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HomeMy WebLinkAboutFND-012-01 . ~~!![i!JglOn REPORT FINANCE DEPARTMENT Date: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MONDAY, DECEMBER 3, 2001 Resolution #: &;P(T-[;DV-'D J FND-012-01 File #: r;).:{; By-law #: itol - ,~r i Meeting: Report #: Subject: RESERVE FUND ESTABLISHMENT Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1, THAT Report FND-012-01 be received; and 2. THAT the attached By-Law be authorized, (Attachment "A"). /? ~j/, Submitted by:!tIL. Nancy . Tay r, B.BA, CA Director of Finance . d(;~~~ Reviewed by: Franklin Wu Chief Administrative Officer NMT/hjl 931 , , REPORT NO.: FND-012-01 PAGE 2 BACKGROUND AND RECOMMENDATIONS 1.0 As Council is aware, the Municipality is currently engaged in the assessment appeal process through the Assessment Review Board with Ontario Power Generation Inc. (OPG) (Roll No. 18-17010-020-09700). This property is the Darlington Nuclear Plant. 1.1 Omitted assessments have been issued by the Municipal Property Assessment Corporation (MPAC) dated October 26, 2001, covering the time period April 1, 1999 through to December 31,2001. 1,2 Since the resolution of the issues respecting the omits could result in a requirement to refund taxes collected to OPG, and in consideration of the magnitude of the amounts in dispute, the solicitor has recommended that a Reserve Fund be established and that all funds received from OPG relating to the above mentioned omitted assessments, be deposited into this Reserve Fund until such time as all issues related to the omits are finally determined, 1.3 The same recommendation will be forwarded to the Region of Durham with respect to their share of the revenue from the omitted assessments, Attachments: Attachment #A - By-Law to establish Reserve Fund 932 REPORT NO.: FND-012-01 PAGE 3 Interested party to be advised of Council's decision: Region of Durham R.J. Clapp, C.A. Treasurer and Commissioner of Finance Durham Tower 60 Bond Street West P.O. Box 618 Oshawa, Ontario L 1 H 8B6 CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-0608 93,5 Attachment "A" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW #2001- Being a By-Law to establish a Reserve Fund For Assessment Appeals WHEREAS the Council of the Corporation of the Municipality ofClarington considers it desirable to establish a Reserve Fund for Assessment Appeals. AND WHEREAS Chapter MAS, Section 163(1) of the Municipal Act R,S.O. 1990, provides that, "Every municipality as defined in the Municipal Affairs Act 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 in 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, but if the approval of the council is required by law for a capital expenditure or the issue of debentures of or on behalf of a local board, the approval of the council of a provision in the estimates of the local board for a reserve fund shall be obtained". NOW THEREFORE, Be It Enacted and It Is Enacted, as a By-Law of the Corporation of the Municipality of Clarington as follows: 1. THAT the Director of Finance be authorized to establish a reserve fund entitled "Reserve Fund - Assessment Appeals"; 2. THAT the funds received from Ontario Power Generation for omits issued October 26, 2001, by the "Iunicipal Property Assessment Corporation be deposited into this reserve and pending satisfactory resolution of issues related to the omits; and 3. THAT the Council may, by resolution passed by a majority of members present, direct the use of the funds for municipal purposes. By-Law read a first and second time this 10th day of December 2001. By-Law read a third and finally passed this 10th day of December 2001. John Mutton, Mayor Patti L. Barrie. Municipal Clerk 93-+