HomeMy WebLinkAboutFCS Agenda - 2026-03-09
Financial Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: March 9, 2026
SUBMITTED BY: Ryan Hagey, Director of Financial Planning & Asset Management, 519-
904-9347
PREPARED BY: Ryan Hagey, Director of Financial Planning & Asset Management, 519-
904-9347
WARD(S) INVOLVED: Ward 2
DATE OF REPORT: February 25, 2026
REPORT NO.: FIN-2026-098
SUBJECT: Savic Homes, 15 Dellroy Avenue Section 20 Development Charges
Complaint Jurisdiction Hearing
RECOMMENDATION:
That the appeal to hold a hearing pursuant to section 20 of the Development Charges Act
with relation to the development taking place at 15 Dellroy Avenue be dismissed as the
complaint was not made within the appropriate timeframe.
REPORT HIGHLIGHTS:
The purpose of this report is to determine whether Committee has jurisdiction to hear a
complaint regarding development charges at 15 Dellroy Avenue.
The key finding of this report is the complaint was made outside the 90-day timeframe
spelled out in the Development Charges Act, so no hearing should be held.
This report supports the delivery of core services.
BACKGROUND:
A complaint was filed with the City of Kitchener regarding the development charges (DCs)
imposed for a development at 15 Dellroy Avenue. Complaints of this nature are permitted under
section 20 of the Development Charges Act (DCA). City of Kitchener Council has delegated
authority to hear these complaints to the Finance and Corporate Services Committee as part of
report COR-2022-498, Development Charges Section 20 Dispute and Hearing Process.
REPORT:
The complaint regarding DCs at 15 Dellroy Avenue was made after the timeframe spelled out in
the DCA
Section 20 (2) states that a complaint may not be made later than 90 days after the day the
development charge, or any part of it, is payable. The DC complaint regarding 15 Dellroy
Avenue was received on December 5, 2025.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
A building permit for 15 Dellroy Avenue was issued by the City on March 17, 2025. Under the
DCA there are provisions to make payments for certain types of development at later dates, but
DCs become payable to the City at the time of building permit issuance. This means a formal
DC complaint would have to be made no later than June 15, 2025.
Given the complaint was made after the 90-day window afforded in Section 20 of the DCA, staff
recommended dismissing the complaint without holding a hearing.
UPDATE #1:
On January 5, 2026 Council approved an adjournment of this DC complaint so staff could meet
with Savic Homes and their representatives to discuss the complaint. This meeting took place
on January 15, 2026.
Despite ongoing requests from staff for a meeting agenda and specific details of the DC
complaint, none was provided in advance of the meeting. During the meeting representatives
for Savic Homes provided oral information regarding the nature of their complaint and said they
would provide the information in writing the following week (January 19-23). As of the time the
next staff report was prepared (January 28), the written information had not been received
After the meeting staff are still of the opinion the DC complaint should be dismissed as it was
not made within the appropriate timeframe.
UPDATE #2:
On February 9, 2026 Council approved a second adjournment of this DC complaint. Staff
received the written information promised previously from Savic Homes on February 6, 2026.
Staff have reviewed this information and are still of the opinion the DC complaint should be
dismissed and do not believe a further adjournment is in order.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
The recommendation has no direct impact on the Capital or Operating Budget.
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
COR-2022-498 Development Charges Section 20 Dispute and Hearing Process
FIN-2026-015 Adjournment of Development Charges Complaints 15 Dellroy Avenue
and 1438 Highland Road
FIN-2026-017 Savic Homes, 15 Dellroy Avenue Section 20 Development Charges
Complaint Jurisdiction
FIN-2026-071 Adjournment of Development Charges Complaints 15 Dellroy Avenue
and 1438 Highland Road UPDATE
FIN-2026-062 Savic Homes, 15 Dellroy Avenue Section 20 Development Charges
Complaint Jurisdiction UPDATE
APPROVEDBY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
ATTACHMENTS:
DC Complaint Letter for 15 Dellroy Avenue from Loopstra Nixon
Steven C. Ferri*
*Steven C. Ferri Professional Corporation
Tel: (416) 748-4752
Email: sferri@loonix.com
BY EMAIL \[amanda.fusco@kitchener.ca\]
December 5, 2025
The Corporation of City of Kitchener
200 King St W
Kitchener, ON N2G 4V6
Dear Clerk,
RE: Development Charges Complaint
Complaint Made Pursuant to Section 20 of the Development Charges Act,
1997, S.O. 1997, c. 27
Complaint respecting 15 Dellroy Avenue, Kitchener, ON
Complaint On Behalf of Savic Homes
We are the solicitors for Savic Homes (“Owner”) the owner of 15 Dellroy Avenue, Kitchener, ON
(“Subject Lands”).
The Owner is in the process of redeveloping the Subject Lands for residential housing.
It is the Owner’s understanding that the City of Kitchener (“City”) intends to assess the Owner
development charges (“DCs”) pursuant to the redevelopment of the Subject Lands, despite the
existence of a Lot Levy Agreement between a previous owner of the Subject Lands and the City
dating from 1974 and the existence of residential units on the Subject Lands.
In addition, in our opinion, the Subject Lands qualifies as containing “legally established
residential units” for the purposes of section 6.10 of the Bylaw 2022-071 (“DC Bylaw”),
exempting said units from the assessment of development charges pursuant thereto.
The DC Bylaw governs DCs within the City. Section 6.10 of the DC Bylaw provides that:
6.10 Subject to the provisions of this section, where any redevelopment or re-use of land
replaces or changes a former or existing development and, in the case of demolition upon
proof of issuance of a demolition permit for the land being provided, the development charge
applicable to the redevelopment or re-use shall be reduced by a redevelopment allowance,
without interest, not to exceed an amount equal to the total of:
(a) the number and types of legally established residential units in the former or
existing development; and
(b) the legally established non-residential gross floor area of the former or existing
development,
1
as determined by the Chief Building Official, or his or her designate, at the rates
applicable to such units or gross floor area at the time the first building permit for the
re-development is issued.
\[Emphasis added.\]
The intent of section 6.10 is to reduce the DCs payable on a development where DCs have
already been paid with respect to a previously existing development.
The former development on the Subject Lands constitutes legally existing residential units for
the purposes of the DC Bylaw. This is evidenced by the submission of plans, the issuance of
building permits, and the existence of structures which were required to be subject to said plans
and permits.
Please accept this letter as a formal complaint on behalf of the Owner pursuant to section 20 of
the Development Charges Act, 1997, S.O. 1997, c. 27 (the “Act”) with respect to the
development charges imposed upon our client on the basis that:
1. The amount of the DCs is being incorrectly determined; and,
2. There is an error in the application of the City’s DC By-law.
On the basis that detailed grounds for the complaint will be provided in due course, we
respectfully request that the City proceed to schedule a hearing of this complaint before Council.
We would appreciate the opportunity to discuss this complaint with City staff in hopes of having
it addressed in advance of the hearing date.
Please contact the undersigned should you require any additional information. Otherwise, we
look forward to working together to rectify this matter.
Yours truly,
LOOPSTRA NIXON LLP
Per: Steven C. Ferri
2
Financial Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: March 9, 2026
SUBMITTED BY: Ryan Hagey, Director of Financial Planning & Asset Management, 519-
904-9347
PREPARED BY: Ryan Hagey, Director of Financial Planning & Asset Management, 519-
904-9347
WARD(S) INVOLVED: Ward 7
DATE OF REPORT: February 25, 2026
REPORT NO.: FIN-2026-097
SUBJECT: Savic Homes, 1438 Highland Road West Section 20 Development
Charges Complaint Jurisdiction Hearing
RECOMMENDATION:
That the appeal to hold a hearing pursuant to section 20 of the Development Charges Act
with relation to the development taking place at 1438 Highland Road West be dismissed
as the complaint was not made within the appropriate timeframe.
REPORT HIGHLIGHTS:
The purpose of this report is to determine whether Committee has jurisdiction to hear a
complaint regarding development charges at 1438 Highland Road West.
The key finding of this report is the complaint was made outside the 90-day timeframe
spelled out in the Development Charges Act, so no hearing should be held.
This report supports the delivery of core services.
BACKGROUND:
A complaint was filed with the City of Kitchener regarding the development charges (DCs)
imposed for a development at 1438 Highland Road West. Complaints of this nature are
permitted under section 20 of the Development Charges Act (DCA). City of Kitchener Council
has delegated authority to hear these complaints to the Finance and Corporate Services
Committee as part of report COR-2022-498, Development Charges Section 20 Dispute and
Hearing Process.
REPORT:
The complaint regarding DCs at 1438 Highland Road West was made after the timeframe
spelled out in the DCA
be dismissed.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Section 20 (2) states that a complaint may not be made later than 90 days after the day the
development charge, or any part of it, is payable. The DC complaint regarding 1438 Highland
Road West was received on November 26, 2025.
A building permit for 1438 Highland Road West was issued by the City on May 20, 2022. Under
the DCA there are provisions to make payments for certain types of development at later dates,
but DCs become payable to the City at the time of building permit issuance. This means a formal
DC complaint would have to be made no later than August 18, 2022.
Further, the complaint regarding DCs for 1438 Highland Road West was received well into the
deferred payment schedule for the property. The first payment was due at occupancy which
took place in September 2023. Additional payments were due on the anniversary date of
occupancy in September 2024 and September 2025. All of these billed development charges
are unpaid and remain outstanding.
Given the complaint was made after the 90-day window afforded in Section 20 of the DCA, staff
recommended dismissing the complaint without holding a hearing.
UPDATE #1:
On January 5, 2026 Council approved an adjournment of this DC complaint so staff could meet
with Savic Homes and their representatives to discuss the complaint. This meeting took place
on January 15, 2026.
Despite ongoing requests from staff for a meeting agenda and specific details of the DC
complaint, none was provided in advance of the meeting. During the meeting representatives
for Savic Homes provided oral information regarding the nature of their complaint and said they
would provide the information in writing the following week (January 19-23). As of the time the
next staff report was prepared (January 28), the written information had not been received.
After the meeting staff are still of the opinion the DC complaint should be dismissed as it was
not made within the appropriate timeframe.
UPDATE #2:
On February 9, 2026 Council approved a second adjournment of this DC complaint. Staff
received the written information promised previously from Savic Homes on February 6, 2026.
Staff have reviewed this information and are still of the opinion the DC complaint should be
dismissed and do not believe a further adjournment is in order.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
The recommendation has no direct impact on the Capital or Operating Budget.
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
COR-2022-498 Development Charges Section 20 Dispute and Hearing Process
FIN-2026-015 Adjournment of Development Charges Complaints 15 Dellroy Avenue
and 1438 Highland Road
FIN-2026-016 Savic Homes, 1438 Highland Road West Section 20 Development
Charges Complaint Jurisdiction
FIN-2026-071 Adjournment of Development Charges Complaints 15 Dellroy Avenue
and 1438 Highland Road UPDATE
FIN-2026-063 Savic Homes, 1438 Highland Road West Section 20 Development
Charges Complaint Jurisdiction UPDATE
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
ATTACHMENTS:
DC Complaint Letter for 1438 Highland Road West from Loopstra Nixon
Steven C. Ferri*
*Steven C. Ferri Professional Corporation
Tel: (416) 748-4752
Email: sferri@loonix.com
BY EMAIL \[amanda.fusco@kitchener.ca\]
November 26, 2025
The Corporation of City of Kitchener
200 King St W
Kitchener, ON N2G 4V6
Attn: Amanda Fusco, City Clerk
Dear Ms. Fusco,
RE: Development Charges Complaint
Complaint Made Pursuant to Section 20 of the Development Charges
Act, 1997, S.O. 1997, c. 27
Complaint respecting 1438 Highland Road West, Kitchener, ON
Complaint On Behalf of 2296342 Ontario Inc.
We are the solicitors for 2296342 Ontario Inc. (“Savic Homes”).
Savic Homes has constructed a residential rental housing project at 1438 Highland Road
West, Kitchener, ON (“Subject Lands”).
On April 14, 2022 the City of Kitchener (“City”) issued a Deferred Payments Determination
(“DPD”) for the Subject Lands. The DPD provided that:
The following fees shall be paid over a term of 5 years for your Rental Housing
project. First payment is due within 30 days of the date occupancy is granted, and
then payment is due each year by that same occupancy anniversary date thereafter
until paid in full. Please note annual interest charges as determined by both City and
Region will also apply at the rate of Prime + 2%.
Suburban Area: $1,344,676.00
Region of Waterloo: $2,169,795.00
Total DC: $3,514,471.00 (not including calculated interest)
On December 14, 2023 the City of Kitchener (“City”) issued invoice 778907 to Savic Homes
for a total amount of $789,657.07 in Development Charges (“DCs”). On September 30, 2024
the City issues invoice 789399 for $711,553.07 in DCs, and on September 11, 2025 the City
issued invoice 801309 for $686,391.48 in DCs.
1
Savic Homes, through its solicitors, have communicated their disagreement with the DCs as
assessed by the City on the basis that the development on the Subject Lands meets the
definition of Affordable Residential Units pursuant to the Development Charges Act (“DC
Act”). Pursuant to section 4.1(8) of the DC Act, Affordable Residential Units are exempt
from DCs. As per the DPD, a portion of the DCs are payable after June 1, 2024. They are
therefore payable after the transition date noted in section 4.1(14) of the DC Act and are
exempt pursuant to section 4.1(8). The City has erroneously failed to apply this exemption to
the Subject Lands.
Please accept this letter as a formal complaint on behalf of Savic Homes, pursuant to
section 20 of the DC Act with respect to the DCs imposed upon our client.
Detailed grounds for the complaint shall follow in due course.
On the basis of the forgoing, and on further grounds that will be provided in due course, we
respectfully request that the City of Kitchener proceed to schedule a hearing of this
complaint before Council. We would appreciate the opportunity to discuss this complaint
with staff in hopes of having it addressed in advance of the hearing date.
Please contact the undersigned should you require any additional information. Otherwise,
we look forward to working together to rectify this matter.
Yours truly,
LOOPSTRA NIXONLLP
Per: Steven C. Ferri
2
Corporate Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: March 9, 2026
SUBMITTED BY: Nicole Amaral, Innovation Lab Director, 519-783-8175
PREPARED BY: Nicole Amaral, Innovation Lab Director, 519-783-8175
Dan Murray, Director of TIS, 519-783-8435
WARD(S) INVOLVED: All
DATE OF REPORT: February 20, 2026
REPORT NO.: COR-2026-102
SUBJECT: Digital Kitchener review final report
RECOMMENDATION:
That the Digital Kitchener strategy be approved, attached as Appendix A to Corporate
Services staff report COR-2026-102; and further,
That staff be directed to use the refreshed Digital Kitchener strategy to guide the
approach to digital initiatives, priorities, and investments over the course of
20262030.
REPORT HIGHLIGHTS:
The purpose of this report is to seek Council approval of Digital Kitchener 2.0, a
refreshed strategy to guide the digital transformation from 20262030.
The key finding of this report is that through engagement and research, a vision was
developed that, Digital Kitchener drives a culture of collaboration where community
voices guide digital initiatives, services are efficient and accessible, and innovation
unlocks opportunities across our city.
The financial implications are unique to each initiative and will be requested through
the regular budget cycle with the relevant division.
Community engagement included broad participation gathered through surveys,
workshops, and consultations with residents, staff, partners, and the tech community.
This report supports Stewarding a Better City Together: Focuses on City
employees as stewards of Kitchener; responsive, innovative, diverse &
accountable public servants working together to serve residents; removing
barriers and championing a better city and a better world.
BACKGROUND:
In 2017, the first Digital Kitchener strategy, guided by the pillars
Connected, Innovative, On Demand, and Inclusive. Since then, advanced work
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
such as expanding public Wi-Fi, improving online service access, strengthening
mapping tools, and growing civic innovation through pilots and
In 2025, a refresh of the strategy, as a part of the 2023-2026 City of
Kitchener Strategic ensure the digital direction reflects current community
needs and rapid advances in
The original Digital Kitchener strategy was supported by Council as a Citywide initiative. The
refreshed strategy builds on that foundation and reflects extensive engagement and
research involving residents, staff, partners, and the local innovation community. Bringing
the strategy forward for Council approval confirms the long term digital direction,
ensures transparency and accountability, and provides staff with a clear framework to guide
future digital planning and
REPORT:
Digital Kitchener 2.0 is a refreshed outward-facing strategy that sets the direction for how
the City will advance digital services, innovation, and technology use over time. Rather than
prescribing fixed solutions or specific tools, the strategy focuses on clear ways of working
that enable the City to adapt as technology, community needs, and service expectations
continue to evolve.
This approach supports responsible innovation, strengthens collaboration, and ensures
digital initiatives remain aligned with community priorities, organizational capacity, and
Council direction.
Our vision
Digital Kitchener drives a culture of collaboration where community voices guide digital
initiatives, services are efficient and accessible, and innovation unlocks opportunities across
our city. !
We have created a set of goals to move this vision forward. We will:
Deliver seamless digital services anytime, anywhere
o Moving more city services online and enhancing existing ones
o Using AI-enabled solutions to streamline customer-facing service delivery
o Enhancing the website search function and content for faster and accurate
results
Build a connected and smart city
o Using AI and data to inform predictive maintenance and monitor infrastructure
o Supporting pilot projects using local tech for municipal challenges
o Advancing operational efficiency through automation and AI
Cultivate an innovative and collaborative community
o Providing and promoting collaborative spaces and shared digital tools
o Growing local collaborations to test and scale innovative municipal solutions.
o Modernizing city processes for easier engagement
Ensure inclusive and equitable access
o Updating technology access and Wi-Fi in our community spaces
o Working with our partners to increase digital literacy
o Using feedback to improve digital quality and access
Advance open data for transparency and innovation
o Using data to share information and allow community exploration
o Sharing key datasets and formats that drive innovation and investment
o Standardizingdatasystemstoensureseamlessintegration
Embrace experimentation and city-wide innovation
o Reimagining the innovation lab model to support bold ideas and solutions
o Fostering a culture of innovation across the organization
o Exploring collaboration concepts and opportunities
How Digital Kitchener 2.0 will guide our work
Digital Kitchener 2.0 provides a shared strategic compass for how the City approaches
digital services, innovation, and emerging technologies. Rather than prescribing specific
solutions, the strategy establishes strategic ways of working that allows the organization to
adapt responsibly as technology, community expectations, and risks continue to evolve
while remaining aligned with Council direction and public interest.
Responsible, adaptive innovation
o The strategy supports learningdriven experimentation, evidencebased
decisionmaking, and the responsible use of emerging technologies, including
AI, ensuring innovation advances at a pace the organization can govern,
sustain, and trust.
Ongoing engagement and external insight
o Digital Kitchener prioritizes flexible engagement with staff, community
partners, and external experts to challenge assumptions, bring diverse
perspectives, and inform decisions as technology and policy contexts change.
Transparency, accountability, and organizational learning
o The strategy emphasizes sharing progress, outcomes, and lessons learned to
build trust, strengthen accountability, and ensure insights from practice
continuously inform future priorities and investments.
Implementation
Digital Kitchener is intended to provide strategic direction rather than a fixed, multiyear
work plan. The strategy establishes a shared framework that allows the City to respond to
emerging opportunities while continuing to engage community partners.
Implementation is proposed to occur through an annual, objectivebased approach
whereby:
Staff identify four to five objectives each year that advance the intent of the Digital
Kitchener strategy; and
Subject to engagement with the community, technology experts, staff and council,
staff scope and advance initiatives over the following 12 months to support those
objectives. Initiatives with budget implications will be brought forward for Council
consideration through future budget processes.
The principles of Digital Kitchener will also be applied to all technology investments and
initiatives to ensure that ongoing technology and innovation activities contribute to the
success.
Communications and marketing
Consultation highlighted the importance of clearly and consistently communicating
innovation story. Staff will work with Corporate Communications to develop a
coordinatedcommunicationsapproachtosupportDigitalKitchenerandrelatedinitiatives.
Communications will focus on increasing awareness of the strategy, sharing progress and
outcomes, and reinforcing reputation as an innovative and forwardlooking
community. Messaging will evolve alongside implementation and will highlight key
milestones, partnerships, and annual objectives as they are advanced.
STRATEGIC PLAN ALIGNMENT:
This report supports Stewarding a Better City Together: Focuses on City employees as
stewards of Kitchener; responsive, innovative, diverse & accountable public servants
working together to serve residents; removing barriers and championing a better city
and a better world.
FINANCIAL IMPLICATIONS:
Capital Budget The recommendation has no impact on the Capital Budget.
Operating Budget The recommendation has no impact on the Operating Budget.
COMMUNITY ENGAGEMENT:
The Digital Kitchener Strategy Review was informed by a structured, multiphase
engagement program involving residents, City staff, stakeholders, the local technology
community, advisory committees, and City leadership. Engagement activities were designed
to gather broad input, identify barriers and opportunities, and support transparency and
inclusive decisionmaking.
Communication efforts included promotion through City digital channels, direct outreach to
stakeholder groups and advisory committees, and collaboration with community and
technology partners to broaden participation and reduce barriers to engagement.
INFORM
This report has been posted to the website with the agenda in advance of the
council / committee meeting.
Information about the purpose, scope, and progress of the Digital Kitchener Strategy
Review was shared with participants throughout the project. Background materials,
engagement findings, and next steps were communicated to support informed
participation and transparency.
CONSULT Residents, staff, and stakeholders were consulted through surveys and
focused engagement sessions to identify digital service challenges, barriers, and
opportunities. Participants were asked to prioritize desired service improvements and future
digital capabilities, ensuring community and staff input directly informed the
direction.
COLLABORATE Collaborative engagement sessions brought together community
members, staff, stakeholders, and the local technology sector to codevelop and refine
ideas. These sessions emphasized shared problemsolving, innovation, and partnership to
shape practical and inclusive actions.
ENTRUST n/a
PREVIOUS REPORTS/AUTHORITIES:
FCS-17-002 Digital Kitchener Strategy
COR-2024-068 Digital Kitchener Innovation Lab Exploration of Artificial Intelligence
COR-2026-007 Strategic Session: Digital Kitchener and Corporate-Wide Data
Strategies
COR-2026-053 Artificial Intelligence (AI) Education Session
APPROVED BY:
Dan Chapman, CAO (on behalf of Victoria Raab, GM-Corporate Services)
ATTACHMENTS:
Attachment A: Digital Kitchener 2.0 strategy draft