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HomeMy WebLinkAboutFND-028-098'nergizing Ontario REPORT FINANCE DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: Monday October 19`h, 2009 Resolution #: ~~~"~78-0`~ Report #: FND-028-09 File #: By-law #: Subject: TOWNSHIP OF WOOLWICH'S RESOLUTION FOR REVIEW OF CHAPTER 27, SECTION 5(2) OF THE DEVELOPMENT CHARGES ACT, 1997 Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-028-09 be received; 2. THAT Council endorse the Township of Woolwich's Resolution, Attachment "A", requesting support for a review of the Chapter 27, Section 5(2) of the Development Charges Act, 1997; and 3. That this resolution be forwarded to the Township of Woolwich, the Jim Watson, Minister of Municipal Affairs and Housing, and John O'Toole, MPP. Submitted by: / , ~ ~ ancy Ta r, B.B ., C.A., Director of Finance/Treasurer Reviewed by~ ~`-'~ Franklin Wu, Chief Administrative Officer. NT/LG/hjl REPORT NO.: PAGE 2 BACKGROUND: 1.0 At the meeting held on September 215, 2009, Council referred the correspondence frgm the Township of Woolwich (Attachment "A") to the Finance Department for a r~port. 2.0 The resolution frorr+ Woolwich is requesting that changes be made to development chargies legislation to eliminate the provision that any grant funding be deducted from tN~e eligible portion of the capital costs prior to calculating the developer share. This provision has the effect of "sharing" the benefit of the grant funding with the developers rather than allowing it to be attributed directly to the non-growth and municipal components. 3.0 Eliminating this provision would assist municipalities in funding their share of development charge related projects through application of upper level grants such as Infrastructure Stimulus Fund and Building Canada Fund. Because this provision is in place, often municipalities are reluctant to apply under various stimulus fund programs for growth related projects as they prefer to use the upper level funding,to offset a project that would otherwise be fully funded by the Municipality. By eliminating this provision, there is the potential for more growth related projects to tae undertaken as the municipal source of funding would not be as difficult. RECOMMENDATION: 4.0 -Staff recommends that Council endorse the Township of Woolwich's resolution for the review of Chapter 27, Section 5(2) of the Development Charges Act, 1997, that is attached to this report as Attachment "A". Attachment: Attachment "A" Township of Woolwich's resolution CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET; BOWMANVILLE, ONTARIO L1 C 3A6 T (905)623-3379 F (905)623-4169 Attachment q The Corporation of the Township of Woolwich P.O. Box 158, 24 Church Street West Elmira, Ontario N3B 2Z6 Tel. (519) 669-1647 t Fax: (519) 669-1820 DATE: July 3, 2009 TO: All Ontario Municipalities SUBJECT: Resolution to request support for a review of Chapter 27, Sec, 5(2) of the Development Charges Act 1997 On June 30, 2009, the Council of the Township of Woolwich passed the following resolution and respectfully requests support for this resolution by all municipalities in Ontario: WHEREAS development charges are collected fees. levied on new development to help pay for the infrastructure required to service growth; AND WHEREAS development charges help finance capital projects that would otherwise be financed through property taxes or other means; AND WHEREAS Chapter 27, Section 5 (2) of the Development Charges Act 1997 states that, "The capital costs, determined under paragraph 7 of subsection (1), must be reduced, in accordance with the regulations, to adjust for capital grants, subsidies and other contributions made to a municipality or that the council of the municipality anticipates will be made in respect of the capital costs"; AND WHEREAS municipalities in Ontario have recently been approved for grant funding under the Infrastructure Stimulus Fund and Building Canada Fund for capital works that have development charge components; AND WHEREAS municipalities are unable to collect that development charge component when they receive funding from sources such as the Infrastructure Stimulus Fund and Building Canada Fund; NOW THEREFORE be it resolved that the Council of the Township of Woolwich requests the Ministry of Municipal Affairs to conduct a review of Chapter 27, Section 5 (2) of the Development Charges Act 1997 and make changes that would eliminate the requirement for municipalities to deduct grant funding received from eligible portion of development charges; AND FURTHER that this resolution be forwarded to The Honourable Jim Watson, Minister of Municipal Affairs and Housing; Harold Albrecht, MP Kitchener-Conestoga; Leeanna Pendergast, MPP Kitchener-Conestoga; and to all municipalities in Ontario for support.