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Agenda - Special Council - 20090506SPECIAL COUNCIL MEETING AGENDA DEVELOPMENT CNARGES N0.09-13 WEDNESDAY, MAY 6, 2009 7:00 P.M. COUNCIL CNAMBERS AURORA TOWN NALL PUBLIC RELEASE May 1, 2009 Iluk AUlZORA TOWN OF AURORA SPECIAL COUNCIL MEETING AGENDA DEVELOPMENT CHARGES NO. 09-13 Wednesday, May 6, 2009 7:00 p.m. Council Chambers I DECLARATIONS OF PECUNIARY INTEREST ll APPROVAL OF AGENDA RECOMMENDED: THAT the agenda as circulated by the Corporate Services Department be approved as presented. 111 DELEGATIONS Mr. Craig Binning of the Hemson Group Re: Development Charges Background Study IV CONSIDERATION OF ITEM V READING OF BY-LAW RECOMMENDED: THAT the following listed by-law be given 1st, 2nd and 3rd readings, and enacted: 5138-09 BEING A BY-LAW to confirm actions by pg. 146 Council Resulting from Special Council Meeting 09-13 on May 6, 2009 VI ADJOURNMENT Special Council Meeting Agenda - Development Charges Wednesday, May 6, 2009 Page 2 of 2 AGENDA ITEM 1. FS09-026 - Update to Development Charges By-law pg. 1 RECOMMENDED: THAT all comments, questions and suggestions arising from the statutory Public Meeting be referred to staff for consideration; and THAT staff prepare a final report for Council with a recommended by-law for adoption pursuant to the requirements of the Development Charges Act, 1997, with such report to be made by May 26, 2009. Special Council Agenda - Development Charges ITEM # " May 6, 2009 A�JIZORA j'ou;reiwgoodCotst[uut� RESOLUTION FORM Moved By Resolution: COUNCIL MEETING 09-13 - MAY 6, 2009 - ITEM # 1 Seconded By 1. FS09-025 - Update to Development Charges By-law THAT all comments, questions and suggestions arising from the statutory Public Meeting be referred to staff for consideration; and THAT staff prepare a final report for Council with a recommended by-law for adoption pursuant to the requirements of the Development Charges Act, 1997, with such report to be made by May 26, 2009. Proposed Resolution/Amendment (if applicable): CARRIED DEFEATED - 1 - Special Council Agenda - Development Charges May 6, 2009 ITEM # E2 -2- Special Council Agenda - Development Charges ITEM # 1 - 3 May 6, 2009 TOWN OF AURORA AURORA SPECIAL COUNCIL REPORT No. FS09-025 SUBJECT: Update to Development Charges By-law FROM: Dan Elliott, Director of Finance & Treasurer DATE: May 6, 2009 RECOMMENDATIONS That all comments, questions and suggestions arising from the statutory Public Meeting be referred to staff for consideration; and That staff prepare a final reportfor Council with a recommended by-law foradoption pursuant to the requirements of the Development Charges Act, 1997, with such report to be made by May 26, 2009. PURPOSE OF THE REPORT To present Council and the public with the Development Charges Background Study and draft by-law as required by the Development Charges Act, as a key final step in updating the Town's current Development Charges By-law #4533-04. F,which expires June 8, 2009. BACKGROUND In accordance with the Development Charges Act, 1997, (the "DCA"), every development charges by-law must be reviewed every five years. Duration of development charge by-law 9. (1) Unless it expires oris repealed earlier, a development charge by-law expires five years after the day it comes into force. As the Town of Aurora's By-law was passed on June 8, 2004 this would mean the by-law will expire on June 8, 2009. Also in accordance with the DCA: 10.(1) Before passing a development charge by-law, the council shall complete a development charge background study. 1997, c. 27, s. 10 (1). 12.(1) Before passing a development charge by-law, the council shall, (a) hold at least one public meeting; -3- Special Council Agenda - Development Charges ITEM # 4 - 4 May 6, 2009 May 6, 2009 - 2 - Report No. FS09-025 (b) give at least 20-days notice of the meeting or meetings in accordance with the regulations, and (c) ensure that the proposed by-law and the background study are made available to the public at least two weeks prior to the meeting or, if there is more than one meeting, prior to the first meeting. 1997, c. 27, s. 12 (1). Making representations 12.(2) Any person who attends a meeting under this section may make representations relating to the proposed by-law. 1997, c. 27, s. 12 (2). Council determination is final 12.(3) If a proposed by-law is changed following a meeting under this section, the council shall determine whether a further meeting under this section is necessary and such a determination is final and not subject to review by a court or the Ontario Municipal Board. 1997, c. 27, s. 12 (3 Today's Special Meeting of Council was called for the purpose of holding the requisite statutory Public Meeting. The Meeting was properly advertised to the public. Although not required by the DCA, in addition to the public notice, staff mailed letters of notice of the Meeting to each developer with active development files with the Town. The public notice and the letters 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, as well as available from the Town offices. Those parties which contacted the Town prior to the availability of the documents received emails once the materials were available on-line. The Town's consultants, Hemson Consulting Ltd., will make a slide presentation covering two components. First, they will conduct a short educational session to advise members of the public and Council of the purpose, mechanism and process for development charges and their calculations. They will then proceed to walk through the process, content and highlights of the Background Study material, including a discussion and comparison of the resultant proposed development charges. Following this presentation, staff would like to present changes that have been made to the text of the by-law and the reasons therefor. Following the staff presentation, the Chair of the Meeting will invite members of the public to speak. Registered delegates will be followed by unregistered delegates. The Town's Website invited interested parties 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 those concerns can be reviewed and responses provided at the Meeting. Next Steps: Following the Meeting, staff will consider all comments and questions, and prepare a final report to Council, together with a final draft by-law for adoption by Council on May 281", 2009. Any amendments to the draft Background Study, development charges or by-law text, if any, will be documented in the report -4- Special Council Agenda - Development Charges ITEM # " 5 May 6, 2009 May 6, 2009 - 3 - Report No. FS09-026 COMMENTS The Development Charges Background Study has been prepared in accordance with the DCA. The first eight pages of the Background Study provide an excellent overview of the processes, issues and results of the Background Study. Development charges fund the expansion of services and capacity of municipal infrastructure to meet the needs of the growing community. Development charges do not recover 100% 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. Non -Residential development charges have funding components forgeneral government, fire services, public works, and hard services of roads, water and sewer works. Residential development charges include all of those components, plus additional components for library, recreation and parks services. Residential development charges are proposed to increase 39%, while non-residential development charges are proposed to increase 12%. The increase in the percentage of residential development charges is higher due to apportionment changes, as well as significant cost .increases in construction and implementation of services in parks, recreation and library components. Changes to the By-law Town staff administer the Town's Development Charges By-law on a daily basis. Staff also must administer and collect development charges for the Region of York and the school boards. Each have their own by-law with subtle differences. Staff have reviewed the existing Development Charges By-law and have drafted the new bylaw to clarify contentious areas for administrative purposes, as well as to harmonize closer to the Regional and school board by-laws to streamline the administration processes. The most significant modification made to the Development Charges By-law was in section 3.5 to clarify the rules for exemptions for enlargements to industrial -use buildings. The DCA sets out broad mandatory exemptions for expansions of up to 50% of the gross floor area of an industrial -use building. Staff have taken wording from another sample by-law and adapted it for the Town of Aurora, making it clear that only expansions from an original building, up to a total of 50% of that original building, qualify for exemption. Further, section 3.8 of the Development Charges By-law was amended to allow only four years from demolition to redevelopment to obtain a development charge credit for the structure or unit demolished, rather than the previously stated five year period. This amendment is to harmonize the Town's Development Charges By-law with the provisions of the Region of York's by-law. Consequently, staff have introduced a transition clause to continue the effect of the five-year period for those properties demolished prior to the enactment of the Town's new development charges by-law. -5- Special Council Agenda - Development Charges ITEM # - 6 May 6, 2009 Mav 6. 2009 - 4 - Report No. FS09-025 Section 3.9 of the Development Charges By-law concerning the timing of payment of development charges was updated to make it clear that development charges are payable at the time of issuance of the first permit for a structure or building, clarifying that full payment of development charges is expected for foundation permits if such is required. Development charges can be indexed to escalate with the construction price index. The proposed draft by-law proposes annual indexing to take place starting January 1, 2010. The draft by-law makes no provision for transitional rate increases or phase -ins of the new development charges. Any such phase -in arrangement would result in the developers paying less than optimal costs of servicing the growth of the community. Appeal Mechanism The DCA provides a mechanism for members of the public to appeal the revised development charges by-law to the Ontario Municipal Board (the "OMB") within forty days following adoption by the Council. The OMB then hears and makes final decision on the matter; however, until the decision of the OMB is issued, the adopted by-law remains in effect, and development charges as set out therein remain due and payable. ALTERNATIVE(S) TO THE RECOMMENDATIONS Allowing the current Development Charges By-law to lapse would disable the Town's legal capability to collect development charges. FINANCIAL IMPLICATIONS In 2008, the Town collected $7,475,000 of development charges for Town purposes under the authority of its Development Charges By-law. All funds collected are held in dedicated reserve funds until required for infrastructure investment. CONCLUSIONS Staff recommend that the comments, questions and suggestions arising from the statutory Public Meeting be referred back to staff for consideration, and for staff to prepare a final report to Council for the enactment of an updated development charges by-law for the Town. ATTACHMENTS Attachment #1: Development Charges Background Study —Town of Aurora, 2009 Attachment #2: Draft Development Charges By-law, Town of Aurora, 2009 -6- Special Council Agenda - Development Charges ITEM # " 7 May 6, 2009 May 6, 2009 - 5 - Report No. FS09-025 PRE -SUBMISSION REVIEW This report has been reviewed by staff in the Legal Services, Building Administration, Planning and Development, Finance and the CAO's departments. Prepared by. Dan Elliott, Director of Finance & Treasurer-Ext. #4772 bitForibit, C.A. Director of Finance/Treasurer -7- Neil Garb Chief Administrative Officer Special Council Agenda = Development Charges ITEM # " 2 May 6, 2009 TABLE OF CONTENTS EXECUTIVE SUMMARY .............................................. 1 INTRODUCTION ............................................... 9 Il THE METHODOLOGY USES A TOWNSHIP -WIDE APPROACH TO ALIGN GROWTH -RELATED COSTS AND BENEFITS ................ 11 A. Town -wide Development Charges Are Proposed ................... 11 B. Key Steps When Determining Development Charges for Future Growth -related Projects 12 III GROWTH FORECAST ........................................... 15 A. Residential Forecast Is for Population Growth in New Units of 15,912 Persons Between 2009 and 2018 15 B. Non-residential Space Forecast Is Growth of 458,050 Square Metres of Additional Gross Floor Area Between 2009 and 2018 ............. 15 IV HISTORIC CAPITAL SERVICE LEVELS ............................... 18 V GROWTH -RELATED CAPITAL FORECAST ........................... 20 A. Growth -related Capital Forecast Is Provided for Council's Approval ..... 20 B. The Growth -related Capital Forecast for General and Roads and Related Services 20 C. The Growth -related Capital Forecast for Water and Sewer Services ..... 22 VI PROPOSED DEVELOPMENT CHARGES ARE CALCULATED IN ACCORDANCE WITH THE DCA................................ 25 A. Development Charges Calculation .............................. 25 B. Comparison of 2009 Newly Calculated Development Charges with Charges Currently in Force in Aurora VII LONG-TERM CAPITAL AND OPERATING COSTS ..................... 35 A. Net Operating Costs for the Township Services to Increase over the Forecast Period ...................................... 35 B. Long-term Capital Financing from Non -development Charges Sources Totals $6.7 Million ................................... 35 VIII OTHER ISSUES AND CONSIDERATIONS ............................ 37 A. Development Charges Administration ............................ 37 B. Local Service Definitions ..................................... 37. APPENDICES -9- Special Council Agenda - Development Charges May 6, 2009 ITEM # - 3 EXECUTIVE SUMMARY Hemson Consulting Ltd. was retained by the Town of Aurora to complete a Development Charges Background Study. This Background Study provides the basis and background to update the Town's development charges to accurately reflect the servicing needs and. fully recover the increasing costs related to servicing growth in Aurora. A. BACKGROUND AND INTRODUCTION • The Development Charges Act, 1997 (the DCA) and its associated regulation (0. Reg. 82198) allow municipalities in Ontario to recover for growth -related capital costs from new development. • This study calculates new development charges for the Town of Aurora in compliance with the provisions of the DCA. • The Town of Aurora's existing development charges by-law expires on June 8 2009; however, Council may choose to pass a new development charges by- law before the legislated five-year expiry date. • The Town needs to continue implementing development charges to fund capital projects related to growth throughout Aurora so that development continues to be serviced in a fiscally responsible manner. The calculated changes to the development charges rates are required in order to reflect the revised costs associated with the infrastructure requirements. • This report identifies the growth -related net capital costs which are attributable to development that is forecast to occur in the Town. These costs are apportioned to types of development (residential, non-residential) in a manner that reflects the increase in the need for each service attributable to each type of development. This report therefore presents development charges for each type of development. HEMSON Special Council Agenda - Development Charges ITEM # " 4 May 6, 2009 2 • The DCA and O. Reg. 82/98 require that a development charges background study be prepared in which development charges are determined with reference to: • A forecast of the amount, type and location of housing units, population and non-residential development anticipated in the Town; • A review of future capital projects, including an analysis of gross expenditures, funding sources, and net expenditures incurred or to be incurred by the Town to provide for the expected development, including the determination of the growth- and non -growth -related components of the capital projects; and • An examination of the long-term capital and operating costs for the capital infrastructure required for each service to which the development charges by-law would relate. B. GROWTH FORECAST • Consistent with the York Region 2031Population and Employment Forecasts, a growth forecast has been derived for the purposes of this Development Charges Background Study. The residential and non-residential growth projections are based on those found in the aforementioned study. • The Town is forecast to add approximately 5,920 new households in the 10- year planning period from 2009 to 2018. This translates into a population of roughly of 15,910 in the newly constructed units. To residential build -out, the Town is forecast to add approximately 8,110 new households for a built - out population in new households of 21,489 in approximately year 2031. • The employment forecast for the Town is also based on the projections found in the York Region 2031 Population and Employment Forecasts, and is forecast to add approximately 8,850 employees in the ten-year planning period and 12,540 new employees to 2031. This results in the addition of 458,050 square metres of new non-residential building space from 2009 to 2018, and 649,010 square metres from 2009 to 2031. HEMSON -11- Special Council Agenda - Development Charges ITEM # " S May 6, 2009 3 • The following is a summary of the projected growth for the Town:. RESIDENTIAL FORECAST Existing 2009-2018 2009.2031 As At 2009-2018 Total at 2009-2031 Total at Mid -Year Growth 2018 Growth 2031 2008 Households 16,390 5,922 22,312 8,110 24,500 Population Census 51,300 13,960 65,260 16,400 67,700 With Undercount 53,350 14,520 67,870 17,050 - 70,400 In New Households 15,912 21,489 NON-RESIDENTIAL Existing 2009-2018 2009-2031 FORECAST As At 2009-2018 Total at 2009-2031 Total at Mid -Year Growth 2018 Growth 2031 2008 Non•Residential Building 458,050 649,010 Space (sq.m) Employment (by place of work) 22,160 8,850 31,010 12,540 34,700 C. ELIGIBLE SERVICES ARE INCLUDED IN THE ANALYSIS • The following Town services have been included in the development charges analysis: • General Government • Library Board • Fire Department • Indoor Recreation • Park Development and Facilities • Public Works and Fleet • Roads and Related • Water Distribution • Sanitary Sewers HEMSON Special Council Agenda - Development Charges ITEM # 1-6 May 6, 2009 4 D. THE TOWN HAS AN EXTENSIVE GROWTH -RELATED CAPITAL PROGRAM FOR THE PROVISION OF ELIGIBLE SERVICES General Services 2009-2010 Town staff in collaboration with Hemson Consulting has developed a growth -related capital program setting out projects that are required to service the anticipated growth. The growth -related capital programs are based on a ten-year planning period from 2009 to 2018. • The gross cost of the Town's growth -related capital program for general services amounts to $65.8 million and provides for a wide range of infrastructure expansions. Of the $65.8 million, approximately $50.2 million has been identified as eligible for recovery through development charges over the 2009-2018 planning period. • The DCA requires that growth -related net capital costs for most "general" services be reduced by 10 per cent in calculating the applicable development charges for these services. The 10 per cent share of growth -related net capital costs not included in the development charges calculations must be funded from non -development charges sources. • In total, about $5.3 million is identified as the required 10 per cent reduction. • Non -development charges funding for replacement portions of the capital forecast and for portions of growth -related capital projects that benefit existing development will total an additional $1:4 million. This amount represents the replacement portion of snow storage facility for Public Works. These portions of capital costs would have to be funded from fundraising, property taxes and other non -development charges revenue sources. A share of the capital forecast is for portions of projects that relate to growth in the post-2018 period (for which future development charges could be collected) and to general service level increases. In total, about $3.4 million falls within this definition, a portion of which may represent a general service level increase which would require tax rate funding. HEMSON Special Council Agenda - Development Charges ITEM # �7 May 6, 2009 5 • The following is a summary of the growth -related capital program for general services: Service Gross Cost ($000) DC Recoverable 2009.2018 ($000) General Government $2,100.0 $1,890.0 Library Board $9,540.0 $6,342.9 Fire Services $5,757.0 $2,193.9 Recreation Services $ 28,443.2 $24,979.8 Parks $13,409.0 $12,060.0 Public Works $7,330.0 $2,722.9 Total —1O-Year General Services $66,570.2 $50,189.5 • It is estimated that net annual property tax -supported operating costs will increase by approximately $4.3 million by 2018 as facilities and infrastructure listed in the capital forecast are operated and maintained. These costs should be funded from the increase in property assessment by new development. • Details regarding the capital programs for the general services are provided in Appendix B of this report. Engineered Services2009-2031 • The growth -related capital program for roads and related, water and sewer services is based on a build -out planning period from 2009 to 2031. • The capital program for roads and related services amounts to $34.3 million, of which $30.3 million is recoverable through development charges. • The total estimated amount for the sanitary sewerage services is $9.1 million; the full amount of the capital program is identified as recoverable through development charges. HEMSON -14- Special Council Agenda - Development Charges ITEM # May 6, 2009 b • Water servicing is the final engineered service that the Town is intending to recover for and the growth -related cost adds up to $9.4 million, again, the full amount of the capital program is recoverable through development charges. • Appendix C provides full details of the calculations for the engineered services. E. DEVELOPMENT CHARGES RATES ARE CALCULATED WITH FULL REFERENCE TO THE DCA Development charges rates have been established under the parameters and limitations of the DCA. This study provides the rationale and basis for the calculated rates. A Town -wide uniform cost approach is used to calculate development charges for the eligible services. Uniform residential and non-residential charges are applied throughout the Town. • The calculated charges are the maximum charges the Town may adopt. Lower charges can be approved; however, this will require a reduction in the capital plan and reduced service levels or financing from other sources, most likely property tax increases. • The fully calculated residential charges are recommended to vary by unit type, reflecting the difference in occupancy patterns expected in various unit types and the associated differences in demand that would be placed on Town services. • Based on the Town of Aurora's growth forecast and growth -related capital programs, new residential development charges rates have been calculated. The following is summary of the calculated residential development charges by unit type: HEMSON -15- Special Council Agenda - Development Charges May 6, 2009 ITEM # 9 7 Charge By Unit Type' Apartments Adjusted Percentage General Services Charge Singles & Other Apartments Bachelor of Grand per Capita Semis Multiples Two bedroo and One Total and greater bedroom General Government $98 $323 $255 $196 $147 2.0% Library Board $403 $1,330 $1,048 $806 $605 8.2% Fire Services $90 $297 $234 $180 $135 1.8°/ Recreation Services $1,824 $6,019 $4,742 $3,648 $2,736 37.1% Parks $868 $2,864 $2,257 $1,736 $1,302 17.7% Public Works $118 $389 $307 $236 $177 2.4% Sub -Total - General Services $3,401 $11,222 $8,843 $6,802 $5,102 69.2% Roads & Related $893 $2,947 $2,322 $1,786 $1,340 18.2% Water Supply & Distribution $355 $1,172 $923 $710 $533 7.2% Sewage & Sanitary Sewers $265 $875 $689 $530 $398 5.4% Sub -Total — Engineered Services $1,513 $4,993 $3,934 $3, 126 $2,271 30.8% Total Residential Char e -$4,914 $16,9II8 $12 777 $9,828 $7,373 300.0 (1) Based on Persons Per Unit Of: 3.30 2.60 2.00 1.50 • Based on the Town of Aurora's growth forecast and growth -related capital programs, new non-residential development charges rates have been calculated. The following fully calculated non-residential charges are recommended to be applied on a Town -wide basis for all types of non- residential uses. HEMSON -16- Special Council Agenda - Development Charges May 6, 2009 ITEM# 1-�0 L•1 Adjusted Percentage of General Services Charge Grand Total Per s .m. General Government $1.81 5.6% Library Board n/a 0.0% Fire Services $1.66 5.2% Recreation Services n/a 0.0% Parks n/a 0.0% Public Works $2.17 6.8% Sub -Total - General Services $5.64 17.6% Roads & Related $15.64 48.7% Water Supply & Distribution $6.21 19.3% Sewage & Sanitary Sewers $4.62 14.4% Sub -Total — Engine red Services $26.47 82.4 % Total Non -Residential Charge $32.11 %100.0 F. NEWLY CALCULATED RATES ARE HIGHER THAN CURRENT RATES • The fully calculated residential charge for a fully serviced single unit in Aurora is $16,216, which represents an increase of 39 per cent over the Town's current charge of $11,658. • The charge of $32.11 per square metre of gross floor area represents a 12 per cent increase over the Town's current non-residential charge of $28.62 per square metre. • The scale of these increases is consistent with the experience of many municipalities in York Region as the development charges inflation index has outpaced inflation and resulted in rapid increases in construction costs. • The calculated development charges rates are increasing in the Town of Aurora largely as a result of significant increases in the costs of constructing Town infrastructure. HEMSON - 17- Special Council Agenda - Development Charges May 6, 2009 ITEM# 1-�� 60 1 INTRODUCTION The Development Charges Act, 1997 (DCA) and its associated Ontario Regulation 82/98 (0. Reg. 82198) allow municipalities in Ontario to recover growth -related capital costs from new development. The Town of Aurora Development Charges Background Study is presented as part of a process to establish a development charges by-law that complies with this legislation. The Town of Aurora is experiencing residential growth pressure; it is also an attractive location for a variety of non-residential development. The anticipated growth in Aurora will increase the demand on all Town services. The Town wishes to continue implementing development charges to fund capital projects related to growth so that development continues to be serviced in a fiscally responsible manner. When a development charges by-law is proposed, the DCA and O. Reg. 82/98 require that a development charges background study be prepared in support of the proposed .changes with reference to: • A forecast of the amount, type and location of development anticipated in the Town; • The average capital service levels provided in the Town over the ten-year period immediately preceding the preparation of the background study; • A review of future capital projects; including an analysis of gross expenditures, funding sources, and net expenditures incurred, or to be incurred, by the Town or its local boards to provide for the expected development, including the determination of the growth- and non -growth -related components of the capital projects; and • An examination of the long-term capital and operating costs for the capital infrastructure required for each service to which the development charges by-laws would relate. This study identifies the growth -related net capital costs attributable to development that is forecast to occur in the Town. The costs are apportioned to types of development 1061"MARTORM -18- Special Council Agenda - Development Charges ITEM # May 6, 2009 10 (residential and non-residential) in a manner that reflects the increase in the need for each service attributable to each type of development. The study therefore calculates development charges for each type of development. The DCA provides for a period of public review and comment regarding the calculated development charges. This process includes considering and responding to comments received by members of the public about the calculated charges, Following completion of this process, and in accordance with the DCA and Council's review of this study, it is intended that Council will pass new development charges for the Town. The remainder of this study sets out the information and analysis upon which the calculated development charges are based. Section II designates the services for which the development charges are calculated and the areas within the Town to which the development charges will apply. It also briefly reviews the methodologies that have been used in this background study. Section III presents a summary of the forecast residential and non-residential development which is expected to occur within the Town over two planning periods: a ten-year period from 2009 to 2018, and the build -out period from 2009 to approximately 2031. Section IV summarizes the ten-year historic average capital service levels that have been attained in the Town which form the basis for the development charges calculations. In Section V, the growth -related capital forecast that has been developed by various Town departments is reviewed. Section VI summarizes the calculation of applicable development charges and the resulting calculated development charges by class and type of development. This section also provides a comparison of calculated total development charges rates for the Town with rates currently being levied in similar and surrounding jurisdictions. Section VII provides a discussion of other issues and considerations including by-law rules and policies. HEMSON -19- Special Council Agenda - Development Charges ITEM # 1 - 13 May 6, 2009 11 II THE METHODOLOGY USES A TOWN -WIDE APPROACH TO ALIGN GROWTH -RELATED COSTS AND BENEFITS Several key steps are required when calculating any development charge. However, specific circumstances arise in each municipality which must be reflected in the calculation. In this study, therefore, we have tailored our approach to the Town of Aurora's unique circumstances. The approach to the calculated development charges is focused on providing a reasonable alignment of growth -related costs with the development that necessitates them. This study uses a Town -wide approach for all general and engineered services that Aurora provides. The approach used herein is consistent with Aurora's 2004 Development Charges Background Study. The Background Study provides an update to the historic service levels and the cost of providing future growth -related capital infrastructure. A. TOWN -WIDE DEVELOPMENT CHARGES ARE PROPOSED The DCA provides municipalities with flexibility to define services that will be included in the development charges by-laws, provided that its other provisions, as well as those of O. Reg. 82198, are met. The DCA also requires that the by-laws designate the was within which they shall be imposed. The development charges may apply to all lands in a municipality or to other designated development areas as specified in the by-laws. 1. All Services Based on a Town -Wide Approach All Town residents and employees have access to the infrastructure for the majority of the services the Town provides. As new development occurs, new infrastructure will need to be added so that overall service levels in the Town do not decline. A widely accepted method for sharing the growth -related capital costs for such Town services is to apportion them over all new growth anticipated in the Town. The following services are included in the Town -wide development charges calculation: • General Government • Library Board • Fire Services • Recreation Services • Parks • Public Works HEMSON -20- Special Council Agenda - Development Charges ITEM # May 6, 2009 12 • Town -Wide Engineering (including roads, intersections, sidewalks and trail crossings; water services; and sanitary sewerage services) These services form a reasonable basis on which to plan and administer the development charges. It is noted that the analysis of each of these services examines their individual capital facilities and equipment. The resulting development charges for j these services would be imposed against all development anywhere in the Town. B. KEY STEPS WHEN DETERMINING DEVELOPMENT CHARGES FOR FUTURE GROWTH -RELATED PROJECTS Several key steps are required when calculating development charges for future growth -related projects. They are summarized below. Growth Forecast The first step in the methodology requires that a development forecast be prepared for the ten-year study period from 2009 to 2018, and to build -out or ultimate development in approximately 2031. The forecast of the future residential and non-residential development used in this study is based on the York Region 2031 Population and Employment Forecast. Forthe residential portion of theforecast, the total additional population that will result from the addition of new housing units is estimated. This "population in new units" determines the need for additional facilities and provides the foundation for the growth -related capital forecast. The non-residential portion of the forecast estimates the amount of building space to be developed in the Town over the planning periods. The forecast is based on the projected increase in employment levels and the anticipated amount of new building space required to accommodate it. 2. Service Categories and Historic Service Levels The DCA states that the increase in the need for service attributable to anticipated development: ... must not include an increase that would result in the level of service exceeding the average level of that service provided in the Town over the 10-year period immediately preceding the preparation of the background study ... (s. 5. (1) 4.) Historic ten-year average service levels thus form the basis for the development charges calculation. A review of the Town's capital service levels for buildings, land, vehicles, HEMSON -21- Special Council Agenda - Development Charges ITEM # " 15 May 6, 2009 13 equipment and others has therefore been prepared as a reference for the calculation so that the portion of future capital projects that may be included in the development charges can be determined. The historic service levels used in this study have been calculated based on the period from 1999 to 2008, For the engineered services of water and sewer services, historic service levels are less applicable and reference is made to the Town's engineering standards as well as Provincial health or environmental requirements. 3. Growth -Related Capital Forecast and Analysis of Net Capital Costs to Be Included in the Development Charges A growthaelated capital forecast has been prepared by Town staff as part of the study. The forecast identifies growth -related projects and their gross and net costs after allowing for capital grants, subsidies or other contributions as required by s.5.(2) of the DCA. The capital forecast provides another cornerstone upon which development charges are based. The DCA requires that the increase in the need for service attributable to the anticipated development may include an increase: ... only if the council of the Town has indicated that it intends to ensure that such an increase in need will be met. (s.5.(1)3.) S.5.(04. and s.5.(2). require that the development charges be calculated on the lesser of the historic ten-year average service levels or the service levels embodied in the future plans of the Town. The growth -related capital forecast prepared for this study ensures that development charges are only imposed to help pay for projects that have been or are intended to be purchased or built in order to accommodate future anticipated development. It is not sufficient in the calculation of development charges merely to have had the service in the past There must also be a demonstrated commitment to continue to emplace facilities or infrastructure in the future. In this regard, Ontario Regulation 82198, s.3 states that: For the purposes of paragraph 3 of subsection 5(1) of the Act, the council of a Town has indicated that it intends to ensure that an increase in the need for service will be met if the increase in serviceforms partof an official plan, capital forecast or similar expression of the intention of the council and the plan, forecaster similarexpression of the intention of the council has been approved by the council. For some projects in the growth -related capital forecast, a portion of the project may confer benefits to existing residents. As required by the DCA, s.5.0)6., these portions of projects and their associated net costs are the funding responsibility of the Town from non -development charges sources. The amount of financing for such non -growth shares of projects is also identified as part of the preparation of the growth -related capital forecast. HEMSON -22- Special Council Agenda - Development Charges ITEM # 1 - 16 May 6, 2009 14 There is also a requirement in the DCA to reduce the applicable development charges by the amount of any "uncommitted excess capacity' that is available for a service. Such capacity is available to partially meet the future servicing requirements. Adjustments are made in the analysis to meet this requirement of the DCA. Finally, when calculating development charges, the growth -related net capital costs must be reduced by ten per cent for all services except engineered and protection services (DCA, s.5.(1)8). The ten per cent discount is applied to the other services, e.g. Library Services and Parks and Recreation, and the resulting financing responsibility from non -development charges sources is identified. 4. Attribution to Types of Development The next step in the determination of development charges is the allocation of the growth -related net capital costs between the residential and the non-residential sectors. In the Town of Aurora, the allocation is based on the projected changes in population and employment over the planning periods, the anticipated demand for services and other relevant factors. The residential component of the development charges is applied to different housing types based on average occupancy factors. The non-residential component is applied on the basis of gross building space in square metres. 5. Final Adjustment The final determination of the development charges results from adjustments made to growth -related net capital costs for each service and sector resulting from a cash flow analysis that takes account of the timing ofprojects and receipt of development charges. Interest earnings or borrowing costs are thereforeaccounted for in the calculation as allowed under the DCA. HEMSON -23- Special Council Agenda - Development Charges May 6, 2009 ITEM# 1-1 15 III GROWTH FORECAST This section summarizes the growth forecasts used to calculate the development charges for the Town of Aurora. Appendix A contains additional material related to the growth forecast and the Town's demographics. The growth forecast used in this Development Charges Background Study is consistent with the York Region 2031 Population and Employment Forecast. The forecast is the main driver for direction for long-range planning and growth management in York Region. The forecast sets the overall growth forecasts to be used for planning and provides direction on how that growth is to be accommodated. A. RESIDENTIAL FORECAST IS FOR POPULATION GROWTH IN NEW UNITS OF 15,912 PERSONS BETWEEN 2009 AND 2018 The Growth Plan distinguishes household growth by type of unit (single -detached homes, semi-detached homes, row or town houses, and apartments). Over the planning periodfrom 2009 to 2018, the total number new residential units will increase by 5,922, which translates into a population in new units of 15,912. The population in new units was derived by using data from Statistics Canada analysing household sizes in recently constructed units. The ten-year planning period is used throughout the study for the general services offered by the Town. The York Region 2031 Population and Employment Forecast has projected 2031 to be build -out of the residentially designated lands. Growth over the period from 2009 to 2031 will see an additional 8,110 units, accommodating 21,489 persons. This build -out forecast of population in new units is used as the planning period for the engineered service of roads and related, water and sanitary sewerage. B. NON-RESIDENTIAL SPACE FORECAST IS GROWTH OF 458,00 SQUARE METRES OF ADDITIONAL GROSS FLOOR AREA BETWEEN 2009 AND 2010 The non-residential portion of the forecast estimates the amount of building space to be developed in the Town over the ten-year 2009-2018 and also the build -out period HEMSON -24- Special Council Agenda - Development Charges ITEM # 18 May 6, 2009 16 of 2009-2031. The forecast is based on the projected increase in employment levels and the anticipated amount of new building space required to accommodate them. The York Region 2031 Population and Employment Forecast projects employment levels to reach 34,700 employees by 2031, which translates into an additional 12,540 of employment growth. This additional employment growth can be accommodated by 649,010 square metres of additional gross floor area. For the ten-year planning period between 2009 and 2018,the Town will see a growth of approximately 8,850 new employees and roughly 458,050 square metres of new non-residential building floor area. Table 1 provides a summary of the residential and non-residential growth forecast used in this analysis. HEMSON -25- Special Council Agenda - Development Charges May 6, 2009 ITEM LO no 3 2 W 0 W ~ R' Z Q U K O W z °ti KO w W a o 0 W a 00 K 0 00 0 N N N n Q } ti M O N O O O N W U C N A O t LL U p M N W Q } 0 N O tO N N in N rn m in m fi c v m O C LL U 0 0 0 m M M G 0 N Y a N U W K O J L 5 0 z � t � W o o � � N v o x W z N N � 'o 0 x a m 0 n N N N V M V� Q } D_ M O N m 0 H o 0 N O W N O C u. U W O O N N O M Q � Y a 0 N m o o 0 0 � o N [O op w m � S LL U 0 O O c N 6 `m v Q E U W o � K O y J � 6 w C 2 w :o g to w K O m w z E T W o � n E o w z -26- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 20 N IV HISTORIC CAPITAL SERVICE LEVELS The DCA and O. Reg. 82198 require that the development charges be set at a level no higher than the average service level provided in the Town over the ten-year period immediately preceding the preparation of the background study, on a service -by -service basis. For non -engineered services (Library Board, Fire Department, etc.) the legislative requirement is met by documenting service levels for the preceding ten years— in this case, for the period from 1999 to 2008. Typically, service levels for non -engineered services are measured as a ratio of inputs per capita or inputs per population and employment. With engineered services such as roads, engineering standards are used in lieu of inputs per capita. O. Reg. 82/98 requires that when defining and determining historic service levels both the quantity and quality of service be taken into consideration. In most cases, the service levels are initially established in quantitative terms. For example, service levels for buildings are presented in terms of square feet per unit. The qualitative aspect is introduced by consideration of the monetary value of a facility or service. In the case of buildings, for example, the cost would be shown in terms of dollars per square foot to replace or construct a facility of the same quality. This approach helps to ensure that the growth -related capital facilities that are to be charged to new growth reflect not only the quantity (nutuber and size) but also the quality (value or cost) of services provided by the Town in the past. Both the quantitative and qualitative aspects of service levels used in the current analysis are based on information provided by Town staff. This information is generally based on historical records and the Town's and surrounding municipalities' experience with costs to acquire or construct similar facilities, equipment and infrastructure. Table 2 summarizes service levels for all services included in the development charges calculations. Appendix B provides detailed historical inventory data upon which the calculation of service levels is based for the general services. HEMSON 27- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 2� IM TABLE 2 TOWNOFAURORA HISTORIC AVERAGE SERVICE LEVEL BY SERVICE COMPONENT AVERAGE SERVICE SERVICE LEVEL LIBRARY $442.92 $ / capita -Buildings 0,78 sq. fit./capita -Land 0.08 ha/10,000 -Furniture and Equipment $30.49 $/capita -Materials $132.51 $/capita FIRE SERVICES $711.06 $ Poousehold - Buildings 1.27 sq ftihousehold . - Land 0.84 ha/ 10,000 households - Furniture and Equipment $46.98 $;household -Vehicles $117.13 $/household RECREATION $1,744.30 $ / capita - Major Facilities 5.42 sq, ft. / capita - Land 2.81 ha. 110,000 pop - Furniture and Equipment $432.87 $ /capita PARKS DEVELOPMENT $853.56 $/ capita - Park Development 64.24 ha. 110,000 pop - Park Facilities $432.87 $ / capita - Special Facilities $89.40 $1 capita PUBLIC WORKS $122.18 $ /population & employment - Buildings 0.39 sq. ft. /population & employment - Fleet $57.87 $/population & employment - Parking Lots $6.34 $ /population & employment HEMSON -28- Special Council Agenda - Development Charges ITEM # - 22 May 6, 2009 20 V GROWTH -RELATED CAPITAL FORECAST The DCA requires that the Council of a Town express its intent to provide future capital facilities at the level incorporated in the development charges calculation. As noted above in Section II, Ontario Regulation 82/98, s.3 states that: For the purposes of paragraph 3 of subsection 5 (1) of the Act, the council of a Town has indicated that it intends to ensure that an increase in the need for service will be met if the increase in service forms partof an official plan, capital forecast or similar expression of the intention of the council and the plan, forecast or similar expression of the intention of the council has been approved by the council. A. GROWTH -RELATED CAPITAL FORECAST IS PROVIDED FOR COUNCIL'S APPROVAL Based on the growth forecasts summarized in Section III and detailed in Appendix A, Town staff, in collaboration with the consultant, have developed a growth -related capital forecast which sets out those projects that are required to service anticipated growth. For all general and roads and related services, the capital plan covers the ten-year period from 2009 to 2018. As permitted by the DCA s.5(1)4., the development charge for the engineering services of roads, water and sewer services are based on a longer planning horizon. One of the recommendations contained in this background study is for Council to adopt the growth -related capital forecast developed for the purposes of the development charges calculation. It is assumed that future capital budgets and forecasts will continue to bring forward the capital projects presented here as they will be needed to service the anticipated growth in the Town. It is, however, acknowledged that changes to the forecast presented here may occur through the Town's normal capital budget process. B. THE GROWTH -RELATED CAPITAL FORECAST FOR GENERAL AND ROADS AND RELATED SERVICES A summary of the growth -related capital forecast for general services is presented in Table 3. The table shows that the gross cost of the Town's capital forecast is estimated to be $66.57 million. No upper -tier government grants are anticipated in the ten-year planning period. The Aurora Fire Department has shared service with the Town of Newmarket, $793,006 is anticipated to be received from Newmarket for their share of HEMSON -29- Special Council Agenda - Development Charges ITEM # May 6, 2009 21 the fire capital program. The balance of the capital program is brought forth for the development charges consideration. Of this $65.8 million net capital cost, nearly 43 per cent, or $28.4 million, is related to capital works for Recreation Services. This amount includes $13.2 million for the recovery of the Stronach Aurora Recreation Complex oversizing, and a $15.4 million provision for a new 50,000 sq ft recreation facility. The next largest capital program belongs to the Parks Department. The gross cost of the capital program is $13.4 million and includes a provision for 40 hectares a developed parkland and a 7,000 square foot expansion to the Parks Yard. The Town of Aurora is currently undertaking a Parks Master Plan. The capital program will be refined through the adoption of the master plan. The Library capital program identifies the need for an additional 20,000 square feet of library space. The all -in cost of the new library is $7.4 million. The Library will be undertaking a Library Master Plan in the next few years. The exact building program will be determined through this process. In addition, $2.1 million has been included in the library capital program for the acquisition of collection material. The Aurora and Newmarket Fire department offer a shared service. All Fire Stations and land are wholly owned by the municipality in which they are located. The cost of vehicles and equipment for these stations are shared. Aurora's current share is 39%. The gross cost of the Fire capital program is $5.8 million. This includes a new 8,500 square foot fife station, and a training facility, The fire station is fully funded by Aurora at a cost of $4.0 million, including building, land and furnishings. The training facility will be shared with Newmarket. The $500,000 included in the capital program represents Auroras share. In addition, the capital program includes Aurora's share of two new pumpers, a platoon chief vehicle and outfitting for 64 additional firefighters. The Public Works capital program includes a number of facility additions, expansions and replacements for a total cost of $7.3 million. The program provides for two new storage buildings, an expansion to Building "A" and the replacement and expansion of an existing snow storage building. In addition, the capital program includes a parking lot expansion in the amount of $310,000 and the provision for new growth related vehicles. HEMSON -30- Special Council Agenda - Development Charges ITEM # May 6, 2009 22 The capital forecast incorporates those projects identified to be related to growth anticipated in the next ten years. It is not implied that all of these costs are to be recovered from new development by way of development charges (see the following section VI). Portions of the capital forecast may be related to replacement of existing facilities, shares of projects that benefit the existing population, or growth anticipated to occur beyond the 2009-2018 planning period. In addition to these reductions, the amounts shown in Table 3 have not been reduced by ten per cent for various general services as required by s.5(1) of the DCA. After these reductions, the remaining growth -related capital costs are brought forward to the development charges calculation. Further details on the capital plans for each individual service category are available in Appendix B. C. THE GROWTH -RELATED CAPITAL FORECAST FOR WATER AND SEWER SERVICES Table 4 provides the Town -Wide growth- related capital recoveries for roads, water and sewer services. The Town -Wide capital program totals to $52.7 million and provides servicing for anticipated growth over the period 2009 to 2031. Approximately 7% percent of the program, or $3.9 million, is allocated to providing servicing capacity to prior growth and as replacement shares. The remaining $48,8 million is growth -related and has been included in the development charge calculation. Of the development charge recoverable share, $30.3 million (62 percent) is for the provision of roads and related services. Major road projects include the Vandorf Sideroad upgrades from Industrial Parkway to Leslie, and the East/West Collector . Intersection projects, sidewalk extensions, illumination, bikeways, maintenance strips and pedestrian crossings make up the remainder of the roads and related capital program. The provision of waterworks is the next largest engineered service component at $9.4 million (18 percent). The main projects for this service is the recovery for credit agreements on the Magna lands, and two watermains: St John's Sideroad from Bayview to Leslie; and Leslie from State Farm Way to St John's Sideroad. The balance of the engineered services growth -related capital program, $9.1 million, is for sanitary sewer projects. The two main sewer projects are in the Yonge Street South Area, and on St John's Sideroad starting at Mavrinic. HEMSON -31- Special Council Agenda - Development Charges May 6, 2009 ITEM # 9 - 25 23 Appendix C contains the details regarding the engineered services. HEMSON -32- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 26 N N N N N o C d 0 Q ] o M o M h 10N uo m O1 yarcma o� o � U w N w N � u � O m Z $ � a e o o LLs %9 dM � m ILL q N LL w N w N Q U r 9 d 0^ Qi O L O K e SO L N N N N N M N 0 W ya CSo n `n° o LL U w N w w N w N o mwsV N w N N ri C h vi o C o ry o�{ nry � v y N N w N U LL U E E E W w n N mod. �v sv z -33- Special Council Agenda - Development Charges ITEM # 9 - 27 May 6, 2069 25 VI PROPOSED DEVELOPMENT CHARGES ARE CALCULATED IN ACCORDANCE WITH THE DCA This section summarizes the calculation of development charges for each service category and the resulting total development charge by type of development. For all services, the calculation of the "unadjusted" per capita (residential) and per square metre (non-residential) charges is reviewed. Adjustments to these amounts resulting from a cash flow analysis that accounts for interest earnings and borrowing costs are also discussed. For residential development, an adjusted total per capita amount is applied to different housing types on the basis of average occupancy factors. For non-residential development, the calculated development charges rates are based on gross floor area (GFA) of building space. It is noted that the calculation of the development charges does not include any provision for exemptions required under the DCA, for example, the exemption for enlargements of up to 50 per cent on existing industrial buildings. Such legislated exemptions, or other exemptions which Council may choose to provide, will result in a loss of development charges revenue for the affected types of development. Any such revenue loss may not be offset, however, by increasing other portions of the calculated charge. A. DEVELOPMENT CHARGES CALCULATION A summary of the "unadjusted" residential and non-residential development charges for the Town -wide services is presented in Table 5. Further details of the calculation for each individual general and roads and related services are available in Appendix B. Town -Wide Services The capital forecast for general services incorporates those projects identified to be related to growth anticipated in the next ten years. However, not all of the capital costs are to be recovered from new development by way of development charges. Table 5 shows that $1.4 million of the capital forecast relates to replacement of existing capital HEMSON -34- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 2s N yy� RNN � o o M O N 2 q u N N N N N N N D�z"5n gg �uj N rc o N N L« u N N N N N Ez ry N 'q St,�YGO SM 4 N v N N 4 LLC N U O O O e V 4Fi� N N N � tli rcu, m o o e a` iY'oaN w N N h w » ZY vl yy Um Uy U�y UN Uv¢i Utn Uh na as nu an na `" ua an Tp d @ UU UU OU b G N UU 2 UU UU UU s a$ E E n o E n Yr E E a o 0 o o a >1 ">3� 3gg dv tt FK 33 « Yv u FF YY tyiY uYl 'a_' 1b'a h' 9V41 N N^ ) N aN e IJ M o V e Yi $ F -35- Special Council Agenda - Development Charges ITEM # " 29 May 6, 2009 27 facilities or to shares of projects that provide benefit to the existing community. These portions of capital costs would have to be funded from fundraising, property taxes and other non -development charges revenue sources. An additional share of $5.5 million has been identified as prior growth and represents the revenues collected from previous development charges. This portion has been netted out of the chargeable capital costs. Another share of the forecast, $3.4 million, is either attributable to growth beyond the 2018 period (and can therefore only be recovered under future development charges studies) or represents a service level increase in the Town. The DCA, s.5(1)8, requires that growth -related net capital costs for "soft" services be reduced by 10 per cent in calculating the applicable development charges for these services. The 10 per cent share of growth -related net capital costs not included in the development charges calculations must be funded from non -development charges sources. In total, about $5.3 million is identified as the required 10 per cent reduction. The remaining $50.2 million is carried forward to the development charges calculation as a growth -related cost. Of the growth -related cost, $47.8 million has been allocated to new residential development, and $2.4 million has been allocated to new non-residential development. This results in a charge of $3,004.48 per capita and $5.20 per square metre for the provision of general services. 2. Engineered Services Table 6 displays the residential and non-residential development charges for sanitary sewerage, water and roads and related services. The sanitary sewerage program is comprised mainly of the sanitary sewer upgrades and amounts to $9.1 million. Of the growth -related cost, 65 percent, or $5.9 million, has been allocated to new residential development and 35 percent, or $3.2 million, has been allocated to new non-residential development. The unadjusted residential charge per capita for the provision of sanitary sewerage services is $274.39 per capita and $4.89 per square metre of gross floor area. Also displayed on Table 6 is the growth -related capital forecast for water services in the Town of Aurora from 2009 to 2031. The net cost of the capital program amounts to $9.4 million. The capital program is attributed 65 percent, or $6.1 million, is allocated to benefit the future residential population and 35 percent, or $3.3 million, is allocated to non-residential development. The resulting per capita charge is $283.61 for water services and $5.06 per square metre for the non-residential charge. Finally, the net cost of the roads and related capital program amounts to $34.3 million, of which $4.0 million is deducted from the development charges calculation as this HEMSON -36- Special Council Agenda - Development Charges May m 2009 ITEM # 1 3 ■ || } _ §! 22 { . !! | EE ! f! � \ 9 / / 7 7 2 " © / Special, Council Agenda - Development Charges ITEM # 1 - 31 May 6, 2009 29 share is deemed to benefit the existing population. The remaining amount, $30.3 million, is apportioned 65 percent to residential growth and 35 percent to non- residential growth. The resulting charge is $916.92 per capita and $16.35 per square metre for roads and related services. The full details for engineered services can be found in Appendix C. 3. Adjusted Residential and Non -Residential Development Charge Rates Final adjustments to the "unadjusted" development charges rates are made through a cash flow analysis. The details are included in Appendix B for general services and Appendices C for roads and related, water and sewer services, considers the borrowing cost and interest earnings associated with the timing of expenditures and development charges receipts for each service category. Table 7 summarizes the results of the cash flow adjustments for the residential development charges rates. The adjusted per capita rate increases by approximately $135.00 from $4,775.69 per capita to $4,914.00 per capita after the cash flow analysis for the Town -wide uniform charge. Table 7 also provides the calculated rates by residential unit with the total charge per unit ranging from a high of $16,216 per unit for a fully serviced single- and semi-detached unit to a low of $7,371 for a fully serviced bachelor or one bedroom apartment unit. The non-residential Town -wide uniform charge also experiences an increase after cash flow considerations from $31.50 to $32.11 per square metre. This is displayed on Table 8. HEMSON -38- Special Council Agenda . Development Charges May m 2009 ITEM # «'� \f0 } () \ ( \ \ } \ \ \ \ \ f)k §r� m m 2 / (} G m ®®\ G G / \ \ ] Q & \<f ) § 3, ®/ ®, - ®IN & _ .43 G §IN M ± § 0 \ ! \! g k�§ \�d § § m 2 >am La d § w w LU \ / \ m § k m § n 5 2 ° k 2 / k \ < # ! d§ � j k X IM k \§ A 2 § n 0,!» 2) @ a m e � -39- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 3 M W IL w k �r �z 4� U p� z Vl W W aQ O= w wiz -j ❑ W 0. zW n ❑ F J 0 O z > z �w y 5 K to z O z N u O o m o IL o 0 0 0 0 o e e o 0 0 0 00 r L � z � Zuw W z 0' W W w W 2 >� C1 m z K W z w y> W O $ Q W ❑ H W z ~ ¢ z z d d w w >O ( w ww >- y 0 W W- z Y C7 K a❑ z LU f7 0 U O p J' ❑ a z J Q U w W J a z K W m I- Q �i H F U K Ob Q CO v ) 000LL W iL d 0) K 3 N N -40- Special Council Agenda - Development Charges ITEM # May 6, 2009 32 B. COMPARISON OF 2009 NEWLY CALCULATED DEVELOPMENT CHARGES WITH CHARGES CURRENTLY IN FORCE IN AURORA Tables 9 and 10 present a comparison of the newly calculated residential and non-residential development charges with currently imposed development charge rates. It demonstrates that the residential development charge rate for a single- or semi-detached unit increases by $4,558 per unit, or 39 percent. The current development charges rate for non-residential development increases by $3.49 per square metre, or 12 per cent. Overall, the development charges rates are increasing in Aurora. These increases are a result of the following: • Higher construction costs; • Proposed full recovery of growth -related capital costs for all services; and • Increased service levels in recent years. HEMSON -41- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 35 06 .0 e r OOi (O N 00 (^p tWC E n W M o M N Cl V d (D O M M a. v c c - m m U � C U a' W a � d c LO ,p 00 m m J K F Q ZLLJ c Q O 6 Z (" _ = a U Ih M Ih M f� N — O -D M T O p) N F ; U Q W Z N J w O lq U F z m 3 W a K w (/) J 0 F W N Y ❑ Z �i W J O ❑ N aF- z W W K W Q Q ? LL j N N Y W W l'J O (7 W Z O 0O O J Z= a Q W J Q W -j �- W Q Fa- a N W }a- U j W'qN R Y _7 O 0 Q QF z 0 U WaaW a m F U)m LL CO a aOmi -42- Special Council Agenda - Development Charges May 6, 2009 ' ITEM # 1 - 36 V (h C a o o o o 6 � � N u 06 r� d _ Q C5 6 ti> 19 U � a w w a0 i N Q. U V E9 fiT 6N9 /N yj 16 Vi a � e x U 2 F R'- v o » r <t � V O w ao W two N V o to fA ds J LL 4. U ¢ z m .0 0 V ~ LU 3 > F w z m W F w Q W U J U m K V) N Q 2 fwQQp N K W' Ci W z t z W w w w w w g¢¢ z z a > N Y w K z CW7 z p W z 0 -� a W J o z ¢Z xQ a UW a NK w U °0w4 F- F W m K w O ¢ w D ~O y 0 =i LL K a a =3 y Q 0) W F- -43- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 37 35 VII LONG-TERM CAPITAL AND OPERATING COSTS This section provides a brief examination of the long-term capital and operating costs for the capital facilities and infrastructure to be included in the development charges by-law. This examination is required as one of the features of the DCA. A. NET OPERATING COSTS FOR THE TOWN SERVICES TO INCREASE OVER THE FORECAST PERIOD Table 11 summarizes the estimated increase in net operating costs that the Town will experience for additions associated with the planned capital program. The estimated changes in net operating costs are based on the financial information from the Town (additional details are included in Appendix E). As shown in Table 11, by 2018 the Town's net operating costs are estimated to increase by about $4.8 million. The most significant portion of this increase relates to the construction of the new fire hall and library. Additional recreation facilities and roads projects are projected to impact on the annual operating budget. The balance of the capital program will marginally result in additional infrastructure -induced operating budget impacts. R. LONG-TERM CAPITAL FINANCING FROM NON -DEVELOPMENT CHARGES SOURCES TOTALS $6.7 MILLION Table 13 also summarizes the components of the growth -related capital forecast that will require funding from non -development charges sources. Of the $65.8 million net capital forecast (property tax -supported services), about $6.7 million will need to be financed from non -development charges sources over the next 10 years. This includes about $5.3 million in respect of the 10 percent discount required by the DCA for "soft" services and about $1.4 million for shares of projects related to capital replacement. In addition, $3.4 million in interim financing may be required for projects related to general service level increases and to growth in the post-2018 period. It is likely that most of these monies could be recovered from future development charges as the by-laws are revisited at least every five years. HEMSON -44- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 38 MW F ry Ino e v ry� h N mo ri vi N N m ri N n m N O OOO o n n w in o �n rNi O �<NhMNy ry�ry m WVwl9 N°� M ryN O N� M W t9 NN ON N OINVV No N V OV' a0} N' ld e7 of yym��ryry'r �+ N N e- N Vl � W M N N tl1 on n nmoa o o n - N O O O o o on n ammro No N m H N V ONNwO N O ryryio O O N nN�W NV) ONI°� tll0 Vl V N O OOOOONO °� mW<l�` NO'O fJ b NNUI N � MNVOIN�fVOm 'uN MN N yN�K O OOO�O{NN �` m�0� el0 N( 0 NigNNNf+ 9 O 00 oppt� R v,no.; oo. o NN��VVjNh O NM V ;ryryj �NNM �l NO N p N �� NNN N YI N N' M 0 O TKO b3N mW W{V{pp'W �j W O N M NN N_ W m m � � U m U = U f' S❑� O -• S Re. c o cE =°a Fm Fo UYnNo 'O NA O F*6 6` S Z U E� 0 U'v , O c 0 U IJ U O N ❑ �zv 2 v a n o z 'w ° 0 z O��-z 8 a Z OA, ca LL'w a`LL 'ate u �0 -45- Special Council Agenda - Development Charges ITEM # 1 ' 39 May 6, 2009 37 VIII OTHER ISSUES AND CONSIDERATIONS A. ..DEVELOPMENT CHARGES ADMINISTRATION Many of the administrative requirements of the DCA will be similar to those presently followed by the Town in terms of collection practices. However, changes will likely be required in the use of and reporting on the new development charges. In this regard: • It is recommended that the present practices regarding collection of development charges and by-law administration continue to the extent possible; • As required under the DCA, the Town should codify any rules regarding application of the by-laws and any 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 DCA, 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. R. LOCAL SERVICE DEFINITIONS The following provides the definition of "local service" under the DCA for a number of services provided by the Town of Aurora. The purpose in establishing these definitions is to determine the eligible capital costs for inclusion in the development HEMSON -46- Special Council Agenda - Development Charges /TEM # 9 " 40 May 6, 2009 0 charges calculation for the Town. The functions or services deemed to be local in nature are not to be included in the determination of the development charges rates. The provision of local services is considered to be a direct developer responsibility under 8.59 of the DCA and will (or may) be recovered under other agreement(s) with the landowner or developer. The issue of "local service" is being specifically considered for the services of: • Roads • Stormwater Management (SWM) Facilities • Water and Sewer • Parkland Development 1. Roads and Related • Local Roads: • All roads and share of roads identified as local are to be treated as a local service under the DCA and the associated costs are not to be included in the development charges calculation. • Road Oversizing: • If a local road is oversized to accommodate additional traffic needs external to the subject lands, the oversized share of the roads is to be included in the development charges calculation. • Traffic Signals and Intersection Improvements • Intersections with Regional Roads, Regional Responsibility; • Intersection improvements and signalization on other roads due to development and growth -related traffic increases - included in DC calculation • Streetlights • Streetlights on Regional Roads - included in Town DC or, in exceptional circumstances, may be direct developer responsibility through local service provisions (s.59 of DCA); • Streetlights on Area Municipal Roads - linked to collector road funding source. HEMSON -47- Special Council Agenda - Development Charges ITEM # 1 - 41 May 6, 2009 0 • Sidewalks • Sidewalks on Regional Roads - included in Town DC or, in exceptional circumstances, may be direct developer responsibility through local service provisions (s.59 of DCA); • Sidewalks on Area Municipal Roads - linked to road funding source; • Other Sidewalks External to Development but related to the subject lands - direct developer responsibility as a local service provision (s.59 of DCA). • Bikeways • Bike lanes within road allowance - included in DC roads costs; • Bike lanes outside road allowance - included in DC roads costs. • Noise Abatement Measures • Internal to development- direct developer responsibility through local service provisions (s.59 of DCA). • Street Tree Planting • Street tree planting is considered a local area service and a direct responsibility of the developer • Land Acquisition for Road Allowances • Land acquisition arterial road - dedication under the Planning Act subdivision provisions (s.51) through development lands; in areas with limited or no development include in Regional DC (to the extent eligible); • Land acquisition for collector roads - dedication under the Planning Act subdivision provisions (s.51) through development lands (up to 26 metres right of way); in areas with limited or no development include in Town DC (to the extent eligible); • Land acquisition for grade separations (beyond normal dedication requirements) - to be included in Town DC to the extent eligible. HEMSON -48- Special Council Agenda - Development Charges ITEM # 1 " 42 May 6, 2009 40 2. Stormwater Management (SWM) Facilities The costs of stormwater management facilities internal to a subdivision and related to a plan of a subdivision are considered to be a local service under the DCA and the associated costs are not included in the development charges calculation. Local SW M facilities would typically include: • Stormwater management facilities servicing local drainage areas; • Storm sewer oversizing associated with local drainage areas; and • Storm sewer works on existing roads. A municipality may recover these costs as a direct developer contribution (or by way of service provision) or alternatively may fund these works directly and recoup the costs through the assessment of a local charge against each unit or land area (holding) within the defined befitting area, based on proportionate shares. This may be facilitated by the Municipal Draining Act or applicable legislation. 3. Water and Sewer • Major external trunk watermains, sewers and major pumping stations are to be included within the development charges. Oversizing within subdivisions will also be included in the development charges. • Connections to trunk mains and minor pumping stations to service specific areas are to be a direct developer responsibility as a local service provision (s.59 of DCA). Minor pumping stations are those that service a single subdivision, or adjacent or adjoining subdivisions. 4. Parkland Development For the purpose of parkland development, local services include the requirement for the owner to undertake preparation of the park plan, retaining necessary consultants to prepare design and grading plans for the park, prior to development. In addition, the owner is required to provide stripping and stockpiling, levelling, top soiling, seeding and Stormwater servicing including all appurtenances (consistent with the plan), fencing the property perimeter, and provide municipal water and waste water services to the lot line. These requirements are part of the conditions of s.51 and 53 of the Planning Act agreements. The municipality also requires the owner to dedicate parkland or provide cash -in -lieu, consistent with the Planning Act provisions. All of these costs are deemed a direct responsibility of the developer and have not been included in the development charges calculation. With respect to other parkland development costs, the municipality has included all other components of parkland development in the development charges calculation, HEMSON -49- Special Council Agenda - Development Charges ITEM # 9 - 43 May 6, 2009 41 including parking, parkfurniture, signage, landscaping and walkways/traits, in addition to the necessary fields, diamonds, playground equipment, lighting, irrigation and field houses. HEMSON - 50 - Special Council Agenda - Development Charges ITEM # 1 - 44 May 6, 2009 42 APPENDIX A TOWN OF AURORA 2009 DEVELOPMENT CHARGES STUDY GROWTH FORECAST This appendix provides the details of the growth forecast that was used to prepare the Development Charges Background Study for the Town of Aurora. The forecast is based on the reports and documents prepared as part of the Region's ongoing Official Plan Update. The Region is undertaking the Official Plan Update in order to be in compliance with the Province's Places to Grow Act. The following specific document have been reference: York Region 2031 Population and Employment Forecasts, Regional Municipality of York Planning and Economic Development Committee, January 7, 2009 York Region 2031 Land Budget, York Region Planning and Development Services, January 2009 The results of the forecasts are provided in a series of tables that follows. A. FORECAST APPROACH AND KEY ASSUMPTIONS The Development Charges Act (DCA) requires the Town to estimate "the anticipated. amount, type and location of development" for which development charges may be imposed. The growth forecast must cover both residential and non-residential development and be specific enough with regards to quantum, type, location and timing of development to allow the Town to prepare a reasonable growth -related capital program. A ten-year growth forecast, from mid -year 2009 to mid -year 2018, has been used to calculate the development charges for the general services in the Town. For the engineered services of roads and related works, water, and wastewater, a long-range forecast from mid -year 2009 to mid -year 2031 has been used. The development charges growth forecast is based on estimates of growth occurring within the Town's approved development areas. This is consistent with Provincial regulations that require development charges forecasts to be based on development areas approved in a municipality's official plan. HEMSON -51- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - a5 43 The growth forecasts for this study have been prepared during the onset of a global economic slowdown which has affected both the Canadian and the Town's economies. Although it is currently very difficult to predict the long-term effects of the slowdown, it is anticipated that the Town's housing market and employment prospects will not he materially affected over the course of the ten-year and long-range planning periods. In short, notwithstanding a short-term slowdown, a key assumption in the development charge forecasts is that the Town's long-term growth outlook will not be affected by the current economic slowdown. As such, a short-term adjustment to the Region's forecast has been made, it has been assumed that the Town may not achieve the 2011 population, housing, and employment targets set by the Region but will achieve the 2016 targets. The impact of this change is for slower growth from 2009 to 2011 and marginally higher growth over the 2011-2016 then would have been released under the Regional forecast. Development charges for all services are based on the Town -wide forecasts shown below. Development charges are levied on residential development as a charge per new unit and on non-residential development as a charge per unit of gross floor area (OFA). For the residential portion of the forecast, the total additional population that will result from the addition of new housing units is estimated. This "population in new units" determines the need for additional facilities and provides the foundation for the growth -related capital program. For the non-residential sector, the key driver for the need for new infrastructure is employment growth. A "census -based" definition of population is used for the purposes of the development charges study. This definition does not include the census undercount which is typically included in the definition of"total" population. Population figures shown in the growth forecast: represent mid -year estimates. B. TOWN OF AURORA FORECAST METHOD The population and household forecast for the Town is based on analysis and studies currently being undertaken as part of the Region's Official Plan Update, as noted above. HEMSON -52- Special Council Agenda - Development Charges ITEM # 1 - 46 May 6, 2009 44 Based upon the method, inputs and assumptions discussed above, forecasts of population, housing, employment and non-residential floor space were prepared. The results are presented in the following tables: Table A.1 Historic population, households and employment from 1991 to 2006. Table A.2 Historic annual housing completions from 1994 to 2007. Table A.3 Historic average household size by unit type. Table A.4 Forecast results for the development charges planning period from 2009 to 2031. This table also presents the forecast growth in new housing units which forms the basis of the growth -related capital programs. Table A.5 Summary of forecast population, household and population in new household growth for the periods from 2009 to 2018 and from 2009 to 2031. Table A.6 Net change and total employment and non-residential gross floor space growth for the periods from 2009 to 2018 and from 2009 to 2031. Table 1, on the following page, provides a summary of the growth forecast. HEMSON -53- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 47 45 TABLE 1 TOWN OF AURORA SUMMARY OF RESIDENTIAL is NON-RESIDENTIAL DEVELOPMENT FORECAST RESIDENTIAL FORECAST Existing 2009-2016 2009-2031 As At Forecast Asat Forecast at Mid -Year 2008 Change Mid -Year 2018 Change Mld-AS Year2031 Households 16,390 5,922 22,312 8,110 24,500 Population Census 51,300 13,960 65,260 16,400 67,700 With Undercount 53,350 14,520 67,870 17,050 70,400 In New Households 16,912 21,489 NON-RESIDENTIAL FORECAST Existing 2009-2018 2009-2031 As At Forecast As at Forecast As at Mid -Year 2008 Change Mid -Year 2018 Change Mid -Year 2031 Employment 22,160 6.850 31,010 12,540 34,700 Non-Residentlal Building Space(sq.m.) 458,050 649,010 HEMSON - 54 - Special Council Agenda . Development Charges May m 2009 ITEM # 1 IN | m§BNKmem!§■n� § . ! k!¥yaRR#wa!\Q§a#! ] .e m 10 ; ! / : 24 ) r ,,we:,m, §■:e!§;§B { Special Council Agenda - Development Charges ITEM # 1 - 49 May 6, 2009 _ M N� ✓i N� V _ IMD � N N N O F 1n O m VI N 1q YI � OM Om O m� N a lNi) h 0M N n m N m a OMI i a n N N N N C6 N N o 10 h N uN� N N V Y p Opi m �y O C U m y x N m 0 ry a" N C W U' y O N 4l 4 tl O y O � 6 N 6 r� vl d tq L R vl 2 i/1 N h N iq a v) IP y i 0 0 0 .. a� m 1 y N N v y N m N N m rmi� vm. n N n C umi m_ H N S Z S N S S ]: lit S 2 2 K S i S Q 2 S S 4 S 2 2 41 -56- z 0 W x Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 50 O N m b N 6 Z 2 m m Nm V m.F N b m m N N OI b M O r O. m� V N m m m m "� Y m O i� b O O M m In ryVry ry�ry W {b{ryry F t O N M1 t` N m 10 Vy1 y� N NO OI OI b OI O) W Ol q Ol tOlo � � A ry N b � c a o 0 0 0 0 0 0 0 0 0 0 0 0 0 o a o 0 0 0 0 O N N 41 b �I m V b m m M1 N M1 M1 h h N 'NG W N N b m m OV1 N N m 10 N N 10 b Imo ID m b m 1M10 IM1O b F L c o 0 0 0 o m 6 � O a � m ti m d mmo.-Ic ma�bt�mmo {ymv'nbM1mmo 000 h N N N N N N N N N N N N N N N N N N N N N N N N „gee;oeoge N 'yn rn V N V m n M 'll m m. 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Nti r.eoe� N al v H m f H �rMMmmm �o �o `o Nry NNN � ni H E O O m O. 0 0 0 0 0 0 0 0 0 P 0 0 0 0 ... 0 W Ol N MO voi M O n e'i VI l0 W O O N O O O O M a N m K H 15'0^ m N N W N N n f' m m m m m$ A m m n VI O N N M En W E O 0 0 p O f� o M pJ M N d N M W p V O VNI vMl O O O O O m N o h 0 N OI ��-1 O V N N N N M m m m m R H M V H V � m £ �E � � � � � � � m m LX ✓r m m �iX m m M� - � � m N� 1mO W o N 9 Ol V V V M VI lD O N1 t0 O d O d' V C N N N O .S q A_M M N M m tryil M N N N N N a a ryOj H N N W N N N O H N N N y o 0 N N 0 ry ry o a o o 0 a o o N o 0 N ry N N N N N N N N N N N N N N N p o s O p p O p O O O O O O pp O o pp O pp O O O O O Q o I/Ot W pO1 N O O W N T T 100 b N 10 N N N (�`1 N �N-I eNt N N N N O � a v o � W i O H N T V v� O-1 N� m N N N m V Vl 1O bl N O H N N N N N g g Y "I N N N o O o o O p O O o 0 0 o O o 0 0 0 0 0 o O O O q N N N N N N N N N N N N N N N N N N N N N g -59- Special Council Agenda - Development Charges ITEM # " May 65 2009 51 APPENDIX B GENERAL SERVICES TECHNICAL APPENDIX HEMSON - 60 - Special Council Agenda - Development Charges ITEM # " 2 May 6, 2009 52 APPENDIX B GENERAL SERVICES TECHNICAL APPENDIX INTRODUCTION AND OVERVIEW This appendix provides the detailed analysis undertaken to establish the development charges rates for each of the services in the Town of Aurora. The appendix is divided into six sub -sections, with one section for each of the following services: B.1 General Government B.2 Library Board B.3 Fire Department B.4 Recreation B.S Parks B.6 Public Works Every sub -section, with the exception of General Government, contains a set of three tables. The tables provide the background data and analysis undertaken to arrive at the calculated development charges rates for that particular service. An overview of the content and purpose of each of the tables is provided below. TABLE 1 HISTORIC SERVICE LEVELS Table 1 presents the data used to determine the ten-year historic service level. The Development Charges Act (DCA) and Ontario Regulation 82/98 (0. Reg. 82(98) require that development charges be set at a level no higher than the average service level provided in the Town over the ten-year period immediately preceding the preparation of the background study, on a service by service basis. For the purpose of this study, the historic inventory period has been defined as 1999 to 2008. O. Reg. 82/98 requires that when defining and determining historic service levels both the quantity and quality of service be taken into consideration. In most cases, the service levels are initially established in quantitative terms. For example, service levels for buildings are presented in terms of square feet per unit. The qualitative aspect is introduced by considering the monetary value of the facility or service. In the case of buildings, for example, the cost would be shown in terms of dollars per square foot to replace or construct a facility of the same quality. This approach helps to ensure that the growth -related capital facilities that are to be charged to new growth reflect not only the quantity (number and size) but also the quality (value or cost) of service provided HEMSON -67- Special Council Agenda - Development Charges ITEM # May 6, 2009 53 by the Town in the past. Both the quantitative and qualitative aspects of service levels used in the current analysis are based on information provided by Town staff. This information is generally based on historic records and experience with costs to acquire or construct similar facilities, equipment and infrastructure. The final page of Table 1 shows the calculation of the "maximum allowable", net of uncommitted excess capacity. The maximum allowable is defined as the ten-year historic service level (expressed as either $/capita or $/population and employment) multiplied by the forecast increase in population in new units or population in new units and employment over the planning period. The resulting figure is the value of capital infrastructure that must be constructed for that particular service so that the ten- year historic service level is maintained. There is also a requirement in the DCA to consider "excess capacity" within the Town's existing infrastructure that may be available to partially meet the future servicing requirements. If Council has expressed its intent, before or at the time the capacity was created, to recoup the cost of providing the capacity from new development, it is considered "committed excess capacity" under the DCA and the associated capital is eligible for recovery. Should uncommitted excess capacity exist, it will be determined whether or not this capacity will be available to service new development and, if so, appropriate adjustments will be made to the calculations. TABLE 2 2009-2018 PROVISIONAL CIIOWTH•RELATED CAPITAL BUDGET The DCA requires the council of a Town to express its intent to provide future capital facilities at the level incorporated in the development charges calculation. Based on the growth forecasts presented in Appendix A, Town staff in collaboration with the consultant have developed a growth -related capital forecast which sets out those projects that are required to service anticipated growth for the ten-year period from 2009 to 2018. The growth -related capital forecasts for each service are shown in Table 2 of each sub -section, and Table 1 for General Government. To determine the growth -related share of the program, the project costs are reduced by any "prior growth" and "replacement" or "benefit to existing" shares. A prior growth share relates to a portion of a facility that is being constructed to alleviate an existing deficiency and to service growth that has already occurred. Reserve funds available to fund the prior growth share are shown in Appendix D. HEMSON -62- Special Council Agenda - Development Charges ITEM # " 4 May 6, 2009 54 A replacement share occurs when a new facility will in part service a facility that is demolished, redeployed or will otherwise not be available to serve its former function. A benefit to existing share represents that portion of a capital project that will benefit existing development. The replacement and benefit to existing shares of the capital program are not deemed to be growth -related and are therefore removed from the development charges calculation. The capital program less any prior growth and replacement or benefit to existing shares yields the net growth -related program. Although deemed growth -related, not all of the net growth -related capital program tray be recoverable from development charges in the period from 2009 to 2018. For some of the services, a portion of the capital program will service growth that will not occur until after 2018. This portion of the capital program is either deemed "pre -built" service capacity to be considered as committed excess capacity to be recovered under future development charges or represents afuture service level increase. The capital costs associated with pre -built service capacity and future service level increases are removed from the capital program to produce the growth -related capital program for the period from 2009 to 2018. In all cases, as required, this amount is equal to or is less than the maximum allowable as calculated on the final page of Table 1. Finally, when calculating development charges, the growth -related net capital costs must be reduced by ten per cent for all services except fire, police and engineered services (I)CA, s.5. (1)8.). The result is the discounted growth -related net capital costs that are eligible for recovery against growth over the period from 2009 to 2018. Calculation of the Unadjusted Development Charges Rates The section below the capital program displays the calculation of the unadjusted development charges rates. The term "unadjusted" development charges is used to distinguish the charge that is calculated prior to cash flow financing consideration. The cash flow analysis is shown in Table 3. The first step when determining the unadjusted development charges rates is to allocate the growth -related net capital costs between the residential and the non-residential sectors. For all services, except Library Board, Recreation and Parks, the growth -related costs have been determined to be 65 per cent residential and 35 per cent non- residential. This ratio is based on projected changes in population in new households HBMSON -63- Special Council Agenda - Development Charges ITEM # 1 - 5 May 6, 2009 55 and employment over the planning period, anticipated demand for services, and other considerations. The growth -related costs associated with the Library Board, Recreation, and Parks have been aflocated 100 per cent to residential growth because the need for these services is driven entirely by residential development. The residential growth -related costs are then divided by the forecast population growth in new housing units. This gives the unadjusted residential development charge per capita. The non-residential growth -related costs are divided by the forecast increase in non-residential gross floor area (GFA). This yields a charge per square metre of new non-residential GFA. TABLE 3 CASH FLOW ANALYSIS A cash flow analysis is also undertaken to account.for the timing of projects and receipt of development charges. Interest earnings or borrowing costs are, therefore, accounted for in the calculation as allowed under the DCA. Based on the growth forecast, the analysis calculates the development charges rate that is required to finance the net growth -related capital spending plan including provisions for any borrowing costs or interest earnings on the reserve funds. The cash flow analysis is designed so that the closing cash balance at the end of the planning period is as close to nil as possible. In order to determine appropriate development charges rates reflecting borrowing and earnings necessary to support the net growth -related funding requirement, assumptions are used for the inflation rate and interest rate. An inflation rate of 2.0 per cent is used for the funding requirements, an interest rate of 3.5 per cent is used for positive opening balances, and a rate of 5.5 per cent is used for negative opening balances. Table 3 displays the results of the cash flow analysis and provides the adjusted or final per capita residential and per square metre (of GFA) non-residential development charges. HEMSON -64- Special Council Agenda- Development Charges 1TE'M # 1 - 6 May 6, 2009 56 0.1 GENERAL GOVERNMENT When calculating development charges, the DCA allows for the inclusion of the costs of undertaking studies related to the provision of growth -related infrastructure, including development charges background studies. Table 1 provides a list of growth - related studies the Town of Aurora anticipates undertaking during the 2009-2018 planning period. As required under the DCA, development charges studies must be undertaken every five years, thus, two studies are included in the list. The total estimated cost of all studies is $2.1 million and is identified as growth -related for the 2009-2018 period. The current balance of the General Government reserve fund statement is in a negative position due to growth -related studies undertaken over several years. The recovery for this reserve fund shortfall is displayed in the opening balance of the residential and non-residential cash -flow analysis. The growth -related cost is allocated 65 per cent, or $1,228,500, against new residential development, and 35 per cent, or $661,500, against non-residential development. This yields an unadjusted development charge of $77.21 per capita and $1.44 per square metre. The cash -flow analysis is displayed in Table 2. It considers timing of the development charges revenues to determine the adjusted calculated rates. The residential cash flow (page 1) calculates a $98 charge per capita which is higher than the unadjusted charge previously calculated. The non-residential cash flow (page 2) also results in a higher charge of $1.81 per square metre. The following table summarizes the calculation of the General Government development charge, GENERAL GOVERNMENT SUMMARY 2009-2018 Unadjusted Adjusted Growth -Related Capital Program Development Charge Development Charge Total Net DC Recoverable $/capita $/sq.m $/capita $/sq.m $2,100,000 $1,890,000 $77.21 $1.44 $98.00 $1.81 HEMSON 65 - Special Council Agenda - De_lopm_■c ass May «2o ITEM ® !!; ge §�� ...,.,...., . /(} . . .....,..... . \\\\\ Qg;gQ; i\\\ : � § § ; ...... �. § � ) -66- Special Council Agenda - De_&Pm_tCharges May « 2009 .. ITEM # �-8 § \ ;\/\;»// . Special Council Agenda - De_lopm_■Charges May % 2009 ITEM ■ ® |\ §®`®J [/ .! W | r ((\{d6 § §§\!/ / r;0 )(§§!)})!}{§]§ 9F-T-M / O � Special Council Agenda - Development Charges ITEM # May 6, 2009 60 B.2 LIBRARY BOARD The Aurora Public Library provides library services from its central branch at 15145 Yonge Street. The branch offers an array ofcollections materials reserve its community. TABLE 1 HISTORIC SERVICE LEVELS Table 1 displays the Library Board ten-year historic inventory for buildings, land, materials, and furniture and equipment (excluding computer equipment). The building space amounts to 39,056 square feet, valued at over $11.7 million. The library building occupies approximately 0.42 hectares of land worth approximately $2.5 million. The materials found at all library branch are valued at $6.7 million and the furniture and equipment associated with the branch are valued at $1.8 million. The 2008 full replacement value of the inventory of capital assets for the Library Board amounts to $22.7 million and the ten-year historic average service level is $442.92 per capita. The historic service level, multiplied by the ten-year forecast growth in population in new units, results in a ten-year maximum allowable funding envelope of $7,047,700. There is no excess capacity in Library Board and thus, the full amount of the funding envelope is brought forward to the development charges calculation. TABLE 2 2009-2018 PROVISIONAL GROWTH -RELATED CAPITAL BUDGET AND THE CALCULATION OF THE DEVELOPMENT CHARGE The Library Board will soon be undertaking a Master Plan Study to determine their facility needs in the future. To maintain service levels, additional library space will be required. At this point it is unclear whether the additional library space will be accommodated through an expansion to the current library, or whether a new location will be selected for the construction of a second library. The capital program has been based on the assumption that a 20,000 square foot library will be constructed. The cost of construction is estimated at $6 million. A provision for 0.42 hectares of land has been included at a value of $500,000, and furnishings in the amount of $940,000. The remainder of the Library Services capital program includes a provision of $2.1 million to cover the cost of materials acquisitions over the ten-year planning period. Altogether, the ten-year capital forecast for the Library Board amounts to $9.5 million. A prior growth share of $1.4 million has been identified as development charges previously collected for this service and has been netted off of the development charges calculation. A portion of the capital program, $1.1 million, has been deemed as a HEMSON - 69 - Special Council Agenda - Development Charges ITEM # May 6, 2009 61 post -period benefit. These shares will not be recovered under these development charges, but are eligible in the next Development Charges Background Study. The 2009-2018 growth -related capital cost amounts to. $7,047,700 which is then reduced by legislated 10 per cent discount, yielding a discounted growth -related net capital cost of $6,342,930. The entire growth -related net capital cost of $6,342,930 for the Library Board is allocated against residential development in the Town of Aurora. This results in an unadjusted development charge of $398.63 per capita. TABLE 3 CASH PLOW ANALYSIS After cash flow consideration, the residential calculated charge increases to $403 per capita. This is a reflection of the timing of the capital program and development charges revenues. The following table summarizes the calculation of the Library Board development charge: LIBRARY BOARD SUMMARY 10-Year Hist. 2009-2018 Unadjusted .Adjusted Service Level Growth -Related Capital Program Development Charge Development Charge $/capita Total Net DC $/capita $/sq.m $/capita $/sq.m $442.92 $9,540,000 $6,3421930 -, $398.63 $0.00 $403.00 $0.00 HEMSON - 70 - Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 92 - 77 Special Council Agenda - Development Charges May 6, 2009 ITEM# 9 - 93 N - 72 - aIq ry�N 6 m� QNJ g m�N Special Council Agenda - Development Charges May 6, 2009 ITEM# 1-14 o�a 72 m�m m �wiw g n« �$F Sk 6 M n� EdF =off `nF n'w f�U 4 ry 8 S 1=CU ^ RAN y �Sg h�$ 20 o � E¢2� cE 20 E3 J 2'2'2` QN 6U p �777 �9 Y m U %5 mzzz s = �� m f � o N 2 e e z 0 - 73 - Special Council Agenda - De_lopm_tCharges May m 2009 ITEM ■ 1.�5 ! -74- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1"76 B.3 FIRE DEPARTMENT The Aurora Fire Department is responsible for the provision of fire prevention inspections, public education sessions, in addition to a multitude of emergency response services such as motor vehicle accidents and medical assistance. The Aurora Fire Department is a shared service with the Town of Newmarket. Aurora wholly owns the fire stations and the land in which the fire station is situated. All vehicles and equipment are shared with Newmarket. Aurora's current share of these assets is 39%. TABLE 1 HISTORIC SERVICE LEVELS The Fire Department inventory of capital assets includes two fire station with an area of 23,500 square feet, valued at approximately $8.2 million. The buildings occupy a total of 1.97 hectares of land which is valued at $2.4 million. There are 14 vehicles shared between Aurora and Newmarket with a total replacement value of $5.8 million. Aurora's proportionate share of vehicles is 39% or $2.3 million. Aurora's share of Personal firefighting equipment, communications, vehicle and other station equipment adds another $814,200 to the inventory. The current value of the total Fire Services capital infrastructure including building, land, vehicles, furniture and equipment is valued at approximately $13.7 million and has provided Aurora with a 10-year average historical service level of $711.06 per household. The calculated maximum allowable recoverable through development charges is just over $4.2 million. Excess capacity in the amount of $2.0 million has been identified in this service. This has been deemed uncommitted excess capacity and therefore is netted against the maximum funding envelope to obtain a new funding envelope of $2,193,900. The reduced maximum allowable is brought forward to the development charges calculation. TABLE 2 2009-2018 PROVISIONAL GROWTH -RELATED CAPITAL BUDGET AND THE CALCULATION OF THE DEVELOPMENT CHARGE The 2009 to 2018 growth -related capital program is largely comprised of the construction of a new fire hall and training facility. The new fire hall will be approximately 8,500 square feet. The all -in cost for this new facility, including construction, land, furnishings, a pumper and outfitting of 20 firefighters is $4.5 million. The Town also anticipates the construction of a training facility for approximately $500,000. Finally, the Fire Department anticipates the addition of two new crews HEMSON - 75 - Special Council Agenda - Development Charges ITEM # 1 " 17 May 6, 2009 67 within existing stations. The cost of outfitting the additional 44 firefighters is $220,000, along with a new pumper and platoon chief vehicles at $515,000. Altogether, the ten-year capital forecast for Fire Services amounts to $5.8 million. Newmarket's share of the vehicles and equipment is $793,000, reducing Aurora's portion of the capital program to $5.0 million. Approximately $1.2 million is to be funded from the current Fire Department development charges reserve funds and is therefore considered to be the prior growth share. A portion of the Fire Services capital program, $1.6 million, is deemed as a post -period benefit, and will not be recovered under these development charges. The remaining $2,193,900 is related to growth between 2009 and 2018. The Fire Department is not required to be discounted, and the full 2009 to 2018 growth -related share of the capital program, $2,193,900, is included in the present calculation. The growth -related cost is allocated 65 per cent, or $1,426,035, against new residential development, and 35 per cent, or $767,865, against non-residential development. This yields an unadjusted development charge of $89.62 per capita and $1.68 per square metre. TABLE 3 CASH FLOW ANALYSIS After cash flow consideration, the calculated residential charge is increased to $90 per capita and the non-residential charge is also increased to $1.66 per square metre. The following table summarizes the calculation of the Fire Services development charge. FIRE SERVICES SUMMARY 10-Year Hist. 2009-2018 Unadjusted Adjusted Service Level Growth -Related Capital Program Development Charge Development Charge $/household Total Net DC $/capita $/sq.m $/capita $/sy.m $711.06 $5,757,000 $2,193,900 $89.62 $1.68 $90.00 $L66 HEMSON - 76 - Special Council Agenda - Development Charges May 6, 2009 ITEM# 1-�s n W 00 xa Z. as 4 9 Special Council Agenda - Development Charges May 6, 2009 ITEM# 1-19 "k oo<o S SaS000ga�000a �`� ME 8$ $a$ o'o o$ mw o_RN �R�S��oR�p�RR� mG �v U7YR�oRFY '°mmo Rm $$ ury �R `m ems. uUi o RoR hd qm R �RxR��MRRR�R� uq �',RGo�RRN$Ro �5 E E E 2 w K E E .. n EE'=ci ci c3c0� `x gyoi of ¢¢._ E2E`N _WQ H. � jc Nl a .E o. j 6 $$ooES ILO �ILF2m0KK3TN . SW vocNv L=G z 0 M'-1 — / V Special Council Agenda - Development Charges May 61 2009 ITEM # 9 - 20 NNE N P g O I M r=1 - 79 - Special Council Agenda . Development Charges May 6 2009 ITEM # 2-21 ((| g! RR§ RR RR ! !})'§ ! }[|! ( 'l;l.; ..... ...,. E !§!') M\) ( /! \\ / \{§ %%\} ja \ \\} 8-2 888 ga } 9, ! ;[ \; /, G. ` \ \a ! 5,5 � -80- , X / $ Special Council Agenda - Development Charges May m 2009 ITEM $ 1'22 § � ;\;; \E;`§( ;; §;} /5 �]])! ! � [ . § \ )/ § - � f,; • ( ! ! ! !{§ | ! !)§§(§!{lm;;))§ ]!|!!§;0 / O k k .a�. Special Council Agenda . Development Charges May m 2009 ITEM # 1 ) [ (§§ } )!\\ §{!§ \\§ � )!/!; ,- ..§_;| / O k � Special Council Agenda - Development Charges ITEM # May 6,.2009 74 tK0 1710i171F:\ IL0P►I*1g33 I"7 The Town of Aurora Recreation Department is responsible for the recreation and leisure needs of the community, including the provision of arenas, facilities, senior centres, and recreation services and programs to the residents of Aurora. The Town offers indoor recreation services from 12 major facilities, including three large multi use recreation facilities. TABLE 1 HISTORIC SERVICE LEVELS The ten-year historic inventory of capital assets for Indoor Recreation includes 313,375 square feet of indoor recreation building space which occupies 15 hectares of land. The total replacement value of these buildings, including land, fixtures, furniture and. equipment, amounts to $99.8 million. The ten-year historic average service level is $1,744.30 per capita, and this, multiplied by the ten-year forecast growth in population in new units, results in a maximum allowable of $27.8 million. The introduction of the Stronach Aurora Recreation Complex in 2005 results in committed excess capacity in the amount of $10.4 million being identified for this service. As this amount is committed capacity, and the full amount of the funding envelope is brought forward to the development charges calculation. TABLE 2 2009-2018 PROVISIONAL GROWTH -RELATED CAPITAL BUDGET AND THE CALCULATION OF THE DEVELOPMENT CHARGE The capital program for Recreation Services includes funding the principal amounts of the two debentures on the Stronach Aurora Recreation Complex of $13.2 million, and also provides for the addition of an additional facility in the amount of $15.25 million. The additional facility includes 50,000 square feet on 2 hectares of land. Similar to the . Library Board, Recreation Services is undertaking a Recreation Master Plan. As the recommendations of this study have not been approved, a provision for new recreation space that maintains service levels has been made. The total Recreation Services ten year capital program is $28.4 million. A portion of the new facility contains post period benefit in the amount of $687,934. This share will HEMSON -83- Special Council Agenda - Development Charges ITEM # ' 25 May 6, 2009 75 not be recovered under these development charges, but are eligible in the next Development Charges Background Study. The 2009-2018 growth -related capital cost amounts to $27,755,300 which is then reduced by legislated 10 per cent discount, yielding a discounted growth -related net capital cost of $24,979,770, The entire growth -related net capital cost of $24,979,770 for Recreation Services is allocated against residential development in the Town of Aurora. This results in an unadjusted development charge of $1,569.87 per capita. TABLE 3 CASH FLOW ANALYSIS After cash flow consideration, the calculated residential charge is increased to $1,824 per capita. The following table summarizes the calculation of the Recreation Services development charge. RECREATION SERVICES SUMMARY 10-Year Hist. 2009-2018 Unadjusted Adjusted Service Level Growth -Related Capital Program. Development Charge Development Charge $/household Total Net DC Vcapita $/sq.m $/capita $/sgan $1,744.30 $28,443,234 $24,979,770 $1,569.87 $0.00 $1,824 $0.00 HEMSON -84- Special Council Agenda - Development Charges May m 2009 ITEM $ 1 §!§;l;i;!! !\ e9e£\ G ee\S! \ Sege! % � |• � \\\\)])))!§) !) ---------------- §\\[ / \ \///\ L\ §\ - ,, -8a. Special Council Agenda . Development Charges May « 2009 ITEM ■ 222� ƒ]\§E} /�� !! ;( !;•! .._ ) !! . ;_". ;) ; ;l,� : ;:Ge; , -86- f 2 q Special Council Agenda - De_rpm_tCharges May m2og ITEM#1 if is \) . \ \\ �\\ k 2/ � Special Council Agenda - Development Charges May « 2009 ITEM ■ 1'29 ! § \ 9r-T-M Special Council Agenda - Development Charges ITEM # - 30 May 6, 2009 :r B.5 PARKS The Town of Aurora Parks Department is responsible for the recreation and leisure needs of the community, including the provision and maintenance of parks to the residents of Aurora. The Town offers 120 hectares of developed parkland and an array of parks facilities including skateboard parks, splash pads, and soccer fields with artificial turf. TABLE 1 HISTORIC SERVICE LEVELS The ten-year historic inventory of capital assets for Parks includes 120 hectares of developed parkland in 65 parks. The combined value of the municipal, neighbourhood and community parks amounts to $16.8 million. The outdoor facilities include soccer pitches, softball diamonds, tennis courts, basketball courts, outdoor rinks, skateboard parks, splash pads and numerous playgrounds. These facilities have a combined value of $20,5 million. The Parks and Recreation department is also responsible for outdoor parks buildings which are valued at a total of $4.0 million. The combined value of capital assets for Parks is $41.3 million. The ten-year historic average service level is $853.56 per capita, and this, multiplied by the ten-year forecast growth in population in new units, results in a maximum allowable of $13.6 million. No excess capacity has been identified for this service. TABLE 2 2009-2018 PROVISIONAL GROWTH -RELATED CAPITAL BUDGET AND THE CALCULATION OF THE DEVELOPMENT CHARGES The 2008-2017 growth -related capital program for Parks amounts to $13.4 million which is comprised of 40 hectares of new parks and facilities, and a 7,000 square foot expansion to the parks yard. The current balance of the Parks reserve fund statement is in a negative position due to recent park development. The recovery for this reserve fund shortfall is displayed in the opening balance of the residential. The 2009.2018 growth -related capital cost amounts to $13.4 million which is then reduced by the legislated 10 per cent discount, yielding a discounted growth -related net capital cost of $12,060,000. HEMSON _ 89 - Special Council Agenda - Development Charges ITEM # 1 ' 31 May 6, 2009 81 The entire growth related net capital cost of $12,060,000 for Parks is allocated against residential development in the Town of Aurora. This results in an unadjusted development charge of $757.92 per capita. TABLE 3 CASH FLOW ANALYSIS After cash flow consideration, the residential calculated charge increases to $868.00 per capita. This is a reflection of the timing of the capital program and development charges revenues. The following table summarizes the calculation of the Parks development charge. PARKS 10-Year Hist. 2009-2018Unadjusted Adjusted Service Level Growth -Related Capital Program Development Charge Development Charge $/capita Total Net DC $/capita $/sq.m $/capita $/sq.m $853.56 $13,400,000 $12,060,000 $757.92 $0.00 $868.00 $0.00 HEMSON W'7-118 Special Council Agenda - Development Charges May 6, 2009 1 TEM # 1 - 32 W Xp N S 00 am FQ- ds� n i MM ?��aaaa aaaaaa� �aaaaea aaao NNM d1MN Ei vSiN` m ��hm of Nn S+w Ti B,m G.7.o�EiN Si�N iv$ m�m�G �c oNri^ oNowN rv� vim n'i� �v mr vlNo morn �� a �8m �a 'w iF mNm iry„a mMmn,ry v�i��n�rl W o dNroNa�No �u�'o�NamJ oNoA= ^� m snia r��im °mrv��i'jm oi.�n�mn n•%rij ^ o No�NotiHo�dmd �m eNo 6 2 mnmv�EdT."M mn 6mom F m`m �N� m wm�m&�o.n onmr'i��nRvo o =Nao� oNa�ado� �F F v a c � C u E o �da�N N Q nma 11� F�5E._c.I�U�E=_5y E OFm :-� Q �i Ule]UUuI Ii U@ iY1-5J�UzdiN ESPY E F!-»�$� mm -91- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1.33 a s w S ma M on co �w 4m F �c;u. 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N $9 -93- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 35 a s w mQ `a x a Go z n � aQ r S -94- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 36 eSo -------------- 6 �g 9« - 20 2g $e 5g ye a ao Yp P^ o ofE,E�So B P 6 Ex�CQ 55E �4 uNv-G`i3 u�m 6U! �rycu.�oF op"op'f �Ese� �oaE��@NE B 'wo. €4:--�ii M I tl a a`n i$wiiu o'm�"nfaI a -95- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 37 MOVE z r0 Vrl Special Council Agenda - Development Charges May 6, 2009 ITEM # 4 - 3s MI oso ossgsosa� e�a��aea�e9�m www»»w»w» w» » m��meem��ex »wwww» w » wa -------------- �e �e 0 A xemsa -S 6y umEE@E'S 22 w` 4Fa6tm¢ 609 6 -f€LLuU£.�m i`°�P m'n' - 97 - Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 " 39 0 jyo u�o S eg 3 2 z9 99 x =_ �$ iEzaa 1-1-11 @5 MOT-M z 0 Special Council Agenda - De_►pm_tCharges May m 2009 ITEM # 1 ■ a,!! TM. !![Z`§ I IT11 I I �! �!!I!!`°!; \ r . . ,:,.!!; ;:,:,,. ! -.9e !! ! §! ! l,,l.;;l: l.,z . lr , -99- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 41 ma a„ R� a w �p m flm^ W 3 W LL S w Q F E j wp N aF a ¢ F �N g Z 20yp S JKK 6 �F U6M1 d - 1v0 - �Q Special Council Agenda . Development Charges May m 2009 ITEM ■ 2222 2 \/ !!' .. . }{ !\ \ \ \ f} ) \ \\) ` ) � O k % .«0!. Special Council Agenda - Development Charges May m 2009 ITEM # 1 § -102- 4 S � Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 44 94 B.6 PUBLIC WORKS The Town of Aurora Public Works Department is responsible for the operation and maintenance of Town infrastructure including roads and related infrastructure, and utilities infrastructure. Also included in this category is the Town -wide fleet. Note that the engineered components of sanitary sewerage, water and roads and related construction are included in Appendix C. TABLE 1 HISTORIC SERVICE LEVELS The ten-year historic inventory of capital assets for Public Works includes approximately 23,880 square feet of building space with a replacement value of $3.6 million. The fleet and equipment used by the Public Works department staff add an additional $3.6 million to the value of the capital assets. Finally, the historic inventory accounts for public parking spaces in municipally owned lots. A total of 140 spaces is included in the inventory at a value of $392,000. The total value of the Public Works capital infrastructure is estimated to be $7.6 million. The ten-year historic average service level is $122.18 per population and employment, and multiplied by the ten-year growth forecast growth; results in a ten-year maximum allowable of $3.0 million. No excess capacity is identified in this service. TABLE 2 2009-2018 PROVISIONAL GROWTH -RELATED CAPITAL BUDGET AND THE CALCULATION OF THE DEVELOPMENT CHARGE The ten-year growth -related capital plan for Public Works provides for additional space fora public works facility and additions to fleet and equipment, based on historic service levels. Altogether, the ten-year capital forecast for Public Works amounts to $7.3 million. The capital program includes the replacement of a snow storage facility. The replacement portion, $1.4 million, is removed from the development charge calculation. A share of the growth -related costs, roughly $2.9 million, is to be funded from the current Public Works development charges reserve fund balance and is therefore also removed from the development charges calculation. The gross cost of the capital program, net of the replacement portion and the balance of the amount in the development charge reserve fund equals $3,025,394, which is brought forward to the development charges calculation. HEMSON - 103 - Special Council Agenda - Development Charges ITEM # 1 - 45 May 6, 2009 95 The growth -related cost is allocated 65 per cent, or $1,769,855, against new residential development, and 35 per cent, or $952,999, against non-residential development. This yields an unadjusted development charge of $111.23 per capita and $2.08 per square metre. TABLE 3 CASH FLOW ANALYSIS After cash flow consideration, the residential calculated charge increases to $118 per capita and the non-residential calculated charge also increases to $2.17 per square metre. This is a reflection of the timing of the capital program and development charges revenues. The following table summarizes the calculation of the Public Works development charge. PUBLIC WORKS AND FLEET 10-Year Hist. 2009-2018 Unadjusted Adjusted Service Level Growth -Related Capital Program Development Charge Development Charge $/Pop & Emp Total Net DC $/capita $Aq.m ' $/capita $/sq.m $122.18 $7,330,000 $2,722,855 $111.23 $2.08 $11Ao11 $2.17 HEMSON W rIZIM Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 46 s s e� ma a t z 0 - 105 - Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 47 "m ,d m� �a 0.W QQ a�N 1- n �vr Y s yFWN� Z w9 p. a f O y� Y <Fo N FEF � °on °n wn - 106 - z 0 Special Council Agenda - Development Charges May m 2009 ITEM ■ 1' 00 §( \/� ` F / E!!!Z / S k � .007. Special Council Agenda - De_lopm_■Charges May m 200 ITEM ■ 1-4 ( ;\\§\E;:§i � § \ ww ./ ))§^^§!;!!f§§! -108- S CO Special .c _c Agenda - De_lopm_■Charges May m2o ITEM # I-� « 2 E § § ! \ \)\z\\\ \\ ;)\\ , .999. Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - s� M APPENDIX C ENGINEERING INFRASTRUCTURE TECHNICAL APPENDIX ROADS AND RELATED, WATER AND SANITARY SEWAGE SERVICES HEMSON - 110 - Special Council Agenda - Development Charges ITEM # 1 - 52 May 6, 2009 102 APPENDIX C ENGINEERED SERVICES TECHNICAL APPENDIX ROADS AND RELATED, WATER AND SANITARY SEWAGE SERVICES The Public Works Department ensures that the Town's municipal services such as roads, water and waste water systems and storm water drainage/management facilities are designed for the appropriate protection, health and quality of life of the public, and good engineering practices. The department also provides review and inspection services to facilitate new development and to maintain service standards to sustain the existing infrastructure. This appendix provides a brief outline of the municipal engineered infrastructure namely; roads, water and sanitary sewer services. The road infrastructure includes the roads themselves as well as streetlights, intersection improvements, storm drainage (within the ROW), streetscaping, traffic signalization, level crossings and other related structures. The water services include water supply and distribution system and the sanitary sewer service provides for sewage treatment and the sanitary sewers. The growth -related road and related infrastructure projects are required to service the demands of new development up to the "build -out" of the Town to approximately 70,000 persons and total employment of 34,700. This forecast is discussed in more detail in Appendix A. The following tables set out the 2009 to build -out growth -related capital forecast and the calculation of the development charge for roads, water and sanitary sewer servicing. The cost, quantum and description of the projects included in the forecast have been provided by Town staff and are based on the Town's budgets, 2004 Development Charges Study, and other capital planning documents. This report identifies the necessary engineering infrastructure to allow the municipality to meet the servicing needs of the forecast 2031 population. Tables 1- 4 provide details of the projects included in the Town -wide roads and related engineered infrastructure development charges calculation. The content of the tables is as follows: Table 1 Roads and Related Capital Program: 2009 - Build -Out Table 2 Calculation of Unadjusted Development Charge Table 3 Residential Cash Flow Analysis Table 4 Non -Residential Cash Flow Analysis The total cost of the roads capital program is $34.3 million (Table 1) and provides for the undertaking of projects throughout the Town. HEMSON -111- Special Council Agenda - Development Charges ITEM ($ - 53 May 6, 2009 103 The entire $34.3 million growth -related roads capital program is not to be fully recovered from future development charges; approximately $3.95 million of the program has been identified as a non -growth or benefit to existing share (Table 2). The Town does not anticipate receiving grants for any of the identified road works. The result is a growth -related and development charge recoverable share of the capital program of $30.3 million (Table 2). The growth -related cost has been allocated 65 per cent ($19.7 million) to new residential development and 35 per cent ($10.6 million) to new non-residential development. The allocation of costs is based on shares of population (in new households) and employment growth over the planning period. The long-term cash -flow analysis (Tables 3 and 4) takes into consideration expenditure timing and revenue projections. The effect of the analysis is a decrease in the calculated development charges rates. The main reason for this decrease in the rates is the expectation that the development will occur in advance of the growth -related expenditures. The following is a summary of the calculated roads development charges: 2009-2031 Growth -Related Capital Program Total Net, DC Recoverable $34,265,393 $30,313,213 Sanitary Sewer Services ROADS AND RELATED Unadjusted Development Charge $/capita- $/sq.m $916.92 $16.35 Adjusted Development Charge $/capita .$/sq.m $893 $15.64 Tables 5 - 8 provide details of the projects included in the sanitary sewer infrastructure development charges calculation. The content of the tables is as follows: Table 5 Sanitary Sewer Service Growth -Related Capital Program Table 6 Calculation of Unadjusted Sewer Development Charge Table 7 Residential Cash Flow Analysis Table 8 Non -Residential Cash Flow Analysis The Town's sanitary sewer service growth -related capital program totals $9.1 million to service growth to build -out of the Town. The program provides for sanitary sewer works and sewage pumping station projects (Table 5). HEMSON Special Council Agenda - Development Charges ITEM # 1 " 54 May 6, 2009 104 The entire $9.1 million capital program is growth -related and development charge recoverable. The growth -related cost has been allocated 65 per cent ($5.9 million) to new residential development and 35 per cent ($3.2 million) to new non-residential development (Table 6). The allocation of costs is based on shares of population (in new households) and employment growth over the planning period. The long-term cash -flow analysis (Tables 7 and 8) takes into consideration expenditure timing and revenue projections. The effect of the analysis is a decrease in the calculated development charges rates. The main reason for this decrease in the rates is the expectation that the development will occur in advance of the growth -related expenditures. The following is a summary of the calculated sewer development charges: Water Services Tables 9 - 12 provide details of the projects included in the water service infrastructure SEWAGE TREATMENT AND SANITARY SEWERS - 2009-2031 Unadjusted .Adjusted Growth -Related Capital Program Development Charge Development Charge Total. Net DC Recoverable $/capita $Aq.m $/capita $/sq.m $9,071,307 $9,071,307 $274 $4.89 $265 $4.62 development charges calculation. The content of the tables is as follows: Table 9 Water Service Growth -Related Capital Program Table 10 Calculation of Unadjusted Sewer Development Charge Table 11 Residential Cash Flow Analysis Table 12 Non- Residential Cash Flow Analysis The Town's water service growth -related capital program totals $9.4 million to service growth to build -out of the Town. The program provides for watermains, pumping stations and related distribution works (Table 9). The entire $9.4 million capital program is growth -related and development charge recoverable. The growth -related cost has been allocated 65 per cent ($6..1 million) to new residential development and 35 per cent ($3.3 million) to new non-residential development (Table 10). The allocation of costs is based on shares of population (in new households) and employment growth over the planning period. HEMSON Special Council Agenda - Development Charges ITEM # 1 ' 55 May 6, 2009 105 The long-term cash -flow analysis (Tables 11 and 12) takes into consideration expenditure timing and revenue projections. The effect of the analysis is an increase in the calculated development charges rates. The main reason for this increase in the rates is the expectation that the timing of the growth -related expenditures is in advance of the benefitting growth. The following is a summary of the calculated water service development charges: WATER SUPPLY AND DISTRIBUTION 2009-2031 Unadjusted Growth -Related Capital Program Development Charge Total Net DC Recoverable $/capita $/sq.m $9,376,305 $9,376,305 $203.61 $5.06 HEMSON Adjusted Development Charge $/capita $/sq.m $355 $6.21 Special Council Agenda - Development Charges May m 2009 ITEM # 1-56 lr;.. . � I �\" ! \\}) ) �. ..... . {( )|! \§ /! �§ ° ..... . })(i)\i\}}( /ii'\}»!!}/ Io RRq CGQQQ; f \ Special Council Agenda - Development Charges May 112009 ITEM # 9 - 57 N S`° 8iQ 9 �9 o� ww»«xwnnnnxwwnNxnx«wnw « »nn » us {.XXS°X XeXXXbP S'XXXXXXXX:X r'.8 w&&&mmmmawmmmmmomwmm eT°» n XXso 40 „w»»wwww»nxnn»»»w»wnww ww ««w» « �S XXXXXA"X$'��eXXX.`¢X.`¢T°T°e`eXX n�» od"eT ud aqX 0000000000an�ego a_000 tt oe_e( _ u" mK ^omPnmm a m��t3 fg N rc O O � nn✓rx nw»«uan»»nnnnwnnmx « wnn x ... ... ... .. 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N. )\}L Qu § a)- ;! §!(@� a � Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 63 x �; 'o a n¢ of b »»� ry v � F to g F a ro ut N $n S to » G nw ww to » v C R �9 r° �b 2m w»a to <^, ^ F »to » to R IN I ry to Ultit ww P' L^q i�w "»»' to to mm to " ry ry NNto ry N in zm n oE.�nn rv��v a w �g rc EVE s wE3 a zww Sp o 0 �aa 2 u v z Iwo g m o�� = m 5 � wzz o, rc @K T S CNN UZ S � 2 J 'U K to to U a mo ¢ of »» » to to » G 4&� to » rvo m 6 » » Fo to ry F » a to a» to to»» w » ry Gy V o $ uwi m v as w -» » F to Ia » g to ot i N6to o e55 wM �g a rcrc - 122 - Special Council Agenda - Development Charges May 6, 2009 R '! w w w y'ei w g y o ryq � wn V ry Fm u� 6 rv$ ryn w w N _ m m or Q w wo ryn.m $ cnm ry E SNN w �rcrc h �w^ V 2ANyGyG £ 2�u N 6 Yg p BryZ acE tlyl aQ2 IIIIII°-1-- efr W Lil V6 s W� fr fr O ITEM # 1 - 64 a rpm» F4 4 m � y N� — w `" f ✓. � w w srvy. o,2NN 4.� - 123 - Special Council Agenda . Development Charges May m 2009 ITEM # 1 \§ .................... . ! rr;.............. !\. .................... . ]), ! ` \, .................... . . .................... ..... ...........: § .444. / \ Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 66 4 C wtN N w N "a N rc N M a N h"N � m F b m `N a v�` % � m is YQU� q �y U sam�s mu'irc e � o 29 $ `o 6 }] m M z�v U y a E' rn tt UU E E YI 4 N Tn � 0 W N m y 3 � J Q 3 F Q z 5O FF.A1 W - 125 - Special Council Agenda . Development Charges May m 2009 ITEM # 1-� ■! � r /F2 !$7 ®/Q)/ \ ))§! §|! > K§/ { ! \ ( /(R §§§ |E§!§!§§ -126- \ \ ( 4t : /; 22 / / $ Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 68 00 6m � � y G •o V 6m V m m Fm m " e o w ,zm Nzuim d oimm 5 z gym_ o � - m m»o z z8a E � d LLaa 5 N �i F�00 '$ v¢ v w 5 � N v m T'u.. as z W - 127 - Special Council Agenda- Development Charges May 6, 2009 ITEM # 1 - 69 119 APPENDIX D RESERVE FUND BALANCES HEMSON - 128 - Special Council Agenda - Development Charges ITEM # 1 " 70 May 6, 2009 120 APPENDIX D DEVELOPMENT CHARGES RESERVE FUND UNALLOCATED BALANCES The DCA requires that a reserve fund be established for each service for which development charges are collected. Table 1 presents the uncommitted reserve fund balances that are available to help fund the growth -related net capital costs identified in this study. The opening balances of the development charges reserve funds as of December 31, 2008 have been adjusted to account for current commitments to reserve fund projects. All of the available reserve fund balances are therefore accounted for in this study. As shown on Table 1, the December 31, 2008 total reserve fund balance was $5.8 million. The application of the available uncommitted balance in each of the reserve funds is discussed in the appendix section related to each service. These funds are assigned to projects in the initial years of the capital program for each service. This has the effect of reducing and deferring capital costs brought forward to the development charges calculation and the cash flow analysis. HEMSON - 129 - Special Council Agenda - Development Charges May 6, 2009 STEM # 1 - 71 N cD Imo.M N�PO0m w V "O C M (O tp N —( 1 W W �n"DM d'm OM V w a- Gl 7 y m M NLf V LL d (} It Mm 1� M O r N� 6) .- M eF QNpp wvr tnNCq�v> w K 0 ya W O f9 F Z V � 0 0 0] o _ V N 4 ? 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WNN F 130 - 7 Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 72 -931- Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 73 122 APPENDIX E LONG-TERM CAPITAL AND OPERATING COST IMPACTS HEMSON - 132 - Special Council Agenda - Development Charges May 6, 2009 ITEM# 1-74 N a tt� 6� W U' O LL LL q QLLO�- W ONF'9 N z m au.0H Oz Wo« aw O W W O W zp W � F w Q N W � w � N � — ti m P Y N � r � � o n N N 4 F 0 N � M O K N � r m N l{ o M 41 N N Y M � oy o a r N — O e VI N 3 v 3 c c o ao y M Y n b � H N E m w a � w 2 � z C 3 •_._ LL o� 04 VW WLLD' Q 3 @ D 3 fl H 14 m .7z 'u z Ez ar a'F= D Kz O � - 133 - Special Council Agenda - Development Charges May 6, 2009 ITEM # 1 - 75 V N WW xQ oa WN a� Q Ot F J 6 U 0 Z Uy' OOOOOOO OOI c'm ONm OOI�o OmN NmIDNOOOI 0' 0' � om mNN v NM a mo I� r.- Mr Nmr W m10_ en om m� an �n � N � 6.m INN ro V c7 lV N N O O O O O O � N � O O O O O O O m N 007 V O VOVON OOI Nm ... ONI�lJ001OO' O l N W N N N N OONi^ O M O O O o o O O O N 7 O o o O O O O W v N Ol O O M 0 0 'oo 0 o1J�m o ooi o 000 000 o)J m)000 ' N m NN NfO a�- N 00(p d o O O O m .- o o m N V (O m N o o m � O m N N N N m m m Om m o OI O m o Ci N y�vi vi o00 oN t�� ooi o�oo� viM mmo 00 N I V N O V W I m y N V N 0 00 0000 otd roi ooai o 00000d ri lri�r odo O O O O O o o O m N a- O -Iq C! 0 OI l� N N 0 0 0 .. ... 0 0 0' ... O O O' N N O N O N N m N W c N 0000000 omN.-oo� oa00000 a.-mM000 O OOOOO ONI�m'0'O� O'0'0'OO'00 Mm'VIN000' NmNN Nm V �- r o 0 0 6 W� o O O W ITV! o O o o O O O 'o m N" O o M o W o o m o V N N 0 0 0 N O� ryNN NOOOO am'O0'N N N N N w v m y O 10 0 O h N O N yCj D N E .� Ew E0 .� EN L D O N M O U M O O U M E d > C C 0 12 C L Zo zo C 0 z oQo Q O a E o 0 o d E L o 0 o LL E o 0 o LL ry ULLLL C UI +oN. U Cp U C JI ooN. UILLL E G L U N LL LL ql N U LL LL N U C 0 N R Z Y/1 N O O D N U O R N Z O O p V LL Z N rA N &] NU d N N ill O _N a U U N cvvo�aLL'�14,. ..o�a1,_vb1O'mvorcau.�°�,�o�au° u F Z Z J F Z Z LL H Z Z ID- Z Z - 134 - R 7 Special Council Agenda - Development Charges May 6, 2009 N t a `oa 02 U m N O 1O O N V 7[ V M 0 0 0 c V' ( O O v [p ooliM V M Mr N O O m Mmrn M [O m m M M MM I. 0 V .-N ��m N�-VjM 0 0 0 0 0 0 0 0 0 0 0 0 0 0 . m m. o o 0000000 oro"No0o v'C.; 5'v000i m� p M N M M 000000o mMory6vv 6666 NaN Ni o 00 of v��O ooN6NO66 ry O V m ro�tno N M N 0000000 000000o Mmv000v Cio 'o oo oro �i N d o0 oNr t`o 0 0 N_O NN N O r- mON M V^i M N � o a o 0 0 0 0 0 0 0 o a 6 o v in m N o m m O IV (V O o O Ti V O c0 N O O O O O O O O O O O O O O N m O m m Ooo Ci6o o pi (V o00 od N of (V oY tV INO h N r of r N O O O O O O OO OO ON 1O N O O 7 do o� ci of o 0 o Mir � doai jc�jq.jq Y nim O O O O O 6 O O O 6 0 0 0 O T In V MOO O O O CI 666 O N' (V N 0 0 0 o o O 61 O M N N n V O I m .- M V) M m O M OR N N M O N �U - K N 00 0660 C mo [V10 N C n tll N N O V N � YiO� O O O O O O O O O O O O O O N M mm N O O K 6y100 0 Na1�g m W ON O IOOOOO N O2 N N Vl M 0006660 000000 o ro r. 1J Mom` o O o 0 o O Ci o Di (V cV O o Ci of m V T O� W NOS N N Oa-.- mr0� M �➢N M N N N N L LF L V) L ryry L � E� L EM r� aM 0oM ❑ Z C QLL CE O NN?d L N U LLDOOLLW , C U 0010 U U z o o = LL 3 z 0 "0 8 n U z o� a LL o a LL K d LL z z O z z❑ F F z z❑ a~ u ITEM # 1 - 76 - 135 - Special Council Agenda - Development Charges ITEM # 1 - 1 May 6y 2009 ATTACHMENT #2 THE CORPORATION OF THE TOWN OF AURORA By -low Number 5139.09 DRAFT DRAFT BEING A BY-LAW for the imposition of development charges. WHEREAS subsection 2(1) of the Development Charges Act, 1997, S.O. 1997, c. 27, as amended (the "Act') provides that the council of a municipality may by by-law Impose development charges against land to pay for Increased capital costs required because of increased needs for services arising from development of the area to which the by-law applies; AND WHEREAS a development charge background study has been completed in accordance with section 10 of the Act; AND WHEREAS the Council of the Town of Aurora has given notice and held a public meeting on the 61b day of May, 2009 In accordance with section 12 of the Act and the Regulations made under the Act: NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF AURORA ENACTS AS FOLLOWS: 1.0 DEFINITIONS 1.1 In this By-law, 1) "Act" means the Development Charges Act, 1997, S.O. 1997, c. 27, as amended, or any successor thereto; 2) "accessory use" means where used to describe a use, building or structure, that the use, building or structure is naturally and normally incidental, subordinate in purpose of floor area or both, and exclusively devoted to a principal use, building or structure; 3) "apartment building" means a residential building, other than a motel or a hotel, containing three or more dwelling units, where access to each residential unit is obtained through a common entrance or entrances from the street level, and the residential units are connected by an interior corridor; 4) "apartment dwelling unit" means any residential dwelling unit within an apartment building; 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; 5) "benefiting area" means an area defined bya map, plan or legal description in a front -ending agreement as an area that will receive a benefit from the construction of a service; 7) "board of education" has the some meaning as that specified in the Education Act, R.S.O. 1990, c. E.2, as amended or any successor thereto; 8) "Building Code Act: means the Building Code Act, 1992, S.O. 1992, c. 23, as amended, and all Regulations made under it including the Building Code, as amended, or any successors thereto; Page 1 of 10 - 136 - Special Council Agenda - Development Charges ITEM # 1-2 May 6, 2009 9) "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, construct or improve facilities including, I. furniture and equipment other than computer equipment, and it. materials acquired for circulation, reference or information purposes by a library board as defined in in the Public Libraries Act, R.B.G. 1009, c. P.44, as amended, and ilt. rolling stock with an estimated useful life of seven years or more, and (a) to undertake studies in connection with any matter under the Actandany of the matters in clauses (a) to (d), including the development charge background study required for the provision of services designated in this By-law within or outside the municipality, including interest on borrowing for those expenditures under clauses (a), (b), (c) and (d) that are growth related; 9) "commercial" means any non-residential development not defined under "institutional" or "industrial", 10) "Council" means the Council of the municipality; 11) "development" means the construction, erection or placing of one or more buildings or structures on land or the making of an addition or alteration to a building or structure that has the effect of increasing the size or usability thereof, and includes redevelopment; 12) "development charge" means a charge imposedwith respect to this By-law; 13) "dwelling unit" means any part of a building or structure used, designed or Intended to be used as a domestic establishment in which one or more persons may sleep and are provided with culinary and sanitary facilities for their exclusive use, and shall include guest suites available for temporary use on any basis within any residential use development, but, for clarity, excludes suites contained within a motel or hotel; 14) 'farm building" means that part of a bona fide farming operation encompassing barns, silos and other development ancillary to an agricultural use, but excludes a residential use; 15) "grade" means the average level of finished ground adjoining a building or structure at all exterior walls; 16) "gross floor area" means In the case of a non-residential building or structure or the non-residential portion of a mixed -use building or structure, the aggregate of the areas of each floor, whether above or below grade, measured between the exterior faces of the exterior walls of the building or structure or from the centre line of a common wall separating a non- residential and a residential use, excluding, in the case of a building or structure containing an atrium, the sum of the areas of the atrium at the level of each floor surrounding the atrium above the floor level of the atrium, and excluding , in the case of a building containing parking spaces, the sum of the areas of each floor used, or designed or intended for use for the parking of motor vehicles unless the parking of motor vehicles is the principal use of the building or structure, and, for the purposes of this definition, the non-residentlal portion of a mixed use building is deemed to Page 2 of 10 - 137 - Special Council Agenda - Development Charges ITEM # May 6, 2009 include one-half of any area common to the residential and non-residential portions of such mixed -use building or structure; 17) 'Industrial' means lands, buildings or structures used or designed or intended for use for manufacturing, processing, fabricating or assembly of raw goods, warehousing or storage of goods, and includes office uses and the sale of commodities to the general public where such uses are accessory to an industrial use, but does not include the sale of commodities to the general public through a warehouse club; 18) 'Institutional' means lands, buildings or structures used or designed or intended for use by an organized body, society or religious group for promoting a public or non-profit purpose and shall include, but without limiting the generality of the foregoing, places of worship, and special care facilities; 19) "local board" has the same meaning as defined in section 1 of the Act; 20) 'local services" means those services, facilities or things which are under the jurisdiction of the municipality and are related to a plan of subdivision or within the area to which the plan relates in respect of the lands under sections 41, 51 or 53 of the Pfanning Act, R.S.O. 1990, c. P.13, as amended, or any successor thereto; 21) "mixed use" means land, buildings or structures used, or designed or intended for use, for a combination of residential and non-residential uses; 22) "mobile home" means any dwelling that is designed to be made mobile, and constructed or manufactured to provide a permanent residence for one or more persons, but does not include a travel trailer or tent trailer; 23) "multiple dwellings" means all dwellings other than single -detached, semi- detached and apartment dwelling units; 24) "municipality" means The Corporation of the Town of Aurora; 25) "non-residential use" means a building or structure of any kind whatsoever used, designed or intended to be used for other than a residential use and includes all commercial, industrial and institutional uses; 26) "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; 27) "place of worship" means that part of a building or structure that is exempt from taxation as a place of worship under the Asses$ment Act, R.S.O. 1990, c. A.31, as amended, or any successor thereto; 28) 'redevelopment" means the construction, erection or placing of one or more buildings or structures on land where all or part of a building or structure has previously been demolished on such land, or changing the use of a building or structure from residential to non-residential or from non-residential to residential; 29) 'regulation" means any regulation made under the Act; 30) 'residential use" means land or buildings or structures of any kind whatsoever used, designed or intended to be used as living accommodation for one or more Individuals, and shall include, but is not limited to a single detached dwelling, a semi-detached dwelling, an apartment dwelling unit, a multiple dwelling unit and a residential dwelling unit accessory to a non-residential use, but shall not include institutional uses, a motel or hotel; 31) "semi-detached dwelling" means a dwelling unit in a residential building Page 3 of 10 - 138 - Special Council Agenda - Development Charges ITEM May 6, 2009 consisting of two dwelling units having one vertical wall or one horizontal wall, but no other parts attached, or another dwelling unit where the residential units are not connected by an Interior corridor; 32) "services" (or "service") means those services designated in Schedule "A" to this By-law; 33) "servicing agreement" means an agreement between a landowner and the municipality relative to the provision of municipal services to specified lands within the municipality; 34) "single detached dwelling unit" means a residential building consisting of one dwelling unit and not attached to another structure and Includes a mobile home. 2.0 DESIGNATION OF SERVICES 2.1 The categories of services for which development charges are imposed under this By-law are as follows: a) Library; b) Fire and Rescue Services; c) Indoor Recreation; d) Park Development; e) Public Works and Transportation; f) General Government; and, g) Town -Wide Engineering; 2.2 The components of the services designated in subsection 2.1 are described in Schedule "A" to this By-law. 3.0 APPLICATION OF BY-LAW RULES 3.1 A development charge shall be payable In the amounts set out in this By-law where: a) the lands are located in the area described In subsection 3.2; and b) the development of the lands requires any of the approvals set out In clause 3.4(a). Area to Which By-law Applies 3.2 Subject to subsection 3.3, this By-law applies to all lands in the geographic area of the Town of Aurora. 3.3 This By-law shall not apply to lands that are owned by and used for the purposes of: a) the Town of Aurora are local board thereof; b) aboard as defined in section 1(1) of the Education Act; as amended; or c) the Regional Municipality of York or a local board thereof. Approvals for Development 3.4 (a) A development charge shall be Imposed on all lands, buildings or structures that are developed for residential or non-residential uses if the development requires: i, the passing of a zoning by-law or of an amendment to a zoning by-law under section 34 of the Planning Act as amended; - Page 4 of 10 - 139 - Special Council Agenda - Development Charges ITEM # 1-5 May 6, 2009 i. The approval of a minor variance under section 45 of the Planning Act as amended; iii. a conveyance of land to which a by-law passed under subsection 50(7) of the Planning Act as amended applies; iv. the approval of a plan of subdivision under section 51 of the Planning Act as amended; v. a consent under section 53 of the Planning Act as amended; vi. the approval of a description under section 9 of the Condominium Act, 1998, S.O. 1998, c. 19, as amended; or vii. the issuing of a permit under the Building Code Act, 1992asamended, in relation to a building or structure. (b) No more than one development dharge for each service designated in subsection 2.1 shall be imposed upon any lands, buildings or structures to which this By-law applies even though two or more of the actions described In clause 3.4(a) are required before the lands, building or structures can be developed. (c) Despite clause 3.4(b), if two or more of the actions described in clause 3.4(a) occur at different times, additional development charges shall be imposed if the subsequent action has the effect of increasing the need for services. Exemptions 3.5 Notwithstanding the provisions of this By-law, a development charge shall not be imposed with respect to: a) an enlargement of the gross floor area of an existing industrial building in accordance with Section 4 of the Act; b) the issuance of a building permit in accordance with subsection 2(3) of the Act, c) lands, buildings or structures used or to be used for a place of worship or the purposes of a churchyard or cemetery exempt from taxation under the Assessment Act as amended; d) the development of non-residential farm buildings constructed for bona fide farm uses; or e) Indian lands 3.5.1 As set out in section 4 of the Act, if a development Includes the enlargement of the gross floor area of an existing industrial building, the amount of the development charge that Is payable in respect of the enlargement is determined In accordance with this subsection 3.5.2. (a) The exemption for industrial enlargement provided for in this subsection 3.5.2 shall apply only to the enlargement of the gross floor area of an existing industrial building. For this section, an"existing industrial building" shall have the same meaning as those terms in O. Reg. 82198 under the Act as amended, and at the time of application for a bullding permit, shall have fifty (50) per cent or more of its gross floor area occupied by Industrial uses. i) Such enlargement must be attached to, or within, the existing industrial building, but shall not be attached by means only of a tunnel, bridge, Page 5 of 10 - 140 - Special Council Agenda - Development Charges ITEM # 1 - 6 May 6, 2009 passageway, shared below grade connection, foundation, footing, shared connected roof or parking facility; and i) both the enlargement and existing industrial building must be constructed on lands owned by the same beneficial owner; and, iii) the enlargement shall be for a use for or in connection with an industrial purpose as set out in this by-law. (b) For the purposes of this subsection 3.5.2, the gross floor area of an existing industrial building shall be calculated as it existed prior to the first enlargement in respect of that building for which an exemption under section 4 of the Act is sought. (c) For the purposes of this subsection 3.5.2 only, the enlargement shall be measured to also include all prior enlargements from the existing industrial building as determined in clause 3.5.2.(b). (d) If the gross floor area is cumulatively enlarged by fifty (50) per cent or less, the amount of the development charge in respect of the enlargement is zero. (e) If the gross floor area is cumulatively enlarged by more than fifty (50) per cent, the amount of the development charge in respect of the enlargement Is the amount of the development charge that would otherwise be payable multiplied by the fraction determined as follows: i) determine the amount of area by which the enlargement exceeds fifty (50) per cent of the gross floor area before the enlargement. it) divide the amount determined under paragraph (1) by the amount of area of enlargement. Amount of Charass Residential 3.6 The development charges described in Schedule "B" to this By-law shall be Imposed on residential uses of lands, buildings or structures, including a dwelling unit accessory to a non-residential use and, in the case of a mixed -use building or structure, on the residential uses in the mixed -use building or structure, according to the type of residential unit, and calculated with respect to each of the services according to the type of residential use. Non -Residential Uses 3.7 The development charges described in Schedule "B" to this By-law shall be imposed on non-residential uses of lands, buildings or structures and, in the case of a mixed -use building or structure, on the non-residential uses in the mixed -use building or structure, and calculated with respect to each of the services according to the gross floor area of the non-residential use. Reduction of Development Charges Where Redevelopment 3.8 Despite any other provision of this By-law, where, as a result of the redevelopment of land, a building or structure existing on the same land within four years prior to the date of payment of a development charge in respect of such redevelopment was, or is to be demolished, In whole or in part, or converted from one principal use to another principal use on the same land, in orderto facilitate the redevelopment, the development charge otherwise payable with respect to such redevelopment shall be reduced by the following amounts: a) In the case of a residential or mixed -use building or structure containing residential uses, an amount calculated by multiplying the applicable development charge under subsections 3.6 and 3.7 of this By-law by the Page 6 of 10 - 141 Special Council Agenda - Development Charges ITEM # " May 6, 2009 number, according to type, of dwelling units that have been or will be demolished or converted to another principal use; b) In the case of a non-residential building or structure, or in the case of a mixed -use building or structure, the non-residential uses in the mixed -use building or structure, and amount calculated by multiplying the applicable development charge under subsections 3.6 and 3.7 of this by-law by the non-residential gross floor area that has been or will be demolished or converted to another principal use; provided that such amounts shall not exceed, In total, the amount of the development charges otherwise payable with respect to the redevelopment. 3.8.1 For purposes of this section, a demolition is deemed to have occurred on the date of issuance of a demolition permit, or in the case of accidental or natural destruction of the structure, the date of such occurrence. 3,8.2 Transition: Properties which underwent demolition or change of use as above in the five year period prior to the adoption of this By-law, shall have a five year period from that demolition or change of use to obtain a reduction for such upon payment of the development charge in respect of the property. Time of Payment of Development Charges .3.9 A development charge imposed under this section is payable upon Issuance of the first building permit with respect to each building or structure. Where applicable, a development charge for Town -wide engineered services shall be payable upon execution of a vacant land condominium agreement, a development agreement, or a subdivision agreement, with the remaining applicable portions of the development charge to be payable at issuance of building permit as above. 3.10 Despite subsection 3:9 of this By-law, Council, from time to time, and at any. time, may enter into agreements providing for all or any part of a development charge to be paid before or after it would otherwise be payable. 4.0 PAYMENT BY SERVICES 4.1 Despite the payments required under subsection 3.9 of this By-law, Council may, by agreement, give a credit towards a development charge in exchange for work that relates to a service for which a development charge is imposed under this By-law. 5.0 INDEXING 5.1 The development charges set out in Schedule "B" to this By-law shall be adjusted annually, without amendment to this by-law, on the first day of January of each year, commencing on January 1, 2010, in accordance with the Statistics Canada Quarterly Construction Price Statistics. 6.0 SCHEDULES 6.1 The following schedules to this by-law form an integral part thereof: Schedule "A" - Components of Services Designated in subsection 2.1 Schedule "B" — Residential and Non -Residential Development Charges 7.0 DATE BY-LAW IN FORCE 7.1 This By-law shall come into force on the date it is passed. 8.0 DATE BY-LAW EXPIRES Page 7 of 10 - 142 - Special Council Agenda - Development Charges ITEM # " 8 May 6, 2009 8.1 This By-law will expire Flve (5) years from the date of passage, unless It is repealed at an earlier date. 9.0 REPEAL 9.1 By-laws No.4533-04.F is hereby repealed upon passage of this By-law. READ A FIRST AND SECOND TIME THIS xxr" DAY OF JUNE, 2009. READ A THIRD TIME AND FINALLY PASSED THIS xxtb DAY OF JUNE, 2009. PHYLLIS M. MORRIS, MAYOR LUCILLE KING, TOWN CLERK Page 8 of 10 - 143 - Special Council Agenda - Development Charges ITEM # " 9 May 6, 2009 By-law 6139.09 - pg 9 Schedule "A" Town of Aurora Components of Service 1.0 Library Services 2.0 Fire Services 3.0 Indoor Recreation 4.0 Park Development 5.0 Public Works 5.1 Buildings 5.2 Fleet 5.3 Parking 6.0 General Government 7.0 Town -wide Engineered Services 7.1 Roads and Related 7.2 Sanitary Sewers 7.3 Watermains Page 9 or 10 - 144 - Special Council Agenda - Development Charges May 6, 2009 ITEM # 1-10 By-law 6139-09 - pg 10 Schedule "B" Town of Aurora Development Charge Summary PROPOSED RESIDENTIAL CHARGE Chores Per Unity a Ape sets Sin9lastSomts Rows and Other Two bedrooms Bachelorand SERVICE Multi les and greater Ono Bedroom GENERAL GOVERNMENT $373 $255 $196 $147 LIBRARY $1,330 $1,048 $606 $605 FIRE SERVICES $297 $234 $180 $136 RECREATION $8,019 $4,742 $3,648 $2,736 PARKS $2,864 $2,257 $1,736 $1,302 PUBLIC WORKS $389 $307 $236 $177 SUB -TOTAL GENERAL SERVICES $11.222 $8,843 $6,802 $6402 ROADS AND RELATED $2,947 $2,322 $1,786 $1,340 WATER SUPPLY AND DISTRIBUTION $1,172 $923 $710 $533 SEWAGE AND SANITARY SEWERS $875 $689 $630 $398 SUB -TOTAL ENGINEERED SERVICES 4,994 $3,934 $3,026 $2,270 TOTAL CHARGE PER UNIT $18216 $12,776 $%828 $7371 PROPOSED NON-RESIDENTIAL CHARGE Non -Residential Charge per SERVICE Square Metre GENERAL GOVERNMENT $1.81 LIBRARY . FIRE SERVICES $1.66 RECREATION - PARKS - PUBLIC WORKS $2,17 SUB -TOTAL GENERAL SERVICES $5.64 ROADS AND RELATED $15.64 WATER SUPPLY AND DISTRIBUTION $6.21 SEWAGE AND SANITARY SEWERS $4.62 SUB -TOTAL ENGINEERED SERVICES $26.47 TOTAL CHARGE PER SQUARE METRE $32.11 Page 10 of 16 - 145 - Special Council Agenda - Development Charges By-law 5138-09 - 1 May 6, 2009 AUT,®RA yo°°-&&``°°d`MPO'Ry RESOLUTION FORM COUNCIL MEETING 09-13 - MAY 6, 2009 - ITEM # By-law Moved By Seconded By Resolution: V READING OF BY-LAW RECOMMENDED: THAT the following listed by-law be given 1st, 2nd and 3rd readings, and enacted: 5138-09 BEING A BY-LAW to confirm actions by Council Resulting from Special Council Meeting 09-13 on May 6, 2009 Proposed Resolution/Amendment (if applicable): CARRIED DEFEATED - 146 - Special Council Agenda - Development Charges By-law 5138-09 - 2 May 6, 2009 - 147 - Special Council 1genda - Development Charges By-law 5138 i09 - 3 May 6, 21 THE CORPORATION OF THE TOWN OF AURORA By-law Number 5138-09 BEING A BY-LAW to Confirm Actions by Council Resulting from Special Council Meeting - Development Charges, 09-13 on May 6, 2009 NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF AURORA HEREBY ENACTS AS FOLLOWS: THAT the actions of the Council at its meeting held on May 6, 2009 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 6' DAY OF MAY, 2009, READ A THIRD TIME AND FINALLY PASSED THIS 6'DAY OF MAY, 2009. PHYLLIS M. MORRIS, MAYOR LUCILLE KING, TOWN CLERK - 148 - ADDITIONAL ITEMS TABLED FOR SPECIAL COUNCIL MEETING 09-13 DEVELOPMENT CHARGES Wednesday, May 6, 2009 DELEGATIONS PERTAINING TO ITEM 1 FS09-025 - Update to Development Charges By-law Delegation b) Mr. Stephen Dupuis Delegation c) Mr. Ed Warankie, on behalf of Mr. Remo Agostino. The Daniels Corporation RECOMMENDED: THAT the delegations be received and referred to item 1. NEW ITEMS - CORRESPONDENCE PERTAINING TO ITEM 1 FS09-025 - Update to Development Charges By-law Item 2 Correspondence from Mr. Vince Santino, Manager of Land Development Minto Communities (Toronto) Inc. Item 3 Correspondence from Ms Lynda J. Townsend, Partner Townsend, Rogers LLP Barristers and Solicitors Item 4 Correspondence from Mr. Claudio Maggioni, Vice -President Country Wide Homes Item 5 Correspondence from Mr. Carlo Baldassarra, President Greenpark Group of Companies c/o Santorio Holdings Inc. Item 6 Correspondence from Mr. Savino Del Degan, President Royalcliff Homes Inc. and Royalcliff Homes Bayview Inc. Item 7 Correspondence from Mr. Nik Mracic, Vice -President Metrus Development Inc. and A.S.O. of St. John's Road Development Corp. Additional Items page 2 April 28, 2009 Council Item 8 Correspondence from Mr. Nik Mracic, Vice -President Metrus Development Inc. and A.S.O. of Preserve Homes Corporation Item 9 Correspondence from Mr. Patrick O'Hanlon, President Kylemore (Bayview Meadows) Ltd. Item 10 Correspondence from Mr. Andrew De Gasperis, President Preserve Homes Corporation RECOMMENDED: THAT the correspondence be received and referred to item 1. Eastwood, Carrie To: Eastwood, Carrie Subject: FW: DEVELOPMENT CHARGES -ARTICLE IN THE THURSDAY APRIL 30, 2009 EDITION OF THE AURORA BANNER - Town Plans Development Charges Hike From: Stephen Dupuis Sent: Friday, May 01, 2009 12:11 PM To: Dillman, Paul Cc: Elliott, Dan; ]anzen, Cindy Subject: RE: DEVELOPMENT CHARGES - ARTICLE IN THE THURSDAY APRIL 30, 2009 EDITION OF THE AURORA BANNER - Town Plans Development Charges Hike Hi Cindy. Can you put me on the agenda please/thanks Subject: RE: DEVELOPMENT CHARGES - ARTICLE IN THE THURSDAY APRIL 30, 2009 EDITION OF THE AURORA BANNER - Town Plans Development Charges Hike The article indicates that the Building and Land Development Association is disappointed Aurora plans to increase development charges instead of lowering or freezing them as "some other GTA municipalities have done". ( Is it possible for you to provide us with a list of the those GTA municipalities that have either frozen or lowered their Development Charges? ) - Paul Dillman, AMCT From: Stephen Dupuis: OSHAWA -Proposed DECREASES for almost all of their unit types (14%singles/semis, 29% 1 bdrm apt., 17% non-res) MILTON -Proposed INCREASE of 6% (single -digit which we haven't seen in a while) PLUS their Council decided NOT to index in April. Had, they, the proposed charge would actually be a 3% decrease BURLINGTON -Decided NOT to index their development charge in April CLARINGTON -Has decided to EXTEND current phasing provisions of their charge. TORONTO --2 year freeze, potentially longer subject to level of building permit activity Durham Region — Council to decide shortly on recommendation not to index. 5/6/2009 Eastwood, Carrie Uelegaq.j ar3 (C) From: Eastwood, Carrie Sent: Wednesday, May 06, 2009 9:39 AM To: Eastwood, Carrie Subject: FW: Aurora - Delegation Request Form Importance: High Delegation Request for Special Council meeting -May 6, 2009 Name = Ed Warankie Subject = Update to Development Charges Address = Queen St. 14T Toronto GroupRepresented = The Daniels Corporation Purpose = Comments on Update to Development Charge report. Letter to be submitted by Remo Agostino of the Daniels Corporation, appearing in Rerno's absence. (at++a c ked( The Daniels Corporation 20 Queen Street West, Suite 3400 Toronto, Ontario M5H 3R3 Phone: (416) 598-2129 Fax: (416) 979-0415 May 6, 2009 Mayor and Members of Town Council Town of Aurora 100 John West Way Box No. 1000 Aurora, ON; L4G 6J1 Dear Madame Mayor and Members of Town Council: Re: Comments Update to Development Charges By-law Thank you for the opportunity to comment on the Town of Aurora's "Update to Development Charges By-law" report that will be before Town Council on May 6°t 2009. Unfortunately, I am not able to attend the public meeting and would like to provide some written comments. In my absence, Ed Warankie, Director of Development at The Daniels Corporation, will be attending this meeting to make a deputation before you. As many of you are aware, Daniels is the landowner of a parcel of land located on the southeast corner of Bay -view Avenue and St. John's ,Sideroad, Daniels has currently submitted applications to develop these lands for a'mix of semi-detached units, condominium townhouses and condominium garden/walk-up apartments. Our conunients in this Ietter are specifically related to the development charges for garden/walk-up apartments. Under the current and proposed Development Charges By-law, a garden/walk-up apartment is defined as. a Multiple Unit. The applicable development charge rate would be the same as a freehold or condominium townhouse unit. As presented to Council previously, Garden/Walk-up apartments are an innovative form of ground related housing that addresses Town policies for imensificationn and the provision of a diverse range of housing. Attached is a diagram from my previous presentation "a -which illustrates the structure of this form of housing. You may recall that the ground floor unit is a one storey (one bedroom) unit approsinnately 690 square feet in size. The two upper units are two storeys, two or three bedroom units with an average size of approximately 1,200 square feet. Under the proposed development charge by-law the one storey, one bedroom 700 square foot unit would pay the same development charges as a multiple townhouse unit. This represents an inequity as garden/walk-up apartments facilitate a more efficient use of municipal infrastructure and also generate lower populations, therefore reducing the demand on Town services. hn addition, applying the same development charge rate to a garden/walk-up apartment unit, as a townhouse unit, decreases the affordability for entry level market housing and will discourage developers from providing innovative housing forms: Madame Mayor and Members of Town Council Update to Development Charges By-law 5/5/2009 Recognizing the importance of promoting a diverse range of housing in Aurora, Daniels world like to propose that the Town of Aurora either: 1. Amend the definition of an apartment unit to recognize garden/walk-up apartment's as apartment units. This would require the removal of the requirement of all units being accessed by an internal corridor; or, 2. Introduce a development charge rate for small units to encourage innovative residential designs, which are not in an apartment format. Recognizing that smaller units do not burden municipal services like traditional townhomes, other municipalities in the Greaten Toronto Area, such as the City of Mississauga and the City of Brampton, have recognized the importance of innovative housing forms and have created a development charge rate for small units, irrespective on the form of housing. For example, the City of Mississauga applies a small unit development charge rate for any unit (irrespective of building form) that has a gross floor area of 70 square metres (750 square feet) or less. The City of Brampton defines an apartment as "a dwelling unit in a duplex, triplex, double duplex or in a mixed use building not exceeding three stories in height and a dwelling unit in a building kvlvere such dwelling unit is served by a principal entrance firoin the street level conunon- to three or -more other dwelling units ". This definition would include a garden/walls-up apartment, as such, the apartment development charge rates are applied to these units, Daniels would encourage that the Town of Artrora.further exannine either amending the . definition of an "apartment" to include garden/walk-up apartments or introduce a development charge, rate for small units (irrespective of housing form) in order to encourage innovative housing design and improve housing affordability for residential market units. . TIAnk you for the opportunity to provide comments on this matter. I would be pleased to meet with Town Council or Town staff to review this matter further. Yours truly, Remo Agostino, M.Sc.PI., MCIP, RPP Senior Manager of Development Cc: Clerks Department, Town. of Aurora. - - Marco Ramunno, Director o f Plann ing and Development Services