The URL can be used to link to this page

Home My WebLink AboutTR-4-84 V) CORPORATION OF THE TOWN OF J EW N[ TREASURY DEPARTMENT K. CAMPBELL, Ca,TREASURER *o TEMPERANCE STREET TsL.(*16) 623-3379 aOvvmAwv|LLE. OwTAn|O LlCoAe REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING OF FEBRUARY b, 1984. REPORT N0. : TR-4-84 - SUBJECT: STREET LIGHTING POLICY ------------------------------------------------------------ RECOMMENDATION: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: l. That this report be received; and 2. That The Policy for the Installation of Street Lighting as adopted by Council On March lO, 1980 (Schedule 8\ be rescinded, effective with the passing Of By-Law 84- (attached); and 3. That the Policy for the Installation of Street Lighting (Schedule B) be approved, effective upon the passing of By-Law 84- (attached) ; and 4. That the necessary amendments to the Street Lighting Taxation charges to bring the policy into effect be made for the 1984 taxation year /Rv-L@� �tt6C��d\ ' and ._^ ' , L* � . ~ . »& { � � V1_1 - 3(00 TR-4-84 - 2 - 5. That By-Law 84-8 being a by-law to establish a policy with respect to criteria and warrants for street lighting within the Town of Newcastle be amended as follows: "THAT Section "A"- General Policies for Street Lighting: 1. Where one or more of the following warrants is satisfied, and where the provision of street lighting is economically feasible, the Town will provide funds for the installation of such street lighting. 2. Street light installations will be funded from current revenue only, and will be constructed only if funds are available in the budget. 3. Where current funds are not available for a justifiable street light installation, such installation will be given priority for funding from the next year's budget." be deleted in their entirety and that the following clause be inserted as Section "A" Item 1: V t TR-4-84 - 3 - "Where one or more of the following warrants is satisfied, the Town may consider the provision of street lighting on the initiative of Council as provided under the Local Improvements Act." (By-Law 84-8 as amended attached) BACKGROUND AND COMMENTS: In reviewing the costs for street lighting services which have been provided by the Town in the various areas over a number of years, we find a wide variation in the amounts paid by taxpayers in each street light area. By this change in policy, it is hoped that a more equitable costing of this service within street lighting areas, will occur. There are presently nine street lighting areas in the Town, and three additional area proposed for the 1984 taxation year (Oshawa Boundary, Davis Subdivision, Windsor Valley Place Subdivision). The rural areas are serviced by Ontario Hydro and, the Bowmanville, Newcastle, and Orono areas are serviced by the Newcastle H.E.C. In 1982 the Bowmanville, Newcastle, Orono areas were amalgamated into one area to come into line with the joint H.E.C. and to provide more equitable costing of the service to all the residents in the urban areas. TR-4-84 - 4 - What is before Committee today, is an amalgamation of the existing rural street light systems to recognize the provision of a similiar service throughout those street light areas. This change would have no effect on the Orono, Newcastle and Bowmanville taxpayers or on taxpayers who do not benefit directly from street lighting in their area. Presently the costs to the taxpayers of rural street lighting services vary from a low of 1.889 mills to a high of 14.232 mills. This differential results from the operating costs of the system apportioned over the assessment available for taxation in each special area. STREET LIGHTING COSTS Based on 2800 Assessment and the 1983 Budget Costs Current Mill Rate Structure Mill Rate Tax Dollars Res. Comm. Res. Comm. 9.065 10.665 $25.38 $29.86 Orono, Newc. & Bow. 7.775 9.147 21.77 25.61 Hampton 7.800 9.176 21.84 25.69 Enniskillen 8.989 10.575 25.17 29.61 Kendal 8.130 9.565 22.76 26.78 Newtonville 1.889 2.222 5.29 6.22 Solina 2.610 3.071 7.31 8.60 Darlington Industrial 14.232 16.744 39.85 46.88 Ashton 4.834 5.687 13.54 15.92 Orono Estates Proposed Mill Rate Structure Urban Rate 9.065 10.665 $25.38 $29.86 Orono, Newc. & Bow. Rural Rate 6.939 8.163 19.43 22.86 TR-4-84 - 5 - Street lighting services in urban municipalities usually constitute a portion of the general tax rate. Because of the numbers of urban areas, hamlets and other small population centers in the municipality, which is largely rural in area, the special area rating for street lighting has persisted longer than might have been expected. Since the number of such special street lighting areas will continue to increase as new development is approved, it seems prudent to consider a policy change at this time. The Town, would also like to ease the process whereby street lighting services can be extended into already established residential and business areas, by removing the necessity of a petition from the property owners. By reducing the number of street light areas to two, from the present nine, the cost of providing this service to the urban areas and the rural areas, will be more equitable across the Town. The larger assessment base in the rural service area will allow works, which might have previously been staged over a number of years, to be addressed in one year at a more economical cost. This economy of scale has been proven in the amalgmation of the Bowmanville, Orono, Newcastle Urban Areas. The amalgamation has allowed substantial works to be undertaken in Orono in 1982 and 1983, which could not have been reasonably assessed against the taxpayers if the Orono assessment base was to have supported the full costs itself in 1982 and 1983. The Town has established the criteria and warrants for street lighting under By-Law 84-8. The proposed amendments, for By-Law 84-8 under recommendation #5 of the report, would bring T-- 3Ca� TR-4-84 _ 7 _ (2)"THE NOTICE is sufficient if it designates by a general description the work to be undertaken and the street or place whereon or wherein, and the points between which, the work is to be done, and the number of the instalments by which the special assessment is to be payable." If after the circulation, the residents petition to not have the work proceed, then Council shall not consider the same project on its own initiative for two years. All maintenance charges for the new street lighting would become part of the area rate. The assessment for new street lighting area would be added to the pool of assessment used to determine the mill rate for the entire street lighting area. There has been some question as to the appropriateness of combining the rural street light areas into one area and the necessity of holding public meetings. In reviewing this matter with the Ministry of Housing and Municipal Affairs, they state that there is no necessity for such public meetings, as this amalgamation of rates effects area tax rates only, not local improvement charges. The local improvement charges related only to the initial capital costs of the street lighting and have long since been paid. There is no prohibition in the legislation to the Town amalgamating area tax rates as it has previously done for the Orono, Newcastle and Bowmanville street light area. u -3 TR-4-84 - 6 - that by-law into line with the means of financing and installation of street lighting as proposed in this report. The establishment of a basis for evaluating requests and Council 's desire to proceed on its own initiative under the Local Improvements Act in these matters, will eliminate the need for petitions from residents. Such petition, however, would not be precluded. If the Town proceeds to expand the street lighting service to a new area under The Local Improvements Act,R.S.O. 1980 the recovery of the capital costs would be through a local improvement charge on the new street lighting area alone. These matters are explained in the following section of that act. "Chapter 250, Section 12(1 )(2) Local Improvement Act" 12. R.S.O. 1980 - (1)"WHERE the council proceeds on the initiative plan, notice of the intention of the council to undertake the work _ in Form 3 shall be given by publication of the notice and by service of it upon the owners of the lots liable to be specially assessed, and unless within one month after the first publication of the notice a majority of the owners, representing at least one-half of the value of the lots that are liable to be specially assessed, petition the council not to proceed with it, the work may be undertaken as a local improvement." TR-4-84 _ 8 _ In summary the attached by-laws and previously approved warrants will provide for standardizing charges for street lighting within areas that are currently being illuminated. Only those that directly benefit from the service will pay for street lighting, as is presently the case. This general policy change regarding street lighting services should provide for more equitable costing within the street lighting areas, which the Town is seeking, and allows for the expansion of the service into areas, where a need presently exists. Respectfully submitted, <s, Kathryn A. Campbell , C.A. ,B.Comm. , Treasurer. Attachments gf TR-4-84 - 9 - SCHEDULE "A" TOWN OF NEWCASTLE POLICY FOR THE INSTALLATION OF STREET LIGHTING 1 . The installation of new Street Lights be considered only under Local Improvement, save and except those installed in accordance with a Development Agreement or other Agreement with the Town. 2. The replacement or update of existing deficient Street Lights be in accordance with the annual approved Budgets. 3. Replacement and/or update resulting from road and street construction be in accordance with the annual approved Budget. - 4. Street Lighting required external to new development (or which becomes deficient as a result of new development) be funded by incorporating the additional cost in the calculation of Lot Levies. Resolution #W-44-80 - March 5, 1980 adopted by Council on March 10, 1980 TR-4-84 - 10 - SCHEDULE "B" TOWN OF NEWCASTLE POLICY FOR STREET LIGHTING 1 . The installation of new streetlighting systems be considered on the initiative of Council under The Local Improvement Act, save and except those systems installed in accordance with a development agreement or other agreement with the Town. 2. The annual maintenance costs of new street lighting systems be included in the appropriate Street Lighting Area charges (Urban or Rural) . The assessment base of the new street lighting area be added to the assessment pool in the appropriate Street Lighting Area (Urban or Rural ) for purposes of the mill rate calculation. 3. The installation or updating of any street lighting system be in accordance with the Street Lighting Criteria and Warrants established by By-Law 84- 4. The costs of the expansion or the updating and the annual maintenance of the existing street lighting systems be funded through the annual budget on the following basis: Bowmanville, Orono, Newcastle Urban Street Light Area: - 100% of all costs charged 100% to the benefitting landowners Newcastle Rural Street Light Area: 100% of all costs charged 100% to the benefitting landowners