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HomeMy WebLinkAboutAdmin 70-84CORPORATION OF THE TOWN OF NEWCASTLE 2`a) 40 TEMPERANCE STREET BOWMANVILLE, ONTARIO L7 C 3A6 REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING HELD NOVEMBER 5 1984 ADMIN. 70 - 84 SUBJECT: RECOMMENDATIONS: PRIORITIES 1985 TELEPHONE 623-3379 It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That Administrator's Report ADMIN. 70 - 84 be received; 2. That Council authorize staff to consider as part of the 1985 current budget and capital forecast the following items: a) Budgeting $67,000 in 1985 towards the Bowmanville Memorial Hospital Renovation Expansion Fund; b) Recommending to the incoming Council for 1986 to 1988 that similar contributions be made in the years 1986 and 1987 for a total contribution from the Town of Newcastle of $201,000 over three years; c) Continuing to take maximum advantage of subsidies available through the Ministry of Transportation and Communications; d) Tabling any consideration in the funding of a new Bowmanville Arena until the feasibility study is completed; 3. a) That Council establish a policy that any monies in excess of $400,000 in the general surplus from 1984 and subsequent years be transferred to the Administrative Improvement Reserve Fund; b) That during 1985 Council select a preferred site for a new administrative centre. BACKGROUND AND COMMENT: Part of the preparation of the 1985 budget is to identify priorities for 1985 and beyond. Over the past three years there have.been many demands for financial assistance. Such demands have gone far beyond the ADMIN. 70 - 84 -2 Municipality's capability to fund same. As such, there is a need to set priorities. Certainly the final time for setting priorities is at the approval of budgets. However, I believe it appropriate in terms of good corporate planning to provide some direction to staff as to what those capital priorities might be. The list of priorities is not intended to be exhaustive or complete but rather a highlighting of those items of a capital nature that have not been previously or subsequently addressed through individual reports. Recommendations 2 (a) and (b) deal with the earlier request of the Bowmanville Memorial Hospital Foundation which was presented to the General Purpose and Administration Committee of January 16th 1984. On page 6 of the submission the Foundation requests that 25% of the local funding requirement be funded by the municipality. The directorate of the Foundation suggested that of the $600,000 requested that $400,000 be generated from Ontario Hydro Impact Fund and $200,000 be raised through normal grant structures within the Municipality. The funding drive for the Hospital improvements is scheduled to commence in November 1984. It would therefore be an appropriate time to deal with that portion of the request dealing with a possible municipal grant. At this point in time, Town staff are liaising with Hospital officials to deal with such matters as road closings, servicing and site plan. In accordance with Council's direction, staff are also meeting with Hydro and Hospital representatives to collect background information prior to reporting back to the Hydro Liaison Committee on possible Hydro impact. The earliest that a report to the Hydro Liaison Committee would be available will be in December of this year. The staff recommendation of a municipal grant of $201,000 over three years is not the only contribution that the Town would be making to the project. It is estimated that the market value of the land subject to the road closing would exceed $50,000. In addition, staff have spent many hours reviewing site plans and checking out other development issues. All in all a contribution of $201,000 plus land plus staff time would represent an investment in excess of $250,000. The suggested municipal grant plus land and staff time would represent the direct contributions of the Town. All servicing and site plan costs would be the responsibility of the Hospital. ADMIN. 70 - 84 -3- If Council adopts recommendations 2(a) and (b) this would still leave Council free to negotiate additional financial assistance Trom Ontario Hydro based upon the impact of the Hydro Generating Station on the provision of services from the Hospital. For the information of Committee members, other recent hospital expansions in the Region have generally been supported by the local municipality. Most recently Uxbridge provided $150,000 towards the expansion of the Cottage Hospital (total cost $1,000,000), and Scugog Township which contributed $175,000 towards the expansion of the Scugog Memorial Hospital over a 3 year period (total cost of project was $3,360,000). Recommendation 2 (c) identifies the most cost efficient approach in dealing with the improvement of our roads system within the Town. At this point in time, the province has not given any indication if there will be an increase in the subsidy levels for road maintenance or capital construction. The tabling of any consideration of funding of a new Bowmanville arena as suggested in recommendation 2 (d) is necessary until the feasibility study is completed. Recommendations 3 (a) and (b) are brought forward at this time in response to the likelihood of substantial population growth being generated in the Town. The current facilities have just about reached or in some instances exceeded their capacity to accommodate staff and services. From previous studies, discussions at Council and certainly at the staff level, it is apparent that there is a need to address this issue. If we do not take a .corporate planning approach to this issue, the Town may be forced into short term solutions that may prove very costly in the long run. Currently, the Town has a balance of approximately $547,000 set aside in the Administrative Improvements Reserve Fund. This is viewed as a first step towards a new Administrative Centre. Recommendation 3 (a) provides a further step towards the funding of a new administrative centre. ADMIN. 70 - 84 -4- As development occurs and the municipality's services expand there is a need to plan for the administrative future of the Town. It is recognized that such planning takes time and requires many decisions to be made as well as substantial financial resources. By adopting recommendation 3 (a) any surplus above $400,000 would automatically be directed to the Administrative Reserve Fund unless otherwise directed by Council. The financial move suggested in recommendation 3 (a) will not fund in itself a new administrative centre. It will, however, augment other financial arrangements that will be necessary and stabilize the budget process. It should be noted in recommending this approach that any surplus from year to year has in the past been used to avoid borrowing money to operate the municipality until tax payments are received in the subsequent year. Recommendation 3 (b) suggests that Council select an appropriate site for such a Centre. The recommendation alone will not necessarily cost the Town money. It is, however, a very important decision with respect to the future of the Town. From the previous feasibility studies the Town has a reasonable idea of the space requirements for Town offices. However, until a site is identified, discussions of the specifics of a new administrative centre will be difficult. The current Town Hall has served the needs of the citizens since 1904. It is hoped that with diligent planning of new facilities the future needs of the citizens can be equally well served. This report attempts to provide a realistic framework within which municipal corporate planning can take place. Respectfully submitted, DSJ:nof David S. Johnston, Chief Administrative Officer