HomeMy WebLinkAboutCS 28-08
REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 28-08
Date: June 9,2008
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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
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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
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Prepared By:
Approved I Endorsed By:
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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 "
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Thorn s J. Quil}h, RD ", CM~ III
Cl1ief Administrative Officer "-,
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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