Development Charges Study Presentation to City Council May 27th, - PowerPoint PPT Presentation

City of Greater Sudbury Development Charges Study Presentation to City Council May 27th, 2014

Purpose 1) Review feedback from Community Consultation 2) Seek City Council’s direction on Policy related matters 3) Discuss options for DC Rates  For City Council decision on June 10 th 1

Community Consultation Process • Treasurers Reports on Revenues and Expenses: Annually • Growth Forecast: Spring 2013 • Commencement of Development Charges Study: November 2013 • Release of Draft DC Study: April 11, 2014 • Public Open House: April 23, 2014 • Public Input Meeting: May 6 th , 2014 • On-Line Comments: May 13 th , 2014 • Staff Attendance at Meetings: April to May 2

Summary of Feedback Received • General agreement on key principle that “growth should pay growth costs” • Questions about the calculations of the DC eligible share of Capital Projects • Concern with increase in proposed DC rates – More specifically the increase in the Single Family Dwelling Rate and Semi Detached dwelling from Multiple to Single 3

Summary of Feedback Received • Exemptions to encourage intensification • Need to revisit the Development Cost Sharing Policy – Clarification of Local Services Costs 4

Decision Tree: DC Rates Approve Increased DC Rates? Yes No Proposed Rates Phase in ALL Phase in ONLY Freeze, Except Freeze July 10/14 Increasing Rates Semi Detached Phase in Semi Rate (Option 4) (Option 1) (Option 2 & 3) Rate (Option 5) How Long? How Long? 2 to 5 years 2 to 5 Years 5

Options Single Semi Multiple Industrial Non-Industrial (per Unit) (per Unit) (per Sq.ft) (per Sq. ft) Detached (per Unit) Current Rate (until July $14,785 $9,258 $9,258 $4.33 $10.08 9 th , 2014) Option 1: $17,163 $17,163 $10,098 $4.75 $8.83 Proposed Rates Option 2: $15,974 / $13,211 / $9,678 / $4.54 / $8.83 Phase in Over 2 Years $17,163 $17,163 $10,098 $4.75 Option 3: $15,578 / $11,893 / $9,538 / $4.47 / $8.83 Phase in Over 3 Years $16,370 / $14,528 / $9,818 / $4.61 / $17,163 $17,163 $10,098 $4.75 Option 4: $14,785 $14,785 $9,258 $4.33 $8.83 Freeze Option 5: $14,785 $12,022 / $9,258 $4.33 $8.83 Freeze & Phase in Semi $14,785 6

Financial Implications of Options OPTION 1: OPTION 2: OPTION 3: OPTION 4: OPTION 5: Proposed Phase in Phase in Freeze Freeze & Rates Over 2 years Over 3 years Phase in Semi Estimated Revenue Loss as disclosed in n/a $0.6 M $1.1 M $4.6M $4.6 M + Council report 7

Policy Decisions • Exemption of Designated Areas in Town Centres and BIAs • Affordable Housing Exemption • Redevelopment Credits – proposed increase from 2 to 5 years • Rates: Effective July 10 th , 2014 and annual indexing July 1 of each year 8

Next Steps: • Seeking City Council direction on Policy issues • Continuation of Excemption for Designated Areas and BIA (former Town Centres) • Affordable Housing Exemption • Seeking City Council direction on Options for the approval of DC Rates effective July 10 th , 2014 • Staff recommend that 2-3 options be referred to the June 10 th City Council Meeting • June 10 th , 2014: City Council to approve the DC Rates • June 24 th , 2014: City Council to approve By-Law 9

City of Greater Sudbury Development Charges Study Presentation to City Council May 27th, 2014