HomeMy WebLinkAboutFIN 11-19r;
P1CKE RiNG
Report to
Executive Committee
Report Number: FIN 11-19
Date: June 17, 2019
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Annual Indexing — Development Charges and Seaton Financial Impacts
Agreement
Recommendation:
1. That Report FIN 11-19 of the Director, Finance & Treasurer be received;
2. That effective July 1, 2019 as provided for in By-law No. 7595/17, the
Development Charges (the "DCs") referred to in Schedule "C" of that By-law be
increased by 5.2 per cent;
3. That effective July 1, 2019 as provided for in By-law No. 7595/17, the DCs
referred to in Schedule "D" of that By-law be increased by an annual indexing of
5.2 per cent;
4. That effective July 1, 2019 the payments related to "10 per cent Soft Services" as
provided for by the Seaton Financial Impacts Agreement (FIA) dated November
26, 2015 be increased by an annual indexing of 5.2 per cent; and
That the appropriate City of Pickering officials be authorized to take the
necessary actions as indicated in this report.
Executive Summary: The Development Charges Act 1997 and Ontario Regulation
82/98, and By-law No. 7595/17 provide for an automatic annual adjustment to the City's
development charges based on the Building Construction Price Index in order to keep
development charges revenues current with construction costs. The Building
Construction Price Index for the non-residential buildings construction for the annual
period ending March 31, 2019 is 5.2 per cent. Adoption of the recommendations of this
report will put into effect the higher rate for the period of July 1, 2019 to June 30, 2020.
Attachment 1 provides the DCs by service category for the City-wide area in Pickering
excluding the Seaton lands with the new rates reflecting the annual indexing of 5.2 per
cent.
FIN 11-19 June 17, 2019
Subject: Annual Indexing and Development Charges for Page 2
City -Wide and Seaton Lands
Attachment 2 provides the DCs by service category for the Seaton lands, and the new
rates with the indexing of 52 per cent as well as additional charges applicable to
development in Seaton as approved in the Seaton Financial Impacts Agreement (FIA).
Financial Implications: Increasing the development charges based on an increase
in the construction price index will assist in keeping the revenues generated in line with
current construction costs.
Discussion: As provided for in Ontario Reg. 82/98, s.7, and in section 16 of the
City's By-law No. 7595/17, the development charges charged by the City for all types of
development shall be indexed annually without amending the By-law. Adoption of the
recommendations contained in this report will allow that increase to take effect July 1,
2019, thereby assisting in keeping revenues in line with the costs that development
charges fund.
Note that starting from the first quarter of 2018, Statistics Canada released the first
building construction price indexes that included both new residential and non-
residential buildings construction in Canada. The City continues to use the non-
residential buildings construction price index for the purpose of indexing the DCs
rates.
Statistics Canada indicates that the non-residential buildings construction price index
(an indicator of our costs of construction) for the Toronto area has increased by 5.2 per
cent for the annual period from April 1, 2018 to March 31, 2019. The change is reflected
in the tables attached.
The 2017 DC Background Study was completed in December 2017. DC By-law No.
7595/17, section 16(1)(ii) provides that commencing on July 1, 2019, the rates in
Schedule "C" shall be adjusted annually in accordance with the change in the index for
the most recently available annual period ending March 31. Attachment 4 provides the
change in rates in Schedule "C" from July 1, 2018 to July 1, 2019 based on the 5.2 per
cent indexing. Schedule "C" is applicable to the new DCs rates effective on January 1,
2018 as a result of the 2017 DC Background Study.
The same By-law, under section 16(1) (iii) provides that the rates in Schedule "D" shall
be adjusted on July 1, 2018, July 1, 2019 and July 1, 2020 in accordance with the
change in index for the most recently available annual period ending March 31.
Schedule "D" is applicable to residential apartments dwelling units for the area outside
of Seaton lands. Attachment 5 provides the change in rates in Schedule "D" from July 1,
2018 1 to July 1, 2019 based on the 5.2 per cent indexing. The implementation of new
DCs rates for apartment dwellings units was delayed to accommodate the long-term
planning and construction cycle associated with this development.
FIN 11-19 June 17, 2019
Subject: Annual Indexing and Development Charges for Page 3
City -Wide and Seaton Lands
Continuing from previous years, City staff are including in the DCs annual indexing
report, additional charges applicable to development in Seaton lands as approved in the
Seaton FIA. Sections 4 - 6 of the FIA outline the DC -related financial terms of the
agreement. Note that of all the 3 services collectible based on the Seaton FIA, the
"10% Soft Services" is the only service to be indexed. Attachment 3 provides the further
details on these charges with the 5.2 per cent indexing.
The Seaton DC rates are lower than the City-wide DC rates to reflect the fact that the
Seaton Landowner Group (SLG) is responsible to design, build and pay for the Seaton
internal roads network.
Upon Council's approval of the recommendations contained in this report, the
development charges brochure will be updated to reflect the approved rates. The
updated brochure will be posted on the City's website and made available at various
counters throughout the Civic Complex.
Attachments:
1. City -Wide Development Charges (excludes Seaton Lands) -Effective July 1, 2019
2. Seaton Lands Development Charges and Financial Impacts Agreement (FIA)
Charges -Effective July 1, 2019
3. Seaton Lands — Financial Impacts Agreement (FIA) Charges, Section 5.1
4. Schedule "C" — City of Pickering Schedule of Development Charges
5. Schedule "D" — City of Pickering Schedule of Development Charges for
Residential Apartments Dwelling Units for the Area Outside of Seaton
Prepared By:
G�
Caryn Kong, CPA, CGA
Senior Financial Analyst — Capital &
Debt Management
Approved/Endorsed By:
Stan Karwowski, CPA, CMA, MBA
Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Tony Preyed L , P.Eng.
Chief Administrative Officer
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City of Pickering
City -Wide Development Charges (Excludes Seaton Lands)
Development Charges By-law No. 7595/17
Effective July 1, 2019
1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
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Per Residential Dwelling Unit By Type
Non -Residential Charges
Service Category
Singles or Semi-
Detached
Apt Dwellings
with 2 or more
bdrms
Apt Dwellings
with less than
2 bdrms
Other
Dwellings
Non -Residential per
Sq. Ft of Total Floor
Area
Other Services Related to a
Highway
Protection Services
Parks and Recreation Services
Library Services
Administration Studies
Stormwater Management
Transportation 1
$470
948
5,175
1,158
296
307
6,952
$242
487
2,658
595
153
158
3,570
$177
357
1,950
437
112
117
2,621
$380
766
4,179
935
239
248
5,612
$0.16
0.35
0.42
0.08
0.11
0.11
1.95
Total
$15,306
$7,863
$5,771
$12,359
$3.18
1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
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City of Pickering
Seaton Lands Development Charges and Financial Impacts Agreement (FIA) Charges
Development Charges (DC) By-law No. 7595117 and FIA Article 5
Effective July 1, 2019
DC By-law No. 7595117
Per Residential Dwelling Unit By Type
Non -Residential Charges
Apt
Dwellings
Apt Dwellings
Non -Residential per
Prestige Employment
Singles or Semi-
with 2 or
with less than
Other
Sq. Ft of Total Floor
Land in Seaton (per
Service Category
Detached
more bdrms
2 bdrms
Dwellings
Area 5
Net Hectare)
Other Services Related to a Highway
$470
$298
$210
$380
$0.16
$5,814
Protection Services
948
600
425
766
0.35
12,194
Parks and Recreation Services
5,175
3,270
2,315
4,179
0.42
14,146
Library Services
1,158
732
519
935
0.08
2,779
Administration Studies
296
186
133
239
0.11
3,797
Stormwater Management
307
195
138
248
0.11
3,738
Transportation 1
0
0
0
0
0.00
0
Total DC By-law No.7595/17
$8,354
$5,280
$3,740
$6,747
$1.23
$42,468
Per Sq. Ft of Total
SLG FIA
Floor Area
10% Soft Services 2
$845
$386
$386
$670
$0.098
$0.098
Non Indexed
Municipal Buildings 3
189
86
86
150
n/a
n/a
Community Uses 4
300
137
137
238
n/a
n/a
Total SLG FIA
$1,334
$609
$609
$1,058
$0.098
$0.098
$42,468/ha &
Total Charges -Seaton Lands
$9,688
$5,889
$4,349
$7,805
$1.328
$0.098/sq. ft
Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
2 Breakdown by service category is available upon request. Not applicable to lands owned by the Province. For residential development,
payment is due at subdivision registration except for mixed-use or multi -use or multi -residential development blocks subject to site plan approval.
For all other development, payment is due prior to building permit issuance. Subject to annual indexing.
3 Applicable to the first 11,280 S.D.Es built on SPL Lands, due prior to building permit issuance. No indexing
4 Applicable to the first 11,280 S.D.Es built on SPL Lands to a maximun payment of $3.3 million; due prior to building permit issuance. No indexing
5 Does not apply to prestige employment land in Seaton, as that development is subject to the per net Ha land area charge instead. Applies
to non-residential development in the non -prestige employment land in Seaton.
J:\RPTCOUNC\2019\FIN llck Attachments 1-5
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City of Pickering
Seaton Lands - Financial Impacts Agreement (FIA) Charges, Section 5.1
Section 5.1: 10% Soft Services Contribution*
Effective July 1, 2019
* This contribution is to be indexed with the construction price index prescribed by the DC Act.
** FIA version (October 28, 2013) subsection 5.1 and 5.2 permits the City to charge an additional DC to compensate for the
10% soft services deduction.
The calculation is based on the DC rate multiplied by 11.11% as stated in the FIA agreement subsection 5.2.
1 19.0% of the DC Recoverable share for the Development Related Studies is comprised of costs that are subject to the 10% deduction
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Per Residential Dwelling Unit By Type **
Non -Residential Charges
Apt
Prestige
Dwellings
Non -Residential
Employment Land
Singles or Semi-
with 2 or Apt Dwellings with
Other
per Sq. Ft of
in Seaton (per Sq.
Service Category
Detached
more bdrms less than 2 bdrms
Dwellings
Total Floor Area
Ft)
Development -Related Studies 1
$4.51
$2.05
$2.05
$3.56
0.002
0.002
Parks Development & Trails
214.38
97.97
97.97
170.01
0.018
0.018
Indoor Recreation Facilities
446.73
204.01
204.09
354.18
0.037
0.037
Library
107.38
49.07
49.07
85.16
0.009
0.009
Operations Facilities & Vehicles
72.01
32.91
32.91
57.10
0.032
0.032
Total
$845.00
$386.00
$386.00
$670.00
0.098
0.098
* This contribution is to be indexed with the construction price index prescribed by the DC Act.
** FIA version (October 28, 2013) subsection 5.1 and 5.2 permits the City to charge an additional DC to compensate for the
10% soft services deduction.
The calculation is based on the DC rate multiplied by 11.11% as stated in the FIA agreement subsection 5.2.
1 19.0% of the DC Recoverable share for the Development Related Studies is comprised of costs that are subject to the 10% deduction
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ATM EN .. .
Schedule "C"
City of Pickering Schedule of Developement Charges -DC By-law No. 7595/17
Effective July 1, 2018
#D . U q
Effective July 1, 2019 Indexed at 5.20%
Per Residential Dwelling Unit By Type
Non -Residential Charges
Non -Residential Charges
Apt
2
Non-
Prestige
Non-
Apt
Dwellings
Residential
Employment
Dwellings
Singles or
Dwellings
with less
Employment
per Sq. Ft of
Land in
Dwellings
Semi-
with 2 or
than 2
Other
Total Floor
Seaton (per
Service Category
Detached
more bdrms
bdrms
Dwellings
Area
Net Hectare)
Other Services Related to a Highwa
$447
$283
$200
$361
$0.15
$5,527
Protection Services
901
570
404
728
0.34
11,591
Parks and Recreation Services
4,919
3,108
2,201
3,972
0.40
13,447
Library Services
1,101
696
493
889
0.08
2,641
Administration Studies
281
177
126
227
0.10
3,610
Stormwater Management
292
185
131
236
0.10
3,553
Total Municipal Wide Services
$7,941
$5,019
$3,555
$6,413
$1.17
$40,369
Outside of Seaton Lands:
133
239
0.11
3,797
Transportation 1
6,608
4,175
2,958
5,335
1.86
0
Total Services Outside of
3,738
Total Municipal Wide Services
$8,354
$5,280
$3,740
Seaton Lands
$6,608
$4,175
$2,958
$5,335
$1.86
$0
Seaton
$7,941
$5,019
$3,555
$6,413
$1.17
$40,369
Rest of Pickering -City wide
$14,549
$9,194
$6,513
$11,748
$3.03
1.95
Effective July 1, 2019 Indexed at 5.20%
Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
NA- See Schedule "D" indexed at 3.3%
21mplementation of new DCs rates for apartment dwellings units outside of Seaton lands delayed. Per By-law No. 7595/17 section 16(1)(ii)
Per Residential Dwelling Unit By Type
Non -Residential Charges
2
Apt
2
Non-
Prestige
Apt
Dwellings
Residential
Employment
Singles or
Dwellings
with less
per Sq. Ft of
Land in
Semi-
with 2 or
than 2
Other
Total Floor
Seaton (per
Service Category
Detached
more bdrms
bdrms
Dwellings
Area
Net Hectare)
Other Services Related to a Highw
$470
$298
$210
$380
$0.16
5,814
Protection Services
948
600
425
766
0.35
12,194
Parks and Recreation Services
5,175
3,269
2,315
4,179
0.42
14,146
Library Services
1,158
732
519
935
0.08
2,779
Administration Studies
296
186
133
239
0.11
3,797
Stormwater Management
307
195
138
248
0.11
3,738
Total Municipal Wide Services
$8,354
$5,280
$3,740
$6,747
$1.23
$42,468
Outside of Seaton Lands:
Transportation 1
6,952
4,392
3,112
5,612
1.95
0
Total Services Outside of
Seaton Lands
$6,952
$4,392
$3,112
$5,612
$1.95
0
Seaton
$8,354
$5,280
$3,740
$6,747
$1.23
$42,468
Rest of Pickering -City wide
$15,306
NA
NA
$12,359
$3.18
Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
NA- See Schedule "D" indexed at 3.3%
21mplementation of new DCs rates for apartment dwellings units outside of Seaton lands delayed. Per By-law No. 7595/17 section 16(1)(ii)
ATTACHMENT #
Schedule "0"
City of Pickering
Schedule of Developement Charges for Residential
Apartments Dwelling Units for the Area Outside of Seaton DC By-law No. 7595/17
Effective July 1, 2018
TO REPORT' # LikJ 11— ( 9
Effective July 1, 2019 Indexed at 5.20%
RESIDENTIAL
Apt Dwellings with 2 Apt Dwellings with
Service Category
or more bdrms
Tess than 2 bdrms
Other Services Related to a Highway
$230
$168
Protection Services
463
340
Parks and Recreation Services
2,527
1,854
Library Services
566
415
Administration Studies
145
106
Stormwater Management
150
111
Total Municipal Wide Services
$4,081
$2,994
Outside of Seaton Lands:
Outside of Seaton Lands:
Transportation 1
3,394
2,492
Total Services Outside of Seaton Lands
$3,394
$2,492
Rest of Pickering -City wide
$7,475
$5,486
Effective July 1, 2019 Indexed at 5.20%
Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
RESIDENTIAL
Apt Dwellings with 2 Apt Dwellings with
Service Category
or more bdrms
Tess than 2 bdrms
Other Services Related to a Highway
$242
$177
Protection Services
487
357
Parks and Recreation Services
2,658
1,950
Library Services
595
437
Administration Studies
153
112
Stormwater Management
158
117
Total Municipal Wide Services
$4,293
$3,150
Outside of Seaton Lands:
Transportation 1
3,570
2,621
Total Services Outside of Seaton Lands
$3,570
$2,621
Rest of Pickering -City wide
$7,863
$5,771
Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.