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Home My WebLink AboutFIN-06-019 - 2005 Development Charges Reserve Fund ) db KITCHENER Financial Services ~ Report To: Date of Meeting: Submitted By: Prepared By: Ward(s) Involved: Date of Report: Report No.: Subject: Councillor B. Vrbanovic, Chair, and Members of the Finance and Corporate Services Committee June 12, 2006 Pauline Houston, General Manager of Financial Services and City Treasurer Ruth-Anne Goetz, Financial Analyst All May 18, 2006 FIN-06-019 2005 DEVELOPMENT CHARGES RESERVE FUND RECOMMENDATION: For information only. BACKGROUND: The Development Charge legislation requires the Treasurer to submit to Council an annual statement of the Development Charge (DC) Reserve Fund. REPORT: Categories of Service: Development charges are collected to fund growth-related capital costs for services as allowed by legislation. Services are grouped into two categories - discounted services and non- discounted services. The Development Charges Act requires that a discount of 10% be applied to the growth-related capital costs for "soft services" when calculating development charge rates. Discounted services are for Recreation and Library services. Non-discounted services refer to services for which the legislation does not require a reduction. Non-discounted services are for Roads, Sanitary Sewers, Water, Storm Sewers, Various Studies and Fire. A summary of the DC Reserve Fund by Category of Service is at Table A. Rates The 2005 DC rates are set out in Table B. The rates are increased January 1 each year in accordance with the index prescribed by Provincial legislation. Revenue DC collections in 2005 total $9.6 M, an increase from 2004 collections of $8.4 M. Of the total revenue, $9.0 M was attributable to residential development and $0.6 M was for non-residential development. Exoenses DC expenses to December 31, 2005 total $6.9 M. DC expenses incurred during 2004 amounted to $8.3 M. A detailed list is included in the DC Reserve Fund Transactions in Tables C, D and E. As part of the 2004 by-law, the City has implemented different rates for the Central Neighbourhoods as compared to the Suburban Areas of the City (as defined in the DC by-law). Related revenues and expenses broken down by service are shown for both of these areas in Table E. Exemotions DC exemptions in 2005 total $0.5 M compared to $0.3 M in 2004. Of the total exemptions, $0.3 M was attributable to residential development and $0.2 M was for non-residential development. Major exemptions are the 50% industrial enlargement exemption, additional dwelling units in existing residential exemption, downtown core exemption and exemptions for municipal, Federal and school use and hospital additions. A summary of major exemptions is included in Table F. Redevelopment allowances are also included in the summary. Debt No debt is outstanding in regards to any DC funded projects. Service-in-Lieu Credits The City may, by agreement, permit a developer to provide services for development of his land in lieu of payment of the development charge. At December 31, 2005, credits of $5.3 M were outstanding compared to $5.8 M at the end of 2004. See Table G for more details. Deferral Aareements At December 31, 2005, there was one deferral agreement with a total outstanding balance of $0.1 M. See Table H for more details. Reserve Fund Balances The DC Reserve Fund at December 31, 2005 was $8.5 M compared to $5.5 M at the end of 2004. Bv-Iaw The current DC by-law came into effect July 1, 2004 for a term of no longer than five years. The by-law is being appealed by the development industry. An Ontario Municipal Board hearing was undertaken, and was completed in the middle of March, 2006. The City is currently awaiting a resolution from the Board member. FINANCIAL IMPLICATIONS: As noted above. COMMUNICATIONS: A copy of this report will be sent to the development industry and to the Minister of Municipal Affairs and Housing. Ruth-Anne Goetz, CA Financial Analyst Pauline Houston, CA General Manager of Financial Services & City Treasurer <( ~ co <( f- o Z(/) ::)W LLU W> >0:: O::W W(/) (/)LL Wo 0::>- (/)0:: Wo C)C) O::w <(f- I<( Uu f->- Zco ~6: a...<( g~ W~ >::) W(/) o III o f- co M ~ '<:t ..n r:::~~ ~~Ul '<:tOC\J ci C\J ~, ~ ~ -t; '<:t cO III o f- o CO o m g~g ~~i ~ co M Q) ~ Ul Q) ~ Z ~~~ ~~~ co CD ~ '<:t ~ ~ Q) 0:: ~ I"'- ~ g;]!::~ ci ~ C\J. '<:tMlJ') ~ ~ ~ Q) CD ~ III o f- ~ ~ o:i cr;R~ ~:,~ com" ~,- ~, ~ co I.l) N g cD Ul Q) ~ Z ~~[2 ::. ci ~ lJ')C\J0> '<:t M ~ o CD I.l) ~ Q) I"'- g Ul Q) 0:: CD '<:t '<:t ~ M ~r:::~ ~ :::. '<:to M'<:tCO ~,-~ ~ Q) Q) CD ~ cD ~ I.l) o o N M (j) ,Q ~ Q) C g tU <<i l:C M (j) ,Q E ~ Q) Ul C ~ g Q) tU ~ <<i W l:C TABLE B DEVELOPMENT CHARGE RATES Residential Develooment $7,174 / dwelling unit Single detached or semi-detached dwelling Townhouse or street townhouse dwelling Multiple or duplex dwelling Lodging House Non-Residential Develooment Gross floor area of building Central Neighbourhoods $4,331 $4,182 $2,838 $1,494 $11.31 $1.05 Suburban Areas $6,927 / dwelling unit $4,700/ dwelling unit $2,474/ dwelling unit $12.11 / square metre $1.12 / square foot TABLE C CITY OF KITCHENER SUBURBAN AREA DEVELOPMENT CHARGES 861021 2005 TRANSACTIONS Balance December 31, 2004 6,250,077 Revenues DC Act Revenue Investment Income Total Revenues Exoenditures City Share of Subdivisions Engineering Studies Fire - Opticom Fire Station 7 and Pumper Grand River South Pumping Station Heritage Impact Assessments Huron Rd New Watermains Stoke Drive Pumping Station Victoria St. N. Pumpting Station Storage Country Hills Library Chandler Mowat Community Centre Victoria Hills Community Centre Addition Community Trails General Park Development Major Park Development Soccer Facilities Fleet Acquisitions Total Expenditures Balance December 31, 2005 9,204,327 232,263 253,000 152,000 44,000 388,800 200,000 16,874 1,741,000 232,000 280,000 368,000 543,635 950,710 456,654 31,313 100,638 180,922 59,148 274,000 9,436,590 6,272,694 9,413,973 TABLE C CITY OF KITCHENER CENTRAL NEIGHBOURHOODS DEVELOPMENT CHARGES 861022 2005 TRANSACTIONS (757,759) Balance December 31, 2004 Revenues DC Act Revenue Investment Income Total Revenues Exoenditures Heritage Impact Assessments Intensification Allowance Country Hills Library Chandler Mowat Community Centre Victoria Hills Community Centre Addition Community Trails General Park Development Major Park Development Soccer Facilities Total Expenditures Balance December 31, 2005 443,944 (26,115) 2,526 269,640 81,365 142,290 68,346 4,687 15,062 27,078 8,852 417 ,829 619,846 (959,776) TABLE D CITY OF KITCHENER DEVELOPMENT CHARGES RESERVE 2005 EXPENSES Funded from Funded from Suburban Central Area Neighbourhoods Other DC Reserve DC Reserve Funding City Share of Subdivisions 253,000 Engineering Studies 152,000 Intensification Allowance 269,640 Fire - Opticom 44,000 Fire Station 7 and Pumper 388,800 Grand River South Pumping Station 200,000 Heritage Impact Assessments 16,874 2,526 Huron Rd 1,741,000 83,599 New Watermains 232,000 Stoke Drive Pumping Station 280,000 Victoria St. N. Pumpting Station Storage 368,000 1,107,100 Country Hills Library 543,635 81 ,365 69,000 Chandler Mowat Community Centre 950,710 142,290 151,500 Victoria Hills Community Centre Addition 456,654 68,346 58,300 Community Trails 31,313 4,687 72,900 General Park Development 100,638 15,062 12,600 Major Park Development 180,922 27,078 85,840 Soccer Facilities 59,148 8,852 68,000 Fleet Acquisitions 274,000 171,280 6,272,694 619,846 1,880,119 ! ~ ~ ~ :;j ~ ~ ~::::" ~" I ~ ~ ~.~ ~ ' ~J ~. ~.~. ~. '"'''''''' ~ I ~~ ~ ~ ~ ~~" ~" u (\J~ (JJh W_ !~ ~ ~[;S ~ ~ I ~. ~.~ ! ' Q ~ ;i; ~ ~ g; ~ ~ ~~ ~ ~ t::, ~ ~ U ! ~.~ ~ c, H ~' , :;;: ~~ ~ I H ~ ~.~ ~ ~ i ~.~ ~ ~ ~ .~~ g ~ ~ ..- ..- N u ~. ~. ~ ~ ~" ~ ~ ~ I ~ I n i ~ ~ ~~" !- Ii) 0 (jJ 0 OJ <D '~'~'IIIIIII';;;"~" g; ~ ..- t--. W ..- C":l ..- C":l C\I CO ~ ! ~.~ ~ ' ~ I ~ ~.~ ~. """"""""" ~ ~ ~ ; Q ~.~.~.~~ R:. R:. ~ 05 g !~ ~ gN u:; ~~~. ~_~~. II Q ~ ~ ~-~ ~ ~ 8 ~ ~ ~ ~_R:. ~ ~ ~ w w u ~ ~.~ ~ c, lJ " , ~~ ~ H ~ ~.~ ~ ~ ~. ~-~ ~ S i:r1 ~ N ffi fJ ~ ~! ~ ~ ~ ~~ ~ ~ ~. ~-:! ~ u ~ i ~ g-~ ~ ~j ~ I I I ~ ~. ~ ~ ~ ~ ~ ~ ;; ~. ~. ~. ~ ~ ~ ~ ~ ~-!4v I I :" ~ ~ ~ ~ : , ~ ~ ~. ~. ~ ?J ~ ~ ~II i~ ~ c ~I ~ ~! ~ c .~ ~ to I .c, H ~ ~! ~ :;;: - ~ ~ I ~] ~ I~ ~ u ~ ,~ ~ ~ ~ ~~ ~ ' j ~ I f ~ ~! ~ I ~ ~~ ~ ~~'IIIIII ~ ~ ~ ~~ ~ ~. ~ iI: Rl I ~ ~ ~~ ~ .a ,....:"'" ,.... ~. ~ ~ ~ ~ [ ~ ~ ~ !! ~ :;: .c ~ ~. c;j ~ U m i ~ g- u; ~ l j ~ ~ [ ~~ ~ I~~'IIIIII ~ ~ ~ ~ ~ ~ ~?j.~~-~ H ~ " , '''''''''' , , ~ ~ ~ c j ~ I I I I ~ ~ ~- ~ ~I I ~~ ' I~~'IIIIII ~ ~ ~ ~ ~ ~ ~?j-~~-g ~ ~ I ~ ~ g~ ~ ~~i~~ .~ ~ I 'c, iJ [ ~~ ~ ~~i~~ ~~-~~-~ ~ ~ I ~; ~ !! ;'1; :;: w R. ::: Ii') I T""" <':!. ~ u ~ ~ 0.i ~ ~- ~- ~ N ::;r ~ U m i ~ g- u; ~ l j ~ TABLE F DEVELOPMENT CHARGES 2005 EXEMPTIONS 50% Industrial Enlargement Accessory Building Additional Dwelling Unit(s) in Existing Downtown Exemption Enlargement of Existing Unit(s) Provincial Use Public School Board Redevelopment Allowance Separate School Board Temporary Building 36,500 2,567 16,938 56,627 152,276 30,186 11 ,429 140,338 13,245 4,700 464,806 ~~. ~.~. ~ ~~ ~ ~ ~~ :il ~ ~-~ ~ -g CL "2:-g ~3 ~ ~ ~~ ~] TABLE H DEVELOPMENT CHARGES DEFERRAL AGREEMENTS Betzner Brownstones Senberg Mgmt 555 KinQ St. E. Balance December 31 , 2004 78,676 New deferrals Payments 78,676 Total 78,676 Due date May 15, 2005 78,676 Balance December 31,2005