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District of Peachland Development Cost Charge (DCC) Update Information Panels

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District of Peachland Development Cost Charge (DCC) Update Information Panels District of Peachland Development Cost Charge (DCC) Update Information Panels Why Does the District Levy DCCs? To pay for the costs of expanding and upgrading the District’s roads, water transmission, water treatment, parks, and wastewater infrastructure to meet the needs and impacts of growth. What Do DCCs Pay For? DCCs can be levied for: . Transportation infrastructure . Wastewater infrastructure . Water infrastructure . Drainage infrastructure . Parks and park development Infrastructure needs must be related to development. By legislation, DCCs cannot be used to pay for: . Operation and maintenance of District engineering infrastructure or parkland . New or upgraded works needed only for the existing population . New libraries, fire halls, police stations and recreation buildings. Who Pays For DCCs? . Applicants for subdivision approval to create single-family development sites. Applicants for building permits to construct multi-family or commercial development. Why Update the DCC Bylaw? Development cost charge bylaws must be reviewed periodically to ensure consistency with development, Peachland master planning documents and to accurately reflect construction costs. The last review of the DCC programs and rates was completed in 2008. Since then, the following changes have taken place: . District of Peachland Water Master Plan – amended 2015 . District of Peachland Subdivision & Development Servicing Bylaw No. 1956 - Consolidated 2014 . Parks and Recreation Master Plan - completed 2010 . Sustainable Downtown Peachland Plan – completed 2010 . Lower Princeton Area Sector Plan – completed 2011 . New Monaco Area Sector Plan – completed 2011 . Ponderosa / Pincushion Ridge Area Sector Plan – completed 2011 . District of Peachland Official Community Plan Update – ongoing . District of Peachland Zoning Bylaw 2100 – second reading 2016 . District of Peachland Corporate Strategic Plan . Updated financial information including current District of Peachland DCC Reserves . Other reports that identify future requirements for Roads, Water, Sewer, Drainage and Parks projects required to address growth. The District is now revising its DCC rates to reflect these changes. How Were the New Rates Calculated? The following steps were followed to calculate the new DCC rates: STEP 1: ESTIMATE GROWTH: Growth estimates were revised to reflect land use plans for Peachland. STEP 2: DETERMINE CAPITAL COSTS: To service anticipated growth, existing DCC capital programs were updated. STEP 3: DETERMINE BENEFIT FACTORS: To ensure costs were shared fairly between new and existing development, a benefit factor was determined for each DCC project. The benefit factor is the percentage of a project’s costs that is attributed to growth. STEP 4: DETERMINE MUNICIPAL ASSIST FACTOR The Local Government Act requires municipalities to assist new development with the DCC program costs. The District of Peachland will contribute 1% of DCC costs attributed to growth (the Assist Factor is currently 1%). It should be noted that increasing the Assist Factor will result in lower DCCs, but the difference must be made-up through other sources such as property taxes. STEP 5: DETERMINE EQUIVALENT UNITS Different land uses have different impacts on infrastructure. To reflect these differences, equivalent units were used to allocate DCC costs across land uses. STEP 6: CALCULATE DCC RATES The final step was to calculate DCC rates. In general, this meant dividing the DCC costs by the amount of growth to generate a charge per lot/unit/square metre. Growth Projections Residential Growth Residential Growth estimates (20 years) are based on population projections developed by the District through review of the OCP, 15 years of population and building permit data, and other relevant planning documents (e.g. New Monaco Area Sector Plan, Lower Princeton Area Sector Plan, etc.) . Growth projections for residential land uses are based on a baseline population growth rate of 0.5% established through 15 years of population data from BCStats. The baseline residential population growth rate (0.5%) in Peachland was then compared to Lake Country to determine how the onset of several large scale developments affected growth over the past ten years. The increase in percentage growth associated with large development in Lake Country (3.1%) was then added to Peachland Baseline growth (0.5%). This resulted in a 3.6% total annual average growth rate, which equates to an increase of about 2,097 residential units by 2036. Growth estimates for water treatment were only applied for a ten year period. Water treatment timelines were shortened to align with the shorter timeline of these projects. Non-Residential Growth To determine future commercial, industrial and institutional growth: . 10 years of subdivision and building permit data was reviewed . local building permit values and construction cost estimates were used to evaluate recent trends Growth Projections by Category 20 Years (Roads, Water Treatment Land Use Water Transmission, Units 10 years Sewer, Parks) Single Detached Housing 246 102 Lots Multiple Unit Residential 2,097 865 units Commercial 16,500 8,250 m2 Industrial 4,800 2,400 m2 Institutional 40 20 beds Transportation Projects Project List Municipal Costs DCC Recoverable Program Costs Total Capital Costs Grants $4,872,319 $6,244,504 $11,116,824 $0 ROAD SYSTEM CAPITAL COSTS TOTAL Project CAPITAL Timing Project Code Description COST RD1 Princeton Avenue Upgrade - Hwy 97 to Ellison 2018 $4,463,393 RD2 Somerset Princeton Intersection 2018 $2,200,000 RD3 Turner Princeton Intersection 2027 $416,976 RD4 Cousins Road Upgrade 2024 $230,563 RD5 Princeton Avenue Upgrade - Ellison to Turner 2027 $1,585,675 $1,326,999 RD6 Beach Avenue Upgrade - 13th Street to Todd Road (no Walkway) 2021 RD7 Columbia Princeton Intersection 2021 $310,000 RD8 Ponderosa Sidewalk 2023 $583,219 TOTAL $11,116,824 Water Projects Project List – Water Transmission Municipal Costs DCC Recoverable Program Costs Total Capital Costs Grants $12,567,711 $11,454,085 $24,021,796 $0 WATER SYSTEM CAPITAL COSTS TOTAL Project Timing CAPITAL Project Code Project Name COST WAT 1 Low Lift Pump Station 2020 $1,606,500 WAT 2 Upper Ponderosa Reservoir 2020 $2,875,635 WAT 3 Gravity Trunk - Peachland Creek to Turner Avenue 2022 $5,794,726 WAT 4 Pierce Booster Station 2022 $803,250 WAT 5 Gravity Trunk to Trepanier System 2024 $3,560,614 WAT 6 Cousins Reservoir (including Supply line) 2026 $4,819,500 WAT 7 Double PRV Station (Ponderosa/Trepanier) 2024 $241,570 WAT 8 Okanagan Lake Pump House Upgrades (UV and Intake) 2034 $2,400,000 Divert MacDonald Creek below Moose Pond to the Peachland $1,320,000 WAT 9 Creek watershed (gravity) 2036 WAT 10 Downtown Water Supply Upgrades (Somerset / Minto) 2018 $250,000 WAT 11 Downtown Water Supply Upgrades (Beach Avenue) 2018 $350,000 TOTAL $24,021,796 Project List – Water Treatment Municipal Costs DCC Recoverable Program Costs Total Capital Costs Grants $9,742,044 $5,394,756 $26,500,000 $11,363,200 TOTAL WATER TREATMENT CAPITAL COSTS Project CAPITAL Timing Project Code Project Name COST WTR 1 Peachland Creek Water Treatment Plant - Phase 1 2018 $18,820,000 WTR 2 Peachland Creek Water Treatment Plant - Phase 2 2025 $7,680,000 TOTAL $26,500,000 Sanitary Sewer Projects Project List Municipal Costs DCC Recoverable Program Costs Total Capital Costs Grants $142,759 $6,807,121 $6,949,880 $0 TOTAL SANITARY SEWER SYSTEM CAPITAL COSTS Project CAPITAL Timing Project Code Project Name COST SAN1 Upgrade 50m section of 450mm pipe (between 11th and 12th) 2023 $119,000 Upgrade 46m section of 525mm pipe (between Butler and SAN2 2023 $109,480 Trepanier) SAN3 Predesign Study for Flow Equalization 2019 $71,400 SAN4 Flow Equalization in South Princeton Area 2020 $1,770,000 SAN5 Main Lift Station Upgrade #1 (70L/s to 95L/s) 2020 $370,000 SAN6 Main Lift Station Upgrade #2 (95L/s to 168 L/s) 2024 $2,670,000 SAN7 Emergency Storage Facility 2020, 2024 $1,840,000 TOTAL $6,949,880 Parks Projects Project List Municipal Costs DCC Recoverable Program Costs Total Capital Costs Grants $1,374,929 $1,451,135 $ 2,826,064 $0 TOTAL PARKS CAPITAL COSTS Project CAPITAL Timing Project Code Project Name COST Beach Avenue Waterfront Walkway 13th Street - Todd PAR1 2021 $1,326,999 Road PAR2 MacKinnon Park Improvements (1.93 hectares) 2023 $50,000 PAR3 Princeton Neighborhood Playground 2025 $50,000 PAR4 Ponderosa Neighborhood Playground 2020 $50,000 PAR5 Somerset Walking Trail / Path Connection 2027 $1,049,065 PAR6 Washroom 13th Ave 2025 $200,000 PAR7 Heritage Park Washroom 2019 $100,000 TOTAL $2,826,064 DCCs Current vs. Proposed - Total Change in Total DCCs % Change Land Use Unit Current Proposed Change ($) Over 8 yrs Single Per Lot $13,530 $17,028 $3,498 26% Detached Multiple Unit Per Unit $10,462 $14,985 $4,523 43% Per Square Commercial $32.08 $46.38 $14.30 45% Meter Per Square Industrial $26.74 $29.01 $2.27 9% Meter Institutional Per Bed $5,231 $7,492 $2,261 43% DCCs Current vs. Proposed by Type Water Water Land Use Unit Roads Transmission Treatment Sewer Parks Current Proposed Current Proposed Current Proposed Current Proposed Current Proposed Single Lot $2,782 $2,670 $3,787 $4,917 $5,408 $5,587 $699 $3,016 $854 $839 Detached Multiple Unit Per Unit $1,864 $2,349 $3,029 $4,327 $4,327 $4,916 $559 $2,655 $683 $738 Residential Commercial Per m2 $8.35 $8.01 $7.57 $9.83 $10.82 $11.17 $3.63 $15.69 $1.71 $1.68 Industrial Per m2 $8.35 $8.01 $7.57 $9.83 $10.82 $11.17 $0.00 $0.00 $0.00 $0.00 Institutional Per bed $932 $1,175 $1,515 $2,163 $2,163 $2,458 $279 $1,327
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