Township of Centre Wellington Committee of the Whole Agenda (Budget) February 6, 2019 (9:00 am-6:30 pm) February 7, 2019 (9:00 am-4:00 pm) February 13, 2019 (9:00 am-4:00 pm) February 14, 2019 (9:00 am-4:00 pm, if required) Council Chamber, 1 MacDonald Square, Elora Page
1. CALL TO ORDER
2. DISCLOSURE OF PECUNIARY INTEREST UNDER THE MUNICIPAL CONFLICT OF INTEREST ACT
3. INTRODUCTION
3.1 Opening Remarks - Mayor Linton
3.2 Introduction - Chief Administrative Officer
4. CONFIRMATION OF AGENDA
4.1 Recommendation: THAT the Council of the Township of Centre Wellington confirm the agenda for the meeting held February 6, 2019 through February 13, 2019 and February 14, 2019, if necessary.
5. BUDGET PRESENTATION - TREASURER & DEPUTY TREASURER
(Presentation distributed at the meeting)
6. TAX SUPPORTED OPERATING BUDGET REVIEW
Tax Supported Operating Budget
6.1 • Administration • Corporate Services • Infrastructure Services • Community Services • Planning & Development Services • Other Services
Page 1 of 41 7. DELEGATIONS - FEBRUARY 6, 2019 @ 5:00 P.M.
7.1 • Adrienne McBride, Executive Director and Lisa Veit, Associate Director, Guelph Humane Society • Matthew Ladner and Sheila Koop, Elora Centre for the Arts • Cleon Horst, re Closed bridges 32-P and 33-P Noah Road (former Pilkington) • Emanuel Gingrich, Closed bridge 5-P Weisenbert Road (former Pilkington) • David Bearinger, re Closed bridge 24-P Third Line West (former Pilkington) • Fred Gordon, Administrator, Elora & Fergus BIAs • Donna Madore re First Line • Curt McQueen, Centre Wellington Sports Alliance
8. REVIEW & DISCUSSION OF BUDGET DELEGATIONS - FEBRUARY 7TH AT 9:00 AM
9. WATER AND SANITARY SEWER SUPPORTED OPERATING BUDGET REVIEW
Waterworks / Sanitary Sewer Supported Operating Budget
10. STAFFING STRATEGY REVIEW FOR 2019
2019 Staffing Strategy
11. CAPITAL BUDGET PRESENTATIONS - MANAGING DIRECTORS (STORY MAPS)
11.1 Story Maps • Community Services - Managing Director of Community Services • Infrastructure Services - Managing Director of Infrastructure Services • Other - Managing Director of Corporate Services
11.2 Capital Budget Overview
12. BRIDGES & MAJOR CULVERTS 10 YEAR FORECAST
Bridges & Major Culverts 10 Year Forecast Summary
13. VEHICLE & EQUIPMENT REPLACEMENT FORECASTS
Vehicle and Equipment Replacement Forecast Summary
14. 10-YEAR CAPITAL FORECAST
10-Year Capital Forecast
Page 2 of 41
15. SUMMARY OF RECOMMENDATIONS FROM DAYS 1 & 2 - FEBRUARY 7TH AT 3:30 PM
16. CLOSED SESSION - FEBRUARY 13, 2019 @ 9:00 A.M.
16.1 THAT the Council of the Township of Centre Wellington convene in Closed Session in accordance with Section 239 (e) and (f), of the Municipal Act, 2001, as amended, to consider a matter under litigation or potential litigation, including matters before administrative tribunals, affecting the municipality and to consider advice that is subject to solicitor-client privilege, including communications necessary for that purpose
17. RECONCILIATION OF BUDGET CHANGES
18. STAFFING STRATEGY REVIEW FOR 2020 AND 2021
Staffing Strategy 2020 and 2021
19. 3-YEAR OPERATING FORECAST
3-Year Operating Forecast
20. RESERVE ACTIVITY FOR 2019
Reserve/Reserve Fund Activity 2019
21. DEBT ANALYSIS: CURRENT AND PROJECTED
Analysis of Current and Projected Debt
22. CONSIDERATION OF REPORTS
22.1 2019 Township Community Impact Grant Approvals 5 - 16 CS2019-01 - Pdf Recommendation: THAT the Council of the Township of Centre Wellington approves the grant allocations as outlined in Appendix A to Report CS2019-01, dated February 6, 2019;
AND THAT the Council of the Township of Centre Wellington include Big Brothers/Big Sisters in the Specific Annual Grants category in 2020 at an amount of $5,000.
22.2 Service Financing Agreement for Off-Site Infrastructure, Phase 3 of 17 - 31 Granwood Subdivision in Elora
Page 3 of 41 IS2019-09 - Pdf Recommendation: THAT the Council of the Township of Centre Wellington give three readings to a bylaw to authorize the Mayor and Clerk to execute a Service Financing Agreement between the Township and Wrighthaven Homes Limited for off- site infrastructure related to Phase 3 of the Granwood Subdivision in Elora.
22.3 Street Light Taxation 32 - 35 COR2019-06 - Pdf Recommendation: THAT the Council of the Township of Centre Wellington approve the elimination of street light levies, and the incorporation of annual street lighting costs into the general taxation levy for 2019 and future years when developing taxation rates.
22.4 Ontario Regulation 284/09 - 2019 Budget 36 - 39 COR2019-07 - Pdf Recommendation: THAT the Council of the Township of Centre Wellington adopt Report No. COR2019-07 regarding additional financial disclosure requirements for the 2019 budget year pursuant to Ontario Regulation 284/09.
22.5 2019 Draft Budget 40 - 41 COR2019-08 - Pdf Recommendation: THAT the Council of the Township of Centre Wellington adopt the 2019 budget.
23. ADJOURN
Page 4 of 41 Report to Committee of the Whole
To: Mayor Linton and Members of Council Report: CS2019-01 Prepared By: Dorothy Smith, Manager of Community Date: 06 Feb 2019 Development, Festivals, Culture and Tourism
RE: 2019 Township Community Impact Grant Approvals
Recommendation: THAT grant the approves Wellington of Centre the of Council the Township allocations as outlined in Appendix A to Report CS2019-01, dated February 6, 2019.
And THAT the Council of the Township of Centre Wellington include Big Brothers/Big Sisters in the Specific Annual Grants category in 2020 at an amount of $5,000.
Summary: The 2019 Township Community Impact Grant applications have been reviewed by the Community recommendations are Their (CSAC). Committee Advisory Services contained in this report.
Report: Community Impact Grants: This year a total of 13 grant applications were received totaling $43,850. The number of requests are down slightly from last year. During the 2018 budget process, 17 applications were received for grants totaling $46,726.
2019the summarizing spreadsheet a is (Appendix report this to Attached A) Township Grant requests as well as the recommendations of the Community Services Advisory Committee. As in prior years, the Specific Annual Grant recipients are approved by Council annually.
Appendix B is a report prepared by the Community Services Advisory Committee summarizing their recommendations to the Committee of the Whole concerning the 2019 Township Community Impact Grants.
The 2019 Draft Budget does not propose an increase to the grant funding available in 2019. Under the Annual Specific Grant category however, Ponsonby Recreation
Page 5 of 41 Club has requested an additional $500 to their request. This has been factored into the total funding available for 2019.
It is further recommended that the Community Impact Grant awarded annually to Big Brothers/Big Sisters be included in the Specific Annual Grants category in 2020, due to the frequency of the award and the use of funds.
Historically annual funding has been awarded to this organization for 5 years. This change does not impact the total amount of funding allocated by Council but will allow the Big Brothers/Big Sisters organization to receive their funding annually without having to go through the grant application process to apply.
Appendix C is a copy of the Grant Policy, including changes approved by Committee of the Whole on November 20, 2017, that outlines the qualifications, process and conditions for funding.
Appendix D is a summary of the Township grant approvals since 2014.
Corporate Strategic Plan: Pride of Place - Acting responsibly, the Township will support community initiatives that foster pride in our community and enhance its amenities. Good Government - The Township make will - well operatedecisions, informed efficiently, get results, communicate openly and engage the public in important decisions.
Financial Implications: The Township’s Grant Program is considered annually during budget deliberations and is included in the tax supported operating budget.
Consultation: The preparation of this report was done in consultation with the Managing Director of the Community Services and the Community Services Advisory Committee.
Attachments: ● Appendix A - 2019 Grant Approvals ● Appendix B - CSAC Community Impact Grant Summary ● Appendix C - Grant Application Policy 2018 ● Appendix D Township Grant Approvals 2014 - 2018
Approved By: Pat Newson, Managing Director of Community Services, Managing Director of Community Services
Page 6 of 41 Andy Goldie, Chief Administrative Officer
Page 7 of 41 Appendix A Township of Centre Wellington Township Grant Approvals 2019 Budget
2019 CSAC 2019 Requests: Request Recommendations APPROVED
Specific Annual Grant: Centre Wellington Food Bank 5,000 Elora and Salem Horticultural Society 1,950 Elora Cataract Trailway Association 5,000 Elora Lions Club (Elora Santa Claus Parade) 1,600 Fergus and District Horticultural Society 1,850 Fergus Lions Club (Fergus Santa Claus Parade) 1,700 Ponsonby Recreation Club 2,500 Royal Canadian Legion Wreaths 450 Wellington County Farm and Home Safety Association 500 Total Committed 20,550 0 0
Community Impact Grant Big Brothers Big Sisters of Centre Wellington 5,000 4,550 Bungalow 55 3,000 2,560 Children's Foundation of Guelph and Wellington 5,000 4,450 Community Resource Centre 5,000 4,125 CW Shuffle Board Club 1,000 195 Elora Arts Council 3,250 2,814 Elora Centre for the Arts 5,000 4,400 Elora Environment Centre (NeighbourWoods on the Grand) 1,600 1,134 Elora Festival 4,500 2,727 Elora Festival Singers 3,000 2,345 Elora Skating Club 1,500 0 Sensational Elora 5,000 4,400 Spring Rain 1,000 750 Total 43,850 34,450 0
Provision for Emergency & Disaster Relief Funding Available 0 0 Total 0 0 0
64,400 34,450 0
BUDGET 55,000
Page 8 of 41 Appendix B
CSAC Community Impact Grant Summary for Committee of the Whole 2019 2018 2018 2019 2019 Tab Applicant Request Approved Request Funds to be used for: Recommended Comments
#1 Community Resource Centre 0 0 5,000 TedX Workshop 4,125
#2 Elora Enviroment Centre 1,676 1,100 1,600 Tour the trees expansion 1,134
#3 The Elora Festival 4,500 3,825 4,500 Kids Camp 2,727
#4 The Elora Singers 3,000 1,500 3,000 Circle of Song, Dementia focused outreach program 2,345
#5 Big Brothers/Big Sisters 5,000 5,000 5,000 One to One Program 4,550
#6 C.W. Shuffleboard 1,000 250 1,000 Betterment and Growth of Club 195 Received lowest score of all applicants.
#7 Sensational Elora 5,000 4,000 5,000 Pumpkin Day and Monster March parade 4,400
#8 Children's Foundation 0 0 5,000 Student Nutrition Program in schools 4,450 Food expenses in 11 schools in C.W. Page 9 of 41 2018 2018 2019 2019 Tab Applicant Request Approved Request Funds to be used for: Recommended Comments
#9 Elora Centre for the Arts 5,000 4,000 5,000 Black Sheep Festival in July 4,400
#10 Spring Rain 2,000 1,000 1,000 Irish Festival 750
#11 Bungalow 55 3,000 2,500 3,000 Community Lunch Program 2,560 Funding is contingent on lunch program continuing in 2019.
#12 Elora Arts Council 4,300 3,000 3,250 Plein Air - Fergus Youth Plein Air Juried Art Show,etc 2,814
#13 Elora Skating Club 0 0 1,500 Year end ice show 0 Ineligible for funding, already receive subsidy for ice rental.
Total Requests for 2019 $ 43,850 Budget Allocation $ 34,450 Total Recommendations $ 34,450 Page 10 of 41 Appendix C Township of Centre Wellington Grant Application Policy
The purpose of this policy is for the Township of Centre Wellington to provide financial assistance to not-for-profit organizations by means of a grant to enhance the overall wellbeing of the community.
1.0 APPLICANT QUALIFICATION
Organizations applying for funding must meet the following qualifications:
1.1 Qualifications For Funding
1.1.1 The organization must be operating as a not-for-profit organization.
1.1.2 The organization must be comprised of an independent volunteer board of directors and must meet regularly and maintain appropriate minutes and records of proceedings.
1.1.3 Be based in the Township of Centre Wellington, with at least a majority of members being Township residents. Membership and programs must be open to all Township citizens, and services, programs and activities must be of benefit primarily to Township citizens.
1.1.4 The organization’s programs or services must serve clearly identified community needs not already adequately addressed by another organization, be it government, corporate or another not-for-profit organization.
1.1.5 The applicant’s organization must be organized for at least one year.
1.1.6 The organization must provide evidence that the community has shown a commitment to their programs through participation in the organization or attendance at functions sponsored by the organization.
1.1.7 The organization should have demonstrated support from some other source than public funds. Other sources of income should include substantial financial support from audiences through ticket sponsorships or membership sales, where the functions of the organization are such as to serve audiences.
1.1.8 Financial responsibility should be demonstrated through the preparation and submission of operating budgets and complete financial statements. Complete financial statements include both a balance sheet and income statement, prepared by a licensed accountant operating independently of the applicant, for organizations with annual gross revenues in excess of $50,000. The Township recognizes that financial statement preparation costs can be prohibitive to smaller organizations, and therefore will accept a current, internally prepared, balance sheet and income statement for entities with annual gross revenues less than $50,000.
Page 11 of 41 1.1.9 The organization is not in arrears to the Township of Centre Wellington.
1.2 Ineligible For Funding
1.2.1 Organizations which are profit-oriented.
1.2.2 Individuals.
1.2.3 Marketing, travel or accommodation, uniforms, personal equipment, banquets, trophies or entertainment.
1.2.4 Rent (excluding Township facilities), utilities or debt repayment (i.e. mortgages).
1.2.5 Attendance at conferences, workshops or seminars.
1.2.6 Request for contributions to fund prior year deficits incurred by the organization.
1.2.7 Organizations who have failed to provide satisfactory reports, including financial statements, as to the success of the previous year and specifically with respect to the allocation of grant funds.
1.2.8 Requests for grants to an individual, or to an individual group that is controlled by a parent organization (in this case the parent organization should apply for the grant).
1.2.9 Organizations that receive other subsidies from the Township.
1.2.10 Organizations operating as service clubs, except under the Specific Annual Grants category.
1.2.11 Capital Projects
1.3 Council may grant special consideration to entities that do not meet all the above criteria, but are unique in nature and fulfill a specific need in the community.
2.0 GRANT CATEGORIES AND FUNDING ALLOCATION
2.1 A separate annual budget (approved by Council) will be allocated to each grant category, and will be included in the Township’s annual operating budget.
2.2 Consideration of grant applications will be made under the following categories:
A. Community Impact Grant
Objective - The intent of the program is to provide financial assistance to enhance the quality of life for the residents of the Township of Centre Wellington by fostering and strengthening special events, the arts and culture, supporting artistic excellence and stimulating wider community appreciation and participation in social and/or environmental activities.
Page 12 of 41
B. Specific Annual Grants (Township budget allocation $20,050)
Objective - The intent of the program is to provide financial assistance to enhance the quality of life in the Township of Centre Wellington by fostering, strengthening and stimulating wider community appreciation and participation in the community.
The following organizations have been approved by Council for annual funding without application:
Grant Application Exempt Organizations Amount Fergus and District Horticultural Society $1,850 Elora and Salem Horticultural Society 1,950 Elora Lions Club (Elora Santa Claus Parade) 1,600 Elora Cataract Trailway Association 5,000 Fergus Lions Club (Fergus Santa Claus Parade) 1,700 Royal Canadian Legion Wreaths 450 Wellington County Farm and Home Safety Association 500 Ponsonby Recreation Club 2,000 Centre Wellington Food Bank 5,000
Total $20,050
In order to be eligible for funding, a letter must be received by the Township from the exempt organization. The letter must identify the need for the grant and the general intent of use of the funds. The Township must receive the letter annually, prior to July 31st, before any grant funds are to be considered by Council.
If an exempt organization wants to submit a request for increased funding, the organization must identify the need and the amount of increase within the required letter noted above.
Council will review the Grant Application Exempt Organizations listed above, annually in September, as part of the preliminary annual budget process. Any changes (additions or deletions) to the section will be communicated to the affected organizations in writing prior to the advertisement described in section 4.1.
2.3 Grant funds available to an organization in a budget year are limited to a maximum of $5,000. This maximum includes requests for subsidized Township parks and recreation facility rental under section 3.1.
3.0 REQUESTS FOR SUBSIDIZED TOWNSHIP PARKS AND RECREATION FACILITY RENTAL
3.1 Organizations requesting a reduction in the Township’s fees as per the approved Fees and Charges Schedule for the purpose of Parks and Recreation facility rental/service are required to submit a written request directly to Council.
Page 13 of 41 4.0 GRANT APPLICATION PROCESS
4.1 In the fall of each year, the Finance Department will advertise (in local papers) all relevant information relating to the upcoming grant application process. The advertisement will indicate where applications can be picked up, and when they are due.
4.2 Applications must be delivered to the Parks and Recreation Department by the date and time outlined in the advertisement discussed in section 4.1.
4.3 All grant applications (excluding Grant Application Exempt Organizations) will be forwarded to the Community Services Advisory Committee for review. This committee will prepare a report outlining its funding recommendations and a summary of funding justification for each application to the Committee of the Whole. The total allocation recommended by the committee will be within the budget approved by Council for Community Impact Grants under Section 2.2A.
4.4 The Committee of the Whole will review the Community Services Advisory Committee report during regularly scheduled budget meetings.
4.5 Applications falling under section 1.3 will go directly to Council for review and consideration.
4.6 The Community Services Advisory Committee and the Budget Committee will review the applications based on the applicant qualifications listed in section 1.0, and the following measures:
4.6.1 Professional standards 4.6.2 Fiscal and overall accountability of the applicant 4.6.3 Administrative accountability 4.6.4 Economic impact 4.6.5 Merit and achievement 4.6.6 Community service and participation 4.6.7 Responsiveness to existing community need 4.6.8 Degree of accessibility
4.7 The Community Services Advisory Committee and/or Council reserves the right to request any applicant to participate in an interview in order to further clarify information within their application.
4.8 The grant allocation decisions made by the Committee of the Whole will be included in the budget approval recommendation that is forwarded to Council. Upon Council approval, successful grant applicants will be notified in writing. Grant cheques will be issued in a timely manner.
5.0 CONDITIONS OF FUNDING
5.1 Grant recipients must acknowledge the support of the Township of Centre Wellington in all printed materials.
Page 14 of 41 5.2 Grant recipients must provide a written statement of use of funds within two months of the event/program/service. Organizations will not be considered for future grant funding until all required reports are received by the Township of Centre Wellington’s Parks and Recreation Department.
5.3 Grant Application Exempt Organizations awarded Specific Annual Grants under section 2.2B are exempt from the requirements of section 5.2.
6.0 REQUESTS FOR EMERGENCY & DISASTER RELIEF FUNDING
6.1 Consideration of grants under this section must fall under one of the following categories:
6.1.1 Emergency Funding – Funding for organizations that are experiencing extensive financial hardship as a result of an unforeseen short-term increase in expenditures or decrease in revenues.
6.1.2 Disaster Relief Funding – Funding for organizations or communities whose property and possessions have been extensively damaged in an unexpected natural disaster. Natural disasters include, but are not restricted to floods, tornados, fires, and storms.
6.2 Applications for funding under this section must come in the form of a report or letter. The report or letter must outline the extent of the emergency/disaster, the estimated financial impact, and the requested amount of funding. This report or letter may come from one of the following sources:
6.2.1 The organization or community requesting the funds. 6.2.2 A staff or Council member of the Township of Centre Wellington. 6.2.3 A third party (such as a resident of Centre Wellington).
6.3 Applications for funding under this section may be forwarded to the Township of Centre Wellington at any time throughout the year.
6.4 The report or letter must be forwarded to the Financial Services Department of the Township of Centre Wellington, 1 MacDonald Square, Elora, Ontario, N0B 1S0. After the report or letter has been examined, the Financial Services Department will issue a report to the Committee of the Whole. This report will include a copy of the original report or letter received under section 6.2 of this policy as well as a recommendation (including possible funding sources, if applicable). The Financial Services Department report will be approved by the Chief Administrative Officer of the Township before it is forwarded to the Committee of the Whole.
6.5 The Committee of the Whole will consider the Financial Services Department report and make a recommendation to Council. Upon Council approval, funding will be issued by the Financial Services Department in a timely manner.
6.6 Consideration by the Committee of the Whole and Council will be based on the criteria described in section 4.6 of this policy.
Page 15 of 41 Appendix D Township of Centre Wellington Township Grant Approvals 2014 - 2018 Budgets
2014 2015 2016 2017 2018 APPROVED APPROVED APPROVED APPROVED APPROVED
Specific Annual: Fergus and District Horticultural Society 1,650 1,650 1,650 1,850 1,850 Elora and Salem Horticultural Society 1,950 1,950 1,950 1,950 1,950 Elora Optimist Club/Elora Lions Club (Elora Santa Claus Parade) 1,600 1,600 1,600 1,600 1,600 Elora Cataract Trailway Association 5,000 5,000 5,000 5,000 5,000 Fergus Lions Club (Fergus Santa Claus Parade) 1,700 1,700 1,700 1,700 1,700 Royal Canadian Legion Wreaths 450 450 450 450 450 Wellington County Farm and Home Safety Association 500 500 500 500 500 Senior Summer Games 750 - - - - Ponsonby Recreation Club 1,500 1,500 1,750 2,000 2,000 Centre Wellington Food Bank 5,000 5,000 5,000 5,000 5,000
Total Committed 20,100 19,350 19,600 20,050 20,050
Approved Applicants: Big Brothers Big Sisters of Centre Wellington - 4,000 4,000 4,000 5,000 Bungalow 55 - - 2,000 3,400 2,500 Canadian National Fly Fishing Championship - - - - 1,500 Centre Wellington Shuffleboard Club - - - 500 250 Eglinton and Caledon Hunt Club 1,000 - - - - Elora Arts Council 2,150 4,000 5,000 4,150 3,000 Elora Centre For The Arts 5,000 5,000 - 4,000 4,000 Elora Community Theatre 270 - - - - Elora Curling Club 3,900 - - - - Elora Environment Centre (NeighbourWoods on the Grand) 1,000 1,200 1,500 1,500 1,100 Elora Festival - - - 3,900 3,825 Elora Festival and Singers 4,500 4,050 4,750 - - Elora Festival Singers - - - 1,000 1,500 Elora Writers' Festival - - - - 750 Fergus Pipe Band 1,125 - - - 700 Fergus Scottish Festival and Highland Games 3,000 3,000 3,000 2,500 2,825 Grand Celtic Pipe Band 1,000 1,000 1,000 500 500 Highlands YFC - CW Satellite "The Door" - 1,000 - 2,000 1,000 Sensational Elora 2,400 5,000 5,000 3,500 4,000 Spring Rain Weekend - - 1,000 1,000 1,000 The Grand Quilt Guild - 1,500 - - 1,500 Wellington Centre for Sustainable Agriculture - - 2,480 - -
Total Approved Applicants 25,345 29,750 29,730 31,950 34,950
Provision for Disaster Relief & Other Projects Unspent 8,688 6,555 2,900 - -
Total Approved $ 54,133 $ 55,655 $ 52,230 $ 52,000 $ 55,000
Page 16 of 41 Report to Committee of the Whole
To: Mayor Linton and Members of Council Report: IS2019-09 Prepared By: Colin Baker, Managing Director of Date: 06 Feb 2019 Infrastructure Services
RE: Service Financing Agreement for Off-Site Infrastructure, Phase 3 of Granwood Subdivision in Elora
Recommendation: THAT the Council of the Township of Centre Wellington give three readings to a bylaw to authorize the Mayor and Clerk to execute a Service Financing Agreement between the Township and Wrighthaven Homes Limited for off-site infrastructure related to Phase 3 of the Granwood Subdivision in Elora.
Summary: The Township has completed a Service Financing Agreement with Wrighthaven Homes Limited related to off-site infrastructure related to Phase 3 of the Granwood subdivision in Elora.
Report: In 2018, the owner of the Granwood (Phase 3) Subdivision, Wrighthaven Homes Limited, approached the Township about servicing for third (and final) phase of the Granwood Gate Subdivision. The subdivision is located in the south end of Elora and includes the future extensions of York Street and Halls Drive as well as the extension of Waterloo Street along the west boundary of the subdivision.
The first two phases of the Granwood subdivision were developed by Edgehill Properties approximately 20 years ago. An impediment to servicing and development of Phase 3 was the cost of required services external to the subdivision, including the construction of a new trunk storm sewer from the subdivision to a new outlet at the Grand River. The County and Township constructed a section of the new trunk storm sewer from the Grand River at Metcalfe Street to the intersection of McNab and High Streets as part of the Metcalfe/McNab Street Reconstruction project in 2010. As part of the projects included in the off-site infrastructure for Granwood Phase 3, a new trunk storm sewer will be constructed from the McNab Street and High Street intersection to the entrance of the new subdivision on York Street at Waterloo Street.
Page 17 of 41 Improvements to York Street, High Street and the intersection of Wellington Road 7 at York Street and related water infrastructure are identified in the Township's Development Charges Bylaw. Along with the trunk storm sewer, the Township will be including sidewalks, a multi-use trail, curb/gutter, storm sewers, on-street parking and traffic calming in the new street design. York Street is a Township collector road and will experience an increase in traffic volume once York Street will be completed through the Granwood subdivision. With the proposed commercial node on the west side of Wellington Road 7 at York Street and linkage to the Trestle Bridge trail at the southern end of Waterloo Street, the road design for York Street and Waterloo Street includes a sidewalk on one side of the road and a multi-use trail on the other side of the road. Street trees will also be planted within the boulevards where appropriate. The location of the off-site infrastructure improvements are presented in Attachment #1.
On December 13, 2018, the Township hosted a drop-in format information session for the residents and businesses in the vicinity of the proposed York Street and High Street road improvements. The improvements to the roads, drainage, and linear infrastructure as presented were generally well received by the residents. Approximately 20 residents were able to provide their feedback and convey any concerns related to the proposed project to the project team for consideration.
Based on discussions with Wrighthaven Homes, Township staff are pleased to report that the terms and conditions of a Service Financing Agreement for the construction the off-site infrastructure for Phase 3 of the Granwood Subdivision has been finalized. From an asset management perspective, the Township welcomes the reconstruction of York and High Streets as both streets have very poor asphalt conditions and will likely be ranked as a high priority project in the Township's next Asset Management Plan update. The construction of the off-site infrastructure will allow Phase 3 grading and servicing to commence in the near future, subject to the issuance of relevant permits and Council-approval of a subdivision agreement.
The off-site infrastructure works include the following:
• Sidewalks and multi-use trails on York Street (Victoria Street to Waterloo Street) and Waterloo Street (Nichol Street to Halls Drive extension); • Trunk storm sewer from the boundary of the subdivision at York/Waterloo Street intersection to High/McNab Street intersection; • Sidewalk on the east side of High Street (York Street to McNab Street); • Southbound left turn lane on Wellington Road 7 at York Street; and • New watermain on Waterloo, York and High Streets and sanitary sewer on Waterloo and High Streets.
The total project cost for the off-site infrastructure is estimated to be $3,635,000. This amount includes $1,480,000 of Developer costs directly attributable to the subdivision, $1,136,000 of non-growth related Township cost, and $1,019,000 of growth-related costs. The Developer cost and growth-related cost of $2,499,000 will be front-ended by the Developer upon execution of the Service Financing Agreement. The Township's
Page 18 of 41 cost of $1,019,000 includes non-growth related aspects of improvements to the roads and local drainage, watermain, and sanitary sewers. The non-growth costs breakdown includes $715,000 for roads and local drainage, $306,000 for watermains, and areamounts funding and services $115,000 The sewers. sanitary for required presented in Schedule 'B' of the Service Financing Agreement in Attachment #2. The Township's non-growth related costs are reflected in the draft 2019 Capital Budget.
The non-growth component of the off-site infrastructure are not eligible for development charge funding and it is generally the municipality that is expected to fund the non- growth costs. It can be difficult to anticipate when new developments will proceed, so it is the Township's practice to identify non-growth related capital costs through the Service Financing Agreement and include the funding, ideally through the Township's capital budget process, or through a separate report to Council. In the past, the Township has collected voluntary contributions from Developers to offset some of the impact of the non-growth costs to the Township's capital budget. For example, Sorbara/FBH 36.98 G.P. voluntary contributed 50% of the non-growth tax supported cost of $639,800 for the Tom Street and St. Andrew Street off-site infrastructure improvements related to the Summerfields Phase 2 subdivision. At this point, Township staff have shown the non-growth tax support and water/wastewater rate supported costs as 100% Township funded in the draft 2019 Capital Budget.
Once the Developer's contributions are in-place and the Township's 2019 Capital Budget is approved, the Township will finalize the design and issue a tender for the construction of the off-site infrastructure. The Developer front ended funds will be adjusted based on the tendered price of construction and the final actual cost of construction. The Environmental Compliance Approval application for the off-site storm and sanitary sewers was submitted to the Ministry of the Environment, Conservation, and Park (MECP) in December 2018. Construction is expected to begin in May 2019 and be substantially completed by the end of the 2019 construction season.
As previously mentioned, the Township will be collaborating with Wrighthaven Homes to prepare a Subdivision Agreement to allow Phase 3 of Granwood Gate to proceed. The Subdivision Agreement will be presented to Council at a future date.
Corporate Strategic Plan: Reliable Infrastructure - The Township will manage and upgrade the community's infrastructure/reconstruction and will be based on the objectively-derived priorities in the Township's asset management plan. Healthy Growth - The Township will plan now for its inevitable growth, so that we retain a vibrant and accessible community and our high quality of life in the future.
Financial Implications: The Developer will be providing front end financing of the development and growth- related portion of the off-site works. The draft 2019 Capital Budget currently shows the non-growth portion of off-site infrastructure costs as 100% funded by the Township.
Page 19 of 41 Consultation: This report was prepared in consultation with the Developer, Wrighthaven Homes, Township's legal counsel, SV Law, Triton Engineering Services Ltd., Managing Director of Corporate Services/Treasurer, and Managing Director of Planning and Building.
Attachments: ● IS2019-09 ATT-1 Location Map - Granwood Phase 3 External Works ● IS2019-09 ATT-2 Wrighthaven Homes Granwood Phase 3 Draft Service Finance Agreement Feb 1 2019-fin
Approved By: Andy Goldie, Chief Administrative Officer Dan Wilson, Managing Director of Corporate Services / Treasurer
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Area of External Works Granwood Gate Phase 3 External Works Granwood Gate Phase 3 Limits
Sources: Data provided herein is derived from sources with varying levels of
Page 21 of 41 Parcel Fabric: Wellington County, 2018. Teranet, 2002. accuracy and currency. This is not a survey product. The Township 0 60 120 m Orthophotography: MNR, 2015. of Centre Wellington disclaims all responsibility for the accuracy or O May include material ©2018 The Queen's Printer for Ontario, completeness of information contained herein. The Township of County of Wellington and the Grand River Conservation Authority. Centre Wellington assumes no responsibility for errors arising from Author: aflanagan 1:4,000 use of these mapping products. All rights reserved. May not be reproduced without permission. Date Saved: 2019-02-01 10:40:37 AM © The Township of Centre Wellington, County of Wellington.
SERVICE FINANCING AGREEMENT
THIS AGREEMENT made the day of February, 2019.
BETWEEN:
WRIGHTHAVEN HOMES LIMITED (hereinafter called the “Developer”)
PARTY OF THE FIRST PART
-and-
THE CORPORATION OF THE TOWNSHIP OF CENTRE WELLINGTON (hereinafter called the “Township”) PARTY OF THE SECOND PART
WHEREAS:
A. The Developer is the owner of certain lands described in Schedule “A” hereto;
B. The Developer is the developer of certain lands described in Schedule “A” hereto, and received approval of a draft plan of subdivision (the “Development”);
C. The Township’s Development Charge By-law No. 2018-40 (the “DC By-law”) applies to the Developer’s proposed subdivision and other development lands throughout the Township;
D. The development of the Developer’s subdivision requires (i) the construction, installation and provisions of certain works, facilities and services including works on High Street, Waterloo Street, York Street and Wellington Road 7, identified in Schedule “B” attached hereto (the “Required Services”), (ii) other local services as identified in the Subdivision Agreement between the parties of even date herewith, and (iii) the payment of development charges in accordance with applicable law.
E. The works, facilities and services described in Schedule “B” would not, except for the terms of this Agreement, be undertaken by the Township in the near future;
F. In considering the Developer’s request to secure the servicing of the development, the Township has requested that the Developer pay for the Required Services, as identified;
G. The Developer has requested that Council of the Township authorize this Service Financing Agreement to provide for all of the financing required for the construction of the works, facilities and services described in Schedule “B” in exchange for the Developer front ending certain costs outlined in Schedule “B”. The Developer shall receive reimbursement of the growth-related costs in accordance with this Service Financing Agreement.
NOW THEREFORE, in consideration of the matters agreed to herein and in consideration of One Dollar ($1.00) paid by each party to the other, the receipt and sufficiency of which is hereby acknowledged, the Developer and the Township agree as follows:
1. Definitions
In this Agreement:
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“Agreement” means this Agreement and all Schedules thereto and any documents incorporated herein by reference.
“Development Charge By-law” or “DC By-law” means the Township’s Development Charge By-law No. 2018-40 passed under the authority of the Development Charges Act, 1997, including any amendments or future updates.
“Development Charge” or “DC” means a charge for development as defined in the Development Charge By-law, as amended or its successor by-law.
“Lands” means the lands described in Schedule “A” attached hereto.
“Parties” means the Developer, the Owner and the Township, and “Party” means one of the parties.
“Required Services” means the services described in Schedule “B” attached which in part are service components included in the DC By-law and its background study and in part consist of local services outside the development which are required for the development.
“Township’s Costs” means the Township’s reasonable costs in preparing this Agreement, including without limitation, the costs of consultants and legal counsel relating thereto.
“Township’s Engineers” means the consulting engineering firm retained by the Township.
2. Application of Agreement
The Parties agree that this Agreement shall apply to the development of the entire Lands.
3. Required Services
The Parties agree that the Required Services identified in Schedule “B” hereto are required to service the Lands.
4. Financing of Required Services
a) The Developer shall:
(i) make a front ending payment equal to 100% of the Developer costs as described in Schedule “B”; and
(ii) make a front ending payment equal to 100% of the growth-related costs as described in Schedule “B”.
b) The Township shall:
(i) repay the Developer for the growth-related costs front ended as described in Schedule “B”, to be calculated by applicable service category, paid semi- annually based on the Township’s approved DC By-law and actual DCs paid by the Developer with respect to the Lands for each semi-annual period, until the growth-related costs have been repaid in full.
5. Funding to be provided by the Developer
5.1 Funding of Services
The Required Services are to be constructed at both the Developer’s and the Township’s cost as described in Schedule “B”. The cost of the Required Services to be funded by the Developer shall include the construction cost, all related taxes, all related engineering services, the Township’s Costs and, in the case of the Initial Funding Amount and the Adjusted Funding Amount described below, shall include a contingency allowance.
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5.2 Initial Funding Amount
The Developer shall provide the initial funding (the “Initial Funding Amount”) for applicable Required Services based on the Total Estimated Cost of such services as outlined in Schedule “B” including all applicable taxes, engineering fees, Township costs and contingency allowances. Upon the signing of this Agreement the Developer shall provide the Initial Funding Amount:
i. in cash; or,
ii. by delivery to the Township of an irrevocable standby letter of credit from a financial institution in a form approved by the Township (the Letter of Credit). Township policy requires that such Letters of Credit be issued by one of the financial institutions listed on and in the format set out on Schedule “C” attached hereto.
5.3 Funding of Tendered Price for Services
The Funding Amount shall be adjusted to be equal to the total project costs based on tendered prices for the Required Services which the Township proposes to accept and include applicable taxes, engineering fees, Township costs and contingency allowances (the “Adjusted Funding Amount”) prior to the Township awarding the applicable construction contracts. The Parties agree that an adjustment shall be made to the amount of the cash payment, or by amending the principal sum secured by the Letter of Credit, referred to in Article 5.2, as the case may be, to be equal to the amount that the Township proposes to accept, prior to the Township consenting to the award of contract(s) for the Required Services.
5.4 Funding for “As Constructed” Price for the Services
Following completion of the construction of the Required Services to the satisfaction of the Township and the determination of the “As Constructed” price of the Required Services by the Township’s Engineers (which shall include the actual construction cost, all related taxes, all related engineering services, and the Township’s Costs) the Parties shall further adjust the Adjusted Funding Amount to be equal to the final “As Constructed” price of the Required Services.
In the event that the “As Constructed” price is less than the amount of the Adjusted Funding Amount then the Township shall within sixty (60) days of the determination of the “As Constructed” price refund to the Developer the amount by which the Adjusted Funding Amount exceeds the “As Constructed” price of the Required Services.
In the event that the “As Constructed” price of the Required Services exceeds the Adjusted Funding Amount then the Developer shall forthwith within sixty (60) days of written demand from the Township pay the amount of the excess to the Township failing which the Township shall refuse to remove any holding provision in the zoning by-law affecting lots and blocks within the Developer’s subdivision until the Township has recovered the amount of such excess.
5.5 Developer’s authority with respect to Funding
If the funding provided to the Township by the Developer is paid in cash the Developer specifically and irrevocably authorizes the Township’s Treasurer to use and expend such cash to pay for the “As Constructed” cost of the Required Services; if the funding provided to the Township is in the form of an irrevocable standby Letter of Credit then the Developer hereby specifically and irrevocably authorizes the Township’s Treasurer to make draws against the Letter of Credit to pay for the construction and provision of the Required Services.
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6. Tendering of Required Services
The Township shall be responsible for tendering construction contracts and construction management for all Required Services. The Developer reserves the right to review the contract prices and unit pricing before construction contracts are awarded.
7. Effective Date of this Agreement
This Agreement shall become effective on the date of the execution of this Agreement by the Township, the Developer and the Owner (the “Effective Date”).
8. No Effect on Planning Act Deliberations or Decisions
The Developer and the Township acknowledge that the Township is obliged to duly consider applications under the Planning Act regarding the development of the Lands on the merits of such applications, to hear and consider any objections, comments or concerns with respect thereto, and to make appropriate determinations in the Municipal Council’s unfettered discretion on such applications in accordance with the provisions and procedures of the Planning Act, and without regard to this Agreement. The Developer further acknowledges and agrees that the Township is under no obligation by virtue of this Agreement, or otherwise, to grant any approvals whatsoever for any contemplated development or use of the Lands.
9. Estoppel
The Developer, the Township and the Owner shall be and are hereby estopped from asserting in any proceeding at any time and in any forum that the Township does not or did not have lawful authority to enter into this Agreement, or that any of the terms of this Agreement are not within the jurisdiction or capacity of the Township to enter into. The Developer and Owner each acknowledge that it has voluntarily entered into this Agreement.
10. Time of Essence
Time shall be of the essence in this Agreement.
11. Amendments Only in Writing
No modification, variation, amendment or termination by mutual consent of this Agreement, and no waiver of the performance of any of the responsibilities of the Parties shall be effective unless such action is taken in writing by instrument or document executed by the Parties, excepting that the foregoing shall not apply where an express provision of this Agreement permits such modification, variation, amendment or termination pursuant to any other means, and in such instance the said provision shall apply. All representations and understandings of the Parties with respect to the Lands and the subject matter of this Agreement are contained in this Agreement, and there are no other representations or understandings between the Parties. This Agreement supersedes any and all prior agreements and understandings between the Parties with respect to the subject matter of this Agreement.
12. Notices
(i) Except as otherwise specified herein, any notice hereunder shall be given in writing, by delivery in person, or by registered mail (return receipt requested) or by facsimile transmission, properly addressed to the Party to whom such notice is given, with postage or charges, if any, prepaid. A notice shall be deemed to have been given only when received by the Party to whom such notice is directed.
(ii) Notices shall be given at the following addresses, unless and until a Party gives written notice of a new address to the other Party:
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Developer: WrightHaven Homes Limited 11 Spencer Drive Elora, Ontario, N0B 1S0 Attention: S. Wright
Township: 1 MacDonald Square Elora, Ontario N0B 1S0 Attention: D. Wilson, Managing Director of Corporate Services/Treasurer
13. Schedules
Attached hereto and forming part of this Agreement are the following Schedules:
“A” Description of the Lands “B” Required Services and Funding Amounts “C” Details for Letter of Credit
14. Successors and Assigns
This Agreement shall enure to the benefit of and shall be binding upon the Parties and their respective successors and assigns, subject only to any limitations explicit in this Agreement.
15. Developer and Owner’s acceptance of Agreement
The Developer and/or the Owner shall not call into question, directly or indirectly, in any proceedings whatsoever in law or in equity or before any administrative tribunal the right of the Township to enter into this Agreement and to enforce each and every term of this Agreement and this Agreement may be pleaded as estoppel against the Developer and/or the Owner in any such proceedings.
16. Further Assurances
The Parties shall from time to time and at all times do such further acts and things, and execute all such further documents and instruments, as may be reasonably required to carry out and implement the true intent and meaning of this Agreement.
17. Execution in Counterparts
This agreement may be executed in counterparts, each of which so executed shall be deemed to be an original, and such counterparts together shall constitute but one and the same instrument.
18. Governing Law
This agreement and all other agreements, security and documents to be delivered in connection with this agreement shall be governed by and construed in accordance with the applicable laws of the Province of Ontario and of Canada, and the parties hereto irrevocably attorney to the jurisdiction of the courts of Ontario to resolve any dispute with respect to this Agreement that cannot be amicably resolved through negotiation.
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IN WITNESS WHEREOF the parties hereto have affixed their corporate seal under the hand of their proper officers or set their hand and seal.
WRIGHTHAVEN HOMES LIMITED. Per: ______Name: Title:
______Name: Title:
I/We have authority to bind the Corporation
THE CORPORATION OF THE TOWNSHIP OF CENTRE WELLINGTON Per:
______Mayor
______Clerk
We have authority to bind the Corporation
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SCHEDULE “A”
Legal description of Lands
PT RESERVE BOUNDED BY ARTHUR RD, ELGIN ST, SOUTH QUEEN ST, PL 181 BEING PT 6, 61R8747 EXCEPT PT 5, 61R8775; CENTRE WELLINGTON PIN: 71408-0536 (LT)
PT PARK LOTS 7 & 8 (AKA UNNUMBERED LOT), 9, SOUTH SIDE QUEEN STREET, PART LOT 4 SOUTHEAST SIDE OF MCNAB ST, RESERVES SOUTH OF ST. GEORGE ST., EAST OF WATERLOO ST. & NORTH OF SOUTH QUEEN ST, PART OF RESERVE BOUNDED BY ARTHUR RD, ELGIN ST, SOUTH QUEEN ST & ST. GEORGE; PART SOUTH QUEEN ST; PART GILKISON ST, PART UNNAMED ST (AKA GILKSON ST,), PART ELGIN ST, CLOSED BY MS18264 AND ROS617273; PART ST. GEORGE ST (NICHOL ST.), PART LOTS 1 TO 6 INCL., NORTHWEST SIDE OF ST. GEORGE ST,; PL 181 BEI NG PTS 2 TO 5, 61R8747 EXCEPTS PTS 2, 4 & 6, 61R8775; CENTRE WELLINGTON; S/T EASEMENT OVER PT 3, 61R8747 AS IN RO780817; S/T EASEMENT IN FAVOUR OF THE CORPORATION OF THE TOWNSHIP OF CENTRE WELLINGTON OVER PTS 3 & 7, 61R8775 AS IN WC11355. PIN: 71408-0541 (LT)
PT LTS 9 & 10, ALL OF LTS 11 TO 16, NW/S OF ST. GEORGE AND PT OF ST. GEORGE ST. (CLOSED BY BY-LAW 2149-89 NO. 617273), PL 181; BEING PT 1, 61R8747 EXCEPT PT 1, 61R8775; CENTRE WELLINGTON PIN: 71408-0538 (LT)
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SCHEDULE “B” REQUIRED SERVICES AND FUNDING AMOUNTS
ESTIMATED 100% 100% GROWTH DESCRIPTION - GRANWOOD PHASE III - ELORA COST DEVELOPER TOWNSHIP RELATED See Note 1 See Note 2 See Note 3
HIGH STREET (YORK STREET TO MCNAB STREET) Roads & Local Drainage (8.0m E/P to E/P) 510,000 255,000 255,000 Trunk Storm Sewer (975mm) 370,000 370,000 Watermain (150mm) 170,000 170,000 Sanitary Sewers (200mm) 80,000 80,000 SUB-TOTAL 1,130,000 370,000 505,000 255,000
WATERLOO STREET (NICHOL TO YORK) Roads & Drainage (8.5m E/P to E/P) 380,000 380,000 Watermain (150mm) 110,000 110,000 Sanitary (200mm) 70,000 70,000 SUB-TOTAL 560,000 560,000 - -
YORK STREET (WATERLOO STREET TO VICTORIA STREET) Roads & Local Drainage (8.5m E/P to E/P) 920,000 460,000 460,000 Trunk Storm Sewer (975mm) 550,000 550,000 Watermain (200mm) 340,000 136,000 204,000 Sanitary Sewers (Remedial Works) 35,000 35,000 SUB-TOTAL 1,845,000 550,000 631,000 664,000
WELLINGTON ROAD 7 AND YORK STREET TURNING LANE Roads & Local Drainage (8.5m E/P to E/P) 100,000 100,000 SUB-TOTAL 100,000 - - 100,000
TOTAL $ 3,635,000 $ 1,480,000 $ 1,136,000 $ 1,019,000 A B C Initial Developer Finance Amount (A + C) $ 2,499,000 Initial Township Finance Amount (B) $ 1,136,000 TOTAL $ 3,635,000
Breakdown of Growth Realted Costs by Service Roads $ 815,000 Water $ 204,000 Sanitary $ - TOTAL $ 1,019,000
Note 1 - Pursuant to this Agreement, the Developer shall finance this amount. Note 2 - Costs to be funded by the Township. Note 3 - Pursuant to this Agreement, the Developer shall initially finance this amount, then receive development charge credits as outlined Note 4 - Costs relating to Waterloo Street sanitary includes complete sanitary sewer replacement. Sewer is to be CCTV inspected to confirm requirement.
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SCHEDULE “C”
NOTE: Township policy requires that the Letter of Credit be issued by any one of the following financial institutions:
Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Toronto-Dominion Bank, or Meridian Credit Union
APPROVED FORM FOR LETTER OF CREDIT
Your Name & Address Date of Issue: Irrevocable Standby Letter of Credit
Reference No:
APPLICANT BENEFICIARY: TOWNSHIP OF CENTRE WELLINGTON
c/o 1 MacDonald Square ELORA, Ontario N0B 1S0
AMOUNT: MAXIMUM in Canadian Dollars:
We hereby authorize you to draw on (Financial Institution & Address) for Account of (Applicant), up to an aggregate amount of (amount) (CAD) of lawful money of Canada available by Draft(s) on demand.
Pursuant to the request of our customer, (applicant), we, (Financial Institution) hereby establish and give to you an irrevocable standby letter of credit (the “credit”) in your favour in the total amount of (amount) Canadian dollars pursuant to the agreement between the Township of Centre Wellington and (applicant) dated (date) with respect to the total cost of all development works and engineering costs [wording to be amended as necessary to identify purpose of the Letter of Credit i.e. as an assurance that required works will be completed]
This credit may be drawn on by you at any time and from time to time upon written demand for payment made upon us by you which demand we shall honour without enquiring whether you have a right as between yourself and our said customer to make such demand and without recognizing any claim of our said customer.
The amount of this credit shall be reduced from time to time as advised by notice in writing given to us from time to time by you.
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This credit will continue up to the (date), subject to the following condition:
It is a condition of this credit that it shall be deemed to be automatically extended without amendment for one year from the present or any future expiry date hereof, unless at least 30 days prior to such expiry date, we notify you in writing by registered mail, that we elect not to consider this credit to be renewable for an additional period. Upon receipt by you of such notice, you may draw hereunder by means of your signed written demand for payment.
Partial Drawings are permitted.
Drafts must be shown and negotiated not later than the (date) or automatically extended date.
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Page 31 of 41 Report to Committee of the Whole
To: Mayor Linton and Members of Council Report: COR2019-06 Prepared By: Dan Wilson, Managing Director of Date: 06 Feb 2019 Corporate Services / Treasurer
RE: Street Light Taxation
Recommendation: THAT the Council of the Township of Centre Wellington approve the elimination of street light levies, and the incorporation of annual street lighting costs into the general taxation levy for 2019 and future years when developing taxation rates.
Summary: The Township currently has the following levies that are assessed against properties annually: • General taxation levy • Dedicated capital levy • Rural GRCA levy • Fergus street light levy • Elora street light levy • Rural street light levy
The general taxation levy funds the Township's annual budget, including net operating expenses and various transfers to capital reserves.
The dedicated capital levy partially funds the Township's bridge and major culvert capital program, as approved through the budget process. OCIF provincial grant funding also contributes to this program.
The rural GRCA levy relates to GRCA costs owed by the Township annually. The rural GRCA not residents applicable to relating levy the of portion the recovers levy connected to Township water/sanitary services. Applicable residents connected to Township water/sanitary services pay their share of GRCA costs through water/sanitary rates.
The 3 street light levies are used to recover annual costs associated with street lights in Fergus, Elora, and rural areas, and includes annual operating/maintenance costs and a provision for the future replacement of these street lights.
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Township staff are proposing the elimination of the 3 street light levies, with annual street light costs being funded through the general capital levy starting in 2019.
Report: In 2018 and prior years, the street light levies have been maintained as a mechanism for recovering annual street light costs from property owners that are in close proximity to street lights. Any property within 200 meters of a street light is charged a street light levy. In addition, street light costs for Fergus, Elora, and rural areas have been kept separate so that levies and street light taxation rates can be calculated for each area.
Regarding streetlight levies and street light taxation, the following options are available to the Township:
Option 1 - Eliminate all street light levies. The costs associated with all street lights in Centre Wellington annually would be included in the Township's general taxation levy.
Option 2 - Create one Centre Wellington street light levy (by combining the 3 existing levies). Only include properties within 200 meters of a street light in the levy, but eliminate the differentiation between Fergus, Elora, and rural areas.
Option 3 - Current Practice: Maintain Fergus, Elora and rural street light levies. Only include properties within 200 meters of a street light in the levy.
Option 1 is Township staff's recommended approach. All street light levies would be eliminated and all lights would costs be associated included with in street the Township's general taxation levy. Under this approach, all properties in Centre Wellington would be contributing to the cost of providing street lights, rather than just properties within 200 meters of a street light. The justification for this would include the fact that all residents and business owners benefit from street lights, regardless of whether there is a street light in close proximity to their property, through visiting and travelling through Fergus/Elora downtowns and other areas within the Township that have street lights.
Option 2 involves converting the existing 3 street light levies into 1 Centre Wellington street light levy. This removes the differentiation between Fergus, Elora and rural levies. It also reduces the number of street light levies from 3 to 1. Properties within 200 meters of a street light levy would continue to incur a street light levy.
Option 3 maintains current practices of calculating 3 street light levies and taxation rates. This involves continuing to segregate street light costs into Fergus, Elora, and rural areas. Properties within 200 meters of a street light levy would continue to incur a street light levy.
Page 33 of 41 Through a review of various neighbouring municipalities' Financial Information Returns (FIRs), the following comparative information has been provided: • City of Guelph - no street light levies. • Town of Erin - no street light levies. • Town of Minto - one street lighting levy. • Township of Puslinch - street lighting levy for Barber's Beach only. • Township of Guelph/Eramosa - no street light levies. • Township of Mapleton - one street lighting levy. • Township of Wellington North - one street lighting levy. • Township of Woolwich - no street light levies.
In comparison to the comparators above, Centre Wellington is the only municipality that incorporates more than one street light levy. Minto, Mapleton, and Wellington North have one levy (similar to option 2), Puslinch has a levy for a small section of the municipality, and Guelph, Erin, Guelph/Eramosa, and Woolwich do not charge street light levies (similar to option 1).
Transitioning to option 1 allows the cost of street lights to be funded through all Township property owners. In addition, the process of calculating 3 street light levies is becoming more complex, given Township growth. Option 1 provides a more efficient and effective approach to street light cost recovery, given the relatively small amount that street light costs represent, in comparison to the general taxation levy.
Corporate Strategic Plan: This report is in line with the following Township Strategic Planning initiatives:
Reliable Infrastructure - The Township will manage and upgrade the community's infrastructure/reconstruction and will be based on the objectively-derived priorities in the Township's asset management plan.
Good Government - The Township - informed will make decisions, well operate efficiently, get results, communicate openly and engage the public in important decisions.
Financial Implications: Street light levies for the past 3 years, including the draft 2019 levies, are provided below:
Area 2016 2017 2018 2019 Draft Fergus $275,000 $245,000 $167,000 $172,500 Elora $118,000 $136,000 $111,000 $76,000 Rural $72,000 $93,000 $52,000 $46,000 Total $465,000 $474,000 $330,000 $294,500
Page 34 of 41 The general decline in street light levy amounts since 2016 is as a result of paying off a loan from street light reserves for the conversion to LED street light technology. Going forward, a transfer to reserves is required to save for the eventual replacement of street lights.
In 2018, the average assessed residential property in Centre Wellington ($372,746) paid the following street light levy for the year:
• In Fergus: $39 • In Elora: $55 • Rural: $33
If option 1 (i.e. removal of street light levies) was used in 2018, this same property would have paid $29 for street lights on the general taxation levy. This would represent a net savings of $10 for the Fergus property, $16 for the Elora property, $4 for the rural property, and a cost increase of $29 for a similar property currently not incurring a street light levy.
If option 2 (i.e. one Centre Wellington street light levy) was used in 2018, this same property would have paid $42 for the year. This would represent a net savings of $13 for the Elora property, and a net increase in cost of $3 and $9 for the Fergus property and rural property respectively.
All figures above are based on the 2018 street light levies. Given the draft 2019 street light levies are lower, the impact in 2019 on the average assessed residential property would be less.
Consultation: This report was prepared in consultation with: • Lisa Gatto, Supervisor of Accounting & Taxation
Approved By: Andy Goldie, Chief Administrative Officer
Page 35 of 41 Report to Committee of the Whole
To: Mayor Linton and Members of Council Report: COR2019-07 Prepared By: Mark Bradey, Financial Manager / Deputy Date: 06 Feb 2019 Treasurer
RE: Ontario Regulation 284/09 - 2019 Budget
Recommendation: THAT the Council of the Township of Centre Wellington adopt Report No. COR2019-07 regarding additional financial disclosure requirements for the 2019 budget year pursuant to Ontario Regulation 284/09.
Summary: In common with most municipalities in Ontario, the Township is required under Ontario Regulation 284/09 to report on the impact of capital asset amortization, post employment benefit -closureexpenses, and solid waste landfill closure and post expenses prior to passing the annual budget.
Report: Ontario Regulation 284/09 (O. Reg. 284/09) allows municipalities to exclude from the annual budget expenses related to the following:
1. Amortization expenses; 2. Post-employment benefits expenses; and 3. Solid waste landfill closure and post-closure expenses.
If a municipality does not budget for these expenses a report is to be submitted to Council concerning the exclusions before acceptance of the budget.
The intent of O. Reg. 284/09 is to encourage municipalities to plan and budget for the three types of expenses listed above.
Amortization Expenses
The Township’s budget excludes amortization (a non-cash expense) but includes traditional transfers to reserves and reserve funds annually to replace existing assets, and funds are held in reserve and reserve funds to fund future asset replacements.
Page 36 of 41 In the of use the for annual a represents expense amortization theory, charge Township’s tangible capital assets. However, amortization is based on the historical cost of the underlying capital assets and not their replacement cost. As such, transfers to reserves and reserve funds should cover the replacement cost of the assets being replaced and not just the annual amortization expense. This approach ensures sufficient funding is set aside to replace existing assets in the future.
Based on the Township’s asset management plan that was updated in 2016, the Township annually the towards million approximately directing be should $20.8 replacement of the Township’s tangible capital assets.
For 2019, amortization is estimated to be $8.5 million. The 2019 budget includes transfers to reserves and reserve funds of approximately $12.7 million. These transfers are sufficient to cover historical estimated amortization for 2019, but are significantly lower than the amount required to fund the lifecycle of our capital assets based on replacement cost.
Post-employment Benefits Expenses
The Township pays health, dental and life insurance benefit premiums on behalf of its eligible and management-management non early nior retirees to age 65. Se management are eligible for retiree benefits if they retire on an OMERS pension, before the age of 65. Non-management members are eligible for retiree benefits if they retire on an OMERS pension after 55 years of age with at least 25 years of service.
The Township’s budget includes an estimate of the current year’s expenses for existing eligible retired employees and a provision is made for individuals who could potentially retire and be eligible for benefits.
The Township excludes future post employment benefit expenses from the budget, but has accumulated a reserve to fund any eligible retirements in excess of those estimated in the budget. The reserve is estimated to be approximately $54,400 at December 31, 2019.
Solid Waste Landfill Closure and Post-closure Expenses
The Township does not manage any Landfills and as such this O. Reg. 284/09 requirement is not applicable.
Corporate Strategic Plan: Good Government - The Township - informed will make decisions, well operate efficiently, get mmunicate results, co openly and engage the public in important decisions.
Financial Implications:
Page 37 of 41 Ontario Regulation 284/09 allows for the exclusion of capital asset amortization, post employment benefit -closureexpenses, and solid waste landfill closure and post expenses from the Township’s budget and annual tax levy. This is in common with the majority of municipal budgets in Ontario.
Attachments: ● Appendix A - Ontario Regulation 284-09
Approved By: Dan Wilson, Managing Director of Corporate Services / Treasurer Andy Goldie, Chief Administrative Officer
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APPENDIX A
ONTARIO REGULATION 284/09
made under the
MUNICIPAL ACT, 2001
Made: July 31, 2009 Filed: July 31, 2009 Published on e-Laws: August 4, 2009 Printed in The Ontario Gazette: August 15, 2009
BUDGET MATTERS — EXPENSES
Exclusion 1. In preparing the budget for a year, a municipality or local board may exclude from the estimated expenses described in paragraph 3 of subsection 289 (2) and in paragraph 3 of subsection 290 (2) of the Act all or a portion of the following: 1. Amortization expenses. 2. Post-employment benefits expenses. 3. Solid waste landfill closure and post-closure expenses. Report 2. (1) For 2011 and subsequent years, the municipality or local board shall, before adopting a budget for the year that excludes any of the expenses listed in section 1, (a) prepare a report about the excluded expenses; and (b) adopt the report by resolution. (2) If a municipality or local board plans to adopt or has adopted a budget for 2010 that excludes any of the expenses listed in section 1, the municipality or local board shall, within 60 days after receiving its audited financial statements for 2009, (a) prepare a report about the excluded expenses; and (b) adopt the report by resolution. Contents 3. A report under section 2 shall contain at least the following: 1. An estimate of the change in the accumulated surplus of the municipality or local board to the end of the year resulting from the exclusion of any of the expenses listed in section 1. 2. An analysis of the estimated impact of the exclusion of any of the expenses listed in section 1 on the future tangible capital asset funding requirements of the municipality or local board. Review 4. The Ministry of Municipal Affairs and Housing shall initiate a review of this Regulation on or before December 31, 2012. Commencement 5. This Regulation is deemed to have come into force on January 1, 2009.
Page 39 of 41 Report to Committee of the Whole
To: Mayor Linton and Members of Council Report: COR2019-08 Prepared By: Mark Bradey, Financial Manager / Deputy Date: 06 Feb 2019 Treasurer
RE: 2019 Draft Budget
Recommendation: THAT the Council of the Township of Centre Wellington adopt the 2019 budget.
Report: Background
The Township maintains a 10-year capital forecast. Year 1 of the forecast (i.e. 2019) represents the capital projects to be approved by Council through the budget process. Years 2 and 3 of the forecast (i.e. 2020 and 2021) represent the detailed forecast to be approved by Council, with the remaining years (2022 to 2028) provided for information purposes only.
For the first time, the Township has provided a 3-year operating forecast as part of this budget process. This forecast provides a high-level look at the Township’s anticipated tax-supported operating needs to 2021. Year 1 of the forecast (i.e. 2019) represents the operating budget to be approved by Council through the budget process. Years 2 and 3 (i.e. 2020 and 2021) are provided for information purposes only.
2019 Budget Process
Similar to the 2018 budget process, the 2019 capital and operating budget discussions have been combined. In recent past, the capital and operating budgets were discussed separately, with the capital budget approved prior to the end of the prior fiscal year and the operating budget and vehicle and equipment replacement schedules approved early in the new year.
Ideally, staff would present the combined budget to Council for their review and discussion before the end of the prior fiscal year, with budget approval occurring in December. This approach allows the Township to take advantage of favorable tender pricing that is r before typically competition from other offered earlier in the yea municipalities begins. Given the timing of the 2018 Municipal Election, the 2019 budget
Page 40 of 41 process has been delayed, with Council review and discussion occurring in February 2019.
In addition, the fees and charges by-law would preferably be presented to Council during the budget process. Fees and charges affect both operating budgets (i.e. user fee revenue) and capital budgets (equipment replacement funding). Therefore combining these processes gives Council and the public more input and information affecting the budget. With the delayed budget process this year, the 2019 Fees and Charges By-law was passed in December 2018. However, amendments to the by-law can be made, if necessary, in 2019.
The Draft Budget cancomplete be 2019 found on the Township’s website at https://www.centrewellington.ca/en/township-services/budget.aspx#.
2019 Proposed Tax Increase
The 2019 proposed tax increase is 2.2% ($23) plus an increase to the dedicated capital levy equal to 2% ($21) for a total tax increase of 4.2% ($44) on the average assessment for a residential property of $372,746.
Corporate Strategic Plan: Good Government - The Township - informed will make decisions, well operate efficiently, get results, communicate openly and engage the public in important decisions.
Financial Implications: The Council approved budget document is a key policy and planning tool that sets out the Township’s operating and capital program for the upcoming fiscal year.
Consultation: The preparation of the 2019 Draft Budget was done in consultation with senior management. Residents were notified that Council would receive submissions from registered delegates by advertising in the Wellington Advertiser, the Township’s website, and on social media.
Approved By: Dan Wilson, Managing Director of Corporate Services / Treasurer Andy Goldie, Chief Administrative Officer
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