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HomeMy WebLinkAboutFND-007-08 ClfJlmgron REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE ReSo\,-,-~()Y)~ fA -I q'-t-og Monday February 25, 2008 Date: Report #: FND-007-08 File #: PLN 20.7.1 By-law #: Subject: FINANCIAL IMPACT ANALYSIS OF NEW DEVELOPMENT AREAS RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-007-08 be received; 2. THAT the Financial Impact Analysis of New Development prepared by Hemson Consulting Ltd., dated February 2008 be received; 3. THAT applications for draft plans of subdivision exceeding 100 units be required to submit a phasing plan with the proposed application; 4. THAT the Municipality adopt a policy to require a separate subdivision agreement for each phase of registration of a draft approved plan of subdivision so as to ensure that growth can be better linked to the capital budget process, and that this be implemented through a condition of draft approval; and 5. THAT any delegations and interested parties be advised of Council's decision. Submitted by: Reviewed by: ~--=- ~'U. Franklin Wu, Chief Administrative Officer. vi . Crome, M.C.I.P., R.P.P. Director of Planning Sd ~A1P/L A.s. Cannella, ----.. Director of Engineering Services. CPI ASCINTIDJClbjl REPORT NO.: FND-007-08 PAGE 2 1.0 BACKGROUND TO FINANCIAL IMPACT STUDY 1.1 In June of 2007 Council approved Report PSD-078-07 recommending a financial impact study be undertaken prior to considering a number of large scale residential applications in the Bowmanville and Newcastle Viilage urban areas. The proposals being reviewed by the Municipality were considered to not align with the Municipality's infrastructure financing and timing assumptions as contained in the Development Charges Background Study 2005. The background to the Municipality's Development Charges Study projected ail or significant portions of these areas were not anticipated to occur until 2015 or latter. Staff believed it was prudent for these development applications to be evaluated in the context of other projects currently budgeted for or forecasted for in the Development Charges Study. There were a total of five (5) areas where residential development was proposed that staff identified as requiring inclusion in the Financial Impact Analysis: . Northglen Neighbourhood in Bowmanville . Far Sight Development in Massey Neighbourhood In Bowmanviile . Port Darlington Neighbourhood in Bowmanviile . North Viilage Neighbourhood in Newcastle Viilage . Wilmot Creek Retirement Community, Phase 8 Each of the identified groups contributed an equal amount to fund the study. The purpose of the analysis is to provide Staff and Council with the information required to make decisions on how to best manage growth across the entire Municipality. 1.2 Northglen Neighbourhood The Northglen Neighbourhood is located north of Concession Road 3 to the Bowmanviile Urban Area boundary, between Regional Road 57 and Liberty Street. At the time the Financial Impact Study commenced, the Northglen Landowners group had submitted applications for Official Plan Amendment, Neighbourhood Design Plan Approval and two applications for proposed draft plan of subdivision and rezoning for approximately 1725 units on about 107 ha. The analysis considered the 1940 units for the neighbourhood. The Development Charges Background Study identified a portion of these lands, immediately north of Concession Road 3, as being developed prior 2014, the majority of the neighbourhood was identified as being beyond 2014. 1.3 Far Sight Development Within the Bowmanviile urban area, bounded by Highway 2 to the south, Soper Creek to the west, Concession Street East to the north and Lambs Road to the east, the lands are subject of an application submitted by Far Sight Investments Limited, for draft plan of subdivision. The proposal is for a total of 470 units on 46.041 ha. Within the Development Charges Background Study the subject lands were identified as being developed beyond 2014. REPORT NO.: FND-007.08 PAGE 3 1.4 Port Darlington Neighbourhood The Port Darlington Neighbourhood located in the Bowmanville urban area is between Lake Ontario and the Canadian National Railway line and bounded by Bennett Road to the east and Port Darlington Road to the west. The Municipality is currently considering applications by the Kaitlin Group Ltd. for official plan amendment, zoning by-iaw amendment and proposed plan of subdivision. The application was originally filed in 2002 and proposes a total of 699 units over 45.4 ha. More recently the applicant has suggested they may revise this figure upwards substantially. For the purpose of this analysis the 1175 units target contained in the Official Plan was utilized. Within the Development Charges Background Study the subject lands were identified as being developed beyond 2014. 1.5 North Village Neighbourhood This neighbourhood located within the Newcastle Village urban area is north of the Canadian Pacific Railway, west of Arthur Street, South of Concession 3, and east of Regional Road 17. The lands are subject of applications submitted by Brookfield Homes and Smooth Run Developments for official plan amendment, neighbourhood design plan, two proposed draft plans of subdivision and applications for rezoning. The applications propose a total of 1470 units while the proposed neighbourhood design plan currently contemplates approximately 1700. Within the Development Charges Background Study the subject lands were identified as being developed beyond 2014. 1.6 Wilmot Creek Retirement Community The proposal submitted by Ridge Pine Park is for an expansion of the current gated community located approximately south of Highway 401 and east of Bennett Road. The lands are the subject of official plan amendment applications at both the Region and Clarington to allow an expansion to the urban boundary. The application is currently for a totai of 340 residential units, a recreation centre and 2000 square metres of retail commercial floor space. As the lands are not currently within an urban area boundary they were not considered for development within the Development Charges Background Study. 2.0 Studv Process 2.1 Shortly following Council approval to undertake the Financial Impact Analysis a meeting was held with the proponents and consultants of the above referenced applications. The terms of reference for the study were reviewed and questions with respect to the analysis, time frame and expected results were answered. At that time the land owners were requested to contribute to the cost of the study as well as provide data on phasing and infrastructure required to support the developments. 2.2 Hemson Consulting and municipal staff reviewed the number of housing units associated with each of the proposals and the proposed timing of construction as provided by the developers. A model was developed to project the impact of growth on assessment, expenditures, revenues and tax rates in Clarington to 2031 from the proposed developments. This was done based on 2007 budgets and tax rate by-laws. REPORT NO.: FNO..o07.08 PAGE 4 The model allowed for sensitivity testing under the base case and four different alternative growth scenarios. 2.3 In October the draft findings were presented to the land owners group. Following this presentation opportunity was provided for meetings with individual proponents to allow for clarification to issues raised with the draft report, as well as providing opportunity for the proponents to clarify their proposals and address identified potential impact on the Municipality's ability to finance the required infrastructure. Meetings occurred from late October 2007 to late January 2008. During these meetings, the projected number of units and related timing were revised resulting in required revisions to the draft Financial Impact Study and a resulting delay in finalizing the study. 3.0 Summary of Fiscal Problem 3.1 Key findings and recommendations from the Financial Impact Study support discussions with Council over the past year or so pertaining to the status of the development charges reserve funds, through budget meetings and other updates. 3.2 The key findings are found in Section VI of the attached Financial Impact Study, February, 2008 on page 22 and will not be repeated here in its entirety, except to say that growth does not fully pay for growth. This is particularly so with respect to capital as well as in any time period where operating costs are triggered from opening major facilities. 3.3 The base case plus four scenarios were undertaken to project for comparative purposes, tax levy impacts, impacts on a typical household, impact on development charges reserve funds, and impacts on debt levels. 3.4 In all cases, including the base case, increased fiscal pressures on tax rates and resulting typical households tax burden result. The Municipality will experience immediate pressure on its tax rate. The pressure under the development scenarios is greater, in most years than the base case. 3.5 With respect to development charges reserve funds, the roads and related were used as the example. The base case shows that, under current development charges rates, a negative balance approaching $37.7 million will result by 2031. Even under the most positive growth scenario in the study, a negative balance of $23.8 million results by 2031. The other scenarios show a resulting deficit as high as $89.1 million by 2031. 3.6 The debt level impact was also reviewed with the result that, under all of the growth scenarios, the Municipality will face increasing pressure to rely on debt financing. 4.0 Recommendations from Study 4.1 As referenced above, the base case reflects an overall negative perspective, irrespective of action taken on the alternative growth scenarios. The first recommendation in the study is to review development charges rates and policies immediately. In order to address this situation, on December 10, 2007, Council approved report FND-024-07 to REPORT NO.: FND-007-08 PAGE 5 endorse an interim update to the 2005 Development Charges Background Study and By-Law. 4.2 The second recommendation is to review land supply and housing demand. A revision of the growth forecasts will not take place under this interim update. However, the 2005 Development Charges By-Law will expire in mid-2010 and therefore a full growth forecasting exercise will be required during 2009 as part of a new Development Charges Background Study. 4.3 The third recommendation is to consider mitigating the risk of expanding municipal services by entering into cost sharing agreements with developers. In Clarington, where future rates of growth are less certain, cost sharing arrangements carry risk associated with them. This is particularly true when the Municipality is reliant on development charges cash flows to pay for existing growth-related debt and hampers Council's flexibility in future capital budgets. Local services is one area being explored through the Development Charges Update whereby the costs are excluded from development charges recovery for some roads and parkiand development and included as conditions of subdivision approval. 4.4 The complete recommendations from the Financial Impact Study are found on page 24 of the attached document. The Financiai Impact Analysis demonstrates that, under the Municipality's current policies and practices, advancing development will have an overall negative fiscal impact on the Municipality. As a result, staff have undertaken to determine whether alternative approaches can be considered in order to provide options to allow some development proceed in an effective manner. This will be discussed in the following sections. 5.0 Enqineerinq Standards and Related Impacts 5.1 The Municipality is committed to servicing approved developing areas through the Municipality's Capital Budget. The Municipality however, just like a business, must direct finite financial resources towards providing an adequate supply of housing units where and when it has been demonstrated that the market can support demand. This becomes a delicate balance between providing services and living up to the commitments that we have made while operating within our available budget and reserve funds. It is for this reason that any consideration of future municipal expenditures is dependent upon having seen a recovery of the infrastructure investments we have already made and must be done in a timely and affordable manner. 5.2 Infrastructure improvements that are necessary to maintain existing infrastructure are considered non-growth related, while improvements needed to provide municipal services to new residential developments contained within our Development Charge Study are considered growth reiated. Growth related and non-growth related projects are accommodated through the Municipality's annual Capital Budget and Forecast and the funding of these projects comes in part from such sources such as the tax levy as well as our development charge reserve funds where development charges levies are deposited. REPORT NO.: FND-007-08 PAGE 6 5.3 The background work to the Municipality's Development Charges Study in 2005 identified lands anticipated to be developed and infrastructure required by 2014 or earlier (Ten Year Growth Areas), as well those lands and associated infrastructure that would be developed in 2015 and beyond (Long Term Growth Areas). The development of Ten Year Growth Areas, such as Brookhill Neighbourhood, is always the Municipality's primary objective. The Ten Year Growth Areas in the Development Charges Background Study is a snapshot in time and, in part for this reason, the Development Charges Study is updated every 5 years. This allows the Municipality to adjust to growth trends and progress in providing infrastructure. 5.4 Municipal staff internally prepare a 10 Year Capital Works Program with every budget. The 10 Year Capital Works Program is quite specific for the first five years but the timing becomes more fluid for the latter five years. The only growth-related projects in the 10 Year Capital Works Program are those subdivision applications which have been draft approved. The draft approval of a plan of subdivision generally Indicates that the Municipality is committed to service that development within a reasonable timeline. 5.5 At this time, the Capital Works Program necessary for existing registered plans of subdivision and draft approved plans of subdivision are fully committed for the next five year time frame. The approval of the expenditure of funds for these growth related projects are subject, however, to the approval of Council through the annual budget process. This is indicative of the financial constraints the Municipality has at the present time. 5.6 The draft approval of any new plans of subdivision which the servicing is sequential to existing or draft approved developments, and which are expected to develop within the foreseeable future, wouid have to be scheduled in the next 6 to 10 year forecast (2013 - 2017) or later. Such capital works for these plans of subdivision will still require the approval of Council and are of course SUbject to Council priorities at that time. To date, none of these projects are located in the Ten Year Growth Areas as determined by the 2005 Development Charges Background Study. 5.7 It should be understood that when the Municipality states that it is committed to service a development, this means that we are committed to provide, in a timely fashion, the level of service that our residents have every right to expect. In a recent quality of life survey the perception of value for taxes was closely linked to the provision of services such as parks, trails, recreational facilities and roads. If we do not provide services within the timeframe that most would consider appropriate our quality of life ratings In future years may not be quite so favourable and complaints would be expected to increase. 6.0 Modifications to Subdivision Approval and Reqistration Process 6.1 Financial Impact Review Current Practice As part of the review of a subdivision application determination is made regarding the infrastructure required to support the development at an adequate level of service. The Clarington Official Plan contains policies dealing with growth management. These policies state that Council may deem applications premature if "the capital works and REPORT NO.: FND-007.08 PAGE 7 services required to service the lands and the future residents are not within the Municipality's current capital budget or 10 year capital works forecast as updated from time to time; or Council is of the opinion that the Municipality's administrative and financial resources are not sufficient to provide an adequate level of services for those residents who would be accommodated in the proposed plan of subdivision as well as to provide and maintain an adequate level of services for existing residents and residents who will live in developments which have been approved by the Municipality." Comments with respect to timing of municipal infrastructure are typically provided by Engineering staff based on their review of the capital works forecast. Engineering liaises on a regular basis with the Finance Department when required. Proposed Change It is not recommended that current process be changed. Where there are concerns about negative financial impacts, the Official Plan provides for a Financial Impact Analysis to be conducted. 6.2 Draft Approval of Plans of Subdivisions Current Practice As the various agency issues are resolved conditions of draft approval are prepared and approved by Council, prior to the Director of Planning Services issuing Draft Approval with conditions. Conditions of Draft Approval usually apply to all the lands subject of the subdivision application, and identify the Owner's responsibility financially and otherwise prior to receiving Final Approval and registering the whole, or a phase of the development. The Owner is required to enter into an agreement with the Municipality of Clarington to implement the conditions. More recently a condition of approval states that draft approval lapses if the Owner does not receive Final Approval within three (3) years. For larger plans of subdivision once Final Approval is issued it may take a number of years to register the various phases. Proposed Change Given the dispersed nature of development in Clarington across three main urban areas and concerns with financial impacts of growth, it is recommended that in certain instances, where the projected development timeframe is over a long period of time, the Municipality may determine only partial draft approval of an application at the conclusion of the circulation and review process. The area of a plan of subdivision which is draft approved may be limited based on the Municipality's ability to finance municipal infrastructure required for the development within a reasonable time frame. This will mean that phasing plans for individual applications could be used to provide boundaries or limits for draft approval. The Municipality is required to only have a 3-year supply of draft approved or registered lots. Approving plans of subdivision too far in advance of their anticipated development time reduces the Municipality's flexibility in adjusting to new trends and requirements (eg. after 2015, up to 40% of all new development will have to be within the "built boundary"). REPORT NO.: FND.007-08 PAGE 8 6.3 Subdivision Agreements Current Practice In Clarington, since the late 80's, the Municipality developed a comprehensive master subdivision agreement intended to encompass all the lands within the Draft Approved Plan of Subdivision. This practice was adopted at a time when there were less concern about the financiai impacts of development and more concern for ease of administration of the agreement process. However, development of larger subdivisions usually occurs in phases through the registration of M-Plans. The registration of M-Plans is usually at the discretion of the Owner provided he complies with the provisions of the subdivision agreement and conditions of draft approval. Moreover, for large development projects like Aspen Springs or the Port of Newcastle, there were numerous amendments to draft approval to address market changes and other concerns. Typically phases are registered in accordance with the owner/builder's schedule and this triggers works for the Municipality. More recently where the Municipality was required to finance infrastructure needed to support planned development, the conditions of draft approval often included a condition that said: "This development may proceed at such time the Council of Municipality of Clarington has approved the expenditure of funds for [the details of the project describedj" While these provisions made explicit the link between proceeding to registration of a draft plan of subdivision and the capital budget program, it did not fully address the complexity of very large plans of draft plans of subdivision now in front of the Municipality. Additionally, given the financial impacts of growth on the Municipality, this process could be strengthened. Proposed Change It is proposed that a separate subdivision agreement be prepared for each M-Plan reflecting a phase of development for the larger draft plans of subdivision. This will allow the Municipality to better link the registration of phases of draft plans with the specific works required and the capital budget process,. This will assist the Municipality in having greater control over its capital budget program and the timing of final plan approval and registration. This practice is currently being used by other municipalities within Durham, including the Region. As a transitional measure, it is recommended that any application where the proponent has notified the Municipality of their intent to enter into an agreement and where the requisite fee has been paid, the Municipality would continue to prepare one agreement with the appropriate phasing plan, if any. REPORT NO.: FND-007-08 PAGE 9 6.4 Phasing Plans. Current Practice Municipal staff will often request a phasing plan to be prepared where there is some concern about the co-ordination of capital works. However in many cases, no phasing plans have been required since a draft plan of subdivision was sequential to existing deveiopment or adjacent to another draft approved plan of subdivision. This has left the landowner to determine the phasing of each draft plan of subdivision. Consequently, in certain situations the capital works program has not been able to keep up with the phasing of development. Proposed Change It is proposed that applications for proposed Draft Plan of Subdivision encompassing larger tracts of land (greater than 100 units) be required to submit a phasing plan for approval by the Municipality. The phasing plan shall identify, among other things, how the development may proceed in consideration of infrastructure requirements. This Phasing Plan would be prepared at the start of the application review process rather than part way through as issues are identified. 7.0 CONCLUSIONS 7.1 Staff will prepare separate reports with recommendations dealing with the applications that triggered this study. The recommendations of the Financial Impact Analysis provide a tool in reviewing the applications reiative to the growth management objectives. In preparing specific recommendations for each of the applications the Municipality will continue to rely on the deveiopment charges background studies and Official Plan policies to manage future growth. 7.2 This means that applications that will be reviewed in a favourable light are those where: . development is sequential to existing growth and services and able to take advantage of existing infrastructure; . capital works and services required to service the lands within the Municipality's Ten Year Growth Area will be given priority. In some cases the area to be developed prior to 2014 may need to be adjusted based on changing commitments to services beyond the Municipality's controi (i.e. regional servicing); . by implementing a more controlled draft approval and registration process, the development is not expected to create a negative fiscal impact on the Municipality; and . Council is of the opinion that the Municipality's administrative and financial resources are sufficient to provide an adequate level of services for those residents who would be accommodated in the proposed plan of subdivision as well as to provide and maintain an adequate level of services for existing residents and residents who will live in developments which have been approved by the Municipality. The approval of the expenditure of funds for growth related projects is subject, however, to the approval of Council through the annual budget process and must also consider non-residential development priorities. REPORT NO.: FND-007-08 PAGE 10 7.2 In addressing the five development areas that triggered this study the Wilmot Creek Phase 8 is not identified to have a negative financial impact. The Northglen proposal is identified as having land and infrastructure at least in part being developed prior to 2014. This is also likely for the North Newcastle proposal as a result of a change to regional servicing constraints since the 2005 Development Charges Background Study was undertaken. Some of the remaining applications may be considered premature. All five proposals will require further discussion with the individual proponents and in some cases, may be the subject of negotiation to mitigate financial impacts and/or timing constraints prior to future reports dealing with their applications. Attachments: Attachment 1 – Financial Impact Analysis of New Development – February 2008 List of interested parties to be advised of Council’s decision: Nick Mensink, Sernas Associates Bob Annaert, D.G. Biddle Associates Ltd. Kelvin Whalen, Kaitlin Group Ltd. Kevin Tunney, Tunney Planning Inc. Roslyn Houser, Goodmans Bob & Rick Schickendanz, Far Sight Investments Ltd. Peter Schut, Brookfield Homes Bruce Fischer, Metrus Properties Inc. Peter Nundy, Region of Durham Works Department Kirk Kemp Rick James Bryce Jordan, Sernas Associates Darren Marks, Sernas Associates Randy Grimes, IBI Group Sharook Mansouri, Liza Development Corp. Hannu Halminen, Halminen Homes Vincent Walsh, Liberty Mutual Ron Worboy Robert Carruthers Colin McLachlan Wayne Hancock Ron Hawkshaw Cora Tonno Tom Abani CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-4169 Attachment #1 FINANCIAL IMPACT ANALYSIS OF NEW DEVELOPMENT Municipality of Clarington HEMSON Consulting Ltd. February 2008 L)16 TABLE OF CONTENTS palJe INTRODUCTION ............................................... 1 A. The Overall Fiscal Impact of Six Development Proposals Is Analysed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2 B. A Fiscal Impact Analysis Has Been Undertaken Using Five Growth Scenarios ........................................ 3 II RESIDENTIAL GROWTH IN CLARINGTON ........................... 5 A. Recent Building Activity in Clarington Shows Steady and Sustained Growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 B. DC Study Growth Forecast Remains Sound and Defensible ............ 6 C. Development Proposals Would Dramatically Increase Growth In the Short Term ............................................ 8 III FIVE DEVELOPMENT SCENARIOS HAVE BEEN TESTED................. 11 A. Base Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11 B. Development Scenarios ...................................... 11 IV FISCAL IMPACT ANALYSIS APPROACH AND METHODOLOGY. . . . . . . . '. 13 A. Modified Average Cost Approach Is Appropriate for the Fiscal Impact of Development ................................. 13 B. Cost/Revenue Allocation Methodology. . . . . . . . . . . . . . . . . . . . . . . . . .. 14 C. Growth-Related Capital Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16 D. Revenues Will Largely Be Derived from Property Taxation. . . . . . . . . . .. 17 E. Some Variables Have Been Held Constant ................. . . . . . .. 18 V FISCAL IMPACT ANALYSIS RESULTS............................... 19 A. Tax Levy Impact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19 B. Typical Household Impact .................................... 20 C. Development Charge Reserve Funds Impact. . . . . . . . . . . . . . . . . . . . . " 20 D. Debt Level Impact .......................................... 21 VI KEY FINDINGS AND RECOMMENDATIONS..... ...... . ...... ....... 22 A. Key Findings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 22 B. Recommendations.......................................... 23 APPENDICES REMSON 1517 INTRODUCTION Clarington is a municipality with a population of 78,000 situated at the eastern edge of the Greater Toronto Area (GTA). It incorporates three distinct urban communities-Bowmanville, Courrice, and Newcastle-separated by large rural areas containing several smaller communities. In 2005 the Municipality passed its current development charges by-law. The development charges imposed by the by-law were based on a Development Charges Background Study (DC Study) which established growth forecasts for the Municipality to 2031 as well as a capital program to service the forecast growth. Since the by-law was passed the Municipality has received a number of proposals from developers seeking to advance development at a rate faster than what was anticipated under the DC Study. Several large scale proposals that relate to residential neighbourhoods in and around Bowmanville and Newcastle cannot currently be accommodated under the capital forecast prepared for the DC Study. This is because the developments they propose would either exceed the Municipality's population and housing targets for those neighbourhoods or accelerate growth beyond the Municipality's ability to service the subject lands. In many cases amendments to the Official Plan are required to allow these proposals to proceed. Large scale development proposals can require significant public investment. Therefore, the Municipality also needs to understand what the long term revenue and expenditure impact of the proposed developments would be before they are approved. Section 5.3.8 of the Official Plan provides for a fiscal impact analysis to be undertaken for large scale developments. Accordingly, staff of the Municipality has recommended, and Council has supported, that the proposed developments undergo additional review and consideration, including: That the applicants be required to undertake a Financial Impact Analysis to address the impacts of these proposals on the MuniciPality. HEMSON 1518 2 In 2007 Hemson Consulting Ltd. was retained by the Municipality to undertake the fiscal impact analysis. This report presents the analysis results. A. THE OVERALL FISCAL IMPACT OF SIX DEVELOPMENT PROPOSALS IS ANAL YSED Fiscal impact analysis is a well established tool for quantifying the public cost of private development and is widely used in North America. The aim of the analysis for Clarington is to provide the Municipality with the information it needs to make decisions on how to best manage growth across its entire jurisdiction. To that end the analysis quantifies the overall impact of selected large scale development proposals rather than the individual impact of anyone proposal. Also, the analysis has been conducted in the context of overall growth in the Municipality. The development proposals that are the focus of the fiscal impact analysis are shown in Table 1. The number of housing units associated with the proposals and the timing of construction have been provided by the developers and have been reviewed by the Municipality. Exhibit 1 shows the location of the proposed developments. TABLE 1 Name Developer Community # of Units Timing B rookh i /I West Diamond Properties Bowmanville 1,613 2009 - 2017 Ltd. and Players Business Park Inc. Northglen Northglen Neighbourhood Bowmanville 1,940 2009 - 2031 landowners Group Darlington Mills Far Sight Investment ltd. Bowmanville 470 2009 - 2016 (Shickadanz) Port Darlington The Kaitlin Group Bowmanville 1,175 2010-2018 Wilmot Creek, Ridge Pine Park Inc. Wilmot Creek 340 2009 - 2018 Phase 8 Retirement Community North Newcastle Smooth Run Developments Newcastle 1,727 2009 - 201 6 Village (Metrus) and Brookfield Homes (Ontario) Ltd. REMSON 1519 ~ ~l0 ~S- I "'J . r.~ ,./J' " - ~ I . I . I . I . ll:lON 133IHS I I I I I \ '0\..0 sC -- ,. ~ - :0 .c: X L1J ""'t. ...o,J....-./ ~ T 10 ~ ~ t& -I zj =11'-1 ~ ~ .J. n~ O1rP, =3:;..-l h:: '\ ~ '-irl-ill,I~ r ,,,,,n::t d t::l ->-l L.-J ~ ~LV I -< "- ;1 \~ I -~ I "I ~ ...-L.L.L I ------ :::::1 ~y, ~~ ~ 'g _ \ ~ r:1. f-J U, ~ \ ~ g fW(C lh ( \ ~ ~? ~~ ~U 07 '-r r' ,( \~ U-LI, Lr+ LV~~\\~~ -~.J uriJb ). 676\\ .--.. ..j~ . --'\---- ----. z w -' l'J I '""' 0: o Z Ii ~'\. l/ .., ~ ,--'~~ ': t- W -. I ~ ,t';._.,..J """""'" ,y '\ ~ ~ l ~oIff~} ~ rr p ~ L.:::+J j I I >J:::Y/ I - w -' I'""'W ,"",Wl'J 0:('3:5 0:;:-, Zw> z '- " o ~ "\ '" '. ~, % - -I~'- . z o ~ u . " ~QVOl:l3NnNMOl 3)l<lVl:)-!l.Ol~N41"''''Q I v / ~ . < " j1 II " 0 . ! z 0 ~ u z 0 u " " --------- z o ;;; ~ o z o o VI"" O'o'Ol:l se~Vl oG RO -' :i I '" o o 0: '" ,..-- . r ~L-" -l- ~ h Z :::J -: ",:;; ~n t!j~ O:u U,"", f-Z OW :;;:;; -'w 3:~ - Iii ~ I 0: , o . , I > o > c-- Z o '""' l'J z :; 0: <( o '""' 0: o "- \~ ~ ~ ...~ - , < ,. .\\, ( --- ._._.~ , 1 ;.; 2 >- "," ",E ~rn <tl - '" <: a. Ql E E- o.- o.~ -u Ql <: > '" Ql <: C._ u. 3 Under the 2005 DC Study the vast majority of residential growth in the neighbourhoods to which the proposed developments relate was anticipated to occur between 2015 and 2031. The Wilmot Creek Phase 8 proposal is unique in that it is located beyond the existing urban boundary and was not contemplated at all within the 2031 planning period. Under the development proposals the majority of residential growth in the subject neighbourhoods occurs between the period 2009 and 2014. B. A FISCAL IMPACT ANALYSIS HAS BEEN UNDERTAKEN USING FIVE GROWTH SCENARIOS The fiscal impact analysis makes use of a long term financial planning model developed by Hemson and refined for this assignment. The model uses publicly available base data (e.g. 2007 budgets, tax rate by-laws) and projects the impact of growth on assessment, expenditures, revenues and tax rates in Clarington to 2031. In addition, the model allows for sensitivity testing under different growth scenarios. Five growth scenarios have been tested as part of the analysis. The report is divided into five sections: Section II discusses growth trends in Clarington. Recent and historic growth in the Municipality, as well as the growth forecasts used in the 2005 DC Study, are described. In addition, the impact of the six development proposals on growth is assessed. Section III provides details on the five growth scenarios used in the analysis. In Section IV the structure of the fiscal impact models and the assumptions that underpin the model inputs are described. The approach and methodology used in the analysis is also discussed. The results of the analysis are presented in Section V. Section VI summarizes the key findings of the analysis and includes a summary of recommendations for maintaining the fiscal health of the Municipality. REMSON 1521 4 It should be noted that fiscal impact analysis is a useful indicator only of the relative impact of growth on the Municipality. The analysis is not prescriptive of the long term fiscal health of Clarington under a given growth scenario and should not therefore be compared to a municipal budget exercise. HEMSON 1522 5 II RESIDENTIAL GROWTH IN CLARINGTON This section contains an analysis of recent and historic residential growth in Clarington. The population and housing growth forecasts adopted under the Municipality's development charges by-law are also discussed. Finally, the housing unit estimates proposed for the six proposed developments are assessed. A. RECENT BUILDING ACTIVITY IN CLARINGTON SHOWS STEADY AND SUSTAINED GROWTH In general, residential building activity in Clarington has remained steady over the last ten years. Almost 90 per cent of all new units constructed in the period were located in the three urban communities of Bowmanville, Courrice, and Newcastle, with Bowmanville accounting for about 50 per cent of all unit growth. Residential building permits issued across the Municipality since 1998 are provided in Table 2. Table 2 shows that residential unit construction in the Municipality has fluctuated considerably since 2003, from a peak of 1 ,015 units in 2004 to a projected low of about 660 units in 2007. The variation in units from year to year is substantial and no one year provides a reliable indicator for long term trends. Bowmanville has increased its share of annual growth in recent years to about 60 per cent. In 2006 and 2007 its share of overall growth reached 70 per cent. The community typically draws between 400 and 600 permits per year. Newcastle has maintained an approximately 15 per cent share of residential growth in Clarington over the last decade. In recent years the community has drawn about 130 residential permits annually; 2004 and 2005 were peak years when 191 and 202 permits were drawn respectively. In the past two years growth has slowed considerably in Newcastle, to 84 units in 2006 and 63 projected units for 2007. This has occurred in the context of a slowdown in residential growth across the entire Municipality in the past year. HEMSON 1523 I- ... Z 0 W 0 :;; '" <1. oo 0 0> -' 0> Zw ~ o>z I-Wo (.'l01- Z~(.'l i:Ew~ :,\zo:: '" 0"-:'\ W ,,-00 -' o~z III < >-Ul- I- 1->-:1: --'~ -'< <ZO ~<(a:: ~I-c.!) ZO-, ::><< :;;<1.- :;;1- -Z -'W <0 0- UlUl _W "-0:: J!l 'E ~ .. <1. :! c ~ "C "w ~ 0:: '0 ~ .c E ::l Z ~ ... 0 ... m ... ... m ~;!: m '" ... N <= '" .., " "'0 ... 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'" ~f!~ !:: ~ m ~<(~ .., o o '" '" o o '" c o '" o o o '" ,g! E ~ <1. ~ C ~ "C 'w ~ 0:: '0 l!! m -" Ul N 0> 0> 0> ~ oo .. '" ~ ~ '2 ::l E E 8 ~g;~~$ "'N~ ~$~~~ '" ~ ~ ;f!.;:J?':=R.::::e.::::e. .....lS)~~~ "'N ... o o '" *::::e.?fi!.::::e.::::e. ~~~N~ .. o o '" #-"2F-?ft'::R.ae. t::~~NC'? U) o o '" ~~~~~ "''''N ... o o '" ~~~~~ ~ LO ..... ..... 0 ~ ::::e."#. *,::::e.?f. ~ ID......LOMIl) 0 lO C\I ..- 0 ~ $~$~~ ~ v.......... 0 ~ ;f!. 'eft::::e. '::R.."# ~ N ~ _ 0 U1 N ,0 ~ * *,;j? 'if??ft ~ COV(,OC"lCJ) 0 N ("}...... ..... 0 ~ (#.::::e.'#.::::e.::::e. ~ C>IDN(:,O 0 N V...-- ....... 0 ~ ?ft::::e. *,::::e. *' * en 0 u-:. LJ) 0 v v ~ ~ ~ CIl "S; ~ ~ C!J,!ti~ - E:e~o,- ~ 3: :::::I 3: E <Ll I- ~8~~5 ~ o o ~ ~ o o ~ ". ~ o ~ ~ o o ~ ~ o o ~ ~ o o ~ z o en ~ ~ :I: 1524 6 B. DC STUDY GROWTH FORECAST REMAINS SOUND AND DEFENSIBLE The Development Charges Act requires that when calculating development charges a forecast of the quantum, location, and timing of growth be made. Accordingly, the 2005 DC Study included two residential growth forecasts: · a 10 year forecast (2005 to 2014) of population and housing for the entire Municipality. This forecast was used ro calculate Municipal-wide development charge rates for the general services which the Municipality provides. · a long term forecast to 2031 for the purposes of calculating Municipal-wide development charge rates for the roads and related service. The long term forecast was to build out of all urban residential designated land in Clarington. Maps were included in the DC Study which identify the anticipated location and timing of development lands together with the major capital works that would be required to service the lands as they became developed. The maps for Bowmanville and Newcastle are reproduced in Appendix A. The 'pink' areas on the maps show lands thar are anticipared to be developed in the 10 year planning horizon ro 2014. The 'blue' areas relate to lands that are anticipated to be developed between 2015 and 2031. Areas which are coloured yellow are already developed but may accommodate some growth through infilling. Areas which are not to be developed are coloured green and areas which fell outside the urban boundary have been left white. 1. Municipal-wide Forecasts Table 3 summarizes the DC Study residential growth forecasts for the entire Municipality. TABLE 3 Mid-2004 10 Year Forecast Long Term Forecast Build Out Population (2005 - 2014) (2005 - 2031) Population Population 74,822 21,820 68,545 143,367 Papin in New Units 29,238 89,582 Households 25,558 9,341 28,620 54,178 REMSON 1525 7 2. Community Forecasts In Table 4 the growth forecasts for each of Clarington's urban communities that form the basis of the DC Study forecasts are displayed. The table shows that under the DC Study Bowmanville was forecast to add between 400 and 600 residential units per year to 2009 and about 400 units per year thereafter to 2019. Between 2020 and 2031 the forecast for Bowmanville was for about 600 units per year. The DC Study forecast had Newcastle adding about 50 units per year to 2009 before rising to about 200 units per year between 2009 and 2014 and to about 400 units per year between 2015 and 2019. Growth was forecasr to slow in Newcastle to about ISO units per year until build out in 2031. A comparison of the recent residential consttuction activity in Clarington shown in Table 3 with the DC Study forecasts shown in Table 4 demonstrates that overall the DC Study forecasts are sound. However, the following points are noted: . the DC Study may have overestimated overall growth in the Municipality. Clarington has experienced between 800 and 850 units per year since 2005. This is short of the 930 units per year anticipated under the 10 year forecast. · in the context of lower overall growth, Bowmanville has achieved relatively high growth and Courtice relatively low growth. Growth anticipated in Courtice under the DC Study may have been displaced to Bowmanville in recent years. . the DC Study establishes forecasts based on average annual projections of population and residential unit growth. It is anticipated that the actual annual level and location of growth will fluctuate during the 10 year and long term planning periods. REMSON 1526 ~ W ...I m ~ >- I- Z ::;) ::E ::E o o >- m J: I- 1-:5: ZO WllC ::Eel 0..1- 0- ..JZ W::;) Z>..J OW<( I-Oj:: el:5:Z zwW -ZO llCu.iii ~Ow OUlllC u.-u. O~O >-..JZ 1-<(0 -Z- ...1<(1- <( ::;) D..I-m -0- O<(llC ZD..I- ::;):;;!2 :;;-0 ...I. <(>- 00 Ul::;) ;;:1- ...Ul 00 Oz "'::;) o llC el ~ o <( m o o II) o o '" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ... m oo 0 '" CD m ~ ..- ... ~ CO '" '" ... ... oo m m m m 0 0, 0 ., ..., CO '" ~ ~ ~ en CO '" 00 iii ~ '" - 0 I- 0 0 , . '" ., C- , , , , , , , , . , ... .... m ~ ~ c. ~ Ql ..<: - 0 '" CO ..- CD m oo ~ '" CD oo ., m CO ... r- ... oo oo oo oo m m m m ... ~ N ~ oo CO ~ '" III ~ N - Ql III E .. - J: '" ::;) iii I: 0 m ~ r- OO 0 N oo N ... '" ... ~ CD ~ :,; ..- CO CO CO CD oo oo m m 0 ., CD oo <0 '5 Ql ~ ~ ~ ~ N "'. ~ CO <0 't:l ;:; ~ N ~ ~. <( III .. " 3: Ql Z ~ oo m '" 0 oo oo CO CO CO II) m 0 ~ ... r- m 0 ~ N '" ..- CO CD 0'> r- ..- ~ ~ ~ ~ N N '" '" '" '" '" '" m '" 0 Ql N N ",' " 'E ::l 0 0 '" CD ~ '" N N '" ~ N '" '" N 0 <0 ~ r- OO ~ CO r- CD r- OO m 0 ., m CO ... ..- ..- CO CO '" '" '" '" ..- II) ~ "'- ., 'S; <E N CD .; I: ~ .. E 3: 0 m ~ ~ - ., 0 0 '" '" ~ CO CD r- OO m 0 ~ N '" ..- 0 m ~ 0 .. 0 0 0 0 0 ~ ~ ~ ~ ~ - ~ '" - ~ 0 0 0 0 0 0 0 0 0 0 II) 0 0 II) N N N N N N N N N N 0 N N 0 0 .8 .8 0 '" '" iii CO 0 iii - ~ N - 0 0 0 0 l- N N I- z o r:r; ~ ~ =c c;, ,S 1:l <:: '" e .8 '" '" 1:l ~ '" '" '(3 !! Cl. :g CO "0 <:: & E .!!1 .l!l ~ .s c <: 1527 8 C. DEVELOPMENT PROPOSALS WOULD DRAMATlCALL Y INCREASE GROWTH IN THE SHORT TERM The phasing plans for rhe six proposed developments are provided in Table 5. The plans have been submitted by the subjecr developers and have been reviewed by Municipal staff. Table 6 compares the housing unit estimates in the DC Study growth forecasts to those in the development proposals for each of the neighbourhoods to which the proposals relate. The table shows that the development proposals increase the total number of units forecast in the neighbourhoods under the DC Study from 6,044 units to 7,265 units. More importantly, under the DC Study almost 92 per cent (5,532) of the 6,044 units were to be constructed after 2014. Under the development proposals more than 60 percent (4,363) of the units are to be constructed before 2015 and about 10 percent (699) are to be constructed before 2010. Given that the DC Study forecast only projected 9,341 units for the entire Municipality between 2005 and 2014 the development proposals would dramatically accelerate growth in Clarington in the short term. The table does show that, under the DC Study, parts of the proposed developments (including a significant part of Brookhill) fall into the 'pink' area. However, for the most part the six subject development proposals relate to lands in the 'blue' area. They are therefore not anticipated to develop until after 2014. Under its current growth- related capital program the Municipality is already planning to service the entire pink area to 2014. Accelerating growth from the blue area to the pink area would thus require the Municipality to make significant capital investments over and above what has already been committed. Should the proposed developments be allowed to proceed, part of the cost of the additional investment could be recovered through development charges. However, as shown earlier, the Municipality's current development charge rates have been set on the basis that the subject developments occur only after 2014. The rates would therefore almost certainly have to be recalculated based on a more aggressive growth forecast and growth-related capital program. From a fiscal perspective, adopting a significantly larger growth-related capital program can carry enormous risk for the Municipality. The Municipality relies on development REMSON 1;:'28 - w " . ~ ~ .. '2 gi ~~g "w- oe_ il:3:~ "ww ~2 , OW" ....Offi O!:2:;; ~~~ ~~g !l:Cll.l l:ll-C 20e "w .w. '0 -. 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C 2 r . 0 w 0 ~ " " . c 0 " " " ~ " ~ ~ 0 0 ;: . 2 2 1529 I TABLE 6 MUNICIPALITY OF CLARINGTON FISCAL IMPACT ANALYSIS OF NEW DEVELOPMENT COMPARISON OF PROPOSED DEVELOPMENTS WITH DC STUDY GROWTH FORECAST Residential Unit Growth to 2031 Total 2005 - 2009 2010 - 2014 2015-2019 2020 - 2031 2005 - 2031 BROOKHILL Proposed by Developers 250 1,050 313 - 1,613 2005 DC Forecast 7 425 256 890 1,579 PORT DARLINGTON Proposed by Developers - 600 575 - 1,175 2005 DC Forecast 7 11 435 316 768 DARLINGTON MILLS Proposed by Developers 60 300 110 - 470 2005 DC Forecast - - 470 - 470 NORTHGLEN Proposed by Developers 100 500 425 915 1,940 2005 DC Forecasl 7 52 816 558 1,433 WILMOT CREEK Proposed by Developers 34 170 136 - 340 2005 DC Forecast - - - - - NORTH NEWCASTLE VILLAGE Proposed by Developers 255 1,044 428 - 1,727 2005 DC Forecast 2 3 873 917 1,795 TOTAL Proposed by Developers 699 3,664 1,987 915 7,265 2005 DC Forecast 22 491 2,850 2,682 6,044 HEMS ON 1530 Note: Darlington MHls DC und projections included in forecast for Vincent Massey neighbourl1ood. 9 charge revenue to pay for a large share of the capital program. Should development occur at a slower rate than anticipated by the growth forecast this revenue would be insufficient to pay for the capital works in the program. In such cases the Municipality would be left with capital infrastructure that is oversized as well as significant additional operating costs. Determining whether Clarington can accommodate a higher rate of growth than anticipated under the DC Study, and a correspondingly larger growth-related capital program, is a challenge. Any forecast of future growth must, at a minimum, consider the following: · That control over land supply allows the Municipality to plan effectively for growth. The DC Study growth forecasts were based on the potential housing unit supply on lands designated for development in 2005. Thus, the Municipality currently has a supply of land either draft approved or registered for subdivision to achieve the 10 year growth forecast under the DC Study. Allowing the subject development proposals to proceed would dramatically increase the supply of designated land in Bowmanville and Newcastle that receive full municipal services. Some developers of the proposed developments have argued that land supply constraints in the two communities are responsible for the slower than anticipated growth in the Municipality since 2005. Removing these constraints would, in their view, result in high growth in those areas where the constraints exist. · Tlwt housing demand in Clarington would not necessarily result in higher overall growth in an unconstrained land supply scenario. Determining the demand for housing in Clarington is critical when deciding whether to increase the supply of serviced land. Given recent activity it would appear that demand for housing in Bowmanville and Newcastle is not high enough to warrant a major expansion of municipal services into these communities. There is little indication that growth on lands that are advanced into the pink areas from the blue would be incremental, that is over and above growth anticipated for the existing pink areas. Rather, recent building activity suggests that growth on the lands that are advanced would displace growth that is anticipated for the existing pink areas. REMSON 1531 10 The Municipality can influence the land supply in Claringron by controlling when and where municipal services to housing developments are fa be provided. It has little power (or authority) to control housing demand, because demand in Clarington is dependant on market forces which are influenced by rhe wider economics of the GT A and the Province. That said, given the uncertainties about future housing demand in Clarington, a number of growth scenarios have been tested as part of rhis analysis. The scenarios are described in detail in the following section. HEMS ON 1532 11 1/1 fiVE DEVELOPMENT SCENARIOS HAVE BEEN TESTED So that a reasonable range of growth patterns can be tested under the fiscal impact analysis five residential growth scenarios have been defined. A Base Case scenario tests the fiscal impact of the growth forecast established under the DC Study. The remaining four scenarios consider the effects of allowing the six subject development proposals to proceed. The five scenarios are described in detail below. A. BASE CASE Under the Base Case scenario growth is assumed to occur as forecast under the DC Study. Under this scenario the Municipality achieves 934 new units per year to 2014 when build out of the pink area is reached. The Municipality currently has a supply of draft approved or registered lands to achieve this growth. This supply does not include the vast majority of the lands relating to the subject development proposals. The Municipality's growth-related capital program under the Base Case is consistent with the program adopted under the DC Study. Capital costs identified in the DC Study have been inflated to 2007$ using the same cost index used to inflate the Municipality's development charge rates. 1 B. DEVELOPMENT SCENARIOS The four development scenarios assume that the subject development proposals are allowed to proceed and that construction of the units in the developments occurs according to the submitted phasing plans. No additional urban lands are designated in Clarington beyond those identified in the DC Study under any of the four scenarios with the exception of the lands associated with Wilmot Creek. The costs of capital works required to service the proposed developments have been updated with input from the developers. 1 Costs have been indexed at a mee of 15.1053% (Non-residential cpr (Toronto);''.qr. 2005 _ 2"" qr. 2007). HEMSON 1;;33 12 The main variables between the development scenarios are the timing of development and the timing of municipal capital works. The growth forecasts for each of the scenarios are given in Table 7. They are displayed graphically in Exhibit 2. In Scenario 1 growth in the subject development land is fully incremental, that is it occurs over and above growth anticipated under the DC Study. Overall growth in the Clarington remains consistent with the Base Case until 2009 when it accelerates dramatically to about 1,500 units per year until 2014. Growth then declines steadily to 2019 before beginning a slow rise to 2031 at the same rate as the Base Case. Under Scenario 1 long term growth in Clarington is displaced to the short-term due to land constraints that develop at about 2019. Build out of urban designated land in the Municipality occurs in 2031. Scenario 1 assumes a considerable latent demand for housing in Clarington that would in the space of a few years result in a near doubling of the amount of residential growth in the Municipality. The scenario should therefore be considered highly unlikely. Under Scenarios 2, 3 and 4 the growth trend in Clarington follows the Base Case forecast over the entire planning period to 2031. Only the rate of growth varies: · at 10 per cent below the Base Case rate in Scenario 2, with build out occurting after 2031. · at 20 per cent above the Base Case rate in Scenario 3, with build out occurring in 2027. · at the Base Case rate in Scenario 4, so that build out remains at 2031. Note that all four development scenarios allow for lands related to the subject developments to develop and be part of the land supply. The Municipality is therefore obligated to make capital investments to service these lands under all the development scenarios. 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N ~ ~ ~ ~ o N ~ ~ \ \ ~ o N . N ~ ~ . ~ . I , ~ o N N ~ ;:; o N ~ o N . ~ ~ ~ ~ ;; N ~ ~ . ~ i [ ~ ;; N . ~ . ~ 1 , j " ;; N ~ ~ ;; N o ~ . o o N ~ g N ~ o ~ ~ ~ o o N ~ ~ " o o N s o N ;; o N 1536 13 IV FISCAL IMPACT ANALYSIS APPROACH AND METHODOLOGY This section describes the structure of the fiscal impact model and the assumptions that underpin the model inputs. It also discusses the approach and methodology used in the analysis. A summary of the overall findings of the analysis is provided. Detailed results are provided in the appendices. A. MODIFIED AVERAGE COST APPROACH IS APPROPRIATE FOR THE FISCAL IMPACT OF DEVELOPMENT Municipal fiscal impact models are used to estimate the impact of new development on municipal expenditures and revenues. The most detailed type of model predicts, on a service by service basis, the capital and operating costs that are likely to result from the development of large planning areas and over long periods of time. The model developed to assess the impact of the five growth scenarios in Clarington employs a high level of detail. It allows for adjustments to be made to individual cost components (e.g. salaries, wages and benefits) within individual municipal service functions (e.g. Emergency Services, Roads and Related). The modified average cost approach used in the model allocates revenues and expenditures on an average cost basis between residential and non-residential development. Average costs are the costs of providing services expressed on a per capita basis (for costs allocated to residential development) or a per employee basis (for costs allocated to non-residential development). Under this approach, average costs are estimated for municipal services for which growth creates a need. The average costs are modified, on a service by service basis, to reflect the sensitivity of each service to new development. Operating cost impacts are then calculated for each service within the Municipality under each growth scenario. In addition, the analysis accounts for capital-induced operating costs. These are operating costs triggered when a new municipal facility, a library for example, is constructed or expanded. A capital program has been developed for each growth scenario based on current service levels provided in the Municipality. HEMS ON 1537 14 The analysis also accounts for increases in non-tax revenues. Thus, user fees and charges as well as gtants and subsidies have been examined on a service by service basis as well as by source, and have been adjusted to reflect each revenue stream's sensitivity to growth. The service-specific revenues are deducted from expenditures, on a service by service basis, to yield net expenditures. An allowance for capital costs funded from taxes (tax-supported capital costs) is also built into the analysis. These costs are annual transfers to capital funds and reserves and are calculated based on the percentage of current net expenditure related to capital transfers. A capital from current allowance of 15 per cent of additional net operating expenditures is built into the analysis. In addition to the 15 per cent allowance, the analysis accounts for the funding of shares of the growth-related capital program that cannot be recovered through development charges. B. COST/REVENUE ALLOCATION METHODOLOGY In the fiscal impact model, Municipal operating expenditures and revenues were allocated between the residential and non-residential sectors based on estimated levels of use or benefit. Additional base operating expenditures were then calculated on an average cost basis. Capital induced operating costs, a capital from current allowance, and non-development charge recoverable capital costs were also calculated. Details on the cost allocation methods are provided below. 1. Allocation of Costs & Non- Tax Revenues: Residential and Non-Residential Most 2007 budgeted expenditure and non-tax revenue was allocated between the residential and non-residential sectors based on proportionate shares of population and employment (adjusted if actual usage was known). Services such as the Public Library and Community Services were allocated entirely to residential uses because the need for these services is driven by residential development. 2. Determination of Operating Cost Impacts Current expenditures and non-tax revenues were then translated into average operating costs per capita (for costs allocated to the residential sector) or per employee (for costs allocated to the non-residential sector). The average costs per unit were then modified, on a service by service basis, to reflect the sensitivity of each service ro new development. Some municipal services, like REMSON 1538 15 Emergency Services, are highly sensitive to growth and their costs will increase in direct proportion to the increase in new development. Services which have relatively fixed costs, like Council, are less sensitive to new development. As such, the rate of increase in expenditures for these services will be less than the prevailing average service delivery costs. In addition, the analysis provides for capital-induced operating costs that result from having to staff and operate facilities such as new fire stations, community centres and libraries, as well as having to maintain parkland and roads that are added as the Municipality grows. The additional operating costs are summarized as follows: i. Additional Base Operating Net Tax levy Supported Expenditures These increase in line with population and employment growth and are calculated using 2007 operating budget expenditures net of service-specific revenues: . population growth: employment growth: $121.93 per capita $115.57 per employee . ii. Capital Induced Operating Impacts These are operating costs related to new facilities added to maintain service levels and are triggered when a facility/infrastructure becomes operational. The costs are based on separate growth-related capital programs that have been developed for each growth scenario. The Base Case uses the same program established in the 2005 DC Study. All capital costs in the growth- related capital programs have been inflated to 2007$. 3. Determination of Capital Cost Impacts It is assumed that the Municipality will continue to recover a large portion of its growth-related capital program through development charges. For the purposes of the analysis current (2007) development charge rates have been held constant over the planning period. Capital costs which are funded through the property tax levy are also built into the analysis. These costs include: REMSON 1539 16 i. Capital from Current Allowance These costs, which represent annual capital transfers to reserves, have been added at a rate of 15 per cent of additional base operating costs and capital induced operating costs. ii. Non-Development Charges Recoverable Cost Provision is made fot the recovery of the share of growth-related costs not recovered from development charges. They largely relate to the 10 per cent discounts on future growth related capital works for general services mandated by the Development Charges Act. The costs are assumed to be recovered from the property tax levy. iii. Additional Capital Costs These are capital costs that relate to general services infrastructure beyond 2014, that is beyond the 10 year growth related capital program for those services established under the OC Study. The allocation assumptions and the calculation of tax supported capital and operating cost impacts by service, as well as detailed results for each growth scenario, are contained in Appendix B. C. GROWTH-RELATED CAPITAL PROGRAMS Under the Base Case the growth-related capital program remains that which is contained in the DC Study (with costs inflated to 2007$). The timing and cost of capital works has been updated for the four development scenarios in consultation with the subject developers and Municipal staff. The ten year capital program for the general services in the DC Study has been extended to 2031. The cost and timing of roads and related capital works that relate to the subject development proposals have also been updated in consultation with the subject developers and Engineering staff at the Municipality. The growth-related roads capital programs for each of the proposed developments under the growth scenarios are provided in Appendix C. HEMSON 1540 17 D. REVENUES WILL LARGELY BE DERIVED FROM PROPERTY TAXATION Regardless of how growth proceeds in Clarington, the major source of future Municipal revenue will be property taxes. To estimate future tax revenues, assessment levels for new residential units were estimated using current average assessments for residential units sold in recent years. Table 8 shows the average per unit assessment values used for each of the new residential unit types: TABLE 8 Bowmanville Newcastle Low Density $245,000 $270,000 Medium Density $200,000 $200,000 High Density $140,000 $140,000 Weighted Average $230,000 N on-residential assessments were determined using an estimated assessment value per additional square foot of floor space. The estimates were based on prevailing assessments, building sizes (gross floor area or gfa) and typical floor area needs per employee throughout the Municipality. They are as follows: Commercial and Institutional Land Uses Industrial Land Uses $800 per m2 $650 per m' The model also accounts for tax revenue reductions caused by the development and redevelopment of land within the Municipality and through development of the lands relating to the subject developments. The added assessment under each growth scenario, as well as the calculations used to determine the assessment estimates, are provided in Appendix D. REMSON 1541 18 E. SOME VARIABLES HAVE BEEN HELD CONSTANT So that a comparative analysis of the results can be made, the fiscal model holds constant a number of variables that are likely to change over the planning period. For example: . All values (expenditures, revenues and assessment values) are held constant in 2007$ with no adjustment for inflation. Inflation will occur and will have a fiscal impact on the Municipality. However, the impact would be the same under all the scenarios. Not adjusting for inflation allows for a comparative and equitable evaluation of the results. · Current service delivery responsibility and service levels are maintained. These service levels are consistent with the Municipality's historic service levels (as documented in the DC study) and the analysis is not based on significant changes. Over time, the Municipality may be required to provide a different mix of services than it does today or may choose, or be required, to provide services at a different level or quality. Service delivery and service level changes have a fiscal impact on the Municipality but are not directly affected by the form or scale of growth. . Providing for the long-term maintenance, repair and replacement of infrastructure and facilities is a growing fiscal concern for most municipalities. In Clarington, provisions for asset management have begun. However, a higher proportion of capital transfers from current will likely be required to do more over the coming years regardless of how Clarington grows. Growth will contribute to this issue both by providing a larger assessment base to fund the asset management reserve requirement and by requiring the Municipality to add infrastructure and facilities to meet the service needs of the new residents and employees. Evidence in other jurisdictions suggests that fast growing municipalities that establish a long-term asset management plan and reserve fund adequacy policies are better positioned to deal with times of fiscal pressure than slow growth or declining municipalities. This fiscal analysis does not include additional asset management contributions beyond the Municipality's current practices. HEMS ON 1542 19 V FISCAL IMPACT ANALYSIS RESULTS In this section of the report, the results of the fiscal impact analysis are presented. The fiscal impact of residential growth under the five growth scenarios on the Municipality is discussed in the context of: A. Tax Levy B. Typical Household C. Development Charge Reserve Funds D. Debt Level The results are shown annually for the period 2008 to 2031. Before discussing the results, it warrants restating that they should be used for comparative purposes and should not be viewed as accurate predictions of what will occur twenty-five years into the future. The main objective of this assignment is to provide results that allow for the five growth scenarios to be compared. Detailed long- term financial plans for growth are not provided for any scenario. A. TAX LEVY IMPACT Table 9 shows the impact on the property tax levy of each of the growth scenarios. The impact is calculated by subtracting the total tax revenue in each year from total net expenditure. This yields the net increase in the tax levy requirement. The additional tax levy requirement is then divided by the total tax revenue to produce the percentage increase in the tax rate required to fully fund the net expenditures. The table shows that the Municipality will experience immediate pressure on its tax rate, even under the Base Case. This pressure will continue throughout the planning period. The pressure on the tax rates under the development scenarios is even greater, in most years, than the Base Case. The tax levy requirement used to calculate the figures in Table 9 is provided in Appendix D. HEMSON 1543 ~ W ~ '" ., ... Z W " .. o ~ ZW ~ffj1r "Q~ ~~j ~z;: ~~0 o~o:( ~~~ -~- ~~~ ~zw -~~ ~~>< i~~ ;;; ~ ~ u .. " " " " " " " " " " " ~ ro M .., ~ M ro M N .,; ~ ~ " ~ " <D m <D " :0 ;; = = N N " " " " " " " ~ " " ~ ~ ~ ~ = ~ M ~ :! ;; :0 m - " ;! <D ~ :!! = M = = N N " " " if: " " " " " " M M ~ ~ M = ~ 0 ~ '!i 0; ~ 0; ~ ::: <D m :: N N ~ N = = N N ~ " " " " " " " " " .., M ~ ~ N 0 = = 0 :e :! N " ~ " = " m - <D ;! N N N - = = N N " " " " " " " " " ~ = = ~ ~ = <e ~ ~ = ~ m ;! '!i ~ ~ ~ - m ~ " ::: ~ N = N " " " " '" " '" '" '" '" ~ = ~ ~ ~ ~ ~ = ~ ;! ;! ;! '!i " ~ = <D <D ~ ~ ~ N 0 0 N N '" " '" " " :; " ~ " " ~ = = ~ N ~ ~ " m ;! :! " ~ ~ oi ;! ~ ~ - N - = = N N '" " " " " '" " " " " ~ ~ M M M 0 '" ~ ~ " ~ m ~ :! ~ .; - .; ;! ~ N - = 0 N N " " " " " " " " '" " ~ m N = ~ 0 = N '" 0 ~ m ~ ;! ~ M .,; ~ .,; '!i 1; N = N N " " '" " " " " " if: " ~ 0 0 = ~ M ~ M M " " ;! ~ " ~ N " ~ ~ ~ ~ N i'l = N " " " " " " ~ '" " " .., N m N ~ ~ = .., = m m m m m '" N ~ '" ;i m .; g N - N 0 N N " " " " " ~ ~ " " " ~ = q = = .., = ;! ;! - ;! '" = .,; ~ ~ ~ .,; = - N = 0 N N " ~ " ~ 0 <1 0 <1 . . E " " ~ E " " ~ ~ ~ '" 0 ~ ~ 0 . N 8 N . . . u " " ~ ~ ~ " ~ ~ . ~ ~ ~ . . . . . 0' . . . " m m '" m '" m - . ~ - N M .., ~ - N M .., . 0 . . ,g a a a 8 0 g a a . . 0 0 0 0 '0 0 ~ - U . . . . . j . . E 0 ! ~ ~ 0 0 . 0 ~ 0 _ c ~ . . . ~ ~i 15 . 15 "'''' '" '" '" ~&! . . I'- I'- 21 ~ ~ 1544 20 B. TYPICAL HOUSEHOLD IMPACT In Table 10 the impact of each growth scenario on a typical household in Clarington is displayed. The table provides the average annual household taxes, based on an average assessed value of $230,000 and the change in taxes from 2007 over the entire planning period. As with the tax rate impacts above, Table 10 shows that on average property taxes would rise immediately in the Municipality. This is true under all the scenarios, even the Base Case, though the development scenarios exacerbate the fiscal problem. It should be reiterated that the property taxes shown in Table 10 do not account for the effects of inflation or of long-term maintenance, repair and replacement of infrastructure requirements. Both will create fiscal pressure on future property taxes over and above the impact created by growth. C. DEVELOPMENT CHARGE RESERVE FUNDS IMPACT Table 11 below provides an example of the impact of the growth scenarios on the Municipality's development charges reserve funds, in this case the roads and related reserve fund. The table demonstrates that this reserve fund already sits in a deficit position in the amount of59.2 million. The deficit was anticipated under the DC Study as a number of large road construction projects were identified in the early years of the growth-related capital program. However, the development charge rates under the DC Study were calculated so that the balance of the reserve fund was zero in 2031. The Base Case now shows that, under current rates, a negative balance that approaches $37.7 million would result. Table 11 also shows that even with the growth forecast under Scenario 1, which sees a near doubling of residential construction activity in Clarington in the short term, a negative balance of $23.8 million results in 2031. The other scenarios create even greater fiscal pressures, with Scenario 2 resulting in a 2031 negative balance of $68.8 million and a lowest balance of $89.1 million. 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Q 0 N .,; 0 .,; N 0_ 0_ 0.0" o_ N " 0_ 0_ 0_ O_ N "' m ;: m :> N ~ ;: ;! 8 ~ - - - - tl'l-fflffl6't0 ffltl3-tlt0ffl W6'ifflil3-tIt tlt0t1t{fl&'j- Q ~ "' ~M " N ~ ~ m ~ 0 ~ N 0 ~ W~ N ~ M ~ ~ ~ N N Q N ~ W ~ W 0 "- ~ 0 W Q 0 ;:: '" '" oed Q N :" <D N " N 0_ 0_ 0_ 0_ o_ N 0_ -- 0_ -- N " ;: 8 ;: N W :!' ;: ;! - - - - - - - - - - tlt6't<1)-<1)-f>Ol- ffi I!Ittfl <1)-0 tlt6't6'}{fltfl tn&'l-6'ttfltlt "' :; " ~ " ;; N ~ .... " " " " ~- .... M ~ N N ~ - "<I:~ 0 Q 0 M ~ M Q W M ~ N W Q aieD N W .; 0 "':10 W W N 0_ 0_ Q- Q- 0 N 0_ -- ": - - N ~ ~ " ~ " N ~N .... N - - - - - - - - - - - N - tIt<1)-(fltfltlt tl'ttlttlt<1)-tIl- lhtlt-&'l-tlttlt (flfitl't6'ttlt "' ~ ~ ~ ~ ~ Q ~ ;; " OM "' "' W ~ WW Q ~ N~ ~ N Q N Q N Q ~ ~ ~ ~ ~ Q m " wm Q 0 N .. ""':N Q N oDeD " 0 N 0_ 0 0_ 0_ O_ N eno.o. o_a. N 8 8 ~~ N ~ 8 ;! 8 ;! - - - - - tit {flio'l-to'}0 tl76't6'ttlttlt 6'ttltW&'t0 to')/fltlttlttfl .... :5 . ~ " E ~ g " 15, , c c . c ~ " " " "- ~ M ~ " - ~ M~ ~ ~ - N M ~ " - N M ~ 0 . . 0 . ~ . .g 0 g 0 . 0 0 0 0 ~ . 0 0 0 0 . o 0 0 .g ~ " , , " "16 .~ .~ " " " " -, :. " ";:;"C -, . . . . . ~ . . . . . . . , . c c c c . c c c 0 . c c c c ~ c c c c o . . 888 . . . ~ . ::E"'QI . . ~ . ~ . . :r . 0 . 0 0 0 . 0 0 0 . 0 0 0 _OJ V> V> V> V> OJ V> V> V> V> _OJV> V> V> V> mv> V> V> V> . ~ 0 .~ a .... ~ 1546 ~ ~I ~ t . ~ . . . . ~ ~ . . , o ~ 15, ~ " 21 TABLE 11 - Roads DC Reserve Fund Balance (OOO's of constant $) Scenario Balance in 2007 Lowest Balance Balance in 2031 Base Case -$9,179 -$69,225 -$37,672 Scenario 1 -$9,179 -$62,216 -$23,808 Scenario 2 -$9,179 -$89,054 -$68,848 Scenario 3 -$9,179 -$61,205 -$27,224 Scenario 4 -$9,179 -$79,115 -$40,034 Maintaining this level of negative reserve fund balance is neither fiscally manageable or responsible. Projected development charge revenues, including detailed cashflow calculations of the roads and related development charge reserve fund, under each scenario are provided in Appendix E. D. DEBT LEVEL IMPACT Historically the Municipality has been able to operate with very low debt levels and minimal annual debenture payments. Moreover, most current debt has been funded from development charge revenues. The fiscal impact analysis demonstrates that, under all of the growth scenarios, the Municipality will face increasing pressure to rely on debt financing. Table 12 summarizes the annual debt payments under each scenario. The figures in Table 12 relate only to funding of non-development charge recoverable costs and therefore will require funding from the tax base. As shown, debenture requirements increase under the Base Case and become higher under the development scenarios. REMSON 1547 ::! w -' 10 ~ '" 0. 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The overall impact of the development proposals is discussed though no judgements about the merits of anyone proposal is made. A. KEY FINDINGS The analysis of the fiscal impact of growth in Clarington has yielded some important findings that will require the municipality to undertake certain actions and consider modifying and enhancing policies dealing with the financing of growth. The following is an overview of some of the key findings of the analysis: · Growth does not fully pay for growth. As with all municipalities in the Province, under the current DCA, new development does not fully pay for the initial capital costs associated with expanding infrastructure to meet the servicing needs of new development. · The DCA legislated exemptions for certain services and the historic service level funding cap are the two largest factors that impact a municipality's ability to fund growth-related capital without negatively impacting existing taxpayers. The services most adversely affected are the 'soft' services ofIndoor Recreation and the Library Board. In addition, as the need for these services is driven by the residential sector, development charges for these services are largely funded by residential growth. · Historically, Clarington has had lower levels ofIndoor Recreation and Library Board services than comparable municipalities. In recent years the Municipality has been improving its service levels in these areas with the support of tax dollars and by implementing maximum permissible development charges for these services. HEMS ON 1549 23 · The fiscal impact analysis has clearly shown that the Municipality's current development charges are too low and do not adequately fund the eligible growth-related costs for which they are charges. The most significant funding shortages are with respect ro the provision of roads and related infrastructure. The largest contributing factor is that the cost of the roads projects are significantly higher than was forecast in the 2005 OC Study. This finding is consistent with that of many municipalities in Ontario as the development charge inflation indexing has not kept pace with the actual increase in construction costs. · the Municipality's capital budget is strained and debt levels are set to increase. Clarington has been experiencing significant growth and development and has responded by expanding existing infrastructure and adding new facilities and infrastructure. In addition, the Municipality is faced with meeting the servicing needs of existing residents and maintaining existing assets. . Growth, by way of new assessment, can assist in meeting the fiscal pressures it creates but if the rate of growth is too rapid and the need for spending capital monies to expand capacity is faster than the corresponding rate of . assessment growth the Municipality will continue to experience pressure on tax rates. The issuance of debt will provide some short-term mitigation of the tax rate pressures but will result in long-term negative fiscal impacts. Accruing debt may limit the Municipality's ability to respond to other capital spending priorities and objectives, unanticipated spending needs, or a slow-down in growth and the economy. . The analysis has shown, and is corroborated by similar studies in other jurisdictions, that Clarington faces additional growth-related fiscal challenges as it strives to accommodate and service growth in three distinct and geographically separate communities. · Many of these findings are relevant to Clarington under any of the growth scenarios tested under this analysis. However, allowing additional lands into the current or short-term land supply will exacerbate the fiscal pressures described above. REMSON 1550 24 B. RECOMMENDATIONS The results show that the Municipaliry of Clarington has a fiscal problem. The negative impact of the Base Case on the Municipality's finances show that the problem is largely the result of a rapid increase in the cost of providing services in recent years. However, the problem will worsen should development be allowed to proceed at a rate faster than anticipated under the 2005 DC Study. The six development proposals that are the subject of this analysis wish to advance development in this way. There are a number of ways to mitigate the fiscal problem. To that end the Municipality should consider the following: · development charge rates and policies should be reviewed immediately as the current rates are not sufficient to recover the full cost of servicing growth in the Municipality. The recent rise in capital costs needs to be incorporated into the rates and a comprehensive review of the growth-related capital program, especially for the roads and related service, needs to be made. · as demonstrated earlier in Section II the 2005 DC forecast remains on target. Nevertheless, in light of the development proposals submitted since 2005 the Municipality may wish to review land supply and housing demand, either in Clarington as a whole or in one or more of its communities, as part of any development charges review. . the Municipality should continue to rely on development charges background studies and related planning policies to manage future growth. However, given the fiscal pressures experienced in recent years the Municipality may wish to consider mitigating the risk of expanding municipal services by entering into cost sharing agreements with developers. Some municipalities in Ontario, particularly those experiencing high rates of growth, regularly make use of such agreements. In Clarington, where future rates of growth are less certain, such agreements are not without risk. · The fiscal impact analysis demonstrates that, under the Municipality's current policies and practices, advancing development will have an overall negative fiscal impact on the Municipality. It would obligate the Municipality to make significant capital investments to facilitate residential development over and above its current commitments. Even under a high growth scenario this course HEMSON 1551 25 of action would increase the fiscal pressures facing the Municipaliry. It may also jeopardize plans to advance non-residential development in Clarington. HEMSON 1552 APPENDIX A DC STUDY GROWTH FORECAST MAPS 1553 HEMSON Muncipality of Clarington Development Charges Update Map Legend - - Street Light Installation - Streetscape - - 0 Recreational Trail Future Community Facilities, Parks and School o District Park . Community Park . Neighbourhood Park .! Elementry School .tt Secondary School ~ Fire Hall Existing Development Lands D Existing Residential fill Existing Non-Residential Location and Timing of Development Lands D 2005 to 2014 Horizon Period D 2015 to Residential buildout (2031) Location of Non-Residential Growth' Public Works Projects Inlcuded In Development Charge Calculatation 3 Intersection Improvements ~ Bridge Spanning Watercourse e Grade Separation 8 Reconstruct Exist. Grade Separation ~ Level R.R. Crossing Improvements D New Culvert . Culvert Extension . Culvert Oversizing - Road Construction - Sidewalk Construction , , 1__ J Non-Developable Residential Boundary - - , Urban Boundary . Timing and Amount of Non-Residential Growth to be consistent with Development Forecast completed by Hemson Consulting for the Development Charge Update 1554 "~~ L = "'" - --- ---}, ~ ~il---);-;~ =- ~~ -,,~~:: ~ ~\S-"""'':'' ;:::::T ;; I 1 i! -I..L" J'u ,.1 ,:~", '., . ~ AI:'~~ .,._--~,~, J'':! ,-\,.\ i ""li~' ';'c~,'Q~M .NVIlL ~ \frI.1;< .~.~'3~;.. ,<;-S~", 'i ~l Z ~ . 'j I.. r 1r''''''''JC::S;/(~~ -.. ';" LJ;,' J ~,-, _ ." ,,__ 1> n~" ,;---\.~ ~I\_>~'~: . ~ . ,- ~J . rn:J,~hl..E3" ~ .. '" \:.... E0~ t' ,,~ Ie' ~ f;i~m l.( J "" .ll U Y- e:> '~ ; ". \n~.~ ~I-- ,L1~: ~~r, .. ~ 3 i , ~ " I .... '''b\t'' e:l ~u, G ~~ ~( ~ ~ o , ".-C' . ,'Cl "=~ L ;:1 c::J '(< ,~ \., .., :t 01=: ':', <=g, 0 ~', " ~_o~ ~~~__~ .: ,: ~ J~'! ~~' ~:",Q TIf~IQ9"?\: ~ · \ ~ _________ L ] '._~ IIJ 1 --', r\ ~ = L:1@ ~~, /- ~ \.';'. 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U C..l \(~ " A New Firehall to be constructed in _ undefined location in Newcastle ) ---------- 1 :30 000 1556 APPENDIX B CAPITAL AND OPERATING COST IMPACTS REMSON . 1557 APPENDIX 8.1 MUNICIPALITY OF CLARINGTON FISCAL IMPACT ANALYSIS OF NEW DEVELOPMENT OPERATING COST IMPACT ASSUMPTIONS Financial Data: Actual: 2006 Budget: 2007 1. Population and Employment Ratios 2007 1. Population 2. Employment Total # 80,437 21,994 102,430 % 79% 21% 2. Residential Units 2001 2007 23,380 28,003 3. Estimated Non-Residential Space (2007) Population Related Employment Major Office Employment (over 20,000 sq. ft.) Employment land Employment Total 301,416 sq.m. 2,850 sq.m. 710,655 sqm 1,012,071 sq.m. 4. Residential and Non-Residential Cost Allocation Residential Non-Res 1. General Government 79% 21% 2. Corporate Services 79% 21% 3. Emergency Services 79% 21% 4. Engineering 79% 21% 5. Operations 79% 21% 6. Community Services 100% 0% 7. Planning Services 79% 21% 8. library Services 100% 0% Sensitivity 5. Growth Sensitivity Rating Weighting Not Sensitive to New Growth 1 0% little To No Sensitivity 2 25% Partial Sensitivity 3 50% High Sensitivity 4 75% Full Sensitivity 5 100% I ncrease Service level & Costs 6 110% HEMSON 1558 APPENDIX 8.2.1 MUNICIPALITY OF CLARINGTON FISCAL IMPACT ANALYSIS OF NEW DEVELOPMENT SUMMARY OF OPERATING COST IMPACTS 8Y SERVICE - WITH PROPOSED DEVELOPMENT GENERAL GOVERNMENT Summary of Growth-Impact Expenditures 1 Mayor and Council 2. Administration 3. Clerks - Unassigned 4. Clerks - Administration 5 Clerks - Animal Services 6. Clerks - Municipal Law Enforcement 7. Clerks - Parking Enforcement 8. Clerks - Cemetery 9 Clerks - Fleet 10. Finance 11. Unassigned, Unclassified & Grants 12. Election Total General Government CORPORATE SERVICES Summary of Growth-Impact Expenditures 1. Administration 2. Human Resources & PayrolJ 3. Communications & Marketing 4. Information Technology 5. Purchasing 6. Health & Safety 7. Physician Recruitment Total Corporate Services EMERGENCY SERVICES Summary of Growth-Impact Expenditures 1. Administration 2. Fire Prevention 3. Fire Supression 4. Fire Training & Technical Support 5. Fire Communications 6. Fire Mechanical 7. AU Stations - Part Time Admin 8. Municipal Operations Centre Total Emergency Services ENGINEERING Summary of Growth-Impact Expenditures 1. Administration 2. Building Inspection 3. Transit 4. Park Development 5. Street Lights 6. Road Maintenance ($0 in 2006 and 2007) 7. Fleet Total Engineering HEMSON Residential Non-Residential Per Capita Per Employee $ 3.71 $ 371 $ 1.95 $ 1.95 $ (0.04) $ (004) $ 2.62 $ 2.62 $ 1.41 $ 1.41 $ 2.37 $ 2.37 $ 0.67 $ 0.67 $ (1.70) $ (1.70) $ 0.08 $ 0.08 $ 2.43 $ 2.43 $ 5.58 S 5.58 $ 0.25 $ 0.25 $ 19.31 $ 19.31 Residential Non-Residential Per Capita Per Employee $ 1.43 $ 1.43 $ 4.38 $ 4.38 $ 3.27 $ 3.27 $ 3.67 $ 3.67 $ 182 $ 1.82 $ 0.12 $ 0.12 $ $ $ 14.68 $ 14.68 Residential Non-Residential Per Capita Per Employee $ 7.70 $ 7.70 $ 1.95 $ 1.95 $ $ $ 0.55 $ 0.55 $ 1.86 $ 1.86 $ 068 $ 0.68 $ $ $ 0.17 $ 0.17 $ 12.90 $ 12.90 Residential Non-Residential Per Capita Per Employee $ 7.65 $ 7.65 $ (785) $ (7.85) $ $ $ $ $ $ $ $ $ 005 $ 0.05 $ (0.16) $ (0.16) 1559 APPENDIX 8.2.2 MUNICIPALITY OF CLARINGTON FISCAL IMPACT ANALYSIS OF NEW DEVELOPMENT SUMMARY OF OPERATING COST IMPACTS BY SERVICE. WITH PROPOSED DEVELOPMENT OPERA nONS Summary of Growth-Impact Expenditures 1. Unassigned 2. Administration 3. Street Lighting 4. Parks 5 Cemeteries 6. Building & Property Services 7. Road Maintenance 8. Hardtop Maintenance 9. Loosetop Maintenance 10. VVinter Control 11. Safety Devices 12. Storm Water Management 13 Regional Roads 14 Fleet Total Operations COMMUNITY SERVICES Summary of Growth-Impact Expenditures 1. Administration 2. Programs Admininstration 3 Facilities 4. Proshop 5. Concessions 6. Aquatic Programs 7. Fitness Programs 8. Recreation Programs 9. CIS Museum Programs 10 Other Cultural 11. Municipal Grants - Recreation Groups 12. Municipal Grants - Municipal Boards 13 Municipal Grants - Other Total Community Services PLANNING SERVICES Summary of Growth-Impact Expenditures 1. Unassigned 2. Administration 3. Environmental Total Planning Services LIBRARY SERVICES Summary of Growth-Impact Expenditures 1. Operations - Libraries 2. Community Services - Libraries Total Library Services Total Cost per Capita/Employee HEMS ON Residential Per Capita $ (1.03) $ 7.07 S 2.63 $ $ 0.96 $ 5.03 $ 10.67 $ 7.04 $ 3.87 $ 9.67 $ 1.60 $ 0.05 $ 0.16 $ 2.03 $ 49.72 Residential Per Capita $ 5.50 $ 3.51 $ $ 0.01 $ (5.03) $ $ $ $ (0.19) $ 2.48 $ $ $ $ 6.28 Residential Per Capita $ 2.35 $ 17.06 $ (0.28) $ 19.13 Residential Per Capita $ 0.09 $ $ 0.09 $ 121.93 Non-Residential Per Employee $ $ $ S $ $ $ $ $ $ $ $ $ $ $ (1.03) 7.07 2.63 0.96 5.03 10.67 7.04 3.87 9.67 1.60 0.05 0.16 2.03 49.72 Non-Residential Per Employee $ $ $ S S $ $ $ S $ $ $ $ S Non-Residential Per Employee $ 2.35 $ 17.06 $ (0.28) $ 19.13 Non-Residential Per Employee $ $ $ $ 115.57 1560 M iii >< Q z W "- "- <( I-~ Zo W<( Z:&"- 0"-:& 1-0- 0-11- ZW<I) ->0 "'WO :l00 O~Z lLW;::: OZ<( >"-'" I-OW ::itig; ~~C -,,-Z ~:::Ec:( ~:i...J ~C(~ 0_ <1)"- -<( "-0 M ~ m ~ ""':Lri ~~ ~~ . ~ "'"" .~~ OW " " . . ~~ W W 00 00 niiii ~~ - M <> N ("')0100)1.0 OC'\l(OMC"') "'"a.....CON r::r;~-'<3"- tIl-woo-ww. ~ N <> N 100.....1'...... ,"l'-coON l'-V"<t(")N f'.,.-~-6.....-(',f EI'l-I;<l-OO-W-E/7 N <> N .......1O......(I)C\j o:::ron.....LOOO CO.....a;lLOq- l!J-~-C'4-.....-C'4- w-oo-woo-w- :e <> '" OLONO<XI LO(OCDtDN VOJD:lI'--N M-QJ"'....."'.....'" 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" .. . . . - . . < ~ . . . ~ .~ u ~ , . , . , . 9 . l l l l l , , l , l l l " ~ I I I I I I I I I I I I " Z 2 Z Z 2 Z Z 2 Z Z Z 2 Z Z 2 Z Z Z Z Z Z . ~~ i= ; 00 . ! ~~ '" . @ . ~ . . . . . . . . . . z . >0 . 0 0 0 " 0 0 0 0 0 0 0 " 0 0 0 0 < u , . 0 z z E ~ ~ ~ ~ ~ ~ . ~ ~ ~ ~ . ~ ~ ~ ~ . ~ ~ ~ ! ~ . . . ~ 0 z ~I ~ 1J67 APPENDIX C.6 MUNICIPALITY OF CLARINGTON FISCAL IMPACT ANALSIS OF NEW DEVELOPMENT COMPARISON OF ROAD PROJECT FUNDING FOR PROPOSED DEVELOPMENTS WITH DC STUDY Port Darlington Triggered Projects Total Triggered Road Expenditures (000 $) 2008-2014 2015~2019 2020-2025 2026-2031 Total Base Case (DC Study) $ $ 1,699.8 $ 7,981.9 $ $ 9,681.7 2. Development Scenarios $ 7,981.9 $ 1,699.8 $ $ $ 9,681.7 Difference $ 7,981.9 $ $ (7,981.9) $ $ Northglen Triggered Projects Total Triggered Road Expenditures (000 $) 2008-2014 2015-2019 2020-2025 2026-2031 Total 1. Base Case (DC Study) $ 3,485.6 $ 2,033.7 S 660.2 $ $ 6,179.5 2. Development Scenarios $ 4,486.8 $ 1,253.1 $ $ 439.6 $ 6,179.5 Difference $ 1,001.2 $ (780.7) $ (660.2) $ 439.6 $ Brookhill Triggered Projects Total Triggered Road Expenditures (000 $) 2008-201' 2015-2019 2020-2025 2026-2031 Total 1. Base Case (DC Study) $ 3,868.4 $ 1,562.7 $ 3,667.7 $ $ 9,098.8 2. Development Scenarios $ 5,627.4 $ 3,471.5 $ $ $ 9,098.8 Difference $ 1,758.9 $ 1,908.8 $ (3,667.7) $ $ Darlington Mills Triggered Projects Total Triggered Road Expenditures (000 $) 2008-201' 2015-2019 2020-2025 2026-2031 Total 1. Base Case (DC Study) $ 2.448.8 $ 532.0 $ $ $ 2,980.8 2. Development Scenarios $ 2,733.5 $ 247.3 $ $ $ 2,980.8 Difference $ 284.7 $ (28'.7) $ $ $ North Newcastle Triggered Projects Total Triggered Road Expenditures (000 $) 2008-2014 2015-2019 2020-2025 2026-2031 Total Base Case (DC Study) $ $ 4,884.2 $ $ 253.2 $ 5,137.4 2. Development Scenarios $ 2,117.1 $ 3,020.3 $ $ $ 5,137.4 Difference $ 2,117.1 $ (1,863.9) $ $ (253.2) $ Total Triggered Road Expenditures (000 $) 2008-201' 2015-2019 2020-2025 2026-2031 Total TOTAL ALL TRIGGERED PROJECTS ,. Base Case (DC Study) $ 9,802.8 $ 10,712.3 $ 12,309.8 $ 253.2 $ 33,078.2 2. Development Scenarios $ 22,946.8 $ 9,691.9 $ $ 439.6 $ 33,078.2 Difference $ 13,143.9 $ (1,020.5) $ (12,309.8) $ 186.4 $ HEMS ON 1568 APPENDIX D SUMMARY OF ASSESSMENT ESTIMA TES AND TAX REVENUE 1569 REMSON ci x 2i z w ~ ~ < ~ z w ~ ~ o ~ zw 0> t;~~ ~~~ :5z~ ul:5~ ~~~ ~~~ ~<~ <zz !!:<()( ~t;~ ~:l: ~! ~ < u .. 0: . ;; N ~ . . N ~ . . N ~ . . N ;; . N <Xl"l~r--'<t <0 r--CO<l) II> ..........0<010 C'\l"a;iC"iM-~ """<oNr--o:r lO<ON<"ll() ~t'<t-..r~ Ww<1i...... 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O::~oZZ<ii ~8~];~E ~ <(~~'O o u:g.,-: w ~> .. u < ~ m ~ . o ~ < 2 W U .. 1570 Property Frontage Sample Average CVA (2005) Code in Feet Size Average Maximum Minimum Median 301 nfa 179 $ 368,000 $ 664,000 $ 189,000 $ 354,000 <30 174 $ 214,000 $ 440,000 $ 131,000 $ 210,000 30 -40 1951 $ 243,000 $ 463,000 $ 124,000 $ 244,000 40 - 50 2049 $ 253,000 $ 477,000 $ 110,000 $ 250,000 50 -60 1240 $ 243,000 $ 608,000 $ 128,000 $ 233,000 60+ 2613 $ 272,000 $ 984,000 $ 103,000 $ 241,000 All 8206 $ 256,000 $ 984,000 $ 103,000 $ 242,000 305 <30 2413 $ 200,000 $ 273,000 $ 155,000 $ 198,000 30-40 1478 $ 203,000 $ 383,000 $ 158,000 $ 198,000 40+ 401 $ 219,000 $ 346,000 $ 23,000 $ 214,000 All 4292 $ 203,000 $ 383,000 $ 23,000 $ 199,000 309 <20 517 $ 163,000 $ 214,000 $ 114,000 $ 162,000 20+ 861 $ 170,000 $ 220,000 $ 136,000 $ 170,000 All 1378 $ 167,000 $ 220,000 $ 114,000 $ 167,000 311 <20 169 $ 157,000 $ 298,000 $ 95,000 $ 161,000 20+ 337 $ 164,000 $ 439,000 $ 80,000 $ 162,000 All 506 $ 161,000 $ 439,000 $ 80,000 $ 161,000 370 All 465 $ 130,000 $ 135,000 $ 101,000 $ 134,000 APPENDIX 0.2 - PAGE 1 MUNICIPALITY OF CLARINGTON FISCAL IMPACT OF NEW DEVELOPMENT ASSESSMENT SUMMARIES FOR HOMES BUILT IN BOWMANVILLE 2001 _ 2006 Key to Property Codes: 301 - Single family dwelling (not on water) 305 - Link home, Le. homes linked together at the footing or foundation by a wall above or below grade. 309 - Freehold Townhouse/Row house. i.e. more than two units in a fOW with separate ownership 311 - Semi-detached dwelling 370 - Condominiums HEMSON 1571 APPENDIX D.2 - PAGE 2 MUNICIPALITY OF CLARINGTON FISCAL IMPACT OF NEW DEVELOPMENT ASSESSMENT SUMMARIES FOR HOMES BUILTIN NEWCASTLE 2000 _ 2005 Property Frontage Sample Average CVA (2005) Code in Feet Size Average Maximum Minimum Median 301 <36.0' 12 $ 273,000 $ 346,000 $ 185,000 $ 274,000 36.0 - 39.02 16 $ 290,000 $ 390,000 $ 207,000 $ 274,000 40.0 - 42.0 78 $ 249,000 $ 373,000 $ 190,000 $ 255,000 43.0 - 46.0 39 $ 269,000 $ 336,000 $ 207,000 $ 269,000 46.0+ 92 $ 287,000 $ 370,000 $ 191,000 $ 281,000 All 237 $ 271,000 $ 390,000 $ 185,000 $ 265,000 305 <33.0 112 $ 195,000 $ 225,000 $ 173,000 $ 195,000 33.0 - 39.0 41 $ 207,000 $ 263,000 $ 179,000 $ 205,000 40.0+ 31 $ 225,000 $ 269,000 $ 175,000 $ 224,000 All 184 $ 203,000 $ 269,000 $ 173,000 $ 198,000 309 <10.0 81 $ 166,000 $ 206,000 $ 151,000 $ 167,000 >10.0 30 $ 176,000 $ 199,000 $ 165,000 $ 176,000 All 111 $ 170,000 $ 206,000 $ 151,000 $ 168,000 Key to Property Codes: 301 - Single family dwelling (not on water) 305 - Link home, i.e. homes linked together at the footing or foundation by a wall above or below grade. 309 - Freehold Townhouse/Row house, i.e. more than two units in a fOW with separate ownership HEMSON 1572 Notes 1. 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