HomeMy WebLinkAboutFIN-10-178 - OMB Ruling on Gross Vs Net Population DC Charge Methodology in the Town of OrangevilleREPORT
REPORT TO:
Councillor B. Vrbanovic, Chair, and Members of the Finance
and Corporate Services Committee
DATE OF MEETING:
November 8, 2010
SUBMITTED BY:
Dan Chapman, General Manager of Financial Services
PREPARED BY:
Dan Chapman
WARD(S) INVOLVED:
n/a
DATE OF REPORT: November 1, 2010
REPORT NO.: FIN-10-178
SUBJECT:
ONTARIO MUNICIPAL BOARD RULING ON GROSS VS.
NET POPULATION DEVELOPMENT CHARGE
METHODOLOGY IN THE TOWN OF ORANGEVILLE
RECOMMENDATION:
THAT a financial contribution be made by the City of Kitchener to the Town of Orangeville in the
amount of $10,000 to share in the cost of the appeal of the recent Ontario Municipal Board
ruling on gross vs. net population development charge methodology.
BACKGROUND:
Council’s support is being sought in relation to a request from the Town of Orangeville to share
in the cost of the Town’s appeal of a recent OMB decision related to their Development Charges
By-Law.
REPORT:
The OMB has recently issued a ruling on the gross population methodology used in the Town of
Orangeville’s Development Charges Background Study and By-Law. The ruling is not
favourable to the position taken by the City in the 2009 Background Study. There is no
immediate implication to the City as Kitchener’s By-Law cannot be appealed for the balance of
the five-year term. However, the issue is of significant financial importance to the City and other
municipalities that have employed a gross population methodology in calculating the charge.
The Town of Orangeville is seeking financial support from other municipalities potentially
affected by this OMB decision to share in the cost of the appeal which is estimated to be as high
as $150,000. Staff are advised that six Greater Toronto Area (GTA) municipalities and six non-
GTA municipalities are impacted significantly by this OMB decision. Orangeville is requesting
that GTA municipalities contribute $15,000 and non-GTA municipalities contribute $10,000
towards the appeal. Staff are supportive of Orangeville’s request given the future financial
implications to the City of the OMB decision if it remains unchallenged.
ê ó ï
FINANCIAL IMPLICATIONS:
The level of financial support requested from the City of Kitchener is $10,000. This amount will
be funded from capital contingency which currently has a balance of approximately $73,000.
Any unused funds at the end of the appeal process will be returned to contributing municipalities
on a pro-rated basis.
ACKNOWLEDGED BY:
Dan Chapman
ê ó î