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AGENDA - Special Council - 20240206Town of Aurora Special Meeting of Council Agenda Date:Tuesday, February 6, 2024 Time:6 p.m. Location:Council Chambers, Aurora Town Hall Meetings are available to the public in person and via live stream on the Town’s YouTube channel. To participate, please visit aurora.ca/participation. Pages 1.Call to Order 2.Land Acknowledgement 3.Approval of the Agenda 4.Declarations of Pecuniary Interest and General Nature Thereof 5.Delegations 6.Consideration of Items Requiring Discussion 6.1 FIN24-006 - 2024 Development Charges and By-law Public Meeting 1 (Presentation to be provided by Byron Tan, Manager, Watson & Associates Economists Ltd.) That Report No. FIN24-006 be received; and1. That the Development Charges Background Study and Proposed Development Charges By-law be received as presented; and 2. That any new comments, questions, and suggestions arising from the statutory Public Meeting be referred to staff for consideration; and 3. That Council hereby determines that no further public meetings are required under section 12 of the Development Charges Act, 1997. 4. 7.Confirming By-law 7.1 By-law Number XXXX-24 - Being a By-law to confirm actions by Council resulting from a Special Meeting of Council on February 6, 2024 232 8.Adjournment 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Council Report No. FIN 2 4 -0 06 Subject: 2024 Development Charges and By-law Public Meeting Prepared by: Jason Gaertner, Manager Financial Management Department: Finance Date: February 6, 2024 _ Recommendation 1. That Report No. FIN24-006 be received; and 2. That the Development Charges Background Study and proposed Development Charges By-law, be received as presented; and 3. That any new comments, questions, and suggestions arising from the statutory Public Meeting be referred to staff for consideration; and 4. That Council hereby determines that no further public meetings are required under section 12 of the Development Charges Act, 1997. Executive Summary The intent of this report is to present Council and the public with the Development Charges Background Study and proposed Development Charges By-law as required by the Development Charges Act, 1997, S.O. 1997, c. 27 (the “DCA”), as a key final step in updating the Town’s current Development Charges By-law Numbers 6166-19 and 6357- 21, which expire on March 26, 2024.  A detailed consultation has already taken place with the development community  The proposed by-law differs from the Town’s current by-law  The proposed by-law includes a mandatory provision for the phase-in of the new proposed development charges over a five-year period Page 1 of 232 February 6, 2024 2 of 10 Report No. FIN24-006  The Development Charges Act provides a mechanism for members of the public to appeal the revised Development Charges By-law The proposed by-law once approved may be in force for up to a maximum of ten years from the date the by-law is enacted by Council. Therefore, if Council enacts the by-law on March 26, 2024, the by-law may remain active until March 26, 2034, unless Council enacts a replacement by-law before then. Background Since early 2020, the Development Charges Act, S.O. 1997, c. 27 (the “DCA”) has been subject to several legislative changes. The present DCA requires that any development charge by-law commencing prior to January 1, 2020 be reviewed prior to its five-year anniversary. Any development charge by-law enacted on January 1, 2020 or later must be reviewed prior to its ten-year anniversary. The Town of Aurora’s current by-law became effective on March 26, 2019, consequently as per the DCA it will expire on March 26, 2024. In an effort to ensure that the Town continues to have an active development charges (DC) by-law in place, it must undertake the following necessary steps under the DCA in order to renew its DC by-law: 1. The completion of an updated development charges background study and proposed DC by-law which can be found under attachment #1 2. Hold a public meeting that seeks feedback from public stakeholders on the Town’s DC Study and proposed by-law 3. Provide at least 20 days’ notice of its scheduled public meeting(s) which the Town has done 4. Ensure that its draft DC Study and by-law were posted on its web site for 60 days prior to the passing of the Town’s new by-law. Any person who attends the Town’s DC Study and proposed by-law public meeting(s) may make representations relating to the proposed by-law. If the proposed DC by-law is changed following the public meeting, Council shall determine whether a further meeting is necessary. Such a determination is final and not subject to review by a court or the Ontario Land Tribunal. A Special Meeting of Council is scheduled for today for the purpose of holding the required statutory Public Meeting. The Meeting was properly advertised to the public. Page 2 of 232 February 6, 2024 3 of 10 Report No. FIN24-006 The public notice outlined how to obtain copies of the Background Study and draft by- law. These documents were available from the Town’s website in pdf format, meeting the 20 days’ notice requirement. In this meeting, the Town’s consultants, Watson & Associates Economists will firstly present a short educational session to advise members of the public and Council of the purpose, mechanism and process for development charges and their calculations. Watson will then speak to the process, content, and highlights of the updated Background Study. Following the presentation, any questions will be taken; the Chair of the Meeting will then invite members of the public to speak, starting with registered delegates followed by unregistered delegates. Staff encouraged all developers to communicate with staff in advance of the meeting on any issues of concern or questions with respect to the Background Study or draft by- law documents. Staff are hopeful that any concerns that have not already been addressed, if any, can be reviewed and responses provided at this meeting. Any new comments, questions and/or suggestions arising from the statutory public meeting will be referred to staff for consideration. Analysis A Development Charges Background Study (“DC Study”) has been prepared in accordance with the DCA. The proposed draft by-law included as part of the combined document was prepared by staff and reviewed by Legal Services and the consultant. The Executive Summary section of the Background Study provides an overview of the processes, issues and results of the Background Study. Development charges fund the expansion of services and increases of capacity of municipal infrastructure to meet the needs of the growing community. Development charges do not recover 100 per cent of the costs of servicing growth, leaving some elements and portions for the general tax levy or other sources to fund. The development charges determined and presented for approval have been calculated in accordance with the DCA, and optimized to the extent permitted by that legislation. A detailed consultation has already taken place with development community Overall, the development community was engaged on two separate occasions seeking its input; once on September 14, 2023 early in the DC Background Study’s development and a second time on January 12, 2024 upon its substantial completion. In both Page 3 of 232 February 6, 2024 4 of 10 Report No. FIN24-006 instances, a general invite was sent out to the Town’s development community through BILD to its members. In total seven different developers had representation at these meetings. Multiple items were discussed at these meetings, such as the relatively minor 1.3 per cent increase to the DC rate for a single residential unit and the 8.7 per cent increase to the non-residential DC rate proposed under the new versus current DC by-law. Further, it was noted that the observed decreases in higher density residential unit type DC rates under the current versus proposed by-law was mostly the result of the new by-law rates having been constructed based upon a projected residential unit growth consisting of a much higher proportion of high-density units than previous DC studies. The meeting’s presentation was provided to all attendees at their request shortly afterwards. The presentation was also posted on the Town’s website. In addition, all attendees as well as the broader development community were notified either directly by the Town or through BILD to its members as soon as the Town had posted its draft DC Study and proposed by-law on its website. The proposed by-law differs from the Town’s current by-law Staff are required to apply the Town’s development charges by-law on a daily basis. Staff must also administer and collect development charges for York Region and the school boards. Each of these entities have their own unique DC by-law which differ from one another. With this in mind, staff continue seek harmonization of its new draft by-law where it is reasonable to do so with those of the other entities’ by-laws. The greater the harmonization of these by-laws, the lower the risk of error in DC fee collection will be. The most significant changes to the Town’s DC by-law relate to the numerous amendments to the DCA that have taken place over the past few years. The following points highlight the most significant changes in comparison to the Town’s existing by- law. 1. The draft by-law includes additional DC exemptions relating to affordable rental and owned units, as well as attainable units. 2. Further DC exemptions have been included relating to inclusionary zoning units, non-profit housing, and the addition of units to existing residential developments. 3. The inclusion of new DC discounts for rental housing that are based upon the number of proposed bedrooms. 4. The removal of Municipal Parking as an eligible DC service. Page 4 of 232 February 6, 2024 5 of 10 Report No. FIN24-006 5. The exclusion of previously eligible capital growth costs such as studies from the DC rate. 6. The defining of the maximum interest that can be charged for DC instalment repayment and DC Rate freeze agreements. 7. The inclusion of a new requirement to allocate 60 percent of the DC monies held within Water, Wastewater and Services Related to Highway reserves. 8. The extension of the DC by-law expiry date from five to ten years. The proposed by-law includes a mandatory provision for the phase-in of the new proposed development charges over a five-year period Included as part of the many Bill 23 legislative changes was the introduction of a new requirement for municipalities to phase in any new development charge rates arising from a DC by-law over the first five years of its adoption. The DCA requires that any new calculated DC rate be phased at a maximum of 80 per cent, 85 per cent, 90 per cent, 95 per cent, 100 per cent over a five-year period. For example, if a newly adopted DC by-law results in a new calculated DC rate for a single residential unit of $30,000, the maximum that this rate can be in the by-law’s first year of adoption is $24,000 (80 per cent of $30,000). The maximum allowed rate in the second year of the by-law’s adoption would be $25,500 (85 per cent of $30,000). This rate would continue to be phased in by 5 per cent increments until reaching the full $30,000 charge by the beginning of the fifth year of the by-law’s adoption. The Town’s annual DC rates will continue to be subject to indexation over the course of each year. This requirement is applicable to any DC by-law passed on or after January 1, 2022. The Development Charges Act provides a mechanism for members of the public to appeal the revised development charges by-law The DCA provides a mechanism for members of the public to appeal the revised development charges by-law to the Ontario Land Tribunal (the “Tribunal”) within 40 days following adoption by the Council. The Tribunal then hears and makes a final decision on the matter. However, until the decision of the Tribunal is issued, the adopted by-law remains in effect, and development charges as set out therein remain due and payable. Advisory Committee Review None Page 5 of 232 February 6, 2024 6 of 10 Report No. FIN24-006 Legal Considerations In accordance with the DCA, the Town must have an active DC by-law in place that is compliant with the DCA to enable the Town’s legal capability to collect development charges. Financial Implications All development charge funds collected are held in dedicated reserve funds until required for infrastructure investment. Development charges are the Province of Ontario’s funding tool for municipalities to collect revenues for the funding of the necessary expansion of town infrastructure and amenities to maintain existing town service levels as it strives to meet the services demands of the growing community. All funds collected must remain segregated and used for only the purposes of projects eligible under the DCA. The Town plans to spend $255.6 million over the next five years in response to growth, of which $155.7 million (61 per cent) is recoverable from new development charges over this period. The remainder of this planned spend must come from other funding sources, such as the tax levy, water rates, grants, subsidies and other contributions. Further growth capital requirements that are no longer DC eligible as per recent legislation changes are excluded from this figure. A more comprehensive assessment of the Town’s financial impacts arising from these legislative changes will be presented to Council in a separate report. Table 1 outlines the sources and purposes of the total development charge revenue expected to be available over the next five-year period including the $155.7 million in new development charge revenue as well as any previously collected, but unused development charge revenue. Page 6 of 232 February 6, 2024 7 of 10 Report No. FIN24-006 Table 1 Summary Expected DC Revenue By Service Type Potential D.C. Recoverable Cost Total Residential Share Non- Residential Share Fire Protection Services 7,199,700 4,895,796 2,303,904 Services Related to a Highway 49,056,935 33,358,716 15,698,219 Public Works 3,335,000 2,267,800 1,067,200 Parks and Recreation Services 84,867,678 80,624,295 4,243,384 Library Services 11,703,106 11,117,951 585,155 Wastewater - Sewers 6,870,121 4,671,682 2,198,439 Water Distribution 5,590,687 3,801,667 1,789,020 Total 168,623,227 140,737,906 27,885,321 Increased Service Needs Attributable to Anticipated Development The following tables outline the components and rates of the current by-law indexed January 1, 2024 and those of the draft by-law arising from the Background Study. Table 2 presents the new development charge by-law rates by development type. Tables 3 and 4 summarize the difference between the current and calculated DC rates for a single and non-residential development over the first 5 years of the new by-law’s life, respectively. These rates would be subject to semi-annual indexation. Table 2 Draft development charge by-law rates by development type Single and Semi-Detached Dwelling Multiples Apartments - Large Apartments - Small Special Care/Special Dwelling Units (per sq.ft. of Gross Floor Area) (per sq.m of Gross Floor Area) Town-Wide Services/Class of Service: Wastewater Services 1,233 946 692 476 383 0.55 5.92 Water Services 1,003 769 563 387 312 0.45 4.84 Services Related to a Highway 9,404 7,212 5,281 3,629 2,922 4.22 45.42 Fire Protection Services 1,292 991 726 499 401 0.58 6.24 Library Services 2,935 2,251 1,648 1,133 912 0.15 1.61 Parks and Recreation Services 21,280 16,321 11,950 8,211 6,612 1.07 11.52 Total Town-Wide Services/Class of Services 37,147 28,490 20,860 14,335 11,542 7.02 75.56 Service/Class of Service Page 7 of 232 February 6, 2024 8 of 10 Report No. FIN24-006 Table 3 Residential development charge comparison 2024 2025 2026 2027 2028 Town-Wide Services/Classes: Wastewater Services 1,071 986 1,048 1,110 1,171 1,233 Services Related to a Highway 8,962 7,523 7,993 8,464 8,934 9,404 Fire Protection Services 1,300 1,034 1,098 1,163 1,227 1,292 Library Services 2,227 2,348 2,495 2,642 2,788 2,935 Parks and Recreation Services 21,435 17,024 18,088 19,152 20,216 21,280 General Government 1,132 - - - - - Water Services 550 802 853 903 953 1,003 Total Town-Wide Services 36,677 29,718 31,575 33,432 35,290 37,147 Calculated CurrentService/Class of Service Table 4 Non-residential development charge comparison 2024 2025 2026 2027 2028 Town-Wide Services/Classes: Wastewater Services 4.74 4.74 5.03 5.33 5.62 5.92 Services Related to a Highway 40.10 36.34 38.61 40.88 43.15 45.42 Fire Protection Services 5.79 4.99 5.31 5.62 5.93 6.24 Library Services 1.03 1.29 1.37 1.45 1.53 1.61 Parks and Recreation Services 10.26 9.21 9.79 10.37 10.94 11.52 General Government 5.05 - - - - - Water Services 2.52 3.88 4.12 4.36 4.60 4.84 Non-Residential Comparison per sq.m Calculated Current Service/Class of Service It is important to note that Aurora’s development charge is only one of three development charges applicable to a development within the Town. York Region and educational development charges would also apply. Page 8 of 232 February 6, 2024 9 of 10 Report No. FIN24-006 Communications Considerations This report will be made available on the Town’s website for the public. In addition, as per Schedule 2 (s. 13 and O. Reg 82/98 s.10 (5)), the Town will provide notice to the public within 20 days of the passing of the Town’s revised development charge by-law in a local newspaper. Notice will also be given by personal service, fax or mail to:  everyone who has given the municipal clerk a written request for notice and - provided a return address  the clerk of the upper tier municipality involved  the secretary of every school board with jurisdiction within the area to which the by-law applies Finally, notification will be made via the Town’s website and other social media channels. Climate Change Considerations There are no directly arising climate change considerations from this report. Link to Strategic Plan Setting a DCA compliant Development Charge by-law is the primary tool with which Ontario municipalities can finance the cost of expanding infrastructure and service amenities to accommodate growth demands in their communities. Optimizing the charge within the permissions of the legislation demonstrates the Strategic Plan principles of Leadership in Corporate Management. Alternative(s) to the Recommendation Council may direct staff to make any changes to the draft by-law as long as it remains compliant with the current DCA and its accompanying regulation, or to respond to any specific concerns or issues raised by members of the public at the meeting. However, delays in the implementation of the new by-law may result in the lapsing of the Town’s current by-law, disabling the Town’s legal capability to collect DCs until such time the new by-law is enacted. Page 9 of 232 February 6, 2024 10 of 10 Report No. FIN24-006 Conclusions Staff recommend that the comments, questions and suggestions arising from this statutory public meeting be referred back to staff for consideration, if any. Next steps include Council’s formal review and approval of the Town’s updated DC Study and by- law. A formal notification will be released upon the Town’s formal adoption of the new DC by-law. Attachments Attachment #1 – Town of Aurora Development Charge Background Study and Proposed DC By-law Attachment #2 – Town of Aurora Development Charge Background Study Presentation Previous Reports None Pre-submission Review Agenda Management Team review on January 18, 2024 Approvals Approved by Rachel Wainwright-van Kessel, Director, Finance Approved by Doug Nadorozny, Chief Administrative Officer Page 10 of 232 :DWVRQ $VVRFLDWHV(FRQRPLVWV/WG  -DQXDU\LQIR#ZDWVRQHFRQFD 'HYHORSPHQW&KDUJHV%DFNJURXQG 6WXG\ 7RZQRI$XURUD Attachment #1 Page 11 of 232  :DWVRQ $VVRFLDWHV(FRQRPLVWV/WG +?$XURUD?'&?5HSRUW?)LQDO5HSRUWGRF[ 7DEOHRI&RQWHQWV 3DJH ([HFXWLYH6XPPDU\L ,QWURGXFWLRQ  3XUSRVHRIWKLV'RFXPHQW  6XPPDU\RIWKH3URFHVV 1.3 &KDQJHVWRWKH'&$Bill 108, 138, 197, and 213  %LOO0RUH+RPHV0RUH&KRLFH$FW±$Q$FWWR$PHQG 9DULRXV6WDWXWHVZLWK5HVSHFWWR+RXVLQJ2WKHU 'HYHORSPHQWDQG9DULRXV0DWWHUV  %LOO3ODQWR%XLOG2QWDULR7RJHWKHU$FW  %LOO&29,'(FRQRPLF5HFRYHU\$FW  %LOO%HWWHUIRU3HRSOH6PDUWHUIRU%XVLQHVV$FW 1.4 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&%&  8QGHUWKH3ODQQLQJ$FW,WZDVSURSRVHGWKDWDPXQLFLSDOLW\PD\E\E\ODZLPSRVHD &%&DJDLQVWODQGWRSD\IRUWKHFDSLWDOFRVWVRIIDFLOLWLHVVHUYLFHVDQGPDWWHUV UHTXLUHGEHFDXVHRIGHYHORSPHQWRUUHGHYHORSPHQWLQWKHDUHDWRZKLFKWKHE\ODZ DSSOLHV7KH&%&ZDVSURSRVHGWRLQFOXGHIRUPHUO\HOLJLEOH'&VHUYLFHVWKDWDUHQRW LQFOXGHGLQWKHDERYHOLVWLQJLQDGGLWLRQWRSDUNODQGGHGLFDWLRQDQGERQXV]RQLQJ FRQWULEXWLRQV 1.3.2 Bill 138: Plan to Build Ontario Together Act, 2019 2Q1RYHPEHUWKH3URYLQFHUHOHDVHG%LOOZKLFKSURYLGHGIXUWKHU DPHQGPHQWVWRWKH'&$DQG3ODQQLQJ$FW7KLV%LOOUHFHLYHG5R\DO$VVHQWRQ 'HFHPEHUDQGZDVSURFODLPHGZKLFKUHVXOWHGLQVHFWLRQVUHODWHGWRWKH '&$ VFKHGXOH EHFRPLQJHIIHFWLYHRQ-DQXDU\7KHDPHQGPHQWVWRWKH '&$LQFOXGHGUHPRYDORILQVWDOPHQWSD\PHQWVIRUFRPPHUFLDODQGLQGXVWULDO GHYHORSPHQWVWKDWZHUHRULJLQDOO\LQFOXGHGLQ%LOO 1.3.3 Bill 197: COVID-19 Economic Recovery Act, 2020 ,QUHVSRQVHWRWKHJOREDOSDQGHPLFWKDWEHJDQDIIHFWLQJ2QWDULRLQHDUO\WKH 3URYLQFHUHOHDVHG%LOOZKLFKSURYLGHGDPHQGPHQWVWRDQXPEHURI$FWVLQFOXGLQJ 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Service +RXVLQJVHUYLFHVDUHUHPRYHGDVDQHOLJLEOHVHUYLFH0XQLFLSDOLWLHVZLWKE\ODZVWKDW LQFOXGHDFKDUJHIRUKRXVLQJVHUYLFHVFDQQRORQJHUFROOHFWIRUWKLVVHUYLFH 1.4.3 New Statutory Exemptions for Affordable Units, Attainable Units, and Affordable Inclusionary Zoning Units $IIRUGDEOHXQLWVDWWDLQDEOHXQLWVDQGLQFOXVLRQDU\]RQLQJXQLWV DIIRUGDEOH DUHH[HPSW IURPWKHSD\PHQWRI'&VDVIROORZV x ,QFOXVLRQDU\=RQLQJ8QLWV$IIRUGDEOHKRXVLQJXQLWVUHTXLUHGXQGHULQFOXVLRQDU\ ]RQLQJE\ODZVDUHH[HPSWIURPD'& x $IIRUGDEOH5HQWDO8QLWV:KHUHUHQWLVQRPRUHWKDQRIWKHDYHUDJHPDUNHW UHQWDVGHILQHGE\DQHZEXOOHWLQSXEOLVKHGE\WKH0LQLVWU\RI0XQLFLSDO$IIDLUV DQG+RXVLQJ x $IIRUGDEOH2ZQHG8QLWV:KHUHWKHSULFHRIWKHXQLWLVQRPRUHWKDQRIWKH DYHUDJHSXUFKDVHSULFHDVGHILQHGE\DQHZEXOOHWLQSXEOLVKHGE\WKH0LQLVWU\RI 0XQLFLSDO$IIDLUVDQG+RXVLQJ x $WWDLQDEOH8QLWV([FOXGHVDIIRUGDEOHXQLWVDQGUHQWDOXQLWVZLOOEHGHILQHGDV SUHVFULEHGGHYHORSPHQWRUFODVVRIGHYHORSPHQWDQGVROGWRDSHUVRQZKRLVDW ³DUP¶VOHQJWK´IURPWKHVHOOHU o 1RWHIRUDIIRUGDEOHDQGDWWDLQDEOHXQLWVWKHPXQLFLSDOLW\VKDOOHQWHULQWR DQDJUHHPHQWWKDWHQVXUHVWKHXQLWUHPDLQVDIIRUGDEOHRUDWWDLQDEOHIRU \HDUV )XUWKHUWRWKHDERYH%LOOAffordable Homes and Good Jobs Act, 2023ZDV UHOHDVHGRQ6HSWHPEHUZKLFKSURSRVHVDQHZGHILQLWLRQRI³DIIRUGDEOH´XQGHU WKH'&$ Page 34 of 232   :DWVRQ $VVRFLDWHV(FRQRPLVWV/WG 3$*( +?$XURUD?'&?5HSRUW?)LQDO5HSRUWGRF[ x 2ZQHGXQLW OHVVHURI FRVWLVOHVVWKDQRIWKHWKSHUFHQWLOHRILQFRPHIRU KRXVHKROGVLQWKHPXQLFLSDOLW\RURIWKHDYHUDJHSXUFKDVHSULFHDVGHILQHG LQDQHZ%XOOHWLQ x 5HQWDOXQLW OHVVHURI UHQWLVOHVVWKDQRIWKHWKSHUFHQWLOHRILQFRPHIRU UHQWDOKRXVHKROGVRUDYHUDJHPDUNHWUHQWVHWRXWLQDQHZ%XOOHWLQ Note: the above exemptions are not currently in force. 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&DOFXODWLRQRI'HYHORSPHQW&KDUJH&UHGLWV3URYLGHGWR5HVLGHQWLDO'HUHOLFW %XLOGLQJV'HPROLVKHG 1XPEHURI0RQWKVIURP'DWHRI'HPROLWLRQ3HUPLWWR'DWHRI %XLOGLQJ3HUPLW,VVXDQFH &UHGLW 3URYLGHG 8SWRDQGLQFOXGLQJPRQWKV  *UHDWHUWKDQPRQWKVXSWRDQGLQFOXGLQJPRQWKV  *UHDWHUWKDQPRQWKVXSWRDQGLQFOXGLQJPRQWKV  *UHDWHUWKDQPRQWKVXSWRDQGLQFOXGLQJPRQWKV  *UHDWHUWKDQPRQWKV  &UHGLWVDUHFDOFXODWHGDVDSHUFHQWDJHRIWKHSUHYDLOLQJGHYHORSPHQWFKDUJHUDWHV IRUWKHW\SHRIGZHOOLQJGHPROLVKHG Page 203 of 232 Public MeetingFebruary 6, 2024Town of Aurora2024 Development Charges1Attachment #Page 204 of 232 Format for Public Meeting•Opening Remarks•Public Meeting Purpose•Study Process and Timelines•Development Charges Overview•Presentation of the Proposed Policies and Charges•Presentations by the Public•Questions from Council•Conclude Public Meeting2Page 205 of 232 Public Meeting Purpose•The public meeting is to provide for a review of the D.C.proposal and to receive public input on the proposedpolicies and charges.•The meeting is a mandatory requirement under theDevelopment Charges Act (D.C.A.).•Prior to Council’s consideration of a by-law, a backgroundstudy must be prepared and available to the public aminimum 60 days prior to the D.C. by-law passage.3Page 206 of 232 Study Process and Timelines9Project Kick-off Meeting –June 16, 20239Data Compilation –June to November 20239Policy Review –June to November 20239Staff Interviews (Review Service Standards, Capital, Growth Forecast, etc.) –September 20239Stakeholder Presentation #1 –September 14, 20239Council Workshop –October 3, 20239Stakeholder Presentation #2 –January 12, 20249Final Report and Draft By-law –January 23, 2024™Mandatory Public Meeting –February 6, 2024¾General Committee Meeting –March 5, 2024¾Council Consideration of D.C. By-law–March 26, 20244Page 207 of 232 Development Charges (D.C.)Purpose:•To recover the capital costs associated with residential and non-residential growth within a municipality•The capital costs are in addition to what costs would normally be constructed as part of a subdivision (i.e. internal roads, sewers, watermains, sidewalks, streetlights, etc.)•Municipalities are empowered to impose these charges via the Development Charges Act (D.C.A.)5Page 208 of 232 D.C. Eligible Services1.Water2.Wastewater3.Storm water drainage4.Services related to a highway5.Electrical power services.6.Toronto-York subway extension.7.Transit 8.Waste diversion9.Policing Services10.Fire protection11.Ambulance12.Library13.Long-term Care14.Parks and Recreation15.Public Health services16.Childcare and early years services17.Housing services18.Provincial Offences Act19.Emergency Preparedness20.Airports (Waterloo Region only)6These are the current D.C. eligible services being considered in the calculations*Amended as per Bill 23Page 209 of 232 Changes to D.C. Legislation - OverviewThere were a number of changes to the D.C.A. since the passage of the Town’s 2019 D.C. By-law which were detailed in the Town’s 2021 D.C. Update Study. These changes were provided through: •Bill 108: More Homes, More Choice Act, 2019•Bill 138: Plan to Build Ontario Together Act, 2019•Bill 197: COVID-19 Economic Recovery Act, 2020 •Bill 213: Better for People, Smarter for Business Act, 2020Since the completion of the D.C. Update Study in 2021, further legislative changes have been made to the D.C.A. through Bill 23, More Homes Built Faster Act, 2022 and Bill 134, Affordable Homes and Good Jobs Act, 2023.7Page 210 of 232 Bill 23 Overview•The Province passed Bill 23: More Homes Built Faster Act,2022 on November 28, 2022•This Bill amends a number of pieces of legislation,including the Development Charges Act (D.C.A.), and thePlanning Act•These changes impact development charges (D.C.s),community benefits charges (C.B.C.s), and parklanddedication•The changes provided through Bill 23 negatively impactthe Town’s ability to collect revenues to fund growth-related capital expenditures8Page 211 of 232 Changes to D.C. LegislationBill 23/Bill 1349Currently Not in Force:•Affordable Rental Unit: Where rent is no more than 80% of the average market rent, as defined by a new Bulletin,published by the Ministry of Municipal Affairs and Housing. •Affordable Owned Unit: Where the price of the unit is no more than 80% of the average purchase price, as defined by a new Bulletin, published by the Ministry of Municipal Affairs and Housing.•Attainable Unit: Excludes affordable units and rental units, will be defined as prescribed development or class of developmentand sold to a person who is at “arm’s length” from the seller.•Note: for affordable and attainable units, the municipality shall enter into an agreement which ensures the unit remains affordable or attainable for 25 years.Note: Bill 134 received Royal Assent on December 4, 2023, which provides a new definition of “affordable” under the D.C.A.:•Owned unit (lesser of): cost is less than 30% of the 60thpercentile of income for households in the municipality or 90% of the average purchase price as defined in a new Bulletin•Rental unit (lesser of): rent is less than 30% of the 60thpercentile of income for rental households or average market rent set out in a new BulletinCurrently in Force:•Inclusionary Zoning Units: Affordable housing units required under inclusionary zoning by-laws •Non-Profit Housing: Non-profit housing units are exempt from D.C. installment. Outstanding installment payments due after this section comes into force will also be exempt from payment of D.C.s.•Additional Residential Unit Exemptions (units in existing rental buildings, 2nd and 3rd units in existing and new singles, semis, and rowhouses)Page 212 of 232 Changes to D.C. Legislation (continued)Bill 23D.C. Discounts:•Rental Housing Discount (based on number of bedrooms –15%-25%)D.C. Revenue Reduction:•Removal of Housing as an Eligible D.C. Service•Capital Cost Amendments (restrictions to remove studiesand land)•Mandatory Phase-In of D.C. (Maximum charge of 80%, 85%, 90%, 95%,100% for first 5 Years of the by-law) - These rules apply to a D.C. by-law passed on or after January 1, 2022•Historical Levels of Service from 10 years to 15 years10*Note: Currently under review by the ProvincePage 213 of 232 Changes to D.C. Legislation (continued)Bill 23D.C. Administration:•Maximum Interest Rate for Installments and D.C. Freeze (maximuminterest rate would be set at the average prime rate plus 1%)•Requirement to Allocate 60% of the monies in the reserve funds forWater, Wastewater, and Services Related to a Highway•D.C. by-law expiry extended to 10 years11Page 214 of 232 D.C. Methodology –Simplified Steps1.Identify amount, type and location of growth2.Identify servicing needs to accommodate growth3.Identify capital costs to provide services to meet the needs4.Deduct:i.Grants, subsidies and other contributionsii.Benefit to existing developmentiii.Amounts in excess of 15-year historical service calculationiv.D.C. Reserve funds (where applicable)5.Net costs then allocated between residential and non-residentialbenefit6.Net costs divided by growth to calculate the D.C.12Page 215 of 232 Overview of the D.C. Calculation$Cost of Infrastructure Required to Accommodate GrowthResidential and Non-residential GrowthDevelopment Charge per Unit (for Residential Growth)Development Charge per sq.ft. (sq.m) (for Non-residential Growth)Development Charges13Page 216 of 232 Relationship Between Needs to Service New Development vs. FundingService New Growth/UsersDevelopment ChargesRates, Taxes, Reserves, etc.14Page 217 of 232 ExemptionsMandatory Exemptions•Upper/Lower Tier Governments and School Boards;•Industrial building expansions (may expand by 50% with no D.C.);•Development of lands intended for use by a university that receives operating funds from the Government (as per Bill 213);•May add up to 2 apartments in an existing or new detached, semi-detached, or rowhouse (including in an ancillary structure);•Add one additional unit or 1% of existing units in an existing rental residential building;•Affordable and attainable units (to be in force at a later date);•Affordable inclusionary zoning units;•Non-profit housing;•Discount for Rental units based on bedroom size; and•Phase-in of D.C.s.Discretionary Exemptions•Reduce in part or whole D.C. for types of development or classes of development (e.g.industrial or churches);•May phase-in over time; and•Redevelopment credits to recognize what is being replaced on site (not specific in the Act but provided by case law).15*Amended as per Bill 23Page 218 of 232 Current Discretionary Exemptions16•Private schools;•cemetery or burial grounds;•places of worship;•non-residential uses permitted pursuant to section 39 of the Planning Act or any successor thereto;•the issuance of a building permit not resulting in the creation of additional gross floor area;•agricultural uses; •public hospitals; and•land vested in or leased to a university that receives regular and ongoing operating funds from the government for the purposes of post-secondary education.All current exemptions are proposed to continue in the draft by-law.Page 219 of 232 Growth Forecast Summary1710 Year2024 to 2034(Net) Population Increase 13,384Residential Unit Increase 5,899Non-Residential Gross Floor Area Increase (sq.ft.) 3,977,700MeasurePage 220 of 232 Services Being IncludedTown-wide Services:•Fire Protection Services;•Services Related to a Highway;•Public Works (Facilities and Fleet);•Parks & Recreation Services; •Library Services;•Water Services; and•Wastewater Services.18Page 221 of 232 Current Development Charge Rates19As of January 1, 2024Non-ResidentialServiceSingle & Semi DetachedMultiplesApartments 700 sq.ft. and OverApartments Under 700 sq.ft.Special Care/Special Dwelling Unitsper sq.mGeneral ServicesFire Protection Services 1,300 968 786 538 402 5.79Parks and Recreation Services 21,435 15,936 12,946 8,874 6,604 10.26Library Services 2,227 1,656 1,345 921 686 1.03General Government 1,132 843 685 468 349 5.05Total General Services 26,094 19,403 15,762 10,801 8,041 22.13Engineering ServicesServices Related to a Highway 8,962 6,662 5,415 3,712 2,761 40.10Wastewater Services 1,071 798 647 446 329 4.74Water Services 550 410 332 227 170 2.52Total Engineering Services 10,583 7,870 6,394 4,385 3,260 47.36Total Services 36,677 27,273 22,156 15,186 11,301 69.49ResidentialPage 222 of 232 Calculated Development Charge Rates20*Note: The above D.C. rates are subject to the mandatory phase-in from Bill 23Single and Semi-Detached DwellingMultiplesApartments 700 sq.ft. and OverApartments Under 700 sq.ft.Special Care/Special Dwelling Units(per sq.ft. of Gross Floor Area)(per sq.m of Gross Floor Area)General Services:Fire Protection Services 1,292 991 726 499 401 0.58 6.24Parks and Recreation Services 21,280 16,321 11,950 8,211 6,612 1.07 11.52Library Services 2,935 2,251 1,648 1,133 912 0.15 1.61Total General Services 25,507 19,563 14,324 9,843 7,925 1.80 19.38Engineering Services:Services Related to a Highway 9,404 7,212 5,281 3,629 2,922 4.22 45.42Wastewater Services 1,233 946 692 476 383 0.55 5.92Water Services 1,003 769 563 387 312 0.45 4.84Total Engineering Services 11,640 8,927 6,536 4,492 3,617 5.22 56.19Total Services 37,147 28,490 20,860 14,335 11,542 7.02 75.56ServiceRESIDENTIAL NON-RESIDENTIALPage 223 of 232 Development Charges Comparison –Residential (single detached)21*Note: The calculated D.C. rates would equal to $29,718 due to the mandatory phase-inService Current CalculatedTown-Wide Services:Wastewater Services 1,071 1,233Services Related to a Highway 8,962 9,404Fire Protection Services 1,300 1,292Library Services 2,227 2,935Parks and Recreation Services 21,435 21,280General Government 1,132 -Water Services 550 1,003Total Town-Wide Services 36,677 37,147Page 224 of 232 Development Charges Comparison –Non-Residential22*Note: The calculated D.C. rates would equal to $60.45 per sq.m or $5.62 per sq.ft. due to the mandatory phase-inCurrent Calculated Current CalculatedTown-Wide Services:Wastewater Services 4.74 5.92 0.44 0.55Services Related to a Highway 40.10 45.42 3.73 4.22Fire Protection Services 5.79 6.24 0.54 0.58Library Services 1.03 1.61 0.10 0.15Parks and Recreation Services 10.26 11.52 0.95 1.07General Government 5.05 - 0.47 -Water Services 2.52 4.84 0.23 0.45Total Town-Wide Services 69.49 75.56 6.46 7.02per sq.m per sq.ft.ServicePage 225 of 232 Survey of Comparator Municipalities23Page 226 of 232 Residential D.C. Survey –Single Detached241Includes stormwater charge based on area - assuming 12 homes per acre$0$20,000$40,000$60,000$80,000$100,000$120,000$140,000$160,000$180,000$200,000$ per Single Detached DwellingUpper Tier ChargesLower/Single Tier ChargesEducation DC'sPage 227 of 232 Non-Residential D.C. Survey - Retail251Includes stormwater charge based on area - assuming 33% lot coverage$0$10$20$30$40$50$60$70$80$90$100$ per sq.ft.Upper Tier ChargesLower/Single Tier ChargesEducation DC'sPage 228 of 232 Non-Residential D.C. Survey –Non-Retail261Includes stormwater charge based on area - assuming 33% lot coverage2Note: Industrial development is exempt in Toronto 3Non-Industrial Rate presented. Note - Brampton & Mississauga classify as Industrial vs. Non-Industrial$0$10$20$30$40$50$60$70$80$90$100$ per sq.ft.Upper Tier ChargesLower/Single Tier ChargesEducation DC'sPage 229 of 232 Study Process and Timelines9Project Kick-off Meeting –June 16, 20239Data Compilation –June to November 20239Policy Review –June to November 20239Staff Interviews (Review Service Standards, Capital, Growth Forecast, etc.) –September 20239Stakeholder Presentation #1 –September 14, 20239Council Workshop –October 3, 20239Stakeholder Presentation #2 –January 12, 20249Final Report and Draft By-law –January 23, 20249Mandatory Public Meeting –February 6, 2024¾General Committee Meeting –March 5, 2024¾Council Consideration of D.C. By-law–March 26, 202427Page 230 of 232 Questions28QuestionsPage 231 of 232 The Corporation of The Town of Aurora By-law Number XXXX-24 Being a By-law to confirm actions by Council resulting from a Special Meeting of Council on February 6, 2024. The Council of the Corporation of The Town of Aurora hereby enacts as follows: 1. That the actions by Council at its Special Meeting of Council held on February 6, 2024, in respect of each motion, resolution and other action passed and taken by the Council at the said meeting is 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. Enacted by Town of Aurora Council this 6th day of February, 2024. Tom Mrakas, Mayor Michael de Rond, Town Clerk Page 232 of 232