Loading...
HomeMy WebLinkAbout2024-04-26 Electronic Council Communications Information Package Date:April 26, 2024 Time:12:00 PM Location:ECCIP is an information package and not a meeting. Description: An ECCIP is an electronic package containing correspondence received by Staff for Council's information. This is not a meeting of Council or Committee. Alternate Format: If this information is required in an alternate format, please contact the Accessibility Coordinator, at 905-623-3379 ext. 2131. Members of Council: In accordance with the Procedural By-law, please advise the Municipal Clerk at clerks@clarington.net, if you would like to include one of these items on the next regular agenda of the appropriate Standing Committee, along with the proposed resolution for disposition of the matter. Items will be added to the agenda if the Municipal Clerk is advised by Wednesday at noon the week prior to the appropriate meeting, otherwise the item will be included on the agenda for the next regularly scheduled meeting of the applicable Committee. Members of the Public: can speak to an ECCIP item as a delegation. If you would like to be a delegation at a meeting, please visit the Clarington website. Pages 1.Region of Durham Correspondence 1.1 Notice of Adoption - With Respect to Amendment #198 to the Durham Regional Official Plan Section 17(23) of the Planning Act - April 24, 2024 4 1.2 2024 Annual Climate Change Progress Report (2024-COW-12) - April 25, 2025 7 1.3 The Region of Durham’s response to the Ontario Regulatory Registry posting related to the “Proposal to create regulation to support implementation of the GO Transit Station Funding Act, 2023” (2024- COW-14) - April 25, 2024 33 1.4 Durham Agricultural Advisory Committee Resolution re: Stormwater Management Fees - April 25, 2024 54 1.5 2023 Annual Building Activity Review - April 26, 2024 55 2.Durham Municipalities Correspondence 3.Other Municipalities Correspondence 3.1 St. Catharines - Provincial Regulations Needed to Restrict Keeping of Non-native ("exotic") Wild Animals - April 23, 2024 80 4.Provincial / Federal Government and their Agency Correspondence 4.1 Robyn Kurtes, Director, Environmental Policy Branch, Ministry of the Environment, Conservation and Parks - Decision on Excess Soil Regulation Amendments - April 25, 2024 82 4.2 Andrea Khanjin, Minister of the Environment, Conservation and Parks - April 22, 2024 84 (Response to your request for a comprehensive environmental assessment for the Regional Municipalities of York and Durham’s (Regions) proposed increase in treatment capacity at the Durham York Energy Centre (DYEC) from 140,000 to 160,000 tonnes per year (the Project)) April 26, 2024 Electronic Council Communications Information Package (ECCIP) Page 2 5.Miscellaneous Correspondence 5.1 Minutes of the Orono Downtown Business Improvement Area dated April 18, 2024 89 5.2 Kawartha Conservation Authority - 2023 Audited Financial Statements - April 25, 2024 93 April 26, 2024 Electronic Council Communications Information Package (ECCIP) Page 3 File #: OPA 2023-002 Related File(s): N/A Subject Lands: 4854 Concession Road 5 Part Lot 1, Concession 5, Municipality of Clarington Date of Decision: April 24, 2024 Date of Notice: April 25, 2024 Last Date of Appeal: May 15, 2024 The Regional Municipality of Durham Notice of Adoption With Respect to Amendment #198 to the Durham Regional Official Plan Section 17(23) of the Planning Act Purpose and Effect of the Requested Official Plan Amendment The purpose and effect of this Amendment is to permit the severance of a dwelling rendered surplus as a result of the consolidation of non-abutting farm parcels on lands designated as “Prime Agricultural Areas”. The Amendment and background materials are available for inspection at the Regional Planning and Economic Development Department, Regional Municipality of Durham, 605 Rossland Road East, Fourth Floor, P.O. Box 623, Whitby, Ontario, Monday to Friday between 8:00 a.m. and 5:00 p.m. Related Planning Act Files N/A Written and Oral Submissions Public consultation on the application was undertaken in accordance with the requirements of the Planning Act. The Region received no inquiry on the application. Further details regarding how the public input was considered is available in Commissioner’s Report #2024-P-8and in the Planning and Economic Committee minutes dated April 4, 2023. Decision of Regional Council The Council of the Regional Municipality of Durham adopted Amendment #198 to the Durham Regional Official Plan by By-law #2024-018, on April 24, 2024. Page 4 Page 5 If this information is required in an accessible format, please contact 1-800-372-1102 ext. 2097 Amendment #198 to the Regional Official Plan Purpose and Effect: The purpose and effect of this Amendment is to permit the severance of a dwelling rendered surplus as a result of the consolidation on non-abutting farm parcels on lands designated as “Prime Agricultural Areas”. Location: The subject site is located on the north side of Concession Road 5, west side of East Townline Road. The property is municipally known as 4854 Concession Road 5 and is part of Lot 1, Concession 5 in the Municipality of Clarington. Basis: The residential dwelling on the subject site is not required by and is surplus to the farm operation. The amendment conforms with the Durham Regional Official Plan, the Greenbelt Plan, and the Growth Plan for the Greater Golden Horseshoe and is consistent with the Provincial Policy Statement. Amendment (current Regional Official Plan – 2020 Consolidation): The Durham Regional Official Plan is hereby amended by adding the following policy exception to section 9A.3.2: “9A.3.2 (iii) A surplus farm dwelling rendered surplus from the parcel identified as Assessment No. 18-17-030-080- 13500 located in Part of Lot 1, Concession 5 in the Municipality of Clarington, subject to the inclusion of the provisions in the zoning by-law to prohibit the construction of any new dwelling on the retained parcel; and the use of the existing barn for housing livestock. In accordance with Provincial and Regional policies, no further severances of the property are permitted.” Implementation: The provisions set forth in the Durham Regional Official Plan regarding the implementation of the Plan shall apply in regards to this Amendment. Interpretation: The provisions set forth in the Durham Regional Official Plan regarding the interpretation of the Plan shall apply in regards to this Amendment. Page 6 If you require this information in an accessible format, please call 1-800-372-1102 ext. 2097. The Regional Municipality of Durham Corporate Services Department – Legislative Services Division 605 Rossland Rd. E. Level 1 PO Box 623 Whitby, ON L1N 6A3 Canada 905-668-7711 1-800-372-1102 durham.ca Alexander Harras M.P.A. Director of Legislative Services & Regional Clerk Sent Via Email April 25, 2024 Patrice Barnes MPP, Ajax 230 Westney Rd. S Ajax, ON L1S 7J5 Dear Patrice Barnes: RE: 2024 Annual Climate Change Progress Report (2024-COW-12), Our File: D19 Council of the Region of Durham, at its meeting held on April 24, 2024, adopted the following recommendations of the Committee of the Whole: “A) That Regional Council receive this 2024 Climate Change Progress Report for information; and B) That a copy of Report #2024-COW-12 of the Chief Administrative Officer be sent to all Durham MPs and MPPs, local area municipalities, Conservation Authorities, and local energy utilities, for their information and consideration.” Please find enclosed a copy of Report #2024-COW-12 for your information. Alexander Harras Alexander Harras, Director of Legislative Services & Regional Clerk AH/sd Enclosed c: E. Baxter-Trahair, Chief Administrative Officer M. Holland, MP (Ajax) J. Jivano, MP (Durham) J. Schmale, MP (Haliburton/Kawartha Lakes/Brock) P. Lawrence, MP (Northumberland/Peterborough South) C. Carrie, MP (Oshawa) J. O’Connell, MP (Pickering/Uxbridge) Page 7 If you require this information in an accessible format, please call 1-800-372-1102 ext. 2097. R. Turnbull, MP (Whitby) T. McCarthy, MPP (Durham) L. Scott, MPP (Haliburton/Kawartha Lakes/Brock) D. Piccini, MPP (Northumberland/Peterborough South) J. French, MPP (Oshawa) P. Bethlenfalvy, MPP (Pickering/Uxbridge) L. Coe, MPP (Whitby) J. Grossi, Clerk, Town of Ajax F. Lamanna, Clerk, Township of Brock J. Gallagher, Clerk, Municipality of Clarington M. Medeiros, Clerk, City of Oshawa S. Cassel, Clerk, City of Pickering R. Walton, Acting Clerk, Township of Scugog D. Leroux, Clerk, Township of Uxbridge C. Harris, Clerk, Town of Whitby C. Darling, CAO, Central Lake Ontario Conservation Authority L. Laliberte, CAO, Ganaraska Region Conservation Authority M. Majchrowski, CAO, Kawartha Conservation R. Baldwin, CAO, Lake Simcoe Region Conservation Authority J. MacKenzie, CEO, Toronto and Region Conservation Authority J. Maclean, Elexicon Energy J. Taylor, Oshawa Power G. Lind, Hydro One B. Lee, Enbridge Page 8 If this information is required in an accessible format, please contact 1-800-372-1102 ext. 3802. The Regional Municipality of Durham Report To: Committee of the Whole From: Chief Administrative Officer Report: #2024-COW-12 Date: April 10, 2024 Subject: 2024 Annual Climate Change Progress Report Recommendations: That the Committee of the Whole recommends to Regional Council: A) That Regional Council receive this 2024 Climate Change Progress Report for information; and B) That a copy of this report, be sent to all Durham MPs and MPPs, local area municipalities, Conservation Authorities, and local energy utilities, for their information and consideration. Report: 1. Purpose 1.1 Leadership on climate change and sustainability is a key strategic priority for the Region, as reflected in the Region’s strategic plan as well as within the new Council adopted Regional Official Plan. Regional Council’s declaration of a climate emergency in January 2020 was a key decision point supporting the focus on climate action as a critical priority guiding municipal policy, investment, and operations. This annual climate change progress report provides a status update on the implementation of climate action plans endorsed by Regional Council. 1.2 Section 2 of this report provides an update on the Durham Community Energy Plan (DCEP). The DCEP was endorsed in principle by Regional Council and local area municipal councils in 2019 and outlines Durham’s pathway to reduce greenhouse gas (GHG) emissions and facilitate the transition towards a clean energy economy through collaboration between the Region, local area municipalities, energy utilities, and other community stakeholders. Page 9 Report #2024-COW-12 Page 2 of 24 1.3 Section 3 of this report provides an update on the Durham Region Corporate Climate Action Plan (CCAP). The CCAP was endorsed by Regional Council in 2021 (Report #2021-A-3) and provides a framework for corporate decarbonization, including GHG reduction targets, and integration of a climate lens into the Region’s business planning and budgets process. The CCAP was developed in collaboration with internal departments and operating divisions. 1.4 Section 4 of this report provides an update on the Durham Community Climate Adaptation Plan (DCCAP). DCCAP was endorsed by Regional Council in 2016 (Report #2016-COW-103) and sets out a vision, goals, and actions to help Durham Region adapt to climate change impacts. This plan was developed in collaboration between the Region, local municipalities, Conservation Authorities, energy utilities, and other local stakeholders. 1.5 This is the fourth such annual climate progress report since Regional Council’s 2020 climate emergency declaration. Previous annual climate update reports can be found on the Region’s website. 2. Durham Community Energy Plan (DCEP) Update 2.1 Durham Region community-wide carbon emissions inventory update: a. In late 2023, The Atmospheric Fund (TAF) published its annual carbon emissions inventory report for the Greater Toronto and Hamilton Area (GTHA). The report covered 2022 carbon emissions data across the four regional municipalities (Halton, Peel, York, and Durham) and single tier municipalities (Hamilton and Toronto) that make up the GTHA. TAF estimated that GTHA emissions increased annually by 8 per cent in 2022, which was the largest annual increase since 2015. Emissions increased across all six jurisdictions covered by the report, ranging from 5 per cent in Hamilton to 12 per cent in Halton Region. Carbon emissions in the GTHA will need to decrease by 9 per cent annually to reach 2030 targets in line with achieving net zero emissions by 2050. b. Durham Region’s emissions, as reported by TAF, and based on total activity within Durham’s geographic boundaries, increased by 8 per cent in 2022 to 5.9 million tones of carbon dioxide equivalent (TCO2e), nearly reaching pre-pandemic levels (see Figure 2 below). The transportation sector was the biggest driver for this increase, up 9 per cent, and continues to be the largest source of GHG emissions overall in Durham Region (see Figure 2: Durham Region Total Community Emissions, 2017-2022 (MtCO2e) c. below). The report acknowledges that most of the GTHA's agricultural activity is concentrated in Durham, making up 3 per cent of Durham’s total emissions, and that food grown in Durham is consumed by communities across Ontario and beyond. Page 10 Report #2024-COW-12 Page 3 of 24 Figure 1: 2022 Durham Community GHG Emissions by Sector (MtCO2e) Figure 2: Durham Region Total Community Emissions, 2017-2022 (MtCO2e) Page 11 Report #2024-COW-12 Page 4 of 24 2.2 The Region continues to support the implementation of the DCEP in partnership with local area municipalities, energy utilities, and other organizations with influence over energy use and emissions in the community. Updates across key areas of the DCEP low carbon pathway are provided below. 2.3 Existing Home Energy Retrofits a. DCEP called for deep energy retrofits across all the roughly 200,000 existing single-family homes in Durham Region to align with a low carbon pathway to 2050. Achieving this goal requires a tripling of the rate of home energy retrofits, with each retrofit including both envelope upgrades (e.g., insulation) as well as upgrades to heating and cooling systems (e.g., switching from natural gas furnaces to electric air source heat pumps). b. The Durham Greener Homes (DGH) program was launched in April 2022 to provide residents with a comprehensive voluntary residential retrofit program to achieve energy efficiency upgrades and deep energy retrofits. The program includes expert energy coaching services, tailored incentives, and third-party financing services. c. To date, more than 1,000 Durham Region homes have registered to participate in the DGH program, and of those, close to 100 homes have completed a deep energy retrofit. In April 2024, the DGH program will be enhanced with the launch of a virtual home energy audit tool (VHEAT) that will enable insights into the energy performance of all 200,000 homes across Durham Region. The Region is working with its contracted program administrator, Windfall Ecology Centre, to implement a direct marketing campaign to invite homeowners to register through the secure DGH portal to access their VHEAT report and begin their retrofit journey. This will be supported by tailored incentives administered by the Region with the support of FCM Community Efficiency Financing Program grant funding. d. As outlined in Section 4.4 below, Regional staff are also working to develop an enhancement to the DGH program that will focus on supporting homeowners with implementing climate resilience retrofits that can address risks associated with flooding and extreme heat impacts. A full update to Council on the DGH program, including planned enhancement, is expected in Q2 2024. 2.4 Existing Building Retrofits – Industrial, Commercial, Institutional, and Multi- Unit Residential Buildings. a. In addition to single family homes, DCEP’s low carbon pathway includes deep retrofits in all existing industrial, commercial, institutional, and multi- unit residential buildings in the Region. Page 12 Report #2024-COW-12 Page 5 of 24 b. The Durham Greener Buildings (DGB) program launched in January 2024 to support building owners and managers in complying with the Province of Ontario’s Energy and Water Reporting and Benchmarking (EWRB) Initiative. The program seeks to build capacity around benchmarking by providing a Help Desk and training support services to build familiarity, among building owners with Energy Star Portfolio Manager (ESPM), and in turn, drive demand for energy efficiency improvements throughout the building sector. c. The Durham Greener Buildings program complements and expands on the Durham Greener Homes program and will include a focus on supporting benchmarking and disclosing energy and water usage data of municipally owned buildings to showcase local government leadership in addressing climate change. Additionally, the program facilitates compliance with Broader Public Sector (BPS) reporting requirements. In subsequent steps, staff will explore financing and funding opportunities while collaborating with partners to facilitate deep energy building retrofits. For further program details, please refer to report #2023-COW-16. 2.5 New Construction – Durham Green Development Program a. Given expected population growth in Durham Region, and the associated need to build thousands of new homes annually over the coming decades, the DCEP identifies high energy performance in new building construction as a critical piece of Durham’s low carbon pathway. Specifically, the DCEP calls for local municipalities to implement a tiered set of energy and emissions performance standards through the planning approval process, with the first tier mandatory and upper tiers of energy and emissions performance standards voluntary, supported by incentives. b. Local area municipalities, including Town of Whitby, City of Pickering, and Town of Ajax (the municipalities), have implemented green development standards since the DCEP was endorsed. These standards include a tiered set of energy and emissions performance criteria. c. While the provincial government’s Bill 23 initially appeared to limit the ability of municipalities to implement green development standards, subsequent amendments as outlined in a Letter from the former Minister of Municipal Affairs and Housing, Steve Clark, recognize the important work being done by municipalities through green development standards. The Minister’s letter further articulated that the Province intends to consult with municipalities and other stakeholders on a consistent province-wide approach for municipalities wanting to implement green building standards that are above the minimum requirements in the Ontario Building Code (OBC) although to date, such consultations have not yet occurred. Page 13 Report #2024-COW-12 Page 6 of 24 d. As part of the implementation of the Pan Canadian Framework on Clean Growth and Climate Change, the federal government has moved forward with a National Building Code that includes energy performance tiers that are designed to move the building industry to net zero by 2030. As part of the code harmonization process, the Province of Ontario is updating the OBC to align with National Codes. There is an emerging need for market transformation to align with the tiered approach. e. The Region has focused on industry training and capacity building initiatives in collaboration with the Durham Region Home Builders’ Association (DRHBA), and Natural Resources Canada’s (NRCan) Local Energy Efficiency Partnerships (LEEP) team. Together with DRHBA and LEEP, the Region hosted a series of technology forums for builders and developers that are focused on high performance new construction. These sessions are continuing into Q2 2024. f. In 2023, Regional staff began working to develop a Green Development Program with an aim of: • building alignment amongst local municipal green development standards the new national model energy code tiers, and with forthcoming changes to the OBC; and • supporting voluntary adoption of higher energy performance tiers. g. The program development process has included evaluating policy tools to enhance energy performance and reduce GHG emissions in new residential construction, and collaboration with local municipalities and cross-departmental municipal staff teams, including Finance and Planning. Staff have consulted with energy utilities and building industry stakeholders through focus group sessions. Staff anticipate bringing forward a comprehensive program proposal to Regional Council in mid-2024. 2.6 Low Carbon Thermal Networks – Sewer Heat Recovery/District Heating. a. The DCEP identifies district energy (DE) as a key strategy for building sector decarbonization in Durham Region, which can potentially contribute more than 15 percent of GHG emissions reductions to meet the 2050 target. b. Exploration of DE opportunities have initially focused on Courtice given the availability of heat from the Durham York Energy Centre (DYEC) and the planned high population and employment densities around the Courtice GO Station Major Transit Station Area (MTSA). A preliminary business case analysis was developed in 2023, and presented to Council in January 2024 in Report #2024-COW-1. Following Council endorsement in principle of the DES project concept for the Courtice Transit-Oriented Community (CTOC), staff are evaluating service delivery model options for the Courtice district Page 14 Report #2024-COW-12 Page 7 of 24 energy system, as well as updating the preliminary business case. A report outlining the recommended next steps is expected to be presented to Council in Q3 2024. c. In addition to work to evaluate district energy in Courtice, the Region is working with Brookfield Residential and energy developer Creative Energy to determine the feasibility of utilizing thermal energy from the Region’s sanitary sewer system to meet most of the space heating and cooling requirements of the Dockside Development in the Port of Whitby. Staff are currently undertaking the final round of consultations and will develop the required Memorandum-of-Understanding (MOU) and the necessary agreements. For further details, please refer to report #2022-INFO-16. d. Staff will initiate an assessment of DE opportunities across strategic growth areas outlined in the Regional Official Plan as part of an overarching, comprehensive thermal energy demand mapping effort for the Region, in collaboration with local area municipalities and energy utilities. e. Given the relatively new nature of DE work in Durham Region, the projects will help inform the development of future policies, standard agreements, and protocols to support the pre-screening, review and approval of district energy and waste energy transfer projects. 2.7 Electric Vehicle Adoption a. The DCEP points to the transportation sector as a key area of focus, where electric vehicle (EV) adoption to reduce gasoline and diesel fuel use, will help to drive GHG reductions across Durham. As part of a multi-faceted approach to encourage the uptake of EVs across Durham, the Region, in collaboration with local municipalities and other public sector organizations have proceeded with the implementation of EV charging stations to support public and corporate fleet charging activities. b. To date, the Region has led on four collaborative proposals to NRCan for funding under the Zero Emissions Vehicle Infrastructure Program (ZEVIP) to support the implementation of EV chargers. Collaborative applications have been developed in partnership with local area municipalities, the Durham Catholic District School Board (DCDSB), Trent University Durham GTA, Oshawa Power and Utilities Corporation, and Central Lake Ontario Conservation Authority (CLOCA). In total, the Region secured $ 2.7 million in approved grant funding to cover up to 50 per cent of eligible project costs related to the implementation of over 360 EV chargers to support public charging and corporate fleet applications. c. The installation of EV charging infrastructure plays a key role in stimulating consumer demand for EVs. In 2022, Durham experienced a surge in EV purchases compared to 2021, with 3,707 EVs (an increase of 80 per cent Page 15 Report #2024-COW-12 Page 8 of 24 over 2021) and 1,402 plug-in hybrid vehicles (PHEVs) (an increase of 34 per cent over 2021). 2.8 Public and Active Transportation a. Low carbon mobility options such as public and active transit are important for aligning community-wide carbon reduction outcomes with other priorities like community health, well-being and cost-of-living. As shown in Figure 3 below, the automobile remains the dominant form of transportation in Durham Region representing close to 90 per cent of total trips taken in 2022 (the latest year for which data is available). Auto mode share increased over the period from 2019 to 2022, with a commensurate decline in the share of trips taken by public transit and active modes. Transit did show an increase between 2021 and 2022, reflecting resumption of normal services from the COVID pandemic. Figure 3: Durham Region – Percentage of total trips per mode1 b. The Region has a critical role to play in enabling low carbon mobility through public transit service, and through investment in active transportation infrastructure through the Regional Cycling Plan, including strengthening its Transportation Demand Management (TDM) offerings and policies under its Smart Mobility Durham program. 1 Source: Google Environmental Insights Explorer – Transportation Activity Data for the Regional Municipality of Durham. Available here: https://insights.sustainability.google/places/ChIJNWdhlINO1YkR3unhOZ62X88?hl=en-US&ty=2022 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2019 2020 2021 2022 Automobile Public Transit Active Transit Page 16 Report #2024-COW-12 Page 9 of 24 c. In the fall of 2023, Durham Region Transit (DRT) saw record ridership levels which exceeded pre-pandemic levels. This was achieved despite a lower overall amount of service hours delivered by DRT in 2023 as compared to 2022 (~roughly 480,000 service hours in 2023 vs close to 590,000 service hours in 2022). Section 3.6a below provides additional information on planned investment to support increased transit service alongside bus fleet electrification. d. Through implementation of the Regional Cycling Plan (RCP) the Region continues to advance the installation of new cycling infrastructure. Since the adoption of the 2021 RCP, the Region has built approximately 52 kilometres (km) of cycling infrastructure for a total of approximately 121 km of regional cycling facilities. The 2024 budget approved funding for the construction of approximately 19 km of cycling infrastructure to be implemented as part of Regional Roads construction projects and $0.9 million to advance shovel-readiness of cycling network infill projects. 2.9 Climate Governance and Public Reporting a. In addition to taking critical steps in advancing climate initiatives, the Region also undertook efforts to enhance community advisory capacity, and public facing communications on progress, as outlined below. b. Durham Climate Roundtable (DCR) – In 2023, the Durham Region Roundtable on Climate Change (DRRCC) advisory committee was integrated with the Durham Environmental Advisory Committee (DEAC), and a new arms-length Durham Climate Roundtable (DCR) was created, coordinated by Ontario Tech University. The DCR serves as a leadership accelerator, with membership representing diverse sectors across Durham Region, including regional and local government, corporate entities, and community organizations. The objectives of the DCR include providing advice to the Region of Durham on climate change matters and conducting climate change awareness and outreach activities. DCR member responsibilities include reviewing the annual DCR Report, participating in an annual Climate Forum, endorsing identified priorities for action by implementation teams, and acting as champions for climate action priorities within respective organizations, networks, and communities. For further details, please refer to report #2022-COW-28. c. Annual Durham Climate Forum - the Durham Climate Roundtable (DCR) hosted the inaugural Durham Environment and Climate Forum on November 14th, 2023. The event showcased progress on climate action and celebrated the accomplishments of environment and climate change leaders across Durham Region. Staff are working with the Brilliant Energy Institute (BEI) and Ontario Tech University to deliver the upcoming annual climate forum, scheduled for fall 2024. Page 17 Report #2024-COW-12 Page 10 of 24 d. Durham Climate Dashboard - The Durham Climate Dashboard, formally launching later in April 2024, is an online platform designed to monitor the DCEP’s progress in achieving the Region’s climate targets. The dashboard displays local energy and emissions data and enables community members to see the progress and impact of climate action initiatives undertaken by the Region and area municipalities, and visually track the outcomes and impact of these actions. 3. Durham Region Corporate Climate Action Plan Update – Leading by Example 3.1 Regional Council approved the Corporate Climate Action Plan (CCAP) in 2021 in support of municipal leadership in the community-wide transition to net zero and climate resilience. Key elements of the CCAP include GHG emission reduction targets for Regional operations, and a system to track, forecast and report progress annually against those targets to senior leadership and Regional Council. • 20 per cent GHG emissions reduction by 2025, below 2019 levels, • 40 per cent GHG emissions reduction by 2030, below 2019 levels, and • 100 per cent GHG emissions reduction by 2045, below 2019 levels. 3.2 Durham Region corporate GHG emissions inventory update: a. Durham Region’s corporate emissions include energy consumption in regional buildings, vehicles, and infrastructure (e.g. water, wastewater, and solid waste management), as well as non-energy GHG emissions associated with the Region’s solid waste management (closed landfill and DYEC emissions) and wastewater operations (process fugitive emissions). b. Based on preliminary estimates, 2023 corporate GHG emissions were approximately 178,000 tonnes (tCO2e, rounded), which represents a 1 per cent decrease from 2022 totals. Non-energy related emissions in solid waste management and wastewater treatment operations continue to represent the largest share of total corporate emissions. c. For other corporate operating areas, GHG emissions are largely associated with fossil fuel consumption in fleets from gasoline and diesel fuel whereas GHG emissions in corporate buildings are largely related to natural gas use for space and water heating in buildings. Energy-specific emissions for which the Region is directly responsible for billing was approximately 27 per cent of the corporate totals (based on 2023 estimates and net of the York Region estimated share of Duffin Creek WPCP). Page 18 Report #2024-COW-12 Page 11 of 24 Figure 4: Corporate GHG Emissions by Operational Area for 2023 (Preliminary Estimate) 3.3 Progress in implementing the CCAP and aligning with Council-endorsed GHG reduction targets have been hindered by the extraordinary challenges facing the Region through the COVID-19 pandemic, ongoing supply chain constraints, and inflationary economic conditions. The Province of Ontario’s Bill 23, passed in November 2022, added to these fiscal challenges through sweeping changes to regional land use planning and municipal financing that will place a greater burden on existing property taxpayers and ratepayers to cover the cost of future infrastructure for new community areas. In addition, the Region’s corporate emissions profile includes complex emissions sources in solid waste management and wastewater treatment for which technology options are currently limited. 3.4 Figure 5 provides a projection of anticipated GHG reductions over the forecast period based on information contained within departmental 10-year capital plans. Based on current information and assumptions, large shares of the reductions are expected to be realized through fleet operations, including the planned electrification of transit service and through the natural decline of methane generation in closed landfills. As reported in 2022, there remains a significant gap between forecasted emissions, and Council endorsed corporate GHG reduction targets. As the findings and recommendations of the GHG Emission Reduction Pathways studies and Water & Wastewater GHG Management Strategy are developed and finalized, forecast estimates will be updated. Water & Sanitary Sewer: Energy Related 5%Corporate Buildings and Traffic Signals 7% Water & Sanitary Sewer: Non-Energy Related 16% Vehicle Fleets 15% Solid Waste Landfills 21% Durham York Energy Centre 36% Page 19 Report #2024-COW-12 Page 12 of 24 Figure 5: Durham Region Total Corporate Emissions, 2019 to 2023 (Estimated) (MtCO2e) 3.5 Corporate Buildings a. Corporate buildings (owned and leased facilities, excluding water and sanitary sewer vertical infrastructure) and Regional traffic signals represent seven per cent of total corporate GHG emissions, but a much larger share of the energy-related emissions at just over 25 per cent. With buildings representing the second largest source of emissions community-wide, Regional action in this area is important to demonstrate corporate leadership. Furthermore, with Regional buildings often providing front line services to vulnerable residents (e.g. long-term care homes, childcare centers, and social housing), investments to support climate resilience are critical. b. With the adoption of the Durham Standard in April 2023, all Regionally- owned and operated buildings will be constructed, renovated, retrofitted or expanded to a corporately approved building standard that aligns with the Strategic Plan and CCAP. Specific to corporate climate action, the Durham Standard sets a zero GHG design target and mandates that there is no on- site combustion of fossil fuels (excluding backup power fuel requirements). c. The Region has a number of corporate decarbonization projects underway: • Traffic Operations /Health Protection at 101 Consumers Dr. (Whitby): deep retrofit will lead to the phase out of on-site fossil fuel consumption. • Durham Region Local Housing Corporation (DRLHC) deep retrofits at 155 King St. E. (Oshawa) and 655 Harwood Ave. S (Ajax): include - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 2019 2020 2021 2022 2023 (Est.)2025 Fcst 2025 Target 2030 Fcst 2030 Target 2035 Fcst 2045 TargetTCO2E Durham York Energy Centre Solid Waste Landfills Water & Sanitary Sewer: Energy Related Corporate Buildings and Traffic Signals Water & Sanitary Sewer: Non- Energy Related Vehicle Fleets 20% below 2019 Baseline 40% below 2019 Baseline 100% below 2019 Baseline Page 20 Report #2024-COW-12 Page 13 of 24 improved building envelopes and upgrades to building heating, cooling, and ventilation systems. • Seaton Region of Durham Paramedic Services (RDPS) Station and Training Facility (Pickering): includes a geothermal system that will provide heating and cooling for the building and a solar photovoltaic (PV) system that will contribute to making this a zero-carbon building. This new build project is expected to be completed by the year end 2024. • Beaverton Transitional Supportive Housing Facility (Brock): all electric building systems and a rooftop solar PV system which will offset approximately 50 per cent of the building’s electrical consumption. • Seaton Long Term Care (Pickering): is the first new building to be designed following adoption of the Durham Standard. As outlined in Report #2023-COW-34, the building will be 25 percent more efficient than OBC and future upgrades will be required to retrofit the building to meet the Region’s target of net zero by 2045. • Clarington Police Complex Phase 2 (Clarington): is currently under construction and designed to include a geothermal field for heating and cooling. With DRPS requiring emergency redundancy for operations, natural gas will remain on site as a backup system. • DRT Thornton Rd. Transit Maintenance Facility (Oshawa): this project is in the early design phase with a goal of net zero GHG emissions. Design and issuance of the tender is planned for fall 2024, with construction beginning in early 2025 subject to the federal government’s approval of the Regional funding application under the Zero Emissions Transit Fund. d. In addition to retrofit projects underway, staff are advancing the development of GHG Emission Reduction Pathways studies for all Regional buildings. Once complete at the end of 2024, measures recommended through these studies will be integrated into the 10-year capital plan and implemented through the annual budget process. 3.6 Corporate Fleet a. Corporate fleet vehicles made up 15 per cent of overall corporate emissions in 2023 but more than half of energy-related emissions. With transportation representing the largest share of community wide emissions (see Figure 1), action to reduce its fleet GHG emissions can serve as a leadership example for other public and private sector organizations. Page 21 Report #2024-COW-12 Page 14 of 24 b. Regional investment to enhance public transit service can increase corporate GHG emissions in absolute terms while significantly reducing community-based emissions (e.g., growth of corporate transit fleet assisting in reducing passenger vehicle travel). • In February 2023, Council approved Durham Region Transit’s 2023- 2032 Transit Service and Financing Strategy (Report #2023-DRT-05) which outlines an unprecedented 10-year investment in DRT services, including a 127 percent increase in revenue services, significant capital investments to implement the DRT Fleet Electrification Plan, and priorities for infrastructure, accessibility, and passenger amenities. The 2024 budget includes an increase of 59,665 revenue service hours, bringing total service to 569,876 hours of conventional service and 174,692 hours of On Demand service. • DRT’s first six battery electric buses are scheduled to be delivered in April 2024, and the bus fleet is anticipated to be fully electric by 2037. The 2024 budget includes the acquisition of 34 electric buses and supporting electrification infrastructure (pending federal funding approval). DRT’s commitment to increasing revenue service hours and fleet electrification represents one of the most significant contributions the Region is making towards both community-wide and corporate decarbonization. c. In April 2023, Regional Council adopted a Light Duty Fleet Electrification Plan which outlines preliminary target years for 100 per cent electrification by fleet group. Figure 6 provides an update on the current state of light duty vehicle electrification across fleet groups, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEV), hybrid electric vehicles (hybrid) and internal combustion engine vehicles (ICEVs). The 2024 budget includes investments of $4.1 million for BEVs, PHEVs and hybrid vehicles in the Works and DRPS fleets. Page 22 Report #2024-COW-12 Page 15 of 24 Figure 6: Light Duty Fleet Electrification Plan - 2021 Baseline, 2023 Actual, Targets d. Staff are investigating the opportunity to pilot the use of renewable diesel as a seasonal diesel alternative for medium- and heavy-duty fleet during non- winter periods. A Request-for-Information (RFI) was undertaken by staff in the fall 2023 to assess market opportunities and understand the range of product offerings from various vendors, as well as associated environmental benefits and potential operating implications. Renewable diesel is a cleaner, green fuel, which could reduce the GHG emissions from summer diesel by 60 per cent or more (on a lifecycle basis). Potential cost implications continue to be assessed considering product price premiums, potential exemptions on applicable carbon fuel surcharges, and investments in the Region’s fleet electrification plans. 3.7 Solid Waste Management. a. This source of emissions is related to the management of residential solid waste on behalf of a growing region of more than 250,000 households. Solid waste management makes up 57 per cent of corporate emissions, with DYEC contributing 36 per cent and closed Regional landfills contributing 21 per cent. Solid waste emissions are estimated to have declined by close to 2 per cent in 2023 due to a decrease in methane production at the Region’s closed legacy landfills (DYEC held constant from 2022 values). 2021 Baseline 2023 Actuals 2032 Target 2021 Baseline 2023 Actuals 2030 Target 2021 Baseline 2023 Actuals 2042 Target 2021 Baseline 2023 Actuals 2032 Target DRT Paramedics Police Works BEV 0%0%100%0%0%23%0%1%34%0%0%22% PHEV 0%33%0%0%0%77%0%0%66%10%15%78% Hybrid 0%0%0%0%0%0%16%21%0%0%0%0% ICEV 100%67%0%100%100%0%84%78%0%92%85%0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ICEV Hybrid PHEV BEV Page 23 Report #2024-COW-12 Page 16 of 24 b. Following Regional Council’s decision to pause the procurement process for the Mixed-Waste Pre-Sort and Anaerobic Digestion (AD) Project in June 2022, staff developed an Organics Management Plan that was endorsed by Council in March 2023 (Report #2023-WR-3). The next steps to move the Region’s organics management plan forward comprise of short- and long- term processes. The short-term process provides operational continuity by securing third-party organics processing capacity at a suitable AD facility beyond the end date of the current organics processing contract of June 30, 2024. The long-term process focuses on the future viability of the Region’s AD Project. Regional staff will monitor the performance of the short-term organics management plan and adjust the long-term organics management plan requirements as appropriate. c. In October 2023, a biocover pilot project at the closed Oshawa landfill site was launched to determine if it can be an effective methane reduction method for closed landfill sites in the Region. The feasibility study estimates that a biocover could reduce methane emissions by up to 50 per cent and preliminary findings are promising. The pilot project will continue until March 2025, after which staff will determine whether the project warrants expansion. 3.8 Water and Wastewater a. Water and wastewater operations make up 21 per cent of total corporate emissions in 2023. This source of energy and non-energy emissions is related to the treatment, storage, and pumping of drinking water and wastewater for the benefit of residents, businesses, and institutions across the Region. Combined, water and wastewater produced approximately 37,200 tCO2e (rounded), largely relating to wastewater treatment operations (mainly biosolids incineration at Duffin Creek WPCP, fugitive wastewater emissions and natural gas usage). b. In 2023, the Works Department initiated the development of a Water and Wastewater GHG Emission Management Strategy to provide a roadmap towards decarbonization across the Region’s water and sanitary sewer treatment plants, storage facilities and pumping stations. Work to finalize the Strategy is underway, and is anticipated to be presented to Council in Q2 2024 with identified decarbonization measures incorporated into the 2025 business planning and budgets process, including the 2025-2034 ten year capital plan. The Strategy will identify measures such as renewable natural gas (RNG) generation from wastewater treatment plants, and thermal heat recovery from the Region’s sewer network as key opportunities to align corporate leadership with community-wide decarbonization objectives. c. The Strategy will also make recommendations for inclusion of additional emissions within the Region’s corporate emissions inventory, mainly related Page 24 Report #2024-COW-12 Page 17 of 24 to Regional wastewater process emissions not currently quantified and reported. It is expected that the Region’s emissions reporting protocols and boundaries for GHG reporting will be expanded for the 2025 CCAP update to include these additional emission sources. 4. Durham Community Climate Adaptation Plan (DCCAP) Update – Towards Resilience 4.1 This section provides an update on climate adaptation and resilience measures, and highlights implementation progress, by sector, on the proposed programs recommended in the DCCAP approved by Council in 2016. 4.2 In 2020, the Region updated its future climate projections using the most up-to- date climate information. This updated climate modelling indicates that the climate change impacts already being felt will become more intense and severe over the coming decades. 4.3 Cross-Sector – Recommended Programs to increase climate resilience and action across departments and sectors and strengthen social cohesion in communities. a. CS1: Protect Our Outside Workers – Durham Region approved a Heat Stress – Occupational Health and Safety Directive in 2023 to ensure protective procedures are in place to reduce the hazard of heat stress to all Region of Durham employees who work in high temperature environments. b. CS2: Social Infrastructure for Emergency Resilience – Several local area municipalities have or are developing cross-sector adaptation and resilience plans to identify and address local climate risks and vulnerabilities, including: • City of Pickering (in development), • Town of Ajax, • Town of Whitby, and; • Municipality of Clarington. c. Other initiatives to support community resilience and cross-sector climate action have been initiated including: • Climate Resiliency: A Resident’s Guide developed by Durham Environment and Climate Advisory Committee (DECAC), • Sustainable Neighbourhood Action Program (SNAP) in Ajax and Whitby, and Page 25 Report #2024-COW-12 Page 18 of 24 • Planning for a new Toronto and Region Conservation Authority (TRCA) Climate Ready Towers program for multi-unit residential buildings. d. Corporate Resilience – The Region and local area municipalities are required to develop corporate asset management plans and reports which include reporting of risk and climate change adaptation and mitigation initiatives. Integration of climate adaptation into infrastructure design and operations occurs on a divisional basis. The Region is currently developing a Sustainable Infrastructure Design Policy and Standard in alignment with Strategic Plan goals and values, providing a tool to operationalize sustainability into Transportation, Water and Wastewater, and Waste infrastructure projects and facilities. Staff expect to present an overview of a draft policy and example standard to Council for information later in 2024. 4.4 Building Sector – Recommended programs to improve resilience of new and existing buildings to future climate conditions, through development standards and adaptation retrofits. a. B1: The Durham Climate Resilience Standards for New Buildings –, The Region and several local area municipalities have approved new standards incorporating climate resilience into new construction. In 2023, Durham Council approved the Durham Standard – A Standard for Regional Municipality of Durham Facility Construction and Renovation Projects requiring measures for asset resiliency, circular economy, water efficiency and ecology. Town of Ajax, City of Pickering, Town of Whitby, and Municipality of Clarington have Green Development Standards approved or under development that promote cool roofs, natural heritage and urban forest, stormwater management, renewable energy, and greenspace protection. The Conservation Authorities have also developed technical and engineering guidelines for stormwater management, guided by provincial requirements. b. B2: Building Retrofit for Climate Resilience – The Region is working to expand the Durham Greener Homes (DGH) program (described above in Section 2.3) to include resilience measures such as basement flood mitigation, stormwater management and sustainable landscapes. This program will cross-promote emergency preparedness and heat protection programs. Staff expect to bring a proposed program update that includes resilience measures to Council for review and approval later in 2024. 4.5 Flooding Sector – Recommended programs to proactively reduce urban and riverine flooding risk, severity, frequency, and impact. a. F1: Address Urban Flooding – Page 26 Report #2024-COW-12 Page 19 of 24 • There have been several urban flooding and stormwater related assessments and projects led by the local area municipalities, for example Whitby Bridge and Culvert Master Plan, and Uxbridge Stormwater Management Master Plan. • Following a Stormwater Management Funding Feasibility Study, the Town of Ajax introduced a Stormwater Fee and Credit Program in 2023 to support funding for the Town’s stormwater management program, including system maintenance and rehabilitation. • There are also examples of low impact development (LID) implementation projects across the Region at public facilities, within municipal rights-of-way, and at demonstration sites, for example at Ontario Tech University’s North Oshawa Campus, and Ajax Lakeshore Rain Gardens, and permeable parking installations. • In Q2 2023, Durham Region launched Flood Ready Durham, an information and resource hub about flood risk and resilience in the community. The website helps residents learn about their flood risk level, different types of flooding, and offers guides and other resources to help get flood ready and know who to call if flooding occurs. b. F2: Redefine Flood Hazards to Consider Climate Change & F4: Address Riverine Flooding – Durham conservation authorities have led several initiatives including updated floodplain mapping for Durham’s watersheds including analysis of future climate change scenarios (e.g., TRCA Duffin’s Creek, GRCA Lovekin, Bouchette Point, Port Granby Creeks, Wilmot, Graham Creek), watershed flood studies and management plans (e.g., Lynde Creek, Krosno Creek) and dike rehabilitation projects (e.g., Ajax). c. F3: Improve Flood Forecasting, Warning and Emergency Response – Conservation authorities continue to provide flood forecasting, flood status indicators, and flood warnings to municipalities and the broader community. Updated flood modelling developed through studies such as the Region’s Flood Vulnerable Road and Crossing Hydraulic Capacity Assessment (outlined below in Road Sector), provide information for emergency planning. Where possible, local area municipalities together with other municipalities, conservation authorities, and Ministry of Natural Resources and Forestry develop annual Flood Contingency Plans and Flood Preparedness Guides (e.g., Clarington Flood Preparedness Guide). Area specific plans have also been developed, including Town of Ajax Lower Carruthers Site Specific Emergency Response Plan. Page 27 Report #2024-COW-12 Page 20 of 24 4.6 Human Health Sector – Recommended programs to reduce health risks associated with extreme heat through advanced warning, protective measures for vulnerable residents, and reduced ambient summer temperatures. a. HH1: Extreme Weather Alert and Response (EWAR) System – In 2016, Durham’s Health Protection division launched Durham Region’s Heat Warning and Information System (HWIS), which provides advance notice of extreme heat conditions to municipalities, community partners and the public so that heat response plans can be activated in advance of extreme heat. b. HH3: “Cool Durham” Heat Reduction Program - In 2018, Durham developed Keeping Our Cool - Urban Heat Strategy providing an overview of urban heat island causes, impacts, high risk areas in Durham, and recommended reduction measures. The Durham Region Standard (refer to Section 3.5) and local area municipal green building standards (see Section 2.5) integrate measures to encourage cooling of buildings as part of new construction or major renovation. Efforts to reduce urban heat have also been considered in local area municipal initiatives such as parks and recreation plans, urban forest initiatives, and Sustainable Neighbourhood Action Program (SNAP) in Ajax and Whitby. c. Durham Region Health Department (DRHD) is currently developing a region-wide Climate Change and Health Vulnerability Assessment to examine the health-related impacts of climate change. These include extreme heat, extreme weather, vector-borne diseases (e.g., tick-borne diseases and West Nile virus) access and quality of food and water, poor air quality, and ultraviolet radiation. 4.7 Road Sector – Recommended programs to improve road performance and resilience to extreme heat and rain events and protect from washouts at stream crossings. a. R1 Resilient Asphalt Program – Heat resilient asphalt standards are now available. Climate-related increases in heat will be monitored and implemented when warranted. b. R2: Road Embankment Program – The Region has led several successful pilots to address the impacts of extreme storm events on road embankments, with lessons applied to new projects where application is warranted. c. R3: Adaptive Culverts and Bridges – Durham Region worked with TRCA in 2022 to develop a Flood Vulnerable Road and Crossing Hydraulic Capacity Assessment, identifying roads most vulnerable to flooding and recommendations to prepare for more frequent and intense rainstorms. This work informs asset management, disaster route planning, and Page 28 Report #2024-COW-12 Page 21 of 24 prioritizing future investments. CLOCA completed a similar study in 2023, and planning is underway for GRCA to undertake this work in 2024. All risk assessment results will be made available to regional staff through Durham’s GIS mapping. d. Durham Maintenance Operations – Roads and Facilities staff successfully secured funding from Canadian Wildlife Federation (CWF) to lead a pilot to implement pollinator gardens along two regional roads and at regional depot facilities. The process and outcomes will be monitored and may help inform a broader strategy for pollinator plantings along strategic regional roads and facilities on a larger scale. This work is supported by the Council- endorsed DECAC motion regarding programming to support pollinators on Regional facilities and along Regional Rights-of-Way to support natural habitats and restoration. 4.8 Natural Environment Sector – Recommended programs to enhance natural capital and build climate resilience in the natural environment. a. NE1: Achieving Climate Change Resilience in the Natural Environment • In 2022, a TRCA Durham Natural System Climate Change Vulnerability Assessment was developed to identify natural system vulnerability to future climate conditions, helping inform Durham Region’s Natural Heritage System (NHS) science, policy, and planning. • Recent watershed planning is incorporating climate change scenarios into the process (i.e., TRCA Carruthers Creek Watershed Plan), and some conservation authorities are developing climate adaptation strategies (i.e., LSRCA). • Protection and natural system resilience continues to be supported by local area municipalities and conservation authority’s securement of environmentally sensitive land, ecological restoration and management projects, neighbourhood, or project-scale nature-based initiatives. The Town of Ajax has recently developed an Urban Forest Study, Invasive Species Awareness Program, and Invasive Phragmites Strategic Management Plan which will inform other local area municipality approaches. • New ecosystem services tools have been developed including TRCA, Credit Valley Conservation (CVC), and LSRCA’s Natural Asset Carbon Assessment Guide and Toolbox in 2022, developed to estimate green infrastructure carbon sequestration and storage . Oshawa’s Municipal Natural Assets Initiative was initiated to understand and increase resilience of natural assets along the Oshawa Creek. TRCA’s Nature-Based Climate Solutions Siting Tool Page 29 Report #2024-COW-12 Page 22 of 24 was developed in 2023 to identify strategic locations for green infrastructure and co-benefits, and can be applied outside TRCA jurisdiction. • In 2022, Durham Region and its five conservation authorities launched Durham TREES, a subsidized rural tree-planting program resulting in 218,000 trees planted in two (2) years. Planning is underway for a second phase, as well as a partnership with Trees for Life to support the Federal government’s 2 Billion Trees program across the Region. • Since 2020, the Region and local area municipalities have partnered with LEAF (Local Enhancement and Appreciation of Forests) to plant over 1,300 native trees and shrubs. The LEAF planting program offers a subsidized rate through the Backyard Tree Planting Program for residents, multi-unit property owners, and commercial property owners in participating municipalities. 4.9 Food Security Sector – Recommended programs to address climate adaptation in the commercial agriculture and food supply sectors. a. FS1: Convene Commercial Agriculture Task Force – Following the approval of the Durham Community Climate Adaptation Plan in 2016, two addenda were developed to support development of climate adaptation strategies in the commercial agriculture and food supply sectors. In 2019 Growing Resilience - A Durham Agriculture Sector Climate Adaptation Strategy was developed by the Agricultural Sector Expert Task Force, identifying risks to the local agricultural sector and adaptation opportunities. In 2021, Inspiring Next Steps - A Summary of Durham Region’s Food Security Task Force was developed summarizing climate change impact on residents’ food access, the results of several food security initiatives and key recommendations on food security. b. In 2024, the Durham Food Policy Council published the first Durham Food System Report Card, evaluating a range of local food system indicators including food access, production, farmland protection, waste, education and literacy, Indigenous food sovereignty, cultural connections to food, and farmers and food system worker welfare. This report card and the above noted strategies support the objectives of the citizen-led Durham Food Charter developed in 2009. 5. Relationship to Strategic Plan 5.1 This report aligns with the following strategic goals and priorities in the Durham Region Strategic Plan: a. Goal #1 – Environmental Sustainability Page 30 Report #2024-COW-12 Page 23 of 24 • Goal 1.1 - Accelerate the adoption of green technologies and clean energy solutions through strategic partnerships and investment; • Goal 1.4 - Demonstrate leadership in sustainability and addressing climate change; and • Goal 1.5 - Expand sustainable and active transportation. b. Goal #3 – Economic Prosperity: • Goal 3.4 - Capitalize on Durham’s strengths in key economic sectors to attract high-quality jobs. 6. Conclusion 6.1 Following Durham Region’s climate emergency declaration, staff have focused on driving implementation of the Region’s existing council-endorsed plans, and working to establish the Regional municipality as a leader in the context of community wide climate action. This report provides Council with an update on the implementation status of Region’s three Council-endorsed climate action plans covering work on community-wide energy transitions under the DCEP, community- wide climate resilience initiatives under the DCCAP, and corporate climate leadership programs under the CCAP. The report identifies key challenges, opportunities, and next steps to better align climate action efforts with the vision, goals and targets established by Regional Council. 6.2 Within the DCEP, implementation remains focused on supporting energy retrofits in existing homes and buildings with planned enhancements to the Durham Greener Homes (DGH) program to leverage digital technologies to enhance resident engagement, and the initial implementation of the Durham Greener Buildings (DGB) Program. Critical work continues in new building construction, including creation of a voluntary green development support program for the building industry, and work to advance the feasibility of district energy opportunities in strategic growth areas. Transportation-related emissions continue to represent the largest share of the Region’s community-wide carbon footprint, and will require sustained investment in public transit services, active transportation infrastructure, and EV charging infrastructure to see reductions in the coming years. 6.3 Within the CCAP, corporate building retrofits and high-performance new building construction are commencing, and GHG Emission Reduction Pathway studies are expected to be completed towards the end of 2024 for all building portfolios to enable integration of measures into the business planning and budgets process. The Water and Wastewater GHG Management Strategy is nearly complete and will provide a pathway towards decarbonization across Regional water and wastewater options, accounting for planned capacity growth to serve a growing population. Page 31 Report #2024-COW-12 Page 24 of 24 6.4 Within the DCCAP, implementation led by the Region, local area municipalities and conservation authorities is well underway across most recommended program areas. In 2024, the focus is on integrating resilience retrofit measures into the DGH program, developing a Durham Sustainable Infrastructure Design Policy and Standard, and completing Public Health climate vulnerability assessments. These will integrate equity considerations, leverage collaborations for collective impact, and consider strategic monitoring and evaluation to track change and demonstrate success. 6.5 This report has been reviewed by staff in Works, Finance, Planning, Social Services, Transit, DRPS, and Health, including RDPS and approved by Sandra Austin, Executive Director, Strategic Initiatives, 905-668-7711, extension 2449. 6.6 For additional information, contact: Ian McVey, Manager, Sustainability, at 905- 668-7711, extension 3803. Respectfully submitted, Original signed by Elaine C. Baxter-Trahair Chief Administrative Officer Page 32 THIS LETTER HAS BEEN FORWARDED TO THE EIGHT AREA CLERKS If you require this information in an accessible format, please call 1-800-372-1102 ext. 2097. The Regional Municipality of Durham Corporate Services Department – Legislative Services Division 605 Rossland Rd. E. Level 1 PO Box 623 Whitby, ON L1N 6A3 Canada 905-668-7711 1-800-372-1102 durham.ca Alexander Harras M.P.A. Director of Legislative Services & Regional Clerk Sent Via Email April 25, 2024 June Gallagher Clerk Municipality of Clarington 40 Temperance Street Bowmanville, ON L1C 3A6 Dear June Gallagher: RE: The Region of Durham’s response to the Ontario Regulatory Registry posting related to the “Proposal to create regulation to support implementation of the GO Transit Station Funding Act, 2023” (2024-COW-14), Our File: T05 Council of the Region of Durham, at its meeting held on April 24, 2024, adopted the following recommendations of the Committee of the Whole: “A) That the letter from Regional staff to the Ministry of Infrastructure as contained in Attachment 2 of Report #2024-COW-14 of the Commissioners of Finance and Planning and Economic Development, be endorsed as the Region of Durham’s response to Ontario’s Regulatory Registry post regarding the proposal to create regulation to support the implementation of the GO Transit Station Funding Act, 2023; and B) That a copy of Report #2024-COW-14 and Council resolution be sent to all area municipalities within the Region of Durham.” Please find enclosed a copy of Report #2024-COW-14 for your information. Alexander Harras Alexander Harras, Director of Legislative Services & Regional Clerk AH/sd Page 33 If you require this information in an accessible format, please call 1-800-372-1102 extension 2097. Enclosed c: N. Taylor, Commissioner of Finance B. Bridgeman, Commissioner of Planning and Economic Development Page 34 If this information is required in an accessible format, please contact 1-800-372-1102 ext. 2564. The Regional Municipality of Durham Report To: Committee of the Whole From: Commissioner of Finance and Commissioner of Planning and Economic Development Report: #2024-COW-14 Date: April 10, 2024 Subject: The Region of Durham’s response to the Ontario Regulatory Registry posting related to the “Proposal to create regulation to support implementation of the GO Transit Station Funding Act, 2023” Recommendation: That the Committee of the Whole recommends to Regional Council: A) That the letter from the CAO to the Province of Ontario as contained in Attachment 2 to Report #2024-COW-14, be endorsed as the Region of Durham’s response to Ontario’s Regulatory Registry post regarding the proposal to create regulation to support the implementation of the GO Transit Station Funding Act, 2023; and, B) That a copy of this report and Council resolution be sent to all area municipalities within the Region of Durham. Report: 1. Purpose 1.1 The purpose of this report is to seek Regional Council endorsement of Regional staff’s submission to the Province dated March 27, 2024, regarding the feedback the Ministry of Infrastructure is seeking to develop a regulation to implement the Transit Station Charge (TSC) through the GO Transit Station Funding Act, 2023. Page 35 Report #2024-COW-14 Page 2 of 10 1.2 On December 4, 2023, the GO Transit Station Funding Act, 2023 received Royal Assent. The legislation enables upper, single and lower-tier municipalities, as may be prescribed, to support the delivery of new GO stations through the collection of a TSC generated from development to pay for costs related to the construction of stations that the municipality has agreed to upfront finance. 1.3 The proposed feedback request from the Ministry of Infrastructure was posted for a 45-day comment period on the Ontario Regulatory Registry, which ended on March 29, 2024 (24-MOI003). As such, Regional staff submitted preliminary comments to ensure that the Region of Durham’s comments were received prior to the commenting deadline. Should Regional Council wish to offer additional or different comments, a revised response to the Province will be submitted. 2. Background 2.1 The Region of Durham has been working with the provincial government for over 30 years to expand GO train service to Bowmanville, which is a 20-kilometre extension involving four proposed new GO stations in the City of Oshawa and the Municipality of Clarington. 2.2 On December 7, 2017, Metrolinx awarded a Technical Advisor contract to Stantec to provide technical advisory, design, and construction support services for the Lakeshore GO East Extension to Bowmanville. The Technical Advisor has designed the rail extension to approximately 50 per cent, excluding the stations, in anticipation of awarding a Construction Manager at Risk contract to refine and bring the rail extension to 100 per cent design and priced for construction. 2.3 In 2018, Metrolinx introduced its Market Driven Strategy. This strategy introduced the concept of “the benefiter pays”, where the Province would no longer pay for new GO stations. Instead, Metrolinx would leverage the value of the new transit service and would work with landowners adjacent to GO stations, (who stand to benefit the greatest from the introduction of the transit service), to pay for the station in exchange for the rapid transit service. 2.4 The Market Driven Strategy is based on the ability of a single developer to pay for and build a GO station in exchange for the increased land value associated with the new transit infrastructure. 2.5 Despite having carried out an engagement process to identify station partners in Durham, it has proven challenging for Metrolinx to secure developer agreements to pay for any of the four stations, underpinned by the following reasons: Page 36 Report #2024-COW-14 Page 3 of 10 a. The fragmented land ownership around the proposed stations means that no single land parcel can generate enough land value uplift to support paying for stations; and, b. The land value uplift and Regional market conditions are not strong enough within the Durham context for any single developer to absorb the cost of a station while supporting a viable development. 2.6 On June 15, 2023, Metrolinx awarded the rail extension Construction Manager at Risk (CMAR) contract to Bowmanville Construction Partners which is a general partnership between Ledcor CMI Ltd. and Dragados Canada Inc. This consortium will advance the rail extension to 100 per cent design for Metrolinx and will be the preferred contractor to build the rail extension. At present, the CMAR contract does not include the design or construction of the four proposed stations. 2.7 On September 25, 2023, the Province introduced new legislation, titled the GO Transit Station Funding Act, 2023. 2.8 On December 4, 2023, the GO Transit Station Funding Act, 2023 received Royal Assent and came into force. This legislation: a. gives municipalities the ability to pass a by-law to collect a TSC to be levied on lands subject to development to pay costs related to the construction of a proposed new GO Transit station within a prescribed area around a proposed new GO station, provided a by-law is passed before the construction of the GO station begins; b. provides that the TSC may recover costs related to station construction, interest on any debt incurred to pay any costs to be recovered, and any other amount provided for in the by-law; c. makes the TSC payable upon the issuance of a building permit, with some provisions for earlier or later payments; d. establishes reporting requirements for participating municipalities and a recourse for unpaid charges; e. requires municipalities that choose to enact a TSC by-law to undertake a background study to determine if a charge is payable in any particular case, set the rate of the charge, establish the land area where the charges will apply, complete public consultation, and receive consent from the Minister of Infrastructure to pass the by-law; and f. exempts lands owned and used for the purposes of a municipality or school board. Page 37 Report #2024-COW-14 Page 4 of 10 2.9 The Ministry of Infrastructure is seeking feedback to prepare regulation under the GO Transit Station Funding Act, 2023 to implement the TSC and the transit station by-law. It is critical that the Province moves quickly on these regulations, as the design of the rail corridor extension for the Lakeshore East GO Extension to Bowmanville continues to progress, whereas the design of the stations are lagging behind significantly. If the Region were to upfront the cost of these stations through this new legislation, the longer it takes to determine the viability of the program, the more costs the Region could incur in redesign to have the stations work integrated with the rail corridor works, thereby decreasing the overall project feasibility. 3. Proposal to create regulation to support implementation of the GO Transit Station Funding Act, 2023 3.1 The Ontario Regulatory Registry posting included a series of questions the Ministry of Infrastructure was requesting feedback on from stakeholders. The Ontario Regulatory Registry posting can be found in Attachment 2. Below includes a high- level summary of the Region of Durham staff’s comments on the questions. How municipalities should be directed to map the boundaries to which they can apply the Transit Station Charge? 3.2 The geographic boundaries for the collection of a TSC should relate to the impact that transit has on real estate value, as Bill 131 is based on land value capture. 3.3 Each community and each station site is unique, therefore the forecasted impact of the transit service on real estate value and development will be different. Broad considerations include the extent to which an area is urbanized, existing transit options, boundaries such as infrastructure, or natural features, and the status of land use permissions. As a result, mapping of the boundaries to which the TSC may apply should be determined by each municipality on a case-by-case basis as part of the preparation of the background study. 3.4 Any delineation is likely best started in the context of provincially delineated Major Transit Station Areas (MTSA) or Protected Major Transit Station Areas (PMTSA’s) as the provincial policy that guides these delineations specifically prescribes policy benefits to land within a prescribed distance of a rapid transit station. 3.5 Flexibility related to the mapping should be provided to consider the following factors: Page 38 Report #2024-COW-14 Page 5 of 10 a. the configuration/compact nature/walkability of the planned neighbourhood b. whether lands outside of the MTSA or PMTSA will be impacted by the presence of the rapid transit station and service c. the benefits provided to a wider geographic area from increased access to regional transit service. What costs related to construction of a new GO station should be recoverable through the Transit Station Charge? 3.6 An excessive TSC will disincentivize development and is entirely contrary to the objective of equitably pooling land value uplift contributions by benefiting landowners in order to pay for a new GO station. It is critical that the TSC remains price sensitive and therefore cannot include endless costs to be recovered by Metrolinx and the municipality. 3.7 Construction costs for the station must be fixed at the time financing is being sought by the municipalities, as municipalities should not be involved in the delivery and oversight of the construction of the GO stations. Accordingly, it should not be the municipality’s responsibility to pay for project cost over runs or unknown conditions. 3.8 The recoverable costs through the TSC should include: • All costs associated with the studies needed to complete the background study including those required to assess the feasibility and risks of paying for the station(s), legal and advisory fees for the design, implementation, financing and administration of the station funding by law; and • All design and construction costs including municipal advisory services for station design oversight. The methodology and considerations to be included when calculating the charge and any additional requirements of the background study? 3.9 Reliable station costs should be examined against a conservative long term, market- based development forecast tested under several amortization time periods and interest rates scenarios. 3.10 Recognizing that a TSC is different than a development charge that seeks to achieve complete cost recovery, the methodology should consider the principles of equity and certainty for the private sector to have trust and confidence that the charge will reflect land value capture. Page 39 Report #2024-COW-14 Page 6 of 10 3.11 Municipalities should be allowed to vary the TSC throughout the geographic area the by-law is subject to as justified through the background study work related to land value uplift (i.e. varying the charge based on proximity to station), which will contribute to the overall calculation of the charge. 3.12 Municipalities should be permitted to use a conservative development forecast as municipalities cannot take on undue risk. There must be flexibility to allow for changes to the charge under exceptional circumstances. 3.13 A detailed methodology is included in Attachment 2. What are acceptable offset strategies or measures that prescribed municipalities can consider? 3.14 The introduction of transit infrastructure and fast frequent service, combined with municipally and provincially sponsored land use permissions that allow for a range of high-density developments increases land value for landowners, which creates a significant offset to landowners developing within the area. This increase in land value coupled with reduced parking standards, expedited municipal approvals, and guaranteed access to municipal services are offsets that the municipalities can consider. What is the methodology for calculating municipal offsets and co-ordinating offsets with the requirement for fee payment? 3.15 The offsets identified above are the primary drivers of land value increases that support the TSC payment. All other municipal fees and requirements, such as planning application fees, reduced parking standards, access to servicing, etc., should be incorporated into the analysis to show total value to the landowner and present it in the context of the difference in value if there were no station or transit service. The regulation should allow for a broad range of value related offsets such as guaranteed transit service based on municipal financial risk, as well as municipal offsets to ensure that this legislation continues to be based in a market driven strategy where the benefiter pays and does not become a municipal subsidy. In addition to the draft by-law and background study, what additional information, if any, should the Minister of Infrastructure require from municipalities before deciding to approve a Transit Station Charge by-law? 3.16 Municipal commitment to ensure transit supportive land uses, densities and policies are in place along with servicing. Page 40 Report #2024-COW-14 Page 7 of 10 3.17 Overall, the regulation should provide prescribed municipalities as much flexibility as possible to identify the appropriate components and TSC that will work for their community to deliver new GO stations. 3.18 The municipality should retain the right to terminate all agreements in the event the Minister makes amendments to the by-law that render the TSC no longer feasible from the municipality’s perspective. Should the Province consider exemption for certain forms of development from the Transit Station Charge? 3.19 Yes, and these should be identified by the municipality relative to their local context and the amount of revenue the transit service will generate. In addition, government owned lands should be subject to the TSC unless the proposed form of development is an exempted land use as determined by the municipality. 3.20 Where public institutions are exempt, the exemption should only apply to the space being provided for public institutional purposes (i.e., not retail, or other commercial uses therein). 3.21 In addition to considering certain exemptions, municipalities should have the option to recover lost revenue from exemptions through the TSC, permit phase-ins for certain community uses such as non-profit housing, and pre-payment to hedge inflation, if in the municipality’s view it is fair to the development industry and wouldn’t disincentivize development. Additional Items for Ministry Consideration 3.22 Interest costs paid by the municipality should be minimized wherever possible, and for this reason, no cost of any kind, and in particular interest costs, should be paid by a municipality until the designating TSC by-law is passed to collect the charge, and there is an agreement with Metrolinx that the station will be constructed. 3.23 In terms of Metrolinx staff costs to manage and deliver the project, this needs to be assessed in the context of whether the GO station is a planned capital project. Stations that are part of a planned Metrolinx capital extension project, such as the Bowmanville Go Extension, means that Metrolinx has already planned for the resources to deliver the project in its budget planning process. These fees should not be paid by the municipality and recovered from the private sector. If the station is not a planned capital project, the case for Metrolinx staff cost recovery may make sense. Page 41 Report #2024-COW-14 Page 8 of 10 3.24 In the case of a planned rail extension and the fact that there are finite costs that can be recovered, it does not make sense to seek land costs from the municipality which will be recovered through the private sector. The GO station asset and associated lands will be owned operated, maintained and leveraged for future optimization and as such, the private sector should not bear that cost either. 3.25 If the TSC results in funding that meets the target funding levels prior to debt retirement the municipality should be allowed to direct the surplus towards capital improvements that maybe necessary for accommodating improved services and increasing ridership. 4. Previous Reports and Decisions 4.1 On May 6, 2022, the Commissioner of the Planning and Economic Development Department released Council Information Report #2022-INFO-38, “Approval of the Lakeshore East GO Extension to Bowmanville”, which provided Council with an update on the approved alignment of the Extension and identified next steps. 4.2 On March 29, 2023, Council considered and endorsed confidential Committee of the Whole Report #2023-COW-11 containing information regarding the Bowmanville GO Extension station funding strategies. 4.3 On November 29, 2023, Council considered and endorsed the recommendations of Committee of the Whole Report #2023-COW-38, “Durham Region’s response to the proposed GO Transit Station Funding Act, 2023 which is a section within Bill 131: Transportation for the Future Act, 2023”, which sought endorsement of Durham Region staff’s input into the draft GO Transit Station Funding Act, 2023 legislation. 5. Next Steps 5.1 The Region will continue to explore the use of the new legislation as the regulation is developed as a means to ensure GO station delivery for the Bowmanville GO Extension project. 5.2 Regional staff will continue working with the Ministry of Infrastructure on the draft regulation, and report back to Council accordingly. 6. Relationship to Strategic Plan 6.1 The Lakeshore East GO Extension to Bowmanville will improve mobility and travel options, supports transit-oriented development and in particular, housing, and aligns Page 42 Report #2024-COW-14 Page 9 of 10 with/addresses the following strategic goals and priorities in the Durham Region Strategic Plan: a. Goal 1 Environmental Sustainability: Objective 1.5: Expand sustainable and active transportation. b. Goal 2 Community Vitality: Objective 2.1: Revitalize existing neighbourhoods and build complete communities that are walkable, well-connected, and have a mix of attainable housing. c. Goal 3 Economic Prosperity: Objective 3.3: Enhance communications and transportation networks to better connect people and move goods efficiently. d. Goal 4 Social Investment: Objective 4.1: Revitalize community housing and improve housing choice, affordability, and sustainability. 7. Conclusion 7.1 The GO Transit Station Funding Act, 2023 received Royal Assent and came into force on December 4, 2023. 7.2 The Ministry of Infrastructure is preparing regulations to implement the funding tools set out in the Act and is seeking feedback from stakeholders. 7.3 It is recommended that this Report and its recommendations be endorsed as the Region of Durham’s response to the feedback request on the Ontario Regulatory Registry as the next step required to support the design and construction of new GO stations in the Metrolinx service area. 7.4 This report has been prepared in consultation with the CAO’s office. 8. Attachments Attachment #1: Ontario Regulatory Registry Posting 24-MOI003 Attachment #2: Region of Durham Submission to the Ontario Regulatory Registry, commenting on the Ministry of Infrastructure’s proposal to create regulation to support implementation of the GO Transit Station Funding Act, 2023 Page 43 Report #2024-COW-14 Page 10 of 10 Respectfully submitted, Original signed by Brian Bridgeman, MCIP, RPP, PLE Commissioner of Planning and Economic Development Original signed by Nancy Taylor, BBA, CPA, CA Commissioner of Finance Recommended for Presentation to Committee Original signed by Elaine C. Baxter-Trahair Chief Administrative Officer Page 44 Attachment 1Page 45 Page 46 If this information is required in an accessible format, please contact Planning Reception at 1-800-372- 1102, ext. 2548. The Regional Municipality of Durham Planning and Economic Development Department Planning Division 605 Rossland Road East Level 4 PO Box 623 Whitby, ON L1N 6A3 Canada 905-668-77111-800-372-1102 Email: planning@durham.ca durham.ca Brian Bridgeman, MCIP, RPP, PLE Commissioner of Planning and Economic Development Attachment 2 Sent Via Ontario Regulatory Register March 27, 2024 Ministry of Infrastructure Transit Oriented Communities Policy & Delivery Branch College Park 777 Bay Street, 4th Floor, Suite 425 Toronto, ON M5G 2E5Address RE: Ministry of Infrastructure’s Ontario Regulatory Registry proposal to create regulation to support the implementation of the GO Transit Station Funding Act, 2023, Proposal No. 24-MOI003 On behalf of the Region of Durham, please accept the following staff commentary in response to the “Proposal to create regulation to support the implementation of the GO Transit Station Funding Act, 2023”. Please note that due to the commenting period on the Ontario Regulatory Registry, regional staff will be seeking endorsement of this letter at its Regional Council meeting on April 24, 2024. Should any modifications be made by Regional Council, I will immediately advise your office. Regional staff continue to be supportive of the GO Transit Station Funding Act, 2023, which received Royal Assent on December 4, 2023, and which established the new funding tool to enable prescribed municipalities (referenced as “municipality” or “municipalities”) to support the construction of critical new GO stations. The Region appreciates that the Ministry is now starting to develop the regulation needed to implement the Transit Station Charge (TSC) and urges the Ministry to continue to work collaboratively with its stakeholders to develop the regulation in a timely manner, understanding the compressed timeline that the Region of Durham continues to operate within. Please find Regional staff comments and feedback below related to the questions posed in the Ontario Regulatory Registry posting. How municipalities should be directed to map the boundaries to which they can apply the Transit Station Charge? The geographic boundaries for the collection of a TSC should relate to the impact that transit has on real estate value, as Bill 131 is based on land value capture. Page 47 Page 2 of 7 Each community and each station site is unique, therefore the forecasted impact of the transit service on real estate value and development will be different. Broad considerations include the extent to which an area is urbanized, existing transit options, boundaries such as infrastructure, or natural features, and the status of land use permissions. As a result, mapping of the boundaries to which the TSC may apply should be determined by each municipality on a case-by-case basis as part of the preparation of the Background Study. In general, the process for mapping the boundaries should include the following: • Review MTSA Boundaries. Many municipalities will have established Major Transit Station Area (MTSA) boundaries for future transit expansions as there is provincial policy that guides these delineations and specifically prescribes policy benefits to land within a prescribed distance of a rapid transit station. This work should be reviewed and considered as the minimum boundaries for the TSC. The MTSA (or PMSTA) boundaries should be reviewed against lands available for redevelopment and the impact on the overall community. • Lands Available for Redevelopment. An analysis of the local area that considers the pattern of existing land use and the probability of redevelopment as a result of the transit investment – often called a “soft site” analysis – should be undertaken. Sites that are close to, but not within the boundary of the MTSA might be included if it is determined that the transit service would have a material impact of the development or redevelopment of the area. • Impact on the overall community. The boundary may also be influenced by the overall impact on the community. Where the transit offers a new service in an area where it is expected that the market impacts extend beyond the MTSA a larger TSC area might be considered. For example, for Greater Golden Horseshoe communities that rely heavily on highway infrastructure to access the City of Toronto, the introduction of GO services may have a much more significant market impact than that experienced in more urban areas. What costs related to construction of a new GO station should be recoverable through the Transit Station Charge? As a precursor to advising on what would be fair to ask the private sector to pay in terms of cost recovery, it is critical to state that there is only so much cost that the private sector will be willing to bear, and that an excessive TSC will disincentivize development and is contrary to the objective of equitably pooling land value uplift contributions by benefiting landowners in order to pay for a new GO station. The TSC must be price sensitive and therefore cannot Page 48 Page 3 of 7 include endless costs to be recovered by Metrolinx and the municipality. In addition to identifying what is fair for the private sector to pay, it is critical to ensure that construction costs for the station are fixed at the time financing is sought by the municipalities, as municipalities should not be involved in the delivery and oversight of the construction. Accordingly, it should not be the municipality’s responsibility to pay for project cost over runs or unknown conditions. The recoverable costs through the Transit Station Charge should include: • All costs associated with the studies needed to complete the Background study, including those required to assess the feasibility and risks of paying for the station(s), legal and advisory fees for the design, implementation, financing and administration of the station funding by law. • All design and construction costs including municipal advisory services for station design oversight. The methodology and considerations to be included when calculating the fee and any additional requirements of the background study? Reliable station costs should be examined against a conservative long term, market-based development forecast tested under several amortization time periods and interest rate scenarios. Recognizing that a TSC is different than a development charge that seeks to achieve complete cost recovery, the methodology should consider the principles of equity and certainty for the private sector to have trust and confidence that the charge will reflect land value capture. Municipalities should be allowed to vary the TSC throughout the geographic area the by-law is subject to as justified through the background study work related to land value uplift (i.e., varying charge based on proximity to station), which will contribute to the overall calculation of the charge. Municipalities should be permitted to use a conservative development forecast, as municipalities cannot take on undue risk. There must be flexibility to allow for changes to the charge under exceptional circumstances. The following summarizes the key steps Durham Region believes should be included as part of the Background Study methodology: Page 49 Page 4 of 7 • Identify probable TSC area boundaries: As discussed above several scenarios should be developed to evaluate/assess the impact of various approaches to the boundaries of the TSC collection areas. • Identify soft sites: Within each boundary scenario identify development or redevelopment sites and calculate the probable development yield from each site in terms of gross floor area and unit yields for the forecast period. • Growth Forecasts: A long term, market based, development forecast should be prepared based on the expected long-term demand for intensified land uses within the Station Areas based on: o The growth forecast for the community. o The market attributes of the station area geographic location including the pattern of existing and surrounding land uses. o The amount of growth forecasted for higher density development forms from a municipal perspective. o Lands that may attract development that could form competitive supply. o Long term demand forecast. o Market experience/observed growth of mixed use / medium and high-density development within the community to establish a baseline growth forecast – (without transit) o Review medium and high-density historical observed growth within existing Transit Oriented Community (TOC) sites in comparable market areas to establish a basis for forecasting. o An analysis will be conducted to consider how non-residential uses will be treated through the TSC. • Estimate TOC Capture – Estimate the total forecasted demand for mixed use / medium and high-density growth within the community and how much of the forecasted demand might be captured within the MTSA (or adjusted TSC area) understanding that a component of the forecasted development could be captured elsewhere within the community. • Estimate the Land Value Uplift – a financial model should be developed that tests the probable land value increase a developer’s land would experience based on the new transit investment and the increased land use planning entitlements. This could be accomplished by developing a residual land value model that tests the supportable land value of a development – considering all costs, revenues and profit – of a development without transit. This analysis could then be compared to the same development with the increase in revenues and sales absorptions associated with the Page 50 Page 5 of 7 development with transit in place. The land value uplift is the theoretical maximum amount a developer could direct toward a TSC without impairing the feasibility of the development. • Develop assumptions for testing - Based on the above analysis a range of TSC charges based on per square foot of development area could be established for testing as well as other assumptions such as inflation rates. Financial Testing - The information from the aforementioned market-based growth forecasts and land value uplift should now be used to forecast how much revenue may be collected over the forecast/borrowing period to pay down all eligible costs including the debt requirement for funding the new station (as costed by Metrolinx). An amortization schedule that includes assumptions related to borrowing period, interest rates, gross floor area requiring a TSC, the proposed TSC inflation, offsets, and other factors, as necessary. This analysis should be repeated for each boundary scenario proposed for the TSC. The model may be used to test the sensitivity and make recommendations with respect to the following: • The impact of various interest rates on the ability to pay off the Municipal debt along with timing of when the debt is incurred (i.e., before or at completion of station construction). • The impact of increased or decreased development relative to base market-based growth forecasts. • Exempt development types (i.e., affordable housing). In this case, testing should make clear assumptions of the proposed exemption(s). For example, affordable housing exemptions should look at the percentage of units required, the minimum building size, the type of development (rental and condo), the target affordability level and duration of affordability. What are acceptable offset strategies or measures that prescribed municipalities can consider? The introduction of the transit infrastructure and fast frequent service, combined with municipally and provincially sponsored land use permissions that allow for a range of high-density developments increases land value for landowners, which creates a significant offset to developers. This increase in land value coupled with reduced parking standards, expedited municipal approvals, and guaranteed access to municipal services are offsets that the municipalities can consider. Municipalities that are successful in obtaining funding from other levels of government should be able to apply this funding to the debt. Page 51 Page 6 of 7 What is the methodology for calculating municipal offsets and co-ordinating offsets with the requirement for fee payment? The offsets identified above are the primary drivers of land value increases that support the TSC payment. All other municipal fees and requirements such as planning application fees, reduced parking standards, access to servicing etc., should be incorporated into the analysis to show total value to the landowner, and presented in the context of the difference in value if there were no station or transit service. The regulation should allow for a broad range of value related offsets such as the guaranteed transit service based on municipal financial risk, as well as municipal offsets to ensure that this legislation continues to be based in a market driven strategy where the benefiter pays so that this does not become a municipal subsidy. In addition to the draft by-law and background study, what additional information, if any, should the Minister of Infrastructure require from municipalities before deciding to approve a Transit Station Charge by-law? • Municipal commitment to ensure transit supportive land uses, densities and policies are in place along with servicing. • Overall, the regulation should provide municipalities as much flexibility as possible to identify the appropriate components and TSC that will work for their community to deliver new GO stations. • The municipality should retain the right to terminate all agreements in the event the Minister makes amendments to the by-law that render the TSC no longer feasible from the municipality’s perspective. Should the Province consider exemption for certain forms of development from the Transit Station Charge? Yes, and these should be identified by the municipality relative to their local context and the amount of revenue the transit service will generate. In addition, government owned lands should be subject to the TSC unless the proposed form of development is an exempted land use as determined by the municipality. Where public institutions are exempt, the exemption should only apply to the space being provided for public institutional purposes (i.e., not retail, or other commercial uses therein). In addition to considering certain exemptions, municipalities should have the option to recover lost revenue from exemptions through the TSC, permit phase-ins for certain community uses such as non-profit housing and pre-payment to hedge inflation, if in the municipality’s view it is fair to the development industry and wouldn’t disincentivize development. Page 52 Page 7 of 7 Additional Items for Ministry Consideration • Interest costs paid by the municipality should be minimized wherever possible, and for this reason, no cost of any kind, and in particular interest costs, should be paid by a municipality until the designating by-law is passed to collect the TSC, and there is an agreement with Metrolinx that the station will be constructed. • In terms of Metrolinx staff costs to manage and deliver the project, this needs to be assessed in the context of whether the GO station is a planned capital project or not. Stations that are part of a planned Metrolinx capital extension project, such as the Bowmanville GO Extension, means that Metrolinx has already planned for the resources to deliver the project in its budget planning process. These fees should not be paid by the municipality and recovered from the private sector. If the station is not a planned capital project, the case for Metrolinx staff cost recovery may make sense. • In the case of a planned Extension and the fact that there are finite costs that can be recovered, it does not make sense to seek land costs from the private sector. The GO station asset and associated lands will be owned operated, maintained and leveraged for future optimization and as such, the private sector should not bear that cost either. • If the TSC results in funding that meets the target funding levels prior to debt retirement the municipality should be allowed to direct the surplus towards capital improvements that maybe necessary for accommodating improved services and increasing ridership. Regional staff continue to welcome the opportunity to meet and further discuss the regulation to support the Transit Station Charge through the GO Transit Station Funding Act, 2023. Sincerely, Colleen Goodchild Colleen Goodchild, RPP, MCIP Director of Planning Regional Municipality of Durham Page 53 THIS LETTER HAS BEEN FORWARDED TO THE EIGHT AREA CLERKS If you require this information in an accessible format, please contact 1-800-372-1102 ext. 2097. The Regional Municipality of Durham Corporate Services Department – Legislative Services Division 605 Rossland Rd. E. Level 1 PO Box 623 Whitby, ON L1N 6A3 Canada 905-668-7711 1-800-372-1102 durham.ca Alexander Harras M.P.A. Director of Legislative Services & Regional Clerk SENT VIA EMAIL April 25, 2024 June Gallagher Clerk Municipality of Clarington 40 Temperance Street Bowmanville, ON L1C 3A6 Dear Ms. Gallagher: RE: Durham Agricultural Advisory Committee Resolution re: Stormwater Management Fees, Our File: C00 Council of the Region of Durham, at its meeting held on April 24, 2024, adopted the following recommendations of the Planning & Economic Development Committee: “Whereas Stormwater Management fees are intended for urban infrastructure needs and flood prevention, the Durham Agricultural Advisory Committee (DAAC) believes that bona fide farmers on agricultural properties should be exempt from paying Stormwater Management fees in the Region of Durham; and, that this resolution be circulated to Durham’s area municipalities for their information.” Alexander Harras Alexander Harras, Director of Legislative Services & Regional Clerk AH/vw c: B. Bridgeman, Commissioner of Planning & Economic Development Page 54 If this information is required in an accessible format, please contact 1-800-372-1102 ext. 2564 The Regional Municipality of Durham Information Report From: Commissioner of Planning and Economic Development Report: #2024-INFO-29 Date: April 26, 2024 Subject: 2023 Annual Building Activity Review, File: D03-02 Recommendation: Receive for information Report: 1. Purpose 1.1 This report summarizes the key findings of the 2023 Annual Building Activity Review. This annual report includes building permit and construction activity for Durham Region and the Greater Toronto and Hamilton Area (GTHA) for 2023, with comparisons to 2022. 2. Background 2.1 The Planning and Economic Development Department conducts ongoing monitoring activities to assess the effectiveness of the Durham Regional Official Plan (ROP) and other Regional policies. These monitoring activities assist in identifying emerging issues and trends. 2.2 Building activity is monitored as an indicator of Regional housing and employment activity, the level of local investment and economic performance. It is also an indicator of the local market for various new building types. This report provides a comprehensive analysis of construction activity from the start of the process (i.e. issuance of building permits), to the construction and occupancy of new residential Page 55 Page 2 of 6 units into the market. The report concludes with a comparison of Durham’s building activity with the other GTHA municipalities. 2.3 The 2023 Annual Building Activity Report (Attachment 1) presents key findings in both the residential and non-residential sectors along with trends, forecasts and housing market information. Attachment 2 to this report provides the background data and analysis used to produce the annual report. 3. Previous Reports and Decisions 3.1 The 2022 Annual Building Activity Review and historical reports can be found on the Planning for Growth page on the Region’s website. 4. Key Highlights The following summarizes key highlights from the 2023 Annual Building Activity Review: Residential building activity in Durham • The total value of building permits issued in Durham decreased slightly by 0.4%, from $2.89 billion in 2022 to $2.87 billion in 2023. • Residential building permit value decreased by 24.2%, from $2.17 billion in 2022 to $1.65 billion in 2023. • The total number of permits issued for new residential units in Durham decreased 10.1%, from 6,530 units in 2022 to 5,869 units in 2023. • Nearly 17.2% of new units (1,008 units) in 2023 were accessory apartments or additional dwelling units to an existing home, representing a 25.2% increase compared to 2022. • A total of 78% of new residential units in Durham were in multiple residential forms including row houses and apartments. • There was a 33.3% decrease in the number of housing starts from 5,797 in 2022 to 3,864 in 2023. At the same time, completions increased by 28.1% from 3,828 to 4,904. • The average cost of a new single-detached dwelling in Durham increased 21.9% from $993,940 in 2022 to $1,211,552 in 2023. It should also be noted that the average cost of a new single-detached dwelling in Durham in 2023 was 11.2% below the GTHA average. Page 56 Page 3 of 6 • The average price of a resale dwelling (all dwelling types) in Durham decreased by 8.6%, from $1024,570 to $936,023 in 2023. The average price of a resale single- detached dwelling also decreased by 8.3% from $1,130,814 in 2022 to $1,036,698 in 2023. It should be noted that the average bank rate increased by 107.4% from 2.42% in 2022 to 5.02% in 2023. Non-residential building activity in Durham • The value of non-residential building permits increased by 71.6%, from $716.6 million in 2022 to $1.23 billion in 2023. • Major non-residential construction projects initiated in 2023 included: o A new warehouse/distribution centre in Ajax (cumulative value of $179.3 million); o A new warehouse/distribution centre development in Ajax containing three buildings (cumulative value of $160.3 million); o A new industrial building in Whitby (cumulative value of $73.5 million); o A new industrial building in Oshawa (cumulative value of $70.1 million); o A new long-term care facility in Clarington ($61.3 million); o A new long-term care facility in Ajax (cumulative value of $57.3 million); o A new warehouse in Oshawa ($49.5 million); o A new industrial development in Pickering for FGF Food Campus (cumulative value of $40.1 million); o A new industrial building in Whitby ($30 million); o A new industrial building in Whitby ($28.6 million); o A new industrial building in Pickering ($26.9 million); o Site servicing and foundation for a new school in Oshawa ($21.5 million); o A new Porsche Experience Centre in Pickering ($20.2 million); o Renovations to a Regional facility in Whitby ($18 million); Page 57 Page 4 of 6 o A new commercial development in Whitby (cumulative value of $17.7 million); o A new foundation for a commercial building in Oshawa (15.1 million); and o A new commercial development in Oshawa (cumulative value of $12.6 million). Greater Toronto and Hamilton Area • Across the Greater Toronto and Hamilton Area, the total value of building permits issued (both residential and non-residential) increased by 5.1% from $29.6 billion in 2022, to nearly $31.2 billion in 2023. • In 2023, there were 62,629 building permits issued for new residential units in the GTHA, compared to 59,634 units in 2022 (+5%). Notably, Hamilton, York, and Toronto experienced an increase in the number of permits issued for new residential units, while Peel, Halton, and Durham experienced decreases. • The total value of residential building permits in the GTHA increased slightly by 0.3%, from $18.7 billion in 2022 to $18.8 billion in 2023. • The value of non-residential building permits issued in the GTHA increased by 13.4% from $10.9 billion in 2022, to nearly $12.4 billion in in 2023. 5. Relationship to Strategic Plan 5.1 This report aligns with/addresses the following strategic goals and priorities in the Durham Region Strategic Plan: a. Priority 3.1 (Economic Prosperity) – Position Durham Region as the location of choice for business; and b. Priority 5.3 (Service Excellence) – Demonstrate commitment to continuous quality improvement and communicating results. Page 58 Page 5 of 6 6. Conclusion 6.1 In 2023, Durham's residential sector experienced a decrease in the overall value of building permits1 (-24.2%) and in the number of permits for new units (-10.1%). The breakdown of new unit types indicates that the number of permits for apartments increased by nearly a third, while permits for single, semi-detached, and townhouse units decreased. The data indicates Durham’s continued upward growth trend in units offering a higher degree of diversity and affordability of housing options occurring in both intensification and greenfield areas. The availability of more apartment units coincides with recent challenges in housing affordability, and this trend can be expected to continue to accommodate housing needs in new and existing communities. 6.2 Comparisons between the 2023 building permit data for new residential units and development charge receipts collected by the Finance Department indicate that development charges (DCs) have been received for 75% of new units. Development charges are not collected for not-for-profit housing units, as well as additional residential units or accessory apartments. Furthermore, the collection of DCs for rental housing, retirement homes, and long-term care homes commence at occupancy, therefore these units are not recognized at the building permit stage. Additionally, the pending exemption of affordable units will be a factor in the future. These factors contribute to the difference between the total number of units recognized from building permits and units tied to DC collection. 6.3 Non-residential building permit value increased (+71.6%) compared to 2022 in all sectors, including all investment such as renovations to existing units, and new, additional, and temporary floorspace. 6.4 The Canada Mortgage and Housing Corporation (CMHC), in their Housing Market Outlook for Canada and Metropolitan Areas noted that following the decline in housing prices 2023 due to climbing interest rates, prices for homes in the Greater Toronto Area are expected to rise in 2024 and 2025 a mortgage rates gradually decline2. The decrease in the number of housing starts in 2023 is also expected to contribute to rising prices in the resale market. 6.5 A copy of this report will be forwarded to the area municipalities for information. 1 The value of residential building permits includes new units, additions, renovations, and miscellaneous alterations. 2 Housing Market Outlook, Canadian Metropolitan Areas, Spring 2023. Canada Housing and Mortgage Corporation. Page 59 Page 6 of 6 7. Attachments Attachment #1: 2023 Annual Building Activity Review Attachment #2: Background Data and Analysis Respectfully submitted, Original signed by Brian Bridgeman, MCIP, RPP, PLE Commissioner of Planning and Economic Development Page 60 Planning & Economic Development Department ANNUALBUILDINGACTIVITY REVIEW APRIL 2024 Page 61 In 2023, Durham's residential sector experienced a decrease both in the number of permits for new residential units (-10.1%) and the value (-24.2%) of permits overall, compared to 2022. The value of non-residential building permits increased significantly in Durham (+71.6%) compared to 2022. Regional staff continue to monitor the impact of market-based shifts and inflationary pressures on building activity over the course of 2024. The Planning and Economic Development Department conducts ongoing monitoring activities to assess the effectiveness of the Durham Regional Official Plan and other Regional policies. Building activity is also an indicator of regional housing and employment activity, the level of local investment, and economic performance. 2 | 2023 Annual Building Activity Review | Planning and Economic Development DepartmentPage 62 2023 HIGHLIGHTS 2023 Annual Building Activity Review | Planning and Economic Development Department | 3Page 63 RESIDENTIAL 1Includes all forms of town houses, including stacked townhomes and row housing. 2Includes apartments, condominiums, and accessory apartments/dwelling units. 4 | 2023 Annual Building Activity Review | Planning and Economic Development DepartmentPage 64 GTHA 2023 Annual Building Activity Review | Planning and Economic Development Department | 5Page 65 NON-RESIDENTIAL 6 | 2023 Annual Building Activity Review | Planning and Economic Development DepartmentPage 66 GTHA 2023 Annual Building Activity Review | Planning and Economic Development Department | 7Page 67 8 | 2023 Annual Building Activity Review | Planning and Economic Development DepartmentPage 68 TRENDS 2023 Annual Building Activity Review | Planning and Economic Development Department | 9Page 69 FORECAST 1 Durham Region Planning & Economic Development Department - Residential growth forecasts for infrastructure planning, Spring 2023. Note: The building permit forecasts are based on achieving Durham’s overall population forecast of 1.3 million to 2051 as identified in the Council-adopted Regional Official Plan, pending approval from the Province at the time this document is being published. 10 | 2023 Annual Building Activity Review | Planning and Economic Development DepartmentPage 70 HOUSING MARKET 2023 Annual Building Activity Review | Planning and Economic Development Department | 11Page 71 The Regional Municipality of Durham Planning & Economic Development Department 605 Rossland Road East., Whitby, ON 905-668-7711 or 1-800-372-1102 www.durham.ca If this information is required in an accessible format, please contact 1-800-372-1102 ext. 2546. Page 72 Key Indicators 2022 2023 % #%#%change Total value of building permits ($ millions)2,887.3 100%2,874.9 100%-0.4 a)By area municipality: Ajax 308.1 10.7 542.0 18.9 76.0 Brock 49.3 1.7 41.5 1.4 -15.8 Clarington 309.3 10.7 433.6 15.1 40.2 Oshawa 902.3 31.3 639.5 22.2 -29.1 Pickering 471.0 16.3 732.9 25.5 55.6 Scugog 35.8 1.2 32.3 1.1 -9.8 Uxbridge 91.7 3.2 72.6 2.5 -20.8 Whitby 719.8 24.9 380.5 13.2 -47.1 b)By permit type: Residential 2,170.7 75.2 1,645.0 57.2 -24.2 Non-Residential 716.6 24.8 1,229.9 42.8 71.6 Key Indicators 2022 2023 % #%#%change Total value of residential building permits ($ millions)2,170.7 100%1,645.0 100%-24.2 a)By area municipality: Ajax 199.4 9.2 75.9 4.6 -61.9 Brock 34.9 1.6 13.2 0.8 -62.1 Clarington 196.2 9.0 312.7 19.0 59.4 Oshawa 762.5 35.1 375.0 22.8 -50.8 Pickering 374.3 17.2 621.0 37.8 65.9 Scugog 31.0 1.4 24.5 1.5 -21.1 Uxbridge 75.8 3.5 58.9 3.6 -22.3 Whitby 496.5 22.9 163.7 10.0 -67.0 b)By construction type: New residential units 1,999.4 92.1 1,504.9 91.5 -24.7 Renovations, additions and improvements 170.7 7.9 140.1 8.5 -18.0 Table 1 Total value of building permits ($ million) Table 2 Total value of residential building permits ($ million) Attachment 2 Building Permit Activity in Durham - January to December Note: All figures rounded Source: Durham Region Planning Division building permit summaries. Page 73 Key Indicators 2022 2023 % #%#%Change Permits issued for new residential units 6,530 100%5,869 100%-10.1 a)By unit type: Single 1,365 20.9 1,189 20.3 -12.9 Semi 199 3.0 101 1.7 -49.2 Town 2,320 35.5 1,069 18.2 -53.9 Apartment 2,646 40.5 3,510 59.8 32.7 b)By area municipality: Ajax 1,085 16.6 381 6.5 -64.9 Brock 69 1.1 18 0.3 -73.9 Clarington 595 9.1 813 13.9 36.6 Oshawa 2,141 32.8 1,205 20.5 -43.7 Pickering 1,023 15.7 2,686 45.8 162.6 Scugog 62 0.9 39 0.7 -37.1 Uxbridge 171 2.6 86 1.5 -49.7 Whitby 1,384 21.2 641 10.9 -53.7 c)By urban/rural area: Urban 6,446 98.7 5,780 98.5 -10.3 Rural 84 1.3 89 1.5 6.0 d)By average dwelling size (square feet): Single 2,651 2,576 -2.8 Semi 1,743 1,879 7.8 Town 1,709 1,698 -0.6 Apartment*1,019 786 -22.9 Table 3 Permits issued for new residential units (# of units) Note: All figures rounded Source: Durham Region Planning Division building permit summaries. Page 74 Key Indicators 2022 2023 % #%#%Change Value of non-residential building permits 716.6 100%1229.9 100%71.6 a)By sector: Commercial 206.9 28.9 244.5 19.9 18.2 Industrial 411.5 57.4 722.6 58.8 75.6 Agricultural 10.0 1.4 15.7 1.3 56.8 Institutional 36.9 5.1 200.0 16.3 442.6 Governmental 51.4 7.2 47.1 3.8 -8.3 b)By area municipality: Ajax 108.6 15.2 466.1 37.9 329.1 Brock 14.4 2.0 28.3 2.3 96.4 Clarington 113.1 15.8 120.8 9.8 6.9 Oshawa 139.8 19.5 264.5 21.5 89.1 Pickering 96.7 13.5 111.8 9.1 15.6 Scugog 4.8 0.7 7.9 0.6 63.8 Uxbridge 15.8 2.2 13.7 1.1 -13.8 Whitby 223.3 31.2 216.9 17.6 -2.9 c)Commercial, industrial, and agricultural sectors:628.4 100.0 982.8 100.0 56.4 Value Associated with New Construction 400.0 63.7 753.6 76.7 88.4 Value of Renovations, Additions and Improvements 228.4 36.3 229.2 23.3 0.4 d)Institutional and governmental sectors:88.2 100.0 247.1 100.0 180.1 Value Associated with New Construction 14.7 16.7 135.8 55.0 821.3 Value of Renovations, Additions and Improvements 73.5 83.3 111.3 45.0 51.4 Key Indicators 2022 2023 % #%#%Change Non-residential floorspace (thousand sq. ft.)5,610.3 100%8,486.0 100%51.3 a)By sector: Commercial 963.5 17.2 1,437.4 16.9 49.2 Industrial 3,824.0 68.2 5,894.5 69.5 54.1 Agricultural 362.9 6.5 286.2 3.4 -21.1 Institutional 214.0 3.8 629.2 7.4 194.0 Governmental 245.9 4.4 238.7 2.8 -2.9 b)By area municipality: Ajax 815.5 14.5 3,738.9 44.1 358.4 Brock 118.8 2.1 154.6 1.8 30.1 Clarington 1,226.9 21.9 1,048.5 12.4 -14.5 Oshawa 320.6 5.7 756.1 8.9 135.9 Pickering 657.3 11.7 423.9 5.0 -35.5 Scugog 130.1 2.3 123.5 1.5 -5.1 Uxbridge 173.5 3.1 157.7 1.9 -9.1 Whitby 2,167.7 38.6 2,082.8 24.5 -3.9 Table 5 Non-residential floor space (thousand sq. ft.) Note: All figures rounded Source: Durham Region Planning Division building permit summaries. Table 4 Value of non-residential building permits ($ millions) Page 75 Key indicators 2022 2023 % Change 1.Durham's share of GTHA Total Value Residential Value Residential Units Non-Residential Value building permit activity (%) 9.7 11.6 11.0 6.6 9.2 8.7 9.4 10.0 -0.5 -2.8 -1.6 3.4 2022 # 2022 % 2023 # 2023 % % Change 2.Total value GTHA Durham Halton Peel Toronto York Hamilton of building permits issued ($ millions) 29,640.1 2,887.3 2,989.4 5,598.0 11,681.2 4,501.2 1,983.0 100.0% 9.7% 10.1% 18.9% 39.4% 15.2% 6.7% 31,150.9 2,874.9 2,953.4 4,932.5 12,410.8 5,452.7 2,526.6 100.0% 9.2% 9.5% 15.8% 39.8% 17.5% 8.1% 5.1% -0.4% -1.2% -11.9% 6.2% 21.1% 27.4% 3.Value of GTHA Durham Halton Peel Toronto York Hamilton residential building permits issued ($ millions) 18,749.4 2,170.7 2,349.9 3,970.6 6,375.9 2,723.8 1,158.5 100.0% 11.6% 12.5% 21.2% 34.0% 14.5% 6.2% 18,800.7 1,645.0 1,834.7 2,984.0 6,535.7 4,123.2 1,678.2 100.0% 8.7% 9.8% 15.9% 34.8% 21.9% 8.9% 0.3% -24.2% -21.9% -24.8% 2.5% 51.4% 44.9% Note: This data may contain estimated values by Statistics Canada. As such, this data is subject to change Sources: Statistics Canada (Halton, Peel, Toronto, York), City of Hamilton, and Durham Region Planning / Area municipal building permit records Table 6 Building permit activity in the Greater Toronto and Hamilton Area (GTHA) Page 76 Key indicators 2022 2022 2023 2023 % # % # %Change GTHA 59,634 100.0%62,629 100.0%5.0% Single 7,307 12.3%5,337 8.5%-27.0% Semi 667 1.1%470 0.8%-29.5% Town 7,680 12.9%6,322 10.1%-17.7% Apartment 43,980 73.7%50,500 80.6%14.8% Durham 6,530 11.0%5,869 9.4%-10.1% Single 1,365 18.7%1,189 22.3%-12.9% Semi 199 29.8%101 21.5%-49.2% Town 2,320 30.2%1,069 16.9%-53.9% Apartment 2,646 6.0%3,510 7.0%32.7% Halton 5,941 10.0%5,155 8.2%-13.2% Single 1,075 14.7%536 10.0%-50.1% Semi 32 4.8%97 20.6%203.1% Town 753 9.8%1,381 21.8%83.4% Apartment 4,081 9.3%3,141 6.2%-23.0% Peel 21,068 35.3%15,502 24.8%-26.4% Single 1,606 22.0%677 12.7%-57.8% Semi 169 25.3%22 4.7%-87.0% Town 1,080 14.1%929 14.7%-14.0% Apartment 18,213 41.4%13,874 27.5%-23.8% Toronto 15,494 26.0%18,000 28.7%16.2% Single 879 12.0%857 16.1%-2.5% Semi 46 6.9%70 14.9%52.2% Town 539 7.0%592 9.4%9.8% Apartment 14,030 31.9%16,481 32.6%17.5% York 7,361 12.3%12,353 19.7%67.8% Single 1,834 25.1%1,778 33.3%-3.1% Semi 137 20.5%131 27.9%-4.4% Town 1,957 25.5%2,047 32.4%4.6% Apartment 3,433 7.8%8,397 16.6%144.6% Hamilton 3,240 5.4%5,750 9.2%77.5% Single 548 7.5%300 5.6%-45.3% Semi 84 1.1%49 10.4%-41.7% Town 1,031 14.1%304 4.8%-70.5% Apartment 1,577 21.6%5,097 10.1%223.2% Key indicators 2022 2022 2023 2023 % # % # %Change GTHA 10,890.7 100.0%12,350.2 100.0%13.4% Durham 716.6 6.6%1,229.9 10.0%71.6% Halton 639.5 5.9%1,118.7 9.1%74.9% Peel 1,627.4 14.9%1,948.5 15.8%19.7% Toronto 5,305.2 48.7%5,875.1 47.6%10.7% York 1,777.5 16.3%1,329.6 10.8%-25.2% Hamilton 824.5 7.6%848.4 6.9%2.9% Note: This data may contain estimated values by Statistics Canada. As such, this data is subject to change Sources: Statistics Canada (Halton, Peel, Toronto, York), City of Hamilton, and Durham Region Planning / Area municipal building permit records Table 7 Permits issued for new residential unit types in the GTHA Table 8 Value of non-residential building permits issued in the GTHA ($ millions) Page 77 Key Indicators # 2022 %# 2023 % % Change 1.Housing Supply a)Total Supply Pending Starts Under Construction Completed & Not Absorbed b)Starts c)Completions 11,432 2,514 8,891 27 5,797 3,828 100% 22.0 77.8 0.2 10,330 2,496 7,827 7 3,864 4,904 100% 24.2 75.8 0.1 -9.6 -0.7 -12.0 -74.1 -33.3 28.1 2.Total Supply a)By unit type: Single Semi Town Apartment 11,432 2,629 279 3,613 4,911 100% 23.0 2.4 31.6 43.0 10,330 2,180 208 2,210 5,732 100% 21.1 2.0 21.4 55.5 -9.6 -17.1 -25.4 -38.8 16.7 3.Absorptions a)By unit type: Single Semi Town Apartment b)By area municipality: Ajax Brock Clarington Oshawa Pickering Scugog Uxbridge Whitby 3,769 1,276 266 1,443 784 292 0 629 1104 417 0 71 1256 100% 306.0 63.8 346.0 188.0 70.0 0.0 150.8 264.7 100.0 0.0 17.0 301.2 4,651 1,582 164 2,208 697 233 0 398 1,299 1,746 0 88 887 100% 90.6 9.4 126.5 39.9 13.3 0.0 22.8 74.4 100.0 0.0 5.0 50.8 23.4 24.0 -38.3 53.0 -11.1 -20.2 0.0 -36.7 17.7 318.7 0.0 23.9 -29.4 Source: Canada Mortgage & Housing Corporation (CMHC) - Local Housing Market Tables, 2022/23 and Housing Market Information Portal Table 9 Housing Market Supply of New Units in Durham - January to December Page 78 Key Indicators 2022 2023 % Change 1.1Average Interest Rates Conventional Mortgage 1 Year Term 3 Year Term 5 Year Term Bank Rate (%): Rates (%): 4.46 4.90 5.65 2.42 7.15 6.61 6.68 5.02 60.4 34.9 18.3 107.4 2.Average Cost of Durham Region: Ajax Brock Clarington Oshawa Pickering Scugog Uxbridge Whitby City of Toronto York Region Peel Region Halton Region Hamilton a New Single Detached 2Dwelling $993,940 $1,658,181 -- $924,469 $895,504 $1,236,773 -- -- $959,566 $2,075,673 $1,531,070 $1,210,599 $1,060,496 $622,445 $1,211,552 $1,295,925 -- $1,177,541 $1,199,216 $1,232,638 -- $1,534,682 $1,172,438 $2,064,866 $1,629,377 $1,172,823 $1,192,312 $710,968 21.9 -21.8 -- 27.4 33.9 -0.3 -- -- 22.2 -0.5 6.4 -3.1 12.4 14.2 3.3Resale Housing Market in Durham Number of Sales Number of New Listings Average Price (all dwelling types) Average Price (single-detached dwelling) 9,875 18,164 $1,024,570 $1,130,814 8,487 16,389 $936,023 $1,036,698 -14.1 -9.8 -8.6 -8.3 Sources:1. Bank of Canada Website: http://www.bankofcanada.ca/rates/interest-rates/canadian-interest-rates/ 2. CMHC, Housing Now - Greater Toronto Area, December 2022/2023 and Housing Market Information Portal. Prices rounded. 3. Toronto Regional Real Estate Board - Market Watch, December 2022/2023. Prices rounded. Table 10 Housing Market Indicators - January to December Page 79 April 23, 2024 The Honourable Doug Ford Premier of Ontario Legislative Building 1 Queen’s Park Toronto, ON M7A 1A1 Sent via email: premier@ontario.ca Re: Provincial Regulations Needed to Restrict Keeping of Non-native ("exotic") Wild Animals Our File 35.11.2 Dear Premier Ford, At its meeting held on April 8, 2024, St. Catharines City Council approved the following motion: WHEREAS Ontario has more private non-native (“exotic”) wild animal keepers, roadside zoos, mobile zoos, wildlife exhibits and other captive wildlife operations than any other province; and WHEREAS the Province of Ontario has of yet not developed regulations to prohibit or restrict animal possession, breeding, or use of non-native (“exotic”) wild animals in captivity; and WHEREAS non-native (“exotic”) wild animals can pose very serious human health and safety risks, and attacks causing human injury and death have occurred in the province; and WHEREAS the keeping of non-native (“exotic”) wild animals can cause poor animal welfare and suffering, and poses risks to local environments and wildlife; and WHEREAS owners of non-native (“exotic”) wild animals can move from one community to another even after their operations have been shut down due to animal welfare or public health and safety concerns; and WHEREAS municipalities have struggled, often for months or years, to deal with non-native (“exotic”) wild animal issues and have experienced substantive regulatory, administrative, enforcement and financial challenges; and Page 80 WHEREAS the Association of Municipalities of Ontario (AMO), the Association of Municipal Managers, Clerks and Treasurers of Ontario (AMCTO) and the Municipal Law Enforcement Officers' Association (MLEOA) have indicated their support for World Animal Protection’s campaign for provincial regulations of non- native (“exotic”) wild animals and roadside zoos in letters to the Ontario Solicitor General and Ontario Minister for Natural Resources and Forestry; THEREFORE BE IT RESOLVED that the City of St. Catharines hereby petitions the provincial government to implement provincial regulations to restrict the possession, breeding, and use of non-native (“exotic”) wild animals and license zoos in order to guarantee the fair and consistent application of policy throughout Ontario for the safety of Ontario’s citizens and the non-native (“exotic”) wild animal population; and BE IT FURTHER RESOLVED that this resolution will be forwarded to all municipalities in Ontario for support, the Premier of Ontario, Ontario Solicitor General, Ontario Minister for Natural Resources and Forestry, MPP Jennie Stevens, MPP Sam Oosterhoff, MPP Jeff Burch, AMO, AMCTO, and MLEAO. If you have any questions, please contact the Office of the City Clerk at extension 1524. Kristen Sullivan, City Clerk Legal and Clerks Services, Office of the City Clerk :av cc: The Honourable Michael S. Kerzner, Solicitor General The Honourable Graydon Smith, Minister of Natural Resources and Forestry Local MPPs Association of Municipalities of Ontario (AMO) Association of Municipal Managers, Clerks and Treasurers of Ontario (AMCTO) Municipal Law Enforcement Officers’ Association of Ontario (MLEAO) All Municipalities of Ontario Page 81 From:ClerksExternalEmail To:Chambers, Michelle Subject:Decision on Excess Soil Regulation Amendments Date:April 25, 2024 10:37:50 AM Greetings, I am reaching out to share that Ontario has finalized amendments to O. Reg. 406/19: On-Site and Excess Soil Regulation (“Excess Soil Regulation”) and Rules for Soil Management and Excess Soil Quality Standards (“Soil Rules”). These amendments increase soil management flexibility and support greater reuse of excess soil from housing, infrastructure, and other construction projects. To reduce burden and increase opportunities for beneficial reuse of excess soil, while protecting our province’s people and environment and working to stop the illegal dumping of potentially contaminated soil, Ontario has now made the following amendments to the Excess Soil Regulation: · Enhanced usability of project leader-owned or controlled storage sites (Class 2 soil management sites and local waste transfer facilities) and soil depots to allow for larger volumes of soil being managed without requiring a waste approval, now up to 25,000 m3 with additional flexibility for public bodies, and having greater alignment of rules across sites; · Increased opportunities for reuse of salt-impacted soil in lower-risk circumstances; · Exempting specified small projects and undertakings (generating or reusing 5m3 or less) from hauling records, and clarifying required information and responsibility for hauling records; · Exempting landscaping projects at enhanced investigation project areas from reuse planning requirements, as long as the area of excavation is assessed as not likely to be impacted by contamination; · Clarifying the responsibility of the qualified person when substances such as polymers are used for dewatering or solidification of liquid soil; · Enabling temporary storage of sediment and soil near waterbodies for projects excavating in or adjacent to that waterbody; · Clarifying sampling requirements for tunnelling projects, salt-impacted soils, stormwater management ponds, and use of past sampling reports to avoid over-sampling; and · Providing additional clarifications to assist with better understanding and Page 82 consistent implementation of requirements. The ministry had also consulted on proposed amendments to exempt additional soil management depots from needing a waste environmental compliance approval while following regulatory rules (i.e., aggregate reuse depots and small liquid soil depots), as well as proposals to file notices on the Excess Soil Registry for these depots andother existing sites. Based on the feedback received suggesting that more consideration and detail on the operational requirements is needed, the ministry has not yet finalized its decision on these matters. More information on the finalized amendments may be found in the decision notice posted on the Environmental Registry. Links to the regulation and Soil Rules as well as existing guidance to help understand the regulatory requirements can be found on MECP’s Handling Excess Soil website. For information on using the Excess Soil Registry, please refer to the Resource Productivity and Recovery Authority website. MECP will continue to work collaboratively with stakeholders and Indigenouscommunities on implementation of these amendments and the Excess Soil Regulation in general. Please pass this information along to colleagues, members of your organization, other organizations and anyone else that may be interested. We would like to thank everyone who took the time to share input on this proposal. Ifyou have any questions or would like to discuss these amendments or other aspects of the Excess Soil Regulation and Soil Rules, please contact Reema Kureishy or Chris Lompart at MECP.LandPolicy@ontario.ca. Sincerely, Original Signed by: Robyn Kurtes Director, Environmental Policy Branch Ministry of the Environment, Conservation and Parks Page 83 357-2024-265 April 22, 2024 Dear Sir/Madam, I am writing to you in response to your request for a comprehensive environmental assessment for the Regional Municipalities of York and Durham’s (Regions) proposed increase in treatment capacity at the Durham York Energy Centre (DYEC) from 140,000 to 160,000 tonnes per year (the Project). Following the publication of the Notice of Completion of the Environmental Screening Process, the Ministry of the Environment, Conservation and Parks (ministry) received seven elevation requests asking that the Regions be required to prepare an environmental assessment for the Project. Please be aware that changes were made to the environmental assessment program as of February 22, 2024. To implement Ontario’s move to a project list approach, Part II of the Environmental Assessment Act (EAA) and O. Reg. 101/07 (Waste Projects) were revoked and Part II.3 of the EAA, and O. Reg. 50/24 (Part II.3 Projects – Designations and Exemptions) and O. Reg. 53/24 (General and Transitional Matters) came into force. In addition, the Guide to Environmental Assessment Requirements for Waste Management Projects (the Guide) was amended and the screening process was renamed the Environmental Screening Process for Waste Management Projects. The new regulations designate the Project as a Part II.3 Project and also transition the project under the new provisions without further assessment requirements. Based on all of the information before me, I have decided to deny the requests for elevation for the reasons set out below. In making my decision, I have carefully considered the factors set out in the screening process, including the concerns raised in the elevation requests I received, the Regions’ response to the requests, the Regions’ Environmental Screening Process documentation, and the consultation record. Reasons Part B of the Guide establishes the process through which projects of this type can be carried out, and includes identifying, describing and assessing potential environmental effects of a project, including completing relevant studies, undertaking consultation with interested persons and Indigenous communities, and developing impact management measures. The results of the screening process and conclusions reached are documented in an Environmental Screening Report. Based on the Environmental Ministry of the Environment, Conservation and Parks Office of the Minister 777 Bay Street, 5th Floor Toronto ON M7A 2J3 Tel.: 416-314-6790 Ministère de l'Environnement, de la Protection de la nature et des Parcs Bureau duministre 777, rue Bay, 5e étage Toronto (Ontario) M7A 2J3 Tél. : 416.314.679 Page 84 Page 2. Screening Report for the Project, the Regions have carried out the process in accordance with the screening process. The concerns raised in support of the elevation requests received included the potential for negative impacts to air quality and public heath, ecological impacts, water impacts, proximity of the DYEC to specified areas, and concerns about the adequacy of reports and responses provided by the Regions. Based on all of the information before me, I am satisfied that the concerns raised in the requests have been addressed by the Regions through the previous environmental assessment processes and through commitments made in its Environmental Screening Report. The Environmental Screening Report demonstrates that the anticipated emissions associated with the Project would be within regulated provincial limits. I am therefore satisfied that the anticipated emissions from the Project are not likely to adversely impact air quality, groundwater or surface water. The Regions have committed to completing an updated Human Health and Ecological Risk Assessment for any future expansions of the DYEC to assess any potential impacts to human and ecological health. Additionally, further technical review of air emissions will occur through the application process for an amendment to the DYEC Environmental Compliance Approval (ECA) for Air. The ECA regulates air emissions from the facility and includes conditions of approval that are protective of human health and the natural environment. I am also satisfied that meaningful opportunities for public, government agency, and Indigenous engagement and consultation were provided by the Regions during the process. Based on the above, I am of the opinion that there is no public benefit from requiring the Project to proceed through a comprehensive environmental assessment. With this decision having been made, the Regions can now proceed with the Project, subject to any other permits or approvals required. The Regions must ensure that the Project is implemented in the manner set out in the Environmental Screening Report, and inclusive of all mitigating measures and commitments, and environmental and other provisions therein. I would like to thank you for bringing your concerns to the ministry’s attention. Sincerely, Andrea Khanjin Minister of the Environment, Conservation and Parks Page 85 Page 3. c: Kathleen O’Neill, Director, Environmental Assessment Branch, MECP, Kathleen.oneill@ontario.ca Page 86 The Corporation of the Municipality of Clarington, 40 Temperance Street, Bowmanville, ON L1C 3A6 1-800-563-1195 | Local: 905-623-3379 | info@clarington.net | www.clarington.net If this information is required in an alternate format, please contact the Accessibility Co-ordinator at 905-623-3379 ext. 2131 March 16, 2022 To Interested Parties: Re: Update and Next Steps: Municipal Comments on the Durham York Energy Centre Throughput Increase from 140,000 to 160,000 Tonnes per Year File Number: PG.25.06 At a meeting held on March 14, 2022, the Council of the Municipality of Clarington approved the following Resolution #C-062-22: That Report PDS-016-22, and any related communication items, be received; That the responses from the Regions of Durham and York (Regions) to the Municipality’s comments on the Durham York Energy Centre (DYEC) throughput increase (from 140,000 to 160,000 tonnes per year) Environmental Screening Process be received; That Staff be directed to submit an Environmental Assessment elevation request to the Director of the Environmental Assessment and Approvals Branch, MECP; and That Staff be directed to request the Ministry of Environment, Conservation and Parks (MECP): i. confirm their review and acceptance of the air quality modelling methodology, data inputs, and Air Quality Impact Assessment completed as supporting documentation to the Environmental Screening Process, and ii. respond to concerns regarding elevated levels of nitrogen dioxide, sulphur dioxide and benzo[a]pyrene in the local airshed and the relative contributions of the DYEC; and further Page 87 PDS-016-22 March 16, 2022 Page 2 The Corporation of the Municipality of Clarington, 40 Temperance Street, Bowmanville, ON L1C 3A6 1-800-563-1195 | Local: 905-623-3379 | info@clarington.net | www.clarington.net That Staff be directed to prepare a briefing document on planned future development in the South Courtice Area to support DYEC emissions dispersion modelling considerations by the Regions and MECP during the subsequent Environmental Compliance Approval Amendment process. Yours truly, _________________________ June Gallagher, B.A., Dipl. M.A. Municipal Clerk JG/lp c: Gioseph Anello, Manager of Waste Planning & Technical Services Andrew Evans, Project Manager - Waste Planning & Technical Services Linda Gasser Wendy Bracken Kerry Meydam Karrie Lynn Dymond Celeste Dugas, Manager - York Durham District Office Philip Dunn, Senior Environmental Officer Muneeb Farid, Contract Management Engineer, Environmental Services A. Burke, Senior Planner R. Windle, Director of Planning and Development Services Page 88 Orono DBIA Meeting Minutes April 18, 2024 Location: Orono Town Hall Present: Karen Lowery, vice chair Merissa and Brad Beckstead Gavin Crab Scott Story Julie Cashin-Oster Councillor Marg Zwart Perry Kirkbridge Heather Maitland Frank Maitland Leah McKnight Regrets: Manish Jagwani, Prisco Teves Jr.Tammy Rendell Ron Liu, Amin Rawdah, Raymond Bishay, Tina Barrie Nava Subramaniyam, Jessi Hoey, Jac Woog Lisa Roy and Timothy Jackson Guests: Sam Kent, Kent Farms Karen Lowery called the meeting to order at 8:33 Inclusion Statement The Municipality of Clarington is situated within the traditional and treaty territory of the Mississaugas and Chippewas (chip-uh-WUH) of the Anishinabeg (uh-NISH-in-NAH-bek) known today as the Williams Treaties First Nations. Our work on these lands acknowledges their resilience and their longstanding contributions to the area now known as the Municipality of Clarington Approval of Agenda Motion: Gavin Seconder: Heather Page 89 Approval of February Minutes Motion: Gavin Seconder: Heather Heather Maitland as Executive Secretary for D.B.I.A Motion: Karen Seconder: Frank, Gavin, Julie, Brad and Perry. To be discussed with the sub-committee. a.Discussion of Moving Forward with the Orono Downtown b.including rental of empty buildings c.washrooms – Town Hall &/or Orono Library d.Bike Rental program e.Dog waste stations f.Orono sign installation g.Heather Maitland to discuss cost increase of Orono swag h.Update of Website and Arena advertising program I.Farmers market possibility inside & downtown j.Coffee shop / cyclists k.Cross promotion of local & surrounding businesses. 1) Alister hasn’t approved the ORONO town sign and if he will be on his property. We aren’t sure how much power it’s going to take to run it and need further investigation. 2) Board of Trade - we need to reschedule the discussion on filling the empty buildings and touching base with trying to get tenants in the empty buildings. In addition, adding to the downtown by adding green to the community, ie, scooters or something with the trails. Another meeting will be set up for May. 3) Washrooms are available in the library - we need to advertise this and when they’re open. They’re open 6 days a week. Heather will reach out to Samantha. Laura at invest Clarington had the original discussion. The bistro and building beside it are listed for $695,000. Page 90 4) Swag: Heather sent information to Brad on the swag, he got 3 costs that have savings varying from 10-150%. 150% savings is better quality but only 1 print and 100 of each. You can get different sizes, but not different colours or prints. Potentially a booth at the Orono fair to sell the swag or at the farmers market. Brad has brainstormed a few different options in terms of designs for the swag - “ what is Orono all about” Moving depot Oshawa or Scugog sales can do 2-3 prints no charge with a minimum 10 order. It’s all dependent on how many we’re going to want to sell. The Co-op and The Orono General Store are also selling them but the one’s from the DBIA all proceeds go back into the down and DBIA. If we bought 100, 10 businesses could each put their logo on the side of the t-shirt to promote their business in-town.Timothy could help us by re-posting it on Facebook and promote the sale of the swag.Brad’s suggestion is save the 150% and he will send out the costing and designs to the DBIA. 5) The arena website won’t be available until the Orono Fair. We want 20 new slides for once the arena opens back up.The slides will run on the TV in the arena. Each business needs to sign off their slide content prior to them being submitted to be displayed at the arena to ensure accuracy. 6) Sam Kent is reinstating the Farmers Market website. A sponsor was obtained for portable washrooms. A couple new vendors are coming on-board. Once a month they will have a food truck. It will alternate between pizza and Hawaiian food. They’re going to have different themes, ie kids serve customers. The sign on the 115 was submitted to the province but it will take 2-3 years. Wild Hearts Farm in Newtonville is helping with the sign. The first market will likely be mid-June. After the dog show, it will be at the Orono Arena.Vendor’s can apply through the website.A post is coming out next week to advertise vendor applications. The next meeting is at the fairgrounds on April 30. The hours will be 2-6. The farmers market will end in October. They have applied for a $2500 grant from the province. Downtown banners will be put up for the farmers market. We have new banners downtown for veterans as well.The banners and flags will be put up within the next month. Baskets on the west side and boxes on the east side will be displayed. A grant will be applied for but funding for this could be used from the Big Box fund. 7) Karen reached out to Chris at Classic Designs regarding a price to rewire the Christmas lights. Karen talked to Nick about parking - he’s the president of the fair board. We can have the parking at the north end for the antique market and all other parking can be at the fairgrounds for the car show. Philip owns the property at the north end - Brad asked him if we could use it for parking and he said we could. Antique festival is August 10 from 10-4. 8) Scott had a meeting with the head organizer of the Wyatt car show that is a fundraiser for Sick Kids. It will be July 27 - he is reaching out to the OCC to see if anyone can help with it. They need volunteers. Scott will ask him if he can come out to a meeting to talk about asking for volunteers. The easter egg hunt went well, 60 kilos of chocolate was used for the hunt. Next year, there is an idea for potentially a photo opportunity display with the easter bunny volunteer. This year, we ran out of Page 91 cups, next year we need to buy more for hot chocolate. 9) Scott has organized the Tea for Sandy on April 26 at Rebekah’s Hall from 1-3. It’s an informal drop-in. Tea, coffee, a small cake and potentially some sandwiches. Brad will provide flowers for the Tea. Councillor Marg has a plaque for Sandy. Heather to help with decorations. -Previous minutes adopted- Bank - $32,784.07 remaining in Big Box fund and $7859.40 in main bank account Date of Next Meeting – May 16, 2024, 8:30am, Orono Town Hall Meeting Adjourned at 9:39 A.M. Page 92 April 25, 2024 Nicole Pincombe Director, Business Planning and Budgeting Region of Durham 605 Rossland Road East Whitby, Ontario, L1N8Y9 Nicole.Pincombe@durham.ca RE: 2023 Audited Financial Statements Dear Ms. Pincombe: Section 38(3) of the Conservation Authorities Act, R.S.O. 1990, c. C.27 requires that upon receipt of the auditor’s report of the examination of our accounts and transactions, that we forward a copy of the report to each participating municipality and to the Minister. Enclosed is a copy of our 2023 Audited Financial statements approved by the Board of Directors as per resolution #41/24. If you have any questions or require further information, please feel free to contact myself directly. Sincerely, Jonathan Lucas, CPA Director, Corporate Services Enclosures: 2023 Audited Financial Statements, Kawartha Conservation cc. Mark Majchrowski, Chief Administrative Officer, Kawartha Conservation Joanne Cermak, Director, Financial Services, Region of Durham Ken Nix, Chief Administrative Officer, Township of Scugog Ralph Walton, Acting Director, Corporate Services/Clerk, Township of Scugog Michelle Willson, Chief Administrative Officer, Township of Brock Fernando Lamanna, Clerk/Deputy CAO, Township of Brock Mary-Ann Dempster, Chief Administrative Officer, Municipality of Clarington June Gallagher, Deputy Clerk, Municipality of Clarington Page 93 Kawartha Region Conservation Authority Financial Statements For the year ended December 31, 2023 Page 94 Kawartha Region Conservation Authority Financial Statements For the year ended December 31, 2023 Contents Management's Responsibility 2 Independent Auditor's Report 3 - 4 Financial Statements Statement of Financial Position 5 Statement of Operations and Accumulated Surplus 6 Statement of Change in Net Financial Assets 7 Statement of Cash Flows 8 Notes to the Financial Statements 9 - 21 Schedules 22 - 27 Page 95 DocuSign Envelope lO: 77 E82072-89E1 4923-A868-540374E6462C IAANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEIAENTS The accompanying financiat statements of Kawartha Region Conservation Authority (the "Authority") are the responsibitity of the Authority's management and have been prepared in comp(iance with legistation, and in accordance with generatty accepted accounting principtes for [oca[ governments estabtished by the Pubtic Sector Accounting Board of The Chartered Professional Accountants of Canada. A summary of the significant accounting policies are described in Note 1to the financial statements. The preparation of financiat statements necessarity invotves the use of estimates based on management's judgment, particutarty when transactions affecting the current accounting period cannot be finatized with certainty until future periods. The Authority's management maintains a system of internal controts designed to provide reasonabte assurance that assets are safeguarded, transactions are property authorized and recorded in comptiance with tegistative and regutatory requirements, and retiabte financiat information is avaitable on a timety basis for preparation of the financ'iat statements. These systems are monitored and evatuated by lilanagement. ,y'lembers meet with l{anagement and the external auditors to review the financial statements and discuss any significant financia( reporting or internal controt matters prior to their approvat of the financiaI statements. The financial statements have been audited by BDO Canada LLP, independent externat auditors appointed by the Authority. The accompanying lndependent Auditor's Report outtines their responsibitities, the scope of their examination and their opinion on the Authority's financial statements. (Vice Chair Pat Warren Harotd Wright Aprit 1 , 2024Aptil 1 , 2024 Page 96 Independent Auditor's Report To the Members of Kawartha Region Conservation Authority Opinion We have audited the financial statements of Kawartha Region Conservation Authority, (the "Authority") which comprise the statement of financial position as at December 31, 2023, and the statements of operations and accumulated surplus, change in net financial assets and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Authority as at December 31, 2023, and the results of its operations, changes in net financial assets, and cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Authority in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Authority’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Authority or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Authority’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 3 Tel: 705 726 6331 Fax: 705 722 6588 www.bdo.ca BDO Canada LLP300 Lakeshore Drive, Suite 300 Barrie, ON, Canada, L4N 0B4 BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. Disclaimer information. Summolobor sequatismod diam aci bla facin wis nibh el in ulputpat, con utpat. Summolobor sequatismod diam aci bla facin wis nibh el in ulputpat, con utpat. Page 97 As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authorities internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Authorities ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Authorities to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Authority to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Chartered Professional Accountants, Licensed Public Accountants Barrie, Ontario April 1, 2024 4 Page 98 DocuSign Envelope lD: 7 7 E8207 2-89E1 4923-4868-540374E6462C December 31 Kawartha Region Conservation Authority Statement of Financial Position zo23 2022 Financial assets Cash and cash equivatents (Note 3) Accounts receivabte (Note 4) Financial liabilities Accounts payable and accrued tiabitities Deferred revenue (Note 5) Deferred revenue - source water protection (Note 5) Deferred revenue - ptanning and regutation (Note 5) Deferred capital contributions Net financial assets Non-financial assets Tangibte capitat assets (Note 6) Prepaid expenses Accumulated surplus (Note 9) s 3,611,626 s 3,395,977 332 045 323 338 3,943,671 3,719,315 448,397 390,2871,140,054 1 ,011 ,05775,599 105,609469,980 454,00462,412 55,440 2 3 196 442 Z 747 0'16 397 229 1 702 918 3,727,398 3,660,227 28 191 36 90't 750 589 3 697 118 s 5,497,818 s 5,400,046 Contingent Liabilities (Note 12) Approved by *ud"L Vice Chair f 5 The accompanyrng notes are an integral part of thes€ financial itatements Page 99 Kawartha Region Conservation Authority Statement of Operations and Accumulated Surplus Budget 2023 For the year ended December 31 (Note 2)2023 2022 Revenue Municipal levies: General operating $1,715,325 $1,715,325 $1,653,325 Special operating 106,900 67,625 45,059 General benefiting 40,000 33,018 6,160 Special benefiting 1,009,900 702,840 499,357 2,872,125 2,518,808 2,203,901 Planning and development services (Schedule A) 603,200 629,740 615,027 Integrated watershed management (Schedule B) 70,400 91,802 64,857 Stewardship and conservation lands (Schedule C)136,250 112,603 251,827 Corporate services (Schedule D)86,800 208,581 117,925 Special projects (Schedule E)222,400 395,843 224,070 Capital contributions -22,953 5,528 3,991,175 3,980,330 3,483,135 Expenses Planning and development services (Schedule A)865,686 873,932 702,285 Integrated watershed management (Schedule B)549,585 554,684 507,579 Stewardship and conservation lands (Schedule C)390,099 461,811 438,555 Corporate services (Schedule D)790,330 854,819 768,482 Special projects (Schedule E)1,349,000 1,137,312 768,647 3,944,700 3,882,558 3,185,548 Annual surplus 46,475 97,772 297,587 Accumulated surplus, beginning of year 5,400,046 5,400,046 5,102,459 Accumulated surplus, end of year $5,446,521 $5,497,818 $5,400,046 The accompanying notes are an integral part of these financial statements 6Page 100 Kawartha Region Conservation Authority Statement of Change in Net Financial Assets Budget 2023 For the year ended December 31 (Note 2)2023 2022 Annual surplus $46,475 $97,772 $297,587 Acquisition of tangible capital assets -(143,515)(63,243) Amortization of tangible capital assets -78,833 75,190 Loss on disposal of tangible capital assets -2,511 5,016 46,475 35,601 314,550 Change in prepaid expenses -8,710 (15,299) Change in net financial assets 46,475 44,311 299,251 Net financial assets, beginning of year 1,702,918 1,702,918 1,403,667 Net financial assets, end of year $1,749,393 $1,747,229 $1,702,918 The accompanying notes are an integral part of these financial statements 7Page 101 Kawartha Region Conservation Authority Statement of Cash Flows For the year ended December 31 2023 2022 Operating Transactions Annual surplus $97,772 $297,587 Non-cash changes to operations: Amortization of tangible capital assets 78,833 75,190 Loss on disposal of tangible capital assets 2,511 5,016 Changes in non-cash operating items: Accounts receivable (8,707) 19,969 Prepaid expenses 8,710 (15,299) Accounts payable and accrued liabilities 58,110 (76,104) Deferred revenue 128,997 116,211 Deferred revenue - source water protection (30,010) (24,300) Deferred revenue - planning and regulation 15,976 50,743 Total Operating Transactions 352,192 449,013 Capital Transactions Deferred capital contributions 6,972 3,450 Acquisition of tangible capital assets (143,515) (63,243) Total Capital Transactions (136,543) (59,793) Increase in cash and cash equivalents 215,649 389,220 Cash and cash equivalents, beginning of year 3,395,977 3,006,757 Cash and cash equivalents, end of year $3,611,626 $3,395,977 Supplemental cash flow information: Cash $3,558,407 $3,345,007 Money market funds 53,219 50,970 The accompanying notes are an integral part of these financial statements 8Page 102 Kawartha Region Conservation Authority Notes to the Financial Statements December 31, 2023 1. Summary of Significant Accounting Policies Nature of the Authority Kawartha Region Conservation Authority (the "Authority") was established on October 31, 1979, in accordance with Section 3(1) of the Conservation Authorities Act of Ontario. The Authority is classified as a registered charity under the Income Tax Act (Canada) and as such, is not subject to income taxes provided certain disbursement requirements are met. The objective of the Authority, as stated by the Conservation Authorities Act R.S.O. 1990 is "to provide for the organization and delivery of programs and services that further the conservation, restoration, development and management of natural resources in watersheds in Ontario". Management's Responsibility The financial statements of the Authority are the responsibility of management. They have been prepared in accordance with Canadian public sector accounting standards established by the Public Sector Accounting Board ("PSAB") of The Chartered Professional Accountants of Canada. Basis of Accounting Revenue and expenses are reported on the accrual basis of accounting whereby they are reflected in the accounts in the year in which they have been earned and incurred, respectively, whether or not such transactions have been settled by the receipt or payment of money. Various revenue and expense items flow through the statement of financial activities based on their general nature in relation to operating activities. To the extent that these revenue and expense items relate to specific reserve balances, these items are reflected on Schedule F - Continuity of Reserves Cash and Cash Equivalents Cash and cash equivalents comprise cash on hand, demand deposits and short-term cashable investments. Short-term investments are highly liquid, subject to insignificant risk of changes in value. 9Page 103 Kawartha Region Conservation Authority Notes to the Financial Statements December 31, 2023 1. Summary of Significant Accounting Policies (continued) Non-Financial Assets, Tangible Capital Assets Non-financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They have useful lives extending beyond the current year, and are not intended for sale in the ordinary course of operations. (i) Tangible Capital Assets Tangible capital assets are recorded at cost, less accumulated amortization. Cost includes all amounts directly attributable to acquisition, construction, development or betterment of the tangible capital asset including transportation costs, installation costs, design and engineering fees, legal fees and site preparation costs. Amortization is recorded on a straight-line basis over the estimated life of the tangible capital asset using the following rates: Buildings 10 - 40 years Conservation area improvements 10 - 50 years Gauge stations and monitoring wells 10 - 50 years Vehicles 10 years Furniture and fixtures 7 - 10 years Equipment 5 - 10 years Computers and computer software 3 - 10 years Assets under construction are not amortized until the asset is available for productive use, at which time, they are capitalized. (ii) Contributed Tangible Capital Assets Tangible capital assets received as contributions are recorded at the fair value at the date of receipt. Vacation pay and lieu time liabilities Vacation credits earned but not taken and lieu time entitlements are accrued as earned. Vacation credits earned do not vest over time. Reserves Reserves are established under approval of the Kawartha Region Conservation Authority (Kawartha Conservation) Board of Directors. The recommendation of reserves and appropriations fall under the authority of the CAO and the Director of Corporate Services. Increases or decreases in these reserves are made by appropriations to or from operations. Any use of funds from a reserve shall be authorized by the Board of Directors as outlined in procedure. 10Page 104 Kawartha Region Conservation Authority Notes to the Financial Statements December 31, 2023 1. Summary of Significant Accounting Policies (continued) Government transfers Government transfers and municipal levies are recognized as revenue in the financial statements when the transfer is authorized and any eligibility criteria are met, except to the extent that transfer stipulations give rise to an obligation that meets the definition of a liability. Government transfers and municipal levies are recognized as deferred revenue when transfer stipulations give rise to a liability. Government transfers and municipal levies are recognized in the statement of operations as the stipulation liabilities are settled. Restricted Revenue Contributions, other than government transfers, are deferred when restrictions are placed on their use by the external contributor, and are recognized as revenue when used for the purpose specified. Contributions relating to capital assets are deferred and amortized over the useful life of the related asset. Other Revenue Other grants, donations and contributions, investment income and authority-generated revenue including permit fees are recognized when the related services are performed. Pension Plan The Authority is an employer member of the Ontario Municipal Employees Retirement System (OMERS), which is a multi-employer, defined benefit pension plan. The Board of Trustees, representing plan members and employers, is responsible for overseeing the management of the pension plan, including investment of the assets and administration of the benefits. The Authority has adopted defined contribution plan accounting principles for this Plan because insufficient information is available to apply defined benefit plan accounting principles. The Authority records as pension expense the current service cost, amortization of past service costs and interest costs related to the future employer contributions to the Plan for past employee service. Use of Estimates The preparation of the financial statements in accordance with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The principal estimates used in the preparation of these financial statements include accounts receivable, estimated provisions for accrued liabilities, the estimated useful lives of tangible capital assets and valuation of tangible capital assets. Actual results could differ from management's best estimates as additional information becomes available in the future. 11Page 105 Kawartha Region Conservation Authority Notes to the Financial Statements December 31, 2023 1. Summary of Significant Accounting Policies (continued) Financial Instruments Cash and equity instruments quoted in an active market are measured at fair value. Accounts receivable and accounts payable are measured at cost or amortized cost. The carrying amount of each of these financial instruments is presented on the statement of financial position. All financial assets are tested annually for impairment. When financial assets are impaired, impairment losses are recorded in the statement of operations. Transaction costs are added to the carrying value for financial instruments measured using cost or amortized cost. Transaction costs are expensed for financial instruments measured at fair value. The Authority's financial assets comprise of cash and cash equivalents including investments which are recorded at fair value; and accounts receivable which are recorded at amortized cost. The Authority's financial liabilities comprise of accounts payable and accrued liabilities which are recorded at amortized cost. Asset Retirement Obligation A liability for an asset retirement obligation is recognized when there is a legal obligation to incur retirement costs in relation to a tangible capital asset; the past transaction or event giving rise to the liability has occurred; it is expected that future economic benefits will be given up; and a reasonable estimate of the amount can be made. The liability is recorded at an amount that is the best estimate of the expenditure required to retire a tangible capital asset at the financial statement date. This liability is subsequently reviewed at each financial reporting date and adjusted for the passage of time and for any revisions to the timing, amount required to settle the obligation or the discount rate. Upon the initial measurement of an asset retirement obligation, a corresponding asset retirement cost is added to the carrying value of the related tangible capital asset if it is still in productive use. This cost is amortized over the useful life of the tangible capital asset. If the related tangible capital asset is unrecognized or no longer in productive use, the asset retirement costs are expensed. 12Page 106 Kawartha Region Conservation Authority Notes to the Financial Statements December 31, 2023 2.Budget Figures The Budget for 2023 was adopted by the Board of Directors on May 25, 2023. The budget was prepared on a cash basis (based on expected cash inflows and outflows), while Canadian public sector accounting standards now require the reporting of actual results on the financial statements to be prepared on a full accrual basis. The budget figures presented in the statements of operations and change in net financial assets represent the 2023 budget adopted by the Board. Revenue Expense Net Board approved budget: Operating $4,566,550 $4,601,550 $(35,000) Less:Budgeted internal revenues 512,650 512,650 - Budgeted capital expenses -144,200 144,200 Budgeted transfer from reserves 62,725 -62,725 Adjusted budget per the statement of operations $3,991,175 $3,944,700 $46,475 The budgeted numbers are unaudited. 3.Cash and Cash Equivalents Cash equivalents is comprised of funds held in money market funds. Investment in money market funds are recorded at fair value. As at year end, the Authority held $53,219 (2022 - $50,970) in money market funds with a fair value of $53,219 (2022 - $50,970). 4.Accounts Receivable 2023 2022 Municipal levies $53,764 $73,979 Federal and provincial 15,731 52,502 HST receivable 70,978 47,664 Other 191,572 149,193 $332,045 $323,338 13Page 107 Kawartha Region Conservation Authority Notes to the Financial Statements December 31, 2023 5.Deferred Revenue and Government Transfers Revenue received but not earned at year end is as follows: Deferred Revenue 2023 2022 Government Funding - Special Benefiting Projects: Durham - Plan Implementation $134,560 $155,558 Durham - East Cross Forest 168,185 131,610 CKL - Lake Dalrymple 30,877 18,188 CKL - Plan Implementation 431,543 536,062 MOE, Conservation and Parks -4,925 Trent Lakes - Blue Canoe 8,521 8,521 Trent Lakes - Flood Plain Mapping 220,150 - Government Funding - Special Joint Benefiting Capital Projects: City of Kawartha Lakes and Durham Region 64,427 34,208 Government Funding - Other Deferred Projects: Digitization of Corporate Records 27,287 24,955 Environmental Monitoring Strategy Implementation 2,132 - Levy Stability 7,428 7,426 Other Deferred Projects: Grants and Self-Generated 44,943 89,604 $1,140,053 $1,011,057 Deferred Revenue - Source Water Protection 2023 2022 Government Funding - Source Water Protection Program $75,599 $105,609 Deferred Revenue - Planning and Regulation 2023 2022 Section 28 Regulations - Large Scale Fill $274,513 $283,538 Permit and Subdivision Applications 195,467 170,466 $469,980 $454,004 These amounts are recognized as revenue as directly related expenses are incurred. Unless otherwise noted, deferred revenue received comes from non-government sources. 14Page 108 Kawartha Region Conservation Authority Notes to the Financial Statements December 31, 2023 6. Tangible Capital Assets 2023 Land and Land Custodianship Conservation Area Improvements Buildings Vehicles Machinery and Equipment Furniture and Fixtures Total Cost Balance, beginning of year $2,629,799 $428,640 $1,204,955 $180,788 $444,059 $121,068 $5,009,309 Add: Additions during the year 6,614 32,699 11,549 -92,653 -143,515 Add: Transfers ------- Less: Disposals during the year -(44,908)-(46,539)(117,787)(15,499)(224,733) Balance, end of year 2,636,413 416,431 1,216,504 134,249 418,925 105,569 4,928,091 Accumulated amortization Balance, beginning of year -267,049 485,196 151,162 328,649 117,026 1,349,082 Add: Amortization during the year -10,424 30,649 6,237 30,100 1,423 78,833 Less: Amortization on disposals -(44,908)-(46,539)(115,276)(15,499)(222,222) Balance, end of year -232,565 515,845 110,860 243,473 102,950 1,205,693 Net book value of tangible capital assets $2,636,413 $183,866 $700,659 $23,389 $175,452 $2,619 $3,722,398 15Page 109 Kawartha Region Conservation Authority Notes to the Financial Statements December 31, 2023 6. Tangible Capital Assets (continued) 2022 Land and Land Custodianship Conservation Area Improvements Buildings Vehicles Machinery and Equipment Furniture and Fixtures Total Cost Balance, beginning of year $2,628,934 $379,911 $1,204,955 $180,788 $444,741 $121,068 $4,960,397 Add: Additions during the year 865 48,729 --13,649 -63,243 Less: Disposals during the year ----(14,331)-(14,331) Balance, end of year 2,629,799 428,640 1,204,955 180,788 444,059 121,068 5,009,309 Accumulated amortization Balance, beginning of year -260,598 454,541 144,881 307,584 115,603 1,283,207 Add: Amortization during the year -6,451 30,655 6,281 30,380 1,423 75,190 Less: Amortization on disposals ----(9,315)-(9,315) Balance, end of year -267,049 485,196 151,162 328,649 117,026 1,349,082 Net book value of tangible capital assets $2,629,799 $161,591 $719,759 $29,626 $115,410 $4,042 $3,660,227 Tangible capital assets under construction have a value of $47,834 (2022 - $41,503) and have not been amortized. Amortization of these assets will commence when the assets are put into service. 16Page 110 Kawartha Region Conservation Authority Notes to the Financial Statements December 31, 2023 6. Tangible Capital Assets (continued) Included in land and land custodianship is $25,000 contributed to the acquisition of Dewey's Island. The Authority contributed to the acquisition of Dewey's Island by the Nature Conservancy of Canada in 1993. The Authority felt the acquisition was necessary to ensure the long-term protection of this Class 1 wetland. A custodial agreement was negotiated with The Nature Conservancy of Canada by the Authority. The agreement gives the Authority the management responsibilities for the property, as well as the first option to purchase in the case of any eventual sale by the Nature Conservancy of Canada. Included in land and land custodianship is $10,000 contributed to the acquisition of Tuckerman property. The Authority contributed to the acquisition of the Tuckerman property by Ontario Heritage Trust in 2004. The Authority felt the acquisition was necessary to ensure the long-term protection of this Class 1 wetland. A custodial agreement was negotiated with Ontario Heritage Trust and Ducks Unlimited Canada by the Authority. The agreement gives the Authority the management responsibilities for the property, as well as the first option to purchase in the case of any eventual sale by Ontario Heritage Trust. 7. Credit Facility The Authority has a $350,000 revolving line of credit held with Royal Bank of Canada at prime plus 0% interest. As at December 31, 2023, no amount has been drawn (2022 - $Nil). 8. Related Entity Kawartha Conservation Foundation is a registered charitable organization whose mission is to support the vision and mandate of Kawartha Conservation, by raising funds and promoting awareness to the community to restore and sustain a healthy environment for future generations. 9.Accumulated Surplus Accumulated surplus consists of the following: 2023 2022 Surpluses Internal 'current' and 'capital' funds $1,560,559 $1,509,719 Invested in tangible capital assets 3,659,986 3,604,787 Reserves 277,273 285,540 Accumulated surplus $5,497,818 $5,400,046 17Page 111 Kawartha Region Conservation Authority Notes to the Financial Statements December 31, 2023 10. Expenses by Object 2023 2022 Amortization $78,833 $75,190 Consulting and other professional fees 233,702 214,285 Grants 54,844 37,801 (Gain)/Loss on disposal of capital assets (2,762)5,016 Insurance 55,530 45,216 Interest and bank charges 4,966 4,091 Office 114,021 92,499 Program related 501,274 357,845 Repairs and maintenance 72,709 66,652 Training 18,249 6,596 Utilities and property taxes 41,236 39,388 Vehicle and travel 43,728 23,237 Wages and benefits 2,672,723 2,224,052 $3,889,053 $3,191,868 11.Pension Plan The Authority makes contributions to the Ontario Municipal Employees' Retirement System ("OMERS"), which is a multi-employer plan, on behalf of all full-time members of its staff. The plan is a defined benefit plan, which specifies that amount of the retirement benefit to be received by the employees based on the length of service and rates of pay. The Board of Trustees, representing plan members and employers, is responsible for overseeing the management of the pension plan, including the investment of assets and administration of benefits. OMERS provides pension services to more than 500,000 active and retired members and approximately 1,000 employees. Each year an independent actuary determines the status of OMERS Primary Pension Plan (the Plan) by comparing the actuarial value of invested assets to the estimated present value of all pension benefits that members have earned to date. The most recent actuarial valuation of the Plan was conducted at December 31, 2023. The results of this valuation disclosed total actuarial liabilities of $136.2 billion in respect of benefits accrued for service with actuarial assets at that date of $132 billion indicating an actuarial deficit of $4.2 billion. Because OMERS is a multi-employer plan, any pension plan surpluses or deficits are a joint responsibility of Ontario municipal organizations and their employees. As a result, the Authority does not recognize any share of the OMERS pension surplus or deficit. Contributions made by the Authority to OMERS for 2023 were $201,544 (2022 - $156,561). 12. Contingent Liabilities The Authority, as is common with all regulatory agencies, may be subject to appeals and lawsuits in regard to decisions rendered. Legal defence costs are accrued when such an action commences but damages and penalties are only accrued when action is considered to be of reasonable merit. There are no unresolved legal claims outstanding against the Authority as at December 31, 2023. 18Page 112 Kawartha Region Conservation Authority Notes to the Financial Statements December 31, 2023 13. Financial Instruments Risks Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Authority is exposed to credit risk resulting from the possibility that a counterparty to a financial instrument defaults on their financial obligations; if there is a concentration of transactions carried out with the same counterparty; or of financial obligations which have similar economic characteristics such that they could be similarly affected by changes in economic conditions. The Authority's financial instruments that are exposed to concentrations of credit risk relate primarily to its accounts receivable. The majority of the Authority's receivables are from government resources. There has been no change to this risk from the prior year. Liquidity risk Liquidity risk is the risk that the Authority will encounter difficulty in meeting its obligations associated with financial liabilities. Liquidity risk includes the risk that, as a result of operational liquidity requirements, the Authority will not have sufficient funds to settle a transaction on the due date. The Authority is exposed to this risk mainly in respect of its accounts payable. The Authority mitigates this risk by ensuring that it always has sufficient cash to allow it to meet its liabilities when they become due. There has been no change to this risk from the prior year. 14.Comparative Figures Certain comparative figures have been reclassified to conform with current year presentation. 19Page 113 Kawartha Region Conservation Authority Notes to the Financial Statements December 31, 2023 15. Program Information Certain allocation methodologies are employed in the preparation of program financial information. Government grants, user charges, transfers from other funds, and other revenue are allocated to the specific program or service they relate to. Expense allocations are both internal and external. Activity based costing is used to allocate internal support costs to departments. These costs include the net expenditures for departments, such as human resources, information systems, finance and others, commonly referred to as overhead. The Authority allocated its activities into four main program areas which are reported in the accompanying supplementary schedules to the financial statements. Planning and Development Services This department is responsible for planning, permitting and enforcement. Planning and Development Services fulfills the delegated responsibility of commenting on behalf of the Province of Ontario on planning matters related to natural hazards, administers Section 28 Regulation of the Conservation Authorities Act, Ontario Regulation 182/06 and ensures compliance of development activities impacting natural regulated features within the watershed. Integrated Watershed Management This department's primary responsibilities include protecting people and property across the watershed from flooding, developing and implementing watershed management plans, monitoring water quality and quantity, conducting research and assessments and supporting our stakeholders and partners by providing environmental spatial information to assist with decision making. The department works closely with municipalities to provide technical expertise and advice on issues related to climate change, stormwater management, watershed planning and other technical information. The objective of the Integrated Watershed Management department at Kawartha Conservation is to maintain health and sustainability of the region's watersheds for the benefit of both the environment and the community. Stewardship and Conservation Lands Kawartha Conservation owns and manages over 1,300 hectares of Conservation Lands with visitors including the general public, schools, special interest groups, and tourists. This department is responsible for supporting the advancement of the Conservation Lands programs including property maintenance, trail management and development, invasive species control, infrastructure improvements, and contributing to the strategic goals and advancement of the department. Stewardship initiatives are primarily supported through special projects within the City of Kawartha Lakes and Region of Durham through Special Projects. 20Page 114 Kawartha Region Conservation Authority Notes to the Financial Statements December 31, 2023 15. Program Information (continued) Corporate Services Corporate Services supports each of the departments and the organization as a whole by providing administrative support, coordination, policy development and implementation, program direction and development, strategic and business planning and Board support including agendas and minutes. Corporate Services is responsible for Finance, Human Resources, Health & Safety, Asset Management, Information Technology, Records Management and Corporate Communications. Special Projects Special benefiting projects are designed to meet the needs or concerns of a specific municipality, and thus directly benefit the individual municipality. The benefiting municipality funds the projects entirely or in apportionment with another benefiting municipality. Special projects include development and implementation of Lake Management Plans, updates to our watershed plans in the Region of Durham, floodplain mapping and tree planting initiatives. General benefiting projects have a watershed wide benefit and the levy is shared by the municipal partners on the same apportionment percentage as the operating levy. General projects include website enhancements and the digitisation of corporate records and implementation of our 10-year Environmental Strategy. 21Page 115 Kawartha Region Conservation Authority Planning and Development Services Schedule A For the year ended December 31, 2023 with comparative information for 2022 2023 Budget (Note 2)2023 Actual 2022 Actual Revenue: Drinking Water Source Protection $63,200 $56,666 $101,050 Planning and Permitting Fees 420,000 489,389 405,787 Large Scale Fill Permits 10,000 12,773 13,246 Municipal Agreement, Risk Management Official 60,000 53,402 44,792 MOU, Flood Plain Mapping 50,000 17,510 50,152 Total Program Generated Revenue 603,200 629,740 615,027 Municipal Levy 262,486 262,486 187,849 Total Revenue 865,686 892,226 802,876 Expenses: Clean Water Act Enforcement 60,000 53,402 44,792 Drinking Water Protection 63,200 56,666 101,050 Large Scale Fill 5,000 -1,327 MOU, Flood Plain Mapping 1,000 1,005 7,500 Planning and Development Services 808,200 824,656 585,392 937,400 935,729 740,061 Internal Fee for Service (71,714)(61,797)(37,776) Total Expenses 865,686 873,932 702,285 Net Surplus for the Year $-$18,294 $100,591 22Page 116 Kawartha Region Conservation Authority Integrated Watershed Management Schedule B For the year ended December 31, 2023 with comparative information for 2022 2023 Budget (Note 2)2023 Actual 2022 Actual Revenue: Fee for Service $1,000 $175 $452 Grants and Donations 10,300 9,635 3,231 Innovation Hub 34,500 57,352 36,534 MNRF Transfer Payment 24,600 24,640 24,640 Total Program Generated Revenue 70,400 91,802 64,857 Municipal Levy 481,765 479,185 529,628 Total Revenue 552,165 570,987 594,485 Expenses: Environmental Information Services 123,950 125,866 81,587 Environmental Monitoring 338,000 332,119 298,064 Flood & Water Level Monitoring 16,350 23,317 77,612 Watershed Management & Support 162,900 140,042 122,576 Innovation Hub 28,350 36,402 18,145 669,550 657,746 597,984 Internal Fee for Service (119,965)(103,062)(90,405) Total Expenses 549,585 554,684 507,579 Net Surplus for the Year $2,580 $16,303 $86,906 23Page 117 Kawartha Region Conservation Authority Stewardship and Conservation Lands Schedule C For the year ended December 31, 2023 with comparative information for 2022 2023 Budget (Note 2)2023 Actual 2022 Actual Revenue: Conservation Areas $58,950 $63,160 $54,638 Donations 15,000 2,957 8,011 Education 4,300 12,691 1,852 Grants 18,000 23,318 96,275 Restoration Management 40,000 10,477 91,051 Total Program Generated Revenue 136,250 112,603 251,827 Municipal Levy 253,849 253,849 229,687 Total Revenue 390,099 366,452 481,514 Expenses: Dewey Island 100 -- Education Program 1,300 12,454 5,700 Fleetwood Creek Natural Area 8,700 8,560 9,295 Habitat Comp. Program 40,000 8,728 20,445 Ken Reid CA 49,050 69,692 62,138 Land Management & Support 429,000 487,230 417,976 Pigeon River Headwaters 10,450 4,867 8,644 Windy Ridge CA 3,750 3,038 2,099 542,350 594,569 526,297 Internal Fee for Service (152,251)(132,758)(87,742) Total Expenses 390,099 461,811 438,555 Net Surplus (Deficit) for the Year $-$(95,359)$42,959 24Page 118 Kawartha Region Conservation Authority Corporate Services Schedule D For the year ended December 31, 2023 with comparative information for 2022 2023 Budget (Note 2)2023 Actual 2022 Actual Revenue: Donations $-$2,124 $2,308 Grants and Other Revenue 24,200 32,758 39,974 Investment Income 62,600 173,699 75,643 Total Program Generated Revenue 86,800 208,581 117,925 Municipal Levy 673,930 673,930 706,161 Capital Levy Contribution 45,875 45,875 - Total Revenue 806,605 928,386 824,086 Expenses: Amortization 60,000 78,833 75,190 Communication 138,200 157,529 140,178 Corporate Services 785,850 761,210 674,193 (Gain)/Loss on Disposal of TCA -(2,764)5,016 Internal Recovery - Vehicle & Equipment Pool (25,000)4,958 (5,556) 959,050 999,766 889,021 Internal Fee for Service (168,720)(144,947)(120,539) Total Expenses 790,330 854,819 768,482 Net Surplus for the Year $16,275 $73,567 $55,604 25Page 119 Kawartha Region Conservation Authority Special Projects Schedule E For the year ended December 31, 2023 with comparative information for 2022 2023 Budget (Note 2)2023 Actual 2022 Actual Revenue: Climate Change Funding $18,000 $18,000 $18,000 Fee for Service 38,400 35,574 14,038 Grants and Other 139,000 310,425 161,674 Product Sales 27,000 31,844 30,358 Total Program Generated Revenue 222,400 395,843 224,070 General Benefiting 40,000 33,018 6,160 Special Benefiting 1,009,900 702,840 499,357 Special Operating 106,900 67,625 45,059 Total Revenue 1,379,200 1,199,326 774,646 Expenses: CKL - Flood Plain Mapping -57,875 12,483 CKL - Implementation Science 160,200 127,585 95,925 CKL - Implementation Stewardship 316,900 295,843 249,358 CKL - Lake Dalrymple 69,300 56,612 65,322 CKL & Durham - Tree Planting Program 187,700 217,192 136,193 Durham - ECF 106,900 97,484 55,999 Durham - Implementation Science 83,020 80,360 49,662 Durham - Implementation Stewardship 65,800 49,768 47,259 Durham - LSEP 41,580 51,980 33,666 Durham - Watershed Planning 27,300 28,234 22,620 Digitization Project 15,000 11,353 160 Monitoring Strategy 25,000 10,176 - Trent Lakes - Flood Plain Mapping 250,300 52,850 - Total Expenses 1,349,000 1,137,312 768,647 Net Surplus for the Year $30,200 $62,014 $5,999 26Page 120 Kawartha Region Conservation Authority Continuity of Reserves Schedule F For the year ended December 31, 2023 with comparative information for 2022 2023 Balance, December 31, 2022 Appropriation (to) from Operations Additions Balance, December 31, 2023 Unrestricted $857,599 $50,840 $-$908,439 Capital Assets Acquisitions 538,765 --538,765 Conservation Initiatives 113,355 --113,355 Externally Restricted Durham East Cross Forest Conservation Area 39,600 --39,600 Windy Ridge Conservation Area 22,826 (788)-22,038 Ken Reid Conservation Area 89,450 --89,450 Scugog Land Acquisitions 133,664 (7,479)-126,185 1,795,259 42,573 -1,837,832 Capital Reserve 3,604,787 55,199 -3,659,986 $5,400,046 $97,772 $-$5,497,818 2022 Balance, December 31, 2021 Appropriation (to) from Operations Additions Balance, December 31, 2022 Unrestricted $706,295 $151,304 $-$857,599 Capital Asset Acquisitions 400,532 138,233 -538,765 Conservation Initiatives 83,594 29,761 -113,355 Externally Restricted Durham East Cross Forest Conservation Area 39,600 --39,600 Windy Ridge Conservation Area 24,124 (1,298)-22,826 Ken Reid Conservation Area 89,450 --89,450 Scugog Land Acquisitions 133,664 --133,664 1,477,259 318,000 -1,795,259 Capital Reserve 3,625,200 (20,413)-3,604,787 $5,102,459 $297,587 $-$5,400,046 27Page 121