Development Charges Background Study City of Barrie Watson & Associates Economists Ltd. 905-272-3600 April 17, 2019 [email protected] Table of Contents Page Executive Summary ....................................................................................................... i 1. Introduction ...................................................................................................... 1-1 1.1 Purpose of this Document ....................................................................... 1-1 1.2 Summary of the Process ......................................................................... 1-2 1.3 Changes to the D.C.A.: Bill 73 ............................................................... 1-4 1.3.1 Area Rating ................................................................................ 1-4 1.3.2 Asset Management Plan for New Infrastructure ......................... 1-4 1.3.3 60-Day Circulation of D.C. Background Study ........................... 1-5 1.3.4 Timing of Collection of D.C.s ...................................................... 1-5 1.3.5 Transit ........................................................................................ 1-5 1.3.6 Other Changes ........................................................................... 1-6 2. Current City of Barrie Policy ........................................................................... 2-1 2.1 Schedule of Charges .............................................................................. 2-1 2.2 Services Covered ................................................................................... 2-2 2.3 Timing of D.C. Calculation and Payment ................................................ 2-3 2.4 Indexing .................................................................................................. 2-4 2.5 Redevelopment Allowance ..................................................................... 2-4 2.6 Exemptions ............................................................................................. 2-4 2.7 Discounts ................................................................................................ 2-5 3. Anticipated Development in the City of Barrie .............................................. 3-1 3.1 Requirement of the Act ........................................................................... 3-1 3.2 Basis of Population, Household and Non-Residential Gross Floor Area Forecast ......................................................................................... 3-1 3.3 Summary of Growth Forecast ................................................................. 3-1 4. The Approach to the Calculation of the Charge ........................................... 4-1 4.1 Introduction ............................................................................................. 4-1 4.2 Services Potentially Involved .................................................................. 4-1 Watson & Associates Economists Ltd. H:\barrie\2019 DC\Report\Final Report.docx Table of Contents (Cont’d) Page 4.3 Increase in the Need for Service ............................................................. 4-1 4.4 Local Service Policy ................................................................................ 4-7 4.5 Capital Forecast ...................................................................................... 4-7 4.6 Treatment of Credits ............................................................................... 4-8 4.7 Eligible Debt and Committed Excess Capacity ....................................... 4-8 4.8 Existing Reserve Funds .......................................................................... 4-8 4.9 Deductions ............................................................................................ 4-10 4.9.1 Reduction Required by Level of Service Ceiling ...................... 4-10 4.9.2 Reduction for Uncommitted Excess Capacity .......................... 4-11 4.9.3 Reduction for Benefit to Existing Development ........................ 4-11 4.9.4 Reduction for Anticipated Grants, Subsidies and Other Contributions ............................................................................ 4-12 4.9.5 The 10% Reduction ................................................................. 4-12 4.10 Municipal-wide vs. Area Rating ............................................................. 4-13 4.11 Allocation of Development .................................................................... 4-13 4.12 Asset Management ............................................................................... 4-13 4.13 Transit ................................................................................................... 4-14 5. D.C.-Eligible Cost Analysis by Service .......................................................... 5-1 5.1 Introduction ............................................................................................. 5-1 5.2 Service Levels and 10-Year Capital Costs for D.C. Calculation .............. 5-1 5.2.1 Transit Services ......................................................................... 5-1 5.2.2 Airport ........................................................................................ 5-5 5.2.3 Parking ....................................................................................... 5-7 5.2.4 Parks and Recreation ................................................................ 5-9 5.2.5 Library Services ....................................................................... 5-14 5.2.6 Administration .......................................................................... 5-16 5.2.7 Long-Term Care ....................................................................... 5-19 5.2.8 Paramedics .............................................................................. 5-21 5.2.9 Social Housing ......................................................................... 5-23 5.2.10 Waste Diversion ....................................................................... 5-25 5.3 Service Levels and 13-Year Capital Costs for Barrie’s D.C. Calculation ............................................................................................ 5-27 5.3.1 Protection ................................................................................. 5-27 5.4 Service Levels and 23-Year Capital Costs for Barrie’s D.C. Calculation ............................................................................................ 5-30 5.4.1 Services Related to a Highway ................................................ 5-30 5.4.2 Public Works Facilities and Fleet ............................................. 5-40 5.4.3 Water Facilities ........................................................................ 5-42 5.4.4 Water Facilities – Facilities Related Debt ................................. 5-44 5.4.5 Wastewater Facilities ............................................................... 5-46 Watson & Associates Economists Ltd. H:\barrie\2019 DC\Report\Final Report.docx Table of Contents (Cont’d) Page 5.4.6 Wastewater Facilities – Facilities Related Debt ....................... 5-49 5.5 Area Specific Capital Costs for Barrie’s D.C. Calculation – Former City Municipal Boundary Areas ............................................................. 5-51 5.5.1 Stormwater Drainage and Control Services ............................. 5-51 5.5.2 Water Services – Distribution Systems .................................... 5-59 5.5.3 Wastewater Services – Collection Systems ............................. 5-61 5.6 Area Specific Capital Costs for Barrie’s D.C. Calculation – Salem & Hewitt’s Secondary Plan Areas ............................................................. 5-64 5.6.1 Water Services – Distribution Systems .................................... 5-64 5.6.2 Wastewater Services – Collection Systems ............................. 5-67 6. Whiskey Creek Stormwater Management Works and Downstream Conveyance Works Area-Specific D.C. Background Study ......................... 6-1 6.1 Background ............................................................................................. 6-1 6.2 The Proposed Development Charge ...................................................... 6-4 6.2.1 Anticipated Development and the Increase in the Need for Service ....................................................................................... 6-4 6.2.2 Reductions in the Need for Service ............................................ 6-5 6.2.3 The D.C. Calculation .................................................................. 6-5 6.2.4 Long-Term Capital and Operating Cost Examination ............... 6-11 6.2.5 Asset Management Plan .......................................................... 6-11 6.2.6 Development Charge Rules ..................................................... 6-11 6.3 Detailed Cost Sharing Breakdown for Whiskey Creek S.W.M. Pond W5 (Pond A), Stolp Pond Improvements and Downstream Conveyance Works ............................................................................... 6-13 6.4 Detailed Costing for Whiskey Creek S.W.M. Pond W5 (Pond A) and Stolp Pond Improvements ..................................................................... 6-21 7. D.C. Calculation ............................................................................................... 7-1 8. D.C. Policy Recommendations and D.C. By-law Rules ................................ 8-1 8.1 Introduction ............................................................................................. 8-1 8.2 D.C.