FI2014-19 Financing from Development Charge Reserve FundTownship of
Report
.Proud Heritage, Exciting Future
Report No.
To:
Prepared By:
F12014 -19
Council
Paul Gravelle
Meeting Date:
September 3, 2014
Subject: Financing from
Development Charge Reserve
Motion #
CJ
Fund
Roll #:
R.M.S. File #:
Recommendation(s): Requires Action For Information Only
It is recommended that:
1. Report No. F12014 -19 be received and adopted.
2. That the amount of $224,588 be transferred from the development charge
reserve fund to Township reserves as detailed in the said report.
Background:
On August 7th, 2014, Council passed by -.law 2014 -126, being a by -law for the imposition
of development charges. As required by the Development Charges Act, a background
study was completed. The 2014 study identified projects not identified in the 2009
background study that could be financed from the development charges reserve fund.
Analysis:
Projects reflected in the 2014 budget that could have been funded from development
charges are as follows.
- Debenture payments - Road Pavinq
The paving of gravel roads was identified in the 2009 development charge background
study as having a potential development charge recoverable cost. These projects were
financed from debenture borrowing. However, a portion of the subsequent annual
debenture payments could have been financed from development charges. In 2014, a
portion of the debenture payments could have been financed from development
charges. The 2014 budget reflects debenture payments totaling $1,083,931 being
funded from the tax levy. $162,588 of the debenture payments could have been
financed from the development charge reserve fund.
Finance September 3, 2014
Report No. F12014 -19 Page 1 of 3
If the 2014 budget had reflected partial financing of debenture payments from the
development charge reserve fund, there would have been additional funds available to
finance road construction projects.
As such, we would recommend that $162,588 be transferred from the development
charges reserve fund to the infrastructure renewal reserve to finance additional road
construction projects.
Bi- directional Tractor
This 2014 project was financed from the budget stabilization reserve. While this
equipment was not reflected in the 2009 background study, it is reflected in the 2014
background study and that a portion of the cost of this equipment is growth related.
$62,000 of the budgeted cost of $155,000 could have been financed from the
development charges reserve fund or 40 %. The actual cost incurred was $143,203.17.
As such, we would recommend that $57,281.27, being 40% of the actual cost, be
transferred from the development charge reserve fund to the budget stabilization
reserve.
Financial / Legal Implications / Risk Management:
As discussed above
Policies /Legislation:
Development Charges Act
Corporate Strategic Goals:
Sustainability
Financial Stewardship
Consultations:
Development Charge Background Study prepared by Watson & Associates Economists
Ltd.
Attachments:
None
Finance September 3, 2014
Report No. F12014 -19 Page 2 of 3
Conclusion:
A total amount of $224,588 should be transferred from the development charges
reserve fund in relation to 2014 projects that could have been fully or partially funded
from development charges.
Respectfully submitted:
Paul Gravelle
Director of Finance
SMT Approval / Comments:
C.A.O. Approval / Comments:
Finance September 3, 2014
Report No. F12014 -19 Page 3 of 3