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Home My WebLink About2025 - Development Charges Annual Treasurer's Statement �AYHA1t REPORT -� TREASURY DEPARTMENT �c rtunity Io�o�► TO: Mayor& Members of Council FROM: Lorne James CPA, CA, Treasurer DATE: June 25, 2026 REPORT: TR-14/26 SUBJECT: 2025 DEVELOPMENT CHARGES ANNUAL TREASURER'S STATEMENT PURPOSE To fulfil the reporting obligations under the Development Charges Act, 1997, as amended (DCA). BACKGROUND The Development Charges Act, section 43(1) states that: "The Treasurer of a municipality shall each year on or before such date as the council of a municipality direct, give the council a financial statement relating to development charge by-laws and reserve funds established under section 33". Paragraphs 12 and 13 of Ontario Regulation 82/98 indicate the information to be included in the Report. The Municipality collects Development Charges generally at the time of issuance of building permits, as per Section 26 of the D.0 Act, 1997. Section 43 of the DCA requires the Treasurer of the municipality to provide to Council an annual financial statement relating to the DC By-law and any reserve funds established under the DCA. Section 43 (2) of the DCA and O. Reg. 82/98 prescribe the information that must be provided in the statement. Specifically, the statement must provide the following: 1. A statement of the opening and closing balances of the reserve funds and any transactions relating to the funds (found in Appendix A- Development Charges Reserve Fund Summary); 2. A statement identifying all assets whose capital costs were funded under the DC By-law (found in Appendix B - Development Charges Project Finance Statement); 3. A description of each service and/or service category for which the reserve fund was established. If the fund was established for a service category, the services in the category; 4. The amount borrowed from the fund by the municipality and the purpose for which it was borrowed, and the interest accrued during the previous year; 5. The amount and source of the money used by the municipality to repay municipal obligations to the DC reserve funds; 6. A schedule that identifies credits recognized under section 17 and, for each credit recognized, sets out the value of the credit, the service against which the credit is applied, and the source of funds used to finance the credit; 7. For each service for which a DC is collected during the year, a. Whether, as of the end of the year, the municipality expects to incur the amount of capital costs that were estimated, in the relevant DC background study, to be incurred during the term of the applicable DC By-law. b. If the answer to subparagraph (i) is no, the amount the municipality now expects to incur and a statement as to why this amount is expected; 8. For each service for which a DC was collected during the year but in respect of which no money from a reserve fund was spent during the year, a statement as to why there was no spending during the year; 9. A statement as to compliance with subsection 59.1 (1) that no other charge has been imposed related to a development or a requirement to construct a service related to development, except as permitted by the Act or another Act. Furthermore, subsection 35 (2) and (3) of the DCA requires a municipality to spend or allocate at least 60 per cent of the monies in the reserve funds for each class and class of service at the beginning of each year. 10. The Treasurer's statement must be given to the Minister of Municipal Affairs and Housing by July 15 of the year following the reporting period. DISCUSSION The Municipality maintains 7 DC reserve funds, one for each service under the DC By-law 2025-51 and 2022-67. The Development Charges collected and interest earned in 2025 totaled $344,882.33. The Municipality utilized approximately $0.00 for DC capital projects, providing a year-end closing balance of$866,930.90. Details related to the opening and closing balances, as well as the total project costs funded from these reserve funds in 2025, are provided in Appendix A - Development Charges Reserve Fund Activity. The Municipality has not imposed, directly or indirectly, a charge related to a development or requirement to construct a service related to development except as permitted by the DCA or another act. The Municipality has not borrowed money, either externally or from other DC reserve funds, to pay for DC capital projects. There are also no outstanding credits to developers. As previously noted, the DCA requires municipalities to allocate or spend at least 60 percent of the monies in the reserve funds for each class and class of service at the beginning of each year. Table 1 outlines the 60 percent threshold required for each DC class and class of service and the associated allocation of future spending (commitments column in the table). The commitments include budget commitments approved through 2026 and prior capital budgets that have not yet been spent. Table 1: DC Allocation by Service Service Balance in Reserve 60% of Balance to DC Eligible Costs Fund at Beginning be Allocated (at a (Commitments and of Year minimum): Future Capital Projects Water— Ba ham $99,869.92 $59,921.95 $145,000.00 Water— Richmond $27,440.13 $16,464.08 $55,000.00 Waste Water $394,738.52 $236,843.11 $18,411,000.00 BD — Fire $0.00 $0.00 $2,080,000.00 BD — Parks and $0.00 $0.00 $1,074,200.00 Rec. BD — Roads $0.00 $0.00 $4,428,500.00 BD — Studies $0.00 $0.00 $197,700.00 Total $522,048.57 $313,229.14 $26,391,400.00 Table 2 provides a summary of the estimated DC-related capital costs expected to be incurred by the Municipality over the life of the DC by-law. For each service for which DCs were collected during the year, it is acknowledged that no changes to capital cost estimates were identified in the 2022 and 2025 DC background study. Table 2: DC Capital Costs Expected to be Incurred by Service Service/ Class of Service Amount of Capital Cost Amount of Capital Costs Estimated in D.C. Study Estimated to be Incurred Are Anticipated to be During Life of By-law Incurred During Life of By- law Y/N Water— Ba ham Yes $115,000.00 Water— Richmond Yes $30,000.00 Waste Water Yes $18,411,000.00 BD — Fire Yes $1,280,000.00 BD — Parks and Rec. Yes $424,200.00 BD — Roads Yes $2,100,500.00 BD — Studies Yes $102,700.00 Total $22,463,400.00 Table 3 summarizes the reasons no DC funds were spent on services with DC collections. Table 3: Statements related to the Amount Collected During the Year Where No Money was Spent Service/ Class of Service Reason for No Spending of D.0 Funds Collected During the Year Water— Bayham The Municipality did not have any planned expenditures for Water— Ba ham in 2025. Water— Richmond The Municipality did not have any planned expenditures for Water— Richmond in 2025. Waste Water The Municipality did not have any planned expenditures for Waste Water in 2025. BD — Fire The Municipality did not have any planned expenditures for BD - Fire in 2025. BD — Parks and Rec. The Municipality did not have any planned expenditures for BD — Parks and Rec. in 2025. BD — Roads The Municipality did not have any planned expenditures for BD - Roads in 2025. BD — Studies The Municipality did not have any planned expenditures for BD - Studies in 2025. STRATEGIC PLAN 3.2: Quality of Governance > To continually demonstrate financial responsibility to the community. Initiative(s): Not Applicable. ATTACHMENTS 1. 2025 Development Charges —Water, Wastewater, and Building Development. RECOMMENDATION 1. THAT Report TR-14/26 re 2025 Development Charges Annual Treasurer's Statement be received for information. Respectfully submitted: Lorne James, CPA, CA Treasurer Municipality of Bayham Development Charges Reserve Fund Activity-For the Year 2025 Appendix"A" Report TR-14/26 Account Description Balance 2025 2025 2025 2025 Balance Interest # 1-Jan-25 Collections Interest Debt Repayment Capital Expenses Dec-31-25 Rate 2400 Water -Bayham $ 99,869.92 $ 35,797.83 $ 2,846.29 $ - $ - $ 138,514.04 2.85% 2401 Water -Richmond $ 27,440.13 $ - $ 782.04 $ - $ - $ 28,222.17 2.85% 2402 Waste Water $ 394,738.52 $ 237,191.12 $ 11,250.05 $ - $ - $ 643,179.69 2.85% 2404 Building Development Fire $ 14,253.75 $ 14,253.75 2.85% Parks and Recreation $ 8,552.25 $ 8,552.25 2.85% Roads $ 30,788.10 $ 30,788.10 2.85% Studies $ 3,420.90 $ 3,420.90 2.85% $ 522,048.57 $ 330,003.95 $ 14,878.38 $ 866,930.90