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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 ATTACHMENT #PTO REPORT #.,k_0q j3 m N° N (D OLcro) W N O (+7 C1 - N O n "I I'm, c'! O co N _ O Lo n N 0 Eli n n u7 M n co M M _ M V n co _ .� M n (D O _ cn to y t6 N O n V V (D O (D O m "'` y. Eli V M M M O w O Q M t0 Q J LL `m M O O Nt (n On ° co m -- C _O cc N Lq D7 O co co m rn w- m O n co m m d7 O) V co C4 m ci O Lo n co Go > LL O Oi to 0 (D D) O O (D M M n CD M N (M n co co tD n t0 O Cm CL .M (nD O V� V O O LD t6 Y O H EH O (VD N r a > ca m L rn _M ° n m _^ co O ° N N (D N to n (D O V w - M O N O V V W r CC01 M (D (D M M N L l... C m ai M N O S M M (L (O OMO _ r L O to N n M `-� (D n M (`� _ (D m N N N O U CC) (D O O N MD ( N N M Lo n to 'O M Ic O to Q) O O N � O (D O (D O co O t0 M -_ y m N V 00 M (D O V n O D) O O (n N cl M N co to ((> Lo O t2 W V° N M^ (n M t0 o ,3 O 7 y W N n n (D P N t Lci U. m i.+ ca U-T M It n (D (n M M O M t0 d M - y Iq r cu s 01' LL > n m O (D M^ n M N tl0 O M O M Cl -` �_. -.- to n n N (6 M c co V M aOD M ( D y N OL m N N M O V O N V D Lo N V r L d N N C '- G7 M N O N .0 J d M V N CA C E m O m a�i E y _ t4 0 E y E V E Q d N - - R cc > c E O E t_ +�+ v m _ m e m w U y w y W y 0 D m C Of 7 tu m m y •�-• '� 7 ui C m W Of C ~ d CL C d Q c �O m m m w n °1 Z w cc y m m �' Z W w w m E m N- d' T- O •C m >> V C N N N C m G' :a 'n N m C rn c o L C., c W m d y m m o X N 3 0 7 0 s o �, ❑� _ ��,� w��� LL m LL ATTACHMENT #�A_TOREPORT #.jl of -/3 to 41 Y U d r-I CD O ° N M O N V o A� N O V N Mo L S O V 0 N E m O � o O N 7 L- m 0 0 N O O O O O O O O O O O O O O O O O O O O ' O O O O O O O O O O O O O O 6 O' O O O O O - O O O O O O O O O O Lr O Lr O ll1 O V1 O Lf) Vl d' m m N N cq 'A 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