Development Charges Update
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- Priscilla Freeman
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1 5.2-1 Development Charges Update Growth Management Committee February 5th, 2015
2 5.2-2 Previous Growth Management Financial Presentations Studies undertaken with Watson & Associates to review growth financing options June 5, 2014 Review of Growth Infrastructure Financing Strategy July 17, 2014 Implications for Growth Finances & Debt 2
3 5.2-3 History of the Big Pipe Historically, Big Pipe systems were designed, built, financed, operated and maintained by the Province Big Pipes had excess capacity South Peel System transferred to the Region of Peel Investments by the Region now needed to increase capacity 3
4 5.2-4 Investing in Infrastructure for Growth Peel Assumes Risk Development Timing OPA/ Secondary Plan Draft Approval Subdivision Approval Building Permit Post Occupancy Service Water: Wastewater Stormwater Management Roads and Related Library Transit Parking Police Health Unit Ambulance Child Care Provincial Offences Act Parks Recreation Fire Administrative Capital Item Treatment Transmission Distribution Local Treatment Transmission (Conveyance) Collection Local Roads Rolling Stock Collection Materials Vehicles Parking Spaces Vehicles Police Communication Equipment Police Officer Equipment Vehicles Parkland Development Vehicles Firefighter Equipment Growth Studies Stage at which ROP currently collects DC Blue Region Yellow Area Municipality Green Area Municipality & Region 4
5 5.2-5 Residential DC Rates Peel s Rate of $36,000 is Comparable 70,000 60,000 Region Area Municipality School Board GO 50,000 26,935 22,559 26,264 20,116 23,527 22,710 17,598 15,218 $ / SFD 40,000 30,000 23,527 11,148 20,000 36,071 40,733 36,071 40,733 35,566 35,627 40,733 40,733 10,000 26,344 25,099 - Peel : Brampton York : Markham Peel : Mississauga York : Aurora Halton - Greenfield: Oakville Peel : Caledon York: Vaughan York: Richmond Hill Halton - Built : Oakville Durham: Oshawa 5
6 5.2-6 Industrial DC Rates Peel is Competitive School Board 300 Area Municipality Region $ / m York: Richmond Hill York : Aurora Halton - Greenfield : Oakville York : Vaughan Peel: Mississauga Halton - Built : Oakville Peel: Brampton Peel : Caledon Durham: Oshawa 6
7 5.2-7 Non-Industrial DC Rates Peel is Competitive School Board 500 Area Municipality Region $ / m York : Richmond Hill York : Aurora York: Vaughan Halton - Greenfield : Oakville Halton - Built : Oakville Peel: Brampton Peel : Mississauga Peel : Caledon Durham: Oshawa 7
8 % of DC from Residential Activity Non- Residential 30% Residential 70% 8
9 5.2-9 Variances From Growth Forecasts 9
10 Post Recession New Normal? 10
11 Debt Levels Maintained Below Provincial Limits 11
12 Council Direction and Reporting Resolution : annual adequacy assessment of DC rates CFO to commence new background study if rate shortfall > 20 % New by-law in 12 months to give development industry time to transition 2014 capital plan: shortfall 15.5 % (draft %) Resolution (June 2014): start new DC Background Study for new by-law in July 2015 BILD notified and in turn notified members 12
13 Key DC Input Considerations Review the distribution of 2031a population and employment forecasts Consider collection of hard service DC for residential properties at time of subdivision approval Review persons per unit (PPU) and floor space per worker (FSW) assumptions Review 750ft 2 small unit size (Mississauga 700ft 2, apartments >700 ft 2 ) Review mix of residential units and non-res GFA by rate type Review and potentially revise agricultural use definition 13
14 DC By-Law review approach Watson and Associates retained for DC background study including rates and review of inputs Consultation with Area Municipalities on potential policy and process changes Early and continued engagement of the development community in sharing of information 14
15 Timelines We Are Here Watson & Associates background study including rates & input review 2015/Q1-2 New DC By-Law Adoption by Council July 2015 Public Meeting and release of Background Study 2015/Q2 Draft Background Study to Senior staff and the Development Community 2015/Q Discussed Potential DC Policy Changes with Regional Staff and Area Municipalities Began 2015 DC Background Study per Council Direction 2014/Q3 Completed DC Rates Adequacy Tests Based on 2014 & 2015 Capital Plans Work Completed 2012 Employment Trends Study (Hemson) 2012/
16 Future Work/After 2015 DC Update Determine distribution of population and employment growth forecasts based on growth projections to 2041 from province Update Regional Master Plans and determine servicing costs based on distribution Plan for update to DC By-Law in late 2017 based on growth forecasts to 2041 Consider further financing options including allocation programs ( Made in Peel solution) 16
17 End 17
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