HomeMy WebLinkAboutFIN 12-17 cy,yo Report to
PICKER 1 N G Executive Committee
Report Number: FIN 12-17
Date: June 5, 2017
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Annual Indexing and Development Charges for City-Wide and Seaton
Lands
Recommendation:
1. That Report FIN 12-17 of the Director, Finance & Treasurer be received;
2. That effective July 1, 2017 as provided for in By-law 7324/13, the Development
Charges (the "DCs") referred to in Schedule "C" of that By-law be increased by
3.9 percent;
3. That the DCs that are specific for the Seaton Lands and the additional
contributions as specified in Articles 4 through 6 of the Seaton Financial Impacts
Agreement dated November 26, 2015 be approved;
4. That effective July 1, 2017 the payments related to "10% Soft Services" as
provided for by the Seaton Financial Impacts Agreement dated November 26,
2015 be increased by 3.9 percent; and
5. That the appropriate City of Pickering officials be authorized to take the
necessary actions as indicated in this report.
Executive Summary: The Development Charges Act 1997 and Ontario Regulation
82/98, and By-law 7324/13 provide for an automatic annual adjustment to the City's
development charges based on the Non-residential Building Construction Price Index in
order to keep development charges revenues current with construction costs. The Non-
residential Building Construction Price Index for the current indexing year is 3.9%.
Adoption of the recommendations of this report will put into effect the higher rate for the
period of July 1 to December 31, 2017. It is anticipated that the current DC By-law will
be repealed on January 1, 2018 due to the fact that the City would have completed its
2017 DC Background Study.
Attachment 1 provides the DCs by service category for the City-wide area in Pickering
excluding the Seaton Lands, and the new rates with the 3.9% indexing.
FIN 12-17 June 5, 2017
Subject: Annual Indexing and Development Charges for Page 2
City-Wide and Seaton Lands
Attachment 2 provides the DCs by service category for the Seaton Lands, and the new
rates with the 3.9% indexing as well as additional charges applicable to development in
Seaton as approved in the Seaton Financial Impacts Agreement (FIA).
Financial Implications: Increasing the development charges based on an increase
in the construction price index will assist in keeping the revenues generated in line with
current costs.
Discussion: As provided for in Ontario Reg. 82/98, s.7, and in section 16 of the
City's By-law 7324/13, the development charges charged by the City for all types of
development may be indexed annually without amending the By-law. Adoption of the
recommendations contained in this report will allow that increase to take effect July 1,
2017 thereby assisting in keeping revenues in line with the costs that development
charges fund.
Statistics Canada indicates that the Non-residential Building Construction Price Index
(an indicator of our costs of construction) for the Toronto area has increased by 3.9%
from March 31, 2016 to March 31, 2017. The change is reflected in the tables attached.
Continuing from previous years, City staff are including in the DC annual indexing report
a Seaton DC section based on the Seaton FIA. Sections 4 - 6 of the FIA outline the
DC-related financial terms of the agreement. Note that of all the three services
collectible based on the Seaton FIA, the "10% Soft Services" is the only service to be
indexed. Attachment 3 provides the further details on these charges with the 3.9%
indexing.
The Seaton DC rate is lower than the City-wide DC rate to reflect the fact that the
Seaton Landowner Group (SLG) is responsible to design, build and pay for the Seaton
internal roads network.
Upon Council's approval of the recommendations contained in this report, the
development charges brochure will be updated to reflect the approved rates. The
updated brochure will be posted on the City's website and made available at various
counters throughout the Civic Complex.
Attachments:
1. City-Wide Development Charges (excludes Seaton Lands)
2. Seaton Lands Development Charges and Financial Impacts Agreement (FIA)
Charges
3. Seaton Lands - Financial Impacts Agreement (FIA) Charges, Section 5.1
FIN 12-17 June 5, 2017
Subject: Annual Indexing and Development Charges for Page 3
City-Wide and Seaton Lands
Prepared By: Approved/Endorsed By:
Caryn Kong, CPA, CGA Stan Karwowski, CPA, CMA, MBA
Senior Financial Analyst— Capital & Director, Finance & Treasurer
Debt Management
Recommended for the consideration
of Pickering Ci Council
r
Tony Prevedel, P.Eng.
Chief Administrative Officer
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