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Home My WebLink AboutCS 31-05PICKERING REPORT TO EXECUTIVE COMMITTEE Report Number: CS 31-05 Date: May 3, 2005 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Development Charges Reserve Fund - Statement of the Treasurer for 2004 Recommendation: That Report CS 31-05 of the Director, Corporate Services & Treasurer respecting the Development Charges Reserve Fund be received and forwarded to Council for information. Executive Summary: Not applicable Financial Implications: statement. There are no financial implications to the receipt of this Background: Section 43 of the Development Charges Act requires that the Treasurer furnish to Council a Statement in respect of each Reserve Fund (i.e. for each Development Charge) established under Section 33 of the Act. Accordingly, the attached Schedules 1 to 5 details the activity in the Development Charges Reserve Fund for the year ended December 31, 2004 in the manner as prescribed by the Development Charges Act. Funds are not transferred out of the 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 expense is incurred. Attachment 1 presents the total Reserve Fund balance, before unspent commitments of $19,496,777. Taking into account the unspent commitments at December 31, 2004 of $2,672,169 the uncommitted fund balance available for future expenditures is $16,824,608. The development charges collected in 2004 were $3,709,465 an increase of 30% from amounts collected in 2003. The increase in building activities was due in part to the economic condition of Iow interest rates and the booming building industry. Report CS 31-05 Subject: Development Charges Reserve Fund-Statement of the Treasurer for 2004 Date: May 3, 2005 Page 2 The 2004 budgeted funding from this Reserve Fund was $1,293,025 as detailed on Attachment 2. The capital and current expenditures actually incurred in 2004 that were funded from this Reserve Fund amounted to $778,446. These expenditures pertained to capital projects and studies approved in 2001 to 2004. Attachment 3 provides a summary by projects of these capital expenditures funded by development charges and other sources as prescribed by O. Reg. 82/98 Section 12(3). In 2004, the City undertook additional internal loans of $267,000 from this Reserve Fund, bringing the combined 2001 to 2004 outstanding internal loans at $5,756,900 as of December 31, 2004. Attachment 4 provides detailed information on the 2004 internal borrowings and the purpose for which it was borrowed as prescribed by O. Reg. 82/98 Section 12(2)3. Interest and principal repayments on 2004 internal loans will commence in 2005. Please note that the principal and interest of $1,160,726 paid in 2004 and as indicated in Attachment 5 are related to 2001 to 2003 internal loans. This amount was funded from the general tax levy. Schedule 5 also provides a summary of amount and source of any money used by the municipality to repay money borrowed from the fund and interest on such money as required by O. Reg. 82/98 Section 12(2)4,5. Though the fund balance has increased significantly due to increase in building activities, caution has to be used when budgeting for draws for capital projects as this trend may not continue in the future due to the limited availability of land in Pickering and the uncertainty of economic times ahead of us. Attachments: 2004 Annual Statement of Development Charges Reserve Fund Projects Approved in 2004 Capital Budget Funded from Development Charges Reserve Fund 2004 Actual Capital Expenditures Summarized by Projects 2004 Internal Loans from Development Charges Reserve Fund New Loans Undertaken During the Year Total Development Charges Reserve Fund Total Internal Loans - Annual Repayment for the Year Ended December 31,2004 Report CS 31-05 Subject: Development Charges Reserve Fund-Statement of the Treasurer for 2004 Date: May 3, 2005 Page 3 Prepared By: Caryn Kong Senior Financial Analyst GP:ck Attachments Copy: Chief Administrative Officer Approved / Endorsed By: Gillis A. Paterson Director, Corporate Services & Treasurer Recommended for the consideration of Pickering Cit~ Council Thdm~s J. OuCn, Chef Admin~"~ati. t~ Off1'cer cO 0 0 O4 °si° Source of Funding Dev. Charges D.C-City's Total Reserve Fund Share Reserve Projects: External Subdivision (Road Construction) Rosebank Rd. Bridge 04-001-02 Clements Road-east Church 04-001-22 Church St-Bayly to Clements 04-001-23 External Subdivision ( Sidewalks ) Kingston Rd-Steeple Hill to Whites Brock Rd-Bayly to 401 $300,000 $900,000 $1,200,000 65,560 65,560 131,120 598,785 598,785 1,197,570 $964,345 $1,564,345 2,528,690 04-002-03 58,500 58,400 116,900 04-002-07 25,250 25,250 50,500 External Subdivision ( Traffic Signals ) Pickering Pkwy @ Valley Farm Rd. 04-003~02 Brock Rd @ Clements 04-003-03 External Subdivision ( Storm Water Management ) Storm Water Mgmt Works 04-004-00 83,750 83,650 167,400 56,250 66,250 122,500 56,250 26,250 82,500 112,500 92,500 205,000 132,430 23,370 155,800 132,430 23,370 155,800 Total $1,293,025 $1,763,865 $3,056,890 ATTACHMEN'~ ~,.._~ ...... TO REPORT #_C...,? 3/-,) s' Corporate Services 2003 & 2004 budgeted project Development Charges Background Study Total Corporate Services External Subdivision 2003 and prior budgeted projects Road Construction: Southview Drive-reconstruction ES 1996 06B Squires Beach Rd-Bayly to 750 m south 03-001-15 Traffic Signal: Twyn Rivers Dr @ Woodview Av. ES 2000 RO-4 Sidewalks & Streetlights: North side of Finch/Altona to Rosebank 03-002-16 Total Ext. Subdivision Works-2003 & prior 2004 budgeted projects Road Construction: Rosebank Rd Bridge 04-001~02 Traffic Signal: Pickering Pkwy @ Valley Farm Rd 04-003-02 Total Ext. Subdivision Works- 2004 Total Spent Dev. Charges Com. Facilities D.C-City's Share Internal Reserve Fund Reserve Fund Reserve Loans Total $ 78,673 $ 78,673 $ 78,673 - $ 78,673 $ 21,420 6,197 $ 27,617 338,006 338,006 56,250 18,000 74,250 7,800 4,069 11,869 $ 423,476 $ 6,197 $ 4,069 $ 18,000 $ 451,742 230,047 230,047 56,250 40,050 96,300 $ 286,297 $ - $ 40,050 $ $ 326,347 $ 788,446 $ 6,197 $ 44,119 $ 18,000 $ 856,762 Budget Amount Year Project Number Terms Description of Loans Parks 2003 03-2718-001-01 10-Year David Farr Park 100,ooo.00 5.09% 2004 04-2718-001-00 10-Year Progress Frenchman's Bay Park 75,000.00 5.09% Roads 2004 04-2320-001-02 5-Year 3/4 Ton Pick-Up Truck 35,0o0.00 5.00% Res. 103/04 OES 22-04 2004 04-2320-004-02 5-Year Replacement Culvert Steamer 25,000.00 5.00% High Pressure Hot Water Streetli,qht 2004 04-2325-007-01 lO-Year Traffic Control Project 32,ooo,o0 5.09% Twin Rivers/Woodview Total Internal Loans for 2004 267,000.00 ATTACHMENT ~ TO REPORT #~.3/' Development Charges Booked in 2001 Rosebank Eastshore Community Ctr Fire Tanker Dispatch Ctr 1999 Roads Projects 1999 Streetlights 2000 Roads Projects Specialized Transit Aerial Truck Waterfront Trail Western Branch Outstanding Principal Outstanding Principal Repayment Principal Interest (Jan 1) 2004 2004 2004 Jan. 1,2004 Dec. 31,2004 $ $ $ $ 680,897 (81,615) 599,282 590,868 (70,824) 520,044 120,292 (14,419) 105,873 132,397 (15,870) 116,527 707,378 (84,789) 622,589 431,991 (51,780) 380,211 630,207 (75,539) 554,668 36,648 (36,648) 302,621 (36,273) 266,348 97,331 (58,074) 39,257 1,069,765 (128,226) 941,539 4,800,395 (654,057) 4,146,338 (39,492) (34,270) (6,977) (7,679) (41,028) (25,056) (36,552) (17,552) (21,413) (62,046) (292,065) Booked in 2002 Fire Hall & Communication Parks Sidewalks Storm Water Management Streetlight Arena & Recreation Roads 35,265 (8,145) 27,120 143,130 (12,558) 130,572 72,026 (6,320) 65,706 147,747 (12,964) 134,783 36,937 (3,241) 33,696 50,788 (4,456) 46,332 639,928 (56,151) 583,777 1,125,821 (103,835) 1,021,986 (1,869) (8,302) (4,178) (8,569) (2,142) (2,946) (37,116) (65,122) Booked in 2003 Roads Library Rec. Complex-Core 100,476 (7,914) 92,562 241,071 (18,988) 222,083 7,524 (593) 6,931 349,071 (27,495) 321,576 (5,225) (12,536) (391) (18,152) Booked in 2004 Parks 175,000 175,000 Roads 60,000 60,000 Streetlights 32,000 32,000 267,000 267,000 Total Source of Funding 6,542,287 (785,387) 5,756,900 Gen. Tax Levy (375,339) Gen. Tax Levy Annual Charges (Principal & Interest) (1,160,726)