FINANCE AND ADMINISTRATIVE COMMITTEE
	TO:	Mayor and Members of Council
	FROM:	Barb Cribbett, Treasurer Joel Lustig, Director, Financial and Client Services
	PREPARED BY:	Jennifer Nelson, Manager Development Finance
	DATE OF MEETING:	June 20, 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 1.42%, effective July 1, 2005.

PURPOSE:

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

July 1, 2005, 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 recommended indexing of 1.42% represents the increase for the fourth quarter of 2004 and first 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 July 1, 2005, as recommended, are attached.

ATTACHMENTS:

Exhibit A – Town of Markham Recommended Development Charges for July 1, 2005

Joel Lustig, Director, Financial and Client Services

Barb Cribbett, Treasurer

Andy Taylor,

Commissioner, Corporate Services

Q:\Finance and Administration\Finance\SHARED\2004 Finance_Admin Cttee Reports\0478 Development Charge Indexing January 1 2005.doc