AMO Conference Aug. 14-16, 2016 Windsor, On
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AMO Conference Aug. 14-16, 2016 Windsor, On. Notes prepared by Barb Clumpus, Mayor Delegation to Min. McGarry, MNRF The conference began on Sunday with a joint delegation by Grey Cty. Warden, Al Barfoot, CAO Kim Wingrove and myself to the Minister, Kathryn McGarry and her staff. A brief prepared by our staff complete with maps overlaying the additional land proposed by the NEC was presented with the following requests: 1) to eliminate any further expansion to the NEP; 2). To provide more information regarding changes to the current designations as well as to the rationale for expansion; 3). To extend the public consultation period by at least 10-12 months beyond Oct. 31, 2016. Message from the Premier The province is on tract to achieve a balanced budget in 2017/18. Ontario pays the highest property taxes in the country Property taxes no longer fit what services we must deliver. We must find alternate sources of revenue. A property tax of $3,000 today would be $6,690 in 2025 if this were the only reliable source of revenue for municipalities. What’s Next Ontario: Choices to provide alternative funding to meet municipal needs include: Raise property taxes above inflation Broader use of user fees Look at sharing services with neighbours to share costs Lobby for legislative changes including joint & several liability; increases to OMPFto inflation New revenue tools include: a land transfer tax similar to that in Toronto; addition on income tax dedicated to municipalities; increased tax on entertainment, motor vehicle ownership AMO has proposed a 1% increase to the HST to be dedicated to municipalities. Question is how will this be equitably distributed? Nanos Research Corporation, Founder/CEO Nick Nanos identified municipal priorities as infrastructure and budget funding. The suggestion of a 1% increase on HST for goods and services has been supported by the majority of those polled as an opportunity to keep property taxes stable. Since the HST provincially has been reduced, this would not be foreign to people and would be a reflection of a true user-pay system. Safeguarding our Municpality’s Future: The Quest for Financial Sustainability: Take away points: Financial sustainability is about long-term stewardship of assets It is highly dependent upon our rate of growth; we are relatively stable, but many municipalities are declining, some are growing faster. It is important to have a fiscal strategy that articulates the relationships between capital plan, reserve management and debt management Intergenerational equity is a new buzz word and is a critical part of real financial sustainability. Future generations may not earn as much as we do now, there will be fewer of them working; they may not drive as many cars, buy large homes, they likely will have fewer children, and those later in life, the demographics are changing, and therefore the capability of future residents to pay for infrastructure that is built or funded through debt must be taken into consideration. Our fiscal capacity, infrastructure health and investment needs all have a major impact on achieving financial sustainability Asset management is essential to achieving financial sustainability and is also the greatest challenge to it. A pro-active approach now to managing future asset needs, challenges. What keeps our CAO up at night? 44% listed Succession planning 42% indicated funding and taxes on operating expenses: ie, a concern that council will cut too deep, a desire to reduce or put a hold on taxes often is reflected in depleted reserves, or deferring much needed maintenance; inadequate revenue tools 30% list funding and taxes on infrastructure as a key worry Public expectations: of too many staff, too high taxes, of staff roles and current legislative and risk realities and the ability to keep up Managing growth potential while dealing with entrenched attitudes and the perils of risk management Making User Fees and Tax Levies Work 2 The Cty of Mississauga now charges a flat fee for storm water management based upon roof surface sizes. These funds are dedicated to asset management and infrastructure replacement/rehabilitation The Town of New Tecumseh: lifecycle funding target of annual levy increase was adopted in 2014 budget. Their base tax rate increased by 70% from 2004-2015 while their neighbours increased by 40%; however their financial position strengthened over those years. They held to a 3.9% increase for roads alone for a 5-year period and will be looking at the same amount again for bridges. This is where the Municipality of Meaford was in 2010. The Municipality of Central Elgin believes in full cost recovery for user rates with equal fees for service across the municipality. They instituted paid parking on Port Stanley’s parking lots for day use (10:00a.m.-5:00p.m.). These funds pay for costly operation and maintenance of their large public beach, but allow citizens access overnight. Fees were $10/day,$1/hour, $155/seasonal paid through a machine that recorded (by IPhone) the license plate. Innovation Through Collaboration North Huron and Morris-Turnberry in Huron County have shared services including: fire protection and prevention, municipal water and sewage, but have added through collaborative consultation with staff and council from 9 lower tier municipalities, a pilot project to share public works and administration management, specifically by-law enforcement and a CBO. The Town of Deseronto’s population of 1800 people with 40% of those are low income or are on social assistance, and those services are located a considerable distance from town. Public transit partnerships with Prince Edward & Lennox-Addington Social Services opened up employment and education opportunities. Minimal financial support from neighbours was leveraged into substantially increased gas tax revenue to create a public transit system that contributed to personal independence. 3 Summary Notes: AMO Windsor, August 14-17 2016, Councillor Shirley Keaveney I`d like to begin by expressing my appreciation to staff for making the last minute arrangements for me to attend AMO. The conference was well worth the long drive to Windsor and I am grateful for the opportunity to attend this very informative event. AMO began for me at 2pm on the 14th with the Municipal Asset Management Session where it was emphasized that an AMP has no value if it doesn`t guide the Capital Budgeting process. A Gas Tax info session came first on the agenda. This guaranteed long term funding source is depended upon by all municipalities and the discussion revolved around various approved uses for the funding. The remainder of the session stressed the importance of completing comprehensive asset management plans that treat the various components holistically rather than in silos. They spoke of using an “age based” formula vs. a “condition based” one and when each was more appropriate. Service Delivery Reviews with community engagement were strongly recommended. As Councillors we were advised that the question we should be asking our treasurers is: How many assets from an accounting perspective do we have that have no remaining value? I learned two important things here: That Meaford is in a very good position with asset management and two that as councillors we should support the purchasing of any software that could make this process easier or less time consuming for our staff. The evening reception was very nice, held at the St. Clair Centre for the Arts. Monday began with an address from Premier Kathleen Wynne, I`ve included a couple of media clips that cover her speech well. Wynne says a number of programs are in place to help people deal with rising hydro prices, but she’s "still hearing that's not enough." She also said the province will allow municipalities to apply for funding for wastewater infrastructure and public transit. The Association of Municipalities of Ontario's Annual Conference, or AMO as it is known, kicked off in Windsor on Monday. The conference began with Premier Kathleen Wynne announcing infrastructure money, and the launch of AMO's what’s Next Ontario – a public dialogue on the future of municipal fiscal sustainability. Premier Wynne says the Ontario Government will begin receiving municipal funding applications in September for the federal government's Clean Water and Wastewater and the federal Public Transit Infrastructure Funds. Municipal governments will be able to use the money towards the municipal share of project costs. Wynne also noted that the Government was working to ensure that Move Ontario Forward funding would be expanded to help municipalities make use of funding where required. AMO staff delivered a special presentation and launched What's Next Ontario. "Municipal governments deliver most of the services most people rely on, day-to-day," said Gary McNamara, AMO President. "Municipal costs are growing to the tune of about $1 billion every year just to deliver the same programs and services. We need to come together and determine what can be done to address shared challenges and make sure our communities can thrive over the long term." AMO is a non-profit organization representing almost all of Ontario's 444 municipal governments. AMO supports and enhances strong and effective municipal government in Ontario and promotes the value of municipal government as a vital and essential component of Ontario and Canada's political system. CLIMATE CHANGE AND THE BUILT ENVIRONMENT: OPPORTUNITIES FOR LEADERSHIP AND INNOVATION I`ve attached a presentation from Michael McSweeney, President and CEO of the Cement Association of Canada which I found very interesting discussing the effects of Climate Change and the Built Environment. One of his major points was his recommendation for municipalities to switch over to Contempra cement because it emits 10% less greenhouse gasses than normal cement, Contempra cement comes at no extra cost.