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Report To: General Government Committee
Date of Meeting: September 8, 2025 Report Number: PUB-011-25
Authored By: Julie Mitchell, Director, Community Services
Submitted By: Lee-Ann Reck, Deputy CAO, Public Services
Reviewed By: Mary-Anne Dempster, CAO
By-law Number: Resolution Number:
File Number:
Report Subject: Orono Town Hall Loan Repayment
Recommendations:
1.That Report PUB-011-25, and any related delegations or communication items, be
received;
2.That the Deputy CAO/Treasurer, Finance and Technology, be delegated authority to
amend the repayment terms on the balance ($52,500) of the loan up to a maximum
of 15 years; and
3.That all interested parties listed in Report PUB-011-25, be advised of Council’s
decision.
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Report Overview
This report responds to Council’s direction regarding the Orono Town Hall Board’s (OTHB)
request for relief from the outstanding balance of the interest-free loan issued for
accessibility improvements at the Hall. The project, initiated in 2018, was funded through a
combination of municipal capital reserves, a federal grant, and a $75,000 loan agreement
with the OTHB. To date, the Board has repaid $22,500, leaving a balance of $52,500.
Staff have reviewed the request and considered options, including maintaining the current
repayment schedule or amending the terms to extend the repayment period at a reduced
annual rate. Extending the loan would have minimal impact on municipal reserves, and staff
will continue to support the OTHB in seeking alternative funding opportunities.
The recommendation is to delegate authority to the Deputy CAO/Treasurer to amend
repayment terms as appropriate, up to a maximum of 15 years.
1. Background
1.1 On June 2, 2025, representatives from the Orono Town Hall Board (OTHB) presented
at GGC requesting consideration for a reduction of the outstanding debt from $75,000
to $35,000. Council passed Resolution #GG-111-25:
1.1.1. That the Delegation of Brad Smith and Deb Patrick, Orono Town Hall Board,
Regarding a Request to Reduce Elevator Loan Repayment, be referred to Staff;
and
1.1.2. That the payment for the interest-free elevator installation loan be postponed,
pending the outcome of the report back from Staff.
1.2 The accessibility improvements project at Orono Town Hall was initiated in 2018 at the
request of OTHB. Capital funding in the amount of $295,007 was approved in the 2019
municipal budget for this project. The municipality was successful in an Enabling
Accessibility Fund (EAF) application in 2019, securing $88,007 in federal funding for
the project. The total municipal capital reserve funding, less the EAF grant was
$207,000.
1.3 Due to higher than anticipated estimates, an additional $152,000 was approved as part
of the 2020 capital budget program with agreement from the OTHB they would support
the project through an interest-free loan in the amount of $75,000 over 10 years.
1.4 Tender CL2020-2 was awarded in the amount of $447,462 in April 2020.
1.5 Due to several unknown conditions, an additional $50,000 was requested and
approved in November 2020 fully funded through municipal capital budget.
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1.6 OTHB submitted installment payments of $7,500 in 2022, 2023 and 2024 totalling
$22,500. The current balance of the $75,000 initial loan is $52,500.
1.7 As part of the Hall Board Sustainability initiative, staff are working with all Community
Hall Boards on updated Municipal Capital Facility Agreements. This includes free use
of the halls by the municipality to provide community programs at underutilized times.
Booking times will be negotiated with the individual community hall to ensure there is
no impact to the board in terms of loss of revenue. If suitable times are not available,
staff will look for alternative spaces to expand programming into rural areas.
1.8 As part of the Community Grant program, Community Hall Board receive an annual
operating grant to help off-set operational costs. OTH receives $4,800 annually.
2. Consideration/Comments
2.1 In discussions with the OTHB, concerns were raised about making the annual loan
repayments due to the added costs associated with becoming incorporated, as well as
the municipal rental fees being removed.
2.2 Staff considered several options including reducing the remaining balance of the loan
as requested. The municipality has several capital contribution agreements with similar
organizations for interest-free loans. These funding agreements often contribute to the
decision to proceed with the project and/or scope of the project.
2.2.1. Option 1 – continue with the current loan repayment terms of $7,500 per year
(7x$7,500 = $52,500)
2.2.2. Option 2 – amend the current terms of the loan repayment to a lower annual
amount, that is to the satisfaction of the both the Treasurer and the OTHB,
resulting in an extending the term of the loan. For example, reducing the annual
amount to $5,000 would result in 11 payments or reducing by 50% to $3,750,
would result in 14 payments.
2.3 Option 2 is the recommendation of staff to alleviate some of the financial pressures
raised by OTHB.
2.4 Staff will also work with the OTHB to identify alternative funding options and support
the OTHB with external funding applications.
3. Financial Considerations
3.1 OTHB submitted installment payments of $7,500 in 2022, 2023 and 2024 totalling
$22,500. The current balance of the $75,000 initial loan $52,500.
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3.2 Amending the loan repayment terms to a longer repayment schedule will have minimal
impact on the capital reserve forecast.
3.3 The history of the funding for the capital project is included in this chart for reference.
Project Funding History Value Funding source
2019 Capital Budget $207,000 Municipal Capital Reserve
EAF Grant $88,007 Federal Grant
2020 Capital Budget $77,000 Municipal Capital Reserve
Orono Town Hall Board $75,000 Interest free loan to Orono
Town Hall (funded through
capital reserve)
2020 Additional Capital $50,000 Municipal Capital Reserve
Total Project Cost $497,007
4. Strategic Plan
4.1 The recommendation aligns with the Strategic Plan Objective: To be a leader in the
delivery of effective and meaningful municipal services and expected result: Finances
and Operations are efficiently and responsibly managed.
5. Climate Change
Not Applicable.
6. Concurrence
This report has been reviewed by the Deputy CAO/Treasurer, Finance and Technology,
who concurs with the recommendations.
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7. Conclusion
7.1 The capital project was approved based on the funding agreement with the OTHB as
well as grant funding. This is type of agreement is in place with other organizations.
After careful consideration, it is respectfully recommended that the terms of loan be
extended to support the OTHB request.
Staff Contact: Julie Mitchell, Director, Community Services, 905-623-3379 ext. 2502 or
jmitchell@clarington.net.
Attachments:
Not Applicable
Interested Parties:
The following interested parties will be notified of Council's decision:
Orono Town Hall Board