HomeMy WebLinkAboutCST 17-12 city 4 ti: Report To
Executive Committee
PICKERING Report Number: CST 17-12
Date: June 11', 2012 1 5 5
1u
From: Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: Development Charges —Annual Indexing
Recommendation:
1. That Report CST 17-12 of the Director, Corporate Services & Treasurer be
received;
2. That effective July 1, 2012 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 3.3 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
82/98 and By-law 6978/09 provide for an annual adjustment to the City's development
charges based on the Non-residential Building Construction Price Index in order to keep
development charges revenues current with construction costs.The Non-residential
Building Construction Price Index (CPI) for the current indexing year is 3.3%. Adoption
of the recommendations of this report will put into effect the higher rates for the period
July 1, 2012 to June 30, 2013.
Financial Implications: Increasing the development charges based on an increase
in the 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 $323, other residential charges will increase similarly and the
commercial/industrial charge will increase by approximately $0.13 per square foot or
$1.39 per square metre based on an increase of 3.3%.
Discussion: As provided for in the Ontario Reg. 82/98 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,
Report CST 17-12 June 11, 2012
156
Subject: Development Charges- Annual Indexing Page 2
2012 thereby assisting in keeping revenues in line with the costs that development
charges fund.
Statistics Canada indicates the increase in the construction price statistics for the most
recently available annual period ending March 31, 2012 of 3.3 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.
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, 2011 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 2012/2013
Prepared By: Approved / Endorsed By:
Caryn Kong, CGA Gillis A. Paterson, CMA
Senior Financial Analyst - Director, Corporate Services & Treasurer
Capital & Debt Management
GAP:ckk
Copy: Chief Administrative Officer
Recommended for the consideration
of Pickering City Council
1//41.
8E
Tony Prevedel, P.Eng.
Chief Administrative Officer
ATTACHMENT#_I TO REPORT#,CST/7-1.2
157
City of Pickering
Current Residential Development Charges
Effective July 1, 2011
Per Dwelling Unit
Service Single & Apt. One Apt. Two Other
Category Semi Bdrm Bdrm Dwelling
Detached & Smaller & Larger Units
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
Library 521 207 282 374
Total $9,791 $3,887 $5,297 $7,027
Current Non-Residential Development Charges
Effective July 1, 2011
Service Per Sq. Foot Per Sq. Metre
Category
Transportation-Roads &
Related $3.00 $32.29
Stormwater Management 0.91 9.77
Total $3.91 $42.06
158
Proposed Residential Development Charges
Effective July 1, 2012
Per Dwelling Unit
•
Service Single & Apt. One Apt. Two Other
Category Semi Bedroom Bedroom Dwelling
Detached & Smaller & Larger Units
Growth Studies $91 $36 $48 $65
Fire Protection 271 107 146 194
Transportation — Roads
& Related Operations 4,712 1,871 2,550 3,381
290 114 157 209
Stormwater Management 1,424 565 771 1,023
Parks & Recreation-
Parkland Dev & Trails 442 176 239 317 •
Recreation Facilities 2,346 932 1,270 1,684
Library 538 214 291 386
Total $10,114 $4,015 $5,472 $7,259
$ Increase
Residential $323 $128 $175 $232
Proposed Non-Residential Development Charges
Effective July 1, 2012
Service Per Sq. Foot Per Sq. Metre
Category
Transportation-Roads &
Related $3.10 $33.36
Stormwater Management 0.94 10.09
Total. $4.04 $43.45
$ Increase
Non-Residential $0.13 $1.39