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HomeMy WebLinkAboutFIN 26-17CCq ,/ DICKERING Report to Executive Committee Report Number: FIN 26-17 Date: December 4, 2017 From: Stan Karwowski Director, Finance & Treasurer Subject: Establishment of the Public Benefits Reserve Fund Recommendation: 1. That Report FIN 26-17 of the Director, Finance & Treasurer regarding the establishment of the Public Benefits Reserve Fund, in accordance with Section 37 of the Planning Act be received; 2. That Council approve the establishment of the Public Benefits Reserve Fund; 3. That the attached By-law be enacted; and 4. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: The passage of the Smart Growth for our Communities Act (Bill 73) enacted changes to the Planning Act. Included in these changes is the requirement that municipalities maintain a special account (reserve fund) for funds collected under Section 37 of the Planning Act. On an annual basis, the Treasurer is required to provide a financial statement on this reserve fund. _ Financia[ Implications: None Discussion: Section 37 of the Planning Act provides that a municipality can increase the height and density of approved development in return for the provision of certain facilities or services. This is commonly referred to as "density bonusing". Bill 73 (the Smart Growth for our Community Act) amended Section 37 of the Planning Act by adding the following new subsections: FIN 26-17 December 4, 2017 Subject: Establishment of the Public Benefits Reserve Fund Page 2 (5) Special Account - All money received by the municipality under this Section shall be paid into a special account and spent only for facilities, services and other matters specified in the By-law; (6) Investments - The money in the special account may be invested in securities in which the municipality is permitted to invest under the Municipal Act, 2001; or the City of Toronto Act, 2006, as the case may be, and the earnings derived from the investment of the money shall be paid into the special account, and the auditor in the auditor's annual report shall report on the activities and status of the account. The By-law establishes a Public Benefits Reserve Fund for the collection of contributions under Section 37 of the Planning Act. Upon approval of the By-law, a financial statement relating to the reserve fund will be reported to Council. Attachments: 1. By-law to Establish the Public Benefits Reserve Fund Pursuant to Section 37 of the Planning Act Prepared By: aryn Kong, CPA, C'6-77-(- Senior ASenior Financial Analyst — Capital & Debt Management Approved / Endorsed By: Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer .20, 2017 ATTACHMENT #r , / TO REPORT #.r":?. The Corporation of the City of Pickering By-law No. Being a by-law to establish the Public Benefits Reserve Fund pursuant to Section 37 of the Planning Act, R.S.O. 1990, c.P.13, as amended Whereas the Municipal Act, S.O. 2001, c.25, as amended, authorizes municipal councils to establish reserve funds for any purpose for which it has authority to. spend money and; Whereas the Council for the Corporation of the City of Pickering has provided for the establishment of reserve fund; and Whereas Section 37 of the Planning Act, R.S.O. 1990, c.P.13, as amended, permits a municipality to enact a zoning by-law authorizing increases in height and density of development otherwise permitted by the by-law in return for the provision of such facilities, services or other matters as are set out in the by-law, provided that the municipality's Official Plan authorizes such increases in height and density; and Now therefore the Council of the Corporation of the City of Pickering hereby enacts as follows: 1. That the Public Benefits Reserve Fund be established; 2. That all deposits to the Public Benefits Reserve Fund are subject to the signed agreement between the City and developer pursuant to Section 37 of the Planning Act; 3. That the Public Benefits Reserve Fund be utilized only for funds needed and expended pursuant to Section 37 of the Planning Act; 4. If excess funds remain after completion of any particular community benefit, project funded pursuant to Section 37 of the Planning Act, such excess funds shall remain in the Public Benefits Reserve fund and shall be spent only in accordance with Section 37 of the Planning Act; 5. Interest earned on the investment of fund balances shall form part of this reserve fund; 6. Funds collected or received pursuant to Section 37 of the Planning Act prior to the establishment of this reserve fund shall be transferred to this reserve fund. By-law No. Page 2 7, This By-law comes into force on the date it is passed. By-law passed this 11th day of December, 2017. David Ryan, Mayor Debbie Shields, City Clerk