July 6, 1998
To:Corporate Services Committee
From:Commissioner of Corporate Services
Subject:Standardization of Parks Levy Appraisal Fee Structure (All Wards)
Purpose:
To implement, for the new City, a standardized fee structure for appraisal services
undertaken in the calculation of the parks levy payment in accordance with Section 42 of the
Planning Act.
Financial Implications:
The City's cost recovery will be improved if a standardized fee structure is implemented for
the new City for appraisal services undertaken when calculating a parks levy payment.
Recommendations:
It is recommended that:
(1)one fee structure for appraisal services be implemented for the new City for all types of
developments that may be subject to a parks levy calculation;
(2)the fee shall be calculated on the basis of Two Hundred and Fifty Dollars ($250.00) plus
One Dollar ($1.00) per square metre of "building area" to a maximum amount of Six
Thousand Dollars ($6,000.00) or Twenty Percent (20%) of the amount charged for the parks
levy, whichever is the lesser and in no case shall the fee be less than $250.00;
(3)the fee schedule be reviewed periodically to ensure reasonable cost recovery;
(4)this authority supersede any previous authorities, statute, municipal code or practices
that may have been in effect in the former municipalities; and
(5)the appropriate City Officials be authorized to take the necessary action to give effect to
the foregoing, including the introduction of any bills in Council.
Background:
Currently, the former municipalities of the new City have different policies and practices
regarding the recovery of costs expended in the provision of appraisal services undertaken
for lands that are subject to a parks levy payment, resulting in less than full cost recovery for
the City. A standardized fee structure for appraisal services, if implemented for the new
City, would improve the recovery of these costs by the City. This report proposes the
establishment of a standardized fee structure for appraisal services for the calculation of a
parks levy payment in the development or redevelopment of land. The Operating Budget for
the Facilities and Real Estate Division included increased revenue as a result of this
proposal.
Comments:
An overall review has been undertaken for a harmonized Parkland Dedication By-law. A
report seeking Council's approval of the principles to be contained in a harmonized Parkland
Dedication By-law is to be considered by the Economic Development Committee for its
meeting scheduled for July 17, 1998 and by City Council for its meeting on July 29, 1998.
All the former municipalities, with the exception of Metro, have parkland dedication
by-laws in place. However, policies and practices differ, including the recovery of costs
expended in the provision of appraisal services, resulting in less than full cost recovery for
the City.
Section 42 of the Planning Act provides the City with the authority to require a parkland
dedication upon the development or redevelopment of land. Both the Municipal Act (Section
220.1) and the Planning Act (Section 69) allows the Council of the municipality to establish
a tariff of fees for the processing of applications made in respect of planning matters, which
tariff is designed to meet only the anticipated cost of the municipality in respect of the
processing of each type of application provided for in the tariff.
The practices undertaken by the former municipalities with respect to the recovery of costs
expended in the provision of appraisal services have been reviewed and are inconsistent
respecting full cost recovery. Appendix "A" sets out the former practices. The former City of
Toronto had a policy that all appraisal reports be conducted or commissioned by City staff
and had a fee structure for appraisal services undertaken in the calculation of the payment for
cash-in-lieu of parkland dedication which resulted in full cost recovery. This model has been
in place for several years with minimal opposition to the charging of a fee for appraisal
services and has provided the City with full cost recovery of appraisal services undertaken,
whether the appraisal work is undertaken by staff appraisers or where, the situation warrants,
by independent fee appraisers.
In an effort to eliminate discrepancies and inconsistencies in policy and practices that
currently exist and to ensure full recovery of costs of appraisal services undertaken for lands
that are subject to a parks levy payment, a standardization of a parks levy fee structure for
appraisal services should be applied across the new City utilizing the best practices of the
former municipalities. The following fee structure is being recommended to be implemented
for the new City:
- one fee structure for appraisal services undertaken in the calculation of the payment for
cash-in-lieu of parkland dedication;
- the appraisal services fee shall be calculated on the basis of $250.00 plus $1.00 per square
metre of "building area" to a maximum of $6,000.00 or 20% of the amount charged for
the parks levy, whichever is the lesser and in no case shall the fee be less than $250.00;
and
- the fee schedule be reviewed as necessary to ensure reasonable cost recovery.
Conclusion:
The proposed policy will eliminate discrepancies and inconsistencies in policies and
practices that existed in the former municipalities and provides for the recovery of costs for
appraisal services undertaken in the calculation of the parks levy payment. This report has
been prepared in conjunction with staff in Economic Development, Culture and Tourism and
Legal who are formulating a harmonized Parkland Dedication By-law.
Contact Name:
Luba Tymkewycz, 392-7207, Fax: 392-1880, ltymkewy@city.toronto.on.ca, (cs98059.wpd)
Margaret Rodrigues
Commissioner, Corporate Services
APPENDIX "A"
Recovery of Costs Expended in the Provision of Appraisal Services
For the Calculation of Parks Levy Payments
