HomeMy WebLinkAboutFSD-011-25Staff Report
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Report To: General Government Committee
Date of Meeting: April 7, 2025 Report Number: FSD-011-25
Authored by: Michelle Pick, Accounting Services Manager, Deputy Treasurer
Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology
Reviewed By: Mary-Anne Dempster, CAO
By-law Number: Resolution Number:
File Number:
Report Subject: 2024 Annual Statement of Development Charges, Cash-in-Lieu - Parkland
and Building Permit Reserve Funds
Recommendation:
1.That Report FSD-011-25, and any related delegations or communication items, be
received for information.
Municipality of Clarington Page 2
Report FSD-011-25
Report Overview
This report is prepared to comply with the reporting requirements of the Development
Charges Act, 1997, Planning Act, 1990 and Building Code Act.
1. Background
1.1 The Municipality is required through various acts and regulations to report annually to
Council on the reserve funds established for Development Charges, Cash -in-Lieu of
Parkland and Building Permits.
1.2 Prior to 2025, these reports were separate. As they are mainly informational, and to
streamline processes starting with the 2024 annual reporting period they will be
consolidated into one report.
2. Development Charges
General
2.1 In accordance with the Development Charges Act, 1997, section 43 the Treasurer is
required to report to Council on financial information related to the development charges
by-law and reserve funds.
2024 Annual Report
2.2 Attachment 1 - Schedule A - attached shows the activity in the Development Charges
Reserve Funds for the year ended December 31, 2024, including opening and closing
balances.
2.3 Attachment 2 - Schedule B - attached shows capital projects which were funded for the
year ended December 31, 2024, with development charges. The table shows the total
expenses, development charge financing and non-development charge financing.
2.4 Attachment 3 - Schedule C - attached shows operating expenses which were funded for
the year ended December 31, 2024, with development charges. The table shows the
total expenses, development charge financing and non-development charge financing.
2.5 Attachment 4 - Schedule D - attached shows projects which have been previously
approved by Council through resolution or prior years’ budgets. The amount committed
relates solely to the development charges portion.
2.6 This statement is compliant with subsection 59.1(1) of the Development Charges Act,
1997.
Municipality of Clarington Page 3
Report FSD-011-25
2.7 A total of 23 capital fund (2023 – 26) and 11 (2023 – 8) operating fund projects have
been financed by development charges.
2.8 The Municipality collected $3,720,274 in municipal development charges in 2024, this
compares to $7,052,175 in 2023.
2.9 On January 18, 2021, Council passed by-law 2021-010, approving the Municipality’s
Draft Development Charges Background Study, October 15, 2020 and the Addendum to
the Development Charges Background Study, November 3, 2020 prepared by Watson
& Associates Economists Ltd. The by-law came into force on January 19, 2021, and will
expire five years after that date.
3. Cash-in-Lieu of Parkland
General
3.1 In accordance with Section 37 (Increased Density) and Section 42 (Cash-in-Lieu of
Parkland) of the Planning Act, the Treasurer must 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.
Section 42 – Conveyance of Land for Park Purposes
3.2 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 .
3.3 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.
3.4 Attachment 5 details the Statement of the Treasurer, in compliance with the Act and
provides the expected future commitments for the reserve fund.
Section 37 – Increased Density
3.5 Clarington does not currently have a program set up for Section 37 Community
Benefits; therefore, an annual statement is not required. The current Official Plan
includes Community Benefits policies (Section 23.14 of the OP). Staff are developing a
Community Benefits Charge Strategy and By-law in conjunction with the 2025
Development Charge Background Study update. The new Community Benefits Charge
Municipality of Clarington Page 4
Report FSD-011-25
Strategy will be brought forward for Council approval in June 2025, with an esti mated
implementation date of July 1, 2025.
4. Building Permits
General
4.1 Under the Building Code Act, 1992 and the passing of subsequent amendments and
Ontario Regulation 350/06, municipalities are required to prepare an annual report that
records the amount of building permit fees collected and the costs incurred during the
process.
4.2 In accordance with the Building Code Act, 1992 as amended, staff have prepared this
report to Council with the required content on an informational basis and this report and
the related attachment will be posted on the Municipality’s website.
2024 Annual Report
4.3 A Building Permit Fee Update Study was completed in 2024, by Hemson Consulting
Ltd. with an effective date of March 1, 2024. The reviews are to be completed every five
(5) years to ensure that the building permit fees are in line with the cost of building
inspections and that all appropriate direct and indirect costs are being allocated.
4.4 In 2024, building permits issued generated total building permit revenue of $2,107,333
(2023 - $2,149,337), with total direct and overhead costs of $3,653,705 (2023 -
$3,485,770), creating a deficit of $1,546,372 (2023 – deficit of $1,336,433) after
reducing the total revenue by the direct and indirect expenses as outlined on
Attachment 6.
4.5 As the building permit funds are to be segregated from the general funds of the
Municipality, the deficit of $1,546,372 was transferred from the Building Division
Reserve Fund leaving the surplus/deficit for December 31, 2024, as nil. As of December
31, 2024, the reserve fund was in a deficit position of $1,030,257.
5. Financial Considerations
Not Applicable.
6. Strategic Plan
Not Applicable
Municipality of Clarington Page 5
Report FSD-011-25
7. Climate Change
Not Applicable.
8. Concurrence
Not Applicable.
9. Conclusion
It is respectfully recommended that the Annual Statement for the Development Charges
Reserve Funds, Annual Statement for Cash-in-Lieu of Parkland and Annual Building
Permit Fess report be received for information and made available to the public by
posting on the Municipality’s website.
Staff Contact: Michelle Pick, Accounting Services Manager/Deputy Treasurer, 905-623-3379
x2605 or mpick@clarington.net.
Attachments:
Attachment 1 – Schedule A – Development Charges Reserve Funds Activity 2024
Attachment 2 – Schedule B - Development Charges Reserve Funds Capital Projects 2024
Attachment 3 – Schedule C - Development Charges Reserve Funds Operating Expenses 2024
Attachment 4 – Schedule D - Development Charges Reserve Funds Commitments 2024
Attachment 5 – Cash-In-Lieu of Parkland Reserve Fund 2024
Attachment 6 – Annual Building Permit Fees 2024
Interested Parties:
There are no interested parties to be notified of Council's decision.
Municipality of Clarington Attachment 1 - Report FSD-011-25
Development Charges Reserve Funds Statement Schedule A
For the 2024 Year
Growth Studies Library Services
Fire Protection
Services
Parks &
Recreation
Services
Services Related
to Highways Total
Balance as of December 31, 2023 (2,006,847)$ (2,058,539)$ (7,599,298)$ (7,604,437)$ (44,948,268)$ (64,217,389)$
Plus:
Development Charge Proceeds (50,395) (110,612) (90,126) (843,848) (2,625,293) (3,720,274)
Development Charge Incentives -
Accrued Interest Apportionment (168,530) (150,103) (634,620) (537,989) (4,132,455) (5,623,697)
Transfer from Revenue Fund -
Transfer from Capital Fund -
Subtotal (218,925) (260,715) (724,746) (1,381,837) (6,757,748) (9,343,971)
Less:
Amount Transferred to Capital Fund * 276,412 542,633 2,028,118 1,653,070 4,500,233
Amount Transferred to Operating Fund** 147,650 78,511 1,340,050 533,240 2,099,451
Amount Transferred between Reserve Funds (34,841) (88,443) (1,132,413) (1,216,768) (2,472,465)
Subtotal 112,809 354,923 454,190 2,235,755 969,542 4,127,219
Closing Balance as of December 31, 2024 (2,112,963) (1,964,331) (7,869,854) (6,750,519) (50,736,474) (69,434,141)
Committed Amounts from Prior Years *** 1,731,700 - 2,504,763 2,128,446 13,487,109 19,852,018
Available at December 31, 2024 (381,263) (1,964,331) (5,365,091) (4,622,073) (37,249,365) (49,582,123)
Committed Amounts from 2025 Budget **** 81,244 4,056,100 799,422 4,936,766
Balance Available for Future Needs (381,263)$ (1,883,087)$ (5,365,091)$ (565,973)$ (36,449,943)$ (44,645,357)$
* See Schedule B Total Development Charges collected on behalf of the Region in 2024 8,904,462$
** See Schedule C Less: amounts paid to the Region 2024 8,904,462$
*** See Schedule D Total Development Charges due to the Region at December 31, 2024 -
**** 2025 Budget (includes 2025 debenture payments)
Note: brackets = funds available, no brackets = shortfall
Municipality of Clarington Attachment 2 - Report FSD-011-25
Development Charges Reserve Funds Statement Schedule B
For the 2024 Year
Capital Fund Expenses
Total Expenses
for 2024
D/C RF
Financing
Non D/C
Financing Non-DC Funding Sources
D/C - Library Services
Library Collections 2024 276,412 276,412
276,412$ 276,412$ -$
D/C - Fire Protection Services
Station #1 Expansion 196,764 196,764
Tankers 2025 1,383,476 345,869 1,037,607 Corporate Fleet Capital RF
1,580,240$ 542,633$ 1,037,607$
D/C - Parks & Rec Services
North Bowmanville Dog Park 18,866 18,866
Soper Creek Trail - Phase 3 & Outdoor Fitness Equipment 395,927 395,927
Foster Creek Neighbourhood Park West 5,597 5,597
Newtonville Estates Parkette 13,363 13,363
Northglen East Park 1,051,127 1,051,127
SCA Tennis Courts 543,238 543,238
2,028,118$ 2,028,118$ -$
D/C - Service Related to Highways
New Operations Center 567,142 567,142
Active Transportaion Masterplan 119,600 70,000 49,600 Infrastructure Canada Grant
RR17 Sidewalk (Mill St - CPR Eastside) 46,902 46,902
Sidewalk - North Street (George St to Remi Court) 151 151
Port Darlington Subdivision 148,038 148,038
Green Rd Roundabouts (Boswell Dr/Clarington Blvd) 103,227 103,227
Hancock Rd (Hwy2 to Nash Rd) 18,136 13,994 4,142 Municipal Capital Works
North Scugog Crt Surface Asphalt (Dan Sheehan ln to W Scugog Lane) 73,594 65,665 7,929 Municipal Capital Works
Bowmanville Cemetery Expansion - Design 32,914 29,622 3,292 Municipal Capital Works
Storm Water Management Pond 186 186
Streetscape Newcastle Improvements 516 136 380 Municipal Capital Works
New Equipment Purchase - Roads 2022 8,325 5,516 2,809 Municipal Capital Works
New Equipment Purchase - Roads 2024 37,649 37,649
Baseline Road Reconstruction (Trulls Rd to Courtice Rd) 600,897 564,842 36,055 Municipal Capital Works
1,757,277$ 1,653,070$ 104,207$
Total Capital Expenses 3,337,517$ 4,500,233$ 1,141,814$
Summary of Financing:276,412 D/C - Library Services
542,633 D/C - Fire Protection Services
2,028,118 D/C - Parks and Recreation Services
1,653,070 D/C - Service Related to Highways
1,037,607 Corporate Fleet Capital RF
49,600 Infrastructure Canada Grant
54,607 Municipal Capital Works
Total Financing 3,337,517$ 4,500,233$ 1,141,814$
Municipality of Clarington Attachment 3 - Report FSD-011-25
Development Charges Reserve Funds Statement Schedule C
For the 2024 Year
Operating Fund Expenses
Total Expenses
for 2024
D/C R/F
Financing
Non D/C
Financing Description
D/C - Growth Studies
Planning Studies-Tooley Robinson Subwatershed Study 113,399 10,788 1,199 Secondary Plan Reserve
56,561 Recoverable from Developer
44,851 Tax Levy
Planning Studies-Bow East Town Ctre Sec Plan 24,918 2,428 270 Secondary Plan Reserve
3,145 Recoverable from Developer
19,075
Streamline Development Approvals
Fund (SDAF)
Planning Studies - Bow West Urban Ctre Sec Plan 3,991 1,996 1,995 Secondary Plan Reserve
Planning Studies - Energy Park Sec Plan 84,527 70,177 14,350 Recoverable from Developer
Planning Studies - Courtice TOC Sec Plan 99,236 35,357 23,167 Secondary Plan Reserve
40,712 Recoverable from Developer
Legislative Services - OP Appeal Legal Costs 26,904 26,904
352,975$ 147,650$ 205,325$
D/C - Library Services
DC Library Services Budget commitments - Courtice Library Debenture 78,511 78,511
78,511$ 78,511$
D/C - Parks and Recreation Services
DC Parks and Rec Services Budget commitment - 75% Recreation Study 174,544 130,908 43,636 25% Tax Levy
DC Parks and Rec Services Budget commitments - South Bowmanville Recreation Center 1,517,398 1,062,178 455,220 10% Tax Levy
DC Parks and Rec Services Budget commitments - BIS Debenture 163,293 146,964 16,329 10% Debt Retirement
1,855,235$ 1,340,050$ 515,185$
D/C - Service Related to Highways
DC Service Related to Highways Budget commitment - Green Road Debenture 533,240 533,240 -
533,240$ 533,240$ -$
Total Operating Fund Expenses 2,819,961$ 2,099,451$ 720,510$
Summary of Financing:147,650 D/C - Growth Studies
78,511 D/C Library Services
1,340,050 D/C Parks and Recreation Services
533,240 D/C Service Related to Highways
26,631 Secondary Plan Reserve
114,768 Recoverable from Developer
19,075
Streamline Development Approvals
Fund (SDAF)
543,707 Tax Levy
16,329 Debt Retirement
Total Financing 2,819,961$ 2,099,451$ 720,510$
Municipality of Clarington Attachment 4 - Report FSD-011-25
Development Charges Reserve Funds Statement Schedule D
For the 2024 Year
Committed Amounts From Prior Years' Budgets and Council Approvals
Year Project Description
Amount
Committed
D/C - Growth Studies
2012 Operating Planning studies-Technology & Planning/Review project 27,686
2015 Operating Planning studies-zoning bylaw review-90% DC [10% Prof fees Res tax levy] 108,641
2017 Council Secondary Plan Agreement template [10% tax levy] 18,000
2017 Operating Planning Studies-Bow West Secondary Plan 8,408
2019 Operating DC Study 7,966
2019 Operating OP Appeal Legal Costs 44,176
2019 Operating Planning Studies 144,000
2020 Operating DC GG Budget commitments - Plan Studies 1,233,000
2022 Operating Courtice Waterfront Design Study 49,823
2023 Operating DC GG Budget commitments - DC Study 90,000
Total Commitments - Growth Studies:1,731,700$
D/C - Library Services
Total Commitments - Library Services:-$
D/C - Fire Protection Services
2023 Capital 2023 Rescue Truck 1,000,000
2023 Capital 2023 Fire HQ Expansion 1,504,763
Total Commitments - Fire Protection:2,504,763$
D/C - Parks and Recreation Services
2020 Operating Consulting Parks Design 13,500
2021 Capital Newtonville Estates Parkette 236,638
2021 Capital North Bowmanville Dog Park 194,247
FSD-047-21 Toyota Trail 118,794
2022 Capital Brookhill Parkette 68,334
2023 Capital Newtonville Estates Parkette 100,000
2023 Capital Soper Creek Trail - Phase 3 90,030
2023 Capital Farewell Creek Trail Phase 2B 100,000
2024 Council Approved Bowmanville Zoo Lands Trails-Phase 1 1,112,500
2024 Capital Foster Creek Neighbourhood Park West 94,403
Total Commitments - Parks and Recreation Services:2,128,446$
D/C - Services Related to Highways
2014 Capital Brookhill Blvd Oversizing 310,000
2015 Capital Sidewalk-Rudell Rd (Sunset Blvd to Hart) 43,000
2016 Capital Middle Rd reconstruction (Con Rd 3 to urban limit) 53,230
2018 Capital Street lighting - RR57 (Hwy2 to 150m N of Stevens Rd) 15,792
2018 Capital Darlington Blvd (South limit to Hwy2) 54,018
2018 Capital Green Rd (Harvey Jones to Ross Wright) 70,890
2018 Capital King St Cycling Facility 114,928
Page 1 of 3
Municipality of Clarington Attachment 4 - Report FSD-011-25
Development Charges Reserve Funds Statement Schedule D
For the 2024 Year
Committed Amounts From Prior Years' Budgets and Council Approvals
Year Project Description
Amount
Committed
2018 Capital Sidewalk - RR 57 Multi-use Trail - Aspen Springs to Hwy2) 15,000
2018 Memo Port Darlington subdivision Rd (Port Darlington to east) 1,406
2018 Operating 50% North Newc Drainage Study 11,500
2018 Operating Eng - design 21,141
2019 Capital Middle Rd reconstruction (Con Rd 3 to urban limit) 186,750
2019 Capital Baseline Rd Reconstruction (Haines to Lambs Rd) 68,980
2019 Capital Baseline Rd Reconstruction (Mearns to Haines) 63,240
2019 Capital Baseline Rd Structure ( W of Green Rd ) 22,120
2019 Capital Hancock Rd Box Culvert (S of Nash rd) 55,450
2019 Capital Lambs Rd Interchange @ Hwy 401 - Environmental Assessment 72,311
2019 Capital Baseline Rd Reconstruction (Trulls Rd to Courtice Rd) 632,291
2019 Operating Eng - design 72,500
2019 Operating 50 % North Newc Drainage Study 11,500
2020 Capital Streetlighting - Hwy#2 to 150m N of Stevens Rd 228,000
2020 Capital Rudell Rd Reconstruction 981,076
2020 Capital Sidewalk - Hwy#2 ( E of Clarington Blvd to RR57) South Side 135,000
2020 Capital Sidewalk - Bloor St (Townline Rd S to 415m Easterly) South Side 30,000
2020 Capital Sidewalk - RR17 (Mill St to CPR) East Side 182,026
2020 Capital Sidewalk - North Str (George St to Remi Court) 24,471
2020 Capital Sidewalk - Trulls Rd (Avondale Rd to Hwy#2) East Side 30,000
2020 Capital Sidewalk - RR57 Multi-use Trail - CPR Bridge to Stevens Rd 82,500
2020 Capital SWM Pond - Technology Park 1,594,828
2020 Operating Eng - design 75,000
2020 Capital Bowmanville Cemetery expansion - design & construction 106,384
CL2016-17 Pavement Rehabilitation -Green Road cycling lanes [DC -project #25] - trsf UECF from Trulls Rd 12,003
PO#10021 CIMA-Clarington Ponds/Clarnew, Newc & WestSide, Bow [50% Prof fees tax levy] 5,068
PO#8394 Eng - design - CIMA/Longworth Ave W. EA [50% Prof Fees Res] 446
2021 Capital Darlington Blvd (South limit to Hwy2) 1,183,488
2021 Capital Green Rd (Harvey Jones to Longworth) 375,345
2021 Capital Various Erosion Protection Works 10,042
Trsf from RR57 Multi Use Trail King St Cycling Facility 37,500
2022 Capital Green Rd Roundabout 52,055
2022 Capital Hancock Rd ( Hwy#2 to Nash Rd) 47,458
2022 Capital Nash Rd ( 50m E of Harryt Gay Dr to Hancock Rd) 63,288
2022 Capital Bowmanville Ave MUP 454,496
2022 Capital Bowmanville Ave Sidewalk 210,000
2022 Capital Liberty St Sidewalk ( Longworth to Conc Rd 3) 330,000
2022 Capital Prestonvale Sidewalk (230m N to Bloor St) 80,000
2022 Capital Hancock Rd Sidwalk (Hwy#2 to 275 m S of Nash Rd) West Side 36,500
Page 2 of 3
Municipality of Clarington Attachment 4 - Report FSD-011-25
Development Charges Reserve Funds Statement Schedule D
For the 2024 Year
Committed Amounts From Prior Years' Budgets and Council Approvals
Year Project Description
Amount
Committed
2022 Capital Streetscape - Newcastle 207,104
2022 Capital Various Erosion Protection Works 133,340
2022 Capital 2022 Fleet New Roads 220,577
2022 Capital 2022 Fleet New Parks 16,003
Add'l Funding PSD-018-22 Bowmanville Cemetery expansion - design & construction 22,657
2023 Capital 2023 - Fleet New - Roads 905,506
2023 Capital 2023 - New Operations Centre 156,400
2023 Capital 2023 - Streetlighting - Haines St to Bennet Rd 20,000
2023 Capital 2023 - Streetlighting - Hwy 35 to Fire Hall 20,000
2023 Capital 2023 - Longworth Ave. Extension EA (Green Rd to Holt Rd) 200,000
2023 Capital 2023 - Sidewalks - Baseline Rd MUP (Spicer Sq to Bowmanville Ave) 50,000
2023 Capital 2023 - Newcastle Streetscape Improvements - Phase 1 60,000
2023 Capital 2023 - Various Erosion Protection Works 133,340
2024 Capital 2024 - Fleet New Roads 1,029,361
2024 Capital 2024 - Fleet New Parks 383,800
2024 Capital 2024 - Streetlighting Bowmanville Ave Baseline Rd to CPR Bridge 743,000
2024 Capital 2024 - Concession Rd 3 (Liberty St to 110m East) 107,000
2024 Capital 2024 - Baseline Rd Improvements (Means Ave to Lambs) 274,000
2024 Capital 2024 - Liberty St Cycle Track & Sidewalk (Longworth Ave to Conc 3) 42,000
2024 Capital 2024 - Stormwater Mgmt Facility - Clarington Tech Business Park 500,000
Total Commitments - Services Related to Highways:13,487,109$
Total Commitments - Development Charges Reserve Funds:19,852,018$
Page 3 of 3
Attachment 5 to Report FSD-011-25
Municipality of Clarington
Cash-in-lieu of Parkland Reserve Fund
For the Year Ended December 31, 2024
Balance as of December 31, 2023 $8,173,177
Plus:
2024 Cash-in-lieu Collected 813,191
2024 Reserve Fund Interest 265,271
2024 Amount Transferred from Capital Fund – Land
Acquisition -
Less:
2024 Amount Transferred to Capital Fund – Land Acquisition -
Closing Balance as of December 31, 2024 $9,251,639
Committed Amounts 4,903,900
Available Balance as at December 31, 2024 $4,347,739
Municipality of Clarington
Cash-in-lieu of Parkland Reserve Fund – Committed Amounts
For the Year Ended December 31, 2024
Project Description Period
Amount
Committed
Ward 3 – Park development/acquisition – East
Bowmanville 2025-2030 4,903,900
Total Commitments 4,903,900
Attachment 6 to Report FSD-011 -25
Municipality of Clarington
Building Permit Fee Report
December 31, 2024
2024 Actual
Building Permit Fees Revenue $ 2,107,333
Transfer from Reserve Fund 1,546,372
Total Revenue $ 3,653,705
Direct costs (Note 1)
Payroll 2,750,403
Office Space 80,786
Other Operating and Capital Costs 259,427
Subtotal Direct Costs $ 3,090,616
Overhead Costs (Note 2) 563,089
Total Costs $ 3,653,705
Revenue (Under) / Over Expenditures -
Note 1 - Direct costs are deemed to include the costs of the Building Division for the
processing of building permit applications, the review of building plans, conducting
inspections and building-related enforcement duties. Direct costs also include costs
from Public Works, Legislative Services, Fire and Emergency Services and Planning
and Infrastructure Services which can be directly attributed to the building permit
function.
Note 2 - Overhead or Indirect costs are deemed to include the costs for support and
overhead services to the Building Division.