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FIN-10-075 - Develoment Charges By-law Amendment - Cemeteries
REPORT REPORT TO: Councillor B. Vrbanovic, Chair, and Members of the Finance and Corporate Services Committee DATE OF MEETING: April 26, 2010 SUBMITTED BY: Dan Chapman, General Manager of Financial Services and City Treasurer PREPARED BY: Dan Chapman WARD(S) INVOLVED: All DATE OF REPORT: April 13, 2010 REPORT NO.: FIN 10-075 SUBJECT: DEVELOPMENT CHARGES BY-LAW AMENDMENT (CEMETERIES) RECOMMENDATION: THAT the increase in the need for cemetery services attributable to anticipated development in the City of Kitchener be met, subject to sufficient development charge revenues being generated and other City affordability criteria being met; THAT the Development Charges Amendment Background Study dated March 4, 2010 and the cemetery capital forecast prepared in conjunction with the Study in accordance with Section 10 of the Development Charges Act, 1997, be adopted; THAT future excess capacity identified in the Development Charges Amendment Background Study, dated March 4, 2010, be paid for by development charges or other similar charges; AND FURTHER THAT the proposed Development Charge By-law Amendment be approved in the form attached to Report FIN 10-075 BACKGROUND: Kitchener Council passed By-Law 2009-091 on June 22, 2009 to establish development charges for the City of Kitchener. An amendment to the By-Law is being proposed to incorporate a charge for cemetery services consistent with the capital forecast adopted by City Council on January 18, 2010. The approved capital forecast included costs related to the expansion of Williamsburg Cemetery, a portion of which is to be funded through development charges. Council held a public meeting on April 12, 2010 as required under the Development Charges Act, 1997, to allow the public an opportunity to review and provide comments on the attached ç ó ï Background Study and related Development Charges By-Law amendment (refer to staff report FIN-10-039). REPORT: The attached Development Charges Amendment Background Study provides information on the proposed development charge for cemetery services. Also attached is a copy of the proposed By-Law amendment. The purpose of the amendment is to introduce a development charge for cemetery services. This results from the introduction of the expansion of Williamsburg Cemetery (Phase 2) in the 2010 capital forecast based on the Cemetery Strategic Plan (approved in 2006) and the Williamsburg Phase 2 Business Plan (approved in late 2009). The current proposal would levy a development charge for the recovery of the growth-related net capital costs of the expansion. In accordance with the requirements of the Development Charges Act, 1997, the following steps have been undertaken to calculate the charge as outlined in detail in the attached Background Study: 1. Prepare growth forecast 2. Establish historic service level 3. Prepare growth-related capital forecast 4. Calculate development charge 5. Estimate capital and operating cost impacts The resulting per unit charge for a single-detached or semi-detached home is $26.97. Subject to Council’s approval, this new charge will come into effect on June 1, 2010. A public meeting was held on April 12, 2010 in accordance with the requirements of the Development Charges Act, 1997. No members of the public made representations to Council in person or in writing at the public meeting. FINANCIAL IMPLICATIONS: The approved 2010 capital forecast included $5 million in costs related to future cemetery expansion, of which approximately 30% was anticipated to be funded through development charges. The attached Background Study shows that, at most, approximately 20% may be funded through development charges. The resulting funding shortfall will be addressed through future budgets and business cases. COMMUNICATIONS: The attached Background Study was presented to the Waterloo Region Homebuilders Association (WRHBA) Liaison Committee at a meeting on March 19, 2010. In addition, notice of the April 12, 2010 public meeting was published on March 19, 2010. 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