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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
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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.
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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.
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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
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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;
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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.
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PAGE 3-3
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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
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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
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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
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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.
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Figure 4-1
The Process of Calculating a Development Charge under the Act that must be followed
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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.
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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.
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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.
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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
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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.
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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;
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- 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).
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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.
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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
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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.
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Chapter 5
D.C.-Eligible Cost Analysis by
Service
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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.
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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
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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.
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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.
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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,
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- 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.
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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
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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:
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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
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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
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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
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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
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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.
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Appendix E
Changes to the D.C.A.
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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.
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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.
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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.
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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.
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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:
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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
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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
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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).
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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
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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.
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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.
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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.
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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;
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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;
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- 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.
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Appendix F
Benefit to Existing
Methodology
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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.
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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.
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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.
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Appendix G
Proposed D.C. By-law
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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;
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"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;
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"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;
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"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
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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;
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"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;
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"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;
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"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;
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(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:
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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
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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-
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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:
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(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.
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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:
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(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
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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.
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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.
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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
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Township Clerk
Watson & Associates Economists Ltd.
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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