HomeMy WebLinkAboutFIN 09-13From: Paul Bigioni
Director, Corporate Services & City Solicitor
Report to
Executive Committee
Report Number: FIN 09 -13
Date: May 13, 2013
Subject: Development Charges Reserve Fund - Statement of the Treasurer for the
year ended December 31, 2012
Recommendation:
That Report FIN 09 -13 of the Director, Corporate Services & City Solicitor respecting
the Development Charges Reserve Fund be received for information.
Executive Summary: Section 43 of the Development Charges Act, 1997 (Act)
requires that the Treasurer furnish Council with a financial statement relating to
development charges by -law and reserve funds established for each service as
established under Section 33 of the Act. Accordingly, the enclosed Attachments 1 to 5
detail the activity of the Development Charges Reserve Fund for the year ended
December 31, 2012 in the manner as prescribed by the Act. As required under Section
43(3) of the Act, the Treasurer will forward a copy of this same statement to the Minister
of Municipal Affairs and Housing within 60 days of providing the statement to Council.
Financial Implications: Starting from 2011, and continuing into 2012, the new
development in the Duffin Heights area has resulted in a spike in development charges
revenues. Development charges revenues collected in 2012 were $3,417,020. This
amount, even though lower than 2011 ($4,923,492) revenues, is still relatively high
compared to the period prior to the development in the Duffin Heights area.
The Reserve Fund remains at a healthy balance of approximately $37.4 million pending
the use of money from the fund for qualified projects. The funds are well managed with
investment returns consistently exceeding market indicators. Investment income is
added to the balance of each fund as such income is earned.
Discussion: Funds are not transferred out of the Development Charges Reserve
Fund for projects until the funds are actually needed, as required by applicable
accounting rules. This ensures that the Reserve Fund continues to earn interest
income on the unspent monies until such time as actual expenses are incurred.
Attachment 1 shows the total Reserve Fund balance of $37,486,012. Taking into
account the "Budget Commitments" as at December 31, 2012 of $6,941,753, the fund
balance available for future expenditures is $30,544,259.
Report FIN 09 -13
May 13, 2013
Page 2
The development charges collected in 2012 were $3,417,020. Starting from 2011 and
continuing into 2012, the new development in the Duffin Heights neighbourhood has
resulted in a spike in development charges revenues. Though the amount collected in
2012 is lower than in 2011 by 20 %, the 2012 receipts are still higher than for period
prior to development of the Duffin Heights area. Attachment 2 provides a chart showing
the 10 -year historical pattern of development charges collected. The cumulative total
collected for this 10 -year period was approximately $24.3 million
The 2012 projects approved based on the 2009 Development Charges Background
Study from the Reserve Fund was $1,631,756. Attachment 3 provides detailed
information on these approved projects. However, the expenditures actually incurred in
2012 that were funded from the Reserve Fund were only $775,240 (see Attachment 4).
These expenditures pertained to capital and current projects approved between 2000
and 2012. Attachment 4 provides a summary of the project expenditures funded by
development charges and other sources as prescribed by Ontario Regulation (O. Reg..)
82/98 Section 12(3).
Attachment 5 provides detailed information on repayments pertaining to outstanding
internal loans undertaken as required by O.Reg. 82/98, Section 12(2)3, 4 and 5. The
principal and interest paid in 2012 pertaining to loans undertaken from the period of
2002 to 2009 was $309,029, and was funded from property taxes.
New internal loans undertaken in 2012 from the Development Charge Reserve Fund
amounted to $2.58 million. Repayment of the 2012 internal loans will commence in
2013. As of December 31, 2012, the total outstanding amount of such internal loans is
$3,113,545.
Attachments:
1. 2012 Annual Statement of Development Charges Reserve Fund
-2. Development Charges Collected 2003 — 2012
3. Projects Approved in 2012 to be Funded from Development Charges Reserve
Fund
4. 2012 Actual Capital and Current Expenditures Summarized by Project
5. Development Charges Reserve Fund Internal Loans - Annual Repayment for the
year ended December 31, 2012
Report FIN 09 -13
Prepared By:
Caryn Kong, CGA
Senior Financial Analyst - Capital &
Debt Management
CK
Recommended for the consideration
of Pickering City Cogncil
Tony Prevedel, P.Eng.
Chief Administrative Officer
May 13, 2013
Page 3
Approved /Endorsed By:
Stan Karwowski, MBA, CMA
(Acting) Division Head, Finance & Treasurer
Paul Bigi
Director,
4, 2.v L3
Ic
ces & City Solicitor
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ATTACHMENT #.I-TO REPORT #.,I! oq -13
Projects Approved in 2012 to be Funded from
Development Charges Reserve Fund
Description of Project
Source of Funds
Dev Charges
D.0 -City's Share
Capital Budget
Account
Reserve Fund
Reserve
Other
Total Approved
New Operations Centre - Consulting &
Design
5315.1201.
$25,000
$1,475,0001
$1,500,000
Duffin Heights -Third Concession Road
additional fudns required (due to updated
cost estimate)
5320.1213.
69,000
206,000
275,000
Land Purchase Finalization of property
ownership matters respecting the
intersection of Clements Road and
Church Street
5320.1224.
100,000
100,000
200,000
DH -11 Duffin Heights - North Collector
(90110) East of Brock Rd. (Oversizing)
5321.1201.
113,040
12,560
125,600
TC -18 Kingston Rd. South Side
(50/50) Liverpool Rd. to Glenanna Rd.
5321.1202.
82,500
82,500
165,000
BR-4 Brock Rd. East Side (50/50)
Dellbrook To Finch Ave.
5321.1203.
71,000
71,000
142,000
WO -2 Kingston Road - South Side
(50/50) Rosebank Rd. to Steeple Hill
5321.1204.
99,000
99,000
198,000
B -15 Krosno Creek - Erosion Control
of Valley Wall (16/54 +30) Reytan Blvd.
to Parkham St.
5321.1205.
29,760
156,240
186,000
TC-4 Pickering Parkway at (75/25)
Glenanna Rd. - Signalization
5321.1206.
131,906
43,969
175,875
Duffin Heights - (Mattamy) New Park
Constructio
5780.1211.
91,600
308,400
1 400,000
Duffin Heights - Village Green (Mattamy)
5780.1220.
30,945
119,055
150,000
Total 2012 Capital Budget
$843,751
$1,198,724
$1,475,000
$3,517,475
Revised Funding based on Report to
Council, Memo & Note -to -File
West Shore Boulevard - portion of
work related to storm sewer
5320.1118.
14,479
28,485
276,213
z 319,179
BI -20 - Krosno Creek Stormwater Facility
K25
5321.0910.
716,000
1,034,000
1,750,000
W -6 (Partial) Amberlea Creek Erosion
Control EA, Design, Approvals and
Construction (south of Bayly Street) -
erosion control of valley wall
5321.1005.
57,526
421,857
2,250,617
2,730,000
Total 2012 based on Revised
Financing
788,005
1,484,342
2,526,830
4,799,179
Grand Total
1,631,756
2,683,066
4,001,830
8,316,654
Notes
A Revised source of funds based on Memo dated Aug. 5, 2012 T -18 -2012. From debt to property taxes
B Revised source of funds based on Note- to-File dated Aug. 23, 2012. Sufficient DC- City's Shr R & DCRF built -up.
C Revised source of funds based on CS21 -12. Sufficient City's Shr R & DCRF built -up for E4 component.
1 Unfinanced Capital Outlay as at Dec. 31, 2012
2 Taxes
ATTACHMENT #PTO REPORT #,6L_J09'i3
2012 Actual Capital and Current Expenditures Summarized by Projects
O. Reg. 82/981
Section 12(3).
$16,579
$35,107
-City's Grant -
5,080
15,239
GL
Dev Charges
Share Invest in Property
1,920
5,761
Account
Reserve Fund
Reserve Ont Taxes
Other Total
Capital Budget
$0
26,353
Welrus Street- Sprucehill Rd D -5 5321.1103
88,496
Operations Centre
57,680 b
411,665
Total Ext Subdivision -Roads
$124,511
Environmental Assessment
5315.0904.
$13,496
$25,704
$39,200
New Operations Ctr- Design
5315.1201.
3,307
0
194,701 a 198,008
Total Operations Centre
$0 $173
$16,803
$0 $25,704 $0
$194,701 $237,208
Roads
WestShore Blvd -Storm Sewer pi 5320.1118. $13,338 $26,676 $256,383 $296,397
Land Purchase Clements Rd 5320.1224. 100,000 100,000 200,000
Total Roads $113,338 $126,676 $496,397
Parks
Duffin Heights -new Park 5780.1211. $10,834 36,474 $47,308
Total Parks $10,834 $36,474 $47,308
External Subdivision Works
Road Construction:
Kingston Rd, Whites 650 m east 5321.0017.
$18,528
$16,579
$35,107
Rosebank Bridge to CNR Track 5321.0507.
5,080
15,239
$433,380
20,319
Liverpool Road- Annland St B -3 5321.0706.
1,920
5,761
-
7,681
Woodview Urbanization 5321.0911
10,487
15,866
$0
26,353
Welrus Street- Sprucehill Rd D -5 5321.1103
88,496
265,489
57,680 b
411,665
Total Ext Subdivision -Roads
$124,511
$318,934
$0 $0 $57,680
$501,125
Sidewalks & Streetlights
$12,918
Kingston Rd (Partial) ES 2000 VA 5321.0019
$107
$0
$0 $173
$280
Altona Rd, Sheppard, Strouds R 5321.0909.
1,351
1,651
11,977
3,002
Total Ext SubdivSidewalks & Streetlig
$1,458
$1,651
$0 $0 $173
$3,282
Traffic Signals
Squires Beach Road BI -15 5321.0632.
$10,253
$3,422
$0
$0
$13,675
Pickering Parkway - East of Live 5321.1006.
$433,380
$144,459
$0
$577,839
Total Ext Subdivision - Traffic Signals
$443,633
$147,881
$0
$0
$0
$591,514
Storm Water Mamt (SWM)
Krosno Creek SWM " 5321.0910.
$5,296
$7,622
$12,918
Amberiea Creek Erosion Control 5321.1005.
4,018
67,900
$71,918
Oil Grit Separators 5321.1107.
11,977
107,789
$119,766
Total SWM
$21,291
$183,311
$0
$0
$0
$204,602
Grand Total -Ext Subdivision Works
$590,893
$651,777
$0
$0
$57,853
$1,300,523
Grand Total - Capital Budget
$731,868
$814,927
$25,704
$0
$252,554
$2,081,435
Current Budget-Studies
Library- Building Plan 2745.2392.
$10,845
$0
$4,647
$15,492
Finance- City & Seaton DC Stu( 2127.2392.
989
465
1,454
Finance- SeatonFIS 2127.2392.
31,538
31,538
63,076
Total- Current Budget
$43,372
$0
$0
$36,650
$0
$80,022
Grand Total - Capital & Current
$775,240
$814,927
$25,704
$36,650
$252,554
$2,161,457
Notes
Revised source
a Unfinanced Capital Outlay
of funds
b Property Owner
0 Internal Loan
-
ATTACHMENT # PTO REPORT# IAf 09 'l3
Development Charges Reserve Fund Internal Loans - o.Reg.82/98
Annual Repayment for the year ended December 31, 2012 s 12(2)3,4,5
Year
Undertaken
Projects By Function (FIR)
Outstanding
Principal
Jan. 1, 2012
New Issue
Principal
Repayment
2012
Outstanding
Principal Dec.
31, 2012
Interest
2012
Annual
Charges
(Principal &
Interest) *
2002
Storm Water Management
11,962
(11,962)
-
(466)
(12,428)
2002
IParks
12,091
(12,091)
-
(471)
(12,562)
2002
Sidewalks
9,431
(9,431)
-
(368)
(9,799)
2002
Roads
59,746
(59,746)
-
(3,268)
(63,014)
2003
Rec.Complex -Core
1,774
869)
905
(75)
(944)
2003
Roads
23,691
(11,602)
12,089
(995 )
(12,597)
2004
Parks
60,552
(60,552)
-
(2,646)
(63,198)
2007
Gen Govt (Civic Complex)
20,669
(4,831)
15,838
(930 )
(5,761)
2007
Protective Services (Fire)
30,677
(30,677)
-
(1,264)
(31,941)
2007
Rec Facilities (Community Ctr)
88,411
(13,466)
74,945
(4,694 )
(18,160)
2007
Parks
72,942
(12,983)
59,959
(4,119 )
(17,102
2009
Fire (Heavy Rescue Vehicle)
414,902
(45,093)
369,809
(16,430)
(61,523)
2012
Protective Services (Animal
Services)
120,000
120,000
-
2012
Protective Services (Fire)
150,000
150,000
-
2012
Rec & Culture (Library)
1
250,000
1 250,000
1
-
2012
Rec & Culture (Parks)
11500,000
1,500,000
-
2012
Transportation
560,000
560,000
-
Total
806,848
2,580,000
(273,303)
3,113,545
(35,726)
(309,029)
* Source of Funding: Property Taxes