1. HEMSON COUNTY OF OXFORD 2004 DEVELOPMENT CHARGES STUDY COUNCIL BRIEFING May 12, 2004 HEMSON Consulting Ltd.

2. HEMSON INTRODUCTION Objectives of the Meeting To Provide an Overview of Development Charges Study Process & Status Discussion of Development Charges Overview of the Growth-Related Capital Programs Presentation of Calculated Rates Expectations Sharing of the Material for Information No Direction to be Provided on the Capital Program or the Calculated Rates today

3. HEMSON TOPICS What is a Development Charge? Study Objectives Development Charge Process Overview of the DCA, 1997 The County’s Growth Forecast Growth-Related Capital Program & Calculated Rates County “Soft” Services County-wide Roads Area-Specific Water & Sewer Next Steps

4. HEMSON What Is A Development Charge? As The County Grows, New Infrastructure and Facilities Are Required to Provide Necessary Engineering Works and Maintain Service Levels, e.g. Roads, Sewer & Water Infrastructure, Libraries A Development Charge is a Fee Charged to New Development to Finance the Cost of New Growth- Related Capital Facilities and Infrastructure Development Charges Provide a Major Source of Funding for Growth-Related Capital Expenditures – DC’s Help to Protect Existing Taxpayers

5. HEMSON What Is A Development Charge? Residential Development Charges Are Generally Charged on New Housing Units by Type Non-Residential Development Charges Are Generally Charged on New Retail, Commercial, Institutional and Industrial Floor Space (e.g. Sq.m of Gross Floor Area) The Maintenance and Replacement of Existing Facilities and Infrastructure Are Funded Through Tax Dollars, Not Development Charges

6. HEMSON Study Objectives To calculate Development Charges consistent with the Development Charges Act, 1997 (DCA) to recover the maximum allowable portions of growth-related net capital costs To identify the growth-related net capital costs anticipated over the planning period 2004-2013

7. HEMSON Development Charge Process Governed By The Development Charges Act, 1997 (DCA) and Its Accompanying Regulation, O. Reg. 82/98 Steps Required by the DCA: Growth Forecast – Residential and Non-residential Calculation of Historic 10 Year Average Service Levels Determine Growth-Related Capital Requirements Calculate Development Charge Development Charges Background Study Statutory Public Meeting

8. HEMSON Overview Of The Development Charges Act, 1997 The Maximum Life of a DC By-law Is 5 Years From Date of Passage (May Be Repealed/Replaced Earlier) The County’s DC By-laws Expire on August 31, 2004 If a New By-law Is Not Passed the County Cannot Continue to Collect Development Charges

9. HEMSON Overview Of The DCA, 1997 (Cont’d) Service Exclusions cultural and entertainment facilities, including museums, theatres and art galleries tourism facilities including convention centres parkland acquisition including open spaces and trails (except land for indoor recreation buildings) hospitals headquarters for general administration of municipalities and local boards waste management other services prescribed by regulation (none have been prescribed as yet)

10. HEMSON Overview Of The DCA, 1997 (Cont’d) Service Considered 100% Cost Recovery Roads & Related Water Services Wastewater Services 90% Cost Recovery General Government (Studies) Library (excl. Woodstock and Tillsonburg) Long-Term Care Land Ambulance

11. HEMSON Overview Of The DCA, 1997 (Cont’d) Service Levels Form a Key Basis for Calculating the Development Charge Maximum allowable for general services is based on the average service level in the preceding 10 years Provided that council indicates its intent to meet growth-related service needs (e.g. capital forecast, official plan or other ‘similar expression of intent’ must be approved by council)

12. HEMSON County Growth Forecast

13. HEMSON Growth-Related Capital Plan Only Growth Related Costs Can be Included In the Development Charge Portions of Projects Related to Prior Growth, Replacement, or Benefit to Existing Community Must Be Financed By Other Sources Projects Oversized for Future Growth May Be Recovered from Future Development

14. HEMSON Calculated Rates Are Maximum Charges The Rates As Calculated Are The Maximum Charge Based On Identified Growth Related Capital Needs Reducing the Rates Will Shift Growth- Related Costs to Taxes or Reduce the Capital Program

15. HEMSON Soft Services – Growth Related Capital Plan

16. HEMSON Soft Services – County-Wide Calculated Rates

17. HEMSON Roads – Growth-Related Capital Plan

18. HEMSON Roads – County-Wide Calculated Rates

19. HEMSON Sewer & Water – Capital Plan: Woodstock

20. HEMSON Sewer & Water – Calculated Rates: Woodstock

21. HEMSON Sewer & Water – Capital Plan: Tillsonburg

22. HEMSON Sewer & Water – Calculated Rates: Tillsonburg

23. HEMSON Sewer & Water – Capital Plan: Ingersoll

24. HEMSON Sewer & Water – Calculated Rates: Ingersoll

25. HEMSON Sewer & Water – Capital Plan: Plattsville

26. HEMSON Sewer & Water – Calculated Rates: Plattsville

27. HEMSON Sewer & Water – Capital Plan: Drumbo

28. HEMSON Sewer & Water – Calculated Rates: Drumbo

29. HEMSON Sewer & Water – Capital Plan: Tavistock

30. HEMSON Sewer & Water – Calculated Rates: Tavistock

31. HEMSON Sewer & Water – Capital Plan: Norwich Village

32. HEMSON Sewer & Water – Calculated Rates: Norwich Village

33. HEMSON Sewer & Water – Capital Plan: Thamesford

34. HEMSON Sewer & Water – Calculated Rates: Thamesford

35. HEMSON Sewer & Water – Calculated & Current Rates

36. HEMSON Sewer & Water – Calculated & Current Rates

37. HEMSON Comparison to Current Rates

38. HEMSON Comparison to Existing Rates By Municipality – Residential ($/sdu)

39. HEMSON Comparison to Existing Rates By Municipality – Residential (cont’d)

40. HEMSON Comparison to Existing Rates By Municipality – Non-Residential ($/sq.ft.)

41. HEMSON Comparison to Existing Rates By Municipality – Non-Residential (cont’d)

42. HEMSON Next Steps Completion of Background Report to Be Received By Council – May 26 Statutory Public Meeting – June 23 Consider Public Input and Complete Any Necessary Adjustments By-law Approval By Council – July