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HomeMy WebLinkAbout16 080 Municipality of Kincardine Development Charges By-law 2016 THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE � 1 r / • �W��'C 1 PC LPALITy OF K \NCP � \ �� , 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; • Page 2 of 19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 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, Page 3 of 19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 (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 Page 4of19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 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; Page 5 of 19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 (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; Page 6 of 19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 (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 Page 7 of 19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 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; Page 8 of 19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 (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; Page 9 of 19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 (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, Page 10 of 19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 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. Page 11 of 19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 (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 Page 12 of 19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 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 Page 13 of 19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 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 • • • Page 14 of 19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 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 • • Page 15 of 19 Municipality of Kincardine Development Charges By -law, 2016 By -law No. 2016 - 080 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. HEMSON 6 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: HEMSON 7 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 HEMSON 8 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. HEMSON 9 • 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. HEMSON 10 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. HEMSON 11 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. HEMSON 12 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. HEMSON 13 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. HEMSON 14 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, HEMSON 15 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. HEMSON 16 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. HEMSON 17 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. HEMSON 18 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. HEMSON 19 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 HEMSON 20 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. HEMSON 21 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 HEMSON 22 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. HEMSON 23 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 HEMSON 24 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 32 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 33 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 34 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 HEMSON 42 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. HEMSON 43 APPENDIX A DEVELOPMENT FORECAST HEMSON 44 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 HEMSON 45 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 HEMSON 46 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. HEMSON • 47 • 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 HEMSON 48 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. HEMSON 49 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. HEMSON 50 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 HEMSON 51 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 HEMSON 52 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 l HEMSON 53 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. HEMSON 54 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 HEMSON 55 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 HEMSON 56 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 HEMSON 57 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 HEMS ON 58 APPENDIX B GENERAL SERVICES TECHNICAL APPENDIX HEMSON 59 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 HEMSON 60 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. HEMSON 61 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- HEMSON 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. HEMSON 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. HEMSON 64 APPENDIX B.1 AIRPORT HEMSON 65 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 $1.76 million to be brought forward to the development charges calculation. TABLE 2 2016 - 2025 DEVELOPMENT - RELATED CAPITAL PROGRAM & CALCULATION OF THE UNADJUSTED DEVELOPMENT CHARGE Since the 2011, the Municipality has undertaken a number of development- related capital projects related to the airport that were identified in the previous development charges background study. As a result of these completed works, the Municipality has not identified any new development - related capital projects over the 2016 -2025 planning period. However, the Municipality will continue to review HEMSON 66 the increase in need for airport services and the related capital projects in subsequent development charge background studies. As no development - related costs are identified for the service, there is no development charge proposed for Airport Services in the study. HEMS ON 67 APPENDIX B.1 TABLE I - PAGE 1 MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS AIRPORT # of Square Feet UNIT COST BUILDINGS 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($/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 HEMSON 68 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 HEMSON 69 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 HEMSON 70 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% HEMSON 71 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% HEMSON 72 APPENDIX B.2 CEMETERY HEMSON 73 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. HEMSON 74 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 $0.00 HEMSON 75 APPENDIX B.2 TABLE I - PAGE 1 MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS CEMETERY BUILDINGS # of Square Feet UNIT COST 2006 2007 2008 1 2009 2010 2011 2012 2013 2014 2015 ($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 $209.4 HEMSON 76 APPENDIX B.2 TABLE 1 - PAGE 2 MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS CEMETERY LAND AND IMPROVEMENTS # of Hectares UNIT COST Cemetery Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /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 $219.6 HEMSON 77 APPENDIX B.2 TABLE 1 - PAGE 3 MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS CEMETERY ROADS Total Value of Roads ($) 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 HEMSON 78 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 $8,500 i HEMSON 87 APPENDIX B.3 TABLE 1 - PAGE 3 MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS PARKS AND RECREATION PARKLAND DEVELOPMENT Park Name Continued # of Hectares UNIT COST 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /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 HEMSON 88 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 $1,555.8 HEMSON 89 APPENDIX B.3 TABLE 1 - PAGE S MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS PARKS AND RECREATION PARK FACILITIES Tennis Courts # of Courts UNIT COST Park Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /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 $474.6 HEMSON ■ 90 APPENDIX B.3 TABLE 1 - PAGE 6 MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS PARKS AND RECREATION PARK FACILITIES Skateboard Parks # of Parks UNIT COST Park Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($/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 $279.3 Note: Splash pad was opened in July 2015 to the public, therefore the inventory only reflects 50% of the complex in 2015 HEMSON 91 APPENDIX B.3 TABLE 1 - PAGE 7 MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS PARKS AND RECREATION PARKS BUILDINGS Outdoor Buildings # of Square Feet UNIT COST Facility Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /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 HEMSON 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 HEMSON 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. HEMSON 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% HEMSON 104 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% HEMSON 105 APPENDIX B.5 FIRE PROTECTION HEMSON 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 $2.55 HEMSON • 108 APPENDIX B.5 TABLE 1 - PAGE 1 MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS FIRE PROTECTION BUILDINGS # of Square Feet UNIT COST Station Name 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($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 $2,772.0 HEMSON 109 APPENDIX B.5 TABLE 1 - PAGE 2 MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS FIRE PROTECTION VEHICLES # of Vehicles UNIT COST Vehicle Type 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /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 $3,292.3 HEMSON 110 APPENDIX B.5 TABLE 1 - PAGE 3 MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS FIRE PROTECTION FIRE FIGHTER EQUIPMENT # of Pieces of Equipment UNIT COST Description 2006 2007 2006 2009 2010 2011 2012 2013 2014 2015 ($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 HEMSON 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 HEMSON 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 HEMSON 113 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% HEMSON 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% HEMSON 115 APPENDIX B.6 WASTE MANAGEMENT SERVICES HEMSON 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). HEMSON 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 $0.00 HEMSON 118 • APPENDIX 13.6 TABLE 1 - PAGE 1 MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS WASTE MANAGEMENT BUILDINGS OPERATION # of Square Feet UNIT COST Description of Operations at Site 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($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 $27.7 627.7 HEMSON 119 APPENDIX B.6 TABLE 1 - PAGE 2 MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS WASTE MANAGEMENT VEHICLES OPERATION # of Vehicles UNIT COST Vehicle Type Description of Operations at Slte 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /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 $1,712.5 HEMSON 120 APPENDIX B.6 TABLE 1- PAGE 3 MUNICIPALITY OF KINCARDINE INVENTORY OF CAPITAL ASSETS WASTE MANAGEMENT EQUIPMENT OPERATION # of Pieces of Equipment UNIT COST Description Description of Operations at Site 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ($ /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 HEMSON 121 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 HEMSON 122 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 HEMSON 123 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% HEMSON 124 APPENDIX B.7 GENERAL GOVERNMENT HEMSON 125 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. HEMSON 126 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 HEMSON 127 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 • HEMSON • 128 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% HEMSON 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% HEMSON 130 APPENDIX C ENGINEERING INFRASTRUCTURE TECHNICAL APPENDIX HEMSON 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. HEMSON 132 APPENDIX C.1 ROADS AND RELATED HEMSON 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. HEMSON 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 HEMSON 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% HEMSON 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% HEMSON 138 APPENDIX C.2 WATER SERVICES HEMSON 139 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. HEMSON 140 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 HEMSON 142 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 143 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% HEMSON 144 APPENDIX C.3 WASTEWATER SERVICES HEMSON 145 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 HEMSON 147 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 HEMSON 148 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 149 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 150 APPENDIX D RESERVE FUNDS HEMSON 151 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. HEMSON 152 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 HEMSON 153 APPENDIX E LONG -TERM CAPITAL AND OPERATING IMPACTS HEMSON 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 • HEMSON 155 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 HEMSON 156 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 HEMSON 157 APPENDIX F ASSET MANAGEMENT PLAN HEMSON 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 HEMSON 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 HEMSON 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, DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS 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; DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS AND COUNCIL CONSIDERATION (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. DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS AND COUNCIL CONSIDERATION 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". DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS AND COUNCIL CONSIDERATION 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; DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS AND COUNCIL CONSIDERATION (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. DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS AND COUNCIL CONSIDERATION 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. DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS 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. DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS AND COUNCIL CONSIDERATION (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. DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS 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: DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS 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. DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS 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 DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS 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 DRAFT PROPOSED BY -LAW - SUBJECT TO PUBLIC PROCESS 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 DRAFT PROPOSED BY -LAW — SUBJECT TO PUBLIC PROCESS AND COUNCIL CONSIDERATION 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