2. TREASURER’S STATEMENTS ON DEVELOPMENT CHARGES FOR 2007 AND 2008

COMMUNICATION DE LA TRÉSORIÈRE DE LA VILLE SUR LES REDEVANCES D’AMÉNAGEMENT DE 2007 ET 2008

Committee recommendation

That Council receive this report for information.

Recommandation DU Comité

Que le Conseil reçoive le présent rapport à titre d’information.

Documentation

1. Councillor Bédard’s report dated 12 February 2009 (ACS2009-CMR-FIN-0007).

2. Extract of Draft Minute, 14 April 2009.

Report to/Rapport au :

Planning and Environment Committee

Comité de l'urbanisme et de l'environnement

and Council / et au Conseil

25 March 2009 / le 25 mars 2009

Submitted by/Soumis par : Marian Simulik, City Treasurer/Trésorière municipale

Contact Person/Personne ressource : Marian Simulik, City Treasurer/Trésorière municipale

Financial Services/Services financiers

(613) 580-2424 x14159, Marian.Simulik@ottawa.ca

City Wide / à l’échelle de la Ville

Ref N°: ACS2009-CMR-FIN-0007

SUBJECT:	TREASURER’S STATEMENTS ON DEVELOPMENT CHARGES FOR 2007 AND 2008

OBJET :	COMMUNICATION DE LA TRÉSORIÈRE DE LA VILLE SUR LES REDEVANCES D’AMÉNAGEMENT DE 2007 ET 2008

REPORT RECOMMENDATION

That the Planning and Environment Committee and Council receive this report for information.

RECOMMANDATION DU RAPPORT

Que le Comité de l’urbanisme et de l’environnement et le Conseil prennent connaissance du présent rapport.

BACKGROUND

Section 43 of the Development Charges Act, 1997 (DCA) requires that the City Treasurer submit financial statements regarding development charge fund activity to Council and the Ministry of Municipal Affairs and Housing. The attached statements of Development Charge Reserve Fund Activity, provided as Documents 1 and 2, include opening and closing account balances, descriptions of the category of services covered, and a summary of the financial transactions for the years 2007 and 2008.

DISCUSSION

Development charges are one-time fees collected on new residential and non-residential properties to finance a portion of the capital infrastructure requirements associated with growth. Amounts collected are held in the appropriate reserve fund and accumulate interest. The growth-related spending authority is approved annually as part of the City’s capital budgeting process with only those capital projects included in the current background study being eligible for development charge funding.

The statements provide a summary of the financial activity of the various reserve funds for the years ending December 31, 2007 and 2008. Revenues consist of contributions collected from developers at building permit issuance, plus interest earned in the fiscal year. Transfers are made in accordance with the City’s 2004 background study in support of by-law 2004-298 and the area-specific stormwater management development charge by-laws. The unapplied project funding represents the outstanding balance of commitments that have to be allocated to active capital projects.

Account balances are continually monitored through the annual capital budget approval process to ensure they remain consistent with the overall funding policies adopted by Council. Interest earnings have been adjusted in 2008 to take into account the carrying charges associated with those growth-related capital projects requiring the application of debt financing in the future.

CONSULTATION

The preparation of the attachments is a legislative requirement and no public consultation has been undertaken.

LEGAL/RISK MANAGEMENT IMPLICATIONS:

There are no Legal/Risk Management impediments in receiving the information contained in this Report.

FINANCIAL IMPLICATIONS

The Development Charges Act includes a requirement that a yearly Treasurer’s Statement be prepared for Council prior to submitting to the Ministry of Municipal Affairs and Housing.

SUPPORTING DOCUMENTATION

Document 1 – 2007 Treasurer’s Statement – Development Charge Reserve Fund Activity

Document 2 – 2008 Treasurer’s Statement – Development Charge Reserve Fund Activity

DISPOSITION

In accordance with the Development Charge Act, a copy of the Treasurer’s Statements will be provided to the Minister of Municipal Affairs and Housing. This statement will be presented at the next City of Ottawa/Greater Ottawa Home Builder’s Association Liaison Committee meeting.