HomeMy WebLinkAboutFND-020-11 Clarington REPORT
FINANCE DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: September 26, 2011 Resolution#: "°� By-law#:
Report#: FND-020-11 File#:
Subject: TAX WRITE-OFFS UNDER SECTION 354(2)(b), 354(4) (b), & 353(3)
OF THE MUNICIPAL ACT, 2001
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-020-11 be received; and
2. THAT the Treasurer be authorized, under Section 354(2)(b), 354(4) (b), & 353(3)
of the Municipal Act 2001 to write-off taxes as uncollectible and charge back the
proportionate amounts to the Region of Durham and the School Boards for those
properties listed in Attachment "A".
Submitted by: �'i-1 �' �'. C- '�% f Reviewed by:
Nancy Taylor, BBA, CA. Franklin Wu,
Director of Finance/ Chief Administrative Officer
Treasurer
NT/hjl
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
REPORT NO.: FND-020-11 PAGE 2
1. BACKGROUND
1.1 Under Section 354(2) of the Municipal Act, 2001, the Treasurer shall remove
unpaid taxes from the tax roll if the taxes are no longer payable as a result of a
decision of court.
1.2 Under Section 354(4) of the Municipal Act the Treasurer may write-off taxes
without first conducting a tax sale if the Treasurer recommends to Council that a
tax sale would be ineffective or inappropriate.
1.3 Section 353(3) of the Municipal Act, 2001, allows the Municipality to charge back
the proportionate share of any taxes written off to the Region and applicable
school board.
1.4 The purpose of this report is to advise Council that a decision of a Court applies to
the write-offs identified in Attachment "A", properties #1 to #5. The Treasurer is
also seeking Council's approval under Section 354(4) of the Municipal Act, 2001,
for properties #6 and #7 shown on Attachment "A".
2. COMMENTS
2.1 Properties identified on Attachment "A", as numbers #1 to #3, located in
Bowmanville previously owned by a defunct company were vested on February
22, 2011 by decision of the Ontario Superior Court of Justice, based on provisions
of an old subdivision agreement.
2.2 Property #4, a walkway located on Lillian Crescent in Newcastle, was vested on
July 25, 2011 by decision of the Ontario Superior Court of Justice, again based on
provisions of an old agreement.
2.3 Property #5, a piece of property which was .01 acres was located in the middle of
the boulevard located at Mearns and Concession was deeded to Clarington by the
owners on June 30, 2011, based on provisions of old agreements. The legal
department has overseen the ownership transfers of these five properties. In
these cases, companies involved were no longer active.
2.4 Properties #6 and #7 are two properties that are private roads for properties
located on East Beach Road/Cove Road and the second one on Rundle Road.
Conducting a tax sale would be inappropriate as access cannot practically be then
restricted to the other homeowners relying on these private roads for access to
their properties. In this case, however, it is not in Clarington's interests to assume
ownership. The taxes annually are relatively minor and are uncollectable at this
time.
REPORT NO.: FND-020-11 PAGE 3
3. CONCLUSION
3.1 The financial impact for the above write-offs for the municipality plus penalty
amounts and other charges, which were legal and other fees relating to attempts
to selling the property through the tax sale process, are an impact of$94,460.08.
All seven of these properties are very unusual circumstances. The legal
department has been integral to assisting in resolving these long-standing
issues.
4. CONCURRENCE — not applicable
CONFORMITY WITH STRATEGIC PLAN
The recommendations contained in this report conform to the general intent of the
following priorities of the Strategic Plan:
_ Promoting economic development
X Maintaining financial stability
_ Connecting Clarington
_ Promoting green initiatives
Investing in infrastructure
_ Showcasing our community
_ Not in conformity with Strategic Plan
Staff Contact: Nancy Taylor, B.B.A., C.A., Director of Finance/Treasurer
Attachments: Attachment "A" —Write-Off Report 2011
Attachment "A" to FND-020-11
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