2014 Development Charges Reserve Fund Statutory Annual Report. THAT the 2014 Development Charges Reserve Fund Statutory Annual Report BE RECEIVED.

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1 TO: FROM: Chair and Members Corporate and Emergency Services Committee Laurie Bissonette Director of Finance DATE: August 27, 2015 SUBJECT: Development Charges Reserve Fund Statutory Annual Report REPORT NO: CES RECOMMENDATION THAT the Development Charges Reserve Fund Statutory Annual Report BE RECEIVED. ORIGIN Report required pursuant to By-law No. -22 and the Development Charges Act, ANALYSIS The Development Charges (DC) Act, 1997 S.O. 1997, c. 27, s. 43, requires the Treasurer to report annually on the opening and closing balances of the Development Charges Reserve Funds and the transactions related to the funds. Schedule A summarizes the development charge reserve fund balances. Schedules B through E provide a financial statement for each service category and Schedule F shows projects financed, in whole or in part, by development charges and the percent funded. Schedule A also summarizes the DC Revenues projected, based on the rates approved in the new Development Charge By-law -22 and growth as outlined in the DC Background Study. The shortfall between the actual DC revenue collected and the projection for was $1.4 million and has been included for information purposes at the bottom of Schedule A. This shortfall may be the result of many factors including general timing of development and therefore collection of fees. However, the variance from projection is significant. In, Council adopted DC rates below the recommended level in an effort to increase development across the District. The number of permits did rise in the second half of, but this may also be due to the fact that there was media coverage regarding the potential reduction in DC rates and developers were postponing development until the by-law was ratified. Staff is recommending that capital expenditures be maintained at the proposed rates for 2015 which will provide a full year to assess the levels of DC revenues with the new by-law in effect. If DC revenues remain at levels significantly below the projections from the DC study, staff will be recommending a reduction in capital expenditures. Page 1

2 FINANCIAL CONSIDERATIONS The Financial Considerations are included in the Analysis section of the report. COMMUNICATIONS The Development Charges Reserve Fund Annual Report will be submitted to the Ministry of Municipal Affairs and Housing, as required by Municipalities with Development Charge By-laws. STRATEGIC PRIORITIES Reporting on the status of the Development Charge Reserve Fund supports the following goal and strategy identified in The District Municipality of Muskoka s Strategic Priorities: 2. Build financial strength and demonstrate fiscal responsibility and accountability through the budget process, public reporting of budget results, the corporate credit rating and debt reduction. 2.9 Continue the development of a long range financial plan for the replacement and upgrade of corporate infrastructure that is both financially viable and consistent with the needs and expectations of Council and other governing regulatory bodies. Respectfully submitted, Laurie Bissonette, CPA, CGA Director of Finance Julie Stevens, CPA, CA Commissioner of Finance and Corporate Services Page 2

3 Schedule A DEVELOPMENT CHARGE RESERVE FUND STATEMENT AS AT DECEMBER 31, Hauled Sewage Roads Water Wastewater Total Opening January 1, $ 34,812 $ 6,001 $ 289,270 $ 163 $ 330,246 Development Charges Collected (A) 99, , , ,407 1,584,125 Interest Earned , ,450 Revenue Sub-Total $ 134,726 $ 854,977 $ 582,405 $ 348,713 $ 1,920,821 Expenditures 100, ,837 98, ,642 1,175,530 Closing December 31, $ 34,377 $ 182,140 $ 483,703 $ 45,071 $ 745,291 Projected DC Revenues (B) $ 178,080 $ 1,266,989 $ 615,327 $ 904,112 $ 2,964,508 Gain/(Shortfall) of Actual DC Revenues (A-B) $ (78,564) $ (418,769) $ (327,345) $ (555,705) $ (1,380,383) Notes: 1. See Schedules B through E for Financial Statement of each Fund. 2. See Schedule F for projects financed, in whole or in part, by Development Charges. Page 3

4 Schedule B HAULED SEWAGE DEVELOPMENT CHARGES RESERVE FUND Opening Jan 1/14 Actuals Transactions Closing Dec 31/14 DEVELOPMENT FEES COLLECTED 1,861,424 99,516 1,960,940 INTEREST 170, ,077 TOTAL REVENUE 2,032,103 99,914 2,132,017 CAPITAL EXPENDITURES FINANCED BY DEVELOPMENT FEES LAGOON - FREEMAN 22, RYDE UPGRADE/EXPANSION , BB LAGOON UPGRADE/EXPANSION 39, RECEIVING FACILITIES PC SEWAGE PLANT 2, BAXTER UPGRADE/EXPANSION ,525 TOTAL EXPENDITURES 1,997, ,349 2,097,640 RESERVE FUND ENDING BALANCE 34,812 (435) 34,377 Page 4

5 Schedule C ROADS DEVELOPMENT CHARGES RESERVE FUND Opening Jan 1/14 Actuals Transactions Closing Dec 31/14 DEVELOPMENT FEES COLLECTED 13,866, ,220 14,714,259 INTEREST 92, ,675 TOTAL REVENUE 13,958, ,976 14,807,934 CAPITAL EXPENDITURES FINANCED BY DEVELOPMENT FEES MR33 from Hwy 400 E 4.6 km 4, MR 4 from MR 35 W 3.3.km 26, MR 16 KIRBY'S BEACH RD W 1.7km 2, MR 4 fr 3.3 km W of MR 35 to Shea Rd 7, MR4 FROM SHEA RD TO MR25 8, MR 16 from MR 37 to MR km 1, MISCELLANEOUS LAND 12, MR 2 AT IRIS ST 14, MR2 FROM MR10 TO RIVERSIDE 3.4KM 57, MR117 Paint Lk Bridge to Hwy km 2, MR 17 Oakwood to Brydons Bay 106, MR 44 from MACK'S RD to MR km 125, MR 17 Hoc Roc River Bridge to MR , MR117 FR STONELEIGH RD W TO HW 4, MR 24 from Hwy 141 to MR 4 5km 2, MR 2 FROM MR 10 SOUTHERLY 7.2KM 110, MR 3 FROM HV/ML BNDRY N'LY 3.6 KM 34, MR 34 FR JOE KING'S RD E'LY TO END 7.3KM 59, MR 10 FR PORT SYDNEY BRIDGE E 10KM 7, MR 38 FROM MR 169 W 8.0 KM 14, MR 39 FROM MR 117 TO HWY KM 4, MR 6 MCARTHUR SIDE RD TO BLACK RIVER RD 11, MR 9 FR WHITEHOUSE RD N'LY 1.0KM 2, MR 12 FR HARRISON TR W TO MOOSE DEER PT 13, MR 13 FROM JIM WOOD LN S'LY 2.1KM 6, MR 7 FR MR 28 N TO HWY KM 1, MR 16 FR KIRBY'S BEACH RD S'LY TO END MR 22 FROM MR 21 TO ELDER DR 6.7KM 1, MR 29 FROM MR 169 TO EAST RD 2.0KM MR 46 FROM CHILD'S PIT N'LY 2.3KM MR 48 FROM MR 5 TO HWY KM 1, MR 44 from HWY 11 to MACK'S RD 1.2KM 11, MR 6 REHAB GARTERSNAKE BRIDGE # MR 13 SIGNALS CN CRSSG 9 MILE LK RD 2,310 13,952, ,837 14,625,794 6, , ,140 Page 5

6 Schedule D DISTRICT WATER DEVELOPMENT CHARGES RESERVE FUND Opening Jan 1/14 Actuals Transactions Closing Dec 31/14 DEVELOPMENT FEES COLLECTED 5,488, ,982 5,776,880 INTEREST 287,052 5, ,205 TOTAL REVENUE 5,775, ,135 6,069,085 CAPITAL EXPENDITURES FINANCED BY DEVELOPMENT FEES HV EARL'S RD CONNECT TO HANES RESERVOIR 21, PC MEDORA TO PCP 4, HV WTP HVAC & MISC REHAB 51, BALA WTP Modification Phase III 22,370 TOTAL EXPENDITURES 5,486,680 98,702 5,585,382 RESERVE FUND ENDING BALANCE 289, , ,703 Page 6

7 Schedule E DISTRICT SEWER DEVELOPMENT CHARGES RESERVE FUND Opening Jan 1/14 Actuals Transactions Closing Dec 31/14 DEVELOPMENT FEES COLLECTED 7,560, ,407 7,908,934 INTEREST 290, ,941 TOTAL REVENUE 7,851, ,550 8,199,875 CAPITAL EXPENDITURES FINANCED BY DEVELOPMENT FEES PC FORCEMAIN MEDORA TO PCP 2, SEWAGE TREATMENT PLANT PC STP EXPANSION 46, HV MV STP EA & ENGINEERING 32, BB LAGOON LANE STP COMPLETION 58, RIVER ST P.S. EXPANSION 16, CHURCH ST PS UPGRADE 146,542 7,851, ,642 8,154, ,908 45,071 Page 7

8 Schedule F Projects Financed, in whole or in part, by Development Charges For the Year Ended December 31, Service Category Project Number Project Description Development Charge Funding Associated Project Funding DC Shortfall Reserve Financing Other Funding Total Project Funding % DC Funding Hauled Sewage LAGOON - FREEMAN 22,281 9,550 31,831 70% RYDE UPGRADE/EXPANSION ,128 28, % BB LAGOON UPGRADE/EXPANSION 39, ,047 75, ,086 81% RECEIVING FACILITIES PC SEWAGE PLANT 2, ,691 3, ,000 99% BAXTER UPGRADE/EXPANSION , ,401 91% 100, ,738 89, ,447 Roads MR33 from Hwy 400 E 4.6 km 4,056 86,917 90,973 4% MR 4 from MR 35 W 3.3.km 26, , , ,881 25% MR 16 KIRBY'S BEACH RD W 1.7km 2,692 24,233 26,925 10% MR 4 fr 3.3 km W of MR 35 to Shea Rd 7,907 40,246 48,153 16% MR4 FROM SHEA RD TO MR25 8,461 36,508 44,969 19% MR 16 from MR 37 to MR km 1,504 25,252 26,756 6% MISCELLANEOUS LAND 12,338 38,968 51,305 24% MR 2 AT IRIS ST 14, , ,282 12% MR2 FROM MR10 TO RIVERSIDE 3.4KM 57, , ,850 1,201,111 25% MR117 Paint Lk Bridge to Hwy km 2,133 40,529 42,662 5% MR 17 Oakwood to Brydons Bay 106, , ,655 13% MR 44 from MACK'S RD to MR km 125,014 1,123,019 38,669 1,286,702 10% MR 17 Hoc Roc River Bridge to MR ,358 38,296 49,653 23% MR117 FR STONELEIGH RD W TO HW 4, ,500 1,110,637 1,228,470 10% MR 24 from Hwy 141 to MR 4 5km 2,085 43,321 45,406 5% MR 2 FROM MR 10 SOUTHERLY 7.2KM 110,332 1,063,411 1,173,742 9% MR 3 FROM HV/ML BNDRY N'LY 3.6 KM 34, , ,892 6% MR 34 FR JOE KING'S RD E'LY TO END 7.3KM 59,983 1,139,678 1,199,661 5% MR 10 FR PORT SYDNEY BRIDGE E 10KM 7, , ,037 5% MR 38 FROM MR 169 W 8.0 KM 14, , ,627 5% MR 39 FROM MR 117 TO HWY KM 4,744 90,436 95,181 5% MR 6 MCARTHUR SIDE RD TO BLACK RIVER RD 11, , ,681 2% MR 9 FR WHITEHOUSE RD N'LY 1.0KM 2,276 88,694 90,969 3% MR 12 FR HARRISON TR W TO MOOSE DEER PT 13, , ,327 3% MR 13 FROM JIM WOOD LN S'LY 2.1KM 6, , ,081 3% MR 7 FR MR 28 N TO HWY KM 1,606 78,677 80,283 2% MR 16 FR KIRBY'S BEACH RD S'LY TO END ,064 32,718 2% MR 22 FROM MR 21 TO ELDER DR 6.7KM 1,941 95,113 97,054 2% MR 29 FROM MR 169 TO EAST RD 2.0KM ,839 26,366 2% MR 46 FROM CHILD'S PIT N'LY 2.3KM ,246 33,925 2% MR 48 FROM MR 5 TO HWY KM 1,261 61,787 63,048 2% MR 44 from HWY 11 to MACK'S RD 1.2KM 11, , ,792 5% MR 6 REHAB GARTERSNAKE BRIDGE # ,986 5,248 5% MR 13 SIGNALS CN CRSSG 9 MILE LK RD 2,310 20,791 23,101 10% 672, ,312 9,984,817 38,669 11,188,635 Water HV EARL'S RD CONNECT TO HANES RESERVOIR 21,042 21, % PC MEDORA TO PCP 4, , ,788 3% HV WTP HVAC & MISC REHAB 51,186 57, ,741 47% BALA WTP Modification Phase III 22,370 33,104 55,474 40% 98, ,788 57, ,045 Wastewater PC FORCEMAIN MEDORA TO PCP 2, , ,644 1% SEWAGE TREATMENT PLANT 10 1,168,000-1,168, % PC STP EXPANSION 46,982 3,528, ,000 2,942,747 6,268,332 57% HV MV STP EA & ENGINEERING 32, , , ,227 50% BB LAGOON LANE STP COMPLETION 58, , , % RIVER ST P.S. EXPANSION 16, ,841 1,040,767 1,357,030 23% CHURCH ST PS UPGRADE 146,542 31, ,712 1,188,382 2,038,480 9% 303,642 5,556, ,922 4,131,129 10,688,579 1,175,530 6,628,936 10,948,886 4,227,353 22,980,705 Page 8