HomeMy WebLinkAboutFCS-14-054 - Development Charges By-law and Background Study
REPORT TO:Planning and Strategic Initiatives Committee
DATE OF MEETING:
April 28, 2014
SUBMITTED BY: Dan Chapman, Deputy CAO
519-741-2200 x 7347
PREPARED BY:
Ryan Hagey, Director of Financial Planning
519-741-2200 x 7353
WARD(S) INVOLVED: All
DATE OF REPORT: April 14, 2014
REPORT NO.: FCS-14-054
SUBJECT:
Development Charges Background Study and Bylaw
RECOMMENDATION:
THAT the increase in the need for services attributable to anticipated development in the
City of Kitchener be met, subject to sufficient development charge revenues being
generated and other City affordability criteria being met;
THAT the Development Charge Background Study dated April 2014 and the capital
forecasts prepared in conjunction with the Study in accordance with Section 10 of the
Development Charges Act, 1997 be adopted;
THAT future excess capacity identified in the Development Charge Background Study,
dated April 2014, be paid for by development charges or other similar charges;
THAT where grant funding is provided for a growth related project, to the extent possible,
it be used to fund the non-growth portion of the project;
AND FURTHER THAT the proposed Development Charge By-law in the form attached to
Report FCS-14-054 be approved
BACKGROUND:
The Development Charges Act and its associated regulation allow municipalities to impose
development charges to pay for growth-related capital costs that are needed to service new
development.
In order to do so, under the terms of the Act, municipalities must prepare a development charge
background study and pass a bylaw to determine the development charges, taking the following
into account:
A forecast of the amount, type and location of development anticipated in the city for
which development charges can be imposed.
The average capital service levels provided by the municipality in the 10-year period
immediately preceding the preparation of the background study.
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A review of future capital projects, including analysis of gross expenditures, funding
sources and net expenditures incurred or to be incurred by the municipality, to provide
for the expected development.
An examination of the long term capital and operating costs for capital infrastructure for
each service to which the development charges relate.
Development charge (DC) bylaws have a maximum term of five years. Kitchener’s primary DC
bylaw expires on June 23, 2014. In order to update the bylaw, a background study must be
published, and at least one public meeting must be held. In the past few months, Council has
forwarded decisions on the Leisure Facilities Master Plan (report CSD-13-082) and downtown
development charge exemptions (report CAO-14-006) to the DC update process.
The City has retained Hemson Consulting Ltd. to assist with the preparation of the DC
background study and bylaw. A representative from Hemson will be in attendance for this
meeting and to make a presentation to the Committee.
The purpose of this report is to:
Provide the calculated DC rates
Outline the financial consideration of a balanced cash flow
Identify the timing of priority recreation projects as outlined in the Leisure Facilities
Master Plan
Identify a proposed change in the bylaw regarding industrial expansions to relax the
current provisions and create a climate which is more supportive of building expansions
for local industry
REPORT:
2014 Development Charge Rates
The single detached residential DC rate for the Central Neighbourhoods has been calculated to
be $5,480, a 2% increase from the current rate of $5,591. The Suburban single detached
residential DC rate has been calculated to be $10,518, a 7% increase from the current rate of
$9,748.
The non-residential DC rate for the Central Neighbourhoods has been calculated to be
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$16.37/m, a 13% decrease from the current rate of $18.54/m. The Suburban non-residential
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DC rate has been calculated to be $54.17/m, a 12% increase from the current rate of
2
$47.62/m.
These rates are summarized in the table below. More rate details can be found in Tables 1 and
2 which are attached to this report.
Summary of Development Charge Increases
CurrentCalculated
Charge Type Location% Change
RateRate
Residential (Single) Central Neighbourhood $5,591$5,480 -2%
Residential (Single) Suburban $9,748$10,518 8%
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Non-Residential Central Neighbourhood $18.54/m$16.37/m -12%
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Non-Residential Suburban $47.62/m$54.17/m 14%
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Financial Consideration of a Balanced Cashflow
During the term of the 2009 Development Charge Bylaw, growth did not occur as quickly as
originally anticipated. As growth was delayed, the City was not able to achieve the development
charge revenue targets projected in the background study. This led to large projected deficits in
the development charge reserve funds. As part of the 2012 budget process, Council chose to
take action in order to avoid incurring significant reserve fund deficits.
There were two options available to avoid a significant deficit; incurring debt financing or
decreasing expenses. Since reduced revenue (slower growth) was the main cause of the
projected deficits, Council chose to reduce expenses by deferring a number of planned capital
projects to 2015 for reprioritization as part of the next DC background study. Council could
have opted to mitigate the reserve fund deficits by issuing long-term debt, but that would have
increased the City’s debt load, which was already higher than the accepted benchmarks.
In preparing the proposed DC background study and bylaw, staff have been mindful of the
previous decisions made by Council to avoid debt and have a balanced cash flow within the DC
reserve funds. Having a balanced cash flow means that expenses must be aligned with the
annual projection of DC revenues. While this is the ideal theoretical state, it is actually very
difficult to achieve, given the typical timing of development charge revenues and expenses.
Quite often significant expenses must be incurred by the City years in advance of receiving any
related revenues. For example, before houses in a new subdivision can be built (and generate
DC revenues), the City must first incur costs for the installation of the associated roads, water
mains and sewers.
Staff’s primary financial consideration in preparing the DC background study was to have a
balanced cash flow and avoid deficits in the DC reserve funds. As shown in the graph below,
this has largely been achieved over the first 10 years of the forecast period. The DC reserve
funds are beginning with a deficit of approximately $10M, and are projected to remain in deficit
until 2019. The reserve funds are projected to remain in a balanced position until 2021, when
the reserve funds begin to head into a significant deficit by 2025 as a result of expensive
infrastructure investments in advance of associated growth. The reserve funds then improve
over the next few years before ending the forecast period of 2031 in a balanced position. It is
more important that the cash flow be balanced in the short-term compared to the long-term, as
the City will have the opportunity to update the projections with each successive background
study to reflect actual growth patterns and servicing costs (i.e., in 2019, 2024, 2029, etc.). The
commitment of the current background study and by-law is to 2019 at the latest.
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To achieve the goal of a balanced cash flow, staff have employed two primary tactics:
Assumed a more achievable growth forecast (revenue targets are lower and are more
likely to be met)
Deferred the timing of some capital projects (expenses are delayed)
Growth Forecast
The growth forecast has a direct impact on development charge revenues, as the more growth
there is in the City, the more development charge revenues are generated. Over the next five
years, the DC background study assumes growth will be somewhat depressed. Staff have
reviewed recent development trends and assumed a gradual recovery over the next few years.
If development exceeds the forecast, Council could consider accelerating the timing of deferred
capital projects.
Deferred Capital Projects
As the DC background study assumes reduced revenues in the near term, in order to achieve a
balanced cash flow, expenses must also be reduced. This has been achieved by deferring
some capital projects into later years. The deferrals have been made on both engineered
services (e.g. roads, water, sewer) as well as non-engineered services (e.g. indoor recreation,
outdoor recreation, library).
For engineered services, significant project deferrals could reduce the city’s future growth as
these projects are often required to service new lands on the outskirts of existing city
development. In order to accelerate the implementation of engineering projects that would
service specific development lands, a developer could enter into a Credit/Refund Agreement
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with the City. In this situation, the developer would pay to have the engineered services
constructed, and then the City would pay them back in accordance with the Council approved
policy.
Timing of Priority Recreation Projects as Identified in the Leisure Facilities Master Plan (LFMP)
In the fall of 2013, Council approved the Leisure Facilities Master Plan (LFMP). As part of the
LFMP, Council approved a prioritized list of both indoor and outdoor recreation facilities to be
forwarded to the development of the DC background study. This was done in recognition that
there would be a limited amount of DC funding available for growth related recreation facilities,
meaning that it was unlikely that all of the projects could be funded within the 10-year capital
budget.
Based on the LFMP resolution, staff have included the various recreation facilities in the DC
background study. The tables below summarize these facilities by outlining:
the relative priority of recreation facilities according the LFMP
the current timing of the projects in the 2014 capital budget and forecast, and
the proposed timing in the DC background study
It should be noted that the current timing of the projects in the 2014 capital budget and forecast
has been held constant for the past few budget cycles. Through each of these budgets it has
been noted that the timing of DC funded projects should be considered tentative and will be
subject to the results of the next DC background study. As shown in the tables below, the
timing of facilities is relatively similar to the 2014 capital budget and forecast, although
somewhat delayed.
Indoor Recreation Priorities
2014 Capital DC Background
Priority Project
Budget Timing Study Timing
1Doon Pioneer Park Community Centre Addition 2016 2017
2New Southwest Community Centre 2018-2021 2018-2021
3
Mill Courtland Community Centre Addition 2016-2018 2019-2022
4
Southwest District Park Aquatics Facility 2020-2022 2021-2023
5
Rockway Centre N/A 2023
6
Indoor Turf Facility N/A Beyond 2023
Outdoor Recreation Priorities
2014 Capital DC Background
Priority Project
Budget Timing Study Timing
1
Trails (city-wide) 2014-2023 2014-2023
2
Southwest District Park Sports Fields 2014-2015 2014-2015
3Multi-Use Sports Fields 2014-2015 2014-2015
4Grand River Park N/A Beyond 2023
5
Neighbourhood Parks 2014-2023 2014-2023*
6
Soccer Fields 2019-2020 Beyond 2023
*Note: Neighbourhood parks are receiving DC funding in every year of the DC background
study, but not the full amount possible. There is limited funding available for outdoor recreation
projects, and as neighbourhood parks are the fifth priority, their funding has been reduced by
approximately 1/3 to fully fund higher priority projects as established by Council resolution.
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Proposed Change to the DC Bylaw Regarding Industrial Expansions
In the existing DC bylaw (2009-091), there exists a provision whereby an industry can be
granted a DC exemption for one or more enlargements of an existing industrial building, of up to
50% of the gross floor area as it existed on January 1, 1999, or the first industrial buildings to be
built thereafter. This provision is consistent with the wording used by the Region of Waterloo.
As part of the DC study process, staff have been made aware that the wording currently used
by the City of Kitchener and the Region of Waterloo is unique within Ontario. Most other
municipalities either have no time restriction in place (meaning any industrial expansion of less
than 50% does not pay DCs), or restrict expansions to 50% of the existing industrial space in
place at the passage of each DC bylaw.
Staff have amended the wording in the draft DC bylaw to define existing industrial buildings as
the gross floor area as it existed on June 1, 2014. By making this change, staff believe it will
make Kitchener a more attractive place to expand an existing industrial facility instead of
relocating to another municipality. This is because the existing industrial floor space will be
reset to its current size, as opposed to 15 years ago.
Staff have also met with Region of Waterloo staff to encourage similar wording be included in
the Region’s bylaw update, which is currently being considered.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Goal: Financial Management
Strategic Direction: Reduce reliance on taxes
Community Priority: Development
Goal: An aligned strategy
FINANCIAL IMPLICATIONS:
The proposed DC rates are shown in Tables 1 and 2.
COMMUNITY ENGAGEMENT:
Inform and Consult – This report has been posted publicly as part of the agenda to inform the
public about the proposed development charge rates. This meeting has also been advertised
as a public meeting, whereby the public are invited to provide their comments about
development charges. Staff have also met previously with industry stakeholders to garner their
input on the DC background study and have made changes to the background study to reflect
stakeholder feedback.
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO (Finance and Corporate Services)
Attachments
Appendix A - Tables 1 & 2 – Development Charge Rates (Residential and Non-Residential)
Appendix B - Development Charges Background Study
Appendix C - Draft Development Charges Bylaw
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Appendix A
Development Charge Rates (Residential and Non-Residential)
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Appendix B
DEVELOPMENT CHARGESDEVELOPMENT CHARGES
BACKGROUND STUDYBACKGROUND STUDY
City of KitchenerCity of Kitchener
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April, 2014
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TABLE OF CONTENTS
Page
EXECUTIVE SUMMARY.....................................................2
IINTRODUCTION....................................................8
IIAN AVERAGE COST APPROACH TO ALIGN DEVELOPMENT-RELATED COSTS AN
BENEFITS IS PROPOSED..............................................10
A.DEVELOPMENT CHARGES ARE BASED ON THREE
BENEFITTING AREAS..........................................10
B.KEY STEPS WHEN DETERMINING DEVELOPMENT CHARGES
FOR FUTURE DEVELOPMENT-RELATED PROJECTS...................11
IIIDEVELOPMENT FORECAST...........................................15
A.RESIDENTIAL FORECAST.......................................15
B.NON-RESIDENTIAL FORECAST..................................16
IVHISTORICAL CAPITAL SERVICE LEVELS .................................18
VDEVELOPMENT-RELATED CAPITAL FORECAST ...........................20
A.A DEVELOPMENT-RELATED CAPITAL FORECAST IS PROVIDED
FOR COUNCILS APPROVAL....................................20
B.DEVELOPMENT-RELATED CAPITAL FORECAST FOR GENERAL SERVICES..20
C.DEVELOPMENT-RELATED CAPITAL FORECAST FOR ENGINEERING
SERVICES....................................................22
VIPROPOSED DEVELOPMENT CHARGES ARE CALCULATED
IN ACCORDANCE WITH THE DCA .....................................24
A.DEVELOPMENT CHARGE CALCULATION..........................24
B.COMPARISON OF NEWLY CALCULATED DEVELOPMENT CHARGES
WITH CHARGES CURRENTLY IN FORCE IN CITY....................30
VIILONG TERM CAPITAL AND OPERATING COSTS..........................32
A.NET OPERATING COSTS FOR CITY SERVICES TO INCREASE OVER THE
FORECAST PERIOD............................................32
B.LONG TERM CAPITAL FINANCING FROM NON-DEVELOPMENT CHARGE
SOURCES TOTALS $99.1 MILLION................................32
APPENDICES
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1
LIST OF APPENDICES
A.Development Forecast
B.General Services Technical Appendix
C.Engineered Infrastructure Technical Appendix
D.Engineered Infrastructure Project Details
E.Development Charge Reserve Funds
F. Capital and Operating Cost Impact Analysis
G. Development Charges Engineered Services Map
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EXECUTIVE SUMMARY
(i)BACKGROUND
The (), and its associated regulation
Development Charges Act, 1997 DCA(O. Reg.
), allow municipalities in Ontario to recover development-relate
82/98
from new development.
The City of Kitchener is growing and is also an attractive location for a wide variety
of residential and non-residential development. The anticipated development in the
City will increase the demand on municipal services.
The City wishes to continue implementing development charges to
projects related to development throughout the City so that deve
to be serviced in a fiscally responsible manner.
(ii)INTRODUCTION
The and require that a development charge background study
DCAO. Reg. 82/98
be prepared in which development charges are determined with ref
A forecast of the amount, type and location of residential and non-residential
development anticipated in the City;
The average capital service levels provided in the City over the
period immediately preceding the preparation of the background s
A review of future capital projects, including an analysis of gr
funding sources, and net expenditures incurred or to be incurred
to provide for the expected development, including the determination of the
development-related and non-development-related components of the capital
projects; and
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An examination of the long term capital and operating costs for
infrastructure required for each service to which the developmen
by-laws would relate.
This report identifies the development-related net capital cost
attributable to development that is forecast to occur in the Cit
apportioned to types of development (residential; non-residentia
reflects the increase in the need for each service attributable to each type of
development. This report therefore presents development charges for each type of
development.
(iii)DEVELOPMENT FORECAST
The City of Kitchener is growing. Meeting the servicing demands
development will require the City to expand the capacity of muni
infrastructure.
The following is a summary of the projected development for the
General Services Engineered Services
Planning Period Planning Period
20132014 - 20232014 - 2031
Development Forecast
Estimate
Total at
GrowthGrowth Total at 2031
2023
Residential
Total Occupied Dwellings88,183 16,970 105,153 35,001 123,184
Total Population
Census 224,975 41,124 266,099 88,525 313,500
Population In New Dwellings 43,949 90,944
Non-Residential
Employment by Place of Work 102,272 16,543 118,816 31,685 133,957
Non-Residential Building Space (sq.m.) 527,125 1,117,696
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(iv)ALL ELIGIBLE SERVICES ARE INCLUDED IN THE ANALYSIS
The following City services have been included in the developmen
General Services
Library
Fire Protection
Indoor Recreation
Outdoor Recreation
Public Works
Parking
Cemeteries
Growth-Related Studies
Engineering Services
Sanitary Sewer
Roads and Related
Watermains
Engineering Studies
Intensification Allowance
Storm/Watercourse
The City has existing infrastructure for the provision of these services. The
historical service levels for the general services are shown in
(v)THE CITY HAS AN EXTENSIVE DEVELOPMENT-RELATED CAPITAL PROGRAM
PROVISION OF ELIGIBLE SERVICES
The capital infrastructure plans for general services are based on the ten year
planning period of 2014 to 2023. For engineered services a plann
2014 to 2031 is used for capital infrastructure planning.
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General Services
The Citys development-related capital program for general serv
$243.5 million.
Of the $243.5 million development-related capital program, appr
million has been identified as eligible for recovery through dev
Details on the capital programs for each of the general service
Appendix B of this study.
Engineered Services
The Citys development-related capital program for engineered s
$189.8 million and provides for a wide range of infrastructure e
Of the 189.8 million development-related capital program, appro
million has been identified as eligible for recovery through dev
Details on the capital programs for engineered services are provided in Appendices
C and D to this report.
(
vi)DEVELOPMENT CHARGE RATES CALCULATED WITH FULL REFERENCE TO TH
Development charge rates have been established under the parameters of the .
DCA
This study provides the rationale and basis for the calculated r
An average cost approach is used to calculate development charges for all of the
eligible services. A uniform City-wide development charge has be
the general services of library, indoor recreation, outdoor recr
cemeteries, and growth-related studies. Charges calculated for t
services of sanitary servicing, roads and related, watermains, engineering studies, and
storm/watercourse, as well as the general services of fire protection and public works,
are based on development anticipated in the Citys suburban areas. Charges for the
intensification allowance service are calculated based on develo
in the Citys central neighbourhoods.
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Based on the City of Kitchener development forecast, historical service levels, and
development-related capital programs, the following residential
rates have been calculated:
Residential Charge By Unit Type (1)
ServiceSingles &
TownhousesMultiples & DuplexesLodging Houses
Semis
CentralSuburbsCentralSuburbsCentralSuburbsCentralSuburbs
Library$792$792$561$561$437$437$241$241
Fire Protection$0$150$0$106$0$83$0$46
Indoor Recreation$1,776$1,776$1,258$1,258$980$980$540$540
Outdoor Recreation$1,126$1,126$798$798$621$621$342$342
Public Works$0$849$0$601$0$469$0$258
Parking$638$638$452$452$352$352$194$194
Cemeteries$15$15$11$11$8$8$5$5
Growth-Related Studies$119$119$85$85$66$66$36$36
Subtotal General Services$4,466$5,465$3,165$3,872$2,464$3,016$1,358$1,662
Sanitary Servicing$0$1,463$0$1,036$0$807$0$445
Roads And Related$0$2,984$0$2,113$0$1,647$0$907
Watermains$0$212$0$150$0$117$0$65
Engineering Studies$0$251$0$178$0$139$0$76
Intensification Allowance$1,014$0$718$0$560$0$308$0
Storm/Watercourse$0$143$0$102$0$79$0$44
Subtotal Engineered Services$1,014$5,053$718$3,579$560$2,789$308$1,537
TOTAL CHARGE PER UNIT$5,480$10,518$3,883$7,451$3,024$5,805$1,666$3,199
The proposed residential charges are recommended to vary by unit type, reflecting
the different occupancy patterns expected in various unit types and the associated
differences in demand that would be placed on municipal services
Based on the City of Kitchener development forecast, historical service levels, and
development-related capital programs, the following non-resident
charge rates have been calculated:
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Non-Residential Charge per Sq.M.
ServiceCentralSuburbs
Library$0.00$0.00
Fire Protection$0.00$1.00
Indoor Recreation$0.00$0.00
Outdoor Recreation$0.00$0.00
Public Works$0.00$6.25
Parking$5.76$5.76
Cemeteries$0.00$0.00
Growth-Related Studies$1.18$1.18
Subtotal General Services$6.94$14.19
Sanitary Servicing$0.00$10.56
Roads And Related$0.00$23.38
Watermains$0.00$1.43
Engineering Studies$0.00$1.71
Intensification Allowance$9.43$0.00
Storm/Watercourse$0.00$2.90
Subtotal Engineered Services$9.43$39.98
TOTAL CHARGE PER SQUARE METRE$16.37$54.17
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IINTRODUCTION
The , and its associated (
Development Charges Act, 1997 (DCA)Ontario Regulation 82/98O. Reg.
), allow municipalities in Ontario to recover development-relate
82/98
development. This City of Kitchener Development Charges Background Study is presented as
part of a process to establish development charge by-laws that c
.
The City of Kitchener is growing and is also an attractive location for a variety of residential and
non-residential development. The anticipated development in the City will increase the demand
onmunicipal services. The City wishes to implement development charges to fu
projects related to development in the City so that development continues to be serviced in a
fiscally responsible manner.
The and require that a development charges background study be prepared
DCA O. Reg. 82/98
in which development charges are determined with reference to:
A.A forecast of the amount, type and location of development anticipated in the City;
B.The average capital service levels provided in the City over the ten year period
immediately preceding the preparation of the background study;
C.A review of future capital projects, including an analysis of
funding sources, and net expenditures incurred or to be incurred by the City or its
local boards to provide for the anticipated development, including the
determination of the development-related and non-development-rel
components of the capital projects; and
D.An examination of the long term capital and operating costs for the capital
infrastructurerequired for eachservice to which the development charges by-laws
would relate.
This study identifies the development-related net capital costs
development that is forecast to occur in the City. The costs are apportioned to types of
development (residential and non-residential) in a manner that reflects the increase in the need
for each service attributable to each type of development. The study therefore calculates
development charges for each type of development.
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The provides for a period of public review and comment regarding the proposed
DCA
development charges. This process includes considering and respo
by members of the public about the calculated charges. Following completion of this process, and
in accordance with the and Councils review of this study, it is intended that Council will
DCA
pass a new development charge by-law for the City.
The remainder of this study sets out the information and analysis upon which the calculated
development charges are based.
Section II designates the services for which the development charges are proposed and the areas
within the City to which the development charges will apply. It
methodologies that have been used in this background study.
Section III presents a summary of the forecast residential and n
which is expected to occur within the City over a ten year planning horizon, from 2014 to 2023,
for the general services, and over a long range planning horizon
engineering services.
Section IV summarizes the ten year historical average capital service levels that have been
attained in the City which form the basis for the development ch
In Section V, the development-related capital forecast that has
departments is reviewed.
Section VI summarizes the calculation of applicable development
proposed development charges by class and type of development.
SectionVII provides an examination ofthe long termcapitaland operating costs for eachservice
included in the development charge calculation.
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IIAN AVERAGE COST APPROACH TO ALIGN DEVELOPMENT-
RELATED COSTS AND BENEFITS IS PROPOSED
Several key steps are required when calculating any development charge. However, specific
circumstances arise in each municipality which must be reflected
study, therefore, we have tailored our approach to the City of Kitcheners unique circumstances.
The approach to the proposed development charges is focused on p
alignment of development-related costs with the development that necessitates them. This study
uses an average cost approach for all services which the City pr
A. DEVELOPMENT CHARGES ARE BASED ON THREE BENEFITING AREAS
The City provides a range of services to the community it serves and has a sizeable inventory of
facilities, land, infrastructure, vehicles and equipment. The provides the City with
DCA
flexibility when defining services that will be included in the
provided that the other provisions of the and are met. The also permits the
ActRegulationsDCA
City to designate, in its by-laws, the areas within which the de
imposed. The charges may apply to all lands in the City or to other designated development
areas as specified in the by-laws.
For some of the development charge eligible services that the City provides, the full range of
capital facilities, land, equipment and infrastructure is availa
residents therefore have access to all facilities. A widely acce
development-related capital costs for such services is to apportion them over all new
development anticipated in the City. Many of the general serviceslibrary, indoor and outdoor
recreation, parking, cemeteries, and growth-related studiescons
as City-wide services.
Development charges for the engineered services as well as fire protection and public works
services are based on development in the suburban areas as the development-related
infrastructure associated with these services is required to service development in these areas.
Charges for these services are based on forecasts of development
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Charges for the intensification allowance service are based on development forecasts for the
Citys existing built-up central neighbourhoods.
The following services are included in the development charge ca
Planning PeriodService AreaDC Eligible Cost Recovery
General Services
Library2014 - 2023City90%
Fire Protection2014 - 2023Suburban Areas100%
Indoor Recreation2014 - 2023City90%
Outdoor Recreation2014 - 2023City90%
Public Works2014 - 2023Suburban Areas100%
Parking2014 - 2023City90%
Cemeteries2014 - 2023City90%
Growth-Related Studies2014 - 2023City90%
Engineering Services
Sanitary Servicing2014 - 2031Suburban Areas100%
Roads and Related2014 - 2031Suburban Areas100%
Watermains2014 - 2031Suburban Areas100%
Engineering Studies2014 - 2031Suburban Areas100%
Intensification Allowance2014 - 2031Central Neighbourhoods100%
Storm/Watercourse2014 - 2031Suburban Areas100%
These services form a reasonable basis on which to plan and administer the Citys development
charges. It is noted that the analysis of each of these services examines the individual capital
facilities and equipment that make them up. For example, the fir
the fire stations and associated land, vehicles, furniture and e
The resulting development charges for each of the above services would be imposed only against
new development in the service area to which the service relates
B.KEY STEPS WHEN DETERMINING DEVELOPMENT CHARGES FOR FUTURE
DEVELOPMENT-RELATED PROJECTS
Several key steps are required when calculating development charges for future development-
related projects. They are summarized below.
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1.Development Forecast
The first step in the methodology requires that a development forecast be prepared for the ten
year period, 2014 to 2023, and long range period from 2014 to 2031, for each service area. The
forecast of future residential and non-residential development u
in conjunction with the Citys planning staff.
For the residential portion of the forecast, a projection of both the net population growth as well
as the population growth in new housing units is required. The net population growth is
equivalent to the population in new housing units less the change in population in existing units.
The net population growth determines the need for additional facilities and provides the
foundation for the development-related capital program.
When calculating the development charge, however, the development-related net capital costs
are spread over the total additional population that will result from the addition of new housing
units. This population in new units represents the population from which development charges
will be collected.
The non-residential portion of the forecast estimates the amount of building space to be
developed in the City over the planning periods. Factors for flo
employment category are used to convert the floorspace forecast into employment for the
purposes of allocating development-related capital costs.
2.Service Categories and Historic Service Levels
The states that the increase in the need for service attributable t
DCA
development:
... 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
immediately preceding the preparation of the background study...
Historical ten year average service levels thus form the basis for the development charge
calculation. A review of the Citys capital service levels for buildings, land, vehicles, equipment
and so on has therefore been prepared as a reference for the cal
future capital projects that may be included in the development charge can be determined. The
historic service levels used in this study have been calculated based on the period 2004 to 2013.
Historical service levels have not been calculated for the engin
infrastructure for these services is required to meet engineerinstandards.
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3.Development-Related Capital Forecast and Analysis of Net Capit
in the Development Charges
A development-related capital forecast has been prepared by the Citys departments as part of
the study. The forecast identifies development-related projects and their gross and net costs, after
allowing for capital grants, subsidies or other contributions as required by the .The
DCA s.5.(2)
capital forecast provides another cornerstone upon which development charges are based. The
requires that the increase in the need for service attributable to the anticipated
DCA
development may include an increase:
... only if the council of the municipality has indicated that it intends to ensure that such
an increase in need will be met. (s. 5. (1) 3.)
In conjunction with the , referenced above, these sections have the effect of
DCAs. 5. (1) 4.
requiring that the development charge be calculated on the lesser of the historical ten year
average service levels or the service levels embodied in future
development-related capital forecast prepared for this study ens
are only imposed to help pay for projects that have been or are intended to be purchased or built
in order to accommodate future anticipated development. It is no
of development charges merely to have had the service in the pas
demonstrated commitment to continue to emplace facilities or inf
this regard, states that:
Ontario Regulation 82/98, s. 3
For the purposes of paragraph 3 of subsection 5 (1) of the , the council of a
Act
municipality has indicated that it intends to ensure that an inc
service will be met if the increase in service forms part of an
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 appr
For some projects in the development-related capital forecast, a portion of the project may confer
benefits to existing residents. As required by the , these portions of projects and
DCA, s. 5. (1) 6.
their associated net costs are the funding responsibility of the City from non-development charge
sources. The amount of financing for such non-growth shares of projects is also identified as part
of the preparation of the development-related capital forecast.
There is also a requirement in the to reduce the applicable development charge by the
DCA
amount of any uncommitted excess capacity that is available for a service. Such capacity is
available to partially meet the future servicing requirements. Adjustments are made in the
analysis to meet this requirement of the .
Act
Finally, when calculating development charges, the development-r
be reduced by ten per cent for all services except engineered services, such as roads and related
and storm/watercourse infrastructure, and protection services, s).
DCA, s. 5. (1) 8
The ten per cent discount is applied to the other services, e.g. indoor recreation and public
works, and the resulting financing responsibility from non-development charge sources is
identified.
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14
4.Attribution to Types of Development
The next step in the determination of development charges is the allocation of the
development-related net capital costs between the residential an
In the City of Kitchener the allocation is based on the consideration of such factors as projected
changes in population and employment over the planning periods a
for services.
The residential component of the development charge is applied to different housing types based
on average occupancy factors. The non-residential component is applied on the basis of gross
building space in square metres.
5.Final Adjustment
The final determination of the development charge results from a
development-related net capital costs for each service and secto
analysis that takes account of the timing of projects and receipt of development charges. Interest
earnings or borrowing costs are therefore accounted for in the calculation as allowed under the
.
DCA
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15
III DEVELOPMENT FORECAST
The following section provides a summary of the development forecasts that have been used as
inputs to the development charges calculation for the City. A more detailed summary of the
forecasts, including tables illustrating historic trends and forecast results, is provided in Appendix
A.
The development forecasts were prepared in conjunction with the
Development charges for the general services of library, indoor recreation, outdoor recreation,
parking, cemeteries and growth-related studies are based on City-wide forecasts. Charges for the
engineered services of sanitary servicing, roads and related, wa
storm/watercourse, as well as the general services of fire prote
on forecasts of development in the Citys suburban areas. Charges for the intensification
allowance are based on development forecasts for the Citys cent
A.RESIDENTIAL FORECAST
Development charges are levied on residential development as a charge per new unit. Therefore,
for the residential forecast, a projection of both the population growth as well as the population
in new housing units is required.
The population growth determines the need for additional facili
foundation for the development-related capital program.
When calculating the development charge, however, the developme
costs are spread over the total additional population that occupy new housing units. This
population in new units represents the population from which dev
collected.
The total ten-year population in new units is forecast at 43,949 for the City, 38,512 for the
suburban areas, 3,658 for the central neighbourhoods, and 1,779 for the downtown. The total
long-range population in new units to 2031 is forecast at 90,994 for the City, 80,941 for the
suburban areas, 7,172 for the central neighbourhoods, and 2,830
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16
B.NON-RESIDENTIAL FORECAST
Development charges are levied on non-residential development as a charge per unit of gross
floor area (GFA). As with the residential forecast, the non-residential forecast requires
projection of employment growth as well as a projection of the employment growth associated
with new floorspace in the City
In order to estimate the number of employees in new floorspace,
worker (FSW) for each employment category is then applied to the new floorspace forecast. The
following FSW assumptions have been used:
2
Industrial85 m per employee
2
Commercial/Office35 m per employee
2
Institutional50 m per employee
The Citys employment growth is estimated at 16,543 jobs over the ten year period to 2023 and
31,685 jobs over the long-range period to 2031. The total ten year GFA growth is forecast at
527,125 square metres for the City, 417,965 square metres for the suburban areas and 76,940
square metres for the central neighbourhoods. The total long r
forecast at 1,117,696 square metres for the City, 883,260 square metres for the suburban areas
and 164,922 square metres for the central neighbourhoods.
Table 1 summarizes the development charge development forecast f
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18
IVHISTORICAL CAPITAL SERVICE LEVELS
The and require that the development charges be set at a level no higher
DCAO. Reg. 82/98
than the average service level provided in the City over the ten year period immediately
preceding the preparation of the background study, on a service
For non-engineered services (library, fire protection, etc.) the
documenting service levels for the preceding ten years: in this case, for the period 2004 2013.
Typically, service levels for non-engineered services are measured as a ratio of inputs per capita
or inputs per capita and employment. With engineered services such as watermains and roads
engineering and environmental/regulatory standards are used in l
requires that when defining and determining historic service le
O. Reg. 82/98
and of service be taken into consideration. In most cases, the serv
quantityquality
initially established in quantitative terms. For example, servic
in terms of square feet per unit. The qualitative aspect is introduced by the consideration of the
replacement monetary value of the facility or service. In the case of buildings, for example, the
cost would be shown in terms of dollars per square foot to replace or construct a facility of the
same quality. This approach helps to ensure that the development-related capital facilities that
are to be charged to new development reflect not only the quantity (number and size) but also
the quality (value or cost) of service provided by the City in the past. Both the quantitative and
qualitative aspects of service levels used in the current analysis are based on information
provided by City staff. This information is generally based on historical records and the Citys
and surrounding municipalities experience with costs to acquire
equipment and infrastructure.
Table 2 summarizes service levels for all services included in t
Appendix B provides detailed historical inventory data upon whic
levels is based for the general services.
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TABLE 2
CITY OF KITCHENER
SUMMARY OF AVERAGE HISTORICAL SERVICE LEVEL
S
2004 - 2013
Historical Average
ServiceService Level
1.0LIBRAR$329.84per capita
Y
Buildings$217.12per capita
Land$30.10per capita
Materials$78.45per capita
Furniture And Equipment$4.17per capita
2.0FIRE PROTECTION$168.55per capita & employment
Buildings$78.94per capita & employment
Buildings 0.25sq.ft./capita & employment
Land$28.42per capita & employment
Land 0.25ha/10,000 capita & employment
Vehicles$38.40per capita & employment
Equipment And Gear$22.79per capita & employment
3.0INDOOR RECREATION$1,401.16per capita
Buildings$1,182.53per capita
Buildings 4 .21sq.ft./capita
Land$218.63per capita
4.0OUTDOOR RECREATION$618.96per capita
Developed Parkland$300.94per capita
Developed Trails$71.20per capita
Park Facilities$169.54per capita
Park Buildings & Fleet$77.29per capita
5.0PUBLIC WORKS$333.98per capita & employment
Buildings$131.94per capita & employment
Buildings 0.69sq.ft./capita & employment
Land$74.39per capita & employment
Land 0.62ha/10,000 capita & employment
Vehicles & Equipment$127.65per capita & employment
6.0PARKING$408.44per capita & employment
Parking Spaces$228.22per capita & employment
Parking Spaces (Land)$179.39per capita & employment
Parking Metres$0.83per capita & employment
7.0CEMETERIES$98.63per capita & employment
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20
VDEVELOPMENT-RELATED CAPITAL FORECAST
The requires the Council of a municipality to express its intent to
DCA
facilities at the level incorporated in the development charges
Section II, states that:
Ontario Regulation 82/98, s. 3
For the purposes of paragraph 3 of subsection 5 (1) of the , the council of a municipality has
Act
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 expre
has been approved by the council.
A.A DEVELOPMENT-RELATED CAPITAL FORECAST IS PROVIDED FOR COUNCIL
APPROVAL
Based on the development forecasts summarized in Section III and detailed in Appendix A, staff
of the City, in collaboration with the consultant, have developed a development-related capital
forecast which sets out those projects that are required to service anticipated development. For
all general services the capital plan covers the ten year period
engineering services the capital plan covers the long range peri
It is recommended that Council adopt the development-related cap
the purposes of the development charges calculation. It is assum
and forecasts will continue to bring forward the capital projects presented here as they will be
needed to service the anticipated development in the City. It is
changes to the forecast presented here may occur through the Citys normal capital budget
process.
B.DEVELOPMENT-RELATED CAPITAL FORECAST FOR GENERAL SERVICES
A summary of the ten-year development-related capital forecast f
in Table 3. The table shows that the gross cost of the Citys capital forecast is estimated to be
$243.5 million. Grants or subsidies in the amount of $18.4 milli
the net cost of the development-related capital program is $225.
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22
Of this $225.1 million net capital cost, approximately $57.2 million (25 per cent) is related to
capital works for the indoor recreation service. Another $52.6 mper cent) is required
to fund public works infrastructure. The cost of adding new outdoor recreation and library
infrastructure totals $39.5 million (18 per cent) and $35.9 million (16 per cent) respectively.
New infrastructure for parking adds another $33.3 million (15 per cent) to the capital forecast.
That portion of the Citys forecast which relates to the provision of development-related studies
is referred to as growth studies. It amounts to $2.4 million, or 1 per cent of the total. Finally, The
cost of adding new cemeteries and fire protection infrastructure totals $2.4 million (1 per cent)
and $1.9 million (1 per cent) respectively
This capital forecast incorporates those projects identified to
anticipated in the next ten years. It is not implied that all of these costs are to be recovered from
new development by way of development charges (see the following Section VI for the method
and determination of net capital costs attributable to developme
forecast may relate to replacement of existing capital facilities, to shares of projects that benefit
the existing community, or to development anticipated to occur beyond the 20142023 planning
period. In addition to these reductions, the amounts shown on Table 3 have not been reduced
by the ten per cent deduction for various soft services as reqof the .
s. 5 (1) 8 DCA
After these reductions the remaining development-related capital costs are brought forward to
the development charge calculation. Further details on the capital plans for each individual
general service category are available in Appendix B.
C.DEVELOPMENT-RELATED CAPITAL FORECAST FOR ENGINEERING SERVICES
Table 4 presents a summary of the development-related capital forecast for the Citys engineering
infrastructure over the period 2014 to 2031. The table shows that the gross cost of the Citys
engineered service capital forecast is estimated to be $189.8 million. Grants and subsidies in the
amount of $1.3 million have been identified. Thus, the net cost
capital program is $188.5 million.
Further details on the development charges calculations for the engineering services are available
in Appendix C. Details on individual projects in the development-related capital forecast are
provided in Appendix D.
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24
VIPROPOSED DEVELOPMENT CHARGES ARE CALCULATED IN
ACCORDANCE WITH THE DCA
This section summarizes the calculation of development charges f
the resulting total development charge by type of development. For all services, the calculation
of the unadjusted per capita (residential) and per square metr
reviewed. Adjustments to these amounts resulting from a cashflow analysis that accounts for
interest earnings and borrowing costs are also discussed.
For residential development, an adjusted total per capita amount is applied to different housing
types on the basis of average occupancy factors. For non-residential development the proposed
development charge rates are based on gross floor area (GFA) of
It is noted that the calculation of the development charges does not include any provision for
exemptions required under the , for example, the exemption for enlargements of up to
DCA
fifty per cent on existing industrial buildings. Such legislated exemptions, or other exemptions
which Council may choose to provide, will result in a loss of development charge revenue for the
affected types of development. Any such revenue loss may not be offset, however, by increasing
other portions of the calculated charge.
A.DEVELOPMENT CHARGE CALCULATION
1. Unadjusted Residential and Non-Residential Development Charge
A summary of the unadjusted residential and non-residential development charges for the
general services is presented in Table 5. Further details of the
general service category are available in Appendix B.
The capital forecast for the general services incorporates those
to development anticipated in the next ten years. However, not all of the capital costs are to be
recovered from new development by way of development charges. Table 5 shows that $56.4
million of the capital forecast relates to replacement of existing capital facilities or for shares of
projects that provide benefit to the existing community. Another share of the forecast, $72.9
million, is either attributable to development beyond the 2023 period (and can therefore only
be recovered under future development charge studies) or represents a service level increase in
the City. In addition, $17.4 million has been committed to projects in the capital forecast from
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26
existing development charge reserve funds. Finally, the capital
reduced by the legislated ten per cent discount, or $14.0 million, for various soft services as
mandated by of the .
s. 5 (1) 8. DCA
The total net development related capital costs eligible for rec
results in unadjusted development charges for each service expressed as a per capita charge for
residential development and a charge per square metre of new gro
residential development. These unadjusted development charges ar
Table 5.
Table 6 presents the unadjusted residential and non-residentia
engineering infrastructure. It shows that of the total net cost of the capital program, estimated
to be $188.5 million, $705,000 has been committed to the program from existing development
charge reserve funds collected from prior development and $32.5 million is considered to replace
existing infrastructure or to benefit the existing community. The remaining $155.3 million is
carried forward to the development charge calculation. Of this cost, $123.7 million has been
allocated to new residential development and $31.9 million has been allocated to new non-
residential development.
The allocation of engineering service costs yields unadjusted ch
as a per capita charge for residential development and a charge
residential development. Further details of the calculations for
available in Appendix C. Additional details about specific proje
provided in Appendix D.
2. Adjusted Residential and Non-Residential Development Charge R
Final adjustments to the unadjusted development charge rates are made through a cashflow
analysis. The analysis, details of which are included in Appendi
borrowing cost and interest earnings associated with the timing of expenditures and development
charge receipts for each service category. Table 7 summarizes th
the residential component of the development charge rate. As sho
rate is increased by $262 from $3,244 per capita to $3,506 per capita after the cashflow analysis.
Table 7 also provides the calculated rates by residential unit w
ranging from a high of $10,518 per unit for single and semi detached units in the suburban areas
to a low of $1,666 per unit for lodging units in the central nei
The calculated unadjusted and adjusted non-residential developme
2
in Table 8. The calculated adjusted rate for new non-residential development is $54.17 per m
2
in the suburban areas and $16.37 per m in the central neighbourhoods, which represents an
222
increase of $11.60 per m and $7.17 per m from the unadjusted rates of $42.57 per m and $9.20
2
per m respectively.
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30
B.COMPARISON OF 2014 NEWLY CALCULATED DEVELOPMENT CHARGES WITH
CHARGES CURRENTLY IN FORCE IN CITY OF KITCHENER
Table 9 presents a comparison of the newly calculated residential and non-residential
development charges with currently imposed development charge ra
It demonstrates that the newly calculated residential development charge rates are increasing
in the suburban areas between 5 per cent and 11 per cent depending on the unit type. In the
central neighbourhoods residential charges are decreasing by between 1 per cent and 5 per cent
except for townhouse units, which are increasing by 1 per cent.
The newly calculated development charge rate for non-residential
22
$6.55 per m, or 14 per cent, in the suburban areas and decreases by $2.17 p, or 12 per cent,
in the central neighbourhoods.
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32
VIILONG TERM CAPITAL AND OPERATING COSTS
This section provides a brief examination of the long term capit
capital facilities and infrastructure to be included in the deve
examination is required as one of the features of the
Development Charges Act, 1997.
A.NET OPERATING COSTS FOR CITY SERVICES TO INCREASE OVER THE FOR
PERIOD
Table 10 summarizes the estimated increase in net tax supported
will experience for additions associated with the planned capita
included in Appendix F.
As shown in Table 10, by 2023 the Citys net tax supported operating costs are estimated to
increase by about $4.8 million. The most significant portion of
costs arising from increased indoor and outdoor recreation, and
B.LONG TERM CAPITAL FINANCING FROM NON-DEVELOPMENT CHARGE SOURCE
TOTALS $99.1 MILLION
Table 10 also summarizes the components of the development-related capital forecast that will
require funding from non-development charge sources as discussed above in Section VI. Of the
$352.2 million 2014 to 2023 net capital forecast, about $99.1 million will need to be financed
from non-development charge sources over the next ten years. This includes about $14.0 million
in respect of the mandatory ten per cent discount required by th for soft services and
DCA
about $85.1 million for shares of projects related to capital re
shares of projects that provide benefit to the existing community. This is largely related to the
general services development-related capital programs which have
to existing shares.
Council is made aware of these factors so that they understand the financial implications of the
quantum and timing of the projects included in the development-related capital forecast in this
study.
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34
APPENDIX A
DEVELOPMENT FORECAST
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35
APPENDIX A
DEVELOPMENT FORECAST
This appendix provides the details of the development forecast that was used to
prepare the 2014 for the City of Kitchener.
Development Charges Background Study
The forecast method and key assumptions are discussed. The results of the forecasts
are presented in the following tables:
Historical Development
A.1 Population, Dwellings & Employment
A.2 Housing Activity Completions
A.3 Housing Activity Building Permits
A.4 Households by Period of Construction Showing Household Size
Forecast Development
A.5 City Population, Household & Employment Forecast Summary
A.6 City Population & Household Growth Summary
A.7 Housing Growth by Unit Type
A.8 Population in New Housing by Unit Type
A.9 Sub-Municipal Housing Growth
A.10 Non-Residential Space Forecast
A.11 Sub-Municipal Employment Growth
2
A.12 Sub-Municipal Floorspace Forecast by Type (m)
A.FORECAST AND KEY ASSUMPTIONS
The () requires the City to estimate the anticipated
Development Charges ActDCA
amount, type and location of development for which development charges may be
imposed. The development forecast must cover both residential and non-residential
development and be specific enough with regards to quantum, type, location and
timing of development to allow the City to prepare a reasonable
related capital program. A ten year development forecast, from 2014 to 2023, has
been used for all the development charge eligible general services in the City. For
engineered services, a long-term forecast from 2014 to 2031 has been prepared.
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The development forecast is based on estimates of development occurring within the
Citys approved development areas. This is consistent with Provi
that require development charges forecasts be based on areas approved for
development in a municipalitys official plan.
The forecasts used in this DC Study are consistent with the long-term population
and employment targets established for the City of Kitchener by the Region of
1
Waterloo.
Development charges for the general services of Library, Indoor Recreation, Outdoor
Recreation, Parking, Cemeteries and Growth-Related Studies, are based on the City-
wide forecasts shown below. For the purposes of calculating a development charge
the City-wide forecasts exclude growth and development that is projected for the
downtown core in which, under Part 1 s.2 (3) of the Citys development charges by-
law, development is exempt from development charges. Costs assoc
providing the above services to development in the downtown core have also been
removed from the development charge calculation on a pro-rata basis.
Charges for the engineered services of Sanitary Servicing, Roads and Related,
Watermains, Engineering Studies, and Storm/Watercourse, as well as the general
services of Fire Protection and Public Works, are based on forecasts of development
in the Citys suburban areas. Charges for the Intensification Allowance are based on
development forecasts for the Citys central neighbourhoods (excluding the
downtown core exemption area).
The previous development charge background study included downtown
development and downtown development-related capital costs in the development
charge calculations. It is noted that the treatment of the downtown in this study has
no effect on the quantum of the calculated development charges.
1
That is, a population target of 313,000 and an employment target of 130,000 for 2029
(see Regional Official Plan, 2010, Table 1, p.11). It is noted that this population target includes a
census undercount estimate of 4%. The equivalent census popula
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B.HISTORICAL DEVELOPMENT IN THE CITY
The City has experienced steady and sustained population, household and
employment growth over the last ten years. The growth was fuelled by the Citys role
as the largest urban area in a Region that has both a strong loc
experienced high levels of net in-migration.
Historical growth and development figures presented here are based on Statistics
Canada census data and the Citys historical building permit data to September
2013. A Census-based definition of population is used for the purposes of the
development charges study. This definition does not include the Census net
undercoverage which is typically included in the definition of total population
used by the City in its and by the Region in its Official
Growth Management Plan
Plan. For development charges purposes, a ten year historical period of 2004 to 2013
is used for calculating service levels. Since 2011 was the year of the last Census,
figures for 2012 and 2013 are estimated.
Table A.1 shows that population growth across the City remained steady between
1.3% and 1.5% over the historical period to 2011. The number of
the City increased at slightly higher rate than the population over the same period.
This difference is the result of a decline in the average number of persons residing in
dwelling units.
Total employment numbers used in Table A.1 are based on Statistics Canada place
of work data. Place of work employment figures record where people work rather
than their place of residence. Table A.1 shows that the Citys employment grew over
the last decade, from about 88,303 jobs in 2001 to about 99,251
Citys activity rate (the ratio of employment to population) has decreased in recent
years as a result of the rate of population growth being higher than that of
employment growth.
The amount of new floorspace added in the City has fluctuated from year to year.
Between 2004 and 2012, the average annual amount of new floor sp
2
76,033 m. New space has fallen below this average for the last three years (2011-
2013).
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Details on housing unit growth in the City since 2004 are provided in Table A.2.
The overall market share of single-detached, semi-detached, row and other types of
ground-oriented units has remained steady over the last 10 years (approximately 56%
for singles and semis and 23% for rows). However, the apartment
has fluctuated greatly over the same period. Apartment construct
much as 46% of all units in 2013 and as low as 7% of all units i
Similar trends may be seen in the building permit data show in Table A.3.
Table A.4 provides details on historical occupancy patterns in the City. The overall
average occupancy level in the City is 2.55 persons per housing unit (ppu).
Occupancy levels for recently constructed units (2001-2011) are higher than the
overall average and are used in the development charges calculation since they
better reflect the number of people that will be residing in new
average ppu of single and semi detached units built in the City in the period 2001 to
2011 is 3.29. Average ppus for recently constructed row housing and apartments are
2.33 and 1.82 respectively.
C.FORECAST METHOD AND RESULTS
This section describes the method used to establish the development forecast for the
periods 2014 to 2023 and 2014 to 2031.
Development charges are levied on residential development as a charge per new
unit. Therefore, for the residential forecast, a projection of b
population
2
as well as the is required.
growthpopulation in new housing
The determines the need for additional facilities and
population growth
provides the foundation for the development-related capital program.
When calculating the development charge, however, the developmen
related net capital costs are spread over the total additional population that
occupies new housing units. This represents the
population in new units
population from which development charges will be collected.
2
Commonly referred to as net population growth in the context of development charges.
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39
Development charges are levied on non-residential development as a charge per unit
of gross floor area (GFA). As with the residential forecast, the non-residential
forecast requires both a projection of as well as a projection of the
employment growth
in the City.
employment growth associated with new floorspace
1.Residential Forecast
The residential forecast for the City is anchored on the population target of 313,000
in 2029 established by the Region of Waterloo (see above).
The residential development charges calculation is based on a fo
population growth and population growth in new housing units for the City and in
each of the areas to which the charges apply: the central neighbourhoods and the
suburban areas. Population growth in the downtown exemption area has been
removed from the forecast for development charge calculation purposes. A detailed
analysis conducted by the City as part of its (KGMS),
Growth Management Strategy
including annual , provide information on the Citys
KGMS Monitoring Reports
capacity to accommodate a share of the Regions housing unit forecast by type.
The reveals that the City can currently accommodate
2013 KGMS Monitoring Report
approximately 45,700 new single-detached, semi-detached, row, and other multiples
units, of which an estimated 15,650 units are single- and semi-d
(mostly in the suburban areas). The residential development forecast is predicated on
the City building out the entire single- and semi-detached unit supply by 2031. To
achieve its 2031 population target, it is estimated that the City would also need to
experience growth of about 8,359 rowhouse and other multiple uni
apartment units over the period. This pattern of housing unit growth would
represent somewhat higher density housing than the pattern experienced in the City
over the last ten years, especially for the period leading to 2031 as the supply of
Greenfield land dwindles. Such a pattern is, however, in keeping with City and
Regional policies aimed at promoting intensification.
Table A.5 summarizes the population and household development forecast for the
City between 2014 and 2031. The City is forecast to grow by about 88,525 persons
and 35,001 households over the period. Table A.6 shows the population and
household development forecast for the City less the downtown core. The City less
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the downtown is forecast to grow by about 70,820 persons and 33,
2031.
A breakdown of the housing unit forecast for the City less the downtown is shown in
Tables A.7 and A.8. Population growth in the new units is estimated by applying the
following ppus to the housing unit forecast: 3.29 for single and semi-detached units;
2.33 for rows and other multiples; and 1.82 for apartments. The ppu estimates are
based upon the historical time series of population growth in housing by period of
construction provided in Table A.4. The total population growth in new units in the
City is forecast at 42,170 for the period 2014 to 2023 and at 88,114 for the period
2014 to 2031.
Table A.9 summarizes the household development forecast for the suburban area,
central neighbourhoods and downtown between 2014 and 2031. The suburban areas
are forecast to grow by about 15,542 single and semi-detached un
term with the market share of these unit types declining over the period as the Citys
remaining greenfield land is developed. Overall, the suburban areas are forecast to
grow by 14,139 units between 2014 and 2023 and by 29,775 units between 2014 and
2031. Population growth in new units in the suburban areas is es
between 2014 and 2018 and at 80,941 between 2014 and 2031.
The vast majority of housing unit growth in the downtown and central
neighbourhoods is forecast to be in the form of row units and apartments. Overall,
the central neighbourhood areas are forecast to grow by 1,859 units between 2014
and 2023 and by 3,683 units between 2014 and 2031. Population gr
units in the central neighbourhoods is estimated at 3,658 betwee
and at 7,172 between 2014 and 2031.
Housing unit growth in the downtown is less pronounced and primarily takes the
form of apartments, with more than 90% of the growth in the forecast period
occurring in apartments. Overall, the downtown is expected to grow by 972 units
3
between 2014 and 2023 and by 1,543 units between 2014 and 2031. Population
3
The 400 apartment units listed in the downtown in 2014 represent known developments
that will be drawing permits in 2014.
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growth in new units is estimated at 1,779 between 2014 and 2023 and at 2,830
between 2014 and 2031.
2.Non-Residential Forecast
The employment forecast is anchored on the employment target of 130,000 in 2029
established by the Region of Waterloo (see above). Table A.6 shows that total
Census employment by place of work (or net employment) is forecast to grow by
about 31,685 over the forecast period to 2031.
Non-residential development charges are calculated on a per unit of gross floor area
(GFA) basis. Therefore, as required by the , a forecast of future non-residential
DCA
building space has been developed. As with the residential forec
forecast covers the ten year period from 2014 to 2023 for general services and the
long-term period from 2014 to 2031 for the engineered services.
The floorspace forecast for industrial, commercial and institutional uses is based on
historical floorspace trends and averages. The forecast also acc
expected developments in the near- to medium-term as well as the long-term
outlook for employment envisioned by the Regional Official Plan.
An assumed floorspace per worker (FSW) for each employment category is then
applied to the new floorspace forecast in order to estimate the number of associated
employees. The following FSW assumptions have been used:
2
Industrial 85 m per employee
2
Commercial 35 m per employee
2
Institutional 50 m per employee
The employment and floorspace forecasts for the City, less the downtown core area,
are summarized in Table A.10. The total floorspace growth is forecast at 1,048,182
m2 over the long-term of which the largest component relates to commercial
2
development (554,094 m or 53%) followed by institutional development (293,591
22
m or 28%) and industrial development (200,497 m or 19%).
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Table A.11 summarizes the employment and floorspace forecasts for the suburban
areas, central neighbourhoods, and downtown. The breakdown of forecast floorspace
by type for each area is shown in Table A.12.
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APPENDIX B
GENERAL SERVICES
TECHNICAL APPENDIX
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APPENDIX B
GENERAL SERVICES TECHNICAL APPENDIX
INTRODUCTION AND OVERVIEW
This appendix provides the detailed analysis undertaken to establish the development
charge rates for each of the general services in the City of Kitchener.
The appendix is divided into eight sub-sections, with one section for each of the
general services:
B.1 Library
B.2 Fire Protection
B.3 Indoor Recreation
B.4 Outdoor Recreation
B.5 Public Works
B.6 Parking
B.7 Cemeteries
B.8 Growth-Related Studies
Every sub-section, with the exception of Growth-Related Studies, contains a set of
three tables. The tables provide the background data and analysis undertaken to arrive
at the calculated development charge rates for that particular service. An overview of
the content and purpose of each of the tables is given below.
With the exception of Fire Protection and Public Works, the benefits of the general
services listed above are deemed to be City-wide for the purpose of calculating a
development charge. As the costs eligible for development charge recovery for Fire
Protection and Public Works relate to the expansion of these services to meet the
needs of development only in the suburban areas the development charge for these
services is based on suburban area development only.
TABLE 1 HISTORICAL SERVICE LEVELS
Table 1 presents the data used to determine the ten year historical service level. The
() and require that
Development Charges ActDCAOntario Regulation 82/98
development charges be set at a level no higher than the average service level
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provided in the City over the ten year period immediately preceding the preparation
of the background study, on a service by service basis. For the purpose of this study,
the historical inventory period has been defined as 2004 to 2013
requires that when defining and determining historical service levels
O. Reg. 82/98
both the quantity and quality of service be taken into consideration. In most cases, the
service levels are initially established in quantitative terms. For example, service levels
for buildings are presented in terms of square feet per unit. The qualitative aspect is
introduced by considering the monetary value of the facility or service. In the case of
buildings, for example, the cost would be shown in terms of dollars per square foot to
replace or construct a facility of the same quality. This approach helps to ensure that
the capital facilities that are to be charged to new development reflect not only the
quantity (number and size) but also the quality (value or cost)
the City in the past. Both the quantitative and qualitative aspects of service levels
used in the current analysis are based on information provided by City staff. This
information is generally based on historical records and experience with costs to
acquire or construct similar facilities, equipment and infrastructure.
The final page of Table 1 shows the calculation of the maximum
envelope, net of uncommitted excess capacity. The maximum allowable is defined as
the ten year historical service level (expressed as either $/capita or $/capita and
employment) multiplied by the forecast increase in net population or net population
and net employment over the planning period. The resulting figur
capital infrastructure that must be constructed for that particular service so that the
ten year historical service level is maintained.
There is also a requirement in the to consider excess capacity within the Citys
DCA
existing infrastructure that may be available to partially meet future servicing
requirements. If Council has expressed its intent, before or at the time the capacity
was created, to recoup the cost of providing the capacity from new development, it is
considered committed excess capacity under the and the associated capital
DCA
cost is eligible for recovery. Should uncommitted excess capacity exist it will be
determined whether or not this capacity will be available to service new development
and, if so, appropriate adjustments will be made to the calculat
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TABLE 2 2014 2023 DEVELOPMENT-RELATED CAPITAL PROGRAM &
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGE
The requires that Council express its intent to provide future capital facilities to
DCA
support future development. Based on the development forecasts presented in
Appendix A, a development-related capital program which sets out the projects
required to service anticipated development for the ten-year period from 2014 to 2023
has been developed. The development-related capital program for
shown as Table 2 of each sub-section.
The gross costs of projects shown in the capital programs are ba
Citys 10-year capital forecast, adjusted downwards to current (2014) dollars and by
removing, for City-wide services, that portion of project costs that benefit the
Downtown.
To determine the share of the program that is eligible for recovery through
development charges, the gross project costs are reduced by any anticipated grants or
subsidies, benefit to existing shares, and the mandatory 10% reduction for all
services except Fire Protection and Public Works.
A benefit to existing share represents that portion of a capital project that will benefit
the existing community. It could, for example, represent a porti
that, at least in part, replaces a facility that is demolished, redeployed or will otherwise
not be available to serve its former function (a replacement share). The benefit to
existing share of the capital program is not deemed to be development-related and is
therefore removed from the development charge calculation. The capital cost for
benefit to existing shares will require funding from non-development charge sources,
typically property taxes or user fees.
When calculating development charges, the development-related ne
must be reduced by 10% for all services except protection servic
services ( s.5.(1)8.). The 10% discount is therefore applied to all general services
DCA
considered in this appendix with the exception of the Fire Protection and Public
Works services. As with benefit to existing shares, the 10% mandatory reduction must
be funded from non-development charge sources.
The capital program less any benefit to existing shares and the 10% reduction, yields
the development-related costs. Although deemed development-related, not all of the
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net development-related capital program may be recoverable from
charges in the period from 2014 to 2023. For previously built facilitiessuch as the
Central Library, Kitchener Operations Facility, and Charles and
Block parking garagesthat were oversized to provide services to development within
the ten year period, development charge monies have already funded a portion of
development-related capital costs (committed DC reserve funds)
Additionally, for some of the services, a portion of the capital program will service
development that will not occur until after 2023. This portion o
is either deemed pre-built service capacity to be considered as committed excess
capacity to be recovered under future development or represents a future service level
increase that is ineligible for development charge recovery.
The remaining portion of the net capital program represents the
cost that may be included in the development charge calculation. In all cases this
amount is equal to or less than the maximum allowable funding en
calculated on the final page of Table 1, adjusted downwards by an amount equivalent
to any current reserve fund deficit (see below). The result is t
development-related net capital cost that is eligible for recovery through development
charges over the period from 2014 to 2023.
Calculation of the Unadjusted Development Charge Rates
The section below the capital program displays the calculation of the unadjusted
development charge rates. The term unadjusted development charge is used to
distinguish the charge that is calculated prior to cash flow financing considerations.
The cash flow analysis is shown in Table 3.
The first step when determining the unadjusted development charge rate is to allocate
the development-related net capital cost between the residential
sectors. For all City-wide general services except the Library, Indoor Recreation,
Outdoor Recreation, and Cemeteries the development-related costs have been
allocated 79% residential and 21% non-residential. This ratio is based on forecast
changes in population in new housing units and employment in new non-residential
floor space over the planning period (less development in the Downtown).
The development-related costs associated with the Library, Indoor Recreation,
Outdoor Recreation, and Cemeteries have been allocated 100% to residential
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development because the need for these services is driven entirely by the residential
sector.
For Fire Protection and Public Works the development-related costs have been
allocated 80% residential and 20% non-residential based on forecast changes in
population in new housing units and employment in new non-residential floor space
over the planning period in the suburban areas only.
The residential share of the 2014-2023 development charge eligib
divided by the forecast population growth in new units. This gives the unadjusted
residential development charge per capita. The non-residential development-related
net capital costs are divided by the forecast increase in non-residential gross floor area
(GFA). This yields a charge per square foot of new non-residenti
TABLE 3 CASH FLOW ANALYSIS
A cash flow analysis is also undertaken to account for the timing of projects and
receipt of development charges. Interest earnings or borrowing costs are, therefore,
accounted for in the calculation as allowed under the . Based on the
DCA
development forecast, the analysis calculates the development charges rate that is
required to finance the net development-related capital spending plan including
provisions for any borrowing costs or interest earnings on the r
flow analysis is designed so that the closing cash balance at the end of the planning
period is as close to nil as possible.
Opening cash balances in the cash flow analysis reflect the reserve fund balances that
are available to fund development-related capital works as at 31
Where a current reserve fund is in a deficit the maximum allowable funding envelope
has been reduced by an amount equivalent to the deficit (see above). A summary of
the reserve fund balances, as well as projected reserve fund balances over the ten year
planning period for each service, is shown in Appendix E.
In order to determine appropriate development charges rates reflecting borrowing and
earnings necessary to support the net development-related funding requirement,
assumptions are used for the inflation rate and interest rate. An inflation rate of 2.0%
is used for the funding requirements, and interest rates of 5.5% (negative balance) and
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3.5% (positive balance) are used for borrowing/earnings on the funds. This yields
effective real discount rates of 3.5% and 1.5% respectively.
Table 3 displays the results of the cash flow analysis and provides the adjusted or final
per capita residential and per square foot (of GFA) non-residential development
charges.
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APPENDIX B.1
LIBRARY
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APPENDIX B.1
LIBRARY
The Kitchener Public Library provides library services in a central library facility
currently undergoing substantial renovation and expansionand four branch libraries.
The benefits of the Library are deemed to be City-wide for the purpose of calculating
the development charge.
TABLE 1 2004-2013 HISTORICAL SERVICE LEVELS
Table 1 (pages 1-2) displays the Librarys ten year historical inventory for buildings,
land, materials, and furniture and equipment (excluding personal computers). The
current building area totals 86,190 sq.ft. and has a current replacement value of $33.8
million. The land associated with the buildings totals 1.60 hectares and is valued at
$6.4 million. The buildings contain resource materials valued at $14.8 million and
equipment (including cataloguing and self check-out systems) valued at $1.1 milliom.
The 2013 full replacement value of the inventory of capital assets for the Library is
$56.1 million and the ten year historical average service level
(page 3). The historical service level, multiplied by the ten year forecast City net
population growth (less the Downtown), results in a ten year max
funding envelope of $10.9 million. No uncommitted excess capacity has been
identified for the Library. However, Library capital costs must
cent as per the . The resulting net maximum allowable funding envelope brought
DCA
forward to the development charges calculation is therefore reduced to $9.8 million.
TABLE 2 2014 2023 DEVELOPMENT-RELATED CAPITAL PROGRAM &
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGE
The development-related capital program for the Library totals $35.9 million and
includes two facility expansions. The first is the ongoing renovation and expansion to
the Central Library facility at a total cost of $24.1 million. The second is the
construction of a new South End Community Library from 2019 to 2021 at a total cost
of $8.7 million. A large portion of the Central Library project cost, $23.0 million,
represents that part of the facility that has already been const
the time of construction, Council expressed its intent to pay for part of the facility
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through development charges, the development-related capital costs are eligible for
development charge funding as committed excess capacity under . A
DCA
substantial portion of the Central Library cost, $7.9 million, is related to the
renovation of the existing facility and is removed from development charge
consideration as a benefit to existing share.
The City is also anticipating adding $430,000 worth of additional library materials and
$2.8 million in other capital over the 2014-2023 planning period
other capital investment, $2.1 million, represents either a replacement of existing
equipment and technology or a benefit to existing share.
Of the Library development-related capital costs, $2.6 million represents the ten per
cent discount imposed by the . The discounted development-related net capital
DCA
cost of $23.3 million is carried forward to the development char
$23.3 million, $3.2 million has already been funded from development charge reserve
funds and $10.7 million represents that portion of the development-related costs that
exceed the maximum allowable and is either a post-2023 share or a future service level
increase. The remaining $9.3 million (equal to the maximum allowable adjusted
downwards to account for a $420,831 reserve fund deficit) is car
development charges calculation.
As shown at the base of Table 2, the entire development-related
the Library is allocated against residential development in the City (less the
Downtown). This results in an unadjusted development charge of $221.61 per capita.
TABLE 3 CASH FLOW AND RESERVE FUND ANALYSIS
The cash flow analysis is displayed in Table 3. It considers the timing of the projects as
well as the timing of the development charge revenues to adjust
A negative reserve fund balance in the Library development charges reserve fund of
($420,831) is also eligible for development charge recovery and is treated as
committed excess capacity. After cash flow, this contributes to increasing the Library
charge to $240.80 per capita.
The following table summarizes the calculation of the Library development charge:
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LIBRARY SUMMARY
10-year Hist.2014 - 2023Unadjusted
Adjusted
Service LevelDevelopment Charge
Development Charge
Development-Related Capital Program
per capitaTotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$329.84$35,931,113$9,345,483$221.61$0.00
$240.80$0.00
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APPENDIX B.2
FIRE PROTECTION
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APPENDIX B.2
FIRE PROTECTION
The Fire Department is responsible for the provision of fire protection services across
the entire City. However, as the costs eligible for development charge recovery relate
to the expansion of fire services to meet the needs of development in the suburban
areas, the development charge for fire is based on suburban area development only.
TABLE 1 2004-2013 HISTORICAL SERVICE LEVELS
The Fire ten year historical inventory of capital assets includes seven fire stations
(page 1). The combined area of the stations is 79,818 sq.ft. and
valued at $25.3 million. The land area associated with the buildings is 8.01 hectares
and is valued at almost $8.8 million. Fire vehicles add another
value of the inventory. Finally, personal fire fighter equipment, office furniture,
equipment, and software, and specialized equipment add another $6.0 million to the
value of the inventory (page 2).
The current replacement value of the Fire capital infrastructure is $52.4 million. It
has provided the City with a ten year average service level of $168.55 per capita and
employment (page 3). This service level, when multiplied by the ten year growth in
net population and employment in the suburban areas, results in
allowable funding envelope of $5.8 million that can be considere
through development charges.
No uncommitted excess capacity of service has been identified. Thus the full $5.8
million, being exempt from the mandatory 10% capital cost reduction, can be
considered for recovery through development charges.
TABLE 2 2014 2023 DEVELOPMENT-RELATED CAPITAL PROGRAM &
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGE
The City is currently undertaking a Fire Master Plan. It is anticipated that the Plan
will recommend that no new buildings, land, or furnishings are required to
accommodate the increased need for service arising from development. However, in
order to maintain response time and other service level standard
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areas, provision has been made for an additional tanker ($726,75
technologies ($1.0 million). A small portion of the investment in radio system
upgrades in 2014 and 2020 is also considered to be development-related.
The total ten year capital forecast for Fire amounts to $1.9 million, of which $1.8
million is considered to be related to development in the surburban areas. This cost,
being exempt from the ten per cent reduction applied to other general services and
being less than the $5.4 maximum allowable funding envelope (adjusted downwards
to account for a $373,076 reserve fund deficit), is carried forward to the development
charges calculation.
The ten year development-related net capital cost of $1.8 million is allocated 80 per
cent against residential development, or $1.4 million, and 20 pe
residential development, or $350,419. The allocation is based on
changes in population in new housing units and employment over the 10 year
planning period in the suburban areas. The resulting unadjusted development charge
rates are $36.46 per capita for new residential development and $0.84 per square metre
for new non-residential development.
TABLE 3 CASH FLOW ANALYSIS
The cash flow analysis is displayed in Table 3. It considers the timing of the projects as
well as the timing of the development charge revenues to adjust
A negative reserve fund balance in the Fire Protection development charges reserve
fund of ($373,076) is also eligible for development charge recov
committed excess capacity. After cash flow, this contributes to increasing the Fire
charges to $45.60 per capita and $1.00 per square metre.
The following table summarizes the calculation of the Fire development charge:
FIRE PROTECTION SUMMARY
10-year Hist.2014 - 2023Unadjusted
Adjusted
Service LevelDevelopment Charge
Development Charge
Development-Related Capital Program
per pop & empTotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$168.55$1,895,750$1,754,662$36.46$0.84
$45.60$1.00
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APPENDIX B.3
INDOOR RECREATION
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APPENDIX B.3
INDOOR RECREATION
The City provides indoor recreation services to City residents at a number of
community centres, studios, arenas, seniors centres and other facilities. All City
residents have access to all facilities. The benefits of the Indoor Recreation service are
deemed to be City-wide for the purpose of calculating the development charge.
TABLE 1 2004-2013 HISTORICAL SERVICE LEVELS
The combined area of the Indoor Recreation facilities is 1,018,186 sq.ft. and the
buildings, including all the furniture and equipment they contai
million (page 2). The land area associated with the buildings is 37.49 hectares and is
valued at $50.1 million (page 4).
The current replacement value of the Indoor Recreation capital infrastructure is
$333.2 million. It has provided the City with ten year average service level of
$1,401.15 per capita (page 5). This service level, when multipli
population growth in the City (less the Downtown), results in a ten year maximum
allowable funding envelope of $46.1 million. However, recent facility expansions
(primarily the Activa Sportsplex and Sportsworld) has resulted i
of service. This excess capacity is valued at $17.9 million and must be netted off the
maximum allowable. In addition, Indoor Recreation capital costs must be reduced by
10 per cent as per the . The discounted maximum allowable funding envelope is
DCA
therefore $25.3 million. This amount is brought forward to the development charge
calculation.
It is noted that the previous background study calculated ten year maximum allowable
funding envelopes for each category of facility identified in the Indoor Recreation
capital asset inventory. This category-specific approach is no longer considered
appropriate given the City-wide benefit of the development-related capital program.
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TABLE 2 2014 2023 DEVELOPMENT-RELATED CAPITAL PROGRAM &
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGE
The development-related capital program for Indoor Recreation includes one arena
project, one indoor pool project, one indoor turf facility, the renovation and
expansion of an existing seniors centre, and three community centre projects:
The arena project is a new $17.2 million facility to be constructed in the
southern part of the City at the end of the ten year planning period.
The indoor pool is to be constructed in the Citys south end between 2021 and
2023 at a total cost of $12.2 million.
The renovation and expansion of the Rockway Senior Centre, at a total cost of
$9.6 million, is planned for the end of the ten year planning period. This
project has been included in the development-related capital pro
resolution of Council date March 17, 2014.
The new indoor turf facility is to be constructed in the Citys south end at the
end of the ten year planning period. This project has also been included in the
development-related capital program by resolution of Council dat
2014.
Three community centre projects, totalling $10.5 million with construction
starting in 2017, have been identified in the development-related capital
program.
Altogether, the Indoor Recreation capital program amounts to $57.2 million. No
grants or subsidies are anticipated to offset the cost of the program.
The entire cost of the arena, pool, and indoor turf facility and considered to be
development-related. Significant portions of the Rockway and community centre
project costs, $4.7 million and $3.5 million respectively, represent either a benefit to
the existing community or a replacement of existing facilities and are removed from
development charge consideration.
Of the development-related cost, $4.9 million is removed as it represents the
mandatory ten per cent capital cost reduction under the . Of the remaining $44.1
DCA
million, $18.7 million represents that portion of the program that exceeds the
maximum allowable funding envelope. This $18.7 million post-2023 share may be
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recovered from future development charges. The remaining $25.3 million (equal to
the maximum allowable) is carried forward to the development cha
The development charge eligible cost of $25.3 million is allocated 100% against
residential development. This yields an unadjusted development charge rate of
$600.75 per capita.
TABLE 3 CASH FLOW ANALYSIS
The cash flow analysis is displayed in Table 3. It considers the timing of the projects as
well as the timing of the development charge revenues to adjust
A positive reserve fund balance in the Indoor Recreation development charges reserve
fund of $1,661,835 contributes to reducing the charge to $539.90 per capita.
The following table summarizes the calculation of the Indoor Recreation development
charge:
INDOOR RECREATION SUMMARY
10-year Hist.2014 - 2023Unadjusted
Adjusted
Service LevelDevelopment Charge
Development Charge
Development-Related Capital Program
per capitaTotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$1,401.15$57,160,000$25,333,765$600.75$0.00
$539.90$0.00
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APPENDIX B.4
OUTDOOR RECREATION
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APPENDIX B.4
OUTDOOR RECREATION
The City provides outdoor recreation services to residents through a number of parks,
trails, golf courses and other open spaces, all of which contain numerous facilities,
buildings and other amenities. As with Indoor Recreation, all City residents have
access to all facilities. The benefits of the Outdoor Recreation service are therefore
deemed to be City-wide (less the Downtown) for the purpose of calculating the
development charge.
TABLE 1 2004-2013 HISTORICAL SERVICE LEVELS
The City contains almost 1,802 hectares of developed parkland that includes 753
hectares of parks, 898 hectares of open space and 151 hectares of golf course land
($64.1 million value). The City also maintains a 327,923 linear metre trail system.
The cost to develop this trail system is estimated at $19.7 million. Development costs
associated with the Citys 253 hectares of hazardlands are estimated at $2.8 million
(page 1).
The outdoor facilities which have been added to the parks include playground
equipment, outdoor ice rinks, ball diamonds, basketball courts, a skate park, stadiums,
a cricket field, lawn bowling greens, outdoor aquatic facilities, soccer fields, tennis
courts, and other amenities. These facilities have a combined value of $40.4 million
(pages 2-13). Outdoor buildings, field houses, vehicles, and golf course buildings have
an additional value of almost $18.5 million (pages 14-17).
The current replacement value of the Outdoor Recreation capital infrastructure is
$145.5 million. It has provided the City with a ten year average service level of
$618.96 per capita (page 18). This service level, when multiplied by the ten year net
population growth in the City (less the Downtown), results in a ten year maximum
allowable funding envelope of $20.4 million.
Recent capital investments have resulted in an excess capacity of service. The
uncommitted portion of this excess capacity is valued at $4.9 million and must be
netted off the maximum allowable. The resulting development char
costs must be reduced by ten per cent ($1.6 million) under the .
DCA
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The discounted maximum allowable funding envelope brought forward to the
development charges calculation is $14.0 million.
TABLE 2 2014 2023 DEVELOPMENT-RELATED CAPITAL PROGRAM AND
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGES
The development-related capital program for Outdoor Recreation includes $39.5
million of capital works, including $34.8 million of park development projects (page
1) and $4.6 million of trail development projects (page 2). No grants or subsidies have
been identified to offset the cost of the program. A significant portion of the
neighbourhood park redevelopment, the district park development and
redevelopment, and the new community trails, $4.8 million, relates to remediation
and repair of the parkland, trails, and park amenities, and is treated as a benefit to the
existing community.
The $34.6 million development-related cost becomes subject to the ten per cent
reduction imposed by the . The discounted development-related net capital cost
DCA
of $31.2 million is carried forward to the development charges calculation. Of this
$31.2 million, $18.6 million represents that portion that exceed
allowable for Outdoor Recreation (adjusted downwards to account for a $1.4 million
reserve fund deficit) and is either a post-2023 benefit share or a future service level
increase.
The total Outdoor Recreation ten year development-related net caital cost of $12.6
million is allocated 100 per cent against residential development. This yields an
unadjusted development charge rate of $298.97 per capita.
TABLE 3 CASH FLOW ANALYSIS
The cash flow analysis is displayed in Table 3. It considers the timing of the projects as
well as the timing of the development charge revenues to adjust
A negative reserve fund balance in the Outdoor Recreation development charges
reserve fund of $1.4 million is also eligible for development charge recovery and is
treated as committed excess capacity. After cash flow, this contributes to increasing
the Outdoor Recreation charge to $342.30 per capita.
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The following table summarizes the calculation of the Outdoor Recreation
development charge:
OUTDOOR RECREATION SUMMARY
10-year Hist.2014 - 2023Unadjusted
Adjusted
Service LevelDevelopment Charge
Development Charge
Development-Related Capital Program
per capitaTotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$618.96$39,453,432$12,607,508$298.97$0.00
$342.30$0.00
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APPENDIX B.5
PUBLIC WORKS
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APPENDIX B.5
PUBLIC WORKS
The capital costs associated with public works functions related to a highway are
accounted for in this section. Note that the capital costs associated with road
construction are dealt with under the Roads and Related service. For the purpose of
calculating a development charge for Public Works only the popul
employment growth in the suburban areas is considered.
TABLE 1 2004-2013 HISTORICAL SERVICE LEVELS
The Public Works ten year historic inventory of capital assets includes 351,000 sq.ft.
of buildings, including the recently constructed Kitchener Operations Facility. The
buildings are valued at $27.6 million (page 1). The land area associated with the
buildings is 24.6 hectares and is valued at almost $26.7 million. The fleet of 2,808
vehicles is valued at $44.2 million (page 2).
The current replacement value of the Public Works capital infras
million. It has provided the City with a ten year average service level of $333.98 per
capita and employment (page 3). This service level, when multiplied by the ten year
net population and employment growth in the suburban areas, resu
maximum allowable funding envelope of $11.4 million. This amount, being exempt
from the mandatory ten per cent capital cost reduction, can be considered for recovery
through development charges.
TABLE 2 2014 2023 DEVELOPMENT-RELATED CAPITAL PROGRAM AND
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGES
The development-related capital program for Public Works includes the recovery of a
portion of the construction cost of the Kitchener Operations Facility, a facility that
both replaced previous public works buildings and associated lands and expanded the
capacity of the public works functions. The total cost of the project was $45.5 million,
of which $1.8 million was funded from Federal and Provincial grants. Of the $43.7
million net cost, $21.7 million (50%) represents a replacement share that is ineligible
for development charge funding. About $6.2 million of developmen
funds have been spent on the project to date. Of the remaining $15.8 million, $4.6
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million can be funded from development charges within the 10 year planning period,
with $11.2 million representing that portion of the development-related cost that
exceeds the maximum allowable (adjusted downwards to account for a $3.7 million
reserve fund deficit).
The capital program also includes the recovery of $900,000 of development-related
vehicle acquisition costs that were, at the time of acquisition, were not funded from
development charges. These costs are being recovered as committed excess capacity
under the .
DCA
A further $8.0 million worth of new equipment acquisitions and upgrades is also
projected to be required over the ten year planning period. A significant portion of
this cost, $4.0 million (50%), is considered to be a benefit to the existing community
as it represents a replacement of existing equipment.
The total ten year capital program for Public Works amounts to $54.4 million, of
which $26.9 million is considered to be related to development in the suburban areas.
Of this $26.9 million, $6.2 million has already been funded from development charges
and $12.9 million represents either a post-2023 benefit share or a future service level
increase. The remaining $7.8 million is carried forward to the development charges
calculation.
The development charge eligible cost of $7.8 million is allocated 80% against
residential development, or $6.2 million, and 20% against non-residential
development, or $1.6 million, based on the ratio of forecast growth in population in
new units and employment in new floor space in the suburban area
2
unadjusted development charge rates of $161.91 per capita and $3.72 per m
respectively.
TABLE 3 CASH FLOW ANALYSIS
The cash flow analysis is displayed is Table 3. It considers the timing of the projects
against the timing of the development charge revenues to determine adjusted
calculated rates. After cash flow analysis, the residential charge increases to $258.10
2
per capita and the non-residential charge increases to $6.25 per m. The increase in
the charge reflects the current $3.7 million reserve fund deficit.
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The following table summarizes the calculation of the Public Works development
charge.
PUBLIC WORKS SUMMARY
10-year Hist.2014 - 2023Unadjusted
Adjusted
Service LevelDevelopment Charge
Development Charge
Development-Related Capital Program
per pop & empTotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$333.98$54,395,894$7,791,419$161.91$3.72
$258.10$6.25
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APPENDIX B.6
PARKING
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APPENDIX B.6
PARKING
The City of Kitchener currently owns and operates 32 parking lots. The benefits of the
parking service are deemed to be City-wide for the purpose of calculating the
development charge.
TABLE 1 2014 2023 DEVELOPMENT-RELATED CAPITAL PROGRAM AND
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGES
The current inventory of capital assets for parking includes 3,714 parking spaces. The
total cost to develop the spaces amounts to $92.3 million (page
with the spaces, totalling 9.50 hectares, is valued at $58.4 million (page 2). The City
also owns 132 parking meters which are valued at $286,000 (page
The current total value of parking capital infrastructure is estimated to be $151.0
million. This infrastructure has provided the City with a ten year average service level
of $408.44 per capita and employment (page 4). The service level, when multiplied by
the ten year net population and employment growth in the City (less the Downtown),
results in a ten year maximum allowable funding envelope of $18.7 million. Recent
investments in structured parking have resulted in an excess capacity of service. The
uncommitted portion of this excess capacity is valued at $7.7 million and must be
netted off the maximum allowable. The resulting development charge eligible Parking
capital costs must be reduced by ten per cent ($1.1 million) und.
DCA
The discounted maximum allowable funding envelope brought forward to the
development charges calculation is $9.9 million.
TABLE 2 2014 2023 DEVELOPMENT-RELATED CAPITAL PROGRAM AND
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGES
The ten year development-related capital program for Parking inc
portion of the construction costs of three structured parking lots as well as one new
parking lot at a total cost of $49.9 million. Federal and Provincial grants in the
amount of $16.6 million were received for the recently construct
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Benton and Civic District structures. The total net cost of the program is therefore
$33.3 million.
A number of the spaces created in the new lots will replace 582 existing parking
spaces in the City. The replacement share which represents these
amounts to $5.1 million. The development-related cost of $28.2 million becomes
subject to the ten per cent reduction required by the ($2.8 million).
DCA
Of the remaining $25.3 million development-related cost, $8.0 million has already
been from development charge reserve funds and a further $11.7 million represents
either a post-2023 benefit share or a future service level increase. The remaining $5.7
million (equal to the maximum allowable, adjusted downwards to account for a $4.3
million reserve fund deficit) is carried forward to the development charge calculation.
The ten year development-related net capital cost of $5.7 million is allocated 79 per
cent against residential development, or $4.5 million, and 21 pe
residential development, or $1.2 million. This yields unadjusted development charge
2
rates of $106.08 per capita and $2.42 per m respectively.
TABLE 3 CASH FLOW ANALYSIS
After cash flow analysis, the residential charge increases to $193.90 per capita and the
2
non-residential charge increases to $5.76 per m. The increase is the result of the
substantial deficit in the Parking development charge reserve fund that is to be funded
as committed excess capacity under the .
DCA
The following table summarizes the calculation of the Parking development charge.
PARKING SUMMARY
10-year Hist.
2014 - 2023Unadjusted
Adjusted
Service LevelDevelopment Charge
Development Charge
Development-Related Capital Program
per pop & empTotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$408.44$49,910,296$5,671,869$106.08$2.42
$193.90$5.76
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APPENDIX B.7
CEMETERIES
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APPENDIX B.7
CEMETERIES
The benefits of Cemeteries service are deemed to be City-wide for the purpose of
calculating the development charge.
TABLE 1 2004-2013 HISTORICAL SERVICE LEVELS
Table 1 (pages 1-2) displays the Cemeterys ten year historic inventory for land,
buildings, and other facilities. The land totals 54.4 hectares and is valued at $15.1
million. The buildings and other facilities have a current repla
million.
The current replacement value of the inventory of capital assets for Cemeteries is
$21.2 million and the ten year historic average service level is $98.63 per capita (page
3). The historical service level, multiplied by the ten year forecast net population
growth in the City (less the Downtown), results in a ten year maximum allowable of
$3.2 million. No uncommitted excess capacity has been identified in the Cemeteries
service. The maximum allowable must be reduced by ten per cent ($325,000) under
the . The remaining maximum allowable of $2.9 million is carried forward to the
DCA
development charge calculation.
TABLE 2 2014 2023 DEVELOPMENT-RELATED CAPITAL PROGRAM AND
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGES
The development-related capital program for the Cemeteries service totals $2.4
million and relates to the Phase II expansion of the Williamsbur
purpose of calculating a development charge the Williamsburg expansion is assumed
to service the Citys Cemetery needs until 2031, notwithstanding that it is likely that
the City will need to acquire and develop more cemetery land before 2031 in order to
meet demand. No grants or subsidies have been identified to offset the cost of the
program.
The $2.4 million gross cost of the expansion is entirely related to increasing the
capacity of current cemetery at the Williamsburg site. However, a significant portion
of that capacity will be required to accommodate deaths of existing City residents
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rather than population growth arising from development. A benefit to existing share
of $1.7 million has therefore determined and has been excluded from the development
charge calculation. The $650,000 development-related costs become subject to the
ten per cent reduction under the ($65,000). Of the remaining $585,000,
DCA
$305,000 represents that portion of the costs that relate to the need for cemeteries
arising from development between 2024 and 2031 (the post-2023 share).
Altogether, $280,000 in development-related net capital costs are eligible for
development charge recovery. The $280,000 is allocated 100% against residential
development and yields an unadjusted development charge rate of $6.63 per capita.
TABLE 3 CASH FLOW ANALYSIS
The cash flow analysis is displayed is Table 3. It considers the timing of the projects
against the timing of the development charge revenues to determine adjusted
calculated rates. After cash flow analysis, the charge is reduced to $4.60 per capita.
The reduction is in part driven by a surplus of $79,964 in the Cemeteries development
charge reserve fund.
The following table summarizes the calculation of the Cemeteries development
charge:
CEMETERIES SUMMARY
10-year Hist.
2014 - 2023Unadjusted
Adjusted
Service LevelDevelopment Charge
Development Charge
Development-Related Capital Program
per pop & empTotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$98.63$2,361,658$279,738$6.63$0.00
$4.60$0.00
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APPENDIX B.8
GROWTH-RELATED STUDIES
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APPENDIX B.8
GROWTH-RELATED STUDIES
When calculating development charges, the allows for the inclusion of the costs
DCA
of undertaking studies related to the provision of development-related infrastructure,
including development charges background studies. The benefits of the growth-related
studies are deemed to be City-wide for the purpose of calculating the development
charge.
TABLE 1 2014 2023 DEVELOPMENT-RELATED CAPITAL PROGRAM AND
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGES
Table 1 provides a list of development-related studies the City
during the 2014-2023 period. As required by the , development charges studies
DCA
must be undertaken every five years, thus two are included in the list. The total
estimated cost of all studies is $2.4 million. No grants or subsidies have been
identified.
A benefit to existing share of $673,000 has been identified for many of the growth-
related planning studies. The remaining $1.8 million development
become subject to the ten per cent discount required by the ($176,000). The
DCA
remaining $1.6 million is attributable to development in the City from 2014 to 2023.
Of this $1.6 million, 79% ($1.3 million) is allocated against residential development
and 21% ($335,000) is allocated against non-residential development. The calculated
unadjusted charges that result are $29.68 per capita for new residential development
2
and $0.68 per m for new non-residential development.
TABLE 2 CASH FLOW ANALYSIS
After cash flow analysis, the residential charge increases to $36.30 per capita and the
2
non-residential charge increases to $1.18 per m. The increase is the result of a deficit
of $570,157 in the Growth-Related Studies development charge reserve fund that is to
be funded as committed excess capacity under the .
DCA
The following table summarizes the calculation of the Growth-Rel
development charge.
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GROWTH-RELATED STUDIES SUMMARY
2014 - 2031Unadjusted
Adjusted
Development-Related Capital ProgramDevelopment Charge
Development Charge
TotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$2,436,299$1,586,757$29.68$0.68$36.30$1.18
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APPENDIX C
ENGINEERED INFRASTRUCTURE
TECHNICAL APPENDIX
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APPENDIX C
ENGINEERED SERVICES TECHNICAL APPENDIX
INTRODUCTION AND OVERVIEW
This appendix provides the detailed analysis undertaken to establish the development
charge rates for each of the engineered services in the City of Kitchener.
The appendix is divided into six sub-sections, with one section for each of the
engineered services:
C.1 Sanitary Servicing
C.2 Roads and Related
C.3 Watermains
C.4 Engineering Studies
C.5 Intensification Allowance
C.6 Storm/Watercourse
Every sub-section contains a set of two tables. The tables provide the background data
and analysis undertaken to arrive at the calculated development charge rates for that
particular service. An overview of the content and purpose of each of the tables is
given below.
With the exception of the Intensification Allowance service, the benefits of the
engineered services listed above are deemed to relate to the suburban areas. The
development charges for these services are therefore calculated based on development
forecasts for the suburban areas only.
The Intensification Allowance service is intended to pay for the development-related
capital costs of new infrastructure only in the Citys designated central
neighbourhoods. Thus, the development charge for this service is calculated based on
a development forecast for the central neighbourhoods only.
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TABLE 1 2014 2031 DEVELOPMENT-RELATED CAPITAL PROGRAM &
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGE
The requires that City Council express its intent to provide future capital
DCA
facilities at the level incorporated in the development charges calculation. Based on
the development forecasts presented in Appendix A, the Council approved 2014 ten
year capital program, the Kitchener Growth Management Plan, and the desire to
maintain a balanced cashflow in development charge reserve funds
next ten years (2014 to 2023), City staff have compiled a development-related capital
program for the engineering services which sets out those projects that are required to
service anticipated development for the period to 2031. The development-related
capital program for each engineered service is shown on Table 1 of each sub-section.
Gross and net cost estimates are in provided current (2014) dollars. A detailed
breakdown of cost estimates for each capital project is provided in Appendix D.
To determine the share of the program that is eligible for recovery through
development charges, the net project costs are reduced by any benefit to existing
shares. A benefit to existing share represents that portion of a capital project that will
benefit the existing community. It could, for example, represent a portion of a new
facility that, at least in part, replaces a facility that is demolished, redeployed or will
otherwise not be available to serve its former function (a repl
benefit to existing share of the capital program is not deemed to be development-
related and is therefore removed from the development charge calculation. The
capital cost for benefit to existing shares will require funding from non-development
charge sources, typically property taxes or user fees.
Consistent with s. 5. (1)7. of the , there is no legislated percentage reduction in
DCA
the eligible growth-related capital cost for the provision of the engineered service
infrastructure.
The net capital program less any benefit to existing shares yields the development-
related costs. Although deemed development-related, not all of the net development-
related capital program may be recoverable from development charges in the period
from 2014 to 2023. For some projects, development charge funds have been
committed to project accounts and are not accounted for in the development charge
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reserve funds. These committed DC reserve funds are allocated to each project and
are shown in Table 1.
Unlike some of the general services in Appendix B, no portion of the engineered
services capital program is considered to benefit development beyond 2031.
Calculation of the Unadjusted Development Charge Rates
Table 1 also displays the calculation of the unadjusted development charge rates. The
term unadjusted development charge is used to distinguish the charge that is
calculated prior to cash flow financing consideration. The cash flow analysis is shown
on Table 2.
The first step in the determination of the unadjusted development charges rate is the
allocation of the development-related net capital costs between the residential and
the non-residential sectors. For all services except the Intensification Allowance the
development-related costs have been allocated 81% residential an
residential based on the ratio of forecast changes in population in new housing units
and employment in new non-residential floorspace in the suburban areas over the
planning period.
For the Intensification Allowance the development-related costs have been allocated
66% residential and 34% non-residential based on the ratio of fo
population in new housing units and employment in new non-residential floorspace
over the planning period in the Central Neighbourhoods.
The residential development-related costs are then divided by the forecast population
in new housing units in the respective service area. This gives the unadjusted
residential development charge per capita. The non-residential development-related
costs are divided by the forecast increase in non-residential gr
the respective service area. This yields a charge per square metre of new non-
residential GFA.
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TABLE 3 CASH FLOW ANALYSIS
A cash flow analysis is also undertaken to account for the timing of projects and
receipt of development charges. Interest earnings or borrowing costs are, therefore,
accounted for in the calculation as allowed under the . Based on the
DCA
development forecast, the analysis calculates the development charges rate that is
required to finance the net development-related capital spending plan including
provisions for any borrowing costs or interest earnings on the r
flow analysis is designed so that the closing cash balance at the end of the planning
period is as close to nil as possible.
Opening cash balances in the cash flow analysis reflect the reserve fund balances that
are available to fund development-related capital works as at 31
summary of the reserve fund balances, as well as projected reserve fund balances over
the ten year planning period for each service, is shown in Appendix E.
In order to determine appropriate development charges rates reflecting borrowing and
earnings necessary to support the net development-related funding requirement,
assumptions are used for the inflation rate and interest rate. An inflation rate of 2.0%
is used for the funding requirements, and interest rates of 5.5% (negative balance) and
3.5% (positive balance) are used for borrowing/earnings on the funds. This yields
effective real discount rates of 3.5% and 1.5% respectively.
Table 2 displays the results of the cash flow analysis and provides the adjusted or final
per capita residential and per square foot (of GFA) non-residential development
charges.
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APPENDIX C.1
SANITARY SERVICING
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APPENDIX C.1
SANITARY SERVICING
The Citys Engineering Services Department is responsible for the design,
construction and maintenance of the Citys sanitary sewers. The
Sanitary Servicing service are deemed to relate to the suburban areas for the purpose
of calculating the development charge.
TABLE 1 2014 2031 DEVELOPMENT-RELATED CAPITAL PROGRAM &
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGE
The development-related capital program for Sanitary Servicing includes $70.6
million of capital works, including $69.3 million of trunk sewer extensions, pumping
stations and pumping station upgrades, and storage facilities, and $1.3 million of
sanitary servicing development charge credit and/or refund repayments to which the
City is committed. No grants or subsidies have been identified for any of the projects.
Therefore the net cost of the program remains at $70.6 million.
Of this $70.6 net capital cost, more than $9.7 million has been
replacement share or a benefit to the existing community and has
development charge consideration. The remaining $60.8 million is related to
development in the suburban areas.
Existing development charge reserve funds of $69,625 have been committed to the
Old Mill Pumping Station project starting in 2015. This leaves $60.8 million that
requires funding from development charges.
The 2014-2031 development-related net capital cost of $60.8 million is allocated 81
per cent to new residential development, or $49.0 million, and 1
non-residential development, or $11.8 million. This yields unadjusted development
2
charge rates of $605.67 per capita and $13.30 per m respectively.
TABLE 2 CASH FLOW AND RESERVE FUND ANALYSIS
An uncommitted reserve fund balance in the Sanitary Servicing de
reserve fund of $16.6 million is available to fund the development-related capital
program. After cash flow analysis, this contributes to reducing the Sanitary Servicing
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2
charge to $444.60 per capita for new residential development and $10.56 per m for
new non-residential development.
The following table summarizes the calculation of the Sanitary Servicing development
charge:
SANITARY SERVICING SUMMARY
2014 - 2031Unadjusted
Adjusted
Development-Related Capital ProgramDevelopment Charge
Development Charge
TotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$70,560,419$60,773,281$605.67$13.30$444.60$10.56
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APPENDIX C.2
ROADS AND RELATED
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APPENDIX C.2
ROADS AND RELATED
This service category includes all roads and related infrastructure including the road
network, streetlights, intersection improvements, traffic signalization and other related
structures. The benefits of the Roads and Related service are deemed to relate to the
suburban areas for the purpose of calculating the development charge.
TABLE 1 2014 2031 DEVELOPMENT-RELATED CAPITAL PROGRAM &
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGE
The development-related capital program for Roads and Related in
million of capital works, including $65.5 million of new road construction and
$792,000 of intersection improvements. No grants or subsidies have been identified
for any of the projects. Therefore the net cost of the program remains at $66.3 million.
Given that all of the capital projects in the Roads and Related capital program
represent entirely new infrastructureroad links, intersections, and bridgesto meet
the increased need for service arising from development, the entire $66.3 net capital
cost is considered development-related.
The 2014-2031 development-related net capital cost of $66.3 million is allocated 81
per cent to residential development, or $53.5 million, and 19 per cent to non-
residential development, or $12.8 million. This yields unadjusted development charge
2
rates of $660.61 per capita and $14.51 per m respectively..
TABLE 2 CASH FLOW ANALYSIS
A reserve fund deficit of $19.4 million in the Roads and Related development charges
reserve fund is eligible for development charge recovery as committed excess capacity
under the . After cash flow, this contributes to increasing the Roads and Related
DCA
2
charge to $907.00 per capita and $23.38 per m respectively.
The following table summarizes the calculation of the Roads and Related development
charge:
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ROADS AND RELATED SUMMARY
2014 - 2031Unadjusted
Adjusted
Development-Related Capital ProgramDevelopment Charge
Development Charge
TotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$66,286,550$66,286,550$660.61$14.51$907.00$23.38
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APPENDIX C.3
WATERMAINS
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APPENDIX C.3
WATERMAINS
The Watermain service incorporates the capital cost of installing new watermains for
which the City is responsible. The benefits of the Watermain service are deemed to
relate to the suburban areas for the purpose of calculating the development charge.
TABLE 1 2014 2031 DEVELOPMENT-RELATED CAPITAL PROGRAM &
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGE
The development-related capital program for Watermains totals $8.9 million. No
grants or subsidies have been identified for any of the projects. Therefore the net cost
of the program remains at $8.9 million.
Of this $8.9 net capital cost, $902,520 has been identified as a benefit to the existing
share and has been removed from development charge consideration. The remaining
$8.0 million is related to development in the suburban areas and is carried forward to
the development charge calculation.
The 2014-2031 development-related net capital cost of $8.0 million is allocated 81
per cent to residential development, or $6.4 million, and 21 per
residential development, or $1.5 million. This yields unadjusted development charge
2
rates of $79.37 per capita and $1.74 per m respectively..
TABLE 2 CASH FLOW ANALYSIS
A $1.1 million surplus in the Watermains development charge rese
2
the adjusted development charge increasing to $64.50 per capita and $1.43 per m.
The following table summarizes the calculation of the Watermains development
charge:
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WATERMAINS SUMMARY
2014 - 2031Unadjusted
Adjusted
Development-Related Capital ProgramDevelopment Charge
Development Charge
TotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$8,866,813$7,964,293$79.37$1.74$64.50$1.43
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APPENDIX C.4
ENGINEERING STUDIES
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APPENDIX C.4
ENGINEERING STUDIES
When calculating development charges, the allows for the inclusion of the costs
DCA
of undertaking studies related to the provision of development-related infrastructure,
including development charges background studies. The benefits of the engineering
development-related studies are deemed to relate to the suburban areas for the purpose
of calculating the development charge.
TABLE 1 2014 2031 DEVELOPMENT-RELATED CAPITAL PROGRAM AND
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGES
Table 1 provides a list of engineering development-related studi
undertaking during the 2014-2031 period. As required by the , development
DCA
charges studies must be undertaken every five years, and the engineering component
of the studies are included in the list. The total estimated cost of all the studies is $6.3
million. No benefit to existing share has been identified. Thus the entire $6.3 million
is attributable to development in the suburban areas from 2014 to 2031 and is carried
forward to the development charge calculation.
Of the $6.3 million development-related net capital cost, 81 per cent is allocated
against residential development, or $5.1 million, and 19 per cent is allocated against
non-residential development, or $1.2 million. This yields unadjusted development
2
charge rates of $62.94 per capita and $1.38 per m respectively..
TABLE 2 CASH FLOW ANALYSIS
The cash flow analysis is displayed in Table 2. It considers the timing of the projects as
well as the timing of the development charge revenues to adjust
A reserve fund deficit in the Engineering Studies development charges reserve fund of
$789,800 is also eligible for development charge recovery and is treated as committed
excess capacity. After cash flow analysis, this contributes to increasing the
2
Engineering Studies charges to $76.40 per capita and $1.71 m.
The following table summarizes the calculation of the Engineerin
development charge:
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ENGINEERING STUDIES SUMMARY
2014 - 2031Unadjusted
Adjusted
Development-Related Capital ProgramDevelopment Charge
Development Charge
TotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$6,315,577$6,315,577$62.94$1.38$76.40$1.71
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APPENDIX C.5
INTENSIFICATION ALLOWANCE
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APPENDIX C.5
INTENSIFICATION ALLOWANCE
The City has for many years levied a development charge in the C
Neighbourhoods to pay for the capital cost of additional engineering service capacity
and upgrades for development and redevelopment. In keeping with past practice, the
benefits of this Intensification Allowance are deemed to relate to the Central
Neighbourhoods (less the Downtown) for the purpose of calculating the development
charge.
It should be noted that the Ontario Municipal Board ruled in 2006 that the Citys
approach [to the Intensification Allowance] is fair, reasonable and makes good sense
(Decision/Order No. 2483, p.32).
TABLE 1 2014 2031 DEVELOPMENT-RELATED CAPITAL PROGRAM AND
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGES
Table 1 provides for an annual capital expenditure of $250,000 or $4.5 million over
the period 2014 to 2031, to account for the intensification allowance. The entire $4.5
million is attributable to development in the Central Neighbourhoods (less the
Downtown) from 2014 to 2031 and is carried forward to the development charge
calculation.
Of the $4.5 million development-related net capital cost, 66 per cent is allocated
against residential development, or $2.0 million, and 34 per cent is allocated against
non-residential development, or $1.0 million, based on the ratio of anticipated growth
in population in new units to employment growth in new non-residential floorspace in
the Central Neighbourhoods to 2031. This yields unadjusted development charges of
2
$277.98 per capita and $6.10 per m respectively.
TABLE 2 CASH FLOW ANALYSIS
A reserve fund deficit in the Intensification Allowance development charges reserve
fund of $469,004 is eligible for development charge recovery and is treated as
committed excess capacity under the . After cash flow, the Intensification
DCA
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Allowance residential charge is increased to $308.30 per capita and the non-
2
residential charge is increased to $9.43 per m.
The following table summarizes the calculation of the Intensification Allowance
development charge.
INTENSIFICATION ALLOWANCE SUMMARY
2014 - 2031Unadjusted
Adjusted
Development-Related Capital ProgramDevelopment Charge
Development Charge
TotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$4,500,000$3,000,000$277.98$6.10$308.30$9.43
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APPENDIX C.6
STORM/WATERCOURSE
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APPENDIX C.6
STORM/WATERCOURSE
The benefits of the Storm/Watercourse service are deemed to relate to the suburban
areas for the purpose of calculating the development charge.
TABLE 1 2014 2031 DEVELOPMENT-RELATED CAPITAL PROGRAM AND
CALCULATION OF UNADJUSTED DEVELOPMENT CHARGES
The development-related capital program for Storm/Watercourse includes $33.2
million of capital works, including a $13.5 million reconstruction of the Schneider
Creek watercourse. A $1.3 million grant has been identified for the Middle and South
Strasburg Creek Watercourse project. Therefore the net cost of the program is $32.0
million.
Of this $32.0 net capital cost, approximately $20.4 million has been identified as a
benefit to the existing community and has been removed from development charge
consideration. This includes a $6.8 million benefit to existing share of the Schneider
Creek rehabilitation project (based on the Ontario Municipal Board order no. 2483,
pp.25, 35). Additional benefits to existing total $13.6 million for the Balzer Creek
rehabilitation, Hidden Valley Watercourse improvements, Idlewood Creek
improvements, Kolb Drain, and Laurel Creek Watercourse. The remaining $11.2
million is related to development in the suburban areas.
The 2014-2031 development-related net capital cost of $4.7 million relating to all
projects except for the Schneider Creek project is allocated 81
residential development and 19 per cent against non-residential development. The
development-related net capital cost of the Schneider Creek proj
allocated 60% residential and 40% non-residential development in accordance with
the above noted Ontario Municipal Board ruling.
The resulting unadjusted development charge rates are $94.91 per
2
residential development and $3.97 per m for non-residential development.
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TABLE 2 CASH FLOW ANALYSIS
A $4.2 million surplus in the Storm/Watercourse development charges reserve fund of
is available to fund the development-related capital program. After cash flow analysis,
this contributes to reducing the Storm/Watercourse charge to $43.60 per capita for
2
new residential development and $2.90 per m for new non-residential development.
The following table summarizes the calculation of the Storm/Watercourse
development charge.
STORM/WATERCOURSE SUMMARY
2014 - 2031Unadjusted
Adjusted
Development-Related Capital ProgramDevelopment Charge
Development Charge
TotalNet DC Recoverable$/capita$/sq.m
$/capita$/sq.m
$33,234,403$11,186,545$94.91$3.97$43.60$2.90
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APPENDIX D
ENGINEERED INFRASTRUCTURE
PROJECT DETAILS
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Development Charges Project Sheet
PRJ. NAMEBiehn Drive and Sanitary Trunk Extension EAPROJECT #SA1
PROJECTEnvironmental AssessmentPRJ. TYPESanitary
LOCATION
Biehn Drive Extension
Rev. April 2014
PROJECT
DESCRIPTION
KEY MAP
This Environmental Assessment and preliminary
design will determine the preferred alternative for the
alignment and configuration of the proposed Biehn
Drive extension from its current terminus to the
Strasburg Road / Robert Ferrie Drive extension.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
EitlAtEnvironmental Assessmen1LS$400000400,000
t$
25%$100,000
Contingency
$500,000
Sub-total
1LS$200,000
Preliminary Design (30%)
Total Project Cost$700,000
Attributable to new growth100%$700,000
Growth Related Balance Required$700,000
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Development Charges Project Shee
t
PRJ. NAMEBorden Greenway TrunkPROJECT #SA2
PROJECTPRJ. TYPESanitaryTrunk Sanitary Sewer
just south of Ottawa Street South to just north of Ottawa
LOCATION
Revised April 2014
Street South
PROJECT
DESCRIPTIONKEY MAP
The Borden Greenway Trunk Sanitary Sewer for a short
section from 46 metres south of Ottawa Street South to a
manhole just north of Ottawa Street South requires a
upgrade in order to accommodate the ultimate flows from
areas west of Westmount Road. An Environmental
Assessment Study will be required to determine the
preferred method of achieving these upgrades.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Sanitary Sewer Upgrades128m$2,700$345,600
SanitarySewerUpgrades128m$2,700$345,600
Contingency25%$86,400
Sub-total$432,000
Engineering & Services During Construction20%$86,400
Environmental Assessment$100,000
Total Project Cost$618,400
Attributable to new growth70%$432,880
Growth Related Balance Required$433,000
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Development Charges Project Shee
t
PRJ. NAMECity Wide Flow Monitoring and S.C.A.D.A. ControlsPROJECT #SA3
PROJECTPRJ. TYPESanitarySanitary Pumping Station Capacity Upgrades
Five stations in Ottawa-Manchester-Montgomery trunk
LOCATION
Revised Oct. 2013
sanitary sewer system
PROJECT
DESCRIPTIONKEY MAP
In 2002/2003 the City of Kitchener retained Dillon Consulting
Ltd. to complete a report entitled "Master Plan, Ottawa-
Manchester-Montgomery Trunk Sanitary Sewer System,
Phasing & Implementation Plan". As a result of the study, it
was determined that a flow control system, permanent
monitoring stations and a new and upgraded S.C.A.D.A
system would be required on five pumping stations in this
area in order to control flows to the Montgomery Trunk
Sanitary Sewer. These systems will be monitoring both
existing and new growth areas on the East side.
Based on a need to understand the system City-wide, this
study has been expanded to all areas of the City.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Flow Monitors and SCADA1LS$1,200,000
FlowMonitorsandSCADA1LS$1,200,000
Contingency20%$240,000
Sub-total$1,440,000
Engineering20%$288,000
Total Project Cost$1,728,000
Attributable to new growth30%$518,400
Growth Related Balance Required$519,000
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Development Charges Project Sheet
PRJ. NAMEDoon South Sewage FacilityPROJECT #SA4
PROJECTSanitary Pumping Station Capacity UpgradesPRJ. TYPESanitary
LOCATIONDoon South / Brigadoon
Rev. April 2014
PROJECT
DESCRIPTION
KEY MAP
The Doon South Pumping Station Environmental Study
Report recommends the construction of a new pumping
station and a forcemain in the Doon south Area. Doon
south pumping station project will initially include a
storage tank and a temporary forcemain until the ultimate
forcemains identified in the EA study are required.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
NewSanitaryPumpingStationandTemporaryewanaryumpngaon anemporary1LS$6388040,,
NSitPiSttidT1LS$6388040
Forcemain
Contingency20%$1,277,608
Sub-total$7,665,648
Engineering & Services During Construction15%$1,149,847
Total Project Cost$8,815,495
Attributable to new growth100%$8,815,495
Growth Related Balance Required$8,816,000
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Development Charges Project Shee
t
PRJ. NAMEFalconridge Sanitary Pumping Station UpgradesPROJECT #SA5
PROJECTPRJ. TYPESanitarySanitary Pumping Station Capacity Upgrades
Falconridge Drive
LOCATION
Revised March 2014
PROJECT
DESCRIPTIONKEY MAP
The Falconridge Sanitary Pumping Station requires capacity
upgrades (include pumps, valves and electrical only) to
service future development within the catchment. An
Environmental Assessment will be required.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Pumping Station Upgrades including EA1LS$200,000
PumpingStationUpgradesincludingEA1LS$200,000
Contingency20%$40,000
Sub-total$240,000
Engineering and Construction Services20%$48,000
Total Project Cost$288,000
Attributable to new growth100%$288,000
Growth Related Balance Required$288,000
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Development Charges Project Sheet
PRJ. NAMEFreeport Sanitary ForcemainPROJECT #SA6
PROJECTPRJ. TYPESanitarySanitary Pumping Station Capacity Upgrades
LOCATION
Freeport Pumping Station to Wabanaki Drive
Revised April 2014
PROJECT
DESCRIPTION
KEY MAP
The Freeport Pumping Station Environmental Study Report -
2010 recommends construction of a new 400mm twin barrel
forcemain from the pumping station to Wabanaki Drive, following
the proposed route for the River Road extension. The new
forcemain includes a trenchless crossing under highway 8.
Construction to be coordinated with the construction of the River
Road Extension.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Itlltifti400fiInstallation of twin 400 mm forcemains26802680m$1,200$3,216,000$1200$3216000
Contingency20%$643,200
Sub-total$3,859,200
Engineering & Services During Construction10%$385,920
Total Project Cost$4,245,120
Attributable to new growth64%$2,716,877
Growth Related Balance Required$2,717,000
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Development Charges Project Shee
t
PRJ. NAMEFreeport Sanitary Pumping StationPROJECT #SA7
PROJECTPRJ. TYPESanitarySanitary Pumping Station Capacity Upgrades
3563 King St. E. across from the Freeport Hospital in the
LOCATION
Chicopee Community
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
The City requires that the existing pumping
station and infrastructure be evaluated and
upgrades determined. An EA will be required to
determine the improvements.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Pumping Station Upgrades1LS$6,700,000
PumpingStationUpgrades1LS$6,700,000
Contingency10%$670,000
Sub-total$7,370,000
Engineering & Services During Construction10%$737,000
Total Project Cost$8,107,000
Attributable to new growth65%$5,269,550
Growth Related Balance Required$5,270,000
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Development Charges Project Shee
t
PRJ. NAMEMiddle Strasburg Creek Sanitary Sewer TrunksPROJECT #SA8
PROJECTPRJ. TYPESanitarySanitary Pumping Station Capacity Upgrades
Brigadoon subdivision to Bleams Road and Strasburg Road
LOCATION
to Huron Road to Plains road
Revised March 2014
PROJECT
DESCRIPTIONKEY MAP
The portion of the Middle Strasburg sanitary trunk sewer
south of Huron Rd. to the crossing of Strasburg Rd. and
Strasburg Creek has been constructed. The Middle
Strasburg portion from Huron Road to Bleams Road is
currently ongoing with approximately 1250m of 3100m
completed.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Middle Strasburg - Strasburg Creek to Huron RoadComplete
MiddleStrasburgStrasburgCreektoHuronRoadComplete
Middle Strasburg - Huron to Bleams Road1250m$1,400$1,750,000
micro tunneling portion600m$8,000$4,800,000
Contingency25%$1,637,500
Sub-total$8,187,500
Engineering and Construction Services15%$1,228,125
Environmental AssessmentComplete
Total Project Cost$9,415,625
Attributable to new growth100%$9,415,625
Growth Related Balance Required$9,416,000
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Development Charges Project Shee
t
PRJ. NAMEOld Mill Road Pumping StationPROJECT #SA9
PROJECTPRJ. TYPESanitarySanitary Pumping Station Capacity Upgrades
Pinnacle Drive and Old Mill Road
LOCATION
Revised March 2014
PROJECT
DESCRIPTIONKEY MAP
In order to adequately service the Lower Doon area, the
existing pumping station at Pinnacle Drive and Old Mill Road
will have to be upgraded to handle the expected flows. An
Environmental Assessment will be required to determine
how this station is to be upgraded.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Pumping Station Upgrades1L.S.$4,000,000
PumpingStationUpgrades1L.S.$4,000,000
Upstream pipe upgrades870m$1,000$870,000
Contingency25%$1,000,000
Sub-total$5,870,000
Engineering & Services During Construction20%$1,174,000
Environmental Assessment$150,000
Total Project Cost$7,194,000
Attributable to new growth45%$3,237,300
Existing in capital account$69,625
Growth Related Balance Required$3,168,000
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Development Charges Project Shee
t
PRJ. NAMEOttawa-Trussler Area Sewage FacilityPROJECT #SA10
PROJECTPRJ. TYPESanitarySanitary Pumping Station Capacity Upgrades
Ottawa St. - Trussler Road area
LOCATION
Revised March 2014
PROJECT
KEY MAP
DESCRIPTION
In accordance with the draft Class Environmental Study
Report, a pumping station and forcemain to service the
Laurentian West Phase 3b Community and surrounding
areas will need to be constructed. Activa Holdings has front
ended the cost of the Class EA, these cost will be recovered
through a Credit for Service Agreement. In addition to the
cost of the study, and dependent on the outcome of the
Environmental Assessment, the Developer has agreed to
pay for the detailed design and construction of the sanitary
pumping station, forcemain, and related downstream gravity
sewer improvements, through a second Credit for Service
Agreement upon the completion of the study.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Sanitary Pumping Station1LS$1,683,000$1,683,000
Forcemain1LS$1,277,000$1,277,000
Contingency25%$740,000
Sub-total$3,700,000
Engineering and Construction Services15%$555,000
Environmental Assessment$302,776
Total Project Cost$4,557,776
Attributable to new growth100%$4,557,776
Growth Related Balance Required$4,558,000
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Development Charges Project Shee
t
PRJ. NAMEPioneer Tower Sanitary Pumping Station UpgradesPROJECT #SA11
PROJECTPRJ. TYPESanitarySanitary Pumping Station Capacity Upgrades
Pioneer Tower Road
LOCATION
Revised March 2014
DESCRIPTIONKEY MAP
The City requires that the existing pumping station be
upgraded to accommodate planned future development.
This pumping station was built in phases and due to Pincott
and Deer Ridge Subdivisions being almost complete,
additional pumps and valves are required to support the
increase in sanitary flows.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Pumping Station Upgrades$200,000
PumpingStationUpgrades$200,000
Contingency20%$40,000
Sub-total$240,000
Engineering and Construction Services20%$48,000
Total Project Cost$288,000
Attributable to new growth100%$288,000
Growth Related Balance Required$288,000
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Development Charges Project Shee
t
PRJ. NAMESouth Strasburg Creek Sanitary Sewer TrunkPROJECT #SA12
PROJECTPRJ. TYPESanitarySanitary Pumping Station Capacity Upgrades
Strasburg Road to Becker Estates Lands
LOCATION
Revised March 2014
PROJECT
DESCRIPTIONKEY MAP
The South portion of the south Strasburg sanitary sewer
trunk needs to be designed and constructed from Strasburg
Road to approximately 2.2km upstream in accordance with
the South Strasburg Gravity Trunk Sanitary Sewer
Environmental Study Report.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
2200m$1,500$3,300,000
South - Strasburg Road to upstream limit
25%$825,000
Contingency
$4,125,000
Sub-total
Engineering and Construction Services15%$618,750
Total Project Cost$4,743,750
Attributable to new growth100%$4,743,750
Growth Related Balance Required$4,744,000
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Development Charges Project Shee
t
PRJ. NAMEStrasburg Road Sanitary Trunk ExtensionPROJECT #SA13
PROJECTPRJ. TYPESanitarySanitary Pumping Station Capacity Upgrades
Strasburg Road Extension
LOCATION
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
The South Strasburg Trunk Extension from current terminus
near Rushmeadow street to 550m south along the planned
Strasburg Road extension.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Sanitary Sewer with Appurtenances550m$4,960,738
SanitarySewerwithAppurtenances550m$4,960,738
Contingency10%$496,074
Sub-total$5,456,812
Engineering & Services During Construction10%$545,681
Environmental Assessmentcomplete
Total Project Cost$6,002,493
Attributable to new growth100%$6,002,493
Growth Related Balance Required$6,003,000
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Development Charges Project Sheet
PRJ. NAMEUpper Hidden Valley Sewage FacilityPROJECT #SA14
PROJECTSanitary Pumping Station Capacity UpgradesPRJ. TYPESanitary
Upper Hidden Valley
LOCATION
Revised March 2014
PROJECT
DESCRIPTION
KEY MAP
In order for development to take place in the Upper
Hidden Valley area, the City requires that a sewage
facility be built. In order to determine the preferred
solution for servicing this area, an Environmental
Assessment will be required. Forcemain to be installed
with Freeport Pumping Station twin forcemains along
Hidden Valley Road as part of River Road extension (if
possible).
ESTIMAT
E
DESCRIPTION
QTYUNITCOST PERTOTAL COST
Pumping Station Upgrades
1L.S.$2,500,000
Forcemain2900m$500$1,450,000
Contingency25%$987,500
Sub-total
$4,937,500
Engineering & Services During Construction
20%$987,500
Environmental Assessment
$200,000
Land Cost Value0.5acre$250,000$125,000
Total Project Cost
$6,250,000
Attributable to new growth
100%$6,250,000
Growth Related Balance Required$6,250,000
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Development Charges Project Shee
t
PRJ. NAMEPROJECT #SA15
Woolner Trail Pumping Station Storage Facility (formerly Grand River South)
PROJECTPRJ. TYPESanitarySanitary Pumping Station Capacity Upgrades
Zeller Drive / Lackner Boulevard
LOCATION
Revised March 2014
PROJECT
DESCRIPTIONKEY MAP
In 2002/2003 the City of Kitchener retained Dillon Consulting
Ltd. to complete a report entitled "Master Plan, Ottawa-
Manchester-Montgomery Trunk Sanitary Sewer System,
Phasing & Implementation Plan". As a result of this study, it
was determined that a equalization basin would be required
along with the aforementioned station.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Pumping Station Upgrades$3,062,460
PumpingStationUpgrades$3,062,460
Contingency25%$765,615
Sub-total$3,828,075
Engineering and Construction Services25%$957,019
Environmental Assessment$150,000
Total Project Cost$4,935,094
Attributable to new growth100%$4,935,094
Growth Related Balance Required$4,936,000
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Development Charges Project Shee
t
PRJ. NAMEForwell SPS UpgradesPROJECT #SA16
PROJECTPRJ. TYPESanitarySanitary Pumping Station Capacity Upgrades
Misty Street / Otterbein
LOCATION
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
The Forwell SPS requires capacity upgrades to support area
development.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Pumping Station Upgrades$800,000
PumpingStationUpgrades$800,000
Contingency25%$200,000
Sub-total$1,000,000
Engineering and Construction Services25%$250,000
Environmental Assessment$126,000
Total Project Cost$1,376,000
Attributable to new growth100%$1,376,000
Growth Related Balance Required$1,376,000
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Development Charges Project Shee
t
PRJ. NAMEPROJECT #SA15
Woolner Trail Pumping Station Storage Facility (formerly Grand River South)
PROJECTPRJ. TYPESanitarySanitary Pumping Station Capacity Upgrades
Zeller Drive / Lackner Boulevard
LOCATION
Revised March 2014
PROJECT
DESCRIPTIONKEY MAP
In 2002/2003 the City of Kitchener retained Dillon Consulting
Ltd. to complete a report entitled "Master Plan, Ottawa-
Manchester-Montgomery Trunk Sanitary Sewer System,
Phasing & Implementation Plan". As a result of this study, it
was determined that a equalization basin would be required
along with the aforementioned station.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Pumping Station Upgrades$3,062,460
PumpingStationUpgrades$3,062,460
Contingency25%$765,615
Sub-total$3,828,075
Engineering and Construction Services25%$957,019
Environmental Assessment$150,000
Total Project Cost$4,935,094
Attributable to new growth100%$4,935,094
Growth Related Balance Required$4,936,000
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Development Charges Project Shee
t
PRJ. NAMEAmand DrivePROJECT #R1
PROJECTPRJ. TYPERoadNew Road
Strasburg Road from its present terminus to 880m North of
LOCATION
Staufer DriveRevised April 2014
PROJECT
DESCRIPTIONKEY MAP
A North-South Major Collector Road is needed to support
the Rosenberg Community transportation network, running
parallel to Fischer Hallman Road. A portion of the proposed
road is outside of development applications and requires a
Class Environmental Assessment.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
RoadExtension715m$2900,$2073500,,
RoadExtension715m$2900$2073500
Contingency20%$414,700
Sub-Total$2,488,200
Engineering and Consultant Services20%$497,640
Class EA1LS$350,000$350,000
Land Acquisition1LS$1,000,000$1,000,000
Total Project Cost$4,335,840
Attributable to new growth100%$4,335,840
Growth Related Balance Required$4,336,000
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Development Charges Project Shee
t
PRJ. NAMEBlair Creek BridgePROJECT #R2
PROJECTPRJ. TYPERoadNew Bridge
Blair Creek Drive from Strasburg Road to Reidel Drive
LOCATION
Revised April 201
4
PROJECT
DESCRIPTIONMAP NOT APPLICABLE
In accordance with Strasburg Road Environmental Study
Report 2013, Blair Creek Drive needs to be extended from
Strasburg Road to Reidel Drive. This bridge will be
constructed over Blair Creek. The City completed a credit
refund agreement with Activa Holdings to cover the cost of
this bridge.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
NewBridge1LS$2716667,,
NewBridge1LS$2716667
Contingency20%$543,333
Sub-total$3,260,000
Engineering and Construction Services15%$489,000
Total Project Cost$3,749,000
Attributable to new growth100%$3,749,000
Growth Related Balance Required$3,749,000
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Development Charges Project Shee
t
PRJ. NAMECity Share Of Subdivision WorksPROJECT #R3
PROJECTSubdivision WorksPRJ. TYPERoads
various
LOCATION
Rev. Nov. 2013
PROJECT
DESCRIPTIONMAP NOT APPLICABLE
The City sets aside monies from the Development Charge
Fund for the City's share of works to be done in subdivisions
or adjacent thereto, including Regional Roads (e.g. extra
width of roads, noise wall, sidewalks on backlotted arterials).
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Works18years$780,000$14,040,000
Total Projected Cost$14,040,000
Growth Related Balance Required$14,040,000
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Development Charges Project Shee
t
PRJ. NAMEHuron Road WideningPROJECT #R4
PROJECTPRJ. TYPERoadsRoad Widening and Urbanization
From Fischer Hallman Rd. to Trussler Rd.
LOCATION
Revised April 2014
PROJECT
DESCRIPTIONMAP NOT APPLICABLE
Huron Road Improvements from Strasburg road to Fischer
Hallman were completed in 2012. Phase 2 of Huron road
widening, the road improvements (urbanization) will be
completed from Fischer Hallman to Trussler Road.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
RoadWidening2225m$3,100,$6,897,500,,
RoadWidening2225m$3100$6897500
Contingency20%$1,379,500
Sub-total$8,277,000
Engineering and Construction Services20%$1,655,400
Hydro Cost (street Lighting)$1,000,000
Land Acquisition$1,000,000
Total Project Cost$11,932,400
Attributable to new growth100%$11,932,400
Growth Related Balance Required$11,940,000
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Development Charges Project Sheet
PRJ. NAMEStrasburg Road ImprovementsPROJECT #R5
PROJECTRoad Widening and ImprovementsPRJ. TYPERoad
Strasburg Rd. (Block Line road Rd. to Bleams Road)
LOCATION
Revised April 2014
PROJECT
DESCRIPTIONMAP NOT APPLICABLE
As per Kitchener integrated transportation master plan,
Strasburg Road requires major improvements and widening
from Block Line road to Bleams Road. This project will
include a roundabout at Strasburg Road and Block Line
Road.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
RoadWidening1100m$2650,$2915000,,
RoadWidening1100m$2650$2915000
Contingency20%$583,000
Sub-total$3,498,000
Engineering and Construction Services20%$699,600
Environmental assessmentLS$450,000
Land Acquisition$600,000
Total Project Cost$5,247,600
Attributable to new growth100%$5,247,600
Growth Related Balance Required$5,248,000
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Development Charges Project Shee
t
PRJ. NAMEStrasburg Road NorthPROJECT #R6
PROJECTRoad ExtensionPRJ. TYPERoad
Strasburg Road from its present terminus to 880m North of
LOCATION
Stauffer Drive
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
The City has completed the detail design of Strasburg Road
extension from its present terminus to 880m North of
Stauffer Drive. This is a secondary collector road and will
provide an alternate access to the Brigadoon and Doon
south area. This road will also cross the South branch of
Strasburg Creek. This project includes construction of four
lane road with multi-use trail, a bridge, landscaping, signals,
street lights and installation of noise wall along portion of the
road and a wildlife passage culvert.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
1LS$12,106,554,,
RoadExtension(1200minlengthincludinggradingroadx,u,
RoadEtension(1200minlengthincldinggradingroad 1LS$12106554
works, new bridge, sound wall
and wildlife passage)
Contingency10%$1,210,655
Sub-Total$13,317,209
Engineering and Consultant Services10%$1,331,721
KW Hydro Cost (street Lighting)1LS$700,000
Total Project Cost$16,559,586
Attributable to new growth100%$16,559,586
Growth Related Balance Required$16,560,000
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212
Development Charges Project Shee
t
PRJ. NAMEStrasburg Road SouthPROJECT #R7
PROJECTRoadsPRJ. TYPERoads
Strasburg Road from 880m South of Stauffer Drive to New
LOCATION
Dundee Road
Rev. Nov. 13
PROJECT
DESCRIPTIONKEY MAP
The City has completed an Environmental Study Report for
Strasburg Road from 880m North of Stauffer Drive to New
Dundee Road. This secondary arterial road will provide an
alternate access to the Brigadoon and Doon south area.
This road includes construction of a 4 lane road with
multiuse trail, storm sewers, storm water management
pond, streetlights and landscaping.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Roadextension2560,m$2590,$6630400,,
Roadextension2560m$2590$6630400
Sub-total$6,630,400
Contingency and miscellaneous25%$1,657,600
Engineering and Consultant Services15%$994,560
Total Project Cost$9,282,560
Attributable to new growth100%$9,282,560
Growth Related Balance Required$9,283,000
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213
Development Charges Project Shee
t
PRJ. NAMEPROJECT #R8
Doon South Road (from Winding Wood Crescent to Doon Village)
PROJECTRoadsPRJ. TYPERoad
Doon South Road from Winding Wood Crescent to Doon
LOCATION
Village
Revised March 2014
PROJECT
DESCRIPTIONKEY MAP
The Cycling Master Plan proposes 1.04 kilometers of cycle
track for this section, (inclusive of both sides of the
roadway).
This is proposed to include approximately 500 m of
boulevard multi-use trail and a pedestrian refuge island
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Multi-useTrailandRefugeIsland1LS$225000,$225000,
Multi-useTrailandRefugeIsland1LS$225000$225000
Contingency20%$45,000
Sub-total$270,000
Engineering and Consultant Services25%$67,500
Total Project Cost$337,500
Attributable to new growth100%$337,500
Growth Related Balance Required$337,500
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214
Development Charges Project Shee
t
PRJ. NAMECedar Street North (from Weber Street to King Street)PROJECT #R9
PROJECTRoadsPRJ. TYPERoads
Weber Street to King Street
LOCATION
Revised March 2014
PROJECT
DESCRIPTIONKEY MAP
The Cycle Master Plan proposes 0.3 kilometers of bicycle
priority street. This work will include new signage and super-
sharrows.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Bicycle Priority Street1LS$7,,000$7,,000
BicyclePriorityStreet1LS$7000$7000
Contingency and Miscellaneous25%$1,750
Sub-total$8,750
Engineering and Consultant Services15%$1,312.50
Total Project Cost$10,063
Attributable to new growth100%$10,063
Growth Related Balance Required$10,100
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215
Development Charges Project Shee
t
PRJ. NAMEIntersection ImprovementsPROJECT #IN1
PROJECTPRJ. TYPEIntersectionIntersection Improvements
Homer Watson Blvd. and Doon Village Rd/Manitou Dr.
LOCATION
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
Doon South Community Traffic Impact Study recommends
intersection improvements at Homer Watson Blvd. and
Doon Village Rd./Manitou Dr.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
IntersectionImprovements1LS$100,000,
IntersectionImprovements1LS$100000
Contingency20%$20,000
Sub-total$120,000
Engineering20%$24,000
Environmental Assessment$0
Total Project Cost$144,000
Attributable to new growth100%$144,000
Growth Related Balance Required$144,000
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Development Charges Project Shee
t
PRJ. NAMEIntersection ImprovementsPROJECT #IN2
PROJECTPRJ. TYPEIntersectionIntersection Improvements
Pioneer Drive and Doon Village Road
LOCATION
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
Doon South Community Traffic Impact Study recommends
intersection improvements at Doon Village Rd. and Pioneer
Dr.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
IntersectionImprovements$100,000,
IntersectionImprovements$100000
Contingency20%$20,000
Sub-total$120,000
Engineering20%$24,000
Environmental Assessment$0
Total Project Cost$144,000
Attributable to new growth100%$144,000
Growth Related Balance Required$144,000
HEMSON
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217
Development Charges Project Shee
t
PRJ. NAMEIntersection Improvements - Doon SouthPROJECT #IN3
PROJECTPRJ. TYPEIntersectionIntersection Improvements - Doon South
Strasburg Rd. and Huron Rd.
LOCATION
Revised April 201
4
PROJECT
DESCRIPTIONKEY MAP
Reconstruction of Huron Road from Strasburg Road to
Fischer Hallman is completed in 2012 as per Huron Road
Environmental Study Report. Addition of a new right turn
lane on north bound Strasburg Road is required as per this
study.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
IntersectionImprovements1LS$350000,
IntersectionImprovements1LS$350000
Contingency20%$70,000
Sub-total$420,000
Engineering20%$84,000
Total Project Cost$504,000
Attributable to new growth100%$504,000
Growth Related Balance Required$504,000
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218
Development Charges Project Shee
t
PRJ. NAMEAmand DrivePROJECT #W1
PROJECTPRJ. TYPEWaterWatermain
Amand Drive
LOCATION
Rev. Nov. 13
PROJECT
DESCRIPTIONKEY MAP
The City requires the connection of the a 300mm diameter
watermain along Amand Drive to service the Rosemberg
Community.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
300mmDiameterWatermain715m$530$378950,
300mmDiameterWatermain715m$530$378950
Contingency20%$75,790
Sub-Total$454,740
Engineering and Consultant Services20%$90,948
Total Project Cost$545,688
Attributable to new growth100%$545,688
Growth Related Balance Required$545,700
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219
Development Charges Project Shee
t
PRJ. NAMEHighway 7 ExtensionPROJECT #W2
PROJECTPRJ. TYPEWaterWatermain
from Shirley Ave to Bridge Street
LOCATION
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
For security of water supply into the Bridgeport Area a
secondary watermain connection is necessary. An
additional benefit of this connection will be an increase in
water circulation to maintain quality. This main is to be
installed at the time of the construction of a new Highway 7
Grand River crossing. The main is approximately 1900
metres of 300mm diameter watermain and in is anticipated
that six valves will be needed.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
300 mm Diameter Watermain1900m$615$1,168,500
300mmDiameterWatermain1900m$615$1,168,500
450mm Crossing of Grand River1ea$65,000$65,000
Connections / Commissioning$20,000
Contingency20%$250,700
Sub-total$1,504,200
Engineering and Construction Services20%$300,840
Environmental Assessment$0
$1,805,040
Total Project Cost
50%$902,520
Attributable to new growth
Attributable to existing50%$902,520
Growth Related Project Cost$902,600
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Development Charges Project Shee
t
PRJ. NAMEHuron Road water mainPROJECT #W3
PROJECTPRJ. TYPEWaterSanitary Pumping Station Capacity Upgrades
Trussler Rd. to Fischer Hallman Rd.
LOCATION
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
Estimate need for watermain for Huron Road - Trussler
Road to approximately 205m east of Amand Drive.
(approximately 1510m).
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
300 mm Diameter Watermain1510m$530$800,300
300mmDiameterWatermain1510m$530$800,300
Valves5ea$8,500$42,500
Contingency20%$168,560
Sub-total$1,011,360
Engineering and Construction Services20%$202,272
Environmental Assessment$0
Total Project Cost$1,213,632
Attributable to new growth100%$1,213,632
Growth Related Project Cost$1,214,000
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221
Development Charges Project Shee
t
PRJ. NAMEStrasburg Road SouthPROJECT #W4
PROJECTWatermainPRJ. TYPEWater
Strasburg Road from 880m South of Stauffer Drive to New
LOCATION
Dundee Road
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
The City has completed an Environmental Study Report for
Strasburg Road from 880m North of Stauffer Drive to New
Dundee Road. A 300mm diameter watermain needs to be
constructed along Strasburg Road.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
300 mm Diameter Watermain2,,560m$530$2,,205,,900
300mmDiameterWatermain2560m$530$2205900
Contingency and miscellaneous15%$330,885
Sub-total$2,536,785
Engineering and Consultant Services15%$380,518
Total Project Cost$2,917,303
Attributable to new growth100%$2,917,303
Growth Related Balance Required$2,918,000
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222
Development Charges Project Shee
t
PRJ. NAMETrussler Road water mainPROJECT #W5
PROJECTPRJ. TYPEWaterWatermain
Trussler Road - Huron Road to Bleams Road
LOCATION
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
Estimate need for watermain along Trussler Road - Huron
Road to Bleams Road.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
450 mm Watermain2670m$530$1,415,100
450mmWatermain2670m$530$1,415,100
Appurtenances1LS$25,000
Contingency25%$360,025
Sub-total$1,800,125
Engineering and Construction Services20%$360,025
Environmental Assessment$0
Total Project Cost$2,160,150
Attributable to new growth100%$2,160,150
Growth Related Project Cost$2,161,000
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223
Development Charges Project Sheet
Balzer Creek Rehabilitation
PRJ. NAMEPROJECT #SW1
PROJECTSanitary Pumping Station Capacity UpgradesPRJ. TYPESWM
Homer Watson Blvd to confluence with Schneider Creek (near
LOCATION
Manitou Drive)
Revised April 2014
PROJECT
DESCRIPTION
KEY MAP
Balzer Creek is a tributary to Schneider Creek and it's
catchment area is approximately 250 ha. Development
upstream of Homer Watson (west), comprised mostly of
residential subdivisions, proceeded stormwater management
requirements. The development to the east of Homer Watson
required stormwater controls and these were draft plan
approved in the 1990s. A trunk 750 mm sanitary sewer, which
followed the alignment of Balzer Road, runs along and through
portions of the creek. A manhole near the rear of 533 Brisbane
Crt is jutting out in the middle of the creek. The creek in this
area is braided and is also causing property damage to 517
Brisbane Crt. Furthermore, portions of the proposed lots off of
Jeffrey Place (not yet constructed) may also be located within
the stable slope limit associated with Balzer Creek. It is
recommended that the creek alignment be altered to support
new growth (10%), protect the sanitary sewer infrastructure as
well as private property.
ESTIMATE
DESCRIPTION
QTYUNITCOST PERTOTAL COST
Approximately 850 m of water course work (Homer Watson
to confluence with Schneider Creek)850m$1,500$1,275,000
Contingency25%$318,750
Sub-total$1,593,750
Engineering and Construction Services20%$318,750
Environmental Assessment$100,000
Total Project Cost$2,012,500
Pumping Station Upgrades
Attributable to new growth10%$201,250
Non development charge (capital)90%
stormwater utility portion45%$905,625
sanitary sewer portion45%$905,625
Growth Related Balance Required
$201,300
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Development Charges Project Shee
t
PRJ. NAMEDoon Creek Limited CulvertsPROJECT #SW2
PROJECTPRJ. TYPESWMSanitary Pumping Station Capacity Upgrades
Tilt Drive at Stauffer Drive just north of Stauffer
LOCATION
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
As part of the development in that area, the internal street
system crosses over the Doon South Creek in two locations.
As such, two culverts were constructed in 2010 by the
developer. There was an agreement put into place to
reimburse the developer for costs in the amount of
$1,014,781. a partial payment has been made to the
developer ($445,000) with the remainder agreed to be paid
in 2016.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Two New Culverts
1LS$570,000$570,000
(amount agreed to be repayed by
TwoNewCulverts(amountagreedtoberepayedby 1LS$570,000$570,000
developer)
Contingency0%$0
$570,000
Sub-total
Engineering and Construction Services (actual)$0
Environmental Assessment$0
Total Project Cost$570,000
Attributable to new growth
100%$570,000
Growth Related Balance Required (in 2016)$570,000
HEMSON
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225
Development Charges Project Sheet
Hidden Valley Watercourse Improvements
PRJ. NAMEPROJECT #SW3
PROJECTSanitary Pumping Station Capacity UpgradesPRJ. TYPESWM
Hidden Valley Creek - from confluence at the Grand River
LOCATION
to upstream end
Revised April 2014
PROJECT
DESCRIPTION
KEY MAP
The catchment to this creek is a mixture of commercial and
residential and includes a Regional ESPA east of
Wabanaki. It is expected that the majority of the built up
area was developed prior to the requirement for SWM
controls. An EA is required to fully understand the creek
system in light of future development including the
extension of River Road and greenfield development and
the potential for increased erosion and sediment deposition
entering the watercourse along with incremental flows due
to increased runoff.
ESTIMATE
DESCRIPTION
QTYUNITCOST PERTOTAL COST
Water Course Restoration/Rehabilitation2000m$1,500$3,000,000
Contingency25%$750,000
Sub-total$3,750,000
Engineering and Construction Services20%$750,000
Environmental Assessment$150,000
Total Project Cost$4,650,000
Attributable to new growth10%$465,000
Growth Related Balance Required$465,000
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Development Charges Project Shee
t
PRJ. NAMEIdlewood Creek ImprovementsPROJECT #SW4
PROJECTPRJ. TYPESWMSanitary Pumping Station Capacity Upgrades
Idlewood Creek from Grand River to Fairway Rd
LOCATION
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
Idlewood Creek, located in the southeastern portion of the
City has a drainage area of 442 ha. This creek is classified
as a cold water fishery. Idlewood Creek has experienced
detrimental erosion over the past few decades likely as a
result of new and increased development. In the early
1990s, in response to concerns from downstream property
owners as well as an appeal to the Ontario Municipal Board
opposing zoning bylaw amendments for residential
development to occur, the City commissioned the Idlewood
Creek Master Drainage Plan. The intent of the study was to
determine whether additional measures were required to
address flooding and erosion. The study recommended that
more stringent SWM criteria be required with future
development and also recommended erosion protection
works on private property. There is also a second online
dam structure on Idlewood Creek, immediately downstream
(south) of Fairway Road, which is on City owned park lands.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
900m$1,500$1,350,000
Water Course Restoration / Rehabilitation
25%$337,500
Contingency
$1,687,500
Sub-total
Engineering20%$337,500
Environmental Assessment$100,000
Total Project Cost$2,125,000
Attributable to new growth20%$425,000
Existing DC funds in capital account$39,540
Growth Related Balance Required$386,000
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Development Charges Project Shee
t
PRJ. NAMEKolb DrainPROJECT #SW5
PROJECTSanitary Pumping Station Capacity UpgradesPRJ. TYPESWM
from Grand River to Brookfield Boulevard
LOCATION
Revised April 2014
PROJEC
T
DESCRIPTION
KEY MAP
An Environmental Assessment (EA) Study was undertaken
and filed October 2013 which provides the preferred solution
for upgrading the Drain between Smetana Drive and Forfar
Ave. The preferred solution is to provide an overflow sewer
along Rothsay Avenue and to upgrade the Stormwater
Management Facility within Forfar Park.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
1LS2,307,500$$ 2,307,500
Channel Works
Manchester Rd SWM Facility (SWMF6) retrofit1LS332,500$ $ 332,500
Contingency20%$ 461,500
Sub-total$ 3,101,500
Engineering and Construction Services20%$ 620,300
Environmental Assessment (costs- SAP to Nov 13)1LS143,063$ $ 143,063
Total Project Cost$ 3,864,863
Attributable to new growth10%$ 386,486
Existing DC in capital account$ 48,153
Growth Related Balance Required$338,400
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228
Development Charges Project Shee
t
PRJ. NAMELaurel Creek WatercoursePROJECT #SW6
PROJECTPRJ. TYPESWMSanitary Pumping Station Capacity Upgrades
Lower Laurel Creek from Bridge Street to City Of Kitchener
LOCATION
municipal boundaryRevised April 2014
PROJECT
DESCRIPTIONKEY MAP
In 1995 the Grand River Conservation Authority finalized the
Slope Stabilization and Erosion Control Class Environmental
Assessment for the Lower Laurel Creek between the Grand
River and City of Kitchener Municipal boundary. A portion of
this creek was upgraded in accordance with this plan.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Watercourse1200m$1,500$1,800,000
Watercourse1200m$1,500$1,800,000
Contingency25%$450,000
Sub-total$2,250,000
Engineering and Construction Services20%$450,000
Environmental Assessment - revision$50,000
Total Project Cost$2,750,000
Attributable to new growth10%$275,000
Growth Related Balance Required$275,000
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Development Charges Project Shee
t
PRJ. NAMEStrasburg Creek Watercourse Structure(s)PROJECT #SW7
Sanitary Pumping Station Capacity Upgrades
PROJECTPRJ. TYPESWM
Fischer Hallman Rd.
LOCATION
Revised April 2014
PROJEC
T
DESCRIPTIONKEY MAP
The Strasburg Creek Master Watershed Plan identified
requirements for flow control structures on the middle branch
of the creek. The EA provided preliminary design concepts
for structures at Huron Rd and at the confluence of the west
branch (upstream of Wards Pond). It included that an EA
was required to determine appropriate locations for these
structures. The updated EA (Draft October 2013)
determined the preferred location for flow control was at
Huron Rd and at Fischer Hallman. The Huron Rd crossing
has been constructed.
ESTIMAT
E
DESCRIPTION
QTYUNITCOST PERTOTAL COST
Two Box Culverts at Fischer Hallman Road1LS$1,339,3081,339,308$
Contingency20%$ 267,862
Sub-total
$ 1,607,170
Engineering & Services During Construction
20%$ 321,434
Total Project Cost
$ 1,928,604
Attributable to new growth
100%$ 1,928,604
Region of Waterloo cost sharing
$ 1,270,135
Growth Related Balance Required$ 658,500
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Development Charges Project Shee
t
PRJ. NAMEMisc. Creek Rehabilitation ProjectPROJECT #SW8
PROJECTPRJ. TYPESWMSanitary Pumping Station Capacity Upgrades
TBD
LOCATION
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
This project is intended to support creek rehabilitation
projects required either as a result of future development
within the City or as it relates to other Development Charge
projects. As an example the development in Doon South
currently taking place may have a negative impact on the
creek. Increased run-off or other deleterious effects such as
erosion due to changes in peak flows may require
rehabilitation of the creek. Development Charge funding
will be required to evaluate and rectify any negative impact
this type of future development may cause.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
Miscellaneous (Project 2014 - 2031)1LS$1,800,000$1,800,000
Sub-total$1,800,000
Total Project Cost$1,800,000
Attributable to new growth100%$1,800,000
Growth Related Balance Required$1,800,000
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Development Charges Project Shee
t
Schneider Creek Watercourse
PRJ. NAMEPROJECT #SW9
Sanitary Pumping Station Capacity Upgrades
PROJECTPRJ. TYPESWM
Manitou Drive to Hayward Avenue; Homer Watson to Grand
LOCATION
River
Revised April 2014
PROJECT
DESCRIPTION
KEY MAP
The Class Environmental Study Report for Schneider Creek
between Manitou Drive and Hayward Avenue has been
completed. Preferred alternatives are broken into 3 reaches.
Reach 1 has been constructed. Reach 2&3 cost estimates
have been updated. It is also proposed to undertake
remedial work on the creek from Homer Watson to the
Grand River due to extensive erosion problems and an EA
will be required. The inclusion of this project in the DC fund
was established at the OMB.
ESTIMATE
DESCRIPTION
QTYUNITCOST PERTOTAL COST
Phase 1 - stage 2 - Hydro crossing to rail crossing1LS$ 3,409,675$3,409,675
Phase 1 - stage 3 - Rail Crossing - Manitou1LS$ 669,100$669,100
Contingency(stage2&3only)yy20%$815755,
Contingenc(stage2&3onl)20%$815755
Engineering and Const. Services (Phase 1 - Stage 2&3 on20%$978,906
Total Phase 1$5,873,436
Phase 2: Grand River to Homer Watson
water course work3500m$1,500$5,250,000
Contingency (Phase 2)20%$1,050,000
Engineering and Construction Services (Phase 2)20%$1,260,000
Total Phase 2$7,560,000
Environmental Assessment (update for Phase 2)$100,000
Total Project Cost (Phase 1 & 2)$13,533,436
Attributable to new growth (residential)30%$4,060,031
Attributable to new growth (non-residential)20%$2,706,687
Non development charge (capital)50%$6,766,718
Existing DC in capital account$273,686
Growth Related Balance Required$6,494,000
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Development Charges Project Shee
t
PRJ. NAMEStrasburg Road NorthPROJECT #R6
PROJECTRoad ExtensionPRJ. TYPERoad
Strasburg Road from its present terminus to 880m North of
LOCATION
Stauffer Drive
Revised April 2014
PROJECT
DESCRIPTIONKEY MAP
The City has completed the detail design of Strasburg Road
extension from its present terminus to 880m North of
Stauffer Drive. This is a secondary collector road and will
provide an alternate access to the Brigadoon and Doon
south area. This road will also cross the South branch of
Strasburg Creek. This project includes construction of four
lane road with multi-use trail, a bridge, landscaping, signals,
street lights and installation of noise wall along portion of the
road and a wildlife passage culvert.
ESTIMATE
DESCRIPTIONQTYUNITCOST PERTOTAL COST
1LS$12,106,554,,
RoadExtension(1200minlengthincludinggradingroadx,u,
RoadEtension(1200minlengthincldinggradingroad 1LS$12106554
works, new bridge, sound wall
and wildlife passage)
Contingency10%$1,210,655
Sub-Total$13,317,209
Engineering and Consultant Services10%$1,331,721
KW Hydro Cost (street Lighting)1LS$700,000
Total Project Cost$16,559,586
Attributable to new growth100%$16,559,586
Growth Related Balance Required$16,560,000
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233
APPENDIX E
RESERVE FUNDS
HEMSONHEMSON
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APPENDIX D
TABLE 1
CITY OF KITCHENER
2014 DEVELOPMENT CHARGES BACKGROUND STUDY
DEVELOPMENT CHARGES RESERVE FUND BALANCES AS AT DECEMBER 31, 2013
1
Adjusted
Uncommitted
Reserve FundReserve Fund
ServiceBalance as atBalance as at
Dec. 31, 2013Dec. 31, 2013
Library($438,588)($420,831)
Indoor Recreation$1,731,956$1,661,835
Outdoor Recreation($1,404,366)($1,347,508)
Parking($4,474,517)($4,275,178)
Cemeteries$83,338$79,964
Growth-Related Studies($596,742)($570,157)
Total Discounted Services($5,098,919)($4,871,876)
Roads($19,425,562)($19,425,562)
Sanitary Sewer$16,682,405$16,682,405
Watermains$1,128,812$1,128,812
Storm/Watercourse$4,879,973$4,879,973
Fire Protection($373,076)($373,076)
2
Public Works
($3,650,068)($3,650,068)
Engineering Studies($789,800)($789,800)
Intensification Allowance($469,004)($469,004)
Total Non-Discounted Services($2,016,320)($2,016,320)
Total Development Charge Reserve Funds($7,115,239)($6,888,196)
Source:CityofKitchenerReserveFundTransactionReport2013,TableE.
Notes:
1.Adjustedtoremovepriorcontributionsfromdowntowndevelopment.
2.PublicWorksserviceto2013wastreatedasanondiscountedservice.
HEMSON
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APPENDIX F
CAPITAL AND OPERATING COST IMPACT ANALYSIS
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237
APPENDIX F
TABLE 2 - PAGE 1
CITY OF KITCHENER
SUMMARY OF TAX SUPPORTED FUNDING REQUIREMENTS
Net Capital Cost of2014201520162017201820192020202120222023TOTAL
Development-Related Projects($000)($000)($000)($000)($000)($000)($000)($000)($000)($000)($000)
LIBRARY
Total Net Cost (1)3,128.92,841.92,808.92,583.92,583.93,871.96,524.96,418.92,583.92,583.935,931.1
Net Cost From Development Charges (2)1,221.21,047.71,027.8891.8891.8853.1853.1853.1853.1853.19,345.5
Net Cost From Non-DC Sources1,907.71,794.21,781.11,692.21,692.23,018.95,671.95,565.91,730.91,730.926,585.6
- Discount Portion (3)198.1178.8176.6161.5161.5290.3555.6545.0161.5161.52,590.6
- Available DC Reserves (4)324.2324.2324.2324.2324.2324.2324.2324.2324.2324.23,242.0
- Replacement & Benefit to Existing1,147.71,053.51,042.6968.8968.8968.8968.8968.8968.8968.810,025.3
- For Post 2023 Development (5)237.7237.7237.7237.7237.71,435.63,823.33,727.9276.4276.410,727.7
FIRE PROTECTION
Total Net Cost (1)180.0100.0100.0100.0100.0100.0189.0100.0100.0826.81,895.8
Net Cost From Development Charges (2)113.2100.0100.0100.0100.0100.0114.7100.0100.0826.81,754.7
Net Cost From Non-DC Sources66.80.00.00.00.00.074.30.00.00.0141.1
- Discount Portion (3)0.00.00.00.00.00.00.00.00.00.00.0
- Available DC Reserves (4)0.00.00.00.00.00.00.00.00.00.00.0
- Replacement & Benefit to Existing66.80.00.00.00.00.074.30.00.00.0141.1
- For Post 2023 Development (5)0.00.00.00.00.00.00.00.00.00.00.0
INDOOR RECREATION
Total Net Cost (1)0.00.00.03,412.0432.01,972.02,745.05,906.04,490.038,203.057,160.0
Net Cost From Development Charges (2)0.00.00.03,070.8221.6902.31,390.24,417.03,926.711,405.125,333.8
Net Cost From Non-DC Sources0.00.00.0341.2210.41,069.71,354.81,489.0563.326,797.931,826.2
- Discount Portion (3)0.00.00.0341.224.6100.3154.5490.8436.33,346.84,894.4
- Available DC Reserves (4)0.00.00.00.00.00.00.00.00.00.00.0
- Replacement & Benefit to Existing0.00.00.00.0185.8969.51,200.3998.2127.04,735.18,215.9
- For Post 2023 Development (5)0.00.00.00.00.00.00.00.00.018,715.918,715.9
OUTDOOR RECREATION
Total Net Cost (1)2,260.52,015.11,488.91,507.91,659.61,711.91,712.26,686.36,687.213,723.839,453.4
Net Cost From Development Charges (2)1,392.61,187.3708.8726.0833.1874.4874.85,351.5627.631.512,607.5
Net Cost From Non-DC Sources868.0827.9780.1781.9826.5837.5837.41,334.86,059.613,692.226,845.9
- Discount Portion (3)176.8153.8101.2103.0117.8122.9122.9620.3620.41,324.03,463.0
- Available DC Reserves (4)0.00.00.00.00.00.00.00.00.00.00.0
- Replacement & Benefit to Existing492.6477.5477.1477.9481.2483.3483.3483.2483.5483.34,823.0
- For Post 2023 Development (5)198.5196.7201.8201.0227.4231.4231.2231.34,955.711,884.918,559.9
PUBLIC WORKS
Total Net Cost (1)4,868.65,302.95,302.95,302.95,302.95,302.95,302.95,302.95,302.95,302.952,594.7
Net Cost From Development Charges (2)751.8968.9968.9968.9968.9968.9548.8548.8548.8548.87,791.4
Net Cost From Non-DC Sources4,116.84,334.04,334.04,334.04,334.04,334.04,754.14,754.14,754.14,754.144,803.3
- Discount Portion (3)0.00.00.00.00.00.00.00.00.00.00.0
- Available DC Reserves (4)617.6617.6617.6617.6617.6617.6617.6617.6617.6617.66,175.6
- Replacement & Benefit to Existing2,377.32,594.42,594.42,594.42,594.42,594.42,594.42,594.42,594.42,594.425,727.3
- For Post 2023 Development (5)1,122.01,122.01,122.01,122.01,122.01,122.01,542.11,542.11,542.11,542.112,900.5
PARKING
Total Net Cost (1)2,763.72,763.72,763.72,763.72,763.72,763.72,763.72,763.72,763.78,403.733,276.6
Net Cost From Development Charges (2)567.2567.2567.2567.2567.2567.2567.2567.2567.2567.25,671.9
Net Cost From Non-DC Sources2,196.52,196.52,196.52,196.52,196.52,196.52,196.52,196.52,196.57,836.527,604.7
- Discount Portion (3)228.7228.7228.7228.7228.7228.7228.7228.7228.7756.92,815.0
- Available DC Reserves (4)800.0800.0800.0800.0800.0800.0800.0800.0800.0800.08,000.0
- Replacement & Benefit to Existing476.9476.9476.9476.9476.9476.9476.9476.9476.9834.55,126.5
- For Post 2023 Development (5)690.9690.9690.9690.9690.9690.9690.9690.9690.95,445.111,663.2
CEMETERIES
Total Net Cost (1)0.089.4425.2417.7409.50.00.00.00.01,019.92,361.7
Net Cost From Development Charges (2)0.010.650.449.548.50.00.00.00.0120.8279.7
Net Cost From Non-DC Sources0.078.8374.8368.2361.00.00.00.00.0899.12,081.9
- Discount Portion (3)0.02.511.711.511.30.00.00.00.028.064.9
- Available DC Reserves (4)0.00.00.00.00.00.00.00.00.00.00.0
- Replacement & Benefit to Existing0.064.8308.2302.9296.90.00.00.00.0739.41,712.2
- For Post 2023 Development (5)0.011.554.953.952.90.00.00.00.0131.6304.8
GROWTH-RELATED STUDIES
Total Net Cost (1)261.8519.6503.1303.7183.4278.7117.882.593.092.72,436.3
Net Cost From Development Charges (2)176.5327.7310.6188.7120.0205.870.059.862.165.41,586.8
Net Cost From Non-DC Sources85.3191.9192.5115.063.372.947.822.630.927.3849.5
- Discount Portion (3)19.636.434.521.013.322.97.86.66.97.3176.3
- Available DC Reserves (4)0.00.00.00.00.00.00.00.00.00.00.0
- Replacement & Benefit to Existing65.7155.5158.094.050.050.040.016.024.020.0673.2
- For Post 2023 Development (5)0.00.00.00.00.00.00.00.00.00.00.0
Notes: (1) For total development-related capital program see Appendix B.
(2) Share of capital program to be funded from development charges if calculated rates are fully implemented
(3) Mandatory 10% reduction for applicable services
(4) Portion of development-related capital program funded from DC reserves.
(5) Post 2023 development-related net capital costs may be eligible for development charges in future DC by-laws, but interim financing of this share may be required
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238
APPENDIX F
TABLE 2 - PAGE 2
CITY OF KITCHENER
SUMMARY OF TAX SUPPORTED FUNDING REQUIREMENTS
Net Capital Cost of2014201520162017201820192020202120222023TOTAL
Development-Related Projects($000)($000)($000)($000)($000)($000)($000)($000)($000)($000)($000)
SANITARY SERVICING
Total Net Cost (1)4,578.813,352.69,277.33,098.22,010.25,918.85,491.796.04,803.89,361.657,988.9
Net Cost From Development Charges (2)3,092.99,818.77,231.72,521.61,433.65,342.25,424.528.84,736.69,294.448,924.9
Net Cost From Non-DC Sources1,485.93,533.92,045.6576.6576.6576.667.267.267.267.29,064.0
- Discount Portion (3)0.00.00.00.00.00.00.00.00.00.00.0
- Available DC Reserves (4)0.069.60.00.00.00.00.00.00.00.069.6
- Replacement & Benefit to Existing1,485.93,464.32,045.6576.6576.6576.667.267.267.267.28,994.4
- For Post 2031 Development (5)0.00.00.00.00.00.00.00.00.00.00.0
ROADS AND RELATED
Total Net Cost (1)780.01,127.61,068.0780.0780.0780.06,299.96,299.911,048.91,530.030,494.1
Net Cost From Development Charges (2)780.01,127.61,068.0780.0780.0780.06,299.96,299.911,048.91,530.030,494.1
Net Cost From Non-DC Sources0.00.00.00.00.00.00.00.00.00.00.0
- Discount Portion (3)0.00.00.00.00.00.00.00.00.00.00.0
- Available DC Reserves (4)0.00.00.00.00.00.00.00.00.00.00.0
- Replacement & Benefit to Existing0.00.00.00.00.00.00.00.00.00.00.0
- For Post 2031 Development (5)0.00.00.00.00.00.00.00.00.00.00.0
WATERMAINS
Total Net Cost (1)0.00.00.00.00.0545.70.00.0404.53,263.74,213.9
Net Cost From Development Charges (2)0.00.00.00.00.0545.70.00.0404.52,361.23,311.4
Net Cost From Non-DC Sources0.00.00.00.00.00.00.00.00.0902.5902.5
- Discount Portion (3)0.00.00.00.00.00.00.00.00.00.00.0
- Available DC Reserves (4)0.00.00.00.00.00.00.00.00.00.00.0
- Replacement & Benefit to Existing0.00.00.00.00.00.00.00.00.0902.5902.5
- For Post 2031 Development (5)0.00.00.00.00.00.00.00.00.00.00.0
ENGINEERING STUDIES
Total Net Cost (1)442.7343.5343.2342.9343.5443.2321.5321.5321.4321.43,544.7
Net Cost From Development Charges (2)442.7343.5343.2342.9343.5443.2321.5321.5321.4321.43,544.7
Net Cost From Non-DC Sources0.00.00.00.00.00.00.00.00.00.00.0
- Discount Portion (3)0.00.00.00.00.00.00.00.00.00.00.0
- Available DC Reserves (4)0.00.00.00.00.00.00.00.00.00.00.0
- Replacement & Benefit to Existing0.00.00.00.00.00.00.00.00.00.00.0
- For Post 2031 Development (5)0.00.00.00.00.00.00.00.00.00.00.0
INTENSIFICATION ALLOWANCE
Total Net Cost (1)250.0250.0250.0250.0250.0250.0250.0250.0250.0250.02,500.0
Net Cost From Development Charges (2)166.7166.7166.7166.7166.7166.7166.7166.7166.7166.71,666.7
Net Cost From Non-DC Sources83.383.383.383.383.383.383.383.383.383.3833.3
- Discount Portion (3)0.00.00.00.00.00.00.00.00.00.00.0
- Available DC Reserves (4)0.00.00.00.00.00.00.00.00.00.00.0
- Replacement & Benefit to Existing83.383.383.383.383.383.383.383.383.383.3833.3
- For Post 2031 Development (5)0.00.00.00.00.00.00.00.00.00.00.0
STORM/WATERCOURSE
Total Net Cost (1)0.0105.96,665.76,768.4764.4105.9355.9105.96,747.66,747.628,367.2
Net Cost From Development Charges (2)0.0105.91,399.7772.1764.4105.9105.9105.93,278.13,426.710,064.5
Net Cost From Non-DC Sources0.00.05,266.15,996.30.00.0250.00.03,469.53,320.918,302.7
- Discount Portion (3)0.00.00.00.00.00.00.00.00.00.00.0
- Available DC Reserves (4)0.00.087.70.00.00.0125.00.0148.70.0361.4
- Replacement & Benefit to Existing0.00.05,178.45,996.30.00.0125.00.03,320.93,320.917,941.3
- For Post 2031 Development (5)0.00.00.00.00.00.00.00.00.00.00.0
TOTAL MUNICIPAL SERVICES
Total Net Cost (1)19,515.028,812.130,996.827,631.317,583.024,044.632,074.434,333.545,596.991,630.8352,218.4
Net Cost From Development Charges (2)8,704.715,771.613,942.911,146.17,239.211,855.216,737.118,820.026,641.631,519.0162,377.5
Net Cost From Non-DC Sources10,810.313,040.517,053.916,485.210,343.812,189.315,337.315,513.418,955.360,111.8189,841.0
- Discount Portion (3)623.2600.2552.7866.8557.2765.01,069.41,891.41,453.85,624.614,004.3
- Available DC Reserves (4)1,741.81,811.41,829.41,741.81,741.81,741.81,866.81,741.81,890.41,741.817,848.6
- Replacement & Benefit to Existing6,196.38,370.212,364.611,571.15,714.06,202.86,113.65,688.18,146.114,749.585,116.1
- For Post Period Development (5)2,249.12,258.72,307.22,305.52,330.83,479.86,287.56,192.27,465.137,996.072,872.0
Notes: (1) For total development-related capital program see Appendix B.
(2) Share of capital program to be funded from development charges if calculated rates are fully implemented
(3) Mandatory 10% reduction for applicable services
(4) Portion of development-related capital program identified as available DC reserves (to be funded from present Development Charge reserve fund balances).
(5) Post Period development-related net capital costs may be eligible for development charges in future DC by-laws, but interim financing of this share may be required
(6) Hard Services Capital Programs extend to 2031, however only ten-year funding requirements are shown in this table.
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239
APPENDIX G
DEVELOPMENT CHARGES
ENGINEERED SERVICES MAP
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F
SO
I
I
LANCASTER ST W
Y
D
E
IRA NEEDLES BLVD
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Appendix C
BY-LAW NUMBER
OF THE
CORPORATION OF THE CITY OF KITCHENER
(Being a by-law to establish development charges
for the City of Kitchener and to repeal Development
Charge By-law No. 2009-091 as amended by
By-law No. 2010-086 and By-law No. 2010-106)
WHEREAS the City will experience growth through development and
redevelopment of land which will increase the need for services to be provided by the City;
AND WHEREAS section 2(1) of the Development Charges Act, 1997, S.O. 1997, c.
27 (the "Development Charges Act") enables the Council to pass by-laws for the imposition of
development charges against land to pay for increased capital costs required because of increased
needs for services arising from the development or redevelopment of land;
AND WHEREAS Council wishes to ensure that the capital cost of meeting growth
related demands for services is met but does not place a financial burden upon the City's existing
taxpayers, and also that new taxpayers bear no more than the net capital cost attributable to
providing the current level of services;
AND WHEREAS the City has undertaken a Development Charges Background
Study, dated April, 2014, to forecast, to the year 2031 for engineering services and to the year 2023
for all other services, growth within the municipality through development and redevelopment, to
determine the need for services at specified service standards resulting from growth and to calculate
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the net capital costs of services attributable to growth (the "Study");
AND WHEREAS Council, in accordance with section 12 of the Development
Charges Act and section 9 of Ontario Regulation 82/98, gave notice on April 4, 2014 of a public
meeting to consider the passing of a development charges by-law, made available before and at the
public meeting sufficient information to enable the public to understand generally the development
charges proposal, held the public meeting on ___________ and heard representations from all
persons who applied to be heard whether in objection to or in support of the proposal;
AND WHEREAS Council, by resolution dated ___________, has indicated that it intends
to ensure that the increase in the need for services attributable to the anticipated development will be
met, subject to sufficient development charge revenues being generated and other City affordability
criteria being met;
AND WHEREAS Council, by resolution dated____________, has indicated its intent that
the future excess capacity identified in the Study shall be paid for by the development charges or
other similar charges;
AND WHEREAS Council, by resolution dated __________adopted the capital forecasts
prepared in conjunction with the Development Charges Background Study for the City of Kitchener
dated April, 2014;
AND WHEREAS Council, having reviewed the Study and the proposed by-law and having
considered all of the representations made at the public meeting, directed that this by-law be
enacted;
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NOW THEREFORE the Council of The Corporation of the City of Kitchener enacts as
follows:
Article 1
Short Title
1.1This By-law may be cited as the “Development Charges By-law”.
Article 2
Interpretation
In this by-law, the following definitions apply:
"accessory use"
2.1 means a use, including a building, which is commonly incidental,
subordinate and exclusively devoted to the main use or main building situate on the same lot;
"agricultural use"
2.2 means the use of land and buildings for apiaries, fish farming, animal
husbandry or the cultivation of trees, shrubs, flowers, grains, sod, fruits, vegetables and other
crops or ornamental plants ("agricultural products") but shall not include any building or
structure where agricultural products are displayed for sale in more than twenty-five per cent
of the gross floor area of such building or structure;
"capital cost"
2.3 means costs incurred or proposed to be incurred by the City or a local board
thereof directly or by others on behalf of, and as authorized by, the City or a local board
thereof,
i) to acquire land or an interest in land, including a leasehold interest and land
for an enclosed structure used throughout the year for public recreation and
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land that is necessary for the structure to be used for that purpose, including
parking and access to the structure,
ii) to improve land,
iii) to acquire, lease, construct or improve buildings and structures,
iv) to acquire, lease, construct or improve facilities including,
1) rolling stock with an estimated useful life of seven years or more,
furniture and equipment other than computer equipment, and
2) materials acquired for circulation, reference or information purposes
by a library board as defined in the Public Libraries Act, R.S.O. 1990,
c.P.44, and
v) to undertake studies in connection with any of the matters in clauses i) to iv),
and the development charge background study required under section 10 of
the Development Charges Act, required for the provision of services
designated in this by-law within or outside the City, including interest on
borrowing for those expenditures under clauses i), ii), iii) and iv);
"development"
2.4 includes redevelopment;
"development charge"
2.5 means a charge imposed with respect to growth-related net capital
costs against land under this by-law;
"duplex"
2.6 means a dwelling or residential building divided predominantly horizontally into
two dwelling units;
"dwelling unit"
2.7 means a room or suite of rooms which:
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i) is located in a building (including a non-residential building),
ii) is occupied or designed to be occupied by a household as a single, independent and
separate housekeeping establishment,
iii) contains both a kitchen and bathroom for the exclusive common use of the occupants
thereof, and
iv) has a private entrance leading directly from outside the building or from a common
hallway or stairway inside the building;
"excess capacity"
2.8 means uncommitted excess capacity but excludes uncommitted excess
capacity if, either before or at the time the excess capacity was created, the Council of the
City expressed a clear intention that the excess capacity would be paid for by development
charges or other similar charges;
"existing industrial building"
2.9 means a building or buildings existing on a site in the City of
Kitchener on June 1, 2014 or the first building or buildings constructed and occupied on a
vacant site pursuant to site plan approval under section 41 of the Planning Act, R.S.O. 1990,
c.P.13 (the "Planning Act") subsequent to June 1, 2014 for which full development charges
were paid, and is used for or in connection with,
(i) the production, compounding, processing, packaging, crating, bottling, packing or
assembling of raw or semi-processed goods or materials in not less than seventy-five
per cent of the total gross floor area of the building or buildings on asite
("manufacturing") or warehousing;
(ii)research or development in connection with manufacturing in not less than seventy-
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five percent of the total gross floor area of the building or buildings on a site;
(iii) retail sales by a manufacturer, if the retail sales are at the site where the
manufacturing is carried out, such retail sales are restricted to goods manufactured at
the site, and the building or part of a building where such retail sales are carried out
does not constitute greater than twenty-five per cent of the total gross floor area of
the building or buildings on the site; or
(iv) office or administrative purposes, if they are,
(1) carried out with respect to manufacturing or warehousing; and
(2) in or attached to the building or structure used for such manufacturing or
warehousing;
"floor area"
2.10 means the area of floors of a building or structure measured between the
outside surfaces of exterior walls or between the outside surfaces of exterior walls and the
centre line of party walls, and in the case of a dwelling unit includes only those floor areas
above grade. This shall not include any area which is specifically designed for parking and
is not being used for the repair or sale of vehicles;
"grade"
2.11 means the average level of finished ground adjoining a dwelling unit at all exterior
walls;
"gross floor area"
2.12 means the total floor area of a building or structure;
"growth-related net capital cost"
2.13 means the portion of the net capital cost of services that
is reasonably attributable to the need for such net capital cost that results or will result from
the anticipated development in all or a defined part of the City less the City's excess capacity
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and the extent to which an increase in service to meet the increased need will benefit existing
development within the City;
"home business"
2.14 means a vocational use, as permitted by the applicable City zoning by-
law, conducted in a dwelling unit which is secondary to the use of the dwelling unit as a
private residence;
“hospital”
2.15means a hospital as defined in the Public Hospitals Act, R.S.O. 1990, c. P.40;
"household"
2.16 means one or more persons living together as a single non-profit,
housekeeping unit, sharing all areas of the dwelling unit and may, in addition, be designed
to accommodate lodging units containing less than four residents;
"local board"
2.17 means a municipal service board, transportation commission, public library
board, board of health, police services board, planning board or any other board,
commission, committee, body or local authority established or exercising any power under
any Act with respect to any of the affairs or purposes of the City or the Regional
Municipality of Waterloo (the "Region") or any part or parts thereof, excluding a school
board, a conservation authority and any other board excluded under any general or special
Act;
"local services"
2.18 means 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, or as a condition of approval under section 53 of the Planning
Act;
"lodging house"
2.19 means a dwelling or residential building containing one or more lodging
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units designed to accommodate four or more residents. The residents may share common
areas of the dwelling other than the lodging units, and do not appear to function as a
household. This shall not include a group home, nursing home, hospital or any residential
care facility licensed, approved, or supervised under any general or specific Act, or a hotel or
motel. This shall include but not be limited to student residences, convents, unlicensed
nursing homes and tourist homes;
"lodging unit"
2.20 means a room or set of rooms located in a lodging house designed or
intended to be used for sleeping and living accommodation, which:
i) is designed for the exclusive use of the resident or residents of the unit;
ii) is not normally accessible to persons other than the resident or residents of the unit;
and
iii) may contain either a bathroom or kitchen but does not contain both for the exclusive
use of the resident or residents of the unit;
"multiple dwelling"
2.21 means a dwelling or residential building containing three or more
dwelling units, but shall not include townhouse or row dwellings;
"net capital cost"
2.22 means the capital cost less capital grants, subsidies and other
contributions made to the City or that the Council of the City anticipates will be made but
only to the extent that the grant, subsidy or other contribution is clearly intended by the
person making it to benefit new development and includes conveyances or payments under
sections 42, 51.1 and 53 of the Planning Act, in respect of the capital cost;
"non-residential use"
2.23 means the use of land, building or structures for a use other than
residential use, including all commercial, industrial and institutional uses and excluding
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agricultural uses;
"owner"
2.24 means the owner of land or a person who has made application for an approval
for the development or redevelopment of land upon which a development charge is
imposed;
"residential use"
2.25 means the use of land, buildings or structures for one or more single
detached, semi-detached, townhouse, row dwelling, multiple dwelling or duplex dwelling
units and lodging houses;
"semi-detached dwelling"
2.26 means a dwelling or residential building divided predominantly
vertically into two dwelling units;
"services"
2.27 means services designated in Schedule "A" attached to this by-law;
"single-detached dwelling"
2.28 means a dwelling or residential building consisting of one
dwelling unit and not attached to another residential structure, and shall include a mobile
home located on a foundation;
"site"
2.29 means a parcel of land which can be legally conveyed pursuant to section 50 of the
Planning Act and includes a development having two or more lots consolidated under one
identical ownership;
"townhouse or row dwelling"
2.30 means a dwelling or residential building divided
predominantly vertically into three or more attached dwelling units, each of which has a
separate entrance from the outside; and
"warehousing"
2.31means a building or buildings on a site having not less than seventy-five per
cent of the total gross floor area of such building orbuildings used for the storage or
distribution of goods or materials.
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Article 3
Application and Exemptions
3.1 Subject to section 3.2, this by-law applies to all lands within the City of Kitchener and any
lands outside the City of Kitchener to which services are provided by the City, whether or
not the land or use thereof is exempt from taxation under section 3 of the Assessment Act,
R.S.O. 1990, c.A.31.
3.2 This by-law does not apply to land owned by and used for the purposes of:
(a) a board of education as defined by subsection 1(1) of the Education Act, R.S.O.
1990, c.E.2;
(b) the City of Kitchener or any local board thereof;
(c) the Region or any local board thereof;
(d) any area municipality within the Region; and
(e) the Crown in right of Ontario or the Crown in right of Canada.
3.3 Notwithstanding section 3.1., the following lands shall be exempt from the payment of
development charges as of the effective date specified:
(a)all lands within the Existing Downtown Core Boundary, the limits of which is
shown in Schedule ‘C’ effective as of July 1, 2014;
(b)all lands within the Existing Downtown Core Boundary and the Expanded
Downtown Core Boundary as shown in Schedule ‘C’ effective as of July 1, 2016.
It is further noted that Council has expressed the intention to discontinue the Downtown
Exemption as set out in this section by March 1, 2019 or the repeal of this By-law,
whichever ever occurs first; said discontinuance to be in advance of the next
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Development Charges Background Study and By-law, currently anticipated for 2019.
3.4 Subject to sections 3.5 to 3.10 inclusive, development charges shall apply on land to be
developed or redeveloped for residential and non-residential use, where:
(a) the development or redevelopment of the land will increase the need for services;
and
(b) the development or redevelopment requires one or more of the approvals which
follow:
(i) the passing of a zoning by-law or of an amendment thereto under section 34
of the Planning Act, R.S.O. 1990, c. P. 13;
(ii)the approval of a minor variance under section 45 of the Planning Act, R.S.O.
1990, c. P. 13;
(iii)a conveyance of land to which a by-law passed under subsection 50(7) of the
Planning Act, R.S.O. 1990, c. P. 13 applies;
(iv) the approval of a plan of subdivision under section 51 of the Planning Act,
R.S.O. 1990, c. P. 13;
(v) a consent under section 53 of the Planning Act, R.S.O. 1990, c. P. 13;
(vi) the approval of a description under section 9 of the Condominium Act, S.O.
1998, c. 19; or
(vii) the issuing of a permit under the Building Code Act, 1992, S.O. 1992, c.23
(the "Building Code"), in relation to a building or structure.
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3.5 Section 3.4 shall not apply in respect of,
(a) local services; or
(b) local connections to water mains, sanitary sewers and storm drainage facilities
installed at the expense of the owner including amounts imposed under a by-law
passed under section 326 of the Municipal Act, 2001, c. 25, as amended.
3.6 Where two or more of the actions described in section 3.4 are required before the land to
which a development charge applies can be developed or redeveloped, only one
development charge shall be imposed, calculated and collected in accordance with the
provisions of this by-law.
3.7 Despite section 3.6, if two or more of the actions described in section 3.4 occur at different
times and if the subsequent action or actions has the effect of increasing the need for services
as designated in this by-law, additional development charges shall be imposed, calculated
and collected in accordance with the provisions of this by-law.
3.8 Despite section 3.4, any subdivision agreement or development agreement made under
section 51 or section 53 of the Planning Act R.S.O. 1990, c. P.13 or any predecessor
thereof, which provides for the payment of a lot levy, development charge, capital
contribution or other charge shall remain in full force and effect, be enforceable according
to its terms and prevail to the extent that there is any conflict with this by-law. This section,
however, shall not apply with respect to any lot or block which is further subdivided by a
.
new plan of subdivision orconsent
3.9 Where there is a conflict between the charge specified in an agreement set out in section 3.8
or in a condition of draft plan approval for a plan of condominium and the development
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charge specified in this by-law, the lower charge shall apply.
3.10 Section 3.4 shall not apply to:
(a) a temporary use permitted under a zoning by-law enacted under sections 39
or 39.1of the Planning Act, R.S.O. 1990, c.P.13;
(b) an accessory use to residential uses;
(c) a home business;
(d) an agricultural use;
(e) temporary erection of a building without foundation for a period not
exceeding six consecutive months and not more than six months in any one
calendar year on a site for which development charges or lot levies have
previously been paid; and
(f) the enlargement of an existing dwelling unit or the creation of up to two
additional dwelling units as prescribed by Ontario Regulation 82/98 and set
out in Schedule "D" attached hereto, and as such Regulation may be
amended from time to time, provided that:
(i) the number of dwelling units created in the renovated or enlarged
residential building does not exceed the applicable maximum number of
additional dwelling units set out in Schedule "D" attached hereto, and the
total gross floor area of the additional dwelling units does not exceed the
applicable maximum gross floor area provisions set out in Schedule "D"
attached hereto; and
(ii) no more than one or two additional dwelling units in accordance with
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this subsection may ever be created without the imposition of development
charges.
3.11 Development charges as set out in Articles 4, 5 and 6 of this by-law shall apply to all lands
that are developed or redeveloped for residential and non-residential use in accordance with
this by-law, but only insofar as,
(a) the growth-related net capital costs of services are attributable to residential or non-
residential use, as the case may be; and
(b) the growth-related net capital cost of each service is attributable to the anticipated
development and at standards no higher than the average level of each such service
provided by the City over the ten year period immediately preceding the preparation
of the Study.
3.12 The rates set out in Schedule "B" attached hereto shall be determined so as to reflect a ten
per cent reduction to the growth-related net capital costs, except that there shall be no
percentage reduction for the following growth-related net capital costs:
(a) water supply services, including distribution and treatment services;
(b) waste water services, including sewers and treatment services;
(c) storm water drainage and control services;
(d) services related to a highway as defined in section 26 of the Municipal Act, 2001, c.
25 as amended; and
(e) fire protection services.
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Article 4
Residential Development Charges
4.1 Development charges against land to be developed or redeveloped for residential use shall be
based upon the services to be provided by the City which are designated in Schedule "A"
attached hereto.
4.2 Subject to the provisions of this by-law, development charges are hereby imposed against
land to be developed or redeveloped for residential use located within the Suburban Area the
boundary of which is shown on Schedule “C-2” attached hereto and shall be calculated and
collected at the rates set out in Schedule "B" attached hereto.
4.3 Subject to the provisions of this by-law, development charges are hereby imposed against
land to be developed or redeveloped for residential use located within the Central
Neighbourhoods the boundary of which is shown on Schedule “C-1” attached hereto and
shall be calculated and collected at the rates set out in Schedule “B” attached hereto.
4.4 Subject to the provisions of this by-law, development charges against land to be developed
or redeveloped for mixed residential use shall be the aggregate of the amount applicable for
each dwelling unit according to its type as set forth in Schedule "B" attached hereto.
Article 5
Non-residential Development Charges
5.1 Development charges against land to be developed or redeveloped for non-residential use
shall be based upon the services to be provided by the City which are designated in Schedule
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"A" attached hereto.
5.2 Subject to the provisions of this by-law, development charges are hereby imposed against
land to be developed or redeveloped for non-residential use located in the Suburban Area the
boundary of which is shown on Schedule “C-2” attached hereto and shall be calculated and
collected at the rate set out in Schedule "B" attached hereto.
5.3 Subject to the provisions of this by-law, development charges are hereby imposed against
land to be developed or redeveloped for non-residential use in the Central Neighbourhoods
the boundary of which is shown on Schedule “C-1”attached hereto and shall be calculated
and collected at the rate set out in Schedule “B” attached hereto.
5.4 Despite anything in this by-law, there shall be an exemption from the payment of
development charges for one or more enlargements of an existing industrial building on its
site, whether attached or separate from the existing industrial building, up to a maximum of
fifty per cent of the gross floor area before the first enlargementfor which an exemption
from the payment of development charges was granted pursuant to the Development
Charges Act or this section. Development charges shall be imposed in accordance with
Schedule “B” with respect to the amount of floor area of an enlargement that results in the
gross floor area of the industrial building being increased by greater than fifty per cent of the
gross floor area of the existing industrial building.
5.5 For the purpose of this section, despite any new sites created which result in an existing
industrial building being on a site separate from its enlargement or enlargements for which
an exemption was granted under this Article, further exemptions, if any, pertaining to the
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existing industrial building shall be calculated in accordance with section 6.4 on the basis of
its site prior to any division.
5.6 Despite anything in this by-law, there shall be an exemption from the payment of
development charges in respect of any enlargement of a hospital.
Article 6
Mixed Use
6.1 Subject to the provisions of this by-law, development charges against land to be developed
or redeveloped for mixed residential and non-residential use shall be the aggregate of the
amount applicable to the residential component and the amount applicable to the gross floor
area of the non-residential component.
Article 7
Administration
Payment
7.1 All development charges required to be paid to the City pursuant to this by-law shall be paid
by cash or certified cheque and directed to the City's Chief Building Official.
Calculations
7.2 Subject to the provisions of this Article, development charges shall be calculated and
payable in full on the date that a building permit is issued in relation to a building or
structure on land to which a development charge applies.
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7.3 Where development charges apply to land where a building permit is required, no building
permit shall be issued until the development charge is paid in full.
7.4 Despite section 6.1, the City may require that development charges applicable with respect
to the services described in subsections 3.12 (a) to (d) inclusive of this by-law ("Engineering
Services"), be calculated as set forth in Schedule "B" hereto and payable immediately upon
the execution of a subdivision agreement under section 51 of the Planning Act, R.S.O. 1990,
c. P. 13. or a consent agreement under section 53 of the Planning Act, R.S.O. 1990, c. P. 13.,
.
with respect to the lands to which such agreement, as the case may be, relates
Credits
7.5 The City may by agreement permit the owner of land to which development charges apply to
provide services for development or redevelopment of that land in lieu of the payment of all
or any portion of a development charge, including services additional to or of a greater size
or capacity than is required under this by-law ("services in lieu").
7.6 Upon proof of the installation or construction of services in lieu to the satisfaction of the
City's Engineer, a credit, without interest, shall be applied against development charges
payable for an amount equal to the reasonable cost to the owner of providing services in lieu,
as determined by the City's Engineer, not to exceed the total amount of the development
charges otherwise payable.
7.7 Any unused credit may be applied, upon proof satisfactory to the City's Chief Building
Official, to any subsequent development charge payable with respect to the same land as
referred to in section 7.5, or transferred and applied to any development charge payable with
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respect to other land owned by the same owner to be developed or redeveloped with the
consent of the City on terms satisfactory to the City Solicitor.
Redevelopment Allowances
7.8 Subject to the provisions of this Article, where any redevelopment or re-use of land replaces
or changes a former or existing development and, in the case of demolition upon proof of
issuance of a demolition permit for the land being provided, the development charge
applicable to the redevelopment or re-use shall be reduced by a redevelopment allowance,
without interest, not to exceed an amount equal to the total of:
(a) the number and types of legally established residential units in the former or existing
development; and
(b) the legally established non-residential gross floor area of the former or existing
development,
as determined by the City's Deputy Chief Administrative Officer, Community Services and
Chief Building Official at the rates applicable to such units or gross floor area at the time the
first building permit for the re-development is issued.
7.9 No redevelopment allowance shall be made in excess of the development charge payable for
a redevelopment; however, the redevelopment allowance may be carried forward and
applied, upon proof satisfactory to the City's Chief Building Official, to any subsequent
development charge payable with respect to the same land as referred to in section 7.8.
Reserve Funds
7.10 Monies received from payment of development charges shall be maintained in a separate
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reserve fund or funds, and shall be used only to meet the growth-related net capital costs for
which the development charge was imposed under this by-law.
7.11 Income received from investment of the development charge reserve fund or funds shall be
credited to the development charge reserve fund or funds in relation to which the investment
income applies.
7.12 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.
7.13 Where any unpaid development charges are collected as taxes under section 7.12, the monies
so collected shall be credited to the development charge reserve fund or funds referred to in
section 7.10.
Article 8
General Provisions
8.1 This by-law shall be administered by the City's Deputy Chief Administrative Officer,
Community Services; Deputy Chief Administrative Officer, Finance and Corporate Services
and City Treasurer; and the Chief Building Official.
Annual Adjustment
8.2 The development charges set out in Articles 4, 5, 6 and Schedule "B" attached hereto shall
be adjusted annually, without amendment to this by-law, as of the 1st day of January in each
year, commencing on January 1, 2015, in accordance with the index prescribed by Ontario
Regulation 82/98 and as such Regulation may be amended from time to time.
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8.3 The minimum interest rate that the City shall pay under subsection 18(3) and 25(2) of the
Development Charges Act, 1997, c.27 in relation to a development charges by-law shall be
the Bank of Canada interest rate on the day the by-law comes into force and thereafter as
such rate is adjusted on the first business day of every January, April, July and October of
each year.
Article 9
Repeal – Enactment
Term
9.1 This by-law shall come into force and effect on July 1, 2014.
9.2 This by-law shall continue in force and effect for a term not to exceed five years from the
date of its coming in to force and effect unless it is repealed or replaced at an earlier date by
a subsequent by-law.
9.3 Nothing in this by-law shall be construed so as to commit or require the City or its Council
to authorize or proceed with any specific capital project at any specific time.
9.4 Each and every provision of this by-law is severable and, if any provision or provisions of
this by-law should, for any reason, be declared invalid by any court, it is the intention of
Council that each and every of the then remaining provisions of this by-law shall remain in
full force and effect.
9.5 The Clerk is hereby directed to make this by-law a part of The City of Kitchener Municipal
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Code as Chapter 315 by adding it to the Concordance and arranging and numbering it so as
to fit within the scheme of the Code.
9.6 By-law No. 2009-091 as amended by By-law Nos. 2010-086 and 2010-106 and the contents
of Chapter 315 of The City of Kitchener Municipal Code, as amended, are hereby repealed
effective at midnight on June 30, 2014.
PASSED at the Council Chambers in the City of Kitchener this day of
, A.D. 2014.
________________________________________
Mayor
________________________________________
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Clerk
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Schedule ‘A’ to Development Charge By-law
Services - Designations
SERVICES DESIGNATION
Residential/Non-residential
1.Sanitary Servicing
2.Roads and Related
3.Watermains
4.Engineering Studies
5.Intensification Allowance
6.Storm/Watercourse
Residential/Non-residential
7.Public Works
8.Fire Protection
Residential
9.Indoor Recreation
10.Library
11.Outdoor Recreation
12.Cemeteries
Residential/Non-residential
13.Parking
14.Growth-Related Studies
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SCHEDULE ‘B’
DEVELOPMENT CHARGE RATES
Full Full Partial Partial
Services Services Services Services
Central Neighbourhoods Suburban Area Suburban Area Suburban Area
(no sanitary sewer) (no sanitary sewer
or water services)
Residential
Development (effective July 1, 2014)
Single detached $ 5, 480 $ 10, 518 $ 9, 055 $ 8, 843
or semi-detached per dwelling unitper dwelling unitper dwelling unit per dwelling unit
dwelling
Townhouses or $ 3, 883 $ 7, 451 $ 6, 415 $ 6, 265
Row dwelling per dwelling unitper dwelling unitper dwelling unit per dwelling unit
Multiple or $ 3, 024 $ 5, 805 $ 4, 998 $ 4, 881
duplex dwelling per dwelling unitper dwelling unitper dwelling unit per dwelling unit
Lodging house $ 1, 666 $ 3, 199 $ 2, 754 $ 2, 689
per lodging unitper lodging unitper lodging unit per lodging unit
Non-Residential
Development (effective July 1, 2014)
Gross floor area $ 16.37 $ 54.17 $ 43.61 $ 42.18
of building per square metre per square metre per square metre per square metre
$ 1.52 $ 5.03 $ 4.05 $ 3.92
per square footper square footper square foot per square foot
Note: All rates in this schedule are subject to annual indexing as per section 8.2 of this by-law.
1 square metre = 10.76391 square feet.
The development charges are imposed on all lands in THE CITY OF KITCHENER except those shown on
Schedule “C” of the By-law.
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SCHEDULE 'C1'
City of Kitchener
Central Neighbourhoods
Boundary of Central Neighbourhoods
Area to be added to Downtown
Core Boundary (Effective July 1, 2016)
Corporate Services Department
Information Technology - GIS
April 14, 2014
Sources: Parcel Fabric: Teranet (up to Aug 1998),
Strategic Services - I.T. - GIS (1998 - current);
Railways: Finance and Corporate Services - Information
Technology - GIS (July 2004); Street Network: Strategic
Services - I.T. - GIS (Current to date of printing)
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SCHEDULE 'C2'
City of Kitchener Suburban Area
Boundary of Suburban Area
Corporate Services Department
Information Technology - GIS
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Sources: Parcel Fabric: Teranet (up to Aug 1998), Strategic Ser
April 14, 2014
Corporate Services - Information Technology - GIS (July 2004); S
DEVELOPMENT CHARGES
Schedule ‘D’ – Classes of Development
Name of Class of Description of Class of Maximum number of Restrictions
Residential Buildings additional dwelling units
Residential Building
Single detached dwellings Residential buildings, Two The total gross floor
each of which contains a area of the additional
single dwelling unit, that dwelling unit or units
are not attached to other
must be less than or
buildingsequal to the gross
floor area of the
dwelling unit already
in the building
Semi-detached dwellings or Residential buildings, One The gross floor area
Row dwellingseach of which contains a of the additional
single dwelling unit, that
dwelling unit must be
have one or two vertical less than or equal to
walls but no other parts, the gross floor area of
attached to other the dwelling unit
buildingsalready in the
building.
Other residential buildings A residential building not One The gross floor area
in another class of of the additional
residential building dwelling unit must be
described in this tableless than or equal to
the gross floor area of
the smallest dwelling
unit already in the
building.
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