City of Clarence-Rockland Development Charges Study Council Information Session

1. City of Clarence-Rockland Development Charges Study Council Information Session Tuesday, August 5th, 2014

2. Today We Will Discuss • Background • Clarence-Rockland DC Rate Structure • Development Forecast • Capital Programs • Preliminary Draft Proposed Rates • Rate Comparisons • Reasons for Rate Changes • Next Steps

3. Background • Council passed DC By-law 2010-47 on March 8th, 2010that imposes DC rates for eligible City services • Amendment By-law 2010-200 was passed on December 13th, 2010 • By-law’s five year life expires on March 8th, 2015 • City must pass new a by-law before expiry date in order to continue collecting DCs

4. What Are Development Charges? • Fees imposed on development to finance “growth-related” capital costs • Pays for new infrastructure and facilities to maintain service levels • Principle is “growth pays for growth” so that financial burden is not borne by existing tax/rate payers

5. DCs and Municipal Revenues • Development charges • Fund significant portion of growth-related capital costs • Direct developer contributions • Typically fund costs internal or related to a subdivision (i.e. local roads, water & sewer mains, sidewalks, streetlights) • Property taxes/Utility rates • Fund operating costs and long-term infrastructure repair, maintenance, and replacement

6. Study Process Anticipated amount, type and location of development must be estimated Development Forecast Increase in need may not exceed average level of service immediately preceding background study Calculate 10-Year Historical Service Levels Increase in the need for service attributable to the anticipated development must be estimated Identify Growth-related Capital Costs Reduce capital costs by legislated deductions Grants/Other Contributions Required Service Discount Replacement/ Benefit to Existing Available DC Reserves Post-Period Benefit Costs Eligible for DC Recovery Allocation of eligible costs by type of development Non-Residential Sector (per m2 of GFA) Residential Sector (per unit)

7. Clarence-Rockland DC Rate Structure 90% Eligible Services • Library Services • Daycare Services • Parks & Recreation • Public Works • Transit • By-law Services • General Government 100% Eligible Services • Fire Services • Roads & Related • Water • Sanitary Sewer

8. Ineligible Services • The Development Charges Act does not allow for the inclusion of: • Cultural and entertainment facilities, including museums, theatres and art galleries • Tourism facilities including convention centres • Parkland acquisition • Hospitals • Headquarters for general administration of municipalities and local boards • Waste management

9. Development Forecast • Historic service levels based on: • 2004 to 2013 • Capital planning periods: • General Services 2014 – 2023 • Engineered Services 2014 – 2023 • 10-year and build-out unit forecast based on information provided by Planning staff

10. Development Forecast

11. Development-Related Capital Programs • Capital programs have been compiled in consultation with City staff • Capital costs have been adjusted in accordance with DC legislation: • Capital grants & subsidies • Replacement/benefit to existing shares • 10% legislated discount for “soft services” • Available DC reserve funds • Post period benefit shares

12. What is a DC eligible project? • Any capital project that provides benefit to new development and expands the City’s servicing capacity • i.e. – water and sewer main extensions, building additions, new fleet acquisitions, new park features • Any “growth-related” debt, or negative DC reserve fund balances • Important to tie-in with capital budget and master plans

13. Maximum Permissible Funding Envelope • Maximum allowable charge for soft services based on average service levels provided in preceding 10 years (2004-2013) • Calculated by multiplying 10-year historic service level by the forecast growth in 10-year planning period • Establishes a development charges ceiling

14. Library Services • Bourget Branch Expansion • New collection materials, furniture and equipment

15. Fire Services • Past commitments: • Negative reserve fund balance • New projects: • Expansion of Rockland Fire Hall • Bourget Replacement and Training Centre Expansion • New Station #4 • Various Vehicle and Equipment Acquisitions

16. Daycare Services • New projects: • Various Equipment Acquisitions • Funded by available DC reserves

17. Parks and Recreation • Past commitments: • Debt Recovery from Clarence-Rockland Arena and Recreation Complex • New projects: • Bourget Train Station • New Community Space and Facilities • Various park amenities (6) • Various park and waterfront development

18. Public Works • Past commitments: • Negative Reserve Fund Balance • New projects: • Municipal Garage Expansion and Relocation • Garage Expansion • Snow Dump • Salt Storage Expansion • Various Fleet and Equipment Acquisitions

19. Transit • New projects: • Additional Bus Shelter • Additional Park and Ride at Ottawa Transit Connection

20. By-law Services • New projects: • New Dog Pound Facility • Additional Fleet and Equipment Acquisitions

21. General Government • Development-related studies: • Planning studies(12) • Development charge studies (2) • Recreation studies (2) • Public Works studies (1)

22. General Services Capital Program Summary Total Gross Cost ($millions) $ 29.09 Less: Grants & Subsidies $ 0.00 Less: Benefit to Existing Share $ 6.50 Less: 10% Discount $ 0.82 Less: Available Reserve Funds $ 0.69 Less: Post-2023 Benefit $ 12.54 DC Eligible Share $ 8.54

23. Roads and Related • Reconstructions • Intersection improvements • Traffic management • Engineering Studies

24. Water Services • Water Studies • Water Towers • Booster Pumping Stations

25. Wastewater Services • Biosolids Management • Wastewater Treatment Plant Expansion • Pumping Station Expansions • Additional Sanitary Sewers

26. Calculated Fully ServicedResidential DC Rate

27. Calculated Fully ServicedNon-Residential DC Rate

28. Current vs. Calculated Fully Serviced Residential Rate $/SDU * Current Roads and Related charge includes Engineering Studies

29. Current vs. Calculated Fully ServicedNon-Residential Rate $/Sq.M * Current Roads and Related charge includes Engineering Studies

30. Reasons for DC Rate Changes • Engineered Services • Previously calculated on a longer-term planning horizon (to 2031). Currently projecting only 10-years • Larger capital program to service 10-year development • Development Forecast • Residential 10-year and ultimate forecast projects more population and dwelling unit growth • Non-residential 10-year and ultimate forecast projects fewer employment numbers and less non-residential floor space

31. Residential Rate Comparison$/SDU

32. Non-Residential Rate Comparison$/Square Metre

33. Next Steps • Refine Capital Program • Advertise for statutory public meeting • Release DC Background Study and draft proposed by-law • Hold statutory public meeting • Council consideration of DC By-law