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BCKGRND

BCKGRND

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Published by: OpenFileTO on Jul 13, 2012
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NOTE
Efforts were made to capture the content and visual representation of submissions tothe Task Force and background papers in digital form on this CD-ROM. Thistechnology was chosen in order to make the material accessible and to allow it to be viewed, word-searched, and printed by the user. In the process, slight variations orerrors in the scanning and representation of characters may have occurred. Therefore, we cannot assume any liability for errors or omissions in the reproduction of thematerial in this digitized format. Users who wish to refer to the original materials may access them through the Office for the Greater Toronto Area, Ministry of Municipal Affairs and Housing, telephone (416) 314-6400.
REMARQUE
Nous nous sommes efforcés de reproduire le contenu des divers documents et desrapports de fond reçus par le Groupe d’étude en format numérique sur le CD-ROM.Nous avons choisi cette technique afin de rendre les documents accessibles à l’usager et de lui permettre de les visualiser, d’y faire des recherches et de les imprimer. Il est possible que de légères erreurs ou omissions se soient produites dans la représentationnumérique de certains caractères lors de la lecture électronique. Par conséquent, nousne pouvons accepter aucune responsabilité pour ces erreurs ou omissions. Les usagersqui souhaitent consulter les documents originaux peuvent téléphoner au Bureau de larégion du grand Toronto, ministère des Affaires municipales et du Logement,au (416) 314-6400.
 
C.N. Watson and Associates Ltd.
Economists
4304 Village Centre CourtTelephone (905) 272-3600Mississauga, OntarioFax (905) 272-3602
L4z 1s2
VIA
FAX
November 6, 1995Mr. John W. Livey, M.C.I.P.Executive DirectorGTA Task Force393 University Avenue
20th Floor -2001
Toronto, OntarioM5G 1E6Dear Sir:Further to your letter of October 4,1995, we are providing preliminary input relative to yourfirst question, namely, does the schedule of development charges that is traditionally usedmake proper provision for servicing cost variances that relate to differences in density? One
of the questions you pose is, “Should there be the same charge for a sixty foot lot versus athirty foot lot?” or alternatively, “Does a three acre apartment site with 200 units demand
the same local Regional services as a 200 unit, 100 acre subdivision site?If it is accepted, in accordance with Section 5 of Regulation 267 of the Development ChargesAct, that a development charge should generally reflect differing servicing costs for different
types of development, then the question is,“Is there a significant difference in municipal
servicing cost if 100 people are accommodated in an apartment building on one acre of landversus 100 people in single-detached units on five acres?”There certainly is a difference in terms of local services, particularly street and pipe lengths.However, development charges are concerned only with net municipal capital costs and the
capital costs of those local works is normally borne by landowners, pursuant to asubdivision agreement or severance condition.The fact that a municipality will incursomewhat higher operating costs and eventually higher capital replacement costs, is notsomething that can be reflected in the development charge under the Act.
The requirement for many municipal services is population-based. That is, water and sewer
capacity usage
r
for
example varies largely with population, and treatment
facilties aregenerally sized accordingly. The same holds true of services such as parks and recreation,
police, hospitals, health and social services, and libraries. Thus, for these services, the capitalcost to the municipality should be similar or identical for the same population, irrespective
of the density of the development in which it is accommodated,
 
C.N. Watson and Associates Ltd.
Mr. John W. Livey-2-
November 6, 1995
One exception to this rule could occur if it was found that, for example, higher densityhousing accommodated population with a substantially different demographic mix thanlower density housing and this difference led to variances in per capita demands for
municipal services. We investigated this subject for the Ministries of Municipal Affairs andHousing in 1990 (“Municipal/School Board Financial Impact of Affordable Housing”) andfound that:
The analysis of Parks and Recreation data and experience ..., revealed a
number of partially counter-balancing findings and suggested that:
q
semi-detached and townhouse dwellers are the most active users of municipal recreation services; apartment dwellers in some cases are
much less active;
q
the higher income group does make significant demands for municipal
recreation programs and facilities, although the services/facilitiesinvolved differ from those widely used by the lower income group;
q
the middle income group ($40,000-$60,000 household incomes) tendsto be the most active participant in municipal programs; lower income
families tend to be much less active.The analysis of Library service usage data and experience revealed a similarpattern to that applicable to recreation.Fire incidence tends to be significantly higher in single family detached
dwellings on a per unit basis, than in higher density forms. Generally, denser
development reduces station and manpower costs per capita, as they aredeployed on an area and/or response time basis. However, high risedevelopment sometimes requireslarger crews and more specializedequipment. Overall, fire costs per capita are most affected by the level of 
volunteers involved, but this is normally a rural vs urban circumstance.
The analysis of police costs and activity levels relative to average income
suggests that lower income areas may require higher police force deployment
and cost. The available data is not conclusive however.
The analysis of road costs indicates that higher density development reduceslocal road lengths and automobile usage declines with income reductions and
housing density increases. Such differences could be expected ultimately totranslate into reduced road costs and/or a higher level of road service for a
given population. These savings are partially offset by additional transit costs.

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