HomeMy WebLinkAboutFND-014-01
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CI!Jlmgton
REPORT
FINANCE DEPARTMENT
Date:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
MONDAY, DECEMBER 3, 2001 Resolution #:(;PA- fcr-lo - 0 J
File #: 11/ G.
FND-014-01
By-law #:
Meeting:
Report #:
Subject:
2002 COMMUNITY REINVESTMENT FUND (CRF) ALLOCATION
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1, THAT Report FND-014-01 be received; and
2. THAT all appropriate documentation required by the Ministry of Municipal Affairs
and Housing (MMAH) be forwarded by the January 11, 2002 deadline;,
3. THAT it is the intent of Council to use the CRF Allocations for the benefit of
taxpayers; and
4. THAT the Municipality accepts the CRF Allocations in accordance with the
Ministry's terms and conditions.
Reviewed bQ ht..JLO ~
Franklin Wu
Chief Administrative Officer
NMT/hjl
945
REPORT NO.: FND-014-01
PAGE 2
BACKGROUND
The Province is continuing their commitment to retain the current Community
Reinvestment Fund (CRF) system for the 2002 year (Attachment "A"), The Municipality
of Clarington's total CRF Funding will be $116,000, being paid in four equal payments of
$29,000.
In order for the Municipality to receive its first quarter payment, staff must comply with
the conditions of providing to the Ministry of Municipal Affairs and Housing the following,
by the specified deadline date of January 11, 2002:
1. A Council Resolution declaring the Municipality's:
(a) intent to use the CRF Allocations they will receive for the benefit of
taxpayers; and
(b) acceptance of the CRF Allocations in accordance with these terms and
conditions by January 11, 2002;
2, Their 2001 Financial Information Returns (FIRs) in accordance with the deadline
to be set by MMAH; and
3, Their 2002 tax rate by-laws by September 30, 2002.
Failure to meet the deadline could result in the CRF Allocations funds being withheld,
Attachments:
Attachment #1 - Letter from Ministry of Municipal Affairs and Housing
946
REPORT NO.: FND-014-01
PAGE 3
Interested party to be advised of Council's decision:
Ontario Ministry of Municipal Affairs and Housing
C/o Municipal Finance Branch
777 Bay Street, 13th Floor
Toronto, Ontario
M5G 2E5
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-0608
947
Attachment "A"
Ministry of Finance
Office of the
Deputy Minister
Frost Building South
7 Queen's Park Cr
Toronto ON M7 A 1 Y7
Tel (416) 325-1590
Fax (416) 325-1595
Ministry of
Municipal Affairs
and Housing
Office of the Deputy Minister
~ Ontario
777 Bay Street
Toronto, ON MOO 2E5
Tel (416) 585-7100
www.mah.gov.on.ca
November 9, 2001
Dear Treasurer/Clerk-Treasurer,
In a letter to Heads of Council from the Ministers of Finance and Municipal Affairs and
Housing, municipalities were reminded of the Province's commitment to retain the
current Community Reinvestment Fund (CRF) system with some administrative
improvements. As a follow-up, this letter will provide you with more details on your
2002 allocations including the new Transit Bonus, the 2001 year-end reconciliation,
2002 municipal reporting requirements and future Ministry of Finance initiatives. A
breakdown of the calculations involved in your 2002 CRF allocation is enclosed for your
information.
2002 CRF Allocations
The 2002 CRF amounts received by municipalities will be equal to the adiusted
amounts you received in 2001. Specifically, your 2002 CRF amounts will be equal to
your 2001 CRF amounts adjusted for approved land ambulance costs and for eligible
LSR costs in annexed areas,
Eligible municipalities will continue to receive the CRF Bonus and Supplementary
Assistance components of the CRF program.
Transit Bonus
On September 27,2001, Premier Mike Harris announced a $9 billion plan for new
transit funding over the next 10 years that will help strengthen the economy and protect
the environment. The Province will invest $3.25 billion - reducing the municipalities'
share of eligible transit fleet replacement costs from 100 per cent to one-third. The
government will also take back responsibility for funding and operating GO Transit.
To ensure that CRF-eligible municipalities fully benefit from the September 27,2001
announcement, the Province has created the new CRF Transit Bonus. This bonus,
which is in addition to the CRF Base, CRF Bonus and Supplementary Assistance, will
be used to fully offset any reduction in CRF resulting from lower municipal transit capital
and GO Transit costs.
...2
948
Treasurer/Clerk-Treasurer
Page 2
Your 2002 CRF payments, including the CRF Base, CRF Bonus, Supplementary
Assistance and Transit Bonus, will be processed by the end of the first month in each
municipal quarter. That is, by the end of January, April, July and October 2002,
2001 Year-End Reconciliation
A 2001 year-end reconciliation will be done in October 2002 with adjustments made to
reflect LSR cost changes. For those municipalities that require additional CRF to offset
their 2001 net LSR costs, the Ministry of Finance will process a separate CRF payment
in 2002 that reflects the increase in your costs. For those municipalities that
experienced a decrease in 2001 costs, your 2003 CRF quarterly payments will be
decreased to reflect your subsequent overpayment.
2002 CRF Conditions
In an effort to avoid duplication and to streamline the CRF reporting process, we have
changed the CRF reporting requirements for the 2002 CRF allocations. Responding to
the feedback we received from our stakeholders during our province-wide CRF
consultations this past summer, municipalities receiving 2002 CRF payments will be
required to submit to the Ministry of Municipal Affairs and Housing a council resolution,
2001 Financial Information Returns (FIRs) and 2002 tax rate by-laws. Specific details
on the 2002 CRF allocation conditions are attached.
Please note that in order for your first quarter 2002 payment to be processed in a timely
manner, you will be required to submit your council resolution to the Ministry of
Municipal Affairs and Housing by January 11, 2002. Those municipalities that do not
meet the conditions outlined may be subject to having all or a portion of their CRF
payments withheld.
Future Initiatives
Over the next several months, the Ministry of Finance will be hosting CRF information
sessions, which will provide details to municipal staff on the CRF program and its
administrative improvements. Details of the information seminars will follow.
If you have any questions and/or concerns regarding your 2002 CRF allocations and
your 2002 reporting requirements, please contact your local Municipal Services Office
of the Ministry of Municipal Affairs and Housing.
...3
949
Treasurer/Clerk- Treasurer
Page 3
Bob Christie
Deputy Minister of Finance
Attachment
950
W. Michael Fenn
Deputy Minister of Municipal
Affairs and Housing
Conditions of Community Reinvestment Fund Allocations
Reporting requirements have been attached to the Community Reinvestment Fund (CRF) since
2000. Whereas financial information on all municipal revenues and expenditures, including the
Community Reinvestment Fund (CRF), is already reported by municipalities to the Ministry of
Municipal Affairs and Housing (MMAH) through the Financial Information Returns (FIRs), the
CRF reporting process has been streamlined for 2002.
The Ministry of Finance hereby sets forth the conditions that apply to the receipt of Community
Reinvestment Fund allocations ("CRF Allocations") under the Local Services Realignment
(LSR) initiative.
Acceptance of a CRF Allocation constitutes agreement with the below-mentioned
statements and terms and conditions.
The CRF Allocation consists mainly of the CRF Base, as well as the CRF Bonus, Transit Bonus
and Supplementary Assistance, The CRF Base is a grant paid quarterly to eligible
municipalities, as defined by the Province in its sole discretion, to offset the costs of services
transferred to municipalities under the LSR initiative. CRF Base Allocations are determined by
a formula that calculates the difference between net LSR costs, as defined by the Province and
available residential education tax room for each municipality, as defined by the Province.
The Province may make positive or negative adjustments to CRF Base Allocations resulting
from the 2001 year-end CRF reconciliation which will impact the CRF Base Allocations for 2003
and subsequent years.
Municipal councils ultimately decide how CRF Allocations (in total) are spent and/or used for the
benefit of taxpayers. In making this decision, municipal councils will be guided by their
obligation to provide effective and efficient delivery of services to taxpayers. As with all
budgetary decisions, municipal councils recognize that they are directly accountable to
taxpayers for their use of CRF Allocations.
Municipalities are required to submit to MMAH (see address below):
(i) a council resolution declaring the municipality's:
a) intent to use the CRF Allocations they will receive for the benefit of
taxpayers; and
b) acceptance of the CRF Allocations in accordance with these terms and
conditions by January 11 , 2002;
(ii) their 2001 Financial Information Returns (FIRs) in accordance with the deadline
to be set by MMAH; and
(iii) their 2002 tax rate by-laws by September 30, 2002.
Failure to meet these deadlines may result in the withholding of CRF Allocations until these
documents have been provided to the Province.
Address:
Ontario Ministry of Municipal Affairs and Housing
c/o Municipal Finance Branch
777 Bay Street, 13th Floor
Toronto, Ontario M5G 2E5
951
MUNICIPAL SERVICES OFFICES
CENTRAL:
777 Bay Stree~ 141h Floor
Toronto ON MoG 2E5
General Inquiry: (416) 585-6226
Toll Free # 1-800-668-0230
FAX: (416) 585-6882
SOUTHWESTERN:
659 Exeter Roa!1, 2nd Floor
London ON N6t: 1 L3
General Inquiry: (519) 873-4020
Toll Free #: 1-800-265-4736
FAX: (519) 873-4018
EASTERN:
8 Estate Lane
Rockwood House
Kingston ON K7M 9A8
General Inquiry: (613) 548-4304
Toll Free #: 1-800-267-9438
FAX: (613) 548-6822
NORTHWESTERN:
435 James St. S., Suite 223
Thunder Bay ON P7E 657
General Inquiry: (807) 475-1651
Toll Free #: 1-800-465-5027
FAX: (807) 475-1196
NORTHEASTERN:
159 Cedar Street, Suite 401
Sudbury ON P3E 6A5
General Inquiry: (705) 564-0120
Toll Free #: 1-800-461-1193
FAX: (705) 564-6863
952
Local Services Realignment (LSR)
2002 Community Reinvestment Fund (CRF) Allocation
$ Thousands
Town of Clarington
Region of Durham
2002 CRF Package
1. Calculated CRF . Equivalent to Year-End 2000 I 0 I
+
2. Adjustment for 2001 Land Ambulance Costs I 0 I
=
3. Total 2002 CRF Base Allocation I ,0 I
+
4. Transit Bonus I 0 I
+
5. CRF Bonus I 0 I
+
6. Supplementary Assistance I 116 I
=
7. Total CRF Funding for 2002 I 116 I
2002 Payments
CRF Allocation of $116,000 will be paid in 4 equal installments of $29,000
Ontario Ministry of Finance
10402
953
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MUNICIPALITY OF CLARINGT
FINANCE ON
Ontario Ministry of Finance