work at home and N.F.P.O.W. for the Municipality of South Dundas is anticipated to reach approximately 4,080 by early-2035. This represents an employment increase of approximately 320 for the 10-year forecast period. - Schedule 8b, Appendix A, summarizes the employment forecast, excluding work at home employment and N.F.P.O.W. employment, which is the basis for the D.C. employment forecast. The impact on municipal services from work at home employees has already been included in the population forecast. The need for municipal services related to N.F.P.O.W. employees has largely been included in the employment forecast by usual place of work (i.e., employment and gross floor area generated from N.F.P.O.W. construction employment). Furthermore, [1] 2016 employment is based on Statistics Canada 2016 Place of Work Employment dataset by Watson & Associates Economists Ltd. [2] Statistics Canada 2021 Census place of work employment data has been reviewed. The 2021 Census employment results have not been utilized due to a significant increase in work at home employment captured due to Census enumeration occurring during the provincial COVID-19 lockdown from April 1, 2021 to June 14, 2021. [2] No fixed place of work is defined by Statistics Canada as "persons who do not go from home to the same workplace location at the beginning of each shift. Such persons include building and landscape contractors, travelling salespersons, independent truck drivers, etc." Watson & Associates Economists Ltd. PAGE 3-5 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx since these employees have no fixed work address, they cannot be captured in the non-residential G.F.A. calculation. Accordingly, work at home and N.F.P.O.W. employees have been removed from the D.C.A. employment forecast and calculation. - Total employment for the Municipality of South Dundas (excluding work at home and N.F.P.O.W. employment) is anticipated to reach approximately 3,890 by early-2035. This represents an employment increase of approximately 200 for the 10-year forecast period. 6. Non-Residential Sq.ft. Estimates (G.F.A.), Appendix A - Schedule 8b) - Square footage estimates were calculated in Schedule 8b based on the following employee density assumptions: o 3,000 sq.ft. per employee for primary; o 1,400 sq.ft. per employee for industrial; o 500 sq.ft. per employee for commercial/population-related; and o 700 sq.ft. per employee for institutional employment. - The Municipal-wide incremental G.F.A. is anticipated to increase by 211,100 sq.ft. over the 10-year forecast period. - In terms of percentage growth, the 2025 to 2035 incremental G.F.A. forecast by sector is broken down as follows: o Primary - 14% o industrial - 55%; o commercial/population-related - 15%; and o institutional - 16%. 7. Geographic Location of Non-Residential Development (Appendix A, Schedule 8c) - Schedule 8c summarizes the anticipated amount, type and location of non-residential development by area for the Municipality of South Dundas. - The amount and percentage of forecast total non-residential growth between 2025 and 2035 by development location is summarized below. Watson & Associates Economists Ltd. PAGE 3-6 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table 3-3 Municipality of South Dundas Geographic Location of Non-Residential Development Development Location Amount of Non- Residential G.F.A. (sq.ft.), 2025 to 2035 Percentage of Non- Residential G.F.A., 2025 to 2035 Morrisburg 49,000 23% Williamsburg 34,700 17% Iroquois 97,600 46% Rural 29,800 14% Municipality of South Dundas 211,100 100% Note: Figures may not sum precisely due to rounding Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Chapter 4 The Approach to the Calculation of the Charge Watson & Associates Economists Ltd. PAGE 4-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 4. The Approach to the Calculation of the Charge 4.1 Introduction This chapter addresses the requirements of subsection 5 (1) of the D.C.A. with respect to the establishment of the need for service which underpins the D.C. calculation. These requirements are illustrated schematically in Figure 4-1. 4.2 Services Potentially Involved Table 4-2 lists the full range of municipal services that are provided by the Municipality. A number of these services are not listed as eligible services for inclusion in a D.C. by- law as per subsection 2 (4) of the D.C.A. These are shown as "ineligible" on Table 4-2. Two ineligible costs defined in subsection 5 (3) of the D.C.A. are "computer equipment" and "rolling stock with an estimated useful life of (less than) seven years." In addition, local roads are covered separately under subdivision agreements and related means (as are other local services). Services which are potentially eligible for inclusion in the Municipality's D.C. are indicated with a "Yes." 4.3 Increase in the Need for Service The D.C. calculation commences with an estimate of "the increase in the need for service attributable to the anticipated development," for each service to be covered by the by-law. There must be some form of link or attribution between the anticipated development and the estimated increase in the need for service. While the need could conceivably be expressed generally in terms of units of capacity, subsection 5 (1) 3, which requires that Council indicate that it intends to ensure that such an increase in need will be met, suggests that a project-specific expression of need would be most appropriate. Watson & Associates Economists Ltd. PAGE 4-2 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Figure 4-1 The Process of Calculating a Development Charge under the Act that must be followed Watson & Associates Economists Ltd. PAGE 4-3 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table 4-1 Categories of Municipal Services to be Addressed as Part of the Calculation - Eligibility Legend Eligibility for Inclusion in the D.C. Calculation Description Yes Municipality provides the service - service has been included in the D.C. calculation. No Municipality provides the service - service has not been included in the D.C. calculation. n/a Municipality does not provide the service. Ineligible Service is ineligible for inclusion in the D.C. calculation. Table 4-2 Categories of Municipal Services to be Addressed as Part of the Calculation Categories of Municipal Services Inclusion in the D.C. Calculation Service Components 1. Water supply services, including distribution and treatment services No No No No 1.1 Treatment plants 1.2 Distribution systems 1.3 Local systems 1.4 Vehicles and equipment1 2. Wastewater services, including sewers and treatment services No No No No 2.1 Treatment plants 2.2 Sewage trunks 2.3 Local systems 2.4 Vehicles and equipment1 3. Stormwater Drainage and Control Services No No No 3.1 Main channels and drainage trunks 3.2 Channel connections 3.3 Retention/detention ponds 1 with a 7+ year useful life Watson & Associates Economists Ltd. PAGE 4-4 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Categories of Municipal Services Inclusion in the D.C. Calculation Service Components 4. Services Related to a Highway Yes Yes Yes No Yes Yes Yes Yes Yes 4.1 Arterial roads 4.2 Collector roads 4.3 Bridges, Culverts and Roundabouts 4.4 Local municipal roads 4.5 Traffic signals 4.6 Sidewalks and streetlights 4.7 Active Transportation 4.8 Works Yard 4.9 Rolling stock1 5. Electrical Power Services n/a n/a n/a 5.1 Electrical substations 5.2 Electrical distribution system 5.3 Electrical system rolling stock1 6. Transit Services n/a n/a 6.1 Transit vehicles1 & facilities 6.2 Other transit infrastructure 7. Waste Diversion Services No No 7.1 Waste diversion facilities 7.2 Waste diversion vehicles and equipment1 8. Policing Services n/a n/a n/a 8.1 Police detachments 8.2 Police rolling stock1 8.3 Small equipment and gear 9. Fire Protection Services Yes Yes Yes 9.1 Fire stations 9.2 Fire Vehicles1 9.3 Fire Equipment and gear 10. Ambulance Services n/a 10.1 Ambulance station space 10.2 Vehicles1 11. Services provided by a board within the meaning of the Public Libraries Act No n/a n/a 11.1 Public library space (excl. furniture and equipment) 11.2 Library vehicles1 11.3 Library materials 12. Services Related to Long- Term Care n/a n/a 12.1 Long-Term Care space 12.2 Vehicles1 1 with a 7+ year useful life Watson & Associates Economists Ltd. PAGE 4-5 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Categories of Municipal Services Inclusion in the D.C. Calculation Service Components 13. Parks and Recreation Services Ineligible Yes Yes Yes Yes 13.1 Acquisition of land for parks, woodlots and E.S.A.s 13.2 Development of municipal parks 13.3 Parks rolling stock1 and yards 13.4 Facilities, such as arenas, indoor pools, fitness facilities, community centres, etc. 13.5 Recreation vehicles and equipment1 14. Services Related to Public Health n/a n/a 14.1 Public Health department space 14.2 Public Health department vehicles1 15. Child Care and Early Years Programs and Services within the meaning of Part VI of the Child Care and Early Years Act, 2014 and any related services. n/a n/a 15.1 Childcare space 15.2 Vehicles1 16. Services related to proceedings under the Provincial Offences Act, including by-law enforcement services and municipally administered court services n/a n/a 16.1 P.O.A. space, including by-law enforcement and municipally administered court services 16.2 Vehicles1 17. Services Related to Emergency Preparedness No No 17.1 Emergency Preparedness Space 17.2 Equipment 18. Services Related to Airports n/a Ineligible 18.1 Airports (in the Regional Municipality of Waterloo) 18.2 Other Airports 1 with a 7+ year useful life Watson & Associates Economists Ltd. PAGE 4-6 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Categories of Municipal Services Inclusion in the D.C. Calculation Service Components 19. Other Yes 19.1 Interest on money borrowed to pay for growth-related capital 19.2 Studies in connection with acquiring buildings, rolling stock, materials and equipment, and improving land [2] and facilities, including the D.C. background study cost [2] same percentage as service component to which it pertains 4.4 Local Service Policy Some of the need for services generated by additional development consists of local services related to a plan of subdivision. As such, they will be required as a condition of subdivision agreements or consent conditions. See appendix D. 4.5 Capital Forecast Paragraph 7 of subsection 5 (1) of the D.C.A. requires that "the capital costs necessary to provide the increased services must be estimated." The Act goes on to require potential cost reductions and the regulation sets out the way in which such costs are to be presented. These requirements are outlined below. These estimates involve capital costing of the increased services discussed above. This entails costing actual projects or the provision of service units, depending on how each service has been addressed. The capital costs include: a) costs to acquire land or an interest therein (including a leasehold interest); b) costs to improve land; c) costs to acquire, lease, construct or improve buildings and structures; d) costs to acquire, lease or improve facilities, including rolling stock (with a useful life of 7 or more years), furniture and equipment (other than computer Watson & Associates Economists Ltd. PAGE 4-7 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx equipment), materials acquired for library circulation, reference, or information purposes; e) interest on money borrowed to pay for the above-referenced costs; f) costs to undertake studies in connection with the above-referenced matters; and g) costs of the D.C. background study. In order for an increase in need for service to be included in the D.C. calculation, municipal Council must indicate "that it intends to ensure that such an increase in need will be met" (subsection 5 (1) 3). This can be done if the increase in service forms part of a Council-approved Official Plan, capital forecast, or similar expression of the intention of Council (O. Reg. 82/98 section 3). The capital program contained herein reflects the Municipality 's approved and proposed capital budgets and master servicing/needs studies. 4.6 Treatment of Credits Section 8, paragraph 5, of O. Reg. 82/98 indicates that a D.C. background study must set out "the estimated value of credits that are being carried forward relating to the service." Subsection 17, paragraph 4, of the same regulation indicates that, "...the value of the credit cannot be recovered from future D.C.s," if the credit pertains to an ineligible service. This implies that a credit for eligible services can be recovered from future D.C.s. As a result, this provision should be made in the calculation, in order to avoid a funding shortfall with respect to future service needs. 4.7 Eligible Debt and Committed Excess Capacity Section 66 of the D.C.A. states that for the purposes of developing a D.C. by-law, a debt incurred with respect to an eligible service may be included as a capital cost, subject to any limitations or reductions in the Act. Similarly, s.18 of O. Reg. 82/98 indicates that debt with respect to an ineligible service may be included as a capital cost, subject to several restrictions. In order for such costs to be eligible, two conditions must apply. First, they must have funded excess capacity which is able to meet service needs attributable to the anticipated development. Second, the excess capacity must be "committed," that is, either before or at the time it was created, Council must have expressed a clear Watson & Associates Economists Ltd. PAGE 4-8 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx intention that it would be paid for by D.C.s or other similar charges. For example, this may have been done as part of previous D.C. processes. 4.8 Existing Reserve Funds Section 35 of the D.C.A. states that: "The money in a reserve fund established for a service may be spent only for capital costs determined under paragraphs 2 to 8 of subsection 5(1)." There is no explicit requirement under the D.C.A. calculation method set out in s.s.5(1) to net the outstanding reserve fund balance as part of making the D.C. calculation; however, s.35 does restrict the way in which the funds are used in future. The Municipality does not currently have any existing D.C. reserve funds. 4.9 Deductions The D.C.A. potentially requires that four deductions be made to the increase in the need for service. These relate to: - the level of service ceiling; - uncommitted excess capacity; - benefit to existing development; and - anticipated grants, subsidies, and other contributions. The requirements behind each of these reductions are addressed as follows: 4.9.1 Reduction Required by Level of Service Ceiling This is designed to ensure that the increase in need included in 4.3 does "...not include an increase that would result in the level of service (for the additional development increment) exceeding the average level of the service provided in the Municipality over the 15-year period immediately preceding the preparation of the background study..." O. Reg. 82.98 (s.4) goes further to indicate that, "...both the quantity and quality of a service shall be taken into account in determining the level of service and the average level of service." Watson & Associates Economists Ltd. PAGE 4-9 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx In many cases, this can be done by establishing a quantity measure in terms of units as floor area, land area or road length per capita, and a quality measure in terms of the average cost of providing such units based on replacement costs, engineering standards or recognized performance measurement systems, depending on circumstances. When the quantity and quality factors are multiplied together, they produce a measure of the level of service which meets the requirements of the Act, i.e., cost per unit. The average service level calculation sheets for each service component in the D.C. calculation are set out in Appendix B. 4.9.2 Reduction for Uncommitted Excess Capacity Paragraph 5 of subsection 5 (1) requires a deduction from the increase in the need for service attributable to the anticipated development that can be met using the municipality's "excess capacity," other than excess capacity which is "committed." "Excess capacity" is undefined, but in this case must be able to meet some or all of the increase in need for service, in order to potentially represent a deduction. The deduction of uncommitted excess capacity from the future increase in the need for service would normally occur as part of the conceptual planning and feasibility work associated with justifying and sizing new facilities, e.g., if a road widening to accommodate increased traffic is not required because sufficient excess capacity is already available, then widening would not be included as an increase in need, in the first instance. 4.9.3 Reduction for Benefit to Existing Development Section 5 (1) 6 of the D.C.A. provides that, "The increase in the need for service must be reduced by the extent to which an increase in service to meet the increased need would benefit existing development." The general guidelines used to consider benefit to existing development included: - the repair or unexpanded replacement of existing assets that are in need of repair; - an increase in average service level of quantity or quality (compare water as an example); - the elimination of a chronic servicing problem not created by growth; and Watson & Associates Economists Ltd. PAGE 4-10 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx - providing services where none previously existed (generally considered for water or wastewater services). This step involves a further reduction in the need by the extent to which such an increase in service would benefit existing development. The level of service cap in section 4.9.1 is related but is not the identical requirement. Sanitary, storm, and water trunks are highly localized to growth areas and can be more readily allocated in this regard than other services such as services related to a highway, which do not have a fixed service area. Where existing development has an adequate service level which will not be tangibly increased by an increase in service, no benefit would appear to be involved. For example, where expanding existing library facilities simply replicates what existing residents are receiving, they receive very limited (or no) benefit as a result. On the other hand, where a clear existing service problem is to be remedied, a deduction should be made accordingly. In the case of services such as recreation facilities, community parks, libraries, etc., the service is typically provided on a Municipal-wide system basis. For example, facilities of the same type may provide different services (i.e., leisure pool vs. competitive pool), different programs (i.e., hockey vs. figure skating), and different time availability for the same service (i.e., leisure skating available on Wednesdays in one arena and Thursdays in another). As a result, residents will travel to different facilities to access the services they want at the times they wish to use them, and facility location generally does not correlate directly with residence location. Even where it does, displacing users from an existing facility to a new facility frees up capacity for use by others and generally results in only a very limited benefit to existing development. Further, where an increase in demand is not met for a number of years, a negative service impact to existing development is involved for a portion of the planning period. 4.9.4 Reduction for Anticipated Grants, Subsidies and Other Contributions This step involves reducing the capital costs necessary to provide the increased services by capital grants, subsidies, and other contributions (including direct developer contributions required due to the local service policy) made or anticipated by Council and in accordance with various rules such as the attribution between the share related Watson & Associates Economists Ltd. PAGE 4-11 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx to new vs. existing development. That is, some grants and contributions may not specifically be applicable to growth or where Council targets fundraising as a measure to offset impacts on taxes (O. Reg. 82/98, section 6). 4.10 Municipal-Wide vs. Area Rating This step involves determining whether all the subject costs are to be recovered on a uniform Municipal-wide basis or whether some or all are to be recovered on an area- specific basis. Under the D.C.A., it is now mandatory to "consider" area-rating of services (providing charges for specific areas and services), however, it is not mandatory to implement area-rating. Further discussion is provided in section 7.3.8. 4.11 Allocation of Development This step involves relating the costs involved to anticipated development for each period under consideration and using allocations between residential and non-residential development and between one type of development and another, to arrive at a schedule of charges. Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Chapter 5 D.C.-Eligible Cost Analysis by Service Watson & Associates Economists Ltd. PAGE 5-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 5. D.C.-Eligible Cost Analysis by Service 5.1 Introduction This chapter outlines the basis for calculating eligible costs for the D.C.s to be applied on a uniform Municipality-wide basis. In each case, the required calculation process set out in subsection 5 (1) paragraphs 2 to 7 in the D.C.A. and described in Chapter 4 was followed in determining D.C. eligible costs. The nature of the capital projects and timing identified in this chapter reflects Council's current intention. Over time, however, Municipality projects and Council priorities change; and accordingly, Council's intentions may alter, and different capital projects (and timing) may be necessary to meet the need for services required by new growth. 5.2 Service Levels and 10-Year Capital Costs for D.C. Calculation This section evaluates the development-related capital requirements for select services over the 10-year planning period (early-2025 to early-2035). Each service is evaluated on two format sheets: the average historical 15-year level of service calculation (see Appendix B), which "caps" the D.C. amounts; and the infrastructure cost calculation, which determines the potential D.C. recoverable cost. 5.2.1 Fire Protection Services The Municipality currently provides Fire Protection Services through the use of three fire stations (12,300 sq.ft.), two storage buildings, three training buildings, 13 vehicles, and various pieces of equipment. This level of investment over the 15-year historical period results in an average per capita level of service of $1,767. When this historical level of investment is applied to the anticipated 10-year population growth of 506, a maximum D.C. eligible cost of $894,000 could be included in the calculation of the charge. To provide service to new development over the forecast period, $991,500 in gross capital costs have been identified, including a provision for additional facility space and a new ladder/aerial truck. After deducting $158,500 for the benefit to existing development, $833,000 is included in the calculation of the charge. Watson & Associates Economists Ltd. PAGE 5-2 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx These D.C. eligible costs are then attributed 71% to residential development and 29% to non-residential development based on the relationship of population to employment growth anticipated over the forecast period (i.e., 506 population and 204 employment). These growth-related projects and costs are detailed in Table 5-1. 5.2.2 Services Related to a Highway Services Related to a Highway are provided utilizing an inventory of 329 km of asphalt roads, 47 km of gravel roads, 38 bridges and culverts, 29.8 km of sidewalks, 886 streetlight and guide rails. The services are also managed through the use of 35,800 sq.ft. of facility space, and 29 vehicle and equipment items. This historical level of investment results in an average level of service of $15,614 per capita over the past 15- years. When applied against the anticipated population growth over the 10-year forecast period (i.e., 506 persons), this historical level of service results in a maximum D.C. eligible amount of $7.9 million that could be included in the calculation of the charge. The capital needs, which have been factored into the calculation of the charge over the forecast period, were determined through discussions with staff which include vehicle provisions for road and sidewalk plows based on their respective historical level of service and future road and sidewalk improvements. In total, $612,600 in gross capital costs of growth-related projects have been identified. $372,400 has been deducted as a benefit to existing development resulting in $240,200 of D.C. recoverable costs being included in the calculation of the charge. These D.C. eligible costs are then attributed 71% to residential development and 29% to non-residential development based on the relationship of population to employment growth anticipated over the forecast period (i.e., 506 population and 204 employment). These growth-related projects and costs are detailed in Table 5-2. 5.2.3 Parks and Recreation Services The Municipality currently provides Parks and Recreation Services through the utilization of 53 parkland amenities, 3.7 km of waterfront trails, and a fleet of 20 vehicle and equipment items. Recreation services are provided through 76,454 sq.ft. of facility space provided by the Municipality. This total historical level of investment results in an average level of service of $3,124 per capita over the past 15-years. When applied against the anticipated population growth over the forecast period (i.e., 506 persons), Watson & Associates Economists Ltd. PAGE 5-3 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx this historical level of investment results in a maximum D.C. eligible amount of $1.6 million that could be included in the calculation of the charge. To provide service to new development over the 10-year forecast period, $4.2 million in gross capital costs of growth-related projects have been identified. The majority of these costs related to projects identified in the 2022 Parks and Recreation Master Plan with the remaining costs coming from a provision for additional facility space. $77,900 has been deducted for the growth-related capital costs benefitting growth beyond the 10-year forecast period and $2.5 million has been deducted as a benefit to existing development. After deducting $2,100 to account for grants, subsidies, and other contributions, $1.6 million has been included in the calculation of the charge. These D.C.-eligible costs are then attributed 95% to residential development as they are the primary uses of Parks and Recreation Services. These growth-related projects and costs are detailed in Table 5-3. 5.2.4 Growth-Related Studies Section 7 of the D.C.A. states that a D.C. by-law may provide for any D.C. eligible service or the capital costs with respect to those services. Further, a class may be composed of any number or combination of services and may include parts or portions of each D.C. eligible services. With respect to growth-related studies, Section 7 (3) of the D.C.A. states that: For greater certainty, a development charge by-law may provide for a class consisting of studies in respect of any service listed in subsection 2 (4) whose capital costs are described in paragraphs 5 and 6 of subsection 5 (3). These provisions allow for services to be grouped together to create a class for the purposes of the D.C. by-law and D.C. reserve funds. The D.C. calculations and draft by-law provided herein include a class for growth-related studies. This class is comprised of the following municipal-wide services: - Fire Protection Services; - Services Related to a Highway; and - Parks and Recreation Services. Watson & Associates Economists Ltd. PAGE 5-4 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx The following provides a list of the studies that have been identified for the 2025 to 2035 forecast period: - Zoning By-law Update (2025); and - Development Charges Background Studies (2030 & 2035). For planning related studies, a deduction of 10% of the growth-related costs have been applied to recognize the extent to which the studies relate to non-D.C.-eligible services. Planning related studies and future D.C. background studies have been allocated to the services in the following manner: - Fire Protection Services - 30.6% - Services Related to a Highway - 8.8% - Parks and Recreation Services - 60.6% The total cost of these studies is $89,900 of which $9,900 is a benefit to existing development. A deduction of $5,000 has been made to recognize the portion of planning studies related to D.C. ineligible services, as mentioned above. After the deductions, $75,000 has been included in the calculation of the charge and is detailed in Table 5-4 below. The allocation of the net growth-related costs between residential and non-residential development is based on the residential and non-residential allocations for each service area and are presented in Table 5-5 below (i.e. 86% residential and 14% non- residential). Watson & Associates Economists Ltd. PAGE 5-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table 5-1 Infrastructure Costs Covered in the D.C. Calculation - Fire Protection Services Less: Potential D.C. Recoverable Cost Proj. No. Residential Share Non- Residential Share 2025 to 2035 71% 29% 1 Additional Facility Space Provision 2025-2035 389,000 - 389,000 - 389,000 276,190 112,810 2 Ladder/Aerial 2027 400,000 - 400,000 - 400,000 284,000 116,000 3 UTV and Trailer 2025-2035 60,000 - 60,000 57,500 2,500 1,775 725 4 Firefighter Equipment (Deputy Fire Chief) 2025-2035 6,000 - 6,000 5,700 300 213 87 5 Pick-up Truck (Deputy Fire Chief) 2025-2035 86,500 - 86,500 82,800 3,700 2,627 1,073 - - - - - - - Studies - - - - - - - 6 Fire Master Plan Update 2035 50,000 - 50,000 12,500 37,500 26,625 10,875 - - - - - - - Total 991,500 - 991,500 158,500 - 833,000 591,430 241,570 Post Period Benefit Net Capital Cost Gross Capital Cost Estimate (2025$) Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Increased Service Needs Attributable to Anticipated Development Timing (year) Watson & Associates Economists Ltd. PAGE 5-2 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table 5-2 Infrastructure Costs Covered in the D.C. Calculation - Services Related to a Highway Less: Potential D.C. Recoverable Cost Proj. No. Residential Share Non- Residential Share 2025 to 2035 71% 29% Vehicle Provisions: - - - - - - - 1 Road Plows 2025-2035 66,000 - 66,000 - 66,000 46,860 19,140 2 Sidewalk Plows 2025-2035 15,100 - 15,100 - 15,100 10,721 4,379 - - - - - - - 3 Rooney St. Sidewalk Extension to Crossover 2025-2035 68,800 - 68,800 - 68,800 48,848 19,952 4 Rooney St. Resurfacing/reconstruction 2025-2035 41,200 - 41,200 39,500 1,700 1,207 493 5 Stewart St. Resurfacing/reconstruction 2025-2035 175,500 - 175,500 168,100 7,400 5,254 2,146 6 Campbell St. - Final surface treatment 2025-2035 146,000 - 146,000 139,800 6,200 4,402 1,798 - - - - - - - Studies - - - - - - - 7 Active Transportation Strategy 2025-2035 100,000 - 100,000 25,000 75,000 53,250 21,750 - - - - - - - Total 612,600 - 612,600 372,400 - 240,200 170,542 69,658 Grants, Subsidies and Other Contributions Attributable to New Development Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2025$) Post Period Benefit Total Net Capital Cost Benefit to Existing Development Watson & Associates Economists Ltd. PAGE 5-3 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table 5-3 Infrastructure Costs Covered in the D.C. Calculation - Parks and Recreation Services Proj. No. Residential Share Non- Residential Share 2025 to 2035 95% 5% Faciities - - - - - - - 1 Provision for Additional Facility Space 2025-2035 1,328,402 77,913 1,250,488 - 1,250,488 1,187,964 62,524 - - - - - - - Amenities - - - - - - - 2 Splash Pad at Iroquois Beach 2025-2035 579,200 - 579,200 554,700 24,500 23,275 1,225 3 Matilda Park Spray Feature 2025-2035 50,000 - 50,000 47,900 1,060 1,040 988 52 4 Two Tennis Courts at Earl Baker Park in Morrisburg 2025-2035 225,000 - 225,000 215,500 9,500 9,025 475 5 New Outdoor Basketball Courts at Haldane Park 2025-2035 200,000 - 200,000 191,500 8,500 8,075 425 6 Skate Park at Earl Baker Park 2025-2035 521,200 - 521,200 499,100 22,100 20,995 1,105 7 Haldane Park Community Skate Park 2025-2035 521,200 - 521,200 499,100 22,100 20,995 1,105 8 Playground at Iroquois Waterfront 2025-2027 144,800 - 144,800 138,700 6,100 5,795 305 9 Off-Leash Dog Park in Iroquois 2025-2035 52,000 - 52,000 49,800 1,102 1,098 1,043 55 10 Second Volleyball Court at Morrisburg Beach 2025-2027 23,200 - 23,200 22,200 1,000 950 50 11 Second Volleyball Court at Matilda Memorial Park 2028-2031 17,400 - 17,400 16,700 700 665 35 12 Outdoor Fitness Equipment 2028-2031 185,300 - 185,300 177,400 7,900 7,505 395 - - - - - - - 13 Provision for Parkland Development 2025-2035 225,096 - 225,096 - 225,096 213,841 11,255 14 Provision for pedestrian circulation areas in existing parks, linkages, AT routes in new residential areas, rural trail connections 2025-2035 18,343 - 18,343 17,600 743 705 37 - - - - - - - Studies - - - - - - - 15 Morrisburg Waterfront Plan and Iroquois Park Commons Waterfront Plan Updates 2025-2035 86,900 - 86,900 21,700 65,200 61,940 3,260 16 Outdoor Pool Feasability Study 2025-2035 50,000 - 50,000 47,900 2,100 1,995 105 - - - - - - - - - - - - - - Total 4,228,041 77,913 4,150,127 2,499,800 2,162 1,648,165 1,565,757 82,408 Post Period Benefit Net Capital Cost Less: Potential D.C. Recoverable Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Gross Capital Cost Estimate (2025$) Increased Service Needs Attributable to Anticipated Development Timing (year) Watson & Associates Economists Ltd. PAGE 5-4 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table 5-4 Infrastructure Costs Covered in the D.C. Calculation - Growth Related Studies Table 5-5 Infrastructure Costs Covered in the D.C. Calculation - Growth-Related Studies - Residential/Non-Residential Shares 2025 to 2035 1 Development Charges Background Study 2030 35,000 - 35,000 - 35,000 2 Development Charges Background Study 2035 35,000 - 35,000 - 35,000 3 Zoning By-law Update 2025 19,850 - 4,975 14,875 9,900 4,975 - - - - - - - - Total 89,850 - 4,975 84,875 9,900 - 74,975 Proj. No. Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2025$) Post Period Benefit Other Deductions (to recognize benefit to non-D.C. services) Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Less: Potential D.C. Recoverable Cost Service Total Residential Share Non- Residential Share Fire Protection Services 22,950 16,294 6,655 Services Related to a Highway 6,618 4,699 1,919 Parks and Recreation Services 45,408 43,137 2,270 Total 74,975 64,130 10,845 Residential/Non-Residential Share 86% 14% Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Chapter 6 D.C. Calculation Watson & Associates Economists Ltd. PAGE 6-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 6. D.C. Calculation Table 6-1 presents the calculation of the D.C.s to be imposed for Fire Protection Services, Services Related to a Highway, Parks and Recreation Services, and Growth- Related Studies in the Municipality over the 10-year forecast period. The calculation for residential development is generated on a per capita basis and is based upon four forms of housing types (single and semi-detached, apartments 2+ bedrooms, apartment's bachelor and 1 bedroom, and all other multiples). The non- residential is calculated D.C. based on a per sq.ft. of G.F.A. basis. Table 6-2 summarizes the recommended schedule of charges, reflecting the maximum D.C.s by residential dwelling type, and the per sq.ft. of G.F.A. for non-residential development. The calculated Municipality-wide charge is $10,523 for a single detached residential dwelling unit and $1.92 per sq.ft. of non-residential G.F.A. Table 6-1 Municipality-wide Services D.C. Calculation 2025 to 2035 2025$ D.C.-Eligible Cost 2025$ D.C.-Eligible Cost SERVICE/CLASS Residential Non-Residential S.D.U. per sq.ft. $ $ $ $ 1. Fire Protection Services 591,430 241,570 2,602 1.15 2. Services Related to a Highway 170,542 69,658 750 0.33 3. Parks and Recreation Services 1,565,757 82,408 6,889 0.39 4. Growth-Related Studies 64,130 10,845 282 0.05 TOTAL $2,391,859 $404,481 $10,523 1.92 D.C.-Eligible Capital Cost $2,391,859 $404,481 10-Year Gross Population/GFA Growth (sq.ft.) 583 211,100 Cost Per Capita/Non-Residential GFA (sq.ft.) $4,102.67 $1.92 By Residential Unit Type P.P.U. Single and Semi-Detached Dwelling 2.565 $10,523 Other Multiples 2.110 $8,657 Apartments - 2 Bedrooms + 1.767 $7,249 Apartments - Bachelor and 1 Bedroom 1.278 $5,243 Watson & Associates Economists Ltd. PAGE 6-2 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table 6-2 Schedule of Calculated D.C.s NON-RESIDENTIAL Single and Semi- Detached Dwelling Other Multiples Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom (per sq.ft. of Gross Floor Area) Municipal Wide Services/Class of Service: Fire Protection Services 2,602 2,140 1,792 1,296 1.15 Services Related to a Highway 750 617 517 374 0.33 Parks and Recreation Services 6,889 5,667 4,746 3,432 0.39 Growth-Related Studies 282 232 194 141 0.05 Total Municipal Wide Services/Class of Services 10,523 8,656 7,249 5,243 1.92 RESIDENTIAL Service/Class of Service Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Chapter 7 D.C. Policy Recommendations and D.C. Policy Rules Watson & Associates Economists Ltd. PAGE 7-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 7. D.C. Policy Recommendations and D.C. Policy Rules 7.1 Introduction This chapter outlines the D.C. policy recommendations and by-law rules. Subsection 5 (1) 9 of the D.C.A. states that rules must be developed: "to determine if a development charge is payable in any particular case and to determine the amount of the charge, subject to the limitations set out in subsection 6." Paragraph 10 of the section goes on to state that the rules may provide for exemptions, phasing in and/or indexing of D.C.s. Subsection 5 (6) establishes the following restrictions on the rules: - the total of all D.C.s that would be imposed on anticipated development must not exceed the capital costs determined under subsection 5 (1) 2-7 for all services involved; - if the rules expressly identify a type of development, they must not provide for it to pay D.C.s that exceed the capital costs that arise from the increase in the need for service for that type of development; however, this requirement does not relate to any particular development; and - if the rules provide for a type of development to have a lower D.C. than is allowed, the rules for determining D.C.s may not provide for any resulting shortfall to be made up via other development. With respect to "the rules," section 6 states that a D.C. by-law must expressly address the matters referred to above re subsection 5 (1) paragraphs 9 and 10, as well as how the rules apply to the redevelopment of land. The rules provided give consideration for the recent changes to the D.C.A. resulting from Bills 197, 213, 109, 23, 97, 134, and 185. However, these policies are provided for Council's consideration and may be refined prior to adoption of the by-law. Watson & Associates Economists Ltd. PAGE 7-2 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 7.2 D.C. By-law Structure It is recommended that: - the Municipality uses a uniform Municipality-wide D.C. calculation for all municipal services; and - one municipal D.C. by-law be used for all services. 7.3 D.C. By-law Rules The following sets out the recommended rules governing the calculation, payment and collection of D.C.s in accordance with subsection 6 of the D.C.A. 7.3.1 Payment in any Particular Case In accordance with the D.C.A., s.2 (2), a D.C. be calculated, payable and collected where the development requires one or more of the following: (a) the passing of a zoning by-law or of an amendment to a zoning by-law under section 34 of the Planning Act; (b) the approval of a minor variance under section 45 of the Planning Act; (c) a conveyance of land to which a by-law passed under subsection 50 (7) of the Planning Act applies; (d) the approval of a plan of subdivision under section 51 of the Planning Act; (e) a consent under section 53 of the Planning Act; (f) the approval of a description under section 9 of the Condominium Act, 1998; or (g) the issuing of a permit under the Building Code Act, 1992 in relation to a building or structure. 7.3.2 Determination of the Amount of the Charge The following conventions be adopted: 1) Costs allocated to residential uses will be assigned to different types of residential units based on the average occupancy for each housing type constructed during the previous 15-year period. Costs allocated to non-residential uses will be assigned Watson & Associates Economists Ltd. PAGE 7-3 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx based on the amount of square feet of G.F.A. constructed for eligible uses (i.e., primary, industrial, commercial, and institutional). 2) Costs allocated to residential and non-residential uses are based upon a number of conventions, as may be suited to each municipal circumstance, as follows: - For Parks and Recreation Services, a 5% non-residential attribution has been made to recognize use by the non-residential sector; - For Services Related to a Highway, and Fire Protection Services, a 71% residential and 29% non-residential attribution has been made based on a population vs. employment growth ratio over the 10-year forecast period; and - For Growth-Related Studies, an 86% residential and 14% non-residential attribution has been made based on the allocations summarized in Table 5-5. 7.3.3 Application to Redevelopment of Land (Demolition and Conversion) If a development involves the demolition and replacement of a building or structure on the same site, or the conversion from one principal use to another, the developer shall be allowed a credit equivalent to: - the number of dwelling units demolished/converted multiplied by the applicable residential D.C. in place at the time the D.C. is payable; and/or - the G.F.A. of the building demolished/converted multiplied by the current non- residential D.C. in place at the time the D.C. is payable. The demolition credit is allowed only if the land was improved by occupied structures, and if the demolition permit related to the site was issued less than 60 months (5 years) prior to the issuance of a building permit. The credit can, in no case, exceed the amount of D.C.s that would otherwise be payable. No credit shall be given where the existing building or structure would have been exempt from D.C.s in accordance with the by-law. 7.3.4 Exemptions (full or partial) Statutory - The municipality or local board thereof; Watson & Associates Economists Ltd. PAGE 7-4 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx - A board of education; - Industrial additions of up to and including 50% of the existing G.F.A. of the building - for industrial additions which exceed 50% of the existing G.F.A., only the portion of the addition in excess of 50% is subject to D.C.s. Exemptions will only apply to 50% of the G.F.A. prior to the first expansion for which there was an exemption to the payment of D.C.s. - An enlargement to an existing dwelling unit; - Additional units in existing and new residential buildings: o May add up to two apartments for a single detached, semi-detached or row house (only one unit can be in an ancillary structure) o One additional unit or 1% of the units in an existing rental residential building with four or more residential units - Affordable Units, Attainable Units, and Inclusionary Zoning Units; - Non-Profit Housing; and - Universities. Non-Statutory - Farm buildings; - a Place of worship, cemetery, and burial ground; and - Group B, Division 2 (Care and treatment occupancies) as defined on the Ontario Building Code Act. 7.3.5 Transition The by-law will come into effect on July 16, 2025. No additional transition measures are proposed. 7.3.6 Timing of Collection The D.C.s for all services and classes are payable upon issuance of a building permit for each dwelling unit, building, or structure, subject to early or late payment agreements entered into by the ship and an owner under s. 27 of the D.C.A. Rental housing and institutional developments will pay D.C.s in six equal annual payments commencing at occupancy. Moreover, the D.C. amount for all developments occurring within two (2) years of a Site Plan or Zoning By-law Amendment planning approval (for applications submitted and approved after January 1, 2020, and June 5, Watson & Associates Economists Ltd. PAGE 7-5 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 2024), shall be determined based on the D.C. in effect on the day of the applicable Site Plan or Zoning By-law Amendment application. The D.C. amount for all developments occurring within eighteen (18) months of a Site Plan or Zoning By-law Amendment planning approval (for applications received on or after January 1, 2020, that had not received approval prior to June 6, 2024), shall be determined based on the D.C. in effect on the day of the applicable Site Plan or Zoning By-law Amendment application. Installment payments and payments determined at the time of Site Plan or Zoning By- law Amendment application are subject to annual interest charges. The maximum interest rate the Municipality can impose is the average prime rate plus 1% as defined in s.s. 26.3 (1) of the Act. 7.3.7 Indexing Indexing of the D.C.s shall be implemented on a mandatory basis annually on January 1st each year in accordance with the Statistics Canada Quarterly, Non-Residential Building Construction Price Index (Table 18-10-0135-01)1 for the most recent 3rd quarter year-over-year change. 7.3.8 D.C Spatial Applicability The D.C.A. historically has provided the opportunity for a municipality to impose municipal-wide charges or area specific charges. Sections 2 (7) and 2 (8) of the D.C.A. provide that a D.C. by-law may apply to the entire municipality or only part of it and more than one D.C. by-law may apply to the same area. The D.C.A. now requires municipalities to consider the application of municipal-wide and area-specific D.C.s. s.10 (2) (c.1) requires Council to consider the use of more than one D.C. by-law to reflect different needs from services in different areas. Most municipalities in Ontario have established uniform, municipal-wide D.C.s. When area-specific charges are used, it is generally to underpin master servicing and front-end financing arrangements for more localized capital costs. 1 O. Reg. 82/98 referenced "The Statistics Canada Quarterly, Construction Price Statistics, catalogue number 62-007" as the index source. Since implementation, Statistics Canada has modified this index twice and the above-noted index is the most current. The draft by-law provided herein refers to O. Reg. 82/98 to ensure traceability should this index continue to be modified over time. Watson & Associates Economists Ltd. PAGE 7-6 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx The rational for maintaining a Municipality-wide D.C. approach is based, in part, on the following: - The 15-year service level from all applicable services across the municipality can be included to establish an upper ceiling on the amount of funds which can be collected. If a D.C. by-law applied to only a part of the municipality, the level of service cannot exceed that which would be determined if the by-law applied to the whole municipality. As such, when applied to forecast growth within the specific area, it would establish an area specific level of service ceiling which could reduce the total revenue recoverable for the municipality, potentially resulting in D.C. revenue shortfalls and impacts on property taxes. - Municipal-wide D.C.s ensures a consistent approach to financing the entire cost associated with growth-related capital projects. For example, user rates and property taxes are required to finance the share of growth-related capital projects not recoverable by D.C.s and all associated operating costs. Therefore, the use of area specific D.C.s results in a share of growth-related capital costs being recovered from a specific area, with the remaining capital costs of the projects (i.e., non-D.C. recoverable share) and the associated operating costs with those new assets being recovered from uniform user rates and property taxes, applied to the entire municipality. - Attempting to impose an area-specific D.C. potentially causes equity issues in transitioning from a municipal-wide approach to an area-specific approach. An area of a municipality that is less developed and becomes subject to an area specific D.C., could face a significant increase in D.C. rates, as the municipality will not benefit from drawing on the pool of D.C. funding and may have contributed D.C.s to fund capital required to support development in other communities of the municipality. Whereas another part of the municipality that has experienced significant growth which required substantial capital investments benefitted from the capital investments being financed by municipal-wide D.C.s. The implementation of area specific D.C.s could result in varying D.C.s across the municipality, which may impact the ability to attract investment into parts of the community. - Services are generally available across the municipality, used often by all residents and are not restricted to one specific geographic area. The use of a municipal-wide D.C. approach reflects these system-wide benefits of service and Watson & Associates Economists Ltd. PAGE 7-7 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx more closely aligns with the funding principles of service provision (e.g., uniform municipal-wide property tax rates, etc.). Based on the foregoing and discussions with staff, the Municipality's practice of providing and funding services on a Municipality-wide basis is proposed to be maintained. 7.4 Other D.C. By-law Provisions It is recommended that: 7.4.1 Categories of Services for Reserve Fund and Credit Purposes It is recommended that the Municipality's D.C. collections be contributed into four (4) separate reserve funds, including: - Fire Protection Services; - Services Related to a Highway; - Parks and Recreation Services; and - Growth-Related Studies. 7.4.2 By-law In-force Date The by-law will come into force on July 16, 2025. 7.4.3 Minimum Interest Rate Paid on Refunds and Charged for Inter- Reserve Fund Borrowing The minimum interest rate is the Bank of Canada rate on the day on which the by-law come into force (as per s.11 of O. Reg. 82/98). 7.5 Other Recommendations It is recommended that Council: "Approve the capital project listing set out in Chapter 5 of the D.C. Background Study dated April 23, 2025, subject to further annual review during the capital budget process". Watson & Associates Economists Ltd. PAGE 7-8 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx "Approve the D.C. Background Study dated April 23, 2025." "Determine that no further public meeting is required." And "Approve the D.C. By-law as set out in Appendix E". Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Chapter 8 Asset Management Plan Watson & Associates Economists Ltd. PAGE 8-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 8. Asset Management Plan 8.1 Introduction The D.C.A. (new section 10(c.2)) requires that the background study must include an Asset Management Plan (A.M.P) related to new infrastructure. Section 10 (3) of the D.C.A. provides: The A.M.P. shall, a) deal with all assets whose capital costs are proposed to be funded under the development charge by-law; b) demonstrate that all the assets mentioned in clause (a) are financially sustainable over their full life cycle; c) contain any other information that is prescribed; and d) be prepared in the prescribed manner. At a broad level, the A.M.P. provides for the long-term investment in an asset over its entire useful life along with the funding. The schematic below identifies the costs for an asset through its entire lifecycle. For growth-related works, the majority of capital costs will be funded by the D.C. Non-growth-related expenditures will then be funded from non-D.C. revenues as noted below. During the useful life of the asset, there will be minor maintenance costs to extend the life of the asset along with additional program related expenditures to provide the full services to the residents. At the end of the life of the asset, it will be replaced by non-D.C. financing sources. The Province's Infrastructure for Jobs and Prosperity Act, 2015 (IJPA) was proclaimed on May 1, 2016. This legislation detailed principles for evidence-based and sustainable long-term infrastructure planning. The IJPA also gave the Province the authority to guide municipal asset management planning by way of regulation. In late 2017, the Province introduced O. Reg. 588/17 under the IJPA. The intent of O. Reg. 588/17 is to establish standard content for municipal asset management plans. Specifically, the regulations require that asset management plans be developed that define the current levels of service, identify the lifecycle activities that would be undertaken to achieve these levels of service, and provide a financial strategy to support the levels of service and lifecycle activities. The requirements of O. Reg. 588/17 generally align with previous provincial AMP requirements, as follows: Watson & Associates Economists Ltd. PAGE 8-2 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx State of local infrastructure: asset types, quantities, age, condition, financial accounting valuation and replacement cost valuation. Desired levels of service: defines levels of service through performance measures and discusses any external trends or issues that may affect expected levels of service or the municipality's ability to meet them (for example, new accessibility standards, climate change impacts). Asset management strategy: the asset management strategy is the set of planned actions that will seek to generate the desired levels of service in a sustainable way, while managing risk, at the lowest lifecycle cost. Financing strategy: having a financial plan is critical for putting an A.M.P. into action. By having a strong financial plan, municipalities can also demonstrate that they have made a concerted effort to integrate the A.M.P. with financial planning and municipal budgeting and are making full use of all available infrastructure financing tools. Purchase Install Commission Operate Maintain Monitor (Throughout Life of Assets) (To End of Useful Life) Removal/Decommission Disposal New Assets Replacement Assets Reserves/Reserve Funds Debentures User Fees Grants Other Proceeds on Disposal Funding of Disposal / Decommissioning Costs Operating Budget Financing Methods Purchase Install Commission Operate Maintain Monitor (Throughout Life of Assets) (To End of Useful Life) Removal/Decommission Disposal Watson & Associates Economists Ltd. PAGE 8-3 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx The asset management requirement for this D.C. Background Study has been undertaken independently of any Municipality A.M.P.s. 8.2 Asset Management Plan In recognition to the schematic in Section 8.1, the following table has been developed to provide the annualized expenditures and revenues associated with new growth. Note that the D.C.A. does not require an analysis of the non-D.C. capital needs or their associated operating costs so these are omitted from the table below. Furthermore, as only the present infrastructure gap has been considered at this time within the A.M.P., the following does not represent a fiscal impact assessment (including future tax/rate increases) but provides insight into the potential affordability of the new assets: 1. The non-D.C. recoverable portion of the projects which will require financing from Municipality financial resources (i.e., taxation, rates, fees, etc.). This amount has been presented on an annual debt charge amount based on 20-year financing. 2. Lifecycle costs for the 2025 D.C. capital works have been presented based on a sinking fund basis. The assets have been considered over their estimated useful lives. 3. Incremental operating costs for the D.C. services (only) have been included. 4. The resultant total annualized expenditures are $476,000. Of this total, $215,000 relates the annual debt payment costs for benefit to existing development of growth-related needs. 5. Consideration was given to the potential new taxation and user fee revenues which will be generated as a result of new growth. These revenues will be available to finance the expenditures above. The new operating revenues are $369,000. This amount, totalled with the existing operating revenues of $24.9 million, provides annual revenues of $25.3 million by the end of the period. 6. In consideration of the above, the capital plan is deemed to be financially sustainable. Watson & Associates Economists Ltd. PAGE 8-4 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table 8-1 Asset Management - Future Expenditures and Associated Revenues (2025$) Asset Management - Future Expenditures and Associated Revenues 2035 (Total) Expenditures (Annualized) Annual Debt Payment on Non-Growth Related Capital1 $215,124 Annual Debt Payment on Post Period Capital2 $5,733 Lifecycle: Annual Lifecycle - Municipal-wide Services $104,411 Incremental Operating Costs (for D.C. Services) $150,926 Total Expenditures $476,194 Revenue (Annualized) Total Existing Revenue3 $24,943,891 Incremental Tax and Non-Tax Revenue (User Fees, Fines, Licences, etc.) $368,854 Total Revenues $25,312,745 3 As per Sch. 10 of FIR 1 Non-Growth Related component of Projects 2 Interim Debt Financing for Post Period Benefit Watson & Associates Economists Ltd. PAGE 8-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Chapter 9 By-law Implementation Watson & Associates Economists Ltd. PAGE 9-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 9. By-law Implementation 9.1 Public Consultation Process 9.1.1 Introduction This chapter addresses the mandatory, formal public consultation process (section 9.1.2), as well as the optional, informal consultation process (section 9.1.3). The latter is designed to seek the co-operation and participation of those involved, in order to produce the most suitable policy. Section 9.2 addresses the anticipated impact of the D.C. on development from a generic viewpoint. 9.1.2 Public Meeting of Council Section 12 of the D.C.A. indicates that before passing a D.C. by-law, Council must hold at least one public meeting, giving at least 20 clear days' notice thereof, in accordance with the Regulation. Council must also ensure that the proposed by-law and background report are made available to the public at least two weeks prior to the (first) meeting. Any person who attends such a meeting may make representations related to the proposed by-law. If a proposed by-law is changed following such a meeting, Council must determine whether a further meeting (under this section) is necessary (i.e., if the proposed by-law which is proposed for adoption has been changed in any respect, Council should formally consider whether an additional public meeting is required, incorporating this determination as part of the final by-law or associated resolution). It is noted that Council's decision, once made, is final and not subject to review by a Court or the OLT. 9.1.3 Other Consultation Activity There are three broad groupings of the public who are generally the most concerned with a municipal D.C. policy: 1. The first grouping is the residential development community, consisting of land developers and builders, who are typically responsible for generating the majority of the D.C. revenues. Others, such as realtors, are directly impacted by D.C. Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx policy. They are, therefore, potentially interested in all aspects of the charge, particularly the quantum by unit type, projects to be funded by the D.C. and the timing thereof, and municipal policy with respect to development agreements, D.C. credits and front-ending requirements. 2. The second public grouping embraces the public at large and includes taxpayer coalition groups and others interested in public policy. 3. The third grouping is the industrial/commercial/institutional/primary development sector, consisting of land developers and major owners or organizations with significant construction plans, such as hotels, entertainment complexes, shopping centres, offices, industrial buildings, institutional buildings, and buildings on agricultural lands. Also involved are organizations such as Industry Associations, the Chamber of Commerce, the Board of Trade and the Economic Development Agencies, who are all potentially interested in a municipality's D.C. policy. Their primary concern is frequently with the quantum of the charge, gross floor area exclusions such as basements, mechanical or indoor parking areas, or exemptions and phase-in or capping provisions in order to moderate the impact. 9.2 Anticipated Impact of the Charge on Development The establishment of sound D.C. policy often requires the achievement of an acceptable balance between two competing realities. The first is that high non- residential D.C.s can, to some degree, represent a barrier to increased economic activity and sustained industrial/commercial growth, particularly for capital intensive uses. Also, in many cases, increased residential D.C.s can ultimately be expected to be recovered via housing prices and can impact project feasibility in some cases (e.g., rental apartments). On the other hand, D.C.s or other municipal capital funding sources need to be obtained in order to help ensure that the necessary infrastructure and amenities are installed. The timely installation of such works is a key initiative in providing adequate service levels and in facilitating strong economic growth, investment, and wealth generation. Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 9.3 Implementation Requirements 9.3.1 Introduction Once the Municipality has calculated the charge, prepared the complete background study, carried out the public process and passed a new by-law, the emphasis shifts to implementation matters. These include notices, potential appeals and complaints, credits, front-ending agreements, subdivision agreement conditions and finally the collection of revenues and funding of projects. The sections that follow present an overview of the requirements in each case. 9.3.2 Notice of Passage In accordance with section 13 of the D.C.A., when a D.C. by-law is passed, the Municipality's Clerk shall give written notice of the passing and of the last day for appealing the by-law (the day that is 40 days after the day it was passed). Such notice must be given no later than 20 days after the day the by-law is passed (i.e., as of the day of newspaper publication or the mailing of the notice). Section 10 of O. Reg. 82/98 further defines the notice requirements which are summarized as follows: - notice may be given by publication in a newspaper which is (in the Clerk's opinion) of sufficient circulation to give the public reasonable notice, or by personal service, fax, or mail to every owner of land in the area to which the by-law relates; - subsection 10 (4) lists the persons/organizations who must be given notice; and - subsection 10 (5) lists the eight items that the notice must cover. 9.3.3 By-law Pamphlet In addition to the "notice" information, the Municipality must prepare a "pamphlet" explaining each D.C. by-law in force, setting out: - a description of the general purpose of the D.C.s; Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx - the "rules" for determining if a charge is payable in a particular case and for determining the amount of the charge; - the services to which the D.C.s relate; and - a description of the general purpose of the Treasurer's statement and where it may be received by the public. Where a by-law is not appealed to the OLT, the pamphlet must be readied within 60 days after the by-law comes into force. Later dates apply to appealed by-laws. The Municipality must give one copy of the most recent pamphlet without charge to any person who requests one. 9.3.4 Appeals Sections 13 to 19 of the D.C.A. set out the requirements relative to making and processing a D.C. by-law appeal and OLT hearing in response to an appeal. Any person or organization may appeal a D.C. by-law to the OLT by filing a notice of appeal with the Municipality Clerk, setting out the objection to the by-law and the reasons supporting the objection. This must be done by the last day for appealing the by-law, which is 40 days after the by-law is passed. The Municipality is conducting a public consultation process in order to address the issues that come forward as part of that process, thereby avoiding or reducing the need for an appeal to be made. 9.3.5 Complaints A person required to pay a D.C., or his agent, may complain to the Municipality Council imposing the charge that: - the amount of the charge was incorrectly determined; - the reduction to be used against the D.C. was incorrectly determined; or - there was an error in the application of the D.C. Sections 20 to 25 of the D.C.A. set out the requirements that exist, including the fact that a complaint may not be made later than 90 days after a D.C. (or any part of it) is payable. A complainant may appeal the decision of Municipality Council to the OLT. Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 9.3.6 Credits Sections 38 to 41 of the D.C.A. set out a number of credit requirements, which apply where a municipality agrees to allow a person to perform work in the future that relates to a service in the D.C. by-law. These credits would be used to reduce the amount of D.C.s to be paid. The value of the credit is limited to the reasonable cost of the work, which does not exceed the average level of service. The credit applies only to the service to which the work relates unless the municipality agrees to expand the credit to other services for which a D.C. is payable. 9.3.7 Front-Ending Agreements The Municipality and one or more landowners may enter into a front-ending agreement that provides for the costs of a project that will benefit an area in the Municipality to which the D.C. by-law applies. Such an agreement can provide for the costs to be borne by one or more parties to the agreement who are, in turn, reimbursed in future by persons who develop land defined in the agreement. Part III of the D.C.A. (sections 44 to 58) addresses front-ending agreements and removes some of the obstacles to their use which were contained in the Development Charges Act, 1989. Accordingly, the Municipality assesses whether this mechanism is appropriate for its use, as part of funding projects prior to Municipality funds being available. 9.3.8 Severance and Subdivision Agreement Conditions Section 59 of the D.C.A. prevents a municipality from imposing directly or indirectly, a charge related to development or a requirement to construct a service related to development, by way of a condition or agreement under section 51 or section 53 of the Planning Act, except for: - "local services, related to a plan of subdivision or within the area to which the plan relates, to be installed or paid for by the owner as a condition of approval under section 51 of the Planning Act;" and - "local services to be installed or paid for by the owner as a condition of approval under section 53 of the Planning Act." Watson & Associates Economists Ltd. H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx It is also noted that subsection 59 (4) of the D.C.A. requires that the municipal approval authority for a draft plan of subdivision under subsection 51 (31) of the Planning Act, use its power to impose conditions to ensure that the first purchaser of newly subdivided land is informed of all the D.C.s related to the development, at the time the land is transferred. In this regard, if the municipality in question is a commenting agency, in order to comply with subsection 59 (4) of the D.C.A. it would need to provide to the approval authority information regarding the applicable municipal D.C.s related to the site. If the Municipality is an approval authority for the purposes of section 51 of the Planning Act, it would be responsible to ensure that it collects information from all entities that can impose a D.C. The most effective way to ensure that purchasers are aware of this condition would be to require it as a provision in a registered subdivision agreement, so that any purchaser of the property would be aware of the charges at the time the title was searched prior to closing a transaction conveying the lands. Appendices Watson & Associates Economists Ltd. PAGE A-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Appendix A Background Information on Residential and Non- Residential Growth Forecast Watson & Associates Economists Ltd. PAGE A-2 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Schedule 1 Municipality of South Dundas Residential Growth Forecast Summary [1] Population includes the Census undercount estimated at approximately 3.5% and has been rounded. [2] Includes townhouses and apartments in duplexes. [3] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units. Notes: Numbers may not add due to rounding. Source: Derived from The United Counties Stormont, Dundas and Glengarry Growth Management Strategy Draft Report, September 6, 2023, by Watson & Associates Economists Ltd. Population Institutional Population Population Excluding Institutional Population Singles & Semi- Detached Multiple Dwellings [2] Apartments [3] Other Total Households Equivalent Institutional Households 11,170 10,794 149 10,645 3,839 258 244 101 4,442 135 2.430 11,210 10,833 138 10,695 3,930 240 265 110 4,545 125 2.383 11,430 11,044 99 10,945 4,050 250 280 70 4,650 90 2.375 12,010 11,610 104 11,506 4,250 253 319 70 4,892 95 2.373 12,540 12,122 110 12,012 4,413 289 374 70 5,146 100 2.356 40 39 -11 50 91 -18 21 9 103 -10 220 211 -39 250 120 10 15 -40 105 -35 580 566 5 561 200 3 39 0 242 5 530 512 6 506 163 36 55 0 254 5 Forecast Incremental Mid 2011 - Mid 2016 Mid 2016 - Mid 2021 Mid 2011 Mid 2016 Mid 2021 Early 2025 Early 2035 Mid 2021 - Early 2025 Early 2025 - Early 2035 Population (Including Census Undercount) [1] Year Excluding Census Undercount Housing Units Person Per Unit (P.P.U.): Total Population/ Total Households Historical Watson & Associates Economists Ltd. PAGE A-3 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Schedule 2 Municipality of South Dundas Estimate of the Anticipated Amount, Type and Location of Residential Development for Which Development Charges can be Imposed [1] Includes townhouses and apartments in duplexes. [2] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units. Source: Watson & Associates Economists Ltd. 2025 - 2035 69 18 28 115 260 (22) 238 3 241 2025 - 2035 24 0 0 24 62 (22) 40 0 40 2025 - 2035 51 18 27 96 212 (22) 190 3 193 2025 - 2035 19 0 0 19 49 (11) 38 0 38 2025 - 2035 163 36 55 254 583 (77) 506 6 512 Rural Municipality of South Dundas Institutional Population Net Population Including Institutional Location Residential Units In New Units Population Change Morrisburg Williamsburg Iroquois Development Timing Single & Semi- Detached Multiples[1] Apartments[2] Total Gross Population Existing Unit Net Population Increase, Excluding Institutional Watson & Associates Economists Ltd. PAGE A-4 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Schedule 3 Municipality of South Dundas Current Year Growth Forecast Mid-2021 to Early-2025 Mid 2021 Population 11,044 Occupants of Units (2) 242 New Housing Units, multiplied by P.P.U. (3) 2.635 Mid 2021 to Early 2025 gross population increase 638 638 Occupants of New Units 5 Equivalent Institutional Units, multiplied by P.P.U. (3) 1.100 Mid 2021 to Early 2025 gross population increase 5 5 Change in Housing Units (4) 4,650 Unit Occupancy, multiplied by P.P.U. change rate (5) -0.017 Mid 2021 to Early 2025 total change in population -77 -77 Population Estimate to Early 2025 11,610 Net Population Increase, Mid 2021 to Early 2025 566 (1) 2021 population based on Statistics Canada Census unadjusted for Census undercount. (2) (3) Average number of persons per unit (P.P.U.) is assumed to be: Singles & Semi Detached 2.789 83% 2.305 Multiples (6) 1.944 1% 0.024 Apartments (7) 1.893 16% 0.305 Total 100% 2.635 [1] Based on 2021 Census custom database. [2] Based on Building permit/completion activity. (4) 2021 households taken from Statistics Canada Census. (5) Change occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. (6) Includes townhouses and apartments in duplexes. (7) Includes bachelor, 1-bedroom and 2-bedroom+ apartments. Note: Numbers may not add to totals due to rounding. Estimated residential units constructed, Mid-2021 to the beginning of the growth period assuming a six-month lag between construction and occupancy. Population Structural Type Persons Per Unit [1] (P.P.U.) % Distribution of Estimated Units [2] Weighted Persons Per Unit Average Watson & Associates Economists Ltd. PAGE A-5 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Schedule 4 Municipality of South Dundas 10-Year Growth Forecast Early-2025 to Early-2035 Early 2025 Population 11,610 Occupants of Units (2) 254 New Housing Units, multiplied by P.P.U. (3) 2.295 Early 2025 to Early 2035 gross population increase 583 583 Occupants of New Units 5 Equivalent Institutional Units, multiplied by P.P.U. (3) 1.100 Early 2025 to Early 2035 gross population increase 6 6 Change in Housing Units (4) 4,892 Unit Occupancy, multiplied by P.P.U. change rate (5) -0.016 Early 2025 to Early 2035 total change in population -77 -77 Population Estimate to Early 2035 12,122 Net Population Increase, Early 2025 to Early 2035 512 (1) Early 2025 Population based on: (2) Based upon forecast building permits/completions assuming a lag between construction and occupancy. (3) Average number of persons per unit (P.P.U.) is assumed to be: Singles & Semi Detached 2.565 64% 1.646 Multiples (6) 2.110 14% 0.299 Apartments (7) 1.614 22% 0.350 one bedroom or less 1.278 two bedrooms or more 1.767 Total 100% 2.295 [1] Persons per unit based on adjusted Statistics Canada Custom 2021 Census database. [2] Forecast unit mix based upon historical trends and housing units in the development process. (4) Early 2025 households based upon 2021 Census (4,650 units) + Mid 2021 to Early 2025 unit estimate (242 units) = 4,892 units. (5) (6) Includes townhouses and apartments in duplexes. (7) Includes bachelor, 1-bedroom and 2-bedroom+ apartments. Note: Numbers may not add to totals due to rounding. Change occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. Population 2021 Population (11,044) + Mid 2021 to Early 2025 estimated housing units to beginning of forecast period (242 x 2.635 = 638) + (5 x 1.1 = 5) + (4,650 x -0.017 = -77) = 11,610 Structural Type Persons Per Unit [1] (P.P.U.) % Distribution of Estimated Units [2] Weighted Persons Per Unit Average Watson & Associates Economists Ltd. PAGE A-6 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Schedule 5 Municipality of South Dundas Historical Residential Building Permits Years 2015 to 2024 [1] Includes townhouses and apartments in duplexes. [2] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units. Source: Historical housing activity derived from building permit data for the Municipality of South Dundas, by Watson & Associates Economists Ltd. Residential Building Permits Total 2015 20 0 0 20 2016 20 0 0 20 2017 23 0 0 23 2018 24 0 0 24 2019 29 0 0 29 Sub-total 116 0 0 116 Average (2015 - 2019) 23 0 0 23 % Breakdown 100.0% 0.0% 0.0% 100.0% 2020 21 0 0 21 2021 31 0 5 36 2022 47 3 9 59 2023 35 0 3 38 2024 30 0 44 74 Sub-total 164 3 61 228 Average (2020 - 2024) 33 1 12 46 % Breakdown 71.9% 1.3% 26.8% 100.0% 2015 - 2024 Total 280 3 61 344 Average 28 0 6 34 % Breakdown 81.4% 0.9% 17.7% 100.0% Year Singles & Semi Detached Multiples [1] Apartments [2] Watson & Associates Economists Ltd. PAGE A-7 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Schedule 6a Municipality of South Dundas Person Per Unit by Age and Type of Dwelling (2021 Census) [1] Adjusted based on historical trends. Note: Does not include Statistics Canada data classified as "Other." P.P.U. Not calculated for samples less than or equal to 50 dwelling units and does not include institutional population. Age of Singles and Semi-Detached Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 15 Year Average 15 Year Average Adjusted[1] 1-5 - - - 3.333 - 2.789 6-10 - - - 2.263 - 2.103 2.446 (0.120) 11-15 - - - 3.318 - 2.972 2.622 2.565 16-20 - - - 2.684 - 2.781 2.662 2.565 21-25 - - - 2.594 - 2.522 2.634 2.565 26-30 - - 1.750 2.625 - 2.417 30+ - 1.636 1.740 2.488 3.576 2.383 2.567 2.565 Total - 1.818 1.743 2.551 3.860 2.434 Age of All Density Types Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 1-5 - - - 3.333 - 2.944 6-10 - - 1.636 2.150 - 2.000 11-15 - - - 3.167 - 2.795 16-20 - - - 2.857 - 2.857 21-25 - - 1.769 2.688 - 2.500 25-30 - - 1.786 2.559 - 2.250 30+ - 1.256 1.729 2.480 3.576 2.299 Total - 1.213 1.735 2.541 3.765 2.350 Watson & Associates Economists Ltd. PAGE A-8 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Schedule 6b United Counties of Stormont, Dundas and Glengarry Person Per Unit by Age and Type of Dwelling (2021 Census) [1] Includes townhomes and apartments in duplexes. [2] Includes bachelor, 1 bedroom and 2 bedroom+ apartments. [3] Adjusted based on historical trends. Note: Does not include Statistics Canada data classified as "Other." P.P.U. Not calculated for samples less than or equal to 50 dwelling units and does not include institutional population. Age of Multiples [1] Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 15 Year Average 15 Year Average Adjusted[3] 1-5 - - - - - 1.944 6-10 - - - - - - 11-15 - - - - - 2.182 2.063 2.110 16-20 - - - - - 2.400 2.175 2.110 21-25 - - 1.643 - - 2.462 2.247 2.110 26-30 - - 1.739 3.318 - 2.333 30+ - 1.247 1.877 2.817 - 2.201 Total 1.273 1.292 1.838 2.926 - 2.217 Age of Apartments [2] Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 15 Year Average 15 Year Average Adjusted[3] 1-5 - - 2.176 - - 1.893 6-10 - 1.278 1.600 - - 1.491 11-15 - 1.091 1.455 - - 1.324 1.569 1.614 16-20 - - 1.550 - - 1.531 1.560 1.614 21-25 - - 1.563 - - 1.674 1.583 1.614 26-30 - 1.143 1.706 - - 1.537 30+ 0.545 1.130 1.667 2.750 - 1.520 Total 0.630 1.141 1.663 2.689 - 1.527 Age of All Density Types Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 1-5 - 1.625 1.874 2.959 4.688 2.684 6-10 - 1.720 1.777 2.715 4.077 2.397 11-15 - 1.286 1.680 2.836 3.667 2.500 16-20 - 1.412 1.767 2.668 4.069 2.501 21-25 - 1.810 1.771 2.592 4.840 2.475 26-30 - 1.029 1.734 2.701 3.541 2.445 30+ 1.667 1.210 1.778 2.558 3.505 2.245 Total 1.643 1.243 1.775 2.602 3.680 2.305 Watson & Associates Economists Ltd. PAGE A-9 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Schedule 7 Municipality of South Dundas Person Per Unit Structural Type and Age of Dwelling (2021 Census) 2.79 2.10 2.97 2.78 2.52 2.42 2.38 1.94 0.00 2.18 2.40 2.46 2.33 2.20 1.89 1.49 1.32 1.53 1.67 1.54 1.52 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 1-5 6-10 11-15 16-20 20-25 25-35 35+ Persons Per Dwelling Age of Dwelling Singles and Semi-Detached Multiples Apartments Multiple and Apartment P.P.U.s are based on United Counties of Stormont, Dundas and Glengarry. Watson & Associates Economists Ltd. PAGE A-10 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Schedule 8a Municipality of South Dundas Employment Forecast, 2025 to 2035 [1] Statistics Canada defines no fixed place of work (N.F.P.O.W.) employees as "persons who do not go from home to the same workplace location at the beginning of each shift. Such persons include building and landscape contractors, travelling salespersons, independent truck drivers, etc." Note: Statistics Canada 2021 Census place of work employment data has been reviewed. The 2021 Census employment results have not been utilized due to a significant increase in work at home employment captured due to Census enumeration occurring during the provincial COVID-19 lockdown from April 1, 2021 to June 14, 2021. Source: Derived from The United Counties Stormont, Dundas and Glengarry Growth Management Strategy Draft Report, September 6, 2023, by Watson & Associates Economists Ltd. Employment Mid 2011 10,794 0.010 0.040 0.098 0.102 0.046 0.296 0.045 0.341 110 430 1,057 1,103 500 3,200 484 3,684 2,770 Mid 2016 10,833 0.007 0.048 0.082 0.107 0.044 0.287 0.043 0.330 75 515 890 1,155 475 3,110 464 3,574 2,595 Early 2025 11,610 0.006 0.050 0.082 0.102 0.041 0.281 0.043 0.324 75 581 947 1,181 478 3,262 494 3,756 2,681 Early 2035 12,122 0.007 0.052 0.085 0.103 0.043 0.290 0.046 0.336 85 630 1,030 1,245 525 3,515 560 4,075 2,885 Mid 2011 - Mid 2016 39 -0.003 0.008 -0.016 0.004 -0.002 -0.009 -0.002 -0.011 -35 85 -167 52 -25 -90 -20 -110 -175 Mid 2016 - Early 2025 777 0.000 0.003 -0.001 -0.005 -0.003 -0.006 0.000 -0.006 0 66 57 26 3 152 30 182 86 Early 2025 - Early 2035 512 0.001 0.002 0.003 0.001 0.002 0.009 0.004 0.013 10 49 83 64 47 253 66 319 204 Mid 2011 - Mid 2016 8 -0.001 0.002 -0.003 0.001 0.000 -0.002 0.000 -0.002 -7 17 -33 10 -5 -18 -4 -22 -35 Mid 2016 - Early 2025 91 0.000 0.000 0.000 -0.001 0.000 -0.001 0.000 -0.001 0 8 7 3 0 18 4 21 10 Early 2025 - Early 2035 51 0.000 0.000 0.000 0.000 0.000 0.001 0.000 0.001 1 5 8 6 5 25 7 32 20 Total (Excluding Work at Home and N.F.P.O.W.) Incremental Change Annual Average Total Including N.F.P.O.W. N.F.P.O.W. [1] Work at Home Industrial Commercial/ Population Related Total Employment (Including N.F.P.O.W.) Institutional N.F.P.O.W. [1] Activity Rate Period Population Primary Work at Home Industrial Commercial/ Population Related Institutional Total Employment Primary Total Watson & Associates Economists Ltd. PAGE A-11 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Schedule 8b Municipality of South Dundas Employment and Gross Floor Area (G.F.A.) Forecast, 2025 to 2035 [1] Square Foot Per Employee Assumptions Primary 3,000 Industrial 1,400 Commercial/Population-Related 500 Institutional 700 [2] Primary industry includes agriculture and resource related employment. *Reflects Early-2025 to Early-2035 forecast period. Note: Numbers may not add up precisely due to rounding. Source: Watson & Associates Economists Ltd. Mid 2011 10,794 110 1,057 1,103 500 2,770 330,000 1,479,800 551,500 350,000 2,711,300 Mid 2016 10,833 75 890 1,155 475 2,595 225,000 1,246,000 577,500 332,500 2,381,000 Early 2025 11,610 75 947 1,181 478 2,681 225,000 1,325,800 590,500 334,600 2,475,900 Early 2035 12,122 85 1,030 1,245 525 2,885 255,000 1,442,000 622,500 367,500 2,687,000 Mid 2011 - Mid 2016 39 -35 -167 52 -25 -175 Mid 2016 - Early 2025 777 0 57 26 3 86 0 79,800 13,000 2,100 94,900 Early 2025 - Early 2035 512 10 83 64 47 204 30,000 116,200 32,000 32,900 211,100 Mid 2011 - Mid 2016 8 -7 -33 10 -5 -35 Mid 2016 - Early 2025 91 0 7 3 0 10 0 9,388 1,529 247 11,165 Early 2025 - Early 2035 51 1 8 6 5 20 3,000 11,620 3,200 3,290 21,110 Period Population Employment Total Annual Average Primary Industrial Institutional Total Primary [2] Gross Floor Area in Square Feet (Estimated) [1] Incremental Change Commercial/ Population Related Institutional Industrial Commercial/ Population Related Watson & Associates Economists Ltd. PAGE A-12 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Schedule 8c Municipality of South Dundas Estimate of the Anticipated Amount, Type and Location of Non-Residential Development for Which Development Charges Can Be Imposed [1] Square Foot Per Employee Assumptions Primary 3,000 Industrial 1,400 Commercial/Population-Related 500 Institutional 700 [2] Primary industry includes agriculture and resource related employment. [3] Employment Increase does not include No Fixed Place of Work. *Reflects Early-2025 to Early-2035 forecast period. Note: Numbers may not add up precisely due to rounding. Source: Watson & Associates Economists Ltd. Morrisburg 2025 - 2035 3,000 23,800 11,000 11,200 49,000 56 Williamsburg 2025 - 2035 3,000 18,200 6,500 7,000 34,700 37 Iroquois 2025 - 2035 15,000 57,400 10,500 14,700 97,600 88 Rural 2025 - 2035 9,000 16,800 4,000 - 29,800 23 Municipality of South Dundas 2025 - 2035 30,000 116,200 32,000 32,900 211,100 204 Development Location Timing Total Non- Residential G.F.A. S.F. Employment Increase [3] Primary G.F.A. S.F. [1],[2] Industrial G.F.A. S.F.[1] Commercial G.F.A. S.F.[1] Institutional G.F.A. S.F.[1] Watson & Associates Economists Ltd. PAGE A-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Schedule 9 Municipality of South Dundas Employment Categories by Major Employment Sector Note: Employment is classified by North American Industry Classification System (NAICS) Code. Source: Watson & Associates Economists Ltd. Primary Industry Employment 11 Agriculture, forestry, fishing and hunting 21 Mining and oil and gas extraction Industrial and Other Employment 22 Utilities 23 Construction 31-33 Manufacturing 41 Wholesale trade 48-49 Transportation and warehousing 56 Administrative and support Population Related Employment 44-45 Retail trade 51 Information and cultural industries 52 Finance and insurance 53 Real estate and rental and leasing 54 Professional, scientific and technical services 55 Management of companies and enterprises 56 Administrative and support 71 Arts, entertainment and recreation 72 Accommodation and food services 81 Other services (except public administration) Institutional 61 Educational services 62 Health care and social assistance 91 Public administration Comments Categories which relate to local land-based resources Categories which relate primarily to industrial land supply and demand Categories which relate primarily to population growth within the municipality NAICS Employment by industry Watson & Associates Economists Ltd. PAGE B-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Appendix B Level of Service Watson & Associates Economists Ltd. PAGE B-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table B-1 Service Standard Calculation - Fire Protection Services - Facilities Municipality of South Dundas Service Standard Calculation Sheet Service: Fire Protection Services - Facilities Unit Measure: sq.ft. of building area Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Bld'g Value ($/sq.ft.) Value/sq.ft. with land, site works, etc. Iroquois Fire Station 5,100 5,100 5,100 5,100 5,100 5,100 5,100 5,100 5,100 5,100 5,100 5,100 5,100 5,100 5,100 $610 $708 Morrisburg Fire Station 3,400 3,400 3,400 3,400 3,400 3,400 3,400 3,400 3,400 3,400 3,400 3,400 3,400 3,400 3,400 $610 $708 Williamsburg Fire Station 3,800 3,800 3,800 3,800 3,800 3,800 3,800 3,800 3,800 3,800 3,800 3,800 3,800 3,800 3,800 $515 $598 Storage Buildings (# of buildings) 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $5,150 $5,952 Training Facility (# of Buildings) 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 $10,060 $10,060 Total 12,305 12,305 12,305 12,305 12,305 12,305 12,305 12,305 12,305 12,305 12,305 12,305 12,305 12,305 12,305 Population 10,602 10,645 10,670 10,700 10,700 10,702 10,695 10,737 10,786 10,838 10,902 10,945 11,018 11,250 11,432 Per Capita Standard 1.1606 1.1559 1.1532 1.1500 1.1500 1.1498 1.1505 1.1460 1.1408 1.1354 1.1287 1.1243 1.1168 1.0938 1.0764 15 Year Average 2010 to 2024 Quantity Standard 1.1355 Quality Standard $677 Service Standard $769 D.C. Amount (before deductions) 10 Year Forecast Population 506 $ per Capita $769 Eligible Amount $389,068 Watson & Associates Economists Ltd. PAGE B-2 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table B-2 Service Standard Calculation - Fire Protection Services - Vehicles & Equipment Municipality of South Dundas Service Standard Calculation Sheet Service: Fire Protection Services - Vehicles & Equipment Unit Measure: No. of vehicles Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value ($/Vehicle) Williamsburg Pumper/Rescue 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $1,200,000 Rescue 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $669,500 Tanker 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 $800,000 Pumper Tanker 1 1 $730,000 Morrisburg Pumper/Rescue 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $1,200,000 Rescue 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $669,500 Pumper Tanker 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $730,000 Pick-up Truck 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $130,000 Iroquis Pumper/Rescue 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $1,350,000 Rescue 1 1 1 1 1 1 1 1 1 - - - - - - $669,500 Tanker 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $800,000 Pick-up Truck 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 $130,000 Admin Pick-up Truck 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $86,500 Total 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 Population 10,602 10,645 10,670 10,700 10,700 10,702 10,695 10,737 10,786 10,838 10,902 10,945 11,018 11,250 11,432 Per Capita Standard 0.0012 0.0012 0.0012 0.0012 0.0012 0.0012 0.0012 0.0012 0.0012 0.0012 0.0012 0.0012 0.0012 0.0012 0.0011 15 Year Average 2010 to 2024 Quantity Standard 0.0012 Quality Standard $693,208 Service Standard $832 D.C. Amount (before deductions) 10 Year Forecast Population 506 $ per Capita $832 Eligible Amount $420,916 Watson & Associates Economists Ltd. PAGE B-3 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table B-3 Service Standard Calculation - Fire Protection Services - Small Gear & Equipment Municipality of South Dundas Service Standard Calculation Sheet Service: Fire Protection Services - Small Equipment and Gear Unit Measure: No. of equipment and gear Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value ($/item) Equipped Firefighters 66 66 66 66 66 66 66 66 66 66 66 66 66 66 66 $6,000 Air Cylinders 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 $1,900 SCBA 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 $4,900 SCBA Compressor & Smart Fill System - 1 1 1 1 1 1 1 1 1 1 1 1 1 $42,500 Air Station - 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $21,500 Radios 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 $2,600 Pagers 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 $700 Large Generator - 3 3 3 3 3 3 3 3 3 3 3 3 $23,300 Medium Generator 10 10 10 10 10 10 10 10 10 10 8 8 8 8 8 $7,100 Small Generator - 3 3 3 3 3 3 3 3 3 3 3 3 $2,600 Hoses 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 $400 Hose Tester - - - - - - - - - - - - - - 1 $6,700 Communication Tower 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $83,700 Gear Dryer 1 1 1 1 1 1 1 1 2 2 2 2 2 2 3 $11,600 Washing Machine - - - - - - - - - - - 1 1 2 2 $15,300 Extraction Equipment 2 3 3 2 2 2 2 3 3 3 3 3 3 3 3 $97,900 Airbags 5 5 5 4 4 4 4 4 4 4 4 4 4 4 4 $11,800 Thermal Imaging Camera 3 3 3 3 3 3 3 3 3 3 3 3 $11,900 Digital Radio System - 1 1 1 1 1 1 1 1 1 1 1 1 1 $69,500 Radio System- 2020 Carryover 1 1 1 1 $284,700 Portable Pump 5 5 5 4 4 4 4 4 4 4 4 4 4 4 4 $7,500 Ground Monitor 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 $7,300 Forcible Entry Simulator - - - - - - - - - - - - - - 1 $10,500 Other Small Equipment 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $89,600 Total 491 493 495 500 500 500 500 501 502 502 500 502 502 503 506 Population 10,602 10,645 10,670 10,700 10,700 10,702 10,695 10,737 10,786 10,838 10,902 10,945 11,018 11,250 11,432 Per Capita Standard 0.0463 0.0463 0.0464 0.0467 0.0467 0.0467 0.0468 0.0467 0.0465 0.0463 0.0459 0.0459 0.0456 0.0447 0.0443 15 Year Average 2010 to 2024 Quantity Standard 0.0461 Quality Standard $3,612 Service Standard $167 D.C. Amount (before deductions) 10 Year Forecast Population 506 $ per Capita $167 Eligible Amount $84,249 Watson & Associates Economists Ltd. PAGE B-4 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table B-4 Service Standard Calculation - Services Related to a Highway - Roads Municipality of South Dundas Service Standard Calculation Sheet Service: Services Related to a Highway - Roads Unit Measure: km of roadways Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value ($/km) Road Surface - Asphalt (HCB) 194.3 194.7 194.7 194.9 195.6 195.6 195.6 195.6 208.0 208.0 208.0 208.0 208.0 208.0 208.0 $272,400 Road Surface - Surface Treated (LCB) 107.3 107.7 107.7 107.9 108.6 108.6 108.6 108.6 121.0 121.0 121.0 121.0 121.0 121.0 121.0 $251,100 Road Base 301.6 302.5 302.5 302.8 304.2 304.2 304.2 304.2 329.0 329.0 329.0 329.0 329.0 329.0 329.0 $70,300 Gravel Roads 47.0 47.0 47.0 47.0 47.0 47.0 47.0 47.0 47.0 47.0 47.0 47.0 47.0 47.0 47.0 $25,100 Total 650 652 652 653 655 655 655 655 705 705 705 705 705 705 705 Population 10,602 10,645 10,670 10,700 10,700 10,702 10,695 10,737 10,786 10,838 10,902 10,945 11,018 11,250 11,432 Per Capita Standard 0.0613 0.0612 0.0611 0.0610 0.0613 0.0612 0.0613 0.0610 0.0654 0.0650 0.0647 0.0644 0.0640 0.0627 0.0617 15 Year Average 2010 to 2024 Quantity Standard 0.0625 Quality Standard $157,579 Service Standard $9,849 D.C. Amount (before deductions) 10 Year Forecast Population 506 $ per Capita $9,849 Eligible Amount $4,983,427 Watson & Associates Economists Ltd. PAGE B-5 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table B-5 Service Standard Calculation - Services Related to a Highway - Bridges & Culverts Municipality of South Dundas Service Standard Calculation Sheet Service: Services Related to a Highway - Bridges, Culverts & Structures Unit Measure: Number of Bridges, Culverts & Structures Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value ($/item) Bridges 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 $1,694,500 Culverts 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 $685,300 Total 38 38 38 38 38 38 38 38 38 38 38 38 38 38 38 Population 10,602 10,645 10,670 10,700 10,700 10,702 10,695 10,737 10,786 10,838 10,902 10,945 11,018 11,250 11,432 Per Capita Standard 0.0036 0.0036 0.0036 0.0036 0.0036 0.0036 0.0036 0.0035 0.0035 0.0035 0.0035 0.0035 0.0034 0.0034 0.0033 15 Year Average 2010 to 2024 Quantity Standard 0.0035 Quality Standard $1,059,106 Service Standard $3,707 D.C. Amount (before deductions) 10 Year Forecast Population 506 $ per Capita $3,707 Eligible Amount $1,875,676 Watson & Associates Economists Ltd. PAGE B-6 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table B-6 Service Standard Calculation - Services Related to a Highway - Sidewalks Municipality of South Dundas Service Standard Calculation Sheet Service: Services Related to a Highway - Sidewalks and Active Transportation Unit Measure: km of sidewalks and active transportation Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value ($/km) Sidewalks 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 $188,300 Total 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 29.8 Population 10,602 10,645 10,670 10,700 10,700 10,702 10,695 10,737 10,786 10,838 10,902 10,945 11,018 11,250 11,432 Per Capita Standard 0.0028 0.0028 0.0028 0.0028 0.0028 0.0028 0.0028 0.0028 0.0028 0.0027 0.0027 0.0027 0.0027 0.0026 0.0026 15 Year Average 2010 to 2024 Quantity Standard 0.0027 Quality Standard $191,778 Service Standard $518 D.C. Amount (before deductions) 10 Year Forecast Population 506 $ per Capita $518 Eligible Amount $262,007 Watson & Associates Economists Ltd. PAGE B-7 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table B-7 Service Standard Calculation - Services Related to a Highway - Traffic Signals & Streetlights Municipality of South Dundas Service Standard Calculation Sheet Service: Services Related to a Highway - Guide Rails & Streetlights Unit Measure: No. of Streetlights & Guide Rails Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value ($/item) Streetlights 857 857 857 857 857 857 857 857 857 857 857 857 857 857 857 $2,700 Guide Rail 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 $23,800 Total 886 886 886 886 886 886 886 886 886 886 886 886 886 886 886 Population 10,602 10,645 10,670 10,700 10,700 10,702 10,695 10,737 10,786 10,838 10,902 10,945 11,018 11,250 11,432 Per Capita Standard 0.0836 0.0832 0.0830 0.0828 0.0828 0.0828 0.0828 0.0825 0.0821 0.0817 0.0813 0.0810 0.0804 0.0788 0.0775 15 Year Average 2010 to 2024 Quantity Standard 0.0818 Quality Standard $3,390 Service Standard $277 D.C. Amount (before deductions) 10 Year Forecast Population 506 $ per Capita $277 Eligible Amount $140,329 Watson & Associates Economists Ltd. PAGE B-8 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table B-8 Service Standard Calculation - Services Related to a Highway - Facilities Municipality of South Dundas Service Standard Calculation Sheet Class of Service: Public Works - Facilities Unit Measure: sq.ft. of building area Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Bld'g Value ($/sq.ft.) Value/sq.ft. with land, site works, etc. Matilda Garage 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 $294 $328 Matilda Garage - Coverall Structure 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 $88 $101 Matilda Garage - Coverall Shed 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 $88 $101 Matilda Garage - Salt Shed 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 $206 $231 Williamsburg Garage 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 $258 $288 Williamsburg Garage - Coverall Structure 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 $88 $101 Williamsburg Garage - Storage Shed 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 $206 $231 Williamsburg Garage - Salt Shed 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 - - - - - $206 $231 Morrisburg Garage 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 $294 $328 Morrisburg Garage - Storage Shed 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 $201 $225 Total 36,800 36,800 36,800 36,800 36,800 36,800 36,800 36,800 36,800 36,800 35,800 35,800 35,800 35,800 35,800 Population 10,602 10,645 10,670 10,700 10,700 10,702 10,695 10,737 10,786 10,838 10,902 10,945 11,018 11,250 11,432 Per Capita Standard 3.4711 3.4570 3.4489 3.4393 3.4393 3.4386 3.4409 3.4274 3.4118 3.3955 3.2838 3.2709 3.2492 3.1822 3.1316 15 Year Average 2010 to 2024 Quantity Standard 3.3658 Quality Standard $197 Service Standard $664 D.C. Amount (before deductions) 10 Year Forecast Population 506 $ per Capita $664 Eligible Amount $336,030 Watson & Associates Economists Ltd. PAGE B-9 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table B-9 Service Standard Calculation - Services Related to a Highway - Vehicles & Equipment Municipality of South Dundas Service Standard Calculation Sheet Class of Service: Public Works - Vehicles & Equipment Unit Measure: No. of vehicles and equipment Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value ($/Vehicle) 1 Ton Pickup 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 $85,000 3/4 Ton Pickup - - - - - - - - - - 1 1 1 1 1 $85,000 1/2 Ton Pickup 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5 $68,000 Tandem Truck 7 7 7 7 6 6 6 5 5 5 5 4 3 2 2 $382,600 Tandem Plow 1 1 1 1 2 3 4 4 $460,300 Single Axle Plow 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 $300,000 Snow Blade & Sander - - - - - - - - - - - - - 1 1 $30,000 Sidewalk Plow - - - - 1 1 1 1 2 2 2 2 3 3 3 $234,600 Grader 2 2 2 2 2 3 3 3 2 2 2 2 1 1 1 $600,000 Backhoe 3 3 3 3 3 2 2 2 2 2 2 2 2 2 2 $201,600 Excavator 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $500,000 Tractor - - - - - - 1 1 1 1 1 1 1 1 1 $234,800 Roadside Mower 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $20,400 Float Trailer - - - - - 1 1 1 1 1 1 1 1 1 1 $8,000 Hot Box - - - - - - - - - - - 1 1 1 1 $60,000 Vehicle Hoist - - - - - - - - - - 1 1 1 1 1 $19,900 Total 22 22 22 22 22 23 24 24 24 24 27 28 28 29 29 Population 10,602 10,645 10,670 10,700 10,700 10,702 10,695 10,737 10,786 10,838 10,902 10,945 11,018 11,250 11,432 Per Capita Standard 0.0021 0.0021 0.0021 0.0021 0.0021 0.0021 0.0022 0.0022 0.0022 0.0022 0.0025 0.0026 0.0025 0.0026 0.0025 15 Year Average 2010 to 2024 Quantity Standard 0.0023 Quality Standard $260,374 Service Standard $599 D.C. Amount (before deductions) 10 Year Forecast Population 506 $ per Capita $599 Eligible Amount $303,023 Watson & Associates Economists Ltd. PAGE B-10 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table B-10 Service Standard Calculation - Parks and Recreation Services - Parkland Amenities Municipality of South Dundas Service Standard Calculation Sheet Service: Parkland Amenities Unit Measure: No. of parkland amenities Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value ($/item) Soccerfields - Intermediate fields 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 $40,000 Ball Diamonds - Lit 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 $225,000 Ball Diamonds - Unlit (Hardball) 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $144,200 Ball Diamonds - Unlit (Tee Ball) 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $40,000 Splashpad (Earl Baker Park) 1 1 1 1 1 1 1 1 1 $208,300 Tennis Courts 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 $112,500 Pickleball Courts 5 2 2 $112,500 Outdoor Basketball Courts 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 $200,000 Playgrounds 10 10 10 10 10 10 15 15 15 15 15 15 19 19 19 $70,200 Off-Leash Dog Parks 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $52,000 Sand Volleyball Courts 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 $25,000 Iroquois Marina - Floating Docks 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $200,000 T-Dock 1 1 1 1 1 1 $125,000 Beach Viewing Platform 1 2 $50,000 Docks 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $60,000 Total 37 38 38 38 38 38 44 44 44 45 45 45 54 52 53 Population 10,602 10,645 10,670 10,700 10,700 10,702 10,695 10,737 10,786 10,838 10,902 10,945 11,018 11,250 11,432 Per Capita Standard 0.0035 0.0036 0.0036 0.0036 0.0036 0.0036 0.0041 0.0041 0.0041 0.0042 0.0041 0.0041 0.0049 0.0046 0.0046 15 Year Average 2010 to 2024 Quantity Standard 0.0040 Quality Standard $102,815 Service Standard $411 D.C. Amount (before deductions) 10 Year Forecast Population 506 $ per Capita $411 Eligible Amount $208,098 Watson & Associates Economists Ltd. PAGE B-11 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table B-11 Service Standard Calculation - Parks and Recreation Services - Parkland Trails Municipality of South Dundas Service Standard Calculation Sheet Service: Parkland Trails Unit Measure: Linear Metres of Paths and Trails Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value ($/ Linear Metre) Morrisburg Waterfront Trails 1,156 1,156 1,156 1,156 1,156 1,156 1,156 1,156 1,156 1,156 1,156 1,356 1,356 1,356 1,356 $112 Iroquois Waterfront Trails 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 $112 Total 3,456 3,456 3,456 3,456 3,456 3,456 3,456 3,456 3,456 3,456 3,456 3,656 3,656 3,656 3,656 Population 10,602 10,645 10,670 10,700 10,700 10,702 10,695 10,737 10,786 10,838 10,902 10,945 11,018 11,250 11,432 Per Capita Standard 0.3260 0.3247 0.3239 0.3230 0.3230 0.3229 0.3231 0.3219 0.3204 0.3189 0.3170 0.3340 0.3318 0.3250 0.3198 15 Year Average 2010 to 2024 Quantity Standard 0.3237 Quality Standard $112 Service Standard $36 D.C. Amount (before deductions) 10 Year Forecast Population 506 $ per Capita $36 Eligible Amount $18,343 Watson & Associates Economists Ltd. PAGE B-12 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table B-12 Service Standard Calculation - Parks and Recreation Services - Facilities Municipality of South Dundas Service Standard Calculation Sheet Service: Recreation Facilities Unit Measure: sq.ft. of building area Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Bld'g Value ($/sq.ft.) Value/sq.ft. with land, site works, etc. Morrisburg Arena 33,100 33,100 33,100 33,100 33,100 33,100 33,100 33,100 33,100 33,100 33,100 33,100 33,100 33,100 33,100 $391 $435 Morrisburg Clock Tower / Storage 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $113,300 $124,917 Morrisburg Dock Pavillion 850 850 850 850 850 850 850 850 850 850 850 850 850 850 850 $103 $117 Iroquois Civic Centre 6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 $567 $629 Iroquois Marina Building 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 $211 $236 Iroquois Beach House / Washroom 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 $200 $224 Iroquois Rink Building 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 $211 $236 Iroquois Golf - Storage Building 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 $185 $208 Iroquois Bay Street - Park Building 400 400 400 400 400 400 400 400 400 400 400 400 400 400 400 $211 $236 3x Pavillions (Iroq Beach) 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550 $98 $112 Williamsburg Park Building 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 $283 $316 Lawn Bowling Buildings & Greens 953 953 953 953 953 953 953 953 953 953 953 953 953 953 953 $286 $319 Matilda Hall 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 8,200 $304 $339 Riverside Hall 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 $258 $288 Dunbar Hall 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 $258 $288 Forward House 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 $351 $391 Brinston Recreation Building 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 $258 $288 Brinston Washroom/Canteen 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 $232 $259 Beach Washroom / Change House 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 $232 $259 Waterfront Washroom 600 600 600 600 600 600 600 600 600 600 600 600 600 600 600 $232 $259 Earl Baker Park Splash Pad Washroom 300 300 300 300 300 300 300 300 300 300 $343 $382 John Ross Campground/Lawn Bowling 1,600 1,600 1,600 $318 $354 Total 74,554 74,554 74,554 74,554 74,554 74,854 74,854 74,854 74,854 74,854 74,854 74,854 76,454 76,454 76,454 Population 10,602 10,645 10,670 10,700 10,700 10,702 10,695 10,737 10,786 10,838 10,902 10,945 11,018 11,250 11,432 Per Capita Standard 7.0321 7.0037 6.9873 6.9677 6.9677 6.9944 6.9990 6.9716 6.9399 6.9066 6.8661 6.8391 6.9390 6.7959 6.6877 15 Year Average 2010 to 2024 Quantity Standard 6.9265 Quality Standard $379 Service Standard $2,625 D.C. Amount (before deductions) 10 Year Forecast Population 506 $ per Capita $2,625 Eligible Amount $1,328,402 Watson & Associates Economists Ltd. PAGE B-13 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Table B-13 Service Standard Calculation - Parks and Recreation Services - Vehicles & Equipment Municipality of South Dundas Service Standard Calculation Sheet Service: Parks & Recreation Vehicles and Equipment Unit Measure: No. of vehicles and equipment Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value ($/Vehicle) Zamboni Ice Resurfacer 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $136,000 3/4 Ton Van 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $85,000 3/4 Ton Pickup 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $85,000 1/2 Ton Pickup 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $68,000 Cub Cadet - 35 HP Tractor 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $55,000 Dump Trailer 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $11,100 Arena Floor Cleaner 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $10,000 Arena Floor Scrubber 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $9,500 Snowblower 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 $1,800 Utility Trailer 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $3,000 Mowers 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $3,600 Propane Arena Edger 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $4,500 Snow Bull Snow Pusher 1 $3,300 Bannerman Diamond Groomer 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $5,600 Rototiller 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $3,200 Total 18 18 18 18 18 18 18 18 18 18 19 19 19 19 20 Population 10,602 10,645 10,670 10,700 10,700 10,702 10,695 10,737 10,786 10,838 10,902 10,945 11,018 11,250 11,432 Per Capita Standard 0.0017 0.0017 0.0017 0.0017 0.0017 0.0017 0.0017 0.0017 0.0017 0.0017 0.0017 0.0017 0.0017 0.0017 0.0017 15 Year Average 2010 to 2024 Quantity Standard 0.0017 Quality Standard $30,253 Service Standard $51 D.C. Amount (before deductions) 10 Year Forecast Population 506 $ per Capita $51 Eligible Amount $26,024 Watson & Associates Economists Ltd. PAGE C-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Appendix C Long-Term Capital and Operating Cost Examination Watson & Associates Economists Ltd. PAGE C-2 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Appendix C: Long-Term Capital and Operating Cost Examination As a requirement of the D.C.A. under subsection 10 (2) (c), an analysis must be undertaken to assess the long-term capital and operating cost impacts for the capital infrastructure projects identified within the D.C. As part of this analysis, it was deemed necessary to isolate the incremental operating expenditures directly associated with these capital projects, factor in cost savings attributable to economies of scale or cost sharing where applicable and prorate the cost on a per unit basis (i.e., sq.ft. of building space, per vehicle, etc.). This was undertaken through a review of the Municipality's 2023 Financial Information Return. In addition to the operational impacts, over time the initial capital projects will require replacement. This replacement of capital is often referred to as lifecycle cost. By definition, lifecycle costs are all the costs which are incurred during the life of a physical asset, from the time its acquisition is first considered, to the time it is taken out of service for disposal or redeployment. The method selected for lifecycle costing is the sinking fund method which provides that money will be contributed annually and invested, so that those funds will grow over time to equal the amount required for future replacement. Table C-1 depicts the annual operating impact resulting from the proposed gross capital projects at the time they are all in place. It is important to note that, while municipal program expenditures will increase with growth in population, the costs associated with the new infrastructure (i.e., facilities) would be delayed until the time these works are in place. Table C-1 Operating and Capital Expenditure Impacts for Future Capital Expenditures ANNUAL LIFECYCLE EXPENDITURES ANNUAL OPERATING EXPENDITURES TOTAL ANNUAL EXPENDITURES 1. Fire Protection Services 40,946 31,898 72,844 2. Services Related to a Highway 13,084 4,996 18,081 3. Parks and Recreation Services 50,381 114,031 164,412 Total 104,411 150,926 255,337 SERVICE/CLASS Watson & Associates Economists Ltd. PAGE D-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Appendix D Local Service Policy Watson & Associates Economists Ltd. PAGE D-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Appendix D: Local Services Policy Some of the need for services generated by additional development consists of local services related to a plan of subdivision. As such, they will be required as a condition of subdivision agreements or consent conditions. The following local service guidelines delineate the jurisdiction for capital cost recovery (i.e., local service or D.C.s). Local Service guidelines are summarized in the following sample: 1. Collector Roads 1.1 Collector roads internal or abutting development up to 10m width plus two sidewalks and tow lifts of asphalt - Direct developer responsibility under s.59 of the D.C.A. (as a local service) 1.2 Roads (collector and arterial) external to development and oversizing of collector roads internal to development - Include in D.C. calculation to the extent permitted under s.5(1) of the D.C.A. (dependent on local circumstances) 1.3 Stream crossing and rail crossing road works, excluding underground utilities but including all other works within lands to be dedicated to the Municipality or rail corridors - include in D.C. calculation to the extent permitted under s.5(1) of the D.C.A. (dependent on local circumstances). 2. Traffic Signals 2.1 Traffic signalization within or external to development - Include in D.C calculation to the extent permitted under s.5(1) of the D.C.A. 3. Intersection Improvements 3.1 New roads (collector and arterial) and road (collector and arterial) improvements - Include as part of road costing noted in item 1, to limits of ROW. 3.2 Intersections improvements within specific developments and all works necessary to connect to entrances (private and specific subdivision) to the Watson & Associates Economists Ltd. PAGE D-2 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx roadway - Direct developer responsibility under s.59 of D.C.A. (as a local service) 3.3 Intersection improvements on other roads due to development growth increasing traffic - Include in D.C. calculation. 4. Streetlights 4.1 Streetlights on external roads - Include in Municipal D.C. (linked to collector road funding source in item 1). 4.2 Streetlights within specific developments - Direct developer responsibility under s.59 of D.C.A. (as a local service). 5. Sidewalks 5.1. Sidewalks on Municipal roads - Linked to collector road funding source in item 1. 5.2. Other sidewalks external to development (which are a local service within the area to which the plan relates) - Direct developer responsibility as a local service provision (under s.59 of D.C.A.) 6. Bike Routes/Bike Lanes/Bike Paths/Multi-Use Trails/Naturalized Walkways 6.1. Bike routes and bike lanes, within road allowance, external to development - Include in D.C. road costs, consistent with the service standard provisions of the D.C.A., s.5(1). 6.2. Bike paths/multi-use trails/naturalized walkways external to development - Include in Municipal D.C.s consistent with the service standard provisions of the D.C.A., s.5(1). 6.3. Bike lanes, within road allowance, internal to development - Direct developer responsibility under s.59 of the D.C.A.(as a local service). 7. Noise Abatement Measures 7.1. Internal to Development - Direct developer responsibility though local service provisions (s.59 of D.C.A.) Watson & Associates Economists Ltd. PAGE D-3 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx 8. Traffic Control Systems 8.1. Include in D.C. calculation. 9. Land Acquisition for Road Allowances 9.1. Land Acquisition for arterial roads - Dedication under the Planning Act subdivision provisions (s.51) through development lands; in areas with limited or no development, include in Municipal D.C. (to the extent eligible). 9.2. Land Acquisition for collector roads - Dedication under the Planning Act subdivision provision (s.51) through development lands (up to 27 metre right-of-way); in areas with limited or no development, include in Municipal D.C. (to the extent eligible). 9.3. Land Acquisition for grade separations (beyond normal dedication requirements) - Include in the Municipal D.C. to the extent eligible. 10. Land Acquisition for Easements 10.1. Easement costs external to subdivisions shall be included in D.C. calculation. 11. Storm Water Management 11.1. Quality and Quantity Works, direct developer responsibility through local service provisions (s. 59 of D.C.A.). 11.2. Oversizing of stormwater management works for development external to developments will be subject to best efforts clauses by Town. 12. Parkland Development 12.1 For the purpose of parkland development, local services include the requirement for the owner to undertake preparation of the park plan, retaining necessary consultants to prepare design and grading plans for the park, prior to development. In addition, the owner is required to provide stripping and stockpiling, leveling, topsoiling, seeding and Watson & Associates Economists Ltd. PAGE D-4 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx stormwater servicing including all appurtenances (consistent with the plan), fencing the property perimeter, and provide municipal water and wastewater services to the lot line. These requirements are part of the conditions of s.51 and 53 Planning Act agreements. The municipality also requires the owner to dedicate parkland or provide cash-in-lieu, consistent with the Planning Act provisions. All of these costs are deemed a direct responsibility of the developer and have not been included in the D.C. calculation. 12.2 With respect to other parkland development costs, the municipal policy is to include all other components of parkland development in the D.C. calculation, including parking, park furniture, signage, landscaping and walkways and multi-purpose trails, in addition to the necessary fields, diamonds, playground equipment, lighting, irrigation and field houses. Watson & Associates Economists Ltd. PAGE E-1 H:\South Dundas\2024 DC\Report\2025 D.C.B.S. Report.docx Appendix E Proposed Development Charge By-law THE CORPORATION OF THE MUNICIPALITY OF SOUTH DUNDAS BY-LAW NO. 2025-XX Being a By-law to impose Development Charges in the Corporation of the Municipality of South Dundas pursuant to the Development Charges Act, S.O., 1997, c.98. WHEREAS the Development Charges Act, S.O., 1997 c.98 authorizes municipalities to pass By-laws for the imposition of development charges against land if the development of land would increase the need for services; AND WHEREAS Council wishes to ensure that the capital cost of meeting growth related demands for services is met but does not place a financial burden upon the Municipality of South Dundas' existing taxpayers, and also that new taxpayers bear no more than the net capital cost attributable to providing the current level of services; AND WHEREAS section 2(1) of the Development Charges Act, 1997, S.O., 1997, c.27 (the "Development Charges Act") enables the Council to pass By-laws for the imposition of development charges against land to pay for increased capital costs required because of increased needs for services arising from the development or redevelopment of land; AND WHEREAS the Municipality of South Dundas has undertaken a Development Charges Background Study, pursuant to s.10 of the Development Charges Act to investigate the increased need for services that will result from such development; AND WHEREAS the Municipality of South Dundas has, pursuant to s.12 of the Development Charges Act, has given notice of a public meeting in the manner and to the persons and organizations prescribed by Ontario Regulation 82/98; AND WHEREAS such public meeting was held on May 20, 2025 in the Council Chambers of the Municipality of South Dundas; AND WHEREAS the Municipality of South Dundas ensured that the proposed By-law and the background study were made available to the public at least two weeks prior to the public meeting; AND WHEREAS any person who attended the meeting was allowed to make representations in respect of the proposed development charges; AND WHEREAS Council, having reviewed the study and the proposed By-law and having considered all the representations made at the public meeting, directed that this By-law be enacted; NOW THEREFORE THE MUNICIPAL COUNCIL OF THE MUNICIPALITY OF SOUTH DUNDAS ENACTS AS FOLLOWS: 1. DEFINITIONS (1) In this By-law: a) "Accessory building" means a building or structure, or part of a building or structure, that is: (i) a parking garage that is exclusively devoted to providing vehicle parking to the main use situated on the same Site; (ii) a mechanical room that is exclusively devoted to providing heating, cooling, ventilating, electrical, mechanical or telecommunications equipment for a building or buildings that contain one or more Dwelling Units or Lodging Units situated on the same Site; (iii) an entrance way, elevator, stairwell or hallway that provides access to a Dwelling Unit or Lodging Unit, or Dwelling Units or Lodging Units, on the same Site; (iv) a pool area, change room, restroom, fitness facility, kitchen, laundry room, lounge or meeting room that is for the exclusive use of the residents of a Dwelling Unit or Lodging Unit, or Dwelling Units or Lodging Units, on the same Site; (v) a storage room that provides storage exclusively to a resident or residents of a Dwelling Unit or Lodging Unit, or Dwelling Units or Lodging Units, on the same Site; or (vi) an exterior deck, porch, canopy, gazebo, storage shed or stairway that is exclusively devoted to the use of the residents of a Dwelling Unit or Lodging Unit, or Dwelling Units or Lodging Units, on the same Site; And for the purposes of this definition, "Site" shall include common elements of the same condominium as the applicable main use, buildings, Dwelling Units or Lodging Units; b) "Accessory Use" means a use that is normally subordinate or incidental to and exclusively devoted to a principal use, building or structure on a Site that does not through any manner or design share the same gross floor area of the principal use or occupy more than the percentage of gross floor area of the Site permitted as an accessory use by the applicable zoning by-laws; c) "Act" means the Development Charges Act, 1997, S.O., 1997, c.27; d) "Additional Dwelling Unit" has the same meaning as within the Municipality's Zoning By-law as may be updated from time to time; e) "agricultural use" means the use of land and buildings for apiaries, fish farming, animal husbandry or the cultivation of trees, shrubs, flowers, grains, sod, fruits, vegetables and other crops or ornamental plants; f) "apartment" means any dwelling unit within a building containing four (4) or more dwelling units where the units are connected by an interior corridor. Despite the foregoing, an apartment dwelling includes Stacked Townhouse Dwellings and Additional Residential Units as defined in the Municipality's Zoning By-law; g) "back-to-back townhouse dwelling" means a building containing four (4) or more Dwelling Units separated vertically by a common wall, including a rear common wall, that does not have a rear yard with amenity area; h) "bedroom" means a habitable room larger than seven square metres, including a den, study or other similar area, but does not include a living room, dining room or kitchen; i) "benefitting area" means an area defined by a map, plan or legal description in a front-ending agreement as an area that will receive a benefit from the construction of a service; j) "bona fide farm uses" means the proposed development will qualify as a farm business operating with a valid Farm Business Registration Number issued by the Ontario Ministry of Agriculture, Food and Rural Affairs and be assessed in the Farmland Realty Tax Class by the Ontario Property Assessment Corporation; k) "Building Code Act" means the Building Code Act, S.O. 1992, as amended, or any successor thereof; l) "capital cost" means costs incurred or proposed to be incurred by the Municipality or a local board thereof, directly or under an agreement: (i) to acquire land or an interest therein, including the capital component of costs to acquire a leasehold interest; (ii) to improve land; (iii) to acquire, construct or improve, and the capital component cost to lease, buildings and structures; (iv) to acquire, construct or improve, and the capital component cost to lease, facilities including: 1. rolling stock with an estimated useful life of seven years or more, 2. furniture and equipment, other than computer equipment, and 3. material acquired for circulation, reference or information purposes by a library board as defined in the Public Libraries Act; (v) to undertake studies in connection with and to pay interest on money borrowed to pay for costs of any of the matters referred to in clauses (i) to (iv); (vi) to undertake the development charges background study as required under s.10 of the Act; m) "commercial" means any use of land, structures or buildings for the purposes of buying or selling commodities and services, but does not include industrial or agricultural uses, but does include hotels, motels, motor inns and boarding, lodging and rooming houses; n) "Council" means the Council of The Corporation of the Municipality of South Dundas; o) "development" means the construction, erection or placing of one or more buildings or structures on land or the making of an addition or alteration to a building or structure that has the effect of increasing the size or usability thereof, and includes redevelopment; p) "development charge" means a charge imposed with respect to growth- related net capital costs against land under this By-law; q) "dwelling unit" means a room or rooms located within a building or structure which are occupied or designed or intended to be occupied by one person or more persons as a single housekeeping unit and for which a separate private entrance (from outdoors or a common hallway), bathroom and kitchen facilities are provided; r) "duplex" means a dwelling or residential building divided horizontally into two dwelling units; s) "excess capacity" means uncommitted excess capacity but excludes uncommitted excess capacity if, either before or at the time the excess capacity was created, the Council of the Municipality expressed a clear intention that the excess capacity would be paid for by development charges or other similar charges; t) "existing industrial building" means a building used for or in connection with: (i) manufacturing, producing, processing, storing or distributing something, (ii) research or development in connection with manufacturing, producing or processing something, (iii) retail sales by a manufacturer, producer or processor of something they manufactured, produced or processed, if the retail sales are at the site where the manufacturing, production or processing takes place, (iv) office or administrative purposes, if they are, 1. carried out with respect to manufacturing, producing, processing, storage or distributing of something, and 2. in or attached to the building or structure used for that manufacturing, producing, processing, storage or distribution; Notwithstanding the foregoing, an industrial use does not include the sale of commodities to the general public through a warehouse club or self-storage facilities. u) "farm building" means that part of a bona fide farming operation encompassing barns, silos, and other ancillary development to an agricultural use, but excluding a residential use; v) "front-end payment" means a payment made by an owner pursuant to a front-ending agreement, which may be in addition to a development charge that the owner is required to pay under this By-law, to cover the net capital costs of the services designated in the agreement that are required to enable the land to be developed; w) "front-ending agreement" means an agreement made under Section 44 of the Act between the municipality and any or all owners within a benefitting area providing for front-end payments by an owner or owners or for the installation of services by an owner or owners or any combination thereof; x) "grade" with respect to a Dwelling Unit or Single Detached Dwelling means the average level of finished ground adjoining same at all exterior walls; y) "gross floor area" means the total floor area of a building or structure or part thereof, measured from the outside faces of exterior walls or between the outside faces of exterior walls and the centre line of any partition walls, and in the case of a Dwelling Unit, includes only those areas above grade. The gross floor area shall include any area which is being used for the repair or for the public sale of vehicles but shall exclude any area which is specifically designed for the parking of passenger motor vehicles; z) "growth-related net capital cost" means the portion of the net capital cost of services that is reasonably attributable to the need for such net capital cost that results or will result from the anticipated development in all or a defined part of the Township less the Township's excess capacity and the extent to which an increase in service to meet the increased need will benefit existing development within the Township; aa) "institutional" means development of a building or structure intended for use: (i) as a long-term care home within the meaning of Subsection 2 (1) of the Long-Term Care Homes Act, 2007; (ii) as a retirement home within the meaning of Subsection 2 (1) of the Retirement Homes Act, 2010. (iii) By any institution of the following post-secondary institutions for the objects of the institution: 1. a university in Ontario that receives direct, regular and ongoing operation funding from the Government of Ontario; 2. a college or university federated or affiliated with a university described in subclause (a); or 3. an Indigenous Institute prescribed for the purposes of section 6 of the Indigenous Institute Act, 2017; (iv) As a memorial home, clubhouse or athletic grounds by an Ontario branch of the Royal Canadian Legion; or (v) As a hospice to provide end of life care; bb) "local board" means a public library board or any other board, commission, committee, body or local authority established or exercising any power or authority under any general or special Act with respect to any of the affairs or purposes of the Municipality or the United Counties of Stormont, Dundas and Glengarry (the "County") or any part or parts thereof; cc) "local services" means services related to a plan of subdivision or within the area to which the plan relates, to be installed or paid for by the owner as a condition of approval under section 51 of the Planning Act, or as a condition of approval under section 53 of the Planning Act; dd) "lodging house" means a building designed or intended to contain, or containing Lodging Units where the residents share access to common areas of the building, other than the Lodging Units; ee) "lodging unit" means a room located in a lodging house which: (i) is designed to be occupied for human habitation by one resident; (ii) is not normally accessible to persons other than the resident without the permission of the resident; and (iii) may contain either cooking or sanitary facilities, but not both, for the exclusive use of the resident. A unit or room in a hotel, motel, nursing or retirement home, independent living facility on the same Site as a nursing or retirement home, hospice, rehabilitation facility, student residence where meals and supervision are available, group home, or hostel designed for human habitation shall not constitute a Lodging Unit; ff) "multiple dwelling" means all dwellings other than single detached dwellings, demi-detached dwellings, and apartment dwellings within the respective meanings ascribed hereto under this By-law; gg) "municipality" means The Corporation of the Municipality of South Dundas; hh) "net capital cost" means the capital cost less capital grants, subsidies and other contributions made to the municipality or that Council anticipates will be made, including conveyances or payments under section 43, 51 and 53 of the Planning Act in respect of the capital costs; ii) "non-profit housing development" means development of a building or structure intended for use as residential premises by: (i) a corporation to which the Canada Not-for-profit Corporation Act, 2010 applies, that is in good standing under that Act and whose primary objective is to provide housing, (ii) a corporation without share capital wo which the Canada Not- for-profit Corporation Act, 2010 applies, that is in good standing under that Act and whose primary object is to provide housing, or (iii) a non-profit housing co-operative that is in good standing under the Co-operative Corporations Act, 2022; jj) "non-residential uses" means all commercial, industrial, institutional and other uses, not included in the definition of residential use; kk) "Official Plan" means the Official Plan adopted for the United Counties of Stormont, Dundas, and Glengarry, as amended and approved; ll) "owner" means the owner of land or a person authorized by the owner who has made application for an approval for the development of land upon which a development charge is imposed; mm) "Planning Act" means the Planning Act, R.S.O. 1990, c.P.13; nn) "pre-existing development" means a use of land existing on the land at the time a development charge is payable or existing at the time of passage of this By-law; oo) "rate" means the interest rate established by the Bank of Canada on the day this By-law comes into force updated on the first business day of every January, April, July and October; pp) "regulation" means any regulation made pursuant to the Act; qq) "rental housing" means development of a building or structure with four or more dwelling units all of which are intended for use as rented residential premises; rr) "residential building" means a building containing one or more Dwelling Units with or without any Non-Residential component and in the case of a single or semi-detached dwelling or townhouse dwelling means the individual Dwelling Unit; ss) "residential use" means the use of land, buildings or structures as one or more Dwelling Units, including a Farm dwelling; tt) "row townhouse dwelling" means a building containing three or more attached dwelling units in a single row, each of which dwelling units has an independent entrance from the outside and is vertically separated from any abutting dwelling unit; uu) "semi-detached dwelling" means one dwelling unit within a building containing only two dwelling units, which is divided from the other dwelling unit by a vertical solid wall or partition extending from foundation to roof; vv) "single detached dwelling" means residential building consisting of one Dwelling unit and not attached to another structure and shall include a modular or mobile home connected to any of water, sanitary or electrical utility service; ww) "site" means a parcel of land which can be legally conveyed pursuant to section 50 of the Planning Act and includes a development having two or more consolidated under identical ownership; xx) "stacked townhouse" means a building, other than a duplex, townhouse, or back to back townhouse, containing at least 3 dwelling units; each dwelling unit separated from the other vertically and/or horizontally and each dwelling unit having a separate entrance to grade yy) "townhouse dwelling" means one Dwelling Unit within a building containing three or more Dwelling Units which is divided from the other Dwelling Units by one or more vertical solid walls or partitions extending from foundation to roof; zz) "warehousing" means a building in which the main use is the bulk storage of raw or semi-processed goods to be used in manufacturing and/or the wholesale distribution of manufactured goods and materials. PART I: APPLICATION AND EXEMPTIONS 2. IMPOSITION OF DEVELOPMENT CHARGES (1) All lands Subject to subsection (2) the development charges herein are imposed on all lands in the municipality and no lands are exempt by reason only that they are exempt from taxation under s.3 of the Assessment Act. (2) This By-law does not apply to land owned by and used for the purposes of: a) a board of education as defined by subsection 1(1) of the Education Act, R.S.O. 1990, c.E.2; b) the Municipality or any local board thereof; c) the County or any local board thereof; d) any area municipality within the Unite Counties of Stormont, Dundas, and Glengarry; and e) the Crown in right of Ontario or the Crown in right of Canada. 3. APPLICATION OF DEVELOPMENT CHARGES (1) General Application Subject to subsection (2) to (8) inclusive, development charges shall apply, and shall be calculated and collected in accordance with the provisions of this By-law, on land to be developed or redeveloped for residential and non- residential use, where: a) the development or redevelopment of the land will increase the need for services; and b) the development or redevelopment requires one or more of the approvals which follow: (i) the passing of a zoning By-law or of an amendment thereto under section 34 of the Planning Act; (ii) the approval of a minor variance under section 45 of the Planning Act; (iii) a conveyance of land to which a By-law passed under subsection 50(7) of the Planning Act applies; (iv) the approval of a plan of subdivision under section 51 of the Planning Act; (v) a consent under section 53 of the Planning Act; (vi) the approval of a description under section 50 of the Condominium Act, R.S.O. 1990, c.C.26; or (vii) the issuing of a permit under the Building Code Act, 1992, S.O. 1992, c.23 (the "Building Code"), in relation to a building or structure. (2) Where two or more of the actions described in subsection (1) are required before the land to which a development charge applies can be developed or redeveloped, only one development charge shall be imposed, calculated and collected in accordance with the provisions of this By-law. (3) Despite subsection (2), if two or more of the actions described in subsection (1) occur at different times and if the subsequent action or actions has the effect of increasing the need for services as designated in this By-law, additional development charges shall be imposed, calculated and collected in accordance with the provisions of this By-law. (4) Despite subsection (1) any subdivision agreement or development agreement made under section 51 or section 53 of the Planning Act or any predecessor thereof, which provides for the payment of a lot levy, development charge, capital contribution or other charge shall remain in full force and effect, be enforceable according to its terms and prevail to the extent that there is any conflict with this By-law. This subsection, however, shall not apply with respect to any lot or block which is further subdivided by a new plan of subdivision or consent or by a part lot control exemption By- law. (5) Subsection (1) shall not apply to: a) Farm buildings; b) a Place of worship, cemetery, and burial ground; c) Group B, Division 2 (Care and treatment occupancies) as defined on the Ontario Building Code Act. d) land vested in or leased to a university that receives regular and ongoing operating funds from the government for the purposes of post-secondary education if the development in respect of which development charges would otherwise be payable is intended to be occupied and used by the university; e) The enlargement of an existing dwelling unit; f) a second residential dwelling unit in an existing or new single detached dwelling, semi-detached dwelling, or row-townhouse dwelling on a parcel of land on which residential use, other than ancillary residential use, is permitted, if all buildings and structures ancillary to the existing or new single detached dwelling, semi-detached dwelling, or row-townhouse dwelling cumulatively contain no more than one residential dwelling unit; g) a third residential dwelling unit in an existing or new single detached dwelling, semi-detached dwelling, or row-townhouse dwelling on a parcel of land on which residential use, other than ancillary residential use, is permitted, if no building or structure ancillary to the existing or new single detached dwelling, semi-detached dwelling, or row-townhouse dwelling contains any residential dwelling units; h) one residential dwelling unit in a building or structure ancillary to an existing or new single detached dwelling, semi-detached dwelling, or row-townhouse dwelling on a parcel of land, if the existing or new single detached dwelling, semi-detached dwelling, or row-townhouse dwelling contains no more than two residential dwelling units and no other building or structure ancillary to the existing or new single detached dwelling, semi-detached dwelling, or row-townhouse dwelling contains any residential dwelling units; (i) For the purposes of Subsection 3. (6)(j) a residential Dwelling Unit in a Building or structure ancillary to an existing or new Single Detached Dwelling, Semi-Detached Dwelling, or Row- Townhouse Dwelling must be an Additional Dwelling Unit as defined herein i) in an existing rental residential building, which contains four or more residential dwelling units, the creation of the greater of one residential dwelling unit or one per cent of the existing residential dwelling units. (6) Non-Profit Housing (7) Affordable residential units required pursuant to section 34 and 16(4) of the Planning Act (Inclusionary Zoning); (8) Affordable and attainable residential units as follows: a) Affordable residential units that meet the criteria set out in subsection 4.1 (2) or 4.1 (3) of the Act shall be exempt from Development Charges b) As of the date on which subsection 4.1 (4) of the Act is proclaimed into force, attainable residential units that meet the criteria set out in subsection 4.1 (4) of the Act shall be exempt from Development Charges (9) The Development Charge payable for Rental Housing developments will be reduced based on the number of bedrooms in each unit as follows: a) Three or more bedrooms - 25% reduction; b) Two bedrooms - 20% reduction; and c) All other bedroom quantities - 15% reduction. (10) Despite anything in this By-law, there shall be an exemption from the payment of development charges for one or more enlargements of an existing industrial building up to a maximum of fifty per cent (50%) of the gross floor area of an enlargement that results in the gross floor area of the industrial building being increased by greater than fifty per cent (50%) of the gross floor area of the existing industrial building. a) For the purpose of subsection (11), despite any new sites created which result in an existing industrial building being on a site separate from its enlargement or enlargements for which an exemption was granted under this section, further exemptions if any, pertaining to the existing industrial building shall be calculated on the basis of the gross floor area of the existing industrial building prior to the first enlargement and the site prior to its division in accordance with subsection (11). 4. Development charges as set out in Sections 5 and 6 of this By-law shall apply to all lands that are developed or redeveloped for residential and non-residential use in accordance with this By-law, but only insofar as, (1) the growth-related net capital costs of services are attributable to residential and non-residential use, and (2) the growth-related net capital cost of each service is attributable to the anticipated development and at standards no higher than the average level of each such service provided by the Municipality over the 15-year period immediately preceding the preparation of the Study. 5. Residential Development Charges (1) Development charges against land to be developed or redeveloped for residential use shall be based upon the services to be provided by the Municipality which are designated in Schedule "A" attached hereto. a) Subject to the provisions of this By-law, development charges are hereby imposed against land to be developed or redeveloped for residential use and shall be calculated and collected at the rates set out in Schedule "B" attached hereto. 6. Non-Residential Development Charges (1) Development charges against land to be developed or redeveloped for non- residential use shall be based upon the services to be provided by the Township which are designated in Schedule "A" attached hereto. a. Subject to the provisions of this By-law, development charges are hereby imposed against land to be developed or redeveloped for non-residential use and shall be calculated and collected at the rate set out in Schedule "B" attached hereto. 7. Mixed Use Development Charges (1) Subject to the provisions of this By-law, development charges against land to be developed or redeveloped for mixed residential and non-residential use shall be the aggregate of the amount applicable to the residential component and the amount applicable to the gross floor area of the non-residential component. PART II: ADMINISTRATION 8. Payment (1) All development charges required to be paid to the Municipality pursuant to this By-law shall be paid by cash or cheque and directed to the Municipality's Chief Building Official. 9. Calculations (1) Subject to the provisions of this part, development charges shall be calculated and payable in full on the date that a building permit is issued in relation to a building or structure on land to which a development charge applies. (2) Where development charges apply to land where a building permit is required, no building permit shall be issued until the development charge is paid in full. (3) Notwithstanding subsection (1), development charges for rental housing and institutional developments are due and payable in 6 installments commencing with the first installment payable on the date of occupancy, and each subsequent installment, including interest in accordance with Subsection (5), payable on the anniversary date each year thereafter. (4) Notwithstanding Subsection (1), where the development of land results from the approval of a Site Plan or Zoning By-law Amendment received on or after January 1, 2020, and the approval of the application occurred within the prescribed amount of time of building permit issuance, the Development Charges under Sections 5, 6, and 7 shall be calculated based on the rates set out in Schedule "B" on the date of the planning application, including interest in accordance with Subsection 5. Where both planning applications apply, Development Charges under Sections 5, 6, and 7 shall be calculated on the rates, including interest in accordance with Subsection (5), set out in Schedule "B" on the date of the later planning application. (5) Interest for the purposes of Subsections 9. (3) and 9. (4) shall be determined as the base rate plus 1 %, where: a. The base rate shall be equal to the average prime rate on: i. October 15 of the previous year, if the adjustment date is January 1, ii. January 15 of the same year, if the adjustment date is April 1, iii. April 15 of the same year, if the adjustment date is July 1, and iv. July 15 of the same year, if the adjustment date is October 1. b. The average prime rate, on a particular date means, the mean, rounded to the nearest hundredth of a percentage point, of the annual rates of interest announced by each of the Royal Bank of Canada, The Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, the Bank of Montreal and The Toronto-Dominion Bank to be its prime or reference rate of interest in effect on that date for determining interest rates on Canadian dollar commercial loans by that bank in Canada. (6) If a development of land does not require the issuing of a building permit and requires one of the approvals listed in subsection 3.1b)(i) to (vi) inclusive, the development charge, subject to subsection 3.(1)(b) shall be payable and shall be calculated and collected on such date as may be determined by the approving authority. 10. Credits (1) The Municipality may, by agreement, permit the owner of land to which development charges apply to provide services for development or redevelopment of that land in lieu of the payment of all or any portion of a development charge, including services additional to or of a greater size or capacity than is required under this By-law ("services in lieu"). (2) Upon proof of the installation or construction of services in lieu to the satisfaction of the Municipality, a credit, without interest, shall be applied against development charges payable for an amount equal to the reasonable cost to the owner for providing services in lieu, as determined by the Municipality not to exceed the total amount of the development charges otherwise payable. (3) Any unused credit may be applied, upon proof satisfactory to the Municipality 's Chief Building Official, to any subsequent development charge payable with respect to the same land as referred to in subsection (1). 11. Redevelopment Allowances (1) Where there is a redevelopment, conversion, demolition, or change of use of a building or structure or part thereof, the Development Charges payable by the new or proposed development shall be credited by the amount to which the previous use of the building or structure was subject to Development Charges at the time this By-law was passed. (2) With respect to a residential building or structure or the residential portion of a mixed-use building or structure that has been demolished or converted, the credit shall by calculated by multiplying the number of dwelling units demolished or converted within five years of the date of building permit application by the Development Charge for the relevant demolished units in accordance with Schedule "B" of this By-law. (3) With respect to a non-residential building or structure or the non-residential portion of a mixed-use building or structure that has been demolished or converted, the credit shall by calculated by multiplying the Gross Floor Area of that portion of the building demolished or converted within five years of the date of building permit application by the Development Charge for the relevant demolished units in accordance with Schedule "B" of this By-law. (4) The credit with respect to a redevelopment, conversion, demolition, or change of use of a building or structure or part thereof shall not exceed the amount of the Development Charges payable with respect to new or proposed development. (5) No credit shall be given with respect to the redevelopment, conversions, demolition, or change of use of a building or structure or part thereof where the existing building or structure or part thereof would have been exempt from Development Charges in accordance with this By-law. (6) If, after constructing a second dwelling unit on a property, the first dwelling unit is converted to an Additional Dwelling Unit, then development charges shall not be applied to the new dwelling unit. (7) Notwithstanding subsection 11 (1) to 11 (6) above, where the Building cannot be demolished until the new Building has been erected, the Owner shall notify the Municipality in writing and pay the applicable Development Charge for the new Building in full and, if the existing Building is demolished not later than twelve (12) months from the date a building permit is issued for the new Building, the Municipality shall provide a refund calculated in accordance with this section to the Owner without interest. If more than twelve (12) months is required to demolish the existing Building, the Owner may make a written request to the Municipality and the Municipality's Treasurer or designate, in his or her sole and absolute discretion and upon such terms and conditions as he or she considers necessary or appropriate, may extend the time in which the existing Building must be demolished, and such decision shall be made prior to the issuance of the first building permit for the new Building. (8) Notwithstanding subsection 11 (1) to 11 (6) above, if a building is destroyed by unintended consequences, such as fire, the Owner may make a written request to the Municipality's Treasurer to have the period between demolition and building permit issuance extended beyond five years. 12. Reserve Funds (1) Monies received from payment of development charges shall be maintained in a separate reserve fund or funds and shall be used only to meet growth- related net capital costs for which the development charge was imposed under this By-law. (2) Income received from investments of the development charge reserve fund or funds shall be credited to the development charge reserve fund or funds in relation to which the investment income applies. (3) Where any development charge, or part thereof, remains unpaid after the due date, the amount unpaid shall be added to the tax roll and shall be collected as taxes. (4) Where any unpaid development charges are collected as taxes under Subsection (3), the monies so collected shall be credited to the development charge reserve fund or funds referred to in subsection 1. 13. This By-law shall be administered by the Municipality 's Treasurer and Chief Building Official. 14. Annual Adjustment (1) The development charges set out in sections 5, 6, and 7 and Schedule "B" attached hereto shall be adjusted annually without amendment to this By-law, as of the 1st day of January in each year, commencing on January 1, 2026, in accordance with the most recent Statistics Canada Quarterly, Non- Residential Building Construction Price Index. (2) The minimum interest rate that the Municipality shall pay under subsection 18(3) and 25(2) of the Development Charges Act in relation to a development charges By-law shall be the Bank of Canada interest rate on the day the By- law comes into force and thereafter as such rate is adjusted on the first business day of every January, April, July and October thereafter for the life of this By-law. 15. Term (1) This By-law shall come into force and effect on the 16th day of July 2025. (2) This By-law shall continue in force and effect for a term not to exceed ten years from the date of its enactment unless it is repealed or replaced at an earlier date by a subsequent By-law. 16. Nothing in this By-law shall be construed so as to commit or require the Municipality or its Council to authorize or proceed with any specific capital project at any specific time. 17. Each and every provision of this By-law is severable and, if any provision or provisions of this By-law should, for any reason, be declared invalid by any court, it is the intention of Council that each and every of the then remaining provisions of this By-law shall remain in full force and effect. 18. This By-law may be cited as the "Municipality of South Dundas Development Charges By-law, 2025". READ and passed in Open Council, signed and sealed this 16th day of May 2025. ___________________________ ___________________________ Mayor Clerk THE CORPORATION OF THE MUNICIPALITY OF SOUTH DUNDAS BY-LAW NO. 2025-XX SCHEDULE "A" Services and Classes of Services 1. Services Related to a Highway; 2. Fire Protection Services; 3. Parks and Recreation Services; and 4. Growth-Related Studies. THE CORPORATION OF THE MUNICIPALITY OF SOUTH DUNDAS BY-LAW NO. 2025-XX SCHEDULE "B" SCHEDULE OF DEVELOPMENT CHARGES NON-RESIDENTIAL Single and Semi- Detached Dwelling Other Multiples Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom (per sq.ft. of Gross Floor Area) Municipal Wide Services/Class of Service: Fire Protection Services 2,602 2,140 1,792 1,296 1.15 Services Related to a Highway 750 617 517 374 0.33 Parks and Recreation Services 6,889 5,667 4,746 3,432 0.39 Growth-Related Studies 282 232 194 141 0.05 Total Municipal Wide Services/Class of Services 10,523 8,656 7,249 5,243 1.92 RESIDENTIAL Service/Class of Service