Cash-in-lieu of Parkland Funds Policy

Policy Statement

The City shall ensure the consistent and wise use of all funds collected for the provision of park and recreational purposes, pursuant to Sections 42 and 51.1 of the Planning Act, by defining the purposes for which ‘cash-in-lieu’ may be used and by establishing the mechanisms by which the ‘cash-in-lieu’ funds are accessed and accounted for was approved by Council in February 9, 2011.

Cash-In-Lieu of Parkland Funds Policy Amendments, August 31, 2022.

 Purpose

The purpose of this policy is:

• To identify the purposes for which funds, in the City’s ‘cash-in-lieu’ of parkland accounts, may be used.
• To ensure that funds in ‘cash-in-lieu’ accounts are only used for eligible projects.
• To ensure that funds accumulated in ‘cash-in-lieu’ accounts associated with an individual ward are used only for eligible projects in that ward unless two or more of the Ward councillors agree to contribute to a common project that benefits one or more of the Wards.
• To identify the circumstances under which Senior Staff and Ward Councillors have delegated authority from Council to access and use funds in ‘cash-in-lieu’ accounts.
• To ensure that users and stakeholders have a complete understanding of the responsibilities and full knowledge of the policy content.

Application

This policy applies to the Council of the City of Ottawa, Ward Councillors and City Staff.

Policy Requirements 

1. Cash-in-lieu shall only be used for eligible projects permitted by the Planning Act as further defined by this Policy.
2. Cash-in-lieu funds collected through the development review will be allocated as follows:
   1. Sixty percent (60%) of the funds paid will be allocated to use in the Ward in which the development is located and forty percent (40%) of the funds paid will be allocated for citywide purposes.
   2. in a special administrative area identified in the Parkland Dedication By-law, one hundred per cent (100%) of the funds paid will be allocated to use in the special administrative area where the development is located.
3. Cash-in-lieu funds collected and allocated to both Ward and citywide use shall be free for use for any eligible project defined by this policy except for the following:
   1. Funds that are subject to an appeal. These funds shall not be committed to or used for any purpose until the appeal is resolved. 
   2. Funds that are collected through the development process in new communities and that are required to contribute to the acquisition of specific parkland already identified in a later phase of the community’s development. These funds shall be reserved for that purpose only and may not be used for any other eligible purpose.
   3. Funds collected for a development project that is abandon will be returned to the proponent unless they are committed to a specific eligible project. If they are committed to a project, the funds will be permanently credited to the development rights for that address.
4. Cash-in-lieu funds collected and allocated to both Ward and citywide use shall not be used for any purpose that is an ‘ineligible project’ as defined by this policy.
5. Cash-in-lieu accounts cannot be used in a manner that could result in negative balances at any time. Projects selected to be paid from CILP accounts must not have the potential to exceed available funds in the account at the time the project is chosen.
6. This policy does not apply to funds collected pursuant to the Development Charges Act.
7. Cash-in-lieu funds collected and allocated to both Ward and city-wide use shall not be used to offset, or as a substitute for, normal yearly budgets for parks and recreation growth, repair or renewal. CILP funds are to be view as supplemental to regular budgeting to support more projects or projects with larger scope than would have been possible using regular budgets.

Responsibilities

Delegation for use of cash-in-lieu funds

1. Subject to policies 1-5 above the Council of the City of Ottawa hereby delegates authority to Staff and Councillors to establish budgets, access cash-in-lieu funds and approve expenditures of cash-in-lieu funds for ‘eligible projects’ subject to the following:
   1. Delegates authority to the General Managers of Parks, Recreation and Cultural Services and Infrastructure Services to access and use cash-in-lieu funds for any eligible project associated with an existing park or for the creation of a new park that is not associated with the development review process. This delegation is subject to the following:
      1. the use of cash-in-lieu funds from a Ward account requires the concurrence of the Ward Councillor;
      2. the acquisition of land requires the concurrence of the Director, Real Estate Partnership and Development and the General Manager, Planning and Growth Management is to be advised;
      3. the General Manager shall confirm the availability of funds with the General Manager, Planning and Growth Management prior to committing funds to any project.
   2. Delegates authority to the General Manager, Planning and Growth Management to access and use cash-in-lieu funds for any eligible project associated with the development review process including the acquisition of parks in new communities. This delegation is subject to the following:
      1. the use of cash-in-lieu funds from a Ward account requires the concurrence of the Ward Councillor;
      2. the acquisition of land requires the concurrence of the Director, Real Estate Partnership and Development and the General Manager, Parks, Recreation and Cultural Services is to be advised.

Monitoring and Reporting

1. The General Manager, Planning and Growth Management will maintain a record of all cash-in-lieu funds paid and allocated to Ward and to citywide use and a record of all funds subject to appeal or intended for specific land acquisition projects in new communities. The General Manager may appoint a delegate to maintain this record.
2. The General Manager, Planning and Growth Management or delegate will provide the General Manager, Parks, Recreation and Cultural Services with a bi-monthly copy of the record of available cash-in-lieu funds.
3. The Treasurer will present a cash-in-lieu of parkland financial report to the Planning Committee and Council in the first quarter of each year. The report will contain a statement that summarizes the status of the various cash-in-lieu reserve funds, interest earned on each account and fees collected on a ward and city-wide basis. The statement will document land acquired using the funds, basic details of all works paid for by the funds, costs for each project, and information on where other funds that went to support these projects came from.
4. The Treasurer will inform Councillors of cash-in-lieu account balances quarterly via memorandum and the memorandum will be published as Information Previously Distributed on the next Planning Committee Agenda.
5. Post budget, the General Manager of Parks, Recreation and Cultural Services in conjunction with the Infrastructure Services General Manager will provide each Councillor lists of project in the four-year schedule escalation window of prioritized forecast works identified as part of renewal planning and programming undertaken in accordance with the City's Comprehensive Asset Management Policy and programs for the Councillors' consideration for funding using ward cash-in-lieu of parkland funds.

Legislative Authorities 

Ontario Planning Act, R.S.O. 1990, CHAPTER P.13

cash-in-lieu – means the payment of funds equivalent to the value of the amount of land that the City would otherwise have been entitled to require to be conveyed for park purposes as part of a development. The payment of cash-in-lieu is usually required as a condition of development approval and is assessed as the value of the land the day before the City grants approval for the development, as specified in the Planning Act.

citywide – means something having relevance to or providing services for the population of the City as a whole or a part of the City that is larger than a single ward.

eligible project – means:

• Acquisition of land for public park purposes
• Capital projects for the development of new public parks which may include any associated site preparation and drainage; the provision of park facilities, such as, play equipment, sports fields and pathways: or the provision of recreation facilities, such as community centres, indoor pools and arenas.
• Capital projects to increase the capacity of existing public parks and/or recreation facilities to accommodate more intensive public use; the provision of additional park facilities, for example play equipment, splash pads and site furniture; and /or the provisions of additional recreation facilities, for example the expansion or upgrading of program spaces in community centres, indoor pools and arenas.
• The non-growth component of growth-related capital projects, for Parks Development and Recreation Facilities, identified in the City’s Development Charges Background Study.
• Projects for repair, renewal and lifecycle replacement in relation to fixed recreation and park assets and the total project costs (planning, design and implementation) associated with these works.
• Projects within prioritized forecasts or work plans of scheduled works identified as part of renewal planning and programming undertaken in accordance with the City's Comprehensive Asset Management Policy but unfunded as part of the current year's normal budget, may be brought forward for implementation using CILP funds but require no pay-back from future renewal budgets. The schedule escalation window will be limited to no more than four years ahead of the current year respecting the need for full scope and design requirements in setting targeted implementation expectations.

ineligible project - means:

• Any non-capital costs (studies, ongoing operations, maintenance. etc.).
• Any project that will require operating budgets.
• Any costs associated with the acquisition of non-fixed or portable recreational assets for example sports equipment, exercise equipment etc.
• Any cost or work associated with facilities or property not owned by the City.
• Any capital project associated with facilities operated through a public private partnership to deliver City recreational services.
• Any capital project associated with land that is not either one of a public park or being used for recreational purposes.
• Plaques, engravings etc. acknowledging the funding source as a cash-in-lieu of parkland account are not permitted on items with a total value of less than $10,000.