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AGENDA - Special Council - 200405251 r 1 r r I ► 'r NO, O&V TUNDAY, MAY 25, 2004 7:00 m m" COUNCIL PUBLIC RELEASE 21 /05/04 TOWN OF AURORA SPECIAL COUNCIL PUBLIC MEETING AGENDA NO. U4-17 Tuesday, May 25, 2004 i DECLARATIONS OF PECUNIARY INTEREST H APPROVAL OF AGENDA RECOMMENDED: THAT the content of the Agenda be approved as presented. 111 DELEGATION Mr. Craig Binning of Hemson Consulting Limited, to provide information regarding the Development Charges Background Study. IV CONSIDERATION OF ITEMS REQUIRING SEPARATE DISCUSSION V READING OF BYLAWS RECOMMENDED: THAT the following listed by-law be given 1st, 2nd and 3rd readings, and enacted: 4538-04.0 BEING A BY-LAW to (pg. 9) Confirm Actions by Council Resulting From The Special Council Meeting - Tuesday, May 25, 2004. Vl ADJOURNMENT Special Council Public Meeting Agenda No. 04-17 Page 2 of 2 Tuesday, May 25, 2004 AGENDA ITEMS 1. TR04-012 - Development Charges Public Meeting (pg. 1) RECOMMENDED: THAT staff be directed to respond to the comments provided by the members of the public at the May 25, 2004 Development Charges Public Meeting in a report to Council on June 8, 2004; and THAT the recommendations set forth In the Development Charges Background Study be considered by Council for approval at the June 8, 2004 Council Meeting; and THAT a Development Charges By-law, based on the Development Charges Background Study, be prepared for Council's consideration at the June 8, 2004 Council Meeting. SPECIAL COUNCIL PUBLIC MEETING 04-17 MAY 25 2004 AGENDA iTE� #� TOWN OF AURORA COUNCIL REPORT No. TR04-012 SUBJECT: Development Charge public Meeting FROM: Paul Dillman, Acting Treasurer/Tax Collector DATE: May 25, 2004 RECOMMENDATIONS THAT staffbe directed to respond to the comments provided by the members of the public at the May 25, 2004 Development Charges public Meeting in a report to Council on June 8, 2004; THAT the recommendations set forth in the Development Charges Background Study be considered by Council for approval at the June 8, 2004 Council Meeting, THAT a Development Charges By-law based on the Development Charges Background Study be prepared for Council's consideration at the June 8, 2004 Council Meeting. BACKGROUND The Development Charges Act, 1997 (the "Act") requires that all municipalities undertake to complete a Development Charges ("DC") Background Study in support of the enactment of a new By-law authorizing the imposition of Development Charges within five years of enactment of the current DC By-law. The Town's current DC By-law (#4088-99.F) was enacted in August of 1999. Under the Development Charges Act,1997 By-law#4088-99.F must be repealed no laterthan August 31, 2004 and a new By-law enacted for purposes of authorizing the continued imposition of Development Charges by the Town of Aurora. Council at its meeting on October28, 2003 (Report No. TR03-027) approved the awarding of the contract to complete a Development Charges Background Study and implementation of a new Development Charges By-law to Hemson Consulting Ltd. —1— SPECIAL COUNCIL PUBLIC MEETING 04-17 MAY 25 2004 May 25, 2004 - 2 - Report No. TR04-012 COMMENTS Pursuant to Section 12 of the Development Charges Act (DCA) it is required that at least 20 days notice of the public meeting(s) be given and that the notice be in a newspaperthat is of sufficient general circulation in the area to which the proposed by-law would apply to give the public reasonable notice of the meeting. In addition, the DCA stipulates that any person who attends the meeting may make representation. The requirement for the 20 days notification of the public meeting was satisfied with a notice of meeting appearing in the Aurora Era -Banner on April 27, 2004. Subsequent notices were places in the Aurora Era -Banner on May 4, 2004, May 11, 2004 and May 18, 2004. Section 12 also stipulates that the Background Study and proposed by-law be made available to the public at leasttwo weeks priorto the meeting. The draft Background Study and proposed by-law as prepared by Hemson Consulting Ltd was made available for distribution to the General Public on May 10, 2004. Following the public meeting on May 25, 2004, staff will prepare a report to Council In response to comments received in writing and those expressed at the public meeting. In addition, if required, amendments to the proposed development charges may also be prepared for Council's consideration. An addendum report and revised Development Charge By-law will be prepared for first reading on June 8, 2004. If the calculated rates and the by-law are changed as a result of the public meeting on May 25t', It is Council's obligation to determine if a further public meeting is required and thus delaying the first reading of the proposed By-law. OPTIONS N/A EFFECT ON TOWN FINANCES: Current Year Development charges are collected when building permits are issued. The by-law in effect at the time of permit application will determine the amount of the development charge to be collected. The Town of Aurora will collect the new development charges effective September 1, 2004 upon approval of the implementing by-law. The total proposed charge for a single detached home is $9,520. The current charge for a single detached home is $7,982. -2- SPECIAL COUNCIL PUBLIC MEETING 04-17 MAY 25 2004 May 25, 2004 -3 - Report No. TR04-012 Future Years As above. LINK TO STRATEGIC PLAN • Goal A — Maintaining a well -managed and fiscally responsible municipality. ATTACHMENTS: • APPENDIX "A" — Development Charges Background Study— Executive Summary CONCLUSIONS: A new Town of Aurora development charge by-law will be required by August 31, 2004 in order to allow the Town of Aurora to continue to collect development charges. PRE -SUBMISSION REVIEW; Management Team — Wednesday, May 19, 2004. Prepared by: Paul Diliman Ext. 4112 Paul Diliman Acting Treasurer/Tax Collector —3— SPECIAL COUNCIL PUBLIC MEETING 04-17 MAY 25 2004 APPENDIX "A" EXECUTIVE SUMMARY The following summarizes the findings of the study. (i) STUDY CONSISTENT WITH NEW LEGISLATION • This study calculates development charges for the Town of Aurora in compliance with the provisions of the Development Charges Act, 1997 and its related regulation (Ontario Regulation 82/98). (H) ALL SERVICES WITH GROWTH -RELATED COSTS INCLUDED IN THE ANALYSIS • The following Town services have been included in the development charge analysis: Library Fire and Rescue Services Indoor Recreation Park Development and Facilities Public Works Facilities, Fleet and Parking General Government (growth -related studies) Town -Wide Engineering (including roads and associated sidewalks, streetlights, intersections; water services; and sanitary sewerage) (ill) A TOWN -WIDE APPROACH IS USED TO CALCULATE DEVELOPMENT CHARGES • A Town -Wide average cost approach is used to calculate development charges for the services listed above. This approach results in uniform charges throughout the Town. • Sewage and Water charges are applicable to all development within the Town's designated services areas. The Town of Aurora Development Charges Background Study i HEMSON Consulting Ltd. —4— SPECIAL COUNCIL PUBLIC MEETING 04-17 MAY 25 2004 (iv) CALCULATED RESIDENTIAL TOWN -WIDE CHARGES ARE AN INCREASE OVER PRESENT CHARGES Proposed Residential Charges For Town -Wide Services Adjusted Charge B UnitT (1) Charge Singles & Rows & Apartments Apartments Per Capita Semis Ctther Multi les with >=2 bdrm with < 2 bdrm Library Services $190 $646 $513 $380 $285 Fire Services $110 $374 $297 $220 $165 Indoor Recreation $1,140 $3,876 $3,078 $2,280 $1,710 Park Development & Facilities $290 $986 $783 $580 $435 Public Works - Buildings, Fleet & Parking $86 $292 $232 $172 $129 General Govemment $84 $286 $227 $168 5126 SUB -TOTAL GENERAL SERVICES $1,900 $6,4601 $5,130 $3,800 $2 850 Roads and Related $455 $1,547 $1,229 $910 $683 Sanitary Sewers $215 $731 $581 $430 $323 Watermains $230 $782 $621 $460 $345 SUB -TOTAL HARD SERVICES $900 $3,060 $2,431 $1,800 $1,351 TOTAL RESIDENTIAL CHARGE $2,800.00 $9,520 $7.561 $5,61H1 $4,201 (1) Based an Persons Per Unit Of. 34 2.7 2.0 1.5 Proposed Non -Residential Charges For Town -Wide Services Adjusted Charge After Cashflow % of Service (per sq. fQ Total Library Services - Fire & Rescue Services $0.22 10.3% Indoor Recreation - Park Development & Related - Public Works - Buildings, Fleet & Parking $0.19 8.9% General Government $0.13 6.1% SUB -TOTAL GENERAL SERVICES 0.54 25.2% Roads and Related $0.83 38.8% Sanitary Sewers $0.35 16.4% Watermains $0.42 19.6% SUB -TOTAL HARD SERVICES $1.60 74.8% TOTAL NON-RESIDENTIAL CHARGE ($/s .ft.) 1 $2A4 100% The Town of Aurora Development Charges Background Study HEMSON Sansulting Ltd. SPECIAL COUNCIL PUBLIC MEETING 04-17 MAY 25 2004 The proposed Town -Wide residential charges represent an increase of approximately 19% over the Town's current (2004) charges reflecting increased service levels, a more higher refined engineered services capital program, changes in anticipated growth, financing coss and Increases in construction costs. The proposed residential charges are recommended to vary by unit type, reflecting the different occupancy levels expected in various unit types and the associated differences in demand that would be placed on Town services. • The calculated non-residential charges are recommended to be applied on a uniform basis. At $2.14 per square foot ($23.03/sq.m.) of gross floor area (OrFA.), the charge would be approximately 20% higher than the Town's present non-residential charge of $1.78 per square foot ($19.15/sq.m.). (0 A PORTION OF GROWTH -RELATED COSTS REQUIRE FUNDING FROM NON. DEVELOPMENT CHARGE SOURCES The Development Charges Act, 1997 requires that the growth -related net capital costs for "soft" services be reduced by 10 per cent in calculating the applicable development charge for these services. The 10 per cent share of growth -related net capital costs not included in the development charge calculation must be funded from non -development charge sources. In total, about $4.33 million is identified to provide for the required 10 per cent reduction. • Non -development charge funding for replacement portions of the capital forecast (e.g. a share of the new Seniors Centre) and for portions of growth -related projects that benefit existing development will total an additional $3.47 million. These portions of capital costs would have to be funded from the sale of existing assets, fund raising, property taxes, utility rates, user fees and other non -development charge revenue sources. • A share of the capital forecast is for portions of projects that relate to growth in the post-2013 period (for which future development charges could be collected) and to general service level Increases. In total, about $7.08 million falls within these definitions, a portion of which may represent a general service level increases which would require tax and utility rate funding. It is likely that a large share of these costs could be funded The Town of Aurora Development Charges Background Study iii HEMSON Consulting Ltd. SPECIAL COUNCIL PUBLIC MEETING 04-17 MAY 25 2004 from future development charges, but financing of this amount would need to be provided until post-2013 development charges could be collected. The proposed new multi -use recreation and community centre is a good example as $4.2 million of the cost of this facility is identified as benefit to post-2013 growth thereby requiring interim funding (financing) with eventually recovery from new development. It is estimated also that net annual property tax support operating costs will increase by about $5.1 million by the year 2013 as the facilities and infrastructure embodied in the capital forecast are operated and maintained. These costs should be funded from the increase in property assessment generated by new development. (vif) NOSIGNIFICANT CHANGESARERECOMMENDEDREGARDING COLLECTION ORBY. LAW ADMINISTRATION • It is recommended that presempractices regarding cotlectionof development charges and by4aw administration continue to the extent possible. • As required under the DCA, the Town should codify any rules regarding application of the by- laws and exemptions within the development charges by-laws proposed for adoption. • It is recommended that the Town develop reporting policies consistent with the requirements of the DCA. • It is recommended that the by-laws permit the payment of a development charge in cash or through services -in -lieu agreements. The municipality is not obligated to enter into services -in - lieu agreements. • It is recommended that limited exemptions, other than those required in the Development Charges Act, 1997, be formally adopted in the by-laws; • It is recommended that Council adopt the growth -related capital forecast included in this background study, subject to annual review through the Town's normal capital budget process. (viii) LOCAL SERVICE DEFINITIONS • The background study provides definition of "local service", under the Development Charges Act (DCA), for a number of services provided by the Town of Aurora. Town of Aurora Development Charges Background Study HEMSON Consulting Ltd. iv SPECIAL COUNCIL PUBLIC MEETING 04-17 MAY 25 2004 • The purposes in establishing these definitions is to determine the eligible capital costs for inclusion in the development charge calculation for the Town of Aurora. The functions or services deemed to be local in nature are not to be included in the determination of the development charge rates. • The provision of local services are considered to be a direct developer responsibility under s.59 of the DCA and will (or may) be recovered under other agreement(s) with the land owner or developer. The Town or Aurora Development Charges Background Study u HEMSON Consulting Ltd. SPECIAL COUNCIL PUBLIC MEETING 04-17 MAY 25 2004 THE CORPORATION OF THE TOWN OF AURORA By-law Number 4538-04.0 BEING A BY-LAW to Confirm Actions by Council Resulting From The Special Council Meeting of May 25, 2004. THE COUNCIL OF THE CORPORATION OF THE TOWN OF AURORA HEREBY ENACTS AS FOLLOWS: THAT the action of the Council at its special meeting held on May 25, 2004 in respect to each motion, resolution and other action passed and taken by the Council at the said meeting is, except where prior approval of the Ontario Municipal Board is required, hereby adopted ratified and confirmed. 2. THAT the Mayor and the proper officers of the Town are hereby authorized and directed to do all things necessary to give effect to the said action or to obtain approvals where required and to execute all documents as may be necessary In that behalf and the Clerk Is hereby authorized and directed to affix the corporate seal to all such documents. READ A FIRST AND SECOND TIME THIS 25' DAY OF MAY, 2004. READ A THIRD TIME AND FINALLY PASSED THIS 25TH DAY OF MAY, 2004. T. JONES, MAYOR & PANIZZA, TOWN CLERK