Development Charge Impost Fee City of Kingston Ontario

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					     CITY OF KINGSTON

2009 DEVELOPMENT CHARGE/
 IMPOST FEE BACKGROUND
          STUDY




    CONSOLIDATED REPORT




           JUNE 29, 2009
WITH ADDENDUM DATED AUGUST 25, 2009
                                      CONTENTS

                                                                                             Page

ACKNOWLEDGEMENTS

EXECUTIVE SUMMARY                                                                              (i)

1.       INTRODUCTION                                                                         1-1

2.       CURRENT CITY OF KINGSTON DEVELOPMENT
         CHARGE AND IMPOST FEE POLICY                                                         2-1

3.       ANTICIPATED DEVELOPMENT IN KINGSTON                                                  3-1

4.       DEVELOPMENT CHARGE ELIGIBLE COSTS                                                    4-1

5.       CALCULATION OF DEVELOPMENT CHARGE RATES                                              5-1

6.       CALCULATION OF IMPOST FEE RATES AND BACKGROUND
         INFORMATION                                                                          6-1

7.       DEVELOPMENT CHARGE AND IMPOST FEE
         POLICIES AND BY-LAW RULES                                                            7-1


APPENDICES

A        RESIDENTIAL AND NON-RESIDENTIAL GROWTH FORECAST –
         BACKGROUND INFORMATION

B        METHODOLOGY FOR CALCULATING DEVELOPMENT CHARGES

C        DEVELOPMENT CHARGE AND IMPOST FEE CASHFLOW CALCULATIONS

D        DEVELOPMENT CHARGE AND IMPOST FEE RESERVE FUNDS STATUS

E        OVERVIEW OF FINANCIAL IMPACT

F        LONG TERM CAPITAL AND OPERATING COST EXAMINATION

G        LOCAL SERVICE GUIDELINES

H        PROPOSED CITY OF KINGSTON DEVELOPMENT CHARGE BY-LAW (2009)

I        PROPOSED UTILITIES KINGSTON IMPOST FEE BY-LAW (2009)



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                                      ACKNOWLEDGEMENTS

The consultants wish to acknowledge, with appreciation, the considerable efforts by City of
Kingston and Utilities Kingston staff in providing input, attendance at meetings and other
assistance as required during this process. Most particularly: Lana Foulds, Financial Analyst,
Deanna Green, Manager, Traffic Engineering, Allen Lucas, Engineer, Utilities Kingston
Technical Services, Jim Miller, Manager, Utilities Technical Services, Judy Reichstein,
Research and Policy Analyst, Mark VanBuren, Director of Engineering and George Wallace,
Director of Planning & Development, and also Christa Wallbridge of KEDCO.


We would like to express our sincere appreciation to the Development Charges and Impost Fee
Steering Committee for their efforts and participation in the process. The steering committee is
responsible for helping to provide overall direction to the project, and is comprised of the
following individuals:

                                 Gerard Hunt, CAO, City of Kingston (Chair)

                               Jim Keech, President & CEO, Utilities Kingston

                             Neal Ritchie, Kingston Homebuilders Association

                            Peter Splinter, Kingston Homebuilders Association

                             Dan Corcoran, Kingston Construction Association

                              Doug Haight, Kingston Construction Association

                                           Jeff Garrah, KEDCO




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                                      EXECUTIVE SUMMARY




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EXECUTIVE SUMMARY

1.       Purpose of This Background Study

1.1      This Background Study has been prepared pursuant to Section 10 of the Development
Charges Act, 1997 (DCA) and in order to replace the existing City-wide development charge by-
law for the City of Kingston. The current City-wide development charge by-law (By-law 2004-
256) expires on September 28, 2009; a new by-law must be passed before that date if the City
wishes to continue levying a municipal-wide development charge.


1.2      The City of Kingston imposes water and sewer rates under the authority of by-law 2004-
257 in all serviced areas within the City of Kingston. It is intended that by-law 2004-257 will be
updated and replaced by the City at the same time as DC by-law 2004-256, although this by-law
is not subject to the same legislated by-law expiry provisions. For convenience, the background
information regarding water and sewer services and the calculation of cost recovery rates is
being presented in the same document as the development charge background study.


1.3      This Background Study, dated June 29, 2009, together with the proposed by-law(s), is
being made available to the public more than two weeks prior to the public meeting, as required
under Section 12 of the DCA; the meeting is scheduled for July 14, 2009.


2.       Council’s Role

2.1      The development charges (DCs) calculated herein represent those which have been
identified as recoverable under the provisions of the DCA, based on the City’s capital spending
plans and other assumptions which are responsive to the requirements of the legislation. The
municipality may impose charges in the DC by-law up to those calculated in the final report. A
decision is required by Council, after receiving input at the public meeting, the completed study
and by-law, and the staff report (which will address impacts, as directed by Council), as to
whether the full calculated charge should be levied on each of residential, retail, other
commercial, industrial and institutional development.




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2.2      If Council elects to reduce the development charges for any category of development,
the amount of the revenue reduction must be funded from taxes and/or user rates. The DCA
does not permit DC costs related to one use to be funded through DCs charged on another use.


2.3      Council decisions will also be required with respect to non-statutory exemptions,
indexing of rates, by-law term and other development charge policies, including phasing in of
any of the charges and applicability of the charge to the redevelopment of land. Final Council
decisions will be required at the completion of the input process on all policies.


3.       Growth Forecast (Chapter 3)

3.1      The DCA requires that growth related costs for some services (eg. libraries, parks and
recreation, transit, growth-related studies) be determined on a ten year planning period basis,
while permitting a longer planning period for other services (eg. water, wastewater, roads,
protection). Forecasts for within boundary growth were therefore prepared for residential and
non-residential growth for 10 year (2009-2019) and Build-out planning periods. The build-out
planning horizon represents approximately twenty years of growth (to 2029) for the City of
Kingston.


3.2      The residential and non-residential forecasts on which the development charge and
impost fees are calculated are summarized below:


                                                                                  Build-out
                                                       2009-2019           City-wide    Urban Area
Residential
      (Net) Population Increment                              10,025           21,882                  20,467
      Additional Housing Units                                 6,350           12,885                  12,205
Non-Residential
      Employment Increase                                     6,515           13,100               12,445
       Gross Floor Area Increase (in. sq.ft.)             4,622,600        9,171,000            8,712,450


See Chapter 3 and Appendix A for detailed information on the growth projections.




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4.       The 2009 DC Calculation

4.1      The DCA requires that the calculation of development charges for each service be
undertaken on the basis of twelve steps (Appendix B).               There are significant legislative
restrictions on the capital costs which can be included in a DC calculation. The 2009-2018 City
of Kingston Capital Budget, together with the City’s Transportation Master Plan (2004), as
updated by the Transportation Model Update Model Development & Calibration Draft Report
prepared by AECOM Canada Ltd. in June, 2009, provide the primary basis for identifying works
(and costs) wholly or partially related to growth and eligible for inclusion in the DC calculation.


4.2      Chapter 4 sets out the determination of DC eligible costs for each service.


4.3      The City’s available DC and Impost reserve fund balances are set out in Appendix D,
along with identified commitments from those reserves and how they will be treated in the
calculation of the new charges and fees.


4.4      Summary tables of DC eligible costs by service are set out in Tables S-1 (10 year
services) and Table S-2 (build-out services). Borrowing costs have also been included for the
non-residential roads service, based on information developed in Appendix C.


5.       Development Charge Rates

5.1      The calculated residential single and semi detached rate is $9,490 per unit (Table S-4).
Rates for other unit types included in the By-law are as follows: Apartments (2 Bedrooms +) -
$6,071 per unit; Apartments (Bachelor and 1 Bedroom) - $4,246 per unit; and Other Multiple
dwellings - $7,265 per unit.


5.2      Table S-4 compares the current in force rates (indexing has been projected to
September 29, 2009 assuming an increase of 4% over September 2008 rates), with the
calculated 2009 DC rates for single and semi detached residential units.                 The increase in
development charge rate between the existing and calculated rate is 25.3% (+$1,918 per unit).


5.3      The 2009 non-residential charge is calculated at $4.92 (Table S-4).           This represents a
1.4% increase (+$0.07 per sq.ft.) over the current rate of $4.85.
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                                                                                  TABLE S-1
                                                                              CITY OF KINGSTON
                                                                      DEVELOPMENT CHARGE CALCULATION
                                                                             CITY-WIDE SERVICES
                                                                                  2009 - 2019
                                                                                                                                                         1
                                                                                 2009 $ Eligible Cost         2009 $ Eligible Cost         Current Rates
                               SERVICE                                      Residential     Non-Residential   SDU            per s.f.     SDU        per s.f.
                                                                                $                  $            $              $           $             $
    1. Protection (Fire)
        1.1 Fire Facilities                                                      1,373,700         772,700          256            0.17
        1.2 Fire Vehicles & Equipment                                              320,000         180,000           60            0.04
                                                                                 1,693,700         952,700          316            0.21       334             0.20
    2. Protection (Police)
        2.1 Police Vehicles                                                        704,000         396,000          131            0.08
        2.2 Police Officer Outfitting                                              139,100          78,200           26            0.02
        2.3 Police Facilities                                                      268,100         150,800           50            0.03
                                                                                 1,111,200         625,000          207            0.13       151             0.11

    3. Parks and Recreation
        3.1 Major Indoor Recreation Facilities                                  4,814,300          253,300          896            0.05
        3.2 Parkland Development                                                7,182,000          378,000        1,337            0.08
                                                                               11,996,300          631,300        2,233            0.13      2,203            0.16

    4. Libraries
        4.1 Library Collections                                                  2,351,200         123,700          438            0.03
                                                                                 2,351,200         123,700          438            0.03       479             0.02

    5. Transit
        5.1 Transit Facilities                                                     223,800         143,000           42            0.04
        5.2 Transit and KAB Vehicles                                               950,700         607,800          177            0.13
        5.3 Transit Shelters                                                        30,300          19,400            6            0.00
                                                                                 1,204,800         770,200          225            0.17       334             0.29

    6. Social Housing
        6.1 Social Housing                                                         560,794          29,515          104            0.01         9             0.00

    7. Administration
        7.1 General Development Related Studies                                    469,300         201,100           87            0.05       106             0.09


    TOTAL                                                                     $19,387,294        $3,333,515      $3,610          $0.73     $3,617            $0.87

    DC ELIGIBLE CAPITAL COST                                                  $19,387,294        $3,333,515
    2009 - 2019 Gross Population / GFA Growth (sq.ft.)                             15,365         4,622,600
    Cost Per Capita / Non-Residential GFA (sq.ft.)                              $1,261.78             $0.73
    By Residential Unit Type                     p.p.u
       Single and Semi-Detached                  2.86                                   $3,610
       Apartments 2 Bedroom +                    1.83                                   $2,309
       Apartments Bach. & 1 Bdrm                 1.28                                   $1,615
       Other Multiples                           2.19                                   $2,763
1
    Current In-force rates have been adjusted by an estimated 2009 index value of 4%.




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                                                                                  TABLE S-2
                                                                              CITY OF KINGSTON
                                                                      DEVELOPMENT CHARGE CALCULATION
                                                                             CITY-WIDE SERVICES
                                                                                2009 to Buildout


                                                                                                                                                          1
                                                                                 2009 $ Eligible Cost          2009 $ Eligible Cost         Current Rates
                               SERVICE                                      Residential     Non-Residential    SDU            per s.f.     SDU        per s.f.
                                                                                $                  $             $              $           $             $
    8. Roads and Related
        8.1 Roads                                                              60,662,500         35,627,200       5,762            3.88
        8.2 Works & Maintenance Facilities                                        798,600            469,000          76            0.05
        8.3 Corporate Fleet                                                       441,000            259,000          42            0.03
             Financing Costs (Roads only)                                               0          2,109,300                        0.23

    DC ELIGIBLE CAPITAL COST                                                  $61,902,100        $38,464,500      $5,880          $4.19     $3,955            $3.98
    2009 - 2029 Gross Population / GFA Growth (sq.ft.)                             30,110          9,171,000
    Cost Per Capita / Non-Residential GFA (sq.ft.)                              $2,055.87              $4.19
    By Residential Unit Type                    p.p.u.
       Single and Semi-Detached                  2.86                                   $5,880
       Apartments 2 Bedroom +                    1.83                                   $3,762
       Apartments Bach.+1 Bdrm                   1.28                                   $2,631
       Other Multiples                           2.19                                   $4,502
1
    Current In-force rates have been adjusted by an estimated 2009 index value of 4%.




6.             Impost Fee Rates

6.1            The calculated residential single and semi detached impost fee is $4,138 per unit (Table
S-4). Fees for other unit types included in the by-law are as follows: Apartments (2 Bedrooms
+) at $2,647 per unit; Apartments (Bachelor and 1 Bedroom) at $1,852 per unit; and Other
Multiple dwellings at $3,168 per unit.


6.2            Table S-4 compares the current in force impost fees (indexing has been projected to
September 29, 2009 assuming an increase of 4% over September 2008 rates) to the calculated
2009 DC rates for single and semi detached residential units. There is a reduction in the impost
fee between the existing and calculated rate of 6.7% (-$296 per unit).


6.3            The non-residential fee is currently $5.71 per sq.ft. compared to the calculated rate of
$6.79 (Table S-4). This represents an 18.9% increase (+$1.08 per sq.ft.).




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                                                                                       TABLE S-3
                                                                                   CITY OF KINGSTON
                                                                               IMPOST FEE CALCULATION
                                                                                 URBAN AREA SERVICES
                                                                                    2009 to Buildout


                                                                                                                                                                  1
                                                                                 2009 $ Impost Cost             2009 $ Impost Cost          Current Impost Fees
                               SERVICE                                      Residential    Non-Residential      SDU          per s.f.        SDU         per s.f.
                                                                                $                $                $             $             $             $
    9. Water
        9.1 Water Supply and Treatment, Storage                                18,777,400          22,950,200       1,907            2.63
        9.2 Major Watermains                                                    4,855,500           4,076,200         493            0.47
             Financing Costs                                                       49,200           5,924,400           5            0.68
                                                                               23,682,100          32,950,800       2,405            3.78       1,727             2.05

    10. Wastewater
        10.1 Wastewater Treatment                                              11,615,000          17,085,000       1,180            1.96
        10.2 Wastewater - Major Works                                           1,534,500           1,875,500         156            0.22
        10.3 Wastewater - Trunks                                                3,909,700           3,073,400         397            0.35
             Financing Costs                                                            0           4,181,900                        0.48
                                                                               17,059,200          26,215,800       1,733            3.01       2,707             3.66


    IMPOST ELIGIBLE CAPITAL COST                                              $40,741,300         $59,166,600      $4,138          $6.79       $4,434            $5.71
    2009 - 2029 Gross Population / GFA Growth (sq.ft.)                             28,162           8,712,450
    Cost Per Capita / Non-Residential GFA (sq.ft.)                              $1,446.68               $6.79
    By Residential Unit Type                    p.p.u.
       Single and Semi-Detached                  2.86                                   $4,138
       Apartments 2 Bedroom +                    1.83                                   $2,647
       Apartments Bach.+1 Bdrm                   1.28                                   $1,852
       Other Multiples                           2.19                                   $3,168
1
    Current In-force rates have been adjusted by an estimated 2009 index value of 4%.




                                                                            TABLE S-4
                                                                        CITY OF KINGSTON
                                                          DEVELOPMENT CHARGE AND IMPOST FEE CALCULATION
                                                                               TOTAL ALL SERVICES
                                                                                                                                                             1
                                                                                 2009 $ Eligible Cost           2009 $ Eligible Cost          Current Rates
                                                                            Residential     Non-Residential     SDU            per s.f.      SDU        per s.f.
                                                                                $                  $              $              $            $             $

    CITY-WIDE SERVICES (2009 - 2019)                                           19,387,294           3,333,515       3,610            0.73       3,617             0.87

    CITY-WIDE SERVICES (to Build-out)                                          61,902,100          38,464,500       5,880            4.19       3,955             3.98

    TOTAL DEVELOPMENT CHARGES                                                  81,289,394          41,798,015       9,490            4.92       7,572             4.85

    IMPOST FEES:
    URBAN AREA SERVICES (to Build-out)                                         40,741,300          59,166,600       4,138            6.79       4,434             5.71


    TOTAL DEVELOPMENT CHARGES AND IMPOST FEES                               $122,030,694         $100,964,615    $13,628          $11.71      $12,006        $10.56

1
    Current In-force rates have been adjusted by an estimated 2009 index value of 4%.




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7.       Development Charge Rules

7.1      The DCA requires that development charge rules be established for the application of
the development charge. The recommended rules for the proposed development charge and
impost fee by-laws are set out in Chapter 7. As noted in 2, decisions by Council on these rules
are required at the completion of the input process.



8.       Proposed Development Charge and Impost By-laws

8.1      The proposed development charge by-law for the City-wide DC is included in
Appendix H.

8.2      The proposed impost fee by-law is included in Appendix I.




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                                      1. INTRODUCTION




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1.       INTRODUCTION

1.1      Process

The DC Background Study has been prepared pursuant to the requirements of the
Development Charges Act, 1997 (s.10), and accordingly, calculates new development charges
and sets out proposed policies for the City of Kingston to replace the municipal-wide DC by-law
(By-law No. 2004-256), which will expire on September 28, 2009. The study also addresses the
requirement for “rules” (Chapter 7) and provides the proposed (new) City-wide development
charge by-law (Appendix H).


Concurrently, the City of Kingston will be updating the Impost Fee by-law (By-law No. 2004-
257), with the intention of replacing it in September, 2009 as well (Appendix I).


Watson & Associates Economists Ltd. was retained to undertake the DC/Impost Fee study
process in October, 2008. The consultant worked with the DC/Impost Committee, comprised of
City staff, KEDCO staff and representatives of the development community, in preparing the DC
analysis and policy recommendations.


The DC and Impost Fee Background Study (and proposed by-laws) will be distributed to
members of the public, in order to provide interested parties with sufficient background
information on the legislation as well as the study recommendations, and an outline of the basis
for these recommendations.


The Public Meeting required under section 12 of the Development Charges Act, 1997, has been
called for July 14, 2009 in the Council Chambers of the City. Its purpose is to enable the public
to understand generally the development charges proposal, and to solicit public input. The
meeting is also being held to explain the study’s purpose, methodology and the proposed
modifications to the City development charges.


In accordance with the legislation, this background study and proposed DC by-law will be
available for public review on June 29, 2009.



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The process to be followed in finalizing the DC/Impost Fee Background Study and
recommendations includes:


        consideration of responses received prior to, at or immediately following the Public
         Meeting, with the deadline for receipt of written responses being July 31, 2009;


        presentation of Staff Report to Council, including finalization of the DC Impost Fee
         Background Study and by-laws and response to submissions on September 1, 2009;


        Council passage of DC by-law on September 1, 2009.



1.2      Development Charges Act (DCA) Background Study
         Requirements

The DCA requires that a development charge background study must be completed by City
Council before passing a development charge by-law. The mandatory inclusions in such a
study are set out in s.10 of the DCA and in s.8 of O.Reg. 82/98, and are as follows:


a)       “the estimates under paragraph 1 of subsection 5(1) of the anticipated amount, type and
         location of development (addressed in Chapter 3 of this report);


b)       the calculations under paragraphs 2 to 8 of subsection 5(1) for each service to which the
         development charge by-law would relate (addressed in Chapters 4 and 5 of this report);


c)       an examination, for each service to which the development charge by-law would relate,
         of the long term capital and operating costs for capital infrastructure required for the
         service (addressed in Appendix H of this report);


d)       the following for each service to which the development charge relates:


                  “1.       The total of the estimated capital costs relating to the service.

                   2.       The allocation of the costs referred to in paragraph 1 between
                            costs that would benefit new development and costs that would
                            benefit existing development.
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                  3.        The total of the estimated capital costs relating to the service that
                            will be incurred during the term of the proposed development
                            charge by-law.

                  4.        The allocation of the costs referred to in paragraph 3 between
                            costs that would benefit new development and costs that would
                            benefit existing development.

                  5.        The estimated and actual value of credits that are being carried
                            forward relating to the service.” (O.Reg. 82/98 s.8 and addressed
                            in Appendix D of this report)




1.3      Key Legislative Requirements

A summary of key requirements of the Development Charges Act, 1997 (DCA, 1997) is set out
below.


1.       Services Covered – service coverage excludes the provision of cultural or
         entertainment facilities (e.g. museums, theatres and art galleries); tourism facilities (e.g.
         convention centre); parkland acquisition;1 hospitals; waste management services; and
         headquarters for the general administration of municipalities and local boards.


2.       Capital Costs – capital costs which may potentially be included in the calculation
         include the capital component of the cost to lease an asset, the cost of related studies,
         interest on borrowing, and exclude computer equipment, and rolling stock with an
         estimated useful lifetime of six years or less.


3.       Service Standards – service standards are based upon the average level of service
         provided in the municipality over the 10-year period immediately preceding the
         preparation of the background study. In addition, the regulation requires that “...both the
         quality and quantity of a service shall be taken into account in determining the (average)
         level of service.” O.Reg. 206/04 specified that the determination of the quality of a
         service did not include any allowance for depreciation.


1
 Including woodlots, E.S.A.’s, but not including the site area (as defined) for an enclosed structure used
throughout the year for public recreation.
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         However, s.4(3) of O.Reg. 82/98 states that “if the average level of service determined is
         lower than the standard level of service required under another Act, the standard level of
         service required under the other Act may be deemed … to be the average level of
         service.” This section applies particularly to water, wastewater and storm drainage,
         where Provincial Regulations often determine requirements.


4.       Industrial Expansion Exemption - the Act provides for a mandatory DC exemption for
         enlargements to existing industrial buildings (as defined in the regulation) equal to 50%
         of the floor area of the existing building prior to the enlargement.


5.       Capital Cost Reduction - a 10% capital cost reduction applies to the otherwise eligible
         costs for all services, other than those pertaining to water service (including distribution
         and treatment subservices), waste water services (including transmission and treatment
         subservices), storm water and drainage control, highways (as per s.s.1(1) of the
         Municipal Act), police and fire protection.


6.       Development Charge Background Study - requirements respecting the content of a
         DC Background Study are explicitly set out in the Act.              Requirements include the
         identification of costs and growth estimates, an examination for each by-law service of
         the long term capital and operating costs for capital infrastructure required, identification
         of costs to be incurred during the term of the by-law, and various cost allocations. The
         study and proposed by-law must be made available to the public at least two weeks prior
         to the (first) public meeting.


7.       Prescribed Index - the regulation under the Act specifies the use of the Statistics
         Canada Quarterly, “Construction Price Statistics” (Cat. 62-007) for indexing purposes.
         (This catalogue has subsequently been renamed “Capital Expenditure Price Statistics.”)


8.       Excess Capacity - the recoverable service requirement must be reduced by the part
         that can be met using the municipality’s excess capacity, except for the excess capacity
         which Council expressed a clear intention, before or at the time the capacity was
         created, would be paid for by development charges or other similar charges.




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9.       Treasurer’s Statement - requires information to be provided as to reserve fund
         continuity, borrowings from the fund, interest accrued thereon, repayment of borrowings,
         non-reserve fund spending on projects, as well as detailed accounting for credits and the
         source thereof.


10.      Front Ending Agreements - agreements may include work done before, as well as
         after, the agreement is entered into. In addition, the work must be in an area subject to
         the DC, non-party payments may be required at an earlier or later date than building
         permit issuance and may provide for “tiering” of the burden against subsequent
         participants, etc. Further, the Act restricts front-ending agreements to sanitary sewer,
         water, roads, and storm water management services.


11.      Council Intentions - if a need for service is to be included in the calculation, Council
         must have indicated that it intends to ensure that such an increase in need will be met
         by including it in a Council-approved Official Plan, capital budget/forecast or similar
         expression of Council.


12.      Capital Costs - the increase in the need for service attributable to the anticipated
         development be estimated, as well as the capital costs (including lease costs) necessary
         to provide the increased service.     The latter must be reduced by applicable capital
         grants, subsidies and other contributions. Also, “capital costs” may include authorized
         costs incurred or proposed to be incurred by others on behalf of a municipality/local
         board, as well as those directly incurred.


13.      Cross Subsidization - a cost recovery shortfall from one type of development may not
         be made up through higher charges on other types of development.


14.      DC Reserve Funds – reserve funds may be created so as to group services into
         categories, which are then deemed to be a single service in relation to the use of money
         from reserve funds and for credits.


15.      OMB Powers - the OMB is not empowered to remove or reduce the scope of an
         exemption, to change the phasing in provisions to make the charge payable earlier, to



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         increase the charge in any particular case or to change the by-law expiry date as
         approved by Council.


16.      DC Reserve Fund Draws - the DC reserve fund money may be spent only for capital
         costs as determined by the legislated method for calculating development charges.


17.      DC Reserve Fund Borrowing – borrowing between DC reserve funds is permitted,
         subject to repayment of interest at the prescribed minimum rate.


18.      Credits - a DC credit must be given where a “ ... municipality agrees to allow a person to
         perform work that relates to a service to which a DC by-law relates ...” Such credit is the
         reasonable cost of doing the work as agreed by the municipality and the landowner.
         Credit (or partial credit) may be given before the work is completed. It is a credit only in
         relation to the service to which the work relates and with respect to that part of the
         development charge that relates to the service. The credit may be transferred under
         defined conditions.


19.      Subdivision Agreement Conditions - agreements may include “local services related
         to a plan of subdivision or within the area to which the plan relates”.


20.      Regulations - the Lieutenant-Governor may make regulations as defined in the Act.




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           2. CURRENT CITY OF KINGSTON DEVELOPMENT
                         CHARGE AND IMPOST FEE POLICY




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2.       CURRENT CITY OF KINGSTON DEVELOPMENT
         CHARGE AND IMPOST FEE POLICY

2.1      Current In-Force Development Charges and Impost Fees

The City of Kingston currently administers both a development charge by-law under the
Development Charges Act, and an impost fee by-law under the Municipal Act for the recovery of
water and sanitary sewer capital costs:


        City-wide DC By-law (2004-256) - which came into force on September 29, 2004. This
         by-law establishes charges for all land uses and eligible services for all new
         development in the City. The by-law expires on September 28, 2009. The proposed by-
         law in Appendix H will replace this by-law.


        City-wide Impost Fee By-law (2004-257) - which came into force on September 29,
         2004. This by-law establishes impost fees for water and sanitary sewer services for
         urban land uses throughout the City. The proposed by-law in Appendix I will replace this
         by-law.


This Background Study Report provides background information for both by-laws, and both by-
laws are planned to be replaced concurrently in September, 2009.


DC By-law 2004-256:
The current City-wide DC by-law provides for charges for all types of development within the
City boundary. The by-law identifies the following municipal services: Protection, Roads and
Related; Transit; Parks and Recreation; Libraries; Social Housing and Administration.


Table 2-1(a) sets out the current DC rates under By-law 2004-256. These rates have been
indexed by 21%, in accordance with the Statistics Canada Construction Price Statistics index for
the Ottawa Region, since by-law passage in 2004. The allocation of the DCs for each service
by each type of development is also shown in Table 2-1(a).




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For residential development, four types of residential units have been defined, with charges
based on average occupancy for each type of unit. The rate for single and semi detached units
is currently $7,280 per unit, with apartments ranging from $3,542 to $4,558 per unit, depending
on the number of bedrooms. The current DC for other multiple (all other) units is $5,837.


The current DC rate for non-residential development is $4.67 per sq.ft.                  Industrial and
commercial office uses have been provided with an exemption under the current by-law.


Impost Fee By-law 2004-257:
The current City-wide Impost Fee by-law provides for fees for all types of development within
the serviced City boundary. The by-law identifies the following municipal services: Water and
Sewer.


Table 2-1(b) sets out the current Impost Fee rates under By-law 2004-257. These rates have
also been indexed by 21%, in accordance with the Statistics Canada Construction Price
Statistics index for the Ottawa Region, since by-law passage in 2004, and the allocation of the
rates for each service by each type of development is also shown in Table 2-1(b).


For residential development, four types of residential units have been defined, with charges
based on average occupancy for each type of unit.         The Impost fee for single and semi
detached units is currently $4,264 per unit, with apartments ranging from $2,058 to $2,645 per
unit, depending on the number of bedrooms. The current Impost fee for other multiple (all other)
units is $3,588.


The current Impost fee for non-residential development is $5.49 per sq.ft.               Industrial and
commercial office uses have been phased-in annually over the course of the by-law period.


Charges under the Impost Fee by-law noted above are in addition to those applicable under the
City-wide DC by-law in the serviced areas to which they apply.




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2.2 Summary of City-wide DC and Impost By-law Provisions

The City of Kingston’s City-wide DC and Impost Fee by-laws were approved on September 7,
2004 and became effective on September 29, 2004. The key policy provisions within the two
by-laws are fundamentally the same, except as noted below, and they include the following:




                                                         Table 2-1 (a)
              Schedule of City-wide Development Charges under By-law 2004-256
                                  Rates in Effect from September 29, 2008

                                                                        RESIDENTIAL                                       NON-RESIDENTIAL
                                           Single-Detached          Apartments        Apartments         Multiple
                                           Dwelling & Semi-      2 Bedrooms +         Bachelor &         Dwellings               (per s.f. of
         SERVICE                        Detached Dwelling                             1 Bedroom                               Gross Floor Area)

  Protection                           $                  466   $          295    $           229    $           355      $                     0.30
  Roads and Related                                     3,804            2,361              1,835              3,191                            3.83
  Transit                                                 321              205                159                245                            0.28
  Parks and Recreation                                  2,119            1,338              1,041              1,613                            0.15
  Libraries                                               462              291                225                351                            0.02
  Social Housing                                            9                4                  3                  5                             -
  Administration                                          102               64                 50                 77                            0.09

  TOTAL DEVELOPMENT CHARGE             $                7,280   $        4,558    $         3,542    $         5,837                            4.67




                                                         Table 2-1 (b)
                     Schedule of City-wide Impost Fees under By-law 2004-257
                                  Rates in Effect from September 29, 2008

                                                                RESIDENTIAL                                              NON-RESIDENTIAL
                               Single-Detached          Apartments           Apartments             Multiple
                               Dwelling & Semi-      2 Bedrooms +            Bachelor &            Dwellings                   (per s.f. of
        SERVICE               Detached Dwelling                              1 Bedroom                                   Gross Floor Area)


   Water                      $            1,661    $           1,029    $              802    $          1,397      $                          1.97
   Sewer                                   2,603                1,616                 1,256               2,191                                 3.52


   TOTAL IMPOST FEE           $            4,264    $           2,645    $            2,058    $          3,588      $                          5.49




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        Lands Affected - All lands in Kingston other than those exempted under the provisions
         of the DC and Impost Fee by-laws (s. 5 and s. 2 respectively).


        Services for Which the Charge is Payable – s. 3 and s. 2 respectively, designate the
         services for which charges are payable.


        Timing of Calculation and Payment – The by-law provisions indicate that charges are
         calculated and payable in full on the date of the first building permit issuance in relation
         to an applicable building or structure (s.14 and s. 4 respectively). In addition, the Impost
         Fee by-law provides that where no building permit is required, fees are payable upon
         connection to services.


         No building permit will be issued until the development charge is paid in full (s. 14).


        Indexing – Charges shall be increased or decreased annually on September 29 on the
         basis of the change in the Statistics Canada Quarterly, Construction Price Statistics,
         based on the most recently available 12 month period (s.17 and s. 14 respectively). The
         City has implemented these provisions annually since by-law passage in 2004.


        Multiple Charges – More than one development charge may be imposed where a
         second planning approval increases the need for services (s.9).


        Accounting Provisions – The Municipal Treasurer shall maintain three separate
         reserve funds inclusive of interest earnings, as follows:


                  i)        DC Reserve Fund - Protection, Roads and Related
                  ii)       DC Reserve Fund - Parks and Recreation, Transit, Libraries, Social
                            Housing and Administration, and
                  iii)      Impost Fee Reserve Fund - Water Works and Sewer.


         Appropriate reserve fund continuity statements are to be provided to Council annually
         (s.15 and s. 18 respectively). In the case of development charges, an annual report will
         also be provided to the Minister of Municipal Affairs and Housing in accordance with
         Section 43 of the DCA.

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        Exemptions – The DC by-law exemptions (s.5) include the statutory exemptions (set
         out in s.2, 3 and 4 of the DCA, 1997) and the following non-statutory exemptions:


                   Places of worship exempt from taxation

                   Industrial land uses

                   Commercial Office land uses

                   Non-residential Farm Buildings

                   Lands designated as part of Kingston’s Community Improvement Area may be
                    exempted under the by-laws. This permissive exemption is also included in the
                    Impost Fee by-law (s. 12).

        Redevelopment - Redevelopment of land where the building or structure has been
         demolished within five years prior to building permit issuance.             If the reconstructed
         structure(s) exceeds the number of residential units and/or non-residential gross floor
         area of the previous building or structure, a credit will be provided against the DC
         payable, so that only the net increase in number of residential units or non-residential
         floor area is chargeable (s.11 & 12, and s.10, respectively)

        Phase-in of Fees – non-residential impost fees are phased in for industrial and
         commercial office uses over the term of the by-law (s. 5). In the event that a proposed
         use does not conform to the use described at the time of application for the phased-in
         rate, at any time within three years of occupancy, reduced fees must be repaid to the
         municipality.


        DC By-law Administration – The DC by-law is administered by the City Treasurer
         (s. 21).


        Impost Fee By-law Administration – The Impost by-law is administered by the City
         Treasurer.




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             3. ANTICIPATED DEVELOPMENT IN KINGSTON




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3.       ANTICIPATED DEVELOPMENT

3.1      Requirements of the Act

Appendix B provides the methodology for calculating a development charge as per the
Development Charges Act, 1997. Figure 3-1 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 3.5 (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 the anticipated development for which the City of Kingston will be required to provide
services for over a 10-year (mid 2009-mid 2019), and 20-year (mid 2009-mid 2029) time
horizon. The 20-year horizon also corresponds to the buildout period.


3.2      Basis of Population, Household and Non-Residential Gross
         Floor Area Forecast

In compiling the growth forecast for the City of Kingston, the following reports were consulted:


             City of Kingston Development Charge/Impost Fee Background Study, Consolidated
              Report, September 17, 2004, Watson & Associates Economists Ltd. (formerly C.N.
              Watson);
             City of Kingston Official Plan, Recommended Draft 2009;
             City of Kingston Information Report to Planning Committee # PC-08-083,
              September 18, 2008; and
             City of Kingston Information Report to Planning Committee # PC-08-092, November
              11, 2008.


In addition to reviewing the above-mentioned documents, the following key indicators were also
considered in generating the population, household and non-residential growth forecast:


             1996, 2001 and 2006 Census data;
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             historical residential building permits over the past 10-years;
             proposed residential units in the development approvals process by dwelling type
              and location;
             historical non-residential building permit values over the past 10 years;
             1996, 2001 and 2006 Census employment data; and
             vacant designated non-residential lands inventory.


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 City and describes the basis for the
forecast. The results of the growth forecast analysis are summarized in Table 3-1 and Schedule
1. As identified in Table 3-1 and Schedule 1, the population is anticipated to reach 124,988 by
2019 and 136,845 by 2029 (buildout), resulting in an increase of 10,025 and 21,882 respectively
over the forecast period.1


1.       Unit Mix (Appendix A – Schedules 2 through 7)


              The unit mix for the City was derived from historical development activity (as per
               Schedule 7, Appendix A) as well as discussions with staff, regarding anticipated
               development trends for the City.


              Based on the above indicators, the buildout growth forecast is based upon a unit
               mix of 52% low density (single family and semi-detached), 14% medium density
               (multiples except apartments) and 34% high density (apartments).



2.       Geographic Location, Appendix A – Schedule 2 and 6


              Schedule 2 summarizes the anticipated amount, type and location of development
               for Kingston by urban and rural area. Schedule 6 summarizes the potential housing
               supply in the development process and vacant designated residential lands. In

1
 The population figures used in the calculation of the 2009 Development Charge excludes the net
Census undercount (estimated at approximately 4%) and the institutional population.
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               accordance with available supply and anticipated demand, housing and population
               growth has been allocated to the following areas over the buildout forecast period:


               Kingston Urban Area– Annual demand for new housing within urban area of
               Kingston is anticipated to be approximately 610 units per year, or 95% of the total
               housing forecast.


               Rural Area – An increase of 680 housing units has been forecast for the rural area
               from 2009 to buildout.     Annual demand for new housing within this area is
               anticipated to be approximately 34 units per year, or 5% of the total housing
               forecast.




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                                                                                                                                         TABLE 3-1
                                                                                                                                     CITY OF KINGSTON
                                                                                                                  RESIDENTIAL GROWTH (URBAN AND RURAL) FORECAST SUMMARY

                                                                                                                                                                                                                          2
                                                                                                                Institutional                                                                              Households                                                     Person
                                                                                                                                  Total Population Net of
                                                                                                   1,2                      3                                                    4                     5                                                                               6
                                                       Year                     Total Population            Population            Institutional Population       Single Family             Multiples               Apartments              Other            Total     Per Unit (PPU)
                                                      Mid 1996                   112,605              5,250                107,355                    25,425             3,945           14,755             300                                              44,425                2.42
                                                      Mid 2001                   114,195              4,625                109,570                    26,820             4,470           14,935             410                                              46,635                2.35
                                                      Mid 2006                   117,207              4,500                112,707                    28,010             4,990           15,515             410                                              48,925                2.30
                                                      Mid 2009                   119,583              4,620                114,963                    29,169             5,121           15,744             410                                              50,443                2.28
                                                      Mid 2014                   124,315              4,820                119,495                    31,026             5,535           16,433             410                                              53,403                2.24
                                                      Mid 2019                   130,008              5,020                124,988                    32,865             6,008           17,511             410                                              56,793                2.20
                                                      Mid 2024                   136,027              5,280                130,747                    34,436             6,486           18,816             410                                              60,148                2.17
                                          Buildout (Mid 2029)                    142,425              5,580                136,845                    35,799             6,961           20,158             410                                              63,328                2.16
                                         Mid 1996 - Mid 2001                        1,590              -625                   2,215                    1,395               525               180            110                                               2,210
                                         Mid 2001 - Mid 2006                        3,012              -125                   3,137                    1,190               520               580               0                                              2,290
                                         Mid 2006 - Mid 2009                        2,376               120                   2,256                    1,159               131               229               0                                              1,518
                                         Mid 2009 - Mid 2014                        4,732               200                   4,532                    1,857               414               689               0                                              2,960
                                         Mid 2009 - Mid 2019                      10,425                400                  10,025                    3,696               887            1,767                0                                              6,350
                                         Mid 2009 - Mid 2024                      16,444                660                  15,784                    5,267             1,366            3,072                0                                              9,705
                             Mid 2009 - Buildout (Mid 2029)                       22,842                960                  21,882                    6,630             1,841             4,414               0                                             12,885
                          Source: Watson & Associates Economists Ltd., June 2009
                          1. Includes institutional population
                          2. Census population and housing figures may vary slightly due to rounding
                          3. 2006 base data and forecast based on TeraTrends, Population and Housing Forecast, Sept 2, 2008; 1996 and 2001 Institutional Population derived from Census data by Watson & Associates
                          4. Includes single family and semi-detached
                          5. Include townhouses and duplexes
                          6. Based on Net of Institutional Population
                          Note: Population forecast excludes the net Census undercount.



                                                                                                                                               FIGURE 3-2
                                                                                                                                       ANNUAL HOUSING FORECAST
                                                                                                                                             2009-BUILDOUT
                                                                                                                                        (URBAN AND RURAL AREA)
                                                1,000
                                                                                                                          896
                                                       900
                                                                                                    811
                                                       800
                                                                                                                                                                             710     710    710   710        710
                                                       700
                                       Housing Units




                                                                                629                                                         630    630    630    630   630                                          645       645   645   645   645   630    630    630
                                                       600                            567                          582                570
                                                                    524   525               512                                 500
                                                       500
                                                                                                          437
                                                              412
                                                       400

                                                       300

                                                       200

                                                       100

                                                        0




                                                                                                                                                         Years

                                                                                                  Historical             Low Density              Medium Density                 High Density                  Historical Average

                                 Source: Source: Historical housing activity (1998-2008) based on CMHC Completions data less Statistics Canada Demolitions (2002-2008).
                                   .

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3.       Planning Period


              Short, medium 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.    Roads, water and wastewater services
               utilize a longer planning period.


4.       Population in New Units (Appendix A - Schedules 2 through 5)


              The number of housing units to be constructed in Kingston during the short,
               medium and long term period is presented on Schedule 1 (an average of
               approximately 644 units per annum over the buildout time horizon). Figure 3-2
               illustrates the 20-year (buildout) housing forecast in comparison to building activity
               over the past 10 years.


              Population in new units are derived from Schedules 2 through 5, which incorporate
               historical development activity, anticipated units (see unit mix discussion), and
               1996, 2001 and 2006 Census data.

              Schedule 8 summarizes the PPU for the new low, medium and high density housing
               units by age and type of dwelling based on a 2006 custom Census data. The 20-
               year average PPU by dwelling type is as follows:

                Low-density: 2.86
                Medium-density: 2.19
                High-density: 1.61


              The calculated PPU for low and medium density dwelling units reflects a downward
               adjustment 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.




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5.         Existing Units and Population Change (Appendix A - Schedules 2 through 5)


               Existing households for mid 2009 are based on the 2006 Census households, plus
                estimated residential units constructed between mid 2006 and mid 2009 assuming
                a six month lag between construction and occupancy (see Schedule 3).


               The decline in average occupancy levels for existing housing units are calculated in
                Schedules 2 through 5, by aging the existing population over the forecast period.


6.         Employment (Appendix A, Schedule 10, 11, 12)


               The employment forecast is largely based on the activity rate method, which is
                defined as the number of jobs in the City divided by the number of residents1. Key
                employment sectors include primary, industrial, commercial/population related,
                institutional, and work at home, which are considered individually below.


               1996, 2001 and 2006 employment data (place of work) for the City is outlined in
                Schedule 10. 2006 employment is comprised of the following sectors:

                    135 primary (0.2%);
                    3,520 work at home employment (5.3%);
                    10,273 industrial (15.3%);
                    24,908 population related or commercial (37.2%); and
                    28,110 institutional (42.0%).


               This provides a total employment figure of 66,945 based on the 2006 Census.
                Additional details regarding historical employment trends by sub-sector are
                summarized in Schedule 12.




1
    Excluding institutional population.
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              Total employment for the City is anticipated to reach approximately 75,489 by mid-
               2019 and 82,074 by mid-2029 (buildout). This represents an employment increase
               of 6,515 for the 10-year period and 13,100 for the 20-year (buildout) period.


7.       Non-Residential Sq. Ft. Estimates (Gross Floor Area (GFA), Appendix A, Schedule 10)


              Square footage estimates were calculated in Schedule 10 based on the following
               employee density assumptions:
                    1,400 sq.ft per employee for industrial;
                    400 sq.ft per employee for commercial; and
                    700 sq.ft. per employee for institutional employment.


              The forecast incremental Gross Floor Area (GFA) increase for the City is 4,622,600
               sq. ft. over the 10-year projection period and 9,171,000 sq.ft. over the 20-year
               (buildout).


              The buildout forecast incremental GFA by sector is as follows:
                    Industrial 42.4%;
                    Commercial/population related 19.4%; and
                    Institutional 38.2%.




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              4. DEVELOPMENT CHARGE ELIGIBLE COSTS




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4.       DEVELOPMENT CHARGE ELIGIBLE COSTS

4.1      Introduction

This chapter outlines the basis for calculating development charge 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 Appendix B, 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, municipal 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.


4.2      Service Levels and Capital Costs for DC Calculation

This section evaluates the development-related capital requirements for all of the City services
(except Roads and Related service) over a ten year planning period. Each service component
is evaluated on two format sheets: the average historical ten year level of service calculation,
which “caps” the DC amounts; and the infrastructure cost calculation, which determines the
potential DC recoverable cost.


4.2.1     Fire Facilities, Vehicles and Staffing


No new fire stations are anticipated to be required during the next ten years. Consolidation of a
Fire Training Centre is the only facility requirement that has been identified for construction
during the next ten years.


A provision for new vehicle purchases has also been identified to improve service delivery over
the projection period.




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4.2.2     Police Facilities and Staffing


A new police headquarters facility has been constructed, and the carrying cost associated with
debentures for the oversized portion of the project will be recovered through future development
charges. Recovery of debt costs for this project from development charges is expected to
extend over several future development charge by-laws.


Forty-six new police officers are planned to be hired during the next ten years to service growth
within the community. New vehicles required in relation to the new officers have also been
included in the development charge calculation at an average cost of $38,000 per vehicle.


4.2.3 Major Indoor Recreation Facilities


In order to meet the recreation needs related to new development, the City anticipates that
additional indoor recreation facility space will need to be provided.          This is planned to be
achieved largely through the addition of a Leisure Aquatic Centre with associated community
facility space. The cost of the major new facility has been estimated at $25 million, a portion of
which will be financed with development charges. The facility is planned to be constructed in
2012.


The cost of future oversized capacity associated with the ice pad located in the new Invista
Centre will also be recovered through future development charges.


4.2.4 Parkland Development


The City has an inventory of approximately 1,070 acres of developed parkland and trails. The
City anticipates with the increase in population, that development of an additional 30 acres of
community parkland, 22.7 acres of neighbourhood parkland, as well as approximately $400,000
to be invested in development of trails will be required over the next ten years. The City
requires development to provide parkland dedication (or cash in lieu) under s.51 and s.53 of the
Planning Act. The parkland development capital program included in this background study



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includes expenditures to develop the dedicated parkland (including play structures, minor fields,
landscaping, lighting, park furniture, etc.).


4.2.5 Library Materials

Expenditures to add to the existing library collections are planned at an average annual amount
of approximately $275,000.


4.2.6 Transit Fleet


The acquisition of two new buses every other year for the next ten years will be necessary in
order to implement the recommendations of the City’s Transportation Master Plan.
Achievement of a specified transit modal split has been assumed in deriving the capital
improvements that will be required to the City’s road network in order to accommodate traffic
flows anticipated to be generated by new growth.


4.2.7 Social Housing

The provision of social housing within the City of Kingston is a new municipal service as a result
of recent Provincial restructuring of service provision. A provision has been included for the
addition of new social housing units within the City. In identifying the City’s average historical
level of service for this service, together with the legislated 10% reduction, it was determined
that approximately $600,000 of the social housing project cost could be considered growth
related for development charge calculation purposes.


4.2.8 Development Related Studies

The DCA permits the inclusion of studies undertaken to facilitate completion of the municipality’s
capital works program.            The City has made provision for the inclusion of the cost of
development charge background studies, updates to the Official Plan, and master planning
studies that may be required during the next ten year planning period. Master planning studies
for roads, water works and sewer services have been included in their respective DC or Impost
service calculations.



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4.3      Build-out (Roads and Related) Capital Costs for City DC
         Calculation


This section evaluates the development-related capital requirements for the City’s road network
over a build-out planning horizon.           The proposed roads capital program underlying the
development charge calculation is supported by a Transportation Master Plan (TMP)
undertaken by Dillon Consulting Limited in 2004, and recently updated by Aecom.


4.3.1 Roads


The roads capital program is presented on page 4-26 of this Chapter. As much as possible, the
methodology that was used in 2004 to determine the growth related cost of the roads program
has been retained in the calculation of the development charge for the purpose of the
preparation of this by-law update.


4.3.2 Public Works/Fleet Facilities


A new works/fleet maintenance and storage facility is planned for construction during the next
five years at a cost of approximately $28 million, a portion of which will be financed with
development charges.           This facility will provide capacity to service growth in the Kingston
community throughout the twenty year planning period.


4.3.3 Public Works Vehicles and Equipment


Provision has been made to add sufficient new rolling stock to the City’s works fleet in order to
maintain paved roads that have been upgraded, and to provide services related to anticipated
new growth. It is anticipated that consolidation of the existing fleet will continue to occur, and
this has been taken into account in determining the requirement for additional rolling stock
during the next twenty years.




Watson & Associates Economists Ltd.                      H:\Kingston\2009 Kingston DC Impost Study.docx
                                                                                                                                                                                                      4-5


                                                                                          SERVICE: PROTECTION

           CITY OF KINGSTON
           LEVEL OF SERVICE CALCULATION SHEET

           Sub-Service Category:         Fire Facilities
           Contact:                      Harold Tulk
           Unit of Measure:              Square Feet of Building Area

                                      Facility                                                                                                                                        Fac. Value
                                      Name                                  1999       2000      2001       2002       2003         2004      2005      2006      2007      2008        ($/s.f.)

           Central Division -Station #4 (Brock St.)                          16,600     16,600    16,600     16,600     16,600       16,600    16,600    16,600    16,600    16,600         200
           Central Division - Station #5 (171 Railway St.)                    3,600      3,600     3,600      3,600      3,600        3,600     3,600     3,600     3,600     3,600         200
           Central Division - Training Tower (171 Railway St.)                1,008      1,008     1,008      1,008      1,008        1,008     1,008     1,008     1,008     1,008          91
           Central Division - Storage Garage (171 Railway St.)                  200        200       200        200        200          200       200       200       200       200          36
           Central Division - Cement Building (171 Railway St.)                 200        200       200        200        200          200       200       200       200       200          61
           Central Division - Station #6 (262 Palace Road)                    5,000      5,000     5,000      5,000      5,000        5,000     5,000     5,000     5,000     5,000         200
           East Division - Station #1 (1640 Joyceville Road)                 10,000     10,000    10,000     10,000     10,000       10,000    10,000    10,000    10,000    10,000         200
           East Division - Station #2 (3505 Brewers Mills Road)               3,400      3,400     3,400      3,400      3,400        3,400     3,400     3,400     3,400     3,400         200
           East Division - Station #3 211 Gore Road)                          8,736      8,736     8,736      8,736      8,736        8,736     8,736     8,736     8,736     8,736         200
           East Division - Training Tower                                       620        620       620        620        620          620       620       620       620       620         185
           West Division -Station #7 (905 Woodbine Rd.)                      20,400     20,400    20,400     20,400     20,400       20,400    20,400    20,400    20,400    20,400         200
           West Division - Station #10 (127 Days Road)                        5,200      5,200     5,200      5,200      5,200        5,200     5,200     5,200     5,200     5,200         200
           West Division - Station #9 (2835 Hwy 38)                           8,120      8,120     8,120      8,120      8,120        8,120     8,120     8,120     8,120     8,120         200
           West Division - Elginburg Station (storage)                        5,200      5,200     5,200      5,200      5,200        5,200     5,200     5,200     5,200     5,200         200
           West Division - Station #8 (1485 Unity Road 3)                     9,800      9,800     9,800      9,800      9,800        9,800     9,800     9,800     9,800     9,800         200
           West Division - Storage & Classroom (1550 Centennial Dr.)            764        764                                                                                                0
           West Division - Training Tower                                     1,292      1,292     1,292                                                                                      0
           West Division - JC Storage (2709 Centennial Dr.)                   3,832      3,832     3,832      3,832         3,832                                                           135
           Emergency Control Centre - Headquarters (500 O'Connor S                                                          2,000     2,000     2,000     2,000     2,000     2,000         200




                                       Total                                103,972    103,972   103,208    101,916    103,916      100,084   100,084   100,084   100,084   100,084

           Population                                                       113,543    113,889   114,195    114,650    115,201      116,186   116,789   117,207   117,999   118,791
           Per Capita/Level of Service                                         0.92       0.91      0.90       0.89       0.90         0.86      0.86      0.85      0.85      0.84

           10 Year Average
           Quantity (sq.ft./capita)                                          0.8786
           Quality ($/sq.ft.)                                               $198.20
           Combined Quantity/Quality Level ($/capita)                   $    174.15

           DC Amount (before deductions)                                  10 Year
           Forecast Population                                                10,025
           $ per Capita                                                     $174.15
           Eligible Amount                                              $ 1,745,827

Watson & Associates Economists Ltd.                                                     Revision Date: 26/06/200912:10 AM                                                          Kingston DC Impost 2009
                                                                                                                                                                                                               4-6


                                                                                                   SERVICE: PROTECTION

                   CITY OF KINGSTON
                   LEVEL OF SERVICE CALCULATION SHEET

                   Sub-Service Category:         Fire Vehicles & Equipment
                   Contact:                      Harold Tulk
                   Unit of Measure:              Number of Equipped Vehicles

                                         Vehicle                                                                                                                                         Value
                                         Name                                    1999      2000        2001      2002       2003        2004      2005      2006      2007      2008    ($/veh.)
                   Central Division

                   Pumper                                                           3         3           3         3             3        3         3         3         3         3     475,000
                   Aerial platform                                                  2         2           2         2             2        2         2         2         2         2     900,000
                   Rescue Unit 9                                                    1         1           1         1             1        1         1         1         1         1     467,500
                   Telesquirt                                                       3         3           3         3             3        3         3         3         3         3     300,000
                   Marine Unit                                                      1         1           1         1             1        1         1         1         2         2      12,100

                   East Division

                   Pumper                                                           4         4           4         4             4        4         4         4         4         4     475,000
                   Tanker                                                           2         2           2         2             2        3         3         3         3         3     220,000
                   Rescue                                                           1         1           1         1             1        1         1         1         1         1     330,000
                   Telesquirt                                                       1         1           1         1             1        1         1         1         1         1     577,500

                   West Division

                   Pumper                                                           5         5           5         5             5        5         5         5         5         5     475,000
                   Tanker                                                           2         2           2         2             2        3         3         3         3         3     220,000
                   Rescue                                                           1         1           1         1             1        1         1         1         1         1     330,000
                   Telesquirt/ladder truck                                          1         1           1         1             1        1         1         1         1         1     577,500
                   Aerial                                                           1         1           1         1             1        1         1         1         1         1     600,000



                                             Total                                 28        28          28        28         28          30        30        30        31        31

                   Population                                                  113,543   113,889     114,195   114,650   115,201      116,186   116,789   117,207   117,999   118,791
                   Level of Service (per 1,000 pop'n)                           0.2466    0.2459      0.2452    0.2442    0.2431       0.2582    0.2569    0.2560    0.2627    0.2610

                   10 Year Average
                   Quantity (vehicles/per 1,000 pop'n)                      0.2520
                   Quality ($/vehicle)                                    $407,313
                   Combined Quantity/Quality Level ($/capita)              $102.63

                   DC Amount (before deductions)                         10 Year
                   Forecast Population                                       10,025
                   $ per Capita                                            $102.63
                   Eligible Amount                                      $1,028,848


Watson & Associates Economists Ltd.                                                           Revision Date: 26/06/200912:10 AM                                                             Kingston DC Impost 2009
                                                                                                                                                                                                          4-7


                                                                                                SERVICE: PROTECTION

       CITY OF KINGSTON
       LEVEL OF SERVICE CALCULATION SHEET

       Sub-Service Category:                     Fire Fighter Outfitting
       Contact:                                  Harold Tulk
       Unit of Measure:                          Number of Equipped Fire Fighters

                                          Item                                                                                                                                                 Value
                                         Name                                       1999        2000       2001       2002        2003      2004      2005      2006      2007      2008      ($/item)

       # of Fire Fighters - Full Time                                                  105          105        106        106        131       131       131       144       144       144        4,840
       # of Fire Fighters - Volunteers                                                 114          112        121        117        160       155       150       150       140       171        4,840




                                         Total                                         219          217        227        223        291       286       281       294       284       315


       Population                                                                   113,543     113,889    114,195    114,650     115,201   116,186   116,789   117,207   117,999   118,791
       Level of Service (per 1,000 pop'n)                                            1.9288      1.9054     1.9878     1.9451      2.5260    2.4616    2.4060    2.5084    2.4068    2.6517

       10 Year Average
       Quantity (equipped firefighters/per 1,000 pop'n)                             2.2728
       Quality ($/equipped firefighter)                                             $4,840
       Combined Quantity/Quality Level ($/capita)                                   $11.00

       DC Amount (before deductions)                                            10 Year
       Forecast Population                                                         10,025
       $ per Capita                                                               $11.00
       Eligible Amount                                                          $110,276




Watson & Associates Economists Ltd.                                                           Revision Date: 26/06/200912:10 AM                                                       Kingston DC Impost 2009
                                                                                                                                                                                                                      4-8


                                                                                    SERVICE: PROTECTION
                                                                     INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION


                                                                                                                               Less:                                    Less:           Potential DC Recoverable Cost
Prj.                  Increased Service Needs         Timing      Gross        Ineligible        Net          Benefit to        Grants, Subsidies and                 Other (e.g.    Total       Residential Non-Residential
No                          Attributable to           (Year)      Capital      re: Level        Capital        Existing          Other Contributions                 10% Statutory                 Share          Share
                                                                                                     1
                      Anticipated Development                      Cost       of Service        Cost         Development         Attributable to New    Subtotal      Deduction)                    64%            36%
                             2009 - 2019                         Estimate                                                           Development


           Fire Facility Space
           Fire Training Centre                        2010       5,500,000      3,115,049       2,384,951          238,495                              2,146,456              0    2,146,456    1,373,732         772,724


                                                                                                                                                                                     2,146,456    1,373,732         772,724



           Fire Vehicles & Equipment
           Provision for new fire equipment          2009-2013      250,000                        250,000                 0                               250,000              0     250,000       160,000          90,000
           Provision for new fire equipment          2014-2018      250,000                        250,000                 0                               250,000              0     250,000       160,000          90,000
                                                                                                                                                                                      500,000       320,000         180,000




           Total                                                  6,000,000      3,115,049       2,884,951          238,495                        0     2,646,456              0    2,646,456    1,693,732         952,724

       1
           Capped by level of service eligibility.




 Watson & Associates Economists Ltd.                                                         Revision Date: 26/06/200912:10 AM                                                                    Kingston DC Impost 2009
                                                                                                                                                                                                4-9


                                                                                        SERVICE: PROTECTION

              CITY OF KINGSTON
              LEVEL OF SERVICE CALCULATION SHEET

              Sub-Service Category: Police Facilities
              Contact :             Bob Napier
              Unit of Measure:      Square Feet of Building Area

                                      Facility                                                                                                                               Fac. Value
                                      Name                           1999        2000      2001       2002       2003      2004      2005      2006      2007      2008        ($/s.f.)

              Police Headquarters - 11 Queen St.                       50,000     50,000    50,000     50,000     50,000    50,000    50,000    50,000                             160
                                 - 700 Division St.                                                                                                      121,000   121,000         250




                                       Total                           50,000     50,000    50,000     50,000     50,000    50,000    50,000    50,000   121,000   121,000


              Population                                              113,543    113,889   114,195    114,650    115,201   116,186   116,789   117,207   117,999   118,791
              Per Capita/Level of Service                                0.44       0.44      0.44       0.44       0.43      0.43      0.43      0.43      1.03      1.02

              10 Year Average
              Quantity (sq.ft./capita)                                0.5516
              Quality ($/sq.ft.)                                     $250.00
              Combined Quantity/Quality Level ($/capita)             $137.91

              DC Amount (before deductions)                         10 Year
              Forecast Population                                       10,025
              $ per Capita                                            $137.91
              Eligible Amount                                      $1,382,562




Watson & Associates Economists Ltd.                                                 Revision Date: 26/06/200912:10 AM                                                        Kingston DC Impost 2009
                                                                                                                                                                                                     4-10


                                                                                          SERVICE: PROTECTION

                   CITY OF BARRIE
                   LEVEL OF SERVICE CALCULATION SHEET

                   Sub-Service Category:        Police Vehicles
                   Contact:                     Bob Napier
                   Unit of Measure:             Number of Equipped Vehicles

                                      Vehicle                                                                                                                                  Value
                                      Name                            1999      2000        2001       2002       2003        2004      2005      2006      2007      2008    ($/veh.)
                   Police Vehicles                                      69        73          77         78         80          83        84        87        90        90       38,000




                                       Total                            69        73          77         78         80          83        84        87        90        90


                   Population                                      113,543    113,889    114,195    114,650    115,201      116,186   116,789   117,207   117,999   118,791
                   Level of Service (per 1,000 pop'n)               0.6114     0.6389     0.6707     0.6806     0.6940       0.7128    0.7173    0.7434    0.7587    0.7576

                   10 Year Average
                   Quantity (vehicles/per 1,000 pop'n)             0.6985
                   Quality ($/vehicle)                            $38,000
                   Combined Quantity/Quality Level ($/capita)      $26.54

                   DC Amount (before deductions)                10 Year
                   Forecast Population                              10,025
                   $ per Capita                                    $26.54
                   Eligible Amount                               $266,109




Watson & Associates Economists Ltd.                                                     Revision Date: 26/06/200912:10 AM                                                          Kingston DC Impost 2009
                                                                                                                                                                                                             4-11


                                                                                                SERVICE: PROTECTION

                    CITY OF KINGSTON
                    LEVEL OF SERVICE CALCULATION SHEET

                    Sub-Service Category:           Police Officer Outfitting
                    Contact :                       Bob Napier
                    Unit Measure:                   Number of Equipped Police Officers

                                           Item                                                                                                                                        Value
                                          Name                              1999         2000      2001      2002      2003      2004      2005      2006      2007      2008         ($/item)

                    # Police Officers                                           145         152       160        163       167      173       175       182       187           188      6,000




                                            Total                               145         152       160        163       167      173       175       182       187           188


                    Population                                              113,543      113,889   114,195   114,650   115,201   116,186   116,789   117,207   117,999     118,791
                    Level of Service (per 1,000 pop'n)                         1.28         1.33      1.40      1.42      1.45      1.49      1.50      1.55      1.58        1.58

                    10 Year Average
                    Quantity (equipped firefighters/per 1,000 pop'n)        1.4592
                    Quality ($/equipped police officer)                     $6,000
                    Combined Quantity/Quality Level ($/capita)               $8.76

                    DC Amount (before deductions)                         10 Year
                    Forecast Population                                      10,025
                    $ per Capita                                             $8.76
                    Eligible Amount                                        $87,769




Watson & Associates Economists Ltd.                                                         Revision Date: 26/06/200912:10 AM                                                              Kingston DC Impost 2009
                                                                                                                                                                                                                             4-12


                                                                                            SERVICE: PROTECTION
                                                                             INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION


                                                                                                                                       Less:                                    Less:           Potential DC Recoverable Cost
Prj.                  Increased Service Needs                 Timing      Gross        Ineligible        Net          Benefit to        Grants, Subsidies and                 Other (e.g.    Total       Residential Non-Residential
No                          Attributable to                   (Year)      Capital      re: Level        Capital        Existing          Other Contributions                 10% Statutory                 Share          Share
                                                                                                             1
                      Anticipated Development                              Cost       of Service        Cost         Development         Attributable to New    Subtotal      Deduction)                    64%            36%
                             2009 - 2019                                 Estimate                                                           Development


           Police Facility Space
           New Police Headquarters - 700 Division St.        pre-2009     1,100,000                      1,100,000                 0                             1,100,000              0    1,100,000      704,000         396,000
            - share of project oversized for future growth


                                                                                                                                                                                             1,100,000      704,000         396,000


           Police Vehicles & Outfitting
           Police Officer Outfitting                         2009-2013      156,000         33,123         122,877                 0                               122,877              0     122,877        78,641          44,236
           Police Officer Outfitting                         2014-2018      120,000         25,479          94,521                 0                                94,521              0      94,521        60,493          34,028
           Police Vehicles & Equipment                       2009-2013      304,000         64,547         239,453                 0                               239,453              0     239,453       153,250          86,203
           Police Vehicles & Equipment                       2014-2018      228,000         48,410         179,590                 0                               179,590              0     179,590       114,937          64,652


                                                                                                                                                                                              636,441       407,322         229,119




           Total                                                          1,908,000       171,559        1,736,441                 0                       0     1,736,441              0    1,736,441    1,111,322         625,119

       1
           Capped by level of service eligibility.




 Watson & Associates Economists Ltd.                                                                 Revision Date: 26/06/200912:10 AM                                                                    Kingston DC Impost 2009
                                                                                                                                                                                                    4-13


                                                                                      SERVICE: PARKS AND RECREATION

            CITY OF KINGSTON
            LEVEL OF SERVICE CALCULATION SHEET

            Sub-Service Category:     Major Indoor Recreation Facilities
            Contact:                  Lanie Hurdle
            Unit Measure:             Square Feet of Building Area

                                                                                                                                                                                  Fac. Value
                                Facility Name                              1999       2000      2001       2002       2003      2004      2005      2006      2007      2008       ($/sq.ft.)

            Kingston Memorial Centre                                         50,440    50,440    50,440     50,440     50,440    50,440    50,440    50,440    50,440    50,440          175
            Centre 70 Arena                                                  26,550    26,550    26,550     26,550     26,550    26,550    26,550    26,550    26,550    26,550          160
            Cataraqui Arena                                                  80,994    80,994    80,994     80,994     80,994    80,994    80,994    80,994    80,994    80,994          160
            Harold Harvey Arena                                              23,616    23,616    23,616     23,616     23,616    23,616    23,616    23,616    23,616    23,616          125
            Wally Elmer                                                      20,660    20,660    20,660     20,660     20,660    20,660    20,660    20,660    20,660    20,660          125
            Portsmouth Olympic Harbour                                       18,937    18,937    18,937     18,937     18,937    18,937    18,937    18,937    18,937    18,937          150
            Artillery Park Indoor Pool                                       13,875    13,875    13,875     13,875     13,875    13,875    13,875    13,875    13,875    13,875          175
            Woodbine Facility                                                 4,500     4,500     4,500      4,500      4,500     4,500     4,500     4,500     4,500     4,500          100
            Meadow Crest Community Centre                                     3,229     3,229     3,229      3,229      3,229     3,229     3,229     3,229     3,229     3,229          100
            Madoma Community Centre                                           4,000     4,000     4,000      4,000      4,000     4,000     4,000     4,000     4,000     4,000          100
            Invista Centre                                                                                                                                              150,000          212
            K-Rock Centre (Ice pad only) - estimate                                                                                                                      25,000          160




                                      Total                                 246,801   246,801   246,801    246,801    246,801   246,801   246,801   246,801   246,801   421,801

            Population                                                      113,543   113,889   114,195    114,650    115,201   116,186   116,789   117,207   117,999   118,791
            Per Capita Level of Service                                        2.17      2.17      2.16       2.15       2.14      2.12      2.11      2.11      2.09      3.55

            10 Year Average
            Quantity (sq.ft./capita)                                        2.2782
            Quality ($/sq.ft.)                                             $174.99
            Combined Quantity/Quality Level ($/capita)                     $398.66

                        DC Amount (before deductions)                   10 Year
            Forecast Population                                             10,025
            $ per Capita                                                  $398.66
            Eligible Amount                                            $3,996,599




Watson & Associates Economists Ltd.                                                      Revision Date: 26/06/200912:10 AM                                                        Kingston DC Impost 2009
                                                                                                                                                                                                              4-14


                                                                                      SERVICE: PARKS AND RECREATION

                   CITY OF KINGSTON
                   LEVEL OF SERVICE CALCULATION SHEET

                   Sub-Service Category:                           Parkland Development
                   Contact:                                        Lanie Hurdle
                   Unit of Measure:                                Acres of Developed Parkland

                                                                                                                                                                                             Value
                                      Park Classification                      1999         2000     2001      2002         2003          2004      2005      2006      2007      2008      ($/acre)

                   Community Park/Special Facility                                413.00    428.00    428.00    429.00       429.00        536.19    536.19    552.54    603.54    607.84    190,000
                   Neighbourhood Parks                                            427.00    430.00    431.00    431.00       433.00        422.57    423.50    424.62    424.62    424.62    100,000
                   Linear Recreation space (Trails and Pathways)                                                                            13.24     13.24     38.04     38.04     38.04     12,500

                                             Total                                840.00    858.00    859.00    860.00       862.00        972.00    972.93   1015.20   1066.20   1070.50


                   Population                                                    113,543   113,889   114,195   114,650      115,201       116,186   116,789   117,207   117,999   118,791
                   Level of Service (per 1,000 pop'n)                               7.40      7.53      7.52      7.50         7.48          8.37      8.33      8.66      9.04      9.01

                   10 Year Average                                                                                                    .
                   Quantity (acres/per 1,000 pop'n)                                 8.08
                   Quality ($/acre)                                            $147,994
                   Combined Quantity/Quality Level ($/capita)                 $1,196.43

                                DC Amount (before deductions)                 10 Year
                   Forecast Population                                            10,025
                   $ per capita                                               $1,196.43
                   Eligible Amount                                          $11,994,164




Watson & Associates Economists Ltd.                                                     Revision Date: 26/06/200912:10 AM                                                                   Kingston DC Impost 2009
                                                                                                                                                                                                                   4-15


                                                                                  SERVICE: PARKS AND RECREATION
                                                                        INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION

                                                                                                                          Less:                                  Less:              Potential DC Recoverable Cost
Prj.                Increased Service Needs             Timing      Gross       Ineligible      Net           Benefit to Grants, Subsidies and                 Other (e.g.      Total         Residential Non-Residential
No                        Attributable to               (Year)      Capital      re: Level     Capital         Existing   Other Contributions                 10% Statutory                     Share          Share
                    Anticipated Development                          Cost       of Service     Cost 1        Development Attributable to New     Subtotal      Deduction)                        95%            5%
                           2009 - 2019                             Estimate                                                  Development
       Facilities
       Leisure Aquatic Centre and Facility Space         2012      25,000,000   21,789,237       3,210,763              0                         3,210,763        321,076      2,889,686       2,745,202          144,484
       Invista Centre (Ice Pad) - oversized capacity   pre-2009     2,420,000                    2,420,000              0                         2,420,000        242,000      2,178,000       2,069,100          108,900



                                                                                                                                                                                5,067,686       4,814,302          253,384


       Parkland Development
       New Parks Development                           2009-2013    4,200,000                    4,200,000              0                         4,200,000        420,000      3,780,000       3,591,000          189,000
       New Parks Development                           2014-2018    4,200,000                    4,200,000              0                         4,200,000        420,000      3,780,000       3,591,000          189,000


                                                                                                                                                                                7,560,000       7,182,000          378,000




       Total                                                       35,820,000   21,789,237      14,030,763              0                   0    14,030,763       1,403,076    12,627,686      11,996,302          631,384

   1
       Capped by level of service eligibility.




  Watson & Associates Economists Ltd.                                                        Revision Date: 22/09/20091:42 PM                                             Kingston DC Impost 2009 - for consolidated.xlsx
                                                                                                                                                                                                          4-16


                                                                                                SERVICE: LIBRARIES

           CITY OF KINGSTON
           LEVEL OF SERVICE CALCULATION SHEET

           Sub-Service Category:               Library Facilities
           Contact :                           Deborah Defoe
           Unit of Measure:                    Square Feet of Building Area

                                         Facility                                                                                                                                          Fac. Value
                                         Name                                       1999    2000      2001       2002       2003         2004      2005      2006      2007      2008        ($/s.f.)

           Pittsburgh Library - 80 Gore Rd                                         4,000      4,000     4,000      4,000         4,000     4,000     4,000     4,000     4,000     4,000         220
           Central Library - 130 Johnson St.                                      62,000     62,000    62,000     62,000        62,000    62,000    62,000    62,000    62,000    62,000         160
           Calvin Park Library - 88 Wright Cres.                                  10,500     10,500    10,500     10,500        10,500    10,500    10,500    10,500    10,500    10,500         128
           Kingscourt Library - 115 Kirkpatrick St.                                3,150      3,150     3,150      3,150         3,150     3,150     3,150     3,150     3,150     3,150         137
           Isabel Turner Branch Library - Cataraqui Town Centre                   30,000     30,000    30,000     30,000        30,000    30,000    30,000    30,000    30,000    30,000         161




                                          Total                                  109,650    109,650   109,650    109,650    109,650      109,650   109,650   109,650   109,650   109,650


           Population                                                            113,543    113,889   114,195    114,650    115,201      116,186   116,789   117,207   117,999   118,791
           Per Capita Level of Service                                              0.97       0.96      0.96       0.96       0.95         0.94      0.94      0.94      0.93      0.92

           10 Year Average
           Quantity (sq.ft./capita)                                              0.9467
           Quality ($/sq.ft.)                                                   $158.59
           Combined Quantity/Quality Level ($/capita)                           $150.14

           DC Amount (before deductions)                                          10 Year
           Forecast Population                                                     10,025
           $ per Capita                                                          $150.14
           Eligible Amount                                                    $1,505,131




Watson & Associates Economists Ltd.                                                         Revision Date: 26/06/200912:10 AM                                                           Kingston DC Impost 2009
                                                                                                                                                                                                       4-17


                                                                                                SERVICE: LIBRARIES

               CITY OF KINGSTON
               LEVEL OF SERVICE CALCULATION SHEET

               Sub-Service Category:     Library Collections
               Contact :                 Deborah Defoe
               Unit Measure:             Items of Collection Material

                                       Item                                                                                                                                          Value
                                      Name                                1999        2000        2001       2002       2003      2004      2005      2006      2007      2008      ($/item)

               Book Collection                                             369,876    378,839     387,803    396,767    405,616   535,579   545,623   543,963   546,900   563,958          45
               Reference Materials                                          16,082     16,471      16,861     17,251     17,635    16,172    15,232    14,800    14,068    10,206         100
               Videos                                                        8,041      8,236       8,431      8,625      9,259     8,000     7,000     4,000     2,000       500          45
               CD's                                                          3,216      4,228       4,637      5,606      6,172     7,506     8,925     7,890     7,021     6,989          40
               Audio Tapes                                                   4,824      4,008       3,794      3,019      2,204                                                            40
               DVD's                                                                                                                1,000     2,500     3,095     5,465     7,694          18




                                       Total                               402,039    411,782     421,526    431,268    440,886   568,257   579,280   573,748   575,454   589,347         288


               Population                                                  113,543    113,889     114,195    114,650    115,201   116,186   116,789   117,207   117,999   118,791
               Per Capita Level of Service                                    3.54       3.62        3.69       3.76       3.83      4.89      4.96      4.90      4.88      4.96

               10 Year Average
               Quantity (Items/capita)                                     4.3021
               Quality ($/Item)                                            $45.54
               Combined Quantity/Quality Level ($/capita)                 $195.92

                         DC Amount (before deductions)                   10 Year
               Forecast Population                                           10,025
               $ per Capita                                                $195.92
               Eligible Amount                                          $1,964,086




Watson & Associates Economists Ltd.                                                          Revision Date: 26/06/200912:10 AM                                                       Kingston DC Impost 2009
                                                                                                                                                                                                     4-18


                                                                           SERVICE: LIBRARIES
                                                           INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION


                                                                                                                  Less:                                 Less:            Potential DC Recoverable Cost
Prj.                Increased Service Needs    Timing      Gross        Ineligible         Net        Benefit to Grants, Subsidies and                Other (e.g.    Total       Residential Non-Residential
No                        Attributable to      (Year)      Capital      re: Level        Capital       Existing   Other Contributions                10% Statutory                  Share          Share
                    Anticipated Development                 Cost       of Service         Cost       Development Attributable to New     Subtotal     Deduction)                     95%            5%
                           2009 - 2019                    Estimate                                                   Development



       Materials
       Additional Library Materials           2009-2013    1,375,000                 0   1,375,000             0                         1,375,000         137,500   1,237,500    1,175,625           61,875
       Additional Library Materials           2014-2018    1,375,000                 0   1,375,000             0                         1,375,000         137,500   1,237,500    1,175,625           61,875


                                                                                                                                                                     2,475,000    2,351,250          123,750




       Total                                               2,750,000                 0   2,750,000             0                     0   2,750,000         275,000   2,475,000    2,351,250          123,750




 Watson & Associates Economists Ltd.                                             Revision Date: 26/06/200912:10 AM                                                                 Kingston DC Impost 2009
                                                                                                                                                                                                        4-19


                                                                                              SERVICE: TRANSIT

                    CITY OF KINGSTON
                    LEVEL OF SERVICE CALCULATION SHEET

                    Sub-Service Category: Transit Facilities
                    Contact :             Sheila Kidd
                    Unit Measure:         Square Feet of Building Area

                                        Facility                                                                                                                                Fac. Value
                                        Name                             1999      2000       2001       2002       2003      2004      2005      2006      2007      2008        ($/s.f.)

                    Transit Garage                                         7,500     7,500      7,500      7,500      7,500     7,500     7,500     7,500     7,500     7,500         150




                                         Total                             7,500     7,500      7,500      7,500      7,500     7,500     7,500     7,500     7,500     7,500


                    Population                                           113,543   113,889    114,195    114,650   115,201    116,186   116,789   117,207   117,999   118,791
                    Per Capita/Level of Service                          0.0661    0.0659     0.0657     0.0654    0.0651     0.0646    0.0642    0.0640    0.0636    0.0631

                    10 Year Average
                    Quantity (sq.ft./capita)                              0.0648
                    Quality ($/sq.ft.)                                   $150.00
                    Combined Quantity/Quality Level ($/capita)             $9.71

                    DC Amount (before deductions)                    10 Year
                    Forecast Population                                 10,025
                    $ per Capita                                         $9.71
                    Eligible Amount                                   $97,377




Watson & Associates Economists Ltd.                                                       Revision Date: 26/06/200912:10 AM                                                           Kingston DC Impost 2009
                                                                                                                                                                                                                     4-20


                                                                                                  SERVICE: TRANSIT

                CITY OF KINGSTON
                LEVEL OF SERVICE CALCULATION SHEET

                Sub-Service Category:           Transit and KAB Vehicles
                Contact :                       Sheila Kidd
                Unit Measure:                   Number of Buses

                                      Vehicle                                                                                                                                                     Value
                                      Name                             1999          2000        2001        2002        2003        2004        2005        2006        2007        2008        ($/veh.)

                Buses                                                          35           35          35          35          37          39          41          44          46          48    535,000
                7-Passenger Mini Vans                                           3            3           3           3           3           3           3           3           3           3    210,000



                Kingston Access Buses                                          19           19          19          20          19          20          20          21          21          21    107,690




                                       Total                                   57           57          57          58          59          62          64          68          70          72


                Population                                                 113,543   113,889     114,195     114,650     115,201     116,186     116,789     117,207     117,999     118,791
                Level of Service (per 1,000 pop'n)                          0.5020    0.5005      0.4991      0.5059      0.5121      0.5353      0.5514      0.5768      0.5915      0.6061

                10 Year Average
                Quantity (vehicles/per 1,000 pop'n)                     0.5381
                Quality ($/vehicle)                                   $396,826
                Combined Quantity/Quality Level ($/capita)             $213.53

                DC Amount (before deductions)                        10 Year
                Forecast Population                                      10,025
                $ per Capita                                           $213.53
                Eligible Amount                                     $2,140,599




Watson & Associates Economists Ltd.                                                          Revision Date: 26/06/200912:10 AM                                                                     Kingston DC Impost 2009
                                                                                                                                                                                                           4-21


                                                                                               SERVICE: TRANSIT

                CITY OF KINGSTON
                LEVEL OF SERVICE CALCULATION SHEET

                Sub-Service Category:            Transit Shelters
                Contact :                        Sheila Kidd
                Unit Measure:                    Number of Shelters

                                      Facility                                                                                                                                          Value
                                      Name                             1999        2000        2001        2002        2003        2004        2005      2006      2007      2008      ($/unit)

                Transit Shelters                                              46          56          65          74          83          92      101       111       120       129        5,250




                                       Total                                  46          56          65          74          83          92      101       111       120       129


                Population                                              113,543    113,889     114,195     114,650     115,201     116,186     116,789   117,207   117,999   118,791
                Level of Service (per 1,000 pop'n)                         0.41       0.49        0.57        0.64        0.72        0.79        0.87      0.94      1.02      1.09

                10 Year Average
                Quantity (shelters/per 1,000 pop'n)                     0.7537
                Quality ($/shelter)                                     $5,250
                Combined Quantity/Quality Level ($/capita)               $3.96

                DC Amount (before deductions)                         10 Year
                Forecast Population                                      10,025
                $ per Capita                                              $3.96
                Eligible Amount                                        $39,668




Watson & Associates Economists Ltd.                                                        Revision Date: 26/06/200912:10 AM                                                             Kingston DC Impost 2009
                                                                                                                                                                                                                   4-22


                                                                                            SERVICE: TRANSIT
                                                                            INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION


                                                                                                                               Less:                                  Less:            Potential DC Recoverable Cost
Prj.            Increased Service Needs               Timing      Gross        Ineligible        Net          Benefit to       Grants, Subsidies and                Other (e.g.    Total       Residential   Non-Residential
No                    Attributable to                 (Year)      Capital       re: Level       Capital        Existing         Other Contributions                10% Statutory                  Share          Share
                Anticipated Development                            Cost        of Service       Cost 1       Development         Attributable to New   Subtotal     Deduction)                     61%            39%
                       2009 - 2019                               Estimate                                                           Development



           Transit Facilities
           Downtown Terminal                           2012        1,200,000        868,320        331,680         82,920                                248,760         24,876     223,884        136,569            87,315
           West End Terminal                           2010          575,000        416,070        158,930                 0                             158,930         15,893     143,037         87,253            55,785


                                                                                                                                                                                    366,921        223,822           143,099


           Transit Buses
           New Transit Buses                         2009-2013     2,000,000      1,447,199        552,801                 0                             552,801         55,280     497,521        303,488           194,033
           New Transit Buses                         2014-2018     3,000,000      2,170,799        829,201                 0                             829,201         82,920     746,281        455,231           291,050
           Transit Vans                              2009-2013       630,000        455,868        174,132                 0                             174,132         17,413     156,719         95,599            61,120
           Transit Vans                              2014-2018       420,000        303,912        116,088                 0                             116,088         11,609     104,479         63,732            40,747


           KAB Vehicles
           New Bus                                     2010          107,690         77,924         29,766                 0                              29,766          2,977      26,789         16,341            10,448
           New Bus                                     2015          107,690         77,924         29,766                 0                              29,766          2,977      26,789         16,341            10,448


                                                                                                                                                                                   1,558,578       950,733           607,845
           Transit Shelters
           New Shelters                              2009-2013       100,000         72,360         27,640                 0                              27,640          2,764      24,876         15,174             9,702
           New Shelters                              2014-2018       100,000         72,360         27,640                 0                              27,640          2,764      24,876         15,174             9,702
                                                                                                                                                                                     49,752         30,349            19,403



           Total                                                   8,240,380      5,962,736      2,277,644         82,920                          0   2,194,724        219,472    1,975,252     1,204,903           770,348

       1
           Capped by level of service eligibility.




       Watson & Associates Economists Ltd.                                                    Revision Date: 26/06/200912:10 AM                                                                 Kingston DC Impost 2009
                                                                                                                                                                                                       4-23


                                                                                           SERVICE: SOCIAL HOUSING

               CITY OF KINGSTON
               LEVEL OF SERVICE CALCULATION SHEET

               Sub-Service Category:           Social Housing
               Contact :                       Jim DeHoop
               Unit Measure:                   Number of Housing Units

                                                                                                                                                                                     Value1
                                                                         1999       2000        2001       2002        2003      2004      2005      2006      2007      2008      ($ per unit)

               Units of Housing Inventory                                   2,181     2,181        2,181      2,181      2,181     2,181     2,181     2,181     2,181     2,181       35,000




                                       Total                                2,181     2,181        2,181      2,181      2,181     2,181     2,181     2,181     2,181     2,181


               Population                                                 113,543   113,889     114,195     114,650    115,201   116,186   116,789   117,207   117,999   118,791
               Per Capita Level of Service                                0.0192    0.0192      0.0191      0.0190     0.0189    0.0188    0.0187    0.0186    0.0185    0.0184

               10 Year Average
               Quantity (units/capita)                                     0.0187
               Quality ($/unit)                                           $35,000
               Combined Quantity/Quality Level ($/capita)                    $654

                         DC Amount (before deductions)                10 Year
               Forecast Population                                        10,025
               $ per Capita                                                 $654
               Eligible Amount                                      $ 6,558,999
               1
                 Net Municipal Cost per new unit.




Watson & Associates Economists Ltd.                                                        Revision Date: 26/06/200912:10 AM                                                         Kingston DC Impost 2009
                                                                                                                                                                                                       4-24


                                                                        SERVICE: SOCIAL HOUSING
                                                           INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION


                                                                                                               Less:                                  Less:             Potential DC Recoverable Cost
Prj.               Increased Service Needs     Timing      Gross        Ineligible      Net         Benefit to Grants, Subsidies and                Other (e.g.      Total       Residential Non-Residential
No                       Attributable to       (Year)      Capital      re: Level      Capital       Existing   Other Contributions                10% Statutory                   Share          Share
                   Anticipated Development                  Cost       of Service       Cost       Development Attributable to New     Subtotal     Deduction)                      95%            5%
                          2009 - 2019                     Estimate                                                 Development




       Provision for New Housing Project(s)   2010-2019    6,600,000         41,001    6,558,999      5,903,100                          655,900          65,590      590,310        560,794            29,515




       Total                                               6,600,000         41,001    6,558,999      5,903,100                   0      655,900          65,590      590,310        560,794            29,515




 Watson & Associates Economists Ltd.                                             Revision Date: 22/09/20091:40 PM                                             Kingston DC Impost 2009 - for consolidated.xlsx
                                                                                                                                                                                                                     4-25


                                                                                         SERVICE: ADMINISTRATION
                                                                            INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION


                                                                                                                                 Less:                                 Less:          Potential DC Recoverable Cost
   Prj.               Increased Service Needs              Timing         Gross        Ineligible        Net         Benefit to Grants, Subsidies and                Other (e.g.   Total      Residential Non-Residential
   No                       Attributable to                (Year)         Capital       re: Level       Capital       Existing   Other Contributions                  Statutory                  Share          Share
                      Anticipated Development                              Cost        of Service        Cost       Development   Attributable to New   Subtotal     Deduction)                  70%            30%
                             2009 - 2019                                 Estimate                                                    Development



              Development Charge Study Updates          2013 & 2018          300,000                     300,000                                          300,000                  300,000        210,000         90,000
              Official Plan Consolidation                   2009             120,000                     120,000         60,000                             60,000         6,000    54,000         37,800         16,200
              Official Plan Five Year Review            2013 & 2018          200,000                     200,000        100,000                           100,000         10,000    90,000         63,000         27,000
              Population Model Updates                  2012 & 2017           70,000                      70,000         35,000                             35,000         3,500    31,500         22,050          9,450
              Commercial Land Use Inventories           2012 & 2017          100,000                     100,000         50,000                             50,000                  50,000         35,000         15,000
              Natural Heritage Study Updates            2011 & 2016          100,000                     100,000         50,000                             50,000         5,000    45,000         31,500         13,500
              Urban Growth Strategy Updates             2012 & 2017          200,000                     200,000        100,000                           100,000                  100,000         70,000         30,000




              Total                                                        1,090,000                0   1,090,000       395,000                           695,000         24,500   670,500        469,350        201,150

          1
              Excludes growth-related studies for roads, water and wastewater, which are included with the service calculation.




Watson & Associates Economists Ltd.                                                                 Revision Date: 26/06/200912:10 AM                                                              Kingston DC Impost 2009
                                                                                                           SERVICE: ROADS AND RELATED                                                                                                                                      4-26
                                                                                                INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION

                                                                                                                                                                                                                       Potential DC Recoverable Cost
                 Prj.                         Increased Service Needs                            Timing         Gross                     2
                                                                                                                                   Grants or           Post       Adjustment re:         Benefit to            Benefiting         Residential   Non-Residential
                 No                                 Attributable to                              (Year)         Capital       Alternative Sources Planning Period Construction            Existing          New Development         Share            Share
                                              Anticipated Development                                            Cost             of Financing       Capacity       Standard1          Development
                                                                                                                                                                                                    1
                                                                                                                                                                                                                 (Net)               63%              37%
                                                     2009 - 2029                                               Estimate
                        John Counter Blvd. widening from 2 to 4 lanes - Princess to Division
                  1      - Division to Leroy Grant                                                2013            8,200,000                                                178,000            4,011,000            4,011,000          2,526,930         1,484,070
                  2      - Leroy Grant to Sir John A.                                             2014            7,000,000                                                210,000            3,395,000            3,395,000          2,138,850         1,256,150
                  3      - Pre-loading, Berm construction, Portsmouth realignment                 2015          12,900,000                                                 105,000            6,397,500            6,397,500          4,030,425         2,367,075
                  4      - Sir John A to Indian Rd                                                2016          10,200,000                                                 148,000            5,026,000            5,026,000          3,166,380         1,859,620
                  5      - Grade Separation and Approaches                                        2017          21,700,000                                                2,079,000           9,810,500            9,810,500          6,180,615         3,629,885
                        Centennial Drive - Gardiners to Princess
                  6      - 2 lane extension Cataraqui Woods to Fortune Cres.                      2010             876,300                                                 414,000               36,984              425,316            267,949           157,367
                  7      - 2 lane ext. Fortune Cres. to 520m east of Gardiners Rd.             2012-2013          3,022,600                                                148,000                      0          2,874,600          1,810,998         1,063,602
                  8      - Gardiners Rd. to Princess St. - from 2 to 4 lanes                   2021-2023          9,022,100                                                                             0          9,022,100          5,683,923         3,338,177
                  9     Centennial Drive widening from 2 to 4 lanes
                         - 4 lanes Princess St. to Bath Road & CN Overpass                     2026-2027          6,739,000                                                234,000              520,400            5,984,600          3,770,298         2,214,302
                 10 3rd Crossing new construction of a 2 lane bridge                           2015-2018        85,000,000                                              10,700,000           37,150,000           37,150,000         23,404,500        13,745,500
                 11 Wellington Street new construction as a 2 lane road                        2017-2018        21,040,000                                                 419,000            4,124,200           16,496,800         10,392,984         6,103,816
                         - Bay St. to Montreal St.
                 12 Division St. widening from 4 to 6 lanes                                    2024-2026        12,347,000                                                1,152,000                     0         11,195,000          7,052,850         4,142,150
                         - John Counter Blvd. to Hwy. 401
                        Wellington St. Mid Block Arterial new construction of a 2 lane road
                 13      - planning and land purchase                                          2011-2013          4,500,000                                                                     900,000            3,600,000          2,268,000         1,332,000
                 14      - Montreal St. to John Counter Blvd.                                  2015-2016          5,949,000                                                312,000            1,127,400            4,509,600          2,841,048         1,668,552
                 15 Hwy 15 intersection/capacity improvements                                    various          1,596,830                                                                      79,842            1,516,989            955,703           561,286
                         - Hwy. 2 to Hwy. 401
                 16 Gardiners Road road widening from 4 to 6 lanes                             2027-2028          4,865,000                                                284,000              458,100            4,122,900          2,597,427         1,525,473
                         - Centennial Dr. to North Ramp of Hwy. 401
                 17 City wide intersection/corridor improvements                                 various          2,700,000                                                                     135,000            2,565,000          1,615,950           949,050
                        Cataraqui Woods new construction of a 2 lane road
                 18      - Sydenham Rd. to Centennial                                          2012-2013          3,234,000                                                325,000                      0          2,909,000          1,832,670         1,076,330
                 19 Cataraqui West new construction of a 2 lane road
                         - Bayridge to Princess                                                   2012            5,534,000                                                543,000                      0          4,991,000          3,144,330         1,846,670
                 20 Leroy Grant - construction of a 2 lane road                                2020-2021          6,069,000                                                140,000                      0          5,929,000          3,735,270         2,193,730
                         - John Counter Blvd. to Concession St.
                 21 Days Road to align Gardiners Rd. (incl. 4 to 2 lane taper)                 2022-2023          1,998,000                                                  40,500             489,375            1,468,125            924,919           543,206
                 22 John Counter Blvd. - from 2 to 4 lanes                                     2019-2020          1,218,000                                                  27,000                                1,191,000            750,330           440,670
                         - Midblock to Division
                 23 Princess Street Traffic Operations                                         2009-2017          2,000,000                                                                     100,000            1,900,000          1,197,000           703,000
                 24 Bayridge Drive new construction of 2 lane road
                         - Sierra Ave. to Creekford Road                                          2014            2,065,000                                                206,300                      0          1,858,700          1,170,981           687,719
                 25 Transportation Master Plans                                                2012 & 2017         200,000                                                                              0            200,000            126,000            74,000



                        Provision for Anticipated Grants                                                                             42,500,000                                            (21,250,000)          (21,250,000)       (13,387,500)       (7,862,500)
                        Provision for Post Planning Period capacity                                                                                    34,535,700                           (9,525,775)          (25,009,925)       (15,756,253)       (9,253,672)


                                                                                                                                                                                              6,000,000           (6,000,000)        (3,780,000)       (2,220,000)
                                                                                                                                                                                      DC Reserve Fund
                                                                                                                                                                                                Credit

                        Total                                                                                  239,975,830           42,500,000        34,535,700       17,664,800           48,985,526           96,289,805         60,662,577        35,627,228

             1
                  Reduction in costs related to existing lanes and adjustment for changes in construction standards and attribution of benefit to existing are as per the City's Transportation Master Plan as updated in 2009.
             2
                  Grants, if they should become available, will be applied to the project for which they are awarded.



Watson & Associates Economists Ltd.                                                                                     Revision Date: 22/09/20092:03 PM                                                                          Kingston DC Impost 2009 - for consolidated.xlsx
                                                                                                                                                                                                 4-27


                                                                                       SERVICE: ROADS AND RELATED

        CITY OF KINGSTON
        LEVEL OF SERVICE CALCULATION SHEET

        Sub-Service Category:         Works & Maintenance Facilities
        Contact :                     Damon Wells
        Unit Measure:                 Square Feet of Building Area

                                Facility                                                                                                                                          Fac. Value
                                Name                               1999         2000         2001        2002        2003       2004      2005      2006      2007      2008        ($/s.f.)

        City West Facility (used @ 50% beginning in 2000)               9,400     4,700         4,700       4,700       4,700     4,700     4,700     4,700     4,700     4,700           113
        City Central Facility                                          21,926    21,926        21,926      21,926      21,926    21,926    21,926    21,926    21,926    21,926           113
        East Parks Storage                                              6,000     6,000         6,000       6,000       6,000     6,000     6,000     6,000     6,000     6,000           114

        Salt & Sand Domes (2)                                          14,400    14,400        14,400      14,400      14,400    14,400    14,400    14,400    14,400    14,400            30

        Maintenance Garage, Woodbine Park                               1,200     1,200         1,200       1,200       1,200     1,200     1,200     1,200     1,200     1,200           114




                                 Total                                 52,926    48,226        48,226      48,226      48,226    48,226    48,226    48,226    48,226    48,226


        Population                                                 113,543      113,889      114,195      114,650     115,201   116,186   116,789   117,207   117,999   118,791
        Per Capita/Level of Service                                   0.47         0.42         0.42         0.42        0.42      0.42      0.41      0.41      0.41      0.41

        10 Year Average
        Quantity (sq.ft./capita)                                       0.4205
        Quality ($/sq.ft.)                                             $88.48
        Combined Quantity/Quality Level ($/capita)                     $37.21

                    DC Amount (before deductions)                Build-out
        Forecast Population                                          21,882
        $ per Capita                                                $37.21
        Eligible Amount                                          $814,162




Watson & Associates Economists Ltd.                                                       Revision Date: 26/06/200912:10 AM                                                    Kingston DC Impost 2009
                                                                                                                                                                                                               4-28


                                                                                          SERVICE: ROADS AND RELATED

                  CITY OF KINGSTON
                  LEVEL OF SERVICE CALCULATION SHEET

                  Sub-Service Category: Corporate Fleet
                  Contact :             Bud Steele
                  Unit Measure:         Number of Vehicles/Equipment

                                    Department                                                                                                                                             Value
                                      Name                            1999         2000           2001        2002        2003        2004      2005      2006      2007      2008      ($/vehicle)

                  Vehicles/Equipment with useful life of 7+ yrs.             70           70             73          67          95      151       145       153       148       134        55,446




                                       Total                                 70           70             73          67          95      151       145       153       148       134        55,446


                  Population                                          113,543      113,889        114,195     114,650     115,201     116,186   116,789   117,207   117,999   118,791
                  Level of Service (per 1,000 pop'n)                     0.62         0.61           0.64        0.58        0.82        1.30      1.24      1.31      1.25      1.13

                  10 Year Average
                  Quantity (vehicles/per 1,000 pop'n)                  0.9508
                  Quality ($/vehicles)                                $55,446
                  Combined Quantity/Quality Level ($/capita)           $52.72

                           DC Amount (before deductions)             Build-out
                  Forecast Population                                    21,882
                  $ per Capita                                          $52.72
                  Eligible Amount                                   $1,153,611
                  Note: detailed inventory of equipment is available beginning in 2004




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                                                                                                                                                                                                              4-29


                                                                                    SERVICE: ROADS AND RELATED
                                                                   INFRASTRUCTURE COSTS COVERED IN THE DC CALCULATION


                                                                                                                            Less:                                  Less:           Potential DC Recoverable Cost
Prj.                 Increased Service Needs            Timing       Gross       Ineligible       Net           Benefit to Grants, Subsidies and                 Other (e.g.    Total       Residential Non-Residential
No                         Attributable to              (Year)       Capital      re: Level      Capital         Existing   Other Contributions                 10% Statutory                 Share          Share
                     Anticipated Development                          Cost       of Service      Cost 1        Development  Attributable to New    Subtotal      Deduction)                    63%            37%
                            2009 - 2029                             Estimate                                                   Development

           Public Works Facilities


           New Maintenance, Storage, Admin. Facility     2012       28,000,000    27,112,559        887,441              0                            887,441               0    887,441       559,088          328,353
           Second Storage Facility                       2016       12,000,000    11,619,668        380,332              0                            380,332               0    380,332       239,609          140,723
                                                                                                                                                                                1,267,773      798,697          469,076
           Corporate Fleet
           Additional Vehicles Equipment               2009-2013       175,000                      175,000              0                            175,000               0    175,000       110,250           64,750
           Additional Vehicles Equipment               2014-2018       175,000                      175,000              0                            175,000               0    175,000       110,250           64,750
           Additional Vehicles Equipment               2019-2029       350,000                      350,000              0                            350,000               0    350,000       220,500          129,500


                                                                                                                                                                                 700,000       441,000          259,000




           Total                                                    40,700,000    38,732,227       1,967,773             0                     0    1,967,773               0   1,967,773    1,239,697          728,076

       1
           Capped by level of service eligibility.




       Watson & Associates Economists Ltd.                                                     Revision Date: 26/06/200912:10 AM                                                            Kingston DC Impost 2009
     5. CALCULATION OF DEVELOPMENT CHARGE RATES




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                                                                                                       5-1

5.       CALCULATION OF DEVELOPMENT CHARGE RATES

5.1      Residential Development Charge Rate

Tables 5-1 and 5-2 calculate the proposed uniform development charge to be imposed on
anticipated development in the City for City-wide services (excluding municipal water and
sanitary sewer). The calculation for residential development is generated on a per capita basis,
and is based upon different forms of housing types (Single and semi detached, Apartments – 2
bedrooms +, Apartments – bachelor and 1 bedroom, and all Other Multiples).                       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 ten year eligible costs for each service component are developed in Chapter 4 for City
services, based on their capital programs. The roads capital program as proposed by the City’s
Transportation Master Plan has been developed over a buildout planning horizon.


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). This approach acknowledges that service capacity will be
“freed up” by the population decline in existing units. The cost per capita is then multiplied by
the average occupancy of the new units (Appendix A; Schedules 4a and 5) to calculate the
charges in Tables 5-1 and 5-2 respectively.


5.2      Non-Residential Development Charge Rate

With respect to non-residential development, the total costs in the uniform charge allocated to
non-residential development (based on need for service) has been divided by the anticipated
development over the planning period to calculate a cost per sq.ft. of gross floor area.




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                                                                                  TABLE 5-1
                                                                              CITY OF KINGSTON
                                                                      DEVELOPMENT CHARGE CALCULATION
                                                                             CITY-WIDE SERVICES
                                                                                  2009 - 2019
                                                                                                                                                         1
                                                                                 2009 $ Eligible Cost         2009 $ Eligible Cost         Current Rates
                               SERVICE                                      Residential     Non-Residential   SDU            per s.f.     SDU        per s.f.
                                                                                $                  $            $              $           $             $
    1. Protection (Fire)
        1.1 Fire Facilities                                                      1,373,700         772,700          256            0.17
        1.2 Fire Vehicles & Equipment                                              320,000         180,000           60            0.04
                                                                                 1,693,700         952,700          316            0.21       334             0.20
    2. Protection (Police)
        2.1 Police Vehicles                                                        704,000         396,000          131            0.08
        2.2 Police Officer Outfitting                                              139,100          78,200           26            0.02
        2.3 Police Facilities                                                      268,100         150,800           50            0.03
                                                                                 1,111,200         625,000          207            0.13       151             0.11

    3. Parks and Recreation
        3.1 Major Indoor Recreation Facilities                                  4,814,300          253,300          896            0.05
        3.2 Parkland Development                                                7,182,000          378,000        1,337            0.08
                                                                               11,996,300          631,300        2,233            0.13      2,203            0.16

    4. Libraries
        4.1 Library Collections                                                  2,351,200         123,700          438            0.03
                                                                                 2,351,200         123,700          438            0.03       479             0.02

    5. Transit
        5.1 Transit Facilities                                                     223,800         143,000           42            0.04
        5.2 Transit and KAB Vehicles                                               950,700         607,800          177            0.13
        5.3 Transit Shelters                                                        30,300          19,400            6            0.00
                                                                                 1,204,800         770,200          225            0.17       334             0.29

    6. Social Housing
        6.1 Social Housing                                                         560,794          29,515          104            0.01         9             0.00

    7. Administration
        7.1 General Development Related Studies                                    469,300         201,100           87            0.05       106             0.09


    TOTAL                                                                     $19,387,294        $3,333,515      $3,610          $0.73     $3,617            $0.87

    DC ELIGIBLE CAPITAL COST                                                  $19,387,294        $3,333,515
    2009 - 2019 Gross Population / GFA Growth (sq.ft.)                             15,365         4,622,600
    Cost Per Capita / Non-Residential GFA (sq.ft.)                              $1,261.78             $0.73
    By Residential Unit Type                     p.p.u
       Single and Semi-Detached                  2.86                                   $3,610
       Apartments 2 Bedroom +                    1.83                                   $2,309
       Apartments Bach. & 1 Bdrm                 1.28                                   $1,615
       Other Multiples                           2.19                                   $2,763
1
    Current In-force rates have been adjusted by an estimated 2009 index value of 4%.




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                                                                                  TABLE 5-2
                                                                              CITY OF KINGSTON
                                                                      DEVELOPMENT CHARGE CALCULATION
                                                                             CITY-WIDE SERVICES
                                                                                2009 to Buildout


                                                                                                                                                            1
                                                                                 2009 $ Eligible Cost            2009 $ Eligible Cost         Current Rates
                               SERVICE                                      Residential     Non-Residential      SDU            per s.f.     SDU        per s.f.
                                                                                $                  $               $              $           $             $
    8. Roads and Related
        8.1 Roads                                                              60,662,500           35,627,200       5,762            3.88
        8.2 Works & Maintenance Facilities                                        798,600              469,000          76            0.05
        8.3 Corporate Fleet                                                       441,000              259,000          42            0.03
             Financing Costs (Roads only)                                               0            2,109,300                        0.23

    DC ELIGIBLE CAPITAL COST                                                  $61,902,100          $38,464,500      $5,880          $4.19     $3,955            $3.98
    2009 - 2029 Gross Population / GFA Growth (sq.ft.)                             30,110            9,171,000
    Cost Per Capita / Non-Residential GFA (sq.ft.)                              $2,055.87                $4.19
    By Residential Unit Type                    p.p.u.
       Single and Semi-Detached                  2.86                                   $5,880
       Apartments 2 Bedroom +                    1.83                                   $3,762
       Apartments Bach.+1 Bdrm                   1.28                                   $2,631
       Other Multiples                           2.19                                   $4,502
1
    Current In-force rates have been adjusted by an estimated 2009 index value of 4%.




A cash flow methodology has been used to estimate costs associated with the issuance of
debentures (refer to Appendix C) that are anticipated in relation to the roads non-residential
construction program. Revenue collections have been projected using estimated development
charge rates collected in accordance with the study growth projections.                                                                      The timing of
expenditures is in accordance with timing estimates provided by AECOM with adjustments to
project timing as indicated on page 4-26.                                                        As a result of the cash flow calculation, the
development charge per square foot of gross floor area for Roads service is increased by $0.23
to $4.11/s.f.




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                                                                                                                                                                                                                                  5-4
                                                                                                              Table 5-3

                                                                                                         CITY OF KINGSTON
                                                                            GROSS EXPENDITURE AND SOURCES OF REVENUE SUMMARY
                                                                                                    CITY SERVICES
                                                                          FOR COSTS TO BE INCURRED DURING THE TERM OF THE PROPOSED BY-LAW(S)
                                                                                                      (2009 - 2013)

                                                                                                                                                     SOURCES OF FINANCING
                                                                               TOTAL                     TAX BASE OR OTHER NON-DC SOURCE                                                     DC / IMPOST RESERVE FUND
                                               SERVICE                       GROSS COST     INELIGIBLE          BENEFIT TO         LEGISLATED
                                                                                                                                                                      POST PLANNING
                                                                                             RE LOS              EXISTING           REDUCTION             OTHER       PERIOD BENEFIT   RESIDENTIAL        NON-RESIDENTIAL


                        1.   Protection (Fire)
                             1.1     Fire Facilities                            5,500,000      3,115,049               238,495                  0                                          1,373,732                    772,724
                             1.2     Fire Vehicles & Equipment                    250,000              0                     0                  0                                            160,000                     90,000

                        2.   Protection (Police)
                             2.1     Police Vehicles                              304,000         64,547                       0                0                                           153,250                      86,203
                             2.2     Police Officer Outfitting                    156,000         33,123                       0                0                                            78,641                      44,236

                        3.   Parks and Recreation
                             3.1    Major Indoor Recreation Facilities         25,000,000     21,789,237                       0           321,076                                         2,745,202                    144,484
                             3.2    Parkland Development                        4,200,000              0                       0           420,000                                         3,591,000                    189,000

                        4.   Libraries
                             4.1     Library Collections                        1,375,000                 0                    0           137,500                                         1,175,625                     61,875

                        5.   Transit
                             5.1     Transit Facilities                         1,775,000      1,284,389                  82,920            40,769                                           223,822                    143,099
                             5.2     Transit and KAB Vehicles                   2,737,690      1,980,991                       0            75,670                                           415,427                    265,601
                             5.3     Transit Shelters                             100,000         72,360                       0             2,764                                            15,174                      9,702

                        6.   Social Housing
                             6.1     Social Housing                             2,933,333         18,222             2,623,600              29,151                                          249,242                      13,118

                        7.   Administration
                             7.1    General Development Related Studies           605,000                 0            227,500              15,250                                          253,575                     108,675

                        8.   Roads and Related
                             8.1    Roads                                      26,749,289              0             5,013,770                            1,608,000                0     12,680,337                 7,447,182
                             8.2    Works & Maintenance Facilities             28,000,000     27,112,559                     0                  0                                           559,088                   328,353
                             8.3    Corporate Fleet                               175,000              0                     0                  0                                           110,250                    64,750

                        9.   Water
                             9.1   Water Supply and Treatment, Storage         76,100,000                 0         32,706,267                            6,666,000                      16,527,480               20,200,253
                             9.2   Major Watermains                             8,933,500                            1,604,520                            3,444,375                       2,584,297                1,300,308

                        10. Wastewater
                            10.1  Wastewater Treatment                                  0                                    0                                                                     0                        0
                            10.2  Wastewater - Major Works                      2,740,000                              330,000                                                             1,084,500                1,325,500
                            10.3  Wastewater - Trunks                           3,072,100                                    0                                                             2,149,790                  922,310



                        TOTAL EXPENDITURES & REVENUES                        $190,705,912   $55,470,478           $42,827,072       $1,042,180         $11,718,375               $0     $46,130,433             $33,517,374




Watson & Associates Economists Ltd.                                            H:\Kingston\2009 Kingston DC Impost Study.docx
             6. CALCULATION OF THE IMPOST FEE RATES
                  AND BACKGROUND INFORMATION




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                                                                                                          6-1


6.       CALCULATION OF THE IMPOST FEE AND
         BACKGROUND INFORMATION

6.1      Introduction

The City of Kingston utilizes Section 391 of the Municipal Act to impose impost fees for water
works and sewer services in order to recover the capital costs of infrastructure related to future
expansion of the service systems. The fees will be imposed on all new connections to the water
and wastewater systems. This chapter provides background information on the calculation of
the proposed water and wastewater impost fees.


The calculation of the impost fees for the City of Kingston has been developed utilizing capital
cost information outlined in the City’s Urban Growth Strategy (UGS) and updated in 2009 by
Utilities Kingston staff. A Water Supply Master Plan was prepared in June, 2007 by Simcoe
Engineering Group Limited, which has provided improved information on which to base the
impost fees that are calculated for water works.


6.2      Impost Fee Calculation for Water Service

This section outlines the detailed calculations of the impost fee for water works for the City of
Kingston.      The water works capital cost estimates, approximate timing of the works and
allocation of costs between rates and growth related impost fees, for works that are projected to
be required to provide water service to the projected growth to build-out of the City’s urban
serviced area.


The allocation of costs between residential and non-residential uses is determined on the basis
of residential versus non-residential capacity utilization of the service systems. Flow demands
used in the calculations below are based upon the assumptions that were used by J.L. Richards
in the 2004 UGS report. The cost allocation between residential (@45%) and non-residential
(@55%) has been calculated as follows:


Residential demand:
# of people (2009 to build-out for urban serviced area only) = 20,467 persons
Residential flow = 20,467 persons * .350 m3/person/day = 7,163 m3/day
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Non-residential demand:

ICI area (same growth projection and service area assumptions) = 12,445/40 jobs/ha = 311 ha
ICI flow = 311 ha * 28 m3/ha/day = 8,708 m3/day


Residential percentage = 7,163/(7,163 + 8,708) = 0.45
Residential / ICI allocation is, therefore: 45/55

Residential and non-residential cost allocations are the same for both water and wastewater
services.

A credit of $5.0 million has been given to recognize existing reserve funds that are available to
offset costs to future growth for water service. Cash flow calculations which use the same
methodology as outlined in Chapter 5 (see Appendix C) are used to estimate the cost of
debenture financing for the capital program.




6.3      Impost Fee Calculation for Sewer Service

This section outlines the sewer works capital cost estimates, approximate timing of the works
and allocation of costs between rates and growth related impost fees, for works that are
projected to be required to provide sewer service to the projected growth to buildout of the City’s
urban serviced area.


A credit of $10.0 million has been included in the calculation to recognize existing reserve funds
that are available to the offset costs of future growth.




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                                                                                 SERVICE: WATER
                                                             INFRASTRUCTURE COSTS COVERED IN THE IMPOST FEE CALCULATION


                                                                                                                                                                     Impost Recoverable Cost
                Prj.            Increased Service Needs         Timing      Gross           Grants or             Post             Benefit to               Benefiting       Residential Non-Residential
                No                    Attributable to           (Year)      Capital         Alternative      Planning Period        Existing             New Development       Share         Share
                                Anticipated Development                      Cost           Sources of          Capacity          Development                 (Net)             45%           55%
                                       2009 - 2029                         Estimate         Financing

                       Water Supply and Treatment, Storage


                       Point Pleasant WTP                      2009-2013   66,000,000                                                   26,400,000             39,600,000    17,820,000      21,780,000


                       Third Ave storage expansion             2014-2018    4,200,000                                                    1,680,000               2,520,000    1,134,000       1,386,000
                       O'Connor Dr storage                     2009-2013    6,500,000            4,290,000                                 840,667               1,369,333      616,200         753,133
                       Gore Rd storage                         2014-2015    2,100,000                                                      840,000               1,260,000      567,000         693,000


                       O'Connor Dr Booster Stn.                2009-2013    3,600,000            2,376,000                                 465,600                758,400       341,280         417,120
                       Gore Rd Booster Stn.                    2014-2015    1,700,000                                                      680,000               1,020,000      459,000         561,000


                       Studies (growth share only)               2014        200,000                                                                 0            200,000        90,000         110,000
                                                                                                                                         5,000,000             (5,000,000)   (2,250,000)     (2,750,000)
                                                                                                                               Impost Reserve Fund
                                                                                                                                            Credit

                       Total                                               84,300,000            6,666,000                0             35,906,267             41,727,733    18,777,480      22,950,253




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                                                                                      SERVICE: WATER
                                                                 INFRASTRUCTURE COSTS COVERED IN THE IMPOST FEE CALCULATION


                                                                                                                                                                    Impost Recoverable Cost
         Prj.                  Increased Service Needs                   Timing      Gross          Grants or             Post          Benefit to        Benefiting       Residential  Non-Residential
         No                          Attributable to                     (Year)      Capital        Alternative      Planning Period     Existing      New Development       Share          Share
                               Anticipated Development                                Cost          Sources of          Capacity       Development          (Net)             45%            55%
                                      2009 - 2029                                   Estimate        Financing

                Major Watermains
                Bath Road - at the Interconnection                      2009-2013        50,000                                              25,000              25,000         11,250             13,750
                Bayridge - Acadia to Taylor Kidd                        2014-2018     2,000,000          1,320,000                          408,000             272,000        122,400          149,600
                Bayridge - Cat Woods to Woodbine                        2009-2013       656,250           433,125                                               223,125        100,406          122,719
                Bayridge - Creekford to Sierra                          2014-2018       562,000           370,920                                               191,080         85,986          105,094
                Bayridge - Woodbine to Old Colony                       2014-2018       345,000           227,700                            58,650              58,650         26,393             32,258
                Creekford - Water Tower/Cloggs to Bayridge              2014-2018       337,500           222,750                                               114,750         51,638             63,113
                Creekford - Bayridge to Woodhaven Community             2019-2023       262,500                                                                 262,500        118,125          144,375
                John Counter Blvd - Indian Rd to Purdy's Crt/Princess   2014-2018       950,000                                             475,000             475,000        213,750          261,250
                Front St - Sunny Acres to Bayridge                      2009-2013     2,250,000          1,485,000                          648,720             116,280         52,326             63,954
                Front St - Sunny Acres to Trail Head                    2019-2023     4,000,000          2,640,000                          680,000             680,000        306,000          374,000
                King - Trail Head Pl to King St WTP                     2019-2023     5,200,000                           3,120,000        1,040,000          1,040,000        468,000          572,000
                Gardiners - O'Connor to Cat Woods                       2014-2018       787,500           519,750                           107,100             160,650         72,293             88,358
                Gore - JCB - Montreal to Hwy 15                         2014-2015     1,080,000                                                               1,080,000        486,000          594,000
                Princess St - Taylor Kidd to Ambassador                 2009-2013     1,200,000                                             600,000             600,000        270,000          330,000
                O'Connor - Reservoir to Gardiners                       2009-2013       312,500           206,250                            58,800              47,450         21,353             26,098
                Sunny Acres - Pt Pleasant WTP to Front St               2009-2013     2,000,000          1,320,000                          272,000             408,000        183,600          224,400
                Taylor Kidd - Bayridge to Blackburn Mews                2014-2018     1,875,000                                            1,162,500            712,500        320,625          391,875


                These projects address existing City commitments:                                                                                                            75%             25%
                Augusta Drive - Sheridan St to Cat Woods*               2009-2013       217,500                                                                 217,500        163,125             54,375
                Cataraqui Woods Drive - Clyde Crt to Sydenham*          2009-2013       686,250                                                                 686,250        514,688          171,563
                Centennial Drive - Crossfield Dr to Centennial Dr*      2009-2013     1,102,500                                                               1,102,500        826,875          275,625
                                                                                                                                                                             95%              5%
                Pearl Road - Peachwood St to Creekford Rd*              2009-2013       356,500                                                                 356,500        338,675             17,825
                                                                                                                                                                             100%             0%
                Cat Mills Subdivision - Old Mill Road*                  2009-2013       102,000                                                                 102,000        102,000                 0



                Total                                                                26,333,000         8,745,495         3,120,000        5,535,770          8,931,735      4,855,506        4,076,229

                * Transitional Commitments




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                                                                                                                                                                                                       6-5


                                                                         SERVICE: WASTEWATER
                                                           INFRASTRUCTURE COSTS COVERED IN THE IMPOST FEE CALCULATION


                                                                                                                                                          Impost Recoverable Cost
               Prj.             Increased Service Needs    Timing      Gross        Grants or          Post            Benefit to               Benefiting       Residential  Non-Residential
               No                     Attributable to      (Year)      Capital      Alternative   Planning Perio        Existing             New Development       Share          Share
                                Anticipated Development                 Cost        Sources of       Capacity         Development                 (Net)             45%            55%
                                       2009 - 2029                    Estimate      Financing

                      Wastewater Treatment Plants

                      Cataraqui Bay WWTP                  2014-2018   34,000,000                                            13,600,000             20,400,000      9,180,000       11,220,000
                      Ravensview Oversizing               pre-2009    18,000,000                                                                   18,000,000      8,100,000        9,900,000
                       - net growth share only

                                                                                                                                         0


                      Studies (growth share only)           2014        300,000                                                          0            300,000        135,000          165,000




                                                                                                                            10,000,000            (10,000,000)    (5,800,000)      (4,200,000)
                                                                                                                   Impost Reserve Fund
                                                                                                                                Credit

                      Total                                           52,300,000                              0             23,600,000             28,700,000     11,615,000       17,085,000




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                                                                                                                                                                                                           6-6


                                                                                    SERVICE: WASTEWATER
                                                                    INFRASTRUCTURE COSTS COVERED IN THE IMPOST FEE CALCULATION


                                                                                                                                                             Impost Recoverable Cost
              Prj.            Increased Service Needs                Timing      Gross                                  Post        Benefit to    Benefiting       Residential    Non-Residential
              No                    Attributable to                  (Year)      Capital            Grants or      Planning Period   Existing  New Development       Share            Share
                              Anticipated Development                             Cost         Alternative Sources    Capacity     Development      (Net)             45%              55%
                                     2009 - 2029                                Estimate           of Financing


                     Pumping Stations
                     Westbrook                                      2009-2014       200,000                                             50,000           150,000         67,500             82,500
                     Butternut Creek                                2009-2014     1,130,000                                            280,000           850,000        382,500            467,500
                     Sands Land*                                    2014-2018     1,000,000                                                            1,000,000        450,000            550,000
                     Cat Mills Subdivision*                         2009-2013       800,000                                                              800,000        360,000            440,000




                     Forcemains
                     Butternut Creek                                2009-2014       410,000                                                             410,000         184,500            225,500
                     Cat Mills Subdivision - to Princess & Taylor   2009-2013       200,000                                                             200,000          90,000            110,000




                     Total                                                        3,740,000                    0               0       330,000         3,410,000       1,534,500         1,875,500

                     * Transitional Commitments




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                                                                                      SERVICE: WASTEWATER
                                                                       INFRASTRUCTURE COSTS COVERED IN THE IMPOST FEE CALCULATION


                                                                                                                                                                  Impost Recoverable Cost
            Prj.                 Increased Service Needs                  Timing      Gross                                 Post          Benefit to    Benefiting        Residential  Non-Residential
            No                         Attributable to                    (Year)      Capital           Grants or      Planning Period     Existing  New Development        Share          Share
                                 Anticipated Development                               Cost        Alternative Sources    Capacity       Development      (Net)              45%            55%
                                      2009 to Buildout                               Estimate          of Financing


                   Wastewater Trunks
                   Collins Bay Collector (WA) - 3 Sections               2014-2018      280,000                                                                 280,000        126,000         154,000
                    - Taylor Kidd to Alymer
                   Lincoln Drive (WC) - 1 section - at Graceland         2014-2018        46,800                                                                 46,800         21,060            25,740
                   Pembridge Cr (WD) - 8 sections                        2009-2013      927,600                                                                 927,600        417,420         510,180
                    - Milford to Truedell
                   North-East Collector (WO) - 1 section                 2014-2018      151,300                                                                 151,300         68,085            83,215
                    - CNR Tracks to Bath Road
                   Bath Road (WP) - 5 sections                           2019-2023      413,700                                                                 413,700        186,165         227,535
                    - Tanner to Centennial
                   North End Outfall Sewer (CI) - 4 sections             2019-2023      372,300                                                                 372,300        167,535         204,765
                    - Elliot St to Armadale Crt
                   North Harbour Front Interceptor (CK) - 3 sections     2014-2018      615,400                                                                 615,400        276,930         338,470
                    - River St to Belle Park
                   Hwy 15 Trunk (EA) - 22 sections                       2014-2018     2,031,600                                                              2,031,600        914,220       1,117,380
                    - Bartlett Crt to Roase Abbey
                   Hwy 15 Trunk (ED) - 2 sections                        2009-2013      261,600                                                                 261,600        117,720         143,880
                    - Wellington St to Forcemain
                   Trunk Interconnections                                2009-2013        25,000                                                                 25,000         11,250            13,750


                   These projects address existing City commitments:                                                                                                         75%            25%
                   Crossfield Avenue & Augusta Drive*                    2009-2013      835,000                                                                 835,000        626,250         208,750
                                                                                                                                                                             95%             5%
                   Collins Creek Sewer*                                  2009-2013      675,000                                                                 675,000        641,250            33,750
                   Helena Street*                                        2009-2013      240,000                                                                 240,000        228,000            12,000
                                                                                                                                                                            100%             0%
                   Cat Mills Subdivision - Old Mill Rd to Park*          2009-2013      107,900                                                                 107,900        107,900                0




                   Total                                                               6,983,200                    0                0              0         6,983,200      3,909,785       3,073,415

           * Transitional Commitments




Watson & Associates Economists Ltd.                                                     Revision Date: 26/06/200912:16 AM                                                                 Kingston DC Impost 2009
                                                                                                                                                            6-8


6.4            Summary of Calculated Fees Including Financing Costs

Table 6-1 presents the calculation of the proposed impost fees for water works and sewer
services, together with a comparison of the proposed fees to existing fees currently in place
under By-law No. 2004-257 (comparative rates are projected to September, 2009 using an
estimated inflation rate of 4%).



                                                                                       TABLE 6-1
                                                                                   CITY OF KINGSTON
                                                                               IMPOST FEE CALCULATION
                                                                                 URBAN AREA SERVICES
                                                                                    2009 to Buildout


                                                                                                                                                             1
                                                                                 2009 $ Impost Cost            2009 $ Impost Cost        Current Impost Fees
                               SERVICE                                      Residential    Non-Residential     SDU          per s.f.      SDU         per s.f.
                                                                                $                $               $             $           $             $
    9. Water
        9.1 Water Supply and Treatment, Storage                                18,777,400         22,950,200      1,907           2.63
        9.2 Major Watermains                                                    4,855,500          4,076,200        493           0.47
             Financing Costs                                                       49,200          5,924,400          5           0.68
                                                                               23,682,100         32,950,800      2,405           3.78       1,727          2.05

    10. Wastewater
        10.1 Wastewater Treatment                                              11,615,000         17,085,000      1,180           1.96
        10.2 Wastewater - Major Works                                           1,534,500          1,875,500        156           0.22
        10.3 Wastewater - Trunks                                                3,909,700          3,073,400        397           0.35
             Financing Costs                                                            0          4,181,900                      0.48
                                                                               17,059,200         26,215,800      1,733           3.01       2,707          3.66


    IMPOST ELIGIBLE CAPITAL COST                                              $40,741,300        $59,166,600     $4,138          $6.79      $4,434         $5.71
    2009 - 2029 Gross Population / GFA Growth (sq.ft.)                             28,162          8,712,450
    Cost Per Capita / Non-Residential GFA (sq.ft.)                              $1,446.68              $6.79
    By Residential Unit Type                    p.p.u.
       Single and Semi-Detached                  2.86                                   $4,138
       Apartments 2 Bedroom +                    1.83                                   $2,647
       Apartments Bach.+1 Bdrm                   1.28                                   $1,852
       Other Multiples                           2.19                                   $3,168
1
    Current In-force rates have been adjusted by an estimated 2009 index value of 4%.




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7. DEVELOPMENT CHARGE POLICIES AND BY-LAW RULES




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7.       DEVELOPMENT CHARGE POLICY RECOMMENDATIONS
         AND DEVELOPMENT CHARGE BY-LAW RULES

7.1      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.


 -       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.



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7.2      Development Charge By-law Structure

It is recommended that:


          -       the City continue to use a municipal-wide development charge calculation for all
                  City services other than sanitary sewer, water and storm water management.


          -       the City implement either development charges or impost fees as applicable for
                  sanitary sewer, water and storm water management services (as needed) within
                  their service areas.




7.3      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, 1997.


It is recommended that:


7.3.1 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 bylaw 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


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g)       the issuing of a building permit under the Building Code Act in relation to a building or
         structure.


7.3.2 Determination of the Amount of the Charge


The following conventions be adopted:


1)       Costs allocated to residential uses will be assigned to different types of residential units
         based on the average occupancy for each housing type constructed during the previous
         decade.


2)       Costs are allocated to residential uses (as opposed to non-residential uses) based upon
         a number of conventions, as may be suited to each municipal circumstance, eg.


          -       For services such as parks and recreation which are fundamentally directed
                  toward residential users, 5% is attributed to non-residential to cover business and
                  related use, with the balance to residential.


          -       For protection services, costs have been allocated between residential and non-
                  residential on the basis of projected land requirements to accommodate the
                  City’s growth.


          -       For transit services (ten year program), the allocation was based on employment
                  vs. population growth increment.


          -       For roads and related service (build-out program) the allocation has also been
                  based on employment vs. population growth increment.


7.3.3 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:


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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 non-
         residential 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.


7.3.4 Exemptions (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
                  the addition in excess of 50% is subject to development charges (s.4(3));


          -       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 in only 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:
          -       places of worship exempt from taxation
          -       industrial land uses
          -       non-residential farm buildings
          -       lands within the Kingston’s Community Improvement Area may be exempted


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7.3.5 Phasing in


No provisions for phasing in the development charge be provided in the development charge
by-law.


7.3.6 Timing of Collection


The development charge will be collected at the time of issuance of the first building permit,
subject to early or late payment agreements entered into by the City and an owner under s.27 of
the DCA, 1997.


7.3.7 Indexing


Automatic indexing of the development charges will be implemented on an annual basis from
the date the by-law comes into force, in accordance with the Statistics Canada Quarterly,
Construction Price Statistics index for the Ottawa Region.


7.3.8 The Applicable Areas


The uniform by-law for all services except water, sanitary sewer and storm water management,
applies to all lands within the City.


Development charges or impost fees as applicable for water, sanitary sewer and storm water
management services are only applicable within the serviced area (as needed).




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7.4      Other Development Charge By-law Provisions


It is recommended that:


7.4.1 Categories of Services for Reserve Fund and Credit Purposes


The City development charge collections be reserved in two separate reserve funds: protection
and roads-related; and discounted services (transit, parks and recreation, libraries, social
housing and administration).


7.4.2 By-law In-force Date


A by-law under DCA, 1997, unless otherwise specified, comes into force on the day after which
the by-law is passed by City Council. The draft by-law as prepared provides that the by-law in
force date will be September 29, 2009.


7.4.3 Minimum Interest Rate Paid on Refunds and Charged for 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 City 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 Development Charge/Impost Fee Background Study dated June
         29, 2009 as amended by an Addendum dated August 25, 2009";

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         “Approve the capital project listings set out in Chapter 4 and Chapter 5 of the
         Development Charge/ Impost Fee Background Study dated June 29, 2009 as
         amended by an Addendum dated August 25, 2009, subject to further annual
         review during the capital budget process”;

         “Determine that no further public meeting is required”; and

         “Approve the Development Charge By-law as set out in Appendix H.”

         “Approve the Impost Fee By-law as set out in Appendix I.”




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                                      APPENDIX A

            RESIDENTIAL AND NON-RESIDENTIAL GROWTH
                                      FORECAST
                            – BACKGROUND INFORMATION




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                                                                                                                      SCHEDULE 1
                                                                                                                   CITY OF KINGSTON
                                                                                                RESIDENTIAL GROWTH (URBAN AND RURAL) FORECAST SUMMARY

                                                                                                                                                                                               2
                                                                                                Institutional                                                                     Households                                               Person
                                                                                                                  Total Population Net of
                                                                                    1,2                                                                                                                                                                 6
                                           Year                  Total Population               Population
                                                                                                             3
                                                                                                                  Institutional Population    Single Family 4       Multiples 5         Apartments             Other         Total     Per Unit (PPU)
                                                      Mid 1996                112,605                 5,250              107,355                 25,425             3,945           14,755            300     44,425                                2.42
                                                      Mid 2001                114,195                 4,625              109,570                 26,820             4,470           14,935            410     46,635                                2.35
                                                      Mid 2006                117,207                 4,500              112,707                 28,010             4,990           15,515            410     48,925                                2.30
                                                      Mid 2009                119,583                 4,620              114,963                 29,169             5,121           15,744            410     50,443                                2.28
                                                      Mid 2014                124,315                 4,820              119,495                 31,026             5,535           16,433            410     53,403                                2.24
                                                      Mid 2019                130,008                 5,020              124,988                 32,865             6,008           17,511            410     56,793                                2.20
                                                      Mid 2024                136,027                 5,280              130,747                 34,436             6,486           18,816            410     60,148                                2.17
                                          Buildout (Mid 2029)                 142,425                 5,580              136,845                 35,799             6,961           20,158            410     63,328                                2.16
                                         Mid 1996 - Mid 2001                     1,590                 -625                2,215                  1,395               525              180            110       2,210
                                         Mid 2001 - Mid 2006                     3,012                 -125                3,137                  1,190               520              580               0      2,290
                                         Mid 2006 - Mid 2009                     2,376                  120                2,256                  1,159               131              229               0      1,518
                                         Mid 2009 - Mid 2014                     4,732                  200                4,532                  1,857               414              689               0      2,960
                                         Mid 2009 - Mid 2019                    10,425                  400               10,025                  3,696               887            1,767               0      6,350
                                         Mid 2009 - Mid 2024                    16,444                  660               15,784                  5,267             1,366            3,072               0      9,705
                             Mid 2009 - Buildout (Mid 2029)                     22,842                  960               21,882                  6,630             1,841            4,414               0    12,885
                           Source: Watson & Associates Economists Ltd., June 2009
                           1. Includes institutional population
                           2. Census population and housing figures may vary slightly due to rounding
                           3. 2006 base data and forecast based on TeraTrends, Population and Housing Forecast, Sept 2, 2008; 1996 and 2001 Institutional Population derived from Census data by Watson & Associates
                           4. Includes single family and semi-detached
                           5. Include townhouses and duplexes
                           6. Based on Net of Institutional Population
                           Note: Population forecast excludes the net Census undercount.




                                                                                                                          FIGURE A-1
                                                                                                                  ANNUAL HOUSING FORECAST
                                                                                                                        2009-BUILDOUT
                 1,000
                                                                                                                   (URBAN AND RURAL AREA)
                                                                                                896
                         900
                                                                        811
                         800
                                                                                                                                                          710     710   710       710   710
                         700
         Housing Units




                                                  629                                                                  630    630    630     630   630                                             645   645   645     645   645     630   630   630
                         600                             567                              582                    570
                                     524    525                 512                                     500
                         500
                                                                              437
                               412
                         400

                         300

                         200

                         100

                          0




                                                                                                                                    Years

                                                                      Historical                Low Density                  Medium Density                     High Density              Historical Average

  Source: Historical housing activity (1998-2008) based on CMHC Completions data less Statistics Canada Demolitions (2002-2008).



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                                                                                                             SCHEDULE 2
                                                                                                          CITY OF KINGSTON
                                                                                      ESTIMATE OF THE ANTICIPATED AMOUNT, TYPE AND LOCATION OF
                                                                                    DEVELOPMENT FOR WHICH DEVELOPMENT CHARGES CAN BE IMPOSED

                                                                                                                                                    EXISTING
                                                                                                                   TOTAL         POPULATION           UNIT            NET         COMMERCIAL INDUSTRIAL INSTITUTIONAL        TOTAL
      DEVELOPMENT                                              SINGLES,                                          RESIDENTIAL       IN NEW          POPULATION POPULATION             GFA          GFA          GFA          NON-RES       EMPLOYMENT

        LOCATION                        TIMING                 SEMIS &         TOWNHOUSES       APARTMENTS         UNITS           UNITS            CHANGE          INCREASE         S.F.         S.F.          S.F.        GFA S.F.       INCREASE




                                      2009 -2019                       3,356            887            1,767             6,010          14,391           -5,001          9,390         873,620    1,989,680     1,528,170     4,391,471         6,189
           Urban
                                     2009-Buildout                     5,950           1,841           4,414            12,205          28,162           -7,695         20,467       1,694,040    3,693,410     3,325,000     8,712,451        12,445

                  1
                                      2009 -2019                         340                0                0             340              973              -338           635         45,980     104,720         80,430      231,130            326
          Rural
                                     2009-Buildout                       680                0                0             680             1,947             -532        1,415          89,160     194,390        175,000      458,550            655
                                      2009 -2019                       3,696            887            1,767             6,350          15,364           -5,339         10,025         919,600    2,094,400     1,608,600     4,622,600         6,515
      City of Kingston
                                     2009-Buildout                     6,630           1,841           4,414            12,885          30,109           -8,227         21,882       1,783,200    3,887,800     3,500,000     9,171,000        13,100
1. Rural forecast based on historical rural building permit activity




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                                                     SCHEDULE 3
                                                 CITY OF KINGSTON
                                           CURRENT YEAR GROWTH FORECAST
                                                 Mid 2006 TO Mid 2009


                                                                                                                   POPULATION

     Mid 2006 Population (1)                                                                                                112,707


     Occupants of                               Units (2)                                                 1,518
     New Housing Units,                         multiplied by persons per unit (3)                         2.69
     Mid 2006 to Mid 2009                       gross population increase                                 4,091                 4,091


     Decline in Housing                         Units (4)                                              48,925
     Unit Occupancy,                            multiplied by ppu decline rate (5)                    -0.0375
     Mid 2006 to Mid 2009                       total decline in population                            -1,835                   -1,835


         Population Estimate to Mid 2009                                                                                    114,963


     Net Population Increase, Mid 2006 to Mid 2009                                                                              2,256




 (1) 2006 Total Population Net of Institutional Population unadjusted for Census Undercount.
 (2) Estimated residential units constructed, Mid 2006 to the beginning of the growth period, assuming a 6 month lag between
     construction and occupancy.
 (3) Average number of persons per unit (ppu) is assumed to be:


                                                               Persons                         % Distribution      Weighted Persons
                                                                        1
     Structural Type                                           Per Unit                      of Estimated Units2   Per Unit Average
     Single family & semi-detached                               2.91                               76%                  2.22
     Multiples except apartments                                 2.44                                9%                  0.21
     Apartments                                                  1.75                               15%                  0.26
     Total                                                                                          100%                 2.69
     ¹
         Based on 2006 Census custom database
     ² Based on Building permit acitivty
 (4) 2006 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.




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                                                              SCHEDULE 4a
                                                           CITY OF KINGSTON
                                                      TEN YEAR GROWTH FORECAST
                                                          MID 2009 TO MID 2019


                                                                                                                                 POPULATION

         Mid 2009 Population                                                                                                              114,963


         Occupants of                               Units (2)                                                        6,350
         New Housing Units,                         multiplied by persons per unit (3)                                2.42
         Mid 2009 to Mid 2019                       gross population increase                                       15,365                    15,365


         Decline in Housing                         Units (4)                                                       50,443
         Unit Occupancy,                            multiplied by ppu decline rate (5)                             -0.1059
         Mid 2009 to Mid 2019                       total decline in population                                     -5,339                    -5,339


            Population Estimate to Mid 2019                                                                                               124,988


         Net Population Increase, Mid 2009 to Mid 2019                                                                                        10,025




     (1) Mid 2009 Population based on:
         2006 Population (112,707) + Mid 2006 to Mid 2009 estimated housing units to beginning of forecast period (1,518 x 2.69 = 4,091) +
         (48,925 x -0.0375 = -1,835) = 114,963
     (2) Based upon forecast building permits assuming a lag between construction and occupancy.
     (3) Average number of persons per unit (ppu) is assumed to be:
                                                                         Persons                            % Distribution       Weighted Persons
                                                                                  1                                          2
         Structural Type                                                 Per Unit                         of Estimated Units     Per Unit Average
         Single family & semi-detached                                     2.86                                  58%                   1.67
         Multiples except apartments                                       2.19                                  14%                   0.31
         Apartments                                                        1.61                                  28%                   0.45
                             one bedroom or less 1.28
                          two bedrooms or more 1.83
         Total                                                                                                  100%                   2.42
        ¹
            Persons per unit based on adjusted Statistics Canada Custom 2006 Census database.
         ² Forecast unit mix based upon historical trends and housing units in the development process.
     (4) Mid 2009 households based upon 48,925 (2006 Census) + 1,518 (Mid 2006 to Mid 2009 unit estimate) = 50,443
     (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions.




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                                                                  SCHEDULE 5
                                                               CITY OF KINGSTON
                                                              GROWTH FORECAST
                                                             MID 2009 TO BUILDOUT


                                                                                                                                 POPULATION

         Mid 2009 Population                                                                                                              114,963


         Occupants of                               Units (2)                                                       12,885
         New Housing Units,                         multiplied by persons per unit (3)                                2.34
         Mid 2009 to Buildout                       gross population increase                                       30,110                    30,110


         Decline in Housing                         Units (4)                                                       50,443
         Unit Occupancy,                            multiplied by ppu. decline rate (5)                            -0.1631
         Mid 2009 to Buildout                       total decline in population                                     -8,227                    -8,227


            Population Estimate to Buildout                                                                                               136,845


         Net Population Increase, Mid 2009 to Buildout                                                                                        21,882




     (1) Mid 2009 Population based on:
         2006 Population (112,707) + Mid 2006 to Mid 2009 estimated housing units to beginning of forecast period (1,518 x 2.69 = 4,091) +
         (48,925 x -0.0375 = -1,835) = 114,963
     (2) Based upon forecast building permits, assuming a lag between construction and occupancy.
     (3) Average number of persons per unit (ppu) is assumed to be:
                                                                         Persons                            % Distribution       Weighted Persons
                                                                                  1                                          2
         Structural Type                                                 Per Unit                         of Estimated Units     Per Unit Average
         Single family & semi-detached                                     2.86                                  51%                   1.47
         Multiples except apartments                                       2.19                                  14%                   0.31
         Apartments                                                        1.61                                  34%                   0.55
                             one bedroom or less 1.28
                          two bedrooms or more 1.83
         Total                                                                                                  100%                   2.34
        ¹
            Persons per unit based on adjusted Statistics Canada Custom 2006 Census database.
         ² Forecast unit mix based upon historical trends and housing units in the development process.
     (4) Mid 2009 households based upon 48,925 (2006 Census) + 1,518 (Mid 2006 to Mid 2009 unit estimate) = 50,443
     (5) Decline occurs due to aging of the population and family life cycle changes, lower fertility rates and changing economic conditions.




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                                                                             SCHEDULE 6a
                                                     SUMMARY OF UNITS IN THE DEVELOPMENT PROCESS
                                                                         CITY OF KINGSTON
                                                                               URBAN

                                                                                                      Density Type
                                     Stage of Development                         Low             Medium          High                    Total
                       Registered Not Built (1)                                          740                 16               454            1,210
                       % Breakdown                                                      61%                 1%               38%             100%


                       Draft Plans Approved                                              637               246              1,033            1,916
                       % Breakdown                                                      33%               13%                54%             100%


                       Application Under Review                                         258                142                636            1,036
                       % Breakdown                                                   24.9%              13.7%              61.4%           100.0%

                                                                       (2)
                       Vacant lands designated for Residential                        4,317              1,437              2,291            8,045
                       % Breakdown                                                   53.7%              17.9%              28.5%           100.0%


                       Total                                                           5,952             1,841              4,414           12,207
                       % Breakdown                                                   48.8%              15.1%              36.2%           100.0%
                   Source: City of Kingston, Summary of Pending & Committed Residential Subdivisions, Site Plans & Secondary Plans Detailed Development Report, revised August 26, 2008
                   1. Data adjusted to reflect building permit activity Sept -Dec 2008; Excludes Grousewood West Estates and Kingston Mills, located outside urban boundary and privately serviced
                   2. Includes Secondary Plans, plans in pre-consultation, and Cloggs Road developable land, and Princess Street Mixed Use Corridor
                   Cloggs Road development of 368 units assumed to be all low density, Princesss Street Mixed Use Corridor consists of 955 high density units



                                                                  SCHEDULE 6b
                                                     SUMMARY OF UNITS IN THE DEVELOPMENT PROCESS
                                                                 CITY OF KINGSTON
                                                                     RURAL

                                                                                                      Density Type
                                     Stage of Development                         Low             Medium          High                    Total
                                               (1)
                       Registered Not Built                                              24                   0                 0               24
                       % Breakdown                                                    100%                  0%                0%             100%

                       Draft Plans Approved                                                0                  0                 0                   0
                       % Breakdown                                                       0%                 0%                0%                  0%

                       Application Under Review                                                                                                   0
                       % Breakdown                                                     0.0%              0.0%               0.0%              0.0%

                                                                       (2)
                       Vacant lands designated for Residential                          861                  0                  0              861
                       % Breakdown                                                  100.0%               0.0%               0.0%           100.0%

                       Total                                                            885                  0                  0              885
                       % Breakdown                                                  100.0%               0.0%               0.0%           100.0%
                   Source: City of Kingston, Summary of Pending & Committed Residential Subdivisions, Site Plans & Secondary Plans Detailed Development Report, revised August 26, 2008
                   1. Grousewood West Estates and Kingston Mills
                   2. Based on number of vacant lots available for development; source: City of Kingston Planning Department, Fall 2008




Watson & Associates Economists Ltd                                                                                                        H:\Kingston\2009 DC Study\Growth\Kingston Growth Model 2009 rev
                                                      Schedule 7a                                                                                              Schedule 7b


                                                  CITY OF KINGSTON                                                                                        CITY OF KINGSTON
                                     HISTORICAL RESIDENTIAL BUILDING PERMITS                                                                  HISTORICAL RESIDENTIAL COMPLETIONS
                                                   YEARS 1999 - 2008                                                                                       YEARS 1999 - 2008




                                                          RESIDENTIAL BUILDING PERMITS                                                                        RESIDENTIAL BUILDING COMPLETIONS




               Year                     Low Density         Medium Density       High Density        Total                     Year             Low Density        Medium Density          High Density                Total
                                      (Singles & Semis)      (Townhouses)        (Apartments)                                                 (Singles & Semis)     (Townhouses)           (Apartments)
                            1997                    380                     42                  19           441                       1997                   17                     0                     108                 125
                            1999                    381                     36             183               600                       1999                 377                     17                      18                 412
                            2000                    416                     26                  8            450                       2000                 375                     49                     100                 524
                            2001                    445                      8             191               644                       2001                 410                     32                      83                 525
                            2002                    602                      0                  0            602                       2002                 515                      0                     128                 643
                            2003                    567                     49             271               887                       2003                 588                      0                        0                588
   Sub-total                                      2,411                 119                653          3,183      Sub-total                              2,265                     98                     329               2,692
   Average (1999 - 2003)                           482                      24             131               637   Average (1999 - 2003)                    453                    20                       66                 538
   % Breakdown                                   75.7%                 3.7%              20.5%        100.0%       % Breakdown                            84.1%                 3.6%                   12.2%              100.0%


                            2004                    462                     26             220               708                       2004                 467                     65                        0                532
                            2005                    429                     14             285               728                       2005                 407                     39                     385                 831
                            2006                    346                     66             188               600                       2006                 402                     53                      20                 475
                            2007                    459                     78             366               903                       2007                 382                     53                     161                 596
                            2008                    441                     26                  55           522                       2008                 440                   140                      321                 901
   Sub-total                                      2,137                 210               1,114         3,461      Sub-total                              2,098                   350                      887               3,335
   Average (2004 - 2008)                           427                      42             223               692   Average (2004 - 2008)                    420                    70                     177                  667
   % Breakdown                                   61.7%                 6.1%              32.2%        100.0%       % Breakdown                            62.9%                10.5%                   26.6%              100.0%


   1999 - 2008                                                                                                     1999 - 2008
   Total                                          4,548                 329               1,767         6,644      Total                                  4,363                   448                   1,216                6,027
   Average                                         455                      33             177               664   Average                                  436                    45                     122                  603
   % Breakdown                                   68.5%                 5.0%              26.6%        100.0%       % Breakdown                            72.4%                 7.4%                   20.2%              100.0%


  Sources:                                                                                                         Sources:
  Building Permits- City of Kingston Building Department                                                           Completions- CMHC




Watson & Associates Economists Ltd                                                                                                                                           H:\Kingston\2009 DC Study\Growth\Kingston Growth Model 2009 rev
                                                      TABLE 7c


                                                CITY OF KINGSTON
                               HISTORICAL RESIDENTIAL DEMOLITION PERMITS
                                                 YEARS 2002 - 2008


                                                     RESIDENTIAL DEMOLITION PERMITS




                                       Low Density        Medium Density       High Density        Total
               Year                  (Singles & Semis)     (Townhouses)        (Apartments)


                            2002                     14                    0                  0            14
                            2003                     16                    0                  5            21
                            2004                     20                    0                  0            20
                            2005                     20                    0                  0            20
                            2006                     35                    0                  3            38
                            2007                     12                    0                  2            14
                            2008                      5                    0                  0             5
   Sub-total                                       122                     0                  10           132
   Average (2002 - 2008)                             17                   0                   1            19
   % Breakdown                                  92.4%                0.0%               7.6%        100.0%




  Sources:
  Demolition Permits- Statistics Canada Publication




Watson & Associates Economists Ltd                                                                               H:\Kingston\2009 DC Study\Growth\Kingston Growth Model 2009 rev
                                               SCHEDULE 8

                                CITY OF KINGSTON
                   PERSONS PER UNIT BY AGE AND TYPE OF DWELLING
                                   (2006 CENSUS)

        Age of                          LOW DENSITY - Single and Semi-Detached
       Dwelling        < 1 BR          1 BR          2 BR         3/4 BR         5+ BR          Total       Adjusted PPU¹      20 Year Average 1
          1-5              0.000          1.636         2.000          3.116         4.258          2.976             2.91
         6-10              0.000          0.000         1.900          2.888         4.522          2.801             2.74
         11-15             0.000          0.000         2.045          2.908         3.826          2.913             2.86
         16-20             0.000          0.000         2.056          2.951         4.000          2.972             2.94                   2.86
         20-25             0.000          0.000         2.160          2.839         4.353          2.840             2.82
         25-35             0.000          1.429         1.909          2.736         3.659          2.699             2.69
          35+              0.000          1.462         1.822          2.594         3.352          2.463             2.46
         Total             1.727          1.598         1.885          2.764         3.737          2.679

        Age of                       MEDIUM DENSITY - Rows and Apartment in Duplex
       Dwelling        < 1 BR          1 BR          2 BR         3/4 BR         5+ BR          Total       Adjusted PPU¹      20 Year Average 1
          1-5              0.000          0.000         0.000          3.000         0.000          2.516             2.44
         6-10              0.000          0.000         0.000          2.000         0.000          1.841             1.79
         11-15             0.000          0.000         1.643          2.442         0.000          2.239             2.19
         16-20             0.000          1.909         1.727          2.639         0.000          2.358             2.32                   2.19
         20-25             0.000          0.000         2.118          3.025         0.000          2.816             2.79
         25-35             0.000          0.000         2.038          2.741         0.000          2.536             2.52
          35+              0.000          1.323         1.784          2.921         3.464          2.343             2.34
         Total             1.308          1.431         1.822          2.779         3.053          2.404

        Age of                           HIGH DENSITY - Apartments < > 5 Storeys
       Dwelling        < 1 BR          1 BR          2 BR         3/4 BR         5+ BR          Total        Adjusted PPU      20 Year Average
          1-5              0.000          1.395         1.813          0.000         0.000          1.748             1.75
         6-10              0.000          1.176         1.439          0.000         0.000          1.431             1.43
         11 15
         11-15             0.000          1.320         1.627          2.385         0.000          1.583             1.58
         16-20             0.000          1.222         1.844          2.593         0.000          1.674             1.67                   1.61
         20-25             1.526          1.195         1.750          2.179         0.000          1.566             1.57
         25-35             1.152          1.342         1.857          2.192         0.000          1.681             1.68
          35+              1.173          1.246         1.771          2.417         2.455          1.631             1.63
         Total             1.232          1.261         1.777          2.386         2.625          1.634

        Age of                                     ALL DENSITY TYPES
       Dwelling        < 1 BR          1 BR         2 BR      3/4 BR             5+ BR          Total
          1-5              0.000          1.453         1.906          3.109         3.947          2.715
         6-10              0.000          1.276         1.733          2.815         4.522          2.539
         11-15             0.000          1.466         1.688          2.817         3.826          2.402
         16-20             0.000          1.343         1.866          2.896         3.840          2.492
         20-25             1.333          1.221         1.815          2.832         4.158          2.266
         25-35             1.160          1.340         1.876          2.710         3.583          2.326
          35+              1.234          1.277         1.792          2.613         3.315          2.183
         Total             1.267          1.304         1.813          2.745         3.623          2.316

     1. 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
     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                                                        H:\Kingston\2009 DC Study\Growth\Kingston Growth Model 2009 rev
                                                            SCHEDULE 9
                                     PERSONS PER UNIT BY STRUCTURAL TYPE AND AGE OF DWELLING
                                                           (2006 CENSUS)
                                                                FOR
                                                                                     CITY OF KINGSTON
                             3.50
                                    2.98                                      2.91                 2.97
                             3.00                        2.80                                                           2.84 2.82
                                                                                                                                           2.70
      Persons Per Dwelling




                                           2.52                                                                                                   2.54          2.46
                             2.50                                                                         2.36                                                         2.34
                                                                                     2.24

                             2.00                 1.75          1.84
                                                                                            1.58                 1.67                                    1.68                 1.63
                                                                                                                                    1.57
                                                                       1.43
                             1.50

                             1.00

                             0.50

                             0.00
                                           1-5                  6-10             11-15                16-20                20-25              25-35                    35+
                                                                                               Age of Dwelling
                                                                                      Low-Density          Medium-Density       High-Density




Watson & Associates Economists Ltd                                                                                                   H:\Kingston\2009 DC Study\Growth\Kingston Growth Model 2009 rev
                                                                                                              SCHEDULE 10
                                                                                      EMPLOYMENT AND GROSS FLOOR AREA (GFA) FORECAST, 2009 TO BUILDOUT
                                                                                                                               CITY OF KINGSTON




                                                                                          Activity Rate                                                                Employment                                                      Square Feet (Estimated) 1
                                                                         Work at                   Pop'n                                            Work at                      Pop'n
                                                          2
                                                  Pop'n       Primary    Home        Industrial   Related     Institutional   Total      Primary    Home           Industrial    Related     Institutional   Total       Industrial   Commercial     Institutional       Total

                     1996                          107,355       0.003      0.030        0.100        0.192         0.238       0.562        280        3,210           10,700      20,665        25,510      60,365

                     2001                          109,570       0.002      0.033        0.090        0.220         0.230       0.576        180        3,650            9,910      24,145        25,175      63,060

                     2006                          112,707       0.001      0.031        0.091        0.221         0.249       0.594        135        3,520           10,273      24,908        28,110      66,945

                  Mid 2009                         114,963       0.001      0.032        0.093        0.224         0.250       0.600        126        3,636           10,708      25,716        28,788      68,974     14,991,200     10,286,400     20,151,600        45,429,200

                  Mid 2014                         119,495       0.001      0.032        0.097        0.223         0.249       0.602        104        3,828           11,608      26,647        29,803      71,990     16,251,200     10,658,800     20,862,100        47,772,100

                  Mid 2019                         124,988       0.001      0.033        0.098        0.224         0.249       0.604          93       4,091           12,204      28,015        31,086      75,489     17,085,600     11,206,000     21,760,200        50,051,800

                  Mid 2024                         130,747       0.001      0.033        0.099        0.223         0.248       0.603          85       4,345           12,897      29,103        32,439      78,869     18,055,800     11,641,200     22,707,300        52,404,300

           Buildout (Mid 2029)                     136,845       0.001      0.033        0.099        0.220         0.247       0.600          79       4,548           13,485      30,174        33,788      82,074     18,879,000     12,069,600     23,651,600        54,600,200
    Incremental Change                                                                                                                                                                                                                                               -
               1996 - 2001                           2,215      -0.001      0.003       -0.009        0.028         -0.008      0.013        -100         440             -790       3,480           -335      2,695
               2001 - 2006                           3,137       0.000      -0.002       0.001        0.001         0.020       0.018         -45        -130              363        763          2,935       3,885
             2006 - Mid 2009                         2,256     -0.0001     0.0004       0.0020       0.0027        0.0010      0.0060          -9         116              436        809             678      2,029
           Mid 2009 - Mid 2014                       4,532     -0.0002     0.0004       0.0040      -0.0007       -0.0010      0.0025         -22         192              900        931          1,015       3,016      1,260,000        372,400        710,500         2,342,900

           Mid 2009 - Mid 2019                      10,025     -0.0004     0.0011       0.0045       0.0004       -0.0017      0.0040         -33         455            1,496       2,299         2,298       6,515      2,094,400        919,600      1,608,600         4,622,600

           Mid 2009 - Mid 2024                      15,784     -0.0005     0.0016       0.0055      -0.0011       -0.0023      0.0032         -41         709            2,189       3,387         3,651       9,895      3,064,600      1,354,800      2,555,700         6,975,100
    Mid 2009 - Buildout (Mid 2029)                  21,882     -0.0005     0.0016       0.0054      -0.0032       -0.0035      -0.0002        -47         912            2,777       4,458         5,000      13,100      3,887,800      1,783,200      3,500,000         9,171,000
                Annual Average
             1996 - 2001                              443     -0.00019    0.00068     -0.00184      0.00557      -0.00157     0.00265         -20             88          -158        696             -67        539
             2001 - 2006                              627     -0.00009   -0.00042      0.00014      0.00013       0.00393     0.00369          -9          -26              73        153             587        777
           2006 - Mid 2009                            752     -0.00003    0.00013      0.00067      0.00090       0.00033     0.00200          -3             39           145        270             226        676
         Mid 2009 - Mid 2014                          906     -0.00005    0.00008      0.00080     -0.00014      -0.00020     0.00049          -4             38           180        186             203        603        252,000         74,480        142,100          468,580
         Mid 2009 - Mid 2019                         1,003    -0.00004    0.00011      0.00045      0.00004      -0.00017     0.00040          -3             46           150        230             230        652        209,440         91,960        160,860          462,260
         Mid 2009 - Mid 2024                         1,052    -0.00003    0.00011      0.00037     -0.00007      -0.00015     0.00022          -3             47           146        226             243        660        204,307         90,320        170,380          465,007
    Mid 2009 - Buildout (Mid 2029)                   1,094    -0.00003    0.00008      0.00027     -0.00016      -0.00018     -0.00001         -2             46           139        223             250        655        194,390         89,160        175,000          458,550


  1. Square Foot Per Employee Assumptions
              Industrial      1400
             Commercial        400
              Institutional   700
  2. Population Net of Institutional Population




Watson & Associates Economists Ltd                                                                                                                                                                                     H:\Kingston\2009 DC Study\Growth\Kingston Growth Model 2009 rev
                                                                                              SCHEDULE 11
                                                                                           CITY OF KINGSTON
                                                                                  NON-RESIDENTIAL CONSTRUCTION VALUE
                                                                                                   YEARS 1998 - 2008
                                                                                                    (000's 2008 $)


          YEAR                            Commercial                                  Industrial                                Institutional                                        Total
                      1999                                     36,893                                       20,567                                   11,604                                                  69,065
                      2000                                     25,628                                       11,508                                   58,786                                                  95,922
                      2001                                     26,902                                        3,415                                   31,340                                                  61,656
   Sub-total                                                  174,600                                       58,609                                  133,428                                                 366,637
   Average                                                     34,920                                      11,722                                    26,686                                                  73,327
                                New    Improve Additions      Total        New    Improve Additions        Total    New    Improve Additions        Total      New    Improve           Additions           Total
                      2002      63,903 11,539     4,039        79,481       5,265    3,143        0          8,408 33,872    30,948        47,055   111,875   103,039   45,630             51,095           199,764
                      2003      39,928 10,687     3,550        54,165       4,207    1,328        0          5,535   3,186   31,328             0    34,515    47,322   43,343               3,550           94,215
                      2004      20,534 17,771          0       38,304       5,453    1,836        0          7,290   5,771   26,301        30,398    62,470    31,758   45,908             30,398           108,063
                      2005      28,563 17,348        974       46,884       3,079    2,476   1,313           6,868     692    9,501         9,291    19,484    32,334   29,325             11,578            73,236
                      2006      92,046 21,583     4,570       118,199      11,828    9,197      304         21,329 30,837     9,916         1,177    41,930   134,711   40,696               6,051          181,458
                      2007      23,993 16,647     3,181        43,821       2,142    4,685   1,057           7,884 123,788   17,964         8,403   150,154   149,923   39,296             12,641           201,859
                      2008      31,993 17,109     1,569        50,671       1,355    1,279   1,279           3,913   2,690    6,190         8,087    16,967    36,038   24,578             10,935            71,551
   Sub-total                   300,959 112,683   17,883       431,525      33,329   23,945   3,952          61,227 200,836  132,147       104,411   437,394   535,124 268,776             126,247           930,147
   Percent of Total               70%     26%         4%        100%         54%      39%        6%          100%     46%      30%            24%     100%       58%      29%                 14%             100%
   Average                      42,994 16,098     2,555        61,646       4,761    3,421      565          8,747 28,691    18,878        14,916    62,485    76,446   38,397             18,035           132,878

   1999 - 2008
   10 Year Total                                              520,948                                       96,717                                  539,124                                               1,156,789
   10 Year Average                                             52,095                                        9,672                                   53,912                                                115,679
   % Breakdown                                                  45.0%                                         8.4%                                    46.6%                                                 100.0%

SOURCE: STATISTICS CANADA PUBLICATION, 64-001-XIB
Note: Inflated to year-end 2008 dollars using Southam Construction Cost Index




Watson & Associates Economists Ltd                                                                                                                               H:\Kingston\2009 DC Study\Growth\Kingston Growth Model 2009 rev
                                                                                                      SCHEDULE 12
                                         EMPLOYMENT TO POPULATION RATIO BY MAJOR EMPLOYMENT SECTOR, 1996, 2001 AND 2006
                                                                                                  CITY OF KINGSTON


                                                                                                       Year                                  Change

                                                                                         1996          2001             2006         96-01            01-06                           Comments

                                        Employment by industry



                    1.0 Primary Industry Employment                                                                                                                   Categories which relate to

                    1.1 All primary                                                             500           465              260           -35         -205         local land-based resources.

                         Sub-total                                                              500           465              260           -35         -205



96-06               2.0 Industrial and Other Employment

             -90 2.1     Manufacturing                                                      4,670         4,755           3,770              85          -985         Categories which relate

             -23 2.2     Wholesale trade                                                    1,810         1,275           1,580         -535              305         primarily to industrial land

             10 2.3      Construction                                                       2,075         1,985           2,175              -90          190         supply and demand.

             73 2.4      Transportation, storage, communication and other utility           2,630         2,395           3,360         -235              965

             -30         Sub-total                                                        11,185         10,410          10,885         -775              475

               0

               0 3.0 Population Related Employment

             16 3.1      Retail trade                                                       8,315         8,430           8,475          115                  45      Categories which relate

             83 3.2      Finance, insurance, real estate operator and insurance agent       2,765         3,170           3,595          405              425         primarily to population

            255 3.3      Business service                                                   2,910         5,185           5,455        2,275              270         growth within the

            104 3.4      Accommodation, food and beverage and other service                 8,180         9,195           9,215        1,015                  20      municipality.

            457          Sub-total                                                        22,170         25,980          26,740        3,810              760

               0

               0 4.0 Institutional

             67 4.1      Government Service                                                 8,525         8,625           9,195          100              570

            188 4.2      Education service, Health, Social Services                       17,985         17,580          19,865         -405            2,285

            255          Sub-total                                                        26,510         26,205          29,060         -305            2,855

            658          Total Employment                                                 60,365         63,060          66,945        2,695            3,885



                         Population                                                      112,605       114,195          117,207        1,590            3,012



                         Employment to Population Ratio

                         Industrial and Other Employment                                     0.10          0.09            0.09         -0.01             0.00

                         Population Related Employment                                       0.20          0.23            0.23          0.03             0.00

                         Institutional Employment                                            0.24          0.23            0.25         -0.01             0.02

                         Primary Industry Employment                                         0.00          0.00            0.00          0.00             0.00

                         Total                                                               0.54          0.55            0.57          0.02             0.02



                   Source: Statistics Canada Employment by Place of Work

                   Note: 1996-2001 employment figures are classified by Standard Industrial Classification (SIC) Code




Watson & Associates Economists LTD                                                                                                                            H:\Kingston\2009 DC Study\Growth\Kingston Growth Model 2009 rev
                                      APPENDIX B

                       METHODOLOGY FOR CALCULATING
                                  DEVELOPMENT CHARGES




Watson & Associates Economists Ltd.          H:\Kingston\2009 Kingston DC Impost Study.docx
                                                                                                          B-1

APPENDIX B -                          METHODOLOGY FOR CALCULATING
                                      DEVELOPMENT CHARGES

Introduction

This Appendix summarizes the method that must be used to determine the development
charges that may be imposed, pursuant to s.s.5(1) of the Development Charges Act, 1997 and
several related sections. These requirements are illustrated schematically in Figure B-1 and
discussed below.


B.1      Anticipated Development

Virtually all municipalities forecast all development (including DC-ineligible) as the initial stage of
the DC process. That development is used as the denominator in the DC calculation with the
full eligible cost of servicing all such development used as the numerator. Thus, growth-related
servicing costs are equitably spread over all benefiting development, and while the municipality
does not recover DCs from exempt development, the requirements of s.s.5(6)3 are still met. In
this way, capital costs are not offloaded from one type of development to another.



B.2      Ineligible Services

The following services are statutorily ineligible for inclusion in a development charge by-law:


        cultural or entertainment facilities (e.g. museums, theatres, art galleries);
        tourism facilities (e.g. convention centres);
        hospitals;
        waste management services;
        headquarters for the general administration of the municipality.




Watson & Associates Economists Ltd.                      H:\Kingston\2009 Kingston DC Impost Study.docx
                                                                                                                             B-2

                                               FIGURE B-1
                  THE PROCESS OF CALCULATING A DEVELOPMENT CHARGE UNDER THE DCA, 1997


                                                        Anticipated
                                                       Development
                                                                                 1.

     Tax Base,                2. Ineligible Services
    User Rates,
        Etc
                                             Estimated Increase in Need For
                                                                                                 Ceiling Re:
                                                         Service
                                                                                               Increased Need
                                                                                 3.                                   5.

   Subdivision
  Agreements               4. Specified Local Services
                                                                                               Needs That Will
  and Consent                                                                                     Be Met
   Provisions
                                                                                                                      6.


                                                 Estimated Capital Costs
                                                                                        Examination of the Long Term
                                                                            8.
                                                                                         Capital and Operating Costs
                                                                                          For Capital Infrastructure
                                                                                                                       7.


          Less:                                                                          Less:
          Grants, Subsidies and                                                          Uncommitted Excess
          Other Contributions        11.                                                 Capacity                     9.



          Less:                                                                          Less:
          10% Where Applicable                                                           Benefit To Existing Devpt.
                                     12.                                                                             10.


                                                                                       Plus:
                                                                                       Unfunded Works in Place
          Financing, Inflation and
                                                                                       which will Benefit Future
               Investment
                                                                                       Development               13.
             Considerations re
          Cash Flow Calculation
                                                                                       Plus:
                             15.
                                                                                       Credit Obligations to Land-
                                                                                       owners to be Recovered 14.
                                                  DC Net Capital Costs
                                                Costs for new development vs.
                                           existing development for the term of the
                                                    by-law and the balance
                                                         of the period        16.
                                                                                                DC By-law(s)
                                                                                             Spatial Applicability
                                                                                                                     17.
                                                  Amount of the Charge
                                                 By Type of Development
                                           (including apportionment of costs -
                                             residential and non-residential)            Consideration of exemptions,
                                                                              18.              phase-ins, etc.




Watson & Associates Economists Ltd.                                         H:\Kingston\2009 Kingston DC Impost Study.docx
                                                                                                         B-3

B.3       Estimate 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 a link or attribution between the anticipated development and the
(overall) 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.


B.4       Exclude Local Services to be Installed or Paid for by an Owner

Local services related to a plan of subdivision within the area to which the plan relates, to be
installed or paid for by the owner as a condition of approval under s.51 of the Planning Act (or
s.53 re consents) may not be included in the DC by-law and may be recovered as a condition of
such approval. It is, therefore, important that City practice in this area be defined so as to avoid
duplication, omission and/or improper recovery in the case of any particular servicing
requirement.


B.5       Reduction Required by Level of Service Ceiling

This is designed to ensure that the increase in need identified in B.3 does “... not include an
increase that would result in the level of service (for the additional development increment)
exceeding the average level of that service provided in the municipality over the 10-year period
immediately preceding the preparation of the background study ...” O.Reg. 82/98 (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.” As well, O.Reg. 206/04,
which amended O.Reg. 82/98, clarified that the quality level of service measure for DC
purposes is based on undepreciated replacement cost of municipal works.


In many cases, this can be done by establishing a quantity measure in terms of units such as
floor area, land area, or lane kms per capita and a quality measure, in terms of the average cost
of providing such units based on replacement costs. When the quantity and quality factors are

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multiplied together, they produce a measure of the level of service, which meets the
requirements of the Act, i.e. cost per unit.


s.s.4(3) of O.Reg. 82/98 provides for an exception, such that:

         “If the average level of service determined is lower than the standard level of
         service required under another Act, the standard level of service required under
         the other Act may be deemed … to be the average level of service.”

For water, wastewater and storm water management works, the service level is largely
governed by regulatory requirements.


The average 10 year service level calculation sheets for each relevant service component
included in the DC calculation are set out in Chapter 4.



B.6      Council’s Assurance that the Need will be Met

In order for an increase in need for service to be included in the DC calculation, City 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 City’s proposed 2009-2018 capital works program (prepared for planning purposes) was
used as the major basis for the DC calculation; however, information on project definition and
costing has been refined as part of this DC process. A summary of the works for each service
component included in the calculation of the charge is set out in Chapter 4.


B.7      Long Term Capital and Operating Cost Examination

This step calls for an “examination” of the long term “capital and operating costs” for capital
infrastructure to be included in the development charge background study and considered by
Council before passing a DC by-law. This examination is not formally a part of the method that
must be used in calculating the charge, but must be included in the Background Study.




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“Operating costs” refer to all operating or non-capital costs, based on the definition of “capital” in
the DCA, 1997, which would be required for each service. “Capital costs” include the initial cost
of emplacing the work (development charges and other funding sources), as well as the
subsequent cost of repair and replacement.


One standard which could be used in scrutinizing the above-referenced costs is the current level
of operating costs per capita.        Another more detailed standard which goes beyond the
requirements of the Act, would be the anticipated impact on tax levels, as determined by the
application of a full fiscal impact model.


The long term capital and operating cost examination which forms part of this report is
contained in Appendix F.


B.8      Estimate Capital Costs

This step involves the application of capital costs to the increased service needs identified
above. This involves costing actual projects or the provision of service units, depending on how
each service has been addressed.


The capital costs include those incurred or proposed to be incurred by a municipality or local
board directly or by others, on behalf of, and as authorized by, a municipal or local board to:


a)       acquire land or an interest therein (including a leasehold interest)
b)       improve land
c)       acquire, lease, construct or improve buildings and structures
d)       acquire, lease or improve facilities including rolling stock (with 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
g)       costs of the development charge background study


In addition, a development charge background study is required to present a cost allocation for
each service, between those which will benefit new development and those which will benefit
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existing development, incurred during the term of the by-law and beyond. This information is
provided in Chapter 4.


B.9      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 City’s “excess capacity,”
other than excess capacity which is “committed” (discussed below in B.13).


“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.          Where an uncommitted excess capacity deduction is required,
provision is made through deductions in the infrastructure cost tables in Chapter 4.


B.10 Reduction for Benefit to Existing Development

This step involves a further reduction to the need, by the extent to which such an increase in
service (included in the DC calculation) would benefit existing development (i.e. development
existing as of mid 2008). The level of service cap is related, but is not the identical requirement.


It could be argued that, in some cases, new facilities would have an impact on, and provide a
clear benefit to existing development. For example, where a work alleviates a chronic servicing
problem (e.g. water pressure), existing development does benefit. A deduction needs to be
made.


However, 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 no benefit as a result.


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In the case of services such as recreation facilities and community parks, etc., the service is
typically timetabled on a municipal-wide systems basis and the surrounding level of existing
development vs. growth is not necessarily a major consideration. For example, facilities of the
same type may provide different services (e.g. leisure pool vs. competitive pool), different
programs (e.g. hockey vs. figure skating) and different time availability for the same service (e.g.
leisure skating available on Wednesday in one arena and Thursday in another). As a result,
residents will travel to different facilities to access the services they want at the times they wish
to use them, and facility location generally does not correlate directly with residence location.
Even where it does, displacing users from an existing facility to a new facility frees up capacity
for use by others and generally results in only a very limited benefit to existing development.


Further, where an increase in demand is not met for a number of years, a disbenefit to existing
development is involved for a portion of the planning period.


With respect to engineering services, particularly roads, storm drainage works, trunk
watermains and trunk sewers, benefit to existing is not defined on the basis of development that
exists or is under construction at the beginning of every DC Background Study planning period,
if the municipality is in the process of implementing a long term program defined in a previous
DC study.        Unbuilt projects included in previous DC calculations do not become less
development-related over time. Prior DCs were calculated on a particular funding share, which
is unaffected by growth in the benefiting area for those works not yet constructed. Therefore, in
order for the municipality to fund the overall program, the benefit to existing percentage for
unbuilt works included in these programs needs to remain constant from previous DC
calculations.


B.11 Reduction for Anticipated Grants, Subsidies and Other
         Contributions

This step involves reducing the project specific capital costs necessary to provide the increased
services by any capital grants, subsidies and other contributions made or anticipated by Council
in respect of the capital costs and in accordance with various rules as to attribution between the
share related to new vs. existing development, i.e. the reduction is to occur in the same
proportion as the increase in the need for service was reduced in step B.3, unless the person


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making the contribution expressed a clear intention as to the allocation between existing and
new development, at the time the contribution was made. (O.Reg. 82/98, s.6)


B.12 The 10% Reduction

Paragraph 8 of s.s.5(1) of the DCA requires that, “the capital costs must be reduced by 10 per
cent.” This paragraph does not apply to water supply services, waste water services, storm
water drainage and control services, services related to a highway or police and fire protection
services. The primary services that the 10% reduction does apply to are parks, recreation,
libraries and transit, as well as financing costs related thereto.


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 cost sheets in Chapter 4.


B.13 Costs Already Incurred - Eligible Debt and Committed Excess
         Capacity

The DCA, 1997 allows for capital costs previously incurred for oversizing of facilities to service
future growth to be included in the DC calculation, under specific provisions. The capacity must
be “committed excess capacity” under the provisions set out in s.5 of O.Reg. 82/98. In order for
such costs to be eligible, two conditions must apply. First, Council must have funded excess
capacity which is able to meet service needs attributable to future 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
charges processes or in a previous Capital Budget.


Where relevant, this is considered in Chapter 4, in the infrastructure cost summary sheets.




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B.14 Costs Already Incurred - Credits Carried Forward

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.


B.15 Financing, Inflation and Investment Considerations

This step involves increasing the costs set out above for any particular service, where
debenture debt (or other borrowing) is required, and there is an anticipated net financing cost
requirement, or reducing them where interest income will accumulate prior to facility
construction. These are developed in Appendix C and included in the DC and Impost Fee
calculation summaries in Chapters 4 and 5 and the Executive Summary, as applicable.


B.16 DC Net Capital Costs

The DC calculation process requires that the total eligible cost for growth as well as the benefit
to existing (non-growth) share be identified for the by-law period and for the balance of the DC
planning period (Chapter 4).


B.17 DC By-law(s) Spatial Applicability

The DCA, 1997 permits a municipality to use a uniform municipal-wide development charge by-
law(s) for all services, area-specific by-laws to recognize distinctly different servicing situations,
or a combination of the two approaches (s.2(7)(8)). Municipal-wide DCs and area-specific DCs
can be contained within the same DC by-law or separate by-laws may be used.




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The City of Kingston currently has a uniform municipal development charge by-law for all City
services (2004-256).


B.18 Amount of the Charge by Type of Development

s.s.5(1)9 and s.s.5(6) require that rules be developed to determine if a development charge is
payable in a particular case and to determine the amount of the charge. Recommendations for
these rules are contained in Chapter 7.


Fundamentally, this involves allocating the costs which emerge from s.s.5(1)8 as follows:


                                                              Development Types




                                         Residential Share                 Residential Unit Type



      Eligible Costs to be
           Recovered

                                                                            Industrial/Commercial/
                                          Non-Residential
                                                                        Institutional Development
                                               Share
                                                                              Type(s), if required




The maximum cost to be recovered is the amount calculated under paragraphs 2-8 of s.s.5(1).
No “type of development” can be required to pay development charges that exceed the capital
costs attributable to that broad type. Thus, the funding shortfall resulting from a development
charge reduction (and/or exemptions) cannot be made up via higher development charges for
other types of development.




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                                       APPENDIX C
    DEVELOPMENT CHARGE AND IMPOST FEE CASHFLOW
                                      CALCULATIONS




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APPENDIX C – DEVELOPMENT CHARGE AND IMPOST FEE
                              CASHFLOW CALCULATIONS

The development charge and impost fee calculations for the City of Kingston incorporated a two
stage process as follows:


        Calculation of a “base rate” for each of the services by dividing total eligible DC costs (in
         2009$) for residential and non-residential development by the (respective) total
         development quantum over the forecast period.


        Cash flowing the projected costs and revenues by service to consider the impact of
         reserve fund interest and borrowing requirements on the projected DC and Impost rates.


The DC cash flow which was undertaken for the Roads DC for non-residential development, as
well as the Impost cash flows which were undertaken for Water Works and Sewer residential
and non-residential development (as applicable) blend the growth forecast, the eligible capital
expenditures, and respective available reserve fund balances.                This involves an iterative
process to produce a development charge rate which will fully fund the eligible capital program.
Within the calculation, financing in the form of borrowing is incorporated in order to
accommodate the peak expenditure years.            Any interest charges associated with the re-
payment are incorporated in the calculation and recovered through the development charge
quantum, on a “self-financing basis”. Similarly, interest earned on reserve fund balances is also
incorporated in the calculation.


The cashflow period used was 20 years for the Roads service, and 20 years for the Water
Works and Sewer impost services. It should be noted that, although the goal of the cash flow
calculation is to have a positive balance at each year end, and only a limited positive balance at
the end of the cash flow period, consideration has been given to the level of outstanding
borrowing re-payments which will be required beyond the cash flow period (to ensure these are
fully financed through the DC revenue source).




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The cash flowed rates have been carried forward into the Executive Summary and Chapters 5
and 6 as applicable, as the calculated development charge rate for the City of Kingston (as
permitted under s.2(3) of the DCA, 1997), or as the calculated impost fee rate. With preparation
of the August 25th Addendum document, the non-residential cashflow for Roads service
calculated a revised financing cost of $0.35 per square foot. However, in order to maintain the
total non-residential charge at $11.71 per square foot as calculated in the June 29th draft report,
it was decided to only implement $0.23 per square foot of the revised calculated rate.




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                                                                                                                                                                                              Updated C-3


                                                                                                 Table C-1

                      City of Kingston
                      2009 Development Charges Study
                      Roads - Non-Residential


                                  DC Reserve                                   Carrying                  DC Rates                                             Earnings     DC Reserve
                                     Fund       Dev't Related Expenditures Costs (P&I)                       w.                      Revenues    Debenture     (2.5%) /   Fund Closing
                                   Opening                       Inflated    5.25%; 20 Yr    GFA per     Inflation   Anticipated      minus      Financing      Costs     Balance after
                         Year      Balance        Nominal        (2%/Yr)         Term      year (sq.ft.) (2%/Yr)     Revenues      Expenditures Requirement    (5.25%)     Financing
                         2009       2,220,000                            -                                    4.23           -              -                     55,500     2,275,500
                         2010       2,275,500       (150,032)      (153,032)          -       462,260         4.31     1,994,467      1,841,434                   79,905     4,196,840
                         2011       4,196,840        548,410        570,566           -       462,260         4.40     2,034,356      2,604,922                  137,483     6,939,244
                         2012       6,939,244        261,777        277,800           -       462,260         4.49     2,075,043      2,352,843                  202,892     9,494,979
                         2013       9,494,979     (2,667,193)    (2,887,055)          -       462,260         4.58     2,116,544       (770,511)                 227,743     8,952,211
                         2014       8,952,211     (2,304,593)    (2,544,456)          -       462,260         4.67     2,158,875       (385,581)                 218,986     8,785,616
                         2015       8,785,616     (1,250,426)    (1,408,182)          -       462,260         4.76     2,202,053        793,870                  229,564     9,809,050
                         2016       9,809,050     (5,944,283)    (6,828,112)          -       462,260         4.86     2,246,094     (4,582,018)                 187,951     5,414,983
                         2017       5,414,983     (5,436,828)    (6,370,110)          -       462,260         4.96     2,291,016     (4,079,094)                  84,386     1,420,274
                         2018       1,420,274     (9,424,725)   (11,263,418)          -       462,260         5.06     2,336,836     (8,926,582)  7,500,000       17,588        11,280
                         2019          11,280     (5,704,395)    (6,953,626)     (614,642)    462,260         5.16     2,383,573     (5,184,695)  5,200,000          473        27,058
                         2020          27,058        563,553        700,707    (1,040,794)    454,840         5.26     2,392,219      2,052,132                   26,328     2,105,518
                         2021       2,105,518        563,553        714,721    (1,040,794)    454,840         5.36     2,440,063      2,113,991                   79,063     4,298,571
                         2022       4,298,571       (328,838)      (425,387)   (1,040,794)    454,840         5.47     2,488,864      1,022,684                  120,248     5,441,503
                         2023       5,441,503       (600,441)      (792,269)   (1,040,794)    454,840         5.58     2,538,642        705,579                  144,857     6,291,939
                         2024       6,291,939       (600,441)      (808,114)   (1,040,794)    454,840         5.69     2,589,415        740,506                  166,555     7,199,000
                         2025       7,199,000       (596,829)      (819,318)   (1,040,794)    454,840         5.81     2,641,203        781,091                  189,739     8,169,829
                         2026       8,169,829       (596,829)      (835,704)   (1,040,794)    454,840         5.92     2,694,027        817,529                  214,465     9,201,822
                         2027       9,201,822     (1,703,980)    (2,433,703)   (1,040,794)    454,840         6.04     2,747,908       (726,589)                 220,963     8,696,196
                         2028       8,696,196     (1,086,000)    (1,582,096)   (1,040,794)    454,840         6.16     2,802,866        179,975                  219,655     9,095,826
                         2029       9,095,826     (1,075,714)    (1,598,454)   (1,040,794)    454,840         6.29     2,858,923        219,675                  230,142     9,545,643
                         2030       9,545,643       (312,977)      (474,369)   (1,040,794)                    6.41           -       (1,515,163)                 159,095     8,189,575
                         2031       8,189,575            -               -     (1,040,794)                    6.54           -       (1,040,794)                 150,098     7,298,879
                         2032       7,298,879            -               -     (1,040,794)                    6.67           -       (1,040,794)                 127,830     6,385,915
                         2033       6,385,915            -               -     (1,040,794)                    6.80           -       (1,040,794)                 105,006     5,450,127
                         2034       5,450,127            -               -     (1,040,794)                    6.94           -       (1,040,794)                  81,611     4,490,945
                         2035       4,490,945            -               -     (1,040,794)                    7.08           -       (1,040,794)                  57,632     3,507,783
                         2036       3,507,783            -               -     (1,040,794)                    7.22           -       (1,040,794)                  33,053     2,500,042
                         2037       2,500,042            -               -     (1,040,794)                    7.36           -       (1,040,794)                   7,859     1,467,107
                         2038       1,467,107            -               -     (1,040,794)                    7.51           -       (1,040,794)                 (17,964)      408,349
                         2039         408,349            -               -       (426,152)                    7.66           -         (426,152)                 (12,164)      (29,967)
                         Total                   (37,847,228)   (45,913,614) (20,815,880) 9,171,000                   48,032,986                 12,700,000   3,718,226




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                                                                                                                                                                                                               C-4


                                                                                                  Table C-2

                       City of Kingston
                       2009 Development Charges Study
                       Water - Residential


                                  DC Reserve                                   Carrying                                                                         Earnings     DC Reserve
                                     Fund       Dev't Related Expenditures Costs (P&I)                  DC Rates                      Revenues    Debenture      (2.5%) /   Fund Closing
                                   Opening                        Inflated   5.25%; 20 Yr    SDE per   w. Inflation   Anticipated      minus      Financing       Costs     Balance after
                         Year      Balance        Nominal         (2%/Yr)        Term         Year       (2%/Yr)      Revenues      Expenditures Requirement     (5.25%)     Financing
                         2009       2,250,000                            -                                   2,405            -              -                      56,250     2,306,250
                         2010       2,306,250      (4,272,355)   (4,357,803)          -          468         2,453     1,147,197      (3,210,606)     900,000        28,714       24,358
                         2011          24,358      (4,272,355)   (4,444,959)      (73,757)       533         2,502     1,333,961      (3,184,755)   3,200,000          800        40,403
                         2012          40,403      (4,272,355)   (4,533,858)     (336,004)       589         2,552     1,503,865      (3,365,997)   3,400,000        1,435        75,841
                         2013          75,841      (4,272,355)   (4,624,535)     (614,642)       589         2,603     1,533,942      (3,705,235)   3,700,000        1,831        72,437
                         2014          72,437      (4,272,355)   (4,717,026)     (917,866)       589         2,655     1,564,621      (4,070,270)   4,000,000          933         3,099
                         2015           3,099      (1,251,417)   (1,409,298) (1,245,675)         589         2,708     1,595,914      (1,059,059)   1,100,000          589        44,629
                         2016          44,629      (1,161,417)   (1,334,103) (1,335,822)         589         2,763     1,627,832      (1,042,093)   1,000,000          590         3,126
                         2017           3,126         (405,417)    (475,010) (1,417,774)         664         2,818     1,871,232         (21,553)     100,000        1,059        82,631
                         2018          82,631         (405,417)    (484,510) (1,425,970)         664         2,874     1,908,656          (1,824)                    2,043        82,850
                         2019          82,850         (405,417)    (494,201) (1,425,970)         664         2,932     1,946,829          26,659                     2,404       111,914
                         2020         111,914         (178,425)    (221,849) (1,425,970)         664         2,990     1,985,766         337,947                     7,022       456,883
                         2021         456,883         (178,425)    (226,286) (1,425,970)         664         3,050     2,025,481         373,225                    16,087       846,196
                         2022         846,196         (178,425)    (230,812) (1,425,970)         603         3,111     1,876,851         220,069                    23,906     1,090,171
                         2023       1,090,171         (178,425)    (235,428) (1,425,970)         603         3,173     1,914,388         252,990                    30,417     1,373,578
                         2024       1,373,578         (178,425)    (240,137) (1,425,970)         603         3,237     1,952,676         286,569                    37,922     1,698,069
                         2025       1,698,069              -             -     (1,425,970)       603         3,302     1,991,729         565,759                    49,524     2,313,352
                         2026       2,313,352              -             -     (1,425,970)       603         3,368     2,031,564         605,594                    65,404     2,984,350
                         2027       2,984,350              -             -     (1,425,970)       589         3,435     2,024,004         598,035                    82,084     3,664,469
                         2028       3,664,469              -             -     (1,425,970)       589         3,504     2,064,485         638,515                    99,593     4,402,577
                         2029       4,402,577              -             -     (1,425,970)       589         3,574     2,105,774         679,804                   118,562     5,200,943
                         2030       5,200,943                            -     (1,425,970)       -                                    (1,425,970)                  112,199     3,887,172
                         2031       3,887,172                            -     (1,352,213)                                            (1,352,213)                   80,277     2,615,236
                         2032       2,615,236                            -     (1,089,965)                                            (1,089,965)                   51,756     1,577,027
                         2033       1,577,027                            -       (811,328)                                              (811,328)                   29,284       794,984
                         2034         794,984                            -       (508,104)                                              (508,104)                   13,523       300,403
                         2035         300,403                            -       (180,295)                                              (180,295)                    5,256       125,364
                         2036         125,364                            -        (90,148)                                               (90,148)                    2,007        37,224
                         2037          37,224                            -         (8,195)                                                (8,195)                      828        29,857
                         Total                    (25,882,986) (28,029,813) (28,519,395)      12,051                  36,006,767                  17,400,000       923,044




Watson & Associates Economists Ltd.                                                    Revision Date: 26/06/20091:15 AM                                                                     Kingston DC Impost 2009
                                                                                                                                                                                                           C-5


                                                                                                  Table C-3

                      City of Kingston
                      2009 Development Charges Study
                      Water - Non Residential


                                  DC Reserve                                   Carrying                   DC Rates                                             Earnings      DC Reserve
                                     Fund       Dev't Related Expenditures Costs (P&I)                        w.                      Revenues    Debenture     (2.5%) /    Fund Closing
                                   Opening                       Inflated    5.25%; 20 Yr     GFA per     Inflation   Anticipated      minus      Financing      Costs      Balance after
                         Year      Balance        Nominal        (2%/Yr)         Term       year (sq.ft.) (2%/Yr)     Revenues      Expenditures Requirement    (5.25%)      Financing
                         2009       2,750,000                           -                                      3.78           -              -                     68,750      2,818,750
                         2010       2,818,750     (4,850,112)   (4,947,114)            -       435,623         3.86    1,679,586      (3,267,528)    500,000       35,875         87,096
                         2011          87,096     (4,850,112)   (5,046,057)        (40,976)    435,623         3.93    1,713,178      (3,373,855)  3,300,000         1,254        14,496
                         2012          14,496     (4,850,112)   (5,146,978)       (311,419)    435,623         4.01    1,747,441      (3,710,955)  3,700,000           225         3,766
                         2013           3,766     (4,850,112)   (5,249,917)       (614,642)    435,623         4.09    1,782,390      (4,082,169)  4,100,000           317        21,914
                         2014          21,914     (4,850,112)   (5,354,916)       (950,646)    435,623         4.17    1,818,038      (4,487,524)  4,500,000           704        35,093
                         2015          35,093     (1,529,509)   (1,722,476)     (1,319,432)    435,623         4.26    1,854,399      (1,187,509)  1,200,000         1,033        48,618
                         2016          48,618     (1,419,509)   (1,630,570)     (1,417,774)    435,623         4.34    1,891,487      (1,156,858)  1,200,000         1,755        93,515
                         2017          93,515       (495,509)      (580,568)    (1,516,117)    435,623         4.43    1,929,316        (167,369)    100,000         1,496        27,642
                         2018          27,642       (495,509)      (592,179)    (1,524,312)    435,623         4.52    1,967,903        (148,589)    200,000         1,334        80,386
                         2019          80,386       (495,509)      (604,023)    (1,540,703)    435,623         4.61    2,007,261        (137,465)    100,000         1,541        44,462
                         2020          44,462       (218,075)      (271,149)    (1,548,898)    435,623         4.70    2,047,406         227,359                     3,954       275,775
                         2021         275,775       (218,075)      (276,572)    (1,548,898)    435,623         4.79    2,088,354         262,884                   10,180        548,840
                         2022         548,840       (218,075)      (282,103)    (1,548,898)    435,623         4.89    2,130,121         299,120                   17,460        865,420
                         2023         865,420       (218,075)      (287,745)    (1,548,898)    435,623         4.99    2,172,724         336,080                   25,836      1,227,336
                         2024       1,227,336       (218,075)      (293,500)    (1,548,898)    435,623         5.09    2,216,178         373,780                   35,356      1,636,472
                         2025       1,636,472            -              -       (1,548,898)    435,623         5.19    2,260,502         711,604                   49,807      2,397,882
                         2026       2,397,882            -              -       (1,548,898)    435,623         5.29    2,305,712         756,814                   69,407      3,224,103
                         2027       3,224,103            -              -       (1,548,898)    435,623         5.40    2,351,826         802,928                   90,639      4,117,670
                         2028       4,117,670            -              -       (1,548,898)    435,623         5.51    2,398,863         849,964                  113,566      5,081,201
                         2029       5,081,201            -              -       (1,548,898)    435,623         5.62    2,446,840         897,942                  138,254      6,117,397
                         2030       6,117,397            -              -       (1,548,898)                                           (1,548,898)                 133,574      4,702,072
                         2031       4,702,072                           -       (1,507,922)                                           (1,507,922)                  98,703      3,292,853
                         2032       3,292,853                           -       (1,237,479)                                           (1,237,479)                  17,354      2,072,727
                         2033       2,072,727                           -         (934,256)                                             (934,256)                    2,770     1,141,241
                         2034       1,141,241                           -         (598,252)                                             (598,252)                   (2,877)      540,112
                         2035         540,112                           -         (229,466)                                             (229,466)                    1,456       312,102
                         2036         312,102                           -         (131,124)                                             (131,124)                      919       181,897
                         2037         181,897                           -          (32,781)                                              (32,781)                    2,826       151,942
                         2038         151,942                           -          (24,586)                                              (24,586)                    2,508       129,864
                         2039         129,864                           -           (8,195)                                               (8,195)                    2,816       124,485
                         Total                   (29,776,482) (32,285,868)    (30,977,963) 8,712,450                  40,809,525                  18,900,000      928,792




Watson & Associates Economists Ltd.                                                   Revision Date: 26/06/20091:15 AM                                                                  Kingston DC Impost 2009
                                                                                                                                                                                                           C-6


                                                                                                  Table C-4

                        City of Kingston
                        2009 Development Charges Study
                        Wastewater - Non-Residential


                                      DC Reserve                                   Carrying                  DC Rates                                       Earnings     DC Reserve
                                         Fund       Dev't Related Expenditures Costs (P&I)                       w.                Revenues    Debenture     (2.5%) /   Fund Closing
                                       Opening                       Inflated    5.25%; 20 Yr    GFA per     Inflation Anticipated  minus      Financing      Costs     Balance after
                          Year         Balance        Nominal        (2%/Yr)         Term      year (sq.ft.) (2%/Yr)   Revenues Expenditures Requirement     (5.25%)     Financing
                          2009          4,200,000                           -                                     3.01         -          -                    105,000     4,305,000
                          2010          4,305,000    (10,323,712) (10,530,186)            -       435,623         3.07  1,337,448  (9,192,738)  4,900,000       53,966        66,228
                          2011             66,228       (423,712)      (440,830)     (401,566)    435,623         3.13  1,364,197     521,801                    8,178       596,207
                          2012            596,207       (423,712)      (449,647)     (401,566)    435,623         3.19  1,391,481     540,268                   21,659     1,158,134
                          2013          1,158,134       (423,712)      (458,640)     (401,566)    435,623         3.26  1,419,311     559,105                   35,942     1,753,181
                          2014          1,753,181       (423,712)      (467,812)     (401,566)    435,623         3.32  1,447,697     578,318                   51,058     2,382,558
                          2015          2,382,558     (2,992,011)   (3,369,490)      (401,566)    435,623         3.39  1,476,651  (2,294,406)                  30,884       119,036
                          2016            119,036     (2,697,761)   (3,098,879)      (401,566)    435,623         3.46  1,506,184  (1,994,262)  1,900,000        1,798        26,572
                          2017             26,572     (2,697,761)   (3,160,857)      (557,276)    435,623         3.53  1,536,308  (2,181,825)  2,200,000          891        45,638
                          2018             45,638     (2,697,761)   (3,224,074)      (737,571)    435,623         3.60  1,567,034  (2,394,611)  2,400,000        1,208        52,236
                          2019             52,236     (2,697,761)   (3,288,556)      (934,256)    435,623         3.67  1,598,374  (2,624,437)  2,600,000        1,000        28,799
                          2020             28,799         (86,460)     (107,502) (1,147,332)      435,623         3.74  1,630,342     375,508                    5,414       409,721
                          2021            409,721         (86,460)     (109,652) (1,147,332)      435,623         3.82  1,662,949     405,965                   15,318       831,003
                          2022            831,003         (86,460)     (111,845) (1,147,332)      435,623         3.89  1,696,208     437,031                   26,238     1,294,271
                          2023          1,294,271         (86,460)     (114,082) (1,147,332)      435,623         3.97  1,730,132     468,718                   38,216     1,801,205
                          2024          1,801,205         (86,460)     (116,364) (1,147,332)      435,623         4.05  1,764,734     501,039                   51,293     2,353,537
                          2025          2,353,537             -             -      (1,147,332)    435,623         4.13  1,800,029     652,697                   66,997     3,073,231
                          2026          3,073,231             -             -      (1,147,332)    435,623         4.21  1,836,030     688,698                   85,439     3,847,368
                          2027          3,847,368             -             -      (1,147,332)    435,623         4.30  1,872,750     725,418                  105,252     4,678,039
                          2028          4,678,039                           -      (1,147,332)    435,623         4.39  1,910,205     762,873                  126,487     5,567,399
                          2029          5,567,399                           -      (1,147,332)    435,623         4.47  1,948,409     801,078                  149,198     6,517,675
                          2030          6,517,675                           -      (1,147,332)                                     (1,147,332)                 148,600     5,518,943
                          2031          5,518,943                           -        (745,766)                                       (745,766)                 128,652     4,901,829
                          2032          4,901,829                           -        (745,766)                                       (745,766)                  83,393     4,239,456
                          2033          4,239,456                           -        (745,766)                                       (745,766)                  66,834     3,560,524
                          2034          3,560,524                           -        (745,766)                                       (745,766)                  49,860     2,864,619
                          2035          2,864,619                           -        (745,766)                                       (745,766)                  32,463     2,151,316
                          2036          2,151,316                           -        (745,766)                                       (745,766)                  14,630     1,420,180
                          2037          1,420,180                           -        (590,056)                                       (590,056)                   4,527       834,650
                          2038            834,650                           -        (409,761)                                       (409,761)                    (646)      424,242
                          2039            424,242                           -        (213,076)                                       (213,076)                    (580)      210,586
                          Total                      (26,233,915) (29,048,417) (22,946,639) 8,712,450                  32,496,473              14,000,000   1,509,169




Watson & Associates Economists Ltd.                                                    Revision Date: 26/06/20091:15 AM                                                                 Kingston DC Impost 2009
                                      APPENDIX D
   DEVELOPMENT CHARGE AND IMPOST RESERVE FUNDS
                                       STATUS




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APPENDIX D – DEVELOPMENT CHARGE AND IMPOST
                              RESERVE FUNDS STATUS

D.1      Development Charge Reserve Fund Balances

The City of Kingston development charges are maintained in two reserve funds, as set out in
s.s.15 (2) of By-law 2004-256, as follows:


        Roads and Related and Protection
        All other City services (parks and recreation, library, transit, social housing and
         administration)


Development charges are collected and are allocated into sub-accounts for each service as
defined in Schedule “A” of the by-law, and as set out in s.s.15 (3). The City issues reserve fund
statements annually in compliance with s. 43 of the DCA, 1997.


For purposes of the City’s 2009 DC calculation as set out in Chapter 4 and Appendix C of this
report, the City’s DC reserve fund balances have been projected to September 1, 2009 as
follows:




                     City-wide DC Services                               $


                     Protection (Fire and Police)                          504,800
                     Roads and Related                                   6,280,000
                     Transit                                               844,000
                     Parks and Recreation                                  632,800
                     Libraries                                             322,000
                     Social Housing                                         15,000
                     Administration                                         66,400


                     Projected DC Reserve Funds Balance                $8,665,000


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Existing DC reserves have been credited in the calculation of the new development charge as
follows:

         Service                                DC Credit Amount

         Roads                                     $6,000,000

The net available DC reserve fund balance identified above has been incorporated into the cash
flow calculation in Appendix C.


Any remaining DC reserve fund balances held by the City as of the replacement of the existing
by-law(s) should be directed toward:


-        approved projects completed post-passage of the by-law, where the municipality did not
         make eligible draws from the DC fund;

-        the City’s share of the cost of works included in this study, i.e. those costs relating to the
         needs of development 2009 to 2013 where the works involved are yet to be provided;

-        future cash flow requirements.




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D.2      Impost Reserve Fund Balances

The City of Kingston impost fees are maintained in a reserve fund for the financing of future
water works and sewer growth-related capital projects.


For purposes of the City’s 2009 Impost calculation as set out in Chapter 5 of this report, the
City’s Impost reserve fund balances have been projected to September 1, 2009 as follows:




                     City Impost Services (Urban Area)                    $


                     Water Works                                         5,000,000
                     Sewer                                              10,300,000


                     Total Impost Reserve Funds Balance                $15,300,000




         Service                              Impost Credit Amount

         Water Works                             $ 5,000,000
         Sewer                                   $10,000,000

The net available impost reserve fund balances for these services have also been incorporated
into the cash flow calculations in Appendix C.




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                                      APPENDIX E
                         OVERVIEW OF FINANCIAL IMPACT




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                                                                                                         E-1

E - OVERVIEW OF FINANCIAL IMPACT

1.       Affordability Implications
The long term operating and capital cost implications of the services and infrastructure required
for the specific services to which the development charge by-law relates are examined in
Appendix F. These requirements are in addition to the operating cost and capital renewal
needs of the 2008 base population and existing facilities, although a significant portion of the
additional capital and operating costs are the responsibility of the existing population, based on
benefits to be received.


Over the ten year period, City population is expected to increase by 8%, and to increase by 18%
over the period to build-out with a corresponding increase in non-residential development. It is
anticipated that revenues from property taxation, development charges and impost fees (which
cover a portion of development-related capital costs), user charges and other revenue sources
will generally increase proportionately, as a result. These revenue increases will be available to
the City on a gradual basis over time, to assist in funding the foregoing, based on the averages
below:



                      SUMMARY OF SELECTED CITY REVENUE SOURCES
                            2007 Financial Information Return

                              Revenue Category                    $            $/capita
                                 Taxes (total City)        142,257,266           1,206
                     Fees, service charges, donations
                             (including water, sewer)      104,002,610             881
                                      TOTAL                246,259,876           2,087



The capital program contained in this report has generally been kept within the average level of
service attained for each service in the municipality over the previous decade. However, in
some cases, the City may be planning to proceed with projects that contain some oversizing or
enrichment beyond the average level of service. The latter has not been provided for in the



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development charge calculation, but is affordable in principle, if it is proceeded with as the
added revenues referred to above are in hand, or on the basis of long term financing.


2.       Summary of Sources of Capital Cost Recovery
Tables E-1, for City-wide ten year services, and E-2, for DC and Impost services to build-out,
present a high level summary of the sources of cost recovery for the total gross cost of the
capital programs by service category.


The growth-related gross capital expenditures for each service are presented, followed by
information summarizing the portion of the program:
        that is either ineligible to be recovered through development charges due to a level of
         service limitation,
        that is subject to a legislated 10% reduction under the DCA,
        that is planned to be recovered through grants or alternative sources of financing,
        that is planned to be recovered through development charges or impost fees that will be
         charged to future growth beyond the current planning period,
        that is planned to be recovered through taxes or user rates due to the assessment of the
         benefit to be derived by the existing community, or
        that is planned to be financed through the utilization of existing development charge or
         impost reserve funds.
Finally, the financing costs that are estimated to be necessary to provide sufficient cash flow
throughout the planning period are also included in the summary tables.




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                                                                                   Table E-1
                                                                                City of Kingston
                                                                 Developm ent Charge Cost Recovery Sum m ary
                                                                        City-wide Services (2009-2019)

                                                                                   Ineligible      Service Std.    Existing                     10%             DC
        Service                       Description              Growth-Related       re: Level        Eligible      Benefit       Subtotal     Statutory        Eligible
                                                                Capital Exp.       of Service       1999-2008     Deduction                   Deduction      Capital Exp.
                                                                     a                  b            c=a-b            d          e=c-d            f            g=e-f

 Protection (Fire)       Fire Facilities                            5,500,000       (3,115,049)                      (238,495)
                                                                                                      2,884,951                   2,646,456           -         2,646,400
                         Fire Vehicles & Equipment                    500,000                -                              -
 Protection (Police)     Police Vehicles                              532,000         (112,957)                             -
                         Police Officer Outfitting                    276,000          (58,602)       1,736,441             -     1,736,441           -         1,736,400
                         Police Facilities                          1,100,000                -                              -
 Parks and Recreation    Major Indoor Recreation Facilities        27,420,000      (21,789,237)                             -
                                                                                                     15,990,763                  15,990,763    (1,599,076)     14,391,600
                         Parkland Development                      10,360,000                -                              -
 Libraries               Library Collections                        2,750,000                -        3,469,217             -     2,750,000      (275,000)      2,475,000
 Transit                 Transit Facilities                         1,775,000       (1,284,390)                       (82,920)
                         Transit and KAB Vehicles                   6,265,380       (4,533,626)       2,277,644             -     2,194,724      (219,472)      1,975,200
                         Transit Shelters                             200,000         (144,720)                             -
 Social Housing          Social Housing                             6,600,000          (41,000)       6,558,999    (5,903,100)      655,899       (65,590)        590,310
 Administration          General Development Related Studies        1,090,000         (395,000)         695,000             -       695,000       (24,500)        670,500



  TOTAL                                                            64,368,380      (31,474,581)      33,613,015    (6,224,515)   26,669,283    (2,183,639)     24,485,400




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                                                                                                     Table E-2
                                                                                                  City of Kingston
                                                                             Developm ent Charge and Im post Fee Cost Recovery Sum m ary


                                                                           Grants or
                                                                           Alternative         Post         Adjustment re:   Ineligible          Service Std.    Existing        Reserve                            DC
       Service                   Description            Growth-Related     Sources of         Period         Construction     re: Level            Eligible      Benefit           Fund          Financing        Eligible
                                                         Capital Exp.      Financing         Benefit          Standard       of Service           1989-2008     Deduction       Adjustment         Costs        Capital Exp.
                                                              a                 b            c=a-b                d               e            f= a-b-c -d-e        g                h               i         j=f-g-h+i
 CITY-WIDE SERVICES (Build-out)
 Roads and Related Roads                                   239,975,830      (42,500,000)     (34,535,700)     (10,156,898)             -                         (50,493,427)     (6,000,000)      2,292,700
                   Works & Maintenance Facilities           40,000,000                -                -                -    (38,732,227)         154,751,005              -               -               -    100,550,200
                   Corporate Fleet                             700,000                -                -                -              -                                   -               -               -

 IMPOST URBAN SERVICES (Build-out)
 Water            Water Supply and Treatment, Storage       84,300,000       (6,666,000)               -                 -                 -                     (30,906,267)     (5,000,000)
                                                                                                                                                   92,101,505                                      5,973,600     56,633,000
                  Major Watermains                          26,333,000       (8,745,495)      (3,120,000)                -                 -                      (5,535,770)              -
 Wastewater       Wastewater Treatment                      52,300,000                   -             -                 -                 -                     (13,600,000)    (10,000,000)
                     Wastewater - Major Works                3,740,000                   -             -                 -                 -       63,023,200       (330,000)                -     4,181,900     43,275,100
                     Wastewater - Trunks                     6,983,200                   -             -                 -                 -                                -                -

  TOTAL                                                    454,332,030                       (37,655,700)                                                       (100,865,464)    (21,000,000)                   200,458,300




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                                      APPENDIX F
              LONG TERM CAPITAL AND OPERATING COST
                                      EXAMINATION




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F - LONG TERM CAPITAL AND OPERATING COST
         EXAMINATION

1.       Legislative Requirement
Subsection 10(2) of the Act lists as one of the things that a development charge background
study must include:


         “(c) an examination for each service to which the development charge by-law
         would relate, of the long term capital and operating costs for capital infrastructure
         required for the service.”


Considering the various phrases in this paragraph in turn, indicates the following requirements:


•         “an examination,” which involves testing or judging by a standard and some form of
         scrutiny;


•         “for each service to which the development charge by-law would relate,” excludes
         ineligible services and any voluntary excluded services;


•         “of the long term,” generally refers to a period of 10-20 years or possibly the lifetime of
         the asset;


•         “capital and operating costs,” refers to all costs, but not to revenues or to net costs;


•         “for capital infrastructure required for the service,” appears to refer to project specific
         information, possibly aggregated on an overall service basis.


“Operating costs” refer to all operating or non-capital costs, based on the definition of “capital” in
the DCA, 1997, which would be required for each service.


“Capital costs” include the initial cost of emplacing the work (development charges and other
funding sources), as well as the subsequent cost of repair and replacement.



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2.       Services

As indicated in Schedule A of the City’s proposed development charge by-law, charges are
proposed for the following seven services:


(a)      Protection (Fire and Police)
(b)      Roads and Related
(c)      Transit
(d)      Parks and Recreation
(e)      Libraries
(f)      Social Housing
(g)      Administration (i.e. development related studies).



The following sections address, in turn, the operating cost implications of these services, as well
as the capital cost implications (medium and long term). The final section completes the cost
examination with a brief commentary on its affordability.



3.       Annual Operating Cost Implications1

(a)      Protection:

         Fire - The capital program includes consolidation of the fire training centre which is
         scheduled for 2010. The estimated increase in annual expenditures to operate and
         maintain the new facility space is estimated at $50,000 (for training supplies and
         additional utility, insurance and maintenance costs) by the end of the planning period.
         No additional staffing is required to operate this facility.


(b)      Roads and Related:

         Roads - The City’s proposed roads capital program is estimated to add an additional
         410 lane kilometres to the road network. The average annual cost of roads maintenance
         is estimated at $2,100 per lane kilometre, which will add approximately $861,000/year to

1
 It should be noted that the assessment of operation cost implications is based on completion of a long term Capital
Program (at least 10 years and often longer). Accordingly, operating costs will increase gradually as facilities are
added.
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         the City’s annual roads maintenance budget by the end of the period to buildout.
         Maintenance includes costs related to winter control, catchbasins, street sweeping, and
         annual asphalt maintenance programs.


         Works Facilities - The estimated incremental increase in annual expenditures to
         operate and maintain the new facility space is $120,000 (for supplies and additional
         utility, insurance and maintenance costs).


         Works Vehicles - The annual cost to operate and maintain the additional vehicles being
         added to the fleet is estimated at $50,000 per year by the end of the planning period.
         This includes the cost of fuel, licensing, maintenance, insurance, etc.

(c)      Transit:

         The annual cost to provide increased transit service and maintain the proposed new bus
         fleet (20 new buses, including KAB vehicles) is estimated to add approximately
         $900,000/year to the City’s annual budget by the end of ten years (net of fare revenues).


(d)      Parks and Recreation:

         Annual operating costs for developed parkland are estimated at $4,200/acre. The costs
         include staffing, grass cutting, maintaining playground equipment, hydro, irrigation,
         horticulture, sportsfield grooming, tree planting, etc. For the capital program included in
         the DC study, the annual increase in operating cost by the end of the planning period is
         estimated at approximately $295,000.


         The proposed new 25 metre pool is expected to have an annual net operating impact of
         approximately $700,000.




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(e)      Administrative:

         The “capital infrastructure” involved consists of general development related studies.
         They will be administered and implemented by existing staff and have no additional
         operating cost implications.




3.       Long Term Capital Cost Implications
It is anticipated that the City will fund a portion of this long term cost through ongoing
contributions to capital reserves.

(a)      Protection:

         Fire - Over the long term, capital repair and replacement expenditures are anticipated
         based on the following general schedule:


                            Fire Facilities - 30+ years - substantial replacement.


(b)      Roads and Related:

         Roads - The City’s road maintenance program is based on road resurfacing
         approximately every 18 to 20 years at a cost of approximately $24,000/km, and complete
         reconstruction every 25-30 years at a cost of $240,000/km.


                  Works Facilities -     30+ years – substantial replacement.


                  Works Vehicles -        the works vehicles and equipment will a life expectancy of 7
                  to 10 years.


(c)      Transit:

         Transit Fleet      -    conventional transit buses have a life expectancy of 18 to 20 years.
                            -   KAB vehicles have a life expectancy of 10 to 12 years.




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(d)      Parks and Recreation:

         Outdoor parks facilities require substantial replacement at 10 - 15 years.


         Major indoor recreation facilities are anticipated to have a 35+ year life.


(e)      Libraries:

         Library collections require replacement every 8 to 10 years.



(f)      Administrative:

         Development related studies do not, of themselves, have initial or subsequent capital
         cost implications.           The works that they address are covered under other service
         headings.




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                                      APPENDIX G

                              LOCAL SERVICE GUIDELINES




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                                  CITY OF KINGSTON
                              LOCAL SERVICE GUIDELINES


The following guidelines set out in general terms the size and nature of engineered
infrastructure that is included in the City’s Development Charge Study, as a project to be
financed at least in part with development charges, versus infrastructure that is considered to be
a local service, meaning that it is to be a responsibility of the developer, pursuant to a
subdivision or other development agreement.


The following policy guidelines are general principles by which staff will be guided in considering
development applications.             However, each application will be considered on its own merits
having regard to, among other factors, the nature, type and location of the development and any
existing and proposed development in the surrounding area, these policy guidelines, the
location and type of services required and their relationship to the proposed development and to
existing and proposed development in the area, and subsection 59(2) of the Development
Charges Act, 1997.


The detailed engineering requirements for all works are governed by the City’s Official Plan, or if
unspecified in the Official Plan, by the City’s approved detailed engineering standards.




ROADS AND RELATED

For the purpose of interpreting this guideline the following meanings will be used.                         Major
collectors refer to a collector road with a right-of-way width of at least 26 metres, with no
permitted lot frontage and restricted access. Minor collectors are collector roads with a right-of-
way of less than 26 metres, with permitted lot frontage and direct access other than at major
intersections where approved urban design guidelines, traffic or safety concerns require
restrictions within thirty five (35) metres of the intersection.




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1.       Arterial and Collector Roads (including Structures)


         a) New minor collector roads constructed internal to a development are the direct
              responsibility of the developer.


         b) New minor collector roads constructed external to a development, but serving
              primarily to connect a development to the main road network, are a direct developer
              responsibility.


         c)   New, widened, extended or upgraded, major collector roads are considered to be
              development charge projects.


         d) New, widened, extended or upgraded, arterial roads are considered to be
              development charge projects.


         e) All other new roads are considered to be the developer’s responsibility.


2.       Traffic Signals and Intersection Improvements


         a) New signalization or intersection improvements located at the intersection of two
              arterial roads, or at the intersection of a major collector road with an arterial road, or
              at the intersection of two major collector roads and located external to a
              development, the work will be financed through development charges.


         b) New signalization or intersection improvements located at the intersection of a minor
              collector road with an arterial road and external to a development, the work will be
              cost shared by a Benefiting Owners’ Agreement and best efforts of the municipality
              as Subdivision Agreements come forward.


         c)   New signalization or intersection improvements that serve primarily as private site
              entrances or as entrances to developments, are a direct responsibility of the
              developer.




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         d) All other traffic signalization and Intersection improvements required by a new
               development are considered to be the direct responsibility of the developer.
3.       Streetlights


         a) Streetlights located on arterial or major collector roads are considered to be eligible
               for development charge financing, and are included in the roads construction cost
               estimate.


         b) Streetlights on all other new roads are considered to be a direct developer
               responsibility.


4.       Sidewalks


         a) Construction of sidewalks on newly constructed development charge eligible roads
               will be considered to be part of the capital cost of the related development charge
               project.


         b) Construction of new sidewalks on existing roads, including sidewalks external to a
               development that are required to connect the new area to public spaces, are
               considered to be a direct developer responsibility.


5.       Land Acquisition/ Easements


         5.1      For Roads


               a) Land acquisition for arterial or major collector roads, to the minimum widths
                    required according to the City’s Official Plan1, is primarily achieved through
                    dedications under the Planning Act. Lands in excess of the minimum right-of-
                    way widths or in areas where limited or no development is anticipated, and
                    direct dedication is unlikely, the land acquisition is considered to be part of the
                    capital cost of the related development charge project.


1
 The City’s Official Plan will need to be updated to accommodate this requirement. In advance of
necessary revisions to the City’s Official Plan, reference will be made to approved engineering standards.
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               b) Land acquisition necessary to achieve the right-of-way width required by the
                    Official Plan1 for construction of a major collector road will be financed by
                    development charges.


               c)   Purchase of land will be compensated at the then current value to be paid for
                    cash-in-lieu of parkland purposes.


               d) Land acquisition for the purchase of associated easements required for arterial
                    or major collector roads is considered to be part of the capital costs of the
                    related development charge project.


         5.2        For Grade Separations


               a) Land acquisition for grade separations (beyond normal dedication requirements)
                    is considered to be part of the capital cost of the related development charge
                    project.




STORMWATER MANAGEMENT

1.       Storm Sewers, Diversion Channels and Outfalls


         a) Storm sewers constructed internal to a development are a direct responsibility of the
               developer, unless the City requests sewers to be oversized, in which case the
               incremental cost of oversizing will be financed by area-specific development
               charges or through a joint service agreement to be developed by the parties, and
               with the facilitation of the City through its best efforts, based on an area stormwater
               master drainage plan, and with the prior agreement and approval of the City.


         b) Storm sewers, diversion channels and storm sewer outfalls constructed external to a
               development and greater in size than determined by engineering standards to be
               necessary to drain the owner’s lands will be financed by area-specific development
               charges or through a joint service agreement to be developed by the parties, and
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              with the facilitation of the City through its best efforts, based on an area stormwater
              master drainage plan, and with the prior agreement and approval of the City.


         c)   Storm sewers of any size required by a development to connect to an existing local
              trunk storm sewer or outlet shall be the developer’s responsibility.


2.       Stormwater Management Facilities


         Stormwater management facilities shall include all stormwater quantity/quality control
         structures, safety fencing, signage, easements and right-of-way to access facilities.


         a) Stormwater quality and quantity control works are a direct developer responsibility
              except as noted in b) and c) below.


         b) Where the size of the development prevents on-site stormwater management
              facilities or when such facilities are deemed impractical in the sole opinion of the
              Municipality, the Municipality may elect to apply a financial contribution policy based
              on the area of impervious surfaces. Funds acquired in this fashion shall be placed
              in a reserve fund to be used in the construction of future centralized facilities or
              other watershed improvements.


         c)   If a stormwater management project benefits a broad area of development and the
              work provides service to lands owned by two or more unrelated parties, then the
              project may be considered to be financed:
              i.   through area-specific development charges, based on an area stormwater
                   master drainage plan, and with the prior approval of the City1; or
              ii. through a joint service agreement to be developed by the parties, and with the
                   facilitation of the City through its best efforts.




1
  At this time, no centralized Stormwater Management facilities have been identified or designed for
construction by the City. When centralized SWM projects are identified they will be incorporated into an
area-specific development charge for purposes of capital cost recovery (unless, alternatively, a joint
service agreement is entered into by the benefiting parties).
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3.       Erosion Control Measures


         a) Erosion works required to mitigate the impact of a development are a direct
              developer responsibility.


4.       Land Acquisition for Stormwater Management Facilities

         a) Land acquisition for centralized Stormwater Management Facilities, to the size
              required according to the approved engineering standards, is primarily provided by
              dedications under the Planning Act. In areas where limited or no development is
              anticipated, and direct dedication is unlikely, the land acquisition may be considered
              to be part of the capital cost of the related development charge project.


         b) Purchase of land will be compensated at a price to be identified in the applicable
              area-specific development charge by-law.




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A) PARKLAND: CLEAN –EXPECTATION OF THE DEVELOPER
  The City of Kingston expects parkland deeded to the municipality to be environmentally clean
  with all natural hazards removed.


  Clean: Environmental clean, natural hazards removed

  To meet the requirements of the Environmental Protection Act. To limit the risk of liability and provide
    a safe environment for interim and future leisure and active recreational use.


   Environmental Assessment (Class 1) and associated clean-up (if noted as a requirement of draft
    plan or subdivision agreement).

  The clean up of all litter, garbage, construction debris, and environmental hazards as identified under
    Environmental Assessment and by Cultural Services.

  Servicing to Park Boundary:

 Utility Connections - from the street right-of-way to the park property line to make connections into
 the park for water service, electrical service for pathway and storm sewers. A 50-mm water service is
 required for all parks unless a larger service is identified as being required based on the functions and
 size of the proposed park. The cost of a water service over 50mm will be considered oversized and
 therefore funded by impost.




B) DEVELOPMENT CHARGES COSTS CITY RESPONSIBILITY :
   DESIGNED, CLEAN ,DRAINED & GREEN
     The City of Kingston will be responsible for the design of the park, the grading, drainage and
     servicing within the park and the construction of the finished park.

  Park design: Completed park plan, which includes final design, grading and servicing, and
     construction drawings.

  Park Design: Plan incorporating basic neighbourhood or community park features. (Pathways,
    lighting, berming, play equipment, amenity park furniture including public/community art, buffering
    and shade tree requirements. Additional sports field, parking areas and/or special features as
    required.

   Grading Plan: incorporation of grading plan which will provide good site drainage and meet grade
    levels set at periphery of property lines.

  Servicing Plan: provision of water and lighting, sanitary connections as required by the plan or
    elements therein.




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Clean:

Clearing and Grubbing- Removal of all weeds, brush, shrubs, and trees not required in the final
  park design from the site. All trees and plant material identified to be saved are to be protected, in
  an approved manner, before clearing and grubbing commences.




Drain: Parkland Drainage

 Removal of extraneous materials in subgrade: The removal of all debris including rock, stone,
  branches etc. over the diameter of 100mm from the subgrade to a depth of 300 mm (before topsoil
  addition).


 Rough Grade - the basic subgrade configuration of the approved grading plan for the site. The
   excavation and/or filling on the park site as required in accordance with the approved grading plans
   for the park to meet the established grades set at the limit of the park site by the subdivision grading
   plans at the property lines .

Drainage Features: The installation of infrastructure/natural features required to make the park drain
 properly (i.e.) culverts, French drains, swales, ditches, and catch basins. (for surface drainage
 issues).

Fine Grade - all facilities and landscaped areas, as well as, decorative landscape features such as
 berms, smoothing out changes in grade. At end of fine grading the site is ready to accept the topsoil
 to the required depth (100mm) to meet the established grades set at the limit of the park site by the
 subdivision grading plans at the property lines.

Topsoil- The placement of topsoil (100mm) applied to the cleared, clean (300-mm) subgrade
 material, which is within 100 mm of, finished grade levels.

Erosion and Sediment Control: All erosion and sedimentation control measures as required and
 detailed on the approved plan.


Green : Soft and Hard Surface Materials

Fencing- The addition of all necessary fencing to delineate property limits, buffering requirements
and all fencing required for safety reasons.

Seeding and/or Sodding- The application of sod or hydro seed singularly or in combination as
required by the park plan.

Plant material (trees, shrubs) – All new plantings-trees and shrubs.

Pathways and Other Surfaces – all pathways within the park itself and any special feature or

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function surfacing.

Lighting - Pathway lights and all wiring and electrical pedestals, approvals, hook-ups, etc, to
complete the installation and have them energized.
Irrigation : water service within park as required by park components and functions.

Fire Hydrants - includes hydrant, meter chamber, leads, approvals, hook-ups, etc within the park
site itself as required by Fire Code/Ontario Building Code.

Furnishings - park benches, picnic tables, trash receptacles, gazebos, sports equipment/fencing,
public or community art works, play equipment and safety surfacing.

Parking lots – any parking lots shown on the park plan.

Signage – park, directional signage, instructional, interpretative or safety signage.




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                                 UTILITIES KINGSTON
                              LOCAL SERVICE GUIDELINES

Introduction
Impost fees are a mechanism for funding additional major system capacity to service new
growth. All new users will contribute on an equitable basis to fund new service through
additions to the City-wide utility system or expansions to existing services. The charge is
utilized to fund future capacity in the respective systems (water and wastewater), including
treatment plant expansions, pumping or booster stations, and reservoirs, etc. These funds will
not be utilized for ongoing operations or maintenance, or replacement capital of existing
facilities, unless capacity is being increased, and then only to fund the portion relating to the
increase.

In utilizing Impost money for capital infrastructure improvements, the City is guided by principles
of fairness and equity in approach, accountability and transparency in use and reporting, and
ensuring that the capital infrastructure elements which created the Impost fee rates are the
same elements for which capital money is then spent. Therefore, any type of work not
specifically identified in these guidelines as eligible for Impost fee revenues, will not be funded
from that source, as it was not part of the original costing to determine the charge. The
Guidelines will be reviewed at the same time as the Impost calculations are reviewed.

In particular oversizing of infrastructure is specifically excluded from the Impost calculation and
will therefore not be considered eligible for Impost fee funding.

The following Guidelines set out, in general terms, the nature and size of water and sanitary
sewer infrastructure for which Impost fee funding will be utilized. Other infrastructure will be
treated as “local service” to be constructed by the developer, pursuant to a subdivision or other
development agreement (under s.59 of the Development Charges Act, 1997).

The detailed engineering requirements for all works are governed by the approved detailed
engineering standards for City of Kingston/Utilities Kingston. The following policy Guidelines
are the principles by which staff will determine whether works will be eligible for funding from
Impost fee revenue.


General
1.       Where oversizing of infrastructure, whether internal or external to the development is
         required by the City to facilitate future planned servicing (sanitary or water) of other
         lands the cost of servicing shall be the responsibility of the developer or those parties
         which enter in to a joint servicing agreement. The City will in such cases utilize its best
         efforts to assist in the developer and other related (benefiting) parties in achieving a joint
         servicing agreement.


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Water
1.       Booster Stations & Reservoirs:
           a. Facilities identified as being required in a City of Kingston approved Master
               Servicing Plan(s) will be funded from Impost fee revenues to the extent eligible.
           b. Facilities required to service only a proposed development or subsequent phases
               of the same development will not be eligible for any Impost fee funding.
           c. Facilities not identified in City approved Master Servicing Plans but are
               subsequently identified by the City as being required in order to facilitate two or
               more developments and where the potential benefiting lands are owned by two
               or more unrelated parties will be eligible for Impost fee funding.
           d. Land required to facilitate the construction of Booster Stations or Reservoirs
               required by the City will be funded from Impost fee revenue, based on the per
               acre value of land used by the City for cash-in-lieu of parkland purposes under
               the Planning Act.

Wastewater
1.       Lift Stations:
             a. Facilities identified as being required within a City of Kingston approved Master
                 Servicing Plans(s) will be funded from Impost fee revenues to the extent eligible.
             b. Facilities required to service only the proposed development or subsequent
                 phases of the same development will not be eligible for any Impost fee funding.
             c. Facilities not identified within City approved Master Servicing Plans but are
                 subsequently identified by the City as being required in order to facilitate two or
                 more developments and where the potential benefiting lands are owned by two
                 or more unrelated parties will be eligible for Impost fee funding.
             d. Land required to facilitate the construction of a Lift Station required by the City
                 will be funded from Impost fee revenue, based on the per acre value of land used
                 by the City for cash-in-lieu of parkland purposes under the Planning Act, adjusted
                 annually based on the annual index included in the Impost fee bylaw.

Financial
1.       Booster Stations, Reservoirs and Lift Stations:
         The City shall advise any Owner of lands that may be impacted by the location of a
         booster, reservoir or lift station facilities that it may employ the Owner’s Engineer to
         design, construct and administer the work in question or alternatively elect to utilize its
         own forces or agents to design, construct and administer the work. In all cases
         construction of the above-noted facilities will be undertaken in accordance with the
         Purchasing Policies of Utilities Kingston.

2.       Payments
         The City of Kingston shall reimburse for facility construction upon completion of the
         work, satisfactory inspection, testing and approval, issuance of the Preliminary
         Certificate of Approval of the Underground Works, and receipt of as built drawings and
         operation and maintenance manuals as required by regulation in a form acceptable to
         Utilities Kingston.
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