HomeMy WebLinkAboutFIN 14-18PJCKERJ NG
Report to
Executive Committee
Report Number: FIN 14-18
Date: June 18, 2018
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Annual Indexing — Development Charges and Seaton Financial Impacts
Agreement
Recommendation:
1. That Report FIN 14-18 of the Director, Finance & Treasurer be received;
2. That effective July 1, 2018 as provided for in By-law No. 7595/17, the
Development Charges (the "DCs") referred to in Schedule "C" of that By-law be
increased by a 6 month period indexing of 1.4 percent, and for those non-
residential Seaton employment lands lying north of the Highway 407 corridor, be
indexed effective December 31, 2018;
3. That effective July 1, 2018 as provided for in By-law No. 7595/17, the DCs
referred to in Schedule "D" of that By-law be increased by an annual indexing of
3.3 percent;
4. That effective July 1, 2018 the payments related to "10 per cent Soft Services" as
provided for by the Seaton Financial Impacts Agreement dated November 26,
2015 be increased by an annual indexing of 3.3 per cent; and
5. That the appropriate City of Pickering officials be authorized to take the
necessary actions as indicated in this report.
Executive Summary: The Development Charges Act 1997 and Ontario Regulation
82/98, and By-law No. 7595/17 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 Indexes for the six-month period ending March
31, 2018 is 1.4% and the annual period ending March 31, 2018 is 3.3 per cent.
Adoption of the recommendations of this report will put into effect the higher rate for the
period of July 1, 2018 to June 30, 2019.
Attachment 1 provides the DCs by service category for the City-wide area in Pickering
excluding the Seaton Lands with the new rates reflecting the annual indexing of 3.3 per
FIN 14-18 June 18, 2018
Subject: Annual Indexing and Development Charges for Page 2
City -Wide and Seaton Lands
cent for apartments dwelling units, and six-month indexing of 1.4 per cent for the
remaining residential dwelling units and non-residential charges.
Attachment 2 provides the DCs by service category for the Seaton Lands, and the new
rates with the 6 month period indexing of 1.4 per cent as well as additional charges
applicable to development in Seaton as approved in the Seaton Financial Impacts
Agreement (FIA).
Financial Implications: Increasing the development charges based on an increase
in the construction price index will assist in keeping the revenues generated in line with
current construction costs.
Discussion: As provided for in Ontario Reg. 82/98, s.7, and in section 16 of the
City's By-law No. 7595/17, the development charges charged by the City for all types of
development shall 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,
2018, thereby assisting in keeping revenues in line with the costs that development
charges fund.
Note that in the first quarter of 2018, Statistics Canada released the first building
construction price indexes that included both new residential and non-residential
building construction in Canada. The City continues to use the non-residential
building construction price index for the purpose of indexing the DCs rates.
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 1.4 per
cent for the six-month period from Oct. 1, 2017 to March 31, 2018, and 3.3 per cent
for the annual period from April 1, 2017 to March 31, 2018. The change is reflected in
the tables attached.
The most recent 2017 DC Background Study was completed in December 2017. DC
By-law No. 7595/17, section 16(1)(i) provides that the rates in Schedule "C" shall be
adjusted on July 1, 2018 in accordance with the change in index for the 6 month period
ending March 31, 2018. Attachment 4 provides the change in rates in Schedule "C" from
January 1 to July 1, 2018 based on the 1.4 per cent indexing. Schedule "C" is applicable
to the new DCs rates made effective on January 1, 2018 as a result of the 2017 DC
Background Study.
The same By-law, under section 16(1)(iii) provides that the rates in Schedule "D" shall
be adjusted on July 1, 2018 in accordance with the change in index for the annual
period ending March 31, 2018. Schedule "D" is applicable to residential apartments
dwelling units for the area outside of Seaton. Attachment 5 provides the change in rates
in Schedule "D" from January 1 to July 1, 2018 based on the 3.3 per cent indexing. The
FIN 14-18
Subject: Annual Indexing and Development Charges for
City -Wide and Seaton Lands
June 18, 2018
Page 3
implementation of new DCs rates for apartment dwellings units was delayed to
accommodate the long-term planning and construction cycle associated with this
development.
Continuing from previous years, City staff are including in the DC annual indexing report
a Seaton DC section based on the Seaton FIA. Sections 4 - 6 of the FIA outline the
DC -related financial terms of the agreement. Note that of all the 3 services collectible
based on the Seaton HA, the "10% Soft Services" is the only service to be indexed.
Attachment 3 provides the further details on these charges with the 3.3 per cent
indexing.
The Seaton DC rate is lower than the City-wide DC rate to reflect the fact that the
Seaton Landowner Group (SLG) is responsible to design, build and pay for the Seaton
internal roads network.
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. City -Wide Development Charges (excludes Seaton Lands)
2. Seaton Lands Development Charges and Financial impacts Agreement (FIA)
Charges
3. Seaton Lands — Financial Impacts Agreement (FIA) Charges, Section 5.1
4. Schedule "C" — City of Pickering Schedule of Development Charges
5. Schedule "D" -- City of Pickering Schedule of Development Charges for
Residential Apartments Dwelling Units for the Area Outside of Seaton
Prepared By: Approved/Endorsed By:
Caryn Kong, CPA, CGA
Senior Financial Analyst — Capital &
Debt Management
Stan Karwowski, CPA, CMA, MBA
Director, Finance & Treasurer
FIN 14-18
June 18, 2018
Subject: Annual Indexing and Development Charges for Page 4
City -Wide and Seaton Lands
Recommended for the consideration
of Pickering City Council
Tony Prevedel, P.Eng.
Chief Administrative Officer
j,,,e s, 2018
City of Pickering
City -Wide Development Charges (Excludes Seaton Lands)
Development Charges By-law No. 7595/17
Effective July 1, 2018
1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
Per Residential Dwelling Unit By Type
Non -Residential Charges
Apt Dwellings Apt Dwellings
Singles or Semi- with 2 or more with Tess than
Other
Non -Residential per
Sq. Ft of Total Floor
Service Category
Detached
bdrms
2 bdrms
Dwellings
Area
Other Services Related to a
Highway
$447
$230
$168
$361
$0.15
Protection Services
901
463
340
728
0.34
Parks and Recreation Services
4,919
2,527
1,854
3,972
0.40
Library Services
1,101
566
415
889
0.08
Administration Studies
281
145
106
227
0.10
Stormwater Management
292
150
111
236
0.10
Transportation 1
6,608
3,394
2,492
5,335
1.86
Total
$14,549
$7,475
$5,486
$11,748
$3.03
1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
City of Pickering
Seaton Lands Development Charges and Financial Impacts Agreement (FIA) Charges
Development Charges (DC) By-law No. 7595/17 and FIA Article 5
Effective July 1, 2018
DC By-law No. 7595/17
Per Residential Dwelling Unit By Type
Non -Residential Charges
Apt
Dwellings
Apt Dwellings
Non -Residential per
Prestige Employment
Singles or Semi-
with 2 or
with less than
Other
Sq. Ft of Total Floor
Land in Seaton (per
Service Category
Detached
more bdrms
2 bdrms
Dwellings
Area 5
Net Hectare)
Other Services Related to a Highway
$447
$283
$200
$361
$0.15
$5,527
Protection Services
901
570
404
728
0.34
11,591
Parks and Recreation Services
4,919
3,108
2,201
3,972
0.40
13,447
Library Services
1,101
696
493
889
0.08
2,641
Administration Studies
281
177
'
227
0.10
3,610
Stormwater Management
292
185
131
236
0.10
3,553
Transportation 1
0
0
0
0
0.00
0
Total DC By-law No.7595/17
$7,941
$5,019
$3,429
$6,413
$1.17
$40,369
Per Sq. Ft of Total
SLG FIA
Floor Area
10% Soft Services 2
$803
$367
$367
$637
$0.093
$0.093
Non Indexed
Municipal Buildings 3
189
86
86
150
n/a
n/a
Community Uses 4
300
137
137
238
n/a
n/a
Total SLG FIA
$1,292
$590
$590
$1,025
$0.093
$0.093
$40,369/ha &
Total Charges -Seaton Lands
$9,233
$5,609
$4,019
$7,438
$1.263
$0.093/sq. ft
Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
2 Breakdown by service category is available upon request. Not applicable to lands owned by the Province. For residential development,
payment is due at subdivision registration except for mixed-use or multi -use or multi -residential development blocks subject to site plan approval.
For all other development, payment is due prior to building permit issuance. Subject to annual indexing. _
3 Applicable to the first 11,280 S.D.Es built on SPL Lands, due prior to building permit issuance. No indexing
4 Applicable to the first 11,280 S.D.Es built on SPL Lands to a maximun payment of $3.3 million; due prior to building permit issuance. No indexing
5 Does not apply to prestige employment land in Seaton, as that development is subject to the per net Ha land area charge instead. Applies
to non-residential development in the non -prestige employment land in Seaton.
J:\RPTCOUNC\2018\FIN14ck Attachments 1-5
City of Pickering
Seaton Lands - Financial impacts Agreement (FIA) Charges, Section 5.1
Section 5.1: 10% Soft Services Contribution*
Effective July 1, 2018
* This contribution is to be indexed with the construction price index prescribed by the DC Acf.
FIA version (October 28, 2013) subsection 5.1 and 5.2 permits the City to charge an additional DC to compensate for the
10% soft services deduction.
The calculation is based on the DC rate multiplied by 11.11% as stated in the FIA agreement subsection 5.2.
1
19.0% of the DC Recoverable share for the Development Related Studies is comprised of costs that are subject to the 10% deduction
Per Residential Dwelling Unit By Type **
Non -Residential Charges
Apt
Prestige
Dwellings
Non -Residential
Employment Land
Singles or Semi-
with 2 or Apt Dwellings with
Other
per Sq. Ft of
in Seaton (per Sq.
Service Category
Detached
more bdrms less than 2 bdrms
Dwellings
Total Floor Area
Ft)
Development -Related Studies 1
$4.29
$1.95
$1.95
$3,39
0.002
0.002
Parks Development & Trails
203.78
93.12
93,12
161.60
0.017
0.017
Indoor Recreation Facilities
424.41
194.00
194,00
336.79
0.035
0.035
Library
102.07
46.64
46.64
80.95
0.009
0.009
Operations Facilities & Vehicles
68.45
31.28
31.28
54.27
0.030
0.030
Total
$803.00
$367.00
$367.00
$637.00
0.093
0.093
* This contribution is to be indexed with the construction price index prescribed by the DC Acf.
FIA version (October 28, 2013) subsection 5.1 and 5.2 permits the City to charge an additional DC to compensate for the
10% soft services deduction.
The calculation is based on the DC rate multiplied by 11.11% as stated in the FIA agreement subsection 5.2.
1
19.0% of the DC Recoverable share for the Development Related Studies is comprised of costs that are subject to the 10% deduction
A `l TACH ENT it fi TO REPORT 14-2i+ -1 •
Schedule "C"
City of Pickering Schedule of Developement Charges -DC By-law No. 7595/17
Effective Jan 1, 2018
Effective July 1, 2018 Indexed at 1.40%
Per Residential Dwelling Unit By Type
Non -Residential Charges
Apt
Non-
Prestige
Apt
Dwellings
Residential
Employment
Singles or
Dwellings
with less
per Sq. Ft of
Land in
Semi-
with 2 or
than 2
Other
Total Floor
Seaton (per
Service Category
Detached
more bdrms
bdrms
Dwellings
Area
Net Hectare)
Other Services Related to a Highwa
$441
$279
$197
$356
$0.15
$5,451
Protection Services
889
562
398
718
0.33
11,431
Parks and Recreation Services
4,851
3,065
2,171
3,917
0.39
13,261
Library Services
1,086
686
486
877
0.08
2,605
Administration Studies
277
175
124
224
0.10
3,560
Stormwater Management
288
182
129
233
0.10
3,504
Total Municipal Wide Services
$7,832
$4,949
$3,505
$6,325
$1.15
$39,812
Outside of Seaton Lands:
Transportation 1
6,517
4,117
2,917
5,261
1.83
0
Total Services Outside of
Seaton Lands
$6,517
$4,117
$2,917
$5,261
$1.83
$0
Seaton
$7,832
$4,949
$3,505
$6,325
$1.15
$39,812
Rest of Pickering -City wide
$14,349
$9,066
$6,422
$11,586
$2.98
Effective July 1, 2018 Indexed at 1.40%
1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
NA- See Schedule "D" indexed at 3.3%
Per Residential Dwelling Unit By Type
Non -Residential Charges
Apt
Non-
Prestige
Apt
Dwellings
Residential
Employment
Singles or
Dwellings
with less
per Sq. Ft of
Land in
Semi-
with 2 or
than 2
Other
Total Floor
Seaton (per
Service Category
Detached
more bdrms
bdrms
Dwellings
Area
Net Hectare)
Other Services Related to a Highw.
$447
$283
$200
$361
$0.15
5,527
Protection Services
901
570
404
728
0.34
11,591
Parks and Recreation Services
4,919
3,108
2,201
3,972
0.40
13,447
Library Services
1,101
696
493
889
0.08
2,641
Administration Studies
281
177
126
227
0.10
3,610
Stormwater Management
292
185
131
236
0.10
3,553
Total Municipal Wide Services
$7,941
$5,019
$3,555
$6,413
$1.17
$40,369
Outside of Seaton Lands:
Transportation 1
6,608
4,175
2,958
5,335
1.86
0
Total Services Outside of
Seaton Lands
$6,608
$4,175
$2,958
$5,335
$1.86
0
Seaton
$7,941
$5,019
$3,555
$6,413
$1.17
$40,369
Rest of Pickering -City wide
$14,549
NA
NA
$11,748
$3.03
1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
NA- See Schedule "D" indexed at 3.3%
'AC H EN)
Schedule "0"
City of Pickering
Schedule of Developement Charges for Residential
Apartments Dwelling Units for the Area Outside of Seaton DC By-law No. 7595/17
Effective Jan 1, 2018
Effective July 1, 2018 Indexed at 1.40%
RESIDENTIAL
Apt Dwellings with 2 Apt Dwellings with
Service Category
or more bdrms
less than 2 bdrms
Other Services Related to a Highway
$223
$163
Protection Services
448
329
Parks and Recreation Services
2,446
1,795
Library Services
548
402
Administration Studies
140
103
Stormwater Management
145
107
Total Municipal Wide Services
$3,950
$2,899
Outside of Seaton Lands:
Outside of Seaton Lands:
Transportation 1
3,286
2,412
Total Services Outside of Seaton Lands
$3,286
$2,412
Rest of Pickering -City wide
$7,236
$5,311
Effective July 1, 2018 Indexed at 1.40%
1Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
RESIDENTIAL
Apt Dwellings with 2 Apt Dwellings with
Service Category
or more bdrms
less than 2 bdrms
Other Services Related to a Highway
$230
$168
Protection Services
463
340
Parks and Recreation Services
2,527
1,854
Library Services
566
415
Administration Studies
145
106
Stormwater Management
150
111
Total Municipal Wide Services
$4,081
$2,994
Outside of Seaton Lands:
Transportation 1
3,394
2,492
Total Services Outside of Seaton Lands
$3,394
$2,492
Rest of Pickering -City wide
$7,475
$5,486
1Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.