HomeMy WebLinkAboutCS 29-06
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REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 29~06
Date: May 23,2006
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
Development Charges - Annual Indexing
Recommendation:
1. It is recommended that Report CS 29-06 of the Director, Corporate Services &
Treasurer be received and:
2. That effective July 1, 2006 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 6.2 percent being the annual increase in the Construction Price
Statistics for the Non-Residential Building Construction Price Index as reported
by Statistics Canada for the year ended March 31,2006; and,
3. That 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, 2006 to June 30, 2007 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 6.2 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 $536, other residential charges will increase similarly and the
commercial/industrial charge will increase by approximately $0.15 per square foot or
$1.57 per square metre.
073
Report CS 29-06
Date: May 23, 2006
Subject: Development Charges- Annual Indexing
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,
2006 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, 2006 of 6.2 percent for Non-
Residential Building 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
(2004 Development Charges Background Study) to Council in the form of contribution to
the Development Charges - City's Share should also increase by 6.2 percent. The 2006
Budget contained $590,000 of contribution for this purpose and a budgeted draw of
$264,550 thus, increasing the 2006 year-end balance to $809,704. Significant
contributions in 2007 and after are necessary in order to bring the fund balance to an
acceptable level. The Commercial/Industrial Development Charge remains at the
Council approved level of approximately 50 percent of the justified cost recovery
amount, meaning the City has to contribute to the balance.
At this juncture, the Region of Durham has not finalized the annual indexing of the
development charges the City collects on their behalf. The City will continue to use
rates prescribed as effective from October 1, 2005 until further notice from the Region.
The Education Development Charges will remain unchanged for the current year.
The main changes are to update the amounts to reflect recommendations contained in
this report. Upon receiving the final figures from the Region for the portion of the
development charges the City collects on their behalf in mid June, the brochure will be
revised and distributed. The brochure will be posted on the City's website and made
available at various counters throughout the Civic Complex.
Attachments:
1. Current and Proposed Development Charges 2006/2007
(174
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Report CS 29-06
Date: May 23, 2006
Subject: Development Charges- Annual Indexing
Page 3
Prepared By:
Approved I Endorsed By:
Q~.,-
Caryn Kong
Senior Financial Analyst
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Gillis A. Paterson
Director, Corporate Services & Treasurer
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Attachment
Copy: Chief Administrative Officer
Chief Building Official
Recommended for the consideration of
Pickering City Council
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.,.'! ïACHMENT # -'- TO REPORT # ~5'~9 ~jG
CITY OF PICKERING
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CURRENT RESIDENTIAL DEVELOPMENT CHARGES
Effective July 1, 2005
PER DWELLING UNIT
Service Single & Apt. Two Other
Category Semi Apt. One Bdrm Bdrm Dwelling
Detached ($) & 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 $25.30 per sq. metre
PROPOSED RESIDENTIAL DEVELOPMENT CHARGES
Effective July 1,2006
PER DWELLING UNIT
Service Single & Apt. Two Other
Category Semi Apt. One Bdrm Bdrm Dwelling
Detached ($) & Smaller ($) & Laraer ($) Units
Growth Studies $121 $45 $69 $98
Fire Protection 380 142 215 307
Transportation 4,685 1,743 2,661 3,806
Parks & Rec 3,469 1,292 1,972 2,818
Library 552 206 313 447
TOTAL $9,207 $3,428 $5,230 $7,476
Non-Residential - $2.50 per sq. foot or $26.87 per sq. metre
$ Increase:
Residential $536 198 304 $434
Non- $0.15 per sq. $1.57 per sq.
Residential foot metre