HomeMy WebLinkAboutFIN 08-20DICKERING
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Report to
Executive Committee
Report Number: FIN 08-20
Date: June 15, 2020
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Annual Indexing — Development Charges and Seaton Financial Impacts
Agreement
Recommendation:
1. That Report FIN 08-20 of the Director, Finance & Treasurer be received;
2. That effective July 1, 2020 as provided for in By-law No. 7595/17, as amended by
By-law No. 7727/19, the Development Charges (the "DCs") referred to in
Schedule "C" of that By-law be increased by 2.9 percent;
3. That effective July 1, 2020 as provided for in By-law No. 7595/17, as amended by
By-law No. 7727/19, the DCs referred to in Schedule "D" of that By-law be
increased by 2.9 percent;
4. That effective July 1, 2020 the payments related to "10 percent Soft Services" as
provided for by the Seaton Financial Impacts Agreement (FIA) dated November
26, 2015 be increased by 2.9 percent; and
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 No. 7595/17, as amended by By-law No. 7727/19 provide for an
automatic annual adjustment to the City's development charges based on the Building
Construction Price Index in order to keep development charges revenues current with
construction costs. The Building Construction Price Index for the non-residential
buildings construction for the annual period ending March 31, 2020 is 2.9 percent.
Adoption of Recommendations 2 and 4 of this report will put into effect the higher rate
for the period of July 1, 2020 to June 30, 2021. Adoption of Recommendation 3 for the
residential apartments dwelling units for the defined area as amended by By-law No.
7727/19 will put into effect the higher rate for the period of July 1, 2020 to December 14,
2020.
FIN 08-20 June 15, 2020
Subject: Annual Indexing and Development Charges for Page 2
City -Wide and Seaton Lands
Attachment 1 provides the DCs by service category for the City-wide area in Pickering
excluding the Seaton lands with the new rates reflecting the annual indexing of 2.9
percent.
Attachment 2 provides the DCs by service category for the Seaton lands, and the new
rates with the indexing of 2.9 percent as well as additional charges applicable to
development in Seaton as approved in the Seaton Financial Impacts Agreement (FIA).
Attachment 5 provides the DCs by service category for the residential apartments
dwelling units for the area defined in Schedule "E" of By-law No. 7727/19 for the
remaining period of July 1 to Dec. 14, 2020.
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 construction costs.
The table below provides a comparison of residential development charges for Durham
Lakeshore municipalities.
Comparison of Durham Lakeshore Municipalities
Residential Development Charge Fee
Single Detached Dwelling
Ajax $26,277
Oshawa 24,629
Whitby 23,868
Clarington 18,148
Pickering (New) 16,994
As the above table indicates, after applying Pickering's proposed rate increase, the City
still has the lowest DC rate among its Durham Lakeshore neighbours.
Discussion: As provided for in Ontario Reg. 82/98, s.7, and in section 16 of the
City's By-law No. 7595/17, as amended by By-law No. 7727/19, the development
charges charged by the City for all types of development shall be indexed annually
without amending the by-laws. Adoption of the recommendations contained in this
report will allow that increase to take effect July 1, 2020, thereby assisting in keeping
revenues in line with the costs that development charges fund.
Statistics Canada indicates that the non-residential buildings construction price index
(an indicator of our costs of construction) for the Toronto area has increased by 2.9
percent for the annual period from April 1, 2019 to March 31, 2020. The change is
reflected in the tables attached.
FIN 08-20 June 15, 2020
Subject: Annual Indexing and Development Charges for Page 3
City -Wide and Seaton Lands
The 2017 DC Background Study was completed in December 2017, and further
updated by the 2019 DC Update Study. DC By-law No. 7595/17, section 16(1)(ii)
provides that commencing on July 1, 2019, the rates in Schedule "C" shall be adjusted
annually in accordance with the change in the index for the most recently available
annual period ending March 31. Schedule "C" is applicable to the new DCs rates
effective on January 1, 2018 as a result of the 2017 DC Background Study, and as
amended by the 2019 DC Update Study, effective Dec. 17, 2019. Attachment 4
provides the change in rates in Schedule "C" from Dec. 17, 2019 to July 1, 2020 based
on the 2.9 percent indexing.
The same by-law, under section 16(1) (iii) provides that the rates in Schedule "D" shall
be adjusted on July 1, 2018, July 1, 2019 and July 1, 2020 in accordance with the
change in index for the most recently available annual period ending March 31.
Schedule "D", as amended by DC By-law No. 7727/19; effective December 17, 2019 is
applicable to residential apartments dwelling units for the area defined in Schedule "E"
of this same by-law . Attachment 5 provides the change in rates in Schedule "D" from
Dec. 17, 2019 to July 1, 2020 based on the 2.9 percent indexing. The implementation of
new DCs rates for the defined area of the residential apartment dwellings units was
delayed to accommodate the long-term planning and construction cycle associated with
the development. Note that DC By-law 7727/19 has amended By-law 7595/17,
Schedule "D" to the effective period of January 1, 2018 to December 14, 2020.
Continuing from previous years, City staff are including in the DCs annual indexing
report, additional charges applicable to development in Seaton lands as approved in the
Seaton FIA. Sections 4 - 6 of the FIA outline the DC -related financial terms of the
agreement. Note that of all the 3 services collectible based on the Seaton FIA, the "10%
Soft Services" is the only service to be indexed. Attachment 3 provides further details on
these charges with the 2.9 percent indexing.
The Seaton DC rates are lower than the City-wide DC rates 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) - Effective July 1, 2020
2. Seaton Lands Development Charges and Financial Impacts Agreement (FIA)
Charges -Effective July 1, 2020
3. Seaton Lands — Financial Impacts Agreement (FIA) Charges, Section 5.1
4. Schedule "C" — City of Pickering Schedule of Development Charges
FIN 08-20 June 15, 2020
Subject: Annual Indexing and Development Charges for Page 4
City -Wide and Seaton Lands
5. Schedule "D" --- City of Pickering Schedule of Development Charges for
Residential Apartments Dwelling Units for the Area defined in Schedule "E" of By-
law No. 7727/19
6. Residential Development Charges for the Greater Toronto Area Municipalities as
of February 18, 2020
Prepared By:
Caryn Kong, CPA, CGA
Senior Financial Analyst — Capital &
Debt Management
Approved/Endorsed By:
2
Stan Karwowski, CPA, CMA, MBA
Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Tony Prevedel, P.Eng.
Chief Administrative Officer
Attachment #1 to Report # FIN 08-20
City of Pickering
City -Wide Development Charges (Excludes Seaton Lands)
Development Charges By-law No. 7595/17, as amended by By-law No. 7797/19
Effective July 1, 2020 to June 30, 2021
1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
Per Residential Dwelling Unit By Type
Non -Residential Charges
Service Category
Singles or Semi-
Detached
Apt Dwellings
with 2 or more
bdrms
Apt Dwellings
with less than
2 bdrms
Other
Dwellings
Non -Residential per
Sq. Ft of Total Floor
Area
Other Services Related to a
Highway
Protection Services
Parks and Recreation Services
Library Services
Administration Studies
Stormwater Management
Transportation 1
$483
983
6,638
1,100
315
316
7,159
$307
621
4,192
695
200
201
4,523
$216
439
2,971
493
141
142
3,203
$391
795
5,358
889
253
255
5,780
$0.17
0.36
0.53
0.07
0.12
0.11
2.02
Total
$16,994
$10,739
$7,605
$13,721
$3.38
1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
Attachment #2 to Report # FIN 08-20
City of Pickering
Seaton Lands Development Charges and Financial Impacts Agreement (FIA) Charges
Development Charges (DC) By-law No. 7595/17, as amended by By-law No. 7727/19 and FIA Article 5
Effective July 1, 2020 to June 30, 2021
DC By-law No. 7595/17, as amended by By-
law No. 7727/19
Per Residential Dwelling Unit By Type
Non -Residential Charges
Apt
Dwellings
Apt Dwellings
Non -Residential per
Prestige Employment
Singles or Semi-
with 2 or
with less than
Other
Sq. Ft of Total Floor
Land in Seaton (per
Service Category
Detached
more bdrms
2 bdrms
Dwellings
Area 5
Net Hectare)
Other Services Related to a Highway
$483
$307
$216
$391
$0.17
$5,983
Protection Services
983
621
439
795
0.36
12,647
Parks and Recreation Services
6,638
4,192
2,971
5,358
0.53
17,602
Library Services
1,100
695
493
889
0.07
2,631
Administration Studies
315
200
141
253
0.12
4,035
Stormwater Management
316
201
142
255
0.11
3,846
Transportation 1
0
0
0
0
0.00
0
Total DC By-law No.7595/17 (as
amended)
$9,835
$6,216
$4,402
$7,941
$1.36
$46,744
Per Sq. Ft of Total
SLG FIA
Floor Area
10% Soft Services 2
$870
$397
$397
$689
$0.101
$0.101
Non Indexed
Municipal Buildings 3
189
86
86
150
n/a
n/a
Community Uses 4
300
137
137
238
n/a
n/a
Total SLG FIA
$1,359
$620
$620
$1,077
$0.101
$0.101
$46,744/ha &
Total Charges -Seaton Lands
$11,194
$6,836
$5,022
$9,018
$1.461
$0.101/sq. ft
1 Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
2 Breakdown by service category is available upon request. Not applicable to lands owned by the Province. For residential development,
payment is due at subdivision registration except for mixed-use or multi -use or multi -residential development blocks subject to site plan approval.
For all other development, payment is due prior to building permit issuance. Subject to annual indexing.
3 Applicable to the first 11,280 S.D.Es built on SPL Lands, due prior to building permit issuance. No indexing
4 Applicable to the first 11,280 S.D.Es built on SPL Lands to a maximun payment of $3.3 million; due prior to building permit issuance. No indexing
5 Does not apply to prestige employment land in Seaton, as that development is subject to the per net Ha land area charge instead. Applies
to non-residential development in the non -prestige employment land in Seaton.
Attachment #3 to Report # FIN 08-20
City of Pickering
Seaton Lands - Financial Impacts Agreement (FIA) Charges, Section 5.1
Section 5.1: 10% Soft Services Contribution*
Effective July 1, 2020 to June 30, 2021
* This contribution is to be indexed with the construction price index prescribed by the DC Act.
FIA version (October 28, 2013) subsection 5.1 and 5.2 permits the City to charge an additional DC to compensate for the
10% soft services deduction.
The calculation is based on the DC rate multiplied by 11.11°/0 as stated in the FIA agreement subsection 5.2.
1
19.0% of the DC Recoverable share for the Development Related Studies is comprised of costs that are subject to the 10% deduction.
Per Residential Dwelling Unit By Type **
Non -Residential Charges
Apt
Prestige
Dwellings
Non -Residential
Employment Land
Singles or Semi-
with 2 or Apt Dwellings with
Other
per Sq. Ft of
in Seaton (per Sq.
Service Category
Detached
more bdrms less than 2 bdrms
Dwellings
Total Floor Area
Ft)
Development -Related Studies 1
$4.64
$2.11
$2.11
$3.67
0.002
0.002
Parks Development & Trails
220.59
100.81
100.81
174.94
0.019
0.019
Indoor Recreation Facilities
460.19
209.73
209.73
364.02
0.038
0.038
Library
110.49
50.49
50.49
87.62
0.009
0.009
Operations Facilities & Vehicles
74.09
33.86
33.86
58.75
0.033
0.033
Total
$870.00
$397.00
$397.00
$689.00
0.101
0.101
* This contribution is to be indexed with the construction price index prescribed by the DC Act.
FIA version (October 28, 2013) subsection 5.1 and 5.2 permits the City to charge an additional DC to compensate for the
10% soft services deduction.
The calculation is based on the DC rate multiplied by 11.11°/0 as stated in the FIA agreement subsection 5.2.
1
19.0% of the DC Recoverable share for the Development Related Studies is comprised of costs that are subject to the 10% deduction.
Attachment #4 to Report # FIN 08-20
Schedule "C"
City of Pickering Schedule of Developement Charges -DC By-law No. 7595/17, as amended by By-law No. 7727/19
Effective December 17, 2019
Effective July 1, 2020 Indexed at 2.9%
Per Residential Dwelling Unit By Type
$175
Non -Residential Charges
$224
$0.04
$1,317
Apt
Non-
Prestige
Apt
Dwellings
$479
Residential
Employment
$387
Singles or
Dwellings
with less
per Sq. Ft of
Land in
Semi-
with 2 or
than 2
Other
Total Floor
Seaton (per
Service Category
Detached
more bdrms
bdrms
Dwellings
Area
Net Hectare)
Other Services Related to a Highwe
$470
$298
$210
$380
$0.16
$5,814
Protection Services
955
604
427
772
0.35
12,291
Parks and Recreation Services
6,451
4,074
2,887
5,207
0.51
17,106
Library Services
1,069
676
479
864
0.07
2,557
Administration Studies
306
194
137
246
0.12
3,921
Stormwater Management
307
195
138
248
0.11
3,738
Total Municipal Wide Services
$9,558
$6,041
$4,278
$7,717
$1.32
$45,427
Outside of Seaton Lands:
Transportation 1
6,957
4,395
3,113
5,617
1.96
0
Total Services Outside of
Seaton Lands
$6,957
$4,395
$3,113
$5,617
$1.96
$0
Seaton
$9,558
$6,041
$4,278
$7,717
$1.32
$45,427
Rest of Pickering -City wide
$16,515
$10,436
$7,391
$13,334
$3.28
Effective July 1, 2020 Indexed at 2.9%
$ Increase - Seaton Lands
Per Residential Dwelling Unit By Type
$175
Non -Residential Charges
$224
$0.04
$1,317
Apt
Non-
Prestige
Apt
Dwellings
$479
Residential
Employment
$387
Singles or
Dwellings
with less
per Sq. Ft of
Land in
Semi-
with 2 or
than 2
Other
Total Floor
Seaton (per
Service Category
Detached
more bdrms
bdrms
Dwellings
Area
Net Hectare)
Other Services Related to a Highwe
$483
$307
$216
$391
$0.17
$5,983
Protection Services
983
621
439
795
0.36
12,647
Parks and Recreation Services
6,638
4,192
2,971
5,358
0.53
17,602
Library Services
1,100
695
493
889
0.07
2,631
Administration Studies
315
200
141
253
0.12
4,035
Stormwater Management
316
201
142
255
0.11
3,846
Total Municipal Wide Services
$9,835
$6,216
$4,402
$7,941
$1.36
$46,744
Outside of Seaton Lands:
Transportation 1
7,159
4,523
3,203
5,780
2.02
0
Total Services Outside of
Seaton Lands
$7,159
$4,523
$3,203
$5,780
$2.02
0
Seaton Lands
$9,835
$6,216
$4,402
$7,941
$1.36
$46,744
Rest of Pickering -City wide
$16,994
$10,739
$7,605
$13,721
$3.38
$ Increase - Seaton Lands
$277
$175
$124
$224
$0.04
$1,317
$ Increase - Rest of Pickering -
City wide
$479
$303
$214
$387
$0.10
N/A
Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
Schedule "D"
City of Pickering
Schedule of Development Charges for Residential
Apartments Dwelling Units for the Area defined in
Schedule "E" of By-law No. 7727/19
Effective Dec. 17, 2019
Attachment #5 to Report # FIN 08-20
DC By-law No. 7595/17,
as amended by By-law
No. 7727/19
Effective July 1,2020 Indexed at 2.9%
Effective July 1 - Dec. 14, 2020
RESI DENTIAL
RESI DENTIAL
Apt Dwellings with 2 Apt Dwellings with
Apt Dwellings with 2 Apt Dwellings with
Service Category
less than 2 bdrms
or more bdrms
less than 2 bdrms
Other Services Related to a Highway
Protection Services
$242
$177
Protection Services
2,735
487
357
Parks and Recreation Services
450
2,658
1,950
Library Services
Stormwater Management
595
437
Administration Studies
$4,417
153
112
Stormwater Management
158
117
Total Municipal Wide Services
Total Services Outside of Seaton Lands
$4,293
$3,150
Outside of Seaton Lands:
$8,091
$5,938
Transportation 1
$ Increase - Rest of Pickering -City wide $228
3,570
2,621
809
$3,570
$2,621
Rest of Pickering -City wide
$7,863
$5,771
Effective July 1,2020 Indexed at 2.9%
Effective July 1 - Dec. 14, 2020
'• Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
RESI DENTIAL
Apt Dwellings with 2 Apt Dwellings with
Service Category
or more bdrms
less than 2 bdrms
Other Services Related to a Highway
$249
$182
Protection Services
501
367
Parks and Recreation Services
2,735
2,007
Library Services
612
450
Administration Studies
157
115
Stormwater Management
163
120
Total Municipal Wide Services
$4,417
$3,241
Outside of Seaton Lands:
Transportation 1
3,674
2,697
Total Services Outside of Seaton Lands
$3,674
$2,697
Rest of Pickering -City wide
$8,091
$5,938
$ Increase - Rest of Pickering -City wide $228
$167
'• Does not apply to Seaton Lands. Seaton Lands subject to a separate agreement outside of the Development Charges Act concerning
provision of the Transportation requirements in addition to other funding contributions.
Attachment #6 to Report # FIN08-20
$140,000
$120,000
$100,000
$80,000
d
$60,000
$40,000
$20,000
Residential Development Charges
Per Single Detached Dwelling for Greater Toronto Area Municipalities
as of February 18, 2020
■ Upper Tier ®Lower/SingleTer EE&ucation
i
1
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��cV Hca a,�c�44.6 4,cP tip� stp(e 00. a�pY ,CP �\g� � s� g\,?P ON CP 0- ae{° f`C+F� e �,oc`�' y`0m� '�4 �e �$ot` �`ae> \a6e `6gl 5�' �' Py `cp1
�a r GA'
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0% egg<
ot.
BB= Built Boundary & GF -Greenfield.
1. A component of the charge has been converted from a per hectare charge to a hypothetical single detached unit
2. Upper tier charges reflect proposed 2020 charges,