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Staff Report
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Report To: General Government Committee
Date of Meeting: January 4, 2021 Report Number: FSD-001-21
Submitted By:
Reviewed By:
File Number:
Trevor Pinn, Director of Financial Services
Andrew C. Allison, CAO
Resolution#: GG-030-21
By-law Number: 2021-004
Report Subject: Delegation of Authority to enter into Extension Agreements to the Treasurer
Recommendations:
1. That Report FSD-001-21 be received;
2. That the Council of the Corporation of the Municipality of Clarington delegate
authority to the Treasurer to enter into extension agreements pursuant to Section
378 of the Municipal Act, 2001, and;
3. That the By-law attached to Report FSD-001-21, as attachment 1, be approved.
Municipality of Clarington
Report FSD-001-21
Report Overview
Page 2
Staff are seeking approval from Council to delegate authority to enter into an extension
agreement for properties registered for tax sale. Once a tax arrears certificate has been
registered, only full payment of the cancellation price can be accepted. Payment must be
received within one year of the date of registration. A property owner may request an
extension agreement to extend this period. By delegating the authority to the Treasurer, this
will allow staff to work directly with property owners in hopes to avoid the tax sale process
1. Background
1.1 Section 378 of the Municipal Act, 2001, provides that after the registration of a tax
arrears certificate and before the expiry of one year following the date of registration, a
Municipality may authorize an extension agreement.
1.2 Without an extension agreement, property owners have one year from the date of
registration to pay the total cancellation price, which includes all taxes owing,
penalties/interest and legal fees. Partial payments cannot be accepted. An extension
agreement allows a qualified applicant to enter into an extension agreement to extend
the time before a tax sale may take place.
1.3 Changes made under Bill 68 (Modernizing Ontario's Municipal Legislation Act, 2017)
provided the ability for Council to delegate their authority to enter into an extension
agreement. With the passing of Bill 68, legislation was amended to no longer require the
passing of a by-law to authorize an extension agreement.
2. Comments
2.1 By delegating authority to the Treasurer to enter into an extension agreement, staff will
be able to work with property owners and expedite payment on tax arrears with the goal
of stopping the tax sale process. This allows property owners some privacy as it relates
to these matters, as currently an extension agreement would have to be approved by
council on an individual basis.
2.2 By entering into an extension agreement there is also the flexibility to receive payments
other than in one lump sum payment; this provides staff an additional tool to work with
residents who are having difficulty in making their payments.
2.3 If authority is not delegated, this can limit the time an extension agreement can be
entered. If the final days of the one-year expiry date doesn't coincide with a council
meeting, the deadline would be missed. The Municipal Act does not allow for a late
agreement and the tax sale process would continue.
Municipality of Clarington Page 3
Report FSD-001-21
3. Concurrence
Not Applicable.
4. Conclusion
It is respectfully recommended that council delegate authority to the Treasurer to enter
into extension agreements to assist in the Municipality's ability to collect outstanding
taxes and avoid a tax sale.
Staff Contact: Jessica James, Taxation Services Manager, 905-623-3379 ext. 2609,
jjames@clarington.net
Attachments:
Attachment 1 — Bylaw to delegate authority to enter into tax arrears extension agreements
Parties:
There are no interested parties to be notified of Council's decision.
Municipality of Clarington
Report FSD-001-21
Page 4
Attachment 1 to Report FSD-001-21
The Corporation of the Municipality of Clarington
By-law Number 2021-
Being a by-law to delegate authority to authorize the execution of tax arrears
extension agreements pursuant to sections 378 of the Municipal Act, 2001.
WHEREAS pursuant to section 23.1 and 23.2 of the Municipal Act, 2001, a local municipality
may delegate to a person certain of its powers under the Municipal Act, 2001; and
WHEREAS pursuant to section 378 of the Municipal Act, 2001, a local municipality may enter
into an extension agreement, extending the period of time in which a cancellation price is to be
paid; and
WHEREAS the Council of the Corporation of the Municipality of Clarington deems it
appropriate to enact this by-law for the purpose of delegating such duty.
NOW THEREFORE the Council of the Corporation of the Municipality of Clarington enacts as
follows:
The Treasurer is hereby delegated the authority to negotiate and execute tax extension
agreements on behalf of the Municipality of Clarington, subject to the following limitations:
a. The tax extension agreement must be requested by and entered into with any owner of
the land, the spouse of any owner of the land, any mortgagee, any tenant in occupation
of the land or any person the Treasurer is satisfied has an interest in the land, in
accordance with Section 378 of the Municipal Act, 2001; and
b. The tax extension agreement must be compliant with the requirements of Section 378 of
the Municipal Act, 2001;
c. The tax extension agreement can only be entered into after a tax arrears certificate has
been registered, and before the expiry of the one-year period.
This By-law shall come into force and effect upon the date of the final reading thereof.
By-law passed in open session this XX day of January, 2021.
Adrian Foster, Mayor
June Gallagher, Clerk