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
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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
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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)
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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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