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REPORT #5
CORPORATION OF THE TOWN OF NEWCASTLE
40 TEMPERANCE STREET
BOWMANVILLE, ONTARIO
L1C 3A6 TELEPHONE 623-3379
REPORT TO THE COUNCIL MEETING HELD MARCH 25 1985
ADMIN. 20 - 85
SUBJECT: TRENDS IN PROVINCIAL TRANSFER vAYMENTS
RECOMMENDATIONS:
It is respectfully recommended that Council receive this
report for information.
BACKGROUND AND COMMENT:
With the recently announced general transfer payments, a copy of which was
previously distributed, it is appropriate for staff to comment on trends that
may be emerging with respect to transfer payments from provincial sources.
As members of Council are well aware, the Town receives various
forms of Provincial support in terms of both conditional and
unconditional grants. Subsidy allocations from M.T.C. in 1985 are
4.1% above the 1984 level. As is rioted in Mr. Dupuis' March 13th
memorandum, the 1985 budget approved by Council was somewhat over the 1984
level and therefore adjustments to recognize the increase will not be necessary.
While the Town has not yet formally received word, it is anticipated
that our general transfer payment will be approximately 2% above the
allocation of 1984. This allocation is only fractionally above that
which was anticipated in terms of the budget preparation. As such
there is no need to consider any adjustments to the 1985 budget as
previously approved by Council.
These announcements reflect recent trends in terms of
municipal finance.
ADMIN. 20 - 85 -2-
Between the years 1981 and 1983 inclusive, cverall Municipal expenditures
increased approximately 23.3% generally across the Province. At the
same time, property tax revenues have increased across the Province
by 21.5%. Unconditional grants nave increased 14.1% and payments in
lieu have increased by 17.1%. Across the Province, user fees and
other local revenues have increased by 19.9%. The largest increase
Province -wide in transfer payments came in the area of conditional
grants. In the time period 1981 - 1983 inclusive, conditional grants to
i Municipalities increased by 33%. By the end of 1983 conditional grants
had grown to 1.5 billion dollars, or 21.4% of all municipal revenues.
These figures, of course, exclude tranfers to School Boards.
It is apparent from the above that municipal officials, both staff and
elected, must closely monitor the availability of conditional grants
if we are going to, maximize our return to the Corporation. While not
every conditional grant meets the needs of the municipality, staff
will continue to monitor programs to ensure that those conditional
grants available that meet the needs of the Corporation are incorporated
into the financial plans of the Town.
Al of which is respectfully submitted,
DSJ:nof David S ohnston, M.C.I.P.
Chief Administrative Officer