Standardization of Parks Levy
Appraisal Fee Structure (All Wards)
The Corporate Services Committee recommends the adoption of the following report (July6, 1998) from the
Commissioner of Corporate Services:
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 per
cent) 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:
(a)one fee structure for appraisal services undertaken in the calculation of the payment for cash-in-lieu of parkland
dedication;
(b)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
(c)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)
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Appendix "A"
Recovery of Costs Expended in the Provision of Appraisal Services
For the Calculation of Parks Levy Payments
Former
Municipality |
Cost Recovery |
Staff Appraisals |
Independent Fee Appraisal |
East York |
Staff appraisals are not done. |
Applicant supplies appraisal report for review by City staff. |
Etobicoke |
Costs not recovered |
Costs not recovered - City absorbs the cost of independent fee
appraisal. |
North York |
Costs not recovered |
Costs not recovered - Costs paid from Parkland Acquisition
Account. |
Toronto |
Full Cost Recovery -
Fee Schedule |
Full Cost Recovery - Fee Schedule |
Scarborough |
Costs not recovered |
Applicant provides the City with a cheque to pay the cost of
appraisal; or Applicant supplies appraisal report for review by City
staff. |
York |
Staff appraisals are not done. |
Applicant supplies appraisal report for review by City staff. |