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HomeMy WebLinkAboutTR-68-91 THE CORPORATION OF THE TOWN OF NEWCASTLE REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# PROVINCE Date: July 22, 1991 Res. # Report#: TR-68-91 File #: By-Law# Subject: COMMENTS ON THE REPORT TO THE MINISTER OF MUNICIPAL AFFAIRS ON THE PROVINCIAL - MUNICIPAL RELATIONSHIP Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. Report TR-68-91 be received for information. 2 . That the Minister of Municipal Affairs be advised that the Corporation of the Town of Newcastle is interested in participating in the process of developing the Provincial - Municipal Relationship with the current Provincial Government. BACKGROUND & COMMENTS 1. 0 The report of the Advisory Committee to the Minister of Municipal Affairs on the Provincial - Municipal Relationship was recently released. 1. 1 At the request of the municipal sector, in 1989, the Provincial Minister of Municipal Affairs established the Advisory Committee to review the Provincial - Municipal financial relationship. 1.2 The Committee was to investigate and report on options that would address disentanglement of the complicated relationship that currently exists and to give particular emphasis to the appropriateness of the conditional and unconditional transfer payment systems . 2 . 0 The report contains 39 recommendations, some of which have the potential to benefit the Municipal sector if implemented as suggested. For example, the initiation of a revenue sharing mechanism that would allow participation in Provincial gains, however it may also lead to an expectation that the municipality would also share in any Provincial losses . 2 . 1 The question is raised also through this report of the potential for the province to access the Realty tax base as a source of revenue. The aspect of the municipalities sharing in income tax revenue of the Province was also investigated. -/ 7 TR-68-91 Pages 2 2 .2 The report also suggests that the Province should increase the level of education funding. This is a recommendation that is generally endorsed by the municipal sector. 3.0 In addressing the disentanglement issue the report directs a re- alignment of the responsibilities of each level of government with respect to financial resources. The concept is that the sector with the ability to control and direct the program should also have the financial responsibility to fund that program. 3 . 1 This is a "pay according to say" approach to funding and resource allocation. This philosophical approach to the re-alignment of responsibilities has been verbally endorsed by the Ministry of Municipal Affairs . 4 .0 Staff feel that while there is little doubt that the relationship between the Province and the Municipalities requires reform, the Hoperoft report recommendations may not be, in all cases, the most advantageous direction from the Municipal perspective. 5.0 The Hoperoft report was prepared under the guidance of the administration of the previous Government. The current Deputy Minister of Municipal Affairs, has indicated, as has Mr. Hoperoft, that the report will be used as a guide, and a starting point for the reform to commence. 5 . 1 As an alternative to commenting on the individual recommendations and the report in it's entirety, given that it may not receive Provincial endorsement, it would seem to be more beneficial to be a part of the team that will be reviewing the relationship for the current government. It is therefore recommended that the Minister be requested to consider the Town of Newcastle for inclusion as participants in the process which will shape the future of the Municipality. 5 .2 Minimally, staff would suggest that the Province should be requested to release to all Municipalities, any draft report that is being considered for implementation in order to allow valid input and comments. While the Hoperoft report contains many worthwhile recommendations, it is difficult to respond to the report in advance of the Province's formal comments . Respectfully submitted, Recommended for presentation ittee A => M rie A. Marano H.BSc. ,A.M.C.T. Lawren E. Kotseff, Treasurer Chief inistrative Officer MAM/ges .Y J 2 '