HomeMy WebLinkAboutFIN 03-23
Report to Council
Report Number: FIN 03-23
Date: January 23, 2023
From: Stan Karwowski
Director, Finance & Treasurer
Subject: 2023 User Fees
File: F-2000-001
Recommendation:
1. That Council approve the attached General Municipal Fees and Charges By-law to
amend By-laws 6191/03 and 7362/14, and incorporate User Fee Schedule I into the 2023
Current Budget;
2. That Council authorize the Director, Finance & Treasurer to increase the budget for the
Access to Recreation grants from $30,000 to $60,000, to be funded from the Casino
Reserve; and
3. That the appropriate City of Pickering officials be given authority to take the necessary
actions to give effect thereto.
Executive Summary: User Fees are an important revenue source for the City of Pickering
and help to cover all or some of the cost of delivering customer-specific services like
recreational programs, licenses and processing of development applications. These fees
benefit the community by taking pressure off the tax rate, while ensuring that the City is able to
continue to provide the high levels of service our customers expect.
Historically, the City has brought forward the recommended User Fees with the Current
Budget, but because the 2023 budget will not be considered by Council until April, these fees
are being brought forward early to allow for implementation as of February 1, 2023.
Before recommending 2023 User Fees, staff undertook a community engagement process to
ensure that the needs, expectations and concerns of our residents were understood. The draft
2023 User Fees were posted on the City’s website in early December for residents to review
and provide comments through the User Fee survey. The City received 86 survey responses
and a summary of the results is included in Attachment 1.
City staff reviewed the current schedule of User Fees and determined that a general increase
in fees of two percent is recommended for 2023 to address City cost pressures including:
higher wages, inflationary increases, increased costs for utilities and higher costs for
equipment purchases and maintenance , all while being sensitive to the affordability needs of
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Subject: 2023 User Fees Page 2
the community. The proposed 2023 User Fee & Charges Schedule is included in Attachment
2.
The modest two percent increase allows the City to recover some of the increased operating
costs arising from the unusually high inflation rate of over six percent currently being
experienced across the province. In specific areas such as Planning & Development, fees
have been further increased to move the service closer to full cost recovery and to reduce
property tax subsidization of those services.
Financial Implications: The revised User Fees will be incorporated into departmental
budgets through the 2023 budget development process. The financial impact will be
determined and presented with the 2023 Current Budget. Revenue increases calculated
through this process will help offset a portion of the cost increases for service delivery that
would otherwise require a higher increase to the 2023 tax levy.
Discussion: As part of its commitment to engagement, accountability, and transparency, in
respect of the 2023 Budget, City staff engaged the community to capture their views on the
proposed 2023 User Fees Schedule. This was the first phase of the 2023 budget engagement
plan running from December 8, 2022 to January 3, 2023.
Community Engagement
The City used a broad and diverse mix of owned and paid communications channels including
Pickering News Advertiser Community page, digital community billboards, website and social
media, and targeted email marketing to groups like ActiveNet registrants. Static curbex
boulevard signs and a short explainer video for social media were also used. Social media
results included:
Instagram – 4,437 reached
Facebook – 20,579 reached
Twitter – 727 reached
On the Let’sTalkPickering.ca/budget project page, a survey was made available. The page
generated 1,300 visits and 86 respondents. While 86 responses may not be viewed as being a
statistically significant response rate, staff did consider the responses and comments carefully
in determining the recommended 2023 User Fees.
Not surprisingly, a theme identified in the survey responses was the impact of fee increases on
accessibility (see Questions 4 and 5 in Attachment 1), particularly for our more vulnerable
communities such as seniors, youth and persons with disabilities. The City shares these
concerns and has implemented programs specifically designed to support those in need and to
ease financial barriers to participation, including:
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Subject: 2023 User Fees Page 3
Access to Recreation assistance program;
discounted and free seniors & youth programming;
room rental reductions for community groups; and
community grants program.
For additional information, including links to the City’s web pages and information on accessing
these programs see Attachment 3.
Some users also indicated a desire for the Waterfront Parking fees to be reviewed. Staff note
that these fees were implemented to provide residents better access to the waterfront and to
resolve parking issues that have been increasing over the last 3-5 years. The paid parking fees
charged for non-resident parking at the waterfront are currently under review and will be
brought forward to Council through Report to Council in the first quarter of 2023.
Fee Recommendations
In determining the recommended User Fees for 2023, staff considered:
public engagement survey and customer feedback results;
current market conditions, including benchmarking against other area municipalities;
demand for service;
cost of service delivery; and
inflation.
Recovery of costs associated with the delivery of services and programs, and ongoing
maintenance of the facilities and equipment is an underlying principle of User Fees. The
impact of inflation on the City’s costs is a particular concern in 2023. The province has
experienced historically high levels of inflation, with CPI for our area topping six percent
throughout 2022. The City’s cost for salaries, materials, utilities and building maintenance have
all been impacted by these increases, putting pressure on both user fees and the tax levy.
Recognizing the importance of affordability to our community, staff recommend a balanced
approach, with the general User Fee increase for 2023 being held to two percent. This
recommendation aligns with the survey feedback, in which users were split between the desire
to recover the cost of service delivery and the need to contain costs for community users.
To provide resources for even greater financial support to the community, st aff further
recommend that the Access to Recreation budget be increased by $30,000 from $30,000 to
$60,000 in 2023. These financial assistance grants ensure that the support is provided to
those in need while also ensuring that City User Fees are reflective of the cost to deliver the
services.
Recreation User Fee Study
To further understand the best structure for the City’s recreation User Fees, the Recreation &
Parks Master Plan recommended that the City undertake a Recreation User Fees Study. As
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Subject: 2023 User Fees Page 4
per Resolution #23/22, Pickering Council awarded this consulting engagement at the
December 5, 2022 meeting of Council. The City of Pickering’s Recreation User Fee Study will
allow the Community Services Department to demonstrate the development of fair a nd
transparent rates, and equitable access to all services. The development of a pricing policy will
serve to offer a defensible rate and fee schedule for programs and services and as well to
ensure the overarching principles are supported by the community. This is a significant
undertaking given that there are hundreds of programs and services offered by Community
Services. This project addresses the need for the City to ensure that recreation, museum, and
special event fees reflect the cost to provide the services, and that lower cost recovery levels
reflect the social values of the community. The Recreation User Fee Study is expected to be
completed by fall of 2023.
City Development Fees
There is a general principle in municipal planning and finance that all development application
fees (inclusive of Building and Planning) should recover the City’s cost for reviewing those
applications. The intent is to avoid having the existing tax base (residents and business
owners) subsidize the costs to the City incurred from new development. Watson & Associates
Economists Ltd. (Watson) was retained by the City to complete a comprehensive update to the
development approval application process fees. One of the objectives of Watson’s review wa s
to determine the fee increases necessary to achieve full cost recovery.
Based on Watson’s review, the City’s building permit application fees, as proposed, are
intended to have full cost recovery. These Building Services fees, on average, have increased
roughly 5 percent over those of the previous year. This is in response to inflationary increases
seen on a global level, where in Canada we saw an increase of 8.1 percent at its height during
the summer months. This increase is anticipated to address cost-of-living increases.
Excluding City-initiated applications, Minor Variance, and Land Division applications, which are
not intended to achieve cost recovery, the City’s current planning application fees only recover
78 percent of the costs of staff’s review of these development application files.
The proposed fee increases included in Attachment 2 of this report will move the City’s fees for
reviewing Planning Act applications closer to full cost recovery. Excluding Minor Variance,
Land Division, and City-initiated applications, cost recovery performance will increase from 78
percent to almost 95 percent. For Official Plan Amendments, the move to full cost recovery
was considered too great to be implemented through a one-time increase. Therefore, a more
moderate fee increase is recommended at this time. Similarly, staff recommend not recovering
the full cost for Minister Zoning Order Amendments, as these fees may be overly burdensome
on residents that live in areas under these regulations. Details of the pr oposed fee increases
are contained in Watson’s Planning Application Fee Review – Update Study, which was
attached to Report to Council PLN 47-22, and summarized in Table 1 below.
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Subject: 2023 User Fees Page 5
Table 1 - Current and Proposed Cost Recovery by Application Type
Application Type Current Cost Recovery Proposed Cost Recovery
Subdivision 53% 100%
Condominium 82% 100%
Official Plan 37% 69%
Zoning By-Law Amendment 89% 100%
Site Plan 98% 100%
Minor Variance and Land
Division
11% 15%
City Initiated Applications 0% 0%
These fee increases are necessary if the City wants to ensure that the application and review
fees better reflect the City’s costs for reviewing development applications. The alternative will
be to shift a greater portion of the cost for reviewing development applications onto Municipal
tax assessment revenue.
Attachments:
1.User Fee Survey Results
2.Proposed 2023 User Fees & Charges
3.Community Support Programs
4.Draft By-law to Confirm General Fees & Charges 2023
Prepared By: Approved/Endorsed By:
Danna Munns James Halsall
Senior Budget & Financial Analyst Division Head, Finance
Stan Karwowski
Director, Finance & Treasurer
Original Signed By:Original Signed By:
Original Signed By:
FIN 03-23 January 23, 2023
Subject: 2023 User Fees Page 6
Recommended for the consideration
of Pickering City Council
Marisa Carpino, M.A.
Chief Administrative Officer
Original Signed By:
Attachment #1 to Report FIN 03-23
Survey Summary
Question 1
Many City services enjoyed by the community are funded from property taxes. There are
however some services that provide direct benefit to an individual, group, or business, rather
than the community as a whole, and as such, the City charges a user fee directly to the
individual or organization benefiting from the service. This means the in dividual/organization
enjoying the service, pays for the service.
Based on the Draft 2023 User Fee Schedule and information provided on the project page, do
you believe you have a good understanding of how user fees are used?
Answer (86 responses)
57% of respondents believe they have a good understanding of how user fees are used
Question 2
Is it fair for Pickering taxpayers to subsidize various user fees that other residents have to pay
in order to participate in City-run programs and activities such as gym memberships, art
lessons, music lessons, and more?
Answer (86 responses)
Respondents were evenly split on in their view of the fairness of taxpayers subsidizing
user fees.
Question 3
Do you support the City increasing user fees annually based on the rate of inflation?
Answer (86 responses)
Slightly more than half of respondents believe that the City should increase rates based
on inflation.
Question 4
It is important to be fair with user fees and costs. Therefore, the individual directly benefiting
from a City service is the one paying for that service.
Do you feel that any user fees should be exempt from cost recovery? If yes, please list the
fees and why.
Answer (86 responses)
66% of respondents indicated that no user fees should be exempt from cost recovery.
If yes, please list the fees and why.
User fees that impact seniors or youth, or persons with a disability
Not for profit community groups
Swimming lessons – both youth and seniors
Community Centre/Recreation fees
See Attachment 2 for description of current City community support programs.
Question 5
After reviewing the Draft 2023 User Fee Schedule, please provide any additional
feedback you have.
General response themes included:
Importance of promoting accessible youth programs
Consider breaks for low income/financially troubled families
Fees for gym and other recreation programs seem high
Consider removing or reducing Waterfront Parking
See Attachment 2 for description of current City community support programs.
Attachment #2 to Report FIN 03-23
Schedule I
Attachment #3 to Report FIN 03-23
Community Support Programs
Access to Recreation:
The City’s Access to Recreation Policy minimizes financial barriers to participation. This policy
is designed to ensure residents have full participation in recreation programs and services
regardless of their income status. Low income residents who are eligible for assistance include
those already receiving social assistance from Durham Region, households whose income is
below the Low-Income Cut-Off, residents over the age of 65, and persons with disabilities.
Funding for this program is provided from a number of sources including the City of Pickering,
Durham Region, and the Canadian Tire Jumpstart Program.
In addition to the Access to Recreation Policy, where there are three or more children in the
same family taking part in the same program, the third child will be charged half price.
Discounts apply to the lower priced program within the current session. This includes
registrations for swimming lessons and summer camps.
Seniors Programming:
The City offers a variety of free and discounted programs for Seniors.
Current City of Pickering programs and events for Seniors 55+ can be found online at
https://www.pickering.ca/en/adults-55-plus.aspx. A number of programs and events such as
the Seniors Centre Without Walls, Spotlight Series and Active Living fair are free of charge,
while other registered programs are offered at a lower rate than comparative adult programs.
The city also partners with a number of Seniors Clubs and Groups such as the South Pickering
Seniors, Rougemount Seniors and Claremont Golden Age Seniors Club. Each of the clubs
offers a wide variety of free or low-cost programs in City of Pickering facilities.
https://www.pickering.ca/en/living/adults-55-plus-resources.aspx
Adults over 65 years receive a 50% rate reduction on memberships at the Recreation
Complex.
Youth Programming:
Current City of Pickering programs and events for Youth can be found online at
https://www.pickering.ca/en/teen.aspx.
A large number of programs and events are free of charge, including Skateboard pop ups,
Basketball, Volleyball, Breakdancing and Improv while other registered programs are offered at
a lower rate than comparative adult programs.
Memberships are offered at a significant discount to the adult fees.
Not For Profit Community Groups:
Community groups and community sport organizations have reduced rentals rates to ensure
their affordable access to our facilities.
Community Grants Program:
Each year the City of Pickering accepts grant applications from local non-profit community
groups who provide programs, services and events to Pickering residents. In 2022, $77,500
was provided to various community organizations through this program. Information about this
program can be found online at https://www.pickering.ca/en/city-hall/CommunityGrants.aspx
Attachment #4 to Report FIN 03-23
The Corporation of the City of Pickering
By-law No. 7983/23
Being a by-law to amend By-law No. 6191/03 and
7362/14 to confirm General Municipal Fees
Whereas the Council of the Corporation of the City of Pickering enacted By-law 6191/03, as
amended, on October 14, 2003 to confirm general municipal fees.
Whereas Schedule “I” to By-law 6191/03 was updated and replaced under By-law, 6338/04,
By-law 6519/05, By-law 6652/06, By-law 6677/06, By-law 6748/07 By-law 6857/08, By-law
6951/09, By-law 7032/10, By-law 7119/11, By-law 7194/12, By-law 7268/13, By-law 7339/14,
By-law 7411/15, By-law 7478/16, By-law 7542/17, By-law 7605/18; By-law 7679/19; By-law
7740-20, 7823/21 and 7918/22;
Now therefore the Council of the Corporation of the City of Pickering hereby enacts as follows:
1.Schedule “I” to By-law Number 6191/03, as amended, is hereby deleted and Schedule “I”
attached hereto is substituted therefore.
2.Schedule “B” to By-law Number 7362/14, as amended, is hereby deleted and replaced
with City Development building fees included in Schedule “I”.
By-law passed this 23rd day of January, 2023.
__________________________________
Kevin Ashe, Mayor
__________________________________
Susan Cassel, City Clerk