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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.