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Home My WebLink AboutTR-104-89 r as TOWN OF NEWCASTLE REPORT File # Res. # By-Law # OEEflNG. GENERAL PURPOSE & ADMINISTRATION COMMITTEE DATE: December 4, 1989 REPORT #: TR-104-89 FILE #: SLB.JECT: YEAR END TRANSFERS TO RESERVE - 1989 YEAR END RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That report TR-104-89 be received for information; and 2. That the transaction listed in item 1.1 of the report be endorsed. BACKGROUND & COMMENTS: 1. In anticipation of the 1989 year end, these are a number of routine transfers to Reserves or Reserve Funds that are approved annually in accordance with Municipal by-laws or policies and practices. 1.1 Among the standard transfers are the following, presented for approval, some of which are in their estimated values as final amounts are not available until after year end. Transfer Required 7007-X-252 a) Transfer to Reserve for Tax Write offs 49,000 (difference between budget and actual to reserve in accordance with by-law #86-42 (copy attached) (approximate amount) 7007-X-405 b) Transfer to Working Funds Reserve to 150,000 be available for current requirements 732 TR-104-89 Page 2 in accordance with by-law #88-159 (copy attached) 7007-X-248 c) Professional fees - transfer up to Budget 29,660 limit to provide for consulting and other issues intiated in 1989 to Professional Fees Reserve (approximate amount) 7007-X-245 d) Prof. Fees re Pay Equity - transfer to 19,821 Professional Fees Reserve the unexpended value from 1989 to cover costs incurred but not billed in 1989. 7007-X-405 e) Transfer to Professional Fees Reserve to 150,000 cover possible arbitration costs re: Ontario Hydro. 7007-X-405 f) Transfer to Reserve Fund for debt 500,000 retirement to offset future annual debt repayment charges. 7007-X-405 g) Transfer to Reserve for sick credits 100,000 to help cover ever increasing liability for accumulated sick credits paid on retirement or termination. 7007-X-405 h) Transfer to Reserve fund for Industrial 100,000 and Economic Development to help offset costs associated with drawing industry to the municipality. 7710-X-299 i) Transfer to Reserve for Industrial and 25,000 Economic Development any difference between budget and actual values to cover drawdowns on projects intiated in 1989. (approximate amount) 2. The above transfers a) and b) are necessary in order to comply with established By-laws relating to tax write offs and Working Fund requirements. These reserves provide for future requirements or shortfalls in these areas. 2.1 The Reserve for Legal, Professional and Consulting Issues was established as part of the 1988 year-end transfers to Reserves and provides for many of the pertinent issues the municipality is forced to address due to the unprecedented growth in the area. The transfers in item c), d) , and i) provide for some of these issues that have been initiated in 1989 and are expected to be completed in 1990. 733 TR-102-89 Page 3 Items e) , f) , g) , and h) are not part of the 1989 budgeted transfers but are recommended by staff as part of the financial forecast associated with the Budget process. In 1989, building permit revenue was received from Ontario Hydro relating to permits required over the past few years. If this revenue had been received in the appropriate years it would have been used to offset the Annual levy over those pertinent years. In order to provide now for an even contribution towards the annual levy and avoid unacceptable wide fluctuations in the annual rates, staff deem it adviseable to make the transfers indicated above. The future annual debt charges associated with the arena and administrative centre are significant in terms of dollars as is the liability associated with sick leave payout. Also there is a very real possibility of major costs associated with arbitration on funds held by Hydro in reserve. In order to provide for all of the above plus address the desirability of providing funds for drawing industry into the municipality and have the impact presented to the ratepayers in a reasonable manner, the transfer if approved, will be made for the 1989 year end and will be drawn down to offset current tax levy by inclusion in future years, budgets which will be presented for council approval annually. Respectfully submitted, Recommended for presentation to the Committee, Ma ie A. Marano, H.BSc. , 'I awrenc�e, E/ . Kotseff, Treasurer. Chief Administrative Officer. MAM/pp -734 THE CORPORATION OF THE TOWN OF NEWCASTLE BY-LAW 88- 159 being a by-law to establish a policy respecting Working Funds Reserves WHEREAS the Council of the Corporation of the Town of Newcastle considers it desirable to re-establish the policies respecting Working Funds Reserves; AND WHEREAS Section 308 (1) of The Municipal Act, R.S.O. 1970, as amended, provides, that "every Municipality and every board, commission, body or local authority established or exercising any power or authority with respect to municipal affairs under any general or special Act in an unorganized township or unsurveyed territory may in each year provide in the estimates for the establishment or maintenance of a Reserve Fund for any purpose for which it has authority to spend funds: NOW THEREFORE BE IT ENACTED AND IT IS ENACTED AS A BY-LAW OF THE CORPORATION OF THE TOWN OF NEWCASTLE AS FOLLOWS: Policy: 1. That a policy is hereby established whereby an amount be included in the annual estimates of the Town to be transferrred to the Working Funds Reserve. 2. That the balance in the Working Funds Reserve by allowed to float within target limits of 5% to 10% of the current year's total Municipal portion of the tax billing. 3. That the Treasurer be authorized, after any given year-end, to transfer to the General Capital Reserve, any funds that are no longer required to meet the cash requirements of the previous year. By-Law read a first time this 24th day of October 1988 By-Law read a second time this 24th day of October 1988 By Law read a third and final time this 24th day of October 1988 C&vv/,0 Mayor ing- Clerk 735 The Corporation of the Town of Newcastle By-law 86-42 being a by-law to establish a Reserve for Uncollectible Taxes WHEREAS, the Council of the Corporation of the Town of Newcastle considers it desirable to establish a Reserve for Uncollectible Taxes; AND WHEREAS, Section 164(2) of the Municipal Act, R.S.O. 1980, provides that " In preparing the estimates the Council shall make due allowance -for a surplus of any previous year that will be available during the current year and shall provide for any operating deficit of any previous year, and for the cost of collection, abatement of and discount on taxes and for uncollectable taxes and may provide for taxes that it Is estimated will not be collected during the year and for such reserves as the Council considers necessary;" NOW THEREFORE, Be It Enacted and it is Enacted as a By-law of the Corporation of the Town of Newcastle as follows: 1 . That the Treasurer be authorized to establish a reserve, entitled Reserve for Uncollectible Taxes; and 2. That the Treasurer be authorized to transfer the uncollectible monies from the budget for Taxes Written Off in any given year to the Reserve for Uncollectible Taxes. By- law read a first time this 24 day of March 1986 By-law read a second time this 24 day of March 1986 By- law read a third time and finally passed this 24 day of March 1986. X/eG Mayor Clerk 'RTIFIF.D UNDER THE HAND OF THE ................................ Ci EIII(AND SEAL OF THE CURPORATION OF THE TOWN OF NEWCASTLE TO BE A TRUE COPY OF BY-LAW .....................�d.......a.S.. OF THE CORPORATION OF THE TOWN OF NEWCASTLE DATED��:� PAY 1URK OP THE CORPORATION OD I IHSr TOWN OF NEWCASTLE 7,