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Home My WebLink AboutCS 13-02 n51 Ciú¡ o~ REPO R T TO CO UN ClL - FROM: Gillis A. Paterson Director, Corporate Services & Treasurer DATE: May 28,2002 REPORT NUMBER: CS 13-02 SUBJECT: Development Charges RECOMMENDATION: It is recommended that Report CS 13-02 of the Director, Corporate Services & Treasurer be received and that: 1. effective July 1, 2002, 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 1,9 percent being the annual increase in the Construction Price Statistics as reported by Statistics Canada for the year ended March 31,2002; and, 2. the appropriate officials ofthe City of Pickering be given authority to give êffect thereto, - ORIGIN: Report FIN 22-99 of the Director of Finance & Treasurer AUTHORITY: Report FIN 22-99 of the Director of Corporate Services and Treasurer and Resolution # 16 9/99, Clause 6, ofthe Council of the City of Pickering, By Law 5546/99 Development Charges Act, 1997, as amended, and Regulations thereunder, FINANCIAL IMPLICATIONS: - Increasing the Development Charges by 1.9 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 $135, other residential charges will increase similarly and the commercial/industrial charge will increase by approximately $0,24 per square metre, Report to Council CS 15-02 n52 Date: May 28, 2002 Subject: Development Charges Page 2 EXECUTIVE SUMMARY: - Adoption of the recommendations of this report will put into effect for the period July 2002 to June 2003 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. 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, 2002 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, 2002 of 1.9 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 1.9 percent or approximately $50,000 annually to $2,660,000. The 2002 Budget contained $800,000 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, - The Council of the Region of Durham recently approved the s~me change to the development charge the City collects on their behalf. A TT ACHMENTS: 1. Residential Development Charges 2002/2003 Prepared By: Approved / Endorsed By: ~~ Caryn Kong Senior Financial Analyst -- ~~='----- Gillis A, Paterson, Director, Corporate Services & Treasurer GP:vw Attachments - Recommended for the consideration of Pickering , City Council f)5:i CITY OF PICKERING RESIDENTIAL DEVELOPMENT CHARGES Effective July 1, 2002 PER DWELLING UNIT Service Single & Apt. One Bdrm Apt. Two Bdrm Other - Category Semi Detached & Smaller & Larger Dwelling 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 .- RESIDENTIAL DEVELOPMENT CHARGES Effective July 1, 2001 PER DWELLING UNIT Service Single & Apt. One Bdrm Apt. Two Bdrm Other Category Semi Detached & Smaller & Larger Dwelling Units Growth Studies 111 47 61 90 Fire Protection 173 73 95 142 Transportation 3,561 1,483 1,979 2,918 Transit 239 99 133 197 Parks & Rec 2,636 1,097 1,465 2,159 Library 398 166 221 326 TOTAL 7118 2,965 3,954 5,832 .- Non-Residential- $12.41 per sq. metre Dollar Increase: Residential 135 56 75 111 Non-Residential $0.24 050 - - - RECOMMENDATION OF THE COMMITTEE OF THE WHOLE DATE MOVED BY SECONDED BY That Report CS 13-02 of the Director, Corporate Services & Treasurer, regarding Development Charges be received; and 1. That effective July 1, 2002, 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 1,9 percent being the annual increase in the Construction Price Statistics as reported by Statistics Canada for the year ended March 31, 2002; and 2, That the appropriate officials of the City of Pickering be given authority to give effect thereto.