HomeMy WebLinkAboutJune 19, 2025 - Public - Development ChargesTHE CORPORATION OF THE MUNICIPALITY OF BAYHAM
DEVELOPMENT CHARGES PUBLIC MEETING AGENDA
MUNICIPAL OFFICE
56169 Heritage Line, Straffordville, ON
Council Chambers – HYBRID
Thursday, June 19, 2025
6:30 p.m.
The June 19, 2025 Development Charges Public Meeting will allow for a
hybrid meeting function. You may attend in person or virtually through
the live-stream on the Municipality of Bayham’s YouTube Channel
1. CALL TO ORDER
2. DISCLOSURES OF PECUNIARY INTEREST & THE GENERAL NATURE THEREOF
3. MATERIALS
A. 2025 Development Charges Study & Draft By-law
B. Development Charges Public Meeting Presentation
4. PUBLIC PARTICIPATION
5. CORRESPONDENCE
6. OTHER BUSINESS
7. ADJOURNMENT
Watson & Associates Economists Ltd.
905-272-3600
June 5, 2025 info@watsonecon.ca
Development Charges Background
Study
Municipality of Bayham
Watson & Associates Economists Ltd.
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Table of Contents
Page
1. Introduction ...................................................................................................... 1-1
1.1 Purpose of this Document ....................................................................... 1-1
1.2 Summary of the Process ......................................................................... 1-1
1.3 Changes to the D.C.A. – Bill 23: More Homes Built Faster Act, 2022 ..... 1-2
1.3.1 Additional Residential Unit Exemption ....................................... 1-3
1.3.2 Removal of Housing as an Eligible D.C. Service ....................... 1-3
1.3.3 New Statutory Exemption for Non-Profit Housing ...................... 1-3
1.3.4 New Statutory Exemptions for Affordable Units, Attainable
Units, and Affordable Inclusionary Zoning Units ........................ 1-4
1.3.5 Historical Level of Service Extended to Previous 15-Year
Period ........................................................................................ 1-4
1.3.6 Revised Definition of Capital Costs ............................................ 1-5
1.3.7 Mandatory Phase-in of a D.C. .................................................... 1-5
1.3.8 D.C. By-law Expiry ..................................................................... 1-5
1.3.9 Installment Payments ................................................................. 1-5
1.3.10 Rental Housing Discount............................................................ 1-5
1.3.11 Maximum Interest Rate for Instalments and Determination
of Charge for Eligible Site Plan and Zoning By-law
Amendment Applications ........................................................... 1-6
1.3.12 Requirement to Allocate Funds Received .................................. 1-6
1.3.13 Bill 134: Affordable Homes and Good Jobs Act, 2023 ............... 1-6
1.4 Bill 185: Cutting Red Tape to Build More Homes Act, 2024.................... 1-8
1.4.1 Revised Definition of Capital Costs ............................................ 1-8
1.4.2 Removal of the Mandatory Phase-in .......................................... 1-8
1.4.3 Process for Minor Amendments to D.C. By-laws ....................... 1-9
1.4.4 Reduction of D.C. Rate Freeze Timeframe ................................ 1-9
1.4.5 Modernizing Public Notice Requirements ................................ 1-10
1.5 Proposed Bill 17: Protect Ontario by Building Faster and Smarter
Act, 2025 ............................................................................................... 1-10
Table of Contents (Cont’d)
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1.6 Noted Areas for Future Changes to Development Charges .................. 1-15
2. Anticipated Development in the Municipality of Bayham ............................ 2-1
2.1 Requirement of the Act ........................................................................... 2-1
2.2 Basis of Population, Household and Non-Residential Gross Floor
Area Forecast ......................................................................................... 2-1
2.3 Summary of Growth 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
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
4. D.C.-Eligible Cost Analysis by Service .......................................................... 4-1
4.1 Introduction ............................................................................................. 4-1
4.2 Service Levels and 10-Year Capital Costs for Municipality of
Bayham D.C. Calculations ...................................................................... 4-1
4.2.1 Growth Studies .......................................................................... 4-1
4.3 Service Levels and Longer-Term (2051) Capital Costs for
Municipality of Bayham D.C. Calculations .............................................. 4-4
4.3.1 Services Related to a Highway .................................................. 4-4
4.3.2 Fire Protection Services ............................................................. 4-8
4.3.3 Parks and Recreation Services ................................................ 4-10
5. D.C. Calculation ............................................................................................... 5-1
5.1 Municipal-Wide Calculations ................................................................... 5-1
6. D.C. Policy Recommendations and D.C. By-law Rules ................................ 6-1
Table of Contents (Cont’d)
Page
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6.1 Introduction ............................................................................................. 6-1
6.2 D.C. By-law Structure ............................................................................. 6-2
6.3 D.C. By-law Rules ................................................................................... 6-2
6.3.1 Payment in any Particular Case ................................................. 6-2
6.3.2 Determination of the Amount of the Charge ............................... 6-3
6.3.3 Application to Redevelopment of Land (Demolition and
Conversion) ................................................................................ 6-3
6.3.4 Exemptions (full or partial) ......................................................... 6-4
6.3.5 Timing of Collection ................................................................... 6-5
6.3.6 The Applicable Areas ................................................................. 6-5
6.3.7 Indexing ..................................................................................... 6-5
6.4 Other D.C. By-law Provisions ................................................................. 6-6
6.4.1 Categories of Services for Reserve Fund and Credit
Purposes .................................................................................... 6-6
6.4.2 By-law In-force Date .................................................................. 6-6
6.4.3 Minimum Interest Rate Paid on Refunds and Charged for
Inter-Reserve Fund Borrowing ................................................... 6-6
6.4.4 Area Rating ................................................................................ 6-6
6.5 Other Recommendations ........................................................................ 6-8
7. By-law Implementation ................................................................................... 7-1
7.1 Public Consultation Process ................................................................... 7-1
7.1.1 Introduction ................................................................................ 7-1
7.1.2 Public Meeting of Council........................................................... 7-1
7.1.3 Other Consultation Activity ......................................................... 7-1
7.2 Anticipated Impact of the Charge on Development ................................. 7-2
7.3 Implementation Requirements ................................................................ 7-3
7.3.1 Introduction ................................................................................ 7-3
7.3.2 Notice of Passage ...................................................................... 7-3
7.3.3 By-law Pamphlet ........................................................................ 7-3
7.3.4 Appeals ...................................................................................... 7-4
7.3.5 Complaints ................................................................................. 7-4
7.3.6 Credits ....................................................................................... 7-5
7.3.7 Front-Ending Agreements .......................................................... 7-5
7.3.8 Severance and Subdivision Agreement Conditions ................... 7-5
Appendix A Background Information on Residential and Non-Residential
Growth Forecast ............................................................................................. A-1
Appendix B Level of Service ................................................................................... B-1
Appendix C Long-Term Capital and Operating Cost Examination ...................... C-1
Table of Contents (Cont’d)
Page
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Appendix D D.C. Reserve Fund Policy ................................................................... D-1
Appendix E Local Service Policy .............................................................................E-1
Appendix F Asset Management Plan ....................................................................... F-1
Appendix G Draft D.C. By-law ................................................................................. G-1
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List of Acronyms and Abbreviations
Acronym Full Description of Acronym
A.M.P. Asset management plan
C.B.C. Community benefits charge
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
N.F.P.O.W. No fixed place of work
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
sq.m square metre(s)
Report
Watson & Associates Economists Ltd.
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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 D.C.A.
as amended, (section 10) and, accordingly, recommends new 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. Watson worked with Municipal staff in preparing the D.C.
analysis and policy recommendations.
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 6) and the proposed
by-law to be made available as part of the approval process (included as Appendix G).
Finally, it addresses post-adoption implementation requirements (Chapter 7) 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
requirements for the preparation of a background study and calculation of a D.C. i s
provided herein.
1.2 Summary of the Process
The public meeting required under section 12 of the D.C.A. has been scheduled for
June 19, 2025. 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.
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In accordance with the legislation, the background study and proposed D.C. by-law will
be available for public review on June 5, 2025.
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, D.C.
calculations and policy work July 2023 to April 2025
2.Council Workshop May 1, 2025
3.Public meeting advertisement was posted
on the Municipality’s website No later than May 29, 2025
4.Public release of final D.C. Background
study and proposed by-law June 5, 2025
5.Public meeting of Council June 19, 2025
6.Council considers adoption of background
study and passage of by-law August 21, 2025
7.Municipality website and media platform
publication of by-law passage By 20 days after passage
8.Last day for by-law appeal 40 days after passage
9.Municipality makes pamphlet available
(where by-law not appealed)
By 60 days after in force date
1.3 Changes to the D.C.A. – Bill 23: More Homes Built Faster
Act, 2022
On November 28, 2022, Bill 23 received Royal Assent. This Bill amends a number of
pieces of legislation including the Planning Act and the D.C.A. It is noted that, the
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Province removed the phase-in requirements and reinstated studies as an eligible
capital cost through Bill 185 (discussed in section 1.4). The following provides a
summary of the changes to the D.C.A.
1.3.1 Additional Residential Unit Exemption
The rules for these exemptions are now provided in the D.C.A., rather than the
regulations and are summarized as follows:
• Exemption for residential units in existing rental residential buildings – For rental
residential buildings with four or more residential units, the creation of the greater
of one unit or 1% of the existing residential units will be exempt from a D.C.
• Exemption for additional residential units in existing and new residential
buildings – The following developments will be exempt from a D.C.:
o A second unit in a detached, semi-detached, or rowhouse if all buildings
and ancillary structures cumulatively contain no more than one residential
unit;
o A third unit in a detached, semi-detached, or rowhouse if no buildings or
ancillary structures contain any residential units; and
o One residential unit in a building or structure ancillary to a detached, semi-
detached, or rowhouse on a parcel of urban land, if the detached, semi -
detached, or rowhouse contains no more than two residential units and no
other buildings or ancillary structures contain any residential units.
1.3.2 Removal of Housing as an Eligible D.C. Service
Housing services are removed as an eligible service. Municipalities with by-laws that
include a charge for housing services can no longer collect for this service.
1.3.3 New Statutory Exemption for Non-Profit Housing
Non-profit housing units are exempt from D.C.s and D.C. instalment payments due after
November 28, 2022.
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1.3.4 New Statutory Exemptions for Affordable Units, Attainable
Units, and Affordable Inclusionary Zoning Units
Affordable units, attainable units, and inclusionary zoning units (affordable) are exempt
from the payment of D.C.s, as follows:
• Affordable Rental Units: Where rent is no more than 80% of the average market
rent as defined by a new bulletin published by the Ministry of Municipal Affairs
and Housing.
• Affordable Owned Units: Where the price of the unit is no more than 80% of the
average purchase price as defined by a new bulletin published by the Ministry of
Municipal Affairs and Housing.
Note: Section 1.3.13 provides further details of the Affordable Rental Unit and
Affordable Owned Unit definitions, which have been modified through Bill 134
• Attainable Units: Excludes affordable units and rental units; will be defined as
prescribed development or class of development and sold to a person who is at
“arm’s length” from the seller.
o Note: for affordable and attainable units, the municipality shall enter into
an agreement that ensures the unit remains affordable or attainable for 25
years.
Note: the above Affordable Owned and Rental Unit exemptions came into force as of
June 1, 2024. At the time of writing, it is not known when the exemption for Attainable
Units will be in force.
• Inclusionary Zoning Units: Affordable housing units required under inclusionary
zoning by-laws are exempt from a D.C.
1.3.5 Historical Level of Service Extended to Previous 15-Year Period
Prior to Bill 23, the increase in need for service was limited by the average historical
level of service calculated over the 10-year period preceding the preparation of the D.C.
background study. This average is now extended to the historical 15-year period.
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1.3.6 Revised Definition of Capital Costs
The definition of capital costs has been revised to remove studies1. Furthermore, the
regulations to the Act may prescribe services for which land or an interest in land will be
restricted. As at the time of writing, no services have been prescribed.
1.3.7 Mandatory Phase-in of a D.C.
For all D.C. by-laws passed after January 1, 2022, the charge must be phased -in
annually over the first five years the by-law is in force, as follows1:
• Year 1 – 80% of the maximum charge;
• Year 2 – 85% of the maximum charge;
• Year 3 – 90% of the maximum charge;
• Year 4 – 95% of the maximum charge; and
• Year 5 to expiry – 100% of the maximum charge.
1.3.8 D.C. By-law Expiry
A D.C. by-law now expires 10 years after the day it comes into force (unless the by-law
provides for an earlier expiry date). This extends the by-law’s life from five years, prior
to Bill 23.
1.3.9 Installment Payments
Non-profit housing development has been removed from the instalment payment
section of the Act (subsection 26.1), as these units are now exempt from the payment of
a D.C.
1.3.10 Rental Housing Discount
The D.C. payable for rental housing development will be reduced based on the number
of bedrooms in each unit as follows:
• Three or more bedrooms – 25% reduction;
• Two bedrooms – 20% reduction; and
1 This provision was repealed by Bill 185, Cutting Red Tape to Build More Homes Act,
2024.
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• All other bedroom quantities – 15% reduction.
1.3.11 Maximum Interest Rate for Instalments and Determination of
Charge for Eligible Site Plan and Zoning By-law Amendment
Applications
No maximum interest rate was previously prescribed. As per Bill 23, the maximum
interest rate is set at the average prime rate plus 1%. This maximum interest rate
provision would apply to all instalment payments and eligible site plan and zoning by -
law amendment applications occurring after November 28, 2022.
1.3.12 Requirement to Allocate Funds Received
Annually, beginning in 2023, municipalities will be required to spend or allocate at least
60% of the monies in a reserve fund at the beginning of the year for water, wastewater,
and services related to a highway. Other services may be prescribed by the regulation.
1.3.13 Bill 134: Affordable Homes and Good Jobs Act, 2023
The exemption for affordable residential units was included in the More Homes Built
Faster Act (Bill 23), enacted by the Province on November 28, 2022. Under this
legislation, affordable residential units were defined within subsection 4.1 of the D.C.A.
and exemptions for D.C.s were provided in respect of this definition. While the
legislation was enacted in November 2022, the ability for municipalities to implement the
exemptions is based on the “Affordable Residential Units for the Purposes of the
Development Charges Act, 1997 Bulletin” published by the Minister of Municipal Affairs
and Housing. This bulletin informs the average market rent and purchase price to be
used in determining which developments qualify as affordable residential units. This
bulletin was published on April 5, 2024.
Bill 134 received Royal Assent on December 4, 2023 and provides for a modification to
the affordable residential unit definition by:
• Introducing an income-based test for affordable rent and purchase price; and
• Increasing the threshold for the market test of affordable rent and purchase price.
This change provides the exemption based on the lesser of the two measures.
Moreover, the rules in subsection 4.1 of the D.C.A. are unchanged with respect to :
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• The tenant and purchaser transacting the affordable unit being at arm’s length;
• The intent of maintaining the affordable residential unit definition for a 25 -year
period, requiring an agreement with the municipality (which may be registered on
title); and
• Exemptions for attainable residential units and associated rules (requiring further
regulations).
The following table provides the definitions provided through Bill 134 (underlining added
for emphasis).
Item Bill 134 Definition
(Current D.C.A. Definition)
Affordable residential unit
rent (subsection 4.1 (2),
para. 1)
The rent is no greater than the lesser of,
i. the income-based affordable rent for the residential unit
set out in the Affordable Residential Units bulletin, as
identified by the Minister of Municipal Affairs and
Housing in accordance with subsection (5), and
ii. the average market rent identified for the residential unit
set out in the Affordable Residential Units bulletin.
Average market rent/rent
based on income
(subsection 4.1 (5)) for the
purposes of subsection 4.1
(2), para. 1
The Minister of Municipal Affairs and Housing shall,
(a) determine the income of a household that, in the
Minister’s opinion, is at the 60th percentile of gross
annual incomes for renter households in the applicable
local municipality; and
(b) identify the rent that, in the Minister’s opinion, is equal to
30 per cent of the income of the household referred to in
clause (a).
Affordable residential unit
ownership (subsection 4.1
(3), para. 1)
The price of the residential unit is no greater than the lesser
of,
i. the income-based affordable purchase price for the
residential unit set out in the Affordable Residential Units
bulletin, as identified by the Minister of Municipal Affairs
and Housing in accordance with subsection (6), and
ii. 90 per cent of the average purchase price identified for
the residential unit set out in the Affordable Residential
Units bulletin.
Average market purchase
price/purchase price based
on income (subsection 4.1
(6)) for the purposes of
subsection 4.1 (3), para. 1
The Minister of Municipal Affairs and Housing shall,
(a) determine the income of a household that, in the
Minister’s opinion, is at the 60th percentile of gross
annual incomes for households in the applicable local
municipality; and
(b) identify the purchase price that, in the Minister’s opinion,
would result in annual accommodation costs equal to 30
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Item Bill 134 Definition
(Current D.C.A. Definition)
per cent of the income of the household referred to in
clause (a)
Note: the Affordable Unit exemption came into force on June 1, 2024
1.4 Bill 185: Cutting Red Tape to Build More Homes Act,
2024
On April 10, 2024, the Province released Bill 185: Cutting Red Tape to Build More
Homes Act. The Bill received Royal Assent on June 6, 2024. This Bill reversed many
of the key changes that were implemented through Bill 23. The following sections
provide a summary of the changes.
1.4.1 Revised Definition of Capital Costs
Bill 185 reversed the capital cost amendments of Bill 23 by reinstating studies as an
eligible capital cost. The following paragraphs were added to subsection 5(3) of the
D.C.A.:
5. Costs to undertake studies in connection with any of the matters referred to in
paragraphs 1 to 4.
6. Costs of the development charge background study required under section 10.
1.4.2 Removal of the Mandatory Phase-in
As noted in Section 1.4.7 above, Bill 23 required the phase-in of charges imposed in a
D.C. by-law over a five-year term for any by-laws passed after January 1, 2022. Bill 185
removed this mandatory phase-in. This change is effective for any D.C. by-laws passed
after Bill 185 came into effect.
For site plan and zoning by-law amendment applications that were made prior to Bill
185 receiving Royal Assent, the charges payable will be the charges that were in place
on the day the planning application was made (i.e., including the mandatory phase -in).
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1.4.3 Process for Minor Amendments to D.C. By-laws
Section 19 of the D.C.A. requires that a municipality must follow sections 10 through 18
of the D.C.A. (with necessary modifications) when amending D.C. by-laws. Sections 10
through 18 of the D.C.A. generally require the following:
• Completion of a D.C. background study, including the requirement to post the
background study 60 days prior to passage of the D.C. by-law;
• Passage of a D.C. by-law within one year of the completion of the D.C.
background study;
• A public meeting, including notice requirements; and
• The ability to appeal the by-law to the Ontario Land Tribunal.
Bill 185 allows municipalities to undertake minor amendments to D.C. by -laws for the
following purposes without adherence to the requirements noted above (with the
exception of the notice requirements):
1. To repeal a provision of the D.C. by-law specifying the date the by-law expires or
to amend the provision to extend the expiry date (subject to the 10-year
limitations provided in the D.C.A.);
2. To impose D.C.s for studies, including the D.C. background study; and
3. To remove the provisions related to the mandatory phase -in of D.C.s.
Minor amendments related to items 2 and 3 noted above may be undertaken only if the
D.C. by-law being amended was passed after November 28, 2022, and before Bill 185
took effect. Moreover, the amending by-law must be passed within six months of Bill
185 coming into effect.
Notice requirements for these minor amending by-laws are similar to the typical notice
requirements, with the exception of the requirement to identify the last day for appealing
the by-law (as these provisions do not apply).
1.4.4 Reduction of D.C. Rate Freeze Timeframe
Bill 108 (see Section 1.3.1 above) provides for the requirement to freeze the D.C.s
imposed on developments subject to a site plan and/or a zoning by -law amendment
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application. The D.C. rate for these developments is “frozen” at the rates that were in
effect at the time the site plan and/or zoning by-law amendment application was
submitted (subject to applicable interest). Once the application is approved by the
municipality, if the date the D.C. is payable is more than two years from the approval
date, the D.C. rate freeze would no longer apply. Bill 185 reduced the two -year
timeframe to 18 months.
1.4.5 Modernizing Public Notice Requirements
The D.C.A. sets out the requirements for municipalities to give notice of public meetings
and of by-law passage. These requirements are prescribed in sections 9 and 10 of O.
Reg. 82/98 and include giving notice in a newspaper of sufficiently general circulation in
the area to which the by-law would apply. The regulatory changes modernized public
notice requirements by allowing municipalities to provide notice on a municipal website
if a local newspaper is not available.
1.5 Proposed Bill 17: Protect Ontario by Building Faster and
Smarter Act, 2025
Bill 17, Protect Ontario by Building Faster and Smarter Act, 2025 (herein referred to as
Bill 17) was tabled in the Ontario Legislature on May 12, 2025.
The following provides a summary of the proposed changes to the D.C.A., along with
commentary on the potential impacts to municipalities.
1. Exemption for long-term care homes
• Currently, D.C.s imposed on long-term care homes are subject to annual
instalments under section 26.1 of the D.C.A.
• The proposed change would exempt long-term care homes from the payment of
D.C.s.
• This exemption would apply to any future D.C. instalments on long -term care
home developments.
• The D.C.A. does not allow reductions in D.C.s to be funded by other types of
development. As such, the exemption will have to be funded from other municipal
revenue sources.
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2. Definition of capital costs, subject to regulation
• The proposed change would add the words “subject to the regulations” to section
5 (3) of the D.C.A.
o The proposed amendment expands the scope of the Province’s authority
to limit eligible capital costs via regulation.
o The D.C.A. currently provides this ability to limit the inclusion of land costs.
o The Province intends to engage with municipalities and the development
community to determine potential restrictions on what costs can be
recovered through D.C.s.
• Commentary from organizations in the development community suggests these
discussions may continue to focus on limiting the inclusion of land costs in the
D.C. calculations. The proposed amendment, however, provides broad authority
for limiting eligible capital costs (i.e., the scope of regulatory authority is not
restricted to land).
• Reductions in D.C.-eligible capital costs will have to be funded from other
municipal revenue sources. Changes to the definition of capital costs through
regulation will require municipalities to adjust funding for capital projects swiftly
without the legislative amendment process.
3. Simplified D.C. by-law process to reduce charges
• Proposed change to section 19 (1.1) of the D.C.A. to allow a simplified process to
amend a D.C. by-law for the following reasons:
o Repeal or change a D.C. by-law expiry date (consistent with current
provisions);
o Repeal a D.C. by-law provision for indexing or amend to provide for a D.C.
not to be indexed; and
o Decrease the amount of a D.C. for one or more types of development.
• The simplified process includes passing of an amending by-law and providing
notice of passing of the amending by-law. There will be no requirement to
prepare a D.C. background study, undertake public consultation, and no ability to
appeal to the Ontario Land Tribunal.
• Limiting the simplified D.C. by-law amendment process to situations where the
amount of a D.C. for a type of development is being reduced would appear to
allow municipalities to adjust the charges for changes in assumptions (e.g.,
Watson & Associates Economists Ltd. PAGE 1-12
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reductions in capital cost estimates, application of grant funding to reduce the
recoverable amount), adding exemptions for types of development, and phasing
the imposition of a D.C.
• It is unclear if the simplified process would apply where exemptions are being
provided for purposes other than development type, as specified in the
amendment. For example, where a municipality is exempting a geographic area,
such as an industrial park, downtown core, major transit station area, etc.
• While administratively expedient, eliminating the statutory public process for
reductions in D.C.s will not provide the general public with an opportunity to
delegate Council on the matter and will reduce transparency.
4. Deferral of D.C. payment to occupancy for residential development
• Proposed changes to section 26.1 of the D.C.A. provide that a D.C. payable for
residential development (other than rental housing developments, which are
subject to payment in instalments) would be payable upon the earlier of the
issuance of an occupancy permit, or the day the building is first occupied.
• Only under circumstances prescribed in the regulations may the municipality
require a financial security.
o The Province has noted its intent to mitigate risk for municipalities. As
such, the prescribed circumstances may allow for securities when no
occupancy permit is required.
• Municipalities will not be allowed to impose interest on the deferral of D.C.
payment to occupancy.
• It appears those municipalities that have elected to utilize subsection 26
(2) of the Act (i.e., water, wastewater, services related to a highway, and
stormwater charges payable at the time of subdivision agreement) may no longer
be able to utilize this section for residential subdivisions or consents.
• Deferring the timing of payment for all residential development to occupancy will
have cashflow implications for municipalities. The impacts may include additional
financing costs for capital projects, increased administrative costs associated
with administering securities and occupancies, and potential delays in capital
project timing.
5. Removal of interest for legislated instalments
Watson & Associates Economists Ltd. PAGE 1-13
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• Proposed changes to section 26.1 of the Act would remove the ability to charge
interest on instalments for rental housing and institutional development.
• This would also apply to future instalments for existing deferrals once Bill 17
receives Royal Assent.
• The repeal of subsection 26.1 (9) of the D.C.A. removes the municipality’s ability
to require immediate payment of all outstanding instalments when a development
use changes from rental housing or institutional to another use.
• This proposed amendment has the same cashflow impacts for municipalities as
noted in item 4 above, although it is more limited in scope.
6. Ability for residential and institutional development to pay a D.C. earlier than a by-
law requires
• Currently, if a person wishes to waive the requirement to pay their D.C. in
instalments as per section 26.1, an agreement under section 27 of the
• D.C.A. (early payment agreement) is required.
• The proposed changes state that, “For greater certainty, a person required to pay
a development charge under this section may pay the charge before the day it is
payable even in the absence of an agreement under section 27.”
• This wording achieves its intent to allow a person to waive the requirement to pay
in instalments. It also appears, however, to allow residential and institutional
D.C.s to be paid earlier than required in a D.C. by-law, absent municipal
agreement.
• This is problematic for municipalities, as the development community may elect
to pay D.C.s before indexing or before municipalities pass a new
• D.C. by-law where a publicly available D.C. background study may be indicating
a potential increase in the charges.
7. Lower charge for rate freeze
• Section 26.2 of the D.C.A. requires that, for developments proceeding through a
site plan or zoning by-law amendment application, the D.C. be determined based
on the rates that were in effect when the planning application was submitted to
the municipality.
• In some instances, the D.C. that would be imposed at the time of building permit
issuance may be lower than that in place at the time of planning application.
Watson & Associates Economists Ltd. PAGE 1-14
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• Where rates have been frozen as per section 26.2 of the D.C.A., the proposed
amendments would require municipalities to apply either the “frozen” or the
current rate, whichever is lower, in such instances.
o Note, interest charges for the D.C. determined at planning application may
still be imposed.
• These proposed changes are positive as developers would not be charged in
excess of current rates (where lower) and developers who proceed in a timely
manner are not penalized with additional interest costs.
8. Grouping of services for the purposes of using credits
• Section 38 of the D.C.A. allows a person to construct growth-related works on a
municipality’s behalf, subject to an agreement. The person receives a credit
against future D.C.s payable for the service(s) to which the growth-related works
relate.
• A municipality can agree to allow the credits to be applied to other services in the
D.C. by-law.
• The proposed amendments would allow the Province to, through regulation,
deem two or more services to be one service for the purpose of applying credits.
• This proposed change appears to remove the municipality’s discretion to
combine services by agreement in certain instances.
• Combining services for the purposes of credits would have cashflow implications
for municipalities, where funds held in a reserve fund for a service not included
under the section 38 agreement would be reduced. This could delay the timing of
capital projects for these impacted services and/or increase financing costs.
9. Defining local services in the regulations
• Section 59 of the D.C.A. delineates between charges for local services and, by
extension, those that would be considered in a D.C. by -law.
• Municipalities typically establish a local service policy when preparing a
• D.C. background study to establish which capital works will be funded by the
developer as a condition of approval under section 51 or section 53 of the
Planning Act (i.e., local service) and which will be funded by the D.C. by-law.
• The proposed amendments would allow the Province to make regulations to
determine what constitutes a local service.
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o Although the Province has noted that this will be defined through
consultations, there may be unintended impacts. For example, if the
definition of a local service is too broad, it may lower the D.C. but increase
the direct funding requirements on one particular developer. If the
definition is too narrow, the opposite would result, whereby local services
would be broadly included in D.C. funding, thereby increasing D.C. rates.
o Additionally, what is deemed a local service in one municipality may vary
from what is deemed a local service in another, depending on the size,
density, and types of development.
Most of the changes above would come into effect upon Royal Assent of Bill 17. The
changes with respect to deferral of payment to occupancy for residential development
would come into effect upon the date proclaimed by the Lieutenant Governor in Council.
As the Bill progresses through the legislative process, Watson will continue to
monitor and advise of any amendments and associated impacts.
1.6 Noted Areas for Future Changes to Development
Charges
In the Province’s announcement, they indicated additional changes that are anticipated
to follow proposed regulatory changes and/or ongoing consultations.
The Province has indicated the intent to add the Statistics Canada Non -Residential
Building Construction Price Index for London to the prescribed indexes in the
regulations. This would allow municipalities west of London and those that are closer to
London than Toronto, to utilize the London series for indexing purposes.
The Province also indicated the intent to consult on a potential standardization of the
approaches to benefit to existing deductions. Currently there are best practices to
follow, however, there is no standardized approach across all municipalities. Providing a
standardized approach may be problematic, as capital projects in different municipalities
may be unique in scope and capital cost requirements.
Lastly, the announcement included commentary on expanding the Annual Treasurer’s
Statement reporting requirements. Currently for services related to a highway, water,
Watson & Associates Economists Ltd. PAGE 1-16
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and wastewater services, municipalities must allocate 60% of monies in their D.C.
reserve funds to projects. The Province may consider expanding this requirement to
more services.
Watson will ensure that any changes to the D.C.A., along with their implications, are
promptly monitored and communicated.
Watson & Associates Economists Ltd.
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Chapter 2
Anticipated Development in
the Municipality of Bayham
Watson & Associates Economists Ltd. PAGE 2-1
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2. Anticipated Development in the Municipality of
Bayham
2.1 Requirement of the Act
The growth forecast contained in this chapter (with supplemental tables in Appendix A)
provides for the anticipated development for which the Municipality will be required to
provide services over a 10-year (2025 to 2035) and a longer-term (2025 to 2051) time
horizon.
Chapter 3 provides the methodology for calculating a D.C. as per the D.C.A. Figure 2-1
presents this methodology graphically. It is noted in the first box of the schematic that in
order to determine the D.C. that may be imposed, it is a requirement of subsection 5 (1)
of the D.C.A. that “the anticipated amount, type and location of devel opment, for which
development charges can be imposed, must be estimated.”
2.2 Basis of Population, Household and Non-Residential
Gross Floor Area Forecast
The D.C. growth forecast has been derived by Watson in consultation with the
Municipality of Bayham. In preparing the growth forecast, the following information
sources were consulted to assess the residential and non -residential development
potential for the Municipality over the forecast period, including:
• Updated Growth Forecasts and Land Needs Assessment for the C ounty of Elgin
Memo, February 25, 2025, Hemson Consulting Ltd;
• Official Plan of the Municipality of Bayham, Draft, December 2024;
• 2011, 2016 and 2021 population, household and employment Cen sus data;
• Historical residential (2015 to 2024) and non-residential (2015 to 2023) building
permit data;
• Residential and non-residential supply opportunities as identified by Municipality
of Bayham staff; and
• Discussions with Municipal staff regarding anticipated residential and non-
residential development in the Municipality of Bayham.
Watson & Associates Economists Ltd. PAGE 2-2
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2.3 Summary of Growth Forecast
A detailed analysis of the residential and non -residential growth forecasts is provided in
Appendix A and the methodology employed is illustrated in Figure 2-1. The discussion
provided herein summarizes the anticipated growth for the Municipality and describes
the basis for the forecast. The results of the residential growth forecast analysis are
summarized in Table 2-1 below, and Schedule 1 in Appendix A.
As identified in Table 2-1 and Appendix A – Schedule 1, population in the Municipality of
Bayham (excluding census undercount) is anticipated to reach approximately 8,000 by
mid-2035 and 8,790 by mid-2051, resulting in an increase of approximately 550 and
1,340 persons, respectively. [1]
Figure 2-1
Population and Household Forecast Model
[1] The population figures used in the calculation of the 2025 D.C. exclude the net
Census undercount, which is estimated at approximately 4.0%. Population figures
presented herein have been rounded.
Intensification
Designated Lands
Servicing Capacity
Residential Units in the
Development Process
Employment Market by Local
Municipality,
Economic Outlook
Local, region
and Provincial
Forecast of
Residential Units
Decline in Existing Population
Net Population Increase
Historical Housing
Construction
DEMAND SUPPLY
Occupancy Assumptions
Gross Population Increase
Watson & Associates Economists Ltd. PAGE 2-3
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Table 2-1
Municipality of Bayham
Residential Growth Forecast Summary
[1] Population includes the Census undercount estimated at approximately 4.0% and has been rounded.
[2] Includes townhouses and apartments in duplexes.
[3] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units.
Notes:
Numbers may not add due to rounding.
Source: Derived from the Updated Growth Forecasts and Land Needs Assessment for County of Elgin Memo, February 25,
2025, Hemson Consulting Ltd., by Watson & Associates Economists Ltd.
Population Institutional
Population
Population
Excluding
Institutional
Population
Singles &
Semi-
Detached
Multiple
Dwellings[2]Apartments[3]Other Total
Households
Equivalent
Institutional
Households
7,270 6,989 44 6,945 2,007 62 54 164 2,287 40 3.056
7,690 7,396 16 7,380 2,095 60 55 185 2,395 15 3.088
7,380 7,096 21 7,075 2,045 35 45 135 2,260 19 3.140
7,750 7,451 22 7,429 2,177 35 55 135 2,402 20 3.102
8,320 7,996 24 7,972 2,393 49 75 135 2,652 21 3.015
9,140 8,789 26 8,763 2,719 89 107 135 3,050 23 2.882
420 407 -28 435 88 -2 1 21 108 -25
-310 -300 5 -305 -50 -25 -10 -50 -135 4
370 355 1 354 132 0 10 0 142 1
570 545 2 543 216 14 20 0 250 2
1,390 1,338 4 1,334 542 54 52 0 648 4
Mid 2011 - Mid 2016
Mid 2016 - Mid 2021
Mid 2011
Mid 2016
Mid 2021
Mid 2025
Mid 2035
Mid 2021 - Mid 2025HistoricalMid 2051Forecast
IncrementalPopulation
(Including
Census
Undercount)[1]
Year
Excluding Census Undercount Housing Units Person Per
Unit (P.P.U.):
Total
Population/
Total
Households
Mid 2025 - Mid 2035
Mid 2025 - Mid 2051
Watson & Associates Economists Ltd. PAGE 2-4
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Provided below is a summary of the key assumptions and findings regarding the
Municipality of Bayham D.C. growth forecast:
1. Unit Mix (Appendix A – Schedules 1 and 5)
• The housing unit mix for the Municipality was derived from a detailed
review of historical development activity (as per Schedule 5), as well as
active residential development applications and discussions with Municipal
staff regarding anticipated development trends for the Municipality of
Bayham.
• Based on the above indicators, the 2025 to 2051 household growth
forecast for the Municipality is comprised of a unit mix of 84% low density
units (single detached and semi-detached), 8% medium density (multiples
except apartments) and 8% high density (bachelor, 1-bedroom and 2-
bedroom apartments).
2. Planning Period
• Short- and longer-term time horizons are required for the D.C. process.
The D.C.A. limits the planning horizon for transit services to a 10-year
planning horizon. All other services can utilize a longer planning period if
the municipality has identified the growth-related capital infrastructure
needs associated with the longer-term growth planning period.
3. Population in New Units (Appendix A – Schedules 2, 3 and 4)
• The number of housing units to be constructed by 2051 in the Municipality
of Bayham over the forecast period is presented in Table 2-1. Over the
2025 to 2051 forecast period, the Municipality is anticipated to average
approximately 25 new housing units per year.
• Institutional population [1] is anticipated to increase by approximately 4
people between 2025 to 2051.
[1] Institutional population largely includes special care facilities such as nursing home or
residences for senior citizens. A P.P.U. of 1.050 depicts 1-bedroom and 2-or-more-
bedroom units in collective households.
Watson & Associates Economists Ltd. PAGE 2-5
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• Population in new units is derived from Schedules 2, 3 and 4, which
incorporate historical development activity, anticipated units (see unit mix
discussion) and average persons per unit (P.P.U.) by dwelling type for
new units.
• Schedule 6a summarizes the average P.P.U. assumed for new housing
units by age and type of dwelling based on Statistics Canada 2021 custom
Census data for the Municipality of Bayham. Due to data limitations,
medium and high density P.P.U. data was derived from the County of
Elgin which includes the Municipality of Bayham, and is outlined in
Schedule 6b . The total calculated P.P.U. for all density types has been
adjusted accordingly to account for the P.P.U. trends which has been
recently experienced in both new and older units. Forecasted 25-year
average P.P.U.s by dwelling type are as follows:
o Low density: 3.634
o Medium density: 2.347
o High density: 1.536
4. Existing Units and Population Change (Appendix A – Schedules 2, 3, and 4)
• Existing households for mid-2025 are based on the 2021 Census
households, plus estimated residential units constructed between mid -
2021 to the beginning of the growth period, assuming a minimum six-
month lag between construction and occupancy (see Schedule 2).
• The change in average occupancy levels for existing housing units is
calculated in Schedules 2 through 4.[1] The forecast population change in
existing households over the 2025 to 2051 forecast period is forecast to
decline by approximately 840.
5. Employment (Appendix A – Schedules 8a and 8b)
• The employment projections provided herein are largely based on the
activity rate method, which is defined as the number of jobs in the
Municipality divided by the number of residents. Key employment sectors
[1] Change in occupancy levels for existing households occurs due to aging of the
population and family life cycle changes, lower fertility rates and changing economic
conditions.
Watson & Associates Economists Ltd. PAGE 2-6
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include primary, industrial, commercial/population -related, institutional,
and work at home, which are considered individually below.
• 2016 employment data [1],[2] (place of work) for the Municipality of Bayham
is outlined in Schedule 8a. The 2016 employment base is comprised of
the following sectors:
o 1555 primary (11%);
o 385 work at home employment (27%);
o 530 industrial (38%);
o 240 commercial/population-related (17%); and
o 100 institutional (7%).
• The 2016 employment by usual place of work, including work at home, is
1,410. An additional 290 employees have been identified for the
Municipality of Bayham in 2016 that have no fixed place of work
(N.F.P.O.W.).[3]
• Total employment, including work at home and N.F.P.O.W. for the
Municipality of Bayham is anticipated to reach approximately 2,080 by
mid-2035 and 2,370 by 2051. This represents an employment increase of
approximately 180 for the 10-year forecast period and 470 for the longer-
term forecast period.
• Schedule 8b, Appendix A, summarizes the employment forecast,
excluding work at home employment and N.F.P.O.W. employment, which
is the basis for the D.C. employment forecast. The impact on municipal
services from work at home employees has already been included in the
population forecast. The need for municipal services related to
N.F.P.O.W. employees has largely been included in the employment
forecast by usual place of work (i.e., employment and gross floor area
[1] 2016 employment is based on Statistics Canada 2016 Place of Work Employment
dataset by Watson & Associates Economists Ltd.
[2] Statistics Canada 2021 Census place of work employment data has been reviewed.
The 2021 Census employment results have not been utilized due to a significant
increase in work at home employment captured due to Census enumeration occurring
during the provincial COVID-19 lockdown from April 1, 2021 to June 14, 2021.
[2] No fixed place of work is defined by Statistics Canada as "persons who do not go
from home to the same workplace location at the beginning of each shift. Such persons
include building and landscape contractors, travelling salespersons, independent truck
drivers, etc.”
Watson & Associates Economists Ltd. PAGE 2-7
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generated from N.F.P.O.W. construction employment). Furthermore,
since these employees have no fixed work address, they cannot be
captured in the non-residential G.F.A. calculation. Accordingly, work at
home and N.F.P.O.W. employees have been removed from the D.C.A.
employment forecast and calculation.
• Total employment for the Municipality of Bayham (excluding work at home
and N.F.P.O.W. employment) is anticipated to reach approximately 1,270
by mid-2035 and 1,450 by 2051. This represents an employment increase
of approximately 110 for the 10-year forecast period and 280 for the
longer-term forecast period. [1]
6. Non-Residential Sq.ft. Estimates (G.F.A.), Appendix A – Schedule 8b)
• Square footage estimates were calculated in Schedule 8b based on the
following employee density assumptions:
o 3,000 sq.ft. per employee for primary;
o 1,500 sq.ft. per employee for industrial;
o 500 sq.ft. per employee for commercial/population-related; and
o 690 sq.ft. per employee for institutional employment.
• The Municipal-wide incremental G.F.A. is anticipated to increase by
103,000 sq.ft. over the 10-year forecast period and 258,400 sq.ft. over the
longer-term forecast period.
• In terms of percentage growth, the 2025 to 2051 incremental G.F.A.
forecast by sector is broken down as follows:
o Primary – 7%
o industrial – 56%;
o commercial/population-related – 27%; and
o institutional – 10%.
[1] G.F.A. and employment associated within special care institutional dwellings treated
as residential, resulting in an institutional employment difference between Schedules 8a
and bb. Total employment growth in Schedule 8b (excluding work at home and
N.F.P.O.W. employment) has been downwardly adjusted to account for institutional
employment associated with special care facilities. Total employment in Schedule 8b is
anticipated to reach approximately 1,270 by mid-2035 and 1,450 by 2051.
Watson & Associates Economists Ltd.
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Chapter 3
The Approach to the
Calculation of the Charge
Watson & Associates Economists Ltd. PAGE 3-1
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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 not included in the list of eligible services provided 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 the 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.
Watson & Associates Economists Ltd. PAGE 3-2
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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
Anticipated
Development
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 Services
Forward-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.
Watson & Associates Economists Ltd. PAGE 3-3
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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
Yes
Yes
Yes
No
Yes
Yes
Yes
1.1 Arterial roads
1.2 Collector roads
1.3 Bridges, culverts and
roundabouts
1.4 Local municipal roads
1.5 Traffic signals
1.6 Sidewalks and streetlights
1.7 Active transportation
100
100
100
0
100
100
100
2. Other
Transportation
Services
n/a
n/a
Ineligible
Ineligible
Yes
Yes
n/a
n/a
2.1 Transit vehicles1 & facilities
2.2 Other transit infrastructure
2.3 Municipal parking spaces -
indoor
2.4 Municipal parking spaces -
outdoor
2.5 Works yards
2.6 Rolling stock1
2.7 Ferries
2.8 Airport
100
100
0
0
100
100
100
100
3. Stormwater
Drainage and
Control
Services
No
No
No
3.1 Main channels and drainage
trunks
3.2 Channel connections
3.3 Retention/detention ponds
100
100
100
1with 7+ year life-time
Watson & Associates Economists Ltd. PAGE 3-4
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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
Yes
Yes
Yes
4.1 Fire stations
4.2 Fire pumpers, aerials and
rescue vehicles1
4.3 Small equipment and gear
100
100
100
5. Parks Services
(i.e. Parks and
Open Space)
Ineligible
Yes
Yes
Yes
Yes
Yes
5.1 Acquisition of land for parks,
woodlots and E.S.A.s
5.2 Development of area
municipal parks
5.3 Development of district parks
5.4 Development of municipal-
wide parks
5.5 Development of special
purpose parks
5.6 Parks rolling stock1 and yards
0
100
100
100
100
100
6. Recreation
Services
Yes
Yes
6.1 Arenas, indoor pools, fitness
facilities, community centres,
etc. (including land)
6.2 Recreation vehicles and
equipment1
100
100
7. Library Services
No
No
No
7.1 Public library space (incl.
furniture and equipment)
7.2 Library vehicles¹
7.3 Library materials
100
100
100
8. Emergency
Preparedness
Services
n/a
n/a
n/a
8.1 Facility space (incl. furniture
and equipment)
8.2 Vehicles1
8.3 Equipment
100
100
100
9. Electrical Power
Services
Ineligible
Ineligible
Ineligible
9.1 Electrical substations
9.2 Electrical distribution system
9.3 Electrical system rolling stock
0
0
0
1with 7+ year life-time
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Categories of
Municipal Services
Eligibility
for
Inclusion
in the D.C.
Calculation
Service Components
Maximum
Potential
D.C.
Recovery
%
10. Provision of
Cultural,
Entertainment
and Tourism
Facilities and
Convention
Centres
Ineligible
Ineligible
10.1 Cultural space (e.g. art
galleries, museums and
theatres)
10.2 Tourism facilities and
convention centres
0
0
11. Wastewater
Services
No
No
n/a
No
11.1 Treatment plants
11.2 Sewage trunks
11.3 Local systems
11.4 Vehicles and equipment1
100
100
0
100
12. Water Supply
Services
No
No
n/a
No
12.1 Treatment plants
12.2 Distribution systems
12.3 Local systems
12.4 Vehicles and equipment1
100
100
0
100
13. Waste
Management
Services
Ineligible
Ineligible
n/a
n/a
13.1 Landfill collection, transfer
vehicles and equipment
13.2 Landfills and other disposal
facilities
13.3 Waste diversion facilities
13.4 Waste diversion vehicles and
equipment1
0
0
100
100
14. Policing
Services
No
No
No
14.1 Policing detachments
14.2 Policing rolling stock1
14.3 Small equipment and gear
100
100
100
15. Homes for the
Aged
n/a
n/a
15.1 Homes for the aged space
15.2 Vehicles1
100
100
16. Child Care and
Early Years
Programs
n/a
n/a
16.1 Childcare space
16.2 Vehicles1
100
100
17. Health n/a
n/a
17.1 Health department space
17.2 Health department vehicles¹
100
100
18. Social Housing n/a 18.1 Social housing space 100
19. Provincial
Offences Act
n/a
n/a
19.1 P.O.A. space
19.2 P.O.A. vehicles1
100
100
20. Social Services n/a 20.1 Social service space 100
1with 7+ year life-time
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Categories of
Municipal Services
Eligibility
for
Inclusion
in the D.C.
Calculation
Service Components
Maximum
Potential
D.C.
Recovery
%
21. Ambulance n/a
n/a
21.1 Ambulance station space
21.2 Vehicles1
100
100
22. Hospital
Provision Ineligible 22.1 Hospital capital contributions 0
23. Provision of
Headquarters
for the General
Administration
of Municipalities
and Area
Municipal
Boards
Ineligible
Ineligible
Ineligible
23.1 Office space
23.2 Office furniture
23.3 Computer equipment
0
0
0
24. Other Services
Yes
Yes
24.1 Studies in connection with
acquiring buildings, rolling
stock, materials and
equipment, and improving
land and facilities, including
the D.C. background study
cost
24.2 Interest on money borrowed
to pay for growth-related
capital
100
0-100
1with a 7+ year lifetime
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 detailed Local
Service Policy is provided in Appendix E.
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) costs to undertake studies in connection with any of the matters referred to in
paragraphs a to d;
f) costs of the development charge background study required under section 10;
and
g) interest on money borrowed to pay for the above-referenced costs;
In order for an increase in need for service to be included in the D.C. calculation,
Municipality 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.” Section 17, paragraph 4, of the same regulation indicates that “the value of
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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
funding shortfall with respect to future service needs. There are no outstanding credits
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.
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
provided herein have identified a class of service for growth studies.
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 th e
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 future forecast
periods, which underlie the D.C. calculation herein.
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
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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).
There are no reserve fund adjustments to be incorporated into the calculations as this is
the Municipality’s first Municipal-Wide D.C. by-law.
3.9 Deductions
The D.C.A. potentially requires that four 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; and
• anticipated grants, subsidies, and other contributions.
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 15-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
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.
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With respect to transit services, the changes to the Act introduced in 2015 have
provided for an alternative method for calculating the service standard ceiling. Transit
services must now utilize a forward-looking service standard analysis, described later in
this section.
The average service level calculation sheets for each service component in the D.C.
calculation are set out in Appendix B.
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
Section 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 benefi t 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
section 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.
Alternatively, 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 Counc il
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 measur e
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 6.4.4
of this report.
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 now 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 F.
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):
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o The calculations used to prepare the estimate for the planned level of
service for the transit services, as mentioned in subsection 5.2 (3) of the
Act.
i. An identification of the portion of the total estimated capital cost
relating to the transit services that would benefit,
ii. the anticipated development over the 10-year period immediately
following the preparation of the background study, or
iii. 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 development charge 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):
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 detailed asset management strategy and reporting requirements (subsection
6.1 (3) of the Regulations) that includes lifecycle costs, action plans that will
enable the assets to be sustainable, summary of how to achieve the proposed
level of service, discussion on procurement measures and risk.
The Municipality does not provide, nor intends to provide transit services in the near
future. Therefore, the above calculations and reporting requirements are not applicable
for this study.
Watson & Associates Economists Ltd.
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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 a uniform basis. 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.
The service component is evaluated on two format sheets:
• The service standards that provide the average historical 15-year level of service
calculation (see Appendix B), which “caps” the D.C. amounts (note that this is not
required for wastewater); and
• The infrastructure cost calculation, which determines the potential D.C.
recoverable cost.
The nature of the capital projects and timing identified in the chapter reflects Council’s
current intention. Over time, however, Municipality projects and Council priorities
change; accordingly, Council’s intentions may alter, and different capital projects (and
timing) may be necessary to meet the need for services required by new growth.
4.2 Service Levels and 10-Year Capital Costs for
Municipality of Bayham D.C. Calculations
This section evaluates the development-related capital requirements Growth Studies
over a 10-year planning period.
4.2.1 Growth Studies
Based on the anticipated growth forecast, several growth-related studies have been
identified to support various municipal initiatives. The total gross capital cost of these
studies is estimated at approximately $300,000. These include a Water and Wastewater
Master Plan, D.C. Background Studies, and other growth-related planning studies. For
broader planning-related studies, a deduction of 10% ($4,500) has been applied to
recognize the extent to which the studies relate to non-D.C.-eligible service. A
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deduction of $97,800 was made to recognize the benefit to the existing community.
Therefore, the net amount of $197,700 has been included in the D.C. calculations.
The capital cost studies use the 10-year population-to-employment ratio to allocate
growth-related capital costs, resulting in an allocation of 83% to residential development
and 17% to non-residential development.
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Table 4-1
Infrastructure Cost Included in the Development Charges Calculation
Growth Studies
Residential
Share
Non-
Residential
Share
2025 to 2034
1 Development charges study 2025 All D.C. Services 40,000 - 40,000 - 40,000 33,200 6,800
2 Development charges study 2030 All D.C. Services 40,000 - 40,000 - 40,000 33,200 6,800
3 Stormwater Development charges study 2026 Stormwater Services 20,000 - 20,000 - 20,000 16,600 3,400
4 Market Analysis 2027 All D.C. Services 15,000 - 1,500 13,500 6,800 6,700 5,561 1,139
5 Strategic Plan Update 2027 All D.C. Services 30,000 - 3,000 27,000 13,500 13,500 11,205 2,295
6 Road Needs Study 2025 Services Related to a Highway 55,000 - 55,000 27,500 27,500 22,825 4,675
7 Water/Wastewater Master Plan 2030 Water / Wastewater Services 100,000 - 100,000 50,000 50,000 41,500 8,500
Total 300,000 - 4,500 295,500 97,800 - 197,700 164,091 33,609
Net Capital
Cost
Benefit to
Existing
Development
Grants,
Subsidies and
Other
Contributions
Attributable to
New
Development
Total
Less:Potential D.C. Recoverable Cost
Service Specific
Other
Deductions
(to recognize
benefit to
non-D.C.
services)
Service to Which Project
Relates
Proj.
No.
Increased Service Needs Attributable
to Anticipated Development Timing
(year)
Gross Capital
Cost Estimate
(2025$)
Post
Period
Benefit
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4.3 Service Levels and Longer-Term (2051) Capital Costs for
Municipality of Bayham D.C. Calculations
This section evaluates the development-related capital requirements for services related
to a highway, fire protection services, and parks and recreation over a longer-term
planning period from 2025 to 2051.
4.3.1 Services Related to a Highway
4.3.1.1 Services Related to a Highway – Roads and Related
The Municipality owns and maintains:
• 38.10 km of asphalt roads;
• 115.00 km of Tar and Chip roads;
• 49.00 km of gravel roads;
• 6 bridges;
• 9 culverts;
• 19.2 km of sidewalks; and
• 468 streetlights.
The inventory utilized over the historical 15-year period provides an average level of
investment of $38,188 per capita, resulting in a D.C.-eligible recovery amount of $51.10
million over the longer-term forecast period.
With respect to future needs, the Municipality has identified a capital program totalling
$4.73 million. These projects include road upgrades, and provisions for sidewalks, road
upgrades, and streetlights. A deduction of $1.43 million was made to recognize the
benefit to the existing community.
Therefore, the total growth-related cost to be included in the D.C. is $3.30 million.
The residential/non-residential capital cost allocation for service related to a highway –
roads and related is based on the ratio of the anticipated population to employment
growth over the longer-term forecast period. This results in 83% being allocated to
residential development and 17% to non-residential development.
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Table 4-2
Infrastructure Cost Included in the Development Charges Calculation
Services Related to a Highway – Roads and Related
Less:Potential D.C. Recoverable Cost
Proj. No.Residential
Share
Non-
Residential
Share
2025 to 2051 83%17%
1 Toll Gate Road and Black Bridge Line 2031 500,000 - 500,000 450,000 50,000 41,500 8,500
2 Somers Road 2031 250,000 - 250,000 225,000 25,000 20,750 4,250
3 Mitchell Road 2031 385,000 - 385,000 346,500 38,500 31,955 6,545
4 Bayham Drive 2031 450,000 - 450,000 405,000 45,000 37,350 7,650
5 Provision - New Sidewalks 2025-2051 660,000 - 660,000 - 660,000 547,800 112,200
6 Provision for Road Upgrades / Improvements 2025-2051 2,400,000 - 2,400,000 - 2,400,000 1,992,000 408,000
7 Provision - Streetlights 2025-2051 80,000 - 80,000 - 80,000 66,400 13,600
Total 4,725,000 - - 4,725,000 1,426,500 - 3,298,500 2,737,755 560,745
Other
Deductions
Net Capital
Cost
Benefit to
Existing
Development
Grants, Subsidies
and Other
Contributions
Attributable to New
Development
Total
Increased Service Needs Attributable to
Anticipated Development Timing
(year)
Gross Capital
Cost Estimate
(2025$)
Post
Period
Benefit
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4.3.1.2 Services Related to a Highway – Public Works Facilities,
Equipment, and Fleet
The Municipality’s Public Works department currently operates out of a combined space
of 22,330 sq.ft. of building area. The space utilized over the previous 15-year period
provides an average level of service of $1,079 per capita. This level of service provides
the Municipality with a maximum D.C.-eligible amount for recovery over the 10-year
forecast period of $1.44 million.
The Public Works Department currently maintains an inventory of 26 vehicles and major
equipment totalling $4.61 million. This inventory utilized over the historical 15-year
period provides for an average level of service of $622 per capita. Over the forecast
period, the D.C.-eligible amount for vehicles and equipment is $831,754.
Based on the above, the maximum D.C.-eligible amount for public works is
approximately $2.28 million.
Based on the anticipated growth in the Municipality over the longer-term forecast period,
approximately $1.33 million of future capital has been identified. These projects include
a public works yard expansion, a drive shed, sidewalk machine, and a new snow plow.
A deduction of approximately $200,000 has been made for the share of the projects that
benefits the existing development.
Therefore, the net growth-related D.C. recoverable amount of $1.13 million has been
included in the calculations.
The residential/non-residential capital cost allocation for service related to a highway –
public works is based on the ratio of the anticipated population to employment growth
over the longer-term forecast period. This results in 87% being allocated to residential
development and 13% to non-residential development.
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Table 4-3
Infrastructure Cost Included in the Development Charges Calculation
Services Related to a Highway – Public Works Facilities, Equipment, and Fleet
Less:Potential D.C. Recoverable Cost
Residential
Share
Non-
Residential
Share
2025 to 2051 83%17%
1 PW Yard Expansion, Building 2040-2041 750,000 - 750,000 - 750,000 622,500 127,500
2 Drive Shed 2027-2030 80,000 - 80,000 40,000 40,000 33,200 6,800
3 Sidewalk Machine 2027-2030 200,000 - 200,000 100,000 100,000 83,000 17,000
4 Snow Plow - 2 Ton with snow Equipment 2027-2030 300,000 - 300,000 60,000 240,000 199,200 40,800
Total 1,330,000 - - 1,330,000 200,000 - 1,130,000 937,900 192,100
Grants, Subsidies
and Other
Contributions
Attributable to New
Development
TotalProj. No.
Post
Period
Benefit
Other
Deductions
Net Capital
Cost
Increased Service Needs Attributable to
Anticipated Development Timing (year)
Gross Capital
Cost Estimate
(2025$)
Benefit to
Existing
Development
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4.3.2 Fire Protection Services
The Municipality of Bayham’s Fire Department currently operates out of a combined
9,968 sq.ft. of facility space. The facility space provided over the 2010 to 2024 period
provides for an average level of service of 1.27 sq.ft. per capita or $891 per capita. This
level of service provides the Municipality with a maximum D.C.-eligible amount for
recovery over the forecast period of $1.19 million.
The fire department has a current inventory of 10 vehicles. Based on the number of
vehicles utilized in the provision of fire services over the previous 15 years, the total
D.C.-eligible amount calculated for fire vehicles over the forecast period is $948,281,
(based on a standard of $709 per capita).
In addition to vehicles, the Municipality provides 320 items of equipment and gear for
the use in fire services. The inventory utilized over the previous 15-year period results
in a calculated average level of service of $311 per capita, providing for a D.C.-eligible
amount over the forecast period of $416,145 for small equipment and gear.
Based on the above, the maximum D.C.-eligible amount for fire protection services is
approximately $2.56 million.
Based on the projected growth over the longer-term forecast period, the Municipality
has identified future capital needs totalling approximately $3.08 million. The projects
include provisions for a new pumper, and provisions for facilities and vehicles and
equipment to support the forecast population. A deduction of $1.0 million have been
made to account for the share of the capital projects that benefits existing
developments.
Therefore, the net growth-related D.C. recoverable amount of $2.08 million has been
included in the calculations.
These costs are shared between residential and non-residential development based on
the population to employment ratio over the longer-term forecast period, resulting in
87% being allocated to residential development and 13% being allocated to non-
residential development.
Watson & Associates Economists Ltd. PAGE 4-9
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Table 4-4
Infrastructure Cost Included in the Development Charges Calculation
Fire Protection Services
Less:Potential D.C. Recoverable Cost
Proj. No.Residential
Share
Non-
Residential
Share
2025 to 2051 83%17%
1 Pumper 2029 1,200,000 - 1,200,000 1,000,000 200,000 166,000 34,000
2 Provision for Facilities 2025-2051 1,300,000 - 1,300,000 - 1,300,000 1,079,000 221,000
3 Provision for Vehicles and Equipment 2025-2051 580,000 - 580,000 - 580,000 481,400 98,600
Total 3,080,000 - - 3,080,000 1,000,000 - 2,080,000 1,726,400 353,600
Post
Period
Benefit
Other
Deductions
Net Capital
Cost
Gross Capital
Cost Estimate
(2025$)
Increased Service Needs
Attributable to Anticipated
Development
Timing
(year)
Benefit to
Existing
Development
Grants, Subsidies
and Other
Contributions
Attributable to New
Development
Total
Watson & Associates Economists Ltd. PAGE 4-10
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4.3.3 Parks and Recreation Services
The Municipality currently provides a variety of parks and recreation-related assets to
service the community. A summary of the Municipality’s inventory is provided below:
• 30.40 acres of parkland (consisting of community parks and parkettes);
• 3,490 linear metres of trails;
• 258 amenities (baseball diamonds, playgrounds, picnic tables, tennis court,
pavilions, etc.);
• 3 parks and recreation vehicles and equipment; and
• Approximately 7,640 sq.ft. of recreation facility spaces.
In total, the Municipality’s parks and recreation service has provided a 15-year (2010 to
2024) historical level of service that equates to an investment of $2,528 per capita. This
level of investment provides the Municipality with a D.C.-eligible amount of $3.40 million
towards future parks and recreation capital.
Based on projected growth over the longer-term forecast period, the Municipality has
identified approximately $2.26 million in future growth-related capital costs for parks and
recreation. These projects include a canoe/kayak launch, new pavilions, a beach shade
structure, the Port Burwell Beach washroom expansion, and provisions for vehicles and
equipment, and parkland development. With respect to deductions, the following
adjustments have been made:
• Benefit to existing development: $975,800
• Grants, Subsidies, and Other Contributions: $210,000
Therefore, the net growth-related capital cost of $1.07 million is being included in the
D.C. calculations.
As the predominant users of parks and recreation tend to be residents of the
Municipality, the forecast growth-related costs have been allocated 95% to residential
and 5% to non-residential.
Watson & Associates Economists Ltd. PAGE 4-11
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Table 4-5
Infrastructure Cost Included in the Development Charges Calculation
Parks and Recreation Services
Proj.
No.
Residential
Share
Non-
Residential
Share
2025 to 2051 95%5%
1 Canoe / Kayak Launch 2026 85,000 - 85,000 69,700 15,300 14,535 765
2 Eden Pavillion 2025 185,000 - 185,000 151,700 33,300 31,635 1,665
3 Richmond Pavillion 2025 125,000 - 125,000 102,500 22,500 21,375 1,125
4 Memorial Park Pavillion 2026 350,000 - 350,000 114,800 210,000 25,200 23,940 1,260
5 Beach Shade Structure 2027 80,000 - 80,000 65,600 14,400 13,680 720
6 Port Burwell East Beach Washroom
Expansion 2025 575,000 - 575,000 471,500 103,500 98,325 5,175
7 Provision for Vehicles and
Equipment 2025-2051 160,000 - 160,000 - 160,000 152,000 8,000
8 Provision for Parkland Development 2025-2051 700,000 - 700,000 - 700,000 665,000 35,000
Total 2,260,000 - - 2,260,000 975,800 210,000 1,074,200 1,020,490 53,710
Gross Capital
Cost Estimate
(2025$)
Increased Service Needs
Attributable to Anticipated
Development
Timing
(year)
Post
Period
Benefit
Other
Deductions
Net Capital
Cost
Less:Potential D.C. Recoverable Cost
Benefit to
Existing
Development
Grants,
Subsidies
and Other
Contributions
Attributable
to New
Development
Total
Watson & Associates Economists Ltd.
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Chapter 5
D.C. Calculation
Watson & Associates Economists Ltd. PAGE 5-1
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5. D.C. Calculation
5.1 Municipal-Wide Calculations
Table 5-1 calculates the proposed uniform D.C.s to be imposed on anticipated
development in the Municipality for Municipal-wide services over the longer-term (2051)
forecast period. Table 5-2 calculates the proposed uniform D.C.s to be imposed on
anticipated development in the Municipality for Municipal-wide services over the 10-year
forecast period.
The calculation for residential development is generated on a per capita basis and is
based upon five forms of housing types (singles and semi-detached, multiples,
apartments 2+ bedrooms, apartments bachelor and 1 bedroom, and special care
dwelling units). The non-residential D.C. has been calculated on a per sq.ft. of G.F.A.
basis for all types of non-residential development (industrial, commercial, and
institutional).
The D.C.-eligible costs for each service component were developed in Chapter 3 for all
Municipal services, based on their proposed capital programs.
For the residential calculations, the total cost is divided by the “gross” (new resident)
population to determine the per capita amount. The eligible-D.C. cost calculations set
out in Chapter 4 are based on the net anticipated population increase (the forecast new
unit population less the anticipated decline in existing units). The cost per capita is then
multiplied by the average occupancy of the new units (Appendix A, Schedule 7) to
calculate the charge in Tables 5-1 to 5-2.
With respect to non-residential development, the non-residential share of the D.C.
eligible costs (based on need for service) have been divided by the anticipated
development over the planning period to calculate a cost per sq.ft. of G.F.A.
Table 5-3 summarizes the total D.C. that is applicable for the Municipal-wide services
and Table 5-4 summarizes the gross capital expenditures and sources of revenue for
works to be undertaken during the life of the by-law.
Lastly, Table 5-5 provides the Schedule of D.C. rates, by service, for residential and
non-residential developments.
Watson & Associates Economists Ltd. PAGE 5-2
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Table 5-1
Municipality of Bayham
Development Charge Calculation
Municipal-wide Services
Longer-Term (2051)
Table 5-2
Municipality of Bayham
Development Charge Calculation
Municipal-wide Services
10-Year
2025$ D.C.-Eligible Cost 2025$ D.C.-Eligible Cost
SERVICE/CLASS Residential Non-Residential S.D.U.per sq.ft.
$$$$
1.Fire Protection Services
1.1 Fire facilities, vehicles & equipment 1,726,400 353,600 2,876 1.37
1,726,400 353,600 2,876 1.37
2.Services Related to a Highway
2.1 Roads and Related 2,737,755 560,745 4,562 2.17
2.2 Public Works 937,900 192,100 1,563 0.74
3,675,655 752,845 6,125 2.91
3.Parks and Recreation Services
3.1 Park development, amenities, trails, recreation facilities, vehicles, and equipment 1,020,490 53,710 1,700 0.21
1,020,490 53,710 1,700 0.21
TOTAL $6,422,545 $1,160,155 $10,701 $4.49
D.C.-Eligible Capital Cost $6,422,545 $1,160,155
2051 Gross Population/GFA Growth (sq.ft.)2,181 258,400
Cost Per Capita/Non-Residential GFA (sq.ft.)$2,944.77 $4.49
By Residential Unit Type P.P.U.
Single and Semi-Detached Dwelling 3.634 $10,701
Multiples 2.347 $6,911
Apartments - 2 Bedrooms +1.870 $5,507
Apartments - Studio and 1 Bedroom 1.100 $3,239
Special Care/Special Dwelling Units 1.050 $3,092
2025$ D.C.-Eligible Cost 2025$ D.C.-Eligible Cost
SERVICE/CLASS Residential Non-Residential S.D.U.per sq.ft.
$$$$
4.Growth Studies
4.1 Growth Studies 164,091 33,609 702 0.33
164,091 33,609 702 0.33
TOTAL $164,091 $33,609 $702 $0.33
D.C.-Eligible Capital Cost $164,091 $33,609
10-Year Gross Population/GFA Growth (sq.ft.)850 103,000
Cost Per Capita/Non-Residential GFA (sq.ft.)$193.05 $0.33
By Residential Unit Type P.P.U.
Single and Semi-Detached Dwelling 3.634 $702
Multiples 2.347 $453
Apartments - 2 Bedrooms +1.870 $361
Apartments - Studio and 1 Bedroom 1.100 $212
Special Care/Special Dwelling Units 1.050 $203
Watson & Associates Economists Ltd. PAGE 5-3
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Table 5-3
Municipality of Bayham
Development Charge Calculation
Municipal-wide Services
2025$ D.C.-Eligible Cost 2025$ D.C.-Eligible Cost
Residential Non-Residential S.D.U.per sq.ft.
$$$$
Municipal-wide Services/Classes Longer-Term (2051)6,422,545 1,160,155 10,701 4.49
Municipal-wide Services/Classes 10 Year 164,091 33,609 702 0.33
TOTAL 6,586,636 1,193,764 11,403 4.82
Watson & Associates Economists Ltd. PAGE 5-4
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Table 5-4
Municipality of Bayham
Gross Expenditure and Sources of Revenue Summary for Costs to be Incurred over the Life of the By -law
Sources of Financing
Tax Base or Other Non-D.C. Source D.C. Reserve Fund
Other
Deductions
Benefit to
Existing Other Funding Residential Non-Residential
1.Fire Protection Services
1.1 Fire facilities, vehicles & equipment 1,896,296 0 1,000,000 0 0 743,926 152,370
2.Services Related to a Highway
2.1 Roads and Related 4,725,000 0 1,426,500 0 0 2,737,755 560,745
2.2 Public Works 580,000 0 200,000 0 0 315,400 64,600
3.Parks and Recreation Services
3.1 Park development, amenities, trails, recreation facilities,
vehicles, and equipment 1,400,000 0 975,800 210,000 0 203,490 10,710
4.Growth Studies
4.1 Growth Studies 300,000 4,500 97,800 0 0 164,091 33,609
Total Expenditures & Revenues $8,901,296 $4,500 $3,700,100 $210,000 $0 $4,164,662 $822,034
Post D.C. Period
Benefit
Total Gross CostService/Class
Watson & Associates Economists Ltd. PAGE 5-5
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Table 5-5
Municipality of Bayham
Schedule of Development Charges
NON-RESIDENTIAL
Single and Semi-
Detached Dwelling Multiples Apartments - 2
Bedrooms +
Apartments -
Studio and 1
Bedroom
Special
Care/Special
Dwelling Units
(per sq.ft. of Gross
Floor Area)
Municipal Wide Services/Class of Service:
Services Related to a Highway 6,125 3,956 3,152 1,854 1,770 2.91
Fire Protection Services 2,876 1,857 1,480 871 831 1.37
Parks and Recreation Services 1,700 1,098 875 515 491 0.21
Growth Studies 702 453 361 212 203 0.33
Total Municipal Wide Services/Class of Services 11,403 7,364 5,868 3,452 3,295 4.82
Service/Class of Service
RESIDENTIAL
Watson & Associates Economists Ltd.
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Chapter 6
D.C. Policy Recommentations
and D.C. By-law Rules
Watson & Associates Economists Ltd. PAGE 6-1
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6. D.C. Policy Recommendations and D.C. By-law
Rules
6.1 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 best practices across Ontario; with consideration for
the recent changes to the D.C.A. However, these policies are provided for Council’s
consideration and may be refined prior to adoption of the by-law.
Watson & Associates Economists Ltd. PAGE 6-2
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6.2 D.C. By-law Structure
It is recommended that:
• the Municipality uses a uniform Municipal-wide D.C. calculation for services
excluding water and wastewater services;
• one D.C. by-law be used for all Municipal-wide services referenced above; and
• D.C.s for water and wastewater services continue to be imposed on an area-
specific basis as provided through By-law 2022-067.
6.3 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.:
6.3.1 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.”
Watson & Associates Economists Ltd. PAGE 6-3
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6.3.2 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. Costs allocated to non-residential uses
will be assigned based on the amount of square feet of G.F.A. constructed for
eligible uses (i.e. industrial, commercial, and institutional).
2) Costs allocated to residential and non-residential uses are based upon a number
of conventions, as may be suited to each municipal circumstance, e.g.
• for parks and recreation, a 5% non-residential attribution has been made
to recognize use by the non-residential sector ;
• for services related to a highway, and fire protection services, an 87%
residential/13% non-residential attribution has been made based on a
population vs. employment growth ratio over the longer-term forecast
period;
• for growth studies an 87% residential/13% non-residential attribution has
been made based on a population vs. employment growth ratio over the
10-year forecast period; and
6.3.3 Application to Redevelopment of Land (Demolition and
Conversion)
If a development involves the demolition and replacement of a building or structure on
the same site (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 the
conversion from one principal use to another, the developer shall be allowed a credit
equivalent to:
1) the number of dwelling units demolished/converted multiplied by the applicable
residential D.C. in place at the time the D.C. is payable; and/or
2) the G.F.A. of the building demolished/converted multiplied by the current non -
residential D.C. in place at the time the D.C. is payable;
Watson & Associates Economists Ltd. PAGE 6-4
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provided that such amounts shall not exceed, in total, the amount of the development
charges otherwise payable with respect to the redevelopment.
Non-residential developments may submit a request to Council for an extension to the
60 month period described above, up to an additional 12 months.
6.3.4 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.);
• buildings or structures owned by and used for the purposes of any
municipality, local board, or Board of Education (section 3);
• may add up to 2 apartments in an existing or new detached, semi -
detached, or rowhouse (including in an ancillary structure);
• add one additional unit or 1% of existing units in an existing rental
residential building;
• a university in Ontario that receives direct, regular, and ongoing operating
funding from the Government of Ontario;
• affordable units;
• attainable units (to be in force at a later date);
• affordable inclusionary zoning units;
• non-profit housing; and
• discount for rental housing units based on bedroom size (i.e., three or
more bedrooms – 25% reduction, two bedrooms – 20% reduction, and all
others – 15% reduction).
b) Non-statutory exemptions (for Council’s consideration):
• Hospitals under the Public Hospitals Act;
• land, buildings or structures used for a place of worship or for the purpose
of a cemetery or burial ground and exempt from taxation under the
Assessment Act, R.S.O. 1990, c.A.31, as amended; and
Watson & Associates Economists Ltd. PAGE 6-5
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• Buildings or structures used as farm buildings.
6.3.5 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 s. 27 of the D.C.A.
Rental housing and institutional developments will pay D.C.s in 6 equal annual
payments commencing at occupancy subject to early or late payment agreements
entered into by the Municipality and an owner under s. 27 of the D.C.A.
Moreover, the D.C. amount for all developments occurring within 18 months of a Site
Plan or Zoning By-law Amendment planning approval (for applications submitted after
June 6, 2024), shall be determined based on the D.C. in effect on the day the applicable
Site Plan or Zoning By-law Amendment application was submitted (as a complete
application).
Instalment payments and payments determined at the time of Site Plan or Zoning By -
law Amendment application are subject to annual interest charges. The maximum
interest rate the Municipality can impose is the average prime rate plus 1%.
6.3.6 The Applicable Areas
The charges developed herein provide for varying charges within the Municipality, as
follows:
• All Municipal-wide services – the full residential and non-residential charge will
be imposed on all lands within the Municipality.
6.3.7 Indexing
Indexing of the D.C.s shall be implemented on a mandatory basis annually commencing
on January 1, 2026, and each January 1st thereafter, in accordance with the Statistics
Canada Quarterly, Non-Residential Building Construction Price Index (Table 18-10-
0276-02)[1] for the most recent year-over-year period.
[1] O. Reg. 82/98 referenced “The Statistics Canada Quarterly, Construction Price
Statistics, catalogue number 62-007” as the index source. Since implementation,
Watson & Associates Economists Ltd. PAGE 6-6
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6.4 Other D.C. By-law Provisions
It is recommended that:
6.4.1 Categories of Services for Reserve Fund and Credit Purposes
It is recommended that the Municipality create new reserve funds for: Fire Protection
Services, Parks and Recreation Services, Growth Studies, Services Related to a
Highway.
Appendix D outlines the reserve fund policies that the Municipality is required to follow
as per the D.C.A.
6.4.2 By-law In-force Date
A by-law under the D.C.A. comes into force on the day it is passed or the day specified
in the by-law, whichever is later.
6.4.3 Minimum Interest Rate Paid on Refunds and Charged for Inter-
Reserve Fund Borrowing
The minimum interest rate is what the Bank of Canada rate is on the day the by-law
comes into force updated on the first business day of every January, April, July and
October (as per section 11 of O. Reg. 82/98).
6.4.4 Area Rating
The D.C.A. required that 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).
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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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.
All other Municipal services are proposed to be recovered based on a uniform,
Municipal-wide basis. There have been several reasons why area-rating has not been
imposed on these services, including:
1. All Municipal services, with the exception of water and wastewater, require that
the average 15-year service standard be calculated. This average service
standard multiplied by growth in the Municipality, establishes an upper ceiling on
the amount of funds that can be collected from all developing landowners.
Section 4 (4) of O. Reg. 82/98 provides that “if a development charge by-law
applies to a part of the municipality, the level of service and averag e level of
service cannot exceed that which would be determined if the by-law applied to
the whole municipality.” Put in layperson terms, the average service standard
multiplied by the growth within the specific area would establish an area -specific
ceiling which would significantly reduce the total revenue recoverable for the
Municipality hence potentially resulting in D.C. revenue shortfalls and impacts on
property taxes.
2. Expanding on item 1, attempting to impose an area charge potentially causes
equity issues in transitioning from a Municipal-wide approach to an area-specific
approach. For example, if all services were now built (and funded) within Area A
(which is 75% built out) and this was funded with some revenues from Areas B
and C, moving to an area-rating approach would see Area A contribute no funds
to the costs of services in Areas B and C. The D.C.s would be lower in Area A
(as all services are now funded) and higher in Areas B and C. As well, funding
shortfalls may then potentially encourage the municipality to provide less
services to Areas B and C due to reduced revenue.
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3. Many services provided (roads, parks and recreation facilities, etc.) are not
restricted to one specific area and are often used by all residents. For example,
arenas located in different parts of the Municipality will be used by residents from
all areas depending on the programing of the facility (i.e., a public skate is
available each night, but at a different arena; hence usage of any one facility at
any given time is based on programming availability).
For the reasons noted above, it is recommended that Council continue imposing water
and wastewater D.C.s on an area-specific basis and that D.C.s for all other services be
imposed on a uniform Municipal-wide basis.
6.5 Other Recommendations
It is recommended that Council:
“Whenever appropriate, request that grants, subsidies and other contributions be
clearly designated by the donor as being to the benefit of existing development or
new development, as applicable;”
“Adopt the assumptions contained herein as an ‘anticipation’ with respect to capital
grants, subsidies and other contributions;”
“Establish a class of service for Growth Studies;”
“Adopt the D.C. approach to calculate the charges on a uniform Municipal-wide
basis;”
“Approve the capital project listing set out in Chapter 4 of the D.C. Background
Study dated June 5, 2025, subject to further annual review during the capital budget
process;”
“Approve the D.C. Background Study dated June 5, 2025;"
“Determine that no further public meeting is required;” and
“Approve the D.C. By-law as set out in Appendix G.
Watson & Associates Economists Ltd.
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Chapter 7
By-law Implementation
Watson & Associates Economists Ltd. PAGE 7-1
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7. By-law Implementation
7.1 Public Consultation Process
7.1.1 Introduction
This chapter addresses the mandatory, formal public consultation process (section
8.1.2), as well as the optional, informal consultation process (section 8.1.3). The latter
is designed to seek the co-operation and participation of those involved, in order to
produce the most suitable policy. Section 8.2 addresses the anticipated impact of the
D.C. on development from a generic viewpoint.
7.1.2 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)).
7.1.3 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.
7.2 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 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.
Watson & Associates Economists Ltd. PAGE 7-3
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7.3 Implementation Requirements
7.3.1 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 present an overview of the requirements in each case.
7.3.2 Notice of Passage
In accordance with section 13 of the D.C.A., when a D.C. by-law is passed, the
Municipality 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, the mailing of the notice, or publication on Municipal
website).
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
Municipal website, 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.
7.3.3 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;
Watson & Associates Economists Ltd. PAGE 7-4
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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.
7.3.4 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 Municipality 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 conducting 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.
7.3.5 Complaints
A person required to pay a D.C., or his agent, may complain to the Municipal 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 Council to the OLT.
Watson & Associates Economists Ltd. PAGE 7-5
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7.3.6 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.
7.3.7 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 that 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 Development
Charges Act, 1989. Accordingly, the Municipality assesses whether this mechanism is
appropriate for its use, as part of funding projects prior to Municipality funds being
available.
7.3.8 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.”
Watson & Associates Economists Ltd. PAGE 7-6
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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 municipal 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
Watson & Associates Economists Ltd. PAGE A-1
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Appendix A
Background Information on
Residential and Non-
Residential Growth Forecast
Watson & Associates Economists Ltd. PAGE A-2
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Schedule 1
Municipality of Bayham
Residential Growth Forecast Summary
[1] Population includes the Census undercount estimated at approximately 4.0% and has been rounded.
[2] Includes townhouses and apartments in duplexes.
[3] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units.
Notes:
Numbers may not add due to rounding.
Source: Derived from the Updated Growth Forecasts and Land Needs Assessment for County of Elgin Memo, February 25, 2025, Hemson Consu lting Ltd., by
Watson & Associates Economists Ltd.
Population Institutional
Population
Population
Excluding
Institutional
Population
Singles &
Semi-
Detached
Multiple
Dwellings[2]Apartments[3]Other Total
Households
Equivalent
Institutional
Households
7,270 6,989 44 6,945 2,007 62 54 164 2,287 40 3.056
7,690 7,396 16 7,380 2,095 60 55 185 2,395 15 3.088
7,380 7,096 21 7,075 2,045 35 45 135 2,260 19 3.140
7,750 7,451 22 7,429 2,177 35 55 135 2,402 20 3.102
8,320 7,996 24 7,972 2,393 49 75 135 2,652 21 3.015
9,140 8,789 26 8,763 2,719 89 107 135 3,050 23 2.882
420 407 -28 435 88 -2 1 21 108 -25
-310 -300 5 -305 -50 -25 -10 -50 -135 4
370 355 1 354 132 0 10 0 142 1
570 545 2 543 216 14 20 0 250 2
1,390 1,338 4 1,334 542 54 52 0 648 4
Mid 2011 - Mid 2016
Mid 2016 - Mid 2021
Mid 2011
Mid 2016
Mid 2021
Mid 2025
Mid 2035
Mid 2021 - Mid 2025HistoricalMid 2051Forecast
IncrementalPopulation
(Including
Census
Undercount)[1]
Year
Excluding Census Undercount Housing Units Person Per
Unit (P.P.U.):
Total
Population/
Total
Households
Mid 2025 - Mid 2035
Mid 2025 - Mid 2051
Watson & Associates Economists Ltd. PAGE A-3
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Schedule 2
Municipality of Bayham
Current Year Growth Forecast
Mid-2021 to Mid-2025
Mid 2021 Population 7,096
Occupants of Units (2)142
New Housing Units,multiplied by P.P.U. (3)3.520
Mid 2021 to Mid 2025 gross population increase 500 500
Occupants of New Units 1
Equivalent Institutional Units,multiplied by P.P.U. (3)1.050
Mid 2021 to Mid 2025 gross population increase 1 1
Decline in Housing Units (4)2,260
Unit Occupancy,multiplied by P.P.U. decline rate (5)-0.065
Mid 2021 to Mid 2025 total decline in population -146 -146
Population Estimate to Mid 2025 7,451
Net Population Increase, Mid 2021 to Mid 2025 355
(1)2021 population based on Statistics Canada Census unadjusted for Census undercount.
(2)
(3)Average number of persons per unit (P.P.U.) is assumed to be:
Singles & Semi Detached 3.643 93%3.386
Multiples (6)2.974 0%0.000
Apartments (7)1.902 7%0.134
Total 100%3.520
¹ Based on 2021 Census custom database
² Based on Building permit/completion activity
(4)2021 households taken from Statistics Canada Census.
(5)Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and
changing economic conditions.
(6)Includes townhouses and apartments in duplexes.
(7)Includes bachelor, 1-bedroom and 2-bedroom+ apartments.
Note: Numbers may not add to totals due to rounding.
Estimated residential units constructed, Mid-2021 to the beginning of the growth period assuming a six-month lag between construction and
occupancy.
Population
Structural Type Persons Per Unit¹
(P.P.U.)
% Distribution of
Estimated Units²
Weighted Persons
Per Unit Average
Watson & Associates Economists Ltd. PAGE A-4
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Schedule 3
Municipality of Bayham
10-Year Growth Forecast
Mid-2025 to Mid-2035
Mid 2025 Population 7,451
Occupants of Units (2)250
New Housing Units,multiplied by P.P.U. (3)3.393
Mid 2025 to Mid 2035 gross population increase 848 848
Occupants of New Units 2
Equivalent Institutional Units,multiplied by P.P.U. (3)1.050
Mid 2025 to Mid 2035 gross population increase 2 2
Decline in Housing Units (4)2,402
Unit Occupancy,multiplied by P.P.U. decline rate (5)-0.127
Mid 2025 to Mid 2035 total decline in population -305 -305
Population Estimate to Mid 2035 7,996
Net Population Increase, Mid 2025 to Mid 2035 545
(1)Mid 2025 Population based on:
(2)Based upon forecast building permits/completions assuming a lag between construction and occupancy.
(3)Average number of persons per unit (P.P.U.) is assumed to be:
Singles & Semi Detached 3.634 86%3.136
Multiples (6)2.347 6%0.134
Apartments (7)1.536 8%0.123
one bedroom or less 1.100
two bedrooms or more 1.870
Total 100%3.393
¹ Persons per unit based on adjusted Statistics Canada Custom 2021 Census database.
² Forecast unit mix based upon historical trends and housing units in the development process.
(4)Mid 2025 households based upon 2021 Census (2,260 units) + Mid 2021 to Mid 2025 unit estimate (142 units) = 2,402 units.
(5)
(6)Includes townhouses and apartments in duplexes.
(7)Includes bachelor, 1-bedroom and 2-bedroom+ apartments.
Note: Numbers may not add to totals due to rounding.
Structural Type Persons Per Unit¹
(P.P.U.)
% Distribution of
Estimated Units²
Weighted Persons
Per Unit Average
Population
2021 Population (7,096) + Mid 2021 to Mid 2025 estimated housing units to beginning of forecast period (142 x 3.52 = 500) + (1 x 1.05 = 1) +
(2,260 x -0.065 = -146) = 7,451
Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions.
Watson & Associates Economists Ltd. PAGE A-5
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Schedule 4
Municipality of Bayham
Long-Term Growth Forecast
Mid-2025 to Mid-2051
Mid 2025 Population 7,451
Occupants of Units (2)648
New Housing Units,multiplied by P.P.U. (3)3.359
Mid 2025 to Mid 2051 gross population increase 2,177 2,177
Occupants of New Units 4
Equivalent Institutional Units,multiplied by P.P.U. (3)1.050
Mid 2025 to Mid 2051 gross population increase 4 4
Decline in Housing Units (4)648
Unit Occupancy,multiplied by P.P.U. decline rate (5)-1.301
Mid 2025 to Mid 2051 total decline in population -843 -843
Population Estimate to Mid 2051 8,789
Net Population Increase, Mid 2025 to Mid 2051 1,338
(1)Mid 2025 Population based on:
(2)Based upon forecast building permits/completions assuming a lag between construction and occupancy.
(3)Average number of persons per unit (P.P.U.) is assumed to be:
Singles & Semi Detached 3.634 84%3.041
Multiples (6)2.347 8%0.196
Apartments (7)1.536 8%0.123
one bedroom or less 1.100
two bedrooms or more 1.870
Total 100%3.359
¹ Persons per unit based on Statistics Canada Custom 2021 Census database.
² Forecast unit mix based upon historical trends and housing units in the development process.
(4)Mid 2025 households based upon 2021 Census (2,260 units) + Mid 2021 to Mid 2025 unit estimate (142 units) = 2,402 units.
(5)Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions.
(6)Includes townhouses and apartments in duplexes.
(7)Includes bachelor, 1-bedroom and 2-bedroom+ apartments.
Note: Numbers may not add to totals due to rounding.
Structural Type Persons Per Unit¹
(P.P.U.)
% Distribution of
Estimated Units²
Weighted Persons
Per Unit Average
Population
2016 Population (7,096) + Mid 2021 to Mid 2025 estimated housing units to beginning of forecast period (142 x = 500) + (2,260 x -0.0642 = -
145) = 7,451
Watson & Associates Economists Ltd. PAGE A-6
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Schedule 5
Municipality of Bayham
Historical Residential Building Permits
Years 2015 to 2024
[1] Includes townhouses and apartments in duplexes.
[2] Includes bachelor, 1-bedroom, and 2-bedroom+ apartment units.
Source: Historical housing activity derived from building permit data for the Municipality of Bayham, by Watson &
Associates Economists Ltd.
Residential Building Permits Residential Building Completions
Total Year
2015 8 0 0 8
2016 23 0 0 23
2017 29 0 0 29
2018 22 0 0 22
2019 19 0 0 19
Sub-total 101 0 0 101
Average (2015 - 2019)20 0 0 20
% Breakdown 100.0%0.0%0.0%100.0%
2020 23 0 0 23
2021 35 0 0 35
2022 32 0 0 32
2023 20 0 0 20
2024 45 0 10 55
Sub-total 155 0 10 165
Average (2020 - 2024)31 0 2 33
% Breakdown 93.9%0.0%6.1%100.0%
2015 - 2024
Total 256 0 10 266
Average 26 0 1 27
% Breakdown 96.2%0.0%3.8%100.0%
Singles &
Semi
Detached
Multiples[1]Apartments[2]
Year
Watson & Associates Economists Ltd. PAGE A-7
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Schedule 6a
Municipality of Bayham
Person Per Unit by Age and Type of Dwelling
(2021 Census)
[1] Adjusted based on historical trends.
Note: Does not include Statistics Canada data classified as “Other.”
P.P.U. Not calculated for samples less than or equal to 50 dwelling units and does not include institutional population .
Age of Singles and Semi-Detached
Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 25 Year Average 25 Year Average Adjusted[1]
1-5 -- - - - 3.643
6-10 -- - 3.462 - 3.792 3.717 0.056
11-15 -- - 3.059 - 3.593 3.676 3.634
16-20 -- - - - 3.278 3.576 3.634
20-25 -- - 4.353 - 4.276 3.716 3.634
25-35 -- - 3.857 - 3.609
35+-- 1.694 3.069 5.308 2.989 3.597 3.634
Total --1.726 3.247 5.386 3.238
Age of All Density Types
Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total
1-5 -- - - - 3.500
6-10 -- - 3.538 - 3.833
11-15 -- - 3.059 - 3.714
16-20 -- - - - 3.316
20-25 -- - 4.353 - 4.276
25-35 -- - 3.929 - 3.167
35+-1.278 1.758 3.061 4.964 2.876
Total -1.500 1.865 3.243 5.220 3.128
Watson & Associates Economists Ltd. PAGE A-8
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Schedule 6b
County of Elgin
Person Per Unit by Age and Type of Dwelling
(2021 Census)
[1] Includes townhomes and apartments in duplexes.
[2] Includes bachelor, 1 bedroom and 2 bedroom+ apartments.
[3] Adjusted based on historical trends.
Note: Does not include Statistics Canada data classified as “Other.”
P.P.U. Not calculated for samples less than or equal to 50 dwelling units and does not include institutional population .
Age of Multiples[1]
Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 25 Year Average 25 Year Average Adjusted [3]
1-5 -- 2.000 3.364 - 2.974
6-10 -- - - - -
11-15 -- - - - 1.308 2.141 2.347
16-20 -- - - - 2.667 2.316 2.347
20-25 -- - - - 2.063 2.253 2.347
25-35 -- 2.154 3.357 - 2.375
35+-1.111 1.867 2.992 - 2.297
Total 0.357 1.152 1.933 3.041 4.273 2.326
Age of Apartments[2]
Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total 25 Year Average 25 Year Average Adjusted [3]
1-5 -1.143 1.846 2.400 - 1.902
6-10 -1.000 - - - 1.200
11-15 -1.083 - - - 1.316 1.473 1.536
16-20 -- - - - - 1.473 1.536
20-25 -- 1.667 - - 1.636 1.514 1.536
25-35 -1.333 1.769 - - 1.537
35+-1.155 1.713 3.075 - 1.521
Total 0.533 1.150 1.717 2.930 -1.530
Age of All Density Types
Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total
1-5 -1.238 1.922 2.922 4.409 2.772
6-10 -1.188 1.925 2.971 4.400 2.848
11-15 -1.348 1.776 2.877 4.556 2.767
16-20 -- 1.875 2.973 4.100 2.884
20-25 -1.250 1.683 2.776 4.128 2.680
25-35 -1.318 1.907 2.668 3.913 2.497
35+1.917 1.220 1.822 2.670 4.079 2.395
Total 1.682 1.234 1.830 2.739 4.166 2.506
Watson & Associates Economists Ltd. PAGE A-9
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Schedule 7
Municipality of Bayham
Person Per Unit Structural Type and Age of Dwelling
(2021 Census)
3.64 3.79 3.59
3.28
4.28
3.61
2.992.97
0.00
1.31
2.67
2.06
2.38 2.30
1.90
1.20 1.32
0.00
1.64 1.54 1.52
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
1-5 6-10 11-15 16-20 20-25 25-35 35+Persons Per DwellingAge of Dwelling
Singles and Semi-Detached Multiples Apartments
Multiple and Apartment P.P.U.s are based on County of Elgin.
Watson & Associates Economists Ltd. PAGE A-10
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Schedule 8a
Municipality of Bayham
Employment Forecast, 2025 to 2051
[1] Statistics Canada defines no fixed place of work (N.F.P.O.W.) employees as "persons who do not go from home to the same workp lace location at the beginning
of each shift. Such persons include building and landscape contractors, travelling salespersons, independent truck drivers, etc.”
Note: Statistics Canada 2021 Census place of work employment data has been reviewed . The 2021 Census employment results have not been utilized due to a
significant increase in work at home employment captured due to Census enumeration occurring during the provincial COVID-19 lockdown from April 1, 2021 to
June 14, 2021.
Source: Derived from the Updated Growth Forecasts and Land Needs Assessment for County of Elgin Memo, February 25, 2025, Hem son Consulting Ltd., by
Watson & Associates Economists Ltd.
Employment Total Employment
Mid 2011 6,989 0.027 0.041 0.044 0.024 0.019 0.155 0.024 0.179 190 285 305 170 135 1,085 165 1,250 800
Mid 2016 7,396 0.021 0.052 0.072 0.032 0.014 0.191 0.039 0.229 155 385 530 240 100 1,410 286 1,696 1,025
Mid 2025 7,451 0.021 0.058 0.075 0.045 0.015 0.214 0.041 0.255 157 431 560 339 109 1,596 303 1,899 1,165
Mid 2035 7,996 0.020 0.060 0.075 0.049 0.016 0.219 0.042 0.260 160 476 599 391 124 1,750 332 2,082 1,274
Mid 2051 8,789 0.019 0.062 0.075 0.054 0.017 0.227 0.043 0.270 163 546 656 478 150 1,993 377 2,370 1,447
Mid 2011 - Mid 2016 407 -0.006 0.011 0.028 0.008 -0.006 0.035 0.015 0.051 -35 100 225 70 -35 325 121 446 225
Mid 2016 - Mid 2025 55 0.000 0.006 0.003 0.013 0.001 0.024 0.002 0.026 2 46 30 99 9 186 17 203 140
Mid 2025 - Mid 2035 545 -0.001 0.002 0.000 0.003 0.001 0.005 0.001 0.006 3 45 39 52 15 154 29 183 109
Mid 2025 - Mid 2051 1,338 -0.003 0.004 -0.001 0.009 0.002 0.013 0.002 0.015 6 115 96 139 41 397 74 471 282
Mid 2011 - Mid 2016 81 -0.001 0.002 0.006 0.002 -0.001 0.007 0.003 0.010 -7 20 45 14 -7 65 24 89 45
Mid 2016 - Mid 2025 6 0.000 0.001 0.000 0.001 0.000 0.003 0.000 0.003 0 5 3 11 1 21 2 23 16
Mid 2025 - Mid 2035 55 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.001 0 5 4 5 2 15 3 18 11
Mid 2025 - Mid 2051 51 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.001 0 4 4 5 2 15 3 18 11
Total (Excluding
Work at Home
and N.F.P.O.W.)
Incremental Change
Annual Average
Total
Including
N.F.P.O.W.
N.F.P.O.W.[1]Work at
Home Industrial
Commercial/
Population
Related
Total
Employment
(Including
N.F.P.O.W.)
InstitutionalN.F.P.O.W.[1]
Activity Rate
Period Population Primary Work at
Home Industrial
Commercial/
Population
Related
Institutional Total
Employment
Primary Total
Watson & Associates Economists Ltd. PAGE A-11
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Schedule 8b
Municipality of Bayham
Employment and Gross Floor Area (G.F.A.) Forecast, 2025 to 2051
I’ve asked
[1] Square Foot Per Employee Assumptions
Primary - Non-Bona Fide Farming 3,000
Industrial 1,500
Commercial/Population-Related 500
Institutional 690
[2] Primary industry includes agriculture and resource related employment.
[3] Forecast institutional employment and gross floor area has been adjusted downward to account for employment associated with special care units.
*Reflects Mid-2025 to Mid-2051 forecast period.
Note: Numbers may not add up precisely due to rounding.
Source: Watson & Associates Economists Ltd.
Re-Allocation of Building Area Forecast (in Sq. Ft.)
Mid 2011 6,989 190 305 170 135 800 570,000 457,500 85,000 96,400 1,208,900
Mid 2016 7,396 155 530 240 100 1,025 465,000 795,000 120,000 71,400 1,451,400
Mid 2025 7,451 157 560 339 109 1,165 471,000 840,000 169,500 77,800 1,558,300
Mid 2035 7,996 160 599 391 123 1,273 480,000 898,500 195,500 87,300 1,661,300
Mid 2051 8,789 163 656 478 148 1,445 489,000 984,000 239,000 104,700 1,816,700
Mid 2011 - Mid 2016 407 -35 225 70 -35 225
Mid 2016 - Mid 2025 55 2 30 99 9 140 6,000 45,000 49,500 6,400 106,900
Mid 2025 - Mid 2035 545 3 39 52 14 108 9,000 58,500 26,000 9,500 103,000
Mid 2025 - Mid 2051 1,338 6 96 139 39 280 18,000 144,000 69,500 26,900 258,400
Mid 2011 - Mid 2016 81 -7 45 14 -7 45
Mid 2016 - Mid 2025 6 0 3 11 1 16 667 5,000 5,500 711 11,878
Mid 2025 - Mid 2035 55 0 4 5 1 11 900 5,850 2,600 950 10,300
Mid 2025 - Mid 2051 51 0 4 5 2 11 692 5,538 2,673 1,035 9,938
Period Population
Employment Gross Floor Area in Square Feet (Estimated)[1]
Primary
Incremental Change
Industrial
Commercial/
Population
Related
Institutional[3]Total Primary[2]Industrial
Commercial/
Population
Related
Institutional[3]Total
Annual Average
Watson & Associates Economists Ltd. PAGE A-12
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Schedule 9
Municipality of Bayham
Employment Categories by Major Employment Sector
Note: Employment is classified by North American Industry Classification System (NAICS)
Code.
Source: Watson & Associates Economists Ltd.
Primary Industry Employment
11 Agriculture, forestry, fishing and hunting
21 Mining and oil and gas extraction
Industrial and Other Employment
22 Utilities
23 Construction
31-33 Manufacturing
41 Wholesale trade
48-49 Transportation and warehousing
56 Administrative and support
Population Related Employment
44-45 Retail trade
51 Information and cultural industries
52 Finance and insurance
53 Real estate and rental and leasing
54 Professional, scientific and technical services
55 Management of companies and enterprises
56 Administrative and support
71 Arts, entertainment and recreation
72 Accommodation and food services
81 Other services (except public administration)
Institutional
61 Educational services
62 Health care and social assistance
91 Public administration
Comments
Categories which relate to local
land-based resources
Categories which relate primarily
to industrial land supply and
demand
Categories which relate primarily
to population growth within the
municipality
NAICS Employment by industry
Watson & Associates Economists Ltd. PAGE B-1
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Appendix B
Level of Service
Watson & Associates Economists Ltd. PAGE B-2
H:\Bayham\2023 DC\Report\Bayham DC Report .docx
Appendix B: Level of Service
Cost (per capita)
Services Related to a Highway - Roads $35,014.93 0.0280 km of roadways 1,250,533 per km 46,849,976
Services Related to a Highway - Bridges, Culverts & Structures $2,098.60 0.0021 Number of Bridges, Culverts & Structures 999,333 per item 2,807,927
Services Related to a Highway - Sidewalks and Active Transportation $846.27 0.0026 km of sidewalks and active transportation 325,488 per km 1,132,309
Services Related to a Highway - Traffic Signals & Streetlights $228.07 0.0605 No. of Traffic Signals 3,770 per signal 305,158
Public Works - Facilities $1,078.96 3.0471 sq.ft. of building area 354 per sq.ft.1,443,648
Public Works - Vehicles & Equipment $621.64 0.0035 No. of vehicles and equipment 177,611 per vehicle 831,754
Fire Protection Services - Facilities $890.51 1.2673 sq.ft. of building area 703 per sq.ft.1,191,502
Fire Protection Services - Vehicles & Equipment $708.73 0.0011 No. of vehicles 644,300 per vehicle 948,281
Fire Protection Services - Small Equipment and Gear $311.02 0.0444 No. of equipment and gear 7,005 per item 416,145
Parkland Development $413.67 0.0042 Acres of Parkland 98,493 per acre 553,490
Parkland Amenities $1,163.74 0.0356 No. of parkland amenities 32,689 per amenity 1,557,084
Parkland Trails $48.88 0.4453 Linear Metres of Paths and Trails 110 per linear m 65,401
Recreation Facilities $868.63 1.5456 sq.ft. of building area 562 per sq.ft.1,162,227
Parks & Recreation Vehicles and Equipment $33.31 0.0004 No. of vehicles and equipment 83,275 per vehicle 44,569
Fire Protection
Parks & Recreation
Maximum
Ceiling LOS
15 Year Average Service Standard
Quality (per capita)Quantity (per capita)
SUMMARY OF SERVICE STANDARDS AS PER DEVELOPMENT CHARGES ACT, 1997, AS AMENDED
Service Related to a
Highway
Public Works
Service Category Sub-Component
Watson & Associates Economists Ltd. PAGE B-3
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Municipality of Bayham
Service Standard Calculation Sheet
Service:Fire Protection Services - Facilities
Unit Measure:sq.ft. of building area
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2025
Bld'g
Value
($/sq.ft.)
Value/sq.ft.
with land,
site works,
etc.
Port Burwell Station / Bayham Station No. 1 - - 6,068 6,068 6,068 6,068 6,068 6,068 6,068 6,068 6,068 6,068 6,068 6,068 6,068 $600 $771
Straffordville Station / Bayham Station No. 2 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 $500 $611
Total 3,900 3,900 9,968 9,968 9,968 9,968 9,968 9,968 9,968 9,968 9,968 9,968 9,968 9,968 9,968
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 0.56 0.56 1.41 1.39 1.37 1.36 1.35 1.35 1.38 1.39 1.40 1.40 1.38 1.36 1.35
15 Year Average 2010 to 2024
Quantity Standard 1.27
Quality Standard $703
Service Standard $891
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $891
Eligible Amount $1,191,502
Watson & Associates Economists Ltd. PAGE B-4
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Service Standard Calculation Sheet
Service:Fire Protection Services - Small Equipment and Gear
Unit Measure:No. of equipment and gear
Description Useful Life 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2025
Value
($/item)
Fully Equipped Firefighters 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 $6,148
SCBAs 15 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 $16,000
Bottles - Composite 15 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 $2,000
Portable Radios 10 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 $1,700
Hydraulic Equipment 20 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 $50,000
Thermal Imaging Cameras 20 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 $7,000
Gas Detectors 15 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 $1,500
Ice Water Rescue Suits 10 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 $2,750
High Angle Rescue Equipment 20 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 $2,500
Portable Pumps 20 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 $10,000
Portable Generators 20 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 $5,000
Portable Lights 20 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 $2,000
Refill Station 15 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $60,000
Nozzles 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 $1,000
Hoses - 100mm (pooled)25 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $24,000
Hoses - 65mm (pooled)25 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $24,000
Hoses - 45mm (pooled)25 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $15,600
Adaptors 25 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 $350
Cistern 40 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $125,000
Portable Fan 20 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 $5,000
Portable Air bags 20 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $20,000
Compressor 20 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $60,000
Standby Generator 20 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $45,000
Communcation Tower 20 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $350,000
Communication Equipment ( On
Tower)10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $150,000
Moible Truck Radios 20 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 $3,000
Total 320 320 320 320 320 320 320 320 320 320 320 320 320 320 320
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 0.05 0.05 0.05 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.05 0.04 0.04 0.04
15 Year Average 2010 to 2024
Quantity Standard 0.04
Quality Standard $7,005
Service Standard $311
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $311
Eligible Amount $416,145
Watson & Associates Economists Ltd. PAGE B-5
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Municipality of Bayham
Service Standard Calculation Sheet
Service:Fire Protection Services - Vehicles & Equipment
Unit Measure:No. of vehicles
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value
($/Vehicle)
Pumper 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $900,000
Pumper/Tanker 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $900,000
Rescue 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $500,000
Pumper 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $1,000,000
Pumper Tanker 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $1,200,000
Rescue 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $500,000
Marine 1 - - - - - - - - - 1 1 1 1 1 1 $50,000
Marine Trailer - - - - - - - - - 1 1 1 1 1 1 $7,500
UTV - - - - - - - - - - - - - 1 1 $33,000
Fire Chief Vehicle 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $80,000
Total 7 7 7 7 7 7 7 7 7 9 9 9 9 10 10
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0009 0.0010 0.0010 0.0013 0.0013 0.0013 0.0012 0.0014 0.0014
15 Year Average 2010 to 2024
Quantity Standard 0.0011
Quality Standard $644,300
Service Standard $709
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $709
Eligible Amount $948,281
Watson & Associates Economists Ltd. PAGE B-6
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Municipality of Bayham
Service Standard Calculation Sheet
Service:Services Related to a Highway - Roads
Unit Measure:km of roadways
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value
($/km)
Road Surface - Ashpalt 37.90 37.90 37.90 37.90 37.90 37.90 37.90 37.90 37.90 37.90 38.00 38.00 38.00 38.00 38.10 $1,900,000
Road Surface - Tar & Chip 105.20 105.20 105.20 105.20 105.20 105.20 105.20 105.20 105.20 107.80 111.90 114.90 114.90 114.90 115.00 $1,200,000
Road Surface - Gravel 59.00 59.00 59.00 59.00 59.00 59.00 59.00 59.00 59.00 56.90 51.90 49.00 49.00 49.00 49.00 $900,000
Total 202.10 202.10 202.10 202.10 202.10 202.10 202.10 202.10 202.10 202.60 201.80 201.90 201.90 201.90 202.10
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03
15 Year Average 2010 to 2024
Quantity Standard 0.028
Quality Standard $1,250,533
Service Standard $35,015
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $35,015
Eligible Amount $46,849,976
Watson & Associates Economists Ltd. PAGE B-7
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Municipality of Bayham
Service Standard Calculation Sheet
Service:Services Related to a Highway - Bridges and Culverts
Unit Measure:Number of Bridges, Culverts & Structures
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value
($/item)
Bridges 7 7 7 7 7 7 7 7 7 7 7 7 6 6 6 $1,500,000
Culverts 8 8 8 8 8 8 8 8 8 8 8 8 9 9 9 $600,000
Total 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 0.0022 0.0021 0.0021 0.0021 0.0021 0.0020 0.0020 0.0020 0.0021 0.0021 0.0021 0.0021 0.0021 0.0020 0.0020
15 Year Average 2010 to 2024
Quantity Standard 0.0021
Quality Standard $999,333
Service Standard $2,099
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $2,099
Eligible Amount $2,807,927
Watson & Associates Economists Ltd. PAGE B-8
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Municipality of Bayham
Service Standard Calculation Sheet
Service:Services Related to a Highway - Sidewalks
Unit Measure:km of sidewalks and active transportation
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value
($/km)
Sidewalks 18.3 18.3 18.3 18.3 18.3 18.3 18.3 18.3 18.3 18.3 18.3 18.6 18.9 19.2 19.2 $330,000
Total 18 18 18 18 18 18 18 18 18 18 18 19 19 19 19
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 0.0026 0.0026 0.0026 0.0026 0.0025 0.0025 0.0025 0.0025 0.0025 0.0026 0.0026 0.0026 0.0026 0.0026 0.0026
15 Year Average 2010 to 2024
Quantity Standard 0.0026
Quality Standard $325,488
Service Standard $846
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $846
Eligible Amount $1,132,309
Watson & Associates Economists Ltd. PAGE B-9
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Municipality of Bayham
Service Standard Calculation Sheet
Service:Services Related to a Highway -Streetlights
Unit Measure:No. of Traffic Signals
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2020
Value
($/item)
2025 Value
($/item)
Streetlights (LED)- - - - - - - 428 428 428 436 444 452 460 468 $1,174 $4,000
Streethlights (Incandescent)428 428 428 428 428 428 428 - - - - - - - - $3,500
Total 428 428 428 428 428 428 428 428 428 428 436 444 452 460 468
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 0.061 0.061 0.061 0.060 0.059 0.058 0.058 0.058 0.059 0.060 0.061 0.063 0.063 0.063 0.063
15 Year Average 2010 to 2024
Quantity Standard 0.061
Quality Standard $3,770
Service Standard $228
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $228
Eligible Amount $305,158
Watson & Associates Economists Ltd. PAGE B-10
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Municipality of Bayham
Service Standard Calculation Sheet
Class of Service:Public Works - Facilities
Unit Measure:sq.ft. of building area
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2025
Bld'g
Value
($/sq.ft.)
Value/sq.ft.
with land,
site works,
etc.
Public Works Yard 14,850 14,850 14,850 14,850 14,850 14,850 14,850 14,850 14,850 14,850 14,850 14,850 14,850 14,850 14,850 $400 $466
Salt Dome 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 $100 $100
Salt Shed 920 920 920 920 920 920 920 920 920 920 920 920 920 920 920 $100 $100
Storage Shed - Straffordville 840 840 840 840 840 840 840 840 840 840 840 840 840 840 840 $175 $204
Storage Shed - Port Burwell - - - - - - 920 920 920 920 920 920 920 920 920 $175 $204
Total 21,410 21,410 21,410 21,410 21,410 21,410 22,330 22,330 22,330 22,330 22,330 22,330 22,330 22,330 22,330
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 3.07 3.06 3.04 2.99 2.95 2.91 3.02 3.03 3.10 3.11 3.13 3.15 3.09 3.04 3.02
15 Year Average 2010 to 2024
Quantity Standard 3.05
Quality Standard $354
Service Standard $1,079
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $1,079
Eligible Amount $1,443,648
Watson & Associates Economists Ltd. PAGE B-11
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Municipality of Bayham
Service Standard Calculation Sheet
Class of Service:Public Works - Vehicles & Equipment
Unit Measure:No. of vehicles and equipment
Description Useful Life 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value
($/Vehicle)
Pick-up -Ford 150 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $70,000
Pick up Ford 150 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $70,000
Pick up Ford 150 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $70,000
Pickup Chev 1500 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $70,000
Pickup Dodge 1500 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $70,000
1 ton Chev 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $91,000
2 Ton Ford 10 - - - - - - - - - - - 1 1 1 1 $107,000
International 03 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $510,000
International 04 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $510,000
Mack 08 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $510,000
Freightliner 09 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $510,000
Case Loader 15 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $204,000
Volvo Loader 15 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $204,000
Backhoe-john Deer 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $199,000
Grader John Deer 15 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $537,000
Tractor John Deer 15 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $268,000
Vermeer Vac Unit 0 - - - 1 1 1 1 1 1 1 1 1 1 1 1 $241,000
Cat Dozer 15 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $182,000
20-ton Float 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $40,000
Utility Trailer 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $8,000
Traffic Light Trailers 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $25,000
Shoulder Attachment 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $12,000
Paving Box (behind the truck)0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $50,000
Paving Box 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $15,000
Beach Rake 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $10,000
Total 24 24 24 25 25 25 25 25 25 25 25 26 26 26 26
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 0.0034 0.0034 0.0034 0.0035 0.0034 0.0034 0.0034 0.0034 0.0035 0.0035 0.0035 0.0037 0.0036 0.0035 0.0035
15 Year Average 2010 to 2024
Quantity Standard 0.0035
Quality Standard $177,611
Service Standard $622
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $622
Eligible Amount $831,754
Watson & Associates Economists Ltd. PAGE B-12
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Municipality of Bayham
Service Standard Calculation Sheet
Service:Parkland Development
Unit Measure:Acres of Parkland
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value
($/Acre)
Community Parks 28.04 28.04 28.04 28.04 28.04 28.04 28.04 28.04 28.04 28.04 28.04 28.04 28.04 28.04 28.04 $100,000
Parkette 2.36 2.36 2.36 2.36 2.36 2.36 2.36 2.36 2.36 2.36 2.36 2.36 2.36 2.36 2.36 $75,000
Total 30.40 30.40 30.40 30.40 30.40 30.40 30.40 30.40 30.40 30.40 30.40 30.40 30.40 30.40 30.40
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 0.0044 0.0043 0.0043 0.0042 0.0042 0.0041 0.0041 0.0041 0.0042 0.0042 0.0043 0.0043 0.0042 0.0041 0.0041
15 Year Average 2010 to 2024
Quantity Standard 0.0042
Quality Standard $98,493
Service Standard $414
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $414
Eligible Amount $553,490
Watson & Associates Economists Ltd. PAGE B-13
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Municipality of Bayham
Service Standard Calculation Sheet
Service:Parkland Amenities
Unit Measure:No. of parkland amenities
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value
($/item)
Ball Diamonds - Unlit 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $76,000
Ball Diamonds - Lit 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $500,000
Basketball Courts 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 $23,000
Benches 23 23 23 23 23 23 23 23 23 23 23 23 23 23 23 $500
Bleachers 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 $7,000
Concrete Pads 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $23,000
Digital Sign - - - - - - - - - - 1 1 1 1 1 $32,000
Fencing 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 $46,000
Flag Poles 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 $1,000
Lighting 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 $84,000
Parking Lots 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 $130,000
Pavilions 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 $225,000
Picnic Tables 136 136 136 136 136 136 136 136 136 136 136 136 136 136 136 $800
Pier 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $986,000
Playground Equipment 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 $266,000
Recycling Amenities 37 37 37 37 37 37 37 37 37 37 37 37 37 37 37 $2,300
Skatepark - 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $341,000
Soccer Fields 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 $15,000
Stairs 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $84,000
Tennis Court 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $33,000
East Beach Washroom Building 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $650,000
Total 255 256 256 256 256 256 256 256 256 256 258 258 258 258 258
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 0.037 0.037 0.036 0.036 0.035 0.035 0.035 0.035 0.036 0.036 0.036 0.036 0.036 0.035 0.035
15 Year Average 2010 to 2024
Quantity Standard 0.04
Quality Standard $32,689
Service Standard $1,164
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $1,164
Eligible Amount $1,557,084
Watson & Associates Economists Ltd. PAGE B-14
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Municipality of Bayham
Service Standard Calculation Sheet
Service:Parkland Trails
Unit Measure:Linear Metres of Paths and Trails
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2025 Value
($/ Linear
Metre)
Beach Trail - - - - - - 240 240 240 240 240 240 240 240 240 $250
Utility Corridor Trail 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 $100
Vienna Trail - - - - - - - - - - - 250 250 250 250 $250
Total 3,000 3,000 3,000 3,000 3,000 3,000 3,240 3,240 3,240 3,240 3,240 3,490 3,490 3,490 3,490
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 0.43 0.43 0.43 0.42 0.41 0.41 0.44 0.44 0.45 0.45 0.45 0.49 0.48 0.48 0.47
15 Year Average 2010 to 2024
Quantity Standard 0.45
Quality Standard $110
Service Standard $49
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $49
Eligible Amount $65,401
Watson & Associates Economists Ltd. PAGE B-15
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Municipality of Bayham
Service Standard Calculation Sheet
Service:Recreation Facilities
Unit Measure:sq.ft. of building area
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2025
Bld'g
Value
($/sq.ft.)
Value/sq.ft.
with land,
site works,
etc.
Straffordville Community Centre 7,640 7,640 7,640 7,640 7,640 7,640 7,640 7,640 7,640 7,640 7,640 7,640 7,640 7,640 7,640 $500 $562
Vienna Community Centre 4,022 4,022 4,022 4,022 4,022 4,022 4,022 4,022 4,022 4,022 4,022 4,022 4,022 - - $500 $562
Total 11,662 11,662 11,662 11,662 11,662 11,662 11,662 11,662 11,662 11,662 11,662 11,662 11,662 7,640 7,640
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 1.67 1.67 1.65 1.63 1.61 1.59 1.58 1.58 1.62 1.63 1.64 1.64 1.61 1.04 1.03
15 Year Average 2010 to 2024
Quantity Standard 1.55
Quality Standard $562
Service Standard $869
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $869
Eligible Amount $1,162,227
Watson & Associates Economists Ltd. PAGE B-16
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Municipality of Bayham
Service Standard Calculation Sheet Information listed is from page 37 in the 2020 Asset Management Plan
Service:Parks & Recreation Vehicles and Equipment
Unit Measure:No. of vehicles and equipment
Description 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Value
($/Vehicle)
Machinery and Equipment 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 $80,000
Total 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
Population 6,968 6,989 7,050 7,162 7,265 7,349 7,396 7,360 7,214 7,174 7,129 7,097 7,232 7,343 7,406
Per Capita Standard 0.0004 0.0004 0.0004 0.0004 0.0004 0.0004 0.0004 0.0004 0.0004 0.0004 0.0004 0.0004 0.0004 0.0004 0.0004
15 Year Average 2010 to 2024
Quantity Standard 0.0004
Quality Standard $83,275
Service Standard $33
D.C. Amount (before deductions)2051
Forecast Population 1,338
$ per Capita $33
Eligible Amount $44,569
Watson & Associates Economists Ltd. PAGE C-1
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Appendix C
Long-Term Capital and
Operating Cost Examination
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Appendix C: Long-Term Capital and Operating
Cost Examination
Municipality of Bayham
Annual Capital and Operating Cost Impact
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
development charge. As part of this analysis, it was deemed necessary to isolate the
incremental operating expenditures directly associated with these capital projects, factor
in cost savings attributable to economies of scale or cost sharing where applicable and
prorate the cost on a per unit basis (i.e., sq.ft. of building space, per vehicle, etc.). This
was undertaken through a review of the Municipality’s approved 2023 Financial
Information Return (F.I.R.).
In addition to the operational impacts, over time the initial capital projects will require
replacement. This replacement of capital is often referred to as lifecycle cost. By
definition, lifecycle costs are all the costs which are incurred during the life of a physical
asset, from the time its acquisition is first considered, to the time it is taken out of
service for disposal or redeployment. The method selected for lifecycle costing is the
sinking fund method which provides that money will be contributed annually and
invested, so that those funds will grow over time to equal the amount required for future
replacement. The following factors were utilized to calculate the annual replacement
cost of the capital projects (annual contribution = factor X capital asset cost) and are
based on an annual growth rate of 2% (net of inflation) over the average useful life of
the asset:
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Table C-1
Municipality of Bayham
Lifecycle Cost Factors and Average Useful Lives
Table C-2 depicts the annual operating impact resulting from the proposed gross capital
projects at the time they are all in place. It is important to note that, while Municipality
program expenditures will increase with growth in population, the costs associated with
the new infrastructure (i.e., facilities) would be delayed until the time these works are in
place.
Table C-2
Municipality of Bayham
Operating and Capital Expenditure Impacts for Future Capital Expenditures
Average Useful Life Factor
Facilities 50 0.01182321
Services Related to a Highway 50 0.01182321
Parkland Development 40 0.016555748
Vehicles 15 0.057825472
Small Equipment & Gear 10 0.091326528
Library Materials 10 0.091326528
Lifecycle Cost FactorsAsset
SERVICE/CLASS OF SERVICE
GROSS COST LESS
BENEFIT TO
EXISTING
ANNUAL LIFECYCLE
EXPENDITURES
ANNUAL
OPERATING
EXPENDITURES
TOTAL ANNUAL
EXPENDITURES
1.Fire Protection Services
1.1 Fire facilities, vehicles & equipment 2,080,000 107,737 129,523 237,260
2.Services Related to a Highway
2.1 Roads and Related 3,298,500 76,174 565,909 642,083
2.2 Public Works 1,130,000 80,514 11,899 92,413
3.Parks and Recreation Services
3.1 Park development, amenities, trails, recreation facilities, vehicles, and equipment 1,284,200 33,219 53,403 86,622
4.Growth Studies
4.1 Growth Studies 202,200 - - -
Total 7,994,900 297,644 760,734 1,058,378
Watson & Associates Economists Ltd. PAGE D-1
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Appendix D
D.C. Reserve Fund Policy
Watson & Associates Economists Ltd. PAGE D-2
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Appendix D: D.C. Reserve Fund Policy
D.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; subsection 7 (1), 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
to 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.
Subsection 43 (2) and O. Reg. 82/98 prescribe the information that must be included in
the Treasurer’s statement, as follows:
• opening balance;
• closing balance;
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• 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.
Recent changes arising from Bill 109 (More Homes for Everyone Act, 2022) provide that
the Council shall make the statement available to the public by posting the statement on
the website or, if there is no such website, in the municipal office. In addition, Bill 109
introduced the following requirements which shall be included in the treasurer’s
statement.
• For each service for which a development charge is collected during the year
o whether, as of the end of the year, the municipality expects to incur the
amount of capital costs that were estimated, in the relevant development
charge background study, to be incurred during the term of the applicable
development charge by-law, and
o if the answer to subparagraph i is no, the amount the municipality now
expects to incur and a statement as to why this amount is expected;
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• For any service for which a development charge was collected during the year
but in respect of which no money from a reserve fund was spent during the year,
a statement as to why there was no spending during the year.
Additionally, as per subsection 35 (3) of the D.C.A.:
35(3) If a service is prescribed for the purposes of this subsection,
beginning in the first calendar year that commences after the service is
prescribed and in each calendar year thereafter, a municipality shall spend
or allocate at least 60 per cent of the monies that are in a reserve fund for
the prescribed service at the beginning of the year.
The services currently prescribed are water, wastewater, and services related to a
highway. Therefore, as of 2023, a municipality shall spend or allocate at least 60
percent of the monies in the reserve fund at the beginning of the year. There are
generally two (2) ways in which a municipality may approach this requirement:
a) Include a schedule are part of the annual treasurer’s statement; or
b) Incorporate the information into the annual budgeting process.
Based upon the above, Figure 1 and Attachments 1 and 2, set out the format for which
annual reporting to Council should be provided. Attachment 3 provides for the schedule
for allocating reserve fund balances to projects.
D.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.
Watson & Associates Economists Ltd. PAGE D-5
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Figure D-1
Municipality of Bayham
Annual Treasurer's Statement of Development Charge Reserve Funds
Services to which the Development Charge Relates
Description
Services
Related to a
Highway
Fire
Protection
Services
Parks and
Recreation
Services Growth Studies
Opening Balance, January 1, ________0
Plus:
Development Charge Collections 0
Accrued Interest 0
Repayment of Monies Borrowed from Fund and Associated Interest 1 0
Sub-Total 0 0 0 0 0
Less:
Amount Transferred to Capital (or Other) Funds 2 0
Amounts Refunded 0
Amounts Loaned to Other D.C. Service Category for Interim Financing 0
Credits3 0
Sub-Total 0 0 0 0 0
Closing Balance, December 31, ________0 0 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
Total
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Figure D-2a
Municipality of Bayham
Attachment 1
Annual Treasurer's Statement of Development Charge Reserve Funds
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
Services Related to a Highway
Capital Cost A
Capital Cost B
Capital Cost C
Sub-Total - Services Related to Highways $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Fire Services
Capital Cost D
Capita Cost E
Capital Cost F
Sub-Total - Fire Services $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Parks and Recreation Services
Capital Cost G
Capita Cost H
Capital Cost I
Sub-Total - Parks and Recreation Services $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Watson & Associates Economists Ltd. PAGE D-7
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Figure D-2b
Municipality of Bayham
Attachment 1
Annual Treasurer's Statement of Development Charge Reserve Funds
Amount Transferred to Capital (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
Services Related to a Highway
Capital Cost J
Capita Cost K
Capital Cost L
Sub-Total - Services Related to a Highway $0 $0 $0 $0 $0 $0 $0
Fire Services
Capital Cost M
Capita Cost N
Capital Cost O
Sub-Total - Water $0 $0 $0 $0 $0 $0 $0
Parks and Recreation Services
Capital Cost P
Capita Cost Q
Capital Cost R
Sub-Total - Wastewater $0 $0 $0 $0 $0 $0 $0
Annual Debt
Repayment
Amount
Watson & Associates Economists Ltd. PAGE D-8
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Figure D-3
Municipality of Bayham
Attachment 2
Annual Treasurer's Statement of Development Charge Reserve Funds
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
Watson & Associates Economists Ltd. PAGE D-9
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Figure D-4
Municipality of Bayham
Attachment 3
Annual Treasurer's Statement of Development Charge Reserve Funds
Statement of Reserve Fund Balance Allocations
Service:
Services Related to a
Highway
Balance in Reserve Fund at Beginning of Year:
60% of Balance to be Allocated (at a minimum):
Projects to Which Funds Will be Allocated
Project Description Project Number
Total Growth-related Capital
Cost Remaining to be
Funded
Share of Growth-related
Cost Allocated to Date
Share of Growth-related Cost
Allocated - Current Year
Total $0 $0 $0
Watson & Associates Economists Ltd. PAGE E-1
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Appendix E
Local Service Policy
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Appendix E: Local Service Policy
This Appendix sets out the Municipality’s General Policy Guidelines on Development
Charges (D.C.) and local service funding for Services Related to a Highway,
Stormwater Management, Transit Bus Stops and Amenities, Parkland Development,
and Underground Linear Services. The guidelin es outline, in general terms, the size
and nature of engineered infrastructure that is included in the study as a development
charge project, versus 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. However, each application will be considered, in
the context of these policy guidelines as subsection 59 (2) of the Development Charges
Act, 1997 (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.
E.1 Services Related to a Highway
A highway and services related to a highway are intended for the transportation of people
and goods via many different modes including, but not limited to passenger automobiles,
commercial vehicles, transit vehicles, bicycles and pedestrians. The highway shall
consist of all land and associated infrastructure built to support (or service) this
movement of people and goods regardless of the mode of transportation employed,
thereby achieving a complete street. A complete street is the concept whereby a
highway is planned, designed, operated and maintained to enable pedestrians, cyclists,
public transit users and motorists to safely and comfortably be moved, thereby allowing
for the efficient movement of persons and goods.
The associated infrastructure to achieve this concept shall include, but is not limited to:
road pavement structure and curbs; grade separation/bridge structures (for any vehicles,
railways and/or pedestrians); grading, drainage and retaining wall features; culvert
structures; storm water drainage systems; utilities; traffic control systems; signage;
gateway features; street furniture; active transportation facilities (e.g. paved shoulders,
bike lanes, multi-use trails which interconnect the transportation network, etc.); transit
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lanes & lay-bys; roadway illumination systems; boulevard and median surfaces (e.g. sod
& topsoil, paving, etc.); street trees and landscaping; parking lanes & lay -bys; (excluding
on-street parking in the downtown) and driveway entrances; noise attenuation system s;
railings and safety barriers.
E.1.1 Local and Collector Roads (including land)
a. Collector Roads Internal to Development, inclusive of all land and associated
infrastructure – direct developer responsibility under s. 59 of the D.C.A. as a local
service.
b. Collector Roads External to Development, inclusive of all land and associated
infrastructure – if needed to support a specific development or required to link
with the area to which the plan relates, direct developer responsibility under s. 59
of the D.C.A.; otherwise, included in D.C. calculation to the extent permitted
under s. 5 (1) of the D.C.A. (dependent on local circumstances).
c. All local roads are considered to be the developer’s responsibility.
E.1.2 Arterial Roads
a. New, widened, extended or upgraded arterial roads, inclusive of all associated
infrastructure: Included as part of road costing funded through D.C.A., s. 5 (1).
b. Land acquisition for arterial roads on existing rights-of-way to achieve a complete
street: dedication under the Planning Act provisions (s. 41, 51 and s. 53) through
development lands; in area with limited development: included in D.C.s.
c. Land acquisition for arterial roads on new rights-of-way to achieve a complete
street: dedication, where possible, under the Planning Act provisions (s. 51 and
s. 53) through development lands up to the R.O.W. specified in the Official Plan.
d. Land acquisition beyond normal dedication requirements to achieve
transportation corridors as services related to highways including grade
separation infrastructure for the movement of pedestrians, cyclists, public transit
and/or railway vehicles: included in D.C.s.
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E.1.3 Traffic Control Systems, Signals and Intersection Improvements
a. On new arterial roads and arterial road improvements unrelated to a specific
development: included as part of road costing funded through D.C.s.
b. On non-arterial roads, or for any private site entrances or entrances to specific
development: direct developer responsibility under s. 59 of D.C.A. (as a local
service).
c. On arterial or collector road intersections with County roads: include in D.C.s or
in certain circumstances, may be a direct developer responsibility
d. Intersection improvements, new or modified signalization, signal timing &
optimization plans, area traffic studies for highways attributed to growth and
unrelated to a specific development: included in D.C. calculation as permitted
under s. 5 (1) of the D.C.A.
E.1.4 Streetlights
a. Streetlights on new arterial roads and arterial road improvements: considered
part of the complete street and included as part of the road costing funded
through D.C.s or in exceptional circumstances, may be direct developer
responsibility through local service provisions (s. 59 of D.C.A.).
b. Streetlights on non-arterial roads internal to development: considered part of the
complete street and included as a direct developer responsibility under s. 59 of
the D.C.A. (as a local service).
c. Streetlights on non-arterial roads external to development, needed to support a
specific development or required to link with the area to which the plan relates:
considered part of the complete street and included as a direct developer
responsibility under s. 59 of the D.C.A. (as a local service).
E.1.5 Transportation Related Pedestrian and Cycling Facilities
a. Paved shoulders, multi-use trails, cycle tracks, and bike lanes, inclusive of all
required infrastructure, located within arterial roads, County roads and provincial
highway corridors: considered part of the complete street and included in D.C.s,
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or, in exceptional circumstances, may be direct developer responsibility through
local service provisions (s. 59 of D.C.A.).
b. Paved shoulders, multi-use trails, cycle tracks, and bike lanes, inclusive of all
required infrastructure, located within or linking to non-arterial road corridors
internal to development: considered part of the complete street and include in
D.C.s.
c. Paved shoulders, multi-use trails, cycle tracks, and bike lanes, inclusive of all
required infrastructure, located within non-arterial road corridors external to
development and needed to support a specific development or required to link
with the area to which the plan relates: direct developer responsibility under s. 59
of D.C.A. (as a local service).
d. Multi-use trails (not associated with a road), inclusive of all land and required
infrastructure, that go beyond the function of a (parkland) recreational trail and
form part of the municipality’s active transportation network for cycling and/or
walking: included in D.C.s.
E.1.6 Noise Abatement Measures
a. Noise abatement measures external and internal to development where it is
related to, or a requirement of a specific development: direct developer
responsibility under s. 59 of D.C.A. (as a local service).
b. Noise abatement measures on new arterial roads and arterial road improvements
abutting an existing community and unrelated to a specific development: included
as part of road costing funded through D.C.s.
E.1.7 Transit Lanes and Lay-bys
a. Transit lanes and lay-bys located within municipal arterial and County road
corridors: considered part of the complete street and included in D.C.s
b. Transit lanes and lay-bys located within non-arterial road corridors internal to
development: considered part of the complete street and direct developer
responsibility under s. 59 of the D.C.A. (as a local service).
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c. Transit lanes and lay-bys located within non-arterial road corridors external to
development and needed to support a specific development or required to link
with the area to which the plan relates: direct developer responsibility under s. 59
of the D.C.A. (as a local service).
E.2 Parkland Development
E.2.1 Recreational Trails
a. Recreational trails (Multi-use trails) that do not form part of the municipality’s
active transportation network, and their associated infrastructure (landscaping,
bridges, trail surface, etc.), is included in area municipal parkland D.C.s.
E.2.2 Parkland
a. Parkland Development for Community Parks, District Parks, Neighbourhood
Parks and Village Squares: direct developer responsibility to provide at base
condition, as follows:
• Clearing and grubbing. Tree removals as per the subdivision’s tree
preservation and removals plan.
• Topsoil Stripping, screening, and stockpiling.
• Rough grading (pre-grading) to allow for positive drainage of the Park, with
minimum slopes of 2%. If necessary, this may include some minor drainage
tile work and grading as per the overall subdivision grading design complete
with any required swales or catch basins. Runoff from the development
property shall not drain into the park unless approved by the Manager,
Environment Services, Public Works.
• Spreading of topsoil to 150 mm depth (import topsoil if existing on-site is
insufficient to reach required depth).
• Seeding of site with Municipality-approved seed mix. Maintenance of seed
until acceptance by Municipality.
• Parks shall be free of any contaminated soil or subsoil.
• Parks shall not be mined for fill.
• Parks shall be conveyed free and clear of all encumbrances.
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• 100% of 1.5 m chain link perimeter fencing to the Municipal standards to
separate the development lands from the Municipal lands or lands to be
dedicated to the Municipality, unless the perimeter fencing is on land that will
be dedicated to the Municipality to fulfil the requirement of parkland
dedication under the Planning Act, in which case the cost shall be shared
50/50.
• When Park parcels cannot be developed in a timely manner, they shall be
graded to ensure positive drainage and seeded to minimize erosion and dust.
These shall be maintained by the developer until construction commences
thereon.
• The Park block shall not be used for topsoil or other construction material,
equipment storage, or sales pavilions.
• Required heritage features within the Park as set out within the Planning
approval conditions.
b. Program facilities, amenities, and furniture, within parkland: are included in D.C.s.
E.3.3 Landscape Buffer Blocks, Features, Cul-de-sac Islands, Berms, Grade Transition
Areas, Walkway Connections to Adjacent Arterial Roads, Open Space, Etc.
a. The cost of developing all landscape buffer blocks, landscape features, cul-de-
sac islands, berms, grade transition areas, walkway connections to adjacent
arterial roads, open space and other remnant pieces of land conveyed to the
municipality shall be a direct developer responsibility as a local service. Such
costs include but are not limited to:
• Pre-grading, sodding or seeding, supply and installation of amended topsoil, (to
the Municipality’s required depth), landscape features, perimeter fencing and
amenities and all planting.
• Perimeter fencing to the Municipal standard located on the public property
side of the property line adjacent land uses (such as but limited to arterial
roads) as directed by the Municipality.
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E.4 Natural Heritage System (N.H.S.)
N.H.S. includes engineered and in situ stream corridors, natural buffers for woodlots,
wetland remnants, etc. as well as subwatersheds within the boundaries of the
Municipality.
Direct developer responsibility as a local service provision including but not limited to
the following:
a. Riparian planting and landscaping requirements (as required by the Municipality,
Conservation Authority or other authorities having jurisdiction) as a result of
creation of, or construction within in the N.H.S. and associated buffers.
b. Perimeter fencing of the N.H.S. to the Municipal standard located on the public
property side of the property line adjacent land uses (residential, industrial,
commercial) as required by the Municipality.
c. All works to be in conformance with the Municipality’s “Restoration Framework”
for stream corridors, natural buffers and subwatersheds areas as directed by the
approved studies and reports related to the Secondary Plan that development
occurs in.
E.4.1 Infrastructure Assets Constructed by Developers
a. All infrastructure assets constructed by Developers must be designed in
accordance with the Municipality’s Engineering and Parks Standards Manual as
revised
b. All infrastructure assets shall be conveyed in accordance with the Municipality’s
Engineering and Parks Standards Manual as revised
c. Any Parks and Open Space infrastructure assets approved to be built by the
developer on behalf of the Municipality shall be in accordance with the
Municipality’s Park Development Methods Policy.
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E.5 Underground Services (Stormwater, Water and Sanitary Sewers)
E.5.1 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
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.
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3. The costs of the following items shall be paid through development charges:
a) external underground services involving trunk infrastructure 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
E.5.2. 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.
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.
c) 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 F
Asset Management Plan
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Appendix F: 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. Section 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 throughout its entire lifecycle. For growth-related works, the majority of capital
costs will be funded by the 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 wit h 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 for its
existing assets; however, it did not take into account future growth -related assets for all
services included in the D.C. calculations. As a result, the asset management
requirement for the D.C. must be undertaken in the absence of this information.
In recognition to the schematic above, the following table (presented in 202 5 $) has
been developed to provide the annualized expenditures and revenues associated with
new growth. Note that the D.C.A. does not require an analysis of the non -D.C. capital
needs or their associated operating costs so these are omitted from the table below. As
well, as all capital costs included in the D.C.-eligible capital costs are not included in the
Municipality’s A.M.P.s, the present infrastructure gap and associated fun ding plan have
not been considered at this time. Hence the following does not represent a fiscal impact
assessment (including future tax/rate increases) but provides insight into the potential
affordability of the new assets:
1. The non-D.C. recoverable portion of the projects that will require financing from
municipal financial resources (i.e., taxation, rates, fees, etc.). This amount has
been presented on an annual debt charge amount based on 20 -year financing.
2. Lifecycle costs for the 2025 D.C. capital works have been presented based on a
sinking fund basis. The assets have been considered over their estimated useful
lives.
3. Incremental operating costs for the D.C. services (only) have been included.
4. The resultant total annualized expenditures are approximately $1.23 million.
5. Consideration was given to the potential new taxation and user fee revenues
which will be generated as a result of new growth. These revenues will be
available to finance the expenditures above. The new operating revenues are
approximately $991,823. This amount, totaled with the existing operating
revenues of approximately $12.56 million, provides annual revenues of
approximately $13.55 million by the end of the period.
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6. In consideration of the above, the capital plan is deemed to be financially
sustainable.
Municipality of Bayham
Asset Management – Future Expenditures and Associated Revenues
2025$
2051 (Total)
Expenditures (Annualized)
Annual Debt Payment on Non-Growth
Related Capital1 167,200
Sub-Total - Annual Lifecycle $297,644
Incremental Operating Costs (for D.C.
Services)$760,734
Total Expenditures 1,225,578
Revenue (Annualized)
Total Existing Revenue3 $12,555,375
Incremental Tax and Non-Tax Revenue
(User Fees, Fines, Licences, etc.)$991,823
Total Revenues $13,547,198
3 As per Sch. 10 of FIR
1 Non-Growth Related component of Projects
2 Interim Debt Financing for Post Period Benefit
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Appendix G
Draft D.C. By-law
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Appendix G: Draft D.C. By-law
The Corporation of the Municipality of Bayham
By-law Number 2025 - __
A By-law to establish development charges for the Corporation of the
Municipality of Bayham
Whereas the Development Charges Act, 1997 (the "Act") provides that the council of a
municipality may by by-law impose development charges against land to pay for
increased capital costs required because of increased needs for services ;
And whereas a Development Charges Background Study has been completed in
accordance with the Act;
And whereas Council has before it a report entitled “Municipality of Bayham
Development Charge Background Study” prepared by Watson & Associates
Economists Ltd. dated June 5, 2025;
And whereas the Council of the Corporation of the Municipality of Bayham has given
notice of and held a public meeting on June 19, 2025 in accordance with the Act and
the regulations thereto;
Now Therefore, the Council of the Corporation of Municipality of Bayham Enacts as
follows:
1. DEFINITIONS
In this By-law the following items shall have the corresponding meanings:
"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 principal use, building or stru cture, but is
not an ancillary residential building.
"Act" means the Development Charges Act, 1997, S.O. 1997, c.27, as amended.
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“Affordable Residential Unit” means a Dwelling Unit that meets the criteria set out in
subsection 4.1 (2) or 4.1(3) of the Act.
“Agricultural use” means use or intended use for bona fide farming purpose :
a. Including (but not limited to):
i. cultivation of crops, whether on open land or in greenhouses,
including (but not limited to) fruit, vegetables, herbs, grains, field
crops, cannabis, sod, trees, shrubs, flowers, and ornamental plants;
ii. raising of animals, including (but not limited to) cattle, horses, pigs,
poultry, livestock, fish; and
iii. agricultural animal husbandry, dairying, equestrian activities,
horticulture, fallowing, pasturing, and market gardening;
b. But excluding:
i. retail sales activities; including but not limited to restaurants,
banquet facilities, hospitality facilities and gift shops;
ii. services related to grooming, boarding, or breeding of household
pets; and
iii. Marijuana production facilities.
“Ancillary residential building” means a residential building that would be ancillary to a
detached dwelling, semi-detached dwelling, or row dwelling.
“Apartment Unit” means any Dwelling Unit within a building containing three (3) or more
Dwelling Units where access to each Dwelling Unit is obtained through a common
entrance or entrances from the street level and the Dwelling Units are connected by an
interior corridor.
“Attainable residential unit” means a residential unit that meets the criteria set out in
subsection 4.1(4) of the Act.
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“Back-to-back townhouse dwelling” means a building containing more than two dwelling
units separated vertically by a common wall, including a rear common wall, that do not
have rear yards.
“Bedroom” means a habitable room, including a den, study, or other similar area, but
does not include a living room, dining room or kitchen.
“Board of Education” means a board as defined in subsection 1(1) of the Education Act,
R.S.O. 1990, c.E.2.
"Building permit" means a permit pursuant to the Building Code Act, 1992, S.O. 1992, c.
23, as amended.
“Building Code Act” means the Building Code Act, S.O. 1992; Chapter 23, as amended
and all Regulations thereto including the Ontario Building Code, 1997, as amended or
any successor legislation thereof.
“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
Municipal 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, lease, construct or improve facilities including,
(i) rolling stock with an estimated useful life of seven years or more,
(ii) furniture and equipment, other than computer equipment, and
(iii) materials acquired for circulation, reference or information purposes by a
library board as defined in the Public Libraries Act, R.S.O. 1990, c.P.44;
(e) to undertake studies in connection with any of the matters referred to in clauses
(a) to (d);
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(f) to complete the development charge background study required under section 10
of the Act; and
(g) interest on borrowing for those expenditures under clauses (a) to (d) above that
are growth-related;
required for provision of services designated in this by-law within or outside the
Municipality.
“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, which may also be
referred to as a Class of Service or Classes of Services.
“Commercial Use” means a Commercial Use as defined in the Zoning By-law.
“Council” means the Council of the Municipality of Bayham.
“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 the effect of increasing the size of usability thereof, and includes redevelopment.
“Development charge” means a charge imposed with respect to this By-law.
“Swelling 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.
“Farm building” means a building or structure that is integral to an Agricultural Use
including barns, silos or other similar buildings or structures, but excludes Residential
Uses and Marijuana Production Facilities.
“Garden Suite” means a Garden Suite as defined in the Zoning By-law.
“Grade” means the average level of finished ground adjoining a building or structure at
all exterior walls.
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“Gross floor area” means the total area of all floors above grade of a dwelling unit
measured between the outside surfaces of exterior walls or between the outside
surfaces of exterior walls and the centre line of party walls dividing the dwelling unit
from other dwelling unit or other portion of a building;
(a) In the case of a non-residential building or structure, or in the case of a mixed -
use building or structure in respect of 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 grade 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 use” means land, buildings or structures used for or in connection with
manufacturing by:
a. manufacturing, producing, and processing goods for a commercial purpose, as
well as storing and/or distribution of goods manufactured, produced, or
processed on site;
b. research or development in connection with manufacturing, producing, or
processing good for a commercial purpose;
c. retail sales by a manufacturer, producer, or processor of goods they
manufactured, produced, or processed, if the retail sales are at the site where the
manufacturing, production or processing takes place;
d. office or administrative purposes if it is:
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i. carried out with respect to manufacturing, producing, processing, storage
or distributing of something; and
ii. in or attached to the building or structure used for that manufacturing,
producing, processing, storage, or distribution;
e. but does not include a commercial self-storage facility.
“Institutional development ” shall have the same meaning as defined in Section 11.1 of
O.Reg. 82/98 of the Act.
“Interest Rate” means the annual rate of interest as set out in section 26.3 of the Act.
“Live/Work Unit” means a unit which contains separate Residential and Non-Residential
areas intended for concurrent Residential and Non -Residential Use, and which shares a
common wall or floor with direct access between the Residential and Non -Residential
areas.
“Local Board” means a public utility commission, public library board, local board of
health, or any other board, commission, committee or body or local authority
established or exercising any power or authority under any general or special act with
respect to any of the affairs or purposes of the Municipality or any part or parts thereof.
"Local Services" means those services or facilities 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, required as a condition of approval under section 51 of the Plan ning Act, or
as a condition of approval under section 53 of the Planning Act.
"Marijuana production facilities" means a building used for growth, producing,
processing, testing, destroying, storing or distribution, excluding retail sales, of medical
marijuana or cannabis authorized by a license issued under the Cannabis Regulations,
SOR/2018-144.
“Mixed-use building” means a building or structure used for both residential and non -
residential use.
“Multiple dwellings” means all dwellings other than single-detached, semi-detached, or
apartment units.
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“Municipal Act” means the Municipal Act, 2001, S.O. 2001, c. 25 .
“Municipality” means the Corporation of the Municipality of Bayham.
“Non-Profit Housing Development” means Development of a building or structure that
meets the criteria set out in section 4.2 of the 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.
“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, as amended or any successor thereto.
“Planning Act” means the Planning Act, R.S.O. 1990, c.P.13, as amended or updated
from time to time.
“Regulation” means any regulation made pursuant to the Act.
“Rental Housing” means Development of a building or structure with four (4) or more
Dwelling Units, all of which are intended for rented Residential Use.
“Residential” means the Use of land, buildings or structures or portions thereof for
human habitation and includes all types of Dwelling Units described herein.
“Semi-Detached Dwelling” means a Dwelling, Semi-Detached as defined in the Zoning
By-law.
“Service” or “Services” means one (1) or more of the Services set out in Schedule "A",
which is attached hereto and forms part of this By-law.
“Single Detached Dwelling” means a Dwelling, Single Detached as defined in the
Zoning By-law.
“Municipality” means the area within the geographic limits of the Municipality of
Bayham;
“Use” means either residential use or non-residential use;
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“Zoning By-Law” means the Zoning By-Law or By-laws of the Municipality of Bayham, or
any successor thereof passed pursuant to section 34 of the Planning Act, S.O. 1990.
2. Designation of Services/Class of Services
2.1 The categories of Services/Class of Services for which development charges
are imposed under this By-law are as follows:
(a) Services Related to a Highway;
(b) Fire Protection Services;
(c) Parks & Recreation Services; and
(d) Growth Studies;
2.2 The components of the Services and Class of Services designated in section
2.1 are described in Schedule A.
3. Application of By-law Rules
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 all lands in the Municipality of
Bayham whether or not the land or use thereof is exempt from taxation under
s. 13 or the Assessment Act, 1990.
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) the Municipality of Bayham or a local board thereof;
(b) a board of education;
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(c) the County of Peterborough;
(d) 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 Act if the development in respect of which development
charges would otherwise be payable is intended to be occupied and
used by the university;
(e) Non-Profit Residential Development;
(f) Affordable Residential Units as defined by the Act;
(g) Attainable Residential Units as defined by the Act; and
(h) Affordable Residential Units required pursuant to section 34 and 16(4)
of the Planning Act (Inclusionary Zoning).
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;
(v) a consent under section 53 of the Planning Act;
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(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.
Rules of Intensification
3.5 (1) Notwithstanding any other provision of this By-law, Development Charges
shall not be imposed with respect to:
(a) an enlargement to an existing Dwelling Unit;
(b) the creation of additional Dwelling Units equal to the greater of one (1)
or 1% of the existing Dwelling Units in an existing Residential rental
building containing four (4) or more Dwelling Units or prescribed
ancillary structure to the existing Residential building;
(2) Notwithstanding any other provision of this By-law, Development Charges
shall not be imposed with respect to the creation of any of the following in
existing Single Detached Dwellings, Semi-Detached Dwellings, Back-to-
back Townhouse Dwellings or Stacked Townhouse Dwellings:
(a) A second Dwelling Unit on a parcel of land on which Residential
Use, other than ancillary Residential Use, is permitted, if all
buildings and structures ancillary to the existing Residential
structure cumulatively contain no more than one (1) Dwelling Unit.
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(b) A third Dwelling Unit on a parcel of land on which Residential Use,
other than ancillary Residential Use, is permitted, if no building or
structure ancillary to the existing Residential structure contains
any Dwelling Units.
(c) One Dwelling Unit on a parcel of urban Residential land, if the
existing structure contains no more than two (2) Dwelling Units
and no other building or structure ancillary to the existing
Residential structure contains any Dwelling Units.
(3) Notwithstanding any other provision of this By-law, Development Charges
shall not be imposed with respect to the creation of any of the following in
new Single Detached Dwellings, Semi-Detached Dwellings, Back-to-back
Townhouse Dwellings or Stacked Townhouse Dwellings:
(a) A second Dwelling Unit on a parcel of land on which Residential
Use, other than ancillary Residential Use, is permitted, if all
buildings and structures ancillary to the new Residential structure
cumulatively will contain no more than one (1) Dwelling Unit.
(b) A third Dwelling Unit on a parcel of land on which Residential Use
other than ancillary Residential Use, is permitted, if no building or
structure ancillary to the new Residential structure contains any
Dwelling Units.
(c)One (1) Dwelling Unit in a building or structure ancillary to a new
Residential structure on a parcel of Residential land, if the new
Residential structure contains no more than two (2) Dwelling Units
and no other building or structure ancillary to the new Residential
structure contains any Dwelling Units.
3.6 Exemption for Industrial Development
3.6.1 For the purpose of sections 3.6.2 to 3.7.3 inclusive, the term “existing
industrial building” shall have the same meaning as that term has in the
Regulation and shall not include self-storage or mini-storage facilities.
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3.6.2 Notwithstanding any other provision of this By-law, but subject to sections
3.7.2 and 3.7.3 below, no development charge is payable with respect to the
enlargement of the total floor area of an existing industrial building where the
total floor area is enlarged by 50 percent or less:
3.7 Gross Floor Area of Existing Industrial Building Expansion
3.7.1 If the gross floor area of an existing industrial building is enlarged by greater
than 50 percent, the amount of the development charge payable in respect of
the enlargement is the amount of the development charge that would
otherwise be payable multiplied by the fraction determined as follows:
a) determine the amount by which the enlargement exceeds 50 percent
of the total floor area before the enlargement;
b) divide the amount determined under subsection 3.7(a) by the amount
of the enlargement.
3.7.2 For greater certainty in applying the exemption in this section, the gross floor
area of an existing industrial building is enlarged where there is a bona fide
increase in the size of the existing industrial building, the enlarged area is
attached to the existing industrial building, there is a direct means of ingress
and egress from the existing industrial building to and from the enlarged area
for persons, goods and equipment and the existing industrial building and the
enlarged area are used for or in connection with an industrial purpose as set
out in subsection 1(1) of the Regulation. Without limiting the generality of the
foregoing, the exemption in this section shall not apply where the enlarged
area is attached to the existing industrial building by means only of a tunnel,
bridge, canopy, corridor, or other passageway, or through a shared below -
grade connection such as a service tunnel, foundation, footing or parking
facility.
3.7.3 The exemption for an existing industrial building provided by this section shall
be applied up to a maximum of 50 percent of the gross floor area before the
first enlargement for which an exemption from the payment of development
charges was granted pursuant to this By-law or any previous development
charges by-law made pursuant to the Act or its predecessor legislation.
Development charges shall be imposed in accordance with Schedule B with
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respect to the amount of floor area of an enlargement that results in the gross
floor area of the industrial building being increased by greater than 50 percent
of the total floor area of the existing industrial building .
3.7.4 For the purposes of this section, despite any new sites created which result in
an existing industrial building being on a site separate from its enlargement or
enlargements for which an exemption was granted under this section, further
exemptions, if any, pertaining to the existing industrial building shall be
calculated in accordance with section 3.7.2 on the basis of its site prior to any
division.
3.8 Other Exemptions
Notwithstanding the provision of this By-law, development charges shall not be
imposed with respect to:
• a hospital as defined under the Public Hospitals Act, R.S.O. 1990, c. P.40;
• that portion of a Place of Worship that is exempt from taxation under the
Assessment Act; and
• a Farm Building.
3.9 Discounts for Rental Housing (for profit)
Notwithstanding subsections 3.11 and 3.12, the Development Charges payable
for Residential Development, where the Dwelling Units are intended for rented
Residential Use, will be reduced based on the number of bedrooms in each
Dwelling Unit as follows:
(i) Three or more bedrooms – 25% reduction
(ii) Two bedrooms – 20% reduction
(iii) All other bedroom quantities – 15% reduction
3.10 Reduction of Development Charges with Respect to Redevelopment and
Conversion
Despite any other provision of this By-law, 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 development charges in regard to
Watson & Associates Economists Ltd. PAGE G-15
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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 subsection 3.11 of this by-law by the number, according to
type, of dwelling units that have been or will be demolished or converted
to another principal use; and provided that such amounts shall not
exceed, in total, the amount of the development charges otherwise
payable with respect to the redevelopment.
b) in the case of a non-residential building or structure or, in the case of
mixed-use building or structure, the non-residential uses in the mixed-use
building or structure, an amount calculated by multiplying the applicable
development charges under subsection 3.12 by the gross floor area that
has 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.
Amount of Charges
3.11 Residential
The development charges set out in Schedule B to this By -law shall be
imposed on residential uses of lands, 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, including the residential component of a live/work unit, according to
the type of residential unit, and calculated with respect to each of the services
according to the type of residential use.
3.12 Non-Residential
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The development charges described in Schedule B to this By -law shall be
imposed on non-residential uses of lands, buildings, or structures, and, in the
case of a mixed-use building or structure, on the non-residential uses in the
mixed-use building or structure, including the non-residential component of a
live/work unit, and calculated with respect to each of the services according to
the gross floor area of the non-residential use.
Time of Calculation and Payment of Development Charges
3.13 Development charges imposed under this By-law are calculated, payable,
and collected upon issuance of the first building permit for the development.
3.14 Notwithstanding subsections 3.13, development charges for rental housing
and institutional developments are due and payable in 6 equal annual
payments commencing with the first instalment payable on the earlier of the
date the first occupancy permit is granted or the date of first occupancy, and
each subsequent instalment, including interest calculated in accordance with
subsection 26.3 of the Act.
3.15 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
approval of the application occurred within 18 months of building permit
issuance, the development charges under subsections 3.1 1 and 3.12 shall be
calculated on the rates set out in Schedule “B” on the date of the planning
application, including interest in accordance with subsection 26.3 of the Act.
Where both planning applications apply development charges under
subsections 3.11 and 3.12 shall be calculated on the rates, including interest
at a rate of the average prime rate plus 1% as defined by Section 26.3 of the
Act, payable on the anniversary date each year thereafter, set out in
Schedule “B” on the date of the later planning applica tion, including interest.
3.16 Notwithstanding subsections 3.13 to 3.15 and in accordance with section 27
of the Act, 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.
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4. Payment by Services
4.1 Despite the payment required under subsections 3.13 to 3.16, 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 relates 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 1, 2026 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 and Classes of Services Designated
in Subsection 2.1
Schedule B – Residential and Non-Residential Development Charges
7. Conflicts
7.1 Where the Municipality of Bayham and an owner or former owner have
entered into an agreement with respect to land within the area to which this
By-law 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 subsection 7.1, where a development which is the subject of
an agreement to which subsection 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.
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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 XXXX XX, 2025.
10. Date By-law Expires
10.1 This By-law will expire at 12:01 AM on XXXX XX, 2035 unless it is repealed
by Council at an earlier date.
Passed this ____ day of _____________ 2025.
________________________________
Mayor
________________________________
Clerk
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Schedule A
To By-law No. 2025-__
Municipality of Bayham Components of Services Designated in Subsection 2.1
Municipal-Wide Services
• Services Related to a Highway
o Roads, Bridges, Culverts, Sidewalks, Streetlights
o Public Works Facilities, Vehicles, and Equipment
• Fire Protection Services
o Facilities, Vehicles, and Equipment
• Parks & Recreation Services
o Parkland, Amenities, Trails, Facilities, Vehicles, and Equipment
• Growth Studies
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SCHEDULE “B”
BY-LAW NUMBER __-____
SCHEDULE OF DEVELOPMENT CHARGES
NON-RESIDENTIAL
Single and Semi-
Detached Dwelling Multiples Apartments - 2
Bedrooms +
Apartments -
Studio and 1
Bedroom
Special
Care/Special
Dwelling Units
(per sq.ft. of Gross
Floor Area)
Municipal Wide Services/Class of Service:
Services Related to a Highway 6,125 3,956 3,152 1,854 1,770 2.91
Fire Protection Services 2,876 1,857 1,480 871 831 1.37
Parks and Recreation Services 1,700 1,098 875 515 491 0.21
Growth Studies 702 453 361 212 203 0.33
Total Municipal Wide Services/Class of Services 11,403 7,364 5,868 3,452 3,295 4.82
Service/Class of Service
RESIDENTIAL
Public Meeting
June 19, 2025
Municipality of Bayham
Development Charges Background Study
0
Agenda
•Overview of Process – Timelines
•Development Charges Act Overview
•Legislative Changes to the Development Charges Act
•Proposed Policies
•Growth Forecast and Rates
•Survey of Municipal D.C.s
•Next Steps
•Questions
1
Overview of Process –Timelines
2
1 July 2023 to April 2025
Data collection, staff review, D.C. calculations and policy work
3 May 2025
Finalize Calculations and Policies
5 June 19, 2025
Mandatory Public Meeting
6 August 21, 2025
Council Consideration of By-law
2 May 1, 2025
Council Workshop
4 June 5, 2025
Release of Final Background Study
Municipality of Bayham
Development Charges Overview
3
Development Charges
•To recover the capital costs associated with residential and non-
residential growth within a municipality
•The capital costs are in addition to what costs would normally be
constructed as part of a subdivision (i.e. internal roads, sewers,
watermains, roads, sidewalks, streetlights, etc.)
•Municipalities are empowered to impose these charges via the
Development Charges Act (D.C.A.)
4
Growth and
Development
Capital Needs to
Support Growth
Funding for Capital
Needs to Support
Growth
Municipal Financial Planning Framework
Official Plan
Master Plans
Development
Charges
5
Relationship Between Needs to Service Growth vs.
Funding
6
Service New
Growth/Users
Development
Charges
Rates, Taxes,
Reserves, etc.
Methodology for Calculating a D.C.
The following provides the overall methodology to calculating the charge:
1.Identify amount, type and location of growth
2.Identify servicing needs to accommodate growth
3.Identify capital costs to provide services to meet the needs
4.Deduct:
i.Grants, subsidies and other contributions
ii.Benefit to existing development
iii.Amounts in excess of 15-year historical service calculation
iv.D.C. Reserve funds (where applicable)
5.Net costs then allocated between residential and non-residential benefit
6.Net costs divided by growth to calculate the D.C.7
Summary of the D.C. Calculations
8
$Cost of Infrastructure
Required to
Accommodate Growth
Residential and Non-
residential Growth
Development Charge
per Unit
(for Residential Growth)
Development Charge
per Sq.ft. or per Sq.m
(for Non-residential Growth)
Development
Charges
9
1.Water
2.Wastewater
3.Storm water drainage
4.Services related to a
highway
5.Electrical power services
6.Toronto-York subway
extension
7.Transit
8.Waste diversion
9.Policing Services
10. Fire protection
11. Ambulance
12. Library
13. Long-term Care
14. Parks and Recreation
15. Public Health services
16.Childcare and early years
services
17. Provincial Offences Act
18. Emergency Preparedness
19. Airports (Waterloo Region only)
Studies Related to the
Above Services have
also been included
D.C. Eligible Services
Services examined in
this D.C. Background
Study.
Bayham’s Water and
Wastewater D.C.
through by-law 2022-
067 was not reviewed
through this study.
Maximum Charge Capped by Service Standard Calculation
•Service standard measure provides a ceiling on the level of the charge
which can be imposed
•The D.C.A. requires the calculation to be based on “quantity” and “quality”
measures and are averaged over the past 15 years
•Note that this measure does not apply to water, wastewater, storm water
and Transit (which now has a forward-looking service standard)
10
Capital Costs
•Capital Cost Definition has been broadened to include:
•Acquire land or interest in land
•Improve land
•Acquire, lease, construct or improve buildings, facilities and structures (includes furniture
and equipment)
•Equipment and rolling stock
•Capital component of a lease for the above
•Circulation materials for Libraries
•Studies
•Interest on money borrowed to pay for the above
•Any planning horizon for future capital needs can be used, except for Transit
(which is limited to 10 years)
•May include authorized costs incurred or proposed to be incurred by others on
behalf of a municipality/local board
11*Proposed to be removed as an eligible capital cost by Bill 23 – not currently in effect.
Limitations on Capital
•Certain Capital Costs may not be included:
•Parkland Acquisition
•Vehicle & Equipment with avg. life of <7 years
•Computer Equipment that is not integral to the delivery of the services
•Possible removal of land acquisition for services (yet to be defined by the
regulations)
12*Proposed to be removed as an eligible capital cost by Bill 23 – not currently in effect.
Municipality of Bayham
Legislative Changes to the D.C.A.
13
1.Bill 73: January 2016
2.Bill 108: June 2019
3.Bill 138: December 2019
4.Bill 197: July 2020
5.Bill 213: December 2020
6.Bill 109: April 2022
7.Bill 23: November 2022
8.Bill 134: December 2023
9.Bill 185: June 2024
10.Bill 17: June 2025
History of D.C.s
Planning
Act
(lot levies)
•Mid 1950’s
to 1989
D.C.A.
1989
•November
1989 to
Aug.1999
D.C.A.
1997
•September
1999 to
present
Amendments to D.C.A. 1997
14
Recent Changes to D.C. Legislation
15
Bill 23: More Homes, Built Faster Act, 2022
•Additional D.C. exemptions:
•Inclusionary zoning units
•Non-profit housing
•Additional residential units
•Affordable owned/rental units
•Attainable units (currently not in force)
•Rental housing discount (based on number of bedrooms – 15%-25%)
•Removal of housing as an eligible D.C. service
•Capital cost amendments (restrictions to remove studies and potentially land)
•Mandatory phase-in of D.C. (maximum charge of 80%, 85%, 90%, 95%, 100% for first five
years of the by-law)
•Maximum Interest Rate for Installments and D.C. Freeze (maximum interest rate would be set
at the average prime rate plus 1%)
•Requirement to Allocate 60% of the monies in the reserve funds for Water, Wastewater, and
Services Related to a Highway
•D.C. by-law expiry extended to 10 years
Note: The Province passed Bill 185 on June 6, 2024, which removed these requirements (see next slide)
Recent Changes to D.C. Legislation – Cont’d
16
Bill 134: Affordable Homes and Good Jobs Act, 2023
•Revised definition for affordable unit:
Affordable Rental Unit: rent is less than 30% of the 60th percentile of income for rental households or
average market rent set out in Bulletin*
Affordable Owned Unit: cost is less than 30% of the 60th percentile of income for households in the
municipality or 90% of the average purchase price as defined in Bulletin*
Bill 185: Cutting Red Tape to Build More Homes Act, 2024
•Removal of mandatory phase-in of charges
•Re-inclusion of studies as an eligible capital cost (included in calculated rates)
•D.C. rate freeze for zoning by-law amendment applications: reduction from two years to 18
months
•Process for minor amendments to D.C. by-laws
•Modernizing public notice requirements
*Bulletin published annually by Ministry of Municipal Affairs and Housing
Recent Changes to D.C. Legislation – Cont’d
17
Bill 17: Protect Ontario by Building Faster and Smarter Act, 2025
On June 5, 2025, Bill 17: Protect Ontario by Building Faster and Smarter Act, 2025 received
Royal Assent.
The following provides a summary of the changes to the D.C.A:
•Exemption for long-term care homes;
•Deferral of D.C. payment to occupancy for residential development;
•Removal of interest for legislated instalments;
•Ability for residential and institutional development to pay a D.C. earlier than a by-law requires;
•Grouping of services for the purposes of using credits; and
•Defining local services in the regulations.
Proposed Policies
18
Municipality of Bayham
Mandatory D.C. Exemptions/ Discounts
•Upper/Lower Tier Governments and School Boards;
•Industrial building expansions (may expand by 50% with no D.C.)
•Development of lands intended for use by a university
•Up to 2 apartments in an existing or new detached, semi-detached, or
rowhouse
•Add one additional unit or 1% of existing units in an existing rental residential
building
•Affordable inclusionary zoning units
•Non-profit housing
•Discount for rental housing (based on number of bedrooms – 15% to 25%)
•Affordable rental unit
•Affordable owned unit
•Attainable units (not yet in force)
19
Discretionary Exemptions
20
•Reduce in part or whole D.C. for types of development or classes of development (e.g. industrial or
churches)
•May phase-in over time
•Redevelopment credits to recognize what is being replaced on site (not specific in the Act but provided by
case law)
Discretionary Exemptions for Council’s Consideration:
Places of
Worship
Bona
fide
farms Cemetery
Hospitals
Changes to the D.C.A. – Affordable/Attainable Definitions
*Bulletin published by the Ministry of Municipal Affairs and Housing
Bill 134
21
Affordable Amounts (Bayham)
Affordable Monthly
Rent:
Affordable Owned
Unit:
Bill 134 Definitions
Affordable Rental Unit: rent is less than 30% of
the 60th percentile of income for rental households
or average market rent set out in a new Bulletin*
Affordable Owned Unit: cost is less than 30% of
the 60th percentile of income for households in the
municipality or 90% of the average purchase price
as defined in a new Bulletin*
Attainable Unit: yet to be defined by legislation
Definitions for “affordable” under the D.C.A. were updated by Bill 134, which received Royal Assent on
December 4, 2023. As per s 4.1 of the D.C.A. the affordable rental unit and affordable owned unit exemptions
are in effect as of June 1, 2024.
Bachelor: $1,013
1 Bedroom: $1,097
2 Bedroom: $1,477
3+ Bedroom: $1,665
$355,700 for all Unit
types
22
Program facilities, amenities,
and furniture within parkland
Recreational trails
Parkland development at base
condition as set out in Local
Service Policy (Appendix E)
Landscape buffer blocks,
features, cul-de-sac islands,
berms, grade transition areas,
walkway connections to
adjacent roads, open space,
etc.
Natural heritage systems
(N.H.S)
Arterial roads, sidewalks,
streetlights, and associated
land and infrastructure
Collector roads internal to
development, inclusive of all
land and associated
infrastructure
Collector roads external to
development, inclusive of all
land and associated
infrastructure if needed to
support or link a specific
development (dependent on
local circumstances)
Parks and
Recreation Roads
Development
Charges
Direct Developer
Responsibility
(i.e. Local
Service)
•Section 59.1(1) and (2) of the Act “No
Additional Levies” - prohibits municipalities
from imposing additional payments or requiring
construction of a service not authorized under
the D.C.A. therefore, need to be clear:
•What will be included in the D.C.; and
•What will be required by developers as part of
their development agreements
•Items considered in Local Service Policies may
include:
•Local, rural, collector & arterial roads,
•Intersection improvements & traffic signals,
•Streetlights & sidewalks,
•Bike Routes/Bike Lanes/Bike Paths/Multi-Use
Trails/Naturalized Walkways,
•Noise Abatement Measures,
•Land dedications/easements,
•Water, Wastewater & Stormwater, and
•Park requirements.
Local roads, sidewalks,
streetlights, and associated
infrastructure
Collector roads, sidewalks,
streetlights, and associated
infrastructure (dependent on
local circumstances)
Local Service Policy
Municipality of Bayham
Growth Forecast and Rates
23
Summary of Draft Growth Forecast
24
10 Year Long Term
2025 to 2034 2025 to 2051
(Net) Population Increase 545 1,338
Residential Unit Increase 252 652
Non-Residential Gross Floor Area Increase (sq.ft.)103,000 258,400
Source: Watson & Associates Economists Ltd. Forecast 2025
Measure
Development Charges
25
NON-RESIDENTIAL
Single and Semi-
Detached Dwelling Multiples Apartments - 2
Bedrooms +
Apartments -
Studio and 1
Bedroom
Special
Care/Special
Dwelling Units
(per sq.ft. of Gross
Floor Area)
Municipal Wide Services/Class of Service:
Services Related to a Highway 6,125 3,956 3,152 1,854 1,770 2.91
Fire Protection Services 2,876 1,857 1,480 871 831 1.37
Parks and Recreation Services 1,700 1,098 875 515 491 0.21
Growth Studies 702 453 361 212 203 0.33
Total Municipal Wide Services/Class of Services 11,403 7,364 5,868 3,452 3,295 4.82
Service/Class of Service
RESIDENTIAL
Survey of Municipal D.C.s
26
Municipality of Bayham
Survey of Comparator Municipalities – Single/Semi-Detached
27
Survey of Comparator Municipalities – Commercial (per sq.ft.)
28
Survey of Comparator Municipalities – Industrial (per sq.ft.)
29
Next Steps
30
July 2023 to April 2025
Data collection, staff review, D.C. calculations and policy work
May 2025
Finalize Calculations and Policies
June 19, 2025
Mandatory Public Meeting
August 21, 2025
Council Consideration of By-law
May 1, 2025
Council Workshop
June 5, 2025
Release of Final Background Study
Questions
31
Questions