Oxford County & Area Municipalities Development Charges - - PowerPoint PPT Presentation

Stakeholder Information Session March 21 & 25, 2019

Oxford County & Area Municipalities Development Charges Background Study

1

Agenda

• Introduction
• Preliminary Findings
• D.C. By-law Policies
• Next Steps

2

Introduction

3

Development Charges

• Purpose of Development Charges (D.C.) is to recover the capital costs

associated with residential and non-residential growth within the municipality

• The capital costs are in addition to what costs would normally be

constructed as part of a subdivision (i.e. internal roads, watermains, roads, sidewalks, streetlights, etc.)

• Municipalities are empowered to impose these charges via the

Development Charges Act (D.C.A.)

4

D.C. Background Study Process (to date)

• D.C. Background Study process has been undertaken in conjunction with

Oxford County and the area municipalities (excl. Woodstock)

• Growth forecast and detailed discussions with staff regarding future needs to

service growth (Jul. – Dec. 2018)

• Council Information Session (Jul. 10, 2018)
• Development Industry Stakeholder Consultation (Aug. 13, and Sep. 5, 2018)
• Presentation of draft findings and D.C. policy discussion with D.C. Steering

Committee (Jan. 18, 2019)

• Council Information Sessions (Feb. 11 – March 21, 2019)
• Development Industry Stakeholder Consultation (Mar. 21 and 25, 2019)

5

• 8. Specified Local Services

The Process of Calculating a Development Charge under the Act that must be followed

Anticipated Development

1.

Estimated Increase in Need for Service

• 2. Ineligible Services

Ceiling Re: Increased Need Needs That Will Be Met Examination of the Long-term Capital and Operating Costs for Capital Infrastructure D.C. Needs By Service Less: Uncommitted Excess Capacity Less: Benefit To Existing Development Less: Grants, Subsidies and Other Contributions Less: 10% Where Applicable D.C. By-law(s) Spatial Applicability D.C. Net Capital Costs

Costs for new development vs. existing development for the term

• f the by-law and the balance
• f the period

Amount of the Charge By Type of Development

(including apportionment of costs - residential and non-residential)

Financing, Inflation and Investment Considerations

3. 4. 5. 6. 11. 12. 13. 16. 17. 14. 15. 9. Tax Base, User Rates, etc. Subdivision Agreements and Consent Provisions Consideration of exemptions, phase-ins, etc.

1 4 3 2

Non-Transit Services Historical Service Standard

4a.

Transit Services Forward-looking Service Standard

4b.

Asset Management Plan for All Capital Projects to be Funded by D.C.s 7. Non-Transit Services “Financially Sustainable”

7a.

Transit Services “Detailed Requirements” 7b.

10.

6

Preliminary Findings

7

D.C. Growth Forecast

• The County is currently undertaking an Municipal Comprehensive

Review to update the growth forecast for the County and Area Municipalities.

• Growth forecast has been prepared based on January 2019 draft

findings for the 10-year period (2019-2029) and 22-year period (2019- 2041

8

Net Population Residential Units Employment 1 Sq.m. of GFA Mid 2019 116,117 48,188 49,140 n/a Mid 2029 131,512 55,005 53,997 n/a Mid 2041 149,581 62,196 60,514 n/a 10-year (2019-2029) 15,395 6,817 4,857 462,800 22-year (2019-2041) 33,464 14,008 11,374 1,095,100

• 1. Excludes NFPOW and WAH

Time Horizon Residential Non-Residential Incremental Change

D.C. Growth Forecast

Population Forecast by Area Municipality

9

2019 2029 2041 10-year (2019- 2029) 22-year (2019- 2041) Woodstock 43,605 51,575 60,528 7,970 16,923 Tillsonburg 16,545 18,386 20,713 1,841 4,168 Ingersoll 13,428 15,381 17,598 1,953 4,170 Norwich 11,257 12,239 13,469 982 2,212 Zorra 8,356 8,849 9,525 493 1,169 South-West Oxford 7,785 8,326 8,914 541 1,129 Blandford Blenheim 7,609 8,270 9,139 661 1,530 East Zorra-Tavistock 7,532 8,486 9,695 954 2,163 County 116,117 131,512 149,581 15,395 33,464 Municipality Net Population

D.C. Growth Forecast

Employment Forecast by Area Municipality

10

2019 2029 2041 10-year (2019- 2029) 22-year (2019- 2041) Woodstock 23,793 27,012 31,288 3,219 7,495 Tillsonburg 7,722 8,233 8,941 511 1,219 Ingersoll 8,319 9,082 10,107 763 1,788 Norwich 2,579 2,685 2,844 106 265 Zorra 1,745 1,784 1,848 39 103 South-West Oxford 1,865 1,914 1,963 49 98 Blandford Blenheim 1,112 1,159 1,232 47 120 East Zorra-Tavistock 2,005 2,128 2,291 123 286 County 49,140 53,997 60,514 4,857 11,374 Municipality Employment (Excl. NFPOW and WAH)

D.C. Services

• The County of Oxford D.C. By-law includes charges for services

imposed uniformly across all area-municipalities, and those imposed on an area specific basis for water and wastewater services (i.e. within defined urban serviced areas of the area municipalities)

• D.C. by-laws for the area-municipalities impose charges uniformly

within their respective jurisdictions

• The following pie charts illustrate the D.C. recoverable capital costs for

each area municipality and the services for which the charges will be imposed within the respective area municipal D.C. by-laws

11

D.C. Recoverable Costs by Area Municipality

Total - $89.7 million

12

County of Oxford

• $64 million

71% Blandford- Blenheim - $2.6 million 3% East Zorra- Tavistock - $2.2 million 3% Ingersoll - $3 million 3% Norwich - $4.2 million 5% Tillsonburg - $12 million 13% Sout West Oxford

• $0.8 million

1% Zorra - $1 million 1%

D.C. Recoverable Costs by Service for each Area Municipality

Capital Project Details for each Municipality attached to document

13

Roads and Related - $10.5 million 87% Fire Services - $0.6 million 5% Police Services - $0.1 million 1% Parks & Recreation - $0.5 million 4% Administration Studies - $0.4 million 3%

Tillsonburg - $12.0 million

Roads and Related - $1.5 million 35% Fire Services - $1.9 million 45% Parks and Recreation Services - $0.7 million 17% Administration Studies

• $0.1 million

3%

Norwich $4.2 million

Roads and Related - $2.5 million 85% Fire Services - $0.3 million 9% Parks and Recreation - $0 million 0% Administration Studies

• $0.2 million

6%

Ingersoll -$3.0 million

Roads and Related - $19.7 million 31% Library - $1.2 million 2% Administration - $0.7 million 1% Land Ambulance - $1.8 million 3% Waste Diversion - $0.2 million 0% Water - $12.5 million 20% Wastewater - $27.8 million 43%

Oxford County - $64.0 million

D.C. Recoverable Costs by Service for each Area Municipality

Capital Project Details for each Municipality attached to document

14

Roads and Related - $0.2 million 31% Fire Services - $0.4 million 49% Parks & Recreation - $0.1 million 12% Administration Studies - $0.1 million 8%

South West Oxford - $0.8 million

Roads and Related - $1.2 million 48% Fire Services - $0.7 million 25% Parks & Recreation - $0.6 million 24% Administration Studies - $0.1 million 3%

Blandford-Blenheim - $2.6 million

Roads and Related - $1.6 million 72% Fire Services - $0.5 million 24% Parks & Recreation - $0 million 0% Administration Studies - $0.1 million 4%

East Zorra-Tavistock - $2.2 million

Roads and Related - $0.5 million 52% Fire Services - $0.1 million 15% Parks & Recreation - $0.2 million 23% Administration Studies - $0.1 million 10%

Zorra - $1.0 million

Calculated D.C. Rates

Oxford County and Area Municipalities per Single Detached Residential Dwelling Unit

15

Serviced Areas in Parenthesis

Municipality Blandford- Blenheim (Plattsville) Blandford- Blenheim (Drumbo) East Zorra- Tavistock (Tavistock) Ingersoll Norwich (Norwich) Tillsonburg South-West Oxford (Mt. Elgin) Zorra (Thamesford) Lower Tier Services Roads and Related 4,665 4,665 3,527 2,750 1,848 4,586 817 2,222 Fire Protection 2,502 2,502 1,133 275 2,926 581 1,839 626 Parks and Recreation 2,352 2,352

• 2,060

622 447 1,027 Administration Services 269 269 220 197 383 428 283 454 Police

• 67
• Total Lower Tier D.C.

9,788 9,788 4,880 3,222 7,217 6,284 3,386 4,329 County Services Administration Services 93 93 93 93 93 93 93 93 Land Ambulance 298 298 298 298 298 298 298 298 Library 410 410 410 410 410 410 410 410 Waste Diversion 28 28 28 28 28 28 28 28 Roads and Related 2,651 2,651 2,651 2,651 2,651 2,651 2,651 2,651 Water 5,399

• 1,181

1,360 1,635 1,554 5,895 6,214 Wastewater 14,034 4,005 10,590 5,409 7,718 4,682 60

• Total Upper Tier D.C.

22,913 7,485 15,251 10,249 12,833 9,716 9,436 9,694 Total - Unserviced Areas (Excl. Water & Wastewater Upper and Lower Tier 13,268 13,268 8,360 n/a 10,697 n/a 6,866 7,809 Total - Fully Serviced Areas (Incl. Water & Wastewater Upper and Lower Tier 32,701 17,273 20,131 13,471 20,050 16,000 12,822 14,023

Comparison of D.C. Rates

Current and Calculated – Residential D.C. in Urban Serviced Areas

16

$5,419 $9,788 $5,419 $9,788 $7,407 $4,880 $3,778 $3,222 $3,573 $7,217 $3,797 $6,284 $3,386 $4,329 $8,431 $8,431 $2,873 $3,480 $2,873 $3,480 $2,873 $3,480 $2,873 $3,480 $2,873 $3,480 $2,873 $3,480 $2,873 $3,480 $2,873 $3,480 $2,873 $3,070 $17,591 $19,433 $8,581 $4,005 $11,804 $11,771 $12,815 $6,769 $11,470 $9,353 $11,018 $6,236 $5,956 $8,954 $6,214 $6,109 $4,749 $25,883 $32,701 $16,873 $17,273 $22,084 $20,131 $19,466 $13,471 $17,916 $20,050 $17,688 $16,000 $2,873 $12,822 $11,827 $14,023 $17,413 $16,250 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Blandford-Blenheim (Plattsville) - Current Blandford-Blenheim (Plattsville) - Calculated Blandford-Blenheim (Drumbo) - Current Blandford-Blenheim (Drumbo) - Calculated East Zorra-Tavistock (Tavistock) - Current East Zorra-Tavistock (Tavistock) - Calculated Ingersoll - Current Ingersoll - Calculated Norwich (Norwich) - Current Norwich (Norwich) - Calculated Tillsonburg - Current Tillsonburg - Calculated South-West Oxford (Mt. Elgin) - Current South-West Oxford (Mt. Elgin) - Calculated Zorra (Thamesford) - Current Zorra (Thamesford) - Calculated Woodstock - Current Woodstock - Calculated

Residential D.C. per Single & Semi-Detached Unit

Lower Tier County (General Services) County (Water & Wastewater)

Comparison of D.C. Rates

Current and Calculated – Residential D.C. in Rural Unserviced Areas

17

$5,419 $9,788 $7,407 $4,880 $3,573 $7,217 $3,386 $4,329 $2,873 $3,480 $2,873 $3,480 $2,873 $3,480 $2,873 $3,480 $2,873 $3,480 $8,292 $13,268 $10,280 $8,360 $6,446 $10,697 $2,873 $6,866 $2,873 $7,809 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 Blandford-Blenheim - Current Blandford-Blenheim - Calculated East Zorra-Tavistock - Current East Zorra-Tavistock - Calculated Norwich - Current Norwich - Calculated South-West Oxford - Current South-West Oxford - Calculated Zorra - Current Zorra - Calculated

Residential D.C. per Single & Semi-Detached Unit

Lower Tier County (General Services)

Calculated D.C. Rates

Oxford County and Area Municipalities per Square Metre of Non- Residential Gross Floor Area

18

Serviced Areas in Parenthesis

Municipality Blandford- Blenheim (Plattsville) Blandford- Blenheim (Drumbo) East Zorra- Tavistock (Tavistock) Ingersoll Norwich (Norwich) Tillsonburg South-West Oxford (Mt. Elgin) Zorra (Thamesford) Lower Tier Services Roads and Related 18.90 18.90 14.73 9.15 6.48 20.43 2.70 7.63 Fire Protection 10.14 10.14 4.73 0.91 10.01 2.71 5.08 2.15 Parks and Recreation 6.66 6.66

• 3.65

0.54 0.75 2.46 Administration Services 1.09 1.09 0.92 0.66 1.43 2.00 0.78 1.56 Police 0.31

• Total Lower Tier D.C.

36.79 36.79 20.38 10.72 21.57 25.99 9.31 13.80 County Services Administration Services 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.36 Land Ambulance 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 Library 0.38 0.38 0.38 0.38 0.38 0.38 0.38 0.38 Waste Diversion 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 Roads and Related 10.22 10.22 10.22 10.22 10.22 10.22 10.22 10.22 Water 25.20

• 4.15

4.52 5.79 7.25 17.67 20.34 Wastewater 65.50 10.22 37.19 17.99 27.35 21.85 0.18

• Total Upper Tier D.C.

102.96 22.48 53.60 34.77 45.40 41.36 30.11 32.60 Total - Unserviced Areas (Excl. Water & Wastewater Upper and Lower Tier 49.05 49.05 32.64 n/a 33.83 n/a 21.57 26.06 Total - Fully Serviced Areas (Incl. Water & Wastewater Upper and Lower Tier 139.75 59.27 73.98 45.49 66.97 67.35 39.42 46.40

Comparison of D.C. Rates

Current and Calculated – Commercial D.C. in Urban Serviced Areas

19

$36.79 $0.00 $36.79 $26.75 $20.38 $10.72 $21.57 $25.99 $9.31 $13.80 $19.51 $19.51 $11.51 $12.26 $11.51 $12.26 $11.51 $12.26 $11.51 $12.26 $11.51 $12.26 $11.51 $12.26 $11.51 $12.26 $11.51 $12.26 $11.51 $12.26 $139.84 $90.70 $30.30 $10.22 $61.74 $41.34 $62.13 $22.51 $49.52 $33.14 $57.54 $29.10 $17.85 $36.93 $20.34 $15.85 $18.43 $151.35 $139.75 $41.81 $59.27 $100.00 $73.98 $73.64 $45.49 $61.03 $66.97 $69.05 $67.35 $11.51 $39.42 $48.44 $46.40 $46.87 $50.20 $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 Blandford-Blenheim (Plattsville) - Current Blandford-Blenheim (Plattsville) - Calculated Blandford-Blenheim (Drumbo) - Current Blandford-Blenheim (Drumbo) - Calculated East Zorra-Tavistock (Tavistock) - Current East Zorra-Tavistock (Tavistock) - Calculated Ingersoll - Current Ingersoll - Calculated Norwich (Norwich) - Current Norwich (Norwich) - Calculated Tillsonburg - Current Tillsonburg - Calculated South-West Oxford (Mt. Elgin) - Current South-West Oxford (Mt. Elgin) - Calculated Zorra (Thamesford) - Current Zorra (Thamesford) - Calculated Woodstock - Current Woodstock - Calculated

Commercial D.C. per sq.m G.F.A.

Lower Tier County (General Services) County (Water & Wastewater)

Comparison of Urban Serviced Area D.C.s for the Surrounding Area

Total D.C. per Residential Single-Detached Dwelling Unit

20

• 5,000

10,000 15,000 20,000 25,000 30,000 35,000

$ per unit

Residential Development Charges per Fully-Serviced Single Detached Dwelling for Select Municipalities

Blandford-Blenheim (Plattsville) Blandford-Blenheim (Drumbo) East Zorra-Tavistock (Tavistock) Ingersoll Norwich (Norwich) Tillsonburg South-West Oxford (Mt. Elgin) Zorra (Thamesford) Woodstock Other Municipalities

Comparison of Urban Serviced Area D.C.s for the Surrounding Area

Total D.C. per sq.m. Commercial Gross Floor Area

21

• 20.00

40.00 60.00 80.00 100.00 120.00 140.00 160.00 180.00

$ per sq.m.

Commercial Development Charges per Square Metre of G.F.A. for Select Municipalities

Blandford-Blenheim (Plattsville) Blandford-Blenheim (Drumbo) East Zorra-Tavistock (Tavistock) Ingersoll Norwich (Norwich) Tillsonburg South-West Oxford (Mt. Elgin) Zorra (Thamesford) Woodstock Other Municipalities

Comparison of Urban Serviced Area D.C.s for the Surrounding Area

Total D.C. per sq.m. Industrial Gross Floor Area

22

• 20.00

40.00 60.00 80.00 100.00 120.00 140.00 160.00

$ per sq.m.

Industrial Development Charges per Square Metre of G.F.A. for Select Municipalities

Blandford-Blenheim (Plattsville) Blandford-Blenheim (Drumbo) East Zorra-Tavistock (Tavistock) Ingersoll Norwich (Norwich) Tillsonburg South-West Oxford (Mt. Elgin) Zorra (Thamesford) Woodstock Other Municipalities

Development Charge By-Law Policies

23

D.C. By-Law Policies

• D.C.s can be calculated and payable at the time of building permit

issuance or at subdivision registration for hard services

• Municipality may enter into agreement for the D.C. to paid before or

after it would otherwise be payable

• A municipality is not required to issue a building permit for development

to which a D.C. applies unless the charge has been paid

• If a D.C. or any part of it remains unpaid after it is payable, the amount

unpaid shall be added to the tax roll and shall be collected in the same manner as taxes

• D.C.s are payable on the date the first building permit is issued

Timing of Collection

24

D.C. By-Law Policies

• The Act provides for some mandatory exemptions but also allows

municipalities the ability to provide it’s own exemptions

• Exemptions set out certain classes of development that will not be

required to pay D.C.s. These exemptions may be determined by:

• Use (e.g. places of worship, farm buildings)
• Geographic area
• Development type
• Service exemption
• The Act is specific in identifying that the revenue forgone may not be

made up by increasing the D.C.s for other classes of development

• In effect, it is a loss of revenue to the Municipality which will have to be

funded via taxes, rates, reserves or other financial resources D.C. Exemptions

25

D.C. By-Law Policies

• The D.C.A. provides statutory exemptions for:
• Industrial building expansions (may expand by 50% with no D.C.)
• Residential intensification:
• May add up to two apartments for a single detached home as long as

size of home doesn’t double

• Add one additional unit in medium & high density buildings
• Municipal Governments and School Boards

Statutory D.C. Exemptions

26

D.C. By-Law Policies

Exemption County of Oxford Blandford- Blenheim East Zorra- Tavistock Ingersoll Norwich Tillsonburg Woodstock 1 Non-residential uses ✓ ✓ ✓ ✓ 2 Industrial buildings ✓ ✓

(incl. in #1)

✓ ✓

(incl. in #1)

✓

(incl. in #1)

✓

(incl. in #1)

✓ 3 Institutional development ✓

(incl. in #1)

✓

(incl. in #1)

✓

(incl. in #1)

✓

(incl. in #1)

✓ 4 Non-residential farm building

✓ (incl. in #2) ✓ (incl. in #1) ✓ (incl. in #2) ✓ (incl. in #1) ✓ (incl. in #1) ✓ (incl. in #1) ✓ (incl. in #2)

5 Places of worship ✓ ✓ ✓ ✓ ✓ ✓ ✓ 6 Public Hospitals ✓ ✓ ✓ ✓ ✓ ✓ ✓ 7 Development in Central Business District and Entrepreneurial Area ✓ ✓ ✓ ✓ 8 Temporary buildings and structures ✓ ✓ ✓ ✓ ✓ ✓ 9 Long term care home ✓ ✓ 10 Affordable housing ✓ ✓ ✓ ✓ ✓ ✓ ✓ 11 Temporary dwelling units ✓ ✓ ✓ ✓ ✓ ✓

Current Non-Statutory D.C. Exemptions

27

D.C. By-Law Policies

• Oxford County
• Private Schools
• All Municipalities
• Clarifying non-residential farm building definition to exclude

commercial, retail, and marijuana production facilities from the application of the exemption Non-Statutory Exemptions for Further Considerations

28

D.C. By-Law Policies

• Redevelopment credits on conversions or demolitions of existing

buildings or structures are generally granted to recognize what is being replaced on site (not specific in the Act but provided by case law)

• Redevelopment credits are proposed to be provided where

demolition/conversion occurs within 5 years of building permit issuance

• Credits are not granted for demolitions/conversions that would be

exempt under current by-laws

• Norwich currently provides for 3-year period for residential

redevelopment credits (5-year credit period for non-residential redevelopment) Redevelopment Credits

29

D.C. By-Law Policies

• D.C.A. allows for adjustment of charges to reflect underlying cost

increases and reduces municipal cash flow impact between statutory by-law reviews

• Indexing can be:
• Mandatory – implemented annually commencing from the date the

by-law comes into force, in accordance with the Statistics Canada Quarterly, Construction Price Statistics

• Discretionary – index presented to Council annually for direction

Current D.C. By-Law Provisions

• Provision for mandatory annual indexing on April 1st for all

municipalities (except EZT)

• East Zorra-Tavistock - Discretionary indexing on April 1st

D.C. Indexing

30

D.C. By-Law Policies

• Where no D.C.s currently exist or calculated increases are more

significant, Council may wish to consider a transition policy

• Phasing-in the implementation of the charge over multiple years

(e.g. equal instalments over the 5-year by-law term)

• Transition period of 6 months between notification of increase (i.e.

stakeholder consultation) and implementation of increased charge

• D.C. revenue forgone during transition periods (and due to other

exemptions) must be funded from non-D.C. sources (e.g. taxes, user fees, reserves or other financial resources) Transition Policies

31

D.C. By-Law Definitions

• Dwelling Units (Special Care Dwellings)
• Proposed that dwelling unit definition include wording that exclusive

culinary facilities may be provided, suggesting special care dwellings would be treated as residential development

• Industrial Definition re: Self Storage Facilities
• Recommended that the definition of Industrial Uses exclude Self

Storage Facilities

• This recommendation is consistent with the treatment of these types
• f employment in the North American Industrial Classification

System, where this employment is classified as real estate and rental leasing and is included in the commercial sector in the DC Background Study Growth Forecast.

• Further revisions to by-law definitions are being considered to clarify

current policies and practices

32

Next Steps

33

Next Steps

• Release of D.C. Background Studies 60 days prior to by-law passage
• D.C. Public Meetings (at least 2 weeks after release of studies)
• Councils to consider by-laws for adoption (at least 60 days after release of

studies)

34 Municipality Background Study Release Public Meeting By-Law Passage Current By-Law Expiry Tillsonburg April 12, 2019 May 13, 2019 June 13, 2019 June 23, 2019 Norwich April 19, 2019 May 14, 2019 June 18, 2019 July 8, 2019 County of Oxford April 24, 2019 May 22, 2019 June 26, 2019 July 8, 2019 East Zorra Tavistock April 15, 2019 May 15, 2019 July 3, 2019 July 8, 2019 Ingersoll May 9, 2019 June 10, 2019 July 8, 2019 July 14, 2019 Blandford-Blenheim June 4, 2019 June 19, 2019 August 7, 2019 August 31, 2019 South West Oxford April 16, 2019 May 21, 2019 June 18, 2019 n/a Zorra April 20, 2019 May 15, 2019 June 19, 2019 n/a