City of Port Colborne

Development Charges

Public Meeting

August 31, 2009

Public Meeting Purpose

The meeting is a mandatory requirement under the Development Charges Act

Prior to Council’s consideration of a by-law, a background study must be prepared and available to the public a minimum 14 days prior to a public meeting

Public meeting is to provide for a review of the DC proposal and to receive public input on the proposed policies and charges

2

Format for Public Meeting

DCA Public Meeting Opening remarks Presentation of the proposed policies and

charges Questions from Council Presentations by the Public Close Public Meeting

3

Study Process

Policy Review and discussions with Staff

Growth forecast

Detailed discussions with staff regarding future needs to service

growth (June 11, 2009)

Council Review of DCA Study (July 27, 2009)

Public Meeting (August 31, 2009)

o Council Consider By-law for adoption (subsequent to Public Meeting –

September 14, 2009)

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Development Charges

Purpose:

To recover the capital costs associated with residential and non-residential growth within the municipality

The capital costs are in addition to what costs would normally be constructed as part of a subdivision (i.e. internal roads, sewers, watermains, roads, sidewalks, streetlights, etc.)

Municipalities are empowered to impose these charges via the Development Charges Act (DCA)

5

Overview of DCA(simplified steps)

1. Identify amount, type and location of growth

2. Identify servicing needs to accommodate growth

3. Identify capital costs to provide services to meet the needs

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Overview of DCA(simplified steps)4. Deduct:

- Grants, subsidies and other contributions

- Benefit to existing development

- Statutory 10% deduction (soft services)

- Amounts in excess of 10 year historic service calculation

- DC Reserve funds (where applicable)

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Overview of DCA(simplified steps)

5. Net costs then allocated between residential and non-residential benefit

6. Net costs divided by growth to provide the DC charge

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Overview of DCAPolicy Matters

Exemptions:• Mandatory exemptions

– for industrial building expansions (may expand by 50% with no DC)

– May add up to 2 apartments for a single as long as size of home doesn’t double

– Add one additional unit in medium & high density buildings

– Upper/Lower Tier Governments and School Boards

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Overview of DCAPolicy Matters

Exemptions:• Discretionary exemptions

– Reduce in part or whole DC for types of development or classes of development (e.g. industrial or churches)

– May phase-in over time– Redevelopment credits to recognize what is being replaced

on site (not specific in the Act but provided by case law)

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Overview of Port Colborne’s Existing DCA Exemptions

a board of education; the municipality or local board thereof; The City or a local board thereof; The Corporation of the Region of Niagara or a local

board thereof; a non-residential farm building; Downtown Core Area and Main Street Gateway Industrial development on any ft² of GFA over 5,000 ft²

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Growth Forecast Increase

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10 Year 20 Year20 Year -

Urban2009 - 2019 2009 - 2029 2009-2029

(Net) Population Increase 2,261 4,135 3,703

Residential Unit Increase 1,085 2,100 1,900

Non-Residential Gross Floor Area Increase (ft²) 595,300 1,163,500 1,085,640

Source: Watson & Associates Economists Ltd. Forecast 2009

The 2009 Development Charge forecast provides for the following growth:

Measure

20 Year Housing Forecast

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Source: Historical housing activity (1999-2008) based on Statistics Canada building permits, Catalogue 64-001-XIB ¹Growth Forecast represents start year.

6168

3734

40

5346

34

23

66

75 75

115 115 115 115 115120 120 120 120 120

110 110 110 110 110

75 75 75

0

20

40

60

80

100

120

140

Ho

usi

ng

Un

its

Years

Historical Low Density Medium Density High Density Historical Average

Summary of Services Considered

City Wide Services:

Roads Services Public Works Services Fire Protection Services Outdoor Recreation Services Indoor Recreation Services Library Services Administration

Urban Area Services: Wastewater Services Water Services

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Increased Service Needs Attributable to Anticipated Development

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Increased Service Needs Attributable to Anticipated Development

Gross Capital Cost Estimate

Less Deductions*Potential DC

Recoverable Cost

Roads Services

Roads $16,478,000 $13,223,762 $3,254,238

Public Works Facilities 4,667,000 4,292,336 374,664

Public Works Rolling Stock 739,400 15,333 724,067

Fire Protection Services

Fire Facilities 2,700,000 2,393,306 306,694

Fire Vehicles 450,000 0 450,000

Firefighter Equipment 50,000 11,191 38,809

Outdoor Recreation Services

Parkland Development, Amenities and Trails 2,512,200 267,578 2,244,622

Parks and Recreation Vehicles and Equipment 78,500 8,418 70,082

Indoor Recreation Services

Recreation Facilities 34,333,300 32,087,560 2,245,740

Library Services

Library Facilities 0 0 0

Library Collection Materials 412,400 51,912 360,488

Administration

Growth Related Studies 640,000 336,562 303,438

Wastewater Services

Wastewater 1,598,000 1,153,000 445,000Water Services

Water 9,918,300 5,261,221 4,657,079

Total $74,577,100 $59,102,180 $15,474,920

* Other Deductions Include: Post Period Benefit, Benefit to Existing Development, Grants, Subsidies and Other Contributions Attributable to New Development (e.g. 10% Statutory Deduction)

Review of Calculated Charges

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Single-Detached Apartments Apartments Multiple

Dwelling & Semi- 2 Bedrooms + Bachelor & Dwellings

SERVICE Detached Dwelling 1 Bedroom

City-Wide Services

Roads Services $1,183 $720 $474 $821 $0.92 $0.74

Public Works Services 399 243 160 277 0.32 0.26

Fire Protection Services 308 188 123 214 0.19 0.15

Outdoor Recreation Services 2,274 1,384 911 1,578 0.20 0.16

Indoor Recreation Services 2,205 1,342 883 1,530 0.19 0.15

Library Services 354 216 142 246 0.03 0.02

Administration 206 125 83 143 0.17 0.14

Total City-Wide Services $6,929 $4,218 $2,776 $4,809 $2.02 $1.62

Urban Area Services

Wastewater Services 192 117 77 133 0.12 0.10

Water Services 2,001 1,218 802 1,389 1.26 1.01

Total Urban Area Services $2,193 $1,335 $879 $1,522 $1.38 $1.11

Total Rural Area $6,929 $4,218 $2,776 $4,809 $2.02 $1.62

Total Urban Area $9,122 $5,553 $3,655 $6,331 $3.40 $2.73

¹ Charge applicable on square footage of gross floor area constructed up to 5,000 square feet. Additional square footage beyond 5,000 square feet is exempt from payment of development charges.

RESIDENTIAL NON-RESIDENTIAL (per s.f. of Gross Floor

Area)

Commercial / Institutional

Industrial¹

Comparison of Current and Calculated Charges - Residential

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Service Current Calculated Difference

Roads Services $1,027 $1,183 $156

Public Works Services 161 399 238

Fire Protection Services 214 308 94

Outdoor Recreation Services 1,069 2,274 1,205

Indoor Recreation Services 1,168 2,205 1,037

Library Services 449 354 (95)

Administration 196 206 10

Wastewater Services 105 192 87

Water Services 753 2,001 1,248

Total $5,142 $9,122 $3,980

Comparison of Current and Calculated Charges – Commercial/Institutional

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Service Current Calculated Difference

Roads Services $0.61 $0.92 $0.31

Public Works Services 0.11 0.32 0.21

Fire Protection Services 0.14 0.19 0.05

Outdoor Recreation Services 0.05 0.20 0.15

Indoor Recreation Services 0.05 0.19 0.14

Library Services 0.03 0.03 0.00

Administration 0.13 0.17 0.04

Wastewater Services 0.05 0.12 0.07

Water Services 0.46 1.26 0.80

Total $1.63 $3.40 $1.77

Comparison of Current and Calculated Charges - Industrial

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Service Current Calculated Difference

Roads Services $0.47 $0.74 $0.27

Public Works Services 0.07 0.26 0.19

Fire Protection Services 0.12 0.15 0.03

Outdoor Recreation Services 0.04 0.16 0.12

Indoor Recreation Services 0.04 0.15 0.11

Library Services 0.03 0.02 -0.01

Administration 0.10 0.14 0.04

Wastewater Services 0.04 0.10 0.06

Water Services 0.38 1.01 0.63

Total $1.29 $2.73 $1.44

Development Charge Rates for Municipalities in the Port Colborne vicinity - Single Detached & Semi Detached Dwelling

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-

2,500

5,000

7,500

10,000

12,500

15,000

17,500

20,000

22,500

Upper Tier Lower Tier Education

Note: All development charge by-laws with the exception of Niagara-On-The-Lake expire in 2009. Niagara-On-The-Lake (NOTL) expires in 2014. - Pelham presented the above rates to Council in March 2009 for approval.and further adjustments are expected. - West Lincoln presented the above rates to Council on May 25th. - Lincoln rates were approved and in effect on June 1st. - Grimsby Proposed rates have been passed and will be in effect on September 1st, 2009- There are no Education Development Charges in Niagara Region

2009

$

Development Charge Rates for Municipalities in the vicinity of Port Colborne - Commercial/Retail DC’s Per Fully Serviced Ft². of GFA

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$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

$11.00

$12.00

$13.00

$14.00

$15.00

Upper Tier Lower Tier Education

Note: All development charge by-laws with the exception of Niagara-On-The-Lake expire in 2009. Niagara-On-The-Lake (NOTL) expires in 2014. - Pelham presented the above rates to Council in March 2009 for approval.and further adjustments are expected. - West Lincoln presented the above rates to Council on May 25th. - Lincoln rates were approved and in effect on June 1st. - Grimsby Proposed rates have been passed and will be in effect on September 1st, 2009- There are no Education Development Charges in Niagara Region

2009

$/s

q.ft

Development Charge Rates for Municipalities in the vicinity of Port Colborne - Industrial DC’s Per Fully Serviced Ft². of GFA

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$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

$11.00

$12.00

$13.00

$14.00

Upper Tier Lower Tier Education

Note: All development charge by-laws with the exception of Niagara-On-The-Lake expire in 2009. Niagara-On-The-Lake (NOTL) expires in 2014. - Pelham presented the above rates to Council in March 2009 for approval.and further adjustments are expected. - West Lincoln presented the above rates to Council on May 25th. - Lincoln rates were approved and in effect on June 1st. - Grimsby Proposed rates have been passed and will be in effect on September 1st, 2009- There are no Education Development Charges in Niagara Region

2009

$/s

q.ft

Phasing of Charges Option -

Staff has suggested a phasing of charges option based the following three options:

Option 1: 100% of the calculated rates;

Option 2: a similar phasing schedule as the Region of Niagara Development Charge By-law (passed on July 30, 2009);

Option 3: All Charges phased per Residential and Commercial/Institutional Option 2.

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Development Charge Phasing Options - % of Calculated Rates

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Option Option Details

Option 1 100% of Calculated Rate

Year 1 82% Year 1 82% Year 1 47%Year 2 87% Year 2 87% Year 2 47%Year 3 92% Year 3 92% Year 3 47%Year 4 97% Year 4 97% Year 4 47%Year 5 100% Year 5 100% Year 5 47%

Year 1 82%Year 2 87%Year 3 92%Year 4 97%Year 5 100%

Industrial

100%

Option 3All Charges phased per

Residential and Commercial/Institutional Option 2

Same as Option 2 Same as Option 2

Residential

100%

Option 2Similar Phasing as Region of

Niagara

Commercial/Institutional

100%

Development Charge Rates per Phasing Options

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Option Option Details

Option 1 100% of Calculated Rate

Year 1 $7,490 Year 1 $2.79 Year 1 $1.29Year 2 $7,956 Year 2 $2.97 Year 2 $1.29Year 3 $8,422 Year 3 $3.14 Year 3 $1.29Year 4 $8,891 Year 4 $3.31 Year 4 $1.29Year 5 $9,122 Year 5 $3.40 Year 5 $1.29

Year 1 $2.24Year 2 $2.38Year 3 $2.52Year 4 $2.66Year 5 $2.73

Option 2Similar Phasing as Region of

Niagara

Option 3All Charges phased per

Residential and Commercial/Institutional Option 2

Same as Option 2 Same as Option 2

Residential - Single Family Dwelling

Commercial/Institutional (rate per ft² of gross floor

area)

Industrial (rate per ft² of gross floor area)

$9,122 $3.40 $2.73

Development Charge Revenue Loss per Phasing Options

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Note: For Industrial, this represents 100% of the gross floor area and does not take into account the existing exemption for industrial development over 5,000 ft² per building permit.

Option Option Details

Option 1 100% of Calculated Rate

Option 2Similar Phasing as Region

of Niagara

Option 3

All Charges phased per Residential and

Commercial/Institutional Option 2

$50,702 $126,144 $507,440

Same as Option 2 Same as Option 2 $19,552 $400,848

Total

$0$0 $0 $0

$330,594

ResidentialCommercial /

InstitutionalIndustrial

Next Steps Based upon input received from the public,

Council will consider adoption of a by-law; Council will need to decide on:

Discretionary Exemptions: a non-residential farm building; Downtown Core Area and Main Street Gateway Industrial development on any ft² of GFA over 5,000 ft²

Phasing Options: Option 1: 100% of Calculated Rate Option 2: Similar Phasing as Region of Niagara Option 3: All Charges phased per Residential and

Commercial/Institutional Option 2

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