Total Budget
|
$10,200,000
|
Less: ICIP Grant
|
-$5,485,084
|
Sub-total
|
$4,714,916
|
Less: Development Charges
|
-$3,064,695
|
Sub-total
|
$1,650,221
|
Less: Foster Hewitt Donation
|
-$25,000
|
Less: Lions Club Donation
|
-$1,000,000
|
Sub-total
|
$625,221
|
Draw from Sunderland Arena Reserve
|
-$625,221
|
Unfunded
|
$Nil
|
- The Sunderland Lions Club has indicated that they would be interested in contributing to this project, based upon a number of expectations for the project.
- Development Charges (DCs) are one time fees collected from developers at the time a building permit is issued. These fees help pay for infrastructure required to provide municipal services to a new development. The use of DCs is to ensure pressures of increased development doesn’t fall completely on the existing tax base and ensures services keep up with where growth is occurring. The funds are contributed, however, become Township revenue to be used to support development. The Township, in accordance with the Development Charges Background Study, determines how the Development Charge contributions will be allocated.
- The Sunderland project was placed into the 2019 DC study in the event that the grant was not successful.
- Even though the grant was approved the Township will be able to use a portion of DCs to assist with this project. Significant time was spent to determine how much of this project was DC eligible. The DC portion is 65% of the net cost after the grant is deducted from the total cost. The amount that can be used must be substantiated by growth. The Township has a long list of underfunded projects and Development Charges are one source of revenue that helps support growth related projects. By using development charges where possible it lessons the tax burden that would result from acquiring new debt for the project. Borrowing costs escalate with inflation. Borrowing from committed reserves results in debt payments even when we borrow from our own reserves. We are working to ensure that we keep borrowing to a minimum on this project.
- Development Charges are received with each new development (residential, non-residential, etc.) within the Township. If the Township has low development, the prospects for future Development Charge collections to support growth will be limited. The Township needs to ensure a balance in their DC projects and focus on projects driven by growth.
- In 2024, the Township updated its Development Charge By-Law and the budget for the Sunderland Arena Renovation and Expansion Project was increased.
- The Lions Club has indicated that they will contribute up to $1,000,000 for this project, however, the confirmed funding level is dependent upon final approved project scope.
|