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HomeMy WebLinkAboutWD-14-93 THE CORPORATION OF THE TOWN OF NEWCASTLE REPORT _�a - ��, 1 Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# T� Date: APRIL 5, 1993 Res. # Report#:__WD_-1A_-_93_ File#: -AS-AD-111 By-Law# Subject: DISENTANGLEMENT Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report WD-14-93 be received for information. REPORT 1.0 ATTACHMENTS No. 1: Correspondence dated January 22, 1993, from the Ministry of Municipal Affairs. No. 2 : Summary Notes Report No. 93-J-7, dated March, 1993, and Revised Report No. 93-J-7, dated March 31, 1993. 2.0 BACKGROUND 2 . 1 The correspondence dated January 22, 1993, gives a good background and overview of the status of proposed disentanglement. Subsequent to the letter from the Ministry of Municipal Affairs, the Association of Municipalities of Ontario has circulated a document entitled, "Disentanglement One: Consultation Paper on the Draft Provincial-Municipal Agreement" . REPORT NO. : WD-14-93 PAGE 2 Also, from February 19 to March 12, the Association of Municipalities of Ontario has been holding consultation sessions with municipalities across the Province. On March 8, the Director of Public Works attended a session at the Municipality of Metropolitan Toronto, Metro Hall. This session was also attended by the Chief Administrative Officer of the Region, the Commissioner of Finance and representatives from the Works Department. 3 .0 REVIEW AND COMMENT 3 . 1 Most of the impact of disentanglement is at the Regional level. Attachment No. 2 provides the Region's position on disentanglement as it relates to Regional matters . The only direct impact of disentanglement on the Town of Newcastle appears to be related to the Connecting Link Agreements which the Town has with the Ministry of Transportation for King Street in Bowmanville and Highway 2 in the Village of Newcastle. These agreements will be cancelled as noted on page 23 of the Disentanglement Phase One document: "As a result of the transfer of these provincial highways, the connecting link designations which relate to these highways are no longer appropriate. It is the intention of MTO to work with the affected municipalities to identify the impacts associated with the change to connecting link agreements . No municipality will be i financially disadvantaged as a result of these changes . " 3 .2 Although the Ministry of Transportation has not yet decided on the details for the cancellation of the connecting link agreements, one suggestion is that the Ministry would raise � U' { l REPORT NO. : WD-14-93 PAGE 3 its level of funding for roads to the municipalities to make up for the difference in subsidy level on the connecting links from 90% to 50% . 3. 3 The development of the issue of disentanglement will be monitored and a report will be submitted to Council when circumstances warrant a position to be undertaken by the Town. Respectfully submitted, Recommended for presentation to the Committee, /r ,Walter A. Evans, P.Eng. , Lawrence E. Ko�seff, Director of Public Works Chief Administrative Officer WAE*ph March 30, 1993 Attachment I I i i i I � U Attention: PATTIE BARRIE, CLERK TOWN OF NEWCASTLE s Ministry of Minist6re des Municipal Affairos 0 Affairs municipales A, Ontario M =ad"of Cwtvio January 22, 1993 The Head of Council: As you are aware, AMO and the Provincial Government have been working hard over the past year on what is known as disentanglement. Our efforts are aimed at reforming the provincial-local relationship to improve acwantability in service management, funding and delivery at the municipal and provincial levels. We're pleased to report that late last night we reached an agreement on phase one of disentanglement. The details of that draft agreement are set out in the attached press mlease and accompanying explanatory notes. `before the HMO's board of directors signs the final agreement for implementation on January 1, 1994, AMO will send copies of the draft agreement to all municipalities, and we'll be seeking your support at a series of regional consultation sessions. Should you have any questions about the attached material, please call the association's office at (416) 929-7573. Sincerely, f John Harrison Dave CookT Councillor, Township Minister of Municipal of Delhi Affairs Co-Chairs, Disentanglem1 ent Steering Committee 1 U 14 ATTACHMENT N0. 1 WD-14-93 MINISTRY OF MUNICIPAL AFFAIRS===JANUARY 22, 1993===PAGE 2 News release Ontario Release: January 22, 1993 Drnfprovincial-municipal a ment means Province to pay 100%p of welfare allowyances TORONTO -- The provincial government will pay 100 per cent of.the cost of General Welfare Assistance allowances beginning in Ianuary, 1994 under a draft agreement reached late, last night by provincial and municipal politicians. - In return, municipalities will assume certain other responsibilities now funded by the province but more properly under municipal jurisdiction. At a joint news conference this morning, Municipal Affairs Minister Dave Cooke and john Ha::rison, former president of the Association of Municipalities of Ontario (AM:O), said that the draft agreement is a sign of good will and partnership between the two levels of government. The agreement centres around a provincial-municipal initiative known as Disentanglement. Mr. Harrison and Mr. Cooke, who co-chaired the Disentaxgb,-ment Stem'ing Committee, outlined the draft agreement which sets out a trade of responsibilities between the two levels of government all aimed at achieving more aceountabl.e, efficient and effective government. The overlap, duplication and confusion that results from the province and municipalities cost- shatxng more than 100 services and programs is no longer acceptable, the co-chairs said. Disentangling these responsibilities will help people understand-who provides what services and who can be held accountable for them. Disentanglement also addresses the questions of which level of government should set policies for a particular program or service, which is best suited to deliver it and which should fund it and how. "This is a very important agreement for municipalities," Mr. Harrison said. "It means we will be able to budget for local priorities without having to worry about massive welfare expenditures over which we have no control." "For many years, virtually everyone with an interest in social assistance programs has agreed that the province should pay 100 per cent of the cost of General Welfare Assistance allov'Iances. Now we're doing it," Mx. Cooke said. "I am very pleased at what municipalities and the provincial government have been able to accomplish in less than a year. It is a tremendous and historic achievement." Mun;:cipalities now pay about 20 per cent of the cost of General Welfare Assistance allowances, which is estimated to be at least $350 million in 1992, although the actual year- I V J (PAGE 2 OF 9) MINISTRY OF MUNICIPAL AFFAIRS===JANUARY 22, 1993===PAGE 3 end figure is not yet known. While the funding arrangements \kill 'change, people who receive welfare will continue to receive the same level of service, from the same people, in the same way they do now. To help offset this increased provincial expenditure, municipalities will assume funding responsibilities for property assessment services and certain provincial highways. Municipalities would pay for property assessment services the province currently funds. The government will establish a Schedule N agency that will deliver property assessment services. Under a Schedule IV agency, employees remain civil servants, and the terms and ;auditions of their employment continue to be determined by the collective agreement with ..he Ontario Public Service Employees Union and/or Ontario Public Service guidelines and directives. The government plans to invite OPSEU and affected employees to consult the province as the legislation setting up the agency is developed. Counties and regions will become responsible for the upkeep of some 2,200 kilometres of provincial highways that are more appropriately under municipal jurisdiction because they (wry predominantly local traffic. 7:'his agreement also includes measures that will lead to an improved budgeting process for municipal policing services which gives municipal councils more flexibility irk dealing with police budgets while ensuring adequate and effective policing services. At the same time, the provincial government would retain the right to set province-wide policing Zmdards and ensure those standards are maintained. unconditional grants to municipalities would also be adjusted to help compensate for the increased provincial expenditure on welfare. This would 'erisure that the trade-off of funding responsibilities is equal for municipalities and the province at the time of the agreement. Neither the province nor any individual municipality will have to raise taxes as a result of the Disentanglement agreement. The Ontario government and AMO have been working together on the first phase of Disentanglement since early 1992. The 12-member provincial-municipal steering committee agreed early in the discussions that the province should provide' 100 per cent funding of General Welfare Assistance allowances. Both levels of government believe that property taxes, which are regressive, should not fund an income redistribution program such as general welfare allowances. To offset this increased provincial expenditure, the steering committee identified a number of areas in which municipalities could assume more program and funding responsibilities. - The Steering Committee set up expert panels to study general welfare assistance, roads, Wrnsit, property assessment and police services budgets. The panels, which hal i b" (PAGE 30F9) i MINISTRY OF MUNICIPAL AFFAIRS===JANUARY 22, 1993===PAGE 4 representatives from unions and community and client groups as well as provincial and municipal officials, developed options and consulted widely among groups with an interest in •these areas before malting recommendations to the storing committee. The draft agreement :reached last night is the result of that work. Before the Association's board of directors signs the final agreement for implementation on Xanuary 1, 1994, the Association will• send copies of the draft agreement to all municipalities, and seek their support through a series of regional consultation sessions. ;."he co-chairs described the Disentanglement exercise as productive and indicative of what can be done on behalf of the public if.governments work together, Mr. Cooke and Mr. Harrison said they have developed a better understanding of each governmem-'s perspectives during the past year, adding that this greater understanding will lead to a more harmonious and productive relationship in the future. They said the success of this phase augurs well for future phases of Disentanglement. Phase Two is expected to begin after the final agreement on Phase One is concluded. For more information, please contact: Michael Jordan or Debbie Oakley, Provincial-Local, Relations Secretariat, (41-5) 585-7320 Bab Foulds, Chief Administrative Officer, County of Kent, (519) 351-1010 Doug Raven, Association of Municipalities of Ontario, (416) 929-7573 Sine MacKinnon, Office of the Minister of Municipal Affairs (416) 585-7000 I _ (PAGE 4 OF 9) MINISTRY OF MUNICIPAL AFFAIRS===JANUARY 22, 1993===PAGE 5 ELEMENTS OF THE AGREEMENT General Welfare Allowances The provincial government will pay 100 per cent of the general wj:lfare allowances paid to people on social assistance. Cities, counties and regional governments now pay about 20 per cent, estimated to be at least $:350 million in 1992 (the actual year-end figure is not yet known.) The agreement will change neither the way welfare services are delivered, nor the people who deliver them. People who receive welfare will continue to receive the same assistance, from the same people, in the same way they do now. As part of the agreement, municipalities that deliver welfare will sign interim service agreements intended to protect current levels of service (sps vial assistance, supplementary aid, etc.). Administrative costs will continue to be cost-shared by the province and municipalities. These agreements would remain in effect until the provincial government proclaims legislation for broader social assistance reform. The province will consult municipalities on social assistance delivery options before introducing new social assistance legislation. Roads About 2,200 kilometres of what are now classified as provincial highways will become the responsibility of the counties and regions through which they run, For the most part, these are highways which, because of the opening of new multi-lane freeways, are now being used mainly as local roads. For example, much of Highway 2 in eastern Ontario is used only for local travel, while through traffic is carried by highway 401. Provincial savings as a result of this transfer of responsibility are estimated at about $40 million a year. 'The province has agreed to continue subsidizing municipal roads and municipal roads administration costs in 1993/94 at current levels. Prop&rty Assessment Sery* es Municipalities will pay for property assessment services currently funded by the Ontario Ministry of Revenue. At the same time, municipalities will take control of the delivery of the services. That's in keeping with the disentangL;ment principle that decision-making for service delivery Should be the responsibility of the level of government that fully finances the service. .nnnr c nr n MINISTRY OF MUNICIPAL AFFAIRS===JANUARY 22, 1993===PAGE 6 The government will establish a Schedule IV agency that will deliver property assessment services. under a Schedule IV agency, employees remain civil servants, and the terms and Conditions of their employment continue to be determined by the collective agreement with the Ontario Public Service. Employees Union and/or Ontario Public Service guidelines and directives. The government plans to invite OPSEII and affected employees to cor.:sult the province as the legislation setting up the agency is developed. The municipal sector would hold a majority of seats on the agency's board of directors. The province will continue to set oven'-all policy on property assessment. Provincial savings as a result of this change are estimated at about $135 million. Unconditional Grants to 113uni,cipalities The annual unconditional provincial grants to municipalities would. be reduced by $165 million, effective Jan. 1/94. The grants will be adjusted municipality by municipality to ensure that no municipality will have to raise its taxes because of disentanglement. NON-MONETARY ELEMENTS Police Servi ss Budgets The Police Services Act will be amended to formalize the responsibilities of Police Services Boards with respect to municipal budgeting. A voluntary local mediation process will be established for budget items on which the board and the municipal council cannot agree, but council will make the final decision on the budget. A police services board will contihue'to have the right to ask for a hearing before the Ontario Civilian Commission on Policing Servioes if it feels it cannot provide adequate police services as a result of a council decision. The Commission will continue to have the right to make binding orders and to set a deadline for implementation. Municipal councils will have the flexilaility to determine the timetable for phasing in the order. However, the commission can not'require a municipality to adjust its budget mid-year unless public safety is at risk. nin As part of the agreement, the province and municipalities have agro+ d to hold an annual joint planning meeting of key Cabinet members and AMC, representatives to discuss matters of interest to municipal government. For discussion at that meeting, the Ministry of Municipal Affairs will undertake an analysis of the cumulative impact on municipalities of provincial policy and program changes made in the previous year. (PAGE 6 OF 9) i MINISTRY OF MUNICIPAL AFFAIRS===JANUARY 22, 1993===PAGE 7 DISENTANGLEMENT FACT SHEET • 'What is disentanglement? Disentanglement is the process of changing and clarifying provincial and municipal roles and responsibilities in providing services to the public. • Why do we need disentanglement? The proving and municipalities share responsibility for more than 1()0 services, leading to overlap, duplication and confusion. Disentangling these responsibilities will help people understand who provides what service and who can be held accountable. Disentanglement also addresses the questions of which level of government should set policies for a particular program or service, which is best suited to deliver it and which should fund it and how. ' How do we go about "disentangling?" The current maze of cost-sharing programs has developed over decades. Any changes to the existing system will have to unfold within a series of phases. Rase one involves the review and analysis of general welfiaTe assistance allowaTioes, roads and transit, property assessment services and municipal police services budgets, Who is leading this reform? Disentanglement is being guided by a 12-member Steering Committee composed of six Ontario cabinet ministers and six municipal representatives appointed by AMO: Municipal Affairs Minister Dave Cooke, Community and Social Services Minister Marion Boyd, Environment Minister Ruth Grier, Treasurer Floyd Laughren, Education Minister Tony Silipo; Transportation Minister Gilles Voullot; and Correctional Services Minister David Christopherson, former Parliamentary Assistant to the Treasurer; former AMO president John Harrison, MYtro Toronto Councillor Scott Cavalier, AMO Immediate Past President Helen Cooper, AMO First 'Vice President Mabel Dougherty, AMO President Joe Mayrinac, and Waterloo Regional Chairman Ken Selling. Dave Cooke and John Harrison co-chair the committee. A Coordinating Committee advises the steering committee on all asp cts of the reform. It helps set strategic direction, helps establish the mandate and composition of the expert panels and helps to define strategies for negotiations, consultation and communication. The Coordinating Committee is composed of senior officials from provincial ministries and municipalities. �i (PAGE 7 OF 9) i MINISTRY OF MUNICIPAL AFFAIRS===JANUARY 22, 1993===PAGE 8 Since disentangling provincial and municipal shared services may affect the way in which some employees do their jobs, a Workforce Tmpact Committee was established to carefully consider any effects disentanglement might have on employees. This committee, chaired by Ontario Federation of Labour representative Don Collins, identified and analyzed how employees might be affecte3 by change. Five expert panels were established to carefully study the areas under review: municipal roads, municipal transit, property assessment services, general welfare assistance and municipal police services budgets. Representatives from both the municipal sector and the province, as well as experts in'each area, were brought together to review options for change. Options ranged from leaving the current system in place, to full provincial or municipal funding to slight modi:ications of the existing relationship, • What were the working principles:': To help the provincial and municipal partners negotiate an agreement, the Disentanglement Steering Committee developed a set of woriang principles. The principles formed the basis for discussions and were an important step in helping the partners meet their objectives, while maintaining standards in service aid delivery. The working principles are summarized below: Responsibility and authority should be determined by each government's interest; the proportion of funding should be related to each government's level of authority and responsibility; the partners should not experience a greater share of financial responsibility; services aimed at redistributing incbrrie should not be financed from current municipal revenue sources; decision-making for service delive:,-y should be the responsibility of the level of government that finances the service; and ongoing consultation and communication with employees and communities affected by this reform should be encouraged. What was the "Fiscal framework?": The question of the financial impact of disentanglement on both the province and individual municipalities had to be addressed early in negotiations, Thy, partners agreed there would be no big financial losers or winners as a result of disentanglement. They agreed, therefore, that if the province were to fully fund general welfare allowances,-municipalities would have to assume offsetting responsibilities for funding in other areas. (PAGE 8 OF 9) i I I 3 Z .:THEAGREEMENT'S FINANCIAL PICTURE NEW ROLES AND VALUE RESPONSIBILITIES ' . rn - 3 � C Z Costs being transferred from municipalities to the Province: Municipalities' 20%Q funding of General Welfare Allowances, valued at $340 $344 M mlllion n n n Costs being transferred from the Province to municipalities: C Property assessment services $135 M Responsibility for certain highways actually serving primarily local traffic $ 40 M N W Reduction in provincial uncgnditional grants to municipalities $165 M rn ca Net shift in funding responsibilities $ 0 a rn 0 rn ca HAND OUT SUMMARY NOTES REPORT #93-J-7 DURHAM REGION'S POSITION ON T'HE PROPOSED PHASE ONE OF THE DISENTANGLEMENT INITIATIVE MARCH 24, 1993 TRI-COMMITTEE MEETING: HEALTH AND SOCIAL SERVICES, WORKS AND FINANCE AND ADMINISTRATION ATTACHMENT N0. 2 v WD-14-93 'j I PHASE ONE OF DISENTANGLEMENT INITIATIVE DISENTANGLEMENT Province assumes 100% of PROPOSAL GWA costs and in return the Region assumes costs of certain highways (to be transferred) as well as its share of Property Assessment • Amount of Unconditional Grants to be adjusted to ensure that municipality remains fiscally neutral. WHY DISENTANGLE? to clarify roles and responsibilities of various levels of government • to give municipalities greater control over their budgets • to remove the GWA Allowance from municipal obligations i MARCH, 1993 PAGE #1 4 TABLE 1.0 TBE FINANCIAL PICl'URE - NEW ROLES VALUE AND RESPONSIBILITIES Costs being transferred from affected municipalities to the Province: Municipalities 201010 funding of GWA at a negotiated value $340 M Costs being transferred from the Province to all municipalities: A) Property assessment service: $135 M B) Responsibility for specific highways actually serving primarily local traffic: $ 40 M C) Reduction in provincial unconditional grants to all municipalities: $165 M Net shifts in funding responsibilities at the time of the agreement: $ 0M 993 PAGE z MARCH 1 i PHASE ONE OF DISENTANGLEMENT INITIATIVE ESTIMATED COSTS OF DISENTANGLEMENT TO DURHAM REGION ($ MILLIONS) 1994 1995 PROJECTION PROJECTION Reduction in GWA Allowances (14.0) (14.0) Cost of Highway Transfer 3.2 0.9 Cost of Property Assessment Function 4.7 4.7 Reduction in Unconditional Grants from the Ontario Government 7.6 7.6 Net Effect - Surplus (Deficiency) 1.5 0.8 MARCH, 1993 PAGE #3 i :f llllll i TRANSFER OF PROVINCIAL HIGHWAYS * TOTAL 2,344 2 - LANE KILOMETRES * SAVINGS TO PROVINCE $40 MILLION ANNUALLY $16 M $10 M $14 M CONSTRUCTION MAINTENANCE RATIONALIZATION * DURHAM H WY 2 66.9 HWY 7 20 H WY 12 6.6 93.5 KM * 93.5 = 4% _ $ 1.6 MILLION 2,344 ADJUSTMENT $ 0.2 MILLION TRANSFER ALLOCATION $ 1.8 MILLION ANNUAL i r) ESTIMATED ANNUAL OPERATING COSTS 1. ASSUMPTIONS i) estimates for maintenance and traffic operations "hard costs" are based on pro-rata averages for + 100 additional 2-lane kilometres ii) maintenance costs have allowance for 15 new employees iii) traffic operations costs have allowance for 2 new field staff and one new office staff iv) allowance for 2 new engineering staff is necessary to cope with additional workload in engineering division (assume 2 junior engineers) 2 . ANNUAL COSTS Maintenance $ 941,500 Traffic Operations 432,620 Additional Eng. Staff 140,000 Total $1,5141120 3. START-UP COSTS Maintenance $1,971,200 Traffic Ops 351,000 Total $2,322,200 i CALCULATED REGIONAL SHARE OF $40M 1. Based on MTO allocation 93 .5 km/2,344 = 4% or $1,600,000 2 . Based on measured mileage 108.6 km/2,344 = 4.6% or $1,853,240 3 . Based on MTO appraisal sheets 117.7 km/2,344 = 5% or $2,009,000 VALUE OF IIIGIIWAY IIIANSFEII UNDER PIIASE 1 Of UISENIANGLLMLN1 WIT11 NO CHANGE IN MTO ALLOCATION TO UPPER TIER MUNICIPALITIES Length of Proportion Gross 1992 Adjusted 1992 Increase or Net - highway transfer of Value of MTO MTO alloc. (Decrease)In Value of - (2 lane eq.) Transfer Transfer Allocation Incl.transfer MTO allocation Transfer COUNTY/REGION km % $ $ $ $ $ ` A) 18)=(A)12330 [C)=(B) " 40M (0) (E) (F)=(E)-(D) (G)=(C)-(F) REGIONS; DURHAM 93.5 4.01% $1.605,288 $8,476,000 $8.243.699 ($232.301) $1,837,589 � HALDIMAND-NORFOLK 34.3 1.47% 588,892 6,722,800 6,860.513 (62,287) 651,179 HALTON 38.0 1.63% 652,417 4,220,800 4,245,450 24.650 627,766 HAMILTON-WENTWORT 69.8 3.00% 1,198,386 9,972,400 10,071,284 98,884 1,099,502 METRO TORONTO 66.4 2.85% 1,140,012 38,179,800 36,179,800 0 1,140,012 MUSKOKA 0.0 0.00% 0 7,859,400 6,705,950 (1,153,450) 1,153,450 - NIAGARA 74.1 3.18% 1,272,212 8,970,500 8.629,112 (341,388) 1,613,600 OTTAWA-CARLETON 55.0 2.36% 944,287 25,107,200 22,942.144 (2,165,056) 3,109,343 OXFORD 27.9 1.20% 479,011 2,917,100 3,011,047 93,947 365,064 PEEL 34.7 1.49% 595,759 5,689,300 5,871,171 181,871 413,688 SUDBURY 0.0 0.00% 0 7,778,100 7,240,884 (537,216) 537,216 WATERLOO 0.0 0.00% 0 8,028,400 7,740,390 (268,010) 288,010 YORK 162.4 6.97% 2,788,222 11,181,500 12,146,871 965,371 1,822,851 COUNTIES 1 BRANT 72.4 3.11% 1,243,025 1,640,200 2,052,868 412,668 830.357 _^ BRUCE 0.0 0.00% 0 3,572,800 3,181,585 (391,215) 391,215 DUFFERIN 27.8 1.19% 477.294 1,145,600 1,355,301 209,701 267,593 ELGIN 71.0 3.05% 1,218,989 6,268,800 5,725,152 (543,648) 1,762,636 ESSEX 30.5 1.31% 523,650 3,584,900 3,732,033 147,133 376.517 Cy FRONTENAC 176.6 7.58% 3,032,020 2,214,100 3,818,703 1,604,603 1,427,417 GREY 0.0 0.00% 1 0 5,659,200 5,019,479 (639,721) 639,721 HALIBURTON 44.1 1.89% 757.147 2,998,000 2,911.966 (86,034) 843,180 HASTINGS 116.8 5.01% 2,005,322 4,497,500 4,661,668 164,188 1,841,134 HURON 72.7 3.12% 1,248,176 4,800.100 4.738,351 (61,749) 1,309,925 KENT 32.6 1.40% 559,705 3,829,500 3,800,789 (28,711) 588,416 LAMBTON 97.3 4.18% 1,670,530 2,871,100 3,212,611 341,511 1,329,019 LANARK 53.9 2.31% 925,401 3,478,500 3,576,907 98,407 826,995 LEEDS AND GRENVILLE 101.8 4.37% 1,747,790 4,765,000 4,970,139 205.139 1,542,651 LENNOX AND ADDINGTC 43.0 1.85% 738,261 2,753.100 2,960,005 206,905 531,355 MIDDLESEX 69.8 3.00% 1,198,386 4,923,600 5,462,739 539,139 659,247 NORTHUMBERLAND 66.7 2.86% 1,145,163 2,137,300 2,415,863 278,563 866,599 PERTH , 4.7 0.20% 80,694 2,647,600 2,203,391 (444,209) 524,903 PETERBOROUGH 124.0 5.32% • 2,128,938 3,371,100 4,143,567 772,467 1,356,471 PRESCOTT/RUSSELL 0.0 0.00% 0 3,844,700 3,592,920 (251,780) 251,780 PRINCE EDWARD 0.0 0.00% 0 2,551.400 2,340,702 (210,698) 210,698 RENFREW 206.8 8.88% 3,550,519 3,399,800. 4,162,162 762,382 2,788,137 SIMCOE 53.2 2.28% 913,383 4,116,600 4,168,387 51,787 661,596 STORMONT D d G 72.1 3.09% 1,237,874 6,026,700 6,081,042 54,342 1,183.533 VICTORIA 115.8 4.97% 1,988,153 3,665,900 4,434,504 768.604 1,219,550 WELLINGTON 20.1 0.86% 345,094 4,986.500 4,441.710 (544,790) 889,884 TOTAL 2,329.8 100.00% $40,000,000 $238.852,900 $238,852,900 (SO) $40,000,000 March 31, 1993 TO: Regional Council FROM: The Tri-Committees: Health and Social Services, Works and Finance and Administration RE: REPORT #93-J-7 AS REVISED BY THE TRI-COMMITTEES (HEALTH AND SOCIAL SERVICES, WORKS AND FINANCE & ADMINISTRATION) ON MARCH 24, 1993 DURHAM REGION'S POSITION ON THE PROPOSED PHASE ONE OF THE DISENTANGLEMENT INITIATIVE 1.0 RECOMMENDATIONS: That the Finance and Administration, Health and Social Services and Works Committees recommend to Council that: • This Report be submitted to the Association of Municipalities of Ontario (AMO) as the Region of Durham's Position on the proposed Phase One of the Disentanglement initiative; • Regional staff continue to review and re-assess this Position, as further information is made available from the Province and AMO; and, • Regional staff report to the Finance & Administration, Works and Health & Social Services Committees and to Council, on the effects on the Region of any new information that is made available by the Province or AMO relating to the Disentanglement initiative. 2.0 SUMMARY OF DURHAM REGION'S POSITION: 2.1 Overall • Durham Region generally supports ?' Y pports the principle of ?' clarifying the roles and responsibilities of the 1' provincial and municipal governments, so that the public will better understand who provides which service, the appropriate level of government to provide the service and which level of government can be held accountable. i t I I 2 . 2.0 SUMMARY OF DURHAM REGION'S POSITION, cont'd 2.2 GWA Benefit Costs • The Region of Durham supports the transfer of GWA Benefit costs to the Province. • The Region is opposed to any transfer of the service delivery function away from the municipalities, primarily because of the unique capabilities of the municipalities to meet their communities ' needs while maintaining costs . The Province is presently reviewing the entire area of social assistance, including various options for the delivery of these services . The Region understands that some of the options under review, for delivery, include the use of a special purpose body, and use of the local offices of the Ministry of Community and Social Services. The Province should fully disclose the direction and substance of any restructuring of "human service delivery" that it is considering. 2.3 Transferred Highways • The transfer of the specified provincial highways is also a desirable component of the Phase One agreement and that it meets many of the Disentanglement working principles. Although there are discrepancies between the Regional and Provincial financial data and estimates, these issues are currently being addressed and should be resolved prior to any formal agreement. • The Region has estimated that the costs of maintaining the transferred highways, along with the costs of correcting existing deficiencies, are well in excess of similar estimates prepared by the Province. Further, the Region requests reimbursement for any transitional costs that may be incurred as part of this transfer (eg. signage) . The Province should formally address these additional cost requirements to ensure that the objective of fiscal neutrality is achieved. 2.4 Property Assessment Function • The Region is opposed to the transfer of the Property Assessment Services to the municipalities. The current proposal as outlined in the Phase One Agreement violates several Disentanglement principles . The proposed transfer of the Property Assessment function to a Provincial Schedule IV agency will further entangle the two levels of governments, and the proposed cost allocation methods subsidizes certain municipalities to the detriment of the others . • The amount of the Reduction in Unconditional Grants be increased by an amount equivalent to the costs to the Region of the Property Assessment function. 3 . 2.0 SUMMARY OF DURHAM REGION'S POSITION, cont'd 2.5 Reduction in Amount of Unconditional Grants • The Region agrees with the reduction in amount of the Unconditional Grants, as the "balancing factor" in the overall Disentanglement initiative, provided, as explained further in the Report, that the principle of fiscal neutrality is maintained. 2.6 General • It is the understanding of Durham Region that fiscal neutrality will be maintained throughout the Disentanglement process . That is, neither the individual municipalities nor the Province will incur additional costs arising from the assumption of any new roles or responsibilities . • There are several concerns with the proposed transfer of roles to the Region of Durham for which clarification is required from the Province and AMO. The Region of Durham will be unable to make a full assessment of the effects of the Disentanglement initiative until this information is made available. • The Province needs to provide assurance to the Region that any cost savings, related to the transfer of GWA allowances, which may occur in the future will be. shared with the Region. In addition, any unforseen events in the future, related to the transferred highways or Property Assessment function, which may require additional funding by the municipalities should also be shared with the Province. i I I I 4 . 3.0 BACKGROUND: 3. 1 Definition: Reform of the Provincial-Municipal relationship is a priority for both the Ontario government and the Association of Municipalities of Ontario (AMO) , representing most of the municipal governments across Ontario. This reform initiative is referred to as Disentanglement. The stated objective of disentanglement is to realign Provincial and Municipal roles and responsibilities in the management, delivery and funding of local services to improve accountability, control and efficiency in service provision. Through this process, certain roles of each level of government have been redefined, giving clearer responsibility and accountability for specific functions and ensuring sufficient resources to perform these roles . The process has included participation, consultation and communication with employees, their bargaining agents, key stakeholders and communities affected by this reform. 3.2 The Need for Disentanglement: The Province and municipalities share responsibility for more than 100 services provided to the public. Presently, there is overlap, duplication and general confusion of responsibility concerning these services . Disentanglement is intended to clarify responsibilities so that people will better understand who provides what service and who can be held accountable. Disentanglement also addresses the issue of which level of government should be responsible for a particular service or program, by assessing which party is best suited to deliver and fund it. The major reason AMO, in conjunction with the Province, initiated the disentanglement process was to give municipalities greater control over their own budgets by: 1) Removing GWA Allowance from municipal obligations 2) Addressing municipal concerns over control of police service budgets 3) Giving municipalities greater control over delivery of property assessment services 4) Discouraging potential downloading of costs from the Province to the municipal level 5) Permitting a more consultative relationship and greater acknowledgement of the impact of provincial decisions on local government finances . i I U34 i 5 . 3.0 BACKGROUND, cont'd 3.2 The Need for Disentanglement, cont'd AMO feels that the Phase One Agreement of the Disentanglement initiative will be a first step towards more accountable, responsible and understandable government. By making each level of government more accountable for the services they provide and pay for, and giving them more control over those services, AMO believes this will create a more efficient system of government that should ultimately result in financial saving to the taxpayer. 3.3 Working Principles: The process is controlled by the Disentanglement Steering Committee comprised of six AMO representatives and six Ontario Cabinet Ministers. The Committee operates under the following working principles: • Responsibility and authority should be determined by each government's interest. • Proportion of funding should be related to each government's level of authority and responsibility. • Neither of the partners should experience a greater share of financial responsibility as a result of this process (Fiscal Neutrality) . • Social Assistance Allowances should not be financed from current municipal revenue sources . • Decision-making for service delivery should be the responsibility of the level of government that finances the service. • The disentanglement process should ensure ongoing participation, consultation and communication with the stakeholders, employees and affected communities . The Steering Committee established five Expert Panels composed of Provincial and Municipal representatives and experts, to study individual areas of the Disentanglement initiative. The five areas of focus were: 1) General Welfare Assistance j 2) Property Assessment Program 3) Transit 4) Roadways 5) Police Service Budgets IUS � i 6 . 3.0 BACKGROUND, cont'd 3.3 Working Principles, cont'd The inception of the disentanglement process was jointly announced by AMO and the Province in August 1991, and Phase One negotiations commenced in February 1992 . 3.4 Evaluation Criteria: To evaluate any proposed disentanglement agreement, several key questions must be addressed. Do the proposed changes clarify the roles and responsibilities; and do they improve accountability to the taxpayer? Is the result of the changes a simpler, more comprehensible division of duties among governments? Will the changes ultimately result in better government for the taxpayers of Ontario? 4.0 PHASE ONE OF THE DISENTANGLEMENT PROCESS: 4.1 Announcement of the Draft Agreement: On January 23, 1993 a draft agreement for Phase One was released by the Steering Committee. The foundation of the Phase One agreement is that the Province would assume fiscal responsibility for 100% of the General Welfare Assistance Allowance costs. In return, affected municipalities would assume responsibility for costs associated with property assessment services and specific provincial highways. An appropriate adjustment (an increase or decrease) in the unconditional grants from the Province to the municipalities would ensure that the initiative remains fiscally neutral. The intended date for implementation of a Formal Disentanglement Phase One Agreement is January 1, 1994. Interim Service Agreements (a general statement of intent to maintain current level of GWA service to clients including discretionary programs) between the individual municipalities and the Province would have to be in place three months prior to January 1, 1994 (September 30, 1993) . See Appendix A: General Welfare Assistance Information - for a copy of the Interim Service Agreement (draft) . 4.2 Status of Phase One of the Disentanglement Process: AMO is currently requesting the opinions and positions of its member municipalities concerning the draft agreement. They are strongly encouraging their member municipalities to submit their comments and position to AMO (in writing) by no later than April 7, 1993. IU � 6 7 . 4.0 PHASE ONE OF THE DISENTANGLEMENT PROCESS, cont'd 4.2 Status of Phase One of the Disentanglement Process, cont,d The Board of Directors of AMO will meet on April 23, 1993 to decide if there is sufficient support for the proposed changes to formally endorse the agreement. In response to their request, this Report will be submitted to AMO, following approval by Council, as the Region's position on the proposed Phase One of the Disentanglement process. 4.3 Future Issues to be Addressed by the Disentanglement Steering Committee: Issues intended to be reviewed in the later phases of the Disentanglement initiative are: 1) Community & Social Services Programs: C Other GWA - including work activity & hostels C Child Care/Day Nurseries U Long Term Care (Homes for the Aged) C Child Welfare 2) Health 3) Housing 4) Tourism & Recreation 5) Culture & Communications 6) Natural Resources (Conservation Authorities) 7) Other Public Safety 8) Transportation issues - not included in Phase One G Disabled Transportation G Ministry of Health Funded Transportation Programs C Airports 9 ) Environment - entangled programs not addressed in Phase One i i I 8 . 5.0 PHASE ONE DRAFT AGREEMENT: 5. 1 Overview: 5.1.1 Fiscal Elements: The Disentanglement Phase One Draft Agreement states that: 9.1 Ontario and the municipal sector agree that the fixed value of the tradeoff will be $340 million. TABLE 1 .0 THE FINANCIAL PICTURE . NEW ROLES AND RESPONSIBILITIES VALUE Costs being transferred from affected municipalities to the Province: Municipalities 20%funding of GWA at a negotiated value $340 M Costs being transferred from the Province to all municipalities: A) Property assessment service: $tar M B) Responsibility for specific highways actually serving primarily local traffic: $40 M C) Reduction In provincial unconditional grants to all municipalities: $165 M Net shifts In funding responsibilities at the time of the agreement: $ 0 M The foundation of the Phase One agreement is that the Province would assume fiscal responsibility for 100% of the General Welfare Assistance Allowance costs. In return, affected municipalities would assume responsibility for costs associated with property assessment services and specific provincial highways. An appropriate alteration in the unconditional grants from the Province to affected municipalities would ensure that the initiative is fiscally neutral . 5.1.2 Non-Fiscal Elements: Non-Fiscal elements of the Disentanglement Phase One agreement include: A) An annual joint planning meeting of key Cabinet members and AMO representatives to discuss matters of mutual interest, B) Introduction of amendments to the Police Services Act in the Spring of 1993 to provide municipalities with greater flexibility and control over budgeting for police services . i 9 . 5.0 PHASE ONE DRAFT AGREEMENT, cont'd 5.1.2 Non-Fiscal Elements, cont'd C) The Province and individual affected municipalities will be required to enter an Interim Service Agreement with respect to the transfer of GWA responsibility. The intention of this agreement is to define and ensure continuation of the present level of services and staffing provided under the GWA. 5.2 Analysis of Major Components: 5.2.1 Estimated Financial Impact on Durham Region: TABLE 2.0 PROGRAMS DURHAM REGION ANNUAL COSTS ($millions) 1994 PROJECTION 1994 1995 PROVINCE'S PROJECTION PROJECTION ESTIMATE OUR ESTIMATE OUR ESTIMATE (using 1992 costs) (using 1992 costs) (using 1992 costs) 1. Reduction in GWA Allowances (14.0) (14.0)(1) (14.0) 2. Highways to be transferred -Annual Operating Costs 1.5m 1 5 - Capital Costs (start-up) 2.3m(3) - - Construction Needs 1.2m(4) 1.2 - Estimated Credit from M.T.O. (1.8)mm (1-8) -Additional Costs of Police Servicing nil('O nil Total Costs of Highway Transfer 1.7m 3.2 0.9 3. Cost of the Property Assessment Function 4.7 4.7m 4.7 4. Reduction in Unconditional Grants from the Ontario Government 7.6 7.6 7.6 NET EFFECT- SURPLUS(DEFICIENCY) NIL 1.5 0.8 NOTES: (1) Based on 1992 Actual Net Municipal GWA Allowance (See Appendix A) (2) Province has indicated that 93.5 km of highways are to be transferred to Durham Region,whereas our calculations indicate 108.6 km. The costs In this table is based on 93.5 km and may have to be revised If the actual amount of transfer is 108.6 km. (3) Additional Fleet Equipment Required for highway maintenance. (4) Total requirement of$12 million has been annualized over a ten year period in amounts of$1.2 million annually. No additional engineering, administrative or overhead costs have been included in this estimate. (5) A credit provided to Durham Region, by the Ministry of Transportation of Ontario,to reflect the reduced budgetary requirements for transferred highways. (6) Durham Regional Police estimate that there will be no additional costs to service these new highways. (7) Estimate obtained from Expert Panel on Property Assessment Services, October 1992. See Appendix D: j Property Assessment Program Transfer Information. (8) Calculated as 93.5 km multiplied by the provincial allowance of$17,000 per kilometre. 039 i i i 10. 5.0 PHASE ONE DRAFT AGREEMENT, cont'd 5.2.1 Estimated Financial Impact on Durham Region, cont'd The information in the first two columns of the analysis in Table 2 . 0 is an estimate of the financial impact in 1994, whereas the third column contains a projection of the effect in 1995 (the second year of the agreement) . For purposes of the 1994 and 1995 projections, it has been assumed that inflation will not have a noticeable effect on costs . As can be seen from the previous table, there are significant differences between the Province's estimates and the estimates of the Regional Municipality of Durham. These occur primarily in the costs of highway transfers and the offsetting reduction in unconditional grants. The differences are explained in greater detail in Section 5 .2 . 3 of this report. As a result of these differences, it is projected that Durham will experience a net annual deficiency of approximately $1.5 million in 1994 and, a surplus of $0. 8 million in 1995 and in subsequent years . If the 1996 cost projections are consistent with those of 1995, then Durham may achieve fiscal neutrality by the end of 1996 . It should be noted that Durham has estimated GWA costs in 1993 to be approximately $16 million, which represents a $2 million increase over the costs in 1992 . The $2 million increase in GWA costs, assuming. that it continues into 1994, is a cost that would otherwise have been borne by the municipality. The effect of this increase is to offset the projected deficiency in 1994 of $1.5 million and provide Durham with a small surplus amount ($0 .5 million) . In 1995, following this same assumption, Durham may experience a surplus of $2 .8 million. Durham's allocation of the $340 million is based on preliminary estimates of GWA costs by both the Province and AMO. AMO is presently preparing more accurate figures based on the municipalities ' actual 1992 year-end figures . I 4 0 11. 5.0 PHASE ONE DRAFT AGREEMENT, cont'd 5.2.2 General Welfare Assistance Allowance: 5.2.2.1 The Disentanglement Phase One Draft agreement states : 7.1 Ontario and the municipal sector agree that Ontario will assume 100% of the costs of the General Welfare Assistance Allowances (GWA) effective January 1, 1994. 7.2 Interim service Agreements between Ontario and affected municipalities will be signed. These agreements, effective January 1, 1994 will maintain current levels of service or discretionary programs funded through GWA. The agreements will remain in effect until broader social assistance legislation is in place. 5.2.2.2 • PROVINCE TO BE RESPONSIBLE FOR 100% OF GWA COSTS The Province is presently responsible for approximately 80% of these costs and the municipalities 20%. The underlying justification for this transfer is that the taxing ability of the municipalities (property taxes) is not an effective means of supporting an income redistribution program. The progressive taxing ability of the Province is better suited to fund such a program. Further, by making one party 100% responsible (both fiscally and politically) , it is hoped that the program can become more effective and efficient. The $340 million is a negotiated value for GWA allowances that both sides agreed to accept. The Province's initial negotiating position was $400 million and AMO's was $285 million. Both parties examined the cost trends and the probable future costs, economic trends and other factors, to reach a compromise figure of $340 million. i I I i 12 . 5.0 PHASE ONE DRAFT AGREEMENT, cont'd 5.2.2.3 ESTIMATED COSTS - As set out in Table 2 . 0, the estimated cost to the Region of Durham in 1992, of GWA allowances is $14 . 0 million. A concern was raised that GWA costs are unusually high at this time due to the present economic conditions . One may expect these costs to decrease as the economy recovers . AMO's position is that, historically, welfare costs do not decrease. Even in post recession periods, when unemployment drops, welfare costs do not go down; they just don't rise as fast. 5.2.2.4 • CURRENT SERVICE LEVELS TO BE MAINTAINED - The agreement states that it will not alter the service delivery of the program. The phase "maintain current service levels " , contained in the agreement, is intended to commit both the affected municipalities and the Province to maintaining services at the same level as presently exists . Both AMO and Provincial staff indicated that the Interim Agreement is intended to be flexible and permit both parties to accommodate changing circumstances . AMO expects that all parties will operate within the spirit of the agreement and not alter the services or service delivery in an effort to shift costs to the other party. It is, therefore, expected that the transfer of GWA to complete Provincial control will not affect the existing, staffing, office space, capital acquisitions, or general delivery of services . AMO states that there would be no change for employees or recipients; the program and the people who deliver it would be the same. Further, administrative costs would continue to be shared at the same ratio (50:50) between the Province and individual affected municipalities. 5.2 .2.5 • PLANNED PROVINCIAL RESTRUCTURING OF HUMAN SERVICE DELIVERY - An additional concern of GWA delivery is the Province's planned restructuring of "human service delivery" . We understand the Province is reviewing several options for delivery of these services, including the use of "special purpose bodies " and, the use of local Ministry offices . The Region of Durham is opposed to the transfer of the delivery of these services away from the municipalities . i 13 . 5.0 PHASE ONE DRAFT AGREEMENT, cont'd 5.2.2.5 PLANNED PROVINCIAL RESTRUCTURING OF HUMAN SERVICE DELIVERY, cont'd The advantages of a municipal delivery system, relative to the other options, are as follows: • Serves as a single entry point to a wide range of services - in addition to welfare benefits, staff can direct attention to, for example, employment related training, skill upgrading and education, special assistance and supplementary aid, Federal initiatives in employment and immigration and housing and shelter programs . In contrast to this, there could be as many as four entry points if the Province creates special purpose bodies for day care, social assistance, family counselling and services to seniors . • Improves public accessibility and accountability - because of the opportunity for closer contact with the community and with the local elected representatives . This opportunity would not be present, to the same extent, through a special purpose body or through the local office of a Provincial Ministry. • More responsive to local needs - because of its knowledge of local conditions, a municipal delivery system is more likely to introduce those assistance programs which are best suited to the needs of its community. 5.2.2.6 • REGION OF DURHAM'S POSITION - It is the Region of Durham's position that the transfer of GWA to 100% Provincial control is a desirable objective. However, since this transfer is occurring at a time when welfare costs are at extremely high levels, some assurance should be provided that any cost savings that may occur in the future, due to reductions in welfare costs, will be shared with the affected municipalities. 1u4 � 14 . 5.0 PHASE ONE DRAFT AGREEMENT, cont'd 5.2.2.6 REGION OF DURHAM'S POSITION, cont'd The Region is opposed to any transfer of the service delivery function (for human service delivery) away from the municipalities . Further, it is the position of the Region of Durham that the Province should fully disclose the direction and substance of any restructuring of "human service delivery" that it is considering. Such restructuring could have substantial impact on the GWA and the municipal service delivery operations . 5.2.2.7 • SPECIFIC COMMENTS - Specific comments and concerns on the GWA component of the Phase One process, as prepared by the Commissioner of Social Services of the Region of Durham, are set out in Appendix B. 5.2.3 Transfer of Highways: 5.2.3.1 The Disentanglement Phase One Draft Agreement states that: 9.2 Ontario and the municipal sector agree that the transfer of - 2,100 km of Provincial highways is valued at $40 million. 5.2.3.2 The specific highways to be transferred to the Region of Durham are (See Appendix C: for a Regional map depicting specific transferred highways) : 1) Highway 2 from Metropolitan Toronto to Hope Township, exclusive of connecting links in Whitby, Oshawa, Bowmanville and Newcastle 2) Highway 7 from York Region to Brooklin 3) Highway 12 from Whitby to Brooklin 5.2.3.3 BASIS OF TRANSFER - The highways to be transferred are secondary provincial highways that have tended to be neglected because of their local nature. The management of these highways by the municipal government will provide for local concerns to be addressed by "grass-roots" decision-makers . Further, municipal control of entrances, signs and severance will provide advantages to the ratepayers by being accessible. Finally, local IU44 15 . 5.0 PHASE ONE DRAFT AGREEMENT, cont'd 5.2.3.3 BASIS OF TRANSFER, cont'd spending on roads should be more stable, and not subject to fluctuations caused by increased GWA commitments beyond the local control of the municipalities . 5.2.3.4 • COST ESTIMATES - The province based its estimate on a transfer of 93 .5 km of highways to the Regional Municipality of Durham. However, the Region of Durham's analysis estimates the transferred highways to be 108. 6 km. Clarification of this issue is underway. Cost estimates included in this report are based on the provincial estimate of 93 .5 km. Durham will assume approximately 4% of the proposed highways to be transferred from the province, and will be entitled to a credit of $1. 8 million (4% of $40 million) during the initial year of the Agreement. Annual operating costs for highway maintenance are estimated at $1.5 million. Therefore, only $300, 000 of the credit would be available for construction needs . Additional fleet equipment required to maintain the transferred roads is estimated at $2 .3 million. The Province has not made, and is unlikely to make a commitment for these costs. Further the Region of Durham estimates a total of $12 million will be needed for short-term construction to rectify existing deficiencies in the transferred highways. This has been annualized over ten years to generate a construction requirement of $1.2 million annually. The Province intends to transfer the highways "as is" and will not adjust the credit for individual municipalities based on present deficiencies . Durham Regional Police believe that no additional costs will be incurred in the policing of these highways. In total, the Region of Durham estimates that funding of approximately $3 .2 million will be required in 1994 to cover the transferred highways (see Table 2 . 0) . This total cost is estimated to decrease to $0 . 9 million in 1995 . i 16 . 5.0 PHASE ONE DRAFT AGREEMENT, cont'd 5.2.3.5 • DEVELOPMENT CHARGE BY-LAW - It should be noted that the transfers of these highways will require a re-examination of the Region's twenty year program with respect to the Development Charge By-Law and current levels of development levies attributable to the roads component. 5.2.3.6 OTHER ISSUES - Clarification is required from the Province on the question of the policy of providing subsidy funding to the area municipalities for roadways which are considered to be Connecting Links . The province has not announced the timing of its plan to construct Highway 407 (sections of this proposed highway will "parallel" the existing Highway 7) . Until such time as the province sets out a construction timetable for the proposed highway, there is some question as to whether Highway 7 should be considered as being eligible for transfer to Durham Region (under the terms of the Disentanglement initiative) . Should the transfer of Highway 7 be deferred, as noted above, then consideration should also be given to not transferring Highway 12 for purposes of "connectivity" . Staff are discussing this issue with the Province. 5.2.3.7 • REGION OF DURHAM'S POSITION - It is the Region of Durham's position that the transfer of these highways is a desirable component of the Phase One agreement. Although there are discrepancies between the Regional and Provincial financial data and estimates, these issues are currently being addressed and should be resolved prior to the signing of any formal agreement. 5.2.4 Transfer of the Property Assessment Programs: 5.2.4.1 The Disentanglement Phase One Draft Agreement states: 9.3 Ontario and the municipal sector agree that the recovery of Property Assessment charges from municipalities is valued at $135 million. IA6 17 . 5.0 PHASE ONE DRAFT AGREEMENT, cont'd 5.2.4.2 COMMITTEE'S PROPOSAL - Following the Assessment Expert Panel recommendations, the Steering Committee has agreed to the establishment of an assessment service delivery agency to provide assessment services to municipalities. The (Schedule IV) agency would report to a board of directors with majority municipal representation, and be funded entirely by municipalities . The Province would retain responsibility for setting assessment policy, such as establishing the legislative rights of taxpayers to appeal. The Expert Panel developed the following set of principles for evaluating options for assessment service delivery: A) "Pay for Say" B) "Ability to Pay" C) Local Responsiveness D) Minimum disruption to employees E) Standard level of Service F) Efficient Service Delivery The Region would be charged annually for a basic level of service based on a formula (50:50) which balances the need for service - "pay for say" (number of assessable properties) and ability to pay (equalized assessment) . TABLE 3.0 ESTIMATED COSTS OF PROPERTY ASSESSMENT FUNCTION ($millions) Estimated operating costs of existing Property Assessment function In the Region of Durham(Including 3.7 applicable head office and overhead costs) Estimated costs to the Region of Durham,of this function,according to the method recommended by the Expert Panel 4.7 Additional cost to the Region of Durham, of usage of method recommended by the Expert Panel 1.0 I �i4 � 18 . 5.0 PHASE ONE DRAFT AGREEMENT, cont'd 5.2.4.3 • COST ESTIMATES - The estimated cost to the Region of Durham would be $4 . 7 million based on a formula recommended by the Expert Panel. However, the 1992 operating costs of the assessment office serving the Durham Region is only $3. 7 million. The additional $1 million is the result of the application of the formula recommended by the Expert Panel. In effect, the larger, more prosperous municipalities will be subsidizing the Property Assessment Services for the other municipalities . The utilization of a Provincial Schedule IV agency to control the Property Assessment Program appears to violate the Disentanglement Working Principles . The Province will continue to exercise complete control over all policy aspects related to Program while the municipalities will acquire some control over the delivery, but pay 100% of the costs. This violates Working Principle 4 .2, "Proportion of funding should be related to each government's level of authority and responsibility" . In summary, the proposed method of transferring the cost of the Property Assessment Program to affected municipalities further entangles governments rather than disentangling them. The Province will set the policy, lower tiers will collect the taxes, and upper tiers will pay the bills. 5.2.4.4 • REGION OF DURHAM'S POSITION - The current proposal as outlined in the Phase One Agreement violates several Disentanglement Principles . The use of a Provincial Schedule IV agency will further entangle the involved governments, and the proposed cost allocation subsidizes certain municipalities to the detriment of the others. For these reasons, the Region is opposed to the transfer of the Property Assessment function to the municipalities . Further, the amount of the Reduction in Unconditional Grants be increased, even more than it would otherwise be, to offset the effect of not transferring the Property Assessment function. f J4 19 . 5.0 PHASE ONE DRAFT AGREEMENT, cont'd 5.2.4.4 REGION OF DURHAM'S POSITION, cont'd The estimated effect on Durham Region of not including the Property Assessment function within the proposed phase one of the Disentanglement initiative, is set out in the table below. As can be seen, the amount of the Reduction in Unconditional Grants has increased by $4 . 7 million to $12 . 3 million to offset the loss of the Property Assessment function (See Table 2 for estimated costs to Durham of the Disentanglement initiate which include the Property Assessment function. However, the overall net effect remains the same as before, ie. a projected deficiency of $1.5 million in 1994 and a surplus of $0 . 8 million in 1995 . TABLE 4.0 ESTIMATED FINANCIAL IMPACT ON DURHAM REGION OF NOT INCLUDING THE PROPERTY ASSESSMENT FUNCTION WITHIN THE PROPOSED PHASE ONE OF THE DISENTANGLEMENT INITIATIVE PROGRAMS DURHAM REGION ANNUAL COSTS($millions) 1994 PROJECTION 1994 1995 PROVINCE'S PROJECTION PROJECTION ESTIMATE OUR ESTIMATE OUR ESTIMATE (using 1992 costs) (using 1992 costs) (using 1992 costs) 1. Reduction In GWA Allowances (14.0) (14.0) (14.0) 2. Highways to be transferred -Annual Operating Costs 1.5 1.5 - Capital Costs (start-up) 2.3 - - Construction Needs 1.2 1.2 - Estimated Credit from M.T.O. (1.8) (1.8) -Additional Costs of Police Servicing nil nil Total Costs of Highway Transfer 1.7 3.2 0.9 3. Reduction in Unconditional Grants from the Ontario Government 12.3 12.3 12.3 NET EFFECT- SURPLUS(DEFICIENCY) NIL 1.5 0.8 5.2.5 New Rules Governing Police Service Budgets: Under the new system, Police Services Boards would have to work on their budgets in cooperation with their municipal councils . A voluntary local mediation process could be established in cases where the Police Service Board and Council disagree on budgetary items, but the Council would have the final say on the budget. I I 20. 5.0 PHASE ONE DRAFT AGREEMENT, cont'd 5.2.5 New Rules Governing Police Service Budgets, cont'd The Police Services Board would continue to have the right to ask the Ontario Civilian Commission on Police Services for a hearing if it believed that it could not provide adequate police services as a result of Council's Budget Decision. The Commission would continue to have the authority to make binding orders and to set a deadline for implementation, however, municipal councils would have the flexibility to determine the timetable for phasing in an order. The Commission must also take into account the municipal ability to pay, and the Commission's authority to require changes that would result in in-year impacts on a municipal budget would be limited to circumstances where public safety was at risk. 6.0 REGION OF DURHAM'S RESPONSE TO THE DRAFT AGREEMENT: The Region of Durham, through AMO has been an active participant in the critique of Phase One. On February 5, 1993, the Region forwarded a Memorandum to a Disentanglement Task Group, (acting on behalf of the Chair and Chief Administrative Officers of the Regions) , outlining the Region's comments, concerns and requests for additional detailed information. The comments from Durham Region, together with those of other Regions, were presented to the Province by this Disentanglement Task Group. Recently, on February 24, 1993, a preliminary response to some of these concerns was received from the Task Group. However, there are still issues that remain unresolved. AMO recently ssued a Consultation Y paper on this subject � and is offering consultation sessions, which commenced in early March 1993, to discuss various aspects of the Disentanglement initiative. Regional staff have reviewed the Consultation paper and have attended one of these sessions . This Report, following approval by Council, will be submitted to AMO prior to April 7, 1993 . i I 21. 7.0 SUMMARY: In summary, the Region of Durham supports the concept and principles of the Disentanglement initiative. However, further clarification is required of the Province, for many issues, to ensure that the principle of fiscal neutrality is maintained. Regional staff will continue to request this information from the Province and analyze all such information as it becomes available. :mg Attach. I:\REPORT3\Diaentang1e.amended I APPENDIX A DISENTANGLEMENT PHASE ONE DRAM AGREEMENT GENERAL WELFARE ASSISTANCE INFORMATION i SERVICES AND ITEMS COVERED BY THIS AGREEMENT The Province and Municipality agree that the following services and items will be covered by the terms of this Agreement: GENERAL WELFARE ALLOWANCE' (100%prov4uW fuaint_ 111194) (i) Basic Needs Allowance this allowance coven food, shelter, clothing, incidentals and non-shelter items (ii) Basic Shelter Allowance a flat rate allowance for shelter based on the number of persons in the family (iii) Variable Shelter Allowance this allowance is granted if the total accommodation costs: exceed the Basic Shelter Allowance. It is payable in addition to the Basic Shelter Allowance up to a maximum amount. ('iv) Back To School Allowance paid to consumers who have dependent children to assist with the costs of starting or returning to school (v) Winter Clothing Allowance paid in November of each year for eligible dependents under age 21 to assist with clothing needs (vi). Community Start-Up Allowance paid to consumers who are establishing new, permanent residences in the community. (vii) Employment Start-Up Benefits paid to consumers who are starting or changing employment or training programs. (viii) Child Care Start-Up Costs . i paid to consumers who are starting or changing employment or training programs and who have initial child care costs Ot - i i (ix) Pregnancy Allowance paid to eligible consumers for any six month prior or after the birth of a child (x) Special Diets paid to consumers to cover the costs of special diets as approved by a physician (xi) Foster Care paid to persons caring for a child under age 16 where the child is not their natural child, adopted or a ward of the Children's Aid Society (xii) Extended Health Allowance provides for extended health coverage to employed consumers who would otherwise be ineligible for assistance (xiii) Special Necessities paid to consumers for Diabetic Supplies, Surgical Supplies and Dressings and Travel and Transportation required for medical treatment (xiv) Hostels payment of a per diem to cover the cost of board and lodging in a hostel that is either maintained by the Municipality or an organization approved by the Municipality or Province (xv) Personal Needs Allowance paid to consumers of social assistance who are residents of Hostels, Nursing Homes and Hospitals SPECIAL ASSISTANCE: (cost share remains 50:50) (i) paid to consumers of General Welfare Assistance and others on a discretionary basis for items and services in addition to items (i) through (xv) as listed above. SUPPLEMENATARY AID: (cost share remains 80:10) (i) paid to consumers of other governmental benefits on a discretionary basis for items and services in addition to items (i) through (xv) as listed above. INTERLM SERVICE AGREEMENT 1.0 PREAMBLE The Province of Ontario and Municipalities agree that Ontario will assume 100% of the costs of General Welfare Act (GWA) allowances effective January 1, 1994. The intent of the Interim Service Agreement is to affirm that the Province and Municipality have a shared interest and mutual obligation to provide high quality service to consumers of the GWA program. The Interim Service Agreement will: ♦ provide a declaration of mutual obligations and shared responsibili ties ♦ affirm adherence to the minimum requirements for service delivery as currently presribed, including an agreement to institute approved practices for monitoring and auditing the program ♦ ensure a commitment by the Province to support Municipalities in their efforts to sustain service levels and meet service delivery requirements 2.0 TRYfEFRANIE The Interim Service Agreement will be effective from January 1, 1994 until such time as it is no longer applies as a result of the implementation of new income maintenance legislation in any municipality or until it is replaced by a new Agreement upon consent of both pasties. 3.0 PROGRAMS COVERED BY THIS INTERIM SERVICE AGREEMENT The Agreement will outline the parties commitment to protect the levels of service and administration within the General Welfare Assistance Act. Specifically, this Agreement will include the items, benefits and services provided by way of: ♦ General Welfare Allowances ♦ Special Assistance (not subject to 100% provincial funding) ♦ Supplementary Aid (not subject to 100% provincial funding) 03 i 4.0 ADINUNISTRATION The Province and Municipalities recognize that available resources impact on the ability of both parties to meet the obligations and responsibilities of service provision. 5.0 THE PROVINCE 5.1 The Province will to the extent possible: (i) provide funding for cost of administration to support the delivery of the program; (ii) continue to seek the advice of municipalities on program changes and implementation; (iii) ensure that municipalities are informed and updated through timely distribution of Directives, Guidelines and Regulation amendments 6.0 THE MUNICIPALITY 6.1 The Municipality will to the extent possible: (i) provide funding for cost of administration to support the delivery of the program; (ii) maintain management staffing structures and processes which promote effective delivery, serve the needs of consumers and respond to changes in a timely and efficient manner; (iii) serve the nerds of consumers by maintaining or improving the levels of service provided through Special Assistance, Supplementary Aid and Hostel Services; (iv) deliver the programs in accordance with the GWA Act, Regulation and directives from the Director whose provisions may change from time to time. This Agreement has been signed on behalf of the Government of Ontario by the Minister, Ministry of Community and Social Services and on behalf of the Municipality by the Chairman and the Clerk of the Corporation who has affixed its corporate seal hereto. Dated at this day of 1993 I i APPENDIX B MEMORANDUM FROM THE REGION OF DURHAM TO THE DISENTANGLEMENT TASK GROUP (acting on behalf of the Chair and Chief Administrative Officers of the Regions) DATED FEBRUARY 5, 1993 RE: PRELIMINARY COMMENTS/CONCERNS ON PROPOSED DISENTANGLEMENT AGREEMENT MEMORANDUM TO: Katherine van Kooy (On behalf of the Regional Chief Administrative Officers) DURHAM FROM: J.L. Gartley, Commissioner of Finance The Regiow DATE: February 51 1993 Munfc"Ity aounw. RE: Preliminary Comments/Concerns an Proposed Disentanglement Agreement As requested, we enclose our preliminary comments/concerns on the proposed Disentanglement Agreement. 1.0 OVERALL CONCERNS • Given that one of the underlying principles of this Agreement is to achieve fiscal neutrality between the Province and the municipalities, - -- - - ---------- - we need assurance that any----reductions in : - welfare costs (if any) that may occur in the future will be shared with the municipalities. Conversely, any unforseen events in the future, related to the transferred highways or the Property Assessment function, which may require additional, fundinq on the part of the municipalities should also be shared with the Province. • Following implementation, the Agreement should be reviewed annually for a period of at least 5 years to ensure that the principle of fiscal neutrality is being met. • These comments/concerns have been prepared without having an opportunity to review the final reports of the Roads Expert Panel, Transit Expert Panel and the General Welfare Assistance Expert Panel. • Communication between the Province and the municipalities, on all aspects of the Disentanglement process, should occur as frequently as is possible. This will allow all parties to adequately plan and prepare far their new responsibilities . i 1 01 CX\n==T_X= 2 . 2 . 0 ERELIMINARY SUGARY OF THE EFFECTS OF THE AGREEMENT For your information, a summary of the effects of the proposed Disentanglement Agreement on Durham Region has been set out below. At this time, due to the many assumptions that have been made, there is "imprecision• within this estimate. Es&r&od Ef od on Dwttarn Region 1994 Annual Program Coat i nzon 1. Reduction in GWA Mowances m;$14.0) 2 K+gn xy assw)&d by Region 1012 . operxJng costs Z, • capital costs (raft•up) m w ot12 . construction needs wr —_ • . es*r ted credo from NLT.O -- -- ade6onsi ooss of podce serAdng S. Cost of funding the Property ALssessnnen2 Of4ice n4J 4. Reduction in Uncond?tiorW Grants from the Protitnw a Net effect to Durham Region Notex M See Anachrnert<I. w Province has ir�catsd that 93.3 lan of hiQR+Mrys an to be tranafemd 10 Durham Re> L wfsertis our calculatlora irelcala 10&6 inn The att:ctted cost estkmates are based on 90.3 tan w4 my have to be revised if the awl amount of transtsr increases to 106.6 inn w ToW requirement d$IZM has been annualized over a ton year perfod to amounts d 112M annuatty. Not ays+lable 9 this tirmo. w Estlmarre obtained from Expert Panel on Property llsaeasment Serv+cos October 19W- Elled of coat of ttw"?term'3 to reduce the amount of the reduction it uncondrttorw grasm trflm the Province to Durham Region. A No ddrtional engineering, adrrtinistrs?» or ovefiead costs have begirt inducted in this essrmesa. w To offset the ef`ect of the Otto heats. 3 . 0 Q010 ENTS ON THE G'AA ALLOWANCES PORTION • The memo (Attachment 2) from the Commissioner of Social Services, Region of Durham, sets out our comments/concerns on this item. i O 2 � i 3. 4 . 0 COUNTS ON THE TRANSFER OP HIGHWAYS 4 . 1 _Aghways 4 . 1. 1. Short-Term Construction Needs Staff of Durham Region have undertaken a preliminary assessment of the short-term construction needs for the subject highway transfers to the Region and we estimate a total of $12M will be required in the short- term to rectify existing deficiencies. The calculated credit to be applied to the additional road transfers in our case is apparently 4% of $40M or $1.6X. Whereas this amount of additional allocation will be sufficient for operational and maintenance work, we estimate only $400,000 a year will be available to apply to actual construction needs. We understand that MTO based its capital estimate for construction on a 7-yeas average of actual MTO capital expenditures, and that the total amount for the Province as a whole was based entirely on work actually done and does not necessarily reflect needs (the portion related to capital expenditures represents $16M of the total allocation by MTO of $40M) . We are anxious to receive IM's relevant road inventory and structure sheets at the earliest opportunity, so that we can compare them with our own assessment and refine our numbers. If our assessment of $12M for Durham Region is accurate, we are concerned about the financial liability which will be placed on the Region upon transferring the roads. 4 . 1.2 Long-Term Growth-Related Needs In addition to the -Now- needs identified above, we have estimated a total of $25M for capital expenditures related to widening of existing highways . This requirement will be dictated by future growth and subsequent increases in traffic volumes. The cost of these -Growth-Related- needs would have to be addressed in a review of the Region's Development Charge By-Law and associated cost estimates . 03 C*\nX==.X= a60 4 . 4 . 0 COHMNTS ON THE TRANSFER OF HIGHWAYS (cont'dl 4 . 1.2 Long-Tern Growth-Related Needs (cont'd) Timing for these improvements would be in the 10 year ( and beyond) range. 4 . 1.3 Proposed 1993 Projects Again, we are anxious to receive a list of proposed 1993 projects, as this may diminish somewhat the total needs in the. system within Durham. 4 . 1 .4 Special Subsidy Consideration What opportunity will there be for special subsidy funds (supplementaries) to address major construction needs on highways being assumed by Durham (i.e. "Hole in the Walla at .. Newcastle, which is estimated_ to cost $8K)? 4 .1.5 Calculation of Equivalent Lane Kilometres Our calculation of equivalent lane kilometres ( 108 .6 km) does not quite match the amounts published for Durham (93.5 km.) to date. The difference of approximately 15 . 1 km could make a difference of $260,000 when applied to the allocation of the $40M credit. We would like an opportunity to review these figures with MTO staff before finalization. 4 .1 .6 Annual Costs Our preliminary estimate for Durham Region for annual operating and maintenance costs is $1 .2M, on the basis of assuming an extra 93.5 " km of 2-lane highway. In addition to annual operational costs, we have identified the need for additional fleet equipment, estimated at $2.3 million in total. This initial capital figure could be reduced by using contractors. However, the use of contractors and/or rented equipment would then increase the previously quoted annual costs. o4 I U6 i • s. 4 .0 MMNTS ON THE TRANSFER OF HZGHWKY$ (cont'da 4 . 1.7 Status of Highway 47 Although Highway 47, from the Regional Road 21 junction easterly to Highways 7/12, is identified as a transfer, the length associated with this section of highway has not been used in determining total lane kilometres . We understand this may be a special case, involving a trade-off with our Road 21. If so, this matter should be discussed in the near future with MTO. 4 . 1 . 8 We strongly support the Province's suggestion of the possibility of some form of operating agreement with municipalities to** the operational transition, e.g. , for a Region to assume responsibility at the end of the snow removal season. However, the Region is not interested at this time in considering transfer of equipment or manpower. 4.1.9 MTO should fund the cost of the transfer, i.e. , change of signing, etc. 4 .2 Additional Police Servicing Costs for Transferred Highways • An estimate of the costs of this item is not available at the present time; we anticipate that it will be available in the near future. The effect of the additional police servicing costs would be to reduce the amount of the reduction in unconditional grants from the Province to Durham Region. • To ensure consistency in calculation among the Regions, and that certain costs are not overlooked, it would be useful to circulate a sample calculation to all Regions. I i c�vxasaar.�c 05 id 6 I 6. L 5 . 0 90MMBNTS ON THE PROPERTY ASSESSMENT FUNCTION Our comments and concerns, in this regard, are based on a review of the Final Report of the Expert Panel on Property Assessment Services (dated October, 1992) together with brief discussions held with the Treasurers of the area municipalities. Although this Final Report (referred to as the Expert Panel 's Final Report) provides a good overview and examination of the issues, it lacks the detail required to make a far reaching decision. 5 . 1 Structural 5. 1 . 1 It - is of primary concern that any nev structure (dealing with the property tai assessment function) remain committed to standardization across the province. This will prevent an individual municipality from manipulating the process to gain an unfair advantage in attracting/keeping businesses:----- 5. 1. 2 A single Board of Control over , the organization would likely not be sufficient to exercise adequate control. It may be necessary to also have sub-committees covering policy questions, levels of service, staffing, administration, etc. Representatives of different municipalities would be appointed to the sub-committees on a rotating basis. 5. 2 Service Level Issues 5.2. 1 A survey of Durham Region's Municipal Treasurers indicate general satisfaction with present service levels. However, certain comments should be highlighted; • The level of service has decreased over the past several years; this was attributed to reductions in levels of staff • During "Boom" construction years, response time of the assessment office was slow. i 06 i i 7. 5 .0 COMN2NTS ON THE PROPERTY ASSESSMENT FUNCTION (cont_d1 5.2.2 The Expert Panel 's Final Report (p. 23) stated that existing staffing levels of the Property Assessment Program are • *inadequate to service the needs of high growth areas • and "Property Assessment Program now operates at full capacity .. . existing staff levels are also inadequate to provide additional services to municipal clients* . It, therefore, appears that reform or expansion is necessary. 5 .2 . 3 One deficiency of the current structure is the lack of local input. With the new Property Assessment Program controlled by a board of directors elected by the AMO, - it will still remain. a centrally..controlled organization._ • What policies or procedural mechanisms will be implemented to ensure responsiveness to local service needs? 5 .2.4 Continuation of research and experimentation in new Technologies (ESPRIT PROGRAM) to provide more efficient and effective service should be continued and encouraged. 5 . 3 Accountability 5.3.1 Policies i Procedures relating to individual municipality's information requests should be established to ensure that all municipalities are treated in a fair and equitable manner. 5 . 3 .2 A mechanism of accountability to the individual municipality's requests should be established. Perhaps a Complaints Committee should be established for the individual municipality (including the ability to appeal a decision to the Board of Directors) . I 5 . 3.3 If the new structure continues to rely on the Ministry of Revenue's Information Technology Division for information processing needs, changes will be required to the existing accountability relationships. 0'7 � ocwi,omo:.� �_� 6 4 i 5 . 0 COKMENTS ON THE PROPERTY ASSESSMENT FUNCTION (co_nt'di 5 .4 Expenditures 5 .4. 1 administration/Personnel and Data Support expenditures for the Property Assessment function, amounted to $14 .8 million, or 111 of the total expenditures. Since these costs are allocated from other departments of the Ministry; more information is requested concerning the allocation. 5 .4 .2 By transferring the policy and fiscal responsibilities to the municipalities; will the municipalities also be inheriting the liabilities of the Property Assessment Program? • For example, - if retroactive public service pay equity or additional coverage under Workers Compensation Program legislated; will the municipalities be liable for those costs attributed to the period while the Property Assessment Program was under provincial control? • Property Assessment Program defends *approximately 100 - 125 thousand assessment appeals each year" (Expert Panel 's Final Report, page 9) . Will a mechanism be in place to ensure that the province covers the costs and awards of any appeals relating to the period of Provincial control? 5.4 .3 Both short and long term operating budgets and forecasts (including a strategic plan) would be extremely helpful in analyzing the impact of this initiative. 5.5 Allocation of Costs to Users 5 . 5.1 If responsibility for this operation is passed over to the municipalities, will they become the "owners " of the informational databases? • What obligations will the municipalities inherit from the prior structure to share information? •. Will the new Property Assessment Program be permitted to implement service charges on Provincial Government Organizations that require access to data, especially the Boards of Education. U65 i 9 . 5 .0 COMMENTS ON THE PROPERTY ASSESSMENT FUNCTION (cont'd 5.5.2 The Expert Panel 's Final Report recommended that the new Property Assessment Program • •charge municipalities for a standard level of service available to all municipalities across the province . . . because it is administratively simple and satisfies the Panel's commitment to provide the same level of service to municipalities of all sizes and financial capabilities " (page 29) For greater clarification, there should be a more precise definition of this level of Service. 5.5.3 Certain services offered by the Property Assessment Program are considered optional to the municipalities (Expert Panel's Final ---- -- - - - -- Report, Appendix D) .--Wi1-1-municipalities that.- request these services be charged an additional fee? 5.6 Other • It may be beneficial for the municipalities, as a whole, to hire an independent financial advisor to review the finances of the Property Assessment program, prior to the date of transfer. • Similarly, following the transfer, the annual finances of the Property Assessment program should be audited by an independent group. if you require any clarification on these comments, please contact me at your convenience. J.Lj pdrtley, CXh Co ssioner of Finance Attach. JLG:dlk cc: D.R. Evans, Chief Administrative Officer G.H. Cubitt, Commissioner of Social Services V.A. Silgailis, Commissioner of Works 09 I i� 66 A E C a, 1.992 ACTUAL MI�NICIPAI GWA ALLOWANCE EXPFtininJRES Name of Municipality/ Dlstrist Welfare Board: REGION OF DURHAM SOCIAL SERVICES Contact Person: CRAIG T. BROWN, MANAGER ADMINISTRATIVE SERVICES Telephone: (416) 432-6104 Fax (4161579-1386 1992 ACTUAL MUNICIPAL GWA ALLOWANCE EXPENDITURES (Municipal Share Only) (A) IN ILLUSTRATION BELOW = = 15,742,,g 1992 ACTUAL MUNICIPAL RELIEF = IC) IN ILLUSTRATION BELOW = 1,752,C 1992 ACTUAL NET MUNICIPAL GWA ALLOWANCE EXPENDITURES =(A-C) IN ILLUSTRAT BELOW = * 13,990's 11.ID • ,motional�JI ���� E5 1 1993 .E,,.of SOC"0'.S i 10 •• 1 I 7 . . . Page 1 DURHAM interoffice Memorandum The Ae9►onet Municipality To j, L Gartley, Of Durharn Gommistioner of Fl.nanm From G. H. Cubit:4 Date: Comndssloner of Social Services. February S, 1993. Re DisentameMent Agrecment:• information P4quIremenix. L ?fie foTlorFing comments are prepared as t consequence of Me request of Ms. Katherine van Kooy, forwarded to tqy attention W action by Mr. D. R Evans, Chief Administrative Off. 1 trust you will find the comments of value in your response on behalf of the Regional Municipality of Durham to Ns. ran X00,�- 2, As you are aware, we are currently reviewing the affected General Welfare assistance net cost items to ascertain more clearly the financial impact of the tentative agreement, As It Appears At this time, an amount somewhat less than 14 Million Dollars would app-car applicable to the Regional Municipality of Durham. 3. There are some questions which exist with rcgard to the area of domlcWAjy hostels. Given thAt the agreement appears to still foe the 10()% funding of domiciilary hostel costs, it quactlon 1s r2lW as to whether the Province of Ontario will be providing eohal purchase of service contracts with such facilities or. and discretion exist with reg&A to the continued negotiation ezecuttoa of such domiciliary hostel Agreements 4. As you art aware, items provided under special assistanct and supplementary add have been provided at municipal discretion. Tts• agreement does call for an undertaking to maintain discretionary Items covered under these two categories at the same level as established at the time of the agreement. There msy be some need for additional clariflc>itlost on what municipal dlscretlo1,If any,wM rernala within tbeso two cost shared areas. ll 6168 pig Following rnm the above comment, there is a requirement to h.an the matter of supplementary aid and spccfal assirtance, along with other discretionary are-as, defined more clearly for purposes of evaluatlon of the agreement For example, does the aVeem'eai Include such programmes as employment, chlld dare, ellgibi'My review officers, purchase of service contrada, educatlonal sapport programmes, etc., to the discretiona.ty package whist the municipality must agree to maintain after the new funding agreement Is signed? Minimally, some clarilicatlou with regard to this matter would seem essential. 6. Further to the above, it is essential to have a clear understanding of what Is required in the undertaking to maintain the discredonal programmm Does this mean that they are to be maintained at the same level as evident In 1992, maintained at the same availab'Tty per case a.s was rvidcnt in 1992, maintained at the same nscal Investment that was evident In 1992, or,having estabilshed on Mid basis the equatability gill be adJudicAted, will the date be 19A 1993, or the date at which the agreement takes effaxt on January 1. 1994! As you can see, depending upon what measure h used to define the level of provision, and depending upon the date that 1s used to define the effective period, there can be significant diffcmnces for the municipality on Its agreeing to maintain dlscredonary programme areas at the same level. 1. With this agreement, and the clear statement that It does not effect delivery, we are operating under the assumption that the current integration agreement, with all of Its components of staffia& staffing ratios, and subsidy approvals, will remain totally In eftd alter the signing of the Lnlerim agreement proposed. L We are also of the opinloa that the current system being utilized Ibr the claiming of subsidy amounts, will continue. In essencr, we assume that the claim will o* vary by the amount or subsidy that Is being requested, In other words, It will move from 80 or 90% subsidy to 10M. I 9. 'Mere Is some question as to whether or not municipalities will assume the costa associatcd with postage as tt applies to the de.11yery of the 100% funded provincW Income assisuace packages I . . 3 i 1 � i ; 4f? `i i 10. Again, as was noted above, the assumption is being inside that the administration process, regarding the subsidization of staff, omit space, capital acquisitinnA, etc, which has beoi In plan within the lnteotlon agreement evident In the Re&W Munklpal* ed Durhaat, wlll remain In tact fbllowing the ezecutlon of dds orw agreement for the tending of General Welfare Assistance payments. 11. As you om z" from the above, the most stgnlAcant area of question centres around Items Included In the ovtr-all discretionary component referencod In the agroOment, and the effective date of that undertaking to maintain similar levels, and the measure thst Is being used to deflne the level. Siml put,what Is Included, ss . of what date, and on what measure' 12. 1 trust these comments will be of some assistance to you as you put together the overaTI regional submission with regard to this mattes GA H. butt, M.S.W., Commissioner of Social Services. GHC;bc P.G - Mr. D. R. Evans, P. Eng., Chlef Administrative Weer. APPENDIX C A MAP OUTLI1vING THE HIGHWAYS TO BE TRANSFERRED TO DURHAM REGION AS PART OF THE DISENTANGLEMENT INITIATIVE - iii v 4 v t.eoskdote TOWNSHIP p I OF BROCK 0 o DURHAM OF UXBRIDGE >v REGION fF VO Uxbridge as �GJ LEGEND Port P sA :3 MMI NOW NEEDS 0 c Goodwood CJ GROWTH RELATED NEEDS 0 0 Q) TOW SHIP OF SCUGOG 0 "'""� HIGHWAYS tea; v RAIL LIDS C.P. NAZI 0 �� > —{}— REGIONAL ROADS } Q • Myrtle Stoti n = Ro ton Burke on ore ont Ashburn 0 TOWN OF C TY OF WHITBY 0 HABIA Enniskillen iskillen OWN OF x15.0 M Bro Columbus +� NEWCASTLE TOWN 0 v � PICKERING a b = Ham ton •Kendot C0 v P TO co Orono D cQ'. A ax itb c X Pi ring tat M „N ourtice _ Bowmo ville Newtonvill 83,0 Newcostle � t C.P. PAn -� ssi.b Mr -c $0.6 M Z SCALE C.1j. LAKE ONTARIO C.P.R. o , : aces s • • a BRIDGE 88.0 M (NOW NEED) '—' APPENDIX D DISENTANGLEMENT PHASE ONE DRAFT AGREEMENT PROVINCIAL HIGHWAY TRANSFER INFORMATION i SUMMARY OF HIGHWAY TRANSFERS REGION/COUNTY PROVINCIAL HIGHWAY TRANSFER Actual Distance 2 Lane Equivalent (Km REGION DURHAM Yes 68.7 93.S HALDIMANO Yes 33.0 34.3 HALTON Yes 19.0 38.0 HAMILTON-WENTWORTH Yes 59.9 69..8 MUSKOKA No 0.0 0.0 NIAGARA Yes 72.0 74.1 OTTAWA-CARLETON. Yes 53.7 55.0 OXFORD Yes 24.6 27.9 PEEL Yes 23.2 34.7 SUDBURY No 0.0 0.0 TORONTO (METRO) Yes 22.2 66.4 WATERLOO No 0.0 0.0 YORK Yes 81.3 162.4 COUNTY B RANT Yes 64.4 72.4 BRUCE No 0.0 0.0 DUFFERIN Yes 27.8 :27.8 ELGIN Yes 69.4 71.0 ESSEX Yes _ 30.5 30.5 FRONTENAC Yes 167.0 176.6 GREY' No 0.0 0.0 HALIBURTON Yes 44.1 44.1 HASTINGS Yes 114.1 116.8 HURON Yes 72.7 72.7 KENT Yes 32.6 32.6 LAMSTON Yes 97.3 97.3 LANARK Yes 53.9 53.9 LEEDS AND GRENVILLE Yes 94.7 101.8 LENNOX AND ADDINGTON Yes 43.0 43.0 MIDDLESEX Yes 69.8 69.8 NORTHUMBERLAND Yes 66.1 66.7 PERTH Yes 4.7 4.7 PETERBOROUGH Yes 121.4 124.0 PRESCOTT/RUSSELL No 0.0 0.0 PRINCE EDWARD No 0.0 0.0 RENFREW Yes 206.6 206.8 SIMCOE Yes 53.2 53.2 STORMONT D t£ G Yes 72.1 72.1 VICTORIA Yes 115.8 115.8 WELLINGTON Yes 20.1 20.1 TOTAL 2.099.1 2.329.8 For more information on the actual highways to be transferred, please call the Provincial-Loos/Relations Secretariat at 585-7320 01 i 4 i SUMMARY OF HIGHWAY TRANSFERS BY REGION tlrvY. HWY. hWY. 2 LANE LINK !OF CONNECTING REGION NO. D/ST EQUN LINK 2 LANE HW . LOCATION LINK LOCATION DIST. EQUIV LANES DURHAM 2 15.7 31.4 FROM SCARB/PICKERING TOWN LINE WHITBY(9.45) 21,0 43.2 4 TO OSHAWA E.LIMIT AND OSHAWA(11.5) DURHAM 2 11.2 11.2 FROM NEWCASTLE E.LIMIT - TO DURHAM/NORTHUMBERLAND BDRY DURHAM 7 19.6 19.6 FROM N.JCT.YORWOURHAM BDRY TO S.JCT.HIGHWAY 7112(BROOKLIN) 2 DURHAM 12 6.6 6.6 FROM WHITBY N.LIMIT TO HIGHWAY 7 2 DURHAM 2 9.1 16.2 FROM OSHAWA E.LIMIT BOWMANVILLE 3.1 6.3 4 TO BOWMANVILLE E.LIMIT DURHAM 2 6,1 6.1 FROM BOWMANVILLE E.LIMIT NEWCASTLE 0.5 1.0 2 TO NEWCASTLE E.LIMIT YORK/DURHAM 7 0.4 0.4 FROM S.JCT. �-- (RUNS ON BDRY) TO N.JCT.OF YORK/DURHAM BDRY 2 i..:.:Q.....�.".^.�f�liS���.,tu:l1R'��� j'�y��. .� .l•��J .,1f.�'i^/!�{�,���pp }} �+���•'�•r'��`%(t��•.'i'•�1''t'1'�1'•y' M.'!^t!`"�7! y (� � {.�i>;F:.'.,� I�k.,. tl..... ...it:fnrl:�:......,t.Y.�:N:lk�:i%.k'S: ':l' ':i '{� A7JiAiA'1::.�(IL�fi;�iw.l:/.`:!l''v!•r�1�(i1yl:��"'`,r�.t 'g'1C�'.'.�!1�. ji�."t,.�.'.�•.Ot'�;a �r m•�+�••S HALD-NORFOLK 7191 2. 9 4.2 FROM S.JCT.HIGHWAY 6 • TO N.JCT.HIGHWAY 6 NOT INCL MID-SECTION 214 HALO-NORFOLK 19 3.6 3.6 FROM ELGINIHALO-NORK BDRY. TO TILLSONSURG S.LIMIT 2 HALD-NORFOLK 24 26.5 26.5 FROM HIGHWAY 59 � r•.•.�>Vv.. vov••.r .•Ka..+r n TO SIMCOE S.LTS• 2 t'}' T. ...�.r*�.f�.�.+�.nyt.., �C s''`'> �'. .i.'`r:£��"�'y3';+��a•� ��`'(�1t }�" t :' �r.::�.:.. �rx.: !.!,• 'I b� NUJh i4i. � llt r.. ....E�,�,:..�..y: ;..i'',.',.,`•lilt'r b.. Y>?9,ilL �. � 7Q ,!�! •• r3`.Sl.'I..l?,..a,�l`ist3.....a.l::,..X.:i.�..t�)i't?�i.�t;s3xlt•?'��t'��. L rYt�� HALTON 5 19.0 38.0 FROM HIGHWAY 403 TO W.OF WALKER'S LINE 4 .tST�►LP4�:Y4 $ i�iia"ir6ii'?Ik�insf1J' s('� . 4i ? •7f1� i` �1n.� r:xrt. i..u:11et2k.7Y1, �:.: •� s,. t,.;,� r l ,7 HAMILTON/ WENTWORTH 2 2.5 5.0 FROM HAMILTON DR.ANCASTER TO E.JCT.HIGHWAY 53 HAMILTON/ 2153 6.9 13.6 FROM E.JCT.HIGHWAY 53 WEN-WORTH TO HAM-WENT/BRANT BDRY. 4 HAMILTON/ a 10.1 10.1 FROM HAM-WENTINIAGARA BDRY. WENTWORTH TO STONEY CREEK E.LIMIT 2 HAMILTON/ 6 6.5 8.5 FROM DUNOAS N.LIMIT WENTWORTH TO HIGHWAY 5 PETERS CORNERS 2 HAMILTON/ 53 6.2' 6,2 FROM HAMILTON W.LIMIT C) WENTWORTHI TO E.JCT.HIGHWAY 2 2 HAMILTON/ (V 53 3.7 4.2 FROM HIGHWAY IWAY 20156 WFNTWORTII 2/4 TO STONEY CREFK/lIAMILTON I IMIT VALUE OF HIGHWAY TRANSFER UNDER PHASE 1 OF DISENTANGLEMENT Wifil NO CHANGE IN MTO ALLOCATION TO UPPER TIER MUNICIPALITIES Length of Propolllon Gross 1992 Adjusted 1992 incrsass or Not hlphwal tanslsr of Value of MTO MTO sNoo. (Decrease)in Value of (2 Ions sp.) Tansler Trsnsku Allocation IncL lransfsr MID allocation Transfer COUNIY/REOION km % 3 3 3 $ l (Al 8 - A 330 C • 8 • 40M D E IF) E - D O .(Cl- F HE 0IONS: DURHAM 93.5 4.01% $1.605.266 $6,476,000• $6.243,699 ($232,301) $1,637.569 IIALDIMAND-NORFOLK 34.3 1,47% 666.692 6.722.600 6.660.513 (62.261) 651.179 IIALTON 36.0 1.63% 052.417 4.220,600 4.245.450 24.650 627.766 HAMILTON-WENTWORI 69.6 3.00% 1.166.366 9.672,400 10.071.264 96.664 1.099.502 METRO TORONTO 66.4 2.05% 1.140.012 36.179.000 36.179,000 O 1.140.012 MUSKOKA 0.0 0.00% O 7.059,400 6.705.950 (1.153.450) 1.153.450 NIAGARA 74.1 3,19% 1.272,212 6.970.500 0.629,112 (341.366) 1.613.000 OTTAWA-CARLETON 55.0 2.36% 944.261 26.107.200 22,942.144 (2.165,056) 3.109.343 OXFORD 27.9 1.20% 419,011 2.917.100 3,011.047 93,947 365,064 PEEL 34.7 1.49% 695.759 6.669.300 5.671.171 161.671 413.600 SUDBURY 0.0 0.00% 0 7.776.100 7.240.664 (537,216) 537.216 WATERLOO 0.0 0.00% 0 9,025.400 7.7io.390 . (256.010) 266.oto r YORK 162.4 6.67% 2.748.222 11.161.600 12.146.671 963.371 1.622.651 COUNTIES BRANT 1 72.4 3.11% 1.243.025 1,640.200 2,052.066 412.666 030.357 BRUCE 0.0 0.00% 0 3.572.600 3.161,565 (391.215) 391.215 DUFFERIN 27.0 1.19% 477.294 1.146,600 1,355.301 209,701. 267,593 ELGIN 71,0 3.05% 1,216,909 0.206.000 5,725.152 (543.640) 1.762.636 ESSEX 30.5 1.31% 523.650 3. 64.900 3.732.033 147.133 376.517 fRON(t?NAC 170.6 7.56% 3,032.020 2.14,100 3.619,703 1.604.603 1.427,417 GREY 0.0 0.00% 0 6.659.200 5.016.479 (639.721) 639.121 HALIBURTON 44.1 1.69% 757.147 2.996.000 2.911.966 (66.034) 643,160 HASTINGS 110.6 5.01% 2.005.322 4.497,500 4.661.606 164.100 1.041.134 HURON 72.7 3.12% 1.248.176 4.000.100 4,736,351 (61.749) 1.309.925 KENT 32.6 1.40% 359.705 3,629.500 3.600.169 (26.711) 566.416 LAMBTON 97.3 4.10% 1,670.530 2,611.100 3,212.011 341.511 1.329.019 LANARK 53.9 2.31% 925,401 3.476.500 3,676.907 96.407 $26.995 LEEDS AND GRENVILLE 101.6 4.37% 1.747.790 4.705.000 4.970.139 205.139 1.542.651 LE•NNOX AND ADDINGIC 43.0 1.65% 730.261 2,753.100 2.960.005 206.905 531.355 MIDOLESEX 69.6 3.00% 1,196,366 4.923.600 5.462.739 539.139 659.247 NORTIIUMBERLANO 06.7 2.66% 1.145.163 2.137.300 2.415.663 275.563 666.599 PERTH 4.7 0.20% 60.694 2,647.600 2.203.391 (444.209) 524.903 PETERBOROUGH 124.0 5.32% 2.129.936 3.371,100 4.143.567 772.467 1.356,471 PRESCOTTIRUSSELL 0.0 0.00% 0 3.044.700 3.592.920 (251.760) 231.760 PRINCE EDWARD 0.0 0.00% 0 2.551.400 2,340.702 (210.696) 210.696 RENFREW 206.0 6.66% 3.550.519 3.399.600 ••' 4.102.162 762.362 2.766.137 SIMCOE 53.2 2.26% 913.303 4.110,000 4.160.367 51.767 661.590 6TORMONT O 0 G 72.1 3.09% 1.237.674 6.026.100 0.061.042 64.312 1.103.533 VICTORIA 115.6 4.97% 1,960.153 3,605.900 4.434,504 766,004 1.219,550 WELLINGTON 20.1 0.66% 345.064 4.900,500 4.441.710 (544.790) 669.664 TOTAL 2,329.6 100.00% $40.000,000 $236.952.900 $239.652.900 ($0) $40,000.000 0 APPENDIX E DISENTANGLEMENT PHASE ONE DRAFT AGREEMENT PROPERTY ASSESSMENT PROGRAM TRANSFER INFORMATION - � u77 t0 I6S'056S 069`699'ZZ6`IS ZZV 5 O dI?IO LOI1 bZ6'S6LS 99i'808'I5£`iS 1K05 jL dv,Na1J v svaNna LNOx-so.L £Lb'6Z8'ZS I£9`I9S'Otl'9S zWt' i : ;:.:.:. 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