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Home My WebLink AboutFIN 02-25Report to Council Report Number: FIN 02-25 Date: January 27, 2025 From: Stan Karwowski Director, Finance & Treasurer Subject: 2025 Financial Housekeeping Report - File: A-2000-001 Recommendation: 1. That Council approve an increase to the 2025 Low Income Seniors & Persons with Disabilities Tax Grant amount, from $560 to $600 per household; 2. That the Director, Finance & Treasurer be authorized, at his discretion, to draw from the Building Permit Reserve Fund to address any revenue shortfall (Building Permit Fees) to maintain the 2025 balanced budget plan; 3. That Council approve the cancellation of the following previously approved Capital projects: Project Number Description Unspent Budget Amount C10700.2018 Seaton North FS - Land $1,400,000 C10700.2305 Seaton Fire Station B Land Purchase $1,350,000 C10700.2401 FS #5 Replacement $4,600,000 C10225.2402 New Pilates Reformer Machines $23,000 C10240.2306 Server Room FM200 System Replacement $77,000 C10300.2302 EV Charging Stations - Operations Centre $77,000 C10305.2407 1 Ton Dump Truck with Aluminum Body and Crane $175,000 C10305.2408 Utility Truck $150,000 C10315.2413 4 Ton Dump Truck Roll-off Body $350,000 C10600.1903 Purchase of Land - Pickering Innovation Corridor $9,000,000 4. That Council approve staff attendance at international conferences, in accordance with Subsection 10.02 of the Financial Control Policy, for the following: a) International travel by the Manager, ERP & Financial Systems or designate to attend the 2025 annual SAP Sapphire Conference in Orlando, Florida, and that the total conference costs not to exceed $4,150 (CAD); FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 2 b) International travel by the Director, Economic Development & Strategic Projects or designate to attend the 2025 annual conference for International Economic Development Council in Detroit, Michigan and that the total conference costs not to exceed $5,000 (CAD); c) International travel by the Director, Economic Development & Strategic Projects or designate to attend the 2025 conference for American Public Transportation Association Conference & Expo in Chicago, Illinois and that the total conference costs not to exceed $5,000 (CAD); 5. That the following capital projects have their financing sources changed from Debt financing to City’s Reserves/Reserve Funds, to help preserve the ARL room for future capital projects: a) C10700.2307 (Fire Pumper Rescue Replacement, total cost of $2,009,372) – originally approved for $9,372 in property tax funding and $2,000,000 in debt financing (FIR 01-24) – being changed to the Rate Stabilization Reserve for debt financing; b) C10570.1701 (Westney Road - Full Road Reconstruction, total cost of $1,800,000) – originally approved as $300,000 in debt financing (2017 Capital Budget) and $1,500,000 from the Road & Bridges Reserve Fund, - full amount $1,800,000 to be funded from Road & Bridges Reserve Fund; 6. That the Purchasing Policy (PUR 010) be revised to change the dollar threshold amount that requires Council approval from $25,000 to $100,000 for Public Art Project purchases or Public Art projects, and that Community Services staff report back to Council in the first Quarter of 2027 evaluating these changes; 7. That the Director, Finance & Treasurer be authorized, at his discretion, to undertake the following actions: a) Any 2025 surplus Current Operating funds at year-end in excess of approximately $125,000 be allocated in the following ratio: 30 percent to the Rate Stabilization Reserve (8007); 30 percent to the Facilities Reserve (8026); and 40 percent to the City Share DC Projects Reserve (8008); b) Any surplus funds from the Emergency Operational Capital Needs Account (11100.503510) to the Facilities Reserve (8026); c) Any revenue from the sale of used vehicles (11100.406600) to the Vehicle Replacement Reserve (8016); FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 3 d) Any surplus funds from Museum donations (10250.406500) and Artefact Repairs & Maintenance Account (10250.502385) to the Museum Collection Reserve (8033); e) Any green energy rebates and revenue associated with the Claremont solar roof rental project account (10325.404500.9480) and other incentives and rebates account (10325.406551) to the Reserve for Sustainable Initiatives; f) Transfer 50 percent of revenues collected from Municipal Accommodation Tax (MAT) after collection and administrative expenses (subject to Council’s approval of the tax) to the MAT Reserve (8042); g) An amount up to $665,716 from the Casino Reserve to fund the net cost of the Major Capital Facilities Cost Centre (10330); h) Where the 2025 year-end balance of the WSIB Reserve is greater than $4.0 million, the excess funds will be transferred to the WSIB Excess Indemnity Reserve Fund (8702); i) Where the 2025 actual investment income (10600.406000) exceeds the budget amount of $1,800,000, the excess funds will be transferred to the Balloon Payment Reserve (8039), to minimize future debt costs; j) Where the 2025 actual winter control costs exceed the budget, the deficit will be funded by a transfer from the Winter Control Reserve; k) Where the actual 2025 Property Tax Write-offs (account 11100.503000) exceed the budget provision due to assessment appeals, the deficit will be funded by a transfer from the Assessment Appeal Reserve (8002), and if this reserve is depleted, then the shortfall will be funded from the Rate Stabilization Reserve (8007); l) Where the actual 2025 Payment-in-Lieu Education Share revenues are less than the budget estimates, the deficit will be funded by a transfer from the Rate Stabilization Reserve (8007); 8. That the Director, Finance & Treasurer be authorized to: a) Undertake transactions in the spot or forward (12 months or less) currency markets in order to effect United States dollar denominated expenditures in the Current or Capital Budgets; b) Sign leases or rental agreements (including summer rentals) on the City’s behalf for the provision of vehicles or equipment required for temporary use during periods of equipment breakdown or repair or during periods of increased need (e.g. inclement weather); FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 4 c) Apply for all grants included in the 2025 Current Budget, 2025 Capital Budget, and prior year’s capital projects that have not started, and that Council endorse all future applications that meet senior government grant criteria and that staff report back to Council at the next possible meeting regarding which grants staff have applied to; d) Make any changes, or take any actions necessary, to ensure that the budget accommodates any reallocation of 2025 current operating expenditures and revenues that may be required to accommodate any labour relations settlements or any other required budget reallocations, while maintaining the approved levy; e) Adjust the 2025 final tax rates to address any revenue shortfall arising as a result of a provincial tax policy change; f) Initiate any additional assessment appeals necessary to protect the assessment base of the City; g) Apply any debt repayment, interest or financing provisions contained in the annual Current Operating Budget not used in the current year’s payments towards additional principal repayments, repayment of outstanding loans, debt charges, to reduce debt or internal loans not issued, or transfer funds to the balloon payment reserve; h) Adjust the per kilometer travel expense reimbursement rate (last increased in 2024) with an effective date of March 1, 2025, from 0.70 cents per kilometre to 0.72 cents per kilometre for the first 5,000 kilometres and from 0.64 cents per kilometre to 0.66 cents per kilometre for travel beyond 5,000 kilometres; 9. a) That Council approve the continuing engagement of Watson & Associates Economists Ltd., to be used for fiscal impact studies and related works, Development Charge Background Study updates and/or amendments, Community Benefit Charge Study updates and/or amendments and any other DC or CBC related matters; b) That Council approve the award of professional services in accordance with the City’s Purchasing Policy Item 10.03 (c) to Watson & Associates Economists Ltd., for the Development Application Approval Process (DAAP) study in the amount of $101,540 (net HST); 10. a) That Council approve the continuing engagement of the firm PSD Citywide Inc ., to be used for asset management consulting and other work in support of the City’s compliance with Asset Management legislation; FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 5 b) That Council approve the award of professional services in accordance with the City’s Purchasing Policy Item 10.03 (c) to PSD Citywide Inc. for the completion of the Asset Management Plan (AMP) to be completed in 2025 in an amount not to exceed $98,000 (net HST); 11. That Council approve the continuing engagement of the following firms: Nixon Poole Lackie LLP, Municipal Tax Equity (MTE) Consultants Inc. and MTE Paralegal Professional Corp for any studies related to reassessment or other property tax issues and to protect the property tax base by defending assessment appeals through proactive assessment base management; 12. That Council approve the following grants, which are exceptions to the Community Grant policy, and that these grants be funded from the General Government Grants to Organizations accounts 50305, 503050 and the Grants Contingency account: a) A grant to the Pickering Lawn Bowling Club, in the amount of $3,000, to purchase five sets of smaller bowls that weigh less for seniors to handle; b) A grant to Pickering Pentecostal Church, in the amount of $20,000, to be used for youth leadership programming, including retreats and camps throughout the spring and summer and seminars for both youth and their guardians concerning mental health, parental support and career planning; c) A grant to the Rotary Club of Pickering, in the amount of $10,000, to be used towards hosting the Pickering 2025 Ribfest; d) A grant to the Redeemed Christian Church of God – Fountainhead Chapel, in the amount of $4,500, to be used towards the purchase two classroom projectors, two projector screens, digital media and website maintenance, honorarium for five trainers and program software, supplies and accessories; e) A grant to the Canada SCORES Toronto, in the amount of $3,000, to be used to enhance the free after school program offered to the children of the Bayview Heights area, including the purchase of equipment, uniforms and a healthy snack program; f) A grant to the Pickering Islamic Centre, in the amount of $5,000, to be used towards hosting an annual event called “The Carnival”, including food stalls , retail stalls, gaming area for kids, live video game, small animal shows, etc.; g) A grant to Dedicated Advocacy and Resources Servies (DARS), in the amount of $50,000, to be used for food ($6,000), a storage unit ($3,300), kitchen appliances ($6,000), clients transportation ($2,000), footcare ($3,000), temporary housing ($4,000), living rough supplies ($5,000), first aid supplies ($1,000) and DARS farmhouse roof ($19,700); FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 6 h) A grant to Ontario Shores Foundation for Mental Health, in the amount of $25,000, to go towards raising funds for the renovation of live-in units for patients and their families and for technology upgrades including online educational courses for reinforcing skills at home and having interactive multimedia technology in psychiatric units to engage patients therapeutically; i) A grant to Durham Alliance Association Social Club, in the amount of $2,000 to be used towards the costs of hosting events and/or workshops held in Pickering, including facility rental, guest speaker fees and printing or communication costs related to the materials for Pickering workshop(s), with proof of third-party receipts to reimburse actual costs; j) A grant to the Royal Canadian Legion Branch #606 in the amount of $9,000 to be used to renovate the men’s washroom in the Banquet Hall to make it more accessible; k) A grant to the Royal Canadian Legion Branch #606 – Ladies Auxiliary in the amount of $9,000 to be used to renovate the ladies washroom in the Banquet Hall to make it more accessible; l) A grant to the Pickering Palestinian Association in the amount of $4,500 to be used towards the cost of hosting the following events: City of Pickering Cultural Fusion, Hoops with PPA, and a summer outdoor event partnering with autism groups in Durham Region, including the cost for renting tents, AV equipment, tables and chairs, entertainment and trophies; 13. That FIN 040 Community Grant Policy be amended by adding the following additional provisions and the change to the policy be effective for the 2026 Community Grants program; a) That the grant application deadline date for the 2026 Community Grant Program be September 26, 2025, to give community groups sufficient time to complete their applications; b) That, for the 2026 budget and future years, that the provision of meals not be an eligible expense to be funded under the Community Grant Program and City programs; c) That the exclusion of organizations (from the City’s grant program) that receive bingo revenues not apply to those agencies that provide counselling or mental health services; 14. That Council waive the Purchasing Policy retroactively to January 1, 2024 where the estimated vehicle repair cost is below $30,000 (HST excluded) for all fleet vehicles and off road vehicle equipment in 2025, however, a purchase order is still required; 15. That Council authorize the Director, Finance & Treasurer to fund the Bill 23 Development Charge revenue loss for 2024 in the amount of $3,258,746 from the FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 7 Casino Reserve to the various Obligatory Development Charges Reserve Fund category accounts, as provided for in the 2024 and 2025 Budget: a) The amount of $964,194 due to the Bill 23 fee reduction incurred in 2024; b) The amount of $2,294,552 due to the Bill 23 exemption for Non-Profit Corporations as provided under section 4.2(2) of the Development Charges Act (1997); 16. That Council approve the Building Faster Fund (BFF) Investment Plan for 2025 that is included in the 2025 Capital Budget in the amount of $4,925,000, and that, if the City is not successful in obtaining BFF funding (earned in 2024 and anticipated to be received in 2025), that the funding shortfall be adjusted at the discretion of the Director, Finance & Treasurer; 17. That Council approve the following change to the Financial Control Policy (FIN 030): That construction related Purchases change orders require the following approvals based on dollar limits and that the Chief Administrative Officer is authorized to act on behalf of Council during any recess, break or absence of Council: a) Up to $99,999 – approval by Department (Director/Manager) b) $100,000 to $249,999 – approval by the CAO and Director, Finance & Treasurer c) $250,000 and above – Council approval is required; 18. That Council approve the award of professional services in accordance with the City’s Purchasing Policy Item 10.03 (c) to TYLin International Canada Inc. to undertake the Foundation Drainage Discharge Policy in the amount, not to exceed $150,000 (net HST), as approved in the 2025 Current Budget; 19. That Council approve the change of funding source for capital projects C10575.2503 (Sideline 16 South of Fifth Concession) in the amount of $75,000 and C10575.2504 (Sideline 16 North of Fifth Concession) in the amount of $85,000 from the Development Charges Transportation Reserve Fund to the Roads & Bridges Reserve Fund; 20. That Council approve an amendment to the General Municipal fees and Charges By - law 6191/03 as set out in Attachment 1 to Report FIN 02-25 to reflect the following changes: User Fee Change 2025 Approved Fee (excluding HST) 2025 Amended Fee (excluding HST) Other Fees Peer Reviews Increase admin. fee from 10% to 15% Full recovery of City costs + 10% admin. fee Full recovery of City costs + 15% admin. fee Zoning By-laws FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 8 Council adopted Consolidated Zoning By-law-Text Delete fee $50 N/A Council adopted Consolidated Zoning By-law-Full set of Schedules Delete fee $100 N/A 8149/24 – Set. 4 Volumes New fee N/A $1,330 8149/24 – Set. Volume 1 New fee N/A $150 8149/24 – Set. Volume 2 Schedules New fee N/A $100 8149/24 – Set. Volume 3 Exceptions New fee N/A $600 8149/24 – Set. Volume 4, Exceptions New fee N/A $500 21. That the City’s share of the Municipal Accommodation Tax be used to replace Rate Stabilization Reserve funding for tourism-related events for the 2026 Current Budget; 22. That Council approve an increase to the Capital Budget for C10315.2112 (1 Ton Truck with Utility Body Replacement) approved in the 2021 Capital Budget and funded from the Vehicle Replacement Reserve from $130,000 to $200,000; 23. That Council approve the Capital Budget for C10572.2511 (Community Improvement Initiative) in the 2025 Capital Budget, and funded from the Casino Reserve in the amount of $300,000 for the construction of outdoor fitness equipment ($100,000 for each ward); 24. That Council approve the amended funding agreement between the Northeast Pickering Landowners Group Inc. and the City of Pickering for the salary and related costs of a Senior Project Manager (contract) dedicated to managing the preparation of the overall community plan for the Northeast Pickering Area, generally as set out in Attachment 2; 25. That Council endorse the principle that when City policies are at cross purposes as it relates to financial planning and budgets, that the guiding principle shall be that investments in municipal infrastructure that’s provides a safe environment for our residents and staff shall be given priority; 26. That any Naming Rights revenues associated with the Pickering Heritage & Community Centre be applied towards the annual City share of debt charges for this facility; FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 9 27. That Council approve an additional grant in the amount of $500 to St. Paul’s on -the-Hill Community Food Bank to be funded from the return of $500 (unspent dollars) from Pickering-Ajax Caremongers 2023 grant; 28. That Council approve the award of Q2024-55 for the Replacement of HVAC Units AC3, AC2 and C1 at George Ashe Library and Community Centre (GALCC) as submitted by Bird Infrastructure Ltd., for a net HST cost of $497,904 and that the project funding shortfall of $254,548 be funded from the Capital Operational Emergency Needs account (503510.11100); and, 29. That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: The purpose of this report is to seek the authorizations and directions necessary to implement the 2025 Financial Plans as reflected in the 2025 Current and Capital Budgets. Under the Strong Mayors legislation, the budget was deemed adopted on December 30, 2024. Many of the recommendations in this report are similar to the 2024 Financial Housekeeping Report (FIN 06-24). The foundation of this report is based on the Mayor’s 2025 budget with a levy increase of 3.75 percent. Table One provides a comparison of the 2025 levy increases for Durham Lakeshore municipalities is presented below. Table One 2025 Budgetary Levy Increases Pickering 3.75% Whitby 3.99% Clarington 5.19% Ajax 5.78% Oshawa 7.87% For many years, Pickering had the lowest property tax rate among the Durham Lakeshore municipalities and the City will maintain its record based on the 2025 budget levy increases. (It should be noted, that prior to the receipt of casino funding, that for many years, Pickering had the lowest property tax rate). Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Corporate Key to Deliver on Good Governance – Open & Transparency. FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 10 Financial Implications: There are no additional costs associated with the adoption of the recommendations. However, if the recommendations are approved by Council, this will enhance the transparency and accountability of City operations from a financial lens for this year and future years. Discussion: The purpose of this report is to seek the authorizations and directions necessary to implement the 2025 Current and Capital Budgets. Under the Strong Mayors legislation, the budget was deemed adopted on December 30, 2024. Explanation of Key Recommendations Possible Draw from Building Permit Reserve Fund – Recommendation 2 The 2025 Budget assumes that there will be a positive economic environment (no recession) for the year. This assumption is an important budget building block due to the City’s reliance on building permit and planning fees. Chart One provides a financial summary of planning and building permit fees from 2020 up to and including the 2025 Budget . Chart One Building Permit & Planning Fees The financial impact of the pandemic is reflected in the earlier years. The 2025 budget for building permit and planning fees is approximately $7.7 million. This represents 25.5 percent of the total departmental revenues. The Building Services cost centre is fully funded from $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 2020 2021 2022 2023 2024 YTD 2025 Budget Building Permit Fees Planning Fees FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 11 building permit fees. In other words, there are no taxpayer dollars required to fund this operation. Any economic slowdown due to negative activity such as the implementation of tariffs or tariff related events could have an impact on building activity that may result in a decrease in building permit fees. Any economic slowdown would also impact on future assessment growth due to the fact that a weaker economy does not translate into consumer confidence which is usually required when making the largest purchase of an individual’s or family’s life. The purpose of the Building Permit Reserve Fund is to provide financial resources if building activity in a municipality slows down, and these dollars will ensure that there are sufficient funds to maintain building department services for a time without affecting the municipality's finances or staffing. Recommendation 2 provides the Treasurer the authority to draw from the Building Permit Reserve Fund to address any revenue (fees) shortfall and to maintain the 2025 Budget plan. Cancellation of Capital Projects – Recommendation 3 The capital projects listed in Recommendation 3 and in the table below, in many cases have been re-budgeted in the 2025 Capital Budget or 2026 – 2034 Capital Forecast because the original budget amount was too low (due to project delays or higher construction costs), or the project was delayed to other external factors. In other cases, the project was deferred or not required due to operational changes in the year. Project Number Description Unspent Budget Amount C10700.2018 Seaton North FS - Land $1,400,000 C10700.2305 Seaton Fire Station B Land Purchase $1,350,000 C10700.2401 FS #5 Replacement $4,600,000 C10225.2402 New Pilates Reformer Machines $23,000 C10240.2306 Server Room FM200 System Replacement $77,000 C10300.2302 EV Charging Stations - Operations Centre $77,000 C10305.2407 1 Ton Dump Truck with Aluminum Body and Crane $175,000 C10305.2408 Utility Truck $150,000 C10315.2413 4 Ton Dump Truck Roll-off Body $350,000 C10600.1903 Purchase of Land - Pickering Innovation Corridor $9,000,000 Approval to Attend International Conferences – Recommendations 4 a), b) and c) FIN 030 Finance Control Policy requires Council approval for all out of country conferences and this policy applies to all City and Library staff. FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 12 It’s well known that technology advancements continues to grow at an almost exponential pace. For the past decades, municipalities have been faced with the challenge as to how to stay abreast of the changing technology and to translate these advancements into benefits for the municipality. Today’s technology conferences consist of technology driven workshops (classrooms) where new trends and advancement for computer systems, software and security are presented and discussed. The SAP Sapphire Conference is one of the premier events as it relates to enterprise software and technology. Attending the SAP Sapphire Conference offers the Manager, ERP a unique opportunity to stay updated on the latest trends and developments in SAP software. In addition, the conference provides an opportunity for networking, connecting with municipal peers and experts, and to gain the knowledge and resources needed to drive business success. Several Ontario Municipalities that have implemented SAP sent delegations in the past and have commented on the benefits of attending this conference . The International Economic Development Council (IEDC) Annual Conference offers economic developers valuable networking opportunities, access to expert -led workshops, and exposure to the latest trends and innovations in the field. It provides a platform for learning best practices, gaining insights into global economic trends, and discovering new tools and resources to enhance project effectiveness. The conference also offers professional development opportunities, including certifications and policy updates , helping attendees stay informed and grow their careers in economic development. Staff will collaborate with fellow economic development individuals across North America and participate in various business retention and foreign direct investment learning opportunities and networking events. APTA's TRANSform is the flagship event for public transportation professionals to engage in workshops, experience technical tours, and network with colleagues. Keynote speakers and educational sessions explore cutting-edge hot topics, including transformative technology, mental health awareness, community building, innovative funding, safety and security, workforce development, worldwide mega projects, and more. APTA EXPO is the public transportation industry’s long-standing, premier resource for advancing mobility systems through a robust showcase of the latest-breaking technologies, products, and services. It provides solutions to increase and retain ridership, reinvent the rider experience, infuse technology to enhance convenience, improve security, transition to a more sustainable system, boost system-wide reliability, and more. Economic Development & Strategic Projects are engaged on a number of transportation projects including North Durham Transit and High Frequency Rail. APTA TRANSform will allow staff to engage with relevant stakeholders in the industry and understand best practices to strengthen advocacy efforts of bringing transit to Pickering Engaging Watson & Associates to assist City staff to complete the Development Application Approval Process (DAAP) – Recommendation 9 b) Recommendation 9 b) seeks Councils approval for the award of professional services in accordance with the City’s Purchasing Policy Item 10.03 (c) to Watson & Associates Economists Ltd., for the Development Application Approval Process (DAAP) study in the amount of $101,540 (net HST). Watson & Associates Economist’s Ltd has extensive FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 13 experience in the development of full cost of service models and adoption of full-cost or policy driven user fees in over 65 Ontario municipalities and conservation authorities, including over 40 reviews since the beginning of 2021. Furthermore, the firm’s extensive experience in recent years working with municipalities as across the GTA demonstrates their understanding of the current planning application review environment, including how the delivery of services has evolved between the Region and lower tier municipalities with changes made to the Planning Act since Bill 109 through to Bill 185. The DAAP study will assess the full cost of service, providing valuable input to City staff and Council of the true cost and funding sources of the development review process to inform future budgeting and service level decisions. The full cost of service assessment informs the development application fee structure recommendations, including the exploration of fee structure improvements, and new fees to improve cost recovery and better align cost recovery with the beneficiaries of service received. Fee structure changes and improvements will be made in the context of municipal comparators (to consider applicant affordability), the full cost of service and cost recovery policies, legislative changes (e.g. changes to planning application review processes as a result of Bill 23 and Bill 85), and recent changes such as investments in infrastructure technology and other changes to review processes such as more robust pre -application consultation involvement identified in prior updates undertaken for the City. It is expected that the fee structure recommendations will increase revenue, mitigating the tax-based funding support for the development review services that currently exists and providing for a sustainable building permit review reserve fund. A better understanding of costs and full cost recovery fees has also allowed municipalities to increase their staff compliment in response to increased development applications without tax funding support. Transfer of $3,258,746 from the Casino Reserve to Fund Bill 23 shortfall – Recommendation 15 Bill 23, More Homes Built Faster Act, 2022, has had a significant financial impact on the City of Pickering. The legislation was introduced in November 2022 and impacted municipalities who had passed a new Development Charge (DC) By-law as of January 2022. Since Bill 23 has been enacted, the City has incurred a total loss of $7,016,751. Year to Date Revenue Loss Due to Bill 23 DC Fee Reduction: 2023 $3,758,095 2024 964,104 $4,722,199 DC Exemptions 2,294,552 Year to Date Total $7,016,751 FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 14 The majority of the loss has been due to the DC Fee Reduction or “haircut”, where the City was legislated to reduce its DC fee and had to fund the revenue loss. The loss was funded by casino dollars. The legislated DC fee reduction was eliminated as of June 4, 2024 and therefore, capping the fee revenue loss. However, municipalities are still responsible to fund the DC fee exemption for non-profit housing. The $2.29 million loss is the City’s cost for the lost DC fees attributable to the Trillium Housing Oak Non-Profit Corporation. 2025 Building Faster Fund Investment Plan – Recommendation 16 The Building Faster Find (BFF) is a provincially funded program designed to reward municipalities that enable home construction, based on meeting its provincially assigned housing targets. It is a three-year program that will provide $400 million per year to municipalities that have achieved 80 percent or more of their annual housing targets. The funds are awarded based on the percentage of the housing targets met, with bonuses for exceeding the target (up to a maximum of 25% over target). In 2023, Pickering experienced 1,502 new housing unit starts, exceeding their target of 951 units by 58 percent. As a result, the City received the maximum funding allocation available, $5.2 million for 2024. Council approved the BFF 2024 Investment Plan at its September 29, 2024 Council Meeting (Report FIN 18-24). The capital projects approved in the BFF 2024 Investment Plan total $4,550,000, with the remaining grant funds of $650,000 to be carried over to 2025 to be utilized for 2025 capital projects. Staff’s preliminary estimate, based on 2024 housing construction activity, indicates that the City will again exceed their housing target for 2024 and would be entitled to receive approximately $4.2 million in BFF funding in 2025. The table below identifies the proposed capital projects included in the City’s BFF 2025 Investment Plan, subject to the provincial approval. The projects total $4,925,000. Project # Project Name Budget C10570.2505 Creekview Circle – Asphalt Resurfacing $510,000 C10570.2506 Rosebank Road - Asphalt Resurfacing $460,000 C10570.2507 Douglas Avenue - Asphalt Resurfacing $320,000 C10570.2508 Sunrise Avenue - Asphalt Resurfacing $490,000 C10570.2509 Storrington Street - Asphalt Resurfacing $350,000 C10570.2511 Echo Point Court - Asphalt Resurfacing $210,000 C10570.2512 Greenburn Place - Asphalt Resurfacing $600,000 FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 15 C10570.2513 Linwood Street - Asphalt Resurfacing $435,000 C10570.2514 Lodge Road - Asphalt Resurfacing $570,000 C10570.2515 Fairview Avenue – Reconstruction $75,000 C10570.2516 Vistula Drive - Asphalt Resurfacing $430,000 C10570.2517 Garvolin Avenue - Asphalt Resurfacing $475,000 Total $4,925,000 Recommendation 16 seeks Council’s approval of the BFF Investment Plan for 2025 that is included in the 2025 Capital Budget in the amount of $4,925,000, and that, if unsuccessful for the 2025 BFF grant, the funding source will be adjusted at the discretion of the Director, Finance & Treasurer. Enhancing the City’s Financial Control Policy – Recommendation 17 The post COVID era has resulted in substantial increases in construction costs translating into higher construction contingency budgets. Contingency budgets are based on a percentage of the construction budget and these contingency budgets can be several millions . Currently there are no dollar limit approvals required as it relates to a contingency budget expenditure . Recommendation 17 establishes dollar limits for construction purchase change orders. The introduction of these dollar limits will provide the following benefits: 1. Cost control: Dollar limit approvals help maintain better control over project costs by requiring higher-level approval for changes that exceed predetermined thresholds. This ensures that significant cost increases are carefully scrutinized before being approved. 2. Risk management: Dollar limit approvals help mitigate financial risks by preventing unauthorized or excessive spending on change orders. This is particularly important for large-scale projects where costs can quickly escalate. 3. Budget adherence: The approval process helps keep projects within their allocated budgets by requiring justification and authorization for changes that may impact the overall project cost. 4. Improved communication: The approval process encourages better communication between project stakeholders, as significant changes require discussion and justification before approval. 5. Data-driven decision making: By tracking change orders and their associated costs, organizations can gather valuable data to inform future project planning and budgeting decisions. FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 16 The City’s external auditor has been consulted with these proposed changes and is in support of the new policy. Foundation Drainage Discharge Policy – Recommendation 18 Recommendation 18 is seeking Council’s to approve the award of professional services in accordance with the City’s Purchasing Policy Item 10.03 (c) to TYLin International Canada Inc. to undertake the Foundation Drainage Discharge Policy, in the amount not to exceed $150,000 (net HST), as approved in the 2025 Current Budget. Staff have reviewed and are recommending approval of the fee proposal submitted by TYLin International Canada Inc . for the Foundation Drainage Discharge Policy. The objective of this policy is to preserve conveyance capacity and water quality in the City’s storm sewer system through an approach that prohibits temporary and long -term groundwater discharge from high-rise developments to City storm sewers. The need for this policy has arisen from recent trends in housing intensification whereby high-rise developments with multiple underground parking levels are being constructed with foundation drainage systems . Prioritize Investments in municipal infrastructure that’s provides a safe environment for our residents and staff – Recommendation 25 There are always competing interests in the development of the annual municipal budget where the dollar “asks” exceeds the budget target and or budget provision . Enhancements, enrichments and new programs are in competition for scarce budget dollars. As stated above, to keep the annual levy increase at a moderate level, there needs to be a definitive guiding principle. Recommendation 25 will assist in the budget development phase and save staff time by prioritizing infrastructure spending for the safety of our residents and staff. PHCC Naming Rights revenues to be applied towards the City Share of Debt Charges – Recommendation 26 The funding strategy for PHCC includes grants, DC debt (growth related) and City share debt (which is taxpayer funded). The estimated City share annual debt charges is approximately $640,000 per year for the next twenty years. The potential naming rights revenue is directly linked to the facility and therefore, these revenues should be applied to help fund the facility. Explanation of Key Issues Update to the Development Chart Background Study and Community Benefit Charge Study The City of Pickering charges Development and Community Benefit fees to new/repurposed development to fund the growth-related capital costs. Under the Development Charges Act, 1997, municipalities are required to prepare a Background study to establish the growth forecast, capital costs and then calculate the charge that new development needs to pay to fund the cost of this new infrastructure. FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 17 The city completed its last background studies in July 2022. Since then, several factors have caused a significant increase in the capital costs required to be funded from Development Charges and Community Benefit Charges: • Council priorities have been clarified to include direction for Pickering Heritage & Community Centre (PHCC) and possible new initiatives such as Petticoat Creek Conservation Area; and • Inflationary cost pressures on major capital facilities projects have reached unprecedented levels. The legislation allows municipalities to increase the fees annually to reflect the impact of inflation on project costs, using Statistics Canada’s Non-Residential Building Price Index (NRCPI). Prior to 2020, the ten-year average of the NRCPI was 2.61 percent. However, since COVID, construction prices have escalated at rates not seen in decades across the province . In 2021 and 2022 the NRCPI averaged almost 15 percent per year. Chart Two Historical Non-Residential Building Construction Price Index Even with the annual allowable increases to the Development Charges fees, the additional revenues from the fees do not compensate fully for the inflationary pressures facing the City’s capital program. The tender results for PHCC which saw the prices come in 158 percent over the initial budget included in the 2022 Development Charge Background Study . Similarly, the budget for Seaton Recreation Complex & Library was increased by $119 million or 103 percent to reflect the current cost environment . A scan of other municipalities has seen similar results for tenders on the construction of recreation complexes throughout 2023. 0.00% 2.50% 5.00% 7.50% 10.00% 12.50% 15.00% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 NRBCPI 10 Yr. Average FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 18 Finance staff have undertaken preliminary work as it relates to DC fees and the estimated DC debt charges for the Seaton Recreation Complex & Library. The preliminary results indicate that our current fees are not sufficient or adequate to the meet the DC annual debt payment obligations (principal and interest). In other words, the City cannot entertain building the new Seaton Recreation Complex & Library until the DC & CBC Study with the corresponding fee increase is completed. Good News! – There Appears to be No Reassessment Planned for 2025 In 1998, the Province of Ontario introduced the new Ontario Fair Assessment System (OFAS). The purpose of this new assessment system was to eliminate the historical inconsistent measure of property values across the Province and to enhance the level of fairness and equity into the assessment and property tax system. The new assessment system uses a Province-wide valuation date to establish the theoretical value of each property (structure/land) based on the principle that the value of the property is determ ined between a willing buyer and seller from an arm’s length transaction perspective. Last year (2024) was the ninth year of the Province’s four-year reassessment cycle. The current value assessment is based on a valuation date of January 1, 2016. Assessment - related increases are phased-in over four years, and assessment-related decreases are implemented immediately. The City does not receive any additional revenue as a result of reassessment. The corresponding property tax rates are adjusted for the increase in reassessment values to create an overall property tax neutral position on a tota l property class basis. Inevitably, when there is an overall change in assessment values, there is shifting of the property tax burden among property classes, and as well among individual property owners within each property class. Staff’s preliminary analysis indicates, that when the re- assessment is implemented, that will probably be a shift in property tax responsibility (dollars) from the commercial to the industrial property tax class due to the simple reason that cost of residential housing has increased at a faster rate than commercial properties. On the front page, on the bottom left corner, of the Final Residential Property Tax Bill is a schedule entitled “Explanation of Tax changes from 2024 to 2025”. This schedule includes a line called Tax change due to Reassessment and this line will be zero for this year. Historically, the annual Provincial Budget has been the trigger for the announcement of the next reassessment cycle. The most recent Provincial Budget was silent on the next reassessment and therefore, it appears that there will not be a reassessment for 2025. Consulting and Professional Fees The City engages consultants where specialized expertise and/or technology is needed that is not available within the City’s internal resources. One of the advantages of using consultants is that they can bring experiences or “lessons learned” from other municipalities that would benefit the City and potentially reduce costs. Consultants usually work alongside City staff to deliver services in an efficient and timely manner. Consultants may include experts in several areas, including strategic planning, FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 19 planning & design, engineers and building specialists, IT specialists and finance & accounting experts (development charges, accounting standards and asset management). Below is a summary of the City’s gross and net actual consulting and professional costs for the last three years. Please note that under the City’s “Chart of Accounts” there is only one account that captures both consulting and professional fees. In other words, this account captures both expense types: consulting and professional fees. Professional fees include the provision of external audit and legal fees. Therefore, when viewing the actual costs, the reader has to consider that the account information does not represent only the consulting component. Consulting and professional costs can be funded from several sources, including property taxes, federal and provincial grants, third-parties, reserve funds and reserves. As you can see from the above summary, the City’s spending on consulting and professional services and the percentage funded by property taxes can vary from year to year . The 2022 actuals, as expected, are lower, due to the fact, that year still included the effects of COVID on City operations. The higher actual consulting costs for 2023 largely reflect the increase in government grants and third-party recoveries that the City received, and consulting carryovers from 2022. For 2024, the percentage of property tax funded costs for consulting and professional fees is lower (49%) compared to 2022 (76%) and 2023 (71%) as many of the consulting services provided in 2024 were funded from Reserves and Reserve Funds for growth related studies and Asset Management Planning purposes. Actuals Actuals Year to Date Line #Box A 2022 2023 2024 Gross Vs. Net Cost A Gross Cost 2,971,426$ 4,511,155$ 3,459,357$ Net Cost B Property Tax Funded 2,257,003$ 3,211,407$ 1,681,732$ C = A/B % Property Tax Funded 75.96%71.19%48.61% Box B Net Cost As a Percentage of Total Expenditures D Gross Cost 2,971,426$ 4,511,155$ E Total City Expenses 111,683,561$ 132,877,982$ Consulting & Professional Fees F = D/E As a % of Total Expenses 2.66%3.39% Analysis of City's Consulting & Professional Fees FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 20 For “Box A”, the above analysis, indicates that when reviewing consulting and professional fees, there are actually two figures to consider: gross and net. The net amount reflects what is being paid for by Pickering taxpayers. For “Box B,” when you compare the gross spending to the total City expenses, actual consulting and professional fee expenditures is relatively low. In other words, for every dollar in expenditures, the City is spending less than 3.5 cents on professional and consulting fees. Debt Capacity and Annual Repayment Limit (ARL) Pickering is currently in a growth building phase due to Seaton that, in -turn, puts pressure on the City to provide services. In addition, the City now has to invest significant capital dollars to replace existing aging infrastructure. The City also has to take into consideration the current high construction cost of capital infrastructure and replacements. A perfect financial storm of new and old. The proper use of debt is an essential component of the City’s fiscal strategy. The use of debt promotes intergenerational equity. By borrowing, Pickering can distribute the cost of the asset over the lifetime of the asset. Debt is one of the several capital funding tools available to municipalities . When used responsibly, it can be a powerful tool to help finance long -term capital needs. Debt is an important part of the City’s strategy for investment in assets that have a long -term useful life. It is important to note that while debt is a funding source for capital, the amount owing, plus the related interest, must be paid in future years from operating funds. Debt is a trade-off between increased fiscal flexibility in the short-term versus reduced fiscal flexibility over the payment term. Please find below in Table Two an estimated financial snapshot of the City’s debt picture as of December 31, 2026. This table does not include the Seaton Recreation Complex & Library. The financial impact of the Seaton Recreation Complex & Library will be addressed in a future report to Council. FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 21 Table Two City’s Estimated Debt Summary as of December 31, 2026 (Excluding the Seaton Rec Complex & Library) Several of the above listed capital projects, are not at the tender stage and therefore, the cost used in the above analysis is a projection. There is a financial risk that, once these projects are tendered, the tendered cost may exceed the budget resulting in additional financial pressure. Report FIN 03-24 outlined the debt strategy for the Pickering Heritage & Community Centre (PHCC) whereby the City would delay the issuance of external debt until the last quarter of 2025 where it is anticipated that the interest rates would have decreased from their 2024 peak. At this current time, PHCC project is being cash flowed from existing reserves and reserve funds. The Municipal Act through Regulation 403/02 permits a maximum of 25 percent of net operating revenues to be used to fund principal and interest charges for debt. This is called the Annual Repayment Limit or ARL. For Pickering, the net operating revenues consists of the following major items: Taxpayer Growth Debt DC (Debt)Total Current Debt Issued as of December 31, 2024 38,402,116$ 17,218,000$ 55,620,116$ PHCC (Est.)8,367,000 16,522,000 24,889,000 Prior Commitments (With Additional Funding) Fire Station 5 11,300,000 11,300,000 Animal Shelter 10,265,000 10,265,000 Draft Capital Budget 2025 - Municipal Land commitments 3,588,900 3,588,900 Northern Satellite Facility 663,000 663,000 Draft Forecast 2026 Capital Budget - City Hall Tower Retro Fit 3,930,000 3,930,000 Fire Pumper 2,242,500 2,242,500 Municipal Land commitments 2,966,500 2,966,500 Vehicles - 710,000 710,000 Total 61,999,116$ 54,175,900$ 116,175,016$ Increase over 2024 (December 31)61.45%214.65%108.87% FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 22 • Property tax revenue • User fees and charges • Fines, penalties and interest on taxes • License fees, permit fees and rent • Gaming and casino revenues Every year, as the budget levy increases, the City’s net operating revenues increase, and that in-turn results in an additional debt capacity. Over the last seven years, the City has maintained a steady course as it relates to debt use and has maintained its debt level below 5 percent of the maximum allowed of 25 percent. The financial strategy of being prudent and cautious has served the City well as it relates to its management of debt. With the addition of a new revenue source (casino revenue), the City can now proceed to consider, to a certain degree, and expanded use of debt. Ontario Regulation 403/02 does permit municipalities to appeal to the Ontario Land Tribunal (OLT) to exceed the 25 percent limit. The use of this path by municipalities is rare. Staff are aware of two situations whereby municipalities requested an exemption to exceed the limit to borrow funds to install water and sewer infrastructure. On other words, the higher capital costs were directly funded by corresponding water and sewer rates and this revenue stream has a low risk of default and or failure. Chart Three below presents a projection of the City’s ARL based on the 2025 Capital Budget and planned capital expenditures for 2026 excluding the Seaton Rec reation Complex & Library. The City’s (Council endorsed) debt guideline is 17.5 percent. Chart Three City’s Debt Capacity Measured Against the ARL Limit 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 ARL City %Projection City Target FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 23 Currently, interest rates are slightly higher than in the recent past and the Bank of Canada has indicated that there may be future interest rate reductions. As a result, the current financial debt strategy is to defer the issuance of debt until the beginning of 2026 for major projects such as the PHCC, major fire vehicles, replacement of Bayly Street Fire Station #5 and the new animal shelter. The financial impact of the debt issuance delay is reflected in the above chart where there is a substantial upward increase in the ARL line for 2026. However, it should be noted that this plan will be monitored and the timing of the borrowing may change depending on actual project activity and cash flow requirements . Casino Revenues Update The City has been receiving casino revenues from Ontario Lottery Corporation since 2021. Chart Four provides the casino revenue history for the City that includes the most recent payment for the last quarter of 2024. Chart Four Casino Revenue History The total casino revenues for 2023 was $18,460,408 and for 2024, it is $17,451,454 – a decrease of $1,008,954. Hopefully, the introduction of the Pickering Porsche Experience Centre will reverse this trend. For this current term, Council passed a motion to share the casino revenues with Durham Region. In 2023, Durham Region received $4,280,204 and for 2024, the payment amount is estimated to be $3,725,727 – a decrease of $554,477 over last year. The two-year total casino payments to Durham Region is $7,955,931. $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 2021 2022 2023 2024 FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 24 2026 Current & Capital Budget & 9 Year Forecast The goal is to present the Mayor’s 2026 Budget by November 28, 2025. Similar to the 2025 budget, staff would deliver the budget binders to Councillors on November 2 8th and post the complete document on the City’s website on the same day. If required, a possible meeting day to discuss the 2026 budget could be December 15th, which is also the scheduled Council meeting day for that month. The budget work plan is to start working on budgets in June, with the Senior Staff Recommended Capital Budget Book to be po sted on the City’s website in early November to solicit the feedback from Pickering residents. Asset Management Ont. Reg. 588/17 Ontario Regulation 588/17 establishes a deadline on or before July 1, 2027, for municipalities to have an approved asset management plan for all municipal infrastructure assets . This includes identifying proposed levels of service, outlining the activities needed to meet these levels of service, and developing a strategy to fund these activities . There is a City-wide management team already working on this project to meet the reporting deadline. One of the requirements under this regulation is to have a 10 year capital forecast which the City has already completed as part of the 2025 Capital Budget exercise. Attachments: 1.By-law to Amend By-law 6191/03 to Confirm General Municipal Fees 2.Northeast Pickering Senior Project Manager Position Funding Agreement Amendment Prepared By: Approved/Endorsed By: Jason Bekramchand James Halsall Senior Budget and Financial Analyst Division Head, Finance Stan Karwowski Director, Finance & Treasurer Original Signed By Original Signed By Original Signed By FIN 02-25 January 27, 2025 Subject: 2025 Financial Housekeeping Report Page 25 Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. Chief Administrative Officer Original Signed By Attachment 1 to Report FIN 02-25 The Corporation of the City of Pickering By-law No. 8156/25 Being a by-law to amend By-law 6191/03 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, By-law 7824/21, By-law 7918/22, By-law 7983/23, By-law 8119/24; By-law 8140/24, and By-law 8148/24: Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1.Schedule “I” to By-law 6191/03, as amended, is hereby revised by deleting fee titled “Council adopted Consolidated Zoning By-law - Text” under Zoning By-laws within City Development - Planning as set out in Schedule “I” attached hereto. 2.Schedule “I” to By-law 6191/03, as amended, is hereby revised by deleting fee titled “Council adopted Consolidated Zoning By-law – Full set of Schedules” under Zoning By- laws within City Development - Planning as set out in Schedule “I” attached hereto. 3.Schedule “I” to By-law 6191/03, as amended, is hereby revised by adding a new fee titled “8149/24 – Set, 4 Volumes” under Zoning By-laws within City Development - Planning as set out in Schedule “I” attached hereto. 4.Schedule “I” to By-law 6191/03, as amended, is hereby revised by adding a new fee titled “8149/24 - Volume 1” under Zoning By-laws within City Development - Planning as set out in Schedule “I” attached hereto. 5.Schedule “I” to By-law 6191/03, as amended, is hereby revised by adding a new fee titled “8149/24 - Volume 2, Schedules” under Zoning By-laws within City Development - Planning as set out in Schedule “I” attached hereto. 6.Schedule “I” to By-law 6191/03, as amended, is hereby revised by adding a new fee titled “8149/24 – Volume, 3 Exceptions” under Zoning By-laws within City Development - Planning as set out in Schedule “I” attached hereto. By-law No. 8156/25 Page 2 7.Schedule “I” to By-law 6191/03, as amended, is hereby revised by adding a new fee titled “8149/24 – Volume, 4 Exceptions” under Zoning By-laws within City Development -Planning as set out in Schedule “I” attached hereto. 8.Schedule “I” to By-law 6191/03, as amended, is hereby revised by changing the fee for Peer Reviews from “Full recovery of City costs+ 10% admin. fee” to “Full recovery of City costs+ 15% admin. fee” under Other Fees within City Development - Planning as set out in Schedule “I” attached hereto. By-law passed this 27th day of January, 2025. _____________________________________ Kevin Ashe, Mayor _____________________________________ Susan Cassel, City Clerk Schedule I City Development - Planning User Fee or Chage 2024 Fee (Excluding HST) 2025 Fee (Excluding HST) HST Applicable (Y/N) 2025 Fee Effective Date Zoning By-laws Council adopted Consolidated Zoning By- law - text New $50.00 Y January 1, 2025 Council adopted Consolidated Zoning By- law - Full set of Schedules New $100.00 Y January 1, 2025 8149/24 - Set, 4 Volumes New $1,330.00 Y January 27, 2025 8149/24 - Volume 1 New $150.00 Y January 27, 2025 8149/24 - Volume 2, Schedules New $100.00 Y January 27, 2025 8149/24 - Volume 3, Exceptions New $600.00 Y January 27, 2025 8149/24 - Volume 4, Exceptions New $500.00 Y January 27, 2025 Other Fees Peer Reviews Full recovery of City costs + 10% admin. fee Full recovery of City costs + 10% admin fee Full recovery of City costs + 15% admin. fee Y Y No increase January 27, 2025 4917-2707-8657, v. 6 NORTH EAST PICKERING SENIOR PROJECT MANAGER POSITION FUNDING AGREEMENT FIRST AMENDING AGREEEMENT This AMENDING AGREEMENT is dated the 15th day of January, 2025. BETWEEN: THE CORPORATION OF THE CITY OF PICKERING (hereinafter referred to as the “City”) and NORTH EAST PICKERING LANDOWNERS GROUP INC. (hereinafter referred to as the “Trustee”) RECITALS: A.The Trustee represents owners of land listed in Schedule “A” of this Amending Agreement (the “Owners”). B.The Owners’ lands are located in the north east area of the City of Pickering identified and depicted on Schedule “B” of this Amending Agreement within the thick red line (the “North East Pickering Area”). C.The Trustee, on behalf of the Owners, and the City are the current parties to the North East Pickering Senior Project Manager Position Funding Agreement dated October 18, 2021 (the “Original Agreement”). D.The Owners originally entered into the Original Agreement to confirm the manner in which the Owners, through the Trustee, will front-fund the fees and expenses of a senior project manager (the “City’s Project Manager”) to assist the City in the completion of a proposed community plan for the North East Pickering Area (the “Community Plan”). E.The Original Agreement contemplated a term of employment of the City’s Project Manager of three (3) years and allowed for extensions in six (6) month increments. F.The original term of employment of the City’s Project Manager contemplated in the Original Agreement has expired and the Trustee, on behalf of the Owners, and the City have agreed to amend the terms of the Original Agreement to extend the term of employment of the City’s Project Manager by twenty four (24) months and clarify certain provisions in the Original Agreement, as set out in this Amending Agreement. G.The City is authorized to execute this Amending Agreement through Resolution  adopted by the City’s Council on . Attachment 2 to Report FIN 02-25 4917-2707-8657, v. 6 NOW THEREFORE for good and valuable consideration (the receipt and sufficiency of which is acknowledged by all parties), the parties hereby agree as follows: Interpretation 1.The parties confirm that the above Recitals are true and correct in fact and substance. 2.Capitalized terms used in this Amending Agreement, but not defined herein, shall have the meaning ascribed to them in the Original Agreement. 3.The captions and headings contained herein are for reference only and in no way affect this Amending Agreement or its interpretation. Amendments 4.The term of employment of the City’s Project Manager as set out in Section 2.1(c) of the Original Agreement is extended by an additional period of twenty-four (24) months from the date of this Amending Agreement, and the Original Agreement shall be construed accordingly. 5.Section 1.1(b) of the Original Agreement is hereby deleted and replaced with the following: 1.1(b) “Additional Costs” means any amount of the Actual Costs that exceeds the Estimated Costs by more than the contingency amount set out in Schedule “C”. 6.Section 2.1(f) of the Original Agreement is hereby deleted and replaced with the following: 2.1(f) The City will use reasonable efforts to seek future contributions to the Costs from Non-Participating Benefitting Owners in accordance with the policies of the Official Plan of the City; 7.Section 4.2 of the Original Agreement is hereby deleted and replaced with the following: 4.2 Termination – This Agreement shall terminate upon such time as all Actual Costs have been paid or mutually agreed to by the City and the Trustee, provided that a minimum of 60 days notice is provided. Notwithstanding the foregoing, in the event that the North East Pickering Area is initially included in an urban area expansion pursuant to the Regional Official Plan and such urban area designation is subsequently revoked or nullified by an Approval Authority, the Trustee may terminate this Agreement, provided that a minimum of 30 days notice is provided. For the purposes of the foregoing, “Approval Authority” shall mean the City, the Regional Municipality of Durham, or any other governmental authority, body, agency, department, whether federal, provincial, or municipal, having jurisdiction over a matter dealt with in this Agreement. 8.The Trustee’s contact particulars as set out in the Original Agreement are hereby deleted and replaced with the following: North East Pickering Landowners Group Inc. c/o Loopstra Nixon LLP 4917-2707-8657, v. 6 130 Adelaide Street West. Suite 2800 Toronto, ON M5H 3P5 Attention: Daniel Steinberg Email: dsteinberg@LN.Law 9. Section 6.2 of the Original Agreement is hereby deleted and replaced with the following: 3.3 Method of notice – Any notice shall be conclusively deemed to have been given to and received by the party to which it is addressed (a) if personally delivered, on the date of delivery; or (b) if by email or facsimile, on the day transmission delivery is confirmed by the party receiving the notice, provided that if delivery occurs after 5:00 p.m., Eastern Standard time, on a Business Day or at any time which is not a Business Day, delivery shall be conclusively deemed to have been given on the next Business Day. 10. Schedules “A, B, C, and D” of the Original Agreement are hereby deleted and replaced with updated Schedules “A, B, C, and D” as attached to this Amending Agreement. General Provisions 11. This Amending Agreement may be executed in one or more counterparts and execution of this Amending Agreement may be evidenced by way of signature by electronic mail or facsimile. Signed copies of this Amending Agreement shall be forwarded to the Trustee who shall hold them in escrow until the Trustee has received copies signed by all parties hereto. Upon such receipt, a binding agreement shall be constituted among all the parties hereto (the Trustee shall advise all parties accordingly) and the provisions herein shall prevail in the event of any inconsistency with the provisions of the Original Agreement prior to this amendment. 12. This Amending Agreement shall enure to the benefit of and shall be binding upon the parties and their respective heirs, successors and permitted assigns. 13. This Amendment shall amend the Original Agreement and shall be read together with the Original Agreement and construed as one and the same document. All other provisions of the Original Agreement remain in full force and effect, unamended as of the date hereof. [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY] 4917-2707-8657, v. 6 IN WITNESS WHEREOF the parties hereto duly executed this Amending Agreement as of the date written above. THE CORPORATION OF THE CITY OF PICKERING Per:________________________________ Name: Title: Per:________________________________ Name: Title: I/We have authority to bind the Corporation. 4917-2707-8657, v. 6 NORTH EAST PICKERING LANDOWNERS GROUP INC. Per:________________________________ Name: Title: Per:________________________________ Name: Title: I/We have authority to bind the Corporation. 4917-2707-8657, v. 6 Schedule “A” List of Owners [see attached] North East Pickering Landowners Group Inc. – Legal Entities Entities Parcel # Common Name Dorsay (Pickering) Limited 1 Dorsay Development Corp. Dorsay (Pickering) Limited 2 Dorsay Development Corp. Dorsay (Pickering) Limited 3 Dorsay Development Corp. Dorsay (Pickering) Limited 5 Dorsay Development Corp. Dorsay (Pickering) Limited 11 Dorsay Development Corp. Dorsay (Pickering) Limited 15 Dorsay Development Corp. Dorsay (Pickering) Limited 17 Dorsay Development Corp. Dorsay (Pickering) Limited 18 Dorsay Development Corp. Dorsay (Pickering) Limited 21 Dorsay Development Corp. Dorsay (Pickering) Limited 22 Dorsay Development Corp. Dorsay (Pickering) Limited 25 Dorsay Development Corp. Canelli Heights Development Inc. 6 Armland Group Canelli Heights Development Inc. 7 Armland Group Canelli Heights Development Inc. 10 Armland Group Canelli Heights Development Inc. 12 Armland Group Gladesbrook Pine Estates Corp. 20 Armland Group Malvasia Builders Inc. 8 Armland Group Malvasia Builders Inc. 9 Armland Group Malvasia Builders Inc. 30 Armland Group Trinipark Development (BT) Corp 14 Armland Group Trinipark Development (BT) Corp 27 Armland Group Frazione Home Corp. 26 Armland Group Le Prata Homes Inc. 31 Armland Group Cougs (Lakeridge) Ltd. 19 Coughlan Homes Stonelake Developments Inc. 23 Tribute Communities Stonelake Developments Inc. 24 Tribute Communities Pinebrown Salem Lands Ltd. 16 Pinebrown Salem Lands Ltd. Crown Hill Golf Club Inc. 28 Crown Hill Golf Club Inc. Crown Hill Golf Club Inc. 29 Crown Hill Golf Club Inc. FP Pickering Developments Limited 4 Fieldgate Developments TFP Golf Acquisitions Limited 13 Fieldgate Developments 4917-2707-8657, v. 6 Schedule “B” Plan Depicting North East Pickering Area [see attached] P ICKE R I N G W H IT BY 27 28 29 30 31 8TH CON RD 7 T H C O N R D SALEM RD SIDELINE 6 SID E LIN E 4 SI DE L IN E 2 WE S TN E Y R D SIDELINE 8 SIDELINE 4 HW Y 7 LAK E RIDGE R D WES TNEY RD LAKE RIDGE RD KINS ALE R D 6TH CON RD £¤407 3 2 24 1 15 5 6 13 4 23 10 25 17 21 19 18 20 7 9 8 16 26 22 11 14 12 Sources: Google Earth Imagery, October 2022Contains information licensed under the Open GovernmentLicence – Ontario North-East Pickering Municipal Boundary Greenbelt Plan - Protected Country Hamlet Non-Developable Area Hwy 407 Right-of-Way 30m Hydro Corridor Natural Heritage System Participating Landowners Armland Group Brown Group Coughlan Homes Crown Hill Dorsay TFP Tribute 0 250 500125 metres Ü PARTICIPATING LANDOWNERSNORTH-EAST PICKERING MGP File: 20-2918Date: April 9, 2024 GREENWOOD KINSALE PARTICIPATING LANDOWNERSDEVELOPABLE AREA Notes:1. Developable area excludes:- Greenbelt Plan (outside North-East Pickering)- Highway 407 Right-of-Way- 30m Hydro Corridor- Natural Heritage System as per GeoProcess Research, June 2022GREENWOOD Map I D Part icipat ing Landowner Gross Area(ha)Devel opable Area (ha) 6 37.2 31.276.2 6.286.1 6.0296.1 5.81036.3 28.4 12 0.8 0.8144.0 3.92012.1 12.1266.9 6.8274.1 4.0305.6 5.63117.7 17.716Brown Group 8.4 6.62828.0 16.9291.2 0.519Coughlin Homes 18.1 16.8150.2 38.9268.9 49.93104.2 90.3538.4 37.4114.0 3.31582.2 67.41727.2 17.91813.1 8.82119.1 11.4224.8 3.22536.3 27.5426.7 9.41362.4 54.32369.6 14.424118.7 58.1Total Part icipat ing Landowners 924.8 661.7 875.6 587.2 25.3 25.3Total Nort h-East Pickering 1825.8 1274.2 Dorsay Tribut e Hamlet s Non-Part icipat ing Landow ners TFP Crown Hill Armland Group 4917-2707-8657, v. 6 Schedule “C” Updated Approved Budget [see attached] Salary Benefits / Other (10%)Contingency (10%) Total Year - #1 $115,000.00 $11,500.00 $11,500.00 $138,000.00 Year - #2 $118,801.00 $11,880.10 $11,880.10 $142,561.20 Year - #3 $122,000.00 $12,200.00 $12,200.00 $146,400.00 Year - #4 $125,660.00 $12,566.00 $12,566.00 $150,792.00 Year - #5 $129,430.00 $12,943.00 $12,943.00 $155,316.00 Total $610,891.00 $61,089.10 $61,089.10 $733,069.20 North East Pickering Landowners Group Inc. - Approved Budget Schedule C 4917-2707-8657, v. 6 Schedule “D” Estimated Fees and Expenses [see attached] Technology Disbursements Total Year - #1 $4,000.00 $1,500.00 $5,500.00 Year - #2 X $1,500.00 $1,500.00 Year - #3 X $1,500.00 $1,500.00 Year - #4 X $1,500.00 $1,500.00 Year - #5 X $1,500.00 $1,500.00 Total $4,000.00 $7,500.00 $11,500.00 North East Pickering Landowners Group Inc. - Estimated Fees and Expenses Schedule D