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HomeMy WebLinkAboutADMIN-15-88 REPORT #2 " TOWN OF NEWCASTLE N t REPORT File # Res. # MEETING: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE DATE: SEPTEMBER 19 1988 ADMIN. 15-88 REPORT #: FILE #: SLI ECT: DEVELOPMENT CHARGE POLICY STUDY RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That the "Development Charge Policy Study" for the Town of Newcastle prepared by the firm of C. N. Watson and Associates Limited and attached to report ADMIN. 15 - 88 be received; 2. That the Executive Summary contained on pages (i) to (iii) of the "Development Charge o icy Study" be endorsed; 3. That the Policy Recommendations contained on pages (iv) to (vii) of the "Deve opment C5arge Po icy Study" be approved; 4. That -the by-laws required to implement the Policy Recommendations contained in recommendation #3 above be passed; an 5. That the revised development charges contained in recommendation #3 above be applicable to all development agreements inclusive of all subdivisions, severances and condominiums, to be entered into effective immediately. ADMIN. 15 - 88 PAGE 2 REPORT: Recently, the firm of C. N. Watson and Associates Limited was engaged by the Town of Newcastle in order to update the Town 's Financial Analysis and Development Strategy undertaken in 1981. This Study entitled "Development Change Policy Study" is provided as an attachment to Report ADMIN. 15 - 88. Specifically, the purpose of the present study was to undertake an examination of the financial implications on the Town of anticipated future development and to determine the appropriate level of contributions to be charged against new i development. This was based on projected requirements of various municipal services to accommodate future development. In so doing, the Town can ensure that the cost of providing new capital facilities required by new growth will not impact unduly on the existing residents and property owners in the Town. The Town' s consultant in the attached study has articulated in a systematic fashion the approach taken, the basis for imposing development charges, the Town's development prospects and the Town's capital expenditure requirements in order to arrive at a justifiable and defensible development charge policy. In short, the policy recommendations largely reflect the recent development charges approved by Council and represent an equitable demand for services across the Town by taking into account the average number of persons per unit expected (refer to pages ( iv) and (v) of the attached report) . In addition, the policy recommendations address aspects related to urban versus rural requirements and place emphasis on financing growth on all development in a more reasonable and equitable fashion in line with and similar to the application of the mill rate. As a result, the development charges recommended for single detached and semi-detached units versus townhouses are established at $2,819 and $2,588 respectively for new units in the urban areas of Courtice, Newcastle Village and Bowmanville and $2,743 and $2,518 respectively for new units elsewhere in the Town. i I ADMIN. 15 - 88 PAGE 3 Furthermore, it is recommended that development charges for the smaller more affordable apartment units (1 bedroom and bachelor) be reduced based on the lower expected occupancy in terms of persons per unit. As a result, a distinction between the development charge for smaller apartments (1 bedroom and bachelor) versus larger apartments (2 bedrooms or more) is recommended at $1,067 and $2,003 respectively for new units within the urban areas of Courtice, Newcastle Village and Bowmanville and $1,038 and $1,949 respectively for new units elsewhere in the Town. The growth related capital costs outlined in Table S-1 on page (v) of the study indicate the specific categories for development charges to be collected. These are listed in the following specifying -the relative percentage of the development charges recommended for each category. CAPITAL EXPENDITURE ITEM PER CAPITA COST (%) Civic Administration and Museums 5.6 Public Works 45.5 Community Services 38.3 r Libraries 4.6 Fire Protection 6.0 100% It is recommended above that the appropriate by-laws be passed in order to reflect this distribution as recommended by the Town's Consultant. I ADMIN. 15 - 88 PAGE 4 The study attached to this report has been undertaken by the Town 's Consultant in conjunction with the considerable and very important input of the Town's senior management staff. After careful review and scrutiny of the study finalized by the consultant, the senior management team concurs with the recommendations contained in report ADMIN. 15 - 88. All recommendations are respectfully submitted for the consideration and approval of the General Purpose and Administration Committee and Council . In addition, it is realized that the study will require up-date on a more regular basis in order to maintain the appropriateness of the prevailing development charges. The Town' s consultant will be available to make a brief presentation regarding the study. Respectfully submitted, Lawrenc E tseff, Chief A i trative Officer Attachment: "Development Charge Policy Study"