Item - 2010.AU19.9

Tracking Status

  • City Council adopted this item on August 25, 2010 without amendments and without debate.
  • This item was considered by the Audit Committee on July 5, 2010 and adopted without amendment. It will be considered by City Council on August 25, 2010.

AU19.9 - Administration of Development Funds, Parkland Levies and Education Development Charges

Decision Type:
ACTION
Status:
Adopted on Consent
Wards:
All

City Council Decision

City Council on August 25, 26 and 27, 2010, adopted the following:

 

1.         City Council request the Chief Building Official, in consultation with the General Manager of Parks, Forestry and Recreation, to implement controls to prevent the issuance of a building permit until parkland dedication fees have been paid.

 

2.         City Council request the Deputy City Manager and Chief Financial Officer to review the infrastructure construction price index currently used by the City of Ottawa in order to determine whether or not a similar index should be used to adjust annual development charge rates at the City of Toronto.

 

3.         City Council request the Chief Building Official, in consultation with the City Solicitor, to review the feasibility of including in conditional permit agreements, additional fees payable when terms are not met.

 

4.         City Council request the Director of the Affordable Housing Office, in consultation with the Chief Building Official, to review procedures to ensure that information provided in regard to exemptions from development charges for non-profit housing projects is accurate and complete.

 

5.         City Council request the Chief Building Official and the Deputy City Manager and Chief Financial Officer to review those areas of the by-law which are the subject of staff misinterpretation and ensure that such areas are addressed either through amendments to the by-law, policies and procedures manual or through additional staff training.

 

6.         City Council request the Chief Building Official to evaluate the current audit process to ensure development charge calculations are verified to supporting documentation.  Consideration be given to an audit process prior to the issuance of a building permit.

 

7.         City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the City Solicitor, to develop a corporate policy which formalizes the parameters that should be applied when determining the parkland dedication requirement for developments covered by the Etobicoke Motel Strip Secondary Plan.

 

8.         City Council request the General Manager, Parks, Forestry and Recreation, to ensure that in the future, where parkland dedication fees are set out in negotiated agreements that amounts calculated and collected are in accordance with such agreements and appropriate documentation is maintained for all agreements.

 

9.         City Council request the General Manager, Parks, Forestry and Recreation, to review negotiated parkland dedication fees for projects where the developer still owns the building.  This review should ensure the correct amounts were collected and assess the feasibility of recovering any uncollected funds.

 

10.       City Council request the General Manager, Parks, Forestry and Recreation, in establishing cash payments in lieu of parkland, to set up a process to ensure that land appraisals are current and in compliance with the requirements of the applicable by-law.

 

11.       City Council request the Deputy City Manager and Chief Financial Officer, in consultation with the Chief Building Official, to enter into discussions with the Toronto Catholic District School Board with a view to implement, where feasible, consistent definitions and policies affecting development charge calculations.

 

12.       City Council request the City Treasurer and the Chief Building Official to ensure there is a regular reconciliation of development charges financial information in IBMS and SAP.  An interface between the two systems should be considered.

 

13.       City Council request the Deputy City Manager and Chief Financial Officer to review those development charge reserve funds which have been in existence since prior to amalgamation to determine how these funds can best be used.

Background Information (Committee)

Report (June 16, 2010) from the Auditor General - Administration of Developments Funds, Parkland Levies and Education Development Charges
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-31698.pdf
Appendix 1
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-31699.pdf
Appendix 2 - Management's Response
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-31700.pdf

AU19.9 - Administration of Development Funds, Parkland Levies and Education Development Charges

Decision Type:
ACTION
Status:
Adopted
Wards:
All

Committee Recommendations

The Audit Committee recommends that:

 

1.         City Council request the Chief Building Official, in consultation with the General Manager of Parks, Forestry and Recreation, to implement controls to prevent the issuance of a building permit until parkland dedication fees have been paid.

 

2.         City Council request the Deputy City Manager and Chief Financial Officer to review the infrastructure construction price index currently used by the City of Ottawa in order to determine whether or not a similar index should be used to adjust annual development charge rates at the City of Toronto.

 

3.         City Council request the Chief Building Official, in consultation with the City Solicitor, to review the feasibility of including in conditional permit agreements, additional fees payable when terms are not met.

 

4.         City Council request the Director of the Affordable Housing Office, in consultation with the Chief Building Official, to review procedures to ensure that information provided in regard to exemptions from development charges for non-profit housing projects is accurate and complete.

 

5.         City Council request the Chief Building Official and the Deputy City Manager and Chief Financial Officer to review those areas of the by-law which are the subject of staff misinterpretation and ensure that such areas are addressed either through amendments to the by-law, policies and procedures manual or through additional staff training.

 

6.         City Council request the Chief Building Official to evaluate the current audit process to ensure development charge calculations are verified to supporting documentation.  Consideration be given to an audit process prior to the issuance of a building permit.

 

7.         City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the City Solicitor, to develop a corporate policy which formalizes the parameters that should be applied when determining the parkland dedication requirement for developments covered by the Etobicoke Motel Strip Secondary Plan.

 

8.         City Council request the General Manager, Parks, Forestry and Recreation, to ensure that in the future, where parkland dedication fees are set out in negotiated agreements that amounts calculated and collected are in accordance with such agreements and appropriate documentation is maintained for all agreements.

 

9.         City Council request the General Manager, Parks, Forestry and Recreation, to review negotiated parkland dedication fees for projects where the developer still owns the building.  This review should ensure the correct amounts were collected and assess the feasibility of recovering any uncollected funds.

 

10.       City Council request the General Manager, Parks, Forestry and Recreation, in establishing cash payments in lieu of parkland, to set up a process to ensure that land appraisals are current and in compliance with the requirements of the applicable by-law.

 

11.       City Council request the Deputy City Manager and Chief Financial Officer, in consultation with the Chief Building Official, to enter into discussions with the Toronto Catholic District School Board with a view to implement, where feasible, consistent definitions and policies affecting development charge calculations.

 

12.       City Council request the City Treasurer and the Chief Building Official to ensure there is a regular reconciliation of development charges financial information in IBMS and SAP.  An interface between the two systems should be considered.

 

13.       City Council request the Deputy City Manager and Chief Financial Officer to review those development charge reserve funds which have been in existence since prior to amalgamation to determine how these funds can best be used.

Origin

(June 16, 2010) Report from the Auditor General

Summary

The Auditor General’s annual work plan included a review of the administration of development funds.

 

The objective of this review was to assess the adequacy of procedures implemented by management to ensure that development charges, education development charges, and parkland levies are being effectively and efficiently administered.  

 

Our review identified a number of areas where there are opportunities for administrative improvements.  The implementation of the 13 recommendations made in this report will strengthen internal controls for collecting development charges and parkland levies, achieve processing efficiencies by automating manual business processes and improve the accountability for the administration of development funds.

Background Information

Report (June 16, 2010) from the Auditor General - Administration of Developments Funds, Parkland Levies and Education Development Charges
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-31698.pdf
Appendix 1
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-31699.pdf
Appendix 2 - Management's Response
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-31700.pdf

Motions

1 - Motion to Adopt Item moved by Councillor Mike Del Grande (Carried)

That the Audit Committee recommend to City Council adoption of the recommendations contained in the report (June 16, 2010) from the Auditor General.

Source: Toronto City Clerk at www.toronto.ca/council