HomeMy WebLinkAboutSeptember 01, 2022 - Public - Development ChargesTHE CORPORATION OF THE MUNICIPALITY OF BAYHAM
PUBLIC MEETING AGENDA
MUNICIPAL OFFICE
56169 Heritage Line, Straffordville, ON
Council Chambers
Thursday, September 1, 2022
6:00 p.m.
This Meeting will be held in person and
will not be live-streamed or recorded to YouTube.
1. CALL TO ORDER
2. DISCLOSURES OF PECUNIARY INTEREST & THE GENERAL NATURE THEREOF
3. PURPOSE OF THE MEETING
This is a public meeting of Council being held under section 12 of the Development Charges
Act, 1997, as amended. The purpose of the meeting is to give the public an opportunity to ask
questions, provide comments, and make representations on the development charges
background study and proposed by-law.
4. PRESENTATION
A. Municipality of Bayham Development Charges Background Study
5. PUBLIC PARTICIPATION
6. ADJOURNMENT
Watson & Associates Economists Ltd.
905-272-3600
August 5, 2022 info@watsonecon.ca
Development Charges Background
Study
Municipality of Bayham
________________________
Watson & Associates Economists Ltd.
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Table of Contents
Page
Executive Summary ....................................................................................................... i
1. Introduction ...................................................................................................... 1-1
1.1 Purpose of this Document ....................................................................... 1-1
1.2 Summary of the Process ......................................................................... 1-2
1.3 Changes to the D.C.A.: Bill 108, 138, 197 and 213 ............................... 1-3
1.3.1 Bill 108: More Homes, More Choice Act – An Act to Amend
Various Statutes with Respect to Housing, Other
Development, and Various Matters ............................................ 1-3
1.3.2 Bill 138: Plan to Build Ontario Together Act, 2019 .................... 1-4
1.3.3 Bill 197: COVID-19 Economic Recovery Act .............................. 1-4
1.3.4 Bill 213: Better for People, Smarter for Business Act, 2020 ....... 1-7
2. Anticipated Development in the Municipality of Bayham ............................ 2-2
2.1 Treatment Capacity Forecast .................................................................. 2-2
3. The Approach to the Calculation of the Charge ........................................... 3-1
3.1 Introduction ............................................................................................. 3-1
3.2 Services Potentially Involved .................................................................. 3-1
3.3 Increase in the Need for Service ............................................................. 3-1
3.4 Local Service Policy ................................................................................ 3-6
3.5 Capital Forecast ...................................................................................... 3-6
3.6 Treatment of Credits ............................................................................... 3-7
3.7 Classes of Services ................................................................................ 3-8
3.8 Existing Reserve Funds .......................................................................... 3-8
3.9 Deductions .............................................................................................. 3-9
3.9.1 Reduction Required by Level of Service Ceiling ........................ 3-9
3.9.2 Reduction for Uncommitted Excess Capacity .......................... 3-10
3.9.3 Reduction for Benefit to Existing Development ........................ 3-10
3.9.4 Reduction for Anticipated Grants, Subsidies and Other
Contributions ............................................................................ 3-11
Table of Contents (Cont’d)
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3.10 Municipal-wide vs. Area Rating ............................................................. 3-12
3.11 Allocation of Development .................................................................... 3-12
3.12 Asset Management ............................................................................... 3-12
3.13 Transit ................................................................................................... 3-12
3.14 Long-Term Capital and Operating Cost Examination ........................... 3-14
4. D.C.-Eligible Cost Analysis by Service .......................................................... 4-2
4.1 Introduction ............................................................................................. 4-2
4.2 Wastewater Capital Costs and D.C. Calculation ..................................... 4-2
4.2.1 Wastewater Capital .................................................................... 4-2
4.2.2 Wastewater D.C. Calculations ................................................... 4-3
4.3 Water Connection Fees Transition ......................................................... 4-5
4.3.1 Water Charges – Port Burwell .................................................... 4-5
4.3.2 Water Charges – Vienna ............................................................ 4-6
4.3.3 Water Charges – Richmond ....................................................... 4-7
5. D.C. Policy Recommendations and D.C. By-law Rules ................................ 5-1
5.1 Introduction ............................................................................................. 5-1
5.2 D.C. By-law Structure ............................................................................. 5-2
5.3 D.C. By-law Rules ................................................................................... 5-2
5.3.1 Payment in any Particular Case ................................................. 5-2
5.3.2 Determination of the Amount of the Charge ............................... 5-3
5.3.3 Application to Redevelopment of Land (Demolition and
Conversion) ................................................................................ 5-3
5.3.4 Exemptions (full or partial) ......................................................... 5-3
5.3.5 Phasing in .................................................................................. 5-4
5.3.6 Timing of Collection ................................................................... 5-4
5.3.7 Indexing ..................................................................................... 5-5
5.3.8 The Applicable Areas ................................................................. 5-5
5.4 Other D.C. By-law Provisions ................................................................. 5-5
5.4.1 Categories of Services for Reserve Fund and Credit
Purposes .................................................................................... 5-5
5.4.2 By-law In-force Date .................................................................. 5-5
5.4.3 Minimum Interest Rate Paid on Refunds and Charged for
Inter-Reserve Fund Borrowing ................................................... 5-6
5.4.4 Area Rating ................................................................................ 5-6
5.5 Other Recommendations ........................................................................ 5-6
6. By-law Implementation ................................................................................... 6-1
6.1 Public Consultation Process ................................................................... 6-1
6.1.1 Introduction ................................................................................ 6-1
6.1.2 Public Meeting of Council........................................................... 6-1
Table of Contents (Cont’d)
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6.1.3 Other Consultation Activity ......................................................... 6-1
6.1.4 Anticipated Impact of the Charge on Development .................... 6-2
6.2 Implementation Requirements ................................................................ 6-3
6.2.1 Introduction ................................................................................ 6-3
6.2.2 Notice of Passage ...................................................................... 6-3
6.2.3 By-law Pamphlet ........................................................................ 6-3
6.2.4 Appeals ...................................................................................... 6-4
6.2.5 Complaints ................................................................................. 6-4
6.2.6 Credits ....................................................................................... 6-5
6.2.7 Front-Ending Agreements .......................................................... 6-5
6.2.8 Severance and Subdivision Agreement Conditions ................... 6-5
Appendix A D.C. Reserve Fund Policy ................................................................... A-1
Appendix B Local Service Policy ............................................................................ B-1
Appendix C Asset Management Plan ..................................................................... C-1
Appendix D Proposed D.C. By-law ......................................................................... D-1
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List of Acronyms and Abbreviations
Acronym Full Description of Acronym
A.M.P. Asset management plan
D.C. Development charge
D.C.A. Development Charges Act, 1997, as amended
F.I.R. Financial Information Return
G.F.A. Gross floor area
LPAT Local Planning Appeal Tribunal
OLT Ontario Land Tribunal
O.M.B. Ontario Municipal Board
O.P.A. Official Plan Amendment
O. Reg. Ontario Regulation
P.P.U. Persons per unit
S.D.E. Single detached equivalent
S.D.U. Single detached unit
sq.ft. square foot/feet
Executive Summary
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Executive Summary
1. The report provided herein represents the Development Charges (D.C.)
Background Study for the Municipality of Bayham required by the Development
Charges Act, 1997, as amended (D.C.A.). This report has been prepared in
accordance with the methodology required under the D.C.A. The contents
include the following:
• Chapter 1 – Overview of the legislative requirements of the Act;
• Chapter 2 – Anticipated development in the Municipality;
• Chapter 3 – Approach to calculating the D.C.;
• Chapter 4 – D.C.-eligible cost analysis by service;
• Chapter 5 – D.C. policy recommendations and rules; and
• Chapter 6 – By-law implementation.
2. D.C.s provide for the recovery of growth-related capital expenditures from new
development. The D.C.A. is the statutory basis to recover these charges. The
methodology is detailed in Chapter 3; a simplified summary is provided below.
a) Identify amount, type and location of growth.
b) Identify servicing needs to accommodate growth.
c) Identify capital costs to provide services to meet the needs.
d) Deduct:
• Grants, subsidies and other contributions;
• Benefit to existing development;
• Amounts in excess of 10-year historical service calculation;
• D.C. reserve funds (where applicable);
e) Net costs are then allocated between residential and non-residential benefit.
f) Net costs divided by growth to provide the D.C.
3. The D.C. process needs to address a number of items that were established
through the Smart Growth for Our Communities Act, 2015 (Bill 73). These items
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have been incorporated throughout the report and in the draft by-law, as
necessary. These items include:
a) Area-rating: Council must consider the use of area-specific charges.
b) Asset Management Plan for New Infrastructure: The D.C. background study
must include an asset management plan (A.M.P.) that deals with all assets
proposed to be funded, in whole or in part, by D.C.s. The A.M.P. must show
that the assets are financially sustainable over their full lifecycle.
c) 60-day Circulation Period: The D.C. background study must be released to
the public at least 60-days prior to passage of the D.C. by-law.
d) Timing of Collection of Development Charges: The D.C.A. now requires
D.C.s to be collected at the time of the first building permit.
4. Further changes to the D.C.A. were introduced through four bills passed in the
Ontario legislature: Bill 108, Bill 138, Bill 197, and Bill 213. The following
provides a brief summary of the proposed changes.
Bill 108: More Homes, More Choice: Ontario’s Housing Supply Action Plan
In May 2019, the Province introduced Bill 108, More Homes, More Choice Act,
2019 which would make changes to the current D.C. legislation. The Bill was
passed and given Royal Assent on June 6, 2019. While the legislation has been
passed, much of the detailed changes were to be implemented by Regulation,
however, these changes were not implemented (subject to Bill 197 discussed
later). The following items are currently in effect:
a) Effective January 1, 2020, rental housing and institutional developments shall
pay D.C.s in six (6) equal annual payments commencing at first occupancy.
Non-profit housing developments shall pay D.C.s in 21 equal annual
payments. Interest may be charged on the instalments, and any unpaid
amounts inclusive of interest payable shall be added to the property tax roll
and collected in the same manner as taxes.
b) Effective January 1, 2020, the D.C. amount for all developments occurring
within two years of a Site Plan or Zoning By-law Amendment planning
approval (for applications made after January 1, 2020), shall be
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determined based on the D.C. by-law in effect on the day of Site Plan or
Zoning By-law Amendment application.
Bill 138: Plan to Build Ontario Together Act, 2019
On November 6, 2019, the Province released Bill 138 which provided further
amendments to the D.C.A. and Planning Act. This Bill received Royal Assent on
December 10, 2019, and was proclaimed which resulted in sections related to
the D.C.A. (Schedule 10) becoming effective on January 1, 2020. With respect
to the D.C.A., this Bill removed instalment payments for commercial and
industrial developments that were originally identified in Bill 108.
Bill 197: COVID-19 Economic Recovery Act, 2020
In March 2020, Canada was impacted by the COVID-19 global pandemic. As a
result, the economy was put into a state of emergency in an effort to slow the
spread of the virus. In response, the Province tabled legislation on July 8, 2020
which amended a number of Acts, including the D.C.A. and the Planning Act.
With Bill 197, many changes proposed in Bill 108 have now been revised. With
respect to the above noted changes from Bill 108, the following changes are
provided in Bill 197:
• Eligible Services: The list of eligible services for the D.C. has now been
expanded to include most services eligible under the D.C.A. prior to Bill
108.
• Mandatory 10% Deduction: The mandatory 10% deduction is removed
(consistent with Bill 108). This applies to all D.C.-eligible services.
• Community Benefits Charges: a lower or single-tier municipality may, by
by-law impose a C.B.C. to pay for the capital costs for formerly-eligible
D.C. services in addition to parkland dedication and bonus zoning
contributions. A C.B.C. strategy has not been examined as part of this
study process.
Bill 213: Better for People, Smarter for Business Act, 2020
On December 8, 2020, Bill 213 received Royal Assent. One of the changes of
the Bill that took effect upon Royal Assent included amending the Ministry of
Training, Colleges and Universities Act by introducing a new section that would
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exempt the payment of D.C.s for developments of land intended for use by a
university that receives operating funds from the Government.
These changes to the D.C.A. were proclaimed on September 18, 2020 and are
further discussed in section 1.3 of this report.
5. The Municipality is undertaking a D.C. public process and anticipates passing a
new by-law for eligible services. The mandatory public meeting has been set for
September 1, 2022 with adoption of the by-law anticipated for October 6, 2022.
6. The Municipality does not currently impose D.C.s. However, the Municipality
does impose water and wastewater connection charges under their fees and
charges by-law, which recovers the infrastructure costs that the Municipality
originally constructed for both existing and future developments. This report is to
assist the Municipality in transitioning the existing connection fees under a D.C.
by-law in order to appropriately impose the charge to new developments.
Charges have been provided on an area-specific basis for water and wastewater
services. The corresponding charges are presented in Table ES-1. These rates
are submitted to Council for its consideration.
7. Considerations by Council – The background study represents the service needs
arising from the potential capacity of the treatment plant.
Council will consider the findings and recommendations provided in the report
and, in conjunction with public input, approve such policies and rates it deems
appropriate. These directions will refine the draft D.C. by-law which is appended
in Appendix D. These decisions may include:
• adopting the charges and policies recommended herein;
• considering additional exemptions to the by-law; and
• considering reductions in the charge by class of development (obtained by
removing certain services on which the charge is based and/or by a
general reduction in the charge).
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Table ES-1
Schedule of Development Charges
Settlement Area
Singles and
Semi-Detached Multiples
Apartments 2+
Bedrooms
Apartments 1
Bedroom or less
Port Burwell
Water Services 3,955$ 2,748$ 1,942$ 1,235$
Wastewater Services 11,329$ 7,870$ 5,562$ 3,536$
Total Port Burwell 15,284$ 10,618$ 7,504$ 4,771$
Vienna
Water Services 4,015$ 2,789$ 1,971$ 1,253$
Wastewater Services 12,951$ 8,997$ 6,358$ 4,043$
Total Vienna 16,966$ 11,786$ 8,329$ 5,296$
Straffordville
Wastewater Services 12,951$ 8,997$ 6,358$ 4,043$
Total Straffordville 12,951$ 8,997$ 6,358$ 4,043$
Eden
Wastewater Services 12,951$ 8,997$ 6,358$ 4,043$
Total Eden 12,951$ 8,997$ 6,358$ 4,043$
Richmond
Water Services 13,506$ 9,382$ 6,630$ 4,216$
Total Richmond 13,506$ 9,382$ 6,630$ 4,216$
Report
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Chapter 1
Introduction
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1. Introduction
1.1 Purpose of this Document
This background study has been prepared pursuant to the requirements of the
Development Charges Act, 1997, as amended, (D.C.A.) (section 10) and, accordingly,
recommends development charges (D.C.s) and policies for the Municipality of Bayham.
The Municipality retained Watson & Associates Economists Ltd. (Watson), to undertake
the D.C. study process throughout 2022. Watson worked with Municipal staff in
preparing the D.C. analysis and policy recommendations.
The Municipality does not currently impose D.C.s. However, the Municipality does
impose water and wastewater connection charges under their fees and charges by-law,
which recovers the infrastructure costs that the Municipality originally constructed for
both existing and future developments. This report is to assist the Municipality in
transitioning the existing connection fees under a D.C. by-law in order to appropriately
impose the charge to new developments.
This D.C. background study, containing the proposed D.C. by-law, will be distributed to
members of the public in order to provide interested parties with sufficient background
information on the legislation, the study’s recommendations, and an outline of the basis
for these recommendations.
This report has been prepared, in the first instance, to meet the statutory requirements
applicable to the Municipality’s D.C. background study, as summarized in Chapter 3. It
also addresses the requirement for “rules” (contained in Chapter 5) and the proposed
by-law to be made available as part of the approval process (included as Appendix D).
In addition, the report is designed to set out sufficient background on the legislation
(Chapter 3), and the growth anticipated within the Municipality (Chapter 2), to make the
exercise understandable to those who are involved.
Finally, it addresses post-adoption implementation requirements (Chapter 6) which are
critical to the successful application of the new policy.
The chapters in the report are supported by Appendices containing the data required to
explain and substantiate the calculation of the charge. A full discussion of the statutory
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requirements for the preparation of a background study and calculation of a D.C. is
provided herein.
1.2 Summary of the Process
The public meeting required under section 12 of the D.C.A. has been scheduled for
September 1, 2022. Its purpose is to present the study to the public and to solicit public
input. The meeting is also being held to answer any questions regarding the study’s
purpose, methodology, and the proposed modifications to the Municipality’s D.C.s.
In accordance with the legislation, the background study and proposed D.C. by-law will
be available for public review on August 5, 2022.
The process to be followed in finalizing the report and recommendations includes:
• consideration of responses received prior to, at, or immediately following the
public meeting; and
• finalization of the report and Council consideration of the by-law subsequent to
the public meeting.
Figure 1-1 outlines the proposed schedule to be followed with respect to the D.C. by-law
adoption process.
Figure 1-1
Schedule of Key D.C. Process Dates for the Municipality of Bayham
Schedule of Study Milestone Dates
1. Data collection, staff review, engineering
work, D.C. calculations and policy work Summer 2021 to Spring 2022
2. Background study and proposed by-law
available to public August 5, 2022
3. Public meeting advertisement placed in
newspaper(s) No later than August 11, 2022
4. Public meeting of Council September 1, 2022
5. Council considers adoption of background
study and passage of by-law October 6, 2022
6. Newspaper notice given of by-law passage By 20 days after passage
7. Last day for by-law appeal 40 days after passage
8. Municipality makes pamphlet available
(where by-law not appealed) By 60 days after in force date
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1.3 Changes to the D.C.A.: Bill 108, 138, 197 and 213
1.3.1 Bill 108: More Homes, More Choice Act – An Act to Amend
Various Statutes with Respect to Housing, Other Development,
and Various Matters
On May 2, 2019, the Province introduced Bill 108, which proposes changes to the
D.C.A. The Bill was introduced as part of the Province’s “More Homes, More Choice:
Ontario's Housing Supply Action Plan.” The Bill received Royal Assent on June 6,
2019.
While having received Royal Assent, many of the amendments to the D.C.A. would not
come into effect until they are proclaimed by the Lieutenant Governor (many of these
changes were revised through Bill 197). At the time of writing, the following provisions
have been proclaimed:
• Effective January 1, 2020, rental housing and institutional developments will pay
D.C.s in six equal annual payments commencing at occupancy. Non-profit
housing developments will pay D.C.s in 21 equal annual payments. Interest may
be charged on the instalments, and any unpaid amounts may be added to the
property and collected as taxes.
• Effective January 1, 2020, the D.C. amount for all developments occurring within
2 years of a Site Plan or Zoning By-law Amendment planning approval (for
application submitted after this section is proclaimed), shall be determined based
on the D.C. in effect on the day of Site Plan or Zoning By-law Amendment
application. If the development is not proceeding via these planning approvals,
then the amount is determined the earlier of the date of issuance of a building
permit.
On February 28, 2020, the Province released updated draft regulations related to the
D.C.A. and the Planning Act. A summary of these changes to take effect upon
proclamation by the Lieutenant Governor is provided below:
• Changes to Eligible Services – Prior to Bill 108, the D.C.A. provided a list of
ineligible services whereby municipalities could include growth related costs for
any service that was not listed. With Bill 108, the changes to the D.C.A. would
now specifically list the services that are eligible for inclusion in the by-law.
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Furthermore, the initial list of eligible services under Bill 108 was limited to "hard
services", with the "soft services" being removed from the D.C.A. These services
would be considered as part of a new community benefits charge (discussed
below) imposed under the Planning Act. As noted in the next section this list of
services has been amended through Bill 197.
• Mandatory 10% Deduction – The amending legislation would remove the
mandatory 10% deduction for all services that remain eligible under the D.C.A.
• Remaining Services to be Included in a New Community Benefits Charge
(C.B.C.) Under the Planning Act – It is proposed that a municipality may, by by-
law, impose a C.B.C. against land to pay for the capital costs of facilities,
services and matters required because of development or redevelopment in the
area to which the by-law applies. The C.B.C. was proposed to include formerly
eligible D.C. services that are not included in the above listing, in addition to
parkland dedication and bonus zoning contributions.
1.3.2 Bill 138: Plan to Build Ontario Together Act, 2019
On November 6, 2019, the Province release Bill 138 which provided further
amendments to the D.C.A. and Planning Act. This Bill received Royal Assent on
December 10, 2019 and was proclaimed which resulted in sections related to the D.C.A.
(Schedule 10) becoming effective on January 1, 2020. The amendments to the D.C.A.
included removal of instalment payments for commercial and industrial developments
that were originally included in Bill 108.
1.3.3 Bill 197: COVID-19 Economic Recovery Act
In response to the global pandemic that began affecting Ontario in early 2020, the
Province released Bill 197 which provided amendments to a number of Acts, including
the D.C.A. and Planning Act. This Bill also revised some of the proposed changes
identified in Bill 108. Bill 197 was tabled on July 8, 2020, received Royal Assent on July
21, 2020, and was proclaimed on September 18, 2020. The following provides a
summary of the changes.
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1.3.3.1 D.C.-Related Changes
List of D.C.-Eligible Services
As noted above, under Bill 108 some services were to be included under the D.C.A. and
some would be included under the C.B.C. authority. Bill 197, however, revised this
proposed change and has included all services (with some exceptions) under the
D.C.A. These services are as follows:
• Water supply services, including distribution and treatment services.
• Wastewater services, including sewers and treatment services.
• Storm water drainage and control services.
• Services related to a highway.
• Electrical power services.
• Toronto-York subway extension.
• Transit services.
• Waste diversion services.
• Policing services.
• Fire protection services.
• Ambulance services.
• Library services.
• Long-term care services
• Parks and recreation services, but not the acquisition of land for parks.
• Public health services.
• Child care and early years services.
• Housing services.
• Provincial Offences Act services.
• Services related to emergency preparedness.
• Services related to airports, but only in the Regional Municipality of Waterloo.
• Additional services as prescribed.
Classes of Services – D.C.
Pre-Bill 108/197 legislation (i.e. D.C.A., 1997) allowed for categories of services to be
grouped together into a minimum of two categories (90% and 100% services).
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The Act (as amended) repeals and replaces the above with the four following
subsections.
• A D.C. by-law may provide for any eligible service or capital cost related to any
eligible service to be included in a class, set out in the by-law.
• A class may be composed of any number or combination of services and may
include parts or portions of the eligible services or parts or portions of the capital
costs in respect of those services.
• A D.C. by-law may provide for a class consisting of studies in respect of any
eligible service whose capital costs are described in paragraphs 5 and 6 of
section 5 of the D.C.A.
• A class of service set out in the D.C. by-law is deemed to be a single service with
respect to reserve funds, use of monies, and credits.
As well, the removal of the 10% deduction for soft services under Bill 108 has been
maintained.
Note: An initial consideration of “class” appears to mean any group of services.
10-Year Planning Horizon
The 10-year planning horizon has been removed for all services except transit.
1.3.3.2 C.B.C.-Related Changes
C.B.C. Eligibility
The C.B.C. is limited to lower-tier and single-tier municipalities; upper-tier municipalities
will not be allowed to impose this charge. O. Reg. 509/20 was filed on September 18,
2020. This regulation provides for the following:
• A maximum rate will be set as a percentage of the market value of the land the
day before building permit issuance. The maximum rate is set at 4%. The
C.B.C. may only be imposed on developing or redeveloping buildings which have
a minimum height of five stories and contain no less than 10 residential units
• Bill 197 states that before passing a C.B.C. by-law, the municipality shall prepare
a C.B.C. strategy that (a) identifies the facilities, services, and matters that will be
funded with C.B.C.s; and (b) complies with any prescribed requirements.
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• Only one C.B.C. by-law may be in effect in a local municipality at a time.
Furthermore, a C.B.C. may be imposed with respect to the services listed in subsection
2 (4) of the D.C.A. (eligible services), “provided that the capital costs that are intended
to be funded by the community benefits charge are not capital costs that are intended to
be funded under a development charge by-law.”
Currently, the Municipality is not undertaking a C.B.C. process.
1.3.4 Bill 213: Better for People, Smarter for Business Act, 2020
On December 8, 2020, Bill 213 received Royal Assent. One of the changes of the Bill
that took effect upon Royal Assent included amending the Ministry of Training, Colleges
and Universities Act by introducing a new section that would exempt the payment of
D.C.s for developments of land intended for use by a university that receives operating
funds from the Government. As a result, this mandatory exemption will be included in
the D.C. by-law.
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Chapter 2
Anticipated Development in
the Municipality of Bayham
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2. Anticipated Development in the Municipality of
Bayham
2.1 Treatment Capacity Forecast
On July 28, 2000, municipal staff brought forth a report to Council outlining
recommendations for undertaking an expansion to the Municipality’s wastewater
infrastructure system for the areas of Port Burwell, Vienna, Straffordville, and Eden.
The report identified both the existing and potential population of the Municipality based
on anticipated flows and capacity of the expanded wastewater infrastructure. This
provided for an initial estimated service population of 3,314 people.
Subsequent to the July 2000 staff report, the Municipality retained Cyril J. Demeyere
Limited (CJDL) to complete an updated sanitary sewage study to assess the system’s
reserve capacity. Their assessment was published on May 4, 2020 and included a
review of the sewage treatment plant capacity, trunk sewer capacities and individual
pumping station capacities within the Villages of Port Burwell, Vienna, Straffordville and
Eden. Based on CJDL’s examination of the Municipality’s growth projections and
treatment performance data, a revised service population was provided, which equals
3,650 by 2030.
The potential service population provided by CJDL will be used as the basis of the D.C.
calculations provided in Chapter 4.
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Chapter 3
The Approach to the
Calculation of the Charge
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3. The Approach to the Calculation of the Charge
3.1 Introduction
This chapter addresses the requirements of subsection 5 (1) of the D.C.A. with respect
to the establishment of the need for service which underpins the D.C. calculation.
These requirements are illustrated schematically in Figure 3-1.
3.2 Services Potentially Involved
Table 3-1 lists the full range of municipal services that are provided within the
Municipality.
A number of these services are defined in subsection 2 (4) of the D.C.A. as being
ineligible for inclusion in D.C.s. These are shown as “ineligible” on Table 3-1. Two
ineligible costs defined in subsection 5 (3) of the D.C.A. are “computer equipment” and
“rolling stock with an estimated useful life of (less than) seven years.” In addition, local
roads are covered separately under subdivision agreements and related means (as are
other local services). Services that are potentially eligible for inclusion in the
Municipality’s D.C. are indicated with a “Yes.”
3.3 Increase in the Need for Service
The D.C. calculation commences with an estimate of “the increase in the need for
service attributable to the anticipated development,” for each service to be covered by
the by-law. There must be some form of link or attribution between the anticipated
development and the estimated increase in the need for service. While the need could
conceivably be expressed generally in terms of units of capacity, subsection 5 (1) 3,
which requires that Municipal Council indicate that it intends to ensure that such an
increase in need will be met, suggests that a project-specific expression of need would
be most appropriate.
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Figure 3-1
The Process of Calculating a Development Charge under the Act
that must be followed
8. Specified Local Services
The Process of Calculating a Development Charge under the Act that must be followed
AnticipatedDevelopment 1.
Estimated Increase in
Need for Service
Ceiling Re:
Increased Need
Needs That Will
Be Met
Examination of the Long-term Capital and Operating Costs for Capital Infrastructure
D.C. Needs
By Service
Less:
Uncommitted Excess Capacity
Less: Benefit To Existing
Development
Less: Grants, Subsidies and Other Contributions
D.C. By-law(s)
Spatial
Applicability
D.C. Net Capital Costs
Costs for new development vs.
existing development for the
term of the by-law and the
balance of the period
Amount of the Charge
By Type of Development(including apportionment of costs - residential and non-residential)
Financing,
Inflation and
Investment
Considerations
3.4.
5.
6.
11.
12.
15.
16.
13.
14.
9.
Subdivision
Agreements
and Consent
Provisions
Consideration of exemptions,
phase-ins, etc.
1
3
2
Non-Transit
Services
Historical Service Standard 4a.
Transit ServicesForward-looking Service
Standard 4b.
Asset Management Plan for All Capital Projects to be Funded by D.C.s 7.
Non-Transit Services Financially
Sustainable 7a.
Transit Services Detailed
Requirements 7b.
10.
Municipal Services
2.
Eligible Services
Ineligible Services
Tax Base, User
Rates, etc.
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Table 3-1
Categories of Municipal Services to be Addressed as Part of the Calculation
Eligibility for
Inclusion in the
D.C. Calculation
Description
Yes Municipality provides the service – service has been
included in the D.C. calculation.
No Municipality provides the service – service has not been
included in the D.C. calculation.
n/a Municipality does not provide the service.
Ineligible Service is ineligible for inclusion in the D.C. calculation.
Categories of
Municipal Services
Eligibility
for
Inclusion
in the D.C.
Calculation
Service Components
Maximum
Potential
D.C.
Recovery
%
1. Services
Related to a
Highway
No 1.1 Arterial roads 100
No 1.2 Collector roads 100
No 1.3 Bridges, culverts and
roundabouts
100
No 1.4 Local municipal roads 0
No 1.5 Traffic signals 100
No 1.6 Sidewalks and streetlights 100
No 1.7 Active transportation 100
2. Other
Transportation
Services
No 2.1 Transit vehicles[1] & facilities 100
No 2.2 Other transit infrastructure 100
Ineligible 2.3 Municipal parking spaces -
indoor
0
Ineligible 2.4 Municipal parking spaces -
outdoor
0
No 2.5 Works yards 100
No 2.6 Rolling stock[1] 100
n/a 2.7 Ferries 100
No 2.8 Airport 100
3. Stormwater
Drainage and
Control Services
No 3.1 Main channels and drainage
trunks
100
No 3.2 Channel connections 100
No 3.3 Retention/detention ponds 100
1 with 7+ year lifetime
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Categories of
Municipal Services
Eligibility
for
Inclusion
in the D.C.
Calculation
Service Components
Maximum
Potential
D.C.
Recovery
%
4. Fire Protection
Services
No 4.1 Fire stations 100
No 4.2 Fire pumpers, aerials and
rescue vehicles[1]
100
No 4.3 Small equipment and gear 100
5. Parks and
Recreation
Services
Ineligible 5.1 Acquisition of land for parks,
woodlots and E.S.A.s
0
No 5.2 Development of area
municipal parks
100
No 5.3 Development of district parks 100
No 5.4 Development of municipal-
wide parks
100
No 5.5 Development of special
purpose parks
100
No 5.6 Parks rolling stock[1] and
yards
100
No 5.7 Arenas, indoor pools, fitness
facilities, community centres,
etc. (including land)
100
No 5.8 Recreation vehicles and
equipment[1]
100
6. Library Services No 6.1 Public library space (incl.
furniture and equipment)
100
n/a 6.2 Library vehicles[1] 100
No 6.3 Library materials 100
7. Emergency
Preparedness
Services
No 7.1 Facility space (incl. furniture
and equipment)
100
No 7.2 Vehicles[1] 100
No 7.3 Equipment 100
8. Provision of
Cultural,
Entertainment
and Tourism
Facilities and
Convention
Centres
Ineligible 8.1 Cultural space (e.g., art
galleries, museums and
theatres)
0
Ineligible 8.2 Tourism facilities and
convention centres
0
1with 7+ year lifetime
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Categories of
Municipal Services
Eligibility
for
Inclusion
in the D.C.
Calculation
Service Components
Maximum
Potential
D.C.
Recovery
%
9. Wastewater
Services
Yes 9.1 Treatment plants 100
Yes 9.2 Sewage trunks 100
n/a 9.3 Local systems 0
Yes 9.4 Vehicles and equipment[1] 100
10. Water Supply
Services
Yes 10.1 Treatment plants 100
Yes 10.2 Distribution systems 100
n/a 10.3 Local systems 0
Yes 10.4 Vehicles and equipment[1] 100
11. Waste
Management
Services
Ineligible 11.1 Landfill collection, transfer
vehicles and equipment
0
Ineligible 11.2 Landfills and other disposal
facilities
0
No 11.3 Waste diversion facilities 100
No 11.4 Waste diversion vehicles and
equipment[1]
100
12. Policing
Services
No 12.1 Policing detachments 100
No 12.2 Policing rolling stock[1] 100
No 12.3 Small equipment and gear 100
13. Long-term Care n/a 13.1 Long-term care space 100
n/a 13.2 Vehicles[1] 100
14. Child Care and
Early Years
No 14.1 Child care space 100
No 14.2 Vehicles[1] 100
15. Public Health No 15.1 Health department space 100
No 15.2 Health department vehicles[1] 100
16. Housing
Services
No 16.1 Housing services space 100
No 16.2 Vehicles[1] 100
17. Provincial
Offences Act
(P.O.A.)
No 17.1 P.O.A. space 100
18. Social Services Ineligible 18.1 Social service space 0
19. Ambulance
No 19.1 Ambulance station space 100
No 19.2 Vehicles[1] 100
No 19.3 Equipment and gear 100
1 with 7+ year lifetime
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Categories of
Municipal Services
Eligibility
for
Inclusion
in the D.C.
Calculation
Service Components
Maximum
Potential
D.C.
Recovery
%
20. Hospital
Provision
Ineligible 20.1 Hospital capital contributions 0
21. Provision of
Headquarters
for the General
Administration
of Municipalities
and Area
Municipal
Boards
Ineligible 21.1 Office space 0
Ineligible 21.2 Office furniture 0
Ineligible 21.3 Computer equipment 0
22. Other Services
No 22.1 Studies in connection with
acquiring buildings, rolling
stock, materials and
equipment, and improving
land[1] and facilities, including
the D.C. background study
cost
0-100
No 22.2 Interest on money borrowed
to pay for growth-related
capital
0-100
[1] same percentage as service component to which it pertains
3.4 Local Service Policy
Some of the need for services generated by additional development consists of local
services related to a plan of subdivision. As such, they will be required as a condition of
subdivision agreements or consent conditions. The Municipality’s Local Service Policy
is provided in Appendix B.
3.5 Capital Forecast
Paragraph 7 of subsection 5 (1) of the D.C.A. requires that “the capital costs necessary
to provide the increased services must be estimated.” The Act goes on to require two
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potential cost reductions and the regulation sets out the way in which such costs are to
be presented. These requirements are outlined below.
These estimates involve capital costing of the increased services discussed above.
This entails costing actual projects or the provision of service units, depending on how
each service has been addressed.
The capital costs include:
a) costs to acquire land or an interest therein (including a leasehold interest);
b) costs to improve land;
c) costs to acquire, lease, construct or improve buildings and structures;
d) costs to acquire, lease or improve facilities, including rolling stock (with a useful
life of 7 or more years), furniture and equipment (other than computer
equipment), materials acquired for library circulation, reference, or information
purposes;
e) interest on money borrowed to pay for the above-referenced costs;
f) costs to undertake studies in connection with the above-referenced matters; and
g) costs of the D.C. background study.
In order for an increase in need for service to be included in the D.C. calculation,
Municipal Council must indicate “that it intends to ensure that such an increase in need
will be met” (subsection 5 (1) 3). This can be done if the increase in service forms part
of a Council-approved Official Plan, capital forecast, or similar expression of the
intention of Council (O. Reg. 82/98 section 3). The capital program contained herein
reflects the Municipality’s approved and proposed capital budgets and master servicing/
needs studies.
3.6 Treatment of Credits
Section 8, paragraph 5, of O. Reg. 82/98 indicates that a D.C. background study must
set out “the estimated value of credits that are being carried forward relating to the
service.” Subsection 17, paragraph 4, of the same regulation indicates that “the value
of the credit cannot be recovered from future D.C.s,” if the credit pertains to an ineligible
service. This implies that a credit for eligible services can be recovered from future
D.C.s. As a result, this provision should be made in the calculation, in order to avoid a
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funding shortfall with respect to future service needs. There are no outstanding credit
obligations to be included in the D.C. calculations.
3.7 Classes of Services
Section 7 of the D.C.A. states that a D.C. by-law may provide for any D.C.-eligible
service or the capital costs with respect to those services. Furthermore, a class may be
composed of any number or combination of services and may include parts or portions
of each D.C.-eligible service. With respect to growth-related studies, section 7 (3) of the
D.C.A. states that:
“For greater certainty, a development charge by-law may provide for a
class consisting of studies in respect of any service listed in subsection 2
(4) whose capital costs are described in paragraphs 5 and 6 of subsection
5 (3).”
These provisions allow for services to be grouped together to create a class for the
purposes of the D.C. by-law and D.C. reserve funds. The D.C. calculations and by-law
does not currently identify any services to be grouped as a class.
3.8 Existing Reserve Funds
Section 35 of the D.C.A. states that:
“The money in a reserve fund established for a service may be spent only
for capital costs determined under paragraphs 2 to 7 of subsection 5 (1).”
There is no explicit requirement under the D.C.A. calculation method set out in
subsection 5 (1) to net the outstanding reserve fund balance as part of making the D.C.
calculation; however, section 35 does restrict the way in which the funds are used in
future.
For services that are subject to a per capita based, service level “cap,” the reserve fund
balance should be applied against the development-related costs for which the charge
was imposed once the project is constructed (i.e. the needs of recent growth). This cost
component is distinct from the development-related costs for the next 10-year period,
which underlie the D.C. calculation herein.
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The alternative would involve the Municipality spending all reserve fund monies prior to
renewing each by-law, which would not be a sound basis for capital budgeting. Thus,
the Municipality will use these reserve funds for the Municipality’s cost share of
applicable development-related projects, which are required but have not yet been
undertaken, as a way of directing the funds to the benefit of the development that
contributed them (rather than to future development, which will generate the need for
additional facilities directly proportionate to future growth).
Since the Municipality does not currently have a D.C. by-law, no adjustments for
reserve fund balances are required.
3.9 Deductions
The D.C.A. potentially requires that five deductions be made to the increase in the need
for service. These relate to:
• the level of service ceiling;
• uncommitted excess capacity;
• benefit to existing development;
• anticipated grants, subsidies, and other contributions; and
• costs related to services that are ineligible as per the D.C.A.
The requirements behind each of these reductions are addressed below.
3.9.1 Reduction Required by Level of Service Ceiling
This is designed to ensure that the increase in need included in section 3.3 does “not
include an increase that would result in the level of service [for the additional
development increment] exceeding the average level of the service provided in the
municipality over the 10-year period immediately preceding the preparation of the
background study” (D.C.A., subsection 5 (1) 4). O. Reg. 82/98 (section 4) goes further
to indicate that “both the quantity and quality of a service shall be taken into account in
determining the level of service and the average level of service.”
In many cases, this can be done by establishing a quantity measure in terms of units as
floor area, land area, or road length per capita and a quality measure, in terms of the
average cost of providing such units based on replacement costs, engineering
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standards, or recognized performance measurement systems, depending on
circumstances. When the quantity and quality factors are multiplied together, they
produce a measure of the level of service, which meets the requirements of the Act, i.e.
cost per unit.
With respect to water and wastewater services, these service level calculations are not
required as per Section 4(3) of O. Reg 82/98.
3.9.2 Reduction for Uncommitted Excess Capacity
Paragraph 5 of subsection 5 (1) requires a deduction from the increase in the need for
service attributable to the anticipated development that can be met using the
Municipality’s “excess capacity,” other than excess capacity which is “committed.”
“Excess capacity” is undefined, but in this case must be able to meet some or all of the
increase in need for service, in order to potentially represent a deduction. The
deduction of uncommitted excess capacity from the future increase in the need for
service would normally occur as part of the conceptual planning and feasibility work
associated with justifying and sizing new facilities, e.g. if a road widening to
accommodate increased traffic is not required because sufficient excess capacity is
already available, then widening would not be included as an increase in need, in the
first instance.
3.9.3 Reduction for Benefit to Existing Development
Subsection 5 (1) 6 of the D.C.A. provides that, “The increase in the need for service
must be reduced by the extent to which an increase in service to meet the increased
need would benefit existing development.” The general guidelines used to consider
benefit to existing development included:
• the repair or unexpanded replacement of existing assets that are in need of
repair;
• an increase in average service level of quantity or quality (compare water as an
example);
• the elimination of a chronic servicing problem not created by growth; and
• providing services where none previously existed (generally considered for water
or wastewater services).
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This step involves a further reduction in the need, by the extent to which such an
increase in service would benefit existing development. The level of service cap in
subsection 3.9.1 is related but is not the identical requirement. Sanitary, storm, and
water trunks are highly localized to growth areas and can be more readily allocated in
this regard than other services such as services related to a highway, which do not have
a fixed service area.
Where existing development has an adequate service level which will not be tangibly
increased by an increase in service, no benefit would appear to be involved. For
example, where expanding existing library facilities simply replicates what existing
residents are receiving, they receive very limited (or no) benefit as a result. On the
other hand, where a clear existing service problem is to be remedied, a deduction
should be made accordingly.
In the case of services such as recreation facilities, community parks, libraries, etc., the
service is typically provided on a Municipal-wide system basis. For example, facilities of
the same type may provide different services (i.e. leisure pool vs. competitive pool),
different programs (i.e. hockey vs. figure skating), and different time availability for the
same service (i.e. leisure skating available on Wednesdays in one arena and Thursdays
in another). As a result, residents will travel to different facilities to access the services
they want at the times they wish to use them, and facility location generally does not
correlate directly with residence location. Even where it does, displacing users from an
existing facility to a new facility frees up capacity for use by others and generally results
in only a very limited benefit to existing development. Furthermore, where an increase
in demand is not met for a number of years, a negative service impact to existing
development is involved for a portion of the planning period.
3.9.4 Reduction for Anticipated Grants, Subsidies and Other
Contributions
This step involves reducing the capital costs necessary to provide the increased
services by capital grants, subsidies, and other contributions (including direct developer
contributions required due to the local service policy) made or anticipated by Council
and in accordance with various rules such as the attribution between the share related
to new vs. existing development. That is, some grants and contributions may not
specifically be applicable to growth or where Council targets fundraising as a measure
to offset impacts on taxes (O. Reg. 82/98, section 6).
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3.10 Municipal-wide vs. Area Rating
This step involves determining whether all of the subject costs are to be recovered on a
uniform municipal-wide basis or whether some or all are to be recovered on an area-
specific basis. Under the amended D.C.A., it is now mandatory to “consider” area rating
of services (providing charges for specific areas and services), however, it is not
mandatory to implement area rating. Further discussion is provided in subsection 5.4.4.
3.11 Allocation of Development
This step involves relating the costs involved to anticipated development for each period
under consideration and using allocations between residential and non-residential
development and between one type of development and another, to arrive at a schedule
of charges.
3.12 Asset Management
The legislation requires that a D.C. background study must include an asset
management plan (A.M.P.) (subsection 10 (2) c. 2). The A.M.P. must deal with all
assets that are proposed to be funded, in whole or in part, by D.C.s. The current
regulations provide very extensive and specific requirements for the A.M.P. related to
transit services (as noted in the subsequent subsection); however, they are silent with
respect to how the A.M.P. is to be provided for all other services. As part of any A.M.P.,
the examination should be consistent with the municipality’s existing assumptions,
approaches, and policies on the asset management planning. This examination has
been included in Appendix C.
3.13 Transit
The D.C.A. provides for the following matters for Transit:
• The background study requires the following in regard to transit costs (as per
subsection 8 (2) of the regulations):
o The calculations that were used to prepare the estimate for the planned
level of service for transit services, as mentioned in subsection 5.2 (3) of
the Act.
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o An identification of the portion of the total estimated capital cost relating to
the transit services that would benefit,
i. the anticipated development over the 10-year period immediately
following the preparation of the background study, or
ii. the anticipated development after the 10-year period immediately
following the preparation of the background study.
o An identification of the anticipated excess capacity that would exist at the
end of the 10-year period immediately following the preparation of the
background study.
o An assessment of ridership forecasts for all modes of transit services
proposed to be funded by the D.C. over the 10-year period immediately
following the preparation of the background study, categorized by
development types, and whether the forecast ridership will be from
existing or planned development.
o An assessment of the ridership capacity for all modes of transit services
proposed to be funded by the development charge over the 10-year period
immediately following the preparation of the background study.
• A forward-looking service standard (as per subsection 6.1 (2) of the regulations)
requires the following:
o The service is a discrete service.
o No portion of the service that is intended to benefit anticipated
development after the 10-year period immediately following the
preparation of the background study may be included in the estimate.
o No portion of the service that is anticipated to exist as excess capacity at
the end of the 10-year period immediately following the preparation of the
background study may be included in the estimate.
• A very detailed asset management strategy and reporting requirements
(subsection 6.1 (3) of the regulation) that includes lifecycle costs, action plans
that will enable the assets to be sustainable, a summary of how to achieve the
proposed level of service, discussion on procurement measures and risk are
required.
The Municipality has not included transit as part of the D.C. calculations. Therefore, the
above calculation and reporting requirements are not required.
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3.14 Long-Term Capital and Operating Cost Examination
As a requirement of the Development Charges Act, 1997, as amended, under
subsection 10 (2) (c), an analysis must be undertaken to assess the long-term capital
and operating cost impacts for the capital infrastructure projects identified within the
D.C. background study. The capital and operating impacts of the water and wastewater
projects identified in Chapter 4 have been assessed as part of the Municipality’s water
and wastewater rate study. With respect to lifecycle costs, the Municipality has identified
these works through the 2020 Asset Management Plan.
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Chapter 4
D.C.-Eligible Cost Analysis by
Service
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4. D.C.-Eligible Cost Analysis by Service
4.1 Introduction
This chapter outlines the basis for calculating eligible costs for the D.C.s to be applied
on an area-specific bases. In each case, the required calculation process set out in
subsection 5 (1) paragraphs 2 to 7 in the D.C.A. and described in Chapter 3 was
followed in determining D.C.-eligible costs.
As mentioned earlier, the Municipality does not currently impose D.C.s. However, the
Municipality does impose water and wastewater connection charges under their fees
and charges by-law, which recovers the infrastructure costs that the Municipality
originally constructed for both existing and future developments. It is the intent of the
Municipality to transition the existing connection fees under a D.C. by-law in order to
appropriately impose the charge to new developments. This chapter provides the
background to the capital projects, as well as the historical fees that will be transitioned.
4.2 Wastewater Capital Costs and D.C. Calculation
4.2.1 Wastewater Capital
As described in Chapter 2, the Municipality undertook an expansion to the wastewater
system in the early 2000s for the areas of Port Burwell, Vienna, Straffordville, and Eden.
Staff report 2000-27, dated July 28, 2000, provided the background analysis and
recommendations for upgrading the municipality’s wastewater infrastructure.
The report outlined the cost of the wastewater project (valued in 2000 dollars), which
totals $19,383,500. Of this amount, $15,875,346 was to be funded by grants from the
Province under the Provincial Water Protection Fund. Therefore, the net amount to be
funded by the Municipality is $3,508,154.
Since that time, the Municipality has imposed wastewater connection fees which are
currently under by-law 2019-025, as amended, for the four serviced areas noted above.
The fees are a combination of “per unit” charges and a “per foot” charge based on the
frontage of the property, which are to recover the Municipality’s share of the wastewater
project capital cost that was constructed over twenty years ago.
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As part of the analysis to be undertaken in this D.C. study, the connection fees with
respect to the recovery of the wastewater capital infrastructure are being converted to a
D.C., which will be imposed to new development/units. As the D.C. by-law is proposed
to be considered in 2022, this requires an examination of the capital costs in current
year (2022) dollars.
Therefore, the capital amount noted above has been indexed to 2022 dollars based on
the Statistics Canada Non-Residential Building Construction Price Index, which is
estimated to be 154%. This provides a net capital cost for the wastewater project of
$8,902,900. As this wastewater project is to provide servicing to all customers within
the four areas noted above, the cost is to be spread equally between the existing and
future service population identified in Chapter 2 (3,650 people).
4.2.2 Wastewater D.C. Calculations
The basis for calculating the wastewater cost per capita is presented below. The
following provides for the calculation of the costs on a per capita basis using the
servicing targets identified in Chapter 2:
Figure 4-1
Per Capita Calculations
The calculation of the capital cost per capita is based on the capital works provided in
section 4.2.1. As noted earlier, the servicing targets of 3,650 have been provided by
CJDL. Whether the system expands in the number of users resulting from new growth,
or from existing homes that are serviced and connected to the system, the capacity is
provided for them equally.
Figure 4-2 provides the average occupancies for low, medium and high-density housing
for all households in Bayham. This information is based on 2016 Census data and is
used in the calculation of the D.C. as presented in Figure 4-3.
For calculations provided herein, the following persons per unit will be use:
Description Amounts
Net Capital Costs 8,902,907$
Existing and Future Service Population 3,650
Cost per Capita 2,439$
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Figure 4-2
Persons Per Unit (P.P.U.) Summary
Based on the above persons per unit, the following charges are calculated for
residential units:
Figure 4-3
Wastewater D.C. Calculation
In addition to the calculated wastewater charges provided above, the Municipality also
imposes a wastewater connection fee based on a per foot of property frontage. The
current amounts by area are provided below:
• Port Burwell: $32.53 per foot
• Vienna: $51.84 per foot
• Straffordville: $51.84 per foot
• Eden: $51.84 per foot
These charges are currently imposed through a Fees and Charges By-law (2019-025,
as amended) under the Municipal Act, 2001. It is proposed that these charges are to be
transitioned under a D.C. by-law in order to be appropriately imposed for new
developments. As D.C.s are typically imposed on a per unit basis, the frontage charge
is recommended to be converted to a charge per unit. In speaking with Municipal staff,
the average frontage of the residential unit will be assumed to be 84 feet. Therefore,
the frontage charges identified above will be multiplied by 84 feet. This provides a
Persons Per Unit by Residential Type P.P.U.
Singles and Semi-Detached 3.524
Multiples 2.448
Apartments 2+ Bedrooms 1.730
Apartments 1 Bedroom or less 1.100
Unit Type
Singles and
Semi-Detached Multiples
Apartments 2+
Bedrooms
Apartments 1
Bedroom or less
P.P.U.3.524 2.448 1.730 1.100
Wastewater Charge Per
Capita 2,439$ 2,439$ 2,439$ 2,439$
Wastewater Development
Charge 8,596$ 5,971$ 4,220$ 2,683$
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single detached frontage charge of $2,733 for Port Burwell and $4,355 for Vienna,
Straffordville, and Eden.
Based on the information noted above, Figure 4-4 summarizes the total Wastewater
D.C.s, by unit type, for the four service areas.
Figure 4-4
Proposed Wastewater D.C.s
4.3 Water Connection Fees Transition
At present, there are special area charges in effect (in addition to the wastewater
charges presented in section 4.2) which provide for the specific recovery of water works
within the Port Burwell, Vienna, and Richmond Water Service Areas. These charges
are currently imposed through the Municipal Act, 2001 and are contained within the
Municipality’s Fees and Charges By-law (2019-025, as amended) and the Water Works
Fee By-law (2011-046). With respect to new undeveloped lots, it would be appropriate
to provide the same charges through the D.C. by-law. Therefore, these charges are
being incorporated as part of the D.C. process in order to impose similar charges on
new units.
4.3.1 Water Charges – Port Burwell
Within the Port Burwell area, the water system required capital upgrades in order to
service future units on undeveloped lots. The upgrades included the construction of a
new watermain, pumps, meters, chambers, and associated equipment.
Description
Singles and
Semi-Detached Multiples
Apartments 2+
Bedrooms
Apartments 1
Bedroom or less
Port Burwell
Wastewater Services 11,329$ 7,870$ 5,562$ 3,536$
Vienna
Wastewater Services 12,951$ 8,997$ 6,358$ 4,043$
Straffordville
Wastewater Services 12,951$ 8,997$ 6,358$ 4,043$
Eden
Wastewater Services 12,951$ 8,997$ 6,358$ 4,043$
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The fees for the water infrastructure are a combination of a flat “per unit” charges and a
“per foot” charge based on the frontage of the property. The fees are summarized
below:
• By-law 2011-46:
o $1,388.64 per unit
• By-law 2019-025, as amended:
o $1,645.79 per unit
o $10.97 per foot of frontage
The fees outlined above are proposed to be included as a fee under the D.C. by-law.
Similar to wastewater, the average frontage of the residential unit will be assumed to be
84 feet. This would provide a frontage charge of $921 per single detached dwelling.
Therefore, in addition to the other per unit fees, the water D.C. to be included for Port
Burwell is $3,955 and shall be payable prior to building permit issuance.
Figure 4-5 outlines the proposed D.C. charges based on the residential unit type using
the P.P.U. information in Figure 4-2.
Figure 4-5
Port Burwell – Proposed Water D.C.s
4.3.2 Water Charges – Vienna
Similar to Port Burwell, the water system in Vienna required capital upgrades in order to
service future units on undeveloped lots. The upgrades included the construction of a
new watermain, pumps, meters, chambers, and associated equipment.
The fees for the water infrastructure are a combination of a flat “per unit” charges and a
“per foot” charge based on the frontage of the property. The fees are summarized
below:
• By-law 2011-46:
o $1,388.64 per unit
Description
Singles and
Semi-Detached Multiples
Apartments 2+
Bedrooms
Apartments 1
Bedroom or less
Port Burwell
Water Services 3,955$ 2,748$ 1,942$ 1,235$
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• By-law 2019-025, as amended:
o $1,684.07 per unit
o $11.21 per foot of frontage
The fees outlined above are proposed to be included as a fee under the D.C. by-law.
As mentioned earlier, the average frontage of the residential unit will be assumed to be
84 feet. This would provide a frontage charge of $942 per single detached dwelling.
Therefore, in addition to the other per unit fees, the water D.C. to be included for Vienna
is $4,015 and shall be payable prior to building permit issuance.
Figure 4-6 outlines the proposed D.C. charges based on the residential unit type using
the P.P.U. information in Figure 4-2.
Figure 4-6
Vienna – Proposed Water D.C.s
4.3.3 Water Charges – Richmond
Within the area of Richmond, the Municipality imposes a capital charge under Part 12 of
the Municipal Act, 2001 to recover the cost of constructing a new municipal drinking
water system. The capital charge is to be collected from both existing and new users
that will benefit from the water system. Similar to the previous sections, the current
charge for this system is being included as part of the D.C. by-law in order to impose
the fee on new units.
This capital charge is a flat rate of $13,506 per unit and shall be payable prior to
building permit issuance. This amount has been converted to a charge based on the
residential unit type by using the P.P.U. information in Figure 4-2 and is presented in
Figure 4-7.
Description
Singles and
Semi-Detached Multiples
Apartments 2+
Bedrooms
Apartments 1
Bedroom or less
Vienna
Water Services 4,015$ 2,789$ 1,971$ 1,253$
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Figure 4-7
Richmond – Proposed Water D.C.s
Description
Singles and
Semi-Detached Multiples
Apartments 2+
Bedrooms
Apartments 1
Bedroom or less
Richmond
Water Services 13,506$ 9,382$ 6,630$ 4,216$
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Chapter 5
D.C. Policy Recommendations
and D.C. By-law Rules
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5. D.C. Policy Recommendations and D.C. By-law
Rules
5.1 Introduction
Subsection 5 (1) 9 states that rules must be developed:
“to determine if a development charge is payable in any particular case
and to determine the amount of the charge, subject to the limitations set
out in subsection (6).”
Paragraph 10 of the section goes on to state that the rules may provide for exemptions,
phasing in and/or indexing of D.C.s.
Subsection 5 (6) establishes the following restrictions on the rules:
• the total of all D.C.s that would be imposed on anticipated development must not
exceed the capital costs determined under subsection 5 (1) 2-7 for all services
involved;
• if the rules expressly identify a type of development, they must not provide for it
to pay D.C.s that exceed the capital costs that arise from the increase in the
need for service for that type of development; however, this requirement does not
relate to any particular development; and
• if the rules provide for a type of development to have a lower D.C. than is
allowed, the rules for determining D.C.s may not provide for any resulting
shortfall to be made up via other development.
With respect to “the rules,” section 6 states that a D.C. by-law must expressly address
the matters referred to above re subsection 5 (1) paragraphs 9 and 10, as well as how
the rules apply to the redevelopment of land.
The rules provided are based on the Municipality’s existing policies, with consideration
for the changes to the D.C.A. resulting from Bills 108, 197 and 213. There are items
under consideration at this time, however, and these may be refined prior to adoption of
the by-law.
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5.2 D.C. By-law Structure
It is recommended that:
• the Municipality uses an area-specific D.C. calculation for the water and
wastewater services (contained within this report); and
• one municipal D.C. by-law be used for the services referenced above.
5.3 D.C. By-law Rules
The following subsections set out the recommended rules governing the calculation,
payment and collection of D.C.s in accordance with section 6 of the D.C.A.
It is recommended that the following sections provide the basis for the D.C.s.:
5.3.1 Payment in any Particular Case
In accordance with the D.C.A., subsection 2 (2), a D.C. be calculated, payable, and
collected where the development requires one or more of the following:
“(a) the passing of a zoning by-law or of an amendment to a zoning by-
law under section 34 of the Planning Act;
(b) the approval of a minor variance under section 45 of the Planning
Act;
(c) a conveyance of land to which a by-law passed under subsection 50
(7) of the Planning Act applies;
(d) the approval of a plan of subdivision under section 51 of the Planning
Act;
(e) a consent under section 53 of the Planning Act;
(f) the approval of a description under section 9 of the Condominium
Act, 1998; or
(g) the issuing of a permit under the Building Code Act, 1992 in relation
to a building or structure.”
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5.3.2 Determination of the Amount of the Charge
The following conventions be adopted:
1) Costs allocated to residential uses will be assigned to different types of
residential units based on the average occupancy for each housing type
constructed during the previous decade.
5.3.3 Application to Redevelopment of Land (Demolition and
Conversion)
Where, as a result of the redevelopment of land, a building or structure existing on the
same land within 60 months prior to the date of payment of D.C.s in regard to such
redevelopment was, or is to be demolished, in whole or in part, or converted from one
principal use to another principal use on the same land, in order to facilitate the
redevelopment, the D.C.s otherwise payable with respect to such redevelopment shall
be reduced by the following amounts:
1) the number of dwelling units demolished/converted multiplied by the relevant
D.C.s when the D.C.s are calculated with respect to the redevelopment;
2) the G.F.A. of the building demolished/converted multiplied by the relevant D.C.s
when the D.C.s are calculated with respect to the redevelopment.
The credit can, in no case, exceed the amount of D.C.s that would otherwise be
payable.
5.3.4 Exemptions (full or partial)
a) Statutory exemptions:
• industrial building additions of up to and including 50% of the existing
G.F.A. (defined in O. Reg. 82/98, section 1) of the building; for industrial
building additions that exceed 50% of the existing G.F.A., only the portion
of the addition in excess of 50% is subject to D.C.s (subsection 4 (3) of the
D.C.A.);
• Bayham municipal facilities, or a local board thereof;
• A board as defined in subsection 1 (1) of the Education Act;
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• residential development in existing buildings: development that results
only in the enlargement of an existing dwelling unit, or that results only in
the creation of up to two additional dwelling units (based on prescribed
limits set out in section 2 of O. Reg. 82/98);
• residential development in new dwellings: development that includes the
creation of up to two detached dwelling units (based on prescribed limits
set out in section 2 of O. Reg. 82/98); and
• land vested in or leased to a university that receives regular and ongoing
operating funds from the government for the purposes of post-secondary
education is exempt from development charges imposed under the
Development Charges Act, 1997 if the development in respect of which
development charges would otherwise be payable is intended to be
occupied and used by the university. 2020, c. 34, Sched. 10, s. 1.
b) Non-statutory exemptions for Council’s Consideration:
• Non-residential development
5.3.5 Phasing in
No provisions for phasing in the D.C. are provided in the D.C. by-law.
5.3.6 Timing of Collection
The D.C.s for all services and classes are payable upon issuance of a building permit
for each dwelling unit, building, or structure, subject to early or late payment
agreements entered into by the Municipality and an owner under section 27 of the
D.C.A.
Rental housing and institutional developments will pay D.C.s in six equal annual
payments commencing at occupancy. Non-profit housing developments will pay D.C.s
in 21 equal annual payments commencing at occupancy. Moreover, the D.C. amount
for all developments occurring within two years of a Site Plan or Zoning By-law
Amendment planning approval (for applications submitted after January 1, 2020), shall
be determined based on the D.C. in effect on the day of the applicable Site Plan or
Zoning By-law Amendment application.
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Instalment payments and payments determined at the time of Site Plan or Zoning By-
law Amendment application are subject to annual interest charges calculated based on
6.5%.
5.3.7 Indexing
Indexing of the D.C.s shall be implemented on a mandatory basis annually commencing
on January 1, 2023 and each January 1st thereafter, in accordance with the Statistics
Canada Quarterly, Non-Residential Building Construction Price Index (Table 18-10-
0135-01)[1] for the most recent year-over-year period.
5.3.8 The Applicable Areas
The charges developed herein provide water and wastewater charges applicable to all
development in the areas of Port Burwell, Vienna, Straffordville, Eden, and Richmond.
5.4 Other D.C. By-law Provisions
It is recommended that:
5.4.1 Categories of Services for Reserve Fund and Credit Purposes
It is recommended that the Municipality create new reserve funds for water and
wastewater services.
Appendix A outlines the reserve fund policies that the Municipality is required to follow
as per the D.C.A.
5.4.2 By-law In-force Date
A by-law under the D.C.A. comes into force on the day after which the by-law is passed
by Council.
[1] O. Reg. 82/98 referenced “The Statistics Canada Quarterly, Construction Price
Statistics, catalogue number 62-007” as the index source. Since implementation,
Statistics Canada has modified this index twice and the above-noted index is the most
current. The draft by-law provided herein refers to O. Reg. 82/98 to ensure traceability
should this index continue to be modified over time.
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5.4.3 Minimum Interest Rate Paid on Refunds and Charged for Inter-
Reserve Fund Borrowing
The minimum interest rate is the Bank of Canada rate on the day on which the by-law
comes into force (as per section 11 of O. Reg. 82/98).
5.4.4 Area Rating
As noted earlier, Bill 73 has introduced two new sections where Council must consider
the use of area specific charges:
1. Subsection 2 (9) of the D.C.A. now requires a municipality to implement area-
specific D.C.s for either specific services which are prescribed and/or for specific
municipalities which are to be regulated (note that at this time, no municipalities
or services are prescribed by the regulations).
2. Subsection 10 (2) c.1 of the D.C.A. requires that “the development charges
background study shall include consideration of the use of more than one
development charge by-law to reflect different needs for services in different
areas.”
In regard to the first item, there are no services or specific municipalities identified in the
regulations which must be area rated. The second item requires Council to consider the
use of area rating.
With respect to the water and wastewater services identified in this D.C. study, the
associated capital works are intended to provide a direct benefit to developments within
the urban settlement areas of Port Burwell, Vienna, Straffordville, Eden, and Richmond.
Therefore, it is recommended that the D.C.s are imposed on an area-specific basis.
5.5 Other Recommendations
It is recommended that Council:
“Adopt the D.C. approach to calculate the services on an area-specific basis for
the Settlement Areas of Port Burwell, Vienna, Straffordville, Eden, and
Richmond;”
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“Confirm the capital and associated rates calculated in former by-laws identified
in Chapter 4 of the D.C. study dated August 5, 2022, as amended (if applicable);”
“Approve the D.C.s Background Study dated August 5, 2022, as amended (if
applicable);"
“Determine that no further public meeting is required;” and
“Approve the D.C. By-law as set out in Appendix D.”
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Chapter 6
By-law Implementation
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6. By-law Implementation
6.1 Public Consultation Process
6.1.1 Introduction
This chapter addresses the mandatory, formal public consultation process (subsection
6.1.2), as well as the optional, informal consultation process (subsection 6.1.3). The
latter is designed to seek the co-operation and participation of those involved, in order
to produce the most suitable policy. Subsection 6.1.4 addresses the anticipated impact
of the D.C. on development from a generic viewpoint.
6.1.2 Public Meeting of Council
Section 12 of the D.C.A. indicates that before passing a D.C. by-law, Council must hold
at least one public meeting, giving at least 20 clear days’ notice thereof, in accordance
with the regulation. Council must also ensure that the proposed by-law and background
report are made available to the public at least two weeks prior to the (first) meeting.
Any person who attends such a meeting may make representations related to the
proposed by-law.
If a proposed by-law is changed following such a meeting, Council must determine
whether a further meeting (under this section) is necessary (i.e. if the proposed by-law
which is proposed for adoption has been changed in any respect, Council should
formally consider whether an additional public meeting is required, incorporating this
determination as part of the final by-law or associated resolution. It is noted that
Council’s decision, once made, is final and not subject to review by a Court or the
Ontario Land Tribunal (OLT) (formerly the Local Planning Appeal Tribunal (LPAT) and
Ontario Municipal Board (OMB)).
6.1.3 Other Consultation Activity
There are three broad groupings of the public who are generally the most concerned
with Municipal D.C. policy:
1. The first grouping is the residential development community, consisting of land
developers and builders, who are typically responsible for generating the majority
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of the D.C. revenues. Others, such as realtors, are directly impacted by D.C.
policy. They are, therefore, potentially interested in all aspects of the charge,
particularly the quantum by unit type, projects to be funded by the D.C. and the
timing thereof, and Municipal policy with respect to development agreements,
D.C. credits, and front-ending requirements.
2. The second public grouping embraces the public at large and includes taxpayer
coalition groups and others interested in public policy.
3. The third grouping is the industrial/commercial/institutional development sector,
consisting of land developers and major owners or organizations with significant
construction plans, such as hotels, entertainment complexes, shopping centres,
offices, industrial buildings, and institutions. Also involved are organizations such
as Industry Associations, the Chamber of Commerce, the Board of Trade, and
the Economic Development Agencies, who are all potentially interested in
Municipal D.C. policy. Their primary concern is frequently with the quantum of
the charge, G.F.A. exclusions such as basements, mechanical or indoor parking
areas, or exemptions and phase-in or capping provisions in order to moderate
the impact.
6.1.4 Anticipated Impact of the Charge on Development
The establishment of sound D.C. policy often requires the achievement of an
acceptable balance between two competing realities. The first is that high non-
residential D.C.s can, to some degree, represent a barrier to increased economic
activity and sustained industrial/commercial growth, particularly for capital intensive
uses. Also, in many cases, increased residential D.C.s can ultimately be expected to be
recovered via higher housing prices and can impact project feasibility in some cases
(e.g. rental apartments).
On the other hand, D.C.s or other Municipal capital funding sources need to be obtained
in order to help ensure that the necessary infrastructure and amenities are installed.
The timely installation of such works is a key initiative in providing adequate service
levels and in facilitating strong economic growth, investment, and wealth generation.
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6.2 Implementation Requirements
6.2.1 Introduction
Once the Municipality has calculated the charge, prepared the complete background
study, carried out the public process, and passed a new by-law, the emphasis shifts to
implementation matters.
These include notices, potential appeals and complaints, credits, front-ending
agreements, subdivision agreement conditions, and finally the collection of revenues
and funding of projects.
The sections that follow overview the requirements in each case.
6.2.2 Notice of Passage
In accordance with section 13 of the D.C.A., when a D.C. by-law is passed, the
Municipal clerk shall give written notice of the passing and of the last day for appealing
the by-law (the day that is 40 days after the day it was passed). Such notice must be
given no later than 20 days after the day the by-law is passed (i.e. as of the day of
newspaper publication or the mailing of the notice).
Section 10 of O. Reg. 82/98 further defines the notice requirements which are
summarized as follows:
• notice may be given by publication in a newspaper which is (in the clerk’s
opinion) of sufficient circulation to give the public reasonable notice, or by
personal service, fax or mail to every owner of land in the area to which the by-
law relates;
• subsection 10 (4) lists the persons/organizations who must be given notice; and
• subsection 10 (5) lists the eight items that the notice must cover.
6.2.3 By-law Pamphlet
In addition to the “notice” information, the Municipality must prepare a “pamphlet”
explaining each D.C. by-law in force, setting out:
• a description of the general purpose of the D.C.s;
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• the “rules” for determining if a charge is payable in a particular case and for
determining the amount of the charge;
• the services to which the D.C.s relate; and
• a description of the general purpose of the Treasurer’s statement and where it
may be received by the public.
Where a by-law is not appealed to the OLT, the pamphlet must be readied within 60
days after the by-law comes into force. Later dates apply to appealed by-laws.
The Municipality must give one copy of the most recent pamphlet without charge to any
person who requests one.
6.2.4 Appeals
Sections 13 to 19 of the D.C.A. set out the requirements relative to making and
processing a D.C. by-law appeal and OLT hearing in response to an appeal. Any
person or organization may appeal a D.C. by-law to the OLT by filing a notice of appeal
with the Municipal clerk, setting out the objection to the by-law and the reasons
supporting the objection. This must be done by the last day for appealing the by-law,
which is 40 days after the by-law is passed.
The Municipality is carrying out a public consultation process, in order to address the
issues that come forward as part of that process, thereby avoiding or reducing the need
for an appeal to be made.
6.2.5 Complaints
A person required to pay a D.C., or his agent, may complain to the Municipality’s
Council imposing the charge that:
• the amount of the charge was incorrectly determined;
• the reduction to be used against the D.C. was incorrectly determined; or
• there was an error in the application of the D.C.
Sections 20 to 25 of the D.C.A. set out the requirements that exist, including the fact
that a complaint may not be made later than 90 days after a D.C. (or any part of it) is
payable. A complainant may appeal the decision of Municipality’s Council to the OLT.
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6.2.6 Credits
Sections 38 to 41 of the D.C.A. set out a number of credit requirements, which apply
where a Municipality agrees to allow a person to perform work in the future that relates
to a service in the D.C. by-law.
These credits would be used to reduce the amount of D.C.s to be paid. The value of
the credit is limited to the reasonable cost of the work which does not exceed the
average level of service. The credit applies only to the service to which the work
relates, unless the Municipality agrees to expand the credit to other services for which a
D.C. is payable.
6.2.7 Front-Ending Agreements
The Municipality and one or more landowners may enter into a front-ending agreement
that provides for the costs of a project which will benefit an area in the Municipality to
which the D.C. by-law applies. Such an agreement can provide for the costs to be
borne by one or more parties to the agreement who are, in turn, reimbursed in future by
persons who develop land defined in the agreement.
Part III of the D.C.A. (sections 44 to 58) addresses front-ending agreements and
removes some of the obstacles to their use which were contained in the D.C.A., 1989.
Accordingly, the Municipality assesses whether this mechanism is appropriate for its
use, as part of funding projects prior to Municipality funds being available.
6.2.8 Severance and Subdivision Agreement Conditions
Section 59 of the D.C.A. prevents a municipality from imposing, directly or indirectly, a
charge related to development or a requirement to construct a service related to
development, by way of a condition or agreement under section 51 or section 53 of the
Planning Act, except for:
• “local services, related to a plan of subdivision or within the area to which the
plan relates, to be installed or paid for by the owner as a condition of approval
under section 51 of the Planning Act;” and
• “local services to be installed or paid for by the owner as a condition of approval
under section 53 of the Planning Act.”
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It is also noted that subsection 59 (4) of the D.C.A. requires that the municipal approval
authority for a draft plan of subdivision under subsection 51 (31) of the Planning Act,
use its power to impose conditions to ensure that the first purchaser of newly subdivided
land is informed of all the D.C.s related to the development, at the time the land is
transferred.
In this regard, if the Municipality in question is a commenting agency, in order to comply
with subsection 59 (4) of the D.C.A. it would need to provide to the approval authority,
information regarding the applicable Municipality D.C.s related to the site.
If the Municipality is an approval authority for the purposes of section 51 of the Planning
Act, it would be responsible to ensure that it collects information from all entities that
can impose a D.C.
The most effective way to ensure that purchasers are aware of this condition would be
to require it as a provision in a registered subdivision agreement, so that any purchaser
of the property would be aware of the charges at the time the title was searched prior to
closing a transaction conveying the lands.
Appendices
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Appendix A
D.C. Reserve Fund Policy
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Appendix A: D.C. Reserve Fund Policy
A.1 Legislative Requirements
The Development Charges Act, 1997, as amended (D.C.A.) requires development
charge (D.C.) collections (and associated interest) to be placed in separate reserve
funds. Sections 33 through 36 of the D.C.A. provide the following regarding reserve
fund establishment and use:
• A municipality shall establish a reserve fund for each service to which the D.C.
by-law relates; section 7, however, allows services to be grouped into categories
of services for reserve fund (and credit) purposes and for classes of services to
be established.
• The municipality shall pay each D.C. it collects into a reserve fund or funds to
which the charge relates.
• The money in a reserve fund shall be spent only for the “capital costs”
determined through the legislated calculation process (as per subsection 5 (1)
2-8).
• Money may be borrowed from the fund but must be paid back with interest
(O. Reg. 82/98, subsection 11 (1) defines this as Bank of Canada rate either on
the day the by-law comes into force or, if specified in the by-law, the first
business day of each quarter).
• D.C. reserve funds may not be consolidated with other municipal reserve funds
for investment purposes and may only be used as an interim financing source for
capital undertakings for which D.C.s may be spent (section 37).
Annually, the Treasurer of the municipality is required to provide Council with a financial
statement related to the D.C. by-law(s) and reserve funds. This statement must be
made available to the public and may be requested to be forwarded to the Minister of
Municipal Affairs and Housing. The D.C.A. does not prescribe how the statement is to
be made available to the public. We would recommend that a resolution of Council
make the statement available on the municipality’s website or upon request.
Subsection 43 (2) and O. Reg. 82/98 prescribe the information that must be included in
the Treasurer’s statement, as follows:
• opening balance;
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• closing balance;
• description of each service and/or service category for which the reserve fund
was established (including a list of services within a service category);
• transactions for the year (e.g. collections, draws) including each asset’s capital
costs to be funded from the D.C. reserve fund and the manner for funding the
capital costs not funded under the D.C. by-law (i.e. non-D.C. recoverable cost
share and post-period D.C. recoverable cost share);
• for projects financed by D.C.s, the amount spent on the project from the D.C.
reserve fund and the amount and source of any other monies spent on the
project;
• amounts borrowed, purpose of the borrowing, and interest accrued during
previous year;
• amount and source of money used by the municipality to repay municipal
obligations to the D.C. reserve fund;
• list of credits by service or service category (outstanding at the beginning of the
year, given in the year, and outstanding at the end of the year by the holder);
• for credits granted under section 14 of the previous D.C.A., a schedule identifying
the value of credits recognized by the municipality, the service to which it applies
and the source of funding used to finance the credit; and
• a statement as to compliance with subsection 59 (1) of the D.C.A., whereby the
municipality shall not impose, directly or indirectly, a charge related to a
development or a requirement to construct a service related to development,
except as permitted by the D.C.A. or another Act.
Based upon the above, Figure 1 and Attachments 1 and 2, set out the format for which
annual reporting to Council should be provided.
A.2 D.C. Reserve Fund Application
Section 35 of the D.C.A. states that:
“The money in a reserve fund established for a service may be spent only
for capital costs determined under paragraphs 2 to 7 of subsection 5(1).”
This provision clearly establishes that reserve funds collected for a specific service are
only to be used for that service, or to be used as a source of interim financing of capital
undertakings for which a D.C. may be spent.
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Figure 1
Municipality of Bayham
Annual Treasurer's Statement of Development Charge Reserve Funds
Services to which the Development Charge Relates
Description Water Services Wastewater Services
Opening Balance, January 1, ________0
Plus:
Development Charge Collections 0
Accrued Interest 0
Repayment of Monies Borrowed from Fund and Associated Interest1 0
Sub-Total 0 0 0
Less:
Amount Transferred to Capital (or Other) Funds2 0
Amounts Refunded 0
Amounts Loaned to Other D.C. Service Category for Interim Financing 0
Credits3 0
Sub-Total 0 0 0
Closing Balance, December 31, ________0 0 0
1 Source of funds used to repay the D.C. reserve fund
2 See Attachment 1 for details
3 See Attachment 2 for details
The Municipality is compliant with s.s. 59.1 (1) of the Development Charges Act , whereby charges are not directly or indirectly
imposed on development nor has a requirement to construct a service related to development been imposed, except as permitted by the
Total
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Attachment 1
Municipality of Bayham
Amount Transferred to Capital (or Other) Funds - Capital Fund Transactions
D.C. Recoverable Cost Share Non-D.C. Recoverable Cost Share
D.C. Forecast Period Post D.C. Forecast Period
Capital Fund Transactions
Gross Capital
Cost
D.C. Reserve
Fund Draw
D.C. Debt
Financing
Grants,
Subsidies
Other
Contributions
Post-Period
Benefit/
Capacity Interim
Financing
Grants,
Subsidies
Other
Contributions
Other
Reserve/Reser
ve Fund Draws
Tax Supported
Operating Fund
Contributions
Rate Supported
Operating Fund
Contributions Debt Financing
Grants,
Subsidies
Other
Contributions
Water Services
Capital Cost A
Capital Cost B
Capital Cost C
Sub-Total - Water $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Wastewater Services
Capital Cost D
Capital Cost E
Capital Cost F
Sub-Total - Wastewater $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Amount Transferred to Operating (or Other) Funds - Operating Fund Transactions
D.C. Reserve Fund Draw Post D.C. Forecast Period Non-D.C. Recoverable Cost Share
Operating Fund Transactions Principal Interest Principal Interest Source Principal Interest Source
Water Services
Capital Cost G
Capital Cost H
Capital Cost I
Sub-Total - Water $0 $0 $0 $0 $0 $0 $0
Wastewater Services
Capital Cost J
Capital Cost K
Capital Cost L
Sub-Total - Wastewater $0 $0 $0 $0 $0 $0 $0
Annual Debt
Repayment
Amount
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Attachment 2
Municipality of Bayham
Statement of Credit Holder Transactions
Credit Holder
Applicable D.C.
Reserve Fund
Credit Balance
Outstanding
Beginning of
Year ________
Additional
Credits
Granted During
Year
Credits Used
by Holder
During Year
Credit Balance
Outstanding
End of Year
________
Credit Holder A
Credit Holder B
Credit Holder C
Credit Holder D
Credit Holder E
Credit Holder F
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Appendix B
Local Service Policy
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Appendix B: Local Service Policy
This Appendix sets out the Municipality’s General Policy Guidelines on Development
Charges (D.C.) and local service funding for Water, Wastewater, and Stormwater
Management Works. The guidelines outline, in general terms, the size and nature of
engineered infrastructure that is considered as a local service, to be emplaced
separately by landowners, pursuant to a development agreement.
The following policy guidelines are general principles by which staff will be guided in
considering development applications. Each application will be considered, however, in
the context of these policy guidelines and subsection 59 (2) of the Development
Charges Act, 1997, S.O. 1997, c. 27 (D.C.A.), on its own merits having regard to,
among other factors, the nature, type and location of the development and any existing
and proposed development in the surrounding area, as well as the location and type of
services required and their relationship to the proposed development and to existing
and proposed development in the area.
A. WATER AND WASTEWATER
1. Underground services (linear infrastructure for water, and sanitary services) within
the road allowance are not included in the cost of road infrastructure and are treated
separately. The responsibility for such services as well as pumping stations, which
are undertaken as part of new developments or redevelopments, will be determined
by the following principles:
2. The costs of the following items shall be direct developer responsibilities as a local
service:
a) providing all underground services internal to the development, including water
and sanitary services;
b) providing service connections from existing underground services to the
development;
c) providing new underground services or upgrading existing underground services
external to the development if the services are required to service the
development. If external services are required by two or more developments, the
developer for the first development will be responsible for the cost of the external
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services and may enter into front-ending/cost-sharing agreements with other
developers independent of the Municipality;
d) providing other facilities required by the development including all associated
features such as landscaping and fencing;
e) water booster pumping stations, reservoir pumping stations and/or sanitary
pumping stations serving individual developments; and
f) existing water booster pumping stations, reservoir pumping station and/or
sanitary pumping station which require upsizing as a result of a development,
shall be upgraded at the expense of the developing landowner.
3. The costs of the following items shall be paid through development charges:
a) external underground services involving trunk infrastructure and pipe sizes for
water and sanitary services that are not identified in 2(c);
b) water, reservoir and/or sanitary pumping stations not required for the individual
development;
c) Water treatment, storage facilities, transmission mains, re-chlorination/sampling
stations and wells associated with municipal service areas to be included within
the D.C.; and
d) Wastewater treatment plants and transmission mains associated with municipal
service areas shall be included in the D.C
B. STORM WATER MANAGEMENT
1. Storm Sewer systems and drainage works that are required, related to, or within the
area needed to support the development, either internal or external to the area to
which the plan relates: Direct developer responsibility under section 59 of the
D.C.A. as a local service.
2. Storm Water facility for quality and/or quantity management:
a) inclusive of land and all associated infrastructure, such as landscaping and
perimeter fencing: Direct developer responsibility under section 59 of the D.C.A.
as a local service.
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b) the over-sizing cost of a facility’s capacity, excluding land, to accommodate
runoff from new, widened, extended or upgraded arterial roadways that are
included in the D.C.: Included as part of Services related to a Highway funded by
the Municipality.
3. Erosion works, inclusive of all restoration requirements, related to, or within the area
needed to support the development: Direct developer responsibility under section
59 of the D.C.A. as a local service.
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Appendix C
Asset Management Plan
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Appendix C: Asset Management Plan
The recent changes to the Development Charges Act, 1997, as amended (D.C.A.) (new
subsection 10 (2) (c.2)) require that the background study must include an asset
management plan (A.M.P.) related to new infrastructure. Subsection 10 (3) of the
D.C.A. provides:
“The asset management plan shall,
(a) deal with all assets whose capital costs are proposed to be
funded under the development charge by-law;
(b) demonstrate that all the assets mentioned in clause (a) are
financially sustainable over their full life cycle;
(c) contain any other information that is prescribed; and
(d) be prepared in the prescribed manner.”
In regard to the above, section 8 of the regulations was amended to include subsections
(2), (3), and (4) which set out specific detailed requirements for transit (only). For all
services except transit, there are no prescribed requirements at this time, thus requiring
the municipality to define the approach to include in the background study.
At a broad level, the A.M.P. provides for the long-term investment in an asset over its
entire useful life along with the funding. The schematic below identifies the costs for an
asset through its entire lifecycle. For growth-related works, the majority of capital costs
will be funded by the development charge (D.C.). Non-growth-related expenditures will
then be funded from non-D.C. revenues as noted below. During the useful life of the
asset, there will be minor maintenance costs to extend the life of the asset along with
additional program-related expenditures to provide the full services to the residents. At
the end of the life of the asset, it will be replaced by non-D.C. financing sources.
It should be noted that with the recent passing of the Infrastructure for Jobs and
Prosperity Act (I.J.P.A.) municipalities are now required to complete A.M.P.s, based on
certain criteria, which are to be completed by 2022 for core municipal services and 2024
for all other services. The amendments to the D.C.A. do not require municipalities to
complete these A.M.P.s (required under I.J.P.A.) for the D.C. background study, rather
the D.C.A. requires that the D.C. background study include information to show the
assets to be funded by the D.C. are sustainable over their full lifecycle.
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Purchase
Install
Commission
Operate
Maintain
Monitor
(Throughout Life
of Assets)
(To End of
Useful Life)
Removal/Decommission
Disposal
New Assets
Replacement Assets
Reserves/Reserve Funds
Debentures
User Fees
Grants
Other
Proceeds on Disposal
Funding of Disposal /
Decommissioning Costs
Operating Budget
Financing Methods
Purchase
Install
Commission
Operate
Maintain
Monitor
(Throughout Life
of Assets)
(To End of
Useful Life)
Removal/Decommission
Disposal
In 2012, the Province developed Building Together: Guide for municipal asset
management plans which outlines the key elements for an A.M.P., as follows:
State of local infrastructure: asset types, quantities, age, condition, financial
accounting valuation and replacement cost valuation.
Desired levels of service: defines levels of service through performance measures
and discusses any external trends or issues that may affect expected levels of service
or the municipality’s ability to meet them (for example, new accessibility standards,
climate change impacts).
Asset management strategy: the asset management strategy is the set of planned
actions that will seek to generate the desired levels of service in a sustainable way,
while managing risk, at the lowest lifecycle cost.
Financing strategy: having a financial plan is critical for putting an A.M.P. into action.
By having a strong financial plan, municipalities can also demonstrate that they have
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made a concerted effort to integrate the A.M.P. with financial planning and municipal
budgeting and are making full use of all available infrastructure financing tools.
Commensurate with the above, the Municipality prepared an A.M.P. in 2020 and
includes an analysis of the water and wastewater assets identified in this D.C. study.
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Appendix D
Proposed D.C. By-law
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The Corporation of the Municipality of Bayham
By-Law Number 2022-___
A by-law to establish development charges for the Municipality of Bayham
WHEREAS subsection 2(1) of the Development Charges Act, 1997 c. 27, as amended
(hereinafter called "the Act") provides that the council of a municipality may pass By-
laws for the imposition of development charges against land for increased capital costs
required because of the need for services arising from development in the area to which
the by-law applies;
AND WHEREAS the Council of The Corporation of the Municipality of Bayham has
given notice on August __, 2022 according to section 12 of the Development Charges
Act, 1997 as amended, of its intention to pass a by-law under Section 2 of the said Act;
AND WHEREAS the Council of the Municipality of Bayham has heard all persons who
applied to be heard no matter whether in objection to, or in support of, the development
charge proposal at a public meeting held on September 1, 2022;
AND WHEREAS the Council of the Municipality of Bayham had before it a report
entitled Development Charge Background Study dated August 5, 2022, prepared by
Watson & Associates Economists Ltd., wherein it is indicated that the development of
any land within the Municipality of Bayham will increase the need for services as
defined herein;
AND WHEREAS the Council of the Municipality of Bayham on September 1, 2022,
approved the applicable Development Charge Background Study, as amended (if
applicable) inclusive of the capital forecast therein, in which certain recommendations
were made relating to the establishment of a development charge policy for the
Municipality of Bayham pursuant to the Development Charges Act, 1997, as amended;
AND WHEREAS the Council of the Municipality of Bayham on September 1, 2022,
determined that no additional public meeting was required to be held as part of the
approval process
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE
MUNICIPALITY OF BAYHAM ENACTS AS FOLLOWS:
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1. INTERPRETATION
1.1 In this By-law the following items shall have the corresponding meanings:
“Act” means the Development Charges Act, as amended, or any
successor thereof;
“accessory use” means where used to describe a use, building or
structure, that the use, building or structure is naturally and normally
incidental, subordinate in purpose of floor area or both, and exclusively
devoted to a principle use, building or structure;
“agricultural use” means a bona fide farming operation;
“ancillary” will have the same definition as “accessory”;
“apartment unit” means any residential dwelling unit within a building
containing three or more dwelling units where access to each residential
unit is obtained through a common entrance or entrances from the street
level and the residential units are connected by an interior corridor;
“bedroom” means a habitable room larger than seven square metres,
including a den, study or other similar area, but does not include a living
room, dining room or kitchen;
“benefiting area” means an area defined by a map, plan or legal
description in a front-ending agreement as an area that will receive a
benefit from the construction of a service;
“board of education” has the same meaning as set out in the Education
Act, R.S.O. 19990, Chap. E.2, as amended, or any successor thereof;
“bona fide farm uses” means the proposed development will qualify as a
farm business operating with a valid Farm Business Registration Number
issued by the Ontario Ministry of Agriculture, Food and Rural Affairs and
be assessed in the Farmland Realty Tax Class by the Ontario Property
Assessment Corporation;
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“Building Code Act” means the Building Code Act, S.O. 1992, as
amended, or any successor thereof;
“cannabis/marijuana facilities" means a building used, designed or
intended for growth, producing, testing, destroying, storing or distribution,
excluding retail sales, of medical marijuana or cannabis authorized by a
license issued by the federal Minister of Health pursuant to section 25 of
the Marihuana for Medical Purposes Regulations, SOR/2013-119, under
the Controlled Drugs and Substances Act, S.C. 1996, c.19;
“class” means a grouping of services combined to create a single service
for the purposes of this by-law and as provided in section 7 of the Act;
“capital cost” means costs incurred or proposed to be incurred by the
Municipality or a local board thereof directly or by others on behalf of and
as authorized by the Municipality or local board,
(a) to acquire land or an interest in land, including a leasehold interest,
(b) to improve land,
(c) to acquire, lease, construct or improve buildings and structures,
(d) to acquire, construct or improve facilities, including:
(i) furniture and equipment other than computer equipment; and
(ii) material acquired for circulation, reference or information
purposes by a library board as defined in the Public Libraries
Act, R.S.O. 19990, Chap. P.44, as amended, or any
successor thereof; and
(iii) rolling stock with an estimated useful life of seven years or
more; and
(e) to undertake studies in connection with any matter under the Act
and any of the matters in clauses (a) to (d) above, including the
development charge background study,
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required for the provision of services designated in this By-law within or
outside the Municipality, including interest on borrowing for those
expenditures under clauses (a) to (e) above that are growth-related;
“commercial” means any non-residential development not defined under
“institutional” or “industrial”;
“Council” means the Council of the Municipality;
“development” means the construction, erection or placing of one or more
buildings or structures on land or the making of an addition or alteration to
a building or structure that has the effect of increasing the size of usability
thereof, and includes redevelopment;
“development charge” means a charge imposed with respect to this By-
law;
“dwelling unit” means any part of a building or structure used, designed or
intended to be used as a domestic establishment in which one or more
persons may sleep and are provided with culinary and sanitary facilities for
their exclusive use;
“existing” means the number, use and size that existed as of the date this
By-law was passed;
“existing industrial building” shall have the same meaning as the term is
defined in the Regulation,
“farm building” means that part of a bona fide farming operation
encompassing barns, silos and other ancillary development to an
agricultural use, but excluding a residential use;
“grade” means the average level of finished ground adjoining a building or
structure at all exterior walls;
“gross floor area” means:
(a) in the case of a residential building or structure, the total area of all
floors above grade of a dwelling unit measured between the outside
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surfaces of exterior walls or between the outside surfaces of
exterior walls and the centre line of party walls dividing the dwelling
unit from any other dwelling unit or other portion of a building; and
(b) in the case of a non-residential building or structure, or in the case
of a mixed-use building or structure with respect to the non-
residential portion thereof, the total area of all building floors above
or below grade measured between the outside surfaces of the
exterior walls, or between the outside surfaces of exterior walls and
the centre line of party walls dividing a non-residential use and a
residential use, except for:
(i) a room or enclosed area within the building or structure
above or below that is used exclusively for the
accommodation of heating, cooling, ventilating, electrical,
mechanical or telecommunications equipment that service
the building;
(ii) loading facilities above or below grade; and
(iii) a part of the building or structure below grade that is used for
the parking of motor vehicles or for storage or other
accessory use;
“industrial” means lands, buildings or structures used or designed or
intended for use for manufacturing, processing, fabricating or assembly of
raw goods, warehousing or bulk storage of goods, and includes office
uses and the sale of commodities to the general public where such uses
are accessory to an industrial use, but does not include the sale of
commodities to the general public through a warehouse club. The portion
of a Cannabis/Marijuana facility not used for growing of the product will
also be included in this category;
“Institutional” means development of a building or structure intended for
use
(a) as a long-term care home within the meaning of subsection 2 (1) of
the Long-Term Care Homes Act, 2007;
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(b) as a retirement home within the meaning of subsection 2 (1) of the
Retirement Homes Act, 2010;
(c) by any of the following post-secondary institutions for the objects of
the institution:
(i) a university in Ontario that receives direct, regular, and
ongoing operating funding from the Government of Ontario,
(ii) a college or university federated or affiliated with a university
described in subclause (i), or
(iii) an Indigenous Institute prescribed for the purposes of
section 6 of the Indigenous Institutes Act, 2017;
(d) as a memorial home, clubhouse or athletic grounds by an Ontario
branch of the Royal Canadian Legion; or
(e) as a hospice to provide end of life care;
“interest rate” means the Municipality’s annual rate of interest of 6.5%;
“local board” means a local board as defined in the Development Charges
Act;
“local services” means those services, facilities or things which are under
the jurisdiction of the Municipality and are related to a plan of subdivision
or within the area to which the plan relates with respect to the lands under
sections 41, 51 or 53 of the Planning Act, R.S.O. 19990, Chap. P.13, as
amended, or any successor thereof;
“mobile home” means any dwelling that is designed to be made mobile,
and constructed or manufactured to provide a permanent residence for
one or more persons, but does not include a travel trailer or tent trailer;
“multiple dwellings” means all dwellings other than single detached, semi-
detached and apartment unit dwellings;
“Municipality” means the Corporation of the Municipality of Bayham;
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“non-profit housing” means development of a building or structure
intended for use as residential premises by,
(a) a corporation without share capital to which the Corporations Act
applies, that is in good standing under that Act and whose primary
object is to provide housing;
(b) a corporation without share capital to which the Canada Not-for-
profit Corporations Act applies, that is in good standing under that
Act and whose primary object is to provide housing; or
(c) a non-profit housing co-operative that is in good standing under the
Co-operative Corporations Act;
“non-residential use” means a building or structure of any kind whatsoever
used, designed or intended to be used for other than a residential use and
includes all commercial, industrial and institutional uses;
“owner” means the owner of land or a person who has made application
for an approval for the development of land upon which a development
charge is imposed;
“place of worship” means that part of a building or structure that is exempt
from taxation as a place of worship under the Assessment Act, R.S.O.
1990, Chap. A.31, as amended, or any successor thereof;
“regulation” means any regulation made pursuant to the Act;
“rental housing” means development of a building or structure with four or
more dwelling units all of which are intended for use as rented residential
premises;
“residential use” means land or buildings or structures of any kind
whatsoever used, designed or intended to be used as living
accommodations for one or more individuals;
“Secondary dwelling unit” means a dwelling unit, whether contained within
a proposed single detached dwelling or semi-detached dwelling, or
ancillary to a single detached dwelling or a semi-detached dwelling
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including but not limited to a coach house, laneway suite or structure
constructed above an existing garage or other structure separate from the
primary dwelling unit, which comprises an area less than the gross floor
area of the primary dwelling unit and is not capable of being legally
conveyed as a separate parcel of land form the primary dwelling unit;
“semi-detached dwelling” means a dwelling unit in a residential building
consisting of two dwelling units having one vertical wall or one horizontal
wall, but not other parts, attached or another dwelling unit where the
residential units are not connected by an interior corridor;
“service” (or “services”) means a service designated in Schedule “A” to
this By-law;
“servicing agreement” means an agreement between a landowner and the
Municipality relative to the provision of municipal services to specified land
within the Municipality;
“single detached dwelling unit” means a residential building consisting of
one dwelling unit and not attached to another structure, including mobile
homes; and
“zoning by-law” means the Zoning By-Law of the Municipality or any
successor thereof passed pursuant to Section 34 of the Planning Act, S.O.
1998.
2. DESIGNATION OF SERVICES AND CLASSES
2.1 The categories of services and classes for which development charges
are imposed under this By-law are as follows:
(a) Water Services; and
(b) Wastewater Services.
2.2 The components of the services and classes designated in section 2.1 are
described in Schedule A.
3. APPLICATION OF BY-LAW RULES
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3.1 Development charges shall be payable in the amounts set out in this By-
law where:
(a) the lands are located in the area described in section 3.2; and
(b) the development of the lands requires any of the approvals set out
in subsection 3.4 (a).
Area to Which By-law Applies
3.2 Subject to section 3.3, this By-law applies to the settlement areas
described in Schedule A where water and/or wastewater services are
available, whether or not the land or use thereof is exempt from taxation
under s.13 of the Assessment Act.
3.3 Notwithstanding clause 3.2 above, this By-law shall not apply to lands that
are owned by and used for the purposes of:
(a) a board as defined in subsection 1 (1) of the Education Act;
(b) the Municipality of Bayham or a local board thereof.
Approvals for Development
3.4 (a) Development charges shall be imposed on all lands, buildings or
structures that are developed for residential or non-residential uses
if the development requires:
(i) the passing of a zoning by-law or of an amendment to a
zoning by-law under section 34 of the Planning Act;
(ii) the approval of a minor variance under section 45 of the
Planning Act;
(iii) a conveyance of land to which a by-law passed under
subsection 50 (7) of the Planning Act applies;
(iv) the approval of a plan of subdivision under section 51 of the
Planning Act;
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(v) a consent under section 53 of the Planning Act;
(vi) the approval of a description under section 50 of the
Condominium Act, R.S.O. 1990, Chap. C.26, as amended,
or any successor thereof; or
(vii) the issuing of a permit under the Building Code Act in
relation to a building or structure.
(b) No more than one development charge for each service designated
in subsection 2.1 shall be imposed upon any lands, buildings or
structures to which this By-law applies even though two or more of
the actions described in subsection 3.4 (a) are required before the
lands, buildings or structures can be developed.
(c) Despite subsection 3.4 (b), if two or more of the actions described
in subsection 3.4 (a) occur at different times, additional
development charges shall be imposed if the subsequent action
has the effect of increasing the need for services.
Exemptions
3.5 Notwithstanding the provisions of this By-law, development charges shall
not be imposed with respect to the following residential criteria:
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3.6 Other Exemptions:
(a) Notwithstanding any other provision of this by-law, development
charges shall not be imposed with respect to:
(i) Non-residential uses
Amount of Charges
Residential
3.7 The development charges set out in Schedule B shall be imposed on
residential uses of land, buildings or structures, including a dwelling unit
accessory to a non-residential use and, in the case of a mixed-use
building or structure, on the residential uses in the mixed-use building or
structure, according to the type of residential unit and calculated with
respect to each of the services according to the type of residential use.
Reduction of Development Charges for Redevelopment
3.8 Despite any other provisions of this By-law, where, as a result of the
redevelopment of land, a building or structure existing on the same land
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within 60 months prior to the date of payment of development charges in
regard to such redevelopment was, or is to be demolished, in whole or in
part, or converted from one principal use to another principal use on the
same land in order to facilitate the redevelopment, the development
charges otherwise payable with respect to such redevelopment shall be
reduced by the following amounts:
(a) in the case of a residential building or structure or, in the case of a
mixed-use building or structure, the residential uses in the mixed-
use building or structure, an amount calculated by multiplying the
applicable development charge under section 3.7 by the number,
according to type, of dwelling units that have been or will be
demolished or converted to another principal use;
provided that such amounts shall not exceed, in total, the amount of the
development charges otherwise payable with respect to the
redevelopment.
Time of Payment of Development Charges
3.9 Development charges imposed under this By-law are calculated, payable
and collected upon issuance of a building permit with respect to each
dwelling unit, building or structure.
3.10 Notwithstanding subsection 3.7, development charges for rental housing
and institutional developments are due and payable in 6 instalments
commencing with the first instalment payable on the date of occupancy,
and each subsequent instalment, including the applicable interest rate,
payable on the anniversary date each year thereafter.
3.11 Notwithstanding subsection 3.7, Development Charges for non-profit
housing developments are due and payable in 21 instalments
commencing with the first instalment payable on the date of occupancy,
and each subsequent instalment, including the applicable interest rate,
payable on the anniversary date each year thereafter.
3.12 Where the development of land results from the approval of a Site Plan or
Zoning By-law Amendment received on or after January 1, 2020, and the
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approval of the application occurred within two years of building permit
issuance, the development charges under subsection 3.7 shall be
calculated on the rates set out in Schedule "B" on the date of the planning
application, including the applicable interest rate. Where both planning
applications apply development charges under subsection 3.7 shall be
calculated on the rates, including the applicable interest rate, set out in
Schedules "B" on the date of the later planning application.
3.13 Despite section 3.9, Council from time to time, and at any time, may enter
into agreements providing for all or any part of a development charge to
be paid before or after it would otherwise be payable, in accordance with
section 27 of the Act.
4. PAYMENT BY SERVICES
4.1 Despite the payment required under section 3.7, Council may, by
agreement, give a credit towards a development charge in exchange for
work that relates to a service to which a development charge is imposed
under this By-law.
5. INDEXING
5.1 Development charges imposed pursuant to this By-law shall be adjusted
annually, without amendment to this By-law, commencing on the 1st of
January 2023 and each year thereafter, in accordance with the prescribed
index in the Act.
6. SCHEDULES
6.1 The following schedules shall form part of this By-law:
Schedule A – Components of Services Designated in section 2.1
Schedule B – Residential Development Charges.
7. CONFLICTS
7.1 Where the Municipality and an owner or former owner have entered into
an agreement with respect to land within the area to which this By-law
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applies, and a conflict exists between the provisions of this By-law and
such agreement, the provisions of the agreement shall prevail to the
extent that there is a conflict.
7.2 Notwithstanding section 7.1, where a development which is the subject of
an agreement to which section 7.1 applies, is subsequently the subject of
one or more of the actions described in subsection 3.4 (a), an additional
development charge in respect of the development permitted by the action
shall be calculated, payable and collected in accordance with the
provisions of this By-law if the development has the effect of increasing
the need for services, unless such agreement provides otherwise.
8. SEVERABILITY
8.1 If, for any reason, any provision of this By-law is held to be invalid, it is
hereby declared to be the intention of Council that all the remainder of this
By-law shall continue in full force and effect until repealed, re-enacted,
amended or modified.
9. DATE BY-LAW IN FORCE
9.1 This By-law shall come into effect at 12:01 AM on __________, 2022.
10. DATE BY-LAW EXPIRES
10.1 This By-law will expire at 12:01 AM on __________, 2027 unless it is
repealed by Council at an earlier date.
PASSED THIS __________ day of __________, 2022.
Mayor
Clerk
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SCHEDULE “A” TO BY-LAW 2022-XXX
COMPONENTS OF SERVICES DESIGNATED IN SECTION 2.1
Settlement Area of Port Burwell:
• Water Services
• Wastewater Services
Settlement Area of Vienna:
• Water Services
• Wastewater Services
Settlement Area of Straffordville:
• Wastewater Services
Settlement Area of Eden:
• Wastewater Services
Settlement Area of Richmond:
• Water Services
Note: Refer to the Municipality’s Official Plan for maps of the Settlement Areas
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SCHEDULE “B” TO BY-LAW 2022-XXX
SCHEDULE OF DEVELOPMENT CHARGES
Settlement Area
Singles and
Semi-Detached Multiples
Apartments 2+
Bedrooms
Apartments 1
Bedroom or less
Port Burwell
Water Services 3,955$ 2,748$ 1,942$ 1,235$
Wastewater Services 11,329$ 7,870$ 5,562$ 3,536$
Total Port Burwell 15,284$ 10,618$ 7,504$ 4,771$
Vienna
Water Services 4,015$ 2,789$ 1,971$ 1,253$
Wastewater Services 12,951$ 8,997$ 6,358$ 4,043$
Total Vienna 16,966$ 11,786$ 8,329$ 5,296$
Straffordville
Wastewater Services 12,951$ 8,997$ 6,358$ 4,043$
Total Straffordville 12,951$ 8,997$ 6,358$ 4,043$
Eden
Wastewater Services 12,951$ 8,997$ 6,358$ 4,043$
Total Eden 12,951$ 8,997$ 6,358$ 4,043$
Richmond
Water Services 13,506$ 9,382$ 6,630$ 4,216$
Total Richmond 13,506$ 9,382$ 6,630$ 4,216$