HomeMy WebLinkAboutTR-106-97 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT DN:TR-106-97
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Meeting: File #
Date: DECEMBER 8, 1997
Res. #
Report #: TR-106-97 File #: By-law #
Subject: PAYMENTS-IN-LIEU OF TAXES
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report TR-106-97 be received;
2. THAT the Ministry of Municipal Affairs be advised that the Municipality of
Clarington is opposed to the sharing of grants-in-lieu.
3. THAT Claudette Cain, Mayor, City of Gloucester be informed of Council's
decision.
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BACKGROUND AND COMMENTS:
1.0 At the Council meeting of November 3, 1997, Council received correspondence
(Attachment A) from the Mayor of the City of Gloucester regarding payments-in-lieu of
taxes. The correspondence was referred to the Treasurer for review with a report back to
Council.
1.1 The Fair Municipal Finance Act (Bill 149 Part 2), is proposing to give the Minister of
Finance regulatory power to govern the sharing of payments-in-lieu among municipalities
and school boards, subject to a future decision on sharing ratios.
1.2 This will have a substantial impact upon the Municipality of Clarington due to the
significant amount of the payment-in-lieu received by Clarington as a result of the
Darlington Nuclear Generating Station (in excess of $2 million per year). Currently, these
funds are used solely by the Municipality for local purposes.
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REPORT TR-106-97 PAGE 2
1.3 The province has not yet released the regulations indicating prescribed sharing ratios.
According to Ministry staff, the ratios have not yet been determined and may be included
in the legislation as opposed to being determined by the Minister of Finance through
regulation.
1.4 The correspondence was requesting each Municipality to write to the Premier and other
provincial officials requesting information on the sharing ratios and compensation for loss
of income.
CONCLUSION:
2.0 Treasury reported to Council in Report TR-99-97 regarding the Who Does What
Recommendations and the information that has not yet been provided to Municipalities as
a result of those recommendations. By recommendation in Report TR-99-97, Council
made clear to the Province its dissatisfaction with the lack of information provided.
2.1 As a result, it is recommended that the correspondence received from the Mayor of the
City of Gloucester be received for information. Staff will continue to monitor the status of
the Who Does What Recommendations and legislation related thereto as it is released.
2.2 The additional recommendation in opposition is recommended in order to state the
Municipality's position on the matter.
Respectfully submitted, Reviewed by,
i
an A. Marano, H.BSc.,A.M.C.T., W.H. Stockwell,
Treasurer. Chief Administrative Officer.
MAM/NT/km
Attachment A - Letter from Claudette Cain - Re: Payments-in-lieu of taxes
ATTACHMENT A
1595,cour Telesat Court COUNCIL DIRECTION D-5
P.O. Box/C.P.8333
Gloucester, Ontario K1G 3V5
(613) 748-4115
FAX: (613) 748-4354
T
Claudette Cain 01 .Zq 224 P 2 4 1997
H %T'97
MAYOR MAIRE C
V,ijjjjC,WALl1'Y Of CLMMNGIU,�)
� �
October 21, 1997 Gloucest e l
Municipality of Clarington
40 Temperance Street
Bowmanville, Ontario
LIC3A6
To The Head of Council:
Re: Payments-in-lieu of taxes
Within Bill 149 is a provision that allows the Minister of Finance to make regulations with
respect to the sharing oftayments-in-lieu of taxes. It means that, at anytime starting in 1998,
the.education tax rate portion.of residential and commercW.payme?its-in-lieu of taxes that your
municipality currently retains to finance local operations could be redirected*to the Province to
finance education.
I am writing to you today because I believe we need to make a strong statement to the
provincial government that we need to know their intentions immediately to plan for 1998 and
the future. If the result is a budget issue for municipalities we need to know how the Province
intends to solve it.
Please write to the Premier and the Ministers of Finance and Municipal Affairs and Housing
asking them for an immediate response to these two questions:
1. What are your intentions with respect to the sharing of the education portion of
- --payments-in-lieu of taxes collected by local municipalities in 1998 and future
-ears?
oif these revenues are redirected to fund education provincially, how does the
0 ernment intend to solve the municipal budget problem resulting from the loss
these locally raised revenues?
Sincerely, '
...............
Claudette Tan
The Corporation of the City of Gloucester-La ville de Gloucester