HomeMy WebLinkAboutCST 24-11
Czry Report To
Executive Committee
I `KERIN Report Number: CST 24-11
161 Date: June 13, 2011
From: Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: Development Charges Reserve Fund - Statement of the Treasurer for
2010
Recommendation:
That Report CST 24-11 of the Director, Corporate Services & Treasurer respecting the
Development Charges Reserve Fund be received for information.
Executive Summary: Section 43 of the Development Charges Act, 1997 (Act)
requires-that the Treasurer furnish Council with a statement in respect of each Reserve
Fund established for each Development Charge under Section 33 of the Act.
Accordingly, the enclosed Attachments 1 to 5 detail the activity in each component of
the Development Charges Reserve Fund for the year ended December 31, 2010 in the
manner as prescribed by the Act. As required under Section 43(3) of the Act, the
Treasurer will be forwarding a copy of this same statement to the Minister of Municipal
Affairs and Housing within 60 days upon furnishing the statement to Council.
Financial Implications: In summary, development charge revenues increased by
approximately 50 percent to $1,653,053 over 2009 due to an increase in building permit.
activity. However, receipts still remain low compared to the early to mid 2000's.
The Reserve Fund remains at a healthy balance of approximately $29.6 million pending
inclusion of the projects for which the funds were collected being proposed in future
capital budgets. The funds are well managed with investment returns consistently
exceeding market indicators. Investment income becomes part of each fund.
Sustainability Implications: The availability of funding from Development Charges
Reserve Funds assists in sustaining infrastructure related to growth.
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Report CST 24-11 Date: June 13, 2011
Subject: Development Charges Reserve Fund - Statement Page 2
of the Treasurer for 2010 162-
Background: Funds are not transferred out of the Development Charges Reserve
Fund for projects until the funds are actually needed, as required under accounting
rules, which ensures that the Reserve Fund continues to earn interest income on these
unspent monies until such time that the actual expenses are incurred. Attachment 1
presents the total Reserve Fund balance under "Fund Balance - Prior to Budget
Commitments" of $29,593,895. Taking into account the "Budget Commitments" as at
December 31, 2010 of $5,748,608, the "Fund Balance - After Budget Commitments"
available for future expenditures is $23,845,287.
The development charges collected in 2010 were $1,653,063, an increase of 50% from
amounts collected in 2009 ($1,104,861). This significant increase is largely due to the
development of a 133 unit retirement home at the corner of Glengrove and Kingston
Road. The City's share of the development charges collected for the development of
the retirement units was approximately $527,000. The remaining development charges
collected in 2010 in the approximate amount of $1.1 million is consistent with amounts
collected in 2009. This consistency is a reflection of economic times experienced in the
last few years and limited land available in Pickering for development. Attachment 2
provides a chart showing the 10 year historical pattern of the development charges
collected, notably the sharp decline starting from 2005 and continuing in 2010. The
cumulative total collected for this 10-year period was $22,584,885.
The 2010 project funding, based on the 2009 Development Charges Background Study
from this Reserve Fund was $1,939,893. Attachment 3 provides detailed information
on these approved projects.
The capital and current expenditures actually incurred in 2010 that were funded from
this Reserve Fund amounted to $494,087 (see Attachment 4). These expenditures
pertained to capital and current projects approved in 1996 to 2010. Attachment 4
provides a summary by projects of these expenditures funded by development charges
and other sources as prescribed by Ontario Regulation (O.Reg.) 82/98 Section 12(3).
Attachment 5 provides detailed information on repayments pertaining to internal loans
undertaken from 2001 to 2009 as required by O.Reg. 82/98 Section 12(2)3,4,5. As of
December 31, 2010, the total outstanding internal loans are $1,123,472. No internal
loan was undertaken in 2010. The principal and interest paid in 2010 was $1,201,884
and was funded from the general tax levy.
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Report CST 24-11 Date: June 13, 2011
Subject: Development Charges Reserve Fund - Statement Page 3
163 of the Treasurer for 2010
Attachments:
1. 2010 Annual Statement of Development Charges Reserve Fund
-2. Development Charges Collected 2000 - 2010
3. Projects Approved in 2010 to be Funded from Development Charges Reserve
Fund
4. 2010 Actual Capital and Current Expenditures Summarized by Projects
5. Development Charges Reserve Fund Internal Loans - Annual Repayment for the
Year Ended December 31, 2010
Prepared By: Approved / Endorsed By:
Caryn Kong, CGA Gillis A. Paterson, CMA
Senior Financial Analyst -Capital & Director, Corporate Services & Treasurer
Debt Management
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City ouncil
2' Zola
Tony Prevedel, P. Eng.
Chief Administrative Officer
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D.C-City's
Dev. Charges Share Debt-DC
Source of Funding GL Account Res Fund Reserve Funded Other Total
Capital Budget
External Subdivision ( Roads)
DH-3 Tillings Road - Valley Farm Road to north limit.
Oversizing from local road to collector and urbanization.
Work be completed in conjunction with servicing SP
2008-08 Lebovic and SP 2005-04 Cougs 5321.1001 $565,200 $62,800 $0 $0 $628,000
DH-7 North (East/West) Collector (West side of Brock
Road) Tillings to 250m east. Oversizing from local road
to collector and urbanization/forest edge treatment.
Work to be completed in conjunction with SP 2008-08
Lebovic and SP 2005-04 Cougs 5321.1002 141,300 15,700 0 157,000
DH-8 North (East/West) Collector (West side of Brock
Road) Brock Road to 150m west. Oversizing from local
road to collector and urbanization/forest edge treatment 5321.1003 84,780 9,420 0 94,200
TC-25 Town Centre West - Street A-1. Oversizing local
road to collector. Work to be completed in conjunction
with adjacent site plan including additional road portion.
(Council Resolution Nov. 9/09) 5321.1004 95,513 258,527 354,040
Total-Ext Subdivision (Roads) $886,793 $346,447 $0 $0 $1,233,240
External Subdivision (Traffic Signals)
TC-24 Pickering Parkway - East of Liverpool Rd. Traffic
signalization and intersection realignment in conjunction
with expansion to Pickering Town Centre. 5321.1006 667,500 222,500 890,000
Total-Ext Subdivision (Traffic Signals) $667,500 $222,500 $0 $0 $890,000
External Subdivision (Storm Water))
W-6 (Partial) Amberlea-Creek Erosion Control EA,
Design, Approvals and Construction (south of Bayly
Street) - erosion control of valley wall (Two year project) 5321.1005 327,600 0 2,402,400 2,730,000
327,600 0 2,402,400 0 2,730,000
Total-Capital Budget $1,881,893 $568,947 $2,402,400 $0 $4,853,240
Operation Centre-Revised based on DC Study*
Municipal Class Environmental Assessment for a New
Operations Centre 5315.0904. $34,435 $65,565 a $100,000
Current Budget
DC Study-Appeal 2126.2392 $10,000 $10,000
Planning-City's Official Plan Review 2611.2392. 48,000 52,000 b 100,000
Total-Current Budget $58,000 $52,000 $110,000
Grand Total-Capital & Current Budget $1,939,893 $568,947 $2,402,400 $52,000 $4,963,240
Notes
a Provincial Grant-Investing in Ontario
b Property Taxes
Revised financing based on 2009 DC Background Study. CST14-11 Recommendation 5
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ATTACHMENT # r TO REPORT #-af :2
169
Development Charges Reserve Fund Internal Loans - O. Reg. 82/98
Annual Repayment for the Year Ended December 31, 2010 S 12(2)3,4,5
Outstanding • Principal Outstanding
Principal Repayment Principal Interest
Internal Loans Jan. 1, 2010 2010 Dec. 31, 2010 2010
Undertaken in 2001
Rosebank Road 108,777 (108,777) (3,372)
Eastshore Community Ctr 94,393 . (94,393) (2,926)
Fire Tanker 19,216 (19,216) (596)
1999 Roads Projects 113,009 (113,009) -
2000 Roads Projects 100,676 (100,676) - (3,121)
Aerial Truck 48,346 (48,346) - (1,499)
Library-Western Branch 170,900 (170,900) - (5,298)
655,317 (655,317) - (16,812)
Undertaken in 2002
Parks 34,926 (11,200) 23,726 (1,362)
Sidewalks 27,242 (8,736) 18,506 (1,062)
Storm Water Management 34,555 (11,081) 23,474 (1,348)
Arena & Recreation 19,209 (6,160) 13,049 (749)
Roads 242,031 (101,647) 140,384 (9,439)
357,963 (138,824) 219,139 (13,960)
Undertaken in 2003
Roads 45,511 (10,686) 34,825 (1,912)
Rec.Complex-Core 3,408 (800) 2,608 (143)
48,919 (11,486) 37,433 (2,055)
Undertaken in 2004
Parks 96,811 (17,742) 79,069 (4,231)
96,811 (17,742) 79,069 (4,231)
Undertaken in 2005
Roads 10,713 (10,713) - (332)
Library 36,850 (36,850) - (1,142)
Parks 13,925 (13,925) (432)
61,488 (61,488) (1,906)
Undertaken in 2006
Protective Services (Fire) 12,161. (12,161) (377)
Protctive Services (Bylaw) 21,148 (21,148) (656)
Transportation-Roads 7,931 (7,931) - (246)
Parks 32,515 (32,515) - (1,008)
Recreation Facilities 30,993 (15,230) 15,763 (1,085)
104,748 (88,985) 15,763 (3,371)
Undertaken in 2007
Gen Govt (Civic Complex) 29,716 (4,424) 25,292 (1,337)
Protective Services (Fire) 93,620 (31,752) 61,868 (3,651)
Parks 150,861 (29,055) 121,806 (7,352)
Rec Facilities (Arena & Cmmty Ctr) 144,766 (39,941) 104,825 (6,672)
418,963 (105,172) 313,791 (19,012)
Undertaken in 2009
Fire(Tools & Equipment for Vehicle) 500,000 (41,723) 458,277 (19,800)
500,000 (41,723) 458,277 (19,800)
Total 2,244,209 (1,120,737) 1,123,472 (81,147)
Source of Funding Gen. Tax Levy
Annual Charges (Principal & Interest) (1,201,884)