HomeMy WebLinkAboutCS 15-08
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REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 15-08
Date: May 12, 2008
1 U
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
Development Charges Reserve Fund - Statement of the Treasurer for
2007
Recommendation: That Report CS 15-08 of the Director, Corporate Services &
Treasurer respecting the Development Charges Reserve Fund be received and
forwarded to Council for information.
Executive Summary: Section 43 of the Development Charges Act, 1997 (Act)
requires that the Treasurer furnish to Council a Statement in respect of each Reserve
Fund (i.e. for each Development Charge) established under Section 33 of the Act.
Accordingly, the enclosed Attachments 1 to 6 details the activity in the Development
Charges Reserve Fund for the year ended December 31, 2007 in the manner as
prescribed by the Act. As required under Section 43(3) of the Act, the Treasurer will be
forwarding a copy of this same Statement to the Minister of Municipal Affairs and
Housing within 60 days upon furnishing the Statement to the Council.
Financial Implications:
report.
There are no financial implications associated with this
Sustainability Implications: The availability of funding from Development Charges
Reserve Funds assists in sustaining infrastructure related to growth.
Background: Funds are not transferred out of the Development Charges Reserve
Fund for projects until the funds are actually needed, as required under accounting
rules, which ensures that the Reserve Fund continues to earn interest income on these
unspent monies until such time that the actual expense is incurred. Attachment 1
presents the total Reserve Fund balance under "Fund Balance - Prior to Budget
Commitments" of $23,528,008. Taking into account the "Budget Commitments" as at
December 31, 2007 of $3,664,630 the "Fund Balance - After Budget Commitments"
available for future expenditures is $19,863,378.
Report CS 15-08
Date: May 12, 2008
Subject: Development Charges Reserve Fund-Statement
of the Treasurer for 2007
Page 2
1 1
The development charges collected in 2007 were $1,457,284 a decrease of 18% from
amounts collected in 2006 ($1,782,148). Despite an economic condition of low interest
rates and a booming building industry, there is a decrease in the amount collected due
in part to the limited land available for development in Pickering. Attachment 2 provides
a chart showing the 10-year historical pattern of the development charges collected,
notably the sharp decline starting from 2005 and continuing in 2007 compared to those
collected in 2003 and 2004 due to the point mentioned above. The cumulative total
collected for this 1 O-year period was $24,362,224.
The 2007 budgeted funding and revision due to aES 41-07 from this Reserve Fund
was $1,229,990 as detailed on Attachment 3.
The capital expenditures actually incurred in 2007 that were funded from this Reserve
Fund amounted to $1,240,523 (see Attachment 4). These expenditures pertained to
capital projects approved in 2000 to 2007. Attachment 4 provides a summary by
projects of these capital expenditures funded by development charges and other
sources as prescribed by a.Reg. 82/98 Section 12(3).
In 2007, the City undertook additional internal loans of $597,000 from this Reserve
Fund. Attachment 5 provides detailed information on the 2007 internal borrowings and
the purpose for which it was borrowed as prescribed by a.Reg. 82/98 Section 12(2)3.
Interest and principal repayments on 2007 internal loans will commence in 2008. As of
December 31, 2007, the total outstanding internal loans undertaken from 2001 to 2007
are $3,891,812 (see Attachment 6).
Please note that the principal and interest of $1,311,291 paid in 2007 and as indicated
in Attachment 6 are related to 2001 to 2006 internal loans. This amount was funded
from the general tax levy. This Attachment also provides a summary of amount and
source of any money used by the municipality to repay money borrowed from the fund
and interest on such money as required by a.Reg. 82/98 Section 12(2)4,5.
Caution has to be used when budgeting for draws for capital projects due to the limited
availability of land in Pickering and the uncertainty of economic times ahead of us.
Attachments:
1. 2007 Annual Statement of Development Charges Reserve Fund
2. Development Charges Collected 1997 -2007
3. Projects Approved in 2007 Capital Budget to be Funded from Development
Charges Reserve Fund
4. 2007 Actual Capital Expenditures Summarized by Projects
5. 2007 Internal Loans from Development Charges Reserve Fund - New Loans
Undertaken During the Year
Report CS 15-08
Date: May 12, 2008
Subject: Development Charges Reserve Fund-Statement
of the Treasurer for 2007
Page 3
1
6. Development Charges Reserve Fund Internal Loans - Annual Repayment for the
Year Ended December 31,2007
Prepared By:
Approved I Endorsed By:
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Gillis A. Paterson
Director, Corporate Services & Treasurer
Caryn Kong
Senior Financial Analyst
GP:ck
Attachments
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City ~ouncil
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2007 Annual Statement of Development Charges Reserve Fund (unaudited) Development Charges Act S 43
As at December 31,2007 I
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Development Fire: Roads & Storm Water Transit Parkland Recreation Library:
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Related Facilities & Related Management Vehicles * Development Facilities Facilities & Total { .........j
Studies Vehicles & Equip & Trail Materials
$ $ $ $ $ $ $ $ $
Open. Balance as at Jan. 1, 2007 488,480 1,720,061 9,694,037 232,044 395,142 2,104,452 7,413,731 688,525 22,736,472 A
Less Previous Year FS adjustment' (395,142) (395,142)
Revised Opening Balance 488,480 1,720,061 9,694,037 232,044 0 2,104,452 7,413,731 688,525 22,341,330
REVENUES
Dev, Charges Received 31,863 112,196 632,324 15,136 0 137,270 483,584 44,911 1,457,284
Returned to source 0 0 0 0 0 0 0 0 0
Interest Received- Internal Loans 494 1,741 9,812 235 0 2,130 7,504 697 22,613
Interest Received-External Investments 20,733 73,007 411,461 9,849 10,200 89,323 314,674 29,224 958,471
53,090 186,944 1,053,597 25,220 10,200 228,723 805,762 74,832 2,438,368
EXPENDITURES
Capital Expenditures (294,266) (817,154) (115,700) (13,403) (1,240,523)
Current Expenditures (967) (967)
Transfer to Region' - (10,200) (10,200)
Total Expenditures (967) (294,266) (817,154) (115,700) (10,200) (13,403) (1,251,690) :::;
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Fund Bal.- Prior to Budget Commitments (GL) 540,603 1,612,739 9,930,480 141,564 0 2,319,772 8,219.493 763,357 23,528,008 ()
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Budget Commitments, Unspent Am!. Dec, 31,07 (60,903) (524,800) (202,912) ~
(2,792,187) - (83,828) (3,664,630) rT;
Fund Bal. After Budget Commts Dec, 31, 07 479,700 1,612,739 7,138,293 (383,236) 2,116,860 8,135,665 763,357 19,863,378 "j..
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A Amount reported last year, prior to year-end financial statement adjustment
. Total amount remitted to the Region $405,342 due to the transfer of Transit to the Region ($395,142 + $10,200)
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Development Charges Collected
1997 -2007
$
4.,000.,000
3.,500.,000
3.,000.,000
2.,500.,000
2.,000.,000
1.,500.,000
1.,000.,000
500.,000
0
1997
1999 2001 2003 2005 2007
Year
I ~ City's Sharel
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oLTOREPORT# L 'J 1<;-.) S
Projects Approved in 2007 Capital Budget to be Funded from
Development Charges Reserve Fund
Source of Funding GL Dev. Charge D.C-City's Parkland Debt Total
Account Res. Fund Share Res. Res. Fund
Projects:
Parks
Sunbird Trail 5780.0706. $ 171,000 $ 29,000 $ $ 200,000
Playground Equipment-Clearside 5780.0707. $ 45,315 $ 7,685 $ 147,000 $ 200,000
$ 216,315 $ 36,685 $ 147,000 $ 400,000
External Subdivision ( Roads)
Town Centre West 5321.0701 158,400 52,800 211,200
Walnut Lane Extension 5321.0702 90,000 30,000 120,000
Valley FarmlTillings Rd Bridge 5321.0703 315,000 35,000 350,000
Wharf SUWest of Liverpool 5321.0705 5,000 20,000 25,000
Liverpool Rd/Annland St to Wharf St 5321.0706 $ 19,575 $ 58,725 $ 78,300
$ 587,975 $ 196,525 $784,500
External Subdivision ( Sidewalks & Streetlights)
Brock Rd/Third Concession/Taunton 5321.0707 $ 200,000 $ 200,000 $ 400,000
Kingston RdNalley Farm 5321.0708 40,950 40,950 81,900
$ 240,950 40,950 200,000 $ 481,900
External Subdivision ( Traffic Signals) )
Pickering Parkway/Portland Crt 5321.0709 48,750 16,250 65,000
$ 48,750 $ 16,250 $ 65,000
External Subdivision ( Storm Water Management)
Storm Water Mgmt Works 5321.0710 $ 136,000 $ 24,000 $ 160,000
$ 136,000 $ 24,000 $ 160,000
Total $1,229,990 $314,410 $147,000 $200,000 $1,891,400
2007 Actual Capital Expenditures Summarized by Projects
O.Reg. 82/98
Section 12(3).
GL
Account
Dev. Charges D.C-City's Fed. Gas
Reserve Fund Share Res Tax RF
Parkland Easement Property
Res Fund Reserve Taxes
Debt!
Loan
Total
Fire
Addition & Renovations to Station 5
Total -Fire
Parks
Sunbird Trail
Playground Equipment-Clearside
Total.Parks
External Subdivision
Road Construction:
Valley Farm/ Pickering Parkway
Finch Ave. to Brock 450m east
Road Urbanization-Finch/Petticoat Crk
Woodview Ave. North
Woodview Ave. South to Hydro Corridor
Finch North to Rosebank
Woodview Ave/Finch. to Hydro Corridor
Kingston Rd/Rosebank Rd
Sidewalk & Streetlioht
Bayly-Brock to Alliance Rd
Bayly-Alliance Rd to GO Station
Brock/Third Concession/Taunton
Storm Water
Rouge Park Neighbourhood
Total Ext. Subdivision Works
5340.0607 $ 294,266 $ 14,468 $ 643,621 $ 952,356
$ 294,266 $ $ 14,468 $ 643,621 $ 952,356
5780.0706 $ 3,710 $ 629 $ 4,339
5780.0707 9,693 1,644 33,063 . 44,400
$ 13,403 $ 2,273 $ $ 33,063 $ $ $ 48,739
5321.0320
5321.0501
5321.0502
5321.0505
5321.0506
5321.0514
5321.0601
5321.0602
5321.0604
5321.0605
5321.0707
5321.0021
24,350 - 24,350
2,035 50,889 52,924
10,436 10,436 20,872
97,875 97,875 195,750
469,615 469,614 939,229
13,128 13,129 26,257
32,476 32,4 76 64,952
2,992 2,991 1,024 7,007
652,907 677,410 1,024 - 1,331,341
2,449 2,449 4,898
2,172 2,172 4,344
157,500 157,500 315,000
162,121 4,621 - - 157,500 324,242
115,700 11 ,800 22,500 150,000
115,700 11,800 22,500 150,000
$ 930,728 $ 693,831 $ 1,024 $ 180,000 $ 1,805,583
Sidewalk
401 Pedestrian Bridge/Town Centre/GO 5323.0501 $ 2,126 $ 13,109 $ 6,024 $ 21,259
$ 2,126 $ 13,109 - $ 6,024 $ 21,259
Total Spent
$ 1,240,523 $ 696,104 $
13,109 $ 33,063 $ 6,024 $
15,492 $ 823,621 $ 2,827,937
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"'''r:NT#~TO REPORT#1'..~ 15-:")(1
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CITY OF PICKERING
2007 INTERNAL LOANS
TO BE BORROWED FROM THE DEVELOPMENT CHARGES RESERVE FUND
2007 Budget
Cost Centre Proiect Number Reference Terms Description Amount
Fire 5340.0702.6173 Various POs 5- Year Furniture & Equipment $ 150,000
07 -2240-002 -01 for Station 5 addition
Parks 5780.0701.6129 OES 39-07 10-Year Repair & Resurface Bev 134,000
07 -2718-001-01 Morgan running track
5780.0712.6178 OES 23-07 5-Year Two Utility Tractors 86,000
07 -2718-004-01
Civic Complex 5700.0704.6181 8- Year Pattern Concrete-Entrance 38,000
07 -2124-005-01 Civic Complex
Arena 5715.0703.6181 PO 270468 5- Year Replacement of concrete 50,000
07 -2715-005-02 floor on Pad 2-Don Beer
Design only
Community Centre 5719.0702.6181 OES 34-07 10-Year Repave parking lot 139,000
07 -2719-005-05 Westshore
Comm Ctr
Total Internal Loans $ 597,000
Repayment of loans commencing in 2008
Development Charges Reserve Fund Internal Loans -
Annual Repayment for the Year Ended December 31,2007
Total
4,426,565
(1,131,753)
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Source of Funding
Annual Charges (Principal & Interest)
Gen. Tax Levy
Outstanding
Principal
2007
Dec. 31,2007
$
315,794
274,039
55,790
328,077
52,640
292,284
140,354
496,148
1,955,126
(0)
86,747
43,653
66,956
22,387
30,781
387,839
638,363
65,565
o
4,909
70,474
130,097
25,302
23,789
179,188
31,092
106,953
40,418
178,463
35,208
61,231
22,962
94,142
59,656
273,199
38,000
150,000
220,000
189,000
597,000
3,891,812
O.Reg. '82/98 S.
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Interest
2007
$
(15,183)
(13,175)
(2,682)
(15,773)
(9,633)
(14,052)
(6,748)
(23,854)
(101,100)
(344)
(4,456)
(2,243)
(4,601)
(1,150)
(1,581)
(19,925)
(34,300)
(3,275)
(7,858)
(245)
(11,378)
(6,367)
(1,368)
(1,164)
(8,899)
(1,519)
(5,225)
(1,974)
(8,718)
(1,955)
(3,400)
(1,275)
(5,228)
(3,285)
(15,143)
(179,538)
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Gen. Tax Levy
(1,311,291 )