HomeMy WebLinkAboutCS 43-05PICKERING
REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 43-05
Date: May 17, 2005
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: Development Charges - Annual Indexing
Recommendation:
It is recommended that Report CS 43-05 of the Director, Corporate Services &
Treasurer be received and that:
effective July 1, 2005, as provided for in Section 16 of By-law 6349/04, the
Development Charges referred to in Sections 6 and 11 of that by-law be
increased by 6.4 percent being the annual increase in the Construction Price
Statistics as reported by Statistics Canada for the year ended March 31, 2005;
and,
the appropriate officials of the City of Pickering be given authority to give effect
thereto.
Executive Summary: Adoption of the recommendations of this report will put into
effect for the period July 1,2005 to June 30, 2006 increases that are provided for in the
Development Charges Act 1997 and Ontario Regulation 82/98 and By-law 6349/04 and
are needed to finance construction costs under the City's Development Charge
Background Study adopted by Council in July 2004. This is an annual adjustment
needed to keep revenues current with costs.
Financial Implications: Increasing the Development Charges by 6.4 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 $521, other residential charges will increase similarly and the
commercial/industrial charge will increase by approximately $0.14 per square foot or
$1.51 per square metre.
Report CS 43-05
Subject: Development Charges- Annual Indexing
Date:
May 17, 2004
Page 2
Background: As provided for in the Ontario Reg. 82/98 and in the City's By-law
6349/04, 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,
2005 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, 2005 of 6.4 percent for non-
residential construction price 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 CS 21-04
to Council in the form of contribution to the Development Charges - City's Share should
also increase by 6.4 percent. The 2005 Budget contained $590,000 of contribution for
this purpose, however in the same year, the budgetted draw of $2,027,840 reduced the
year-end balance significantly to $483,492. Significant contributions in 2006 and after
are necessary in order to bring the fund balance to an acceptable level. The
Commercial/Industrial Development Charge remains at the Council approved level of
approximately 50 percent of the justified cost recovery amount, meaning the City has to
contribute to the balance.
At this juncture, the Region of Durham has not finalized the annual indexing of the
development charges the City collects on their behalf. The City will continue to use
rates prescribed as effective from July 1, 2004 until further notice from the Region.
The Education Development Charges will remain unchanged for the current year.
The main changes are to update the amounts to reflect recommendations contained in
this report. Upon receiving the final figures from the Region for the portion of the
development charges the City collects on their behalf in mid June, the brochure will be
revised and distributed. The brochure will be posted on the City's website and made
available at various counters throughout the Civic Complex.
Attachments:
1. Current and Proposed Residential Development Charges 2005/2006
Report CS 43-05
Subject: Development Charges- Annual Indexing
Date:
May 17, 2004
Page 3
Prepared By:
Approved / Endorsed By:
Caryn Kong
Senior Financial Analyst
Gillis A. Paterson
Director, Corporate Services & Treasurer
GAP:vw
Attachment
Copy: Chief Administrative Officer
Chief Building Official
Recommended for the consideration of
Pickering City Council
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,~TTA6HHENT# ~ ...TO REPORT#~
CITY OF PICKERING
CURRENT RESIDENTIAL DEVELOPMENT CHARGES
Effective January 1, 2005
PER DWELLING UNIT
Service Single & Apt. Two Other
Category Semi Apt. One Bdrm Bdrm Dwelling
Detached ($) & Smaller ($) & Larger ($) Units ($)
Growth Studies 107 40 61 87
Fire Protection 336 126 191 273
Transportation 4,147 1,544 2,355 3,368
Parks & Rec 3,071 1,144 1,745 2,495
Library 489 182 278 396
TOTAL $8,150 $3,036 $4,630 $6,619
Non-Residential - $2.21 per sq. foot or $23.79 per sq. metre
PROPOSED RESIDENTIAL DEVELOPMENT CHARGES
Effective July 1, 2005
PER DWELLING UNIT
Service Single & Apt. Two Other
Category Semi Apt. One Bdrm Bdrm Dwelling
Detached ($) & Smaller ($) & Larger ($) Units
Growth Studies 114 43 65 93
Fire Protection 358 134 203 290
Transportation 4,412 1,642 2,506 3,584
Parks & Rec 3,267 1,217 1,857 2,654
Library 520 194 295 421
TOTAL $8,671 3,230 $4,926 $7,042
Non-Residential - $2.35 per sq. foot or $25.30 per sq. metre
$ Increase:
Residential 521 194 296 423
Non- $0.14 per sq. $1.51 per sq.
Residential foot metre