Development Charges May, 2015

Purpose of Development Charges New development generates the need for new infrastructure which should be financed, in part, by the new development; Development Charges are a mechanism for recovering the net costs associated with the new infrastructure required due to residential and non-residential growth; and Development Charges may only be used for the purpose for which they were collected.

Current Schedule of Development Charges Determined through a Development Charge Background Study as required by the Development Charges Act, 1997; Background Study performed by Watson & Associates Economists Ltd. in 2014 Study presented to the public in August 2014 to solicit input and answer questions; and By-Law number 1344 adopted August 25, 2014, with new charges effective September 1, 2014.

Methodology for Calculating Development Charges Identify amount, type and location of growth; Identify servicing needs to accommodate growth; Identify capital costs to provide services to meet needs; Deduct: Grants, subsidies and other contributions; Benefit to existing development; Statutory 10% deduction; and D.C. reserves where applicable; Net costs allocated been residential and non-residential and DC’s calculated for each.

Forecasted Growth Measure 10 Year 2014 to 2023 18 Year 2014 to 2031 Population Increase 1,432 3,650 Residential Unit Increase 780 1,735 Non-Residential Gross Floor Area Increase (square feet) 332,700 667,300

Capital Costs to Meet Needs Service Net Capital Cost Less Benefit to Existing Development Less: Grants, Subsidies & Other Contributions & Other Deductions Total Recovered from Development Charges Administrative Studies $ 386,000 $ 279,750 $ 24,150 $ 82,100 Recreation Facilities & Parkland $ 11,567,591 $ 8,527,345 $ 320,760 $ 2,719,486 Fire Facilities, Vehicles & Equipment $ 2,174,161 $ 1,387,392 $ 336,000 $ 450,769 Roads $ 3,193,000 $ 1,596,175 $ - $ 1,596,825 Roads Facilities & Vehicles $ 316,700 $ 52,800 $ 263,900 Police Facilities & Equipment $ 650,000 $ 33,766 $ 616,234 Total - Municipal-Wide Services $ 18,287,452 $ 11,877,228 $ 680,910 $ 5,729,314 Wastewater - Ward 1 $ 10,542,318 $ 5,562,930 $ 4,979,388 Wastewater - Ward 2 $ 107,423 Wastewater - Ward 3 $ 6,600,000 $ 3,300,000 Wastewater - Ward 4 $ 6,360,014 $ 5,190,620 $ 1,169,394 Total - All Services $ 41,897,207 $ 22,630,778 $ 3,980,910 $ 15,285,519 54.0% 36.5%

Current Development Charges Service Residential - Single & Semi Detached Residential - Apts. - 2 Bedrooms Residential - Apts. - Bachelor & 1 Bedroom Residential - Other Multiples Non-Residential (per square foot) Wind Turbines & Telecommunication Towers Solar Farms (per square foot) Municipal-Wide Services Roads and related $ 1,298 $ 753 $ 576 $ 895 $ 0.78 Fire service $ 548 $ 318 $ 243 $ 379 $ 0.33 Police services $ 464 $ 269 $ 206 $ 320 $ 0.27 Outdoor recreation $ 786 $ 456 $ 348 $ 542 $ 0.07 $ - Indoor recreation $ 3,197 $ 1,854 $ 1,418 $ 2,207 $ 0.25 Library serices $ 172 $ 99 $ 76 $ 119 $ 0.01 Administration $ 98 $ 57 $ 44 $ 68 $ 0.05 Total - Municipal-Wide $ 6,563 $ 3,806 $ 2,911 $ 4,530 $ 1.78 $ 2,408 $ 1.44 Area Specific Serices Wastewater - Ward 1 $ 3,390 $ 1,966 $ 1,503 $ 2,339 $ 2.05 Wastewater - Ward 2 $ 727 $ 421 $ 322 $ 501 Wastewater - Ward 3 $ 1,754 $ 1,017 $ 777 $ 1,210 $ 1.15 Wastewater - Ward 4 $ 2,473 $ 1,434 $ 1,096 $ 1,706 $ 1.42

Total Development Charges By Ward Residential - Single & Semi Detached Residential - Apts. - 2 Bedrooms Residential - Apts. - Bachelor & 1 Bedroom Residential - Other Multiples Non-Residential (per square foot) Wind Turbines & Telecommunication Towers Solar Farms (per square foot) Ward 1 $9,953 $5,772 $4,414 $6,869 $3.83 $2,408 $1.44 Ward 2 $7,290 $4,227 $3,233 $5,031 $1.78 Ward 3 $8,317 $4,823 $3,688 $5,740 $2.92 Ward 4 $9,036 $5,240 $4,007 $6,236 $3.20

Historical Development Charges – Residential (Per Unit)

Historical Development Charges – Non-Residential (Per Square Foot)

Comparison of Residential Development Charges (Per Unit)

Comparison of Non-Residential Development Charges (Per Square Foot)

Development Charge Reserves Service Opening Balance 2014 Interest Earnings 2014 Development Charges 2014 Withdrawals Closing Balance 2014 Administration $149,255 $1,869 $8,379 $159,503 Police $33,766 $428 $5,484 $39,678 Fire $1,792 $24 $12,642 $14,458 Roads $268,175 $3,353 $49,941 $321,469 Recreation: Library $0 $132 $10,374 $10,506 Outdoor Facilities $257,645 $3,221 $47,079 $307,945 Indoor Facilities $153,823 $1,940 $77,658 $233,421 Wastewater Ward 1 ($1,290,154) ($10,912) $100,216 ($361,710) ($1,562,560) Ward 2 $19,322 $235 $576 $20,133 Ward 3 $326,944 $4,052 $3,388 $334,384 Ward 4 ($46,547) ($280) $109,479 ($47,363) $15,289 ($125,979) $4,062 $425,216 ($409,073) ($105,774)

New Single Family Residential – 2011 to 2015 (Number of Homes)

Housing Starts – Windsor/Essex County Development Charges 2014 2014 as a % of Total Households 2013 Tecumseh $ 12,406 25 0.28% 24 Kingsville $ 7,550 45 0.55% 61 Leamington $ - 54 0.51% 15 Essex $ 9,495 63 0.71% 53 Amherstburg $ 12,139 75 0.92% 69 Lakeshore $ 16,278 177 1.32% 155 Lasalle $ 12,604 208 2.00% 145 Windsor $ 26,874 321 0.33% 315 781 0.47% 684

Area-Specific Discount of D.C.’s - Harrow Full D.C. On Full D.C. On D.C. Excluding Wastewater Municipal-Wide $ 6,563 $ 3,282 $ 1,641 $ - Wastewater $ 2,473 $ 1,237 $ 618 Total $ 9,036 $ 4,518 $ 5,755 $ 2,259 $ 4,114 Effective Reduction 0% 50% 36% 75% 54% 100% 73% Average No. SFR per Year 4 Reserve Funding Required $ 18,072 $ 13,126 $ 27,108 $ 19,689 $ 36,144 $ 26,252 Assume Increased SFR per Year 8 $ 54,216 $ 39,378 $ 72,288 $ 52,504