TOWN OF PELHAM DEVELOPMENT CHARGE BACKGROUND STUDY OFFICE CONSOLIDATION NOVEMBER 4, 2013 (As Amended March 5 th and April 28 th, 2014)
CONTENTS EXECUTIVE SUMMARY Page (i) 1. INTRODUCTION 1.1 Purpose of this Document 1-1 1.2 Summary of the Process 1-1 2. CURRENT TOWN OF PELHAM POLICY 2.1 Schedule of Charges 2-1 2.2 Services Covered 2-2 2.3 Timing of DC Calculation and Payment 2-2 2.4 Indexing 2-2 2.5 Redevelopment Credit 2-2 2.6 Exemptions 2-3 3. ANTICIPATED DEVELOPMENT IN THE TOWN OF PELHAM 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 Increase in the Need for Service 4-1 4.4 Local Service Policy 4-5 4.5 Capital Forecast 4-5 4.6 Treatment of Credits 4-5 4.7 Eligible Debt and Committed Excess Capacity 4-6 4.8 Existing Reserve Funds 4-6 4.9 Deductions 4-7 4.9.1 Reduction Required by Level of Service Ceiling 4-7 4.9.2 Reduction for Uncommitted Excess Capacity 4-8 4.9.3 Reduction for Benefit to Existing Development 4-8 4.9.4 Reduction for Anticipated Grants, Subsidies and Other Contributions 4-9 4.9.5 The 10% Reduction 4-9 Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
5. DEVELOPMENT CHARGE ELIGIBLE COST ANALYSIS BY SERVICE 5.1 Introduction 5-1 5.2 Service Levels and 10-Year Capital Costs for Municipal DC Calculation 5-1 5.2.1 Administration 5-1 5.2.2 Recreation Services 5-3 5.2.3 Parks 5-5 5.2.4 Library Services 5-7 5.3 Service Levels and 20-Year Capital Costs for Pelham s DC Calculation 5-10 5.3.1 Fire Services 5-10 5.3.3 Roads and Related 5-14 5.4 Service Levels and Urban Build out Capital Costs for Pelham s DC Calculation 5-19 5.4.1 Wastewater Services 5-19 5.4.2 Water Services 5-19 6. DEVELOPMENT CHARGE CALCULATION 6-1 7. DEVELOPMENT CHARGE POLICY RECOMMENDATIONS AND DEVELOPMENT CHARGE BY-LAW RULES 7.1 Introduction 7-1 7.1.1 Requirements of the DCA 7-1 7.1.2 Council Workshop on Development Charge Rules 7-1 7.2 Development Charge By-Law Structure 7-3 7.3 Development Chare By-Law Rules 7-3 7.3.1 Payment in any Particular Case 7-3 7.3.2 Determination of the Amount of the Charge 7-3 7.3.3 Application to Redevelopment of Land (Demolition and Conversion) 7-4 7.3.4 Exemptions (full or partial) 7-5 7.3.5 Phasing in 7-6 7.3.6 Timing of Collection 7-6 7.3.7 Indexing 7-6 7.3.8 The Applicable Areas 7-6 7.4 Other Development Charge By-Law Provisions 7-6 7.4.1 Categories of Services for Reserve Fund and Credit Purposes 7-6 7.4.2 By-law In-force Date 7-7 7.4.3 Minimum Interest Rate Paid on Refunds and Charges for 7-7 7.5 Other Recommendations 7-7 Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
CONTENTS Page 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 8-2 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 APPENDICES A BACKGROUND INFORMATION ON RESIDENTIAL AND NON-RESIDENTIAL GROWTH FORECAST A-1 B LEVEL OF SERVICE B-1 C LONG TERM CAPITAL AND OPERATING COST EXAMINATION C-1 D DEVELOPMENT CHARGE RESERVE FUND POLICY D-1 E LOCAL SERVICE POLICY E-1 F PROPOSED DEVELOPMENT CHARGE BY-LAW F-1 Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
EXECUTIVE SUMMARY Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
i EXECUTIVE SUMMARY 1. The report provided herein represents the Development Charge Background Study for the Town of Pelham 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 Town; Chapter 3 Summary of the residential and non-residential growth forecasts for the Town; 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: i. Grants, subsidies and other contributions; ii. Benefit to existing development; iii. Statutory 10% deduction (soft services); iv. Amounts in excess of 10 year historic service calculation; v. DC Reserve Funds (where applicable); 5) Net costs then allocated between residential and non-residential benefit; and 6) Net costs divided by growth to provide the DC charge. 3. The growth forecast (Chapter 3) on which the Town-wide development charge is based, projects the following population, housing and non-residential floor area for the ten year (2013-2023), long-term (2013-2033) and urban build-out (2013 build out) periods. Watson & Associates Economists Ltd H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
Revised April 28, 2014 ii The 2013 Development Charge forecast provides for the following growth: Measure 10 Year 20 Year Fonthill Fenwick 2013-2023 2013-2033 2013-Urban Build Out 2013-Urban Build Out (Net) Population Increase 3,315 7,465 6,581 2,096 Residential Unit Increase 1,325 2,950 2,650 812 Non-Residential Gross Floor Area Increase (ft²) 418,700 910,300 475,000 151,100 Source: Watson & Associates Economists Ltd. Forecast 2013 4. On July 20, 2009, the Town of Pelham passed By-law Number #3049(2009), under the Development Charges Act, 1997. By-law Number #3049(2009) came into effect on August 17, 2009 and imposes development charges on residential and non-residential uses. The Town is undertaking a development charge public process with the mandatory public meeting scheduled for March 19th with adoption of the by-law anticipated subsequent to this date. 5. The development charges currently in effect are $6,310 for unserviced single detached dwelling units, $11,417 for the Fenwick municipal-wide plus water/wastewater area (i.e. urban service) and $9,092 for the Fonthill municipal-wide plus water/wastewater area (i.e. urban service) single detached dwelling units. There is currently no non-residential charge for unserviced space, and a $1.00 per square foot of non-residential space charge for both Fenwick and Fonthill areas. This report has undertaken a recalculation of the charges based on future identified needs (presented in Table ES-1 for Residential and Non-residential) and has been provided on a municipal-wide basis for all services except wastewater and water services which are calculated for Fenwick and Fonthill urban service area development only. For municipal-wide services, the calculated single-detached unit charge is $10,413 and the calculated non-residential commercial/ institutional charge (calculated on the same services and on the same basis) is $4.41 per square foot of building area. For the urban service area development of Fenwick and Fonthill, a combined water/wastewater charge was developed for the Fenwick/Fonthill service areas. These combined charges are $2,791 per single detached unit and $1.84 per square foot of building area. The total development charge including municipal-wide services in Fenwick and Fonthill is $13,204 per single detached unit and $6.25 per square foot of building area. These rates are submitted to Council for its consideration. Watson & Associates Economists Ltd H:\Pelham\DC 2013\Report\2013 Draft DC Report - addendum 2.docx
Revised April 28, 2014 6. The Development Charges Act requires a summary to be provided of 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 Table 6-5. A summary of these costs is provided below: iii Total gross expenditures planned over the next five years $ 50,949,354 Less: Benefit to existing development $ 11,657,857 Post planning period benefit $ 13,917,409 Ineligible re: Level of Service $ - Mandatory 10% deduction for certain services $ 572,283 Grants, subsidies and other contributions $ 142,765 Net Costs to be recovered from development charges $ 24,659,040 Hence, $26.29 million (or an annual amount of $5.26 million) will need to be contributed from taxes, rates and other recoveries (e.g. grants, contributions from other municipalities, etc.). Based on the above capital listing, the Town plans to spend $50.95 million over the next five years of which $24.66 million (48%) is recoverable from development charges. Of this net amount, $21.26 million is recoverable from residential development and $3.40 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 Roads & Related and Fire Protection Services are calculated based on a 20 year forecast. All other municipal wide services, which include Parks, Recreation, Library and Administration, are calculated based on a 10 year forecast. Area specific services which include Water and Sanitary Sewers are calculated based on a build out urban forecast. However, Council will consider the findings and recommendations provided for in the report and, in conjunction with public input, approve such policies and rates it deems appropriate. These directions will refine the draft DC by-law which is included in Appendix F. These decisions may include: adopting the charges and policies recommended herein; considering additional exemptions to the by-law; Watson & Associates Economists Ltd H:\Pelham\DC 2013\Report\2013 Draft DC Report - addendum 2.docx
iv considering reductions in the charge by class of development (obtained by removing certain services on which the charge is based and/or by a general reduction in the charge); and consider the timing of collection (i.e. whether some or all components shall be received at the time of building permit issuance or earlier). Watson & Associates Economists Ltd H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
Revised April 28, 2014 v TABLE ES-1 SCHEDULE OF DEVELOPMENT CHARGES Town Wide Services: Service Single and Semi- Detached Dwelling RESIDENTIAL Apartments - 2 Bedrooms + Apartments - Bachelor and 1 Bedroom All Other Dwellings NON-RESIDENTIAL (per ft² of Gross Floor Area) Roads and Related 5,079 3,281 2,215 3,547 3.09 Fire Protection Services 377 244 164 263 0.23 Outdoor Recreation Services 2,609 1,685 1,138 1,822 0.41 Indoor Recreation Services 1,011 653 441 706 0.16 Library Services 730 472 318 510 0.12 Administration 607 392 265 424 0.40 Total Town Wide Services 10,413 6,727 4,541 7,272 4.41 SCHEDULE OF WATER & SANITARY SEWER SERVICES DEVELOPMENT CHARGES FOR FENWICK AND FONTHILL Service RESIDENTIAL NON-RESIDENTIAL Single and Semi- Apartments - 2 Apartments - All Other (per ft² of Gross Floor Water & Sanitary Sewer Services: Wastewater Services 1,594 1,030 695 1,113 1.05 Water Services 1,197 773 522 836 0.79 Total Water & Sanitary Sewer Services 2,791 1,803 1,217 1,949 1.84 Watson & Associates Economists Ltd. Pelham DC 2013 add
1. INTRODUCTION Watson & Associates Economists Ltd H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
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 Town of Pelham. The Town retained Watson & Associates Economists Ltd. (Watson), to undertake the development charges (DC) study process in 2013. Watson worked with staff of the Town 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 Town 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 F). In addition, the report is designed to set out sufficient background on the legislation (Chapter 4), current Pelham DC policy (Chapter 2) and the policies underlying the proposed by-laws, 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 November 19, 2013. Its purpose is to present the study to the public and to solicit public input. The meeting is also being held to answer any questions regarding the study s purpose, methodology and the proposed modifications to the Town s development charges. Watson & Associates Economists Ltd H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
Revised April 28, 2014 In accordance with the legislation, the background study and proposed DC by-law will be available for public review on November 4, 2013. 1-2 The process to be followed in finalizing the report and recommendations includes: consideration of responses received prior to, at or immediately following the Public Meeting; and finalization of the report and Council consideration of the by-laws on subsequent to the public meeting. Figure 1-1 outlines the proposed schedule to be followed with respect to the development charge by-law adoption process. FIGURE 1-1 SCHEDULE OF KEY DEVELOPMENT CHARGE PROCESS DATES FOR THE TOWN OF PELHAM August & September 1. Data collection 2013 2. Council Workshop September 30, 2013 3. Public Meeting Ad placed in newspaper(s) October 24, 2013 4. Background study and proposed by-law available to public November 4, 2013 5. Addendum Report No.1 March 5, 2014 6. Public meeting of Council March 19, 2014 7. Addendum Report No.2 April 28, 2014 8. Council considers adoption of background study and passage of by-law 9. Newspaper notice given of by-law passage Subsequent to Public Meeting By 20 days after passage 10. Last day for by-law appeal 40 days after passage 11. Town makes available pamphlet (where by-law not appealed) By 60 days after in force date Watson & Associates Economists Ltd H:\Pelham\DC 2013\Report\2013 Draft DC Report - addendum 2.docx
2. CURRENT TOWN OF PELHAM POLICY Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
2-1 2. CURRENT TOWN OF PELHAM 2.1 Schedule of Charges On July 20, 2009, the Town of Pelham passed By-law Number 3049(2009) under the Development Charges Act, 1997. By-law Number 3049(2009), came into effect on August 17, 2009. It imposes development charges on residential and non-residential uses. Table 2-1 provides the rates currently in effect (as well as a breakdown of the charges by service). Table 2-1 Town of Pelham Development Charges Effective August 17, 2009 Service Single & Semi Detached Apartments & Multiples with >= 2 Bedrooms Residential Apartments & Multiples with < 2 Bedrooms All Other Dwellings Non-Residential per ft² Roads and Related 4,041 2,544 1,670 2,916 - Fire Protection Services 214 135 88 154 - Parks & Recreation 1,407 886 581 1,015 - Library Services 465 292 192 335 - Administration 183 115 76 132 - Total 6,310 3,972 2,607 4,552 - Fenwick Water 1,591 1,002 657 1,147 0.50 Sanitary Sewer 3,516 2,313 1,453 2,536 0.50 Total 5,107 3,315 2,110 3,683 1.00 Fonthill Water 1,782 1,122 736 1,286 0.50 Sanitary Sewer 1,000 629 413 722 0.50 Total 2,782 1,751 1,149 2,008 1.00 The development charges set out above came into effect on August 17, 2009 and apply to all lands within the Town of Pelham. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
2-2 2.2 Services Covered The following are the town-wide services covered under By-law 3049(2009): Roads and Related; Fire Protection Services; Parks and Recreation; Library Services; and Administration. In addition the area specific services covered under By-law 3049(2009) are: Fenwick Water and Sanitary Sewer Services; and Fonthill Water and Sanitary Sewer Services. 2.3 Timing of DC Calculation and Payment Development charges are calculated and payable in full in money or by provision of services as may be agreed upon, or by credit granted under the Act, on the date that the building permit is issued in relation to a building or structure on land to which a development charge applies. Where development charges apply to land in relation to which a building permit is required the building permit shall not be issued until the development charge has been paid in full. 2.4 Indexing By-law 3049(2009), provides for the discretionary annual indexing of charges on April 1st of each year, without amendment to the by-law, in accordance with the prescribed index in the Act. 2.5 Redevelopment Allowance A redevelopment allowance shall be allowed where, as a result of development, a building or structure existing on the land within five years 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. An allowance can, in no case, exceed the amount of the development charge that would otherwise be payable. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
2-3 2.6 Exemptions The by-law provides for non-statutory exemptions with respect to: a. a hospital as defined under the Public Hospitals Act; b. that portion of a place of worship exempt from taxation under the Assessment Act; c. a garden suite; d. a farm help house; e. a farm building; f. Institutions that are exempt from municipal taxation under the following legislation: 1. Social Housing Reform Act, 2. Long Term Care Act, or 3. Mental Health Act, save and except those that are operated for profit. g. land developed for purposes where the development is clearly exempt from taxation under Provincial or Federal Legislation. The by-law also provides a 75% development charge exemption in the Downtown areas of Fenwick and Fonthill for specific development defined in s.4(7)(a) 1, and subject to certain conditions set out in paragraph (c). 1 Conversion of existing development or vacant lots to additional residential units and/or commercial space. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
3. ANTICIPATED DEVELOPMENT IN THE TOWN OF PELHAM Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
3-1 3. ANTICIPATED DEVELOPMENT IN THE TOWN OF PELHAM 3.1 Requirement of the Act Chapter 4 provides the methodology for calculating a development charge as per the Development Charges Act, 1997. Figure 4-1 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 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 for the anticipated development for which the Town of Pelham will be required to provide services, over a 10-year (2013-2023), 20-year (2013-2033) and urban buildout time horizon. 3.2 Basis of Population, Household and Non-Residential Gross Floor Area Forecast In compiling the growth forecast for the Town of Pelham, the following other reports were consulted to help assess annual residential and non-residential development activity over the forecast period, including: Official Plan (OP) of the Town of Pelham 2012 The population forecasts contained in the 2013 DC Background Study are consistent with the 20-year population, housing and employment growth analysis contained within the Town s 2012 OP. Niagara Region Growth Management Strategy (GMS), A Preferred Growth Option for Niagara Phase 3 and 4 Report, December, 2008 The Niagara GMS (Niagara 2031) was approved by the Niagara Region Committee of the Whole on February 10, 2009. For the purposes of the Town s 2013 DC Background Study, Pelham s population and employment forecast has been derived from the Option D growth forecast. The short-term population and housing forecast has been reduced from that reported in the Option D forecast to reflect the 2011 Census and recent development trends. Town of Pelham 2009 Development Charge Background Study The population, housing and employment forecasts contained within the Town of Pelham 2009 DC Background Study have been reviewed and updated regarding the amount, location and timing of growth identified for Pelham. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
3-2 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 Town and describes the basis for the forecast. The results of the residential growth forecast analysis are summarized in Table 3-1 and Schedule 1 in Appendix A. As identified in Table 3-1 and Schedule 1, the Town s population is anticipated to reach approximately 20,110 by 2023, 24,260 by 2033, and 25,620 by urban buildout, resulting in an increase of 3,320, 7,470, and 8,830 persons respectively over the 10-year, 20-year and buildout forecast periods, respectively. 1 FIGURE 3-1 DEMAND SUPPLY Historical Housing Construction Residential Units in the Development Process Forecast of Residential Units by Structure Type Employment Market by Local Municipality, Economic Outlook Local, Regional and Provincial Intensification Occupancy Assumptions Designated Gross Population Increase Decline in Existing Population Servicing Capacity Net Population Increase HOUSEHOLD FORMATION-BASED POPULATION AND HOUSEHOLD PROJECTION MODEL 1 Population figures exclude the net Census undercount which is estimated at approximately 4%. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
TABLE 1 TOWN OF PELHAM RESIDENTIAL GROWTH FORECAST SUMMARY Housing Units Person Per Unit (PPU) Total Households Multiple Dwellings 2 Apartments3 Other Singles & Semi- Detached Population (Including Census Undercount)¹ Population (Excluding Census Undercount) Year Mid 2001 15,272 15,880 4,855 235 505 5 5,600 2.84 Mid 2006 16,155 16,800 5,060 340 515 10 5,925 2.84 Mid 2011 16,590 17,250 5,325 470 395 10 6,200 2.78 Mid 2013 16,791 17,460 5,395 487 395 10 6,287 2.78 Mid 2023 20,106 20,910 6,457 682 464 10 7,612 2.75 Mid 2033 24,256 25,226 7,675 980 572 10 9,237 2.73 Buildout (2036) 25,619 26,643 7,837 1,196 844 10 9,887 2.69 Mid 2001 - Mid 2006 883 920 205 105 10 5 325 Mid 2006 - Mid 2011 435 450 265 130-120 0 275 Mid 2011 - Mid 2013 201 210 70 17 0 0 87 Mid 2013 - Mid 2023 3,315 3,450 1,062 195 69 0 1,325 Mid 2013 - Mid 2033 7,465 7,766 2,280 493 177 0 2,950 Mid 2013 - Buildout (2036) 8,828 9,183 2,442 709 449 0 3,600 Source: Watson & Associates Economists Ltd., June 2013. 1. Census Undercount estimated at approximately 4%. Note: Population Including the Undercount has been rounded. 2. Includes townhomes and apartments in duplexes. 3. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. 3-3 Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
3-4 FIGURE 3-2 2012-2032 HOUSING FORECAST¹ 200 180 180 180 180 180 180 160 155 155 155 155 155 155 155 140 140 140 140 140 140 120 100 103 103 100 100 89 80 60 40 77 71 67 65 60 47 43 39 40 20 0 Years Historical Low Density Medium Density High Density Historical Average Source: Historical housing activity (2002-2012) based on Statistics Canada building permits, Catalogue 64-001-XIB 1. Growth Forecast represents start year Housing Units Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
3-5 1. Unit Mix (Appendix A Schedules 1, 6 and 7) The unit mix for the Town, outlined in Schedule 1, was derived from an analysis of the Town s short-term residential supply (as per Schedule 6, Appendix A), as well as through an analysis of historical development activity (as per Schedule 7, Appendix A). Based on the above indicators, the 20-year household growth forecast is comprised of a unit mix of 77% low density (single family and semi-detached), 17% medium density (multiples except apartments) and 6% high density (bachelor, 1 bedroom and 2+ bedroom apartments). 2. Geographic Location of Residential Development, Appendix A, Schedules 2 and 6 Schedule 2 summarizes the anticipated amount, type and location of development for Pelham by urban and rural area. Schedule 6 summarizes the Town s potential supply of future housing units available in the development approvals process. In accordance with available supply and anticipated demand, forecast housing growth has been allocated to the following areas over the 20-year forecast period: O Fonthill 73% O Fenwick 23% O Rural 4% 3. Planning Period Short-, medium- and long-term time horizons are required for the DC process. The DCA limits the planning horizon for certain services such as parks, recreation and libraries to a 10-year planning horizon. Roads, water and wastewater services utilize a longer planning period. 4. Population in New Units (Appendix A - Schedules 3 through 5) The number of permanent housing units to be constructed in Pelham during the short-, medium- and long-term periods is presented on Figure 3-2 (an average of approximately 148 total housing units per annum over the 20-year time horizon). Population in new units are derived from Schedules 3, 4a, 4b, and 5, which incorporate historical development activity, anticipated units by structure type (see unit mix discussion) and average persons per unit by dwelling type for new units. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
3-6 Schedules 8a and 8b summarize the average number of persons per unit (PPU) for new housing units by age and structure type, based on 2006 custom Census data for the Town of Pelham and Niagara Region. Due to a lack of data at the Town level, the average PPU for new apartment units has been derived from Niagara Region data. The total calculated PPU for each density type 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 each density type, the adjusted 20-year average PPU is as follows: o Low density (single and semi-detached): 3.05 o Medium density (townhomes and apartments in duplexes): 2.13 o High density (apartments): 1.71 5. Existing Units and Population Change (Appendix A - Schedules 2, 3, 4 and 5) Existing households for mid-2013 are based on the 2011 Census households, plus estimated residential units constructed between mid-2011 and mid-2013, assuming a 6-month lag between construction and occupancy (see Schedule 3). The decline in average occupancy levels for existing housing units is calculated in Schedules 3, 4 and 5, by aging the existing population over the forecast period. The forecast population decline in existing households over the 20-year forecast period is approximately 840. 6. Employment (Appendix A, Schedule 10a, 10b, 10c, 11 and 12) The employment forecast is largely based on the activity rate method, which is defined as the number of jobs in a municipality divided by the number of residents. Key employment sectors include primary, industrial, commercial/ population-related, institutional, and work at home, which are considered individually below. The 2011 employment estimate 1 (place of work) for the Town of Pelham is outlined in Schedule 10a. The 2011 employment base is comprised of the following sectors: O 270 primary (7%); O 820 work at home employment (21%); O 639 industrial (16%); O 1,460 commercial/population-related (38%); and O 697 institutional (18%). 1 2011 employment derived by Watson & Associates Economists Ltd. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
3-7 The 2011 total employment estimate, excluding employees with no fixed place of work (NFPOW), 1 is approximately 3,885. The 2011 employment base, including no fixed place of work (NFPOW), totals approximately 4,295 employees. Total employment 2 for the Town of Pelham is anticipated to reach approximately 5,334 by mid-2023, 6,380 by mid-2033 and 6,670 by buildout. This represents an employment increase of 950 for the 10-year forecast period, 2,000 for the 20- year forecast period and 2,290 from 2013 to buildout. Schedule 10b, summarizes the employment forecast excluding work at home and NFPOW employment, which is the basis for the DC employment forecast. The impact on municipal services from work at home employees has already been included in the population forecast. The impacts on municipal services regarding NFPOW employees are less clear, given the transient nature of these employees. Furthermore, since these employees have no fixed work address, they cannot be captured in the non-residential gross floor area (GFA) calculation. Accordingly, work at home and NFPOW employees have been removed from the DC calculation. Total employment for the Town of Pelham (excluding work at home and NFPOW employment) is anticipated to reach approximately 4,650 by mid-2033. This represents an employment increase of approximately 1,520 during the 20-year forecast period. 7. Non-Residential Sq.ft. Estimates (Gross Floor Area (GFA), Appendix A, Schedule 10b) Square footage estimates were calculated in Schedule 10b, based on the following employee density assumptions: O 1,300 sq.ft. per employee for industrial; O 500 sq.ft. per employee for commercial/population related; and O 700 sq.ft. per employee for institutional employment. The Town-wide incremental Gross Floor Area (GFA) increase is anticipated to be 418,750 over the 10-year forecast period, 910,330 over the 20-year forecast period and 1,040,140 to buildout. In terms of percentage growth, the 20-year incremental GFA forecast by sector is broken down as follows: o industrial 38%; o commercial/population-related 49%; and o institutional 13%. 1 Statistics Canada defines "no fixed place of work" (NFPOW) employees as, "persons who do not go from home to the same work place location at the beginning of each shift. Such persons include building and landscape contractors, travelling salespersons, independent truck drivers, etc. 2 Figure includes work at home (WAH) and no fixed place of work (NFPOW). Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
4. THE APPROACH TO CALCULATION OF THE CHARGE Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
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 Town. 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. 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 Town s development charge are indicated with a Yes. 4.3 Increase in the Need for Service The development charge calculation commences with an estimate of the increase in the need for service attributable to the anticipated development, for each service to be covered by the by-law. There must be some form of link or attribution between the anticipated development and the estimated increase in the need for service. While the need could conceivably be expressed generally in terms of units of capacity, s.s.5(1)3, which requires that Municipal Council indicate that it intends to ensure that such an increase in need will be met, suggests that a project-specific expression of need would be most appropriate. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
4-2 Figure 4-1 The Process of Calculating a Development Charge Under the DCA, 1997 Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
4-3 TABLE 4-1 CATEGORIES OF MUNICIPAL SERVICES TO BE ADDRESSED AS PART OF THE CALCULATION CATEGORIES OF MUNICIPAL SERVICES 1. Services Related to a Highway 2. Other Transportation Services 3. Storm Water Drainage and Control Services ELIGIBILITY FOR INCLUSION IN THE DC CALCULATION Yes Yes Yes Yes Yes n/a n/a n/a n/a Yes Yes n/a n/a n/a n/a n/a 4. Fire Protection Services Yes Yes Yes 5. Outdoor Recreation Services (i.e. Parks and Open Space) Ineligible Yes Yes Yes 6. Indoor Recreation Services Yes n/a 7. Library Services Yes 8. Electrical Power Services 9. Provision of Cultural, Entertainment and Tourism Facilities and Convention Centres Yes Ineligible Ineligible Ineligible Ineligible Ineligible SERVICE COMPONENTS 1.1 Arterial roads 1.2 Collector roads 1.3 Area municipal roads 1.4 Traffic signals 1.5 Sidewalks and streetlights 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 stock 1 2.7 Ferries 2.8 Airport facilities 3.1 Main channels and drainage trunks 3.2 Channel connections 3.3 Retention/detention ponds 4.1 Fire stations 4.2 Fire pumpers, aerials and rescue vehicles 4.3 Small equipment and gear 5.1 Acquisition of land for parks, woodlots and ESAs 5.2 Development of municipal parks 5.3 Development of special purpose parks 5.4 Parks rolling stock 1 and yards 6.1 Arenas, indoor pools, fitness facilities, community centres, etc. (including land) 6.2 Recreation vehicles and equipment 1 7.1 Public library space (incl. furniture and equipment) 7.2 Library materials 8.1 Electrical substations 8.2 Electrical distribution system 8.3 Electrical system rolling stock 1 9.1 Cultural space (e.g. art galleries, museums and theatres) 9.2 Tourism facilities and convention centres MAXIMUM POTENTIAL DC RECOVERY % 100 100 0 100 0-100 90 90 90 90 100 100 90 90 0-100 0-100 0-100 100 100 100 0 90 90 90 90 90 90 90 0 0 0 0 0 1 with 7+ year life time *same percentage as service component to which it pertains computer equipment excluded throughout Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
4-4 CATEGORIES OF MUNICIPAL SERVICES ELIGIBILITY FOR INCLUSION IN THE DC CALCULATION 10. Wastewater Services n/a Yes n/a Yes 11. Water Supply Services n/a Yes n/a n/a 12. Waste Management Ineligible Services Ineligible Ineligible 13. Police Services n/a n/a n/a SERVICE COMPONENTS 10.1 Treatment plants, storage 10.2 Sewage trunks 10.3 Local systems 10.4 Vehicles and equipment 11.1 Treatment plants, pumping stations, storage 11.2 Distribution systems 11.3 Local systems 11.4 Vehicles and equipment 12.1 Collection, transfer vehicles and equipment 12.2 Landfills and other disposal facilities 12.3 Other waste diversion facilities 13.1 Police detachments 13.2 Police rolling stock 1 13.3 Small equipment and gear MAXIMUM POTENTIAL DC RECOVERY % 100 100 0 100 100 100 0 100 0 0 0 100 100 100 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 90 18.2 Vehicles 1 90 19. Hospital Provision Ineligible 19.1 Hospital capital contributions 0 20. Provision of Headquarters for the General Administration of Municipalities and Area Municipal Boards Ineligible Ineligible Ineligible 21. Other Services Yes Yes 20.1 Office space (all services) 20.2 Office furniture 20.3 Computer equipment 21.1 Studies in connection with acquiring buildings, rolling stock, materials and equipment, and improving land 2 and facilities, including the DC background study cost 21.2 Interest on money borrowed to pay for growth-related capital 0 0 0 0-100 0-100 Eligibility for Inclusion in the DC Description Calculation Yes Municipality provides the service - service has been included in the DC Calculation No Municipality provides the service - service has not been included in the DC Calculation n/a Municipality does not provide the service Ineligible Service is ineligible for inclusion in the DC calculation Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
4-5 4.4 Local Service Policy Some of the need for services generated by additional development consists of local services related to a plan of subdivision. As such, they will be required as a condition of subdivision agreements or consent conditions. The Town of Pelham uses the local service guidelines provided in Appendix E. 4.5 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 Town s approved and proposed capital budgets and master servicing/needs studies. 4.6 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. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
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. There are no outstanding DC credit obligations that would affect the development charge calculations. 4-6 4.7 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, Council must have expressed a clear intention that it would be paid for by development charges or other similar charges. For example, this may have been done as part of previous development charge processes. It is noted that projects which have been debentured to date and to which the principal and interest costs need to be recovered are included within the capital detail sheets. 4.8 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. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
The alternative would involve the Town spending all reserve fund monies prior to renewing each by-law, which would not be a sound basis for capital budgeting. Thus, the Town will use these reserve funds for the Town s cost share of applicable development-related projects, which are required but have not yet been undertaken, as a way of directing the funds to the benefit of the development which contributed them (rather than to future development, which will generate the need for additional facilities directly proportionate to future growth). The Town s Development Charge Reserve Fund Balance by service at December 31, 2012 is shown below: Service Totals Public Works $12,900.00 Fire Protection Services $151,666.00 Parks and Recreation $568,203.00 Library Services $125,927.00 General Government ($74,088.00) Stormwater Drainage and Control Services $21,093.00 Wastewater Services $149,419.00 Water Services $205,894.00 Total $1,161,014.00 4-7 4.9 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: 4.9.1 Reduction Required by Level of Service Ceiling This is designed to ensure that the increase in need included in 4.3 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. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
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. 4-8 The average service level calculation sheets for each service component in the DC calculation are set out in Appendix B. 4.9.2 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 Town s excess capacity, other than excess capacity which is committed (discussed above in 4.7). Excess capacity is undefined, but in this case must be able to meet some or all of the increase in need for service, in order to potentially represent a deduction. The deduction of uncommitted excess capacity from the future increase in the need for service, would normally occur as part of the conceptual planning and feasibility work associated with justifying and sizing new facilities, e.g. if a road widening to accommodate increased traffic is not required because sufficient excess capacity is already available, then widening would not be included as an increase in need, in the first instance. 4.9.3 Reduction for Benefit to Existing Development This step involves a further reduction to the need, by the extent to which such an increase in service would benefit existing development. The level of services cap in 4.9.1 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. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
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. 4-9 4.9.4 Reduction for Anticipated Grants, Subsidies and Other Contributions This step involves reducing the capital costs necessary to provide the increased services by capital grants, subsidies and other contributions made or anticipated by Council and in accordance with various rules such as the attribution between the share related to new vs. existing development. (i.e. some grants and contributions may not specifically be applicable to growth, such as the COMRIF Grant program or where Council targets fundraising as a measure to offset impacts on taxes.) O.Reg 82.98.s.6. 4.9.5 The 10% Reduction Paragraph 8 of s.s.(1) of the DCA requires that, the capital costs must be reduced by 10 percent. This paragraph does not apply to water supply services, waste water services, storm water drainage and control services, services related to a highway, police and fire protection services. The primary services that the 10% reduction does apply to include services such as parks, recreation, libraries, childcare/social services, Provincial Offences Act, ambulance, homes for the aged, health and transit. The 10% is to be netted from the capital costs necessary to provide the increased services, once the other deductions have been made, as per the infrastructure costs sheets in Chapter 5. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
5. DEVELOPMENT CHARGE ELIGIBLE COST ANALYSIS BY SERVICE Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
5. DEVELOPMENT CHARGE ELIGIBLE COST ANALYSIS BY SERVICE 5-1 5.1 Introduction This chapter outlines the basis for calculating development charge eligible costs for the development charges to be applied on a uniform basis. In each case, the required calculation process set out in s.5(1) paragraphs 2 to 8 in the DCA, 1997, and described in Chapter 4, was followed in determining DC eligible costs. The nature of the capital projects and timing identified in the Chapter reflects Council s current intention. However, over time, municipal projects and Council priorities change and accordingly, Council s intentions may alter, and different capital projects (and timing) may be required to meet the need for services required by new growth. 5.2 Service Levels and 10-Year Capital Costs for DC Calculation This section evaluates the development-related capital requirements for all of the softer services over a ten-year planning period. Each service component is evaluated on two format sheets: the average historical ten-year level of service calculation (see Appendix B), which caps the DC amounts; and the infrastructure cost calculation, which determines the potential DC recoverable cost. 5.2.1 Administration The DCA permits the inclusion of studies undertaken to facilitate completion of the Town s capital works program. The Town has made provision for the inclusion of new studies undertaken to facilitate this DC process, as well as other studies which benefit growth (in whole or part). The listing of studies included in the DC includes the following: East Fonthill and Fenwick Secondary Plans Master Plan; East Fonthill Study Consortium; and Development Charges studies. The cost of these studies including the DC reserve fund deficit balance of $74,088 is $1,019,434. The net growth-related capital cost, after the mandatory 10% deduction, where applicable, is $918,783, which has been included in the development charge. This cost has been allocated 82% residential and 18% non-residential based on the incremental growth in population to employment, for the 10-year forecast period. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
5-2 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service:Administration Studies Less: Less: Potential DC Recoverable Cost Prj.No Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate 2013$ Post Period Benefit Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Residential Share 2013-2022 82% 18% 1 East Fonthill Secondary Plan 2013 6,650 0 6,650 0 6,650 133 6,517 5,321 1,196 2 Fenwick Secondary Plan 2013 9,500 0 9,500 0 9,500 190 9,310 7,601 1,709 3 Master Plan Town owned Lands 2013 20,000 0 20,000 0 20,000 2,000 18,000 14,696 3,304 4 Development Charge Background Study 2013 50,000 0 50,000 0 50,000 5,000 45,000 36,740 8,260 5 East Fonthill Study Consortium 2013 649,196 0 649,196 0 649,196 64,920 584,276 477,024 107,252 6 East Fenwick Secondary Plan 2014 160,000 0 160,000 0 160,000 16,000 144,000 117,567 26,433 7 Development Charge Background Study 2018 50,000 0 50,000 0 50,000 5,000 45,000 36,740 8,260 Subtotal Other (e.g. 10% Statutory Deduction) Total Non- Residential Share Add: Net 2013 June 30 DC Reserve Fund deficit balance 74,088 0 74,088 0 74,088 7,409 66,679 54,439 12,240 Total 1,019,434 0 1,019,434 0 0 1,019,434 100,651 918,783 750,127 168,656 Watson & Associates Economists Ltd. Pelham DC 2013
5-3 5.2.2 Recreation Services The Town operates multiple indoor recreation facilities providing a total of 38,162 sq.ft of space. The average historic level of service for the previous ten years has been approximately 2.3 sq.ft. of space per capita or an investment of $441 per capita. Based on this service standard, the Town would be eligible to collect approximately $1,461,875 from DC s for facility space. The Town has provided for an Arena and Community Centre over the 10 year forecast period. The gross capital cost of this provision is $32,000,000 with a post period benefit of $27,338,125 and a benefit to existing development of $3,200,000. Therefore, the balance before the mandatory 10% deduction is $1,461,875. The net growth capital cost after the mandatory 10% deduction is $1,315,687 and has been included in the development charge. While indoor recreation service usage is predominately residential-based, there is some use of the facility by non-residential users. To acknowledge this use the growth-related capital costs have been allocated 95% residential and 5% non-residential. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
5-4 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service:Indoor Recreation Facilities Less: Less: Potential DC Recoverable Cost Prj.No Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate 2013$ Post Period Benefit Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Residential Share 2013-2022 95% 5% 1 Provision for Arena and Community 2013-22 32,000,000 27,338,125 4,661,875 3,200,000 1,461,875 146,187 1,315,687 1,249,903 65,784 Centre Subtotal Other (e.g. 10% Statutory Deduction) Total Non- Residential Share Total 32,000,000 27,338,125 4,661,875 3,200,000 0 1,461,875 146,187 1,315,687 1,249,903 65,784 Watson & Associates Economists Ltd. Pelham DC 2013
5-5 5.2.3 Parks The Town currently has 56 hectares of parkland within its jurisdiction. The parkland consists of various sized neighbourhood and community parks. The Town has sustained the current level of service over the historic 10-year period (2003-2012), with an average of 3.5 acres of parkland per 1,000 population. Including parkland and parkland amenities (e.g. ball diamonds, playground equipment, soccer fields, etc.), the level of service provided is approximately $1,138, per capita. When applied over the forecast period, this average level of service translates into a DC-eligible amount of $3,780,581. Based on the projected growth over the 10-year forecast period, the Town has identified $6,848,265 in future growth capital costs for parkland development. These projects include additional parkland development, playground structures, splash pads, skateboard parks and other amenities. Of the total cost, deductions have been made to reflect a post period benefit of $1,874,940, benefit to existing development including the DC reserve fund balance of $568,203 equal to $1,059,980 and grant funding and contributions from local groups equal to $142,765. The net growth capital cost after the mandatory 10% deduction and the allocation of reserve balance is $3,393,522. As the predominant users of parks tend to be residents of the Town, the forecast growth-related costs have been allocated 95% to residential and 5% to non-residential. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
5-6 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service: Parkland Development Prj.No Less: Less: Potential DC Recoverable Cost Residential Share 2013-2022 95% 5% 1 Skateboard Park 2013 440,765 0 440,765 44,077 142,765 253,924 25,392 228,531 217,105 11,427 2 East Fonthill Parkland 2018 1,580,000 943,500 636,500 79,000 557,500 55,750 501,750 476,663 25,088 3 East Fenwick Parkland 2018 860,000 514,000 346,000 43,000 303,000 30,300 272,700 259,065 13,635 4 Playground Equipment 2018-22 125,000 75,000 50,000 6,250 43,750 4,375 39,375 37,406 1,969 5 Playground Equipment 2018-22 125,000 75,000 50,000 6,250 43,750 4,375 39,375 37,406 1,969 6 Playground Equipment 2018-22 125,000 75,000 50,000 6,250 43,750 4,375 39,375 37,406 1,969 7 Playground Equipment 2018-22 125,000 75,000 50,000 6,250 43,750 4,375 39,375 37,406 1,969 8 Splash Pad 2014 200,000 0 200,000 20,000 180,000 18,000 162,000 153,900 8,100 9 Splash Pad 2018-22 200,000 117,440 82,560 10,000 72,560 7,256 65,304 62,039 3,265 10 Centennial Park Extension 2013-17 2,346,500 0 2,346,500 234,650 2,111,850 211,185 1,900,665 1,805,632 95,033 11 Kundra Park 2014 100,000 0 100,000 5,000 95,000 9,500 85,500 81,225 4,275 12 Increased Service Needs Attributable to Anticipated Development Timing (year) Trail Development - Centennial Park to Poth Street Gross Capital Cost Estimate 2013$ Post Period Benefit Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Non- Residential Share 2014 158,000 0 158,000 7,900 150,100 15,010 135,090 128,336 6,755 13 MSSP Parking Lot 2014 120,000 0 120,000 6,000 114,000 11,400 102,600 97,470 5,130 14 Long Board Skate Prk 2014 130,000 0 130,000 6,500 123,500 12,350 111,150 105,593 5,558 15 Centennial Park Building 2016 213,000 0 213,000 10,650 202,350 20,235 182,115 173,009 9,106 Subtotal Other (e.g. 10% Statutory Deduction) Total Less :2012 December 31 Net DC Reserve Fund balance 568,203-568,203-56,820-511,383-485,814-25,569 Total 6,848,265 1,874,940 4,973,325 1,059,980 142,765 3,770,581 377,058 3,393,522 3,223,846 169,676 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
5-7 5.2.4 Library Services The Town provides two library facilities which total 9,385 sq.ft in size. Over the past ten years, the average level of service was 0.61 sq. ft. of space per capita or an investment of $158 per capita. Based on this service standard, the Town would be eligible to collect approximately $525,304 from DC s for library facility space (over the ten year period). Provisions for additional library space as well as a provision for furniture and equipment for the space have been identified for inclusion in the DC for library facilities. The gross cost of these projects is $1,365,000, with a post period benefit of $372,519 and an existing benefit of $467,177 (including the DC Library Reserve Fund balance of $125,927 at December 31, 2012). For library facilities, $472,774 has been included in the DC calculation based on the 10 year growth projections (after the 10% deduction). The Town has an inventory of library collection of 58,001 items. The collection includes various items such as books, periodicals, audio visual materials and electronic, all of which have a total value of approximately $2,441,000. Over the past ten years, the average level of service was 3.8 collection items per capita or an investment of $160 per capital. Based on this service standard, the Town would be eligible to collect approximately $530,807 form Dc s for library collection items (over the ten year period). Base on the projected growth over the 10-year forecast period (2013-2022), provisions for additional collection items have been identified for future capital. The gross capital cost for these items amounts to $558,000 with an existing development benefit amount of $27,900. The net growth related cost to be included in the DC is $477,090 (after the mandatory 10% deduction). While library usage is predominately residential-based, there is some use of the facility by nonresidential users, for the purpose of research. To acknowledge this use the growth-related capital costs have been allocated %95 residential and 5% non-residential. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
5-8 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service Library Facilities Prj.No Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate 2013$ Post Period Benefit Net Capital Cost Benefit to Existing Development Less: Less: Potential DC Recoverable Cost Grants, Subsidies and Other Contributions Residential Share 2013-2022 95% 5% 1 Provision for additional library space 1 2014-2019 1,300,000 372,519 927,481 325,000 602,481 60,248 542,233 515,121 27,112 2 Furniture & equipment for additional 65,000 65,000 16,250 48,750 4,875 43,875 41,681 2,194 space Less :2012 December 31 Net DC Reserve Fund balance 125,927-125,927-12,593-113,334-107,668-5,667 Subtotal Other (e.g. 10% Statutory Deduction) Total Non- Residential Share Total 1,365,000 372,519 992,481 467,177 0 525,304 52,530 472,774 449,135 23,639 1 Provision may include a new location for the replacement and addition for Maple Acres Branch. Also may include enhancement of program space at the existing main branch. Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
5-9 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service Library Collection Materials Prj.No Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate 2013$ Post Period Benefit Net Capital Cost Benefit to Existing Development Less: Less: Potential DC Recoverable Cost Grants, Subsidies and Other Contributions Residential Share 2013-2022 95% 5% 1 Additional library materials 2009-2013 279,000 0 279,000 13,950 265,050 26,505 238,545 226,618 11,927 2 Additional library materials 2014-2018 279,000 0 279,000 13,950 265,050 26,505 238,545 226,618 11,927 Subtotal Other (e.g. 10% Statutory Deduction) Total Non- Residential Share Total 558,000 0 558,000 27,900 0 530,100 53,010 477,090 453,236 23,855 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
5-10 5.3 Service Levels and 20 - Year Capital Costs for Pelham s DC Calculation This section evaluates the development-related capital requirements for municipal wide services with twenty-year capital costs. 5.3.1 Fire Services Pelham currently operates its fire services from 25,748 sq.ft of facility space, providing for a per capita average level of service of 1.28 sq. ft. of building space per capita or $297 per capita. This level of service provides the Town with a maximum DC-eligible amount for recovery over the forecast period of $2,215,405. The replacement of Station #3 and an extra bay at Station #1 have been identified for inclusion in the DC for fire facilities. The total capital cost of these projects including debenture principal and discounted interest for Station #2 amounts to $2,041,278. Deductions to this amount total $1,018,222 including the December 31, 2012 DC reserve fund balance. Therefore the net growth capital cost to be included in the development charge is $1,022,945. The fire department has a current inventory of 13 vehicles. The total DC eligible amount calculated for fire vehicles over the forecast period is $1,892,542, based on a standard of $254 per capita. The need for an additional Fire Chief vehicle and provision for a new vehicle has been identified over the forecast period. The net capital cost of $165,000 is considered growth related and this amount has been included in the development charge. Fire department staff levels stayed constant in recent years with 86 firefighters. Each firefighter is fully equipped. The Town currently has a calculated average level of service for the historic 10-year period of $49 per capita, providing for a DC-eligible amount over the forecast period of approximately $367,206 for small equipment and gear. Based on growth-related needs the Town has identified a provision for new equipment at a total cost of $50,000 which has been included in the development charge. These costs are shared between residential and non-residential based on a development land area, resulting in 83% being allocated to residential development and 17% being allocated to non-residential development. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
5-11 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service: Fire Facilities Prj.No Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate 2013$ Post Period Benefit Other Deductions Net Capital Cost Benefit to Existing Development Less: Potential DC Recoverable Cost Grants, Subsidies and Other Contributions Attributable to New Residential Share Non-Residential Share 2013-2032 83% 17% 1 Station #2 - Debenture Principal 2013-2022 299,442 0 299,442 0 299,442 248,724 50,718 Total 2 - Debenture Interest (Discounted) 2013-2022 41,836 0 41,836 0 41,836 34,750 7,086 3 Replacement of Station #3 2014 1,300,000 0 1,300,000 866,667 433,333 359,938 73,396 4 Extra Bay at Station #1 2015 400,000 0 400,000 0 400,000 332,250 67,750 Less :2012 December 31 Net DC Reserve Fund balance 0 0 151,666 (151,666) (125,978) (25,688) Total 2,041,278 0 0 2,041,278 1,018,333 0 1,022,945 849,684 173,261 Watson & Associates Economists Ltd. Pelham DC 2013
5-12 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service: Fire Vehicles Less: Potential DC Recoverable Cost Prj.No 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 Grants, Subsidies and Other Contributions Attributable to New Development Residential Share Non-Residential Share 2013-2033 83% 17% 1 Fire Chief Vehicle 2014 40,000 0 40,000 0 40,000 33,225 6,775 2 Provision for new vehicle 2022+ 125,000 0 125,000 0 125,000 103,828 21,172 Total Total 165,000 0 0 165,000 0 0 165,000 137,053 27,947 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
5-13 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service: Fire Small Equipment and Gear Less: Potential DC Recoverable Cost Prj.No 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 Grants, Subsidies and Other Contributions Attributable to New Development Residential Share Non-Residential Share 2013-2033 83% 17% 1 Provision for new equipment 2022+ 50,000 0 50,000 0 50,000 41,531 8,469 Total Total 50,000 0 0 50,000 0 0 50,000 41,531 8,469 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
Revised April 28, 2014 5-14 5.3.2 Roads and Related Pelham owns and maintains 238 km of roads throughout the town. This provides an average level of investment of $10,287 per capita, resulting in a DC eligible recovery amount of approximately $76.8 million over the 20-year forecast period. The Town has identified a number of road projects and sidewalk infrastructure required to service growth over the forecast period, with a total capital cost of $26,171,885. After allocations for existing benefit of $11,015,555 and the reserve fund balance of $12,900, the net growth capital cost included in development charge is $15,156,330. The Public Works Department has a variety of vehicles and major equipment totalling $3.6 million. This inventory provides for a per capita standard of $181. Over the forecast period, the DC-eligible amount for vehicles and equipment is $1,351,176. Additional vehicle and equipment items have been identified for the forecast period amounting to $994,300 of which $1,965 has been allocated to existing benefit. The growth related portion of these items is $992,335 which has been included in the DC calculation. The Town operates their Public Works service out of a number of facilities. The facilities provide 14,968 sq.ft. of building area, providing for a per capita average level of service of 0.92 sq.ft./capita or $124/capita. This level of service provides the Town with a maximum DC-eligible amount for recovery over the 20 year forecast period of $925,667. A provision for new Public Works space has been identified over the forecast period, amounting to $500,000 all of which has been allocated to growth and therefore included in the DC calculation. The residential/non-residential capital cost allocation for roads and related services would be based on an 83%/17% split based on the incremental growth in population to employment, for the 20 year forecast period. Watson & Associates Economists Ltd. 2.docx H:\Pelham\DC 2013\Report\2013 Draft DC Report - addendum
Revised April 28, 2014 5-15 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service: Roads Prj.No 1 2 3 4 5 6 7 8 Increased Service Needs Attributable to Anticipated Development Less: Potential DC Recoverable Cost Residential Share Non-Residential Share Total 2013-2033 83% 17% Fenwick Welland Road Balfour Street Cream Street urbanize road section Cream Street Welland Road Memorial urbanize road section Cream Street Welland Road Memorial sidewalks-west side Memorial Drive Maple Street Cream Street urbanize road section Memorial Drive Maple Street Cream Street sidewalkssouth side Canboro Road Church Street Garner Avenue urbanize road section Canboro Road Church Street Garner Avenue traffic control-maple Street Maple Street Memorial Street Canboro Road urbanize road section Timing (year) Gross Capital Cost Estimate 2013$ Post Period Benefit Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New 2017 1,020,000 0 1,020,000 408,000 612,000 508,343 103,657 2017 1,014,800 0 1,014,800 304,440 710,360 590,043 120,317 2017 247,500 0 247,500 74,250 173,250 143,906 29,344 2018 2,244,800 0 2,244,800 673,440 1,571,360 1,305,211 266,149 2018 547,500 0 547,500 164,250 383,250 318,337 64,913 2015 937,900 0 937,900 375,160 562,740 467,426 95,314 2015 137,500 0 137,500 13,750 123,750 102,790 20,960 2020 1,332,500 0 1,332,500 399,750 932,750 774,766 157,984 Fonthill 9 Haist Road - Debenture Principal 2013-21 1,173,921 0 1,173,921 0 1,173,921 975,089 198,833 Haist Road - Debenture Interest Discounted 2013-21 201,499 0 201,499 0 201,499 167,370 34,129 10 Pelham Street Quaker Road Regional Road 20 urbanize 2017-2018 2,659,900 0 2,659,900 1,994,925 664,975 552,345 112,630 11 12 13 14 15 16 17 Pelham Street Quaker Road Regional Road 20 sidewalkseast side Pelham Street Quaker Road Regional Road 20 bike lanes Pelham Street Quaker Road Regional Road 20 traffic control-port Robinson Pelham Street Quaker RoadRegional Road 20 traffic control-church Hill Pelham Street Quaker Road Regional Road 20 traffic control-merritt Road Merritt Road Pelham Street Rice Road urbanize road section Merritt Road Pelham Street Rice Road Sidewalk both sides 2017-2018 648,800 0 648,800 486,600 162,200 134,727 27,473 2017-2018 1,038,000 0 1,038,000 778,500 259,500 215,547 43,953 2013 137,500 0 137,500 13,750 123,750 102,790 20,960 2013 137,500 0 137,500 13,750 123,750 102,790 20,960 2016 137,500 0 137,500 13,750 123,750 102,790 20,960 2013 1,178,800 0 1,178,800 353,640 825,160 685,399 139,761 2014 575,000 0 575,000 172,500 402,500 334,327 68,173 18 Merritt Road Pelham Street Rice Road bike lane 2014 460,000 0 460,000 345,000 115,000 95,522 19,478 Watson & Associates Economists Ltd. Pelham DC 2013 add
Revised April 28, 2014 5-16 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service: Roads Prj.No 19 Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate 2013$ Post Period Benefit Net Capital Cost Benefit to Existing Development Less: Potential DC Recoverable Cost Grants, Subsidies and Other Contributions Attributable to New Residential Share Non-Residential Share Total 2013-2033 83% 17% Port Robinson Road Pelham Street Rice Road urbanize road section 2013-2014 1,332,500 0 1,332,500 399,750 932,750 774,766 157,984 20 Port Robinson Road Pelham Street Rice Road bike lane 2013-2014 520,000 0 520,000 390,000 130,000 107,981 22,019 21 Port Robinson Road Pelham Street Rice Road Sidewalk 2013-2014 650,000 0 650,000 195,000 455,000 377,935 77,065 22 23 Station Street Regional Road 20 Port Robinson Road urbanize road section Station Street Regional Road 20 Port Robinson Road sidewalk - west side 2016 717,500 0 717,500 215,250 502,250 417,182 85,068 2016 175,000 0 175,000 52,500 122,500 101,752 20,748 24 Effingham Canboro Road Oille hard top surface 2012-2016 4,371,000 0 4,371,000 3,059,700 1,311,300 1,089,199 222,101 25 Regional Road 20 Station Street Rice Road sidewalks - both sides 2012-2016 350,000 0 350,000 105,000 245,000 203,503 41,497 26 East Fonthill - Street A 2015 328,130 0 328,130 0 328,130 272,553 55,577 27 East Fonthill - Street B 2015 276,779 0 276,779 0 276,779 229,900 46,879 28 East Fonthill - Street C 2015 202,806 0 202,806 0 202,806 168,456 34,350 29 Extension of Station Street from Port Robinson Road South 500 metres to end of road allowance 2016 1,167,250 0 1,167,250 0 1,167,250 969,547 197,703 Provision for potential oversizing 250,000 0 250,000 0 250,000 207,656 42,344 Less :2012 December 31 Net DC Reserve Fund balance 12,900-12,900-10,715-2,185 Total 26,171,885 0 26,171,885 11,015,555 0 15,156,330 12,589,232 2,567,098 Watson & Associates Economists Ltd. Pelham DC 2013 add
5-17 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service: Roads and Related Vehicles Prj.No Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate 2013$ Post Period Benefit Other Deductions Net Capital Cost Benefit to Existing Development Less: Potential DC Recoverable Cost Grants, Subsidies and Other Contributions Attributable to New Development Residential Share Non-Residential Share 2013-2033 83% 17% 3 Pick up Truck 2016 39,300 0 39,300 1,965 37,335 31,011 6,324 5 5 Tonne Dump Truck 2017 175,000 0 175,000 0 175,000 145,359 29,641 6 Maintenance Tractor with Plow and Mower 2015 135,000 0 135,000 0 135,000 112,134 22,866 7 Maintenance Tractor with Plow and Mower 2015 135,000 0 135,000 0 135,000 112,134 22,866 8 Sidewalk and Plow Mowers 2014 160,000 0 160,000 0 160,000 132,900 27,100 9 Provision for additional vehicles & equipment 2019+ 350,000 0 350,000 0 350,000 290,719 59,281 Total Total 994,300 0 0 994,300 1,965 0 992,335 824,259 168,076 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
5-18 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service: Depots and Domes Less: Potential DC Recoverable Cost Prj.No 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 Grants, Subsidies and Other Contributions Attributable to New Development Residential Share Non-Residential Share 2013-2033 83% 17% 1 Provision for New Operations Space 2014-2018 500,000 0 500,000 0 500,000 415,313 84,687 Total Total 500,000 0 0 500,000 0 0 500,000 415,313 84,687 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
Revised March 5, 2014 5.4 Service Levels and Urban Build out Capital Costs for Pelham s DC Calculation 5-19 This section evaluates the development-related capital requirements for water and wastewater services over the urban build out planning period. 5.4.1 Wastewater Services The capital program for sanitary sewers includes both the extension of services to new development and the enlargement of existing sewers to increase capacity and accommodate development over the buildout period. Based on the identified needs, the total gross cost of $5,670,846 is grouped by geographic benefiting area (i.e. Fonthill or Fenwick) and has been included in the DC listing for wastewater service. Of this amount a reserve adjustment of $149,419 has been made to reflect the Dec 31, 2012 balance resulting in net growth related costs of $5,521,427 for inclusion in the DC calculation. The allocation between residential and no-residential growth is calculated based on design flows over the build out urban forecast period. This split results in an 88% allocation to residential and 12% allocation to non-residential. 5.4.2 Water Services The Town has provided capital projects for water distribution including watermain looping in both Fenwick and Fonthill and an expansion of the Fonthill water network. The total gross cost of these projects along with outstanding debt and discounted interest is $4,352,417. A reduction of $205,894 to recognize the December 31, 2012 reserve fund balance has also been made. Therefore, the amount attributable to growth over the urban forecast period to be included in the DC calculation is $4,146,523. Similar to wastewater, the growth related costs have been allocated between residential and non-residential development based on design flows over the build out urban forecast period. The allocation between residential and no-residential growth is calculated based on design flows over the build out urban forecast period. This split results in an 88% allocation to residential and 12% allocation to non-residential. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report - addendum.docx
Revised March 5, 2014 5-20 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service: Wastewater - Sewers Prj.No Less: Total Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate 2013$ Post Period Benefit Other Deductions Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Residential Share Non-Residential Share 2013-Urban Build Out 88% 12% 1 2 3 Fenwick Welland Road Upgrade existing sewer from 200 mm dia to 300 mm dia Church Street Upgrade existing sewer from 250 mm dia to 350 mm dia 2019 742,600 0 742,600 0 742,600 653,961 88,639 2019 906,400 0 906,400 0 906,400 798,209 108,191 Foss Road Upgrade existing sewer from 350 dia to 450 mm dia 2019 592,800 0 592,800 0 592,800 522,041 70,759 Provision for potential oversizing 125,000 0 125,000 0 125,000 110,080 14,920 Subtotal 2,366,800 0 0 2,366,800 0 0 2,366,800 2,084,290 282,510 4 5 6 7 Fonthill Port Robinson Road New sanitary sewer to service new development Merritt Road New sanitary sewer to service new development Deer Park, Phase II Upgrade existing from 350 to 450 Pelham Town Square Extension New 300 mm sewer to service new development 2014 850,000 0 850,000 0 850,000 748,541 101,459 2015 850,000 0 850,000 0 850,000 748,541 101,459 2015 706,000 0 706,000 0 706,000 621,729 84,271 2016 632,000 0 632,000 0 632,000 556,562 75,438 8 East Fonthill 1 2015 141,046 0 141,046 0 141,046 124,210 16,836 Provision for potential oversizing 125,000 0 125,000 0 125,000 110,080 14,920 Less :2012 December 31 Net DC Reserve Fund balance 149,419 (149,419) (131,584) (17,835) Subtotal 3,304,046 0 3,304,046 149,419 3,154,627 2,778,079 376,548 Total 5,670,846 0 0 5,670,846 149,419 0 5,521,427 4,862,370 659,057 1 For location see map in Appendix G. Watson & Associates Economists Ltd. Pelham DC 2013 add.xlsx
Revised March 5, 2014 5-21 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Pelham Service: Water Distribution Prj.No Less: Total Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate 2013$ Post Period Benefit Other Deductions Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Residential Share Non-Residential Share 2013-Urban Build Out 88% 12% Fenwick 1 Cream Street New watermain - looping 2016 474,500 0 474,500 0 474,500 417,862 56,638 2 Welland Road New watermain - looping 2016 680,400 0 680,400 0 680,400 599,185 81,215 subtotal 1,154,900 0 1,154,900 0 1,154,900 1,017,047 137,853 Fonthill 3 Merritt Road New Watermain 2015 931,500 0 931,500 0 931,500 820,313 111,187 4 East Fonthill Collector Road New watermain to service new development 1 2015 165,490 0 165,490 0 165,490 145,737 19,753 5 East Fonthill - north section fire supply main New watermain to service new development 2015 747,500 0 747,500 0 747,500 658,276 89,224 6 Port Robinson Road New watermain to service new development 2014 174,000 0 174,000 0 174,000 153,231 20,769 7 Daleview Upgrade watermain from 150 to 200 2016 130,000 0 130,000 0 130,000 114,483 15,517 8 Rice Road - Debenture Principal 2013-22 909,222 0 909,222 0 909,222 800,694 108,528 Rice Road - Debenture Interest Discounted 2013-22 139,806 0 139,806 0 139,806 123,118 16,688 Less :2012 December 31 Net DC Reserve Fund balance 205,894 (205,894) (181,318) (24,576) subtotal 3,197,517 0 3,197,517 0 3,197,517 2,815,850 381,667 Total 4,352,417 0 0 4,352,417 205,894 0 4,146,523 3,651,580 494,944 1 For location see map in Appendix G. Watson & Associates Economists Ltd. Pelham DC 2013 add.xlsx
6. DEVELOPMENT CHARGE CALCULATION Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
6-1 6. DEVELOPMENT CHARGE CALCULATION Tables 6-1 and 6-1a calculate the proposed development charges to be imposed for infrastructure services in Fenwick and Fonthill based upon an urban build-out (water and wastewater) horizon. Table 6-2 calculates the proposed uniform development charge to be imposed on anticipated development in the Town for municipal-wide services over a 20-year planning horizon. Table 6-3 calculates the proposed uniform development charge to be imposed on anticipated development in the Town for municipal-wide services over a 10-year planning horizon. The calculation for residential development is generated on a per capita basis, and is based upon four forms of housing types (Single and Semi-detached, Apartments 2+ bedrooms, Apartments bachelor and 1 bedroom, and all Other Dwellings). 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 (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 Chapter 5 are based on the net anticipated population increase (the forecast new unit population less the anticipated decline in existing units). The cost per capita is then multiplied by the average occupancy of the new units (Appendix A, Schedules 4a, 4b, and 5) to calculate the charge in Tables 6-1a, 6-1b, 6-2 and 6-3. 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 6-4 summarizes the total development charge that is applicable and Table 6-5 summarizes the gross capital expenditures and sources of revenue for works to be undertaken during the 5-year life of the by-law. For Council s consideration, a combined charge was calculated for the Fenwick/Fonthill water and wastewater. These calculations are provided in Table 6-6 and will be considered further by Council. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
Revised March 5, 2014 TABLE 6-1 TOWN OF PELHAM DEVELOPMENT CHARGE CALCULATION FENWICK WATER & WASTEWATER 2013-Urban Build Out 2013 $ DC Eligible Cost 2013 $ DC Eligible Cost SERVICE Residential Non-Residential SDU per ft² $ $ $ $ 1. Wastewater Services 1.1 Sewers 2,084,290 282,510 2,921 1.87 2,084,290 282,510 2,921 1.87 6-2 2. Water Services 2.1 Distribution systems 1,017,047 137,853 1,426 0.91 1,017,047 137,853 1,426 0.91 TOTAL $3,101,337 $420,363 $4,347 2.78 DC ELIGIBLE CAPITAL COST $3,101,337 $420,363 Build out Gross Population / GFA Growth (ft².) 2,176 151,100 Cost Per Capita / Non-Residential GFA (ft².) $1,425.25 $2.78 By Residential Unit Type p.p.u Single and Semi-Detached Dwelling 3.05 $4,347 Apartments - 2 Bedrooms + 1.97 $2,808 Apartments - Bachelor and 1 Bedroom 1.33 $1,896 Other Multiples 2.13 $3,036 Watson & Associates Economists Ltd. Pelham DC 2013 add.xlsx
Revised March 5, 2014 TABLE 6-1a TOWN OF PELHAM DEVELOPMENT CHARGE CALCULATION FONTHILL WATER & WASTEWATER 2013-Urban Build Out 2013 $ DC Eligible Cost 2013 $ DC Eligible Cost SERVICE Residential Non-Residential SDU per ft² $ $ $ $ 1. Wastewater Services 1.1 Sewers 2,778,079 376,548 1,189 0.79 2,778,079 376,548 1,189 0.79 6-3 2. Water Services 2.1 Distribution systems 2,815,850 381,667 1,205 0.81 2,815,850 381,667 1,205 0.81 TOTAL $5,593,930 $758,215 $2,394 1.60 DC ELIGIBLE CAPITAL COST $5,593,930 $758,215 Build out Gross Population / GFA Growth (ft².) 7,127 475,000 Cost Per Capita / Non-Residential GFA (ft².) $784.89 $1.60 By Residential Unit Type p.p.u Single and Semi-Detached Dwelling 3.05 $2,394 Apartments - 2 Bedrooms + 1.97 $1,546 Apartments - Bachelor and 1 Bedroom 1.33 $1,044 Other Multiples 2.13 $1,672 Watson & Associates Economists Ltd. Pelham DC 2013 add.xlsx
Revised April 28, 2014 TABLE 6-2 TOWN OF PELHAM DEVELOPMENT CHARGE CALCULATION Municipal-wide Services 2013-2033 2013 $ DC Eligible Cost 2013 $ DC Eligible Cost SERVICE Residential Non-Residential SDU per ft² $ $ $ $ 3. Roads and Related 3.1 Roads 12,589,232 2,567,098 4,623 2.82 3.2 Depots and Domes 415,313 84,687 153 0.09 3.3 PW Rolling Stock 824,259 168,076 303 0.18 13,828,803 2,819,862 5,079 3.09 6-4 4. Fire Protection Services 4.1 Fire facilities 849,684 173,261 312 0.19 4.2 Fire vehicles 137,053 27,947 50 0.03 1,028,269 209,677 377 0.23 TOTAL $14,857,072 $3,029,539 $5,456 $3.32 DC ELIGIBLE CAPITAL COST $14,857,072 $3,029,539 20 Year Gross Population / GFA Growth (ft².) 8,306 910,300 Cost Per Capita / Non-Residential GFA (ft².) $1,788.82 $3.33 By Residential Unit Type p.p.u Single and Semi-Detached Dwelling 3.05 $5,456 Apartments - 2 Bedrooms + 1.97 $3,524 Apartments - Bachelor and 1 Bedroom 1.33 $2,379 Other Multiples 2.13 $3,810 Watson & Associates Economists Ltd. Pelham DC 2013 add
Revised March 5, 2014 TABLE 6-3 TOWN OF PELHAM DEVELOPMENT CHARGE CALCULATION Municipal-wide Services 2013-2023 2013 $ DC Eligible Cost 2013 $ DC Eligible Cost SERVICE Residential Non-Residential SDU per ft² $ $ $ $ 6-5 5. Outdoor Recreation Services 5.1 Parkland development, amenities & trails 3,223,846 169,676 2,609 0.41 3,223,846 169,676 2,609 0.41 6. Indoor Recreation Services 6.1 Recreation facilities 1,249,903 65,784 1,011 0.16 1,249,903 65,784 1,011 0.16 7. Library Services 7.1 Library facilities 449,135 23,639 363 0.06 7.2 Library materials 453,236 23,855 367 0.06 902,371 47,493 730 0.12 8. Administration 8.1 Studies 750,127 168,656 607 0.40 TOTAL $6,126,246 $451,610 $4,957 $1.09 DC ELIGIBLE CAPITAL COST $6,126,246 $451,610 10 Year Gross Population / GFA Growth (ft².) 3,769 418,700 Cost Per Capita / Non-Residential GFA (ft².) $1,625.28 $1.08 By Residential Unit Type p.p.u Single and Semi-Detached Dwelling 3.05 $4,957 Apartments - 2 Bedrooms + 1.97 $3,202 Apartments - Bachelor and 1 Bedroom 1.33 $2,162 Other Multiples 2.13 $3,462 Watson & Associates Economists Ltd. Pelham DC 2013 add.xlsx
Revised April 28, 2014 TABLE 6-4 TOWN OF PELHAM DEVELOPMENT CHARGE CALCULATION TOTAL ALL SERVICES 6-6 2013 $ DC Eligible Cost 2013 $ DC Eligible Cost Residential Non-Residential SDU per ft² $ $ $ $ Urban-wide Services Build out $8,513,949 $1,154,001 $2,791 1.84 Municipal-wide Services 20 Year 14,857,072 3,029,539 5,456 3.32 Municipal-wide Services 10 Year 6,126,246 451,610 4,957 1.09 TOTAL 29,497,267 4,635,150 13,204 6.25 Watson & Associates Economists Ltd. Pelham DC 2013 add
Revised April 28, 2014 6-7 SERVICE TOTAL GROSS COST Table 6-5 TOWN OF PELHAM GROSS EXPENDITURE AND SOURCES OF REVENUE SUMMARY FOR COSTS TO BE INCURRED OVER THE LIFE OF THE BY-LAW SOURCES OF FINANCING TAX BASE OR OTHER NON-DC SOURCE DC RESERVE FUND OTHER DEDUCTIONS BENEFIT TO EXISTING OTHER FUNDING LEGISLATED REDUCTION POST DC PERIOD BENEFIT RESIDENTIAL NON- RESIDENTIAL 1. Wastewater Services 1.1 Sewers 3,179,046 0 149,419 0 0 0 2,668,000 361,627 2. Water Services 2.1 Distribution systems 3,827,904 0 205,894 0 0 0 3,189,674 432,336 3. Roads and Related 3.1 Roads 19,014,987 0 7,537,490 0 0 0 9,533,500 1,943,997 3.2 Depots and Domes 400,000 0 0 0 0 0 332,250 67,750 3.3 PW Rolling Stock 644,300 0 1,965 0 0 0 533,540 108,795 4. Fire Protection Services 4.1 Fire facilities 1,870,639 0 1,018,333 0 0 0 707,947 144,359 4.2 Fire vehicles 40,000 0 0 0 0 0 33,225 6,775 5. Outdoor Recreation Services 5.1 Parkland development, amenities & trails 3,708,265 0 902,980 142,765 323,072 0 2,222,476 116,972 6. Indoor Recreation Services 6.1 Recreation facilities 16,000,000 0 1,600,000 0 73,094 13,669,063 624,951 32,892 7. Library Services 7.1 Library facilities 866,667 0 216,667 0 40,165 248,346 343,414 18,074 7.2 Library materials 502,200 0 25,110 0 47,709 0 407,912 21,469 8. Administration 8.1 Studies 895,346 0 0 0 88,243 0 658,948 148,156 TOTAL EXPENDITURES & REVENUES $50,949,354 $0 $11,657,857 $142,765 $572,283 $13,917,409 $21,255,837 $3,403,204 Watson & Associates Economists Ltd. Pelham DC 2013 add
7. DEVELOPMENT CHARGE POLICY RECOMMENDATIONS AND DEVELOPMENT CHARGE BY-LAW RULES Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
7. DEVELOPMENT CHARGE POLICY RECOMMENDATIONS AND DEVELOPMENT CHARGE BY-LAW RULES 7-1 7.1 Introduction 7.1.1 Requirements of the DCA 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. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
7-2 7.2 Development Charge By-law Structure It is recommended that: The Town uses a uniform town-wide development charge calculation for all municipal services, except water and sanitary sewer. Water and sanitary sewer services be imposed on the Fenwick and Fonthill specific areas of the Town. Council to consider whether these services should be calculated and imposed on an individual area or whether a combined service charge should be considered. 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: 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. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
2) 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. 7-3 For Administration, the costs have been based on an employment vs. population growth ratio (82%/18% respectively). For Library, Parks and Recreation services, a 5% non-residential attribution has been made to recognize use by the non-residential sector. For Fire and Roads and Related, an 83%/ 17% non-residential attribution has been made based on a population vs. employment growth ratio over the 20 year forecast period. For Water and Sanitary Sewer Services, an 88% residential/12% allocation has been made based on a population vs. Employment growth ratio over the urban buildout period. 7.3.3 Application to Redevelopment of Land (Demolition and Conversion) If a development involves the demolition of and replacement of a building or structure on the same site, or the conversion from one principal use to another, the developer shall be allowed a credit equivalent to: 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 nonresidential 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 5 years prior to the issuance of a building permit. The credit can, in no case, exceed the amount of development charges that would otherwise be payable. 7.3.4 Exemptions (full or partial) a) Statutory exemptions: industrial building additions of up to and including 50% of the existing gross floor area (defined in O.Reg. 82/98, s.1) of the building; for industrial building Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
additions which exceed 50% of the existing gross floor area, only the portion of the addition in excess of 50% is subject to development charges (s.4(3)); 7-4 buildings or structures owned by and used for the purposes of any municipality, local board or Board of Education (s.3); and residential development that results in only the enlargement of an existing dwelling unit, or that results only in the creation of up to two additional dwelling units (based on prescribed limits set out in s.2 of O.Reg. 82/98). b) Non-statutory exemptions This by-law shall not apply to land that is owned by and used for the purposes of: a hospital as defined under the Public Hospitals Act; that portion of a place of worship that is exempt from taxation under the Assessment Act; a garden suite, a farm help house a farm building. Institutions that are exempt from municipal taxation under the following legislation; Social Housing Reform Act, Long Term Care Act, or Mental Health Act, save and except those that are operated for profit. This by-law shall not apply to land developed for purposes where the development is clearly exempt from taxation under Provincial or Federal Legislation. The by-law also provides a 75% development charge exemption in the Downtown areas of Fenwick and Fonthill for specific development defined in s.4(7)(a), and subject to certain conditions set out in paragraph (c) of the same section. See appendix F. 7.3.5 Phasing in No provisions for phasing-in the development charge are provided in the development charge by-law. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
7-5 7.3.6 Timing of Collection The development charges for all services be collected at the time of issuance of the first building permit, subject to early or late payment agreements entered into by the Town and an owner under s.27 of the DCA, 1997. 7.3.7 Indexing Indexing of the development charges shall be implemented on an automatic basis annually commencing January 1, 2014, in accordance with the Statistics Canada Quarterly, Construction Price Statistics for the January 1 st to December 31 st period of the prior year. 7.3.8 The Applicable Areas The charges developed herein provide for varying charges within the Town, as follows: Water and Sewer Services, will be imposed within the Fenwick and Fonthill areas of the Town. Remaining Services the residential and non-residential charges will be imposed on all lands within the Town. 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 Town s development charge collections are currently reserved in eight separate reserve funds: General Government, Fire Protection, Public Works, Parks & Recreation, Library Services, Water, Sewer and Stormwater. It is recommended that the Town continue with this breakdown of the DC reserve funds under the new 2013 by-aw. Appendix F outlines the reserve fund policies that the Town is required to follow as per the Development Charges Act. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
7-6 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 Charges for Inter-Reserve Fund Borrowing The minimum interest rate is the Bank of Canada rate on the day on which the by-law comes into force (as per s.11 of O.Reg. 82/98). 7.5 Other Recommendations It is recommended that Council: Whenever appropriate, request that grants, subsidies and other contributions be clearly designated by the donor as being to the benefit of existing development (or new development as applicable) ; Adopt the assumptions contained herein as an anticipation with respect to capital grants, subsidies and other contributions ; Approve the Development Charges Background Study dated November 4 th, 2013, as amended (if applicable)"; Approve the capital project listing set out in Chapter 5 of the Development Charges Background Study dated November 4, 2013 subject to further annual review during the capital budget process ; Determine that no further public meeting is required ; and Approve the Development Charge By-law as set out in Appendix F. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
8. BY-LAW IMPLEMENTATION Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
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 bylaw. 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 proposed 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 Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
municipal policy with respect to development agreements, DC credits and front-ending requirements. 8-2 2. The second public grouping embraces the public at large and includes taxpayer coalition groups and others interested in public policy (e.g. in encouraging a higher nonautomobile modal split). 3. The third grouping is the industrial/commercial/institutional development sector, consisting of land developers and major owners or organizations with significant construction plans, such as hotels, entertainment complexes, shopping centres, offices, industrial buildings and institutions. Also involved are organizations such as Industry Associations, the Chamber of Commerce, the Board of Trade and the Economic Development Agencies, who are all potentially interested in municipal development charge policy. Their primary concern is frequently with the quantum of the charge, gross floor area exclusions such as basement, mechanical or indoor parking areas, or exemptions and phase-in or capping provisions in order to moderate the impact. 8.2 Anticipated Impact of the Charge on Development The establishment of sound development charge policy often requires the achievement of an acceptable balance between two competing realities. The first is that high non-residential development charges can, to some degree, represent a barrier to increased economic activity and sustained industrial/commercial growth, particularly for capital intensive uses. Also, in many cases, increased residential development charges can ultimately be expected to be recovered via higher housing prices and can impact project feasibility in some cases (e.g. rental apartments). On the other hand, development charges or other municipal capital funding sources need to be obtained in order to help ensure that the necessary infrastructure and amenities are installed. 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 Town 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. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
8-3 The sections which follow, 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; and 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 Town 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 Town must give one copy of the most recent pamphlet without charge, to any person who requests one. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
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 Town 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 Town 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 Town agrees to expand the credit to other services for which a development charge is payable. 8.3.7 Front-Ending Agreements The Town 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 Town to which the DC by-law applies. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
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. 8-5 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 municipality 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; and local services to be installed or paid for by the owner as a condition of approval under Section 53 of the Planning Act. It is also noted that s.s.59(4) of the DCA, 1997 requires that the municipal approval authority for a draft plan of subdivision under s.s.51(31) of the Planning Act, use its power to impose conditions to ensure that the first purchaser of newly subdivided land is informed of all the development charges related to the development, at the time the land is transferred. In this regard, if the municipality in question is a commenting agency, in order to comply with subsection 59(4) of the Development Charges Act, 1997 it would need to provide to the approval authority, information regarding the applicable municipal development charges related to the site. If the municipality is an approval authority for the purposes of section 51 of the Planning Act, it would be responsible to ensure that it collects information from all entities which can impose a development charge. The most effective way to ensure that purchasers are aware of this condition would be to require it as a provision in a registered subdivision agreement, so that any purchaser of the property would be aware of the charges at the time the title was searched prior to closing a transaction conveying the lands. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
APPENDIX A BACKGROUND INFORMATION ON RESIDENTIAL AND NON-RESIDENTIAL GROWTH FORECAST Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
A-1 Year Population (Excluding Census Undercount) SCHEDULE 1 TOWN OF PELHAM RESIDENTIAL GROWTH FORECAST SUMMARY Population (Including Census Undercount)¹ Singles & Semi- Detached Housing Units Multiple Dwellings 2 Apartments3 Other Total Households Person Per Unit (PPU) Mid 2001 15,272 15,880 4,855 235 505 5 5,600 2.84 Mid 2006 16,155 16,800 5,060 340 515 10 5,925 2.84 Mid 2011 16,590 17,250 5,325 470 395 10 6,200 2.78 Mid 2013 16,791 17,460 5,395 487 395 10 6,287 2.78 Mid 2023 20,106 20,910 6,457 682 464 10 7,612 2.75 Mid 2033 24,256 25,226 7,675 980 572 10 9,237 2.73 Buildout (2036) 25,619 26,643 7,837 1,196 844 10 9,887 2.69 Mid 2001 - Mid 2006 883 920 205 105 10 5 325 Mid 2006 - Mid 2011 435 450 265 130-120 0 275 Mid 2011 - Mid 2013 201 210 70 17 0 0 87 Mid 2013 - Mid 2023 3,315 3,450 1,062 195 69 0 1,325 Mid 2013 - Mid 2033 7,465 7,766 2,280 493 177 0 2,950 Mid 2013 - Buildout (2036) 8,828 9,183 2,442 709 449 0 3,600 Source: Watson & Associates Economists Ltd., June 2013. 1. Census Undercount estimated at approximately 4%. Note: Population Including the Undercount has been rounded. 2. Includes townhomes and apartments in duplexes. 3. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. 200 FIGURE A-1 2012-2032 HOUSING FORECAST¹ 180 180 180 180 180 180 160 155 155 155 155 155 155 155 Housing Units 140 120 100 80 60 40 60 77 103 71 89 103 67 39 43 47 40 65 100 100 140 140 140 140 140 20 0 Years Historical Low Density Medium Density High Density Historical Average Source: Historical housing activity (2002-2011) based on Statistics Canada building permits, Catalogue 64-001-XIB 1. Growth Forecast represents start year. Watson & Associates Economists Ltd. 10/17/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
A-2 SCHEDULE 2 TOWN OF PELHAM ESTIMATE OF THE ANTICIPATED AMOUNT, TYPE AND LOCATION OF DEVELOPMENT FOR WHICH DEVELOPMENT CHARGES CAN BE IMPOSED DEVELOPMENT TIMING LOCATION SINGLES & SEMI- DETACHED MULTIPLES 1 APARTMENTS 2 TOTAL RESIDENTIAL UNITS GROSS POPULATION EXISTING UNIT NET IN NEW UNITS POPULATION CHANGE POPULATION INCREASE 2013-2023 902 148 69 1,119 3,185 (276) 2,909 Fonthill 2013-2033 1,644 375 146 2,165 6,061 (511) 5,550 2013 - Buildout 1,773 527 350 2,650 7,127 (546) 6,581 2013-2023 107 47-154 426 (41) 385 Fenwick 2013-2033 513 118 32 663 1,871 (75) 1,796 2013 - Buildout 531 182 99 812 2,176 (80) 2,096 2013-2023 52 - - 52 157 (134) 23 Rural 2013-2033 122 - - 122 373 (247) 126 2013 - Buildout 138 138 422 (264) 158 2013-2023 1,062 195 69 1,325 3,769 (454) 3,315 Town of Pelham 2013-2033 2,280 493 177 2,950 8,306 (840) 7,465 2013 - Buildout 2,442 709 449 3,600 9,726 (898) 8,828 Source: Watson & Associates Economists Ltd., June 2013 Residential distribution based on a combination of historical permit activity, available housing supply and discussions with Pelham staff regarding future development prospects. 1. Includes townhomes and apartments in duplexes. 2. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Watson & Associates Economists Ltd. 7/12/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
A-3 SCHEDULE 3 TOWN OF PELHAM CURRENT YEAR GROWTH FORECAST MID 2011 TO MID 2013 POPULATION Mid 2011 Population 16,590 Occupants of Units (2) 87 New Housing Units, multiplied by persons per unit (3) 2.65 Mid 2011 to Mid 2013 gross population increase 231 231 Decline in Housing Units (4) 6,200 Unit Occupancy, multiplied by ppu decline rate (5) -0.0048 Mid 2011 to Mid 2013 total decline in population -30-30 Population Estimate to Mid 2013 16,791 Net Population Increase, Mid 2011 to Mid 2013 201 (1) 2011 population based on StatsCan Census unadjusted for Census Undercount. (2) Estimated residential units constructed, Mid 2011 to the beginning of the growth period, assuming a six month lag between construction and occupancy. (3) Average number of persons per unit (ppu) is assumed to be: Persons % Distribution Weighted Persons Structural Type Per Unit¹ of Estimated Units² Per Unit Average Singles & Semi Detached 2.76 80% 2.22 Multiples (6) 2.18 20% 0.43 Apartments (7) 1.89 0% 0.00 Total 100% 2.65 ¹ Based on 2006 Census custom database ² Based on Building permit/completion acitivty (4) 2011 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. (6) Includes townhomes and apartments in duplexes. (7) Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Watson & Associates Economists Ltd. 10/17/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
A-4 SCHEDULE 4a TOWN OF PELHAM TEN YEAR GROWTH FORECAST MID 2013 TO MID 2023 POPULATION Mid 2013 Population 16,791 Occupants of Units (2) 1,325 New Housing Units, multiplied by persons per unit (3) 2.84 Mid 2013 to Mid 2023 gross population increase 3,769 3,769 Decline in Housing Units (4) 6,287 Unit Occupancy, multiplied by ppu decline rate (5) -0.0723 Mid 2013 to Mid 2023 total decline in population -454-454 Population Estimate to Mid 2023 20,106 Net Population Increase, Mid 2013 to Mid 2023 3,315 (1) Mid 2013 Population based on: 2011 Population (16,590) + Mid 2011 to Mid 2013 estimated housing units to beginning of forecast period (87 x 2.65 = 231) + (6,200 x -0.0048 = -30) = 16,791 (2) Based upon forecast building permits/completions assuming a lag between construction and occupancy. (3) Average number of persons per unit (ppu) is assumed to be: Persons % Distribution Weighted Persons Structural Type Per Unit¹ of Estimated Units² Per Unit Average Singles & Semi Detached 3.05 80% 2.44 Multiples (6) 2.13 15% 0.31 Apartments (7) 1.71 5% 0.09 one bedroom or less 1.33 two bedrooms or more 1.97 Total 100% 2.84 ¹ 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 2013 households based upon 6,200 (2011 Census) + 87 (Mid 2011 to Mid 2013 unit estimate) = 6,287 (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. (6) Includes townhomes and apartments in duplexes. (7) Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Watson & Associates Economists Ltd. 10/17/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
A-5 SCHEDULE 4b TOWN OF PELHAM TWENTY YEAR GROWTH FORECAST MID 2013 TO MID 2033 POPULATION Mid 2013 Population 16,791 Occupants of Units (2) 2,950 New Housing Units, multiplied by persons per unit (3) 2.82 Mid 2013 to Mid 2033 gross population increase 8,306 8,306 Decline in Housing Units (4) 6,287 Unit Occupancy, multiplied by ppu decline rate (5) -0.1337 Mid 2013 to Mid 2033 total decline in population -840-840 Population Estimate to Mid 2033 24,256 Net Population Increase, Mid 2013 to Mid 2033 7,465 (1) Mid 2013 Population based on: 2011 Population (16,590) + Mid 2011 to Mid 2013 estimated housing units to beginning of forecast period (87 x 2.65 = 231) + (6,200 x -0.0048 = -30) = 16,791 (2) Based upon forecast building permits/completions assuming a lag between construction and occupancy. (3) Average number of persons per unit (ppu) is assumed to be: Persons % Distribution Weighted Persons Structural Type Per Unit¹ of Estimated Units² Per Unit Average Singles & Semi Detached 3.05 77% 2.36 Multiples (6) 2.13 17% 0.36 Apartments (7) 1.71 6% 0.10 one bedroom or less 1.33 two bedrooms or more 1.97 Total 100% 2.82 ¹ 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 2013 households based upon 6,200 (2011 Census) + 87 (Mid 2011 to Mid 2013 unit estimate) = 6,287 (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. (6) Includes townhomes and apartments in duplexes. (7) Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Watson & Associates Economists Ltd. 10/17/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
A-6 SCHEDULE 5 TOWN OF PELHAM BUILDOUT GROWTH FORECAST MID 2013 TO BUILDOUT POPULATION Mid 2013 Population 16,791 Occupants of Units (2) 3,600 New Housing Units, multiplied by persons per unit (3) 2.70 Mid 2013 to Buildout gross population increase 9,726 9,726 Decline in Housing Units (4) 6,287 Unit Occupancy, multiplied by ppu. decline rate (5) -0.1428 Mid 2013 to Buildout total decline in population -898-898 Population Estimate to Buildout 25,619 Net Population Increase, Mid 2013 to Buildout 8,828 (1) Mid 2013 Population based on: 2011 Population (16,590) + Mid 2011 to Mid 2013 estimated housing units to beginning of forecast period (87 x 2.65 = 231) + (6,200 x -0.0048 = -30) = 16,791 (2) Based upon forecast building permits/completions assuming a lag between construction and occupancy. (3) Average number of persons per unit (ppu) is assumed to be: Persons % Distribution Weighted Persons Structural Type Per Unit¹ of Estimated Units² Per Unit Average Singles & Semi Detached 3.05 68% 2.07 Multiples (6) 2.13 20% 0.42 Apartments (7) 1.71 12% 0.21 one bedroom or less 1.33 two bedrooms or more 1.97 Total 100% 2.70 ¹ 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 2013 households based upon 6,200 (2011 Census) + 87 (Mid 2011 to Mid 2013 unit estimate) = 6,287 (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. (6) Includes townhomes and apartments in duplexes. (7) Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Watson & Associates Economists Ltd. 10/17/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
A-7 SCHEDULE 6 SUMMARY OF HOUSING UNITS IN THE DEVELOPMENT PROCESS FONTHILL Stage of Development Singles & Semi- Detached Density Type Multiples 1 Apartments 2 Total Registered Not Built 55 63 0 118 % Breakdown 47% 53% 0% 100% Draft Plans Approved 138 13 0 151 % Breakdown 91% 9% 0% 100% Application Under Review 160 41 0 201 % Breakdown 80% 20% 0% 100% Site Specific Developments 3 0 0 3 % Breakdown 100% 0% 0% 100% Total 356 117 0 473 % Breakdown 75% 25% 0% 100% Source: Data extracted from Town of Pelham Active Plan of Subdivision Report & current to July 1, 2013 1. Includes townhomes and apartments in duplexes. 2. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. FENWICK Stage of Development Singles & Semi- Detached Density Type Multiples 1 Apartments 2 Total Registered Not Built 6 0 0 6 % Breakdown 100% 0% 0% 100% Draft Plans Approved 20 0 0 20 % Breakdown 100% 0% 0% 100% Application Under Review 48 56 0 104 % Breakdown 46% 54% 0% 100% Site Specific Developments 1 0 0 1 % Breakdown 100% 0% 0% 100% Total 75 56 0 131 % Breakdown 57% 43% 0% 100% Source: Data extracted from Town of Pelham Active Plan of Subdivision Report & current to July 1, 2013 1. Includes townhomes and apartments in duplexes. 2. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. TOTAL TOWN OF PELHAM Stage of Development Singles & Semi- Detached Density Type Multiples 1 Apartments 2 Total Registered Not Built 61 63 0 124 % Breakdown 49% 51% 0% 100% Draft Plans Approved 158 13 0 171 % Breakdown 92% 8% 0% 100% Application Under Review 208 97 0 305 % Breakdown 68% 32% 0% 100% Site Specific Developments 4 0 0 4 % Breakdown 100% 0% 0% 100% Total 431 173 0 604 % Breakdown 71% 29% 0% 100% Source: Data extracted from Town of Pelham Active Plan of Subdivision Report & current to July 1, 2013 1. Includes townhomes and apartments in duplexes. 2. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Watson & Associates Economists Ltd. 10/17/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
A-8 SCHEDULE 7 TOWN OF PELHAM HISTORICAL RESIDENTIAL BUILDING PERMITS YEARS 2002-2011 RESIDENTIAL BUILDING PERMITS Year Singles & Semi Detached Multiples 1 Apartments 2 Total 109 16 0 125 2002 59 1 0 60 2003 75 0 2 77 2004 96 7 0 103 2005 68 3 0 71 2006 66 23 0 89 Sub-total 364 34 2 400 Average (2002-2006) 73 7 0 80 % Breakdown 91.0% 8.5% 0.5% 100.0% 2007 67 36 0 103 2008 56 11 0 67 2009 32 7 0 39 2010 39 2 2 43 2011 38 9 0 47 Sub-total 232 65 2 299 Average (2007-2011) 46 13 0 60 % Breakdown 77.6% 21.7% 0.7% 100.0% 2002-2011 Total 596 99 4 699 Average 60 10 0 70 % Breakdown 85.3% 14.2% 0.6% 100.0% Sources: Building Permits - Statistics Canada Publication, 64-001XIB 1. Includes townhomes and apartments in duplexes. 2. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Watson & Associates Economists Ltd. 7/12/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
A-9 SCHEDULE 8a TOWN OF PELHAM PERSONS PER UNIT BY AGE AND TYPE OF DWELLING (2006 CENSUS) Age of SINGLES AND SEMI-DETACHED Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total Adjusted PPU¹ 20 Year Average 1-5 - - 1.818 2.892-2.821 2.76 6-10 - - 1.923 3.282-3.076 3.01 11-15 - - - 3.309-3.364 3.31 16-20 - - - 3.202-3.136 3.10 3.05 20-25 - - - 2.955-2.976 2.96 25-35 - - - 2.785-2.817 2.81 35+ - - 1.864 2.644 4.786 2.656 2.65 Total - - 1.882 2.878 4.370 2.856 Age of MULTIPLES 2 Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total Adjusted PPU¹ 20 Year Average 1-5 - - - - - 2.182 2.18 6-10 - - 1.727 - - 1.900 1.90 11-15 - - - 2.636-2.313 2.31 16-20 - - - - - - - 2.13 20-25 - - - - - - - 25-35 - - - - - - - 35+ - - - - - - - Total - - 2.083 2.342-2.129 Age of ALL DENSITY TYPES Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 1-5 - - 1.700 2.899-2.697 6-10 - - 1.815 3.192-2.812 11-15 - - - 3.197-3.159 16-20 - - 1.667 3.081-2.925 20-25 - 1.417 1.588 2.985-2.676 25-35 - - 1.889 2.768-2.669 35+ - 1.857 1.917 2.640 4.786 2.564 Total 0.667 1.811 1.835 2.856 4.411 2.704 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 2. Includes townhomes and apartments in duplexes. 3. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Note: Does not include Statistics Canada data classified as 'Other' PPU Not calculated for samples less than or equal to 50 dwelling units, and does not include institutional population Watson & Associates Economists Ltd. 7/12/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
A-10 SCHEDULE 8b NIAGARA REGION PERSONS PER UNIT BY AGE AND TYPE OF DWELLING (2006 CENSUS) Age of SINGLES AND SEMI-DETACHED Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total Adjusted PPU¹ 20 Year Average 1-5 - 2.200 2.158 3.125 4.714 3.023 2.99 6-10 - 2.278 2.137 3.201 4.075 3.075 3.04 11-15 - 1.571 1.905 3.155 4.741 3.107 3.08 16-20 - 1.654 1.825 3.173 4.491 3.120 3.10 3.05 20-25 - 1.727 1.935 3.047 4.043 2.973 2.96 25-35 1.667 1.902 2.156 2.800 3.760 2.776 2.77 35+ 1.875 1.577 1.910 2.636 3.862 2.489 2.49 Total 2.045 1.653 1.949 2.808 4.063 2.688 Age of MULTIPLES 2 Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total Adjusted PPU¹ 20 Year Average 1-5 - 1.485 1.850 2.426-2.068 2.05 6-10 - 1.571 1.769 2.583-2.162 2.14 11-15 - 1.571 1.832 2.931-2.483 2.47 16-20 - 1.294 1.604 2.474-2.150 2.14 2.20 20-25 - 1.769 2.280 2.806-2.621 2.61 25-35 - 1.241 2.099 2.509 3.692 2.383 2.38 35+ 1.000 1.280 2.067 2.759 2.935 2.243 2.24 Total 1.235 1.351 1.944 2.660 3.313 2.281 Age of APARTMENTS 3 Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total Adjusted PPU¹ 20 Year Average 1-5 - 1.333 1.854 - - 1.889 1.89 6-10 1.429 1.238 1.794 2.684-1.652 1.65 11-15 1.538 1.257 1.824 2.649-1.643 1.64 16-20 1.176 1.220 1.780 2.545-1.645 1.65 1.71 20-25 1.212 1.240 2.029 2.585-1.655 1.65 25-35 1.516 1.211 1.812 2.981-1.672 1.67 35+ 1.372 1.291 1.802 2.544 3.212 1.689 1.69 Total 1.401 1.260 1.823 2.634 3.182 1.677 Age of ALL DENSITY TYPES Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 1-5 - 1.635 2.028 3.044 4.593 2.806 6-10 1.471 1.495 1.957 3.126 4.197 2.787 11-15 2.588 1.310 1.852 3.097 4.726 2.674 16-20 1.217 1.280 1.762 3.083 4.420 2.716 20-25 1.237 1.286 2.040 2.999 3.961 2.536 25-35 1.544 1.279 1.948 2.778 3.724 2.513 35+ 1.427 1.363 1.895 2.639 3.759 2.349 Total 1.493 1.345 1.907 2.792 3.981 2.479 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 2. Includes townhomes and apartments in duplexes. 3. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Note: Does not include Statistics Canada data classified as 'Other' - Value of 1170 Note: Does not include institutional population Watson & Associates Economists Ltd. 7/12/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
A-11 SCHEDULE 9 TOWN OF PELHAM PERSONS PER UNIT BY STRUCTURAL TYPE AND AGE OF DWELLING (2006 CENSUS) 4.00 Persons Per Dwelling 3.50 3.00 2.50 2.00 1.50 1.00 2.82 2.07 1.89 3.08 2.16 3.36 3.14 2.98 2.82 2.62 2.66 2.48 2.38 2.15 2.24 1.65 1.64 1.65 1.65 1.67 1.69 0.50 0.00 1-5 6-10 11-15 16-20 20-25 25-35 35+ Age of Dwelling Singles and Semi-Detached Multiples Apartments Multiple and Apartment PPUs are based on Niagara Region. Watson & Associates Economists Ltd. 7/12/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
A-12 SCHEDULE 10a TOWN OF PELHAM EMPLOYMENT FORECAST, 2013 TO BUILDOUT Activity Rate Employment Employment Period Population Primary Work at Home Industrial Commercial/ Population Related No Fixed Institutional Place of Total Primary Work 1 Work at Home Industrial Commercial/ Population Related No Fixed Institutional Place of Total Work 1 Total Excluding Work at Home and NFPOW 2001 15,272 0.018 0.059 0.045 0.085 0.028 0.025 0.260 275 895 683 1,298 435 379 3,964 2,690 2006 16,155 0.017 0.052 0.040 0.087 0.044 0.025 0.265 270 835 653 1,403 715 399 4,274 3,040 2 2011 2 16,590 0.016 0.049 0.039 0.088 0.042 0.025 0.259 270 820 639 1,460 697 410 4,295 3,065 Mid 2013 16,791 0.018 0.050 0.038 0.089 0.041 0.024 0.261 302 841 643 1,498 684 411 4,380 3,127 Mid 2023 20,106 0.020 0.050 0.037 0.097 0.038 0.022 0.265 412 1,010 748 1,947 766 451 5,334 3,873 Mid 2033 24,256 0.021 0.051 0.037 0.098 0.035 0.021 0.263 498 1,231 908 2,385 859 499 6,380 4,649 Buildout 25,619 0.020 0.051 0.037 0.098 0.034 0.020 0.260 523 1,295 953 2,504 875 516 6,667 4,855 2001-2006 883-0.001-0.007-0.004 0.002 0.016 0.000 0.005-5 -60-30 105 280 20 310 350 2006 - Mid 2013 636 0.001-0.002-0.002 0.002-0.004 0.000-0.004 32 6-9 95-31 12 106 87 Mid 2013 - Mid 2023 3,315 0.0025 0.0001-0.0011 0.0076-0.0026-0.0020 0.0045 109 169 105 449 82 40 954 745 Mid 2013 - Mid 2033 7,465 0.0025 0.0006-0.0009 0.0091-0.0053-0.0039 0.0022 195 390 265 887 175 88 2,000 1,522 Mid 2013 - Buildout 8,828 0.0024 0.0005-0.0011 0.0085-0.0066-0.0043-0.0006 220 454 310 1,006 191 105 2,287 1,728 Annual Average 2001-2006 177 0.000-0.001-0.001 0.000 0.003 0.000 0.001-1 -12-6 21 56 4 62 70 2006 - Mid 2013 91 0.000 0.000 0.000 0.000-0.001 0.000-0.001 5 1-1 14-4 2 15 12 Mid 2013 - Mid 2023 332 0.00025 0.00001-0.00011 0.00076-0.00026-0.00020 0.00045 11 17 11 45 8 4 95 75 Mid 2013 - Mid 2033 373 0.00013 0.00003-0.00004 0.00045-0.00026-0.00020 0.00011 10 19 13 44 9 4 100 76 Mid 2013 - Buildout 384 0.00010 0.00002-0.00005 0.00037-0.00029-0.00019-0.00003 10 20 13 44 8 5 99 75 Source: Watson & Associates Economists Ltd., June 2013. Incremental Change 1. Statistics Canada defines no fixed place of work (NFPOW) employees as "persons who do not go from home to the same work place location at the beginning of each shift." Such persons include building and landscape contractors, travelling salepersons, independent truck drivers, etc. 2. 2011 Employment breakdown by major sector derived by Watson & Associates Economists Ltd. 2013 Watson & Associates Economists Ltd. 10/17/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
A-13 SCHEDULE 10b TOWN OF PELHAM GROSS FLOOR AREA (GFA) FORECAST (EXCLUDES WORK AT HOME AND NO FIXED PLACE OF WORK), 2013 TO BUILDOUT Employment Gross Floor Area in Square Feet (Estimated)¹ Period Population Primary Industrial Commercial/ Population Related Institutional Total Industrial Commercial/ Population Related Institutional Total 2001 15,272 275 683 1,298 435 2,690 0 0 0 0 2006 16,155 270 653 1,403 715 3,040 0 0 0 0 2011 2 16,590 270 639 1,460 697 3,065 0 0 0 0 Mid 2013 16,791 302 643 1,498 684 3,127 836,100 749,000 478,600 2,063,700 Mid 2023 20,106 412 748 1,947 766 3,873 972,800 973,300 536,300 2,482,400 Mid 2033 24,256 498 908 2,385 859 4,649 1,180,300 1,192,300 601,400 2,974,000 Buildout 25,619 523 953 2,504 875 4,855 1,239,500 1,252,100 612,200 3,103,800 Incremental Change 2001-2006 883-5 -30 105 280 350 0 0 0 0 2006 - Mid 2013 636 32-9 95-31 87 0 0 0 0 Mid 2013 - Mid 2023 3,315 109 105 449 82 745 136,700 224,300 57,700 418,700 Mid 2013 - Mid 2033 7,465 195 265 887 175 1,522 344,200 443,300 122,800 910,300 Mid 2013 - Buildout 8,828 220 310 1,006 191 1,728 403,400 503,100 133,600 1,040,100 Annual Average 2001-2006 177-1 -6 21 56 70 0 0 0 0 2006 - Mid 2013 91 5-1 14-4 12 0 0 0 0 Mid 2013 - Mid 2023 332 11 11 45 8 75 13,670 22,430 5,770 41,870 Mid 2013 - Mid 2033 373 10 13 44 9 76 17,210 22,165 6,140 45,515 Mid 2013 - Buildout 384 10 13 44 8 75 17,539 21,874 5,809 45,222 Source: Watson & Associates Economists Ltd., June 2013. 1. Square Foot Per Employee Assumptions Industrial 1,300 Commercial/ Population Related 500 Institutional 700 Watson & Associates Economists Ltd. 10/17/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
A-14 SCHEDULE 10c TOWN OF PELHAM ESTIMATE OF THE ANTICIPATED AMOUNT, TYPE AND LOCATION OF NON-RESIDENTIAL DEVELOPMENT FOR WHICH DEVELOPMENT CHARGES CAN BE IMPOSED DEVELOPMENT TIMING INDUSTRIAL COMMERCIAL INSTITUTIONAL TOTAL NON- RES EMPLOYMENT LOCATION GFA S.F. GFA S.F. GFA S.F. GFA S.F. INCREASE 1 Fonthill Fenwick Rural Town of Pelham 2013-2023 - 192,000 51,100 243,100 457 2013-2033 - 328,000 93,100 421,100 789 2013 - Buildout - 373,500 101,500 475,000 892 2013-2023 - 25,500 6,600 32,100 61 2013-2033 - 106,000 29,700 135,700 255 2013 - Buildout - 119,000 32,100 151,100 284 2013-2023 136,700 6,800-143,500 227 2013-2033 344,200 9,300-353,500 478 2013 - Buildout 403,400 10,600-414,000 551 2013-2023 136,700 224,300 57,700 418,700 745 2013-2033 344,200 443,300 122,800 910,300 1,522 2013 - Buildout 403,400 503,100 133,600 1,040,100 1,728 1. Employment Increase does not include No Fixed Place of Work employment 2. Square Foot Per Employee Assumptions Industrial 1,300 Commercial 500 Institutional 700
SCHEDULE 11 TOWN OF PELHAM NON-RESIDENTIAL CONSTRUCTION VALUE YEARS 2002-2012 (000's 2012 $) YEAR Industrial Commercial Institutional Total New Improve Additions Total New Improve Additions Total New Improve Additions Total New Improve Additions Total 2002 802 0 0 802 5,024 375 0 5,399 14,456 118 1,117 15,691 20,281 493 1,117 21,891 2003 445 0 0 445 2,594 494 0 3,088 719 127 757 1,603 3,758 621 757 5,136 2004 323 0 366 689 1,769 1,097 1,953 4,819 162 79 305 547 2,255 1,176 2,624 6,055 2005 0 0 0 0 689 913 0 1,603 23 5 0 28 713 918 0 1,631 2006 1,265 0 0 1,265 1,298 850 1,414 3,562 20,616 139 0 20,755 23,179 989 1,414 25,582 2007 0 0 547 547 386 849 624 1,859 22 128 0 150 408 977 1,171 2,557 2008 0 0 0 0 541 973 0 1,513 5 35 0 41 546 1,008 0 1,554 2009 0 0 0 0 1,321 743 515 2,579 728 689 0 1,417 2,050 1,432 515 3,996 2010 0 0 0 0 77 949 0 1,026 2,720 150 391 3,261 2,797 1,099 391 4,288 2011 1,000 0 0 1,000 1,048 679 0 1,727 256 79 0 335 2,304 758 0 3,062 2012 500 700 450 1,650 1,493 1,420 0 2,913 30 140 0 170 2,023 2,260 450 4,733 Subtotal 4,335 700 1,363 6,399 16,241 9,341 4,506 30,088 39,737 1,690 2,571 43,998 60,314 11,731 8,440 80,485 Percent of Total 68% 11% 21% 100% 54% 31% 15% 100% 90% 4% 6% 100% 75% 15% 10% 100% Average 394 64 124 582 1,476 849 410 2,735 3,612 154 234 4,000 5,483 1,066 767 7,317 2002-2012 Year Total 6,399 30,088 43,998 80,485 2002-2012 Average 582 2,735 4,000 7,317 % Breakdown 7.9% 37.4% 54.7% 100.0% SOURCE: STATISTICS CANADA PUBLICATION, 64-001-XIB Note: Inflated to year-end 2012 (January, 2013) dollars using Reed Construction Cost Index Watson & Associates Economists Ltd. 10/17/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013, A-15
A-16 SCHEDULE 12 TOWN OF PELHAM EMPLOYMENT TO POPULATION RATIO BY MAJOR EMPLOYMENT SECTOR, 1996 TO 2006 Year Change 1996 2001 2006 96-01 01-06 Comments Employment by industry 1.0 Primary Industry Employment Categories which relate to 1.1 All primary 545 500 415-45 -85 local land-based resources. Sub-total 545 500 415-45 -85 2.0 Industrial and Other Employment 2.1 Manufacturing 100 185 140 85-45 Categories which relate 2.2 Wholesale trade 205 315 310 110-5 primarily to industrial land 2.3 Construction 180 290 220 110-70 supply and demand. 2.4 Transportation, storage, communication and other utility 55 115 160 60 45 Sub-total 540 905 830 365-75 3.0 Population Related Employment 3.1 Retail trade 470 475 495 5 20 Categories which relate 3.2 Finance, insurance, real estate operator and insurance agent 185 250 290 65 40 primarily to population 3.3 Business service 160 210 310 50 100 growth within the 3.4 Accommodation, food and beverage and other service 605 695 700 90 5 municipality. Sub-total 1,420 1,630 1,795 210 165 4.0 Institutional 4.1 Government Service 90 65 120-25 55 4.2 Education service, Health, Social Services 460 485 715 25 230 Sub-total 550 550 835 0 285 Total Employment 3,055 3,585 3,875 530 290 Population 14,343 15,272 16,155 929 883 Employment to Population Ratio Industrial and Other Employment 0.04 0.06 0.05 0.02-0.01 Population Related Employment 0.10 0.11 0.11 0.01 0.00 Institutional Employment 0.04 0.04 0.05 0.00 0.02 Primary Industry Employment 0.04 0.03 0.03-0.01-0.01 Total 0.21 0.23 0.24 0.02 0.01 Source: Statistics Canada Employment by Place of Work Note: 1996-2006 employment figures are classified by Standard Industrial Classification (SIC) Code Watson & Associates Economists Ltd. 7/12/2013 H:\Pelham\DC 2013\Growth\ Growth Model Pelham DC 2013 July 2013
APPENDIX B LEVEL OF SERVICE Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
APPENDIX B - LEVEL OF SERVICE CEILING TOWN OF PELHAM SUMMARY OF SERVICE STANDARDS AS PER DEVELOPMENT CHARGES ACT, 1997 Maximum Charge (Single Detached) Maximum Ceiling LOS 10 Year Average Service Standard Service Category Sub-Component Quality (per capita) Quantity (per capita) Cost (per capita) Roads $10,286.60 0.0143 km of roadways 719,343 per lane km 76,790,073 10,000 * Depots and Domes $124.00 0.9205 ft² of building area 135 per ft² 925,667 289 Roads and Related Roads and Related Vehicles $181.00 0.0017 No. of vehicles and equipment 106,471 per vehicle 1,351,176 421 Fire Facilities $296.77 1.2758 ft² of building area 233 per ft² 2,215,405 691 Fire Vehicles $253.52 0.0008 No. of vehicles 316,900 per vehicle 1,892,542 590 Fire Fire Small Equipment and Gear $49.19 0.0053 No. of equipment and gear 9,281 per Firefighter 367,206 114 Parkland Development $860.80 0.0035 No. of developed parkland hectares 245,943 per acre 2,853,603 2,194 Parks Parkland Amenities $276.61 0.0023 No. of parkland amenities 120,265 per amenity 916,978 705 Indoor Recreation Facilities $440.98 2.3468 ft² of building area 188 per ft² 1,461,875 1,124 Recreation Library Facilities $158.46 0.6048 ft² of building area 262 per ft² 525,304 404 Library Library Collection Materials $160.12 3.8117 No. of library collection items 42 per collection item 530,807 408 Administration 624 Maximum Charge (excluding Water & Wastewater) 17,563 Fenwick Water & Wastewater 4,347 ** Maximum Charge (including Water & Wastewater) 21,910 * Maximum Charge for Raods is estimated not based on calculation ** Maximum charge equal to calculated rate. Charge for Fonthill will be approximately $1,980 less. B-1 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
B-2 Town of Pelham Service Standard Calculation Sheet Service: Roads Contact : Unit Measure: km of roadways Quantity Measure Description 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Value ($/km) Gravel Roads 1 1 1 1 1 1 1 1 1 1 $280,700 Surface Treated Roads 153 153 153 153 153 153 152 151 149 147 $525,000 Hot Mix Asphalt Roads 68 68 68 75 84 84 85 86 88 90 $1,100,000 1 Total 222 222 222 229 238 238 238 238 238 238 Population 15,592 15,762 16,002 16,155 16,299 16,474 16,563 16,569 16,590 16,685 Per Capita Standard 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 10 Year Average 2003-2012 1 75 km at $1,200,000/km and 15 km at $585,000/km. Quantity Standard 0.0143 Quality Standard $719,343 Service Standard $10,287 DC Amount (before deductions) 20 Year Forecast Population 7,465 $ per Capita $10,287 Eligible Amount $76,790,073 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
B-3 Town of Pelham Service Standard Calculation Sheet Service: Depots and Domes Contact : Unit Measure: ft² of building area Quantity Measure Description 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Bld'g Value ($/ft²) Value/ft² with land, site works, etc. Tice Road Operations Centre 7,016 7,016 7,016 7,016 7,016 7,016 7,016 7,016 7,016 7,016 $197 $ 220 Storage - Quonset Hut and Salt Dome(Tice Rd) 4,972 4,972 4,972 4,972 4,972 4,972 4,972 4,972 4,972 4,972 $35 $ 42 Storage (Park Lane) 2,980 2,980 2,980 2,980 2,980 2,980 2,980 2,980 2,980 2,980 $77 $ 88 Total 14,968 14,968 14,968 14,968 14,968 14,968 14,968 14,968 14,968 14,968 Population 15,592 15,762 16,002 16,155 16,299 16,474 16,563 16,569 16,590 16,685 Per Capita Standard 0.9600 0.9496 0.9354 0.9265 0.9183 0.9086 0.9037 0.9034 0.9022 0.8971 10 Year Average 2003-2012 Quantity Standard 0.9205 Quality Standard $135 Service Standard $124 DC Amount (before deductions) 20 Year Forecast Population 7,465 $ per Capita $124 Eligible Amount $925,667 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
B-4 Town of Pelham Service Standard Calculation Sheet Service: Roads and Related Vehicles Contact : Unit Measure: No. of vehicles and equipment Quantity Measure Description 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Value ($/Vehicle) 1 Ton Truck 2 2 2 2 2 2 2 2 2 4 $70,200 1/2 Ton Truck 5 5 5 6 7 7 7 7 7 7 $39,300 5 Ton Dump & Plow 7 7 7 7 6 8 8 8 8 7 $175,000 Backhoe Loader 3 3 3 3 3 3 3 3 3 3 $186,000 Tractor 3 3 3 3 3 3 3 3 3 3 $50,000 Cube Van 1 1 1 1 1 1 1 1 1 3 $85,800 3/4 Ton 2 3 3 3 3 4 4 4 4 3 $57,200 Tandem Dump Trucks 1 2 $230,000 Front End Loader 1 1 1 1 1 1 1 1 1 1 $200,000 Total 24 25 25 26 26 29 29 29 30 33 Population 15,592 15,762 16,002 16,155 16,299 16,474 16,563 16,569 16,590 16,685 Per Capita Standard 0.00150 0.00160 0.00160 0.00160 0.00160 0.00180 0.00180 0.00180 0.00180 0.00200 10 Year Average 2003-2012 Quantity Standard 0.0017 Quality Standard $106,471 Service Standard $181 DC Amount (before deductions) 20 Year Forecast Population 7,465 $ per Capita $181 Eligible Amount $1,351,176 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
B-5 Town of Pelham Service Standard Calculation Sheet Service: Fire Facilities Contact : Unit Measure: ft² of building area Quantity Measure Description 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Bld'g Value ($/ft²) Value/ft² with land, site works, etc. Station 1 - Fonthill 9,193 9,193 9,193 9,193 9,193 9,193 9,193 9,193 9,193 9,193 $209 $ 234 Station 2 - Fenwick 5,783 5,783 5,783 5,783 5,783 5,783 5,783 5,783 12,000 12,000 $225 $ 252 Station 3 - North Pelham 4,555 4,555 4,555 4,555 4,555 4,555 4,555 4,555 4,555 4,555 $178 $ 200 Total 19,531 19,531 19,531 19,531 19,531 19,531 19,531 19,531 25,748 25,748 Population 15,592 15,762 16,002 16,155 16,299 16,474 16,563 16,569 16,590 16,685 Per Capita Standard 1.2526 1.2391 1.2205 1.2090 1.1983 1.1856 1.1792 1.1788 1.5520 1.5432 10 Year Average 2003-2012 Quantity Standard 1.2758 Quality Standard $233 Service Standard $297 DC Amount (before deductions) 20 Year Forecast Population 7,465 $ per Capita $297 Eligible Amount $2,215,405 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
B-6 Town of Pelham Service Standard Calculation Sheet Service: Fire Vehicles Contact : Unit Measure: No. of vehicles Quantity Measure Description 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Value ($/Vehicle) Pumper 3 3 3 3 3 2 2 2 2 2 $500,000 Heavy Rescue 1 1 1 1 1 1 1 1 1 1 $300,000 Tanker 3 3 3 3 3 3 3 3 3 3 $180,000 Suburban (used as light rescue unit) 2 - - - - $52,500 Large Pumper 1 1 1 1 1 2 2 2 2 2 $500,000 Aerial Unit 1 1 1 1 1 1 1 1 1 1 $1,000,000 Light Rescue 2 2 2 2 2 2 2 2 2 $125,000 Service vehicle 1 1 1 1 1 1 1 1 1 $40,000 Fire Prevention Vehicle 1 1 1 1 $30,000 Total 11 12 12 12 12 12 13 13 13 13 Population 15,592 15,762 16,002 16,155 16,299 16,474 16,563 16,569 16,590 16,685 Per Capita Standard 0.00070 0.00080 0.00070 0.00070 0.00070 0.00070 0.00080 0.00080 0.00080 0.00080 10 Year Average 2003-2012 Quantity Standard 0.0008 Quality Standard $316,900 Service Standard $254 DC Amount (before deductions) 20 Year Forecast Population 7,465 $ per Capita $254 Eligible Amount $1,892,542 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
B-7 Town of Pelham Service Standard Calculation Sheet Service: Fire Small Equipment and Gear Contact : Unit Measure: No. of equipment and gear Quantity Measure Description 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Value ($/item) Firefighters 86 86 86 86 86 86 86 86 86 86 $9,300 Total 86 86 86 86 86 86 86 86 86 86 Population 15,592 15,762 16,002 16,155 16,299 16,474 16,563 16,569 16,590 16,685 Per Capita Standard 0.0055 0.0055 0.0054 0.0053 0.0053 0.0052 0.0052 0.0052 0.0052 0.0052 10 Year Average 2003-2012 Quantity Standard 0.0053 Quality Standard $9,281 Service Standard $49 DC Amount (before deductions) 20 Year Forecast Population 7,465 $ per Capita $49 Eligible Amount $367,206 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
B-8 Town of Pelham Service Standard Calculation Sheet Service: Parkland Development Contact : Unit Measure: No. of developed parkland hectares Quantity Measure Description 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Value ($/ha) Centennial Park 16 16 16 16 16 16 16 16 16 16 $250,000 Cherry Ridge Park 1 1 1 1 1 1 1 1 1 1 $250,000 Harold Black Park 5 5 5 5 5 5 5 5 5 5 $250,000 Hurlestone Park 0 0 0 0 0 0 0 0 0 0 $250,000 Marlene Stewart Streit Park 2 2 2 2 2 2 2 2 2 2 $250,000 North Pelham Park 4 4 4 4 4 4 4 4 4 4 $250,000 Pelham Arena (adjacent parkland & tot lot) 3 3 3 3 3 3 3 3 3 3 $250,000 Pelham Corners Park 1 1 1 1 1 1 1 1 1 1 $250,000 Pelham Peace Park 1 1 1 1 1 1 1 1 1 1 $250,000 Woodstream Park 3 3 3 3 3 3 3 3 3 3 $250,000 Harold Bradshaw Park 20 20 20 20 20 20 20 20 20 20 $250,000 Total 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 Population 15,592 15,762 16,002 16,155 16,299 16,474 16,563 16,569 16,590 16,685 Per Capita Standard 0.0036 0.0036 0.0035 0.0035 0.0034 0.0034 0.0034 0.0034 0.0034 0.0034 10 Year Average 2003-2012 Quantity Standard 0.0035 Quality Standard $245,943 Service Standard $861 DC Amount (before deductions) 10 Year Forecast Population 3,315 $ per Capita $861 Eligible Amount $2,853,603 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
B-9 Town of Pelham Service Standard Calculation Sheet Service: Parkland Amenities Contact : Unit Measure: No. of parkland amenities Quantity Measure Description 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Value ($/item) Soccer Lit 1 2 2 2 2 2 2 2 2 2 $395,000 Soccer Intermediate 2 2 2 2 2 2 2 2 2 2 $190,000 Soccer Mini 1 1 1 1 1 1 1 1 1 1 $82,000 Ball Diamond Lit 3 3 3 3 3 3 3 3 3 3 $345,000 Ball Diamond Unlit 4 4 4 4 4 4 4 4 4 4 $175,000 Tball - - - - - 1 1 1 1 1 $60,000 Portable Lighting Equip 1 1 1 2 2 2 2 2 2 2 $7,000 Portable bleachers 6 6 7 9 10 12 12 12 12 12 $8,400 Playground Equip 7 7 7 8 8 8 8 8 8 8 $125,000 Ice Resurfacer 1 1 1 1 1 1 1 1 1 1 $84,200 Bandshell 1 1 1 1 1 1 1 $84,100 Farmers Market 1 1 1 1 1 1 1 1 1 1 $5,300 Tennis Courts (lit) 4 4 4 4 4 4 4 4 4 4 $80,000 Total 31 32 33 38 39 42 42 42 42 42 Population 15,592 15,762 16,002 16,155 16,299 16,474 16,563 16,569 16,590 16,685 Per Capita Standard 0.0020 0.0020 0.0021 0.0024 0.0024 0.0025 0.0025 0.0025 0.0025 0.0025 10 Year Average 2003-2012 Quantity Standard 0.0023 Quality Standard $120,265 Service Standard $277 DC Amount (before deductions) 10 Year Forecast Population 3,315 $ per Capita $277 Eligible Amount $916,978 Watson & Associates Economists Ltd. Pelham DC 2013
Town of Pelham Service Standard Calculation Sheet Service: Indoor Recreation Facilities Contact : Unit Measure: ft² of building area Quantity Measure Value/ft² with land, site works, etc. 2013 Bld'g Value ($/ft²) Description 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Arena 29,690 29,690 29,690 29,690 29,690 29,690 29,690 29,690 29,690 29,690 $175 $ 197 Senior Citizen's Centre 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 $151 $ 170 Outdoor Swimming Pool 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360 3,360 $139 $ 157 Storage Hut at Arena 912 912 912 912 912 912 912 912 912 912 $77 $ 88 Total 38,162 38,162 38,162 38,162 38,162 38,162 38,162 38,162 38,162 38,162 Population 15,592 15,762 16,002 16,155 16,299 16,474 16,563 16,569 16,590 16,685 Per Capita Standard 2.4475 2.4211 2.3848 2.3622 2.3414 2.3165 2.3041 2.3032 2.3003 2.2872 10 Year Average 2003-2012 Quantity Standard 2.3468 Quality Standard $188 Service Standard $441 DC Amount (before deductions) 10 Year Forecast Population 3,315 $ per Capita $441 Eligible Amount $1,461,875 B-10 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
Town of Pelham Service Standard Calculation Sheet Service: Library Facilities Contact : Unit Measure: ft² of building area Quantity Measure Value/ft² with land, site works, etc. 2013 Bld'g Value ($/ft²) Description 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Main Branch (Fonthill) 8,425 8,425 8,425 8,425 8,425 8,425 8,425 8,425 8,425 8,425 $234 $ 262 Maple Acre (Fenwick) Branch 1,410 1,410 1,410 1,410 1,410 1,410 1,410 1,410 1,410 1,410 $234 $ 262 Total 9,835 9,835 9,835 9,835 9,835 9,835 9,835 9,835 9,835 9,835 Population 15,592 15,762 16,002 16,155 16,299 16,474 16,563 16,569 16,590 16,685 Per Capita Standard 0.6308 0.6240 0.6146 0.6088 0.6034 0.5970 0.5938 0.5936 0.5928 0.5895 10 Year Average 2003-2012 Quantity Standard 0.6048 Quality Standard $262 Service Standard $158 DC Amount (before deductions) 10 Year Forecast Population 3,315 $ per Capita $158 Eligible Amount $525,304 B-11 Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
B-12 Town of Pelham Service Standard Calculation Sheet Service: Library Collection Materials Contact : Unit Measure: No. of library collection items Quantity Measure Description 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Value ($/item) Collections 55,714 57,648 58,861 65,456 64,686 65,000 65,000 65,000 65,000 58,000 $42 Subscriptions - - - - - - - - - 1 $5,000 Total 55,714 57,648 58,861 65,456 64,686 65,000 65,000 65,000 65,000 58,001 Population 15,592 15,762 16,002 16,155 16,299 16,474 16,563 16,569 16,590 16,685 Per Capita Standard 3.57 3.66 3.68 4.05 3.97 3.95 3.92 3.92 3.92 3.48 10 Year Average 2003-2012 Quantity Standard 3.8117 Quality Standard $42 Service Standard $160 DC Amount (before deductions) 10 Year Forecast Population 3,315 $ per Capita $160 Eligible Amount $530,807 Watson & Associates Economists Ltd. Pelham DC 2013
APPENDIX C LONG TERM CAPITAL AND OPERATING COST EXAMINATION Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
C-1 APPENDIX C - COST EXAMINATION LONG TERM CAPITAL AND OPERATING TOWN OF PELHAM ANNUAL CAPITAL AND OPERATING COST IMPACT As a requirement of the Development Charges Act, 1997 under subsection 10(2)(c), an analysis must be undertaken to assess the long term capital and operating cost impacts for the capital infrastructure projects identified within the development charge. As part of this analysis, it was deemed necessary to isolate the incremental operating expenditures directly associated with these capital projects, factor in cost saving attributable to economies of scale or cost sharing where applicable, and prorate the cost on a per unit basis (i.e. sq.ft. of building space, per vehicle, etc.). This was undertaken through a review of the Municipality s approved 2011 Financial Information Return (FIR). 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: LIFE CYCLE COST FACTORS ASSET AVERAGE USEFUL FACTOR LIFE Facilities, Buildings 40 0.01656 Roads 20 0.04116 Rolling Stock & Vehicles 10 0.09133 Fire Vehicles 15 0.05783 Firefighter Equipment and Gear 8 0.11651 Water and Wastewater 80 0.00516 Parks Related 30 0.02465 Table C-1 depicts the annual operating impact resulting from the proposed gross capital projects at the time they are all in place. It is important to note that, while municipal program expenditures will increase with growth in population, the costs associated with the new infrastructure (i.e. facilities) would be delayed until the time these works are in place. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
Revised April 28, 2014 Table C-1 TOWN OF PELHAM OPERATING AND CAPITAL EXPENDITURE IMPACTS FOR FUTURE CAPITAL EXPENDITURES C-2 SERVICE NET GROWTH RELATED EXPENDITURES ANNUAL LIFECYCLE EXPENDITURES ANNUAL OPERATING EXPENDITURES TOTAL ANNUAL EXPENDITURES 1. Wastewater Services 1.1 Sewers 5,521,427 28,500 889,720 918,220 2. Water Services 2.1 Distribution systems 4,146,523 21,400 863,946 885,346 3. Roads and Related 3.1 Roads 15,156,330 623,800 1,902,280 2,526,080 3.2 Depots and Domes 500,000 8,300 62,755 71,055 3.3 PW Rolling Stock 992,335 90,600 124,549 215,149 4. Fire Protection Services 4.1 Fire facilities 1,022,945 16,900 472,185 489,085 4.2 Fire vehicles 165,000 9,500 76,163 85,663 5.3 Small equipment and gear 50,000 5,800 23,080 28,880 5. Outdoor Recreation Services 5.1 Parkland development, amenities & trails 3,393,522 83,700 68,776 152,476 6. Indoor Recreation Services 6.1 Recreation facilities 1,315,687 21,800 129,880 151,680 7. Library Services 7.1 Library facilities 472,774 7,800 98,693 106,493 7.2 Library materials 477,090 43,600 99,594 143,194 8. Administration 8.1 Studies 918,783 0 0 0 Watson & Associates Economists Ltd. Pelham DC 2013 add
APPENDIX D DEVELOPMENT CHARGE RESERVE FUND POLICY Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
D-1 APPENDIX D - FUND POLICY DEVELOPMENT CHARGE RESERVE D.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, 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 Town 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); and 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); 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; Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
D-2 amount and source of money used by the Town to repay municipal obligations to the fund; schedule identifying the value of credits recognized by the Town, 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 D-1 sets out the format for which annual reporting to Council should be provided. D.2 DC Reserve Fund Application Section 35 of the DCA states that: The money in a reserve fund established for a service may be spent only for capital costs determined under paragraphs 2 to 8 of subsection 5(1). This provision clearly establishes that reserve funds collected for a specific service are only to be used for that service. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
D-3 Appendix D-2 SAMPLE DEVELOPMENT CHARGE RESERVE FUNDS STATEMENT TOWN OF PELHAM FOR THE YEAR Town Wide Urban Area * Reserve Fund Public Works Fire Protection Services Parks and Recreation Library Services General Government Wastewater Services Water Services Balance as of January 1 Plus: Development Charge Collections Accrued Interest Repayment of Monies Borrowed from Fund and Associated Interest SUB-TOTAL Less: Amount Transferred to Capital (or Other) Funds {1} Amounts Refunded Amounts Loaned to Other DC Service Category Credits {2} Monies Borrowed from Fund for Other Municipal Purposes SUB-TOTAL December 31 Closing Balance * Note-the above chart is presented based upon a water and wastewater being a combined charge. Should Council wish to provide these charges on an individual area basis reporting for these areas should be separated. {1}See Attachment 1 for details {2}See Attachment 2 for details Watson & Associates Economists Ltd. Pelham DC 2013
D-4 Attachment 1 SAMPLE DEVELOPMENT CHARGE RESERVE FUND STATEMENT TOWN OF PELHAM FOR THE YEAR DISCOUNTED SERVICES RESERVE FUND TRANSFERS Capital Project DC Reserve Fund Draw Operating Fund Draw Other Reserves Fund Draw Debt Total Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
D-5 Attachment 2 DEVELOPMENT CHARGE RESERVE FUND STATEMENT TOWN OF PELHAM FOR THE YEAR LISTING OF CREDITS UNDER DCA, 1997, s.38 BY HOLDER Credit Holder Applicable DC Reserve Fund Credit Balance - Beginning of Year Additional Credits Granted During Year Credits Used by Holder During Year Credit Balance - End of Year Watson & Associates Economists Ltd. Pelham DC 2013.xlsx
APPENDIX E LOCAL SERVICE POLICY Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
E-1 APPENDIX E - LOCAL SERVICE POLICY GENERAL POLICY GUIDELINES ON DEVELOPMENT CHARGE AND LOCAL SERVICE FUNDING FOR ROAD-RELATED, STORM WATER MANAGEMENT, WATER AND SANITARY SEWER WORKS The following guidelines set out in general terms the size and nature of engineered infrastructure that is included in the study as a development charge project versus infrastructure that is considered as a local service, to be emplaced separately by landowners, pursuant to a development agreement. The following policy guidelines are general principles by which staff will be guided in considering development applications. However, each application will be considered on its own merits having regard to, among other factors, the nature, type and location of the development and any existing and proposed development in the surrounding area, these policy guidelines, the location and type of services required and their relationship to the proposed development and to existing and proposed development in the area, and subsection 59(2) of the Development Charges Act, 1997. WATER 1. Watermains i. Watermains internal to the development are considered to be a local service unless the Town requests a watermain be oversized, in which case the oversizing is a development charge project. ii. iii. iv. Watermains external to the development larger than 150 mm are considered to be development charge projects if they supply growth. External watermains of any size required by a development to connect to an existing local trunk main are considered to be the developer s local service responsibility. Watermains of any size required to connect a development charge eligible pumping station or reservoir to the supply network are considered to be development charge projects. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
E-2 2. Booster Stations and Reservoirs (i) (ii) New or expanded water booster pumping stations and reservoir projects servicing two or more developments are considered to be development charge projects. All others are the responsibility of the developer. All other new or expanded water booster pumping stations and reservoir projects that do not qualify as above are the responsibility of the developer. The detailed engineering requirements of the above items are governed by the approved detailed engineering standards for the Town. WASTEWATER 1. Sanitary Sewers i. Sanitary Sewers internal to the development are considered to be a local service, unless the Town requests a sewer be oversized, in which case the oversizing is a development charge project. ii. iii. iv. Sanitary Sewers external to the development greater than 200 mm are considered to be development charge projects. Sanitary Sewers of any size required by a development to connect to an existing local trunk main are considered to be the developer s responsibility. Sanitary Sewers of any size required to connect a pumping station or treatment plant to the collection network are considered to be development charge projects. 2. Pumping Stations i. New or expanded pumping stations internal or external to a development, that are fed by sanitary sewers which qualify as a development charge project are also considered to be development charge projects. ii. New or expanded pumping stations fed by sanitary sewers that do not qualify as a development charge project are the responsibility of the developer. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
The above pipe sizes govern, unless the hydraulic conditions of a particular development require a different pipe size, in which case the minimum pipe size determined by such hydraulic conditions shall be the developer s responsibility. E-3 LAND ACQUISITION FOR WATER AND WASTEWATER WORKS 1. Booster Stations and Reservoirs i. Where required, land acquisition for Booster Stations and Reservoirs which are development charge projects, to the size required by the design of the facility, is to be provided by the developer as part of the development approval process. The market value of the land is considered to be part of the capital cost of the related development charge project. 2. Pumping Stations i. Where required, land acquisition for Pumping Stations which are development charges projects, to the size required by the design of the facility, is to be provided by the developer as part of the development approval process. The market value of the land is considered to be part of the capital cost of the related development charge project. The detailed engineering requirements of the above items are governed by the approved detailed engineering standards for the Town. ROAD-RELATED 1. Arterial and Collector Roads (including Structures) i. New Collector Roads internal to a development are direct developer responsibility. ii. iii. iv. New, widened, extended or upgraded, Arterial and Collector Roads external to a development are considered to be development charge projects. New Collector Roads external to a development, but primarily acting as a connection serving a development, are a direct developer responsibility. All other roads are considered to be the developer s responsibility. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
E-4 2. Traffic Signals and Intersection Improvements i. When on Arterial or Collector Roads external to a development are considered to be development charge projects. ii. iii. When on Collector Roads, Local Roads, acting primarily as private site entrances or entrances to specific developments, are a direct developer responsibility. Intersection improvements and/or Traffic Signals on all other roads are considered to be direct developer responsibility. 3. Streetlights i. Streetlights on Arterial or Collector Roads are considered to be development charge projects. ii. Streetlights on all other roads are considered to be a direct developer responsibility. 4. Sidewalks i. Sidewalks on all roads are considered to be a direct developer responsibility. ii. Sidewalks external to a development which are necessary to connect the development to public spaces are considered to be a direct developer responsibility. LAND ACQUISITION FOR ROADS 1. Road Allowances i. Land acquisition for Arterial or Collector Roads, to the widths required according to the approved engineering standards, is primarily provided by dedications under the Planning Act. In areas where limited or no development is anticipated, and direct dedication is unlikely, the land acquisition is considered to be part of the capital cost of the related development charge project 2. Grade Separations Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
i. Land acquisition for Grade Separations (beyond normal dedication requirements) is considered to be part of the capital cost of the related development charge project. E-5 The detailed engineering requirements of the above items are governed by the approved detailed engineering standards for the Town. STORMWATER MANAGEMENT Stormwater Management Works are to be emplaced by the landowner as a condition of development agreement or by area-specific development charges, as required. Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
APPENDIX F PROPOSED DEVELOPMENT CHARGE BY-LAW Watson & Associates Economists Ltd. H:\Pelham\DC 2013\Report\2013 Draft DC Report.docx
THE CORPORATION OF THE MUNICIPALITY OF PELHAM BY-LAW #3527(2014) A by-law to establish development charges for the Corporation of the Town of Pelham and to repeal by-law #3049(2009). WHEREAS subsection 2(1) of the Development Charges Act, 1997, S.D. c. 27 (hereinafter called "the Act") provides that the council of a municipality may pass By-laws for the imposition of development charges against land to pay for increased capital costs required because of the need for services arising from development in the area to which the by-law applies; AND WHEREAS the Council of The Corporation of the Town of Pelham ("Town of Pelham") has given Notice in accordance with Section 12 of the Development Charges Act, 1997, of its intention to pass a by-law under Section 2 of the said Act; AND WHEREAS the Council of the Town of Pelham has heard all persons who applied to be heard no matter whether in objection to, or in support of, the development charge proposal at a public meeting held on March 19, 2014; AND WHEREAS the Council of the Town of Pelham, had before it a report entitled Town of Pelham Development Charges Background Study dated November 4, 2013 prepared by Watson & Associates Economists Ltd., wherein it is indicated that the development of any land within the Town of Pelham will increase the need for services as defined herein; AND WHEREAS the Council of the Town of Pelham on March 19, 2014 approved the applicable Development Charges Background Study, dated November 4,2013, in which certain recommendations were made relating to the establishment of a development charge policy for the Town of Pelham pursuant to the Development Charges Act, 1997; AND WHEREAS the Council of the Town of Pelham on March 19, 2014 determined that no additional public meeting was required; NOW THEREFORE THE COUNCIL OF THE TOWN OF PELHAM ENACTS AS FOLLOWS: DEFINITIONS 1. In this by-law, (1) "Act" means the Development Charges Act, S.D. 1997, c. 27; (2) "Administration Service" means any and all studies carried out by the municipality that are with respect to eligible services for which a development charge by-law may be imposed under the Development Charges Act, 1997; (3) "Agricultural use" means a bona fide farming operation; (4) "Apartment dwelling" means any building containing more than three Dwelling units; (5) "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; (6) "Board of education" means a board defined in s.s. 1 (1) of the Education Act; R.S.O. 1990, c.e.2, as amended;
(7) "Building Code Act" means the Building Code Act, R.S.O. 1992, c.23, as amended; (8) "Capital cost" means costs incurred or proposed to be incurred by the municipality or a local board thereof directly or by others on behalf of, and as authorized by, the municipality or local board, (a) to acquire land or an interest in land, including a leasehold interest; (b) to improve land; (c) to acquire, lease, construct or improve buildings and structures; (d) to acquire, lease, construct or improve facilities including, (i) rolling stock with an estimated useful life of seven years or more, (ii) furniture and equipment, other than computer equipment, and (iii) materials acquired for circulation, reference or information purposes by a library board as defined in the Public Libraries Act, R.S.O. 1990, c.p.44; as amended; (e) to undertake studies in connection with any of the matters referred to in clauses (a) to (d); (f) to complete the development charge background study under Section 10 of the Act; (g) interest on money borrowed to pay for costs in (a) to (d); required for provision of services designated in this by-law within or outside the municipality; (9) "Commercial use" means a building, structure, lot, use or activity pertaining to the buying or selling of commodities or the supplying of services for remuneration, but does not include activities associated with the manufacturing, warehousing or assembling of goods, or with any construction work; (10) "Council" means the Council of The Corporation of the Town of Pelham; (11) "Development" means any activity or proposed activity in respect of land that requires one or more of the actions referred to in Section 7 of this by-law and including the redevelopment of land or the redevelopment, expansion, extension or alteration of a use, building or structure except interior alterations to an existing building or structure which do not change or intensify the use of land; (12) "Development charge" means a charge imposed pursuant to this By-law; (13) "Duplex dwelling" means a building divided horizontally into two Dwelling units; (14) "Dwelling" means a building containing one or more Dwelling units; (15) "Dwelling unit" means a room or suite of rooms used, or designed or intended for use by, one person or persons living together, in which access to culinary or
sanitary facilities has been provided and may include time share, life lease and long term or assisted care type units; (16) "Farm building" means that part of a bona fide farm operation encompassing barns, silos and other ancillary development to an agricultural use, but excluding a residential use; (17) "Farm help house" means a Dwelling containing one Dwelling unit and forming part of a bona fide farm operation providing accommodation to farm help on the farm operation; (18) "Garden Suite" is a temporary single detached Dwelling providing temporary accommodation, and shall have the same meaning as defined in the Town's Zoning By-law No. 1136, as amended; (19) "Grade" means the average level of finished ground adjoining a building or structure at all exterior walls; (20) "Gross floor area" means the total floor area measured between the outside of exterior walls, or between the outside of exterior walls and the centre line of party walls dividing the building from another building, of all floors including below grade but does not include a room or enclosed area within the building or structure that is used exclusively for the accommodation of heating, cooling, ventilation, electrical, mechanical or telecommunications equipment that service that building; (21) "Institution use" means, a use or intended use by an agency, organized body, society, association or religious group for promoting a public or non-profit purpose, and includes (but is not limited to) uses such as universities, colleges, schools, places of worship, hospitals and Institutional shall have a corresponding meaning; (22) "Local board" means a public utility commission, public library board, local board of health, or any other board, commission, committee or body or local authority established or exercising any power or authority under any general or special act with respect to any of the affairs or purposes of the municipality or any part or parts thereof; (23) "Local services" means those services or facilities 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, required as a condition of approval under s.51 of the Planning Act, or as a condition of approval under s.53 of the Planning Act, (24) "Multiple dwelling" means all Dwellings other than Single detached dwellings, Semi-detached dwellings, and Apartment dwellings; (25) "Municipality" means The Corporation of the Town of Pelham; (26) "Non-residential uses" means a building or structure used for other than a Residential use and Non-residential shall have a corresponding meaning; (27) "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; (28) "Planning Act" means the Planning Act, RS.O. 1990, c.p.13, as amended;
(29) "Regulation" means any regulation made pursuant to the Act; (30) "Residential use" means lands, buildings or structures or portions thereof used, or designed or intended for use as a home or residence of one or more individuals, and shall include a Single detached dwelling, a Semi-detached dwelling, a Multiple dwelling, an Apartment dwelling, and the residential portion of a multiple-use building or structure and residential shall have a corresponding meaning; (31) "Semi-detached dwelling" means a Dwelling divided vertically into two Dwelling units; (32) "Services" means services set out in Schedule "A" to this 8y-law; (33) "Single detached dwelling" means a completely detached Dwelling containing only one Dwelling unit; and (34) "Use" means either residential use or non-residential use. CALCULATION OF DEVELOPMENT CHARGES 2. (1 ) Subject to the provisions of this 8y-law, development charges against land shall be imposed, calculated and collected in accordance with the charges set out in Schedule "8", which relate to the services set out in Schedule "A". (2) The development charge with respect to the uses of any land, building or structure shall be calculated as follows: a) in the case of residential development or redevelopment or the residential portion of a multiple use development or redevelopment, as the sum of the product of the number of dwelling units of each type multiplied by the corresponding total amount for such dwelling unit type, as set out in Schedule "8"; b) in the case of non-residential development or redevelopment, or the nonresidential portion of a multiple use development or redevelopment, as the sum of the product of the gross floor area multiplied by the corresponding total amount for such gross floor area as set out in Schedule "8". (3) Council hereby determines that the development or redevelopment of land, buildings or structures for residential and non-residential uses will require the provision, enlargement or expansion of the services referenced in Schedule "A". PHASE-IN OF DEVELOPMENT CHARGES 3. The development charges imposed pursuant to this by-law are not being phased-in and are payable in full, subject to the exemptions herein, from the effective date of this bylaw. APPLICABLE LANDS 4. (1 ) The Council of the Town of Pelham hereby imposes the Town-wide development charges indicated on Schedule "8" to this by-law within the Town of Pelham to those categories of Residential and Non-Residential uses of land, buildings or structures, as further defined herein, in order to defray the growth related net
capital cost of providing, enlarging, expanding or improving the services indicated on Schedule "A" to this by-law. (2) Subject to Sections 5, 6 and 7, Schedule "B" to this by-law applies to all lands in the municipality, whether or not the land or use is exempt from taxation under Section 3 of the Assessment Act, RS.O. 1990, c.a.31. (3) Subject to Sections 5, 6 and 7, Schedule "B" to this by-law, Water and Sanitary Sewer Development Charges, applies to all lands within the Fenwick Urban Boundary as defined on the map in Schedule "C" to this by-law, whether or not the land or use is exempt from taxation under Section 3 of the Assessment Act, RS.O. 1990, c.a.31. Water and Sewer charges will also apply to any property that is serviced by these facilities and are outside the mapped area. (4) Subject to Sections 5, 6 and 7, Schedule "B" to this by-law, Water and Sanitary Sewer Development Charges, applies to all lands within the Fonthill Urban Boundary as defined on the map in Schedule "0" to this by-law, whether or not the land or use is exempt from taxation under Section 3 of the Assessment Act, RS.O. 1990, c.a.31. Water and Sewer charges will also apply to any property that is serviced by these facilities and are outside the mapped area. (5) Notwithstanding subsections (3) and (4): (a) The development charge for the water service is applicable to development within the designated service areas provided that municipal water service is available or expected to be made available during the term of the by-law; (b) The development charge for the sanitary sewer service is applicable to development within the designated service areas provided that municipal sanitary sewerage service is available or expected to be made available during the term of the by-law; (6) This by-law shall not apply to land that is owned by and used for the purposes of: a) a board of education; b) any municipality or local board thereof; c) a hospital as defined under the Public Hospitals Act; d) that portion of a place of worship that is exempt from taxation under the Assessment Act; e) a garden suite, f) a farm help house g) a farm building. h) Institutions that are exempt from municipal taxation under the following legislation;.. Social Housing Reform Act,.. Long Term Care Act, or Mental Health Act, save and except those that are operated for profit. (i) This by-law shall not apply to land developed for purposes where the development is clearly exempt from taxation under Provincial or Federal Legislation. (7) Notwithstanding subsection (1), a 75% development charge exemption shall be granted for development of the type defined in paragraph (a), and located within the areas defined in paragraph (b), and subject to such development meeting all of the conditions set out in paragraph (c).
(a) (i) addition of residential units to existing residential, commercial or mixed use buildings; and/or (ii) residential conversion of existing commercial and mixed use buildings that creates additional residential units; and/or (iii) new residential or commercial development on vacant lotsl parking lots; and/or (iv) (v) redevelopment of mixed use buildings that creates additional residential units or commercial space; and/or conversion of non-commercial space to commercial space. (b) The area shown as Downtown Fenwick in Schedule "E" or the area shown as Downtown Fonthill in Schedule "F". (c) 1) Based on the decision of the Treasurer, the property taxes for the property on which the development is located, are in good standing at the time of the application; and 2) Based on the decision of the Director of Planning Services, the existing and proposed land uses for the development, are in conformity with applicable Official Plans, zoning by-law and other planning requirements at both the local and Regional level; and 3) Based on the decision of the Chief Building Official, all improvements relating to the development are to be made pursuant to a building permit and constructed in accordance with the Ontario Building Code and all applicable zoning requirements and planning approvals; and 4) Based on the decision of the Chief Building Official, outstanding work orders and/or orders or requests to comply from the Town have been satisfactorily addressed prior to the Town granting the development charge exemption; and, in addition, 5) The Director of Planning Services may require the applicant to submit for approval, professional design/architectural drawings in conformity with any municipally-issued urban design guidelines, as well as traffic impact studies or studies of microclimatic conditions (e.g. sun, shadow, wind) and such requirements must be met prior to the Town granting the development charge exemption. RULES WITH RESPECT TO EXEMPTIONS FOR INTENSIFICATION OF EXISTING HOUSING 5. (1 ) Notwithstanding Section 4 above, no development charge shall be imposed with respect to developments or portions of developments as follows: (a) the enlargement of an existing residential dwelling unit; (b) the creation of one or two additional residential dwelling units in an existing single detached dwelling where the total gross floor area of the additional unit(s) does not exceed the gross floor area of the existing dwelling unit; (c) the creation of one additional dwelling unit in any other existing residential building provided the gross floor area of the additional unit does not exceed the smallest existing dwelling unit already in the building. (d) the creation of a second single family unit on the same property.
(2) Notwithstanding subsection 5(1 )(b), development charges shall be calculated and collected in accordance with Schedule "8" where the total residential gross floor area of the additional one or two dwelling units is greater than the total gross floor area of the existing single detached dwelling unit. (3) Notwithstanding subsection 5(1)(c), development charges shall be calculated and collected in accordance with Schedule "8" where the additional dwelling unit has a residential gross floor area greater than, (a) in the case of semi-detached dwelling or multiple dwelling, the gross floor area of the existing dwelling unit, and (b) in the case of any other residential building, the residential gross floor area of the smallest existing dwelling unit. RULES WITH RESPECT TO AN "INDUSTRIAL" EXPANSION EXEMPTION 6. (1) Notwithstanding Section 4, 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 is the following: (a) if the gross floor area is enlarged by 50 percent or less, the amount of the development charge in respect of the enlargement is zero; or (b) if the gross floor area is enlarged by more than 50 percent, development charges are payable on the amount by which the enlargement exceeds 50 percent of the gross floor area before the enlargement. (2) For the purpose of this section, the terms "gross floor area" and "existing industrial building" shall have the same meaning as those terms have in O.Reg. 82/98 made under the Act. (3) In this section, for greater certainty in applying the exemption herein: (a) the gross floor area of an existing industrial building is enlarged where there is a bona fide physical and functional increase in the size of the existing industrial building. DEVELOPMENT CHARGES IMPOSED 7. (1 ) Subject to subsection (2), development charges shall be calculated and collected in accordance with the provisions of this by-law and be imposed on land to be developed for residential and non-residential uses, where, the development requires, (a) the passing of a zoning by-law or an amendment thereto under Section 34 of the Planning Act; (b) the approval of a minor variance under Section 45 of the Planning Act; (c) a conveyance of land to which a by-law passed under subsection 50(7) of the Planning Act applies; (d) the approval of a plan of subdivision under Section 51 of the Planning Act; (e) a consent under Section 53 of the Planning Act;
(f) the approval of a description under Section 50 of the Condominium Act, R.S.O. 1990, c.c.26; or (g) the issuing of a permit under the Building Code Act, in relation to a building or structure. (2) Subsection (1) shall not apply in respect to: (a) local services installed or paid for by the owner within a plan of subdivision or within the area to which the plan relates, as a condition of approval under Section 51 of the Planning Act; (b) local services installed or paid for by the owner as a condition of approval under Section 53 of the Planning Act. LOCAL SERVICE INSTALLATION 8. Nothing in this by-law prevents Council from requiring, as a condition of an agreement under Section 51 or 53 of the Planning Act, that the owner, at his or her own expense, shall install or pay for such local services, within the Plan of Subdivision or within the area to which the plan relates, as Council may require. MULTIPLE CHARGES 9. (1 ) Where two or more of the actions described in subsection 7(1) are required before land to which a development charge applies can be developed, only one development charge shall be calculated and collected in accordance with the provisions of this by-law. (2) Notwithstanding subsection (1), if two or more of the actions described in subsection 7(1) occur at different times, and if the subsequent action has the effect of increasing the need for municipal services as set out in Schedule "A", an additional development charge on the additional residential units and additional non-residential gross floor area shall be calculated and collected in accordance with the provisions of this by-law. SERVICES IN LIEU 10. (1 ) Council may authorize an owner, through an agreement under Section 38 of the Act, to substitute such part of the development charge applicable to the owner=s development as may be specified in the agreement, by the provision at the sole expense of the owner, of services in lieu. Such agreement shall further specify that where the owner provides services in lieu in accordance with the agreement, Council shall give to the owner a credit against the development charge in accordance with the agreement provisions and the provisions of Section 39 of the Act, equal to the reasonable cost to the owner of providing the services in lieu. In no case shall the agreement provide for a credit that exceeds the total development charge payable by an owner to the municipality in respect of the development to which the agreement relates. (2) In any agreement under subsection (1), Council may also give a further credit to the owner equal to the reasonable cost of providing services in addition to, or of a greater size or capacity, than would be required under this by-law. (3) The credit provided for in subsection (2) shall not be charged to any development charge reserve fund.
RULES WITH RESPECT TO RE-DEVELOPMENT 11. I n the case of the re-development involving the demolition and replacement of all or part of a building or structure: (1) a credit offsetting the development charges payable shall be allowed, provided that the land was improved by occupied structures (or structures capable of occupancy) within the five years prior to the issuance of the demolition permit, and the building permit has been issued for the development or redevelopment within five years from the date the demolition permit has been issued; and (2) the credit shall be calculated as follows; (a) for residential buildings, the credit shall be equivalent to the number of dwelling units demolished multiplied by the applicable residential development charge in place at the time the development charge is payable under this by-law. (b) for non-residential buildings, the credit shall be equivalent to the gross floor area demolished multiplied by the applicable non-residential development charge in place at the time the development charge is payable under this bylaw. 12. Notwithstanding Subsection 11 (1), the credit cannot exceed the amount of the development charge that would otherwise be payable, and no credit is available if the existing land use is exempt under this by-law. 13. If a development includes the conversion of a premise from one use (the "first use") to another use, then the amount of development charges payable shall be reduced by the amount, calculated pursuant to this By-law at the current development charge rates, that would be payable as development charges in respect of the first use, provided that such reduction shall not exceed the development charges otherwise payable. TIMING OF CALCULATION AND PAYMENT 14. (1 ) Development charges shall be calculated and payable in full in money or by provision of services as may be agreed upon, or by credit granted under the Act, on the date that the first building permit is issued in relation to a building or structure on land to which a development charge applies. (2) Where development charges apply to land in relation to which a building permit is required, the building permit shall not be issued until the development charge has been paid in full. RESERVE FUNDS 15. (1 ) Monies received for the payment of development charges shall be used only in accordance with the provisions of Section 35 of the Act. (2) Monies received from payment of development charges under this by-law shall be maintained in separate reserve funds. Council directs the Municipal Treasurer to divide the reserve funds created hereunder into separate accounts in accordance with the designated municipal services set out in Schedule "A" to which the development charge payments shall be credited in accordance with the amounts shown, plus interest earned thereon.
(3) Where any development charge, or part thereof, remains unpaid after the due date, the amount unpaid shall be added to the tax roll and shall be collected in like manner as taxes. (4) Where any unpaid development charges are collected as taxes under subsection (4), the monies so collected shall be credited to the development charge reserve funds referred to in subsection (2). (5) The Municipal Treasurer shall, in each year commencing in 2014 for the 2013 year, furnish to Council a statement in respect of the reserve funds established hereunder for the prior year, containing the information set out in Section 12 of O.Reg. 82/98. BY-LAW AMENDMENT OR APPEAL 16. (1 ) Where this by-law or any development charge prescribed thereunder is amended or repealed either by order of the Ontario Municipal Board or by resolution of Council, the Municipal Treasurer shall calculate forthwith the amount of any overpayment to be refunded as a result of said amendment or repeal. (2) Refunds that are required to be paid under subsection (1) shall be paid with interest to be calculated as follows: (a) Interest shall be calculated from the date on which the overpayment was collected to the date on which the refund is paid; (b) The Bank of Canada interest rate in effect on the date of enactment of this by-law shall be used. BY-LAW INDEXING 17. The development charges set out in Schedule "B" to this by-law shall be adjusted annually as of January 1 st, without amendment to the by-law, in accordance with the most recent twelve month change in the Statistics Canada Quarterly, "Construction Price Statistics" (Non-Residential Buildings) Catalogue No. 62-007. SEVERABILITY 18. In the event any provision, or part thereof, of this by-law is found by a court of competent jurisdiction to be ultra vires, such provision, or part thereof, shall be deemed to be severed, and the remaining portion of such provision and all other provisions of this bylaw shall remain in full force and effect. HEADINGS FOR REFERENCE ONLY 19. The headings inserted in this by-law are for convenience of reference only and shall not affect the construction or interpretation of this by-law. BY-LAW REGISTRATION 20. A certified copy of this by-law may be registered on title to any land to which this by-law applies. BY-LAW ADMINISTRATION 21. This by-law shall be administered by the Municipal Treasurer.
SCHEDULES TO THE BY -LAW 22. The following Schedules to this by-law form an integral part of this by-law: Schedule "A" Schedule lib" Schedule "C" Schedule "D" Schedule "E" Schedule "F" Designated Municipal Services under this By-law Schedule of Development Charges Designated Water and Sanitary Sewer Development Charge Area (Fenwick) Designated Water and Sanitary Sewer Development Charge Area (Fonthill) Area to which the Downtown Fenwick Exemption Provisions Apply - Area to which the Downtown Fonthill Exemption Provisions Apply EXISTING BY-LAW REPEAL 23. By-law #3049(2009) is repealed effective the date this By-law is in force and effect. DATE BY-LAW EFFECTIVE 24. This By-law shall come into force and effect on August 6,2014, the day after the existing By-law #3049(2009) is repealed by Council. SHORT TITLE 25. This by-law may be cited as the "Town of Pelham Development Charge By-law, 2014". Passed by the Council this.5tjj day of c:1.u ~,2014. ()
SCHEDULE "A" TO BY-LAW NO. 3527 (2014) DESIGNATED MUNICIPAL SERVICES UNDER THIS BY-LAW 1. Fire Service -Facilities, vehicles, and equipment 2. Roads and Related Service -Roads and all road related services within the road allowance, vehicles, equipment and facilities. 3. Water Service - Fenwick-Mains, pumping and connectors - Fonthill-Mains, pumping and connectors 4. Sanitary Sewer Service - Fenwick-Mains, pumping and connectors - Fonthill-Mains, pumping and connectors 5. Parks and Recreation Service - Parkland, trails, and related amenities, recreation facilities, and all vehicles and equipment. 6. Libraries Service - Facilities, vehicles, equipment and collection materials 7. Administration Service -Studies
SCHEDULE "B" BY-LAW NO.: 3527(2014) SCHEDULE OF TOWN-WIDE DEVELOPMENT CHARGES Service Town Wide Services: Roads and Related Fire Protection Ser.4ces Outdoor Recreation Ser.4ces Indoor Recreation Ser.4ces Library Ser.4ces Administration Total Town Wide Services -- RESIDENTIAL Single and Semi- Apartments - 2 Detached Dwelling Bedrooms + Apartments - Bachelor and 1 Bedroom 5,079 3,281 2,215 377 244 164 2,609 1,685 1,138 1,011 653 441 730 472 318 607 392 265 10,413 6,727 4,541 NON-RESIDENTIAL! Ali Other (per ft2 of Gross Floor Dwellings Area) 3,547 3.09 263 0.23 1,822 0.41 706 0.16 510 0.12 424 0.40 7,272 4.41 SCHEDULE OF WATER & SANITARY SEWER SERVICES DEVELOPMENT CHARGES FOR FENWICK AND FONTHILL Service RESIDENTIAL NON-RESIDENTIAL Single and Semi- Apartments - 2 Apartments - Ali Other (per ft2 of Gross Floor Water & Sanitary Sewer Services: Wastewater Ser.4ces 1,594 1,030 695 1,113 1.05 Water Ser.4ces 1,197 773 522 836 0.79 Total Water & Sanitary Sewer Services 2,791 1,803 1,217 1,949 1.84
wt S N.T.S. SCHEDULE'l:' TO BY-LAW NO. 3527(2014) DESIGNATED WATER AND SANITARY SEWER DBvm...oPMENT CHARGE AREA (FBNWICK) UNDER TIllS BY-LAW Town of Pelham Lot 18 i Lot'5 LEGEND E3 - Fenwick Village Area Boundary ~IGITAL MAP DATE:_2000 SOAI..E:N.TJI. IJiRAWNBY: J.M. OAOAt..E: MAPA 1!!FIANEr PAACI!I. MAPPING
SCHEDULE '0' TO BY-LAW NO. 3527(2014) DESIGNATED WATER AND SANITARY SEWER DEVELOPMENT CHARGE AREA (FONTHIlL) UNDER THIS BY-LAW Town of Pelham 4 3 2 LEGEND DIGfTALMAP SCALI!: N. T.s. E3 -Fonthill Urban Area Boundary ORAYINBY: J.M. OADFILE: MN'JA TSW4E1' PNICa. MAPPINQ