HomeMy WebLinkAboutTR-100-91 THE CORPORATION OF THE TOWN OF NEWCASTLE
REPORT
Meeting: GENERAL PURPOSE & ADMINISTRATION COMMITTEE File#
Date: November 18, 1991 Res. #
Report#: TR-100-911--iie#: By-Law. #
Subject:
DEVELOPMENT CHARGES COLLECTION
ON BEHALF OF REGION OF DURHAM
Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. That report TR-100-91 be received,
2 . That Staff be authorized to collect Development Charges on
behalf of the Region of Durham in accordance with the
Development Charges Act,
3 . That the funds received on behalf of the Region of Durham be
remitted to the Region in accordance with the Development
Charges Act and the procedures to be set out by the Region
of Durham,
4 . That the Town of Newcastle accept only cash or certified
cheques as payment for Development Charge Levies .
5 . That any interest generated from the funds collected,
accrue to the Town's general fund,
6 . That the Town's Legal Advisor be requested to investigate
the possibility of transferring by agreement, the collection
responsibility for upper tier levies directly to the Region
of Durham, and
7 . That the above be approved FORTHWITH
2
TR-100-91 Page 2
Background
1. The Region
1. 1 The Region of Durham's Development Charge by-law will be in
effect on November 22, 1991. The Region has the authority
under the act to collect for hard services such as water and
sewer but the collection of levies for soft services on
behalf of any upper tier municipality has been legislated to
the lower tier municipalities under section 9 and 10 of the
Development Charges Act.
1.2 The Area Municipalities must collect the waste disposal and
general purpose (Administration and Police) development
charges on behalf of the Region of Durham.
2. Procedures
2 . 1 The Region of Durham has developed remittance and
information forms which they are suggesting be used by the
municipalities .
2 .2 The form is to be completed for each building permit to be
issued and is to be included in the Region courier.
2 . 3 The Region will complete a section of the form which will
identify for the Municipality the amount to be collected on
behalf of the Region.
2 . 4 The form will be sent back to the Municipality by Region
courier.
2 .5 The Municipality will collect the development charges before
the issuance of any building permit.
2 . 6 The Region estimates the turn around time to be three days .
In Staff's discussions with the Region we haves indicated
that we are concerned that this time frame may be somewhat
optimistic.
3. Timing and Collection
3 . 1 The Regional levies to be collected by the Municipalities
are 100% payable upon the issuance of the building permit.
3 .2 The levies collected must be remitted to the Region of
Durham on or before the 25th day of the following month.
3 . 3 There is no requirement under the Act to remit any interest
earned, and it is recommended that the interest accrue to
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TR-100-91 Page 3
the general fund to help offset the administrative cost of
the collection procedures . Regional Staff have informed
Staff of the Area Municipalities that they consider the
interest accumulation a reasonable trade off to any
administrative charge that otherwise might be considered.
4. November 22/91
4 . 1 November 23, 1991 is the effective date of any by-laws
passed under the Development Charges Act, however, given
that this is a Saturday, the Region has chosen Friday
November 22, 1991 as the effective date of their Development
Charges by-law.
4 .2 A forthwith approval is therefore requested in order for the
Municipality to be in a position to collect levies by cash
or certified cheque only.
5. Looking Ahead
5 . 1 There does not appear to be any provision under the Act for
the Region to collect the soft service development charge
even though they have the authority to collect for hard
services .
5 .2 In considering the administrative time involved in the
process, it would be more efficient to the Area
Municipalities and to the Upper Tier Municipalities if each
could collect on their own behalf, and it is therefore
recommended that Mr. Hefferon investigate the possibility of
an agreement which could accomplish this .
Respectfully submitted, Recommended for presentation
to the Committee,
ITA
M. Maran6, H.BSc . , AMCT Lawrenc Kotseff
Treasurer Chief A ,inistrative Officer
o PA*_O�- &JA,
Franklin Wu, M.C. I.P.
Director of Planning
and Development
MAM/PP