THE REGIONAL MUNICIPALITY OF YORK
REPORT NO. 8
OF THE COMMITTEE OF THE WHOLE
MEETING HELD ON DECEMBER 12, 2013
For Consideration by
The Council of The Regional Municipality of York
on December 19, 2013
The Committee of the Whole meeting was called to order at 9:34 a.m. on December 12, 2013 with Mayor Barrow in the Chair.
The following were also in attendance:
Members
D. Barrow, G. Dawe, M. Di Biase, W. Emmerson, B. Fisch, R. Grossi, V. Hackson, G. Landon, J. Jones, J. Li, S. Pellegrini, G. Rosati, F. Scarpitti, D. Schulte, V. Spatafora, T. Van Bynen, D. Wheeler
Staff
D. Basso, L. Bigioni, B. Bloxam, P. Casey, L. Cugalj, J. Davidson, S. Gal, E. Hankins, B. Hughes, J. Hulton, D. Kelly, D. Kostopoulos, B. Macgregor, E. Mahoney, W. Marshall, R. Masad, L. McDowell, M. Rabeau, K. Strueby, J. Swan
[Accessible formats or communication supports are available upon request
Contact: Regional Clerk’s Office, @email, 18774649675 extension 71320]
TABLE OF CONTENTS
Finance and Administration Items
FINANCE AND ADMINISTRATION
Mayor Barrow chaired the Finance and Administration section of Committee of the Whole.
1. COMMUNICATION
Committee of the Whole recommends receipt of the communication from Bill Hughes, Commissioner of Finance and Regional Treasurer, dated December 3, 2013, regarding 'The 2013 Ontario Economic Outlook and Fiscal Review'.
2. REGIONAL FISCAL STRATEGY
Committee of the Whole recommends:
1. Receipt of the presentation by Bill Hughes, Commissioner of Finance and Regional Treasurer .
2. Adoption of the following recommendations contained in the report dated December 2, 2013, from the Commissioner of Finance :
1. Regional Council adopt the fiscal strategy outlined in this report, including using a Debt Reduction Reserve and asset replacement reserves to reduce the need for future tax levy debentures;
2. In accordance with the fiscal strategy, the following reserve funds be established:
a. A Transit Vehicle Replacement Reserve for the major refurbishment and replacement of transit vehicles;
b. A Land Banking Reserve for the purchase of land required for future needs that have been identified as part of the long-term capital plan;
c. A Debt Reduction Reserve to be used at the discretion of the Commissioner of Finance and Treasurer to reduce or eliminate the need to issue previously approved tax-levy funded debentures; and
d. A Sinking Fund Reserve to centralize the accumulated payments and related interest earned associated with the Region’s sinking fund debentures.
3. The following reserve funds be discontinued:
a. The Highway 48 Reserve, with any remaining funds to be transferred to an asset replacement reserve to be determined by the Commissioner of Finance and Treasurer; and
b. The Highway 7 Reserve, with any remaining funds to be transferred to an asset replacement reserve to be determined by the Commissioner of Finance and Treasurer; and
c. The Software Acquisition Reserve Fund, with any remaining funds to be transferred to the Equipment Replacement Reserve Fund.
4. The Commissioner of Finance and Treasurer be authorized to allocate future asset replacement contributions to individual asset replacement reserves based on his estimate of the required need.
5. The Commissioner of Finance and Treasurer be authorized to allocate Federal Gas Tax funding at his discretion and report the results to Council on an annual basis.
6. Up to 100%, but at a minimum 50% of the savings attributable to funding a project from the Debt Reduction Reserve that would have otherwise been payable from tax-levy sources, be placed into the Debt Reduction Reserve, such percentage to be at the discretion of the Commissioner of Finance and Treasurer.
7. The transfers between reserves as shown in Table 3 of this report be approved.
8. The Region’s Surplus Management Policy be amended as follows:
Any operating surplus, except any surplus attributable to housing operations, be allocated to reserves in the following order:
a. Contingent liability reserves including the Long-Term Disability Reserve, Workers Compensation Reserve and the Insurance Reserve up to the target levels established for them; and then to the
b. General Capital Reserve, up to its target level; and then to the
c. Fuel Stabilization Reserve when a loss, if any, has been incurred during the year from hedging transactions; and then to the
d. Debt Reduction Reserve.
Any net surplus attributed to housing operations will be allocated 80% to the Social Housing Development Reserve and 20% to the Working Capital Reserve.
Supplemental and Omitted Property Taxes received in a year will be allocated 50% to the Debt Reduction Reserve and 50% to asset replacement reserves determined by the Commissioner of Finance and Treasurer.
9. A technical adjustment to the Capital Financing and Debt Policy be made to increase maximum debt terms for roads and EMS Stations from 10 and 15 years respectively to 20 years.
10. The Long-Term Debt Management Plan attached to this report as Attachment 2 be adopted.
11. $7,946,197 million dollars be drawn from the Move Ontario Reserve to fund the Toronto-York Subway Extension (“TYSSE”) project.
12. The Regional Solicitor be authorized to prepare all necessary bylaws to give effect to these recommendations.
3. 2014 BUSINESS PLAN AND BUDGET – CORPORATE MANAGEMENT AND FINANCIAL ITEMS
Committee of the Whole recommends:
1. Receipt of the presentation by Brian Denney, Chief Executive Officer, Toronto Region Conservation Authority
2. Receipt of the presentation by D. Gayle Wood, Chief Executive Officer, Lake Simcoe Region Conservation Authority
3. Receipt of the presentations by Bill Hughes, Commissioner of Finance and Regional Treasurer regarding ‘Conservation Authorities’ and ‘2014 Business Plan and Budget – Corporate Management and Financial Items ’
4. Receipt of the communication from Brian Denney, Chief Executive Officer, Toronto Region Conservation Authority, dated November 14, 2013 regarding ‘TRCA Budget – Priority Enhancements’
5. Receipt of the communication from D. Gayle Wood, Chief Executive Officer, Lake Simcoe Region Conservation Authority, dated December 11, 2014 regarding ‘Proposal for Additional Funding 2014 Budget’
6. The draft 2014 Operating and Capital Business Plan and Budget as submitted in the report dated December 2, 2013, from the Commissioner of Finance be consolidated by the Treasurer for approval by Council on December 19, 2013 for:
Office of the CAO, Finance, Information Technology Services, Corporate Services, Regional Chair and Council, Court Services, Financial Items, Boards and Authorities as summarized in Attachment 1, with the following additions:
i. Lake Simcoe Region Conservation Authority
Compensation Adjustment $110,000
Staffing costs to support administrative operations (3 FTEs) $129,000*
Scanlon Facilities Operation $ 40,000*
Data Security and Management $ 75,000*
Emerald Ash Borer Program $ 41,000
* contingent upon funding participation from other growth partners
ii. Toronto and Region Conservation Authority
Integrated Infrastructure Protection Works $270,000
Emerald Ash Borer Response $100,000
7. An additional $150,000 be allocated from the capital budget to Lake Simcoe Region Conservation Authority for the Scanlon Infrastructure Capital Project, contingent upon securement of additional funding from other growth partners and a staff report confirming securement of partner funding and identifying the financial implications for the Region.
8. An additional $500,000 be allocated from the capital budget to Toronto and Region Conservation Authority for Kortright Municipal Servicing, contingent upon securement of additional funding from other growth partners and a staff report confirming securement of partner funding and identifying the financial implications for the Region.
ENVIRONMENTAL SERVICES
Regional Councillor Spatafora chaired the Environmental Services section of Committee of the Whole.
4. 2014 BUSINESS PLAN AND BUDGET
Committee of the Whole recommends:
1. Receipt of the presentation by Erin Mahoney, Commissioner of Environmental Services .
2. The draft 2014 Environmental Services Operating and Capital Business Plan and Budget, as submitted in the report dated December 2, 2013 from the Commissioner of Environmental Services, be consolidated by the Treasurer for approval by Council on December 19, 2013, as summarized in Attachment 1.
5. YORK-PEEL WATER SUPPLY AGREEMENT RENEWAL
Committee of the Whole recommends adoption of the following recommendations contained in the report dated December 2, 2013 from the Commissioner of Environmental Services:
1. Council authorize an amendment to the 2001 York-Peel Water Supply Agreement based on the terms set out in this report, which will reduce the 2031 York annual maximum water flow by 14.76 per cent from 388.32 MLD to 331.0 MLD.
2. The Regional Chair and Clerk be authorized to execute the revised water supply agreement with the Region of Peel.
3. The Regional Clerk forward a copy of this report to the Clerk of the Region of Peel.
PRIVATE SESSION
Committee of the Whole did not resolve into Private Session.
The Committee of the Whole meeting adjourned at 2:43 p.m.
Respectfully submitted,
December 12, 2013 B. Fisch
Newmarket, Ontario Regional Chair
D. Kelly
(905) 830-4444 x1300
