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HomeMy WebLinkAboutWD-19-81 TOWN OF NEWCASTLE PUBLIC WORKS DEPARTMENT Director's Report to Public Works Committee of February 17, 1981. ITEM: WD-19-81. DATE: February 5, 1981. SUBJECT: Ministry of Transportation & Communications' 1981 Subsidy Allocation. BACKGROUND: The attached correspondence from the Ministry of Transportation & Communications' in regard to the 1981 Allocation of Funds by way of Provincial Subsidy, has been referred for a report to this Committee. _ REPORT: The Annual Subsidy Allocation for the current year is detailed as follows: $495,000 for Construction Projects. $860,000 for Maintenance purposes. $ 1,355,000 Total. In comparison with the 1980 Subsidy Allocation of $1,343,500, the figure of $1,355,000 represents the minimal increase of 0.856% ($11,500) . Projects presented for consideration in this year's Budget amount to some $1,840,125, as opposed to the total of $1,432,560 for 1980 and, thus, the normal subsidy allocation does not truly reflect the Town's increase in requirements, RECOMMNDATION: THAT the correspondence from the Ministry of Transportations & Communications' authorizing the subsidy allocation for 1981 in the total amount of $1,355,000 (One Million Three Hundred and Fifty-Five Thousand Dollars) be received for information. jd UIT L.L.T. Ontario Ministry of District No. 6, Transportation and 5000 Yonge street, Communications Willowdale, Ontario. M2N 6E9 Telephone: 224-7456 81 01 09 Mr. J.M. McIlroy, Clerk, Town of Newcastle, 40 Temperance St., gi Bowmanville, Ontario. 1 Pte' 10 Dear Sir: Re: 1981 Subsidy Allocation Pursuant to the Public Transportation and Highway Improvement Act, R.S.O. 1970, as amended, the Honourable James Snow, Minister of Transportation and Communications, has authorized a subsidy allocation for 1981 in the amounts of: $ 495,000 for Construction $ 860,000 for Maintenance $ 1,355,000 TOTAL The above figures are the 1981 construction and maintenance allocations for your Municipality in subsidy dollars. A Program Form, OB-MR-28 (Rev. Dec. 1974) is attached and is to be completed showing how such allocation is to be spent. One copy of this form shall be sent to the undersigned not later than March 31st, 1981 . The 1981 construction allocation again is based on the findings of the needs studies. Where the results have shown that an increase in allocation is warranted over the initial allocation in 1980, the increase has been allowed up to a 20% maximum, We wish to emphasize that Council should determine the total construction funds to be spent on the municipal roads system in 1981 and that they may wish to establish a program for less than the allocation indicated. If the program decided on by Council PLEASE TAKE PARTICULAR NOTE OF THE SECOND LAST PARAGRAPH ON / PAGE 2 RESPECTING THE ENVIRONMENTAL ASSESSMENT ACT. L.L.T. -2- / requires more funds than those allocated, it is Council's privilege to submit a Supplementary Request to the District Office, but the substantiation of the extra funds should be based on the findings of the needs studies. Where the results have shown that a decrease of more than 20% from the initial allocation in 1980 is warranted, the 1981 construction allocation shows a 5% reduction from the 1980 initial level. The maintenance allocation shown above has been made on the basis of an appropriate requirement for the entire year and no further allocation specifically for maintenance will be provided. The transfer of subsidy funds between construction and maintenance will be allowed without Ministry approval and subsidy funds will be controlled only on the basis of the Total allocation. This provides municipalities with more flexibility in handling their road programs and results in realistic reporting of expenditures. This type of control has worked well and your cooperation in continuing to report expenditures on a realistic basis will be appreciated. Where major construction expenditures, including equipment purchases in the case of a rural municipality, have been proposed and will require a subsidy amount in excess of the above allocation for construction, the excess amounts will not be subsidized unless covered by a request, approved by the Minister, for a supplementary allocation of subsidy monies. Supplementary requests, where applicable, should reach this office not later than March 31st 1981 . However, no guarantee of approval of any supp ementary allocation can be given at this time and if subsidy is expected on any proposed work covered by such application it should not be commenced unless approval has been received from the Ministry. This allocation is given with the understanding that expenditures made thereunder will be in accordance with present Ministry policy. By Order-in-Council dated June 41 1980, the exemption of municipalities from the Environmental Assessment Act, 1975, was removed. Section 6(1 ) of that Act requires that subsidy must be withheld from municipal projects unless the municipality complies with its requirements. The approval of the Ontario Municipal Board shall be obtained before any expenditure is authorized or work commenced which will be financed by' the issue of debentures or monies raised in years subsequent to the term of the present Council. Yours very truly, s` I{ Engineer. c.c. H. Orlando J. Dunham J. Moffat R.T. Huggins File