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2019 Development Charges Background Study Page 2 TABLE of CONTENTS

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2019 Development Charges Background Study Page 2 TABLE of CONTENTS 2019 Development Charges Background Study DEVELOPMENT FINANCE DRAFT February 25, 2019 TABLE OF CONTENTS CHAPTER 1: EXECUTIVE SUMMARY ...................................................................... 4 CHAPTER 4: CALCULATION OF THE DEVELOPMENT CHARGE RATE ............. 16 CHAPTER 2: BACKGROUND STUDY PURPOSE & PROCESS .............................. 7 4.1 Planning Period 4.2 Growth Forecasts 2.1 Purpose of the Development Charge Background Study 4.3 Forecasting Future Capital Needs 2.2 2019 Development Charge Process 4.4 Legislated Adjustments to Arrive at Net DC Eligible Amount 2.2.1 DC External Stakeholder Committee 4.5 Examination of Existing Levels of Service 2.2.2 Policy Decisions 4.6 Calculating DC Rates 2.2.3 Growth Forecasts TABLE 4-1: Proposed Development Charge Rates 2.2.4 Servicing Needs and DC Master Plans 2.2.5 Draft Rate Calculations CHAPTER 5: SUMMARIES OF THE DEVELOPMENT CHARGE RATES ............... 21 2.2.6 Council Review and Public Input Process TABLE 5-1: All Services CHAPTER 3: DEVELOPMENT CHARGES ACT & POLICIES ................................ 10 TABLE 5-2: Residential 3.1 Amendments to the Development Charges Act, 1997 – Bill 73 TABLE 5-3: Non-Residential 3.1.1 Area Rating TABLE 5-4: Timing of Expenditures 3.1.2 Asset Management Plan for New Infrastructure 3.1.3 60 Day Circulation Period for DC Background Study APPENDIX A: Growth Forecasts ........................................................................... 26 3.1.4 Timing of DC Collection 3.1.5 Transit TABLE A-1: Employment 3.1.6 Changes to Ineligible Services TABLE A-2: Population TABLE A-3: Housing 3.2 Services & Types of Work Identified for DC Recovery TABLE A-4: Residential 3.3 Additional Services TABLE A-5: Summary of Annual Housing Growth 1996 - 2044 3.4 When a DC is Calculated and Payable TABLE A-6: Non-Residential Floor Space 3.5 Demolition Credits TABLE A-7: Residential Forecast Summary 3.6 Non-Residential Rates TABLE A-8: Non-Residential Forecast Summary 3.7 Conversion Credits 3.8 Local Service Policy APPENDIX B: Fire Services ................................................................................... 38 3.9 Retirement of the Urban Works Reserve Fund (UWRF) Service Standards: Table B-1: Vehicles 3.10 Rural Area Charges Table B-2: Facilities 3.11 Intention Not to Introduce Credits into the System Table B-3: Outfitting 3.12 Reserve Funds Rate Calculations: Table B-4: Vehicles 3.13 Interim Financing for Growth Infrastructure Projects Table B-5: Facilities 3.14 Annual Indexing of DC Rates Table B-6: Outfitting 3.15 Effective Date of By-law Table B-7: Cash Flow Analysis & Final Rate Calculation 3.16 Administration of By-law APPENDIX C: Police Services ............................................................................... 51 3.17 Fund Reporting and Monitoring Service Standards: 3.18 Growth Management Implementation Strategy (GMIS) Table C-1: Facilities 3.19 Municipal Servicing and Financing Agreements (MSFA) Table C-2: Vehicles Table C-3: Outfitting City of London 2019 Development Charges Background Study Page 2 TABLE OF CONTENTS Rate Calculations: Rate Calculations: Table C-4: Facilities Table G-1: Facilities Table C-5: Outfitting Table G-2: Vehicles Table C-6: Cash Flow Analysis & Final Rate Calculation Table G-3: Cash Flow Analysis & Final Rate Calculation APPENDIX D: Corporate Growth Studies ............................................................. 61 APPENDIX H: Waste Diversion Services ............................................................ 143 Rate Calculations: Service Standards: Table D-1: Rate Calculation Table H-1: Facilities Table D-2: Cash Flow Analysis & Final Rate Calculation Rate Calculations: Table H-2: Facilities APPENDIX E: Library Services .............................................................................. 69 Table H-3: Cash Flow Analysis & Final Rate Calculation Map E-1: 2019 London Public Library Districts Service Standards: APPENDIX I: Operations Centre Services ........................................................... 150 Table E-1: Collections Service Standards: Table E-2: Facilities Table I-1: Facilities Rate Calculations: Rate Calculations: Table E-3: Collections Table I-2: Facilities Table E-4: Facilities Table I-3: Cash Flow Analysis & Final Rate Calculation Table E-5: Cash Flow Analysis & Final Rate Calculation APPENDIX J: Roads Services .............................................................................. 157 APPENDIX F: Parks & Recreation Services .......................................................... 81 Table J-1: Rate Calculation Service Standards: Table J-2: Cash Flow Analysis & Final Rate Calculation Table F-1: Summary Table F-2: Parkland Development Summary APPENDIX K: Wastewater Services .................................................................... 170 Table F-3: Facilities Summary Table K-1: Rate Calculation Table F-4: Equipment Summary Table K-2: Cash Flow Analysis & Final Rate Calculation Table F-5: Parkland Development Detail Table F-6: Parkland Development – Thames Valley Parkway APPENDIX L: Stormwater Management Services .............................................. 178 Table F-7: Parkland Development – Open Space SWM Block Pathways Table L-1: Rate Calculation Table F-8: Parkland Development – Foot Bridges & Tunnels Table L-2: Cash Flow Analysis & Final Rate Calculation Table F-9: Facilities – Arenas Table F-10: Facilities – Community / Senior Centres Table F-11: Facilities – Aquatics APPENDIX M: Water Distribution Services ......................................................... 187 Table F-12: Facilities – Wading Pools & Spray Pads Table M-1: Rate Calculation Table F-13: Facilities – Specialty Table M-2: Cash Flow Analysis & Final Rate Calculation Table F-14: Facilities – Fieldhouses Rate Calculations: APPENDIX N: Urban Works Reserve Fund Retirement ...................................... 195 Table F-15: Parkland Development Table N-1: UWRF Obligations to be Transferred to the Respective CSRF Table F-16: Facilities Table F-17: Cash Flow Analysis & Final Rate Calculation APPENDIX O: Lifecycle & Operating Cost Impacts ............................................ 198 Table O-1: Hard Services APPENDIX G: Transit Services ............................................................................ 131 Table O-2: Soft Services Hemson Consulting Technical Appendix APPENDIX P: Proposed 2019 DC-By-law ............................................................ 195 City of London 2019 Development Charges Background Study Page 3 DraftCHAPTER 2019 Development 1: Charge Rates Executive Summary City of London 2019 Development Charges Background Study Page 4 Table of Contents CHAPTER 1: Executive Summary Development Charges (DCs) provide a method for municipalities to recover the capital costs of The primary objective of the 2019 DC Study was to be consistent with the London Plan provision that providing infrastructure and services associated with growth. In Ontario, the Development Charges “Growth pays for Growth”. With that as a key guiding principle, DC rates have been calculated based Act (DCA) governs the calculation of rates and the collection of DCs. Since the passing of the 2014 on projected growth, associated infrastructure needs and the requirements of the DCA. DC Study, the Province has updated the DCA through Bill 73 (Smart Growth for Our Communities Act) which came into force and effect January 1, 2016. Some of the key changes resulting from Bill A further objective of the 2019 DC Study was to conduct a consultative process where information 73 include the following: pertinent to policy matters and rate calculations were reviewed and discussed with various stakeholders. The DC External Stakeholder Committee that was established during the 2014 DC • Transit has been removed from the required 10% statutory deduction; Study was carried forward to the 2019 DC Study. This Committee’s composition includes • The service standard calculation for Transit is now forward looking based on ridership, rather representatives from the London Home Builders’ Association, the Urban League of London, and the than a backward looking historical service standard; London Development Institute that represent the interests of the community and industry. This • The list of ineligible services for which DCs could not be imposed has changed so that Committee has met approximately 25 times since the initiation of the 2019 DC process, providing municipal infrastructure for Waste Diversion can now be recovered from DCs; valuable input and perspectives that have been reflected in the Background Study and By-law. In • Municipalities must consider the use of an Area Rating to reflect different needs for services in addition, Staff have held numerous targeted review meetings with individual stakeholders to address different areas; more detailed and technical matters. • DCs must be collected at the time of the first building permit; • An asset management plan must be prepared to deal with all assets whose capital costs are A key element of the 2019 DC Study is the full retirement of the Urban Works Reserve Funds (UWRF). proposed to be funded under the DC By-law and demonstrate that all of the assets are Under the 2019 DC Background Study and By-law, all outstanding UWRF obligations, revenues and financially sustainable over their full lifecycle; and uncommitted balances will be transferred to the respective City Services Reserve Fund and the • A DC Background Study must be made available to the public at least 60 days prior to the UWRF will be formally closed. passing
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