General Committee – Finance and Administrative
	TO:	Mayor and Members of Council
	FROM:	Andy Taylor, Commissioner of Corporate Services Barb Cribbett, Treasurer
	PREPARED BY:	Jennifer Nelson, Manager, Development Finance
	DATE OF MEETING:	2005-Nov-21
	SUBJECT:	Development Charges December 31, 2004 Balances and Annual Activity of the Accounts

RECOMMENDATION:

That the report titled “Development Charges December 31, 2004 Balances and Annual Activity of the Accounts” be received for information purposes

PURPOSE:

Section 43(1) of the Development Charges Act, 1997 require the Treasurer to submit annually to Council a financial statement relating to development charge by-laws and reserve funds established under section 33 of the Development Charges Act, 1997

BACKGROUND:

Enclosed are the statistics for the twelve (12) months ended December 31, 2004.

The December 31, 2004 closing balance of the Development Charge reserve accounts was $84,236,775 (Schedule A). This balance represents the cash balance in the reserves, and does not include unfunded commitments. As previously communicated to Council in 2005, the majority of the reserves are dedicated to specific capital projects.

The report provides the detailed funding for projects approved by Council in the Corporation’s 2004 Capital Budget and throughout 2004. The net decrease in the reserve fund in 2004 was $5,063,588.

The Net Amount Transferred to Capital Projects was $37,188,300 (Schedule C). The two components of the transfer include $38,175,666 of growth related projects being funded from development charges as well as a transfer back to development charges of $987,367 resulting from the closure of capital projects.

A summary of the Development Charges activity for the year is detailed as follows:

January 1, 2004 opening balance $89,300,363

Development Charges received 29,929,815

Interest earned 2,194,897

Net amount transferred to capital projects (37,188,300)

Balance as at December 31, 2004 $84,236,775

As part of the Development Charges Act, 1997 the Treasurer is to report annually on the funds received and dispersed.

Schedule A (attached) detail balances by individual component of the reserve fund.

Schedule B (attached) details of the funds received and dispersed by category.

Schedule C (attached) details of the capital projects funded and closed.

Schedule D (attached) details of the credits recognized.

Schedule E (attached) investment details as required under Reg. 74/97 Section 8 of the

Municipal Act.

Once received by Council a copy of this report will be forwarded to the Ministry of Municipal Affairs and Housing as required by the Development Charges Act, 1997.

COMPONENT CATEGORIES

The balance of the Reserve Fund is made up of the following major categories:

Town Wide Soft $ 59,787,636

Town Wide Hard 7,334,555

Area Specific 17,114,584

Total $ 84,236,775

FINANCIAL CONSIDERATIONS:

No financial implications are to be considered in this report.

ENVIRONMENTAL CONSIDERATIONS:

Not Applicable.

ACCESSIBILITY CONSIDERATIONS:

Not Applicable.

ENGAGE 21ST CONSIDERATIONS:

Not Applicable

BUSINESS UNITS CONSULTED AND AFFECTED:

Not Applicable

ATTACHMENTS:

Schedule A - Balances in the individual component of the reserve fund

Schedule B - Funds received and dispersed by category.

Schedule C - Capital projects funded in 2004 as well as previous years’ projects closed in 2004

Schedule D - Details of credits recognized

Schedule E - Investment details as required under Reg. 74/97 Section 8 of the Municipal Act

Barb Cribbett, Treasurer

Andy Taylor, Commissioner, Corporate Services