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HomeMy WebLinkAboutCS 43-05PICKERING REPORT TO EXECUTIVE COMMITTEE Report Number: CS 43-05 Date: May 17, 2005 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Development Charges - Annual Indexing Recommendation: It is recommended that Report CS 43-05 of the Director, Corporate Services & Treasurer be received and that: effective July 1, 2005, as provided for in Section 16 of By-law 6349/04, the Development Charges referred to in Sections 6 and 11 of that by-law be increased by 6.4 percent being the annual increase in the Construction Price Statistics as reported by Statistics Canada for the year ended March 31, 2005; and, 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 1,2005 to June 30, 2006 increases that are provided for in the Development Charges Act 1997 and Ontario Regulation 82/98 and By-law 6349/04 and are needed to finance construction costs under the City's Development Charge Background Study adopted by Council in July 2004. This is an annual adjustment needed to keep revenues current with costs. Financial Implications: Increasing the Development Charges by 6.4 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 $521, other residential charges will increase similarly and the commercial/industrial charge will increase by approximately $0.14 per square foot or $1.51 per square metre. Report CS 43-05 Subject: Development Charges- Annual Indexing Date: May 17, 2004 Page 2 Background: As provided for in the Ontario Reg. 82/98 and in the City's By-law 6349/04, 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, 2005 thereby assisting in keeping our revenues in line with the costs that development charges go towards. Statistics Canada indicates the increase in the Construction Price Statistics for the most recently available annual period ending March 31, 2005 of 6.4 percent for non- residential construction price 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 CS 21-04 to Council in the form of contribution to the Development Charges - City's Share should also increase by 6.4 percent. The 2005 Budget contained $590,000 of contribution for this purpose, however in the same year, the budgetted draw of $2,027,840 reduced the year-end balance significantly to $483,492. Significant contributions in 2006 and after are necessary in order to bring the fund balance to an acceptable level. The Commercial/Industrial Development Charge remains at the Council approved level of approximately 50 percent of the justified cost recovery amount, meaning the City has to contribute to the balance. At this juncture, the Region of Durham has not finalized the annual indexing of the development charges the City collects on their behalf. The City will continue to use rates prescribed as effective from July 1, 2004 until further notice from the Region. The Education Development Charges will remain unchanged for the current year. The main changes are to update the amounts to reflect recommendations contained in this report. Upon receiving the final figures from the Region for the portion of the development charges the City collects on their behalf in mid June, the brochure will be revised and distributed. The brochure will be posted on the City's website and made available at various counters throughout the Civic Complex. Attachments: 1. Current and Proposed Residential Development Charges 2005/2006 Report CS 43-05 Subject: Development Charges- Annual Indexing Date: May 17, 2004 Page 3 Prepared By: Approved / Endorsed By: Caryn Kong Senior Financial Analyst Gillis A. Paterson Director, Corporate Services & Treasurer GAP:vw Attachment Copy: Chief Administrative Officer Chief Building Official Recommended for the consideration of Pickering City Council Thor4d'a~'J; (~ui¢~4', Chie(~dminist~~ ,~TTA6HHENT# ~ ...TO REPORT#~ CITY OF PICKERING CURRENT RESIDENTIAL DEVELOPMENT CHARGES Effective January 1, 2005 PER DWELLING UNIT Service Single & Apt. Two Other Category Semi Apt. One Bdrm Bdrm Dwelling Detached ($) & Smaller ($) & Larger ($) Units ($) Growth Studies 107 40 61 87 Fire Protection 336 126 191 273 Transportation 4,147 1,544 2,355 3,368 Parks & Rec 3,071 1,144 1,745 2,495 Library 489 182 278 396 TOTAL $8,150 $3,036 $4,630 $6,619 Non-Residential - $2.21 per sq. foot or $23.79 per sq. metre PROPOSED RESIDENTIAL DEVELOPMENT CHARGES Effective July 1, 2005 PER DWELLING UNIT Service Single & Apt. Two Other Category Semi Apt. One Bdrm Bdrm Dwelling Detached ($) & Smaller ($) & Larger ($) Units Growth Studies 114 43 65 93 Fire Protection 358 134 203 290 Transportation 4,412 1,642 2,506 3,584 Parks & Rec 3,267 1,217 1,857 2,654 Library 520 194 295 421 TOTAL $8,671 3,230 $4,926 $7,042 Non-Residential - $2.35 per sq. foot or $25.30 per sq. metre $ Increase: Residential 521 194 296 423 Non- $0.14 per sq. $1.51 per sq. Residential foot metre