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Home My WebLink AboutCS 24-03 Citq o~ REPORT TO FINANCE & OPERATIONS COMMITTEE Report Number: CS 24-03 Date: June 5, 2003 From: Gil Paterson Director, Corporate Services & Treasurer Subject: Development Charges Reserve Fund- Statement of the Treasurer for 2002 Recommendation: That Report CS 24-03 as the Statement of the Director, Corporate Services & Treasurer respecting the Development Charges Reserve Fund (G/L 4227 and 4229) be received by Council for information. Executive Summary: Not applicable Financial Implications: statement. There are no financial implications to the receipt of this Background: Section 43 of the Development Charges Act requires that the Treasurer furnish to Council a Statement in respect of each Reserve Fund established under Section 33 (i.e. for each Development Charge). Accordingly, the attached Schedules 1 to 5 details the activity in the Development Charges Reserve Fund for the year ended December 31, 2002 in the manner as prescribed by the Development Charges Act. We are continuing the practice of not transferring monies out of reserve fund for projects still underway until the funds are actually required. This practice will ensure, that the Reserve Fund continues to earn interest income on these unspent monies until such time that the actual expense is incurred. Schedule 1 presents the Reserve Fund balance, before unspent commitments of $12,866,750. Taking into account the unspent commitments at December 31, 2002 of $1,675,789 the uncommitted fund balance available for future expenditures is $11,190,961. Report CS 24-03 Date: June 5, 2003 Subject: Development Charges Reserve Fund-Statement of the Treasurer for 2002 Page 2 The development charges collected in 2002 were $2,340,781 an increase of 74% from amounts collected in 2001. The increase in building activities was due in part to the economic condition of low interest rates and the booming housing market. The 2002 budgeted draw from this Reserve Fund was $731,460. . Schedule 2 provides a detailed breakdown of 2002 budgeted capital projects. The capital expenditures incurred in 2002 that were actually funded from this Reserve Fund amounted to $398,836. Schedule 3 provides a summary by projects of these capital expenditures funded by development charges and other sources as prescribed by Regulation 12(3). In 2002, the City undertook additional internal loans of $1,224,000 from this Reserve Fund, bringing the combined 2001 and 2002 internal loans at $7,431,893 as of Dec. 31,2002. Schedule 4 provides detailed information on the 2002 internal borrowings and the purpose for which it was borrowed as prescribed by Regulation 12 (2). Interest and principal repayment on 2002 internal loans will commence in 2003. Please note that the annual charges of $904,719 paid in 2002 and as indicated in Schedule 5 are related to 2001 internal loans. This amount was funded from the general tax levy. Schedule 5 also provides a summary of amount and source of any money used by the municipality to repay money borrowed from the fund and interest on such money as required by Reg. 12 (2) 5. Though the fund balance has increased significantly due to increase in building activities, caution has to be used when budgeting for draws for capital projects as this trend may not continue in the future due to the limited availability of land in Pickering and the uncertainty of economic times ahead of us. Attachments: 1. 2. 2002 Annual Statement of Development Charges Reserve Fund Projects Approved in 2002 to be Funded from Development Charges Reserve Fund 2002 Capital Expenditures Summarized by Project 2002 Internal Loans from Development Charges Reserve Fund Total Dev. Charges Reserve Fund Internal Loans & Annual Repayment 3. 4. 5. Report CS 24-03 Date: June 5, 2003 Subject: Development Charges Reserve Fund-Statement of the Treasurer for 2002 Page 3 Prepared By: Approved 1 Endorsed By: -e~~ Caryn Kong, Senior Financial Analyst ---: ~ C>-- -- '-GTilis A. Paterson, Director, Corporate Services & Treasurer GP:vw Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council ", J CITY OF PICKERING Schedule 1 Sec 43 Open. Balance as at Jan. 1, 2002 671,627 314,545 99,936 218,830 746,035 2,117,541 314,988 85,522 127,566 1,131,771 83,208 1,689,544 733,147 1,884,853 24,414 120,855 29,233 10,393,615 REVENUE Dev. Charges Collected 0 33,269 19,617 32,426 0 1,002,911 146,634 37,448 66,757 17,353 72,061 0 368,630 409,428 14,612 65,147 54,488 2,340,781 Interest Received- External Investments 8,191 4,512 1,620 3,331 9,098 45,035 6,630 1,736 2,885 14,093 2,656 20,605 17,651 31,460 602 2,820 1,725 174,650 Interest Received-Internal Loan 24,788 11,217 3,462 7,700 27,534 64,297 9,564 2,597 3,873 41,457 2,527 62,354 24,815 64,996 741 3,730 888 356,540 32,979 48,998 24,699 43,457 36.632 1,112.243 162,828 41,781 73,515 72,903 77,244 82,959 411,096 505,884 15,955 71,697 57,101 2,871,971 Sub-total 704,606 363,543 124,635 262,287 782,667 3,229,784 477,816 127,303 201,081 1,204,674 160,452 1,772,503 1,144,243 2,390,737 40,369 192,552 86,334 13,265,586 EXPENDITURES Capital Expenditures 0 (13,796) 0 0 (49,802) 0 0 0 0 0 0 0 (335,238) 0 0 0 0 (398,836) Total Expenditures 0 (13,796) 0 0 (49,802) 0 0 0 0 0 0 0 (335,238) 0 0 0 0 (398,836) Bal. before commitments Dec. 31, O. 704,606 349,747 124,635 262,287 732,865 3,229,784 477,816 127,303 201,081 1,204,674 160,452 1,772,503 809,005 2,390,737 40,369 192,552 86,334 12,866,750 Commitments Unpaid Dec, 31,2002 0 (51,204) 0 0 (649,683) (497,660) (182,197) (56,250) (103,900) (92,000) (7,813) 0 (55,082) 0 0 0 0 (1,675,789) Uncommitted Balance, Oec.31,2002 704,606 298,543 124,635 262,287 83,182 2,732,J24 315,619 71,053 97,181 1,112,674 152,639 1,772,503 753,923 2,390,737 40,369 192,552 86~34 11,190 . No longer collectable (1) Under new By-law, this category now collected under 4 new sub-categories, which are Roads, Sidewalk & Streetlights, StOfT11 Water Management Dev, Charges Apportionment-2002.XLS Combined RTC :þ' ~ ~ n :I: ~ m Z -I f d ;;:0 m ." 0 ~ ~ & ATTACHMENT#~ TO REPORT # c5 ~~ ~{):1 Source of Funding Dev. Charge D.C-City's General Total Reserve Fund Portion Fund Projects: $ $ $ $ Planning Development Studies 25,000 0 0 25,000 External Subdivision (Storm Water Management) Storm Water Management 116,800 48,200 0 165,000 External Subdivision ( Roads) Valley Farm Rd. East Side-N Esplanade 64,350 0 0 64,350 Engineer, design & estimates for new road 0 0 0 (North of Dunbarton-east of Fairport) 0 30,000 0 30,000 Rosebank Rd. Bridge-Granite CrtlToynevale 230,800 494,800 0 725,600 Strouds Lane Extention to Altona Rd 147,510 0 0 147,510 Strouds Extension Culvert (oversizing) 55,000 0 0 55,000 Pickering Pkwy-Glenanna to HEPC Corridor 0 36,960 0 36,960 Sub-total External Subdivision 497,660 561,760 0 1,059,420 Total Ext. Subdivision 614,460 609,960 0 1,224,420 Roads Vehicles- 4 Ton Dump Truck (new) 92,000 56,000 5,580 153,580 Grand Total 731,460 665,960 5,580 1,403,000 DC Reserve Fund 2002.xls Projects 05/06/2003 ATTACI-;\¡ 4,.3._- "10 REPORT # &.id. Ý ~ ð 3 Dev. Charges Com. Facilities Internal Reserve Fund Reserve Fund Gen. Fund Loans Total Corporate Services 2000 budqeted project Master Financing Plan 13,796 13,796 External Subdivision 2001 and prior budqeted projects Road Construction Rosebank Rd Bridge Analysis ES 1996 01 B 7,000 3,000 300 10,300 Rosebank Bridge-GranitefToynevale 01-001-0' 11 ,504 291 11,795 Carey Agreement-Golden Ridge 01-001-06 15,215 34,766 49,981 Squires Beach Rd (Bayly to 750m S) 01-001-1: 1,417 1,417 Sidewalk & Streetlight Kingston Road (partial) ES 2000 WO-2 14,666 14,666 Parks 1998 budqeted project Front Street Park 22,456 22,456 2000 budqeted project Petticoat Creek Bridge 312,782 145,770 231,000 689,552 Total Spent 398,836 3,000 181,127 231,000 813,963 Capital Exp.-2002 Reg 12(3).xls Total Projects TTACHMENT#-!:t- TO REPORT#~¥-O3 Original Principal Loan Repayment Interest Total Development Charges -4227 Old By-Law Purpose of Loan: Fire Hall & Communication $43,000 $0 $0 $0 Parks 155,000 Sidewalks 78,000 Storm Water Management 160,000 Streetlight 40,000 Arena & Recreation 55,000 Sub-total 4227 $531,000 $0 $0 $0 Development Charges -4229 New By-Law Purpose of Loan: Roads $693,000 $0 $0 $0 Sub-total 4229 $693,000 $0 $0 $0 Total $1,224,000 $0 $0 $0 Note: Annual repayment for 2002 Internal Loans to commence in 2003. Capital Exp.-2002 Reg 12(3).xls DC Loan '~'mTO REPORT # CS '~Y-o.3 Outstanding Principal Outstanding Principal Repayment Principal Interest (Jan 1) 2002 2002 2002 Jan 1 ,2002 Dec 31,2002 Development Charges - 4227 Booked in 2001 Rosebank 831,025 (72,987) 758,038 47,663 Eastshore Community Ctr 721,145 (63,336) 657,809 41,361 Fire Tanker 130,391 3,529 133,920 9,232 Dispatch Ctr 161,588 (14,191) 147,397 9,343 1999 Roads Projects 207,756 (18,246) 189,510 11,916 1999 Roads Projects 655,527 (57,519) 598,008 38,021 1999 Streetlights 527,239 (46,306) 480,933 30,486 2000 Roads Projects 353,647 (31,060) 322,587 20,283 2000 Roads Projects 415,512 (36,494) 379,018 22,684 4,003,830 (336,610) 3,667,220 230,989 Booked in 2002 Fire Hall & Communication 43,000 43,000 Parks 155,000 155,000 Sidewalks 78,000 78,000 Storm Water Management 160,000 160,000 Streetlight 40,000 40,000 Arena & Recreation 55,000 55,000 531,000 531,000 Sub-total 4227 4,534,830 (336,610) 4,198,220 230,989 Development Charges - 4229 Booked in 2001 Specialized Transit 78,486 (24,886) 53,600 3,257 Aerial Truck 369,344 (32,438) 336,906 21,356 Waterfront Trail 450,600 (39,574) 411,026 26,054 Western Branch 1,305,633 (114,671) 1,190,962 74,884 2,204,063 (211,569) 1,992,494 125,551 Booked in 2002 Roads 693,000 693,000 Sub-total 4229 2,897,063 (211,569) 2,685,494 125,551 Grand Total 7,431,893 (548,179) 6,883,714 356,540 . . Source of Funding Gen. Tax Levy Gen. Tax Levy Annual Charges (Principal & Interest) 904,719 resfndintioans02.xls 02/06/2003