2019 Development Charges Study Technical Stakeholder Consultation. Wednesday, November 21, 2018 Burnhamthorpe Community Centre

Transcription

1 2019 Development Charges Study Technical Stakeholder Consultation Wednesday, November 21, 2018 Burnhamthorpe Community Centre

2 Today we will discuss... Introductions City DC Survey Results Overview of the Development Charges Act Development Charges Study Process Preliminary Development Forecast Historical Inventories 2019 DC Policies Review Next Steps 2

3 Introductions City of Mississauga Staff: Elizabeth McGee, Manager, Financial Strategies Susan Cunningham, Manager Development Financing & Reserve Management, Rebecca Aza, Policy Analyst, Jahnavi Ramakrishnan, Policy Analyst, Hemson Consulting: Craig Binning, Partner Jackie Hall, Consultant 3

4 DC Survey Results 4

5 DC Survey Results 5

6 DC Survey Results 6

7 DC Survey Results 7

8 DC Survey Results 8

9 DC Survey Results 9

10 DC Survey Results 10

11 DC Survey Results 11

12 DC Survey Results 12

13 DC Survey Results 13

14 DC Survey Results 14

15 DC Survey Results 15

16 DC Survey Results 16

17 DC Survey Results 17

18 DC Survey Results 18

19 DC Survey Results 19

20 DC Survey Results Summary City staff has gained some valuable insight Identified that the City needs to provide a greater understanding about DCs in the public forum How DCs are spent in Mississauga? The difference between Regional and City DCs Strong viewpoints exist in certain areas related to DCs 20

21 DC Survey Results Summary (2) Almost 60% of those that took the survey were developers 50% of those taking the survey considered themselves knowledgeable about DCs Developers are looking for a change in the City s DC rate structure Example, back-to-back and stacked townhouses category The bulk of the residential development respondents develop units related to a high density built form Greater number of non-residential developer respondents build commercial developments 21

22 DC Survey Results Summary (3) City will continue to accept feedback throughout the DC process in developing its recommendations to Council, as part of the 2019 DC Background Study and By-law update 22

23 Development Charges Recap 23

24 What Are Development Charges? Fees imposed on development to fund growth-related capital costs DCs pay for new infrastructure and facilities to maintain service levels Principle is growth pays for growth so that financial burden is not borne by existing tax payers 24

25 Background City Council passed DC By-law in June 2014 that imposed DC rates for eligible City services In June 2019, the 2014 DC By-law will expire In order for the City to continue to collect DCs, a new DC Background Study must be completed and the City must hold at least one public meeting 25

26 Overview of the Development Charges Act (DCA) Service exclusions: Cultural and entertainment facilities, including museums, theatres and art galleries Tourism facilities including convention centre's Parkland acquisition Hospitals Headquarters for general administration of municipalities and local boards 26

27 Eligible Capital Costs Costs to acquire and improve land Building and structure costs Rolling stock with a useful life of 7 years or more Furniture and equipment, excluding computer equipment Development-related studies Engineering fees, contingencies Past expenditures still to be funded through future DCs Interest and financing costs 27

28 Changes to the DCA as of Jan 1, 2016 Transit services are no longer subject to a 10% reduction and based on a planned level of service Asset Management Plan (AMP) must demonstrate that assets are financially sustainable over their full lifecycle Longer consultation period DC Background Study must be made available 60 days prior to the passage of a DC By-law Additional reporting requirements DCs payable at first building permit (for multiple building permits) DC Background Studies must consider Area Specific DCs 28

29 Overview of Study Process Q1-Q Development Forecast Historical service levels Funding envelopes Capital programs DC Policy Review Preliminary DC rates Q Cost of Growth Analysis Draft DC Background Study Consult with Stakeholders Finalize Preliminary Draft Rates Q Finalize DC Study Continued consultation with Stakeholders Q Release DC Study to Public Passage of DC By-law 29

30 Overview of Study Process Development Forecast Anticipated amount, type and location of development must be estimated Calculate 10-Year Historical Service Levels Increase in need may not exceed average level of service immediately preceding background study Reduce capital costs by legislated deductions Identify Growth-related Capital Needs Increase in the need for service attributable to the anticipated development must be estimated Grants/Other Contributions Required Service Discount Replacement/ Benefit to Existing Available DC Reserves Post-Period Benefit Allocation of eligible costs by type of development Costs Eligible for DC Recovery Operating & Replacement Cost Analysis (Incl. AMP) Residential Sector (per unit) Non-Residential Sector (per m 2 of GFA) 30

31 Key Steps in Calculating DCs DEVELOPMENT FORECAST Forecast amount, type and location of development Establish area to which DCs apply Establish planning periods Types of development Residential: population and dwelling units Non-residential: non-residential floor space and employment 31

32 Development Forecast: Key Assumptions Population and employment forecasts based on 2017 Growth Plan (Amendment 2) Region and City staff are currently working on new growth allocations, but nothing has been approved Assumptions for 2019 DC Background Study Based on Council-endorsed population and employment targets from the 2014 DC Study Considers growth in many areas including Ninth Line, strategic waterfront sites, the Hurontario Corridor and the Downtown 32

33 Development Forecast Planning Horizons General services = Engineered services = Council-approved population and employment targets Total Population 829, ,000 Total Employment * 527, ,000 * Includes place of work, no fixed and work at home employment 33

34 Residential Growth Forecast General Services Engineered Services Residential Type At 2018 Growth At 2028 Growth At 2041 Total Occupied Dwellings 243,462 21, ,860 49, ,835 - Ground-Related Units - Apartments 5,120 16,278 11,472 37,902 Total Census Population - Census Population* - Total Pop in New Private Dwellings 731,693 50,646 56, , , , ,400 * Census population excludes an undercoverage of 3.37% 34

35 Non-Residential Growth Forecast General Services Engineered Services Non-Residential Type At 2018 Growth At 2028 Growth At 2041 Employment - Employment in New Space 463,094 31,814 34, ,908 62,679 70, ,773 Non-Residential GFA (m 2 )* 1,760,014 3,389,041 * Non-residential GFA is calculated based on employment in new space 35

36 Historical Inventory Analysis General Service Level Methodology 10-year historical average service level period ( ) Inventories data developed with City staff Quantity and quality of service considered Quantity = number of items Quality = replacement cost of assets 36

37 What is Included in the Inventories? Historical inventories reflect Demolitions of buildings New buildings Updated information for assets (e.g. building gross floor area) to reflect best available information Historical inventory was reconciled with various data sources (e.g., TCA) 37

38 Summary of Historical Inventory Analysis Service 2014 Methodology 2019 Methodology General Government Net Pop. + Emp Net Pop. + Emp Library Net Pop. + HHE Net Pop. Public Works Emp. + HHE Net Pop. + Emp Fire Services* Fire Response Times Parks and Recreation Net Pop. + HHE Net Population Parking Net Pop. + Emp Net Pop. + Emp Development-Related Studies N/A Net Pop. + Emp Transit Emp + HHE and Transit Adjst. Factor Living Arts Centre N/A N/A Net Pop. + Emp and Fire Response Times Planned Level of Service Roads & Related Net Pop. + Emp Net Pop. + Emp * The 2014 DC Study was based on a Fire Response Times approach. For the purposes of the 2019 DC Study response times are being used as input to the determination of services levels, servicing capacity and the development-related capital program 38

39 Rate Structure Comparison Category 2014 DC Study Proposed for 2019 DC Study Comments Residential Other Residential Apartment (700 sf or greater) Small Unit (<700 sf) Single & Semi-Detached Rows and Other Multiples Apartments Small Units - <700 square feet (regardless of built form) Rows and other multiples include stacked and back-toback townhouses is being proposed Non- Residential Industrial Non-Industrial Industrial Non-Industrial No changes are proposed from the 2014 Study 39

40 Exemptions Statutory City, Region, School Board-owned development Creation of additional residential units (subject to the rules of the DCA and associated regulation) 50% industrial expansion Non-Statutory Consistent with the 2014 DC Study, no new non-statutory exemptions will be provided Grant in lieu of payment of DCs will be continued for places of religious assembly for a portion of the facility Any relief from development charges will be at Council s discretion 40

41 Next Steps Inventories will be sent via - Week of November 19 th Next Stakeholder Meeting - December 6, :30pm 3:30pm, Committee Room B, Civic Centre(To be rescheduled) Agenda items include: Response to questions arising from inventories Continued discussion of proposed policies City s growth capital program to be provided following meeting Questions and/or feedback to be directed to: Susan Cunningham Manager, Development Financing & Reserve Management susan.cunningham@mississauga.ca 41

42 Questions? Thank you for your participation Keep informed, visit City s Website: 42