DEVELOPMENT CHARGES BACKGROUND STUDY

DEVELOPMENT CHARGES BACKGROUND STUDY

Version for Public Consultation

HEMSON C o n s u l t i n g L t d.

March 29, 2019

Table of Contents

Executive Summary ...................................................................................... 1 I Introduction ........................................................................................... 4 II The Methodology Uses A City-Wide and Area-Specific Approach to

Align Development-Related Costs and Benefits ................................ 6 A. City-Wide Development Charges Are Proposed............................. 6 B. Area-Specific Development Charges Are Proposed ....................... 7 C. Key Steps When Determining Development Charges For Future

Development-Related Projects ....................................................... 7 III Development Forecast ....................................................................... 12 IV Historical Capital Service Levels ....................................................... 15 V Development-Related Capital Forecast............................................. 17

A. Development-Related Capital Forecast Is Provided For Council's Approval........................................................................................ 17

B. The Development-Related Capital Forecast for General Services 17 C. The Development-Related Capital Forecast For Engineered

Services ........................................................................................ 21 VI Development Charges Are Calculated In Accordance With The

Development Charges Act ................................................................. 23 A. Development Charges Calculation ............................................... 23 B. Comparison of 2019 Newly Calculated Development Charges With

Charges Currently in Force in Niagara Falls ................................. 27 VII Cost of Growth Analysis .................................................................... 35

A. Asset Management Plan............................................................... 35 B. Long-Term Capital and Operating Impact Analysis of Tax

Supported Assets ......................................................................... 36 VIII Development Charges Administration and Considerations............ 40

A. Development Charges Administration........................................... 40 B. City-Wide vs. Area Specific Development Charges ...................... 40

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Appendices

Appendix A: Development Forecast.......................................................... 43 Appendix B: General Services Technical Appendix ................................ 56 Appendix B.1: Library ................................................................................. 62 Appendix B.2: Fire ...................................................................................... 72 Appendix B.3: Parks and Recreation ........................................................ 83 Appendix B.4: Public Works & Fleet ......................................................... 94 Appendix B.5:Transit Services ................................................................ 105 Appendix B.6: General Government........................................................ 113 Appendix C: Engineering Infrastructure Technical Appendix .............. 119 Appendix C.1:Roads and Related ............................................................ 121 Appendix C.2:Sidewalks........................................................................... 133 Appendix C.3: Water ................................................................................. 143 Appendix C.4: Sanitary Sewer ................................................................. 153 Appendix C.5: Storm Water Management ............................................... 163 Appendix D: Reserve Fund Balances...................................................... 173 Appendix E: Cost of Growth Analysis..................................................... 176 Appendix F: Proposed Draft 2019 DC By-law (Available Under Separate Cover)......................................................................................................... 186

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Executive Summary

A. Purpose of 2018 Development Charges (DC) Background Study

1. Legislative Context

The City of Niagara Falls 2019 Development Charges (DC) Background Study is presented as part of the process to lead to the approval of a new DC by-law in compliance with the Development Charges Act, 1997 (DCA). The study is prepared in accordance with the DCA and associated Regulations, including the amendments that came into force on January 1, 2016.

2. Key Steps in Determining Future Development-Related Projects

In accordance with the DCA and associated regulation, several key steps are required to calculate development charges. This includes preparing a development forecast, establishing historical service levels, determining the increase in need for services arising from development and appropriate shares of costs, attribution to development types (i.e. residential and nonresidential) and the final adjustment to the calculated rate of a cash flow analysis.

3. DC Eligible and In-Eligible Costs

Development charges are intended to be pay for the initial round of capital costs needed to service new development over an identified planning period. This is based on the overlaying principle that "growth pays for growth". However, the DCA and associated regulation includes several statutory adjustments and deductions that prevent these costs from fully being recovered by growth. Such adjustments include, but are not limited to: ineligible costs, including operating and maintenance costs; ineligible services, including, tourism facilities, parkland acquisition, etc.; statutory ten per cent discount for "soft" or general services; deductions for costs that exceed historical service level caps; and statutory exemptions for specific uses (i.e. industrial expansions).

4. The Development-Related Capital Forecast is Subject to Change

It is recommended that Council adopt the development-related capital forecast developed for the purposes of the 2019 DC Background Study. However, it is recognized that the DC Study is a point-in-time analysis and there may be changes to project timing, scope and costs through the City's normal annual budget process.

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B. Development Forecast

1. Residential and Non-Residential

The table below provides a summary of the anticipated residential and nonresidential growth over the 2019-2028 planning period. The development forecast is further discussed in Appendix A.

Residential Forecast

2018 Estimate

DC Study Planning Horizon 2019 - 2028

Growth

Total at 2028

Residential

Total Occupied Dwellings

Total Population Census Population In New Dwellings

Non-Residential

Employment Core Tourist Area Outside Core Tourist Area

Non-Residential Building Space (sq.m.) Core Tourist Area Outside Core Tourist Area

37,105 90,696

6,316

13,765 17,479

43,421 104,461

41,457

5,602 2,978 2,501

383,530 208,460 175,070

47,059

C. Calculated Development Charges

The table below provides a summary of the City-wide and area-specific development charges for residential and non-residential development based on the aforementioned forecasts.

Service

Residential Charge by Unit Type

Singles & Semis

Rows & Other Multiples

Apartments

Non-Residential Charge per M2

Outside Core Tourist Area

Core Tourist Area

Municipal-wide Services (1) Urban Area Services (2) Total Charge

$7,473 $5,317 $12,790

$4,687 $3,335 $8,022

$3,553 $2,528 $6,081

$19.84 $23.31 $43.15

$19.84 $6.57

$26.41

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