2011 Wainfleet Development Charge Report

TOWNSHIP OF WAINFLEET

2011 DEVELOPMENT CHARGE BACKGROUND STUDY

JUNE 9, 2011

Watson & Associates Economists Ltd. H:\Wainfleet\2011 DC\2011 Wainfleet DC Report.doc

CONTENTS Page

EXECUTIVE SUMMARY (i) 1. INTRODUCTION 1.1 Purpose of this Document 1-1 1.2 Summary of the Process 1-1 2. CURRENT TOWNSHIP OF WAINFLEET POLICY 2.1 Introduction 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

WAINFLEET 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 4-5 4.6 Eligible Debt and Committed Excess Capacity 4-6 4.7 Existing Reserve Funds 4-6 4.8 Deductions 4-7 4.8.1 Reduction Required by Level of Service Ceiling 4-7 4.8.2 Reduction for Uncommitted Excess Capacity 4-7 4.8.3 Reduction for Benefit to Existing Development 4-8 4.8.4 Reduction for Anticipated Grants, Subsidies and Other Contributions 4-8 4.8.5 The 10% Reduction 4-9 5. NEED FOR SERVICE, DEDUCTIONS AND ALLOCATIONS 5.1 Capital Cost Estimates 5-1 5.2 The Level of Service Cap 5-2 5.3 Uncommitted Excess Capacity 5-3 5.4 Post Period Capacity 5-3 5.5 Benefit to Existing Development 5-5 5.6 Grants, Subsidies and Other Contributions 5-6 5.7 The 10% Reduction 5-7 5.8 Residential and Non-Residential Allocations 5-7 5.9 Determination of the Charge 5-8 5.10 Long Term Capital and Operating Cost Examination 5-9


CONTENTS Page

6. DEVELOPMENT CHARGE CALCULATION 6-1 7. DEVELOPMENT CHARGE POLICY RECOMMENDATIONS AND DEVELOPMENT CHARGE BY-LAW RULES 7.1 Introduction 7-1 7.2 Development Charge By-Law Structure 7-1 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 7-2 7.3.3 Application to Redevelopment of Land (Demolition and Conversion) 7-3 7.3.4 Exemptions (full or partial) 7-3 7.3.5 Phasing in 7-3 7.3.6 Timing of Collection 7-4 7.3.7 Indexing 7-4 7.4 Other Development Charge By-Law Provisions 7-4 7.4.1 Categories of Services for Reserve Fund and Credit Purposes 7-4 7.4.2 By-law In-force Date 7-4 7.4.3 Minimum Interest Rate Paid on Refunds and Charges for Inter-Reserve Fund Borrowing 7-4 7.5 Other Recommendations 7-5 8. 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 8-2 8.3.1 Introduction 8-3 8.3.2 Notice of Passage 8-3 8.3.3 By-law Pamphlet 8-3 8.3.4 Appeals 8-4 8.3.5 Complaints 8-4 8.3.6 Credits 8-4 8.3.7 Front-Ending Agreements 8-4 8.3.8 Severance and Subdivision Agreement Conditions 8-5


CONTENTS

Page APPENDICES A BACKGROUND INFORMATION ON RESIDENTIAL AND NON-RESIDENTIAL GROWTH FORECAST A-1 B SERVICE LEVELS AND CAPITAL COSTS BY SERVICE B-1 C LOCAL SERVICE POLICY C-1 D LONG TERM CAPITAL AND OPERATING COST EXAMINATION D-1 E PROPOSED DEVELOPMENT CHARGE BY-LAW E-1 F DEVELOPMENT CHARGE RESERVE FUND POLICY F-1 G COMPARISON WITH DEVELOPMENT CHARGES ELSEWHERE G-1


EXECUTIVE SUMMARY

(i)


EXECUTIVE SUMMARY 1. The report provided herein represents the Development Charge Background Study for

the Township of Wainfleet 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);

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 charges for

soft services is based (outdoor recreation, indoor recreation, library services and administration) projects the following population, housing and non-residential floor area for the ten-year (2011-2021) period. Services related to a highway, other transportation services and fire protection utilize a longer municipal-wide forecast from 2011 to 2031.

(ii)


The 2011 Development Charge forecast provides for the following growth:

10 Year 20 Year

2011-2020 2011-2030

(Net) Population Increase 595 1,147

Residential Unit Increase 270 525

Non-Residential Gross Floor Area Increase (ft²) 40,900 80,950

Source: Watson & Associates Economists Ltd. Forecast 2011

Measure

4. The Township does not currently have a development charge by-law in place. The Township is undertaking a development charge public process and anticipates passing a new by-law this year. The mandatory public meeting will be June 28, 2011, with adoption of the by-law anticipated subsequently.

5. This report has undertaken a development charge calculation based on future identified needs (presented in Schedule ES-1) and has been provided on a municipal-wide basis for services related to a highway, other transportation services, fire protection services, outdoor recreation services, indoor recreation services, library services and administration studies. The corresponding single detached dwelling unit charge for the municipal-wide services is $6,714. The calculated non-residential development charge for municipal-wide services is $3.96 per ft² of gross floor area.

6. 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 5,583,626$ Less:Benefit to existing development 2,976,900$ Post planning period benefit 1,368,693$ Ineligible re: Level of Service -$ Mandatory 10% deduction for certain services 51,995$ Grants, subsidies and other contributions -$ Net Costs to be recovered from development charges 1,186,038$

Hence, $4.40 million (or an annual amount of $880,000) will need to be contributed from taxes and rates, or other sources.

(iii)


Based on the above capital listing, the Township plans to spend $5.58 million over the next five years, of which $1.19 million (21%) is recoverable from development charges. Of this net amount, $1.08 million is recoverable from residential development and $0.11 million from non-residential development. It is noted also that any exemptions or reductions in the charges would reduce this recovery further.

7. 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 services related to a highway, other transportation services and fire protection services, are calculated based on a 20-year forecast. All other municipal-wide services, which include outdoor recreation services, indoor recreation services, library services and administration studies, are calculated based on a 10-year forecast. Council will consider the findings and recommendations provided in the report and, in conjunction with public input, approve such policies and rates it deems appropriate. These directions will refine the draft 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; • 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);

• consider phasing in the charge over a period of time; 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).

(iv)


TABLE ES-1TOWNSHIP OF WAINFLEET

SCHEDULE OF DEVELOPMENT CHARGES

NON-RESIDENTIAL

Single and Semi-Detached Dwelling

Apartments - 2 Bedrooms +

Apartments - Bachelor and 1

BedroomOther Multiples

Special Care/Special

Dwelling Units

(per ft² of Gross Floor Area)

Municipal Wide Services:

Roads and Related 2,671 1,572 1,034 1,792 896 2.08

Fire Protection Services 770 453 298 516 258 0.59

Outdoor Recreation Services 622 366 241 417 209 0.22

Indoor Recreation Services 1,681 989 651 1,128 564 0.58

Library Services 493 290 191 331 165 0.17

Administration 477 281 185 320 160 0.32

Total Municipal Wide Services 6,714 3,951 2,600 4,504 2,252 3.96

Service

RESIDENTIAL


1. INTRODUCTION

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 Wainfleet. The Township retained Watson & Associates Economists Ltd. (Watson) to undertake the Development Charges (DC) Background Study process in 2011. 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.

1.2 Summary of the Process The public meeting required under section 12 of the Development Charges Act, 1997, has been scheduled for June 28, 2011 in the Township of Wainfleet Council Chambers. Its purpose is to present the study to the public and to solicit public input. The meeting is also being held to

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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 June 13, 2011. 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, 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.

1-3


FIGURE 1-1 SCHEDULE OF KEY DEVELOPMENT CHARGE PROCESS DATES

FOR THE TOWNSHIP OF WAINFLEET

1. Data collection Early 2011

2. Preparation of draft study May, 2011

3. Review of draft study with Staff Early June 2011

4. Public Meeting Ad placed in newspaper(s) June 7, 2011

5. Background Study and proposed by-law available to public June 13, 2011

6. Public meeting of Council June 28, 2011

7. Deadline for comments and submissions from the public To be Determined

8. Council considers adoption of Background Study and passage of by-law

Subsequent to public meeting

9. Newspaper notice given of by-law passage By 20 days after

passage

10. Last day for by-law appeal 40 days after passage

11. Township makes available pamphlet (where by-law not appealed)

By 60 days after in force date


2. CURRENT TOWNSHIP OF WAINFLEET POLICY

2-1


2. CURRENT TOWNSHIP OF WAINFLEET POLICY

2.1 Introduction The Township of Wainfleet does not currently have a development charge by-law in place; however, the development within the Township is responsible to pay development charges as per the Region of Niagara’s development charge by-law. Table 2-1 provides a summary of the Region’s development charges in effect as of September 1, 2010:

Table 2-1 Region of Niagara Development Charges

Residential Charge per Dwelling Unit

Single Detached 8,308$ Other Multiple 5,868$ Apartment / Lodging Unit 4,890$

Non-residential per Square Foot of Gross Floor Area

Industrial 2.20$ Non-residential (excluding Industrial) 7.82$

All of the lower tier municipalities in Niagara Region, with the exception of St. Catharines, have a local development charge by-law in place. The land use definitions from most of the local municipalities in Niagara Region differ slightly from the Region’s definitions, specifically:

• Single detached units include semi-detached units; • Apartments are differentiated by size or by number of bedrooms; and • Uniform non-residential charge for all types of non-residential development.

2.2 Services Covered The following are examples of municipal-wide services covered under Niagara Region local municipality development charge by-laws:

• Services Related to a Highway; • Other Transportation Services; • Fire Protection Services; • Outdoor Recreation Services;

2-2


• Indoor Recreation Services; • Library Services; • Parking Services; • Administration; • Wastewater Services; • Water Supply Services; • Storm Water Drainage and Control Services.

2.3 Timing of DC Calculation and Payment Most development charges for Niagara Region local municipalities are calculated and payable upon issuance of a building permit with respect to each dwelling unit, building or structure.

2.4 Indexing The Development Charges Act, 1997 permits a development charge by-law to include a provision for indexing the charges in accordance with the Statistics Canada Quarterly Construction Price Statistics. All of the lower tier development charge by-laws include indexing provisions on an annual basis. For most of these, the indexing is automatic; however, Pelham provides for discretionary indexing as opposed to mandatory. 2.5 Redevelopment Credit Municipalities often provide credits where existing development is being demolished and replaced, or being converted from one use to another. Redevelopment credits are provided in all of the other Niagara Region local municipalities with a development charge by-law. For the majority of these municipalities, the redevelopment credit is restricted to demolitions that occur within five years of application of a building permit. The redevelopment credit in Port Colborne is restricted to demolitions/conversions within 12 months to the date of payment of development charges. For Grimsby, a credit is given for a demolition only if the building permit to construct the new building has been issued within 48 months of the date of demolition.

2.6 Exemptions A development charge by-law may provide for an exemption for certain types of development provided that any resulting shortfall in revenue cannot be made up by imposing higher charges on other types of development. Some of the exemptions set out in Niagara Region lower tier DC by-laws include:

2-3


(a) agricultural/farm buildings (all Niagara municipalities, with the exception of

Welland); (b) places of worship (all Niagara municipalities, with the exception of Grimsby,

Port Colborne and Welland); (c) cemeteries (Fort Erie, Lincoln, Niagara-on-the-Lake); (d) downtown areas (full exemption - Fort Erie, partial exemption - Niagara Falls,

Pelham, Port Colborne, Thorold, Welland); (e) parking garage (Niagara Falls); (f) conservation authority (Fort Erie); (g) public hospitals (Pelham, Thorold); (h) granny flats/garden suites (Niagara Falls, Pelham); (i) brownfields (full exemption - Pelham, partial exemption - Niagara Falls,

Welland); (j) Municipal housing facilities (Niagara Falls); (k) industrial (Welland, partial exemption - Port Colborne); (l) institutional (Fort Erie); (m) university/college (Welland); (n) seasonal/temporary structure (Welland); (o) accessory structures (partial exemption - Grimsby); (p) affordable housing/non-profit (Niagara-on-the-Lake, Welland, West Lincoln,

Pelham); and (q) tourist attraction/recreational facility (Fort Erie).


3. ANTICIPATED DEVELOPMENT IN THE


3-1


3. ANTICIPATED DEVELOPMENT IN THE TOWNSHIP OF WAINFLEET

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 Wainfleet will be required to provide services over a 5-year (mid 2011-mid 2016), 10-year (mid 2011-mid 2021) and buildout time horizon. For planning and development purposes, buildout was established as the long-term horizon.

3.2 Basis of Population, Household and Non-Residential Gross Floor Area Forecast

In compiling the growth forecast for the Township of Wainfleet, the following report was consulted:

• The Regional Municipality of Niagara Growth Management Study (GMS): A Preferred Growth Option for Niagara Phase 3 and 4 Report, Final Draft, December 2008. The Niagara GMS (Niagara 2031) was approved by the Niagara Region Committee of the Whole on February 10, 2009.

• Township of Wainfleet Official Plan Review – Recommended Official Plan. On September 14, 2010, Township Council gave third party reading to a by-law to adopt a new Official Plan for the Township of Wainfleet. The new Plan has been forwarded to the Region of Niagara as the Approving Authority.

In addition to reviewing the above-mentioned document, 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 and other potential

housing supply on vacant lands by dwelling type and location;

3-2


• 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 permanent population is anticipated to reach 6,993 by 2016, 7,328 by 2021 and 7,880 at 2031, resulting in an increase of 1,147 persons from mid 2011 to 2031. Existing seasonal dwellings were also added to the residential growth forecast based on a review of current Municipal Property Assessment Corporation (MPAC) data. The seasonal population was adjusted by 50% to account for the nature of such households and their resulting impacts on historical service levels. 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), 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) units. 2. Geographic Location, Appendix A – Schedule 6, Map 3-1

• Schedule 6 summarizes developable housing supply for Wainfleet by stage of development and location. In accordance with available supply and anticipated demand, and residential building permit activity over the past five years, housing and population growth is generally directed to the following areas over the forecast period:

Area % Lakeshore Residential 29% Hamlet Areas 1 70% Rural/Agricultural 1% Sub-total 100%

The hamlet areas include Burnaby, Ostryhon Corners, Hendershot Corners, Winger, Chambers Corners, Becketts Bridge and Wellandport (refer to Map 3-1).

3-3


FIGURE 3-1 POPULATION AND HOUSEHOLD PROJECTION MODEL

3-4


TABLE 3-1

Singles & Semi's (Low

Density)

Townhomes (Medium Density)

Apartments (High

Density)Other

Total Permanent Households

Seasonal Households

Total Households (Seasonal + Permanent)

Person Per Unit (PPU) (Permanent

Housing Units)

Mid 1996 6,253 7,181 2,040 25 35 40 2,140 507 2,647 2.92Mid 2001 6,258 7,186 2,150 20 35 20 2,225 507 2,732 2.81Mid 2006 6,601 7,529 2,275 30 30 45 2,380 507 2,887 2.77Mid 2011 6,733 7,661 2,347 30 30 45 2,452 507 2,959 2.75Mid 2016 6,993 7,921 2,467 30 30 45 2,572 507 3,079 2.72Mid 2021 7,328 8,256 2,617 30 30 45 2,722 507 3,229 2.69Mid 2026 7,593 8,521 2,752 30 30 45 2,857 507 3,364 2.66Mid 2031 7,880 8,808 2,872 30 30 45 2,977 507 3,484 2.65

Mid 1996 - Mid 2001 5 5 110 -5 0 -20 85 0 85Mid 2001 - Mid 2006 343 343 125 10 -5 25 155 0 155Mid 2006 - Mid 2011 132 132 72 0 0 0 72 0 72Mid 2011 - Mid 2016 261 261 120 0 0 0 120 0 120Mid 2011 - Mid 2021 595 595 270 0 0 0 270 0 270Mid 2011 - Mid 2026 860 860 405 0 0 0 405 0 405Mid 2011 - Mid 2031 1,147 1,147 525 0 0 0 525 0 525

Source: Watson & Associates Economists Ltd., April, 2011Derived from Niagara Growth Management Strategy, December, 2008.1. Population excludes net Census Undercount of approximately 4%.

TOWNSHIP OF WAINFLEETRESIDENTIAL GROWTH FORECAST SUMMARY

Permanent Population1Year

Housing UnitsPermanent

Population + 50% Seasonal

Population Equivalent

3-5


MAP 3-1

3-6


3. Planning Period

• Both short- and longer-term time horizons (5-year, 10-year and 20-year) 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 and fire protection services utilize a longer planning period.

4. Population in New Units (Appendix A - Schedules 2 through 5)

• The number of housing units to be constructed in Wainfleet during the short, medium and long term period is presented on Schedule 1 (an average of approximately 26 housing units per annum from 2011 to 2031).

• 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 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:

o Low-density: 3.28

5. Existing Units and Population Change (Appendix A - Schedules 2 through 6)

• Existing households for mid 2011 are based on the 2006 Census households plus estimated residential units constructed between mid 2006 and mid 2011, assuming a six month lag between construction and occupancy (see Schedule 7).

• The decline in average occupancy levels for existing housing units is 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 a municipality divided by the number of

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residents. Key employment sectors include primary, industrial, commercial/ population related, institutional and work at home.

• 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:

o 115 primary (8.9%); o 495 work at home employment (38.1%); o 315 industrial (24.2%); o 250 population related or commercial (19.2%); and o 125 institutional (9.6%).

• This provides a total employment figure (excluding No Fixed Place of Work) of

1,300 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 1,418 by mid 2021 and 1,494 by 2031. This represents and employment increase of 137 from 2011 to 2031.

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:

o 1,000 sq.ft per employee for industrial; o 550 sq.ft per employee for commercial; and o 700 sq.ft. per employee for institutional employment.

• The forecast incremental Gross Floor Area (GFA) increase for the municipality is

40,900 over the 10-year projection period, and 80,950 sq.ft. from 2011 to 2031.

• The incremental GFA forecast by sector from 2011 to 2031 is as follows:

o Industrial: 61.1% o Commercial/population related: 17.5%; and o Institutional 21.4%.


4. THE APPROACH TO CALCULATION OF THE CHARGE

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. Some of the need for services generated by additional development consists of local services related to a plan of subdivision. As such, they will be required as a condition of subdivision agreements or consent conditions. The Township of Wainfleet uses the local service guidelines provided in Appendix C.

4-2


Figure 4-1 The Process of Calculating A Development Charge Under the

DCA,1997

AnticipatedDevelopment

1.2

Estimated Increase in Need For Service

1.3 Ineligible Services

Ceiling Re:Increased Need

Needs That WillBe Met

Examination of the Long Term Capital and Operating Costs

For Capital Infrastructure

DC Needs By Service

Less: Uncommitted Excess Capacity

Less: Benefit To Existing Devpt.

Less: Grants, Subsidies and Other Contributions

Less: 10% Where Applicable

DC By-law(s) Spatial Applicability

DC Net Capital CostsCosts for new development vs.

existing development for the term of the by-law and the balance

of the period

Amount of the ChargeBy Type of Development

(including apportionment of costs - residential and non-residential)

Financing, Inflation and Investment

Considerations

1.4 1.5

1.6

1.7

1.10

1.11

1.12

1.13

1.15

1.17

1.14

1.16

1.9

Tax Base, User Rates,

Etc

Subdivision Agreements and Consent Provisions

1.8 Specified Local Services

Consideration of exemptions, phase-ins, etc.

1

4

3

2

4-3


TABLE 4-1 CATEGORIES OF MUNICIPAL SERVICES

TO BE ADDRESSED AS PART OF THE CALCULATION

CATEGORIES OF MUNICIPAL SERVICES

ELIGIBILITY FOR

INCLUSION IN THE DC

CALCULATION (see legend

below)

SERVICE COMPONENTS

MAXIMUM POTENTIAL

DC RECOVERY

%

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

1. Services Related to a Highway

Yes Yes No Yes Yes

1.1 Arterial roads 1.2 Collector roads 1.3 Local municipal roads 1.4 Traffic signals 1.5 Sidewalks and streetlights

100 100

0 100 100

2. Other Transportation Services

n/a n/a n/a n/a Yes Yes n/a n/a

2.1 Transit vehicles 2.2 Other transit infrastructure 2.3 Municipal parking spaces - indoor 2.4 Municipal parking spaces - outdoor 2.5 Works Yards 2.6 Rolling stock1 2.7 Ferries 2.8 Airport facilities

90 90 90 90

100 100

90 90

3. Storm Water Drainage and Control Services

n/a n/a n/a

3.1 Main channels and drainage trunks 3.2 Channel connections 3.3 Retention/detention ponds

100 100 100

4. Fire Protection Services

Yes Yes Yes

4.1 Fire stations 4.2 Fire pumpers, aerials and rescue vehicles 4.3 Small equipment and gear

100 100 100

5. Outdoor Recreation Services (i.e. Parks and Open Space)

Ineligible Yes Yes n/a Yes Yes

5.1 Acquisition of land for parks, woodlots and ESAs 5.2 Development of area municipal parks 5.3 Development of district parks 5.4 Development of Region-wide parks 5.5 Development of special purpose parks 5.6 Parks rolling stock1 and yards

0 90 90 90 90 90

6. Indoor Recreation Services

Yes

Yes

6.1 Arenas, indoor pools, fitness facilities, community centres, etc. (including land)

6.2 Recreation vehicles and equipment1

90

90

7. Library Services Yes Yes

7.1 Public library space (incl. furniture and equipment) 7.2 Library materials

90 90

8. Electrical Power Services

Ineligible Ineligible Ineligible

8.1 Electrical substations 8.2 Electrical distribution system 8.3 Electrical system rolling stock1

0 0 0

1with 7+ year life time *same percentage as service component to which it pertains computer equipment excluded throughout

4-4


CATEGORIES OF MUNICIPAL SERVICES

ELIGIBILITY FOR

INCLUSION IN THE DC

CALCULATION (see legend

below)

SERVICE COMPONENTS

MAXIMUM POTENTIAL

DC RECOVERY

%

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

9. Provision of Cultural, Entertainment and Tourism Facilities and Convention Centres

Ineligible

Ineligible

9.1 Cultural space (e.g. art galleries, museums and theatres)

9.2 Tourism facilities and convention centres

0

0

10. Waste Water Services n/a n/a n/a n/a

10.1 Treatment plants 10.2 Sewage trunks 10.3 Local systems 10.4 Vehicles and equipment

100 100

0 100

11. Water Supply Services n/a n/a n/a

11.1 Treatment plants 11.2 Distribution systems 11.3 Local systems

100 100

0

12. Waste Management Services

Ineligible

Ineligible Ineligible

12.1 Collection, transfer vehicles and equipment 12.2 Landfills and other disposal facilities 12.3 Other waste diversion facilities

0

0 0

13. Police Services n/a n/a n/a

13.1 Police detachments 13.2 Police rolling stock1 13.3 Small equipment and gear

100 100 100

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

18. Ambulance n/a n/a

18.1 Ambulance station space 18.2 Vehicles1

90 90

19. Hospital Provision Ineligible 19.1 Hospital capital contributions

20. Provision of Headquarters for the General Administration of Municipalities and Area Municipal Boards

Ineligible Ineligible Ineligible

20.1 Office space (all services) 20.2 Office furniture 20.3 Computer equipment

0 0 0

21. Other Services Yes

n/a

21.1 Studies in connection with acquiring buildings, rolling stock, materials and equipment, and improving land2 and facilities, including the DC background study cost 21.2 Interest on money borrowed to pay for growth-related capital

0-100

0-100

______________________________________

1with a 7+ year life time 2same percentage as service component to which it pertains

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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.

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.

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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.

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).

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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. 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

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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 service 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 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

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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.


5. NEED FOR SERVICE, DEDUCTIONS AND

ALLOCATIONS

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5. NEED FOR SERVICE, DEDUCTIONS AND ALLOCATIONS

5.1 Capital Cost Estimates The calculation of a development charge begins with the identification of capital works required to meet the need of the development forecast in Chapter 3. These costs are subject to a number of deductions to arrive at a net DC recoverable cost. Moreover, the net growth-related capital costs must be allocated between residential and non-residential development in determining the charge. These deductions and allocations are identified in further detail below. The capital costs determined in Appendix B in accordance with s.s.5(1) of the Development Charges Act, 1997 reference projects as part of defining the increase in the need for service. It is anticipated that a number of such projects will evolve over time in response to the specific needs of new development. As a result, the cost, timing and nature of such projects may be altered as part of the Township’s annual capital budgetary process. It is intended that development charge draws will be made for such projects, based on the development-related percentages which have been identified. For the following services, capital costing of actual projects has been provided in Appendix B: Roads – The Township provides road improvements which will have a minor benefit to new growth. The gross capital costs of these improvements are the annual operating costs from the Township’s 2011 Operating Budget applied over a twenty year period:

• Patching & Spraying $1.40 million (i.e. $70,000 X 20 years); • Resurfacing $4.92 million; • Grading $0.98 million; • Gravel $3.90 million.

Fire – The Township has identified the need to construct a new station, in part to replace Stations #1 and 2. The gross capital cost of this project is estimated to be $1.6 million. Three vehicles and auto extrication equipment have been added to the capital forecast, as well as two fire tankers and a pick-up truck, with a total gross cost of $605,000. Finally, new S.C.B.A equipment at a cost of $33,000 has been added to the fire capital program. Administration Studies - The listing of studies included in the DC is as follows:

• Development Charges Studies (2); • Site Plan; • Zoning By-law.

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The gross capital cost of these projects is $210,000. For the remaining services (parkland, indoor recreation, domes/depots, road related vehicles and libraries) the provision of service units has been used to determine the capital costs.

5.2 The Level of Service Cap Paragraph 4 of subsection 5(1) of the DCA, 1997 states that the estimate of the increase in the need for service attributable to the anticipated development, made under paragraph 2, must not include an increase that would result in the level of service exceeding the average level provided in the Township over the 10-year period preceding the preparation of the background study. s.s.4(3) of O.Reg. 82/98 provides for an exception, such that:

“If the average level of service determined is lower than the standard level of service required under another Act, the standard level of service required under the other Act may be deemed ... to be the average level of service.”

Section 4 of the Regulation also provides that:

• both the quantity and quality of a service shall be taken into account in determining the average level of service. A commonly-used quantity measure is units per capita (e.g. lane kms, square feet, m3 capacity, hectares, etc.), while quality can be measured in terms of cost per unit, engineering standards or recognized performance measurement systems, depending on circumstances;

• a geographic area of the municipality may be excluded in determining the average level of service, if the service is not provided there and the area is identified in the by-law. However, the average level of service so determined cannot exceed that which would be determined if the by-law applied to the whole municipality.

These service level calculations are provided in Appendix B and are summarized in Table 5-1 below:

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TABLE 5-1 SUMMARY OF HISTORIC LEVEL OF SERVICE BY SERVICE CATEGORY

Cost (per capita)

Roads $5,644.00 0.0684 lane km of roadways 82,515 per lane km 6,473,668$

Sidewalks and Streetlights $42.00 0.0269 km of roadways 1,561 per km 48,174

Depots and Domes $155.35 1.9112 ft² of building area 81 per ft² 178,186

Roads and Related Vehicles $340.30 0.0033 No. of vehicles and equipment 103,121 per vehicle 390,324

Fire Facilities $125.19 0.7593 ft² of building area 165 per ft² 143,593

Fire Vehicles $241.08 0.0011 No. of vehicles 219,164 per vehicle 276,519

Fire Small Equipment and Gear $28.57 0.0066 No. of fully equipped firefighters / equipment 4,329 per Firefighter 32,770

Parkland Development $286.86 0.0064 No. of developed parkland acres 44,822 per acre 170,682

Parkland Amenities $43.07 0.0007 No. of parkland amenities 61,529 per amenity 25,627

Indoor Recreation Facilities $891.45 4.4382 ft² of building area 201 per ft² 530,413

Library Facilities $109.48 0.5732 ft² of building area 191 per ft² 65,141

Library Collection Materials $152.16 4.2096 No. of library collection items 36 per collection item 90,535 Library

Roads and Related

10 Year Average Service Standard

Quality (per capita)Quantity (per capita)Service Category Sub-Component

Recreation

Fire

Parks

Max. Ceiling Level of Service

5.3 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,” i.e. where Council has indicated a clear intention that it would be paid for by DCs or other similar charges, before or at the time it was created. “Excess capacity” is undefined in the Act, 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 “excess capacity” from the future increase in the need for service, would normally occur as part of the conceptual planning and feasibility work associated with justifying and sizing new facilities, e.g. if a road widening to accommodate increased traffic is not required because sufficient capacity is already available, then that widening would not be included as an increase in need, in the first instance. Another potential consideration is the relationship between the 2010 level of service and the ten-year historical average or an operational review of the functioning of a particular facility. Where an explicit excess capacity deduction is required from a proposed project, provision will be made in the infrastructure cost tables in Appendix B.

5.4 Post Period Capacity In some cases, capital infrastructure is designed and constructed to meet the needs of growth beyond the planning period for a particular service. For example, a recreation facility to be constructed toward the end of the DC planning period may be sized to accommodate a larger

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population. In this case, it is appropriate to remove the costs related to providing this additional capacity. A deduction for post period capacity would not be applicable for services that are constrained by the historic service level cap as the DC eligible amount is applicable only to growth within the ten-year period. The assumptions made in this background study, with respect to post-period (beyond 2031) capacity that is being provided but is deducted as part of this DC calculation, is set out in Table 5-2. Growth-related costs benefiting development beyond the respective forecast period are expected to be recovered from development in subsequent years based on Council’s approval of the 2011 DC Background Study and this recommendation which forms part of it.

TABLE 5-2 SUMMARY OF DEDUCTIONS FOR POST PERIOD CAPACITY

Roads n/a - meets 10 yr. level of service only

Sidewalks and Streetlights n/a - meets 10 yr. level of service only

Depots and Domes n/a - meets 10 yr. level of service only

Roads and Related Vehicles n/a - meets 10 yr. level of service only

Fire Facilities $1,056,500 - New Station

Fire Vehicles $328,481 - 2 tankers ($123,400 each), pickup truck ($16,000), & auto extraction equip ($13,700)

Fire Small Equipment and Gear n/a - meets 10 yr. level of service only

Parkland Development n/a - meets 10 yr. level of service only

Parkland Amenities n/a - meets 10 yr. level of service only

Indoor Recreation Facilities n/a - meets 10 yr. level of service only

Library Facilities n/a - meets 10 yr. level of service only

Library Collection Materials n/a - meets 10 yr. level of service only

Administration nil

Roads and Related

Fire

Service Category

Sub-ComponentAllocation

Parks

Recreation

Library

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5.5 Benefit to Existing Development Paragraph 6 of s.s.(1) requires a further reduction to the need, by the extent to which such an increase in service would benefit existing development (i.e. development existing as of year-end 2010). The level of service cap is related, but is not the identical requirement. A number of principles have been established for use in deciding whether, and the extent to which, an increase in service would benefit existing development. These principles are as follows: 1. Where existing development has an adequate service level that will not be tangibly

increased by an increase in service, no benefit is involved. 2. Where a general existing service problem is to be remedied, a deduction should be

made as part of the DC calculation, accordingly. 3. The percentage of the cost of the new infrastructure that is attributable to existing

development depends, in part, on how well the needs of existing development are met at present. If they are not well met, then many service improvements/increases can be expected to attract high levels of use from the existing population; whereas where existing needs are relatively well met, much of the use of additional facilities can be expected to occur from growth.

4. The benefit to existing attribution is also impacted by when, during the ten-year planning period, the capital spending occurs, i.e.

• if it is at the end of the ten years, then existing development received no benefit for ten years and experienced a decline in service level during that period, as growth occurred without any increase in servicing capacity;

• there would be no benefit to existing development in the subsequent ten-year period assuming the added capacity was only sufficient to restore the service to its Year 1 level;

• if the new capital was put in place at the beginning of the first ten-year period, existing development would have the benefit of the added service capacity until growth eventually occurred and started to consume its share;

• capital construction after five years would be impact-neutral from this perspective.

5. Where DCs have been collected in a preceding interval, the assumption in the calculation was that these works could be DC-funded over a long-term period. Thus, the balance of the program (plus any additional development-related works and net of the uncommitted reserve fund balance) should be fully DC-funded in future, in accordance with the assumptions on which the original development charge calculation was based.

Table 5-3 summarizes the general approach to determining, by service and type of infrastructure, appropriate deductions for benefit to existing development.

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TABLE 5-3 SUMMARY OF BENEFIT TO EXISTING DEVELOPMENT COST ALLOCATION

Roads 95% - patching/spraying & grading

90% - resurfacing & gravel

Sidewalks and Streetlights nil

Depots and Domes nil

Roads and Related Vehicles nil

Fire Facilities 25% - replacement of existing GFA for Station 1 & 2

Fire Vehicles nil

Fire Small Equipment and Gear nil

Parkland Development nil

Parkland Amenities nil

Indoor Recreation Facilities nil

Recreation Vehicles and Equipment nil

Library Facilities nil

Library Collection Materials nil

Administration 25% - zoning by-law, site plan, DC studies

Service Category Sub-Component

Deductions

Roads and Related

Parks

Recreation

Library

Fire

5.6 Grants, Subsidies and Other Contributions s.s.5(1)7 of the DCA requires that the capital costs must be reduced by the reductions set out in subsection (2). s.s.5(2) states that:

“The capital costs, determined under para. 7 of subsection (1), must be reduced, in accordance with the regulations, to adjust for capital grants, subsidies and other contributions made to a municipality or that the Council of the municipality anticipates will be made in respect of the capital costs.”

Section 6 of O.Reg. 82/98 indicates that any such grant, subsidy or other contribution (including developer contributions) must be used to reduce the s.s.5(1)7 capital costs in the same proportion as the increase in need was reduced under s.s.5(1), para. 6, unless at the time it was made, the person making it expressed a clear intention that all or part be used to benefit existing or new development. In the latter case, a deduction to capital costs must be made, but only to the extent that the funds were intended to benefit new development. Two recommendations follow as a result of these provisions. First, wherever appropriate, that grants, subsidies and other contributions be clearly designated by the donor as being to the

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benefit of existing development (or new development where applicable). Second, that as part of approving this background study, the Township Council adopt the assumptions contained herein as an “anticipation” with respect to capital grants, subsidies and other contributions, in order to provide the necessary input to the DC calculation. No grants, subsidies or other contributions have been identified.

5.7 The 10% Reduction Paragraph 8 of s.s.5(1) of the DCA requires that, “the capital costs must be reduced by 10 per cent.” This paragraph does not apply to water supply services, waste water services, storm water drainage and control services, services related to a highway and to police and fire protection services. The 10% is to be netted from the capital costs necessary to provide the increased services, once the other deductions have been made. For the Township, the 10% deduction is made for the following services:

• Parks; • Recreation; • Library; • Administration.

5.8 Residential and Non-Residential Allocations The net DC recoverable costs calculated above must be allocated between residential and non-residential development. Subsection 5(6) of the DCA, 1997 states that:

• if the rules expressly identify a type of development, they must not provide for it to pay DCs 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.

In order to address this requirement, the following conventions have been adopted:

• Costs to residential uses have been assigned to different types of residential units based

on the average occupancy for each housing type constructed during the first 10-20 years of occupancy.

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• Costs are allocated to residential uses (as opposed to non-residential uses) based upon

a number of conventions, as may be suited to each municipal circumstance, e.g.

o In some cases, the residential portion is calculated as the relationship between the population increment and the population plus employment increment. This measure has been employed for roads, public works, fire and administrative services;

o For services such as parks, recreation and libraries, which are fundamentally directed toward residential users, 5% is attributed to non-residential use to cover the limited business and related use, with the balance to residential.

Table 5-5 summarizes the way in which DC recoverable costs were allocated between residential and non-residential development.

TABLE 5-5

SUMMARY OF RESIDENTIAL VS. NON-RESIDENTIAL COST ALLOCATION

Service Residential/Non-residential Allocation

Roads & Related 89% / 11% - 20 year population : employment

Fire 89% / 11% - 20 year population : employment

Parks 95% / 5%

Recreation 95% / 5%

Library 95% / 5%

Administration 91% / 9% - 10 year population : employment

- service fundamentally directed towards residential users

Rationale

- service fundamentally directed towards residential users - service fundamentally directed towards residential users

5.9 Determination of the Charge Applying the above deductions and allocations to the capital costs produces the potential DC recoverable costs. These costs are applied to the forecast growth to determine the maximum development charge for residential and non-residential development. The calculation for residential development is generated on a per capita basis and based upon different forms of housing types (single and semi detached, two bedroom and larger apartments, bachelor and one bedroom apartments and all other multiples). The non-residential development charge has been calculated based on a per square foot of gross floor area basis for all types of development (industrial, commercial and institutional).

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For the residential calculations, the total cost is divided by the “gross” (new resident) population to determine the per capita amount. The eligible DC cost calculations are based on the net anticipated population increase (the forecast new unit population less the anticipated decline in existing units). This approach acknowledges that service capacity will be “freed up” by the population decline in existing units. The cost per capita is then multiplied by the average occupancy of the new units to calculate the charges in. The resultant calculations and schedule of charges is presented in Chapter 6, with supporting detailed service costing in Appendix B.

5.10 Long Term Capital and Operating Cost Examination The revenue to be generated by the DC by-law during its life of up to five years will be determined by the quantum of the charge, the amount and type of development occurring and the impact of the rules regarding exemptions, phasing in, indexing, land redevelopment, etc. The net stream of revenue which results, in concert with Township policy to employ front-ending agreements and long term debt, will determine the rate at which the Township is able to construct the works which underlie the development charge. Consideration of these revenue streams would normally occur as part of the Township’s annual Capital Budget and Forecasting process. Subsection 10(2) of the Act lists as one of the things that a development charge background study must include:

“(c) an examination for each service to which the development charge by-law would relate, of the long term capital and operating costs for capital infrastructure required for the service.”

• “An examination” involves testing or judging by a standard and some form of scrutiny;

“for each service to which the development charge by-law would relate,” excludes ineligible services and any voluntary excluded services; “of the long term” generally refers to a period of 10 or more years or possibly the lifetime of the asset; “capital and operating costs” refers to all costs, but not to revenues or to net costs; “for capital infrastructure required for the service” appears to refer to project specific information, possibly aggregated on an overall service basis.

• “Operating costs” refer to all operating or non-capital costs, based on the definition of

“capital” in the DCA, 1997, which would be required for each service. “Capital costs” include the initial cost of emplacing the work (development charges and other funding sources), as well as the subsequent cost of repair and replacement.

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One standard that could be used in scrutinizing the above-referenced costs is the current level of operating costs per capita. Another more detailed standard which goes beyond the requirements of the Act, would be the anticipated impact on tax levels, as determined by the application of a full fiscal impact model. The long term capital and operating cost examinations which form part of these background studies are set out in Appendix D.


6. DEVELOPMENT CHARGE CALCULATION

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6. DEVELOPMENT CHARGE CALCULATION Table 6-1 calculates the proposed development charge to be imposed on anticipated development in the Township for services over the 20-year forecast period. Table 6-2 calculates the proposed development charges to be imposed for services constructed to facilitate Township-wide development over the 10-year forecast period. Table 6-1 includes services related to a highway and fire protection services. Table 6-2 calculates the proposed uniform development charge to be imposed on anticipated development in the Township for municipal-wide services over a 10-year planning horizon. Those services include outdoor and indoor recreation, library and administration (studies). The calculation for residential development is generated on a per capita basis and is based upon five forms of housing types (single and semi-detached, apartments 2+ bedrooms, apartments bachelor and 1 bedroom, special care/special dwelling units and all other multiples). The non-residential development charge has been calculated on a per sq.ft. of gross floor area basis for all types of non-residential development (industrial, commercial and institutional). The DC eligible costs for each service component were developed in Chapter 5 for all municipal services, based on their proposed capital programs. For the residential calculations, the total cost is divided by the “gross” (new resident) population to determine the per capita amount. The eligible DC cost calculations set out in Appendix B are based on the net anticipated population increase (the forecast new unit population less the anticipated decline in existing units). The cost per capita is then multiplied by the average occupancy of the new units (Appendix A; Schedules 4 and 5) to calculate the charge in Tables 6-1 and 6-2. With respect to non-residential development, the total costs in the uniform charge allocated to non-residential development (based on need for service) have been divided by the anticipated development over the planning period to calculate a cost per sq.ft. of gross floor area. Table 6-3 summarizes the total development charge that is applicable and Table 6-4 summarizes the gross capital expenditures and sources of revenue for works to be undertaken during the five-year life of the by-law.

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2011 $ DC Eligible Cost 2011 $ DC Eligible CostSERVICE Residential Non-Residential SDU per ft²

$ $ $ $1. Roads and Related

1.1 Roads 894,553 106,847 1,704 1.321.2 Depots and Domes 159,178 19,012 303 0.241.3 PW Rolling Stock 348,674 41,646 664 0.52

1,402,404 167,506 2,671 2.08

2. Fire Protection Services2.1 Fire facilities 128,189 15,311 244 0.192.2 Fire vehicles 247,015 29,504 470 0.362.3 Small equipment and gear 29,479 3,521 56 0.04

404,683 48,336 770 0.59

TOTAL $1,807,087 $215,842 $3,441 $2.67

DC ELIGIBLE CAPITAL COST $1,807,087 $215,84220 Year Gross Population / GFA Growth (ft².) 1,722 80,950Cost Per Capita / Non-Residential GFA (ft².) $1,049.41 $2.67By Residential Unit Type p.p.u

Single and Semi-Detached Dwelling 3.28 $3,442Apartments - 2 Bedrooms + 1.93 $2,025Apartments - Bachelor and 1 Bedroom 1.27 $1,333Other Multiples 2.20 $2,309Special Care/Special Dwelling Units 1.10 $1,154

2011-2030

TABLE 6-1Township of Wainfleet

DEVELOPMENT CHARGE CALCULATIONMunicipal-wide Services

6-3


2011 $ DC Eligible Cost 2011 $ DC Eligible CostSERVICE Residential Non-Residential SDU per ft²

$ $ $ $3. Outdoor Recreation Services

3.1 Parkland development, amenities & trails 167,837 8,834 622 0.22167,837 8,834 622 0.22

4. Indoor Recreation Services4.1 Recreation facilities 453,509 23,869 1,681 0.58

5. Library Services5.1 Library facilities 55,695 2,931 206 0.075.2 Library materials 77,412 4,074 287 0.10

133,106 7,006 493 0.176. Administration

6.1 Studies 128,569 13,181 477 0.32

TOTAL $883,021 $52,889 $3,273 $1.29

DC ELIGIBLE CAPITAL COST $883,021 $52,88910 Year Gross Population / GFA Growth (ft².) 885 40,900Cost Per Capita / Non-Residential GFA (ft².) $997.76 $1.29By Residential Unit Type p.p.u

Single and Semi-Detached Dwelling 3.28 $3,273Apartments - 2 Bedrooms + 1.93 $1,926Apartments - Bachelor and 1 Bedroom 1.27 $1,267Other Multiples 2.20 $2,195Special Care/Special Dwelling Units 1.10 $1,098

DEVELOPMENT CHARGE CALCULATIONMunicipal-wide Services

2011-2020

TABLE 6-2Township of Wainfleet

TABLE 6-3

DEVELOPMENT CHARGE CALCULATIONTOTAL ALL SERVICES

2011 $ DC Eligible Cost 2011 $ DC Eligible CostResidential Non-Residential SDU per ft²

$ $ $ $

Municipal-wide Services 20 Year 1,807,087 215,842 3,441 2.67

Municipal-wide Services 10 Year 883,021 52,889 3,273 1.29

TOTAL 2,690,108 268,731 6,714 3.96

Township of Wainfleet

6-4


Table 6-4Township of Wainfleet

GROSS EXPENDITURE AND SOURCES OF REVENUE SUMMARYFOR COSTS TO BE INCURRED OVER THE LIFE OF THE BY-LAW

SOURCES OF FINANCINGTAX BASE OR OTHER NON-DC SOURCE DC RESERVE FUND

OTHER DEDUCTIONS

BENEFIT TO EXISTING OTHER FUNDING

LEGISLATED REDUCTION RESIDENTIAL

NON-RESIDENTIAL

1. Roads and Related1.1 Roads 2,801,000 0 2,550,650 0 0 0 223,638 26,7121.2 Depots and Domes 8,910 0 0 0 0 0 7,959 9511.3 PW Rolling Stock 19,516 0 0 0 0 0 17,434 2,082

2. Fire Protection Services2.1 Fire facilities 1,600,000 0 400,000 0 0 1,056,500 128,189 15,3112.2 Fire vehicles 575,000 0 0 0 0 312,193 234,766 28,0412.3 Small equipment and gear 33,000 0 0 0 0 0 29,479 3,521

3. Outdoor Recreation Services3.1 Parkland development, amenities & trails 98,150 0 0 0 9,815 0 83,918 4,417

4. Indoor Recreation Services4.1 Recreation facilities 265,210 0 0 0 26,521 0 226,755 11,934

5. Library Services5.1 Library facilities 32,570 0 0 0 3,257 0 27,847 1,4665.2 Library materials 45,270 0 0 0 4,527 0 38,706 2,037

6. AdministrationTOTAL EXPENDITURES & REVENUES $5,583,626 $0 $2,976,900 $0 $51,995 $1,368,693 $1,082,975 $103,062

POST DC PERIOD BENEFIT

TOTAL GROSS COST

SERVICE


7. DEVELOPMENT CHARGE POLICY RECOMMENDATIONS

AND DEVELOPMENT CHARGE BY-LAW RULES

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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.

7.2 Development Charge By-law Structure It is recommended that:

• that a uniform municipal-wide development charge be calculated for all municipal

services; and

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• 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. 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 services, the costs have been based on an employment vs. population ten-year growth ratio (91% / 9%);

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• for library, outdoor recreation and indoor recreation services, a 5% non-residential attribution has been made to recognize use by the non-residential sector; and

• for services related to a highway and fire protection services, a 89% residential

and 11% non-residential attribution has been made based on a population vs. employment growth ratio over the 20-year period.

7.3.3 Application to Redevelopment of Land (Demolition and Conversion) If a development involves the demolition and replacement of a building or structure on the same site, or the conversion from one principal use to another, the developer shall be allowed a credit equivalent to: 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)

• places of worship; and

• bona fide farm (non-residential) buildings, including wholesale greenhouse facilities and structures.

7.3.5 Phasing in No provisions for phasing in the development charge are provided in the development charge by-law.

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7.3.6 Timing of Collection The development charge for all services shall 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, commencing on the first anniversary date of this by-law and each anniversary date thereafter, 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 to be reserved in six separate reserve funds: Services Related to a Highway, Fire Protection Services, Indoor Recreation, Outdoor Recreation, Administration, and Library Services. Appendix F outlines the reserve fund policies that the Township is required to follow as per the Development Charges 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. 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


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 Appendix B of the Development Charges Background Study dated June 13, 2011, subject to further annual review during the capital budget process”; “Approve the Development Charges Background Study dated June 13, 2011, as amended (if applicable)"; and “Determine that no further public meeting is required”; and “Approve the Development Charge By-law as set out in Appendix E.”


8. BY-LAW IMPLEMENTATION

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: 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

8-2


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. 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. 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.

8-3


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.

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.

8-4


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. 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

8-5


by-law applies. Such an agreement can provide for the costs to be borne by one or more parties to the agreement who are, in turn, reimbursed in future, by persons who develop land defined in the agreement. Part III of the 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.


APPENDIX A BACKGROUND INFORMATION ON RESIDENTIAL AND

NON-RESIDENTIAL GROWTH FORECAST

A-1


Singles & Semi's (Low

Density)


Apartments (High

Density)Other

Total Permanent Households

Seasonal Households

Total Households (Seasonal + Permanent)

Person Per Unit (PPU) (Permanent

Housing Units)

Mid 1996 6,253 7,181 2,040 25 35 40 2,140 507 2,647 2.92Mid 2001 6,258 7,186 2,150 20 35 20 2,225 507 2,732 2.81Mid 2006 6,601 7,529 2,275 30 30 45 2,380 507 2,887 2.77Mid 2011 6,733 7,661 2,347 30 30 45 2,452 507 2,959 2.75Mid 2016 6,993 7,921 2,467 30 30 45 2,572 507 3,079 2.72Mid 2021 7,328 8,256 2,617 30 30 45 2,722 507 3,229 2.69Mid 2026 7,593 8,521 2,752 30 30 45 2,857 507 3,364 2.66Mid 2031 7,880 8,808 2,872 30 30 45 2,977 507 3,484 2.65

Mid 1996 - Mid 2001 5 5 110 -5 0 -20 85 0 85Mid 2001 - Mid 2006 343 343 125 10 -5 25 155 0 155Mid 2006 - Mid 2011 132 132 72 0 0 0 72 0 72Mid 2011 - Mid 2016 261 261 120 0 0 0 120 0 120Mid 2011 - Mid 2021 595 595 270 0 0 0 270 0 270Mid 2011 - Mid 2026 860 860 405 0 0 0 405 0 405Mid 2011 - Mid 2031 1,147 1,147 525 0 0 0 525 0 525

Source: Watson & Associates Economists Ltd., April, 2011Derived from Niagara Growth Management Strategy, December, 2008.1. Population excludes net Census Undercount of approximately 4%.

1. Growth Forecast represents start year.

SCHEDULE 1TOWNSHIP OF WAINFLEET

RESIDENTIAL GROWTH FORECAST SUMMARY

Permanent Population1Year

Housing UnitsPermanent

Population + 50% Seasonal

Population Equivalent

Source: Historical housing activity (2001-2010) based on Statistics Canada building permits, Catalogue 64-001-XIB less Statistics Canada Demolitions (2002-2010).

26

30

2625

14

19

22

11

4

16

20

25 25 25 25

30 30 30 30 30

27 27 27 27 27

24 24 24 24 24

0

5

10

15

20

25

30

35

Hou

sing

Uni

ts

Years

FIGURE A-1TOWNSHIP OF WAINFLEET

20-YEAR HOUSING FORECAST¹

Historical Low Density Historical Average

A-2


POPULATION

Mid 2006 Population 7,529

Occupants of Units (2) 72New Housing Units, multiplied by persons per unit (3) 3.36Mid 2006 to Mid 2011 gross population increase 242 242

Decline in Housing Units (4) 2,887Unit Occupancy, multiplied by ppu decline rate (5) -0.0382Mid 2006 to Mid 2011 total decline in population -110 -110

Population Estimate to Mid 2011 7,661

Net Population Increase, Mid 2006 to Mid 2011 132

(1) 2006 population based on StatsCan Census unadjusted for Census Undercount.

(2)

(3) Average number of persons per unit (ppu) is assumed to be:

Persons % Distribution Weighted Persons

Structural Type Per Unit¹ of Estimated Units² Per Unit Average

Singles & Semi's (Low Density) 3.36 100% 3.36

Other Multiples (Medium Density) 2.05 0% 0.00

Apartments (High Density) 1.89 0% 0.00

Total 100% 3.36¹ Based on 2006 Census custom database

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.


CURRENT YEAR GROWTH FORECASTMID 2006 TO MID 2011

Estimated residential units constructed, Mid 2006 to the beginning of the growth period, assuming a six month lag between construction and occupancy.

A-3


POPULATION






(1) Mid 2011 Population based on:

(2) Based upon forecast building permits/completions assuming a lag between construction and occupancy.







one bedroom or less 1.27

two bedrooms or more 1.93

Total 100% 3.28¹ Persons per unit based on adjusted Statistics Canada Custom 2006 Census database.

² Forecast unit mix based upon historical trends and housing units in the development process.

(4) Mid 2011 households based upon 2,887 (2006 Census) + 72 (Mid 2006 to Mid 2011 unit estimate) = 2,452

(5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions.


FIVE YEAR GROWTH FORECASTMID 2011 TO MID 2016

2006 Population (7,529) + Mid 2006 to Mid 2011 estimated housing units to beginning of forecast period (72 x 3.36 = 242) + (2,887 x -0.0382 = -110) = 7,661

A-4


POPULATION




















MID 2011 TO MID 2021



TEN YEAR GROWTH FORECAST

A-5


POPULATION


Occupants of Units (2) 525New Housing Units, multiplied by persons per unit (3) 3.28Mid 2011 to Mid 2031 gross population increase 1,722 1,722



Net Population Increase, Mid 2011 to Mid 2031 1,147















MID 2011 TO MID 2031



TWENTY YEAR GROWTH FORECAST

A-6


Singles & Semi's (Low Density)


Apartments (High Density) Total

1. Draft Approved Subdivision 18 0 0 18% Breakdown 100% 0% 0% 100%

2. Village ResidentialVacant Properties that would produce 1 lot only 57 0 0 57

Infill potential on existing developed lots that would produce 1 additional lot

30 0 0 30

Vacant Properties that would produce 2 or more lots 174 0 0 174

Infill potential on existing developed lots that would produce 2 or more additional lots

100 0 0 100

Sub-Total 361 0 0 361

% Breakdown 100% 0% 0% 100%

3. Mobile Home Park 129 0 0 129% Breakdown 100% 0% 0% 100%

4. Lakeshore Residential

Vacant Properties that would produce 1 lot only 154 0 0 154

Vacant Properties that would produce 2 or more lots 58 0 0 58

Sub-Total 212 0 0 212

% Breakdown 100% 0% 0% 100%

5. Agricultural/Rural AreaVacant Residential / Recreational Land on Water 3 0 0 3

Vacant Residential Land not on Water 84 0 0 84

Farm Property without any Buildings / Structures 186 0 0 186

Farm With Structures / No Dwelling 42 0 0 42

Sub-Total 315 0 0 315

% Breakdown 100% 0% 0% 100%

Total 1,035 0 0 1,035% Breakdown 100% 0% 0% 100%

Source: Wainfleet Vacant Residential Lands & Development Potential

TOWNSHIP OF WAINFLEETSUMMARY OF UNITS IN THE DEVELOPMENT PROCESS AND VACANT LOT ANALYSIS

SCHEDULE 6

Stage of DevelopmentDensity Type

A-7


RESIDENTIAL BUILDING COMPLETIONS

Low Density Medium Density High Density Total Year Low Density Medium Density High Density Total(Singles & Semis) (Townhomes) (Apartments) (Singles & Semis) (Townhomes) (Apartments)

1998 27 1 1 292001 26 0 0 26 2001 23 0 0 232002 30 1 0 31 2002 26 0 0 262003 26 0 0 26 2003 28 0 0 282004 26 1 0 27 2004 19 0 0 192005 15 0 0 15 2005 21 0 0 21

Sub-total 123 2 0 125 Sub-total 117 0 0 117Average (2001 - 2005) 25 0 0 25 Average (2001 - 2005) 23 0 0 23% Breakdown 98.4% 1.6% 0.0% 100.0% % Breakdown 100.0% 0.0% 0.0% 100.0%

2006 20 0 0 20 2006 19 0 0 192007 25 0 0 25 2007 21 0 0 212008 13 0 0 13 2008 7 0 0 72009 10 0 0 10 2009 12 0 0 122010 21 0 0 21 2010¹ 19 0 0 19

Sub-total 89 0 0 89 Sub-total 78 0 0 78Average (2006 - 2010) 18 0 0 18 Average (2006 - 2010¹) 16 0 0 16% Breakdown 100.0% 0.0% 0.0% 100.0% % Breakdown 100.0% 0.0% 0.0% 100.0%

2001 - 2010 2001 - 2010¹Total 212 2 0 214 Total 195 0 0 195Average 21 0 0 21 Average 20 0 0 20% Breakdown 99.1% 0.9% 0.0% 100.0% % Breakdown 100.0% 0.0% 0.0% 100.0%Source: Building Permits - Statistics Canada Publication, 64-001XIB Source: Canada Mortgage and Housing Corporation - Completions Data

1. 2010 Estimated by Watson & Associates Economists Ltd.

SCHEDULE 7a

TOWNSHIP OF WAINFLEETHISTORICAL RESIDENTIAL BUILDING PERMITS

YEARS 2001 - 2010

SCHEDULE 7a

TOWNSHIP OF WAINFLEETHISTORICAL RESIDENTIAL COMPLETIONS

YEARS 2001 - 2010¹

Year

RESIDENTIAL BUILDING PERMITS

A-8


RESIDENTIAL DEMOLITION PERMITS

Low Density Medium Density High Density Total(Singles & Semis) (Townhomes) (Apartments)

2002 1 0 0 12003 0 0 0 02004 2 0 0 22005 1 0 0 12006 1 0 0 12007 3 0 0 32008 2 0 0 22009 6 0 0 62010 5 0 0 5

Sub-total 21 0 0 21Average (2002 - 2010) 2 0 0 2% Breakdown 100.0% 0.0% 0.0% 100.0%Source: Statistics Canada Publication - Demolition Permits

Year

SCHEDULE 7b

TOWNSHIP OF WAINFLEETHISTORICAL RESIDENTIAL DEMOLITION PERMITS

YEARS 2002 - 2010

A-9


Age of LOW DENSITY - Single and Semi-Detached Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total Adjusted PPU¹ 20 Year Average

1-5 - - - 3.048 - 3.357 3.36 6-10 - - - 3.909 - 3.600 3.60 11-15 - - - - - - - 16-20 - - - 3.000 - 2.880 2.88 3.28 20-25 - - - 3.273 - 3.273 3.27 25-35 - - - 2.264 - 2.185 2.18 35+ - 1.733 1.930 3.000 5.000 2.749 2.75

Total - 1.632 2.023 2.948 5.400 2.781

Age of MEDIUM DENSITY - Rows and Apartment in DuplexDwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total

1-5 - - - - - - 6-10 - - - - - - 11-15 - - - - - - 16-20 - - - - - - 20-25 - - - - - - 25-35 - - - - - - 35+ - - - - - -

Total - - - - - -

Age of HIGH DENSITY - Apartments < > 5 StoreysDwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total

1-5 - - - - - - 6-10 - - - - - - 11-15 - - - - - - 16-20 - - - - - - 20-25 - - - - - - 25-35 - - - - - - 35+ - - - - - -

Total - - - - - -

Age of ALL DENSITY TYPESDwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total

1-5 - - - 3.048 - 3.357 6-10 - - - 3.909 - 3.600 11-15 - - - - - - 16-20 - - - 3.000 - 2.880 20-25 - - - 3.273 - 3.273 25-35 - - - 2.264 - 2.185 35+ - 1.882 1.972 3.040 4.385 2.744

Total - 1.762 2.057 2.973 4.882 2.777

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


SCHEDULE 8

PERSONS PER UNIT BY AGE AND TYPE OF DWELLING(2006 CENSUS)

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

A-10


3.357

3.600

-

2.880

3.273

2.185

2.749

-

0.500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

1-5 6-10 11-15 16-20 20-25 25-35 35+

Pers

ons P

er D

wel

ling

Age of Dwelling


PERSONS PER UNIT BY STRUCTURAL TYPE AND AGE OF DWELLING(2006 CENSUS)

Note: There was insufficient data for dwellings aged 11-15 for the Township of Wainfleet

A-11


1996 6,253 0.025 0.080 0.026 0.017 0.020 0.167 155 500 160 105 125 1,045

2001 6,258 0.021 0.101 0.040 0.033 0.015 0.209 130 630 250 205 95 1,310

2006 6,601 0.017 0.075 0.048 0.038 0.019 0.197 115 495 315 250 125 1,300

Mid 2011 6,733 0.018 0.075 0.049 0.041 0.019 0.202 122 505 330 274 126 1,357 330,000 150,700 88,200 568,900

Mid 2016 6,993 0.018 0.073 0.049 0.041 0.018 0.199 126 509 345 286 127 1,393 345,000 157,300 88,900 591,200

Mid 2021 7,328 0.017 0.070 0.049 0.040 0.018 0.194 126 513 360 290 129 1,418 360,000 159,500 90,300 609,800

Mid 2026 7,593 0.017 0.068 0.049 0.040 0.017 0.192 129 520 375 303 132 1,459 375,000 166,650 92,400 634,050

Mid 2031 7,880 0.017 0.067 0.048 0.040 0.017 0.190 133 528 381 317 135 1,494 381,000 174,350 94,500 649,850

1996 - 2001 5 -0.004 0.021 0.014 0.016 -0.005 0.042 -25 130 90 100 -30 265

2001 - 2006 343 -0.003 -0.026 0.008 0.005 0.004 -0.012 -15 -135 65 45 30 -10

2006 - Mid 2011 132 0.0007 0.0000 0.0013 0.0028 -0.0002 0.0046 7 10 15 24 1 57

Mid 2011 - Mid 2016 261 -0.0001 -0.0022 0.0003 0.0002 -0.0006 -0.0024 4 4 15 12 1 36 15,000 6,600 700 22,300

Mid 2011 - Mid 2021 595 -0.0009 -0.0050 0.0001 -0.0011 -0.0011 -0.0081 4 8 30 16 3 61 30,000 8,800 2,100 40,900

Mid 2011 - Mid 2026 860 -0.0011 -0.0065 0.0004 -0.0008 -0.0013 -0.0094 7 15 45 29 6 102 45,000 15,950 4,200 65,150

Mid 2011 - Mid 2031 1,147 -0.0012 -0.0080 -0.0007 -0.0005 -0.0016 -0.0120 11 23 51 43 9 137 51,000 23,650 6,300 80,950

1996 - 2001 1 -0.00080 0.00414 0.00287 0.00319 -0.00096 0.00844 -5 26 18 20 -6 53

2001 - 2006 69 -0.00067 -0.00514 0.00155 0.00102 0.00075 -0.00248 -3 -27 13 9 6 -2

2006 - Mid 2011 26 0.0001 0.0000 0.0003 0.0006 0.0000 0.0009 1 2 3 5 0 11

Mid 2011 - Mid 2016 52 -0.00002 -0.00044 0.00006 0.00004 -0.00011 -0.00047 1 1 3 2 0 7 3,000 1,320 140 4,460

Mid 2011 - Mid 2021 60 -0.00009 -0.00050 0.00001 -0.00011 -0.00011 -0.00081 0 1 3 2 0 6 3,000 880 210 4,090

Mid 2011 - Mid 2026 57 -0.00008 -0.00043 0.00002 -0.00005 -0.00009 -0.00063 0 1 3 2 0 7 3,000 1,063 280 4,343

Mid 2011 - Mid 2031 57 -0.00006 -0.00040 -0.00003 -0.00002 -0.00008 -0.00060 1 1 3 2 0 7 2,550 1,183 315 4,048

Source: Watson & Associates Economists Ltd., April, 2011Derived from Niagara Growth Management Strategy, December, 2008.1. Square Foot Per Employee Assumptions

Industrial 1,000Commercial/ Population Related 550Institutional 700

Incremental Change

Annual Average

Activity Rate Employment

IndustrialCommercial/ Population

RelatedInstitutional

Work at Home Industrial

Commercial/ Population

RelatedInstitutional Total

EMPLOYMENT AND GROSS FLOOR AREA (GFA) FORECAST, 2011 TO 2031


Gross Floor Area in Square Feet (Estimated)¹

Total Period Population

PrimaryWork at Home Industrial

Commercial/ Population

RelatedInstitutional Total Primary

A-12


2000 1,5502001 3,398

Sub-totalAverage

New Improve Additions Total New Improve Additions Total New Improve Additions Total New Improve Additions Total 2002 1,021 0 0 1,021 824 233 0 1,058 4 32 702 737 1,848 265 702 2,8152003 1,418 0 0 1,418 992 329 0 1,320 0 0 0 0 2,410 329 0 2,7382004 0 0 379 379 515 400 0 916 6 308 711 1,025 521 708 1,090 2,3192005 123 0 0 123 584 175 0 759 85 315 0 401 792 491 0 1,2832006 275 0 0 275 637 315 0 952 0 148 0 148 912 463 0 1,3752007 129 1 903 1,033 248 91 0 339 133 49 0 182 509 141 903 1,5532008 0 101 0 101 296 93 0 388 0 69 0 69 296 262 0 5582009 543 0 0 543 610 44 0 654 0 178 0 178 1,153 222 0 1,3762010 500 238 0 738 550 129 0 679 0 5 0 5 1,050 372 0 1,422

Subtotal 4,008 340 1,282 5,630 5,255 1,810 0 7,066 228 1,104 1,412 2,744 9,491 3,254 2,694 15,439Percent of Total 71% 6% 23% 100% 74% 26% 0% 100% 8% 40% 51% 100% 61% 21% 17% 100%Average 445 38 142 626 584 201 0 785 25 123 157 305 1,055 362 299 1,715

2001 - 201010 Year Total 6,795 9,269 2,774 15,43910 Year Average 679 927 277 1,544% Breakdown 44.0% 60.0% 18.0% 100.0%

SOURCE: STATISTICS CANADA PUBLICATION, 64-001-XIBNote: Inflated to year-end 2010 (January, 2011) dollars using Reed Construction Cost Index


NON-RESIDENTIAL CONSTRUCTION VALUEYEARS 2001 - 2010

(000's 2011 $)

3,398

Total

3,39830

6030

Institutional

30

YEAR1,011

1,165

Industrial480

2,2032,2032,203

Commercial

1,1651,165

A-13


1996 2001 2006 96-01 01-06 Comments

Employment by industry

1.0 Primary Industry Employment Categories which relate to

1.1 All primary 410 470 340 60 -130 local land-based resources.

Sub-total 410 470 340 60 -130

2.0 Industrial and Other Employment

2.1 Manufacturing 80 85 75 5 -10 Categories which relate

2.2 Wholesale trade 30 45 75 15 30 primarily to industrial land

2.3 Construction 45 110 135 65 25 supply and demand.

2.4 Transportation, storage, communication and other utility 75 118 148 43 30

Sub-total 230 358 433 128 75

3.0 Population Related Employment

3.1 Retail trade 80 55 85 -25 30 Categories which relate

3.2 Finance, insurance, real estate operator and insurance agent 0 30 35 30 5 primarily to population

3.3 Business service 25 48 53 23 5 growth within the

3.4 Accommodation, food and beverage and other service 135 240 200 105 -40 municipality.

Sub-total 240 373 373 133 0

4.0 Institutional

4.1 Government Service 50 35 20 -15 -15

4.2 Education service, Health, Social Services 115 75 135 -40 60

Sub-total 165 110 155 -55 45

Total Employment 1,045 1,310 1,300 265 -10

Population 6,253 6,258 6,601 5 343

Employment to Population Ratio

Industrial and Other Employment 0.04 0.06 0.07 0.02 0.01

Population Related Employment 0.04 0.06 0.06 0.02 0.00

Institutional Employment 0.03 0.02 0.02 -0.01 0.01

Primary Industry Employment 0.07 0.08 0.05 0.01 -0.02

Total 0.17 0.21 0.20 0.04 -0.01

Source: Statistics Canada Employment by Place of Work

Year Change

SCHEDULE 12


EMPLOYMENT TO POPULATION RATIO BY MAJOR EMPLOYMENT SECTOR, 1996 TO 2006

Note: 1996-2006 employment figures are classified by Standard Industrial Classification (SIC) Code


APPENDIX B

SERVICE LEVELS AND CAPITAL COSTS BY SERVICE

B-1


Township of WainfleetService Standard Calculation Sheet

Service: Fire FacilitiesContact : Chris ColeUnit Measure: ft² of building areaQuantity Measure

Description 2001 2002 2003 2004 2005 2006 2007 2008 2009 20102011 Bld'g

Value ($/ft²)

Value/ft² with land,

site works, etc.

Station #1 - Winger 880 880 880 880 880 880 880 880 880 880 $155 175$ Station #2 - Wainfleet Village 2,240 2,240 2,240 2,240 2,240 2,240 2,240 2,240 2,240 2,240 $145 163$ Station #3 - Burnaby 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 $145 163$ Station #4 - Schwoob 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 $145 163$

Total 5,670 5,670 5,670 5,670 5,670 5,670 5,670 5,670 5,670 5,670

Population 7,186 7,261 7,348 7,424 7,494 7,529 7,571 7,623 7,637 7,629 Per Capita Standard 0.7890 0.7809 0.7716 0.7637 0.7566 0.7531 0.7489 0.7438 0.7424 0.7432

10 Year Average 2001-2010Quantity Standard 0.7593 Quality Standard 165 Service Standard 125.19

DC Amount (before deductions) 20 YearForecast Population 1,147 $ per Capita $125Eligible Amount $143,593

B-2


INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION

Township of WainfleetService: Fire Facilities

Less: Potential DC Recoverable Cost

Prj .No Residential Share

Non-Residential Share

2011-2030 89% 11%

1 New 3 bay drive through station 2013 1,600,000 1,056,500 543,500 400,000 143,500 128,189 15,311

Total 1,600,000 1,056,500 0 543,500 400,000 0 143,500 128,189 15,311

Increased Service Needs Attributable to Anticipated Development

Gross Capital Cost

Estimate

Post Period Benefit

Other Deductions

Net Capital Cost

Timing (year)

Benefit to Existing

Development

Grants, Subsidies and Other Contributions Attributable to New

Development

Total

B-3


Township of Wainfleet Service Standard Calculation Sheet

Service: Fire VehiclesContact : Chris ColeUnit Measure: No. of vehicles Quantity Measure

Description 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Value ($/Vehicle)

1988 Ford Triple Comb Pumper 1 1 1 1 1 1 1 1 1 1 $330,0001990 Ford 1800A Tanker 1 1 1 1 1 1 1 1 1 1 $270,0001997 Ford Triple Comb Pumper 1 1 1 1 1 1 1 1 1 1 $330,0001998 Freightliner Rescue 1 1 1 1 1 1 1 1 1 1 $266,0001999 Inter Triple Comb Pumper 1 1 1 1 1 1 1 1 1 1 $330,0002004 GMC Sierra Pickup 1 1 1 1 1 1 1 1 1 1 $35,0002005 GMC CAFS Pumper 1 1 1 1 1 1 1 1 1 1 $227,64019 ft Zodiak Boat 1 1 1 1 1 1 1 - - - $15,99616 ft Aluminum Boat 1 1 1 1 1 1 1 - - - $300

Total 9 9 9 9 9 9 9 7 7 7


10 Year Average 2001-2010Quantity Standard 0.0011 Quality Standard 219,164 Service Standard 241.08

DC Amount (before deductions) 20 YearForecast Population 1,147$ per Capita $241Eligible Amount $276,519

B-4



Township of WainfleetService: Fire Vehicles




2011-2030 89% 11%1 Tanker 2012 270,000 146,595 123,405 0 123,405 110,238 13,1672 Pick up Truck 2013 35,000 19,003 15,997 0 15,997 14,290 1,7073 Tanker 2014 270,000 146,595 123,405 0 123,405 110,238 13,1674 Auto extrication equipment 2018 30,000 16,288 13,712 0 13,712 12,249 1,463

Total 605,000 328,481 0 276,519 0 0 276,519 247,015 29,504

Increased Service Needs Attributable to Anticipated Development Timing

(year)

Gross Capital Cost

Estimate

Post Period Benefit

Other Deductions

Net Capital Cost

Benefit to Existing

Development


Development

Total

B-5



Service: Fire Small Equipment and GearContact : Chris ColeUnit Measure: No. of fully equipped firefighters / equipmentQuantity Measure

Description 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Value ($/item)

number of equipped firefighters 35 35 35 35 35 35 31 47 45 43 $3,940(volunteers)

Station Air Compressors - - - - - - 1 1 1 1 $26,021Cascade Systems - - - - - - 1 1 1 1 $4,574S.C.B.A.'s 14 2 2 2 2 2 14 14 14 14 $5,515Dryer 1 1 1 $2,187Washer - - - - - - - 2 2 2 $1,431Defibrillators-Fire Training Units 1 1 1 1 1 1 1 1 $360HP Combo Tool 1 1 1 1 1 $5,295Night Scan 1 1 1 1 1 1 $8,746

Total 49 37 38 38 39 40 50 69 67 65




B-6



Township of WainfleetService: Fire Small Equipment and Gear




2011-2030 89% 11%1 S.C.B.A (3) 2011 16,500 0 16,500 0 16,500 14,739 1,7612 S.C.B.A (3) 2012 16,500 0 16,500 0 16,500 14,739 1,761

Total 33,000 0 0 33,000 0 0 33,000 29,479 3,521


(year)

Gross Capital Cost

Estimate

Post Period Benefit

Other Deductions

Net Capital Cost

Benefit to Existing

Development


Development

Total

B-7



Service: RoadsContact : Greg WuismanUnit Measure: lane km of roadwaysQuantity Measure

Description 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Value ($/lane km)

Gravel 217 217 217 217 217 217 217 217 217 215 $61,500Tar & Chip 299 299 299 299 299 299 299 299 293 201 $96,500Asphalt all ditch 4 4 4 4 4 4 4 4 10 10 $181,500

Total 520 520 520 520 520 520 520 520 520 426


10 Year Average 2001-2010Quantity Standard 0.0684 Quality Standard 82,515 Service Standard 5,644.00

DC Amount (before deductions) 20 YearForecast Population 1,147$ per Capita $5,644Eligible Amount $6,473,668

B-8



Service: Sidewalks and StreetlightsContact : Greg WuismanUnit Measure: km of roadwaysQuantity Measure

Description 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Value ($/km)

Sidewalks (km) 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 $70,000

Streetlights (#) 200 200 200 200 200 200 200 200 200 200 $1,350

Total 200.6 200.6 200.6 200.6 200.6 200.6 200.6 200.6 200.6 200.6




B-9



Township of WainfleetService: Roads




2011-2030 89% 11%1 Patching & Spray 2011-2030 1,400,000 0 1,400,000 1,330,000 70,000 62,531 7,4692 Resurfacing 2011-2030 4,920,000 0 4,920,000 4,428,000 492,000 439,505 52,4953 Grading 2011-2030 980,000 0 980,000 931,000 49,000 43,772 5,2284 Gravel 2011-2030 3,904,000 0 3,904,000 3,513,600 390,400 348,745 41,655

Total 11,204,000 0 0 11,204,000 10,202,600 0 1,001,400 894,553 106,847


(year)

Gross Capital Cost

Estimate

Post Period Benefit

Other Deductions

Net Capital Cost

Benefit to Existing

Development


Development

Total

B-10



Service: Depots and DomesContact : Greg WuismanUnit Measure: ft² of building areaQuantity Measure


Value ($/ft²)


site works, etc.

Public Works Garage Operations Centre 5,520 5,520 5,520 5,520 5,520 5,520 5,520 5,520 5,520 5,520 $80 91.82$ West Bay Addition 2,760 2,760 2,760 $80 91.82$ Sand/Salt Dome 5,204 5,204 5,204 5,204 5,204 5,204 5,204 5,204 5,204 5,204 $60 69.77$ Cemetery Storage Building 1,073 1,073 1,073 1,073 1,073 1,073 1,073 1,073 1,073 1,073 $50 58.63$ Workshop 1,664 1,664 1,664 1,664 1,664 1,664 1,664 1,664 1,664 1,664 $80 91.82$

Total 13,461 13,461 13,461 13,461 13,461 13,461 13,461 16,221 16,221 16,221




B-11



Township of WainfleetService: Depots and Domes




2011-2030 89% 11%1 Provision for Additional Space 2011-30 178,190 0 178,190 0 178,190 159,178 19,012

Total 178,190 0 0 178,190 0 0 178,190 159,178 19,012


(year)

Gross Capital Cost

Estimate

Post Period Benefit

Other Deductions

Net Capital Cost

Benefit to Existing

Development


Development

Total

B-12



Service: Roads and Related VehiclesContact : Greg WuismanUnit Measure: No. of vehicles and equipmentQuantity Measure

Description 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Value ($/Vehicle)

1998 GMC 3500 - Cemetery 1 1 1 1 1 1 1 1 1 1 $60,0002006 International Dump Truck(Trk 1) 1 1 1 1 1 1 1 1 1 1 $220,0002008 International 7600 Workstar(Trk 10) 1 1 1 1 1 1 1 1 1 1 $220,0002010 GMC Sierra W/T 15 (Trk 11) 1 1 1 1 1 1 1 1 1 1 $30,0001996 Ford LS8000 Dump Truck (Trk 2) 1 1 1 1 1 1 1 1 1 1 $200,0002005 GMC 2500HD Ext Cab (Trk 3) 1 1 1 1 1 1 $30,0002002 Ford F150 XL Supercab (Trk 6) 1 1 1 1 1 1 1 1 1 $30,0002006 Int'l 7600 Dump Truck (Trk 7) 1 1 1 1 1 1 1 1 1 1 $220,0002005 Chevrolet 1500 Extend (Trk 8) 1 1 1 1 1 1 1 1 1 1 $30,000NIC DT588 Trailer 1 $3,300Nichol Trailer 1 1 1 1 1 1 1 1 1 1 $4,5002 Graders 2 2 2 2 2 2 2 2 2 2 $300,000Excavator 1 1 1 1 1 1 1 1 1 1 $300,0002 Loaders 2 2 2 2 1 1 1 2 2 2 $85,0002 Tractors 2 2 2 2 2 2 2 2 2 2 $80,000Spray Patcher 1 1 1 1 1 1 1 1 1 1 $51,600Bobcat Skidsteer 1 1 1 1 1 1 1 1 1 1 $60,000Wood Chipper 1 1 1 1 1 1 1 1 1 1 $40,000Tractor 1 1 1 1 1 1 1 1 1 1 $28,000Snowblower 1 1 1 1 1 1 1 1 $8,200Mowers 2 3 3 3 3 3 3 3 3 3 $40,000Laser Level with tripod 1 1 1 1 1 $10,000

Total 21 23 24 24 24 25 25 26 26 27




B-13



Township of WainfleetService: Roads and Related Vehicles




2011-2030 89% 11%1 Provision for Additional Vehicles 2011-30 390,320 0 390,320 0 390,320 348,674 41,646

Total 390,320 0 0 390,320 0 0 390,320 348,674 41,646


(year)

Gross Capital Cost

Estimate

Post Period Benefit

Other Deductions

Net Capital Cost

Benefit to Existing

Development


Development

Total

B-14



Service: Parkland DevelopmentContact : Greg WuismanUnit Measure: No. of developed parkland acresQuantity Measure

Description 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Value ($/Acre)

Developed parkland 47.6 47.6 47.6 47.6 47.6 47.6 47.6 47.6 47.6 47.6 $45,000

Total 47.6 47.6 47.6 47.6 47.6 47.6 47.6 47.6 47.6 47.6



DC Amount (before deductions) 10 YearForecast Population 595$ per Capita $287Eligible Amount $170,682

B-15



Service: Parkland AmenitiesContact : Greg WuismanUnit Measure: No. of parkland amenitiesQuantity Measure


Ball Diamonds - Lit 2 2 2 2 2 2 2 2 2 2 $100,000Play Structures/Equipment 1 $50,000Picnic Shelter 1 1 1 1 1 1 1 1 1 1 $81,000Tennis Court 1 1 1 1 1 1 1 1 1 1 $33,000Canteen/Washrooms 1 1 1 1 1 1 1 1 1 1 $2,700

Total 5 5 5 5 5 5 5 5 5 6




B-16



Township of WainfleetService:Parkland Development

Less: Less: Potential DC Recoverable Cost

Prj.NoResidential

Share

Non-Residential

Share

2011-2020 95% 5%1 Provision for Parkland Development 2011-16 98,150 0 98,150 0 98,150 9,815 88,335 83,918 4,4172 Provision for Parkland Development 2016-20 98,150 0 98,150 0 98,150 9,815 88,335 83,918 4,417

Total 196,300 0 0 196,300 0 0 196,300 19,630 176,670 167,837 8,834


(year)Gross Capital Cost Estimate

Post Period Benefit

Other Deductions

Net Capital Cost

SubtotalBenefit to Existing

Development

Grants, Subsidies and

Other Contributions Attributable to

New Development

Other (e.g. 10%

Statutory Deduction)

Total

B-17



Service: Indoor Recreation FacilitiesContact : Greg WuismanUnit Measure: ft² of building areaQuantity Measure


Value ($/ft²)


site works, etc.

Arena/Senior Centre 29,708 29,708 29,708 29,708 29,708 29,708 29,708 29,708 29,708 29,708 $180 202.00$ Community Hall 3,432 3,432 3,432 3,432 3,432 3,432 3,432 3,432 3,432 3,432 $170 191.00$

Total 33,140 33,140 33,140 33,140 33,140 33,140 33,140 33,140 33,140 33,140




B-18



Township of WainfleetService: Indoor Recreation Facilities


Prj.NoResidential

Share

Non-Residential

Share

2011-2020 95% 5%1 Provision for Recreation Space 2011-16 265,210 0 265,210 0 265,210 26,521 238,689 226,755 11,9342 Provision for Recreation Space 2016-20 265,210 0 265,210 0 265,210 26,521 238,689 226,755 11,934

Total 530,420 0 0 530,420 0 0 530,420 53,042 477,378 453,509 23,869



Post Period Benefit

Other Deductions

Net Capital Cost


Development



New Development

Other (e.g. 10%


Total

B-19



Service: Library FacilitiesContact : Lorrie AtkinsonUnit Measure: ft² of building areaQuantity Measure


Value ($/ft²)


site works, etc.

Wainfleet Township Public Library 4,280 4,280 4,280 4,280 4,280 4,280 4,280 4,280 4,280 4,280 $170 191.00$

Total 4,280 4,280 4,280 4,280 4,280 4,280 4,280 4,280 4,280 4,280




B-20



Township of WainfleetService:Library Facilities


Prj.NoResidential

Share

Non-Residential

Share

2011-2020 95% 5%1 Provision for Library Space 2011-16 32,570 0 32,570 0 32,570 3,257 29,313 27,847 1,4662 Provision for Library Space 2016-20 32,570 0 32,570 0 32,570 3,257 29,313 27,847 1,466

Total 65,140 0 0 65,140 0 0 65,140 6,514 58,626 55,695 2,931



Post Period Benefit

Other Deductions

Net Capital Cost


Development



New Development

Other (e.g. 10%


Total

B-21



Service: Library Collection MaterialsContact : Lorrie AtkinsonUnit Measure: No. of library collection itemsQuantity Measure


Books 30,333 32,489 31,915 28,890 26,025 28,123 27,303 26,643 26,837 27,794 $36Periodicals 152 153 40 50 54 57 41 62 72 75 $5Audio Tapes 450 550 484 512 542 558 592 616 676 689 $40Video Tapes/DVDs 1,338 1,448 1,558 1,658 1,758 1,858 1,958 2,300 2,500 2,760 $38CD Rom 112 46 210 39 50 39 38 24 35 35 $40Microfilm 145 145 145 145 145 145 155 155 165 170 $40

Total 32,530 34,831 34,352 31,294 28,574 30,780 30,087 29,800 30,285 31,523




B-22



Township of WainfleetService:Library Collection Materials


Prj.NoResidential

Share

Non-Residential

Share

2011-2020 95% 5%1 Provision for Library Materials 2011-16 45,270 0 45,270 0 45,270 4,527 40,743 38,706 2,0372 Provision for Library Materials 2016-20 45,270 0 45,270 0 45,270 4,527 40,743 38,706 2,037

Total 90,540 0 0 90,540 0 0 90,540 9,054 81,486 77,412 4,074



Post Period Benefit

Other Deductions

Net Capital Cost


Development



New Development

Other (e.g. 10%


Total

B-23



Township of WainfleetService:Administration Studies


Prj.NoResidential

Share

Non-Residential

Share

2011-2020 91% 9%1 Zoning By-law 2011-20 100,000 0 100,000 25,000 75,000 7,500 67,500 61,223 6,2772 Site Plan 2011-20 50,000 0 50,000 12,500 37,500 3,750 33,750 30,612 3,1383 DC Studies (2) 2011-20 60,000 0 60,000 15,000 45,000 4,500 40,500 36,734 3,766

Total 210,000 0 0 210,000 52,500 0 157,500 15,750 141,750 128,569 13,181



Post Period Benefit

Other Deductions

Net Capital Cost


Development



New Development

Other (e.g. 10%


Total


APPENDIX C LOCAL SERVICE POLICY

C-1


APPENDIX C - LOCAL SERVICE POLICY

TOWNSHIP OF WAINFLEET GENERAL POLICY GUIDELINES ON DEVELOPMENT CHARGE AND LOCAL SERVICE FUNDING FOR ROAD-RELATED AND

STORMWATER MANAGEMENT 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 Collector Roads External to Development – If local service within the area to

which the plan relates, direct developer responsibility under s.59 of the DCA; otherwise, 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 Township or rail corridors – localized works to be borne by developers – works associated with 1.2 to be included in DCA.

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. Where a specific development warrants the need for traffic signals, the individual developer will pay for the cost of the signal.

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 Intersection 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).

3.3 Intersections with Regional roads and provincial highways – Include in DC

calculation to the extent that they are Township responsibility.

C-2


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 or direct abutting roads – 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/Multi-Use Trails/Naturalized Walkways 6.1 Bike routes and bike lanes, within road allowance, external to development –

Include in DC road costs (Region 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).

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).

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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 through local service

provisions (s.59 of DCA). 8. Land Acquisition for Road Allowance 8.1 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 Region or area municipal DC (to the extent eligible).

8.2 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).

8.3 Land Acquisition for grade separations (beyond normal dedication requirements)

– Include in the DC to the extent eligible. 9. Land Acquisition for Easements 9.1 Easement costs external to or not directly associated with a specific subdivision

shall be included in DC calculation. 10. Stormwater Management 10.1 Quality and Quantity Works, direct developer responsibility through local service

provisions (s. 59 of DCA). 10.2 Oversizing of stormwater management works for development external to

developments will be subject to best efforts clauses by area municipality.


APPENDIX D

LONG TERM CAPITAL AND OPERATING COST EXAMINATION

D-1


APPENDIX D - 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. 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:

Average Useful Life (Years) Factor

Fire Equipment and Gear 8 0.11651Rolling Stock 10 0.09133Fire Vehicles 15 0.05783Roads 20 0.04116Parking Spaces 25 0.03122Parkland Development 30 0.02465Library Collection 10 0.09133Facilities 40 0.01656Storm Drainage 80 0.00516Water and Wastewater 80 0.00516

Asset

Lifecycle Cost Factors

Table D-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.

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Table D-1Township of Wainfleet

OPERATING AND CAPITAL EXPENDITURE IMPACTSFOR FUTURE CAPITAL EXPENDITURES

SERVICENET GROWTH

RELATED EXPENDITURES

ANNUAL LIFECYCLE EXPENDITURES

ANNUAL OPERATING

EXPENDITURES

TOTAL ANNUAL EXPENDITURES

1. Roads and Related1.1 Roads 1,001,400 41,200 358,557 399,7571.2 Depots and Domes 178,190 3,000 63,802 66,8021.3 PW Rolling Stock 390,320 35,600 139,756 175,356

2. Fire Protection Services2.1 Fire facilities 143,500 2,400 32,129 34,5292.2 Fire vehicles 276,519 16,000 61,912 77,9122.3 Small equipment and gear 33,000 3,800 7,389 11,189

3. Outdoor Recreation Services3.1 Parkland development, amenities &

trails176,670 4,400 30,467 34,867

4. Indoor Recreation Services4.1 Recreation facilities 477,378 7,900 236,767 244,667

5. Library Services5.1 Library facilities 58,626 1,000 23,001 24,0015.2 Library materials 81,486 7,400 31,970 39,370

6. Administration6.1 Studies 141,750 0 0 0


APPENDIX E PROPOSED DEVELOPMENT CHARGE BY-LAW

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THE CORPORATION OF THE TOWNSHIP OF WAINFLEET

BY-LAW NO. 2011-____

A BY-LAW FOR THE IMPOSITION OF DEVELOPMENT CHARGES WHEREAS the Development Charges Act, 1997 (the “Act”) provides that the Council of a municipality may by by-law impose development charges against land to pay for increased capital costs required because of increased needs for services; AND WHEREAS a development charge background study has been completed in accordance with the Act; AND WHEREAS the Council of the Township of Wainfleet has given notice and held a public meeting on the day of June 28, 2011 in accordance with the Act and the regulations thereto; NOW THEREFORE, THE COUNCIL OF THE TOWNSHIP OF WAINFLEET HEREBY ENACTS AS FOLLOWS: 1.0 DEFINITIONS 1.1 In this by-law, “Act” means the Development Charges Act, 1997, as amended, or any

successor thereto;

“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;

“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; “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; “benefiting area” means an area defined by a map, plan or legal description in a front-ending agreement as an area that will receive a benefit from the construction of a service;

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“board of education” has the same meaning as that specified in the Education Act or any successor thereto; “Building Code Act” means the Building Code Act, 1992, as amended; or any successor thereto; “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,

• to acquire land or an interest in land, including a leasehold interest; • to improve land; • to acquire, lease, construct or improve buildings and structures; • to acquire, construct or improve facilities including:

o furniture and equipment other than computer equipment; and o materials acquired for circulation, reference or information purposes by a

library board as defined in the Public Libraries Act; and o rolling stock with an estimated useful life of seven years or more, and

• to undertake studies in connection with any matter under the Act and any of the matters in clauses (a) to (d), including the development charge background study 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;

“commercial” means any non-residential development not defined under “institutional” or “industrial”; “council” means the Council of the municipality; “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; “development charge” means a charge imposed with respect to this by-law; “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;

“existing industrial building” means a building or buildings existing on site in the City of Sarnia on the day this by-law comes into effect or the first building constructed and occupied on a vacant site pursuant to site plan approval under Section 41 of the

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Planning Act, R.S.O. c.P.13 of the Planning Act subsequent to this by-law coming to effect for which fill development charges were paid, and is being used for or in conjunction with,

(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;

“farm building” means that part of a bona fide farming operation encompassing barns, silos and other ancillary development to an agricultural use, but excluding a residential use and would include wholesale greenhouse facilities and structures; “grade” means the average level of finished ground adjoining a building or structure at all exterior walls; “gross floor area” means the total area of all floors above grade of a dwelling unit measured between the outside surfaces of exterior walls or between the outside surfaces of exterior walls and the centre line of party walls dividing the dwelling unit from 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:

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• 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 service the building;

• loading facilities above or below grade; and

• a part of the building or structure below grade that is used for the parking of motor vehicles or for storage or other accessory use;

“industrial” means lands, buildings or structures used or designed or intended for use for manufacturing, processing, fabricating or assembly of raw goods, warehousing or bulk storage of goods, and includes office uses and the sale of commodities to the general public where such uses are accessory to an industrial use, but does not include the sale of commodities to the general public through a warehouse club;

“institutional” means lands, buildings or structures used or designed or intended for use by an organized body, society or religious group 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; “local board” has the same definition as defined in the Development Charges Act;

“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 as amended or any successor thereto; “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; “multiple dwellings” means all dwellings other than single-detached, semi-detached and apartment house dwellings; “municipality” means The Corporation of the Township of Wainfleet; “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; “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;

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“place of worship” means that part of a building or structure that is exempt from taxation as a place of worship under the Assessment Act, as amended or any successor thereto; “regulation” means any regulation made pursuant to the Act;

“residential use” means land or buildings or structures of any kind whatsoever used, designed or intended to be used as living accommodations for one or more individuals; “semi-detached dwelling” means a dwelling unit in a residential building consisting of two dwelling units having one vertical wall or one horizontal walls, but no other parts, attached or another dwelling unit where the residential units are not connected by an interior corridor; “services” (or “service”) means those services designated in Schedule “A” to this by- law; “servicing agreement” means an agreement between a landowner and the municipality relative to the provision of municipal services to specified lands within the municipality; “single detached dwelling unit” means a residential building consisting of one dwelling unit and not attached to another structure and includes mobile homes.

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) services related to a highway; (b) other transportation services; (c) fire protection services; (d) administration services; (e) outdoor recreation; (f) indoor recreation services; and (g) library services.

2.2 The components of the services designated in subsection 2.1 are described in Schedule

A.

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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 3.2 Subject to subsection 3.3, this by-law applies to all lands in the geographic area of the

Township of Wainfleet. 3.3 This by-law shall not apply to lands that are owned by and used for the purposes of:

(a) the Township of Wainfleet or a local board thereof;

(b) a board as defined in section 1(1) of the Education Act;

(c) the Region of Niagara or a local board thereof. 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 of an amendment to a zoning by-law under section 34 of the Planning Act;

(ii) the approval of a minor variance under section 45 of the Planning Act;

(iii) a conveyance of land to which a by-law passed under subsection 50(7) of

the Planning Act applies;

(iv) the approval of a plan of subdivision under section 51 of the Planning Act;

(v) a consent under section 53 of the Planning Act;

(vi) the approval of a description under section 50 of the Condominium Act; or (vii) the issuing of a permit under the Building Code Act, 1992 in relation to a

building or structure.

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(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) a place of worship exempt from taxation under the Assessment Act; (b) bona fide farm (non-residential) buildings.

3.6 Rules with Respect to an Industrial Expansion Exemption

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(iii), if the gross floor area is enlarged by 50 per cent or

less of the lesser of: (A) the gross floor area of the existing industrial building, or

(B) the gross floor area of the existing industrial building before the first enlargement for which:

(i) an exemption from the payment of development charges was granted, or

(ii) 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(iii), if the gross floor area is enlarged by more than 50

per cent or less of the lesser of: (A) the gross floor area of the existing industrial building, or

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(B) the gross floor area of the existing industrial building before the first enlargement for which: (i) an exemption from the payment of development charges was

granted, or (ii) 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 the amount of the development charge that would otherwise be payable multiplied by the fraction determined as follows: (A) determine the amount by which the enlargement exceeds 50 per cent of

the gross floor area before the first enlargement, and (B) divide the amount determined under subsection (A) by the amount of the

enlargement

(iii) For the purposes of calculating the extent to which the gross floor area of an existing industrial building is enlarged in subsection 3.6(ii), the cumulative gross floor area of any previous enlargements 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,

shall be added to the calculation of the gross floor area of the proposed enlargement.

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.

Amount of Charges Residential 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 unit, and calculated with respect to each of the services according to the type of residential use.

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Non-Residential Uses 3.8 The development charges described in Schedule 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 60 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 subsections 3.5 and 3.6 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 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. 4.0 PAYMENT BY SERVICES 4.1 Despite the payments required under subsection 3.10, 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.

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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 the first anniversary date of this by-law and each anniversary date 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

7.0 DATE BY-LAW IN FORCE 7.1 This by-law shall come into force on the day , 2011. 8.0 DATE BY-LAW EXPIRES 8.1 This by-law will expire on the day , 2016, unless it is repealed at an earlier date. Read a first and second time this ____ day of ____________, 2011. _______________________________ MAYOR ________________________________ CLERK

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SCHEDULE “A” TO BY-LAW NO.2011-

DESIGNATED MUNICIPAL SERVICES UNDER THIS BY-LAW

Municipal-wide Services 1. Services Related to a Highway

• Roads, Sidewalks, Streetlights 2. Other Transportation Services

• Depots and Domes • Rolling Stock

3. Fire Protection

• Fire Stations • Fire Pumpers, Aerials, Tankers, Rescue Vehicles • Small Equipment and Gear

4. Administration

• Studies 5. Outdoor Recreation Services

• Parkland Development, Amenities and Trails • Parks Vehicles and Equipment

6. Indoor Recreation Services

• Recreation Facilities

7. Library Services • Library Facilities • Library Materials

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SCHEDULE “B” TO BY-LAW NO. 2011-____

SCHEDULE OF DEVELOPMENT CHARGES

NON-RESIDENTIAL

Single and Semi-Detached Dwelling

Apartments - 2 Bedrooms +

Apartments - Bachelor and 1

BedroomOther Multiples

Special Care/Special

Dwelling Units

(per ft² of Gross Floor Area)

Municipal Wide Services:

Roads and Related 2,671$ 1,572$ 1,034$ 1,792$ 896$ 2.08$

Fire Protection Services 770 453 298 516 258 0.59

Outdoor Recreation Services 622 366 241 417 209 0.22

Indoor Recreation Services 1,681 989 651 1,128 564 0.58

Library Services 493 290 191 331 165 0.17

Administration 477 281 185 320 160 0.32

Total Municipal Wide Services 6,714 3,951 2,600 4,504 2,252 3.96

RESIDENTIAL

Service


APPENDIX F DEVELOPMENT CHARGE RESERVE FUND POLICY

F-1


APPENDIX F - DEVELOPMENT CHARGE RESERVE FUND POLICY F.1 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, this 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. 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);

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• 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.

F-3


Roads and Related

Other Transportation

Services

Fire Protection Services

Outdoor Recreation Services

Indoor Recreation Services

Library 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, - - - - -

Appendix F-1Development Charge Reserve Fund

as at December 31, 200XTownship of Wainfleet

F-4


Capital Project DC Reserve Fund Draw

Operating Fund Draw

Other Reserves Fund

DrawDebt Total

DISCOUNTED SERVICES RESERVE FUND TRANSFERS

Attachment 1

SAMPLE DEVELOPMENT CHARGE RESERVE FUND STATEMENTTownship of Wainfleet

FOR THE YEAR __________

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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

LISTING OF CREDITS UNDER DCA, 1997, s.38 BY HOLDER

Attachment 2

DEVELOPMENT CHARGE RESERVE FUND STATEMENTTownship of Wainfleet

FOR THE YEAR __________


APPENDIX G COMPARISON WITH DEVELOPMENT CHARGES

ELSEWHERE

G-1


Rank Municipality $ per Single Detached Unit

1 Lincoln 10,327$ 2 Hamilton 9,823$ 3 Grimsby 8,383$ 4 Fort Erie 7,060$ 5 Wainfleet (Proposed) 6,714$ 6 Niagara-on-the-lake 6,372$ 7 Thorold 6,323$ 8 Pelham 6,310$ 9 Brantford 6,112$ 10 Port Colborne 6,027$ 11 West Lincoln 5,827$ 12 Welland 5,620$ 13 Haldimand County 5,251$ 14 Brant County 4,080$ 15 Niagara Falls 4,005$

Rank Municipality $ per Sq.Ft. of GFA

1 Lincoln 4.81$ 2 Hamilton 4.70$ 3 Wainfleet (Proposed) 3.96$ 4 Grimsby 3.61$ 5 Welland 3.32$ 6 Niagara-on-the-lake 3.03$ 7 Fort Erie 2.48$ 8 Thorold 2.34$ 9 Brant County 2.29$ 10 West Lincoln 1.82$ 11 Port Colborne 1.77$ 12 Niagara Falls 1.55$ 13 Brantford 0.66$

H:\Wainf leet \2011 DC\[Wainf leet DC 2011.xlsx]Survey

RESIDENTIAL DEVELOPMENT CHARGES 1 (SINGLE DETACHED UNITS)FOR NIAGARA REGION & SURROUNDING MUNICIPALITIES

(AS AT JUNE 1, 2011)

NON-RESIDENTIAL DEVELOPMENT CHARGES 1 (RETAIL)FOR NIAGARA REGION & SURROUNDING MUNICIPALITIES

(AS AT JUNE 1, 2011)

1 Excludes charges for Upper Tier (i.e. Niagara Region) and any water, wastewater, and stormwater services. Hamilton non-residential charge assumes building size = 10,000 sq.ft.

2011 Wainfleet Development Charge Report

Documents

development charge chapter

anticipated development

development charges

new development

existing development

existing development

development charges

service growth