HomeMy WebLinkAboutFIN 15-15 Cliff 4 -- Report to
Executive Committee
PICKERING
Report Number:,FIN 15-15
Date: June 8, 2015
From: Paul Bigioni
Director, Corporate Services & City Solicitor
Subject: Development Charges —Annual Indexing
Recommendation:
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1. That Report FIN 15-15 of the Director, Corporate Services & City Solicitor be
received;
2. That effective July 1, 2015 as provided for in By-law 7324/13, the Development
Charges referred to in Schedule "C" of that By-law be increased by 2.1 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
82/98, and By-law 7324/13 provide for an automatic 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 2.1%.
Adoption of the recommendations of this report will put into effect the higher rate for the
period July 1, 2015 to June 30, 2016.
Financial Implications: The Development Charges Study approved in December,
2013 provided a "CPI index holiday" for the first 18 months. The increase in
development charges 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 $266. Other residential charges will increase similarly, and
the non-residential charge will increase by approximately $0.02 per square foot.
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FIN 15-15 June 8, 2015
Subject: Development Charges—Annual Indexing Page 2
Discussion: As provided for in Ontario Reg. 82/98, s.7, and in section 16 of the
City's By-law 7324/13, the development charges charged by the City for all types of
development may be indexed annually without amending the By-law. Adoption of the
recommendations contained in this report will allow that increase to take effect July 1,
2015 thereby assisting in keeping revenues in line with the costs that development
charges fund.
Statistics Canada indicates that the Non-residential Building Construction Price Index
(an indicator of our costs of construction) for the Toronto area has increased by 2.1%
over the year ending March 31, 2015. The change is reflected in the table attached.
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 Residential Development Charges
2. Proposed Residential Development Charges
3. Non-Residential Development Charges
Prepared By: Approved/Endorsed By:
Caryn Kong, CPA, CGA Stan Karwowski, CPA, CMA, MBA
Senior Financial Analyst— Capital & Division Head, Finance &Treasurer
Debt Management
Paul B'•ion
Direct. , Co pora e Services & City Solicitor
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FIN 15-15 June 8, 2015
Subject: Development Charges—Annual Indexing . Page 3
Recommended for the consideration
of Pickering City Council
q
l 1, 2 ' 1 S
Tony Prevedel, P.Eng.
.g
Chief Administrative Officer
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ATTACH EN; # fOREPORT# IV 'j
City of Pickering
Current Residential Development Charges
Effective Jan. 1, 2014
Per Residential Dwelling Unit By Type
Service Single & Apt. Two Apt. One Other
Category Semi Bedroom Bedroom Dwelling
Detached & Larger & Smaller Units
Development Related $182 $96 $71 $144
Studies
Fire Protection 599 317 233 475
Parkland Dev & Trails 1,645 870 638 1,305
Indoor Recreation 3,427 1,812 1,328 2,718
Facilities
Library 825 436 320 654
Operations Facilities & 552 292 215 437
Vehicles
Transportation —
Seaton 1 0 0 0 0
Rest of Pickering 5,072 2,682 1,968 4,023
Stormwater Management $387 204 150 307
Total
-Seaton $7,617 $4,027 $2,955 $6,040
-Rest of Pickering $12,689 $6,709 $4,923 $10,063
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ATTACHMENT REPORT-4;-1J Is-J
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Proposed Residential Development Charges
Effective July 1, 2015
Per Residential Dwelling Unit By Type
Service Single & Apt. Two Apt. One Other
Category Semi Bedroom Bedroom Dwelling
Detached & Larger & Smaller Units
Development Related $186 $98 $72 $147
Studies •
Fire Protection 611 324 238 485
Parkland Dev & Trails 1,680 888 651 1,332
Indoor Recreation 3,499 1,850 1,356 2,775
Facilities
Library 842 445 327 668
Operations Facilities & 564 298 220 446
Vehicles
Transportation —
' Seaton' 0 0 0 0
Rest of Pickering 5,178 2,738 2,009 4,107
Stormwater Management $395 208 153 313
Total
-Seaton1 $7,777 $4,111 $3,017 $6,166
-Rest of Pickering $12,955 $6,849 $5,026 $10,273
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ATTACH MEND# 3 ,TO REM RT /6"--1S-
Non-Residential Development Charges (DC)
Current Non-Residential DC Proposed Non-Residential DC
Effective Jan. 1, 2014 Effective July 1, 2015
Service Non- Prestige Non- Prestige
Category Residential Employment Residential Employment
Per Sq. Ft of Land in Per Sq. Ft of Land in Seaton
Total Floor. Seaton per Total Floor per Net Hectare
Area Net Hectare Area 2
Development Related $0.08 $2,508 $0.08 $2,561
Studies
Fire Protection 0.26 8,119 0.26 8,2.89
Parkland Dev & Trails 0.14 4,235 0.14 4,324
Indoor Recreation 0.28 8,826 0.29 9,011
Facilities
Library 0.07 2,123 0.07 . 2,167
Operations Facilities & 0.24 7,437 0.25 7,593
Vehicles
Transportation —
Seaton1 0 0 0
Rest of Pickering 2.50 0 2.55 0
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Stormwater $0.17 5,453 $0.17 5,568
Management
Total
-Seaton' $1.24 $38,701 $1.26 $39,513
-Rest of Pickering $3.74 $N/A $3.81 $N/A
' Subject to a separate agreement outside of the Development Charges Act concerning the provision of
Transportation requirements in addition to other funding contributions
2.Does not apply to prestige employment land in Seaton
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