HomeMy WebLinkAboutTR-89-81 Report to the Chairman and Members of the General Purpose and Administration
Meeting held November 9, 1981 .
Report No. TR - 89 - 81
Subject: Establi,shi;ng an Industrial Promotion Reserve Fund.
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Recommendation:
It is respectfully recommended that:
1 . This report be receiyed; and
2. The attached by-law to establish a Reserve
Fund for Industrial Promotion Reserve Fund
be approved; and
3. The net proceeds from the sale of industrial
lands and the accumulated interest presently
i'n the Town's accounts be an addition to the afore-
mentioned reserve fund; and
4. That only such funds as are necessary to
meet the advertising costs of remaining lands
be mai'ntai;ned in the reserve fund. The
remainder, after payment of the balance of
the cost for the aerial fire truck,be transferred
to the Reserve for the Municipal Acquisitions
of Real Property.
Background:
In response to the concerns of council and comments made in the. 1981
post-audit letter, we have reviewed the establishment and use of the present
Industrial Promotion Reserve Fund. In 1975 th.e Industrial Committee passed
the followi"ng resolution:
"THAT it be recommended to Council that the proceeds of
sales of Town owned industrial land be used firstly to
retire debenture funds owing and secondly to be put i;n
a special fund for Industrial promotion."
This resolution was not subsequently ratified by council and there-
fore staff had no approval to act under its direction. However, an Industrial.
Promotion Reserve Fund was established and has been maintained and used since
1975.
The reserve fund has a balance of approximately $400,000 which
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consists of proceeds from sale of industrial lands and accumulated interest
less any disbursements. Before the. end of 1981 the balance of the cost of
the aerial fire truck will be funded out of these monies,
Comments:
Although industrial promotion is a responsibility of the region,
the Town may maintain those funds, or a portion of those funds, for industrial
promotion of the remaining industril lands, The use of those funds for
general promotion of the Town is not permitted under Section 125 of the
Region of Durham Act.
Section 125 - Regi;on of Durham Act.
(1 ) The Regional Corporation may make expenditures
for the purpose of di;ffusi'ng information respect_.
Ing the adyantages of the regional municipa.li'ty
as an industrial , business, educational ,
residential or vacation centre and may make
annual grants for such purposes.
(2) Paragraph 50 of subsection 1 of section 354 and
section 395 of The Municipal Act apply "Watis
mutandis ' to the. Regional Corporation and no
area municipality shall exercise any, such.
powers save and except to respect of those lands
acquired or held by a local muni;cipali;ty on or
before the 31st day of December, 1973.
Some muni'cipa1ities within th.e. Region of Durham have undertaken
promotion programmes of various types but have no authority to do so. In
fact the section of the act referring to industrial promotion being a region
responsibi:1tty has recently been re,conft med by actions taken by the Province,
In several instances the promotion undertak.e.n by the other muni;ci;pali;ti;es
has only a quasi-municipal connection and ids not directly under the. control
or direction of council , Therefore, it does not seem appropriate to establish
a reserve fund for any purpose other than for the promotion of the remaining
industrial lands.
It i:s appropriate that the reserve fund be established by by-law
and definitely set down the use of the funds held therein, To date the
funds have been used for various acqui,siti;ons and this procedure will be
stopped by the adoption of a bylaw.
Respectfully submitted,
Kathryn A. Campbell , C.A. , B.Comm
Treasurer,
30 10 81
R81-FS-6(d)
V- 7�F�
The Corporation of the Town of Newcastle
By-Law No. 81-
beiing a by-law to establish a Reserve Fund
for Industrial Promotion.
WHEREAS th.e Council of the Corporation of the Town of Newcastle. considers
it desiarable to establish a reserve for the purpose of providing funds
for the Self-Insured Losses wi.thi'n the Town.
AND WHEREAS Section 308 (1 ) of The 'Munici'pal 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 speci;al Act in
an unorganized township or unsurveyed territory may to each year provide
in the esti;mates 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 I'S ENACTED AS A BY-LAW OF THE
CORPORATION OF THE TOWN OF NEWCASTLE AS FOLLOWS;
1 , That the Treasurer is authorized to establish
a reserve fund entitled Reserve Fund for Industrial
Promotion,
2. That the Council may by re.soluti,on passed by a
majority of members present direct the use of
the funds for specific projects relating to
sale, promotion or development of industrial
lands presently held within the Town.
3. , That Council play by By,Law direct the use of
the funds for any other purpose for which it
has the authority to spend monies.
BY-LAW READ a first and second time thi;s day of , 1981 ,
BY-LAW READ a third and final time this day of , 1981 .
G;B. Rickard
Mayor
Seal
D.W. Oakes
Town Clerk