Managing Growth and Development
The desire to live in Prince Edward County has steadily increased over the past several years. In 2021, Prince Edward County’s population of 25,704 reflected an increase of 3.9% between 2016 and 2021. This is a positive trend after a decade of population decline. The Village of Wellington experienced a 12.8% growth rate, while the Town of Picton’s population grew by 2.6%.
While a third of the County’s population is over the age of 65, the County saw a slight increase in the youth population (0 to 14 years) between 2016 and 2021, despite a flat birth rate. The reason for this increase, according to the Vital Signs report, is the move of new families to the County during the pandemic.
This trend is expected to continue as young families migrate out of major cities due to housing prices as well as lifestyle choices. According to a report prepared by the Smart Prosperity Institute, “the growing population of Ontarians in their late 20s and early 30s is driving the demand for family-friendly housing. Families are spreading out across the province looking for a home in which to raise a family or are delaying having children due to a lack of housing options.”
To meet that demand, local developers have projects underway. However, for the first time, developers that typically focus on building in larger cities are also looking to build homes and rental projects in more rural communities like Prince Edward County. Growth and development are guided, managed, and shaped largely by provincial legislation and municipal plans and strategies, which direct that growth to the municipality’s settlement areas.
The pace of growth is also changing. Where typically five years ago we were seeing a few dozen homes built each year, we are now seeing a few hundred homes built each year in the County. Based on the projects moving through the planning system today the municipality will see thousands of new housing units built by 2030. As part of that growth, we will also see a wider mixture of housing types, and rental buildings – an important contribution to making housing more affordable. Anticipating this growth, the municipality is working to ensure that development infrastructure like water and sanitary pipes keeps pace to meet the needs of our growing and thriving community.
Key Facts
The County has received an unprecedented number of development applications over the past five years. As a result, the County is forecasting growth hovering around 1%-2% per year, much higher than the 0.5% increase per year projected in the 2017 Development Charges (DC) Background Study.
Picton
2017 DC forecast: 16 units per year
2022 in process/soon to be in construction: 165 units per year
Wellington
2017 DC forecast: 25 units per year
2022 in process/soon to be in construction: 244 units per year
According to the 2022 Development Charges Background Study, the permanent population in the County is expected to reach 29,637 by early-2033, and 32,6669 by early-2043, resulting in an increase of approximately 3,443 for the 10-year forecast period, and 6,475 persons for the 20-year forecast period respectively.
The 2022 Development Charges Background Study was presented to Committee of the Whole on January 12, 2023. View a recording of the presentation.
A staff report and draft by-law will be brought before Council on February 28, 2023 for decision.
Current Residential Development Trends
Picton
Visit the planning portal to learn more about each active application.
Development Approvals in Picton
Units | Number of persons | Expected Occupancy | Units per Year | Units Approved by Council -- Recently Built | 273 | 655 | 2020-2022 | 137 |
---|---|---|---|---|
Units approved by Council -- Still to be built | 826 | 1,982 | 2023-2028 | 165 |
Units in approval stage | 2,336 | 5,606 | 2028-2033 | 234 |
Note: The number of persons is calculated using the common standard of 2.4 persons per unit.
Only taking into consideration the Council-approved projects, a ten-fold difference exists between what is currently occurring and the previous forecast in the 2017 Development Charges background study:
2017 DC forecast: 16 units per year
2022 In process/soon to be under construction: 165 units per year
Development at this level will consume much of the remaining developable land in Picton’s urban boundary. Furthermore, capacity at the treatment plants and associated infrastructure will need to be increased in order to accommodate all of the proposed growth.
Impact on Infrastructure
To prepare for this Council-approved development, the County is currently preparing a Master Servicing Plan (MSP) for Picton. The MSP, which is expected to be completed in 2023, will review the following infrastructure required to support this development including all lands within the urban boundary:
- Water distribution and treatment
- Wastewater collection and treatment
- Stormwater management
- Transportation and traffic
The County is also considering Picton water supply servicing more broadly through a regional strategy. The study that is currently underway will identify and evaluate drinking water servicing alternatives for the urban centres of Picton, Wellington and Rossmore, as well as for the villages of Bloomfield, Ameliasburgh, Peat’s Point, Consecon and Carrying Place. A preferred water servicing strategy for these areas will be selected to minimize technical, socio-cultural, natural environmental and economic impacts. Learn more about the study.
Wellington
Visit the planning portal to learn more about each active application.
Development Approvals in Wellington
Units | Number of persons | Expected Occupancy | Units per Year | Units Approved by Council | 1,219 | 2,926 | 2024-2029 | 244 |
---|---|---|---|---|
Units in approval stage | 242 | 581 | 2027-2030 | 81 |
Note: The number of persons is calculated using the common standard of 2.4 persons per unit.
Only taking into consideration the Council-approved units, a ten-fold difference exists between what is currently occurring and the previous forecast in the 2017 Development Charges background study:
2017 DC forecast: 25 units per year
2022 in process/2022 In process/soon to be under construction: 244 units per year
The development approved but not yet built had two different developers. Currently, there is one developer overseeing the development.
Impact on Infrastructure
The Wellington Master Servicing Plan, approved in 2021, identifies, evaluates and prioritizes infrastructure upgrades for water, wastewater and stormwater management services. The plan looked at immediate and long-term growth opportunities. The plan informs the construction of infrastructure that is currently underway including the new water tower, which got underway in April 2022 with completion tentatively scheduled for spring 2023.
The following table illustrates the works identified in the Wellington Master Servicing Plan:
Project | Status | Amount | Budget Year |
---|---|---|---|
Wellington Watermain Trunk | Design Phase | $6,550,000 | 2020 |
Wellington Sewermain Trunk | Design Phase | $5,550,000 | 2020 |
Wellington WTP Environmental Assessment (EA), Wellington WWTP EA, Wellington Regional WTP EA | All in progress, completion scheduled for summer 2023 | $625,000 | 2021 |
Wellington Water Reservoir | Construction phase. Completion scheduled for Summer 2023 | $7,200,000 | 2019 |
Wastewater Treatment Plant Equalization Tank - Design | Complete | $650,000 | 2021 |
Wastewater Treatment Plant Equalization Tank - Construction | Construction phase, completion scheduled for Summer 2023 | $5,650,000 | 2022 |
Water Treatment Plant Replacement - Design and Construction | Pending completion of Environmental Assessment | $23,500,000 | 2022 |
Wastewater Treatment Plant Replacement - Design and Construction | Pending completion of Environmental Assessment | $18,150,000 | 2022 |
Bloomfield
Visit the planning portal to learn more about each active application in Bloomfield.
There is minimal development activity in Bloomfield. The Picton water system supplies water to Bloomfield. A trunk main via Loyalist Parkway feeds a water tower, which provides storage and distribution pressure to the village. Since Bloomfield does not have its own water source, any development must be evaluated for capacity at the Picton water treatment plant.
Bloomfield does not have a waste water system and, as such, the entire village relies on septic systems to handle all waste water generated.
Rossmore, Consecon and Carrying Place
Visit the planning portal to learn more about each active application in Rossmore.
Visit the planning portal to learn more about each active application in Consecon.
Visit the planning portal to learn more about each active application in Carrying Place.
Units | Number of persons | Expected Occupancy | Units per Year | Units Approved by Council | 93 | 223 | 2023-2028 | 19 |
---|---|---|---|---|
Units in approval stage | 57 | 137 | 2023-2030 | 81 |
Note: The number of persons is calculated using the common standard of 2.4 persons per unit.
Impact on Infrastructure
Rossmore is supplied water from the City of Belleville via a submarine watermain. The County has secured an ample quantity of water to support development in Rossmore.
Both Carrying Place and Consecon are supplied water from the City of Quinte West. The County has secured an ample quantity of water to support development in both settlement areas.
Consecon is connected to the Carrying Place distribution system via a trunk main along Loyalist Parkway that feeds a water tower in Consecon, which provides storage and distribution pressure.
Neither Rossmore, Carrying Place nor Consecon has a plant for sewage treatment; therefore, all sewage generated must be handled by private septic systems which puts a natural limit on the capacity for new growth. Development has been permitted to proceed on partial services where it is feasible due to the size of the lots and specialized treatment units.
Planning for Growth
The municipality is guided by several principles as it considers and plans for growth.
Meet the provincial regulatory framework
The Planning Act establishes the rules and requirements for all planning applications. The Act also establishes the Provincial Policy Statement and the requirements of municipal Official Plans. The Planning Act provides for planning processes that are fair by making them open, accessible, timely and efficient. The provincial legislation promotes sustainable economic development and a healthy natural environment within a provincial policy framework. And it provides for a land use planning system led by provincial policy while recognizing the decision-making authority and accountability of municipal councils in planning.
The County must follow the obligations set out in the Provincial Policy Statement (PPS). The municipality implements the PPS policies through its Official Plan, zoning by-law, and decisions on planning matters. The PPS requires the municipality to consider growth and provide financially viable infrastructure to support that growth. Where that growth should take place is a municipal decision, informed by the PPS, the County’s Official Plan and various Secondary Plans.
Additional legislation, documents, jurisdictions that the municipality must consider include:
Ontario Water Resources Act
Section 34 of the Ontario Water Resources Act (OWRA) requires anyone taking more than a total of 50,000 litres of water in a day, with some exceptions, to obtain a permit from a Director appointed by the Minister of the Environment, Conservation and Parks.
Species at Risk Act and Endangered Species Act
The Species at Risk Act is federal legislation that provides for the legal protection of wildlife species and conservation of their biological diversity. The Endangered Species Act is provincial legislation that provides:
- Timelines in the law for producing strategies and plans to recover at-risk species
- Tools to help reduce the impact of human activity on species and their habitats
- Tools to encourage protection and recovery activities
Ontario Ministry of Transportation
Development along Highway 62 and portions of the Loyalist Parkway are subject to conditions set out by the Ministry of Transportation, which oversee those highways.
Adhere to municipal plans
The County has developed a number of plans that guide and manage growth and development:
Official Plan 2021
The Official Plan identifies policies and procedures that will influence and manage growth opportunities throughout the County over approximately a 25-year time horizon.
The objectives and policies of the Official Plan are intended to reflect and achieve the long-term vision and principles for the County. The Official Plan must be consistent with the Provincial Policy Statement.
The Official Plan is supported by other master plans for transportation, servicing, and agriculture (Land Evaluation and Area Review [LEAR] Study)
Secondary Plans
Secondary plans function as an Official Plan for a specific area to guide development. Currently, Picton, Wellington, and Rossmore have secondary plans.
These plans indicate locations for certain types of development such as commercial residential, employment, and parks/green spaces. They also set out preferred densities for residential developments (minimum and maximum) and road patterns.
Comprehensive Zoning By-law
The Comprehensive Zoning By-law implements the vision of the Official Plan. The by-law is prescriptive in nature and indicates permitted uses for different land use categories (known as “zones”). The by-law sets minimum standards for development including setbacks, parking, height, loading area, and landscaping buffers.
The County is creating a new comprehensive zoning by-law in 2023 Details about the process and the consultation will be announced in February 2023.
Maintain infrastructure in good condition
The County’s water treatment and distribution systems as well as the wastewater treatment plants are maintained according to provincial legislation and industry standards. The Safe Drinking Water Act, 2002 provides a legislative framework for the County and all municipal drinking water systems across the province. The Act provides a consistent set of provincewide standards and rules to help ensure access to safe, high quality, reliable drinking water.
Invest in a wide range of infrastructure to support the needs of businesses and residents
The County is responsible for a variety of core infrastructure that are essential to the community’s economic prosperity, health and quality of life. Growth is directed to the various settlement areas to help preserve the natural landscape and to minimize conflicts with and preserve agricultural lands. The County has invested heavily in the existing infrastructure in Picton and Wellington, and is able and willing to expand the infrastructure to support more expansive and denser developments, including residential. In addition to water and wastewater infrastructure, the municipality is responsible for roads and bridges, parks and recreational facilities, social housing, and public transit.
Ensure that infrastructure is spread fairly across the County
The municipality has distributed systems for providing safe drinking water and collecting and treating wastewater. Six drinking water treatment and distribution systems under the operational authority of the municipality, while the County operates two wastewater treatment plants. Investments need to be made across all of these systems so that they stay in good working order.
Paying for Growth and Development
The County of Prince Edward, like municipalities across Ontario, follow the principle that growth should pay for growth.
With growth comes an increased tax base and rate base to pay for services. However, the increased municipal revenue from growth may not be enough to maintain existing resources and current service levels due to the strain of inflation and other financial pressures. The municipality must rely on other financial tools to deliver services to more people as well as to maintain and expand infrastructure, such as Development Charges and Connection Charges.
Development Charges and Connection Charges
Development Charges are fees imposed on land development and redevelopment projects. Collecting development charges is the primary revenue tool for funding growth-related capital costs.
The growth-related portion of expanded water and wastewater infrastructure is recovered in two ways in Prince Edward County:
- In the Wellington urban serviced area, costs are recovered through the area-specific Development Charges by-law 89-2021
- All other growth-related costs of water and wastewater services are currently recovered through Connection Charges imposed under the authority of the Municipal Act.
Council approved in March 2023 the Development Charges background study as well as the by-laws to impose Development Charges in the following service areas:
- Services related to a highway
- Ambulance services
- Fire protection services
- Parks and recreation services
- Waste diversion services
- Library services
- Long term care services
Upfront Financing Agreements
The Development Charges Act allows for upfront financing agreements between municipalities and developers. The County has negotiated two upfront financing agreements: the developer pre-pays the development charges at the draft subdivision approval stage, rather than when building permits are issued.
These pre-payments will cover the County’s debt costs for major infrastructure improvements in Wellington (including new water tower, water plant, wastewater plant and associated trunk mains) for at least the next 10 years. This arrangement protects the municipal ratepayer by providing cashflow to pay for construction of new infrastructure upfront rather using tax dollars and waiting to recoup those costs after homes are built and connected to the system. Developers receive the certainty that their developments will be able to connect to water and wastewater infrastructure, when available. Financial securities are also part of the upfront financing agreement to make sure that the where the municipality makes investments in infrastructure to support growth, that will not lay unused for years because a developer chooses not to move forward. This was particularly important in Wellington where so much growth was proposed in a short period of time.
This approach provides the County with financial stability as it maintains and expands core infrastructure to meet the growing demand for housing. The municipality has received two major awards for this approach, which provides a potential template for other smaller municipalities to manage growth and demand for housing.
Additional Financial Tools
Upper Level Government Grants
The municipality receives annually funds from the following programs for capital renewal:
- The Canada Community Building Fund (formerly known as Federal Gas Tax): $1.5 million in funding annually
- Ontario Community Infrastructure Fund – Formula Funding – $2.2 million received in 2023.
Historically these funds are used annually toward a roads/water/wastewater project as the Water/Wastewater Rates Study has $325,000 annually dedicated to rate-supported infrastructure.
Long-term debt
Debt is borrowed money that needs to be paid back (usually with interest) later. Municipal debt is not a revenue tool, but it can be an important capital financing tool. Long-term debt can be used to fund things like capital projects for example, rehabilitating a bridge or constructing a water treatment facility.
Borrowing allows the County to spread out the cost of infrastructure projects over their useful life and allows infrastructure costs to be paid not just by today’s taxpayer, but by future users as well.
The Municipal Act regulates municipalities’ overall ability to borrow money through the Annual Repayment Limit (ARL). The ARL is maximum amount that a municipality can pay in principal and interest payments in the year for new long-term debt and in annual payments for other financial commitments. The County’s ARL is set at 25% of “own-source revenue” (property taxes, user fees and investment income).
The County’s current ARL limit is $15.7 million. The County adopted a debt policy in 2022 that sets out the limit of 15% of the municipality’s annual income to leave 5% for shovel ready projects or in case of an emergency. Council must pass a motion if it wishes to take on debt in excess of this 15% threshold set out in the municipality’s policy.