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HomeMy WebLinkAboutTR-47-98 Meeting: Date: Report #: Subject: REPORT il2 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Council Ff:; :y: 6t~ File # Q 7 Co '( Res.#C -,53cr-o;~ By-law # June 15, 1998 File#: I R-47-98 1998 Current Budget Timetable Recommendations: It is respectfully recommended to Council the following: 1. That Report TR-47-98 be received, 2. THAT Council endorse the proposed timetable for the 1998 Current Budget deliberations, 3. THAT the attached "Notice of Delay" for 1998 final tax notices be placed in the local newspapers, and on the internet home page for information, 4. THAT the Regional Treasurer, Mr. J. Clapp, be requested to advise of the imposed amount of revenue they have budgeted to receive from the Payment-in- Lieu sharing for the 1998 budget year in order that the Municipality can finalize the 1998 current budget, 5. THAT in recognition of the following: i) the severity of the impact to the Municipality by the 1055 of local revenue, ii) the required sharing of payments-in-lieu is over and above the Who Does What impact, iii) the impact from payments-in-lieu sharing is affecting those municipalities with Ontario Hydro facilities more severely, The Region of Durham be requested to limit their requirement for the payment-in- lieu sharing to a maximum of 25% in 1998, or $500,000, which ever amount is less, and 6. THAT the Region of Durham be thanked for their consideration of this matter. TR-47-98 Page 2 Background 1.0 Provincial Delays: As Council is aware, the Provincial delays in releasing the 1998 assessment information, along with the numerous legislation changes without supporting regulations, and inaccuracy in any numbers that have been released, have made it impossible for current budgets to be considered. As a consequence, the tax rates on which the municipal tax bills will be based, can not be calculated. 2.0 Regional Timetable: The Region of Durham is anticipating that it will be mid to late August before it can bring the final information to Regional Council for decisions on tax policy and the establishment of the Regional Tax rate for 1998. This timeframe is based on the Provincial information, such as the assessment roll, to be received in accordance with the latest announcement of mid June. This is also based on the ability to rely on the information released. 2.1 The Region has passed the Regional budget (@1.4%) on June 31998. The Region' was able to do this because they eliminated all the Provincial downloading numbers from the budget consideration. The net downloaded numbers, will be over and above the Regional budget which is under their control. 3.0 The Payment-in-Lieu The Municipality of Clarington is unable to set the current budget without knowing the amount of the payment in lieu transfer required by the Region of Durham as a result of the Provincial legislation, because of its significant value. The 1997 Ontario Hydro grant in lieu was approximately $2,000,000 as a local revenue source, and it is now required to be shared with the Region of Durham. 3.1 The exact formula for sharing is based on the respective tax rates that will be set by the Region and the Municipality. The Region can not set the tax rate until it has all of the Provincial numbers, and as a result, they are unable to confirm the exact sharing required. However, they have made an estimate based on the value of the downloaded services. 3.2 The impact at the local level of a 50% sharing or $1,000,000 would be an approximate impact of 10% on the average household tax bill. Even at the recommended maximum of the lesser of 25% or $500,000, the impact would be approximately 5% which is significant. Although the impact is significant, if the Region were to agree to freeze the impact at a maximum for 1998, it would allow the Municipality to prepare the current budget with some degree of certainty. It is also likely to be less than that allowed under the full sharing formula available to the Region. TR-47-98 Page 3 4.0 Municipality of Clarington Current BUdget The calculation of the tax rate for 1998 is to be based on the 1998 current budget. After the tax rate is set, the formulas must be entered into the computer system, and applied to each and every one of the new assessments. Legally the tax bills must be in the mail 21 days prior to the installment date. 4.1 IT15 anticipated that this process will not be smooth, given the degree of errors found in the Provincial preliminary assessment data. 4.2 Given the above, it is recommended that the current budget be presented at a special meeting of the General Purpose and Administration Committee meeting to be held on Friday, September 11, 1998, with the anticipated ratification at Council on Monday, September 14, 1998. It is anticipated that the first G.P.A meeting of August 31, following the recess, will not be sufficient time to process the tax calculations necessary from the Region and School Boards (assuming that they have been received in accordance with the latest timetable), and given that the tax run will be the first on the Vailtech System/ 4.3 IT15 recommended that, upon the approval of the current budget, the tax installment dates be anticipated on Friday, October 23, 1998 and the final installment on Friday, November 27, 1998. Respectfully submitted, Reviewed by, rie A Marano, H.BSc.,AM.C.T., Treasurer. ~ W.H. Stockwell. Chief Administrative Officer. MAM/pp _CJJa;r;'g';;n ONTARIO Attachment #1 THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET BOWMANVILLE, ONTARIO L 1 C 3A6 NOTICE OF DELAY 1998 FINAL TAX NOTICES The Municipality of Clarington is still awaiting data from the province which is critical in establishing the 1998 tax rates. Due to this delay the Municipality's final two installments are scheduled as follows: First Installment payable: Friday, October 23, 1998 Second Installment payable: Friday, November 27,1998 CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET. BOWI.4ANVlllE .ONTARIO .lle 3A6. (905) 623-3379. FAX 623-4169 @ RECYCLED PAPER