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Home My WebLink AboutCS 15-08 Citq o~ REPORT TO EXECUTIVE COMMITTEE Report Number: CS 15-08 Date: May 12, 2008 1 U From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Development Charges Reserve Fund - Statement of the Treasurer for 2007 Recommendation: That Report CS 15-08 of the Director, Corporate Services & Treasurer respecting the Development Charges Reserve Fund be received and forwarded to Council for information. Executive Summary: Section 43 of the Development Charges Act, 1997 (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 enclosed Attachments 1 to 6 details the activity in the Development Charges Reserve Fund for the year ended December 31, 2007 in the manner as prescribed by the Act. As required under Section 43(3) of the Act, the Treasurer will be forwarding a copy of this same Statement to the Minister of Municipal Affairs and Housing within 60 days upon furnishing the Statement to the Council. Financial Implications: report. There are no financial implications associated with this Sustainability Implications: The availability of funding from Development Charges Reserve Funds assists in sustaining infrastructure related to growth. Background: Funds are not transferred out of the Development Charges 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 under "Fund Balance - Prior to Budget Commitments" of $23,528,008. Taking into account the "Budget Commitments" as at December 31, 2007 of $3,664,630 the "Fund Balance - After Budget Commitments" available for future expenditures is $19,863,378. Report CS 15-08 Date: May 12, 2008 Subject: Development Charges Reserve Fund-Statement of the Treasurer for 2007 Page 2 1 1 The development charges collected in 2007 were $1,457,284 a decrease of 18% from amounts collected in 2006 ($1,782,148). Despite an economic condition of low interest rates and a booming building industry, there is a decrease in the amount collected due in part to the limited land available for development in Pickering. Attachment 2 provides a chart showing the 10-year historical pattern of the development charges collected, notably the sharp decline starting from 2005 and continuing in 2007 compared to those collected in 2003 and 2004 due to the point mentioned above. The cumulative total collected for this 1 O-year period was $24,362,224. The 2007 budgeted funding and revision due to aES 41-07 from this Reserve Fund was $1,229,990 as detailed on Attachment 3. The capital expenditures actually incurred in 2007 that were funded from this Reserve Fund amounted to $1,240,523 (see Attachment 4). These expenditures pertained to capital projects approved in 2000 to 2007. Attachment 4 provides a summary by projects of these capital expenditures funded by development charges and other sources as prescribed by a.Reg. 82/98 Section 12(3). In 2007, the City undertook additional internal loans of $597,000 from this Reserve Fund. Attachment 5 provides detailed information on the 2007 internal borrowings and the purpose for which it was borrowed as prescribed by a.Reg. 82/98 Section 12(2)3. Interest and principal repayments on 2007 internal loans will commence in 2008. As of December 31, 2007, the total outstanding internal loans undertaken from 2001 to 2007 are $3,891,812 (see Attachment 6). Please note that the principal and interest of $1,311,291 paid in 2007 and as indicated in Attachment 6 are related to 2001 to 2006 internal loans. This amount was funded from the general tax levy. This Attachment 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 a.Reg. 82/98 Section 12(2)4,5. Caution has to be used when budgeting for draws for capital projects due to the limited availability of land in Pickering and the uncertainty of economic times ahead of us. Attachments: 1. 2007 Annual Statement of Development Charges Reserve Fund 2. Development Charges Collected 1997 -2007 3. Projects Approved in 2007 Capital Budget to be Funded from Development Charges Reserve Fund 4. 2007 Actual Capital Expenditures Summarized by Projects 5. 2007 Internal Loans from Development Charges Reserve Fund - New Loans Undertaken During the Year Report CS 15-08 Date: May 12, 2008 Subject: Development Charges Reserve Fund-Statement of the Treasurer for 2007 Page 3 1 6. Development Charges Reserve Fund Internal Loans - Annual Repayment for the Year Ended December 31,2007 Prepared By: Approved I Endorsed By: -e~ ~'~/D~~ ,-----( ,__ /' 0.- Gillis A. Paterson Director, Corporate Services & Treasurer Caryn Kong Senior Financial Analyst GP:ck Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering City ~ouncil A" /' .,.:;" .' .-~.< //' .---"~~ - - - -:-y'-- // 2007 Annual Statement of Development Charges Reserve Fund (unaudited) Development Charges Act S 43 As at December 31,2007 I -~ -"' Development Fire: Roads & Storm Water Transit Parkland Recreation Library: ~, ...... Related Facilities & Related Management Vehicles * Development Facilities Facilities & Total { .........j Studies Vehicles & Equip & Trail Materials $ $ $ $ $ $ $ $ $ Open. Balance as at Jan. 1, 2007 488,480 1,720,061 9,694,037 232,044 395,142 2,104,452 7,413,731 688,525 22,736,472 A Less Previous Year FS adjustment' (395,142) (395,142) Revised Opening Balance 488,480 1,720,061 9,694,037 232,044 0 2,104,452 7,413,731 688,525 22,341,330 REVENUES Dev, Charges Received 31,863 112,196 632,324 15,136 0 137,270 483,584 44,911 1,457,284 Returned to source 0 0 0 0 0 0 0 0 0 Interest Received- Internal Loans 494 1,741 9,812 235 0 2,130 7,504 697 22,613 Interest Received-External Investments 20,733 73,007 411,461 9,849 10,200 89,323 314,674 29,224 958,471 53,090 186,944 1,053,597 25,220 10,200 228,723 805,762 74,832 2,438,368 EXPENDITURES Capital Expenditures (294,266) (817,154) (115,700) (13,403) (1,240,523) Current Expenditures (967) (967) Transfer to Region' - (10,200) (10,200) Total Expenditures (967) (294,266) (817,154) (115,700) (10,200) (13,403) (1,251,690) :::; )J Fund Bal.- Prior to Budget Commitments (GL) 540,603 1,612,739 9,930,480 141,564 0 2,319,772 8,219.493 763,357 23,528,008 () :r: Budget Commitments, Unspent Am!. Dec, 31,07 (60,903) (524,800) (202,912) ~ (2,792,187) - (83,828) (3,664,630) rT; Fund Bal. After Budget Commts Dec, 31, 07 479,700 1,612,739 7,138,293 (383,236) 2,116,860 8,135,665 763,357 19,863,378 "j.. ';--,.. ~ A Amount reported last year, prior to year-end financial statement adjustment . Total amount remitted to the Region $405,342 due to the transfer of Transit to the Region ($395,142 + $10,200) :f~t, i r.. v~ -- IF, t- OO , Development Charges Collected 1997 -2007 $ 4.,000.,000 3.,500.,000 3.,000.,000 2.,500.,000 2.,000.,000 1.,500.,000 1.,000.,000 500.,000 0 1997 1999 2001 2003 2005 2007 Year I ~ City's Sharel I .1: 3: m Z -I ~, a ~ -a o ~ :n: \--~ !t?"I - if.. ~ _.0. 0(' --" l'~~ .._----~.~""'._.....",,',""'~~,~"""",.,.~ 1 1 4 0, oLTOREPORT# L 'J 1<;-.) S Projects Approved in 2007 Capital Budget to be Funded from Development Charges Reserve Fund Source of Funding GL Dev. Charge D.C-City's Parkland Debt Total Account Res. Fund Share Res. Res. Fund Projects: Parks Sunbird Trail 5780.0706. $ 171,000 $ 29,000 $ $ 200,000 Playground Equipment-Clearside 5780.0707. $ 45,315 $ 7,685 $ 147,000 $ 200,000 $ 216,315 $ 36,685 $ 147,000 $ 400,000 External Subdivision ( Roads) Town Centre West 5321.0701 158,400 52,800 211,200 Walnut Lane Extension 5321.0702 90,000 30,000 120,000 Valley FarmlTillings Rd Bridge 5321.0703 315,000 35,000 350,000 Wharf SUWest of Liverpool 5321.0705 5,000 20,000 25,000 Liverpool Rd/Annland St to Wharf St 5321.0706 $ 19,575 $ 58,725 $ 78,300 $ 587,975 $ 196,525 $784,500 External Subdivision ( Sidewalks & Streetlights) Brock Rd/Third Concession/Taunton 5321.0707 $ 200,000 $ 200,000 $ 400,000 Kingston RdNalley Farm 5321.0708 40,950 40,950 81,900 $ 240,950 40,950 200,000 $ 481,900 External Subdivision ( Traffic Signals) ) Pickering Parkway/Portland Crt 5321.0709 48,750 16,250 65,000 $ 48,750 $ 16,250 $ 65,000 External Subdivision ( Storm Water Management) Storm Water Mgmt Works 5321.0710 $ 136,000 $ 24,000 $ 160,000 $ 136,000 $ 24,000 $ 160,000 Total $1,229,990 $314,410 $147,000 $200,000 $1,891,400 2007 Actual Capital Expenditures Summarized by Projects O.Reg. 82/98 Section 12(3). GL Account Dev. Charges D.C-City's Fed. Gas Reserve Fund Share Res Tax RF Parkland Easement Property Res Fund Reserve Taxes Debt! Loan Total Fire Addition & Renovations to Station 5 Total -Fire Parks Sunbird Trail Playground Equipment-Clearside Total.Parks External Subdivision Road Construction: Valley Farm/ Pickering Parkway Finch Ave. to Brock 450m east Road Urbanization-Finch/Petticoat Crk Woodview Ave. North Woodview Ave. South to Hydro Corridor Finch North to Rosebank Woodview Ave/Finch. to Hydro Corridor Kingston Rd/Rosebank Rd Sidewalk & Streetlioht Bayly-Brock to Alliance Rd Bayly-Alliance Rd to GO Station Brock/Third Concession/Taunton Storm Water Rouge Park Neighbourhood Total Ext. Subdivision Works 5340.0607 $ 294,266 $ 14,468 $ 643,621 $ 952,356 $ 294,266 $ $ 14,468 $ 643,621 $ 952,356 5780.0706 $ 3,710 $ 629 $ 4,339 5780.0707 9,693 1,644 33,063 . 44,400 $ 13,403 $ 2,273 $ $ 33,063 $ $ $ 48,739 5321.0320 5321.0501 5321.0502 5321.0505 5321.0506 5321.0514 5321.0601 5321.0602 5321.0604 5321.0605 5321.0707 5321.0021 24,350 - 24,350 2,035 50,889 52,924 10,436 10,436 20,872 97,875 97,875 195,750 469,615 469,614 939,229 13,128 13,129 26,257 32,476 32,4 76 64,952 2,992 2,991 1,024 7,007 652,907 677,410 1,024 - 1,331,341 2,449 2,449 4,898 2,172 2,172 4,344 157,500 157,500 315,000 162,121 4,621 - - 157,500 324,242 115,700 11 ,800 22,500 150,000 115,700 11,800 22,500 150,000 $ 930,728 $ 693,831 $ 1,024 $ 180,000 $ 1,805,583 Sidewalk 401 Pedestrian Bridge/Town Centre/GO 5323.0501 $ 2,126 $ 13,109 $ 6,024 $ 21,259 $ 2,126 $ 13,109 - $ 6,024 $ 21,259 Total Spent $ 1,240,523 $ 696,104 $ 13,109 $ 33,063 $ 6,024 $ 15,492 $ 823,621 $ 2,827,937 :-l. j a ~ -0 0 ~ :t:t: ~ I~\ -'> 1 v".. en ..... \.1'( ~" " "'''r:NT#~TO REPORT#1'..~ 15-:")(1 .-1 A i i t\ CITY OF PICKERING 2007 INTERNAL LOANS TO BE BORROWED FROM THE DEVELOPMENT CHARGES RESERVE FUND 2007 Budget Cost Centre Proiect Number Reference Terms Description Amount Fire 5340.0702.6173 Various POs 5- Year Furniture & Equipment $ 150,000 07 -2240-002 -01 for Station 5 addition Parks 5780.0701.6129 OES 39-07 10-Year Repair & Resurface Bev 134,000 07 -2718-001-01 Morgan running track 5780.0712.6178 OES 23-07 5-Year Two Utility Tractors 86,000 07 -2718-004-01 Civic Complex 5700.0704.6181 8- Year Pattern Concrete-Entrance 38,000 07 -2124-005-01 Civic Complex Arena 5715.0703.6181 PO 270468 5- Year Replacement of concrete 50,000 07 -2715-005-02 floor on Pad 2-Don Beer Design only Community Centre 5719.0702.6181 OES 34-07 10-Year Repave parking lot 139,000 07 -2719-005-05 Westshore Comm Ctr Total Internal Loans $ 597,000 Repayment of loans commencing in 2008 Development Charges Reserve Fund Internal Loans - Annual Repayment for the Year Ended December 31,2007 Total 4,426,565 (1,131,753) t Source of Funding Annual Charges (Principal & Interest) Gen. Tax Levy Outstanding Principal 2007 Dec. 31,2007 $ 315,794 274,039 55,790 328,077 52,640 292,284 140,354 496,148 1,955,126 (0) 86,747 43,653 66,956 22,387 30,781 387,839 638,363 65,565 o 4,909 70,474 130,097 25,302 23,789 179,188 31,092 106,953 40,418 178,463 35,208 61,231 22,962 94,142 59,656 273,199 38,000 150,000 220,000 189,000 597,000 3,891,812 O.Reg. '82/98 S. '00#-'- ('5 le-vf .1 I I Interest 2007 $ (15,183) (13,175) (2,682) (15,773) (9,633) (14,052) (6,748) (23,854) (101,100) (344) (4,456) (2,243) (4,601) (1,150) (1,581) (19,925) (34,300) (3,275) (7,858) (245) (11,378) (6,367) (1,368) (1,164) (8,899) (1,519) (5,225) (1,974) (8,718) (1,955) (3,400) (1,275) (5,228) (3,285) (15,143) (179,538) t Gen. Tax Levy (1,311,291 )