The City of Mississauga

1
The City of Mississauga

• 2004 DEVELOPMENT CHARGES STUDY
• PUBLIC MEETING
• June 28, 2004
• HEMSON Consulting Ltd.

2
Purpose of Public Meeting

• The Development Charges Act, Sec 12, (1), a,
  Requires a Municipality to Hold At Least One
  Public Meeting Before Passing a Development
  Charge By-law
• The Purpose of the Meeting is to Provide
  Information to the Public and Receive Comments
  and Feedback
• Any Person Attending the Meeting May Make
  Representations to Council

3
Overview Of The Development Charges Act, 1997

• The Maximum Life of a DC By-law Is 5 Years From
  Date of Passage (May Be Repealed/Replaced
  Earlier)
• The City of Mississauga Passed Its DC By-law on
  August 11, 1999. Therefore, a New By-law Must Be
  Enacted by August 11, 2004.
• If a New By-law Is Not Passed the City Cannot
  Continue to Collect Development Charges

4
Overview Of The DCA, 1997 (Contd)

• Service Exclusions
• cultural and entertainment facilities, including
  museums, theatres and art galleries
• tourism facilities including convention centres
• parkland acquisition including open spaces and
  trails (except land for indoor recreation
  buildings)
• Hospitals (Region)
• headquarters for general administration of
  municipalities and local boards
• waste management (Region)
• other services prescribed by regulation (none
  have been prescribed as yet)

5
Overview Of The DCA, 1997 (Contd)

• The Full Growth-Related Net Capital Cost of the
  Following Services Can Be Included in the
  Development Charge Calculation
• 100 Services
• Fire Protection (City)
• Storm Water Drainage and Control (City)
• Roads and Related Works (City Region)
• Water (Region)
• Waste Water (Region)
• Police Services (Region)

6
Overview Of The DCA, 1997 (Contd)

• For All Other Eligible Services - Mandatory 10
  Reduction Requiring Funding From Other Sources
• Discounted Services
• General Government e.g. Master Plans
• Library Services
• Recreation
• Public Works e.g. Fleet, Works Yards
• Transit
• LAC Debt (Grandfathered from Previous DCA)

7
Overview Of The DCA, 1997 (Contd)

• Capital Costs Include Costs For
• acquiring and improving land, excluding parkland
• buildings and structures
• rolling stock with a useful life of 7 years or
  more
• furniture and equipment, other than computer
  equipment
• studies (e.g. DC Study, Engineering Studies,
  Secondary Plans)
• interest and financing costs

8
Overview Of The DCA, 1997 (Contd)

• Growth Forecast Required
• For 10 Years and to 2021 by Type and Location
• Based on Forecast Prepared by Hemson Consulting
  and Adopted by Council in December, 2003
• Service Levels Form a Key Basis for Calculating
  the Development Charge
• Maximum Allowable Charge Based on Average Service
  Level in Preceding 10 Years Applied to Future
  Growth Forecast
• Quantitative and Qualitative Elements of Service
  Level Must Be Considered

9
Overview Of The DCA, 1997 (Contd)

• Merely Having Had Service In The Past Is Not
  Sufficient To Justify Development Charge
• Council Must Express Its Intent To Continue To At
  Least Maintain Historic Average Service Level
• Increase in Service Forms Part of Official Plan
• Approval of Growth-Related Capital Forecast
• DC By Service Is Based On Lesser Of Maximum
  Allowable Or Growth-Related Capital Included in
  Approved Capital Forecast

10
Citys Growth Forecast

• Growth Forecast
• For 10 Years and to 2021 by Type and Location
• Based on Forecast Prepared by Hemson Consulting
  Ltd. and Adopted By Council in December, 2003
• Growth Forecast Considers Housing Mix and
  Different Densities

11
Citys Growth Forecast
12
Citys Ten Year Average Service Level

• Historic Average Service Level
• quantitative and qualitative elements accounted
  for
• various components (e.g. land, buildings,
  equipment) combined in dollar terms
• engineered services (roads and storm water
  management) based on engineering and regulatory
  standards

13
Citys Ten Year Average Service Level
           
14
Growth Related Capital Forecast

• Only Growth Related Costs Can be Included In the
  Development Charge
• Portions of Projects Related to Prior Growth,
  Replacement, or Benefit to Existing Community
  Must Be Financed By Other City Sources
• Projects Oversized for Future Growth May Be
  Recovered from Future Development

15
Growth Related Capital Forecast

• General Government
• DC studies
• library and recreation master plans
• Library
• Churchill Meadows branch
• Meadowvale branch
• collection materials

16
Growth Related Capital Forecast

• Fire Service
• expansion/refurbishment of training facility
• station expansions
• 1 new aerial truck
• studies
• Recreation
• construction of the Sports Complex
• additional indoor recreation space
• new parks and facilities (splash pads, playing
  fields, trails, artificial turf soccer fields)
• City Garden Park
• Port Credit Memorial

17
Growth Related Capital Forecast

• Transit
• 104 new buses
• equipment
• bus shelters and loops
• bus storage facility
• Meadowvale Satellite Terminal
• land for bus loops/transitway
• Public Works
• southwest works yard
• additional depots/yards
• fleet additions

18
Growth Related Capital Forecast

• Roads and Related Infrastructure (to 2021)
• widenings/improvements throughout City
• grade separations
• intersection improvements
• traffic signals
• sidewalks
• bicycle pathways
• transportation studies
• bus bays

19
Growth Related Capital Forecast

• Storm Water Management
• erosion control
• conveyance
• storm water ponds
• oversizing

20
Growth Related Capital Forecast
21
Growth Related Capital Forecast

• 688.6 Million Net Capital Cost
• 491.4 Million Included in Proposed Development
  Charge (after discount)
• 75.0 Million Funded From Prior Growth (Existing
  Development Charge and Lot Levy Reserves)
• 7.3 Million For Post 2013/Service Upgrades
  (Future Development Charges and Non-DC Revenue)
• Remaining Share To Be Funded From Non-DC Revenue
• 15.0 million for 10 discount
• 99.9 million for replacement/benefit to existing

22
Residential / Non-Residential Allocation
23
Calculated Rates Are Maximum Charges

• The Rates As Calculated Are The Maximum Charge
  Based On Identified Growth Related Capital
  Forecast and DCA
• Reducing the Rates Would Impact the Timing and
  Magnitude of the Capital Program

24
Published Residential Charges
25
Revised Residential Charges

• Published Residential Charges Have Been Revised
  Due to Advancing the Timing of Churchill Meadows
  Projects in Library and Recreation
• Revised Unit Charges Are
• Other Residential 8,975 (21)
• Apartments 6,411 (15)
• Small Units 70 sq.m or Less 3,334 (8)

26
Published Non-Residential Charges
27
Revised Non-Residential Charges

• After Publication of the DC Background Study,
  Hemson Reviewed the GFA Forecast As Requested By
  the Development Community
• As a Result of This Review the GFA Forecast Has
  Been Increased To 3.76 Million Sq.m From 3.27
  Million Sq.m
• The Revised Non-Residential Charges are
• Non-Industrial 41.00 (-8.12)
• Industrial 33.31 (-6.60)
• No Impact on Overall DC Revenues or Projects

28
Storm Water Management Charge

• Storm Water Management Charge is Calculated on a
  Per Net Hectare Basis
• Applied to All Vacant Residential and
  Non-Residential Lands That Have Not Previously
  Paid A Charge
• Calculated Charge is 46,373 per net ha

29
Comparison to Existing Rates
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Administrative Issues

• Most Past Practices Maintained
• New By-law Amendments to Codify Existing
  Arrangements
• Some Changes to Simplify or Improve
  Administrative Practices
• Some Changes to Improve Fairness

31
Codify Existing Arrangements

• High Density Developments Can Pay DC On Floor To
  Ceiling Vs Foundation Permit
• Calculation Of Payments In Lieu Of DC On
  Provincial Federal Properties
• DCs On Peel Region Corporations Like Non-profit
  Housing (Same As Brampton)
• Agreements On Industrial Spec Buildings
• No Building Permit-type Developments

32
Simplify or Improve Admin Practises

• Indexing To Match Peel Region Dates
• Allow Demolition Credits Where The Demo Comes
  During Or After Construction 1991 Time Limit

33
Better Fairness

• Hazard Lands Exempt From Storm Charges
• Small Apartment Rate Changed To Small Unit Rate
  (Regardless Of Building Type)
• Special Care/Special Needs Dwelling Created
• Pay Apartment Or Small Unit Vs Non-residential
  Rate

34
Better Fairness

• Commercial Parking Garages Not Required By Zoning
  Will Pay DCs
• Below Grade Areas Used For Lunch Rooms, Lounges
  Or Fitness Areas Will Pay DCs
• Tank Farm-type Businesses Will Pay DCs

35
Proposed Transition

• Building Permits Applications Received Before
  July 6 And Processed By Dec. 23 Pay Old Rates
• Permits Applications Received On Or After July 7,
  Pay New Rates

36
Next Steps

• Receive Public Input
• Staff to Review Issues Raised and Make Revisions
  Where Appropriate
• Present Final Study and By-law to Council for
  Approval July 7, 2004
• City Continue to Advocate For Changes to the DCA