GENERAL COMMITTEE – FINANCE AND ADMINISTRATIVE
	TO:	Mayor and Members of Council
	FROM:	Andy Taylor, Commissioner, Corporate Services Barb Cribbett, Treasurer
	PREPARED BY:	Jennifer Nelson, Manager Development Finance
	DATE OF MEETING:	November 21, 2005
	SUBJECT:	Development Charges Indexing

RECOMMENDATION:

THAT the report titled “Development Charges Indexing” be received;

AND THAT Council approve an increase in development charges of 3.31%, effective January 1, 2006.

PURPOSE:

The purpose of this report is to recommend the indexing of development charges, effective

January 1, 2006, in accordance with the Statistics Canada Quarterly, Construction Price Statistic for non-residential buildings in Toronto.

BACKGROUND:

Section 15 of the Town’s Development Charge by-laws, enacted August 31, 2004, states that “the development charges referred to in Schedule “B” shall be adjusted semi-annually without amendment to this by-law, commencing on the first day of January and the first day of July, of each year commencing January 1, 2005, in accordance with the most recent change in the Statistics Canada Quarterly, Construction Price Statistics (Catalogue No. 62-007)”.

On January 1, 2005 the development charge was indexed 6.9% which represented the increase in the Construction Price Index for the first three quarters of 2004. The development charge was indexed 1.42% effective July 1, 2005 which represented the increase for the fourth quarter of 2004 and the first quarter of 2005. The recommended indexing of 3.31% represents the increase for the second and third quarter of 2005. The Construction Price Index includes costs associated with the construction of industrial, commercial and institutional buildings which more closely aligns with the costs incurred by the Town of Markham for these services.

FINANCIAL CONSIDERATIONS:

The indexed development charge rates effective January 1, 2006, as recommended, are attached

ENVIRONMENTAL CONSIDERATIONS:

Not applicable

ACCESSIBILITY CONSIDERATIONS:

Not applicable

ENGAGE 21ST CONSIDERATIONS:

Not applicable

BUSINESS UNITS CONSULTED AND AFFECTED:

Not applicable

ATTACHMENTS:

Exhibit A – Town of Markham Recommended Development Charges for January 1, 2006

Barb Cribbett, Treasurer

Andy Taylor, Commissioner, Corporate Services