Southgate 2026 Development Charges Background Study

Southgate, Ontario · summary & facts

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Watson & Associates Economists Ltd. 905-272-3600 September 24, 2026 [email protected] 2026 Development Charges Background Study Township of Southgate ________________________ Final Report Watson & Associates Economists Ltd. 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 Recent Changes to the D.C.A. ................................................................ 1-3 2. Current Township of Southgate D.C. Policies .............................................. 2-1 2.1 Schedule of Charges .............................................................................. 2-1 2.2 Services Covered ................................................................................... 2-1 2.3 Timing of D.C. Calculation and Payment ................................................ 2-2 2.4 Indexing .................................................................................................. 2-3 2.5 Redevelopment Allowance ..................................................................... 2-3 2.6 Exemptions ............................................................................................. 2-4 3. Anticipated Development in the Township of Southgate............................. 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 ................................................................................ 4-5 4.5 Capital Forecast ...................................................................................... 4-6 4.6 Treatment of Credits ............................................................................... 4-6 4.7 Classes of Services ................................................................................ 4-7 4.8 Existing Reserve Funds .......................................................................... 4-7 4.9 Deductions .............................................................................................. 4-8 4.9.1 Reduction Require by Historical Level of Service Ceiling .......... 4-9 Table of Contents (Cont'd) Page Watson & Associates Economists Ltd. 4.9.2 Reduction for Uncommitted Excess Capacity ............................ 4-9 4.9.3 Reduction for Benefit to Existing Development ........................ 4-10 4.9.4 Reduction for Anticipated Grants, Subsidies, and Other Contributions ............................................................................ 4-11 4.10 Township-Wide vs. Area-Specific ......................................................... 4-11 4.11 Allocation by Type of Development ...................................................... 4-11 4.12 Asset Management ............................................................................... 4-11 5. Development Charge Eligible Cost Analysis by Service and Class of Services ............................................................................................................ 5-1 5.1 Introduction ............................................................................................. 5-1 5.2 Service Levels and Buildout Capital Costs for Township-wide Development Charge Services and Class of Services Calculation ......... 5-1 5.2.1 Services Related to a Highway .................................................. 5-1 5.2.2 Fire Protection Services ............................................................. 5-2 5.2.3 Parks and Recreation Services .................................................. 5-3 5.2.4 Library Services ......................................................................... 5-3 5.2.5 Waste Diversion Services .......................................................... 5-4 5.2.6 Land Acquisition ......................................................................... 5-4 5.2.7 Growth-Related Studies (Class of Services) .............................. 5-5 5.3 Urban Buildout Capital Costs for Township Urban Service Development Charge Services Calculation ........................................... 5-14 5.3.1 Stormwater Services ................................................................ 5-14 5.3.2 Wastewater Services ............................................................... 5-14 5.3.3 Water Services ......................................................................... 5-14 6. Development Charge Calculation .................................................................. 6-1 7. Development Charge Policy Recommendations and By-law Rules ............ 7-1 7.1 Introduction ............................................................................................. 7-1 7.2 Development Charge By-law Structure ................................................... 7-2 7.3 D.C. By-law Rules ................................................................................... 7-2 7.3.1 Payment in any Particular Case ................................................. 7-2 7.3.2 Determination of the Amount of the Charge ............................... 7-3 7.3.3 Application to Redevelopment of Land (Demolition and Conversion) ................................................................................ 7-3 7.3.4 Exemptions (full or partial) ......................................................... 7-4 7.3.5 Timing of Collection ................................................................... 7-5 7.3.6 Indexing ..................................................................................... 7-6 7.3.7 Development Charge Spatial Applicability ................................. 7-6 7.4 Other D.C. By-law Provisions ................................................................. 7-7 Table of Contents (Cont'd) Page Watson & Associates Economists Ltd. 7.4.1 Categories of Services for Reserve Fund and Credit Purposes .................................................................................... 7-7 7.4.2 By-law In-force Date .................................................................. 7-8 7.4.3 Minimum Interest Rate Paid on Refunds and Charged for Inter-Reserve Fund Borrowing ................................................... 7-8 7.5 Other Recommendations ........................................................................ 7-8 8. Asset Management Plan ................................................................................. 8-1 8.1 Introduction ............................................................................................. 8-1 8.2 Asset Management Plan ......................................................................... 8-3 9. By-law Implementation ................................................................................... 9-1 9.1 Introduction ............................................................................................. 9-1 9.1.1 Public Meeting of Council........................................................... 9-1 9.1.2 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 Historical Level of Service Calculations ............................................ B-1 Appendix C Long-Term Capital and Operating Cost Examination ...................... C-1 Appendix D Local Service Policy ............................................................................ D-1 Appendix E Changes to the D.C.A. .......................................................................... E-1 E.1 Changes to the D.C.A.: Bill 213 and Bill 109 ............................................... E-2 E.1.1 Bill 213: Better for People, Smarter for Business Act, 2020 ....... E-2 E.1.2 Bill 109: More Homes for Everyone Act, 2022 ........................... E-2 E.2 Changes to the D.C.A. - Bill 23: More Homes Built Faster Act, 2022 ..... E-3 E.2.1 Additional Residential Unit Exemption ...................................... E-3 E.2.2 Removal of Housing as an Eligible D.C. Service ...................... E-3 E.2.3 New Statutory Exemption for Non-Profit Housing ..................... E-4 E.2.4 New Statutory Exemptions for Affordable Units, Attainable Units, and Affordable Inclusionary Zoning Units ........................ E-4 Table of Contents (Cont'd) Page Watson & Associates Economists Ltd. E.2.5 Historical Level of Service Extended to 15-Year Period Instead of the Historical 10-Year Period .................................... E-5 E.2.6 Revised Definition of Capital Costs ........................................... E-5 E.2.7 Mandatory Phase-in of a D.C. ................................................... E-5 E.2.8 D.C. By-law Expiry .................................................................... E-5 E.2.9 Installment Payments ................................................................ E-5 E.2.10 Rental Housing Discount ........................................................... E-6 E.2.11 Maximum Interest Rate for Instalments and Determination of Charge for Eligible Site Plan and Zoning By-law Amendment Applications ........................................................... E-6 E.2.12 Requirement to Allocate Funds Received .................................. E-6 E.2.13 Bill 134: Affordable Homes and Good Jobs Act, 2023 ............... E-6 E.3 Bill 185: Cutting Red Tape to Build More Homes Act ............................. E-9 E.3.1 Revised Definition of Capital Costs ........................................... E-9 E.3.2 Removal of the Mandatory Phase-in ......................................... E-9 E.3.3 Process for Minor Amendments to D.C. By-laws .................... E-10 E.3.4 Reduction of D.C. Rate Freeze Timeframe ............................. E-10 E.3.5 Modernizing Public Notice Requirements ............................... E-11 E.4 Bill 17: Protect Ontario by Building Faster and Smarter Act, 2025 ........ E-11 E.4.1 Deferral of Residential D.C. Payments to Occupancy .............. E-11 E.4.2 Removal of Interest for Legislated Instalments ........................ E-12 E.4.3 Early Payment for Residential/Institutional ............................... E-12 E.4.4 Exemption for Long-term Care Homes .................................... E-12 E.4.5 Revised Definition of Capital Costs .......................................... E-12 E.4.6 Expanded Simplified D.C. By-law Amendment Process .......... E-12 E.4.7 Lower Charge - Current vs. Rate Freeze ................................ E-12 E.4.8 Grouping of Services for the Purposes of Using Credits .......... E-13 E.4 Bill 60: Fighting Delays, Building Faster Act, 2025 ............................... E-13 E.4.1 Addition of Class of Service for Land Acquisition ..................... E-13 E.4.2 Required Timelines for the Annual Treasurer's Statement ...... E-14 E.4.3 Addition of Requirements for Local Service Policies ................ E-14 E.4.4 Requirement to Provide Documents to the Minister ................. E-15 E.4.5 Regulatory Changes ................................................................ E-15 Appendix F Benefit to Existing Methodology ......................................................... F-1 Appendix G Proposed D.C. By-law ......................................................................... G-1 Watson & Associates Economists Ltd. List of Acronyms and Abbreviations Acronym Full Description of Acronym A.M.P. Asset management plan B.T.E. Benefit to existing D.C. Development charge D.C.A. Development Charges Act, 1997, as amended F.I.R. Financial Information Return G.F.A. Gross floor area N.F.P.O.W. No fixed place of work O.L.T. Ontario Land Tribunal O. Reg. Ontario Regulation P.O.A. Provincial Offences Act P.P.U. Persons per unit sq.ft. square foot sq.m square metre Executive Summary Watson & Associates Economists Ltd. PAGE i Executive Summary 1. The report provided herein represents the Development Charges (D.C.) Background Study for the Township of Southgate required by the Development Charges Act, 1997, as amended (D.C.A.). This report has been prepared in accordance with the methodology required under the D.C.A. The contents include the following: - Chapter 1 - Introduction: Outlines the purpose of the study, the legislative process, and recent changes to the D.C.A. - Chapter 2 - Current D.C. Policies: Summarizes the Township's existing D.C. by-law, rates, and policy framework. - Chapter 3 - Anticipated Development: Reviews expected residential and non-residential growth that drives infrastructure needs. - Chapter 4 - Approach to the Calculation: Explains the legislated methodology used to estimate the increase in service needs and to calculate eligible capital costs. - Chapter 5 - D.C.-Eligible Cost Analysis: Provides the development-related capital programs over the buildout periods for all eligible services. - Chapter 6 - Development Charge Calculation: Presents the resulting D.C. rates for each development type and class of service. - Chapter 7 - Policy Recommendations and By-law Rules: Sets out the recommended rules governing calculation, collection, exemptions, indexing, and application. - Chapter 8 - Asset Management Plan: Demonstrates that the assets funded through D.C.s are financially sustainable over their lifecycle. - Chapter 9 - By-law Implementation: Reviews the mandatory public process, appeal mechanisms, and administrative requirements associated with adopting the new D.C. by-law. 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 and a simplified summary is provided below. 1) Identify amount, type and location of growth. Watson & Associates Economists Ltd. PAGE ii 2) Identify servicing needs to accommodate growth. 3) Identify capital costs to provide services to meet the needs. 4) Deduct: - Grants, subsidies and other contributions; - Benefit to existing development; - Amounts in excess of 15-year historical service calculation; and - D.C. reserve funds (where applicable); 5) Net costs are then allocated between residential and non-residential benefit; and 6) Net costs are divided by the growth to provide the D.C. 3. Several changes to the D.C.A. have occurred since the passage of the Township's last D.C. Background Study. These changes include additional mandatory exemptions, discounts, and limitations on imposing D.C.s. Further discussion is provided in Chapter 1, and a detailed summary of the changes is provided in Appendix E. 4. The growth forecast utilized in the background study forecasts population, housing, and non-residential employment and floor area for the 10-year (2026 to 2036) and buildout (2026 to buildout) forecast periods. Tables ES-1 and ES-2 summarize the residential and non-residential development. Watson & Associates Economists Ltd. PAGE iii Table ES-1 Summary of Residential Development in the Township of Southgate [1] Includes townhouses and apartments in duplexes. [2] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units. [3] Buildout growth forecast assumes the Dundalk urban area is built-out. Source: Watson & Associates Economists Ltd 2026 - 2036 620 222 44 886 2,398 -370 2,028 2026 - Buildout[3] 1,888 679 160 2,727 7,349 -1,408 5,940 2026 - 2036 150 0 0 150 468 -167 301 2026 - Buildout[3] 308 0 0 308 960 -637 324 2026 - 2036 770 222 44 1,036 2,866 -537 2,329 2026 - Buildout[3] 2,196 679 160 3,035 8,309 -2,045 6,264 Development Timing Single & Semi- Detached Multiples[1] Apartments[2] Total Gross Population Existing Unit Net Population Increase Location Residential Units In New Units Population Change Dundalk Rural Area Township of Southgate Watson & Associates Economists Ltd. PAGE iv Table ES-2 Summary of Non-Residential Development in the Township of Southgate [1] Square Foot Per Employee Assumptions Primary 3,000 Industrial 1,650 Industrial - Dundalk 1,300 Industrial - Rural Area 2,775 Commercial/Population-Related 500 Institutional 850 [2] Primary industry includes agriculture and resource related employment. [3] Institutional square feet per employee varies by growth period due to the development of a secondary school in the 2026 to 2036 growth forecast period. [4] Employment Increase does not include No Fixed Place of Work. [5] Buildout growth forecast assumes the Dundalk urban area is built-out. *Reflects Mid-2026 to Buildout forecast period. Note: Numbers may not add up precisely due to rounding. Source: Watson & Associates Economists Ltd 2026 - 2036 178,100 128,000 84,300 390,400 476 2026 - Buildout[5] 1,171,700 212,000 104,600 1,488,300 1,448 2026 - 2036 51,000 416,300 12,500 - 479,800 192 2026 - Buildout[5] 135,000 777,000 25,500 - 937,500 376 2026 - 2036 51,000 594,400 140,500 84,300 870,200 668 2026 - Buildout[5] 135,000 1,948,700 237,500 104,600 2,425,800 1,824 Dundalk Development Location Timing Primary G.F.A. S.F.[1],[2] Industrial G.F.A. S.F.[1] Commercial G.F.A. S.F.[1] Institutional G.F.A. S.F.[1],[3] Total Non- Residential G.F.A. S.F. Employment Increase[4] Rural Area Township of Southgate Watson & Associates Economists Ltd. PAGE v 5. 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 services and classes of service are calculated based on a buildout forecast: - Services Related to a Highway; - Fire Protection Services; - Parks and Recreation Services; - Waste Diversion Services; - Library Services; - Land Acquisition; - Stormwater Services, - Water Services; and - Wastewater Services. A summary of the total growth-related costs is provided below in Table ES-3. Table ES-3 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 89,589,000 Less: Benefit to Existing Development (inclusive of reserve fund surpluses) 26,505,000 Less: Other Deductions 405,000 Less: Post Period Benefit Deductions 0 Less: Grants, Subsidies and Other Dedcutions 4,188,000 Net Costs to be Recovered from Development Charges 60,594,000 Based on the above table, the total growth-related costs are $89.6 million over the forecast periods of which $60.6 million (68%) is recoverable from D.C.s. Of the net $60.6 million included in the calcualtion, $50.4 million is recoverable from residential development and $10.2 million from non-residential development. It is noted also that any exemptions or reductions in the charges would reduce this Watson & Associates Economists Ltd. PAGE vi recovery further. This suggests that non-D.C. costs over the forecast period will total $29.0 million. 6. Chapter 6 includes a calculation of charges based on the anticipated development summarized in Tables ES-1 and ES-2 and the future identified needs presented in Table ES-3. Charges have been provided on a Township- wide basis and urban serviced area for water, wastewater and stormwater. The schedule of charges is presented in Table ES-4. Comparisons of calculated single detached charges and non-residential charges to current are presented in Table ES-5 and Table ES-6. Table ES-4 Calculated Schedule of Charges (2026$) Single and Semi- Detached Dwelling Other Multiples Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom (per sq.ft. of Gross Floor Area) Wind Turbines Solar Farm (per 500 kW) Municipal Wide Services/Class of Service: Services Related to a Highway 3,650 2,092 2,011 1,357 1.20 3,650 3,650 Fire Protection Services 1,655 949 912 615 0.54 1,655 1,655 Parks and Recreation Services 4,905 2,811 2,703 1,823 0.28 - - Library Services 1,272 729 701 473 0.07 - - Waste Diversion 51 29 28 19 0.02 - - Growth Studies 94 54 52 35 0.10 94 94 Land Acquisition 114 65 63 42 0.04 114 114 Total Municipal Wide Services/Class of Services 11,741 6,729 6,470 4,364 2.25 5,513 5,513 Urban Services Stormwater Drainage and Control Services 722 414 398 268 0.29 - - Wastewater Services - - - - - - - Water Services 7,490 4,293 4,127 2,784 2.96 - - Total Urban Services 8,212 4,707 4,525 3,052 3.25 - - GRAND TOTAL RURAL AREA 11,741 6,729 6,470 4,364 2.25 5,513 5,513 GRAND TOTAL URBAN AREA 19,953 11,436 10,995 7,416 5.50 5,513 5,513 RESIDENTIAL Service/Class of Service NON-RESIDENTIAL Watson & Associates Economists Ltd. PAGE vii Table ES-5 Single Detached Residential House D.C. Comparison (2026$) Table ES-6 Non-Residential House D.C. Comparison per sq.ft. of Gross Floor Area (2026$) 7. Chapter 7 outlines the D.C. by-law policy recommendations and rules as summarized below: - Timing of Collection: Service/Class of Service Current Calculated Change ($) Change (%) Municipal Wide Services/Classes: Services Related to a Highway 4,092 3,650 (442) -11% Fire Protection Services 1,427 1,655 228 16% Parks and Recreation Services 3,628 4,905 1,277 35% Library Services 1,127 1,272 145 13% Waste Diversion 228 51 (177) -78% Growth Studies 154 94 (60) -39% Land Acquisition - 114 114 n/a Total Municipal Wide Services/Classes 10,657 11,741 1,084 10% Area Specific Services: Stormwater Drainage and Control Services 17 722 705 4086% Wastewater Services 4,061 - (4,061) -100% Water Services 7,411 7,490 79 1% Total Area Specific Services 11,490 8,212 (3,278) -29% Grand Total - Urban Area 22,147 19,953 (2,194) -10% Service/Class of Service Current Calculated Change ($) Change (%) Municipal Wide Services/Classes: Services Related to a Highway 1.51 1.20 (0.31) -21% Fire Protection Services 0.53 0.54 0.01 2% Parks and Recreation Services 0.32 0.28 (0.04) -12% Library Services 0.11 0.07 (0.04) -34% Waste Diversion 0.08 0.02 (0.06) -75% Growth Studies 0.05 0.10 0.05 88% Land Acquisition - 0.04 0.04 n/a Total Municipal Wide Services/Classes 2.60 2.25 (0.35) -13% Area Specific Services: Stormwater Drainage and Control Services 0.01 0.29 0.28 2085% Wastewater Services 1.60 - (1.60) -100% Water Services 3.75 2.96 (0.79) -21% Total Area Specific Services 5.37 3.25 (2.12) -39% Grand Total - Urban Area 7.97 5.50 (2.47) -31% Watson & Associates Economists Ltd. PAGE viii 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 o Non-Rental residential development to pay D.C.s at timing of occupancy permit - 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 o Long-term care homes o Non-profit retirement homes - 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 A place of worship, cemetery, or burial ground; o A public hospital under the Public Hospitals Act; Watson & Associates Economists Ltd. PAGE ix o Non-residential farm buildings; o Temporary uses; and o Non-Profit Housing meeting the requirements of a program for such purposes as administered by any agency of the Federal or Provincial government, Grey County, or the Township. - Where redevelopment occurs within the Township, and the previously existing structure existed on the same land within the last 60 months, redevelopment credits will be assessed in accordance with the rules set out in the D.C. by- law. - Charges to be indexed annually on January 1st, in accordance with the D.C.A. - The D.C. by-law will come into force at the time of by-law passage. 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 G. These decisions may include: - adopting the charges and policies recommended herein; - considering additional exemptions to the by-law; and - considering reductions in the charge by class of development (e.g., obtained by removing certain services on which the charge is based and/or by a general reduction in the charge) Report Watson & Associates Economists Ltd. Chapter 1 Introduction Watson & Associates Economists Ltd. PAGE 1-1 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 Township of Southgate (Township). The Township retained Watson & Associates Economists Ltd. (Watson) to undertake the D.C. study process. Watson worked with senior staff of the Township and Council 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 Township'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 G). 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 1.2 Summary of the Process A public meeting required under Section 12 of the D.C.A. will be scheduled at least two weeks after the posting of the D.C. background study and draft D.C. by-law on the Township'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 Township. 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. Data collection and staff interviews and preparation od D.C. growth forecast January 2025 to August 2026 2. Presentation of draft findings and D.C. policy discussion with Township Staff August 2026 3. D.C. Background Study and draft D.C. by-law available to public To be determined 4. Public Meeting of Council To be determined. At least 2 weeks after the Watson & Associates Economists Ltd. PAGE 1-3 Process Steps Dates background study and draft by-law are publicly available 5. D.C. By-law passage To be determined. At least 60 days after the background study and draft by-law are publicly available 6. Newspaper notice given of by-law passage By 20 days after passage 7. Last day for by-law appeal 40 days after passage 8. Township makes available D.C. pamphlet by 60 days after in force date 1.3 Recent Changes to the D.C.A. Since the passage of the Township's previous by-law, there have been a number of changes to the D.C.A. These changes include various additional mandatory exemptions, discounts, and limitations on imposing D.C.s. A high-level summary is provided below and a detailed summary of the changes is provided in Appendix E. - Bill 109: More Homes for Everyone Act, 2022 - additional reporting requirements for the Annual Treasurer's statement on D.C. reserve funds; - Bill 23: More Homes Built Faster Act, 2022 - additional mandatory exemptions, discounts, and other changes: o Additional Residential Unit Exemption - add up to 2 units in a detached, semi-detached, or rowhouse within certain parameters and the units are exempt; Watson & Associates Economists Ltd. PAGE 1-4 o Housing was removed as a D.C. eligible service; o New exemption for Non-profit Housing; o New exemption for Affordable and Attainable Units; o New exemption for affordable units required through Inclusionary Zoning; o Extension of the historical level of service calculations from 10 years to 15 years; o Revised definition of capital costs and a mandatory phase-in (later reversed by Bill 185); o Extension of the by-law expiry requirements from 5 years to 10 years; o Discount for rental housing based on the number of bedrooms (15% to 25%); o Maximum interest rate for instalment payments and the rate freeze; and o Requirement to spend or allocate at least 60% of reserve funds for water, wastewater, and services related to a highway; - Bill 134: Affordable Homes and Good Jobs Act, 2023 - refinement to the definition of affordable housing for the purposes of the exemption; - Bill 185: Cutting Red Tape to Build More Homes Act, 2024 - reversal of changes from Bill 23 and public process changes: o Revised definition of capital costs to reinclude growth-related studies; o Removed the mandatory phase-in from Bill 23; o Introduced a streamlined process for minor by-law amendments; o Reduced the rate freeze timing from 2 years to 18 months; and o Modernized public notice requirements in certain instances. - Bill 17: Protect Ontario by Building Faster and Smarter Act, 2025 - introduces additional exemptions, changes to the timing of payment for residential D.C.s, and provides regulatory authority to make future changes; o Exemption for long-term care homes; o Change in definition of capital costs to allow changes via regulation; o Expansion of the simplified by-law amendment process to include scenarios where D.C.s are reduced; o Requirement to impose the lower of the current D.C. or the rate freeze (with interest); o Allowance for regulation to group services together for the purposes of D.C. credits. Watson & Associates Economists Ltd. PAGE 1-5 o Deferral of D.C.s to occupancy for all residential development; o Removal of interest for legislated instalments; o The ability for applicants to pay earlier than is required through instalments or payment at occupancy without the need for an early payment agreement; and o Ontario Regulation 164/25 - Introduction of London Series for the purposes of indexing a D.C. by-law and expansion of the requirement to spend or allocate 60% of reserve fund balances to all services. - Bill 60: Fighting Delays, Building Faster Act, 2025 and Regulatory Changes - introduces class of service for land acquisition and other reporting requirements; o Addition of class of service for land acquisition (with removal of land costs from level of service calculations); o Additional requirements related to providing a local service policy; o Merging of credits for water supply services and wastewater services; o Requirement to provide greater details in background study with respect to how growth-related and non-growth-related shares of costs are determined; o Additional requirements to provide documents to the Minister; o Deadlines provided for Treasurer's Statement completion and submission of documents to the Minister of Municipal Affairs and Housing; and o Additional reporting requirements for the Treasurer's Statement. - Bill 98: Building Homes and Improving Transportation Infrastructure Act, 2026 - introduces an exemption for non-profit retirement homes Watson & Associates Economists Ltd. Chapter 2 Current Township of Southgate D.C. Policy Watson & Associates Economists Ltd. PAGE 2-1 2. Current Township of Southgate D.C. Policies 2.1 Schedule of Charges The Township currently imposes charges through By-law 2022-154 under the D.C.A. By-law 2022-154 was passed on October 6, 2022. The by-law imposes D.C.s for residential and non-residential uses. The table below provides the rates currently in effect. Table 2-1 Township of Southgate Current D.C. Rates 2.2 Services Covered The following services are covered under By-law 2022-154: Township-wide Services: - Services Related to a Highway; - Fire Protection Services; - Parks and Recreation Services; - Library Services; - Waste Diversion Services; and Urban Services: Single and Semi-Detached Dwelling Other Multiples Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom (per sq.ft. of Gross Floor Area) Wind Turbines Solar Farm (per 500 kW) Municipal Wide Services/Class of Service: Services Related to a Highway 4,092 2,557 2,615 1,746 1.51 4,090 4,090 Fire Protection Services 1,427 891 912 609 0.53 1,427 1,427 Parks and Recreation Services 3,628 2,268 2,319 1,549 0.32 - - Library Services 1,127 704 720 481 0.11 - - Waste Diversion Services 228 142 146 97 0.08 - - Growth Studies 154 96 98 65 0.05 154 154 Total Municipal Wide Services/Class of Services 10,657 6,658 6,811 4,548 2.60 5,671 5,671 Urban Services Stormwater 17 11 11 8 0.01 - - Wastewater Services 4,061 2,538 2,596 1,731 1.60 - - Water Services 7,411 4,631 4,737 3,160 3.75 - - Total Urban Services 11,490 7,180 7,344 4,899 5.37 - - GRAND TOTAL RURAL AREA 10,657 6,658 6,811 4,548 2.60 GRAND TOTAL URBAN AREA 22,147 13,838 14,155 9,447 7.97 Service/Class of Service RESIDENTIAL NON-RESIDENTIAL Watson & Associates Economists Ltd. PAGE 2-2 - Stormwater Services; - Wastewater Services; and - Water Services. 2.3 Timing of D.C. Calculation and Payment D.C.s are calculated and payable on the date that the first building permit is issued in relation to a building or structure on land to which the D.C. relates. Where D.C.s apply to land in relation to which a building permit is required, the building permit shall not be issued until the D.C. has been paid in full. D.C.s for developments proceeding through Site Plan or Zoning By-law Amendment application are frozen at the time the application is submitted. Once the application is approved, the applicant has 18 months to obtain the building permits related to the development, otherwise, the current D.C. is applicable. D.C.s for rental housing and institutional development shall be paid in 6 equal annual instalments, with the first payment due upon occupancy or occupancy permit. Council from time to time, and at any time, may enter into agreements providing for all or any part of a development charge to be paid before or after it would otherwise be payable, in accordance with section 27 of the D.C.A. Note: additional legislative changes have been provided with respect to timing of payment (e.g. non-rental residential D.C.s are now payable at occupancy). Further details are provided in Chapter 7 and Appendix E. Watson & Associates Economists Ltd. PAGE 2-3 2.4 Indexing Indexing of the D.C.s shall be implemented annually each January 1st, in accordance with the Statistics Canada Quarterly, Non-Residential Building Construction Price Index (Table 18-10-0276-02).[1] 2.5 Redevelopment Allowance As a result of the redevelopment of land, a building or structure existing on the same land within 60 months (five years) prior to the date of payment of D.C.s in regard to such redevelopment was, or is to be demolished, in whole or in part, or converted from one principal use to another principal use on the same land, in order to facilitate the redevelopment, the D.C.s otherwise payable with respect to such redevelopment shall be reduced by the following amounts: (a) in the case of a residential building or structure, or in the case of a mixed-use building or structure, the residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable D.C.s by the number, according to type, of dwelling units that have been or will be demolished or converted to another principal use; and (b) in the case of a non-residential building or structure or, in the case of mixed-use building or structure, the non-residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable D.C.s by the gross floor area that has been or will be demolished or converted to another principal use; provided that such amounts shall not exceed, in total, the amount of the D.C.s otherwise payable with respect to the redevelopment. [1] Ontario Regulation (O. Reg.) 82/98 referenced "The Statistics Canada Quarterly, Construction Price Statistics, catalogue number 62-007" as the index source. Since implementation, Statistics Canada has modified this index twice and the above-noted index is the most current. The draft by-law provided herein refers to O. Reg. 82/98 to ensure traceability should this index continue to be modified over time. Watson & Associates Economists Ltd. PAGE 2-4 2.6 Exemptions The following non-statutory exemptions are provided under By-law 2022-154: - Non-residential farm building for a bona fide farm use, with a valid Farm Business Registration Number and assessed as Farmland Realty Tax Class; - Places of worship, cemetery or burial ground exempt from taxation under the Assessment Act; - Hospitals under the Public Hospitals Act; and - The first 2,500 square feet of non-residential gross floor area for a new building within the Urban Area. - Temporary buildings or structures o Prior to the issuance of a building permit for a temporary building or structure, the Township may require an owner to enter into an agreement, including the provision of security for the owner's obligation under the agreement, pursuant to section 27 of the Act providing for all or part of the development charge that would be required by Subsection 3.8, 3.9, or 3.10 if the terms of the agreement are not met and the building is not removed by the agreed upon date. The terms of such agreement shall then prevail over the provisions of By-law 2022- 154. - Non-Profit Housing meeting the requirements of a program for such purposes as administered by any agency of the Federal or Provincial government, Grey County, or the Township. o Prior to the issuance of a building permit for a non-profit housing, the Township may require an owner to enter into an agreement, including the provision of security for the owner's obligation under the agreement, pursuant to section 27 of the Act providing for all or part of the development charge that would be required by Subsection 3.8, 3.9, or 3.10 if the terms of the agreement are not met. The terms of such agreement shall then prevail over the provisions of By-law 2022-154. Watson & Associates Economists Ltd. Chapter 3 Anticipated Development in the Township of Southgate Watson & Associates Economists Ltd. PAGE 3-1 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Township of Southgate - 2026 Development Charges Background Study - FINAL.docx 3. Anticipated Development in the Township of Southgate 3.1 Requirement of the Act The growth forecast contained in this chapter (with supplemental tables in Appendix A) provides for the anticipated development for which the Township will be required to provide services over a 10-year (2026 to 2036) and a longer-term (2026 to urban buildout) time horizon. Chapter 4 provides the methodology for calculating a D.C. as per the D.C.A. Figure 4-1 presents this methodology graphically. It is noted in the first box of the schematic that in order to determine the D.C. that may be imposed, it is a requirement of subsection 5 (1) of the D.C.A. that "the anticipated amount, type and location of development, for which development charges can be imposed, must be estimated." 3.2 Basis of Population, Household and Non-Residential Gross Floor Area Forecast The D.C. growth forecast has been derived by Watson in consultation with the Township of Southgate. In preparing the growth forecast, the following information sources were consulted to assess the residential and non-residential development potential for the Township over the forecast period, including: - Grey County Growth Management Plan Update, February 2026, by Hemson Consulting Ltd.; - Township of Southgate 2022 Development Charges Background Study, August 2, 2022, by Watson & Associates Economists Ltd. - Village of Dundalk Comprehensive Review Report, September 2020 and Addendum Letter August 2021, MHBC Planning Urban Design & Landscape Architecture; - Municipal Zoning Orders O Reg 161/22, 162/22 and 165/22; - 2011, 2016 and 2021 population, household and employment Census data; - Historical residential building permit data over the 2016 to 2025 period; Watson & Associates Economists Ltd. PAGE 3-2 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Township of Southgate - 2026 Development Charges Background Study - FINAL.docx - Residential and non-residential supply opportunities as identified by Township of Southgate staff; and - Discussions with Township staff regarding anticipated residential and non- residential development in the Township of Southgate. 3.3 Summary of Growth Forecast A detailed analysis of the residential and non-residential growth forecasts is provided in Appendix A and the methodology employed is illustrated in Figure 3-1. The discussion provided herein summarizes the anticipated growth for the Township and describes the basis for the forecast. The results of the residential growth forecast analysis are summarized in Table 3-1 below, and Schedule 1 in Appendix A. As identified in Table 3-1 and Appendix A - Schedule 1, population in the Township of Southgate (excluding census undercount) is anticipated to reach approximately 13,120 by mid-2036 and 17,060 by urban buildout, resulting in an increase of approximately 2,330 and 6,260 persons, respectively. [1] [1] The population figures used in the calculation of the 2026 D.C. exclude the net Census undercount, which is estimated at approximately 4.2%. Population figures presented herein have been rounded. Watson & Associates Economists Ltd. PAGE 3-3 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Township of Southgate - 2026 Development Charges Background Study - FINAL.docx Figure 3-1 Population and Household Forecast Model Intensification Designated Lands Servicing Capacity Residential Units in the Development Process Employment Market by Local Municipality, Economic Outlook Local, region and Provincial Forecast of Residential Units Decline in Existing Population Net Population Increase Historical Housing Construction DEMAND SUPPLY Occupancy Assumptions Gross Population Increase Watson & Associates Economists Ltd. PAGE 3-4 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Township of Southgate - 2026 Development Charges Background Study - FINAL.docx Table 3-1 Township of Southgate Residential Growth Forecast Summary [1] Population includes the Census undercount estimated at approximately 4.2% and has been rounded. [2] Includes townhouses and apartments in duplexes. [3] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units. [4] Buildout growth forecast assumes the Dundalk urban area is built-out. Notes: Numbers may not add due to rounding. Source: Derived from The Village of Dundalk Comprehensive Review Report, September 2020 and Addendum August 2021, Municipal Zoning Orders O Reg 161/22, 162/22 and 165/22 and discussions with Township staff. Watson & Associates Economists Ltd. Singles & Semi- Detached Multiple Dwellings[2] Apartments[3] Other Total Households 7,490 7,190 2,390 30 105 95 2,620 2.744 7,660 7,354 2,485 10 105 110 2,710 2.714 9,080 8,716 2,775 15 120 105 3,015 2.891 11,240 10,793 3,247 156 135 105 3,643 2.963 13,670 13,122 4,017 378 179 105 4,679 2.805 17,770 17,057 5,443 835 295 105 6,678 2.554 170 164 95 -20 0 15 90 1,420 1,362 290 5 15 -5 305 2,160 2,077 472 141 15 0 628 2,430 2,329 770 222 44 0 1,036 6,530 6,264 2,196 679 160 0 3,035 Mid 2026 - Buildout[4] Buildout [4] Incremental Mid 2011 - Mid 2016 Mid 2016 - Mid 2021 Mid 2021 - Mid 2026 Mid 2026 - Mid 2036 Forecast Mid 2026 Mid 2036 Historical Mid 2011 Mid 2016 Mid 2021 Year Population (Including Census Undercount)[¹] Population (Excluding Census Undercount) Housing Units Person Per Unit (P.P.U.): Total Population/ Total Households Watson & Associates Economists Ltd. PAGE 3-5 Provided below is a summary of the key assumptions and findings regarding the Township of Southgate D.C. growth forecast: 1. Unit Mix (Appendix A - Schedules 1 and 6) - The housing unit mix for the Township was derived from a detailed review of historical development activity (as per Schedule 6), as well as active residential development applications and discussions with Township staff regarding anticipated development trends for the Township of Southgate. - Based on the above indicators, the 2026 to 2036 household growth forecast for the Township is comprised of a unit mix of 74% low density units (single detached and semi-detached), 21% medium density (multiples except apartments) and 4% high density (bachelor, 1-bedroom and 2-bedroom apartments). 2. Geographic Location of Residential Development (Appendix A - Schedule 2) - Schedule 2 summarizes the anticipated amount, type, and location of development by area for the Township of Southgate - In accordance with forecast demand and available land supply, the amount and percentage of forecast housing growth between 2026 and 2036 by development location is summarized below. Table 3-2 Township of Southgate Geographic Location of Residential Development Development Location Amount of Housing Growth, 2026 to 2036 Percentage of Housing Growth, 2026 to 2036 Dundalk 890 86% Rural Area 150 14% Township of Southgate 1,040 100% Note: Figures may not sum precisely due to rounding. 3. Planning Period - Short- and longer-term time horizons are required for the D.C. process. The D.C.A. limits the planning horizon for transit services and certain services with respect to land to a 10-year planning horizon. All other Watson & Associates Economists Ltd. PAGE 3-6 services can utilize a longer planning period if the municipality has identified the growth-related capital infrastructure needs associated with the longer-term growth planning period. 4. Population in New Units (Appendix A - Schedules 3, 4 and 5) - The number of housing units to be constructed by urban buildout in the Township of Southgate over the forecast period is presented in Table 3-1. Over the 2026 to 2036 forecast period, the Township is anticipated to average approximately 104 new housing units per year. - Population in new units is derived from Schedules 3, 4 and 5, which incorporate historical development activity, anticipated units (see unit mix discussion) and average persons per unit (P.P.U.) by dwelling type for new units. - Schedule 7a summarizes the average P.P.U. assumed for new housing units by age and type of dwelling based on Statistics Canada 2021 custom Census data for the Township of Southgate. Due to data limitations medium and high density P.P.U. data was derived from the Grey County which includes the Township of Southgate, and is outlined in Schedule 7b. The total calculated P.P.U. for all density types has been adjusted accordingly to account for the P.P.U. trends which has been recently experienced in both new and older units. Forecasted 25-year average P.P.U.s by dwelling type are as follows: o Low density: 3.118 o Medium density: 1.787 o High density: 1.552 5. Existing Units and Population Change (Appendix A - Schedules 3, 4, and 5) - Existing households for mid-2026 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). Watson & Associates Economists Ltd. PAGE 3-7 - The change in average occupancy levels for existing housing units is calculated in Schedules 3 through 5.[1] The forecast population change in existing households over the 2026 to 2036 forecast period is forecast to decline by approximately 540. 6. Employment (Appendix A - Schedules 9a, 9b and 9c) - The employment forecast provided herein are largely based on the activity rate method, which is defined as the number of jobs in the Township divided by the number of residents. Key employment sectors include primary, industrial, commercial/population-related, institutional, and work at home, which are considered individually below. - 2016 employment data [2],[3] (place of work) for the Township of Southgate is outlined in Schedule 9a. The 2016 employment base is comprised of the following sectors: o 80 primary (5%); o 755 work at home employment (49%); o 270 industrial (17%); o 305 commercial/population-related (20%); and o 140 institutional (9%). - The 2016 employment by usual place of work, including work at home, is 1,545. An additional 305 employees have been identified for the Township of Southgate in 2016 that have no fixed place of work (N.F.P.O.W.).[4] - Total employment, including work at home and N.F.P.O.W. for the Township of Southgate is anticipated to reach approximately 3,560 by [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. [2] 2016 employment is based on Statistics Canada 2016 Place of Work Employment dataset by Watson & Associates Economists Ltd. [3] 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 3-8 mid-2036 and 5,560 by urban buildout. This represents an employment increase of approximately 1,130 for the 10-year forecast period and 3,130 for the longer-term forecast period. - Schedule 9b, Appendix A, summarizes the employment forecast, excluding work at home employment and N.F.P.O.W. employment, which is the basis for the D.C. employment forecast. The impact on municipal services from work at home employees has already been included in the population forecast. The need for municipal services related to N.F.P.O.W. employees has largely been included in the employment forecast by usual place of work (i.e., employment and gross floor area generated from N.F.P.O.W. construction employment). Furthermore, since these employees have no fixed work address, they cannot be captured in the non-residential G.F.A. calculation. Accordingly, work at home and N.F.P.O.W. employees have been removed from the D.C.A. employment forecast and calculation. - Total employment for the Township of Southgate (excluding work at home and N.F.P.O.W. employment) is anticipated to reach approximately 1,640 by mid-2036 and 2,800 by urban buildout. This represents an employment increase of approximately 670 for the 10-year forecast period and 1,820 for the longer-term forecast period. 7. Non-Residential Sq.ft. Estimates (G.F.A.), Appendix A - Schedule 9b) - Square footage estimates were calculated in Schedule 9b based on the following employee density assumptions: o 3,000 sq.ft. per employee for primary; o 1,650 sq.ft. per employee for industrial; o 500 sq.ft. per employee for commercial/population-related; and o 850 sq.ft. per employee for institutional employment. - The Township-wide incremental G.F.A. is anticipated to increase by 0.9 million sq.ft. over the 10-year forecast period and 2.4 million sq.ft. over the longer-term forecast period. - In terms of percentage growth, the 2026 to 2036 incremental G.F.A. forecast by sector is broken down as follows: o Primary - 6% o industrial - 68%; o commercial/population-related - 16%; and Watson & Associates Economists Ltd. PAGE 3-9 o institutional - 10%. 8. Geographic Location of Non-Residential Development (Appendix A, Schedule 9c) - Schedule 9c summarizes the anticipated amount, type and location of non-residential development by area for the Township of Southgate. - The amount and percentage of forecast total non-residential growth between 2026 and 2036 by development location is summarized below. Table 3-3 Township of Southgate Geographic Location of Non-Residential Development Development Location Amount of Non- Residential G.F.A. (sq.ft.), 2025 to 2036 Percentage of Non- Residential G.F.A., 2025 to 2036 Dundalk 377,100 45% Rural Area 479,800 55% Township of Southgate 870,200 100% Note: Figures may not sum precisely due to rounding Watson & Associates Economists Ltd. Chapter 4 The Approach to the Calculation of the Charge Watson & Associates Economists Ltd. PAGE 4-1 4. The Approach to the Calculation of the Charge 4.1 Introduction This chapter addresses the requirements of subsection 5 (1) of the D.C.A. with respect to the establishment of the need for service which underpins the D.C. calculation. These requirements are illustrated schematically in Figure 4-1. 4.2 Services Potentially Involved Table 4-1 lists the full range of municipal services that are provided within municipalities and indicates the D.C.-eligible service components included in the D.C. background study for the Township. A number of these services are not included in the list of eligible services provided in subsection 2 (4) of the D.C.A. as being ineligible for inclusion in D.C.s. These are shown as "ineligible" on Table 4-1B (as per the legend in Table 4-1A). Two ineligible costs defined in subsection 5 (3) of the D.C.A. are "computer equipment" and "rolling stock with an estimated useful life of (less than) seven years." In addition, local roads are covered separately under subdivision agreements and related means (as are other local services). Services that are potentially eligible for inclusion in the Township's D.C. are indicated with a "Yes." 4.3 Increase in the Need for Service The D.C. calculation commences with an estimate of "the increase in the need for service attributable to the anticipated development," for each service to be covered by the by-law. There must be some form of link or attribution between the anticipated development and the estimated increase in the need for service. While the need could conceivably be expressed generally in terms of units of capacity, subsection 5 (1) 3, which requires that Township Council indicate that it intends to ensure that such an increase in need will be met, suggests that a project-specific expression of need would be most appropriate. Watson & Associates Economists Ltd. PAGE 4-2 Figure 4-1 The Process of Calculating a Development Charge under the Act that must be followed Watson & Associates Economists Ltd. PAGE 4-3 Table 4-1A Categories of Township Services to be Addressed as Part of the Calculation - Eligibility Legend Eligibility for Inclusion in the D.C. Calculation Description Yes Township provides the service - service has been included in the D.C. calculation. No Township provides the service - service has not been included in the D.C. calculation. n/a Township does not provide the service. Ineligible Service is ineligible for inclusion in the D.C. calculation. Table 4-1B Categories of the Township Services to be Addressed as Part of the Calculation Categories of Township Services Inclusion in the D.C. Calculation Service Components 1. Water supply services, including distribution and treatment services Yes Yes Ineligible No 1.1 Treatment plants, Water Supply, and Storage Facilities 1.2 Distribution systems 1.3 Local services 1.4 Vehicles and equipment[1] 2. Wastewater services, including sewers and treatment services Yes Yes Ineligible No 2.1 Treatment plants 2.2 Sewage trunks 2.3 Local services 2.4 Vehicles and equipment[1] 3. Stormwater Drainage and Control Services Yes Yes Yes 3.1 Main channels and drainage trunks 3.2 Channel connections 3.3 Retention/detention ponds 4. Services Related to a Highway Yes Yes No Yes Yes Yes Yes Yes Yes 4.1 Arterial roads 4.2 Bridges and Culverts 4.3 Local municipal roads 4.4 Traffic signals 4.5 Sidewalks 4.6 Streetlights 4.6 Active Transportation 4.7 Works Yard 4.8 Rolling stock[1] [1] with a 7+ year useful life. Watson & Associates Economists Ltd. PAGE 4-4 Categories of Township Services Inclusion in the D.C. Calculation Service Components 5. Electrical Power Services n/a n/a n/a 5.1 Electrical substations 5.2 Electrical distribution system 5.3 Electrical system rolling stock[1] 6. Transit Services n/a n/a 6.1 Transit vehicles[1] & facilities 6.2 Other transit infrastructure 7. Waste Diversion Services Yes Yes No 7.1 Waste diversion facilities 7.2 Waste diversion vehicles and equipment[1] 7.3 Waste diversion - Other 8. Policing Services n/a n/a n/a 8.1 Police Detachments 8.2 Police rolling stock[1] 8.3 Small equipment and gear 9. Fire Protection Services Yes Yes Yes 9.1 Fire stations 9.2 Fire vehicles[1] 9.3 Fire equipment and gear 10. Ambulance Services n/a n/a 10.1 Ambulance station space 10.2 Vehicles[1] 11. Services provided by a board within the meaning of the Public Libraries Act Yes No Yes 11.1 Public library space (incl. furniture and equipment) 11.2 Library vehicles[1] 11.3 Library materials 12. Services Related to Long- Term Care n/a n/a 12.1 Long-Term Care space 12.2 Vehicles[1] 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 stock[1] and yards 13.4 Facilities, such as arenas, indoor pools, fitness facilities, community centres, etc. 13.5 Recreation vehicles and equipment[1] 14. Services Related to Public Health n/a n/a 14.1 Public Health department space 14.2 Public Health department vehicles[1] [1] with a 7+ year useful life. Watson & Associates Economists Ltd. PAGE 4-5 Categories of Township Services Inclusion in the D.C. Calculation Service Components 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 Child care space 15.2 Vehicles[1] 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 Vehicles[1] 17. Services Related to Emergency Preparedness No No 17.1 Emergency Preparedness Space 17.2 Equipment 18. Services Related to Airports Ineligible Ineligible 18.1 Airports 18.2 Other Airports 20. Other Yes Yes Yes 20.1 Interest on money borrowed to pay for growth-related capital 20.2 Studies in connection with eligible services, including the D.C. background study 20.3 Land acquisition costs for facilities 4.4 Local Service Policy Some of the need for services generated by additional development consists of local services related to a plan of subdivision. As such, they will be required as a condition of subdivision agreements or consent conditions. The Township's Local Service Policy is included in Appendix D. [1] with a 7+ year useful life. Watson & Associates Economists Ltd. PAGE 4-6 4.5 Capital Forecast Paragraph 7 of subsection 5 (1) of the D.C.A. requires that "the capital costs necessary to provide the increased services must be estimated." The Act goes on to require two potential cost reductions and the regulation sets out the way in which such costs are to be presented. These requirements are outlined below. These estimates involve capital costing of the increased services discussed above. This entails costing actual projects or the provision of service units, depending on how each service has been addressed. The capital costs include: a) costs to acquire land or an interest therein (including a leasehold interest); b) costs to improve land; c) costs to acquire, lease, construct or improve buildings and structures; d) costs to acquire, lease or improve facilities, including rolling stock (with a useful life of 7 or more years), furniture and equipment (other than computer equipment), materials acquired for library circulation, reference, or information purposes; e) interest on money borrowed to pay for the above-referenced costs; and f) costs to undertake studies in connection with the above-referenced matters (include costs of the D.C. background study). In order for an increase in need for service to be included in the D.C. calculation, Township Council must indicate "that it intends to ensure that such an increase in need will be met" (subsection 5 (1) 3). This can be done if the increase in service forms part of a Council-approved Official Plan, capital forecast, or similar expression of the intention of Council (O. Reg. 82/98 section 3). The capital program contained herein reflects the Township's needs established through discussions with staff, servicing studies and prior D.C. 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 Watson & Associates Economists Ltd. PAGE 4-7 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 Classes of Services Section 7 of the D.C.A. states that a D.C. by-law may provide for any D.C.-eligible service or the capital costs with respect to those services. Furthermore, a class may be composed of any number or combination of services and may include parts or portions of each D.C.-eligible 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. 4.8 Existing Reserve Funds Section 35 of the D.C.A. states that: "The money in a reserve fund established for a service may be spent only for capital costs determined under paragraphs 2 to 7 of subsection 5 (1)." There is no explicit requirement under the D.C.A. calculation method set out in s. 5 (1) to net the outstanding reserve fund balance as part of making the D.C. calculation; however, section 35 does restrict the way in which the funds are used in future. For services that are subject to a per-capita-based, service level "cap," the reserve fund balance should be applied against the development-related costs for which the charge was imposed once the project is constructed (i.e., the needs of recent growth). This cost component is distinct from the development-related costs for the next forecast period, which underlie the D.C. calculation herein. Watson & Associates Economists Ltd. PAGE 4-8 The alternative would involve the Township spending all reserve fund monies prior to renewing each by-law, which would not be a sound basis for capital budgeting. Thus, the Township will use these reserve funds for the Township's cost share of applicable development-related projects, which are required but have not yet been undertaken, as a way of directing the funds to the benefit of the development which contributed them (rather than to future development, which will generate the need for additional facilities directly proportionate to future growth). The Township D.C. estimated reserve fund balances, by service, as of December 31, 2025, are provided in Table 4-2. The balances have been adjusted to reflect commitments outstanding for prior approved growth-related projects and collections as of June 30, 2026. These balances have been considered in the D.C. calculations: Table 4-2 Township of Southgate Projected Development Charge Reserve Fund Balances Service Estimated Unadjusted Year-End Balance Reserve Fund Adjustments (Inclusive of Mid-Year Collections) Total Roads and Related 1,545,135 (4,719,329) (3,174,194) Fire Services 292,116 (42,627) 249,488 Parks and Recreation 2,754,747 131,494 2,886,241 Library 342,477 67,645 410,122 Growth-Related Studies 164,069 (69,336) 94,733 Waste Diversion 93,887 (5,236) 88,651 Wastewater 7,960,076 206,349 8,166,425 Water (1,437,624) 345,340 (1,092,284) Stormwater 398,607 1,050 399,656 Total 12,113,489 (4,084,651) 8,028,838 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 historical level of service ceiling; - uncommitted excess capacity; Watson & Associates Economists Ltd. PAGE 4-9 - benefit to existing development; and - anticipated grants, subsidies, and other contributions. The requirements behind each of these reductions are addressed below. 4.9.1 Reduction Require by Historical Level of Service Ceiling This is designed to ensure that the increase in need included in section 4.3 does "not include an increase that would result in the level of service (for the additional development increment) exceeding the average historical level of the service provided in the municipality over the 15-year period immediately preceding the preparation of the background study" (D.C.A., subsection 5 (1) 4). O. Reg. 82/98 (section 4) goes further to indicate that "both the quantity and quality of a service shall be taken into account in determining the level of service and the average level of service." In many cases, this can be done by establishing a quantity measure in terms of units as floor area, land area, or road length per capita and a quality measure, in terms of the average cost of providing such units based on replacement costs, engineering standards, or recognized performance measurement systems, depending on circumstances. When the quantity and quality factors are multiplied together, they produce a measure of the level of service which meets the requirements of the Act, i.e., cost per unit. The average historical service level calculation sheets for each service component in the D.C. calculation are set out in Appendix B. 4.9.2 Reduction for Uncommitted Excess Capacity Paragraph 5 of subsection 5 (1) requires a deduction from the increase in the need for service attributable to the anticipated development that can be met using the Township's "excess capacity," other than excess capacity which is "committed." "Excess capacity" is undefined, but in this case must be able to meet some or all of the increase in need for service, in order to potentially represent a deduction. The deduction of uncommitted excess capacity from the future increase in the need for service would normally occur as part of the conceptual planning and feasibility work associated with justifying and sizing new facilities, (e.g., if a road widening to accommodate increased traffic is not required because sufficient excess capacity is already available, then widening would not be included as an increase in need, in the first instance). Watson & Associates Economists Ltd. PAGE 4-10 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; - the elimination of a chronic servicing problem not created by growth; and - providing services where none previously existed (generally considered for water or wastewater services). This step involves a further reduction in the need, by the extent to which such an increase in service would benefit existing development. The level of service cap in section 4.9.1 is related but is not the identical requirement. 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 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 Township-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 limited benefit to existing development. Furthermore, where an increase in demand is not met for a number of years, a negative service impact to existing development is involved for a portion of the planning period. Watson & Associates Economists Ltd. PAGE 4-11 4.9.4 Reduction for Anticipated Grants, Subsidies, and Other Contributions This step involves reducing the capital costs necessary to provide the increased services by capital grants, subsidies, and other contributions (including direct developer contributions required due to the local service policy) made or anticipated by Council and in accordance with various rules such as the attribution between the share related to new vs. existing development. That is, some grants and contributions may not specifically be applicable to growth or where Council targets fundraising as a measure to offset impacts on taxes (O. Reg. 82/98, section 6). 4.10 Township-Wide vs. Area-Specific 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 amended D.C.A., it is now mandatory to "consider" area-rating of services (providing charges for specific areas and services); however, it is not mandatory to implement area rating. The Township uses an area-specific D.C. calculation for water, wastewater, and stormwater services for the urban areas. Further discussion on the spatial applicability of D.C.s is provided in Section 7.3.7. 4.11 Allocation by Type 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. 4.12 Asset Management The legislation now requires that a D.C. background study must include an asset management plan (subsection 10 (2) c.2). The asset management plan (A.M.P.) must deal with all assets that are proposed to be funded, in whole or in part, by D.C.s. The current regulations provide very extensive and specific requirements for the A.M.P. related to transit services (as noted in the subsequent subsection); however, they are Watson & Associates Economists Ltd. PAGE 4-12 silent with respect to how the A.M.P. is to be provided for all other services. As part of any A.M.P., the examination should be consistent with the municipality's existing assumptions, approaches, and policies on asset management planning. Watson & Associates Economists Ltd. Chapter 5 D.C.-Eligible Cost Analysis by Service Watson & Associates Economists Ltd. PAGE 5-1 5. Development Charge Eligible Cost Analysis by Service and Class of Services 5.1 Introduction This chapter outlines the basis for calculating eligible costs for the D.C.s to be applied on a uniform basis for the defined service areas. In each case, the required calculation process set out in subsection 5 (1) paragraphs 2 to 7 in the D.C.A., and described in Chapter 4, was followed in determining D.C.-eligible costs. The service component is evaluated on two format sheets: - The service standards that provide the average historical 15-year level of service calculation (see Appendix B), which "caps" the D.C. amounts; and - The infrastructure cost calculation, which determines the potential D.C.- recoverable cost. The nature of the capital projects and timing identified in this Chapter reflect Council's current intention. Over time, however, Township projects and Council priorities may change; accordingly, Council's intentions may be altered, and different capital projects (and timing) may be necessary to meet the need for services required by new growth. 5.2 Service Levels and Buildout Capital Costs for Township- wide Development Charge Services and Class of Services Calculation This section evaluates the development-related capital requirements for all Township's services under a buildout planning period, from mid-2026 to buildout. 5.2.1 Services Related to a Highway The Township's inventory of roadways is measured in kilometres (km) and includes Paved Roads (Urban and Semi-Urban), Paved Roads (Rural), Surface Treated and Gravel roads external to subdivisions. In total, the Township currently owns 508 km of roads. The Township also has 28,660 sq.ft. of facility space related to public works facilities and 35 vehicles & equipment units to service the roads network. Watson & Associates Economists Ltd. PAGE 5-2 The total inventory of assets over the past 15-years results in an invested level of service of $20,832 per capita. When applied to the buildout forecast population of 6,264, a maximum D.C.-eligible cost of $130.5 million is applicable. Table 5-1 provides the buildout capital program for services related to a highway. The capital program includes rural road upgrades and improvements, urban road reconstructions, sidewalks, vehicles and public works' share of the new multi-use facility that will house public works, fire and administrative/Council services. Further to these capital projects, the costs for roads needs study updates and a bridge study have been included. The total gross capital cost of the program is approximately $21.9 million over the forecast period. A deduction related to the benefit to the existing development has been applied for $8.5 million. The current reserve fund deficit is accounted for and results in $3.2 million being included in the calculation of the charge. As a result, the total D.C.-recoverable cost of $12.6 million has been included in the calculation of the charge. Approximately $9.7 million (77%) and $2.9 million (23%) have been attributed to residential and non-residential developments, respectfully. These attributions are based on the incremental growth anticipated in population and employment over the forecast period. 5.2.2 Fire Protection Services The Township currently provides fire protection services to its community through one fire station equipped with 7 vehicles and 104 items of equipment and gear, including gear to outfit firefighters. The total inventory of assets over the past 15 years results in an invested level of service of $1,504 per capita. When applied to the forecast population, a maximum D.C.-eligible cost of approximately $9.4 million is applicable. The capital program for fire protection services is provided in Table 5-2. The capital program includes a total gross capital cost of $6.0 million over the forecast period, including fire's share of the new multi-use facility, equipment for additional fire fighters, additional vehicles and a fire master plan. Of the gross capital costs, $300,200 has been deducted for the benefit to the existing development inclusive of the reserve fund balance of $249,500. As a result, the D.C.-recoverable cost of $5.7 million has been included in the calculation of the charge and has been apportioned to residential and non-residential Watson & Associates Economists Ltd. PAGE 5-3 development based on the incremental population and employment growth over the period. 5.2.3 Parks and Recreation Services The Township currently maintains 37 acres of parkland with 21 amenities, which include various sports fields, playgrounds and related equipment pads, pools, etc. Additionally, the Township maintains 0.6 km of trails and 36,610 sq.ft. of recreational facility space. To maintain these assets, the Township is equipped with 6.5 vehicles and equipment. The total inventory of assets related to parks and recreation services over the past 15 years results in an invested level of service of $2,260 per capita. When applied to the forecast population, a maximum D.C.-eligible cost of $15.6 million is calculated. Table 5-3 provides the capital program related to parks and recreation services over the forecast period. It includes capital works related to a provision for additional facility space, neighbourhood park developments, trails, various other parkland amenities and vehicles required for the additional infrastructure. In addition to these costs, a recognition of the credits provided to Flato for the installation of infrastructure has also been included in the calculation of the charge. The gross capital cost for the capital program totals $16.8 million. Deductions in recognition of the benefits existing development have been made totaling $3.0 million of which includes a reduction to recognize the D.C. reserve balance of $2.9 million. As a result, $13.8 million has been included in the calculation of the charge. As the predominant users of parks and recreation services tend to be residents of the Township, the forecast D.C.-recoverable costs have been allocated 95% to future residential development and 5% to future non-residential development. Therefore, $13.1 million, and $0.7 million have been allocated to residential and non-residential developments, respectively. 5.2.4 Library Services The Township provides library services through the utilization of a 5,821 square foot facility and 15,757 collection materials. This level of service represents an investment of $539 per capita, which, when applied against the forecast population of 6,264 results in a maximum D.C.-eligible cost of $3.4 million. Watson & Associates Economists Ltd. PAGE 5-4 To service this future growth, the Township has included cost for additional collection material as well as a provision for expanded library floor space (inclusive of anticipated financing costs). From these costs, the Township's existing reserve fund balance of $410,000 has been deducted from the calculation of the charge. This results in the total D.C.-eligible costs considered for library services being $3.6 million. As library services are primarily utilized by residents, these costs have been allocated 95% to residential development and 5% to non-residential development. Table 5-4 outlines the capital program as it relates to parks and recreation. 5.2.5 Waste Diversion Services The Township provides a total of 40,085 sq.ft. of solid waste management facility space, of which 28,749 sq.ft. (72%) is for D.C. eligible waste diversion services. The facility space related to landfill services has been excluded from the historical level of service calculations, as these services are ineligible under the D.C.A. In addition, waste diversion vehicles have been included in the level of service calculations. In total, this capital investment in waste diversion services results in a 15-year historical average level of service of $336 per capita. Applying this historical average level of service to the anticipated development over the forecast period, the Township would be eligible to collect a maximum of $2.1 million for this purpose. The Township has identified the need for upgrades to transfer stations and new hazardous waste storage containers which total $981,400. From this cost, for the transfer station upgrades, deductions are made to acknowledge the share of the project that relates to non-D.C. eligible costs of $381,440. A further deduction of $422,500 is made in recognition of the benefits received by existing development and current reserve fund balances. This results in a total D.C.-eligible cost of $177,400 being included in the calculation of the charge. These costs are then distributed between residential and non-residential development based on the share of population and employment growth (i.e., 77% residential and 23% non-residential). The capital costs discussed are summarized in Table 5-5. 5.2.6 Land Acquisition Land related to D.C. eligible services is considered a class of service under the D.C.A., similar to growth-related studies. Watson & Associates Economists Ltd. PAGE 5-5 The land costs included in this subsection are related to the anticipated capital costs for services that are assessed from 2026 to buildout (i.e., fire services and services related to a highway). The Township has identified the need for land acquisition related a new multi-use facility that will house additional facility space for public works, fire, administration and Council. The total estimated cost for these lands is $500,000. A deduction of $107,100 has been made to address the share of the costs that are related to non-D.C. eligible services. As a result, the net D.C.-recoverable cost to be included in the calculations is $392,900. The shares of these costs between residential and non-residential development reflect the shares identified for each specific service area above and their share of total capital costs included within the charge. This results in the aggregate share being 77% residential and 23% non-residential. Land costs are presented in Table 5-6. 5.2.7 Growth-Related Studies (Class of Services) Section 7 of the D.C.A. states that a D.C. by-law may provide for any D.C. eligible service or the capital costs with respect to those services. 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 comprises the following services: - Services Related to a Highway; - Fire Protection Services; - Parks and Recreation Services; - Waste Diversion Services; - Library Services; - Land Acquisition; - Stormwater Services, Watson & Associates Economists Ltd. PAGE 5-6 - Water Services; and - Wastewater Services. The following provides a list of the studies that have been identified for the 10-year forecast period: - Development Charge Studies; - Zoning By-law Review; - Official Plan Update; and - CPPS By-law Review. The list of growth-related studies, as provided in Table 5-7, has an estimated gross capital cost of approximately $672,500. For planning-related studies, a deduction of 10% of the growth-related costs, totaling $23,610, has been applied to recognize the extent to which the studies relate to non-D.C.-eligible services. Furthermore, after accounting for the benefit to existing development deduction of $331,100 including the reserve fund balance of $94,700, results in net D.C. recoverable costs of $317,800. Planning-related studies and future D.C. background studies have been allocated to the services in the following manner based on the share of D.C. eligible costs by service area: - Services Related to a Highway - 19.9%; - Fire Protection Services - 9%; - Parks and Recreation Services - 21.6%; - Waste Diversion Services - 0.3%; - Library Services - 10.8%; - Land Acquisition - 0.6%; - Stormwater Services - 3.3%, - Water Services - 34.5%; and - Wastewater Services - 0%. 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 (i.e., 79% residential and 21% non-residential). Watson & Associates Economists Ltd. PAGE 5-7 Table 5-1 Infrastructure Costs Included in the Development Charge Calculation Roads and Related Services Less: Potential D.C. Recoverable Cost Proj. No. Residential Share Non- Residential Share 2026 to Buildout 77% 23% Rural Road Upgrades/Improvements - - - - - - - 1 Road 22 from Dromore to SDRD 3 (551, 246, 465) (5.5km) 2033 1,429,300 - 1,429,300 795,300 634,000 488,180 145,820 2 SDRD 39 from Wilder Lake Road to Townline (2km) 2031 802,600 - 802,600 446,600 356,000 274,120 81,880 3 Wilder lake Road ID 391,561 (1.033km) 2032 388,400 - 388,400 216,100 172,300 132,671 39,629 4 Southgate Sdrd 03 From Southgate Rd 08-Grey Rd 9 (ID 337,338,339,470) (8270m) 2026 1,831,400 - 1,831,400 1,019,100 812,300 625,471 186,829 5 Southgate Sdrd 71 From Southgate Rd 26 to Municipal Boundary (ID 99,150,152,162,472,440) (8150m) 2027 1,804,800 - 1,804,800 1,004,300 800,500 616,385 184,115 6 Southgate Sdrd 41 From Southgate Rd 04 to Southgate Rd 12 (ID 599,381,379,378) (6530m) 2028 1,446,100 - 1,446,100 804,700 641,400 493,878 147,522 Urban Road Reconstructions - - - - - - - 7 Bradley/Grey/Osprey Reconstruction (846m) 2026 4,156,100 - 4,156,100 2,312,700 771,924 1,071,476 825,037 246,440 8 Main Street West Recon. (Proton Street to Ida Street) (1350m) Twsp portion 2027 1,751,000 - 1,751,000 974,400 776,600 597,982 178,618 9 Eco Parkway (1.1km) 2026-2046 507,000 - 507,000 282,100 224,900 173,173 51,727 Sidewalks - - - - - - - 10 Bradley/Highpoint Sidewalk Extension 2027 334,800 - 334,800 186,300 148,500 114,345 34,155 11 Dundalk Sidewalk Improvements ($50k every other year) 2026-2046 500,000 - 500,000 278,200 221,800 170,786 51,014 Facilities - - - - - - - 12 Public Works Portion of New Multi-Use Facility 2026-2046 2,207,100 - 2,207,100 - 2,207,100 1,699,467 507,633 Equipment - - - - - - - 13 Vehicle- Single Axle for Dundalk 2032 412,000 - 412,000 - 412,000 317,240 94,760 14 Sidewalk Plow 2027 236,900 - 236,900 - 236,900 182,413 54,487 15 Sidewalk Plow 2032 236,900 - 236,900 - 236,900 182,413 54,487 16 New Street Sweeper 2027 360,500 - 360,500 - 360,500 277,585 82,915 Studies - - - - - - - 17 Road Needs Study Update 2026-2046 150,000 - 150,000 75,000 75,000 57,750 17,250 18 Bridge Study 2026-2046 140,000 - 140,000 70,000 70,000 53,900 16,100 Reserve Fund Adjustment 3,174,194 - 3,174,194 - 3,174,194 2,444,129 730,065 Total 21,869,094 - 21,869,094 8,464,800 771,924 12,632,370 9,726,925 2,905,445 Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2026$) Post Period Benefit Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Watson & Associates Economists Ltd. PAGE 5-8 Table 5-2 Infrastructure Costs Included in the Development Charge Calculation Fire Protection Services Less: Potential D.C. Recoverable Cost Proj. No. Residential Share Non- Residential Share 2026 to Buildout 77% 23% 1 Fire Portion of New Multi-Use Facility 2026 2,650,000 - 2,650,000 - 2,650,000 2,040,500 609,500 2 Bunker Gear - 8 units 2026-2033 58,400 - 58,400 - 58,400 44,968 13,432 3 Second Set of Bunker Gear (8 units) 2026-2046 58,400 - 58,400 29,200 29,200 22,484 6,716 4 Ladder Truck 2027 2,300,000 - 2,300,000 - 2,300,000 1,771,000 529,000 5 Pumper Truck 2032 874,000 - 874,000 - 874,000 672,980 201,020 6 Fire Master Plan 2032 86,000 - 86,000 21,500 64,500 49,665 14,835 - - - - - - - Reserve Fund Adjustment - - - 249,488 (249,488) (192,106) (57,382) - - - - - - - Total 6,026,800 - - 6,026,800 300,188 - 5,726,612 4,409,491 1,317,121 Increased Service Needs Attributable to Anticipated Development Timing (year) Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Post Period Benefit Other Deductions Net Capital Cost Gross Capital Cost Estimate (2026$) Watson & Associates Economists Ltd. PAGE 5-9 Table 5-3 Infrastructure Costs Included in the Development Charge Calculation Parks and Recreation Services Proj. No. Residential Share Non- Residential Share 2026 to Buildout 95% 5% 1 Nieghborhood Park Development (3) 2026-2046 248,100 - 248,100 - 248,100 235,695 12,405 2 Trail Development - Connections 2026-2046 94,200 - 94,200 47,100 47,100 44,745 2,355 3 Provision for Community Centre Facility 2028 11,602,870 - 11,602,870 - 11,602,870 11,022,726 580,143 3 Provision for Community Centre Facility - Net Present Value of Incremental Interest Payments 2028 2,357,321 - 2,357,321 - 2,357,321 2,239,455 117,866 4 Splash Pad 2028 234,700 - 234,700 130,600 104,100 98,895 5,205 5 Ball Diamonds (6) 2026-2046 1,804,800 - 1,804,800 - 1,804,800 1,714,560 90,240 6 Soccer Fields (5) 2026-2046 176,000 - 176,000 - 176,000 167,200 8,800 7 Pick-Up Truck 2026-2030 70,400 - 70,400 - 70,400 66,880 3,520 8 Trailer 2026-2046 9,100 - 9,100 - 9,100 8,645 455 9 Mower (2) 2026-2046 32,400 - 32,400 - 32,400 30,780 1,620 10 Ice Resurfacer 2030 135,300 - 135,300 - 135,300 128,535 6,765 11 Flato Credits 2026-2046 56,334 - 56,334 - 56,334 53,517 2,817 - - - - - - - Reserve Fund Adjustment - - - 2,886,241 (2,886,241) (2,741,929) (144,312) Total 16,821,525 - - 16,821,525 3,063,941 - 13,757,584 13,069,705 687,879 Gross Capital Cost Estimate (2026$) Increased Service Needs Attributable to Anticipated Development Timing (year) Post Period Benefit Other Deductions Net Capital Cost Less: Potential D.C. Recoverable Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Watson & Associates Economists Ltd. PAGE 5-10 Table 5-4 Infrastructure Costs Included in the Development Charge Calculation Library Services Table 5-5 Infrastructure Costs Included in the Development Charge Calculation Waste Diversion Services Proj. No. Residential Share Non- Residential Share 2026 to Buildout 95% 5% 1 Future Collections, Databases and Eresources 2026-2046 923,126 - 923,126 - 923,126 876,969 46,156 2 Provision for New Library 2026 2,455,237 - 2,455,237 - 2,455,237 2,332,476 122,762 3 Provision for New Library - Net Present Value of Incremental Interest Payments 2026-2046 498,823 - 498,823 - 498,823 473,882 24,941 Reserve Fund Adjustment - - - 410,122 (410,122) (389,616) (20,506) - - - - - - - Total 3,979,087 - - 3,979,087 410,122 - 3,568,965 3,390,517 178,448 Gross Capital Cost Estimate (2026$) Total Less: Potential D.C. Recoverable Cost Post Period Benefit Other Deductions Increased Service Needs Attributable to Anticipated Development Timing (year) Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contribution s Attributable to New Development Proj. No. Residential Share Non- Residential Share 2026 to Buildout 77% 23% 1 Dundalk Transfer Station Upgrades 2026 900,000 - 360,000 540,000 300,500 239,500 184,415 55,085 2 New Hazardous Waste Container 2027 27,800 - 27,800 15,500 12,300 9,471 2,829 3 Holstein Transfer station upgrades 2026 53,600 - 21,440 32,160 17,900 14,260 10,980 3,280 - - - - - - - Reserve Fund Adjustment - - - 88,651 (88,651) (68,261) (20,390) Total 981,400 - 381,440 599,960 422,551 - 177,409 136,605 40,804 Increased Service Needs Attributable to Anticipated Development Timing (year) Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Gross Capital Cost Estimate (2026$) Total Less: Potential D.C. Recoverable Cost Post Period Benefit Other Deductions Watson & Associates Economists Ltd. PAGE 5-11 Table 5-6 Infrastructure Costs Included in the Development Charge Calculation Land Acquisition Residential Share Non- Residential Share 2026 to Buildout 77% 23% 1 Land for New Multi-Use Facility 2026-2046 500,000 - 107,100 392,900 - 392,900 302,533 90,367 - - - - - - - - - - - - - - Reserve Fund Adjustment - - - - - - - - - - - - - - Total 500,000 - 107,100 392,900 - - 392,900 302,533 90,367 Proj. No. Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2026$) Post Period Benefit Other Deductions Net Capital Cost Less: Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Potential D.C. Recoverable Cost Watson & Associates Economists Ltd. PAGE 5-12 Table 5-7 Infrastructure Costs Included in the Development Charge Calculations Growth-Related Studies Residential Share Non- Residential Share 2026 to 2035 79% 21% 1 Official Plan Update 2027 70,400 - 3,520 66,880 35,200 31,680 25,094 19,878 2 Official Plan Update 2037 70,400 - 3,520 66,880 35,200 31,680 25,094 19,878 3 Development Charge Studies 2030-2046 200,000 - 200,000 - 200,000 158,425 125,492 4 Zoning By-law Review 2024 93,900 - 4,690 89,210 47,000 42,210 33,436 26,485 5 Zoning By-law Review 2034 93,900 - 4,690 89,210 47,000 42,210 33,436 26,485 6 Zoning By-law Review 2044 93,900 - 4,690 89,210 47,000 42,210 33,436 26,485 7 CPPS By-Law Review 2026-2030 50,000 - 2,500 47,500 25,000 22,500 17,823 14,118 - - - - - - - Reserve Fund Adjustment - - 94,733 (94,733) (75,040) (19,693) Total 672,500 - 23,610 648,890 331,133 - 317,757 251,703 239,128 Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Less: Potential D.C. Recoverable Cost Other Deductions (to recognize benefit to non- D.C. services) Proj. No. Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2026$) Post Period Benefit Watson & Associates Economists Ltd. PAGE 5-13 Table 5-8 Infrastructure Costs Covered in the D.C. Calculation Growth-Related Studies - Residential/Non-Residential Shares Service Area Total Study Costs Residential Share Non- Residential Share Municipal Wide Services/Class of Service: Services Related to a Highway 62,875 48,414 14,461 Fire Protection Services 28,503 21,947 6,556 Parks and Recreation Services 68,475 65,052 3,424 Library Services 34,639 17,764 16,876 Waste Diversion 883 680 203 Growth Studies - - - Land Acquisition 1,956 1,506 450 Urban Services Stormwater Drainage and Control Services 10,584 8,467 2,117 Wastewater Services - - - Water Services 109,842 87,874 21,968 Total 317,757 251,703 66,054 Residential/Non-Residential % 79% 21% Watson & Associates Economists Ltd. PAGE 5-14 5.3 Urban Buildout Capital Costs for Township Urban Service Development Charge Services Calculation This D.C. background study provides for the application of water, wastewater, and stormwater charges within the municipally serviced urban areas of Dundalk. The anticipated development-related capital requirements for these services have been considered over the urban buildout forecast period. 5.3.1 Stormwater Services The stormwater program includes improvements to the Highpoint Drain, to accommodate growth within the Township. In total, the gross capital cost estimates amount to $2.5 million. A benefit-to-existing deduction of $399,700, which is completely attributable to the existing reserve fund balance. The net capital costs identified for inclusion in the calculation total $2.1 million. These costs have been allocated 80% residential and 20% non-residential, based on forecast population and employment over the forecast period. 5.3.2 Wastewater Services The capital program for wastewater services includes upgrades to the sewage treatment facility (including anticipated financing costs), wastewater SCADA technology, and future study costs. The gross capital costs are estimated at $10.4 million. After accounting for benefits received by existing development and estimated grant funding, existing reserve fund balances exceed the growth-related needs. As such, no costs have been included in the calculation of the charge and excess reserve fund balances have been applied against the growth-related water service costs. 5.3.3 Water Services The water program includes outstanding debt payments for the construction of Well D5, Well D6 Construction and Well D3 upgrades. The capital program also includes various oversizing, looping and upgrades to linear infrastructure. In total, the gross capital cost estimates amount to $26.4 million. A benefit-to-existing deduction of $4.3 million has been made inclusive of the excess wastewater reserves. This results in the total capital costs included in the calculation are $22.1 million. Watson & Associates Economists Ltd. PAGE 5-15 These costs have been allocated 80% residential and 20% non-residential, based on forecast population and employment over the forecast period. Watson & Associates Economists Ltd. PAGE 5-16 Table 5-9 Infrastructure Costs Included in the Development Charge Calculation Stormwater Services Residential Share Non- Residential Share 2026 to Urban Buildout 80% 20% 1 Highpoint Drain Improvements 2026-2030 2,155,300 - 2,155,300 - 2,155,300 1,724,240 431,060 2 Highpoint Drain Improvements 2027 370,800 - 370,800 - 370,800 296,640 74,160 - - - - - - - Reserve Fund Adjustment - - - 399,656 (399,656) (319,725) (79,931) - - - - - - - Total 2,526,100 - - 2,526,100 399,656 - 2,126,444 1,701,155 425,289 Less: Potential D.C. Recoverable Cost Total Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Proj. No. Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2026$) Post Period Benefit Other Deductions Net Capital Cost Watson & Associates Economists Ltd. PAGE 5-17 Table 5-10 Infrastructure Costs Included in the Development Charge Calculation Wastewater Services Residential Share Non- Residential Share 2026 to Urban Buildout 80% 20% 1 Sewage Treatment Facility Upgrades (Phase 1) 2026 6,252,000 - 6,252,000 625,200 3,115,925 2,510,875 2,008,700 502,175 2 Sewage Treatment Facility Upgrades (Phase 1) - Net Present Value of Incremental Interest Payments 2026-2046 510,127 - 510,127 - 510,127 408,102 102,025 3 Sewage Treatment Facility Upgrades (Phase 2) 2032 2,418,000 - 2,418,000 - 2,418,000 1,934,400 483,600 4 Sewage Treatment Facility Upgrades (Phase 2) - Net Present Value of Incremental Interest Payments 2032-2052 491,258 - 491,258 - 491,258 393,006 98,252 5 Wastewater SCADA Technology 2026-2046 482,200 - 482,200 - 482,200 385,760 96,440 6 Wastewater Collection System Review (5-year Cycle) 2026-2046 200,000 - 200,000 50,000 150,000 120,000 30,000 - - - - - - - Reserve Fund Adjustment - - - 8,166,425 (8,166,425) (6,533,140) (1,633,285) - - - - - - - - - - - - - - Total 10,353,585 - - 10,353,585 8,841,625 3,115,925 (1,603,965) (1,283,172) (320,793) Gross Capital Cost Estimate (2026$) Post Period Benefit Other Deductions Net Capital Cost Less: Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Total Potential D.C. Recoverable Cost Proj. No. Increased Service Needs Attributable to Anticipated Development Timing (year) Watson & Associates Economists Ltd. PAGE 5-18 Table 5-11 Infrastructure Costs Included in the Development Charge Calculation Wastewater Services Residential Share Non- Residential Share 2026 to Urban Buildout 80% 20% 1 New Well D6 construction 2035 6,650,800 - 6,650,800 - 6,650,800 5,320,640 1,330,160 2 New Well D6 construction - Net Present Value of Incremental Interest Payments 2035-2055 1,351,224 - 1,351,224 - 1,351,224 1,080,979 270,245 3 Well D5 - Principal of Outstanding Debt Payments 2026-2029 818,042 - 818,042 - 818,042 654,433 163,608 4 Well D5 - Net Present Value of Incremental Interest Payments 2026-2029 18,824 5 Well D3 High Lift Pumping Upgrades 2026 440,800 - 440,800 44,100 396,700 317,360 79,340 6 Main St W Oversizing (Yong Street to Ida Street) 2026 2,994,000 - 2,994,000 299,400 2,694,600 2,155,680 538,920 7 Main St W Oversizing - Net Present Value of Incremental Interest Payments 2022-2046 547,454 - 547,454 - 547,454 437,963 109,491 8 Hwy #10 Watermain Looping (1.2km) 2027 2,154,900 - 2,154,900 215,500 1,939,400 1,551,520 387,880 9 Bradley Street (Highpoint Street to East end of Bradley) 2027 544,100 - 544,100 54,400 489,700 391,760 97,940 10 Osprey Street (Victoria Street to Main Street), Osprey Street (Main Street to Grey Street), Grey Street (Osprey to Bradley), and Bradley Street (White Rose Subdivision to Grey) 2027 4,856,400 - 4,856,400 485,600 4,370,800 3,496,640 874,160 11 Main Street East (Sinclair Street to Highway 10) (220m- Oversizing to 300mm) 2028-2030 1,120,300 - 1,120,300 112,000 1,008,300 806,640 201,660 12 Grey County Rail Trail (Hagan Street to Eco Parkway)(920m) 2027 1,037,700 - 1,037,700 103,800 933,900 747,120 186,780 13 Bell-Hagan-Gold Loop 2030 550,000 - 550,000 55,000 495,000 396,000 99,000 14 Owen Sound Street 2031-2035 1,981,900 - 1,981,900 1,247,400 734,500 587,600 146,900 15 Water Distribution System Review (5-year Cycle) 2022-2046 200,000 - 200,000 50,000 150,000 120,000 30,000 - - - - - - - Reserve Fund Adjustment 1,092,284 - 1,092,284 - 1,092,284 873,827 218,457 Reserve Fund Adjustment (Wastewater Surplus) - - - 1,603,965 (1,603,965) (1,283,172) (320,793) Total 26,358,727 - - 26,339,903 4,271,165 - 22,068,738 17,654,991 4,413,748 Gross Capital Cost Estimate (2026$) Post Period Benefit Other Deductions Net Capital Cost Less: Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable Total Potential D.C. Recoverable Cost Proj. No. Increased Service Needs Attributable to Anticipated Development Timing (year) Watson & Associates Economists Ltd. Chapter 6 Development Charge Calculation Watson & Associates Economists Ltd. PAGE 6-1 6. Development Charge Calculation Table 6-1 shows the D.C. calculation for area-specific services assessed over the urban buildout forecast in the serviced area of Dundalk. The D.C. calculations for municipal- wide services over the buildout forecast are shown in Table 6-2. The D.C. eligible costs for each service were determined in Chapter 5 for all Township services, based on their associated capital programs. The calculation for residential development is generated on a per capita basis and is based upon four (4) forms of housing types (singles and semi-detached dwellings, other multiple dwellings, bachelor and 1-bedroom apartments and 2+ bedrooms apartments). The non-residential D.C. has been calculated on a per sq.ft. of G.F.A. basis and on a residential equivalent basis for wind turbines and solar farms. For the residential calculations, the total cost is divided by the "gross" (new resident) population to determine the per capita amount. The residential D.C. recoverable capital cost calculations set out in Chapter 5 are based on the net anticipated population increase (the forecast new unit population less the anticipated decline in existing units). The cost per capita is then multiplied by the average occupancy of the new units (Appendix A, Schedule 3) to calculate the charges in Tables 6-3. Table 6-3 provides the schedule of charges that is applicable for all services by type of development, for residential and non-residential developments in 2026$ values. Tables 6-4 and 6-5 provide a comparison of the current D.C.s and the charges proposed herein. These comparisons are provided for a single-detached residential house and non-residential development. The calculated charges for new development are $19,953 for a single detached residential house, representing an decrease of $2,194 per unit over the Township's current D.C.s. The calculated non-residential D.C.s for new development are $5.50 per sq.ft. of G.F.A. representing a decrease of $2.47 per sq.ft. compared to the Township's current D.C.s. Watson & Associates Economists Ltd. PAGE 6-2 Table 6-1 Urban Services D.C. Calculation for the Urban Buildout Forecast Period Table 6-2 Township-Wide D.C. Calculation for the Buildout Forecast Period 2026$ D.C.-Eligible Cost 2026$ D.C.-Eligible Cost SERVICE/CLASS Residential Non-Residential S.D.U. per sq.ft. $ $ $ $ 1. Stormwater Drainage and Control Services 1,701,155 425,289 722 0.29 2. Wastewater Services - - - - 3. Water Services 17,654,991 4,413,748 7,490 2.96 TOTAL 19,356,146 4,839,036 $8,212 3.25 D.C.-Eligible Capital Cost $19,356,146 $4,839,036 Buildout Gross Population/GFA Growth (sq.ft.) 7,349 1,488,300 Cost Per Capita/Non-Residential GFA (sq.ft.) $2,633.85 $3.25 By Residential Unit Type P.P.U. Single and Semi-Detached Dwelling 3.118 $8,212 Other Multiples 1.787 $4,707 Apartments - 2 Bedrooms + 1.718 $4,525 Apartments - Bachelor and 1 Bedroom 1.159 $3,053 2026$ D.C.-Eligible Cost 2026$ D.C.-Eligible Cost SERVICE/CLASS Residential Non-Residential S.D.U. per sq.ft. $ $ $ $ 4. Services Related to a Highway 9,726,925 2,905,445 3,650 1.20 5. Fire Protection Services 4,409,491 1,317,121 1,655 0.54 6. Parks and Recreation Services 13,069,705 687,879 4,905 0.28 7. Library Services 3,390,517 178,448 1,272 0.07 8. Waste Diversion 136,605 40,804 51 0.02 9. Growth Studies 251,703 239,128 94 0.10 10. Land Acquisition 302,533 90,367 114 0.04 TOTAL $31,287,478 $5,459,192 $11,741 $2.25 D.C.-Eligible Capital Cost $31,287,478 $5,459,192 20-Year Gross Population/GFA Growth (sq.ft.) 8,309 2,425,800 Cost Per Capita/Non-Residential GFA (sq.ft.) $3,765.49 $2.25 By Residential Unit Type P.P.U. Single and Semi-Detached Dwelling 3.118 $11,741 Other Multiples 1.787 $6,729 Apartments - 2 Bedrooms + 1.718 $6,469 Apartments - Bachelor and 1 Bedroom 1.159 $4,364 Watson & Associates Economists Ltd. PAGE 6-1 Table 6-3 Calculated Schedule of Development Charges by Service and Class of Services Single and Semi- Detached Dwelling Other Multiples Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom (per sq.ft. of Gross Floor Area) Wind Turbines Solar Farm (per 500 kW) Municipal Wide Services/Class of Service: Services Related to a Highway 3,650 2,092 2,011 1,357 1.20 3,650 3,650 Fire Protection Services 1,655 949 912 615 0.54 1,655 1,655 Parks and Recreation Services 4,905 2,811 2,703 1,823 0.28 - - Library Services 1,272 729 701 473 0.07 - - Waste Diversion 51 29 28 19 0.02 - - Growth Studies 94 54 52 35 0.10 94 94 Land Acquisition 114 65 63 42 0.04 114 114 Total Municipal Wide Services/Class of Services 11,741 6,729 6,470 4,364 2.25 5,513 5,513 Urban Services Stormwater Drainage and Control Services 722 414 398 268 0.29 - - Wastewater Services - - - - - - - Water Services 7,490 4,293 4,127 2,784 2.96 - - Total Urban Services 8,212 4,707 4,525 3,052 3.25 - - GRAND TOTAL RURAL AREA 11,741 6,729 6,470 4,364 2.25 5,513 5,513 GRAND TOTAL URBAN AREA 19,953 11,436 10,995 7,416 5.50 5,513 5,513 RESIDENTIAL Service/Class of Service NON-RESIDENTIAL Watson & Associates Economists Ltd. PAGE 6-2 Table 6-4 Single Detached Residential House D.C. Comparison Table 6-5 Non-Residential House D.C. Comparison per sq.ft. of Gross Floor Area (2026$) Service/Class of Service Current Calculated Change ($) Change (%) Municipal Wide Services/Classes: Services Related to a Highway 4,092 3,650 (442) -11% Fire Protection Services 1,427 1,655 228 16% Parks and Recreation Services 3,628 4,905 1,277 35% Library Services 1,127 1,272 145 13% Waste Diversion 228 51 (177) -78% Growth Studies 154 94 (60) -39% Land Acquisition - 114 114 n/a Total Municipal Wide Services/Classes 10,657 11,741 1,084 10% Area Specific Services: Stormwater Drainage and Control Services 17 722 705 4086% Wastewater Services 4,061 - (4,061) -100% Water Services 7,411 7,490 79 1% Total Area Specific Services 11,490 8,212 (3,278) -29% Grand Total - Urban Area 22,147 19,953 (2,194) -10% Service/Class of Service Current Calculated Change ($) Change (%) Municipal Wide Services/Classes: Services Related to a Highway 1.51 1.20 (0.31) -21% Fire Protection Services 0.53 0.54 0.01 2% Parks and Recreation Services 0.32 0.28 (0.04) -12% Library Services 0.11 0.07 (0.04) -34% Waste Diversion 0.08 0.02 (0.06) -75% Growth Studies 0.05 0.10 0.05 88% Land Acquisition - 0.04 0.04 n/a Total Municipal Wide Services/Classes 2.60 2.25 (0.35) -13% Area Specific Services: Stormwater Drainage and Control Services 0.01 0.29 0.28 2085% Wastewater Services 1.60 - (1.60) -100% Water Services 3.75 2.96 (0.79) -21% Total Area Specific Services 5.37 3.25 (2.12) -39% Grand Total - Urban Area 7.97 5.50 (2.47) -31% Watson & Associates Economists Ltd. Chapter 7 Development Charge Policy Recommendations and By-law Rules Watson & Associates Economists Ltd. PAGE 7-1 7. Development Charge Policy Recommendations and By-law 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 regarding 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 amendments to the D.C.A. as summarized in Chapter 1. These policies, however, are provided for Council's consideration and may be refined prior to adoption of the by-law. Watson & Associates Economists Ltd. PAGE 7-2 7.2 Development Charge By-law Structure It is recommended that: - the Township uses a uniform municipal-wide D.C. calculation for all Township- wide services and an area-specific D.C. calculation for urban services in the Village of Dundalk; and - one municipal D.C. by-law be used for all services. 7.3 D.C. By-law Rules The following subsections set out the recommended rules governing the calculation, payment and collection of D.C.s in accordance with section 6 of the D.C.A. It is recommended that the following sections provide the basis for the D.C.s.: 7.3.1 Payment in any Particular Case In accordance with the D.C.A., subsection 2 (2), a D.C. be calculated, payable, and collected where the development requires one or more of the following: "(a) the passing of a zoning by-law or of an amendment to a zoning by- law under section 34 of the Planning Act; (b) the approval of a minor variance under section 45 of the Planning Act; (c) a conveyance of land to which a by-law passed under subsection 50 (7) of the Planning Act applies; (d) the approval of a plan of subdivision under section 51 of the Planning Act; (e) a consent under section 53 of the Planning Act; (f) the approval of a description under section 9 of the Condominium Act, 1998; or (g) the issuing of a permit under the Building Code Act, 1992 in relation to a building or structure." Watson & Associates Economists Ltd. PAGE 7-3 7.3.2 Determination of the Amount of the Charge The following conventions were utilized in the calculation of the charge: 1) Costs allocated to residential uses will be assigned to different types of residential units based on the average occupancy for each housing type constructed during the previous decade. Costs allocated to non-residential uses will be assigned based on the number of square feet of G.F.A. constructed for eligible uses (i.e., retail and non-retail). 2) Costs allocated to residential and non-residential uses are based upon a number of conventions, as may be suited to each municipal circumstance, for example: - For parks and recreation services and library services, a 5% non- residential attribution has been made to recognize use by the non- residential sector; and - For the remaining Township-wide services, a 77% residential/23% non- residential attribution has been made based on a population vs. employment growth ratio over the forecast period; - For urban services, an 80% residential/20% non-residential attribution has been made based on a population vs. employment growth ratio over the forecast period within the urban area; - With respect to growth-related studies and land (i.e., classes of D.C.- eligible services), the residential/non-residential allocation is based on the allocation identified above for the D.C.-eligible services 7.3.3 Application to Redevelopment of Land (Demolition and Conversion) Where, as a result of the redevelopment of land, a building or structure existing on the same land within 60 months (five years) prior to the date of payment of D.C.s in regard to such redevelopment was, or is to be demolished, in whole or in part, or converted from one principal use to another principal use on the same land, in order to facilitate the redevelopment, the D.C.s otherwise payable with respect to such redevelopment shall be reduced by the following amounts: - In the case of a residential building or structure, or in the case of a mixed-use building or structure, the residential uses in the mixed-use building or Watson & Associates Economists Ltd. PAGE 7-4 structure, an amount calculated by multiplying the applicable D.C. by the number, according to type, of dwelling units that have been or will be demolished or converted to another principal use; and - In the case of a non-residential building or structure or, in the case of mixed- use building or structure, the non-residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable D.C., by the G.F.A. that has been or will be demolished or converted to another principal use; The demolition/conversion 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 (five years) prior to the issuance of a building permit. 7.3.4 Exemptions (full or partial) Statutory exemptions include the following: - industrial building additions of up to and including 50% of the existing G.F.A. (defined in O. Reg. 82/98, section 1) of the building; for industrial building additions that exceed 50% of the existing G.F.A., only the portion of the addition in excess of 50% is subject to D.C.s (subsection 4 (3) of the D.C.A.); - buildings or structures owned by and used for the purposes of any municipality, local board, or Board of Education (section 3); - The addition of up to 2 units in an existing or new detached, semi-detached, or rowhouse (including in an ancillary structure); - One additional unit or 1% of existing units in an existing rental residential building; - a university in Ontario that receives direct, regular, and ongoing operating funding from the Government of Ontario; - affordable units; - attainable units (to be in force at a later date); - affordable inclusionary zoning units; - non-profit housing; - long-term care homes; - non-profit retirement homes; and Watson & Associates Economists Ltd. PAGE 7-5 - discount for rental housing units based on bedroom size (i.e. three or more bedrooms - 25% reduction, two bedrooms - 20% reduction, and all others - 15% reduction). Non-statutory (discretionary exemptions) include the following: - A place of worship, cemetery, or burial ground; - A public hospital under the Public Hospitals Act; - Non-residential farm buildings; - Temporary uses; and - Non-Profit Housing meeting the requirements of a program for such purposes as administered by any agency of the Federal or Provincial government, Grey County, or the Township. 7.3.5 Timing of Collection The D.C.s for all services and class of services proceeding through subdivision and/or consent, are payable upon issuance of a building permit for each dwelling unit, building, or structure, subject to early or late payment agreements entered into by the Township and an owner under section 27 of the D.C.A. Rental housing and institutional developments will pay D.C.s in six equal annual payments commencing at occupancy, and then on the anniversary of occupancy for the following five (5) years. Interest will not be charged on these payments. Further, the requirement for an early payment agreement for residential and institutional development is no longer required. Moreover, 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. At the time of site plan or zoning by-law amendment application, the D.C.s payable are the lower of the "frozen" rate plus interest, or the rate in for on the date D.C.s are payable. Instalment payments and payments determined at the time of Site Plan or Zoning By- law Amendment application are subject to annual interest charges. The maximum interest rate the Township can impose is the average prime rate plus 1% as defined in subsection 26.3(1) of the Act. Watson & Associates Economists Ltd. PAGE 7-6 D.C. payments for non-rental residential developments have been deferred, from the time of first building permit to time of occupancy. Furthermore, the requirement for an early payment agreement for residential and institutional development is no longer needed if an applicant wishes to pay their charges earlier than otherwise required. 7.3.6 Indexing Indexing of the D.C.s shall be implemented on a mandatory basis annually commencing on January 1st, in accordance with the Statistics Canada Quarterly, Non-Residential Building Construction Price Index, for the third quarter results. 7.3.7 Development Charge Spatial Applicability The D.C.A. historically has provided the opportunity for a municipality to impose municipal-wide charges or area specific charges. Subsections 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. requires municipalities to consider the application of municipal-wide and area-specific D.C.s. Subsection 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. The rationale for maintaining a Township-wide D.C. approach for non-water and wastewater services is based, in part, on the following: 1. All Township services, except for water, wastewater, and stormwater services, require that the average 15-year service standard be calculated. This average service standard multiplied by growth in the Township, establishes an upper ceiling on the amount of funds that can be collected from all developing landowners. Section 4 (4) of O. Reg. 82/98 provides that "if a development charge by-law applies to a part of the municipality, the level of service and average level of service cannot exceed that which would be determined if the by- law applied to the whole municipality." Put in layman terms, the average service standard multiplied by the growth within the specific area would establish an area-specific ceiling which would significantly reduce the total revenue Watson & Associates Economists Ltd. PAGE 7-7 recoverable for the Township hence potentially resulting in D.C. revenue shortfalls and impacts on property taxes. 2. Expanding on item 1, attempting to impose an area charge potentially causes equity issues in transitioning from a Township-wide approach to an area-specific approach. For example, if all services were now built (and funded) within Area A (which is 75% built out) and this was funded with some revenues from Areas B and C, moving to an area-rating approach would see Area A contribute no funds to the costs of services in Areas B and C. The D.C.s would be lower in Area A (as all services are now funded) and higher in Areas B and C. As well, funding shortfalls may then potentially encourage the municipality to provide less services to Areas B and C due to reduced revenue. 3. Many services provided (roads, parks, and recreation facilities) are not restricted to one specific area and are often used by all residents. For example, arenas located in different parts of the Township will be used by residents from all areas depending on the programing of the facility (i.e., a public skate is available each night, but at a different arena; hence usage of any one facility at any given time is based on programming availability). Based on the foregoing and discussions with Township staff, Township-wide D.C.s has been adopted for all services and class of services included within the calculation of the charge. 7.4 Other D.C. By-law Provisions 7.4.1 Categories of Services for Reserve Fund and Credit Purposes It is recommended that the Township's D.C. collections be contributed into five (5) separate reserve funds, including: - Services Related to a Highway; - Fire Protection Services; - Parks and Recreation Services; - Library Services; - Growth-Related Studies; - Waste Diversion; Watson & Associates Economists Ltd. PAGE 7-8 - Land; - Stormwater Drainage and Control Services; - Wastewater Services; and - Water Services. 7.4.2 By-law In-force Date The proposed by-law under D.C.A. will come into force at the time of by-law passage. 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 comes into force (as per s.11 of O. Reg. 82/98). 7.5 Other Recommendations The following recommendations are required to be approved by Council to ensure the background study, and assumptions within it, are accepted as a basis for approval of the by-law. These recommendations are often included in a supporting staff report to Council for approval of the background study and D.C. by-law. It is recommended that Council: "Whenever appropriate, request that grants, subsidies and other contributions be clearly designated by the donor as being to the benefit of existing development or new development, as applicable;" "Adopt the assumptions contained herein as an 'anticipation' with respect to capital grants, subsidies, and other contributions;" "Adopt the D.C. approach to calculate the charges on a uniform Township- wide basis for all services and class of services;" "Approve the capital project listing set out in Chapter 5 of the D.C. Background Study dated September 24, 2026, subject to further annual review during the capital budget process;" "Approve the Local Service Policy contained in Appendix D of the D.C. Background Study dated September 24, 2026" "Determine that no further public meeting is required;" and Watson & Associates Economists Ltd. PAGE 7-9 "Approve the D.C. By-law as set out in Appendix G." Watson & Associates Economists Ltd. Chapter 8 Asset Management Plan Watson & Associates Economists Ltd. PAGE 8-1 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. In 2012, the Province developed Building Together: Guide for Municipal Asset Management Plans which outlines the key elements for an A.M.P., as follows: State of local infrastructure: asset types, quantities, age, condition, financial accounting valuation and replacement cost valuation. Desired levels of service: defines levels of service through performance measures and discusses any external trends or issues that may affect expected levels of service or the municipality's ability to meet them (for example, new accessibility standards, climate change impacts). Watson & Associates Economists Ltd. PAGE 8-2 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. The above provides for the general approach to be considered by Ontario municipalities. At this time, there is not a mandated approach for municipalities hence leaving discretion to individual municipalities as to how they plan for the long-term replacement of their assets. The Township's most recent A.M.P. does not include all the assets identified in this background study. As a result, the asset management requirement for this D.C. Background Study has been undertaken independently of the Township's A.M.P. 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 8.2 Asset Management Plan In recognition to the schematic in Section 8.1, the following table (presented in 2026$) 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 Township 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 2026 D.C. capital works have been presented based on a straight-line amortization 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 $4.9 million. Of this total, $0.8 million 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 $8.0 million. This amount, totalled with the existing operating revenues of $26.6 million, provides annual revenues of $34.6 million by the end of the period. 6. In consideration of the above, the capital plan is deemed to be financially sustainable. Watson & Associates Economists Ltd. PAGE 8-4 Table 8-1 Asset Management - Future Expenditures and Associated Revenues (2026$) Asset Management - Future Expenditures and Associated Revenues Buildout (Total) Expenditures (Annualized) Annual Debt Payment on Non-Growth Related Capital1 799,988 Lifecycle: Annual Lifecycle - Municipal-wide Services 1,710,383 Sub-Total - Annual Lifecycle 1,710,383 Incremental Operating Costs (for D.C. Services) 2,412,040 Total Expenditures 4,922,411 Revenue (Annualized) Total Existing Revenue2 26,552,523 Incremental Tax and Non-Tax Revenue (User Fees, Fines, Licences, etc.) 8,020,104 Total Revenues 34,572,627 2 As per Sch. 10 of FIR 1 Non-Growth Related component of Projects Watson & Associates Economists Ltd. PAGE 8-1 Chapter 9 By-law Implementation Watson & Associates Economists Ltd. PAGE 9-1 9. By-law Implementation 9.1 Introduction This chapter addresses the mandatory, formal public consultation process (section 9.1.1), as well as the optional, informal consultation process (section 9.1.2). 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. 9.1.1 Public Meeting of Council Section 12 of the D.C.A. indicates that before passing a D.C. by-law, Council must hold at least one public meeting, giving at least 20 clear days' notice thereof, in accordance with the Regulation. Council must also ensure that the proposed by-law and background report are made available to the public at least two weeks prior to the (first) meeting. Any person who attends such a meeting may make representations related to the proposed by-law. If a proposed by-law is changed following such a meeting, Council must determine whether a further meeting (under this section) is necessary (i.e., if the proposed by-law which is proposed for adoption has been changed in any respect, Council should formally consider whether an additional public meeting is required, incorporating this determination as part of the final by-law or associated resolution). It is noted that Council's decision, once made, is final and not subject to review by a Court or the Ontario Land Tribunal (OLT). 9.1.2 Other Consultation Activity There are three broad groupings of the public who are generally the most concerned with municipal D.C. policy: 1. The first grouping is the residential development community, consisting of land developers and builders, who are typically responsible for generating the majority of the D.C. revenues. Others, such as realtors, are directly impacted by D.C. policy. They are, therefore, potentially interested in all aspects of the charge, particularly the quantum by unit type, projects to be funded by the D.C. and the Watson & Associates Economists Ltd. PAGE 9-2 timing thereof, and municipal policy with respect to development agreements, D.C. credits and front-ending requirements. 2. The second public grouping embraces the public at large and includes taxpayer coalition groups and others interested in public policy. 3. The third grouping is the industrial/commercial/institutional development sector, consisting of land developers and major owners or organizations with significant construction plans, such as hotels, entertainment complexes, shopping centres, offices, industrial buildings, and institutions. Also involved are organizations such as Industry Associations, the Chamber of Commerce, the Board of Trade, and the Economic Development Agencies, who are all potentially interested in municipal D.C. policy. Their primary concern is frequently with the quantum of the charge, G.F.A. exclusions such as basements, mechanical or indoor parking areas, or exemptions and phase-in or capping provisions in order to moderate the impact. 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. PAGE 9-3 9.3 Implementation Requirements 9.3.1 Introduction Once the Township has calculated the charge, prepared the complete background study, carried out the public process and passed a new by-law, the emphasis shifts to implementation matters. These include notices, potential appeals and complaints, credits, front-ending agreements, subdivision agreement conditions and finally the collection of revenues and funding of projects. The sections that follow present an overview of the requirements in each case. 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 Township Clerk shall give written notice of the passing and of the last day for appealing the by-law (the day that is 40 days after the day it was passed). Such notice must be given no later than 20 days after the day the by-law is passed (i.e., as of the day of newspaper publication 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 Township must prepare a "pamphlet" explaining each D.C. by-law in force, setting out: - a description of the general purpose of the D.C.s; - the "rules" for determining if a charge is payable in a particular case and for determining the amount of the charge; Watson & Associates Economists Ltd. PAGE 9-4 - the services to which the D.C.s relate; and - a description of the general purpose of the Treasurer's statement and where it may be received by the public. Where a by-law is not appealed to the OLT, the pamphlet must be readied within 60 days after the by-law comes into force. Later dates apply to appealed by-laws. The Township must give one copy of the most recent pamphlet without charge to any person who requests one. 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 Township Clerk, setting out the objection to the by-law and the reasons supporting the objection. This must be done by the last day for appealing the by-law, which is 40 days after the by-law is passed. The Township is conducting a public consultation process in order to address the issues that come forward as part of that process, thereby avoiding or reducing the need for an appeal to be made. 9.3.5 Complaints A person required to pay a D.C., or his agent, may complain to the Township Council imposing the charge that: - the amount of the charge was incorrectly determined; - the reduction to be used against the D.C. was incorrectly determined; or - there was an error in the application of the D.C. Sections 20 to 25 of the D.C.A. set out the requirements that exist, including the fact that a complaint may not be made later than 90 days after a D.C. (or any part of it) is payable. A complainant may appeal the decision of Township Council to the OLT. Watson & Associates Economists Ltd. PAGE 9-5 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 Township and one or more landowners may enter into a front-ending agreement that provides for the costs of a project that will benefit an area in the Township to which the D.C. by-law applies. Such an agreement can provide for the costs to be borne by one or more parties to the agreement who are, in turn, reimbursed in future by persons who develop land defined in the agreement. Part III of the D.C.A. (sections 44 to 58) addresses front-ending agreements and removes some of the obstacles to their use, which were contained in the Development Charges Act, 1989. Accordingly, the Township assesses whether this mechanism is appropriate for its use, as part of funding projects prior to Township funds being available. 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. PAGE 9-6 It is also noted that subsection 59 (4) of the D.C.A. requires that the municipal approval authority for a draft plan of subdivision under subsection 51 (31) of the Planning Act, use its power to impose conditions to ensure that the first purchaser of newly subdivided land is informed of all the D.C.s related to the development, at the time the land is transferred. In this regard, if the municipality in question is a commenting agency, in order to comply with subsection 59 (4) of the D.C.A. it would need to provide to the approval authority information regarding the applicable municipal D.C.s related to the site. If the Township is an approval authority for the purposes of section 51 of the Planning Act, it would be responsible to ensure that it collects information from all entities that can impose a D.C. The most effective way to ensure that purchasers are aware of this condition would be to require it as a provision in a registered subdivision agreement, so that any purchaser of the property would be aware of the charges at the time the title was searched prior to closing a transaction conveying the lands. Appendices Watson & Associates Economists Ltd. PAGE A-1 Appendix A Background Information on Residential and Non- Residential Growth Forecast Watson & Associates Economists Ltd. PAGE A-2 Schedule 1 Township of Southgate Residential Growth Forecast Summary [1] Population includes the Census undercount estimated at approximately 4.2% and has been rounded. [2] Includes townhouses and apartments in duplexes. [3] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units. [4] Buildout growth forecast assumes the Dundalk urban area is built-out. Notes: Numbers may not add due to rounding. Source: Derived from The Village of Dundalk Comprehensive Review Report, September 2020 and Addendum August 2021, Municipal Zoning Orders O Reg 161/22, 162/22 and 165/22 and discussions with Township staff. Watson & Associates Economists Ltd. Singles & Semi- Detached Multiple Dwellings[2] Apartments[3] Other Total Households 7,490 7,190 2,390 30 105 95 2,620 2.744 7,660 7,354 2,485 10 105 110 2,710 2.714 9,080 8,716 2,775 15 120 105 3,015 2.891 11,240 10,793 3,247 156 135 105 3,643 2.963 13,670 13,122 4,017 378 179 105 4,679 2.805 17,770 17,057 5,443 835 295 105 6,678 2.554 170 164 95 -20 0 15 90 1,420 1,362 290 5 15 -5 305 2,160 2,077 472 141 15 0 628 2,430 2,329 770 222 44 0 1,036 6,530 6,264 2,196 679 160 0 3,035 Mid 2026 - Buildout[4] Buildout [4] Incremental Mid 2011 - Mid 2016 Mid 2016 - Mid 2021 Mid 2021 - Mid 2026 Mid 2026 - Mid 2036 Forecast Mid 2026 Mid 2036 Historical Mid 2011 Mid 2016 Mid 2021 Year Population (Including Census Undercount)[¹] Population (Excluding Census Undercount) Housing Units Person Per Unit (P.P.U.): Total Population/ Total Households Watson & Associates Economists Ltd. PAGE A-3 Schedule 2 Township of Southgate 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. [3] Buildout growth forecast assumes the Dundalk urban area is built-out. Source: Watson & Associates Economists Ltd. 2026 - 2036 620 222 44 886 2,398 -370 2,028 2026 - Buildout[3] 1,888 679 160 2,727 7,349 -1,408 5,940 2026 - 2036 150 0 0 150 468 -167 301 2026 - Buildout[3] 308 0 0 308 960 -637 324 2026 - 2036 770 222 44 1,036 2,866 -537 2,329 2026 - Buildout[3] 2,196 679 160 3,035 8,309 -2,045 6,264 Development Timing Single & Semi- Detached Multiples[1] Apartments[2] Total Gross Population Existing Unit Net Population Increase Location Residential Units In New Units Population Change Dundalk Rural Area Township of Southgate Watson & Associates Economists Ltd. PAGE A-4 Schedule 3 Township of Southgate Current Year Growth Forecast Mid-2021 to Mid-2026 Mid 2021 Population 8,716 Occupants of Units (2) 628 New Housing Units, multiplied by P.P.U. (3) 3.115 Mid 2021 to Mid 2026 gross population increase 1,956 1,956 Decline in Housing Units (4) 3,015 Unit Occupancy, multiplied by P.P.U. decline rate (5) 0.040 Mid 2021 to Mid 2026 total decline in population 121 121 Population Estimate to Mid 2026 10,793 Net Population Increase, Mid 2021 to Mid 2026 2,077 (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 3.556 75% 2.672 Multiples (6) 1.789 22% 0.402 Apartments (7) 1.716 2% 0.041 Total 100% 3.115 ¹ Based on 2021 Census custom database ² Based on Building permit/completion activity (4) 2016 households taken from Statistics Canada Census. (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. Estimated residential units constructed, Mid-2016 to the beginning of the growth period assuming a six-month lag between construction and occupancy. Population Structural Type Persons Per Unit¹ (P.P.U.) % Distribution of Estimated Units² Weighted Persons Per Unit Average Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. Watson & Associates Economists Ltd. PAGE A-5 Schedule 4 Township of Southgate 10-Year Growth Forecast Mid-2026 to Mid-2036 Mid 2026 Population 10,793 Occupants of Units (2) 1,036 New Housing Units, multiplied by P.P.U. (3) 2.766 Mid 2026 to Mid 2036 gross population increase 2,866 2,866 Decline in Housing Units (4) 3,643 Unit Occupancy, multiplied by P.P.U. decline rate (5) -0.147 Mid 2026 to Mid 2036 total decline in population -537 -537 Population Estimate to Mid 2036 13,122 Net Population Increase, Mid 2026 to Mid 2036 2,329 (1) Mid 2026 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 3.118 74% 2.318 Multiples (6) 1.787 21% 0.383 Apartments (7) 1.552 4% 0.066 one bedroom or less 1.159 two bedrooms or more 1.718 Total 100% 2.766 ¹ Persons per unit based on adjusted Statistics Canada Custom 2021 Census database. ² Forecast unit mix based upon historical trends and housing units in the development process. (4) Mid 2026 households based upon 2021 Census (3,015 units) + Mid 2021 to Mid 2026 unit estimate (628 units) = 3,643 units. (5) (6) Includes townhouses and apartments in duplexes. (7) Includes bachelor, 1-bedroom and 2-bedroom+ apartments. Note: Numbers may not add to totals due to rounding. Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. Structural Type Persons Per Unit¹ (P.P.U.) % Distribution of Estimated Units² Weighted Persons Per Unit Average Population 2021 Population (8,716) + Mid 2021 to Mid 2026 estimated housing units to beginning of forecast period (628 x 3.115 = 1,956) + (3,015 x 0.040 = 121) = 10,793 Watson & Associates Economists Ltd. PAGE A-6 Schedule 5 Township of Southgate Long-Term Growth Forecast Mid-2026 to Urban Buildout Mid 2026 Population 10,793 Occupants of Units (2) 3,035 New Housing Units, multiplied by P.P.U. (3) 2.738 Mid 2026 to Buildout gross population increase 8,309 8,309 Decline in Housing Units (4) 3,643 Unit Occupancy, multiplied by P.P.U. decline rate (5) -0.561 Mid 2026 to Buildout total decline in population -2,045 -2,045 Population Estimate to Buildout 17,057 Net Population Increase, Mid 2026 to Buildout 6,264 (1) Mid 2026 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 3.118 72% 2.256 Multiples (6) 1.787 22% 0.400 Apartments (7) 1.552 5% 0.082 one bedroom or less 1.159 two bedrooms or more 1.718 Total 100% 2.738 ¹ Persons per unit based on Statistics Canada Custom 2016 Census database. ² Forecast unit mix based upon historical trends and housing units in the development process. (4) Mid 2026 households based upon 2021 Census (3,015 units) + Mid 2021 to Mid 2026 unit estimate (628 units) = 3,643 units. (5) Decline 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. Population Structural Type Persons Per Unit¹ (P.P.U.) % Distribution of Estimated Units² Weighted Persons Per Unit Average 2021 Population (8,716) + Mid 2021 to Mid 2026 estimated housing units to beginning of forecast period (628 x 3.115 = 1,956) + (3,015 x 0.040 = 121) = 10,793 Watson & Associates Economists Ltd. PAGE A-7 Schedule 6 Township of Southgate Historical Residential Building Permits Years 2016 to 2025 [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 Township of Southgate, by Watson & Associates Economists Ltd. Residential Building Permits Total 2016 23 0 0 23 2017 87 0 1 88 2018 59 0 2 61 2019 115 0 0 115 2020 173 0 80 253 Sub-total 457 0 83 540 Average (2016 - 2020) 91 0 17 108 % Breakdown 85% 0% 15% 100% 2021 128 33 2 163 2022 200 88 2 290 2023 86 0 0 86 2024 18 8 7 33 2025 40 12 4 56 Sub-total 472 141 15 628 Average (2021 - 2025) 94 28 3 126 % Breakdown 75% 22% 2% 100% 2016 - 2025 Total 929 141 98 1,168 Average 93 14 10 117 % Breakdown 80% 12% 8% 100% Year Singles & Semi Detached Multiples[1] Apartments[2] Watson & Associates Economists Ltd. PAGE A-8 Schedule 7a Township of Southgate 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 25 Year Average 25 Year Average Adjusted[1] 1-5 - - - 3.333 4.727 3.556 6-10 - - - 2.850 - 3.563 11-15 - - - 3.188 - 2.821 16-20 - - - 2.857 - 2.931 20-25 - - - 3.214 - 3.303 3.235 3.118 25-35 - - - 2.250 - 2.464 35+ - - 1.745 2.745 5.093 2.858 Total - - 1.892 2.858 4.808 2.987 Age of All Density Types Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 1-5 - - - 3.439 4.727 3.609 6-10 - - - 2.850 - 3.371 11-15 - - - 3.118 - 2.793 16-20 - - - 2.773 - 2.933 20-25 - - - 3.226 - 3.000 25-35 - - - 2.250 - 2.448 35+ - 1.125 1.650 2.717 5.093 2.741 Total - 1.161 1.747 2.857 4.808 2.892 Watson & Associates Economists Ltd. PAGE A-9 Schedule 7b Grey County Person Per Unit by Age and Type of Dwelling (2021 Census) [1] Includes townhouses and apartments in duplexes. [2] Includes bachelor, 1 bedroom and 2 bedroom+ apartments. [3] Adjusted based on historical trends. Note: Does not include Statistics Canada data classified as "Other." P.P.U. Not calculated for samples less than or equal to 50 dwelling units and does not include institutional population. Age of Multiples[1] Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 25 Year Average 25 Year Average Adjusted[3] 1-5 - - 1.565 2.417 - 1.789 6-10 - - - 2.308 - 1.800 11-15 - - 1.517 2.167 - 1.692 16-20 - - 1.800 - - 1.686 20-25 - - 1.692 - - 1.769 1.747 1.787 25-35 - - 1.667 3.571 - 2.722 35+ - 1.250 1.866 2.448 - 2.041 Total 1.077 1.293 1.722 2.526 - 1.984 Age of Apartments[2] Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 25 Year Average 25 Year Average Adjusted[3] 1-5 - 1.000 1.500 2.923 - 1.716 6-10 - - 1.529 - - 1.500 11-15 - 1.077 1.462 - - 1.286 16-20 - - 1.667 - - 1.550 20-25 - 1.429 1.818 - - 1.750 1.560 1.552 25-35 - 1.053 1.419 - - 1.491 35+ 1.087 1.141 1.749 2.602 - 1.532 Total 1.037 1.143 1.691 2.754 - 1.540 Age of All Density Types Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 1-5 - 1.417 1.761 2.740 3.521 2.569 6-10 - 1.083 1.701 2.621 4.150 2.563 11-15 - 1.458 1.735 2.554 3.383 2.398 16-20 - 1.167 1.797 2.347 3.554 2.409 20-25 - 1.360 1.862 2.516 3.432 2.406 25-35 - 1.179 1.722 2.577 3.500 2.422 35+ 1.269 1.213 1.776 2.531 3.644 2.295 Total 1.219 1.228 1.771 2.542 3.614 2.344 Watson & Associates Economists Ltd. PAGE A-10 Schedule 8 Township of Southgate Person Per Unit Structural Type and Age of Dwelling (2016 Census) 2.86 3.24 3.09 2.93 2.38 2.85 2.73 1.86 1.66 1.43 2.04 2.13 1.83 1.89 1.69 1.52 1.45 2.13 1.45 1.50 1.51 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 Grey County. Watson & Associates Economists Ltd. PAGE A-11 Schedule 9a Township of Southgate Employment Forecast, 2026 to Buildout [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. [2] Buildout growth forecast assumes the Dundalk urban area is built-out. Source: Watson & Associates Economists Ltd. Employment Mid 2016 7,354 0.011 0.103 0.036 0.041 0.019 0.210 0.042 0.252 80 755 268 303 140 1,545 307 1,852 790 Mid 2026 10,793 0.008 0.095 0.040 0.029 0.013 0.185 0.040 0.225 89 1,024 428 313 144 1,998 428 2,426 974 Mid 2036 13,122 0.008 0.095 0.054 0.045 0.017 0.220 0.065 0.285 106 1,309 715 594 227 2,951 608 3,559 1,642 Buildout[2] 17,057 0.008 0.096 0.094 0.046 0.016 0.260 0.066 0.326 134 1,631 1,609 788 267 4,429 1,129 5,558 2,798 Mid 2016 - Mid 2026 3,439 -0.003 -0.008 0.003 -0.012 -0.006 -0.025 -0.002 -0.027 9 269 161 11 4 453 121 574 184 Mid 2026 - Mid 2036 2,329 0.000 0.000 0.015 0.016 0.004 0.035 0.026 0.060 17 285 287 281 83 953 180 1,133 668 Mid 2026 - Buildout[2] 6,264 0.000 0.001 0.055 0.017 0.002 0.074 0.027 0.101 45 607 1,188 475 123 2,431 701 3,132 1,824 Mid 2016 - Mid 2026 362 0.000 -0.001 0.000 -0.001 -0.001 -0.003 0.000 -0.003 1 28 17 1 0 48 13 60 19 Mid 2026 - Mid 2036 233 0.000 0.000 0.001 0.002 0.000 0.003 0.003 0.006 2 29 29 28 8 95 18 113 67 N.F.P.O.W.[1] Activity Rate Period Population Primary Work at Home Industrial Commercial/ Population Related Institutional Total Employment Primary Total Total Employment (Including N.F.P.O.W.) Institutional Total (Excluding Work at Home and N.F.P.O.W.) Incremental Change Annual Average Total Including NFPOW N.F.P.O.W.[1] Work at Home Industrial Commercial/ Population Related Watson & Associates Economists Ltd. PAGE A-12 Schedule 9b Township of Southgate Employment and Gross Floor Area (G.F.A.) Forecast, 2026 to Buildout [1] Square Foot Per Employee Assumptions Primary 3,000 Industrial 1,650 Commercial/Population-Related 500 Institutional 850 [2] Primary industry includes agriculture and resource related employment. [3] Institutional square feet per employee varies by growth period due to the development of a secondary school in the 2026 to 2036 growth forecast period. [4] Buildout growth forecast assumes the Dundalk urban area is built-out. *Reflects Mid-2026 to Buildout forecast period. Note: Numbers may not add up precisely due to rounding. Source: Watson & Associates Economists Ltd. Mid 2016 7,354 80 268 303 140 790 240,000 441,300 151,300 119,000 951,600 Mid 2026 10,793 89 428 313 144 974 267,000 706,100 156,500 122,400 1,252,000 Mid 2036 13,122 106 715 594 227 1,642 318,000 1,179,500 297,000 206,700 2,001,200 Buildout[4] 17,057 134 1,609 788 267 2,798 402,000 2,654,800 394,000 227,000 3,677,800 Mid 2016 - Mid 2026 3,439 9 161 11 4 184 27,000 264,800 5,200 3,400 300,400 Mid 2026 - Mid 2036 2,329 17 287 281 83 668 51,000 594,400 140,500 84,300 749,200 Mid 2026 - Buildout[4] 6,264 45 1,181 475 123 1,824 135,000 1,948,700 237,500 104,600 2,425,800 Mid 2016 - Mid 2026 362 1 17 1 0 19 2,842 27,874 547 358 31,621 Mid 2026 - Mid 2036 233 2 29 28 8 67 5,100 59,440 14,050 8,430 74,920 Gross Floor Area in Square Feet (Estimated)[1] Period Population Employment Total Annual Average Primary[2] Industrial Institutional[3] Total Incremental Change Commercial/ Population Related Institutional[3] Industrial Commercial/ Population Related Primary Watson & Associates Economists Ltd. PAGE A-13 Schedule 9c Township of Southgate 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 1,650 Industrial - Dundalk 1,300 Industrial - Rural Area 2,775 Commercial/Population-Related 500 Institutional 850 [2] Primary industry includes agriculture and resource related employment. [3] Institutional square feet per employee varies by growth period due to the development of a secondary school in the 2026 to 2036 growth forecast period. [4] Employment Increase does not include No Fixed Place of Work. [5] Buildout growth forecast assumes the Dundalk urban area is built-out. *Reflects Mid-2026 to Buildout forecast period. Note: Numbers may not add up precisely due to rounding. Source: Watson & Associates Economists Ltd. 2026 - 2036 178,100 128,000 84,300 390,400 476 2026 - Buildout[5] 1,171,700 212,000 104,600 1,488,300 1,448 2026 - 2036 51,000 416,300 12,500 - 479,800 192 2026 - Buildout[5] 135,000 777,000 25,500 - 937,500 376 2026 - 2036 51,000 594,400 140,500 84,300 870,200 668 2026 - Buildout[5] 135,000 1,948,700 237,500 104,600 2,425,800 1,824 Dundalk Development Location Timing Primary G.F.A. S.F.[1],[2] Industrial G.F.A. S.F.[1] Commercial G.F.A. S.F.[1] Institutional G.F.A. S.F.[1],[3] Total Non- Residential G.F.A. S.F. Employment Increase[4] Rural Area Township of Southgate Watson & Associates Economists Ltd. PAGE A-14 Schedule 9 Township of Southgate 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 Appendix B Historical Level of Service Calculations Watson & Associates Economists Ltd. PAGE B-2 Table B-1 Township of Southgate Fire Services - Facilities Service: Fire Protection Services - Facilities Unit Measure: sq.ft. of building area Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Bld'g Value ($/sq.ft.) Value/sq.ft. with site works, etc. Southgate Fire Hall 6,480 6,480 6,480 6,480 6,480 6,480 6,480 6,480 6,480 6,480 6,480 6,480 6,480 6,480 6,480 $812 $938 Wellington North - Mount Forest (Southgate Share - 33%) 2,683 2,683 2,683 2,683 2,683 2,683 2,683 2,683 2,683 $812 $938 Total 9,163 9,163 9,163 9,163 9,163 9,163 9,163 9,163 9,163 6,480 6,480 6,480 6,480 6,480 6,480 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 1.2744 1.2660 1.2589 1.2554 1.2542 1.2467 1.2384 1.2006 1.1767 0.8001 0.7439 0.7004 0.6385 0.6184 0.6117 15 Year Average 2011 to 2025 Quantity Standard 1.0190 Quality Standard $938 Service Standard $956 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $956 Eligible Amount $5,987,069 Watson & Associates Economists Ltd. PAGE B-3 Table B-2 Township of Southgate Fire Services - Vehicles Service: Fire Protection Services - Vehicles & Equipment Unit Measure: No. of vehicles Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Value ($/Vehicle) Rescue Van 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - $528,100 Pumper 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $839,500 Tanker 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 $603,600 Pumper 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $839,500 UTV 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 $28,200 Pickup Truck - - 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 $87,000 Wellington North (Southgate Share 33%) Tanker 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 - - - - - - $528,100 Rescue Van 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 - - - - - - $528,100 Pumper 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 - - - - - - $839,500 Pumper 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33 - - - - - - $839,500 Total 6.65 6.65 7.65 7.65 7.65 7.65 7.65 7.65 8.65 7.00 7.00 7.00 7.00 7.00 7.00 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 0.0009 0.0009 0.0011 0.0010 0.0010 0.0010 0.0010 0.0010 0.0011 0.0009 0.0008 0.0008 0.0007 0.0007 0.0007 15 Year Average 2011 to 2025 Quantity Standard 0.0009 Quality Standard $512,522 Service Standard $461 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $461 Eligible Amount $2,889,395 Watson & Associates Economists Ltd. PAGE B-4 Table B-3 Township of Southgate Fire Services - Equipment Service: Fire Protection Services - Small Equipment and Gear Unit Measure: No. of equipment and gear Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Value ($/item) S.C.B.A.'s 10 10 10 12 12 12 12 12 12 12 12 12 23 23 23 $16,100 Defibrillators 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 $3,200 Base Radios 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 $7,100 Vehicle Radios 5 5 6 6 6 6 6 6 7 7 7 7 7 7 7 $1,500 Portable Radios 23 23 23 23 23 23 23 23 23 24 24 24 24 24 24 $1,500 Portable Pumps 4 4 4 2 2 2 2 2 2 2 3 3 3 3 3 $8,600 AirBags 4 4 4 4 4 4 4 4 4 4 - - - - - $16,400 TMX Gas Detectors 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 $8,700 Thermal Imaging Camera 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 $9,600 Auto Extrication Equipment 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 $47,200 Bunker Gear Washing Machine 1 2 2 2 2 2 $10,400 Fire Fighter Equipment Southgate Fire Fighters 27 27 27 32 32 32 32 33 33 35 35 35 35 35 35 $7,300 Wellington North Firefighters (Southgate Share 33%) 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 6.93 $7,300 Total 86 86 87 91 91 91 91 92 93 90 93 93 104 104 104 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 0.0120 0.0119 0.0119 0.0125 0.0124 0.0124 0.0123 0.0120 0.0119 0.0111 0.0107 0.0101 0.0102 0.0099 0.0098 15 Year Average 2011 to 2025 Quantity Standard 0.0114 Quality Standard $7,586 Service Standard $86 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $86 Eligible Amount $541,711 Watson & Associates Economists Ltd. PAGE B-5 Table B-4 Township of Southgate Services Related to a Highway - Roads Service: Services Related to a Highway - Roads Unit Measure: km of roadways Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Value ($/km) Paved Roads, urban & semi-urban 27.1 27.1 27.1 27.0 26.8 26.7 26.5 26.4 26.2 26.2 26.2 26.2 26.2 26.2 26.2 $707,300 Paved Roads, rural areas 127.3 127.3 127.3 129.0 130.7 132.4 134.0 135.7 137.4 137.4 137.4 137.4 137.4 137.4 137.4 $353,700 Surface Treated roads 44.1 44.1 44.1 45.6 47.2 48.8 50.3 51.9 53.4 53.4 53.4 53.4 53.4 53.4 53.4 $231,500 Gravel roads 304.1 304.1 304.1 302.0 299.8 297.6 295.5 293.3 291.1 291.1 291.1 291.1 291.1 291.1 291.1 $231,500 Total 503 503 503 504 505 505 506 507 508 508 508 508 508 508 508 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 0.0699 0.0694 0.0691 0.0690 0.0691 0.0688 0.0684 0.0665 0.0653 0.0627 0.0583 0.0549 0.0501 0.0485 0.0480 15 Year Average 2011 to 2025 Quantity Standard 0.0625 Quality Standard $288,862 Service Standard $18,054 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $18,054 Eligible Amount $113,089,442 Watson & Associates Economists Ltd. PAGE B-6 Table B-5 Township of Southgate Services Related to a Highway - Facilities Class of Service: Public Works - Facilities Unit Measure: sq.ft. of building area Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Bld'g Value ($/sq.ft.) Value/sq.ft. with site works, etc. Works Garage - Village Dundalk 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 5,600 $536 $591 Hopeville Yard 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 $536 $591 Holstein Yard 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 $536 $591 Hopeville Storage/Sand Dome 5,900 5,900 5,900 5,900 5,900 5,900 5,900 5,900 5,900 5,900 5,900 5,900 5,900 5,900 5,900 $95 $105 Holstein Sand Dome 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 $95 $105 Storage Shed Holstein 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 $106 $117 Total 28,660 28,660 28,660 28,660 28,660 28,660 28,660 28,660 28,660 28,660 28,660 28,660 28,660 28,660 28,660 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 3.9861 3.9597 3.9374 3.9266 3.9228 3.8993 3.8735 3.7552 3.6805 3.5387 3.2901 3.0977 2.8242 2.7353 2.7053 15 Year Average 2011 to 2025 Quantity Standard 3.5422 Quality Standard $438 Service Standard $1,552 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $1,552 Eligible Amount $9,724,359 Watson & Associates Economists Ltd. PAGE B-7 Table B-6 Township of Southgate Services Related to a Highway - Vehicles Class of Service: Public Works - Vehicles & Equipment Unit Measure: No. of vehicles and equipment Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Value ($/Vehicle) 1 Ton Pickup 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $144,200 Tractor/Loader 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $175,100 Riding Lawn Mower 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $18,800 Bobcat Skid Steer 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $129,100 Tandem Axle Trucks 6 6 6 6 6 6 6 6 6 6 6 6 6 7 7 $535,600 Single Axle Trucks 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 $412,000 Pickup Trucks 5 5 6 6 6 6 6 6 6 6 6 7 8 8 8 $77,300 Bucket Truck 1 1 1 1 - - - - - - - - - - - $475,400 Road Graders 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 $751,900 Wheel Loader 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $283,300 Excavator 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $257,500 Tool Cat 1 1 1 1 - - - - - - - - - - - $79,400 Sidewalk Plow - - - - - 1 1 1 1 1 2 3 3 3 3 $236,900 Vac Trailer - - - - - - - - - 1 1 1 1 1 1 $160,800 $0 Total 28 28 29 29 27 28 28 28 28 29 30 33 34 35 35 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15 Year Average 2011 to 2025 Quantity Standard 0.0036 Quality Standard $340,489 Service Standard $1,226 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $1,226 Eligible Amount $7,678,161 Watson & Associates Economists Ltd. PAGE B-8 Table B-7 Township of Southgate Parks and Recreation - Parkland Development Service: Parkland Development Unit Measure: Acres of Parkland Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Value ($/Acre) Dundalk Memorial Park 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 $81,500 Dales Memorial Park 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 $81,500 Hopeville Ball Park 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 $17,200 Holstein Park 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 $21,300 Total 37 37 37 37 37 37 37 37 37 37 37 37 37 37 37 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 0.0051 0.0051 0.0051 0.0051 0.0051 0.0050 0.0050 0.0048 0.0048 0.0046 0.0042 0.0040 0.0036 0.0035 0.0035 15 Year Average 2011 to 2025 Quantity Standard 0.0046 Quality Standard $51,024 Service Standard $235 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $235 Eligible Amount $1,470,223 Watson & Associates Economists Ltd. PAGE B-9 Table B-8 Township of Southgate Parks and Recreation - Amenities Service: Parkland Amenities Unit Measure: No. of parkland amenities Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Value ($/item) Ball Diamonds - Lit 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 $300,800 Ball Diamond - Unlit 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $56,800 Play Structures/Equipment 6 6 7 7 7 7 7 7 7 7 7 7 7 7 7 $82,700 Picnic Pavilion/Canteen/Washrooms (Hopeville) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $476,400 Concession Booth/Washrooms (Holstein) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $152,200 Picnic Shelter at Dromore 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $44,300 Dundalk Pavilion 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $330,000 Lawn Bowling 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $8,900 Outdoor Pool 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $245,600 Pool Change House 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $179,500 Skateboard Park 1 1 1 1 1 1 1 1 1 $57,000 Picnic Shelter at Holstien 1 1 1 1 1 1 1 1 1 $35,200 Soccer Field 1 1 1 1 1 1 1 $35,200 $0 Total 17 17 18 18 18 18 20 20 21 21 21 21 21 21 21 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 0.0024 0.0023 0.0025 0.0025 0.0025 0.0024 0.0027 0.0026 0.0027 0.0026 0.0024 0.0023 0.0021 0.0020 0.0020 15 Year Average 2011 to 2025 Quantity Standard 0.0024 Quality Standard $155,950 Service Standard $374 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $374 Eligible Amount $2,344,490 Watson & Associates Economists Ltd. PAGE B-10 Table B-9 Township of Southgate Parks and Recreation - Trails Service: Parkland Trails Unit Measure: Linear Metres of Paths and Trails Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Value ($/ Linear Metre) Trails (km) 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 $33,000 Total 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard (per 1,000) 0.0834 0.0829 0.0824 0.0822 0.0821 0.0816 0.0811 0.0786 0.0771 0.0741 0.0689 0.0649 0.0591 0.0573 0.0566 15 Year Average 2011 to 2025 Quantity Standard (per 1,000) 0.0742 Quality Standard $33 Service Standard $2 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $2 Eligible Amount $15,347 Watson & Associates Economists Ltd. PAGE B-11 Table B-10 Township of Southgate Parks and Recreation - Vehicles Service: Parks & Recreation Vehicles and Equipment Unit Measure: No. of vehicles and equipment Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Value ($/Vehicle) Lawn Mower Zero 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 $16,200 Pickup Truck 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 1.5 1.5 $70,400 Tractor 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 2.0 $44,000 Trailer 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 $9,100 Ice Resurfacer 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 $135,300 Total 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 5.5 6.5 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 0.0006 0.0006 0.0006 0.0006 0.0006 0.0006 0.0006 0.0006 0.0006 0.0006 0.0005 0.0005 0.0004 0.0005 0.0006 15 Year Average 2011 to 2025 Quantity Standard 0.0006 Quality Standard $51,333 Service Standard $31 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $31 Eligible Amount $192,931 Watson & Associates Economists Ltd. PAGE B-12 Table B-11 Township of Southgate Parks and Recreation - Facilities Service: Recreation Facilities Unit Measure: sq.ft. of building area Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Bld'g Value ($/sq.ft.) Value/sq.ft. with site works, etc. Arena & Community Centre 31,278 31,278 31,278 31,278 31,278 31,278 31,278 31,278 31,278 31,278 31,278 31,278 31,278 31,278 31,278 $355 $391 Swinton Park Community Hall 1,606 1,606 1,606 1,606 1,606 1,606 1,606 1,606 1,606 1,606 1,606 1,606 1,606 1,606 1,606 $670 $739 F. Macintyre Building 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 $670 $739 Holstein Pavilion 2,646 2,646 2,646 2,646 2,646 2,646 2,646 2,646 2,646 2,646 2,646 2,646 2,646 2,646 2,646 $265 $292 Total 36,610 36,610 36,610 36,610 36,610 36,610 36,610 36,610 36,610 36,610 36,610 36,610 36,610 36,610 36,610 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 5.0918 5.0580 5.0295 5.0158 5.0109 4.9810 4.9480 4.7969 4.7014 4.5203 4.2027 3.9570 3.6076 3.4940 3.4557 15 Year Average 2011 to 2025 Quantity Standard 4.5247 Quality Standard $409 Service Standard $1,852 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $1,852 Eligible Amount $11,602,870 Watson & Associates Economists Ltd. PAGE B-13 Table B-12 Township of Southgate Library Services - Facilities Service: Library Services - Facilities Unit Measure: sq.ft. of building area Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Bld'g Value ($/sq.ft.) Value/sq.ft. with site works, etc. The Ruth Hargrave Memorial Library 5,715 5,715 5,715 5,715 5,715 5,715 5,715 5,821 5,821 5,821 5,821 5,821 5,821 5,821 5,821 $456 $550 Total 5,715 5,715 5,715 5,715 5,715 5,715 5,715 5,821 5,821 5,821 5,821 5,821 5,821 5,821 5,821 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 0.7949 0.7896 0.7851 0.7830 0.7822 0.7776 0.7724 0.7627 0.7475 0.7187 0.6682 0.6292 0.5736 0.5555 0.5495 15 Year Average 2011 to 2025 Quantity Standard 0.7126 Quality Standard $550 Service Standard $392 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $392 Eligible Amount $2,455,237 Watson & Associates Economists Ltd. PAGE B-14 Table B-13 Township of Southgate Library Services - Collection Materials Service: Library Services - Collection Materials Unit Measure: No. of library collection items Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Value ($/item) Volumes and Audiobooks 12,923 12,923 12,923 12,923 12,923 12,923 16,231 17,812 20,337 14,925 15,631 15,631 15,631 15,631 15,631 $78 Uncatalogued Volumes 140 140 140 140 140 140 140 140 140 - $78 Micromaterials - Periodicals and Newspapers 23 23 23 23 23 23 20 20 20 20 20 20 20 20 20 $715 CD-ROMs 1 1 1 1 1 1 - - $61 e-books consortium - - 1 1 1 1 1 1 1 1 1 1 1 1 1 $2,637 e-books - - - 15 15 15 24 24 26 26 26 26 26 26 26 $84 Databases/eresources - - - - - - 3 4 4 4 5 5 5 5 5 $906 Other Loanable Items - - - - - 1 1 1 1 12 12 12 74 74 74 $113 Total 13,087 13,087 13,088 13,103 13,103 13,104 16,420 18,002 20,529 14,988 15,695 15,695 15,757 15,757 15,757 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 1.8202 1.8081 1.7980 1.7952 1.7935 1.7829 2.2192 2.3588 2.6363 1.8506 1.8017 1.6964 1.5527 1.5038 1.4874 15 Year Average 2011 to 2025 Quantity Standard 1.8603 Quality Standard $79 Service Standard $147 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $147 Eligible Amount $923,126 Watson & Associates Economists Ltd. PAGE B-15 Table B-14 Township of Southgate Waste Diversion - Facilities Service: Waste Diversion - Facilities - Stations/Depots Unit Measure: sq.ft. of building area Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Bld'g Value ($/sq.ft.) Value/sq.ft. with site works, etc. Diversion Percentage Egremont Waste Works Garage (60% diversion) 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360 $63 $69 60% Egremont Administration Building (60% diversion) 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 $168 $185 60% Egremont Recycle Building 1,638 1,638 1,638 1,638 1,638 1,638 1,638 1,638 1,638 1,638 1,638 1,638 1,638 1,638 1,638 $58 $64 100% Egremont Transfer Station Special Waste Building 832 832 832 832 832 832 832 832 832 832 832 832 832 832 832 $49 $54 100% Dundalk Transfer Station Special Waste Building 678 678 678 678 678 678 678 678 678 678 678 678 678 678 678 $24 $26 100% Egremont Transfer Station & Compost Pad (75% Diversion) 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 $36 $40 75% Dundalk Transfer Station (60% Diversion) 7,826 7,826 7,826 7,826 7,826 7,826 7,826 7,826 7,826 7,826 7,826 7,826 7,826 7,826 7,826 $36 $40 60% Total 40,085 40,085 40,085 40,085 40,085 40,085 40,085 40,085 40,085 40,085 40,085 40,085 40,085 40,085 40,085 Percentage attributable to Eligible Portion 72% 72% 72% 72% 72% 72% 72% 72% 72% 72% 72% 72% 72% 72% 72% Total Eligible Portion of Facilities 28,749 28,749 28,749 28,749 28,749 28,749 28,749 28,749 28,749 28,749 28,749 28,749 28,749 28,749 28,749 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 3.9985 3.9720 3.9496 3.9388 3.9350 3.9114 3.8855 3.7669 3.6919 3.5497 3.3003 3.1073 2.8330 2.7438 2.7137 15 Year Average 2011 to 2025 Quantity Standard 3.5532 Quality Standard $46 Service Standard $164 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $164 Eligible Amount $1,027,797 Watson & Associates Economists Ltd. PAGE B-16 Table B-15 Township of Southgate Waste Diversion - Vehicles and Equipment Service: Waste Diversion - Vehicles & Equipment Unit Measure: No. of vehicles and equipment Description 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Value ($/Vehicle) Diversion Percentage Roll-off Truck 2018 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $410,700 60% Garage Equipment 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $44,700 60% 20 Yard Bins 1 1 1 1 1 1 1 $17,600 60% 30 Yard Recycle Containers 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 $18,800 60% 40 Yard Bins 11 11 11 11 13 13 13 13 13 13 13 13 13 13 13 $18,800 60% 50 Yard Bins 2 2 2 2 2 2 2 2 2 2 2 2 2 3 3 $21,100 60% Loader 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $352,100 60% Egremont Transfer Station Weigh Scale 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $109,900 60% Collection Truck 2019 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 $453,600 60% Collection Truck 2013 1 1 1 1 1 1 1 1 1 1 1 1 1 $440,100 60% Orange Drop Hazardous Waste Container 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $26,600 100% Total 22 22 23 23 25 25 25 25 27 27 27 27 27 28 28 Percentage attributable to Eligible Portion 61% 61% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% Total Eligible Portion of Facilities 13 13 14 14 15 15 15 15 16 16 16 16 16 17 17 Population 7,190 7,238 7,279 7,299 7,306 7,350 7,399 7,632 7,787 8,099 8,711 9,252 10,148 10,478 10,594 Per Capita Standard 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15 Year Average 2011 to 2025 Quantity Standard 0.0019 Quality Standard $90,453 Service Standard $172 D.C. Amount (before deductions) Buildout Forecast Population 6,264 $ per Capita $172 Eligible Amount $1,076,531 Watson & Associates Economists Ltd. PAGE C-1 Appendix C Long-Term Capital and Operating Cost Examination Watson & Associates Economists Ltd. PAGE C-2 Appendix C: Title 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 Township'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 straight-line amortization method. 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 Tax Supported: 1. Services Related to a Highway 331,585 583,749 915,334 2. Fire Protection Services 288,800 457,008 745,808 3. Parks and Recreation Services 400,308 481,841 882,150 4. Library Services 153,694 329,185 482,879 5. Waste Diversion 6,959 168 7,127 6. Stormwater Drainage and Contro 31,576 - 31,576 7. Wastewater Services 249,340 276,562 525,902 8. Water Services 248,121 283,526 531,647 Total 1,710,383 2,412,040 4,122,423 SERVICE/CLASS Watson & Associates Economists Ltd. PAGE D-1 Appendix D Local Service Policy Watson & Associates Economists Ltd. PAGE D-2 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. Local Service guidelines are summarized as follows: 1. Definitions a) "Road" means a municipally owned road allowance, including the right-of-way (ROW) and Services included in that roadway. b) "Local Roads" means a road or street that is primarily used to gain access to the property bordering it. c) "Collector Roads" means a road or street that is used to receive traffic from local roads, and distribute it to arterials d) "Arterial Roads" means a minor or major through road or street that are expected to carry large volumes of traffic from collector and local roads. e) "Developer" means the company that owns and acting as a leadership role of the project development. f) "Landowner" means the registered owner of the lands in the Ontario Land Registry. g) "Township" means the owner of the municipal Road/blocks/easements and associated services installed in the Road allowance property. h) "Services" means municipal infrastructure installed in the ROW, Township owned property or easement in favor of the Township to provide stormwater, potable water and wastewater servicing to properties fronting onto the road allowance. i) "Area in which the Plan Relates" means projects external to a development that are solely for that development's benefit as per Section 59 of the D.C.A. j) "Municipal Service Area(s)" means a part or section of the service area that receives benefits from and/or is served by a specific local piece of infrastructure. For example, a sewage pumping station that does not serve the entire system. 2. Infrastructure Assets Constructed by Developers All infrastructure assets constructed in the Township of Southgate by Developers shall be in accordance with the following policies and standards: Watson & Associates Economists Ltd. PAGE D-3 a) Southgate's Municipal Servicing Standards; b) Southgate's Residential & Non-Residential Building and Property Service Policy; and c) Southgate's "Municipal Parks & Open Space Standards & Policy" that establishes the following types: i. Community Park; ii. Neighbourhood Park; or iii. Linear Open Space for trails and naturalization areas. 3. Services Related to Roads A road and services related to a road are intended for the transportation of people and goods via many different modes including, but not limited to passenger automobiles, commercial vehicles, transit vehicles, bicycles and pedestrians. The road shall consist of all land and associated infrastructure built to support and service the movement of people and goods regardless of the mode of the type of transportation employed, thereby achieving a complete street. A complete street is the concept whereby a road is planned, designed, operated and maintained to enable pedestrians, cyclists, motorists and goods to safely, efficiently and comfortably be moved. The associated infrastructure to achieve this concept shall include, but is not limited to road pavement structure (asphalt, concrete, granular) and curbs; grade separation/bridge structures (for any vehicles, railways and/or pedestrians); grading, drainage and retaining wall features; culvert structures; storm water drainage/recharge systems; utilities; traffic control systems; signage; gateway features; street furniture; active transportation facilities (e.g. sidewalks, bike lanes, multi-use trails which interconnect the transportation network, etc.); lay-bys; roadway illumination systems; boulevard and median surfaces (e.g. sod & topsoil, paving, driveway ramps etc.); street trees and landscaping; parking lanes & lay-bys and driveway entrances; noise attenuation systems; railings and safety barriers to municipal standards. 3.1. Local Roads a) All Local Roads internal to a development are considered to be the developer's responsibility under s.59 of the D.C.A. as a local service. b) Local Roads external to development inclusive of all land and associated infrastructure requires improvements to support a specific development or required to link with the Area to which the Plan Relates, it is the developer's Watson & Associates Economists Ltd. PAGE D-4 responsibility under s.59 of the D.C.A. Further the justification is where the existing infrastructure is satisfying the current local servicing requirements of the Township, all costs associated with infrastructure upgrades or replacement of services for the Area in which the Plan Relates, and will only benefit the landowner's/developer's project, it is the developers' responsibility. The length and location of road(s) that require reconstruction will be determined by the Township at the time of Draft Approval and will reflect those roads external to the development that, in the opinion of the Township, will be directly impacted by the development and require reconstruction to a higher service level. 3.2. Collector Roads a) Collector Roads internal to development, inclusive of all land and associated infrastructure is a direct developer responsibility under s.59 of the D.C.A. and is a local service. b) If the Collector Road external to development, inclusive of all land and associated infrastructure requires improvements to support a specific development or required to link with the Area to which the Plan Relates, it is the developer's responsibility under s.59 of the D.C.A. Further the justification is where the existing infrastructure is satisfying the current servicing requirements of the Township, all costs associated with infrastructure upgrades or replacement of services for the Area in which the Plan Relates, and will only benefit the landowner's/developer's project, it is the developers' responsibility. The length and location of road(s) that require reconstruction will be determined by the Township at the time of Draft Approval and will reflect those roads external to the development that, in the opinion of the Township, will be directly impacted by the development and require reconstruction to a higher service level. c) Collector Roads external to development, inclusive of all land and associated infrastructure requires upgrades, where other future developable lands benefit, the project should be included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A., dependent on local circumstances. The length and location of road(s) that require reconstruction will be determined by the Township at the time of Draft Approval and will reflect those roads external to the development that, in the opinion of the Township, will be directly impacted by the development and require reconstruction to a higher service level. 3.3. Arterial Roads Watson & Associates Economists Ltd. PAGE D-5 a) Arterial Roads internal to development, inclusive of all land and associated infrastructure is a direct developer responsibility under s.59 of the D.C.A. and is a local service. b) New, widened, extended or upgraded arterial roads that are external to development, inclusive of all associated infrastructure, should be included as part of the Services Related to a Highway program and included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. The length and location of road(s) that require reconstruction will be the determined by the Township at the time of Draft Approval and will reflect those roads external to the development that, in the opinion of the Township, will be directly impacted by the development and require reconstruction to a higher service level. c) If the new, widened, extended or upgraded Arterial Road that is external to development, inclusive of all land and associated infrastructure requires improvements to support a specific development or required to link with the Area to which the Plan Relates, it is the developer's responsibility under s.59 of the D.C.A. Further the justification is where the existing infrastructure is satisfying the current servicing requirements of the Township, all costs associated with infrastructure upgrades or replacement of services for the Area in which the Plan Relates, and will only benefit the landowner's/developer's project, it is the developers' responsibility. The length and location of road(s) that require reconstruction will be determined by the Township at the time of Draft Approval and will reflect those roads external to the development that, in the opinion of the Township, will be directly impacted by the development and require reconstruction to a higher service level. d) Land acquisition for arterial roads on existing rights-of-way to achieve a complete street dedication under the Planning Act provisions (s. 41, 51 and s. 53) through development lands, in an area with limited development should be included as part of the roads program included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. e) Land acquisition for arterial roads on new rights-of-way to achieve a complete street dedication, where possible, under the Planning Act provisions (s. 51 and s. 53) through development lands up, to the ROW specified in the Official Plan should be included as part of the roads program and included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. f) Land acquisition beyond normal dedication requirements to achieve transportation corridors as services related to roads, including grade separation infrastructure for the movement of pedestrians, cyclists, public transit and/or Watson & Associates Economists Ltd. PAGE D-6 railway vehicles, should be included as part of the roads program and included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. 4. Bridges and Culverts a) Bridges and culverts internal to development - All structures that service local and collector roads internal to a plan of subdivision, or in the area to which the plan relates, are direct developer responsibility under s.59 of the DCA. b) Bridges and culverts external to development on a Local Road adjacent to the development may be included in Municipal DC where existing and/or other developments will benefit. However, if the present structures serve the existing municipal use and it is in the opinion of the Township, that the increased type/volume of traffic flow will be directly impacted by the subject development, and the Township will require replacement/upgrading of the structures to a higher service level with consideration for present and required load carrying capacity, these works will be direct developer responsibility under s.59 of D.C.A. c) Bridges and culverts external to the development associated with Arterial and Collector Roads; the project should be included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. The length and location of each bridge or culvert required to be replaced or upgraded will be the determined by the Township at the time of Draft Approval and will reflect those bridges and culverts external to the development that, in the opinion of the Township, will be directly impacted by the development and require reconstruction to a higher service level. Project will be inclusive of all land requirements and associated infrastructure. d) Bridges and culverts external to the development associated with Arterial and Collector Roads to support a specific development, or required to link with the Area to which the Plan Relates; it is the developer's responsibility under s.59 of the D.C.A. Further the justification is where the existing infrastructure is satisfying the current servicing requirements of the Township, all costs associated with infrastructure upgrades or replacement of services for the Area in which the Plan Relates, that will only benefit the landowner's/developer's project, is the developers' responsibility. The length and location of each bridge or culvert required to be replaced or upgraded will be the determined by the Township at the time of Draft Approval and will reflect those bridges and culverts external to the development that, in the opinion of the Township, will be directly impacted by the development and require reconstruction to a higher service Watson & Associates Economists Ltd. PAGE D-7 level. Project will be inclusive of all land requirements and associated infrastructure. 5. Traffic Control Systems, Signals and Intersection Improvements a) Infrastructure located on local or collector roads, or for any private site entrances or entrances to specific development, are direct developer responsibility under s.59 of D.C.A., as a local service to the project. b) Infrastructure located on new arterial roads and arterial road improvements unrelated to a specific development, should be included as part of the road program and included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. c) Infrastructure located on arterial or collector road intersections with Township roads, are a Township responsibility, or in certain circumstances, may be a direct developer responsibility under s.59 of the D.C.A. d) Intersection improvements, new or modified signalization, signal timing & optimization plans, and area traffic studies for roads attributed to growth and unrelated to a specific development, should be included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. 6. Streetlights a) Streetlights on new arterial roads and existing arterial road improvements is considered part of the complete street and included as part of the road program and should be included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. or in exceptional circumstances, may be direct developer responsibility through local service provisions (s.59 of D.C.A.). b) Streetlights on local and collector roads internal to development is considered part of the complete street and included as a direct developer responsibility under s.59 of the D.C.A., as a local service. c) Streetlights on local and collector roads external to development, needed to support a specific development or required to link with the area to which the plan relates is considered part of the complete street and included as a direct developer responsibility under s. 59 of the D.C.A., as a local service. 7. Active Transportation related to Pedestrian and Cycling Facilities Watson & Associates Economists Ltd. PAGE D-8 a) Sidewalks, multi-use trails, cycle tracks, and bike lanes, inclusive of all required infrastructure, located within arterial roads and provincial highway corridors is considered part of the complete street and included in D.C.'s, or, in exceptional circumstances, may be direct developer responsibility through local service provisions (s.59 of D.C.A.). b) Sidewalks, multi-use trails, cycle tracks, and bike lanes, inclusive of all required infrastructure, located within the development or linking to non-arterial road corridors internal to development is considered part of the complete street and a direct developer responsibility under s.59 of D.C.A., being a local service. c) Pedestrian traffic signals- funding responsibility linked to the road funding source identified in 3.1, 3.2, and 3.3 . d) Other sidewalks, multi-use trails, cycle tracks, and bike lanes, inclusive of all required infrastructure, located within local and collector road corridors external to development and needed to support a specific development or required to link with the area to which the plan relates, is a direct developer responsibility under s.59 of D.C.A., being a local service. e) Multi-use trails within the development or to connect to local existing trails external to the development, not associated with a road, inclusive of all land and required infrastructure, that go beyond the function of a parkland recreational trail and form part of the Township's active transportation network for cycling and/or walking, is a direct developer responsibility under s.59 of D.C.A., being a local service. f) Multi-use trails external to the development, not associated with a road, inclusive of all land and required infrastructure, that go beyond the function of a parkland recreational trail and form part of the Township's active transportation network for cycling and/or walking, should be included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. 8. Noise Abatement Measures a) Noise abatement measures external and internal to development where it is related to, or a requirement of a specific development, is a direct developer responsibility under s.59 of D.C.A. (as a local service). b) Noise abatement measures on new arterial roads and existing arterial road improvements abutting an existing community and unrelated to a specific development: should be included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A.. Watson & Associates Economists Ltd. PAGE D-9 9. Parkland and Open Space Development 9.1. Recreational Trails a) Recreational trails or multi-use trails that do not form part of the Township's active transportation network, and their associated infrastructure (landscaping, bridges, trail surface, etc.), should be included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. b) Trails internal to a development or linking a development to external trails, that are approved through a subdivision agreement, are a direct developer responsibility under s.59 of D.C.A., being a local service 9.2. Parkland a) Parkland development for Neighbourhood Parks and Open Space for trails and naturalization areas is a direct developer responsibility to provide an appropriate standard, as defined in the Township of Southgate Municipal Parks & Open Space Development Standards & Policy, as a local service provision, including but not limited to pre-grading, sodding or seeding, supply and installation of amended topsoil to the Township's required depth, landscape features, perimeter fencing, servicing, utilities, signage and all planting. b) Parkland Development for Community Parks should be included in the DC calculation to the extent permitted under s.5(1) of the D.C.A. c) Program facilities, amenities, and furniture, within Neighbourhood parkland should be included in the DC calculation to the extent permitted under s.5(1) of the D.C.A. or in exceptional circumstances, may be direct developer responsibility through local service provisions (s.59 of D.C.A.). Note: For more detail on park and open space standards and policies please refer to the Township of Southgate's "Municipal Parks & Open Space Standards & Policy". 10. Landscape Buffer Blocks, Features, Cul-De-Sac Islands, Berms, Grade Transition Areas, Walkway Connections to Adjacent Arterial Roads, Open Space, Etc. The cost of developing all landscape buffer blocks, landscape features, cul-de-sac islands, berms, grade transition areas, walkway connections to adjacent arterial roads, Watson & Associates Economists Ltd. PAGE D-10 open space and other remnant pieces of land conveyed to the Township shall be a direct developer responsibility as a local service. Such costs include, but are not limited to pre-grading, sodding or seeding, supply and installation of amended topsoil (to the Township's required depth), landscape features, perimeter fencing, servicing, utilities, signage, retaining walls and amenities and all planting. 11. Natural Heritage System (N.H.S.) N.H.S. includes engineered and existing stream corridors, natural buffers for woodlots, wetland remnants, etc. within the boundaries of the Township. N.H.S. is a direct developer responsibility as a local service provision including, but not limited to the following: a) Riparian planting and landscaping requirements (as required by the Township, Conservation Authority or other authorities having jurisdiction) as a result of creation of, or construction within in the N.H.S. and associated buffers. b) Perimeter fencing of the N.H.S. to the Township standard located on the public property side of the property line adjacent land uses (residential, industrial, commercial) as required by the Township. c) All works to be in conformance with the Conservation Authority (CA) and/or Department of Fisheries & Oceans (DFO) guidelines/requirements for stream corridors, natural buffers and wetland areas as directed by the approved studies and reports related to the area that development occurs in. 12. Land Acquisition for Road Allowance a) Land acquisition for arterial roads for dedication under the Planning Act subdivision provisions (s.51), through development lands with greater than a 27m right-of-way; for corridor acquisition, should be included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. b) Land Acquisition for collector roads for dedication under the Planning Act subdivision provisions (s.51), through development lands with up to 27 m right-of- way, for corridor acquisition, should be a direct developer responsibility under s.59 of the D.C.A. as a local service. c) Land acquisition for local roads is a direct developer responsibility under s.59 of the D.C.A. as a local service. 13. Land Acquisition for Easements & Registration Watson & Associates Economists Ltd. PAGE D-11 Easement costs external to subdivisions required to support the development are a direct developer responsibility under s.59 of the D.C.A as a local service. Where other future developable lands will benefit, the costs should be included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. 14. Stormwater Management a) Stormwater management facilities for quality and/or quantity control that is internal to the development, including land acquisition, all associated infrastructure, landscaping, perimeter fencing if required and monitoring is a direct developer responsibility under s.59 of D.C.A., being a local service. b) Stormwater management works, external to the development, that benefits multiple developments, will be subject to negotiations and cost sharing agreements between affected landowner(s) or included in the D.C. calculation subject to local circumstances. c) Stormwater management works that are required for a specific development, either internal or external to the Area to which the Plan Relates is a direct developer responsibility under s. 59 of the D.C.A. as a local service. d) Erosion works internal or within area related to the development, inclusive of all restoration requirements, related to a development application is a direct developer responsibility under s. 59 of the D.C.A. as a local service. e) Basement and foundation drain gravity systems (third pipe drainage systems) that are placed in the public road allowance, within the area related to a development, is a direct developer responsibility under s. 59 of the D.C.A. as a local service. Developers should be further aware that when selling properties with a third pipe drainage system that they communicate to their buyers an area rated monthly maintenance charge will be added to bi-monthly water and wastewater billings where applicable. f) A third pipe drainage system outlet or a connection to the existing municipal systems internal to the plan of subdivision or external, within the area to which the plan relates, is a direct developer responsibility under s. 59 of the D.C.A. as a local service. 15. Water a) Area wide water system features internal and external to the development including storage facilities, pumping stations, booster stations, re-chlorination Watson & Associates Economists Ltd. PAGE D-12 stations and wells associated with Municipal Service Area(s) should be included within the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. b) Watermains, appurtenances and sampling stations internal to the development are direct developer responsibility under s.59 of the DCA as a local service. c) Watermains external to a plan of subdivision, which upgrade the size of the main or provides new watermains of 250 mm nominal diameter or greater (over sizing), should be included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. d) Over sizing costs of waterworks within the plan of subdivision greater than 250 mm nominal diameter should be included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. e) Extension of watermain external to the development required to connect a specific development/area to the existing distribution system to be direct developer's responsibility under s.59 of the D.C.A. as a local service. f) The expansion of the Township's Water Meter Collection System ("Advanced Metering Infrastructure" (AMI)), to extend the data collectors service area where others outside the development benefit, the costs should be included in D.C. calculation to the extent permitted under s.5(1) of the D.C.A. 16. Wastewater a) Pumping stations and forcemains external, or internal, to the development and associated with a Municipal Service Area, should be included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. b) Pumping stations and forcemains internal to a development, required to service that specific development shall be a direct developer responsibility under s.59 of the D.C.A. as a local service. c) Sewers and appurtenances internal to the development are direct developer responsibility under s.59 of the D.C.A. as a local service d) Sanitary sewers and forcemains external to a plan of subdivision, which upgrades the size of an existing pipe to accommodate only the specific development is a direct developer responsibility under s.59 of the D.C.A as a local service. If the upgraded pipe is intended to service additional future developable lands the incremental costs should be included in the D.C. calculation to the extent permitted under s.5(1) of the D.C.A. e) Marginal costs of sanitary sewer works within the plan of subdivision, which benefits upstream developers, should be included in the D.C. calculation to the Watson & Associates Economists Ltd. PAGE D-13 extent permitted under s.5(1) of the D.C.A. The marginal costs include sewer oversizing above 300 mm nominal diameter or additional sewer depth of 2 meters or greater than required for local servicing. Note: Please refer to the Township's policy, titled "Residential and Non-residential Building and Property Service Policy" for detailed information on the Township of Southgate's building and property specific requirements. The policy is specifically for new construction development, to provide to builders or property owners the requirements for civic number addressing, waste collection carts and water metering. Watson & Associates Economists Ltd. PAGE E-1 Appendix E Changes to the D.C.A. Watson & Associates Economists Ltd. PAGE E-2 Appendix E: Changes to the D.C.A. Since the passage of the Township's previous D.C. by-law, there have been a number of changes to the D.C.A. This appendix summarizes the changes. E.1 Changes to the D.C.A.: Bill 213 and Bill 109 E.1.1 Bill 213: Better for People, Smarter for Business Act, 2020 On December 8, 2020, Bill 213 received Royal Assent. One of the changes of the Bill that took effect upon Royal Assent included amending the Ministry of Training, Colleges and Universities Act by introducing a new section that would exempt the payment of D.C.s for developments of land intended for use by a university that receives operating funds from the Government. As a result, this mandatory exemption will be included in the D.C. by-law. E.1.2 Bill 109: More Homes for Everyone Act, 2022 On April 14, 2022, Bill 109 received Royal Assent. One of the changes of the Bill and Ontario Regulation (O. Reg.) 438/22 that took effect upon Royal Assent included amending the D.C.A. and O. Reg. 82/98 related to the requirements for the information which is to be included in the annual Treasurer's statement on D.C. reserve funds and the requirement for publication of the statement. - The following additional information must be provided for each D.C. service being collected for during the year: 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; and 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 - For any service for which a D.C. was collected during the year but in respect of which no money from a reserve fund was spent during the year, a statement as to why there was no spending during the year. Watson & Associates Economists Ltd. PAGE E-3 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. E.2 Changes to the D.C.A. - Bill 23: More Homes Built Faster Act, 2022 On November 28, 2022, Bill 23 received Royal Assent. This Bill amended a number of pieces of legislation including the Planning Act and D.C.A. The following provides a summary of the changes to the D.C.A.: E.2.1 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 buildings or ancillary structures contain any residential units; and o One residential unit in a building or structure ancillary to a detached, semi-detached, or rowhouse on a parcel of urban land, if the detached, semi-detached, or rowhouse contains no more than two residential units and no other buildings or ancillary structures contain any residential units. E.2.2 Removal of Housing as an Eligible D.C. Service Housing is removed as an eligible service as of November 28, 2022. Municipalities with by-laws that include a charge for housing services can no longer collect for this service. It is noted that the charge for housing services is still applicable where rates have been frozen for the purposes of instalment payments under the D.C.A. Watson & Associates Economists Ltd. PAGE E-4 E.2.3 New Statutory Exemption for Non-Profit Housing Non-profit housing units are exempt from D.C.s and D.C. instalment payments due after November 28, 2022. E.2.4 New Statutory Exemptions for Affordable Units, Attainable Units, and Affordable Inclusionary Zoning Units Affordable units, attainable units, and inclusionary zoning units (affordable) are exempt from the payment of D.C.s, as follows: - Affordable Rental Units: Where rent is no more than 80% of the average market rent as defined by a new bulletin published by the Ministry of Municipal Affairs and Housing. - Affordable Owned Units: Where the price of the unit is no more than 80% of the average purchase price as defined by a new bulletin published by the Ministry of Municipal Affairs and Housing. Note: As discussed in Section H.2.13, the definitions above of an Affordable Rental Unit and Affordable Owned Unit have been modified through Bill 134. - Attainable Units: Excludes affordable units and rental units; will be defined as prescribed development or class of development and sold to a person who is at "arm's length" from the seller. Note: for affordable and attainable units, the municipality shall enter into an agreement that ensures the unit remains affordable or attainable for 25 years. Note: the above Affordable Owned and Rental Unit exemptions came into force as of June 1, 2024. At the time of writing, it is not known when the exemption for Attainable Units will be in force. - Inclusionary Zoning Units: Affordable housing units required under inclusionary zoning by-laws are exempt from a D.C. Watson & Associates Economists Ltd. PAGE E-5 E.2.5 Historical Level of Service Extended to 15-Year Period Instead of the Historical 10-Year Period Prior to Bill 23, the increase in need for service was limited by the average historical level of service calculated over the 10-year period preceding the preparation of the D.C. background study. This average is now extended to the historical 15-year period. E.2.6 Revised Definition of Capital Costs The definition of capital costs has been revised to remove studies. Further, the regulations to the Act may prescribe services for which land or an interest in land will be restricted. Note: the definition of capital costs was revised to reverse the change related to studies through Bill 185 (see Section H.3.1). E.2.7 Mandatory Phase-in of a D.C. For all D.C. by-laws passed after January 1, 2022, the charge must be phased-in annually over the first five years the by-law is in force, as follows: - Year 1 - 80% of the maximum charge; - Year 2 - 85% of the maximum charge; - Year 3 - 90% of the maximum charge; - Year 4 - 95% of the maximum charge; and - Year 5 to expiry - 100% of the maximum charge. Note: this change was reversed by Bill 185 (discussed in section H.3.2). E.2.8 D.C. By-law Expiry A D.C. by-law now expires 10 years after the day it comes into force (unless the by-law provides for an earlier expiry date). This extends the by-law's life from five (5) years, prior to Bill 23. E.2.9 Installment Payments 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 a D.C. Watson & Associates Economists Ltd. PAGE E-6 E.2.10 Rental Housing Discount The D.C. payable for rental housing development will be reduced based on the number of bedrooms in each unit as follows: - Three or more bedrooms - 25% reduction; - Two bedrooms - 20% reduction; and - All other bedroom quantities - 15% reduction. E.2.11 Maximum Interest Rate for Instalments and Determination of Charge for Eligible Site Plan and Zoning By-law Amendment Applications No maximum interest rate was previously prescribed. As per Bill 23, the maximum interest rate is set at the average prime rate plus 1%. This maximum interest rate provision would apply to all instalment payments and eligible site plan and zoning by- law amendment applications occurring after November 28, 2022. E.2.12 Requirement to Allocate Funds Received Annually, beginning in 2023, municipalities are required to spend or allocate at least 60% of the monies in a reserve fund at the beginning of the year for water, wastewater, and services related to a highway. Other services may be prescribed by the regulation. E.2.13 Bill 134: Affordable Homes and Good Jobs Act, 2023 The exemption for affordable residential units was included in the More Homes Built Faster Act (Bill 23), enacted by the Province on November 28, 2022. Under this legislation, affordable residential units were defined within subsection 4.1 of the D.C.A. and exemptions for D.C.s were provided in respect of this definition. While the legislation was enacted in November 2022, the ability for municipalities to implement the exemptions is based on the "Affordable Residential Units for the Purposes of the Development Charges Act, Bulletin" published by the Minister of Municipal Affairs and Housing. This bulletin informs the average market rent and purchase price to be used in determining which developments qualify as affordable residential units. This bulletin was published on April 5, 2024. Bill 134 received Royal Assent on December 4, 2023 and provides for a modification to the affordable residential unit definition by: Watson & Associates Economists Ltd. PAGE E-7 - Introducing an income-based test for affordable rent and purchase price; and - Increasing the threshold for the market test of affordable rent and purchase price. This change provides the exemption based on the lesser of the two measures. Moreover, the rules in subsection 4.1 of the D.C.A. are unchanged with respect to: - The tenant and purchaser transacting the affordable unit being at arm's length; - The intent of maintaining the affordable residential unit definition for a 25-year period, requiring an agreement with the municipality (which may be registered on title); and - Exemptions for attainable residential units and associated rules (requiring further regulations). The following table provides a comparison of the definitions provided through Bill 23 and those provided through Bill 134 (underlining added for emphasis). Item Bill 23 Definition Bill 134 Definition (Current D.C.A. Definition) Affordable residential unit rent (subsection 4.1 (2), para. 1) The rent is no greater than 80 per cent of the average market rent, as determined in accordance with subsection (5). The rent is no greater than the lesser of, i. the income-based affordable rent for the residential unit set out in the Affordable Residential Units bulletin, as identified by the Minister of Municipal Affairs and Housing in accordance with subsection (5), and ii. the average market rent identified for the residential unit set out in the Affordable Residential Units bulletin. Average market rent/rent based on income (subsection 4.1 (5)) for the purposes of subsection 4.1 (2), para. 1 The average market rent for the year in which the residential unit is occupied by a tenant, as identified in the bulletin entitled the "Affordable Residential The Minister of Municipal Affairs and Housing shall, (a) determine the income of a household that, in the Minister's opinion, is at Watson & Associates Economists Ltd. PAGE E-8 Item Bill 23 Definition Bill 134 Definition (Current D.C.A. Definition) Units for the Purposes of the Development Charges Act, 1997 Bulletin." the 60th percentile of gross annual incomes for renter households in the applicable local municipality; and (b) identify the rent that, in the Minister's opinion, is equal to 30 per cent of the income of the household referred to in clause (a). Affordable residential unit ownership (subsection 4.1 (3), para. 1) The price of the residential unit is no greater than 80 per cent of the average purchase price, as determined in accordance with subsection (6). The price of the residential unit is no greater than the lesser of, i. the income-based affordable purchase price for the residential unit set out in the Affordable Residential Units bulletin, as identified by the Minister of Municipal Affairs and Housing in accordance with subsection (6), and ii. 90 per cent of the average purchase price identified for the residential unit set out in the Affordable Residential Units bulletin. Average market purchase price/purchase price based on income (subsection 4.1 (6)) for the purposes of subsection 4.1 (3), para. 1 The average purchase price for the year in which the residential unit is sold, as identified in the bulletin entitled the "Affordable Residential Units for the Purposes of the Development Charges Act, 1997 Bulletin," as it is amended from time to time, that is published by the Minister of Municipal Affairs and Housing on a website of the Government of Ontario. The Minister of Municipal Affairs and Housing shall, (a) determine the income of a household that, in the Minister's opinion, is at the 60th percentile of gross annual incomes for households in the applicable local municipality; and (b) identify the purchase price that, in the Minister's opinion, would result in annual accommodation costs Watson & Associates Economists Ltd. PAGE E-9 Item Bill 23 Definition Bill 134 Definition (Current D.C.A. Definition) equal to 30 per cent of the income of the household referred to in clause (a) Note: the Affordable Unit exemption came into force on June 1, 2024. E.3 Bill 185: Cutting Red Tape to Build More Homes Act On April 10, 2024, the Province released Bill 185: Cutting Red Tape to Build More Homes Act. The Bill received Royal Assent on June 6, 2024. This Bill reversed many of the key changes that were implemented through Bill 23. The following sections provide a summary of the changes. E.3.1 Revised Definition of Capital Costs Bill 185 reversed the capital cost amendments of Bill 23 by reinstating studies as an eligible capital cost. The following paragraphs were added to subsection 5(3) of the D.C.A.: 5. Costs to undertake studies in connection with any of the matters referred to in paragraphs 1 to 4. 6. Costs of the development charge background study required under section 10. E.3.2 Removal of the Mandatory Phase-in As noted in Section H.2 above, Bill 23 required the phase-in of charges imposed in a D.C. by-law over a five-year term for any by-laws passed after January 1, 2022. Bill 185 removed this mandatory phase-in. This change is effective for any D.C. by-laws passed after Bill 185 came into effect. For site plan and zoning by-law amendment applications that were made prior to Bill 185 receiving Royal Assent, the charges payable will be the charges that were in place on the day the planning application was made (i.e., including the mandatory phase-in). Watson & Associates Economists Ltd. PAGE E-10 E.3.3 Process for Minor Amendments to D.C. By-laws Section 19 of the D.C.A. requires that a municipality must follow sections 10 through 18 of the D.C.A. (with necessary modifications) when amending D.C. by-laws. Sections 10 through 18 of the D.C.A. generally require the following: - Completion of a D.C. background study, including the requirement to post the background study 60 days prior to passage of the D.C. by-law; - Passage of a D.C. by-law within one year of the completion of the D.C. background study; - A public meeting, including notice requirements; and - The ability to appeal the by-law to the Ontario Land Tribunal. Bill 185 allows municipalities to undertake minor amendments to D.C. by-laws for the following purposes without adherence to the requirements noted above (with the exception of the notice requirements): 1. To repeal a provision of the D.C. by-law specifying the date the by-law expires or to amend the provision to extend the expiry date (subject to the 10-year limitations provided in the D.C.A.); 2. To impose D.C.s for studies, including the D.C. background study; and 3. To remove the provisions related to the mandatory phase-in of D.C.s. Minor amendments related to items 2 and 3 noted above may be undertaken only if the D.C. by-law being amended was passed after November 28, 2022, and before Bill 185 took effect. Moreover, the amending by-law must be passed within six months of Bill 185 coming into effect. Notice requirements for these minor amending by-laws are similar to the typical notice requirements, with the exception of the requirement to identify the last day for appealing the by-law (as these provisions do not apply). E.3.4 Reduction of D.C. Rate Freeze Timeframe Bill 108 provided for the requirement to freeze the D.C.s imposed on developments subject to a site plan and/or a zoning by-law amendment application. The D.C. rate for these developments is "frozen" at the rates that were in effect at the time the site plan Watson & Associates Economists Ltd. PAGE E-11 and/or zoning by-law amendment application was submitted (subject to applicable interest). Once the application is approved by the municipality, if the date the D.C. is payable is more than two years from the approval date, the D.C. rate freeze would no longer apply. Bill 185 reduced the two-year timeframe to 18 months. E.3.5 Modernizing Public Notice Requirements The D.C.A. sets out the requirements for municipalities to give notice of public meetings and of by-law passage. These requirements are prescribed in sections 9 and 10 of O. Reg. 82/98 and include giving notice in a newspaper of sufficiently general circulation in the area to which the by-law would apply. The regulatory changes modernized public notice requirements by allowing municipalities to provide notice on a municipal website if a local newspaper is not available. E.4 Bill 17: Protect Ontario by Building Faster and Smarter Act, 2025 On May 12, 2025, the Province released Bill 17: Protect Ontario by Building Faster and Smarter Act, 2025. The Bill received Royal Assent on June 5, 2025. This Bill introduces some additional exemptions, changes to the timing of payment for residential D.C.s, and provides regulatory authority to make future changes. The following subsections provide a summary of the changes: E.4.1 Deferral of Residential D.C. Payments to Occupancy Changes to section 26.1 of the D.C.A. provide that a D.C. payable for residential development (other than rental housing developments, which are subject to payment in instalments) are payable upon the earlier of the issuance of an occupancy permit, or the day the building is first occupied. Only under circumstances prescribed in the regulations may the municipality require a financial security. As such, the prescribed circumstances may allow for securities when no occupancy permit is required. Municipalities shall not impose interest on the deferral of D.C. payment to occupancy. Watson & Associates Economists Ltd. PAGE E-12 E.4.2 Removal of Interest for Legislated Instalments Changes to section 26.1 of the Act remove the ability to charge interest on instalments for rental housing and institutional development. This also applies to future instalments for existing deferrals. E.4.3 Early Payment for Residential/Institutional Changes provide that a person required to pay a D.C. for residential or institutional development (i.e. instalments or at occupancy), can pay earlier without the requirement to enter into an early payment agreement. E.4.4 Exemption for Long-term Care Homes Before this change, long-term care homes were subject to the instalment payment provisions of the D.C.A. As of June 5, 2025, Long-term care homes are exempt from D.C.s, as well as all future instalment payments, where applicable. E.4.5 Revised Definition of Capital Costs Section 5(3) of the D.C.A. provides for a definition of capital costs that are eligible for inclusion in the D.C. calculations. The changes introduced by Bill 17 added the following wording to the beginning of the section: "Subject to the regulations". As such, the Province may make changes to limit the definition of capital costs via changes to the D.C. regulations. E.4.6 Expanded Simplified D.C. By-law Amendment Process In addition to the reason for the simplified process set out in Section H.3.3, a D.C. by- law may now also be amended through the simplified amendment process to repeal the indexing provision or decrease the D.C. for one or more types of development. E.4.7 Lower Charge - Current vs. Rate Freeze This change provides that the municipality must charge the lower of the D.C. calculated with the rate freeze (including interest) and the D.C. at current rates at the time the D.C. is payable. This change assists where municipalities reduce their D.C. and therefore can impose the reduced D.C. in cases where the rate freeze applies. Watson & Associates Economists Ltd. PAGE E-13 E.4.8 Grouping of Services for the Purposes of Using Credits This change provides the Province with the ability to make changes through the regulations to group D.C. services together for the purposes of applying D.C. credits. E.4 Bill 60: Fighting Delays, Building Faster Act, 2025 The Provincial government introduced Bill 60, Fighting Delays, Building Faster Act, 2025 and Regulatory Proposals MMAH2018 and 25MMAH030 on October 23, 2025. The Bill received Royal Assent on November 27, 2025. The following subsections provide a summary of the changes: E.4.1 Addition of Class of Service for Land Acquisition The legislative change provides for land acquisition as a separate class of service1. Anticipated land acquisition capital needs are to be grouped together for the purposes of the D.C. calculations. Land acquisition capital needs are also to be excluded from the historical Level of Service calculations. The anticipated capital costs for land are restricted to 10 years for all services except the following: - Water; - Wastewater; - Stormwater; - Service related to a Highway; - Electrical; - Transit; - Police; and - Fire. As land acquisition is considered a class of service, municipalities are required to establish a separate reserve fund for these capital costs. As such, funds are to be segregated for this purpose only and used solely for land costs. Similar to other reserve 1 Section 7 of the D.C.A. states that a class of service may be established for the purposes of a D.C. by-law that is a combination of D.C. eligible services or a subset of a D.C. eligible service. Watson & Associates Economists Ltd. PAGE E-14 funds, monies in this reserve fund can be borrowed and repaid, with interest. With respect to credits, municipalities need to ensure appropriate accounting of credits for land separately from credits for other applicable services. Section 35 of the D.C.A. is amended to add an exception to the use of monies in established reserve funds. This section states that monies in a reserve fund can be used for land acquisition, however, they cannot be used for land acquisition if those costs are to be paid for with the reserve fund established for land acquisition. E.4.2 Required Timelines for the Annual Treasurer's Statement Section 43(1) of the Act has been amended to require the Treasurer's statements to be completed by June 30 of each year (previously based on a date determined by Council). Further, Section 43(3) of the Act is amended to require a copy of the Treasurer's statement to be submitted to the Minister by July 15 of each year. E.4.3 Addition of Requirements for Local Service Policies Subsections 59(2.2) through 59(2.11) of the Act generally set out the following: - A Local Service Policy is required for all D.C. eligible services to which a D.C. by-law imposes a charge and where some part of the service will be provided as a local service; - A Local Service Policy is required to impose a condition of local services on development and only to the extent it has been identified in the Local Service Policy. That is, a municipality could not require a work or classes of work to be provided as a local service if it is not identified as such in the Local Service Policy; o This does not apply where a municipality does not impose a D.C. for that service; o This applies the day a municipality establishes the Local Services Policy or 18 months after Bill 60 received Royal Assent; - Required content for a Local Service Policy: o Works or classes of works related to development that are intended to be required as a Local Service - Optional content for a Local Service Policy: o Works or classes of works that are not intended to be required as a Local Service; Watson & Associates Economists Ltd. PAGE E-15 o Works or classes of works that are partially required as a Local Service; - The municipality shall give a copy of the Local Service Policy to the Minister of Municipal Affairs and Housing upon request, by the date requested; and - The Local Service Policy must be reviewed, requiring a resolution of Council declaring if a revision is needed. The Resolution shall be passed at the time of passing any D.C. by-law or when a revision to the policy is required. E.4.4 Requirement to Provide Documents to the Minister Changes to Section 10 and Section 13 of the D.C.A. require municipalities to provide copies of documents to the Minister upon request, by the date requested. In addition, section 59(2.8) of the Act requires a copy of the Local Service Policy to be provided to the Minister upon request, by the date requested. E.4.5 Regulatory Changes Bill 60 also provided for regulatory changes to Ontario Regulation 82/98. These changes are with respect to the following matters: Merging of Credits This change merges water supply services and wastewater services for the purposes of credits. As provided in subsection 2 (4) of the D.C.A., the D.C.-eligible services of water supply and wastewater include distribution and treatment, and sewers and treatment, respectively. Transparency of B.T.E. Calculations Regulatory changes require municipalities to provide greater details with respect to how the growth-related and non-growth-related shares of the costs are determined. This appears to be required for each service, rather than on a project-by-project basis. Details of Land Acquisition Section 8 of Ontario Regulation 82/98 has been amended to require land acquisition costs to be included in the D.C. background presentation of: - The total of the estimated capital costs relating to the service; Watson & Associates Economists Ltd. PAGE E-16 - The allocation of the total of the estimated costs between costs that would benefit new development and costs that would benefit existing development; - The total of the estimated capital costs relating to the service that will be incurred during the term of the proposed development charge by-law; - The allocation of the costs incurred during the term of the proposed by-law between costs that would benefit new development and costs that would benefit existing development; and - The estimated and actual value of credits that are being carried forward relating to the service. Information Accessibility The changes increase reporting requirements for the Annual Treasurer's Statements to include: - The amount from each reserve fund that was committed to a project, but had not been spent, as of the end of the year; - The amount of debt that had been issued for a project as of the end of the year; and - Identify where in the D.C. background study the project's capital costs were estimated. This does not apply in circumstances where a municipality uses a unique identifier in both background studies and treasurer's statements to identify each project. Watson & Associates Economists Ltd. PAGE F-1 Appendix F Benefit to Existing Methodology Watson & Associates Economists Ltd. PAGE F-2 Appendix F: Benefit to Existing Methodology Based on the regulatory changes provided through Bill 60: Fighting Delays, Building Faster Act, 2025, there is a requirement to provide greater detail with respect to how the non-growth-related shares (i.e. B.T.E. deduction methodology) of the total estimated costs are determined for each service. The following provides this information on a service-by-service basis as well as a description of how the capital costs were estimated. Table F-1 Methodology for Determining Capital Costs and B.T.E. Calculations Service B.T.E. Calculation Methodology Fire Protection Services Equipment: Expansion of bunker gear costs include additional sets of gear for existing firefighters. The costs related to this increase in level of service have been deducted from the total project cost. Studies: The master plan update has been allocated 25% to existing development in recognition of that although fire master plans are generally undertaken to identify the new capital projects that are required to accommodate new development, there is a benefit to the existing community. Services Related to a Highway Roads & sidewalks: Projects that are required for new development but will also benefit new development proportionally have a B.T.E. calculated based on the existing population share of future population in alignment with the Township's prior D.C. Background Study. Studies: Roads-related studies have been allocated 50% to existing development in recognition of the fact that although these studies are generally undertaken to identify the new capital projects that are required to accommodate new development, there is a benefit to the existing community. Watson & Associates Economists Ltd. PAGE F-3 Service B.T.E. Calculation Methodology Parks and Recreation Amenities: Projects that are required for new development but will also benefit new development proportionally have a B.T.E. calculated based on the existing population share of future population in alignment with the Township's prior D.C. Background Study. Trails: Trail developments have been allocated 50% to existing development in recognition of the general benefits received from existing and new development. Waste Diversion Amenities: Projects that are required for new development but will also benefit new development proportionally have a B.T.E. calculated based on the existing population share of future population in alignment with the Township's prior D.C. Background Study. Wastewater Treatment: Recognition of 10% B.T.E. to account for the replacement of existing infrastructure when oversizing for new development. Studies: The collection system review has been allocated 25% to existing development in recognition of that although these studies are generally undertaken to identify the new capital projects that are required to accommodate new development, there is a benefit to the existing community. Water Conveyance: B.T.E. shares are derived to account for replacement of existing pipes that are being upgraded, improved pressure in the system and sections of existing pipes that are being replaced at part of larger projects. Studies: The distribution system review has been allocated 25% to existing development in recognition of that although these studies are generally undertaken to identify the new capital projects that are required to accommodate new development, there is a benefit to the existing community. Watson & Associates Economists Ltd. PAGE F-4 Service B.T.E. Calculation Methodology Growth Studies (including studies within specific service areas) Future Development Charge Background Studies have been included at 100% growth-related as they are undertaken entirely to assess what the D.C. will be for future development. For general planning studies, they have been included as 50% growth related in recognition of the general benefits received from existing and new development. Watson & Associates Economists Ltd. PAGE G-1 Appendix G Proposed D.C. By-law Watson & Associates Economists Ltd. PAGE E-1 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx The Corporation of the Township of Southgate By-Law No. 2026-____ Being a By-law With Respect to Development Charges WHEREAS the Township of Southgate will experience growth through development and re-development; AND WHEREAS development and re-development requires the provision of physical and social services by the Township of Southgate; AND WHEREAS Council desires to ensure that the capital cost of meeting growth- related demands for or burden on municipal services does not place an excessive financial burden on the Township of Southgate or its existing taxpayers, while at the same time ensuring new taxpayers contribute no more than the net capital cost attributable to providing the current level of municipal services; AND WHEREAS the Development Charges Act, 1997 (the "Act") provides that the Council of a Township may by by-law impose development charges against land to pay for increased capital costs required because of increased needs for services; AND WHEREAS a development charge background study has been completed in accordance with the Act; AND WHEREAS the Council of The Corporation of the Township of Southgate has given notice of and held a public meeting in accordance with the Act and the regulations thereto; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE Township OF Southgate ENACTS AS FOLLOWS: 1. Interpretation 1.1 In this By-law the following items shall have the corresponding meanings: "accessory" means when used to describe a use, building or structure, that the use, building or structure is naturally or normally incidental, subordinate and exclusively devoted to a main use, building or structure located on the same lot therewith; Watson & Associates Economists Ltd. PAGE E-2 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx "Act" means the Development Charges Act, 1997, as amended, or any successor thereof; "Additional dwelling unit" has the same meaning as within the Township's Zoning By-law as may be updated from time to time; "agriculture uses" means a bona fide farm operation including use of land, buildings or structures for the purposes of beekeeping, dairying, fallow, field crops, fruit farming, horticulture, market gardening, pasturage, raising of livestock or any other farming use; "apartment unit" means any residential unit within a building containing more than four dwelling units where the units are connected by an interior corridor. Notwithstanding the foregoing, Stacked Townhouse units are included within apartment units for the purposes of calculating the development charge; "bedroom" means a habitable room which can be used as sleeping quarters, but does not include a bathroom, living room, dining room or kitchen; "board of education" has the same meaning as set out in the Education Act, R.S.O. 1990, Chap. E.2, as amended, or any successor thereof; "bona fide farm uses" means the proposed development that 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. Notwithstanding the foregoing, bona-fide farm uses do not include retail sales activities and/or on-farm industrial uses where rezoning or a zoning amendment is required under the Township's current zoning by-law, including but not limited to restaurants; banquet facilities; hospitality and accommodation facilities; gift shops; services related to grooming, boarding or breeding of household pets; and marijuana and alcohol processing or production facilities; "building" means a structure having a roof supported by columns or walls or directly on the foundation and used for the shelter and accommodation of persons, animals or goods and without limiting the foregoing, includes buildings as defined in the Building Code Act; Watson & Associates Economists Ltd. PAGE E-3 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx "Building Code Act" means the Building Code Act, S.O. 1992, as amended, or any successor thereof; "capital cost" means costs incurred or proposed to be incurred by the Township or a local board thereof directly or by others on behalf of and as authorized by the Township or local board, (a) to acquire land or an interest in land, including a leasehold interest, (b) to improve land, (c) to acquire, lease, construct or improve buildings and structures, (d) to acquire, construct or improve facilities including, (i) rolling stock with an estimated useful life of seven years or more, (ii) furniture and equipment other than computer equipment, (iii) material acquired for circulation, reference or information purposes by a library board as defined in the Public Libraries Act, R.S.O. 1990, Chap. P.44, as amended, or any successor thereof; (e) to undertake studies in connection with any matter under the Act and any of the matters in clauses (a) to (d) above, including the development charge background study required for the provision of services designated in this By-law within or outside the Township, including interest on borrowing for those expenditures under clauses (a) to (e) above that are growth-related; and (f) for interest on money borrowed to pay for costs described in clauses (a) to (d) above; "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, and self-storage development; "Council" means the Municipal Council of the Corporation of the Township of Southgate; "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 increases the size of, usability thereof, or change of use thereof, and includes redevelopment; Watson & Associates Economists Ltd. PAGE E-4 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx "development charge" means a charge imposed with respect to this By-law; "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 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; but does not mean or include tent, trailer, or a room or a suite of rooms in a boarding house, hotel, motel, motor home or tourist home; "duplex" means a building that is divided horizontally into two separate dwelling units, each of which has an independent entrance; "existing residential building/dwelling" means unit" means a residential building/dwelling, containing at least one dwelling unit, that existed on a parcel of land as of the October 5, 2022 and which was not exempt from the payment of development charges pursuant to Section 2(3)(b) of the Act or the first residential building/dwelling, containing at least one dwelling unit, constructed on a vacant parcel of land after the date of by-law passage, and for which development charges were paid; "farm building" means that part of a bona fide farming operation encompassing barns, silos and other ancillary development to an agricultural use, but excludes residential uses; "garden suite" means a building containing one (1) dwelling unit where the garden suite is detached from and ancillary to an existing single detached dwelling or semi-detached dwelling on the lands and such building is designed to be portable; "gross floor area" means: (a) in the case of a residential building or structure, the total area of all floors above grade of a dwelling unit measured between the outside surfaces of exterior walls or between the outside surfaces of exterior walls and the centre line of party walls dividing the dwelling unit from any other dwelling unit or other portion of a building; and (b) in the case of a non-residential building or structure, or in the case of a mixed-use building or structure in respect of the non-residential portion thereof, the total area of all building floors above or below grade measured between the outside surfaces of the exterior walls, or between the outside Watson & Associates Economists Ltd. PAGE E-5 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx surfaces of exterior walls and the centre line of party walls dividing a non- residential use and a residential use, except for: (i) a room or enclosed area within the building or structure above or below that is used exclusively for the accommodation of heating, cooling, ventilating, electrical, mechanical or telecommunications equipment that service the building; (ii) loading facilities above or below grade; and (iii) a part of the building or structure below grade that is used for the parking of motor vehicles or for storage or other accessory use; "industrial" means lands, buildings or structures used or designed or intended for use for manufacturing, processing, fabricating or assembly of raw goods, warehousing or bulk storage of goods, and includes office uses and the sale of commodities to the general public where such uses are accessory to an industrial use, but does not include the sale of commodities and the supplying of personal services or as otherwise defined in the zoning by-law. Wind turbines and solar farms are included as industrial developments; "institutional" means development of a building or structure intended for use: (a) as a long-term care home within the meaning of Subsection 2 (1) of the Long-Term Care Homes Act, 2007; (b) as a retirement home within the meaning of Subsection 2(1) of the Retirement Homes Act, 2010. (c) By any institution of the following post-secondary institutions for the objects of the institution: (i) a university in Ontario that receives direct, regular and ongoing operation funding from the Government of Ontario; (ii) a college or university federated or affiliated with a university described in subclause (i); or (iii) an Indigenous Institute prescribed for the purposes of section 6 of the Indigenous Institute Act, 2017; (d) as a memorial home, clubhouse, or athletic grounds by an Ontario branch of the Royal Canadian Legion; or (e) as a hospice to provide end of life care; Watson & Associates Economists Ltd. PAGE E-6 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx "local board" means a school board, municipal service board, transportation commission, public library board, board of health, police services board, planning 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, including school purposes, of a Township or of two or more municipalities or parts thereof; "local services" means those services, facilities or things which are under the jurisdiction of the Township of Southgate and are related to a plan of subdivision or within the area to which the plan relates in respect of the lands under Sections 41, 51 or 53 of the Planning Act, R.S.O. 1990, Chap. P.13, as amended, or any successor thereof; "mobile home" means any dwelling that is designed to be made mobile, and constructed or manufactured to provide a permanent residence for one or more persons, but does not include a travel trailer or tent trailer or trailer otherwise designed; "multiple dwellings" means all dwellings other than single detached, semi- detached and apartment unit dwellings; "non-profit housing development" means development of a building or structure intended for use as residential premises by: (a) a corporation to which the Not-for-Profit Corporations Act, 2010 applies, that is in good standing under that Act and whose primary object is to provide housing; (b) a corporation without share capital to which the Canada Not-for-profit Corporation Act applies, that is in good standing under that Act and whose primary objective is to provide housing; or (c) a non-profit housing co-operative that is in good standing under the Co- operative Corporations Act; "non-residential use" means a building or structure of any kind whatsoever used, designed or intended to be used for other than a residential use; "Official Plan" means the Official Plan adopted by the Township, as amended and approved; Watson & Associates Economists Ltd. PAGE E-7 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx "owner" means the owner of land or a person who has made application for an approval for the development of land upon which a development charge is imposed; "place of worship" means that part of a building or structure that is exempt from taxation as a place of worship under the Assessment Act, R.S.O. 1990, Chap. A.31, as amended, or any successor thereof; "rate" means the interest rate established weekly by the Bank of Canada based on Treasury Bills having a term of 91 days; "regulation" means any regulation made pursuant to the Act; "rental housing" means development of a building or structure with four or more dwelling units all of which are intended for use as rented residential premises; "residential dwelling" means a building, occupied or capable of being occupied as a home, residence or sleeping place by one or more persons, containing one or more dwelling units but not including motels, hotels, tents, truck campers, tourist trailers, mobile camper trailers, or boarding, lodging or rooming houses; "residential use" means the use of a building or structure or portion thereof for one or more dwelling units; this also includes a dwelling unit on land that is used for an agricultural use; "row 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; "semi-detached dwelling" means a dwelling unit in a residential building consisting of two dwelling units having one vertical wall or one horizontal wall, but not other parts, attached or another dwelling unit where the residential units are not connected by an interior corridor; "service" means a service designed in Schedule "A" to this By-law, and "services" shall have a corresponding meaning; "servicing agreement" means an agreement between a landowner and the Township relative to the provision of municipal services to specified land within the Township; Watson & Associates Economists Ltd. PAGE E-8 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx "single detached dwelling unit" means a residential building consisting of one dwelling unit and not attached to another structure; "solar farm" means any solar energy system comprised of one or more solar energy conversion panels and associated control or conversion electronics that converts sunlight into electricity, with a combined nameplate generating capacity greater than or equal to 500 kilowatts. A solar farm may be connected to the electricity grid to provide electricity off-site for sale to an electrical utility or other intermediary; "stacked townhouses" means a building containing at least 3 dwelling units with each dwelling unit separated horizontally and/or vertically from another dwelling unit by a common wall and each dwelling unit having a separate entrance to grade "structure" means anything constructed or erected, either permanent or temporary, the use of which requires location on the ground or attachment to something having location on the ground; "Township" means the Corporation of the Township of Southgate and the area within the geographic limits of the Township of Southgate; "wind turbine" means a part of a system that converts energy into electricity, and consists of a wind turbine, a tower and associated control or conversion electronics. A wind turbine and energy system may be connected to the electricity grid in circuits at a substation to provide electricity off-site for sale to an electrical utility or other intermediaries; and "Zoning By-Law" means the Zoning By-Law of the Township of Southgate, or any successor thereof passed pursuant to Section 34 of the Planning Act, S.O. 1998. 2. Designation of Services and Classes of Service 2.1 The categories of services and classes of service for which development charges are imposed under this By-law are as follows: (a) Services related to a Highway; (b) Fire Protection Services; Watson & Associates Economists Ltd. PAGE E-9 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx (c) Parks and Recreation Services; (d) Library Services; (e) Growth-Related Studies; (f) Land; (g) Waste Diversion Services; (h) Storm Drainage and Control Services; (i) Wastewater Services; and (j) Water Services. 3. Application of By-law Rules 3.1 Development charges shall be payable in the amounts set out in this By-law where: (a) the lands are located in the area described in Section 3.2; and (b) the development of the lands requires any of the approvals set out in subsection 3.4(a). Area to Which By-law Applies 3.2 Subject to Section 3.3, this By-law applies to all lands in the Township of Southgate whether or not the land or use thereof is exempt from taxation under s.13 of the Assessment Act. 3.3 Notwithstanding clause 3.2 above, this By-law shall not apply to lands that are owned by and used for the purposes of: (a) the Township or a local board thereof; (b) the County of Grey or any local board thereof; (c) a board of education as defined in Section 1(1) of the Education 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) Non-Profit Housing; (f) Affordable residential units required pursuant to section 34 and 16(4) of the Planning Act (Inclusionary Zoning); (g) Affordable and attainable residential units as follows: Watson & Associates Economists Ltd. PAGE E-10 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx 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; (h) Long-term care homes; (i) Non-profit Retirement Homes; (j) 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. Approvals for Development 3.4 (a) Development charges shall be imposed on all lands, buildings or structures that are developed for residential or non-residential uses if the development requires: (iv) the passing of a zoning by-law or of an amendment to a zoning by- law under Section 34 of the Planning Act; (v) the approval of a minor variance under Section 45 of the Planning Act; (vi) a conveyance of land to which a by-law passed under subsection 50(7) of the Planning Act applies; (vii) the approval of a plan of subdivision under Section 51 of the Planning Act; (viii) a consent under Section 53 of the Planning Act; (ix) the approval of a description under Section 50 of the Condominium Act, R.S.O. 1990, Chap. C.26, as amended, or any successor thereof; or (x) the issuing of a permit under the Building Code Act in relation to a building or structure. (b) No more than one development charge for each service or class of service designated in Section 2.1 shall be imposed upon any lands, buildings or structures to which this By-law applies, even though two or more of the Watson & Associates Economists Ltd. PAGE E-11 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx actions described in subsection 3.4(a) are required before the lands, buildings or structures can be developed. (c) Despite subsection 3.4(b), if two or more of the actions described in subsection 3.4(a) occur at different times, additional development charges shall be imposed if the subsequent action has the effect of increasing the need for services. Exemptions for Intensification of Existing Housing 3.5 Notwithstanding the provisions of this By-law, development charges shall not be imposed with respect to: (a) an enlargement to an existing dwelling unit; (b) 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; (c) 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; (d) 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; a. For the purposes of Subsection 3.5 (b) a residential Dwelling Unit in a Building or structure ancillary to an existing or new Single Detached Dwelling, Semi-Detached Dwelling, or Row- Watson & Associates Economists Ltd. PAGE E-12 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx Townhouse Dwelling must be an Additional Dwelling Unit as defined herein (e) 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; 3.6 Exemption for Industrial Development: (a) Notwithstanding any other provision of this By-law, no development charge is payable with respect to an enlargement of the gross floor area of an existing industrial building where the gross floor area is enlarged by 50 percent or less. (b) If the gross floor area of an existing industrial building is enlarged by greater than 50 percent, the amount of the development charge payable in respect of the enlargement is the amount of the development charge that would otherwise be payable, multiplied by the fraction determined as follows: (i) determine the amount by which the enlargement exceeds 50 percent of the gross floor area before the enlargement; (ii) divide the amount determined under subsection 3.6 (a) (ii) by the amount of the enlargement. (c) For the purpose of Section 3.6 herein, the gross floor area of an "existing industrial building" means the gross floor area that existing at the time of by-law passage. For industrial buildings constructed after by-law passage, the gross floor area of an "existing industrial building" is the gross floor area lawfully constructed at the time of building permit issuance (d) The exemption in this section shall not apply where the enlarged area is attached to the existing industrial building by means only of a tunnel, bridge, canopy, corridor, or other passage-way, or through a shared below-grade connection such as a service tunnel, foundation, footing, or a parking facility. Other Exemptions: 3.7 Notwithstanding the provision of this By-law, development charges shall not be imposed with respect to: Watson & Associates Economists Ltd. PAGE E-13 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx (a) Non-residential farm building for a bona fide farm use, with a valid Farm Business Registration Number and assessed as Farmland Realty Tax Class; (b) Places of worship, cemetery or burial ground exempt from taxation under the Assessment Act; (c) Hospitals under the Public Hospitals Act; and (d) Temporary buildings or structures (i) Prior to the issuance of a building permit for a temporary building or structure, the Township may require an owner to enter into an agreement, including the provision of security for the owner's obligation under the agreement, pursuant to section 27 of the Act providing for all or part of the development charge that would be required by Subsection 3.8, 3.9, or 3.10 if the terms of the agreement are not met and the building is not removed by the agreed upon date. The terms of such agreement shall then prevail over the provisions of this By-law. (e) Non-Profit Housing meeting the requirements of a program for such purposes as administered by any agency of the Federal or Provincial government, Grey County, or the Township. (i) Prior to the issuance of a building permit for a non-profit housing, the Township may require an owner to enter into an agreement, including the provision of security for the owner's obligation under the agreement, pursuant to section 27 of the Act providing for all or part of the development charge that would be required by Subsection 3.8, 3.9, or 3.10 if the terms of the agreement are not met. The terms of such agreement shall then prevail over the provisions of this By-law. Watson & Associates Economists Ltd. PAGE E-14 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx Amount of Charges Residential 3.8 The development charges set out in Schedule A shall be imposed on residential uses of lands, buildings or structures, including a dwelling unit accessory to a non-residential use and, in the case of a mixed-use building or structure, on the residential uses in the mixed-use building or structure, according to the type of residential unit, and calculated with respect to each of the services according to the type of residential use. Non-Residential 3.9 The development charges described in Schedule A to this By-law shall be imposed on non-residential uses of lands, buildings or structures and, in the case of a mixed-use building or structure, on the non-residential uses in the mixed-use building or structure, and calculated with respect to each of the services according to the total floor area of the non-residential use. Wind Turbines and Solar Farms 3.10 Notwithstanding s.3.8 and s.3.9, the development charges described in Schedule A to this by-law shall be imposed per wind turbine and per 500 kW of nameplate generating capacity for solar farms, and calculated at the single-detached and semi-detached dwelling rate, with respect to services related to a highway, fire protection services, and administration services. Reduction of Development Charges for Redevelopment 3.11 Despite any other provisions of this By-law, where, as a result of the redevelopment of land, a building or structure existing on the same land within 60 months (5 years) prior to the date of payment of development charges in regard to such redevelopment was or is to be demolished in whole or in part, or converted from one principal use to another principal use on the same land in order to facilitate the redevelopment, the development charges otherwise payable with respect to such redevelopment shall be reduced by the following amounts: Watson & Associates Economists Ltd. PAGE E-15 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx (a) in the case of a residential building or structure, or in the case of a mixed- use building or structure, the residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable development charge under subsection 3.8 by the number, according to type, of dwelling units that have been or will be demolished or converted to another principal use; and (b) in the case of a non-residential building or structure or, in the case of a mixed-use building or structure, the non-residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable development charges under Section 3.9, by the gross floor area that has been or will be demolished or converted to another principal use; provided that such amounts shall not exceed, in total, the amount of the development charges otherwise payable with respect to the redevelopment. Time of Payment of Development Charges 3.12 Development charges shall be calculated and payable in money or by provision of service as may be agreed upon, or by credit granted under the Act, on the date that the building permit is issued in relation to a building or structure on land to which the development charge applies. 3.13 Where development charges apply to land in relation to which a building permit is required, the building permit shall not be issued until the development charge has been paid in full. 3.14 Notwithstanding 3.12 and 3.13, 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, payable on the anniversary date each year thereafter. For clarity in interpreting this subsection, rental housing is defined in subsection 1.(29) and institutional developments are defined in subsection 1.(18); 3.15 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 3.8 and 3.9 shall be calculated on the rates set out in Schedule "B" on the date of the planning application, including Watson & Associates Economists Ltd. PAGE E-16 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx interest. Where both planning applications apply Development Charges under Section 2, shall be calculated on the rates, including interest, set out in Schedule "B" on the date of the later planning application, including interest. Notwithstanding the foregoing, the total charge payable, including interest, calculated under this subsection, shall not be greater than the charge that would be payable at building permit issuance if this subsection did not apply; 3.16 Interest for the purposes of Subsection 11.(3) 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 3.17 This shall not be deemed to limit the authority of the Council to enter into an agreement for payment of the development charges before or after the date of building permit issuance subject to Section 27 of the Development Charges Act, 1997. 4. Payment of Services 4.1 Despite the payment required under Sections 3.8, 3.9 and 3.10, Council may, by agreement, give a credit towards a development charge in exchange for work that relates to a service to which a development charge relates under this By-law. Watson & Associates Economists Ltd. PAGE E-17 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx 5. Indexing 5.1 Development charges imposed pursuant to this By-law shall be adjusted annually on January 1, without amendment to this By-law, in accordance with the third quarter of the prescribed index in the Act. 6. Front-end Financing 6.1 The Township may enter into front-end agreements with owners in accordance with the provisions of the Act. 7. Accountability 7.1 All monies paid pursuant to this By-law shall be maintained separately from all other revenues or receipts of the Township. The Treasurer of the Township shall establish separate reserve funds, pursuant to the categories of services/classes of service designated in Section 2.1. 7.2 The Treasurer of the Township shall provide to the Council an annual financial statement related to this By-law containing the information set out in Section 12 of O. Reg. 82/98. 7.3 The Township shall pay interest on a refund under subsections 18(3) and 25(2) or Section 36 of the Act at a rate equal to the Bank of Canada rate on the date this By-law comes into force, updated on the first business day of every January, April, July and October thereafter. 7.4 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. 7.5 Where any unpaid development charges are collected as taxes under subsection 7.4, the monies so collected shall be credited to the development charge reserve funds referred to in subsection 7.1. 8. Schedules 8.1 The following schedules shall form part of this By-law: Schedule A - Schedule of Development Charges. Watson & Associates Economists Ltd. PAGE E-18 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx 9. Conflicts 9.1 Where the Township and an owner or former owner have entered into an agreement with respect to land within the area to which this By-law applies, and a conflict exists between the provisions of this By-law and such agreement, the provisions of the agreement shall prevail to the extent that there is a conflict. 9.2 Notwithstanding Section 9.1, where a development which is the subject of an agreement to which Section 9.1 applies, is subsequently the subject of one or more of the actions described in subsection 3.4(a), an additional development charge in respect of the development permitted by the action shall be calculated, payable and collected in accordance with the provisions of this By-law if the development has the effect of increasing the need for services, unless such agreement provides otherwise. 10. Severability 10.1 If, for any reason, any provision of this By-law is held to be invalid, it is hereby declared to be the intention of Council that all the remainder of this By-law shall continue in full force and effect until repealed, re-enacted, amended or modified. 11. Date By-law In Force 11.1 This By-law shall come into effect on ______ __, 202_. 12. Date By-law Expires 12.1 This by-law will expire ten years after the effective date of this by-law unless it is repealed by Council at an earlier date. 13. Existing By-law Repealed 13.1 By-law No. 2022-154 is hereby repealed upon the enforcement of this By-law. PASSED THIS __ day of _______ 202_ Mayor Watson & Associates Economists Ltd. PAGE E-19 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx Township Clerk Watson & Associates Economists Ltd. PAGE E-20 https://watsonecon.sharepoint.com/sites/Southgate-Southgate2024DC/Shared Documents/Report/Draft By-Law - FINAL.docx Schedule "A" To By-law 2026-____ Schedule of Development Charges Single and Semi- Detached Dwelling Other Multiples Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom (per sq.ft. of Gross Floor Area) Wind Turbines Solar Farm (per 500 kW) Municipal Wide Services/Class of Service: Services Related to a Highway 3,650 2,092 2,011 1,357 1.20 3,650 3,650 Fire Protection Services 1,655 949 912 615 0.54 1,655 1,655 Parks and Recreation Services 4,905 2,811 2,703 1,823 0.28 - - Library Services 1,272 729 701 473 0.07 - - Waste Diversion 51 29 28 19 0.02 - - Growth Studies 94 54 52 35 0.10 94 94 Land Acquisition 114 65 63 42 0.04 114 114 Total Municipal Wide Services/Class of Services 11,741 6,729 6,470 4,364 2.25 5,513 5,513 Urban Services Stormwater Drainage and Control Services 722 414 398 268 0.29 - - Wastewater Services - - - - - - - Water Services 7,490 4,293 4,127 2,784 2.96 - - Total Urban Services 8,212 4,707 4,525 3,052 3.25 - - GRAND TOTAL RURAL AREA 11,741 6,729 6,470 4,364 2.25 5,513 5,513 GRAND TOTAL URBAN AREA 19,953 11,436 10,995 7,416 5.50 5,513 5,513 RESIDENTIAL Service/Class of Service NON-RESIDENTIAL