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2021 Development Charges Background Study Update - Draft June 2020 TABLE of CONTENTS APPENDIX B: Fire Services

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2021 Development Charges Background Study Update - Draft June 2020 TABLE of CONTENTS APPENDIX B: Fire Services 2021 Development Charges Background Study Update DEVELOPMENT FINANCE Draft June 2020 TABLE OF CONTENTS CHAPTER 1: EXECUTIVE SUMMARY ...................................................................... 1 3.11 Retirement of the Urban Works Reserve Fund (UWRF) 3.12 Rural Area Charges CHAPTER 2: BACKGROUND STUDY PURPOSE & PROCESS .............................. 4 3.13 Intention Not to Introduce Credits into the System 2.1 Purpose of the Development Charge Background Study 3.14 Reserve Funds 2.2 2021 Development Charge Process 3.15 Annual Indexing of DC Rates 2.2.1 DC External Stakeholder Committee 3.16 Administration of By-law 2.2.2 Policy Decisions 3.17 Fund Reporting and Monitoring 2.2.3 Growth Forecasts 3.18 Growth Management Implementation Strategy (GMIS) 2.2.4 Servicing Needs and DC Master Plans 3.19 Municipal Servicing and Financing Agreements (MSFA) 2.2.5 Draft Rate Calculations 3.20 Effective Date of By-law 2.2.6 Council Review and Public Input Process CHAPTER 3: DEVELOPMENT CHARGES ACT & POLICIES .................................. 7 CHAPTER 4: CALCULATION OF THE DEVELOPMENT CHARGE RATE ............. 14 3.1 Amendments to the Development Charges Act, 1997 – Bill 73 Smart Growth for Our 4.1 Planning Period Communities Act 4.2 Growth Forecasts 3.1.1 Area Rating 4.3 Forecasting Future Capital Needs 3.1.2 Asset Management Plan for New Infrastructure 4.4 Legislated Adjustments to Arrive at Net DC Eligible Amount 3.1.3 60 Day Circulation Period for DC Background Study 4.5 Examination of Existing Levels of Service 3.1.4 Timing of DC Collection 4.6 Calculating DC Rates 3.1.5 Transit TABLE 4-1: Proposed Development Charge Rates 3.1.6 Changes to Ineligible Services 3.2 Amendments to the Development Charges Act, 1997 - Bill 108 – More Homes More CHAPTER 5: SUMMARIES OF THE DEVELOPMENT CHARGE RATES ............... 19 Choice Act TABLE 5-1: All Services 3.2.1 Eligible Services for DC Collection TABLE 5-2: Residential 3.2.2 Exemption for Certain Dwelling Units & Secondary Suites TABLE 5-3: Non-Residential 3.2.3 Elimination of 10 Year Horizon Cap for Certain Services TABLE 5-4: Timing of Expenditures 3.2.4 Elimination of Mandatory 10% Reduction for Certain Services 3.2.5 Changes to When the DC Rate is Calculated APPENDIX A: Growth Forecasts ...................................................................................... 24 3.2.6 Changes to When the DC is Payable Technical Appendix: Watson Memorandum 3.2.7 Municipalities May Charge Interest on DCs TABLE A-1: Employment 3.3 Services & Types of Work Identified for DC Recovery TABLE A-2: Population 3.4 When a DC is Calculated and Payable 3.5 Notice of Occupation TABLE A-3: Housing 3.6 Interest of DCs TABLE A-4: Residential 3.7 Demolition Credits TABLE A-5: Summary of Annual Housing Growth 1996 - 2044 3.8 Non-Residential Rates TABLE A-6: Non-Residential Floor Space 3.9 Conversion Credits TABLE A-7: Residential Forecast Summary 3.10 Local Service Policy TABLE A-8: Non-Residential Forecast Summary City of London 2021 Development Charges Background Study Update - Draft June 2020 TABLE OF CONTENTS APPENDIX B: Fire Services ................................................................................... 43 Table E-14: Facilities – Fieldhouses Service Standards: Rate Calculations: Table B-1: Vehicles Table E-15: Parkland Development Table B-2: Facilities Table E-16: Facilities Table B-3: Outfitting Table E-17: Cash Flow Analysis & Final Rate Calculation Rate Calculations: Table B-4: Vehicles APPENDIX F: Transit Services ............................................................................ 126 Table B-5: Facilities Hemson Consulting Technical Appendix Table B-6: Outfitting Table B-7: Cash Flow Analysis & Final Rate Calculation Rate Calculations: Table F-1: Facilities APPENDIX C: Police Services ............................................................................... 55 Table F-2: Vehicles Table F-3: Cash Flow Analysis & Final Rate Calculation Service Standards: Table C-1: Facilities Table C-2: Vehicles APPENDIX G: Waste Diversion Services ............................................................ 137 Table C-3: Outfitting Service Standards: Rate Calculations: Table G-1: Facilities Table C-4: Facilities Rate Calculations: Table C-5: Outfitting Table G-2: Facilities Table C-6: Cash Flow Analysis & Final Rate Calculation Table G-3: Cash Flow Analysis & Final Rate Calculation APPENDIX D: Library Services .............................................................................. 65 APPENDIX H: Roads and Related Services ........................................................ 143 Table H-1: Rate Calculation Map D-1: London Public Library Districts Table H-2: Cash Flow Analysis & Final Rate Calculation Service Standards: Table D-1: Collections Table D-2: Facilities APPENDIX I: Wastewater Services ...................................................................... 157 Rate Calculations: Table I-1: Rate Calculation Table D-3: Collections Table I-2: Cash Flow Analysis & Final Rate Calculation Table D-4: Facilities Table D-5: Cash Flow Analysis & Final Rate Calculation APPENDIX J: Stormwater Management Services .............................................. 165 Table J-1: Rate Calculation APPENDIX E: Parks & Recreation Services ......................................................... 77 Table J-2: Cash Flow Analysis & Final Rate Calculation Service Standards: Table E-1: Summary APPENDIX K: Water Distribution Services ......................................................... 174 Table E-2: Parkland Development Summary Table K-1: Rate Calculation Table E-3: Facilities Summary Table K-2: Cash Flow Analysis & Final Rate Calculation Table E-4: Equipment Summary Table E-5: Parkland Development Detail APPENDIX L: Urban Works Reserve Fund Retirement ...................................... 182 Table E-6: Parkland Development – Thames Valley Parkway Table L-1: UWRF Obligations to be Transferred to the Respective CSRF Table E-7: Parkland Development – Open Space SWM Block Pathways Table E-8: Parkland Development – Foot Bridges & Tunnels APPENDIX M: Lifecycle & Operating Cost Impacts ........................................... 185 Table E-9: Facilities – Arenas Table M-1: Hard Services Table E-10: Facilities – Community / Senior Centres Table M-2: Soft Services Table E-11: Facilities – Aquatics Table E-12: Facilities – Wading Pools & Spray Pads Table E-13: Facilities – Specialty City of London 2021 Development Charges Background Study Update - Draft June 2020 CHAPTER 1: Executive Summary City of London 2021 Development Charges Background Study Update - Draft June 2020 Page 1 Table of Contents CHAPTER 1: Executive Summary Development Charges (DCs) provide a method for municipalities to recover the capital costs of changes to the DCA through Bill 108. In addition to the legislative changes, additional changes were providing infrastructure and services associated with growth. In Ontario, the Development Charges limited in scope to the following: Act (DCA) governs the calculation of rates and the collection of DCs. Since the passing of the 2014 DC Study, the Province has amended the DCA through Bill 73 (Smart Growth for Our Communities • Federal and Provincial funding that has been committed to approved projects has been Act) which came into force and effect January 1, 2016. Some of the key changes resulting from Bill reallocated. These funding commitments were not approved until after the approval of the 73 include the following: 2019 DC Study; • A review of the growth / non-growth splits for Rapid Transit was a deferred matter from the • Transit has been removed from the required 10% statutory deduction; 2019 DC Study. For the 2021 DC Study Update, a review of the methodology and associated • The service standard calculation for Transit is now forward looking based on ridership, rather growth / non-growth splits was completed by IBI Consulting, in conjunction with Hemson than a backward looking historical service standard; Consulting, with the adjustments being incorporated into this Study; • The list of ineligible services for which DCs could not be imposed has changed so that • Project timing is aligned with the 2019 DC Study, with the exception of projects that have been municipal infrastructure for Waste Diversion can now be recovered from DCs; adjusted due to the completion of Environmental Assessments and/or studies, operational • Municipalities must consider the use of an Area Rating to reflect different needs for services in constraints (such as land acquisition), and Growth Management Implementation Strategy different areas; decisions that have been made to respond to growth; and • DCs must be collected at the time of the first building permit; • A technical financing adjustment contained in the DC model to better align with corporate • An asset management plan must be prepared to deal with all assets whose capital costs are schedules and market conditions. proposed to be funded under the DC By-law and demonstrate that all of the assets are financially sustainable over their full lifecycle; and The DCA also dictates that a background study be completed which demonstrates that the DC rates • A DC Background Study must be made available to the public at least 60 days prior to the were calculated in accordance with the requirements of the legislation. Included in the DC Study are: passing of the DC By-law and until the By-law expires or is repealed. • A forecast of the amount, type and location of population, employment, housing and non- These legislative requirements were incorporated
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