HomeMy WebLinkAbout16 080 Municipality of Kincardine Development Charges By-law 2016 THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
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BY -LAW
BY -LAW NO. 2016 - 080
A BY -LAW TO ESTABLISH DEVELOPMENT CHARGES
FOR THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
WHEREAS subsection 2(1) of the Development Charges Act, 1997 c. 27
(hereinafter called "the Act ") provides that the council of a municipality may pass
By -laws for the imposition of development charges against land for increased
• capital costs required because of the need for services arising from development
in the area to which the by -law applies;
AND WHEREAS the Council of The Corporation of the Municipality of Kincardine
( "Municipality of Kincardine ") has given Notice in accordance with Section 12 of
the Development Charges Act, 1997, of its intention to pass a by -law under Section
2 of the said Act;
AND WHEREAS the Council of the Municipality of Kincardine has heard all
persons who applied to be heard no matter whether in objection to, or in support
of, the development charge proposal at a public meeting held on June 8, 2016;
AND WHEREAS the Council of the Municipality of Kincardine had before it a report
entitled Development Charges Background Study dated May 6, 2016 (the "Study ")
prepared by Hemson Consulting Ltd., wherein it is indicated that the development
of any land within the Municipality of Kincardine will increase the need for services
as defined herein;
1111 AND WHEREAS the Council of the Municipality of Kincardine on July 6, 2016
approved the applicable Development Charges Background Study, dated May 6,
2016, in which certain recommendations were made relating to the establishment
of a development charge policy for the Municipality of Kincardine pursuant to the
Development Charges Act, 1997;
AND WHEREAS by resolution adopted by Council of The Corporation of the
Municipality of Kincardine on July 6, 2016, Council determined that the increase in
the need for services attributable to the anticipated development as contemplated
in the Development Charges Background Study dated May 6, 2016, as amended
including any capital costs, will be met by updating the capital budget and forecast
for the Municipality, where appropriate.
AND WHEREAS by Resolution adopted by Council on July 6, 2016, Council
approved the Study and determined that no further public meetings were required
under Section 12 of the Act;
•
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AND WHEREAS by resolution adopted by Council of The Corporation of the
Municipality of Kincardine on July 6, 2016, Council determined that the future
• excess capacity identified in the Development Charges Background Study dated
May 6, 2016, shall be paid for by the development charges contemplated in the
said development Charges Background Study, or other similar charges;
AND WHEREAS the Council of the Municipality of Kincardine has given
consideration of the use of more than one development charge by -law to reflect
different needs for services in different areas, also known as area rating or area
specific DCs, and has determined that for the services, and associated
infrastructure proposed to be funded by DCs under this by -law, that it is fair and
reasonable that the charges be calculated on a municipal -wide uniform basis;
AND WHEREAS the Development Charges Background Study dated May 6, 2016
includes an Asset Management Plan that deals with all assets whose capital costs
are intended to be funded under the development charge by -law and that such
assets are considered to be financially sustainable over their full life- cycle.
AND WHEREAS the Council of the Municipality of Kincardine will give
consideration to incorporate the asset management plan outlined in the
111 Development Charges Background Study within the Municipality's ongoing
practices and corporate asset management strategy.
NOW THEREFORE the Council of The Corporation of the Municipality of
Kincardine ENACTS as follows:
DEFINITIONS
1. In this by -law,
(1) "Act" means the Development Charges Act, 1997, c. 27;
(2) "Agricultural use" means a bona fide farming operation;
(3) "Apartment dwelling" means any dwelling unit within a building
containing more than four dwelling units where the units are
connected by an interior corridor;
• (4) "Board of education" means a board defined in s.s. 1(1) of the
Education Act;
(5) "Bona Fide Farm Use" means the proposed development will qualify
as a farm business operating with a valid Farm Business Registration
Number issued by the Ontario Ministry of Agriculture, Food and Rural
Affairs and be assessed in the Farmland Realty Tax Class by the
Municipal Property Assessment Corporation;
(6) "Building" means a structure consisting of a wall, roof, and floor or
any of them or a structural system servicing the function thereof, and
includes, but is not limited to, an above grade storage tank,
airsupported structures and industrial tents
(7) "Building Code Act" means the Building Code Act, R.S.O. 1992, as
amended;
• (8) "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,
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(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, lease, construct or improve facilities including,
(i) rolling stock with an estimated useful life of seven years
or more,
(ii) furniture and equipment, other than computer
equipment, and
(iii) materials acquired for circulation, reference or
information purposes by a library board as defined in
the Public Libraries Act, 1984, S.O. 1984, c. 57, and
(e) to undertake studies in connection with any of the matters
referred to in clauses (a) to (d);
(f) to complete the development charge background study under
Section 10 of the Act;
(g) as interest on money borrowed to pay for costs in (a) to (d);
required for provision of services designated in this by -law within or
outside the municipality.
(9) "Council" means the Council of The Corporation of the Municipality
of Kincardine;
(10) "Development" means any activity or proposed activity in respect of
land that requires one or more of the actions referred to in section 7
• of this by -law and including the redevelopment of land or the
redevelopment, expansion, extension or alteration of a use, building
or structure except interior alterations to an existing building or
structure which do not change or intensify the use of land;
(11) "Development charge" means a charge imposed pursuant to this By-
law;
(12) "Dwelling unit" means a room or suite of rooms used, or designed or
intended for use by, one person or persons living together, in which
culinary and sanitary facilities are provided for the exclusive use of
such person or persons;
(13) "Farm building" means a building or structure actually used as part
of or in connection with a bona fide farming operation and includes
barns, silos and other buildings or structures ancillary to a bona fide
farming operation, but excluding a residential use;
(14) "Garden Suite" means a detached single storey residential dwelling
unit accessory to a principal residence that offers alternative
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accommodation to a senior or disabled family member, and is
removable
• (15) "Grade" means the average level of finished ground adjoining a
building or structure at all exterior walls;
(16) "Gross floor area" means the sum total of the total areas of all floors
in a building or structure whether at 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 two
uses or from the outside edge of a floor where the outside edge of
the floor does not meet an exterior or common wall, and:
(a) includes the floor area of a mezzanine atrium or air supported
structure and the space occupied by interior wall partitions; and
(b) where a building or structure does not have any walls the gross
floor area of the building or structure shall be the total of the area of
all floors including the ground floor that are directly beneath the roof
of the building or structure.
(17) "Industrial Building" means a building used for or in connection with,
(a) manufacturing, producing, processing, storing or distributing
something,
(b) research or development in connection with manufacturing,
producing or processing something,
(c) retail sales by a manufacturer, producer or processor of
something they manufactured, produced or processed, if the
retail sales are at the site where the manufacturing, production,
or processing takes place,
(d) office or administrative purposes, if they are,
(i) carried out with respect to manufacturing, producing,
processing, storage or distributing of something, and
(ii) in or attached to the building or structure used for that
manufacturing, producing, processing, storage or
411 distribution.
(18) "Institution" means any land, building, structure, or part thereof, used
by any organization, group, corporation or association, for the
promotion of charitable, educational, religious or benevolent
objectives and not for profit or gain;
(19) "Local board" means a public utility commission, public library board,
local board of health, or any other board, commission, committee or
body or local authority established or exercising any power or
authority under any general or special Act with respect to any of the
affairs or purposes of the municipality or any part or parts thereof;
(20) "Local services" means those services or facilities 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, required as
a condition of approval under s.51 of the Planning Act, or as a
• condition of approval under s.53 of the Planning Act;
(21) "Major office" means a building primarily used for offices that
comprises a total gross floor area exceeding 25,000 square feet;
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(22) "Municipality" means The Corporation of the Municipality of
• Kincardine;
(23) "Multiple dwelling" means all dwellings other than single detached
dwellings, semi - detached dwellings, and apartment dwellings;
(24) "Non- profit housing" means housing which is or is intended to be
offered primarily to persons or families of low income on a leasehold
or co- operative basis and which is owned or operated by i) a non-
profit corporation being a corporation, no part of the income of which
is payable to or otherwise available for the personal benefit of a
member or shareholder thereof; or ii) a non - profit housing co-
operative having the same meaning as in the Co- operative
Corporations Act, R.S.O. 1990, c.C.35, as amended
(25) "Non- residential uses" means a building or structure used for other
than a residential use;
(26) "Official plan" means the Official Plan of the Municipality of
Kincardine and any amendments thereto;
(27) "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;
(28) "Place of worship" means a building or structure, or part thereof, that
is exempt from taxation as a place of worship pursuant to paragraph
3 of the Assessment Act, R.S.O. 1990, c. A. 31, as amended, or
successor legislation;
(29) "Planning Act" means the Planning Act, 1990, R.S.O. 1990, c.1, as
amended;
(30) "Row dwelling" means a building containing three or more attached
dwelling units in a single row, each of which dwelling units has an
• independent entrance from the outside and is vertically separated
from any abutting dwelling unit;
(31) "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 a residential use to
a non - residential use or from a non - residential use to a residential
use, or changing a building or structure from one form of residential
use to another form of residential use or from one form of non-
residential use to another form of non - residential use;
(32) "Regulation" means any regulation made pursuant to the Act;
(33) "Residential uses" means lands, buildings or structures or portions
thereof used, or designed or intended for use as a home or residence
of one or more individuals, and shall include a single detached
• dwelling, a semi - detached dwelling, a multiple dwelling, an
apartment dwelling, and the residential portion of a mixed -use
building or structure;
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(34) "Semi- detached dwelling" means a building divided vertically into two
dwelling units each of which has a separate entrance and access to
• grade;
(35) "Service" means services set out in Schedule "A" to this By -law, and
"services" shall have a corresponding meaning;
(36) "Single detached dwelling" means a completely detached building
containing only one dwelling unit.
DESIGNATION OF SERVICE
2. It is hereby declared by the Council of the Municipality that all development
and redevelopment of land within the Municipality will increase the need for
services.
3. (1) The categories of service for which development charges are imposed
under this By -law are as follows:
a) Cemetery
b) Parks and Recreation
c) Public Works & Municipal Fleet
d) Fire Services
e) Waste Management
f) General Government
g) Roads and Related
h) Water
i) Wastewater
3. (2) A development charge shall include:
a) a charge in respect of Cemetery
b) a charge in respect of Parks and Recreation
c) a charge in respect of Public Works & Municipal Fleet
d) a charge in respect of Fire Services
• e) a charge in respect of Waste Management
f) a charge in respect of General Government
g) a charge in respect of Roads and Related
h) if Water service is available, a charge in respect of Water; and
i) if Wastewater service is available, a charge in respect of
Wastewater.
CALCULATION OF DEVELOPMENT CHARGES
4. (1) Subject to the provisions of this By -law, development charges
against land in the municipality shall be imposed, calculated and
collected in accordance with the base rates set out in Schedules "B ",
"C ", "D ", "E ", and "F ", which relate to the services set out in Schedule
„
(2) The development charge with respect to the use of any land,
buildings or structures shall be calculated as follows:
• h case of residential development or redevelopment, (a) int the p p , or a
residential portion of a mixed -use development or
redevelopment, the sum of the product of the number of
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dwelling units of each type multiplied by the corresponding
total amount for such dwelling unit type, as set out in
• Schedules "B ", "C ", "D ", "E ", and "F"
(b) in the case of non - residential development or redevelopment,
or a non - residential portion of a mixed -use development or
redevelopment, the development charge shall be the gross
floor area of such area multiplied by the corresponding total
dollar amount per square metre of gross floor area, as set out
in Schedules "B ", "C ", "D ", "E ", and "F"
(3) Council hereby determines that the development or redevelopment
of land, buildings or structures for residential and non - residential
uses will require the provision, enlargement or expansion of the
services referenced in Schedule "A ".
PHASE -IN OF DEVELOPMENT CHARGES AND TRANSITION PROVISIONS
• 5. (1) The development charges imposed pursuant to this by -law are being
phased -in pursuant to Schedules "B ", "C ", "D ", "E ", and "F ", subject
to the exemptions and indexing provision herein, from the effective
date of this by -law.
APPLICABLE LANDS
6. (1) Subject to Sections 5 and 6, this by -law applies to all lands in the
municipality, whether or not the land or use is exempt from taxation
under Section 3 of the Assessment Act, R.S.O. 1990, c.A.31.
(2) This by -law shall not apply to land that is owned by and used for the
purposes of:
(a) a board of education;
(b) any municipality or local board thereof;
411 (c) non - residential development that is smaller than 232 square
metres in gross floor area;
(d) residential developments located in the Municipality, provided
that:
i. the development has received Federal, Provincial or
County government funding or subsidies for the
provision of affordable housing development or is
constructed by Habitat for Humanity or any other non-
profit housing provider and that the dwelling units are
being made available at values that are initially and will
continue to be below current market levels in the
Municipality.
(e) any non - residential industrial development;
• (f) any non - residential institutional development;
(g) non - residential farm buildings;
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(h) major office development;
• (i) current developments that have a Subdivision Agreement in
place and are required to pay the current capital and reserve
charge for water and wastewater.
RULES WITH RESPECT TO EXEMPTIONS FOR INTENSIFICATION OF
EXISTING HOUSING
7. (1) Notwithstanding Section 4 above, no development charge shall be
imposed with respect to developments or portions of developments
as follows:
(a) the enlargement of an existing residential dwelling unit;
(b) the creation of one or two additional residential dwelling units
in an existing single detached dwelling where the total gross
floor area of each additional unit does not exceed the gross
• floor area of the existing dwelling unit;
(c) the creation of one additional dwelling unit in any other
existing residential building provided the gross floor area of
the additional unit does not exceed the smallest existing
dwelling unit already in the building.
(2) Notwithstanding subsection 7(1)(b), development charges shall be
calculated and collected in accordance with Schedule "B" where the
total residential gross floor area of the additional one or two dwelling
units is greater than the total gross floor area of the existing single
detached dwelling unit.
(3) Notwithstanding subsection 7(1)(c), development charges shall be
calculated and collected in accordance with Schedule "B" where the
additional dwelling unit has a residential gross floor area greater
than,
• (a) in the case of semi - detached house or multiple dwelling, the
gross floor area of the smallest existing dwelling unit, and
(b) in the case of any other residential building, the residential
gross floor area of the smallest existing dwelling unit.
DEVELOPMENT CHARGES IMPOSED
8. (1) Subject to subsection (2), development charges shall be calculated
and collected in accordance with the provisions of this by -law and be
imposed on land to be developed for residential and non - residential
use, where, the development requires:
(i) the passing of a zoning by -law or an amendment thereto
under Section 34 of the Planning Act, R.S.O. 1990, c.P. 13;
• ( ii ) the approval of a minor variance under Section 45 of the
Planning Act, R.S.O. 1990, c. P.13;
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(iii) a conveyance of land to which a by -law passed under
subsection 49(7) of the Planning Act, R. S.O. 1990, c.P.13
• applies;
(iv) the approval of a plan of subdivision under Section 51 of the
Planning Act, R.S.O. 1990, c.P. 13;
(v) a consent under Section 53 of the Planning Act, R.S.O. 1990,
c.P. 13;
(vi) the approval of a description under Section 50 of the
Condominium Act, R.S.O. 1980, c.84; or
(vii) the issuing of a permit under the Building Code Act, in relation
to a building or structure.
(2) Subsection (1) shall not apply in respect to:
• (a) local services installed or paid for by the owner within a plan
of subdivision or within the area to which the plan relates, as
a condition of approval under Section 51 of the Planning Act,
R.S.O. 1990, c.P. 13;
(b) local services installed or paid for by the owner as a condition
of approval under Section 53 of the Planning Act, R.S.O.
1990, c.P. 13.
LOCAL SERVICE INSTALLATION
9. Nothing in this by -law prevents Council from requiring, as a condition of an
agreement under Section 51 or 53 of the Planning Act that the owner, at his
or her own expense, shall install or pay for such local services, within the
Plan of Subdivision or within the area to which the plan relates, as Council
may require.
MULTIPLE CHARGES
10. (1) Where two or more of the actions described in subsection 8(1) are
required before land to which a development charge applies can be
developed, only one development charge shall be calculated and
collected in accordance with the provisions of this by -law.
(2) Notwithstanding subsection (1), if two or more of the actions
described in subsection 8(1) occur at different times, and if the
subsequent action has the effect of increasing the need for municipal
services as set out in Schedule "A ", an additional development
charge on the additional residential units and non - residential floor
area, shall be calculated and collected in accordance with the
provisions of this by -law.
SERVICES IN LIEU
• 11. (1) Council may authorize an owner, through an agreement under
Section 38 of the Act, to substitute such part of the development
charge applicable to the owner's development as may be specified
in the agreement, by the provision at the sole expense of the owner,
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of services in lieu. Such agreement shall further specify that where
the owner provides services in lieu in accordance with the
agreement, Council shall give to the owner a credit against the
development charge in accordance with the agreement provisions
and the provisions of Section 39 of the Act, equal to the reasonable
cost to the owner of providing the services in lieu. In no case shall
the agreement provide for a credit which exceeds the total
development charge payable by an owner to the municipality in
respect of the development to which the agreement relates.
(2) In any agreement under subsection 11(1), Council may also give a
further credit to the owner equal to the reasonable cost of providing
services in addition to, or of a greater size or capacity, than would be
required under this by -law.
(3) The credit provided for in subsection 11 (2) shall not be charged to
any development charge reserve fund.
II) RULES WITH RESPECT TO RE- DEVELOPMENT
12. In the case of the demolition of all or part of a residential or non - residential
building or structure:
(1) a credit shall be allowed, provided that the land was improved by
occupied structures within the five years prior to the issuance of the
building permit, and the building permit has been issued for the
development or redevelopment within five years from the date the
demolition permit has been issued; and
(2) if a development or redevelopment involves the demolition of and
replacement of a building or structure, or the conversion from one
principal use to another, a credit shall be allowed equivalent to:
(a) the number of dwelling units demolished /converted multiplied
by the applicable residential development charge in place at
• the time the development charge is payable, and /or
(b) the gross floor area of the building demolished /converted
multiplied by the current non - residential development charge
in place at the time the development charge is payable.
13. A credit can, in no case, exceed the amount of the development charge that
would otherwise be payable, and no credit is available if the existing land
use is exempt under this by -law.
TIMING OF CALCULATION AND PAYMENT
14. (1) Development charges shall be calculated and payable in full in
money or by provision of services as may be agreed upon, or by
credit granted and defined by various references in the Development
Charges Act, on the date that the first building permit is issued in
relation to a building or structure on land to which a development
• charge applies.
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(2) Where development charges apply to land in relation to which a
building permit is required, the building permit shall not be issued
• until the development charge has been paid in full.
(4) Notwithstanding subsection (1), the development charge shall be
payable with respect to an approval of a plan of subdivision under
Section 51 or the Planning Act immediately upon entering into an
agreement and with respect to a consent under Section 53 of the
Planning Act, immediately upon entering into a consent agreement
and prior to final approval of the consent.
RESERVE FUNDS
15. (1) Monies received from payment of development charges under this
by -law shall be maintained in separate reserve funds as per the
service set out in Schedule "A ".
• (2) Monies received for the payment of development charges shall be
used only in accordance with the provisions of Section 35 of the Act.
(3) Where any development charge, or part thereof, remains unpaid
after the due date, the amount unpaid shall be added to the tax roll
and shall be collected as taxes.
(4) Where any unpaid development charges are collected as taxes
under subsection (3), the monies so collected shall be credited to the
development charge reserve funds referred to in subsection (1).
(5) The Treasurer of the municipality shall, in each year, furnish to
council a statement in respect of the reserve funds established
hereunder for the prior year, containing the information set out in
section 43 of the Act and section 12 of O.Reg. 82/98.
BY -LAW AMENDMENT OR APPEAL
• 16. (1) Where this by -law or any development charge prescribed thereunder
is amended or repealed either by order of the Ontario Municipal
Board or by resolution of the Municipal Council, the Municipal
Treasurer shall calculate forthwith the amount of any overpayment
to be refunded as a result of said amendment or repeal.
(2) Refunds that are required to be paid under subsection 16(1) shall be
paid with interest to be calculated as follows:
(a) Interest shall be calculated from the date on which the
overpayment was collected to the date on which the refund is
paid;
(b) The Bank of Canada interest rate in effect on the date of
enactment of this by -law shall be used.
• (3) Refunds that are required to be paid under subsection 16(1) shall
include the interest owed under this section.
BY -LAW INDEXING
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17. The development charges set out in Schedules "B ", "C ", "D ", "E ", and "F" to
III this by -law shall be adjusted annually, as of January 1, 2017, without
amendment to this by -law, in accordance with the most recent twelve -month
change in the Statistics Canada Quarterly, "Construction Price Statistics ",
Catalogue Number 62 -007.
SEVERABILITY
18. In the event any provision, or part thereof, of this by -law is found by a court
of competent jurisdiction to be ultra vires, such provision, or part thereof,
shall be deemed to be severed, and the remaining portion of such provision
and all other provisions of this by -law shall remain in full force and effect.
HEADINGS FOR REFERENCE ONLY
19. The headings inserted in this by -law are for convenience of reference only
and shall not affect the construction or interpretation of this by -law.
III BY -LAW REGISTRATION
20. A certified copy of this by -law may be registered on title to any land to which
this by -law applies.
BY -LAW ADMINISTRATION
21. This by -law shall be administered by the Municipal Treasurer.
SCHEDULES TO THE BY -LAW
22. The following Schedules to this by -law form an integral part of this by -law:
Schedule "A" - Designated Municipal Services Under this By -Law
Schedule "B" - Development Charges effective the date the by -law
comes into force to December 31, 2016
111 Schedule "C "- Development Charges effective January 1, 2017 to
December 31, 2017
Schedule "D"- Development Charges effective January 1, 2018 to
December 31, 2018
Schedule "E" - Development Charges effective January 1, 2019 to
December 31, 2019
Schedule "F" - Development Charges effective January 1, 2020 to the
expiry of the by -law
DATE BY -LAW EFFECTIVE
23. This By -law shall come into force and effect on July 13, 2016.
DATE BY -LAW EXPIRES
24. This By -law expires five years after the day on which it comes into force.
III
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SHORT TITLE
• 25. This by -law may be cited as the "Municipality of Kincardine Development
Charges By -law, 2016"
READ a FIRST and SECOND TIME this 6th day of July, 2016.
READ a THIRD TIME and FINALLY PASSED this 6th day of July, 2016.
Mayor Clerk
•
•
•
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SCHEDULE "A"
TO BY -LAW NO. 2016 - 080
DESIGNATED MUNICIPAL SERVICES UNDER THIS BY -LAW
1. Cemetery
2. Parks and Recreation
3. Public Works & Municipal Fleet
4. Fire Services
5. Waste Management
6. General Government
7. Roads & Related
• 8. Water
9. Wastewater
•
•
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SCHEDULE "B"
TO BY -LAW NO. 2016 - 080
• SCHEDULE OF DEVELOPMENT CHARGES EFFECTIVE THE DATE THE BY-
LAW COMES INTO FORCE TO DECEMBER 31, 2016
Residential Charge By Unit Type Non - Residential
Charge Per
Service Singles & Rows & Other Apartments Square Metre of
Semis Multiples Gross Floor Area
Airport $0 $0 $0 $0.00
Cemetery $25 $17 $13 $0.00
r
Parks And Recreation $1,436 $997 $732 $0.00
Public Works & Municipal Fleet $602 $419 $307 $3.03
Fire Services $365 $254 $186 $1.83
Waste Management $43 $30 $22 $0.00
General Government $107 $74 $55 $0.54
Subtotal General Services $2,578 $1,791 $1,315 $5.40
• Roads And Related $942 $655 $481 $4.67
Water $1,459 $1,014 $745 $7.25
Wastewater $3,847 $2,674 $1,963 $19.07
Subtotal Engineered Services $6,248 $4,343 $3,189 $30.99
TOTAL CHARGE PER UNIT I $8,826 $6,134 $4,504 $36.39
Note: Garden Suites be charged the Apartment Rate
III
III
Page 16 of 19
Municipality of Kincardine Development Charges By -law, 2016
By -law No. 2016 - 080
SCHEDULE "C"
TO BY -LAW NO. 2016 - 080
• SCHEDULE OF DEVELOPMENT CHARGES EFFECTIVE JANUARY 1, 2017 TO
DECEMBER 31, 2017
Residential Charge By Unit Type Non - Residential
Service Singles & Rows & Other Charge Per
Semis Multiples Apartments Square Metre of
Gross Floor Area
Airport $0 $0 $0 $0.000
Cemetery $28 $19 $14 $0.000
Parks And Recreation $1,630 $1,124 $832 $0.000
Public Works & Municipal Fleet $684 $472 $349 $3.33
Fire Services $414 $286 $211 $2.01
Waste Management $49 $34 $25 $0.00
General Government $122 $84 $62 $0.59
Subtotal General Services $2,927 $2,019 $1,493 $5.93
• Roads And Related $1,069 $738 $546 $5.13
Water $1,657 $1,143 $845 $7.96
Wastewater $4,369 $3,015 $2,230 $20.93
Subtotal Engineered Services $7,095 $4,896 $3,621 $34.02
TOTAL CHARGE PER UNIT I $10,022 $6,915 $5,114 $39.95
Note: Garden Suites be charged the Apartment Rate
III
III
Page 17 of 19
Municipality of Kincardine Development Charges By -law, 2016
By -law No. 2016 - 080
SCHEDULE "D"
TO BY -LAW NO. 2016 - 080
III SCHEDULE OF DEVELOPMENT CHARGES EFFECTIVE JANUARY 1, 2018 TO
DECEMBER 31, 2018
Residential Charge By Unit Type Non - Residential
Service Singles & Rows & Other Charge Per
Semis Multiples Apartments Square Metre of
Gross Floor Area
Airport $0 $0 $0 $0.00
Cemetery $32 $22 $16 $0.00
Parks And Recreation $1,824 $1,251 $931 $0.00
Public Works & Municipal Fleet $765 $525 $391 $3.62
Fire Services $464 $318 $237 $2.19
Waste Management $55 $38 $28 $0.00
General Government $136 $93 $69 $0.64
Subtotal General Services $3,276 $2,247 $1,672 $6.45
III Roads And Related $1,197 $821 $611 $5.59
Water $1,855 $1,272 $946 $8.67
Wastewater $4,889 $3,355 $2,495 $22.80
Subtotal Engineered Services $7,941 $5,448 $4,052 $37.06
TOTAL CHARGE PER UNIT I $11,217 $7,696 $5,724 $43.51
Note: Garden Suites be charged the Apartment Rate
•
•
Page 18 of 19
Municipality of Kincardine Development Charges By -law, 2016
By -law No. 2016 - 080
SCHEDULE "E"
TO BY -LAW NO. 2016 - 080
• SCHEDULE OF DEVELOPMENT CHARGES EFFECTIVE JANUARY 1, 2019 TO
DECEMBER 31, 2019
Residential Charge By Unit Type Non - Residential
Service Singles & Rows & Other Charge Per
Semis Multiples Apartments Square Metre of
Gross Floor Area
Airport $0 $0 $0 $0.00
Cemetery $35 $24 $18 $0.00
Parks And Recreation $2,018 $1,378 $1,030 $0.00
Public Works & Municipal Fleet $847 $578 $432 $3.91
Fire Services $513 $350 $262 $2.37
Waste Management $61 $42 $31 $0.00
General Government $151 $103 $77 $0.70
Subtotal General Services $3,625 $2,475 $1,850 $6.98
III Roads And Related $1,325 $905 $676 $6.05
Water $2,052 $1,401 $1,047 $9.38
Wastewater $5,411 $3,695 $2,761 $24.66
Subtotal Engineered Services $8,788 $6,001 $4,484 $40.09
TOTAL CHARGE PER UNIT I $12,413 $8,476 $6,334 $47.07
Note: Garden Suites be charged the Apartment Rate
•
III
1
Page 19 of 19
Municipality of Kincardine Development Charges By -law, 2016
By -law No. 2016 - 080
SCHEDULE "F"
TO BY -LAW NO. 2016 - 080
• SCHEDULE OF DEVELOPMENT CHARGES EFFECTIVE JANUARY 1, 2020 TO
THE EXPIRY OF THE BY -LAW
Residential Charge By Unit Type Non - Residential
Service Singles & Rows & Other Charge Per
Semis Multiples Apartments Square Metre of
Gross Floor Area
Airport $0 $0 $0 $0.00
Cemetery $38 $26 $20 $0.00
Parks And Recreation $2,213 $1,505 $1,129 $0.00
Public Works & Municipal Fleet $929 $632 $474 $4.21
Fire Services $562 $383 $287 $2.55
Waste Management $67 $45 $34 $0.00
General Government $165 $112 $84 $0.75
Subtotal General Services $3,974 $2,703 $2,028 $7.51
III Roads And Related $1,452 $988 $741 $6.50
Water $2,250 $1,531 $1,148 $10.09
Wastewater $5,932 $4,035 $3,027 $26.53
Subtotal Engineered Services $9,634 $6,554 $4,916 $43.12
TOTAL CHARGE PER UNIT I $13,608 $9,257 $6,944 $50.63
Note: Garden Suites be charged the Apartment Rate
I
1
1111
Ill
4 _
6. Development Charges
JUNE 08, 2016
Public Meeting
Municipality of Kincardine Item ` °°W 6 - 1) dl
Development Charges Study
g Y
Statutory Public Meeting
' 1 ..:
:11 1 1 1 1 1 1 (
\ • 4 ; q ' 'ty
Wednesday, June 8th, 2016
` J` NIC I Pt1
HEMSON
0, ,,u1! in}; I td. LQNCAITINE
Today We Will Discuss
• Development Charges Overview
• Background & Study Process
• Development Forecast
• Capital Program Summary
• Calculated Development Charge Rates
• DC By -law Policy
• Next Steps
HEMSON
What Are Development Charges?
• Fees imposed on development to fund
"growth- related" capital costs
• DCs pay 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
HEMSON
Development Charge Context
• Development Charges
- Fund a share of the capital cost of expanding municipal
infrastructure to service the needs arising from new development
• Direct developer contributions
- Infrastructure required as part of a subdivision agreement
• i.e. internal roads, sidewalks, streetlights, small water /sewer mains, park
elements etc.
• Property taxes and utility rates
- Long -term repair and replacement of infrastructure
- Statutory and non - statutory reductions on DCs
- Ineligible infrastructure
HEMSON
ill
Background
• The Municipality passed DC By -law 2011-93 in
July 2011 which imposes DCs for three services:
- Parks and Recreation
- Water
- Wastewater
• By -law 2011-93 expires on July 13, 2016
• The Municipality must pass a new by -law before
expiry in order to continue collecting DCs
HEMSON 4
DC Study Process
Development Forecast Anticipated amount, type and location
P of development must be estimated
Calculate 10 - Year Increase in need may not exceed
average level of service immediately
Historical Service Levels preceding background study
Increase in the need for service
Identify Growth related attributable to the anticipated
Reduce capital costs by Capital Costs development must be estimated
legislated deductions
I _ I
' Grants /Other Required Service Replacement/ ) r Available DC Post- Period
Contributions , •- Discount , ti Benefit to Existing J { Reserves Benefit ,
Costs Eligible for DC
Asset Management Plan Recovery
Allocation of eligible costs by
type of development
r i Residential Sector f Non - Residential Sector
(per unit) ) (per m of GFA)
HEMSON 5
Study Process to Date
• DC Study initiated - February
• Council Information Session - April 13th
• Background Study and By -law release - May 6th
• Statutory Public Meeting - June 8 (today)
• By -law to be considered - July 6
HEMSON 6
Municipality of Kincardine
DC Rate Structure
90% Eligible Services 100% Eligible Services
• Airport • Fire Services*
• Cemetery • Roads & Related
• Parks & Recreation • Water
• Public Works & Fleet • Wastewater
• Waste Management*
• General Government
• Waste Management and Fire Services are new services being considered as
part of the 2016 DC update
HEMSON
Municipal -Wide
Development Forecast
2016 -2025 2016 -2031
Residential Development Forecast At Growth At Growth At
2015 1 2016 -2025 2025 2016 -2031 2031
Total Private Dwelling Units 5,880 520 6,400 800 6,680
Total Pop in New Private Dwellings 1,260 1,990
Permanent Census Population I 11,370 j 970 12,340 1,480 12,850
Non - Residential Development Forecast
Employment 12,070 1,035 13,105 1,575 13,645
Non - Residential Building Space (Sq.M.) 77,500 118,070
• Employment forecast does not include work at home
• Numbers have been rounded
Recommendation:
• The Municipality should continue to levy DCs on a Municipal -wide basis (consistent
with 2011 DC Study)
HEMSON 8
Municipal -Wide General Services
Capital Program Summary
Total Gross Cost ($millions) $ 6.73
Less: Grants & Subsidies $ 2.11
Less: Benefit to Existing Share $ 2.04
Less: 10% Discount $ 0.21
Less: Available Reserve Funds $ 0.18
Less: Post -2025 Benefit $ 0.00
2016 -2025 DC Eligible Share $ 2019
HEMSON 9
General Services:
2016 -2025 DC Eligible Share
General
Government , 6%
Waste
Management, 1% Cemetery , 1%
Parks And
Fire Services , 20% Recreation , 42%
t r
Public Works &
Municipal Fleet ,
31%
Note: No identified capital costs for Airport Services Total = $2.19 million
HEMSON ]o
Municipal -Wide Engineered Services
Capital Program Summary
Total Gross Cost ($millions) $ 16.90
Less: Grants & Subsidies $ 0.00
Less: Benefit to Existing Share $ 5.71
Less: 10% Discount $ 0.00
Less: Available Reserve Funds $ 0.65
Less: Post -2031 Benefit $ 0.00
2016 -2031 DC Eligible Share $ 10.54
HEMSON
Enc ineerec Services:
2016 -2031 DC Eligible Shares
Roads And
Related , 14%
Wastewater , 60% Water , 26%
Total = $10.54 million
HEMSON 12
Calculated Municipal -Wide
Residential DC Rates
Waste General
Management , Government , 1.2%
0.5%
Fire Services , 4.1%
Cemetery , 0.3% Residential Charges
Public Works 8 Per Unit
Wastewater , Municipal Fleet ,
43.6% 6.8%
Recreation, 16.3% Singles /Semis
$13,608
All Other Units
$9,257
Apartments
Roads And $6,944
Related , 10.7%
Water, 16.5%
General Services = 29%
Engineered Services = 71%
HEMSON
3
Caiculatec Municioal -Wice
Non - Residential DC Rates
General
Government ,
Fire Services , 1.5%
Public Works 8
5.0% Municipal Fleet ,
8.3%
Roads And
Related , 12.8%
Non- Residential
Charges Per Sq.m.
Wastewater , Water , 19.9%
52.4%
$50.63
General Services = 15%
Engineered Services = 85%
HEMSON
Bruce County Area Municipalities
Rate Comparison
DCs Levied Current Current
Area - Municipalities Yes /No Residential Rate Non - Residential
$ /SDU Rate $ /Sq.M
Saugeen Shores - Calculated Yes $16,496 $84.41
Saugeen Shores - Current Yes $14,799 $45.64
Kincardine - Calculated Yes $13,608 $50.63
Kincardine - Current Yes $7,631 $32.83
Huron-Kinloss Yes $4,165 $0.00
(Ripley Settlement Area)
Huron - Kinloss (Lucknow) Yes $2,998 $0.00
Arran Elderslie No $0 $0.00
Brockton No $0 $0.00
Northern Bruce Peninsula No $0 $0.00
South Bruce No $0 $0.00
South Bruce Peninsula No $0 $0.00
Note: DCs are not levied at the Bruce County level
HEMSON I
Rate Cora oarison:
Sincle Detachec Units
v
Blue Mountains(Craiglelth) $23,649
Midland ,. $22,511
Shelburne $19,579
Meaford (SA2) . - $18,220
Saugeen Shores ( Calculated ) _ . _. $16,946
Saugeen Shores (Current) 9 $14,799
Southgate i i�11 ,.., - _� _...:' $14,641
Kincardine (Calculated) x _ $13,6084M
Kincardine (2011 Fully Calculated & Indexed) {{ { mew $13,019
Amaranth/ East Garafraxa 1111111=111mmessormormsisiormommoi $12,916
Owen Sound F nrrr�re++....® $11,422 is Upper Tier
West Grey r ... r 4 $7,664
Lower Tier
Kincardine (Current) J $7,631
Grey Highlands rrsr./ $7,125 of Area-Specific
Huron - Kinloss (Ripley Settlement Area) rrrrnrrrrd $4,165
South Huron $3,537 Note:
Huron - Kinloss ( Lucknow) $2,998 - Owen Sound has frozen
DCs until 2017
Goderich $271
$0 $5,000 $10,000 $15,000 $20,000 $25,000
HEMSON 16
Rate Comparison:
Non - Residential (Commercial $ /sq.m)
Meaford (SA2) $95.09
Blue Mountains (Cralgletth) . $86.56
Saugeen Shores (Calculated) $84.41
Midland $65.31
Southgate r i $64.66
Shelburne NMI $58.33
Kincardine (Calculated) iiiimmissiimmegnimmirgiummammiggimmismil $52.29
Saugeen Shores (Current) s.rrrrf $45.64
Kincardine (2011 Fully Calculated & Indexed) ' $42.69
Kincardine (Current) 1 $32.83
Owen Sound ' $19.91 r Upper Tier
Amaranth/ East Garafraxa 111.11 $6.24 Lower Tier
Grey Highlands ., $4.67 •Area- Specific
Goderich } $0.79
West Grey $0.00
South Huron $0.00
Note:
Huron - Kinloss (Ripley Settlement Area) $0.00 - Owen Sound has frozen
DCs until 2017
Huron - Kinloss (Lucknow) $0.00
$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00
HEMSON 17
2016 DC By -law
Non - Statutory Exemptions
• Exemptions to be carried forward from 2011 DC
By -law:
- Non - residential farm buildings, industrial uses,
institutional uses, and major office uses
— Exemptions for developments with existing plans of
subdivision that are required to pay capital and
reserve charge for water and wastewater
• Exemptions proposed to be removed:
— Subdivision developments that have previously paid
DCs
— Infill lots with water and wastewater services (exempt
from water and wastewater DCs only)
HEMSON 18
2016 DC By -law Proposed
Non - Statutory Exemptions
• Revised: Non - residential development less
than 232 sq.m in GFA and located within the
Kincardine CIP Area
• New: Affordable housing development
- Developments that have received funding from
the Federal, Provincial or County government
- Must be intended for persons of low or modest
incomes
HEMSON 19
i
DC Rate Implementation
• Examples of rate implementation:
- Immediate implementation of calculated rates
- Specific service implementation (2011 approach)
- Phase -in calculated rates over the life of by -law
(or variation of)
- Other options are available
• Council direction is required prior to DC By-
law passage
HEMSON 20
Fully Calculated Rates
Residential Charge Non -Res. Charge
Service Singles & % of Charge $ /Sq.M % of Charge
Semis
Airport $0 0.0% $0.00 0.0%
Cemetery $38 0.3% $0.00 0.0%
Parks And Recreation $2,213 16.3% $0.00 0.0%
Public Works & Mun. Fleet $929 6.8% $4.21 8.3%
Fire Services $562 4.1%
$2.55 5.0%
Waste Management $67 0.5% $0.00 0.0%
General Government $165 1.2% $0.75 1.5%
General Services $3,974 29.2% $7.51 14.8%
Roads And Related $1,452 10.7% $6.50 12.8%
Water $2,250 16.5% $10.09 19.9%
Wastewater $5,932 43.6% $26.53 52.4%
Engineered Services $9,634 70.8% $43.12 85.2%
TOTAL $13,608 100.0% $50.63 100.0%
HEMSON 21
Example 1:
Status Quo
Residential Charge Non -Res. Charge
Service Singles E. % of Charge $ /Sq.M % of Charge
Semis
Airport $0 0.0% $0.00 0.0%
Cemetery $0 0.0% $0.00 0.0%
Parks And Recreation * $819 9.1% $0.00 0.0%
Public Works & Mun. Fleet $0 0.0% $0.00 0.0%
Fire Services $0 0.0% $0.00 0.0%
Waste Management $0 0.0% $0.00 0.0%
General Government $0 0.0% $0.00 0.0%
General Services $819 9.1% $0.00 0.0%
Roads And Related $0 0.0% $0.00 0.0%
Water $2,250 25.0% $10.09 27.6%
Wastewater $5,932 65.9%
$26.53 72.4%
Engineered Services $8,182 90.9% $36.62 100.0%
TOTAL $9,001 100.0% $36.62 100.0%
Option 2 = $9,001
Option 2 = $ 36.62
Current DC Rate = $7,631 Current DC Rate = $ 32.83
Difference = $1,370 Difference
= $ 3.79
* service discount applied similar to 2011 by -law HEMSON 22
Example 2:
Variation of Status Quo
Residential Charge Non -Res. Charge
Service Singles R % of Charge $ /Sq.M % of Charge
Semis
Airport $0 0.0% $0.00 0.0%
Cemetery $25 0.3% $0.00 0.0%
Parks And Recreation $1,464 16.3% $0.00 0.0%
Public Works & Mun. Fleet $614 6.8% $3.05 8.3%
Fire Services $372 4.1% $1.84 5.0%
Waste Management $44 0.5% $0.00 0.0%
General Government $109 1.2% $0.54 1.5%
General Services $2,628 29.2% $5.43 14.8%
Roads And Related $961 10.7% $4.70 12.8%
Water $1,488 16.5% $7.30 19.9%
Wastewater $3,924 43.6%
$19.19 52.4%
Engineered Services $6,373 70.8% $31.19 85.2%
TOTAL $9,001 100.0% $36.62 100.0%
Option 3 = $9,001 Option 3 = $ 36.62
Current Rate = $7,631 Current Rate = $ 32.83
Difference = $1,370 Difference = $ 3.79
HEMSON 23
Items for Consideration
• Cannot implement a higher DC rate
- Any rate lower then what was calculated in the DC
Study can be implemented
• Revenue impacts
- Requires greater funding from non -DC sources
• Shortfalls cannot be recovered through other
charges
- Shortfalls of revenue due to discounts, phase -ins or
exemptions cannot be made up through higher
development charges for other development
HEMSON 24
Next Steps
• Statutory Public Meeting
- Today
• Respond to submission received at /after Public
Meeting
- Mid -June to Early -July
• Council ratification and passage of 2016 DC By -law
- Prior to July 13th, 2016
HEMSON 25
2016 DEVELOPMENT CHARGES
BACKGROUND STUDY
.0,041c r
great tnerg . bakamed'
KINCIIIL
HEMSONConsulting Ltd
May 6, 2016
TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
I INTRODUCTION 10
II A MUNICIPAL -WIDE METHODOLOGY ALIGNS DEVELOPMENT -
RELATED COSTS AND BENEFITS 12
A. Municipal -Wide Development Charges Are Calculated 12
B. Key Steps In Determining Development Charges For Future
Development - Related Projects 14
III DEVELOPMENT FORECAST 17
A. Residential Development Forecast 17
B. Non - Residential Development Forecast 18
IV SUMMARY OF HISTORICAL CAPITAL SERVICE LEVELS 20
V THE DEVELOPMENT - RELATED CAPITAL PROGRAM 22
A. A Development - Related Capital Program Is Provided For Council's
Approval 22
B. The Development - Related Capital Program For General Services 22
C. Development - Related Capital Program For Engineered Services 25
VI DEVELOPMENT CHARGES ARE CALCULATED IN ACCORDANCE WITH
THE DCA 27
A. Unadjusted Development Charge Calculation For General Services 27
B. Unadjusted Development Charg Calculation For Engineered
Services 29
C. Adjusted Residential And Non - Residential Development Charges 31
D. Comparison Of 2016 Newly Calculated Development Charges
With Charges Currenrly In Force In Kincardine 34
VII LONG -TERM CAPITAL AND OPERATING COSTS 37
A. Net Operating Costs For The Municipality's Services Estimated To
Increase Over The Forecast Period 37
B. Long -Term Capital Financing From Non - Development Charge
Sources Totals $5.26 Million 37
VIII ASSET MANAGEMENT PLAN 39
IX DEVELOPMENT CHARGES ADMINISTRATION 42
HEMSON
LIST OF APPENDICES
A. DEVELOPMENT FORECAST 43
B. GENERAL SERVICES TECHNICAL APPENDIX 58
B.1 AIRPORT 64
B.2 CEMETERY 72
B.3 PARKS AND RECREATION 81
B.4 PUBLIC WORKS 95
B.5 FIRE PROTECTION 105
B.6 WASTE MANAGEMENT SERVICES 115
B.7 GENERAL GOVERNMENT 124
C. ENGINEERING INFRASTRUCTURE TECHNICAL APPENDIX 130
C.1 ROADS AND RELATED 132
C.2 WATER SERVICES 138
C.3 WASTEWATER SERVICES 144
D. RESERVE FUND BALANCES 150
E. LONG -TERM CAPITAL AND OPERATING IMPACTS 153
F. ASSET MANAGEMENT PLAN 157
G. DRAFT 2016 DC BY -LAW 164
HEMSON
EXECUTIVE SUMMARY
Hemson Consulting Ltd. was retained by the Municipality of Kincardine to complete
a Development Charges (DC) Background Study. This Background Study provides
the basis and background to update the Municipality's development charges to
accurately reflect the servicing needs of new development in Kincardine.
A. STUDY CONSISTENT WITH DEVELOPMENT CHARGES LEGISLATION
• The study calculates development charges for the Municipality of Kincardine in
compliance with the provisions of the Development Charges Act, 1997 (DCA)
and its associated regulation 0. Reg. 82/98 and the recently amended provisions
of the legislation.
• The Municipality needs to implement development charges to help fund capital
projects related to development throughout Kincardine so that development
continues to be serviced in a fiscally responsible manner. The calculated
development charges rates are required in order to reflect the costs associated
with the infrastructure requirements.
• The DCA and 0. 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 residential and non-
residential development anticipated in the Municipality;
• A review of future capital projects, including an analysis of gross
expenditures, funding sources, and net expenditures incurred or to be
incurred by the Municipality to provide for the expected development,
including the determination of the DC eligible and non -DC- eligible
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.
HEMSON
2
• This report identifies the development - related capital costs which are
attributable to development that is forecast to occur in the Municipality. These
costs are apportioned to types of development (residential and non - residential)
in a manner that reflects the increase in the need for each service attributable
to each type of development.
B. ALL SERVICES WITH DEVELOPMENT - RELATED COSTS INCLUDED IN THE
ANALYSIS
The following Municipal services have been included in the development charge
analysis:
• Airport
• Cemetery
• Parks and Recreation
• Public Works and Municipal Fleet
• Fire Services
• Waste Management
• General Government
• Roads and Related
• Water
• Wastewater
Development charges for all services are calculated on a Municipal -wide basis.
C. DEVELOPMENT FORECAST
• Utilizing the Municipality's historical building permit information and data
from Statistics Canada, a forecast has been derived for the purposes of the
Development Charges Background Study.
HEMSON
3
• The capital infrastructure planning period for General Services is based on the
10 -year planning horizon 2016 to 2025. The planning period for the Engineered
Services of Roads and Related, Water, and Wastewater is from 2016 to 2031.
• The Municipality is forecast to add approximately 520 new households in the
10 -year planning period from 2016 to 2025. This household estimate can
accommodate roughly 1,260 persons. The planning period for Engineered
Services will see an addition of 795 household units which can accommodate
population growth of 1,985 persons.
• The employment forecast for the Municipality is forecast to add approximately
1,030 employees in the 10 -year planning period. This results in the addition of
77,500 square metres of new non - residential building space from 2016 to 2025.
For the sixteen -year planning period, approximately 1,570 employees will be
accommodated in 118,100 square metres of new non - residential building space.
• The following is a summary of the projected growth for the Municipality:
Existing 2016 — 2025 2016 — 2031
RESIDENTIAL FORECAST As At Total at Total at
Mid -Year Growth 2025 Growth 2031
2015
Total Private Dwellings 5,884 518 6,402 795 6,679
Population
Census 11,367 973 12,340 1,482 12,849
In New Households 1,263 1,985
Existing 2016 — 2025 2016 — 2031
NON - RESIDENTIAL As At
FORECAST Growth Total at Growth Total at
Mid -Year 2025 2031
2015
Non - Residential Building 77,499 118,072
Space (sq.m)
Employment 12,073 1,033 13,106 1,574 13,647
HEMSON
4
D. THE MUNICIPALITY HAS AN EXTENSIVE DEVELOPMENT - RELATED CAPITAL
PROGRAM FOR THE PROVISION OF ELIGIBLE SERVICES
General Services 2016 — 2025
• Municipal staff, in collaboration with Hemson Consulting, has developed a
development - related capital program setting out projects that are required to
service the anticipated development. The development - related capital programs
are based on a 10 -year planning period from 2016 to 2025.
• The gross cost of the Municipality's development - related capital program for
general services amounts to $6.73 million and provides for a wide range of
infrastructure additions. Of the $6.73 million, approximately $2.19 million has
been identified as eligible for recovery through development charges over the
2016 -2025 planning period.
• In total, approximately $2.11 million has been identified as subsidies or grants
that the Municipality will anticipate receiving to fund development- related
projects.
• The DCA requires that development - related net capital costs for General
Services be reduced by 10 per cent when calculating the applicable
development charges for these services. The 10 per cent share of development -
related net capital costs not included in the development charges calculations
must be funded from non - development charges sources. In total, about
$241,200 is identified as the required 10 per cent reduction.
• Non - development charges funding for replacement portions of the capital
program and for portions of development- related capital projects that benefit
existing development have been identified. Replacement or benefit to existing
shares amount to $2.05 million.
• No post - period benefitting shares have been identified for development
occurring beyond 2025.
• Available DC reserves in the amount of $178,000 are also excluded from the
DC eligible cost amount.
HEMSON
5
• The following is a summary of the development- related capital program for
General Services:
DC Eligible Cost
Service Gross Cost For Recovery
($000) 2016 -2025
($000)
Airport $0.0 $0.0
Cemetery $341.5 $15.4
Parks and Recreation $4,100.0 $911.8
Public Works & Municipal Fleet $750.0 $675.0
Fire Services $1,100.0 $440.0
Waste Management $250.0 $26.0
General Government $192.5 $121.5
Total — 10 -Year General Services $6,734.0 $2,189.6
• Details regarding the capital programs for general services are provided in
Appendix B of this report.
Engineered Services 2016 -2031
• The total gross cost for the Engineered Services of Roads and Related, Water
and Wastewater services is $16.90 million. This provides for various projects
such as road, sidewalk, bridge structure, additional water storage, additional
sewage capacity, and the Connaught sewage pumping station.
• No grants or subsidies are anticipated.
• A share of the engineered services capital program has been deemed to benefit
the existing community. This share totals approximately $5.71 million and has
been netted off of the total gross cost of the program.
• Available DC reserves in the amount of $650,900 are also excluded from the
DC eligible cost amount.
• The total costs eligible for DC recovery is reduced to $10.54 million. Details of
the Engineered Services capital program and development charges calculations
can be found in Appendix C.
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DC Eligible Cost
Service Gross Cost For Recovery
($000) 2016 -2031
($000)
Roads and Related $4,500.0 $1,500.0
Water $3,000.0 $2,754.7
Wastewater $9,401.0 $6,280.5
Total — 16 -Year Engineered Services $16,901.0 $10,535.2
E. DEVELOPMENT CHARGES ARE CALCULATED WITH FULL REFERENCE TO THE
DCA
• Development charges rates have been established under the parameters and
limitations of the DCA. The study provides the rationale and basis for the
calculated rates.
• A Municipal -wide uniform cost approach is used to calculate development
charges for the eligible services. Uniform residential and non - residential charges
are levied throughout the Municipality.
• The calculated charges are the maximum charges the Municipality 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 taxes.
• 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 Municipal
services.
• The following is a summary of the calculated development charges:
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Calculated Residential Development Charges
Residential Charge By Unit Type (1)
Service Singles & Rows & Other
Semis Multiples Apartments
Airport $0 $0 $0
Cemetery $38 $26 $20
Parks And Recreation $2,213 $1,505 $1,129
Public Works & Municipal Fleet $929 $632 $474
Fire Services $562 $383 $287
Waste Management $67 $45 $34
General Government $165 $112 $84
Subtotal General Services $3,974 $2,703 $2,028
Roads And Related $1,452 $988 $741
Water $2,250 $1,531 $1,148
Wastewater $5,932 $4,035 $3,027
Subtotal Engineered Services $9,634 $6,554 $4,916
TOTAL CHARGE PER UNIT I $13,608 $9,257 $6,944
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Calculated Non - Residential Development Charges
Charge per
Service Square Metre of
Gross Floor
Area
Airport $0.00
Cemetery $0.00
Parks And Recreation $0.00
Public Works & Municipal Fleet $4.21
Fire Services $2.55
Waste Management $0.00
General Government $0.75
Subtotal General Services $7.51
Roads And Related $6.50
Water $10.09
Wastewater $26.53
Subtotal Engineered Services $43.12
TOTAL CHARGE PER SQUARE METRE $50.63
F. NEWLY CALCULATED DC RATES ARE HIGHER THAN CURRENT RATES
• The fully calculated residential charge for a single or semi - detached unit is
$13,608, which represents a $5,977 increase from the Municipality's current
charge of $7,631.
• It should be noted that when Council passed By -law 2011 -093, the services
included in the by -laws were discounted and phased in over the five -year life of
the by -law. As such, the rates currently imposed today are not a true reflection
of the fully calculated rates under the 2011 DC Study. The fully calculated
rates, indexed to today's dollars, would be $13,019. This amount, compared to
the newly calculated residential rate, represents a $589 increase.
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• The calculated non - residential charge of $50.63 per square metre of gross floor
area represents a $17.80 increase from the Municipality's current non-
residential charge of $32.83 per square metre.
• The fully calculated non - residential rate in the 2011 DC Background Study,
indexed to present day dollars, amounts to $42.69 per square metre. This,
compared to the newly calculated rate, represents a $7.94 increase from the
currently imposed rate.
G. A PORTION OF DEVELOPMENT - RELATED COSTS REQUIRE FUNDING FROM
NON - DEVELOPMENT CHARGE SOURCES
• Non - development charge funding of $5.26 million will be required to fund the
tax supported development- related capital program.
• Based on a high -level operating cost impact analysis, it is estimated that net
operating costs will increase by about $321,300 by the year 2025 as the facilities
and infrastructure included in the capital forecast are operated and maintained.
H. ASSET MANAGEMENT PLAN
• A key function of the Asset Management Plan is to demonstrate that all assets
proposed to be funded under the development charges by -law are financially
sustainable over their full life cycle.
• By 2025, the Municipality will need to fund an additional $221,200 per annum
in order to properly fund the full life cycle costs of the new assets supported
under the 2016 Development Charges By -Law.
I. DEVELOPMENT CHARGES BY -LAW PRACTICES AND COLLECTION POLICIES
• As required under the DCA, the Municipality 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 Council adopt the development- related capital program
included in this background study, subject to annual review through the
Municipality's normal capital budget process.
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I INTRODUCTION
The Municipality of Kincardine 2016 Development Charges (DC) Background Study
is presented as part of a process to lead to the approval of new development charge by-
law in compliance with the Development Charges Act, 1997 (DCA).
The DCA and Ontario Regulation 82/98 (O. Reg. 82/98) require that a development
charge background study be prepared in which development charges are determined
with reference to:
• A forecast of the amount, type and location of development anticipated in the
Municipality;
• The average capital service levels provided in the Municipality over the 10 -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
Municipality or its local boards to provide for the expected development,
including the determination of the eligible and ineligible 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.
The study presents the results of the review which determines the development -
related net capital costs that are attributable to development that is forecast to occur
in the Municipality. These development - related net capital costs are then apportioned
among various 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.
The DCA provides for a period of public review and comment regarding the
calculated development charges. Following completion of this process in accordance
with the DCA and Council's review of the study and the comments it receives
regarding the study or other information brought to its attention about the calculated
charges, it is intended that Council will pass a new development charges by -law for
the Municipality.
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The remainder of the 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 Municipality to which the development charges will apply. It
also briefly reviews the methodology that has been used in this background study.
Section III presents a summary of the residential and non - residential development
which is forecast to occur within the Municipality over the 2016 -2025 period and to
2031.
Section IV summarizes the historic 10 -year historical average service levels that have
been attained in the Municipality which form the basis for the development charge
calculations for general services.
In Section V, the development- related capital programs that have been developed by
various Municipal departments are reviewed.
Section VI summarizes the calculation of applicable development charges and the
resulting calculated development charges by unit type. It also provides a comparison
of existing development charge rates in the Municipality with the rates calculated in
the study.
Section VII provides an examination of the long term capital and operating costs for
each service included in the development charge calculation.
Section VIII presents an Asset Management Plan for the Municipality, demonstrating
financial sustainability of assets over the life cycle of the 2016 Development Charges
By -law and satisfying the new requirements implicated by the 2015 amendment to the
Development Charges Act.
Section IX provides a review of development charges administrative matters.
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II A MUNICIPAL -WIDE METHODOLOGY ALIGNS
DEVELOPMENT - RELATED COSTS AND BENEFITS
Several key steps are required in calculating any development charge. However,
specific circumstances arise in each municipality which must be reflected in the
calculation. In the study, therefore, we have tailored our approach to the Municipality
of Kincardine's unique circumstances. The approach to the calculated development
charges is focused on providing a reasonable alignment of development- related costs
with the development that necessitates them. The study calculates charges on a
Municipal -wide basis. Despite the fact that development charges are calculated on a
Municipal -wide basis, legislation allows a municipality to exempt or reduce rates for
specific geographic areas. However, legislation prevents lost revenue, due to
exemptions or reductions, from being made up through increasing charges on other
areas.
A. MUNICIPAL -WIDE DEVELOPMENT CHARGES ARE CALCULATED
Kincardine provides a range of services to the community it serves and has a sizeable
inventory of facilities, land, infrastructure, vehicles and equipment. The DCA
provides municipalities with flexibility when defining services that will be included in
the development charge by -laws, provided that the other provisions of the Act and
Regulations are met. The DCA also permits municipalities to designate, in its by -laws,
the areas within which the development charges shall be imposed. The charges may
apply to all lands in a municipality or to other designated development areas as
specified in the by -laws.
For all of the development charge eligible services that the Municipality of Kincardine
provides, the full range of capital facilities, land, equipment and infrastructure is
available throughout the Municipality. All residents therefore have access to all
facilities. A widely accepted method for recovering the development - related capital
costs for such services is to apportion them over all new development anticipated in
the Municipality.
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The following services are included in the Municipality -wide development charge
calculation:
• Airport
• Cemetery
• Parks and Recreation
• Public Works and Municipal Fleet
• Fire Services
• Waste Management
• General Government
• Roads and Related
• Water
• Wastewater
These services form a reasonable basis in which to plan and administer the Municipal -
wide development charges. It is noted that the analysis of each of these services
examines the individual capital facilities and equipment that make them up. For
example, the Parks and Recreation category includes indoor recreation centres,
outdoor play fields, and park features.
The resulting development charge for all of the above services would be imposed
uniformly against all new development everywhere in the Municipality.
Waste Management Services is a new service proposed to be introduced in the 2016
DC By -law as elements of Waste Management, such as collection, diversion, recycling
and organics processing are now eligible under the DCA.
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B. KEY STEPS IN DETERMINING DEVELOPMENT CHARGES FOR FUTURE
DEVELOPMENT - RELATED PROJECTS
Several key steps are required in calculating development charges for future
development - related projects. These are summarized below.
1. Development Forecast
The first step in the methodology requires a development forecast to be prepared for
the 10 -year study period, 2016 -2025, for general services and for growth to 2031 for
engineered services.
For the residential portion of the forecast both the census population growth and
population growth in new units is estimated. Net population growth determines the
need for additional facilities and provides the foundation for the development - related
capital program.
The non - residential portion of the forecast estimates the gross floor area (GFA) of
building space to be developed over the 10 -year period, 2016 -2025, and to 2031. The
forecast of GFA is based on the employment forecast for the Municipality. Factors for
floor space per worker by category are used to convert the employment forecast into
gross floor areas for the purposes of the development charges study.
2. Service Categories and Historical Service Levels
The DCA provides 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 municipality over the
10 -year period immediately preceding the preparation of the background
study...(s. 5. (1) 4.)
Historical 10 -year average service levels thus form the basis for development charges.
A review of the Municipality's capital service levels for buildings, land, vehicles, and
so on 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 charge can be
determined. The historical service levels used in this study have been calculated based
on the period 2006 -2015.
3. Development - Related Capital Program and Analysis of DC Eligible Costs to be
Recovered Through Development Charges
A development- related capital program has been prepared by the Municipality's
departments as part of the present study. The program identifies development- related
projects and their gross and net municipal costs, after allowing for capital grants,
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subsidies or other recoveries as required by the Act (DCA, s. 5. (2)). The capital
program 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 municipality has indicated that it intends to ensure
that such an increase in need will be met. (s. 5. (1) 3.)
In conjunction with DCA, s. 5. (1) 4. referenced above, these sections have the effect
of requiring that the development charges be calculated on the lesser of the historical
10 -year average service levels or the service levels embodied in future plans of the
Municipality. The development- related capital program prepared for the study ensures
that development charges are only imposed to help pay for projects that have been or
p g Y P Pp Y P J
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, O. Reg.
82/98, s. 3 states that:
For the purposes of paragraph 3 of subsection 5 (1) of the Act, the council of a
municipality has indicated that it intends to ensure that an increase in the need
for service will be met if the increase in service forms part of 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.
For some projects in the development- related capital program, a portion of the project
may confer benefits to existing residents. As required by the DCA, s. 5. (1) 6., these
portions of projects and their associated net costs are the funding responsibility of the
Municipality from non - development charges sources. The amount of municipal
funding for such non -DC- eligible shares of projects is also identified as part of the
preparation of the development- related capital program.
There is also a requirement in the DCA to reduce the applicable development charge
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, in calculating development charges, the development- related net municipal
costs must be reduced by 10 per cent for all municipal services except engineered and
protection services (DCA, s. 5. (1) 8.). The 10 per cent discount is applied to the
other services (e.g. airport, cemetery, waste management etc.) and the resulting
municipal funding responsibility from non - development charge sources is identified.
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4. Attribution to Types of Development
The next step in the determination of development charges is the allocation of the
development- related net capital costs between the residential and the non - residential
sectors. In the Municipality of Kincardine, the allocation for general services is based
on the consideration of projected changes in population in new units and employment
over the planning periods. The exceptions are for the services of Parks and Recreation,
Cemetery and Waste Management. The development - related costs for these services
have been allocated 100 per cent to residential growth.
The residential component of the development charge 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 for non - residential development.
5. Final Adjustment
The final determination of the development charge results from a cash flow analysis
which 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.
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HI DEVELOPMENT FORECAST
This section summarizes the growth forecasts used to calculate the development
charges for the Municipality of Kincardine. Appendix A contains additional material
related to the development forecast and the Municipality's demographics.
A. RESIDENTIAL DEVELOPMENT FORECAST
Development charges are levied on residential development as a charge per new unit.
Therefore, for the residential forecast, a projection of both the population growth.' as
well as the population in new units is required.
• The population growth determines the need for additional facilities and
provides the foundation for the development- related capital program.
• When calculating the development charge, however, the development - related
net capital costs are spread over the total additional population that occupy
new housing units. This population in new units represents the population
from which development charges will be collected.
It is forecast that the Municipality will achieve an average rate of growth of
approximately 50 residential units per year until 2031. The unit mix for this number of
households has been assumed to remain predominantly single or semi - detached units
(62 per cent of overall housing growth), while experiencing a shift toward higher
densities with rows and multiples comprising 22 per cent and apartments at 16 per
cent of forecast housing growth.
Over the planning period from 2016 to 2025, the total number of new residential units
will increase by approximately 520, which translates into a population in new units of
1,260 persons. In addition, the population in new households is derived by applying
average household sizes to each unit type to create the forecast. The 10 -year planning
period is used for the General Services offered by the Municipality.
Over the longer planning period to 2031, the total number of new residential units
will increase by approximately 795, which translates into a population in new units of
Commonly referred to as "net population growth" in the context of development charges.
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1,980 persons. This build -out forecast of population in new units is used as the
planning period for the engineered services of roads, water and sewer services.
B. NON - RESIDENTIAL DEVELOPMENT FORECAST
The non - residential development forecast was based on the historical activity rate
(the relationship between population and employment) of roughly 106 per cent. Over
the period from 2016 to 2025, it is forecast that the Municipality will add 1,030 new
employees, and non - residential gross floor building area will increase by approximately
77,500 square metres. The study is based on a non - residential build -out of 2031, at
which time the Municipality will have added 1,570 new employees and roughly
118,100 square metres of new non - residential building floor area.
A summary of the non - residential growth forecast can be found in Table 1.
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TABLE 1
MUNICIPALITY OF KINCARDINE
SUMMARY OF RESIDENTIAL AND NON - RESIDENTIAL
DEVELOPMENT FORECAST
General Serivces Engineered Services
Planning Period Planning Period
Municipal -Wide Residential Development 2015 2016 -2025 2016 -2031
Forecast Estimate Total at
Growth 2025 Growth Total at 2031
Residential Development Forecast
Total Private Dwelling Units 5,884 518 6,402 795 6,679
Population In New Dwellings 1,263 1,985
Permanent Population
Census 11,367 973 12,340 1,482 12,849
Non - Residential Development Forecast
Employment 12,073 1,033 13,106 1,574 13,647
Non - Residential Building Space (sq.m.) 77,499 118,072
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IV SUMMARY OF HISTORICAL CAPITAL SERVICE LEVELS
The DCA and 0. Reg. 82/98 require that the development charges be set at a level no
higher than the average service level provided in the municipality over the 10 -year
period immediately preceding the preparation of the background study, on a service by
service basis.
For non - engineered services, or general services, (airport, cemetery, etc.) the
legislative requirement is met by documenting historical service levels for the
preceding 10 years, in this case, for the period 2006 to 2015. Typically, service levels
for general services are measured as a ratio of inputs per capita (or per capita and
employment).
0. Reg. 82/98 requires that when determining historical service levels both 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 capita. The qualitative aspect is introduced by the
consideration of 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
development - related capital facilities that are to be charged to new development
reflect not only the quantity (number and size) but also the quality (value or
replacement cost) of service provided historically by the Municipality. Both the
quantitative and qualitative aspects of service levels used in the present analysis are
based on information provided by Municipal staff based on historical records and their
experience with costs to acquire or construct similar facilities, equipment and
infrastructure.
Table 2 summarizes service levels for all Municipal -wide services included in the
development charge calculation (excluding general government). Appendix B
provides detailed historical inventory data upon which the calculation of service levels
is based for general services.
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TABLE 2
MUNICIPALITY OF KINCARDINE
SUMMARY OF AVERAGE HISTORICAL SERVICE LEVELS 2006 -2015
2006 -2015
Service Service Level
Indicator
1.0 AIRPORT $972.90 per capita and employee
Buildings $46.10 per capita and employee
Land $772.60 per capita and employee
Equipment & Infrastructure $20.97 per capita and employee
Runways & Parking Lots $133.23 per capita and employee
2.0 CEMETERY $216.77 per capita
Buildings $28.18 per capita
Other Structures $10.01 per capita
Land $141.03 per capita
Vehicles $19.69 per capita
Roads $17.86 per capita
3.0 PARKS AND RECREATION $3,562.66 per capita
Indoor Recreation $2,619.09 per capita
Parkland Development $59.91 per capita
Park Facilities $475.40 per capita
Parks Buildings $408.26 per capita
4.0 PUBLIC WORKS & MUNICIPAL FLEET $497.21 per capita and employee
Buildings $200.01 per capita and employee
Land $64.12 per capita and employee
Fleet & Small Equipment $226.00 per capita and employee
Fixtures, Furniture & Equipment $7.08 per capita and employee
5.0 FIRE SERVICES $406.43 per capita and employee
Buildings $95.64 per capita and employee
Land $124.47 per capita and employee
Furniture & Equipment $6.38 per capita and employee
Fire Fighter Equipment $32.11 per capita and employee
Vehicles $147.83 per capita and employee
6.0 WASTE MANAGEMENT $174.28 per capita
Buildings $19.31 per capita
Land $1.62 per capita
Vehicles $152.80 per capita
Equipment $0.55 per capita
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V THE DEVELOPMENT - RELATED CAPITAL PROGRAM
The DCA requires the Council of a municipality to express its intent to provide future
capital facilities at the level incorporated in the development charges calculation. As
noted above in Section II, 0. Reg. 82/98, s. 3 states that:
For the purposes of paragraph 3 of subsection 5 (1) of the Act, the council of a
municipality has indicated that it intends to ensure that an increase in the need
for service will be met if the increase in service forms part of 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. A DEVELOPMENT - RELATED CAPITAL PROGRAM IS PROVIDED FOR
COUNCIL'S APPROVAL
Based on the development forecasts summarized in Section III and detailed in
Appendix A, Municipal staff, in collaboration with the consultants, developed a
development- related capital program setting out those projects that are required to
service anticipated development. For all services, except for engineered services, the
capital program covers the 10 -year period from 2016 to 2025. As permitted by the
DCA s. 5(1)4., the development charge for engineered services is based on
development expected in the Municipality to 2031.
One of the recommendations contained in this background study is for Council to
adopt the development - related capital program developed for the purposes of the
development charges calculation. It is assumed that future capital budgets and
forecasts will continue to bring forward the development - related projects contained
herein that are consistent with the development occurring in the Municipality. It is
acknowledged that changes to the capital program presented here may occur through
the Municipality's normal capital budget process.
B. THE DEVELOPMENT - RELATED CAPITAL PROGRAM FOR GENERAL SERVICES
A summary of the development - related capital forecast for all services is presented in
Table 3.
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TABLE 3
MUNICIPALITY OF KINCARDINE
SUMMARY OF DEVELOPMENT - RELATED CAPITAL PROGRAM
FOR GENERAL SERVICES 2016 - 2025
(in $000)
Gross Grants/ Municipal Total Net Capital Program
Service Cost Subsidies Cost 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
1.0 AIRPORT $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
1.1 Airport Development - Related Projects $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
2.0 CEMETERY $341.5 $0.0 $341.5 $61.5 $0.0 $100.0 $0.0 $180.0 $0.0 $0.0 $0.0 $0.0 $0.0
2.1 Cemetery Projects $341.5 $0.0 $341.5 $61.5 $0.0 $100.0 $0.0 $180.0 $0.0 $0.0 $0.0 $0.0 $0.0
3.0 PARKS AND RECREATION $4,100.0 $2,105.0 $1,995.0 $15.0 $15.0 $715.0 $140.0 $1,035.0 $15.0 $15.0 $15.0 $15.0 $15.0
3.1 Indoor Recreation $3,700.0 $1,980.0 $1,720.0 $0.0 $0.0 $700.0 $0.0 $1,020.0 $0.0 $0.0 $0.0 $0.0 $0.0
3.2 Outdoor Recreation $400.0 $125.0 $275.0 $15.0 $15.0 $15.0 $140.0 $15.0 $15.0 $15.0 $15.0 $15.0 $15.0
4.0 PUBLIC WORKS & MUNICIPAL FLEET $750.0 $0.0 $750.0 $0.0 $0.0 $170.0 $580.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
4.1 Vehicles and Equipment $750.0 $0.0 $750.0 $0.0 $0.0 $170.0 $580.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
5.0 FIRE SERVICES $1,100.0 $0.0 $1,100.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $1,100.0 $0.0 $0.0 $0.0
5.1 Vehicles and Equipment $1,100.0 $0.0 $1,100.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $1,100.0 $0.0 $0.0 $0.0
6.0 WASTE MANAGEMENT $250.0 $0.0 $250.0 $0.0 $0.0 $250.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
6.1 Facilities and Site Works $250.0 $0.0 $250.0 $0.0 $0.0 $250.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
7.0 GENERAL GOVERNMENT $192.5 $0.0 $192.5 $50.0 $25.0 $0.0 $40.0 $0.0 $77.5 $0.0 $0.0 $0.0 $0.0
6.1 All Studies $192.5 $0.0 $192.5 $50.0 $25.0 $0.0 $40.0 $0.0 $77.5 $0.0 $0.0 $0.0 $0.0
TOTAL -10 YEAR GENERAL SERVICES $6,734.0 $2,105.0 $4,629.0 $126.5 $40.0 $1,235.0 $760.0 $1,215.0 $92.5 $1,115.0 $15.0 $15.0 $15.0
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The table provides a separate total for services analysed over the 10 -year period, 2016-
2025. Further details on the capital programs for each individual service category are
available in Appendix B.
The development- related capital program for general services estimates a total gross
cost of $6.73 million. Approximately $2.11 million in grants and subsidies has been
identified. Therefore, the net municipal cost of the capital program is $4.63 million.
This capital program incorporates those projects identified to be related to
development anticipated in the next 10 years. It is not implied that all of these costs
are to be recovered from new development by way of development charges (see
Section VI for the method and determination of net municipal costs attributable to
development). Portions of this capital program may relate to replacement of existing
capital facilities or for development anticipated to occur beyond the 2016 -2025
planning period. In addition, the amounts shown in Table 3 have not been reduced by
10 per cent for various general services as mandated by s.5(1 )8. of the DCA.
Of the $4.63 million in 10 -year net municipal capital costs for General Services, $2.00
million (43 per cent) is related to the provision of Parks and Recreation Services. This
amount is related to additional parking at the Davidson Centre, the design and
construction of an expansion to the Whitney Crawford Community Centre, and a
washroom, picnic shelter, and equipment storage. The capital program also includes a
provision for various outdoor recreation amenities such as trails, parks, land
improvements etc.
The next largest capital program belongs to Fire Services which amounts to $1.10
million or 24 per cent of the total costs related to General Services. This program
provides for a new aerial truck.
The Public Works and Municipal Fleet capital program provides for the recovery of a
sidewalk plow, single axel plow, and two -bay addition. The net municipal cost for this
program amounts to $750,000.
The capital program associated with the Cemetery provides for the recovery of Phase 4
of the Columbaria project and a cemetery expansion. The total net municipal cost for
this program totals to $341,500.
HEMSON
25
A relatively small component of the general services capital program relates to Waste
Management Services. This program provides for expansion /improvements for
internal driveways and receiving areas. The total net municipal cost for this program
amounts to $250,000.
The portion of the Municipality's capital program which relates to the provision of
development- related studies is referred to as General Government. The net municipal
cost for this program amounts to $192,500.
No capital costs have been identified for Airport Services.
C. DEVELOPMENT - RELATED CAPITAL PROGRAM FOR ENGINEERED SERVICES
Table 4 provides a summary of the 2016 -2031 Engineered Services capital program for
Roads, Water and Wastewater services. The roads and related projects are comprised
of road, sidewalk, and bridge structures. The water capital program makes a provision
for additional water storage, while the wastewater capital program makes a provision
for additional sewage capacity, the construction of the Connaught sewage pumping
station and trunk sewer, construction of the Park St. sewage pumping station, and
provisions for additional inflow and infiltration projects.
The total cost of the Engineered Services capital program totals to $16.90 million. No
direct developer contributions have been identified.
Further details on the development charge calculation for Roads and Related, Water
and Wastewater services are available in Appendix C.
HEMSON
26
TABLE 4
MUNICIPALITY OF KINCARDINE
SUMMARY OF DEVELOPMENT - RELATED CAPITAL PROGRAM
FOR ENGINEERED SERVICES 2016 - 2031
(in $000)
Gross Grants! Municipal Total Net Municipal Cost of the Engineered Services Capital Program
Service Cost Subsidies Cost 2016 2017 2018 2019 2020 2021 2022
1.0 ROADS AND RELATED
1.1 Road Projects $4,500.0 $0.0 $4,500.0 $50.0 $650.0 $3,000.0 $0.0 $0.0 $0.0 $800.0
2.0 WATER
2.1.1 Additional Water Storage $3,000.0 $0.0 $3,000.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
3.0 WASTEWATER
3.1 Wastewater Projects $9,401.0 $0.0 $9,401.0 $0.0 $0.0 $0.0 $0.0 $5,056.0 $0.0 $0.0
TOTAL $16,901.0 $0.0 $16,901.0 $50.0 $650.0 $3,000.0 $0.0 $5,056.0 $0.0 $800.0
Total Net Municipal Cost of the Engineered Services Capital Program
Service 2023 2024 2025 2026 2027 2028 2029 2030 2031
1.0 ROADS AND RELATED
1.1 Road Projects $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
2.0 WATER
2.1 Water Projects $0.0 $0.0 $0.0 $3,000.0 $0.0 $0.0 $0.0 $0.0 $0.0
3.0 WASTEWATER
3.1 Wastewater Projects $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
TOTAL $0.0 $0.0 $0.0 $3,000.0 $0.0 $0.0 $0.0 $0.0 $0.0
27
VI 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.
Furthermore, the calculation of the "unadjusted" per capita (residential) and per
square metre (non- residential) is presented. Adjustments are made to these amounts
resulting from a cash flow analysis that consider interest earnings and borrowing costs.
For residential development, the adjusted total per capita amount is then converted to
a variable charge by housing unit type using unit occupancy factors. The calculated
non - residential charges are based on gross floor area (GFA) of building space.
It is noted that the calculation of the Municipal -wide development charges does not
include any provision for exemptions required under the DCA such as the exemption
for enlargements of up to 50 per cent on existing industrial buildings. Such legislated
exemptions, or other exemptions or reductions which Council may choose to provide,
will result in loss of development charge revenue for the affected types of
development. Any such revenue loss may not be made up, however, by offsetting
increases in other portions of the calculated charge.
A. UNADJUSTED DEVELOPMENT CHARGE CALCULATION FOR GENERAL
SERVICES
A summary of the "unadjusted" residential and non - residential development charges
for General Services is presented in Table 5. Further details of the calculation for each
individual Municipal service category are available in Appendix B.
The capital program for General Services incorporates those projects identified to be
related to development anticipated in the next 10 years. However, not all of the
capital costs are to be recovered from new development by way of development
charges. Table 5 shows that $2.05 million of the capital program relates to
replacement of existing capital facilities or to shares of projects that provide benefit to
HEMSON
28
TABLE 5
MUNICIPALITY OF KINCARDINE
SUMMARY OF UNADJUSTED RESIDENTIAL AND NON - RESIDENTIAL DEVELOPMENT CHARGES
10 -YEAR CAPITAL PROGRAM FOR GENERAL SERVICES
10 Year Growth in Population in New Units 1,263
10 Year Growth in Square Metres 77,499
Development - Related Capital Program (2016 - 2025)
Total DC
Service Net Replacement Required Eligible
Municipal & Benefit to Service Available Post -2025 Costs for Residential Non - Residential
Cost Existing Discount DC Reserves Benefit Recovery Share Share
($000) ($000) ($000) ($000) ($000) ($000) % ($000) % ($000)
1.0 AIRPORT $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 55% $0.0 45% $0.00
Unadjusted Development Charge Per Capita $0.00
Unadjusted Development Charge Per Sq.M $0.00
2.0 CEMETERY $341.5 $324.4 $1.7 $0.0 $0.0 $15.4 100% $15.4 0% $0.00
Unadjusted Development Charge Per Capita $12.17
Unadjusted Development Charge Per Sq.M $0.00
3.0 PARKS AND RECREATION $1,995.0 $784.2 $121.1 $178.0 $0.0 $911.8 100% $911.8 0% $0.00
Unadjusted Development Charge Per Capita $721.89
Unadjusted Development Charge Per Sq.M $0.00
4.0 PUBLIC WORKS & MUNICIPAL FLEET $750.0 $0.0 $75.0 $0.0 $0.0 $675.0 55% $371.3 45% $303.75
Unadjusted Development Charge Per Capita $293.94
Unadjusted Development Charge Per Sq.M $3.92
5.0 FIRE SERVICES $1,100.0 $660.0 $0.0 $0.0 $0.0 $440.0 55% $242.0 45% $198.00
Unadjusted Development Charge Per Capita
Unadjusted Development Charge Per Sq.M $191.61
$2.55
6.0 WASTE MANAGEMENT $250.0 $221.2 $2.9 $0.0 $0.0 $26.0 100% $26.0 0% $0.00
Unadjusted Development Charge Per Capita
Unadjusted Development Charge Per Sq.M $20.55
$0.00
5.0 GENERAL GOVERNMENT $192.5 $57.5 $13.5 $0.0 $0.0 $121.5 55% $66.8 45% $54.68
Unadjusted Development Charge Per Capita $52.91
Unadjusted Development Charge Per Sq.M $0.71
TOTAL 10 YEAR GENERAL SERVICES $4,629.0 $2,047.3 $214.2 $178.0 $0.0 $2,189.6 $1,633.1 $556.4
Unadjusted Development Charge Per Capita $1,293.07
Unadjusted Development Charge Per Sq.M $7.18
HEMSON
29
the existing community. These portions of capital costs will likely be funded from
property taxes, user fees or other non - development charge revenue sources.
No shares of the forecast have been attributed to development occurring beyond the
2025 period. As such, all DC eligible capital costs are considered to be related to
development occurring over the 2016 -2025 planning period.
The DCA, s.5(1)8 requires that development- related net municipal costs for general
services be reduced by 10 per cent in calculating the applicable development charge.
The discount does not apply to emergency and fire services. The 10 per cent share of
development- related net municipal costs not included in the development charge
calculations must be funded from non - development charge sources. In total, about
$241,200 is identified as the required 10 per cent reduction.
Finally, available DC reserves in the amount of $178,000 are also excluded from the
DC eligible cost amount.
The total costs eligible for recovery through development charges for General Services
is $2.19 million. This amount is allocated between the residential and non - residential
sectors to derive the unadjusted development charges. Cemetery, Parks and
Recreation, and Waste Management are all deemed to benefit residential
development only, while the other services are allocated between both sectors based
on shares of population in new units and employment growth. Approximately $1.63
million of the general services development charges recoverable amount is deemed to
benefit residential development. When this amount is divided by the 10 -year
population growth in new units (1,263), an unadjusted charge of $1,293.07 per capita
is derived. The non - residential share of the general services capital program totals
$556,400 and when this amount is divided by the l0 -year forecast of new non-
residential space growth (77,500 square metres), an unadjusted charge of $7.18 per
square metre is derived.
B. UNADJUSTED DEVELOPMENT CHARGE CALCULATION FOR ENGINEERED
SERVICES
Table 6 describes the calculation of unadjusted rates for Engineered Services. The
capital program eligible for recovery through development charges is allocated to the
residential and non - residential sectors based on future shares of population and
HEMSON
30
TABLE 6
MUNICIPALITY OF KINCARDINE
SUMMARY OF UNADJUSTED RESIDENTIAL AND NON- RESIDENTIAL DEVELOPMENT CHARGES
16 -YEAR CAPITAL PROGRAM FOR ENGINEERED SERVICES
15 Year Growth in Population in New Units 1,985
15 Year Growth in Square Metres 118,072
Development - Related Capital Program (2016 - 2031)
Total DC
Service Net Replacement Eligible
Municipal & Benefit to Service Available Post -2031 Costs for Residential Non - Residential
Cost Existing Discount DC Reserves Benefit Recovery Share Share
($000) ($000) ($000) ($000) ($000) ($000) % ($000) % ($000)
1.0 ROADS AND RELATED $4,500.0 $3,000.0 $0.0 $0.0 $0.0 $1,500.0 56% $840.0 44% $660.00
Unadjusted Development Charge Per Capita $423.17
Unadjusted Development Charge Per Sq.M $5.59
2.0 WATER $3,000.0 $0.0 $0.0 $245.3 $0.0 $2,754.7 56% $1,542.6 44% $1,212.08
Unadjusted Development Charge Per Capita $777.15
Unadjusted Development Charge Per Sq.M $10.27
3.0 WASTEWATER $9,401.0 $2,714.9 $0.0 $405.6 $0.0 $6,280.5 56% $3,517.1 44% $2,763.43
Unadjusted Development Charge Per Capita $1,771.83
Unadjusted Development Charge Per Sq.M $23.40
TOTAL 21 YEAR ENGINEERED SERVICES $16,901.0 $5,714.9 $0.0 $650.9 $0.0 $10,535.2 $5,899.7 $4,635.5
Unadjusted Development Charge Per Capita $2,972.15
Unadjusted Development Charge Per Sq.M $39.26
HEMSON
31
employment growth. On this basis, the allocation to the residential and non-
residential sectors is calculated at 56 per cent and 44 per cent respectively. The
residential sector's "unadjusted" development charge is calculated at $2,972.15 per
capita. This was calculated by taking the residential share of the development - related
capital program ($5.90 million) and dividing it by the growth in population in new
units to 2031 (1,985).
The non - residential development charge is $39.26 per square metre. This was
calculated by taking the non - residential share of the development- related capital
program ($4.64 million) and dividing it by the growth in non - residential gross floor
area to 2031 (118,100).
C. ADJUSTED RESIDENTIAL AND NON - RESIDENTIAL DEVELOPMENT CHARGES
Final adjustments to the "unadjusted" development charge rates summarized above are
made through a cash flow analysis. The analysis, details of which are included in the
appendices, considers the borrowing cost and interest earnings associated with the
timing of expenditures and development charge receipts for each service.
Table 7 summarize the results of the adjustment for the residential development
charge rates. The adjusted per capita rate increases from $4,265.23 to $4,628.80 after
the cash flow analysis. Residential municipal -wide development charges are proposed
to vary by dwelling unit type to reflect their different occupancy factors and resulting
demand for services. The calculated residential development charges for all services
are shown in Table 7.
As shown in the table, the calculated residential charge ranges from $13,608 for a
single or semi - detached unit to $9,257 for rows and multiples and $6,944 for
apartment units.
The calculated non - residential development charges rates are presented in Table 8.
The calculated adjusted rate for new non - residential development is $50.63 per square
metre of GFA, which is an increase of $4.19 from the unadjusted rate of $46.44 per
square metre.
HEMSON
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TABLE 7
MUNICIPALITY OF KINCARDINE
MUNICIPAL -WIDE DEVELOPMENT CHARGES
RESIDENTIAL DEVELOPMENT CHARGES BY UNIT TYPE
Residential Charge By Unit Type (1)
Unadjusted Adjusted Charge Percentage of
Service Charge Per Singles & Rows & Other
Per Capita Apartments Charge
Capita Semis Multiples
Airport $0.00 $0.00 $0 $0 $0 0.0%
Cemetery $12.17 $13.08 $38 $26 $20 0.3%
Parks And Recreation $721.89 $752.70 $2,213 $1,505 $1,129 16.3%
Public Works & Municipal Fleet $293.94 $315.86 $929 $632 $474 6.8%
Fire Services $191.61 $191.30 $562 $383 $287 4.1%
Waste Management $20.55 $22.70 $67 $45 $34 0.5%
General Government $52.91 $56.14 $165 $112 $84 1.2%
Subtotal General Services $1,293.07 $1,351.78 $3,974 $2,703 $2,028 29.2%
Roads And Related $423.17 $494.02 $1,452 $988 $741 10.7%
Water $777.15 $765.27 $2,250 $1,531 $1,148 16.5%
Wastewater $1,771.83 $2,017.73 $5,932 $4,035 $3,027 43.6%
Subtotal Engineered Services $2,972.16 $3,277.02 $9,634 $6,554 $4,916 70.8%
TOTAL CHARGE PER UNIT $4,265.23 $4,628.80 I $13,608 $9,257 $6,944 100.0%
(1) Based on Persons Per Unit Of: 2.94 2.00 1.50
HEMSON
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TABLE 8
MUNICIPALITY OF KINCARDINE
MUNICIPAL -WIDE DEVELOPMENT CHARGES
NON - RESIDENTIAL DEVELOPMENT CHARGES PER SQUARE METRE
Unadjusted Adjusted Charge
Service Charge per
per Square Metre Percentage of
Square Metre of Gross Floor Charge
Area
Airport $0.00 $0.00 0.0%
Cemetery $0.00 $0.00 0.0%
Parks And Recreation $0.00 $0.00 0.0%
Public Works & Municipal Fleet $3.92 $4.21 8.3%
Fire Services $2.55 $2.55 5.0%
Waste Management $0.00 $0.00 0.0%
General Government $0.71 $0.75 1.5%
Subtotal General Services $7.18 $7.51 14.8%
Roads And Related $5.59 $6.50 12.8%
Water $10.27 $10.09 19.9%
Wastewater $23.40 $26.53 52.4%
Subtotal Engineered Services $39.26 $43.12 85.2%
TOTAL CHARGE PER SQUARE METRE $46.44 $50.63 I 100.0%
HEMSON
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D. COMPARISON OF 2016 NEWLY CALCULATED DEVELOPMENT CHARGES
WITH CHARGES CURRENTLY IN FORCE IN KINCARDINE
Tables 9 and 10 present a comparison of the newly calculated residential and non-
residential development charges with currently imposed development charge rates (as
of January 1, 2016).
Table 9 demonstrates that the residential development charge rate for a single- or
semi - detached unit increases by $5,977 per unit, or 78 per cent from the
Municipality's currently imposed charge. It should be noted that the current in -force
rates do not reflect what was fully calculated under the 2011 DC By -law. If the full
rates had been implemented as part of the last update, the Municipality's current DC
rates, indexed to current day, would amount to $13,019 per unit. Therefore, the
calculated rate of $13,608 per unit would represent an increase of $589, or
approximately five per cent.
The current development charges rate for non - residential development increases by
$17.80 per square metre, or 54 per cent, for general and engineered services. Similar to
the residential rates, Council did not implement the fully calculated non - residential
DCs calculated under the 2011 DC Study. If the Municipality had implemented the
fully calculated rate, the current charge, indexed to present day, would amount to
$42.69 per square metre. The calculated rate of "$50.63 would therefore represent a
$7.94 increase, or 19 per cent.
HEMSON
35
TABLE 9
MUNICIPALITY OF KINCARDINE
COMPARISON OF CURRENT IN -FORCE AND CALCULATED
RESIDENTIAL DEVELOPMENT CHARGES
Current Calculated
Service Residential Residential Difference in Charge
Charge /SDU Charge / SDU
Airport $0 $0 $0 0.0%
Cemetery $0 $38 $38 0.0%
Parks And Recreation $1,877 $2,213 $336 17.9%
Public Works & Municipal Fleet $0 $929 $929 0.0%
Fire Services $0 $562 $562 0.0%
Waste Management $0 $67 $67 0.0%
General Government $0 $165 $165 0.0%
Subtotal General Services $1,877 $3,974 $2,097 111.7%
Roads And Related $0 $1,452 $1,452 0.0%
Water $2,053 $2,250 $197 9.6%
Wastewater $3,700 $5,932 $2,232 60.3%
Subtotal Engineered Services $5,754 $9,634 $3,880 67.4%
TOTAL CHARGE PER UNIT $7,631 $13,608 I $5,977 78.3%
Notes:
Current in -force rates, fully phased -in and indexed to Jan 1 2016
Fully calculated, indexed rates from the 2011 DC Study amount to $13,019 per SDU
HEMSON
36
TABLE 10
MUNICIPALITY OF KINCARDINE
COMPARISON OF CURRENT IN -FORCE AND CALCULATED
NON - RESIDENTIAL DEVELOPMENT CHARGES
Current Non- Calculated
Service Residential Residential Difference in Charge
Charge / Sq.M. Charge / Sq.M.
Airport $0.00 $0.00 $0.00 0.0%
Cemetery $0.00 $0.00 $0.00 0.0%
Parks And Recreation $0.00 $0.00 $0.00 0.0%
Public Works & Municipal Fleet $0.00 $4.21 $4.21 0.0%
Fire Services $0.00 $2.55 $2.55 0.0%
Waste Management $0.00 $0.00 $0.00 0.0%
General Government $0.00 $0.75 $0.75 0.0%
Subtotal General Services $0.00 $7.51 $7.51 0.0%
Roads And Related $0.00 $6.50 $6.50 0.0%
Water $11.72 $10.09 ($1.63) - 13.9%
Wastewater $21.11 $26.53 $5.42 25.7%
Subtotal Engineered Services $32.83 $43.12 $10.29 31.3%
TOTAL CHARGE PER SQUARE METRE $32.83 $50.63 I $17.80 54.2%
Notes:
Current in -force rates, fully phased -in and indexed to Jan 1 2016
Fully calculated, indexed rates from the 2011 DC Study amount to $42.69 per square metre
HEMSON
37
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 MUNICIPALITY'S SERVICES ESTIMATED TO
INCREASE OVER THE FORECAST PERIOD
Table 11 summarizes the estimated increase in net operating costs that the
Municipality will experience for additions associated with the planned capital
program. These estimates are based on average costs derived from a review of recent
budgets (additional details are included in Appendix E).
As shown in Table 11, by 2025, the Municipality's net operating costs for tax -
supported services are estimated to increase by $321,300. The most significant portion
of this increase relates to the Parks and Recreation program, followed by the Roads
and Related program.
B. LONG -TERM CAPITAL FINANCING FROM NON - DEVELOPMENT CHARGE
SOURCES TOTALS $5.26 MILLION
Table 11 also summarizes the components of the development - related capital program
that will require funding from non - development charges sources for tax supported
services. Of the $9.13 million net capital program for tax supported services, about
$5.26 million will need to be financed from non - development charges sources over the
next 10 years. This includes about $214,200 with respects to the 10 per cent discount
required by the DCA for general services and about $5.05 million for shares of projects
related to capital replacement and for non - development shares of projects that provide
benefit to the existing community.
HEMSON
38
TABLE 11
MUNICIPALITY OF KINCARDINE
SUMMARY OF LONG TERM CAPITAL AND
OPERATING COST IMPACTS FOR TAX SUPPORTED SERVICES
(in thousands of constant dollars)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total
Net Operating Impacts (1)
Airport $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Cemetery $1.8 $1.8 $4.7 $4.7 $9.9 $9.9 $9.9 $9.9 $9.9 $9.9
Parks And Recreation $0.0 $0.0 $0.0 $0.0 $120.0 $120.0 $120.0 $120.0 $120.0 $120.0
Public Works & Municipal Fleet $0.0 $0.0 $0.0 $36.0 $36.0 $36.0 $36.0 $36.0 $36.0 $36.0
Fire Services $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Waste Management Services $5.1 $10.2 $15.3 $20.4 $25.6 $30.8 $36.0 $41.2 $46.5 $51.8
Roads and Related $10.3 $20.4 $30.6 $40.8 $51.2 $61.6 $72.0 $82.4 $93.0 $103.6
NET OPERATING IMPACTS $17.2 $32.4 $50.6 $101.9 $242.7 $258.2 $273.9 $289.5 $305.4 $321.3 n/a
Long -term Capital Impact (1)
Total Net Cost $176.5 $690.0 $4,235.0 $760.0 $1,215.0 $92.5 $1,915.0 $15.0 $15.0 $15.0 $9,129.0
Net Cost From Development Charges $75.0 $349.8 $1,079.3 $610.4 $609.1 $72.0 $853.5 $13.5 $13.5 $13.5 $3,689.6
Prior Growth Share from DC Reserve Balances (2) $0.0 $0.0 $122.4 $55.6 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $178.0
Portion for Post -2025 Development (3) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Funding From Non -DC Sources
Discount Portion $5.6 $2.8 $50.2 $74.0 $67.7 $8.0 $1.5 $1.5 $1.5 $1.5 $214.2
Replacement $95.9 $337.5 $2,983.2 $20.0 $538.2 $12.5 $1,060.0 $0.0 $0.0 $0.0 $5,047.3
FUNDING FROM NON -DC SOURCES $101.5 $340.3 $3,033.3 $94.0 $605.9 $20.5 $1,061.5 $1.5 $1.5 $1.5 $5,261.5
TOTAL NET OPERATING & CAPITAL IMPACTS $118.6 $372.6 $3,083.9 $195.9 $848.5 $278.7 $1,335.4 $291.0 $306.9 $322.8 n/a
Notes:
(1) See Appendix E
(2) Existing development charge reserve fund balances collected from growth prior to 2016 are applied to fund initial projects in development - related capital forecast
(3) Post 2025 development - related net capital costs may be eligible for development charge funding in future DC by -laws
HEMSON
39
VIII ASSET MANAGEMENT PLAN
The Development Charges Act was amended in late 2015 and, effective January 1st
2016, municipalities are required to complete an Asset Management Plan before the
passing of a development charges by -law. A key function of the Asset Management
Plan is to demonstrate that all assets proposed to be funded under the development
charges by -law are financially sustainable over their full life cycle.
A. ANNUAL CAPITAL PROVISIONS WILL REACH $221,200 BY 2025
Table 12 summarizes the annual capital provisions required to replace the capital
infrastructure proposed to be funded under the development charges by -law. This
estimate is based on information obtained through discussions with municipal staff
regarding useful life assumptions and the capital cost of acquiring and /or emplacing
each asset.
Table 12 illustrates that, by 2025, the Municipality will need to fund an additional
$221,200 per annum (including $130,270 tax supported and $90,930 rate supported)
in order to properly fund the full life cycle costs of the new assets supported under this
development charges by -law. The calculated tax supported life cycle funding
requirement of $130,270 equates to 0.85 per cent of the Municipality's 2015 total own
source revenues of $15.35 million (including a tax levy of $13.12 million and user
fees /charges of $2.16 million). The calculated utility rate support life cycle funding
requirement of $90,930 represents 2.03 per cent of the Municipality's total water and
sewer revenues of $4.47 million.
The calculated annual funding provision should be considered within the context of
the Municipality's projected growth; over the next 10 years (to 2025) the
Municipality is projecting an increase of approximately 520 total private dwellings
units as well as roughly 1,030 new employees. This growth will have the effect of
increasing the overall assessment base and additional user fee and charges revenues to
offset the capital asset provisions required to replace the infrastructure proposed to be
funded under the development charges by -law.
HEMSON
40
The calculated annual provisions identified are considered to be financially
sustainable as it is expected that the increased capital asset management requirements
can be absorbed by the tax and user base over the long -term.
HEMSON
41
TABLE 12
MUNICIPALITY OF KINCARDINE
SUMMARY OF CALCULATED ANNUAL PROVISIONS
Service 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Fire Services $ - $ - $ - $ - $ - $ - $ - $ 25,156 $ 25,156 $ 25,156
Parks and Recreation $ - $ 378 $ 765 $ 14,270 $ 18,516 $ 37,248 $ 37,666 $ 38,093 $ 38,527 $ 38,971
Cemetery $ - $ 78 $ 78 $ 209 $ 209 $ 414 $ 414 $ 414 $ 414 $ 414
Public Works $ - $ - $ - $ - $ 23,583 $ 23,583 $ 23,583 $ 23,583 $ 23,583 $ 23,583
Waste Management $ - $ - $ - $ 5,401 $ 5,401 $ 5,401 $ 5,401 $ 5,401 $ 5,401 $ 5,401
Road Replacement $ - $ - $ 12,308 $ 27,798 $ 27,798 $ 27,798 $ 27,798 $ 36,741 $ 36,741 $ 36,741
Water $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Wastewater $ - $ - $ - $ 23,272 $ 23,272 $ 90,930 $ 90,930 $ 90,930 $ 90,930 $ 90,930
Total $ - $ 456 $ 13,150 $ 70,950 $ 98,779 $ 185,375 $ 185,793 $ 220,318 $ 220,753 $ 221,196
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I X DEVELOPMENT CHARGES ADMINISTRATION
A. DEVELOPMENT CHARGE ADMINISTRATION
• As required under the DCA, the Municipality should codify any rules regarding
the application of the by -law and any exemptions within the development
charges by -law proposed for adoption;
• The proposed draft by -law sets out the rules to determine development charges
applicable in any particular case. Rules for exemptions, potential reductions,
and redevelopment of land will be presented in the staff report at the statutory
public meeting;
• It is recommended that limited exemptions, other than those required in the
DCA be formally adopted in the by -laws; and
• It is recommended that Council adopt the development- related capital program
included in this background study, subject to annual review through the
Municipality's normal capital budget process.
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APPENDIX A
DEVELOPMENT FORECAST
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APPENDIX A
DEVELOPMENT FORECAST
This appendix provides the details of the development forecast used in the
preparation of the 2016 Development Charges Background Study for the
Municipality of Kincardine. The forecast methodology, key inputs and assumptions
are discussed here in detail in the following tables:
Historical Development
Table 1 Historical Population, Total Dwellings & Employment Summary
Table 2 Historical Annual Housing Completions (CMHC)
Table 3 Historical Annual Residential Building Permits
Table 4 Historical Households by Period of Construction Showing Household
Size
Forecast Development
Table 5 Population, Total Dwelling & Employment Forecast Summary
Table 6 Forecast of Household Growth by Unit Type
Table 7 Forecast Population in New Households by Unit Type
Table 8 Non - Residential Space Forecast
The population, housing and employment forecasts are for the entire municipality,
including the smaller communities and the rural area within Kincardine. The
forecast takes into consideration data from the 2011 Census, recent housing
completions, the Municipality's historical building permit data and the Municipal
and County Official Plan. The results of the forecasts are provided in a series of
tables.
A. FORECAST AND KEY ASSUMPTIONS •
The Development Charges Act (DCA) requires the Municipality to estimate "the
anticipated amount, type and location of development" for which development
charges may be imposed. The development 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 Municipality to prepare a
reasonable development- related capital program.
A ten -year development forecast, from 2016 to 2025, has been used for all the
development charge eligible general services in the Municipality. For Roads and
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Related, Water and Wastewater services, a long -term forecast from 2016 to 2031 has
been used.
B. HISTORICAL DEVELOPMENT IN THE MUNICIPALITY
Historical growth and development figures presented here are based on Statistics
Canada Census data, Canada Mortgage Housing Corporation (CMHC) housing
market information, and municipal building permit and development application
data. A "Census- based" definition of population is used for the purpose of the
development charges study. This definition does not include the Census net
undercoverage, which is typically included in the definition of "total" population
commonly used in municipal planning documents. For development charges
purposes, a ten -year historical period of 2006 to 2015 is used for calculating historical
service levels. Since 2011 was the last year of the Census, figures from 2012 to 2015
are estimated.
The Municipality of Kincardine has experienced relatively limited amount of
population growth over the last ten years. Conversely, household growth has
remained steady over the same time period. As shown in Table 1, the Municipality's
population increased from 11,145 people in 2005 to 11,360 in 2015. This represents
an increase of two per cent. The number of private dwelling units in the
Municipality also increased during the ten -year historical period from 5,410 to 5,880
private occupied households in 2015 — a nine per cent increase. The difference
between the rates of population and dwelling unit growth is the result of a decline in
the average number of persons residing in housing units.
Historical employment figures are also shown in Table 1 and are based on Statistics
Canada place of work data. Place of work data records where people work rather
than the place of residence. The employment figures used for development charge
calculations include workers with no fixed place of work, but exclude work at home
employment. Overall, the Municipality's employment growth has increased over the
last ten years from 9,010 in 2005 to 12,060 employees in 2015, this represents an
increase of 34 per cent. The Municipality's activity rate (the ratio of employment to
population) has also increased over this period, from approximately 81 per cent in
2005 to 106 per cent in 2015.
Details on historical housing unit growth in the Municipality are provided in Tables
2 (housing completions) and 3 (building permits issued). The information in Table 1
is sourced from Canada Mortgage and Housing Corporation Housing Market
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Information. Overall, the dominant type of housing in Kincardine constructed since
2008 has historically been single and semi - detached housing (71 per cent). This is
followed by row dwelling units (24 per cent) and finally, apartment dwellings (5 per
cent). Table 2 provides details on the Municipality's historical building permits from
2004 to 2015 which is reported based on singles and semis and multi -unit dwellings.
Table 4 provides details on historical occupancy patterns in the Municipality. The
overall average occupancy level in Kincardine for recently constructed single and
semi- detached units, constructed between 2001 and 2011, is 2.94 persons per
housing unit (PPU). Occupancy levels for recently constructed units, between 2001
and 2011, are higher than the overall average and are used in the development
charges calculation since it better reflects the number of people that are likely to
reside in new developments. For other unit types such as row housing and apartments
(excluding duplexes) there is insufficient data to determine the PPUs for these units
over the same period. For the purposes of calculating the population residing in new
dwelling units over the forecast periods, the following PPU values were used:
• Singles /Semis 2.94
• Rows and Other Multiples 2.00
• Apartments 1.50
As sufficient information was not available to determine the PPUs for rows and
apartments assumptions based on discussions with Municipal staff and also
development trends in similar municipalities were made.
C. FORECAST METHOD AND RESULTS
This section describes the method used to establish the ten -year and longer -term
development charges forecast for the planning periods 2016 to 2025 and 2016 to
2031.
Development charges are levied on residential development as a charge per new
unit. Therefore, for the residential forecast, a projection of both the population
growths as well as the population in new housing is required.
1 Commonly referred to as "net population growth" in the context of development charges.
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• The population growth determines the need for additional facilities and
provides the foundation for the development- related capital program.
• When calculating the development charge, however, the development- related
net capital costs are spread over the total additional population that occupies
new dwelling units. This population in new units represents the population
from which development charges will be collected.
Development charges are levied on non - residential development as a charge per unit
of gross floor area (GFA). The non - residential forecast includes both a projection of
employment growth as well as a projection of the floor space associated with
employment growth associated with new floor space in the Municipality.
1. Residential Forecast
The residential development forecast incorporates anticipated growth in population
and private dwellings. As detailed in Table 5, the Municipality's Census population
is forecast to grow from 11,370 in 2015 to 12,340 in 2025. The ten -year population
growth (970 persons) represents an nine per cent increase over the existing base.
Over the longer planning period to 2031, the population of Municipality is
anticipated to increase to 12,850 persons.
Table 5 also provides a forecast for both private and occupied dwelling units. The
private dwelling units, which is used as the basis of the development charge
calculations, represent both seasonal and permanent housing growth. Over the ten -
year planning period from 2016 to 2025, the number of total private housing units is
forecast to increase from 5,880 in 2015 to 6,400 in 2025. This growth represents an
increase of nine per cent, or 520 units. This number is expected to reach 6,680 units
in 2031.
A breakdown of anticipated housing in the Municipality of Kincardine by unit type
over the ten -year forecast period is shown in Table 6. The type of housing in the
Municipality is forecast to change in composition. Historically, the dominant type of
housing in Kincardine has been single and semi- detached dwelling units (Tables 2
and 3). Based on recent development trends, Municipal planning staff anticipate
that the housing mix will shift to higher densities in the form of rows and other
multiples or apartment units. For this reason, the forecast anticipates that over the
longer -term planning period from 2016 -2031, 62 per cent of units constructed will be
singles and semis, 22 per cent will be rows and multiples and 16 per cent will be
apartments. It should be noted that the ten -year forecast reflects an increase in
apartment unit construction based on anticipated development applications.
Population growth in the new units is estimated by applying the following PPUs to
the housing unit forecast: 2.94 for single and semi - detached units and 2.00 for rows
and other multiples and 1.50 for apartments. The forecast of population expected to
reside in these new housing units over the 2016 to 2025 period is 1,260 additional
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persons. Over the longer -term planning period to 2031, an additional 1,985 persons
are anticipated to be accommodated. This population growth in new units is shown
in Tables 7.
2. Non - Residential Forecast
Table 5 shows that the total Census employment is forecast to grow by 1,030 jobs
over the ten -year forecast period to 2025. This growth from 12,070 employees in
2015 to 13,100 in 2025 represents an increase of nine per cent. Over the longer -term
planning horizon to 2031, the Municipality if anticipated to add an additional 1,570
employees, an increase of 13 per cent. The non - residential growth forecast assumes
that the Municipality's current activity rate of 106 per cent will be maintained over
the ten -year and longer -term planning horizon.
Non - residential development charges are calculated on a per unit of gross floor are
(GFA) basis and, as per the DCA, a forecast of future non - residential building space
has been developed. As with the residential forecast, the GFA forecast covers the
ten -year period from 2016 to 2025 for general services, and a longer -term forecast to
2031 for the engineered services. These forecasts are shown in Table 8.
An assumed floor space per worker (FSW) of 75 square metres is applied to the
employment forecast in order to project growth in new non - residential space in the
Municipality. The overall growth in new non - residential building space across the
Municipality between 2016 and 2025 is 77,500 square metres and 118,100 to 2031.
D. CONSIDERATION FOR AREA -RATED SERVICES
In accordance with the recent changes to s.10(2) of the DCA, a development charge
background study must give consideration for "the use of more than one
development charge by -law to reflect different needs for services in different areas':
Following consultation with Municipal staff, and in review of the Municipality's
relevant master planning documents, it was determined that a municipal -wide
approach continues to be most appropriate for the nature of the works and services
provided in Kincardine, and as such, only a Municipal -wide charge has been
proposed.
The table below provides a summary of the needs for servicing in different areas.
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Municipal Services Needs for Servicing in Different Areas
Considered
General Services • Open and accessible to all residents in the Municipality
• Planning for these services is typically driven by Municipal -wide population or
population and employment growth
Engineered Services • Services are providing through the Municipal -wide roads network, water and
wastewater treatment facilities etc.
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APPENDIX A - TABLE 1
MUNICIPALITY OF KINCARDINE
HISTORICAL POPULATION, TOTAL DWELLINGS & EMPLOYMENT SUMMARY
Mid -Year Census Annual Total Private Annual Occupied Private Annual HH Size Employment Annual
Activity Rate
Population Growth Dwellings Growth Dwellings Growth (PPU) by POW Growth
2001 11,029 5,257 4,315 2.56 7,937 72.0%
2002 11,058 29 5,294 37 4,368 53 2.53 8,192 255 74.1%
2003 11,087 29 5,332 38 4,422 54 2.51 8,456 264 76.3%
2004 11,116 29 5,370 38 4,476 54 2.48 8,728 272 78.5%
2005 11,145 29 5,408 38 4,531 55 2.46 9,009 281 80.8%
2006 11,173 28 5,447 39 4,586 55 2.44 9,301 292 83.2%
2007 11,173 0 5,514 67 4,611 25 2.42 9,765 464 87.4%
2008 11,173 0 5,582 68 4,636 25 2.41 10,253 488 91.8%
2009 11,173 0 5,650 68 4,661 25 2.40 10,765 512 96.3%
2010 11,173 0 5,719 69 4,686 25 2.38 11,303 538 101.2%
2011 11,174 1 5,789 70 4,710 24 2.37 11,868 565 106.2%
2012 11,188 14 5,796 7 4,716 6 2.37 11,882 14 106.2%
2013 11,218 31 5,812 16 4,729 13 2.37 11,915 33 106.2%
2014 11,276 58 5,842 30 4,753 24 2.37 11,977 62 106.2%
2015. 11,357 81 5,884 42 4,787 34 2.37 12,063 86 106.2%
Growth 2006 -2015 212 476 256 3,054
Source: Statistics Canada, Census of Canada
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APPENDIX A - TABLE 2
MUNICIPALITY OF KINCARDINE
HISTORICAL ANNUAL HOUSING COMPLETIONS (CMHC)
CMHC Annual Housing Completions - Units Completions - Shares By Unit Type
Year Singles & Semis Rows Apts. Total Singles & Semis Rows Apts. Total
2008 28 0 0 28 100% 0% 0% 100%
2009 20 15 0 35 57% 43% 0% 100%
2010 22 14 0 36 61% 39% 0% 100%
2011 28 0 0 28 100% 0% 0% 100%
2012 7 0 0 7 100% 0% 0% 100%
2013 16 0 0 16 100% 0% 0% 100%
2014 22 0 8 30 73% 0% 27% 100%
2015 14 24 4 42 33% 57% 10% 100%
Total 157 53 12 222 71% 24% 5% 100%
5 Year Avg. 17 5 2 25
Source: Canada Mortgage and Housing Corporation (CMHC), Housing Market Information
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APPENDIX A - TABLE 3
MUNICIPALITY OF KINCARDINE
HISTORICAL ANNUAL RESIDENTIAL BUILDING PERMITS
Annual Building Permits Building Permits - Shares By Unit Type
Year Singles /Semis Multi -Unit Total Singles /Semis Multi -Unit Total
2004 70 2 72 97% 3% 100%
2005 61 1 62 98% 2% 100%
2006 49 5 54 91% 9% 100%
2007 80 6 86 93% 7% 100%
2008 59 1 60 98% 2% 100%
2009 36 3 39 92% 8% 100%
2010 53 1 54 98% 2% 100%
2011 33 2 35 94% 6% 100%
2012 30 7 37 81% 19% 100%
2013 34 8 42 81% 19% 100%
2014 28 46 74 38% 62% 100%
2015 30 29 59 51% 49% 100%
Total 563 111 674 84% 16% 100%
Last 10 Years 43 11 54
Last 5 Years 31 18 49
Source: Municipality of Kincardine
II I
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APPENDIX A - TABLE 4
MUNICIPALITY OF KINCARDINE
HISTORICAL HOUSEHOLDS BY PERIOD OF CONSTRUCTION SHOWING HOUSEHOLD SIZE
Period of Construction Period of Construction Summaries
Dwelling Unit Type Pre 1945 1946-1960 1961 -1970 1971 -1980 1981 -1985 1986-1990 1991 -1995 1996-2000 2001 -2005 2006 -2011 Pre -2001 2001 -2011 Total
Singles
Household Population 2,225 300 420 2,625 800 945 530 290 545 960 8,135 1,505 9,640
Households 885 170 210 1,100 340 380 185 100 200 300 3,370 500 3,870
Household Size 2.51 1.76 2.00 2.39 2.35 2.49 2.86 2.90 2.73 3.20 2.41 3.01 2.49
Semis
Household Population 0 0 0 160 0 0 0 0 0 40 160 40 200
Households 0 0 0 60 0 0 0 0 0 25 60 25 85
Household Size n/a n/a n/a 2.67 n/a n/a n/a n/a n/a 1.60 2.67 1.60 2.35
Singles and Semis
Household Population 2,225 300 420 2,785 800 945 530 290 545 1,000 8,295 1,545 9,840
Households 885 170 210 1,160 340 380 185 100 200 325 3,430 525 3,955
Household Size 2.51 1.76 2.00 2.40 2.35 2.49 2.86 2.90 2.73 3.08 2.42 2.94 2.49
Rows
Household Population 0 0 0 215 45 0 0 0 0 0 260 ' 0 260
Households 0 0 0 130 40 0 0 0 0 0 170 0 170
Household Size n/a n/a n/a 1.65 1.13 n/a n/a n/a n/a n/a 1.53 n/a 1.53
Apartments (excl. Duplexes)
Household Population 115 65 35 135 0 40 0 0 0 0 390 0 390
Households 110 35 35 130 0 30 0 0 0 0 340 0 340
Household Size 1.05 1.86 1.00 1.04 n/a 1.33 n/a n/a n/a n/a 1.15 n/a 1.15
Duplexes
Household Population 105 0 0 0 0 0 0 0 0 0 105 0 105
Households 45 0 0 0 0 0 0 0 0 0 45 0 45
Household Size 2.33 n/a n/a n/a n/a n/a n/a n/a n/a n/a 2.33 n/a 2.33
All Units
Household Population 2,445 365 455 3,135 845 985 530 290 545 1,000 9,050 1,545 10,595
Households 1,040 205 245 1,420 380 410 185 100 200 325 3,985 525 4,510
Household Size 2.35 1.78 1.86 2.21 2.22 2.40 2.86 2.90 2.73 3.08 2.27 2.94 2.35
Source: Statistics Canada, 2011 National Household Survey Special Run.
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APPENDIX A - TABLE 5
MUNICIPALITY OF KINCARDINE
POPULATION, TOTAL DWELLING & EMPLOYMENT FORECAST SUMMARY
Census Census Total Private Total Private Occupied Occupied Household Employment Employment by
Mid -Year Population Pop'n Growth Dwellings Dwellings Dwellings Dwelling Growth Size by POW POW Growth Activity Rate
Growth
2011 11,174 5,789 4,710 2.37 11,868 106.2%
2012 11,197 23 5,796 7 4,716 6 2.37 11,892 24 106.2%
2013 11,228 31 5,812 16 4,729 13 2.37 11,925 33 106.2%
2014 11,286 58 5,842 30 4,753 24 2.37 11,986 62. 106.2%
2015 11,367 81 5,884 42 4,787 34 2.37 12,073 86 106.2%
2016 11,466 99 5,935 51 4,829 42 2.37 12,178 105 106.2%
2017 11,563 97 5,986 51 4,870 41 2.37 12,281 103 106.2%
2018 11,660 97 6,037 51 4,911 41 2.37 12,385 103 106.2%
2019 11,760 100 6,088 51 4,953 42 2.37 12,490 106 106.2%
2020 11,860 100 6,140 52 4,995 42 2.37 12,596 106 106.2%
2021 11,936 76 6,192 52 5,038 43 2.37 12,677 81 106.2%
2022 12,036 100 6,244 52 5,080 42 2.37 12,784 106 106.2%
2023 12,136 100 6,296 52 5,122 42 2.37 12,889 106 106.2%
2024 12,238 102 6,349 53 5,165 43 2.37 12,998 108 106.2%
2025 12,340 102 6,402 53 5,208 43 2.37 13,106 108 106.2%
2026 12,417 77 6,455 53 5,252 44 2.36 13,188 82 106.2%
2027 12,503 86 6,499 44 5,288 36 2.36 13,279 91 106.2%
2028 12,588 85 6,544 45 5,324 36 2.36 13,370 90 106.2%
2029 12,675 87 6,589 45 5,361 37 2.36 13,462 93 106.2%
2030 12,763 87 6,634 45 5,398 37 2.36 13,555 93 106.2%
2031 12,849 86 6,679 45 5,434 36 2.36 13,647 91 106.2%
2016 -2025 973 518 421 1,033
2026 -2031 509 277 226 541
2016 -2031 1,482 795 647 1,574
Source: Hemson Consulting Ltd. 2016
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APPENDIX A - TABLE 6
MUNICIPALITY OF KINCARDINE
FORECAST OF HOUSEHOLD GROWTH BY UNIT TYPE
Annual Growth in Total Private Dwellings Shares By Unit Type
Singles & Rows & Other Total New Singles & Rows & Other
Apartments Apartments
Mid -Year Semis Multiples Households Semis Multiples Total
2011 50 17 4 70 70% 24% 6% 100%
2012 5 2 0 7 71% 29% 0% 100%
2013 11 4 1 16 69% 25% 6% 100%
2014 21 7 2 30 70% 23% 7% 100%
2015 30 10 2 42 71% 24% 5% 100%
2016 36 10 5 51 70% 20% 10% 100%
2017 30 11 10 51 59% 21% 20% 100%
2018 28 10 13 51 55% 20% 25% 100%
2019 26 10 15 51 51% 19% 30% 100%
2020 23 11 18 52 44% 21% 35% 100%
2021 29 10 13 52 56% 19% 25% 100%
2022 28 14 10 52 54% 26% 20% 100%
2023 31 13 8 52 60% 25% 15% 100%
2024 34 14 5 53 64% 26% 10% 100%
2025 34 14 5 53 64% 26% 10% 100%
2026 34 14 5 53 64% 27% 9% 100%
2027 31 9 4 44 70% 21% 9% 100%
2028 32 9 4 45 71% 20% 9% 100%
2029 32 9 4 45 71% 20% 9% 100%
2030 32 9 4 45 71% 20% 9% 100%
2031 32 9 4 45 70% 20% 9% 100%
2016 -2025 299 116 103 518 58% 22% 20% 100%
2026 -2031 193 59 26 277 70% 21% 9% 100%
2016 -2031 492 174 129 795 62% 22% 16% 100% _
Source: Hemson Consulting Ltd. 2016
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APPENDIX A - TABLE 7
MUNICIPALITY OF KINCARDINE
FORECAST POPULATION GROWTH IN NEW HOUSEHOLDS BY UNIT TYPE*
Singles & Rows & Other Total Population
Mid -Year Semis Multiples Apartments in New
Households
2011 147 34 6 187
2012 15 4 0 19
2013 32 8 2 42
2014 62 14 3 79
2015 88 20 3 111
2016 106 20 8 134
2017 88 21 15 124
2018 82 21 19 122
2019 76 19 23 118
2020 68 22 27 117
2021 85 20 19 124
2022 82 27 16 125
2023 91 26 12 129
2024 100 27 8 135
2025 100 27 8 135
2026 100 28 7 135
2027 91 18 6 115
2028 94 18 6 118
2029 94 18 6 118
2030 94 18 6 118 -
2031 94 18 6 118
2016 -2025 878 230 155 1,263
2026 -2031 567 118 37 722
2016 -2031 1,445 348 192 1,985
`Based on PPUs 2.94 2.00 1.50
Source: Hemson Consulting Ltd., 2016
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APPENDIX A - TABLE 8
MUNICIPALITY OF KINCARDINE
NON - RESIDENTIAL SPACE FORECAST
Employment Density
All Employment Types 75 m per employee
Year Total Emp Empl Growth Growth i 2 Space
)
2011 11,868
2012 11,892 24 1,804
2013 11,925 33 2,462
2014 11,986 62 4,616
2015 12,073 86 6,463
2016 12,178 105 7,892
2017 12,281 103 7,751
2018 12,385 103 7,755
2019 12,490 106 7,944
2020 12,596 106 7,944
2021 12,677 81 6,078
2022 12,784 106 7,976
2023 12,889 106 7,927
2024 12,998 108 8,116
2025 13,106 108 8,116
2026 13,188 82 6,149
2027 13,279 91 6,844
2028 13,370 90 6,780
2029 13,462 93 6,969 1
2030 13,555 93 6,969
2031 13,647 91 6,862
2016 -2025 1,033 77,499
2026 -2031 541 40,573
2016 -2031 1,574 118,072
Source: Hemson Consulting Ltd. 2016
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APPENDIX B
GENERAL SERVICES
TECHNICAL APPENDIX
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APPENDIX B
GENERAL SERVICES TECHNICAL APPENDIX
INTRODUCTION AND OVERVIEW
The following appendix provides the detailed analysis undertaken to establish the
development charge rates for each of the general services in the Municipality of
Kincardine. Seven general services have been analysed as part of the development
charges study:
Appendix B.1 Airport
Appendix B.2 Cemetery
Appendix B.3 Parks and Recreation
Appendix B.4 Public Works
Appendix B.5 Fire Services
Appendix B.6 Waste Management Services
Appendix B.7 General Government
Every service, 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 charge rates for that particular service. An overview of
the content and purpose of each of the tables is given below.
TABLE 1 HISTORICAL SERVICE LEVELS
Table 1 presents the data used to determine the ten -year historical service level. The
DCA and 0. Reg. 82/98 require that development charges be set at a level no higher
than the average service level provided in the municipality 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 2006 to 2015.
0. Reg. 82/98 requires that when defining and determining historical 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. The qualitative aspect is
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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 cost 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 funded by new growth reflect not
only the quantity (number and size) but also the quality (replacement value or cost)
of service provided by the municipality in the past. Both the quantitative and
qualitative aspects of service levels used in the current analysis are based on
information provided by municipal staff. This information is generally based on
historical records and experience with costs to acquire or construct similar facilities,
equipment and infrastructure.
The approach used to calculate service levels and maximum funding envelopes is
described as follows: for those services with only a residential impact (Cemetery,
Parks and Recreation, and Waste Management), the service level measure of net
population has been utilized. For the remaining services that levy both a residential
and non - residential charge, the service level measure of net population and
employment has been utilized.
There is also a requirement in the DCA to consider "excess capacity" within the
Municipality'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 cost is eligible for recovery. Should uncommitted excess capacity
exist, it is determined whether or not this capacity will be available to service new
development and, if so, deductions to maximum allowable funding envelope are
required.
Table 1 shows the calculation of the maximum allowable funding envelope, net of
uncommitted excess capacity and the legislated ten per cent reduction (for all
applicable services). The maximum allowable funding envelope is defined as the ten -
year historical service level (expressed as either $ /capita or $ /population &
employment) multiplied by the forecast increase in net population growth, or net
population and employment growth, 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 historical service level is maintained.
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TABLE 2 2016 — 2025 DEVELOPMENT - RELATED CAPITAL PROGRAM
The DCA requires that Council express its intent to provide future capital facilities
to support future growth. Based on the growth forecasts presented in Appendix A,
•
Hemson Consulting in collaboration with municipal staff have established a
development - related capital program which sets out the projects required to service
anticipated growth for the ten -year period from 2016 to 2025.
To determine the share of the program that is eligible for recovery through
development charges, the project costs are reduced by any "replacement" shares and
the legislated "10 per cent reduction" for any eligible services.
A replacement share occurs when a new facility will at least in part replace a facility
that is demolished, redeployed or will otherwise not be available to serve its former
function. The replacement share of the capital program is not deemed to be
development - related and is therefore removed from the development charge
calculation. The capital cost for replacement will require funding from non-
development charge sources, typically property taxes or user fees.
When calculating development charges, the development- related net capital cost
must be reduced by ten per cent for all services except protection services and
engineered services (DCA s.5.(1)8.). The ten per cent discount is therefore applied
to all general services considered in this appendix. As with replacement shares, the
ten per cent mandatory reduction must be funded from non - development charge
sources.
The capital program less any replacement or benefit to existing shares, ten per cent
discount, yields the net DC eligible costs. Although deemed development- related,
not all of the net development - related capital program may be recoverable from
development charges in the period from 2016 to 2025. For some of the services, a
portion of the capital program will service growth that will not occur until after
2025. 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.
The remaining portion of the net capital program represents the development -
related cost that may be included in the development charge. In all cases, as
required, this amount is equal to or less than the maximum allowable capital amount
as calculated on the final page of Table 1. The result is the discounted development-
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62
related net capital cost that is eligible for recovery against growth over the period
from 2016 to 2025.
Calculation of the Unadjusted Development Charge Rates
The section below the capital program displays the calculation of the "unadjusted"
development charge rates. The term "unadjusted" development charge is used to
distinguish the charge that is calculated prior to cash flow financing considerations.
The cash flow analysis is shown in Table 3.
The first step when determining the unadjusted development charge rate is to
allocate the development - related net capital cost between the residential and non-
residential sectors. For all general services with the exception of Cemetery, Parks and
Recreation, and Waste Management Services the development - related costs have
been apportioned as 55 per cent residential and 45 per cent non - residential. This
apportionment is based on the anticipated shares of population in new units and
employment growth over the ten -year forecast period.
The development- related costs associated with the Cemetery, Parks and Recreation
and Waste Management have been allocated 100 per cent to the residential sector
given that the need for these services is generally driven by residential development.
The residential share of the 2016 -2025 DC eligible costs are then divided by the
forecast population growth in new units. This gives the unadjusted residential
development charge per capita. The non - residential growth- related net capital 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 development - 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.
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63
In order to determine appropriate development charges rates reflecting borrowing
and earnings necessary to support the net development- 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.
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APPENDIX B.1
AIRPORT
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APPENDIX B.1
AIRPORT
The Kincardine Airport is owned and operated by the Municipality of Kincardine.
With its two paved runways, the airport offers services for private pilots, visiting
aircraft, flight training, rental aircraft, medevac, helicopters and aircraft servicing the
needs of local companies.
TABLE 1 2006 -2015 HISTORICAL SERVICE LEVELS
The Airport inventory of capital assets includes three buildings namely, the Airport
Office and Terminal, Airport Hanger and the Airport House which was demolished
in 2011. The combined area of the buildings in 2015 equals 9,400 square feet, valued
at approximately $886,000. The airport buildings occupy 49.16 hectares of land
worth $17.21 million. The total value of equipment and infrastructure amount to
$613,800. The airport lands, runways and parking lots add another $2.98 million to
the inventory.
The current value of the total Airport capital infrastructure including buildings,
land, furniture and equipment is valued at approximately $21.69 million and has
provided Kincardine with a ten -year average historical service level of $972.89 per
capita and employee.
The calculated maximum allowable recoverable through development charges is
$1.95 million (2,006 net population and employment growth X historical service
level of $972.89 per capita and employee). There is no excess capacity identified,
however this service must be reduced by the legislated ten per cent, leaving $1.76
million to be brought forward to the development charges calculation.
TABLE 2 2016 - 2025 DEVELOPMENT - RELATED CAPITAL PROGRAM &
CALCULATION OF THE UNADJUSTED DEVELOPMENT CHARGE
Since the 2011, the Municipality has undertaken a number of development- related
capital projects related to the airport that were identified in the previous
development charges background study. As a result of these completed works, the
Municipality has not identified any new development - related capital projects over
the 2016 -2025 planning period. However, the Municipality will continue to review
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66
the increase in need for airport services and the related capital projects in subsequent
development charge background studies.
As no development - related costs are identified for the service, there is no
development charge proposed for Airport Services in the study.
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67
APPENDIX B.1
TABLE I - PAGE 1
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
AIRPORT
# of Square Feet UNIT COST
BUILDINGS
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($/sq.ft.)
Airport Office & Terminal 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 $131
Airport Hangar 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 $67
Airport House 4,375 4,375 4,375 4,375 4,375 - - - - - $62
Total (sq.tt.) 13,775 13,775 13,775 13,775 13,775 9,400 9,400 9,400 9,400 9,400
Total ($000) $1,156.5 $1,156.5 $1,166.5 $1,156.5 $1,156.5 $886.0 $886.0 $886.0 $886.0 $886.0
# of Hectares UNIT COST l
LAND
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($Iha)
Airport Office & Terminal 1.41 1.41 1.41 1.41 1.41 1.41 1.41 1.41 1.41 1.41 $350,000
Airport Hangar 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 $350,000
Other Airport Land (i.e. Runway) 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 46.00 $350,000
Total (ha) 49.16 49.16 49.16 49.16 49.16 49.16 49.16 49.16 49.16 49.16
Total ($000) 17,206.00 $17,206.0 $17,206.0 $17,206.0 $17,206.0 $17,206.0 $17,206.0 $17,206.0 $17,206.0 $17,206.0
Total Value of Equipment & Infrastructure ($)
EQUIPMENT & INFRASTRUCTURE
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Lounge Furniture $1,910 $1,910 $1,910 $1,910 $1,910 $1,910 $1,910 $1,910 $1,910 $1,910
Speciality Equipment $333,500 $333,500 $333,500 $333,500 $333,500 $333,500 $333,500 $333,500 $353,300 $353,300
Communication Equipment $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500
Fencing $4,180 $4,180 $4,180 $4,180 $4,180 $4,180 $4,180 $4,180 $4,180 $4,180
lighting Systems $17,350_ $17,350 $17,350 $17,350 $17,350 $17,350 _ $17,350 $17,350 $17,350 $17,350
Airport Taxiway $0 $0 $0 $0_ $0 $0 $107,200 $107,200 $107,200 $107,200
Fuel System $0 $0 $0 $0 $0 $124,320 $124,320 $124,320 $124,320 $124,320
Total ($000) $362.4 $362.4 $362.4 $362.4 $362.4 $486.8 $594.0 $594.0 $613.8 $613.8
RUNWAYS & PARKING LOTS Total Value of Runways & Parking Lots ($)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Airport Lands $215,498 $215,498 $215,498 $215,498 $215,498 $215,498 $215,498 $215,498 $215,498 $215,498
Runways _ $2,662,643 $2,662,643 $2,662,643 $2,662,643 $2,662,643 $2,662,643 $2,662,643 $2,662,643 $2,662,643 $2,662,643
Parking Lots $85,006 $85,006 $85,006 $85,006 $85,006 $85,006 $85,006 $85,006 $85,006 $85,006
Asphalt Access Road $0 $0, $0 $0 $0 $0 $0 $0 $20,500 $20,500
Total ($000) $2,963.1 $2,963.1 $2,963.1 $2,963.1 $2,963.1 $2,963.1 $2,963.1 $2,963.1 $2,983.6 $2,983.6
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APPENDIX B.1
TABLE 1 - PAGE 2
MUNICIPALITY OF KINCARDINE
CALCULATION OF MAXIMUM ALLOWABLE
AIRPORT
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Historical Population 11,173 11,173 11,173 11,173 11,173 11,174 11,188 11,218 11,276 11,357
Historical Employment 9 301 9 765 10253 10 765 11303 11 868 11 882 11915 11977 12 063
20,474 20,938 21,426 21,938 22,476 23,042 23,070 23,134 23,253 23,420
INVENTORY SUMMARY ($000)
Buildings $1,156.5 $1,156.5 $1,156.5 $1,156.5 $1,156.5 $886.0 $886.0 $886.0 $886.0 $886.0
Land $17,206.0 $17,206.0 $17,206.0 $17,206.0 $17,206.0 $17,206.0 $17,206.0 $17,206.0 $17,206.0 $17,206.0
Equipment & Infrastructure $362.4 $362.4 $362.4 $362.4 $362.4 $486.8 $594.0 $594.0 $613.8 $613.8
Runways & Parking Lots $2,963.1 $2,963.1 $2,963.1 $2,963.1 $2,963.1 $2,963.1 $2,963.1 $2,963.1 $2,983.6 $2,983.6
Total ($000) $21,688.1 $21,688.1 $21,688.1 $21,688.1 $21,688.1 $21,541.9 $21,649.1 $21,649.1 $21,689.4 $21,689.4
Average
SERVICE LEVEL ($ /capita & amp) Service
Level
Buildings $56.49 $55.23 $53.98 $52.72 $51.45 $38.45 $38.40 $38.30 $38.10 $37.83 $46.10
Land $840.40 $821.76 $803.04 $784.30 $765.53 $746.72 $745.82 $743.77 $739.95 $734.67 $772.60
Equipment & Infrastructure $17.7 $17.3 $16.9 $16.5 $16.1 $21.1 $25.7 $25.7 $26.4 $26.2 $20.97
Runways & Parking Lots $144.73 $141.52 $138.30 $135.07 $131.84 $128.60 $128.44 $128.09 $128.31 $127.40 $133.23
Total ($ /capita & emp) $1,059.32 $1,035.82 $1,012.23 $988.61 $964.94 $934.90 $938.41 $935.83 $932.76 $926.10 $972.89
MUNICIPALITY OF KINCARDINE
CALCULATION OF MAXIMUM ALLOWABLE
AIRPORT
10 -Year Funding Envelope Calculation Excess Capacity Calculation
10 Year Average Service Level 2006 - 2015 $972.89 Total Value of Inventory in 2015 $21,689,378
Net Population & Employment Growth 2016 - 2025 2,006 Inventory Using Average Service Level $22,785,205
Maximum Allowable Funding Envelope $1,951,755 Excess Capacity $0
Less: Uncommitted Excess Capacity $0 Excess Capacity: Uncommitted
Less: 10% Legislated Reduction $195,176
Discounted Maximum Allowable Funding Envelope $1,756,580
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APPENDIX B.1
TABLE 2
MUNICIPALITY OF KINCARDINE
DEVELOPMENT - RELATED CAPITAL PROGRAM
AIRPORT
Gross Grants/ Net Ineligible Costs Total DC Eligible Costs
Project Description Timing Project Subsidies /Other Municipal Replacement 10% DC Eligible Available 2016- Post
Cost Recoveries Cost & BTE Shares Reduction Costs DC Reserves 2025 2025
1.0 AIRPORT
1.1 Airport Development- Related Projects
1.1.1 $ - $ - $ - $ - $ - $ - $ - $ - $ _
1.1.2 $ - $ - $ - $ - $ - $ - $ - $ - $ _
1.1.3 $ - $ - $ - $ - $ - $ - $ - $ _ $ -
Subtotal Airport Development - Related Projects $ - $ - $ - $ - $ - $ - $ - $ - $ _
TOTAL AIRPORT $ - $ - $ - $ - $ - $ - $ - $ - $ -
Residential Development Charge Calculation
Residential Share of 2016 - 2025 DC Eligible Costs 55% $0 2016 -2025 Net Funding Envelope $1,756,580
10 -Year Growth in Population in New Units 1,263
Unadjusted Development Charge Per Capita $0.00 Reserve Fund Balance
Uncommitted Reserve Funds $0
Non - Residential Development Charge Calculation 2016 Capital Budget Draws j;0
Non - Residential Share of 2016 - 2025 DC Eligible Costs 45% $0 TOTAL $0
10 -Year Growth in Square Metres 77,499
Unadjusted Development Charge Per Square Metre $0.00
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APPENDIX B.1
TABLE 3 - PAGE 1
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
AIRPORT
RESIDENTIAL DEVELOPMENT CHARGE
(in $000)
AIRPORT 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL
OPENING CASH BALANCE $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
2011 -2020 RESIDENTIAL FUNDING REQUIREMENTS
- Library Services: Non Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
- Library Services: Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
NEW RESIDENTIAL DEVELOPMENT
- Population Growth in New Units 134 124 122 118 117 124 125 129 135 135 1,263
REVENUE
- DC Receipts: Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
INTEREST
- Interest on Opening Balance $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
- Interest on In -year Transactions $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
TOTAL REVENUE $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 _ $0.0 $0.0 $0.0
CLOSING CASH BALANCE $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
2016 Adjusted Charge Per Capita $0.00 Allocation of Capital Program
Residential Sector 55.0%
Non - Residential Sector 45.0%
Rates for 2016
Inflation Rate 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
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APPENDIX B.1
TABLE 3 - PAGE 2
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
AIRPORT
NON - RESIDENTIAL DEVELOPMENT CHARGE
(in $000)
AIRPORT 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL
OPENING CASH BALANCE $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
2011 -2020 NON - RESIDENTIAL FUNDING REQUIREMENTS
- Airport: Non Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
- Airport: Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
NEW NON - RESIDENTIAL DEVELOPMENT
- Growth in Square Metres 7,892 7,751 7,755 7,944 7,944 6,078 7,976 7,927 8,116 8,116 77,499
REVENUE
- DC Receipts: Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
INTEREST
- Interest on Opening Balance $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
- Interest on In -year Transactions $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
TOTAL REVENUE $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
CLOSING CASH BALANCE $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
2016 Adjusted Charge Per Square Metre $0.00 Allocation of Capital Program
Residential Sector 55.0%
Non - Residential Sector 45.0%
Rates for 2011
Inflation Rate 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
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APPENDIX B.2
CEMETERY
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APPENDIX B.2
CEMETERY
The Municipality of Kincardine provides Cemetery services through three
municipally run cemeteries located in Port Bruce, Kincardine, and Tiverton.
TABLE 1 2006 -2015 HISTORICAL SERVICE LEVELS
Table 1 displays the Cemetery's ten -year historical inventory for buildings,
structures, land improvements, vehicles, and roads within the cemeteries. The
buildings and other structures have a combined current replacement value of
$525,200. The land associated with the cemeteries totals 44.82 hectares worth $1.58
million. In total, the Municipality operates approximately five vehicles related to the
delivery of cemetery services with a replacement value of $219,600. The internal
roads related to the cemeteries adds an additional $208,200 to the inventory.
The 2015 full replacement value of the inventory of capital assets for Cemeteries is
$2.53 million and the ten -year historical average service level is $216.77 per capita.
The historical service level, multiplied by the ten year forecast net population
growth of 973 persons results in a ten -year maximum allowable funding envelope of
$210,890.
Calculated excess capacity in the amount of $71,610 is deemed uncommitted and as
such is removed from the maximum allowable funding envelope. In addition,
Cemeteries are identified in the DCA as a service that must be reduced by ten per
cent and amounts to $13,930. After these deductions, the resulting net maximum
allowable funding envelope brought forward to the development charges calculation
is reduced to $125,350.
TABLE 2 2016 - 2025 DEVELOPMENT - RELATED CAPITAL PROGRAM &
CALCULATION OF THE UNADJUSTED DEVELOPMENT CHARGE
The Cemetery capital program includes for the recovery of a Tiverton Columbaria
Project in 2016 for $61,500, the Kincardine Cemetery Phase 4 Columbaria Project in
2018 for $100,000 and the expansion of the Kincardine Cemetery relating to the
construction of internal roads and surveys for additional plots in 2020 for a total cost
of $180,000. The total gross cost of the capital program amounts to $341,500, which
is related to increasing the capacity of current cemeteries in the Municipality.
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However, a significant portion of that capacity will be required to accommodate
deaths in the existing population base of the Municipality rather than population
growth. A "benefit to existing" share of the gross cost has therefore been calculated
and has been excluded from the development charge calculation. The death rate of
residents in Kincardine has been considered in the calculation of the benefit to
existing share. The deaths arising out of the population growth amounts to roughly
five per cent, and this is considered to be the development - related share for the
identified cemetery projects.
Of the net municipal costs, approximately $324,430 has been deemed as the benefit
to existing share and is removed from the DC calculation. In accordance with the
DCA, cemeteries are subject to the statutory ten per cent discount and as such is
reduced by $1,710. The discounted development- related net capital cost of $15,370
is carried forward to the development charges calculation.
The 2016 -2025 DC costs eligible for recovery amounts to $15,370 which is then
allocated entirely against future residential development in the Municipality of
Kincardine. This results in an unadjusted development charge of $12.17 per capita.
TABLE 3 CASH FLOW ANALYSIS
After cash flow consideration, the residential calculated charge increases to $13.08
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 Cemetery development
charge:
CEMETERY SUMMARY
10 -year Hist. 2016 - 2025 Unadjusted Adjusted
Service Level Development - Related Capital Program Development Charge Development Charge
per capita Total Net DC Recoverable $ /capita $ /sq.m $ /capita $ /sq.m
$216.77 $341,500 $15,368 $12.17 $0.00 $13.08 $0.00
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APPENDIX B.2
TABLE I - PAGE 1
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
CEMETERY
BUILDINGS # of Square Feet UNIT COST
2006 2007 2008 1 2009 2010 2011 2012 2013 2014 2015 ($Isq.ft.)
Cemetery Workshop Building 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 1,260 $110
Cemetery Chapel 918 918 918 918 918 918 918 918 918 918 $193
Total (sq.ft.) 2,178 2,178 2,178 2,178 2,178 2,178 2,178 2,178 2,178 2,178
Total ($000) $315.8 $315.8 $315.8 I $315.8 $315.8 $315.8 $315.8 $315.8 $315.8 $315.8
Value ($) of Structures
OTHER STRUCTURES
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Columbarias -294 Bruce Ave. $0 $100,850 $100,850 $100,850 $100,850 $100,850 $100,850 $100,850 $209,398 $209,398
Total ($000) $0.0 $100.8 $100.8 $100.8 $100.8 $100.8 $100.8 $100.8 $209.4 $209.4
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APPENDIX B.2
TABLE 1 - PAGE 2
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
CEMETERY
LAND AND IMPROVEMENTS # of Hectares UNIT COST
Cemetery Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /ha)
Port Bruce Cemetery 1.42 1.42 1.42 1.42 1.42 1.42 1.42 1.42 1.42 1.42 $47,300
Kincardine Cemetery 39.34 39.34 39.34 39.34 39.34 39.34 39.34 39.34 39.34 39.34 $32,000
Tiverton Cemetery 4.06 4.06 4.06 4.06 4.06 4.06 4.06 4.06 4.06 4.06 $62,700
Total (ha) 44.82 44.82 44.82 44.82 44.82 44.82 44.82 44.82 44.82 44.82
Total ($000) $1,580.6 $1,580.6 $1,580.6 $1,580.6 $1,580.6 $1,580.6 $1,580.6 $1,580.6 $1,580.6 $1,580.6
VEHICLES # of Vehicles UNIT COST
Vehicle Type 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($/vehicle)
1997 Ford pickup 1 1 1 1 1 - - - - - $31,140
2000 Ford F450- Series Truck 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 $60,110
2002 Lawnmower JDX495 1 1 1 1 - - - - - - $26,040
2005 John Deere X595 Tractor 1 1 1 1 1 1 1 1 1 1 $26,040
1984 MF 245 Tractor 1 1 1 1 1 1 1 1 1 1 $126,240
John Deere 2305 Tractor - - - 1 1 1 1 1 2 2 $9,720
2013 JD 1025R Tractor with 54 "Deck - - - - - - 1 1 $17,800
Total (#) 4.5 4.5 4.5 5.5 4.5 3.5 3.5 3.5 5.5 5.5
Total ($000) $239.5 $239.5 $239.5 $249.2 $223.2 $192.1 $192.1 $192.1 $219.6 $219.6
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APPENDIX B.2
TABLE 1 - PAGE 3
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
CEMETERY
ROADS Total Value of Roads ($)
Cemetery Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Kincardine Cemetery $151,804 $151,804 $151,804 $151,804 $151,804 $151,804 $151,804 $151,804 $151,804 $151,804
Tiverton Cemetery $46,383 $46,383 $46,383 $46,383 $46,383 $46,383 $46,383 $46,383 $46,383 $46,383
Port Bruce Cemetery $0 $0 $0 $0 $0 $0 $0 $0 $10,000 $10,000
Total ($000) $198.2 $198.2 $198.2 $198.2 $198.2 $198.2 $198.2 $198.2 $208.2 $208.2
1
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APPENDIX B.2
TABLE 1 - PAGE 4
MUNICIPALITY OF KINCARDINE
CALCULATION OF SERVICE LEVELS
CEMETERY
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Historical Population 11,173 11,173 11,173 11,173 11,173 11,174 11,188 11,218 11,276 11,357
INVENTORY SUMMARY ($000)
Buildings $315.8 $315.8 $315.8 $315.8 $315.8 $315.8 $315.8 $315.8 $315.8 $315.8
Other Structures $0.0 $100.8 $100.8 $100.8 $100.8 $100.8 $100.8 $100.8 $209.4 $209.4
-
Land $1,580.6 $1,580.6 $1,580.6 $1,580.6 $1,580.6 $1,580.6 $1,580.6 $1,580.6 $1,580.6 $1,580.6
Vehicles $239.5 $239.5 $239.5 $249.2 $223.2 $192.1 $192.1 $192.1 $219.6 $219.6
Roads $198.2 $198.2 $198.2 $198.2 $198.2 $198.2 $198.2 $198.2 $208.2 $208.2
Total ($000) $2,334.1 $2,434.9 $2,434.9 $2,444.7 $2,418.6 $2,387.5 $2,387.5 $2,387.5 $2,533.5 $2,533.5
Average
SERVICE LEVEL ($ /capita) Service
Level
Buildings $28.26 $28.26 $28.26 $28.26 $28.26 $28.26 $28.23 $28.15 $28.00 $27.80 $28.18
Other Structures $0.00 $9.03 $9.03 $9.03 $9.03 $9.03 $9.01 $8.99 $18.57 $18.44 $10.01
Land $141.47 $141.47 $141.47 $141.47 $141.47 $141.45 $141.28 $140.89 $140.17 $139.17 $141.03
Vehicles $21.44 $21.44 $21.44 $22.31 $19.98 $17.19 $17.17 $17.12 $19.47 $19.33 $19.69
Roads $17.74 $17.74 $17.74 $17.74 $17.74 $17.74 $17.72 $17.67 $18.46 $18.33 $17.86
Total ($ /capita) $208.90 $217.93 $217.93 $218.80 $216.47 $213.66 $213.41 $212.82 $224.68 $223.08 $216.77
MUNICIPALITY OF KINCARDINE
CALCULATION OF MAXIMUM ALLOWABLE
CEMETERY
10 -Year Funding Envelope Calculation Excess Capacity Calculation
10 Year Average Service Level 2006 - 2015 $216.77 Total Value of Inventory in 2015 $2,533,546
Net Population Growth 2016 - 2025 973 Inventory Using Average Service Level $2,461,937
Maximum Allowable Funding Envelope $210,887 Excess Capacity $71,609
Less: Uncommitted Excess Capacity $71,609 Excess Capacity: Uncommitted
Less: 10% Legislated Reduction $13,928
Discounted Maximum Allowable Funding Envelope $125,350
HEMSON
79
APPENDIX B.2
TABLE 2- PAGE2
MUNICIPALITY OF KINCARDINE
DEVELOPMENT - RELATED CAPITAL PROGRAM
CEMETERY
Gross Grants/ Net Ineligible Costs Total DC Eligible Costs
Project Description Timing Project Subsidies /Other Municipal Replacement 10% DC Eligible Available 2016- Post
Cost Recoveries Cost & BTE Shares Reduction Costs DC Reserves 2025 2025
2.0 CEMETERY
2.1 Cemetery Projects
2.1.1 Tiverton Columbaria Project - 72 Niches 2016 $ 61,500 $ - $ 61,500 $ 58,425 $ 308 $ 2,768 $ - $ 2,768 $ -
2.1.2 Kincardine Phase 4 Columbaria Project - 72 Niches 2018 $ 100,000 $ - $ 100,000 $ 95,000 $ 500 $ 4,500 $ - $ 4,500 $ -
2.1.3 Kincardine Cemetery Expansion 2020 $ 180,000 $ - $ 180,000 $ 171,000 $ 900 $ 8,100 $ - $ 8,100 $ -
Subtotal Cemetery Projects $ 341,500 $ - $ 341,500 $ 324,425 $ 1,708 $ 15,368 $ - $ 15,368 $ -
TOTAL CEMETERY $ 341,500 $ - $ 341,500 $ 324,425 $ 1,708 $ 15,368 $ - $ 15,368 $ -
Residential Development Charge Calculation
Residential Share of 2016 - 2025 DC Eligible Costs 100% $15,368 2016 -2025 Net Funding Envelope $125,350
1 10 -Year Growth in Population in New Units 1,263
Unadjusted Development Charge Per Capita $12.17 Reserve Fund Balance
Uncommitted Reserve Funds $0
Non - Residential Development Charge Calculation 2016 Capital Budget Draws
Non - Residential Share of 2016 - 2025 DC Eligible Costs 0% $0 TOTAL $0
10 -Year Growth in Square Metres 77,499
Unadjusted Development Charge Per Square Metre $0.00
HEMSON
80
APPENDIX 8.2
TABLE 3
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
CEMETERY
RESIDENTIAL DEVELOPMENT CHARGE
(in $000)
CEMETERY 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL
OPENING CASH BALANCE $0.0 ($1.0) $0.7 ($2.4) ($0.9) ($8.2) ($6.8) ($5.3)
($3.7) ($1.8)
2011 -2020 RESIDENTIAL FUNDING REQUIREMENTS
- Cemetery: Non Inflated , $2.8 $0.0 $4.5 $0.0 $8.1 $0.0 $0.0 $0.0 $0.0 $0.0 $15.4
Cemetery: Inflated $2.8 $0.0 $4.7 $0.0 $8.8 $0.0 $0.0 $0.0 $0.0 $0.0 $16.2
NEW RESIDENTIAL DEVELOPMENT
- Population Growth in New Units 134 124 122 118 117 124 125 129 135 135 1,263
REVENUE
- DC Receipts: Inflated $1.8 $1.7 $1.7 $1.6 $1.7 $1.8 $1.8 $1.9 $2.1 $2.1 $18.2
INTEREST
- InterestonOpeningBalance $0.0 ($0.1) $0.0 ($0.1) ($0.0) ($0.4) ($0.4) ($0.3) ($0.2) ($0.1) ($1.6)
- Interest on In -year Transactions ($0.0) $0.0 ($0.1) $0.0 ($0.2) $0.0 $0.0 $0.0 $0.0 $0.0 ($0.1)
TOTAL REVENUE $1.8 $1.7 $1.6 $1.5 $1.5 $1.4 $1.5 $1.6 $1.9 $2.0 $16.5
CLOSING CASH BALANCE ($1.0) $0.7 ($2.4) ($0.9) ($8.2) ($6.8) ($5.3) ($3.7) ($1.8) $0.3
2016 Adjusted Charge Per Capita $13.08 Allocation of Capital Program
Residential Sector 100.0%
Non - Residential Sector 0.0%
Rates for 2016
Inflation Rate 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
HEMSON
81
APPENDIX B.3
PARK & RECREATION
HEMSON
82
APPENDIX B.3
PARK & RECREATION
The Municipality of Kincardine offers its residents a vast amount of recreational
opportunities. The recently renovated Davidson Centre is the Municipality's main
indoor recreation complex, while Kincardine also offers multiple outdoor sports
fields, playgrounds, and other amenities.
TABLE 1 2006 -2015 HISTORICAL SERVICE LEVELS
The Municipality of Kincardine offers indoor recreation services to its residents
through a number of facilities including the Davidson Centre, Tiverton Sport Centre
Arena and a number of smaller community halls and centres. The total square
footage of these facilities amounts to approximately 252,550 square feet and these
facilities are valued at over $29.93 million. The buildings occupy 5.11 hectares of
land worth $1.79 million. Indoor recreation services also operate two ice resurfacers
for a total replacement cost of $196,000.
The Municipality has roughly 79.00 hectares of parkland located throughout the
community which is valued at $671,500. The Parks and Recreation department is
also responsible for park facilities including baseball and softball diamonds, soccer
pitches, tennis courts, playgrounds, skateboard parks, running tracks, and lawn
bowling pitches. These facilities have a combined total of $5.58 million. Park
shelters and features, washrooms, pavilions, and other buildings associated with
parkland, are also for the benefit of outdoor recreation and these facilities add a
further $4.73 million to the parks and recreation inventory.
The combined value of capital assets for park development and related facilities is
$42.90 million. The ten -year historical service level is $3,562.67 per capita, and this,
multiplied by the ten -year forecast net population growth, results in a maximum
allowable of $3.47 million (973 net population growth X $3,562.67 per capita). A
calculated excess capacity of $2.44 million has been deemed as uncommitted and as
such, is netted off of the maximum allowable funding envelope. Finally, Parks and
Recreation services must be reduced by ten per cent as required under the DCA. The
resulting net maximum allowable funding envelope brought forward to the
development charges calculation is reduced to $925,470.
HEMSON
83
TABLE 2 2016 - 2025 DEVELOPMENT- RELATED CAPITAL PROGRAM AND
THE CALCULATION OF THE UNADJUSTED DEVELOPMENT
CHARGE
The ten -year development- related capital plan for Parks and Recreation amounts to
$4.10 million. The first project related to indoor recreation in the capital program
relates to the construction of additional parking at the Davidson Centre. The project
is anticipated to occur in 2018 and will cost $550,000. The program also provides for
the design and construction of a new Whitney Crawford Community Centre. The
design and needs assessment totals $150,000 and is anticipated to occur in 2018.
Following the design, the construction of the building will begin in 2020 and is
anticipated to cost $3.00 million. The outdoor recreation related projects include a
washroom, picnic shelter and equipment storage in 2019 for a total cost of $250,000.
In addition, a provision for various amenities including trails, parks and land
improvements for $150,000 has also been included. The specific scope and nature of
these various outdoor recreation projects will be informed through the Municipality's
future Parks and Recreation Master Plan.
The total gross cost of the indoor and outdoor recreation projects amount to $4.10
million. An amount of $2.11 million has been identified as grants or subsidies. This
consists of $1.98 million in grants, or 66 per cent of construction costs, from upper
levels of government to help fund the Whitney Crawford Centre. The soccer club
has approached the Municipality and has offered to pay for half of the capital cost
relating to the washroom, picnic shelter and equipment storage. As such, $125,000 is
reduced from the total net municipal costs.
The addition of parking at the Davidson Centre will replace the existing parking and
also expand the number of spaces. To account for the replacement of existing spaces,
a benefit to existing share of $363,000, or 66 per cent, is deemed to be non -DC
eligible and is removed from recoverable costs. Recognizing that the new Whitney
Crawford Community Centre will result in the current space utilized at existing
community centre to be closed, a "replacement" share equivalent to the value of the
current community centre has been netted off the total net municipal cost. In total,
$421,200 is deemed to be a replacement share related to the new Whitney Crawford
Community Centre and is removed from the DC legible costs. All of the projects in
the program are reduced by the legislated ten per cent discount which totals
$121,080. After netting off the project costs that are ineligible for recovery through
development charges, the total DC eligible costs amount to $1.09 million.
HEMSON
84
A portion of this cost, $177,970, will be paid for by existing funds in the Parks and
Recreation DC reserve fund. After this adjustment, $911,750 is considered to be the
2016 -2025 development- related DC eligible costs. This entire amount is allocated to
the residential sector as Parks and Recreation will benefit the future residential
population and is recovered by the forecast of approximately 1,263 persons in new
housing units. This yields an unadjusted charge of $721.89 per capita.
TABLE 3 CASH FLOW ANALYSIS
After cash flow consideration, the residential calculated charge increases to $752.70
per capita.
The following table summarizes the calculation of the Parks and Recreation
development charges.
PARKS AND RECREATION SUMMARY
10 -year Hist. 2016 - 2025 Unadjusted Adjusted
Service Level Development - Related Capital Program Development Charge Development Charge
per capita Total Net DC Recoverable $ /capita $ /sq.m $ /capita $ /sq.m
$3,562.67 $4,100,000 $911,751 $721.89 $0.00 $752.70 $0.00
HEMS ON
85
APPENDIX B.3
TABLE 1 - PAGE 1
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
PARKS AND RECREATION
INDOOR RECREATION
Indoor Recreation Buildings # of Square Feet UNIT COST
Facility Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($/sq. ft.)
Kincardine Davidson Centre Complex 142,000 142,000 142,000 154,000 154,000 197,852 197,852 197,852 197,852 197,852 $100
Tiverton Sports Centre Arena 27,270 27,270 27,270 27,270 27,270 27,270 27,270 27,270 27,270 27,270 $240
Whitney Crawford Community Centre, Tiverton 6,750 6,750 6,750 6,750 6,750 6,750 6,750 6,750 6,750 6,750 $160
BrucedaleCommunityCentre 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 $170
Armow Women's Institute Hall 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 $140
Underwood Community Centre 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 $273
Storage Building @ Whitney Crawford CC 13,125 13,125 13,125 13,125 13,125 13,125 13,125 13,125 13,125 13,125 $60
Total (sq.ft.) 196,695 196,695 196,695 208,695 208,695 252,547 252,547 252,547 252,547 252,547
Total ($000) $24,338.5 $24,338.5 $24,338.5 $25,540.9 $25,540.9 $29,934.6 $29,934.6 $29,934.6 $29,934.6 $29,934.6
Indoor Recreation Land # of Hectares UNIT COST
Facility Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /ha)
Kincardine Davidson Centre Complex 2.63 2.63 2.63 2.63 2.63 2.63 2.63. 2.63 2.63 2.63 $350,000
Tiverton Sports Centre Arena. 1.34 1.34 1.34 1.34 1.34 1.34 1.34 1.34 1.34 1.34 $350,000
Whitney Crawford Community Centre, Tiverton 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 _ $350,000
Brucedale Community Centre 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41 $350,000
Armow Women's Institute Hall 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 $350,000
Underwood Community Centre 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 $350,000
Storage Building @ Whitney Crawford CC 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 0.26 $350,000
Total (ha) 5.11 5.11 5.11 5.11 5.11 5.11 5.11 5.11 5.11 5.11
Total ($000) $1,788.5 $1,788.5 $1,788.5 $1,788.5 $1,788.5 $1,788.5 $1,788.5 $1,788.5 $1,788.5 $1,788.5
Indoor Recreation Vehicles # of Vehicles UNIT COST
Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($/ha)
Ice Resurfacer 2 2 2 2 2 2 2 2 2 2 $98,000
Total (ha) 2.0 2.0 2.0 2.b 2.0 2.0 2.0 2.0 2.0 2.0
Total ($000) $196.0 $196.0 $196.0 $196.0 $196.0 $196.0 $196.0 $196.0 $196.0 $196.0
HEMSON
86
APPENDIX B.3
TABLE 1 - PAGE 2
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
PARKS AND RECREATION
PARKLAND DEVELOPMENT
Park Name # of Hectares UNIT COST
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (5/Ha)
Alps Park 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 $8,500
Armow Park 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 $8,500
Berview Community Park 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 $8,500
Connaught Park 6.91 6.91 6.91 6.91 6.91 6.91 6.91 6.91 6.91 6.91_ $8,500
Bluewater Traile Park 0.84 0.84 0.84 0.84 0.84 0.84 0.84 0.84 0.84 0.84 $8,500
Dunsmoor Park _ 0.89 0.89 0.89 0.89 0.89 0.89 0.89 0.89 0.89 0.89 $8,500
MacPherson Park 2.22 2.22 2.22 2.22 2.22 2.22 2.22 2.22 2.22 2.22 $8,500
Rotary Park 1.26 1.26 1.26 1.26 1.26 1.26 1.26 1.26 1.26 1.26 $8,500
Victoria Park 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81 $8,500
Davidson Centre and Lions Park 20.20 20.20 20.20 20.20 20.20 20.20 20.20 20.20 20.20 20.20 $8,500
Robinson Park 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 $8,500
Blackwell Park 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 $8,500
Helliwell Park 2.63_ 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 _ 2.63 $8,500
Huron Ridge - Park 1 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 0.94 $8,500 _
Huron Ridge - Park 2 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 $8,500
Huron Ridge - Park 3 0.74 0.74 0.74 0.74 0.74 0.74 0.74 0.74 0.74 0.74 $8,500
McIntyre Park 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16 $8,500
Iverhuron Park 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 1.05 $8,500
i
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APPENDIX B.3
TABLE 1 - PAGE 3
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
PARKS AND RECREATION
PARKLAND DEVELOPMENT
Park Name Continued # of Hectares UNIT COST
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /Ha)
Lake Huron Highlands 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 $8,500
Kin Huron Park 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 $8,500
Elgin Market Park 1.31 1.31 1.31 1.31 1.31 1.31 1.31 1.31 1.31 1.31 $8,500
Legion Park 10.93 10.93 10.93 10.93 10.93 10.93 10.93 10.93 10.93 10.93 $8,500
Roadside Park 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 $8,500
Reunion Park 8.19 8.19 8.19 8.19 8.19 8.19 8.19 8.19 8.19 8.19 _ $8,500
Rotary Park 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 $8,500
Wildfang Park 0.84 0.84 0.84 0.84 0.84 0.84 0.84 0.84 0.84 0.84 $8,500
Queen's Lookout 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29 $8,500
Victoria Park 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81 0.81 $8,500
Geddes Park 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 2.62 $8,500
Patterson Park 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 $8,500
Memorial Park 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 $8,500
Tiverton Lions Park 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.65 $8,500
Underwood Park 1.78 1.78 1,78 1.78 1.78 1.78 1.78 1.78 1.78 1.78 $8,500
Total (#) 79.00 79.00 79.00 79.00 79.00 79.00 79.00 _ 79.00 79.00 79.00
Total ($000) $671.5 $671.5 $671.5 $671.5 $671.5 $671.5 $671.5 $671.5 $671.5 $671.5
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APPENDIX B.3
TABLE 1 - PAGE 4
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
PARKS AND RECREATION
PARK FACILITIES
Pitches # of Pitches
UNIT COST
Park Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (5/pitch)
Soccer Pitches
Davidson Centre 3 3 3 3 3 3 3 3 3 3 $233,600
Tiverton Sports Centre 4 4 4 4 4 4 4 4 4 4 $233,600
Legion Park Junior Soccer Pitch - Class A 3 3 3 3 3 3 3 3 3 3_ $136,900
Ward 1 Fields - Senior 1 1 1 1 1 1 1 1 1 1 $103,000
Ward 1 Fields - Junior 3 3 3 3 3 3 3 3 3 3 $136,900
Total( #) 14 14 14 14 14 14 14 14 14 14
Total ($000) $2,559.6 $2,559.6 $2,559.6 $2,559.6 $2,559.6 $2,559.6 $2,559.6 $2,559.6 $2,559.6 $2,559.6
Baseball Diamonds # of Diamonds UNIT COST
Park Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /diamond)
Bervie Park 1 1 1 1 1 1 1 1 1 1 $3,900
Connaught Park - Class A 3 3 3 3 3 3 3 3 3 3 $233,600
lnverhuron Park - Class C 1 1 1 1 1 1 1 1 1 1 $188,000
Huron Ridge Park 1 1 1 1 1 1 1 1 1 1 $3,900
Elgin Market Park 1 1 1 1 1 1 1 1_ 1 1 $3,900
Tiverton Park - Class A 2 2 2 2 2 2 2 2 2 2 $231,200
Legion Park - Class A 1 1 1 1 1 1 1 1 1 1 $192,900
Total ( #) 10 10 10 10 10 10_ 10_ 10 10 _ 10
Total ($000) $1,555.8 $1,555.8 $1,555.8 $1,555.8 $1,555.8 $1,555.8 $1,555.8 $1,555.8 $1,555.8 $1,555.8
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APPENDIX B.3
TABLE 1 - PAGE S
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
PARKS AND RECREATION
PARK FACILITIES
Tennis Courts # of Courts UNIT COST
Park Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /court)
Macperson Park 3 3 3 3 3 3 3 3 3 3 $58,600
Total ( #) 3 3 3 3 3 3 3 3 3 3
Total ($000) $175.8 $175.8 $175.8 $175.8 $175.8 $175.8 $175.8 $175.8 $175.8 $175.8
Playgrounds # of Playgrounds UNIT COST
Park Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($/playground)
Alps Park 1 1 1 1 1 1 1 1 1 1 $16,700
Armow Park 1 1 1 1 1 1 1 1 1_ 1 $12,500
Bervie Community Park 1 1 1 1 1 1 1 1 1 1 $7,400
Connaught Park 1 1 1 1 1 1 1 1 1 1 $25,800
Davidson Centre Complex 1 1 1 1 1 1 1 1 1 1 $58,100
Helliwell Park 1 1 1 1 1 1 1 1 1 1 $12,000
Huron Ridge Park 1 1 1 1 1 1 1 1 1 1 $85,600
Inverhuron Playground 1 1 1 1 1 1 1 1 1 1 $12,500
Kinhuron Park 1 1 1 1 1 1 1 1 1 1 $8,200
Lake Huron Highlands 1 1 1 1 1 1 1 1 1 1 $8,200 .
Macintyre Park 1 1 1 1 1 1 1 1 1 1_ $33,600
Macpherson Park 1 1 1 1 1 1 1 1 1 1 $69,600
Patterson Park 1 1 1 1 1 1 1 1 1 1 $19,700
Rotary Park 1 1 1 1 1 1 1 1 1_ 1 $15,000
Savage Park 1 1 1 1 1 1 1 1 1 1 $15,000
Scots Point Park 1 1 1 1 1 1 1 1 1 1 $11,900
Tiverton Park 1 1 1 1 1 1 1 1 1 1_ $34,600
Willow West Park 1 1 1 1 1 1 1 1 1 1 $28,200
Total ( #) 18 18 18 18 18 18 18 18 18 18
Total ($000) $474.6 $474.6 $474.6 $474.6 $474.6 $474.6 $474.6 $474.6 $474.6 $474.6
HEMSON
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90
APPENDIX B.3
TABLE 1 - PAGE 6
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
PARKS AND RECREATION
PARK FACILITIES
Skateboard Parks # of Parks
UNIT COST
Park Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($/park)
Davidson Centre 1 1 1 1 1 1 1 1 1 1 $95,500
Total ( #) 1 1 1 1 1 1 1 1 1 1
Total ($000) $95.5 $95.5 $95.5 $95.5 $95.5 $95.5 $95.5 $95.5 $95.5 $95.5
Running/ Walking Tracks # of Tracks UNIT COST
Park Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /track)
Davidson Centre Complex 1 1 1 1 1 1 1 1 1 1 $213,000
Walk of Memories 1 1 1 1 1 1 1 1 1 1 $51,000
Total ( #) 2 2 2 2 2 2 2 2 2 2
Total ($000) $264.0 $264.0 $264.0 $264.0 $264.0 $264.0 $264.0 $264.0 $264.0 $264.0
Lawn Bowling # of Greens UNIT COST
Park Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /Green)
MacPherson Park 4 4 4 4 4 4 4 4 4 4 $43,800
Total ( #) 4 4 4 4 4 4 4 4 4 4
Total ($000) $175.2 $175.2 $175.2 $175.2 $175.2 $175.2 $175.2 $175.2 $175.2 $175.2
Splash Pad # of Splahs Pads UNIT COST
Park Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /pad)
Davidson Centre Complex - - - - - - - - - 0.5 $558,600
Total ( #) - - - - - - - - 0.5
Total ($000) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $279.3
Note: Splash pad was opened in July 2015 to the public, therefore the inventory only reflects 50% of the complex in 2015
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91
APPENDIX B.3
TABLE 1 - PAGE 7
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
PARKS AND RECREATION
PARKS BUILDINGS
Outdoor Buildings # of Square Feet UNIT COST
Facility Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /sq. ft.)
Bluewater Trailer Park Office 500 500 500 500 500 500 500 500 500 500 $92
Bluewater Trailer Park Washroom 350 350 350 350 350 350 350 350 350 350_ $146
Connaught Park Grandstand 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 _ $138
Connaught Park Shed /Horse Barn 4,248 4,248 4,248 4,248 4,248 4,248 4,248 4,248 4,248 4,248 $64
Connaught Pavilion - Agricultural Building 5,869 5,869 5,869 5,869 5,869 5,869 5,869 5,869 5,869 5,869_ $79
Connaught Park Washroom & Snack Bar Building 1,000 1,000 1,000 1,000 1,000 1,428 1,428 1,428 1,428 1,428 $225
Connaught House 450 450 450 450 450 450 450 450 450 450 $115
Dunsmoor park washrooms 375 375 375 375 375 375 375 375 375 375 $311
Dunsmoor Park Pavilion - Dance Hall 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 $96
Marina Office /Store 500 500 500 500 500 500 500 500 500 500 $117
Marina Washrooms & Shed 500 500 500 500 500 500 500 500 500 500 $117
Ighthouse 1,554 1,554 1,554 1,554 1,554 1,554 1,554 1,554 1,554 1,554 $408
Macpherson Park Lawn Bowling House 483 483 483 483 483 483 483 483 483 483 $90
Reunion Park Sunset Pavilion on Boardwalk 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 1,125 $47
Reunion Park Boardwalk Gazebo & beach deck 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 $58
Reunion Park Fish Cleaning Building 400 400 400 400 400 400 400 400 400 400 $292
Reunion Park Boardwalk Washroom 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 $157
Reunion Station Washrooms 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 $146
Rotary Park Washrooms 800 800 800 800 800 800 800 800 800 800 $149
Rotary Park picnic shelter 600 600 600 600 600 600 600 600 600 600 $58
Tiverton Ag. Soc. Storage Shed 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 $62
Tiverton Ball Park Refreshment Booth, Washrooms 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 $82
Total (sq.ft.) _ 29,454 40,454 40,454 40,454 40,454 40,882 40,882 40,882 40,882 40,882
Total ($000) 83,577.6 $4,633.6 $4,633.6 $4,633.6 $4,633.6 $4,729.9 $4,729.9 $4,729.9 $4,729.9 $4,729.9
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92
APPENDIX B.3
TABLE 1 - PAGE 8
MUNICIPALITY OF KINCARDINE
CALCULATION OF SERVICE LEVELS
PARKS AND RECREATION
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Historical Population 11,173 11,173 11,173 11,173 11,173 11,174 11,188 11,218 11,276 11,357
INVENTORY SUMMARY ($000)
Indoor Recreation $26,323.0 $26,323.0 $26,323.0 $27,525A $27,525.4 $31,919.1 $31,919.1 $31,919.1 $31,919.1 $31,919.1
Parkland Development $671.5 $671.5 $671.5 $671.5 $671.5 $671.5 $671.5 $671.5 $671.5 $671.5
Park Facilities $5,300.5 $5,300.5 $5,300.5 $5,300.5 $5,300.5 $5,300.5 $5,300.5 $5,300.5 $5,300.5 $5,579.8
Parks Buildings $3,577.6 $4,633.6 $4,633.6 $4,633.6 $4,633.6 $4,729.9 $4,729.9 $4,729.9 $4,729.9 $4,729.9
Total ($000) $35,872.6 $36,928.6 $36,928.6 $38,130.9 $38,130.9 $42,620.9 $42,620.9 $42,620.9 $42,620.9 $42,900.2
SERVICE LEVEL ($ /capita) Average
Service
Level
Indoor Recreation $2,355.95 $2,355.95 $2,355.95 $2,463.56 $2,463.56 $2,856.55 $2,853.10 $2,845.24 $2,830.63 $2,810.43 $2,619.09
Parkland Development $60.10 $60.10 $60.10 $60.10 $60.10 $60.09 $60.02 $59.86 $59.55 $59.12 $59.91
Park Facilities $474.40 $474.40 $474.40 $474.40 $474.40 $474.36 $473.79 $472.48 $470.06 $491.29 $475.40
Parks Buildings $320.2 $414.7 $414.7 $414.7 $414.7 $423.3 $422.8 $421.6 $419.5 $416.5 $408.26
Total ($/capita) $3,210.65 $3,305.17 $3,305.17 $3,412.78 $3,412.78 $3,814.30 $3,809.69 $3,799.20 $3,779.69 $3,777.30 $3,562.67
MUNICIPALITY OF KINCARDINE
CALCULATION OF MAXIMUM ALLOWABLE
PARKS AND RECREATION
10 -Year Funding Envelope Calculation Excess Capacity Calculation
10 Year Average Service Level 2006 - 2015 $3,562.67 Total Value of Inventory in 2015 $42,900,242
Net Population Growth 2016 - 2025 973 Inventory Using Average Service Level $40,462,562
Maximum Allowable Funding Envelope $3,465,978
Excess Capacity $2,437,680
Less: Uncommitted Excess Capacity $2,437,680 Excess Capacity: Uncommitted
Less: 10% Legislated Reduction $102,830
Discounted Maximum Allowable Funding Envelope $925,468
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93
APPENDIX B.3
TABLE 2
MUNICIPALITY OF KINCARDINE
DEVELOPMENT - RELATED CAPITAL PROGRAM
PARKS AND RECREATION
Gross Grants/ Net Ineligible Costs Total DC Eligible Costs
Project Description Timing Project SubsldieslOther Municipal Replacement 10% DC Eligible Available 2016- Post
Cost Recoveries Cost & BTE Shares Reduction Costs DC Reserves 2025 2025
3.0 PARKS AND RECREATION
3.1 Indoor Recreation
3.1.1 Additional Parking at Davidson Centre 2018 $ 550,000 $ - $ 550,000 $ 363,000 $ 18,700 $ 168,300 $ 122,353 $ 45,947 $ -
3.1.2 Whitney Crawford Community Centre Design /Needs Assessment 2018 $ 150,000 $ - $ 150,000 $ 54,000 $ 9,600 $ 86,400 $ - $ 86,400 $ -
3.1.3 Whitney Crawford Community Centre Construction - Replacement and Expansion 2020 $ 3,000,000 $ 1,980,000 $ 1,020,000 $ 367,200 $ 65,280 $ 587,520 $ - $ 587,520 $ -
Subtotal Indoor Recreation $ 3,700,000 $ 1,980,000 $ 1,720,000 $ 784,200 $ 93,580 $ 842,220 $ 122,353 $ 719,867 $ -
3.2 Outdoor Recreation
3.2.1 Washroom /Picnic Shelter /Equipment Storage 2019 $ 250,000 $ 125,000 $ 125,000 $ - $ 12,500 $ 112,500 $ 55,615 $ 56,885 $ -
3.2.2 Provision for additional outdoor recreation amenities (trails, parks, and improv. etc.) Various $ 150,000 $ - $ 150,000 $ - $ 15,000 $ 135,000 $ - $ 135,000 $ -
Subtotal Outdoor Recreation $ 400,000 $ 125,000 $ 275,000 $ - $ 27,500 $ 247,500 $ 55,615 $ 191,885 $ -
TOTAL PARKS AND RECREATION $ 4,100,000 $ 2,105,000 $ 1,995,000 $ 784,200 $ 121,080 $ 1,089,720 $ 177,969 $ 911,751 $ -
Residential Development Charge Calculation
Residential Share of 2016 - 2025 DC Eligible Costs 100% $911,751 2016 -2025 Net Funding Envelope $925,468
10 -Year Growth in Population in New Units 1,263
Unadjusted Development Charge Per Capita $721.89 Reserve Fund Balance
Uncommitted Reserve Funds $177,969
Non - Residential Development Charge Calculation 2016 Capital Budget Draws $D
Non - Residential Share of 2016 - 2025 DC Eligible Costs • 0% $0 TOTAL $177,969
10 -Year Growth in Square Metres 77,499
Unadjusted Development Charge Per Square Metre $0.00
HEMSON
94
APPENDIX B.3
TABLE 3
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
PARKS AND RECREATION
RESIDENTIAL DEVELOPMENT CHARGE
(in $000)
PARKS AND RECREATION 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL
OPENING CASH BALANCE $0.0 $88.9 $174.9 $123.2 $147.5 ($417.9) ($351.2) ($278.2) ($195.8) ($101.5)
2011 -2020 RESIDENTIAL FUNDING REQUIREMENTS
- Parks And Recreation: Non Inflated $13.5 $13.5 $145.8 $70.4 $601.0 $13.5 $13.5 $13.5 $13.5 $13.5 $911.8
- Parks And Recreation: Inflated $13.5 $13.8 $151.7 $74.7 $650.6 $14.9 $15.2 $15.5 $15.8 $16.1 $981.8
NEW RESIDENTIAL DEVELOPMENT
- Population Growth in New Units 134 124 122 118 117 124 125 129 135 135 1,263
REVENUE
- DC Receipts: Inflated $100.9 $95.2 $95.5 $94.3 $95.3 $103.0 $106.0 $111.5 $119.1 $121.4 $1,042.2
INTEREST
- Interest on Opening Balance $0.0 $3.1 $6.1 $4.3 $5.2 ($23.0) ($19.3) ($15.3) ($10.8) ($5.6) ($55.2)
- Interest on In -year Transactions $1.5 $1.4 ($1.5) $0.3 ($15.3) $1.5 $1.6 $1.7 $1.8 $1.8 ($5.1)
TOTAL REVENUE $102.4 $99.7 $100.1 $99.0 $85.2 $81.6 $88.3 $97.9 $110.1 $117.7 $981.9
CLOSING CASH BALANCE $88.9 $174.9 $123.2 $147.5 ($417.9) ($351.2) ($278.2) ($195.8) ($101.5) $0.1
2016 Adjusted Charge Per Capita $752.70 Allocation of Capital Program
Residential Sector 100.0%
Non- Residential Sector 0.0%
Rates for 2016
Inflation Rate 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
HEMSON
95
APPENDIX B.4
PUBLIC WORKS
HEMSON
96
APPENDIX B.4
PUBLIC WORKS
The Kincardine Public Works department is responsible for managing the municipal
infrastructure including water treatment and distribution, wastewater collection and
treatment, roads and sidewalks, including snow removal, operations landfill
operations, recycling and garbage collection, and cemeteries.
TABLE 1 2006 -2015 HISTORICAL SERVICE LEVELS
The ten -year historical inventory of capital assets for Public Works includes 44,585
square feet of building space with a replacement value of $4.47 million. These
buildings occupy approximately 4.1 hectares of land worth $1.43 million. The
municipal -wide fleet consists of 40 vehicles which are valued at $5.32 million and
furniture and equipment adds another $169,800 to the value of the inventory.
The total value of the Public Works capital infrastructure is estimated to be $11.39
million. The ten -year historical average service level is $497.21 per capita and
employee, and multiplied by the ten -year forecast net population and employment
growth, results in a ten -year maximum allowable of $997,470 (2,006 net population
and employment growth X historical service level of $497.21 per capital and
employee). Finally, public works must be reduced by ten per cent as required under
the DCA. The resulting net maximum allowable funding envelope brought forward
to the development charges calculation is reduced to $897,730. No uncommitted
excess capacity has been identified for this service and therefore, is not reduced from
the maximum allowable funding envelope.
TABLE 2 2016 - 2025 DEVELOPMENT - RELATED CAPITAL PROGRAM AND
CALCULATION OF THE UNADJUSTED DEVELOPMENT CHARGES
The ten -year development- related capital plan for Public Works is comprised of the
recovery of two new vehicles and a two bay addition at the existing public works
depot for a total cost of $750,000. A sidewalk plow is anticipated to be acquired in
2018 at cost of $170,000. The second vehicle, a single axel plow, will be acquired the
following year (2019) for $180,000. As a result of these fleet acquisitions, the
Municipality anticipates the need to construct two additional bays to store these
vehicles for a total cost of $400,000.
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97
As the vehicles and bays are not replacing any existing fleet or buildings and are
consisted to be entirely related to development, no benefit to existing or
replacement shares have been identified. In accordance with the DCA the DC
eligible amount must be reduced by the ten per cent legislated reduction, and as
such, $75,000 is removed from the DC calculation. The remaining amount,
$675,000, is eligible for recovery though DCs.
This amount is allocated 55 percent, or $371,250, to the residential sector and 45 per
cent, or $303,750, to the non - residential sector. This yields an unadjusted charge of
$293.94 per capita and $3.92 per square metre.
TABLE 3 CASH FLOW ANALYSIS
After cash flow consideration, the calculated residential charge increases to $315.86
per capita and the non - residential charge is also increases to $4.21 per square metre.
The following table summarizes the calculation of the Public Works development
charge.
PUBLIC WORKS & MUNICIPAL FLEET SUMMARY
10 -year Hist. 2016 - 2025 Unadjusted Adjusted
Service Level Development - Related Capital Program Development Charge Development Charge
per pop & emp Total Net DC Recoverable $ /capita $ /sq.m $ /capita $ /sq.m
$497.21 $750,000 $675,000 $293.94 $3.92 $315.86 $4.21
HEMSON
98
APPENDIX B.4
TABLE 1 - PAGE 1
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
PUBLIC WORKS & MUNICIPAL FLEET
BUILDINGS # of Square Feet UNIT COST
Facility Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($Isq.ft.)
Armow Sand Shed 2,400 2,400 2,400 2,400 2,400 2,400 2400 2,400 2,400 2,400 $46
Tiverton Equipment Garage 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 $67
Tiverton Storage Shed 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 $40
Kincardine 4 Bay Garage and Office 6,742 6,742 6,742 6,742 6,742 6,742 6,742 6,742 6,742 6,742 $144
Ward 1 Sand Dome 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 $77
Armow Garage/Shop/ Office - 6 bay 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 $124
Underwood Garage/equipment depot/office 15,003 15,003 15,003 15,003 15,003 15,003 15,003 15,003 15,003 15,003 $89
Underwood Sand Dome _ 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 $77
Kincardine Salt Shed - - - - - 1,040 1,040 1,040 1,040 1,040
$33
Total ( #) 44,545 44,545 44,545 44,545 44,545 45,585 45,585 45,585 45,585 45,585
Total ($000) $4,437.9 $4,437.9 $4,437.9 $4,437.9 $4,437.9 $4,472.2 $4,472.2 $4,472.2 $4,472.2 $4,472.2
LAND # of Hectares - UNIT COST
Facility Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($/Ha)
Armow Sand Shed 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 $350,000
Tiverton Equipment Garage & Storage Shed 0.17 0.17 0.17 0.17_ 0.17 0.17 0.17 0.17 0.17 0.17 $350,000
Kincardine 4 Bay Garage and Office 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 _ 0.43 $350,000
Ward 1 Sand Dome 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 $350,000
Armow Garage /Shop/ Office - 6 bay 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 $350,000
Underwood Garage /Equipment Depot/Office & Sand Dome 1.13 1.13 1.13 1.13 1.13 1.13 1.13 1.13 1.13 1.13 $350,000
Kincardine Salt Shed 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22 $350,000
Total (#) 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1
Total ($000) $1,428.0 $1,428.0 $1,428.0 $1,428.0 $1,428.0 $1,428.0 $1,428.0 $1,428.0 $1,428.0 $1,428.0
HEMSON
99
APPENDIX B.4
TABLE 1 - PAGE 2
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
PUBLIC WORKS & MUNICIPAL FLEET
FLEET & SMALL EQUIPMENT # of Fleet and Small Equipment UNIT COST
Facility Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /unit)
Bucket Truck 1 1 1 1 1 1 1 1 1 1 $50,000_
Champion Grader 2 2 2 2 2 2 2 2 2 2 $425,000
Dodge Ram 3500 Quad Pickup - 1 1 1 1 1 1 1 1 1 $50,000
Dodge Ram pickup - 1 1 1 1 1 1 1 1 1 $30,000
Dodge Ram 3500 truck - 1 1 1 1 1 1 1 1 1 $30,000
Ford Sander /Plow 1 1 1 1 1 1 1 1 1 1 $198,100
Ford F -150 4X4 Super Cab 2 2 2 2 2 2 2 2 2 2 $30,000
Ford F- Series 1 1 1 1 1 1 1 1 1 1 $28,300
Ford F250 Supercab Pickup 1 1 1 1 1 1 1 1 1 1 $39,300
Ford F450- Series Truck (shared with Cemetery) 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 $50,000
Ford TL90 Tractor loader 1 1 1 1 1 1 1 1 1 1 $103,600
Freightliner Sweeper 1 1 1 1 1 1 1 1 1 1 $200,000
Freightliner MT45 Van 1 1 1 1 1 1 1 1 1 1 $25,440
JD 1025R Tractor with 60" Deck/ZZ Curtis Hard Side Cab - - - - - - - - 1 1 $23,830
JD Dozer 550 1 1 1 1 1 1 1 1 1_ 1 $75,000
John Deere 2009 Articulated Loader 1 1 1 1 1 1 1 1 1 1 $200,000
John Deere 624K Loader - - - - - - - - - 1 $200,410
Kuhn Disk mower 1 1 1 1 1 1 1 1 1 1 $10,000
Kuhn Road Side Mower - - - - - - 1 1 1 1 $15,000
International 7600 Snow Plow 1 1 1 1 1 1 1 1 1 1 $204,350
International 7000 Series - - 1 1 1 1 1 1 1 1 $210,000
International Sander /Plow 1 1 1 1 1 1 1 1 1 1 $198,100
New Holland W130 Loader - 1 1 1 1 1 1 1 1 1 $145,000
New Holland TS115A 4 WD Tractor with TRB Mount Kit 1 1 1 1 1 1 1 1 1 1 $100,000
One Ton Ford Dump Truck 1 1 1 1 1 1 1 1 1 1 $140,000
One Ton Ford F350 Dum • Truck (Ward 2) 1 1 1 1 1 1 1 1 1 1 $140,000
Single Axle Plow /Sander Truck (Sterling L8513) 2 2 2 2 2 2 2 2 2 2 I $158,550
Sterling Plow /Sander DT diesel LT9513 2 2 2 2 2 2 2 2 2 2 $195,200_
Sterling Tandem Plow Sander - Model LT9513 1 1 1 1 1 1 1 1 1 1 $203,450
Trackless _ 1 1 1 1 1 1 1 1 1 1 $150,000
Trackless Sidewalk Plow MT5 1 1 1 1 1 1 1 1 1 1 $117,390
Trackless with Flail Mower 1 I 1 1 1 1 1 1 1 1 1 $126,790
Western Star 2 2 2 2 2 2 2 2 2 2 $205,610
Volvo Sander /Plow 1 1 1 1 1 1 1 1 1 1 $198,100
Total (#) 32 36 37 37 37 37 38 38 39 40
Total ($000) $4,611.6 $4,866.6 $5,076.6 $5,076.6 $5,076.6 $5,076.6 $5,091.6 $5,091.6 $5,115.5 $5,315.9
HEMSON
100
APPENDIX B.4
TABLE 1 - PAGE 3
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
PUBLIC WORKS & MUNICIPAL FLEET
FURNITURE & EQUIPMENT Total Value of Furniture & Equipment ($)
Facility Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Appliances $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
Communication Equipment $27,262 $27,262 $27,262 $27,262 $27,262 $27,262 $27,262 $27,262 $27,262 $27,262
Office Furniture $19,282 $19,282 $19,282 $19,282 $19,282 $19,282 $19,282 $19,282 $19,282 $19,282
Speciality Equipment $72,828 $72,828 $72,828 $72,828 $72,828 $72,828 $72,828 $72,828 $72,828 $72,828
Hoist $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000
GPS Units $0 $0 $0 $0 $0 $6,560 $17,750 $20,460 $20,460 $20,460
Total ($000) $149.4 $149.4 $149.4 $149.4 $149.4 $155.9 $167.1 $169.8 $169.8 $169.8
HEMSON
101
APPENDIX B.4
TABLE 1 - PAGE 4
MUNICIPALITY OF KINCARDINE
CALCULATION OF SERVICE LEVELS
PUBLIC WORKS & MUNICIPAL FLEET
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Historical Population 11,173 11,173 11,173 11,173 11,173 11,174 11,188 11,218 11,276 11,357
Historical Employment 9 301 9765 10253 10765 11303 11 868 11 882 11915 11977 12 063
20,474 20,938 21,426 21,938 22,476 23,042 23,070 23,134 23,253 23,420
INVENTORY SUMMARY ($000)
Buildings $4,437.9 $4,437.9 $4,437.9 $4,437.9 $4,437.9 $4,472.2 $4,472.2 $4,472.2 $4,472.2 $4,472.2
Land $1,428.0 $1,428.0 $1,428.0 $1,428.0 $1,428.0 $1,428.0 $1,428.0 $1,428.0 $1,428.0 $1,428.0
Fleet & Small Equipment $4,611.6 $4,866.6 $5,076.6 $5,076.6 $5,076.6 $5,076.6 $5,091.6 $5,091.6 $5,115.5 $5,315.9
Fixtures, Furniture & Equipment $149.4 $149.4 $149.4 $149.4 $149.4 $155.9 $167.1 $169.8 $169.8 $169.8
Total ($000) $10,626.9 $10,881.9 $11,091.9 $11,091.9 $11,091.9 $11,132.8 $11,159.0 $11,161.7 $11,185.5 $11,385.9
Average
SERVICE LEVEL ($ /pop & emp) Service
Level
Buildings $216.76 $211.96 $207.13 $202.29 $197.45 $194.09 $193.86 $193.32 $192.33 $190.96 $200.01
Land $69.75 $68.20 $66.65 $65.09 $63.53 $61.97 $61.90 $61.73 $61.41 $60.97 $64.12
Fleet & Small Equipment $225.2 $232.4 $236.9 $231.4 $225.9 $220.3 $220.7 $220.1 $220.0 $227.0 $226.00
Fixtures, Furniture & Equipment $7.30 $7.13 $6.97 $6.81 $6.65 $6.77 $7.24 $7.34 $7.30 $7.25 $7.08
Total ($ /pop & emp) $519.06 $519.72 $517.69 $505.60 $493.50 $483.15 $483.70 $482.49 $481.04 $486.16 $497.21
MUNICIPALITY OF KINCARDINE
CALCULATION OF MAXIMUM ALLOWABLE
PUBLIC WORKS & MUNICIPAL FLEET
10 -Year Funding Envelope Calculation Excess Capacity Calculation
10 Year Average Service Level 2006 - 2015 $497.21 Total Value of Inventory in 2015 $11,385,947
Net Population & Employment Growth 2016 - 2025 2,006 Inventory Using Average Service Level
rY 9 9 $11,644,720
Maximum Allowable Funding Envelope $997,474 Excess Capacity $0
Less: Uncommitted Excess Capacity $0 Excess Capacity: Uncommitted
P ty�
Less: 10% Legislated Reduction $99,747
Discounted Maximum Allowable Funding Envelope $897,726
HEMSON
102
APPENDIX 8.4
TABLE 2
MUNICIPALITY OF KINCARDINE
DEVELOPMENT - RELATED CAPITAL PROGRAM
PUBLIC WORKS & MUNICIPAL FLEET
Gross Grants/ Net Ineligible Costs Total DC Eligible Costs
Project Description Timing Project Subsidies /Other Municipal Replacement 10% DC Eligible Available 2016- Post
Cost Recoveries Cost & BTE Shares Reduction Costs DC Reserves 2025 2025
4.0 PUBLIC WORKS & MUNICIPAL FLEET
4.1 Vehicles and Equipment
4.1.1 Sidewalk Plow 2018 $ 170,000 $ - $ 170,000 $ - $ 17,000 $ 153,000 $ - $ 153,000 $ -
4.1.2 Single Axel Plow 2019 $ 180,000 $ - $ 180,000 $ - $ 18,000 $ 162,000 $ - $ 162,000 $ -
4.1.3 2 Bay Addition 2019 $ 400,000 $ - $ 400,000 $ - $ 40,000 $ 360,000 $ - $ 360,000 $ -
Subtotal Vehicles and Equipment $ 750,000 $ - $ 750,000 $ - $ 75,000 $ 675,000 $ - $ 675,000 $ -
TOTAL PUBLIC WORKS & MUNICIPAL FLEET $ 750,000 $ - $ 750,000 $ - $ 75,000 $ 675,000 $ - $ 675,000 $ ' -
Residential Development Charge Calculation
Residential Share of 2016 - 2025 DC Eligible Costs 55% $371,250 2016 -2025 Net Funding Envelope $897,726
10 -Year Growth in Population in New Units 1,263
Unadjusted Development Charge Per Capita $293.94 Reserve Fund Balance
Uncommitted Reserve Funds $0
Non - Residential Development Charge Calculation 2016 Capital Budget Draws
Non - Residential Share of 2016 - 2025 DC Eligible Costs 45% $303,750 TOTAL 80
10 -Year Growth in Square Metres 77,499
Unadjusted Development Charge Per Square Metre $3.92
HEMSON
103
APPENDIX B.4
TABLE 3 - PAGE 1
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
PUBLIC WORKS & MUNICIPAL FLEET
RESIDENTIAL DEVELOPMENT CHARGE
(in $000)
PUBLIC WORKS & MUNICIPAL FLEET 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL
OPENING CASH BALANCE $0.00 $43.04 $85.14 $39.37 ($231.61) ($203.65) ($170.90) ($135.02) ($94.83) ($49.17)
2011 -2020 RESIDENTIAL FUNDING REQUIREMENTS
- Public Works & Municipal Fleet: Non Inflated $0.0 $0.0 $84.2 $287.1 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $371.3
- Public Works & Municipal Fleet: Inflated $0.0 $0.0 $87.5 $304.7 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $392.2
NEW RESIDENTIAL DEVELOPMENT
- Population Growth in New Units 134 124 122 118 117 124 125 129 135 135 1,263
REVENUE
- DC Receipts: Inflated $42.3 $39.9 $40.1 $39.6 $40.0 $43.2 $44.5 $46.8 $50.0 $51.0 $437.4
INTEREST
- Interest on Opening Balance $0.0 $1.5 $3.0 $1.4 ($12.7) ($11.2) ($9.4) ($7.4) ($5.2) ($2.7) ($42.8)
- Interest on In -year Transactions $0.7 $0.7 ($1.3) ($7.3) $0.7 $0.8 $0.8 $0.8 $0.9 $0.9 ($2.3)
TOTAL REVENUE $43.0 $42.1 $41.8 $33.7 $28.0 $32.8 $35.9 $40.2 $45.7 $49.2 $392.2
CLOSING CASH BALANCE $43.0 $85.1 $39.4 ($231.6) ($203.7) ($170.9) ($135.0) ($94.8) ($49.2) $0.0
2016 Adjusted Charge Per Capita $315.86 Allocation of Capital Program
Residential Sector 55.0%
Non - Residential Sector 45.0%
Rates for 2016
Inflation Rate: 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
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APPENDIX 8.4
TABLE 3 • PAGE 2
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
PUBLIC WORKS & MUNICIPAL FLEET
NON- RESIDENTIAL DEVELOPMENT CHARGE
(in $000)
PUBLIC WORKS & MUNICIPAL FLEET 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL
OPENING CASH BALANCE $0.00 $33.78 $68.85 $32.59 ($185.93) ($159.32) ($139.29) ($108.49) ($75.48) ($38.93)
2011 -2020 NON - RESIDENTIAL FUNDING REQUIREMENTS
- Public Works & Municipal Fleet: Non Inflated $0.0 $0.0 $68.9 $234.9 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $303.8
- Public Works & Municipal Fleet: Inflated $0.0 $0.0 $71.6 $249.3 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $320.9
NON - RESIDENTIAL SPACE GROWTH
- Growth in Square Metres 7,892 7,751 7,755 7,944 7,944 6,078 7,976 7,927 8,116 8,116 77,499
REVENUE
- DC Receipts: Inflated $33.2 $33.3 $34.0 $35.5 $36.2 $28.3 $37.8 $38.3 $40.0 $40.8 $357.4
INTEREST
- Interest on Opening Balance $0.0 $1.2 $2.4 $1.1 ($10.2) ($8.8) ($7.7) ($6.0) ($4.2) ($2.1) ($34.2)
- Interest on In -year Transactions $0.6 $0.6 ($1.0) ($5.9) $0.6 $0.5 $0.7 $0.7 $0.7 $0.7
TOTAL REVENUE $33.8 $35.1 $35.4 $30.8 $26.6 $20.0 $30.8 $33.0 $36.5 $39.4 $321.3
CLOSING CASH BALANCE $33.8 $68.8 $32.6 ($185.9) ($159.3) ($139.3) ($108.5) ($75.5) ($38.9) $0.4
2016 Adjusted Charge Per Square Metre $4.21 Allocation of Capital Program
Residential Sector 55.0%
Non - Residential Sector 45.0%
Rates for 2011
Inflation Rate 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
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APPENDIX B.5
FIRE PROTECTION
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106
APPENDIX B.5
FIRE PROTECTION
The Municipality of Kincardine provides fire protection through two stations located
in Tiverton and Kincardine. The department is responsible for a number of fire and
emergency management services including emergency management and fire
prevention. Fire Services is a new service being considered as part of the
Municipality's 2016 Development Charges Background Study.
TABLE 1 2006 -2015 HISTORICAL SERVICE LEVELS
The Fire Services inventory of capital assets includes two fire stations for a combined
area of 14,200 square feet, valued at approximately $2.13 million. Land related to the
Fire Services buildings amounts to roughly 7.92 hectares which is valued at $2.77
million. The 11 vehicles associated with the fire stations in the Municipality have a
replacement value of $3.29 million. Personal firefighting equipment for 55 full and
part -time firefighters adds an additional $715,000 to the inventory. Finally, the
furniture and equipment associated with the two stations adds another $142,000.
The current value of the capital infrastructure including building, land, vehicles, fire
fighter equipment, and furniture and equipment is approximately $9.05 million and
provides the Municipality with a ten -year average historical service level of $406.43
per capita and employee.
The calculated maximum allowable funding envelope is $815,360 (2,000 net
population and employment growth X historical service level of $406.43). No excess
capacity is identified for this service and, in accordance with the DCA, there is no
legislated reduction. As such, the full maximum allowable funding envelope of
$815,360 is brought forward to the development charges calculation.
TABLE 2 2016 - 2025 DEVELOPMENT - RELATED CAPITAL PROGRAM &
CALCULATION OF THE UNADJUSTED DEVELOPMENT CHARGE
The 2016 to 2025 development- related capital program includes for one capital
project relating to the acquisition of a 105 -ft Aerial Truck in 2022 for $1.10 million. -
No grants, subsidies or other recoveries have been identified for this service. The
acquisition of the 105 -ft Aerial is intended to replace the Municipality's existing
HEMSON
107
75 -ft Aerial Vehicle but will also provide additional capacity to service growth and
new higher density dwelling units. As such, replacement share of 60 per cent, or
$660,000, of the total cost is considered to be ineligible for recovery through
development charges.
The remaining $440,400 is related to development occurring between 2016 and
2025 and, given that Fire Services are exempt from the ten per cent reduction of
capital costs imposed by the DCA, the full amount is included in the present
calculation.
The development- related cost is allocated 55 per cent, or $242,000, against new
residential development, and 45 per cent, or $198,000, against non - residential
development. The allocation between residential and non- residential development is
based on shares of forecasted population and employment growth. This yields an
unadjusted development charge of $191.61 per capita and $2.55 per square metre of
non - residential gross floor area.
TABLE 3 CASH FLOW ANALYSIS
After cash flow consideration, the calculated residential charge moderately decreases
to $191.30 per capita and the non - residential charge remains at $2.55 per square
metre.
The following table summarizes the calculation of the Fire Services development
charge.
FIRE SERVICES SUMMARY
10 -year Hist. 2016 - 2025 Unadjusted Adjusted
Service Level Development - Related Capital Program Development Charge Development Charge
per pop & emp Total Net DC Recoverable $ /capita $ /sq.m $ /capita $ /sq.m
$406.43 $1,100,000 $440,000 $191.61 $2.55 $191.30 $2.55
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•
108
APPENDIX B.5
TABLE 1 - PAGE 1
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
FIRE PROTECTION
BUILDINGS # of Square Feet UNIT COST
Station Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($Isq.ft.)
Kincardine Fire Station (127 Mahood - Johnston Dr) 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 $150
Tiverton Fire Station (14 McClaren, Tiverton) 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200 $150
Total (sq.ft.) 14,200 14,200 14,200 14,200 14,200 14,200 14,200 14,200 14,200 14,200
Total ($000) $2,130.0 $2,130.0 $2,130.0 $2,130.0 $2,130.0 $2,130.0 $2,130.0 $2,130.0 $2,130.0 $2,130.0
LAND # of Hectares UNIT COST
Station Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($/ha)
Kincardine Fire Station (127 Mahood-Johnston Dr) 7.32 7.32 7.32 7.32 7.32 7.32 7.32 7.32 7.32 7.32 $350,000
Tiverton Fire Station (14 McClaren, Tiverton) 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 $350,000
Total (ha) 7.92 7.92 7.92 7.92 7.92 7.92 7.92 7.92 7.92 7.92
Total ($000) $2,772.0 $2,772.0 $2,772.0 $2,772.0 $2,772.0 $2,772.0 $2,772.0 $2,772.0 $2,772.0 $2,772.0
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109
APPENDIX B.5
TABLE 1 - PAGE 2
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
FIRE PROTECTION
VEHICLES # of Vehicles UNIT COST
Vehicle Type 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /vehicle)
2015 International Rescue (12 -6) - - - - - - - - - 1 $385,000
1982 GMC Rescue Van (12 -6) 1 1 1 1 1 1 1 1 1 - $385,000
2014 Chevrolet Pickup (Car 3) - - - - - - - - 1 1 $55,000
1995 Chevrolet Astro Staff Van 1 1 1 1 1 1 1 1 - - $55,000
2013 Spartan Pumper (11 -1) - - - - - - 1 1 1 $550,000
1988 GMC Fire Pumper Truck (11 -1) 1 1 1 1 1 1 1 - - - $550,000
2012 Spartan Pumper (12 -1) - - - - - - 1 1 1 1 $550,000
1979 Thibeault Pumper (12 -1) 1 1 1 1 1 1 $550,000
2009 International Tanker (11-4) - - - 1 1 1 1 1 1 1 $220,000
1994 Ford F800 Tanker (12-4) 1 1 1 - - - - - - - $220,000
2003 Ford CAFS Pumper (11 -2) 1 1 1 1 1 1 1 1 1 1 $272,800
2000 International Rescue (11 -6) 1 1 1 1 1 1 1 1 1 1 $220,000
2000 [WE Aerial (75) (12 -8) 1 1 1 1 1 1 1 1 1 1 $660,000
1995 International Tanker (12-4) 1 1 1 1 1 1 1 1 1 1 $176,000
1995 Dodge Pick -up (Car 1) 1 1 1 1 1 1 1 1 1 1 $27,500
1988 Hub Pumper (12 -2) 1 1 1 1 1 1 1 1 1 1 $176,000
Total( #) 11 11 11 11 11 11 11 11 11 11
Total ($000) $3,292.3 $3,292.3 $3,292.3 $3,292.3 $3,292.3 $3,292.3 $3,292.3 $3,292.3 $3,292.3 $3,292.3
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APPENDIX B.5
TABLE 1 - PAGE 3
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
FIRE PROTECTION
FIRE FIGHTER EQUIPMENT # of Pieces of Equipment UNIT COST
Description 2006 2007 2006 2009 2010 2011 2012 2013 2014 2015 ($lunit)
Fire Fighters
Full & Part-Time Fire Fighters 55 55 55 55 55 55 55 55 55 55 $13,000
Total (#) 55 55 55 55 55 55 55 55 55 55
Total($000) $715.0 $715.0 $715.0 $715.0 $715.0 $715.0 $715.0 $715.0 $715.0 $715.0
FURNITURE & EQUIPMENT Total Value of Furniture & Equipment ($)
Station Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Kincardine Fire Station (127 Mahood - Johnston Dr) $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000
Tiverton Fire Station (14 McClaren, Tiverton) $52,000 552,000 $52,000 $52,000 552,000 552,000 $52,000 $52,000 $52,000 $52,000
Total ($000) $142.0 $142.0 $142.0 $142.0 $142.0 $142.0 $142.0 $142.0 $142.0 $142.0
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111
APPENDIX B.5
TABLE 1 - PAGE 4
MUNICIPALITY OF KINCARDINE
CALCULATION OF SERVICE LEVELS
FIRE PROTECTION
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Historic Population 11,173 11,173 11,173 11,173 11,173 11,174 11,188 11,218 11,276 11,357
Historic Employment 9 301 9765 10.253 10.765 11.303 11.868 11.882 11.915 11.977 12.063
Total Historic Population & Employment 20,474 20,938 21,426 21,938 22,476 23,042 23,070 23,134 23,253 23,420
INVENTORY SUMMARY ($000)
Buildings $2,130.0 $2,130.0 $2,130.0 $2,130.0 $2,130.0 $2,130.0 $2,130.0 $2,130.0 $2,130.0 $2,130.0
Land $2,772.0 $2,772.0 $2,772.0 $2,772.0 $2,772.0 $2,772.0 $2,772.0 $2,772.0 $2,772.0 $2,772.0
Furniture & Equipment $142.0 $142.0 $142.0 $142.0 $142.0 $142.0 $142.0 $142.0 $142.0 $142.0
Fire Fighter Equipment $715.0 $715.0 $715.0 $715.0 $715.0 $715.0 $715.0 $715.0 $715.0 $715.0
Vehicles $3,292.3 $3,292.3 $3,292.3 $3,292.3 $3,292.3 $3,292.3 $3,292.3 $3,292.3 $3,292.3 $3,292.3
Total ($000) $9,051.3 $9,051.3 $9,051.3 $9,051.3 $9,051.3 $9,051.3 $9,051.3 89,051.3 $9,051.3 $9,051.3
Average
SERVICE LEVEL ($ /pop & emp) Service
Level
Buildings $104.04 $101.73 $99.41 $97.09 $94.77 $92.44 $92.33 $92.07 $91.60 $90.95 $95.64
Land $135.39 $132.39 $129.38 $126.36 $123.33 $120.30 $120.16 $119.83 $119.21 $118.36 8124.47
Furniture & Equipment $6.94 $6.78 $6.63 $6.47 $6.32 $6.16 $6.16 $6.14 $6.11 $6.06 $6.38
Fire Fighter Equipment $34.92 $34.15 $33.37 $32.59 $31.81 $31.03 $30.99 $30.91 $30.75 $30.53 $32.11
Vehicles $160.81 $157.24 $153.66 $150.07 $146.48 $142.88 $142.71 $142.32 $141.59 $140.58 $147.83
Total ($/pop & emp) $442.10 $432.29 $422.44 $412.59 $402.71 $392.82 $392.34 $391.26 $389.25 $386.48 $406.43
MUNICIPALITY OF KINCARDINE
CALCULATION OF MAXIMUM ALLOWABLE
FIRE PROTECTION
10-Year Funding Envelope Calculation Excess Capacity Calculation
10 Year Average Service Level 2006 - 2015 $406.43 Total Value of Inventory n 2015
ry � $9,051,300
Net Population & Employment Growth 2016 - 2025 2,006 Inventory Using Average Service Level $9,518,641
Maximum Allowable Funding Envelope $815,356 Excess Capacity $0
Less: Uncommitted Excess Capacity $0 Excess Capacity: Uncommitted
Less: 10% Legislated Reduction $0
Maximum Allowable Funding Envelope $815,356
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112
APPENDIX B.5
TABLE 2
MUNICIPALITY OF KINCARDINE
DEVELOPMENT - RELATED CAPITAL PROGRAM
FIRE SERVICES
Gross Grants/ Net Ineligible Costs Total DC Eligible Costs
Project Description Timing Project Subsidies /Other Municipal Replacement 0% DC Eligible Available 2016- Post
Cost Recoveries Cost & BTE Shares Reduction Costs DC Reserves 2025 2025
5.0 FIRE SERVICES
5.1 Vehicles and Equipment
5.1.1 Aerial Truck (105 ft) 2022 $ 1,100,000 $ - $ 1,100,000 $ 660,000 $ - $ 440,000 $ - $ 440,000 $ -
Subtotal Vehicles and Equipment $ 1,100,000 $ - $ 1,100,000 $ 660,000 $ - $ 440,000 $ - $ 440,000 $
TOTAL FIRE SERVICES $ 1,100,000 $ - $ 1,100,000 $ 660,000 $ - $ 440,000 $ • $ 440,000 $ -
Residential Development Charge Calculation
Residential Share of 2016 - 2025 DC Eligible Costs 55% $242,000 2016 -2025 Net Funding Envelope $815,356
10 -Year Growth in Population in New Units 1,263
Unadjusted Development Charge Per Capita $191.61 Reserve Fund Balance
Uncommitted Reserve Funds $0
Non - Residential Development Charge Calculation 2016 Capital Budget Draws 60
Non- Residential Share of 2016 - 2025 DC Eligible Costs 45% $198,000 TOTAL $0
10 -Year Growth in Square Metres 77,499
Unadjusted Development Charge Per Square Metre $2.55
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APPENDIX B.5
TABLE 3 - PAGE 1
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
FIRE SERVICES
RESIDENTIAL DEVELOPMENT CHARGE
(in $000)
FIRE SERVICES 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL
OPENING CASH BALANCE $0.00 $26.05 $51.58 $78.11 $105.27 $133.58 $164.91 ($81.70) ($57.40) ($29.73)
2011 -2020 RESIDENTIAL FUNDING REQUIREMENTS
- Fire Services: Non Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $242.0 $0.0 $0.0 $0.0 $242.0
- Fire Services: Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $272.5 $0.0 $0.0 $0.0 $272.5
NEW RESIDENTIAL DEVELOPMENT
- Population Growth in New Units 134 124 122 118 117 124 125 129 135 135 1,263
REVENUE
- DC Receipts: Inflated $25.6 $24.2 $24.3 $24.0 $24.2 $26.2 $26.9 $28.3 $30.3 $30.9 $264.9
INTEREST
- Interest on Opening Balance $0.0 $0.9 $1.8 $2.7 $3.7 $4.7 $5.8 ($4.5) ($3.2) ($1.6) $10.3
- Interest on In -year Transactions $0.4 $0.4 $0.4 $0.4 $0.4 $0.5 ($6.8) $0.5 $0.5 $0.5 ($2.6)
TOTAL REVENUE $26.0 $25.5 $26.5 $27.2 $28.3 $31.3 $25.9 $24.3 $27.7 $29.8 $272.6
CLOSING CASH BALANCE $26.0 $51.6 $78.1 $105.3 $133.6 $164.9
($81.7) ($57.4) ($29.7) $0.1
2016 Adjusted Charge Per Capita $191.30 Allocation of Capital Program
Residential Sector 55.0%
Non - Residential Sector 45.0%
Rates for 2016
Inflation Rate: 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
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114
APPENDIX B.5
TABLE 3 - PAGE 2
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
FIRE SERVICES
NON - RESIDENTIAL DEVELOPMENT CHARGE
(in $000)
FIRE SERVICES 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL
OPENING CASH BALANCE $0.00 $20.45 $41.72 $64.14 $88.26 $113.64 $135.01 ($65.84) ($45.86) ($23.76)
2011 -2020 NON - RESIDENTIAL FUNDING REQUIREMENTS
- Fire Services: Non Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $198.0 $0.0 $0.0 $0.0 $198.0
- Fire Services: Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $223.0 $0.0 $0.0 $0.0 $223.0
NON - RESIDENTIAL SPACE GROWTH
- Growth in Square Metres 7,892 7,751 7,755 7,944 7,944 6,078 7,976 7,927 8,116 8,116 77,499
REVENUE
- DC Receipts: Inflated $20.1 $20.2 $20.6 $21.5 $21.9 $17.1 $22.9 $23.2 $24.2 $24.7 $216.4
INTEREST
- Interest on Opening Balance $0.0 $0.7 $1.5 $2.2 $3.1 $4.0 $4.7 ($3.6) ($2.5) ($1.3) $8.8
- Interest on In -year Transactions $0.4 $0.4 $0.4 $0.4 $0.4 $0.3 ($5.5) $0.4 $0.4 $0.4 ($2.1)
TOTAL REVENUE $20.5 $21.3 $22.4 $24.1 $25.4 $21.4 $22.1 $20.0 $22.1 $23.8 $223.0
CLOSING CASH BALANCE $20.5 $41.7 $64.1 $88.3 $113.6 $135.0 ($65.8) ($45.9) ($23.8) $0.1
2016 Adjusted Charge Per Square Metre $2.55 Allocation of Capital Program
Residential Sector 55.0%
Non - Residential Sector 45.0%
Rates for 2011
Inflation Rate 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
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115
APPENDIX B.6
WASTE MANAGEMENT SERVICES
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116
APPENDIX B.6
WASTE MANAGEMENT SERVICES
The Municipality of Kincardine provides Waste Management Services for its
residents through a contract with Bruce Area Solid Waste Recycle (BASWR). The
organization services approximately 87 per cent of Bruce County and provides for
recycling and waste collection. The Municipality maintains a Waste Management
Centre and a landfill site in Ward 3.
As of January 1, 2016, the Development Charges Act permits the inclusion of capital
costs associated with all waste management operations with the exception of
incineration and landfill activities. These shares of facilities, land, vehicles and
equipment have been removed from the development charges calculation.
TABLE 1 2006 -2015 HISTORICAL SERVICE LEVELS
The Municipality of Kincardine provides a variety of waste - related services at the
processing sites, including diversion, landfill, and processing. As landfills are
ineligible under the DCA, shares have been removed from the identified capital
assets to account for the portion of each item in the inventory that relates to landfill
operations. These shares were reviewed and determined in consultation with
Municipal staff.
The total square footage the Municipality's existing weight scale and reuse buildings
that relate to the eligible operations of waste management services totals $310,900 in
2015. The land at all sites related to the eligible portions of the service provision
total 0.08 hectares, valued at $27,700.
Of the vehicles used to provide Waste Management Services in the Municipality, 6.8
represent the share of vehicles related to the eligible operations of diversion,
collection and processing. This share is valued at $1.72 million. Finally, the eligible
equipment total adds an additional $9,200 to the inventory.
The total value of the inventory of capital assets for Waste Management Services in
2015 was $2.06 million, resulting in a ten -year historical average service level of
$174.28 per capita. The historical service level, multiplied by the ten -year net
population growth, results in a ten -year maximum allowable funding envelope of
$169,550 (970 net population growth X historical average service level of $174.28).
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117
Excess capacity in the amount of $80,820 has been calculated and is deemed
uncommitted and removed from the calculated funding envelope. The ten per cent
statutory reduction totals $8,870 and must be removed from the calculation. As
such, the maximum allowable funding envelope brought forward to the development
charges calculation is reduced to $79,860.
TABLE 2 2016 - 2025 DEVELOPMENT - RELATED CAPITAL PROGRAM &
CALCULATION OF THE "UNADJUSTED" DEVELOPMENT CHARGES
The ten -year development- related capital plan for Waste Management Services
includes a provision for the expansion and improvements of internal driveways and
receiving areas for a total cost of $250,000 in 2018. No grant, subsidies or other
recoveries are identified an as such, the total is carried forward to the net municipal
costs.
Recognizing that the existing residents of the Municipality currently benefit from
Waste Management Services, a benefit to existing share based on anticipated
population growth over the existing base was calculated. As such, approximately
$221,160 has been identified as the benefit to existing shares and is removed from
the calculation. The ten per cent deduction required by legislation total $2,880,
which reduces the DC eligible costs further to $25,960. As this is a new service
proposed to be introduced as part of the 2016 DC update, there are no reserve funds
available to fund a portion of the DC eligible costs.
The total 2016 -2025 development- related cost of $25,960 is allocated entirely to the
residential sector and yields an unadjusted development charges of $20.55 per capita.
TABLE 3 CASH FLOW ANALYSIS
After cash flow and reserve fund considerations, the residential calculated charge
increases to $22.70 per capita.
The following table summarizes the calculation of the Waste Management Services
development charge:
WASTE MANAGEMENT SUMMARY
10 -year Hist. 2016 - 2025 Unadjusted Adjusted
Service Level Development - Related Capital Program Development Charge Development Charge
per capita Total Net DC Recoverable $ /capita $ /sq.m $ /capita $ /sq.m
$174.31 $250,000 $25,955 $20.55 $0.00 $22.70 $0.00
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118 •
APPENDIX 13.6
TABLE 1 - PAGE 1
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
WASTE MANAGEMENT
BUILDINGS OPERATION # of Square Feet UNIT COST
Description of Operations at Site 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($lsq. ft.)
Weight Scale Building 20% Diversion / 80% Landfill 300 300 300 300 300 300 900 900 900 900 $47
Less Landfill Operations (80 %) (240) (240) (240) (240) (240) (240) (720) (720) (720) (720) $47
Reuse Building 90% Diversion / 10% Landfill 400 400 400 400 400 400 800 800 800 800 $420
Less Landfill Operations (10 %) (40) (40) (40) (40) (40) (40) (80) (80)
(80) (80) $420
Total (sq.ft.) 420 420 420 420 420 420 900 900 900 900
Total ($000) $154.0 $154.0 6154.0 $154.0 5154.0 $154.0 $310.9 6310.9 $310.9 $310.9
LAND OPERATION # of Hectares UNIT COST
Description of Operations at Site 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /ha)
Weight Scale Building 20% Diversion / 80% Landfill 0.06 0.06 0.06 0.06 0.06 0.06 0.17 0.17 0.17 0.17 $350,000
Less Landfill Operations (80 %) (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.14) 0.14
J ( ) (0.14) (0.14) $350,000
Reuse Building 90% Diversion / 10% Landfill 0.03 0.03 0.03 0.03 0.03 0.03 0.05 0.05 0.05 0.05 $350,000
Less Landfill Operations (10 %) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.01) (0.01) (0.01) (0.01) $350,000
Total (ha) 0.03 0.03 0.03 0.03 0.03 0.03 0.08 0.08 0.08 0.08
Total 0000) 511.8 511.8 $11.8 611.8 511.8 $11.8 $27.7 $27.7 $27.7 627.7
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119
APPENDIX B.6
TABLE 1 - PAGE 2
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
WASTE MANAGEMENT
VEHICLES OPERATION # of Vehicles UNIT COST
Vehicle Type Description of Operations at Slte 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /vehicle)
Compactor 0% Landfill Operations 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 $550,000
Ford F- Series Pickup Truck 10% Landfill Operations 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 $30,000
Less Landfill Operations (10 %) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) $30,000
BASWR Garbage Packers 0% Landfill Operations 2.6 2.6 2.6 2.6 2.6 2.6 2.6 2,6 2.6 2.6 $250,000
BASWR Recycling Trucks 0% Landfill Operations 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 $185,000
JD 624 Loader 0% Landfill Operations 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 $250,000
Total ( #) 6.8 6.8 6.8 6.8 6.8 6.8 6.8 6.8 6.8 6.8
Total ($000) $1,712.5 $1,712.5 $1,712.5 $1,712.5 $1,712.5 $1,712.5 $1,712.5 $1,712.5 $1,712.5 $1,712.5
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120
APPENDIX B.6
TABLE 1- PAGE 3
MUNICIPALITY OF KINCARDINE
INVENTORY OF CAPITAL ASSETS
WASTE MANAGEMENT
EQUIPMENT OPERATION # of Pieces of Equipment UNIT COST
Description Description of Operations at Site 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /unit)
Furniture and Equipment - Weight Scale House $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $9,000 $9,000 $9,000 $9,000
Less Landfill Operations (80 %) 20% Diversion / 80% Landfill ($2,400) ($2,400) ($2,400) ($2,400) ($2,400) ($2,400) ($7,200) ($7,200) ($7,200) ($7,200)
Furniture and Equipment- Reuse Building $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $8,000 $8,000 $8,000 $8,000
Less Landfill Operations (10 %) 90% Diversion / 10% Landfill ($400) ($400) ($400) ($400) ($400) ($400) ($800) ($800) ($800) ($800)
Other Equipment
Communication Equipment 20% Diversion / 80% Landfill - - - - - - 1.0 1.0 1.0 1.0 $835
Less Landfill Operations (80 %) - - - - - - (0.8) (0.8) (0.8) (0.8) $835
Total ( #) - - - - - - 0 0 0 0
Total (5000) $4.2 $4.2 $4.2 54.2 $4.2 $4.2 59.2 $9.2 59.2 $9.2
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APPENDIX B.6
TABLE 1 - PAGE 4
MUNICIPALITY OF KINCARDINE
CALCULATION OF SERVICE LEVELS
MUNICIPALITY OF KINCARDINE
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Historic Population 11,173 11,173 11,173 11,173 11,173 11,174 11,188 11,218 11,276 11,357
INVENTORY SUMMARY ($000)
Buildings $154.0 $154.0 $154.0 $154.0 $154.0 $154.0 $310.9 $310.9 $310.9 $310.9
Land $11.8 $11.8 $11.8 $11.8 $11.8 $11.8 $27.7 $27.7 $27.7 $27.7
Vehicles $1,712.5 $1,712.5 $1,712.5 $1,712.5 $1,712.5 $1,712.5 $1,712.5 $1,712.5 $1,712.5 $1,712.5_
Equipment $4.2 $4.2 $4.2 $4.2 $4.2 $4.2 $9.2 $9.2 $9.2 $9.2
Total ($000) $1,882.6 $1,882.6 $1,882.6 $1,882.6 $1,882.6 $1,882.6 $2,060.2 $2,060.2 $2,060.2 $2,060.2
Average
SERVICE LEVEL ($ /capita) Service
Level
Buildings $13.8 $13.8 $13.8 $13.8 $13.8 $13.8 $27.8 $27.7 $27.6 $27.4 _ $19.31
Land $1.1 $1.1 $1.1 $1.1 $1.1 $1.1 $2.5 $2.5 $2.5 $2.4 $1.62
Vehicles $153.3 $153.3 $153.3 $153.3 $153.3 $153.3 $153.1 $152.7 $151.9 $150.8 $152.80
Equipment $0.4 $0.4 $0.4 $0.4 $0.4 $0.4 $0.8 $0.8 $0.8 $0.8 $0.55
Total ($ /capita) $168.49 $168.49 $168.49 $168.49 $168.49 $168.48 $184.15 $183.64 $182.70 $181.40 $174.28
MUNICIPALITY OF KINCARDINE
CALCULATION OF MAXIMUM ALLOWABLE
MUNICIPALITY OF KINCARDINE
10 -Year Funding Envelope Calculation Excess Capacity Calculation
10 Year Average Service Level 2006 - 2015 $174.28 Total Value of Inventory in 2015 $2,060,177
Net Population Growth 2016 - 2025 973 Inventory Using Average Service Level $1,979,362
Maximum Allowable Funding Envelope $169,550 Excess Capacity $80,815
Less: Uncommitted Excess Capacity $80,815 Excess Capacity: Uncommitted
P tY�
Less: 10% Legislated Reduction $8,874
Discounted Maximum Allowable Funding Envelope $79,862
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APPENDIX B.6
TABLE 1
MUNICIPALITY OF KINCARDINE
DEVELOPMENT - RELATED CAPITAL PROGRAM
WASTE MANAGEMENT
Gross Grants/ Net Ineligible Costs Total DC Eligible Costs
Project Description Timing Project Subsidies /Other Municipal Replacement 10% DC Eligible Available 2016- Post
Cost Recoveries Cost & BTE Shares Reduction Costs DC Reserves 2025 2025
6.0 WASTE MANAGEMENT
6.1 Facilities and Site Works
6.1.1 Expansion /Improvements for Internal Driveways and Receiving Areas 2018 $ 250,000 $ - $ 250,000 $ 221,161 $ 2,884 $ 25,955 $ - $ 25,955 $ -
Subtotal Facilities and Site Works $ 250,000 $ - $ 250,000 $ 221,161 $ 2,884 $ 25,955 $ - $ 25,955 $ -
TOTAL WASTE MANAGEMENT $ 250,000 $ - $ 250,000 $ 221,161 $ 2,884 $ 25,955 $ - $ 25,955 $ -
Residential Development Charge Calculation
Residential Share of 2016 - 2025 DC Eligible Costs 100% $25,955 2016 -2025 Net Funding Envelope $ 79,861.9
10 -Year Growth in Population in New Units 1,263
Unadjusted Development Charge Per Capita $20.55 Reserve Fund Balance
Uncommitted Reserve Funds $0
Non - Residential Development Charge Calculation 2016 Capital Budget Draws
Non-Residential Share of 2016 -2025 DC Eligible Costs 0% $0 TOTAL $0
10 -Year Growth in Square Metres 77,499
Unadjusted Development Charge Per Square Metre $0.00
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APPENDIX B.6
TABLE 3
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WASTE MANAGEMENT
RESIDENTIAL DEVELOPMENT CHARGE
(in $000)
WASTE MANAGEMENT 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL
OPENING CASH BALANCE $0.00 $3.05 $6.11 ($18.44) ($16.61) ($14.57) ($12.22) ($9.63) ($6.70) ($3.41)
2011 -2020 RESIDENTIAL FUNDING REQUIREMENTS
- Waste Management: Non Inflated $0.0 $0.0 $26.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $26.0
- Waste Management: Inflated $0.0 $0.0 $27.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $27.0
NEW RESIDENTIAL DEVELOPMENT
- Population Growth in New Units 134 124 122 118 117 124 125 129 135 135 1,263
REVENUE
- DC Receipts: Inflated $3.0 $2.9 $2.9 $2.8 $2.9 $3.1 $3.2 $3.4 $3.6 $3.7 $31.5
INTEREST
- Interest on Opening Balance $0.0 $0.1 $0.2 ($1.0) ($0.9) ($0.8) ($0.7) ($0.5) ($0.4) ($0.2) ($4.2)
- Interest on In -year Transactions $0.1 $0.1 ($0.7) $0.0 $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 ($0.2)
TOTAL REVENUE $3.1 $3.1 $2.5 $1.8 $2.0 $2.4 $2.6 $2.9 $3.3 $3.6 $27.2
CLOSING CASH BALANCE $3.1 $6.1 ($18.4) ($16.6) ($14.6) ($12.2) ($9.6) ($6.7) ($3.4) $0.2
2016 Adjusted Charge Per Capita $22.70 Ailocatlon of Capital Program
Residential Sector 100.0%
Non- Residential Sector 0.0%
Rates for 2016
Inflation Rate: 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
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APPENDIX B.7
GENERAL GOVERNMENT
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APPENDIX B.7
GENERAL GOVERNMENT
The DCA allows the cost of development - related studies and other general
government functions to be included in the calculation of the development charges
as long as they are permitted under the legislation. Consistent with s.5(1)7 of the
DCA, the eligible development- related capital costs for the provision of studies and
permitted general government expenditures is reduced by ten per cent in calculating
the development charges.
TABLE 1 2016 - 2025 DEVELOPMENT- RELATED CAPITAL PROGRAM AND
CALCULATION OF THE UNADJUSTED DEVELOPMENT CHARGES
As shown on Table 1, the 2016 -2025 development - related gross cost for general
government is $192,500. An amount of, $57,500 has been identified as a benefit to
existing share recognizing that not all studies are entirely related to growth. The
legislated ten per cent discount is also reduced from the DC eligible share and
amounts to $13,500. The remaining amount of $121,500 is considered eligible for
development charges funding in the ten -year planning period. This amount is
included in the development charge calculation.
The total costs eligible for DC recovery amounts to $121,500 and is allocated 55 per
cent, or $66,830, to the residential sector and 45 per cent, or $54,680, to the non-
residential sector based on shares of ten -year growth in population in new units and
employment. The resulting unadjusted per capita residential charge is $52.91 before
cash flow adjustments. The non - residential unadjusted charge is $0.71 per square
metre.
TABLE 2 CASH FLOW ANALYSIS
After cash flow consideration, the residential charge increases to $56.14 per capita
and the non - residential charge also increases slightly to $0.75 per square metre.
The following table summarizes the calculation of the general government
development charge.
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GENERAL GOVERNMENT SUMMARY
2016 - 2025 Unadjusted Adjusted
Development - Related Capital Program Development Charge Development Charge
Total Net DC Recoverable $ /capita $ /sq.m $ /capita $ /sq.m
$192,500 $121,500 $52.91 $0.71 $56.14 $0.75
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APPENDIX B.7
TABLE 1
MUNICIPALITY OF KINCARDINE
DEVELOPMENT - RELATED CAPITAL PROGRAM
GENERAL GOVERNMENT
Gross Grants/ Net Ineligible Costs Total DC Eligible Costs
Project Description Timing Project Subsidies /Other Municipal Replacement 10% DC Eligible Available 2016- Post
Cost Recoveries Cost & BTE Shares Reduction Costs DC Reserves 2025 2025
7.0 GENERAL GOVERNMENT
7.1 Development - Related Studies
7.1.1 Official Plan Review 2016 $ 25,000 $ - $ 25,000 $ 12,500 $ - 1,250 $ 11,250 $ - $ 11,250 $ -
7.1.2 Development Charges Study 2016 $ 25,000 $ - $ 25,000 $ - $ 2,500 $ 22,500 $ - $ 22,500 $ -
7.1.3 Zoning By -law Update • 2017 $ 25,000 $ - $ 25,000 $ 12,500 $ 1,250 $ 11,250 $ - $ 11,250 $ -
7.1.4 Parks and Recreation Master Plan 2019 $ 40,000 $ - $ 40,000 $ 20,000 $ 2,000 $ 18,000 $ - $ 18,000 $ -
7.1.5 Growth Management Review 2021 $ 25,000 $ - $ 25,000 $ - $ 2,500 $ 22,500 $ - $ 22,500 $ -
7.1.6 Development Charges Study 2021 $ 27,500 $ - $ 27,500 $ - $ 2,750 $ 24,750 $ - $ 24,750 $ -
7.1.7 Zoning By -law Update 2021 $ 25,000 $ - $ 25,000 $ 12,500 $ 1,250 $ 11,250 $ - $ 11,250 $ -
Subtotal Development - Related Studies $ 192,500 $ - $ 192,500 $ 57,500 $ 13,500 $ 121,500 $ - $ 121,500 $ -
TOTAL GENERAL GOVERNMENT $ 192,500 $ - $ 192,500 $ 57,500 $ 13,500 $ 121,500 $ - $ 121,500 $ -
Residential Development Charge Calculation
Residential Share of 2016 - 2025 DC Eligible Costs 55% $66,825 Reserve Fund Balance
10 -Year Growth in Population in New Units 1,263 Uncommitted Reserve Funds $0
Unadjusted Development Charge Per Capita 552.91 2016 Capital Budget Draws
TOTAL $0
Non - Residential Development Charge Calculation
Non - Residential Share of 2016 - 2025 DC Eligible Costs 45% $54,675
10 -Year Growth in Square Metres 77,499
Unadjusted Development Charge Per Square Metre $0.71
•
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APPENDIX B.7
TABLE 2 - PAGE 1
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
GENERAL GOVERNMENT
RESIDENTIAL DEVELOPMENT CHARGE
(In $000)
GENERAL GOVERNMENT 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL
OPENING CASH BALANCE $0.00 ($11.37) ($11.19) ($4.58) ($8.43) ($1.67) ($30.36) ($23.99) ($16.86) ($8.73)
2011 -2020 RESIDENTIAL FUNDING REQUIREMENTS
- General Govemment: Non Inflated $18.6 $6.2 $0.0 $9.9 $0.0 $32.2 $0.0 $0.0 $0.0 $0.0 $66.8
- General Govemment: Inflated $18.6 $6.3 $0.0 $10.5 $0.0 $35.5 $0.0 $0.0 $0.0 $0.0 $70.9
NEW RESIDENTIAL DEVELOPMENT
- Population Growth in New Units 134 124 122 118 117 124 125 129 135 135 1,263
REVENUE
- DC Receipts: Inflated $7.5 $7.1 $7.1 $7.0 $7.1 $7.7 $7.9 $8.3 $8.9 $9.1 $77.7
INTEREST
- Interest on Opening Balance $0.0 ($0.6) ($0.6) ($0.3) ($0.5) ($0.1) ($1.7) ($1.3) ($0.9) ($0.5) ($6.4)
- Interest on In -year Transactions ($0.3) $0.0 $0.1 ($0A) $0.1 ($0.8) $0.1 $0.1 $0.2 $0.2 ($0.3)
TOTAL REVENUE $7.2 $6.5 $6.6 $6.7 $6.8 $6.8 $6.4 $7.1 $8.1 $8.8 $71.0
CLOSING CASH BALANCE ($11.4) ($11.2) ($4.6) ($8.4) ($1.7) ($30.4) ($24.0) ($16.9) ($8.7) $0.0
2016 Adjusted Charge Per Capita $56.14 Allocation of Capital Program
Residential Sector 55.0%
Non - Residential Sector 45.0%
Rates for 2016
Inflation Rate: 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
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129
APPENDIX B.7
TABLE 2 - PAGE 2
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
GENERAL GOVERNMENT
NON - RESIDENTIAL DEVELOPMENT CHARGE
(In $000)
GENERAL GOVERNMENT 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL
OPENING CASH BALANCE $0.00 ($9.54) ($9.32) ($3.62) ($6.18) ($0.01) ($24.74) ($19.28) ($13.42) ($6.94)
2011 -2020 NON - RESIDENTIAL FUNDING REQUIREMENTS
- General Govemment: Non Inflated $15.2 $5.1 $0.0 $8.1 $0.0 $26.3 $0.0 $0.0 $0.0 $0.0 $54.7
- General Govemment: Inflated $15.2 $5.2 $0.0 $8.6 $0.0 $29.1 $0.0 $0.0 $0.0 $0.0 $58.0
NON - RESIDENTIAL SPACE GROWTH
- Growth in Square Metres 7,892 7,751 7,755 7,944 7,944 6,078 7,976 7,927 8,116 8,116 77,499
REVENUE
- DC Receipts: Inflated $5.9 $5.9 $6.1 $6.3 $6.4 $5.0 $6.7 $6.8 $7.1 $7.3 $63.5
INTEREST
- Interest on Opening Balance $0.0 ($0.5) ($0.5) ($0.2) ($0.3) ($0.0) ($1.4) ($1.1) ($0.7) ($0.4) ($5.1)
- Interest on In -year Transactions ($0.3) $0.0 $0.1 ($0.1) $0.1 ($0.7) $0.1 $0.1 $0.1 $0.1 ($0.3)
TOTAL REVENUE $5.6 $5.4 $5.7 $6.0 $6.2 $4.3 $5.5 $5.9 $6.5 $7.0 $58.1
CLOSING CASH BALANCE ($9.5) ($9.3) ($3.6) ($6.2) ($0.0) ($24.7) ($19.3) ($13.4) ($6.9 ) $0.1
2016 Adjusted Charge Per Square Metre $0.75 Allocation of Capital Program
Residential Sector 55.0%
Non - Residential Sector 45.0%
Rates for 2011
Inflation Rate 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
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130
APPENDIX C
ENGINEERING INFRASTRUCTURE
TECHNICAL APPENDIX
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131
APPENDIX C
ENGINEERED SERVICES TECHNICAL APPENDIX
ROADS AND RELATED, WATER AND WASTEWATER SERVICES
The Public Works department oversees the administration of capital works programs,
detailed engineering design, environmental assessments, technical engineering
review and all other aspects of planning, management and operation of the
Municipality of Kincardine's infrastructure. The department ensures that the
Municipality's municipal services such as roads, water and wastewater systems 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
related to Roads and Related, Water and Wastewater services. The Roads and
Related infrastructure includes the roads themselves, sidewalks, and also bridges. The
Water Services include water supply, storage and distribution system and the
Wastewater Service provides for sewage treatment and sewage collection.
The development - related Roads and Related, Water and Wastewater infrastructure
projects are required to service the demands of new development over the 2016 -2031
period related to a total population growth of 1,480 persons and total employment
growth of 1,570. This forecast is discussed in more detail in Appendix A.
The following appendices set out the 2016 to 2031 development- related capital
forecast and the calculation of the development charge for Roads, Water and
Wastewater services. The cost, quantum and description of the projects included in
the forecast have been provided by Municipal staff and are based on the
Municipality's budgets, consulting resources at BM Ross, and other capital planning
documents. This report identifies the necessary engineering infrastructure to allow
the municipality to meet the servicing needs of the forecast population and
employment growth to 2031.
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132
APPENDIX C.1
ROADS AND RELATED
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133
APPENDIX C.1
ROADS AND RELATED
This appendix provides the detailed analysis undertaken to establish the
development charge rates for the Roads and Related Services category in the
Municipality of Kincardine. The service category includes the road network as well
sidewalks, traffic control, and lane improvements etc.
The projects identified in the capital program are required to service the demands of
new development between 2016 and 2031, subject to annual capital budget reviews.
Consistent with s.5.(1)7. of the DCA, there is no legislated percentage reduction in
the eligible development- related capital cost for the provision of Roads and Related
infrastructure.
The following tables set out the 2016 to 2031 development - related capital program
and the calculation of the development charges for Roads and Related Services. The
content of the tables is as follows:
Table 1 Roads and Related Capital Program 2016 -2031 and Calculation of the
Development Charge
Table 2 Residential Cash Flow Analysis
Table 3 Non - Residential Cash Flow Analysis
The total cost of the Roads and Related capital program is $4.50 million (Table 1)
and provides for the undertaking of various projects in the Municipality. The first
project includes for a $50,000 study relating to intersection improvements at
Durham Street. Following the study, the Municipality anticipates to undertake the
capital works relating to the intersection improvements in 2017 for a total cost of
$500,000.
The construction of a new sidewalk on St. Albert Street is also anticipated in 2017
at a cost of $150,000. The Municipality will also undertake the widening of Browns
Hill Bridge from a single to double lane. The cost of the widening is estimated at
$3,000,000. The last Roads and Related capital project is the
expansion /improvement of Hanlin Street to an urban standard at a cost of $800,000.
The project is intended to provide a new exit that will connect the new portion of
Hanlin Street with an existing road.
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134
The Municipality does not expect to receive any grants for any of the identified
Roads and Related capital works. However, the entire $4.50 million development -
related roads capital program will not be fully recovered from future development
charges. A share of the program, $3.00 million, has been determined to be a benefit
to existing share and is removed from the DC calculations and will be funded from
other municipal revenue sources. The benefit to existing shares were informed
through discussions with Municipal staff based on the proposed scope of the roads
proj ects.
After this deduction, the remaining $1.50 million is considered to be related to
development over the 2016 -2031 period. The development- related cost has been
allocated 56 per cent, or $840,000, to residential development and 44 per cent, or
$660,000, to non - residential development. The allocation of costs is based on shares
of population and employment growth over the planning period.
The residential costs are recovered against the population growth over the period
2016 -2031 of 1,990 persons yielding an unadjusted charge of $423.17 per capita. The
non- residential costs are recovered against the development in non - residential floor
area over the period 2016 -2031 of 118,070 square metres yielding a charge of $5.59
per square metre.
As shown in Tables 3 and 4, after cash flow considerations, the adjusted residential
charge increases to $494.02 per capita and the adjusted charge per square metre
increases to $6.50.
The following is a summary of the calculated Roads and Related development
charges:
ROADS AND RELATED SUMMARY
2016 - 2031 Unadjusted Adjusted
Development - Related Capital Program Development Charge Development Charge
Total Net DC Recoverable $ /capita $ /sq.m $ /capita $ /sq.m
$4,500,000 $1,500,000 $423.17 $5.59 $494.02 $6.50
i
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135
APPENDIX C.1
TABLE 1
MUNICIPALITY OF KINCARDINE
DEVELOPMENT- RELATED CAPITAL PROGRAM
ROADS AND RELATED
Gross Grants/ Net ineligible Costs Total DC Eligible Costs
Project Description Timing Project Subsidies /Other Municipal Replacement 0% DC Eligible Available 2016- Post
Cost Recoveries Cost & BTE Shares Reduction Costs DC Reserves 2031 2031
1.0 ROADS AND RELATED
1.1 Road Projects
1.1.1 Durham St Intersection Improvements - Needs Study 2016 $ 50,000 $ - $ 50,000 $ 25,000 $ - $ 25,000 $ - $ 25,000 $ -
1.1.2 Durham St Intersection Improvements 2017 $ 500,000 $ - $ 500,000 $ 250,000 $ - $ 250,000 $ - $ 250,000 $ -
1.1.3 St. Albert Sidewalk 2017 $ 150,000 $ - $ 150,000 $ 75,000 $ - $ 75,000 $ - $ 75,000 $ -
1.1.4 Browns Hill Bridge - Widening 2018 $ 3,000,000 $ - $ 3,000,000 $ 2,250,000 $ - $ 750,000 $ - $ 750,000 $ -
1.1.5 Hanlin St - Expansion /Improvement to Urban Standard 2022 $ 800,000 $ - $ 800,000 $ 400,000 $ - $ 400,000 $ - $ 400,000 $ -
Subtotal Road Projects $ 4,500,000 $ - $ 4,500,000 $ 3,000,000 $ - $ 1,500,000 $ - $ 1,500,000 $ -
TOTAL ROADS AND RELATED $ 4,500,000 $ - $ 4,500,000 $ 3,000,000 $ - $ 1;500,000 $ - $ 1,500,000 $ -
Residential Development Charge Calculation
Residential Share of 2016 - 2031 DC Eligible Costs 56% $840,000 Reserve Fund Balance
16 -Year Growth in Population in New Units 1,985 Uncommitted Reserve Funds $0
Unadjusted Development Charge Per Capita $423.17 2016 Capital Budget Draws VI
TOTAL $0
Non - Residential Development Charge Calculation
Non - Residential Share of 2016 - 2031 DC Eligible Costs 44% $660,000
16 -Year Growth in Square Metres 118,072
Unadjusted Development Charge Per Square Metre $5.59
HEMSON
136
APPENDIX C.1
TABLE 2
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
ROADS AND RELATED
RESIDENTIAL DEVELOPMENT CHARGE
(in $000)
ROADS AND RELATED 2016 2017 2018 2019 2020 2021 2022 2023 2024
OPENING CASH BALANCE $0.0 $53.1 ($71.6) ($460.0) ($422.4) ($381.9) ($334.1) ($540.3) ($495.5)
2011 -2031 RESIDENTIAL FUNDING REQUIREMENTS
- Roads And Related: Non Inflated $14.0 $182.0 $420.0 $0.0 $0.0 $0.0 $224.0 $0.0 $0.0
- Roads And Related: Inflated $14.0 $185.6 $437.0 $0.0 $0.0 $0.0 $252.3 $0.0 $0.0
NEW RESIDENTIAL DEVELOPMENT
- Population Growth in New Units 134 124 122 118 117 124 125 129 135
REVENUE
- DC Receipts: Inflated $66.2 $62.5 $62.7 $61.9 $62.6 $67.6 $69.5 $73.2 $78.1
INTEREST
- Interest on Opening Balance $0.0 $1.9 ($3.9) ($25.3) ($23.2) ($21.0) ($18.4) ($29.7) ($27.3)
- Interest on In -year Transactions $0.9 ($3.4) ($10.3) $1.1 $1.1 51.2 ($5.0) $1.3 $1.4
TOTAL REVENUE $67.1 $61.0 $48.5 $37.7 $40.5 $47.8 $46.1 $44.8 $52.2
CLOSING CASH BALANCE $53.1 ($71.6) ($460.0) ($422.4) ($381.9) ($334.1) ($540.3) ($495.5) ($443.3)
ROADS AND RELATED 2025 2026 2027 2028 2029 2030 2031 TOTAL
OPENING CASH BALANCE ($443.3) ($386.6) ($325.1) ($271.2) ($210.9) ($145.8) (575.6) 80.0
2011- 2031 RESIDENTIAL FUNDING REQUIREMENTS
- Roads And Related: Non Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $840.0
- Roads And Related: Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 8888.9
NEW RESIDENTIAL DEVELOPMENT
- Population Growth in New Units 135 135 115 118 118 118 118 1,985
REVENUE
- DC Receipts: Inflated $79.7 $81.3 $70.6 $73.9 $75.4 $76.9 $78.5 $1,140.6
INTEREST
- InterestonOpeningBalance ($24.4) ($21.3) ($17.9) ($14.9) ($11.6) ($8.0) ($4.2) ($249.2)
- Interest on In -year Transactions $1.4 $1.4 $1.2 $1.3 $1.3 $1.3 $1.4 ($2.4)
TOTAL REVENUE $56.7 $61.5 $54.0 $60.3 $65.1 $70.2 $75.7 $889.0
CLOSING CASH BALANCE ($386.6) ($325.1) ($271.2) ($210.9) ($145.8) ($75.6) $0.2
2016 Adjusted Charge Per Capita $494.02 Allocation of Capital Program
Residential Sector 56.0%
Non - Residential Sector 44.0%
Rates for 2016
Inflation Rate 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
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137
APPENDIX C.1
TABLE 3
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
ROADS AND RELATED
NON- RESIDENTIAL DEVELOPMENT CHARGE
(in 8000)
ROADS AND RELATED 2016 2017 2018 2019 2020 2021 2022 2023 2024
OPENING CASH BALANCE $0.0 $41.0 ($54.6) ($356.6) ($320.4) ($281.1) ($252.2) ($409.8) ($372.1)
2011 -2031 NON - RESIDENTIAL FUNDING REQUIREMENTS
- Roads And Related: Non Inflated $11.0 $143.0 $330.0 $0.0 $0.0 $0.0 $176.0 $0.0 $0.0
- Roads And Related: Inflated $11.0 $145.9 $343.3 $0.0 $0.0 $0.0 $198.2 $0.0 $0.0
NON - RESIDENTIAL SPACE GROWTH
- Growth in Square Metres 7,892 7,751 7,755 7,944 7,944 6,078 , 7,976 7,927 8,116
REVENUE
- DC Receipts: Inflated $51.3 $51.4 $52.4 $54.8 $55.9 $43.6 $58.4 $59.2 $61.8
INTEREST
- Interest on Opening Balance $0.0 $1.4 ($3.0) ($19.6) ($17.6) ($15.5) ($13.9) ($22.5) ($20.5)
- Interest on In -year Transactions $0.7 ($2.6) ($8.0) $1.0 $1.0 $0.8 ($3.8) $1.0 $1.1
TOTAL REVENUE $52.0 $50.2 $41.4 $36.1 $39.3 $28.9 $40.7 $37.7 $42.4
CLOSING CASH BALANCE $41.0 ($54.6) ($356.6) ($320.4) ($281.1) ($252.2) ($409.8) ($372.1) ($329.7)
ROADS AND RELATED 2025 2026 2027 2028 2029 2030 2031 TOTAL
OPENING CASH BALANCE ($329.7) ($283.7) ($249.7) ($207.2) ($161.7) ($111.0) ($56.2)
2011 -2031 NON - RESIDENTIAL FUNDING REQUIREMENTS
- Roads And Related: Non Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $660.0
- Roads And Related: Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 8698.4
NON - RESIDENTIAL SPACE GROWTH
- Growth in Square Metres 8,116 6,149 6,844 6,780 6,969 6,969 6,862 118,072
REVENUE
- DC Receipts: Inflated $63 $49 $55 $56 $59 $60 $60 $890.1
INTEREST
- Interest on Opening Balance ($18.1) ($15.6) ($13.7) ($11.4) ($8.9) ($6.1) ($3.1) (8188.1)
- Interest on In -year Transactions
TOTAL REVENUE $46.0 $33.9 $42.5 $45.5 $50.7 $54.7 $58.0 $700.1
CLOSING CASH BALANCE ($283.7) ($249.7) ($207.2) ($161.7) ($111.0) ($56.2) $1.7
2016 Adjusted Charge Per Square Metre $6.50 Allocation of Capital Program
Residential Sector 56.0%
Non - Residential Sector 44.0%
Rates for 2016
Inflation Rate 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
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APPENDIX C.2
WATER SERVICES
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APPENDIX C.2
WATER SERVICES
This appendix provides a brief outline of the Water Services provided by the
Municipality of Kincardine, which provides for water treatment and distribution.
These development- related projects are required in order to accommodate growth as
the Municipality continues to develop over the next 16 years (2016 to 2031).
The following sections set out the 2016 — 2031 development- related capital forecast
and the calculation of the development charge. The project list is based upon
discussions with Municipal staff. These discussions have informed the cost, quantum
and timing of the projects included in the forecast. Consistent with s. 5. (1) 7. of the
DCA, there is no legislated percentage reduction in the eligible development- related
capital cost for the provision of water infrastructure. The following tables
Table 1 Water Service Development- Related Capital Projects and
Calculation of Development Charge
Table 2 Residential Cash Flow Analysis
Table 3 Non - Residential Cash Flow Analysis
The cost of providing development- related water services in the Municipality is
displayed on Table 1 and includes the recovery of cost associated with providing
additional water storage. The total cost of the water service capital program is $3.0
million.
The entire $3.0 million development- related capital program is to be fully recovered
from future development charges. Of the total development charge eligible costs,
available DC reserve funds in the amount of $245,280 have been applied against the
project.
As shown on Table 1, the share of the program related to development over the
2016 -2031 period is $3.0 million and is allocated 56 per cent ($1.54 million) to
residential development and 44 per cent ($1.21 million) to non - residential
development. The residential costs are recovered against the population growth over
the period 2016 -2031 of 1,990 persons yielding an unadjusted charge of $777.15 per
capita. The non - residential costs are recovered against the development in non -
residential floor area over the period 2016- 2031of 118,070 square metres yielding an
unadjusted charge of $10.27 per square metre.
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The long term cash -flow analysis (Tables 2 - 3) takes into consideration expenditure
timing and revenue projections. The effect of the analysis is a decrease to the
development charge rates resulting from project timing, receipt of development
charges and interest. Table 2 displays the residential cash flow analysis and Table 3
shows the non- residential cash flows.
The following is a summary of the Water Services calculated unadjusted and adjusted
development charge rates. After cash flow considerations, the residential charge per
capita decreases to $765.27 and the non - residential charge decreases to $10.09 per
square metre.
WATER SUMMARY
2016 - 2031 Unadjusted Adjusted
Development - Related Capital Program Development Charge Development Charge
Total Net DC Recoverable $ /capita $ /sq.m $ /capita $ /sq.m
$3,000,000 $2,754,718 $777.15 $10.27 $765.27 $10.09
HEMS ON
141
APPENDIX C.2
TABLE 1
MUNICIPALITY OF KINCARDINE
DEVELOPMENT - RELATED CAPITAL PROGRAM
WATER
Gross Grants/ Net Ineligible Costs Total DC Eligible Costs
Project Description Timing Project Subsidies/Other Municipal Replacement 0% DC Eligible Available 2016- Post
Cost Recoveries Cost & BTE Shares Reduction Costs DC Reserves 2031 2031
2.0 WATER
2.1 Water Projects
21.1 Additional Water Storage 2026 $ 3,000,000 $ - $ 3,000,000 $ - $ - $ 3,000,000 $ 245,282 $ 2,754,718 $ -
Subtotal Water Projects $ 3,000,000 $ - $ 3,000,000 $ - $ - $ 3,000,000 $ 245,282 $ 2,754,718 $ -
TOTAL WATER $ 3,000,000 $ - $ 3,000,000 $ - $ $ 3,000,000 $ 245,282 $ 2,754,718 $ -
Residential Development Charge Calculation
Residential Share of 2016 - 2031 DC Eligible Costs 56% $1,542,642 Reserve Fund Balance $245,282
16 -Year Growth in Population in New Units 1,985 Uncommitted Reserve Funds $0
Unadjusted Development Charge Per Capita $777.15 2016 Capital Budget Draws Li
TOTAL $0
Non - Residential Development Charge Calculation
Non - Residential Share of 2016 - 2031 DC Eligible Costs 44% $1,212,076
16 -Year Growth in Square Metres 118,072
Unadjusted Development Charge Per Square Metre $10.27
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APPENDIX C.2
TABLE 2
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WATER
RESIDENTIAL DEVELOPMENT CHARGE
(In $000)
WATER 2016 2017 2018 2019 2020 2021 2022 2023 2024
OPENING CASH BALANCE $0.0 $104.3 $206.4 $312.5 $420.9 $534.2 $659.5 $792.2 $935.3
2011 -2031 RESIDENTIAL FUNDING REQUIREMENTS
- Water: Non Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
- Water: Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
NEW RESIDENTIAL DEVELOPMENT '1
- Population Growth in New Units 134 124 122 118 117 124 125 129 135
REVENUE
- DC Receipts: Inflated $102.5 $96.8 $97.1 $95.8 $96.9 $104.8 $107.7 $113.4 $121.0
INTEREST
- Interest on Opening Balance $0.0 $3.7 $7.2 $10.9 $14.7 $18.7 $23.1 $27.7 $32.7
- Interest on In -year Transactions $1.8 $1.7 $1.7 $1.7 $1.7 $1.8 $1.9 $2.0 $2.1
TOTAL REVENUE $104.3 $102.1 $106.0 $108.4 $113.3 $125.3 $132.7 $143.1 $155.9
CLOSING CASH BALANCE $104.3 $206.4 $312.5 $420.9 $534.2 $659.5 $792.2 $935.3 $1,091.2
WATER 2025 2026 2027 2028 2029 2030 2031 TOTAL
OPENING CASH BALANCE $1,091.2 $1,255.0 ($503.9) ($420.3) ($326.9) ($226.0) ($117.2) 80.0
2011 -2031 RESIDENTIAL FUNDING REQUIREMENTS
- Water: Non Inflated $0.0 $1,542.6 $0.0 $0.0 $0.0 $0.0 $0.0 81,542.6
- Water: Inflated $0.0 $1,880.5 $0.0 $0.0 $0.0 $0.0 $0.0 $1,880.5
NEW RESIDENTIAL DEVELOPMENT
- Population Growth in New Units 135 135 115 118 118 118 118 1,985
REVENUE
- DC Receipts: Inflated $123.5 $125.9 $109.4 $114.5 $116.8 $119.2 $121.5 81,766.8
INTEREST
- Interest on Opening Balance $38.2 $43.9 ($27.7) ($23.1) ($18.0) ($12.4) ($6.4) $133.2
- Interest on In -year Transactions $2.2 ($48.3) $1.9 $2.0 $2.0 $2.1 $2.1 ($19.5)
TOTAL REVENUE $163.9 $121.6 $83.6 $93.4 $100.9 $108.9 $117.2 $1,880.5
CLOSING CASH BALANCE $1,255.0 ($503.9) ($420.3) ($326.9) ($226.0) ($117.2) $0.0
2016 Adjusted Charge Per Capita 8765.27 Allocation of Capital Program
Residential Sector 56.0%
Non- Residential Sector 44.0%
Rates for 2016
Inflation Rate 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
HEMSON
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APPENDIX C.2
TABLE 3
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WATER
NON - RESIDENTIAL DEVELOPMENT CHARGE
(in $000)
WATER 2016 2017 2018 2019 2020 2021 2022 2023 2024
OPENING CASH BALANCE $0.0 $81.0 $165.0 $253.6 $349.1 $449.6 $534.2 $645.1 $761.2
2011 -2031 NON - RESIDENTIAL FUNDING REQUIREMENTS
- Water: Non Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
- Water: Inflated $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
NON - RESIDENTIAL SPACE GROWTH
- Growth in Square Metres 7,892 7,751 7,755 7,944 7,944 6,078 7,976 7,927 8,116
REVENUE
- DC Receipts: Inflated $79.6 $79.8 $81.4 $85.1 $86.8 $67.7 $90.6 $91.9 $95.9
INTEREST
- Interest on Opening Balance $0.0 $2.8 $5.8 $8.9 $12.2 $15.7 $18.7 $22.6 $26.6
- Interest on In -year Transactions $1.4 $1.4 $1.4 $1.5 $1.5 $1.2 $1.6 $1.6 $1.7
TOTAL REVENUE $81.0 $84.0 $88.6 $95.5 $100.5 $84.6 $110.9 $116.1 $124.2
CLOSING CASH BALANCE $81.0 $165.0 $253.6 $349.1 $449.6 $534.2 $645.1 $761.2 $885.4
WATER 2025 2026 2027 2028 2029 2030 2031 TOTAL
OPENING CASH BALANCE $885.4 $1,016.0 ($388.9) (5322.8) ($252.3) ($173.6) ($88.7)
2011 -2031 NON- RESIDENTIAL FUNDING REQUIREMENTS
- Water. Non Inflated $0.0 $1,212.1 $0.0 $0.0 $0.0 $0.0 $0.0 $1,212.1
- Water: Inflated $0.0 $1,477.5 $0.0 $0.0 $0.0 $0.0 $0.0 $1,477.5
NON- RESIDENTIAL SPACE GROWTH
- Growth in Square Metres 8,116 6,149 6,844 6,780 6,969 6,969 6,862 118,072
REVENUE
- DC Receipts: Inflated $98 $75.6 $85.9 $86.8 $91.0 $92.8 $93.2 $1,382.0
INTEREST
- Interest on Opening Balance $31.0 $35.6 ($21.4) ($17.8) ($13.9) (59.5) ($4.9) $112.5
- Interest on In -year Transactions $1.7 ($38.6) $1.5 $1.5 $1.6 51.6 $1.6 ($15.7)
TOTAL REVENUE $130.6 $72.6 $66.0 $70.6 $78.7 $84.9 $90.0 $1,478.8
CLOSING CASH BALANCE $1,016.0 ($388.9) ($322.8) ($252.3) ($173.6) ($88.7) $1.3
2016 Adjusted Charge Per Square Metre 810.09 Allocation of Capital Program
Residential Sector 56.0%
Non - Residential Sector 44.0%
Rates for 2016
Inflation Rate 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
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APPENDIX C.3
WASTEWATER SERVICES
HEMSON
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APPENDIX C.3
WASTEWATER SERVICES
This appendix provides a brief outline of the Wastewater Services provided by the
Municipality of Kincardine. The capital program provides for the development of
trunk sewers, pumping stations, provisions for additional sewage capacity and inflow
and infiltration works.
The cost, quantum and description of the projects included in the forecast have been
provided by Municipal staff and are based on the Municipality's budgets, consulting
resources at BM Ross, and other capital planning documents. Tables 1 — 3 provide
details of the projects included in the Municipal -wide Wastewater Services
development charges calculation. The content of the tables is as follows:
Table 1 Wastewater Development- Related Capital Program and Calculation
of Development Charge
Table 2 Residential Cash Flow Analysis
Table 3 Non - Residential Cash Flow Analysis
The Municipality's wastewater development - related capital program totals $9.40
million for the 2016 -2031 period. The first project in the capital program is the
Connaught sewage pumping station and trunk sewer for $3.35 million. Recognizing
that some of the Municipality's existing residential units will be serviced by the
project, $1.67 million of the total project cost has been identified as a benefit to
existing share and is removed from the DC calculation. The second project in the
capital program provides for a sewage pumping station at Park Street. The project is
anticipated to cost $956,000 in 2020. A share of $382,400, or 40 per cent, of the
total project cost is deemed to benefit existing development and not included in the
DC calculation. The Municipality has also included a provision for additional sewage
capacity in 2020 for $4.10 million. In addition, the provision for additional inflow
and infiltration (I &I) works are provided at a cost of $500,000 over the 2016 -2023
planning period and an additional $500,000 over the 2024 -2031 period. In total,
$660,000 has been identified as the benefit to share for the I &I works which reflects
the average daily flow over the current rated capacity of the Municipality's
wastewater treatment plant.
Available DC reserve funds have been to projects identified in the 2011 DC Study.
In total, $90,340 has been committed to the Connaught sewage pumping station and
HEMSON
146 •
trunk sewer and $315,240 has been committed against the provision for additional
sewage capacity. The remaining development - related cost, $6.28 million has been
allocated 56 per cent, or $3.52 million, to residential development and 44 per cent,
or $2.76 million, to non - residential development. The allocation of costs is based on
shares of population and employment growth over the planning period. The
residential costs are recovered against the population growth over the period 2016-
2031 of 1,990 persons yielding an unadjusted charge of $1,771.83 per capita. The
non - residential costs are recovered against the development in non - residential floor
area over the period 2016- 2031of 118,070 square metres yielding an unadjusted
charge of $23.40 per square metre.
The long term cash -flow analysis (Tables 2 - 3) takes into consideration expenditure
timing and revenue projections. The relationship, between the timing of the
infrastructure emplacement preceding the development, is normal and expected as
the wastewater infrastructure needs to be in place prior to full - development of the
benefiting lands. Table 2 displays the residential cash flow analysis, and Table 3
shows the non - residential cash flows.
The following is a summary of the Wastewater Services calculated unadjusted and
adjusted development charge rates. After cash flow considerations, the residential
charge per capita increases to $2,017.73 and the non - residential charge increases to
$26.53 per square metre.
WASTEWATER SUMMARY
2016 - 2031 Unadjusted Adjusted
Development - Related Capital Program Development Charge Development Charge
Total Net DC Recoverable $ /capita $ /sq.m $ /capita $ /sq.m
$9,401,000 $6,280,521 $1,771.83 $23.40 $2,017.73 $26.53
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APPENDIX C.3
TABLE 1
MUNICIPALITY OF KINCARDINE
DEVELOPMENT - RELATED CAPITAL PROGRAM
WASTEWATER
Gross Grants/ Net Ineligible Costs Total DC Eligible Costs
Project Description Timing Project Subsidies /Other Municipal Replacement 0% DC Eligible Available 2016- Post
Cost Recoveries Cost & BTE Shares Reduction Costs DC Reserves 2031 2031
3.0 WASTEWATER
3.1 Wastewater Projects
3.1.1 Connaught SPS and Trunk Sewer 2017 -2018 $ 3,345,000 $ - $ 3,345,000 $ 1,672,500 $ - $ 1,672,500 $ 90,342 $ 1,582,158 $ -
3.1.2 Sewage Pumping Station (Park St) 2020 $ 956,000 $ - $ 956,000 $ 382,400 $ - $ 573,600 $ - $ 573,600 $ -
3.1.3 Provision for Additional Sewage Cacacity 2020 $ 4,100,000 $ - $ 4,100,000 $ - $ - $ 4,100,000 $ 315,237 $ 3,784,763 $ -
3.1.4 I &I Provision for Additional Projects 2016 -2023 $ 500,000 $ - $ 500,000 $ 330,000 $ - $ 170,000 $ - $ 170,000 $ -
3.1.5 I &I Provision for Additional Projects 20242031 $ 500,000 $ - $ 500,000 $ 330,000 $ - $ 170,000 $ - $ 170,000 $ -
$ 9,401,000 $ - $ 9,401,000 $ 2,714,900 $ - $ 6,686,100 $ 405,579 $ . 6,280,521 $ -
TOTAL WASTEWATER $ 9,401,000 $ - $ 9,401,000 $ 2,714,900 $ - $ 6,686,100 $ 405,579 $ 6,280,521 $ -
Residential Development Charge Calculation
Residential Share of 2016 - 2031 DC Eligible Costs 56% $3,517,092 Reserve Fund Balance $405,579
16 -Year Growth in Population in New Units 1,985 Uncommitted Reserve Funds $0
Unadjusted Development Charge Per Capita $1,771.83 2016 Capital Budget Draws 22
TOTAL $0
Non- Residential Development Charge Calculation
Non- Residential Share of 2016 - 2031 DC Eligible Costs 44% $2,763,429
16 -Year Growth in Square Metres 118,072
Unadjusted Development Charge Per Square Metre $23.40
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APPENDIX C.3
TABLE 2
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WASTEWATER
RESIDENTIAL DEVELOPMENT CHARGE
(in 8
WASTEWATER 2016 2017 2018 2019 2020 2021 2022 2023 2024
OPENING CASH BALANCE $0.0 $263.0 $57.7 ($163.5) $71.8 ($2,390.9) ($2,254.7) ($2,103.4) ($1,928.8)
2011- 2031 RESIDENTIAL FUNDING REQUIREMENTS
- Wastewater: Non Inflated $11.9 $454.9 $454.9 $11.9 $2,452.6 $11.9 $11.9 $11.9 $11.9
- Wastewater: Inflated $11.9 $464.0 $473.3 $12.6 $2,654.8 $13.1 $13.4 $13.7 $13.9
NEW RESIDENTIAL DEVELOPMENT
- Population Growth in New Units 134 124 122 118 117 124 125 129 135
REVENUE
- DC Receipts: Inflated $270.4 $255.2 $256.1 $252.7 $255.5 $276.2 $284.0 $299.0 $319.2
INTEREST
- Interest on Opening Balance $0.0 $9.2 $2.0 ($9.0) $2.5 ($131.5) ($124.0) ($115.7) ($106.1)
- Interest on In -year Transactions $4.5 ($5.7) ($6.0) $4.2 ($66.0) $4.6 $4.7 $5.0 $5.3
TOTAL REVENUE $274.9 $258.7 $252.1 $247.9 $192.0 $149.3 $164.7 $188.3 $218.5
CLOSING CASH BALANCE $263.0 $57.7 ($163.5) $71.8 ($2,390.9) ($2,254.7) ($2,103.4) ($1,928.8) ($1,724.2)
WASTEWATER 2025 2026 2027 2028 2029 2030 2031 TOTAL
OPENING CASH BALANCE ($1,724.2) ($1,502.4) ($1,261.9) ($1,052.8) ($818.8) ($566.1) ($293.5) 00.0
2011 -2031 RESIDENTIAL FUNDING REQUIREMENTS
- Wastewater: Non Inflated $11.9 $11.9 $11.9 $11.9 $11.9 $11.9 $11.9 83,517.1
- Wastewater: Inflated $14.2 $14.5 $14.8 $15.1 $15.4 $15.7 $16.0 83,776.4
NEW RESIDENTIAL DEVELOPMENT
- Population Growth in New Units 135 135 115 118 118 - 118 118 1,985
REVENUE
- DC Receipts: Inflated $325.5 $332.0 $288.5 $302.0 $308.0 $314.2 $320.4 04,658.9
INTEREST
- Interest on Opening Balance ($94.8) ($82.6) ($69.4) ($57.9) ($45.0) ($31.1) ($16.1) ($869.6)
- Interest on In -year Transactions $5.4 $5.6 $4.8 $5.0 $5.1 $5.2 $5.3 (812.8)
TOTAL REVENUE $236.1 $254.9 $223.9 $249.1 $268.1 $288.3 $309.6 $3,776.5
CLOSING CASH BALANCE ($1,502.4) ($1,261.9) ($1,052.8) ($818.8) ($566.1) ($293.5) $0.0
2016 Adjusted Charge Per Capita $2,017.73 Allocation of Capital Program
Residential Sector 56.0%
Non - Residential Sector 44.0%
Rates for 2016
Inflation Rate 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
HEMSON
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APPENDIX C.3
TABLE 3
MUNICIPALITY OF KINCARDINE
CASHFLOW AND DETERMINATION OF DEVELOPMENT CHARGE
WASTEWATER
NON- RESIDENTIAL DEVELOPMENT CHARGE
(in $000)
WASTEWATER 2016 2017 2018 2019 2020 2021 2022 2023 2024
OPENING CASH BALANCE $0.0 $203.6 $51.5 ($108.8) $102.8 ($1,802.5) ($1,731.0) ($1,594.5) ($1,447.3)
2011 -2031 NON - RESIDENTIAL FUNDING REQUIREMENTS
- Wastewater: Non Inflated $9.4 $357.4 $357.4 $9.4 $1,927.0 $9.4 $9.4 $9.4 $9.4
- Wastewater: Inflated $9.4 $364.6 $371.9 $9.9 $2,085.9 $10.3 $10.5 $10.7 $11.0
NON - RESIDENTIAL SPACE GROWTH
- Growth in Square Metres 7,892 7,751 7,755 7,944 7,944 6,078 7,976 7,927 8,116
REVENUE
- DC Receipts: Inflated $209.4 $209.7 $214.1 $223.7 $228.1 $178.0 $238.3 $241.6 $252.3
INTEREST
- Interest on Opening Balance $0.0 $7.1 $1.8 ($6.0) $3.6 ($99.1) ($95.2) ($87.7) ($79.6)
- Interest on In -year Transactions $3.5 ($4.3) ($4.3) $3.7 ($51.1) $2.9 $4.0 $4.0 $4.2
TOTAL REVENUE $212.9 $212.6 $211.6 $221.5 $180.6 $81.8 $147.1 $157.9 $176.9
CLOSING CASH BALANCE $203.6 $51.5 ($108.8) $102.8 ($1,802.5) ($1,731.0) ($1,594.5) ($1,447.3) ($1,281.3)
WASTEWATER 2025 2026 2027 2028 2029 2030 2031 TOTAL
OPENING CASH BALANCE ($1,281.3) ($1,101.3) ($971.1) ($806.6) ($630.9) ($434.6) ($222.8)
2011 -2031 NON - RESIDENTIAL FUNDING REQUIREMENTS
- Wastewater: Non Inflated $9.4 $9.4 $9.4 $9.4 $9.4 $9.4 $9.4 $2,763.4
- Wastewater: Inflated $11.2 $11.4 $11.6 $11.9 $12.1 $12.3 $12.6 $2,967.2
NON - RESIDENTIAL SPACE GROWTH - - - - - - - -
- Growth in Square Metres 8,116 6,149 6,844 6,780 6,969 6,969 6,862 118,072
REVENUE
- DC Receipts: Inflated $257 $198.9 $225.8 $228.1 $239.2 $244.0 $245.0 $3,633.5
INTEREST
- Intereston Opening Balance ($70.5) ($60.6) ($53.4) ($44.4) ($34.7) ($23.9) ($12.3) (8654.8)
- Interest on In -year Transactions $4.3 $3.3 $3.7 $3.8 $4.0 $4.1 $4.1 ($10.0)
TOTAL REVENUE $191.1 $141.6 $176.1 $187.5 $208.5 $224.2 $236.8 $2,968.7
CLOSING CASH BALANCE ($1,101.3) ($971.1) ($806.6) ($630.9) ($434.6) ($222.8) $1.5
2016 Adjusted Charge Per Square Metre $26.53 Allocation of Capital Program
Residential Sector 56.0%
Non- Residential Sector 44.0%
Rates for 2016
Inflation Rate 2.0%
Interest Rate on Positive Balances 3.5%
Interest Rate on Negative Balances 5.5%
HEMSON
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APPENDIX D
RESERVE FUNDS
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APPENDIX D
DEVELOPMENT CHARGES RESERVE FUNDS
The DCA requires that a reserve fund be established for each service for which
development charges are collected. Table 1 presents the reserve fund balances that
are available to help fund the development- related capital costs identified in the
study. The closing balances of the development charges reserve funds as at December
31, 2015 are displayed in Table 1. All of the available reserve fund balances are
therefore accounted for in the study.
As shown on Table 1, the December 31, 2015 total reserve fund balance was
approximately $828,830. The balances for each service are deemed to be
" uncommitted" and have been treated appropriately in each of the cash flow
analyses. The application of the available monies in each of the reserve funds is
discussed in the appendix section related to each service.
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APPENDIX D
TABLE 1
MUNICIPALITY OF KINCARDINE
DEVELOPMENT CHARGE RESERVE FUND BALANCE BY ACCOUNT
YEAR ENDING DECEMBER 31, 2015
Reserve Fund 2016 Uncommitted
Service Balance as at Capital Reserve
Dec. 31, 2015 Budget Draws Funds
Airport $0.00 $0.00 $0.00
Cemetery $0.00 $0.00 $0.00
Parks And Recreation $177,969 $0.00 $177,969
Public Works & Municipal Fleet $0.00 $0.00 $0.00
Fire Services $0.00 $0.00 $0.00
General Government $0.00 $0.00 $0.00
Waste Management $0.00 $0.00 $0.00
Roads And Related $0.00 $0.00 $0.00
Water $245,282 $0.00 $245,282
Wastewater $405,579 $0.00 $405,579
Total Development Charge Reserves $828,829 $0 $828,829
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153
APPENDIX E
LONG -TERM CAPITAL AND OPERATING IMPACTS
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154
APPENDIX E
TABLE 1
MUNICIPALITY OF KINCARDINE
ESTIMATED NET OPERATING COST OF THE PROPOSED
DEVELOPMENT - RELATED CAPITAL PROGRAM
(in constant 2016 dollars)
Net Cost Estimated Operating Costs ($000)
(in 2016$) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Airport $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
- No Additional Operating Costs $0.00 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0,0 $0.0 $0.0
Cemetery $1.8 $1.8 $4.7 $4.7 $9.9 $9.9 $9.9 $9.9 $9.9 $9.9
- Provision for development - related capital works $0.03 per $1.00 of new $1.8 $1.8 $4.7 $4.7 $9.9 $9.9 $9.9 $9.9 $9.9 $9.9
inventory added
Parks And Recreation $0.0 $0.0 $0.0 $0.0 $120.0 $120.0 $120.0 $120.0 $120.0 $120.0
- Provision for development - related capital works $10.00 per sq.ft. of new $0.0 $0.0 $0.0 $0.0 $120.0 $120.0 $120.0 $120.0 $120.0 $120.0
Recreational Floorspace
Public Works & Municipal Fleet $0.0 $0.0 $0.0 $36.0 $36.0 $36.0 $36.0 $36.0 $36.0 $36.0
- Buildings, land and furnishings $0.10 per $1.00 of new $0.0 $0.0 $0.0 $36.0 $36.0 $36.0 $36.0 $36.0 $36.0 $36.0
infrastructure
Fire Services $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
- No additional operating costs $0.00 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0,0
• Waste Mangement $5.1 $10.2 $15.3 $20.4 $25.6 $30.8 $36.0 $41.2 $46.5 $51.8
- Development - related waste management services $100.00 per household $5.1 $10.20 $15.3 $20.4 $25.6 $30.8 $36.0 $41.2 $46.5 $51.8
Roads And Related $10.3 $20.4 $30.6 $40.8 $51.2 $616 $72.0 $82.4 $93.0 $103.6
- Development - Related Roads Infrastructure $200.00 per household $10.3 $20.4 $30.6 $40.8 $51.2 $61.6 $72.0 $82.4 $93.0 $103.6
TOTAL ESTIMATED OPERATING COSTS $17.2 $32.4 $50.6 $101.9 $242.7 $258.2 $273.9 $289.5 $305.4 $321.3
•
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APPENDIX E
TABLE 2 - PAGE 1
MUNICIPALITY OF KINCARDINE
SUMMARY OF TAX SUPPORTED FUNDING REQUIREMENTS
(in $000s)
Net Capital Cost of
Development - Related Projects 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL
AIRPORT
Total Net Cost (1) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Cost From Development Charges (2) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Cost From Non -DC Sources 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Discount Portion (3) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Available DC Reserves (4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Replacement & Benefit to Existing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- For Post 2025 Development (5) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
CEMETERY
Total Net Cost (1) 61.5 0.0 100.0 0.0 180.0 0.0 0.0 0.0 0.0 0.0 341.5
Net Cost From Development Charges (2) 2.8 0.0 4.5 0.0 8.1 0.0 0.0 0.0 0.0 0.0 15.4
Net Cost From Non -DC Sources 58.7 0.0 95.5 0.0 171.9 0.0 0.0 0.0 0.0 0.0 326.1
- Discount Portion (3) 0.3 0.0 0.5 0.0 0.9 0.0 0.0 0.0 0.0 0.0 1.7
- Available DC Reserves (4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Replacement & Benefit to Existing 58.4 0.0 95.0 0.0 171.0 0.0 0.0 0.0 0.0 0.0 324.4
- For Post 2025 Development (5) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
PARKS AND RECREATION
Total Net Cost (1) 0.0 0.0 700.0 125.0 1,020.0 0.0 0.0 0.0 0.0 0.0 1,845.0
Net Cost From Development Charges (2) 0.0 0.0 169.5 56.9 699.1 0.0 0.0 0.0 0.0 0.0 925.5
Net Cost From Non -DC Sources 0.0 0.0 530.5 68.1 320.9 0.0 0.0 0.0 0.0 0.0 919.5
- Discount Portion (3) 0.0 0.0 32.4 12.5 93.3 0.0 0.0 0.0 0.0 0.0 138.3
- Available DC Reserves (4) 0.0 0.0 122.4 55.6 0.0 0.0 0.0 0.0 0.0 0.0 178.0
- Replacement & Benefit to Existing 0.0 0.0 375.8 0.0 86.7 0.0 0.0 0.0 0.0 0.0 462.5
- For Post 2025 Development (5) 0.0 0.0 0.0 0.0 140.9 0.0 0.0 0.0 0.0 0.0 140.9
PUBLIC WORKS & MUNICIPAL FLEET
Total Net Cost (1) 0.0 0.0 170.0 580.0 0.0 0.0 0.0 0.0 0.0 0.0 750.0
Net Cost From Development Charges (2) 0.0 0.0 153.0 522.0 0.0 0.0 0.0 0.0 0.0 0.0 675.0
Net Cost From Non -DC Sources 0.0 0.0 17.0 58.0 0.0 0.0 0.0 0.0 0.0 0.0 75.0
- Discount Portion (3) 0.0 0.0 17.0 58.0 0.0 0.0 0.0 0.0 0.0 0.0 75.0
- Available DC Reserves (4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Replacement & Benefit to Existing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- For Post 2025 Development (5) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Notes: (1) For total development- related capital program see Appendix B and C
(2) Share of capital program to be funded from development charges if calculated rates are fully implemented
(3) Mandatory 10% reduction for applicable services
(4) Portion of development - related capital program identified as available DC reserves (to be funded from present Development Charge reserve fund balances).
(5) Post 2025 development - related net capital costs may be eligible for development charges in future DC by -laws, but interim financing of this share may be required
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APPENDIX E
TABLE 2 - PAGE 2
MUNICIPALITY OF KINCARDINE
SUMMARY OF TAX SUPPORTED FUNDING REQUIREMENTS
(in $000s)
Net Capital Cost of
Development - Related Projects 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL
FIRE SERVICES
Total Net Cost (1) 0.0 0.0 0.0 0.0 0.0 0.0 1,100.0 0.0 0.0 0.0 1,100.0
Net Cost From Development Charges (2) 0.0 0.0 0.0 0.0 0.0 0.0 440.0 0.0 0.0 0.0 440.0
Net Cost From Non -DC Sources 0.0 0.0 0.0 0.0 0.0 0.0 660.0 0.0 0.0 0.0 660.0
- Discount Portion (3) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Available DC Reserves (4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Replacement & Benefit to Existing 0.0 0.0 0.0 0.0 0.0 0.0 660.0 0.0 0.0 0.0 660.0
- For Post 2025 Development (5) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
WASTE MANGEMENT
Total Net Cost (1) 0.0 0.0 250.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 250.0
Net Cost From Development Charges (2) 0.0 0.0 26.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 26.0
Net Cost From Non -DC Sources 0.0 0.0 224.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 224.0
- Discount Portion (3) 0.0 0.0 2.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.9
- Available DC Reserves (4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Replacement & Benefit to Existing 0.0 0.0 221.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 221.2
- For Post 2025 Development (5) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
GENERAL GOVERNMENT
Total Net Cost (1) 50.0 25.0 0.0 40.0 0.0 77.5 0.0 0.0 0.0 0.0 192.5
Net Cost From Development Charges (2) 33.8 11.3 0.0 18.0 0.0 58.5 0.0 0.0 0.0 0.0 121.5
Net Cost From Non -DC Sources 16.3 13.8 0.0 22.0 0.0 19.0 0.0 0.0 0.0 0.0 71.0
- Discount Portion (3) 3.8 1.3 0.0 2.0 0.0 6.5 0.0 0.0 0.0 0.0 13.5
- Available DC Reserves (4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Replacement & Benefit to Existing 12.5 12.5 0.0 20.0 0.0 12.5 0.0 0.0 0.0 0.0 57.5
- For Post 2025 Development (5) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
ROADS AND RELATED
Total Net Cost (1) 50.0 650.0 3,000.0 0.0 0.0 0.0 800.0 0.0 0.0 0.0 4,500.0
Net Cost From Development Charges (2) 25.0 325.0 750.0 0.0 0.0 0.0 400.0 0.0 0.0 0.0 1,500.0
Net Cost From Non -DC Sources 25.0 325.0 2,250.0 0.0 0.0 0.0 400.0 0.0 0.0 0.0 3,000.0
- Discount Portion (3) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Available DC Reserves (4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- Replacement & Benefit to Existing 25.0 325.0 2,250.0 0.0 0.0 0.0 400.0 0.0 0.0 0.0 3,000.0
- For Post 2025 Development (5) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
TOTAL MUNICIPAL SERVICES
Total Net Cost (1) 161.5 675.0 4,220.0 745.0 1,200.0 77.5 1,900.0 0.0 0.0 0.0 8,979.0
Net Cost From Development Charges (2) 61.5 336.3 1,102.9 596.9 707.2 58.5 840.0 0.0 0.0 0.0 3,703.3
Net Cost From Non -DC Sources 100.0 338.8 3,117.1 148.1 492.8 19.0 1,060.0 0.0 0.0 0.0 5,275.7
- Discount Portion (3) 4.1 1.3 52.8 72.5 94.2 6.5 0.0 0.0 0.0 0.0 231.3
- Available DC Reserves (4) 0.0 0.0 122.4 55.6 0.0 0.0 0.0 0.0 0.0 0.0 178.0
- Replacement & Benefit to Existing 95.9 337.5 2,941.9 20.0 257.7 12.5 1,060.0 0.0 0.0 0.0 4,725.5
- For Post 2025 Development (5) 0.0 0.0 0.0 0.0 140.9 0.0 0.0 0.0 0.0 0.0 140.9
Notes: (1) For total development- related capital program see Appendix B and C
(2) Share of capital program to be funded from development charges if calculated rates are fully implemented
(3) Mandatory 10% reduction for applicable services
(4) Portion of development - related capital program identified as available DC reserves (to be funded from present Development Charge reserve fund balances).
(5) Post 2025 development - related net capital costs may be eligible for development charges in future DC by -laws, but interim financing of this share may be required
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157
APPENDIX F
ASSET MANAGEMENT PLAN
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158
APPENDIX F
ASSET MANAGEMENT PLAN
The recently enacted changes to the Development Charges Actrequire the completion
of an Asset Management Plan before the passing of a development charges by -law. The
primary purpose of the Asset Management Plan is to demonstrate that all assets
proposed to be funded under the development charges by -law are financially sustainable
over their full life cycle.
Asset Types
Summaries of the future municipal -owned assets and estimated useful life assumptions
considered under the 2016 Development Charges Study are outlined within Table 1 for
general services and Table 2 for engineered services. These assumptions were primarily
derived from the Municipality's document PSAB 3150 Policies and Procedures, last
revised in 2010.
Although all capital assets considered in the 2016 Development Charges Study have
been identified, not all assets will necessitate future replacement or ongoing
maintenance activities. These exceptions include:
• Works identified that represent one -time expenditures or are temporary in
nature. Such assets are identified as "not a long -term asset" in the table; and
• Projects such as development- related studies or infrastructure needs studies,
which do not relate to the emplacement of a tangible capital asset. Such
projects are identified as "not infrastructure" in the tables.
It should be noted that the capital cost estimates prepared for each of the identified
projects include grouped costs of various individual elements, which, as a stand -alone
item, may have their own useful life. For example, new buildings include elements such
as HVAC, structural elements, and roofs, among others. Accordingly, the average
useful life assumptions noted below are applicable to all project components.
HEMSON
159
Table 1 — Summary of General Services Assets Considered
Capital Project Description Estimated Useful Life
Fire Vehicles 20 years
Surface Parking Addition 15 years
Community Centre Building 40 years
Replacement/Expansion
Community Centre Design / Needs Not infrastructure
Assessment
Picnic Shelter 35 years
Cemetery Niches 40 years
Various Outdoor Recreation Projects 40 years
Roads — Cemetery 40 years
Sidewalk Plow 10 years
Single Axel Plow 15 years
Bay Addition 40 years
Internal Driveways and Receiving Areas 40 years
Expansion / Improvement
Table 2 — Summary of Engineered Services Assets Considered
Capital Project Description Estimated Useful Life
Road Reconstruction 50 years
Sidewalk Reconstruction 40 years
Intersections 25 years
Intersection Improvement Needs Study Not infrastructure
Water Storage 70 years
Trunk Sewer 70 years
Pumping Station 70 years
Additional Sewage Capacity 70 years
Unidentified wastewater projects Not a long -term asset
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160
Annual Provision
When assets require rehabilitation or are due for replacement, the source of funds is
limited to reserves or contributions from operating. Capital expenditures to carry out
the rehabilitation and replacement of aging infrastructure are not development - related,
and therefore, are not eligible for funding through development charge revenues or
other developer contributions.
Based on the information obtained from municipal staff regarding useful life
assumptions and the capital cost of acquiring and /or emplacing each asset, a provision
for infrastructure replacement has been calculated. Provisions for infrastructure
replacement are initially calculated for each asset based on their useful life and the
anticipated cost of replacement. The aggregate of all individual provisions form the
required annual capital provision. In calculating the annual provisions, a number of
assumptions are made to account for inflation (2.0 per cent) and interest (3.5 per cent).
Consistent with the requirements of the Development Charges Act, only the assets that
are proposed to be funded under the development charges by -law have been included
in this analysis. As a result, the total calculated annual provision has been netted down
based on the following considerations:
1. Funding shares for which the developer is responsible for emplacing the asset or
shares which the Municipality anticipates receiving funding from other sources,
such as the Province;
2. The replacement of existing infrastructure or benefit -to- existing development;
and
3. Infrastructure as it relates to development occurring outside of the respective
planning periods (post 2025 for general services and 2031 for engineered
services).
Figure 1 provides an overview of the capital provisions required to replace the capital
infrastructure proposed to be funded under the development charges by -law. It should
be noted that for all engineered works, only the costs to reconstruct the asset were
included in the annual provision. Specifically related to roads, regular road
maintenance and rehabilitation expenditures are assumed to be accounted for through:
• The calculation of the replacement and benefit -to- existing share components
for each road;
• The Municipality's existing asset management practices; and
HEMSON
161
• The long -term operating and capital cost impact analysis identified in Appendix
E of the study.
Figure 1 illustrates that, by 2025, the Municipality will need to fund an additional
$221,200 per annum (including $130,270 tax supported and $90,930 rate supported) in
order to properly fund the full life -cycle costs of the new assets supported under this
development charges by -law. The calculated tax supported life -cycle funding
requirement of $221,200 equates to 0.85 per cent of the Municipality's 2015 total own
source revenues of $15.35 million (including a tax levy of $13.19 million and user
fees /charges of $2.16 million). The calculated utility rate support life -cycle funding
requirement of $90,930 represents 2.03 per cent of the Municipality's total water and
sewer revenues of $4.47 million.
The calculated annual funding provision should be considered within the context of
the Municipality's projected growth. Over the next ten years (to 2025) the Municipality
is projecting an increase of approximately 520 total private dwelling units, representing
a nine per cent increase over the existing (2015) base, as well as nearly 1,030 new
employees. This growth will have the effect of increasing the overall assessment base
and additional user fee, utility rate and charge revenues to offset the capital asset
provisions required to replace the infrastructure proposed to be funded under the
development charges by -law. The collection of these funds is intended to be allocated
to reserves for the future replacement of these assets. Table 3 provides a summary of the
calculated annual provision by asset category in 2025.
The calculated annual provisions identified in Figure 1 are considered to be financially
sustainable, as it is expected that the increased capital asset management requirements
can be absorbed by the tax and user base over the long -term.
HEMSON
162
Figure 1: Annual Capital Provision Schedule: 2016 - 2025
• Fire Services • Parks and Recreation • Cemetery • Public Works
NI Waste Management • Road Replacement • Water • Wastewater
$250,000
$200,000
$150,000
$100,000
$30,000
$-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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163
Table 3
Calculated Annual Provision by 2025
Tax Supported Assets
Fire Services $25,156
Parks and Recreation $38,971
Cemetery $414
Public Works $23,583
Waster Management . $5,401
Road Replacement $36,741
Sub -total Tax Supported Assets $130,266
Utility Rate Supported Assets
Water $ -
Wastewater $90,930
Sub -total Utility Rate Supported Assets $90,930
Total 2025 Provision $221,200
HEMSON
164
APPENDIX G
DRAFT 2016 DC BY -LAW
HEMSON
DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS
AND COUNCIL CONSIDERATION
BY -LAW NO. XXXX
OF
THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
A by -law to establish development charges
for the Corporation of the Municipality of Kincardine
WHEREAS subsection 2(1) of the Development Charges Act, 1997 c. 27 (hereinafter
called "the Act ") provides that the council of a municipality may pass By -laws for the
imposition of development charges against land for increased capital costs required
because of the need for services arising from development in the area to which the
by -law applies;
AND WHEREAS the Council of The Corporation Of the Municipality of Kincardine
( "Municipality of Kincardine ") has given Notice in accordance with Section 12 of the
Development Charges Act, 1997, of its intention pass - a'by-law under Section 2 of
the said Act;
AND WHEREAS the Council of the Municipality of Kincardine has heard all persons
who applied to be heard no matter whetter in objection to, or in support of, the
development charge proposal at meeting held on June X, 2016;
AND WHEREAS the Council of the Municipality of Kincardine had before it a report
entitled Development Charges Background Study dated May X, 2016 (the "Study ")
prepared by Hemson Consulting Ltd., wherein it is indicated that the development of
any land within the Municipality of Kincardine will increase the need for services as
defined herein;
AND WHEREAS the Council of the Municipality of Kincardine on July XX, 2016
approved the applicable Development Charges Background Study, dated May XX,
2016, in which certain recommendations were made relating to the establishment of a
development charge policy for the Municipality of Kincardine pursuant to the
Development Charges Act, 1997;
AND WHEREAS by resolution adopted by Council of The Corporation of the
Municipality of Kincardine on July XX, 2016, Council determined that the increase in
the need for services attributable to the anticipated development as contemplated in
the Development Charges Background Study dated May XX, 2016, as amended
including any capital costs, will be met by updating the capital budget and forecast for
the Municipality, where appropriate.
DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS
AND COUNCIL CONSIDERATION
AND WHEREAS by Resolution adopted by Council on July XX, 2016, Council
approved the Study and determined that no further public meetings were required
under Section 12 of the Act;
AND WHEREAS by resolution adopted by Council of The Corporation of the
Municipality of Kincardine on July XX, 2016, Council determined that the future excess
capacity identified in the Development Charges Background Study dated May XX,
2016, shall be paid for by the development charges contemplated in the said
development Charges Background Study, or other similar charges;
NOW THEREFORE THE COUNCIL OF THE MUNICIPALITY OF KINCARDINE
ENACTS AS FOLLOWS:
DEFINITIONS
1. In this by -law,
(1) "Act" means the Development ChargesAct, 1997, c. 27;
(2) "Affordable Housing" means d ousing whit% is or is intended to be
offered primarily to persons or families of low income that have received
funding from the Federal, ovincial or County levels of government;
(3) "Agricultural use "means a bona fide farming operation;
(4) "Apartme dwelling" jeans any dwelling unit within a building
containing more than four dwelling units where the units are connected
by an interior corridor;
(5) "Board of education" means a board defined in s.s. 1(1) of the Education
Act;
(6) "Building" means a structure consisting of a wall, roof, and floor or any
of them or a structural system servicing the function thereof, and
includes, but is not limited to, an above grade storage tank, airsupported
structures and industrial tents
(7) "Bona Fide Farm Use" means the proposed development will qualify as
a farm business operating with a valid Farm Business Registration
Number issued by the Ontario Ministry of Agriculture, Food and Rural
Affairs and be assessed in the Farmland Realty Tax Class by the
Municipal Property Assessment Corporation;
DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS
AND COUNCIL CONSIDERATION
(8) "Building Code Act" means the Building Code Act, R.S.O. 1992, as
amended;
(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, lease, construct or improve facilities including,
A la =e
(i) rolling stock with an a tiniated useful life of seven years
or more,
u furniture and equipment, ( ) q pant, other than computer equipment,
and
material acquired for circulation, reference or
n nformat on purposes by a library board as defined in the
Public ribfaries Act, 1984, S.O. 1984, c. 57, and
(e) to undertake studies in connection with any of the matters
referred tc in clauses (a) to (d);
(f) to complete the development charge background study under
Section 10 of the Act;
(g) as interest on money borrowed to pay for costs in (a) to (d);
required for provision of services designated in this by -law within or
outside the municipality.
(10) "Council" means the Council of The Corporation of the Municipality of
Kincardine;
(11) "Development" means any activity or proposed activity in respect of land
that requires one or more of the actions referred to in section 7 of this
DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS
AND COUNCIL CONSIDERATION
by -law and including the redevelopment of land or the redevelopment,
expansion, extension or alteration of a use, building or structure except
interior alterations to an existing building or structure which do not
change or intensify the use of land;
(12) "Development charge" means a charge imposed pursuant to this By-
law;
(13) "Dwelling unit" means a room or suite of rooms used, or designed or
intended for use by, one person or persons living together, in which
culinary and sanitary facilities are provided for the exclusive use of such
person or persons;
(14) "Farm building" means a building or structure actually used as part of or
in connection with a bona fide farming operation and includes barns,
silos and other buildings or structu ancillary to a bona fide farming
operation, but excluding a residential use;
(15) "Grade" means the average leftIotfinished =, ground adjoining a building
or structure at all exterior walls,
(16) "Gross floor area " ans the surrotal of the total areas of all floors in
a building or structure whether at above or below grade measured
IY�
between the exterior fa of the exterior walls of a the building or
structure or fromhe centre line of a common wall separating two uses
or from the outside edge of a floor where the outside edge of the floor
does not meet 'an exterior or common wall, and
(a) includes the floor area of a mezzanine atrium or air supported
structure and the space occupied by interior wall partitions; and
(b) where a building or structure does not have any walls the gross floor
area of the building or structure shall be the total of the area of all floors
including the ground floor that are directly beneath the roof of the
building or structure.
(17) "Industrial Building" means a building used for or in connection with,
(a) manufacturing, producing, processing, storing or distributing
something,
(b) research or development in connection with manufacturing,
producing or processing something,
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AND COUNCIL CONSIDERATION
(c) retail sales by a manufacturer, producer or processor of something
they manufactured, produced or processed, if the retail sales are at
the site where the manufacturing, production, or processing takes
place,
(d) office or administrative purposes, if they are,
(i) carried out with respect to manufacturing, producing,
processing, storage or distributing of something, and
(ii) in or attached to the building or structure used for that
manufacturing, producing, processing, storage or
distribution.
(18) "Institution" means any land, building, structure, or part thereof, used
by any organization, group, corporation or association, for the
promotion of charitable, educational, religious or benevolent objectives
and not for profit or gain;
(19) "Local board" means a public utility commission, public library board,
local board of health, or any,oter board, commission, committee or
body or local authority established or,exercising any power or authority
under any general or special Act with respect to any of the affairs or
purposes of the municipality r any part or parts thereof;
(20) "Local services " -r. tar those services or facilities which are under the
jurisdiction of the ,municrpalh y and are related to a plan of subdivision or
within thearea to which the plan relates, required as a condition of
approval under s 5'of the Planning Act, or as a condition of approval
under s.53 of the Planning Act;
(21) "Municipality" means The Corporation of the Municipality of Kincardine;
(22) "Multiple dwelling" means all dwellings other than single detached
dwellings, semi - detached dwellings, and apartment dwellings;
(23) "Non- residential uses" means a building or structure used for other than
a residential use;
(24) "Official plan" means the Official Plan of the Municipality of Kincardine
and any amendments thereto;
(25) "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;
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(26) "Place of worship" means a building or structure, or part thereof, that is
exempt from taxation as a place of worship pursuant to paragraph 3 of
the Assessment Act, R.S.O. 1990, c. A. 31, as amended, or successor
legislation;
(27) "Planning Act" means the Planning Act, 1990, R.S.O. 1990, c.1, as
amended;
(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 a residential use to a non - residential
use or from a non - residential use to a residential use, or changing a
building or structure from one form of residential use to another form of
residential use or from one form of non - residential use to another form
of non - residential use;
(29) "Regulation" means any regulation made pursuant to the Act;
(30) "Residential uses" means, lands, buildings or structures or portions
thereof used, or designed rinten d'for use as a home or residence
of one or more individuals, and shalt include a single detached dwelling,
a semi- detache&$weing, a' ; multiple dwelling, an apartment dwelling,
and the residential Qfiiotri o mixed -use building or structure;
(31) "Semi - detached dwelling" means a building divided vertically into two
dwelling units each "of which has a separate entrance and access to
grade;
(32) "Service" means services set out in Schedule "A" to this By -law, and
"services" shall have a corresponding meaning;
(33) "Single detached dwelling" means a completely detached building
containing only one dwelling unit.
DESIGNATION OF SERVICE
2. It is hereby declared by the Council of the Municipality that all development
and redevelopment of land within the Municipality will increase the need for
services.
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3. The categories of service for which development charges are imposed under
this By -law are as follows:
a) Cemetery
b) Parks and Recreation
c) Public Works & Municipal Fleet
d) Fire Services
e) Waste Management
f) General Government
g) Roads and Related
h) Water
i) Wastewater
CALCULATION OF DEVELOPMENT CHARGES
4. (1) Subject to the provisions of this By-J04 development charges against
land in the municipality shall be imposed, calculated and collected in
accordance with the base rates s out inSchedules B" and "C ", which
relate to the services set out `in%chedule "A".
(2) The development charge �n ith respect to the use of any land, buildings
r 2 �
or structures shallbeecalculated as *`follows:
(a) in the:case of resfd ntial development or redevelopment, or a
restdential poqjon of a mixed -use development or
redevelopment , the sum of the product of the number of dwelling
units of each type multiplied by the corresponding total amount
for such dwelling unit type, as set out in Schedule "B ";
(b) in the case of non - residential development or redevelopment, or
a non - residential portion of a mixed -use development or
redevelopment, the development charge shall be the gross floor
area of such area multiplied by the corresponding total dollar
amount per square metre of gross floor area, as set out in
Schedule "C ".
(3) Council hereby determines that the development or redevelopment of
land, buildings or structures for residential and non - residential uses will
require the provision, enlargement or expansion of the services
referenced in Schedule "A".
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PHASE -IN OF DEVELOPMENT CHARGES AND TRANSITION PROVISIONS
5. (1) The development charges imposed pursuant to this by -law are not
being phased in and are payable in full, subject to the exemptions and
indexing provisions herein, from the effective date of this by -law.
APPLICABLE LANDS
6. (1) Subject to Sections 5 and 6, this by -law applies to all lands in the
municipality, whether or not the land or use is exempt from taxation
under Section 3 of the Assessment Act, R.S.O. 1990, c.A.31.
(2) This by -law shall not apply to land that is owned by and used for the
purposes of:
(a) a board of education
(b) any municipality or local board thereof;
(c) non - residential development dueloprridtpt that is smaller than 232 square
metres in gross frqbt,area and is located in the Kincardine
Community ltn rovementProject Area referenced in By -law
2007 -347, s gmendgl
(d) affordable'VusiN developments located in the Municipality,
provided that
the development has received Federal, Provincial or
County government funding or subsidies for the provision
of affordable housing development; and
ii. the development is intended for persons of low or modest
incomes and that the dwelling units are being made
available at values that are initially and will continue to be
below current market levels in the Municipality;
(d) any non - residential industrial development;
(e) any non - residential institutional development;
(f) non - residential farm buildings;
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(g) major office development;
(h) current developments that have a Subdivision Agreement in
place and are required to pay the current capital and reserve
charge for water and wastewater.
RULES WITH RESPECT TO EXEMPTIONS FOR INTENSIFICATION OF EXISTING
HOUSING
7. (1) Notwithstanding Section 4 above, no development charge shall be
imposed with respect to developments or portions of developments as
follows:
(a) the enlargement of an existing residential dwelling unit;
(b) the creation of one or two additional residential dwelling units in
an existing single detached dwelling where the total gross floor
area of each additional unit doe - not exceed the gross floor area
of the existing dwelling unit,'
(c) the creation of one , add ional dwelling unit in any other existing
residential building provided 'the gross floor area of the additional
unit does not exceed th,e smallest existing dwelling unit already
in the blldi
(2) Notwithstanding subsection 7(1)(b), development charges shall be
calculated and ccollected in accordance with Schedule "B" where the
total residential gross floor area of the additional one or two dwelling
units is greater than the total gross floor area of the existing single
detached dwelling unit.
(3) Notwithstanding subsection 7(1)(c), development charges shall be
calculated and collected in accordance with Schedule "B" where the
additional dwelling unit has a residential gross floor area greater than,
(a) in the case of semi - detached house or multiple dwelling, the
gross floor area of the smallest existing dwelling unit, and
(b) in the case of any other residential building, the residential gross
floor area of the smallest existing dwelling unit.
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DEVELOPMENT CHARGES IMPOSED
8. (1) Subject to subsection (2), development charges shall be calculated and
collected in accordance with the provisions of this by -law and be
imposed on land to be developed for residential and non - residential use,
where, the development requires:
(i) the passing of a zoning by -law or an amendment thereto under
Section 34 of the Planning Act, R.S.O. 1990, c.P. 13;
(ii) the approval of a minor variance under Section 45 of the
Planning Act, R.S.O. 1990, c.P.13;
(iii) a conveyance of land to which a by -law passed under subsection
49(7) of the Planning Act, R. S.O. 1990, c.P.13 applies;
(iv) the approval of a plan of subfiision under Section 51 of the
Planning Act, R.S.O. 1990 C.P. 1 ,
r
(v) a consent under Section 3 of the Planning Act, R.S.O. 1990,
c.P. 13;
(vi) the approval of a .description under Section 50 of the
Condomin,urn, Act, :R.S.0 1980, c.84; or
(vii) the issuing of- a permit under the Building Code Act, in relation to
a building t or stru
(2) Subsection (1) shall not apply in respect to:
(a) local services installed or paid for by the owner within a plan of
subdivision or within the area to which the plan relates, as a
condition of approval under Section 51 of the Planning Act,
R.S.O. 1990, c.P. 13;
(b) local services installed or paid for by the owner as a condition of
approval under Section 53 of the Planning Act, R.S.O. 1990, c.P.
13.
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AND COUNCIL CONSIDERATION
LOCAL SERVICE INSTALLATION
9. Nothing in this by -law prevents Council from requiring, as a condition of an
agreement under Section 51 or 53 of the Planning Act that the owner, at his or
her own expense, shall install or pay for such local services, within the Plan of
Subdivision or within the area to which the plan relates, as Council may require.
MULTIPLE CHARGES
10. (1) Where two or more of the actions described in subsection 8(1) are
required before land to which a development charge applies can be
developed, only one development charge shall be calculated and
collected in accordance with the provisions of this by -law.
(2) Notwithstanding subsection (1), if two or more of the actions described
in subsection 8(1) occur at different times, and if the subsequent action
has the effect of increasing the ne`edfor municipal services as set out
in Schedule "A ", an additional development charge on the additional
residential units and non- residentiat4loor area, shall be calculated and
collected in accordance with the provisions of this by -law.
SERVICES IN LIEU
11. (1) Council may authorize an owner, through an agreement under Section
38 of the Act, to Esubstitute such part of the development charge
applicable to „ the owner's development as may be specified in the
agreement, by : the -provision at the sole expense of the owner, of
services in lieu. Such agreement shall further specify that where the
owner provides services in lieu in accordance with the agreement,
Council shall give to the owner a credit against the development charge
in accordance with the agreement provisions and the provisions of
Section 39 of the Act, equal to the reasonable cost to the owner of
providing the services in lieu. In no case shall the agreement provide
for a credit which exceeds the total development charge payable by an
owner to the municipality in respect of the development to which the
agreement relates.
(2) In any agreement under subsection 11(1), Council may also give a
further credit to the owner equal to the reasonable cost of providing
services in addition to, or of a greater size or capacity, than would be
required under this by -law.
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(3) The credit provided for in subsection (2) shall not be charged to any
development charge reserve fund.
RULES WITH RESPECT TO RE- DEVELOPMENT
12. In the case of the demolition of all or part of a residential or non - residential
building or structure:
(1) a credit shall be allowed, provided that the land was improved by
occupied structures within the five years prior to the issuance of the
building permit, and the building permit has been issued for the
development or redevelopment within five years from the date the
demolition permit has been issued; and
(2) if a development or redevelopment involves the demolition of and
replacement of a building or structure or the conversion from one
principal use to another, a credit sh allowed equivalent to
(a) the number of dwelling units ciemoli ed /converted multiplied by
the applicable residential development charge in place at the
time the development th payable, and /or
(b) the gross54floo area of the building demolished /converted
multiplied by the urrent non - residential development charge in
place at theitieih e development charge is payable.
�� ee
13. A credit can, in no case, exceed the amount of the development charge that
rte"
would otherwise be payable, and no credit is available if the existing land use
is exempt under this by -law.
TIMING OF CALCULATION AND PAYMENT
14. (1) Development charges shall be calculated and payable in full in money
or by provision of services as may be agreed upon, or by credit granted
and defined by various references in the Development Charges Act, on
the date that the first building permit is issued in relation to a building or
structure on land to which a development charge applies.
(2) Where development charges apply to land in relation to which a building
permit is required, the building permit shall not be issued until the
development charge has been paid in full.
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AND COUNCIL CONSIDERATION
(3) Notwithstanding subsection (1), the development charge shall be
payable with respect to an approval of a plan of subdivision under
Section 51 or the Planning Act immediately upon entering into an
agreement and with respect to a consent under Section 53 of the
Planning Act, immediately upon entering into a consent agreement and
prior to final approval of the consent.
RESERVE FUNDS
15. (1) Monies received from payment of development charges under this by-
law shall be maintained in separate reserve funds as per the service set
out in Schedule "A ".
(2) Monies received for the payment of development charges shall be used
only in accordance with the provisions of Section 35 of the Act.
(3) Where any development charge, Or part thereof, remains unpaid after
the due date, the amount unpaid shall beadded to the tax roll and shall
be collected as taxes.
(4) Where any unpaid developent„chges are collected as taxes under
subsection (3), they monies so ;collected shall be credited to the
development ch e reserve funds referred to in subsection (1).
(5) The Treasurer of the r`nnicipality shall, in each year, furnish to council
a statement tn resp ct Of the reserve funds established hereunder for
the prior year, containing the information set out in section 43 of the Act
and section 12 of'O.Reg. 82/98.
BY -LAW AMENDMENT OR APPEAL
16. (1) Where this by -law or any development charge prescribed thereunder is
amended or repealed either by order of the Ontario Municipal Board or
by resolution of the Municipal Council, the Municipal Treasurer shall
calculate forthwith the amount of any overpayment to be refunded as a
result of said amendment or repeal.
(2) Refunds that are required to be paid under subsection 16(1) shall be
paid with interest to be calculated as follows:
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AND COUNCIL CONSIDERATION
(a) Interest shall be calculated from the date on which the
overpayment was collected to the date on which the refund is
paid;
(b) The Bank of Canada interest rate in effect on the date of
enactment of this by -law shall be used.
(3) Refunds that are required to be paid under subsection 16(1) shall
include the interest owed under this section.
BY -LAW INDEXING
17. The development charges set out in Schedules "B" and "C" to this by -law shall
be adjusted annually, as of January 1, 2017, without amendment to this by -law,
in accordance with the most recent twelve -month change in the Statistics
Canada Quarterly, "Construction Price Statistics ", Catalogue Number 62 -007.
SEVERABILITY
18. In the event any provision, or part thereat, of this by -law is found by a court of
competent jurisdiction to be ultra yr es, such; provision, or part thereof, shall be
deemed to be severed, and the remain,>g portion of such provision and all
other provisions of this by lawshall remain in full force and effect.
HEADINGS FOR REFERENCE ONLY
19. The headings inserted in this by -law are for convenience of reference only and
shall not affect the construction or interpretation of this by -law.
BY -LAW REGISTRATION
20. A certified copy of this by -law may be registered on title to any land to which
this by -law applies.
BY -LAW ADMINISTRATION
21. This by -law shall be administered by the Municipal Treasurer.
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AND COUNCIL CONSIDERATION
SCHEDULES TO THE BY -LAW
22. The following Schedules to this by -law form an integral part of this by -law:
Schedule A - Designated Municipal Services Under this By -Law
Schedule B - Schedule of Residential Development Charges
Schedule C - Schedule of Non - Residential Development Charges
DATE BY -LAW EFFECTIVE
23. This By -law shall come into force and effect on XX, 2016.
DATE BY -LAW EXPIRES
24. This By -law expires five years after the day on which it comes into force.
SHORT TITLE
25. This by -law may be cited as the , `Municipality of Kincardine Development
Charge By -law, 2016"
By -law read a first, second and ark time, finally enacted this XXth day of July,
2016.
Mayor, Municipality of Kincardine
Clerk, Municipality of Kincardine
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AND COUNCIL CONSIDERATION
SCHEDULE "A"
TO BY -LAW NO. XXXX
DESIGNATED MUNICIPAL SERVICES UNDER THIS BY -LAW
1. Cemetery
2. Parks and Recreation
3. Public Works & Municipal Fleet
4. Fire Services
5. Waste Management
6. General Government
7. Roads & Related
8. Water
9. Wastewater
fx �ti> A
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AND COUNCIL CONSIDERATION
SCHEDULE "B"
TO BY -LAW NO. XXXX
SCHEDULE OF RESIDENTIAL DEVELOPMENT CHARGES
Residential Charge By Unit Type
Service Singles & Rows & Other
Semis Multiples Apartments
Cemetery $38 $26 $20
Parks And Recreation $2,213 $1,505 $1,129
Public Works & Municipal Fleet $929 $632 $474
Fire Services $562 $383 $287
Waste Management $67 $45 $34
General Government $165 $112 $84
Subtotal General Services $3,974 $2,703 $2,028
Roads And Related $1,452 $988 $741
Water $2,250 $1,531 $1,148
Wastewater $5,932 $4,035 $3,027
Subtotal Engineered Services $9,634 $6,554 $4,916
TOTAL CHARGE PER UNIT l $13,608 $9,257 $6,944
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SCHEDULE "C"
TO BY -LAW NO. XXXX
SCHEDULE OF NON - RESIDENTIAL DEVELOPMENT CHARGES
Charge per
Service Square Metre of
Gross Floor
Area
Cemetery $0.00
Parks And Recreation $0.00
Public Works & Municipal Fleet $4.21
Fire Services $2.55
Waste Management $0.00
General Government $0.75
Subtotal General Services $7.51
Roads And Related $6.50
Water $10.09
Wastewater $26.53
Subtotal Engineered Services $43.12
TOTAL CHARGE PER SQUARE METRE $50.63
,II