THE REGIONAL MUNICIPALITY OF PEEL GROWTH MANAGEMENT COMMITTEE

Transcription

1 THE REGIONAL MUNICIPALITY OF PEEL GROWTH MANAGEMENT COMMITTEE AGENDA GMC - 2/2016 DATE: Thursday, May 19, 2016 TIME: LOCATION: 9:00 AM 10:30 AM Regional Council Chamber, 5th Floor Regional Administrative Headquarters 10 Peel Centre Drive, Suite A Brampton, Ontario MEMBERS: B. Crombie; F. Dale; J. Downey; N. Iannicca; L. Jeffrey; E. Moore; B. Shaughnessy; A. Thompson; J. Tovey Chaired by Councillor J. Tovey or Vice-Chair Councillor A. Thompson 1. DECLARATIONS OF CONFLICTS OF INTEREST 2. APPROVAL OF AGENDA 3. DELEGATIONS 4. REPORTS 4.1. Update on Growth Management Strategy (For information) Presentation by Gayle Bursey, Director, Growth Management Strategy 4.2. Inputs for the Next Development Charges By-law Update (For information) 5. COMMUNICATIONS 5.1. Carmela Radice, Legislative Coordinator, City of Mississauga, dated March 30, 2016, Providing a Copy of the City of Mississauga Resolution in Response to the Region of Peel Report titled, "New Approach to Planning, Servicing and Financing Growth in the Region of Peel" (Receipt recommended) (See also Items 5.2 and 5.3) 5.2. Barbara Karrandjas, Coordinator, Legislative Services, Town of Caledon, dated May 12, 2016, Providing a Copy of the Town of Caledon Resolution and Report titled, Region of Peel Growth Management Update (Receipt recommended) (See also Items 5.1 and 5.3)

2 GMC-2/ Thursday, May 19, Shauna Danton, Legislative Coordinator, City of Brampton, Letter dated May 6, 2016, Providing a Copy of the City of Brampton Resolution titled The New Approach to Planning, Servicing and Financing Growth in the Region of Peel (Receipt recommended) (See also Items 5.1 and 5.2) 6. IN CAMERA MATTERS 7. OTHER BUSINESS 8. NEXT MEETING 9. ADJOURNMENT

3 4.1-1 REPORT Meeting Date: Growth Management Committee For information DATE: May 12, 2016 REPORT TITLE: FROM: UPDATE ON GROWTH MANAGEMENT STRATEGY Stephen VanOfwegen, Commissioner of Finance and Chief Financial Officer Lorraine Graham-Watson, Commissioner of Corporate Services Dan Labrecque, Commissioner of Public Works OBJECTIVE To provide an update on the Growth Management Strategy, including consultations regarding a new inter-municipal approach to growth management and the establishment of an Inter- Municipal Growth Management Workgroup. REPORT HIGHLIGHTS The Region of Peel s Strategic Plan identifies Growth Management to 2041 as a Term of Council Priority (ToCP). To achieve growth allocation principles, a collaborative approach to planning, servicing and financing growth is being pursued, as directed by Regional Council in 2013 and by the Region s Growth Management Committee (the Committee) in The outcome of the Plan and Manage Growth ToCP that will be presented to Regional Council in June is to reduce the projected cost-revenue gap in order to increase the ability for growth to pay for growth infrastructure, while respecting sound planning principles. To achieve this outcome four strategies are under development and related metrics will be determined to track progress on this project to June As directed by the Committee, a series of consultations with affected stakeholders has been initiated with preliminary feedback indicating a willingness to review options to plan and service growth in a financially sustainable manner. As directed by the Committee, an Inter-Municipal Growth Management Workgroup has been established to undertake an integrated planning, servicing and financing review to develop alternative growth and infrastructure financing options and report back on an agreed upon model. DISCUSSION 1. Background The Region of Peel Strategic Plan ( ) states that a thriving community is one that is integrated, safe and complete, and the Plan identifies Growth Management as a Term of Council Priority (ToCP). In addition, Regional Council previously directed staff to undertake a new, collaborative approach to engaging the local municipalities and the development industry in exploring alternative infrastructure financing options to inform the next Development Charges By-Law update. Based on this direction within the Growth

4 4.1-2 UPDATE ON CONSULTATION REGARDING INTER-MUNICIPAL APPROACH TO GROWTH MANAGEMENT STRATEGY Management ToCP, specific strategies are being developed to plan and manage growth to A set of principles for allocating growth to help plan for complete and healthy communities was previously provided to the Region of Peel Growth Management Committee (the Committee). The principles are: Efficient utilization of existing and planned Regional infrastructure Support growth pays for growth to minimize financial impacts to existing residents and businesses Protection of environmental and agricultural resources Densities that support transit, affordable housing and complete communities Planning for a range of employment over the long-term to adjust to market cycles. To realize these principles, a report, The New Approach to Planning, Servicing and Financing Growth in the Region of Peel, was received by the Committee on March 3, The report outlines a collaborative approach where sound planning principles are considered with servicing and financing implications early in the planning process. 2. Plan and Manage Growth Term of Council Priority (ToCP) Outcome and Strategies At the time of writing this report, work to develop strategies that support the Plan and Manage Growth ToCP is underway. A summary of the ToCP strategies and the 4-year outcome will be presented to Regional Council in June. The 4-year outcome of the Plan and Manage Growth ToCP is: to reduce the projected costrevenue gap in order to increase the ability for growth to pay for growth infrastructure. Progress towards achieving the outcome will be measured in two phases: i) period: by the total net savings identified over the baseline for the 2031 planning period, as shown in Appendix I; ii) Post 2018: by the realization of identified savings according to projections. The strategies to plan and manage growth to 2041 currently under development include: Managing Growth Allocations Managing Infrastructure Investments Managing Revenues Internal Integration and External Stakeholder Collaboration. a) Managing Growth Allocations This strategy will depend upon effective integration across planning, infrastructure and finance areas within the local municipalities and in the Region of Peel. As well, the local municipalities and the Region will need to discuss how to address servicing and financing considerations in the agreed upon growth allocations. This strategy will explore issues such as: Growth assumptions and forecasts (e.g. Places to Grow forecasts vs. growth trends) Changing nature of employment (e.g. reduction in manufacturing jobs; increase in people working from home) - 2 -

5 4.1-3 UPDATE ON CONSULTATION REGARDING INTER-MUNICIPAL APPROACH TO GROWTH MANAGEMENT STRATEGY Stakeholder planning objectives. b) Managing Infrastructure Investments The main focus of this strategy is to leverage and optimize existing infrastructure and to phase in new infrastructure so that it is appropriately staged with development, rather than being too far ahead or behind development. This strategy includes the development of options for: Engineering efficiencies (e.g. capacity adjustments to reflect water usage) Phasing and staging of infrastructure Leveraging and optimizing existing infrastructure. c) Managing Revenues In this strategy the traditional approach to Development Charge (DC) revenue will continue to be used. This strategy also includes the development of options for: Area rating Payment timing Front-end financing Sharing financial risk (e.g. service emplacement agreements; accelerated payment agreements). d) Internal Integration and External Collaboration This strategy supports Regional Council s direction to engage local municipalities and key stakeholders and recognizes the need for iterative collaboration among planning staff, as well as across infrastructure (e.g. water and wastewater and transportation) and finance divisions at the local municipalities and the Region of Peel. To depict these key changes in the planning process, Figure 1 - The Collaborative Approach (Appendix II) was created with the local municipalities. The goal of stakeholder collaboration is to develop solutions that consider varied objectives and interests and will inform the Committee and Regional Council s decisionmaking. For example, discussions will gather critical inputs and analyze high-level and detailed growth scenarios to 2041 and ultimately develop an agreed upon Infrastructure Investment Plan that will be presented to Regional Council. A Plan to deal with Exceptions to the Investment Plan and a Plan to monitor its implementation will also be agreed upon. Inter-Municipal Growth Management Workgroup Update In order to meet the Committee s direction to report back at the May 19 th Growth Management Committee meeting, two meetings of the Inter-Municipal Growth Management Workgroup have been held to date. Terms of Reference for the Inter- Municipal Growth Management Workgroup have been developed with the members and they include the steps outlined in Appendix II. At the time of writing this report, the resolution to initiate this workgroup has been endorsed by the City of Mississauga and the City of Brampton while endorsement is pending with the Town of Caledon

6 4.1-4 UPDATE ON CONSULTATION REGARDING INTER-MUNICIPAL APPROACH TO GROWTH MANAGEMENT STRATEGY The workgroup also reviewed preliminary scenarios from water and wastewater and provided feedback on how best to present the scenarios in order to integrate the municipalities planning, transit and financing agendas. General Consultation Update Consultations with the development industry indicate a willingness to review options to share responsibility for planning infrastructure in an efficient manner. Positive feedback was obtained on the more collaborative approach in particular (Appendix II) because the industry will be consulted in the early stages. A request was made, by the Building Industry and Land Development Association (BILD) for a general information session which is planned for May 18, 2016, followed by a more focused set of discussions to review the scenarios as they develop. Finally, preliminary discussions were held with other stakeholders on the basic concepts related to growth paying for infrastructure growth. Feedback from these discussions focused primarily on the future location of services that require major infrastructure investments and will be taken into account as the infrastructure investment plan is developed. 3. Next Steps With the Inter-Municipal Workgroup more detailed Plan and Manage Growth ToCP strategies will be developed. In addition to status updates that include the progress of ongoing stakeholder collaboration, reports will be brought forward on key milestones including: Final agreed upon scenario(s) Recommended Master Plans and Capital Plan Land Budget and draft Regional Official Plan Amendments (ROPA) Final ROPA Monitoring and Exception Plan

7 4.1-5 UPDATE ON CONSULTATION REGARDING INTER-MUNICIPAL APPROACH TO GROWTH MANAGEMENT STRATEGY CONCLUSION Good progress has been made to achieve the outcome of closing the cost-revenue gap and implementing the new approach to planning, servicing and financing growth. Collaboration with local municipalities and stakeholders is well underway and will continue in order to ensure mutual growth planning objectives are met in a financially sustainable manner. Stephen VanOfwegen, Commissioner of Finance and Chief Financial Officer Lorraine Graham-Watson, Commissioner of Corporate Services Dan Labrecque, Commissioner of Public Works Approved for Submission: D. Szwarc, Chief Administrative Officer APPENDICES Appendix I Outstanding Regional Debt Appendix II The Collaborative Approach For further information regarding this report, please contact Gayle Bursey, Director, Growth Management Strategy, gayle.bursey@peelregion.ca, ext Authored by: Cathy Ancheta, Project Manager, Corporate Project Management Office - 5 -

8 4.1-6 UPDATE ON GROWTH MANAGEMENT STRATEGY APPENDIX I Outstanding Regional Debt $ billions 1.0 Cumulative Deficit of the Growth Program (With OBL Expenditures) Net Outstanding Growth Debt

9 4.1-7 UPDATE ON GROWTH MANAGEMENT STRATEGY APPENDIX II Figure 1 The Collaborative Approach Growth Forecasts Places To Grow Population & Employment Growth Forecasts Apr 2016 Growth Scenarios Region Municipalities Industry Other Stakeholders Aug 2016 Feb 2017 Draft Master Plans Financial Strategies Region Municipalities Industry Other Stakeholders New Agreed Final Scenario Aug 2017 Recommended Capital Plans Recommended Master Plans Public Consultations Dec 2017 Jun 2018 Review DCs Mar 2017 Jun 2017 Land Budget & Draft ROPA Final ROPA Municipal OPAs Public Consultations Agreed to Infrastructure Investment and Exception Plan New New Monitoring Plan Review Assumptions and Adjust

10 4.1-8 Growth Management Update Growth Management Committee May 19, 2016 Gayle Bursey Director, Growth Management Strategy

11 4.1-9 Purpose To provide an update on the Term of Council Priority, Growth Management: Strategies in the new approach Consultation Including the establishment of an Inter-Municipal Growth Management Workgroup 2

12 Background 2013 Council direction new, collaborative approach to engaging the local municipalities and the development industry Explore alternative infrastructure financing options to inform the next Development Charges By-Law update Growth Management as a Term of Council Priority (Peel s Strategic Plan ) 3

13 Principles Use current infrastructure Aim for growth to pay for growth to minimize impacts on residents and businesses Protect environmental and agricultural resources Support densities for transit, affordable housing and complete communities Planning for a range of employment 4

14 The New, Collaborative Approach Report outlines collaborative approach Planning principles are considered with servicing and financing implications early in the planning process 5

15 Overall Outcome To reduce the projected cost-revenue gap in order to increase ability for growth to pay for growth infrastructure through: Agreed upon Infrastructure Investment Plan Managing debt Monitoring Plan Exception Plan 6

16 Strategies Strategies to plan and manage growth to 2041 currently under development include: 1. Managing Growth Allocations 2. Managing Infrastructure Investments 3. Managing Revenues 4. Integration and Collaboration 7

17 Strategies 8

18 Managing Growth Allocations This strategy will explore issues such as: Growth assumptions and forecasts (e.g. Places to Grow forecasts vs. growth trends) Changing nature of employment (e.g. reduction in manufacturing jobs; increase in people working from home) Stakeholder planning objectives 9

19 Managing Infrastructure Investments This strategy includes the development of options for: Engineering efficiencies (e.g. capacity adjustments to reflect water usage) Phasing and staging of infrastructure Leveraging and optimizing existing infrastructure 10

20 Managing Revenues This Strategy will continue to use the traditional approach to Development Charge (DC) revenue This strategy also includes the development of options for: Area rating Payment timing Front-end financing Sharing financial risk (e.g. accelerated payment agreements) 11

21 Integration and Collaboration This strategy includes engaging local municipalities and key stakeholders early in the planning process Iterative collaboration across: Planning Transportation Infrastructure Finance Integration within the local municipalities and the Region and between the local municipalities and the Region. 12

22 Integration and Collaboration (Cont d) General Consultation to date: Development industry willingness to review options Positive feedback on early involvement Request for general information session (May 18) and focused discussions to review cost implications of potential scenarios 13

23 4. Integration and Collaboration (Cont d) Inter-Municipal Growth Management Workgroup: Municipal endorsement Terms of Reference include agreed upon collaborative approach Feedback on how to collaboratively use scenarios to develop a final investment plan SCENARIOS OBJECTIVES COST OF SERVICING Greenfield Intensification To be identified through discussions with municipalities and stakeholders To be provided by Regional staff for discussion with municipalities and stakeholders $ AGREED UPON FINAL INVESTMENT PLAN Other $ $ 14

24 The Collaborative Approach 15

25 Next Steps Inter-Municipal Workgroup: Develop more detailed strategies for Managing Expenditures and Increasing Revenues Future reports on key milestones The final agreed upon scenario(s) Recommended Master and Capital Plans Land budget and draft Regional Official Plan Amendments (ROPA) Final ROPA and Agreed upon Infrastructure Investment and Exception Plan 16

26 4.2-1 REPORT Meeting Date: Growth Management Committee For Information DATE: May 12, 2016 REPORT TITLE: FROM: INPUTS FOR THE NEXT DEVELOPMENT CHARGES BY-LAW UPDATE Stephen VanOfwegen, Commissioner of Finance and Chief Financial Officer OBJECTIVE To update the Growth Management Committee on the scope of background work that will be undertaken to inform the next update to the Development Charges (DC) By-Law as a part of the overall Growth Management Program. REPORT HIGHLIGHTS Through the 2015 DC By-law update several technical matters were raised during reviews with the development community and were left to be considered prior to the next DC By-law update. Changes to the Development Charges Act, 1997 resulting from Bill 73 will also need to be addressed prior to the next DC By-law update. Addressing these technical matters and new legislative requirements will result in an increased scope of work as part of the preparation for the next DC update. Staff will undertake this technical work concurrent to the efforts of the working group established with the area municipalities as part of the overall growth management program efforts to develop a new approach to planning, servicing and financing growth in the Region of Peel. The development community will be included as a key stakeholder in this work. DISCUSSION 1. Background On September 10, 2015, Peel Regional Council adopted Development Charges (DC) By-law which was based on the 2031 planning horizon and came into force on October 5, The statutory deadline for the update of that By-law is October 5, The current growth management program work plan anticipates updating the DC By-law based on the 2041 planning horizon in early 2018 in advance of that statutory deadline. As part of the 2015 DC update several technical issues were raised through consultation with the development community that will require further analysis prior to the implementation of the next DC By-law. On July 9, 2015, Regional Council directed staff to implement a new process of engagement involving the area municipalities and the development community in the next DC By-law

27 4.2-2 INPUTS FOR THE NEXT DEVELOPMENT CHARGES BY-LAW UPDATE update process. On March 3, 2016 the Growth Management Committee gave further direction to staff to engage in consultation with affected stakeholders on a new approach to planning, servicing and financing growth as part of the overall growth management program and to set up a working group in this regard. In December 2015, the Province enacted Bill 73 to amend the Development Charges Act (DCA) 1997 and filed amendments to the related Ontario Regulation 428/15. The new legislation came into force on January 1, 2016 and included several changes that will need to be reflected in the next DC By-law. These changes to the DCA and Regional Council s direction for ongoing consultation have increased the need for greater technical analysis and stakeholder discussions as inputs for the next DC Background Study and By-law updates. The development of these technical inputs will be done concurrently with the consultation work with affected stakeholders required as part of the overall growth management program. There are several technical items that will require further research and analysis prior to the next DC By-law update. Key items to be addressed include: Bill 73 Changes i) Area Rating Under the new DCA, Council will be required to consider area rating prior to enacting a new DC By-law, but the final decision on whether or not to apply area rates still rests with Council. This new requirement will entail additional time, effort and cost to model the impacts of area rating as options for growth planning, servicing and financing are explored. It will also require additional dialogue with the development community and area municipalities. Principles and parameters to guide future area rating decisions will be developed to inform this process. The Region of Peel currently uses a uniform DC rate across the Region with some limited exceptions for police services in the Town of Caledon. Area rating is most applicable to water and wastewater services. The area-specific approach can help to more closely align the capital costs of specific services with the planning areas that will be serviced by the infrastructure and, as a result, can help to inform aspects of the Region s infrastructure financing strategy. Area rating can also be an effective tool to support the Region of Peel s planning objectives, specifically land use intensification and optimizing the use of capital infrastructure. ii) Waste Management Service Levels One of the changes to the DCA was the introduction of waste management services as an eligible expenditure for inclusion in DC rate calculations. The Region of Peel has to establish historic service level standards and calculation methodologies for waste management services for the next DC background study. This work will be done with the intent to capture costs for all eligible growth related waste management costs on a go forward basis since the changes to the DC Act were passed

28 4.2-3 INPUTS FOR THE NEXT DEVELOPMENT CHARGES BY-LAW UPDATE iii) Asset Management Requirements Bill 73 resulted in changes that require asset management plans to deal with all assets whose capital costs are proposed to be funded under the DC by-law, and to demonstrate that all assets are financially sustainable over their full life cycle. Peel s asset management program is at an advanced stage relative to most other Ontario municipalities and the move to comply with this new requirement should not be as intensive as others will experience, but work will still be necessary to ensure that these requirements are met. iv) TransHelp Ridership Estimates Transit service is now added to the list of services without a 10 per cent reduction of capital costs required in determining development charges. This change allows for a greater recovery of transit capital costs. TransHelp is the only transit service for the Region of Peel. Transit service can now be based on a planned level of service rather than the 10-year historical level of service. In addition, transit service is a discrete service in which it can t be combined with other services in determining the planned level of service The calculation process required for TransHelp has now become more complex and prescriptive. Regional staff must determine Transhelp s ridership capacity and update ridership forecasts in advance of the next DC background study. The increased DC revenue potential for the Region of Peel is expected to be relatively small. Technical Items Raised in Previous By-law update v) Impact of Office Intensification Through consultations with the development community in 2015, it was suggested that some non-residential development is being accommodated in existing office space. Regional staff will undertake an analysis to validate this suggestion. If validated, the impact of this trend on future DC calculations will then be examined. vi) No Fixed Place of Work and Work From Home As part of the reviews related to the 2015 DC update, it was identified that there might have been a potential roads oversizing in the capital plans resulting from the exclusion of no fixed place of work (NFPOW) estimates from the employment forecasts. This could have driven higher costs for transportation being included in the 2015 DC rate calculations than would be warranted. A provisional post period deduction of $58.7 million related to roads servicing costs was applied to the DC capital plan in the 2015 DC Background Study to offset this potential. This represents an approximate 5.2 per cent reduction in expected roads servicing costs used to calculate the rates. An increase in NFPOW presents additional risks in ensuring that the Region s investments in infrastructure correspond with demands associated with growth. It will require further analysis to determine the actual impact of increased NFPOW on future infrastructure requirements

29 4.2-4 INPUTS FOR THE NEXT DEVELOPMENT CHARGES BY-LAW UPDATE It is proposed that NFPOW assumption be validated for transportation in the next DC Bylaw update, and that the NFPOW impacts would once again be considered when developing the master servicing plans for water and waste water. vii) Terms of Debt Issuance Discussions in 2015 with development industry representatives surfaced what was perceived as a potential issue around the timing of debt payments falling outside the planning horizon. After further discussion it was concluded that no further explanation was required around the debt cash flow payments beyond 2031 as part of the 2015 DC update. It is proposed that despite this conclusion the term of future debt issuances will be reviewed with the development industry. This will feed into assumptions for the next DC update. viii) Allocation Methodologies The Region of Peel has historically split costs related to growth between the residential and non-residential classes for DC rate calculation purposes. The costs of transportation have been further split between industrial and non-industrial development within the nonresidential class. Questions about the techniques behind these allocations and the potential to also split water and waste water between industrial and non-industrial classes were raised in the 2015 DC By-law update process. Consideration is also being given to whether employment growth is an appropriate proxy to inform the amount and location of infrastructure needed to service industrial development and consequently the amount of costs allocated to the sector. These allocation methodologies will be reviewed as part of the work leading up to the next DC By-law update including a review of allocation assumptions used in developing the master servicing plans and associated capital plans. ix) Benefit to Existing Calculations Extensive discussion took place in 2015 around benefit to existing estimates for transportation projects. As part of the master plan and capital plan development for transportation services, leading up to the next DC background study these estimates will be examined for appropriateness. 2. Proposed Direction/Next Steps All of these new background study requirements will be achievable, but will require time and resources to prepare before the next DC by-law update. To accomplish this staff will prepare a work plan including the engagement of interdepartmental teams as well as supporting consultants as required. Meetings will be held with representatives of the development community to discuss these matters and get feedback well in advance of the next DC By-law update. This process will run concurrent with and inform other consultations required for the growth management program such as the inter-municipal working group, involving staff from the Region and the area municipalities

30 4.2-5 INPUTS FOR THE NEXT DEVELOPMENT CHARGES BY-LAW UPDATE This work will ensure the Region s compliance with updated development charges legislation, inform residential and non-residential cost allocation methodologies, and help the Region to better model factors that are increasing risks to the Region s growth infrastructure investments, such as the changing nature of employment. CONCLUSION The further review of technical items that surfaced from the 2015 DC By-law update process and new Bill 73 related DCA requirements will lead to the need for increased preparation and investment of time prior to the next DC By-law update. Work will be undertaken to ensure the next background study can proceed in accordance with legislative changes and that the Region s stakeholders are involved in the process of updating the technical inputs as required. Stephen VanOfwegen, Commissioner of Finance and Chief Financial Officer Approved for Submission: D. Szwarc, Chief Administrative Officer For further information, please contact Bruce Taylor, Manager, Financial Policy and Development Financing at ext or bruce.taylor@peelregion.ca Authored By: Junior Higgins and Bruce Taylor - 5 -

31 5.1-1 From: Carmela Radice Sent: March 30, :11 PM To: Lockyer, Kathryn Subject: Council - March 30, 2016 At Council s meeting on March 30, 2016 endorsed the report titled the New Approach to Planning, Servicing and Financing Growth in the Region of Peel. Please find attached Resolution endorsing the report titled the New Approach to Planning, Servicing and Financing Growth in the Region of Peel. Carmela Radice Legislative Coordinator T , ext F Carmela.Radice@mississauga.ca City of Mississauga Corporate Services Department Legislative Services Division Visit the Office of the City Clerk's page on the City of Mississauga's website to access agendas, minutes, the Council and Committees calendar, and much more! Please consider the environment before printing.

32 5.1-2 RESOLUTION adopted by the Council of The Corporation of the City of Mississauga at its meeting on March 30, Moved by: Nando Iannicca Seconded by: Matt Mahoney WHEREAS the Peel Regional Council on March 10, 2016 passed Resolution requesting the endorsement of the City of Mississauga Council regarding the corporate report titled the New Approach to Planning, Servicing and Financing Growth in the Region of Peel ; NOW THEREFORE BE IT RESOLVED that the City of Mississauga Council endorse the corporate report titled the New Approach to Planning, Servicing and Financing Growth in the Region of Peel. Carried Page 1 of 1

33 mhtml:file://c:\users\11063\appdata\local\microsoft\windows\temporary Internet Fil... Page 1 of From: Barbara Karrandjas [mailto:barbara.karrandjas@caledon.ca] Sent: May 12, :16 PM To: ZZG-COUNCIL Subject: FW: Staff Report re: Region of Peel Growth Management Update Good afternoon, At a Council Meeting on May 10, 2016, Council adopted the following recommendations with respect to Staff Report : STAFF REPORT RE: REGION OF PEEL GROWTH MANAGEMENT UPDATE. That Staff Report regarding Region of Peel Growth Management Update be received; and That Peel Regional Council Resolution attached as Schedule A to Staff Report be endorsed; and That copies of Staff Report be forwarded to the Region of Peel, the City of Brampton and the City of Mississauga. Enclosed please find a copy of Staff Report for your records. Have a great day! Barbara Karrandjas Coordinator, Council Committee Legislative Services Corporate Services Department Town of Caledon 6311 Old Church Road Caledon, ON L7C 1J x This message (and any associated files) is intended only for the use of the individual or entity to which it is addressed. The content of the message is the property of the Corporation of the Town of Caledon. The message may contain information that is privileged, confidential, subject to copyright and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, you are notified that any dissemination, distribution, copying, or modification of this message is strictly prohibited. If you have received this message in error, please notify the sender immediately, advising of the error and delete this message without making a copy. (Information related to this is automatically monitored and recorded and the content may be required to be disclosed by the Town to a third party in certain circumstances). Thank you.

34 5.2-2 Staff Report Meeting Date: May 3, 2016 Subject: Submitted By: Region of Peel Growth Management Update Kathie Kurtz, Senior Policy Planner, Community Services RECOMMENDATIONS That Staff Report regarding Region of Peel Growth Management Update be received; and That Peel Regional Council Resolution attached as Schedule A to Staff Report be endorsed; and That copies of Staff Report be forwarded to the Region of Peel, the City of Brampton and the City of Mississauga. EXECUTIVE SUMMARY Amendment 2 to the Growth Plan for the Greater Golden Horseshoe, which came into effect on June 17, 2013 introduced new 2031 and 2041 forecasts for the Region of Peel. Region of Peel staff recommended a distribution of these Regional forecasts among the Area Municipalities to Regional Growth Management Committee (GMC) on April 17, The GMC referred the report back to staff pending a sustainable business plan for financing growth. Since that time there have been a number of reports to GMC and a workshop on Sustainable Growth Financing. Most recently, a report titled A New Approach to Planning, Servicing and Financing Growth in the Region of Peel prepared by Westbrook Public Affairs was presented to GMC on March 3, The GMC directed that a working group of staff from the Region of Peel and the Area Municipalities be established to review the alternative growth infrastructure financing options and report back with an agreed upon model for growth infrastructure financing. It was also recommended that this recommendation be forwarded to the three Area Municipal Councils for endorsement. The GMC adopted these recommendations through Resolution On March 10, 2016, Regional Council adopted the recommendations through Resolution This report provides Council with an update on the Growth Management initiatives of the Region of Peel and the Town of Caledon and presents Regional Council Resolution to Council for endorsement as shown on Schedule A to this report. REFFERRAL TO RECOMMENDED DIRECTION REQUIRED P RECEIPT RECOMMENDED Page 1 of 4

35 5.2-3 Staff Report DISCUSSION The purpose of this report is to review the Growth Management initiatives of the Region of Peel and the Town of Caledon and present Regional Council Resolution to Council for endorsement as shown on Schedule A to this report. Background Amendment 2 to the Growth Plan for the Greater Golden Horseshoe amended Schedule 3 which sets out population and employment forecasts for the upper- and single-tier municipalities in the Greater Golden Horseshoe to In addition to adding new 2041 forecasts for the Region of Peel, Amendment 2 increased the 2031 forecasts, which are known as the 2031B forecasts. Amendment 2 came into effect on June 17, 2013 and conformity to this Amendment is required by June 17, On May 8, 2013 the Region held an Open House in Caledon and a Growth Management Workshop on May 30, Caledon retained Watson and Associates Economists Ltd. to undertake a Growth Forecasts Review and held Council Workshops on Growth Management in July and September The Regional Growth Management Committee (GMC) was established in fall 2013 to better understand and address the key issues to managing growth in Peel. The Growth Management Program focused on four key components: The Region of Peel 2041 Official Plan Amendment; the 2015 and 2017 Development Charges By-law Updates; the Financial Plan/Financing Options Review; and the Costs, Benefits and Risks of Growth to 2041 Study. By 2014, Caledon had completed its Growth Forecasts Review work and recommended population and employment forecasts for 2031B and 2041 to Council on March 18, 2014 (DP ). The 2031B forecasts for population and employment were 113,000 and 49,000 respectively (an increase of 5,000 population and 3,000 jobs over the approved 2031 forecasts as approved through OPA 226). The new 2041 numbers were 146,000 population and 73,000 jobs. These numbers were brought into staff discussions with the Region of Peel, City of Brampton and City of Mississauga, and the desired forecasts of the Area Municipalities were aggregated to gauge conformity with the Region of Peel forecasts in Growth Plan Amendment 2. To meet the Region of Peel employment forecast for 2041, Caledon staff recommended to Council that the 2041 employment forecast be increased by 5,000 to 78,000 on April 1, 2014 (DP ). Regional staff presented the recommended Area Municipal growth allocations to GMC on April 17, The Committee deferred consideration of the Area Municipal growth allocations pending the completion of a sustainable business plan for financing growth. Regional staff reported to GMC regarding the ongoing Cost of Growth Studies on May 15, On June 5, 2014 GMC received a presentation on Planning for Growth in Peel, the Return on Water and Wastewater Investment Study and Capital Financing Options. GMC adopted a recommendation directing that expert services be retained and that staff work together with the Area Municipalities to gather and analyze Page 2 of 4

36 5.2-4 Staff Report information needed to understand the full Regional and Area Municipal costs/benefits of growth, and that a Growth Management Workshop be held on September 5, On July 17, 2014 GMC received a presentation on Financial Overview on the Current State of Affairs Development Charges. On April 30, 2015 GMC received a presentation on Benefits of Growth. On July 9, 2015 Regional Council directed staff to undertake a different approach to engaging the development community and the Area Municipalities in exploring alternative growth infrastructure financing options to inform the next Development Charges By-law update. Regional Staff Report to Growth Management Committee March 3, 2016 On March 3, 2016 Regional staff presented a report on the New Approach to Planning, Servicing and Financing Growth in Peel Region discussion paper authored by Westbrook Public Affairs. The Regional staff report outlined the progress that had been made toward supporting a financially sustainable growth plan and the growth related risks that would need to be managed. The report stated that a new approach to planning, servicing and financing growth in Peel is needed. For growth-related investments to be financially sustainable, the costs, benefits and risks of growth must be shared among the Region, Area Municipalities and the development industry. The discussion paper incorporates feedback from the Area Municipalities and development industry and outlines the key aspects of the new approach. The key aspects to the new approach outlined in the discussion paper are: i. The Region needs to reduce the growth cost-revenue gap; ii. The Region needs to integrate financing and servicing considerations into planning decisions early in the process; iii. Together with the Area Municipalities and the development sector, the Region needs to be more agile in its approach to the changes and uncertainty that accompany growth and development; iv. The Region needs to adopt a growth-focused, risk-based financing strategy. The new approach is an iterative process that requires collaboration with the Area Municipalities and the development industry. The recommendations to GMC included a recommendation that a working group of staff from the Region and the Area Municipalities be established to review the alternative growth infrastructure financing options, and report back to Growth Management Committee with an agreed upon model for growth infrastructure financing. It was also recommended that the recommendation be forwarded to the Area Municipal Councils for endorsement. These recommendations were adopted by GMC and Regional Council through Resolution (attached as Schedule A to this report). The discussions with the Region, Area Municipalities and development industry will inform key milestones such as the Base Master Servicing Plans, Land Budget and draft ROPA and will result in more integrated and comprehensive planning, serving and financing strategies. Page 3 of 4

37 5.2-5 Staff Report The Region will undertake a comprehensive review prior to finalizing future ROPAs to ensure that the objectives of all stakeholders, including the Region s interests, are assessed. The Growth Management Working Group for the new approach met on April 7, 2016 to discuss the Working Group Terms of Reference and Meeting Schedule and Participants. The Town s Policy and Sustainability staff is attending the Working Group meetings. The Working Group will report back to the GMC on May 19, 2016 regarding the New Approach Recommendations. Conclusion The Region of Peel is seeking to consult with and involve the Town of Caledon and other Area Municipalities in its development and implementation of a new approach to planning, servicing and financing growth. This approach will be designed to result in a more financially sustainable planning process for the Region and the Area Municipalities. It is therefore recommended that Council endorse Regional Council Resolution FINANCIAL IMPLICATIONS There are no immediate financial implications associated with this report at this time. COUNCIL WORK PLAN Growth (2016) Challenge upper levels of government on growth and the required infrastructure ATTACHMENTS Schedule A Regional Council Resolution Page 4 of 4

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