HomeMy WebLinkAboutL 42/98v 4
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REPORT TO COUNCIL
FROM: Penny Wyger DATB: April 23, 1998
Town Solicitor
REPORT NUME3ER: L 42/98
SUBJECT: A Proposed New Municipal Ac►
- Consultntion Document
- File: M6102
RECOMMENDATION:
I. Thnt Council puss a resolution lo cndorsc nnd supporl Ihc iniliutivc of ihc Provincc to rc-
writc the Municipal Acl for the purposc of crcaling a streamlined Iegislative Gamework
thut would givr, municipalitics significnntly moie flexibility nnd autonomy;
2. Thut Council also pass a rcsolutiun which includcs a list of suggcslcd amcndmcnts to thc
proposcd Ncw Municipal Acl;
3. Thot Council pass a resolulion dirccling Ihc'1'own Clcrk to fonvard u copy of lhc Council
resolutians to the Ministry nf Municipal Affairs nnJ I lousing, Locol Govemment Policy
Dranch, prior to Mny 8, 1998; und
4. Thnl this reporl lx receiveJ for infottnntion purpascs.
ORIGIN: A Proposcd Ncw Municipal Act, Consullatian Documcnl, Spring, 1998.
AUTHORITY: Not Applicablc
FINANCIAL IMPLICATIONS:
Tha legisintive chnnges shouid ultimatcly result in cost-savings arising Gom improvcd
administrative efticiencies. The financial implicutians arising from uscr fecs nnd licensing fccs
ure discussed specificnlly in the body of this rcport. Although thero is no dircct out-of•pocket
costs nrising from ihe new Act, the proposed legislativc changes will resull the incrcused
demands on stnff resources necessary to review and rcvisc Town by-Inws and procedurcs in ordcr
to bring them into line wilh the new Act.
EXECUTIVE SUMMARY:
Thc Ministry of Municipnl Affuirs and Housing recenAy circulntcd copies of thc ProEwsed New
Municipol Act for comment. Copics wcre circulatcd to all depurtment hcads, opplicable scnior
munagers und mcmbers of Council for their rcvicw.
The proposcd Iegislation incorporoles n fundamental chunge in thc source of the Iegnl authority
of municipnl govcmmcnt aclion. It rcplaces prcscriptivc rulcs govcming municipolitics with
broad powers and therwftcr crcutcs a strucwrc plecing limitations on those brond powcrs. Il also
mekes substantive changes to thc currcnt legislution which uftect mnny of the systcros, rcgulatory
Rcport to Council
L42/98 Dnle: Apri123,1998
Subjcct: A Proposcd New Municipnl Act poge 2
by-laws, policics and programs curtenlly used to support thc Town's day-to-day oExrations.
Oncc the ncw legislution comes into force, seveml Town policics nnJ by-Inws will nccd to bc
amended extensively, within the timc fmmcs spccificd in thc Acl. 7'his report is inlcndcd to
focus on thc impnct of ihc proposcJ Act on Pickcring's cxisting operntions and to idcnlify major
nrcus of concern, (including thc provisions which appenr to lip thc balancc of powcr unJ
authority in favour of the upper-tier Ievcl of govcmment). It also idcntifics thosc provisions
which rcstrict lhe Town's ubility to respond ef'fectively to incrcnscd demands crculcd by the
Provincinl downlonding and finnncial cutbucks. It concludes with a list of suggcslcd
nmendments to thc drnfl Iegislntion for Council's considcrution, which list Counril may wish to
bc fonvnrdcd to the Ministcr of Municipal Affoirs.
Although the Ministry suggests thnt the proposcd Icgislation will give municipalities a
sircnmlined Iegislativc Gamework which will ullow Ihem more uutonomy nnJ ilcxibility to run
thcir affuirs as cffcclivcly as possib!r„ on closc exnmination, this docs not apExiv to bc the cusc.
Thc proposcd Act is structurcd to nllow for furthcr futurc restrictions to bc imposed on
municipulitics ihrough provincial rcgulutions, oncc thc Provincc has a txltcr undcrstunJing of
how municipalitics apply thc Icgislation. Unlcss locnl municipalitics huvc an opporlunity to
parlicipatc in n mcaningful way in ihc crwtion of such rcgulalions, thc Provincc may takc uway,
through regulution, whut it nppcars tn bc gmn�ing Ihrough thc Icgislution, 'I'hc Provincc
mnintnins comrol whilc �assine responsihilit�� tn Ihc municinal sector
I3ACKGROUND:
Thc druD new Municipal Act wns rcccndy rdcascJ hy Ihc Minisiry of Municipal A�'uirs and
Housing for consullution. Commcnts urc rcyuircJ to Ix proviJcJ tu thc Ministry prior lo Mny 8,
1998.
CONTINUATION OF TIIF. MUNICIPAI ITY
Under thc proposcJ Act (Ihc "Act"), Pickcring ���ould conlinuc to cxisl a+ a lowcr•licr
municipality. It would havc thc samc gcographic limits and woulJ continuc to bc callcd "The
Corporation of thc 1'oan of Pickcring:' Scction 6 climinatcs thc prcvious distinctions hetwccn
citics ond lowns. Pickcring thcrcforc will bc classificd os n lowcr-ticr municipalily, Thc
Regional Municipality of Durhnm will bc classificd as thc applicablc upper-ticr municipality in
thc existing twa•ticr sysicm.
SPHF,RF.S OF JURISDIC7'f0�1
In the past, u municipaliry only had Iegal authoriry to ncl if it hnd specific Icgislativc authority to
do so. As n rcsult, over timc, muny special acts and numerous privntc ncts wcrc passed by Ihc
Province to denl with specific legul needs of individual municipalilies. Thc ncw Act will rcplucc
the existing Municipni Act together with over 30 othcr stntutes. The Rcgionnl Municipalitics Act
and tho Regional Municipality of Durham Act are two of the morc significant ucls curtently
guiding the operntions of the Town which will be repenled once the new Act is pussed.
Section 8 of Ihe proposed Act givcs thc Town gcneral aWhoriry rcfcrtcd to ns "nntural person
powcrs." Scction I I dcscribes 13 brond arcas of rcsponsibility rcfcrrcd to as "sphcrcs of
jurisdiction" within which thc Town is cntiticd to cxcrcisc its nntuml person po«�crs as wcll as
certnin spccificd "govcrtuncntul powcrs". Govcmmenlnl powcrs includc powcrs for icvying
texes, regulnting nnd prohibiting mnttcrs, enforcement, nnd estublishmcnt of licenscs and
pertnits. 7'hc Town's financial powcrs gcncrully canlinuc to bc subjcct to prcscriptivc woniing
in the pro{wsed Iegislution.
Netural person powcrs do not give the Town thc broud powcrs and llcxibiliry to opcmte and
conduct business in the broad arcas of jurisdiclfon not found elsewherc in the Ac�. They will
hawever provide authoriry to undednka administmtivc motters such as entcring into contrncls nnd
hiring consulinnts end cmployecs and to dcicgntc administrativc functions (not Icgislativc
`Report to Councii
L42/98
Dutc; April23, 1498
SubjccL' A Propascd New Municipnl Act Pngc 3
functions). Il is imoortant lo notc Ihat thc Town can onlv perform thc functions of a namrnl
ocrson while Qpernline within a desi�cd spherc of juriuliction unJer ihc Act with somc minor
cxceptions. nnd while opcmting wilhin thc �gmnhic limits of lhc Town of Pickerine.
Thc natural person powcrs would includc a prohibition ogainst sctling up a profit-making
corporntion, or buying sharcs in a company (Section 21). This typc of rcslriction scvcrcly Iimils
the type of joint publidprivnte sector vcnturcs avnilubie to Ihe Town.
Municipalities ahould be permllted fo incorponte companles or own ahares in companiea,
subject to �pecitic provisioos to bc established by regulalion to preaervc municipal
accouofability and financial reapan�ibility, in order to permil mun!cipalitics to Iimit Ihcir
liability when entering inlo ventures such a� publidprivate partner�hips. Such partnership
muy be thc most eliicient mcans to decrcusc the costs of providing municipal scrviccs or to rnisc
rcvenucs for thc municipality.
Thc Town's ncw powcrs to nct within thc 13 sphcrcs ofjurisdiction nrc furthcr limited by thc
following:
• Municipal by-laws cunnot ix ublc to con0ict «�ith fcdemi or provincinl laws;
• Municipalitics cnnnot rcgulatc in n morc restrictivc ���ay than a provincial rcgulation;
• Municipalities cannot rcgulnte in certnin defineJ anus of exclusive provincial jurisdictian
such us workplucc hcnith und safcty (Scctinn 18);
• Municipal bylaws nre subjcct to uny proccduml rcyuinmcnis nnd limits containcd in s�xcific
provisions of thc Act or any olhcr Act;
• Municipalitics �voulJ nul lx ablc to regulatc or prahibil pri��ulcly-oti�ned sysicros unJcr thc
"public ulilitics', "wastc mnnngement' nnJ "ir.�ns�x�rlution systcros ather thun "highwnys",
sphcres of jurisdiction;
• Municipalitics ti�•oulJ nol bc ablc lo Jo somc things othcr natur,�l �xrsons cnn do, such as sct
up n corpornlion or purchasc sharex in o company;
• Municipalilics would nol bc ablc to grant any �xrson u mono�xily or carrying on any
busincss, Irndc or occupalion, unlcss s�ciftcally uuthoriicJ to Jo so;
• Municipalities would only Ix ablc to cxcrcise their aulhority within thcir gcogrnphic
boundurics (with somc cxccptions);
• Lower-tier municipalities cunnol rcgulute in sphercs ofjurisdiclion nllocnted exclusively to
its upper-ticr municipality; ��nd
• Eiy-Inws of loµ•cr•ticr municipnlilics cunnot conflict with by-I�.vs of thc upper-ticr (i.c. whcn
dealing in sphercs ofjuriscliction shared by both liers),
Thcsc powers will likcly be limitcd evcn furthcr by the case luw which �vill develop over lime ns
municipalities begin to opemlc undcr thc new Act.
UPPER TIER (RF.GIONALI PARAMOUNTCY
Pursuunt to section I1(2), if n sphere of jurisdiction is assi�ned exclusivelv to nn upper-ticr
municipalitv its lowcr-ticr municinalitics do not have Ihc powcr to nass bv Inws rcsncctine
mutters within thnt snhere or nan. The table es set out in thc Acl idcntifies those pans of thc
sphcrc assigned exclusivcly to specific upper-ticr municipalitics. ('fhc chart attachcd to this
report outlincs the allocation of mattcrs wilhin the 13 sphcrcs bctwccn thc To�m and thc Region
of Duthntn). Por thosc sphcres which urc not exclusivcly assigncd lo Ihc Rcgion of Durham, I�
Town cun only oass bv-Inws that do not conflict with thc Rceion's by � � It is possiblc for
sphcres of jurisdiction to overlop. If thcrc is con0ict bctween Ihe upper nnd lo�vcr•ticr thc
uoncr-ticr bv-law ovcrtides Ihc lowcr-ticr IScction I51, Thercforc, even whcn un nrcu is nol
assigned to an upper-ticr municipulity, bccousc of thc ovcrlup of thc arcns of authority, it is
possiblc thnt thc upper•tier municipnliry may ovcrrulc thc impacl of thc lowcr•ticr municipality'a
by-law.
Rcpon to Council
L42/98
7
Date: April 27, 1998
Subject: A Proposed Ncw Municirul Act Puge 4
Thrnretically, if the Town wns opemting within u parlicular sphere of jurisdiction, Ihe ficgion
could subsequently entcr the sphere and undertninc the Town's position by passing a bylaw
which conilicts with thc Town's by-law.
lt will bc neccssury in Ihc future for thc Town lo be fully awurc of thc cxistencc of ull Rcgianul
byInws nnd the extent to which thc Region has occupied any non•cxclusive spherc of
jurisdiclion, prior to thc Town pacsing byInws within thnt sphcrc. 'fhc potcnlial for wn0ict is
cviden6 Acwrdingly, 't is ' mtivc thnt Ics rclntin � to ihe assi mmcnt of s onsibilit nnd
�hc ovcr n pine of nuthority be eslablished
Pursuunt ta Section 9U, lhe Region enn puss wning byluws for Innds within 45 mctres af uny
limit of u Regional highway. Although this scclion mcrcly carrics fonvnrd from existing
fegislation, it should not be con�inucd in the new Act bccuuse it rreates opportuniry for thc
Region to tnkc control of whnt should be a lowcr•licr matter. Thc Region cummly has thc right
to appcal n locul r.oning by-law to Ihc Ontario Municipal Doard. 7'hc oppcal proccss to Ihc Doard
should be the exlcnt of thc upper-ticr's influcncc ovcr the lowcrvticr's zoning oWhority. Secl(on
90 should be JeleteJ tram the new Act
Thc Tablc in Scclion I I of ihc pro�sed Act assigns cronomic dcvdopmcnt (promotion of thc
municipality) exclusively to thc Reginn of Uurhnm. Scclion 130(2) ullaws Ihe Region of
Durhnm to auliiori•r.c onc or morc of its la«cr•Iicr municipalitics w pass byImvs respccting thc
promotion of ihc lowcrvticr municipality on such conJitions ns thc Rcgion consiJcrs appropriutc.
Economic Devclopmcnt (rromntian of Ihc mun(cinality and industrial and commcrcial
aecloro) shoulJ not be a+�iened cxclusivcl�ln Ihe Rceton of Durham in the Tnblc formfn�
�art of Sectinn i l.
Scclion IS is too broaJ and gcncric crcnting op�rtunilics for ihc Itcgion to unJcrminc ihc'Po�m
even Ihough the Town may be dcaling ��ith issucs �vhich have significanl impacts on locul
residcnts, Sectlon 15 ehoulJ bc rcH�is�jcd en Ihet in thc event of cnn0ict ihe bv-law� of thc
Inwcr-tier rather Ihan unper-ticr nrrvail, nr in Ihc allcrnativc a co�t-effeclive mcchantsm
ahould be c�tabli�heJ in Ihe Ic i�lutinn to a�d�l in the Jcterminatton of whclhcr the lowcr
o u pervtier by-law ahould nrcvpil. nn a ce�c bv casc ha�i�.
PROVINCIAL RF.^,UI.ATION
Thc Provincc shoulJ not hc aMlc lo ovcrtidc Incul bv-Inws hv rc�ulntion. Rcslrictions on
municipnl powers should bc subjcct to Icgislativc process which proviJcs municipalilics wilh thc
opportunily la mnkc rcprcscnintion on ihc spccific issues. Iixpanding Ihc poµ�cr af ihc Provincc
to rcgulntc docs not bring an cnd to provincial involvcment in strictly locnl issucs, as prcviously
swted by Ihe Minister.
Supporting material provided by the Province slntes that: "when a municipality wnnls to do
somclhing new, no Icgislative nmendment would be necdcd". While that is corrcct in thcory,
IimiWtions are built into lhe Act which will humper futurc municipal crcntivity, Sections 402
nnd 149 of thc Act would allow Cnbinct to restrict municipal powcrs by rcgulntion.
It will bc intcresting to note how quickly ihe Provincc begins to chip away at thosc bronJ powcrs
grnntcd �o municipnlities through thc applicnlion of rcgulations, if municipalitics cunduct
busincss in m m�nncr which thc Provincc perceivcs is not fully in linc wilh thc currcnt Pmvincinl
philosophics end nscndas.
It could bc urgucd that in nddition lo Icgislnlion and rcgulations, uny liccncc, ordcr or pemtit
issucd by Ihc Provincc would fall within Ihc rcquircmcnls of pmvincial rcgulntion for thc
purposcs of thc Act. Municipnl bylows will bc suboniinatc to any instrumcnt of a Ic_{slati��c
nature, which will includc nny ordcr, liccncc or approval modc undcr a provincial or fcdcml
stnwtc or rcgulalion.
►� � .
• Report to Councii
L42/98 Date: Apri123,1998
Subject: A Proposed New Municipnl Act Pngc S
Therefore, provincinl regulation should bc limited to legislation nnd regulations only. If locul
objectives nrc being nddresscd by lhe Town's by-law which do not con0ict with provinciul
regulution ihen both tha provincinl rcgulation and the Town's bylaw should be ullowed to co-
exist. Section 17 does nat permit thnt to occur.
The Act rcserves to the Province a brond power to pa�s regulations to rcstrict lhe uuthority of .
municipalities to puss byInws, which nre in ihe opinion of thc Licutcnnnt Govcmor
"unnecessnry" or which "rcpresent duplicntion" or to restrict a municipality's nbility to cngngc in
commercial activity (which is undefined), or which rcprcscnts inapproprinte compctition with
"private commercial nctivities". The Province may pass regulutions which apply to diffcrcnl
municipalities difTerenqy.
There nre no meuns availuble for the Town to monitor every order, licence or npproval of the
ProvE:�ce (Section 17(2)). An eusily asscssable datnbase should be estublished to nllow the Town
to ensurc thnt ils by-laws do not conflict with Regional by-luws and to ensurc that thc Town does
not regulute in thc same nrea in which thc Provincc has rcgulnted. The costs of providing such a
tool should not be bome exclusively by the To�m.
Section 17 should cither be deleted or, in thc altcrnalive. Ihe Province should cicarlv define
Iho�e arese in which municipal rceulatfnn� anJ nrovincfal rceulatlnns can co-exisf. Thc
Provincc should proviJc n database for acccss by municipalilies to ensurc thnt thc spherc is not
occupied by the Provincc. Provinctal rceulatfon in Secttnn 17 should be amendcd (to cxcludc
provincial orJcro, licenees and ncrmits). It shauld bc defineJ tn include only nrovfncial
lep_islallon anJ re�ulalion�.
TRANSITION PROVISIONS
If Pickcring has any byInws in pincc ihnt coulJ con(licl �vith any of thc aforcmcntioncd, the
lransition provisions of Ihc proposcd Act providc lhal such bylaws will continuc in forcc until
repealed or until ihe ncw Act hus bccn in placc for three ycurs. Thc by-Inws continue to exist
even if lhe jurisdiction to pass such by-luws hus been lost through thc chnnges in the Act. Slaff
will therefore bc required firsAy to establish to what exicnt such conilicts exist nnd IherwDer, lo
amend the Town's by-Inws nnd/or pmcticcs nnd proceJures uccordingly, while continuing to
protect and addrcss the locnl intcrests nnd concems which gcncrated thc nced for thc Town by
Inw in the first placc.
PRACTICF.S AND PROCF.DURES
Thc Act provides thc Council with broad discrction to determinc its awn proccdurcs nnd
ummgements. Pickcring will hnve broad discrction to arrange committee structures nnd to
configure its procedurnl by-laws. Mnny of the current sintutory notice provisions will bc
removed and replaced with n requirement thut councils establish nnd udhcre to policies govcming
how they wiil consult with the public and in what manner Council will give noticc to the public
conceming the various mnttcrs which come beforc il. It will be neccssary for Council to
determine the nppropriute notice and consultative process nnd thercaRer to review and rcvise
meny of Pickcring's cxisting procedural by-laws nnd Council npprovcd pructiccs.
The Town will be requircd lo revicw and revise, where approprintc, its existing proccdurcs
regarding sale of municipnl Innd, road closings, and gcneral proccdurnl bylaws. The
detertninatiun of what are approprinte consultation und notice policies will Ix n ditTicult task.
Council �vill hnve the rcsponsibility to bnlance thc objectives of public consuimtion and
pariicipation aguinst ndministrntive efficiency when estnblishing such policics.
Report to Council
L42/98 Date; April 23,1998
Subject: A Proposed New Municipul Act Pagc 6
DELEGATION OF ADMINISTRATIVF. AC'fIVITY TO STAFF
Thc Act does not contnin a specific provision enahling thc Council lo dcicgntc adminisirativc
funclions to sta(f: Authority to dclegatc such funclions wauld bc considcrcd pan of thc natural
person powcr. Therc is no specific provision ennbling thc dclegntion of non•adminislrativc
activiry, The nbsence of n cicnr definition of "administmtive" may result in crealing ihc potcntinl
for future litigntion. Council ahould requcst fhat Ihe Mini�ter include nrovisions adJres�i�
the need to deleeate non-adminiatrative activitiea to members otsta(f within specified areas
such as temnorar�oaJ cloainea.
TREE BY-LAWS
U n municipaliry passes u by-Inw restricting the cutting of trces, Seclion 108 rcnders such a by-
law inelT'ective ugainst another municipality, conscrvation uuthority, school board, Ontnrio
I�ydro nnd olhers. A municinal free cuttin� by-law should be enforccablc for all lands
within ihe munictpalitv reeardles� of ownershin and should not exemnt puhlic and quasi-
pubNc badic�.
13USINESS LICF,NSINC
Thc proposed Act providcs for broad liccnsing po«�cr suhject to limitalions. I.icencc fces for
ench cinss of busincss cunnot cxcccd thc cost of ndministcring anJ enforcing thc licensing bylaw
with rcspcct to that class oC busincss. C:ach by-Inw must coninin u stalcmcnl us to why thc
municipality is liccnsing thnt clnss of busincss. Through regulution, Ihc Minislcr will bc ablc ta
excmpt nny business or cinss of business Gom any part of thc licensing hylaw anJ imposing
conditions and limils on thc 7'o��ro's po«cr �o pass a liccnsing by-lu�+�.
MUNICIPAL RF.STRUCTURING
Thc proposcJ Act provides nuthorily for municipalitics lo restructurc (Scctions 190 to 204).
Those provisions would not apply to Ihc Rcgion of Durham and ihc Town except for minor
rcstructuring proposals. This may suggesl that the Province inlenJs lo dcal with restrucluring of
the rcgionnl municipalitics in a morc dircct and comprchcnsivc mnnncr through futurc
Icgislntion.
That the provisions of Secfion� 190 tn 20A shoulJ be muJe anPlicahle In Ihe Rc�innal
Municipalitv ot Durham and ita lowcr-ticr muntciPaliUcs.
EMPLOYMENT MATTF.RS
Section 18 of the Act prohibits the Town from regulating with rcspect to humnn rights,
workpluce hculth nnd snfety, employer/employce rclations nnd specific provincial progmms. The
provision may prevent municipalities fram rcgulating in tmditional nrcas such as smoking by-
laws, workpince hnrassment policies und racc•relations policies. Thc broad tcrtns nced to be
clurified as they rclate to policies and spheres of jurisdiction.
TAX SALF.S
Municipnlitics will not bc ablc to write•of�taxes until they go through on unsuccessful tux salc.
Should thc 1nx snlc bc unsucccssful, thc municipalily is not obligcd to rcgislcr n vcsting
ccrtificntc, This will avoid ihc municipnlity having to bccamc rcsponsiblc for propertics which
hnve becn ubnndoned by awners rnthcr Ihan cicnn up contnminution to provincini standards.
There is no specific authority for thc Trcusurcr to dclegatc tux snlc dutics ns provided in thc
cxisting Act.
The�ct ahonld �ecificelly allow Ihe Trea�urer fo dciceatc anv of the duNca of nrocesaine
tax eale� la olher ofticero ur emnlovcc� of the municinulirv.
Ae�port to Council
L42/98 Date: April 23,1998
Subjcct: A Proposed New Municipal Act Pogc 7
FINANCIAL ADMINISTRATION
Sectian 265(I) rcquires the Town, as part of Ihc process of udopting its budgct for a ycur, to
estnblish nnd muinlain u list for public inspection of the classes of business which will bc subject
to a business licensing fee under Purt 111 of the proposed AcL The list will stntc which of its
services, aclivities und casts und the use of which property will 6c subjcct to such fces and
chnrges.
The list should not need to be prepnred unnuully and be part of the process of ndopting its budgct
for the year. Improving municipal finnncial nccountability to tnxpayers is n worthwhile
objective, however; such mandutory rcquiremenls should be set out in u municipal by-law,
updnted every thrce to five ycars nnd not mandated to be included in the preparation ond review
of the annuul budget document. Amendmcnts to the user fces und licensine fecs list n(ler Ihe
budget has been nnnrovcd should not rcauire the budeet nrncess to bc rcvisitcd.
Section 267(I) gives thc Ministcr the uuthority to rcquire a municipality to establish u rescrve
fund designutcd for prescribcd liubilitics of the municipnlity which nrc incurtcd but not payublc
until later ycars. The Province hns staled thnl it has un interest in the finnncial integrily of
Onturio's municipalitics. 'I� `s intcrest should bc broad in nature. 1'hc Province should Icave
such requirements to Ihe discretion of municipal councils. Section 267(11 shoulJ be dcleteJ,
POTENTIAL RF.OUIRF.MENT FOR A tiUPPI.F.�IF.NTARY AUDIT
The first consultation document issucd by the Province in March of 1997 stated that in addilion
to thc annual uudit rcquircmcnts, municipalitics «•ould bc rcyuireJ lo abtain n supplcmcntary
nudit rcport. Thc coNents of thc supplementary auJit rcparl will bc prescribcd by thc Minister
by regulution nnd includc a scrics af opinions on thc udcquacy of financial proccJures nnd
systems, whethcr funds havc bcen disburscJ only unJcr Icgislativc uuthoriry and whcthcr thcrc
are any irregularitics or Jiscrepuncies.
While thc rcquirements anJ standards for thc supplemcntary auJil, wcre not speciftc in the
rclense, a wnsidemblc amount of municipal resources a�ould bc uscJ to comply with thesc
rcquircmcnts. Curtently, municipal auditors undcrluke what is dcscribeJ ns a"test" nudit
process. Under thc proposed ndditional arrungemcnt it would bc necessary for the municipal
auditors to perform u dctnilcd audit of evcry municipal tranwclion.
The proposed Acl does not specifically cover the requiremcnl for u supplcmentnry nudit rcpart.
Fiowever, the provisians contained in section 270(I) of Ihe Act would allow the Minister to
require municipalitics to have supplementary audits undertaken. Section 270(I) requircs n
municipality to nppoint un extcmnl auditor to perfartn an nnnunl nudit of thc trnnsuctions/rccords
of municipalities which is contained in existing legislation. Thc nuditor must also perfortn
"...duties designated by the Minister;" and dutics "rcquircd by thc municipality or locnl board
which do nol conflict with the duties designated by the Ministcr."
Sunnlementarv audit re�oHs should not be a mandatorv requirement. The nced for
supplementarv audit reoorte ahould 6e determtned by municinal councils.
MUNICIPAL TAXATIOfJ
'fhc instnllmcnt dntes in thc praposed legislation for thc poyment of upper-ticr tax Icvics by thcir
constitucnt lower-ticr municipnlities would upply in futurc to regions as wcll ns counties and
school bonrds (Section 281(7)).
•Report to Council
L42/96 Da1c: April23, 1998 �'�
Subject: A Proposcd New Municipal Act p��� g
Section 292 nllows the Minister to scl regulations with respect to thc timing of Ihc dislribution of
PILS to the uppco-tier and to school boards. Thcsc dates could bc diffcrcnt from ihc qunrtcrly
paymenis for imnsfcr of twces. Hurmonizing thc distribution of tuxcs nnJ PILS would bc thc
most efficiem, easy lo accommodutc from a rewrd keeping point of view and would treat cach
agcncy in n fair and cquiwblc manncr.
One set of date� for all municinaBNes fo foliow for nayine both tax and PIL receints la the
unner-tier municioali' • md fo school boards should be Iceislated
In ihe case of Iute payments from the lower-ticr municipality, thc upper-tier municipality can
chazge 15% intercst whercuc in the case of advunee payment, lhe upper-tier municipaliry can pay
inicrest ut whutcver rnte il dctermines. The lowcr-tier should be cntilled to IS% intcrcst on
advancc pavments.
FEES AND CHARCF.S
Thc uscr fces provisions thnt werc enacted in the Savings and Restructuring Act, 1996 (Dill 26)
nrc continucd in thc proposcd new Act. Thc ncw provisions providc municipalilics with "brond"
nuthoriry nnd muke the exisling "specific" uscr fee provisions in Ihe cumnl Act rcJundant.
A new proccss to cnhancc municipal accountabilily �eould bc eslablishcd �vilh thc new Act,
which municipalitics would huvc to follaw in dc�•cloping and administcring thcir policy of user
fccs. This is similnr lo thal fur busincss lircnsing us sct out in scclian 266 of Pnrt IX, �inuncial
Administration. As is thc casc for busincss littnsing, municipaliiics «�oulJ bc rcquircd,
nnnunlly, lo prcparc n list thal would stalc which of its scrviccs, nctivitics nnJ wsts and the usc of
which property will tx subjcct to such fccs anJ chargcs. '17�is lisling will farm part of thc nnnunl
budget proccss of municipulitics nnd should bc op�wxcd by thc'foa�n.
A li�t af u�er fces anJ liccnsine fee� shnuld bc ict oul in a municipalih• hv law which ic
undated at a minimum cvcrv thrce lo fivc rcan it Shnu1J not necc��arilv he includcJ in thc
nrenaration and review of Ihe annual buJect dncument
A rcvicw of thc To�m's cxisting fec struclure shnuld be undcrtakcn to assemblc a comprchcnsive
listing of nll such fces which will rcquirc adoplion by Council during thc budget proccss. The
Provincc retnins thc nbility to invokc regulations which a•ould restrict thc abilily of thc Town to
chnrge fces. Although initiully, the Province encoumgcd municipalities to nct like busincsscs by
mising �cvenuc through user fccs, thc ncw Act rcquires a by-Inw ta imposc fccs or charges which
would raise rcvcnue in cxcess of full cost recovcry to explain why thc fee or chargc exccedcd
cost recovery. Determination of cost recovery could bccomc a compicx, time•consuming nnd
expensive undcrtaking which may discoumge thc Town from charging uscr fccs in somc
instances. (It is not ccAuin whether the wsts of undertnking thc neccssary studics to detcrtnine
tha fce cun be included in the fee itsclQ.
As it rclates to telccommunication compnnics, the abilitv to charee for the use at the
municinal riv,ht-of-wav should be incornorated into the new Acf
Thc Act does uot empower thc Town of Pickcring sufficienUy to respond to changing demnnds
on the Town. Although many of the cumbcrsomc provisions of thc existing Iegislntion arc
removcd, thc Act crcalcs uncedninty and cstablishcs a structure thnt allows scnior govemmcnts
to restrict local level powers through stnlutory umendment, rcgulations or minor ennctmcnts.
RFCOMMENDATIO V�,S�
I. That thc'Pown Clcrk advisc thc Ministcr of Municipul Affairs and Housing that thc Town of
Pickering endorses and supports thc initietivc to rc-writc thc Municipal Act for thc pu�osc of
creating a streamlincd logislntivc Gamework that would givc municipulitics significantly
morc Ilexibility end autonomy.
' 1 �icpoA to Council
L42/98
Dntc: April23, 1998
Subject: A Proposed New Municipul Act Page 9
2. That thc Minisler of Municipal Affairs be requcsted to consider nmending thc Icgislntion to
addrcss iha following concems:
(I) Thut Section IS be umended so that in the event of conilict bctwccn the by-Inws of an
upper nnd n lowcrticr municipnlity, thc bylaws of thc lowcr-ticr rather thnn thc upper-
ticr will prevail, or, in the altcrnnlive, thut n cost-effective mcchanism bc establishcd to
detcrmine, on u c�e by cnsc busis, whclher the lower or upper-tier by-luw should prcvnil.
(2) The Acl should require upper-tier municipalilics lo consult with lower ticr municipalities
bcfore they pass uny by-Inws in order to identify and address thc particulurs of any
patcntial conilicts with lower-ticr municipal by-laws.
(3) Request thnt the Minister relense in the ncnr future u draft of the relatcd regulations to the
new Acl, nnd provide sufTicient time for municipal rcvicw and comment on Ihosc
additionnl rcquircmcnts.
(4) The Acl should requirc municipnl consullution on futurc regulations affecling municipal
govcmments bcforc thcy arc cnncicJ by thc Provincc.
(5) Section 17 should bc dcicted as thcrc is no c�'ecti��c mechanism uvailnbic lo kcep trnct of
ull ordcrs, licences and npprovnls issucd by provincial sta1T. In the nlicmotivc, Scclion 17
should bc restrictcd to upply only to provincial Icgislatian or regulalions nnd should
exclude provincinl licences, orJers and approvals. Section 17 should be expanded to
dcfinc thosc nrcus in which municipai ngulution unJ provinciul rcgulalions can co-cxist.
(6) Thc tablc in Scction I I should bc amcndcd us fallo��•s:
a) Thc promotion of thc municipulity �rtion of thc cronomic Jcvclopment sphcrc of
jurisdiclion in thc Rcgion of Durhum shnuld bc assigncd nan•exclusivcly to thc
Rcgion of Durham; nnJ
b) The sphcrc of jurisdiction pertnining Io drainagc anJ t1ooJ conlral should bc
idenlificd as "Drninugc anJ flood conlroi", and Ihe pnrt af thc sphcrc assigned shauld
bc idcntifieJ us "Wholc sphcrc, exccpt storm scwcrs". (This amcndment will clarify
thc intcntion thut stortn scwcrs fnll wilhin Ihc exclusivc jurisdiction of thc lowcr-ticr
municipality in u two-tier system). As currcntly Jrafled, stortn sewcrs are not
includcd in uny sphcre of jurisdiclion.
(7) Section 90 of the proposed Act which pertnits nn upper-lier municipality to pass zoning
by-luws in respect of land lying within 45 metres from nny limit of an upper•ticr highway
should be deletcd. The upper-ticr municipnlity should be limited to thr.ir existing rights
of uppcul to the Ontnrio Municipal Eioard.
(8) Section 108 should bc amended to delete the exemption of public and quasi•public bodics
from municipul trcc cutting by-luws.
(9)'fhe Act should include a provision authorizing lower•licr municipalilics to chargc
tciccommunication compnnies for Ihc usc of municipul rights•of-ways.
(10)Thc provisions of Sections 190 to 204 rcgnrding municipnl rcstructuring shoulJ bc
npplicnblc to ihc Regional PAunicipulity of Durhnm and its lowcr-ticr municipalitics.
(1 I) Municipnlitics should be permittcd to incorporatc companics or own sharcs in compnnics,
subject lo spccific provisions to be establishcd by rcgulntion to prcserve municipul
nccountebility und finnnciul responsibility, in ordcr lo permit municipulitics to limit thcir
liability when cntering into venturcs such as publidprivntc pnrtncrships, to dccrcasc Ihc
costs of municipul scrvices or to raise rcvcnues for thc municipulity through commcrcinl
vcntures,
.,
� Report to Council
L42/98
I3
Datc; April 23, 1998
Subject: A Proposed New Municipul Act 1'agc 10
(12)A provision should bc udded to thc Act uddressing Ihe nccd to dclegatc non-
ndministmtive nctivitics to municipul staff inembers within spccified arcus bcyond
tempomry road closings.
(13) Thc Act should include n provision authorizing the Trcusurcr to delegalc any of the dutics
of processing tax sules to other officers or cmployees of the municipality.
(14) Thnt thc Act bc amcnded lo permit the list of user fecs and licensing fces to bc nmcnded
by municipal by-law without rcquiring the budget process to be rcopcncd.
(IS)Thnt thc provisions of Section 270(I) be amended in ordcr to cxclude the possibility of
the Minister rcquiring mundulory supplcmentary nudit rcports becuusc such reports would
be onerous, costly nnd lime•consuming and thcrcfore should be rcquired only at thc
discretion of thc rcspcclivc municipai councils.
(16)Thnl Section 267(I) giving thc Minisicr thc authority lo rcquirc municipalitics �o
cswblish a rescrvc fund dcsignated for prcscribed liabililics of thc municipalily which nrc
incurrcd but nat paynhlc until lalcr years bc dcleted, thcrcby Icaving such rcquircments to
ihc discrction of municipal councils,
(17) Onc set of dntcs for all municipalitics to follow for paying balh tax nnd PIL rcccipls to
thc uppervtier municipality anJ to school boards shoulJ lx Icgislatcd.
(IS) Lawcr-ticr municipalitics shoulJ tx cntideJ to 15% inlcnst on udvancc Inx paymcnts.
(19) Tha worJing of thc provisions of thc pro�xiscJ art rcgarJing payments in licu of twces
should bc umcndcd to rc(lcct Ihc cxisting practices in lo�ecrlicr municipulitics.
ATTACHMENTS:
l. Assignment of sphcrcs bctaccn Pickcring nnd burhnm Rcgion.
Preparcd By: Endorscd Dy:
��� � �
�;'.. �.�. .• � 1
Penny�Wygcr - � 7' iom is !. Quinn
�/
PLW:Ijm
Adnchments
Copy; Generol Mnnager
�'� 1� ATTACHMENT N� TO REPORT q�9�1�d'
� I4 ASSIGNMENT OF THE SPHERES OF JURISD1CfION DETWEEN
LOWER TIER AND UPPER TIER MUNICIPALITIES
(PICKERING AND DURHAM REGIOI�