DOCUMENT 1
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4. TREASURER'S
STATEMENT ON DEVELOPMENT CHARGES RESERVE FUNDS FOR 2010 COMMUNICATION DE
LA TRÉSORIÈRE DE LA VILLE SUR LES REDEVANCES D’AMÉNAGEMENT DE 2010 |
Committee recommendation
That Council receive this report for
information as required by the Development Charges Act, 1997, Section 43.
Recommandation du comité
Que le Conseil prenne connaissance du présent rapport en vertu de la Loi
de 1997 sur les redevances d’aménagement, paragraphe 43.
Documentation
1.
Deputy
City Manager's report, Infrastructure
Services and Community Sustainability, dated 11 April 2011 (ACS2011-CMR-FIN-0023)
Planning Committee
Comité de l’urbanisme
and Council / et au Conseil
11 April 2011 / le 11 avril 2011
Submitted by/Soumis par : Marian Simulik, City Treasurer/Trésorière
municipale
Contact
Person/Personne ressource : Gary Baker, Program Coordinator, Development
Charges /Coordonnateur, Coordonnateur de programme, Redevances
d’aménagement
Planning
and Growth Management /Urbanisme
et Gestion de la croissance
613-580-2424
ext./poste 27406, Gary.Baker@ottawa.ca
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Ref N°: ACS2011-CMR-FIN-0023 |
SUBJECT:
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TREASURER'S STATEMENT ON DEVELOPMENT CHARGES ReSERVE FUNDS FOR
2010 |
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OBJET :
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COMMUNICATION DE LA TRÉSORIÈRE DE
LA VILLE SUR LES REDEVANCES D’AMÉNAGEMENT DE 2010 |
That the Planning Committee and Council receive this report for information as required by the Development Charges Act, 1997, Section 43.
Que le Comité de l’urbanisme et le Conseil prennent connaissance du présent rapport en vertu de la Loi de 1997 sur les redevances d’aménagement, paragraphe 43.
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 Summary Statement of Development Charges Reserve Funds activity, provided as Document 1, includes opening and closing account balances, descriptions of the category of services covered and a summary of the financial transactions for the year 2010.
Development charges are one-time fees collected on new residential and non-residential properties to provide a non-ratepayer source of revenue to fund a portion of the growth-related capital infrastructure requirements. The City collects the fee at the time the building permit is issued. Growth-related spending authority is approved annually as part of the City’s budgeting process with only those capital projects included in the current background study being eligible for development charge funding.
The attached statement provides a summary of financial activity in various reserve funds for the year ending December 31, 2010. Revenues consist of development charges collected from developers plus interest earned during the fiscal year. Transfers to capital projects are made in accordance with the City’s 2009 background study for by-law 2009-116 and various area-specific stormwater management development charge by-laws. Project funding requirements that are not yet applied represent the outstanding balance of commitments for active capital projects. Regulations stipulate that obligatory fund revenue such as development charges be recognized only when expenditures are incurred. Annual adjustments are made to capital projects to reflect the funding portion to be transferred and are based on actual expenditures. Closing reserve fund balances represent the development charge revenue available to fund future growth-related capital works.
Account balances are monitored annually through the capital budget approval process to ensure they remain consistent with the overall funding policies adopted by Council. In some instances, a specific reserve fund may have a negative account balance resulting from overall capital project transfers being greater than revenues collected to date. Over commitments such as these are recovered over the 22-year Official Plan timeframe and they provide flexibility in ensuring that upfront infrastructure services are in place so that development can proceed. Reserve funds also form part of the legislatively mandated re-examination process which takes place every five years. Due to the manner in which development charges are collected, 2010 interest earnings have been adjusted to account for the carrying costs of growth-related capital projects that require future debt financing.
N/A
Preparation of the attached document is a legislative requirement; no public consultation is required.
N/A
There are no Legal/Risk Management impediments in receiving the information contained in this Report.
N/A
N/A
The DCA requires that a yearly Treasurer’s Statement be prepared for Council prior to submission to the Ministry of Municipal Affairs and Housing.
Document 1 – Summary Statement of Development Charges Reserve Funds
In accordance with the DCA, a copy of the Treasurer’s Statements will be provided to the Minister of Municipal Affairs and Housing
.
DOCUMENT 1