MUNICIPALITY OF NORTH PERTH DEVELOPMENT CHARGE BACKGROUND STUDY AND PROPOSED BY-LAW CONSOLIDATED REPORT ADDENDUM NO.1 ADDENDUM NO.2 ADDENDUM NO.

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1 MUNICIPALITY OF NORTH PERTH DEVELOPMENT CHARGE BACKGROUND STUDY AND PROPOSED BY-LAW CONSOLIDATED REPORT (AUGUST 26, 2014) ADDENDUM NO.1 (JULY 9, 2014) ADDENDUM NO.2 (AUGUST 15, 2014) ADDENDUM NO.3 (AUGUST 22, 2014) ORIGINAL REPORT JULY 4, 2014

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3 CONTENTS Page EXECUTIVE SUMMARY (i) 1. INTRODUCTION 1.1 Purpose of this Document Summary of the Process CURRENT MUNICIPALITY OF NORTH PERTH POLICY 2.1 Schedule of Charges Services Covered Timing of DC Calculation and Payment Indexing Redevelopment Allowance Exemptions ANTICIPATED DEVELOPMENT IN THE MUNICIPALITY OF NORTH PERTH 3.1 Requirements of the Act Basis of Population, Household and Non-Residential Gross Floor Area Forecast Summary of Growth Forecast THE APPROACH TO CALCULATION OF THE CHARGE 4.1 Introduction Services Potentially Involved Increase in the Need for Service Local Service Policy Capital Forecast Treatment of Credits Eligible Debt and Committed Excess Capacity Existing Reserve Funds Deductions Reduction Required by Level of Service Ceiling Reduction for Uncommitted Excess Capacity Reduction for Benefit to Existing Development Reduction for Anticipated Grants, Subsidies and Other Contributions The 10% Reduction DEVELOPMENT CHARGE ELIGIBLE COST ANALYSIS BY SERVICE 5.1 Introduction Service Levels and 10-Year Capital Costs for DC Calculation Administration Indoor Recreation Services Outdoor Recreation Services Library Services Child Care 5-12 Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

4 CONTENTS Page 5.3 Service Levels and 18-Year Capital Costs for North Perth s DC Calculation Fire Protection Services Police Services Roads and Related Urban Build Out Capital Costs for North Perth s DC Calculation Stormwater Management Wastewater Services Water Services DEVELOPMENT CHARGE CALCULATION DEVELOPMENT CHARGE POLICY RECOMMENDATIONS AND DEVELOPMENT CHARGE BY-LAW RULES 7.1 Introduction Development Charge By-Law Structure Development Chare By-Law Rules Payment in any Particular Case Determination of the Amount of the Charge Application to Redevelopment of Land (Demolition and Conversion) Exemptions (full or partial) Phasing in Timing of Collection Wind Turbines Indexing The Applicable Areas Other Development Charge By-Law Provisions Categories of Services for Reserve Fund and Credit Purposes By-law In-force Date Minimum Interest Rate Paid on Refunds and Charges for Inter-Reserve Fund Borrowing Other Recommendations BY-LAW IMPLEMENTATION 8.1 Public Consultation Process Introduction Public Meeting of Council Other Consultation Activity Anticipated Impact of the Charge on Development Implementation Requirements Introduction Notice of Passage By-law Pamphlet Appeals Complaints Credits Front-Ending Agreements Severance and Subdivision Agreement Conditions 8-5 Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

5 CONTENTS Page APPENDICES A BACKGROUND INFORMATION ON RESIDENTIAL AND NON-RESIDENTIAL GROWTH FORECAST A-1 B LEVEL OF SERVICE B-1 C LONG TERM CAPITAL AND OPERATING COST EXAMINATION C-1 D DEVELOPMENT CHARGE RESERVE FUND POLICY D-1 E LOCAL SERVICE POLICY E-1 F PROPOSED DEVELOPMENT CHARGE BY-LAW F-1 G RESIDENTIAL AND WIND TURBINE DEVELOPMENT CHARGE PHASE IN OPTIONS G-1 H NON-RESIDENTIAL DEVELOPMENT CHARGE PHASE IN OPTIONS H-1 Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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7 EXECUTIVE SUMMARY Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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9 (i) EXECUTIVE SUMMARY 1. The report provided herein represents the Development Charge Background Study for the Municipality of North Perth required by the Development Charges Act (DCA). This report has been prepared in accordance with the methodology required under the DCA. The contents include the following: Chapter 1 Overview of the legislative requirements of the Act; Chapter 2 Review of present DC policies of the Municipality; Chapter 3 Summary of the residential and non-residential growth forecasts for the Municipality; Chapter 4 Approach to calculating the development charge; Chapter 5 Review of historic service standards and identification of future capital requirements to service growth and related deductions and allocations; Chapter 6 Calculation of the development charges; Chapter 7 Development charge policy recommendations and rules; and Chapter 8 By-law implementation. 2. Development charges provide for the recovery of growth-related capital expenditures from new development. The Development Charges Act is the statutory basis to recover these charges. The methodology is detailed in Chapter 4; a simplified summary is provided below: 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: Grants, subsidies and other contributions; Benefit to existing development; Statutory 10% deduction (soft services); Amounts in excess of 10-year historic service calculation; DC reserve funds (where applicable); 5) Net costs are then allocated between residential and non-residential benefit; and 6) Net costs divided by growth to provide the DC charge. 3. The growth forecast (Chapter 3) on which the Municipal-wide development charge is based, projects the following population, housing and non-residential floor area for the 10-year (mid 2014-mid 2023), 18-year (mid 2014-mid 2031) and urban build out periods. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

10 Updated August 15, 2014 (ii) 10 Year 18 Year Urban Build Out Urban Build Out Urban Build Out Measure Stormwater Water Wasteater (Listowel Southeast Drainage Area) (Net) Population Increase 1,383 2,089 4,295 4,418 1,468 Residential Unit Increase ,916 1, Non-Residential Gross Floor Area Increase (ft²) 546, ,900 1,530,200 1,530, ,000 Source: Watson & Associates Economists Ltd. Forecast On August 24, 2009, the Municipality of North Perth passed By-law under the Development Charges Act, The Municipality amended By-law with Bylaw on December 8, 2009 to replace other exemptions in section 3.7 parts (e) and (f) regarding garden suites and farm lots These by-laws impose development charges on residential and non-residential uses for both Municipal-wide and Area specific services. By-law , as amended, will expire on September 1, The Municipality is undertaking a development charge public process and anticipates passing a new by-law in advance of the expiry date. The mandatory public meeting has been set for July 21, 2014 with adoption of the by-law subsequent to the public meeting. 5. The development charges are separated into Municipal-Wide charges along with area specific charges for urban services. The Municipal-wide charges currently in effect are $7,353 for single detached dwelling units. Municipal-wide DC s for non-residential are currently not imposed. The current charges for Listowel Southeast Drainage area are $2,047 for single detached dwelling units and non-residential charges are $1.36 per square foot for commercial, industrial and institutional. The charges for wastewater in Listowel & Atwood are $3,279 for single detached dwelling units and non-residential charges are $1.29 per square foot for commercial/institutional and $0.25 per square foot for industrial. For water services in Listowel, Atwood & Wallace Ward, the current charges are $761 per single detached dwelling unit and #0.32 per square foot of commercial/institutional and $0.06 per sq.ft. for industrial. It is noted that all developments are required to pay the municipal-wide charges and the urban service charges are only imposed on developments within the urban serviced areas/southeast drainage area. 6. This report has undertaken a recalculation of the charge based on future identified needs (presented in Schedule ES-1 for residential and non-residential). Charges have been provided on a Municipal-wide basis for all services except water, wastewater and stormwater. The corresponding calculated single-detached unit charges and the nonresidential charges per square foot of building area are provided in the table below. For Wind Turbines, the calculated rate is $5,929 per unit. Note, these are the full calculated charges and Council is considering phasing in of the charges (see Appendices G and H). Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Addendum No. 2\Report - Addendum2.docx

11 Updated August 22, 2014 (iii) RESIDENTIAL NON-RESIDENTIAL Single and Wind Service (per ft² of Gross Semi-Detached Turbines Floor Area) Dwelling Municipal Wide Services $10,837 $3.19 $5,929 Urban Services Stormwater Management Listowel Southeast Drainage Area $2,102 $ Wastewater Services Treatment (All serviced urban areas) $1,645 $ Trunk Sewers (All serviced urban areas) $944 $ Water Services (All serviced urban areas) $894 $ The Development Charges Act requires a summary be provided of the gross capital costs and the net costs to be recovered over the life of the by-law. This calculation is provided by service and is presented in Table 6-5. A summary of these costs is provided below: Total gross expenditures planned over the next five years $ 67,890,400 Less: Benefit to existing development $ 10,859,650 Post planning period benefit $ 9,041,800 Ineligible re: Level of Service $ - Mandatory 10% deduction for certain services $ 463,130 Grants, subsidies and other contributions $ 8,906,000 Net Costs to be recovered from development charges $ 38,619,820 Hence, $29.7 million (or an annual amount of $5.85 million) will need to be contributed from taxes and rates, or other sources. Of the total, $9.04 million is growth-related but outside of the forecast period. Based on the previous table, the Municipality plans to spend/contribute to shared services $67.89 million over the next five years, of which $38.62 million (57%) is recoverable from development charges. Of this net amount, $27.08 million is recoverable from residential development and $11.54 million from non-residential development. It is noted also that any exemptions or reductions in the charges would reduce this recovery further. 8. Considerations by Council The background study represents the service needs arising from residential and non-residential growth over the forecast periods. The following Municipality-wide services are calculated based on a 18-year forecast: Roads and Related Services; Fire Protection Services; and Police Services. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

12 (iv) The following urban services are calculated based on an urban build out forecast: Stormwater Management; Wastewater Services; and Water Services. All other Municipal-wide services are calculated based on a 10-year forecast. These include Outdoor Recreation Services, Indoor Recreation Services, Library Services, Child Care and Administration. However, Council will consider the findings and recommendations provided in the report and, in conjunction with public input, approve such policies and rates it deems appropriate. These directions will refine the draft DC by-law which is appended in Appendix F. These decisions may include: adopting the charges and policies recommended herein; considering additional exemptions to the by-law; and considering reductions in the charge by class of development (obtained by removing certain services on which the charge is based and/or by a general reduction in the charge). Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

13 Updated August 22, 2014 (v) Service Municipal Wide Services: Single and Semi- Detached Dwelling TABLE ES-1 SCHEDULE OF DEVELOPMENT CHARGES Apartments - 2 Bedrooms + RESIDENTIAL Apartments - Bachelor and 1 Bedroom Multiples Special Care/Special Dwelling Units NON-RESIDENTIAL (per ft² of Gross Floor Area) Wind Turbines Roads and Related 4,354 2,461 1,704 2,811 1, ,354 Fire Protection Services Police Services Outdoor Recreation Services 1, Indoor Recreation Services 2,501 1, , Library Services Administration Child Care Total Municipal Wide Services 10,837 6,126 4,242 6,995 3, ,929 Urban Services Stormwater Management Listowel Southeast Drainage Area 2,102 1, , Wastewater Services Treatment (All serviced urban areas) 1, , Trunk Sewers (All serviced urban areas) Water Services (All serviced urban areas) Watson & Associates Economists Ltd DC Report - Addendum No. 3

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15 1. INTRODUCTION Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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17 INTRODUCTION 1.1 Purpose of this Document This background study has been prepared pursuant to the requirements of the Development Charges Act, 1997 (s.10) and, accordingly, recommends new development charges and policies for the Municipality of North Perth. The Municipality retained Watson & Associates Economists Ltd. (Watson), to undertake the development charges (DC) study process in Watson worked with Municipal staff in preparing the DC analysis and policy recommendations. This development charge background study, containing the proposed development charge bylaw, 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 development charge background study, as summarized in Chapter 4. It also addresses the requirement for rules (contained in Chapter 7) and the proposed by-law to be made available as part of the approval process (included as Appendix E). In addition, the report is designed to set out sufficient background on the legislation (Chapter 4), North Perth s current DC policy (Chapter 2) and the policies underlying the proposed by-law, to make the exercise understandable to those who are involved. Finally, it addresses post-adoption implementation requirements (Chapter 8) 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 development charge is provided herein. 1.2 Summary of the Process The public meeting required under Section 12 of the Development Charges Act, 1997, has been scheduled for July 21, 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 development charges. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

18 Updated August 22, 2014 In accordance with the legislation, the background study and proposed DC by-law will be available for public review on July 4, 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 development charge by-law adoption process. FIGURE 1-1 SCHEDULE OF KEY DEVELOPMENT CHARGE PROCESS DATES FOR THE MUNICIPALITY OF NORTH PERTH 1. Data collection April-June Council Workshop June 26, Public meeting advertisement placed in newspaper(s) June 25, Background study and proposed by-law available to public July 4, Addendum Report No. 1 July 9, Public meeting of Council July 21, Addendum Report No. 2 August 15, Stakeholder Meeting August 19, Addendum Report No. 3 August 22, Council considers adoption of background study and passage of by-law August 25, Newspaper notice given of by-law passage By 20 days after passage 12. Last day for by-law appeal 40 days after passage 13. Municipality makes pamphlet available (where by-law not appealed) By 60 days after in force date Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

19 2. CURRENT MUNICIPALITY OF NORTH PERTH POLICY Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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21 Updated July 9, CURRENT MUNICIPALITY OF NORTH PERTH POLICY 2.1 Schedule of Charges On August 24, 2009, the Municipality of North Perth passed By-law under the Development Charges Act, The by-law imposes development charges for residential and non-residential uses for both municipal-wide and area specific urban services. Further, on December 8, 2009, the Municipality passed By-law amending By-law to refine exemptions in section 3.7 parts (e) and (f) regarding garden suites and farm lots. The table below provides the rates currently in effect. Service Single & Semi Detached TABLE 2-1 MUNICIPALITY OF NORTH PERTH DEVELOPMENT CHARGES AS AT JANUARY 1, 2014 Residential Multiples Apartments with Apartments with >= 2 Bedrooms < 2 Bedrooms Non-Residential (per ft 2 of Gross Floor Area) Commercial Industrial Institutional Municipal Wide Services: Roads and Related 2,076 1,354 1, Fire Protection Services Police Services Outdoor Recreation Services Indoor Recreation Services 2,413 1,574 1, Library Services Administration Child Care Total Municipal Wide Services 7,353 4,794 4,042 2, Urban Services: Stormwater Management Listowel Southeast Drainage Area 2,047 1,502 1, Wastewater Services Treatment (All serviced urban areas) 2,570 1,676 1, Trunk Sewers (All serviced urban areas) Water Services (All serviced urban areas) Services Covered The following services are covered under By-law : Municipal-wide: Roads and Related; Fire Protection Services; Police Services; Outdoor Recreation Services; Indoor Recreation Services; Library Services; Administration; and Child Care. Urban area: Stormwater Management Services (Listowel Southeast Drainage Area); Wastewater Services Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Addendum No. 1\Report - Addendum1.docx

22 2-2 Treatment (All Serviced Urban Areas); Trunk Sewers (Atwood and Listowel and Surrounding Areas); and Water Services (All Serviced Urban Areas) 2.3 Timing of DC Calculation and Payment Development charges are calculated and payable in full on the date that the building permit is issued in relation to a building or structure on land to which a development charge applies. 2.4 Indexing By-law provides for the annual indexing of charges on January 1st of each year, without amendment to the by-law, in accordance with the prescribed index in the Act. 2.5 Redevelopment Allowance As a result of the redevelopment of land, a building or structure existing on the same land within 5 years prior to the date of payment of development charges in regard to such redevelopment was, or is to be demolished, in whole or in part, or converted from one principal use to another principal use on the same land, in order to facilitate the redevelopment, the development charges otherwise payable with respect to such redevelopment shall be reduced by the following amounts: (a) in the case of a residential building or structure, or in the case of a mixed-use building or structure, the residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable development charge under subsection 3.8 by the number, according to type, of dwelling units that have been or will be demolished or converted to another principal use; and (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 3.9, 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. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

23 Exemptions The following non-statutory exemptions are provided under By-law : (a) Lands, buildings or structures used or to be used for a place of worship or for the purposes of a cemetery or burial ground exempt from taxation under the Assessment Act; (b) A public hospital receiving aid under the Public Hospitals Act, R.S.O. 1990, Chap P.40, as amended, or any successor thereof; (c) The development of non-residential farm buildings constructed for bona fide farm uses, which qualify as a farm business, being that which operates with a valid Farm Business Registration Number and is assessed in the Farmland Realty Tax Class; (d) The erection of a temporary building without a foundation defined in the Building Code for a period not exceeding nine consecutive months; (e) 50% of the development charge of a garden suite, in the form of a mobile home; and (f) For farm lots of 30 hectares (74.12 acres) or larger, 50% of one supplementary farm dwelling unit in the form of one non permanent dwelling (e.g. Mobile home) as per sections and of the County of Perth Official Plan. The supplementary farm dwelling unit shall be permitted only where the farm contains a principal farm dwelling. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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25 3. ANTICIPATED DEVELOPMENT IN THE MUNICIPALITY OF NORTH PERTH Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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27 ANTICIPATED DEVELOPMENT IN THE MUNICIPALITY OF NORTH PERTH 3.1 Requirements of the Act Chapter 4 provides the methodology for calculating a development charge as per the Development Charges Act, Figure 4-1 presents this methodology graphically. It is noted in the first box of the schematic that in order to determine the development charge that may be imposed, it is a requirement of Section 5 (1) of the Development Charges Act that the anticipated amount, type and location of development, for which development charges can be imposed, must be estimated. The growth forecast contained in this chapter (with supplemental tables in Appendix A) provides for the anticipated development for which the Municipality of North Perth will be required to provide services, over a 10-year ( ), long-term ( ), and build out time horizon. 3.2 Basis of Population, Household and Non-Residential Gross Floor Area Forecast The DC growth forecast has been derived from the North Perth Master Growth Plan Update, 2012, prepared by IBI Group. In compiling the growth forecast, the following information sources were also consulted to help assess residential and non-residential development potential for the Municipality over the forecast period; including The Municipality of North Perth 2009 Development Charge (DC) study, prepared by Watson & Associates Economists Ltd.; 2011 Census Data; Historical residential and non-residential building permit activity; and Discussions with staff regarding potential residential and non-residential development opportunity for the Municipality. 3.3 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 3-1. The discussion provided herein summarizes the anticipated growth for the Municipality and describes the basis for the Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

28 forecast. The results of the residential growth forecast analysis are summarized in Table 3-1 below, and Schedule 1 in Appendix A. 3-2 As identified in Table 3-1 and Schedule 1, the Municipality s population is anticipated to reach approximately 14,290 by 2024, 14,990 by 2031 and 17,240 by build out, resulting in an increase of 1,380, 2,090 and 4,340 persons, respectively, over the 10-year, long-term, and build out (2014 to 2031) forecast periods. 1 FIGURE 3-1 HOUSEHOLD FORMATION BASED ON POPULATION AND HOUSEHOLD FORECAST MODEL DEMAND SUPPLY Historical Housing Construction Employment Market by Local Municipality, Economic Outlook Local, County and Provincial Forecast of Residential Units Residential Units in the Development Process Intensification Designated Lands Servicing Capacity Occupancy Assumptions Gross Population Increase Decline in Existing Population Net Population Increase 1 The population figures used in the calculation of the 2014 North Perth development charge exclude an estimated net Census undercount. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

29 3-3 TABLE 3-1 MUNICIPALITY OF NORTH PERTH RESIDENTIAL GROWTH FORECAST SUMMARY Housing Units Year Population ¹ Singles & Semi- Detached Multiple Dwellings 2 Apartments 3 Other Total Households Person Per Unit (PPU) Mid ,055 3, , Mid ,254 3, , Mid ,631 3, , Mid ,901 3, , Mid ,285 4, , Mid ,990 4, , Buildout 17,243 5, , Mid Mid Mid Mid Mid Mid Mid Mid , Mid Mid , Buildout 4,342 1, ,916 Source: Watson & Associates Economists Ltd., Derived from the North Perth Master Growth Plan Update, Revised April 22, 2014 prepared by IBI Group. Based on the mid-point between the high and low growth scenario for Population excludes an estimated net Census undercount. 2. Includes townhomes and apartments in duplexes. 3. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. 4. Buildout forecast derived from North Perth Master Growth Plan Update, Revised April 22, 2014, pg. 17 High Growth Scenario. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

30 FIGURE 3-2 ANNUAL HOUSING FORECAST¹ Source: Historical housing activity ( ) based on Statistics Canada building permits, Catalogue XIB 1. Growth Forecast represents calendar year. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx 3-4 Housing Units Years Historical Low Density Medium Density High Density Historical Average

31 Unit Mix (Appendix A Schedules 1 through 7) The unit mix for the Municipality was derived from a review of historical development activity (as per Schedule 7). Based on the above, the long-term ( ) household growth forecast is comprised of a housing unit mix of approximately 80% low density (single detached and semi-detached), 13% medium density (multiples except apartments) and 7% high density (bachelor, 1 bedroom and 2 bedroom apartments). 2. Geographic Location of Residential Development (Appendix A Schedule 2) Schedule 2 summarizes the anticipated amount, type and location of development for the Municipality of North Perth by area. In accordance with forecast demand and available land supply, housing growth has been allocated to the following areas over the 2014 to 2031 forecast period: o Listowel Urban Serviced Area 84% o Atwood Urban Service Area 11% o Wallace Ward ( Water Only) less than 1% o Rural 4% 3. Planning Period Short and longer-term time horizons are required for the DC process. The DCA limits the planning horizon for certain services, such as parks, recreation and libraries, to a 10-year planning horizon. Services such as roads, fire, water and wastewater services utilize a longer planning period. 4. Population in New Units (Appendix A - Schedules 2 through 6) The number of housing units to be constructed in the Municipality of North Perth during the short-term and long-term periods are presented on Figure 3-2. Over the long-term ( ) forecast period, the Municipality is anticipated to average 53 new housing units per year. Population in new units is derived from Schedules 3, 4, 5, and 6, which incorporate historical development activity, anticipated units (see unit mix discussion) and average persons per unit by dwelling type for new units. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

32 3-6 Schedule 8a summarizes the average number of persons per unit (PPU) for the new housing units by age and type of dwelling based on a 2011 custom Census data for the Municipality. Due to data limitations, medium and high density PPU s were derived from the Perth County as outlined in Schedule 8b. The total calculated PPU for all density types has been adjusted to account for the downward PPU trend which has been recently experienced in both new and older units, largely due to the aging of the population. Adjusted 20-year average PPU s by dwelling type are as follows: o Low density: 2.99 o Medium density: 1.93 o High density: Existing Units and Population Change (Appendix A - Schedules 3, 4, 5, and 6) Existing households as of 2014 are based on the 2011 Census households, plus estimated residential units constructed between 2011 and 2013 assuming a 6- month lag between construction and occupancy (see Schedule 3). The decline in average occupancy levels for existing housing units is calculated in Schedules 3 through 6, by aging the existing population over the forecast period. The forecast population decline in existing households over the 2014 to 2031 forecast period is estimated at approximately Employment (Appendix A, Schedules 10a through 12) The employment forecast is largely based on the activity rate method, which is defined as the number of jobs in a municipality divided by the number of residents. Key employment sectors include primary, industrial, commercial/ population-related, institutional, and work at home, which are considered individually below. The Municipality of North Perth s employment base by place of work is outlined in Schedule 10a. The 2011 employment base is comprised of the following sectors: O 445 primary (approx. 7%); O 905 work at home employment (approx. 13%); O 2,305 industrial (approx. 34%); O 2,130 commercial/population related (approx. 31%); and O 1,010 institutional (approx. 15%) employment based on Statistics Canada Place of Work custom employment data. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

33 3-7 The 2011 employment base by usual place of work, including work at home is approximately 6,795. Total employment, including work at home employment for the Municipality is anticipated to reach approximately 7,830 by 2024, 8,260 by 2031, and 9,450 at build out. This represents an employment increase of 800, 1,220, and 2,410, over the 10-year, long-term and build out forecast periods, respectively. Schedule 10b, Appendix A, summarizes the employment forecast, excluding work at home employment which is the basis for the DC employment forecast. The impact on municipal services from work at home employees have already been included in the population forecast. Accordingly, work at home employees have been removed from the DC employment forecast and calculation. Total employment for the Municipality of North Perth (excluding work at home employment) is anticipated to reach approximately 6,790 by 2024, 7,150 by 2031, and 8,170 at build out. This represents an employment increase of 680, 1,040, and 2,060, over the 10-year, long-term and build out forecast periods, respectively. In accordance with forecast demand and available land supply, total employment growth (excluding work at home employment) has been allocated to the following areas over the 2014 to 2031 forecast period (Refer to Schedule 10c): o Listowel Urban Serviced Area 89% o Atwood Urban Service Area 0% o Wallace Ward ( Water Only) 0% o Rural 11% 7. Non-Residential Sq.ft. Estimates (Gross Floor Area (GFA), Appendix A, Schedule 10b) Square footage estimates were calculated in Schedule 10b based on the following employee density assumptions: o 1,250 sq.ft. per employee for industrial; o 550 sq.ft. per employee for commercial/population-related; and o 700 sq.ft. per employee for institutional employment. The Municipality-wide incremental Gross Floor Area (GFA) increase is anticipated to be approximately 546,000 sq.ft. over the 10-year, 832,900 sq.ft. over the long-term, and 1,662,700 sq. ft. over the 2014-buildout forecast periods, respectively. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

34 3-8 In terms of percentage growth, the long-term ( ) incremental GFA forecast by sector is broken down as follows: o industrial (approx. 56%); o commercial/population-related (approx. 28%); and o institutional (approx. 16%). Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

35 4. THE APPROACH TO CALCULATION OF THE CHARGE Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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37 THE APPROACH TO CALCULATION OF THE CHARGE 4.1 Introduction This chapter addresses the requirements of s.s.5(1) of the DCA, 1997 with respect to the establishment of the need for service which underpins the development charge calculation. These requirements are illustrated schematically in Figure Services Potentially Involved Table 4-1 lists the full range of municipal service categories which are provided within the Municipality. A number of these services are defined in s.s.2(4) of the DCA, 1997 as being ineligible for inclusion in development charges. These are shown as ineligible on Table 4-1. Two ineligible costs defined in s.s.5(3) of the DCA 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 which are potentially eligible for inclusion in the Municipality s development charge are indicated with a Yes. 4.3 Increase in the Need for Service The development charge 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, s.s.5(1)3, which requires that Municipal Council indicate that it intends to ensure that such an increase in need will be met, suggests that a project-specific expression of need would be most appropriate. 4.4 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. North Perth s Local Service Policy is provided in Appendix E. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

38 4-2 Figure 4-1 The Process of Calculating a Development Charge under the DCA, 1997 Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

39 4-3 TABLE 4-1 CATEGORIES OF MUNICIPAL SERVICES TO BE ADDRESSED AS PART OF THE CALCULATION CATEGORIES OF MUNICIPAL SERVICES ELIGIBILITY FOR INCLUSION IN THE DC CALCULATION SERVICE COMPONENTS MAXIMUM POTENTIAL DC RECOVERY % 1. Services Related to a Highway Yes Yes No Yes Yes 1.1 Arterial roads 1.2 Collector roads 1.3 Area municipal roads 1.4 Traffic signals 1.5 Sidewalks and streetlights Other Transportation Services n/a n/a n/a No Yes Yes n/a n/a 2.1 Transit vehicles 2.2 Other transit infrastructure 2.3 Municipal parking spaces - indoor 2.4 Municipal parking spaces - outdoor 2.5 Works Yards 2.6 Rolling stock Ferries 2.8 Airport facilities Storm Water 2 Drainage and Control Services No No Yes 3.1 Main channels and drainage trunks 3.2 Channel connections 3.3 Retention/detention ponds Fire Protection Services Yes Yes Yes 4.1 Fire stations 4.2 Fire pumpers, aerials and rescue vehicles 4.3 Small equipment and gear Outdoor Recreation Services (i.e. Parks and Open Space) Ineligible Yes Yes n/a Yes Yes 5.1 Acquisition of land for parks, woodlots and ESAs 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 stock 1 and yards Indoor Recreation Services Yes Yes 6.1 Arenas, indoor pools, fitness facilities, community centres, etc. (including land) 6.2 Recreation vehicles and equipment Library Services Yes Yes 7.1 Public library space (incl. furniture and equipment) 7.2 Library materials Electrical Power Services Ineligible Ineligible Ineligible 8.1 Electrical substations 8.2 Electrical distribution system 8.3 Electrical system rolling stock Provision of Cultural, Entertainment and Tourism Facilities and Convention Centres Ineligible Ineligible 9.1 Cultural space (e.g. art galleries, museums and theatres) 9.2 Tourism facilities and convention centres Waste Water Services Yes Yes 10.1 Treatment plants 10.2 Sewage trunks with 7+ year life time *same percentage as service component to which it pertains computer equipment excluded throughout 2 Included as a local service Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

40 4-4 CATEGORIES OF MUNICIPAL SERVICES ELIGIBILITY FOR INCLUSION IN THE DC CALCULATION SERVICE COMPONENTS MAXIMUM POTENTIAL DC RECOVERY % n/a n/a 10.3 Local systems 10.4 Vehicles and equipment Water Supply Services Yes Yes n/a 11.1 Treatment plants 11.2 Distribution systems 11.3 Local systems Waste Management Services Ineligible Ineligible Ineligible 12.1 Collection, transfer vehicles and equipment 12.2 Landfills and other disposal facilities 12.3 Other waste diversion facilities Police Services Yes No No 13.1 Police detachments 13.2 Police rolling stock Small equipment and gear Homes for the Aged n/a 14.1 Homes for the aged space Child Care Yes Yes 15.1 Child care space 15.2 Child care equipment Health n/a 16.1 Health department space Social Services n/a 17.1 Social service space Ambulance n/a n/a 18.1 Ambulance station space Vehicles Hospital Provision Ineligible 19.1 Hospital capital contributions 20. Provision of Headquarters for the General Administration of Municipalities and Area Municipal Boards Ineligible Ineligible Ineligible 20.1 Office space (all services) 20.2 Office furniture 20.3 Computer equipment Other Services Yes Yes 21.1 Studies in connection with acquiring buildings, rolling stock, materials and equipment, and improving land * and facilities, including the DC background study cost 21.2 Interest on money borrowed to pay for growth-related capital with a 7+ year life time * same percentage as service component to which it pertains Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

41 Capital Forecast Paragraph 7 of s.s.5(1) of the DCA requires that the capital costs necessary to provide the increased services must be estimated. The Act goes on to require two potential cost reductions and the Regulation sets out the way in which such costs are to be presented. These requirements are outlined below. These estimates involve capital costing of the increased services discussed above. This entails costing actual projects or the provision of service units, depending on how each service has been addressed. The capital costs include: a) costs to acquire land or an interest therein (including a leasehold interest); b) costs to improve land; c) costs to acquire, lease, construct or improve buildings and structures; d) costs to acquire, lease or improve facilities, including rolling stock (with a useful life of 7 or more years), furniture and equipment (other than computer equipment), materials acquired for library circulation, reference or information purposes; e) interest on money borrowed to pay for the above-referenced costs; f) costs to undertake studies in connection with the above-referenced matters; and g) costs of the development charge background study. In order for an increase in need for service to be included in the DC calculation, Municipal Council must indicate...that it intends to ensure that such an increase in need will be met (s.s.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 s.3). The capital program contained herein reflects the Municipality s approved and proposed capital budgets and master servicing/needs studies. 4.6 Treatment of Credits Section 8 para. 5 of O.Reg. 82/98 indicates that a development charge background study must set out the estimated value of credits that are being carried forward relating to the service. s.s.17 para. 4 of the same Regulation indicates that...the value of the credit cannot be recovered from future development charges, if the credit pertains to an ineligible service. This implies that a credit for eligible services can be recovered from future development charges. 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 credit obligations to be included in the DC calculations at this time. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

42 Eligible Debt and Committed Excess Capacity Section 66 of the DCA, 1997 states that, for the purposes of developing a development charge by-law, a debt incurred with respect to an eligible service may be included as a capital cost, subject to any limitations or reductions in the Act. Similarly, s.18 of O.Reg. 82/98 indicates that debt with respect to an ineligible service may be included as a capital cost, subject to several restrictions. In order for such costs to be eligible, two conditions must apply. First, they must have funded excess capacity which is able to meet service needs attributable to the anticipated development. Second, the excess capacity must be committed, that is, either before or at the time it was created, Council must have expressed a clear intention that it would be paid for by development charges or other similar charges; for example, this may have been done as part of previous development charge processes. It is noted that outstanding debentures issued to-date on growth related projects and related interest costs have been included in the calculations. 4.8 Existing Reserve Funds Section 35 of the DCA states that: The money in a reserve fund established for a service may be spent only for capital costs determined under paragraphs 2 to 8 of subsection 5(1). There is no explicit requirement under the DCA calculation method set out in s.s.5(1) to net the outstanding reserve fund balance as part of making the DC calculation; however, s.35 does restrict the way in which the funds are used in future. For services which are subject to a per capita based, service level cap, the reserve fund balance should be applied against the development-related costs for which the charge was imposed, once the project is constructed (i.e. the needs of recent growth). This cost component is distinct from the development-related costs for the next 10-year period, which underlie the DC 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 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 which contributed them (rather than to future development, which will generate the need for additional facilities directly proportionate to future growth). Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

43 The Municipality s Development Charge Reserve Fund Balance by service at December 31, 2013 is shown below: 4-7 Total 2013 DC Reserve Service Balance Roads and Related $94, Fire Protection Services ($420,034.23) Police Services ($125,435.23) Outdoor Recreation Services $146, Indoor Recreation Services $1,058, Library Services $100, Administration $2, Child Care $23, Stormwater Management $0.00 Wastewater Facilities $592, Wastewater Services - Atwood & Listowel ($821,983.03) Water Services (Listowel, Atwood & Wallace Ward) $319, Total $970, Deductions The DCA, 1997 potentially requires that five deductions be made to the increase in the need for service. These relate to: the level of service ceiling; uncommitted excess capacity; benefit to existing development; anticipated grants, subsidies and other contributions; and 10% reduction for certain services. The requirements behind each of these reductions are addressed as follows: Reduction Required by Level of Service Ceiling This is designed to ensure that the increase in need included in 4.3 does not include an increase that would result in the level of service (for the additional development increment) exceeding the average level of the service provided in the Municipality over the 10-year period immediately preceding the preparation of the background study O.Reg (s.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 Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

44 providing such units based on replacement costs, engineering standards or recognized performance measurement systems, depending on circumstances. When the quantity and quality factor are multiplied together, they produce a measure of the level of service, which meets the requirements of the Act, i.e. cost per unit. 4-8 The average service level calculation sheets for each service component in the DC calculation are set out in Appendix B Reduction for Uncommitted Excess Capacity Paragraph 5 of s.s.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 (discussed above in 4.6). 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 Reduction for Benefit to Existing Development 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 services cap in 4.4 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 roads which do not have a fixed service area. Where existing development has an adequate service level which will not be tangibly increased by an increase in service, no benefit would appear to be involved. For example, where expanding existing library facilities simply replicates what existing residents are receiving, they receive very limited (or no) benefit as a result. On the other hand, where a clear existing service problem is to be remedied, a deduction should be made accordingly. In the case of services such as recreation facilities, community parks, libraries, etc., the service is typically provided on a Municipal-wide system basis. For example, facilities of the same type may provide different services (i.e. leisure pool vs. competitive pool), different programs (i.e. hockey vs. figure skating) and different time availability for the same service (i.e. leisure skating available on Wednesday in one arena and Thursday in another). As a result, residents will Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

45 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. Further, 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 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 made or anticipated by Council and in accordance with various rules such as the attribution between the share related to new vs. existing development. That is, some grants and contributions may not specifically be applicable to growth, such as the COMRIF Grant program or where Council targets fundraising as a measure to offset impacts on taxes (O.Reg s.6) The 10% Reduction Paragraph 8 of s.s.(1) of the DCA requires that, the capital costs must be reduced by 10 percent. This paragraph does not apply to water supply services, waste water services, storm water drainage and control services, services related to a highway, police and fire protection services. The primary services to which the 10% reduction does apply include services such as parks, recreation, libraries, childcare/social services, the Provincial Offences Act, ambulance, homes for the aged, health and transit. The 10% is to be netted from the capital costs necessary to provide the increased services, once the other deductions have been made, as per the infrastructure costs sheets in Chapter 5. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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47 5. DEVELOPMENT CHARGE ELIGIBLE COST ANALYSIS BY SERVICE Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

48

49 DEVELOPMENT CHARGE ELIGIBLE COST ANALYSIS BY SERVICE 5.1 Introduction This chapter outlines the basis for calculating eligible costs for the development charges to be applied on a uniform basis. In each case, the required calculation process set out in s.5(1) paragraphs 2 to 8 in the DCA, 1997 and described in Chapter 4, was followed in determining DC eligible costs. The nature of the capital projects and timing identified in the Chapter reflects Council s current intention. However, over time, Municipality projects and Council priorities change and accordingly, Council s intentions may alter and different capital projects (and timing) may be required to meet the need for services required by new growth. 5.2 Service Levels and 10-Year Capital Costs for DC Calculation This section evaluates the development-related capital requirements for all of the softer services over a 10-year planning period. Each service component is evaluated on two format sheets: the average historical 10-year level of service calculation (see Appendix B), which caps the DC amounts; and, the infrastructure cost calculation, which determines the potential DC recoverable cost Administration The DCA permits the inclusion of studies undertaken to facilitate the completion of the Municipality s capital works program. The Municipality has made provision for the inclusion of new studies undertaken to facilitate this DC process, as well as other studies which benefit growth (in whole or in part). The listing of studies included in the DC includes the following: Parks and Recreation Master Plan; Library Strategic Plan Study; Child Care Feasibility Study; Development Charge Studies; Development Standards Manual; Transportation Master Plans; Land Use Plans; Fire Master Plan; and Master Growth Plans. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

50 The cost of these studies is $584,000, of which $84,500 is existing benefit and the balance associated with growth over the forecast period. In addition to these studies; a deduction to recognize the surplus in the DC reserve fund balance has been made for $2,258. The net growth-related capital cost, after the mandatory 10% deduction and the application of the existing reserve balance, is $457,592 and has been included in the development charge. 5-2 This cost has been allocated 67% residential and 33% non-residential based on the incremental growth in population to employment for the 10-year forecast period. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

51 5-3 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Administration Studies Prj.No Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (214$) Post Period Benefit Other Deductions Net Capital Cost Benefit to Existing Development Less: Less: Potential DC Recoverable Cost Grants, Subsidies and Other Contributions % 33% 1 Parks and Recreation Master Plan ,000-80,000 20,000 60,000 6,000 54,000 36,218 17,782 2 Library Strategic Plan Study ,000-5,000 2,500 2, ,250 1, Library Feasibility Study ,000-22,000 11,000 11,000 1,100 9,900 6,640 3,260 4 Child Care Feasibility Study ,000-8,000-8, ,200 4,829 2,371 5 Development Charge Study ,000-31,000-31,000 3,100 27,900 18,713 9,187 6 Development Charge Study ,000-31,000-31,000 3,100 27,900 18,713 9,187 7 Development Standards Manual (Update) ,000-22,000-22,000 2,200 19,800 13,280 6,520 8 Transportation Master Plan ,000-54,000 13,500 40,500 40,500 27,164 13,336 9 Transportation Master Plan Update ,000-50,000 12,500 37,500 37,500 25,152 12,348 Subtotal Other (e.g. 10% Statutory Deduction) Total Residential Share Non- Residential Share 10 Land Use Plans (NE and SW ends of Listowel , , ,000 21, , ,386 64, Fire Master Plan ,000-50,000 25,000 25,000 25,000 16,768 8, Master Growth Plan Update ,500-7,500-7, ,750 4,527 2, Master Growth Plan Update ,500-7,500-7, ,750 4,527 2, Reserve Fund Adjustment - - 2,258 (2,258) - (2,258) (1,514) (743) Total 584, ,000 86, ,242 39, , , ,682 Watson & Associates Economists Ltd DC Report.xlsx

52 Indoor Recreation Services With respect to recreation facilities, the Municipality currently provides the service from a number of facilities. These facilities amount to a total of 122,869 sq.ft. of space. The average historic level of service for the previous ten years has been approximately 9.45 sq.ft. of space per capita or an investment of $1,986 per capita. Based on this service standard, the Municipality would be eligible to collect $2,747,094 from DCs for facility space. The Municipality has identified the Steve Kerr Recreation Complex, which is to be built in 3 phases, and an expansion to the Elma Memorial Community Centre as growth-related projects. The gross cost of these projects is $24,162,400 with $8,000,000 as a grant, $13,425,500 attributable to growth in the post 10-year forecast period, and the balance of $10,736,500 attributable to growth within the 10-year forecast period. A deduction for the surplus balance in the DC reserve fund of $1,058,485 has also been made. Therefore, the net balance after the mandatory 10% deduction, of $1,404,365 has been included in the development charge. While indoor recreation service usage is predominately residential-based, there is some use of the facility by non-residential users. To acknowledge this use, the growth-related capital costs have been allocated 95% residential and 5% non-residential. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

53 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service Indoor Recreation Facilities Less: Less: Potential DC Recoverable Cost Non- Residential Share Residential Share Increased Service Needs Attributable to Anticipated Development Total Prj.No % 5% Other (e.g. 10% Statutory Deduction) Subtotal Grants, Subsidies and Other Contributions Benefit to Existing Development Net Capital Cost Other Deductions Post Period Benefit Gross Capital Cost Estimate (2014$) Timing (year) ,000,000 1,425,500 10,574,500-8,000,000 2,574, ,450 2,317,050 2,201, ,853 Steve Kerr Recreation Complex - Phase ,000,000 5,000, Steve Kerr Recreation Complex - Phase 2 - Second Ice Pad 2 3 Steve Kerr Recreation Complex - Phase 3 - Indoor Pool ,000,000 7,000, Elma Memorial Community Centre Expansion , , ,000 16, , ,510 7,290 5 Reserve Fund Adjustment 1,058,485 (1,058,485) - (1,058,485) (1,005,561) (52,924) Total 24,162,000 13,425,500-10,736,500 1,058,485 8,000,000 1,678, ,650 1,404,365 1,334,147 70, Watson & Associates Economists Ltd DC Report.xlsx

54 Updated July 9, Outdoor Recreation Services The Municipality currently has acres of parkland within its jurisdiction, consisting of neighbourhood, district, and naturalized parks. The Municipality has sustained the current level of service over the historic 10-year period ( ), with an average of 9.9 acres of parkland; 2 kilometres of trails, and 4.7 parkland amenities items per 1,000 population. Including parkland, trails, and parkland amenities (e.g. ball diamonds, playground equipment, soccer fields, etc.), the level of service provided is approximately $975 per capita. When applied over the forecast period, this average level of service translates into a DC-eligible amount of $1,348,245. Based on the projected growth over the 10-year forecast period, the Municipality has identified $1.79 million in future growth capital costs for parkland development. Of the total cost, $511,600 benefits growth in the post 10-year period and $202,000 benefits existing development. In addition to deductions to recognize existing benefit and post period benefit, a reduction of $146,498 has been made based on the DC reserve fund balance. The net growth capital cost after the mandatory 10% deduction is $822,262. The Municipality has an inventory of 71 vehicles/equipment for parks and recreation purposes including mowers, trailers, trucks, tractors, ice resurfacers, etc. which are valued at $747,050. This investment equates to $58 per capita or 5.4 vehicles/equipment per 1,000 population. The DC recoverable cost this service standard provides is $80,269 for the 10-year forecast period. Municipal staff has identified $47,800 in costs for vehicles and equipment related to parks and recreation. This results in a net growth related cost, after the 10% mandatory deduction, of $43,020 for inclusion in the DC calculation. As the predominant users of outdoor 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. H:\North Perth\2014 DC Study\Addendum No. 1\Report - Addendum1.docx

55 Updated July 9, INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Parkland Development Prj.No Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2014$) Post Period Benefit Other Deductions Net Capital Cost Benefit to Existing Development Less: Less: Potential DC Recoverable Cost Grants, Subsidies and Other Contributions Attributable to New Development Residential Share % 5% Subtotal Other (e.g. 10% Statutory Deduction) Total Non- Residential Share 1 2 Lunor (Sharma) Subdivsion Park Development Riverview Park Development (North & South) ,000 63, , ,600 10,860 97,740 92,853 4, ,000 81, ,900 55,000 83,900 8,390 75,510 71,735 3,776 3 Playstructures (Junior) (4) , , ,000 10,800 97,200 92,340 4,860 4 Hanna's Haven (Ameribuild) Park Development ,000 63, , ,600 10,860 97,740 92,853 4,887 5 Emerald Green (Activa) Developments ,000 31,700 54,300-54,300 5,430 48,870 46,427 2, Future Park Development (including senior playstrucutre, lit sports field, large gazebo and other park amenities including lighting) Memorial Park Rehabilitation and Upgrades , , , ,000 46, , ,430 20, , , , ,000 14, , ,685 6,615 8 Reserve Fund Adjustment - 146,498 (146,498) - (146,498) (139,173) (7,325) Total 1,790, ,600-1,278, , , , , ,149 41,113 Watson & Associates Economists Ltd DC Report - Addendum No. 1.xlsx

56 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service Parks Vehicles and Equipment Less: Less: Potential DC Recoverable Cost Non- Residential Share Residential Share Subtotal Increased Service Needs Attributable to Anticipated Development Prj.No Total Other (e.g. 10% Statutory Deduction) Grants, Subsidies and Other Contributions Attributable to New Development Benefit to Existing Development Net Capital Cost Other Deductions Post Period Benefit Gross Capital Cost Estimate (2014$) Timing (year) % 5% 1 John Deere Tractor F.M. (Listowel) ,000-20,000-20,000 2,000 18,000 17, Kubota F2560 Mower/Snowblower ,800-27,800-27,800 2,780 25,020 23,769 1,251 Total 47, , ,800 4,780 43,020 40,869 2, Watson & Associates Economists Ltd DC Report.xlsx

57 Library Services The Municipality provides Library facility space totaling 6,122 sq.ft. of floor area. Over the past ten years, the average level of service was 0.49 sq.ft. of space per capita or an investment of $225 per capita. Based on this service standard, the Municipality would be eligible to collect $310,580 from DC s for library facility space. Currently a provision for expansion of facility space has been identified in the amount of $350,000. Also, a reserve fund adjustment of $39,533 has been applied. The net total of this cost, after the 10% mandatory deduction, is $275,467 for inclusion in the development charge calculations. In addition to facility space, North Perth provides for a total of 58,477 library items which translates into a service standard of $109 per capita or 4.71 items per capita. This service standard provides the Municipality with an eligible amount of $150,249 from DC s for additional library collection items. Growth will result in the need for the collection to increase over time, therefore, a provision of $180,000 has been included. In addition to this provision, a deduction has been included to recognize the surplus in the DC reserve fund of $60,869. The net amount, after the mandatory deduction of 10%, is $101,131 and has been included in the development charge calculations. While library usage is predominately residential-based, there is some use of the facility by nonresidential users. To acknowledge this use the growth-related capital costs have been allocated 95% residential and 5% non-residential. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

58 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Library Facilities Less: Less: Potential DC Recoverable Cost Non- Residential Share Residential Share Subtotal Increased Service Needs Attributable to Anticipated Development Prj.No Total Other (e.g. 10% Statutory Deduction) Grants, Subsidies and Other Contributions Attributable to New Development Benefit to Existing Development Net Capital Cost Other Deductions Post Period Benefit Gross Capital Cost Estimate (2014$) Timing (year) % 5% 1 Provision for Facility Expansion , , ,000 35, , ,250 15,750 2 Reserve Fund Adjustment 39,533 (39,533) (39,533) (37,556) (1,977) Total 350, ,000 39, ,467 35, , ,694 13, Watson & Associates Economists Ltd DC Report.xlsx

59 5-11 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service:Library Collection Materials Less: Less: Potential DC Recoverable Cost Prj.No Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2014$) Post Period Benefit Other Deductions Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Residential Share % 5% 1 Additional Collection (Various items) , , ,000 18, , ,900 8,100 2 Reserve Fund Adjustment 60,869 (60,869) - (60,869) (60,869) - Subtotal Other (e.g. 10% Statutory Deduction) Total Non- Residential Share Total 180, ,000 60, ,131 18, ,131 93,031 8,100 Watson & Associates Economists Ltd DC Report.xlsx

60 Child Care The Municipality provides child care out of the North Perth Day Care Centre facility which totals 3,106 sq.ft. of floor area. Over the past ten years, the average level of service was 0.25 sq.ft. of space per capita or an investment of $85 per capita. In addition to facility space, North Perth provides equipment at eight school locations for before and after school Child Care. This translates into 0.4 items per 1,000 population and $3 per capita. Based on these service standards, the Municipality would be eligible to collect $122,008 from DC s. Two projects have been identified, a replacement and expansion to the North Perth Day Care Centre and additional equipment for a third room at the Eastdale School in the amount of $2,091,400. Deductions have been made in the amount of $136,800 to recognize the portion of the expanded facility which will benefit growth in the post 10-year forecast period, $908,000 which represents a benefit to existing development and $906,000 to recognize the contribution from the County. A reserve fund adjustment of $23,074 has also been applied. The net total of these costs, after the 10% mandatory deduction, is $107,426 for inclusion in the development charge calculations. Child Care usage is residential-based and to acknowledge this use, the growth-related capital costs have been allocated 100% residential and 0% non-residential. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

61 5-13 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service:Child Care Facilities Less: Less: Potential DC Recoverable Cost Prj.No 1 Increased Service Needs Attributable to Anticipated Development Residential Share % 0% North Perth Daycare Centre Replacement & Expansion Timing (year) Gross Capital Cost Estimate (2014$) Post Period Benefit Other Deductions Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Non- Residential Share ,086, ,400-1,953, , , ,600 13, , ,640-2 Equipment - Eastdale (3rd room) ,400-5,400-5, ,860 4,860-3 Reserve Fund Adjustment ,074 (23,074) - (23,074) (23,074) - Subtotal Other (e.g. 10% Statutory Deduction) Total Total 2,091, ,400-1,959, , , ,926 14, , ,426 - Watson & Associates Economists Ltd DC Report.xlsx

62 Service Levels and 18-Year Capital Costs for North Perth s DC Calculation This section evaluates the development-related capital requirements for those services with 18- year capital costs Fire Protection Services The Municipality currently operates its fire services from three facilities with 22,720 sq.ft. of space, providing for a per capita average level of service of 1.24 sq.ft. per capita or $223 per capita. This level of service provides the Municipality with a maximum DC-eligible amount for recovery over the forecast period of $466,620. A project for the replacement and expansion of the Monkton facility has been identified. The total capital cost of this project is $1,025,000, of which $517,200 has been attributed to growth in the post-2031 period and $461,300 is allocated to benefit to existing development. In addition to these costs, the deficit in the DC reserve fund of $420,034 has been included. Therefore, the net growth capital cost included in the development charge is $466,534. The Municipality has a current inventory of 10 vehicles. The total DC-eligible amount calculated for fire vehicles over the forecast period is approximately $554,358, based on a standard of $265 per capita. The need for three additional vehicles such as a ½ ton pickup truck and two rescue units have been identified at a growth capital cost of $583,000, of which $90,800 is related to growth in the post 2031 period. The net amount of $492,200 has been included in the development charge. The Fire Service provides $1.23 million of equipment and gear for the use in fire services. The calculated average level of service for the historic 10-year period is $87 per capita, providing for a DC-eligible amount over the forecast period of $182,161 for small equipment and gear. Based on growth-related needs, the Municipality has identified the need for in-vehicle electronics and a provision for additional equipment & gear over the forecast period. The total cost of the gear and equipment is $160,000 and this amount has been included in the development charge calculations. The allocation between residential and non-residential development is 67% / 33% based on development land areas over the forecast period Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

63 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Fire Facilities Less: Potential DC Recoverable Cost Non-Residential Share Total % 33% Residential Share Grants, Subsidies and Other Contributions Attributable to New Benefit to Existing Development Net Capital Cost Other Deductions Post Period Benefit Gross Capital Cost Estimate (2014$) Timing (year) Increased Service Needs Attributable to Anticipated Development Prj.No ,025, , , ,300 46,500 31,064 15,436 Replacement and Expansion of Monkton Facility 1 2 Reserve Fund Adjustment 420, , , , ,429 Total 1,445, , , , , , , Watson & Associates Economists Ltd DC Report.xlsx

64 Updated July 9, INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Fire Vehicles Prj.No 1 Increased Service Needs Attributable to Anticipated Development Less: Potential DC Recoverable Cost Residential Share Non-Residential Share Total % 33% 1/2 Ton 4X4 Standard Cab Pickup Truck Timing (year) Gross Capital Cost Estimate (2014$) Post Period Benefit Other Deductions Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development ,000-43,000-43,000 28,726 14,274 2 Rescue Unit , , , ,374 89,626 3 Rescue Unit ,000 90, , , ,715 59,485 Total 583,000 90, , , , ,385 Watson & Associates Economists Ltd DC Report - Addendum No. 1.xlsx

65 RASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Fire Small Equipment and Gear Less: Potential DC Recoverable Cost Non-Residential Share Residential Share Increased Service Needs Attributable to Anticipated Development Total Prj.No % 33% Grants, Subsidies and Other Contributions Attributable to New Development Benefit to Existing Development Net Capital Cost Other Deductions Post Period Benefit Gross Capital Cost Estimate (2014$) Timing (year) 15,000-15,000-15,000 10,021 4, , 2018 & In-Vehicle Electronics , , ,000 96,868 48,132 Provision for Additional Equipment & Gear 2 Total 160, , , ,888 53, Watson & Associates Economists Ltd DC Report.xlsx

66 Police Services The Municipality provides police services through their North Perth Detachment which has 4,960 sq.ft. of space. This provides for a per capita average level of service of 0.36 sq.ft. per capita or $65 per capita. This level of service provides the Municipality with a maximum DCeligible amount for recovery over the 18-year forecast period of $135,576. With the recent expansion in 2012 of facility space, the DC reserve fund is currently in a deficit of $125,435. This amount has been included in the DC calculations. There is no additional space expansions anticipated over the current forecast period. The residential/non-residential capital cost allocation for police protection services would be based on a 67% / 33% split based on the incremental growth in population to employment, for the forecast period. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

67 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Police Facilities Less: Potential DC Recoverable Cost Non-Residential Share Residential Share Total Grants, Subsidies and Other Contributions Attributable to New Development Benefit to Existing Development Net Capital Cost Other Deductions Post Period Benefit Gross Capital Cost Estimate (2014$) Timing (year) Increased Service Needs Attributable to Anticipated Development Prj.No % 33% 1 Reserve Fund Adjustment 125, , ,435 83,797 41,638 Total 125, , ,435 83,797 41, Watson & Associates Economists Ltd DC Report.xlsx

68 Updated August 15, Roads and Related North Perth owns and maintains 450 km of arterial and collector roads. This provides an average level of investment of $10,205 per capita, resulting in a DC-eligible recovery amount of $21.32 million over the 18-year forecast period. With respect to future needs, the identified roads program was reviewed with staff and totals $22,255,000. The capital projects include various works related to paving of the roads system and expansions. Deductions have been made against the total cost in the amounts of $2,875,000 for post period benefit, and $14,898,450 for costs related to existing development. In addition to these costs a reduction of $94,768 has been made based on the current DC reserve fund balance. Therefore, the net growth related cost attributable to growth in the 18- year forecast is $4,386,782, which has been included in the DC calculations. The Public Works Department has a variety of vehicles and major equipment totalling $3,413,800. The inventory provides for a per capita standard of $258. Over the forecast period, the DC-eligible amount for vehicles and equipment is $538,983. The Municipality has identified the need for a new utility service vehicle, an additional snow plow, and a backhoe. These vehicles cost $475,000 and that amount has been included in the DC calculation. The Municipality currently operates their Public Works service from four facilities. These buildings provide 21,811 sq. ft. of building area, providing for an average level of service of 1.75 sq. ft. per capita or $304 per capita. This level of service provides the Municipality with a maximum DC-eligible amount for recovery over the 18 year forecast period of $634,784. The Municipality has identified the need for additional operations space at a total cost of $560,000 and has been included in the DC calculations. The residential/non-residential capital cost allocation for roads would be based on a 67%/33% split, based on the incremental growth in population to employment for the 18-year forecast period. Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 2\Report - Addendum2.docx

69 Updated August 15, 2014 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Roads Less: Potential DC Recoverable Cost Non-Residential Share Total % 33% Residential Share Grants, Subsidies and Other Contributions Attributable to New Benefit to Existing Development Net Capital Cost Other Deductions Post Period Benefit Gross Capital Cost Estimate (2014$) Increased Service Needs Attributable to Anticipated Development Timing (year) Prj.No ,500,000-6,500,000 5,850, , , ,766 Rural Paving Program - Replacement & Upgrades ,500,000-2,500,000 2,250, , ,013 82,987 Rural Paving Program - Replacement & Upgrades 2 3 Urban Paving Program ,617,000-1,617,000 1,455, , ,024 53,676 4 Urban Paving Program ,850,000-4,850,000 4,365, , , ,995 5 Elizabeth Street W. Sidewalk ,000-18,000-18,000 12,025 5,975 6 Binning St W Road Extension ,515, , , , , ,450 7 Mitchell Rd N Extension , ,000 20, , , , , , , , , ,322 Round-A-Bout at Mitchell Rd. S. & Perth Line Provision for new sidewalks ,000-50,000-50,000 33,403 16, Line 87 Expansion and Shoulder Expansion , , , , , ,572 89, Line 84 Expansion ,037, , , , , , , Road 158 Expansion , , , , , ,216 51, Rd 165 Expansion ,319, , , , , , , Road 157 Expansion , , ,500 92, ,900 92,792 46, Reserve Fund Adjustment 94,768 (94,768) (63,310) (31,458) Total 22,255,000 2,875, ,380,000 14,993, ,386,782 2,930,600 1,456, Watson & Associates Economists Ltd DC Report - Addendum No. 2

70 5-22 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Depots and Domes Prj.No Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2014$) Post Period Benefit Other Deductions Net Capital Cost Benefit to Existing Development Less: Potential DC Recoverable Cost Grants, Subsidies and Other Contributions Attributable to New Development Residential Share Non-Residential Share % 33% 1 Provision for Additional Operations Space , , , , ,891 Total Total 560, , , , ,891 Watson & Associates Economists Ltd DC Report.xlsx

71 5-23 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Roads and Related Vehicles Prj.No Increased Service Needs Attributable to Anticipated Development Timing (year) Gross Capital Cost Estimate (2014$) Post Period Benefit Other Deductions Net Capital Cost Benefit to Existing Development Less: Potential DC Recoverable Cost Grants, Subsidies and Other Contributions Attributable to New Development Residential Share Non-Residential Share % 33% 1 Utility Service Vehicle , , ,000 66,805 33,195 2 Additional Snow Plow , , , ,333 79,667 3 Backhoe # , , ,000 90,187 44,813 Total Total 475, , , , ,675 Watson & Associates Economists Ltd DC Report.xlsx

72 5.4 Urban Build Out Capital Costs for North Perth s DC Calculation 5-24 This section evaluates the development-related capital requirements for those services based on an Urban build out capital costs Stormwater Management In 2004 of Gamsby and Mannerow Limited was retained to assess the stormwater management requirements for the Southeast Drainage Area of Listowel (including the fringe areas). Based on the findings of that assessment, the calculated charges were included in the 2004 DC Bylaw. Subsequent to 2004 the work was undertaken and the Municipality issued debt to finance the project. The outstanding growth related discounted principal of $655,851 and discounted debt interests of $475,476 have been included in this DC Calculation. The allocation between residential growth and non-residential growth in this area is 93%/7% based on the benefitting lands. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

73 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Stormwater Less: Potential DC Recoverable Cost Non-Residential Share Residential Share Total 93% 7% Grants, Subsidies and Other Contributions Attributable to New Development Benefit to Existing Development Net Capital Cost Other Deductions Post Period Benefit Gross Capital Cost Estimate (2014$) Increased Service Needs Attributable to Anticipated Development Timing (year) Prj.No 2014 to Urban Buildout - Southeast Drainage Area , , , ,889 43,962 Listowel South East Drainage Area - Debt Prinicpal (Discounted) , , , ,605 31,871 Listowel South East Drainage Area - Debt Prinicpal (Interest) 2 Total 1,131, ,131, ,131,327 1,055,493 75, Watson & Associates Economists Ltd DC Report.xlsx

74 Updated July 9, Wastewater Services The Municipality s projects anticipated in 2014-Urban Build out period, including both facility & linear sewer projects. The total capital projects for wastewater facilities are valued at a gross capital cost estimate of $9.82 million. Where there are projects that provide existing development capacity, deductions have been allocated for a total of $5,292,500. In addition, a deduction to recognize the current DC reserve balance of $592,630 has been made. This results in a total growth related cost for wastewater facilities of $3,934,870 which has been included in the DC calculation. There are four sewer projects included in the capital program which are fully related to growth. These projects include trunk sewers for Listowel and Binning, Mitchell Rd. N. Extension, and the Hamilton Court sewers in Listowel. The capital costs of these projects are $1,437,000. There is a deficit in the DC reserve fund of $821,983 which has also been included in the DC calculation. Therefore, the total of $2,258,983 has been included in the DC calculation. The allocations between residential and non-residential growth for wastewater facilities are 71% residential and 29% non-residential which has been made based on population vs. employment growth over the urban build out forecast period. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Addendum No. 1\Report - Addendum1.docx

75 Updated July 9, 2014 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Wastewater Facilities Less: Potential DC Recoverable Cost Non-Residential Share Residential Share Increased Service Needs Attributable to Anticipated Development Prj.No Total Grants, Subsidies and Other Contributions Attributable to New Development Benefit to Existing Development Net Capital Cost Other Deductions Post Period Benefit Gross Capital Cost Estimate Timing (year) 2014 to Total Urban Buildout - Wastewater Treatment 71% 29% 1 Hydraulic Capacity , , , , ,201 54,299 2 Plant Outfall Location , , , , ,777 91,223 3 Status of Lagoons (Decommission East Lagoon) ,085,000-1,085,000 1,085, Sludge Management , , , , ,105 93,395 5 Standby Power Supply , , , , ,361 79,639 6 Highway 23 Sewage Pumping Station Upgrade , , , , ,561 43,439 7 Wastewater Conveyance , ,000 77,500 77,500 55,056 22,444 8 Headworks , , , , , ,110 9 Main Power Supply , , , , ,529 56, SCADA System , , , , ,769 49, Tertiary Filtration ,050,000-3,050,000 1,525,000 1,525,000 1,083, , Effluent Disinfection ,040,000-1,040, , , , , Sewage Treatment Plant Growth Strategy (EA) , , , ,601 72, ,000-32,000-32,000 22,733 9,267 Water & Wastewater Master Servicing Plan (north end of Listowel) ,000-38,000-38,000 26,995 11,005 Water & Wastewater Master Servicing Plan (south end of Listowel) Reserve Fund Adjustment - 592,630 (592,630) (421,007) (171,624) Total 9,820, ,820,000 5,885,130-3,934,870 2,795,345 1,139,524 Note: Projects Costing Provided by GMBluePlan 5-27 Watson & Associates Economists Ltd DC Report - Addendum No. 1.xlsx

76 Updated July 9, INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Wastewater - Sewers Less: Potential DC Recoverable Cost Prj.No Increased Service Needs Attributable to Anticipated Development Timing (year) 2014 to Urban Buildout - Wastewater Sewers - Listowel and Surrounding Areas Gross Capital Cost Estimate (2014$) Post Period Benefit Other Deductions Net Capital Cost Benefit to Existing Development Grants, Subsidies and Other Contributions Attributable to New Development Residential Share Non-Residential Share 71% 29% 1 Trunk Sewer (Listowel South) ,000,000-1,000,000-1,000, , ,596 2 Trunk Sewer (Binning St W) , , , ,175 82,825 3 Mitchell Rd N Extension , , ,000 74,592 30,408 4 Hamilton Court Sewers (Listowel) ,000-46,000-46,000 32,679 13,321 5 Reserve Fund Adjustment 1 821, , , , ,043 Total Total 2,258, ,258, ,258,983 1,604, ,193 1 Deficit in current Reserve Fund includes recent works completed in both Listowell and Atwood Watson & Associates Economists Ltd DC Report - Addendum No. 1.xlsx

77 Updated August 22, Water Services For water services, staff has identified ten projects to service growth in the urban areas over the build out forecast period which apply to water treatment, storage and distribution. These projects total $10,251,000 with a post period benefit of $6,250,000 and a benefit to existing development in the amount of $1,522,500. As well, the surplus in the DC reserve fund of $319,750 has been deducted. This results in $2,158,750 for inclusion in the DC calculation. The allocations between residential and non-residential growth for water facilities are 70% residential and 30% non-residential which has been made based on population vs. employment growth over the urban build out forecast period Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

78 Updated August 22, 2014 INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION Municipality of North Perth Service: Water Treatment, Storage and Distribution Less: Potential DC Recoverable Cost Non-Residential Share Residential Share Other Deductions Increased Service Needs Attributable to Anticipated Development Prj.No Total 2014 to Urban Build Out - Water 70% 30% Grants, Subsidies and Other Contributions Attributable to New Development Benefit to Existing Development Net Capital Cost Post Period Benefit Gross Capital Cost Estimate (2014$) Timing (year) ,075,000-1,075, , , , ,799 South End Watermain Looping -Extend Watermain down Line 84 from Highway 23 to Wallace Ave S 1 2 Binning St W Extension , , , ,845 74,155 3 Mitchell Rd S Extension , , ,000 77,502 32,498 4 Wallace Ave N Water Extension ,375,000-2,375, ,000 1,425,000 1,003, , ,000-70,000 35,000 35,000 24,660 10,340 Looping Watermain from Krotz St E to Tremaine Ave St to Rocher Rd 5 6 Additional Well (Well No.7) ,375,000 2,375, Additional Water Tower ,875,000 3,875, Hamilton Cres (Rocher Rd) ,000-50,000-50,000 35,228 14, ,000-32,000-32,000 22,546 9,454 Water & Wastewater Master Servicing Plan (north end of Listowel) ,000-38,000-38,000 26,773 11,227 Water & Wastewater Master Servicing Plan (south end of Listowel) Reserve Fund Adjustment 319,750 (319,750) (225,283) (94,467) Total 10,251,000 6,250,000-4,001,000 1,842,250-2,158,750 1,520, , Watson & Associates Economists Ltd DC Report - Addendum No. 3

79 6. DEVELOPMENT CHARGE CALCULATION Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

80

81 Updated July 9, DEVELOPMENT CHARGE CALCULATION Tables 6-1, 6-2 and 6-3 calculate the proposed development charges to be imposed on anticipated development over the urban build out planning horizon for area-specific services. Table 6-4 calculates the proposed uniform development charge to be imposed on anticipated development in the Municipality over an 18-year planning horizon for hard services and Table 6-5 calculates the proposed uniform development charge to be imposed on anticipated development in the Municipality over a 10-year planning horizon for general services. The calculation for residential development is generated on a per capita basis and is based upon five forms of housing types (single and semi-detached, apartments 2+ bedrooms, apartments bachelor and 1 bedroom, multiples and special care/special dwelling units). The non-residential development charge has been calculated on a per sq.ft. of gross floor area basis for all types of non-residential development (industrial, commercial and institutional). The DC-eligible costs for each service component were developed in Chapter 5 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 DC cost calculations set out in Chapter 5 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 5) to calculate the charge in Tables 6-1 to 6-5. Wind Turbines are deemed to be equivalent to a residential single detached unit as it relates to Roads and Related, Fire Protection Services, Police Services and Administration only. With respect to non-residential development, the total costs in the uniform charge allocated to non-residential development (based on need for service) have been divided by the anticipated development over the planning period to calculate a cost per sq.ft. of gross floor area. Table 6-6 summarizes the total development charge that is applicable and Table 6-7 summarizes the gross capital expenditures and sources of revenue for works to be undertaken during the 5-year life of the by-law. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Addendum No. 1\Report - Addendum1.docx

82 Updated July 9, Stormwater Management TABLE 6-1 Municipality of North Perth DEVELOPMENT CHARGE CALCULATION Urban Services 2014 to Urban Builout - Listowel Southeast Drainage Area 2014 $ DC Eligible Cost 2014 $ DC Eligible Cost SERVICE Residential Non-Residential SDU per ft² $ $ $ $ 1.1 Listowel Southeast Drainage 1,032, ,065 2, ,032, ,065 2, TOTAL $1,032,000 $323,065 $2,102 $1.47 DC ELIGIBLE CAPITAL COST $1,032,000 $323,065 Build out Gross Population / GFA Growth (ft².) 1, ,000 Cost Per Capita / Non-Residential GFA (ft².) $ $1.47 By Residential Unit Type p.p.u Single and Semi-Detached 2.99 $2,102 Apartments 2 Bedroom $1,188 Apartments Bach. & 1 Bdrm 1.17 $823 Other Multiples 1.93 $1,357 Special Care/Special Dwelling 1.00 $ Wastewater Services TABLE 6-2 Municipality of North Perth DEVELOPMENT CHARGE CALCULATION Urban Services 2014 to Total Urban Buildout - Wastewater Treatment 2014 $ DC Eligible Cost 2014 $ DC Eligible Cost SERVICE Residential Non-Residential SDU per ft² $ $ $ $ 2.1 Treatment plants 2,795,345 1,139,524 1, Sewers 1,604, , ,400,135 1,793,717 2, TOTAL $4,400,135 $1,793,717 $2,589 $1.18 DC ELIGIBLE CAPITAL COST $4,400,135 $1,793,717 Build out Gross Population / GFA Growth (ft².) 5,082 1,530,200 Cost Per Capita / Non-Residential GFA (ft².) $ $1.18 By Residential Unit Type p.p.u Single and Semi-Detached 2.99 $2,589 Apartments 2 Bedroom $1,463 Apartments Bach. & 1 Bdrm 1.17 $1,013 Other Multiples 1.93 $1,671 Special Care/Special Dwelling 1.00 $866 Watson & Associates Economists Ltd DC Report - Addendum No. 1.xlsx.xls

83 Updated August 22, Water Services (All serviced urban areas) 2014 $ DC Eligible Cost 2014 $ DC Eligible Cost SERVICE Residential Non-Residential SDU per ft² $ $ $ $ 3.1 Treatment, Storage and Distribution 1,520, , ,520, , TOTAL $1,520,970 $637,780 $894 $0.42 DC ELIGIBLE CAPITAL COST $1,520,970 $637,780 Build out Gross Population / GFA Growth (ft².) 5,088 1,530,200 Cost Per Capita / Non-Residential GFA (ft².) $ $0.42 By Residential Unit Type p.p.u TABLE 6-3 Municipality of North Perth DEVELOPMENT CHARGE CALCULATION Urban Services 2014 to Urban Build Out - Water Single and Semi-Detached 2.99 $894 Apartments 2 Bedroom $505 Apartments Bach. & 1 Bdrm 1.17 $350 Other Multiples 1.93 $577 Special Care/Special Dwelling 1.00 $ Roads and Related 2014 $ DC Eligible Cost 2014 $ DC Eligible Cost SERVICE Residential Non-Residential SDU per ft² $ $ $ $ 4.1 Roads 2,930,600 1,456,181 3, Depots and Domes 374, , PW Rolling Stock 317, , Fire Protection Services 3,622,035 1,799,747 4, Fire facilities 311, , Fire vehicles 328, , Small equipment and gear 106,888 53, Police Services 747, , Police facilities 83,797 41, ,797 41, TOTAL $4,453,205 $2,212,746 $5,354 $2.66 DC ELIGIBLE CAPITAL COST $4,453,205 $2,212, Year Gross Population / GFA Growth (ft².) 2, ,900 Cost Per Capita / Non-Residential GFA (ft².) $1, $2.66 By Residential Unit Type p.p.u TABLE 6-4 Municipality of North Perth DEVELOPMENT CHARGE CALCULATION Municipal-wide Services Single and Semi-Detached 2.99 $5,354 Apartments 2 Bedroom $3,026 Apartments Bach. & 1 Bdrm 1.17 $2,095 Other Multiples 1.93 $3,456 Special Care/Special Dwelling 1.00 $1,791 Watson & Associates Economists Ltd DC Report - Addendum No. 3.xls

84 Updated July 9, Outdoor Recreation Services TABLE 6-5 Municipality of North Perth DEVELOPMENT CHARGE CALCULATION Municipal-wide Services $ DC Eligible Cost 2014 $ DC Eligible Cost SERVICE Residential Non-Residential SDU per ft² $ $ $ $ 7.1 Parkland development, amenities & trails 781,149 41,113 1, Parks vehicles and equipment 40,869 2, ,018 43,264 1, Indoor Recreation Services 8.1 Recreation facilities 1,334,147 70,218 2, ,334,147 70,218 2, Library Services 9.1 Library facilities 261,694 13, Library materials 93,031 8, ,725 21, Administration 10.1 Studies 306, , Child Care 11.1 Child care facilities and equipment 107, , TOTAL $2,925,226 $286,037 $5,483 $0.53 DC ELIGIBLE CAPITAL COST $2,925,226 $286, Year Gross Population / GFA Growth (ft².) 1, ,000 Cost Per Capita / Non-Residential GFA (ft².) $1, $0.53 By Residential Unit Type p.p.u Single and Semi-Detached 2.99 $5,483 Apartments 2 Bedroom $3,099 Apartments Bach. & 1 Bdrm 1.17 $2,146 Other Multiples 1.93 $3,540 Special Care/Special Dwelling 1.00 $1,834 Watson & Associates Economists Ltd DC Report - Addendum No. 1.xlsx.xls

85 Updated August 22, 2014 TABLE 6-6 Municipality of North Perth DEVELOPMENT CHARGE CALCULATION TOTAL ALL SERVICES 2014 $ DC Eligible Cost 2014 $ DC Eligible Cost Residential Non-Residential SDU per ft² Municipal-wide Services: $ $ $ $ 18 Year Services 4,453,205 2,212,746 5, Year Services 2,925, ,037 5, TOTAL 7,378,431 2,498,783 10, Urban Services Buildout: Wastewater: Treatment 2,795,345 1,139,524 1, Trunk Sewers 1,604, , Water Services (All serviced urban areas) 1,520, , Stormwater Management Services: Listowel Southeast Drainage Area 1,032, ,065 2, Watson & Associates Economists Ltd DC Report - Addendum No. 3.xls

86 Updated August 22, Service TOTAL GROSS COST Table 6-7 MUNICIPALITY OF NORTH PERTH 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-DC SOURCE DC RESERVE FUND OTHER DEDUCTIONS BENEFIT TO EXISTING OTHER FUNDING LEGISLATED REDUCTION POST DC PERIOD BENEFIT RESIDENTIAL NON- RESIDENTIAL 1. Stormwater Management 1.1 Listowel Southeast Drainage Wastewater Services 2.1 Treatment plants 4,616,000-2,598, ,433, , Sewers 1,437, ,020, , Water Services (All serviced urban areas) 3.1 Treatment, Storage and Distribution 5,469, , ,875, , , Roads and Related 4.1 Roads 37,558,667-6,045, ,643,500 19,286,218 9,583, Depots and Domes 155, ,919 51, PW Rolling Stock 475, , , Fire Protection Services 5.1 Fire facilities 1,025, , ,200 31,064 15, Fire vehicles 313, , , Small equipment and gear 50, ,588 16, Police Services 6.1 Police facilities Outdoor Recreation Services 7.1 Parkland development, amenities & trails 1,582, ,000-93, , ,689 41, Parks vehicles and equipment 20, ,000-17, Indoor Recreation Services 8.1 Recreation facilities 12,162, ,000, ,650 1,425,500 2,339, , Library Services 9.1 Library facilities 350, , ,250 15, Library materials 90, ,000-76,950 4, Administration 10.1 Studies 495,500-72,000-35, , , Child Care 11.1 Child care facilities and equipment 2,091, , ,000 14, , ,500 - TOTAL EXPENDITURES & REVENUES $67,890,400 $0 $10,859,650 $8,906,000 $463,130 $9,041,800 $27,075,598 $11,544,222 Watson & Associates Economists Ltd DC Report - Addendum No. 3

87 7. DEVELOPMENT CHARGE POLICY RECOMMENDATIONS AND DEVELOPMENT CHARGE BY-LAW RULES Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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89 7. DEVELOPMENT CHARGE POLICY RECOMMENDATIONS AND DEVELOPMENT CHARGE BY-LAW RULES Introduction s.s.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 development charges. s.s.5(6) establishes the following restrictions on the rules: the total of all development charges that would be imposed on anticipated development must not exceed the capital costs determined under 5(1) 2-8 for all services involved; if the rules expressly identify a type of development, they must not provide for it to pay development charges 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 development charge than is allowed, the rules for determining development charges may not provide for any resulting shortfall to be made up via other development. With respect to the rules, Section 6 states that a DC by-law must expressly address the matters referred to above re s.s.5(1) para. 9 and 10, as well as how the rules apply to the redevelopment of land. The rules provided are based on the Municipality s existing policies; however, there are items under consideration at this time and these may be refined prior to adoption of the by-law. 7.2 Development Charge By-law Structure It is recommended that: the Municipality uses a uniform Municipal-wide development charge calculation for all municipal services, except water, wastewater and stormwater which are calculated on an area specific basis in the benefitting urban areas. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

90 Development Charge By-law Rules The following subsections set out the recommended rules governing the calculation, payment and collection of development charges in accordance with Section 6 of the Development Charges Act, It is recommended that the following sections provide the basis for the development charges: Payment in any Particular Case In accordance with the Development Charges Act, 1997, s.2(2), a development charge 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 section 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 50 of the Condominium Act; or g) the issuing of a building permit under the Building Code Act in relation to a building or structure 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 gross floor area 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 Administration, the costs have been based on a population vs. employment growth ratio (67%/33%) for residential and non-residential, respectively) over the 10-year forecast period; Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

91 for Indoor Recreation Services, Outdoor Recreation Services, and Library Services, a 5% non-residential attribution has been made to recognize use by the non-residential sector; for Child Care, 100% is attributed to residential based usage; for Fire Protection Services, Police Services and Roads and Roads Related, a 67% residential/33% non-residential attribution has been made based on a population vs. employment growth ratio over the 18-year forecast period; for Stormwater, the cost have been based on the benefitting lands in the Southeast Drainage area with 93% attributed to residential and 7& attributed to non-residential; for water, 70% residential/30% non-residential attribution has been made based on the population vs. employment growth ratio over the build out forecast period; and for wastewater, 71% residential/29% non-residential attributions are based on urban build out of the benefitting areas Application to Redevelopment of Land (Demolition and Conversion) If a development involves the demolition of and replacement of a building or structure on the same site, 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 development charge in place at the time the development charge is payable; and/or 2) the gross floor area of the building demolished/converted multiplied by the current nonresidential development charge in place at the time the development charge is payable. The demolition credit is allowed only if the land was improved by occupied structures and if the demolition permit related to the site was issued less than five years prior to the issuance of a building permit. The credit can, in no case, exceed the amount of development charges that would otherwise be payable Exemptions and Discounts (full or partial) a) Statutory exemptions industrial building additions of up to and including 50% of the existing gross floor area (defined in O.Reg. 82/98, s.1) of the building; for industrial building additions which exceed 50% of the existing gross floor area, only the portion of Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

92 the addition in excess of 50% is subject to development charges (s.4(3)) of the DCA; buildings or structures owned by and used for the purposes of any municipality, local board or Board of Education (s.3); residential development that results only in the enlargement of an existing dwelling unit, or that results only in the creation of up to two additional dwelling units (based on prescribed limits set out in s.2 of O.Reg. 82/98). b) Non-statutory exemptions: 7-4 Lands, buildings or structures used or to be used for a place of worship or for the purposes of a cemetery or burial ground exempt from taxation under the Assessment Act; A public hospital receiving aid under the Public Hospitals Act, R.S.O. 1990, Chap P.40, as amended, or any successor thereof; and The erection of a temporary building without a foundation defined in the Building Code for a period not exceeding nine consecutive months. c) Discounts: The development of non-residential farm buildings constructed for bona fide farm uses, which qualify as a farm business, being that which operates with a valid Farm Business Registration Number and is assessed in the Farmland Realty Tax Class will only be imposed the development charges related to Fire protection services, Police services and Roads and Related based on the charges as approved by Council Phasing in Two options for residential and two options for non-residential have been provided for phasing in of the charges as per Appendices G and H Timing of Collection A development charge that is applicable under Section 5 of the Development Charges Act shall be calculated and payable; where a permit is required under the Building Code Act in relation to a building or structure, the owner shall pay the development charge prior to the issuance of a permit of prior to the commencement of development or redevelopment as the case may be; and Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

93 Updated July 9, 2014 despite the above, 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 or to be paid in installments as agreed upon Wind Turbines As part of the Development Charge process, staff reviewed the projects included within the development charge background study and the various rules that would ultimately be incorporated into the development charge by-law. In regards to Wind Turbines, the services that are impacted by this type of development include Roads and Related and Fire Protection Services. The impact on these services are similar to a residential single detached unit and therefore, 100% of the Roads and Related, Fire Protection Services, Police Services and Administration are recommended as the charge for future Wind Turbines developed within the Municipality Indexing Indexing of the development charges shall be implemented on a mandatory basis annually on January 1 st, in accordance with the Statistics Canada Quarterly, Construction Price Statistics for the most recent year over year period 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. Stormwater Management will be imposed on the Listowel Southeast Drainage area. Wastewater Services will be imposed on an urban area specific basis. Water Services will be imposed on an urban area specific basis. 7.4 Other Development Charge By-law Provisions It is recommended that: Categories of Services for Reserve Fund and Credit Purposes The Municipality s development charge collections are currently reserved in twelve separate reserve funds: Stormwater Management, Wastewater Services (Treatment and Sewers), Water Services, Roads and Related, Fire Protection Services, Police Services, Outdoor Recreation Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Addendum No. 1\Report - Addendum1.docx

94 that the Municipality continues with these reserve funds. Appendix D outlines the reserve fund policies that the Municipality is required to follow as per the Development Charges Act By-law In-force Date A by-law under the DCA, 1997 comes into force on the day after which the by-law is passed by Council Minimum Interest Rate Paid on Refunds and Charged for Inter-Reserve Fund Borrowing The minimum interest rate is the Bank of Canada rate on the day on which the by-law comes into force (as per s.11 of O.Reg. 82/98). 7.5 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 ; Approve the capital project listing set out in Chapter 5 of the Development Charges Background Study dated July 4, 2014, subject to further annual review during the capital budget process ; Approve the Development Charges Background Study dated July 4, 2014, as amended (if applicable)"; Determine that no further public meeting is required ; and Approve the Development Charge By-law as set out in Appendix F. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

95 8. BY-LAW IMPLEMENTATION Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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97 BY-LAW IMPLEMENTATION 8.1 Public Consultation Process 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 addresses the anticipated impact of the development charge on development from a generic viewpoint Public Meeting of Council Section 12 of the DCA, 1997 indicates that before passing a development charge 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 bylaw. 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 OMB) Other Consultation Activity There are three broad groupings of the public who are generally the most concerned with municipal development charge policy: 1. The first grouping is the residential development community, consisting of land developers and builders, who are typically responsible for generating the majority of the development charge revenues. Others, such as realtors, are directly impacted by development charge policy. They are, therefore, potentially interested in all aspects of the charge, particularly the quantum by unit type, projects to be funded by the DC and Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

98 the timing thereof, and municipal policy with respect to development agreements, DC credits and front-ending requirements The second public grouping embraces the public at large and includes taxpayer coalition groups and others interested in public policy (e.g. in encouraging a higher nonautomobile modal split). 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 development charge policy. Their primary concern is frequently with the quantum of the charge, gross floor area exclusions such as basements, mechanical or indoor parking areas, or exemptions and phase-in or capping provisions in order to moderate the impact. 8.2 Anticipated Impact of the Charge on Development The establishment of sound development charge policy often requires the achievement of an acceptable balance between two competing realities. The first is that high non-residential development charges 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 development charges can ultimately be expected to be recovered via higher housing prices and can impact project feasibility in some cases (e.g. rental apartments). On the other hand, development charges 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. 8.3 Implementation Requirements 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. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

99 These include notices, potential appeals and complaints, credits, front-ending agreements, subdivision agreement conditions and finally the collection of revenues and funding of projects. 8-3 The sections which follow overview the requirements in each case Notice of Passage In accordance with s.13 of the DCA, when a DC 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 or the mailing of the notice). Section 10 of O.Reg. 82/98 further defines the notice requirements which are summarized as follows: notice may be given by publication in a newspaper which is (in the Clerk s opinion) of sufficient circulation to give the public reasonable notice, or by personal service, fax or mail to every owner of land in the area to which the by-law relates; s.s.10(4) lists the persons/organizations who must be given notice; and s.s.10(5) lists the eight items which the notice must cover By-law Pamphlet In addition to the notice information, the Municipality must prepare a pamphlet explaining each development charge by-law in force, setting out: a description of the general purpose of the development charges; 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 development charges relate; and a general 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 OMB, 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. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

100 Appeals Sections of the DCA, 1997 set out the requirements relative to making and processing a DC by-law appeal and OMB Hearing in response to an appeal. Any person or organization may appeal a DC by-law to the OMB 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 carrying out a public consultation process, in order to address the issues which come forward as part of that process, thereby avoiding or reducing the need for an appeal to be made Complaints A person required to pay a development charge, or his agent, may complain to the Municipality Council imposing the charge that: the amount of the charge was incorrectly determined; the credit to be used against the development charge was incorrectly determined; or there was an error in the application of the development charge. Sections of the DCA, 1997 set out the requirements that exist, including the fact that a complaint may not be made later than 90 days after a DC (or any part of it) is payable. A complainant may appeal the decision of Municipality Council to the OMB Credits Sections of the DCA, 1997 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 DC by-law. These credits would be used to reduce the amount of development charges 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 development charge is payable Front-Ending Agreements The Municipality and one or more landowners may enter into a front-ending agreement which provides for the costs of a project which will benefit an area in the Municipality to which the DC Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

101 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. 8-5 Part III of the DCA, 1997 (Sections 44-58) addresses front-ending agreements and removes some of the obstacles to their use which were contained in the DCA, Accordingly, the Municipality assesses whether this mechanism is appropriate for its use, as part of funding projects prior to municipal funds being available Severance and Subdivision Agreement Conditions Section 59 of the DCA, 1997 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 s.51 or s.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. It is also noted that s.s.59(4) of the DCA, 1997 requires that the municipal approval authority for a draft plan of subdivision under s.s.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 development charges 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 Development Charges Act, 1997 it would need to provide to the approval authority, information regarding the applicable municipal development charges 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 which can impose a development charge. 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. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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103 APPENDIX A BACKGROUND INFORMATION ON RESIDENTIAL AND NON-RESIDENTIAL GROWTH FORECAST Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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105 A-1 Year Population ¹ SCHEDULE 1 NORTH PERTH RESIDENTIAL GROWTH FORECAST SUMMARY Singles & Semi- Detached Housing Units Multiple Dwellings 2 Apartments3 Other Total Households Person Per Unit (PPU) Mid ,055 3, , Mid ,254 3, , Mid ,631 3, , Mid ,901 3, , Mid ,285 4, , Mid ,990 4, , Buildout 17,243 5, , Mid Mid Mid Mid Mid Mid Mid Mid , Mid Mid , Buildout 4,342 1, ,916 Source: Watson & Associates Economists Ltd., Derived from the North Perth Master Growth Plan Update, Revised April 22, 2014 prepared by IBI Group. Based on the mid-point between the high and low growth scenario for Population excludes an estimated net Census undercount. 2. Includes townhomes and apartments in duplexes. 3. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. 4. Buildout forecast derived from North Perth Master Growth Plan Update, Revised April 22, 2014, pg. 17 High Growth Scenario. FIGURE A ANNUAL HOUSING FORECAST¹ Housing Units Years Historical Low Density Medium Density High Density Historical Average Source: Historical housing activity ( ) based on Statistics Canada building permits, Catalogue XIB 1. Growth Forecast represents calendar year. Watson & Associates Economists Ltd. 6/26/2014 H:\North Perth\2014 DC Study\Growth\ Growth Model North Perth June 16.xlsm

106 A-2 SCHEDULE 2 NORTH PERTH ESTIMATE OF THE ANTICIPATED AMOUNT, TYPE AND LOCATION OF DEVELOPMENT FOR WHICH DEVELOPMENT CHARGES CAN BE IMPOSED DEVELOPMENT TIMING SINGLES & SEMI- MULTIPLES 1 APARTMENTS 2 TOTAL DETACHED LOCATION RESIDENTIAL UNITS GROSS POPULATION EXISTING UNIT NET IN NEW UNITS POPULATION CHANGE POPULATION INCREASE Listowel Urban Service Area ,363 (138) 1, ,096 (259) 1, Buildout 1, ,733 4,743 (599) 4,144 Atwood Urban Service Area (15) (28) Buildout (65) 274 Total Urban Service Area ,529 (153) 1, ,379 (287) 2, Buildout 1, ,855 5,082 (664) 4,418 Wallace Ward (Water Only) (30) (24) (56) (50) Buildout (129) (123) Rural (30) (56) Buildout (129) 47 North Perth ,595 (212) 1, ,487 (398) 2, Buildout 1, ,916 5,264 (923) 4,342 Source: Watson & Associates Economists Ltd., 2014 Residential distribution based on a combination of historical permit activity, available housing supply and discussions with Municipality staff regarding future development prospects. 1. Includes townhomes and apartments in duplexes. 2. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Watson & Associates Economists Ltd. 7/2/2014 H:\North Perth\2014 DC Study\Growth\ Growth Model North Perth July 2

107 A-3 SCHEDULE 3 NORTH PERTH CURRENT YEAR GROWTH FORECAST MID 2011 TO MID 2014 POPULATION Mid 2011 Population 12,631 Occupants of Units (2) 205 New Housing Units, multiplied by persons per unit (3) 2.58 Mid 2011 to Mid 2014 gross population increase Decline in Housing Units (4) 4,795 Unit Occupancy, multiplied by ppu decline rate (5) Mid 2011 to Mid 2014 total decline in population Population Estimate to Mid ,901 Net Population Increase, Mid 2011 to Mid (1) 2011 population based on StatsCan Census unadjusted for Census Undercount. (2) Estimated residential units constructed, Mid 2011 to the beginning of the growth period, assuming a six month lag between construction and occupancy. (3) Average number of persons per unit (ppu) is assumed to be: Persons % Distribution Weighted Persons Structural Type Per Unit¹ of Estimated Units² Per Unit Average Singles & Semi Detached % 1.98 Multiples (6) % 0.27 Apartments (7) % 0.33 Total 100% 2.58 ¹ Based on 2011 Census custom database ² Based on Building permit/completion acitivty (4) 2011 households taken from StatsCan Census. (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. (6) Includes townhomes and apartments in duplexes. (7) Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Watson & Associates Economists Ltd. 6/25/2014 H:\North Perth\2014 DC Study\Growth\ Growth Model North Perth June 16.xlsm

108 A-4 SCHEDULE 4 NORTH PERTH TEN YEAR GROWTH FORECAST MID 2014 TO MID 2024 POPULATION Mid 2014 Population 12,901 Occupants of Units (2) 580 New Housing Units, multiplied by persons per unit (3) 2.75 Mid 2014 to Mid 2024 gross population increase 1,595 1,595 Decline in Housing Units (4) 5,000 Unit Occupancy, multiplied by ppu decline rate (5) Mid 2014 to Mid 2024 total decline in population Population Estimate to Mid ,285 Net Population Increase, Mid 2014 to Mid ,384 (1) Mid 2014 Population based on: 2011 Population (12,631) + Mid 2011 to Mid 2014 estimated housing units to beginning of forecast period (205 x 2.58 = 529) + (4,795 x = -259) = 12,901 (2) Based upon forecast building permits/completions assuming a lag between construction and occupancy. (3) Average number of persons per unit (ppu) is assumed to be: Persons % Distribution Weighted Persons Structural Type Per Unit¹ of Estimated Units² Per Unit Average Singles & Semi Detached % 2.40 Multiples (6) % 0.25 Apartments (7) % 0.10 one bedroom or less 1.17 two bedrooms or more 1.69 Total 100% 2.75 ¹ Persons per unit based on adjusted Statistics Canada Custom 2011 Census database. ² Forecast unit mix based upon historical trends and housing units in the development process. (4) Mid 2014 households based upon 4,795 (2011 Census) (Mid 2011 to Mid 2014 unit estimate) = 5,000 (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. (6) Includes townhomes and apartments in duplexes. (7) Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Watson & Associates Economists Ltd. 6/25/2014 H:\North Perth\2014 DC Study\Growth\ Growth Model North Perth June 16.xlsm

109 A-5 SCHEDULE 5 NORTH PERTH LONG-TERM GROWTH FORECAST MID 2014 TO MID 2031 POPULATION Mid 2014 Population 12,901 Occupants of Units (2) 905 New Housing Units, multiplied by persons per unit (3) 2.75 Mid 2014 to Mid 2031 gross population increase 2,487 2,487 Decline in Housing Units (4) 5,000 Unit Occupancy, multiplied by ppu decline rate (5) Mid 2014 to Mid 2031 total decline in population Population Estimate to Mid ,990 Net Population Increase, Mid 2014 to Mid ,089 (1) Mid 2014 Population based on: 2011 Population (12,631) + Mid 2011 to Mid 2014 estimated housing units to beginning of forecast period (205 x 2.58 = 529) + (4,795 x = -259) = 12,901 (2) Based upon forecast building permits/completions assuming a lag between construction and occupancy. (3) Average number of persons per unit (ppu) is assumed to be: Persons % Distribution Weighted Persons Structural Type Per Unit¹ of Estimated Units² Per Unit Average Singles & Semi Detached % 2.40 Multiples (6) % 0.25 Apartments (7) % 0.10 one bedroom or less 1.17 two bedrooms or more 1.69 Total 100% 2.75 ¹ Persons per unit based on adjusted Statistics Canada Custom 2011 Census database. ² Forecast unit mix based upon historical trends and housing units in the development process. (4) Mid 2014 households based upon 4,795 (2011 Census) (Mid 2011 to Mid 2014 unit estimate) = 5,000 (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. (6) Includes townhomes and apartments in duplexes. (7) Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Watson & Associates Economists Ltd. 6/25/2014 H:\North Perth\2014 DC Study\Growth\ Growth Model North Perth June 16.xlsm

110 A-6 SCHEDULE 6 NORTH PERTH BUILDOUT GROWTH FORECAST MID 2014 TO BUILDOUT POPULATION Mid 2014 Population 12,901 Occupants of Units (2) 1,916 New Housing Units, multiplied by persons per unit (3) 2.75 Mid 2014 to Buildout gross population increase 5,264 5,264 Decline in Housing Units (4) 5,000 Unit Occupancy, multiplied by ppu. decline rate (5) Mid 2014 to Buildout total decline in population Population Estimate to Buildout 17,243 Net Population Increase, Mid 2014 to Buildout 4,342 (1) Mid 2014 Population based on: 2011 Population (12,631) + Mid 2011 to Mid 2014 estimated housing units to beginning of forecast period (205 x 2.58 = 529) + (4,795 x = -259) = 12,901 (2) Based upon forecast building permits/completions assuming a lag between construction and occupancy. (3) Average number of persons per unit (ppu) is assumed to be: Persons % Distribution Weighted Persons Structural Type Per Unit¹ of Estimated Units² Per Unit Average Singles & Semi Detached % 2.40 Multiples (6) % 0.25 Apartments (7) % 0.10 one bedroom or less 1.17 two bedrooms or more 1.69 Total 100% 2.75 ¹ Persons per unit based on adjusted Statistics Canada Custom 2011 Census database. ² Forecast unit mix based upon historical trends and housing units in the development process. (4) Mid 2014 households based upon 4,795 (2011 Census) (Mid 2011 to Mid 2014 unit estimate) = 5,000 (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions. (6) Includes townhomes and apartments in duplexes. (7) Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Watson & Associates Economists Ltd. 6/25/2014 H:\North Perth\2014 DC Study\Growth\ Growth Model North Perth June 16.xlsm

111 A-7 SCHEDULE 7 NORTH PERTH HISTORICAL RESIDENTIAL BUILDING PERMITS YEARS RESIDENTIAL BUILDING PERMITS Year Singles & Semi Detached Multiples 1 Apartments 2 Total Sub-total Average ( ) % Breakdown 77.4% 8.5% 14.2% 100.0% Sub-total Average ( ) % Breakdown 73.8% 8.4% 17.8% 100.0% Total Average % Breakdown 75.5% 8.4% 16.0% 100.0% Sources: Building Permits - Statistics Canada Publication, XIB 1. Includes townhomes and apartments in duplexes. 2. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Watson & Associates Economists Ltd. 6/19/2014 H:\North Perth\2014 DC Study\Growth\ Growth Model North Perth June 16.xlsm

112 A-8 SCHEDULE 8a NORTH PERTH PERSONS PER UNIT BY AGE AND TYPE OF DWELLING (2011 CENSUS) Age of SINGLES AND SEMI-DETACHED Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total Adjusted PPU¹ 20 Year Average Total The Census PPU has been adjusted to account for the downward PPU trend which has been recently experienced in both new and older units, largely due to the aging of the population 2. Includes townhomes and apartments in duplexes. 3. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Note: Does not include Statistics Canada data classified as 'Other' PPU Not calculated for samples less than or equal to 50 dwelling units, and does not include institutional population Watson & Associates Economists Ltd. 6/26/2014 H:\North Perth\2014 DC Study\Growth\ Growth Model North Perth June 16.xlsm

113 A-9 SCHEDULE 8b PERTH COUNTY PERSONS PER UNIT BY AGE AND TYPE OF DWELLING (2011 CENSUS) Age of SINGLES AND SEMI-DETACHED Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total Adjusted PPU¹ 20 Year Average Total Age of MULTIPLES 2 Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total Adjusted PPU¹ 20 Year Average Total Age of APARTMENTS 3 Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total Adjusted PPU¹ 20 Year Average Total Age of ALL DENSITY TYPES Dwelling < 1 BR 1 BR 2 BR 3/4 BR 5+ BR Total Total The Census PPU has been adjusted to account for the downward PPU trend which has been recently experienced in both new and older units, largely due to the aging of the population 2. Includes townhomes and apartments in duplexes. 3. Includes bachelor, 1 bedroom and 2 bedroom+ apartments. Note: Does not include Statistics Canada data classified as 'Other' PPU Not calculated for samples less than or equal to 50 dwelling units, and does not include institutional population Watson & Associates Economists Ltd. 6/26/2014 H:\North Perth\2014 DC Study\Growth\ Growth Model North Perth June 16.xlsm

114 A-10 SCHEDULE 9 NORTH PERTH PERSONS PER UNIT BY STRUCTURAL TYPE AND AGE OF DWELLING (2011 CENSUS) Persons Per Dwelling Age of Dwelling Singles and Semi-Detached Multiples Apartments Multiple and Apartment PPUs are based on Perth County. Watson & Associates Economists Ltd. 6/26/2014 H:\North Perth\2014 DC Study\Growth\ Growth Model North Perth June 16.xlsm

115 A-11 SCHEDULE 10a NORTH PERTH EMPLOYMENT FORECAST, 2014 TO BUILDOUT Activity Rate Employment Employment Period Population Primary Work at Home Industrial Commercial/ Population Related Institutional Total Primary Work at Home Industrial Commercial/ Population Related Institutional Total Total (Excluding Work at Home) , ,320 2,778 1, ,800 5, , ,115 3,015 2, ,480 6, , ,305 2,130 1,010 6,795 5,890 Mid , ,453 2,203 1,011 7,036 6,112 Mid , ,043 2,686 2,471 1,164 7,834 6,791 Mid , ,109 2,824 2,623 1,208 8,259 7,150 Buildout 17, ,276 3,242 3,052 1,310 9,449 8,173 Incremental Change Mid Mid Mid , Mid Mid , ,223 1,038 Mid Buildout 4, ,413 2,061 Annual Average Mid Mid Mid Mid Mid Mid Buildout Source: Watson & Associates Economists Ltd., Derived from the North Perth Master Growth Plan Update, Revised April 22, Watson & Associates Economists Ltd. 6/26/2014 H:\North Perth\2014 DC Study\Growth\ Growth Model North Perth June 16.xlsm

116 A-12 SCHEDULE 10b NORTH PERTH EMPLOYMENT GROSS FLOOR AREA (GFA) FORECAST, 2014 TO BUILDOUT Employment Gross Floor Area in Square Feet (Estimated)¹ Period Population Primary Industrial Commercial/ Population Related Institutional Total Industrial Commercial/ Population Related Institutional Total , ,778 1, , , ,015 2, , , ,305 2,130 1,010 5,890 2,881,300 1,171, ,000 4,759,800 Mid , ,453 2,203 1,011 6,112 3,065,800 1,211, ,900 4,985,400 Mid , ,686 2,471 1,164 6,791 3,357,500 1,359, ,800 5,531,400 Mid , ,824 2,623 1,208 7,150 3,530,000 1,442, ,600 5,818,300 Buildout 17, ,242 3,052 1,310 8,173 4,052,500 1,678, ,000 6,648,100 Incremental Change Mid ,500 40, ,600 Mid Mid , , , , ,000 Mid Mid , , , , , ,900 Mid Buildout 4, , , , ,100 1,662,700 Annual Average Mid ,500 13, ,200 Mid Mid ,170 14,740 10,690 54,600 Mid Mid ,306 13,588 8,100 48,994 Mid Buildout ,401 12,966 5,807 46,173 Source: Watson & Associates Economists Ltd., Derived from the North Perth Master Growth Plan Update, Revised April 22, Square Foot Per Employee Assumptions Industrial 1,250 Commercial/ Population Related 550 Institutional 700

117 A-13 SCHEDULE 10c ESTIMATE OF THE ANTICIPATED AMOUNT, TYPE AND LOCATION OF NON-RESIDENTIAL DEVELOPMENT FOR WHICH DEVELOPMENT CHARGES CAN BE IMPOSED DEVELOPMENT TIMING INDUSTRIAL COMMERCIAL INSTITUTIONAL TOTAL NON-RES EMPLOYMENT LOCATION GFA S.F. GFA S.F. GFA S.F. GFA S.F. INCREASE 1 Listowel Urban Service Area , , , , , , , , Buildout 888, , ,600 1,530,200 1,801 Atwood Urban Service Area Buildout Total Urban Service Area , , , , , , , , Buildout 888, , ,600 1,530,200 1,801 Wallace Ward (Water Only) Buildout Rural ,200 7,400 5,300 41, ,400 11,600 6,900 64, Buildout 98,700 23,300 10, , North Perth , , , , , , , ,900 1, Buildout 986, , ,100 1,662,700 2,061 Source: Watson & Associates Economists Ltd., Employment Increase does not include No Fixed Place of Work. 2. Square feet per employee assumptions: Industrial 1,250 Commercial 550 Institututional 700

118 A-14 SCHEDULE 11 NORTH PERTH NON-RESIDENTIAL CONSTRUCTION VALUE YEARS (000's 2014 $) YEAR Industrial Commercial Institutional Total New Improve Additions Total New Improve Additions Total New Improve Additions Total New Improve Additions Total , , , ,400 1, ,040 14,522 3, , , ,695 7,035 2,258 1, , ,669 2,167 2,027 10, ,580 1, , ,366 3, ,577 9,842 2,476 1,215 13, ,322 1,506 1,540 15, , , ,372 2,737 1,968 17, , , , ,209 1,706 1,003 9, ,639 1, , , ,649 14,152 3, , ,568 1, ,109 1, , ,581 1, , ,655 1, , ,247 2,219 1, ,911 8,797 2,186 2,224 13, ,422 1,373 3,941 11,736 3,334 4, ,940 6, ,888 16,636 6,182 4,747 27, ,647 1,490 1,019 8, , , ,656 3,931 1,019 11, , ,887 16,851 3,425 4, , ,576 5,925 2,550 26, ,094 1,426 2,150 9,670 1, , ,857 1,808 4,706 7,299 5,064 4,208 16,571 Subtotal 109,830 14,458 15, ,228 15,163 18,528 2,807 36,497 14,318 7,343 4,199 25, ,310 40,329 22, ,584 Percent of Total 78% 10% 11% 100% 42% 51% 8% 100% 55% 28% 16% 100% 69% 20% 11% 100% Average 9,153 1,205 1,328 11,686 1,264 1, ,041 1, ,155 11,609 3,361 1,912 16, Period Total 140,228 36,497 25, , Average 11,686 3,041 2,155 16,882 % Breakdown 69.2% 18.0% 12.8% 100.0% Source: Statistics Canada Publication, XIB Note: Inflated to year-end 2013 (January, 2014) dollars using Reed Construction Cost Index Watson & Associates Economists Ltd. 6/26/2014 H:\North Perth\2014 DC Study\Growth\ Growth Model North Perth June 16.xlsm

119 A-15 SCHEDULE 12 NORTH PERTH EMPLOYMENT TO POPULATION RATIO BY MAJOR EMPLOYMENT SECTOR, 2001 TO 2011 Year Change Comments Employment by industry 1.0 Primary Industry Employment Categories which relate to 1.1 All primary 1,165 1, local land-based resources. Sub-total 1,165 1, Industrial and Other Employment 2.1 Manufacturing 2,020 2,230 1, Categories which relate 2.2 Wholesale trade primarily to industrial land 2.3 Construction supply and demand. 2.4 Transportation, storage, communication and other utility Sub-total 2,880 3,203 2, Population Related Employment 3.1 Retail trade Categories which relate 3.2 Finance, insurance, real estate operator and insurance agent primarily to population 3.3 Business service growth within the 3.4 Accommodation, food and beverage and other service municipality. Sub-total 2,075 2,248 2, Institutional 4.1 Government Service Education service, Health, Social Services Sub-total , Total Employment 6,800 7,480 6, Population 12,055 12,254 12, Employment to Population Ratio Industrial and Other Employment Population Related Employment Institutional Employment Primary Industry Employment Total Source: Statistics Canada Employment by Place of Work Note: employment figures are classified by Standard Industrial Classification (SIC) Code Watson & Associates Economists Ltd. 6/26/2014 H:\North Perth\2014 DC Study\Growth\ Growth Model North Perth June 16.xlsm

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121 APPENDIX B LEVEL OF SERVICE Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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123 APPENDIX B - LEVEL OF SERVICE CEILING MUNICIPALITY OF NORTH PERTH SUMMARY OF SERVICE STANDARDS AS PER DEVELOPMENT CHARGES ACT, 1997 Maximum Ceiling LOS 10 Year Average Service Standard Service Category Sub-Component Quality (per capita) Quantity (per capita) Cost (per capita) Roads $10, km of roadways $284,251 per lane km $21,317,409 Depots and Domes $ ft² of building area $173 per ft² $634,784 Roads and Related Roads and Related Vehicles $ No. of vehicles and equipment $117,277 per vehicle $538,983 Fire Facilities $ ft² of building area $181 per ft² $466,620 Fire Vehicles $ No. of vehicles $379,100 per vehicle $554,358 Fire Protection Services Fire Small Equipment and Gear $ No. of equipment and gear $1,533 per Firefighter $182,161 Police Services Police Facilities $ ft² of building area $182 per ft² $135,576 Parkland Development $ No. of developed parkland acres $47,784 per acre $654,242 Parkland Amenities $ No. of parkland amenities $101,434 per amenity $659,331 Parkland Trails $ Kilometres of Paths and Trails $12,535 per lin m. $34,672 Outdoor Recreation Services Parks Vehicles and Equipment $ No. of vehicles and equipment $10,748 per vehicle $80,269 Indoor Recreation Services Indoor Recreation Facilities $1, ft² of building area $210 per ft² $2,747,094 Library Facilities $ ft² of building area $457 per ft² $310,580 Library Services Library Collection Materials $ No. of library collection items $23 per collection item $150,249 Child Care Facilities $ ft² of building area $341 per ft² $117,652 Child Care Child Care Equipment $ No. of vehicles and equipment $7,875 per vehicle $4,356 B-1 Watson & Associates Economists Ltd DC Report

124 B-2 Municipality of North Perth Service Standard Calculation Sheet Service: Roads Contact : Leanne Marks Unit Measure: km of roadways Quantity Measure Description Value ($/km) Arterial Roads Rural Paved $400,000 Urban $970,000 Collector Roads Urban $862,000 Rural Paved $400,000 Rural Gravel $113,000 Total Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $284,251 Service Standard $10,205 DC Amount (before deductions) 18 Year Forecast Population 2,089 $ per Capita $10,205 Eligible Amount $21,317,409 Watson & Associates Economists Ltd DC Report

125 Municipality of North Perth Service Standard Calculation Sheet Service: Depots and Domes Contact : Leanne Marks Unit Measure: ft² of building area Quantity Measure Value/ft² with land, site works, etc Bld'g Value ($/ft²) Description Elma Yard - Garage & Shed 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 4,900 $185 $218 Wallace Yard 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 $106 $150 Listowel Yard 6,511 6,511 6,511 6,511 6,511 6,511 6,511 6,511 6,511 6,511 $139 $168 Supply Depot $185 $218 MTO Depot McDonald St E $185 $218 Total 21,811 21,811 21,811 21,811 21,811 21,811 21,811 21,811 21,811 21,811 Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $173 Service Standard $304 DC Amount (before deductions) 18 Year Forecast Population 2,089 $ per Capita $304 Eligible Amount $634,784 B-3 Watson & Associates Economists Ltd DC Report

126 B-4 Municipality of North Perth Service Standard Calculation Sheet Service: Roads and Related Vehicles Contact : Leanne Marks Unit Measure: No. of vehicles and equipment Quantity Measure Description Value ($/Vehicle) Road Graders $280,000 Heavy Duty Plow $240,000 Medium Duty Plow $190,000 Light Duty Plow $130,000 Pickup Trucks $30,000 1 Ton Trucks $64,700 Street Sweeper $225,000 Loader Tractors $80,000 Backhoe Loader $135,000 Sidewalk Cleaner $130,000 Mobile Generator $75,500 Line Painter $11,000 Sidewalk Grinder $5,400 Chipper $43,100 Ford Loader Tractor $80,000 Total Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $117,277 Service Standard $258 DC Amount (before deductions) 18 Year Forecast Population 2,089 $ per Capita $258 Eligible Amount $538,983 Watson & Associates Economists Ltd DC Report

127 Municipality of North Perth Service Standard Calculation Sheet Service: Fire Facilities Contact : Sarah Jaimison Unit Measure: ft² of building area Quantity Measure Value/ft² with land, site works, etc Bld'g Value ($/ft²) Description Listowel Station 3,770 3,770 3,770 3,770 3,770 3,770 16,000 16,000 16,000 16,000 $170 $191 Atwood Station 3,120 3,120 3,120 3,120 3,120 3,120 3,120 3,120 3,120 3,120 $148 $167 Elma-Logan Monkton Station 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 $148 $167 Satelite Office at Town Hall $175 $197 Total 10,634 10,634 10,634 10,634 10,634 10,634 22,864 22,720 22,720 22,720 Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $181 Service Standard $223 DC Amount (before deductions) 18 Year Forecast Population 2,089 $ per Capita $223 Eligible Amount $466,620 B-5 Watson & Associates Economists Ltd DC Report

128 B-6 Municipality of North Perth Service Standard Calculation Sheet Service: Fire Vehicles Contact : Sarah Jaimison Unit Measure: No. of vehicles Quantity Measure Description Value ($/Vehicle) Pumper (Unit 12) $443,000 Pumper (Unit 22) $350,000 Pumper (Unit 32) $350,000 Tankers (Units 13 & 33) $220,000 Rescue Unit (unit 25) $169,500 Ariel (Unit 14) $1,185,000 Pumper Tanker (Unit 23) $269,000 1/2 Ton 4X4 Quad Cab Pickup Truck (Unit 10) $41,000 1/2 Ton 4X4 Quad Cab Pickup Truck (Unit 20) $41,000 Total Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $379,100 Service Standard $265 DC Amount (before deductions) 18 Year Forecast Population 2,089 $ per Capita $265 Eligible Amount $554,358 Watson & Associates Economists Ltd DC Report

129 B-7 Municipality of North Perth Service Standard Calculation Sheet Service: Fire Small Equipment and Gear Contact : Sarah Jaimison Unit Measure: No. of equipment and gear Quantity Measure Description Value ($/item) Equiped Firefighters $3,700 Thermal Image Camera $10,800 Air Compressor $23,400 Fill Station $10,000 Portable Generators $3,200 Portable Pumps $4,300 SCBA Packs $5,500 SCBA Cylinders (Composite) $1,000 SCBA Cylinders (Aluminum) $500 Jaws and Cutter $32,300 Hazmat Equipment $10,800 Air Bags $4,900 Saws $2,900 Large Generator $53,900 Defibrillators $8,100 Opticom System $10,000 Gas Detectors $5,200 38mm Nozzle $760 65mm Nozzle $1,300 WYE $670 Adapter $180 Floating Strainer $550 Foam Eductor $650 Gate Valve $440 Hard Suction Hose Support $230 Intake Valve $2,060 Low Level Strainer $280 Flashlight (Unit & Charger) $860 Portable Radios $950 38mm Hose $110 65mm Hose $ mm Hose $660 Total Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $1,533 Service Standard $87 DC Amount (before deductions) 18 Year Forecast Population 2,089 $ per Capita $87 Eligible Amount $182,161 Watson & Associates Economists Ltd DC Report

130 Municipality of North Perth Service Standard Calculation Sheet Service: Police Facilities Unit Measure: ft² of building area Quantity Measure Value/ft² with land, site works, etc Bld'g Value ($/ft²) Description North Perth Detachment 4,313 4,313 4,313 4,313 4,313 4,313 4,313 4,313 4,960 4,960 $162 $182 Total 4,313 4,313 4,313 4,313 4,313 4,313 4,313 4,313 4,960 4,960 Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $182 Service Standard $65 DC Amount (before deductions) 18 Year Forecast Population 2,089 $ per Capita $65 Eligible Amount $135,576 B-8 Watson & Associates Economists Ltd DC Report

131 B-9 Municipality of North Perth Service Standard Calculation Sheet Service: Parkland Development Contact : Steve Hardie Unit Measure: No. of developed parkland acres Quantity Measure Description Value ($/Acre) Neighbourhood Parks $60,000 District Parks $52,000 Naturalized Parks $7,400 Total Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $47,784 Service Standard $473 DC Amount (before deductions) 10 Year Forecast Population 1,383 $ per Capita $473 Eligible Amount $654,242 Watson & Associates Economists Ltd DC Report

132 B-10 Municipality of North Perth Service Standard Calculation Sheet Service: Parkland Amenities Contact : Steve Hardie Unit Measure: No. of parkland amenities Quantity Measure Description Value ($/item) Atwood Lions Outdoor Pool $808,000 Listowel Kinsmen Outdoor Pool $808,000 Listowel Comancheros Wadding Pool $37,000 Playstructures (Senior) $108,000 Playstructures (Junior) $54,000 Soccer Pitches $59,000 Baseball (Lit) $178,000 Softball (Lit) $163,000 Softball (Unlit) $88,000 Tennis Courts (Single) $24,000 Tennis Courts (Double) $92,000 Bocci Courts $7,000 Clock Tower $185,000 Batting Cages $15,000 Planting Beds $163,000 Walkway lighting $104,000 Gazebo (small) $16,000 Bandshell $32,000 Fountains $18,000 Pedestrian Bridge $55,000 Skateboard Park (Lit) $47,000 Trail Bridges $55,000 Trail Amenities (Benches, Signage) $16,000 Elma Logan Storage Shed $39,000 Kinette's Splash Pad $191,500 Parks Storage Shed $50,400 Parks Storage Shed $75,600 Total Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $101,434 Service Standard $477 DC Amount (before deductions) 10 Year Forecast Population 1,383 $ per Capita $477 Eligible Amount $659,331 Watson & Associates Economists Ltd DC Report

133 B-11 Municipality of North Perth Service Standard Calculation Sheet Service: Parkland Trails Contact : Steve Hardie Unit Measure: Kilometres of Paths and Trails Quantity Measure Description Value ($/km) Stone Dust $12,000 Brick Walkway $36,300 Total Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $12,535 Service Standard $25 DC Amount (before deductions) 10 Year Forecast Population 1,383 $ per Capita $25 Eligible Amount $34,672 Watson & Associates Economists Ltd DC Report

134 Municipality of North Perth Service Standard Calculation Sheet Service: Parks Vehicles and Equipment Contact : Steve Hardie Unit Measure: No. of vehicles and equipment Quantity Measure 2014 Value ($/Vehicle) Description Kubota L4310 tractor $26,900 Kubota MX5100 (Listowel) $26,900 M.F. 245 tractor $26,900 Woods Mowers $4,400 Fertilizer Spreader $2,400 Landpride Flex Mower $17,800 Sickle Mower - 3' $2,300 Sickle Mower - 8' $3,400 Gas Trimmers $350 Chainsaw $900 Trailer - 20' tandem $8,800 Dump Trailer $8,900 Trailer - Monkton $6,000 Trailer - Atwood $2,300 Trailer - 8' $2,300 Bannerman Diamond Groomer $6,000 Kubota B6200 tractor $22,200 Kubota 'Front Mount $24,800 Allis Chalmers tractor $22,200 Kubota Loader tractor 2008 (Listowel) $26,900 M.F. 135 tractor $26,600 Kabouta Loader tractor 2006 (Monkton) $26,900 Bannerman Aerator $2,900 Lawn Roller $1,500 8N Ford Tractor $22,200 John Deere Tractor (Atwood) $22,200 John Deere Tractor (Wallace/Trow) $6,700 1 Ton Truck $59, Dodge 1/2 Ton Truck $26, /2 Ton Truck Chev $26, Pontiac Montana Van $26, gal. Watering system $2, Ice Resurfacer $75, Ice Resurfacer $66, Ice Resurfacer $75, Ice Resurfacer $75, Ice Resurfacer $66,600 B-12 Watson & Associates Economists Ltd DC Report

135 Municipality of North Perth Service Standard Calculation Sheet Service: Parks Vehicles and Equipment Contact : Steve Hardie Unit Measure: No. of vehicles and equipment Quantity Measure 2014 Value ($/Vehicle) Description Ice Lazer Level $16,200 Ice Edger - Listowel $3,600 Ice Edger - Monkton $3,600 Ice Edger - Wallace $3,700 Bushhog Mower $3,700 Top Dresser $17,200 Scrapper Blades $500 Auger $3,200 Sweeper $4,900 Ford Loader Tractor $80,000 Antique Allis Chalmers tractor $5, Chev Truck - Beautification $3,200 Floor Scrubber - Listowel $6,500 Floor Scrubber - Wallace $6,500 Floor Scrubber - EMCC $6,500 Floor Scrubber - Elma Logan $6,500 Floor Burnisher - Listowel $2,700 Floor Burnisher - Wallace $2,700 Floor Burnisher - EMCC $2,700 Floor Burnisher - Elma Logan $2,700 Low Speed Buffer - Listowel $1,100 Low Speed Buffer - Wallace $1,100 Low Speed Buffer - EMCC $1,100 Low Speed Buffer - Elma Logan $1,100 Pressure Washer - Listowel $800 Pressure Washer - Wallace $800 Pressure Washer - Elma Logan $800 Wet/Dry Vacuum - Listowel $700 Wet/Dry Vacuum - Wallace $700 Wet/Dry Vacuum - EMCC $700 Wet/Dry Vacuum - Elma Logan $700 Pool Vacuum - Listowel $4,300 Pool Vacuum - Atwood $4, Chev Pick-up $26, Chev Pick-up $26,900 Man Lift (2012) $10,100 Total B-13 Watson & Associates Economists Ltd DC Report

136 B-14 Municipality of North Perth Service Standard Calculation Sheet Service: Parks Vehicles and Equipment Contact : Steve Hardie Unit Measure: No. of vehicles and equipment Quantity Measure Description Value ($/Vehicle) Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $10,748 Service Standard $58 DC Amount (before deductions) 10 Year Forecast Population 1,383 $ per Capita $58 Eligible Amount $80,269 Watson & Associates Economists Ltd DC Report

137 B-15 Municipality of North Perth Service Standard Calculation Sheet Service: Indoor Recreation Facilities Contact : Steve Hardie Unit Measure: ft² of building area Quantity Measure Description Bld'g Value ($/ft²) Value/ft² with land, site works, etc. Listowel Memorial Arena 33,619 33,619 33,619 33,619 33,619 33,619 33,619 33,619 33,619 33,619 $207 $232 Elma Logan Rec. Complex 30,782 30,782 30,782 30,782 30,782 30,782 30,782 34,422 34,422 37,372 $207 $235 Wallace Arena & Community Centre 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 $207 $235 Elma Memorial Community Centre 9,978 9,978 9,978 9,978 9,978 9,978 9,978 9,978 9,978 9,978 $170 $191 Monkton Kinsmen Pavilion 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 $74 $86 Listowel Kin Park Pavilion 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 $74 $86 Wallace Optimist Pavillion 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 $74 $86 Trowbridge Park Pavilion 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 $74 $86 Listowel Memorial Park Pavilion 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 $74 $86 Atwood Lions Pavilion 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 $74 $86 Monkton Lions Pavilion 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 $74 $86 Wallace Community Centre (at old municipal office) 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 $101 $115 Total 116, , , , , , , , , ,869 Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $210 Service Standard $1,986 DC Amount (before deductions) 10 Year Forecast Population 1,383 $ per Capita $1,986 Eligible Amount $2,747,094 Watson & Associates Economists Ltd DC Report

138 Municipality of North Perth Service Standard Calculation Sheet Service: Library Facilities Contact : Rebecca Dechert Sage/Steve Hardie Unit Measure: ft² of building area Quantity Measure Value/ft² with land, site works, etc Bld'g Value ($/ft²) Description Listowel Main Library 3,708 3,708 3,708 3,708 3,708 3,708 3,708 3,708 3,708 3,708 $553 $613 Atwood Branch Library 1,271 1,271 1,271 1,271 1,271 1,271 1,271 1,271 1,271 1,271 $233 $265 Monkton Branch Library 1,143 1,143 1,143 1,143 1,143 1,143 1,143 1,143 1,143 1,143 $137 $163 Total 6,122 6,122 6,122 6,122 6,122 6,122 6,122 6,122 6,122 6,122 Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $457 Service Standard $225 DC Amount (before deductions) 10 Year Forecast Population 1,383 $ per Capita $225 Eligible Amount $310,580 B-16 Watson & Associates Economists Ltd DC Report

139 B-17 Municipality of North Perth Service Standard Calculation Sheet Service: Library Collection Materials Contact : Rebecca Dechert Sage Unit Measure: No. of library collection items Quantity Measure Description Value ($/item) Reference Volumes Held $35 Electronic Resources - Databases $1,776 Electronic Resources - CD ROM Titles $108 Circulating - Volumes Held (English) 45,832 48,745 50,190 59,017 61,089 48,525 48,525 59,414 53,825 51,132 $22 Circulating - Volumes Held (French) $74 Circulating - Volumes Held (Other Languagues) $74 Periodicals - Titles Held $34 CDsMusic $18 TalkingBooks/audiobooks ,056 1,258 1,563 1,563 1,667 1,490 1,552 $48 Video Tapes 1,621 1,865 2,110 2,354 2,598 2,598 1,332 1,332 1,332 1,332 $17 DVDs ,018 1,242 3,462 3,462 3,690 3,300 3,524 $31 ebooks (downloadlibrary consortium) $22 Total 48,983 52,536 54,792 64,289 67,154 57,086 55,804 66,984 60,761 58,477 Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $23 Service Standard $109 DC Amount (before deductions) 10 Year Forecast Population 1,383 $ per Capita $109 Eligible Amount $150,249 Watson & Associates Economists Ltd DC Report

140 Municipality of North Perth Service Standard Calculation Sheet Service: Child Care Facilities Contact : Pat Berfelz Unit Measure: ft² of building area Quantity Measure Value/ft² with land, site works, etc Bld'g Value ($/ft²) Description North Perth Day Care Facility 3,106 3,106 3,106 3,106 3,106 3,106 3,106 3,106 3,106 3,106 $300 $341 Total 3,106 3,106 3,106 3,106 3,106 3,106 3,106 3,106 3,106 3,106 Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $341 Service Standard $85 DC Amount (before deductions) 10 Year Forecast Population 1,383 $ per Capita $85 Eligible Amount $117,652 B-18 Watson & Associates Economists Ltd DC Report

141 Municipality of North Perth Service Standard Calculation Sheet Service: Child Care Equipment Contact : Pat Berfelz Unit Measure: No. of vehicles and equipment Quantity Measure 2014 Value ($/Vehicle) Description Eastdale Public School (B&A program) $5,400 Central Public School (B&A program) $5,400 Elma Public School (B&A program) $5,400 Wallace Public School (B&A program) $5,400 St. Mary's Catholic School (B&A program) $5,400 St. Mary's Catholic School (Best Start Program) $21,600 Central Public School (Best Start Program) $21,600 Total Population 12,098 12,171 12,254 12,399 12,474 12,492 12,542 12,631 12,681 12,799 Per Capita Standard Year Average Quantity Standard Quality Standard $7,875 Service Standard $3 DC Amount (before deductions) 10 Year Forecast Population 1,383 $ per Capita $3 Eligible Amount $4,356 B-19 Watson & Associates Economists Ltd DC Report

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143 APPENDIX C LONG TERM CAPITAL AND OPERATING COST EXAMINATION Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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145 C-1 APPENDIX C - LONG TERM CAPITAL AND OPERATING COST EXAMINATION MUNICIPALITY OF NORTH PERTH ANNUAL CAPITAL AND OPERATING COST IMPACT As a requirement of the Development Charges Act, 1997 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 saving 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 2013 Financial Information Return (FIR). In addition to the operational impacts, over time the initial capital projects will require replacement. This replacement of capital is often referred to as life cycle cost. By definition, life cycle 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 life cycle 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: LIFECYCLE COST FACTORS ASSET AVERAGE USEFUL LIFE FACTOR Water, Wastewater and Stromwater Roads Facilities Public Works Vehicles & Equipment Fire vehicles Small equipment and gear Parkland development, amenities & trails Parks vehicles and equipment Library materials Table C-1 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. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

146 Updated August 15, 2014 SERVICE Table C-1 MUNICIPALITY OF NORTH PERTH OPERATING AND CAPITAL EXPENDITURE IMPACTS FOR FUTURE CAPITAL EXPENDITURES NET GROWTH RELATED EXPENDITURES ANNUAL LIFECYCLE EXPENDITURES ANNUAL OPERATING EXPENDITURES C-2 TOTAL ANNUAL EXPENDITURES 1. Stormwater Management 1.1 Listowel Southeast Drainage 879,589 4,500 17,029 21, Wastewater Services 2.1 Treatment plants 3,934,870 20, , , Sewers 1,437,000 7, , , Water Services (All serviced urban areas) 3.1 Treatment, Storage and Distribution 10,251,000 52, , , Roads and Related 4.1 Roads 4,386, , , , Depots and Domes 560,000 9,300 65,688 74, PW Rolling Stock 475,000 43,400 55,718 99, Fire Protection Services 5.1 Fire facilities 1,025,000 17, , , Fire vehicles 583,000 33,700 61,367 95, Small equipment and gear 160,000 18,600 16,842 35, Police Services 6.1 Police facilities , ,644 7 Outdoor Recreation Services 7.1 Parkland development, amenities & trails 822,262 20,300 32,955 53, Parks vehicles and equipment 43,020 3,900 1,724 5, Indoor Recreation Services 8.1 Recreation facilities 1,404,365 23, , , Library Services 9.1 Library facilities 350,000 5,800 9,959 15, Library materials 180,000 16,400 5,122 21, Administration 10.1 Studies 584, Child Care 11.1 Child care facilities and equipment 107,426 1,800 1,578 3,378 Watson & Associates Economists Ltd DC Report - Addendum No. 2

147 APPENDIX D DEVELOPMENT CHARGE RESERVE FUND POLICY Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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149 D-1 APPENDIX D - DEVELOPMENT CHARGE RESERVE FUND POLICY D.1 Legislative Requirements The DCA, 1997 requires development charge collections (and associated interest) to be placed in separate reserve funds. Sections 33 through 36 of the Act provide the following regarding reserve fund establishment and use: a Municipality shall establish a reserve fund for each service to which the DC by-law relates; s.7(1), however, allows services to be grouped into categories of services for reserve fund (and credit) purposes, although only 100% eligible and 90% eligible services may be combined (minimum of two reserve funds); the Municipality shall pay each development charge 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 s.5(1) 2-8); money may be borrowed from the fund but must be paid back with interest (O.Reg. 82/98, s.11(1) defines this as the 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); and DC reserve funds may not be consolidated with other municipal reserve funds for investment purposes (s.37). Annually, the Treasurer of the Municipality is required to provide Council with a financial statement related to the DC by-law(s) and reserve funds. This statement must also be forwarded to the Minister of Municipal Affairs and Housing within 60 days of the statement being filed with Council. O.Reg. 82/98 prescribes the information that must be included in the Treasurer s statement, as follows: opening balance; closing balance; description of each service and/or service category for which the reserve fund was established; transactions for the year (e.g. collections, draws); list of credits by service or service category (outstanding at beginning of the year, given in the year and outstanding at the end of the year by holder); amounts borrowed, purpose of the borrowing and interest accrued during previous year; Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

150 amount and source of money used by the Municipality to repay municipal obligations to the fund; 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 for each draw, the amount spent on the project from the DC reserve fund and the amount and source of any other monies spent on the project. D-2 Based upon the above, Figure D-1 sets out the format for which annual reporting to Council should be provided. D.2 DC Reserve Fund Application Section 35 of the DCA states that: The money in a reserve fund established for a service may be spent only for capital costs determined under paragraphs 2 to 8 of subsection 5(1). This provision clearly establishes that reserve funds collected for a specific service are only to be used for that service. Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

151 D-3 Appendix D-1 SAMPLE DEVELOPMENT CHARGE RESERVE FUNDS STATEMENT MUNICIPALITY OF NORTH PERTH FOR THE YEAR Municipal Wide Urban Area Reserve Fund Roads and Related Fire Protection Services Police Services Outdoor Recreation Services Indoor Recreation Services Library Services Administration Child Care Stormwater Management (Listowel Southeast Drainage Area) Wastewater Services - Treatment Wastewater Services - Sewers Water Services Balance as of January 1 Plus: Development Charge Collections Accrued Interest Repayment of Monies Borrowed from Fund and Associated Interest SUB-TOTAL Less: Amount Transferred to Capital (or Other) Funds {1} Amounts Refunded Amounts Loaned to Other DC Service Category Credits {2} Monies Borrowed from Fund for Other Municipal Purposes SUB-TOTAL December 31 Closing Balance {1}See Attachment 1 for details {2}See Attachment 2 for details Watson & Associates Economists Ltd DC Report

152 D-4 Attachment 1 SAMPLE DEVELOPMENT CHARGE RESERVE FUND STATEMENT MUNICIPALITY OF NORTH PERTH FOR THE YEAR DISCOUNTED SERVICES RESERVE FUND TRANSFERS Capital Project DC Reserve Fund Draw Operating Fund Draw Other Reserves Fund Draw Debt Total Watson & Associates Economists Ltd DC Report

153 D-5 Attachment 2 DEVELOPMENT CHARGE RESERVE FUND STATEMENT MUNICIPALITY OF NORTH PERTH FOR THE YEAR LISTING OF CREDITS UNDER DCA, 1997, s.38 BY HOLDER Credit Holder Applicable DC Reserve Fund Credit Balance - Beginning of Year Additional Credits Granted During Year Credits Used by Holder During Year Credit Balance - End of Year Watson & Associates Economists Ltd DC Report

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155 APPENDIX E LOCAL SERVICE POLICY Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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157 E-1 APPENDIX C - LOCAL SERVICE POLICY 1. Collector Roads 1.1. Collector roads Internal to development - Direct developer responsibility under s.59 of the DCA (as a local service) 1.2. Roads (collector and arterial) external to development - Include in DC calculation to the extent permitted under s.5(1) of the DCA (dependent on local circumstances) 1.3. Stream crossing and rail crossing road works, excluding underground utilities but including all other works within lands to be dedicated to the Municipality or rail corridors - include in DC calculation to the extent permitted under s.5(1) of the DCA (dependent on local circumstances). 2. Traffic Signals 2.1. Traffic signalization internal to development Direct developer responsibility under s.5(1) of the DCA. 2.2 Traffic signalization external to development Include in DC calculation to the extent permitted under s.5(1) of the DCA. 3. Intersection Improvements 3.1. New roads (collector and arterial) and road (collector and arterial) improvements Include as part of road costing noted in item 1, to limits of ROW Intersections improvements within specific developments and all works necessary to connect to entrances (private and specific subdivision) to the roadway - Direct developer responsibility under s.59 of DCA (as a local service) 3.3. Intersections with County roads and provincial highways (Hwy. 48) Include in DC calculation to the extent that they are Municipal responsibility Intersection improvements on other roads due to development growth increasing traffic Include in DC calculation. 4. Streetlights 4.1. Streetlights on external roads Include in area municipal DC (linked to collector road funding source in item 1) Streetlights within specific developments Direct developer responsibility under s.59 of DCA (as a local service). Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

158 E-2 5. Sidewalks 5.1. Sidewalks on MTO and County roads Include in area municipal DC or, in exceptional circumstances, may be local improvement or direct developer responsibility through local service provisions (s.59 of DCA) Sidewalks on area municipal roads - Linked to collector road funding source in item Other sidewalks external to development (which are a local service within the area to which the plan relates) - Direct developer responsibility as a local service provision (under s.59 of DCA) 6. Bike Routes/Bike Lanes/Bike Paths/Multi-Use Trails/Naturalized Walkways 6.1. Bike routes and bike lanes, within road allowance, external to development Include in DC road costs (County and area municipal), consistent with the service standard provisions of the DCA, s.5(1) Bike paths/multi-use trails/naturalized walkways external to development Include in area municipal DCs consistent with the service standard provisions of the DCA, s.5(1) Bike lanes, within road allowance, internal to development Direct developer responsibility under s.59 of the DCA(as a local service) Bike paths/multi-use trails/naturalized walkways internal to development Direct developer responsibility under s.59 of the DCA(as a local service) Trail Bridges/Underpasses and associated works Include in area municipal DCs consistent with the service standard provisions of the DCA, s.5(1). 7. Noise Abatement Measures 7.1. Internal to Development - Direct developer responsibility though local service provisions (s.59 of DCA) 8. Traffic Control Systems 8.1. Include in DC calculation. 9. Land Acquisition for Road Allowances 9.1. Land Acquisition for arterial roads Dedication under the Planning Act subdivision provisions (s.51) through development lands; in areas with limited or no development, include in County or area municipal DC (to the extent eligible) Land Acquisition for collector roads Dedication under the Planning Act subdivision provision (s.51) through development lands (up to 27 metre right-ofway); in areas with limited or no development, include in area municipal DC (to the extent eligible). Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

159 9.3. Land Acquisition for grade separations (beyond normal dedication requirements) Include in the DC to the extent eligible. 10. Land Acquisition for Easements Easement costs external to subdivisions shall be included in DC calculation. 11. Storm Water Management 12. Water Quality and Quantity Works, direct developer responsibility through local service provisions (s. 59 of DCA) Oversizing of stormwater management works for development external to developments will be subject to best efforts clauses by area municipality Pumping stations and works associated with Zone boundaries to be included within the DC, area municipal and County Watermains external to subdivisions included in the DC Marginal costs of waterworks within the subdivision included in DC above 250 mm nominal diameter Connections to trunk mains and pumping stations to service specific areas, to be direct developer responsibility. 13. Sanitary Sewer Pumping stations shall be included in the DC Sanitary sewers external to subdivisions included in the DC Connections to trunk mains and pumping stations to service specific areas, to be direct developer responsibility Marginal costs of sanitary sewer works within the subdivision, which benefits upstream developers, included in DC above 375mm nominal diameter and depth of 5 meters or greater. E-3 Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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161 APPENDIX F PROPOSED DEVELOPMENT CHARGE BY-LAW Watson & Associates Economists Ltd. H:\North Perth\2014 DC Study\Report.docx

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163 Updated August 22, 2014 F-1 THE MUNICIPALITY OF NORTH PERTH BY-LAW NUMBER BEING A BY-LAW to establish development charges for the Municipality of North Perth and to repeal Development Charge By-law Number WHEREAS the Municipality of North Perth will experience growth through development and re-development; AND WHEREAS development and re-development requires the provision of physical and social services by the Municipality of North Perth; AND WHEREAS Council desires to ensure that the capital cost of meeting growthrelated demands for or burden on municipal services does not place an excessive financial burden on the Municipality of North Perth or its existing taxpayers while at the same time ensuring new taxpayers contribute no more than the net capital cost attributable to providing the current level of municipal services; AND 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 charge background study has been completed in accordance with the Act; AND WHEREAS the Council of The Municipality of North Perth has given notice of and held a public meeting on the 21 st day of July, 2014 in accordance with the Act and the regulations thereto; Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

164 Updated August 22, 2014 NOW THEREFORE THE COUNCIL OF THE MUNICIPALITY OF NORTH PERTH ENACTS AS FOLLOWS: F-2 1. INTERPRETATION 1.1 In this By-law the following items shall have the corresponding meanings: accessory means a use or a detached building or structure that is naturally and normally incidental, subordinate and exclusively devoted to supporting the principle use, building or structure and located on the same lot therewith, but does not include a dwelling unless otherwise specified. Act means the Development Charges Act, as amended, or any successor thereof; apartment unit means any residential unit within a building containing more than four dwelling units where the units are connected by an interior corridor, but does not include a special care/special need dwelling unit; bedroom means a habitable room which can be used as sleeping quarters, but does not include a bathroom, living room, dining room or kitchen; board of education has the same meaning as set out in the Education Act, R.S.O. 1990, Chap. E.2, as amended, or any successor thereof; bona fide farm uses means the proposed development will qualify as a farm business operating with a valid Farm Business Registration Number issued by the Ontario Ministry of Agriculture, Food and Rural Affairs and be assessed in the Farmland Realty Tax Class by the Ontario Property Assessment Corporation; Building Code Act means the Building Code Act, S.O. 1992, as amended, or any successor thereof; Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

165 Updated August 22, 2014 F-3 capital cost means costs incurred or proposed to be incurred by the municipality or a local board thereof directly or by others on behalf of and as authorized by the municipality or local board, (a) to acquire land or an interest in land, including a leasehold interest, (b) to improve land, (c) to acquire, lease, construct or improve buildings and structures, (d) to acquire, construct or improve facilities including, (i) furniture and equipment other than computer equipment, and (ii) material acquired for circulation, reference or information purposes by a library board as defined in the Public Libraries Act, R.S.O. 1990, Chap. P.44, as amended, or any successor thereof; and (iii) rolling stock with an estimated useful life of seven years or more, and (e) to undertake studies in connection with any matter under the Act and any of the matters in clauses (a) to (d) above, including the development charge background study required for the provision of services designated in this By-law within or outside the municipality, including interest on borrowing for those expenditures under clauses (a) to (e) above that are growth-related; commercial means any use of land, structures or buildings for the purposes of buying or selling commodities and services, but does not include industrial or agricultural uses, but does include hotels, motels, motor inns and boarding, lodging and rooming houses; Council means the Council of the municipality; Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

166 Updated August 22, 2014 F-4 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; dwelling unit means any part of a building or structure used, designed or intended to be used as a domestic establishment in which one or more persons may sleep and are provided with culinary and sanitary facilities for their exclusive use; Existing means the number, use and size that existed as of the date this by-law was passed; Existing Industrial Building means a building used for or in connection with: a. manufacturing, producing, processing, storing or distributing something, b. research or development in connection with manufacturing or processing something, c. retail sales by a manufacturer, producer or processor of something 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 they are, (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; farm building means that part of a bona fide farming operation encompassing barns, silos and other ancillary development to an agricultural use, but excluding a residential use; garden suite means a one-unit detached residential structure containing bathroom and kitchen facilities that is ancillary to an existing residential structure and that is designed to be portable; Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

167 Updated August 22, 2014 F-5 gross floor area means: (a) in the case of a residential building or structure, the total area of all floors above grade of a dwelling unit measured between the outside surfaces of exterior walls or between the outside surfaces of exterior walls and the centre line of party walls dividing the dwelling unit from any other dwelling unit or other portion of a building; and (b) in the case of a non-residential building or structure, or in the case of a mixeduse 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 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; Institutional means land, buildings, structures or any part thereof used by any organization, group or association for promotion of charitable, educational or benevolent objectives and not for profit or gain; Local Board means a school board, public utility, commission, transportation commission, public library board, board of park management, local board of health, board of commissioners of police, planning board, or any other board, commission, committee, body or local authority established or exercising any power or authority under Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

168 Updated August 22, 2014 any general or special Act with respect to any of the affairs or purposes, including school purposes, of the Municipality of North Perth or any part or parts thereof; F-6 local services means those services, facilities or things which are under the jurisdiction of the municipality and are related to a plan of subdivision or within the area to which the plan relates in respect of the lands under Sections 41, 51 or 53 of the Planning Act, R.S.O. 1990, Chap. P.13, as amended, or any successor thereof; mobile home means a prefabricated dwelling unit designed and intended to be transported or portable for movement from site to site, and includes enclosed additions thereto not exceeding 9.2 sq. metres (100 sq. feet); multiple dwelling means all dwellings other than single-detached, semi-detached, apartment unit dwellings and special care/special dwelling units; municipality means The Municipality of North Perth; 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; nursing home means a residential building or the residential portion of a mixed-use building licensed as a nursing home by the Province of Ontario; Official Plan means the Official Plan adopted for the Municipality, as amended and approved; Owner means the owner of land or a person who has made application for an approval for the development of land upon which a development charge is imposed place of worship means that part of a building or structure that is exempt from taxation as a place of worship under the Assessment Act, R.S.O. 1990, Chap. A.31, as amended, or any successor thereof; Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

169 Updated August 22, 2014 Rate means the interest rate established weekly by the Bank of Canada based on Treasury Bills having a term of 91 days; F-7 regulation means any regulation made pursuant to the Act; Residential Dwelling means a building, occupied or capable of being occupied as a home, residence or sleeping place by one or more persons, containing one or more Dwelling Units but not including motels, hotels, tents, truck campers, tourist trailers, mobile camper trailers or boarding, lodging or rooming houses; residential use means the use of a building or structure or portion thereof for one or more Dwelling Units. This also includes a Dwelling Unit on land that is used for an Agricultural Use; retirement home or lodge means a residential building or the residential portion of a mixed-use building which provides accommodation primarily for retired persons or couples where each private bedroom or living accommodation has a separate private bathroom and separate entrance from a common hall but where common facilities for the preparation and consumption of food are provided, and common lounges, recreation rooms and medical care facilities may also be provided; row dwelling means a building containing three or more attached dwelling units in a single row, each of which dwelling units has an independent entrance from the outside and is vertically separated from any abutting dwelling unit; special care/special need dwelling means: a) a building containing two or more dwelling units, which units have a common entrance from street level: (i) where the occupants have the right to use in common, halls, stairs, yards, common rooms and accessory buildings; (ii) which may or may not have exclusive sanitary and/or culinary facilities; Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

170 Updated August 22, 2014 F-8 (iii) that is designed to accommodate persons with specific needs, including, but not limited to, independent permanent living arrangements; and (iv) where support services such as meal preparation, grocery shopping, laundry, housekeeping, nursing, respite care and attendant services are provided at various levels; and includes, but is not limited to, retirement homes or lodges, nursing homes, and hospices; semi-detached dwelling means a building divided vertically into two dwelling units each of which has a separate entrance and access to grade; service means a service designed in Schedule A to this By-law, and services shall have a corresponding meaning; servicing agreement means an agreement between a landowner and the municipality relative to the provision of municipal services to specified land within the municipality; single detached dwelling unit means a residential building consisting of one dwelling unit and not attached to another structure and includes supplementary farm dwelling units, mobile homes and garden suites; supplementary farm dwelling unit means an additional farm residence in the form of a non-permanent dwelling unit that can be easily removed once the need for the additional farm residence has been fulfilled. This type of unit accommodates the farm family, farm retirees, or farm labourers working on the farm operation; Wind Turbine means any wind energy system, comprising one or more turbines, that converts energy into electricity, with a combined nameplate generating capacity greater than 500 kilowatts and a height greater than 100 metres, that converts energy into electricity, and consists of a wind turbine, a tower, and associated control or conversion electronics. A wind turbine and energy system may be connected to the electricity grid Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

171 Updated August 22, 2014 in circuits at a substation to provide electricity off-site for sale to an electrical utility or other intermediary; and F-9 Zoning By-Law means the Zoning By-Law of the Municipality of North Perth, or any successor thereof passed pursuant to Section 34 of the Planning Act, S.O DESIGNATION OF SERVICES 2.1 The categories of services for which development charges are imposed under this Bylaw are as follows: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Roads and Related; Fire Protection Services; Police Services; Outdoor Recreation Services; Indoor Recreation Services; Library Services; Child Care; Administration; Wastewater Services; Water Services; and Stormwater Management. 2.2 The components of the 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). Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

172 Updated August 22, 2014 F-10 Area to Which By-law Applies 3.2 Subject to section 3.3, this By-law applies to all lands in the Municipality of North Perth whether or not the land or use thereof is exempt from taxation under s. 13 or the Assessment Act 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 or a local board thereof; (b) a board of education; or (c) the Corporation of the County of Perth or a local board thereof. Approvals for Development 3.4 (a) Development charges shall be imposed on all lands, buildings or structures that are developed for residential or non-residential uses if the development requires: (i) (ii) (iii) (iv) (v) (vi) (vii) the passing of a zoning by-law or of an amendment to a zoning by-law under section 34 of the Planning Act; the approval of a minor variance under section 45 of the Planning Act; a conveyance of land to which a by-law passed under subsection 50(7) of the Planning Act applies; the approval of a plan of subdivision under section 51 of the Planning Act; a consent under section 53 of the Planning Act; the approval of a description under section 9 of the Condominium Act, R.S.O. 1998, Chap. C.19, as amended, or any successor thereof; or 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. Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

173 Updated August 22, 2014 F-11 (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 WITH RESPECT TO EXEMPTIONS FOR INTENSIFICATION OF EXISTING HOUSING 3.5 (a) Notwithstanding Section 3.1 to 3.4 above, no development charge shall be imposed with respect to developments or portions of developments as follows: (i) the enlargement of an existing residential dwelling unit; (ii) the creation of one or two additional residential dwelling units in an existing single detached dwelling where the total gross floor area of the additional unit(s) does not exceed the gross floor area of the existing dwelling unit; (iii) the creation of one additional dwelling unit in any other existing residential building provided the gross floor area of the additional unit does not exceed the smallest existing dwelling unit already in the building. (b) Notwithstanding subsection 3.5(a)(ii), development charges shall be calculated and collected in accordance with Schedule B where the total residential gross floor area of the additional one or two dwelling units is greater than the total gross floor area of the existing single detached dwelling unit. (c) Notwithstanding subsection 3.5(a)(iii), development charges shall be calculated and collected in accordance with Schedule B where the additional dwelling unit has a residential gross floor area greater than, (i) in the case of semi-detached house or multiple dwelling, the gross floor area of the existing dwelling unit, and Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

174 Updated August 22, 2014 F-12 (ii) in the case of any other residential building, the residential gross floor area of the smallest existing dwelling unit. RULES WITH RESPECT TO AN INDUSTRIAL EXPANSION EXEMPTION 3.6 (a) Notwithstanding Section 3.1 to 3.4, if a development includes the enlargement of the gross floor area of an existing industrial building, the amount of the development charge that is payable in respect of the enlargement is determined in accordance with the following: (i) Subject to subsection 3.6(a)(iii), if the gross floor area is enlarged by 50 percent or less of the lesser of: (1) the gross floor area of the existing industrial building, or (2) the gross floor area of the existing industrial building before the first enlargement for which: (A) an exemption from the payment of development charges was granted; or (B) a lesser development charge than would otherwise be payable under this By-law, or predecessor thereof, was paid, the amount of the development charge in respect of the enlargement is zero; (ii) Subject to subsection 3.6(a)(iii), if the gross floor area is enlarged by more than 50 per cent of the lesser of: (1) the gross floor area of the existing industrial building, or (2) the gross floor area of the existing industrial building before the first enlargement for which: (A) an exemption from the payment of development charges was granted, or Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

175 Updated August 22, 2014 F-13 (B) a lesser development charge than would otherwise be payable under this By-law, or predecessor thereof, was paid, pursuant to Section 4 of the Act and this subsection, the amount of the development charge in respect of the enlargement is the amount of the development charge that would otherwise be payable multiplied by the fraction determined as follows: (3) determine the amount by which the enlargement exceeds 50 per cent of the gross floor area before the first enlargement, and (4) divide the amount determined under subsection (a) by the amount of the enlargement. (iii) For the purposes of calculating the extent to which the gross floor area of an existing industrial building is enlarged in subsections 3.6(a)(i) and 3.6(a)(ii), the cumulative gross floor area of any previous enlargements for which: (1) an exemption from the payment of development charges was granted, or (2) a lesser development charge than would otherwise be payable under this By-law, or predecessor thereof, was paid, shall be added to the calculation of the gross floor area of the proposed enlargement (iv) For the purposes of this subsection (a), the enlargement must not be attached to the existing industrial building by means only of a tunnel, bridge, passageway, canopy, shared below grade connection, such as a service tunnel, foundation, footing or parking facility. Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

176 Updated August 22, 2014 F Other Exemptions: Notwithstanding the provision of this by-law, development charges shall not be imposed with respect to: a) lands, buildings or structures used or to be used for a place of worship or for the purposes of a cemetery or burial ground exempt from taxation under the Assessment Act; b) a public hospital receiving aid under the Public Hospitals Act, R.S.O. 1990, Chap. P.40, as amended, or any successor thereof; c) the erection of a temporary building without a foundation defined in the Building Code for a period not exceeding nine consecutive months; and d) the development of non-residential farm buildings constructed for bona fide farm uses, which qualify as a farm business, being that which operates with a valid Farm Business Registration Number and is assessed in the Farmland Realty Tax Class. 3.8 Discounts: The development of non-residential farm buildings constructed for bona fide farm uses, which qualify as a farm business, being that which operates with a valid Farm Business Registration Number and is assessed in the Farmland Realty Tax Class will be imposed the development charges as set out in Schedules B-1 to B-6. Amount of Charges 3.9 Residential The development charges set out in Schedules B-1 to B-6 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 Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

177 Updated August 22, 2014 F-15 residential uses in the mixed use building or structure, according to the type of residential unit, and calculated with respect to each of the services according to the type of residential use Non-Residential The development charges described in Schedules B-1 to B-6 of 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, and calculated with respect to each of the services according to the total floor area of the non-residential use. Wind Turbines 3.11 The development charges described in Schedules B-1 to B-6 of this by-law shall be imposed on wind turbines with respect to roads and related, fire protection services, police services and administration on a per unit basis. Reduction of Development Charges for Redevelopment 3.12 Despite any other provisions of this By-law, where, as a result of the redevelopment of land, a building or structure existing on the same land within 5 years prior to the date of payment of development charges in regard to such redevelopment was, or is to be demolished, in whole or in part, or converted from one principal use to another principal use on the same land, in order to facilitate the redevelopment, the development charges otherwise payable with respect to such redevelopment shall be reduced by the following amounts: (a) in the case of a residential building or structure, or in the case of a mixeduse building or structure, the residential uses in the mixed-use building or structure, an amount calculated by multiplying the applicable development charge under subsection 3.9 by the number, according to type, of dwelling units that have been or will be demolished or converted to another principal use; and Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

178 Updated August 22, 2014 F-16 (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 3.10, 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. Time of Payment of Development Charges 3.13 Development charges imposed under this By-law are calculated, payable, and collected upon issuance of a building permit for the development Despite section 3.13, Council from time to time, and at any time, may enter into agreements providing for all or any part of a development charge to be paid before or after it would otherwise be payable, in accordance with section 27 of the Act. 4. PAYMENT BY SERVICES 4.1 Despite the payment required under subsections 3.8 and 3.9, 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 may be adjusted annually, without amendment to this By-law, commencing on the 1 st of January, 2015 and each year thereafter, in accordance with the prescribed index in the Act. Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

179 Updated August 22, 2014 F SCHEDULES 6.1 The following schedules shall form part of this By-law: Schedule A - Components of Services Designated in subsection 2.1 Schedule B-1 - Residential and Non-Residential Development Charges September 1, 2014 to December 1, 2014 Schedule B-2 - Residential and Non-Residential Development Charges January 1, 2015 to December 1, 2015 Schedule B-3 - Residential and Non-Residential Development Charges January 1, 2016 to December 1, 2016 Schedule B-4 - Residential and Non-Residential Development Charges January 1, 2017 to December 1, 2017 Schedule B-5 - Residential and Non-Residential Development Charges January 1, 2018 to December 1, 2018 Schedule B-6 - Residential and Non-Residential Development Charges January 1, 2019 Schedule C-1 - Map of Urban Service Area for Listowel and Surrounding Area Schedule C-2 - Map of Urban Service Area for Atwood Schedule C-3 - Map of Urban Service Area for Gowanstown Schedule C-4 - Map of Urban Service Area for Molesworth Schedule C-5 - Map of Listowel Southeast Drainage Area 7. CONFLICTS 7.1 Where the Municipality and an owner or former owner have entered into an agreement with respect to land within the area to which this By-law applies, and a conflict exists between the provisions of this By-law and such agreement, the provisions of the agreement shall prevail to the extent that there is a conflict. 7.2 Notwithstanding section 7.1, where a development which is the subject of an agreement to which section 7.1 applies, is subsequently the subject of one or more of the actions described in subsection 3.4(a), an additional development charge in respect of the development permitted by the action shall be calculated, payable and collected in Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

180 Updated August 22, 2014 F-18 accordance with the provisions of this By-law if the development has the effect of increasing the need for services, unless such agreement provides otherwise. 8. SEVERABILITY 8.1 If, for any reason, any provision of this By-law is held to be invalid, it is hereby declared to be the intention of Council that all the remainder of this By-law shall continue in full force and effect until repealed, re-enacted, amended or modified. 9. DATE BY-LAW IN FORCE 9.1 This By-law shall come into effect at 12:01 AM on September 1, DATE BY-LAW EXPIRES 10.1 This By-law will expire at 12:01 AM on September 1, 2019 unless it is repealed by Council at an earlier date. 11. EXISTING BY-LAW REPEALED 11.1 By-law Number , as amended is hereby repealed as of the date and time of this By-law coming into effect. PASSED THIS 25 th day of August, Mayor Municipal Clerk Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

181 Updated August 22, 2014 F % Eligible Services SCHEDULE A TO BY-LAW COMPONENTS OF SERVICES DESIGNATED IN SUBSECTION 2.1 Roads and Related Roads, Sidewalks, Streetlights, and Traffic control Rolling Stock and Equipment Facilities Fire Protection Services Fire Facilities Fire Vehicles Fire Fighter Equipment Police Services Police Facilities Water Services Treatment, Storage and Distribution Wastewater Services Treatment and Collection Stormwater Management Services Channels, Ponds, Trunk mains and Sub-trunk mains 90% Eligible Services Outdoor Recreation Parkland Development Rolling Stock and Equipment Indoor Recreation Recreation Facilities Library Library Facilities Library Materials Child Care Child Care Facilities Administration Growth Related Studies Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx

182 Updated August 22, 2014 F-20 SCHEDULE "B-1" BY-LAW NO SCHEDULE OF DEVELOPMENT CHARGES Municipal Wide Services: Service Single and Semi- Detached Dwelling SEPTEMBER 1, 2014 TO DECEMBER 31, 2014 Apartments - 2 Bedrooms + RESIDENTIAL Apartments - Bachelor and 1 Bedroom Multiples Special Care/Special Dwelling Units Commercial/ Institutional NON-RESIDENTIAL (per ft 2 of Gross Floor Area) Industrial Bona Fide Farm Wind Turbines Roads and Related 2,076 1, ,354 n/a ,354 Fire Protection Services n/a Police Services n/a Outdoor Recreation Services n/a Indoor Recreation Services 2,413 1, ,574 n/a Library Services n/a Administration n/a Child Care n/a Total Municipal Wide Services 7,353 4,042 2,627 4, ,929 Urban Services Stormwater Management Listowel Southeast Drainage Area 2,047 1, ,502 n/a Wastewater Services (Listowel & Atwood) 3,279 1,802 1,171 2,138 n/a Water Services (Listowel, Atwood & Wallace Ward) n/a Watson & Associates Economists Ltd DC Report - Addendum No. 3

183 Updated August 22, 2014 F-21 SCHEDULE "B-2" BY-LAW NO SCHEDULE OF DEVELOPMENT CHARGES Municipal Wide Services: Service Single and Semi- Detached Dwelling JANUARY 1, 2015 TO DECEMBER 31, 2015 Apartments - 2 Bedrooms + RESIDENTIAL Apartments - Bachelor and 1 Bedroom Multiples Special Care/Special Dwelling Units Commercial/ Institutional NON-RESIDENTIAL (per ft 2 of Gross Floor Area) Industrial Bona Fide Farm Wind Turbines Roads and Related 2,532 1, , ,354 Fire Protection Services Police Services Outdoor Recreation Services 1, Indoor Recreation Services 2,431 1, , Library Services Administration Child Care Total Municipal Wide Services 8,051 4,459 2,949 5,234 1, ,929 Urban Services Stormwater Management Listowel Southeast Drainage Area 2,058 1, , Wastewater Services (Listowel & Atwood) 2,589 1, , Water Services (Listowel, Atwood & Wallace Ward) Watson & Associates Economists Ltd DC Report - Addendum No. 3

184 Updated August 22, 2014 F-22 SCHEDULE "B-3" BY-LAW NO SCHEDULE OF DEVELOPMENT CHARGES Municipal Wide Services: Service Single and Semi- Detached Dwelling JANUARY 1, 2016 TO DECEMBER 31, 2016 Apartments - 2 Bedrooms + RESIDENTIAL Apartments - Bachelor and 1 Bedroom Multiples Special Care/Special Dwelling Units Commercial/ Institutional NON-RESIDENTIAL (per ft 2 of Gross Floor Area) Industrial Bona Fide Farm Wind Turbines Roads and Related 2,987 1,669 1,126 1,937 1, ,354 Fire Protection Services Police Services Outdoor Recreation Services 1, Indoor Recreation Services 2,448 1, , Library Services Administration Child Care Total Municipal Wide Services 8,745 4,875 3,273 5,675 2, ,929 Urban Services Stormwater Management Listowel Southeast Drainage Area 2,069 1, ,518 1, Wastewater Services (Listowel & Atwood) 2,589 1, , Water Services (Listowel, Atwood & Wallace Ward) Watson & Associates Economists Ltd DC Report - Addendum No. 3

185 Updated August 22, 2014 F-23 SCHEDULE "B-4" BY-LAW NO SCHEDULE OF DEVELOPMENT CHARGES Municipal Wide Services: Service Single and Semi- Detached Dwelling JANUARY 1, 2017 TO DECEMBER 31, 2017 Apartments - 2 Bedrooms + RESIDENTIAL Apartments - Bachelor and 1 Bedroom Multiples Special Care/Special Dwelling Units Commercial/ Institutional NON-RESIDENTIAL (per ft 2 of Gross Floor Area) Industrial Bona Fide Farm Wind Turbines Roads and Related 3,443 1,933 1,319 2,228 1, ,354 Fire Protection Services Police Services Outdoor Recreation Services 1, Indoor Recreation Services 2,466 1, , Library Services Administration Child Care Total Municipal Wide Services 9,445 5,293 3,596 6,114 4, ,929 Urban Services Stormwater Management Listowel Southeast Drainage Area 2,080 1, ,526 1, Wastewater Services (Listowel & Atwood) 2,589 1, ,688 1, Water Services (Listowel, Atwood & Wallace Ward) Watson & Associates Economists Ltd DC Report - Addendum No. 3

186 Updated August 22, 2014 F-24 SCHEDULE "B-5" BY-LAW NO SCHEDULE OF DEVELOPMENT CHARGES Municipal Wide Services: Service Single and Semi- Detached Dwelling JANUARY 1, 2018 TO DECEMBER 31, 2018 Apartments - 2 Bedrooms + RESIDENTIAL Apartments - Bachelor and 1 Bedroom Multiples Special Care/Special Dwelling Units Commercial/ Institutional NON-RESIDENTIAL (per ft 2 of Gross Floor Area) Industrial Bona Fide Farm Wind Turbines Roads and Related 3,899 2,197 1,511 2,520 2, ,354 Fire Protection Services Police Services Outdoor Recreation Services 1, Indoor Recreation Services 2,483 1, ,606 1, Library Services Administration Child Care Total Municipal Wide Services 10,140 5,709 3,920 6,555 5, ,929 Urban Services Stormwater Management Listowel Southeast Drainage Area 2,091 1, ,534 1, Wastewater Services (Listowel & Atwood) 2,589 1, ,688 1, Water Services (Listowel, Atwood & Wallace Ward) Watson & Associates Economists Ltd DC Report - Addendum No. 3

187 Updated August 22, 2014 F-25 SCHEDULE "B-6" BY-LAW NO SCHEDULE OF DEVELOPMENT CHARGES Municipal Wide Services: Service Single and Semi- Detached Dwelling Apartments - 2 Bedrooms + JANUARY 1, 2019 RESIDENTIAL Apartments - Bachelor and 1 Bedroom Multiples Special Care/Special Dwelling Units Commercial/ Institutional NON-RESIDENTIAL (per ft 2 of Gross Floor Area) Industrial Bona Fide Farm Wind Turbines Roads and Related 4,354 2,461 1,704 2,811 1, ,354 Fire Protection Services Police Services Outdoor Recreation Services 1, Indoor Recreation Services 2,501 1, , Library Services Administration Child Care Total Municipal Wide Services 10,837 6,126 4,242 6,995 3, ,929 Urban Services Stormwater Management Listowel Southeast Drainage Area 2,102 1, , Wastewater Services (Listowel & Atwood) 2,589 1,464 1,013 1, Water Services (Listowel, Atwood & Wallace Ward) Watson & Associates Economists Ltd DC Report - Addendum No. 3

188 Updated August 22, 2014 F-26 Watson & Associates Economists Ltd.q H:\North Perth\2014 DC Study\Addendum No. 3\Report - Addendum3.docx