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Report
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Report To: General Government Committee
Date of Meeting: May 28, 2018
Report Number: FND-009-18 Resolution: GG -327-18
File Number: By-law Number:
Report Subject: 2017 Annual Statement for Cash in Lieu of Parkland Reserve Fund
Recommendation:
That Report FND-009-18 be received for information.
Municipality of Clarington
Report FND-009-18
Report Overview
Page 2
This report complies with amendments to the Planning Act R.S.O. 1990 c.P.13 which
became effective in 2016. The Smart Growth for Our Communities Act 2015 (Bill 73) now
requires reporting on Section 37 (Increased Density) and Section 42 (Conveyance of land for
park purposes). This report discloses the annual activity in the Parkland Cash -in -Lieu
Reserve Fund for 2017. There is nothing to report for increased density funds at this time.
1. Background
1.1 In accordance with the Planning Act, as amended through Bill 73, The Smart Growth for
Our Communities Act, 2015. Section 37 (Increased Density) and Section 42 (Cash -in -lieu
of parkland) of the Planning Act requires the Treasurer to provide a financial statement
including opening and closing balances to Council relating to cash -in -lieu of parkland
monies and increased density funding. This statement must be made available to the
public.
2. Section 42 (Conveyance of land for park purposes)
2.1 Under section 42 of the Planning Act, a municipality may require, as a condition of
development, that land be conveyed to the municipality for park or other public
recreational purposes. In certain circumstances, Council may require a payment in lieu of
land dedication, to the value of the land otherwise required to be conveyed.
2.2 These funds must be held in a special account (Reserve Fund), allocated interest and
spent only for the acquisition of land to be used for park or other recreational purposes
including the erection, improvement or repair of buildings and the acquisition of
machinery, particular to park purposes.
2.3 Attachment #1 details the Statement of the Treasurer, in compliance with the Act.
2.4 In 2017, the Municipality realigned its investment holdings between Development Charge
and Non -Development Charge Reserve Funds. This resulted in certain investments
being moved into the DC Reserve Fund. The accrued interest in 2016 took into account
these investments and therefore overstated the interest for this fund in 2016 and
understated the interest in the DC Reserve Funds for investments that had not yet
matured. In 2017 the interest "expense" is the recognition of the overstatement of
interest in the prior years. Going forward interest will be earned on this Reserve Fund at
the appropriate rate of return.
3. Section 37 (Increased Density)
3.1 Clarington does not currently have a program set up for Section 37; therefore an annual
statement is not required. The Official Plan has a section on "community benefits"
(Section 37) but Clarington does not have a market that would make this provision useful
Municipality of Clarington Page 3
Report FND-009-18
at this time. The Official Plan provision is in place to allow Clarington to consider this
opportunity in the future. As a result, there is no Statement of the Treasurer required.
4. Concurrence
Not Applicable
5. Conclusion
It is respectfully recommended that this report, as required by Section 42 of The Planning
Act, R.S.O., 1990, c.P. 13, as a result of the changes made to the Planning Act in
accordance with The Smart Growth for Our Communities Act be received for information
and be made available to the public by posting on the Municipality's website.
6. Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
Submitted by. Reviewed by:
Nancy Tayjor,4BA,. CPA, CA, Andrew C. Allison, B. Comm, LLB
Director of Finance/Treasurer CAO
Staff Contact: Nancy Taylor, Director of Finance/Treasurer, 905-623-3379 ext. 2604 or
ntaylor@clarington.net
There are no interested parties to be notified of Council's decision.
Attachments:
Attachment 1: Cash -in -lieu of Parkland Reserve Fund
Attachment 1 to
Report FND-009-18
Municipality of Clarington
Cash -in -lieu of Parkland Reserve Fund
For the Year Ended December 31, 2017
Parkland R/F
(504)
Balance as of December 31, 2016
(1,168,947)
Plus:
Cash -in -lieu Collected in 2017
2017 Reserve Fund Interest
(1,029,398)
148
Subtotal
(1,029,250)
Closing Balance as of December 31, 2017
(2,198,198)
Committed Amounts from Prior Years
-
Available at December 31, 2017
(2,198,198)