HomeMy WebLinkAboutCS 25-03
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REPORT TO FINANCE &
OPERATIONS COMMITTEE
Report Number: CS 25-03
Date: June 9, 2003
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
Development Charges - Annual Indexing
Recommendation:
1.
It is recommended that Report CS 25-03 of the Director, Corporate Services &
Treasurer be received and that:
2.
effective July 1, 2003, as provided for in Section 16 of By-Law 5546/99, the
Development Charges referred to in Sections 6 and 11 of that by-law be
increased by 3.1 percent being the annual increase in the Construction Price
Statistics as reported by Statistics Canada for the year ended March 31, 2003;
and,
3.
the ,appropriate officials of the City of Pickering be given authority to give effect
thereto.
Executive Summary: Adoption of the recommendations of this report will put into
effect for the period July 2003 to June 2004 increases that are provided for in the
Provincial Legislation and By Law 5546/99 and are needed to finance construction costs
under the City's Development Charge Study adopted by Council in August 1999. This is
an annual adjustment needed to keep revenues current with costs.
Financial Implications: Increasing the Development Charges by 3.1 percent will
assist in keeping the revenues generated thereunder in line with current costs. The
residential development charges for single and semi detached units will increase by
approximately $224, other residential charges will increase similarly and the
commercial/industrial charge will increase by approximately $0.39 per square metre.
Background: As provided for in the Provincial Legislation and in the City's By Law
5546/99, each year the development charges charged by the City for all types of
development may be increased without amending the by-law. Adoption of the
recommendations contained in this report will allow that increase to take effect July 1,
2003 thereby assisting in keeping our revenues in line with the costs that development
charges go towards.
Report CS 25-03
Date: June 9, 2003
Subject: Development Charges- Annual Indexing
Page 2
Statistics Canada indicates the increase in the Construction Price Statistics for the most
recently available annual period ending March 31, 2003 of 3.1 percent for non-
residential construction cost index (an indicator of our costs of construction) for the
Toronto area. The change is reflected in the table attached.
The City's obligations under Recommendations contained in the same report FIN 22-99
to Council in the form of contribution to the Development Charges-City's Share should
also increase by 3.1 percent or approximately $85,000 annually to $ 2,745,000. T he
2003 Budget contained $1,000,000 for this purpose. The Commercial/Industrial
Development Charge remains at the Council approved level of approximately 50
percent of the justified cost recovery amount, meaning the City has to contribute to the
balance.
At this juncture, the Region of Durham has not finalized the annual indexing of the
development charges the City collects on their behalf. The City will continue to use
rates prescribed as effective from July 1, 2002 until further notice from the Region.
The Education Development Charges will remain unchanged for the current year.
The main changes are to update the amounts to reflect recommendations contained in
this report. Upon receiving the final figures from the Region for the portion of the
development charges the City collects on their behalf in mid August, the brochure will
again be revised and distributed. The brochure will be posted on the City's website and
made available at various counters throughout the Civic Complex.
Attachments:
1.
Current and Proposed Residential Development Charges 2003/2004
Prepared By:
~
Caryn Kong
Senior Financial Analyst
Approved I Endorsed By:
~~~~ J ~-
Gillis A. Paterson,
Director,Corporate Services & Treasurer
GAP:vw
Attachment
Copy: Chief Administrative Officer
Chief Buildin Official
Recommended for the consideration of
Pickering City Co cil
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ATTACHMENT#...L. TO REPORT#~'o3
CITY OF PICKERING
CURRENT RESIDENTIAL DEVELOPMENT CHARGES
Effective July 1,2002
PER DWELLING UNIT
Service Single & Apt. Two Other
Category Semi Apt. One Bdrm Bdrm Dwelling
Detached ($) & Smaller ($) & Larger ($) Units ($)
Growth Studies 113 48 62 92
Fire Protection 176 75 96 145
Transportation 3,629 1,510 2,017 2,973
Transit 244 101 135 201
Parks & Rec 2,685 1,118 1 ,494 2,200
Library 406 169 225 332
TOTAL 7,253 3,021 4,029 5,943
Non-Residential- $12.65 per sq. metre
PROPOSED RESIDENTIAL DEVELOPMENT CHARGES
Effective July 1,2003
PER DWELLING UNIT
Service Single & Apt. Two Other
Category Semi Apt. One Bdrm Bdrm Dwelling
Detached ($) & Smaller ($) & Larger ($) Units
Growth Studies 116 49 64 95
Fire Protection 181 77 99 150
Transportation 3,741 1,557 2,079 3,065
Transit 252 104 139 207
Parks & Rec 2,768 1,153 1,540 2,268
Library 419 174 232 342
TOTAL 7,4 77 3,114 4,153 6,127
Non-Residential - $13.04 per sq. metre
$ Increase:
Residential 224 93 124 184
Non- $0.39
Residential