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HomeMy WebLinkAboutCS 28-08 REPORT TO EXECUTIVE COMMITTEE Report Number: CS 28-08 Date: June 9,2008 (1 ..~ \ j '" From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Development Charges - Annual Indexing Recommendation: 1. That Report CS 28-08 of the Director, Corporate Services & Treasurer be received; 2. That effective July 1, 2008 as provided for in Section 16 of By-law 6349/04, the Development Charges referred to in Sections 6 and 11 of that By-law be increased by 7.2 percent being the annual increase in the Construction Price Statistics for the Non-residential Building Construction Price Index as reported by Statistics Canada for the year ended March 31,2008; and, 3. That the appropriate officials of the City of Pickering be given authority to give effect thereto. Executive Summary: Adoption of the Recommendations of this report will put into effect for the period July 1, 2008 to June 30, 2009 increases that are provided for in the Development Charges Act 1997 and Ontario Regulation 82/98 and By-law 6349/04 and are needed to finance construction costs under the City's Development Charge Background Study adopted by Council in July 2004. This is an annual adjustment needed to keep revenues current with costs. Financial Implications: Increasing the Development Charges by 7.2 percent will assist in keeping the revenues generated thereunder in line with current costs. The residential development charges for single and semi detached units will increase by approximately $669. Other residential charges will increase similarly and the commercial/industrial charge will increase by approximately $0.19 per square foot or $2.06 per square metre. Sustainability Implications: This annual increase is necessary in order to ensure that the costs of financing growth related construction projects are sustainable. Report CS 28-08 Date: June 9, 2008 Subject: Development Charges - Annual Indexing "' n II 1 I] it Page 2 Background: As provided for in the Ontario Reg. 82/98 and in the City's By-law 6349/04, each year the development charges charged by the City for all types of development may be increased without amending the By-law. Adoption of the recommendations contained in this report will allow that increase to take effect July 1, 2008 thereby assisting in keeping our revenues in line with the costs that development charges go towards. Statistics Canada indicates the increase in the Construction Price Index for the most recently available annual period ending March 31, 2008 of 7.2 percent for Non- residential Building Construction Price Index (an indicator of our costs of construction) for the Toronto area. The change is reflected in the table attached. The City's obligations under Recommendations contained in the same report CS 21-04 (2004 Development Charges Background Study) to Council in the form of contribution to the Development Charges - City's Share should also increase by 7.2 percent. The 2008 Budget contained $480,000 of contribution for this purpose and a budgeted draw of $226,950 thus, decreasing the 2008 year-end balance to $998,294. Significant contributions in 2009 and after are necessary in order to bring the fund balance to an acceptable level. The Commercial/Industrial Development Charge remains at the Council approved portion pertaining to Roads and Related only with approximately 50 percent of the justified cost recovery amount, meaning the City has to contribute to the balance. At this juncture, the Region of Durham has not finalized the annual indexing of the development charges the City collects on their behalf. The City will continue to use rates prescribed as effective from January 1, 2008 until further notice from the Region. The Education Development Charges will remain unchanged for the current year The main changes are to update the amounts to reflect recommendations contained in this report. Upon receiving the final figures from the Region for the portion of the development charges the City collects on their behalf, the brochure will be revised and distributed. The brochure will be posted on the City's website and made available at various counters throughout the Civic Complex. Attachments: 1 . Current and Proposed Development Charges 2008/2009 Report CS 28-08 Date: June 9, 2008 Subject: Development Charges - Annual Indexing Page 3 I-- I :~) Prepared By: Approved I Endorsed By: ~~~ (~ ) ~.:-2 ~- --;"0 ~'-,., ~-- ./ _~- c~ Gillis A. Paterson Director, Corporate SeNices & Treasurer Caryn Kong Senior Financial Analyst GAP: ck Copy: Chief Administrative Officer Chief Building Official Recommended for the consideration of Pickering City Council " I .'" Thorn s J. Quil}h, RD ", CM~ III Cl1ief Administrative Officer "-, --"--..~ .........,~, in[ iUO TTACHMENT#-L- TO REPORT#.tS-Q W~ ,:)sr CITY OF PICKERING CURRENT RESIDENTIAL DEVELOPMENT CHARGES Effective January 1, 2008 (Revised due to reduction in Transit) PER DWELLING UNIT Service Single & Apt. Two Other Category Semi Apt. One Bdrm Bdrm Dwelling Detached ($) & Smaller ($) & Larger ($) Units Growth Studies $129 $48 $74 $105 Fire Protection 406 152 230 328 Transportation 4,479 1,665 2,544 3,637 Parks & Rec 3,708 1,381 2,108 3,012 Library 590 220 334 478 TOTAL $9,312 $3,466 $5,290 $7,560 Non-Residential - $2.67 per sq. foot or $28.72 per sq. metre PROPOSED RESIDENTIAL DEVELOPMENT CHARGES Effective July 1, 2008 PER DWELLING UNIT Service Single & Apt. Two Other Category Semi Apt. One Bdrm Bdrm Dwelling Detached ($) & Smaller ($) & Larger ($) Units ($) Growth Studies $138 $51 $79 $113 Fire Protection 435 163 246 352 Transportation 4,801 1,785 2,727 3,898 Parks & Rec 3,975 1,480 2,260 3,229 Library 632 236 358 512 TOTAL $9,981 $3,715 $5,670 $8,104 Non-Residential - $2.86 per sq. foot or $30.78 per sq. metre $ Increase: Residential $669 249 380 $544 Non- $0.19 per sq. $2.06 per sq. Residential foot metre