Report to: General Committee Report Date: April 20, 2009

SUBJECT: Town Wide Soft Development Charges – Public Notice of Development Charge Public Meeting

PREPARED BY: Kevin Ross, Ext 2126

RECOMMENDATION:

1) THAT the report on the “Town Wide Soft Development Charges – Public Notice of Development Charge Public Meeting” be received;

2) THAT Town staff be authorized to place a Public Notice advising of a Development Charge Public Meeting on May 26^th, 2009 as required by Section 12 of the Development Charges Act; and

3) AND THAT staff be directed to do all things necessary to give effect to this report.

EXECUTIVE SUMMARY:

Not applicable.

PURPOSE:

The purpose of this report is to request Council approval to hold a Development Charge Public meeting on May 26^th, 2009 to allow input from the development industry and the public on the Town Wide Soft background study currently being prepared.

BACKGROUND:

The Town Wide Soft development charge by-law expires on August 31, 2009 and a new by-law has to be passed in order to facilitate the continued collection of development charges. Staff has, in tandem with Hemson Consulting Inc., updated the Town’s inventory listing, prepared a preliminary growth-related capital program and calculated an initial development charge rate. This information has been shared with the development industry to facilitate discussion on the charges and methodology changes utilized in the update of the 2009 Town Wide Soft DC rates.

The schedule for the passage of the new Town Wide Soft development charge rates is based on attaining by-law approval at the June 3^rd Council meeting and is predicated on the following events being achieved:

· Second meeting with the Development Charges Sub-Committee on April 28th

· Meeting with the development industry on April 21^st

• Updates given to General Committee on April 20^th and May 4^th
• Finalization of the background study by May 12^th
• Holding of the Statutory Public Meeting on May 26^th
• Council Approval on June 3^rd

OPTIONS/DISCUSSION:

Staff met with the Development Charges Sub-Committee on April 7^th and presented the update to the Town Wide Soft Charges by-law. The update included details relating to 3 changes in methodology being proposed for the 2009 background study. The proposed changes are as follows:

1. Fleet Inventories

Current Methodology

• Rolling stock kept by the Town for 7 years is included in inventory

Recommended Methodology

• All rolling stock with an estimated useful life of 7 years or more is included in inventory

• Will result in an increase in the 10-year historical average service level which increases the amount of funding available through development charges

2. Residential/Non-Residential Allocation of Costs

Current Methodology

• General Government and Fire Services are allocated based on property assessment. Public Works is based on the population and employment forecast

Recommended Methodology

• General Government, Fire Services and Public Works to be based on future shares of the population and employment forecast

• Will result in a more appropriate allocation of costs across the categories

3. Population Forecast – Net vs Gross

Current Methodology – Net Population

• Forecast is based on the population in new homes (61,022) less reductions in existing population base (9,311) to arrive at the net population growth of 51,711

• The maximum funding envelope is based on the historical service level multiplied by net population growth

• The funding envelope is divided by the gross population growth (61,022) to establish a DC charge per capita

Recommended Methodology – Gross Population

• Forecast is based on population in new homes only (61,022)

• The maximum funding envelope is based on the historical service level multiplied by the gross population growth

• The larger funding envelope is divided by the gross population growth to establish a DC charge per capita

• Will result in a higher development charge which leads to an additional $26M being collected over the next 10 years

Staff was instructed to present the new development charges to the development industry inclusive of the impact of the proposed new methodologies and report back with input/concerns received from the developers.

Developers Breakout Group

Staff met with representatives of the development industry on April 9^th and discussed the changes in methodology and the new development charge rates. The issues raised by the developers included:

· Intensification development projects (e.g. mixed use proposals) should be provided some benefits in terms of lower DC rates

o There should be a lower DC rate for mixed-use development (combined residential and non-residential) versus a “box store” type development as mixed-use developments utilizes less land. The Developers Breakout Group felt a differentiated DC rate will encourage this type of development

· The proposed new gross population methodology does not accurately reflect the requirements for future services in the Town as the effects of “empty nesters” are not accounted for

· There was general concern about the increase in the DC rates given the downturn in the economy.

Staff are currently looking at options for offering a different non-residential rate for mixed-use development and will report on the feasibility of this option.

Preliminary work on the impact of phase-in options are currently being reviewed by staff. The review includes assessing the permanent loss in development charge revenue and the requirement of funding this revenue shortfall from non-DC sources.

Public Meeting

Before passing a development charge by-law, section 12 of the Development Charges Act, 1997 stipulates that Council shall hold as least one public meeting and provide at a minimum 20 days notice in advance of the meeting, with the proposed by-law and background study being made available at least two weeks prior to the meeting. In order to achieve the scheduled dates, Council approval to place the public notice is required by April 28^th and is being requested through this report.

FINANCIAL CONSIDERATIONS

The 2009 Town Wide Soft Services Development Charges will establish a maximum DC funding envelope for growth-related Town infrastructure related to studies, library services, indoor recreation, park development, public works facilities and fire services for the next 10 years.

The proposed residential development charges, compared to the current charges, are as follows:

The proposed non-residential development charges, compared to the current charges, are as follows:

ENVIRONMENTAL CONSIDERATIONS:

Not applicable.

ACCESSIBILITY CONSIDERATIONS:

Not applicable.

ENGAGE 21^ST CONSIDERATIONS:

Not applicable.

BUSINESS UNITS CONSULTED AND AFFECTED:

Not applicable.

RECOMMENDED BY:

________________________ ________________________

Barb Cribbett Andy Taylor

Treasurer Commissioner, Corporate Services