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HomeMy WebLinkAboutTR-23-01 . .' , ~ THE CORPORATION OF THE MUNICIPALITY OF CLARlNGTON REPORT Meeting: General Purpose and Administration Committee File #: F4/ Res.#: (;jJlf- 317-6/ Date: June 18, 200 I Report #: TR-23-01 File #: By-Law #: Subject: DEVELOPMENT CHARGES BY GREATER TORONTO SERVICE BOARD (GTSB) FOR GO TRANSIT Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report TR-23-01 be received; 2. THAT Municipality of Clarington endorse the Region of Durham as the appropriate level of government to collect development charges for growth related capital costs required for GO Transit only; and 3. THAT the GTSB, the Durham Region Area Municipalities, the Region of Durham and Mr. John O'Toole, MPP, be advised of Council's decision, FORTHWITH. Background: 1.0 The GTSB committee member municipalities passed a resolution (Attachment #1) requesting that legislation be put in place or amended to permit the GTSB to levy development charges to assist in funding growth related capital costs for Go Transit. 2.0 The Region of Durham along with the other GTA Regions have been working on a background study, as required by the legislation. The Region of Durham's Report 200 I-F -37, outlining the proposed timetable for the implementation of a Go Transit Development Charge is provided for committee's information, as Attachment #2. 3.0 The GTSB does not have the legislative ability to levy charges, and any change to permit that would require legislative amendment. Since the ability currently resides with the Regional level, and in consideration ofthe degree of completion of their work, it is not deemed advisable to support the GTSB request at this time. In addition, the ability to levy charges contradicts the expressed mandate of the GTSB and would 901 Report TR-23-01 DEVELOPMENT CHARGES GTSB FOR GO TRANSIT Page 2 effectively be the first step in establishing a bona-fide level of government, which is again contrary to expressed direction and mandate of the GTSB. 4.0 The Region of Durham's proposal will have the effect of an "area specific" charge which will help to protect the Regional municipalities from subsidizing the total capital infrastructure across the entire GT A area. 5.0 It is recommended therefore that the municipality endorse the Region of Durham, as the appropriate authority to levy and collect Go Transit Development Charges. Respectfully submitted, Reviewed by, c~~~~ ~C>--J1:c arie Marano, HBSc., AMCT, CMO., Treasurer. Franklin Wu, Chief Administrative Officer. MM/hjl Attachment 902 Attachment # 1 DEVELOPMENT CHARGE{ - ~O TRAN~ "- / McCallion___ 3. WHEREAS, under existing legislation GO Transit does not have the power to directly impose development charges for the growth-related portion of its 10 year Capital Plan; AND WHEREAS the responsibility for collecting GO Transit development charges by default rests with GTA/Hami/ton municipalities; AND WHEREAS, the existing process for imposing GO Transit development charges is fragmented and difficult to administer; THEREFORE BE IT RESOL VED THA T the appropriate legislation be amended to permit the GTSB to directly impose development charges for the growth-related capital costs required for GO Transit. Miller Not Voted On. Refer this motion regarding development charges to the constituent municipalities and regional governments for a response by June 2001. Carried. No Recorded Vote. 903 MAY 18 2001 10:37 FR REG OF DUR-FINANCE 905 571 7460 TO CLARINGTON P.02/11 ATTACHMENT 112 REVISED , - ,~ The Regional Municipality of Durham Report to: Finance & Administration Committee From: R.J. Clapp, Commissioner of Finance Report No.: 2001-F-37 Date: May 16, 2001 SUBJECT: PROPOSED TIMETABLE FOR THE IMPLEMENTATION OF A GO TRANSIT DEVELOPMENT CHARGE (cc #270.1999, #308.2000) RECOMMENDATION: THAT the Finance and Administration Committee recommend to Regional Council that: r-'-, 1) The proposed timetable for the implementation of a Region-specific GO Transit Development Charge as indicated in this report be approved to allow the expeditious implementation of a GO Transit Development Charge; 2) Further, this report be forwarded to the Greater Toronto Services Board as the response by the Region of Durham to the GTSB resolution requesting changes to Provincial legislation to allow the GTSB to directly impose development charges for GO Transit; and, 3) A copy of this report be forwarded to GO Transit, the Durham Chapter of the Urban Development Institute, the Greater Oshawa Home Builders Association, the Durham Chambers of Commerce, Boards of Trade, the Greater Toronto Services Board, the Regions of Peel, Halton and York and the Cities of Toronto and Hamilton, the Area Municipalities within Durham Region, the Minister of Municipal Affairs and Housing and the Durham MPP's. REPORT: 1.0 INTRODUCTION · The purpose of this report is to provide the Finance and Administration Committee and Regional Council with an update on the status of ongoing work by staff regarding the introduction and implementation of a Regio,\al Development Charge to assist in the financing of the growth related cap,tal costs for the GO Transit System. Thus, this report addresses two outstanding items of Council Correspondence #270-1999 and #308-2000 (attached). ,...--.- . This report also provides an updated timetable for the recommendation of a GO Transit Development Charge for the Region of Durham. · In addition, this report offers some comments on the recent resolution forwarded by the GTSB regarding a potential amendment to the Development Charges Act, 1997 and the GTSB Act to permit the GTSB to directly impose development charges for GO Transit. '9-04 fJ8 MRY 18 2001 10:38 FR REG OF DUR-FINRNCE 905 571 7460 TO CLRRINGTON P.03/11 ,,--. Report No.: 2001-F-37 2.0 BACKGROUND Page No.: 2 . In 1998, responsibility for funding the GO Transit System was transferred by the Province to the GTA Regions of Peel, York, Halton, Hamilton-Wentworth (now the City of Hamilton), Durham and the City of Toronto as part of the Provincial Local Services Realignment. . The GTA Regions, City of Hamilton and the City of Toronto became responsible for sharing the operating costs of the GO Transit System and its future capital needs. As part of the services realignment, the Province provided approximately $106 million of MCORF Transportation Funding Capital to assist in financing capital replacements and equipment purchases. . In the past 18 months, Finance staff of the GT A Regions and the Cities of Toronto and Hamilton, in conjunction with GO Transit staff, have been working cooperatively to develop the capital forecasts for the long term State of Good Repair and immediate service improvements_ As well, the plan includes capital for the expansion of the system to meet the projected growth over the next 10 years_ .r-- . In 2000, staff of the GTA Regions and the Cities of Toronto and Hamilton reached a tentative agreement on a 10 Year Growth Related Capital Forecast for the GO Transit System which totals approximately $1_0 Billion_ . Further, an agreement was also reached on a formula to share the capital costs amongst the funding partners based on an in-depth analysis of the benefits derived by each Region/City from common system capital projects (e.g, upgrade and expansion of Union Station) as well as projects benefitting specific Regions (e,g. station expansions/new stations/service improvements). · In June 2000, the 10-Year Growth Related Capital Plan and the cost sharing ,arrangement was adopted by the GO Transit Board and the Greater Toronto Services Board subject to the contribution of two-thirds funding from the Federal and Provincial governments. · The GTSB, as part of the Transportation Strategy adopted June 30, 2000 suggested that "the necessary background studies to support regional development charge by-laws for GO Transit growth related improvements be completed as expeditiously as possible" (cc #308-2000 attached)_ .,r--" 9 0 5 9!1 MRY 18 2001 10:38 FR REG OF DUR-FINRNCE 905 571 7450 TO CLRRINGTON P.04/11 r-' Report No.: 2001-F-37 3.0 THE GO TRANSIT DC BACKGROUND STUDY Page No.: 3 · The development of a 10 year $1 billion Growth Related Capital Plan for GO Transit allowed the GTA Regions/Cities to proceed with the preparation of a GTA-wide background study for the introduction and implementation of Development Charges as a means of providing a portion of the one- third municipal share of the capital program and thus reducing the tax supported financial requirements. · The Regions/Cities retained C.N. Watson and Associates and Aird and Berlis to prepare a GTA-wide Development Charge Background Study that would address common issues as well as specific concerns to each Region/City. Regional Council approved funding for Durham's share of the costs of preparing the Background Study in September, 2000 (Report #2000-F-48). . This Background Study is near completion and will form the basis for the individual Background Studies which are likely to be tabled for review in each Region/City in June and July subject to the respective Council timetables. Each Region/City will be responsible for determining matters specific to their Region/City such as the quantum, collection policies, timing, consultation process etc. r"', 4.0 REVISED TIMETABLE FOR DURHAM REGION · A revised timetable for the introduction and implementation of a GO Transit Development Charge for Durham Region is proposed with the following target dates: · Tabling of Background Report . Consultation Process . Public Meeting of Council . Final Bylaw Late June July - Early September Late September October · Staff of the Regions/Cities will be meeting with representatives of the Ontario Chapter of the Urban Development Institute and the Ontario Homebuilders as an initial step in the consultation process. Also, each Region/City will undertake further separate consultations as required in accordance with their local needs and the Development Charaes Act. 1998. . The proposed timetable would allow the Region of Durham to commence collecting a development charge for GO Transit purposes by November/December 2001. ,r-- · The Presidents of the Durham Chapter of UDI and the DRHBA & GTHBA have been notified of this report and the proposed timetable. 906 100 MAY 18 2001 10:38 FR REG OF DUR-FINANCE 905 571 7450 TO CLARINGTON P.05/11 r--- Report No.: 2001-F-37 5.0 GTSB RESOL.UTION Page No.: 4 . On April 20, 2001, the following resolution was referred by the GTSB to member municipalities requesting that Provincial legislation be enacted to permit the GTSB to impose a uniform GO Transit development charge across the Regions/City: "WHEREAS under existing legislation, GO Transit does not have the power to directly impose development charges for the growth- related portion of its 10 year Capital Plan; AND WHEREAS the responsibility for collecting GO Transit development charges by default rests with GTAlHW municipalities; AND WHEREAS, the existing process for imposing GO Transit development charges is fragmented and difficult to administer; THEREFORE BE IT RESOLVED THAT the appropriate legislation be amended to permit the GTSB to directly impose development charges for the growth-related capital costs required for GO Transit." ,,...--., · Regional staff have reviewed commentary requested of the consultants, C.N. Watson & Associates and Aird and Berlis regarding the financial and legal implications of proceeding with a uniform GTSB GO Transit development charge. The key points of this commentary include: · Currently, the GTSB does not have the statutory powers to impose a development charge and the delay involved in amending legislation would result in forgone revenues and require a new Background Study. This process could extend the commencement of collecting GO Transit development charge by one to two years. · An average uniform GTSB development charge would likely reduce the DC rate for Durham and Halton to the "average" with a commensurate increase in the property tax contribution thereby requiring an "over- contribution" from Durham taxpayers. This reflects Durham's'high growth share of GO Transit future capital costs. ~. · For those Regions which currently charge a non-residential development charge well below the full amount (i.e. Durham, Halton, Hamilton and York), the mandatory imposition of a non-residential DC would serve to disrupt the balance that has been struck between economic development incentives and capital funding needs. Essentially, individual Regions would lose the power to structure their development charge practices and policies in a way that best suits their development needs. 907 101 MAY 18 2001 10:39 FR REG OF DUR-FINANCE 905 571 7450 TO CLARINGTON P.05/11 Report No.: 2001-F-37 Page No.: 5 r-- . The current practices provide the necessary flexibility in local Development Charge policy development. · Staff of the Regions/Cities collectively have spent a considerable amount of time and effort to arrive at this stage of the process. These efforts seek to secure development charge funding to help finance the growth related capital costs of the GO Transit System. The proposal by the Regions/Cities to introduce GO Transit Development Charges demonstrates the commitment by municipalities to provide sufficient financing to proceed with expansion ofthe GO Transit System. . Any delay in the introduction of a GO Transit development charge will result in the loss of non- recoverable revenues of up to $16 million per year across the GTA Regions/Cities. . Also, at the present time, the GTSB does not have staff who are sufficiently experienced in financial capital planning and development charge policy to proceed with the background analysis, implementation and operational stages which would be required for a GTA wide GO Transit Development Charge. ,---- · Such an amendment would provide the GTSB with the new ability to directly tax for the GO Transit system. · It is the consensus of staff from the Regions/City of the six municipalities that a uniform GO Transit Development Charge imposed by the GTSB would be counterproductive and would result in costly delays pending changes to Provincial Legislation. · Further, it is agreed that each of the six municipalities should proceed forthwith under current legislation to adopt individual bylaws that take into consideration local conditions and Council approved development charge policies. This would allow the Regions/City to commence collecting GO Transit development charges without delay, · Therefore, it is recommended that a copy of this report be forwarded to the GTSB as the response by Durham Region. 6.0 NEXT STEPS · As authorized in the previous Report #2000-F-48, staff will proceed with finalizing the Background Study and draft by-law for tabling by Regional ,--- Council in June, The Background Study will provide detailed information regarding all aspects of the proposed GO Transit development charge. 908 102 .. .., MAY 18 2001 10:39 FR REG OF DUR-FINANCE 905 571 7460 TO CLARINGTON P.07/11 Report No.: 2001-F-37 Page No.: 6 .~ . The Councils ofthe other GTA Regions/City are also considering similar recommendations from their respective staffs in late May. These recommendations address the issue oftimetables and the need to proceed with the introduction of individual DC Background studies at each of the six Regions/Cities. . The Commissioners of Works and Planning and the Regional Solicitor concur with the recommendations of this report. R.J. Clapp. CA Commissioner of Finance Recommended for Presentation to Committee: r---, G.H. Cubitt, M.S.W. Chief Administrative Officer Attach. MGlreporllGO DC .'--..... 909 103 . MRY 18 2001 10:39 FR REG OF DUR-FINRNCE ~ 905 571 7450 TO CLRRINGTON P.08/11 ATTACHMENT Office of the Chair CCD270 ~ 25 years of workina for you ~ _e:rl"'-~l:o:_ - April 9, 1999 I"" ,.... . ~ . . -'.' ,.j'--.../-, Resolution No. 1999-458 Roger Anderson Regional Chair Regional Municipality of Durham. 605 Rossland Rd. E. P.O. Box 623 Whitby, Ontario LlN 6A3 APR19'.9S.;M 9: 7f!~. Dear Mr. R:ri<<lers : r--- Subject: Funding for GO Transit Capital Cosrs The follOwing request was made by members of the Region of Peel's General Committee during budget deliberations on March 11, 1999, and approved by Regional Council on March 25, 1999: Whereas it is imperative that development charges finance the growth related capital cosrs of GO Transit so that the financing burden is not placed on the homeowners; Therefore be it resolved, that the Region of Peel request each GO Transit funding Region and the City of Toronto to identify their growth related GO Transit needs over me next 10 year period in order to incorporate me capital fO~!oi:'ib~13%&?f~MENT respective GO Transit 1999 development charges by-law. Original To, ,~ ~ c.,py 1./ To: - ,..---.., The Regional Municipality of Peel ~~DJL.) 10 Peel Centre Dr" Brampton, Ont. L6T 489 ;"c.c:.J ;tle T.... Appr. Adoon -- .. w .._ . _ ~..:=..::..__. __, " (90S) 791-7800 Fax (90S) 791-2567 '-104 910 -TOS- -c , ... , ' MAY 18 2001 10:39 FR REG OF DUR FINANCE 905 571 7460 TO CLARINGTON P. 09/11 270 ".....---,. ATTACHMENT On behalf of Regional Council, I request that you give consideration to the above recol1ljllendation. I look: forward to your early reply. Please quote the Region's resolution number in your reply. Sincerely, ~ Enlll Kelb Regional Chair and Chief Executive Officer BN;sg cc: J. Penoachetti, Treasurer and Commissioner of Finance P. Allen, Commissioner of Planning Patticia Madill, Regional Clerk, Regional Municipality of Durham Joan Eaglesham, Regional Clerk. Regional Municipality of Halton Joseph Schatz, Regional/City Clerk. Regional Municipality of Hamilton-Wentworth Dennis Hearse, Regional Clerk:, Regional Municipality of York Novina Wong. City Clerk, City of Toronto ,~ .r---- 911 105 MAY 18 2001 10:39 FR REG OF DUR-FINANCE GTSB 905571 7460 TO CLARINGTON P.10/11 ATTACHMENT I Origiftlll IT", llt.:('~-.~ ~.J~:::' .-:-- I~.. .. .~'_'_~ - CC #308 ~. Greater Toronto Services Board July 18,2000 p(rJ}II~1 Copy I TQ' K..J. c"1Cti" =-- I , A. L .Ge..CCD'\ r ; c;.., 1-\. C-l>. b~ r ..~ -::-,..'.~ (, e.G, ) ;:jl~ . l=i ( t Dear Municipal Clerk; ;:";"lIr,c. ~()r. A~T/cn At its meeting held onJune 30,2000, the Greater Toronto Services Board adopted the attached Clause 1 of Transportation Committee Report No. 10, entitled "Comments on Removing Roadblocks - The Draft Strategic Transportation Plan for the Greater Toronto Area and Hamilton-Wentworth" and by so doing, adopted: . (a) a strategy as a foundation to maintaining and improving the economic health and competitiveness of the Greater Toronto Area and Hamilton-Wentworth and the quality ofEfe of the area's residents; and r--, (b) actions for implementing the Strategic Transportation Plan. The following recommendations, in particular, are being drawn to your attention: GTSB member municipalities are requested to protect the GTA transit corridors] identified in the Strategic Transportation Plan and ensure supportive land use policies for these corridors through their official plans as they are reviewed. , fic.ri' GO Transit, GTSB member municipalities and their transit operating agencies are requested to participate in a co-operative process to develop a GT A-wide transit co- ordination protocol to provide a common basis for approaching inter-regional transit co-ordination issues. The provincial government has been requested, in consultation with the Greater Toronto Services Board and GTSB member municipalities, to identifY and implement, including enfixcement, a network of high occupancy vehicle lanes on 400-series highways in the Greater Toronto Area and Hamilton-Wentworth. laws The necessary background studies to support regional development charge by- l for GO Transit growth related improvements are to be completed as expeditious]~ . 1000 Murray Ross Parkway Toronto, Ontario M3J 2P3 Tel; 416-338-2989 Fax: 416-338-2994 Toll Free: 1-877-335-3319 ~{' r r-- ~ 9 1 2 i fO 6 / r /~~4 f!1 ,~. . ~ -3;, MAY 18 2001 10:40 FR REG OF DUR-FINANCE 905 571 7460 TO CLARINGTON ~, GTSB ATTACHMENT -2- P.l1/11 CC #308 as possible, and the appropriate by-laws presented for approval no later than October 2000. A copy of Clause 1 ofTransporution Committee Report No. 10 is being forwarded to you for your attention and any action you deem appropriate. cc. Chairman Alan Tonks Chair Bill Fisch, Chair, Transportation Committee Attachment. ,.---., ,~ 107 913 ** TOTAL PAGE.l1 **