HomeMy WebLinkAboutCST 28-11
City Report To
Executive Meeting
PICKERING Report Number: CST 28-11
203 Date: June 13, 2011
From: Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: Development Charges - Annual Indexing
Recommendation:
1. That Report CST 28-11 of the Director, Corporate Services & Treasurer be
received;
2. That effective July 1, 2011 as provided for in Section 16 of By-law 6978/09, the
Development Charges referred to in Sections 6 and 11 of that By-law be
increased by 1 percent; and,
3. That the appropriate officials of the City of Pickering be given authority to give
effect thereto.
Executive Summary: The Development Charges Act 1997 and Ontario Regulation
82198 and By-law 6978/09 provided for an annual adjustment to keep development
charges revenues current with construction costs, normally an increase based on the
Non-residential Building Construction Price Index. The annual Non-residential Building
Construction Price Index (NRB CPI) for the current indexing year is 3.4%. In the
previous indexing year (2010/2011), the NRB CPI was a reduction of 2.4%. The Council
waived the annual indexing in 2010/2011 and the reduction was not reflected in the
adopted 2010/2011 rates. To maintain the integrity of the annual CPI indexing, it is
proposed that the 2011/2012 rates be adopted at a net increase of 1 Adoption of the
recommendations of this report will put into effect the higher rates for the period July 1,
2011 to June 30, 2012.
Financial Implications: Increasing the development charges based on an increase
in the construction price index (CPI) will assist in keeping the revenues generated in line
with current costs. The residential development charges for single and semi detached
units will increase by approximately $97, other residential charges will increase similarly
and the commercial/industrial charge will increase by approximately $0.04 per square.
foot or $0.41 per square metre based on a net increase of 1
Report CST 28-11 Date: June 13, 2011
Subject: Development Charges- Annual Indexing Page 2
04
Sustainability Implications: This annual increase is necessary to ensure that the
costs of financing growth related construction projects are sustainable.
Background: As provided for in the Ontario Reg. 82198 and in the City's By-law
6978/09, each year the development charges charged by the City for all types of
development may be indexed without amending the By-law. Adoption of the
recommendations contained in this report will allow that increase to take effect July 1,
2011 thereby assisting in keeping revenues in line with the costs that development
charges go towards.
Statistics Canada indicates the increase in the construction price statistics for the most
recently available annual period ending March 31, 2011 of 3.4 percent for Non-
residential Building Construction Price Index (an indicator of our costs of construction)
for the Toronto area. The net change (an increase of 1 after taking into consideration
a reduction of 2.4% from previous year is reflected in the table attached.
At this juncture, the Regional Municipality of Durham (Region) 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 July 1, 2010 until further notice
from the Region. The Education Development Charges will remain unchanged for the
current year.
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. Current and Proposed Development Charges 2011/2012
Prepared By: Approved / Endorsed By:
1c-c5
Caryn Kong, CGA Gillis A. Paterson, CMA
Senior Financial Analyst- Director, Corporate Services & Treasurer
Capital & Debt Management
GAP:ckk
Report CST 28-11 Date: June 13, 2011
Subject: Development Charges- Annual Indexing Page 3
2es
Copy: Chief Administrative Officer
Chief Building Official
Recommended for the consideration
of Pickering City Council
27, 20 l!
Tony Prevedel, P.Eng.
Chief Administrative Officer
ATTACHMENT#=TO REPORT#
City of Pickering
206
Current Residential Development Charges
Effective July 1, 2010
Per Dwelling Unit
Service Single & Apt. Two Other
Category Semi Apt. One Bdrm Dwelling
Detached Bdrm & Larger Units
& Smaller
$
Growth Studies $87 $35 $47 $62
Fire Protection 259 103 140 186
Transportation-
Roads & Related 4,516 1,793 2,445 3,241
Operations 278 110 150 200
Stormwater Management 1,365 542 739 980
Parks & Recreation-
Parkland Dev & Trails 424 168 229 304
Recreation Facilities 2,249 893 1,217 1,614
Libra 516 205 279 370
TOTAL $9,694 $3,849 $5,246 $6,957
Current Non-Residential Development Charges
Effective July 1, 2010
Service Per Sq. Foot Per Sq. Metre
Category
Transportation-Roads & $2.97 $31.97
Related
Stormwater Management 0.90 9.68
Total $3.87 $41.65
207
Proposed Residential Development Charges
Effective July 1, 2011
Per Dwelling Unit
Service Single & Apt. Two Other
Category Semi Apt. One Bdrm Dwelling
Detached Bdrm & Larger Units
& Smaller
$
Growth Studies $88 35 47 63
Fire Protection 262 104 141 188
Transportation-
Roads & Related 4,561 1,811 2,469 3,273
Operations 281 111 152 202
Stormwater Management 1,379 547 746 990
Parks & Recreation-
Parkland Dev & Trails 428 170 231 307
Recreation Facilities 2,271 902 . 1,229 1,630
Libra 521 207 282 374
TOTAL $9,791 $3,887 $5,297 $7,027
Proposed Non-Residential Development Charges
Effective July 1, 2011
Service Per Sq. Foot Per Sq. Metre
Category
Transportation-Roads & $3.00 $32.29
Related
Stormwater Management 0.91 9.77
Total $3.91 $42.06