Development Levy Bylaw No. 1/2014

Yorkton, Saskatchewan · adopted 2014-02-10

This is the exact embedded text of the captured official document. Snapshot 5da280090849 · verified 2026-08-23 · original document · archived snapshot · unofficial consolidation, the official version is held by the municipal clerk.

CITY OF YORKTON BYLAW NO. 1/2014 Disclaimer: This information has been provided solely for research convenience. Official bylaws are available from the Office of the City Clerk and must be consulted for purposes of interpretation and application of the law. Bylaw No. 1/2014 - Establishment of a development charge levy for the development or redevelopment of lands within the City of Yorkton Page 1 of 7 CITY OF YORKTON SASKATCHEWAN BYLAW NO. 1/2014 A BYLAW OF THE CITY OF YORKTON IN THE PROVINCE OF SASKATCHEWAN TO ESTABLISH A DEVELOPMENT LEVY FOR LANDS THAT ARE TO BE DEVELOPED OR REDEVELOPED WITHIN THE CITY OF YORKTON. WHEREAS, Section 169 of The Planning and Development Act, 2007, Chapter P-13.2 (the "Act") provides that the Council of the municipality may pass a bylaw establishing a Development Levy; WHEREAS, certain lands within the City of Yorkton are proposed for future development; WHEREAS, Council for the City of Yorkton gave notice by advertising in a local weekly newspaper on January 15, 22 and 29, 2014, and February 5, 2014 and a Public Hearing was held on February 10, 2014, in regards to the proposed Bylaw, in accordance with the public participation requirements contained in Section 207 of the Act; WHEREAS, the Council for the City of Yorkton deems it desirable to establish a Development Levy for the purposes of recovering all or a part of the capital costs of providing services and facilities associated with a proposed development, directly or indirectly, in regards to: sewage, water, and drainage works; roadways and related infrastructure; parks; and recreational facilities; WHEREAS, the Council has received a study or studies, regarding the estimated capital costs of providing municipal servicing and recreational requirements, which sets out a fair and equitable calculation of the development levies in accordance with the Act, WHEREAS, the Council has considered the future land use patterns and development and phasing of public works to help determine a fair and equitable calculation of the development levies in accordance with the Act; and WHEREAS, the Council wishes to enact a bylaw: to impose and provide for the payment of development levies; to authorize agreements to be entered into in respect of payment of development levies; to set out the conditions upon which the levy will be applied to specify land uses, classes of development, zoning districts or defined areas; and to indicate how the amount of the levy was determined. NOW THEREFORE, the Council of the City of Yorkton, duly assembled, enacts as follows: 1. SHORT TITLE This bylaw may be cited as the "Development Levy Bylaw." COPY Bylaw No. 1/2014 - Establishment of a development charge levy for the development or redevelopment of lands within the City of Yorkton Page 2 of 7 2. PURPOSE AND INTENT This bylaw is intended to: a) Impose and provide for the payment of development levies; b) Provide consistency between off-site development levies and subdivision servicing fees, where appropriate; c) Authorize agreements to be entered into in respect of payment of development levies; d) Set out the conditions upon which the levy will be applied to specify land uses, classes of development, zoning districts or defined areas; and e) Indicate how the amount of the levy was determined. 3. DEFINITIONS In this bylaw: a) "Act" shall mean The Planning and Development Act, 2007, Chapter P-13.2 and any amendments thereto; b) "Capital Costs" means the municipality's estimated cost of providing, altering, expanding or upgrading the following services and facilities associated, directly or indirectly, with a Proposed Development: i) Sewage, water or drainage works; ii) Roadways and related infrastructure; iii) Parks; iv) Recreational facilities. c) "Development" means the carrying out of any building, engineering, mining or other operations in, on or over land or the making of any material change in the use or intensity of the use of any building or land; d) "Development Charge" means servicing fees and/or development levies as defined within the Act. e) "Development Lands" means those lands (or any part thereof) within the City of Yorkton, where no previous servicing agreement has been entered into for the specific proposed development and, in the opinion of Council, the City of Yorkton will incur additional capital costs as a result of the proposed development; f) "Development Levy" means the levy imposed and created by this bylaw pursuant to the Act; g) "Development Levy Agreement" has the meaning ascribed to this term by the Act within Section 171. h) "Director of Planning & Engineering" shall mean a person appointed by the Municipality as the Director of Planning & Engineering; i) "Municipality" means the City of Yorkton; j) "Proposed Development" means a permitted or discretionary use within the City of Yorkton Zoning Bylaw, for which a person or corporation has made an application for a development permit; k) "Servicing Agreement" has the meaning ascribed to this term by the Act within Section 172; COPY Bylaw No. 1/2014 - Establishment of a development charge levy for the development or redevelopment of lands within the City of Yorkton Page 3 of 7 4. ADMINISTRATION AND ENFORCEMENT Council hereby delegates to the Director of Planning & Engineering, or designate, the duty and authority to enforce and administer this bylaw, including administering the Development Levy, Development Levy Agreements and Servicing Agreements. Only Council has the Authority to enter into a Development Levy Agreement. 5. APPLICATION a) This bylaw applies to Development Lands that benefit or will benefit from municipal services installed or to be installed by or on behalf of the Municipality. The Development Levy imposed by this bylaw is intended to recover all or a part of the Capital Costs incurred by the Municipality as a result of a Proposed Development, as illustrated and set out in Schedule "B" attached to and forming part of this bylaw. b) Pursuant to Section 169(3), the Development Levy will only be applied if: the specific proposed development was not previously subject to a servicing agreement; and, in the opinion of Council, additional capital costs will be incurred by the Municipality. c) A Development Levy will be assessed on all Developable Lands within the Municipality except land designated as: i) Environmental Reserve; ii) Municipal Reserve; and iii) Arterial Road Right-of-Way. 6. IMPOSITION OF LEVY a) There is hereby imposed on the Development Lands a Development Levy in the amounts set out in Schedule "A" attached to and forming part of this bylaw. Schedule "A" shall be updated to reflect changes in infrastructure costs, as required. b) The amount of the Development Levy that is imposed shall be based upon the levy in place at the time when: i) The Development Permit application is submitted to the Municipality and is deemed complete; or ii) The Subdivision Application is submitted to the City in the case where no development permit is required. c) Any revisions to Schedule "A" shall apply only to development permit applications accepted by the Municipality after the date the revision is adopted. d) The Municipality may reduce the Development Levy where full coverage of services cannot be provided due to site limitations. Each of the capital works described in Section 9 herein may be reduced or waived entirely according to the relative availability (capacity) of the service items. e) The Municipality may from time to time, by resolution, exempt or defer or partially exempt or defer the imposition of a Development Levy where the Development Lands are owned in whole or in part by a public body or bodies and where the Development of the lands will be used in whole or in part for public service purposes. COPY Bylaw No. 1/2014 - Establishment of a development charge levy for the development or redevelopment of lands within the City of Yorkton Page 4 of 7 7. AUTHORITY TO ENTER INTO AGREEMENT a) Any Development Levy Agreement and the obligation to pay the applicable Development Levy shall be binding on successors in title to the original owner or owners, regardless of whether a caveat in respect of the Development Levy Agreement is registered by the Municipality against the Development Lands. b) Nothing in this bylaw prevents the Municipality from imposing additional or new development levies on any portion of the Development Lands where the Municipality has not previously collected the Development Levy or entered into a Development Levy Agreement or Servicing Agreement. 8. PAYMENT a) The Development Levy provided in this bylaw shall be paid in the following manner: i) Fifty Percent (50%) at the time a Servicing Agreement is signed by the developer for subdivision of land; ii) The remaining portion on a pro-rated basis as each lot is sold by the developer and title transferred to a third party; iii) One Hundred Percent (100%) prior to issuance of a Development Permit where land was previously subdivided before the adoption of this bylaw but no Development Levy imposed by the City; or iv) In a fashion and timeline deemed appropriate by the Municipality within a Development Levy Agreement as outlined by the Director of Finance where payment is secured by letters of credit for all outstanding amounts prepared pursuant to Section 171 of the Act. b) In the event that any Development Levy payment imposed by this bylaw payable under a Development Levy Agreement is not paid at the time or times specified within the Agreement and without limiting the remedies of the Municipality, the Municipality may issue a stop order prohibiting further development on the Development Lands. 9. PURPOSE AND USE OF THE LEVY The Development Levy is intended to reimburse the Municipality for the capital costs associated with the construction, altering, expanding or upgrading of the following: a) Sewage, water or drainage works; b) Roadways and related infrastructure; c) Parks; and/or d) Recreational facilities associated directly or indirectly with the proposed development. The Development Levy may be utilized to pay a debt incurred by the municipality as a result of expenditure listed above or to reimburse an owner described in clause 173(d) of the Act. COPY Bylaw No. 1/2014 - Establishment of a development charge levy for the development or redevelopment of lands within the City of Yorkton Page 5 of 7 10. CALCULATION OF LEVY The Development Levy adopted in this bylaw was determined on the basis set out in Schedule "B" annexed hereto and forming part of this bylaw. 11. SEVERABILITY In the event that any provision of this bylaw is found to be null or void or contrary to law by any court of competent jurisdiction, then such provision shall be severed from this bylaw and the remainder of this bylaw shall continue to be of full force and effect. 12. THAT any previous Development Levy Bylaw or policy and all amendments thereto, are hereby repealed. 13. ENACTMENT This bylaw shall take effect and come into force upon the date of third and final reading. MAYOR CITY CLERK Read a first time this 13th day of January, A.D., 2014. Read a second time this 10th day of February, A.D., 2014. Read a third time this 10th day of February, A.D., 2014. COPY Bylaw No. 1/2014 - Establishment of a development charge levy for the development or redevelopment of lands within the City of Yorkton Page 6 of 7 SCHEDULE A to Bylaw No. 1/2014 Development Charge Rate Table (Land Use Specific) Land Use Type Roadway and Related Infrastructure ($/hectare) Water System ($/hectare) Sanitary System ($/hectare) Storm System ($/hectare) Recreation ($/hectare) Total Development Charge ($/hectare) Residential 14,414 22,112 17,218 4,793 29,850 88,390 Commercial 106,792 26,535 29,517 8,628 - 171,474 Industrial 107,355 26,535 29,517 6,710 - 170,119 COPY Bylaw No. 1/2014 - Establishment of a development charge levy for the development or redevelopment of lands within the City of Yorkton Page 7 of 7 SCHEDULE B to Bylaw No. 1/2014 Development Charge Bylaw Background Report COPY REPORT City of Yorkton Development Charge Background Report December 2013 COPY CONFIDENTIALITY AND © COPYRIGHT This document is for the sole use of the addressee and Associated Engineering (Sask.) Ltd. The document contains proprietary and confidential information that shall not be reproduced in any manner or disclosed to or discussed with any other parties without the express written permission of Associated Engineering (Sask.) Ltd. Information in this document is to be considered the intellectual property of Associated Engineering (Sask.) Ltd. in accordance with Canadian copyright law. This report was prepared by Associated Engineering (Sask.) Ltd. for the account of City of Yorkton. The material in it reflects Associated Engineering (Sask.) Ltd.'s best judgement, in the light of the information available to it, at the time of preparation. Any use which a third party makes of this report, or any reliance on or decisions to be made based on it, are the responsibility of such third parties. Associated Engineering (Sask.) Ltd. accepts no responsibility for damages, if any, suffered by any third party as a result of decisions made or actions based on this report. COPY REPORT i Executive Summary Yorkton has experienced a significant spike in its growth over the past five year period resulting from a strong commodity market for agricultural, mineral and energy resources and products. Forecasts for the Saskatchewan economy continue to be positive and Yorkton is well positioned both geographically and within the international market expansion sectors to continue to attract new investment in the City. Unfortunately, infrastructure often lags behind economic growth creating local inefficiencies and unnecessary hindrances counteracting the benefits of this growth by discouraging private investment and potentially increasing public financial obligations due to a lack of community preparedness. The City currently levies $39,680.00 per hectare of net development area to expand infrastructure required to support community growth. The methodology presented in this report breaks down the process into logical steps intended to equip the City with the necessary tools to update and maintain development charges which equitably assign a proportionate cost of community growth to developers. Development charges include levies associated with the development or intensification of a use on an existing parcel or fees charged to the developer by the municipality within a servicing agreement in response to a proposed subdivision of land. The City requires a bylaw to assess development charges within the community. The Planning and Development Act, 2007 (the Act) requires a municipality to establish these charges based on a study or studies of the costs of municipal servicing and recreational requirements as they relate to the established direction for future land use and development patterns and the phasing of public works. As an approving authority, the Yorkton City Council does not require ministerial approval to implement a development charge. The assumptions and recommendations contained within this report are based upon the City's projected growth as identified in an independent population growth study and the City's projected growth plan as identified in its new Official Community Plan (OCP). The Future Growth Needs Analysis Report prepared in support of the new OCP targets population growth in Yorkton between 2.21% and 2.75% annually over the next twenty five year period. Correspondingly, the City's Future Land Use Maps identifies the spatial distribution of this anticipated growth. It is projected that over the next twenty five years, an additional 335 hectares of land will need to be serviced to accommodate future residential growth, an additional 253 hectares will be needed for commercial development and an estimated 106 additional hectares of serviced land will be needed to host the expansion of industrial development within the community. COPY City of Yorkton Development Charge ii p:\20104775\00_coy_offsite_lev_b\engineering\03.00_conceptual_feasibility_design\rpt_coy_development_levy_background_20131209.docx The capital infrastructure associated within this forecasted growth is summarized as follows: Table ES -1-1 Capital Project Forecast Capital Infrastructure Total Capital Cost ($) Total Recoverable from Development Charges ($) Municipal Responsibility ($) Road and Related Infrastructure 47,982,500 43,227,000 4,755,500 Water System 18,950,000 16,934,000 2,016,000 Sanitary System 16,365,000 16,365,000 Nil Storm System 36,000,000 4,500,000 31,500,000 Recreation 10,000,000 10,000,000 Nil Total 129,297,500 91,026,000 38,271,500 There are many ways in which communities may calculate and apply development charges. The preferred method for any community generally depends upon the community's administrative capacity to update and implement the charge and the founding principles used in its creation. There are two methods widely employed within Saskatchewan communities which include Land Use Specific Charges and Uniform Development Charges. This report provides calculations using both methods as a means of providing a basis for comparison. Land Use Specific Charge reflects the variable impact on, and demand for, infrastructure by the three main land uses present within the City. Although this method adds complexity to the calculation and the administration and maintenance of the development charge, it is more defendable within the development community since the charge applied to each type of land use is tailored to its perceived and differential benefit. Many smaller communities utilize a Uniform Development Charge which distributes a community's growth related costs equally regardless of the type of land use. Uniform charges are generally easier to administer and maintain as the process is consistent with uniform tax and utility rates regularly assessed by the community; but tend to be more contentious within the development community as they are not seen to accurately reflect a specific industry's impact on municipal infrastructure. The development charge calculations in this report are represented on a cost per hectare basis. For the purpose of calculating residential development equivalencies, a medium average density was applied. The following tables summarize the proposed development charge rates using the two methods described above. Details of the calculations are represented in Section 2 of the report. COPY Executive Summary iii Table ES -1-2 Land Use Specific Development Charge Summary Land Use Type Roadway and Related Infrastructure ($/hectare) Water System ($/hectare) Sanitary System ($/hectare) Storm System ($/hectare) Recreation ($/hectare) Total Development Charge ($/hectare) Residential 14,414 22,112 17,218 4,793 29,850 88,390 Commercial 106,792 26,535 29,517 8,628 - 171,474 Industrial 107,355 26,535 29,517 6,710 - 170,119 Table ES -1-3 Uniform Development Charge Summary Capital Infrastructure Total Capital Cost ($) Total Recoverable from Development Charges ($) Municipal Responsibility ($) Uniform Development Charge ($/hectare) Road and Related Infrastructure 47,982,500 43,227,000 4,755,500 62,287 Water System 18,950,000 16,934,000 2,016,000 24,401 Sanitary System 16,365,000 16,365,000 Nil 23,581 Storm System 36,000,000 4,500,000 31,500,000 6,484 Recreation 10,000,000 10,000,000 0.00 14,409 Total 129,297,500 91,026,000 38,271,500 131,161 Projected Growth Area (ha) 694 Based upon the City's current flat rate charge of $39,680.00 per hectare, the development charge identified in both of the tables above represents a significant increase which can either hinder or incent development in a community. The City's capital project forecast identifies several key sanitary system projects which are scheduled to be initiated in the next five years to which an immediate funding source is needed. Other capital projects are scheduled within the longer term, providing more time to acquire the necessary financial resources in advance of construction. COPY City of Yorkton Development Charge iv p:\20104775\00_coy_offsite_lev_b\engineering\03.00_conceptual_feasibility_design\rpt_coy_development_levy_background_20131209.docx Development Charge Calculation Options The following options regarding the calculation of the development charge are presented for the City's consideration: Option 1: The City continues to utilize a uniform development charge rate re-valued at $131,161 per hectare to be applied equally to all new developments and subdivisions regardless of the anticipated land uses being hosted within this new development or subdivision. Option 2: The City transitions to the following land use specific charges to recognize the variable impact on and benefit derived by each land use classification on capital infrastructure and facilities: Residential $ 88,390 Commercial $ 171,474 Industrial $ 170,119 The land use specific charges are based upon industry standard measurements of equivalency used to measure the relative impact of different forms of development on municipal infrastructure. The residential charge is significantly lower than the commercial and industrial charges due to the application of lower equivalency factors per hectare including forecasted vehicle trips, water consumption and waste water production reflecting the lower overall impact of residential development on municipal facilities and systems. Development Charge Implementation Options The following options concerning the implementation of the development charge are presented for the City's consideration: Option 1: The new development charge rate is applied at its full value from the date of bylaw approval. The City prefers that the 50% of the calculated development charges become due upon execution of the servicing or development agreement, with the remaining 50% of the charge to be paid incrementally by the developer as serviced properties are sold, prior to site development. Option 2: The City considers a multi-year phased implementation of the development charge rate to meet short term municipal capital funding requirements while providing the development community with appropriate advance notice to prevent a significant decrease in private investment within the City. The time period and phased amount are both discretionary decisions and should be established based upon consideration of the long term interests of the City and the anticipated short term impacts of an expanded development charge on the demand for development within the community. A similar implementation strategy would apply as identified in Option 1. RECOMMENDATIONS 1. The City prepares a detailed financial plan to forecast and reconcile any divergences between the timing of capital projects and the development charge accounts. COPY Executive Summary v 2. The City reviews and updates the capital project list and the development charge calculations every five years to parallel the City's capital budgeting cycle or where more accurate project costs are established for existing projects. 3. The City considers the adoption of a policy which would require a developer who is proposing development in advance of a budgeted capital infrastructure project to take sole responsibility for funding the construction of the offsite capital infrastructure necessary to support the premature development. This front end investment by the developer would then be repaid by the City at the time when the infrastructure was originally budgeted to be constructed within the capital plan. COPY City of Yorkton Development Charge vi p:\20104775\00_coy_offsite_lev_b\engineering\03.00_conceptual_feasibility_design\rpt_coy_development_levy_background_20131209.docx Table of Contents SECTION PAGE NO. Executive Summary i Development Charge Calculation Options iv Development Charge Implementation Options iv Recommendations iv Table of Contents vi List of Tables vii 1 Introduction 1-1 1.1 Community Context 1-1 1.2 Study Scope 1-1 1.3 Development Charges Defined 1-2 2 Development Charge Calculation 2-1 2.1 Establishing a Planning Horizon for Community Growth 2-1 2.2 Population Growth Estimates and Spatial Distribution of Growth Areas 2-1 2.3 Capital Project Forecasting 2-2 2.4 Land Use Specific Development Charge Calculations 2-3 2.5 Summary of land Use Differentiated Development Charges 2-9 3 Development Charge Implementation 3-1 3.1 Land Use Specific Versus Uniform Development Charges 3-1 3.2 Development Charge Adjustments 3-2 3.3 Development Charge Assessment 3-2 3.4 Development Charge Credits and Exemptions 3-3 3.5 Municipal Financing, Budgeting and Inflation 3-3 3.6 Development Charge Phasing 3-4 Appendix A - The City of Yorkton Future Growth Needs Analysis 1 Appendix B - City of Yorkton Future Land Use Concept Map 1 Appendix C - Capital Project Worksheets 1 Appendix D - Provincial Development Charge Survey 1 COPY List of Tables vii List of Tables PAGE NO. Table ES -1-1 Capital Project Forecast ii Table ES -1-2 Land Use Specific Development Charge Summary iii Table ES -1-3 Uniform Development Charge Summary iii Table 2-1 Forecasted Capital Infrastructure Projects 2-2 Table 2-2 Equivalency Criteria 2-3 Table 2-3 Road and Related Infrastructure Development Charge Calculations 2-4 Table 2-4 Water System Development Charge Calculations 2-5 Table 2-5 Sanitary System Development Charge Calculations 2-6 Table 2-6 Storm Sewer System Development Charge Calculations 2-7 Table 2-7 Recreation Development Charge Calculations 2-8 Table 2-8 Summary of Land Use Differentiated Charge Calculations 2-9 Table 3-1 Uniform Development Charge 3-1 Table 3-2 Capital Project Forecast 3-4 COPY COPY REPORT 1-1 1 Introduction 1.1 COMMUNITY CONTEXT The City of Yorkton is a major regional service centre for the east-central part of the province. Yorkton has experienced a significant spike in its growth over the past five year period resulting from a strong commodity market for agricultural, mineral and energy resources and products. Forecasts for the Saskatchewan economy continue to be positive and Yorkton is well positioned both geographically and within the international market expansion sectors to continue to attract new investment in the City. Unfortunately, infrastructure often lags behind economic growth creating local inefficiencies and unnecessary hindrances counteracting the benefits of this growth by discouraging private investment and potentially increasing public financial obligations due to a lack of community preparedness. It is intended that a new development charge be defined to replace the current Off-Site Services Reserve Policy with a desire to strengthen the connection between capital projects and the offsite charges. The current policy, adopted in 2003, levies $39,680 per hectare of net development area to expand infrastructure required due to growth. Development charges and the means by which they are employed in other cities in the province vary significantly from community to community. A table illustrating some of the current rates in these other communities is appended to this document as Appendix "D". Preparing an updated development charge which is defendable and reflects accurate capital cost projections is one step in ensuring that the City is appropriately prepared to respond to this economic prosperity in an efficient and fiscally responsible manner. 1.2 STUDY SCOPE The City requires a bylaw to assess development charges within the community. The Planning and Development Act, 2007 (the Act) requires a municipality to establish these charges based on a study or studies of the costs of municipal servicing and recreational requirements as they relate to the established direction for future land use and development patterns and the phasing of public works. This study is intended to establish a methodology to be used by the City to calculate and assess a development charge for new developments and subdivisions within Yorkton. The study involves a review of the City's current offsite levy and the forecasted capital infrastructure projects required to support the City's projected growth to determine if the current levy is sustainable. The background study provides policy recommendations based upon industry best practice surveys and engineering analysis determining the appropriate values for sewer, water and drainage works, roadways and related infrastructure, parks and recreational facilities to inform the preparation of a bylaw for approval by the municipal council. COPY City of Yorkton Development Charge 1-2 p:\20104775\00_coy_offsite_lev_b\engineering\03.00_conceptual_feasibility_design\rpt_coy_development_levy_background_20131209.docx 1.3 DEVELOPMENT CHARGES DEFINED Development charges as referred to in this document refer to servicing fees and development levies as defined within the Act. Sections 169 and 172 of the Act authorizes Council to impose a development charge covering all or a part of the capital costs of providing, altering, expanding or upgrading:  sewage, water and drainage works  roadways and related infrastructure  parks  recreational facilities Often infrastructure provides a benefit to more than one development and, consequently, the cost of developing the infrastructure should be shared by all benefiting developments. The Act distinguishes between infill development which involves the intensification of land use on an existing subdivided property where the intensification is expected to trigger additional capital costs and Greenfield subdivision which represents the subdivision and extension of new services to previously undeveloped lands by prescribing two different but related recovery mechanisms. Development levies are typically applied to infill development whereas servicing fees are generally employed in response to new property subdivisions. COPY REPORT 2-1 2 Development Charge Calculation The preparation of a development charge is a multi-disciplinary task involving not only land use planning and engineering but also incorporates economic analysis. The following summary steps are used in calculating a development charge. 2.1 ESTABLISHING A PLANNING HORIZON FOR COMMUNITY GROWTH The planning horizon represents the time period in which the forecasted growth is to occur. This time period will impact not only population and employment growth projections but will also contribute to determining the amount of serviced land which will be required and subject to the charge. The time period chosen must represent a short enough horizon to be confident that population and other growth assumptions are accurate while also providing sufficient time for the City to employ the appropriate forethought and implement the directions provided in the Official Community Plan (OCP) to proactively anticipate and respond to this growth. The risk in not looking far enough ahead in the future is that Yorkton will not be able to respond in a timely manner to economic expansion and development pressure arising from rapid economic growth in the region and the province as a whole. The OCP is the principal document which forecasts both the planned rate of growth and the geographical application of this growth and these are both fundamental components of this charge. The proposed OCP provides for a twenty five year planning horizon. Given the strategic direction provided by this document, it would make sense for the same time period to be applied to the development charge calculation as well. 2.2 POPULATION GROWTH ESTIMATES AND SPATIAL DISTRIBUTION OF GROWTH AREAS For the purpose of this document, two forms of growth forecasting are employed reflecting the full spectrum of future land use demands. a. Population growth forecasts are necessary to predict the future demand for residential land and to determine the required supply of serviced land needed to respond to this demand. b. Employment growth forecasts provide an estimate of the number of new business opportunities expected within the planning horizon, enabling an estimation of the land base necessary to respond to this forecasted demand. In both cases there needs to be community validation for both of these parameters as they are essential for calculating future land requirements and ultimately the development charge. Crosby Hanna and Associates has recently prepared a Future Growth Needs Analysis Report as background for a new OCP. A copy of this report is reproduced and attached to this report as Appendix "A". COPY City of Yorkton Development Charge 2-2 p:\20104775\00_coy_offsite_lev_b\engineering\03.00_conceptual_feasibility_design\rpt_coy_development_levy_background_20131209.docx This study acknowledges the positive impact of continued and growing international immigration to the City combined with the spinoff effect from planned expansions in the local energy and mineral sector. The study targets population growth in Yorkton between 2.21% and 2.75% annually over the next twenty five year period. According to the OCP, it is projected that over the next twenty five years, an additional 335 hectares of land will need to be serviced to accommodate future residential growth, an additional 253 hectares will be needed for commercial development and an estimated 106 additional hectares of serviced land will be needed to host the expansion of industrial development within the community. The City's projected future growth areas are attached to this report as Appendix "B". 2.3 CAPITAL PROJECT FORECASTING Development charges represent the proportionate allocation of the cumulative costs of extending sanitary sewer, water, storm sewer, road and recreational services to growth areas. Growth and development in turn is classified on the City's Future Land Use Map as comprising residential, industrial and commercial land uses. The following table summarizes the estimated gross capital costs associated with extending services to the projected growth areas over the next twenty five year period based upon collaborations with the City of Yorkton staff and detailed in Appendix "C". Through consultations with city staff, a percentage of the estimated capital expenditures associated with each infrastructure project were allocated to the development charge based upon the anticipated benefit provided by the capital improvements to both existing and future development. The portion of capital expenditure assigned as municipal responsibility is expected to be recovered through a combination of utility rates and property taxes. Table 2-1 Forecasted Capital Infrastructure Projects Capital Infrastructure Total Capital Cost ($) Total Recoverable from Development Charges ($) Municipal Responsibility ($) Road and Related Infrastructure 47,982,500 43,227,000 4,755,500 Water System 18,950,000 16,934,000 2,016,000 Sanitary System 16,365,000 16,365,000 Nil Storm System 36,000,000 4,500,000 31,500,000 Recreation 10,000,000 10,000,000 Nil Total 129,297,500 91,026,000 38,271,500 COPY 2 - Development Charge Calculation 2-3 2.4 LAND USE SPECIFIC DEVELOPMENT CHARGE CALCULATIONS Each of the land use classifications described in this report (residential, commercial and industrial) place different demands and has a variable impact on infrastructure. In recognition of the City's commitment to an equitable allocation of the capital infrastructure costs within the development charge, it is necessary to establish a basis for comparing the varied impact and benefit for each land use classification. The following criteria are generally used to reflect this varied impact as it applied to the calculation of a development charge: Table 2-2 Equivalency Criteria Capital Infrastructure Criteria Road and Related Infrastructure Average vehicle trips generated Water System Average water usage Sanitary System Average waste water production Storm System Site compaction and runoff coefficients Recreation Facilities New residential area 2.4.1 Road and Related Infrastructure Data from the Institute of Transportation Engineers "Trip Generation Manual" was used to estimate the number of daily one directional vehicle trips associated with each land use classification. This data, which is commonly used in transportation modelling, estimates the following number of daily trips per hectare for each classification as:  Residential 11.52 trips/ha  Commercial 85.35 trips/ha  Industrial 85.80 trips/ha Based upon the future growth areas defined in the OCP, the following calculations are used to define the development charges associated with capital roadway expenditures. According to the table below, a total of 34,547.55 trip ends are expected within the new development areas. Based upon an estimated total capital expenditure of $43,227,000 for forecasted roadway infrastructure allocated to new development identified in Table 2-3, the estimated capital cost per vehicle trip is $1,251.23. COPY City of Yorkton Development Charge 2-4 p:\20104775\00_coy_offsite_lev_b\engineering\03.00_conceptual_feasibility_design\rpt_coy_development_levy_background_20131209.docx Table 2-3 Road and Related Infrastructure Development Charge Calculations Land Use Type Projected Growth Area1 (ha) (A) Vehicle Trip Ends2 per Hectare (B) Total Equivalent Trip Ends (C) = A x B Development Charge per gross hectare ($) (D) = E x B Residential 335 11.52 3,859.20 14,414 Commercial 253 85.35 21,593.55 106,793 Industrial 106 85.80 9,094.80 107,356 Totals 694 34,547.55 Total Recoverable from Development Charge3 $43,227,000 Capital Cost per Vehicle Trip End (E) $ 1,251.234 2.4.2 Water System Average water consumption was used for the purposes of defining an equivalency between the three classes of land use. It is generally accepted that each land use class has differing rates of water consumption and as such each land use class will have a varied impact on potable water infrastructure. Local engineering studies indicate that typical residential water consumption in Yorkton equates to approximately 500 litres per person per day with non-residential uses consuming approximately 22,500 litres per hectare. 1 The anticipated serviced land required for each land use class to meet future development needs based upon the Crosby Hanna & Associates Future Growth Needs Analysis. 2 A Vehicle Trip End is defined within the Transportation Engineer's "Trip Generation Manual" as a single direction vehicle movement. 3 See Table 2-1. 4 This value is calculated by dividing the total capital expenditure by the total number of vehicle trip ends. COPY 2 - Development Charge Calculation 2-5 Table 2-4 Water System Development Charge Calculations Land Use Type Projected Growth Area5 (ha) (A) Equivalent Consumption per hectare6 (B) Total Consumption Units (L/day) (C) = A x B Development Charge per gross hectare ($) (D) = E x B Residential 335 18750 6281250 22,113 Commercial 253 22500 5692500 26,535 Industrial 106 22500 2362500 26,535 Totals 694 14358750 Total Recoverable from Development Charge7 $ 16,934,000 $ per Consumption Unit (Litre) (E) $ 1.188 2.4.3 Sanitary Sewer System Total capital sanitary infrastructure expenditures which are expected to be allocated exclusively to new development through development charges were estimated based upon preliminary work completed on a sanitary master plan for the City. In order to provide an equitable allocation of these future anticipated costs between the three land use classifications, an equivalency factor related to the volumes of waste water generated by the various land uses was utilized. The City estimates that typical residential waste water generation in Yorkton equates to approximately 350 litres per person daily while similar to water usage, commercial and industrial uses are estimated to generate approximately 22,500 litres of sewage per hectare on a daily basis. 5 The anticipated serviced land required for each land use class to meet future development needs based upon the Crosby Hanna & Associates Future Growth Needs Analysis. 6 Equivalent Consumption per hectare for residential uses was calculated based upon 2.5 persons per dwelling multiplied a target density of approximately 15 dwellings per hectare as stated in the OCP, multiplied by an average daily consumption of 500 litres per person per day. Commercial and industrial consumption is estimated to be 22,500 litres per hectare. 7 See Table 2-1. 8 This value is calculated by dividing the total capital expenditure by the total consumption units. COPY City of Yorkton Development Charge 2-6 p:\20104775\00_coy_offsite_lev_b\engineering\03.00_conceptual_feasibility_design\rpt_coy_development_levy_background_20131209.docx Table 2-5 Sanitary System Development Charge Calculations Land Use Type Projected Growth Area9 (ha) (A) Equivalent Generation per hectare10 (B) Total Generation Units (L/day) (C) = A x B Development Charge per gross hectare ($) (D) = E x B Residential 335 13125 4396875 17,219 Commercial 253 22500 5692500 29,518 Industrial 106 22500 2385000 29,518 Totals 694 12474375 Total Recoverable from Development Charge11 $ 16,365,000 $ per Generation Unit (Litre) (E) $ 1.3112 9 The anticipated serviced land required for each land use class to meet future development needs based upon the Crosby Hanna & Associates Future Growth Needs Analysis. 10 Equivalent Generation per hectare for residential uses was calculated based upon 2.5 persons per dwelling multiplied a target density of approximately 15 dwellings per hectare as stated in the OCP, multiplied by an average daily generated waste water of 350 litres per person per day. Commercial and industrial generation is estimated to be 22,500 litres per hectare. 11 See Table 2-1. 12 This value is calculated by dividing the total capital expenditure by the total generation units. COPY 2 - Development Charge Calculation 2-7 2.4.4 Storm Sewer System Runoff coefficients are frequently employed by engineers to predict the amount of water which is shed from a property expressed as a percentage of the total amount of precipitation. There is a direct correlation between runoff coefficients and land use. Higher runoff coefficients associated with larger building mass and more intensive commercial and industrial land uses generate greater runoff from a site which implies a greater reliance on municipal storm water systems. The City estimates a total capital expenditure exceeding $16 million over the next 25 years with 100% of this investment directly attributed to the City's growth areas. Table 2-6 Storm Sewer System Development Charge Calculations Land Use Type Projected Growth Area13 (ha) (A) Land Use Runoff Coefficient14 (B) Total Impervious Hectares (C) = A x B Weighted Average Recoverable ($) (D) Development Charge per gross hectare ($) (E) = D/A Residential 335 50% 167.5 1,605,773.33 4,793 Commercial 253 90% 227.7 2,182,893.05 8,628 Industrial 106 70% 74.2 711,333.62 6,711 Totals 694 469.4 Total Recoverable from Development Charge 15 $ 4,500,000 13 The anticipated serviced land required for each land use class to meet future development needs based upon the Crosby Hanna & Associates Future Growth Needs Analysis. 14 Runoff coefficients are an industry standard technique established through the application of the Rational Method for estimating a design discharge from a small watershed. 15 See Table 2-1. COPY City of Yorkton Development Charge 2-8 p:\20104775\00_coy_offsite_lev_b\engineering\03.00_conceptual_feasibility_design\rpt_coy_development_levy_background_20131209.docx 2.4.5 Recreation According to information provided by the City of Yorkton, it is expected that approximately $10,000,000.00 will be expended on the construction of new recreational infrastructure over the next 25 years. It is expected that 100% of this future expenditure will benefit new development. Commercial and industrial developments are anticipated to have negligible impact on or benefit derived from these facilities and as such, 100 percent of the anticipated future expenditures are allocated to residential development. Based upon this estimated capital expenditure and an estimated residential benefiting area of 335 hectares, the gross hectare Development Charges are calculated as follows: Table 2-7 Recreation Development Charge Calculations Land Use Type Projected Growth Area16 (ha) (A) % Allocation (B) Development Charge per gross hectare ($) (C) = D / A x B Residential 335 100% 29,851 Commercial 253 0% 0.00 Industrial 106 0% 0.00 Totals 694 Total Recoverable from Development Charge17 (D) $10,000,000 16 The anticipated serviced land required for each land use class to meet future development needs based upon the Crosby Hanna & Associates Future Growth Needs Analysis. 17 See Table 2-1. COPY 2 - Development Charge Calculation 2-9 2.5 SUMMARY OF LAND USE DIFFERENTIATED DEVELOPMENT CHARGES The following table summarizes the calculated development charges for all of the forecasted capital projects in the City based upon a differentiated rate for the three land use classifications. Table 2-8 Summary of Land Use Differentiated Charge Calculations Land Use Type Roadway and Related Infrastructure ($/hectare) Water System ($/hectare) Sanitary System ($/hectare) Storm System ($/hectare) Recreation ($/hectare) Total Development Charge ($/hectare) Residential 14,414 22,113 17,219 4,793 29,851 88,390 Commercial 106,793 26,535 29,518 8,628 - 171,474 Industrial 107,356 26,535 29,518 6,711 - 170,119 COPY COPY REPORT 3-1 3 Development Charge Implementation 3.1 LAND USE SPECIFIC VERSUS UNIFORM DEVELOPMENT CHARGES There are many ways in which communities may calculate and apply development charges. The preferred method for any community generally depends upon the community's administrative capacity to update and implement the charge and the founding principles used in its creation. There are two methods widely employed within Saskatchewan communities which include Land Use Specific Charges and Uniform Development Charges. This report employs the Land Use Specific Charge reflecting the variable impact on, and demand for, infrastructure by the three main land uses present within the City. Although this method adds complexity to the calculation and the administration and maintenance of the development charge, it is more defendable within the development community since the charge applied to each type of land use is tailored to its perceived benefit. Many smaller communities utilize a Uniform Development Charge which distributes a community's growth related costs equally regardless of the type of land use. Uniform charges are generally easier to administer and maintain as the process is consistent with uniform tax and utility rates regularly assessed by the community; but tend to be more contentious within the development community as they are not seen to accurately reflect a specific industry's impact on municipal infrastructure. Using the data presented in Table 2-1, the following table illustrates the calculation of a Uniform Development Charge: Table 3-1 Uniform Development Charge Capital Infrastructure Total Capital Cost ($) Total Recoverable from Development Charges ($) Municipal Responsibility ($) Uniform Development Charge ($/hectare) Road and Related Infrastructure 47,982,500 43,227,000 4,755,500 62,287 Water System 18,950,000 16,934,000 2,016,000 24,401 Sanitary System 16,365,000 16,365,000 Nil 23,581 Storm System 36,000,000 4,500,000 31,500,000 6,484 Recreation 10,000,000 10,000,000 Nil 14,409 Total 129,297,500 91,026,000 38,271,500 131,161 Projected Growth Area (ha) 694 COPY City of Yorkton Development Charge 3-2 p:\20104775\00_coy_offsite_lev_b\engineering\03.00_conceptual_feasibility_design\rpt_coy_development_levy_background_20131209.docx Based upon this method, a per hectare development charge of $131,161 would be applied to all new development regardless of the type of land use. In this case, the Uniform Development Charge tends to benefit non-residential and penalize residential development, potentially creating an unintended disincentive for residential development. 3.2 DEVELOPMENT CHARGE ADJUSTMENTS Communities are often successful in receiving grants or other forms of financial assistance (e.g. federal/provincial funding, fundraising, private donor contributions, etc.) to offset the cost of growth-related capital costs. It is appropriate that the gross servicing costs be reduced by the anticipated value of grants and contributions to the extent that they are able to be used to fund growth-related costs. This is generally acknowledged because the grants and other contributions are offsetting municipal costs of service, of which the benefits accrue to all ultimate system users. Where conditional grants have been secured by the City towards a specific project, the project cost should be reduced by the amount of the grant. Unconditional grants, even though they may have been utilized by the City for financing a project, are not deducted from the final project costs, as it can be rationalized that such funding could have been used for other projects. For the purposes of this report, it is assumed that any grants or alternative forms of funding received for the capital projects listed in Appendix "C" will be applied to reduce the gross project cost thus sharing the benefit proportionately between new and existing developments. 3.3 DEVELOPMENT CHARGE ASSESSMENT It is proposed by the City that 50% of the total calculated development charges will become due immediately upon execution of the servicing or development agreement and that the balance of development charges will be assessed incrementally as the serviced properties are sold, prior to site development. Net development area definitions will be applied in determining development charge obligations. Net development area is defined as follows: Gross Area - The area of lands to be developed in hectares that have not previously been subject to a development charge. Less: Any environmental reserves contained within the development area including environmental reserves and environmental easements. Less: Allowance for Municipal Reserves. Less: Lands dedicated for public roadways. Equals: Net Developable Area, which is the area subject to offsite levies. Sections 171(3) and 172 (4) of The Planning and Development Act, 2007 prohibit the assessment of more than one development levy per development, or the assessment of a servicing fee for work previously addressed by a development levy unless the municipality will incur additional capital costs as a result of the proposed subdivision. The consequences of this is that where a subdivision of a new parcel occurs and a servicing agreement is executed to assess a servicing fee for the subdivision, a development levy may not be assessed in the future on that property for any works previously undertaken or funded by the original COPY 3 - Development Charge Implementation 3-3 servicing fee unless it can be shown that the intensification of the property development will result in the municipality incurring additional capital costs as a result of the intensification. 3.4 DEVELOPMENT CHARGE CREDITS AND EXEMPTIONS Development Charges will not be collected on lands where: 1. It can be shown or it is reasonable to assume that the land was previously connected to all municipal services including water, sanitary sewer, and storm drainage services and road access; or 2. There will be a reasonable opportunity to collect offsite levies in the future, upon subdivision and further servicing of the land; or 3. The land remains completely un-serviced. Where a new service is provided to an existing residence but it is not appropriate to assess a charge in its entirety then an appropriate connection charge will be assessed to allow the service connection. The connection charge will be evaluated based upon the equivalent value of the development charge components for services provided, land area used by an equivalent residence on an urban lot and future opportunities to collect the full charges. This occurs only where an existing, formerly un-serviced residence is connected to City services where no planning, subdivision or zoning changes are contemplated. The City may also consider providing a partial or full exemption where it is consistent with an adopted economic development initiative as a means of further encouraging the establishment of a specific type of new development, or density of development in strategic areas of the city. Such an exemption would be funded within the broader city tax structure. Situations often arise where a developer proposes development in advance of the planned construction of the associated external infrastructure needed to support this new development creating a divergence between the City's project budgeting and development charge fee funding. The City should consider adopting a policy requiring a developer to be solely responsible for funding all of the external capital works which would have otherwise been provided by the City where a development precedes its forecasted servicing. This private expenditure would be considered a loan to the City to be credited against the calculated development charge with the outstanding balance repaid by the City at a later date when the capital work project was original intended to be completed based upon the City's capital project schedule. 3.5 MUNICIPAL FINANCING, BUDGETING AND INFLATION There is likely to be an occasional disconnection between the timing of capital infrastructure projects and development charge accounting, creating temporary funding shortfalls within the dedicated development charge account, resulting in the potential need for the City to provide temporary financing for these projects. A detailed financial plan forecasting and reconciling these anticipated divergences should be undertaken as part of the City's regular five year capital works budgeting process. Recognizing that this is a living document and that economics change over time, it is essential that the cost estimates used to calculate the development levy/servicing fee be updated regularly to reflect annual COPY City of Yorkton Development Charge 3-4 p:\20104775\00_coy_offsite_lev_b\engineering\03.00_conceptual_feasibility_design\rpt_coy_development_levy_background_20131209.docx inflation. It is also important to update these estimates as formal project tenders are received to ensure that the most accurate data is employed. The levy rate calculations should be fully updated at least once every five years to match the City's capital works budgeting cycle. 3.6 DEVELOPMENT CHARGE PHASING Policies and processes can either hinder or incent development in a community. The estimated new charge represents a significant increase from the current rate applied particularly within the commercial and industrial sectors which may discourage private investment into commercial or industrial developments in the City. The City needs to consider and weigh all of the positive and negative implications of the new rate on new development within the community when considering an implementation policy. Given the significant rate increase anticipated, it may be prudent to consider a phased adoption of the new rate over a number of years to somewhat mitigate the potential sticker shock for the development community that could accompany the adoption of the revised rate. As illustrated in the table below, the City's capital project forecast identifies several key sanitary system projects which are scheduled to be initiated in the next five years to which an immediate funding source is needed. Other capital projects are scheduled within the longer term, providing more time to acquire the necessary financial resources in advance of construction. Table 3-2 Capital Project Forecast Capital Infrastructure Capital Project Costs ($) Short Term 2013 - 2020 Medium Term 2021-2030 Long Term 2031-2038 Road and Related Infrastructure 7,180,000 19,524,500 16,522,500 Water System 4,704,000 5,230,000 7,000,000 Sanitary System 7,903,000 4,550,000 3,912,000 Storm System 1,500,000 Nil 3,000,000 Recreation Nil 10,000,000 Nil Total 21,287,000 39,304,500 30,434,500 COPY REPORT A-1 Appendix A - The City of Yorkton Future Growth Needs Analysis COPY COPY THE CITY OF YORKTON FUTURE GROWTH NEEDS ANALYSIS 2011 UPDATE PREPARED FOR: THE CITY OF YORKTON PREPARED BY: CROSBY HANNA & ASSOCIATES LANDSCAPE ARCHITECTURE AND PLANNING SASKATOON, SK January 31, 2012 COPY TABLE OF CONTENTS 1. INTRODUCTION ............................................................................................................................................. 1 2. POPULATION ................................................................................................................................................. 3 2.1 HISTORICAL POPULATION TRENDS ........................................................................................................................ 3 2.2 POPULATION PROJECTIONS ................................................................................................................................. 5 3. RESIDENTIAL .................................................................................................................................................. 8 3.1 LAND FORECAST AND METHODOLOGY ................................................................................................................... 8 4. INDUSTRIAL AND COMMERCIAL .................................................................................................................. 10 4.1 LAND FORECAST AND METHODOLOGY ................................................................................................................. 10 4.2 INDUSTRIAL LAND FORECAST ............................................................................................................................. 11 4.3 COMMERCIAL LAND FORECAST .......................................................................................................................... 13 5. CONCLUSION ............................................................................................................................................... 15 COPY 1 1. INTRODUCTION The purpose of this study is to review the need for additional development lands for the City of Yorkton, taking into consideration among other things, the potential impact of mining development on the regional economy. This study examines future land needs for residential, commercial and industrial development, based on these and other economic trends as well as the City's population trends, land inventory and long term future growth plans. As an update to the 2009 City of Yorkton Future Growth Needs Analysis, the 2011 study has re-examined population trends and projections using updated data from Saskatchewan Health. In addition to this, population projections have been adjusted to account for changes in the economic climate of Yorkton and the region. The two canola crushing plants - used as a basis for population growth in 2009, one located in the City of Yorkton and one located adjacent to the City, are now staffed and operational and so information regarding future employment growth and multipliers has been updated to include new developments that are influencing the growth of Yorkton (i.e. expansion and development of new potash mines in the region). The same methodology used in the 2009 report has been used in the 2011 report to project population and calculate land need in the City based on these new variables. Other changes in the report include an increase in the density used for residential land need, from 4 dwelling units per acre to 6 dwelling units per acre to reflect trends in urban development. Based on the findings of this report, we respectfully submit that the recommendations made are necessary for the City to continue to accommodate rapid grow in terms of both population and business development. The future growth pattern recommended in 2011 is based on sound planning principles, historical trends, and the projected land use requirements of the City. This report was developed with full access to the City of Yorkton technical information such as engineering studies, land use information, and cadastral data. It is important to note that the following land needs analysis is been based on a 25 year planning horizon as necessary services and amenities required and expected by residents living in Yorkton neighbourhoods, as well as required infrastructure, must be planned and accounted for years before actual development occurs. While following the City's future growth pattern as set out by its Future Land Use Map in the City's Development Plan, the City has defined its growth pattern (and land requirements) years in advance of actual development. This is a responsible course of action. As an example of a long term planning horizon, the City of Saskatoon's most recent annexation accounted for 40 years growth for the municipality. The City of Saskatoon also points out in their most recent Official Community Plan (2009) that residential land being developed today in the Silverspring neighbourhood, was annexed in 1979, based on a Community Planning Scheme adopted by City Council in 1966. Furthermore, the City of Regina, in their most recent Industrial Growth Strategy (2007) projected industrial land on a 25 year time horizon, detailing that bringing lands under the City's jurisdiction will enable the City to plan for an efficient and comprehensive extension of municipal infrastructure and will allow the City to regulate development in these areas to complement the long-term growth strategy. Without a sufficient supply of land (residential, commercial and industrial) the City of Yorkton will not be able to meet the demands created by economic growth in the region which is the main driver of population growth. The City of Yorkton must have land readily available to meet the needs of an expanding population as well as having the ability to offer and attract new, larger employers who may needs large tracts of industrial or commercial land. The risk in not looking far enough ahead in the future is that Yorkton will not be able to respond in a timely manner to economic expansion and development pressure arising from rapid economic growth in the region. COPY 2 Using the same methodology as the 2009 report, historical growth, current land supply, employment densities and a migration assumption suggest the following for the City of Yorkton:  The City will require an additional 523-850 acres for residential growth, an additional 395-626 acres for commercial growth, and an additional 28-259 acres for industrial growth. COPY 3 2. POPULATION 2.1 Historical Population Trends Population trends for the City of Yorkton for the period of 2001 - 2011 are presented in Table 2-1. Between 2001 and 2011, the City's population grew at an average annual rate of 0.89%. Over the past five years (2006 to 2011), this trend increased to almost double the 10 year rate, to an average annual growth rate of 1.65%. TABLE 2-1: HISTORICAL POPULATION CITY OF YORKTON (2001 - 2011) Year Population % Change 2001 16,898 --- 2002 17,032 0.79 2003 16,916 -0.68 2004 17,186 1.60 2005 17,261 0.44 2006 17,006 -1.48 2007 17,260 1.49 2008 17,603 1.99 2009 17,608 0.03 2010 19,588 11.2 2011 18,471 -5.7 Net Change 2001 - 2011 1,573 -- Average Annual Change 2001 - 20011 -- 0.89% Net Change 2006 - 2011 1,465 -- Average Annual Change 2006 - 2011 -- 1.65% SOURCE: Saskatchewan Ministry of Health Covered Population 2001 - 2011 According to the Saskatchewan Ministry of Health, the most recent health card renewal was in December 2011. Through the renewal process, the provincial health registry was updated and persons who cease to be eligible for Saskatchewan health coverage were removed from the list of beneficiaries. Population decreases have been observed following previous health card renewal years. The Covered Population COPY 4 figures have been closest to Statistics Canada population estimates in the years following a health card renewal (i.e. 2003, 2006, 2009 and 2012). The next health card renewal will be in 2014. In light of this, it is important to note the limitations of using Saskatchewan Health Covered Population Statistics, as generally each year following a health card renewal a drop in the population count can usually be seen. Historical trends used to project population for the City of Yorkton are based on the five year historical trend (2006 - 2011). Although Saskatchewan Health population numbers show a decline between 2010 to 2011, the drop is an error. The drop in the population can be explained by an allocation error made by Saskatchewan Health that caused many of its figures in 2010 to be inaccurate. A switchover was made to a new method of trying to calculate them, however, where certain information wasn't in the record; it defaulted back to some old information. The mistake was rectified in the 2011 numbers and thus, is why a decrease is shown from 2010 to 2011. The CEO of Saskatchewan Health estimates that the correct figure for Yorkton in 2010 would have been around the 18,000 mark, making the average annual growth from 2010 to 2011 around 2.5%.1 1 Chris Putnam, "Yorkton Population Numbers In", Yorkton This Week, January 18th, 2012. COPY 5 2.2 Population Projections On the basis of past trends and present population size and structure, it was possible to develop four projections for population change in the City of Yorkton for a 25 year planning time frame (i.e. 2011 - 2036) (See Table 2-2). Projection #1 contains a linear extrapolation of observed rates of change over the last five years, using an average annual growth rate of 1.65%. The second and third projections (Projections #2 & #3) were made using the assumption that migration rates will increase over the next several years (over the five year historical trend). This assumption is made to account for the following factors: a potential Agrium potash mine which will create 450 new jobs and a potential BHP Billiton potash mine near Melville (two drill rigs are currently operating and a large seismic survey is underway with an estimation of 500 direct jobs at the mine); and an expansion to Mosaic's Esterhazy mine, resulting in 250 new jobs being created. In total, it has been estimated that a total of 1,200 direct jobs will result from all three of these potash mines. The U.S. Bureau of Economic Analysis2 lists employment multipliers by industry aggregation, showing a range of mining multipliers from 2.0 to 2.1. For these projections, an employment multiplier of 1.5 has been used to calculate potential net employment gain, meaning for each new job in a primary industry, 0.5 induced or indirect jobs will be created as well. An employment multiplier of 1.5 is a relatively conservative number to use based on the fact that export or basic industries (i.e. potash and canola) which produce and sell goods that bring in new income from outside the area (i.e. product is exported) create a larger multiplier effect than industries that produce goods and services consumed locally. This is evidenced by research done by Stabler and Olfert in 1992 (Restructuring Rural Saskatchewan: The Challenge of the 1990's), in which they state, "Development of a major mine in the vicinity of a community can produce a local boom in housing and commercial development. Several dramatic examples of this phenomenon were apparent in Saskatchewan during and after the 1960s when potash mines were developed at several locations in the central and southeastern parts of the province". It is also pointed out in their research that in addition to population and commercial development growth, relative gains in business were also apparent. Using an employment multiplier of 1.5 equates to a net increase of 1,800 new jobs (1,200 new jobs multiplied by 1.5 to account for spin-off effects). For the purpose of our analysis, we will assume that 75% of people migrating to the area will make Yorkton their permanent residence due to the fact that Yorkton is the largest trading centre in the region and its many amenities will serve to draw a large portion of these new workers. Based on this assumption, 1,350 new workers will relocate to Yorkton. Yorkton's average household size, based on the Federal Census in 2006, is the City's population from 2006 (15,038) divided by the number of private dwellings located in the city during the same time (6,903), yielding an average household size of 2.2 persons. Based on Yorkton's average household size, it has been assumed that a total of 1,350 new jobs will actually bring in a total of 2,970 new people (i.e. 1,350 multiplied by 2.2). It is uncertain how quickly the mines will develop so several projections have been developed. Projection #2 shows the implications of a large influx of workers over a ten year time frame (i.e. after 2021, it is assumed that population growth will then return to 1.65% growth per year). Projection #3 shows the same number of workers coming to Yorkton over a five year time frame (i.e. after 2016, it is assumed that population growth will then return to 1.65% growth per year). Table 2-2 demonstrates these implications. 2 U.S. Department of Commerce, Regional Multipliers: A User Handbook for the Regional Input-Output Modeling System, March 1997, Third Edition. (Economics and Statistics Administration - Bureau of Economic Analysis), 54. COPY 6 Under Projection #2, population growth will increase by an average annual growth rate of 2.19% should an additional 2,970 people move to Yorkton in the next ten years, yielding a population of 31,920 over the next twenty five years. Under Projection #3, population growth will increase by an average annual growth rate of 2.21% should an additional 2,970 people move to Yorkton in the next five years, yielding a population of 32,088 over the next twenty five years. The fourth projection (Projection #4) creates a safety factor (+0.5%) over the imminent growth that will be created due to the development of potash mines in the region. Based on a 2.75% average annual growth, Projection #4 shows that the City of Yorkton could potentially see its population increase to 36,395 over the twenty five year time frame. The City would see between 537 people per year to 923 people per year over the next twenty five years. Based on Saskatchewan Health population numbers, this number is feasible, due to the error made in calculating the 2010 population number (Section 2.1), which should have shown Yorkton's population in the range of 18,000 people. Based on this number, Yorkon saw an average annual growth rate of 2.5% between 2010 - 2011. It is important to note that municipalities in Saskatchewan have in the recent past underestimated their population growth. The City of Saskatoon has been growing at a rate of 2.5% consistently for the past five years and the City's Planning and Development Department expects the trend to continue as long as the economy thrives and employment is plentiful (Star Phoenix "Rapid Population Growth Poses Challenges", December 29th, 2011)3. Recent population projections completed for the City of Saskatoon have underestimated the actual population numbers (The City of Saskatoon and the Saskatoon Health Region Population Projections 2006 - 2026, June 2010). The implications of underestimating population growth for a municipality poised for rapid growth are much larger than overestimating population numbers (i.e. a shortage of land versus the ability to meet and respond to demand in a planned and timely fashion). It is reasonable to assume that growth in the City of Yorkton will continue to be strong, like other urban, regional centres in the province have observed. To demonstrate the implications of this, two projections have been used in the following sections, as preferred growth scenarios, in determining future land needs (Projections #3 & #4 - 2.21% and 2.75% average annual growth rates respectively). As pointed out by Kasier et al, "Instead of a single projection, a population or economic forecast usually should include several projections in order to create an interval or bracketed forecast of future population or employment and to engage policy makers and the public in discussion of both the underlying assumptions and future impacts".4 3 Jason Warick, "Rapid Population Growth Poses Challenges", The Star Phoenix, December 29th, 2011. 4 Edward J. Kaiser, et al,. Urban Land Use Planning (University of Illinois: Board of Trustees, 2006) 143-144. COPY 7 TABLE 2-2: CITY OF YORKTON POPULATION PROJECTIONS 2008 - 2033 Projection Year 2011 2016 2021 2026 2031 2036 Projection 1: Five-year trend1.65% 18,471 20,049 21,761 23,620 25,637 27,827 Net Population Increase per interval 1.65% -- 1,578 1,712 1,859 2,017 2,190 Average Annual Population Increase 1.65% -- 316 ppl/year 342 ppl/year 372 ppl/year 403 ppl/year 438 ppl/year Projection 2: Five-year trend (plus extra 297 ppl. per year 2011- 2021) 18,471 21,584 24,962 27,094 29,408 31,920 Net Population Increase per interval -- 3,113 3,378 2,132 2,314 2,512 Average Annual Population Increase -- 623 ppl/year 676 ppl/year 426 ppl/year 463 ppl/year 502 ppl/year Projection 3: Five-year trend (plus extra 594 ppl. per year 2011- 2016) 18,471 23,118 25,093 27,236 29,563 32,088 Net Population Increase per interval -- 4,647 1,975 2,143 2,327 2,525 Average Annual Population Increase -- 929 ppl/year 395 ppl/year 429 ppl/year 465 ppl/year 505 ppl/year Projection 4: 2.75% Average Annual Growth 18,471 21,154 24,228 27,747 31,778 36,395 Net Population Increase per interval 2.75% -- 2,683 3,074 3,519 4,031 4,617 Average Annual Population Increase 2.75% only -- 537 ppl/year 615 ppl/year 704 ppl/year 806 ppl/year 923 ppl/year COPY 8 3. RESIDENTIAL 3.1 Land Forecast and Methodology Assuming that average household size in Yorkton remains in the current level of 2.2 persons per household, it is possible to estimate the number of dwelling units that will be required to accommodate projected growth. Table 3-1 sets out the estimated number of dwelling units that will be required to accommodate growth using Projection #3 (average annual growth rate of 1.65% plus an extra 594 people per year during 2011 - 2016). This preferred projection for the City of Yorkton (as highlighted in Table 2-2) assumes similar migration as observed between 2006 - 2011, plus additional in-migration (i.e. an additional 594 people per year) resulting from potential employment growth (i.e. potash mines & expansion, etc.). After 2021, it is assumed that population growth will then return to 1.65% growth per year. Given this scenario, the City of Yorkton will reach a population of 32,088 people by 2036. Additional dwelling units needed over the twenty-five year time frame are presented in Table 3-1 (i.e. total population divided by 2.2 - average household size in Yorkton). Table 3-1 also indicates how many additional dwelling units would be required if population growth exceeded that of Projection #3. Projection #4 (showing a 2.75% average annual growth rate) indicates that the City of Yorkton would require 1,358 acres of land over the twenty year time frame and an additional 8,148 dwelling units would be needed to satisfy housing requirements. Over the past several years, the observed average residential build out density for new subdivisions in Yorkton has been 3.7 lots per gross acre. Given increased house prices, and corresponding increases in residential densities (i.e. smaller lots, or multi-family housing becoming more popular), we have projected the amount of residential land required based on an average residential build-out density of 6.0 lots per gross acre. Additional dwelling units and land required (shown as cumulative) are shown in Table 3-1. COPY 9 TABLE 3-1: CITY OF YORKTON ADDITIONAL DWELLING UNITS / ACRES REQUIRED Year 2011 2016 2021 2026 2031 2036 Projection #3 (2.21%) 18,471 23,118 25,093 27,236 29,563 32,088 Additional Dwelling Units -- 2,112 3,010 3,984 5,042 6,160 Additional Acres -- 352 502 664 840 1,031 Projection #4 (Safety Factor 2.75%) 18,471 21,154 24,228 27,747 31,778 36,395 Additional Dwelling Units -- 1,220 2,617 4,217 6,049 8,148 Additional Acres -- 203 436 703 1,008 1,358 The City of Yorkton currently has 508 acres within its current boundary available for residential development. Given this, 523 acres (i.e. 1,031 - 508 = 523) are needed to accommodate residential growth to 2036 under Projection #3. Should growth exceed this estimate, approximately 850 acres of land could be needed for residential development (Projection #4). COPY 10 4. INDUSTRIAL AND COMMERCIAL 4.1 Land Forecast and Methodology According to research done for the Lincoln Institute of Land Policy by Gerrit Knapp and Terry Moore5 (Land Supply and Infrastructure Capacity: Monitoring for Smart Urban Growth, 2000), forecasting the demand for commercial and industrial land uses is typically done in two ways. The first way involves applying a ratio of commercial or industrial lands to population to project future land needs. The second way involves an estimation of floor area requirements based on existing floor areas and expected rate of population growth. The method used in this report involves applying a ratio of commercial and industrial land to projected population growth. A baseline projection for industrial land needed over the planning time frame (25 years) was performed based on forecasting scenarios recommended by Philip Berke, David R Godschalk and Edward John Kaiser in their book entitled "Urban Land Use Planning"6. In order to forecast industrial and commercial land need using a ratio of land to population, Kaiser et al recommended the following steps: a) determine the number of employees to be accommodated; b) develop future employment density standards (i.e. employees per gross acre); c) divide the future number of employees by density standards to estimate the number of acres that will be required; and, d) add a safety factor. For the City of Yorkton, the number of employees to be accommodated was calculated using Projection #3, which indicates that the City of Yorkton could potentially reach a population of 32,088 people by 2036. Given this, there will be an additional 13,617 residents within the City in the planning period. The number of employees to be accommodated is outlined in the sections below. To determine both the number of employees to be accommodated (step a) and a future employment density standard (step b), Federal Census Data (2006) was used to calculate the percentage of residents working on either industrial or commercial (and community service) zoned land within the City of Yorkton. The number of employees working within the Yorkton Census Agglomeration was used as the baseline to determine this. A Census Agglomeration (C.A.) is formed by one or more adjacent municipalities centered on a large urban area (known as the urban core). To be included in the C.A., other adjacent municipalities must have a high degree of integration with the central urban area, as measured by commuting flows derived from census place of work data. Table 4-1, breaks down the Yorkton C.A. labour force according to industry and generally which class of zoning the industry will fall into, commercial or industrial. Community service labour (e.g. civil service, education, healthcare) has been classified as a commercial use. 5 Gerrit Knapp and Terry Moore, "Land Supply and Infrastructure Capacity: Monitoring for Smart Urban Growth", Lincoln Institute of Land Policy (2000), 15. 6 Kaiser, 365-371. COPY 11 TABLE 4-1: CITY OF YORKTON CENSUS AGGMLOMERATION INDUSTRY BREAKDOWN, STATISTICS CANADA 2006 Industry Labour Force (persons) Zoning Classification Agriculture and other resource-based industries 670 Industrial Construction 470 Industrial Manufacturing 585 Industrial Wholesale trade 375 Industrial Retail trade 1,355 Commercial Finance and real estate 430 Commercial Health care and social services 1,300 Commercial Educational services 625 Commercial Business services 1,300 Commercial Other services 1,960 50% Industrial, 50% Commercial Total Experienced Labour Force* 9,070 -- Total Industrial Sector Workers in CA 3,080 -- Total Commercial Sector Workers in CA 6,970 -- Source: Statistics Canada 2006 Federal Census *Refers to persons 15 years and over, excluding institutional residents, who were employed or unemployed during the week (Sunday to Saturday) prior to Census Day, and who had worked for pay or in self- employment. According to city land use data provided by the City of Yorkton, there are currently 995 acres of land being used for industrial activity within city boundaries. For commercial, 1,021 acres are being used. These are gross numbers that include roads, lane, and public spaces (i.e. utilities, buffers, etc.). It is important to note that the categorization of zoning classifications in Table 4-1 may not correlate directly to the industry (as indicated in the Federal Census data) in all instances. For example, all wholesale trades are classified as industrial uses; however, on the ground these uses could be zoned commercial, depending on the type of wholesale trade or the location of the business. The breakdowns of industrial and commercial land are very broad and while the need for land is apparent, the type of land that may be needed (i.e. commercial or industrial) is not always clear. 4.2 Industrial Land Forecast Federal Census data (2006) has been used to calculate the percentage of the total population within the C.A. (17,438) working within the industrial sector. The total experienced labour force 15 years and older working in the industrial sector within the C.A. equates to 17.7% (3,080 divided by the population of the COPY 12 CA - 17,438). To update this to the City of Yorkton's most current population data (Sask Ministry of Health 2011), the ratio of 17.7% has been applied to the total population of the City of Yorkton (18,471), yielding 3,269 current employees working in the industrial sector. Based on the number of employees currently working in the industrial sector (3,269), calculated from Federal Census employment data, the employment density standard for industrial land in the City of Yorkton is 3.3 persons per acre (3,269 residents currently working within the industrial sector divided by total acres currently being used for industrial, 995 acres). By applying this density standard (3.3 persons per acre) to the number of additional employees who will be working in the industrial sector over the twenty five year time frame - 2,410 additional employees (13,617 additional people multiplied by the industrial employee ratio of 17.7%), it is possible to estimate the number of acres required over the indicated time frame (step c). Table 4-2 outlines the results (cumulative). It is important to note that generous safety factors, recommended by Kaiser et al, 1995, are often added to determine the number of required acres, as employment density patterns vary widely with even standard industrial classifications, and are unlikely to remain constant over time. "Add a safety factor to accommodate the possibility that employment growth is greater than expected, or at a lower density than planned, and to create an industrial reserve." Suggested by Knapp and Moore (2000) in their work for the Lincoln Institute of Land Policy, considerable judgment must be exercised when using such standards to determine the number of required acres in part because the cost of an underestimate is viewed as greater than the cost of an overestimate. Given this, we have considered the types of industry and occupations which dominate the Yorkton landscape, based on historical data provided by the Federal Census. During the 2006 Census year Yorkton was strong, relative to the province as a whole in the following sectors: retail trade, health care and social services, business services, wholesale trade, and manufacturing. There was less employment relative to the provincial average in agricultural and other resource based industries, educational services, construction, and finance and real estate. Accordingly, industries differ by sector, with areas dominated by warehousing and primary industries having much lower employment densities than those that are more labour intensive. Table 4-2 presents the required industrial acreage for the recommended population projections over the 25 year time frame (step c) using the observed employment density standard for industrial land (3.3 persons per acre). Industrial employment density standards may be different depending on the sub-sector (i.e. warehousing and primary industries typically require larger tracts of land than wholesale trade or manufacturing). In a study by the City of Regina regarding the Ross Industrial Park, it was found that the overall employment density was 5 persons per acre. Given this, it is assumed that a safety factor need not be considered in the projection for the City of Yorkton (step d) because we believe that employment density should not be much lower than 3.3 persons per acre. The City of Yorkton currently has 702 acres within its current boundary available for industrial development. Given the existence of 702 acres of developable land within the City boundaries, limited industrial land is needed over the short to medium term (28 acres). Projection #4 suggests that the City of Yorkton could potentially need 259 acres over the long term. COPY 13 TABLE 4-2: CITY OF YORKTON ADDITIONAL INDUSTRIAL LAND REQUIRED Year 2011 2016 2021 2026 2031 2036 Projection #3 (2.21%) 18,471 23,118 25,093 27,236 29,563 32,088 Additional Industrial Acres Required (cumulative) 3.3 persons / acre -- 249 355 470 595 730 Projection #4 (Safety Factor 2.75%) 18,471 21,154 24,228 27,747 31,778 36,395 Additional Industrial Acres Required (cumulative) 3.3 persons / acre -- 144 309 498 714 961 4.3 Commercial Land Forecast Federal Census data (2006) has been used to calculate the percentage of the total population within the C.A. (17,438) working within the commercial sector. The total experienced labour force 15 years and older working in the commercial sector within the C.A. equates to 34.4% (5,990 divided by the population of the C.A. - 17,438). To update this to the City of Yorkton's most current population data (Sask. Ministry of Health 2011), the ratio of 34.4% has been applied to the total population of the City of Yorkton (18,471), yielding 6,354 residents working in the commercial sector. Based on the number of employees currently working in the commercial sector, calculated from Federal Census employment data, the employment density standard for commercial land in the City of Yorkton is 6.2 persons per acre (6,354 residents currently working within the commercial sector divided by total acres currently being used for commercial, 1,021 acres). By applying this density standard (6.2 persons per acre) to the number of additional employees who will be working in the commercial sector over the twenty five year time frame - 4,684 additional employees (13,617 additional people multiplied by the commercial employee ratio of 34.4%), it is possible to estimate the number of acres required over the indicated time frame (step c). Table 4-3 shows the results (cumulative). Table 4-3 presents the required commercial acreage for the preferred population projection (Projection #3) over the planning time frame using the density standard of 6.2 persons per acre for commercial land. COPY 14 Similarly to the industrial land forecast, no safety factor has been added to the commercial land forecast (step d) as the current commercial employment density is relatively low. The City of Yorkton currently has 335 acres within its current boundary available for commercial development. Given the existence of 335 acres of developable land within the City boundaries, 395 acres (730-335 = 395) are needed to accommodate short to medium term commercial growth. Looking above the historical population trend and assumption of migration due to mining activities in the region, Projection #4 suggests that the City of Yorkton could potentially need 626 acres of commercial land over the twenty year time frame. TABLE 4-3: CITY OF YORKTON ADDITIONAL COMMERCIAL LAND REQUIRED YEAR 2011 2016 2021 2026 2031 2036 Projection #3 (2.21%) 18,471 23,118 25,093 27,236 29,563 32,088 Additional Commercial Acres Required (cumulative) 6.2 persons / acre -- 258 367 486 615 755 Projection #4 (Safety Factor 2.75%) 18,471 21,154 24,228 27,747 31,778 36,395 Additional Commercial Acres Required (cumulative) 6.2 persons / acre -- 149 319 515 738 994 COPY 15 5. Conclusion The City of Yorkton requires additional land to accommodate future development. Potential employment growth in the City and broader region are expected to drive rapid, unprecedented growth in the City both in terms of population and employment. Land need calculations based on historical growth, current land supply, employment densities and a migration assumption, suggests that the City will require an additional 523-850 acres for residential growth, an additional 395-626 for commercial growth, and an additional 28-259 acres for industrial growth. The City has identified an appropriate amount of future short and medium term residential and commercial land within its 2011 boundary alteration application. The cost and planning process associated with designing and servicing new urban areas (e.g. layout, servicing, and construction) is such that a city must have adequate land within its boundaries to respond to rapidly changing economies and migration patterns. A 25 year planning horizon is reasonable and has precedent in Saskatchewan (e.g. Saskatoon's recent annexation is intended to accommodate 40 years growth). COPY REPORT B-1 Appendix B - City of Yorkton Future Land Use Concept Map COPY COPY COPY REPORT C-1 Appendix C - Capital Project Worksheets COPY COPY Figure 1: Road and Related Infrastructure Capital Projects Road System Capital Costs (2013 Dollars) Benefit Allocation Total Capital Cost ($) Recoverable from Development Charge Municipal Responsibility # Description Target Year New Development Existing Development 1 Highway 9/Grain Millers Drive Intersection 2014 80% 20% 550,000.00 440,000.00 110,000.00 2 Highway 9 North Industrial Intersection 2018 100% 0% 1,600,000.00 1,600,000.00 - 3 Broadway Street, Hwy No. 52 off-ramp 2018 100% 0% 1,000,000.00 1,000,000.00 - 4 Range Road 2040 upgrade between Highway 10 and York Road East (including Hwy. No. 10 intersection) 2020 90% 10% 4,600,000.00 4,140,000.00 460,000.00 5 York Road Extension to Range Road 2040 (including intersection) 2023 90% 10% 4,130,000.00 3,717,000.00 413,000.00 6 Gladstone Avenue upgrade to Queen Street (including intersection) 2028 100% 0% 4,550,000.00 4,550,000.00 - 7 Sully Avenue Extension north of Hwy. No. 16 2028 100% 0% 10,157,500.00 10,157,500.00 - 8 Intersection Hwy No. 9 at Queen Street 2028 100% 0% 1,100,000.00 1,100,000.00 - 9 Range Road 2040 upgrade to connect to Proposed Truck Bypass 2033 100% 0% 2,062,500.00 2,062,500.00 - 10 York Road Extension from Range Road 2040 to Range Road 2039 2035 100% 0% 5,525,000.00 5,525,000.00 - 11 Range Road 2040 upgrade between Hwy No. 10 and Hwy. No. 16 (including Hwy. No.16 intersection) 2035 40% 60% 6,287,500.00 2,515,000.00 3,772,500.00 12 Range Road 2043 upgrade (including intersection of Rosefield at Queen Street) 2035 100% 0% 2,325,000.00 2,325,000.00 - 13 Gladstone Avenue Extension north of Hwy. No. 16 2035 100% 0% 4,095,000.00 4,095,000.00 - Total Capital Cost Estimate 47,982,500.00 43,227,000.00 4,755,500.00 Land Use Classification Projected Growth Area (ha) Vehicle Trip Ends (VTE) Total Equivalent VTE Development Charge per Gross Hectare ($) Residential 335 11.52 3,859.20 14,414.19 Commercial 253 85.35 21,593.55 106,792.65 Industrial 106 85.8 9,094.80 107,355.71 Totals 694 34,547.55 Total Recoverable from Development Charge $ 43,227,000.00 Cost per Trip End $ 1,251.23 COPY Figure 2: Water System Capital Projects Water System Capital Costs (2013 Dollars) Benefit Allocation Total Capital Cost ($) Recoverable from Development Charge Municipal Responsibility # Description Target Year New Development Existing Development 1 Husky Road to Darlington Street- 400 mm Trunk Main 2014 100% 0% 960,000.00 960,000.00 - 2 York Road to North Industrial - 500 mm 2014 60% 40% 4,800,000.00 2,880,000.00 1,920,000.00 3 Riverside Drive to York Road - 400 mm Trunk Main 2030 90% 10% 960,000.00 864,000.00 96,000.00 4 Grain Millers Drive - 500 mm Trunk Main 2025 100% 0% 4,080,000.00 4,080,000.00 - 5 West Tie In - 500 mm Trunk Main 2035 100% 0% 1,150,000.00 1,150,000.00 - 6 North Water Tower (10,000 m3) 2035 100% 0% 7,000,000.00 7,000,000.00 - Total Capital Cost Estimate 18,950,000.00 16,934,000.00 2,016,000.00 Land Use Classification Projected Growth Area (ha) Dwellings per Hectare Persons per Dwelling Litres per Person Consumption (L/hectare/day) Total Consumption Units (L/day) Development Charge per Gross Hectare ($) Residential 335 15 2.5 500 18,750 6,281,250 22,112.82 Commercial 253 1 1 22,500 22,500 5,692,500 26,535.39 Industrial 106 1 1 22,500 22,500 2,385,000 26,535.39 Totals 694 14,358,750 Total Recoverable from Development Charge $ 16,934,000.00 Cost per Consumption Unit $ 1.18 COPY Figure 3 : Sanitary System Capital Projects Sanitary System Capital Costs (2013 Dollars) Benefit Allocation Total Capital Cost ($) Recoverable from Development Charge Municipal Responsibility # Description Target Year New Development Existing Development 1 Trunk Installation Husky Road to WWTP - 900 mm (3410m) 2014 100% 0% 5,100,000.00 5,100,000.00 - 2 Trunk Installation Husky Road from Quance access to Hwy No. 10 Intersection - 900 mm (570m) 2014 100% 0% 853,000.00 853,000.00 - 3 Trunk Main along Hwy No. 10 - 525 mm (1625m) 2014 100% 0% 1,950,000.00 1,950,000.00 - 4 Husky Road, Hwy No. 10 to Hwy No. 9 Trunk Main- 700 mm (3250m) 2030 100% 0% 4,550,000.00 4,550,000.00 - 5 Queen Street Gravity Trunk Main to Rosefield Drive - 525 mm (3260m) 2038 100% 0% 3,912,000.00 3,912,000.00 - Total Capital Cost Estimate 16,365,000.00 16,365,000.00 - Land Use Classification Projected Growth Area (ha) Dwellings per Hectare Persons per Dwelling Litres per Person Consumption (L/hectare/day) Total Consumption Units (L/day) Development Charge per Gross Hectare ($) Residential 335 15 2.5 350 13,125 4,396,875 17,218.55 Commercial 253 1 1 22,500 22,500 5,692,500 29,517.51 Industrial 106 1 1 22,500 22,500 2,385,000 29,517.51 Totals 694 12,474,375 Total Recoverable from Development Charge $ 16,365,000.00 Cost per Consumption Unit $ 1.31 COPY Figure 4: Storm System Capital Projects Storm Water System Capital Costs (2013 Dollars) Benefit Allocation Total Capital Cost ($) Recoverable from Development Charge Municipal Responsibility # Description Target Year New Development Existing Development 1 West Side Drainage Remediation 2015 0% 100% 27,000,000.00 - 27,000,000.00 2 Hwy. No. 9 ( north industrial intersection crossing ) 2018 25% 75% 3,000,000.00 750,000.00 $2,250,000.00 3 Grid road to WWTP Hwy. No. 9 north crossing 2018 25% 75% 3,000,000.00 750,000.00 $2,250,000.00 4 Hwy. No. 9/Queen Street 2028 100% 0% 500,000.00 500,000.00 - 5 Gladstone Avenue extension north of Hwy. No. 16 (includes storm pond) 2035 100% 0% 2,500,000.00 2,500,000.00 - Total Capital Cost Estimate 36,000,000.00 4,500,000.00 31,500,000.00 Land Use Classification Projected Growth Area (ha) Land Use Runoff Coefficient Total Impervious Hectares Weighted Average Recoverable Development Charge per Gross Hectare ($) Residential 335 50% 167.5 1,605,773.33 4,793.35 Commercial 253 90% 227.7 2,182,893.05 8,628.04 Industrial 106 70% 74.2 711,333.62 6,710.69 Totals 12,474,375 469.4 Total Recoverable from Development Charge $ 4,500,000.00 Figure 5 : Recreation Capital Projects Recreation Capital Costs (2013 Dollars) Benefit Allocation Total Capital Cost ($) Recoverable from Development Charge Municipal Responsibility # Description Target Year New Development Existing Development 1 Ice Rink 2021 100% 0% 8,700,000.00 8,700,000.00 - Total Capital Cost Estimate 8,700,000.00 8,700,000.00 - Land Use Classification Projected Growth Area (ha) % Allocation Development Charge per Gross Hectare ($) Residential 335 100% 25,970.15 Commercial 253 0% - Industrial 106 0% - COPY COPY COPY COPY COPY REPORT D-1 Appendix D - Provincial Development Charge Survey COPY Figure 6: Provincial Development Levy Survey Community Residential Levy ($/hectare) Commercial Levy ($/hectare) Industrial Levy ($/hectare) Notes: Prince Albert $ 98,372.00 $ 98,372.00 $ 98,372.00 The City of Prince Albert adopted a uniform offsite levy rate in 2011 and is staggering its full implementation to insulate the City from the full impact of the increased charges on development. Weyburn $ 271,715.56 $ 263,734.27 $ 263,008.83 City of Weyburn recently adopted a land use based levy bylaw in June 2013. Estevan $ 232,279.00 $ 232,279.00 $ 232,279.00 Estevan recently adopted a uniform offsite levy rate. The City felt a uniform rate best suited the City's capacity to implement, track and update the rate. Warman $ 710.00 per front metre for single family and $5,000.00 per door for multi-family  Negotiated on a case by case basis within the servicing agreement  Negotiated on a case by case basis within the servicing agreement Increases are expected in their fees for several years and will most likely be a combination of an inflation factor, adjustments to increasing infrastructure costs and likely further increases to "catch-up" with the true costs of off-site development costs. Martensville $ 700.00 per front metre or $103,740.00 $ 51,870.00 $ 51,870.00 Martensville's levy structure is essentially a uniform levy excepting that they apply a frontage levy for single family developments. The City has established a uniform levy of $103,740.00 for all other land uses including multi-family developments but has reduced the uniform levy by 50% for commercial and industrial development as a means of incenting these forms of development. Swift Current $ 45,000.00 $ 45,000.00 $ 45,000.00 Swift Current employs a uniform levy rate based upon 2008 capital cost estimates. Saskatoon and Regina have developed unique and inherently more complicated systems of assessing development charges, making a direct comparison to the above noted communities very difficult to provide. In 2013, the City of Regina assessed a $ 241,900 per hectare fee with a 30% upfront payment due at the execution of the agreement signing with the balance of the charge payable in four additional installments over a 24 month period. The City of Saskatoon employs a land use specific variable fee by linear metre rate which changes depending upon a property's variance from a set average width and depth. In both of these instances, implementation and management of these types of development charges requires significant administrative capacity which would somewhat dilute the potential benefit to the City of Yorkton. COPY