Town of Grimsby Development Charge Background Study · 2018. 11. 5. · Watson & Associates...

$: Town of Grimsby Development Charge Background Study · 2018. 11. 5. · Watson & Associates Economists Ltd. H:\Grimsby\2016 DC\Report\DC Report.docx Executive Summary 1. The report$
Town of Grimsby Development Charge

Background Study

September 1, 2016

Watson & Associates Economists Ltd. H:\Grimsby\2016 DC\Report\DC Report.docx

Contents

Page

Executive Summary ......................................................................................................... i

1. Introduction ........................................................................................................ 1-1 1.1 Purpose of this Document ....................................................................... 1-1 1.2 Summary of the Process ......................................................................... 1-1 1.3 Changes to the Development Charges Act: Bill 73 ................................ 1-2

1.3.1 Area Rating .................................................................................. 1-2 1.3.2 Asset Management Plan for New Infrastructure ........................... 1-3 1.3.3 60-Day Circulation of D.C. Background Study ............................. 1-3

1.3.4 Timing of Collection of Development Charges ............................. 1-3 1.3.5 Other Changes ............................................................................. 1-4

2. Current Policies in the Town of Grimsby ........................................................... 2-1

2.1 Schedule of Charges .............................................................................. 2-1 2.2 Services Covered ................................................................................... 2-1 2.3 Timing of D.C. Calculation and Payment ................................................ 2-2

2.4 Indexing .................................................................................................. 2-2 2.5 Redevelopment Allowance ..................................................................... 2-2

2.6 Exemptions ............................................................................................. 2-3

3. Anticipated Development in the Town of Grimsby ............................................. 3-1 3.1 Requirements 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 Calculating the Charge ........................................................... 4-1

4.1 Introduction ............................................................................................. 4-1 4.2 Services Potentially Involved .................................................................. 4-1

4.3 Increase in the Need for Service ............................................................. 4-1 4.4 Local Service Policy ................................................................................ 4-1 4.5 Capital Forecast ...................................................................................... 4-6 4.6 Treatment of Credits ............................................................................... 4-7 4.7 Eligible Debt and Committed Excess Capacity ....................................... 4-7

4.8 Existing Reserve Funds .......................................................................... 4-8 4.9 Deductions .............................................................................................. 4-9

4.9.1 Reduction Required by Level of Service Ceiling – Non-prescribed services ...................................................................... 4-9

4.9.2 Reduction Required by Level of Service Ceiling – Prescribed services ...................................................................................... 4-10

4.9.3 Reduction for Uncommitted Excess Capacity ............................ 4-10

4.9.4 Reduction for Benefit to Existing Development .......................... 4-10 4.9.5 Reduction for Anticipated Grants, Subsidies and Other

Contributions .............................................................................. 4-11

4.9.6 The 10% Reduction .................................................................... 4-11 4.10 Municipal-Wide vs. Area Rating ............................................................ 4-12


4.11 Allocation of Development .................................................................... 4-12

5. Development Charge 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 Administration .............................................................................. 5-1

5.2.2 Indoor and Outdoor Recreation Services ..................................... 5-4 5.2.3 Library Services ........................................................................... 5-6 5.2.4 Parking Services .......................................................................... 5-9 5.2.5 Services Related to a Highway .................................................. 5-11 5.2.6 Fire Protection Services ............................................................. 5-16

5.3 Service Levels and Urban Buildout Capital Costs for Grimsby’s D.C. Calculation .................................................................................... 5-21 5.3.1 Stormwater Drainage and Control Services ............................... 5-21

5.3.2 Wastewater Services ................................................................. 5-21 5.3.3 Water Services ........................................................................... 5-22

6. Development Charge Calculation ...................................................................... 6-1

7. Development Charge Policy Recommendations and Development Charge By-law Rules...................................................................................................... 7-1

7.1 Introduction ............................................................................................. 7-1 7.2 Development Charge By-law Structure ................................................... 7-1 7.3 Development Charge By-law Rules ........................................................ 7-3

7.3.1 Payment in any Particular Case ................................................... 7-3 7.3.2 Determination of the Amount of the Charge ................................. 7-4

7.3.3 Application to Redevelopment of Land (Demolition and Conversion) .................................................................................. 7-4

7.3.4 Exemptions (full or partial) ........................................................... 7-5 7.3.5 Phasing in .................................................................................... 7-5

7.3.6 Timing of Collection ...................................................................... 7-5 7.3.7 Indexing ....................................................................................... 7-6

7.4 Other Development Charge By-law Provisions ....................................... 7-6

7.4.1 Categories of Services for Reserve Fund and Credit Purposes ...................................................................................... 7-6

7.4.2 By-law In-force Date ..................................................................... 7-6 7.4.3 Minimum Interest Rate Paid on Refunds and Charged for

Inter-Reserve Fund Borrowing ..................................................... 7-7 7.5 Other Recommendations ........................................................................ 7-7

8. By-law Implementation ...................................................................................... 8-1

8.1 Public Consultation Process ................................................................... 8-1 8.1.1 Introduction .................................................................................. 8-1 8.1.2 Public Meeting of Council ............................................................. 8-1 8.1.3 Other Consultation Activity ........................................................... 8-1

8.2 Anticipated Impact of the Charge on Development ................................. 8-2 8.3 Implementation Requirements ................................................................ 8-2

8.3.1 Introduction .................................................................................. 8-2

8.3.2 Notice of Passage ........................................................................ 8-3 8.3.3 By-law Pamphlet .......................................................................... 8-3


8.3.4 Appeals ........................................................................................ 8-4

8.3.5 Complaints ................................................................................... 8-4 8.3.6 Credits .......................................................................................... 8-4 8.3.7 Front-Ending Agreements ............................................................ 8-5 8.3.8 Severance and Subdivision Agreement Conditions ..................... 8-5

Appendix A – Background Information on Residential and Non-residential Growth Forecast ............................................................................................................A-1

Appendix B – Level of Service .....................................................................................B-1

Appendix C – Long Term Capital and Operating Cost Examination ............................ C-1

Appendix D – Development Charge Reserve Fund Policy .......................................... D-1

Appendix E – Local Service Policy ...............................................................................E-1

Appendix F – Asset Management Plan ........................................................................ F-1

Appendix G – Proposed Development Charge By-law ................................................ G-1


List of Acronyms and Abbreviations

Acronym Description

A.M.P. Asset Management Plan

D.C. Development Charge

D.C.A. Development Charges Act, 1997, as amended

E.S.A. Environmentally Sensitive Area

F.I.R. Financial Information Return

G.F.A. Gross floor area

M.T.O. Ministry of Transportation of Ontario

N.A.I.C.S. North American Classification System

O.M.B. Ontario Municipal Board

O.Reg. Ontario Regulation

P.O.A. Provincial Offences Act

P.P.U. Persons per unit

Q.E.W. Queen Elizabeth Way

R.O.W. Right of way

S.P.S. Sewage Pumping Station

sq.ft. Square footage

s.s. Subsection

Page (i)


Executive Summary

1. The report provided herein represents the Development Charge Background

Study for the Town of Grimsby required by the Development Charges Act, 1997

(D.C.A.), as amended. This report has been prepared in accordance with the

methodology required under the D.C.A. The contents include the following:

Chapter 1 – Overview of the legislative requirements of the Act;

Chapter 2 – Review of present D.C. policies of the Town;

Chapter 3 – Summary of the residential and non-residential growth

forecasts for the Town;

Chapter 4 – Approach to calculating the development charge;

Chapter 5 – Review of historical service standards and identification of

future capital requirements to service growth and related deductions and

allocations;

Chapter 6 – Calculation of the development charges;

Chapter 7 – Development charge policy recommendations and rules; and

Chapter 8 – By-law implementation.

2. Development Charges (D.C.) provide for the recovery of growth-related capital

expenditures from new development. The D.C.A. is the statutory basis to

recover these charges. The methodology is detailed in Chapter 4; a simplified

summary is provided below:

1) Identify amount, type and location of growth;

2) Identify servicing needs to accommodate growth;

3) Identify capital costs to provide services to meet the needs;

4) Deduct:

Grants, subsidies and other contributions;

Benefit to existing development;

Statutory 10% deduction (soft services);

Amounts in excess of 10-year historical service calculation;

D.C. reserve funds (where applicable);

5) Net costs are then allocated between residential and non-residential

benefit; and

Page (ii)


6) Net costs divided by growth to provide the D.C. charge.

3. The growth forecast (Chapter 3) on which the D.C. is based, projects the

following population, housing and non-residential floor area for the 10-year

(2016-2025), and urban buildout periods (2016-urban buildout) for purposes of

calculating the municipal-wide D.C.s.

4. On August 18, 2014, the Town of Grimsby passed By-law 14-84 under the

D.C.A. The by-law imposes the D.C. on residential and non-residential uses.

The Town is undertaking a D.C. public process and anticipates passing a new

by-law on November 7, 2016. The mandatory public meeting is scheduled for

October 17, 2016 after legislative notice is provided in accordance with the

D.C.A.

5. The Town’s municipal-wide D.C. currently has a single detached dwelling charge

of $13,981 and non-residential charge of $5.65 per square foot for fully serviced

properties. This report has undertaken an updated calculation of the charge

(presented in Schedule ES-1 for residential and non-residential) based on future

identified needs. The proposed calculated municipal-wide single-detached unit

charge is $16,859. The calculated municipal-wide non-residential charge is now

calculated on an industrial vs. non-industrial basis. The corresponding industrial

development charge is $3.32 per square foot and the non-industrial development

charge is $7.44 per square foot. These rates are submitted to Council for its

consideration.

6. The D.C.A. requires a summary be provided of the gross capital costs and the

net costs to be recovered over the life of the by-law. This calculation is provided

by service and is presented in Table 6-4. A summary of these costs is provided

below:

10 Year Urban Buildout

2016-20252016-Urban

Buildout

(Net) Population Increase 3,920 3,779

Residential Unit Increase 2,282 2,228

Non-Residential Gross Floor Area Increase (ft²) 623,213 609,108

Source: Watson & Associates Economists Ltd. Forecast 2016

Measure

Page (iii)


Hence, $19.79 million (or an average annual amount of $3.96 million) will need to

be contributed from taxes and rates, or other sources. Of this amount, $83,000

will be included in subsequent D.C. study updates to reflect the portion of capital

that benefits growth in the post period D.C. forecasts and the amounts that will

be included over time as the service standards adjust.

Based on the above table, the Town plans to spend $48.14 million over the next

five years, of which $28.36 million (59%) is recoverable from D.C.s. Of this net

amount, $23.92 million is recoverable from residential development and $4.44

million from non-residential development. It is noted also that any exemptions or

reductions in the charges would reduce this recovery further.

7. Considerations by Council – The background study represents the service needs

arising from residential and non-residential growth over the forecast periods, as

summarized in Chapter 3.

The following services are calculated based on the urban buildout (2016-urban

buildout) growth forecast:

Stormwater Drainage and Control Services;

Wastewater Services; and

Water Services.

All other services are calculated based on a 10-year (2016-2025) forecast.

These include:

Services Related to a Highway;

Fire Protection Services;

Other Transportation Services;

Indoor and Outdoor Recreation Services;

Library Services; and

Administration Studies.

Total gross expenditures planned over the next five years 48,144,146$

Less:

Benefit to existing development 9,015,460$

Post planning period benefit 83,413$

Ineligible re: Level of Service 7,088,450$

Mandatory 10% deduction for certain services 900,790$

Grants, subsidies and other contributions 2,700,000$

Net Costs to be recovered from development charges 28,356,033$

Page (iv)


Council will consider the findings and recommendations provided in the report

and, in conjunction with public input, approve such policies and rates it deems

appropriate. These directions will refine the draft D.C. by-law which is appended

in Appendix G. These decisions may include:

adopting the charges and policies recommended herein;

considering additional exemptions to the by-law; and

considering reductions in the charge by class of development (obtained by

removing certain services on which the charge is based and/or by a

general reduction in the charge).

Page (v)


TABLE ES-1

SCHEDULE OF DEVELOPMENT CHARGES

Single and Semi-

Detached Dwelling

Apartments - 2

Bedrooms +

Apartments -

Bachelor and 1

Bedroom

Other Multiples

Industrial

(per ft² of Gross

Floor Area)

Non-Industrial

(per ft² of Gross

Floor Area)

Municipal Wide Services:

Services Related to a Highway and Related Infrastructure 9,358 5,568 3,702 6,308 2.46 5.49

Parking Services 37 22 15 25 0.01 0.02

Fire Protection Services 782 465 309 527 0.20 0.46

Indoor and Outdoor Recreation Services 4,831 2,874 1,911 3,256 0.28 0.63

Library Services 771 459 305 520 0.04 0.10

Administration 197 117 78 133 0.05 0.12

Total Municipal Wide Services 15,976 9,505 6,320 10,769 3.04 6.82

Urban Services

Stormwater Drainage and Control Services 320 190 127 216 0.16 0.36

Wastewater Services - - - - - -

Water Services 563 335 223 379 0.12 0.26

Total Urban Services 883 525 350 595 0.28 0.62

GRAND TOTAL RURAL AREA 15,976 9,505 6,320 10,769 3.04 6.82

GRAND TOTAL URBAN AREA 16,859 10,030 6,670 11,364 3.32 7.44

Service

RESIDENTIAL NON-RESIDENTIAL

Page 1-1


1. Introduction

1.1 Purpose of this Document

This background study has been prepared pursuant to the requirements of the

Development Charges Act, 1997, as amended, (D.C.A.) (s.10) and, accordingly,

recommends new development charges (D.C.) and policies for the Town of Grimsby.

The Town retained Watson & Associates Economists Ltd. (Watson), to undertake the

D.C. study process in May, 2016. Watson worked with Town staff in preparing the D.C.

analysis and policy recommendations.

This D.C. background study, containing the proposed D.C. by-law, will be distributed to

members of the public in order to provide interested parties with sufficient background

information on the legislation, the study’s recommendations and an outline of the basis

for these recommendations.

This report has been prepared, in the first instance, to meet the statutory requirements

applicable to the Town’s D.C. background study, as summarized in Chapter 4. It also

addresses the requirement for “rules” (contained in Chapter 7) and the proposed by-law

to be made available as part of the approval process (included as Appendix G).

In addition, the report is designed to set out sufficient background on the legislation

(Chapter 4), Grimsby’s current D.C. policy (Chapter 2) and the policies underlying the

proposed by-law, to make the exercise understandable to those who are involved.

Finally, it addresses post-adoption implementation requirements (Chapter 8) which are

critical to the successful application of the new policy.

The Chapters in the report are supported by Appendices containing the data required to

explain and substantiate the calculation of the charge. A full discussion of the statutory

requirements for the preparation of a background study and calculation of a

development charge is provided herein.

1.2 Summary of the Process

The public meeting required under Section 12 of the D.C.A. is scheduled for October

17, 2016 in accordance with the Act. Its purpose is to present the study to the public

and to solicit public input. The meeting is also being held to answer any questions

regarding the study’s purpose, methodology and the proposed modifications to the

Town’s D.C.

Page 1-2


To date, the following process has taken place:

Data collection, staff review, engineering work, D.C. calculations and policy work

(May-August, 2016); and

Background study and draft D.C. by-law released to the public September 1,

2016 (to meet the requirement of the D.C.A., as amended which requires release

of the background report at least 60 days prior to by-law passage).

The process to be followed in finalizing the report and recommendations include:

Public meeting advertisement placed in newspaper(s) in accordance with the

requirements of the D.C.A. (September 1, 2016);

Public meeting of Council (October 17 2016);

Consideration of responses received prior to, at, or immediately following the

Public Meeting;

Council considers adoption of the background study and passage of the D.C. by-

law (November 7, 2016);

Notice in the newspaper (s) given of by-law passage within 20 days of passage;

Last day for by-law appeal is 40 days after by-law passage; and

Town makes pamphlet available (where by-law is not appealed) within 60 days

after the by-law comes into force.

1.3 Changes to the Development Charges Act: Bill 73

With the amendment of the D.C.A. (as a result of Bill 73 and O.Reg. 428/15), there are

a number of areas that must be addressed to ensure that the Town is in compliance

with the D.C.A., as amended. The following provides an explanation of the changes to

the Act that affect the Town’s Background Study and how they have been dealt with to

ensure compliance with the amended legislation.

1.3.1 Area Rating

Bill 73 has introduced two new sections where Council must consider the use of area

specific charges:

1) Section 2(9) of the Act now requires a municipality to implement area-specific

D.C.s for either specific services which are prescribed and/or for specific

municipalities which are to be regulated. (Note that at this time, no municipalities

or services are prescribed by the Regulations.)

Page 1-3


2) Section 10(2)c.1 of the D.C.A. requires that, “the development charges

background study shall include consideration of the use of more than one

development charge by-law to reflect different needs for services in different

areas.”

In regard to the first item, there are no services or specific municipalities identified in the

regulations which must be area rated. The second item requires Council to consider the

use of area rating.

1.3.2 Asset Management Plan for New Infrastructure

The new legislation now requires that a D.C. background study must include an Asset

Management Plan (s.10 (2) c.2). The asset management plan must deal with all assets

that are proposed to be funded, in whole or in part, by D.C.s. The current regulations

provide very extensive and specific requirements for the asset management plan

related to transit services; however, they are silent with respect to how the asset

management plan is to be provided for all other services. As part of any asset

management plan, the examination should be consistent with the municipality’s existing

assumptions, approaches and policies on asset management planning. This

examination may include both qualitative and quantitative measures such as examining

the annual future lifecycle contributions needs (discussed further in Appendix F of this

report).

1.3.3 60-Day Circulation of D.C. Background Study

Previously the legislation required that a D.C. background study be made available to

the public at least two weeks prior to the public meeting. The amended legislation now

provides that the D.C. background study must be made available to the public (including

posting on the municipal website) at least 60 days prior to passage of the D.C. by-law.

No other changes were made to timing requirements for such things as notice of the

public meeting and notice of by-law passage.

This D.C. study is being provided to the public on September 1, 2016 to ensure the new

requirements for release of the study is met.

1.3.4 Timing of Collection of Development Charges

The D.C.A. has been refined by Bill 73 to require that D.C.s are collected at the time of

the first building permit. For the majority of development, this will not impact the Town’s

present process. However, there may be instances where several building permits are

to be issued and either the size of the development or the uses will not be definable at

Page 1-4


the time of the first building permit. In these instances, the Town may enter into a

delayed payment agreement in order to capture the full development.

1.3.5 Other Changes

It is also noted that a number of other changes were made through Bill 73 and O.Reg.

428/15 including changes to the way in which Transit D.C. service standards are

calculated, the inclusion of Waste Diversion and the ability for collection of additional

levies; however, these sections do not impact the Town’s D.C.

Page 2-1


2. Current Policies in the Town of Grimsby

2.1 Schedule of Charges

On August 18, 2014, the Town of Grimsby passed By-law 14-84 under the D.C.A. This

by-law imposes D.C.s for residential and non-residential uses. The table below

provides the rates currently in effect, as at September 1, 2016.

2.2 Services Covered

The following services are covered under By-law 14-84, as amended:

Municipal-wide Services:

Roads and Related;

Other Transportation Services;

Fire Protection Services;

Outdoor Recreation Services;

Indoor Recreation Services;

Library Services; and

Administration.

Non-Residential

ServiceSingle & Semi

DetachedMultiples

Apartments with

>= 2 Bedrooms

Apartments with

< 2 Bedroomsper ft²

Municipal Wide Services

Roads and Related 5,436 3,507 3,296 2,192 2.80

Other Transportation Services 35 22 21 14 0.02

Fire Protection Services 592 382 359 239 0.31

Outdoor Recreation Services 2,549 1,645 1,546 1,028 0.33

Indoor Recreation Services 1,374 886 833 554 0.17

Library Services 622 401 378 250 0.08

Administration 292 189 178 118 0.15

Total Municipal-Wide Services 10,900 7,033 6,611 4,395 3.87

Urban Services

Stormwater Drainage and Control Services 423 273 256 170 0.64

Wastewater Services 1,632 1,053 990 658 0.69

Water Services 1,096 707 665 442 0.46

Total Urban Services 3,151 2,033 1,912 1,270 1.81

Grand Total Rural Area 10,900 7,033 6,611 4,395 3.87

Grand Total Urban Area 14,051 9,066 8,522 5,666 5.68

TABLE 2-1

TOWN OF GRIMSBY

DEVELOPMENT CHARGES

AS AT SEPTEMBER 1, 2016

Residential

Page 2-2


Urban Services:

Stormwater Drainage and Control Services;

Wastewater Services; and

Water Services.

2.3 Timing of D.C. Calculation and Payment

Development charges applicable to residential and non-residential development are

calculated, payable and collected as of the date a building permit is issued.

2.4 Indexing

Rates shall be indexed on September 1st each year, commencing from by-law passage,

in accordance with the Statistics Canada Quarterly, Construction Price Statistics, for the

most recent year-over-year period.

2.5 Redevelopment Allowance

As a result of the redevelopment of land, a building or structure existing on the same

land within 48 months prior to the date of payment of development charges in regard to

such redevelopment was, or is to be demolished, in whole or in part, or converted from

one principal use to another principal use on the same land, in order to facilitate the

redevelopment, the development charges otherwise payable with respect to such

redevelopment shall be reduced by the following amounts:

(a) in the case of a residential building or structure, or in the case of a mixed- use

building or structure, the residential uses in the mixed-use building or structure,

an amount calculated by multiplying the applicable development charge under

subsections 3.6 and 3.7 and of this by-law by the number, according to type, of

dwelling units that have been or will be demolished or converted to another

principal use; and provided that such amounts shall not exceed, in total, the

amount of the development charges otherwise payable with respect to the

redevelopment.

Page 2-3


2.6 Exemptions

The following non-statutory exemptions are provided under By-law 14-84:

Development creating or adding an accessory use or accessory structure not

exceeding 10 square metres of G.F.A.; and

Bona fide farm (non-residential) buildings, including wholesale greenhouse

facilities and structures.

Page 3-1


3. Anticipated Development in the Town of Grimsby

3.1 Requirements of the Act

Chapter 4 provides the methodology for calculating a development charge as per the

D.C.A. Figure 4-1 presents this methodology graphically. It is noted in the first box of

the schematic that in order to determine the D.C. that may be imposed, it is a

requirement of Section 5 (1) of the D.C.A. that “the anticipated amount, type and

location of development, for which D.C.s can be imposed, must be estimated.”

The growth forecast contained in this chapter (with supplemental tables in Appendix A)

provides for the anticipated development for which the Town of Grimsby will be required

to provide services over a 10-year time horizon (i.e. anticipated timing of urban

buildout).

3.2 Basis of Population, Household and Non-Residential Gross

Floor Area Forecast

The D.C. growth forecast has been developed by Watson & Associates Economists Ltd.

In compiling the growth forecast, the following information sources were also consulted

to help assess residential and non-residential development potential for the Town over

the forecast period; including

The Town of Grimsby 2012 Official Plan (approved by the Ontario Municipal

Board, May, 2012);

The Town of Grimsby 2014 Development Charge (D.C.) Study, prepared by

Watson & Associates Economists Ltd.;

2011 Census data;

Historical residential and non-residential building permit activity; and

Discussions with staff regarding potential residential and non-residential

development opportunities for the Town.

3.3 Summary of Growth Forecast

A detailed analysis of the residential and non-residential growth forecasts is provided in

Appendix A. The discussion provided herein summarizes the anticipated growth for the

Town and describes the basis for the forecast. The results of the residential growth

forecast analysis are summarized in Figure 3-1 below, and Schedule 1 in Appendix A.

Page 3-2


Figure 3-1 Household Formation-based Population and Household Forecast Model

Page 3-3


As identified in Table 3-1 and Schedule 1, the Town’s population is anticipated to reach

approximately 31,200 by 2026. This represents an increase of approximately 3,920

persons over the 10-year forecast period. The population forecast summarized in

Schedule 1 excludes the net Census undercount, which is estimated at approximately

4%. The Census undercount represents the net number of persons missed during

Census enumeration. In calculating the D.C. for the Town of Grimsby, the net Census

undercount has been excluded from the growth forecast. Accordingly, all references

provided here after to the population forecast exclude the net Census undercount.

Provided below is a summary of the key assumptions and findings regarding the Town

of Grimsby D.C. growth forecast update.

1. Unit Mix (Appendix A – Schedules 1 through 6)

The forecast unit mix for the Town was derived from active development

applications (as per Schedule 5), historical development activity (as per

Schedule 6), and discussions with planning staff regarding anticipated

development trends.

Based on the above, the 10-year (2016-2026) household growth forecast

is comprised of 10% low-density (single detached and semi-detached),

19% medium-density (multiples except apartments) and 71% high-density

(apartments) development.

2. Geographic Location of Residential Development (Appendix A – Schedule 2)

Schedule 2 summarizes the anticipated amount, type and location of

development for the Town of Grimsby by development location. In

accordance with forecast demand and available land supply, housing

growth has been allocated to the following areas over the 2016 to 2026

forecast period:

o Urban – 98%

o Rural – 2%.

Page 3-4


Table 3-1 Town of Grimsby

Residential Growth Forecast Summary

Singles & Semi-

Detached

Multiple

Dwellings2 Apartments

3 OtherTotal

Households

Person Per

Unit (PPU)

Mid 1996 19,585 20,260 5,520 645 650 10 6,825 2.87

Mid 2001 21,297 22,030 6,095 865 620 5 7,585 2.81

Mid 2006 23,937 24,760 6,525 1,420 765 30 8,740 2.74

Mid 2011 25,325 26,200 7,070 1,645 860 40 9,615 2.63

Mid 2016 27,281 28,220 7,462 2,115 983 40 10,600 2.57

Mid 2021 29,327 30,330 7,580 2,342 1,810 40 11,772 2.49

Mid 2026 (Buildout) 31,201 32,270 7,692 2,557 2,593 40 12,882 2.42

Mid 1996 - Mid 2001 1,712 1,770 575 220 -30 -5 760

Mid 2001 - Mid 2006 2,640 2,730 430 555 145 25 1,155

Mid 2006 - Mid 2011 1,388 1,440 545 225 95 10 875

Mid 2011 - Mid 2016 1,956 2,020 392 470 123 0 985

Mid 2016 - Mid 2021 2,046 2,110 118 227 827 0 1,172

Mid 2016 - Mid 2026 (Buildout) 3,920 4,050 230 442 1,610 0 2,282

Source: Watson & Associates Economists Ltd., 2016.

1. Census Undercount estimated at approximately 4%. Note: Population Including the Undercount has been rounded.

2. Includes townhomes and apartments in duplexes.

3. Includes bachelor, 1 bedroom and 2 bedroom+ apartments.

Population

(Excluding

Census

Undercount)

Population

(Including

Census

Undercount)¹

Year

Housing Units

Page 3-5


3. Planning Period

Short-term and longer-term time horizons are required for the D.C.

process. The D.C.A. limits the planning horizon for certain services, such

as parks, recreation and libraries, to a 10-year planning horizon. Roads

and fire services utilize a longer planning period.

4. Population in New Units (Appendix A – Schedules 2 through 5)

The number of permanent housing units to be constructed in the Town of

Grimsby during the 10-year forecast period is presented on Figure 3-2.

Over the 10-year forecast period, the Town is anticipated to average 228

new housing units per year.

Population in new units is derived from Schedules 3 and 4, which

incorporate historical development activity, anticipated units (refer to unit

mix discussion) and average persons per unit by dwelling type for new

units.

Schedule 7a summarizes the average number of persons per unit (P.P.U.)

for the new housing units by age and type of dwelling based on a 2011

custom Census data for the Town. Due to data limitations, high density

P.P.U.s were derived from the Niagara Region as outlined in Schedule 7b.

The total calculated P.P.U. for all density types has been adjusted to

account for the downward P.P.U. trend which has been recently

experienced in both new and older units, largely due to the aging of the

population. Adjusted 10-year average P.P.U.s by dwelling type are as

follows:

o Low density: 3.16

o Medium density: 2.13

o High density: 1.59.

Page 3-6


Figure 3-2

73

209

152

116

185

230

78

290

255

132

232 235 235 235 235

222 222 222 222 222

0

50

100

150

200

250

300

350

Ho

us

ing

Un

its

Years

HOUSING FORECAST¹

Historical Low Density Medium Density High Density Historical Average

Source: Historical housing activity (2006-2015) based on Statistics Canada building permits, Catalogue 64-001-XIB

Page 3-7


5. Existing Units and Population Change (Appendix A – Schedules 3 and 4)

Existing households as of 2016 are based on the 2011 Census, plus

estimated residential units constructed between 2011 and 2015, assuming

a 6-month lag between construction and occupancy (refer to Schedule 2).

The decline in average occupancy levels for existing housing units is

calculated in Schedules 3 through 4, by aging the existing population over

the forecast period. The forecast population decline in existing

households over the 2016 to 2026 forecast period is estimated at

approximately 300.

6. Employment (Appendix A – Schedules 9a through 11)

The employment projection is largely based on the activity rate method,

which is defined as the number of jobs in a Town divided by the number of

residents. Key employment sectors include primary, industrial,

commercial/population-related, institutional, and work-at-home, which are

considered individually below.

The Town’s 20111 employment base by place of work is outlined in

Schedule 9a. The 2011 employment base is comprised of the following

sectors:

o 630 primary (approx. 7%);

o 1,180 work-at-home employment (approx. 14%);

o 1,790 industrial (approx. 21%);

o 3,610 commercial/population-related (approx. 42%);

o 1,290 institutional (approx. 15%); and

The 2011 employment base by usual place of work, including work-at-

home, is approximately 8,500 jobs. An additional 810 employees have

been identified for the Town in 2011 that have no fixed place of work

(N.F.P.O.W.).2 The 2011 employment base, including N.F.P.O.W., totals

approximately 9,310.

Schedule 9b, Appendix A, summarizes the employment forecast,

excluding work-at-home employment and N.F.P.O.W. employment, which

1 2011 employment based on Statistics Canada 2011 Place of Work employment dataset. 2 Statistics Canada defines "No Fixed Place of Work" (N.F.P.O.W.) employees as, "persons who do not go from home to the same work place location at the beginning of each shift. Such persons include building and landscape contractors, travelling salespersons, independent truck drivers, etc.

Page 3-8


is the basis for the D.C. employment forecast. The impact on municipal

services from work-at-home employees have already been included in the

population forecast. The impacts of municipal services related to

N.F.P.O.W. employees have largely been included in the employment

forecast by usual place of work (i.e. employment and G.F.A. in the retail

and accommodation sector generated from N.F.P.O.W. construction

employment). Furthermore, since these employees have no fixed work

address, they cannot be captured in the non-residential gross floor area

(G.F.A.) calculation. Accordingly, work-at-home and N.F.P.O.W.

employees have been removed from the D.C. employment forecast and

calculation.

Total employment for the Town of Grimsby (excluding work-at-home and

N.F.P.O.W. employment) is anticipated to reach approximately 8,945 by

2026. This represents an employment increase of 935 additional jobs

over the 10-year forecast periods.

7. Non-Residential Sq.ft. Estimates (Gross Floor Area (G.F.A.)), Appendix A –

Schedule 9b)

Square footage estimates were calculated in Schedule 9b based on the

following employee density assumptions:1

o 1,300 sq.ft. per employee for industrial;

o 550 sq.ft. per employee for commercial/population-related; and

o 700 sq.ft. per employee for institutional employment.

The Town-wide incremental non-residential G.F.A. increase is anticipated

to be 623,200 sq.ft. over the 10-year forecast period.

In terms of percentage growth, the long-term incremental G.F.A. forecast

by sector is broken down as follows:

o industrial – approx. 24%;

o commercial/population-related – approx. 58%; and

o institutional – approx. 18%.

1 Based on Watson & Associates Economists Ltd. employment surveys across eastern Ontario.

Page 4-1


4. The Approach to Calculating the Charge

4.1 Introduction

This chapter addresses the requirements of s.s.5(1) of the D.C.A., with respect to the

establishment of the need for service which underpins the D.C. calculation. These

requirements are illustrated schematically in Figure 4-1.

4.2 Services Potentially Involved

Table 4-1 lists the full range of Town service categories which are provided within the

Town.

A number of these services are defined in s.s.2(4) of the D.C.A. as being ineligible for

inclusion in D.C. These are shown as “ineligible” on Table 4-1. Two ineligible costs

defined in s.s.5(3) of the D.C.A. are “computer equipment” and “rolling stock with an

estimated useful life of (less than) seven years...” In addition, local roads are covered

separately under subdivision agreements and related means (as are other local

services). Services which are potentially eligible for inclusion in the Town’s D.C. are

indicated with a “Yes.”

4.3 Increase in the Need for Service

The D.C. calculation commences with an estimate of “the increase in the need for

service attributable to the anticipated development,” for each service to be covered by

the by-law. There must be some form of link or attribution between the anticipated

development and the estimated increase in the need for service. While the need could

conceivably be expressed generally in terms of units of capacity, s.s.5(1)3, which

requires that Council indicate that it intends to ensure that such an increase in need will

be met, suggests that a project-specific expression of need would be most appropriate.

4.4 Local Service Policy

Some of the need for services generated by additional development consists of local

services related to a plan of subdivision. As such, they will be required as a condition of

subdivision agreements or consent conditions.

Page 4-2


Figure 4-1 The Process of Calculating a Development Charge under the D.C.A., as amended

Page 4-3


Table 4-1 Categories of Municipal Services to be Addressed as Part of the Calculation

Categories of Municipal Services

Eligibility for

Inclusion in the D.C.

Calculation

Service Components

Maximum Potential

D.C. Recovery

%

1. Services Related to a Highway and Related Infrastructure

Yes Yes Yes No Yes Yes Yes

1.1 Arterial roads 1.2 Collector roads 1.3 Bridges, culverts and roundabouts 1.4 Local municipal roads 1.5 Traffic signals 1.6 Sidewalks and streetlights 1.7 Active transportation

100 100 100

0 100 100 100

2. Other Transport-ation Services

n/a n/a n/a Yes Yes Yes n/a n/a

2.1 Transit vehicles & facilities 2.2 Other transit infrastructure 2.3 Municipal parking spaces - indoor 2.4 Municipal parking spaces - outdoor 2.5 Works yards 2.6 Rolling stock1 2.7 Ferries 2.8 Airport

100 100 90 90

100 100 90 90

3. Stormwater Drainage and Control Services

No Yes No No

3.1 Main channels and drainage trunks 3.2 Channel connections 3.3 Retention/detention ponds 3.4 Monitoring programs

100 100 100 100

4. Fire Protection Services

Yes Yes

Yes

4.1 Fire stations 4.2 Fire pumpers, aerials and rescue

vehicles 4.3 Small equipment and gear

100 100

100

5. Outdoor Recreation Services (i.e. Parks and Open Space)

Ineligible

Yes

Yes Yes

Yes

Yes

5.1 Acquisition of land for parks, woodlots and E.S.A.s

5.2 Development of area municipal parks

5.3 Development of district parks 5.4 Development of municipal-wide

parks 5.5 Development of special purpose

parks 5.6 Parks rolling stock1 and yards

0

90

90

90

90 90

1with 7+ year life time

Page 4-4



Eligibility for


Calculation

Service Components

Maximum Potential

D.C. Recovery

%

6. Indoor Recreation Services

Yes

Yes

6.1 Arenas, indoor pools, fitness facilities, community centres, etc. (including land)

6.2 Recreation vehicles and equipment1

90

90

7. Library Services

Yes

No Yes

7.1 Public library space (incl. furniture and equipment)

7.2 Library vehicles¹ 7.3 Library materials

90

90 90

8. Electrical Power Services

Ineligible Ineligible Ineligible

8.1 Electrical substations 8.2 Electrical distribution system 8.3 Electrical system rolling stock1

0 0 0

9. Provision of Cultural, Entertain-ment and Tourism Facilities and Convention Centres

Ineligible

Ineligible

9.1 Cultural space (e.g. art galleries, museums and theatres)

9.2 Tourism facilities and convention centres

0

0

10. Waste-water Services

n/a Yes n/a No

10.1 Treatment plants 10.2 Sewage trunks 10.3 Local systems 10.4 Vehicles and equipment

100 100

0 100

11. Water Supply Services

n/a Yes n/a No

11.1 Treatment plants 11.2 Distribution systems 11.3 Local systems 11.4 Vehicles and equipment

100 100

0 100

12. Waste Manage-ment Services

Ineligible

Ineligible n/a

n/a

12.1 Collection, transfer vehicles and equipment (solid waste)

12.2 Landfills and other disposal facilities 12.3 Waste diversion vehicles and

equipment 12.4 Other waste diversion facilities

0

0 90

90


Page 4-5



Eligibility for


Calculation

Service Components

Maximum Potential

D.C. Recovery

%

13. Police Services

n/a n/a n/a

13.1 Police detachments 13.2 Police rolling stock1 13.3 Small equipment and gear

100 100 100

14. Homes for the Aged

n/a 14.1 Homes for the aged space 90

15. Child Care n/a 15.1 Child care space 90

16. Health n/a n/a

16.1 Health department space 16.2 Health department vehicles¹

90 90

17. Social Housing

n/a 17.1 Social housing space 90

18. Provincial Offences Act (P.O.A.)

n/a 18.1 P.O.A. space 90

19. Social Services

n/a 19.1 Social service space 90

20. Ambulance n/a n/a

20.1 Ambulance station space 20.2 Vehicles1

90 90

21. Hospital Provision

Ineligible 21.1 Hospital capital contributions 0

22. Provision of Head-quarters for the General Admin-istration of Munici-palities and Area Municipal Boards

Ineligible Ineligible Ineligible

22.1 Office space 22.2 Office furniture 22.3 Computer equipment

0 0 0


Page 4-6



Eligibility for


Calculation

Service Components

Maximum Potential

D.C. Recovery

%

23. Other Services

Yes

Yes

23.1 Studies in connection with acquiring buildings, rolling stock, materials and equipment, and improving land2 and facilities, including the D.C. background study cost

23.2 Interest on money borrowed to pay for growth-related capital

0-100

0-100

1with a 7+ year life time 2same percentage as service component to which it pertains

Eligibility for Inclusion in the

D.C. Calculation

Description

Yes Municipality provides the service – service has been included in the D.C. calculation.

No Municipality provides the service – service has not been included in the D.C. calculation.

n/a Municipality does not provide the service.

Ineligible Service is ineligible for inclusion in the D.C. calculation.

4.5 Capital Forecast

Paragraph 7 of s.s.5(1) of the D.C.A. requires that “the capital costs necessary to

provide the increased services must be estimated.” The Act goes on to require two

potential cost reductions and the Regulation sets out the way in which such costs are to

be presented. These requirements are outlined below.

These estimates involve capital costing of the increased services discussed above.

This entails costing actual projects or the provision of service units, depending on how

each service has been addressed.

The capital costs include:

a) costs to acquire land or an interest therein (including a leasehold interest);

b) costs to improve land;

c) costs to acquire, lease, construct or improve buildings and structures;

Page 4-7


d) costs to acquire, lease or improve facilities, including rolling stock (with a useful

life of 7 or more years), furniture and equipment (other than computer

equipment), materials acquired for library circulation, reference or information

purposes;

e) interest on money borrowed to pay for the above-referenced costs;

f) costs to undertake studies in connection with the above-referenced matters; and

g) costs of the D.C. background study.

In order for an increase in need for service to be included in the D.C. calculation,

Council must indicate “...that it intends to ensure that such an increase in need will be

met” (s.s.5 (1)3). This can be done if the increase in service forms part of a Council-

approved Official Plan, capital forecast or similar expression of the intention of Council

(O.Reg. 82/98 s.3). The capital program contained herein reflects the Town’s approved

and proposed capital budgets and master servicing/needs studies.

4.6 Treatment of Credits

Section 8 para. 5 of O.Reg. 82/98 indicates that a development charge background

study must set out “the estimated value of credits that are being carried forward relating

to the service.” s.s.17 para. 4 of the same Regulation indicates that “...the value of the

credit cannot be recovered from future development charges,” if the credit pertains to an

ineligible service. This implies that a credit for eligible services can be recovered from

future D.C.s. As a result, this provision should be made in the calculation, in order to

avoid a funding shortfall with respect to future service needs. There are no current

credit obligations to be included in the D.C. calculations at this time.

4.7 Eligible Debt and Committed Excess Capacity

Section 66 of the D.C.A. states that, for the purposes of developing a D.C. by-law, a

debt incurred with respect to an eligible service may be included as a capital cost,

subject to any limitations or reductions in the Act. Similarly, s.18 of O.Reg. 82/98

indicates that debt with respect to an ineligible service may be included as a capital

cost, subject to several restrictions.

In order for such costs to be eligible, two conditions must apply. First, they must have

funded excess capacity which is able to meet service needs attributable to the

anticipated development. Second, the excess capacity must be “committed,” that is,

either before or at the time it was created, Council must have expressed a clear

intention that it would be paid for by D.C.s or other similar charges; for example, this

may have been done as part of previous development charge processes. It is noted

Page 4-8


that the growth-related debt to which the principal and interest costs need to be

recovered, has been included within the capital detail sheet for Indoor and Outdoor

Recreation Services, Fire Protection Services, and Services Related to a Highway.

4.8 Existing Reserve Funds

Section 35 of the D.C.A. states that:

“The money in a reserve fund established for a service may be spent only for capital costs determined under paragraphs 2 to 8 of subsection 5(1).”

There is no explicit requirement under the D.C.A. calculation method set out in s.s.5(1)

to net the outstanding reserve fund balance as part of making the D.C. calculation;

however, s.35 does restrict the way in which the funds are used in future.

For services which are subject to a per capita based, service level “cap,” the reserve

fund balance should be applied against the development-related costs for which the

charge was imposed, once the project is constructed (i.e. the needs of recent growth).

This cost component is distinct from the development-related costs for the next 10-year

period, which underlie the D.C. calculation herein.

The alternative would involve the Town spending all reserve fund monies prior to

renewing each by-law, which would not be a sound basis for capital budgeting. Thus,

the Town will use these reserve funds for the Town’s cost share of applicable

development-related projects, which are required but have not yet been undertaken, as

a way of directing the funds to the benefit of the development which contributed them

(rather than to future development, which will generate the need for additional facilities

directly proportionate to future growth).

Page 4-9


The Town’s D.C. Reserve Fund Balances by service as of December 31, 2015, along

with commitments for capital works in progress, are as follows:

4.9 Deductions

The D.C.A. potentially requires that five deductions be made to the increase in the need

for service. These relate to:

the level of service ceiling;

uncommitted excess capacity;

benefit to existing development;

anticipated grants, subsidies and other contributions; and

10% reduction for certain services.

The requirements behind each of these reductions are addressed as follows:

4.9.1 Reduction Required by Level of Service Ceiling – Non-prescribed services

This is designed to ensure that the increase in need included in 4.3 are based upon the

average level of service provided in the Municipality over the 10-year period

immediately preceding the preparation of the background study.

O.Reg. 82.98 (s.4) goes further to indicate that “…both the quantity and quality of a

service shall be taken into account in determining the level of service and the average

level of service.”

In many cases, this can be done by establishing a quantity measure in terms of units as

floor area, land area or road length per capita and a quality measure, in terms of the

average cost of providing such units based on replacement costs, engineering

standards or recognized performance measurement systems, depending on

Service Dec. 31/15 Commitments

Adjusted Dec.

31/15

Services Related to a Highway $1,433,068.93 $108,611.00 $1,324,457.93

Other Transportation Services $27,933.07 $27,933.07

Parking $66,619.16 $66,619.16

Fire Protection Services $430,788.08 $430,788.08

Indoor and Outdoor Recreation Services $702,830.55 $702,830.55

Library Services $603,492.70 $603,492.70

Administration $401,925.13 $401,925.13

Stormwater Drainage and Control Services $298,903.20 $298,903.20

Wastewater Services $820,896.74 $111,896.74 $709,000.00

Water Services $486,986.70 $62,874.26 $424,112.44

Total $5,273,444.26 $283,382.00 $4,990,062.26

Page 4-10


circumstances. When the quantity and quality factor are multiplied together, they

produce a measure of the level of service, which meets the requirements of the Act, i.e.

cost per unit.

The average service level calculation sheets for each service component in the D.C.

calculation are set out in Appendix B.

4.9.2 Reduction Required by Level of Service Ceiling – Prescribed services

Prescribed services (currently only for transit) are based upon the planned level of

service over the 10-year period immediately following the preparation of the background

study. The method of calculating the service standard for prescribed services is

prescribed in the regulations, as amended.

For the purposes of section 5, the estimate for the increase in the need for a prescribed

service shall not exceed the planned level of service over the 10-year period

immediately following the preparation of the background study required under section

10. 2015, c. 26, s. 4.

4.9.3 Reduction for Uncommitted Excess Capacity

Paragraph 5 of s.s.5(1) requires a deduction from the increase in the need for service

attributable to the anticipated development that can be met using the Town’s “excess

capacity,” other than excess capacity which is “committed” (discussed above in 4.6).

Based on O.Reg. 82/98, s.5, for the purposes of paragraph 5 of subsection 5 (1) of the

Act, “Excess capacity” is uncommitted excess capacity unless, either before or at the

time the excess capacity was created, the council of the municipality expressed a clear

intention that the excess capacity would be paid for by D.C.s or other similar charges.

4.9.4 Reduction for Benefit to Existing Development

This step involves a further reduction in the need, by the extent to which such an

increase in service would benefit existing development. The level of services cap in

4.9.1 (and 4.9.2) is related, but is not the identical requirement. Sanitary, storm and

water trunks are highly localized to growth areas and can be more readily allocated in

this regard than other services such as services related to a highway, which do not have

a fixed service area.

Where existing development has an adequate service level which will not be tangibly

increased by an increase in service, no benefit would appear to be involved. For

example, where expanding existing library facilities simply replicates what existing

Page 4-11


residents are receiving, they receive very limited (or no) benefit as a result. On the

other hand, where a clear existing service problem is to be remedied, a deduction

should be made accordingly.

In the case of services such as recreation facilities, community parks, libraries, etc., the

service is typically provided on a Municipal-wide system basis. For example, facilities of

the same type may provide different services (i.e. leisure pool vs. competitive pool),

different programs (i.e. hockey vs. figure skating) and different time availability for the

same service (i.e. leisure skating available on Wednesday in one arena and Thursday in

another). As a result, residents will travel to different facilities to access the services

they want at the times they wish to use them, and facility location generally does not

correlate directly with residence location. Even where it does, displacing users from an

existing facility to a new facility frees up capacity for use by others and generally results

in only a very limited benefit to existing development. Further, where an increase in

demand is not met for a number of years, a negative service impact to existing

development is involved for a portion of the planning period.

4.9.5 Reduction for Anticipated Grants, Subsidies and Other Contributions

This step involves reducing the capital costs necessary to provide the increased

services by capital grants, subsidies and other contributions (including direct developer

contributions required due to the local service policy) made or anticipated by Council

and in accordance with various rules such as the attribution between the share related

to new vs. existing development. That is, some grants and contributions may not

specifically be applicable to growth or where Council targets fundraising as a measure

to offset impacts on taxes (O.Reg. 82.98 s.6).

4.9.6 The 10% Reduction

Paragraph 8 of s.s.5(1) of the D.C.A. requires that, “the capital costs must be reduced

by 10 percent.” This paragraph does not apply to water supply services, waste water

services, storm water drainage and control services, services related to a highway,

police, and fire protection services. The primary services to which the 10% reduction

does apply include services such as parks, recreation, libraries, health, childcare/social

services, ambulance, homes for the aged and transit. The 10% is to be netted from the

capital costs necessary to provide the increased services, once the other deductions

have been made, as per the infrastructure costs sheets in Chapter 5.

Page 4-12


4.10 Municipal-Wide vs. Area Rating

This step involves determining whether all of the subject costs are to be recovered on a

uniform municipal-wide basis or whether some or all are to be recovered on an area-

specific basis. Under the amended D.C.A., it is now mandatory to “consider” area-rating

of services (providing charges for specific areas and services), however, it is not

mandatory to implement area-rating.

4.11 Allocation of Development

This step involves relating the costs involved to anticipated development for each period

under consideration and using allocations between residential and non-residential

development and between one type of development and another, to arrive at a schedule

of charges.

Page 5-1


5. Development Charge Eligible Cost Analysis by Service

5.1 Introduction

This chapter outlines the basis for calculating eligible costs for the D.C.s to be applied

on a uniform basis. In each case, the required calculation process set out in s.5(1)

paragraphs 2 to 8 in the D.C.A. and described in Chapter 4, was followed in determining

D.C. eligible costs.

The nature of the capital projects and timing identified in the Chapter reflects Council’s

current intention. Over time, however, Town projects and Council priorities change and

accordingly, Council’s intentions may alter and different capital projects (and timing)

may be required to meet the need for services required by new growth.

5.2 Service Levels and 10-Year Capital Costs for D.C. Calculation

This section evaluates the development-related capital requirements for all of the

services over a 10-year planning period. Each service component is evaluated on two

format sheets: the average historical 10-year level of service calculation (see Appendix

B), which “caps” the D.C. amounts; and, the infrastructure cost calculation, which

determines the potential D.C. recoverable cost.

5.2.1 Administration

The D.C.A. permits the inclusion of studies undertaken to facilitate the completion of the

Town’s capital works program. The Town has the ability to make a provision for the

inclusion of new studies undertaken to facilitate this D.C. process, as well as other

studies which benefit growth (in whole or in part). The list of studies included are as

follows:

2016 Development Charge Update Study;

2021 Development Charge Study;

Servicing Studies;

Sub-watershed Studies;

Parks, Recreation, and Fire Master Plans;

Transportation Study;

Official Plan Update; and

Zoning By-law.

Page 5-2


The gross capital cost of these studies total $1,007,700. A deduction of $230,910 has

been made for to recognize the amount that benefits existing development. With a

reserve fund adjustment of $401,925 and after the mandatory 10% deduction, the net

growth-related capital cost is $325,848. This amount has been included in the D.C.

calculation.

These costs have been allocated 81% residential and 19% non-residential based on the

incremental growth in population to employment for the 10-year forecast period.

Page 5-3


INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION

Town of Grimsby

Service:Administration Studies

Less: Less:

Prj.NoResidential

Share

Non-

Residential

Share

2016-2025 81% 19%

1 Development Charge Study - Update 2016 17,900 0 17,900 0 17,900 1,790 16,110 13,010 3,100

2 Development Charge Study 2021 69,000 0 69,000 0 69,000 6,900 62,100 50,151 11,949

3 Servicing Studies 2019 72,100 0 72,100 18,025 54,075 54,075 43,670 10,405

4 Sub-watershed Studies 2018 82,400 0 82,400 20,600 61,800 61,800 49,909 11,891

5 Parks Master Plan 2017 107,400 0 107,400 26,850 80,550 8,055 72,495 58,546 13,949

6 Recreation Master Plan 2018 92,100 0 92,100 23,025 69,075 6,908 62,168 50,205 11,962

7 Transportation Study - Casablanca / QEW 2016 60,000 0 60,000 6,000 54,000 54,000 43,609 10,391

8 Official Plan Update 2017 99,800 0 99,800 24,950 74,850 7,485 67,365 54,403 12,962

9 Zoning By-law 2018 113,000 0 113,000 19,210 93,790 9,379 84,411 68,169 16,242

10 Fire Master Plan 2016 52,000 0 52,000 13,000 39,000 39,000 31,496 7,504

11 Fire Master Plan 2021 57,000 0 57,000 14,250 42,750 42,750 34,524 8,226

12 Ward Boundary Study 2016 30,000 0 30,000 0 30,000 3,000 27,000 21,805 5,195

13 East End Waterfront Trail Plan 2018 50,000 0 50,000 12,500 37,500 3,750 33,750 27,256 6,494

14 Downtown Comm. Improvement Plan Update 2019 35,000 0 35,000 17,500 17,500 1,750 15,750 12,719 3,031

15 Transit Investigation Study 2016 70,000 0 70,000 35,000 35,000 35,000 28,265 6,735

16 Reserve Adjustment 401,925 (401,925) (401,925) (324,587) (77,338)

Total 1,007,700 0 0 1,007,700 632,835 0 374,865 49,017 325,848 263,149 62,699

Net Capital

CostSubtotal

Benefit to

Existing

Development

Grants,

Subsidies and

Other

Contributions

Attributable to

New

Development

Other (e.g.

10%

Statutory

Deduction)

Total

Potential DC Recoverable Cost

Increased Service Needs Attributable to

Anticipated Development Timing (year)

Gross

Capital Cost

Estimate

(2016$)

Post

Period

Benefit

Other

Deductions

Page 5-4


5.2.2 Indoor and Outdoor Recreation Services

The Town currently has 102 acres of parkland within its jurisdiction. This parkland

consists of various sized neighbourhood and community parks. Over the historical 10-

year period (2006-2015), The Town has had an average of 4 acres of parkland and 3.4

parkland amenities items per 1,000 people. Further, the Town’s current Parks and

Recreation fleet operates with 22 vehicles. Over the historical 10-year period (2006-

2015), the Town has had an average of 0.9 vehicles per 1,000 population. Including

parkland development, parkland amenities (e.g. ball diamonds, playground equipment,

soccer fields, etc.), and vehicles, the level of service provided is $419 per capita. When

applied over the forecast period, this average level of service translates into a D.C.-

eligible amount of $1,639,893.

With respect to indoor recreation facilities, there are currently 16 facilities provided by

the Town. Together, these facilities total 196,088 sq.ft. The average historical level of

service for the previous ten years has been approximately 7.59 sq.ft. of space per

capita or an investment of $1,455 per capita. Based on this service standard, the Town

would be eligible to collect $5,702,346 from D.C.s for recreation facility space.

In total for indoor and outdoor recreation services, the total D.C.-eligible amount that the

Town can recover from D.C.s is $7,342,238.

Based on the projected growth over the 10-year forecast period, the Town has identified

$10,236,333 in future growth capital costs for indoor and outdoor recreation. These

projects include new subdivision park development, development of the Forty Mile

Creek/Waterfront Trail Links, the Sports Complex Development (including financing

costs), an addition to the Peach King Centre, a Mountain Recreation Centre and a

provision for additional vehicles. The Town has identified $1,932,900 as the amount

that benefits existing development and $6,100 as the amount that benefits development

post-2025. With the application of the reserve balance of $702,831, the net growth

capital cost after the mandatory 10% deduction is $6,790,002. This amount is included

in the D.C. calculation.

As the predominant users of outdoor recreation tend to be residents of the Town, the

forecast growth-related costs have been allocated 95% to residential and 5% to non-

residential.

Page 5-5



Town of Grimsby

Service: Indoor and Outdoor Recreation

Less: Less:

Prj.NoResidential

Share

Non-

Residential

Share

2016-2025 95% 5%

1 New Subdivision Park Development 2016-2023 362,000 6,100 355,900 0 355,900 35,590 320,310 304,295 16,016

2 Forty Mile Creek/Waterfront Trail Links 2016-2016 339,000 0 339,000 27,100 311,900 31,190 280,710 266,675 14,036

3West End Waterfront Clock Tower Park

Amenity2017 220,000 0 220,000 0 220,000 22,000 198,000 188,100 9,900

4 Sports Complex Development 2016-2017 5,460,000 0 5,460,000 1,365,000 4,095,000 409,500 3,685,500 3,501,225 184,275

5

Sports Complex Development - Growth

Related Debt Interest Anticipated

(Discounted)

2017-2026 252,333 0 252,333 0 252,333 0 252,333 239,716 12,617

6Provision for Parks and Recreation

Vehicles2016-2025 140,000 0 140,000 0 140,000 14,000 126,000 119,700 6,300

7 Peach King Centre Addition 2018 2,163,000 0 2,163,000 540,800 1,622,200 162,220 1,459,980 1,386,981 72,999

8 Mountain Recreation Centre 2016-2017 1,300,000 0 1,300,000 0 1,300,000 130,000 1,170,000 1,111,500 58,500


Total 10,236,333 6,100 0 10,230,233 2,635,731 0 7,594,502 804,500 6,790,002 6,450,502 339,500

Net Capital

CostSubtotal

Benefit to

Existing

Development

Grants,

Subsidies and

Other

Contributions

Attributable to

New

Development

Other (e.g.

10%

Statutory

Deduction)

Total



Anticipated DevelopmentTiming

(year)

Gross Capital

Cost

Estimate

(2016$)

Post

Period

Benefit

Other

Deductions

Page 5-6


5.2.3 Library Services

The Town provides the Grimsby Public Library which totals 16,000 sq.ft. in library

space. Over the past ten years, the average level of service was 0.63 sq.ft. of space

per capita or an investment of $242 per capita. This equates to a total of $947,072 that

the Town would be eligible to collect from D.C.s.

Grimsby has included a provision for additional facility space in the amount of $945,000.

After the 10% mandatory reduction, the amount to include in the development charge is

$850,500. Note: this amount is in addition to the 2015 year-end reserve fund balance of

$603,493.

In addition, the Library currently has 52,849 collection materials. These collection items

include various materials including books, periodicals, audio and video tapes, and

DVDs, all of which have a total replacement value of approximately $1.7 million. Over

the historical 10-year period (2006-2015), the average level of service has been 2.13

items per capita or $68 per capita. This amounts to a D.C. eligible amount of $267,658.

The Town has included provisions for additional collection materials totalling $260,000.

After the 10% mandatory deduction, the amount included in the development charge is

$234,000.

While library usage is predominately residential based, there is some use of the facilities

by non-residential users, for the purpose of research. To acknowledge this use of the

growth-related capital costs have been allocated 95% residential and 5% non-

residential.

Page 5-7



Town of Grimsby

Service:Library Facilities

Less: Less:

Prj.NoResidential

Share

Non-

Residential

Share

2016-2025 95% 5%

1 Provision for Library Facilities* 2025 2016-2025 945,000 - 945,000 - 945,000 94,500 850,500 807,975 42,525

Total 945,000 0 0 945,000 0 0 945,000 94,500 850,500 807,975 42,525

*Provision is in addition to the 2015 Year End Reserve Balance of $603,493

Net Capital

CostSubtotal

Benefit to

Existing

Development

Grants,

Subsidies and

Other

Contributions

Attributable to

New

Development

Other (e.g.

10%

Statutory

Deduction)

Total


Increased Service Needs

Attributable to Anticipated

DevelopmentTiming

(year)

Gross

Capital Cost

Estimate

(2016$)

Post

Period

Benefit

Other

Deductions

Timing

(year)

To

Page 5-8



Town of Grimsby

Service:Library Collection Materials

Less: Less:

Prj.NoResidential

Share

Non-

Residential

Share

2016-2025 95% 5%

1 Provision for Library Materials 2016-2020 130,000 - 130,000 - 130,000 13,000 117,000 111,150 5,850

2 Provision for Library Materials 2021-2025 130,000 - 130,000 - 130,000 13,000 117,000 111,150 5,850

Total 260,000 0 0 260,000 0 0 260,000 26,000 234,000 222,300 11,700

Net Capital

CostSubtotal

Benefit to

Existing

Development

Grants,

Subsidies and

Other

Contributions

Attributable to

New

Development

Other (e.g.

10%

Statutory

Deduction)

Total




DevelopmentTiming

(year)

Gross

Capital Cost

Estimate

(2016$)

Post

Period

Benefit

Other

Deductions

Page 5-9


5.2.4 Parking Services

The Town provides 158 municipal parking spaces throughout four (4) lots in Grimsby.

Over the past ten years, the average level of service was 6.3 spaces per 1,000 people

or an investment of $19 per capita. This equates to a total D.C.-eligible amount of

$76,087 for municipal parking spaces.

Grimsby has included the capital costs for the Winston/Fifth Wheel ROW Trail Parking

and the Casablanca/North Service Road Parking Lot at a total gross capital cost of

$247,000. The Town has identified the $79,600 as the amount that will benefit

development post-2025 and $24,700 that will benefit existing development. After the

application of the reserve fund balance in the amount of $66,619 and the 10%

mandatory deduction, the net D.C.-eligible amount for inclusion in the calculations is

$61,811.

These costs have been allocated 81% residential and 19% non-residential based on the

incremental growth in population to employment for the 10-year forecast period.

Page 5-10



Town of Grimsby

Service:Parking Spaces

Less: Less:

Prj.NoResidential

Share

Non-

Residential

Share

2016-2025 81% 19%

1 Winston/Fifth Wheel ROW Trail Parking 2018 67,000 0 67,000 6,700 60,300 6,030 54,270 43,827 10,443

2Casablanca/NSRD Parking Lot (SE

corner)2019 180,000 79,600 100,400 18,000 82,400 8,240 74,160 59,890 14,270


Total 247,000 79,600 0 167,400 91,319 0 76,081 14,270 61,811 49,917 11,894

Net Capital

CostSubtotal

Benefit to

Existing

Development

Grants,

Subsidies and

Other

Contributions

Attributable to

New

Development

Other (e.g.

10%

Statutory

Deduction)

Total




(year)

Gross

Capital Cost

Estimate

(2016$)

Post

Period

Benefit

Other

Deductions

Page 5-11


5.2.5 Services Related to a Highway

Grimsby owns and maintains 97 km of rural and urban 2-lane roadways. This amounts

to an average level of investment of $6,741 per capita, resulting in a D.C. eligible

recovery amount of $26,425,896 over the 10-year forecast period (2016-2025).

With respect to future needs, the capital projects include road improvement and

reconstruction (with upgrades) projects throughout the Town and sidewalks within the

Winston Road Neighbourhood Area. Growth related financing costs have been

included for the following roads projects:

Marlow – Park to 280 m west;

Central Avenue – Baker to Park;

Casablanca Boulevard/Q.E.W. Ramp Improvements;

Winston Road – Hunter to 30 m east of Windward;

Winston Road – Hunter to 30 m west of Oakes – north side urbanization and

bikeway;

Windward to 5th Wheel; and

North Service Road – 5th Wheel (Winston Road) to 500 m east.

The gross capital cost of these projects is $20,264,878. After deductions for benefit to

existing development ($2,304,500), $2.7 million in grants and subsidies, and the

application of the reserve fund balance of $973,722, the D.C.-eligible cost to be

recovered over the buildout forecast period is $14,286,657.

The Town also has 25,007 sq.ft. of facility space within depots and domes which

equates to $150 per capita and a D.C.-recoverable amount of $587,608 over the

forecast period.

The Town has identified the need for an expansion to the Operations Centre Facility

and a new Snow Storage Facility at a total gross capital cost of 1,430,000. With a

benefit to existing development of $544,000 and a reserve fund adjustment of $311,050,

the amount recoverable from development charges is $574,950.

Further, the Town provides 46 services related to highway vehicles, which equate to an

average level of investment of $159 per capita, and an amount recoverable from D.C.s

of $622,731 over the forecast period.

The Town has identified the need for four (4) new roads and related vehicles over the

buildout forecast. The gross capital cost of these vehicles is $681,800. After the

Page 5-12


application of the reserve fund balance of $67,620, the net D.C.-recoverable amount is

$614,180.

In total, the amount included in the development charge for services related to a

highway is $14,002,908.

The residential/non-residential allocation for all roads and related services are based on

the ratio of population to employment over the buildout period. This results in a

residential/non-residential split of 81%/19%.

Page 5-13



Town of Grimsby

Service: Services Related to a Highway

Less:

Prj .NoResidential

Share

Non-Residential

Share

2016-2025 81% 19%

Road Improvements

1 Marlow - Park to 280m West 2018 418,000 0 418,000 209,000 209,000 168,785 40,215

2 Central Av - Baker to Park 2018 1,200,000 0 1,200,000 600,000 600,000 484,549 115,451

3Interest on Debt - Growth Related (Marlow &

Centrral Ave) - Discounted2018-2027 100,067 0 100,067 0 100,067 80,812 19,255

4 Casablanca Blvd/QEW Ramp Improvements 2019 3,000,000 0 3,000,000 300,000 2,700,000 2,180,470 519,530

5Interest on Debt - Growth Related (Casablanca

Blvd/QEW Ramp Improvements) - Discounted2019-2028 327,422 0 327,422 0 327,422 264,420 63,002

6 Winston Rd. - Hunter to 30m E of Windward 2017 3,980,000 0 3,980,000 398,000 1,300,000 2,282,000 1,842,901 439,099

7Interest on Debt - Growth Related (Winston Rd.

- Hunter to 30m E of Windward) - Discounted2017-2026 287,912 0 287,912 0 287,912 232,512 55,400

8 Concord Place - Windward easterly 2017 369,000 0 369,000 0 369,000 297,998 71,002

9Hunter Rd - NSR to 180m N (incl. watercourse

enclosure )2016 800,000 0 800,000 0 400,000 400,000 323,033 76,967

10 Hunter Rd. Bikeway 2017 75,000 0 75,000 7,500 67,500 54,512 12,988

11Winston Rd.- Hunter to 340m W of Oakes - N

side urbanization & bikeway2016-2017 1,020,000 0 1,020,000 102,000 918,000 741,360 176,640

12

Interest on Debt - Growth Related (Winston Rd.

- Hunter to 30m W of Oakes - N side

urbanization & bikeway) - Discounted

2017-2026 115,821 0 115,821 0 115,821 93,535 22,286

Sidewalks

13Sidewalks (Ex. Town ROW's within Winston

Road Neighbourhood Area)2017-2019 900,000 0 900,000 0 900,000 726,823 173,177

Road Reconstruction & Upgrade

14 Windward Dr @ NSRd - left turn lane 2017 150,000 0 150,000 0 150,000 121,137 28,863

15 NSRd - Windward to 5th Wheel (Winston Rd) 2017 2,730,000 0 2,730,000 273,000 2,457,000 1,984,227 472,773

16Interest on Debt - Growth Related (Windward to

5th Wheel) - Discounted2017-2026 309,991 0 309,991 0 309,991 250,343 59,648

17 NSRd - 5th Wheel (Winston Rd) to 500m east 2019 4,150,000 0 4,150,000 415,000 1,000,000 2,735,000 2,208,735 526,265

18

Interest on Debt - Growth Related (NSRd - 5th

Wheel (Winston Rd) to 500m east) -

Discounted

2019-2028 331,666 0 331,666 0 331,666 267,847 63,819

19 Reserve Adjustment 973,722 (973,722) (786,359) (187,362)

Total 20,264,878 0 0 20,264,878 3,278,222 2,700,000 14,286,657 11,537,638 2,749,019



(year)

Gross Capital

Cost Estimate

(2016$)

Post Period

Benefit

Other

Deductions

Net Capital

CostBenefit to

Existing

Development

Grants, Subsidies and

Other Contributions

Attributable to New

Development

Total


Page 5-14



Town of Grimsby

Service: Services Related to a Highway - Related Facilities

Less:

Prj .NoResidential

Share

Non-Residential

Share

2016-2025 81% 19%

1Operations Centre - Facility

Expansion 2018 1,200,000 0 1,200,000 360,000 840,000 678,368 161,632

2 Snow Storage Facility 2020 230,000 0 230,000 184,000 46,000 37,149 8,851

3 Reserve Fund Adjustment 311,050 (311,050) (251,198) (59,852)

Total 1,430,000 0 0 1,430,000 855,050 0 574,950 464,319 110,631



Development

Timing

(year)

Gross

Capital Cost

Estimate

(2016$)

Post Period

Benefit

Other

Deductions

Net Capital

CostBenefit to

Existing

Development


Other Contributions

Attributable to New

Development

Total


Page 5-15



Town of Grimsby

Service: Services Related to a Highway - Related Vehicles

Less:

Prj .NoResidential

Share

Non-Residential

Share

2016-2025 81% 19%

1 New Truck and Snow Plow 2019 250,000 0 250,000 0 250,000 201,895 48,105

2 New Sidewalk Snow Plow 2017 164,800 0 164,800 0 164,800 133,089 31,711

3 Stump Grinder 2016 17,000 0 17,000 0 17,000 13,729 3,271

4 Dump Truck 2016 250,000 0 250,000 0 250,000 201,895 48,105


Total 681,800 0 0 681,800 67,620 0 614,180 496,001 118,180

Increased Service Needs Attributable

to Anticipated DevelopmentTiming

(year)

Gross

Capital Cost

Estimate

(2016$)

Post Period

Benefit

Other

Deductions

Net Capital

CostBenefit to

Existing

Development


Other Contributions

Attributable to New

Development

Total


Page 5-16


5.2.6 Fire Protection Services

Grimsby currently operates its fire services from two stations totalling 11,600 sq.ft. of

facility space, providing for an average level of service of 0.46 sq.ft. per capita or an

investment of $137 per capita.

The Town has identified the need for the replacement and expansion of Fire Hall #2 and

a new Training Centre to be located on the same property as well as a Third Station in

the West End. Gross capital costs for these projects total $8,512,000. In addition,

financing costs (discounted) have been included for Fire Hall #2 at a cost of $644,963.

The Town has identified a benefit to existing development deduction of $4,025,288

(including a reserve adjustment of $430,788). The Town has also identified other

deductions totaling $4.5 million which includes a deduction for such things as post

period benefit and amounts in excess of the service standard cap. The D.C.-eligible

amount the Town has included in the D.C. for Fire Facilities is $627,475.

The fire department has a current inventory of 10 vehicles. The 10-year historical

service standard is 0.3 vehicles per 1,000 population which equates to an investment of

$151 per capita. This results in a D.C.-eligible amount of $592,430 over the forecast

period.

The capital needs that have been identified for fire vehicles include six (6) vehicles in

total at a gross capital cost of $3.10 million. The Town has identified $2.5 million in

other deductions which include deductions for post period benefit as well as the amount

in excess of the service standard cap. After these deductions, the D.C.-recoverable

costs are $592,400.

Further, the fire department provides 48 firefighters with items of equipment and gear

for use in fire services. This results in a calculated average level of service of $19 per

capita for the historical 10-year period and a D.C.-eligible amount of $72,716.

For the forecast period, equipment for 18 additional firefighters have been identified as

required to service the anticipated development. The total gross capital costs total

$198,000. Other deductions of $125,300 have been identified by the Town. These

include deductions for post period benefit as well as the amount in excess of the service

standard. After these deductions, the D.C.-recoverable amount is $72,700.

In total, the amount included in the development charge for fire services is $1,292,575.

Page 5-17


These costs are shared between residential and non-residential based on the ratio of

population to employment over the forecast period, resulting in 81% being allocated to

residential development and 19% being allocated to non-residential development.

Page 5-18



Town of Grimsby

Service: Fire Facilities

Less:

Prj .NoResidential

Share

Non-

Residential

Share

2016-2025 81% 19%

1 Fire Hall #2 & Training Station 2016-2017 5,112,000 1,209,000 3,903,000 3,191,800 711,200 574,352 136,848

2Interest on Debt (Fire Hall #2 & Training

Station) - Discounted2017-2026 644,963 152,500 492,463 402,700 89,763 72,491 17,272

3Fire Station #3 - including land (West

end) 2018-2019 3,400,000 3,142,700 257,300 0 257,300 207,791 49,509

4 Reserve Fund Adjustment 430,788 (430,788) (347,896) (82,892)

Total 9,156,963 4,504,200 4,652,763 4,025,288 0 627,475 506,737 120,738

Timing

(year)Benefit to

Existing

Development


Other Contributions

Attributable to New

Development

Total

Net Capital

Cost



Anticipated Development

Gross

Capital Cost

Estimate

(2016$)

Other

Deductions

Page 5-19



Town of Grimsby

Service: Fire Vehicles

Less:

Prj .NoResidential

Share

Non-

Residential

Share

2016-2025 81% 19%

1 Prevention Vehicle (582) 2018 50,000 0 50,000 0 50,000 40,379 9,621

2 Fire Tanker (536) - Station 3 2019 309,000 254,100 54,900 0 54,900 44,336 10,564

3 Fire Pumper (531) - Station 3 2019 750,000 616,800 133,200 0 133,200 107,570 25,630

4 Medical Rescue Vehicle (538) - Station 3 2019 129,000 106,100 22,900 0 22,900 18,494 4,406

5 Fire Aerial Platform (535) - Station 3 2019 1,803,000 1,482,800 320,200 0 320,200 258,588 61,612

6 Command Vehicle (505) - Station 3 2019 63,000 51,800 11,200 0 11,200 9,045 2,155

Total 3,104,000 2,511,600 592,400 0 0 592,400 478,411 113,989



(year)

Gross

Capital Cost

Estimate

(2016$)

Other

Deductions

Net Capital

CostBenefit to

Existing

Development


Other Contributions

Attributable to New

Development

Total


Page 5-20



Town of Grimsby

Service: Fire Small Equipment and Gear

Less:

Prj .NoResidential

Share

Non-Residential

Share

2016-2025 81% 19%

1Additional Firefighters (8) -

Existing Urban Area2017 88,000 23,600 64,400 0 64,400 52,008 12,392

2

Additional Firefighters (10) -

Winston Road

Neighbourhood

2019 110,000 101,700 8,300 0 8,300 6,703 1,597

Total 198,000 125,300 72,700 0 0 72,700 58,711 13,989



Development

Timing

(year)

Gross

Capital Cost

Estimate

(2016$)

Other

Deductions

Net Capital

CostBenefit to

Existing

Development


Other Contributions

Attributable to New

Development

Total


Page 5-21


5.3 Service Levels and Urban Buildout Capital Costs for Grimsby’s

D.C. Calculation

This section evaluates the development-related capital requirements for those services

over an urban-buildout planning period (2016-urban buildout).

5.3.1 Stormwater Drainage and Control Services

Grimsby has identified the need to upgrade the C.N. Crossing Culvert (400m East of

Baker Road) at a gross cost of $900,000. After the application of the reserve fund

balance of $298,903, the net D.C.-recoverable cost is $601,097.

These costs are shared between residential and non-residential development based on

the proportion of land area over the forecast period, resulting in 68% being allocated to


5.3.2 Wastewater Services

In 2010 the Town had a West Grimsby Sanitary Modelling Report carried out which

recommended that the existing North Service Road and the Q.E.W. Crossing Sanitary

Sewers were adequate for existing development but required additional work to

accommodate growth in the proposed West End Development area. Subsequently,

$2.3 million was identified for inclusion in the 2014 D.C. Study for this work with a 10%

benefit to existing deduction.

In the fall of 2014 the Region of Niagara completed a major upgrade of the Roberts

Road Sewage Pump Station (S.P.S.) and force main with 3 to 4 times the pumping

capacity of the old S.P.S. The Roberts Road S.P.S. is located down-stream from the

D.C. sewer works required to service growth.

With the completion of the Regional works, Town staff felt it would be best to re-monitor

the upstream sewers to see what impact the new upgraded Roberts Road S.P.S. had

on flows. In 2015 and early 2016 the Town carried out extensive monitoring and then

modelled the existing pipe with the new S.P.S. The result was the existing pipe had

ample capacity for all new West End Development subject to some minor improvements

estimated at $400,000. This amount has been included in the 2016 D.C. study with

100% of the costs attributed to growth.

In addition to the work noted above, upgrades to Central Avenue sewers are also

included in the D.C. study at an estimated amount of $309,000. In total, $709,000 is

included in the D.C.

Page 5-22


The D.C. reserve balance for wastewater services has a current balance of $820,896.

With the updated project listing for wastewater applied, the net D.C.-recoverable cost for

wastewater will be zero. The reserve fund will then have a balance of $111,896. As the

Town continues to expand the water services to service growth, this amount is

recommended to be redirected to the water D.C. reserve fund to reduce the amount of

D.C. funding required for water services.

The growth-related wastewater costs are shared between residential and non-

residential development based on design flows in the Town, resulting in 84% being

allocated to residential development and 16% being allocated to non-residential

development.

5.3.3 Water Services

Grimsby has identified the need for five (5) water distribution projects over the forecast

period. The total gross cost of these projects is $2,075,400. A deduction of $792,700

has been made related to the benefit to existing development. After the deduction of

the benefit to existing development and the application of the reserve fund balance of

$424,112 (including the $111,896 redirected from the wastewater reserve fund), the net

D.C.-recoverable cost is $858,588.

The growth-related costs are shared between residential and non-residential

development based on design flows in the Town, resulting in 84% being allocated to


Page 5-23



Town of Grimsby

Service: Stormwater

Less:

Residential

Share

Non-Residential

Share

2016-Urban Buildout 68% 32%

1CN Crossing Culvert Upgrade

(400m E of Baker Rd)2017 900,000 - 900,000 - 900,000 613,942 286,058


Total 900,000 0 0 900,000 298,903 0 601,097 410,043 191,054

Prj.No



(year)

Gross

Capital Cost

Estimate

(2016$)

Post Period

Benefit

Other

Deductions

Net Capital

CostBenefit to

Existing

Development


Other Contributions

Attributable to New

Development

Total


Page 5-24



Town of Grimsby

Service: Wastewater - Sewers

Less:

Residential

Share

Non-Residential

Share


1 Central Avenue Upgrade for Developers 2020 309,000 - 309,000 - 309,000 259,560 49,440

2 NSRd , QEW Xing to Roberts PS 2016 400,000 - 400,000 - 400,000 336,000 64,000


Total 709,000 0 0 709,000 709,000 0 0 0 0

Prj.No



(year)

Gross

Capital Cost

Estimate

(2016$)

Post Period

Benefit

Other

Deductions

Net Capital

CostBenefit to

Existing

Development


Other Contributions

Attributable to New

Development

Total


Page 5-25



Town of Grimsby

Service: Water Distribution

Less:

Residential

Share

Non-Residential

Share


1 Marlow Av - Park to 270m west 2018 248,000 - 248,000 124,000 124,000 104,160 19,840

2 Central Av - Baker to Park 2017 760,800 - 760,800 380,400 380,400 319,536 60,864

3 Bedford Park- Central to Mary 2018 190,300 - 190,300 95,150 95,150 79,926 15,224

4 Kelson Av / QEW Xing 2021 772,600 - 772,600 193,150 579,450 486,738 92,712

5 Concord Pl - Windward to 120m easterly 2016 103,700 - 103,700 - 103,700 87,108 16,592


Total 2,075,400 0 0 2,075,400 1,216,812 0 858,588 721,214 137,374

Prj.No



(year)

Gross

Capital Cost

Estimate

(2016$)

Post Period

Benefit

Other

Deductions

Net Capital

CostBenefit to

Existing

Development


Other Contributions

Attributable to New

Development

Total


Page 6-1


6. Development Charge Calculation

Table 6-1 calculates the proposed uniform D.C.s to be imposed on anticipated

development in the Town for services based upon an urban buildout horizon. Table 6-2

calculates the proposed D.C.s to be imposed for services constructed to facilitate the

Town’s development over a 10-year planning horizon. Note services related to a

highway and fire services are calculated on a buildout planning horizon, however the

buildout planning horizon is assumed to be 10 years.

The calculation for residential development is generated on a per capita basis and is

based upon four forms of housing types (single and semi-detached, apartments 2+

bedrooms, apartment’s bachelor and 1 bedroom, and all other multiples). The non-

residential D.C. has been calculated on a per sq.ft. of gross floor area basis for non-

residential development (Commercial, Institutional and Industrial).

The D.C. eligible costs for each service component were developed in Chapter 5 for all

Town services, based on their proposed capital programs.

For the residential calculations, the total cost is divided by the “gross” (new resident)

population to determine the per capita amount. The eligible D.C. cost calculations set

out in Chapter 5 are based on the net anticipated population increase (the forecast new

unit population less the anticipated decline in existing units). The cost per capita is then

multiplied by the average occupancy of the new units (Appendix A, Schedule 3 & 4) to

calculate the charge in Tables 6-1 and 6-2.

With respect to non-residential development, based on recent Council direction to

attract industrial developments to the Town, the total costs are allocated to non-

residential development and varied into two categories, industrial and non-industrial.

These varied rates are based on forecasted industrial vs. non-industrial employment

relative to total employment. These costs are then divided by the respective

anticipated development over the planning period to calculate a cost per sq.ft. of gross

floor area for each category (see Tables 6-1 and 6-2).

Table 6-3 summarizes the total development charge that is applicable for municipal-

wide and area-specific services. Table 6-4 summarizes the gross capital expenditures

and sources of revenue for works to be undertaken during the 5-year life of the by-law.

Page 6-2


2016 $ DC Eligible Cost 2016 $ DC Eligible Cost

SERVICE Residential Non-Residential SDU per ft² Industrial Non-Industrial

Industrial

per ft2

Non-Industrial

per ft2

$ $ $ $ $ $ $ $


1.1 Channels, drainage and ponds 410,043 191,054 320 0.31 22,217 168,837 0.16 0.36

410,043 191,054 320 0.31 22,217 168,837 0.16 0.36

2. Wastewater Services

2.1 Sewers - - - - - - - -

- - - - - - - -

3. Water Services

3.1 Distribution systems 721,214 137,374 563 0.23 15,974 121,400 0.12 0.26

721,214 137,374 563 0.23 15,974 121,400 0.12 0.26

TOTAL $1,131,256 $328,428 $883 0.54 $38,191 $290,237 0.28 0.62

DC ELIGIBLE CAPITAL COST $1,131,256 $328,428 $38,191 $290,237

Build out Gross Population / GFA Growth (ft².) 4,049 609,108 138,320 470,788

Cost Per Capita / Non-Residential GFA (ft².) $279.39 $0.54 $0.28 $0.62

By Residential Unit Type p.p.u

Single and Semi-Detached Dwelling 3.16 $883

Apartments - 2 Bedrooms + 1.88 $525

Apartments - Bachelor and 1 Bedroom 1.25 $349

Other Multiples 2.13 $595

TABLE 6-1

TOWN OF GRIMSBY

DEVELOPMENT CHARGE CALCULATION

Urban Area Services

2016-Urban Buildout

2016 $ DC Eligible Cost2016 $ DC Eligible Cost

Page 6-3



SERVICE Residential Non-Residential SDU per ft² Industrial Non-Industrial

Industrial

per ft2

Non-Industrial

per ft2

$ $ $ $ $ $ $ $


4.1 Roads 11,537,638 2,749,019 8,638 4.42 329,647 2,419,372 2.27 5.07

4.2 Depots and Domes 464,319 110,631 349 0.18 13,266 97,365 0.09 0.20

4.3 PW Rolling Stock 496,001 118,180 372 0.19 14,171 104,008 0.10 0.22

12,497,957 2,977,830 9,358 4.79 357,084 2,620,745 2.46 5.49


5.1 Fire facilities 506,737 120,738 380 0.19 14,478 106,260 0.10 0.22

5.2 Fire vehicles 478,411 113,989 358 0.18 13,669 100,320 0.09 0.21

5.3 Small equipment and gear 58,711 13,989 44 0.02 1,677 12,311 0.01 0.03

1,043,859 248,715 782 0.39 29,825 218,891 0.20 0.46

6. Parking Services

6.1 Municipal parking spaces 49,917 11,894 37 0.02 1,426 10,467 0.01 0.02

49,917 11,894 37 0.02 1,426 10,467 0.01 0.02

7. Indoor and Outdoor Recreation Services

7.1

Parkland development, amenities & trails,

vehicles & indoor facilities 6,450,502 339,500 4,831 0.55 40,711 298,789 0.28 0.63

8. Library Services

8.1 Library facilities 807,975 42,525 605 0.07 5,099 37,426 0.03 0.08

8.2 Library materials 222,300 11,700 166 0.02 1,403 10,297 0.01 0.02

1,030,275 54,225 771 0.09 6,502 47,723 0.04 0.10

9. Administration

9.1 Studies 263,149 62,699 197 0.10 7,519 55,181 0.05 0.12

TOTAL $21,335,660 $3,694,863 $15,976 $5.94 $443,067 $3,251,796 3.04 6.82

DC ELIGIBLE CAPITAL COST $21,335,660 $3,694,863 $443,067 $3,251,796

10 Year Gross Population / GFA Growth (ft².) 4,220 623,213 145,600 477,613

Cost Per Capita / Non-Residential GFA (ft².) $5,055.84 $5.94 $3.04 $6.82

By Residential Unit Type p.p.u

Single and Semi-Detached Dwelling 3.16 $15,976

Apartments - 2 Bedrooms + 1.88 $9,505

Apartments - Bachelor and 1 Bedroom 1.25 $6,320

Other Multiples 2.13 $10,769

2016 $ DC Eligible Cost

TABLE 6-2

TOWN OF GRIMSBY


Municipal-wide Services

2016-2025

2016 $ DC Eligible Cost

Page 6-4



Residential Non-Residential SDU per ft² Industrial Non-Industrial

Industrial

per ft2Non-Industrial

per ft2

$ $ $ $ $ $ $ $

Urban-wide Services $1,131,256 $328,428 $883 $0.54 $38,191 $290,237 $0.28 $0.62

Municipal-wide Services 21,335,660 3,694,863 15,976 5.94 443,067 3,251,796 $3.04 $6.82

TOTAL 22,466,917 4,023,291 16,859 6.48 481,258 3,542,033 $3.32 $7.44


TABLE 6-3

TOWN OF GRIMSBY


TOTAL ALL SERVICES

Page 6-5


Table 6-4

TOWN OF GRIMSBY

GROSS EXPENDITURE AND SOURCES OF REVENUE SUMMARY

FOR COSTS TO BE INCURRED OVER THE LIFE OF THE BY-LAW

OTHER

DEDUCTIONS

BENEFIT TO

EXISTINGOTHER FUNDING

LEGISLATED

REDUCTIONRESIDENTIAL

NON-

RESIDENTIAL


1.1 Channels, drainage and ponds 900,000 0 0 0 0 0 613,942 286,058


2.1 Sewers 709,000 0 0 0 0 0 595,560 113,440

3. Water Services

3.1 Distribution systems 1,302,800 0 599,550 0 0 0 590,730 112,520


4.1 Roads 19,386,615 0 2,304,500 2,700,000 0 0 11,614,728 2,767,387

4.2 Depots and Domes 1,430,000 0 544,000 0 0 0 715,517 170,483

4.3 PW Rolling Stock 681,800 0 0 0 0 0 550,609 131,191


5.1 Fire facilities 8,834,481 4,427,950 3,393,150 0 0 0 818,388 194,993

5.2 Fire vehicles 3,104,000 2,511,600 0 0 0 0 478,411 113,989

5.3 Small equipment and gear 286,000 148,900 0 0 0 0 110,719 26,381

6. Parking Services

6.1 Municipal parking spaces 247,000 0 24,700 0 14,270 79,600 103,718 24,712


7.1 Parkland development, amenities & trails, vehicles & indoor facilities 9,778,250 0 1,932,900 0 784,154 3,813 6,704,515 352,869

8. Library Services

8.1 Library facilities 472,500 0 0 0 47,250 0 403,988 21,263

8.2 Library materials 130,000 0 0 0 13,000 0 111,150 5,850

9. Administration

9.1 Studies 881,700 0 216,660 0 42,117 0 503,061 119,862

TOTAL EXPENDITURES & REVENUES $48,144,146 $7,088,450 $9,015,460 $2,700,000 $900,790 $83,413 $23,915,036 $4,440,998

POST DC PERIOD

BENEFIT

TOTAL GROSS

COSTSERVICE

SOURCES OF FINANCING

TAX BASE OR OTHER NON-DC SOURCE DC RESERVE FUND

Page 7-1


7. Development Charge Policy Recommendations and Development Charge By-law Rules

7.1 Introduction

s.s.5(1)9 states that rules must be developed:

“...to determine if a development charge is payable in any particular case and to determine the amount of the charge, subject to the limitations set out in subsection 6.”

Paragraph 10 of the section goes on to state that the rules may provide for exemptions,

phasing in and/or indexing of D.C.s.

s.s.5(6) establishes the following restrictions on the rules:

the total of all D.C.s that would be imposed on anticipated development must not

exceed the capital costs determined under 5(1) 2-8 for all services involved;

if the rules expressly identify a type of development, they must not provide for it

to pay D.C.s that exceed the capital costs that arise from the increase in the

need for service for that type of development; however, this requirement does not

relate to any particular development; and

if the rules provide for a type of development to have a lower development

charge than is allowed, the rules for determining D.C.s may not provide for any

resulting shortfall to be made up via other development.

With respect to “the rules,” Section 6 states that a D.C. by-law must expressly address

the matters referred to above re s.s.5(1) para. 9 and 10, as well as how the rules apply

to the redevelopment of land.

The rules provided are based on the Town’s existing policies; however, there are items

under consideration at this time and these may be refined prior to adoption of the by-

law.

7.2 Development Charge By-law Structure

Bill 73 has introduced two new sections where Council must consider the use of area

specific charges:

Page 7-2


1) Section 2(9) of the Act now requires a municipality to implement area specific

D.C.s for either specific services which are prescribed and/or for specific

municipalities which are to be regulated. (Note that at this time, no municipalities

or services are prescribed by the Regulations.)

2) Section 10(2) c.1 of the D.C.A. requires that “the development charges

background study shall include consideration of the use of more than one

development charge by-law to reflect different needs for services in different

areas.”

With regard to the first item, there are no services or specific municipalities identified in

the regulations which must be area rated. The second item requires Council to consider

the use of area rating.

In past D.C. studies, consideration has been given to area rating; however, there have

been several reasons why this has not been imposed:

1. All Town services, with the exception of water, wastewater and stormwater,

require that the average 10-year service standard be calculated. This average

service standard multiplied by growth in the Town, establishes an upper ceiling

on the amount of funds which can be collected from all developing landowners.

Section 4(4) of O. Reg. 82/98 provides that “…if a development charge by-law

applies to a part of the municipality, the level of service and average level of

service cannot exceed that which would be determined if the by-law applied to

the whole municipality.” Put in layman’s terms, the average service standard

multiplied by the growth within the specific area, would establish an area-specific

ceiling which would significantly reduce the total revenue recoverable for the

Town hence potentially resulting in D.C. revenue shortfalls and impacts on

property taxes.

2. Extending on item 1, attempting to impose an area charge potentially causes

equity issues in transitioning from a Town-wide approach to an area specific

approach. For example, if all services were now built (and funded) within Area A

(which is 75% built out) and this was funded with some revenues from Areas B

and C, moving to an area rating approach would see Area A contribute no funds

to the costs of services in Areas B & C. The development charges would be

lower in Area A (as all services are now funded) and higher in Areas B and C.

As well, funding shortfalls may then potentially encourage the municipality to

provide less services to Areas B and C due to reduced revenue.

Page 7-3


3. Many services which are provided (roads, indoor and outdoor recreation

services, and library) are not restricted to one specific area and are often used by

all residents. For example, arenas located in different parts of the Town will be

used by residents from all areas depending on the programing of the facility (i.e.

a public skate is available each night, but at a different arena; hence usage of

any one facility at any given time is based on programing availability).

Therefore, it is recommended that:

a uniform municipal-wide development charge be calculated for all municipal

services, except for water, wastewater, and stormwater, which will be calculated

based on growth in the urban area; and

one municipal development charge by-law be used for all services.

7.3 Development Charge By-law Rules

The following subsections set out the recommended rules governing the calculation,

payment and collection of D.C.s in accordance with Section 6 of the D.C.A.

It is recommended that the following sections provide the basis for the

development charges:

7.3.1 Payment in any Particular Case

In accordance with the D.C.A., s.2(2), a development charge be calculated, payable and

collected where the development requires one or more of the following:

a) the passing of a zoning by-law or of an amendment to a zoning by-law under

section 34 of the Planning Act;

b) the approval of a minor variance under Section 45 of the Planning Act;

c) a conveyance of land to which a by-law passed under section 50(7) of the

Planning Act applies;

d) the approval of a plan of subdivision under Section 51 of the Planning Act;

e) a consent under Section 53 of the Planning Act;

f) the approval of a description under section 50 of the Condominium Act; or

g) the issuing of a building permit under the Building Code Act in relation to a

building or structure.

Page 7-4


7.3.2 Determination of the Amount of the Charge

The following conventions be adopted:

1) Costs allocated to residential uses will be assigned to different types of

residential units based on the average occupancy for each housing type

constructed during the previous decade. Costs allocated to non-residential uses

will be assigned to industrial and non-industrial uses based on the amount of

square feet of gross floor area constructed.

2) Costs allocated to residential and non-residential uses are based upon a number

of conventions, as may be suited to each municipal circumstance, e.g.

for Administration, the costs have been based on a population vs.

employment growth ratio (81%/19%) for residential and non-residential,

respectively) over the 10-year forecast period;

for Indoor and Outdoor Recreation, and Library services, a 5% non-

residential attribution has been made to recognize use by the non-

residential sector;

for Services Related to a Highway and Related Infrastructure and Fire

Protection Services, the costs have been based on a population vs.

employment growth ratio (81%/19%) for residential and non-residential,

respectively over the buildout forecast period;

for Water and Wastewater Services, the costs have been based on design

flows (84%/16%) for residential and non-residential developments over the

urban buildout forecast period; and

for Stormwater Services, the costs have been split between residential

and non-residential based on benefitting land area (68%/32%).

7.3.3 Application to Redevelopment of Land (Demolition and Conversion)

If a development involves the demolition of and replacement of a building or structure

on the same site, or the conversion from one principal use to another, the developer

shall be allowed a credit equivalent to:

1) the number of dwelling units demolished/converted multiplied by the applicable

residential development charge in place at the time the development charge is

payable; and/or

Page 7-5


2) the gross floor area of the building demolished/converted multiplied by the

current non-residential development charge in place at the time the development

charge is payable.

The demolition credit is allowed only if the land was improved by occupied structures

and if the demolition permit related to the site was issued less than 48 months prior to

the issuance of a building permit. The credit can, in no case, exceed the amount of

D.C.s that would otherwise be payable.

7.3.4 Exemptions (full or partial)

a) Statutory exemptions

industrial building additions of up to and including 50% of the existing

gross floor area (defined in O.Reg. 82/98, s.1) of the building; for industrial

building additions which exceed 50% of the existing gross floor area, only

the portion of the addition in excess of 50% is subject to development

charges (s.4(3)) of the D.C.A.;

buildings or structures owned by and used for the purposes of any

municipality, local board or Board of Education (s.3);

residential development that results only in the enlargement of an existing

dwelling unit, or that results only in the creation of up to two additional

dwelling units (based on prescribed limits set out in s.2 of O.Reg. 82/98).

b) Non-statutory exemptions

Bona fide farm (non-residential) buildings including wholesale greenhouse

facilities and structures; and

Development creating or adding an accessory use or accessory structure

not exceeding 10 square metres of gross floor area.

7.3.5 Phasing in

No provisions for phasing in the development charge are provided in the development

charge by-law.

7.3.6 Timing of Collection

The development charge for all services shall be collected at the time of issuance of the

first building permit, subject to early or late payment agreements entered into by the

Town and an owner under section 27 of the D.C.A.

Page 7-6


7.3.7 Indexing

Indexing of the development charges shall be implemented on a mandatory basis

annually, commencing on the first anniversary date of this by-law and each anniversary

date thereafter, in accordance with the Statistics Canada Quarterly, Non-Residential

Building Construction Price Index (CANSIM Table 327-0043)1 for the most recent year-

over-year period.

7.4 Other Development Charge By-law Provisions

It is recommended that:

7.4.1 Categories of Services for Reserve Fund and Credit Purposes

The Town’s development charge collections are currently reserved in eleven (11)

separate reserve funds: Services Related to a Highway, Other Transportation Services,

Parking, Fire Protection Services, Outdoor Recreation Services, Indoor Recreation

Services, Library Services, Administration, Stormwater Drainage and Control Services,

Wastewater Services, and Water Services. It is recommended that the Town move

forward with nine (9) reserve funds by utilizing the following actions:

Combine the Other Transportation Services reserve fund and the Services

Related to a Highway reserve fund and rename the reserve “Services Related to

a Highway and Related Infrastructure”; and

Combine the Indoor and Outdoor Recreation Services reserve funds.

Appendix D outlines the reserve fund policies that the Town is required to follow as per

the D.C.A.

7.4.2 By-law In-force Date

A by-law under the D.C.A. comes into force on the day after which the by-law is passed

by Council.

1 O.Reg 82/98 referenced “The Statistics Canada Quarterly, Construction Price Statistics, catalogue number 62-007” as the index source. As of the end of December, 2013 this catalogue has been discontinued and replaced by this web based table.

Page 7-7


7.4.3 Minimum Interest Rate Paid on Refunds and Charged for Inter-Reserve

Fund Borrowing

The minimum interest rate is the Bank of Canada rate on the day on which the by-law

comes into force (as per s.11 of O.Reg. 82/98).

7.5 Other Recommendations

It is recommended that Council:

“Whenever appropriate, request that grants, subsidies and other contributions be

clearly designated by the donor as being to the benefit of existing development or

new development, as applicable;”

“Adopt the assumptions contained herein as an ‘anticipation’ with respect to

capital grants, subsidies and other contributions;”

“Approve the capital project listing set out in Chapter 5 of the Development

Charges Background Study dated September 1, 2016, subject to further annual

review during the capital budget process;”

“Approve the Development Charges Background Study dated September 1,

2016, as amended (if applicable);"

“Approve the use of a uniform municipal-wide residential charge (which varies by

unit type), for all services except for water, wastewater, and stormwater, as

opposed to the use of an area rating;”

“Approve the use of a uniform municipal-wide Industrial charge, for all services

except for water, wastewater, and stormwater, as opposed to the use of an area

rating;”

“Approve the use of a uniform municipal-wide Non-Industrial charge, for all

services except for water, wastewater, and stormwater, as opposed to the use of

an area rating;”

“Determine that no further public meeting is required;” and

“Approve the Development Charge By-law as set out in Appendix G.”

Page 8-1


8. By-law Implementation

8.1 Public Consultation Process

8.1.1 Introduction

This chapter addresses the mandatory, formal public consultation process (Section

8.1.2), as well as the optional, informal consultation process (Section 8.1.3). The latter

is designed to seek the co-operation and participation of those involved, in order to

produce the most suitable policy. Section 8.1.4 addresses the anticipated impact of the

development charge on development from a generic viewpoint.

8.1.2 Public Meeting of Council

Section 12 of the D.C.A., indicates that before passing a development charge by-law,

Council must hold at least one public meeting, giving at least 20 clear days’ notice

thereof, in accordance with the Regulation. Council must also ensure that the proposed

by-law and background report are made available to the public at least sixty (60) days

prior to by-law passage.

Any person who attends such a meeting may make representations related to the

proposed by-law.

If a proposed by-law is changed following such a meeting, Council must determine

whether a further meeting (under this section) is necessary (i.e. if the proposed by-law

which is proposed for adoption has been changed in any respect, Council should

formally consider whether an additional public meeting is required, incorporating this

determination as part of the final by-law or associated resolution. It is noted that

Council’s decision, once made, is final and not subject to review by a Court or the

Ontario Municipal Board (O.M.B.).

8.1.3 Other Consultation Activity

There are three broad groupings of the public who are generally the most concerned

with Town development charge policy:

1. The first grouping is the residential development community, consisting of land

developers and builders, who are typically responsible for generating the majority

of the development charge revenues. Others, such as realtors, are directly

impacted by development charge policy. They are, therefore, potentially

interested in all aspects of the charge, particularly the quantum by unit type,

Page 8-2


projects to be funded by the D.C. and the timing thereof, and Town policy with

respect to development agreements, D.C. credits and front-ending requirements.

2. The second public grouping embraces the public at large and includes taxpayer

coalition groups and others interested in public policy.

3. The third grouping is the industrial/commercial/institutional development sector,

consisting of land developers and major owners or organizations with significant

construction plans, such as hotels, entertainment complexes, shopping centres,

offices, industrial buildings and institutions. Also involved are organizations such

as Industry Associations, the Chamber of Commerce, the Board of Trade and the

Economic Development Agencies, who are all potentially interested in Town

development charge policy. Their primary concern is frequently with the

quantum of the charge, gross floor area exclusions such as basements,

mechanical or indoor parking areas, or exemptions and phase-in or capping

provisions in order to moderate the impact.

8.2 Anticipated Impact of the Charge on Development

The establishment of sound development charge policy often requires the achievement

of an acceptable balance between two competing realities. The first is that high non-

residential development charges can, to some degree, represent a barrier to increased

economic activity and sustained industrial/commercial growth, particularly for capital

intensive uses. Also, in many cases, increased residential development charges can

ultimately be expected to be recovered via higher housing prices and can impact project

feasibility in some cases (e.g. rental apartments).

On the other hand, development charges or other Town capital funding sources need to

be obtained in order to help ensure that the necessary infrastructure and amenities are

installed. The timely installation of such works is a key initiative in providing adequate

service levels and in facilitating strong economic growth, investment and wealth

generation.

8.3 Implementation Requirements

8.3.1 Introduction

Once the Town has calculated the charge, prepared the complete background study,

carried out the public process and passed a new by-law, the emphasis shifts to

implementation matters.

Page 8-3


These include notices, potential appeals and complaints, credits, front-ending

agreements, subdivision agreement conditions and finally the collection of revenues and

funding of projects.

The sections which follow overview the requirements in each case.

8.3.2 Notice of Passage

In accordance with s.13 of the D.C.A., when a D.C. by-law is passed, the Town clerk

shall give written notice of the passing and of the last day for appealing the by-law (the

day that is 40 days after the day it was passed). Such notice must be given no later

than 20 days after the day the by-law is passed (i.e. as of the day of newspaper

publication or the mailing of the notice).

Section 10 of O.Reg. 82/98 further defines the notice requirements which are

summarized as follows:

notice may be given by publication in a newspaper which is (in the Clerk’s

opinion) of sufficient circulation to give the public reasonable notice, or by

personal service, fax or mail to every owner of land in the area to which the by-

law relates;

s.s.10(4) lists the persons/organizations who must be given notice; and

s.s.10(5) lists the eight items which the notice must cover.

8.3.3 By-law Pamphlet

In addition to the “notice” information, the Town must prepare a “pamphlet” explaining

each development charge by-law in force, setting out:

a description of the general purpose of the development charges;

the “rules” for determining if a charge is payable in a particular case and for

determining the amount of the charge;

the services to which the development charges relate; and

a general description of the general purpose of the Treasurer’s statement and

where it may be received by the public.

Where a by-law is not appealed to the O.M.B., the pamphlet must be readied within 60

days after the by-law comes into force. Later dates apply to appealed by-laws.

The Town must give one copy of the most recent pamphlet without charge, to any

person who requests one.

Page 8-4


8.3.4 Appeals

Sections 13-19 of the D.C.A., set out the requirements relative to making and

processing a D.C. by-law appeal and O.M.B. Hearing in response to an appeal. Any

person or organization may appeal a D.C. by-law to the O.M.B. by filing a notice of

appeal with the Town clerk, setting out the objection to the by-law and the reasons

supporting the objection. This must be done by the last day for appealing the by-law,

which is 40 days after the by-law is passed.

The Town is carrying out a public consultation process in order to address the issues

that come forward as part of that process, thereby avoiding or reducing the need for an

appeal to be made.

8.3.5 Complaints

A person required to pay a development charge, or his agent, may complain to the

Town Council imposing the charge that:

the amount of the charge was incorrectly determined;

the reduction to be used against the development charge was incorrectly

determined; or

there was an error in the application of the development charge.

Sections 20-25 of the D.C.A., set out the requirements that exist, including the fact that

a complaint may not be made later than 90 days after a D.C. (or any part of it) is

payable. A complainant may appeal the decision of Town Council to the O.M.B.

8.3.6 Credits

Sections 38-41 of the D.C.A., set out a number of credit requirements, which apply

where a Town agrees to allow a person to perform work in the future that relates to a

service in the D.C. by-law.

These credits would be used to reduce the amount of D.C.s to be paid. The value of

the credit is limited to the reasonable cost of the work which does not exceed the

average level of service. The credit applies only to the service to which the work

relates, unless the Town agrees to expand the credit to other services for which a

development charge is payable.

Page 8-5


8.3.7 Front-Ending Agreements

The Town and one or more landowners may enter into a front-ending agreement which

provides for the costs of a project which will benefit an area in the Town to which the

D.C. by-law applies. Such an agreement can provide for the costs to be borne by one

or more parties to the agreement who are, in turn, reimbursed in future by persons who

develop land defined in the agreement.

Part III of the D.C.A., (Sections 44-58) addresses front-ending agreements and removes

some of the obstacles to their use which were contained in the D.C.A., 1989.

Accordingly, the Town assesses whether this mechanism is appropriate for its use, as

part of funding projects prior to Town funds being available.

8.3.8 Severance and Subdivision Agreement Conditions

Section 59 of the D.C.A., prevents a Municipality from imposing directly or indirectly, a

charge related to development or a requirement to construct a service related to

development, by way of a condition or agreement under s.51 or s.53 of the Planning

Act, except for:

“local services, related to a plan of subdivision or within the area to which the

plan relates, to be installed or paid for by the owner as a condition of approval

under section 51 of the Planning Act;” and

“local services to be installed or paid for by the owner as a condition of approval

under Section 53 of the Planning Act.”

It is also noted that s.s.59(4) of the D.C.A. requires that the municipal approval authority

for a draft plan of subdivision under s.s.51(31) of the Planning Act, use its power to

impose conditions to ensure that the first purchaser of newly subdivided land is

informed of all the development charges related to the development, at the time the land

is transferred.

In this regard, if the Town in question is a commenting agency, in order to comply with

subsection 59(4) of the D.C.A. it would need to provide to the approval authority,

information regarding the applicable Town development charges related to the site.

If the Town is an approval authority for the purposes of section 51 of the Planning Act, it

would be responsible to ensure that it collects information from all entities which can

impose a development charge.

Page 8-2


The most effective way to ensure that purchasers are aware of this condition would be

to require it as a provision in a registered subdivision agreement, so that any purchaser

of the property would be aware of the charges at the time the title was searched prior to

closing a transaction conveying the lands.

Page A-1


Appendix A – Background Information on

Residential and Non-residential Growth

Forecast

Singles & Semi-

Detached

Multiple

Dwellings2 Apartments

3 OtherTotal

Households

Person Per

Unit (PPU)

Mid 1996 19,585 20,260 5,520 645 650 10 6,825 2.87

Mid 2001 21,297 22,030 6,095 865 620 5 7,585 2.81

Mid 2006 23,937 24,760 6,525 1,420 765 30 8,740 2.74

Mid 2011 25,325 26,200 7,070 1,645 860 40 9,615 2.63

Mid 2016 27,281 28,220 7,462 2,115 983 40 10,600 2.57

Mid 2021 29,327 30,330 7,580 2,342 1,810 40 11,772 2.49

Mid 2026 (Buildout) 31,201 32,270 7,692 2,557 2,593 40 12,882 2.42

Mid 1996 - Mid 2001 1,712 1,770 575 220 -30 -5 760

Mid 2001 - Mid 2006 2,640 2,730 430 555 145 25 1,155

Mid 2006 - Mid 2011 1,388 1,440 545 225 95 10 875

Mid 2011 - Mid 2016 1,956 2,020 392 470 123 0 985

Mid 2016 - Mid 2021 2,046 2,110 118 227 827 0 1,172

Mid 2016 - Mid 2026 (Buildout) 3,920 4,050 230 442 1,610 0 2,282


1. Census Undercount estimated at approximately 4%. Note: Population Including the Undercount has been rounded.



Source: Historical housing activity (2006-2015) based on Statistics Canada building permits, Catalogue 64-001-XIB

1. Growth Forecast represents start year.

SCHEDULE 1

TOWN OF GRIMSBY

RESIDENTIAL GROWTH FORECAST SUMMARY

Population

(Excluding

Census

Undercount)

Population

(Including

Census

Undercount)¹

Year

Housing Units

73

209

152

116

185

230

78

290

255

132

232 235 235 235 235

222 222 222 222 222

0

50

100

150

200

250

300

350

Ho

usin

g U

nit

s

Years

HOUSING FORECAST¹

Historical Low Density Medium Density High Density Historical Average

Source: Historical housing activity (2006‐2015) based on Statistics Canada building permits, Catalogue 64‐001‐XIB

Watson & Associates Economists Ltd. 02/08/2016H:\Grimsby\2016 DC Amendment\Growth\

Grimsby Growth Model Revised for 2016

Page A-2

TOWN OF GRIMSBY

ESTIMATE OF THE ANTICIPATED AMOUNT, TYPE AND LOCATION OF

DEVELOPMENT FOR WHICH DEVELOPMENT CHARGES CAN BE IMPOSED

2016- 2026 (Buildout) 176 442 1,610 2,228 4,049 (270) 3,779

2016- 2026 (Buildout) 54 - - 54 171 (30) 141

2016- 2026 (Buildout) 230 442 1,610 2,282 4,220 (300) 3,920



SCHEDULE 2

DEVELOPMENT TIMING TOTAL

GROSS

POPULATION EXISTING UNIT NET

Urban

Rural

LOCATION RESIDENTIAL

UNITS

SINGLES & SEMI-

DETACHEDMULTIPLES

1

Source: Watson & Associates Economists Ltd., 2016

Town of Grimsby

Residential distribution based on a combination of historical permit activity, available housing supply and discussions with Town of Grimsby staff regarding future development prospects.

APARTMENTS2

IN NEW UNITSPOPULATION

CHANGE

POPULATION

INCREASE

Watson & Associates Economists Ltd. 02/08/2016

H:\Grimsby\2016 DC Amendment\Growth\


Page A-3

POPULATION

Mid 2011 Population 25,325

Occupants of Units (2) 985

New Housing Units, multiplied by persons per unit (3) 2.47

Mid 2011 to Mid 2016 gross population increase 2,433 2,433

Decline in Housing Units (4) 9,615

Unit Occupancy, multiplied by ppu decline rate (5) -0.0496

Mid 2011 to Mid 2016 total decline in population -477 -477

Population Estimate to Mid 2016 27,281

Net Population Increase, Mid 2011 to Mid 2016 1,956

(1) 2011 population based on StatsCan Census unadjusted for Census Undercount.

(2)

(3) Average number of persons per unit (ppu) is assumed to be:

Persons % Distribution Weighted Persons

Structural Type Per Unit¹ of Estimated Units² Per Unit Average

Singles & Semi Detached 3.16 40% 1.26

Multiples (6) 2.13 48% 1.02

Apartments (7) 1.59 12% 0.20

Total 100% 2.47

¹ Based on 2011 Census custom database

² Based on Building permit/completion acitivty

(4) 2011 households taken from StatsCan Census.

(5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and

changing economic conditions.

(6) Includes townhomes and apartments in duplexes.

(7) Includes bachelor, 1 bedroom and 2 bedroom+ apartments.

SCHEDULE 3

TOWN OF GRIMSBY

CURRENT YEAR GROWTH FORECAST

MID 2011 TO MID 2016

Estimated residential units constructed, Mid 2011 to the beginning of the growth period, assuming a six month lag between

construction and occupancy.



Page A-4

POPULATION

Mid 2016 Population 27,281

Occupants of Units (2) 2,282

New Housing Units, multiplied by persons per unit (3) 1.85

Mid 2016 to Mid 2026 gross population increase 4,220 4,220

Decline in Housing Units (4) 12,660

Unit Occupancy, multiplied by ppu decline rate (5) -0.0237

Mid 2016 to Mid 2026 total decline in population -300 -300

Population Estimate to Mid 2026 31,201

Net Population Increase, Mid 2016 to Mid 2026 3,920

(1) Mid 2016 Population based on:

(2) Based upon forecast building permits/completions assuming a lag between construction and occupancy.

(3) Average number of persons per unit (ppu) is assumed to be:

Persons % Distribution Weighted Persons

Structural Type Per Unit¹ of Estimated Units² Per Unit Average

Singles & Semi Detached 3.16 10% 0.32

Multiples (6) 2.13 19% 0.41

Apartments (7) 1.59 71% 1.12

one bedroom or less 1.25

two bedrooms or more 1.88

Total 100% 1.85

¹ Persons per unit based on adjusted Statistics Canada Custom 2011 Census database.

² Forecast unit mix based upon historical trends and housing units in the development process.

(4) Mid 2016 households based upon 9,615 (2011 Census) + 985 (Mid 2011 to Mid 2016 unit estimate) = 10,600

(5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions.

(6) Includes townhomes and apartments in duplexes.

(7) Includes bachelor, 1 bedroom and 2 bedroom+ apartments.

MID 2016 TO MID 2026 (BUILDOUT)

2011 Population (25,325) + Mid 2011 to Mid 2016 estimated housing units to beginning of forecast period (985 x 2.47 = 2,433) +

(9,615 x -0.0496 = -477) = 27,281

SCHEDULE 4

TOWN OF GRIMSBY

TEN YEAR GROWTH FORECAST



Page A-5

SCHEDULE 5

SUMMARY OF RESIDENTIAL LAND SUPPLY- URBAN

By Status

Stage of Development

and Low Medium High

Plan/Owner Density1

Density2

Density3

Total

21 Beverly Street 3 3

26 Bedford Park Condos 6 6

31 Main Street East at Brook Road 4 4

35 Lake Street at Town Boundary 1 1

Various Existing Vacant Lots 25 25

Registered But Not Built Sub-total 39 - - 39

% Allocation 100.0% 0.0% 0.0% 100.0%

15 Main at to Doran 4 4

22 Main Street at Nelles 14 14

25 Phelps Central Avenue 87 87

Draft Approval & Preliminary Plans Sub-total - 101 4 105

% Allocation 0.0% 96.2% 3.8% 100.0%

20 Main at Cemetery Road 18 18

Unapproved Applications - 18 - 18

% Allocation 0.0% 100.0% 0.0% 100.0%

Other Lands

3 Winston Oaks West Side 92 92

4 Lakelawn North Service Road 130 130

5 Place Polonaise 193 226 419

6 Concorde Place 317 317

7 Fifth Wheel 90 600 690

10 North Service Road at Olive Street 2 2

11 Beside Jordan Heights 3 3

14 Slessor Boulevard 8 48 56

17 Bowling Alley 35 35

18 Forans Marina 32 32

22 Main Street at Nelles 26 26

23 Lake Street at Sewage TP 16 16

27 Main Street at Teeter 4 4

28 Bartlett at Main 25 25

29 Bartlett at Central 20 20

30 Bartlett at Escarpment 20 20

31 Planet Niteclub 179 179

Draft Approval & Preliminary Plans Sub-total 137 323 1,606 2,066

% Allocation 6.6% 15.6% 77.7% 100.0%

Total Urban 176 442 1,610 2,228

% Allocation 7.9% 19.8% 72.3% 100.0%

Ma

p Id

1. Single-detached/semi-detached represents low-density.

Source: Town of Grimsby Planning Dept. May, 2016

2. Townhouses and apartments in duplex/triplex represents medium-density.

3. Apartments < or > 5 storeys represents high-density.

Unit Type

Registered Development

Draft Approval Development

Unapproved Applications

Page A-6

RESIDENTIAL BUILDING PERMITS

Year Total

108 17 0 125

2006 73 0 0 73

2007 142 67 0 209

2008 92 60 0 152

2009 86 30 0 116

2010 137 48 0 185

Sub-total 530 205 0 735

Average (2006 - 2010) 106 41 0 147

% Breakdown 72.1% 27.9% 0.0% 100.0%

2011 78 152 0 230

2012 45 33 0 78

2013 57 197 36 290

2014 163 88 4 255

2015 49 0 83 132

Sub-total 392 470 123 985

Average (2011 - 2015) 78 94 25 197

% Breakdown 39.8% 47.7% 12.5% 100.0%

2006 - 2015

Total 922 675 123 1,720

Average 92 68 12 172

% Breakdown 53.6% 39.2% 7.2% 100.0%

Sources:

Building Permits - Statistics Canada Publication, 64-001XIB



Singles & Semi

DetachedMultiples

1Apartments

2

SCHEDULE 6

TOWN OF GRIMSBY

HISTORICAL RESIDENTIAL BUILDING PERMITS

2006-2015



Page A-7

Age of SINGLES AND SEMI-DETACHED

Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total Adjusted PPU¹ 10 Year Average

1-5 - - 2.000 3.068 - 3.096 3.06

6-10 - - - 3.330 - 3.292 3.26 3.16

11-15 - - 1.933 3.117 - 2.895 2.87

16-20 - - - 2.914 - 3.245 3.23

20-25 - - - 3.453 - 3.347 3.34

25-35 - - - 2.905 - 2.901 2.90

35+ 0.381 - 2.246 2.780 4.000 2.728 2.73

Total 0.667 - 2.191 2.942 4.079 2.892

Age of MULTIPLES2


1-5 - - 1.842 2.179 - 1.962 1.96

6-10 - - 2.128 2.421 - 2.293 2.29 2.13

11-15 - - 1.600 2.824 - 2.024 2.02

16-20 - - 1.158 2.353 - 1.730 1.73

20-25 - - - 2.192 - 2.241 2.24

25-35 - - - - - - -

35+ 0.333 - 3.636 4.471 - 2.473 2.47

Total 0.585 - 1.964 2.560 - 2.170

SCHEDULE 7a

TOWN OF GRIMSBY

PERSONS PER UNIT BY AGE AND TYPE OF DWELLING

(2011 CENSUS)



Page A-8

Age of SINGLES AND SEMI-DETACHED


1-5 - 1.621 2.010 3.058 4.164 2.887 2.83

6-10 - 2.214 2.060 3.173 3.672 3.050 3.02 2.92

11-15 - 2.143 1.876 2.988 4.188 2.889 2.87

16-20 - - 1.926 2.960 4.209 2.908 2.90

20-25 - 1.941 2.209 2.930 3.767 2.923 2.92

25-35 - 1.696 2.000 2.922 3.329 2.846 2.84

35+ 2.429 1.643 1.992 2.603 3.525 2.511 2.51

Total 2.194 1.681 1.995 2.726 3.648 2.631

Age of MULTIPLES2


1-5 - 1.400 1.663 2.383 - 2.069 1.96

6-10 - 1.520 1.846 2.273 - 1.988 1.94 1.95

11-15 - 1.333 1.621 2.545 - 1.977 1.95

16-20 - 1.900 1.790 2.761 - 2.373 2.36

20-25 - - 1.926 2.508 - 2.252 2.25

25-35 - 1.550 1.863 2.991 - 2.569 2.57

35+ 1.222 1.331 2.032 2.682 3.768 2.284 2.28

Total 0.712 1.378 1.891 2.631 4.566 2.234

Age of APARTMENTS3


1-5 0.818 1.192 1.587 3.429 - 1.516 1.52

6-10 - 1.421 1.513 - - 1.656 1.66 1.59

11-15 - 1.254 1.667 2.531 - 1.701 1.70

16-20 - 1.191 1.761 2.475 - 1.572 1.57

20-25 - 1.274 1.755 2.806 - 1.632 1.63

25-35 1.273 1.352 1.679 2.800 - 1.592 1.59

35+ 1.061 1.230 1.714 2.629 2.905 1.577 1.58

Total 1.029 1.241 1.710 2.667 2.905 1.585

Age of ALL DENSITY TYPES

Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total

1-5 1.818 1.319 1.851 2.946 4.138 2.602

6-10 - 1.678 1.918 3.079 3.667 2.816

11-15 - 1.411 1.758 2.920 4.012 2.599

16-20 - 1.307 1.808 2.897 4.176 2.480

20-25 - 1.335 1.906 2.887 3.611 2.610

25-35 1.000 1.398 1.786 2.920 3.440 2.496

35+ 1.573 1.318 1.906 2.606 3.499 2.338

Total 1.500 1.333 1.886 2.714 3.606 2.420



Note: Does not include Statistics Canada data classified as 'Other'

PPU Not calculated for samples less than or equal to 50 dwelling units, and does not include institutional population

SCHEDULE 7b

NIAGARA REGION

PERSONS PER UNIT BY AGE AND TYPE OF DWELLING

(2011 CENSUS)

1. The Census PPU has been adjusted to account for the downward PPU trend which has been recently experienced in both new and

older units, largely due to the aging of the population



Page A-9

3.103.29

2.90

3.24 3.35

2.902.73

2.07 1.99 1.98

2.372.25

2.57

2.28

1.521.66 1.70

1.57 1.63 1.59 1.58

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

1-5 6-10 11-15 16-20 20-25 25-35 35+

Pers

on

s P

er

Dw

ell

ing

Age of Dwelling

SCHEDULE 8

PERSONS PER UNIT BY STRUCTURAL TYPE AND AGE OF DWELLING (2011 CENSUS)

Singles and Semi-Detached Multiples Apartments

TOWN OF GRIMSBY

Apartment PPUs are based on Niagara Region.



Page A-10

Employment

2001 21,297 0.019 0.037 0.064 0.110 0.065 0.296 0.031 0.327 405 795 1,368 2,353 1,375 6,295 660 6,955 5,500

2006 23,937 0.013 0.044 0.076 0.118 0.058 0.308 0.031 0.340 300 1,065 1,820 2,815 1,380 7,380 750 8,130 6,315

2011 25,325 0.025 0.047 0.071 0.143 0.051 0.336 0.032 0.368 630 1,180 1,790 3,610 1,290 8,500 810 9,310 7,320

Mid 2016 27,281 0.021 0.046 0.072 0.148 0.061 0.348 0.034 0.373 560 1,241 1,910 3,930 1,609 9,251 938 10,189 8,009

Mid 2026 (Buildout) 31,201 0.019 0.046 0.065 0.147 0.057 0.334 0.032 0.365 560 1,435 2,022 4,583 1,778 10,379 998 11,377 8,944

2001 - 2006 2,640 -0.006 0.007 0.012 0.007 -0.007 0.013 0.000 0.013 -105 270 453 463 5 1,085 90 1,175 815

2006 - 2011 1,388 0.0123 0.0021 -0.0054 0.0249 -0.0067 0.0273 0.0007 0.0280 330 115 -30 795 -90 1,120 60 1,180 1,005

2011 - Mid 2016 1,956 -0.0036 -0.0011 0.0012 0.0056 0.0099 0.0119 0.0024 0.0059 -70 61 120 320 319 751 128 879 689

Mid 2016 - Mid 2026 (Buildout) 3,920 -0.0021 0.0005 -0.0071 -0.0012 -0.0038 -0.0136 -0.0024 -0.0088 0 194 112 653 169 1,128 60 1,188 934

2001 - 2006 528 -0.00130 0.00143 0.00236 0.00143 -0.00138 0.00255 0.00007 0.00261 -21 54 91 93 1 217 455 856 347

2006 - 2011 278 0.0025 0.0004 -0.0011 0.0050 -0.0013 0.0055 0.0001 0.0056 66 23 -6 159 -18 224 12 236 201

2011 - Mid 2016 652 -0.00119 -0.00036 0.00039 0.00185 0.00330 0.00398 0.00080 0.00195 -23 20 40 107 106 250 43 293 230

Mid 2016 - Mid 2026 (Buildout) 392 -0.00021 0.00005 -0.00071 -0.00012 -0.00038 -0.00136 -0.00024 -0.00088 0 19 11 65 17 113 6 119 93


1. Statistics Canada defines no fixed place of work (NFPOW) employees as "persons who do not go from home to the same work place location at the beginning of each shift". Such persons include building and landscape

contractors, travelling salespersons, independent truck drivers, etc.

Total (Excluding

NFPOW and Work

at Home)

Incremental Change

Annual Average

Employment

NFPOW1

Total

Including

NFPOW

NFPOW ¹Work at

HomeIndustrial

Commercial/

Population

Related

Institutional Total

Activity Rate

Total

Employment

(Including

NFPOW)

EMPLOYMENT FORECAST, 2016 TO BUILDOUT

SCHEDULE 9a

TOWN OF GRIMSBY

Period PopulationPrimary

Work at

HomeIndustrial

Commercial/

Population

Related

Institutional Total Primary



Page A-11

2001 21,297 405 1,368 2,353 1,375 5,500

2006 23,937 300 1,820 2,815 1,380 6,315

2011 25,325 630 1,790 3,610 1,290 7,320

Mid 2016 27,281 560 1,910 3,930 1,609 8,009 2,482,813 2,161,664 1,126,500 5,770,977

Mid 2026 (Buildout) 31,201 560 2,022 4,583 1,778 8,944 2,628,413 2,520,866 1,244,911 6,394,190

2001 - 2006 2,640 -105 453 463 5 815

2006 - 2011 1,388 330 -30 795 -90 1,005

2011 - Mid 2016 1,956 -70 120 320 319 689 155,813 176,164 223,500 555,477

Mid 2016 - Mid 2026 (Buildout) 3,920 0 112 653 169 934 145,600 359,202 118,411 623,213

2001 - 2006 528 -21 91 93 1 163

2006 - 2011 278 66 -6 159 -18 201

2011 - Mid 2016 652 -23 40 107 106 230 51,938 58,721 74,500 185,159

Mid 2016 - Mid 2026 (Buildout) 392 0 11 65 17 93 14,560 35,920 11,841 62,321


1. Square Foot Per Employee Assumptions

Industrial 1,300

Commercial/ Population Related 550

Institutional 700

Incremental Change

Annual Average

Industrial

Commercial/

Population

Related

Institutional Total Primary Industrial

Commercial/

Population

Related

Institutional Total

SCHEDULE 9b

TOWN OF GRIMSBY

EMPLOYMENT GROSS FLOOR AREA (GFA) FORECAST, 2011 TO BUILDOUT

Period Population

Employment Gross Floor Area in Square Feet (Estimated)¹

Page A-12

ESTIMATE OF THE ANTICIPATED AMOUNT, TYPE AND LOCATION OF

NON-RESIDENTIAL DEVELOPMENT FOR WHICH DEVELOPMENT CHARGES CAN BE IMPOSED

2016- 2026 (Buildout) 138,320 352,377 118,411 609,108 915

2016- 2026 (Buildout) 7,280 6,825 - 14,105 19

2016- 2026 (Buildout) 145,600 359,202 118,411 623,213 934

1. Employment Increase does not include No Fixed Place of Work or Work at Home.

2. Square feet per employee assumptions:

Industrial 1,300

Commercial 550

Institututional 700

Town of Grimsby

Source: Watson & Associates Economists Ltd., 2016

Rural

GFA S.F. GFA S.F. GFA S.F. GFA S.F. INCREASE1LOCATION

Urban

EMPLOYMENTDEVELOPMENT TIMING INDUSTRIAL COMMERCIAL INSTITUTIONAL TOTAL NON-RES

SCHEDULE 9c

Page A-13

New Improve Additions Total New Improve Additions Total New Improve Additions Total New Improve Additions Total

Subtotal (2006-2010 2,037 4,957 2,522 9,516 23,777 7,883 5,971 37,632 35,641 569 8,419 44,628 61,455 13,409 16,913 91,776

Percentage of Total 21% 52% 27% 100% 63% 21% 16% 100% 80% 1% 19% 100% 67% 15% 18% 100%

Average(2006-2010) 407 991 504 1,903 4,755 1,577 1,194 7,526 7,128 114 1,684 8,926 12,291 2,682 3,383 18,355Subtotal (2011-2015 4,804 881 1,685 7,370 7,425 19,860 2,198 29,483 1,300 3,349 10,635 15,284 13,529 24,089 14,518 52,136

Percentage of Total 65% 12% 23% 100% 25% 67% 7% 100% 9% 22% 70% 100% 26% 46% 28% 100%

Average(2011-2016) 961 176 337 1,474 1,485 3,972 440 5,897 260 670 2,659 3,057 2,706 4,818 2,904 10,427

2006-2015

Period Total 12,574 85,556 88,073 186,203

2006-2015 Average 1,143 7,778 8,007 16,928% Breakdown 6.8% 45.9% 47.3% 100.0%

SOURCE: STATISTICS CANADA PUBLICATION, 64-001-XIB

Note: Inflated to year-end 2015 (January, 2016) dollars using Reed Construction Cost Index

SCHEDULE 10

TOWN OF GRIMSBY

NON-RESIDENTIAL CONSTRUCTION VALUE

YEARS 2006 - 2015

(000's 2016$)

YEAR TotalInstitutionalIndustrial Commercial



Page A-14

1996 2001 2006 2011 96-01 01-06 06-11Comments

Employment by industry

1.0 Primary Industry Employment Categories which relate to

1.1 All primary 0 505 490 175 505 -15 -315 local land-based resources.

Sub-total 0 505 490 175 505 -15 -315

2.0 Industrial and Other Employment

2.1 Manufacturing 0 755 925 765 755 170 -160 Categories which relate

2.2 Wholesale trade 0 310 450 440 310 140 -10 primarily to industrial land

2.3 Construction 0 240 265 275 240 25 10 supply and demand.

2.4 Transportation, storage, communication and other utility 0 288 440 328 288 153 -113

Sub-total 0 1,593 2,080 1,808 1,593 488 -273

3.0 Population Related Employment

3.1 Retail trade 0 965 1,055 1,030 965 90 -25 Categories which relate

3.2 Finance, insurance, real estate operator and insurance agent 0 305 475 480 305 170 5 primarily to population

3.3 Business service 0 503 525 448 503 23 -78 growth within the

3.4 Accommodation, food and beverage and other service 0 890 1,250 1,110 890 360 -140 municipality.

Sub-total 0 2,663 3,305 3,068 2,663 643 -238

4.0 Institutional

4.1 Government Service 0 95 150 170 95 55 20

4.2 Education service, Health, Social Services 0 1,440 1,355 1,675 1,440 -85 320

Sub-total 0 1,535 1,505 1,845 1,535 -30 340

Total Employment 0 6,295 7,380 6,895 6,295 1,085 -485

Population 19,585 21,297 23,937 25,325 1,712 2,640

Employment to Population Ratio

Industrial and Other Employment 0.00 0.07 0.09 0.07 0.07 0.01

Population Related Employment 0.00 0.13 0.14 0.12 0.13 0.01

Institutional Employment 0.00 0.07 0.06 0.07 0.07 -0.01

Primary Industry Employment 0.00 0.02 0.02 0.01 0.02 0.00

Total 0.00 0.30 0.31 0.27 0.30 0.01

Source: Statistics Canada Employment by Place of Work

Note: 1996-2011 employment figures are classified by Standard Industrial Classification (SIC) Code

SCHEDULE 11

TOWN OF GRIMSBY

EMPLOYMENT TO POPULATION RATIO BY MAJOR EMPLOYMENT SECTOR, 1996 TO 2011

Year Change



Page A-15

Page B-1


Appendix B – Level of Service

Page B-2


Cost (per capita)

Services Related to a Highway $6,741.30 0.0037 km of roadways 1,821,973 per lane km 26,425,896

Related Facilities $149.90 0.9812 ft² of building area 153 per ft² 587,608

Related Vehicles $158.86 0.0017 No. of vehicles and equipment 93,447 per vehicle 622,731

Fire Facilities $137.18 0.4597 ft² of building area 298 per ft² 537,746

Fire Vehicles $151.13 0.0003 No. of vehicles 503,767 per vehicle 592,430

Fire Small Equipment and Gear $18.55 0.0017 No. of equipment and gear 10,912 per Firefighter 72,716

Parking Services Parking Spaces $19.41 0.0063 No. of spaces 3,081 per space 76,087

Parkland Development $248.96 0.0040 No. of developed parkland acres 62,240 per acre 975,923

Parkland Amenities $129.53 0.0034 No. of parkland amenities 38,097 per amenity 507,758

Parks and Recreation Vehicles and Equipment $39.85 0.0009 No. of vehicles and equipment 44,278 per vehicle 156,212

Indoor Recreation Facilities $1,454.68 7.5870 ft² of building area 192 per ft² 5,702,346

Library Facilities $241.60 0.6341 ft² of building area 381 per ft² 947,072

Library Collection Materials $68.28 2.1257 No. of library collection items 32 per collection item 267,658

APPENDIX B - LEVEL OF SERVICE CEILING

TOWN OF GRIMSBY

SUMMARY OF SERVICE STANDARDS AS PER DEVELOPMENT CHARGES ACT, 1997

Maximum

Ceiling LOS

Library Services

Services Related to a

Highway and Related

Infrastructure

10 Year Average Service Standard

Quality (per capita)Quantity (per capita)Service Category Sub-Component

Fire Protection Services

Indoor and Outdoor

Recreation Services

Page B-3


Town of Grimsby

Service Standard Calculation Sheet

Service: Services Related to a Highway

Unit Measure: km of roadways

Description 2006 2007 2008 2009 2010 2011 2012 2013 2014 20152016 Value

($/km)

Collectors - Rural kilometers

2 lane 49 49 50 50 50 50 50 50 50 50 $1,229,000

Collectors - Urban kilometers

2 lane 41 43 43 43 43 43 47 47 47 47 $2,457,000

Total 90 92 93 93 93 93 97 97 97 97

Population 23,937 24,032 24,472 24,744 24,938 25,325 25,791 25,917 26,467 27,075

Per Capita Standard 0.0038 0.0038 0.0038 0.0038 0.0037 0.0037 0.0038 0.0037 0.0037 0.0036

10 Year Average 2006-2015

Quantity Standard 0.0037

Quality Standard $1,821,973

Service Standard $6,741

DC Amount (before deductions) 10 Year

Forecast Population 3,920

$ per Capita $6,741

Eligible Amount $26,425,896

Page B-4


Town of Grimsby


Service: Services Related to a Highway - Related Facilities

Unit Measure: ft² of building area

Description 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2016 Bld'g

Value

($/ft²)

Value/ft²

with land,

site works,

etc.

Operations Centre 16,459 16,459 16,459 16,459 17,059 17,059 17,059 17,059 17,059 17,059 $132 $153

Winston Road Barn 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 $226 $256

Sand/Salt Dome 6,648 6,648 6,648 6,648 6,648 6,648 6,648 6,648 6,648 6,648 $113 $132

Total 24,407 24,407 24,407 24,407 25,007 25,007 25,007 25,007 25,007 25,007

Population 23,937 24,032 24,472 24,744 24,938 25,325 25,791 25,917 26,467 27,075




Quality Standard $153

Service Standard $150



$ per Capita $150

Eligible Amount $587,608

Page B-5


Town of Grimsby


Service: Services Related to a Highway - Related Vehicles

Unit Measure: No. of vehicles and equipment


($/Vehicle)

Dump Truck, Plow, Wing 6 6 7 7 7 7 7 7 7 7 $242,000

Pickup Truck 3 3 3 4 4 5 5 5 5 5 $25,000

Pickup Truck 2 2 2 2 2 2 2 2 2 2 $35,000

Pickup Truck 1 1 1 1 1 1 1 1 1 1 $55,000

Dump Truck (1/2 tonne) 3 3 3 3 3 4 4 4 4 4 $55,000

Van (International) - - - - - - - 1 1 1 $124,000

Van (Ford) 2 2 2 1 1 1 1 1 1 1 $55,000

Sewer Flusher 1 1 1 1 1 1 1 1 1 1 $220,000

Street Flusher 1 1 1 1 1 1 1 1 1 1 $265,000

Trackless & Snow Blower 2 2 2 2 3 3 3 3 3 3 $160,000

Backhoe (John Deere) 1 1 1 1 1 1 1 1 1 1 $195,000

Backhoe (Case) 1 1 1 1 1 1 1 1 1 1 $155,000

Loader 1 1 1 1 1 1 1 1 1 1 $195,000

Progator - - 1 1 1 1 1 1 1 1 $22,000

Portable Steamer 1 1 1 1 1 1 1 1 1 1 $30,000

Concrete Saw 1 1 1 1 1 1 1 1 1 1 $7,000

Mowers 2 2 2 2 2 2 2 3 3 3 $15,000

Tractor - - - - - - 1 1 1 1 $100,000

Air Compressor 1 1 1 1 1 1 1 1 1 1 $25,000

Line Painter 1 1 1 1 1 1 1 1 1 1 $12,000

Vibrator Roller 1 1 1 1 1 1 1 1 1 1 $50,000

Trash Pump 2 2 1 1 1 1 1 1 1 1 $25,000

W/C Brush Chipper 1 1 1 1 1 1 1 1 1 1 $45,000

Precision Locating Kit - 1 1 1 1 1 1 1 1 1 $7,000

SeeSnake Sanitary Sewer Video Camera 1 1 1 1 1 1 1 1 1 1 $15,000

Vacuum Excavator / Hydrovac - - - 1 1 1 1 1 1 1 $35,000

Valve Exerciser - - - 1 1 1 1 1 1 1 $55,000

Enclosed Trailer - - - - - 1 1 1 1 1 $10,000

Boring Machine 2 2 - - - - - - - - $25,800

Cub Cadet Utility Vehicle 1 1 1 - - - - - - - $16,800

Total 38 39 38 39 40 43 44 46 46 46

Population 23,937 24,032 24,472 24,744 24,938 25,325 25,791 25,917 26,467 27,075




Quality Standard $93,447




$ per Capita $159


Page B-6


Town of Grimsby


Service: Fire Facilities


Description 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2016 Bld'g

Value

($/ft²)

Value/ft²

with land,

site works,

etc.

Station #1 (Headquarters) 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 $288 $325

Station #2 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 $113 $132

Total 11,600 11,600 11,600 11,600 11,600 11,600 11,600 11,600 11,600 11,600

Population 23,937 24,032 24,472 24,744 24,938 25,325 25,791 25,917 26,467 27,075








$ per Capita $137


Page B-7


Town of Grimsby


Service: Fire Vehicles

Unit Measure: No. of vehicles


($/Vehicle)

1981 Triple Comb. Pumper 1 1 1 - - $670,000

1987 Tanker 1 1 1 1 - - $258,000

1993 Plymouth Caravan Command - - $28,200

1994 Freightliner Trip. Comb. Pump 1 1 1 1 1 1 1 1 1 1 $670,000

1995 Taurus Command Car - - $25,800

1999 Astro Van Command Vehicle 1 1 - - $41,200

2001 Spartan Glad Quint 1 1 1 1 1 1 1 1 1 1 $1,236,000

2002 GMC Jimmy Command Car 1 1 1 1 1 - - $46,400

2003 Spartan Ad. Heavy Rescue 1 1 1 1 1 1 1 1 1 1 $567,000

2008 KME Triple Comp. Pumper 1 1 1 1 1 1 1 1 $773,000

2009 F-250 Command Vehicle 1 1 1 1 1 1 1 1 $67,000

2005 Ford Explorer Command Vehicle 1 1 1 1 1 1 1 1 1 1 $67,000

2010 GMC Acadia (repurpose Prevention 2017) 1 1 1 1 1 1 $64,680

2011 Freightliner Tanker 1 1 1 1 1 $360,000

2013 Ford Explorer (repurpose Prevention 2018) 1 1 1 1 $67,680

2014 Dodge Ram 3500 1 1 1 $78,000

Total 8 8 9 8 8 8 9 10 10 10

Population 23,937 24,032 24,472 24,744 24,938 25,325 25,791 25,917 26,467 27,075








$ per Capita $151


Page B-8


Town of Grimsby


Service: Fire Small Equipment and Gear

Unit Measure: No. of equipment and gear


($/item)

Firefighters 42 42 42 42 42 42 42 42 42 48 $11,000

Total 42 42 42 42 42 42 42 42 42 48

Population 23,937 24,032 24,472 24,744 24,938 25,325 25,791 25,917 26,467 27,075








$ per Capita $19


Page B-9


Town of Grimsby


Service: Parking Spaces

Unit Measure: No. of spaces


($/space)

North Side Parking Lot 49 49 49 49 49 49 49 49 49 49 $3,100

Christie St. Parking Lot 30 30 30 30 30 30 30 30 30 30 $3,100

Ontario St. Parking Lot 49 49 49 49 49 49 49 49 49 49 $3,100

Elizabeth St. Parking Lot 30 30 30 30 30 30 30 30 30 30 $3,100

Total 158 158 158 158 158 158 158 158 158 158

Population 23,937 24,032 24,472 24,744 24,938 25,325 25,791 25,917 26,467 27,075








$ per Capita $19


Page B-10


Town of Grimsby


Service: Parkland Development

Unit Measure: No. of developed parkland acres


($/Acre)

Neighbourhood/Community Parks 23.3 23.3 23.3 23.3 23.3 23.3 23.3 23.3 23.3 23.3 $63,000

Neighbourhood Parks 23.6 23.6 23.6 23.6 23.6 23.6 23.6 23.6 23.6 23.6 $63,000

Community Parks 37.1 37.1 37.1 37.1 37.1 37.1 37.1 37.1 37.1 37.1 $63,000

Sub-Neighbourhood Parks 14.1 14.1 15.0 15.0 15.0 16.0 16.0 17.0 17.0 18.4 $63,000

Total 98 98 99 99 99 100 100 101 101 102

Population 23,937 24,032 24,472 24,744 24,938 25,325 25,791 25,917 26,467 27,075








$ per Capita $249


Page B-11


Town of Grimsby


Service: Parkland Amenities

Unit Measure: No. of parkland amenities


($/item)

NEIGHBOURHOOD/COMMUNITY PARKS:

Ball Diamonds - Lit 1 1 1 1 1 1 1 1 1 1 $234,600

Ball Diamonds 4 4 4 4 4 4 4 4 4 4 $44,100

Play Structures/Equipment 2 2 2 2 2 2 2 2 2 2 $3,200

Swing Sets 2 2 2 2 2 2 2 2 2 2 $3,200

Sand Volleyball 1 1 1 1 1 1 1 1 1 1 $7,900

Splash Pad 1 1 1 1 1 1 1 1 $309,000

Tot Splash 1 1 1 $51,500

NEIGHBOURHOOD PARKS:

Ball Diamonds 2 2 2 2 2 2 2 2 2 2 $44,100


Swing Sets 6 8 9 9 9 9 9 9 9 9 $3,200

Tennis Court - Lit 1 1 1 1 1 1 1 1 1 1 $102,300

Hard Court 3 3 4 4 4 4 4 4 4 4 $55,100

Soccer Field 1 1 1 1 1 1 1 1 1 1 $30,900

COMMUNITY PARKS:

Ball Diamonds - Lit 1 1 1 1 1 1 1 1 1 1 $234,600

Ball Diamonds 3 3 3 3 3 3 3 3 3 3 $48,800


Swing Sets 1 1 1 1 1 1 1 1 1 1 $3,200

Picnic Shelter 1 1 1 1 1 1 1 1 1 1 $31,500

Soccer Field 3 3 3 3 3 3 3 3 3 3 $30,900

Equipment Storage Shed 1 1 1 1 1 1 1 1 1 1 $37,700

Tennis Court 4 4 4 4 4 4 4 4 4 4 $62,100

SUB-NEIGHBOURHOOD PARKS:

Ball Diamonds 2 2 2 2 2 2 2 2 2 2 $44,100


Swing Sets 9 9 10 10 10 10 10 10 10 12 $3,200

Hard Court 2 2 2 2 2 2 2 2 2 2 $23,600

SCHOOLS:

Soccer 6 6 6 6 6 6 6 7 7 7 $51,500

Baseball 2 2 2 2 2 2 2 2 2 2 $44,100

Total 77 80 86 86 86 87 87 90 90 94

Population 23,937 24,032 24,472 24,744 24,938 25,325 25,791 25,917 26,467 27,075








$ per Capita $130


Page B-12


Town of Grimsby


Service: Parks and Recreation Vehicles and Equipment

Unit Measure: No. of vehicles and equipment


($/Vehicle)

Canadian Explorer Trailer 1 1 1 1 1 1 1 1 1 1 $7,900

John Deere 2155 Tractor 1 1 1 1 1 1 1 1 1 1 $55,100


Hitchman Trailer 1 1 1 1 1 1 1 1 1 1 $7,900

Melroe Bobcat (bucket/fork) 1 1 1 1 1 1 1 1 1 1 $31,500

14' Trailer Tandem (for #244) 1 1 1 1 1 1 1 1 1 1 $7,900

Bannerman Turf Topper 1 1 1 1 1 1 1 1 1 1 $7,900

Ford F150 Pickup Truck 2 2 2 2 2 2 2 2 2 2 $52,000

Ford 350 Crew Cap & Plow 1 1 1 1 1 1 1 1 1 1 $75,600


Ford F150 Pickup Truck 1 1 1 1 1 1 1 1 1 1 $31,500

Olympia Ice Resurfacer - - $78,700

Olympia Ice Resurfacer 2 2 2 2 2 2 2 2 2 2 $78,700

GMC Sierra 1500 Pickup Truck 1 1 1 1 - - $28,700

Cushman 951D Riding Mower 1 1 1 1 1 1 1 - - $86,100

4WD John Deere Utility Tractor/Loader 1 1 1 1 1 1 1 1 1 1 $55,100

Jacobson 9016 wide area mower 1 1 1 1 1 1 1 1 1 1 $56,700

John Deere 1600 wide area mower 1 1 1 $49,400

Sterling Dump Truck & Plow 1 1 1 1 1 1 1 1 $97,900

John Deere Track Mower 1 1 1 1 1 1 1 $25,800

Hitchman Z Trailer 1 1 1 1 1 1 $10,300

New Holland Tractor W/loader/Plow 1 1 1 1 1 1 1 1 1 1 $77,300

Sky Jack Scissor Lift 1 1 1 1 1 1 1 1 1 1 $30,900

Total 20 20 21 22 22 22 22 22 22 22

Population 23,937 24,032 24,472 24,744 24,938 25,325 25,791 25,917 26,467 27,075








$ per Capita $40


Page B-13


Town of Grimsby


Service: Indoor Recreation Facilities


Description 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2016 Bld'g

Value

($/ft²)

Value/ft²

with land,

site works,

etc.

Grimsby Peach King Centre (Includes

Arena//Rec. Ser. Office)93,000 93,000 93,000 93,000 93,000 93,000 93,000 93,000 93,000 93,000 $170 $194

Senior's Centre 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 $204 $232

Calder Community Centre 5,700 5,700 5,700 5,700 5,700 5,700 5,700 5,700 5,700 5,700 $158 $182

Grand Ave. Community Hall 3,700 3,700 3,700 3,700 3,700 3,700 3,700 3,700 3,700 3,700 $294 $331

Lions Pool and Change House 4,838 4,838 4,838 4,838 4,838 4,838 6,356 6,356 6,356 6,356 $543 $605

Tennis Club House 400 400 400 400 400 400 400 400 400 400 $124 $144

Soccer Club House 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 $158 $182

Baseball Club House 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 $124 $144

Park Shop 600 600 600 600 600 600 600 600 600 600 $124 $144

Maintenance Shop 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 $158 $182

Pumphouse Building 1,744 1,744 1,744 1,744 1,744 1,744 1,744 1,744 1,744 1,744 $158 $182

Pumphouse Building - Garage 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292 $23 $32

Lawn Bowling Facility 11,840 11,840 11,840 11,840 11,840 11,840 11,840 11,840 11,840 11,840 $11 $20

Skate Park Facility 43,056 43,056 43,056 43,056 43,056 43,056 43,056 43,056 43,056 43,056 $158 $182

Alway Community Centre 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 $158 $182

Outdoor Rink - - - - - 7,200 7,200 7,200 7,200 7,200 $57 $70

Total 187,370 187,370 187,370 187,370 187,370 194,570 196,088 196,088 196,088 196,088

Population 23,937 24,032 24,472 24,744 24,938 25,325 25,791 25,917 26,467 27,075





Service Standard $1,455



$ per Capita $1,455

Eligible Amount $5,702,346

Page B-14


Town of Grimsby


Service: Library Facilities


Description 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2016 Bld'g

Value

($/ft²)

Value/ft²

with land,

site works,

etc.

Grimsby Public Library 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 $339 $381

Total 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000

Population 23,937 24,032 24,472 24,744 24,938 25,325 25,791 25,917 26,467 27,075








$ per Capita $242


Page B-15


Town of Grimsby


Service: Library Collection Materials

Unit Measure: No. of library collection items


($/item)

Books 49,100 50,200 50,700 50,959 48,438 52,023 50,700 49,800 47,748 46,058 $31

Periodicals 100 100 100 1,400 1,400 1,400 1,400 1,493 1,765 2,003 $7

CD Audio 1,200 1,000 1,034 1,034 1,034 1,034 1,034 1,072 1,404 1,353 $91

DVD 1,000 1,000 1,000 1,200 1,500 1,800 2,100 2,505 2,807 3,414 $34

Online Database/Digital Resources 12 12 12 17 19 19 19 21 18 21 $861

Total 51,412 52,312 52,846 54,610 52,391 56,276 55,253 54,891 53,742 52,849

Population 23,937 24,032 24,472 24,744 24,938 25,325 25,791 25,917 26,467 27,075








$ per Capita $68


Page C-1


Appendix C – Long Term Capital and

Operating Cost Examination

Page C-2


Appendix C – Long Term Capital and Operating Cost Examination

Town of Grimsby Annual Capital and Operating Cost Impact

As a requirement of the D.C.A. s.10(2)(c), an examination for each service to which the

development charge by-law would relate, of the long term capital and operating costs

for capital infrastructure required for the service.” The D.C.A. s.10(2)(c.2) also requires

an asset management plan be prepared. This can be found in Appendix F.

As part of this analysis, it was deemed necessary to isolate the incremental operating

expenditures directly associated with these capital projects, factor in cost saving

attributable to economies of scale or cost sharing where applicable, and prorate the cost

on a per unit basis (i.e. sq.ft. of building space, per vehicle, etc.). This was undertaken

through a review of the Town’s approved 2014 F.I.R.

In addition to the operational impacts, over time the initial capital projects will require

replacement. This replacement of capital is often referred to as lifecycle cost. By

definition, lifecycle costs are all the costs which are incurred during the life of a physical

asset, from the time its acquisition is first considered, to the time it is taken out of

service for disposal or redeployment. The method selected for life cycle costing is the

sinking fund method which provides that money will be contributed annually and

invested, so that those funds will grow over time to equal the amount required for future

replacement. The following factors were utilized to calculate the annual replacement

cost of the capital projects (annual contribution = factor X capital asset cost) and are

based on an annual growth rate of 2% (net of inflation) over the average useful life of

the asset:

FACTOR TERM

Stormwater Channels, drainage and ponds 0.00516 80

Wastewater Sewers 0.00516 80

Water Distribution Systems 0.00516 80

Roads 0.04116 20

Facilities 0.01656 40

PW Rolling Stock 0.09133 10

Fire vehicles 0.05783 15

Small equipment and gear 0.09133 10

Municipal parking spaces 0.03122 25

Indoor and Outdoor Recreation Vehicles and Equipment 0.02465 30

Library materials 0.09133 10

Page C-3


Table C-1 depicts the annual operating impact resulting from the proposed gross capital

projects at the time they are all in place. It is important to note that, while Town

program expenditures will increase with growth in population, the costs associated with

the new infrastructure (i.e. facilities) would be delayed until the time these works are in

place.

Table C-1

TOWN OF GRIMSBY

OPERATING AND CAPITAL EXPENDITURE IMPACTS

FOR FUTURE CAPITAL EXPENDITURES

SERVICE

Gross Total Cost

(Net of BTE)

(2016 $)

ANNUAL LIFECYCLE

EXPENDITURES

ANNUAL

OPERATING

EXPENDITURES

TOTAL ANNUAL

EXPENDITURES


1.1 Channels, drainage and ponds 900,000 14,900 150,491 165,391


2.1 Sewers 709,000 11,700 864,389 876,089

3. Water Services

3.1 Distribution systems 1,282,700 21,200 768,571 789,771


4.1 Roads 16,487,500 273,000 309,098 582,098

4.2 Depots and Domes 886,000 14,700 16,610 31,310

4.3 PW Rolling Stock 681,800 11,300 12,782 24,082


5.1 Fire facilities 5,320,200 88,100 95,872 183,972

5.2 Fire vehicles 8,424,200 51,400 151,808 203,208

5.3 Small equipment and gear 198,000 3,300 3,568 6,868

6. Parking Services

6.1 Municipal parking spaces 222,300 3,700 0 3,700


7.1Parkland development, amenities & trails,

vehicles & indoor facilities8,051,100

133,300 152,403 285,703

8. Library Services

8.1 Library facilities 945,000 15,700 118,988 134,688

8.2 Library materials 260,000 4,300 32,737 37,037

9. Administration

9.1 Studies 374,865 0 0 0

Total 0 44,742,665 646,600 2,677,318 3,323,918

Page D-1


Appendix D – Development Charge Reserve

Fund Policy

Page D-2


Appendix D – Development Charge Reserve

Fund Policy

D.1 Legislative Requirements

The D.C.A. requires development charge collections (and associated interest) to be

placed in separate reserve funds. Sections 33 through 36 of the Act provide the

following regarding reserve fund establishment and use:

a municipality shall establish a reserve fund for each service to which the D.C.

by-law relates; s.7(1), however, allows services to be grouped into categories of

services for reserve fund (and credit) purposes, although only 100% eligible and

90% eligible services may be combined (minimum of two reserve funds);

the municipality shall pay each development charge it collects into a reserve fund

or funds to which the charge relates;

the money in a reserve fund shall be spent only for the "capital costs" determined

through the legislated calculation process (as per s.5(1) 2-8);

money may be borrowed from the fund but must be paid back with interest

(O.Reg. 82/98, s.11(1) defines this as Bank of Canada rate either on the day the

by-law comes into force or, if specified in the by-law, the first business day of

each quarter);

D.C. reserve funds may not be consolidated with other municipal reserve funds

for investment purposes and may only be as an interim financing source for

capital undertakings for which development charges may be spent (s.37).

Annually, the Treasurer of the municipality is required to provide Council with a financial

statement related to the D.C. by-law(s) and reserve funds. This statement must be

made available to the public and may be requested to be forwarded to the Minister of

Municipal Affairs and Housing. The D.C.A. does not prescribe how the statement is to

be made available to the public. We would recommend that a resolution of Council

make the statement available on the municipality's website or upon request.

Subsection 43(2) and O.Reg. 82/98 prescribes the information that must be included in

the Treasurer's statement, as follows:

opening balance;

closing balance;

Page D-3


description of each service and/or service category for which the reserve fund

was established (including a list of services within a service category);

transactions for the year (e.g. collections, draws) including each assets capital

costs to be funded from the D.C. reserve fund and the manner for funding the

capital costs not funded under the D.C. by-law (i.e. non-D.C. recoverable cost

share and post-period D.C. recoverable cost share);

for projects financed by development charges, the amount spent on the project

from the D.C. reserve fund and the amount and source of any other monies

spent on the project.

amounts borrowed, purpose of the borrowing and interest accrued during

previous year;

amount and source of money used by the municipality to repay municipal

obligations to the D.C. reserve fund;

list of credits by service or service category (outstanding at beginning of the year,

given in the year and outstanding at the end of the year by holder); and

for credits granted under s.14 of the old D.C.A., a schedule identifying the value

of credits recognized by the municipality, the service to which it applies and the

source of funding used to finance the credit; and

a statement as to compliance with s.s. 59(1) of the D.C.A., whereby the

municipality shall not impose, directly or indirectly, a charge related to a

development or a requirement to construct a service related to development,

except as permitted by the D.C. or another Act.

Based upon the above, Figure D-1, and Attachments 1 and 2, set out the format for

which annual reporting to Council should be provided.

D.2 D.C. Reserve Fund Application

Section 35 of the D.C.A. states that:

“The money in a reserve fund established for a service may be spent only for capital costs determined under paragraphs 2 to 8 of subsection 5(1).”

This provision clearly establishes that reserve funds collected for a specific service are

only to be used for that service, or to be used as a source of interim financing of capital

undertakings for which a development charge may be spent.

Page D-4


Figure D-1

Town of Grimsby

Annual Treasurer's Statement of Development Charge Reserve Funds

Services to which the Development Charge Relates (examples)

Non-Discounted Services Discounted Services

Description

Services Related

to a Highway and

Related

Infrastructure

Water

Services

Wastewater

Services

Stormwater

Drainage and

Control Services

Fire

Protection

Services

Indoor and

Outdoor

Recreation

Services

Parking

Services

Library

Services Administration

Opening Balance, January 1, ________

Plus:

Development Charge Collections

Accrued Interest

Repayment of Monies Borrowed from Fund and Associated Interest1

Sub-Total

Less:

Amount Transferred to Capital (or Other) Funds2

Amounts Refunded

Amounts Loaned to Other DC Service Category for Interim Financing

Credits3

Sub-Total

Closing Balance, December 31, ________1 Source of funds used to repay the DC reserve fund

2 See Attachment 1 for details

3 See Attachment 2 for details

The Municipality is compliant with s.s. 59.1 (1) of the Development Charges Act , whereby charges are not directly or indirectly imposed on development nor has a requirement to construct a service related to

development been imposed, except as permitted by the Development Charges Act or another Act.

Total

Page D-5


Attachment 1

Town of Grimsby

Amount Transferred to Capital (or Other) Funds - Capital Fund Transactions

DC Recoverable Cost Share Non-DC Recoverable Cost Share

DC Forecast Period Post DC Forecast Period

Capital Fund Transactions

Gross Capital

Cost

DC Reserve

Fund Draw

DC Debt

Financing

Grants,

Subsidies

Other

Contributions

Post-Period

Benefit/

Capacity Interim

Financing

Grants,

Subsidies

Other

Contributions

Other

Reserve/Reser

ve Fund Draws

Tax Supported

Operating Fund

Contributions

Rate Supported

Operating Fund

Contributions Debt Financing

Grants,

Subsidies

Other

Contributions

Services Related to a Highway and Related Infrastructure

Capital Cost A

Capital Cost B

Capital Cost C

Sub-Total - Services Related to Highways $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Water Services

Capital Cost D

Capita Cost E

Capital Cost F

Sub-Total - Water $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Wastewater Services

Capital Cost G

Capita Cost H

Capital Cost I

Sub-Total - Wastewater $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Amount Transferred to Operating (or Other) Funds - Operating Fund Transactions

DC Reserve Fund Draw Post DC Forecast Period Non-DC Recoverable Cost Share

Operating Fund Transactions Principal Interest Principal Interest Source Principal Interest Source

Services Related to a Highway and Related Infrastructure

Capital Cost J

Capita Cost K

Capital Cost L

Sub-Total - Services Related to Highways $0 $0 $0 $0 $0 $0 $0

Water Services

Capital Cost M

Capita Cost N

Capital Cost O

Sub-Total - Water $0 $0 $0 $0 $0 $0 $0

Wastewater Services

Capital Cost P

Capita Cost Q

Capital Cost R

Sub-Total - Wastewater $0 $0 $0 $0 $0 $0 $0

Annual Debt

Repayment

Amount

Page D-6


Attachment 2

Town of Grimsby

Statement of Credit Holder Transactions

Credit Holder

Applicable DC

Reserve Fund

Credit Balance

Outstanding

Beginning of

Year ________

Additional

Credits

Granted During

Year

Credits Used by

Holder During

Year

Credit Balance

Outstanding

End of Year

________

Credit Holder A

Credit Holder B

Credit Holder C

Credit Holder D

Credit Holder E

Credit Holder F

Page E-1


Appendix E – Local Service Policy

Page E-2


Appendix E – Local Service Policy

Town of Grimsby

General Policy Guidelines on Development Charge and Local Service

Funding for Road-related and Stormwater Management

A. Services Related to a Highway

A highway and services related to a highway are intended for the transportation of

people and goods via many different modes including, but not limited to, passenger

automobiles, commercial vehicles, transit vehicles, bicycles and pedestrians. The

highway shall consist of all land and associated infrastructure built to support (or

service) this movement of people and goods regardless of the mode of transportation

employed, thereby achieving a serviced street.

A serviced street is the concept whereby a highway is planned, designed, operated and

maintained to enable pedestrians, cyclists, public transit users and motorists to safely

and comfortably be moved, thereby allowing for the efficient movement of persons and

goods.

The associated infrastructure to achieve this concept shall include, but is not limited to:

road pavement structure and curbs; grade separation/bridge structures (for any

vehicles, railways and/or pedestrians); grading, drainage and retaining wall features;

culvert structures; storm water drainage systems; traffic control systems; active

transportation facilities (e.g. sidewalks, bike lanes, multi-use trails, etc.); transit lanes;

stops and amenities; roadway illumination systems; boulevard and median surfaces

(e.g. sod & topsoil, paving, etc.); street trees and landscaping; parking lanes & laybys

and driveway entrances; noise attenuation systems; railings, safety barriers and utilities

which includes burial of existing overhead and underground systems.

1) Local, Collector, and Arterial Town Roads or Other Provincial/Regional Roads

(including land)

a. Internal to development, inclusive of all land and associated infrastructure:

direct developer responsibility under s. 59 of the Development Charges

Act, 1997 (D.C.A.), as amended, as the local service component.

Page E-3


b. External to but abutting to the development shall become a serviced street

to the Town’s requirements. The cost of the full serviced street and

infrastructure shall be 50% of the adjacent Developer’s direct

responsibility with the remaining 50% funded in the D.C.

c. External to but not abutting the Development that are required to become

a serviced street shall be funded in the D.C.

2) Traffic Control Systems, Signals and Intersection Improvements

a. On new roads and road improvements unrelated to a specific

development: included as part of road costing funded through D.C.s.

b. On new roads external to but abutting the development: 50% of the

adjacent developer’s direct responsibility with the remaining 50% included

as part of road costing funded through D.C.s.

c. For any private site entrances or entrances to specific development:

direct developer responsibility under s.59 of D.C.A. (as a local service).

d. On road intersections with Regional roads: include in Region D.C.s or in

certain circumstances, may be a direct developer responsibility.

e. Intersection improvements, new or modified signalization, signal timing

and optimization plans, area traffic studies for highways attributed to

growth and unrelated to a specific development: included in D.C.

calculation as permitted under s.5(1) of the D.C.A.

3) Streetlights

a. Streetlights on new roads and road improvements: considered part of the

complete street and included as part of the road costing funded through

D.C.s or in exceptional circumstances, may be direct developer

responsibility through local service provisions (s.59 of D.C.A.).

b. Streetlights on roads internal to development: considered part of the

complete street and included as a direct developer responsibility under

s.59 of the D.C.A. (as a local service).

Page E-4


c. Streetlights on new roads external to but abutting the development: 50%

of the adjacent developer’s direct responsibility with the remaining 50%

included as part of road costing funded through D.C.s.

d. Streetlights on roads external to development, needed to support a

specific development or required to link with the area to which the plan

relates: considered part of the complete street and included as a direct

developer responsibility under s.59 of the D.C.A. (as a local service).

4) Transportation Related Pedestrian and Cycling Facilities

a. Sidewalks, multi-use trails, cycle tracks, and bike lanes, inclusive of all

required infrastructure, located within roads, Regional roads and provincial

highway corridors: considered part of the complete street and included in

D.C.s, or, in exceptional circumstances, may be direct developer

responsibility through local service provisions (s.59 of the D.C.A.).

b. Sidewalks, multi-use trails, cycle tracks, and bike lanes, inclusive of all

required infrastructure, located within or linking to road corridors internal to

development: considered part of the complete street and is a direct

developer responsibility under s.59 of the D.C.A. (as a local service).

c. Other sidewalks, multi-use trails, cycle tracks, and bike lanes, inclusive of

all required infrastructure, located within road corridors external to

development and needed to support a specific development or required to

link with the area to which the plan relates: direct developer responsibility

under s.59 of the D.C.A. (as a local service).

d. Multi-use trails (not associated with a road), inclusive of all land and

required infrastructure, that go beyond the function of a (parkland)

recreational trail and form part of the Town’s active transportation network

for cycling and/or walking: included in D.C.s.

5) Noise Abatement Measures

a. External and internal to development where it is related to, or a

requirement of a specific development: direct developer responsibility

under s.59 of the D.C.A. (as a local service).

Page E-5


b. On road improvements abutting an existing community and unrelated to a

specific development: included as part of road costing funded through

D.C.s.

6) Transit Nodes, Terminals, and Bus Stop Infrastructure

a. Transit node and bus stop infrastructure and amenities located within town

and regional corridors, and including transit stations or terminals located

on lands to serve these road corridors: considered part of the serviced

street and included in area municipal D.C.

b. Transit node and bus stop infrastructure and amenities located within road

corridors internal to development: considered part of the complete street

and direct developer responsibility under s.59 of the D.C.A. (as a local

service).

c. Transit node and bus stop infrastructure and amenities located within road

corridors external to the development and needed to support a specific

development or required to link with the area to which the plan relates:

direct developer responsibility under s.59 of the D.C.A. (as a local

service).

B. Parkland Development Service Policy

1) Parkland

a. Parkland development for community, neighbourhood and sub-

neighbourhood parks: direct developer responsibility to provide at

base condition, as defined/approved by the Town’s Engineering and

Parks Departments, as a local service provision, i.e. grading,

sodding/seeding (over .81 ha), fencing, etc.

b. Program facilities, amenities and furniture within parkland: included

in D.C.s.

2) Recreational Trails

a. Recreational trails (multi-use trails) that do not form part of the Town’s

active transportation network, and their associated infrastructure

Page E-6


(landscaping, bridges, trail surfaces, etc.): direct developer responsibility

as a local service.

3) Landscape Buffer Blocks, Features, Cul-de-sac Islands, Berms, Grade Transition

Areas, Walkways Connections to Adjacent Arterial Roads, Open Space,

Parkland, etc.

a. The cost of developing all landscape buffer blocks, landscape features,

cul-de-sac islands, berms, grade transition areas, walkways connections

to adjacent arterial roads, open space and other remnant pieces of land

conveyed to the Town shall be a direct developer responsibility as a local

service. Such costs include but are not limited to:

i. Pre-grading, sodding or seeding, supply and installation of

amended soil (to the Town’s required depth), landscaping features,

perimeter fencing and all planting; and

ii. Perimeter fencing to the Town standard located on the public

property side of the property line adjacent land uses (such as but

not limited to arterial roads) as directed by the Town.

4) Natural Heritage System (N.H.S.)

a. N.H.S. includes engineered and situ stream corridors, natural buffers for

woodlots, wetlands remnants, etc., as well as sub-watersheds within the

boundaries of the Town. Direct developer responsibility as a local service

provision including but not limited to the following:

i. Riparian planting and landscaping requirements (as required by the

Town, Conservation Authority or other authorities having

jurisdiction) as a result of the creation of, or construction of within

the N.H.S. and associated buffers.

5) Infrastructure Assets Constructed by Developers

a. Any parks and open space infrastructure assets to be built by the

developer on behalf of the Town require design/construction approval of

the Town of Grimsby’s Public Works and Recreation, Facilities and

Culture Departments.

Page F-1


Appendix F – Asset Management Plan

Page F-2


Appendix F – Asset Management Plan

The recent changes to the D.C.A. (new section 10(2)(c.2)) require that the Background

Study must include an asset management plan related to new infrastructure. Section

10 (3) of the D.C.A. provides:

The asset management plan shall,

(a) deal with all assets whose capital costs are proposed to be funded under

the development charge by-law;

(b) demonstrate that all the assets mentioned in clause (a) are financially

sustainable over their full life cycle;

(c) contain any other information that is prescribed; and

(d) be prepared in the prescribed manner.

In regard to the above, section 8 of the Regulations was amended to include

subsections (2), (3) and (4) which set out for specific detailed requirements for transit

(only). For all services except transit, there are no prescribed requirements at this time

thus requiring the municipality to define the approach to include within the Background

Study.

At a broad level, the Asset Management Plan provides for the long term investment in

an asset over its entire useful life along with the funding. The schematic below

identifies the costs for an asset through its entire lifecycle. For growth related works,

the majority of capital costs will be funded by the D.C. Non-growth related expenditures

will then be funded from non-D.C. revenues as noted below. During the useful life of

the asset, there will be minor maintenance costs to extend the life of the asset along

with additional program related expenditures to provide the full services to the residents.

At the end of the life of the asset, it will be replaced by non-D.C. financing sources.

Page F-3


In 2012, the Province developed Building Together: Guide for municipal asset

management plans which outlines the key elements for an asset management plan

(A.M.P.), as follows:

State of local infrastructure: asset types, quantities, age, condition, financial

accounting valuation and replacement cost valuation.

Desired levels of service: defines levels of service through performance measures

and discusses any external trends or issues that may affect expected levels of service

or the municipality’s ability to meet them (for example, new accessibility standards,

climate change impacts).

Asset management strategy: the asset management strategy is the set of planned

actions that will seek to generate the desired levels of service in a sustainable way,

while managing risk, at the lowest lifecycle cost.

Financing strategy: having a financial plan is critical for putting an A.M.P. into action.

By having a strong financial plan, municipalities can also demonstrate that they have

made a concerted effort to integrate the A.M.P. with financial planning and municipal

budgeting, and are making full use of all available infrastructure financing tools.

Commensurate with the above, the Town prepared an Asset Management Plan in 2014

for its existing assets, however, the plan does not include all assets categories that are

Page F-4


included in the capital forecast needs of the D.C. background study and for the services

included, the plan only addresses non-growth costs of capital (i.e. does not include

expansionary capital). As a result, the asset management requirement for the D.C.

must be undertaken in the absence of this information.

In recognition to the schematic above, the following table (presented in 2016 $) has

been developed to provide the annualized expenditures and revenues associated with

new growth. Note that the D.C.A. does not require an analysis of the non-D.C. capital

needs or their associated operating costs so these are omitted from the table below. As

well, as all existing assets for the categories of assets included in the D.C. eligible

capital costs are not included in the Town’s Asset Management Plan (i.e. facilities,

vehicles and parks and recreation assets not included), the present infrastructure gap

and associated funding plan have not been considered at this time. Hence the following

does not represent a fiscal impact assessment (including future tax/rate increases) but

provides insight into the potential affordability of the new assets:

1. The non-D.C. recoverable portion of the projects which will require financing from

Town financial resources (i.e. taxation, rates, fees, etc.). This amount has been

presented on an annual debt charge amount based on 10-year financing.

2. Lifecycle costs for the 2016 D.C. capital works have been presented based on a

sinking fund basis. The assets have been considered over their estimated useful

lives.

3. Incremental operating costs for the D.C. services (only) have been included.

4. The resultant total annualized expenditures are $4.56 million.

5. Consideration was given to the potential new taxation and user fee revenues

which will be generated as a result of new growth. These revenues will be

available to finance the expenditures above. The new operating revenues are

$2.4 million. This amount, totalled with the existing operating revenues of $28.5

million, provide annual revenues of $30.9 million by the end of the period.

6. In consideration of the above, the capital plan is deemed to be financially

sustainable.

Page F-5


Sub-Total 2031 (Total)

Expenditures (Annualized)

Annual Debt Payment on Non-Growth

Related Capital1 $25,416

Lifecycle:

Annual Lifecycle - DC Services $646,464

Sub-Total - Annual Lifecycle $646,464 $646,464

Incremental Operating Costs (for D.C.

Services) $2,758,080

Total Expenditures $3,429,961

Revenue2 (Annualized)

Total Existing Revenue $28,467,020

Incremental Tax and Non-Tax Revenue

(User Fees, Fines, Licences, etc.) $2,445,084

Total Revenues $30,912,103

2 As per Sch. 10 of FIR

Town of Grimsby

Asset Management - Future Expenditures and Associated Revenues

2016 $

1 Non-Growth Related component of Projects including 10% mandatory

deduction on soft services

Page G-1


Appendix G – Proposed Development

Charge By-law

Page G-2


The Corporation of the TOWN OF GRIMSBY

By-Law Number ___ -2016

A BY-LAW TO ESTABLISH DEVELOPMENT CHARGES

FOR THE TOWN OF GRIMSBY

Whereas the Development Charges Act, 1997 (the “Act”) provides that the council of a

municipality may by by-law impose development charges against land to pay for

increased capital costs required because of increased needs for services;

And whereas a development charge background study has been completed in

accordance with the Act;

And whereas Council has before it a report entitled “Town of Grimsby Development

Charge Background Study” prepared by Watson & Associates Economists Ltd. dated

September 1, 2016;

And whereas the Council of the Corporation of the Town of Grimsby has given notice

of and held a public meeting on the 17th day of October, 2016 in accordance with the

Act and the regulations thereto;

Now therefore the Council of the Corporation of the Town of Grimsby hereby enacts as

follows:

1.0 Definitions

In this by-law, “Act” means the Development Charges Act, 1997, as amended, or any

successor thereto;

“Accessory use” means where used to describe a use, building or structure, that the

use, building or structure is naturally and normally incidental, subordinate in purpose of

floor area or both, and exclusively devoted to a principal use, building or structure;

“Apartment unit” means any residential dwelling unit within a building containing three

or more dwelling units where access to each residential unit is obtained through a

common entrance or entrances from the street level and the residential units are

connected by an interior corridor;

“Bedroom” means a habitable room larger than seven square metres, including a den,

study or other similar area, but does not include a living room, dining room or kitchen;

Page G-3


“Benefiting area” means an area defined by a map, plan or legal description in a front-

ending agreement as an area that will receive a benefit from the construction of a

service;

“Board of education” has the same meaning as that specified in the Education Act or

any successor thereto;

“Building Code Act” means the Building Code Act, 1992, as amended; or any

successor thereto;

“Capital cost” means costs incurred or proposed to be incurred by the municipality or a

local board thereof directly or by others on behalf of and as authorized by the

municipality or local board,

i) to acquire land or an interest in land, including a leasehold interest,

ii) to improve land,

iii) to acquire, lease, construct or improve buildings and structures,

iv) to acquire, construct or improve facilities including:

a. furniture and equipment other than computer equipment, and

b. materials acquired for circulation, reference or information purposes by a

library board as defined in the Public Libraries Act, and

c. rolling stock with an estimated useful life of seven years or more, and

v) to undertake studies in connection with any matter under the Act and any of the

matters in clauses (i) to (iv), including the development charge background study

required for the provision of services designated in this by-law within or outside

the municipality, including interest on borrowing for those expenditures under

clauses (i), (ii), (iii) and (iv) that are growth-related;

“Commercial” means any non-residential development not defined under “institutional”

or “industrial”

“Council” means the Council of the municipality;

“Development” means the construction, erection or placing of one or more buildings or

structures on land or the making of an addition or alteration to a building or structure

that has the effect of increasing the size or usability thereof, and includes

redevelopment;

“Development charge” means a charge imposed with respect to this by-law;

Page G-4


“Dwelling unit” means any part of a building or structure used, designed or intended to

be used as a domestic establishment in which one or more persons may sleep and are

provided with culinary and sanitary facilities for their exclusive use;

“Existing industrial building” means a building or buildings existing on site in the

Town of Grimsby on the day this by-law comes into effect or the first building

constructed and occupied on a vacant site pursuant to site plan approval under Section

41 of the Planning Act, R.S.O. c.P.13 of the Planning Act subsequent to this by-law

coming to effect for which fill development charges were paid, and is being used for or

in conjunction with,

i) the production, compounding, processing, packaging, crating, bottling, packing or

assembling of raw or semi-processed goods or materials in not less than

seventy-five percent of the total gross floor area of the building or buildings on a

site (“manufacturing”) or warehousing related to the manufacturing use carried on

in the building or buildings;

ii) research or development in connection with manufacturing in not less than

seventy-five percent of the total gross floor area of the building or buildings on a

site;

iii) retail sales by a manufacturer, if the retail sales are at the site where the

manufacturing is carried out, such retail sales are restricted to goods

manufactured at the site, and the building or part of a building where such retail

sales are carried out does not constitute greater than twenty-five percent of the

total gross floor area of the building or buildings on the site; or

iv) Office or administrative purposes, if they are,

a. carried out with respect to manufacturing or warehousing; and

b. In or attached to the building or structure used for such manufacturing or

warehousing;

“Farm building” means that part of a bona fide farming operation encompassing

barns, silos and other ancillary development to an agricultural use, but excluding a

residential use and would include wholesale greenhouse facilities and structures;

“Grade” means the average level of finished ground adjoining a building or structure at

all exterior walls;

“Gross floor area” means the total area of all floors above grade of a dwelling unit

measured between the outside surfaces of exterior walls or between the outside

Page G-5


surfaces of exterior walls and the centre line of party walls dividing the dwelling unit

from other dwelling unit or other portion of a building;

In the case of a non-residential building or structure, or in the case of a mixed-use

building or structure in respect of the non-residential portion thereof, the total area of all

building floors above or below grade measured between the outside surfaces of the

exterior walls, or between the outside surfaces of exterior walls and the centre line of

party walls dividing a non-residential use and a residential use, except for:

a room or enclosed area within the building or structure above or below grade

that is used exclusively for the accommodation of heating, cooling, ventilating,

electrical, mechanical or telecommunications equipment that service the building;

loading facilities above or below grade; and

a part of the building or structure below grade that is used for the parking of

motor vehicles or for storage or other accessory use;

“Industrial” means lands, buildings or structures used or designed or intended for use

for manufacturing, processing, fabricating or assembly of raw goods, transportation and

warehousing or bulk storage of goods, wineries and distilleries, utilities (electric and

gas), construction, and includes office uses and the sale of commodities to the general

public where such uses are accessory to an industrial use, but does not include the sale

of commodities to the general public through a warehouse club;

“Institutional” means lands, buildings or structures used or designed or intended for

use by an organized body, society or religious group for promoting a public or non-profit

purpose and shall include, but without limiting the generality of the foregoing, places of

worship, and special care facilities;

“Local board” has the same definition as defined in the Development Charges Act;

“Local services” means those services, facilities or things which are under the

jurisdiction of the municipality and are related to a plan of subdivision or within the area

to which the plan relates in respect of the lands under Sections 41, 51 or 53 of the

Planning Act as amended or any successor thereto;

“Mobile home” means any dwelling that is designed to be made mobile, and

constructed or manufactured to provide a permanent residence for one or more

persons, but does not include a travel trailer or tent trailer;

Page G-6


“Multiple dwellings” means all dwellings other than single-detached, semi-detached

and apartment house dwellings;

“Municipality” means The Corporation of the Town of Grimsby;

“Non-industrial” means all buildings or structures not defined as industrial;

“Non-residential use” means a building or structure of any kind whatsoever used,

designed or intended to be used for other than a residential use and includes all

commercial, industrial and institutional uses;

“Owner” means the owner of land or a person who has made application for an

approval for the development of land upon which a development charge is imposed;

“Place of worship” means that part of a building or structure that is exempt from

taxation as a place of worship under the Assessment Act, as amended or any

successor thereto;

“Regulation” means any regulation made pursuant to the Act;

“Residential use” means land or buildings or structures of any kind whatsoever used,

designed or intended to be used as living accommodations for one or more individuals;

“Semi-detached dwelling” means a dwelling unit in a residential building consisting of

two dwelling units having one vertical wall or one horizontal walls, but no other parts,

attached or another dwelling unit where the residential units are not connected by an

interior corridor;

“Services” (or “service”) means those services designated in Schedule “A” to this by-

law;

“Servicing agreement” means an agreement between a landowner and the

municipality relative to the provision of municipal services to specified lands within the

municipality;

“Single detached dwelling unit” means a residential building consisting of one

dwelling unit and not attached to another structure and includes mobile homes.

2.0 Designation of Services

2.1 The categories of services for which development charges are imposed under

this by-law are as follows:

Page G-7


a) Services Related to a Highway;

b) Other Transportation Services;

c) Fire Protection Services;

d) Administration Services;

e) Outdoor Recreation Services;

f) Indoor Recreation Services and Outdoor Recreation Services;

g) Library Services;

h) Water Services (Urban Area);

i) Wastewater Services (Urban Area); and

j) Storm Water Drainage and Control Services (Urban Area)

2.2 The components of the services designated in subsection 2.1 are described in

Schedule A.

3.0 Application of By-law Rules

3.1 Development charges shall be payable in the amounts set out in this by-law

where:

a) The lands are located in the area described in subsection 3.2; and

b) The development of the lands requires any of the approvals set out in subsection

3.4(a).

Area to Which By-law Applies

3.2 Subject to subsection 3.3, this by-law applies to all lands in the geographic area

of the Town of Grimsby.

3.3 This by-law shall not apply to lands that are owned by and used for the purposes

of:

a) The Town of Grimsby or a local board thereof;

b) A board as defined in section 1(1) of the Education Act;

c) The Region of Niagara or a local board thereof.

Approvals for Development

3.4 a) Development charges shall be imposed on all lands, buildings or structures that

are developed for residential or non-residential uses if the development requires,

Page G-8


i) The passing of a zoning by-law or of an amendment to a zoning by-law

under section 34 of the Planning Act;

ii) The approval of a minor variance under section 45 of the Planning Act;

iii) A conveyance of land to which a by-law passed under subsection 50(7) of

the Planning Act applies;

iv) The approval of a plan of subdivision under section 51 of the Planning Act;

v) A consent under section 53 of the Planning Act;

vi) The approval of a description under section 50 of the Condominium Act; or

vii) The issuing of a permit under the Building Code Act, 1992 in relation to a

building or structure.

b) No more than one development charge for each service designated in subsection

2.1 shall be imposed upon any lands, buildings or structures to which this by-law

applies even though two or more of the actions described in subsection 3.4(a)

are required before the lands, buildings or structures can be developed.

c) Despite subsection 3.4(b), if two or more of the actions described in subsection

3.4(a) occur at different times, additional development charges shall be imposed

if the subsequent action has the effect of increasing the need for services.

Exemptions

3.5.1 Notwithstanding the provisions of this by-law, development charges shall not be

imposed with respect to:

a) Development creating or adding an accessory use or accessory structure not

exceeding 10 square metres of gross floor area;

b) An enlargement of the gross floor area of an existing industrial building in

accordance with Section 4 of the Act;

c) The issuance of a building permit in accordance with Section 2(3) of the Act;

d) bona fide farm (non-residential) buildings including wholesale greenhouse

facilities and structures.

3.6 Rules with Respect to an Industrial Expansion Exemption

3.6.1 If a development includes the enlargement of the gross floor area of an existing

industrial building, the amount of the development charge that is payable in respect of

the enlargement is determined in accordance with the following:

Page G-9


i) Subject to subsection 3.6.1(iii), if the gross floor area is enlarged by 50 per cent

or less of the lesser of:

a. the gross floor area of the existing industrial building, or

b. the gross floor area of the existing industrial building before the first

enlargement for which:

i. an exemption from the payment of development charges was

granted, or

ii. a lesser development charge than would otherwise be payable

under this by-law, or predecessor thereof, was paid, pursuant to

Section 4 of the Act and this subsection, the amount of the

development charge in respect of the enlargement is zero;

ii) Subject to subsection 3.6.1(iii), if the gross floor area is enlarged by more than 50

per cent or less of the lesser of:

a. the gross floor area of the existing industrial building, or

b. the gross floor area of the existing industrial building before the first

enlargement for which:

i. an exemption from the payment of development charges was

granted, or

ii. a lesser development charge than would otherwise be payable

under this by-law, or predecessor thereof, was paid,

pursuant to Section 4 of the Act and this subsection,

the amount of the development charge in respect of the enlargement is the

amount of the development charge that would otherwise be payable multiplied by

the fraction determined as follows:

a. determine the amount by which the enlargement exceeds 50 per cent of

the gross floor area before the first enlargement, and

b. divide the amount determined under subsection (A) by the amount of the

enlargement

iii) For the purposes of calculating the extent to which the gross floor area of an

existing industrial building is enlarged in subsection 3.6.1(ii), the cumulative

gross floor area of any previous enlargements for which:

a. an exemption from the payment of development charges was granted, or

b. a lesser development charge than would otherwise be payable under this

by-law, or predecessor thereof, was paid,

pursuant to Section 4 of the Act and this subsection, shall be added to the

calculation of the gross floor area of the proposed enlargement.

Page G-10


For the purposes of this subsection, the enlargement must not be attached to the

existing industrial building by means only of a tunnel, bridge, passageway,

canopy, shared below grade connection, such as a service tunnel, foundation,

footing or parking facility.

Residential

3.8 The development charges described in Schedule B to this by-law shall be

imposed on residential uses of lands, buildings or structures, including a dwelling unit

accessory to a non-residential use and, in the case of a mixed use building or structure,

on the residential uses in the mixed use building or structure, according to the type of

unit, and calculated with respect to each of the services according to the type of

residential use.

Non-Residential Uses

3.9 The development charges described in Schedule B to this by-law shall be

imposed on non-residential uses of lands, buildings or structures, and, in the case of a

mixed use building or structure, on the non-residential uses in the mixed use building or

structure, and calculated with respect to each of the services according to the gross

floor area of the non-residential use.

Reduction of Development Charges with Respect to Redevelopment

3.10 Despite any other provision of this by-law, where, as a result of the

redevelopment of land, a building or structure existing on the same land within 48

months prior to the date of payment of development charges in regard to such

redevelopment was, or is to be demolished, in whole or in part, or converted from one

principal use to another principal use on the same land, in order to facilitate the

redevelopment, the development charges otherwise payable with respect to such

redevelopment shall be reduced by the following amounts:

a) in the case of a residential building or structure, or in the case of a mixed-use

building or structure, the residential uses in the mixed-use building or structure,

an amount calculated by multiplying the applicable development charge under

subsections 3.6 and 3.7 and of this by-law by the number, according to type, of

dwelling units that have been or will be demolished or converted to another

principal use; and provided that such amounts shall not exceed, in total, the

amount of the development charges otherwise payable with respect to the

redevelopment.

Page G-11


Time of Payment of Development Charges

3.11 Development charges imposed under this section are payable upon issuance of

a building permit with respect to each dwelling unit, building or structure.

3.12 Notwithstanding Section 3.11, provided that a site plan has been registered for

the Development and the Town Manager (or his/her designate) has recommended in

writing or email that the development charges be deferred, the Mayor (or in his/her

absence Deputy Mayor) and the Treasurer (or in his/her absence Deputy Treasurer) are

authorized to jointly sign on behalf of the Town an agreement between the Town and

the Owner to defer the Development Charges, in whole or in part, for that Development

for up to six months, after which the charges shall become due immediately. Copies of

all such agreements shall be forwarded to Council for their information. By entering into

such an agreement the Owner is explicitly agreeing that any Development Charges that

remain unpaid two weeks following the expiration of the deferment may be added, at the

sole discretion of the Town, to the tax roll(s) related to the Development, in a manner

deemed appropriate by the Town, and collected in the same manner as taxes.

4.0 Payment by Services

4.1 Despite the payments required under subsection 3.11, Council may, by

agreement, give a credit towards a development charge in exchange for work that

relates to a service for which a development charge is imposed under this by-law.

5.0 Indexing

5.1 Development charges imposed pursuant to this by-law shall be adjusted

annually, without amendment to this by-law, commencing on the first anniversary date

of this by-law and each anniversary date thereafter, in accordance with the Act.

6.0 Schedules

6.1 The following schedules to this by-law form an integral part thereof:

Schedule A - Components of Services Designated in subsection 2.1

Schedule B - Residential and Non-Residential Development Charges

Schedule C - Map denoting where Development Charges are imposed

7.0 Date By-law in Force

Page G-12


7.1 This by-law shall come into force on the 8th day of November, 2016.

8.0 Date By-law Expires

8.1 This by-law will expire on the 8th day of November, 2021, unless it is repealed at

an earlier date.

9.0 Repeal

9.1 By-law No. 14-84, as amended is hereby repealed upon passage of this by-law.

Read a first time this 7th day of November, 2016.

Read a second and third time and finally passed this 7th day of November, 2016.

R.N. Bentley, Mayor

Derik Brandt, Town Manager

Page G-13


Schedule A to By-law 16-__ Designated Town Services under This By-law

Town-wide Services


a. Roads, Sidewalks, Streetlights

b. Depots and Domes

c. Rolling Stock

2. Parking Services

a. Parking


a. Fire Stations

b. Fire Vehicles

c. Small Equipment and Gear

4. Administration

a. Studies


a. Parkland Development, Amenities and Trails

b. Parks Vehicles and Equipment

c. Recreation Facilities

6. Library Services

a. Library Facilities

b. Library Materials

Urban Services


a. Sewers

8. Water Services

a. Distribution

9. Storm Water Drainage and Control Services

a. Channels, Drainage and Ponds

Page G-14


SCHEDULE "B"

BY-LAW NO. 2016 - _____

SCHEDULE OF DEVELOPMENT CHARGES

Single and Semi-

Detached Dwelling

Apartments - 2

Bedrooms +

Apartments -

Bachelor and 1

Bedroom

Other Multiples

Industrial

(per ft² of Gross

Floor Area)

Non-Industrial

(per ft² of Gross Floor

Area)

Municipal Wide Services:

Services Related to a Highway and Related Infrastructure 9,358 5,568 3,702 6,308 2.46 5.49

Parking Services 37 22 15 25 0.01 0.02

Fire Protection Services 782 465 309 527 0.20 0.46

Indoor and Outdoor Recreation Services 4,831 2,874 1,911 3,256 0.28 0.63

Library Services 771 459 305 520 0.04 0.10

Administration 197 117 78 133 0.05 0.12

Total Municipal Wide Services 15,976 9,505 6,320 10,769 3.04 6.82

Urban Services

Stormwater Drainage and Control Services 320 190 127 216 0.16 0.36

Wastewater Services - - - - 0.00 0.00

Water Services 563 335 223 379 0.12 0.26

Total Urban Services 883 525 350 595 0.28 0.62

GRAND TOTAL RURAL AREA 15,976 9,505 6,320 10,769 3.04 6.82

GRAND TOTAL URBAN AREA 16,859 10,030 6,670 11,364 3.32 7.44

RESIDENTIAL

Service

NON-RESIDENTIAL

Page G-15


Schedule C to By-law ____ Urban Serviced Lands for Which Full Development Charges Apply

Town of Grimsby Development Charge Background Study · 2018. 11. 5. · Watson & Associates...

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