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07 28 2009 Public Agenda1owraship of Proud Heritage, Exciting Future NOTICE OF PUBLIC MEETING On Tuesday July 28, 2009 the Council of the Corporation of the Township of Oro-Medonte will hold a public meeting, pursuant to Section 12 of the Development Charges Act, 1997, to present and obtain public input on the Township's proposed Development Charges By-law and underlying background study. All interested parties are invited to attend the Public Meeting of Council and any person who attends the meeting may make representations relating to the proposed by-law and background study. The meeting is to be held: Tuesday July 28, 2009 5:00 p.m. Township of Oro-Medonte Administration Centre Council Chambers 148 Line 7 South Oro, ON LOL 2X0 In order that sufficient information is made available to the public copies of the proposed by-law and the background study are being made available as of July 14, 2009 from the Township at the above location. Interested persons may express their comments at the Public Meeting or in writing, addressed to the Township Clerk, at the above address by July 27, 2009 J. Douglas Irwin, Clerk Township of Oro-Medonte (705) 487-2171 Fax (705) 487-0133 opK Watson & Associates TOWNSHIP OF ORO-MEDONTE ECONOMISTS LTD. 2009 DEVELOPMENT CHARGE BACKGROUND STUDY JULY 13, 2009 4304 Village Centre Court Mississauga, Ontario Canada L4Z 152 Phone: {905}272-3600 Pax: (905)272-3602 e-mail: nfo0watson-econ.ca 60 Planning for growth CONTENTS Page EXECUTIVE SUMMARY (i) 1. INTRODUCTION 1.1 Purpose of this Document 1-1 1.2 Summary of the Process 1-2 2. CURRENT TOWNSHIP OF ORO-MEDONTE POLICY 2.1 Schedule of Charges 2-1 2.2 Services Covered 2-1 2.3 Timing of DC Calculation and Payment 2-2 2.4 Indexing 2-2 2.5 Redevelopment Credit 2-2 2.6 Exemptions 2-2 3. ANTICIPATED DEVELOPMENT IN THE TOWNSHIP OF ORO- MEDONTE 3.1 Requirements of the Act 3-1 3.2 Basis of Population, Household and Non-Residential Gross Floor Area Forecast 3-1 3.3 Summary of Growth Forecast 3-2 4. THE APPROACH TO CALCULATION OF THE CHARGE 4.1 Introduction 4-1 4.2 Services Potentially Involved 4-1 4.3 Local Service Policy 4-1 4.4 Capital Forecast 4-5 4.5 Treatment of Credits 4-6 4.6 Eligible Debt and Committed Excess Capacity 4-6 4.7 Existing Reserve Funds 4-7 4.8 Deductions 4-8 4.8.1 Reduction Required by Level of Service Ceiling 4-8 4.8.2 Reduction for Uncommitted Excess Capacity 4-9 4.8.3 Reduction for Benefit to Existing Development 4-9 4.8.4 Reduction for Anticipated Grants, Subsidies and Other Contributions 4-10 4.8.5 The 10% Reduction 4-10 5. DEVELOPMENT CHARGE ELIGIBLE COST ANALYSIS BY SERVICE 5.1 Introduction 5-1 5.2 Service Levels and 10-Year Capital Costs for Township DC Calculation 5-1 5.2.1 Administration 5-1 5.2.2 Outdoor Recreation Services 5-4 5.2.3 Indoor Recreation Services 5-7 Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc CONTENTS 6. 7 8. Page 5.3 Service Levels and Twenty Year Capital Costs for Township DC Calculation 5-9 5.3.1 Roads and Related Services 5-9 5.3.2 Fire Protection Services 5-14 5.3.3 Police Services 5-18 DEVELOPMENT CHARGE CALCULATION 6-1 DEVELOPMENT CHARGE POLICY RECOMMENDATIONS AND DEVELOPMENT CHARGE BY-LAW RULES 7.1 Introduction 7-1 7.2 Development Charge By-Law Structure 7-2 7.3 Development Chare By-Law Rules 7-2 7.3.1 Payment in any Particular Case 7-2 7.3.2 Determination of the Amount of the Charge 7-3 7.3.3 Application to Redevelopment of Land (Demolition and Conversion) 7-3 7.3.4 Exemptions (full or partial) 7-4 7.3.5 Phasing in 7-4 7.3.6 Timing of Collection 7-5 7.3.7 Indexing 7-5 7.4 Other Development Charge By-Law Provisions 7-6 7.4.1 Categories of Services for Reserve Fund and Credit Purposes 7-6 7.4.2 By-law In-force Date 7-6 7.4.3 Minimum Interest Rate Paid on Refunds and Charges for Inter-Reserve Fund Borrowing 7-6 7.5 Other Recommendations 7-6 BY-LAW IMPLEMENTATION 8.1 Public Consultation Process 8-1 8.1.1 Introduction 8-1 8.1.2 Public Meeting of Council 8-1 8.1.3 Other Consultation Activity 8-1 8.2 Anticipated Impact of the Charge on Development 8-2 8.3 Implementation Requirements 8-3 8.3.1 Introduction 8-3 8.3.2 Notice of Passage 8-3 8.3.3 By-law Pamphlet 8-4 8.3.4 Appeals 8-4 8.3.5 Complaints 8-5 8.3.6 Credits 8-5 8.3.7 Front-Ending Agreements 8-5 8.3.8 Severance and Subdivision Agreement Conditions 8-6 Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc CONTENTS APPENDICES Paqe A BACKGROUND INFORMATION ON RESIDENTIAL AND NON-RESIDENTIAL GROWTH FORECAST A-1 B LEVEL OF SERVICE B-1 C LONG TERM CAPITAL AND OPERATING COST EXAMINATION C-1 D LOCAL SERVICE POLICY D-1 E PROPOSED DEVELOPMENT CHARGE BY-LAW E-1 F DEVELOPMENT CHARGE RESERVE FUND POLICY F-1 Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc EXECUTIVE SUMMARY Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc EXECUTIVE SUMMARY 1. The report provided herein represents the Development Charge Background Study for the Township of Oro-Medonte required by the Development Charges Act (DCA). This report has been prepared in accordance with the methodology required under the DCA. The contents include the following: • Chapter 1 - Overview of the legislative requirements of the Act; • Chapter 2 - Review of present DC policies of the Township; • Chapter 3 - Summary of the residential and non-residential growth forecasts for the Township; • Chapter 4 - Approach to calculating the Development Charge; • Chapter 5 - Review of historic service standards and identification of future capital requirements to service growth and related deductions and allocations; • Chapter 6 - Calculation of the development charges; • Chapter 7 - Development charge policy recommendations and rules; and • Chapter 8 - By-law implementation. 2. Development charges provide for the recovery of growth-related capital expenditures from new development. The Development Charges Act is the statutory basis to recover these charges. The methodology is detailed in Chapter 4. A simplified summary is provided below: 1) Identify amount, type and location of growth; 2) Identify servicing needs to accommodate growth; 3) Identify capital costs to provide services to meet the needs; 4) Deduct: • Grants, subsidies and other contributions; • Benefit to existing development; • Statutory 10% deduction (soft services); • Amounts in excess of 10 year historic service calculation; • DC Reserve Funds (where applicable); Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 5) Net costs then allocated between residential and non-residential benefit; 6) Net costs divided by growth to provide the DC charge. 3. The growth forecast (Chapter 3) on which the Municipal-wide development charge (outdoor recreation services, indoor recreation services and administration studies) is based projects the following population, housing and non-residential floor area for the ten year (2009-2019) period. The growth forecast on which the municipal-wide development charge (roads and related services, fire protection services and police services) is based on the following increases in population, housing units and non- residential floor area for the twenty year period (2009-2029). The 2009 Development Charge forecast provides for the following growth: Measure 10 Year 2009-2019 20 Year 2009-2029 (Net) Population Increase 1,990 5,128 Residential Unit Increase 955 2,305 Non-Residential Gross Floor Area Increase (ft2) 235,200 545,100 Source: Watson & Associates Economists Ltd. Forecast 2009 4. The Township's present By-law 2004-94, passed August 11th, 2004, came into force on the date of it's enactment and will expire on August 10th, 2009. The Township is undertaking a development charge public process and anticipates passing a new by-law in advance of the expiry date. The mandatory public meeting is set for July 28, 2009 with adoption of the by-law anticipated subsequently. 5. The municipal-wide development charge currently in effect is $5,035 for single detached dwelling units. By-law 2004-94 does not impose development charges for non- residential development. 6. This report has undertaken a recalculation of the charge based on future identified needs (presented in Schedule ES-1 for Residential and Non-Residential) and has been provided on a municipal-wide basis for services related to roads and related services, fire protection services, police services, outdoor recreation services, indoor recreation services and administration studies. The corresponding single-detached unit charge for the Municipal-wide services is $5,319. The calculated non-residential development charges for municipal-wide services is $3.19 per ft2 of gross floor area. Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 7 The Development Charges Act requires a summary to be provided relative to the gross capital costs and the net costs to be recovered over the life of the by-law. This calculation is provided by service and is presented in Tables 6-1 to 6-4. A summary of these costs is provided below: Total gross expenditures planned over the next five years $29,105,602 Less: Benefit to existing development $18,527,139 Post planning period benefit $ 3,279,263 Ineligible re: Level of Service $ - Mandatory 10% deduction for certain services $ 196,499 Grants, subsidies and other contributions $ - Net Costs to be recovered from development charges $ 7,102,702 8 Hence, $22 million (or an annual amount of $4.4 million) will need to be contributed from taxes and rates, or other sources. Based on the above capital listing, the Township plans to spend $29.1 million over the next five years of which $7.10 million (24%) is recoverable from development charges. Of this net amount, $6.12 million is recoverable from residential development and $.98 million from non-residential development. It is noted also that any exemptions or reductions in the charges would reduce this recovery further. Considerations by Council - The background study represents the service needs arising from residential and non-residential growth over the forecast periods. Municipal-wide services which include roads and related services, fire protection services and police services, are calculated based on a twenty year forecast. All other municipal-wide services, which include outdoor recreation services, indoor recreation services, and administration studies, are calculated based on a 10 year forecast. Council will consider the findings and recommendations provided for in the report and, in conjunction with public input, approve such policies and rates it deems appropriate. These directions will refine the draft DC by-law which is included in Appendix E. These decisions may include: • adopting the charges and policies recommended herein; • considering additional exemptions to the by-law; Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc (iv) • considering reductions in the charge by class of development (obtained by removing certain services on which the charge is based and/or by a general reduction in the charge); and • consider the timing of collection (i.e. whether some or all components shall be received at the time of building permit issuance or earlier). Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc (v) W W J m H N W a x U F - z W 2 CL O J W W 0 W O W J D W 2 U co J L 0 co O LO 19t O 0 N N M M a H 0 o N O O O O O M z W N 0 O ^ V L oa ~ Z N w O L Z N LO co ~ qqt co N I-- co CD co M I* to O I- LO co y Im N Q 7 0 O O N N LO r O r O 06 E ~ co Nt I* N N C O E O Q m m a am z W N co CN _ co co CD CO co (D co W w D I + LO LO O M ch ch m W 45- E N O E %0- co co co co co LO co O O LO - M T- 'a N q co co O N M N cc N y06o CO D N U N N V N y N U (n O U ~ v N N c O U c co w co N (n V) a) co o co c N U U Q' O) 0 J H co N o n L a) a' N O cn co a) U p o O c H ~ LL d 0 Q z a x N X O Q cO G U D a) C O O O J N N E O c O U W Eu U O Q 06 c O 1. INTRODUCTION Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 1-1 1. INTRODUCTION 1.1 Purpose of this Document This Background Study has been prepared pursuant to the requirements of the Development Charges Act, 1997 (s.10), and accordingly, recommends new development charges and policies for the Township of Oro-Medonte. The Township retained Watson & Associates Economists Ltd. (Watson) to undertake the Development Charges (DC) Background Study process in early 2009. Watson worked with senior staff of the Township in preparing this DC analysis and policy recommendations. This Development Charge Background Study, containing the proposed Development Charge By-law, will be distributed to members of the public in order to provide interested parties with sufficient background information on the legislation, the study's recommendations and an outline of the basis for these recommendations. This report has been prepared, in the first instance, to meet the statutory requirements applicable to the Township's Development Charge Background Study, as summarized in Chapter 4. It also addresses the requirement for "rules" (contained in Chapter 7) and the proposed by-law to be made available as part of the approval process (included as Appendix E). In addition, the report is designed to set out sufficient background on the legislation (Chapter 4), current Township DC policy (Chapter 2) and the policies underlying the proposed by-law, to make the exercise understandable to those who are involved. Finally, it addresses post-adoption implementation requirements (Chapter 8) which are critical to the successful application of the new policy. The Chapters in the report are supported by Appendices containing the data required to explain and substantiate the calculation of the charge. A full discussion of the statutory requirements for the preparation of a background study and calculation of a development charge is provided herein. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 1-2 1.2 Summary of the Process The Public Meeting required under section 12 of the Development Charges Act, 1997, has been scheduled for July 28, 2009 in the Township of Oro-Medonte Council Chambers. It's purpose is to present the study to the public and to solicit public input. The meeting is also being held to answer any questions regarding the study's purpose, methodology and the proposed modifications to the Township's development charges. In accordance with the legislation, the background study and proposed DC by-law will be available for public review on July 13, 2009. The process to be followed in finalizing the report and recommendations includes: consideration of responses received prior to, at or immediately following the Public Meeting; • finalization of the report and Council consideration of the by-law on subsequent to the public meeting. Figure 1-1 outlines the proposed schedule to be followed with respect to the development charge by-law adoption process. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 1-3 FIGURE 1-1 SCHEDULE OF KEY DEVELOPMENT CHARGE PROCESS DATES FOR THE TOWNSHIP OF ORO-MEDONTE 1. Data collection Early - 2009 2. Preparation of Draft Study July, 2009 3. Review of draft study with Staff July, 2009 4. Public Meeting Ad placed in newspaper(s) July 6, 2009 5. Presentation to Township Senior Staff and Council July 8, 2009 6. Background Study and proposed by-law available to public July 13, 2009 7. Public meeting of Council July 28, 2009 8. Deadline for comments and submissions from the public To be Determined 9. Council considers adoption of Background Study and passage of by-law Subsequent to public meeting 10. Newspaper notice given of by-law passage By 20 days after passage 11. Last day for by-law appeal 40 days after passage 12. Township makes available pamphlet (where by-law not appealed) By 60 days after in force date Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 2. CURRENT TOWNSHIP OF ORO-MEDONTE POLICY Watson & Associates Economists Ltd. H.IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 2-1 2. CURRENT TOWNSHIP OF ORO-MEDONTE POLICY 2.1 Schedule of Charges On August 11t", 2004, the Township of Oro-Medonte passed By-law 2004-94 under the Development Charges Act, 1997. The by-law came into force on upon passage and will expire on August 10, 2009. By-law 2004-94 imposes development charges on residential uses. Table 2-1 provides the rates currently in effect, as well as a breakdown of the charges by service. Table 2-1 Township of Oro-Medonte Development Charges Current Rates(Effective March 13, 2008) Single Service Detached Other Dwelling Dwelling Unit Transportation 3,499.79 2,961.35 Fire and Emergency 529.17 447.76 Recreation 868.53 734.91 Administration 137.46 116.31 Total 5,034.95 4,260.33 2.2 Services Covered The following are the Municipal-wide services covered under By-law 2004-94: • Transportation • Fire and Emergency • Recreation • Administration Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 2-2 2.3 Timing of DC Calculation and Payment Development charges imposed are payable prior to the issuance of a building permit or at the time of commencing development or redevelopment, whichever comes first. 2.4 Indexing By-law 2004-94 provided for the annual indexing of charges on the first day of January in each year, beginning January 1St, 2005, in accordance with the Statistics Canada Quarterly Construction Price Statistics, without amendment to the bylaw. 2.5 Redevelopment Credit No Development Charge is payable for the redevelopment of a dwelling unit that has been demolished, provided that a building permit for the redevelopment is issued within five (5) years from the date of the demolition permit. 2.6 Exemptions The following exemptions are provided under By-law 2004-94: (a) non-residential development (b) a Board of Education; and (c) any municipality or local board thereof. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 3. ANTICIPATED DEVELOPMENT IN THE TOWNSHIP OF ORO-MEDONTE Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 3-1 3. ANTICIPATED DEVELOPMENT 3.1 Requirements of the Act Chapter 4 provides the methodology for calculating a development charge as per the Development Charges Act, 1997. Figure 3-1 presents this methodology graphically. It is noted in the first box of the schematic that in order to determine the development charge that may be imposed, it is a requirement of Section 3.5 (1) of the Development Charges Act that "the anticipated amount, type and location of development, for which development charges can be imposed, must be estimated". The growth forecast contained in this Chapter (with supplemental tables in Appendix A) provides the anticipated development for which the Township of Oro-Medonte will be required to provide services for over a 5-year (mid 2009-mid 2014), 10-year (mid 2009-mid 2019), 20-year (mid 2009-mid 2029) and buildout time horizon. 3.2 Basis of Population, Household and Non-Residential Gross Floor Area Forecast In compiling the growth forecast for the Township of Oro-Medonte, the following reports were consulted: • Township of Oro-Medonte Development Charges Background Study, Meridian Planning Consultants Inc., June 2004; • Township of Oro-Medonte Official Plan, January 2007; • Simcoe Area Growth Plan, Hemson Consulting Ltd., 2008; and • Simcoe Area: A Strategic Vision for Growth, Ontario Government, June, 2009. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 3-2 In addition to reviewing the above-mentioned documents, the following key indicators were also considered in generating the population, household and non-residential growth forecast: • 1996, 2001 and 2006 Census data; • historical residential building permits over the past 10-years; • proposed residential units in the development approvals process by dwelling type and location; • historical non-residential building permit values over the past 10-years; and • 1996, 2001 and 2006 Census employment data. 3.3 Summary of Growth Forecast A detailed analysis of the residential and non-residential growth forecasts is provided in Appendix A, and the methodology employed is illustrated in Figure 3-1. The discussion provided herein summarizes the anticipated growth for the Township and describes the basis for the forecast. The results of the growth forecast analysis are summarized in Table 3-1 and Schedule 1. As identified in Table 3-1 and Schedule 1, the population is anticipated to reach 22,273 by 2019, 25,411 by 2029 and 28,182 at buildout, resulting in an increase of 7,899 persons from mid 2009 to buildout'. 1. Unit Mix (Appendix A - Schedules 2 through 6) • The unit mix for the Township was derived from historical development activity (as per Schedule 7, Appendix A), the previous Township of Oro-Medonte Development Charge Study, as well as discussions with staff regarding anticipated development trends for the Township. • Based on the above indicators, the buildout household growth forecast consists of a unit mix of 100% low density (single family and semi-detached) dwellings. ' The population figures used in the calculation of the 2009 Development Charges exclude the net Census Undercount, which is estimated at approximately 4%. Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 3-3 2. Geographic Location, Appendix A - Schedule 2 and 6 • Schedule 2 summarizes the anticipated amount, type and location of development for Oro-Medonte by serviced area (water & sewer, water only) and rural area. Schedule 6 summarizes developable housing supply for Oro-Medonte by stage of development and location. In accordance with available supply and anticipated demand, housing and population growth has been allocated to the following areas over the buildout forecast period: Serviced (Water & Sewer) - An increase of 980 municipally serviced housing units is forecast within the Water & Sewer access area on currently designated residential lands. Forecast residential development allocated to this area represents 27.9% of housing growth allocated to the Township of Oro-Medonte from 2009 to buildout. Serviced (Water Only) - An increase of 946 municipally serviced housing units is forecast within the Water Only access area on currently designated residential lands. Forecast residential development allocated to this area represents 27% of housing growth allocated to the Township of Oro-Medonte from 2009 to buildout. Rural Area - An increase of 1,584 housing units has been forecast for the rural area from 2009 to buildout. Annual demand for new housing within this area is anticipated to be approximately 53 units per year, or 45.1% of the total housing forecast. Forecast housing growth in the rural area has been based on historical building permit activity over the past five years as well as discussions with the Township of Oro-Medonte Planning Department regarding future rural growth prospects. 3. Planning Period • Both short and longer-term time horizons (5-year, 10-year, 20-year and buildout) are required for the DC process. The DCA limits the planning horizon for certain services such as parks, recreation and libraries to a 10-year planning horizon. Roads, water and wastewater services utilize a longer planning period. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 3-4 FIGURE 3-1 MARKET- BASED POPULATION AND HOUSEHOLD PROJECTION MODEL Historical Housing Construction Forecast of Residential Units Employment Market by Local Municipality, Economic Outlook Local,. County and Provincial SUPPLY Residential Units in the Development Process Occupancy Assumptions Gross Population Increase Decline in Existing Population Net Population Increase Intensification Designated Lands Servicing Capacity Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc LO c~ LU H N Z F- 0 r ~ W R LL 0 m LL F- 0 a O x~ Z J O Z 0 Fn LU w N OO I- T ° ~ (D Lc) LQ C ~ N N N N N N N . N N O _ ~ C N LD N LD ~ 0 N 0 ~ 0 CO I~ 0 V N 0 N 0 O 0 O 0 O 0 ~ 0 ~ 0 M 0 O 0 ~ O CO C' L( OO V 00 O 0 I- M O 0 M 0 LD 0 I- r- r- M M M N M (6 O H O LO 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 r LO ~ LO LO LO LO LO LO LO IT r O r i N 0 O O LO LO LO LO LO LO LO O 0 0 0 0 0 0 0 (n ( C E N D 0 O t 0-0) Q _ O O LO O O O O O O O 0 0 O O O O O O tf LO CN co co co co co co co N. : N c N 0 0 Z3 0 LO LO L(7 (O (O O O (O O O O _ M I- N N 0 O 0 N - 0 - N M M 0 LO 1- I- O 4T O O M O M co O M E L6 CO I~ ~ r-~ 00 00 O O r N M N ~ C CO 0 N a) ~ O ~ J C~ 00 LO - M O M (D N I~ c0 N c0 O I~ 00 C) O - M M I- r- 0 M Ln 00 O N O CO cl O N 00 N O V - (O I~ N 10 0) co ~ co ~C CO 00 O O O N CO LD 00 ~ ~ A M L 1-: .2 N N N N N N N 7 Q- 0 (o 0) 0 co 0 rn 0 rr rn rr N 0) N o O to O rn O 4T rn 4T N rn N 0 0) 0 N 0 N 0 N 0 N 0 N 0 N 0 N 0 N 0 N 0 N 0 N 0 N 0 N 0 N (O ~ r O (O O O O O O O O O O O O r N N N N N N N O O O N N O O _ O N J N !n ~ !n ~ O N O E O E LLI (n > O O (6 0 'U O O !n Q 0 O 06 - C O O N ~ O o o Co > LO M ~p LO M 01- ~ ~ M O c~ c9 M o cl s M 14 a LO ~ 01 M Cn c,° c~ M Ol cu M ! N M c~ 040 Q cu LO M ~ rn O U L 0 cn 0 Q U W M °c~ ~ ! I 0 N LL M °1- L9 l o M 0 0 g, s! z o `er LL 0 _ 0 lo , o Q r g ~ o ' J W c N O 01 , 0 O 000 C, (1) O~ U L O In 'O 0 D) 00 c90 Oc, 1 LO 'n s 0 0 0 °o O M ° c~ t c~ o ~ 00 00° c~ M V 0 O L N 00 O 00 O O O Lo LO N sliLF 6uisnoH a~ J N N ' E (6 O C O N U W N N N N ~ (6 U) U O O N Q N N Q 0 N ~ N O U N O O O i 3 0 U O a 0 m W 0 0 N N O a O 0 3-7 4. Population in New Units (Appendix A - Schedules 2 through 5) • The number of housing units to be constructed in Oro-Medonte during the short, medium and long term period is presented on Schedule 1 (an average of approximately 117 housing units per annum from 2009 to buildout). • Population in new units are derived from Schedules 2 through 5, which incorporate historical development activity, anticipated units (see unit mix discussion), and 1996, 2001 and 2006 Census data. • Schedule 8a summarizes the PPU for the new low density housing units by age and type of dwelling based on a 2006 custom census data. The total calculated PPU for has been adjusted to account for the downward PPU trend which has been recently experienced in both new and older units, largely due to the aging of the population. For the low density dwelling type the adjusted 20-year average PPU is: • Low-density: 2.93 • Due to limited data availability, the Upper Tier (Simcoe County) PPU for medium and high density PPU were used. Schedule 8b summarizes the PPU for the new medium and high density housing units by age and type of dwelling based on 2006 custom census data. The total calculated PPU for medium density has been adjusted to account for the downward PPU trend which has been recently experienced in both new and older units, largely due to the aging of the population. For medium and high density dwelling type the adjusted 20-year average PPU is: • Medium-density: 2.45 • High-density: 1.64 5. Existing Units and Population Change (Appendix A - Schedules 2 through 6) • Existing households for mid 2009 are based on the 2006 Census households plus estimated residential units constructed between mid 2006 and mid 2009 assuming a six month lag between construction and occupancy (see Schedule 7). Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 3-8 • The decline in average occupancy levels for existing housing units are calculated in Schedules 2 through 6, by aging the existing population over the forecast period. 6. Employment (Appendix A, Schedule 10, 11, 12) • Employment projections are largely based on the activity rate method, which is defined as the number of jobs in the municipality divided by the number of residents. Key employment sectors include primary, industrial, commercial/population related, institutional, and work at home, which are considered individually below. • 1996, 2001 and 2006 employment data (place of work) for the Township are outlined in Schedule 10. 2006 employment is comprised of the following sectors: • 70 primary (1.8%); • 1,260 work at home employment (31.8%); • 1,018 industrial (25.7%); • 1,258 population related or commercial (31.7%); and • 360 institutional (9.1 • This provides a total employment figure (excluding No Fixed Place of Work) of 3,965 based on the 2006 Census. Additional details regarding historical employment trends by sub-sector are summarized in Schedule 12. • Total employment for the Township (excluding No Fixed Place of Work) is anticipated to reach approximately 4,431 by mid 2019, 5,041 by mid 2029 and 5,776 by buildout. This represents an employment increase of 1,761 from 2009 to buildout. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 3-9 7. Non-Residential Sq. Ft. Estimates (Gross Floor Area (GFA), Appendix A, Schedule 10) • Square footage estimates were calculated in Schedule 10 based on the following employee density assumptions: • 1,500 sq. ft. per employee for industrial; • 400 sq. ft. per employee for commercial; and • 700 sq. ft. per employee for institutional employment. • The forecast incremental Gross Floor Area (GFA) increase for the municipality is 235,200 over the 10-year projection period, 545,100 over the 20-year period and 939,700 sq. ft. from 2009 to buildout. • The incremental GFA forecast by sector from 2009 to buildout is as follows: • Industrial: 58.4% • Commercial/population related: 31.1%; and • Institutional 10.5%. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 4. THE APPROACH TO CALCULATION OF THE CHARGE Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 4-1 4. THE APPROACH TO CALCULATION OF THE CHARGE 4.1 Introduction This chapter addresses the requirements of s.s.5 (1) of the DCA, 1997 with respect to the establishment of the need for service which underpins the development charge calculation. These requirements are illustrated schematically in Figure 4-1. 4.2 Services Potentially Involved Table 4-1 lists the full range of municipal service categories which are provided within the Township. A number of these services are defined in s.s.2 (4) of the DCA, 1997 as being ineligible for inclusion in development charges. These are shown as "ineligible" on Table 4-1. In addition, two ineligible costs defined in s.s.5 (3) of the DCA are "computer equipment" and "rolling stock with an estimated useful life of (less than) seven years...". In addition, local roads are covered separately under subdivision agreements and related means (as are other local services). Services which are potentially eligible for inclusion in the Township development charge are indicated with a "Yes." 4.3 Local Service Policy The development charge calculation commences with an estimate of "the increase in the need for service attributable to the anticipated development," for each service to be covered by the by-law. There must be some form of link or attribution between the anticipated development and the estimated increase in the need for service. While the need could conceivably be expressed generally in terms of units of capacity, s.s.5(1)3, which requires that Municipal Council indicate that it intends to ensure that such an increase in need will be met, suggests that a project-specific expression of need would be most appropriate. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 4-2 Tax Base, User Rates, Etc Figure 4-1 The Process of Calculating A Development Charge Under the DCA,1997 Anticipated Development 1.3 Ineligible Services Estimated Increase in Need For Service Subdivision Agreements and Consent Provisions 1.8 Specified Local Services DC Needs By Service Ceiling Re: Increased Need 1.5 Needs That Will Be Met 1.6 A Examination of the Long Term Capital and Operating Costs For Capital Infrastructure 1.7 0) Less: o Uncommitted Excess Capacity Ain Less: Benefit To Existing Devpt. Less: Grants, Subsidies and Other Contributions Less: 10% Where Applicable DC Net Capital Costs Costs for new development vs. existing development for the term of the by-law and the balance of the period 1.14 Investment Considerations Amount of the Charge By Type of Development (including apportionment of costs - residential and non-residential) 1.17 DC By-law(s) Spatial Applicability Consideration of exemptions, phase-ins, etc. Watson & Associates Economists Ltd. H10ro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 4-3 TABLE 4-1 CATEGORIES OF MUNICIPAL SERVICES TO BE ADDRESSED AS PART OF THE CALCULATION ELIGIBILITY FOR MAXIMUM CATEGORIES OF INCLUSION IN POTENTIAL MUNICIPAL SERVICES THE DC SERVICE COMPONENTS DC CALCULATION RECOVERY % (see legend below) Yes -Municipality provides the Service - service has been included in the DC No - Municipality provides the Service - service has not been included in the DC n/a - Municipality does not provide the service Ineligible - Service is ineligible for inclusion in the DC calculation Yes 1.1 Arterial roads 100 1. Services Related to a Yes 1.2 Collector roads 100 Highway Yes 1.3 Area municipal roads 0 Yes 1.4 Traffic signals 100 Yes 1.5 Sidewalks and streetlights 100 n/a 2.1 Transit vehicles 90 n/a 2.2 Other transit infrastructure 90 n/a 2.3 Municipal parking spaces - indoor 90 2. Other Transportation No 2.4 Municipal parking spaces - outdoor 90 Services Yes 2.5 Works Yards 100 Yes 2.6 Rolling stock' 100 n/a 2.7 Ferries 90 nNo 2.8 Airport facilities 90 no 3.1 Main channels and drainage trunks 100 3. Storm Water Drainage no 3.2 Channel connections 100 and Control Services no 3.3 Retention/detention ponds 100 Yes 4.1 Fire stations 100 4. Fire Protection Services Yes 4.2 Fire pumpers, aerials and rescue vehicles 100 Yes 4.3 Small equipment and gear 100 Ineligible 5.1 Acquisition of land for parks, woodlots and ESAs 0 5. Outdoor Recreation Yes 5.2 Development of area municipal parks 90 Services (i.e. Parks and Yes 5.3 Development of district parks 90 n/a 5.4 Development of Region-wide parks 90 Open Space) Yes 5.5 Development of special purpose parks 90 Yes 5.6 Parks rolling stock' and yards 90 6. Indoor Recreation Yes 6.1 Arenas, indoor pools, fitness facilities, community 90 Services centres, etc. (including land) Yes 6.2 Recreation vehicles and equipment' 90 7. Library Services n/a 7.1 Public library space (incl. furniture and equipment) 90 n/a 7.2 Library materials 90 8. Electrical Power Ineligible 8.1 Electrical substations 0 Ineligible 8.2 Electrical distribution system 0 Services Ineligible 8.3 Electrical system rolling stock' 0 with 7+ year life time same percentage as service component to which it pertains computer equipment excluded throughout Watson & Associates Economists Ltd. H10ro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 4-4 ELIGIBILITY FOR MAXIMUM CATEGORIES OF INCLUSION IN POTENTIAL MUNICIPAL SERVICES THE DC SERVICE COMPONENTS DC CALCULATION RECOVERY % (see legend below) Yes -Municipality provides the Service - service has been included in the DC No - Municipality provides the S ervice - service has not been included in the DC n/a - Municipa lity does not provide the service Ineligible - Service is ineligible for inclusion in the DC calculation 9. Provision of Cultural, Ineligible 9.1 Cultural space (e.g. art galleries, museums and 0 Entertainment and theatres) Tourism Facilities and Ineligible 9.2 Tourism facilities and convention centres 0 Convention Centres No 10.1 Treatment plants 100 No 10.2 Sewage trunks 100 10. Waste Water Services No 10.3 Local systems 0 No 10.4 Vehicles and equipment 100 No 11.1 Treatment plants 100 11. Water Supply Services No 11.2 Distribution systems 100 No 11.3 Local systems 0 Ineligible 12.1 Collection, transfer vehicles and equipment 0 12. Waste Management Ineligible 12.2 Landfills and other disposal facilities 0 Services Ineligible 12.3 Other waste diversion facilities 0 Yes 13.1 Police detachments 100 13. Police Services n/a 13.2 Police rolling stock' 100 n/a 13.3 Small equipment and gear 100 14. Homes for the Aged n/a 14.1 Homes for the aged space 90 15. Day Care n/a 15.1 Day care space 90 16. Health n/a 16.1 Health department space 90 17. Social Services n/a 17.1 Social service space 90 n/a 18.1 Ambulance station space 90 18. Ambulance n/a 18.2 Vehicles' 90 19. Hospital Provision Ineligible 19.1 Hospital capital contributions 20. Provision of Headquarters for the Ineligible 20.1 Office space (all services) 0 General Administration Ineligible 20.2 Office furniture 0 of Municipalities and Ineligible 20.3 Computer equipment 0 Area Municipal Boards Yes 21.1 Studies in connection with acquiring buildings, 0-100 rolling stock, materials and equipment, and improving land2 and facilities, including the DC 21. Other Services background study cost 21.2 Interest on money borrowed to pay for growth- n/a related capital 0-100 with a 7+ year life time 2same percentage as service component to which it pertains Watson & Associates Economists Ltd. H10ro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 4-5 Some of the need for services generated by additional development consists of local services related to a plan of subdivision. As such, they will be required as a condition of subdivision agreements or consent conditions. 4.4 Capital Forecast Paragraph 7 of s.s.5(1) of the DCA requires that "the capital costs necessary to provide the increased services must be estimated." The Act goes on to require two potential cost reductions and the Regulation sets out the way in which such costs are to be presented. These requirements are outlined below. These estimates involve capital costing of the increased services discussed above. This entails costing actual projects or the provision of service units, depending on how each service has been addressed. The capital costs include: a) costs to acquire land or an interest therein (including a leasehold interest); b) costs to improve land; C) costs to acquire, lease, construct or improve buildings and structures; d) costs to acquire, lease or improve facilities including rolling stock (with useful life of 7 or more years), furniture and equipment (other than computer equipment), materials acquired for library circulation, reference or information purposes; e) interest on money borrowed to pay for the above-referenced costs; f) costs to undertake studies in connection with the above-referenced matters; and g) costs of the development charge background study. In order for an increase in need for service to be included in the DC calculation, Municipal Council must indicate "...that it intends to ensure that such an increase in need will be met" (s.s.5 (1)3). This can be done if the increase in service forms part of a Council-approved Official Plan, capital forecast or similar expression of the intention of Council (O.Reg. 82/98 s.3). The capital program contained herein reflects the Township's approved and proposed capital budgets and master servicing/ needs studies. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 4-6 4.5 Treatment of Credits Section 8 para. 5 of O.Reg. 82/98 indicates that a development charge background study must set out, "The estimated value of credits that are being carried forward relating to the service." s.s.17 para. 4 of the same Regulation indicates that, "...The value of the credit cannot be recovered from future development charges," if the credit pertains to an ineligible service. This implies that a credit for eligible services can be recovered from future development charges. As a result, this provision should be made in the calculation, in order to avoid a funding shortfall with respect to future service needs. It is understood that the Township does not have any outstanding DC credit obligations that would affect the development charge calculation. 4.6 Eligible Debt and Committed Excess Capacity Section 66 of the DCA, 1997 states that for the purposes of developing a development charge by-law, a debt incurred with respect to an eligible service may be included as a capital cost, subject to any limitations or reductions in the Act. Similarly, s.18 of O.Reg. 82/98 indicates that debt with respect to an ineligible service may be included as a capital cost, subject to several restrictions. In order for such costs to be eligible, two conditions must apply. First, they must have funded excess capacity which is able to meet service needs attributable to the anticipated development. Second, the excess capacity must be "committed," that is, either before or at the time it was created, Township Council must have expressed a clear intention that it would be paid for by development charges or other similar charges. For example, this may have been done as part of previous development charge processes. It is noted that no projects have been debentured to date and to which the principal and interest costs need to be included within the capital detail sheets. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 4-7 4.7 Existing Reserve Funds Section 35 of the DCA states that: "The money in a reserve fund established for a service may be spent only for capital costs determined under paragraphs 2 to 8 of subsection 5(1)." There is no explicit requirement under the DCA calculation method set out in s.s.5(1) to net the outstanding reserve fund balance as part of making the DC calculation; however, s.35 does restrict the way in which the funds are used in future. For services which are subject to a per capita-based, service level "cap," the reserve fund balance should be applied against the development-related costs for which the charge was imposed, once the project is constructed (i.e. the needs of recent growth). This cost component is distinct from the development-related costs for the next 10 year period, which underlie the DC calculation herein. The alternative would involve the municipality spending all reserve fund monies prior to renewing each by-law, which would not be a sound basis for capital budgeting. Thus, the Township will use these reserve funds for the Township's cost share of applicable development- related projects, which are required but have not yet been undertaken, as a way of directing the funds to the benefit of the development which contributed them (rather than to future development, which will generate the need for additional facilities directly proportionate to future growth). The Township's Development Charge Reserve Fund Balance by service at December 31, 2008 is shown below: Service Tota Is Transportation $ (28,764.05) Fire and Emergency $ 90,773.05 Recreation $457,751.76 Administration $ (20,717.04) Tota 1 $499,043.72 Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 4-8 4.8 Deductions The DCA, 1997 potentially requires that five deductions be made to the increase in the need for service. These relate to: The level of service ceiling; • Uncommitted excess capacity; Benefit to existing development; Anticipated grants, subsidies and other contributions; and 10% reduction for certain services. The requirements behind each of these reductions are addressed as follows: 4.8.1 Reduction Required by Level of Service Ceiling This is designed to ensure that the increase in need included in 4.2 does "...not include an increase that would result in the level of service (for the additional development increment) exceeding the average level of the service provided in the municipality over the 10-year period immediately preceding the preparation of the background study...". O.Reg 82.98 (s.4) goes further to indicate that both the quantity and quality of a service shall be taken into account in determining the level of service and the average level of service". In many cases, this can be done by establishing a quantity measure in terms of units as floor area, land area or road length per capita and a quality measure, in terms of the average cost of providing such units based on replacement costs, engineering standards or recognized performance measurement systems, depending on circumstances. When the quantity and quality factor are multiplied together, they produce a measure of the level of service, which meets the requirements of the Act, i.e. cost per unit. The average service level calculation sheets for each service component in the DC calculation are set out in Appendix B. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 4-9 4.8.2 Reduction for Uncommitted Excess Capacity Paragraph 5 of s.s.5(1) requires a deduction from the increase in the need for service attributable to the anticipated development that can be met using the Township's "excess capacity", other than excess capacity which is "committed" (discussed above in 4.6). "Excess capacity" is undefined, but in this case must be able to meet some or all of the increase in need for service, in order to potentially represent a deduction. The deduction of uncommitted excess capacity from the future increase in the need for service, would normally occur as part of the conceptual planning and feasibility work associated with justifying and sizing new facilities, e.g. if a road widening to accommodate increase traffic is not required because sufficient excess capacity is already available, then widening would not be included as an increase in need, in the first instance. 4.8.3 Reduction for Benefit to Existing Development This step involves a further reduction to the need, by the extent to which such an increase in service would benefit existing development. The level of services cap in 4.4 is related, but is not the identical requirement. Sanitary, storm and water trunks are highly localized to growth areas and can be more readily allocated in this regard than other services such as roads which do not have a fixed service area. Where existing development has an adequate service level, which will not be tangibly increased by an increase in service, no benefit would appear to be involved. For example, where expanding existing library facilities simply replicates what existing residents are receiving, they receive very limited (or no) benefit as a result. On the other hand, where a clear existing service problem is to be remedied, a deduction should be made, accordingly. In the case of services such as recreation facilities, community parks, libraries, etc., the service is typically provided on a municipal-wide system basis. For example, facilities of the same type may provide different services (i.e. leisure pool vs. competitive pool), different programs (i.e. hockey vs. figure skating) and different time availability for the same service (i.e. leisure skating available on Wednesday in one arena and Thursday in another). As a result, residents will travel to different facilities to access the services they want at the times they wish to use them, and facility location generally does not correlate directly with residence location. Even where it Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 4-10 does, displacing users from an existing facility to a new facility frees up capacity for use by others and generally results in only a very limited benefit to existing development. Further, where an increase in demand is not met for a number of years, a negative service impact to existing development is involved for a portion of the planning period. 4.8.4 Reduction for Anticipated Grants, Subsidies and Other Contributions This step involves reducing the capital costs necessary to provide the increased services by capital grants, subsidies and other contributions made or anticipated by Council and in accordance with various rules such as the attribution between the share related to new vs. existing development. (i.e. Some grants and contributions may not specifically be applicable to growth, such as the COMRIF Grant program or where Council targets fundraising as a measure to offset impacts on taxes.) O.Reg 82.98 .s.6. 4.8.5 The 10% Reduction Paragraph 8 of s.s.(1) of the DCA requires that, "the capital costs must be reduced by 10 percent." This paragraph does not apply to water supply services, waste water services, storm water drainage and control services, services related to a highway, police and fire protection services. The primary services that the 10% reduction does apply to include services such as parks, recreation, libraries, childcare/social services, Provincial Offences Act, ambulance, homes for the aged, health and transit. The 10% is to be netted from the capital costs necessary to provide the increased services, once the other deductions have been made, as per the infrastructure costs sheets in Chapter 5. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 5. DEVELOPMENT CHARGE ELIGIBLE COST ANALYSIS BY SERVICE Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 5-1 5. DEVELOPMENT CHARGE ELIGIBLE COST ANALYSIS BY SERVICE 5.1 Introduction This chapter outlines the basis for calculating development charge eligible costs for the development charges to be applied on a uniform basis. In each case, the required calculation process set out in s.5(1) paragraphs 2 to 8 in the DCA, 1997, and described in Chapter 4, was followed in determining DC eligible costs. The nature of the capital projects and timing identified in the Chapter reflects Council's current intention. However, over time, municipal projects and Council priorities change and accordingly, Council's intentions may alter, and different capital projects (and timing) may be required to meet the need for services required by new growth. 5.2 Service Levels and 10-Year Capital Costs for DC Calculation This section evaluates the development-related capital requirements for all of the "softer' services over a ten-year planning period. Each service component is evaluated on two format sheets: the average historical ten-year level of service calculation (see Appendix B), which "caps" the DC amounts; and the infrastructure cost calculation, which determines the potential DC recoverable cost. 5.2.1 Administration The DCA permits the inclusion of studies undertaken to facilitate completion of the Township's capital works program. The Township has made provision for the inclusion of new studies undertaken to facilitate this DC process, as well as other studies which benefit growth (in whole or part). Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 5-2 The listing of studies included in the DC is as follows: • Bridge Needs Study • Craighurst Secondary Plan • Development Charge Study (2) • Engineering Standards Update • Fire Master Plan Upgrade • Official Plan Review Update • Parkland Inventory Review • Roads Need Study • Speed Study • Strategic Facility Plan - Phase 2 • Township Drainage Study • Trails Master Plan The cost of these studies is $324,629 of which $87,000 is existing benefit. The Administration Development Charge Reserve Fund was in a deficit balance at December 31, 2008, in the amount of $20,717 and this amount has been added to the capital cost listing for a total capital cost of $345,346. The net growth-related capital cost is $258,346 (before 10% deduction) and has been allocated 83% residential and 17% non-residential based on the incremental growth in population to employment, for the ten year forecast period. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc N 0 a O C 0 O 0 a p o o w O O Q Q r N U 0 a) U) M C\l 4 - N C o r M r M N I~ (O r N o a L (n U) Z U o ~ ~ r r r o0 > a3 00 00 M > 00 00 C\ N M O U a) o c c oo o o a r Cl) U ~ O O O O a) O O 00 O O 00 O O O O l0 N O a (4 F- °O °O O .0 N ° O O fq ~ U O N N J L ~ ~ a) O O O O O O O O -Fz O O O l0 0 O N O N O N ) 4 p a a C 0 N ~ (4 3 fl- z (7~0 C~ > O ` ) w U) U Q J C O N O O r N f/) O a) X O l1J m N O 04 04 N O N N_ 00 N N O Ci M Lo N O O 00 (O V! ~ Imo N 0) N r- N N N co M l0 (O (O N o0 m V O w 00 M r- 00 r- r- C IL (O In LO M V M V (O V Cl) LO 02 Cl) 00 V In (O 00 M r, O O N M C;) V Cl) In N N N In O I~ V 00 (O N N Cl) N L6 V7~ 00 r, r N 0 0 LO O'O O o 0 0 m 0 O N N O O O O N N I~ V r- O O O N r (O r M l0 O (O N O N r o0 (O O M It N N o 0:0 o'. N O N N' M O O O O O O O O O d) r 0 0 In O O O O O In N l0 O N l0 O O O l0 r- (O r r- (O r- In O N r- 00 (O O Cl) It N N 0 0 0 0 0 0 0 0 0 0 0.0 O O O O O O O O O O O O O O 0) N I~ w O- 0 0 0 0 0 0 0. 0 0 0 O O 00 l0 O O O O O O O O O O O LO (O (O r O M In (4 0 U ~ N N N N (O N N N Cl) Z w o L U O a 0 0 a ~ w. o 0 00 a o O 0 O 0 o 0 0.0 0 0 0:0 O O O O O O O O O O O O O O 0) N w 'Q 0 0 0 0 0 O O O O O O O O (O r M (4 U j 0 N 0 N 0 0.0 LO In 00 N O O O O (O O N N (O N O N LO q N l1J Cl) O 0 (7 U M p d) V d) r d) d) N d),. O 0) co V O 01 (4 O O O 00. O O O N O a) 0 0 0 00 O O'..0 O O O O O N N N N N N N N N N N O N O N O a) (4 o C\l o 0 C 0 w o 0) a) o > o a) > U > -0 U a) a m s • > a) a.. Q a CL a o co a Q , a c a) o N a o ) a ) ~ Q a N o C\l ) 0- o- U L U L U m p w - (n = ) d N (4 C (n > a) 0 U Q - -0 _ U) ' Q o 0 a 0 Z5 a 0 . > w - 0 0) 6 -NO ° m ) - m ~ Q o Q o m a) z° w~ m; d cn a m', o Q L N o z o a m w L a) Z U C > > > h a) a. C1.16 . w Y , ~ o N C -0 ~ (4 o 0 R O a) L 0 M U) N a H ~ U) C w 0 H m U 0. 0 z N M V l0 (O r o0 d) O N M a O r r O C\l O 00 0 O z 5-3 N X r Q O U 0 O N 0 O a w E 0 U w 0 m 0 Q 9 5-4 5.2.2 Outdoor Recreation Services The Township presently has inventory of 199.8 acres of development parkland. The current value of this developed parkland is approximately $3.5 million. These parks include 41 amenities (baseball diamonds, docks, multi-purpose sports courts, outdoor fitness equipment, pavilions, playgrounds, soccer pitches and tennis courts). The current value of these amenities is approximately $3.2 million. The Township also provides 29,000 linear metres of trails, with an approximate value of $2.4 million. In terms of the service level over the last 10 years for outdoor recreation services, the combined value of the existing assets (parkland, amenities and trails) translates into approximately $393. per capita. Over the next 10 years, the Township has identified the need for 4th Line Park improvements, 9th Line boat launch and Guthrie Sports Field development. The total gross cost of these works is estimated to be approximately $3.45 million. A post period benefit of $2.45 million has been allocated, with existing benefit of $218,079 (which includes the parks reserve balance of $214,079). The net growth-related capital cost is $781,358 (before 10% deduction) The Township currently has four vehicles in the Outdoor Recreation inventory. The value of those vehicles is approximately $190,000 and provides a service standard of approximately $10 per capita. The Township has identified the need for a 1-ton truck with front mount plow in 2011 at a cost of $55,000. A post period benefit of $35,200 has been allocated on that capital cost. For Outdoor Recreation, the residential and non-residential cost allocation has been identified as 95% and 5% respectively. The 5% non-residential share has been attributed to recognize the service is made available to businesses in the community. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc H U) co q C N E N O- O O N N Q o -O O m Y O CLa r N U 0 a) O O (4 0 - 0 0 - w oc m O V 00 00 oc O r- N C) N (4 o M M O Z LO co U O V In W M In N N N V (o r-M r- > 00 N o Cl) M (O d) O) C\[ N W Q M N '0 L 0 r M O W w U r U ) o LO o rn o rn coo (NO ° oo o m ri I- o co I c o d r N I- r H ~ O O l0 N o O rn o (o 0 O ° V (o M oc . M U N O 00 N (o N ~ ~ J L ~ ~ a 00 O O O O 0 N O O O co O w O (o l0 01 I- O 0 V (O M o0 ( V co N ~ • (o o ~ L U) 00 N a a O L m 3 N p a L-0 O c7 ~ 0 ~ .2 > O w U) U Q J O 0) O O O O O E V V O_ N w O N O X O W m N O O O 00.0 O O LO C \I O co O (0 : LQ CL (4 N - (0 CO Cl) N - Cl) co (O U U o0 Z w ~ .o L U O a Cl) N (~O v m v 00 U) M r N 00 Cl) a o O M o 0 M 0 r C (M l0 In M r (O (O Cl) d C , LO 'It. N C 4 NO m N N a m° O O O O O 0 o 0 = m 0 O 0 O 0 O 0 O o C .E 00 O O O 00 LO o (0 0 Cl) iO U w Cl) . O W N l l O N C ) C ) O (7 0 O O ~ O M E a) 0 N 0 N 0 N 0 0 N; N O 0 N ~ ~ I I N N (4 3 0 O O Z 5-5 X r W' O U 0 a 0 O a J N N E O 0 U W N N (4 0 N Q O w 9 E W a N ~ C ~ O w a o N U L O N O Y ~a L N w U 3 a) 0 U) 00 _ a) o O n O Z w U) U m N >O U N N o rn N 01 (O m N f0 o d' a r ~ U) U ~ 0 O C\l cc~ o o m ~ a o H a o .4 00 rn 00 m w ° ~ U O r (4 O O cc O N ~ O N N C N N 3 Q O w 0 U) U Q J C O N w C E N w 0 W > m O O _ CL N 01 O,i m O U U 0 Z w L U O a 0 O N C M M d C O m a m ° m O Q m LO in U w in wW w w. 0 0 (7 U cm ON H Z~ 0 w Q o w a) > o O N O N Z o) 0 U 00 LL m N Q L N U) U N Q Y U (4 ~ d U O _ R 5 H ' o F 0 Z a 5-6 r Q N U 0 a 0 O a w E O 0 W N U N Q 0 w 9 5-7 5.2.3 Indoor Recreation Services The Township presently has 47,354 square feet of facility space which includes ten community halls. The approximate value of this facility space is $11 million. In terms of the service level over the last 10 years for indoor recreation services, the value of the existing assets translates into approximately $577 per capita. Over the next 10 years, the Township has identified the need for three community centres (Oro- Medonte, Craighurst and Moonstone) as well as future recreation space, so a provision has been included. The total gross cost of these works is estimated to be approximately $11.2 million. A post period benefit of $0.8 million has been allocated. The net growth-related capital cost is $1.1 million (before 10% deduction) The Indoor Recreation Service residential and non-residential cost allocation has been identified as 95% and 5% respectively. The 5% non-residential share has been attributed to recognize the service is made available to business in the community. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc N li y ~ ~ O o N N N O O O o ~ o_ t N p C N O O 10 O N N LO c I- co Cl) O O V O O M N O N U -C Lo M M I- (O N 110 z CO v a) a) Q O > N O O M_ O 1- _ 00 M N 00 T O O O M V V M N U t 0 0 M ' O (0 N_ r N_ m U ~ m a) O O O O O OHO lD V O N O'.. I- to (O 00 N f~ O d O N 00.0 (O V . M N V co O p ~ O O M O W 0 O ' Cl) Cl) U) . d j U O O 0 m In 1 M co N J 3 y t U N ~ co N _ O D N N 76 O O M. MAO O'..r (O (O (O U cu O O ~ 0 V ; M ' 1 Q 3 00 N N N CO M V U) O C ER N O N N U y C m N Q O O (7 wO ~nz > w a) Iq U Q A m d J C O O N O O O F O (0.0 (O O N 1 (O T M M w C E O (O .C.4 M d) Q N U) O O L (O O V V N N M I- O X N co m W N O N O O 0.0 O O O O O O y _ O OHO OI O N U) O- N O O O In 00 (O lD In M 00 b 1- O U U M VlD . to N d) z ~ N C a) p C t U O o I N D M O N O 0 0.0 0.0 O U- O 0.0 O N 6 O M N d C O MTV E NO a o m m y O o 0.0 o O o' o' o 0 :t! cu co- E O O o o, o o li U N o 0 0 o 0 0 U) M' In Cl) N N W O U) (O (V U) N O N N O (7 U ~ 0) N O) O) C N VIA Od) N t E> 0 N 0 0 N N O pj O N U H O , O C p I E O_ > Q N O O T N N F U LL (6 N> C N z E C N "I u) d U y O O E O E E E ' d' Q d ~ N .O_ N U O E p O , 2 2 N Q O) O O', N' N cu cu 0 5D U O N~ a,) i O p - O O O U i O. -C 0 z r N M In 5-8 N X r Q d' O 2 U N C N O O N E O U W N (6 U N Q N 9 5-9 5.3 Service Levels and Twenty-Year Capital Costs for Township DC Calculation This section evaluates the development-related capital requirements for those services with twenty year capital costs. 5.3.1 Roads and Related Services The Township provides 505 kilometres of Township roads at an approximate value of $489.2 million. The Township has identified 46 roads and related works associated with development. The total gross cost of the works is approximately $14.7 million. Portions of multiple projects above have been considered of benefit to the existing community as such most are not included as 100% growth-related works; the benefit to existing is approximately $10 million. The balance in the Roads DC Reserve fund as of December 31, 2008 was a deficit of $28,754 and has been added as a Reserve Fund Adjustment. The net growth-related capital cost is $4.7 million. There are currently four public works facilities used by the Township: North Yard, South Yard, Sand Storage Building 1 and Sand Storage Building 2, having a total square footage of 41,315, and an approximate value of $3.8 million. There is one capital project identified, a new salt dome, as well as a provision for future public works facilities. The gross capital cost of $964,353 has been identified for inclusion in the development charge calculation. The Township's Public Works Department currently has an inventory of 34 vehicles and equipment (with a useful life of seven years or more) with a replacement value of approximately $4.2 million. Over the forecast period the Township expects to add two pickup trucks, a tandem plow & sander and a provision for further public works vehicles has been identified as well. The net growth-related capital cost is for these items (including the reserve fund adjustment) totals $1.14 million. For public works related services, the above projects have been allocated to residential and non-residential development based upon a proration of future population and employment growth over the forecast period. This allocation provides for 83% of the net project costs to be borne by residential growth, and 17% by non-residential growth. Watson & Associates Economists Ltd. 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N Z Q d) m E ~ U 0) O O Q U -6 C 0) N Q C w ° d 0) E LL L O. i m O ~ Q C > N 0) o L d z -J I I i X N X r 0) d' 0 2 U Q y 0 O N O U W N (6 N Q od N 9 5-13 U U d y a3 C N O ~ U d -o a5 O N O O o ° a t N U 0 a3 In V _ V 0 CA - M V _ N d) CA N N N e In 00: N _In V O CA O U a) t w U Q N 0 Z N N > m U O In (0.(o 00 In t U m - C d m M Ln M N m G co In a) d m t o M (0 OD (1) U U 00 N Vln 0 N w 0 N U N CA M LO a3 y 0 0 0 V M O O O O O O! O M r, co n 04 0 0 OD H M I~ d) N r a3 . ^ r N m ~ U O C N a3 C N LL N .0 Z w m N 0') Q N Q U U ° ~ N ~ ~ Q D N ~ O Q N O o a) ~ - a a) N O a) X O M m W > N 0 O 0.0 V V .Q O O 0.0 O O (O r ' n M N O U U N M ! OHO r co N op ! CF) N Z N a) O _ M t 3 Q O -o E d 0 U d O a3 m o LL a ' > N O O O V V N O y O O O (O co a) N U a3 0 0! O (0 n 0 N O O 00 O a) Q N 6 W ( t U U rn CF) CF) 01 N 0 N N 0 0 O) N cu E T N d) N N d) d) p O . O O O O 0 0 N a) N . N N > 0 p N d N U as d Q a) C Q Q a3 O o ° N > N O C Q m N N O C m N " H U_ m p N cu U U) ~ Q d t ~ ° 06 Q . . (n C N Y ~ 0 ~ C U a) N O H a ' 2 0) LL a) a3 U C O- 7 . N m -O ~ > m t6 a3 Q a3 O Z ~ NAM V m d ' o z X N X r m d' 0 2 U 0 y U O N O W N a3 N Q od N 9 5-14 5.3.2 Fire Protection Services The Township Fire Department currently operates out of six fire halls, with a total of approximately 18,992 square feet of building space. In addition, the Township also has 23 vehicles with an estimated replacement value of approximately $4.5 million, a total complement of 142 firefighters and 232 pieces of equipment and gear. Over the twenty year forecast period, period the following capital projects have been identified to service new growth • Simcoe County Regional Airport Fire Station • Shanty Bay Fire Station #1 Expansion • Air/Light Unit • Fire Prevention Pick-up • Firefighters (13) • Emergency Operations Equipment In addition to those identified capital projects, a provision for further development related projects has been included in the development charge calculation. The fire services capital projects, including the provisions, have a gross capital cost estimate of $4.7 million, of which $394,500 has been applied to post period benefit, $1.97million is existing benefit, to which the balance in the development charge reserve fund of $90,773 was applied. The net growth- related capital cost is $2.3 million. Residential and non-residential shares have been identified as 88% / 12% respectively based on the ratio of projected new developed residential land area to new developed non-residential lands on a Municipal-wide basis. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 5-15 C O N '6 N U O O ~ O .2- -C N U 0 co 70, o r- N - O _LO LO N O) : V U) O U N -C N C~ U d Q m p Z O O M N U N - C d O) . V O. 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N O O N O O d) O O A N N O N O N O N Q (6 7 ~ Q N I Q O- O O) O N N > N O N N 0 Z N O) Q U 7 t O E U N 0 Y N U N 3 " (n .U 0 O -O N Q N ~ C d L d U t 01 d O d ~ N > C J > N N . f0 N O N F O Z N M V L Ld a - r 0) 69 0 0 N 0 Z X N X r N d' 0 2 U D y 0 O N E 0 W y U O Q od N 9 5-17 N (6 N N E C 7 'O W m O (n O o o a t N U 3 H U) 0, M d)_~ O - C ~ 00 00 _ O _ 0 N N 00 Cl N O N o o0 V N I M O Cu N U N t w U Q m p Z o 00 rn m o U N - C d 00 N 00 V (O O (p t ° co LO (0 Co M LO 0 N co N co N (6 ~ O O OHO (O V 0 0.0 V LO d N O'O W N r- O .0 H N U C N Cu C N N .2 Z N a) I 0 a) 0 Q O 7 UU:°. d N ~ Q N ~ D N a) ~ O Q O rn a) O O o c ° v oc~ a N N O C X a) m W > N 0 O O O O 0.0 O Q - O'O r N O U U V I\ O ° 04. 0 O N 04 Cl) Z N C i O t U O -o N 0 U V) d V) m a N O 0.0 O O N N U p 0 ~ 0.0 O; O O ~ 'IT 0.(D :g V; I- 04. 0 O Cl) N W U rn CF) CF) 0) i (6 N O N N N O O N N m E Q rn O 0) 0) O O O ° N O N O O N N O N Q (6 7 ~ Q N C I I E E Q a O a) O a: N w E 7 U N . O O N ' ! LLl ~ cu U) 2 . ¢ N LL m d N . U O) m N C d N ' E ° N N o f6 2 1 O Z ~ N A M V ~ ~ a r O 69 O O N 0 Z X N X r N d' 0 2 U 0 y 0 O N E O U W N U O Q od N 9 5-18 5.3.3 Police Services The Township Police Department currently operates out of the OPP substation at Horseshoe Valley, with approximately 3,750 square feet of building space. The current value of that facility is approximately $783,000. Over the twenty year forecast period, the Township has identified an OPP station to service new growth, at a capital cost of $1,000,000. A post period benefit of $150,000 has been allocated to stay within the allowable service standard and a benefit to existing of $703,000 has been deducted. The net capital cost of $147,000 has been included in the development charge calculation. For Police Services, residential and non-residential shares have been based upon a proration of future population and employment growth over the forecast period. This allocation provides for 83% of the net project costs to be borne by residential growth, and 17% by non-residential growth. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 5-19 O N 0 N U N U N LL O N O 0 0 a a t N U 0 0 H co (6 - d) O m a) L O N O N e V N V N O Cu N t U ~ U n m O z U N O) O U t 0c) N N N 04 0 U) N (6 ~ ~ O O O O O C N (6 C N N .2 Z N ~ I 0 a) 0 Q 0 7 U U Cu d N ~ Q N ~ D N ~ ~ O Q 0 O rn E Z: 0 O 0 o Q N N O ~ Cl) O m W > N 0 O O ~ Q N (6 O U 0 O O O LO O O O 0 N W Z N C i O t U O -o N 0 ~ O O O O O N m O r a N O N O O O O N U N O O 0 O O O O C7 .Q N O O N W r U m ~ C O O N E O O O N Q (6 7 ~ Q N I Q O- O O) '6 N N > N O N N Z 0 N 0) O U_ N p O N ~ .V N ¢ O m N U ~ a O F 0 z a X N X 0 N d' 0 U D 0 N O N E O W y U N Q od 0 N 9 6. DEVELOPMENT CHARGE CALCULATION Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 6-1 6. DEVELOPMENT CHARGE CALCULATION Table 6-1 calculates the proposed development charge for the roads and related, fire protection services and police services over the twenty year forecast period and Table 6-2 calculates the proposed development charge for outdoor recreation services, indoor recreation services and administration over the ten year forecast period. Table 6-3 summarizes the development charges as calculated herein. The residential calculations are provided by dividing the DC-eligible costs for all residential development (as provided in Chapter 5) by the gross population over each forecast period, thus providing a "cost per capita". The cost per capita is then multiplied by the average occupancy (persons per unit) for low, medium and high density building forms to derive the development charge. (Appendix A provides for the gross population figures for each forecast period along with the average occupancy by unit type.) Similar calculations are provided for non-residential development; however, the DC-eligible cost for each service is divided by the forecast building area (square footage) to provide the non-residential charge on a cost per square foot basis. A requirement of the Development Charges Act is to provide the anticipated capital spending and sources of revenue over the five-year life of the by-law. This summary is provided in Table 6-4. Watson & Associates Economists Ltd HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc TABLE 6-1 Township of Oro-Medonte DEVELOPMENT CHARGE CALCULATION Municipal-wide Services 2009-2029 6-2 2009 $ DC Eligible Cost 2009 $ DC Eli gible Cost SERVICE Residential Non-Residential SDU per ft2 1. Roads and Related 1.1 Roads 3,933,626 787,081 1,707 1.44 1.4 Depots and Domes 803,567 160,786 349 0.29 1.5 PW Rolling Stock 950,565 190,199 412 0.35 5,687,758 1,138,066 27468 2.08 2. Fire Protection Services 2.1 Fire Facilities 707,851 95,554 307 0.18 2.2 Fire Vehicles 1,081,653 146,015 469 0.27 2.3 Small Equipment and Gear 253,970 34,284 110 0.06 2,043,474 275,853 886 0.51 3. Police Services 3.1 Police Facilities 122,491 24,509 53 0.04 TOTAL $7,853,723 $1,438,429 $3,407 $2.63 DC ELIGIBLE CAPITAL COST $7,853,723 $1,438,429 20 Year Gross Population / GFA Growth (ft2.) 6,762 545,100 Cost Per Capita / Non-Residential GFA (ft2.) $1,161.43 $2.64 By Residential Unit Type p.p.u Single and Semi-Detached 2.93 $3,407 Apartments 2 Bedroom + 1.86 $2,156 Apartments Bach. & 1 Bdrm 1.32 $1,538 Other Multiples 2.45 $2,851 Watson & Associates Economists Ltd. Oro-Medonte DC Model - Report.xlsx TABLE 6-2 Township of Oro-Medonte DEVELOPMENT CHARGE CALCULATION Municipal-wide Services 2009-2019 6-3 2009 $ DC Eligible Cost 2009 $ DC Eli gible Cost SERVICE Residential Non-Residential SDU per ft2 4. Outdoor Recreation Services 4.1 Parkland Development, Amenities & Trails 647,724 34,091 678 0.15 4.2 Parks Vehicles and Equipment 16,929 891 18 0.01 664,653 34,982 696 0.16 5. Indoor Recreation Services 5.1 Recreation Facilities 956,391 50,336 1,001 0.22 6. Administration 6.1 Studies 205,215 42,906 215 0.18 TOTAL $1,826,259 $128,224 $1,912 $0.56 DC ELIGIBLE CAPITAL COST $1,826,259 $128,224 10 Year Gross Population / GFA Growth (ft2.) 2,802 235,200 Cost Per Capita / Non-Residential GFA (ft2.) $651.79 $0.55 By Residential Unit Type p.p.u Single and Semi-Detached 2.93 $1,912 Apartments 2 Bedroom + 1.86 $1,210 Apartments Bach. & 1 Bdrm 1.32 $863 Other Multiples 2.45 $1,600 Watson & Associates Economists Ltd. Oro-Medonte DC Model - Report.xlsx 6-4 TABLE 6-3 Township of Oro-Medonte DEVELOPMENT CHARGE CALCULATION TOTAL ALL SERVICES 2009 $ DC Eligible Cost 2009 $ DC Eligible Cost Residential Non-Residential SDU per ft- Municipal-wide Services 20 Year Municipal-wide Services 10 Year 7,853,723 1,826,259 1,438,429 128,224 37407 17912 2.63 0.56 TOTAL 9,679,982 1,566,653 5,319 3.19 Watson & Associates Economists Ltd. Oro-Medonte DC Model - Report.xlsx NW N LL ~O N CO W O U O w W O Q Q s Z V! Q O w H M F- 6 z w M x w CO CO w U' J Cl) V LO r- O O LO O M Q V O) O) In M In r V O 00 00 Cl) Cl) F- V O In V Do V (6 V r 0 Z Z V V In O) V Cl) N Cl) a0 z O W M Z 0 LL W LU W w J O N r Cl) 00 O N N N CO Q In 00 W In M 00 (D N r O) N V M -7 N 0 V V Z N O O O M O l V- ( 9 N 0 W o N N N M r C ) M In CD 75 44) W 000 0 00 O Cl) 0 0 O Cl) 0 0 0 0 0 ~ In In N O N Fx O) LO Cl) 0 C') W W I- P- N d d W N ~ m O o z U Q o z 000 000 O V W O LO N T Z W 0 L O) N I LL Q H O) 00 0) LL J U O co cn D U W W L) O M 000 000 O 00 O O CD CO CO L) z = 0 z F- z O O LL z w W 2 O 00 O Cl) V O r O C4 O N M 0 M O M M O (O r z V M 0 ~ LL H In O In Cl) N V r V N M W z CO 0') Do ao CO W W V3 Co co x < CO 000 000 O 00 O O o Z D ~O W ~ 2 U H O p w 0 F- V Cl) V O O In O O O O M N CO (O In M O In N O O O V l O J 0 V I- r O r O O O In - C ) co W Q V In M m N V O O Do In O N P- M In In In 1 m O In O H y O N M N V V O N r 0 V) Cl) M O T O N 0 N H ob N N .E C 0) 0) CO E E w N Q .O m 3 Z W (n c 0) 0) W fp N W V N cm ° E a) a~ w N Y U) O_ U O 0 U 0) U) U) a) U) ca U) (n E a) = U) LL CO CO -O ~ 0) 0) O_ V O O U D t C c W N . (n :U 0- C W N N LL O (6 -O O O ( U) O (n 42 -O O Q' (6 0) 0 LL > = 0) U 0) i2 U fp N 6 N N C O N ' - H 'O co a 0 U O 0) O E .V 0) ~C ~C U U 0) 0) ~ 6 0 Z C: 1) d o'LLLLU) N O cna cm co oaa ~0 in U) w N V In d N Cl) a) O N O a X m O N N N V (M V V O In E M W Q LL a 0 Q Q H O N M V In 6 H 6-5 N X 0 O N cr 7. DEVELOPMENT CHARGE POLICY RECOMMENDATIONS AND DEVELOPMENT CHARGE BY-LAW RULES Watson & Associates Economists Ltd HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 7-1 7. DEVELOPMENT CHARGE POLICY RECOMMENDATIONS AND DEVELOPMENT CHARGE BY-LAW RULES 7.1 Introduction s.s.5(1)9 states that rules must be developed: to determine if a development charge is payable in any particular case and to determine the amount of the charge, subject to the limitations set out in subsection 6." Paragraph 10 of the section goes on to state that the rules may provide for exemptions, phasing in and/or indexing of development charges. s.s.5(6) establishes the following restrictions on the rules: • the total of all development charges that would be imposed on anticipated development must not exceed the capital costs determined under 5(1) 2-8 for all services involved; • if the rules expressly identify a type of development, they must not provide for it to pay development charges that exceed the capital costs that arise from the increase in the need for service for that type of development. However, this requirement does not relate to any particular development; • if the rules provide for a type of development to have a lower development charge than is allowed, the rules for determining development charges may not provide for any resulting shortfall to be made up via other development. With respect to "the rules," Section 6 states that a DC by-law must expressly address the matters referred to above re s.s.5(1) para. 9 and 10, as well as how the rules apply to the redevelopment of land. The rules provided are based on the Township's existing policies however, there are items under consideration at this time and these may be refined prior to adoption of the by-law. Watson & Associates Economists Ltd HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 7-2 7.2 Development Charge By-law Structure It is recommended that: • the Township uses a uniform municipal-wide development charge calculation for all municipal services; • one municipal development charge by-law be used for the Township for all services. 7.3 Development Charge By-law Rules The following subsections set out the recommended rules governing the calculation, payment and collection of development charges in accordance with Section 6 of the Development Charges Act, 1997. It is recommended that the following sections provide the basis for the development charges: 7.3.1 Payment in any Particular Case In accordance with the Development Charges Act, 1997, s.2(2), a development charge be calculated, payable and collected where the development requires one or more of the following: a) the passing of a zoning by-law or of an amendment to a zoning by-law under section 34 of the Planning Act; b) the approval of a minor variance under Section 45 of the Planning Act; C) a conveyance of land to which a by-law passed under section 50(7) of the Planning Act applies; d) the approval of a plan of subdivision under Section 51 of the Planning Act; e) a consent under Section 53 of the Planning Act; f) the approval of a description under section 50 of the Condominium Act; or g) the issuing of a building permit under the Building Code Act in relation to a building or structure. Watson & Associates Economists Ltd HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 7-3 7.3.2 Determination of the Amount of the Charge The following conventions be adopted: 1) Costs allocated to residential uses will be assigned to different types of residential units based on the average occupancy for each housing type constructed during the previous decade. Costs allocated to non-residential uses will be assigned to industrial, commercial and institutional uses based on the gross floor area constructed. 2) Costs allocated to residential and non-residential uses are based upon a number of conventions, as may be suited to each municipal circumstance, e.g. • for Administration the costs have been based on an employment vs. population ten year growth ratio (83% / 17% respectively); • for Outdoor Recreation and Indoor Recreation services, a 5% non-residential attribution has been made to recognize use by the non-residential sector; • for Roads and Related and Police services, a 83% residential and 17% non- residential attribution has been made based on a population vs. employment growth ratio over the twenty year forecast period; • for Fire Protection services, a 88% residential / 12% non-residential allocation has been made based on the land coverage within the Township (twenty year forecast); 7.3.3 Application to Redevelopment of Land (Demolition and Conversion) If a development involves the demolition of and replacement of a building or structure on the same site, or the conversion from one principal use to another, the developer shall be allowed a credit equivalent to: Watson & Associates Economists Ltd HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 7-4 1) the number of dwelling units demolished/converted multiplied by the applicable residential development charge in place at the time the development charge is payable, and/or 2) the gross floor area of the building demolished/converted multiplied by the current non- residential development charge in place at the time the development charge is payable. The demolition credit is allowed only if the land was improved by occupied structures, and if the demolition permit related to the site was issued, less than 60 months prior to the issuance of a building permit. The credit can, in no case, exceed the amount of development charges that would otherwise be payable. 7.3.4 Exemptions (full or partial) a) Statutory exemptions • industrial building additions of up to and including 50% of the existing gross floor area (defined in O.Reg. 82/98, s.1) of the building; for industrial building additions which exceed 50% of the existing gross floor area, only the portion of the addition in excess of 50% is subject to development charges (s.4(3)); • buildings or structures owned by and used for the purposes of any municipality, local board or Board of Education (s.3); • residential development that results in only the enlargement of an existing dwelling unit, or that results only in the creation of up to two additional dwelling units (based on prescribed limits set out in s.2 of O.Reg. 82/98). 7.3.5 Phasing in No provisions for phasing in the development charge are provided in the development charge by-law. Watson & Associates Economists Ltd HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 7-5 7.3.6 Timing of Collection The development charge for all services be collected at the time of issuance of the first building permit, subject to early or late payment agreements entered into by the Township and an owner under section 27 of the DCA, 1997. 7.3.7 Indexing Indexing of the development charges shall be implemented on a mandatory basis annually on the first day of January in each year, beginning January 1St, 2010, in accordance with the Statistics Canada Quarterly, Construction Price Statistics for the most recent year over year period. 7.4 Other Development Charge By-law Provisions It is recommended that: 7.4.1 Categories of Services for Reserve Fund and Credit Purposes The Township's development charge collections are currently reserved in four separate reserve funds: Transportation, Fire and Emergency, Recreation and Administration. It is recommended that six separate reserve funds be established: Roads and Related, Fire Protection Services, Police Services, Outdoor Recreation Services, Indoor Recreation Services and Administration. It is recommended that this breakdown be implemented in conjunction with the new by-law. Appendix F outlines the reserve fund policies that the Township is required to follow as per the DC Act. 7.4.2 By-law In-force Date A by-law under DCA, 1997 comes into force on the day after which the by-law is passed by Council. Watson & Associates Economists Ltd HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 7-6 7.4.3 Minimum Interest Rate Paid on Refunds and Charged for Inter-Reserve Fund Borrowing The minimum interest rate is the Bank of Canada rate on the day on which the by-law comes into force (as per s.11 of O. Reg. 82/98) 7.5 Other Recommendations It is recommended that Council: "Whenever appropriate, request that grants, subsidies and other contributions be clearly designated by the donor as being to the benefit of existing development (or new development as applicable)"; "Adopt the assumptions contained herein as an `anticipation' with respect to capital grants, subsidies and other contributions"; "Approve the capital project listing set out in Chapter 5 of the Development Charges Background Study dated July 13, 2009, subject to further annual review during the capital budget process"; "Approve the Development Charges Background Study dated July 13, 2009, as amended (if applicable)"; "THAT By-law 2004-94 [the Township's previous Development Charges by-law] be repealed"; and "Determine that no further public meeting is required"; and "Approve the Development Charge By-law as set out in Appendix E." Watson & Associates Economists Ltd HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 8. BY-LAW IMPLEMENTATION Watson & Associates Economists Ltd HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 8-1 8. BY-LAW IMPLEMENTATION 8.1 Public Consultation Process 8.1.1 Introduction This chapter addresses the mandatory, formal public consultation process (Section 8.1.2), as well as the optional, informal consultation process (Section 8.1.3). The latter is designed to seek the co-operation and involvement of those involved, in order to produce the most suitable policy. Section 8.1.4 addresses the anticipated impact of the development charge on development, from a generic viewpoint 8.1.2 Public Meeting of Council Section 12 of the DCA, 1997 indicates that before passing a development charge by-law, Council must hold at least one public meeting, giving at least 20 clear days notice thereof, in accordance with the Regulation. Council must also ensure that the proposed by-law and background report are made available to the public at least two weeks prior to the (first) meeting. Any person who attends such a meeting may make representations related to the proposed by- law. If a proposed by-law is changed following such a meeting, the Council must determine whether a further meeting (under this section) is necessary (i.e. if the by-law which is proposed for adoption has been changed in any respect, the Council should formally consider whether an additional public meeting is required, incorporating this determination as part of the final by-law or associated resolution. It is noted that Council's decision, once made, is final and not subject to review by a Court or the OMB). 8.1.3 Other Consultation Activity There are three broad groupings of the public who are generally the most concerned with municipal development charge policy: Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 8-2 1. The residential development community, consisting of land developers and builders, who are typically responsible for generating the majority of the development charge revenues. Others, such as realtors, are directly impacted by development charge policy. They are therefore potentially interested in all aspects of the charge, particularly the quantum by unit type, projects to be funded by the DC and the timing thereof, and municipal policy with respect to development agreements, DC credits and front-ending requirements. 2. The second public grouping embraces the public at large and includes taxpayer coalition groups and others interested in public policy (e.g. in encouraging a higher non- automobile modal split). 3. The third grouping is the industrial/commercial/institutional development sector, consisting of land developers and major owners or organizations with significant construction plans, such as hotels, entertainment complexes, shopping centres, offices, industrial buildings and institutions. Also involved are organizations such as Industry Associations, the Chamber of Commerce, the Board of Trade and the Economic Development Agencies, who are all potentially interested in municipal development charge policy. Their primary concern is frequently with the quantum of the charge, gross floor area exclusions such as basement, mechanical or indoor parking areas, or exemptions and phase-in or capping provisions in order to moderate the impact. 8.2 Anticipated Impact of the Charge on Development The establishment of sound development charge policy often requires the achievement of an acceptable balance between two competing realities. The first is that high non-residential development charges can, to some degree, represent a barrier to increased economic activity and sustained industrial/commercial growth, particularly for capital intensive uses. Also, in many cases, increased residential development charges can ultimately be expected to be recovered via higher housing prices and can impact project feasibility in some cases (e.g. rental apartments). On the other hand, development charges or other municipal capital funding sources need to be obtained in order to help ensure that the necessary infrastructure and amenities are installed. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 8-3 The timely installation of such works is a key initiative in providing adequate service levels and in facilitating strong economic growth, investment and wealth generation. 8.3 Implementation Requirements 8.3.1 Introduction Once the Township has calculated the charge, prepared the complete Background Study, carried out the public process and passed a new by-law, the emphasis shifts to implementation matters. These include notices, potential appeals and complaints, credits, front-ending agreements, subdivision agreement conditions and finally the collection of revenues and funding of projects. The following sections overview requirements in each case. 8.3.2 Notice of Passage In accordance with s.13 of the DCA, when a DC by-law is passed, the municipal clerk shall give written notice of the passing and of the last day for appealing the by-law (the day that is 40 days after the day it was passed). Such notice must be given not later than 20 days after the day the by-law is passed (i.e. as of the day of newspaper publication or the mailing of the notice). Section 10 of O.Reg. 82/98 further defines the notice requirements which are summarized as follows: • Notice may be given by publication in a newspaper which is (in the Clerk's opinion) of sufficient circulation to give the public reasonable notice, or by personal service, fax or mail to every owner of land in the area to which the by-law relates; • s.s.10 (4) lists the persons/organizations who must be given notice; • s.s.10 (5) lists the eight items which the notice must cover. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 8-4 8.3.3 By-law Pamphlet In addition to the "notice" information, the municipality must prepare a "pamphlet" explaining each development charge by-law in force, setting out: • a description of the general purpose of the development charges; • the "rules" for determining if a charge is payable in a particular case and for determining the amount of the charge; • the services to which the development charges relate; and • a general description of the general purpose of the Treasurer's statement and where it may be received by the public. Where a by-law is not appealed to the OMB, the pamphlet must be readied within 60 days after the by-law comes into force. Later dates apply to appealed by-laws. The Township must give one copy of the most recent pamphlet without charge, to any person who requests one. 8.3.4 Appeals Sections 13-19 of the DCA, 1997 set out requirements relative to making and processing of a DC by-law appeal and OMB Hearing in response to an appeal. Any person or organization may appeal a DC by-law to the OMB by filing with the municipal clerk a notice of appeal, setting out the objection to the by-law and the reasons supporting the objection. This must be done by the last day for appealing the by-law, which is 40 days after the by-law is passed. The Township is carrying out a public consultation process, in order to address the issues which come forward as part of that process, thereby avoiding or reducing the need for an appeal to be made. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 8-5 8.3.5 Complaints A person required to pay a development charge, or his agent may complain to Municipal Council imposing the charge that: • the amount of the charge was incorrectly determined; • the credit to be used against the development charge was incorrectly determined; or • there was an error in the application of the development charge. Sections 20-25 of the DCA, 1997 set out the requirements that exist, including the fact that a complaint may not be made later than 90 days after a DC (or any part of it) is payable. A complainant may appeal the decision of Municipal Council to the OMB. 8.3.6 Credits Sections 38-41 of the DCA, 1997 set out a number of credit requirements, which apply where a municipality agrees to allow a person to perform work in the future that relates to a service in the DC by-law. These credits would be used to reduce the amount of development charges to be paid. The value of the credit is limited to the reasonable cost of the work which does not exceed the average level of service. The credit applies only to the service to which the work relates, unless the municipality agrees to expand the credit to other services for which a development charge is payable. 8.3.7 Front-Ending Agreements The Township and one or more landowners may enter into a front-ending agreement which provides for the costs of a project which will benefit an area in the municipality to which the DC by-law applies. Such an agreement can provide for the costs to be borne by one or more parties to the agreement who are, in turn, reimbursed in future, by persons who develop land defined in the agreement. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc 8-6 Part III of the DCA, 1997 (Sections 44-58) addresses front-ending agreements and removes some of the obstacles to their use which were contained in the DCA, 1989. Accordingly, the Township assesses whether this mechanism is appropriate for its use, as part of funding projects prior to Municipal funds being available. 8.3.8 Severance and Subdivision Agreement Conditions Section 59 of the DCA, 1997 prevents a municipality from imposing directly or indirectly, a charge related to development or a requirement to construct a service related to development, by way of a condition or agreement under s.51 or s.53 of the Planning Act, except for: • "local services, related to a plan of subdivision or within the area to which the plan relates, to be installed or paid for by the owner as a condition of approval under section 51 of the Planning Act;" • "local services to be installed or paid for by the owner as a condition of approval under Section 53 of the Planning Act." It is also noted that s.s.59 (4) of the DCA, 1997 requires that the municipal approval authority for a draft plan of subdivision under s.s.51 (31) of the Planning Act, use its power to impose conditions to ensure that the first purchaser of newly subdivided land is informed of all the development charges related to the development, at the time the land is transferred. In this regard, if the municipality in question is a commenting agency, in order to comply with subsection 59(4) of the Development Charges Act, 1997 it would need to provide to the approval authority, information regarding the applicable municipal development charges related to the site. If the municipality is an approval authority for the purposes of section 51 of the Planning Act, it would be responsible to ensure that it collects information from all entities which can impose a development charge. The most effective way to ensure that purchasers are aware of this condition would be to require it as a provision in a registered subdivision agreement, so that any purchaser of the property would be aware of the charges at the time the title was searched prior to closing a transaction conveying the lands. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc APPENDIX A BACKGROUND INFORMATION ON RESIDENTIAL AND NON-RESIDENTIAL GROWTH FORECAST Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc A-1 K a ZN Z~- W U g W O K j ~ O o0x W LL H x03 N a O 2 0 N 0 Z J a_ f Oz 0 V5 K ~ a d O N ~ a `m a N r v ro r r N N N o in m o rn co r o 0 o in in N N N N N N o F in in o N ~ N O O M in co r co co ~ o ~ o ~ (O I~ V N N i0 of V of O r r row ai ~ o W f0 n O n m W ~ o N M in N W o M f0 ~ in O M r o N of N O O i0 O ~O i0 O O O O O O i0 i0 i0 i0 i0 i0 N V N O O 0 0 0 0 0 o T ro O o m ~ I I I I I I I O N M o 0 0 0 0 0 0 o S a= ~ o in o in N m 0 0 0 0 0 o m m m m m m in n in 0 0 0 0 0 0 0 O D 3 0 m ~ y - in in in m N co I~ N O co o co o r N O N - W i0 r - m V v OD W m O - M W m W O M f0 W o M O N E T in co r r r of of O O N M N U N 0 m oo v O O a of i0 ~ m m. (O M O (O of O N M O M O ~ N m r r O m N of N OV O O N M i0 of N N N N N N n f0 r f0 n N w N N f0 ro w l O m ~ n f0 M OD c N W m OD n b b o~ O O or V o~ V o~ O N N~ O 0 fO 0 A 0 V A V N A N E O~ 0 0 N N 0 0 0 0 0 ' O N N N N N~ N N N N N N N 'O - '0 <o m ~ o <o 0 m 0 m 0 m 0 m 0 o 0 ~ ~ N N N N N N N a a a a a a a :4 Q A E m ro °o N o U I E S a 0 m Q o E E O °m A N LL rn ~ o o ° O N N ~ N j a E N m 4 > 0 U E o 0 - o `m w N U N t o O Q ~ o o o m 2 ~ E2 0 U U m u~ y ~o m LL~ ~o m u~ y N m ,n m u~ m ~o m 22 N ~ LL r LL~ m in - r2 u2 6 O CO ~2 °N U m LU O ~ ~y m o o r Q o o s, LU Z o T _ M I1~ M V o a O L fp C = LL ° N ~ D Q r 0 J O r ° N o 0 oN ~ °o (6 U O Or ° ~ O ON N ~ LL~ $ 1 0 0 N r p° 2 u7 m ~ 00 00 N 00 °2 m o 00 v 6, Gs O O O O O O LL N ~ O LL~ O LL~ N s;!un 6uisnOH x 0 0 v 0 3 O m U Q A m U c6 O N s ro O O N ~ T N A o o ~ m m v ~ O `o y LL S t v 0 U O U Q W A-2 0 LL w O co O zLL O ¢w U m O Z U z w w < 0 W Z p }a 0 ~ U 2 Z Z °a 0 OWw aaI co U = U_ O Z x ~a3 wM x O ~ LL 0 F O Z ww ¢0 20 F W W 1 W w 0 Z w W > w O a O z w w 0 w O Z ¢ Q C7 O F Z O 1 F w F ~ Z 41 N K ~ W ¢ O U Q F ~ w D ~ Z Z 0. F w j Z U O Z a ~ z z O w 0 3 z zZ ~ ¢ o u w a Z O ~ ~ a z m z z D o w 0 W ~ F z z W ~ W F D a ~ w w n 0 w O 0 O D ~ w w 0 z w 0 0 ~ O Z z m' m' m' m' m' F w z a O w w r m a v a¢ w fn 6 b O w OJ 0 w o ow ~ w a` L LL A-3 SCHEDULE 3 TOWNSHIP OF ORO-MEDONTE CURRENT YEAR GROWTH FORECAST MID 2006 TO MID 2009 POPULATION Mid 2006 Population 20,031 Occupants of New Housing Units, Units (2) multiplied by persons per unit (3) 196 2.99 Mid 2006 to Mid 2009 gross population increase 586 586 Decline in Housing Unit Occupancy, Units (4) multiplied by ppu decline rate (5) 7,320 -0.0456 Mid 2006 to Mid 2009 total decline in population -334 -334 Population Estimate to Mid 2009 20,283 Net Population Increase, Mid 2006 to Mid 2009 252 (1) 2006 population based on StatsCan Census unadjusted for Census Undercount. (2) Estimated residential units constructed, Mid 2006 to the beginning of the growth period, assuming a six month lag between construction and occupancy. (3) Average number of persons per unit (ppu) is assumed to be: Persons Structural Type Per Unit' Singles & Semi's (Low Density) 2.99 Townhomes (Medium Density) 2.46 Apartments (High Density) 1.58 Tota I , Based on 2006 Census custom database % Distribution Weighted Persons of Estimated Units Per Unit Average 100% 2.99 0% 0.00 0% 0.00 100% 2.99 2 Based on Building permit/completion acitivty (4) 2006 households taken from StatsCan Census. (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. Watson & Associates Economists Ltd. 26/06/2009 H:\Oro-Medonte\2009 DC\Growth\Oro-Medonte Growth Forecast 2009.xlsx A-4 SCHEDULE 4a TOWNSHIP OF ORO-MEDONTE FIVE YEAR GROWTH FORECAST MID 2009 TO MID 2014 POPULATION Mid 2009 Population 20,283 Occupants of New Housing Units, Units (2) multiplied by persons per unit (3) 350 2.93 Mid 2009 to Mid 2014 gross population increase 1,027 1,027 Decline in Housing Unit Occupancy, Units (4) multiplied by ppu decline rate (5) 7,516 -0.0586 Mid 2009 to Mid 2014 total decline in population -440 -440 Population Estimate to Mid 2014 20,870 Net Population Increase, Mid 2009 to Mid 2014 587 (1) Mid 2009 Population based on: 2006 Population (20,031) + Mid 2006 to Mid 2009 estimated housing units to beginning of forecast period (196 x 2.99 = 586) + (7,320 x -0.0456 = -334) = 20,283 (2) Based upon forecast building permits/completions assuming a lag between construction and occupancy. (3) Average number of persons per unit (ppu) is assumed to be: Persons % Distribution Weighted Persons Structural Type Singles & Semi's (Low Density) Townhomes (Medium Density) Apartments (High Density) one bedroom or less 1.32 two bedrooms or more 1.86 Tota I Persons per unit based on adjusted Statistics Can Per Unit' 2.93 2.45 1.64 ada Custom 2006 Census database of Estimated Units Per Unit Average 100% 2.93 0% 0.00 0% 0.00 100% 2.93 2 Forecast unit mix based upon historical trends and housing units in the development process. (4) Mid 2009 households based upon 7,320 (2006 Census) + 196 (Mid 2006 to Mid 2009 unit estimate) = 7,516 (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. Watson & Associates Economists Ltd. 26/06/2009 H:\Oro-Medonte\2009 DC\Growth\Oro-Medonte Growth Forecast 2009.xlsx A-5 SCHEDULE 4b TOWNSHIP OF ORO-MEDONTE TEN YEAR GROWTH FORECAST MID 2009 TO MID 2019 POPULATION Mid 2009 Population 20,283 Occupants of New Housing Units, Units (2) multiplied by persons per unit (3) 955 2.93 Mid 2009 to Mid 2019 gross population increase 2,802 2,802 Decline in Housing Unit Occupancy, Units (4) multiplied by ppu decline rate (5) 7,516 -0.1081 Mid 2009 to Mid 2019 total decline in population -812 -812 Population Estimate to Mid 2019 22,273 Net Population Increase, Mid 2009 to Mid 2019 1,990 (1) Mid 2009 Population based on: 2006 Population (20,031) + Mid 2006 to Mid 2009 estimated housing units to beginning of forecast period (196 x 2.99 = 586) + (7,320 x -0.0456 = -334) = 20,283 (2) Based upon forecast building permits/completions assuming a lag between construction and occupancy. (3) Average number of persons per unit (ppu) is assumed to be: Persons % Distribution Weighted Persons Structural Type Singles & Semi's (Low Density) Townhomes (Medium Density) Apartments (High Density) one bedroom or less 1.32 two bedrooms or more 1.86 Tota I Persons per unit based on adjusted Statistics Can Per Unit' 2.93 2.45 1.64 ada Custom 2006 Census database of Estimated Units Per Unit Average 100% 2.93 0% 0.00 0% 0.00 100% 2.93 2 Forecast unit mix based upon historical trends and housing units in the development process. (4) Mid 2009 households based upon 7,320 (2006 Census) + 196 (Mid 2006 to Mid 2009 unit estimate) = 7,516 (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. Watson & Associates Economists Ltd. 26/06/2009 H:\Oro-Medonte\2009 DC\Growth\Oro-Medonte Growth Forecast 2009.xlsx A-6 SCHEDULE 4c TOWNSHIP OF ORO-MEDONTE TWENTY YEAR GROWTH FORECAST MID 2009 TO MID 2029 POPULATION Mid 2009 Population 20,283 Occupants of New Housing Units, Units (2) multiplied by persons per unit (3) 2,305 2.93 Mid 2009 to Mid 2029 gross population increase 6,762 6,762 Decline in Housing Unit Occupancy, Units (4) multiplied by ppu decline rate (5) 7,516 -0.2175 Mid 2009 to Mid 2029 total decline in population -1,634 -1,634 Population Estimate to Mid 2029 25,411 Net Population Increase, Mid 2009 to Mid 2029 5,128 (1) Mid 2009 Population based on: 2006 Population (20,031) + Mid 2006 to Mid 2009 estimated housing units to beginning of forecast period (196 x 2.99 = 586) + (7,320 x -0.0456 = -334) = 20,283 (2) Based upon forecast building permits/completions assuming a lag between construction and occupancy. (3) Average number of persons per unit (ppu) is assumed to be: Persons % Distribution Weighted Persons Structural Type Singles & Semi's (Low Density) Townhomes (Medium Density) Apartments (High Density) one bedroom or less 1.32 two bedrooms or more 1.86 Tota I Persons per unit based on adjusted Statistics Can Per Unit' 2.93 2.45 1.64 ada Custom 2006 Census database of Estimated Units Per Unit Average 100% 2.93 0% 0.00 0% 0.00 100% 2.93 2 Forecast unit mix based upon historical trends and housing units in the development process. (4) Mid 2009 households based upon 7,320 (2006 Census) + 196 (Mid 2006 to Mid 2009 unit estimate) = 7,516 (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. Watson & Associates Economists Ltd. 26/06/2009 H:\Oro-Medonte\2009 DC\Growth\Oro-Medonte Growth Forecast 2009.xlsx A-7 SCHEDULE 5 TOWNSHIP OF ORO-MEDONTE BUILDOUT GROWTH FORECAST MID 2009 TO BUILDOUT POPULATION Mid 2009 Population 20,283 Occupants of New Housing Units, Units (2) multiplied by persons per unit (3) 3,510 2.93 Mid 2009 to Buildout gross population increase 10,298 10,298 Decline in Housing Unit Occupancy, Units (4) multiplied by ppu. decline rate (5) 7,516 -0.3191 Mid 2009 to Buildout total decline in population -2,398 -2,398 Population Estimate to Buildout 28,182 Net Population Increase, Mid 2009 to Buildout 7,899 (1) Mid 2009 Population based on: 2006 Population (20,031) + Mid 2006 to Mid 2009 estimated housing units to beginning of forecast period (196 x 2.99 = 586) + (7,320 x -0.0456 = -334) = 20,283 (2) Based upon forecast building permits/completions assuming a lag between construction and occupancy. (3) Average number of persons per unit (ppu) is assumed to be: Persons % Distribution Weighted Persons Structural Type Singles & Semi's (Low Density) Townhomes (Medium Density) Apartments (High Density) one bedroom or less 1.32 two bedrooms or more 1.86 Tota I Persons per unit based on adjusted Statistics Can Per Unit' 2.93 2.45 1.64 ada Custom 2006 Census database of Estimated Units Per Unit Average 100% 2.93 0% 0.00 0% 0.00 100% 2.93 2 Forecast unit mix based upon historical trends and housing units in the development process. (4) Mid 2009 households based upon 7,320 (2006 Census) + 196 (Mid 2006 to Mid 2009 unit estimate) = 7,516 (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. Watson & Associates Economists Ltd. H:\Oro-Medonte\2009 DC\Growth\Oro-Medonte Growth Forecast 2009.xlsx A-8 SCHEDULE 6a TOWNSHIP OF ORO-MEDONTE SUMMARY OF UNITS IN THE DEVELOPMENT PROCESS (TOTAL) Single Detached (Low Density) Total Units Area (Ha) Units in the Development Process 1,696 1,696 505.27 Designated Residential Lands With No Application 230 230 161.5 Total Serviced 1,926 1,926 666.7 Source: Township of Oro-Medonte Planning Department, June, 2009. SCHEDULE6b TOWNSHIP OF ORO-MEDONTE SUMMARY OF UNITS IN THE DEVELOPMENT PROCESS (WATER & SEWER) Map# Owner Single Detached (Low Density) Total Units Area (Ha) Units in the Development Process 6 Kellwat 97 97 20.82 13 Horseshoe Timber Ridge 250 250 27.92 21 HRC Lifestyle 480 480 85.3 22 Craighurst - 36.0 23 1198677 Ontario Ltd. 4 4 6.17 24 Hawkestone Expansion - - 146.9 Designated Residential Lands With Application - - 0 Total Units in the Development Process 831 831 323.11 Designated Residential Lands With No Application 149 149 61.52 Total Water & Sewer 980, 980, 384.63 Source: Township of Oro-Medonte Planning Department, June, 2009. SCHEDULE6c TOWNSHIP OF ORO-MEDONTE SUMMARY OF UNITS IN THE DEVELOPMENT PROCESS (WATER ONLY) Map# I Owner Single Detached (Low Density) Total Units Area (Ha) Units in the Development Process 1 Homire Development 28 28 15.77 2 Andersen Development 22 22 6.07 3 Thatcher 21 21 8.47 12 Keyzer 55 55 31.7 15 CRA Developments 6 6 9.30 18 Diamond Valley 137 137 59.0 19 Capobianco (Sabiston) 83 83 51.85 Designated Residential Lands With Application 513 513 145.82 Total Units in the Development Process 865 865 182.16 Designated Residential Lands With No Application 81 81 99.95 Total Water & Sewer 946 946 427.93 Source: Township of Oro-Medonte Planning Department. June, 2009. Watson & Associates Economists Ltd. 26/06/2009 H:\Oro-Medonte\2009 DC\Growth\Oro-Medonte Growth Forecast 2009.xlsx MAP A-1 A-9 Township of Oro-Medonte LEGEND ■ Airport Lands 1 -4. - n- February 23, 2009 A-10 SCHEDULE7 TOWNSHIP OF ORO-MEDONTE HISTORICAL RESIDENTIAL BUILDING PERMITS YEARS 1999 - 2008 RESIDENTIAL BUILDING PERMITS Year Low Density Medium Density High Density Total (Singles & Semis) (Townhomes) (Apartments) 1999 143 0 0 143 2000 127 0 60 187 2001 119 0 0 119 2002 143 0 10 153 2003 157 0 0 157 Sub-total 689 0 70 759 Average (1999 - 2003) 138 0 14 152 % Breakdown 90.8% 0.0% 9.2% 100.0% 2004 190 16 0 206 2005 155 0 0 155 2006 84 0 0 84 2007 59 0 0 59 2008 53 0 0 53 Sub-total 541 16 0 557 Average (2004 - 2008) 108 3 0 111 % Breakdown 97.1% 2.9% 0.0% 100.0% 1999 - 2008 Total 1,230 16 70 1,316 Average 123 2 7 132 % Breakdown 93.5% 1.2% 5.3% 100.0% Sni j rcAS' Building Permits - Statistics Canada Publication, 64-001XIB Watson & Associates Economists Ltd. 26/06/2009 H:\Oro-Medonte\2009 DC\Growth\Oro-Medonte Growth Forecast 2009.xlsx A-11 SCHEDULE 8a TOWNSHIP OF ORO-MEDONTE PERSONS PER UNIT BY AGE AND TYPE OF DWELLING (2006 CENSUS) Age of LOW DENSITY - Single and Semi-Detached Dwelling < 1 BR 1 BR 213R 314 BR 5+ BR Total Adjusted PPU' 20 Year Average 1-5 1.750 3.107 - 2.988 2.99 6-10 1.846 2.885 3.727 2.873 2.87 11-15 - 3.029 - 3.016 3.02 16-20 2.097 3.056 3.059 2.858 2.86 2 9; 20-25 1.846 2.955 - 2.700 2.70 25-35 - 1.854 2.865 - 2.663 2.66 35+ 1.933 2.068 2.621 3.906 2.578 2.58 Total 1.893 1.956 2.880 3.559 2.752 Age of MEDIUM DENSITY - Rows and Apartment in Duplex Dwelling < 1 BR 1 BR 213R 3/4 BR 5+ BR Total 1-5 6-10 11-15 16-20 20-25 25-35 - 35+ 1.667 Total 2.292 Age of HIGH DENSITY - Apartments < > 5 Storeys Dwelling < 1 BR 1 BR 213R 314 BR 5+ BR Total 1-5 6-10 11-15 16-20 20-25 25-35 35+ - - Total 1.545 1.529 Age of ALL DENSITY TYPES Dwelling < 1 BR 1 BR 213R 3/4 BR 5+ BR Total 1-5 1.786 3.121 - 2.982 6-10 1.600 2.908 3.727 2.875 11-15 1.636 3.029 - 3.016 16-20 2.226 3.076 2.947 2.840 20-25 - 1.923 2.955 - 2.647 25-35 1.667 1.896 2.866 - 2.662 35+ 1.667 2.022 2.614 3.906 2.534 Total 1.860 1.954 2.883 3.526 2.730 1. The Census PPU has been adjusted to account for the downward PPU trend which has been recently experienced in both new and older units, largely due to the aging of the population Note: Does not include Statistics Canada data classified as 'Other' PPU Not calculated for samples less than or equal to 50 dwelling units, and does not include institutional population Watson & Associates Economists Ltd. 26/06/2009 H:\Oro-Medonte12009 DC\Growth\Oro-Medonte Growth Forecast 2009.xlsx A-12 SCHEDULE8b Simcoe County PERSONS PER UNIT BY AGE AND TYPE OF DWELLING (2006 CENSUS) Age of LOW DENSITY - Single and Semi-Detached Dwelling < 1 BR 1 BR 2 BR 314 BR 5+ BR Total 1-5 2.000 2.106 3.070 4.356 2.972 6-10 2.194 2.081 3.091 4.330 3.045 11-15 1.571 1.897 3.072 4.172 3.024 16-20 1.975 1.897 3.084 4.080 3.001 20-25 1.913 1.822 2.919 4.022 2.822 25-35 - 1.800 1.908 2.856 4.005 2.769 35+ 1.710 1.782 1.930 2.726 3.633 2.558 Total 1.689 1.847 1.956 2.933 4.029 2.818 Age of MEDIUM DENSITY - Rows and Apartment in Duplex Dwelling < 1 BR 1 BR 2 BR 314 BR 5+ BR Total Adjusted PPII' 20 Year Average 1-5 1.526 2.012 2.618 - 2.496 2.46 6-10 1.667 2.000 2.704 4.000 2.513 2.48 11-15 1.619 1.896 2.700 4.000 2.500 2.47 16-20 1.519 1.901 2.759 2.800 2.431 2.41 2.4i 20-25 1.500 1.857 2.927 - 2.549 2.54 25-35 - 1.410 2.019 2.781 3.500 2.574 2.57 35+ 1.529 1.489 1.962 2.785 3.423 2.285 2.28 Total 1.244 1.507 1.958 2.736 3.595 2.457 Age of HIGH DENSITY - Apartments < > 5 Storeys Dwelling < 1 BR 1 BR 2 BR 314 BR 5+ BR Total Adjusted PPt?' 20 Year Average 1-5 1.475 1.578 2.097 1.638 1.58 6-10 - 1.370 1.764 2.353 1.664 1.60 11-15 1.364 1.291 1.803 2.547 1.752 1.70 16-20 - 1.328 1.763 2.579 1.703 1.67 1+64 20-25 0.947 1.317 1.844 3.027 1.717 1.70 25-35 1.231 1.210 1.793 2.712 - 1.648 1.64 35+ 1.176 1.353 1.905 2.581 3.375 1.731 1.72 Total 1.193 1.319 1.813 2.591 3.241 1.703 Age of ALL DENSITY TYPES Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 1-5 - 1.721 2.014 3.009 4.336 2.852 6-10 1.571 1.670 2.023 3.046 4.290 2.922 11-15 1.273 1.370 1.862 3.021 4.136 2.815 16-20 1.150 1.456 1.847 3.048 3.996 2.784 20-25 0.962 1.414 1.834 2.923 3.980 2.599 25-35 1.385 1.351 1.870 2.847 3.952 2.590 35+ 1.338 1.504 1.927 2.725 3.612 2.426 Total 1.313 1.478 1.918 2.909 3.985 2.657 1. The Census PPU has been adjusted to account for the downward PPU trend which has been recently experienced in both new and older units, largely due to Note: Does not include Statistics Canada data classified as 'Other' Note: Does not include institutional population Watson & Associates Economists Ltd. 26/06/2009 H:\Oro-Medonte\2009 DC\Growth\Oro-Medonte Growth Forecast 2009.xlsx A-13 co co c F + LO 04 co co Z J J w M Q N LL w f 1~ r C LLl a N = U Z Z o 0 0 Q I-- U E Q W wa~ = ❑ U) o J J f O 6 Q Z p Co o0aLu ~U UL ( C Q . = C) U V 0 co V)2~N Q ■ U) H Z c T o D ~ 0 m H N o 0) Z ❑ Co i w CL 0 V) O N z w CL L, r O 00 O 00 O 00 O 00 M M N N lc-- lc-- O O 6ulll9md aad suosaad r N r N O O N N O N 0 r M N 0 N O M O O r N O r 0 N O O N A-14 Z O 0 w O w O O N Z 0 H 0 N N mi a _ _ _ _ _ _ _ _ _ _ -9 o 5 E ~ w c c o4 No N o o U LL N 0 c 0 r c 0 c d = ac E5 E o rc . O 0 U LL a E c m O o 3m S 11 1 m r o E - a` I 1 U ~ Q c c r c ac 0 c - c O o 77 o 2 M m s M m E; o E; oN E ~ o - E orc o u LL Q 3 a c ` 0 i o 6 c5 E a` 9 9 o o o o o `c o o a _ _ _ _ v m v m v m v m O O N N ' N ' N ' N ' O O O O N N ' N ' N ' N ' O D G N (O ~ 0 V 0 ~ 0 V 0 ~ 0 0 O N N 'O O ~ O ~ O ~ O ~ ~ m O N N V O ~ O ~ O ~ O ~ ~ m O) O ~ 0 0 0 0 O) O 0 0 0 0 ~ ~ ~ ~ ~ m O) ~ O N (O ~ O N O N O N O N 0 O N O) ~ O N (O ~ O N O N O N O N 0 O N E E `o a zo `w W, oc E _ K m E. 0 E v 0- t5 _a E 2 -0 - E 7 v o V rv v n - 0 A-15 F Z z0 OF W U co N d3 O m O Z m N O LL U ~ N O J h o d Q Q O _ Z W Z } Z 0 O (n F W w z O Z CO In M O) (O O M In O d) M (O N O) O) (O co O M (O O 0 In M M 0 M N M M M O) V O V N' N In W O 0 7 0 V 7 V C) _ O 0 er M In O) rj p r~ M M - N M - I~ M p 0 (O H 0 O N 0000 co C W IN M M ~ co O _ U M V H N N M V N (0 W W N In V (O W 1 e co V M D O N M I~ In N ~ N ~ In E co co m co In CO M In M O N (O co N e r W O (O O) 0 00 In M O Z In 0') - N M fp" N N (O a) N d) CF) M O (O O 00 V (O M O) V O) V M N V e h M h e V N d) p M N I- p W OO p 00 00 ~p N M O N N 0 (O H N O o 0 0 0 0 0 0 o p c O O N C O -O Q a) V 000 0 M 0 N W I- e 7 CF) M _ > O N O 00 V (O r- N 00 00 d) V O"" r r r 7 rn Z N N 00 O N V V a1 V, d) V, a1 a1 N W In In M M M M O O M ° r 0 00 app O M (O d) V, T O W N (O N (O 0 W W to N N V O V r- In 0 0- p Lo 7 I ~ H 04 04 N m O N O O O O O N e m M 1 O 00 In M N V, N 0 M V i d Q E E 00 00 V M 0') co O (o N M V) (O M M o O O O > > O o N u) u) Lo N W) U N V E V CF) In r, In d) V O O c c W d) o M M 00 00 00 r- In V p N C V, N (O - O N Z d) V W In M M O ~y M h V r- O V O O N M 00 M r V O 00 ' In a to (O ~y 0 r, o O N M (O to d) r 00 V 0 ) (,I V In 0 r N O 0 d) - W H r N O o 0 0 0 0 0 0 o p O = 0 N N 3 p U Q C > 00 0 m O O~ m e co O I- O) E c r- O c 0 0 M co r- co V O m o 0 d) r N M N V (O p N N Z (p W 0) 0 0 0) 0 co 0000000 d) O O ~ N 0 0 0 0 0 0 0 N N N N N N N O O d ~ W ~ co O O W _ O N O H Q '6 Y } ~ W C O N~ ~ N 10 N N N d Q N Q E N C,)} m aQ rnooo U) ;K Lj j n N a 0 U O_ U O C) a 07 ~ C X ~ O O O ` (D O 0 O Z -O O F-: O Q O U J ~ 0] (6 ~ O Q W Z O Q N U a M U H U) T < Q O U) N U ry 0 z A-16 SCHEDULE12 TOWNSHIP OF ORO-MEDONTE EMPLOYMENT TO POPULATION RATIO BY MAJOR EMPLOYMENT SECTOR, 1996 TO 2006 Year Change 1996 2001 2006 96-01 01-06 Comments Employment by industry 1.0 Primary Industry Employment Categories which relate to 1.1 All primary 545 430 210 -115 -220 local land-based resources. Sub-total 545 430 210 -115 -220 2.0 Industrial and Other Employment 2.1 Manufacturing 220 600 730 380 130 Categories which relate 2.2 Wholesale trade 130 115 175 -15 60 primarily to industrial land 2.3 Construction 120 240 300 120 60 supply and demand. 2.4 Transportation, storage. communication and other utility 75 255 200 180 -55 Sub-total 545 1,210 1,405 665 195 3.0 Population Related Employment 3.1 Retail trade 210 270 420 60 150 Categories which relate 3.2 Finance, insurance, real estate operator and insurance agent 60 85 80 25 -5 primarily to population 3.3 Business service 125 305 425 180 120 growth within the 3.4 Accommodation, food and beverage and other service 365 825 910 460 85 municipality. Sub-total 760 1,485 1,835 725 350 4.0 Institutional 4.1 Government Service 80 45 125 -35 80 4.2 Education service. Health. Social Services 595 315 390 -280 75 Sub-total 675 360 515 315 155 Total Employment 2,525 3,485 3,965 960 480 Population 16,698 18,315 20,031 1,617 1,716 Employment to Population Ratio Industrial and Other Employment 0.03 0.07 0.07 0.03 0.00 Population Related Employment 0.05 0.08 0.09 0.04 0.01 Institutional Employment 0.04 0.02 0.03 -0.02 0.01 Primary Industry Employment 0.03 0.02 0.01 0.01 0.01 Total 0.15 0.19 0.20 0.04 0.01 Source: Statistics Canada Employment by Place of Work Note: 1996-2006 employment figures are classified by Standard Industrial Classification (SIC) Code Watson & Associates Economists Ltd. 26/06/2009 H:\Oro-Medonte\2009 DC\Growth\Oro-Medonte Growth Forecast 2009.xlsx APPENDIX B LEVEL OF SERVICE Watson & Associates Economists Ltd. 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V co U N w O N a~ c H CO U) D Cy J N N E O c U W U) a~ m U O N Q ob c 0 B-11 C a5 Y O Q O a) ~ C O V d f0 ~ U O O R o R ~ Q y vii as L H N i) D X X vl X 0 O CL a) ul a) m U N ul Q 06 O ul B-12 (n A) 0) 0) E C '6 0) C E R Q O C O- O O Y (6 O a Z d d t N c O d ~ C O V d f0 ~ U O 0 R 'u O f~0 G CL ~ g m y ~ o t C •v .v ~ Z 0 W U) C O O 0 0 0 0 0 0 3 O 0 0 0 0 0 0 E q q q O g q q > O 0 N u) N O u) 0 00 0 00 0 00 0 00 0 O N ER ER ER ER ER ER ER N N co O O N N N ~ 0 O O N N N ~ (D O O N N N ~ N O O N N N N c 0 O N N N O O N N N O N O O N N N O O O N N N N O O O N N N N O) O) O) Y C O IL U) o a~ Y O O C 7 O ~p d y N a N co co O U m O a~ 2 a~ rn tll a~ Y 'y - w 5 y m s 0) 2i m l U) U 2 CO a > Q 00 O O O O (2 O 00 O O ('41 I: CY) (O 0) O O LO 00 069 O 'IT N 069 O Lo (2 069 O V1 ~2 00 O O A 'IT 0 O O m m C (6 U B-13 ul (6 C a3 N t N Q N O (6 N H ~ Cc: E C a5 ~ Y a) a3 . ~ d J al al t CO c O al ~ C O ~ V al ~a U O ~ o o R a a 3g N as O 0 aa) E H CO U) D 00 3 0 0 M (6 C O Ef3 ER J a) O N 0 0 0 0 O O O O 0 N N 0 O O O O 0 - N N 0 0 0 0 O O O O 0 O - N N N 0 O O co N 0 0 O O 0 co N 0 O O O co co N N N 0 O O 0 co N O O O O 0 O co co N N N 0 O O 0 co N O O O C O 2- O N a~ a3 u- Ll l Q' i J IT N NIP' O N ~IM O ~ N TO O V O N ~ O CO N 06- lz~ C'~ Lo I a ~ (o 'IT oc~ co c I',~ IT (7) 00 LO co M LN co 0 co 'Io Ali a3 c as C O m U X X X O Q N a 0 C) 0 C 0 O O a E 0 W U a o6 C O w B-14 C ~ a) N E E Q Q .3 .3 a W a a) C C a3 a3 N N a) a) U U t t N 1 O (6 O a Z c O a) ~ C O t1 a) R ~ U 0 ~ O R ~ CL 3g CO N a) N ~ O N w 00 aa))'c~ CO U) D Q 0 0 0 0 -Fu E~ > m co cm (0 O 0 Cm (o = 00 M Ef3 M ER 00 ER M ER O N V co O N V r O N V O O N V LO O N V O O N V M O N V O O N V O O N V O O N V Q Q 3 3 U U U d d a3 7 0 C C D Y Q O H O H N a) U d N N ~ C 0 O U ~ N N O N O O 'Q ~ C ) C) CO CO LO N O O O 00 O O O ' , a E 0 Lu m U Q oS C O w B-15 Ul a) U O LL C a3 O 0) (6 a) 0) rn U a) '6 O ~ O 0 C ~ a) a) t N C O a) i6 C O v ~ U o a O f6 O f~0 Q y N as H N U) D N Y 00 Ir 00 (fl (fl m N (0 V m N (0 V V 'IT. 00 00 V U) N (6 O U) ~ 2i 'N V)~V)~V) ER ER ER ER V)'',.ER ER ' 6 O N m 7 O UO M (fl N. M rn N M O) N (fl M (fl O US O O N V): V): ER ER ER ER ER EF)'.. ER ER 0 UO'. (0 O N r- 1-0. 00 O O (O UO O 0) N 00 00 00: UO LO O) CO O O I- v U) (`0 0 p N N ~ N V N O UO (O O N I- O O U) I- O O) 00:0 I0 00 LO LO O O V U) 0 1 0.00 (O N 0) p N 0: UO (0 0 UO O 00:0 0 0 V O N I- O O) 00 lO LO O UO p N N N N V N O 0: UO (O O UO O 00 0'. O O V 0 N I- O I~ d) 00 LO LO O U) p N N N V N 0: UO (0 N I- O O UO O O) 00 0'. 0 00 LO LO 0 V UO 0 O 1-.0.00 (0 - N 0): 00 O I- (`0 p N N N, N ' N c ) O U). (0 O UO O 00 0 O O V 0. N. r- O 0) 00 LO LO O UO p N N ~ N V N ' . 0 U). (0 O UO O 00:00 O V O N I- O I~ O) OO lO LO O UO p N N N V N . O UO (O O N I- O O UO O O) 00 0'. O 00: LO LO O O V UO 0 O_ 00 (O N N N 0) 00 ~ N I- m 0 N ' V 0 O UO (0 O N I- O O UO I- O O) 00:00 OO lO LO ' O O V UO ` 0 l-.0. 00 (0 - N 00 0):- 1- ( 7 p N N N N V N c O: UO: (0 O UO O 00 00 O 0 V 0. N I- O O) 00: UO 0 O UO 0) I- _ O. 00 (O N O) 00 I~ (`0 as' as M' 2 ' E ? a) x 2 2 ~ x EE 3' E E E ~ E'er 3 U 3 _ U' U J X N X O Q a) af a) O U O a) O J N E Mn O U w U) a) m U U) Q 06 U) 9 APPENDIX C LONG TERM CAPITAL AND OPERATING COST EXAMINATION Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc C-1 APPENDIX C - LONG TERM CAPITAL AND OPERATING COST EXAMINATION ANNUAL CAPITAL AND OPERATING COST IMPACT As a requirement of the Development Charges Act, 1997 under subsection 10(2)(c), an analysis must be undertaken to assess the long term capital and operating cost impacts for the capital infrastructure projects identified within the development charge. As part of this analysis, it was deemed necessary to isolate the incremental operating expenditures directly associated with these capital projects, factor in cost saving attributable to economies of scale or cost sharing where applicable, and prorate the cost on a per unit basis (i.e. square foot of building space, per vehicle, etc.). This was undertaken through a review of the Township's 2007 Operating Budget. In addition to the operational impacts, over time the initial capital projects will require replacement. This replacement of capital is often referred to as life cycle cost. By definition, life cycle costs are all the costs which are incurred during the life of a physical asset, from the time its acquisition is first considered, to the time it is taken out of service for disposal or redeployment. The method selected for life cycle costing is the sinking fund method which provides that money will be contributed annually and invested, so that those funds will grow over time to equal the amount required for future replacement. The following factors were utilized to calculate the annual replacement cost of the capital projects (annual contribution = factor X capital asset cost) and are based on an annual growth rate of 2% (net of inflation) over the average useful life of the asset: Lifecycle Cost Factors Asset Average Useful Life (Years) Factor Fire Equipment and Gear 8 0.11651 Rolling Stock 10 0.09133 Fire Vehicles 15 0.05783 Roads 20 0.04116 Parking Spaces 25 0.03122 Parkland Development 30 0.02465 Facilities 40 0.01656 Storm Drainage 80 0.00516 Water and Wastewater 80 0.00516 Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc C-2 Table C-1 depicts the annual operating impact resulting from the proposed gross capital projects at the time they are all in place. It is important to note that, while municipal program expenditures will increase with growth in population, the costs associated with the new infrastructure (i.e. facilities) would be delayed until the time these works are in place. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc C-3 0 0 as U 0 cc 0 F- Q N 0 H w F- L) Q Ca G W w F- 5 Z w CL X W J H a U 0 Z Q 0 z w CL O U) LU F- 5 Z w CL X w J CL U W F LL w O O N In N co O N N C) LO a) O W a O ~ O (O O O O N I~ - O I% N N co I co O co z (O N N z H ao J z a O W O N In 0 N co O N O LO O co 0 ~ 0 0 M O N ~ Id- M O a co CO co O (D a) O I,- 0 a) M O 0 LO LO W a 00 J z a Lu a zX zW a W J O O O O O O O O O O O O O O O O O O O O O cn Cl) O N Cl) O (D Nt co co O 0 W 0 O M I` M N O O W LL H J J Z a Lu IL zx z Lu a ~ O Cl) 0 Nt (o LO O ~ (0 Nt 0 O O co 0 O O (O (O U) V) ~ M ~ N 0 N O M 0 0 M , W 0 O N Nt (o O Nt co O P%- N co co P _ ao O LO co 0 a, P- O co N N I~ N J ~ az W a O 0X W F- 06 L E Q E S W U C S E w -a N a) a) Y CL N a) w O Cn v) E CO LL U) a N C a) = 0 Q = = •U c .0- 0 1E c C O CO c .U m L a) S LU N -0 ca O > O N C "a m O Q O U LL " > " - N E U _ U Y (n Y a) L U O a C O w W 0 d o E E U O d L ca d ca d W a) W = U N a a) V °O T~ o O E_ E O _ ~t LO a) L LL N N N M N p d T7 co z; O - 4 N 4 "a lf) -a Q -7 (O ~ N M ~ Ln tD x x O Q a) O U 0 a) C O a) O O J O C O U W N a) •U O N Q 06 c O N APPENDIX D LOCAL SERVICE POLICY Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc D-1 APPENDIX D - LOCAL SERVICE POLICY TOWNSHIP OF ORO-MEDONTE GENERAL POLICY GUIDELINES ON DEVELOPMENT CHARGE AND LOCAL SERVICE FUNDING FOR ROAD-RELATED, STORMWATER MANAGEMENT, WATER AND SANITARY SEWER WORKS 1. Collector Roads 1.1 Collector roads Internal to development - Direct developer responsibility under s.59 of the DCA (as a local service) 1.2 Roads (collector and arterial) external to development - Include in DC calculation to the extent permitted under s.5(1) of the DCA (dependent on local circumstances) 1.3 Stream crossing and rail crossing road works, excluding underground utilities but including all other works within lands to be dedicated to the Town or rail corridors - include in DC calculation to the extent permitted under s.5(1) of the DCA (dependent on local circumstances). 2. Traffic Signals 2.1 Traffic signalization within or external to development - Include in DC calculation to the extent permitted under s.5(1) of the DCA. In specific cases may be direct developer responsibility. 3. Intersection Improvements 3.1 New roads (collector and arterial) and road (collector and arterial) improvements - Include as part of road costing noted in item 1, to limits of ROW. 3.2 Intersections improvements within specific developments and all works necessary to connect to entrances (private and specific subdivision) to the roadway - Direct developer responsibility under s.59 of DCA (as a local service) Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc D-2 3.3 Intersections with county roads and provincial highways (Hwy. 12) - Include in DC calculation to the extent that they are Town responsibility. 3.4 Intersection improvements on other roads due to development growth increasing traffic - Include in DC calculation. 4. Streetlights 4.1 Streetlights on external roads - Include in area municipal DC (linked to collector road funding source in item 1). 4.2 Streetlights within specific developments - Direct developer responsibility under s.59 of DCA (as a local service). 5. Sidewalks 5.1 Sidewalks on MTO and regional roads - Include in area municipal DC or, in exceptional circumstances, may be local improvement or direct developer responsibility through local service provisions (s.59 of DCA). 5.2 Sidewalks on area municipal roads - Linked to collector road funding source in item 1. 5.3 Other sidewalks external to development (which are a local service within the area to which the plan relates) - Direct developer responsibility as a local service provision (under s.59 of DCA) 6. Bike Routes/Bike Lanes/Bike Paths/Mufti-Use Trails/Naturalized Walkways 6.1 Bike routes and bike lanes, within road allowance, external to development - Include in DC road costs (regional and area municipal), consistent with the service standard provisions of the DCA, s.5(1). 6.2 Bike paths/multi-use trails/naturalized walkways external to development - Include in area municipal DCs consistent with the service standard provisions of the DCA, s.5(1). Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc D-3 6.3 Bike lanes, within road allowance, internal to development - Direct developer responsibility under s.59 of the DCA(as a local service). 6.4 Bike paths/multi-use trails/naturalized walkways internal to development - Direct developer responsibility under s.59 of the DCA(as a local service). 6.5 Trail Bridges/Underpasses and associated works - Include in area municipal DCs consistent with the service standard provisions of the DCA, s.5(1). 7. Noise Abatement Measures 7.1 Internal to Development - Direct developer responsibility though local service provisions (s.59 of DCA) 8. Traffic Control Systems 8.1 Include in DC calculation. 9. Land Acquisition for Road Allowances 9.1 Land Acquisition for arterial roads - Dedication under the Planning Act subdivision provisions (s.51) through development lands; in areas with limited or no development, include in county or area municipal DC (to the extent eligible). 9.2 Land Acquisition for collector roads - Dedication under the Planning Act subdivision provision (s.51) through development lands (up to 27 metre right-of-way); in areas with limited or no development, include in area municipal DC (to the extent eligible). 9.3 Land Acquisition for grade separations (beyond normal dedication requirements) - Include in the DC to the extent eligible. Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc D-4 10. Land Acquisition for Easements 10.1 Easement costs external to subdivisions shall be included in DC calculation. 11. Storm Water Management 11.1 Quality and Quantity Works, direct developer responsibility through local service provisions (s. 59 of DCA). 11.2 Oversizing of stormwater management works for development external to developments will be subject to best efforts clauses by area municipality. 12. Water 12.1 All waterworks within the subdivision development to be direct developer responsibility. 12.2 All upgrades to existing waterworks systems required for increased capacity for either fire flow or domestic use to be direct developer responsibility. 12.3 Watermains external to subdivisions to be direct developer responsibility. 12.4 Pumping stations and works associated with Zone boundaries to be direct developer responsibility 12.5 Connections to trunk mains and pumping stations to service specific areas, to be direct developer responsibility. 13. Sanitary Sewer 13.1 All sanitary sewer works required for the subdivision development shall be direct developer responsibility. 13.2 Pumping stations shall be direct developer responsibility. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc D-5 13.3 Sanitary sewers external to subdivisions shall be direct developer responsibility. 13.4 Connections to trunk mains and pumping stations to service specific areas, to be direct developer responsibility. 13.5 All upgrades to existing sanitary sewer works required for increased capacity for the subdivision development shall be direct developer responsibility. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc APPENDIX E PROPOSED DEVELOPMENT CHARGE BY-LAW Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-1 THE CORPORATION OF THE TOWNSHIP OF ORO-MEDONTE BY-LAW NUMBER 2009- A by-law for the imposition of development charges WHEREAS the Development Charges Act, 1997 c. 27 (hereinafter called "the Act") provides that the council of a municipality may by by-law impose development charges against land for to pay for increased capital costs required because of increased need for services; AND WHEREAS a development charges background study has been completed in accordance with the Act; AND WHEREAS the Council of the Township of Oro-Medonte has given notice and held a public meeting on the 28th day of July, 2009 in accordance with the Act and the regulations thereto; NOW THEREFORE THE COUNCIL OF THE TOWNSHIP OF ORO-MEDONTE ENACTS AS FOLLOWS: 1.0 DEFINITIONS 1.1 In this by-law, (1) "Act" means the Development Charges Act, S.O. 1997, c. 27, as amended, or any successor thereto; (2) "Accessory use" means where used to describe a use, building, or structure, that the use, building or structure is naturally and normally incidental, subordinate in purpose of floor area or both, and exclusively devoted to a principal use, building or structure; Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-2 (3) "Apartment unit" means any residential dwelling unit within a building containing three or more dwelling units where access to each residential unit is obtained through a common entrance or entrances from the street level and the residential units are connected by an interior corridor; (4) "Bedroom" means a habitable room larger than seven square metres, including a den, study, or other similar area, but does not include a living room, dining room or kitchen; (5) "Benefitting area" means an are defined by a map, plan or legal description in a front-ending agreement as an area that will receive a benefit from the construction of a service; (6) "Board of education" means a board defined in subsection 1(1) of the Education Act, or any successor thereto; (7) "Building Code Act" means the Building Code Act, R.S.O. 1990, c.B.-13, as amended, or any successor thereto; (8) "Capital cost" means costs incurred or proposed to be incurred by the municipality or a local board thereof directly or by others on behalf of, and as authorized by, the municipality or local board, (a) to acquire land or an interest in land, including a leasehold interest; (b) to improve land; (c) to acquire, lease, construct or improve buildings and structures; (d) to acquire, lease, construct or improve facilities including, (i) rolling stock with an estimated useful life of seven years or more, (ii) furniture and equipment, other than computer equipment, and Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-3 (iii) materials acquired for circulation, reference or information purposes by a library board as defined in the Public Libraries Act, R.S.O. 1990, c.P.-44; and (e) to undertake studies in connection with any of the matters referred to in clauses (a) to (d); required for the provision of services designated in this by-law within or outside the municipality, including interest on borrowing for those expenditures under clauses (a), (b), (c) and (d) that are growth-related; (9) "Commercial" means any non-residential development not defined under "institutional" or "industrial"; (10) "Council" means the Council of the municipality; (11) "Development" means the construction, erection or placing of one or more buildings or structures on land or the making of an addition or alteration to a building or structure that has the effect of increasing the size or usability thereof, and includes redevelopment; (12) "Development charge" means a charge imposed pursuant to this By-law; (13) "Dwelling unit" means any part of a building or structure used, designed or intended to be used as a domestic establishment in which one or more persons may sleep and are provided with culinary and sanitary facilities for their exclusive use; (14) "Existing industrial building" means a building or buildings existing on a site in the Township of Oro-Medonte on the day this by-law comes into effect or the first building or buildings constructed and occupied on a vacant site pursuant to site plan approval under section 41 of the Planning Act, R.S.O. c.P.13 (the "Planning Act' subsequent to this by-law coming into effect for which full development charges were paid, and is used for or in connection with, Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-4 (i) the production, compounding, processing, packaging, crating, bottling, packing or assembling of raw or semi-processed goods or materials in not less than seventy-five percent of the total gross floor area of the building or buildings on a site ("manufacturing") or warehousing related to the manufacturing use carried on in the building or buildings; (ii) research or development in connection with manufacturing in not less than seventy-five percent of the total gross floor area of the building or buildings on a site; (iii) retail sales by a manufacturer, if the retail sales are at the site where the manufacturing is carried out, such retail sales are restricted to goods manufactured at the site, and the building or part of a building where such retail sales are carried out does not constitute greater than twenty-five percent of the total gross floor area of the building or buildings on the site; or (iv) office or administrative purposes, if they are, (1) carried out with respect to manufacturing or warehousing; and (2) in or attached to the building or structure used for such manufacturing or warehousing; (15) "Grade" means the average level of finished ground adjoining a building or structure at all exterior walls; (16) "Gross floor area" means the total floor area of all floors above grade of a dwelling unit measured between the outside surfaces of exterior walls or between the outside surfaces of exterior walls and the centre line of party walls dividing the dwelling unit from other dwelling units or other portion of a building; In the case of a non-residential building or structure, or in the case of a mixed- use building or structure in respect of the non-residential portion thereof, the total area of all building floors above or below grade measured between the outside surfaces of the exterior walls, or between the outside surfaces of exterior walls and the centre line of party walls dividing a non-residential use and a residential use, except for any of the following: Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-5 i. A room or enclosed area within the building or structure above or below grade that is used exclusively for the accommodation of heating, cooling, ventilating, electrical, mechanical or telecommunications equipment that services the building; ii. Loading facilities above or below grade; iii. A part of the building or structure below grade that is used for the parking of motor vehicles or for storage or other accessory use; (17) "Industrial" means lands, buildings or structures used or designed or intended for use for manufacturing, processing, fabricating or assembly of raw goods, warehousing or bulk storage of goods, and includes office uses and the sale of commodities to the general public where such uses are accessory to an industrial use, but does not include the sale of commodities to the general public through a warehouse club; (18) "Institutional" means lands, buildings or structures used or designed or intended for use by an organized body, society or religious groups for promoting a public or non-profit purpose and shall include, but without limiting the generality of the foregoing, places of worship, and special care facilities; (19) "Local board" has the same definition as defined in the Development Charges Act, S.O. 1997; (20) "Local services" means those services, facilities or things which are under the jurisdiction of the municipality and are related to a plan of subdivision or within the area to which the plan relates in respect of the lands under Sections 41,51 or 53 of the Planning Act R.S.O. 1990, as amended or any successor thereto; (21) "Mobile home" means any dwelling that is designed to be made mobile, and constructed or manufactured to provide a permanent residence for one or more persons, but does not include a travel trailer or tent trailer; (22) "Multiple dwelling" means all dwellings other than single detached dwellings, semi-detached dwellings, and apartment dwellings; Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-6 (23) "Municipality" means The Corporation of the Township of Oro-Medonte; (24) "Non-residential use" means a building or structure of any kind whatsoever used, designed or intended to be used for other than a residential use and includes all commercial, industrial and institutional uses; (25) "Owner" means the owner of land or a person who has made application for an approval for the development of land upon which a development charge is imposed; (26) "Regulation" means any regulation made pursuant to the Act; (27) "Residential use" means lands, buildings or structures of any kind whatsoever used, designed or intended to be used as living accommodations for one or more individuals; (28) "Semi-detached dwelling" means a dwelling unit in a residential building consisting of two dwelling units having one vertical wall or one horizontal wall, but no other parts, attached or another dwelling unit where the residential units are not connected by an interior corridor; (29) "Services" (or "service") means those services set out in Schedule "B" to this By-law; (30) "Servicing agreement" means an agreement between a landowner and the municipality relative to the provision of municipal services to specified lands within the municipality; (31) "Single detached dwelling unit" means a residential building consisting of one dwelling unit and not attached to another structure and includes mobile homes. Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-7 2.0 DESIGNATION OF SERVICES 2.1 The categories of services for which development charges are imposed under this by- law are as follows: (a) Roads and Related (b) Fire Protection Services (c) Police Services (d) Outdoor Recreation Services (e) Indoor Recreation Services (f) Administration 2.2 Components of the services designated in Subsection 2.1 are described in Schedule A". 3.0 APPLICATION OF BY-LAW RULES 3.1 Development charges shall be payable in the amounts set out in this by-law where: a) the lands are located in the area described in Subsection 3.2; and b) the development of the lands requires any of the approvals set out in Subsection 3.4 a). Area to Which By-law Applies 3.1 Subject to Subsection 3.3, this by-law applies to all lands in the geographic area of the Township. 3.2 This by-law shall not apply to lands that are owned by and used for the purposes of: a) the Township of Oro-Medonte or a "local board" thereof; b) a "board of education" as defined in Section 1(1) of the Education Act, R. S.O. 1990; Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-8 Approvals for Development 3.4 a) Development charges shall be imposed on all lands, buildings or structures that are developed for residential or non-residential uses if the development requires, (i) the passing of a zoning by-law or an amendment to a zoning by-law under Section 34 of the Planning Act, R. S. 0. 1990; (ii) the approval of a minor variance under Section 45 of the Planning Act, R. S. O. 1990; (iii) a conveyance of land to which a by-law passed under Subsection 50(7) of the Planning Act, R.S.O. 1990, applies; (iv) the approval of a plan of subdivision under Section 51 of the Planning Act; (v) a consent under Section 53 of the Planning Act; (vi) the approval of a description under Section 50 of the Condominium Act, R.S.O. 1990; or (vii) the issuing of a permit under the Building Code Act S.O. 1990, in relation to a building or structure. b) No more than one development charge for each service designated in Subsection 2.1 shall be imposed upon any lands, buildings or structures to which this by-law applies even though two or more of the actions described in Subsection 3.4(a) are required before the lands, buildings or structures can be developed. C) Despite Subsection 3.4(b), if two or more of the actions described in Subsection 3.4(a) occur at different times, additional development charges shall be imposed if the subsequent action has the effect of increasing the need for services. Exemptions 3.5 Notwithstanding the provisions of this by-law, development charges shall not be imposed with respect to: a) the Township of Oro-Medonte or a "local board" thereof; b) a "board of education" as defined in Section 1(1) of the Education Act, R.S.O. 1990; Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-9 C) an enlargement of the gross floor area of an existing industrial building in accordance with Section 4 of the Act; or d) the issuance of a building permit in accordance with Section 2(3) of the Act. Rules with Respect to an Industrial Expansion Exemption: 3.6.1 Notwithstanding If a development includes the enlargement of the gross floor area of an existing industrial building, the amount of the development charge that is payable in respect of the enlargement is determined in accordance with the following: (i) Subject to subsection 3.6.1 (iii), if the gross floor area is enlarged by 50 per cent or less of the lesser of: 1. the gross floor area of the existing industrial building, or 2. the gross floor area of the existing industrial building before the first enlargement for which: a) an exemption from the payment of development charges was granted, or b) a lesser development charge than would otherwise be payable under this by-law, or predecessor thereof, was paid, pursuant to Section 4 of the Act and this subsection, the amount of the development charge in respect of the enlargement is zero; (ii) Subject to subsection 3.6.1 (iii), if the gross floor area is enlarged by more than 50 per cent or less of the lesser of: 1. the gross floor area of the existing industrial building, or 2. the gross floor area of the existing industrial building before the first enlargement for which: a) an exemption from the payment of development charges was granted, or b) a lesser development charge than would otherwise be payable under this by-law, or predecessor thereof, was paid, pursuant to Section 4 of the Act and this subsection, Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-10 (iii) the amount of the development charge in respect of the enlargement is the amount of the development charge that would otherwise be payable multiplied by the fraction determined as follows: 1. determine the amount by which the enlargement exceeds 50 per cent of the gross floor area before the first enlargement, and 2. divide the amount determined under subsection (A) by the amount of the enlargement (iv) For the purposes of calculating the extent to which the gross floor area of an existing industrial building is enlarged in subsection 3.6.1 (ii), the cumulative gross floor area of any previous enlargements for which: 1. An exemption from the payment of development charges was granted, or 2. A lesser development charge than would otherwise be payable under this by-law, or predecessor thereof, was paid, pursuant to Section 4 of the Act and this subsection, shall be added to the calculation of the gross floor area of the proposed enlargement. (v) For the purposes of this subsection, the enlargement must not be attached to the existing industrial building by means only of a tunnel, bridge, passageway, canopy, shared below grade connection, such as a service tunnel, foundation, footing or parking facility. 3.6.2 For the purpose of section 3.7 herein, "existing industrial building" is used as defined in the Regulation made pursuant to the Act. Amount of Charges Qo~~~on+~~i 3.7 The development charges described in Schedule "B" to this by-law shall be imposed on residential uses of lands, buildings or structures, including a dwelling unit accessory to a non-residential use and, in the case of a mixed use building or structure, on the residential uses in the mixed use building or structure, according to the type of Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-11 residential unit, and calculated with respect to each of the services according to the type of residential use. Non-Residential Uses 3.8 The development charges described in Schedules "B" to this by-law shall be imposed on non-residential uses of lands, buildings or structures, and, in the case of a mixed use building or structure, on the non-residential uses in the mixed use building or structure, and calculated with respect to each of the services according to the gross floor area of the non-residential use. Reduction of Development Charges Where Redevelopment 3.9 Despite any other provision of this by-law, where, as a result of the redevelopment of land, a building or structure existing on the same land within 48 months prior to the date of payment of development charges in regard to such redevelopment was, or is to be demolished, in whole or in part, or converted from one principal use to another principal use on the same land, in order to facilitate the redevelopment, the development charges otherwise payable with respect to such redevelopment shall be reduced by the following amounts: a) in the case of a residential building or structure, or in the case of a mixed-use building or structure, the residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable development charge under Subsection 3.6 and 3.7 and of this by-law by the number, according to type, of dwelling units that have been or will be demolished or converted to another principal use; and b) provided that such amounts shall not exceed, in total, the amount of the development charges otherwise payable with respect to the redevelopment. Time of Payment of Development Charges 3.10 Development charges imposed under this section are payable upon issuance of a building permit with respect to each dwelling unit, building or structure. Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-12 4.0 PAYMENT BY SERVICES 4.1 Despite the payments required under Subsection 3.9, Council may, by agreement, give a credit towards a development charge in exchange for work that relates to a service for which a development charge is imposed under this by-law. 5.0 INDEXING 5.1 Development charges imposed pursuant to this by-law shall be adjusted annually, without amendment to this by-law, commencing on January 1, 2010 and each January 1 annually thereafter, in accordance with the Statistics Canada Quarterly Construction Price Statistics. 6.0 SCHEDULES 6.1 The following schedules to this by-law form an integral part thereof: Schedule "A" Components of Services Designated in Subsection 2.1 Schedule "B" Residential and Non-Residential Development Charges - municipal-wide 7.0 DATE BY-LAW IN FORCE 7.1 This by-law shall come into force upon passage. 8.0 DATE BY-LAW EXPIRES 8.1 This by-law will expire as of 5 years from the date of passage, unless it is repealed at an earlier date. Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-13 9.0 REPEAL 9.1 Upon the coming into force of this by-law, By-law 2004-94 of the Township of Oro- Medonte are hereby repealed. BY-LAW READ A FIRST AND SECOND TIME THIS _T" DAY OF , 2009. BY-LAW READ A THIRD TIME AND FINALLY PASSED THIS _T" DAY OF , 2009. THE CORPORATE OF THE TOWNSHIP OF ORO-MEDONTE MAYOR, H.S. Hughes CLERK, J. Douglas Irwin Watson & Associates Economists Ltd. H:IOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-14 SCHEDULE "A" TO BY-LAW NO. 2009- DESIGNATED MUNICIPAL SERVICES UNDER THIS BY-LAW 1. Roads and Related • Roads, sidewalks, intersections, traffic signals, streetlights • Depots and Domes • Rolling Stock and equipment 2. Fire Protection • Fire Facilities • Fire Vehicles • Small Equipment and Gear 3. Police Services • Police Facilities 4. Outdoor Recreation Services • Parkland Development, Amenities & Trails • Parks Vehicles and Equipment 5. Indoor Recreation Services • Recreation Facilities 6. Administration • Studies Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc E-15 co W a x V H z W m , o a N O p O w W > z W U 3: p co O W m J p W 2 U co J L O co O O O 7 N N M 7 M 7 a O _ U CN O O O O O m - W N p 0- , V L oa ~ Z N w O L Z N Q co LO ~ q-t co N I-- co CD co M I* O r- LO co N c 69- SE 7 ~ p CD O N LO r- O O co I* (A cli bf} O O O O cc cc c w m a am z W N N co co co O M co 0 co W w p ~ + co M LLU E EA M ElT d O E O cc w a 00 co (D co co co LO co O O LO - a) T- ,a _ co co O N M ~ N N CN N cc y 06 a N p D to U_ N U N y U cn U O V d V j> a~ _ 0 c co N co co a) N o co co c y Q' 0 N U U a) a) O , Q O U) L Mn Q O U O O O O O O 7 Q' LL d O Q cC 7 0 H X N X O 75 a cO G U D a) C O i O O J N N E O c O U W co U O N N Q 06 c O N APPENDIX F DEVELOPMENT CHARGE RESERVE FUND POLICY Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc F-1 APPENDIX F - DEVELOPMENT CHARGE RESERVE FUND POLICY FA Legislative Requirements The DCA, 1997 requires development charge collections (and associated interest) to be placed in separate reserve funds. Sections 33 through 36 of the Act provide the following regarding reserve fund establishment and use: • a municipality shall establish a reserve fund for each service to which the DC by-law relates; s.7(1), however, allows services to be grouped into categories of services for reserve fund (and credit) purposes, although only 100% eligible and 90% eligible services may be combined (minimum of two reserve funds); • the municipality shall pay each development charge it collects into a reserve fund or funds to which the charge relates; • the money in a reserve fund shall be spent only for the "capital costs" determined through the legislated calculation process (as per s.5(1) 2-8); • money may be borrowed from the fund but must be paid back with interest (O.Reg. 82/98, s.11(1) defines this as Bank of Canada rate either on the day the by-law comes into force or, if specified in the by-law, the first business day of each quarter); • DC reserve funds may not be consolidated with other municipal reserve funds for investment purposes (s.37). Annually, the Treasurer of the municipality is required to provide Council with a financial statement related to the DC by-law(s) and reserve funds. This statement must also be forwarded to the Minister of Municipal Affairs and Housing within 60 days of the statement being filed with Council. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc F-2 O.Reg. 82/98 prescribes the information that must be included in the Treasurer's statement, as follows: • opening balance; • closing balance; • description of each service and/or service category for which the reserve fund was established; • transactions for the year (e.g. collections, draws); • list of credits by service or service category (outstanding at beginning of the year, given in the year and outstanding at the end of the year by holder); • amounts borrowed, purpose of the borrowing and interest accrued during previous year; • amount and source of money used by the municipality to repay municipal obligations to the fund; • schedule identifying the value of credits recognized by the municipality, the service to which it applies and the source of funding used to finance the credit; and • for each draw, the amount spent on the project from the DC reserve fund and the amount and source of any other monies spent on the project. Based upon the above, Figure F-1 sets out the format for which annual reporting to Council should be provided. F.2 DC Reserve Fund Application Section 35 of the DCA states that: "The money in a reserve fund established for a service may be spent only for capital costs determined under paragraphs 2 to 8 of subsection 5(1)." This provision clearly establishes that reserve funds collected for a specific service are only to be used for that service. Watson & Associates Economists Ltd. HlOro-Medonte12009 DC12009 Oro-Medonte DC Report.doc F-3 Appendix F-1 Development Charge Reserve Fund Township of Oro-Medonte as at December 31, 20OX Roads and Related Fire Protection Services Police Services Outdoor Recreation Services Indoor Recreation Services Administration Total Balance as of January 1, Plus: Development Charge Proceeds Other Accrued Interest Allocation Sub-Total Less: Amounts Transferred to Operating Fund Amounts Transferred to Capital Fund Sub-Total Closing Balance as of December 31, Watson & Associates Economists Ltd. Oro-Medonte DC Model - Report.xlsx F-4 Appendix F-2 SAMPLE DEVELOPMENT CHARGE RESERVE FUNDS STATEMENT Township of Oro-Medonte FOR THE YEAR Town Wide Reserve Fund Roads and Related Fire Protection Services Police Services Outdoor Recreation Services Indoor Recreation Services Administration Balance as of January 1 Plus: Development Charge Collections Accrued Interest Repayment of Monies Borrowed from Fund and Associated Interest SUB-TOTAL Less: Amount Transferred to Capital (or Other) Funds {1} Amounts Refunded Amounts Loaned to Other DC Service Category Credits {2} Monies Borrowed from Fund for Other Municipal Purposes SUB-TOTAL December 31 Closing Balance {1}See Attachment 1 for details QSee Attachment 2 for details Watson & Associates Economists Ltd. Oro-Medonte DC Model - Report.xlsx F-5 Attachment 1 SAMPLE DEVELOPMENT CHARGE RESERVE FUND STATEMENT Township of Oro-Medonte FOR THE YEAR DISCOUNTED SERVICES RESERVE FUND TRANSFERS Capital Project DC Reserve Fund Draw Operating Fund Draw Other Reserves Fund Draw Debt Total Watson & Associates Economists Ltd. Oro-Medonte DC Model - Report.xlsx F-6 Attachment 2 DEVELOPMENT CHARGE RESERVE FUND STATEMENT Township of Oro-Medonte FOR THE YEAR LISTING OF CREDITS UNDER DCA, 1997, s.38 BY HOLDER Credit Holder Applicable DC Reserve Fund Credit Balance - Beginning of Year Additional Credits Granted During Year Credits Used by Holder During Year Credit Balance - End of Year Watson & Associates Economists Ltd. Oro-Medonte DC Model - Report.xlsx Township of OromMedonte Development Charges Public Meeting July 28, 2009 OK Watson & Associates Public Meeting Purpose Q The meeting is a mandatory requirement under the Development Charges Act Prior to Council's consideration of a by-law, a background study must be prepared and available to the public a minimum 14 days prior to a public meeting a Public meeting is to provide for a review of the DC proposal and to receive public input on the proposed policies and charges 1 O' Watson & Associates Format for Public Meeting o DCA Public Meeting Opening remarks Presentation of the proposed policies and charges Questions from Council Presentations by the Public Close Public Meeting 2 O' Watson & Associates Study Process v/ Policy Review and discussions with Staff v/ Growth forecast v/ Detailed discussions with staff regarding future needs to service growth Council Review of DCA Study (July 8, 2009) ~ Report preparation and release to public (July 13, 2009) ,vl Public Meeting (July 28, 2009) o Council Consider By-law for adoption (subsequent to Public Meeting - August 10, 2009) 3 O' Watson & Associates Development Charges Purpose: ❑3 To recover the capital costs associated with residential and non-residential growth within the municipality The capital costs are in addition to what costs would normally be constructed as part of a subdivision (i.e. internal roads, sewers, watermains, roads, sidewalks, streetlights, etc.) o Municipalities are empowered to impose these charges via the Development Charges Act (DCA) 4 OK Watson & Associates Overview of DCA (simplified steps) i. Identify amount, type and location of growth 2. Identify servicing needs to accommodate growth 3. Identify capital costs to provide services to meet the needs 5 O' Watson & Associates Overview of DCA (simplified steps) Deduct: Grants, subsidies and other contributions Benefit to existing development Statutory 10% deduction (soft services) Amounts in excess of 10 year historic service calculation DC Reserve funds (where applicable) 6 OK Watson & Associates Overview of DCA (simplified steps) 5. Net costs then allocated between residential and non-residential benefit Net costs divided by growth to provide the DC r charge 7 O' Watson & Associates Overview of DCA Policy Matters Exemptions: • Mandatory exemptions - for industrial building expansions (may expand by 50% with no DC) - May add up to 2 apartments for a single as long as size of home doesn't double - Add one additional unit in medium & high density buildings - Upper/Lower Tier Governments and School Boards $ O' Watson & Associates Overview of DCA Policy Matters Exemptions: • Discretionary exemptions - Reduce in part or whole DC for types of development or classes of development (e.g. industrial or churches) - May phase-in over time - Redevelopment credits to recognize what is being replaced on site (not specific in the Act but provided by case law) 9 OK Watson & Associates Overview of Oro=Medonte's Existing DCA Exemptions o Board of Education; o Any municipality or local board thereof; Non-residential development 10 O' Watson 8 Associates Growth Forecast Increase The 2009 Development Charge forecast provides for the following growth: Measure 10 Year 2009-2018 20 Year 2009-2028 Build Out 2009-Build Out (Net) Population Increase 1,990 5,128 7,899 Residential Unit Increase 955 2,305 3510 Non-Residential Gross Floor Area Increase (ft2) 235,200 545,100 939700 Source: Watson & Associates Economists Ltd. Forecast 2009 i i O' Watson & Associates 20 Year Housing Forecast 250 206 200 187 153 157 155 150 U) 143 135 135 135 135 135 135 135 135 135 135 135 135 135 O D 119 CY) 4 100 100 100 O O 84 75 75 2 59 53 50 50 50 0 "A" 266 1"~ VO 26"R 266y 2'06 V"*I 26"" V& 26 6 26NN 2612 261 26\R 26N5 `1616 261*, 1111a 26N9 11013 vq2 `LQ•ZL `Lp2'1 `Lp2Q V2y `Lp26 `LpO 11026 Years Historical =Low Density -Historical Average Source: Historical housing activity (1999-2008) based on Statistics Canada building permits, Catalogue 64-001-XIB 12 OK Watson 8 Associates Summary of Services Considered o Municipal Wide Services: Roads and Related Fire Protection Services o Police Services o Outdoor Recreation Services o Indoor Recreation Services o Administration 13 O' Watson 8 Associates Increased Service Needs Attributable to Anticipated Development Increased Service Needs Attributable to Anticipated Development Gross Capital I Less Deductione Cost Estimate Potential DC Recoverable Cost Municipal-wide Services Roads and Related 16, 802, 220 9,976,396 6,825,825 Fire Protection Services 4,680,100 2,360,773 2,319,327 Police Services 1,000,000 853,000 147,000 Outdoor Recreation Services 3,508,000 2,808,366 699,634 Indoor Recreation Services 11,235,000 10,228,272 1,006,728 Administration 345,346 97,225 248,121 Total Municipal Wide Services 37,570,666 26,324,032 11,246,635 * Other Deductions Include: Post Period Benefit, Benefit to Existing Development, Grants, Subsidies and Other Contributions Attributable to New Development (e.g. 10% Statutory Deduction) Watson 8 Associates 14 Review of Calculated Charges RESIDENTIAL NON-RESIDENTIAL Service Single-Detached Apartments - Dwelling & Semi- Apartments - 2 Bachelor & 1 Multiple (per ft2 of Gross Floor Detached Dwelling Bedrooms+ Bedroom Dwellings Area) Municipal-Wide Services: Roads and Related $2,468 $1,562 $1,114 $2,065 $2.08 Fire Protection Services 886 561 400 741 0.51 Police Services 53 34 24 44 0.04 Outdoor Recreation Services 696 440 314 582 0.16 Indoor Recreation Services 1,001 633 452 837 0.22 Administration 215 136 97 180 0.18 Total Municipal-Wide Services $5,319 $3,366 $2,401 $4,449 $3.19 15 O' Watson 8 Associates Comparison of Current and Calculated Charges -Residential Service Current Rate Calculated Rate Difference Municipal Wide Services: Roads and Related $3,500 $2,468 ($1,032) Fire Protection Services $529 $886 $357 Police Services $0 $53 $53 Outdoor Recreation Services $406 $696 $290 Indoor Recreation Services $462 $1,001 $539 Administration $137 $215 $78 Total Municipal Wide Services $5,035 $5,319 $284 16 O' Watson 8 Associates Comparison of Current and Calculated C harges-Non -Residential (per ft2 of Gross Floor Area) Service Current Rate Calculated Rate Difference Municipal Wide Services: Roads and Related $0.00 $2.08 $2.08 Fire Protection Services $0.00 $0.51 $0.51 Police Services $0.00 $0.04 $0.04 Outdoor Recreation Services $0.00 $0.16 $0.16 Indoor Recreation Services $0.00 $0.22 $0.22 Administration $0.00 $0.18 $0.18 Total Municipal Wide Services $0.00 $3.19 $3.19 17 O' Watson 8 Associates Development Charge Rates for Municipalities in the vicinity of Collingwood Single Detached & Semi Detached Dwelling - (As of July 1, 2009) 55,000 52,500 50,000 47,500 45,000 42,500 40,000 37,500 = 35,000 y 32,500 s 30,000 a 27,500 a c 25,000 12 a 22,500 a 20,000 en `m V 17,500 15,000 12,500 10,000 7,500 5,000 2,500 18 0a e-,, ota tito' oya oyas tt e oca '5\ a~e\ \e ' yet s1 SSa e°e Sea gaA e" ' o~n eta acr yak aea °d~ aa Jaa abed tecti a so Fota p°SQta~cp~Q\FNtaGast~ev Oo~oJt~ ap~JOtac~rotap 'Qt°Qo~°taGta~~eta Sesa~age ~Sao~t~O~~eat\~aASr ~et'oGa~o~eLJ~oS°to~See e4- \s~a Sys \Pc Ga ~a G data ° oece ea°~ a~a\a a~ ~a atie teo t\a Q 0110 Pa ea P taa~ot t ata\0 SQ Ot `S Oto Watson & Assoc; iates Note: Clearview, Coll ingwood, Essa, Meaford, Orangeville, Orillia, Oro-Medonte, Penetanguishene, Ramara, Severn and Tay By-laws will expire in 2009. Development Charge Rates for Municipalities in the vicinity of Collingwood Commercial/Retail DC's Per Fully Serviced Ft2. of GFA - (As of July 1, 2009) $24.00 $23.00 $22.00 $21.00 $20.00 $19.00 $18.00 $17.00 $16.00 Q $15.00 LL w $14.00 0 $13.00 LL a $12.00 `w $11.00 CL $10.00 L $9.00 U $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 ~~se ~~JC~a~eoQoSeo~Lca\re~\~~\Sk~~e~~~Sa~at~ ~SS~t\~~aao~ ~pJ~a~ard~~~e~05\eoto~ a~\e~J~ oooaQa~zro ~~e ~~a~a~eaea4ota t¢a~c~ao~~ ~~GJttec~ ~aAS9 Leo t\F Q ado ~~J ota e~S ~a Lea `as dos OY OK aka rot Lo\\\~ \~a Lt ~p e ~e~ SeQ ~O awe e~~ era cc \55 ~a ~r as to ~a ~ti O \ ad? a~SQ~`~~S Qaa\~t~Gr\~ Q~~ t'~~~a~et\P S~ Paa Ne Watson 19 0t Oc~~ ~a~ SQ\ & Associates Note: Clearview,Collingwood, Essa, Meaford, Orangeville, OriIlia, Oro-Medonte, Penetanguishene, Ramara, Severn and Tay By-laws will expire in 2009. Development Charge Rates for Municipalities in the vicinity of Collingwood Industrial DC's Per Fully Serviced Ft'. of GFA - (As of July 1, 2009) $14.00 $13.00 $12.00 $11.00 $10.00 Q $9.00 LL $8.00 0 LL a $7.00 W CL $6.00 v en r $5.00 U $4.00 $3.00 $2.00 $1.00 $0.00 Ne d of ~osea\o~s \to~a~~ e~~aao~~Se~ec oJ~ FSS ~ 0o '0 -,e iS o l` 'o ao~ o<oo~~ageao`0a ~~ooa ~aSoJOa QP o'ea`\aoG~~te~~ fee Qk° met\F aka She C?a c~e~ Las ~rot~c,\~ 4ro Sao CkGa~Q a"~os q' Lai Lo~\O4eaa`ga~\SeQ ~e~ eSC yea, ~a t\P eQ9 r`°~ aka s1 ~~e" teak ct\e eao aa~otd Se~ata S~t\~~ S k\~~~atie Q ata\1zkec, P ok ~e60 Qa ga of Ope Watson B.Asso fates 20 0 Note: Clearview,Collingwood,Essa,Innisfil,Meaford,Orangeville,Orillia,Oro-Medonte,Penetanguishene,Ramara, Severn and Tay By-laws will expire in 2009. I. Next Steps Based upon input received from the public, Council will consider adoption of a by-law 21 O' Watson 8 Associates