HomeMy WebLinkAboutFIN 13-23
Report to Council
Report Number: FIN 13-23
Date: June 26, 2023
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Annual Indexing – Development Charges, Community Benefit Charges and
Seaton Financial Impacts Agreement
- File: F-4920-001
Recommendation:
1. That Report FIN 13-23 of the Director, Finance & Treasurer be received;
2. That effective July 1 to July 11, 2023 as provided for in By-law No. 7953/22, the
Development Charges referred to in Schedule “C” of that By-law be increased by 12.3
percent;
3. That effective July 12, 2023 the Development Charges referred to in Schedule “C” of
that By-law No. 7953/22 be increased to 85 percent of the maximum fee as legislated by
Bill 23, More Homes, Built Faster Act;
4. That effective July 1, 2023 as provided for in By-law No. 7954/22, the Community
Benefit Charges referred to in Schedule “A” of that By-law be increased by 12.3 percent;
5. That effective July 1, 2023 the payments related to “10 percent Soft Services” as
provided for by the Seaton Financial Impacts Agreement dated Novem ber 26, 2015 be
increased by 12.3 percent; and
6. 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. 7953/22 provide for an automatic annual adjustment to the City’s development
charges (the “DCs”) based on the Building Construction Price Index in order to keep
development charges revenues current with construction costs. The City also passed its
Community Benefit Charges Strategy on July 11, 2022 and By-law No. 7954/22, which also
provides for an annual adjustment of the Community Benefit Charges (CBC) fee. The Building
Construction Price Index for the non-residential buildings construction for the annual period
ending March 31, 2023 is 12.3 percent.
Bill 23, More Homes, Built Faster Act, was passed on November 28, 2022 and as a result, the
City is required to phase in the maximum DC fee over a 4-year period. As of July 12, 2023, the
FIN 13-23 June 26, 2023
Subject: Annual Indexing – Development Charges, Community Page 2
Benefit Charges and Seaton Financial Impacts Agreement
City will be entering Year 2 of the phase-in and will be able to charge 85 percent of the DC fee
set in the 2022 DC Background Study, in addition to the CPI increase of 12.3 percent. During
the timeframe of July 1, 2023 to July 11, 2023, the 80 percent maximum DC fee will continue
to be charged with the CPI indexing of 12.3 percent, effective July 1st.
Adoption of Recommendations 2 to 5 of this report will put into effect the higher rates for the
period of July 1, 2023 to June 30, 2024.
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 12.3 percent
effective July 1, 2023 to July 11, 2023.
Attachment 2 provides the DCs by service category for the Seaton lands, and the new rates
with the indexing of 12.3 percent effective July 1, 2023 to July 11, 2023. The additional
charges applicable to development in Seaton as approved in the Seaton Financial Impacts
Agreement (FIA) is also reflected in this attachment.
Attachment 3 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 12.3 percent
along with the 85 percent charge of the maximum DC fee , effective July 12, 2023 to June 30,
2024.
Attachment 4 provides the DCs by service category for the Seaton lands, and the ne w rates
with the indexing of 12.3 percent along with the 85 percent charge of the maximum DC fee,
effective July 12, 2023 to June 30, 2024. The additional charges applicable to development in
Seaton as approved in the Seaton FIA is also reflected in this attachment.
Attachment 5 provides the CBC fee with the new rates reflecting the annual indexing of 12.3
percent.
Financial Implications: Increasing the development charges and community benefit
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. 7953/22 and in section 2.13 of By-law No. 7954/22, the development charges and
community benefit charge imposed 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, 2023, thereby assisting in keeping revenues
in line with the costs that DC and CBC fund.
FIN 13-23 June 26, 2023
Subject: Annual Indexing – Development Charges, Community Page 2
Benefit Charges and Seaton Financial Impacts Agreement
Statistics Canada indicates that the non-residential buildings construction price index (an
indicator of our costs of construction) for the Toronto area has increased by 12.3 percent for
the annual period from April 1, 2022 to March 31, 2023. The change is reflected in the tables
attached.
DC By-law No. 7953/22, section 16(1)(a) provides that the rates in Schedule “C” shall be
adjusted annually in accordance with the change in the index for the most recently available
annual period ending March 31. Schedule “C” is applicable to the new DCs ra tes effective on
July 1, 2022 as a result of the 2022 DC Background Study.
Attachment 6 provides the change in rates in Schedule “C” from November 28, 2022 to July
12, 2023 based on the 12.3 percent indexing, and increasing the maximum DC fee to 85
percent.
CBC By-law No. 7954/22, section 2.13(a) provides that the rates in Schedule “A” shall be
adjusted annually in accordance with the change in the index for the most recently available
annual period ending March 31. Schedule “C” is applicable to the new CBC rates effective on
September 30, 2022 as a result of the 2022 Community Benefits Strategy.
Attachment 7 provides the change in rates in Schedule “A” from September 30, 2022 to July
1, 2023 based on the 12.3 percent indexing.
Continuing from previous years, City staff are including in the DCs annual indexing report,
additional charges applicable to development in Seaton lands as approved in the Seaton FIA.
Sections 4 - 6 of the FIA outline the DC-related financial terms of the agreement. Note that of
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Prior to July
2022
(Old DCs)
July 12, 2022
(New DCs)
Nov 28, 2022
(Bill 23)
July 1-11, 2023
(CPI Index)
July 12, 2023
(Bill 23 Phase-In
85%)
July 12, 2024
(Bill 23 Phase-In
90%)
City DC Fee: Single & Semi-Detached
June 2022 to July 2024
City-Wide Seaton
FIN 13-23 June 26, 2023
Subject: Annual Indexing – Development Charges, Community Page 2
Benefit Charges and Seaton Financial Impacts Agreement
all the 3 services collectible based on the Seaton FIA, the “10 percent Soft Services” is the
only service to be indexed. Attachment 8 provides further details on these charges with the
12.3 percent indexing.
The Seaton DC rates are lower than the City-wide DC rates 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) – Effective July 1 - 11, 2023
2. Seaton Lands Development Charges and Financial Impacts Agreement Charges –
Effective July 1 - 11, 2023
3. City-Wide Development Charges (excludes Seaton Lands) – Effective July 12, 2023
4. Seaton Lands Development Charges and Financial Impacts Agreement Charges –
Effective July 12, 2023
5. Community Benefits Charge – Effective July 1, 2023
6. Schedule “C” – City of Pickering Schedule of Development Charges
7. Schedule “A” – City of Pickering Schedule of Community Benefit Charges
8. Seaton Lands – Financial Impacts Agreement Charges, Section 5.1
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By:
Jason Bekramchand, CPA Stan Karwowski, CPA, CMA, MBA
Senior Financial Analyst – Capital & Director, Finance & Treasurer
Debt Management
FIN 13-23 June 26, 2023
Subject: Annual Indexing – Development Charges, Community Page 2
Benefit Charges and Seaton Financial Impacts Agreement
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer
Attachment #1 to Report FIN 13-23
City of Pickering
City-Wide Development Charges (Excludes Seaton Lands)
Development Charges (DC) By-law No. 7953/22
Effective July 1, 2023 - July 11, 2023
80% of maximum fee, indexed
Non-Residential
Charges
Service Category Single and
Semi-
Detached
Dwelling
Apartments - 2
Bedrooms +
Apartments -
Bachelor and
1 Bedroom
Other
Multiples
Non-Residential
per ft² of Total
Floor Area
Other Services Related to a Highway $670 $390 $239 $517 $0.31
Fire Protection Services 1,057 615 377 814 0.48
Parks and Recreation Services 11,924 6,935 4,256 9,185 0.93
Library Services 2,196 1,277 783 1,692 0.17
Growth-Related Studies 211 123 75 163 0.03
Stormwater Management 413 241 147 318 0.19
By-Law Enforcement Services 93 54 33 71 0.04
Transportation1 12,093 7,034 4,317 9,316 4.25
Total $28,657 $16,669 $10,227 $22,076 $6.40
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.
Per Residential Dwelling Unit by Type
Attachment #2 to Report FIN 13-23
City of Pickering
Seaton Lands Development Charges and Financial Impacts Agreement (FIA) Charges
Development Charges (DC) By-law No. 7953/22 and FIA Article 5
Effective July 1, 2023 - July 11, 2023
80% of maximum fee, indexed
Service Category Single and
Semi-Detached
Dwelling
Apartments - 2
Bedrooms +
Apartments -
Bachelor
and 1
Bedroom
Other
Multiples
Non-Residential
per ft² of Total
Floor Area 5
(per net Ha of
Prestige
Employment
Land in
Seaton)
Other Services Related to a Highway $670 $390 $239 $517 $0.31 $10,507
Fire Protection Services 1,057 615 377 814 0.48 16,613
Parks and Recreation Services 11,924 6,935 4,256 9,185 0.93 32,277
Library Services 2,196 1,277 783 1,692 0.17 6,017
Growth-Related Studies 211 123 75 163 0.03 973
Stormwater Management 413 241 147 318 0.19 6,499
By-Law Enforcement Services 93 54 33 71 0.04 1,405
Transportation 1 0 0 0 0 0.00 0
Total DC By-law No. 7953/22 $16,564 $9,635 $5,910 $12,760 $2.15 $74,291
Total Soft Services 2 1,181 539 539 935 0.137 0.137
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 $1,670 $762 $762 $1,323 $0.137 $0.137
Total Charges-Seaton Lands $18,234 $10,397 $6,672 $14,083 $2.287 $74,291/ha &
$0.137/sq. ft
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.
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.
Per Residential Dwelling Unit by Type Non-Residential Charges
Attachment #3 to Report FIN 13-23
City of Pickering
City-Wide Development Charges (Excludes Seaton Lands)
Development Charges (DC) By-law No. 7953/22
Effective July 12, 2023 - June 30,2024
85% of maximum fee, indexed
Non-Residential
Charges
Service Category Single and
Semi-
Detached
Dwelling
Apartments - 2
Bedrooms +
Apartments -
Bachelor and
1 Bedroom
Other
Multiples
Non-Residential
per ft² of Total
Floor Area
Other Services Related to a Highway $712 $414 $254 $549 $0.32
Fire Protection Services 1,123 653 401 865 0.51
Parks and Recreation Services 12,670 7,368 4,522 9,759 0.98
Library Services 2,333 1,356 832 1,797 0.18
Growth-Related Studies 224 131 80 173 0.03
Stormwater Management 439 256 157 338 0.20
By-Law Enforcement Services 98 57 35 75 0.04
Transportation1 12,849 7,473 4,587 9,898 4.52
Total $30,448 $17,708 $10,868 $23,454 6.78
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
Attachment #4 to Report FIN 13-23
City of Pickering
Seaton Lands Development Charges and Financial Impacts Agreement (FIA) Charges
Development Charges (DC) By-law No. 7953/22 and FIA Article 5
Effective July 12, 2023 - June 30,2024
85% of maximum fee, indexed
Service Category Single and
Semi-Detached
Dwelling
Apartments - 2
Bedrooms +
Apartments -
Bachelor
and 1
Bedroom
Other
Multiples
Non-Residential
per ft² of Total
Floor Area 5
(per net Ha of
Prestige
Employment
Land in
Seaton)
Other Services Related to a Highway $712 $414 $254 $549 $0.32 $11,163
Fire Protection Services 1,123 653 401 865 0.51 17,652
Parks and Recreation Services 12,670 7,368 4,522 9,759 0.98 34,294
Library Services 2,333 1,356 832 1,797 0.18 6,394
Growth-Related Studies 224 131 80 173 0.03 1,034
Stormwater Management 439 256 157 338 0.20 6,905
By-Law Enforcement Services 98 57 35 75 0.04 1,493
Transportation 1 0 0 0 0 0.00 0
Total DC By-law No. 7953/22 $17,599 $10,235 $6,281 $13,556 $2.26 $78,935
Total Soft Services 2 1,181 539 539 935 0.137 0.137
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 $1,670 $762 $762 $1,323 $0.137 $0.137
Total Charges-Seaton Lands $19,269 $10,997 $7,043 $14,879 $2.397 $78,935/ha &
$0.137/sq. ft
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.
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.
Non-Residential ChargesPer Residential Dwelling Unit by Type
Attachment #5 to Report FIN 13-23
City of Pickering
Community Benefit Charges (CBC) By-law No. 7954/22
Community Benefits Charges
Effective July 1, 2023 - June 30, 2024
Unit Type
CBC
Charge
Apartments - Bachelor and 1 Bedroom $1,202
Apartments - 2 Bedrooms +$738
Attachment #6 to Report FIN 13-23
Schedule "C"
City of Pickering
Schedule of Developement Charges-DC By-law No. 7593/22
Effective November 28, 2022
Non-Residential Charges
Service Category
Single and
Semi-
Detached
Dwelling
Apartments - 2
Bedrooms +
Apartments -
Bachelor and 1
Bedroom
Other
Multiples
Non-
Residential
per Sq. Ft of
Total Floor
Area
Prestige
Employment
Land in
Seaton (per
Sq. Ft)
Other Services Related to a Highway $597 $347 $213 $460 $0.27 $9,356
Fire Protection Services 941 547 336 725 0.42 14,794
Parks and Recreation Services 10,618 6,175 3,790 8,179 0.82 28,742
Library Services 1,955 1,137 698 1,506 0.15 5,358
Growth-Related Studies 188 110 67 145 0.02 866
Stormwater Management 368 214 131 283 0.17 5,787
By-Law Enforcement Services 82 48 30 63 0.03 1,251
Total Municipal Wide Services $14,749 $8,578 $5,265 $11,361 $1.88 $66,154
Outside of Seaton Lands:
Transportation 1 10,769 6,263 3,844 8,295 3.78 0
Total Services Outside of Seaton
Lands $10,769 $6,263 $3,844 $8,295 $3.78 $0
Seaton $14,749 $8,578 $5,265 $11,361 $1.88 $66,154 A
Rest of Pickering-City wide $25,518 $14,841 $9,109 $19,656 $5.66 N/A B
Effective July 12, 2023: Indexed at 12.3% and phase-in increased to 85% of maximum DC Fee
Non-Residential Charges
Service Category
Single and
Semi-
Detached
Dwelling
Apartments - 2
Bedrooms +
Apartments -
Bachelor and 1
Bedroom
Other
Multiples
Non-
Residential
per Sq. Ft of
Total Floor
Area
Prestige
Employment
Land in
Seaton (per
Sq. Ft)
Other Services Related to a Highway $712 $414 $254 $549 $0.32 $11,163
Fire Protection Services 1,123 653 401 865 0.51 17,652
Parks and Recreation Services 12,670 7,368 4,522 9,759 0.98 34,294
Library Services 2,333 1,356 832 1,797 0.18 6,394
Growth-Related Studies 224 131 80 173 0.03 1,034
Stormwater Management 439 256 157 338 0.20 6,905
By-Law Enforcement Services 98 57 35 75 0.04 1,493
Total Municipal Wide Services $17,599 $10,235 $6,281 $13,556 $2.26 $78,935
Outside of Seaton Lands:
Transportation 1 12,849 7,473 4,587 9,898 4.52 0
Total Services Outside of Seaton
Lands $12,849 $7,473 $4,587 $9,898 $4.52 0
Seaton Lands $17,599 $10,235 $6,281 $13,556 $2.26 $78,935 C
Rest of Pickering-City wide $30,448 $17,708 $10,868 $23,454 $6.78 N/A D
$ Increase - Seaton Lands $2,850 $1,657 $1,016 $2,195 $0.38 $12,781 A-C
$ Increase - Rest of Pickering-City
wide $4,930 $2,867 $1,759 $3,798 $1.12 N/A B-D
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
Per Residential Dwelling Unit By Type
Attachment #7 to Report FIN 13-23
Schedule "A"
City of Pickering
Community Benefit Charges (CBC) By-law No. 7954/22
Effective September 30, 2022
Unit Type
CBC
Charge
Apartments - Bachelor and 1 Bedroom $1,070
Apartments - 2 Bedrooms +$657
Effective July 1, 2023: Indexed at 12.3%
Unit Type
CBC
Charge
Apartments - Bachelor and 1 Bedroom $1,202
Apartments - 2 Bedrooms +$738
$ Increase $
Apartments - Bachelor and 1 Bedroom $132
Apartments - 2 Bedrooms +$81
Attachment #8 to Report FIN 13-23
City of Pickering
Seaton Lands - Financial Impacts Agreement (FIA) Charges, Section 5.1
Section 5.1: 10% Soft Services Contribution*
Effective July 1, 2023 - June 30, 2024
Non-Residential Charges
Service Category
Single and
Semi-
Detached
Dwelling
Apartments -
2 Bedrooms
+
Apartments -
Bachelor and
1 Bedroom
Other
Multiples
Non-
Residential
per Sq. Ft of
Total Floor
Area
Prestige
Employment
Land in
Seaton (per
Sq. Ft)
10% Soft Services
Development-Related Studies 1 $6.30 $2.87 $2.87 $4.98 $0.003 $0.003
Parks Development & Trails 299.59 136.92 136.92 237.58 0.026 0.026
Indoor Recreation Facilities 624.42 284.64 284.64 493.65 0.051 0.051
Library 150.06 68.58 68.58 119.00 0.012 0.012
Operations Facilities & Vehicles 100.63 45.99 45.99 79.79 0.045 0.045
Total Soft Services $1,181 $539 $539 $935 $0.137 $0.137
* This contribution is to be indexed with the construction price index prescribed by the DC Act.
** 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 **