TOWN OF AJAX 2013 DEVELOPMENT CHARGES BACKGROUND STUDY

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1 TOWN OF AJAX 2013 DEVELOPMENT CHARGES BACKGROUND STUDY JUNE 19, 2013

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3 CONTENTS Page EXECUTIVE SUMMARY (i) 1. DEVELOPMENT CHARGES ACT BACKGROUND STUDY REQUIREMENTS 1.1 Introduction Ajax Development Charges Development Charge Prerequisites CURRENT TOWN OF AJAX POLICY 2.1 Schedule of Charges Services Covered Timing of DC Calculation and Payment Indexing Redevelopment Credit Non-Statutory Exemptions Community Improvement Project Areas ANTICIPATED DEVELOPMENT IN AJAX 3.1 Requirements of the Act Basis of Population, Household and Non-Residential Gross Floor 3-1 Area Forecast 4. THE RESULTANT INCREASE IN THE NEED FOR SERVICE 4.1 Introduction Services Potentially Involved The Increase in the Need for Service Local Service Policy Credits Carried Forward Eligible Debt and Committed Excess Capacity Council s Assurance DCA CALCULATION REQUIREMENTS 5.1 Introduction Level of Service Cap Uncommitted Excess Capacity Benefit to Existing Development Grants, Subsidies and Other Contributions Post-period Capacity DC Reserve Fund Balances Other Deductions Cost Differentiation by Type of Development Area-specific Charges 5-6

4 CONTENTS Page 6. DEVELOPMENT CHARGE RULES 6.1 Introduction The Amount of the Development Charge Payable in Any Particular Case Development Charge Exemptions Phasing-in of Development Charges Indexing of Development Charges The Application of Development Charges to Redevelopment BY-LAW ADOPTION AND IMPLEMENTATION 7.1 Introduction Long Term Capital and Operating Cost Examination Consultation The By-law Adoption Process By-law Implementation 7-2 APPENDICES A ANTICIPATED DEVELOPMENT IN AJAX A-1 B DEVELOPMENT CHARGE RECOVERABLE COST CALCULATIONS B-1 C DEVELOPMENT CHARGE CALCULATION C-1 D LONG TERM CAPITAL AND OPERATING COST EXAMINATION D-1 E DEVELOPMENT CHARGE ECONOMIC IMPACT MATERIAL E-1 F TOWN OF AJAX DEVELOPMENT CHARGE BY-LAW (2013) F-1 (2008 BY-LAW INCLUDED FOR REFERENCE)

5 EXECUTIVE SUMMARY

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7 (i) EXECUTIVE SUMMARY 1. Purpose of this Background Study 1.1 This Background Study has been prepared pursuant to Section 10 of the Development Charges Act, 1997 (DCA) and, together with the proposed by-law, is being made available to the public, as required by Section 12 of the Act, more than two weeks prior to the public meeting of Council, which is to be held on July 4, The charges calculated represent those which can be recovered under the DCA, 1997, based on the Town s capital spending plans and other assumptions which are responsive to the requirements of the DCA. A decision is required by Council, after receiving input at the public meeting and other consultation sessions and receiving the completed study and by-law, as to the magnitude of the charge it wishes to establish, for residential, commercial, industrial and/or institutional development. Property tax, user rate or other funding will be required to finance any potentially DC-recoverable capital costs which are not included in the charge which is adopted. 1.3 Other decisions are also involved in finalizing development charge policy and the by-law, including exemptions, phasing in, indexing, applicability to the redevelopment of land, and the schedule of charges by type of land use. It is the purpose of the public meeting and consultation activity, to obtain input on these matters. 2. The 2013 Development Charge Calculation 2.1 Table ES-1 presents the proposed schedule of Town-wide charges, based on the costing and related assumptions contained in Appendices B & C, in comparison with the Town s existing development charges. The calculated charges are reflected in the proposed by-law contained in Appendix F. 2.2 Table ES-2 summarizes the Town s Development Related Capital Program (10-18 years in length, depending on the service involved) and the deductions made thereto, in accordance with the DCA. In summary, the gross development-related capital cost of the entire program is $179.6 million. Of this amount, $132.2 million has been determined to be DC-recoverable ($86.3 million from residential development and $45.9 million from industrial/commercial/institutional development (non-residential)). The difference between the gross and DC recoverable amounts comprises the following deductions, pursuant to the Development Charges Act: - $ 22.2 million Beyond 10 year Service Level Cap - $ 14.8 million Benefit to Existing Development - $ 0 million Post Period Capacity - $ 10.4 million Subsidies, Other Contributions, and 10% Stat. Deduction $ 47.4 million

8 (ii) TABLE ES-1 TOWN OF AJAX COMPARISON OF DEVELOPMENT CHARGES Residential Full Non-residential Charge Per Single Detached Unit Per Sq. Ft. of GFA Current Calculated Herein Change Current Calculated Herein Change Sept 30th, Sept 30th, Development-related Studies $ 128 $ % $ 60 $ 0.07 $ % $ 0.03 Fire $ % $ (120) % $ (0.07) Parks $ 2,348 2, % $ (79) % $ (0.09) Recreation $ 2,803 3, % $ % $ (0.08) Libraries $ % $ (37) % $ (0.02) Operations $ % $ (45) % $ (0.04) Roads & Bridges, and Streetlighting & Sidewalks $ 5,342 $7, % $ 2, % $ 1.38 TOTAL $ 12,029 $ 14, % $ 2,778 $ 3.48 $ % $ Alternate Roads & Bridges, and Streetlighting & Sidewalks calculation (not preferred): H:\AJAX\DC \[Ajax DC Model 2012.xlsx]ES-1

9 (iii) MUNICIPALITY: Town of Ajax TABLE ES-2 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Less: Potential DC Recoverable Cost Service Gross Ineligible re: Eligible Benefit to Other (e.g. Net Costs Capital Level of Increase Existing 10% Stat. & Benefiting Residential Non-Residential Cost Service in Need Development 1 Grants, Landowner New Share Share Est. Contributions) Development Development-related Studies 1,990,000-1,990, ,000 74,500 1,545, , ,655 Fire 2,922,729-2,922,729 41,375-2,881,354 1,699,999 1,181,355 Parkland Development 14,893,600-14,893,600 1,117,020 1,377,658 12,398,922 11,778, ,946 Recreation 36,739,700 14,629,508 22,110,192 2,211,019 1,989,917 17,909,256 17,013, ,463 Libraries 10,969,654 7,566,943 3,402, , ,261 2,953,602 2,805, ,680 Operations Facilities & Vehicles 3,489,000-3,489, , ,455 2,983,095 1,760,026 1,223,069 Roads & Bridges 97,495,000-97,495,000 9,699,600 6,455,928 81,339,472 44,736,710 36,602,762 Streetlighting, Sidewalks, & Signals 11,145,000-11,145, ,250-10,167,750 5,592,263 4,575, ,644,683 22,196, ,448,232 14,802,562 10,466, ,178,950 86,299,532 45,879,418 1 Inclusive of post planning period capacity, where applicable. H:\AJAX\DC \[AjaxDC Model 2012.xlsx]ES-2

10 2.3 The capital program for roads excludes the Audley Road flyover. This project was identified in the 2013 Transportation Masterplan, but has not been included in the DC calculation at this time, due to the significant cost and impact on the resulting development charge. 2.4 Table ES-3 sets out the existing and calculated charges by type of dwelling unit. 3. Council Approvals Sought At this stage in the process, the Background Study and proposed DC by-law are being provided for information purposes, as part of the consultation process. At such time as that process is complete and final DC recommendations are made to Council, approval will be sought for: (iv) the 2013 DC by-law; the Background Study, including the development forecast, the growth-related capital program, the DC calculation and associated material, subject to any Addendum which may be produced prior to by-law adoption. The proposed by-law includes several changes in addition to the updated schedule of charges: the provisions of the Pickering Village CIP have been modified to reflect the proposed plan; the treatment of private retirement residences with self-contained suites has been clarified to state that these units will be subject to the small apartment charge; definitions have been provided for agriculture operations and farm building to provide greater clarity regarding the non-residential farm building exemption; and the by-law indexing date has been changed to July 1 each year to correspond to the Region of Durham. 4. Acknowledgements The consultant wishes to acknowledge, with appreciation, the guidance, input and considerable efforts of Rob Ford and Dianne Valentim, as well as the numerous Town operating staff who were involved in the production of this Background Study.

11 (v) TABLE ES-3 TOWN OF AJAX 2013 TOWN-WIDE DEVELOPMENT CHARGE CALCULATION Development Type Existing Charge Calculated Charge Residential (Per Dwelling Unit) Single Detached $ 12,029 $ 14,807 Apartments 2 Bedroom and Larger 6,628 $ 8,319 Apartments Bachelor and 1 Bedroom 4,365 $ 5,015 Other Dwellings 9,410 $ 11,583 Non-Residential Development per sq.ft. (gross floor area) $3.48 $ 4.59 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]ES-3

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13 1. DEVELOPMENT CHARGES ACT BACKGROUND STUDY REQUIREMENTS

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15 1. DEVELOPMENT CHARGES ACT BACKGROUND STUDY REQUIREMENTS 1.1 Introduction The Development Charges Act (DCA) requires that a development charge background study must be completed by Town Council before passing a development charge by-law. The mandatory inclusions in such a study are set out in s.10 of the DCA and in s.8 of O.Reg. 82/98, and are as follows: a) the estimates under paragraph 1 of subsection 5(1) of the anticipated amount, type and location of development; (addressed in Chapter 3 of this report) b) the calculations under paragraphs 2 to 8 of subsection 5(1) for each service to which the development charge by-law would relate; (addressed in Appendix B of this report) 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; (addressed in Appendix D of this report) d) the following for each service to which the development charge relates: 1. The total of the estimated capital costs relating to the service. 2. The allocation of the costs referred to in paragraph 1 between costs that would benefit new development and costs that would benefit existing development. 3. The total of the estimated capital costs relating to the service that will be incurred during the term of the proposed development charge by-law. 4. The allocation of the costs referred to in paragraph 3 between costs that would benefit new development and costs that would benefit existing development. 5. The estimated and actual value of credits that are being carried forward relating to the service. (O.Reg. 82/98 s.8 and addressed in Appendix B of this report) A schedule of key development charge process dates proposed by the Town of Ajax, is set out on the following page as Figure 1-1, consistent with the legislative requirements to hold a public meeting for consultation purposes in advance of adopting the successor DC by-law(s). 1-1

16 1-2 FIGURE 1-1 SCHEDULE OF KEY DEVELOPMENT CHARGE PROCESS DATES FOR THE TOWN OF AJAX STEP DATE 1. DC by-law update initiation July, Stakeholder Consultation #1 January, Draft Background Study Provided to Management Committee 4. Review Draft Background Study with Management Committee Late March, 2013 April 10, Stakeholder Consultation #2 April 23, Statutory public meeting notice At least 20 days notice of public meeting (no later than June 13) 7. Proposed by-law and Background Study available to public At least 2 weeks prior to public meeting (by June 19) 8. Statutory public meeting July 4, Council considers adoption of Background Study and passage of bylaw 10. Newspaper and written notice given of by-law amendment passage September 9, 2013 By 20 days after passage 11. Last day for by-law appeal 40 days after passage 12. Town makes available pamphlet (where by-law not appealed) By 60 days after inforce date

17 Ajax Development Charges 1. Development charges are payments made by new development in Ajax (and other municipalities) normally as part of the building permit approval and/or the subdivision/severance agreement process. These payments are made by all such new development, unless specifically exempt by the Development Charges Act or the Town s DC by-law. 2. These payments are made for the initial capital requirements of providing services to new development anticipated over the planning period. All Town-funded services are potentially eligible for DC funding, except those specifically excluded via the Development Charges Act. 3. Capital is defined in the DCA to include the municipal cost to acquire, lease, construct or improve land or facilities, including rolling stock (7+ year life), furniture and equipment (other than computer equipment), library materials, as well as related study and financing costs. 4. The Town of Ajax has imposed development charges under the DCA since 1991 and prior to that as lot levies pursuant to the Planning Act. The Town s current DC by-law (No ) came into effect on September 8, 2008 with a maximum life of 5 years. 5. This by-law provides for development charge payments which vary with the amount and type of new development, as detailed in Chapter These charges are indexed for inflation in accordance with the Statistics Canada Quarterly Construction Price Statistics annually, based on the prescribed Statcan index. 7. The monies collected under a DC by-law are maintained in separate reserve funds, one for each of the services involved. The existing charge is comprised of the following services: Development-related Capital Growth Studies, Fire, Libraries, Transportation, Operations, Parkland and Trail Development, and Recreation. 8. Each development charge paid is allocated, as a statutory requirement, to those reserve funds, in accordance with the development charge for each service. It is also required that the monies only be expended for the purposes for which the DC was calculated. 9. In calculating the charge, it is necessary to: establish a new development forecast for population and housing, and for employees and floor area; determine and cost the additional services such new development will require and ensure that the program has Council approval; make the cost deductions required by the Act with respect to service level, benefit to existing development, excess capacity, grants and contributions, the statutory 10%, etc.;

18 1-4 calculate development charges by type of use and document this in a Background Study and by-law, together with related policies; take the study and proposed by-law through a public process, seeking Council approval thereof. 10. Development charges represent a significant capital funding source for many services and serve to provide a portion of funding for designated projects. The current by-law updating process is designed to ensure full DC coverage for Town services. 1.3 Development Charge Prerequisites As per the Development Charges Act, 1997, the Town can impose development charges for: 1. A Town service and funding responsibility other than: cultural or entertainment facilities such as museums, theatres and art galleries; tourism facilities, including convention centres; parkland acquisition; hospital provision; waste management services; Municipal/local board general administration headquarters. 2. A service which will experience an increase in capital needs at least partially attributable to residential and/or non-residential growth in Ajax mid 2013 to mid 2023 (and to 2031 in the case of transportation). 3. A service for which Town Council has or will (as part of the DC process) approve(d) a capital forecast which includes capital capacity expansion projects as per para Such capital capacity expansion projects that are not fully funded by grants, subsidies or developer contributions or other contributions. 5. Such capital projects that involve the acquisition, lease, construction or improvement of land, buildings, including furniture and equipment (except computer equipment), rolling stock with an estimated useful life of 7 years or more, studies and borrowing costs (as well as library materials). 6. Such capital costs that don t relate to a time beyond the next decade (except in the case of roads and watercourse improvements). 7. Such capital costs that don t serve to increase the future per capita/employee level of service beyond the average attained in Ajax over the period. The following tabular text sets out the method that must be used to determine development charges. The underlining has been added to the quotations for clarification/ emphasis and is not part of the statute or regulation quoted on the left side of the page. The DC calculation process is also summarized schematically in Figure 1-2 which follows.

19 SUMMARY OF STATUTORY DEVELOPMENT CHARGE CALCULATION REQUIREMENTS 1-5 s.s.5(1) of the DCA (and associated Regulations) Paragraph 1. The anticipated amount, type and location of development, for which development charges can be imposed, must be estimated. 2. The increase in the need for service attributable to the anticipated development must be estimated for each service to which the development charge by-law would relate. Commentary Virtually all municipalities forecast all development (including DC-ineligible) in the first instance. That development is used as the denominator in the DC calculation with the full eligible cost of servicing all such development used as the numerator. That way, growth-related servicing costs are equitably spread over all benefiting development, the municipality does not recover DCs from exempt development and this would ensure that the requirements of s.s.5(6)3 have been met. That is, capital costs have not been offloaded from one type of development to another. This step involves estimating the additional requirement for each individual service that is needed by the development increment in paragraph 1. The anticipated development in para. 1 must correspond to the service attribution in para. 2. This involves removing statutorily ineligible development (i.e. municipalities, schools, specified industrial expansions, specified residential intensification and other statutorily exempt public uses) and the servicing cost thereof. However, this would be very difficult to accomplish, particularly because numerous unspecified geographic locations are involved for such development, which makes the servicing cost difficult to identify. As a result, this approach has not been used. Instead, the total cost/total development approach outlined above is used and has the same effect on the DC quantum.

20 1-6 s.s.5(1) of the DCA (and associated Regulations) 3. The estimate under paragraph 2 may include an increase in need only if the council of the municipality has indicated that it intends to ensure that such an increase in need will be met. 1 Commentary The capital forecast underpinning the DC calculation must be formally approved by Council in one of the ways indicated in the Regulation. O.Reg. 82/98 s.3. For the purposes of paragraph 3 of subsection 5(1) of the Act, the council of a municipality has indicated that it intends to ensure that an increase in the need for service will be met if the increase in service forms part of an official plan, capital forecast or similar expression of the intention of the council and the plan, forecast or similar expression of the intention of the council has been approved by the council. 4. The estimate under paragraph 2 must not include an increase that would result in the level of service exceeding the average level of that service provided in the municipality over the 10-year period immediately preceding the preparation of the background study required under section The estimate also must not include an increase in the need for service that relates to a time after the 10-year period immediately following the preparation of the background study unless the service is set out in subsection (5). This provision creates a service level cap equal to the cost of providing service to the anticipated development, consistent with the 10-year historical average level of service. In accordance with s.s.5(1)4, services such as parks and recreation, etc., are restricted to a maximum 10- year planning horizon. s.s.5(5) lists water, wastewater, storm water, road, police and fire services. They are not subject to a 10 year planning period cap. Services other than those excluded in s.s.2(4), may be defined by the municipality and, in some cases, grouped into service categories for purposes of reserve funds and credits (as per s.7). O.Reg. 82/98 s.4(1) For the purposes of paragraph 4 of subsection 5(1) of the Act, 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. Two level of service considerations must be taken into account in satisfying compliance re the 10-year historical average level of service cap. These considerations involve quantity (e.g. floor space/capita) and quality (e.g. cost per s.m. of floor space). 1 The Act notes that the provisions may be further governed by regulations.

21 1-7 s.s.5(1) of the DCA (and associated Regulations) Commentary s.s.4(1.1) provides that in determining the quality of a service, the replacement cost, exclusive of any allowance for depreciation, shall be the amount used. s.s.4(2) addresses the service level in an excluded geographic area where a service is not provided. s.s.4(4) limits the service level in part of a municipality to the level otherwise applicable to the full municipality. s.s.4(3) modifies the service level cap where a higher level is required by another Act. O.Reg. 206/04 amended s.4 of O.Reg. 82/98 by adding the following subsection: (1.1) In determining the quality of a service under subsection (1), the replacement cost of municipal capital works, exclusive of any allowance for depreciation, shall be the amount used. (underlining added) 5. The increase in the need for service attributable to the anticipated development must be reduced by the part of that increase that can be met using the municipality s excess capacity, other than excess capacity that the council of the municipality has indicated an intention would be paid for by new development. 2 The Reg. clarifies that the quality level of service measure is to be based on the undepreciated replacement cost of municipal capital works. Uncommitted excess capacity is available capacity that obviates (part of) the need for new projects. It is different than Post Period Capacity, which is not needed by development during the planning period and is provided for the use of subsequent, i.e. post or 2031 development, which can be required to fund it through future DCs. 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 development charges or other similar charges. The Reg. explains the circumstances under which (part of) the cost of committed excess capacity, (i.e. infrastructure in the ground from prior DC by-laws or otherwise), can be recovered via future DCs. 2 The Act notes that the provisions may be further governed by regulations.

22 1-8 s.s.5(1) of the DCA (and associated Regulations) 6. The increase in the need for service must be reduced by the extent to which an increase in service to meet the increased need would benefit existing development. 1 Note: no regulatory clarification has been provided. 7. The capital costs necessary to provide the increased services must be estimated. The capital costs must be reduced by the reductions set out in subsection (2). What is included as a capital cost is set out in subsection (3). 1 Commentary Existing development benefits from: the repair or unexpanded replacement of existing assets; an increase in municipal average service level or existing operational efficiency; the elimination of a chronic servicing problem not created by growth; providing services to existing development where none previously existed (e.g. water service). s.s.5(2) refers to capital grants, subsidies and other contributions made to a municipality or that Council anticipates will be made in respect of the capital costs. O.Reg. 82/98 s. 6 indicates that: Unless the person making the grant, subsidy, etc., was specific as to how it is to be applied, the contribution is to be shared between growth and non-growth project components in proportion to the way in which the costs were allocated in s.s.5(1)6. s.s.5(3) defines capital costs to include: the acquisition or lease of (an interest in) land; construction, improvement, acquisition or lease (capital component only) costs for buildings/structures/facilities; 7+ year useful life rolling stock; Furniture, furnishings and equipment, other than computer equipment; library materials; studies re above; DC Background Studies; and interest on related borrowings. These costs exclude local services related to a plan of subdivision or a consent approval, to be installed or paid for by the owner (s.s.2(5)). Includes debt payments related to previously constructed growth-related works.

23 1-9 s.s.5(1) of the DCA (and associated Regulations) 8. The capital cost must be reduced by 10 per cent. This paragraph does not apply to services set out in subsection (5). 9. 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). s.s.5(6): The rules developed under paragraph 9 of subsection (1) to determine if a development charge is payable in any particular case and to determine the amount of the charge are subject to the following restrictions: 1. The rules must be such that the total of the development charges that would be imposed upon the anticipated development is less than or equal to the capital costs determined under paragraphs 2 to 8 of subsection (1) for all the services to which the development charge by-law relates. Commentary For example, the 10% reduction does apply to: Parks; Recreation; and Libraries. The purpose of this reduction is undefined, beyond the Province s expressed wish in 1997 to moderate development charge quantum. The exclusion of various services under s.s.2(4) serves a similar purpose. (i.e. Cultural/entertainment facilities, including museums, theatres and art galleries; tourism facilities, including convention centres; parkland acquisition; public hospitals, waste management services; and general administration headquarters for municipalities/local boards). These are mandatory DC by-law inclusions as to how the charge is to be applied to development types and circumstances. These are three over-riding tests to be met by the DC by-law. A municipality cannot collect more than the calculated cost for each service (if the amount of development and resultant revenue outpaces the forecast, then address via a reserve fund deduction in the DC calculation in the next round or other appropriate means). 2. If the rules expressly identify a type of development they must not provide for the type of development to pay development charges that exceed the capital costs, determined under paragraphs 2 to 8 of subsection (1), that arise from the increase in the need for services attributable to the type of development. A municipality cannot offload the cost of servicing one type of development onto another type. e.g. Industrial servicing costs cannot be transferred to residential development and single detached unit servicing costs cannot be transferred to apartments.

24 1-10 s.s.5(1) of the DCA (and associated Regulations) However, it is not necessary that the amount of the development charge for a particular development be limited to the increase in capital costs, if any, that are attributable to that particular development. 3. If the development charge by-law will exempt a type of development, phase in a development charge, or otherwise provide for a type of development to have a lower development charge than is allowed, the rules for determining development charges may not provide for any resulting shortfall to be made up through higher development charges for other development. 10. The rules may provide for full or partial exemptions for types of development and for the phasing in of development charges. The rules may also provide for the indexing of development charges based on the prescribed index. Commentary It is not necessary that the average municipal-wide per unit servicing costs funded by the DC reflect the needs of any particular development project. Provides further clarification on the inability of the bylaw to offload cost recovery from one type of development to another, in this case from exempt or discounted development to non-exempt development. These are optional by-law inclusions such as authority to set rules on discretionary exemptions, phasing in of DCs and indexing of DCs.

25 1-11 FIGURE 1-2 THE PROCESS OF CALCULATING A DEVELOPMENT CHARGE UNDER THE DEVELOPMENT CHARGES ACT, 1997 Anticipated Development 1. Tax Base, User Rates, etc. 2. Ineligible Services Estimated Increase in Need For Service Level of Service Ceiling Re: Increased Need Subdivision Agreements and Consent Provisions 7. Specified Local Services where applicable Needs That Will Be Met 5. Examination of the Long Term Capital and Operating Costs For Capital Infrastructure 6. Less: Grants, Subsidies and Other Contributions 9. Less: Uncommitted Excess Capacity 8. Less: 10% Statutory Deduction Where Applicable 11. Less: Benefit To Existing Development 10. Financing Cost, Inflation and Investment Considerations re Cash Flow Calculation 14. Development Charge Net Capital Costs Costs for new development vs. existing development for the term of the by-law and the balance of the period selected 15. Amount of the Charge By Type of Development (including apportionment of costs - residential and non-residential) 17. Plus: Unfunded Works in Place Which Will Benefit Future Development 12. Plus: Credit Obligations to Landowners to be Recovered 13. Development Charge By-law(s) Spatial Applicability 16. Consideration of exemptions, phase-ins, etc.

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27 2. CURRENT TOWN OF AJAX POLICY

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29 CURRENT TOWN OF AJAX POLICY 2.1 Schedule of Charges On September 8, 2008, the Town of Ajax passed By-law No under the Development Charges Act, The by-law came into effect on that day. It imposes development charges on residential and non-residential development. The rates in effect for the first and the current period are as follows. Use Effective September 8, 2008 Effective September 30, 2012 Residential charges single/semi-detached $11,631/unit $12,029/unit apartments with two or more bedrooms $6,409/unit $6,628/unit apartments with less than two bedrooms $4,221/unit $4,365/unit other dwelling $9,098/unit $9,410/unit Non-Residential gross floor area $3.36/sq.ft. $3.48/sq.ft. Complete building permit applications received prior to October 8, 2008 and issued by December 31, 2008 had the option of being subject to the lower of the existing vs. the proposed charge (s.s.2(4)). 2.2 Services Covered The following are the services covered under By-law No : Development-related capital growth studies; Fire stations, vehicles and equipment; Transportation including roads, structures, sidewalks, streetlights, traffic signals, and multi-use trails; Operations, including works yards, equipment and services related thereto; Parkland and trail development, equipment and related services; Major indoor recreational facilities, furnishings, equipment and related services; Libraries including furniture, shelving, related equipment and services and reference/ circulation materials. (Schedule A ) 2.3 Timing of DC Calculation and Payment Development charges are calculated and payable on the day that the first building permit is issued in relation to a building or structure on land to which a DC applies. If no building permit is required, payment is made at the time that the first approval is granted. (s.s.9(1))

30 Indexing By-law No provides for the mandatory annual indexing of charges on September 30 th of each year (s.13), based on the change in the Construction Price Statistics Index for the most recent twelve month period. Table 2-1 provides the rates currently in effect (which include indexing from 2008), as well as a breakdown of the charges by service. Service TABLE 2-1 TOWN OF AJAX DEVELOPMENT CHARGES (AS OF SEPTEMBER 30, 2012) Single & Semi Detached Apartments 2 BR and Larger Residential Apartments Smaller than 2BR Other Dwellings Non-Residential per ft² of GFA Studies $128 $72 $46 $101 $0.07 Fire $447 $246 $162 $350 $0.24 Transportation $5,342 $2,943 $1,938 $4,178 $2.54 Operations $384 $211 $140 $300 $0.20 Parks $2,348 $1,294 $852 $1,837 $0.18 Recreation $2,803 $1,544 $1,017 $2,193 $0.21 Libraries $577 $318 $210 $451 $0.04 Total $12,029 $6,628 $4,365 $9,410 $ Redevelopment Credit A redevelopment allowance is applied against the development charge equivalent payable where a demolition permit has been issued within five years prior to the payment of the charges for a new development, provided the land was improved by occupied structures during that period. Similarly, a DC deduction is provided for non-residential to residential conversions and residential to non-residential conversions. (s.8) 2.6 Non-Statutory Exemptions H:\AJAX\DC \[Ajax DC Model 2012.xlsx]Table 2-1 The following discretionary exemptions are provided under By-law No , in addition to statutory exemptions: a non-residential farm building used for bona fide agricultural purposes (s.s.3(2)(b)); a place of worship and land used in connection therewith (s.s.3(2)(b)); a hospital (s.s.3(2)(b)); 50% of the development area of a nursing home (s.s.3(3)(d)); parking structures (s.s.3(3)(c)); temporary buildings without foundations that are erected for no more than six consecutive months or six months in one calendar year (s.s.3(3)(b)); additional provisions for development within community improvement project areas are discussed in the next section.

31 Community Improvement Project Areas a) The by-law provides for a full exemption from payment of DC s in the Downtown Community Improvement Project Area (see Map 2-1) for the following types of development: Office development consisting of two or more storeys; Commercial development provided that: o The commercial (retail/personal service) component is located in a nonresidential mixed-use building having two or more stories of offices, and the gross floor area (GFA) does not exceed the office component; or o The commercial development is located in a residential mixed-use building six storeys in height or greater, and the GFA does not exceed an amount equal to 30% of the total residential GFA; and Residential development equal to or greater than 90 units per hectare, calculated on a block-by-block basis. A 75% exemption applies to: Residential development equal to or greater than 25 units per hectare, but less than 90 units per hectare, calculated on a block-by-block basis, for those dwelling units for which underground parking is provided in a common area or areas. Finally a 50% exemption applies to: Residential development equal to or greater than 25 units per hectare, but less than 90 units per hectare, calculated on a block-by-block basis, for those dwelling units for which surface parking is provided. Within the proposed Pickering Village Community Improvement Project Area (Map 2-2), a full exemption is applicable to multi-storey, mixed used development provided that: 1) a minimum of fifty percent of the required parking spaces are provided underground and/or within an enclosed building, provided that in all instances, one hundred percent (100%) of the resident parking required for the personal use of residents within the building shall be provided underground and/or within an enclosed building; 2) the development consists of one or more storeys of commercial uses within a building, with the entire commercial area of the ground floor reserved for retail commercial and personal service uses (no offices), and residential uses occupying the whole of at least one upper storey, and numbering no less than six dwelling units; 3) the development is designed by a qualified architect with a demonstrated background in heritage communities and historic preservation;

32 4) a Heritage Impact Statement is submitted in the event that the subject lands and/or abutting lands are identified in the Town's Heritage Inventory as a designated or "wish list" property; 5) the development conforms to the Town of Ajax Official Plan, the Town's Urban Design and Built Form Guidelines for Pickering Village, dated March 2008, as well as all other applicable urban design guidelines approved by the Town; 6) any designated building located on-site is preserved and appropriately incorporated/integrated as part of the redevelopment; 7) any building located on-site that is identified as a "wish list" property in the Town's Heritage Inventory and is assessed by Planning staff as meriting preservation and/or replication is preserved/replicated in whole or in part and incorporated/integrated as part of the redevelopment; 8) architectural concrete block, tile, or vinyl or aluminum siding, are not employed as exposed exterior facade materials, unless approved by staff for limited application in the context of the subject project, 9) all types/styles of artificial stone veneers, precast panels, and roofing materials are approved by Town staff for use in the context of the particular project; 10) the owner agrees that the location and screening of all exterior HVAC mechanical components and any and all future HVAC system additions/ alterations to the exterior of the building shall be to the satisfaction of the Town; 11) the owner agrees that the size, dimensions, location, materials, and/or lighting of all on-site signage shall be approved by the Town; and, 12) through the site plan approval process, the owner undertakes to implement, with the consent of the abutting landowner(s), arrangements to the satisfaction of the Town for shared vehicular/pedestrian access and parking (including, but not necessarily limited to, the granting of easements, the reconfiguration of driveway aisles and parking spaces, and the stopping up of existing access locations) in instances where the subject lands are contiguous with one or more properties which can be functionally integrated for the purposes of shared parking and/or access. Alternatively, where the above is not possible at the time of redevelopment of the subject lands, the owner shall agree to support and assist the Town's efforts to implement and undertake arrangements necessary to accommodate shared vehicular/pedestrian access and parking in instances where the subject lands are contiguous with one or more properties which, in the opinion of the Town, can be functionally integrated for the purposes of shared parking and/or access. b) In addition, a partial exemption, in an amount equal to 50% of the Town's development charges is provided for all eligible multi-storey, mixed use development having more 2-4

33 than 50% of the total required parking located within outdoor, surface parking areas, provided that criteria 2) to 12), inclusive, noted in (a) above, are satisfied. 2-5

34 2-6 MAP 2-1 AREA BOUNDARIES FOR THE TOWN OF AJAX DOWNTOWN COMMUNITY IMPROVEMENT PROJECT AREA

35 2-7 MAP 2-2 AREA BOUNDARIES FOR THE TOWN OF AJAX PICKERING VILLAGE COMMUNITY IMPROVEMENT PROJECT AREA

36

37 3. ANTICIPATED DEVELOPMENT IN AJAX

38

39 ANTICIPATED DEVELOPMENT IN AJAX 3.1 Requirements of the Act Subsection 5(1) of the DCA sets out the method that must be used to determine development charges. The first step states that: The anticipated amount, type and location of development, for which development charges can be imposed, must be estimated. Steps 2 and 5 go on to refer to the increase in need for service attributable to the anticipated development... Thus, the estimate of anticipated development is an important starting point to the process. The requirement of the Act is for a development forecast, which refers to residential, commercial, industrial and institutional development. Such development generates increased service needs, via its occupancy and use, which is measured in terms of households, population, employment and visitors (tourists, customers, patrons and suppliers). This chapter therefore addresses both the anticipated increase in development and the users thereof. It covers all forms of development, whether or not they are included in the schedule of development charges, in order to avoid transferring the servicing cost responsibility of exempt development to non-exempt development. The Act requires that the amount, type and location of development be estimated. Timing is not referenced, other than indirectly, in section 8 para. 3 of O.Reg. 82/98, where capital costs to be incurred during the term of the proposed development charge by-law, must be set out. Also, s.s.5(1)4 of the Act restricts the estimate of the increase in the need for services other than water supply, waste water, storm water drainage and control, police and fire protection, to a maximum of 10 years following the preparation of the background study. Accordingly, this chapter addresses the anticipated timing of development. 3.2 Basis of Population, Household and Non-Residential Gross Floor Area Forecast The growth forecast summarized in this Chapter (with supplemental tables in Appendix A) provides the anticipated development for which the Town of Ajax will be required to provide services over a ten-year time horizon (mid-2013 to mid-2023) and an 18-year time horizon (mid to mid-2031). By 2031, the Town s population is forecast to increase by 17,573 persons (mid ), to a total population of 131, During this period, 9,390 new units are expected to be added to the housing supply. The detailed growth forecast is contained in Appendix A and is briefly summarized below: 1 Excluding the census undercount.

40 3-2 Year (mid) Population 1 114, ,983 Households 36,443 43, Net Increase 14,859 7, ,697 45, Net Increase 17,573 9,390 Year (mid) Employment 34,745 45,139 49,300 Non-Residential GFA (sq.ft.) Increase 10,394 7,031, Increase 14,555 10,131,176 1 Excludes the census undercount.

41 4. THE RESULTANT INCREASE IN THE NEED FOR SERVICE

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43 THE RESULTANT INCREASE IN THE NEED FOR SERVICE 4.1 Introduction This chapter addresses the requirements of s.s.5(1) of the DCA, 1997 with respect to the establishment of the estimated increased need for service attributable to the anticipated development, which underpins the development charge calculation. These requirements were detailed in Chapter Services Potentially Involved Table 4-1 lists the full range of municipal service categories that are eligible for inclusion in the DC calculation. A number of these services are referenced in s.s.2(4) of the DCA, 1997 as being ineligible services for inclusion in development charges. These are shown as ineligible on Table 4-1. In addition, two ineligible costs defined in s.s.5(3) of the DCA are computer equipment and rolling stock with an estimated useful life of (less than) seven years... Local storm water management and road works are generally recovered separately under subdivision agreements and related means (as are other local services). Services which are potentially eligible for inclusion by the Town are indicated with a and potential coverage by the Region of Durham s development charges by-law(s) are separately indicated. 4.3 The Increase in the Need for Service The development charge calculation commences with an estimate of the increase in the need for service attributable to the anticipated development, for the services to be covered by the bylaw. 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 (and s.3 of the associated regulation), which requires that Municipal 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 normally be applicable. Descriptive material for the capital requirements for each service addressed by the Background Study is provided in Appendix B. Appendix B sets out the mid-2013 to 2023 development-related capital program that is required to service the anticipated development for the ten-year period (with a mid-2013 to 2031 period for roads, bridges, sidewalks, multi-use paths, streetlighting and stormwater management). Local services, as discussed in Section 4.4 below, have been excluded from the program.

44 4-2 TABLE 4-1 CATEGORIES OF MUNICIPAL SERVICES TO BE ADDRESSED AS PART OF THE CALCULATION CATEGORIES OF MUNICIPAL SERVICES ELIGIBILITY FOR INCLUSION IN THE DC CALCULATION SERVICE COMPONENTS MAXIMUM POTENTIAL DC RECOVERY % 1. Services Related to a Highway /Regional /Dev. Agreements Dev. Agreements /Regional/Dev. Agreements / Dev. Agreements / Dev. Agreements 1.1 Arterial roads 1.2 Collector roads 1.3 Local roads 1.4 Traffic signals 1.5 Sidewalks and streetlights 1.6 Cycling infrastructure Other Transportation Services Regional Regional n/a n/a 2.1 Transit vehicles 2.2 Other transit infrastructure 2.3 Municipal parking spaces - indoor 2.4 Municipal parking spaces - outdoor 2.5 Works Yards 2.6 Rolling stock Ferries 2.8 Airport facilities Storm Water Drainage and Control Services /Dev. Agreements Dev. Agreements /Dev. Agreements 3.1 Main channels and drainage trunks 3.2 Channel connections 3.3 Retention/detention ponds Fire Protection Services 4.1 Fire stations 4.2 Fire pumpers, aerials and rescue vehicles 4.3 Small equipment and gear Outdoor Recreation Services (i.e. Parks and Open Space) Ineligible 5.1 Acquisition of land for parks, woodlots and ESAs 5.2 Development of local 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 stock 1 and yards Indoor Recreation Services 6.1 Arenas, indoor pools, fitness facilities, community centres, etc. (including land) 6.2 Recreation vehicles and equipment Library Services 7.1 Public library space (incl. furniture and equipment) 7.2 Library materials Electrical Power Services Ineligible Ineligible Ineligible 8.1 Electrical substations 8.2 Electrical distribution system 8.3 Electrical system rolling stock with 7+ year life time signifies that the service component is DC eligible for the municipality computer equipment excluded throughout

45 4-3 CATEGORIES OF MUNICIPAL SERVICES ELIGIBILITY FOR INCLUSION IN THE DC CALCULATION SERVICE COMPONENTS MAXIMUM POTENTIAL DC RECOVERY % 9. Provision of Cultural, Entertainment 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 Waste Water Services Region Region Region/Dev. Agreements Region 10.1Treatment plants 10.2Sewage trunks 10.3Local systems 10.4Vehicles and equipment Water Supply Services Region Region Region/Dev. Agreements 11.1Treatment plants 11.2Distribution systems 11.3Local systems Waste Management Services Ineligible Ineligible Ineligible 12.1Collection, transfer vehicles and equipment 12.2Landfills and other disposal facilities 12.3Other waste diversion facilities Police Services Region Region Region 13.1Police detachments 13.2Police rolling stock Small equipment and gear Homes for the Aged Region 14.1Homes for the aged space Day Care Region 15.1Day care space Health Region 16.1Health department space Social Services Region 17.1Social service space Ambulance Region Region 18.1Ambulance station space Vehicles Hospital Provision Ineligible 19.1Hospital capital contributions 20. Provision of Headquarters for the General Administration of Municipalities and Local Boards Ineligible Eligible Ineligible 20.1Office space and furniture (HQ Gen. Admin. services) 20.2 Non-administrative office space and furniture 20.3 Computer equipment Other Services 21.1Studies 2 in connection with acquiring buildings, rolling stock, materials and equipment, and improving land and facilities, including the DC background study cost 21.2Interest on money borrowed to pay for growth-related capital except where a 7+ year life is involved 2 generally reflects same percentage as for the service component to which it pertains

46 Local Service Policy The Town s general policy regarding the delineation of local services to be funded through development charges versus local services to be emplaced as a condition of development agreement, is summarized in Appendix B under each individual service component. 4.5 Credits Carried Forward 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 development charges. As a result, this provision is made in the calculation, in order to avoid a funding shortfall with respect to future service needs. The outstanding credit for Williamson Drive over Carruthers Creek has been included in the DC calculation for roads. 4.6 Eligible Debt and Committed Excess Capacity Section 66 of the DCA, 1997 states that, for the purposes of developing a development charge 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. 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, Town Council must have expressed a clear intention that it would be paid for by development charges or other similar charges. For example, this may have been done as part of previous development charge processes. This inclusion is referenced as Box 12 in Figure 1-2 ( Unfunded Works ) and includes internal borrowing or long term debt. The DC recoverable share for the outstanding debt for the Fire Headquarters and the Main Library Branch have been included in the DC calculations in Appendix B. 4.7 Council s Assurance In order for an increase in need for service to be included in the DC calculation, Town 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 is subject to Council s approval as part of the DC by-law adoption process.

47 5. DCA CALCULATION REQUIREMENTS

48

49 DCA CALCULATION REQUIREMENTS 5.1 Introduction Subsection 5(1) of the DCA sets out the method that must be used to determine development charges. This method specifically calls for five different types of deductions to be made from municipal servicing costs, where applicable, which relate to the need for service attributable to new development anticipated over the planning period. These are: level of service cap; uncommitted excess capacity; benefit to existing development; grants, subsidies and other contributions; the 10% statutory deduction for soft services Three other calculation deductions are addressed herein as being implicit requirements. These are: post-period capacity; uncommitted DC reserve fund balances; allocation of the total costs between residential and non-residential benefit. The basis for, and nature of, each of these DC calculation deductions is outlined below and in Appendix B. 5.2 Level of Service Cap Paragraph 4 of subsection 5(1) of the DCA, 1997 states that the estimate of the increase in the need for service attributable to the anticipated development, made under paragraph 2 must not include an increase that would result in the level of service exceeding the average level provided in the Town over the 10 year period preceding the preparation of the background study. s.s.4(3) of O.Reg. 82/98 provides for an exception, such that: If the average level of service determined is lower than the standard level of service required under another Act, the standard level of service required under the other Act may be deemed... to be the average level of service. Section 4 of the Regulation also provides that: both the quantity and quality of a service shall be taken into account in determining the average level of service. A commonly-used quantity measure is units per capita (e.g. lane kms, square feet, m 3 capacity, hectares, etc.), while quality is to be measured in terms of replacement cost per unit.

50 Uncommitted Excess Capacity Paragraph 5 of s.s.5(1) of the DCA 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, i.e. where Council has indicated a clear intention that it would be paid for by DCs or other similar charges, before or at the time the capacity was created (s.5 of O.Reg. 82/98). Excess capacity is undefined in the Act, but in this case must be able to meet some or all of the increase in need for service, in order to potentially represent a deduction. The deduction of excess capacity from the future increase in the need for service, occurs as part of the conceptual planning and feasibility work associated with justifying and sizing new facilities, e.g. if a road widening to accommodate increased traffic is not required because sufficient capacity is already available, then that widening would not be included as an increase in need, in the first instance. Another potential consideration is the relationship between the 2013 level of service and the ten year historical average and/or an operational review of the capacity functioning of a particular facility. This requirement was addressed as part of the process of establishing the capital program in Appendix B. 5.4 Benefit to Existing Development Benefit to existing development deductions have been addressed on a service-specific and project-specific basis. The methodology employed is briefly summarized in Figure 5-1 and discussed in Appendix B. The primary considerations involved in establishing an appropriate benefit to existing development deduction include: Is the project a capacity expansion, necessary to maintain the existing average level of municipal service? Is the primary service area municipal-wide or more narrowly defined? Was the project included in previous DC studies and with what level of deduction? Is the capital program well beyond the service level cap and to what extent do these projects benefit existing development (rather than representing oversizing for post period recovery)? Does the capital expenditure simply represent more of what is already being provided or does it instead offer a broader range of service? What is the estimated value of the service change being provided re user proximity, for example? Does the project involve a new facility or an existing replacement plus expansion? This requirement was addressed on a service-specific basis in Appendix B.

51 5-3

52 Grants, Subsidies and Other Contributions s.s.5(1)7 of the DCA requires that the capital costs must be reduced by the reductions set out in subsection (2). s.s.5(2) states that: The capital costs, determined under para. 7 of subsection (1), must be reduced, in accordance with the regulations, to adjust for capital grants, subsidies and other contributions made to a municipality or that the Council of the municipality anticipates will be made in respect of the capital costs. (underlining added) Section 6 of O.Reg. 82/98 indicates that any such grant, subsidy or other contribution (including developer contributions) must be used to reduce the s.s.5(1)7 capital costs in the same proportion as the increase in need was reduced under s.s.5(1), para. 6, unless at the time it was made, the person making it expressed a clear intention that all or part be used to benefit existing or new development. In the latter case, a deduction to capital costs must be made, but only to the extent that the funds were intended to benefit new development. Any grants, subsidies, developer and other contributions anticipated have been reflected in Appendix B, in accordance with the provisions of the Act and Regulation. This requirement was addressed on a service-specific basis in Appendix B. 5.6 Post-period Capacity This is a term and a concept which is not specifically referenced in the DCA. It refers the cost of oversized development-related servicing capacity which is not required by development anticipated over the Town s planning period, which will clearly benefit development in a subsequent planning period and should therefore be (partially) funded by such subsequent development. This requirement is implicit in s.s.5(1)2 of the DCA, which requires the charge to be based on the increase in the need for service attributable to the anticipated development. The need for any such deduction can be avoided by addressing the needs of a Buildout scenario in the case of the hard services and by simply maintaining per capita service levels in the case of other services. Otherwise a post period capacity deduction may be applicable in the case of specific road works which are not operating at standard capacity utilization levels by the end of the planning period and have been specifically oversized. This requirement was addressed on a service-specific basis in Appendix B with reference to the fact that the Town is approaching full build-out. 5.7 DC Reserve Fund Balances There is no explicit requirement under the DCA calculation method set out in s.s.5(1) to account for the outstanding reserve fund balance as part of making a DC calculation; however, s.35 does restrict the way in which the funds are used in future, i.e. 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).

53 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 growth which occurred earlier in the by-law period). This cost component is distinct from the development-related costs for the next 10 year period, which underlie the DC calculation herein. The alternative would involve the municipality seeking to spend all reserve fund monies prior to renewing each by-law, which would often not be a sound basis for capital budgeting. Thus, the Town will use these soft service reserve funds for the Town s cost share of applicable development-related projects, which are required, but have not yet been undertaken (i.e. the cost of beyond the service level cap and benefit to existing development). This is a way of directing the funds to the project cost share for which they were collected (rather than largely to the benefit of future development, which will continue to generate the need for additional facilities and development charges, directly proportionate to the amount of growth involved). As a result, the uncommitted balance of the Town s DC reserve fund (as of the end of 2012) for hard services and growth studies, have been applied against future spending requirements. These amounts have been accounted for in making the calculations in Appendix C. These deductions are made in the case of hard services (inclusive of studies which is not subject to a per capita service level), in that the DC calculation for these services is geared to funding a large group of development-related works that are being implemented in response to the needs of growth over the long term. While these works are also subject to service level caps, each DC calculation is designed to fund an appropriate share of the overall program of works, over a long term period. Thus, the renewal process involves updating cost estimates and project descriptions, removing completed works and netting reserve fund balances, each time a new hard service DC is calculated. Reserve fund applications are addressed in Appendix C. 5.8 Other Deductions Paragraph 8 of s.s.5(1) of the DCA requires that, the capital costs must be reduced by 10 per cent. This paragraph does not apply to water supply services, waste water services, storm water drainage and control services, services related to a highway and to police and fire protection services. The Town services that the 10% reduction does apply to are parks and recreation, library, operations, applicable growth studies and any related financing costs pertaining to these services. The 10% is to be netted from the capital costs necessary to provide the increased services, once the other deductions (i.e. ineligible, benefit to existing, landowner contributions, etc.) have been made. This requirement was addressed on a service-specific basis in Appendix B. 5-5

54 Cost Differentiation by Type of Development s.s.5(6)2 of the DCA requires that every type of development that is expressly identified in the DC by-law cannot be required to pay development charges that exceed the capital costs arising from the increase in the need for service attributable to that particular type of development. In the first instance, this allocation involves a split between residential and non-residential benefit. This is typically made based on the ratio of incremental growth in population to the total increment in population and employment, except in the case of parks, recreation and libraries where only a nominal non-residential cost share is involved Area-specific Charges As with most local municipalities, the Town has not established area-specific charges and only makes use of average Town-wide charges. In part, this reflects the difficulty involved in attributing benefits derived from various municipal facilities on a clear geographic basis. In many cases, facility service areas tend to overlap, to vary over time and to be indistinct. The exception to this approach relates to the conditional development charge exemptions which relate to the Town s two Community Improvement Project Areas. These exemptions vary in coverage and are subject to a number of conditions, including development type, size, height, density, heritage design, etc. Development expected to occur in these areas has been included in the denominator of the development charge calculation, which produces a gap in growthrelated funding coverage as a result of the exemptions. In addition, growth-related works required primarily as a result of such development will not receive (full) development charge funding.

55 6. DEVELOPMENT CHARGE RULES

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57 DEVELOPMENT CHARGE RULES 6.1 Introduction s.s.5(1)9 of the DCA 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 development charges s.s.5(6) establishes the following restrictions on the rules: the total of all DCs 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 DCs 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. In order to address this requirement, the following conventions have been adopted: 1. Costs to residential uses have been assigned to different types of residential units based on the average occupancy for each housing type constructed during the first 20 years of occupancy. 2. Costs are allocated to residential uses (as opposed to non-residential uses) based upon a number of factors, as may be suited to each service-related circumstance and as outlined in Appendix B. if the rules provide for a type of development to have a lower development charge than is allowed, the rules for determining development charges may not provide for any resulting shortfall to be made up via other development With respect to the rules, Section 6 of the DCA states that a DC 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. 6.2 The Amount of the Development Charge Payable in Any Particular Case The rules for determining if development charges are payable in any particular case and for determining the amount of the development charges involved, are set out in the proposed by-law in Appendix F.

58 6.2.2 The quantum of the development charge which is payable, is as calculated in Appendices B and C and summarized in the Executive Summary and Schedule B of the proposed by-law The rules for determining if development charges are payable in any particular case, are addressed in the by-law and Background Study and deal with matters such as: multiple charges, the connection between servicing needs and development, the list of services for which charges are being imposed, types of development approval triggering the need for the imposition of development charges, the requirements for the installation of local services in addition to payment of the development charge, the method used in calculating development charges for individual developments, the quantum of the charge, the timing of calculation and payment, and the alternative means of payment. 6.3 Development Charge Exemptions The rules for exemptions, relief and adjustments for the charge are as set out in the proposed by-law in Appendix F. 6.4 Phasing-in of Development Charges Any rules with respect to any phasing-in of the development charges are as set out in the proposed by-law in Appendix F. 6.5 Indexing of Development Charges The rules with respect to the indexing of the development charges are as set out in the proposed by-law in Appendix F, that is, that the charges shall be adjusted annually, as of July 1 each year, commencing July 1, 2014 in accordance with the Statistics Canada Quarterly, Construction Price Statistics (catalogue number ). This is a minor shift from the Town s current policy in order to reflect mid-year pricing estimates and to co-ordinate with the indexing date for the Regional DC. The 2013 indexing has been addressed as part of recalculating the development charge. 6.6 The Application of Development Charges to Redevelopment The rules with respect to redevelopment are as set out in the proposed by-law in Appendix F. Those DC reduction provisions reflect the Town s existing policy. This policy provides a demolition and/or conversion credit formula in the circumstance where a building permit is issued within five years from the date the associated demolition permit has been issued. 6-2

59 7. BY-LAW ADOPTION AND IMPLEMENTATION

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61 BY-LAW ADOPTION AND IMPLEMENTATION 7.1 Introduction This Chapter outlines the process that the Town has carried out as part of arriving at development charge policy which is fair and legally defensible, financially appropriate, and has had regard for public comments and possible development implications. 7.2 Long Term Capital and Operating Cost Examination Subsection 10(2)(c) of the Act requires that a DC Background Study include 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. One standard that could be used in scrutinizing the above-referenced costs is the current level of operating costs per capita. Another more detailed standard that goes beyond the specific requirements of the Act, would be the anticipated impact on tax and user rate levels, as determined by the application of a full fiscal impact model. The revenue to be generated by the DC by-law during its life of up to five years, will be determined by the quantum of the charge, the amount and type of development occurring and the impact of the rules regarding exemptions, phasing in, indexing, land redevelopment, etc. The net stream of revenue which results, in concert with Town policy with respect to frontending agreements and long term debt, will determine the rate at which the Town is able to construct the works which underlie the development charge. Consideration of these revenue streams would normally occur as part of the Town s annual Capital Budget and Forecasting process. Appendix D contains the Long Range Capital and Operating Cost examination applicable in this case. 7.3 Consultation In addition to the statutory public meeting, consultation meetings with the development community were held in January and April to review the proposed capital program, growth forecast and calculation assumptions, as well as the emerging charge. 7.4 The By-law Adoption Process Public Meeting of Council Section 12 of the DCA, 1997 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 two weeks prior to the (first) meeting.

62 Any person who attends such a meeting may make representations related to the proposed bylaw. If a proposed by-law is changed following such a meeting, the 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, the 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 OMB. 7.5 By-law Implementation 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. 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 requirements in each case Notice of Passage In accordance with s.13 of the DCA, when a DC by-law is passed, the municipal 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 not 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: 7-2 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. s.s.10(5) lists the eight items which the notice must cover By-law Pamphlet In addition to the notice information, the municipality 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.

63 Where a by-law is not appealed to the OMB, 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 Appeals Sections of the DCA, 1997 set out requirements relative to making and processing of a DC by-law appeal and OMB Hearing in response to an appeal. Any person or organization may appeal a DC by-law to the OMB by filing with the municipal clerk a notice of appeal, 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 Complaints A person required to pay a development charge, or his agent, may complain to the Town Council imposing the charge that: 7-3 the amount of the charge was incorrectly determined; the credit to be used against the development charge was incorrectly determined; or there was an error in the application of the development charge. Sections of the DCA, 1997 set out the requirements that exist, including the fact that a complaint may not be made later than 90 days after a DC (or any part of it) is payable. A complainant may appeal the decision of Municipal Council to the OMB 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 municipality to which the DC 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. Front end financing arrangements with Ajax landowners have been discussed in general terms and are expected to be considered in greater detail subsequently, once more detailed development, project timing and cost information is available. Part III of the DCA, 1997 (Sections 44-57) addresses front-ending agreements and removes some of the obstacles to their use, which were contained in the DCA, Accordingly, the Town assesses whether this mechanism is appropriate for its use, as part of funding projects prior to Town funds being available Severance and Subdivision Agreement Conditions Section 59 of the DCA, 1997 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:

64 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; 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 DCA, 1997 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. 7-4

65 APPENDIX A ANTICIPATED DEVELOPMENT IN AJAX

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67 A-1 APPENDIX A - ANTICIPATED DEVELOPMENT IN AJAX Appendix A provides the growth forecast of the anticipated development for which the Town of Ajax will be required to provide services for over a 10-year (mid 2013-mid 2023) and 18-year (mid 2013-mid 2031) time horizon. The population and employment forecast which has been prepared herein is derived from the Province s October 27, 2010 ROPA 128 approval (Table 1) which is under appeal. Ajax Urban Population Rural Population TABLE 1 POPULATION, HOUSEHOLD AND EMPLOYMENT FORECAST AS PER PROVINCE S ROPA 128 APPROVAL (UNDER APPEAL) POPULATION, HOUSEHOLDS AND EMPLOYMENT Year , , , , , Total Population (includes 111, , , , ,670 undercount) Households 34,490 40,090 42,885 44,610 45,835 Employment 34,810 40,665 46,115 48,575 49,290 A.1 Basis of Population, Household and Non-Residential Gross Floor Area Forecast In compiling the growth forecast for Ajax the following reports were consulted: Town of Ajax Development Charge Background Study For Town-Wide Development Charge By-law,, June 2, 2008; Town of Ajax Employment Report, Recommended Report, June 15, 2009; Growing Durham Recommended Growth Scenarios and Policy Directions, Final Report, November 18, 2008; Town of Ajax, Official Plan Amendment No. 41, 2012; Province s ROPA 128 Approval, October 27, 2010.

68 In addition to reviewing the above-mentioned documents, the following key indicators were also considered in generating the population, household and non-residential forecast; 1996, 2001, 2006 and available 2011 Census data; 1 historical residential and non-residential building permit activity; proposed residential units in the development approvals process by dwelling type and location; and 1996, 2001 and 2006 Census employment data. A.2 Summary of Growth Forecast The discussion provided herein, summarizes the anticipated growth for Ajax and describes the basis for the forecast. The result of the growth forecast analysis is summarized in Schedule 1. The population is anticipated to reach 128,983 by mid 2023 and 131,697 by mid 2031 (which is 134,860 and 137,700, respectively, including the undercount estimated at 4.55%). This results in an increase of 14,859 persons over the 10-year period and 17,573 over the 18-year period. 1. Unit Mix (Schedules 1 and 2) A-2 The unit mix for Ajax was derived from historical development activity, units in the development approvals process (as per Schedule 5), as well as discussions with staff, regarding anticipated development trends for the Town. Based on the above indicators, the long-term growth forecast is premised upon a unit mix of 24% low density (single family and semi-detached), 16% medium density (multiples except apartments) and 60% high density (apartments). This allocation varies slightly from the allocation from Growing Durham, in that the current inventory of housing identifies more low density dwellings. The increase in low density dwellings is offset by a decrease in medium density dwellings, and does not significantly change the long-term weighted density of approximately 60 units per net hectare. 2. Geographic Location (Schedule 5 and Map A-1) Appendix A, Schedule 5 summarizes the supply of future housing within Ajax, which are either pending, draft approved and registered units, as well as approved and pending site plans. In terms of the geographic location (Map A-1) of the residential inventory for new development, 59% of the supply is located within Areas 1, 2, and 4, 20% is located in the Southwest (Area 6), and the remaining 21% is located within Areas 3, 5, 7, 8, and Rural Ajax. 3. Planning Period Short and longer-term time horizons are required for the DC process. The DCA limits the planning horizon for certain services, such as parks, recreation and 1 The 2011 Census regarding total population and total number of occupied private dwellings by structural type of dwelling has been incorporated into the 2013 DC growth forecast.

69 A-3 libraries, to a 10-year planning horizon. Roads and related services and stormwater management are able to utilize a longer planning period. 4. Population in New Units (Schedules 2, 3 and 4) The number of housing units to be constructed in Ajax during the short, medium and long term period is presented on Schedule 1 (average of approximately 521 units per annum over the 18- year time horizon). 1 As well, this schedule graphically illustrates the forecast unit development for the 18-year forecast period in comparison to building activity over the past 10 years. Population in new units is derived from Schedules 2, 3 and 4, which incorporate historical development activity, anticipated units (see unit mix discussion), and 1996, 2001 and 2006 Census data. Schedule 7 summarizes the PPU for the new housing units by age and type of dwelling based on 2006 custom census data. The 20-year average PPU s used in the forecast are: Low-density: 3.72 Medium-density: 2.91 High-density: Existing Units and Population Change (Schedules 2, 3 and 4) Existing households for mid 2013 are based on the 2011 Census households, plus estimated residential units constructed between mid 2011 and mid 2013 assuming a lag between construction and occupancy. The decline in average occupancy levels for existing housing units is calculated in Schedules 2, 3 and 4, by aging the existing population over the forecast period. 6. Employment (Schedules 9, 10, and 11) Employment projections are derived from the Town of Ajax s Employment Recommended Report, June 15, 2009, which is largely based on the activity rate method of forecasting, which is defined as the number of jobs in Ajax divided by the number of residents. Key employment sectors include primary, industrial, commercial, institutional, and work at home, which are considered individually below employment data for the Town is outlined in Schedule 9. The 2006 total employment is broken out by the following sectors: o 150 primary (0.5%); o 2,600 work at home employment (8.6%). 1 The unit forecast contained herein is consistent with the ROPA 128 household total as opposed to the residential unit total from OPA 41 (i.e. OPA 41 refers to dwelling units, some of which contain multiple households).

70 A-4 o 8,120 industrial (26.9%); o 10,040 commercial/population-related (33.2%); o 5,030 institutional (16.7%); o 4,270 no fixed place of work 1 (14.1%). This provides a total employment (including NFPOW and work at home) figure of 30,210 based on the Town s 2007 Employment Survey. Additional details regarding historical employment trends by sub-sector based on the 2006 Census are summarized in Schedule 11. Total employment for the Town is anticipated to reach approximately 45,139 by mid 2023 and 49,300 by mid The employment increase for the 10-year period is 10,394 and 14,555 for the 18-year period. 7. Non-Residential Sq. Ft. Estimates (Gross Floor Area (GFA), Schedule 9) Square footage estimates were calculated in Schedule 9 based on the following employee density assumptions; O 950 sq. ft. per employee for industrial; O 500 sq. ft. per employee for commercial/population-related; and O 700 sq. ft. per employee for institutional. The incremental Gross Floor Area (GFA) increase for the Town is approximately 7,031,526 sq. ft. over the 10-year projection period and 10,131,176 over the 18- year projection period. The 18-year forecast incremental GFA by sector is as follows: o industrial 71.9%; o commercial/population-related 20.6%; and o institutional 7.5%. 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.

71 A-5 Year Singles & Semi- Detached Multiple Dwellings 2 Apartments3 Other Total Households Person Per Unit (PPU) Mid ,430 67,370 14,915 2,290 3, , Mid ,753 77,120 17,345 2,720 3, , Mid ,167 94,280 21,040 4,255 3, , Mid , ,600 25,110 6,345 3, , Mid , ,330 25,972 6,832 3, , Mid , ,860 28,232 8,222 7, , Mid , ,700 28,272 8,322 9, , Mid Mid ,080 7,400 14,915 2,290 3, ,375 Mid Mid ,323 9,750 2, ,795 Mid Mid ,414 17,160 3,695 1, ,435 Mid Mid ,433 20,320 4,070 2, ,430 Mid Mid ,524 4, ,408 Mid Mid ,859 15,530 2,260 1,390 3, ,480 Mid Mid ,573 18,370 2,300 1,490 5, ,390 Source:, October, Derived from Growing Durham Recommended Growth Scenarios and Policy Directions, Final Report, November 18, Census Undercount estimated at approximately 4.56%. Note: Population Including the Undercount has been rounded. 2. Includes townhomes and apartments in duplexes. Population (Excluding Census Undercount) 3. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. SCHEDULE 1 TOWN OF AJAX RESIDENTIAL GROWTH FORECAST SUMMARY Population (Including Census Undercount)¹ Housing Units 2,500 FIGURE A HOUSING FORECAST¹ 2,000 1,963 1,872 Housing Units 1,500 1, ,476 1, , Years Historical Low Density Medium Density High Density Historical Average Source: Historical housing activity ( est.) based on Statistics Canada building permits, Catalogue XIB 1. Growth Forecast represents start year. Source: Historical housing activity ( ) based on CMHC Completions data less Statistics Canada Demolitions ( ). Source: Historical housing activity ( ) based on Statistics Canada building permits, Catalogue XIB

72 A-6 SCHEDULE 2 TOWN OF AJAX CURRENT YEAR GROWTH FORECAST MID 2011 TO MID 2013 POPULATION Mid 2011 Population 109,600 Occupants of Units (2) 1,408 New Housing Units, multiplied by persons per unit (3) 3.36 Mid 2011 to Mid 2013 gross population increase 4,726 4,726 Decline in Housing Units (4) 35,035 Unit Occupancy, multiplied by ppu decline rate (5) Mid 2011 to Mid 2013 total decline in population Population Estimate to Mid ,124 Net Population Increase, Mid 2011 to Mid ,524 (1) 2011 population based on StatsCan Census unadjusted for Census Undercount. (2) Estimated residential units constructed, Mid 2011 to the beginning of the growth period, assuming a six month 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 % 2.28 Multiples (6) % 1.01 Apartments (7) % 0.08 Total 100% 3.36 ¹ Based on 2006 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.

73 A-7 SCHEDULE 3 TOWN OF AJAX TEN YEAR GROWTH FORECAST MID 2013 TO MID 2023 POPULATION Mid 2013 Population 114,124 Occupants of Units (2) 7,480 New Housing Units, multiplied by persons per unit (3) 2.58 Mid 2013 to Mid 2023 gross population increase 19,318 19,318 Decline in Housing Units (4) 36,443 Unit Occupancy, multiplied by ppu decline rate (5) Mid 2013 to Mid 2023 total decline in population -4,459-4,459 Population Estimate to Mid ,983 Net Population Increase, Mid 2013 to Mid ,859 (1) Mid 2013 Population based on: 2011 Population (109,600) + Mid 2011 to Mid 2013 estimated housing units to beginning of forecast period (1,408 x 3.36 = 4,726) + (35,035 x = -202) = 114,124 (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 % 1.12 Multiples (6) % 0.54 Apartments (7) % 0.92 one bedroom or less 1.26 two bedrooms or more 2.09 Total 100% 2.58 ¹ Persons per unit based on adjusted Statistics Canada Custom 2006 Census database. ² Forecast unit mix based upon historical trends and housing units in the development process. (4) Mid 2013 households based upon 35,035 (2011 Census) + 1,408 (Mid 2011 to Mid 2013 unit estimate) = 36,443 (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.

74 A-8 SCHEDULE 4 TOWN OF AJAX 18 - YEAR GROWTH FORECAST MID 2013 TO MID 2031 POPULATION Mid 2013 Population 114,124 Occupants of Units (2) 9,390 New Housing Units, multiplied by persons per unit (3) 2.44 Mid 2013 to Mid 2031 gross population increase 22,935 22,935 Decline in Housing Units (4) 36,443 Unit Occupancy, multiplied by ppu decline rate (5) Mid 2013 to Mid 2031 total decline in population -5,361-5,361 Population Estimate to Mid ,697 Net Population Increase, Mid 2013 to Mid ,573 (1) Mid 2013 Population based on: 2011 Population (109,600) + Mid 2011 to Mid 2013 estimated housing units to beginning of forecast period (1,408 x 3.36 = 4,726) + (35,035 x = -202) = 114,124 (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 % 0.91 Multiples (6) % 0.46 Apartments (7) % 1.07 one bedroom or less 1.26 two bedrooms or more 2.09 Total 100% 2.44 ¹ Persons per unit based on adjusted Statistics Canada Custom 2006 Census database. ² Forecast unit mix based upon historical trends and housing units in the development process. (4) Mid 2013 households based upon 35,035 (2011 Census) + 1,408 (Mid 2011 to Mid 2013 unit estimate) = 36,443 (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.

75 A-9 SCHEDULE 5 TOWN OF AJAX SUMMARY OF UNITS IN THE DEVELOPMENT PROCESS AS OF JUNE, Development Location Singles & Semi- Detached Density Type Multiples 2 Apartments 3 Total AREA ,881 AREA 2 1, ,120 AREA AREA ,720 3,342 AREA AREA ,288 2,548 AREA ,006 AREA RURAL Total (as of June 2010) 3,968 2,490 5,997 12,455 % Breakdown 32% 20% 48% 100% BP's since ,659 1,000 2,659 Estimated Total (as of end 2012) 2,309 1,490 5,997 9,796 Town of Ajax Planning Department, July All of the units listed are either pending, draft approved and registered units, as well as approved and pending site plans. 2. Includes townhomes and apartments in duplexes. 3. Includes bachelor, 1 bedroom and 2 bedroom+ apartments.

76 A-10 MAP A-1 TOWN OF AJAX LOCATION OF RESIDENTIAL DEVELOPMENT Source: Town of Ajax, Planning Department

77 A-11 SCHEDULE 6 TOWN OF AJAX HISTORICAL RESIDENTIAL BUILDING PERMITS YEARS RESIDENTIAL BUILDING PERMITS Year Singles & Semi Detached Multiples 1 Apartments 2 Total , , , , , , , , ,872 Sub-total 5,791 1, ,711 Average ( ) 1, ,542 % Breakdown 75.1% 21.6% 3.3% 100.0% Sub-total 2,553 1, ,988 Average ( ) % Breakdown 64.0% 28.3% 7.7% 100.0% Total 8,344 2, ,699 Average ,170 % Breakdown 71.3% 23.9% 4.8% 100.0% Sources: Building Permits - Statistics Canada Publication, XIB 1. Includes townhomes and apartments in duplexes. 2. Includes bachelor, 1 bedroom and 2 bedroom+ apartments.

78 A-12 SCHEDULE 7 TOWN OF AJAX PERSONS PER UNIT BY AGE AND TYPE OF DWELLING (2006 CENSUS) Age of SINGLES AND SEMI-DETACHED Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 20 Year Average Total Age of MULTIPLES 2 Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 20 Year Average Total Age of APARTMENTS 3 Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 20 Year Average Total Age of ALL DENSITY TYPES Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total Total 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 2. Includes townhomes and apartments in duplexes. 3. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. 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

79 A-13 SCHEDULE 8 TOWN OF AJAX PERSONS PER UNIT BY STRUCTURAL TYPE AND AGE OF DWELLING (2006 CENSUS) Persons Per Dwelling Age of Dwelling Singles and Semi-Detached Multiples Apartments

80 A-14 Period Population , ,600 8,120 10,040 5,030 25,940 4,270 30,210 Mid , ,206 8,543 11,713 6,748 30,370 4,375 34,745 8,116,253 5,856,468 4,723,603 18,696,324 Mid , ,085 13,421 15,201 7,682 40,549 4,590 45,139 12,749,950 7,600,500 5,377,400 25,727,850 Mid , ,500 16,210 15,880 7,840 44,590 4,710 49,300 15,399,500 7,940,000 5,488,000 28,827, Mid , ,673 1,718 4, ,535 Mid Mid , ,878 3, , ,394 4,633,697 1,744, ,797 7,031,526 Mid Mid , ,294 7,667 4,167 1,092 14, ,555 7,283,247 2,083, ,397 10,131, Mid , Mid Mid , , , , ,403 65, ,153 Mid Mid , ,177 38, ,559 Source:, October, Derived from Town of Ajax Employment Recommended Report, June 15, based on 2007 Employment Survey. 2. Square Foot Per Employee Assumptions Industrial 950 Commercial/ Population Rela 500 Institutional 700 Primary Work at Home Activity Rate Industrial Commercial/ Population Related SCHEDULE 9 TOWN OF AJAX EMPLOYMENT AND GROSS FLOOR AREA (GFA) FORECAST, 2013 TO 2031 Incremental Change Annual Average Employment Commercial/ Work at Total Institutional Total Primary Industrial Population Institutional NFPOW Total Home excl NFPOW Related Gross Floor Area in Square Feet (Estimated) 2 Industrial Commercial/ Population Related Institutional Total

81 A-15 SCHEDULE 10 TOWN OF AJAX NON-RESIDENTIAL CONSTRUCTION VALUE YEARS (000's 2012 $) YEAR Industrial Commercial Institutional Total ,893 5,355 31,818 42,066 Sub-total Average 6,026 3,013 21,223 10,611 42,783 21, ,897 52,299 New Improve Additions Total New Improve Additions Total New Improve Additions Total New Improve Additions Total ,110 11,135 3, , ,953 28,804 33,184 12,169 8,350 28,804 49, ,756 7, ,793 16, ,043 19,417 8, , ,239 4,420 4, ,160 8, ,660 13,382 5, , ,228 1, ,712 54,723 2, ,662 11, ,905 15,256 68,433 5,291 2,905 76, ,181 10, ,608 9, , ,160 11, , ,231 2,281 24,925 4, , ,219 63,143 25,458 5,901 63,450 94, , ,521 28,018 4,956 1,485 34,460 25, ,709 54,600 7,604 1,485 63, , ,799 22,790 9,099 2,185 34, ,010 4,760 6,150 43,923 10,156 6,945 61, , ,000 12,570 11,455 35,835 59, ,401 1,854 3,431 14,454 13,148 37,690 65, Subtotal 27,221 6,541 1,231 34, ,519 59,475 40, ,032 73,256 9, , , ,996 76, , ,814 Percent of Total 78% 19% 4% 100% 74% 15% 10% 100% 40% 5% 55% 100% 64% 13% 23% 100% Average 3, ,888 31,947 6,608 4,449 43,004 8,140 1,110 11,171 20,421 43,111 8,445 15,757 67, Year Total 39, , , , Year Average 3,989 39,239 21,561 60,581 % Breakdown 6.6% 64.8% 35.6% 100.0% SOURCE: STATISTICS CANADA PUBLICATION, XIB Note: Inflated to year-end 2011 (January, 2012) dollars using Reed Construction Cost Index

82 A-16 SCHEDULE 11 TOWN OF AJAX EMPLOYMENT TO POPULATION RATIO BY MAJOR EMPLOYMENT SECTOR, 1991 TO 2006 Year Change Comments Employment by industry 1.0 Primary Industry Employment Categories which relate to 1.1 All primary local land-based resources. Sub-total Industrial and Other Employment 2.1 Manufacturing 5,180 5,225 5,560 3, ,635 Categories which relate 2.2 Wholesale trade , primarily to industrial land 2.3 Construction 1, supply and demand. 2.4 Transportation, storage, communication and other utility 1, ,385 1, Sub-total 7,941 7,360 8,695 7, ,335-1, Population Related Employment 3.1 Retail trade 2,355 2,425 3,595 4, , Categories which relate 3.2 Finance, insurance, real estate operator and insurance agent ,035 1, primarily to population 3.3 Business service 685 1,190 1,710 2, growth within the 3.4 Accommodation, food and beverage and other service 1,574 2,195 2,985 3, municipality. Sub-total 5,499 6,690 9,325 11,480 1,191 2,635 2, Institutional 4.1 Government Service Education service, Health, Social Services 2,955 3,420 4,215 4, Sub-total 3,505 3,860 4,865 5, , Total Employment 17,150 18,075 23,045 24, ,970 1,370 Population 57,350 64,430 73,753 90,167 7,080 9,323 16,414 Employment to Population Ratio Industrial and Other Employment Population Related Employment Institutional Employment Primary Industry Employment Total Source: Statistics Canada Employment by Place of Work Note: employment figures are classified by Standard Industrial Classification (SIC) Code

83 APPENDIX B DEVELOPMENT CHARGE RECOVERABLE COST CALCULATIONS

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85 APPENDIX B - DEVELOPMENT CHARGE RECOVERABLE COST CALCULATIONS B-1 Development-related Studies B-1.1 Project Description The Town of Ajax will be required to undertake a number of studies over the 2013 to 2022 period that are directly or indirectly related to its capital program for providing services to new development. These studies are potentially applicable to virtually all departments and boards in the Town, including Planning and Development, Public Works, Parks and Recreation, Library, Finance, etc. The DC eligible costs include masterplans and secondary plans, feasibility, design and financing studies and at least two development charge background studies. These studies will generally establish the amount and location of anticipated growth in the Town at a micro level, together with the way in which such growth can be accommodated and the municipal servicing implications thereof. B-1.2 Level of Service Cap The level of service for studies can be approximated on an expenditure per growth increment basis; however, in the final analysis, the requirement fundamentally relates to implementing the provisions of the Town of Ajax s Official Plan. Study needs also relate to the needs of the development areas which evolve over time. B-1.3 Benefit to Existing Development Deduction (BTE) A portion of the studies program includes Planning and Public Works studies relating specifically to estimating and accommodating growth on a location-specific basis (e.g. library, transportation, and recreation masterplans, etc.). These major studies inevitably provide some benefits to existing development, in addition to addressing growth-related challenges and opportunities. For these studies, a 20% BTE deduction has been applied. In most cases, however, with an Official Plan update or Zoning Plan update, the impact on existing development clearly represents one objective of the endeavour. Therefore in these cases, a 50% deduction is involved. Other studies dealing with development charges, growth arrangement and planning for growth areas are considered to be 100% growth related. B-1.4 Grants, Subsidies and Other Contributions The Town of Ajax does not expect to receive any grants, subsidies or other contributions related to the studies capital program. B-1

86 B-2 B % Statutory Deduction Those studies which relate directly or indirectly to the provision of roads, storm water management and fire services do not require a 10% deduction under s.s.5(1)8 of the DCA. All studies which relate to the provision of other municipal services do require a 10% deduction. Planning and Financing studies underpin the full array of municipal services, however it is estimated that approximately 50% of the required capital studies directly or indirectly relate to roads, storm drainage, and fire. As a result, a deduction of 5% has been applied in these cases. B-1.6 Residential vs. Non-Residential Allocation The net growth-related costs have been allocated between residential and non-residential development based on the share of incremental population growth as a percentage of growth in population and employment. Over the next decade, on a Town-wide basis, the Town s population is expected to increase by 14,859 persons and its workforce by 10,394 persons. Thus, the residential:non-residential allocation has been calculated as: 14,859 additional persons = 59% residential and 41% non-residential 14,859 additional persons + 10,394 additional employees

87 B-3 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION MUNICIPALITY: Town of Ajax SERVICE: Studies Less: Less: Potential DC Recoverable Cost Prj. Increased Service Needs Gross Ineligible re:eligible Benefit to Grants, Subsidies & Other (e.g. Net Costs No. Attributable to Timing Capital Level of Increase Existing Other Contributions 10% StatutoryBenefiting Residential Non-Residential Anticipated Development Cost Service in Need Development/U.E.C.¹ Attrib. to New Sub Deduction) New Share Share Est. $ % Development Total Development 59% 41% Costs to be Incurred During the Term of the Proposed By- Law 1 Comprehensive Zoning By-law Update , ,000 75,000 50% 75,000 3,750 71,250 42,038 29,213 2 Development Permitting Study ,000 70,000 35,000 50% 35,000 1,750 33,250 19,618 13,633 3 Transportation Demand Management Plan ,000 50,000 50,000-50,000 29,500 20,500 4 Green Development and Urban Design Guidelines ,000 80,000 80,000 4,000 76,000 44,840 31,160 5 Harwood Avenue Midtown Improvement Study ,000 50,000 50,000 2,500 47,500 28,025 19,475 6 Library Master Plan , ,000 25,000 20% 100,000 10,000 90,000 53,100 36,900 7 Transportation Master Plan Update , ,000 25,000 20% 100, ,000 59,000 41,000 8 Pickering Village (Lower Duffins) Special Policy Area Review ,000 60,000 60,000 3,000 57,000 33,630 23,370 9 DC Background Study , , ,000 5,000 95,000 56,050 38, Other Growth Studies , ,000 25,000 20% 100,000 5,000 95,000 56,050 38,950 Costs to be Incurred Post Proposed By-law Term (i.e. beyond 2017) 11 Commercial Policy Review and Employment Report Update , ,000 20,000 20% 80,000 4,000 76,000 44,840 31, Uptown Intensification Study , , ,000 5,000 95,000 56,050 38, Recreation, Parks & Culture Master Plan , ,000 35,000 20% 140,000 14, ,000 74,340 51, Architectural Design Guidelines for Medium and High Density D ,000 80,000 80,000 4,000 76,000 44,840 31, GO Station Area Intensification Study ,000 75,000 75,000 3,750 71,250 42,038 29, Fire Master Plan , ,000 30,000 20% 120, ,000 70,800 49, Official Plan Review , ,000 75,000 50% 75,000 3,750 71,250 42,038 29, DC Background Study , , , ,000 59,000 41, Other Growth Studies , ,000 25,000 20% 100,000 5,000 95,000 56,050 38,950 Total Estimated Capital Cost $ 1,990,000 $ - $ 1,990,000 $ 370,000 $ - $ 1,620,000 $ 74,500 $ 1,545,500 $ 911,845 $ 633,655 1 Uncommitted excess capacity and inclusive of post planning period capacity, where applicable. 2 A 3% deduction was made as it is estimated that 70% of the studies will be for roads, storm drainage and fire. H:\AJAX\DC \[Ajax DC Model 2012.xlsx]CAP Studies

88 B-4 B-2 Fire B-2.1 Project Description a) 2008 DC Background Study The Town s 2008 DC Background Study set out a capital program for Fire that was primarily directed toward prior expenditures for a new Fire Hall in the northeast portion of the Town, as reflected in an over-committed reserve fund balance ($3.2 million). In addition, several vehicles were to be purchased at a gross cost of $3.1 million (pumper-rescue, heavy rescue, aerial and two fire prevention vehicles). b) 2012 Fire Master Plan 1 The Financial Implementation Plan for the Town s Fire service identified $6.4 million in capital costs. $5.2 million of this program involved the replacement of pump apparatus, a tanker, an aerial and several pumps. These costs did not include any growth-related capacity expansion and are, therefore, not development charge eligible. $1.1 million relates to the purchase of a Heavy Rescue Apparatus and $0.1 million to the equipment requirements for 20 full-time fire fighters recommended to be hired for Station 2. c) The DC Capital Program The Town continues to recover the DC share of the new Fire Hall in the north-east portion of Town. The over-committed reserve fund balance including anticipated interest costs over the next ten years is included in the DC calculation. The Town s ten year growth related capital program also includes the acquisition of two vehicles. B-2.2 Level of Service Cap The level of service for Fire includes stations and equipped vehicles. In 2012, the three facilities including the fire training tower had a total floor area of 52,941 sq.ft. The average replacement cost per square foot is estimated to be $399 inclusive of land (2013 $). Several sources were used to determine the value of the existing facilities inventoried in the calculation of the service level cap for all services. The Town retained Bold Engineering to estimate the 2012 replacement value of eight municipal facilities including the No. 2 fire station. The values resulting from that report were applied to those specific buildings. For recently constructed facilities (i.e. those not included in the 2008 DC Background Study), the valuations were provided by Town staff based on actual construction costs. In both cases, land costs, including the cost of servicing, were added. These costs ranged from $400,000 to $750,000 per acre. In some cases, these values were lower than those assumed 1 Town of Ajax, Master Fire Plan Final Report, May 2012, Dillon Consulting Limited, Sections 11 & 12.

89 in the Bold Engineering valuation. The combined building and land values were then indexed to 2013 $. For all other facilities, the valuation was based on the value from the 2008 study indexed to 2013 $ using the change in the non-residential construction cost index over the period. Equipped vehicles are also included in the service level calculation. The weighted average value for a fully equipped vehicle for the existing inventory is $820,000/vehicle. This is based on the average 2013 cost to replace the various types of vehicles. B-2.3 Benefit to Existing Development Deduction (BTE) The new vehicles were assigned a 5% benefit to existing (BTE) deduction in order to make provision for a possible minor overall service level benefit to the Town as a whole in terms of improved response time. In the case of the negative reserve fund balance, the BTE deduction is nil, as the expenditures were all 100% DC recoverable. B-2.4 Grants, Subsidies and Other Contributions No grants, subsidies or other contributions are anticipated for the Fire projects. B-5 B % Statutory Deduction Section 5(1)8 of the DCA does not apply to Fire Protection Services therefore, no deduction is made for this purpose. B-2.6 Residential vs. Non-Residential Allocation As with Studies, the allocation of DC recoverable costs has been made on the basis of net increase in population and employment over the 10-year period. Over the next decade, on a Town-wide basis, the Town s population is expected to increase by 14,859 persons and its workforce by 10,394 persons. Thus, the residential:non-residential allocation has been calculated as: 14,859 additional persons 14,859 additional persons + 10,394 additional employees = 59% residential and 41% non-residential

90 B-6 Town of Ajax Level of Service Calculation Sheet Service: Contact : Unit Measure: Quantity Measure Fire Facilities Mark Diotte sq.ft. of building area 2013 Description Value/ft² with land, site works, etc. No. 1 Westney Road 9,440 9,440 9,440 9,440 9,440 9,440 9,440 9,440 9,440 9,440 $367 No. 2 Monarch Ave. 14,587 14,587 14,587 14,587 14,587 14,587 14,587 14,587 14,587 14,587 $360 Fire Headquarters 28,262 28,262 28,262 28,262 28,262 $438 Fire Training Tower $1,400 Total 24,027 24,027 24,027 24,027 24,027 52,941 52,941 52,941 52,941 52,941 $399 Population 77,738 81,534 84,735 90,167 96, , , , , ,088 Per Capita Service Level Year Average Quantity per capita Building Value includes $34/sq.ft. for land. Quality ($/sq.ft.) $399 Combined Quantity/Quality Level ($/capita) $156 DC Amount (before deductions) 10 Year Forecast Population 14,859 $ per Capita $156 Eligible Amount $2,318,004 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]Fire Stations

91 B-7 Town of Ajax Level of Service Calculation Sheet Service: Fire Vehicles Contact : Mark Diotte Unit Measure: No. of vehicles Quantity Measure Description Value ($/Vehicle) Pumper $868,781 Quint $1,012,934 Pumper/Tanker $715,466 Aerial Ladder $1,226,514 Special Operation Unit $587,705 Command Unit $86,878 Total ,568 Population 77,738 81,534 84,735 90,167 96, , , , , ,088 Service Level Per 1,000 persons Year Average Quantity per capita Quality ($/vehicle) $819,568 Combined Quantity/Quality Level ($/1,000) $91,136 Combined Quantity/Quality Level ($/capita) $91 DC Amount (before deductions) 10 Year Forecast Population 14,859 $ per Capita $91 Eligible Amount $1,352,169 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]Fire Vehicles

92 B-8 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION MUNICIPALITY: Town of Ajax SERVICE: Fire Protection Less: Less: Potential DC Recoverable Cost Prj. Increased Service Needs Gross Ineligible re: Eligible Benefit to Grants, Subsidies & Other (e.g. Net Costs No. Attributable to Timing Capital Level of Increase Existing Other Contributions 10% Statutory Benefiting Residential Non-Residential Anticipated Development Cost Service in Need Development/U.E.C.¹ Attrib. to New Deduction) New Share Share Est. $ % Development Sub-total Development 59% 41% Projects Already Completed 1 New Fire Hall in north-east portion of Town <2013 2,095,229 2,095,229 2,095,229 2,095,229 1,236, ,044 Costs to be Incurred During the Term of the Proposed By-Law 2 Fire Prevention Vehicle ,500 27,500 1,375 5% 26,125 26,125 15,414 10,711 Costs to be Incurred Post Proposed By-law Term (i.e. beyond 2017) 3 Pumper-Rescue , ,000 40,000 5% 760, , , ,600 Total Estimated Capital Cost $ 2,922,729 $ - $ 2,922,729 $ 41,375 $ - $ 2,881,354 $ - $ 2,881,354 $ 1,699,999 $ 1,181,355 Level of Service Cap Fire Facilities $ 2,318,004 1 Fire Vehicles $ 1,352,169 Total $ 3,670,173 Uncommitted excess capacity and inclusive of post planning period capacity, where applicable. H:\AJAX\DC \[Ajax DC Model 2012.xlsx]CAP Fire

93 B-9 B-3 Parks B-3.1 Project Description a) 2008 DC Background Study 67 different park projects were identified, including 29 parkettes, 13 trails, as well as a number of neighbourhood parks, greens and other parks. b) The 2008 Recreation, Parks and Culture Master Plan identified the need for a number of outdoor facilities including: 7 unlit soccer pitches ($3.5 million total); A multi-use field ($1 million); 6 multi-use courts ($600,000); A skateboard park ($250,000); 3 splashpads ($750,000 total); 2 barrier free playgrounds ($700,000 total); 3 creative playgrounds ($500,000 total); Sand volleyball courts ($50,000); and An outdoor skating path at the Sportsplex ($1 million). c) 2013 DC Study Over the next ten years, the Town intends to develop various neighbourhood parks, parkettes and trails throughout the municipality and particularly in developing areas. The Town s capital program for parks and trails involve the development of more than 31 ha and 12 km of trails. B-3.2 Local Service Policy The Town s policy with respect to work to be undertaken by developers dedicating land for parks and trails is as follows: a) Parkland: The developer is responsible for the preparation of detailed design concepts and is required to deliver parkland with completed finish grading, seeding to general park areas, furnishing all necessary service connections and infrastructure for the ultimate park design including: storm sewerage, including inlet structures and sewer pipe; sanitary sewer connection(s) to the park boundary, as may be applicable; water service meter chamber(s) and connection(s) to the park block, as may be required; designed capacity in electrical systems and electrical service(s) and connections to the park boundary. b) Trails: The developer is responsible for the preparation of detailed design concepts for any trail system contained within or adjacent to a plan of subdivision. The developer must provide the following servicing infrastructure in support of the trail system:

94 B-10 water service connections to trail entrances, as may be required; designed capacity in electrical systems and connection points at trail entrances, as may be required; curb-cuts, boulevard pavings and depressed curbs at roadways, as may be required; accommodation of the trail system within stormwater pond blocks, as may be required. B-3.3 Level of Service Cap A service level calculation sheet is provided for both developed parkland, and trails. The value of the Town s existing inventory of developed parkland is based on the average replacement cost of the full inventory over the past ten years. The Town currently has an inventory of developed parks of 331 hectares with an average value of approximately $283,000/hectare. There are 34,218 linear metres of developed trails with an average value of $396/m. B-3.4 Benefit to Existing Development Deduction (BTE) The capital program is largely made up of neighbourhood parks or parkettes which are generally localized and have a nominal 5% benefit to existing development. Trails, Town-wide parks and Community parks generally experience a higher benefit to existing development between 5-15% dependent upon the location. As a result the benefit to existing development has been calculated at an overall blended rate of 7.5% of the eligible increase of need. B-3.5 Grants, Subsidies and Other Contributions The Town does not anticipate receiving any grants or contributions for the projects included in the DC calculation. B % Statutory Deduction Those services which relate directly or indirectly to the provision of water, sewer, roads, fire and police services do not require a 10% deduction under s.s.5(1)8 of the DCA. As parks and trails are not included in that exemption, a 10% deduction has been made to arrive at the DC recoverable cost. B-3.7 Residential vs. Non-Residential Allocation The net costs benefiting new development have been allocated 95% to residential development, recognizing that virtually all of the demand is related to residents of Ajax. A nominal 5% allocation is made for non-residential development to reflect the limited use of most parks by employees working in the Town and visitors.

95 B-11 Town of Ajax Level of Service Calculation Sheet Service: Parkland Development Contact : Andrew Jackson Unit Measure: Ha of developed parkland Quantity Measure Description Value ($/Ha.) Town-wide $296,436 Passive $245,619 Community $296,436 Neighbourhood/Parkette $317,184 Total ,990 Population 77,738 81,534 84,735 90,167 96, , , , , ,088 Per Capita Service Level Year Average Quantity per capita Quality ($/Ha) $282,990 Combined Quantity/Quality Level ($/capita) $906 DC Amount (before deductions) 10 Year Forecast Population 14,859 $ per Capita $906 Eligible Amount $13,462,254 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]Parkland

96 B-12 Town of Ajax Level of Service Calculation Sheet Service: Contact : Unit Measure: Parkland Trails Andrew Jackson Linear Metres of Paths and Trails Description Value ($/ Lin. Metre) Waterfront and Duffins South 5,100 5,100 6,811 6,811 6,811 6,811 6,811 6,811 6,811 6,811 $355 Duffins Bay and Discovery Bay 5,350 5,350 5,350 5,350 5,350 7,350 7,350 7,350 7,350 7,350 $355 Millers Creek Trail System 2,400 2,400 2,400 2,400 2,400 5,400 5,400 5,400 5,400 5,400 $340 Carruthers Trail ,190 1,190 1,190 2,040 3,306 4,026 $303 Achilles Trail System ,077 1,077 $425 Duffins Trail System (includes 2 bridges) 2,682 2,682 3,494 3,928 3,928 5,928 5,928 5,928 5,928 $664 Pickering Village Trail System $355 Audley Trail, Phase ,394 $258 Ajax Greenbelt Trail 252 1,282 1,282 1,282 1,282 $138 Total 14,247 17,879 19,994 20,806 21,930 27,182 30,212 31,062 32,508 34,218 $396 Population 77,738 81,534 84,735 90,167 96, , , , , ,088 Per Capita Service Level Year Average Quantity per capita Quality ($/m) $396 Combined Quantity/Quality Level ($/capita) $101 DC Amount (before deductions) 10 Year Forecast Population 14,859 $ per Capita $101 Eligible Amount $1,500,759 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]Trails

97 B-13 MUNICIPALITY: SERVICE: Parkland Development Town of Ajax INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Less: Less: Potential DC Recoverable Cost Prj. Increased Service Needs Gross Ineligible re: Eligible Benefit to Grants, Subsidies & Other (e.g. Net Costs No. Attributable to Timing Capital Level of Increase Existing Other Contributions 10% Statutory Benefiting Residential Non-Residential Anticipated Development Cost Service in Need Development/U.E.C.¹ Attrib. to New Sub Deduction) New Share Share Est. $ % Development Total Development 95% 5% Trail Length (m) Park Size (ha) Costs to be Incurred During Term of Proposed By-law 1 Stammers Drive Parkette , ,000 12, % 148,000 14, , ,540 6,660 2 Duffins North Trail (Phase 2) , ,000 45, % 555,000 55, , ,525 24,975 3 Luvian Homes Parkette , ,000 12, % 148,000 14, , ,540 6,660 4 Menkes Imagination Neighbourhood Park , ,000 48, % 592,000 59, , ,160 26,640 5 Carruthers Trail - Chambers to Beck , ,000 18, % 231,250 23, , ,719 10,406 6 Carruthers South Trail - Shoal Pt to Mayor , ,000 30, % 370,000 37, , ,350 16,650 7 Carruthers South Trail - Greenhalf to Marjoram , ,000 48, % 601,250 60, , ,069 27,056 8 Meadows North Neighbourhood Park , ,000 48, % 601,250 60, , ,069 27,056 9 Carruthers Trail - Rossland to Taunton , ,000 74, % 920,375 92, , ,921 41, Beechridge Parkette , ,000 12, % 148,000 14, , ,540 6, Sundial Audley/Rossland Neighbourhood Park , ,000 52, % 647,500 64, , ,613 29, A3 John Boddy Parkette , ,000 15, % 185,000 18, , ,175 8, Magnum Opus Neighbourhood Park ,500,000 1,500, , % 1,387, ,750 1,248,750 1,186,313 62, A9 Central Parkette , ,000 45, % 555,000 55, , ,525 24, Sundial Audley/Rossland Valley Parkettes , ,000 26, % 323,750 32, , ,806 14, Lajter North/Daste Parkette , ,000 12, % 148,000 14, , ,540 6, A8 Rail Trail , ,800 44, % 553,890 55, , ,576 24, Carruthers Trail - Bayly to Achilles , ,000 22, % 277,500 27, , ,263 12,488 Costs to be Incurred Post Proposed By-law Term (i.e. beyond 2017) 19 Sportsplex, Phase ,500,000 2,500, , % 2,312, ,250 2,081,250 1,977, , A7 Woodland Park - Harwood Avenue , ,000 11, % 138,750 13, , ,631 6, A9 East Village Park , ,000 16, % 208,125 20, , ,947 9, A9 East Neighbourhod Park , ,000 45, % 555,000 55, , ,525 24, Sundial Downtown Park, Phase , ,000 41, % 508,750 50, , ,981 22, A9 North Neighbourhood Park ,024,800 1,024,800 76, % 947,940 94, , ,489 42, Porte Road Greenbelt Trail , ,000 17, % 212,750 21, , ,901 9, A9 Taunton Parkette , ,000 12, % 148,000 14, , ,540 6, Westney/Ritchie Greenbelt Trail , ,000 16, % 203,500 20, , ,993 9, A9 Duffins Parkette , ,000 12, % 148,000 14, , ,540 6,660 Total Estimated Capital Cost $ 14,893,600 $ 14,893,600 $ 1,117,020 $ - $ 13,776,580 $ 1,377,658 $ 12,398,922 $ 11,778,976 $ 619,946 1 Uncommitted excess capacity and inclusive of post planning period capacity, where applicable. Level of Service Cap Parkland 13,462,254 Trails 1,500,759 Total 14,963,013 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]CAP Park

98 B-14 B-4 Indoor Recreation Facilities B-4.1 Project Description a) 2008 DC Background Study The Town s 2008 DC Background Study contained a capital program which was approximately 30% beyond the Town s level of service cap. The gross cost included $36.3 million for two Sportsplex Community Centre phases, $2.15 million for two community schools and $0.5 million for a twin ice pad expansion at ACC. b) 2008 Master Plan 1 A Sportsplex multi-use community centre was costed in 2007 $ excluding land at $16.4 million for Phase 1 and $20.25 million for Phase 2. Two pavilions (Waterfront East and Greenwood) were costed at $1.4 million and two community school facilities at $1.3 million. c) 2013 DC Capital Program The DC calculation for Recreation is comprised of future phases of the Audley Recreation Centre and space for community use at a school in A-9, both of which are planned for construction during the 2018 to 2022 period. B-4.2 Level of Service Cap The quantity level of service for Recreation is based on the historic inventory of floor area of major indoor recreation facilities. The quality service level of $376 per sq.ft., inclusive of land and buildings (2013 $), reflects the blended average replacement cost of the existing facilities. In some cases, the values were determined based on a report prepared by Bold Engineering. The approach used to value all municipal facilities is discussed in Section B.2.2. B-4.3 Benefit to Existing Development Deduction (BTE) A 10% deduction has been made for the recreational facilities to recognize potential benefit to existing development, as a result of the additional capacity created that will be available to all residents. B-4.4 Grants, Subsidies and Other Contributions No grants, subsidies or other contributions are anticipated for either of the capital projects. B % Statutory Deduction Those services which relate directly or indirectly to the provision of water, sewer, roads, fire and police services do not require a 10% deduction under s.s.5(1)8 of the DCA. Thus Recreation does require the provision of a 10% deduction. 1 Town of Ajax, Recreation, Parks & Culture Master Plan, Monteith Brown Planning Consultants, in association with Tucker-Reid Associates and the JF Group, April 2008.

99 B-15 B-4.6 Residential vs. Non-Residential Allocation The net costs benefiting new development have been allocated 95% to residential development recognizing that the vast majority of the demand is related to residents of Ajax. A nominal 5% allocation is made for non-residential development, to reflect the potential limited use of recreation facilities by visitors and employees working in the Town.

100 B-16 Town of Ajax Level of Service Calculation Sheet Service: Contact : Unit Measure: Indoor Recreation Facilities Catherine Bridgeman sq.ft.of building area Description Value/ft² with land, site works, etc. Ajax Community Centre 217, , , , , , , , , ,153 $379 Village Community Centre 5,903 5,903 5,903 5,903 5,903 5,903 5,903 5,903 5,903 5,903 $335 Village Arena and Community Centre 30,140 30,140 30,140 30,140 30,140 30,140 30,140 30,140 30,140 30,140 $336 St. Andrews Community Centre 8,199 8,199 8,199 8,199 8,199 8,199 8,199 8,199 8,199 8,199 $354 Westney School Gym/staff room (50%) 5,468 5,468 5,468 5,468 5,468 5,468 5,468 5,468 5,468 5,468 $338 Lakeside School Gym (50%) 4,796 4,796 4,796 4,796 4,796 4,796 4,796 4,796 4,796 4,796 $338 Lakeside School Comm Halls and Office 3,265 3,265 3,265 3,265 3,265 3,265 3,265 3,265 3,265 3,265 $338 Dennis O'Connor H.S. cafetorium and gym (50%) 8,010 8,010 8,010 8,010 8,010 8,010 8,010 8,010 8,010 8,010 $338 St. Andrews Gym 8,240 8,240 8,240 8,240 8,240 8,240 8,240 8,240 8,240 8,240 $338 Lincoln Alexander School - gym (50%) 5,089 5,089 5,089 5,089 5,089 5,089 5,089 5,089 5,089 5,089 $338 Lincoln Alexander School - community space 3,782 3,782 3,782 3,782 3,782 3,782 3,782 3,782 3,782 3,782 $338 McLean Community Centre 69,111 69,111 69,111 69,111 69,111 69,111 69,111 69,111 69,111 69,111 $417 Paulynn Park Pavillon $153 Rotary Park Pavillon 3,824 3,824 3,824 3,824 3,824 3,824 3,824 3,824 3,824 3,824 $248 Carruthers Marsh Pavilion 3,436 3,436 3,436 $457 Greenwood Discovery Pavilion 1,370 1,370 1,370 $714 Total 373, , , , , , , , , , Population 77,738 81,534 84,735 90,167 96, , , , , ,088 Per Capita Service Level Year Average Quantity (sq.ft.) per capita Note: 2008 Building Value includes $34/sq.ft. for land. Quality ($/sq.ft.) $376 No land value has been assigned to the Pavillions Combined Quantity/Quality Level ($/capita) $1,488 DC Amount (before deductions) 10 Year Forecast Population 14,859 $ per Capita $1,488 Eligible Amount $22,110,192 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]Rec Fac

101 B-17 MUNICIPALITY: INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Town of Ajax SERVICE: Recreational Facilities Less: Less: Potential DC Recoverable Cost Prj. Increased Service Needs Gross Ineligible re: Eligible Benefit to Grants, Subsidies & Other (e.g. Net Costs No. Attributable to Timing Capital Level of Increase Existing Other Contributions 10% Statutory Benefiting Residential Non-Residential Anticipated Development Cost Service in Need Development/U.E.C.¹ Attrib. to New Sub Deduction) New Share Share Est. $ % Development Total Development 95% 5% Projects Already Completed Costs to be Incurred During the Term of the Proposed By- Law Costs to be Incurred Post Proposed By-law Term (i.e. beyond 2017) Future Phases of Audley Recreation Centre ,889,700 13,892,850 20,996,850 2,099,685 10% 18,897,165 1,889,716 17,007,448 16,157, ,372 A-9 Community School ,850, ,658 1,113, ,334 10% 1,002, , , ,717 45,090 Total Estimated Capital Cost $ 36,739,700 $ 14,629,508 $ 22,110,192 $ 2,211,019 $ - $ 19,899,173 $ 1,989,917 $ 17,909,256 $ 17,013,793 $ 895,463 1 Uncommitted excess capacity and inclusive of post planning period capacity, where applicable. Level of Service Recreation Facilities 22,110,192 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]CAP Rec

102 B-18 B-5 Libraries B-5.1 Project Description a) 2008 DC Background Study The Town s 2008 DC Background Study set out a capital program for the Library which involved $3.0 million for a new 10,000 sq.ft. Branch Library in the North Ajax Sportsplex, $1.43 million in debt associated with the new main library and $1.3 million for additional library materials primarily in the North Ajax Branch. b) 2011 Library Master Plan 1 The Master Plan recommended adding 25,000 sq.ft. of additional library space in North Ajax by 2031, to include 6,000 sq.ft. expansion of the McLean Branch (by 6,000 to 14,000 sq.ft.) around 2021 and a proposed new Branch at the Audley Recreation Centre in 2016 of between 12,000 and 20,000 sq.ft., based on a Space Assessment Study. The need for the small Pickering Village Library was to be reassessed. Growth in Southeast Ajax and the possible need for expanded library services was to be monitored. A provisional target 0.55 sq.ft. per capita was recommended for Ajax. c) 2013 DC Capital Program Over the next ten years, the Town plans to construct a new 15,000 sq.ft. branch at the Audley Recreation Centre. The capital plan included in the DC calculation also includes materials for the new branch, as well as additional materials system wide. B-5.2 Level of Service Cap A level of service for library facilities and materials has been calculated, based on floor area and number of items, respectively. The Town currently operates 43,800 sq.ft. of library space, including the Main Branch, the Pickering Village Library and the McLean Community Centre Library as well as administrative space. The average facility cost of $331 per sq.ft., reflects the average replacement cost of the existing facilities, including design, construction, furnishings, land and site servicing. The approach used to value all municipal facilities is discussed in Section B-2.2. The average value per item of the existing collection is $31, based on the average 2013 cost to purchase new materials. B-5.3 Benefit to Existing Development Deduction (BTE) No deduction for BTE has been made for the outstanding DC recoverable share of the Main Branch as this amount is already net of deductions. A 10% benefit to existing (BTE) deduction has been made to the new branch at the Audley Recreation Centre in order to make provision for any associated overall service level benefit to the Town as a whole from this location. A 5% 1 New Communities, New Horizons, Ajax Public Library Board Master Plan , Libraries in Transition, A.F. Church & Associates, Stan Squires and Associates and Monteith Brown Planning Consultants, section 7 & Recommendations

103 B-19 benefit to existing development deduction is made to the expansion of the library collection across the Town as well as at the new branch. B-5.4 Grants, Subsidies and Other Contributions There are no grants, subsidies or other contributions anticipated in relation to the library projects. B % Statutory Deduction Those services which relate directly or indirectly to the provision of roads, stormwater and fire services do not require a 10% deduction under s.s.5(1)8 of the DCA. Thus Libraries does require the provision of a 10% deduction. B-5.6 Residential vs. Non-Residential Allocation It is expected that the primary users of the libraries in Ajax will be residents of the Town. Therefore, the Net Costs Benefiting New Development has been allocated 95% to residential development. The balance is allocated to non-residential development to recognize the nominal use of these facilities by visitors, students and persons employed in the Town.

104 B-20 Town of Ajax Level of Service Calculation Sheet Service: Contact : Unit Measure: Library Facilities Donna Bright sq.ft. of building area 2013 Description Value/ft² with land, site works, etc. Main Branch 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 $ 336 Pickering Village 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 $ 265 McLean Community Centre 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 $ 353 Administration and Technical Services 5,600 5,600 5,600 5,600 5, $ 265 Admin/TS & Post Office Storage 3,200 3,200 3,200 3,200 3,200 3,200 3,200 $ 332 Total 46,200 46,200 46,200 49,400 49,400 43,800 43,800 43,800 43,800 43,800 $331 Population 77,738 81,534 84,735 90,167 96, , , , , ,088 Per Capita Service Level Year Average Quantity (sq.ft.) per capita Building Value includes $34/sq.ft. for land. Quality ($/sq.ft.) $ Building values include land unless otherwise noted. Combined Quantity/Quality Level ($/capita) $160 DC Amount (before deductions) 10 Year Forecast Population 14,859 $ per Capita $160 Eligible Amount $2,377,440 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]Libr Fac

105 B-21 Town of Ajax Level of Service Calculation Sheet Service: Contact : Unit Measure: Library Collection Materials Donna Bright No. of library collection items Description Value ($/item) Print Catalogued 128, , , , , , , , , ,123 $32 Paperbacks 28,297 29,121 29,216 30,583 32,611 42,831 45,302 46,665 44,700 39,695 $18 Tapes 2,198 1,988 1,830 1,788 1,868 1, $55 Compact Discs 2,318 3,213 4,503 6,222 7,892 9,342 10,340 10,958 10,836 10,738 $35 Video Cassettes 6,218 5,609 5,221 4,896 4,206 5, $32 Magazines 5,039 5,422 5,943 6,442 6,553 7,132 5,159 5,275 5,423 5,457 $6 DVD 1,513 2,218 3,254 5,680 7,624 9,602 10,846 11,785 12,369 14,081 $39 Software $48 Video Games ,178 1, ,052 $55 E-Books 8,257 8,256 8,475 8,475 8,475 9,402 11,535 11,515 $74 Downloadedable Audiobooks 2,190 4,354 5,676 7,375 $80 E-Journal Databases $1,529 Total 174, , , , , , , , , ,563 $31 Population 77,738 81,534 84,735 90,167 96, , , , , ,088 Per Capita Service Level Year Average Quantity (items) per capita Quality ($/item) $31 Combined Quantity/Quality Level ($/capita $69 DC Amount (before deductions) 10 Year Forecast Population 14,859 $ per Capita $69 Eligible Amount $1,025,271 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]Libr Mat

106 B-22 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION MUNICIPALITY: Town of Ajax SERVICE: Library Less: Less: Potential DC Recoverable Cost Prj. Increased Service Needs Gross Ineligible re: Eligible Benefit to Grants, Subsidies & Other (e.g. Net Costs No. Attributable to Timing Capital Level of Increase Existing Other Contributions 10% Statutory Benefiting Residential Non-Residential Anticipated Development Cost Service in Need Development/U.E.C.¹ Attrib. to New Sub Deduction) New Share Share Est. $ % Development Total Development 95% 5% Projects Already Completed 1 Outstanding DC Recoverable Share from Main Library Branch < , , , , ,341 40,913 Costs to be Incurred During the Term of the Proposed By- Law 2 Additional materials to maintain current levels of service , ,000 25,000 5% 475,000 47, , ,125 21,375 Costs to be Incurred Post Proposed By-law Term (i.e. beyond 2017) 3 ARC Facility (15,000 sq.ft.) ,651,400 5,998,892 1,652, ,251 10% 1,487, ,726 1,338,531 1,271,605 66,927 4 Library Materials for ARC ,000,000 1,568, ,949 21,597 5% 410,352 41, , ,851 18,466 Total Estimated Capital Cost $ 10,969,654 $ 7,566,943 $ 3,402,711 $ 211,848 $ - $ 3,190,863 $ 237,261 $ 2,953,602 $ 2,805,922 $ 147,680 Level of Service Cap Facilities $2,377,440 Materials $1,025,271 $3,402,711 1 Uncommitted excess capacity and inclusive of post planning period capacity, where applicable. H:\AJAX\DC \[Ajax DC Model 2012.xlsx]CAP Libr

107 B-23 B-6 Operations B-6.1 Project Description The growth-related capital program includes plans to increase the fleet of public works vehicles, in order to accommodate the needs of new development in Ajax. B-6.2 Level of Service Cap The level of service for Operations includes facilities and vehicles. In 2012, Operations was functioning out of four service centres, with a total floor area of 72,810 sq.ft. including a salt dome and cold storage building. The average replacement value per square foot including land, furnishing, fixtures and site servicing is estimated to be $318 (2013 $). The approach used to value all municipal facilities is discussed in Section B-2.2. Vehicles are also included in the service level calculation. The value of the vehicles includes equipment. The average value per item of the existing inventory is $72,774/item. This is based on the average 2013 cost to replace a vehicle. B-6.3 Benefit to Existing Development Deduction (BTE) For new public works vehicles, the BTE deduction is 5% to account for marginal increases in service levels overall. B-6.4 Grants, Subsidies and Other Contributions No grants, subsidies or other contributions are anticipated for the expenditures included in the DC capital program. B % Statutory Deduction Those services which relate directly or indirectly to the provision of water, sewer, roads, fire and police services do not require a 10% deduction under s.s.5(1)8 of the DCA. The Operations service is applicable to both roads and parkland with a greater share of the assets deployed for road and related maintenance; however, a 10% deduction has been applied. B-6.6 Residential vs. Non-Residential Allocation The DC recoverable share for this service has been allocated on the basis of net increase in population and employment over the ten year period similar to Studies and Fire services. Over the next decade, on a Town-wide basis, the Town s population is expected to increase by 14,859 persons and its workforce by 10,394 persons. Thus, the residential:non-residential allocation has been calculated as: 14,859 additional persons = 59% residential and 41% non-residential 14,859 additional persons + 10,394 additional employees

108 B-24 Town of Ajax Level of Service Calculation Sheet Service: Operations Facilities Contact : Unit Measure: sq.ft. of building area Quantity Measure 2013 Description Value/ft² with land, site works, etc. Operations Centre (491 Mackenzie Ave.) 24,470 24,470 24,470 24,470 24,470 24,470 24,470 $282 Pickering Beach Garage 1,248 1,248 1,248 1,248 1,248 1,248 1,248 1,248 1,248 1,248 $161 Sportsplex Maintenance Building 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 $161 Mill Street 2,348 2,348 2,348 2,348 2,348 2,348 2,348 2,348 2,348 2,348 $337 Operations Centre (800 Salem Rd) ,948 54,948 54,948 $401 Salt Dome 8,267 8,267 8,267 $195 Cold Storage Building 4,499 4,499 4,499 $260 Total 29,566 29,566 29,566 29,566 29,566 29,566 29,566 72,810 72,810 72,810 $318 Population 77,738 81,534 84,735 90,167 96, , , , , ,088 Per Capita Service Level Year Average Quantity (sq.ft. per capita) Building Value includes $34/sq.ft. for land. Quality ($/sq.ft.) $318 Combined Quantity/Quality Level ($/capita) $137 DC Amount (before deductions) 10 Year Forecast Population 14,859 $ per Capita $137 Eligible Amount $2,035,683 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]Depots and Domes

109 B-25

110 B-26

111 B-27 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION MUNICIPALITY: Town of Ajax SERVICE: Operations Facilities and Vehicles Less: Potential DC Recoverable Cost Prj. Increased Service Needs Gross Ineligible re: Eligible Benefit to Grants, Subsidies & Other (e.g. Net Costs No. Attributable to Timing Capital Level of Increase Existing Other Contributions 10% Statutory Benefiting Residential Non-Residential Anticipated Development Cost Service in Need Development/U.E.C.¹ Attrib. to New Sub Deduction) New Share Share Est. $ % Development Total Development 59% 41% Projects Already Completed Costs to be Incurred During the Term of the Proposed By- Law 1 Facility Maintenance equipment ,000 55,000 2,750 5% 52,250 5,225 47,025 27,745 19,280 2 Multi-use Trails and Sidewalk Maintenance Equip , ,000 7,500 5% 142,500 14, ,250 75,668 52,583 3 Roads and Bridges Maintenance Equip , ,500 10,375 5% 197,125 19, , ,673 72,739 4 Multi-use Trails and Sidewalk Maintenance Equip , ,000 7,000 5% 133,000 13, ,700 70,623 49,077 5 Multi-use Trails and Sidewalk Maintenance Equip ,000 70,000 3,500 5% 66,500 6,650 59,850 35,312 24,539 6 Facility Maintenance equipment ,000 55,000 2,750 5% 52,250 5,225 47,025 27,745 19,280 7 Multi-use Trails and Sidewalk Maintenance Equip , ,000 12,000 5% 228,000 22, , ,068 84,132 8 Sportsfield Maintenance Equipment , ,000 5,000 5% 95,000 9,500 85,500 50,445 35,055 Costs to be Incurred Post Proposed By-law Term (i.e. beyond 2017) 9 Multi-use Trails and Sidewalk Maintenance Equip , ,000 11,250 5% 213,750 21, , ,501 78, Roads and Bridges Maintenance Equip , ,000 13,750 5% 261,250 26, , ,724 96, Infrastructure Inspection Equipment ,000 30,000 1,500 5% 28,500 2,850 25,650 15,134 10, Sportsfield Maintenance Equipment , ,500 7,075 5% 134,425 13, ,983 71,380 49, Facility Maintenance equipment ,000 55,000 2,750 5% 52,250 5,225 47,025 27,745 19, Multi-use Trails and Sidewalk Maintenance Equip , ,000 10,000 5% 190,000 19, , ,890 70, Infrastructure Inspection Equipment ,000 75,000 3,750 5% 71,250 7,125 64,125 37,834 26, Roads and Bridges Maintenance Equipment ,000 75,000 3,750 5% 71,250 7,125 64,125 37,834 26, Multi-use Trails and Sidewalk Maintenance Equip , ,000 15,000 5% 285,000 28, , , , Sportsfield Maintenance Equipment ,000 75,000 3,750 5% 71,250 7,125 64,125 37,834 26, Facility Maintenance equipment ,000 55,000 2,750 5% 52,250 5,225 47,025 27,745 19, Multi-use Trails and Sidewalk Maintenance Equip ,000 75,000 3,750 5% 71,250 7,125 64,125 37,834 26, Sportsfield Maintenance Equipment ,000 80,000 4,000 5% 76,000 7,600 68,400 40,356 28, Roads and Bridges Maintenance Equip ,000 75,000 3,750 5% 71,250 7,125 64,125 37,834 26, Infrastructure Inspection Equipment ,000 30,000 1,500 5% 28,500 2,850 25,650 15,134 10, Multi-use Trails and Sidewalk Maintenance Equip , ,000 7,500 5% 142,500 14, ,250 75,668 52, Sportsfield Maintenance Equipment ,000 80,000 4,000 5% 76,000 7,600 68,400 40,356 28, Roads and Bridges Maintenance Equip , ,000 23,750 5% 451,250 45, , , ,511 Total Estimated Capital Cost 3,489,000-3,489, ,450-3,314, ,455 2,983,095 1,760,026 1,223,069 Level of Service Cap vehicles $1,619,631 facilities $2,035,683 Total $3,655,314 1 Uncommitted excess capacity and inclusive of post planning period capacity, where applicable. H:\AJAX\DC \[Ajax DC Model 2012.xlsx]CAP Operations

112 B-28 B-7 Roads and Related B-7.1 Project Description In order to facilitate meeting the increased transportation needs associated with anticipated development, the following studies have been undertaken by the Town of Ajax and have been used as the basis for developing an 18-year capital program ( ) for transportation infrastructure: Town of Ajax Transportation Master Plan (2013); Town of Ajax Pedestrian and Bicycle Master Plan (2010); Traffic Signal Warrant Calculations (Annual); Region of Durham Capital Road Program (Annual); and Ministry of Transportation Capital Road Program (Annual). In addition, the Transportation Schedule (Schedule C ) of the Town of Ajax Official Plan has been used as the basis for determining road classification (local, collector and arterial roads). In February of 2013, Town of Ajax Council approved the Town of Ajax Transportation Master Plan Update (TMP) which defines a comprehensive, fully integrated and sustainable transportation network to accommodate population and employment growth to the year The TMP meets the Town s transportation objectives of promoting mobility for all modes of transportation, improving existing and future transportation infrastructure, improving road safety and supporting a vibrant Downtown and Uptown through a multi-modal transportation network. This study was used as a basis for determining all new roads and road widenings (i.e. widening from 2 to 4 lanes) that provide service to future development areas. All costs for studies, environmental assessments, engineering, contract administration and inspection, property acquisition, sidewalks, storm sewers, cycling facilities, street lights, bridges, traffic signals, etc., associated with these projects have been included, unless specifically identified elsewhere. Environmental Assessment Studies associated with new road construction/road widening/ realignment projects that are required to service future growth (as identified by the Town s Transportation Master Plan) have generally been included in the associated new road construction/road widening/realignment project cost. Other Transportation related studies, not specifically related to an individual road project, which are required to facilitate future growth, are included within this study under the Development Related Studies, Section B-1. The proposed capital program and level of service is addressed in a report by the MMM Group, included in this Appendix as Section B-8. B-7.2 Local Service Policy Developers are responsible for: all internal subdivision roads up to 10 m width pavement and 26 m r.o.w.;

113 B-29 improvements to roads abutting the subdivision, up to 10 m pavement. Where development is to occur on both sides, the first subdivision absorbs the full cost, with the Town pursuing "best efforts" recovery and repayment to the front-ender from the subsequent developer; all road capacity expansions not abutted by future development area, are to be included in the DC calculation, together with those roads identified in previous studies which may not yet be improved; developers are responsible for sidewalks, streetlights, landscaping, adjoining intersection improvements and traffic signals within a site plan or a plan of subdivision. B-7.3 Level of Service Analysis A review of the Town s historic service levels was undertaken by the MMM Group and documented in their report which is included as Section B-8 of this Appendix. B-7.4 Benefit to Existing Development The Town has adopted the following conventions with respect to benefit to existing development deductions for roads and related works in its 2013 development charge calculations. New Road Construction New road construction projects are projects identified in the TMP as required to accommodate future transportation needs. New collector and arterial roadways that provide service to future development areas have been included in this study. A 5% benefit to existing development deduction was made for all new road construction projects to recognize that a minimal travel time benefit to existing development may occur as a result of constructing these roads. Road Widening Road widening projects are projects identified in the TMP as required to accommodate future transportation needs. This study was used as a basis for determining all road widenings (i.e. widening from 2 to 4 lanes) that provide service to future development areas. These projects will also include the construction of appropriate turning lanes as required to service future growth In some locations (e.g. Rossland Road Church Street to Lake Ridge Road and Church Street Kingston to Rossland Road), the existing road is required to be significantly rehabilitated (i.e. full depth granular replacement) at the time of the road widening in order to accommodate future transportation needs, or requires upgrading (i.e. urbanization) to current engineering standards. The benefit to existing development deduction for road widening works for these locations is based on the cost to mill and resurface the existing roadway and was calculated to be 13 to 23% of the total project cost. The cost to mill and resurface used for this calculation was $40/m 2, based on the average tendered amount from recent Town of Ajax contracts and an assumed existing road width of 10 m. In other locations (e.g. Harwood Avenue Taunton Road to Woodcock Avenue, Audley Road Kerrison Drive to Kingston Road and Rossland Road Town West Limits to Church Street), the existing road will not require significant rehabilitation or upgrading, therefore the benefit to

114 B-30 existing development deduction was considered to be the same as for new road construction projects (5%). Road Reconstruction Road reconstruction projects are projects that are intended to maintain the same number of basic lanes, however, the existing roadway is required to be significantly rehabilitated (i.e. full depth granular replacement) in order to accommodate future transportation needs, or requires upgrading (i.e. urbanization) to current engineering standards. These projects will also include the construction of appropriate turning lanes as required to service future growth. Audley Road between Taunton and Rossland is an example of an existing roadway that requires rehabilitation. It is not possible to create an urban cross-section as there is not enough grade to make storm sewers function well. As well, there are environmental benefits to keeping ditches for groundwater recharge and water treatment purposes. The road needs to be reconstructed as the current road and shoulder widths are narrower than the standards. If the residential subdivisions and the community centre were not constructed, a smaller road would have been acceptable. Thus, the road reconstruction is needed to support this growth. Existing collector and arterial roadways that provide service to future development areas, and require reconstruction, have been included in this study. The benefit to existing development deduction for road reconstruction cost is based on the cost to mill and resurface the existing roadway and was calculated to be 10 to 24%. The same assumptions were used for the mill and resurface cost as indicated above. Top Asphalt Typically, top asphalt associated with new road construction/road widening/realignment projects that are required to service future growth (as identified by the Town s Transportation Master Plan) have generally been included in the associated new road construction/road widening/ realignment project cost. The one exception is top asphalt on the widened section of Harwood Avenue from the school site to Woodcock Avenue. This road widening was completed to base asphalt in 2011 and the remaining top asphalt is planned for The benefit to existing development deduction for this top asphalt was based on the percentage used in the 2008 DC Background Study of 17% of the project cost, as this is the completion of an earlier project. Road Realignment Road realignment projects are projects that are intended to maintain the same number of basic lanes, however, the existing roadway is required to be realigned in order to accommodate future transportation needs. These projects will also include the construction of appropriate turning lanes as required to service future growth. The benefit to existing development deduction for road realignment of Rossland Road is based on the cost to mill and resurface the existing roadway and was calculated to be 6% of the total project cost.

115 B-31 Bridges New bridges that are required to service future growth (as identified by the Town s Transportation Master Plan) have been included in the study and have been considered to have a 5% benefit to existing development similar to new road construction (e.g. Audley Road CPR Overpass and Chambers Drive Structure over Carruthers Creek). Bridges that require replacement to service future growth and/or require upgrades to accommodate increased transportation needs have also been included in this study. Consistent with the 2008 DC Background Study, the benefit to existing development deduction for these projects has been based on the same percentage as the road reconstruction/realignment calculations, 6 to 10% (Rossland Road Structures at Urfe and East Duffins Creek and Church Street Structure at East Duffins Creek). The structure constructed at Williamson Drive over the Carruthers Creek in 2007 was constructed by the developer based on a Front Ending Agreement. The final repayment is due in 2015 to the developer. There is no benefit to existing development for this structure as this was a localized requirement serving growth only. Traffic Signals/Roundabouts New traffic signals associated with new road construction/road widening/realignment projects that are required to service future growth (as identified by the Town s Transportation Master Plan) have generally been included in the associated new road construction/road widening/ realignment project cost. Existing intersections that are currently stop-controlled, but are projected to require full signalization/roundabouts to service future growth, and are not associated with a road project, are included individually within this study. These projects are based on the Town s annual traffic count program and associated traffic signal warrant calculations. A 5% benefit to existing development deduction was made for all new signal/roundabout projects to recognize that a minimal benefit to existing development will occur as a result of constructing these controls. Storm Pipes The capital program includes the construction of a stormwater pipe along Salem Road to collect stormwater from both Salem Road and Kerrison Drive, as well as adjacent development. Typically, these pipes are installed when a road is widened and included in the cost of the road project; however, this work was not undertaken when Salem Road was widened in No BTE has been applied as the benefiting lands have not been developed except for several parcels that have already contributed to the cost of stormwater management works for this area. These contributions have been deducted from the project costs under the heading of grants, subsidies and other contributions. Street Lights and Sidewalks New street lights and sidewalks associated with new road construction/road widening/ realignment projects that are required to service future growth (as identified by the Town s

116 B-32 Transportation Master Plan) have generally been included in the associated new road construction/road widening/realignment project cost. The Town of Ajax s current practice is to collect Development Charges on behalf of the Region of Durham to provide street lights and sidewalks on Regional road widening projects that are required to service future growth. The timing of these projects is based on the Region s Capital Road Program and they have been included in this study. A 5% benefit to existing development deduction was made for all street light and sidewalk projects to recognize that a minimal benefit to existing development will occur as a result of improving these roads. Multi-Use Trail and Cycling Facilities In March of 2010, Town of Ajax Council approved the Town of Ajax Pedestrian and Bicycle Master Plan which provides a plan to expand the network of trails, sidewalks and bikeways, along with supportive policies and programs to achieve a balanced transportation network to service existing and future growth within the Town of Ajax. This study was used as a basis for determining all new cycling facilities that provide service to future development areas. Cycling facilities on Regional Roads are subject to the following cost-sharing arrangement: On-road (cycling lanes and paved shoulders): o Region is responsible for 100% of the capital construction costs for all on-road cycling facilities and paved shoulders along Regional Roads. Off-road (urban cross-section: multi-use pathway): o Region pays for platform, including: land acquisition, utility relocation, grading, and customized bridge structures. o Local Municipalities pay for: granular, asphalt, signage, markings, the provision of other amenities and path maintenance. Only the Town s share of these projects has been included within this study. In addition, the timing of these projects on regional facilities is based on the Region s Capital Road Program. A higher (10%) benefit to existing deduction was made for multi-use trail and cycling facilities on Regional and Town Roads. This deduction recognizes the fact that improvements to trails and cycling facilities are expected to result in improvements to the overall system, thereby providing benefit to existing users. B-7.5 Post Period/Excess Capacity No deduction has been made for post period capacity, as the roads program is sized to meet the needs of growth to build-out (2031). B-7.6 Grants, Subsidies and Other Contributions The following landowner and other contributions are anticipated for individual projects in the Roads and Bridges capital program:

117 Project/Description Achilles Road East of Shoal Point to Audley new 2 lane urban construction (developer contribution received) Audley Road Highway 2 to Chambers new 2 lane urban construction (west side developer s cost, east side undevelopable therefore DC cost) Chambers Drive east of valley to Audley - new 2 lane urban construction (north side developer s cost, south side undevelopable therefore DC cost) Range Road Hoile to Lake Ridge Road 2 lane rural reconstruction (50% developer cost as per Residential Subdivision Agreement No. 18T-94020) B-33 Contribution $286,707 $1,600,000 $1,950,000 $790,000 Lake Ridge Road Bayly to Ontoro - 2 lane rural reconstruction $2,130,000 1 (boundary road, cost to be shared with Whitby) Storm Pipe on Salem Road (developer contributions received) $145,221 Total $6,901,928 The developer contributions are deducted directly from the DC recoverable share after deducting the benefit to existing development. The contribution to Lake Ridge road is applicable to both benefit to existing and growth-related shares and therefore, has been allocated proportionately between these two shares. B % Statutory Deduction Those services which relate directly or indirectly to the provision of roads, fire and storm water management do not require a 10% deduction under s.s.5(1)8 of the DCA. B-7.8 Residential vs. Non-Residential Allocations The net growth related costs have been allocated between residential and non-residential development based on the share of population as a percentage of population and employment. Over the period, on a Town-wide basis, the Town s population is expected to increase by 17,573 persons and its workforce by 14,555 persons. Thus, the residential:nonresidential allocation has been calculated as: 17,573 additional persons = 55% residential and 45% non-residential 17,573 persons + 14,555 additional employees These population and employment figures vary from those included in the MMM report in section B-8 of this Appendix for several reasons: the population figures herein do not include the Census undercount; the employment figures herein include those who work at home and those with no fixed place of work. 1 To be allocated proportionately between the growth and non-growth share.

118 MUNICIPALITY: Town of Ajax SERVICE: Roads and Bridges APPENDIX B - INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION - ROADS AND BRIDGES B-34 Potential DC Recoverable Cost Prj. Increased Service Needs Gross Benefit to Post Grants, Subsidies & Net Costs No. Attributable to Description Timing Length Capital Existing Period Developer Contribution Benefiting Residential Non-Residential Anticipated Development (km) Cost Development Capacity Attrib. to New New Share Share Est. ($) (%) ($) (%) Development Development 55% 45% Projects Already Completed Williamson structure at Carruther's Creek new 2-lane structure <2012 1,200,000-0% - 1,200, , ,000 Subtotal 1,200,000-1,200, , ,000 Costs to be Incurred During the Term of the Proposed By-Law Mid-2013 to Mid Audley Road - Taunton to CPR 2-lane rural reconstruction ,500, ,000 16% - 2,100,000 1,155, ,000 2 Harwood Avenue - School Site to Woodcock on widened road Top asphalt ,000 14,500 17% - 70,500 38,775 31,725 3 Rossland Road - West Town Limit to Church 2-lane urban realignment ,980, ,000 6% - 8,420,000 4,631,000 3,789,000 4 Rossland structure at Urfe Creek new 4-lane structure ,035, ,900 6% - 1,908,100 1,049, ,645 5 Church / Rossland intersection signals ,000 12,500 5% - 237, , ,875 6 Rossland structure at Duffins Creek new 4-lane structure ,200, ,900 6% - 3,938,100 2,165,955 1,772,145 7 Riverside - Rossland to Delaney 2-lane urban reconstruction ,090, ,000 19% - 1,690, , ,500 8 Audley Road - CPR to Rossland 2-lane rural reconstruction ,200, ,000 13% - 2,780,000 1,529,000 1,251,000 9 Church Street - Rossland to Hydro Corridor 2-lane urban reconstruction ,340, ,000 10% - 3,920,000 2,156,000 1,764, Church structure at Duffins Creek new 2-lane structure ,530, ,000 10% - 4,077,000 2,242,350 1,834, Hunt Street Extension - MacKenzie to Westney new 2-lane urban construction ,200, ,000 5% - 4,940,000 2,717,000 2,223,000 Subtotal 37,410,000 3,328, ,081,200 18,744,660 15,336,540 Costs to be Incurred Post Proposed By-law Term Mid-2018 to Achilles Road - Audley to Lake Ridge new 2-lane urban construction ,750, ,500 5% - 3,562,500 1,959,375 1,603, Achilles Road - East of Shoal Point to Audley new 2-lane urban construction ,985,000 99,300 5% - 286,707 1,598, , , Audley Road - Highway 2 to Chambers new 2-lane urban construction ,200, ,000 5% - 1,600,000 1,440, , , Chambers Drive - through valley lands new 2-lane urban construction ,390,000 69,500 5% - 1,320, , , Chambers structure at Carruthers Creek new 2-lane structure ,080, ,000 5% - 4,826,000 2,654,300 2,171, Chambers Drive - East of valley to Audley new 2-lane urban construction ,900, ,000 5% 1,950,000 1,755, , , Church Street - between Rossland and Taunton 2 roundabouts ,000 25,000 5% - 475, , , Church Street - Taunton to Hydro Corridor 2-lane urban reconstruction ,380, ,000 11% - 3,920,000 2,156,000 1,764, Finley Avenue Extension - Bayly to Frankcom new 2-lane urban construction ,140, ,000 5% - 2,983,000 1,640,650 1,342, Harwood Avenue - Taunton to Woodcock 4-lane urban widening ,150, ,500 5% - 2,042,500 1,123, , Lake Ridge Road - Bayly to Ontoro Road 2-lane rural reconstruction ,260, ,000 21% - 1,684,000 1,684, , , Range Road - Hoile to Lake Ridge 2-lane rural reconstruction ,580, ,000 21% - 790, , , , Rossland / Pearce intersection signals ,000 12,500 5% - 237, , , Rossland / Riverside intersection signals or roundabout ,000 12,500 5% - 237, , , Rossland Road - Town West Limits to Church 4-lane urban widening ,240,000 62,000 5% - 1,178, , , Rossland Road - Church to Westney 4-lane urban widening ,050, ,000 17% 3,370,000 1,853,500 1,516, Rossland Road - Westney to Audley 4-lane urban widening ,880,000 1,340,000 23% - 4,540,000 2,497,000 2,043, Storm pipe on Salem Road ,000-0% 145, , , ,151 Subtotal 47,635,000 5,041, ,455,928 36,137,272 19,875,500 16,261,772 Beyond Audley structure at CPR new 2-lane structure ,500, ,000 5% - 4,275,000 2,351,250 1,923, Church Street - Delaney to Rossland 4-lane urban widening ,510, ,000 19% - 1,226, , , Church Street - Kingston to Delaney 4-lane urban widening ,560, ,000 13% - 3,080,000 1,694,000 1,386, Rossland Road - Audley to Lake Ridge 4-lane urban widening ,680, ,000 20% - 1,340, , ,000 Subtotal 11,250,000 1,329,000 9,921,000 5,456,550 4,464,450 Total Estimated Capital Costs - Roads & Bridges $ 97,495,000 $ 9,699,600 $ - $ 6,455,928 $ 81,339,472 $ 44,736,710 $ 36,602,762 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]CAP Roads

119 SERVICE: Streetlighting and Sidewalks INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION MUNICIPALITY: Town of Ajax B-35 Less: Potential DC Recoverable Cost Prj. Increased Service Needs Gross Benefit to Grants, Subsidies & Net Costs No. Attributable to Timing Length Capital Existing Developer Contributions Benefiting Residential Non-Residential Anticipated Development (km) Cost Development Attrib. to New New Share Share Est. ($) (%) Development Development 55% 45% Costs to be Incurred During the Term of the Proposed By-Law Mid-2013 to Mid-2018 Multi-use Trails on Regional Roads and Town Roads 1 Salem Road - Bayly to Achilles ,000 27,500 10% 247, , ,375 2 Harwood Avenue - Williamson to Woodcock ,000 11,000 10% 99,000 54,450 44,550 3 Salem Road - Rossland to CPR Bridge ,000 25,000 10% 225, , ,250 4 Salem Road - Kerrison to Rossland ,000 32,500 10% 292, , ,625 5 Taunton Road - Littler Parkette to Audley ,000 12,500 10% 112,500 61,875 50,625 6 Westney Road - Rossland to Taunton ,000 53,000 10% 477, , ,650 Sidewalks on Regional Roads 7 Westney Road - Rossland to Taunton ,000 7,500 5% 142,500 78,375 64,125 Streetlighting on Regional Roads 8 Kingston Road - Harwood to Salem ,000 19,500 5% 370, , ,725 9 Kingston Road at Westney ,000 7,500 5% 142,500 78,375 64, Westney Road - Delaney to Rossland ,000 13,750 5% 261, , , Westney Road - Rossland to Taunton ,000 19,500 5% 370, , , Lake Ridge Road - Bayly to Kingston (1 side only) ,000 7,500 5% 142,500 78,375 64,125 Subtotal (2013 to mid-2018) 3,120, ,750 2,883,250 1,585,788 1,297,463 Costs to be Incurred Post Proposed By-law Term Mid-2018 to 2031 Multi-use Trails on Regional Roads and Town Roads 13 Bayly Street - Westney to Salem ,400, ,000 10% 1,260, , , Harwood Avenue - Taunton to Williamson ,000 23,000 10% 207, ,850 93, Kingston Road - Rotherglen to Salem ,400, ,000 10% 1,260, , , Kingston Road - Salem to Lake Ridge ,400, ,000 10% 1,260, , , Ravenscroft Road - Williamson to Taunton ,000 36,000 10% 324, , , Rossland Road - Audley to Lake Ridge ,000 47,000 10% 423, , , Rossland Road - Church to West Town Limit ,000 22,000 10% 198, ,900 89, Rossland Road - Hilton Gate to Audley ,000 16,500 10% 148,500 81,675 66, Salem Road - Chambers to Achilles ,000 43,000 10% 387, , , Salem Road - Kingston to Chambers ,000 25,000 10% 225, , , Taunton Road - Audley to Lake Ridge ,000 46,000 10% 414, , ,300 Streetlighting on Regional Roads 24 Kingston Road - Salem to Lake Ridge ,000 24,500 5% 465, , , Kingston Road - Rotherglen to Harwood ,000 22,500 5% 427, , , Lake Ridge Road - Kingston to Taunton (1 side only) ,000 15,000 5% 285, , ,250 Subtotal (mid-2018 to 2031) 8,025, ,500 7,284,500 4,006,475 3,278,025 Total Estimated Capital Costs - Streetlighting & Sidewalks $ 11,145,000 $ 977,250 $ - $ 10,167,750 $ 5,592,263 $ 4,575,488 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]CAP Sidewalks, Trails

120 B-36 B-8 MMM Input The MMM Group was retained by the Town to prepare the Transportation Master Plan update and to provide input to the DC Background Study. A copy of their Development Charge input report follows.

121 B-37

122 B-38

123 B-39

124 B-40

125 B-41

126 B-42

127 B-43

128 B-44

129 B-45

130 B-46

131 B-47

132

133 APPENDIX C DEVELOPMENT CHARGE CALCULATION

134

135 C-1 APPENDIX C - DEVELOPMENT CHARGE CALCULATION Table C-1 sets out the DC calculation based on the standard average cost method. For services that are not specifically restricted by a financial service level cap, an adjustment is made to reflect the uncommitted balance in the DC reserve fund as follows: Service DC Reserve Res Non-Res Residential Non-Residential Funds (as of Dec 31, 2012) % % $ $ Administration- Studies ($104,310) 59.0% 41.0% ($61,543) ($42,767) Roads $3,308, % 45.0% $1,819,464 $1,488,653 $3,203,807 $1,757,921 $1,445,886 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]Reserve Summary

136 C-2 TABLE C-1 Town of Ajax DEVELOPMENT CHARGE CALCULATION Municipal-wide Services DC Recoverable Share 2013 $ DC Eligible Cost SERVICE Residential Non-Residential SDU per s.f. $ $ $ $ 1.0 Roads & Bridges 44,736,710 36,602,762 Reserve Fund 1,819,464 1,488,653 42,917,245 35,114,110 6, Streetlighting & Sidewalks 5,592,263 4,575, TOTAL $48,509,508 $39,689,597 $7, DC ELIGIBLE CAPITAL COST $48,509,508 $39,689,597 Gross Population / GFA Growth (sq.ft.) 22,935 10,131,176 Cost Per Capita / Non-Residential GFA (sq.ft.) $2, $3.92 By Residential Unit Type p.p.u Single and Semi-Detached 3.72 $7,868 Apartments 2 Bedroom $4,421 Apartments Bach. & 1 Bdrm 1.26 $2,665 Other Multiples 2.91 $6,155 Town of Ajax DEVELOPMENT CHARGE CALCULATION Municipal-wide Services DC Recoverable Share 2013 $ DC Eligible Cost SERVICE Residential Non-Residential SDU per s.f. $ $ $ $ 4.0 Studies 911, ,655 Reserve Fund (61,543) (42,767) Studies 973, , Fire 1,699,999 1,181, Parks & Recreation 6.0 Parkland Development 11,778, ,946 2, Recreation Indoor Facilities 17,013, ,463 3, ,792,769 1,515,409 5, Library 2,805, , Operations Facilities & Vehicles 1,760,026 1,223, TOTAL $36,032,103 $4,743,935 $6,939 $0.67 DC ELIGIBLE CAPITAL COST $36,032,103 $4,743, Year Gross Population / GFA Growth (sq.ft.) 19,318 7,031,526 Cost Per Capita / Non-Residential GFA (sq.ft.) $1, $0.67 By Residential Unit Type p.p.u Total All Services Single and Semi-Detached 3.72 $6,939 $14, Apartments 2 Bedroom $3,898 $8,319 Apartments Bach. & 1 Bdrm 1.26 $2,350 $5,015 Other Multiples 2.91 $5,428 $11,583 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]Table C-1

137 PRIMARY FACTORS AFFECTING CHANGES IN TOWN OF AJAX DEVELOPMENT CHARGES (2013 VS. 2008) 1. Residential vs. Non-residential Cost Split a) based on ratio of population and employment; b) the Town s population growth is slowing more rapidly than its employment growth; c) to 2031 was 62:38, now is 55:45 for Roads; d) was 73:27, now is 59:41 for Fire, Ops and Studies; e) this reduces the res. charge; f) Parks, Recreation and Libraries remained at 95:5. 2. Net/Gross Population Relationship a) the occupancy decline was 13% of gross population; now is 23%; aging population; b) this means that the Town s service level cap shrinks in relation to growth (the Orangeville OMB and court decision); c) this reduces both res. and non-res. DCs. 3. Service Level Measures a) significant increases since 2008 (inflation, higher land costs, increased facility construction cost); b) Recreation +38%; Fire +33%; Operations +32%; Parks +13%; Library +10%; c) this increases both res. and non-res. DCs. 4. Net Capital Cost for Roads a) Substantial increases in infrastructure costs related to roads, bridges, sidewalks, trails and street lights have incurred since Two main reasons: (i) first, the increases are the result of better information on the projects due to the completion of environmental assessments and/or designs that have identified the need for such things as increased bridge spans, additional storm water management measures, thicker pavement structures and increased environmental mitigation measures. The need for these are the result of revised standards and practices provided by conservation authorities, provincial standards and legislative requirements; (ii) second major factor is the overall increased cost for labour and materials for construction; b) developer contributions up, post period benefit deduction eliminated. 5. Net Capital Costs for Other Services a) Fire s capital program is below the service level cap (Ops as well); b) studies has larger program and larger BTE deductions; c) limited change in BTE % for other services. 6. Occupancy Averages a) res. charge increased 23% for singles, but only 15% for B & 1 BR apartments as a result of a refinement in the analysis of Census data. C-3

138

139 APPENDIX D LONG TERM CAPITAL AND OPERATING COST EXAMINATION

140

141 D-1 APPENDIX D - LONG TERM CAPITAL AND OPERATING COST EXAMINATION This Appendix presents the examination required under s.s.10(2)(c) of the DCA, 1997 of the long-term capital and operating costs for capital infrastructure required for each service to which the by-law relates. D-1 Services As indicated in the Town s proposed development charge by-law, charges are proposed for the following services: (a) (b) (c) (d) (e) (f) Administrative (Development-related Studies) Fire Transportation Park Development Indoor Recreation Facilities Libraries The three sections which follow address, in turn, the operating cost implications of these services, as well as the capital cost implications (medium and long term). The final section completes the cost examination with a brief commentary on its affordability. D-2 Operating Cost Implications (a) (b) Administrative - The capital infrastructure involved, consists of development-related studies. They will be administered and implemented by existing staff and have no additional operating cost implications. Fire - The new headquarters has been operating for a number of years and the necessary staff operating costs are committed. Annual operating costs for the Fire Prevention Vehicle and Pumper Rescue are expected to be approximately $2,000 and $22,500, respectively, for a total of $24,500/year. (c) Roads and Related The roads program to be partially funded by DCs will involve the addition of approximately 7.8 lane km of arterial and collector roads by Based on estimated maintenance and snow clearing costs of $3,238 per lane kilometre, the annual cost to maintain all of the additional roads, when completed, is expected to be $25,250. The cost to maintain the additional 28.6 km of multiuse trails at $984 per km produces an annual cost of $28,100. The 8.1 km of additional sidewalks will cost an estimated $6,100 to maintain based on annual maintenance costs of $749 per km. Finally, the additional 29.7 km of streetlights to be added are expected to cost $43,800 to maintain. (d) Parks Over the next decade, it is anticipated that 67.2 acres of parkland will be developed throughout the Town. This includes Community Parks, Neighbourhood Parks

142 and Parkettes in developing areas. In addition, 10.6 kilometres of trails and related works have been identified, which includes segments of the Duffins and Carruthers Creek trails. The annual cost of maintaining these parks and trails, including labour, materials and equipment is estimated at $3,550 per acre and $984 per km respectively, for a total of $248,990 per year by the end of the ten year period. D-2 (e) (f) Recreation Annual operating expenditures for future phases of the Audley Recreation Centre are forecast to be $1.5 million per year. Annual expenditures include staffing, insurance, utilities, general supplies, etc. These expenditure will be offset by $800,000 in revenue for a net cost of $700,000/year. Net annual expenditures for the A9 Community Centre are estimated at $55,000. Libraries - The new branch at the Audley Recreation Centre will result in increased staffing and other operating costs. These increases have been estimated as follows: Staffing Other 1 Total New Branch in North Ajax $410,000 $123,500 $533,500 D-3 Capital Cost Implications (a) (b) Administrative - Development-related studies do not, of themselves, have initial or subsequent capital cost implications. The works that they address are covered under other service headings. Fire - Capital funding is expected to occur via a combination of capital funding from the current budget, development charge and other reserve funds (existing and to be accumulated), with front-end financing as required. Over the long term, the fire prevention vehicle will need to be replaced in approximately 7 years time and the pumper rescue to be replaced after 15 years. It is anticipated that the Town s capital reserve fund will fund a portion of this long term cost, based on a future contribution schedule to be established. This also applies to the other services. (c) Roads and Related - Capital funding is expected to occur via a combination of capital funding from the current budget, development charge and other reserve funds (existing and to be accumulated), with front-end financing as required. The capital program is significantly weighted towards the first ten years of the period and may require front-end financing, debt issuance and/or possible project deferrals. The balance of the road program is expected to be carried out on a gradual basis over the final eight years, as development charges and supplementary funding sources become available and roads-related needs arise. 1 including materials, supplies, utilities, etc.

143 Over the long term, capital repair and replacement expenditures are anticipated, based on the following general schedule: D-3 Road Resurfacing - every 15 years at a cost of $75,000 to $85,000 per lane km Road Reconstruction - 45 years at a cost of $250,000 to $300,000 per lane km Storm Sewers years at a cost of $200,000/year (d) (e) Parks - The parks development program is to be programmed and scheduled in accordance with the availability of development charges and other funding sources (existing reserve funds, parkland cash-in-lieu, taxation) and the needs of new development. Parkland amenities will require substantial replacement after 20 years. Recreation - Capital funding is expected to occur via a combination of capital funding from the current budget, development charge and other reserve funds (existing and to be accumulated). With respect to long term capital repair and replacement, the following general schedule is expected to apply: Facilities years - substantial replacement (f) Libraries - Capital funding is expected to occur via a combination of capital funding from the current budget, development charge, other reserve funds (existing and to be accumulated), with front-end financing as required. Replacement of library circulation materials is expected to be ongoing with full replacement after 7 years. Buildings are expected to require substantial repair or replacement after 25 years. D-4 Affordability Implications The foregoing sections have examined the long term operating and capital cost implications of the services and infrastructure required for the specific services to which the development charge by-law relates. These requirements are in addition to the operating cost and capital renewal needs of the 2013 base population and existing facilities, although a portion of the capital and operating costs of these new facilities will also be the responsibility of the existing population, based on the benefits to be received. Over the 10 year period, Town population is expected to increase by 13%. Employment is forecast to increase by 30% 2013 to Population and employment floor area increases for the 2013 to 2031 period are forecast to be 15% and 41%, respectively. It is anticipated that revenues from property taxation, development charges (which only cover a portion of development-related capital costs), user charges and other revenue sources will generally increase proportionately, as a result. These revenue increases will be available to the Town on a gradual basis over time, to assist in funding the foregoing, based on the averages below.

144 D-4 Summary of Selected Town Revenue Sources 2012 $/capita Revenue Category $ (2012 pop. of 112,088) Taxes (total Town) $49,941,311 $445 Fees, service charges, donations $10,172,632 $91 TOTAL $60,113,943 $536

145 APPENDIX E DEVELOPMENT CHARGE ECONOMIC IMPACT MATERIAL

146

147 E-1 APPENDIX E - DEVELOPMENT CHARGE ECONOMIC IMPACT MATERIAL The following summarizes the results of previous research conducted by Watson & Associates concerning the potential impact of (increased) development charges on economic development. 1. Many municipalities impose the full residential DC and, in some cases, discount or exempt only a portion of their non-residential (i.e. industrial/commercial) charges, in the interests of attracting more of such development. Their policy position, implicitly or explicitly, is that the rate of industrial and/or commercial development may be impacted by the quantum of their DCs. Their actions suggest that this is not the case with residential development, or at least that the growth pays for growth (to the fullest extent possible) philosophy is expected to be more operative in that case. Residential Development Impacts 2. A change in DC quantum is thought by some to reflect itself directly and automatically on house prices. However, in the strong market experienced in Ajax, house prices reflect demand pressures, more than a simple cost recovery formula. DC increases are absorbed in pricing (and/or land purchase), but may not always be a significant determinant of such pricing, due to overall market dynamics. However, in poor markets, house prices may be unable to fully absorb DC increases. As a result, DC increases may impact profits and/or construction activity. Over a longer period of time, DC increases may result in compensating land price decreases, where the selling price of the final product cannot be increased sufficiently. This is particularly the case where there is a high value-add to the undeveloped land value. 3. The potential impact of DC quantum shifts on the residential housing market is also impacted by the competitive environment and by the price and nature of the housing involved. For example, Ajax is part of the GTA which includes municipalities which impose much higher residential DCs; however, land costs, building forms, the planning process, ease of construction, tax rates, municipal and commercial service levels and lifestyle also vary significantly between those two markets. It is the cumulative effect of these socio-economic forces which determines whether a significant addition to Ajax s residential DCs will diminish its rate of residential growth. This, in turn, raises the question of whether a small reduction in residential growth, resulting from an increase in DC quantum which better equips the Town to fund its growth-related servicing needs, is an acceptable trade-off. 4. Housing projects which are geared to the rental market, affordable or assisted housing, or sites which are expensive to service or remediate, could be impacted by a significant increase in DCs. For example, a DC increase of $7,000 is only 2% of a $350,000 housing price, but at the margin, that may be the difference between an acceptable

148 financial return and one which is not. Thus, there may be housing projects which are made less feasible as a result of a significant increase in DCs. 5. When one plots DC quantums against residential development activity amounts in different municipalities, a direct cause and effect relationship is not apparent. That is, in part, because municipalities which are attractive, high growth areas, are able to impose high DCs as part of maintaining high service levels. Municipalities with lower market appeal tend to moderate DCs in the hopes of encouraging more growth. However, the primary determinants of the amount of residential development in a municipality generally relate more to serviced/zoned land availability, amenity/lifestyle, access to job opportunities, development industry focus, etc. Industrial/Commercial Development Impacts 6. The decision as to whether or not Ajax should establish full cost recovery industrial/ office/institutional development charges and, if so, how high they should be and whether they should vary between industrial and commercial uses, is an important policy issue. Essentially, it involves a trade-off between increased capital contributions (which must otherwise come from property taxes and/or user rates) and a potential deterrent of indeterminate size to new and expanded development activity within the Town. 7. The potential impact of DC quantum shifts on the industrial and commercial market is also impacted by the competitive environment and by the price and nature of the development involved. Land costs, building forms, the planning process, ease of construction, tax rates, municipal and commercial service levels and lifestyle also vary significantly between those two markets. It is the cumulative effect of these socioeconomic forces which determines whether a significant increase to Ajax s industrial and office/commercial DCs will diminish the rate of growth. Since DCs provide a one-time contribution, while property taxes establish an on-going revenue stream to municipalities, this, in turn, raises the question of whether a reduction in industrial and commercial development, resulting from an increase in development charges, improves or diminishes the Town s financial position. Industrial and commercial properties are generally acknowledged as paying more in property taxes than the cost of the municipal services they consume. It is this net positive contribution to municipal revenues that helps support the services and programs the Town provides to its residents. The long-term fiscal sustainability of such municipal services is therefore benefited by maintaining a strong industrial and commercial property tax base. 8. Municipalities are generally more concerned with attracting industrial/commercial development, than with residential development, because the former brings local jobs, commercial services, no increased need for some municipal services, economic stimulus and more highly taxed assessment. E-2

149 In this regard, industrial and head office development is often given added attention, in comparison with retail and service sector employment, which is generally populationrelated. The latter is more captive to urban population centres than industry (for example, the automotive industry, which has located plants in smaller communities such as Alliston, Cambridge and Ingersoll). 9. Industrial site selection analysis generally focuses on non-financial matters, such as transportation access to markets, proximity to labour and suppliers, quality of life/image/ amenity and the suitability of the available real estate. Financial matters are often less important and relate more to land and construction cost, as well as property tax and utility rate costs. DCs are a relatively small component of the latter, but at the margin, can have an impact on a cumulative basis, particularly where property taxes are relatively high. 10. Market optics can play a role in a municipality s ability to attract industrial/commercial development. This often relates more to planning approval matters, but having discounted DCs, can be part of sending out a favourable message once again at a price. 11. Some of the ways that are sometimes used to moderate the negative impacts of nonresidential development charges include transition measures such as: E-3 grandfathering certain types of previous approvals; providing a grace period for the introduction of the charge; phasing in the increase in the charge over a period of years; leaving the indexing of the charge as a discretionary annual decision and one which can be waived by Council in poor economic periods; fully or partially exempting those types of development likely to be most negatively impacted by a DC increase (subject to difficulties involved in distinguishing one type of development from another at the point of DC collection). The Town has, in the past, used some of these measures. It is evident that all of these measures involve sacrificing capital revenues that must be generated from other sources. 12. The tables and figures that follow provide a comparison of DCs in the Greater Toronto Area and Hamilton. Ajax s charges are at the lower end of the GTA scale in the case of retail and industrial development; hence, there is no apparent reason for not fully imposing them.

150 E-4 Single Detached Unit-$ per unit Municipality Lower/ Single Tier Upper Tier Education Total 1 Oakville (GF) $ 23,503 $ 40,458 $ 3,665 $ 67,626 2 Markham $ 22,771 $ 40,428 $ 2,020 $ 65,219 3 Brampton $ 25,519 $ 36,246 $ 2,146 $ 63,911 4 Richmond Hill $ 19,442 $ 40,428 $ 2,020 $ 61,890 5 Milton (GF) $ 15,711 $ 40,458 $ 3,665 $ 59,834 6 King $ 17,189 $ 40,428 $ 2,020 $ 59,637 7 Mississauga $ 20,973 $ 36,246 $ 2,146 $ 59,365 8 Oakville (BB) $ 23,503 $ 31,244 $ 3,665 $ 58,412 9 Aurora $ 15,701 $ 40,428 $ 2,020 $ 58, Caledon $ 19,479 $ 35,806 $ 2,146 $ 57, Newmarket $ 14,652 $ 40,428 $ 2,020 $ 57, Vaughan $ 12,716 $ 40,428 $ 2,020 $ 55, Whitchurch-Stouffville $ 12,282 $ 40,428 $ 2,020 $ 54, East Gwillimbury $ 11,583 $ 40,428 $ 2,020 $ 54, Halton Hills (GF) $ 13,237 $ 36,779 $ 3,665 $ 53, Milton (BB) $ 15,711 $ 31,244 $ 3,665 $ 50, Georgina $ 6,713 $ 40,428 $ 2,020 $ 49, Burlington (GF) $ 8,018 $ 36,779 $ 3,665 $ 48, Halton Hills (BB) $ 13,237 $ 27,565 $ 3,665 $ 44, Clarington $ 15,518 $ 25,419 $ 1,114 $ 42, Brock $ 13,728 $ 25,419 $ 1,964 $ 41, Whitby $ 12,058 $ 25,419 $ 1,964 $ 39, Ajax $ 12,029 $ 25,419 $ 1,964 $ 39, Burlington (BB) $ 8,018 $ 27,565 $ 3,665 $ 39, Uxbridge $ 11,421 $ 25,419 $ 1,964 $ 38, Scugog $ 10,388 $ 25,419 $ 1,964 $ 37, Pickering $ 10,114 $ 25,419 $ 1,964 $ 37, Oshawa $ 7,256 $ 25,419 $ 1,964 $ 34, Hamilton $ 27,706 $ - $ 739 $ 28, Toronto $ 19,412 $ - $ 544 $ 19,956 $/SDU Notes: RESIDENTIAL DEVELOPMENT CHARGES FOR GREATER TORONTO AREA MUNICIPALITIES & HAMILTON (AS AT JUNE 1, 2013) average $ 49,242 median $ 52, Durham municipalities include Region's new charge which is effective July 1, A component of the Mississauga, Richmond Hill, Markham and Vaughan charge has been converted from a per hectare charge to a hypothetical single detached unit - shown as an area-specific charge for the purpose of this chart. H:\Surveys\2013\[GTAH DC June 2013 Ajax.xlsx]Data S1

151 E-5 Notes: NON-RESIDENTIAL DEVELOPMENT CHARGES (RETAIL) FOR GREATER TORONTO AREA MUNICIPALITIES & HAMILTON (AS AT JUNE 1, 2013) Retail - $ per sq.ft. of GFA Municipality Lower/ Single Tier Upper Tier Education Total 1 Richmond Hill $ $ $ 0.52 $ Whitchurch-Stouffville $ 9.36 $ $ 0.52 $ Markham $ 8.72 $ $ 0.52 $ King $ 4.60 $ $ 0.52 $ East Gwillimbury $ 3.16 $ $ 0.52 $ Aurora $ 2.43 $ $ 0.52 $ Vaughan $ 2.15 $ $ 0.52 $ Newmarket $ 1.79 $ $ 0.52 $ Georgina $ 0.38 $ $ 0.52 $ Oakville (GF) $ 9.87 $ $ 1.01 $ Burlington (GF) $ 8.41 $ $ 1.01 $ Oakville (BB) $ 9.87 $ $ 1.01 $ Milton (GF) $ 6.63 $ $ 1.01 $ Burlington (BB) $ 8.41 $ $ 1.01 $ Halton Hills (GF) $ 4.16 $ $ 1.01 $ Milton (BB) $ 6.63 $ $ 1.01 $ Brampton $ 9.61 $ $ 0.65 $ Mississauga $ 8.79 $ $ 0.65 $ Halton Hills (BB) $ 4.16 $ $ 1.01 $ Caledon $ 4.52 $ $ 0.65 $ Scugog $ 6.56 $ $ - $ Clarington $ 5.91 $ $ 0.43 $ Uxbridge $ 6.24 $ $ - $ Brock $ 4.75 $ $ - $ Pickering $ 4.04 $ $ - $ Ajax $ 3.48 $ $ - $ Oshawa $ 3.02 $ $ - $ Whitby $ 2.79 $ $ - $ Toronto $ $ - $ 0.58 $ Hamilton $ $ - $ 0.22 $ $/sq.ft. average $ median $ Durham municipalities include Region's new charge which is effective July 1, A component of the Mississauga, Richmond Hill, Markham and Vaughan charge has been converted from a per hectare charge to a hypothetical single detached unit - shown as an area-specific charge for the purpose of this chart. H:\Surveys\2013\[GTAH DC June 2013 Ajax.xlsx]Data S1

152 E-6 Notes: NON-RESIDENTIAL DEVELOPMENT CHARGES (INDUSTRIAL) FOR GREATER TORONTO AREA MUNICIPALITIES & HAMILTON (AS AT JUNE 1, 2013) Industrial- $ per sq.ft. of GFA Municipality Lower/ Single Tier Upper Tier Education Total 1 Markham $ 8.65 $ $ 0.52 $ Richmond Hill $ 8.42 $ $ 0.52 $ King $ 4.60 $ $ 0.52 $ Oakville (GF) $ 9.87 $ $ 1.01 $ Whitchurch-Stouffville $ 3.22 $ $ 0.52 $ East Gwillimbury $ 3.16 $ $ 0.52 $ Aurora $ 2.43 $ $ 0.52 $ Vaughan $ 2.15 $ $ 0.52 $ Newmarket $ 1.79 $ $ 0.52 $ Oakville (BB) $ 9.87 $ 9.56 $ 1.01 $ Georgina $ 0.38 $ $ 0.52 $ Burlington (GF) $ 3.55 $ $ 1.01 $ Milton (GF) $ 3.43 $ $ 1.01 $ Mississauga $ 7.62 $ 8.32 $ 0.65 $ Halton Hills (GF) $ 1.80 $ $ 1.01 $ Burlington (BB) $ 3.55 $ 9.56 $ 1.01 $ Milton (BB) $ 3.43 $ 9.56 $ 1.01 $ Brampton $ 4.56 $ 8.32 $ 0.65 $ Caledon $ 4.52 $ 8.22 $ 0.65 $ Halton Hills (BB) $ 1.80 $ 9.56 $ 1.01 $ Brock $ 4.75 $ 5.40 $ - $ Pickering $ 4.04 $ 5.40 $ - $ Uxbridge $ 4.00 $ 5.40 $ - $ Ajax $ 3.48 $ 5.40 $ - $ Clarington $ 3.01 $ 5.40 $ 0.43 $ Whitby $ 2.79 $ 5.40 $ - $ Hamilton $ 7.54 $ - $ 0.22 $ Scugog $ 1.91 $ 5.40 $ - $ Oshawa $ - $ 5.40 $ - $ Toronto $ - $ - $ 0.58 $ 0.58 $/sq.ft. average $ median $ Durham municipalities include Region's new charge which is effective July 1, A component of the Mississauga, Richmond Hill, Markham and Vaughan charge has been converted from a per hectare charge to a hypothetical single detached unit - shown as an area-specific charge for the purpose of this chart. H:\Surveys\2013\[GTAH DC June 2013 Ajax.xlsx]Data S1

153 E-7 Residential Development Charges Per Single Detached Dwelling for Greater Toronto Area Municipalities & Hamilton as of June 1, 2013 $ per unit $80,000 $60,000 $40,000 $20,000 $67,626 $65,219 $63,911 $61,890 $59,834 $59,637 $59,365 $58,412 $58,149 $57,431 $57,100 $55,164 $54,730 $54,031 $53,681 $50,620 $49,161 $48,462 $44,467 $42,051 $41,111 $39,441 $39,412 $39,248 $38,804 $37,771 $37,497 $34,639 $28,445 $19,956 $- Upper Tier Lower Tier Education Durham municipalities include Region's new charge which is effective July 1, BB=Built Boundary & GF=Greenfield.

154 E-8 $ per sq.ft. $50 $40 $30 $20 $49.09 $47.57 $46.93 Non-Residential Development Charges Per GFA of Retail Floor Area for Greater Toronto Area Municipalities & Hamilton as of June 1, 2013 $42.81 $41.37 $40.64 $40.36 $40.00 $38.59 $36.19 $34.73 $33.18 $32.95 $31.71 $30.49 $29.94 $28.47 $27.66 $27.47 $23.28 $19.52 $19.30 $19.20 $17.71 $17.00 $16.44 $15.98 $15.75 $13.69 $12.08 $10 $- Upper Tier Lower Tier Education Durham municipalities include Region's new charge which is effective July 1, BB=Built Boundary & GF=Greenfield.

155 E-9 Non-Residential Development Charges Per GFA of Industrial Floor Area for Greater Toronto Area Municipalities & Hamilton as of June 1, 2013 $50 $ per sq.ft. $40 $30 $20 $10 $- $28.43 $28.20 $24.38 $23.46 $23.00 $22.94 $22.21 $21.93 $21.57 $20.44 $20.16 $17.14 $17.02 $16.58 $15.39 $14.12 $14.00 $13.53 $13.39 $12.37 $10.15 $9.44 $9.40 $8.88 $8.84 $8.19 $7.76 $7.31 $5.40 $0.58 Upper Tier Lower Tier Education Durham municipalities include Region's new charge which is effective July 1, BB=Built Boundary & GF=Greenfield.

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157 APPENDIX F TOWN OF AJAX DEVELOPMENT CHARGE BY-LAW (2013)

158

159 F-1 THE CORPORATION OF THE TOWN OF AJAX BY-LAW NO. XX-2013 BEING A BY-LAW OF THE CORPORATION OF THE TOWN OF AJAX WITH RESPECT TO DEVELOPMENT CHARGES. WHEREAS section 2(1) of the Development Charges Act, 1997 (hereinafter called the Act ) enables the Council of a municipality to pass by-laws for the imposition of development charges against land located in the municipality for increased capital costs required because of the increased need for services arising from development in the area to which the by-law applies; AND WHEREAS the Council of The Corporation of the Town of Ajax has made The Town of Ajax Development Charge Background Study, dated June 19, 2013, prepared by Watson & Associates Economists Ltd., available to the public at least two weeks prior to the public meeting and has given Notice in accordance with section 12 of the Act of its intention to pass a by-law under section 2 thereof and has heard all persons who applied to be heard whether in objection thereto or in support thereof; AND WHEREAS the Council in adopting the Development Charge Background Study on September 9th, 2013, directed that development charges be imposed on land under development or redevelopment within the geographical limits of the municipality as hereinafter provided. NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF AJAX enacts as follows: 1. In this by-law, DEFINITIONS (a) (b) (c) (d) (e) Act means the Development Charges Act, 1997, S.O. 1997, c. 27, as amended; agricultural operations means general farming and shall include such uses as breeding and rearing of livestock, including poultry, fowl and fur-bearing animals, the general cultivation of land and associated production, conditioning, processing and storing of field crops, fruits, vegetables and horticultural crops and the selling of such produce on the premises; apartment dwelling means a dwelling consisting of four or more dwelling units, which units have a common entrance from street level and common halls and /or stairs, elevators and yards; bedroom means any room used or designed or intended for use as sleeping quarters including but not limited to, a den, a study, a family room or other similar use; commercial means any non-residential use not defined as industrial in this bylaw;

160 F-2 (f) Council means the council of the Town; (g) detached dwelling means a dwelling containing only a dwelling unit or a dwelling unit and an accessory apartment (h) (i) (j) (k) (l) (m) (n) (o) development includes redevelopment; development charge means a charge imposed pursuant to this by-law adjusted in accordance with Section 13; dwelling unit means a room or group of rooms in a dwelling used or intended to be used as a single independent and separate housekeeping unit containing a kitchen and sanitary facilities, and has a private entrance from outside the dwelling or from a common hallway or stairway inside the dwelling. For the purpose of this by-law, a unit in a retirement residence that may be occupied by a person or persons as his or her residence shall be deemed to be a dwelling unit; farm building means a building or structure used, or designed or intended for use in connection with a bona fide agricultural operation and includes barns, silos and similar structures but excludes a building or structure used or designed or intended for use for residential or commercial uses; grade means the average level of finished ground adjoining a building at all exterior walls; gross floor area means the total floor area, measured between the outside of exterior walls or between the outside of exterior walls and the centre line of party walls dividing the building from another building, of all floors above the average level of finished ground adjoining the building at its exterior walls; hospital means land, buildings or structures used, or designed or intended for use as defined in the Public Hospitals Act, R.S.O. 1990, c. P.40, as amended; industrial means any building used for or in connection with, (i) (ii) (iii) manufacturing, producing, processing, storing or distributing something and includes a greenhouse; research or development in connection with manufacturing, producing or processing something; retail sales by a manufacturer, producer or processor of something manufactured, produced or processed, if the retail sales are at the site where the manufacturing, production or processing takes place; and, (iv) office for administrative purposes, if carried out with respect to manufacturing, processing, producing, storage or distribution and in or attached to the building or structure used for that manufacturing, producing, processing, storage or distribution; (p) non-residential use means land, buildings or structures or portions thereof used, or designed or intended for a use other than a residential use;

161 F-3 (q) (r) (s) (t) (u) (v) (w) nursing home means a nursing home owned by an organized body for a non profit purpose where the use is carried on without profit or gain, the body is registered as a charitable organization and is licensed or approved under a special or general Act but does not include any part of a nursing home containing a dwelling unit. office means a building or part thereof, intended or used for the practice of a profession, conduct of a business or public administration; other dwelling means any residential dwelling which is not a detached dwelling, a semi-detached dwelling, or an apartment dwelling; parking structure means a building or structure provided exclusively for purposes of vehicle parking; personal service means premises or a shop where professional or personal services are provided for gain and where the sale of retail goods, wares, merchandise, articles or things is only accessory to the provision of such services; place of worship means that part of a building or structure used for worship and that is exempt from taxation as a place of worship under the Assessment Act, R.S.O. 1990, c. A.31, as amended; residential care facility" means a publicly or privately funded residential facility having 6 or more beds, not greater than 37 beds, in which persons with physical disabilities, persons who are developmentally delayed, persons with psychiatric disabilities, and/or pensioners are provided care and lodging. (x) retirement residence means a residential building or the residential portion of a mixed-use building which provides accommodation for persons of retirement age, where common facilities for the preparation and consumption of food are provided for the residents of the building, and where each unit or living accommodation has separate sanitary facilities, less than full culinary facilities and a separate entrance from a common hall; (y) (z) (aa) (bb) retirement residence dwelling unit means a unit within a retirement residence residential use means land or buildings or structures or part thereof of any kind whatsoever used, designed or intended to be used as a residence for one or more individuals including a retirement residence but does not include a hotel or motel, a nursing home or a residential care facility; retail means a building or part thereof, not otherwise defined in this by-law, in which goods, wares, merchandise, substances, articles or things are offered or kept for sale at retail directly to the public; semi-detached dwelling means the whole of a dwelling divided vertically both above grade and below grade into two separate dwelling units;

162 F-4 (cc) Town means The Corporation of the Town of Ajax. 2. SCHEDULE OF DEVELOPMENT CHARGES (1) Subject to the provisions of this by-law, development charges against land shall be calculated and collected in accordance with the base rates set out in Schedule B, which relate to the services set out in Schedule A. (2) The development charge with respect to the use of any land, buildings or structures shall be calculated as follows: (a) (b) in the case of residential development, or the residential portion of a mixed-use development, based upon the number and type of dwelling units, in accordance with Schedule B; in the case of non-residential development, or the non-residential portion of a mixed-use development, based upon the number of square feet of gross floor area of such development, in accordance with Schedule B. (3) Council hereby determines that the development of land, buildings or structures for residential and non-residential uses have required or will require the provision, enlargement, expansion or improvement of the services referenced in Schedule A. (4) This by-law does not provide for the phasing in of the base rates in Schedule B beyond the provision that complete building permit applications received prior to October 8, 2013 and issued by December 31, 2013, will be subject to the development charge rate in effect as of September 7, A complete building permit means that all drawings and plans have been submitted in final form and all fees and charges have been paid, including the applicable Town of Ajax development charge. 3. APPLICABLE LANDS (1) Subject to subsections (2), (3), (4) and (7), this by-law applies to all lands in the Town, whether or not the land or use is exempt from taxation under Section 3 of the Assessment Act, 1990, c.a..31. (2) This by-law shall not apply to land that is: (a) owned by and used for purposes of: (i) (ii) (iii) a board as defined in subsection 1(1) of the Education Act; the Town, or any local board thereof; The Regional Municipality of Durham, or any local board thereof; or

163 F-5 (b) used for the purposes of: (i) (ii) (iii) the development of a farm building used for bona fide agricultural operations; a place of worship; or a hospital. (3) This by-law shall not apply to: (a) (b) (c) (d) (e) a temporary use permitted under a zoning by-law amendment enacted under section 39 of the Planning Act; temporary erection of a building without foundation as defined in the Building Code Act for a period not exceeding six (6) consecutive months and not more than six (6) months in any one calendar year on a site; parking structures; 50% of the development area of a nursing home; development where, by comparison with the land at any time within five years previous to the imposition of the charge: (i) (ii) no additional dwelling units are being created; no additional non-residential gross floor area is being added; (f) (g) development of the type referenced in Schedule C, to the extent of the exemption noted, where such development is located within the Downtown Community Improvement Project Area, as defined in Schedule E and as may be amended from time to time. development of the type referenced in Schedule D, to the extent of the exemption noted, where such development is located within the Pickering Village Community Improvement Project Area, as defined in Schedule F and as may be amended from time to time and subject to the approval of a Community Improvement Project Area for the Pickering Village Community Project Area.. (4) Section 2 of this by-law shall not apply to that category of exempt development described in s.s. 2(3) of the Act, namely: (a) (b) the enlargement of an existing dwelling unit or the creation of one or two additional dwelling units in an existing detached dwelling; or the creation of one additional dwelling unit in any other existing residential building. (5) Notwithstanding subsection (4)(a), development charges shall be calculated and collected in accordance with Schedule B where the total residential gross floor

164 area of the additional one or two dwelling units is greater than the total gross floor area of the existing dwelling unit. (6) Notwithstanding subsection (4)(b), development charges shall be calculated and collected in accordance with Schedule B, where the additional dwelling unit has a residential gross floor area greater than, F-6 (a) (b) in the case of a semi-detached dwelling unit, the gross floor area of the existing smallest dwelling unit, and in the case of any other residential building, the residential gross floor area of the smallest dwelling unit contained in the residential building. (7) Section 2 of this by-law shall not apply to that category of exempt development described in s.4 of the Act, and s.1 of O.Reg. 82/98, namely: (a) (b) (c) the enlargement of the gross floor area of an existing industrial building, if the gross floor area is enlarged by 50 percent or less; for the purpose of (a), the terms gross floor area and existing industrial building shall have the same meaning as those terms have in O.Reg. 82/98 under the Act. Notwithstanding subsection (a), if the gross floor area is enlarged by more than 50 per cent, development charges shall be payable and collected and the amount payable shall be calculated in accordance with s.4(3) of the Act. (8) That where a conflict exists between the provisions of this by-law and any other agreement between the Town and the owner, with respect to land to be charged under this by-law, the provisions of such agreement prevail to the extent of the conflict. 4. APPLICATION OF CHARGES (1) Subject to subsection (2), development charges shall apply to, and shall be calculated, paid and collected in accordance with the provisions of this by-law in respect of land to be developed for residential and non-residential uses within the geographical limits of the Town, where, (a) the development requires, (i) (ii) (iii) the passing of a zoning by-law or an amendment thereto under Section 34 of the Planning Act, R.S.O. 1990, cp.13, as amended (the Planning Act ); the approval of a minor variance under Section 45 of the Planning Act; a conveyance of land to which a by-law passed under subsection 50(7) of the Planning Act applies;

165 F-7 (iv) (v) (vi) the approval of a plan of subdivision under Section 51 of the Planning Act; a consent under Section 53 of the Planning Act; the approval of a description under Section 9 of the Condominium Act, 1998 S.O. c. 19, as amended; or (vii) the issuing of a permit under the Building Code Act, 1992 S.O. c. 23, as amended, in relation to a building or structure. (2) Subsection (1) shall not apply in respect of local services as described in s.s.59(2) (a) and (b) of the Act; (3) The development charges imposed on a retirement residence dwelling unit under section 2 shall be payable at the rate applicable to an apartment dwelling unit smaller than 2 bedrooms. 5. LOCAL SERVICE INSTALLATION Nothing in this by-law prevents Council from requiring, as a condition of any approval under s. 41, 51 or 53 of the Planning Act., that the owner, at his or her own expense, shall install or pay for such local services, as Council may require, or that the owner pay for the local connection to a water, sanitary sewer or storm drainage facility related to the approval or within the area to which the approval relates. 6. MULTIPLE CHARGES (1) Where two or more of the actions described in Section 4(1) of this by-law are required before land to which a development charge applies can be developed, only one development charge shall be calculated, paid and collected in accordance with the provisions of this by-law. (2) Notwithstanding subsection (1), if two or more of the actions described in Section 4(1) of this by-law occur at different times, and if the subsequent action has the effect of increasing the need for municipal services as set out in Schedule A, an additional development charge shall be calculated and collected in accordance with the provisions of this by-law. (3) If a development does not require a building permit but does require one or more of the actions described in Subsection 4(1) of this by-law, then the development charge shall nonetheless be payable in respect of any increased or additional development permitted by such action. 7. SERVICES IN LIEU Council may authorize an owner, through an agreement under s.38 of the Act, to substitute such part of the development charge applicable to the owner s development as may be specified in the agreement, by the provision at the sole expense of the owner,

166 of services in lieu. Such agreement shall further specify that where the owner provides services in lieu in accordance with the agreement, Council shall give to the owner a credit, without interest, against the development charge in accordance with the agreement provisions and the provisions of s.39 of the Act, equal to the reasonable cost to the owner of providing the services in lieu, as determined by the Town. In no case shall the agreement provide for a credit which exceeds the total development charge payable by an owner to the Town in respect of the development to which the agreement relates. F-8 8. DEVELOPMENT CHARGE REDEVELOPMENT CREDITS (1) Where residential space is being converted to non-residential space, the development charge equivalent that would have been payable on the residential space shall be deducted from the charge calculated on the non-residential space being added. (2) Where non-residential space is being converted to residential space, the development charge equivalent that would have been payable on the nonresidential space shall be deducted from the charge calculated on the residential units being added. (3) An owner who has obtained a demolition permit and demolished existing dwelling units or a non-residential building or structure in accordance with the provisions of the Building Code Act shall not be subject to the development charge with respect to the development being replaced, provided that the building permit for the replacement residential units or non-residential building or structure is issued not more than 5 years after the date of issuance of the demolition permit and provided that any dwelling units or non-residential floor area created in excess of what was demolished shall be subject to the development charge imposed under section 2. (4) No redevelopment credit shall be made in excess of the development charge payable for a redevelopment. 9. TIMING OF CALCULATION AND PAYMENT (1) Development charges shall be calculated and payable in full in money or by provision of services as may be agreed upon, or by credit granted by the Act, on the date that the first building permit is issued in relation to a building or structure on land to which a development charge applies. (2) Where development charges apply to land in relation to which a building permit is required, the building permit shall not be issued until the development charge has been paid in full to the Town. (3) Notwithstanding subsections (1) and (2), an owner and the Town of Ajax may enter into an agreement to provide for the payment in full of a development charge before building permit issuance or later than the issuing of a building permit.

167 (4) If a development does not require a building permit, the development charge shall be calculated and paid in full at the rate in effect at the time the approval is granted as a condition of the earliest of any of the approvals required for the development and enumerated in Section 4 of this by-law. F BY-LAW REGISTRATION This By-law or a certified copy of this by-law may be registered against the title to any land to which this by-law applies. 11. RESERVE FUNDS (1) Monies received from payment of development charges shall be maintained in a separate reserve fund for each service designated in Schedule A, plus interest earned thereon. (2) Monies received for the payment of development charges shall be used only in accordance with the provisions of s.35 of the Act. (3) Where any development charge, or part thereof, remains unpaid after the due date, the amount unpaid shall be added to the tax roll and shall be collected as taxes. (4) Where any unpaid development charges are collected as taxes under subsection (3), the monies so collected shall be credited to the development charge reserve fund or funds referred to in subsection (1). (5) The Treasurer of the Town shall, commencing in 2014 for the 2013 year, furnish to Council a statement in respect of the reserve funds established hereunder for the prior year, containing the information set out in Sections 12 and 13 of O.Reg. 82/98, or any amending regulation. 12. BY-LAW AMENDMENT OR REPEAL (1) Where this by-law or any development charge prescribed thereunder is amended or repealed by order of the Ontario Municipal Board or by resolution of the Council, the Town Treasurer shall calculate forthwith the amount of any overpayment to be refunded as a result of said amendment or repeal. (2) Refunds that are required to be paid under subsection (1) shall be paid to the registered owner of the land on the date on which the refund is paid. (3) Refunds that are required to be paid under subsection (1) shall be paid with interest to be calculated as follows: (a) interest shall be calculated from the date on which the overpayment was collected to the day on which the refund is paid;

168 F-10 (b) interest shall be paid at the Bank of Canada rate in effect on the date of enactment of this by-law. 13. DEVELOPMENT CHARGE SCHEDULE INDEXING The development charges referred to in Schedule B shall be adjusted annually, without amendment to this by-law, commencing on July 1, 2014, and annually thereafter on July 1, while this by-law is in force, in accordance with the most recent twelve month change in the Statistics Canada Quarterly, Construction Price Statistics. 14. BY-LAW ADMINISTRATION This by-law shall be administered by the Finance Department and the Planning and Development Services Department. 15. SCHEDULES TO THE BY-LAW The following schedules to this by-law form an integral part of this by-law: Schedule A - Designated Municipal Services Under this By-law Schedule B - Schedule of Development Charges Schedule C Exemption Schedule re s.s.3(3)(f) Schedule D Exemption Schedule re s.s.3(3)(g) Schedule E Downtown Community Improvement Project Area Schedule F (proposed) Pickering Village Community Improvement Project Area 16. DATE BY-LAW EFFECTIVE This by-law shall come into force and effect on September 9, EXISTING DEVELOPMENT CHARGE BY-LAW REPEAL By-law as amended, is repealed, effective the date that this by-law comes into force and effect. 18. SEVERABILITY If, for any reason, any provision, section, subsection or paragraph of this by-law is held to be invalid, it is hereby declared to be the intention of Council that all of the remainder of this by-law shall continue in full force and effect until repealed, re-enacted or amended, in whole or in part or dealt with in any other way.

169 F SHORT TITLE This by-law may be cited as the Ajax Development Charge By-law #xx NON-BINDING NATURE Nothing in this by-law or Council s approval of a capital forecast shall be construed so as to commit or require the Town or its Council to authorize or proceed with any specific capital project at any specific time. READ a first and second time this Ninth day of September, 2013 READ a third time and passed this Ninth day of September, 2013 Mayor D-Clerk

170 F-12 SCHEDULE A (To Development Charges By-law xx-2013) DESIGNATED MUNICIPAL SERVICES UNDER THIS BY-LAW 1. Development-related capital growth studies; 2. Fire, including stations, vehicles and equipment; 3. Transportation, including roads, structures, sidewalks, streetlights, traffic signals, and multi-use trails; 4. Operations, including works yards, vehicles, equipment and items related thereto; 5. Parks, including parkland and trail development and equipment and items related thereto; 6. Recreation, including major indoor recreational facilities, furnishings and equipment and items related thereto; 7. Libraries, including furniture, shelving, equipment and items related thereto and including materials acquired for circulation, reference or information purposes by a library board.

171 F-13 SCHEDULE B SCHEDULE OF DEVELOPMENT CHARGES (To Development Charges By-law XX-2013) Service Single or Semidetached Residential Development - Per Dwelling Unit Apartments 2 BR and Larger Apartments Smaller Than 2BR Other Dwellings NON-RESIDENTIAL (per ft² of Gross Floor Area) Development-related Studies $188 $105 $64 $147 $0.10 Fire $327 $184 $111 $256 $0.17 Parks $2,269 $1,275 $768 $1,775 $0.09 Recreation $3,276 $1,841 $1,109 $2,563 $0.13 Libraries $540 $303 $183 $422 $0.02 Operations $339 $190 $115 $265 $0.16 Transportation $7,868 $4,421 $2,665 $6,155 $3.92 Total $14,807 $8,319 $5,015 $11,583 $4.59 H:\AJAX\DC \[Ajax DC Model 2012.xlsx]By-law

172 F-14 SCHEDULE C (To Development Charges By-law xx-2013) EXEMPTION SCHEDULE RE S.S.3(3)(f) PERTAINING TO FULLY OR PARTIALLY EXEMPT DEVELOPMENT USES WITHIN THE DOWNTOWN COMMUNITY IMPROVEMENT PROJECT AREA, AS DEFINED IN SCHEDULE E 1. FULL DEVELOPMENT CHARGE EXEMPTION APPLIES TO: 1.1 office development consisting of two or more storeys of office uses in a building or hotels of at least six storeys 1.2 Commercial development provided that: (i) (ii) the retail/personal service component is located in a non-residential mixed-use building having two or more storeys of office, and the Gross Floor Area of the retail/personal service component does not exceed that of the office component, or, the commercial development is located in a residential mixed-use building 6 storeys in height or greater, and the Gross Floor Area of the commercial uses does not exceed an amount equal to 30% of the total residential Gross Floor area. 1.3 Residential development equal to or greater than 90 units per net hectare, calculated on a block-by-block basis % RESIDENTIAL DEVELOPMENT CHARGE EXEMPTION APPLIES TO: 2.1 Residential development equal to or greater than 25 units per net hectare, but less than 90 units per net hectare, calculated on a block-by-block basis, for those dwelling units for which underground parking is provided in a common area or areas % RESIDENTIAL DEVELOPMENT CHARGE EXEMPTION APPLIES TO: 3.1 Residential development equal to or greater than 25 units per net hectare, but less than 90 units per net hectare, calculated on a block-by-block basis, for those dwelling units for which surface parking is provided.

173 F-15 SCHEDULE D (To Development Charges By-law xx-2013) EXEMPTION SCHEDULE RE S.S.3(3)(g) PERTAINING TO FULLY OR PARTIALLY EXEMPT DEVELOPMENT WITHIN THE PICKERING VILLAGE COMMUNITY IMPROVEMENT PROJECT AREA, AS DEFINED IN SCHEDULE F Program Funding 1. 50% EXEMPTION OF DEVELOPMENT CHARGES FOR ALL ELIGIBLE COMMERCIAL/ RESIDENTIAL OR COMMERCIAL/OFFICE MULTI-STOREY DEVELOPMENT PROVIDED THAT: 1.1 The new residential/commercial or commercial/office development consists of two or more storeys with the ground floor only comprised of any of the following uses: retail stores, restaurants, art gallery, place of entertainment, museum, convenience store, financial institution (bank only) as defined in Zoning By-law % EXEMPTION OF DEVELOPMENT CHARGES FOR ALL DEVELOPMENT PROVIDED THAT: 2.1 The development provides a minimum of 60% of required on-site parking as underground parking and/or above ground deck parking that is appropriately designed to fit in with the proposed development and existing streetscape at the discretion of the Town. 3. PROJECTS WHICH SATISFY BOTH SECTION 1.1 AND 2.1 ABOVE WILL BE ELIGIBLE FOR A FULL EXEMPTION OF THE TOWN OF AJAX DEVELOPMENT CHARGES.

174 F-16 SCHEDULE E (To Development Charges By-law xx-2013) AREA BOUNDARIES FOR THE TOWN OF AJAX DOWNTOWN COMMUNITY IMPROVEMENT PROJECT AREA Schedule A of By-law This plan may be amended from time to time without the need to amend this Schedule E.

175 SCHEDULE F (To Development Charges By-law xx-2013) AREA BOUNDARIES FOR THE TOWN OF AJAX (Proposed) PICKERING VILLAGE COMMUNITY IMPROVEMENT PROJECT AREA F-17 This plan may be amended from time to time without the need to amend this Schedule F.