OFF-SITE LEVY BYLAW REVIEW. Public Open Houses March 26 and March 27, 2013

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1 OFF-SITE LEVY BYLAW REVIEW Public Open Houses March 26 and March 27, 2013

2 What are Off-site Levies? Off-Site Levies provide a mechanism to recover capital costs incurred for infrastructure to support growth development. Municipal Government Act (MGA) Division 6 provides framework for Off- Site Levies. Off-site Levy is to be used for ALL or PART of the CAPITAL cost, including cost of land, for the following: Water Sewage Storm Roads Off-Site Levies may be collected only once in respect of land that is the subject of a development or a subdivision. Off-Site Levy must be used for specific purpose for which it is collected. Off-Site Levy Bylaw must set out the object of each levy and indicate how the amount of the levy was determined. 2

3 Development of Off-Site Levy Consultation with stakeholders (UDI, CHBA, etc.) and agreement on the Principles and Tests for Project Cost Allocation. Compile list of Capital Projects for water, sanitary, storm and roads, needed for the next 25 years based on MDP, RSMP, 10 Yr Capital Plans, along with costs, including land cost, and implementation year. Application of the Cost Allocation Principles and Tests for determination of the degree of benefit on a project-by-project basis and clearly documenting the details. Financial Analysis and Modeling for calculation of Off-site Levy Rates. Consultation with stakeholders and public open house. Presentation to Council. Bylaw preparation and approval. 3

4 Development of Off-Site Levy Status Update Stakeholder Consultation Urban Development Institute (UDI) Kirby Finley, Finley Hann Consulting / UDI Chair John Hashem, Box Springs Business Group Malcolm Sissons, IXL Group / Interest in Intensification Development Medicine Hat Chamber of Commerce Lisa Kowalchuk, Executive Director Canadian Home Builders Association (CHBA) Gary Ruff, President Local Chapter Medicine Hat Residents Bruce Symington, City Resident and Tax Payer 4

5 Development of Off-Site Levy Status Update Financial Review - Historic off-site project costs and levy collections (Dec 31, 2011) Cost of Completed Off-site Projects (100% Dev. Portion) Costs still recoverable under the future Off-site Levies Bylaw Difference of above Total Off-site Levy Receipts Off-site Receipts in Reserves as of Dec 31, 2011 to be carried forward to 2013 Bylaw Off-site project costs that have been paid by Developers as of Dec 2011 Off-site project costs paid/payable by the City as part of Municipal Assist $135.6 million $56.9 million $78.7 million $22.8 million $8.5 million $14.3 million $34.2 million As of December 2011, and includes assumed 4% debenture rate. These costs will be carried over to the 2013 Bylaw Update. Portion of off-site project costs that is taken up by the completed developments. Monies collected to December 2011 as off-site levies from developments. These receipts (Roads, Storm and Water) in reserves will be carried over to the 2013 Bylaw Update. Net off-site levy receipts for the infrastructure that is taken up by developments ($ $8.5). Assuming a Municipal Assist of 43.5% since 1996, instead of 38% between ($78.7 m x 43.5%) Additional off-site project costs paid/payable by City over and above Municipal Assist $30.2 million ($78.7 m $14.3 m 34.2 m) City s Contribution to Off-site Project Costs $64.4 million ($78.7 m $14.3) % Developer Contribution to the off-site projects up to December 31, % ($14.3 m / $78.7 m) 5

6 Development Areas The City is subdivided into 26 off-site levy areas. These areas are aggregated into 6 development nodes: Node Areas Included In Nodes 1 Downtown, River Flats, IXL Area 2 Burnside Estates, Cancarb Lands, Box Springs, River Ridge 3 Cimarron / SW Lands / Saamis 7, Canyon Creek, South Vista 11 4 Suntech, Airport 5 Hamptons, Southlands 7, Southlands 6C 6 Ranchlands 4, Ranchlands 3C 6

7 Development Nodes The City is subdivided into 26 off-site levy areas. These areas are aggregated into 6 development nodes: Node Areas Included In Nodes 1 Downtown, River Flats, IXL Area 2 Burnside Estates, Cancarb Lands, Box Springs, River Ridge 3 Cimarron / SW Lands / Saamis 7, Canyon Creek, South Vista 11 4 Suntech, Airport 5 Hamptons, Southlands 7, Southlands 6C 6 Ranchlands 4, Ranchlands 3C 7

8 Development Area Off-site levy rates are based on net development area Gross area Area not developed and where an off-site levy has not previously been collected. Less Environmental Reserves Including severe side slopes, etc. Less Road Right of Way Arterial ROW Equals Reduced Gross Area Less Municipal Reserves At 10% of Reduced Gross Area (excluding intensification areas). Description ha. Gross Development Area 5, Less Environment Reserve Less Municipal Reserve Less ROW Allowance Net Development Area 4, Land Use Type Net Development Area In Next 25 % Years Residential % Non-residential % Residential Intensification % Non-residential Intensification - 0.0% Total % Developed In 25 Years % Developed Beyond 25 Years 3, % Net Development Area 4,

9 Roads Infrastructure Map 9

10 Road Allocation to Benefiting Parties = Off-site $62.90M Less: Off-site Levy Receipts $0.00M = Off-site Balance $62.90M Project Costs $127.93M Less: Special Grants & Contributions $0.00M = Project Balance $127.93M = Future (& Oversizing) $22.69M = City $42.34M The off-site levy balance (due from developers) is allocated to various benefitting areas. 10

11 Water Infrastructure Map 11

12 Water Allocation to Benefiting Parties = Off-site $53.17M Less: Off-site Levy Receipts $0.00M = Off-site Balance $53.17M Project Costs $131.28M Less: Special Grants & Contributions $0.00M = Project Balance $131.28M = Future (Oversizing) $34.81M = City $43.30M The off-site levy balance (due from developers) is allocated to various benefitting areas. 12

13 Sanitary Infrastructure Map 13

14 Sanitary Allocation to Benefiting Parties = Off-site $30.01M Less: Off-site Levy Receipts $0.00M = Off-site Balance $30.01M Project Costs $90.54M Less: Special Grants & Contributions $0.00M = Project Balance $90.54M = Future (Oversizing) $2.95M = City $57.58M The off-site levy balance (due from developers) is allocated to various benefitting areas. 14

15 Storm Water Infrastructure Map 15

16 Storm Water Allocation to Benefiting Parties = Off-site $11.11M Less: Off-site Levy Receipts $0.00M = Off-site Balance $11.11M Project Costs $31.99M Less: Special Grants & Contributions $0.00M = Project Balance $31.99M = Future (Oversizing) $2.98M = City $17.90M The off-site levy balance (due from developers) is allocated to various benefitting areas. 16

17 Summary of Costs Of the $ million of off-site infrastructure in the City s capital plans, $ million is the allocation (benefit) of development Total Cost Grants & Other Contributions Remaining Cost City Third Parties & Oversizing Developer (Growth) Roads Offsite Infrastructure $ 127,925,000 $ - $ 127,925,000 $ 42,335,624 $ 22,688,035 $ 62,901,341 Water Offsite Infrastructure $ 131,275,962 $ - $ 131,275,962 $ 43,296,591 $ 34,813,028 $ 53,166,342 Sanitary Offsite Infrastructure $ 90,543,309 $ - $ 90,543,309 $ 57,583,685 $ 2,952,000 $ 30,007,623 Stormwater Offsite Infrastructure $ 31,989,000 $ - $ 31,989,000 $ 17,899,579 $ 2,977,275 $ 11,112,146 $ 381,733,270 $ - $ 381,733,270 $ 161,115,480 $ 63,430,338 $ 157,187,452 17

18 Legend: Summary of Off-site Levy Rates Areas Included In Nodes Downtown, River Flats, IXL Area Burnside Estates, Cancarb Lands, Box Springs, River Ridge Cimarron / SW Lands / Saamis 7, Canyon Creek, South Vista 11 Suntech, Airport Hamptons, Southlands 7, Southlands 6C Ranchlands 4, Ranchlands 3C Area Ref. # Transportation Charges ($/ha.) Water Charges ($/ha.) Sanitary Charges ($/ha.) Storm Charges ($/ha.) Total ($/ha.) 1.0 $ 30,530 $ 93,703 $ 88,522 $ 44,542 $ 257, $ 30,530 $ 93,703 $ 88,522 $ 44,542 $ 257, $ 30,530 $ 93,703 $ 88,522 $ 44,542 $ 257, $ 88,087 $ 107,164 $ 33,665 $ 24,574 $ 253, $ 88,087 $ 107,164 $ 33,665 $ 24,574 $ 253, $ 114,461 $ 87,138 $ 66,229 $ 9,611 $ 277, $ 40,528 $ 76,382 $ 59,417 $ 10,119 $ 186, $ 40,528 $ 76,382 $ 59,417 $ 10,119 $ 186, $ 88,087 $ 107,164 $ 33,665 $ 24,574 $ 253, $ 114,461 $ 87,138 $ 66,229 $ 9,611 $ 277, $ 153,438 $ 50,189 $ 50,643 $ 9,611 $ 263, $ 30,530 $ 50,522 $ 10,359 $ - $ 91, $ 153,438 $ 50,189 $ 50,643 $ 9,611 $ 263, $ 153,438 $ 50,189 $ 50,643 $ 9,611 $ 263, $ 114,461 $ 87,138 $ 66,229 $ 9,611 $ 277, $ 30,530 $ 50,522 $ 10,359 $ - $ 91, $ 88,087 $ 107,164 $ 33,665 $ 24,574 $ 253,491 Node Areas Included In Nodes Transportation Water Charges Sanitary Storm Charges Charges ($/ha.) ($/ha.) Charges ($/ha.) ($/ha.) Total ($/ha.) 1 Downtown, River Flats, IXL Area $ 30,530 $ 93,703 $ 88,522 $ 44,542 $ 257,297 2 Burnside Estates, Cancarb Lands, Box Springs, River Ridge $ 88,087 $ 107,164 $ 33,665 $ 24,574 $ 253,491 3 Cimarron / SW Lands / Saamis 7, Canyon Creek, South Vista 11 $ 114,461 $ 87,138 $ 66,229 $ 9,611 $ 277,440 4 Suntech, Airport $ 40,528 $ 76,382 $ 59,417 $ 10,119 $ 186,447 5 Hamptons, Southlands 7, Southlands 6C $ 153,438 $ 50,189 $ 50,643 $ 9,611 $ 263,882 6 Ranchlands 4, Ranchlands 3C $ 30,530 $ 50,522 $ 10,359 $ - $ 91,411 18

19 Next Steps Analysis of the feedback received from the Public Open Houses held on March 26 and March 27, 2013 Development & Infrastructure Committee - April 10, 2013 City Council for First Reading - April 15, 2013 City Council for Adoption - May 6,

20 Questions? Thank You 20