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REPORT TO: Council <br />DATE OF MEETING: April 1, 2019 <br />SUBMITTED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 <br />PREPARED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 x 7353 <br />WARD (S) INVOLVED: All <br />DATE OF REPORT:March 6, 2019 <br />REPORT NO.: FIN-19-029 <br />SUBJECT: 2019Development Charges Priorities & Rate Options <br />___________________________________________________________________________ <br />RECOMMENDATION: For Discussion <br />Staff are seeking Council’s initial feedback with respect to whether or not future <br />development charge rates should be set at the maximum allowable charge per the <br />development charge legislation, or at some lower amount.If the consensus is that the <br />draft development charge rates should be set at an amount lower than the maximum <br />allowable charge, Council members are asked to identify projects that could potentially <br />be reduced or removed from the capital program (Appendix A) due to the reduced <br />funding available for projects.This feedback will guide staff in the finalization of a draft <br />development charges background study for public input. <br />BACKGROUND: <br />The Development Charges Act and its associated regulation allow municipalities to impose <br />development charges to pay for growth-related capital costs to service new development. <br />In order to do so, under the terms of the Act, municipalities must prepare a development charge <br />background study and pass a bylaw to determine the development charges, taking the following <br />into account: <br />A forecast of the amount, type and location of development anticipated in the municipality <br />for which development charges can be imposed. <br />The average capital service levels provided by the municipality in the 10-year period <br />immediately preceding the preparation of the background study. <br />A review of future capital projects, including analysis of gross expenditures, funding <br />sources and net expenditures incurred or to be incurred by the municipality, to provide <br />for the expected development. <br />An examination of the long term capital and operating costs for capital infrastructure for <br />each service to which the development charges relate. <br />Development charge (DC) bylaws have a maximum term of five years. Kitchener’s DC bylaw <br />expires on July 1,2019. In order to update the bylaw, a background study must be published, <br />and at least one public meeting must be held. <br />2 - 1 <br />