HomeMy WebLinkAboutFIN 06-24Report to Council
Report Number: FIN 06-24
Date: March 25, 2024
From: Stan Karwowski
Director, Finance & Treasurer
Subject: 2024 Financial Housekeeping Report
- File: A-2000-001
Recommendation:
1. That Council approve the 2024 Low Income Seniors & Persons with Disabilities grant
amount, to be increased from $535 to $560 per household;
2. That the City’s share of the Municipal Accommodation Tax be used to fund tourism-
related capital infrastructure;
3. That Council approve the cancellation of the following previously approved Capital
projects:
Project
Number Description Unspent Budget
Amount
C10235.2203 O’Brien Hot Water Tank Replacement $60,000
C10240.2007 Purchase and Installation of Electric
Vehicle Charge Station at the Civic
Centre
$25,000
C10300.1801 New Security Cameras $27,500
C10315.2106 Front Plow & Wing Attachment for
Seaton Plow
$40,000
C10320.2204 Vacuum Excavator with Trailer
Replacement
$95,000
C10510.2301 Mid-Size SUV New $45,000
C10510.2303 Various Construction Projects $200,000
C10515.1801 WO-2 Kingston Road – New Sidewalk
Installation
$332,660
C10575.1806 RO-12 Kingston Road Sidwalk &
Streetlights
$175,500
C10575.1905 BI-17 – Church Street – Sidewalks &
Streetlights
$325,000
C10575.1906 TC-7 Kingston Road Sidewalks &
Streetlights
$133,500
C10700.2306 Dispatch CAD Replacement $350,000
C10700.2308 Fire Station #5 Land Purchase $3,500,000
C10900.2003 Central Library Outdoor Drop Box $10,000
FIN 06-24 March 25, 2024
Subject: 2024 Financial Housekeeping Report Page 2
4.That Council authorize staff to expand the approved scope, as included in the 2023
Capital Budget, for project C10240.2307 – Satellite Office Leasehold Improvements,
originally planned for pre-occupancy renovations and leasehold improvements at a
future satellite facility (location yet to be determined), to include consulting and related
costs for completion of a Municipal Space Utilization Study, in an amount not to exceed
$300,000 (net HST);
5.a)That the Director, Finance & Treasurer be authorized to combine capital projects
C10570.1803 Greenwood Bridge and C10570.2403 Sixth Concession Rd. –
Road Reconstruction to facilitate project management and administration of
these projects, by transferring the budget of $1,200,000 from C10570.2403 to
C10570.1803 and subsequently closing C10570.2403;
b)That the Director, Finance & Treasurer be authorized to combine capital projects
C10900.2203 Accessible Public Washroom (Claremont) with C10900.2106
Claremont Hardware for Extended Service Offering – Technology and
C10900.2205 Improvements to Claremont Library Public Service Space by
transferring the available budget of $55,000 from C10900.2106 and $55,000
from C10900.2205 to C1900.2203 and subsequently closing C10900.2106 and
C10900.2205;
6.That Council approve staff attendance at international technology conferences, in
accordance with Subsection 10.02 of the Financial Control Policy, as follows:
a)International travel by the Division Head, Information Technology, Supervisor,
Network Support and Senior Systems Administrator to attend the 2024 Dell
World conference in Las Vegas, and that the total conference costs not exceed
$3,000 (CAD); and
b)International travel by the Manager, ERP & Financial Systems or designate to
attend the 2024 annual SAP Sapphire Conference in Orlando, Florida, and that
the total conference costs not exceed $5,000 (CAD);
7.That Council authorize the establishment of a new reserve to be called the Building
Faster Reserve, that any funds received from the Province of Ontario’s Building Faster
Fund be transferred to this reserve, and that these funds be used to invest in
community-enabling infrastructure;
8.That the Mayor be requested to consider the inclusion of funds in the 2025 Capital
Budget, to increase the proposed 2025 Asphalt Resurfacing Program amount from
$4,160,000 as indicated in the Capital Forecast to $5,200,000 with funding to be
determined by the Director, Finance & Treasurer;
9.That the Director, Finance & Treasurer be authorized, at his discretion, to undertake
the following transfers:
a)Any 2024 surplus Current Operating funds at year-end in excess of
approximately $125,000 be allocated in the following ratio: 25 percent to the
FIN 06-24
Subject: 2024 Financial Housekeeping Report
March 25, 2024
Page 3
Rate Stabilization Reserve (8007); 20 percent to the Facilities Reserve (8026); 5
percent to the Public Art Reserve (8038) and 50 percent to the City Share DC
Projects Reserve (8008);
b)Any surplus funds from the Emergency Operational Capital Needs Account
(11100.503510) to the Facilities Reserve (8026);
c)Any revenue from the sale of used vehicles (11100.406600) to the Vehicle
Replacement Reserve (8016);
d)Any surplus funds from Museum donations (10250.406500) and Artefact
Repairs & Maintenance Account (10250.502385) to the Museum Collection
Reserve (8033);
e)Any green energy rebates and revenue associated with the Claremont solar roof
rental project account (10325.404500.9480) and other incentives and rebates
account (10325.406551) to the Reserve for Sustainable Initiatives;
f)50 percent of revenues collected from Municipal Accommodation Tax (MAT)
(subject to Council’s approval of the tax) to the MAT Reserve (8042);
g)An amount up to $625,406 from the Casino Reserve to fund the net cost of the
Major Capital Facilities Cost Centre (10330);
h)Where the 2024 year-end balance of the WSIB Reserve is greater than $4.0
million, the excess funds will be transferred to the WSIB Excess Indemnity
Reserve Fund (8702);
i)Where the 2024 actual investment income (10600.406000) exceeds the budget
of $1,800,000, the excess funds will be transferred to the Balloon Payment
Reserve (8039) to minimize future debt costs;
j)Where the 2024 actual winter control costs exceed the budget, the deficit will be
funded by a transfer from the Winter Control Reserve;
k)Where the actual 2024 Property Tax Write-offs (account 11100.503000) exceed
the budget provision due to assessment appeals, the deficit will be funded by a
transfer from the Assessment Appeal Reserve (8002), and if this reserve is
depleted, then the shortfall will be funded from the Rate Stabilization Reserve
(8007);
l)Where the actual 2024 Payment-in-Lieu Education Share revenues are less
than the budget estimates, the deficit will be funded by a transfer from the Rate
Stabilization Reserve (8007);
FIN 06-24
Subject: 2024 Financial Housekeeping Report
March 25, 2024
Page 4
m)Any other budget transfers that may be required during the fiscal year which do
not change the overall approved property tax levy;
10.That Council approve Attachment 1, FIN 030 Financial Control Policy, with an effective
date of January 1, 2024;
11.That the Director, Finance & Treasurer be authorized to:
a)Undertake transactions in the spot or forward (12 months or less) currency
markets in order to effect United States dollar denominated expenditures in the
Current or Capital Budgets;
b)Sign leases or rental agreements (including summer rentals) on the City’s behalf
for the provision of vehicles or equipment required for temporary use during
periods of equipment breakdown or repair or during periods of increased need
(e.g. inclement weather);
c)Apply for all grants included in the 2024 Current Budget, 2024 Capital Budget,
and prior year’s capital projects that have not started, and that Council endorse
all future applications that meet senior government grant criteria and that staff
report back to Council at the next possible meeting regarding which grants staff
have applied to;
d)Make any changes or take any actions necessary, to ensure that the budget
accommodates any reallocation of 2024 current operating expenditures and
revenues that may be required to accommodate any labour relations
settlements, while maintaining the approved levy;
e)Adjust the 2024 final tax rates to address any revenue shortfall arising as a
result of a provincial tax policy change;
f)Initiate any additional assessment appeals necessary to protect the assessment
base of the City;
g)Apply any debt repayment, interest or financing provisions contained in the
annual Current Operating Budget not used in the current year’s payments
towards additional principal repayments, repayment of outstanding loans, debt
charges, to reduce debt or internal loans not issued, or transfer funds to the
balloon payment reserve;
h)Adjust the per kilometer travel expense reimbursement rate (last increased in
2023) with an effective date of May 1, 2024, from 0.65 cents per kilometre to
0.70 cents per kilometre for the first 5,000 kilometres and from 0.59 cents per
kilometre to 0.64 cents per kilometre for travel beyond 5,000 kilometres.
12.a)That Council approve the continuing engagement of Watson & Associates
Economists Ltd., to be used for fiscal impact studies and related works,
FIN 06-24
Subject: 2024 Financial Housekeeping Report
March 25, 2024
Page 5
Development Charge Background Study updates and/or amendments,
Community Benefit Charge Study updates and/or amendments and any other
DC or CBC related matters;
b)That Council approve the award of professional services in accordance with the
City’s Purchasing Policy Item 10.03 (c) to Watson & Associates Economists Ltd.
for the completion of a Development Charge Background Study and Community
Benefits Charge Study, in an amount not to exceed $90,000 (net HST);
13.a)That Council approve the continuing engagement of the firm PSD Citywide Inc.,
to be used for asset management consulting and other work in support of the
City’s compliance with Asset Management legislation;
b)That Council approve the award of professional services in accordance with the
City’s Purchasing Policy Item 10.03 (c) to PSD Citywide Inc. for the development
and delivery of a Proposed Level of Service Framework with Optimization
Scenarios, Citizen Engagement (Phases 1 and 2) and on-site meetings, in an
amount not to exceed $88,600 (net HST) and completion of stage three of the
City’s Asset Management Plan (as required by Ontario Regulation 588 (2021), in
an amount not to exceed $75,000 (net HST);
14. That Council approve the continuing engagement of the following firms: Nixon Poole
Lackie LLP, Municipal Tax Advisor Group and Municipal Tax Equity Consultants for
any studies related to reassessment or other property tax issues and to protect the
property tax base by defending assessment appeals through proactive assessment
base management;
15.That Council approve the following grants, which are exceptions to the Community
Grant policy, and that these grants be funded from the General Government Grants to
Organizations – Contingency account:
a)A grant to the Pickering Lawn Bowling Club, in the amount of $2,070, to be used
for the purchase of a video camera, club pins and 2 bowling assistance arms;
b)A grant to the Purpose Church, in the amount of $3,000, to be used to provide
equipment and supplies for youth programming in the Church’s youth centre;
and
c)A grant to The Redeemer Christian Church of God - Fountainhead Chapel, in
the amount of $4,500, to be used to purchase two desktop computers, software
and program supplies, to support a cloud computing and cybersecurity
certification program for individuals recovering from addiction.
16.That FIN 040 Community Grant Policy be amended by adding the following additional
provisions and the change to the policy be effective for the 2025 Community Grants
program;
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Subject: 2024 Financial Housekeeping Report
March 25, 2024
Page 6
a)That the grant application deadline date for the 2025 Community Grant Program
be September 27, 2024, to give community groups sufficient time to complete
their applications;
b)That grant requests for repair and maintenance activities on private property
shall be deemed ineligible;
c)That an application shall be deemed ineligible if submitted by, or on behalf of, a
youth and/or adult competitive sports team or league;
d)That grants provided for social, youth and seniors programs must be open to
participation by all Pickering residents, with programming to be conducted in
public or commercial spaces; and
e)That an organization may only submit one Community Grant Application each
year;
17.That Council approve Attachment 2, ADM 190 Council Compensation Policy with an
effective date of January 1, 2024; and
18.That the appropriate City of Pickering officials be authorized to take the necessary
actions as indicated in this report.
Executive Summary: The purpose of this report is to seek the authorizations and
directions necessary to implement the 2024 Financial Plans as reflected in the 2024 Current
and Capital Budgets. Under the Strong Mayors legislation, the budget was deemed adopted
on March 1, 2024. Many of the recommendations in this report are similar to the previous
Council budget reports.
Relationship to the Pickering Strategic Plan: The recommendations in this report
respond to the Pickering Strategic Plan Corporate Key to Deliver on Good Governance –
Open & Transparency.
Financial Implications: There are no additional costs associated with the adoption of the
recommendations. However, if the recommendations are approved by Council, this will
enhance the transparency and accountability of City operations from a financial lens for this
year and future years.
Discussion: The purpose of this report is to seek the authorizations and directions
necessary to implement the 2024 Current and Capital Budgets. Under the Strong Mayors
legislation, the budget was deemed adopted on March 1, 2024.
FIN 06-24 March 25, 2024
Subject: 2024 Financial Housekeeping Report Page 7
Explanation of Key Recommendations
Municipal Accommodation Tax (MAT) Reserve - Recommendation 2
At the March 27, 2023 Council meeting, Council approved Report CAO 06-23 (Resolution
124/23) that approved in principle the inclusion of the MAT revenues to the 2023 and
subsequent budget. At this time, $300,000 in revenues was an estimate. There is still
additional administrative work required before the program can be implemented, such as
Durham Region Council has to approve the establishment of a Municipal Service Corporation.
Implementation is expected in 2024, subject to Council approval.
Cancellation of Capital Projects – Recommendation 3
The capital projects listed in Recommendation 3 and in the table below, in many cases have
been re-budgeted in the 2024 Capital Budget or 2025 – 2033 Capital Forecast because the
original budget amount was too low (due to project delays or higher construction costs), or the
project was delayed to other external factors. In other cases, the project was deferred or not
required due to operational changes in the year.
Project
Number Description Reason for Closure
C10235.2203 O’Brien Hot Water Tank
Replacement
Not required - completed as an
emergency repair in 2022
C10240.2007 Purchase and Installation of
Electric Vehicle Charge Station
at the Civic Centre
TBA
C10300.1801 New Security Cameras Re-budgeted
C10315.2106 Front Plow & Wing Attachment
for Seaton Plow
Funds redirected to cover cost overage
in another project
C10320.2204 Vacuum Excavator with Trailer
Replacement
Re-budgeted
C10510.2301 Mid-Size SUV New Not required – Cherrywood
development did not proceed
C10510.2303 Various Construction Projects Not required – no projects initiated in
2023
C10515.1801 WO-2 Kingston Road – New
Sidewalk Installation
Re-budgeted
C10575.1806 RO-12 Kingston Road Sidwalk &
Streetlights
Re-budgeted
C10575.1905 BI-17 – Church Street –
Sidewalks & Streetlights
Re-budgeted
C10575.1906 TC-7 Kingston Road Sidewalks &
Streetlights
Re-budgeted
C10700.2306 Dispatch CAD Replacement Not required – operational changes in
Fire dispatch anticipated
C10700.2308 Fire Station #5 Land Purchase Re-budgeted
FIN 06-24 March 25, 2024
Subject: 2024 Financial Housekeeping Report Page 8
Project
Number Description Reason for Closure
C10900.2003 Central Library Outdoor Drop
Box
Not required – project deferred due to
Pickering City Centre timing changes
Municipal Space Use Study – Recommendation 4
An interim solution for office space is needed at City Hall. Demand for office space at City Hall
is currently 25 percent over capacity, based on existing available desks, and projected to
continue increasing. Previous long-term solutions to these pressures relied on timing and
implementation of the City Centre project. Council’s direction on capital project priorities in
January 2024 deferred facility-based elements of the City Centre project until 2028. As a
result, other options will be required to accommodate existing and future pressures until the
City Centre designs and timelines are revisited.
Funding was provided in the 2023 Current and Capital Budgets for leasehold improvements
and related capital costs to create a suitable municipal satellite office. Due to high market
rates and limited local availability, the lease of a smaller suite is being pursued to address the
most immediate needs. A longer-term solution will be required in order to meet the City’s
operational needs until at least 2030, and possibly beyond.
Existing use of offices throughout City Hall has changed over time, but the physical space and
essential infrastructure of the building has been largely unchanged since its original
construction in 1990. Office use and workspace needs have evolved considerably since then,
notably regarding use of digital technology and remote working options. Staff propose to
undertake a Space Utilization Study to determine how existing office space at City Hall could
be maximized and modified in order to avoid the cost of more leased satellite offices.
In the 2023 Capital Budget, $1.1 million was approved for project C10240.2307 - Satellite
Office Leasehold Improvements, anticipating the need for additional leased office space of
approximately 15,000 square feet. Staff are currently exploring an alternative location that is
approximately one third of that size, meaning that related leasehold improvement costs
should be lower than originally expected. In order to avoid additional pressures on the City’s
capital programs and budgets, staff recommend and request authorization to expand the
scope of project C10240.2307 to include consulting and related costs required for the Space
Utilization Study, in an amount not to exceed $300,000. Completion of this work would
provide recommended space utilization solutions at City Hall and related construction cost
projections, which could then be reflected in a future Capital Budgets for adoption.
Approval to Attend International Technology Conferences – Recommendations 6 a) &
b)
FIN 030 Finance Control Policy requires Council approval for all out of country conferences
and this policy applies to all City and Library staff.
It’s well known that technology advancements continues to grow at an almost exponential
pace. For the past decades, municipalities have been faced with the challenge as to how to
stay abreast of the changing technology and to translate these advancements into benefits
FIN 06-24 March 25, 2024
Subject: 2024 Financial Housekeeping Report Page 9
for the municipality. Today’s technology conferences consist of technology driven workshops
(classrooms) where new trends and advancement for computer systems, software and
security are presented and discussed.
Dell Canada has invited three Pickering staff from the Information Technology (IT) section to
attend the 2024 Dell World conference in Las Vegas. Dell Canada will cover the expenses at
the conference. These IT staff will attend various technology training sessions to obtain the
latest insights into cybersecurity, threat intelligence, data and network security, performance
optimization, system administration, cloud solutions, data management and Dell’s product
development roadmap, topics directly relevant to their job responsibilities. They will also have
the opportunity to network with industry peers and experts to foster collaboration,
partnerships and insights that can drive innovation.
The SAP Sapphire Conference is one of the premier events as it relates to enterprise
software and technology. Attending the SAP Sapphire Conference offers the Manager, ERP a
unique opportunity to stay updated on the latest trends and developments in SAP software. In
addition, the conference provides an opportunity for networking, connecting with municipal
peers and experts, and to gain the knowledge and resources needed to drive business
success. Several Ontario Municipalities that have implemented SAP sent delegations in the
past, and have commented on the benefits of attending this conference.
Building Faster Fund – Recommendation 7
On March 4, 2021, in the middle of the Treasurer’s 2021 budget presentation, the City
received the good news that it had received approximately $1.6 million in Provincial funding to
address COVID cost pressures. At that time, Council made the wise decision to put these
dollars in a reserve and these dollars were used to support the 2022 budget. During the most
recent March Break, the City received good news that it had been awarded $5.2 million from
the Building Faster Fund. Staff recommend that these funds similarly be put in a new reserve
to be called the Building Faster Reserve, and that these funds be used to invest in housing or
community-enabling infrastructure in accordance with the intent of the fund.
The Building Faster Fund is a three-year $1.2 billion provincial program designed to
encourage municipalities to address the housing supply crisis on Ontario. The fund makes
payments to municipalities that have reached at least 80 percent of their provincially assigned
housing target for the year. Funding is increased for municipalities that exceed their target.
In 2023, the City of Pickering built 1,502 new housing units, exceeding the 2023 target of 953
units by 58 percent. As a result, on March 13, 2024, the Ministry of Municipal Affairs &
Housing announced that the Province of Ontario will be providing the City of Pickering with
$5.2 million through the Building Faster Fund. This grant amount is an accomplishment that
reflects the hard work of many City Departments and the decisions of Council. There are
FIN 06-24
Subject: 2024 Financial Housekeeping Report
March 25, 2024
Page 10
other municipalities with larger populations that did not receive the same dollar amount as
Pickering.
Council Direction to Increase the 2025 Capital Budget Road Asphalt Resurfacing from
$4.160 million to $5.2 million - Recommendation 8
This year, the City received an unexpected grant of $5.2 million through the Building Faster
Fund. These dollars will be applied to “community-enabling infrastructure” (growth related
capital projects), that in will turn will reduce the financial pressure in funding other City
programs. In other words, this grant amount ($5.2 million) will likely be used to fund the City
Share of growth-related capital costs that in-turn will free up other dollars such as
Casino/reserves that can now be re-invested in the City’s road asphalt resurfacing program.
Asphalt Resurfacing Budget Comparison (Previous vs. Current Term)
In the previous term, the City budgeted a total of $9.451 million for road resurfacing, and with
the planned expenditure of $5.2 million in 2026, the City would have surpassed the previous
term’s total spending by 45.60 percent in three years.
Council Authority to Apply for All Possible Grants (Current & Capital) –
Recommendation 11 c)
There are two types of grants: regular and unpredictable grant opportunities. Every year, City
staff apply for numerous operating grants such as “Cultural Tourism Strategy” and
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
1st Yr.2nd. Yr.3th. Yr 4th. Yr.
Previous Term Current Term
FIN 06-24 March 25, 2024
Subject: 2024 Financial Housekeeping Report Page 11
“Community Museum Operating Grant”. These grants help fund, to some degree, the
operating costs related to their respective current budgets. The unpredictability of the grant
process usually applies to capital grants.
Historically, both senior levels of government (federal & provincial) announce capital grant
funding opportunities through their budget-day announcements, and the information included
in the “Budget Background Papers” is usually sparse regarding project criteria and application
timelines. After a budget-day announcement, you could be waiting several weeks and or
months before the formal application process is initiated by the senior government level.
Recommendation 11 c) is seeking Council authority and approval to submit a grant
application, where a senior level of government has announced a grant opportunity with a
short-term application deadline or due to a summer recess, thereby making the scheduling of
a Council meeting to seek Council’s endorsement of the project a significant challenge.
Included in the recommendation is the direction that staff report back to Council at the next
available Council meeting regarding the capital and/or current grant(s) that was applied for.
Update to the Development Chart Background Study and Community Benefit Charge
Study- Recommendation 12
The City of Pickering charges Development and Community Benefit fees to new/repurposed
development to fund the growth-related capital costs. Under the Development Charges Act,
1997, municipalities are required to prepare a Background study to establish the growth
forecast, capital costs and then calculate the charge that new development needs to pay to
fund the cost of this new infrastructure.
The City completed its last background studies in July 2022. Since then, several factors have
caused a significant increase in the capital costs required to be funded from Development
Charges and Community Benefit Charges:
•Council priorities have been clarified to include direction for Pickering Heritage &
Community Centre (PHCC) and the City Centre project, and new initiatives at Petticoat
Creek Conservation Area; and
•The pace of growth has accelerated beyond what was forecast in the study, moving the
timing for certain projects forward; and
•Inflationary pressures on major capital facilities projects have reached unprecedented
levels.
The legislation allows municipalities to increase the fees annually to reflect the impact of
inflation on project costs, using Statistics Canada’s Non-Residential Building Price Index
(NRCPI). Prior to 2020, the ten-year average of the NRCPI was 2.61 percent. However, since
COVID, construction prices have escalated at rates not seen in decades across the province.
In 2021 and 2022 the NRCPI averaged almost 15 percent per year.
FIN 06-24 March 25, 2024
Subject: 2024 Financial Housekeeping Report Page 12
Historical Non-Residential Building Construction Price Index
Even the allowable increases to the Development Charges fees do not compensate fully for
the inflationary pressures facing the City’s capital program. The tender results for PHCC
which saw the prices come in 158 percent over the initial budget included in the 2022
Development Charge Background Study. Similarly, the budget for Seaton Recreation
Complex & Library was increased by $129 million or 113 percent to reflect the current cost
environment. A scan of other municipalities has seen similar results for tenders on the
construction of recreation complexes throughout 2023.
Finance staff have undertaken preliminary work as it relates to DC fees and the estimated DC
debt charges for the Seaton Recreation Complex & Library. The preliminary results indicate
that our current fees are not sufficient or adequate to the meet the DC annual debt payment
obligations (principal and interest.). In other words, the City cannot entertain building the new
Seaton Recreation Complex & Library until the DC & CBC Study with the corresponding fee
increase is completed.
As noted in the FIN 01-24 report in January 2024, it has become increasingly clear that the
2022 Development Charge Background Study and 2022 Community Benefit Charge Study
are insufficient to meet the City’s current financial needs and the Director, Finance &
Treasurer recommends undertaking a new study to update the capital forecast, timing and
costs and adjust the development forecast to reflect the Region of Durham’s current growth
plan. $90,000 has been included in the 2024 Current Budget to fund this work.
Bill 23 More Homes Built Faster Act 2022, introduced the DC fee haircut or discount.
Currently, the DC fee discount is at 85 percent and will change in July of this year to 90
percent. When the new DC is adopted in April 2025, the DC fee discount will be reset to 80
percent. In other words, the developers will be paying 80 percent of the stated fees when the
new DC is adopted.
1.86%1.72%
3.70%2.75%
5.75%
2.91%2.19%
15.34%
14.54%
5.47%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Historical Non-Residential Building Construction
Price Index (NRCPI)
NRBCPI 10-year Average NRBCPI
FIN 06-24 March 25, 2024
Subject: 2024 Financial Housekeeping Report Page 13
Good News! – There Appears to be No Reassessment Planned for 2024
In 1998, the Province of Ontario introduced the new Ontario Fair Assessment System
(OFAS). The purpose of this new assessment system was to eliminate the historical
inconsistent measure of property values across the Province and to enhance the level of
fairness and equity into the assessment and property tax system. The new assessment
system uses a Province-wide valuation date to establish the theoretical value of each property
(structure/land) based on the principle that the value of the property is determined between a
willing buyer and seller from an arm’s length transaction perspective.
Last year (2023) was the eighth year of the Province’s four-year reassessment cycle. The
current value assessment is based on a valuation date of January 1, 2016. Assessment-
related increases are phased-in over four years, and assessment-related decreases are
implemented immediately. The City does not receive any additional revenue as a result of
reassessment. The corresponding property tax rates are adjusted for the increase in
reassessment values to create an overall property tax neutral position on a total property
class basis. Inevitably, when there is an overall change in assessment values, there is shifting
of the property tax burden among property classes, and as well among individual property
owners within each property class. Staff’s preliminary analysis indicates, that when the re-
assessment is implemented, that will probably be a shift in property tax responsibility (dollars)
from the commercial to the industrial property tax class due to the simple reason that cost of
residential housing has increased at a faster rate then commercial properties.
On the front page, on the bottom left corner, of the Final Residential Property Tax Bill is a
schedule entitled “Explanation of Tax changes from 2023 to 2024”. This schedule includes a
line called Tax change due to Reassessment and this line will be zero for this year.
Historically, the annual Provincial Budget has been the trigger for the announcement of the
next reassessment cycle. The most recent Provincial Budget was silent on the next
reassessment and therefore, it appears that there will not be a reassessment for 2024.
Debt Capacity and Annual Repayment Limit (ARL)
Managing the debt capacity of the City is essential due to the financial limitations imposed by
the Province through the ARL. Ontario Regulation 403/02 issued under the Municipal Act,
permits a maximum of 25 percent of net operating revenues to be used to fund principal and
interest charges on debt.
For Pickering, the net operating revenues consists of the following major revenue sources:
•Property tax revenue
•User fee and charges
•Fines, penalties & interest on taxes
•License fees, permit fees & rental income
•Gaming & casino revenues
On January 18, 2024, staff reported on the City’s Capital Project Priorities and the related
financial implications in report FIN 01-24. Council adopted the following capital priorities:
FIN 06-24
Subject: 2024 Financial Housekeeping Report
March 25, 2024
Page 14
1)Seaton Recreation Complex & Library with an estimated total project cost of $243.0 million
(design, construction, and furniture & fixtures).
2)Pickering City Centre Project Phase One (City Centre Park) with an estimated total project
cost of $15.0 million.
3)The PHCC with an estimated total project cost of $61.2 million.
The total gross cost of the three priorities is $319.2 million with the large percentage of the
cost being debt funded. These priorities, along the other capital projects, are reflected in the
2024 Capital Budget and 2025-2033 Capital Forecast.
The proper use of debt is an essential component of the City’s fiscal strategy. The use of debt
promotes intergenerational equity. By borrowing, Pickering can distribute the cost of the asset
over the lifetime of the asset. The ARL will be monitored and reported annually to ensure that
the City balances the requirements of the forecast capital program with the City’s financial
capacity, and maintain flexibility to address emerging priorities over time.
City’s Debt Capacity Measured Against the ARL Limit
Currently, interest rates are higher than in the recent past and the Bank of Canada has
indicated that it will continue holding the current rates until inflation decreases to its target rate
of two percent. As a result, the current financial debt strategy is to defer the issuance of debt
until the beginning of 2026 for major projects such as the PHCC, major fire vehicles,
0.00%
2.50%
5.00%
7.50%
10.00%
12.50%
15.00%
17.50%
20.00%
22.50%
25.00%
27.50%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
ARL City %Projection City Target
FIN 06-24 March 25, 2024
Subject: 2024 Financial Housekeeping Report Page 15
replacement of Bayly Street fire station and the new animal shelter. The financial impact of
the debt issuance delay is reflected in the above chart where there is a substantial upward
increase in the ARL line. However, it should be noted that this plan will be monitored and the
timing of the borrowing may change depending on actual project activity and cash flow
requirements. The current financial strategy for the new Seaton Recreation Complex & Library
is to issue the debt into two parts: 2027 and 2028.
High Level Financial Work Plan
Please find below a high level summary of the Finance Department key work plan objectives.
The summary below excludes the important day-to-day activities undertaken by all of the
Finance staff as it relates to accounting, payroll, property taxes and purchasing. The work
plan is to highlight major tasks to be undertaken or required to maintain the City’s financial
strategy.
FIN 06-24 March 25, 2024
Subject: 2024 Financial Housekeeping Report Page 16
Financial Workplan
(Present to July 1, 2025)
June
September
November 29
April 2025
June 2025
July 1 2025
Complete
ARO
2023
Fin.
Statements
2025
Current &
Capital
Budgets
DC & CBC
Studies
2024
Fin.
Statements
AM
O Reg.
588/17
FIN 06-24
Subject: 2024 Financial Housekeeping Report
March 25, 2024
Page 17
Asset Retirement Obligation (ARO)
As stated in FIN 04-24, there is a small City-wide team working with Deloitte consultants to
implement the requirements of Public Sector Accounting Standards 3280. The goal is to have
this project completed by June of this year.
2023 Financial Statements
The external auditors are starting their work in June with the target goal of having the financial
statements to be presented at the September Council meeting. In order to finalize the
financial statements, the ARO work has to be completed.
2025 Current & Capital Budget & 9 Year Forecast
The goal is to present the Mayor’s 2025 Budget by November 29, 2024. Similar to the 2024
budget, staff would deliver the budget binders to Councillors on November 29th and post the
complete document on the City’s website on the same day. If required, a possible meeting
day to discuss the 2025 budget could be December 16th, which is also the scheduled Council
meeting day for that month. The budget work plan is to start working on budgets in June, with
the Senior Staff Recommended Capital Budget Book to be posted on the City’s website in
early November to solicit the feedback from Pickering residents.
Completion of the Development Charges (DC) and Community Benefit Charges (CBC)
Studies
There is a need to revise the DC & CBC studies to address the growth related capital funding
shortfall mainly due to higher capital construction costs. As stated earlier in the report, this
work has to be completed before the City can consider approving the construction of the
Seaton Recreation Complex & Library. The work plan is attainable due to the fact the 2025
budget will be completed, providing staff the time to undertake this large and time consuming
process. In other words, to hit the April target date, we need to have the 2025 budget
completed early in the year. This project will commence in April of this year and the goal is to
try to achieve workload efficiencies where possible, by linking growth capital budget
development activity with the development of the 2025 Capital Budget and corresponding
forecast.
Asset Management Ont. Reg. 588/17
Ontario Regulation 588/17 establishes a deadline on or before July 1, 2026, for municipalities
to have an approved asset management plan for all municipal infrastructure assets. This
includes identifying proposed levels of service, outlining the activities needed to meet these
levels of service, and developing a strategy to fund these activities. There is a City-wide
management team already working on this project to meet the reporting deadline. One of the
requirements under this regulation is to have a 10 year capital forecast which the City would
have already completed as part of the 2025 Capital Budget.
FIN 06-24
Subject: 2024 Financial Housekeeping Report
March 25, 2024
Page 18
Attachments:
1.FIN 030 Financial Control Policy
2.ADM 190 Council Compensation Policy
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By:
Danna Munns James Halsall
Senior Budgets and Financial Analyst Division Head, Finance
Original Signed By:
Stan Karwowski
Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A.
Chief Administrative Officer
Policy
Procedure Title: Financial Control Policy Policy Number
FIN 030
Reference
Resolution # 56/07
Resolution #48/19
Resolution #240/20
Date Originated (m/d/y)
March 5, 2007
Date Revised (m/d/y)
March 25, 2019
February 24, 2020
March 25, 2024
Pages
13
Approval: Chief Administrative Officer Point of Contact
Director, Finance & Treasurer
Attachment 1 to Report FIN 06-24
Policy Statement and Objective
The City of Pickering staff is committed to providing leadership, quality customer service and
best value to the ratepayers of the City of Pickering through the provision of responsible and
prudent fiscal management.
We are committed to providing efficient and professional services as it relates to overall financial
management, strategic financial planning, budget, internal audit and accounting services,
financial reporting systems, and advice.
The objective of this Policy is to:
1.Ensure the financial wellbeing of the City of Pickering is in accordance with Council and
Corporate policies, Provincial and Federal Legislation and Regulations and professional
accounting principles.
2.Establish and maintain a system of internal controls, policies and procedures to ensure the
integrity and reliability of financial information.
3.Ensure that the financial assets of the City of Pickering are maximized and safeguarded at
all times.
4.Ensure the liabilities of the City of Pickering are minimized and controlled to the best ability
of staff.
5.Ensure the financial stability of the City including the management of financial risk.
6.Ensure the Council, the Chief Administrative Officer and staff have accurate, timely and
authoritative financial advice and information.
Policy Title: Financial Control Policy Page 2 of 14
Policy Number: FIN 030
Index
01 Definitions
02 Responsibilities
03 Authority
04 Purpose
05 Scope
06 Sole Authority
07 Budgets
08 Spending Authority
09 Commitments
10 Council Approval
11 Budget Variances
12 Temporary Financing
13 Treasurer’s Authority
14 Contracts and Agreements
15 Successive Agreements/Contracts
16 Notification to the Treasurer
17 Departmental Signing Authority
18 Insurance
19 Subsidy Applications
20 Bank Accounts and Investments
21 Petty Cash and Change Floats
22 Corporate and Purchasing Cards
Policy Title: Financial Control Policy Page 3 of 14
Policy Number: FIN 030
23 Employee Advances and Expense Reimbursements
24 Donations
25 Real Property
26 Fixed Assets
27 Inventories
28 Administrative Procedures
01 Definitions
01.01 Approval of Council - the funding approval authorized by the adoption of the
final current and capital budgets or the adoption of specific
recommendations/resolutions.
01.02 Capital Budget - an annual plan that sets forth each project or other capital
expenditure to be undertaken by the City and specifies the full resources
necessary to finance the projected expenditures.
01.03 Capital Expenditure - an expenditure in excess of a predetermined dollar limit
defined by the Treasurer, and which has a useful life extending beyond the
current year.
01.04 Change Float - a sum of money to be maintained and used to provide change
when cash is received from the public.
01.05 Chief Administrative Officer (CAO) - the senior appointed officer responsible
for the administrative operations of the City.
01.06 City - The Corporation of the City of Pickering.
01.07 Committee - a Committee of Council established under the City’s Procedural
By-Law No 3665/91, as amended.
01.08 Commitment - a contractual obligation for the purchase of goods, services, or
construction, including the execution of any document evidencing the
obligation.
01.09 Council - the elected officials of the City of Pickering.
01.10 Contingency Account - the money approved in the current budget to provide
for funding of one-time expenditures that were not known or anticipated at the
time the current budget was approved by Council.
Policy Title: Financial Control Policy Page 4 of 14
Policy Number: FIN 030
01.11 Current Budget - an annual financial plan providing for the operation of the
municipality for the current year incorporating both estimates of proposed
expenditures and revenues, including property taxes to be raised.
01.12 Department - an organizational unit of the City headed by a Department Head.
01.13 Departmental Budget - the current and capital budgets of the department as
approved by Council in adopting the estimates.
01.14 Disposal - the selling, trading, assignment, and/or scrapping of surplus assets.
01.15 Fixed Asset - vehicles, equipment, and computer hardware.
01.16 Grant - payments made to individuals or organizations, approved by
Council for a purpose related to the well-being of the community or its citizens.
01.17 Inventory - materials or items used or consumed in the provision of City
services.
01.18 Member – a Member of Council.
01.19 Petty Cash Fund - a sum of money to be maintained and used for
miscellaneous payment of money for the purchase of goods or services not
exceeding a specified amount.
01.20 Project - an undertaking, work, or scheme included in the capital budget.
01.21 Purchasing Card - a credit card used to purchase goods and/or services. The
use of the card is restricted to selected merchant types and may be subject
to spending and/or transaction limits.
01.22 Real Property - lands, buildings, tenements or any interest, estate or right or
easement affecting it.
01.23 Reserve Funds - a reserve fund differs from a reserve in that reserve fund
assets are segregated and restricted to meet the purpose of the reserve fund.
All interest earnings derived from such investments must form part of the
reserve fund.
01.24 Reserves - an allocation of accumulated net revenue. It has no reference to
any specific assets and does not require the physical segregation of money or
assets. Reserves are part of the revenue fund and therefore do not earn
interest on their own. Any earnings derived from the investment of reserves’
money are reported as revenue in the operating fund.
01.25 Treasurer - the Director, Finance and Treasurer of the City.
Policy Title: Financial Control Policy Page 5 of 14
Policy Number: FIN 030
02 Responsibilities
02.01 Council to:
(a) Approve and support this Policy.
02.02 Chief Administrative Officer to:
(a) Support the Financial Control Policy.
(b) Approve amendments for the consideration of Council.
02.03 Department/Division Heads/Managers/Supervisors to:
(a) Support the Financial Control Policy.
02.04 Director, Finance & Treasurer to:
(a) Support the Financial Control Policy.
(b) Maintain proper financial controls and procedure guidelines to ensure
accountability in the matters of finance and related administration.
(c) Review amendments to this Policy for the consideration of Council.
(d) Provide final interpretations and rulings in regard to the understanding
and application of this Policy.
(e) Approve procedures as prepared by the Manager, Accounting Services.
02.05 Manager, Accounting Services to:
(a) Prepare and maintain administrative procedures required to implement
the provisions of this Policy.
(b) Present such administrative procedures to the Director, Finance &
Treasurer for approval.
03 Authority
03.01 This Policy shall be administered by the Finance Department and the Treasurer
shall have the authority to interpret any provisions in this Policy necessary for
the good and efficient conduct and business of the City. Any changes shall be
approved by Council.
03.02 In all cases the Municipal Act, 2001, as amended, any Regulations passed
there under and any other Provincial or Federal Legislation or Regulations and
Policy Title: Financial Control Policy Page 6 of 14
Policy Number: FIN 030
professional accounting principles shall prevail as it may pertain to the duties
and responsibilities of the Treasurer and any financial matters.
04 Purpose
04.01 The collection of revenues, the commitment of funds and the payment of
expenditures of the City shall be carried out by the Treasurer in accordance with
the provisions of this Policy and any Acts, Regulations or directions of the
Province of Ontario or the Government of Canada, and generally accepted
accounting principles.
05 Scope
05.01 This Policy applies to all operations of the City of Pickering including any
Agencies, Boards and Commissions. It applies to the Library to the extent that it
does not conflict with the role of the Board or Chief Executive Officer under the
Public Libraries Act.
06 Sole Authority
06.01 Council has the sole authority to allocate funds for corporate expenditures and
projects and for approving corporate programs and objectives, unless otherwise
provided for in this Policy.
07 Budgets
07.01 Council, in adopting the total of all sums required during the year for the
operating purposes of the City shall, in accordance with the Municipal Act, 2001,
as amended, determine the current budget required to provide for the sums
required for every purpose and the sums required for the various categories.
07.02 Council, in adopting the capital budget, shall determine the sums required for
each capital project included in the capital budget and each sum provided
therefore shall be a capital account.
07.03 The Treasurer, after consultation with the appropriate Department Head, may
close any capital project account when the project is considered to be complete
and may, subject to the provisions of the Municipal Act, 2001, as amended,
apply any surplus funding to any other capital project at his/her discretion or
transfer surplus funds back to their respective source.
07.04 Departments shall be allowed to incur, before the adoption of the current budget for the year, interim spending for the sums required in that year for the period
from the 1st day of January to the date the estimates for that year are adopted, operating costs up to an amount of 50 percent of the prior year’s budget.
07.05 Prior to the approval of the annual budgets, expenditures for capital assets and projects shall be approved by the appropriate Department Head, the Treasurer,
Policy Title: Financial Control Policy Page 7 of 14
Policy Number: FIN 030
the Chief Administrative Officer, and Council prior to committing or expending
funds for the purchase or undertaking. These pre-budget approvals may be subject to the provisions for Emergency Purchases provided for in the
Purchasing By-law and Policy.
07.06 Budgets for Furniture Fixtures and Equipment or FFE shall include a breakdown
of expenditures to allow the Treasurer to fulfill the obligations of Financial
Control Policy FIN 030 and the Municipal Act subsection 286(1) (d).
07.07 The Treasurer shall prepare, as part of the annual budget, a summary listing of
all department requests for staff to attend international conferences and this
summary shall include the following information:
a. Cost (Conference, travel, accommodation & meals)
b. Attendee (number of participants and job titles)
c. Justification (Is there a similar conference in Canada and what are the
benefits to the Corporation?
d. If the above information is not ALLall available at the time the budget is
presented to Council, then the department requesting to attend the conference
shall prepare a report for Council approval before undertaking any financial
commitment for staff to attend the conference.
08 Spending Authority
08.01 The current and capital budgets approved by Council establish the spending authority for a program. Department Heads shall ensure that expenditures do
not exceed the approved program budget.
08.02 Spending or funds control is based on the total gross expenditures approved for
a program. Department Heads must address revenue shortfalls in this review of
expenditure levels. Unforeseen revenues are not to be expended or committed
without the approval of the Treasurer.
08.03 Department Heads shall report any anticipated significant over-expenditure or
revenue shortfall to the Treasurer as soon as such is known.
08.04 The Chief Administrative Officer, together with the Treasurer, may amend the
spending authority of any staff member.
08.05 That a capital project contingency guideline be established at 12 percent and
the contingency target of 12 percent excludes permits, and inspection services
materials and soils testing. Contingency requests above 12 percent requires an
explanation and/or justification.
Policy Title: Financial Control Policy Page 8 of 14
Policy Number: FIN 030
09 Commitments
09.01 No financial commitment shall be made, no debt shall be incurred, no lease or
other financial obligation entered into, no expenditure shall be made and no
monies shall be paid by, or on behalf of, the City except as delegated to the
Treasurer by Council in accordance with the provisions of this Policy or by
specific direction of Council.
10 Council Approval
10.01 No contract shall be entered into nor any expenditure or debt incurred involving
an amount exceeding that provided in the budget without the prior approval of
the Treasurer and Council, except as otherwise provided herein.
10.02 That Council approval be required for out of country conferences funded by the
City.
11 Budget Variances
11.01 The Chief Administrative Officer and the Treasurer may jointly approve
changes within an approved departmental Current Budget upon request of a
Department Head, provided that:
(a)such over expenditures do not exceed $50,000.00;
(b)all such over expenditures are offset by corresponding under expenditures
in other activities of the department so as to remain within the total budget
provision for the department; and,
(c)in no case shall the total budget for personnel costs for the department be
increased under this section without prior approval of the Chief
Administrative Officer in consultation with the Treasurer.
11.02 Where authority has been given in the annual Capital Budget for a particular
project, the Chief Administrative Officer, the appropriate Department Head(s)
and the Treasurer may jointly approve changes to such authorized amounts
provided that the total amount of the over expenditures:
(a)does not exceed the lesser of 10 percent of the approved capital
expenditure or $100,000.00; and,
(b)are offset by corresponding under expenditures in other approved capital
expenditures.
11.03 Financing of the over expenditure must have additional prior approval of the
Treasurer. Any change to debt financing and/or transfers from Reserve or
Reserve Funds must also have Council approval.
Policy Title: Financial Control Policy Page 9 of 14
Policy Number: FIN 030
11.04 The appropriate Department Head, Treasurer, and Chief Administrative Officer
may jointly approve unbudgeted capital expenditures of up to $35,000.00 as
long as appropriate funding (see 11.03) can be provided from other approved
expenditures.
11.05 Current and Capital Budget expenditures in excess of the limits established
under Section 11.01, 11.02, 11.03 and 11.04 shall require the approval of the
Treasurer, the Chief Administrative Officer, and Council.
12 Temporary Financing
12.01 Capital projects temporarily financed by a specific loan from an external source
shall be charged the actual cost of that loan.
13 Treasurer’s Authority
13.01 The Treasurer is responsible for maintaining accurate records and accounts of
the financial affairs of the City. This includes providing the Council with such
information as it requires or requests.
13.02 The Treasurer is responsible for the collection and receipt of all revenue and
any monies owing, and for depositing such funds in a financial institution. All
monies collected must be adequately safeguarded and promptly deposited into
a City bank account.
13.03 The Treasurer is authorized to extend payment terms and conditions on any
amounts due the City and outstanding where it is deemed necessary by the
Treasurer in order to collect such amounts.
13.04 Notwithstanding any other provision in this Policy or any other policy or By-law,
the Treasurer is authorized to pay the following, provided that funds are
available in the budgets as approved by Council:
(a) All salaries, wages and benefits due to any person in the employment of
the City.
(b) All retiring allowances and any past retirement benefits due to any
person previously in the employment of the City.
(c) All amounts due for goods and services supplied to the City.
(d) All taxes, fees and levies payable to the Federal, Provincial or other
Municipal Government, or to any other agency board.
(e) All payments of principal or interest on debentures, loans, or overdrafts,
including foreign exchange.
(f) All amounts due to the Region and School Boards of amounts raised for
them by the tax levy.
Policy Title: Financial Control Policy Page 10 of 14
Policy Number: FIN 030
(g) All advances to Agencies and Boards on account of the current budget
as authorized by Council for their purposes.
(h) All employee and employer pension contributions in respect of salaries
and wages, which are payable in respect of any duly registered pension
plan on behalf of the respective employee.
(i) All grants to any person or body as provided for in the current budget
without passing a by-law.
13.05 The Treasurer is authorized to write-off outstanding amounts owing to the City,
deemed as uncollectible, provided that such amount shall not exceed
$10,000.00 and is not an amount raised as taxation or deemed to be taxes.
Uncollectable amounts owing to the City in excess of $10,000.00 shall only be
written off with Council’s approval.
13.06 In extenuating circumstances, the Treasurer or designate may authorize the
cancellation of any or all penalties and interest on taxes.
13.07 The Treasurer has the authority to write off small balances up to $15.00 for
outstanding taxes for property tax roll maintenance.
13.08 The Treasurer has sole authority over the expenditure of funds from the
contingency account.
13.09 The Treasurer has authority, during any recess, break, or absence of Council,
to draw from Reserves or Reserve Funds provided that the transfer from
Reserves or Reserve Funds does not exceed the lesser of 5 percent of any
particular approved expenditure or $100,000.00 and a report respecting those
approvals is subsequently submitted to Council for information purposes.
13.10 The Treasurer is authorized to make draws from Reserve and Reserve Funds
for projects included in the Capital Budget up to the amount approved;
13.11 The Treasurer is authorized to undertake internal loans, where an internal loan
was the approved funding source in the Capital Budget;
13.12 The Treasurer is authorized to refinance any capital expenditures that fail to meet
the Canada Community Benefit Fund (previously called the Federal Gas Tax)
reporting criteria from other sources including transfers of funds from Reserves
and Reserve Funds;
13.13 The Treasurer is authorized to use any under-expenditures from projects funded
from Reserves or Reserve Funds to fund over-expenditures for approved
projects funded from the same source(s), and that any unfinanced capital may
be funded by a transfer from Reserves or Reserve Funds;
13.14 The Treasurer is authorized, at their discretion, to change the financing source
of any capital project, or portion thereof, in the Capital Budget to be financed
from the issuance of debt, to internal loans or transfer(s) from Reserves or
Policy Title: Financial Control Policy Page 11 of 14
Policy Number: FIN 030
Reserve Funds, or a combination thereof, where is it deemed to be in the best
interest of the municipality to do so;
13.15 The Treasurer is authorized to apply any excess funds obtained through the
issuance of debentures as provided for under Section 413 of the Municipal Act,
2001 as amended,
(i) to repay the principal or interest of the debentures; or
(ii) to repay any other capital expenditure of the municipality if the debt charges
for the other expenditure are or will be raised from the same class of ratepayers
from which the amounts required for the repayment of the debentures are raised.
13.16 The Treasurer be authorized to close any current and completed prior year’s
capital expenditure accounts, and to first apply any excess funding from property
taxes to any over expenditure in other accounts and to secondly transfer any
remaining excess funding back to the original sources of funds; and
13.17 That the Director, Finance & Treasurer be authorized to close any capital or
consulting account expenditure and corresponding revenue source that is over
two three years from the original purchase order date of issuance;
14 Contracts and Agreements
14.01 As a general rule, any contract or agreement may be entered into only with the
authorization of Council and the Mayor and City Clerk who possess the
authority to legally bind the City. The underlying approval process must be
followed before a document can be presented to the Mayor and Clerk for
signing.
14.02 Council may delegate authority, either complete or restricted, to persons to
approve a contract or expenditure.
14.03 Notwithstanding the foregoing, the Treasurer or his/her designate has the
authority to enter into agreements: for the provision of goods or services; for
expenditures or undertakings approved in the annual budgets; or, by specific
approval of Council.
14.04 No Committee of Council has the authority to commit the City or to approve or
expend funds.
15 Successive Agreements/Contracts
15.01 The Treasurer is authorized to pay for goods and services deemed essential to
the ongoing operations of the City for any period from the expiry of an
agreement or contract until a new agreement or contract is executed. Such
payments shall be at the same rates, and on the same basis as the last
previously executed agreement.
Policy Title: Financial Control Policy Page 12 of 14
Policy Number: FIN 030
16 Notification to the Treasurer
16.01 The Treasurer shall be notified of all agreements and contracts containing
financial terms or conditions, and all the original documents of insurance and
certificates thereof, bonds, letters of credit, and other securities for the due
performance thereof, executed by or on behalf of the City, shall be delivered to
the Treasurer.
17 Departmental Signing Authority
17.01 The Treasurer is responsible for maintaining signing authorities for the
provision of goods and services and the payment thereof.
17.02 Department Heads shall, in a form provided by the Treasurer, maintain a
current schedule specifying the delegation of financial signing authority within
their Department and the respective authority limits. The schedule shall be
signed by the respective Department Head and then by the Chief
Administrative Officer. The original schedule with specimen signatures of the
relevant staff of the department shall be forwarded to the Treasurer.
18 Insurance
18.01 The Treasurer has the authority to undertake the Risk Management Program
and for the purchase of all appropriate insurance coverages, adjusting claims,
and related services for the City, the Library and any other Boards.
19 Subsidy Applications
19.01 The Treasurer and the appropriate Department Head have the authority to
apply to the Provincial and Federal Governments for grants, subsidies, or any
other form of funding for the City’s programs and projects.
20 Bank Accounts and Investments
20.01 The Treasurer is authorized to open bank accounts in any Canadian bank as
required, and only Council is authorized to change signatories for these
accounts.
20.02 All monetary receipts and disbursements, other than petty cash, must be made
through a City bank account.
20.03 The Treasurer is authorized to invest the surplus funds of the municipality at
the maximum rate of return, at minimal risk, in compliance with current
Legislative requirements and the City’s Investment Policy.
Policy Title: Financial Control Policy Page 13 of 14
Policy Number: FIN 030
21 Petty Cash and Change Floats
21.01 The Treasurer has the authority to establish petty cash funds and change floats
for operational requirements in amounts and in locations the Treasurer deems
appropriate.
21.02 The Treasurer is authorized to reimburse a petty cash fund upon delivery of
original receipts and such other documentation as the Treasurer may require.
21.03 Petty cash funds and change floats shall only be used for City business and
there shall be no personal use of the monies.
22 Corporate and Purchasing Cards
22.01 Purchasing Corporate credit cards are provided to the Mayor and Chief
Administrative Officer to be used for City business and shall not be used for
expenses of a personal nature.
22.02 City staff (Departments & Library) or staff will be given a purchasing card where
the nature of their responsibilities requires such use. Purchasing card
assignments and limits are subject to the approval of the Treasurer.
22.03 City staff should use purchasing cards for transactions where they have been
determined by the Treasurer to be the most efficient way to handle payments.
22.04 Purchasing cards shall only be used for City business and shall not be used for
expenses of a personal nature.
22.05 Purchasing cards shall not be used to circumvent the City’s purchasing policy
and procedures.
23 Employee Advances and Expense Reimbursements
23.01 Employees may be advanced funds for City purposes when the nature and
approximate amount of the expense(s) has been approved beforehand.
23.02 Employees may be reimbursed for travel and other business related expenses
subject to the required approvals and within the limits of the approved current
budget.
24 Donations
24.01 Any donations received by the City shall be recorded as revenue in the fund to
which the expenditure relates. If none exists, the donation is to be recorded in
general revenue of the City.
24.02 All donations provided to the City of Pickering are to be forwarded to the
Treasurer for credit to the City’s accounts.
Policy Title: Financial Control Policy Page 14 of 14
Policy Number: FIN 030
24.03 Receipt for donation will not be prepared unless specifically requested by the
donor and must be issued by the Treasurer.
24.04 Donations in kind are not acceptable without prior approval of the Treasurer.
25 Real Property
25.01 All real property surplus to the requirements of the City shall be disposed of in
accordance with the policies adopted by Council from time to time.
25.02 All net proceeds from the sale of real property or any other assets of the City
shall be credited to the general revenue of the City, unless otherwise approved
by Council.
26 Fixed Assets
26.01 It is every employee and elected officials duty to ensure that City fixed assets
shall be safeguarded to the extent practical to prevent loss or theft.
26.02 The City’s fixed assets shall be recorded by the Treasurer and the records
updated for acquisitions and dispositions. The accuracy of these records
should be verified annually.
27 Inventories
27.01 City inventories shall be physically secured to prevent loss or theft.
27.02 Accurate records shall be maintained of all City inventories, which include
recording transfers in and out of inventory where practical. The accuracy of
these records should be verified annually.
28 Administrative Procedures
28.01 This Policy shall be read in conjunction with Purchasing Policy PUR 010 and
any other approved City Policies or administrative procedures.
28.02 This Policy shall be reviewed by the Treasurer every five years; however,
approved amendments can be made at any time.
Please refer to all associated Procedures and Standard Operating Procedures, if applicable, for
detailed processes regarding this Policy.
Attachment 2 to Report FIN 06-24
Policy
Policy Title: Council Compensation Policy Policy Number
ADM 190
Reference
Resolution #73/05
Resolution #12/07
Resolution #214/07
Resolution #54/11
Resolution #152/11
Resolution #48/15
Resolution #299/17
Resolution #48/19
Resolution #240/20
Resolution #546/21
Resolution #160/23
Date Originated (m/d/y)
May 2, 2005
Date Revised (m/d/y)
January 15, 2007
November 19, 2007
March 21, 2011
September 19, 2011
May 19, 2015
May 15, 2017
March 25, 2019
February 24, 2020
March 22, 2021
April 24, 2023
March 25, 2024
Pages
15
Approval: Chief Administrative Officer Point of Contact
Director, Corporate Services & City Solicitor
Director, Finance & Treasurer
Policy Objective
The objective of this Policy is to:
1.Provide consistent rules and guidelines for the Mayor and Members of Council with
respect to salary, expenses and communications of elected officials; and,
2.Provide guidelines to staff to ensure all expenses are submitted and approved in
accordance with the established parameters of the Policy.
Index
01 Definitions
02 Principles
03 Responsibilities
04 General
05 Accounting Procedures
06 Salary
Policy Title: Council Compensation
Policy
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Policy Number: ADM 190
07 Benefits
08 Vehicle Allowance
09 Professional and Business Development
10 Councillors Stationary and Office Supply Budget
11 Meals, Receptions, Promotions & Special/Community Events
12 Communications
13 Constituent Communications
14 Websites
15 In an Election Year
01 Definitions
01.01 Allowable or Eligible Expense - shall mean an expense that is provided
for in this Policy.
01.02 Cooperative Letter - shall mean a letter or other printed document that
contains information of interest to residents in more than one ward and
which shall be mailed or distributed beyond a ward boundary.
01.03 Councillor - shall mean all Members of Council, excluding the Mayor.
01.04 Ineligible Expense - shall mean an expense that is not provided for in this
Policy.
01.05 Members of Council - shall include the Mayor and all Members of Council.
01.06 Neighbourhood Letter - shall mean a document that is prepared on
letterhead and/or signed by a Member of Council and sent to a defined
neighbourhood or community of interest within the constituency of a
Member of Council.
01.07 Newsletter - shall mean a document that is printed on both sides and shall
contain information of interest to the constituents of a Member of Council.
01.08 Social Media – shall mean any social media platform used by a Member of
Council to communicate or share information with constituents.
01.09 Telecommunications Equipment - shall include all equipment capable of
transmitting over landlines and/or wireless modes.
01.10 Website - shall mean a site on the World Wide Web that contains
information of interest to the constituents of a Member of Council.
Policy Title: Council Compensation
Policy
Page 3 of 15
Policy Number: ADM 190
02 Principles
When interpreting this Policy, the following principles should be kept in mind:
02.01 Autonomy of Council - City Council, as the decision-making body of the
City, is separate and distinct from City administration.
02.02 Integrity of Council - The integrity of City Council as a whole and the
Office of the Members of Council must be protected. The interest of City
Council as a whole takes precedence over the personal interests of
individual Members of Council.
02.03 Accountability - Since Members of Council use public funds when they
perform their duties, the public expects public funds to be used prudently.
Members of Council are the stewards of City resources and are ultimately
accountable to the public and their constituents for the type and level of
expenses they incur. Members of Council expenses must be reasonable
and reflect what the public expects of an elected official.
02.04 Transparency - The public has a right to know how public funds allocated
to Members of Council are spent. The public’s right to Council expense
information must be balanced against the need to protect privacy and
personal information, and allow time for proper accounting and
reconciliation of expenses.
03 Responsibilities
03.01 Members of Council to:
a)adhere to and support the Council Compensation Policy;
b)consider amendments as presented by the Chief Administrative
Officer;
c)meet all financial, legal, and income tax obligations; and,
d)stay within budget guidelines and expenditure categories.
03.02 Chief Administrative Officer to:
a)support the Council Compensation Policy.
03.03 City Clerk to:
a)approve any expenditures in accordance with the Policy;
advise Members of Council of the status of their budgets;
b)advise Members of Council if any item appears to breach the Council
Compensation Policy; and,
Policy Title: Council Compensation
Policy
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Policy Number: ADM 190
c)make sure that supporting documentation is in place, and that
expenditures conform with the Policy.
04 General
04.01 This Policy shall be reviewed every four years prior to the budget
meetings that follow the general municipal election, or as directed by
Council.
04.02 When a vacancy occurs and is subsequently filled, or upon the
commencement of a new Term of Council and after the Inaugural
Meeting of Council has occurred, compensation, benefits and allowances
outlined in this Policy shall be pro-rated to the Term of Office for each
Member of Council.
04.03 Items purchased for and expense reimbursements by the City and
provided to a Member of Council will be charged to the Member’s budget.
04.04 Reimbursement or payment by the City will not be made if it is not
specifically provided for in this Policy.
04.05 No remaining current budget allocations or allowances can be carried
forward into future years unless otherwise provided for in this Policy.
04.06 Individual Members of Council shall not use City funds to make individual
grants or donations to organizations or persons for any form of
sponsorship or fundraising.
04.07 Members of Council will not be reimbursed for expenditures purchased
through the use of rewards or point programs or gift cards.
04.08 Detailed listings of Council expenses are prepared on a monthly basis for
each Member of Council and publicly disclosed on the City’s website as
soon as practicably possible.
04.09 Consistent with the Municipal Act and applicable laws, Councillors do not
have the legal authority to bind the Corporation.
04.10 Any expenses that violate, or are not in keeping with City Policies, will not
be reimbursed.
05 Accounting Procedures
05.01 Member of Council claims for expenses must follow basic accounting and
audit principles:
a)expenses must relate to the business of the City of Pickering;
b)complete backup of all documentation pertinent to the expenditure
Policy Title: Council Compensation
Policy
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Policy Number: ADM 190
must be attached to the expense reimbursement;
c) Members of Council must incur the expenses. Expenses incurred
by third parties cannot be claimed;
d) Members of Council must provide proper documentation, including
detailed receipts, invoices or e-bills, for all expense claims. Credit
card receipts or statements alone are not sufficient and will not be
accepted. In the case of any online purchases, a copy of the
confirmation is not enough for reimbursement, and the credit card
statement must also accompany the backup documentation;
e) invoices must include a description of the goods purchased or
services rendered, the cost, applicable taxes and HST Registration
Number;
f) original or digital signatures are required on all invoices;
g) expenses must be submitted for reimbursement within 60 days of the
expenditure; and,
h) Members of Council who charge for goods against the current year
must have received the goods and or services from the vendor before
December 31st of the year.
05.02 Reimbursement of expenses must be completed through the City’s
automated Travel and Expense process within the City’s portal.
Supporting documentation needs to provided for each expense.
05.03 External Service Providers - payment shall be made directly by the City to
the service provider upon submission of an original detailed invoice. An
invoice for external services must contain, the business name, address,
date and additional details of services provided such as itemizing hours by
day, HST business registration number and description of work provided.
All invoices require sign off by the Councillor to indicate that services were
received prior to authorization, and before payment can be processed.
06 Salary
06.01 The remuneration payable to the Mayor shall be:
a) $120,703.00 per annum effective January 1, 2023; and,
b) Thereafter, the annual salary of the Mayor shall be increased at the
higher rate of either the same rate/percentage provided to those
employees covered by the Collective Agreement for CUPE Local 129
on April 1st of the immediate preceding year or the salary increase
percentage given to the Chief Administrative Officer in the prior year.
Policy Title: Council Compensation
Policy
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Policy Number: ADM 190
06.02 The remuneration payable to a Councillor shall be:
a) $50,293.00 per annum effective January 1, 2023;
b) Thereafter, the annual salary of a Councillor shall be increased at the
higher rate of either same rate/percentage provided to those
employees covered by the Collective Agreement for CUPE Local 129
on April 1st of the immediate preceding year or the salary increase
percentage given to the Chief Administrative Officer in the prior year ;
c) a Councillor shall be paid a per diem rate of 1.0 percent of their
annual salary for a total of 10 days for attending a full day meeting,
workshop, seminar or convention; and,
d) per diem payments payable to Councillors shall be paid monthly. Per
diem payments shall cease on the last day that the Councillors remain
in office and shall be pro-rated accordingly.
06.03 Remuneration payable to Members of Council shall be based on an
annual rate and paid bi-weekly. Remuneration to Members of Council
shall cease on the last day that the Member remains on the Council of the
City of Pickering.
07 Benefits:
07.01 Health Plan
a) An Extended Health Plan shall be available to all Members of Council
and their families;
b) Members shall have access to a health care spending account for
$7,500 per year with no carry over provision or unused amount paid
out;
c) For a Member of Council who has completed more than 8 years of
continuous service and ceases to be a Member for the reasons set
out in Section 07.04.a), the Corporation shall pay 100 percent of the
premium cost of the Extended Health, Dental and Vision Care Benefit
Plans, including health care spending account referenced in 7.01b),
for the number of years of service or until the Member attains the age
of 85;
d) Following a Council Member’s death while in service, the Corporation
shall continue to pay 100 percent of the premium costs of the
Extended Health, Dental and Vision Care Benefit Plans in respect of a
Member’s surviving spouse and dependents for up to 24 calendar
months.
07.02 Current sitting Members of Council, shall be provided a Term Life
Policy Title: Council Compensation
Policy
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Policy Number: ADM 190
Insurance Policy paid to the designated beneficiary as follows:
a)Mayor $200,000.00;
b)Councillor $100,000.00;
c)accidental death and dismemberment insurance coverage (ceases at
age 70); and,
d)Members of Council will be eligible for an additional $100,000.00 (after tax)
payment to their designated beneficiary at the time of their death.
07.03 A Member of Council may maintain a Registered Retirement Savings
Plan (RRSP), either own or spousal as permitted, under current Federal
legislation to which the Corporation shall contribute a maximum of 13
percent of the Member’s earned salary each year;
a)To have the City make the contribution or reimburse for the
contribution, the Member of Council must provide:
i)written confirmation that a member has sufficient contribution
room, as provided by the Canada Revenue Agency on their notice
of assessment, to accommodate the City’s contribution, shall be
provided to the Treasurer no later than December 31st in any given
year and the City’s contribution shall be made directly to the RRSP
no later than January 31st of the next calendar year;
OR
ii)evidence of a contribution by a Member towards an RRSP shall be
provided to the Treasurer no later than December 31st in any given
year. The member will then be reimbursed for the contribution, to
a maximum of 13 percent of the Member’s earned salary, no later
than January 31st of the next calendar year.
b)For the purpose of calculating the 13 percent RRSP contribution
amount, the word “salary” shall mean the annual salary plus the per
diem rate, pro-rated for a Member not holding office for an entire
calendar year, of the Mayor and Councillors and it excludes all
taxable benefits and allowances.
c)The contribution to an RRSP is a taxable benefit regardless of
whether it is paid to the Member of Council or the financial institution.
d)The City shall make its contribution only in the month of January of
the next calendar year regardless of when the Member of Council
made a contribution, except when a Member of Council ceases to
hold office during the year, in which case a whole or partial
contribution will be made in that year.
e)An elected official has the option to have the City contribute directly to
a Tax Free Savings Account (TFSA), rather than an RRSP. The
contribution amount would be net of taxes but all other requirements,
noted above would apply.
Policy Title: Council Compensation
Policy
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Policy Number: ADM 190
07.04 a) A Member of Council, who has completed a term, may, upon
written application to the Treasurer by the Member, receive
severance remuneration upon ceasing to be a Member by reason of:
i) election defeat;
ii) resignation;
b) election to another government body;No Member of Council
shall be entitled to receive severance remuneration if he or
she ceases to be a Member by reason of resignation which is
a result of or given in anticipation of:
i) removal from office by judicial process; or,
ii) notwithstanding the above, disqualification under or by operation
of any Act of the Parliament of Canada or the Legislature of the
Province of Ontario.
c) Severance remuneration shall be equal to: one month of salary for
the Mayor or one month of salary that includes the per diem for
Councillors, times the number of years of consecutive, uninterrupted
full service of the Member, to a maximum amount payable of 36
months remuneration. Severance remuneration shall be calculated
from the day the Member took office to the last day that the Member
ceases to hold office.
d) A written application for severance remuneration must be received by
the Treasurer within 6 calendar months of a Member of Council
ceasing to be a Member; otherwise any entitlement to severance
remuneration shall be forfeited. Upon approval of the application by
the Treasurer, a payment arrangement shall be agreed to that does
not extend beyond four years. Interest is not earned on the
severance remuneration if a payment arrangement is agreed on.
08 Vehicle Allowance
08.01 A vehicle allowance is provided for in the annual Current Budget on a
monthly basis to each Member of Council.
a) The vehicle allowance shall be deemed to provide for all travel and
travel-related expenses less than 50 km one way from the Civic
Complex and shall include but not be limited to fuel, parking, highway
tolls, taxi fares, public transportation fares and valet services.
b) Travel of more than 50 km one way from the Civic Complex shall be
paid for the outgoing and return trip in excess of 100 kilometres at the
per kilometre rate of reimbursement approved by Council or economy
class return air fare between Toronto and the destination, whichever
is the lesser.
09 Professional and Business Development
Policy Title: Council Compensation
Policy
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Policy Number: ADM 190
09.01 A budget of $16,000 per term for each Member of Council shall be
provided. This will be an allocation of approximately $4,000 per Member
of Council in each annual budget for professional and business
development related to City business, however, a Member of Council
may use funds from future years as long as the budget does not exceed
$16,000 for the Term of Council. Any spending above the $16,000
allocated for the term must be paid back by the Member of Council within
one month.
09.02 Members of Council may attend the following programs that are relevant
to a Member of Council’s role/duties and relates to City business:
a) conferences and seminars;
b) professional education and development programs;
c) skills development programs;
d) research/study trips; and,
e) other City business or other travel requested by City Council.
09.03 Expenses shall include actual accommodation costs, registration costs,
travel if applicable, hotel internet/telephone charges and meals if not
provided by conference event and where such expenses are not
otherwise claimed or paid for by another person or body.
09.04 Accommodation expenses shall be at the event headquarters and if not
available, then at the nearest suitable hotel, motel, etc. and at a single
occupancy room rate. All expenses over a single occupancy room rate
will be the responsibility of the Member of Council.
09.05 Travel necessary for professional and business development in excess of
50 kilometres one way, 100 kilometres return from the Civic Complex,
shall be paid at the per kilometre rate of reimbursement approved in the
Current Budget or economy class return air fare between Toronto and
destination whichever is the lesser. Economy plus standard is permitted
for air travel over five hours. Other travel related expenses such as
parking, vehicle rentals, taxi fares, public transportation fares and
highway tolls incurred for travel beyond 50 kilometres one way, 100
kilometres return shall also be reimbursed upon presentation of receipts.
09.06 Lost receipts will not be reimbursed.
09.07 Councillors must have Council approval in order for expenses to be
reimbursed for any event outside of North America unless the Mayor has
delegated his authority under section 226.1 of the Municipal Act to
represent the City in his place to the Deputy Mayor or a Councillor, if the
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Policy
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Deputy Mayor cannot attend.
10 Councillors Economic Development Initiatives
10.01 Councillors will be provided an annual budget, in the amount of
$710,000 per year in an account entitled Councillors Economic
Initiatives (with no carryover provision) to undertake key economic
initiatives for business attraction that includes business development
and trade shows and the costs related to this activity including items
such as travel, accommodation, food and registration fees shall be
charged to this account.
10.02 Council approval is not required for international air travel,
accommodations, registration fees and meals for Councillors economic
development initiatives.
11 Councillors Stationery and Office Supply Budget
11.01 An annual budget of $750.00 is provided for each Councillor for office
supplies used for City business such as; personalized letterhead,
business cards, toner cartridges, Commissioner Stamps,
publications/books relating to City business.
11.02 All letterhead and business cards must comply with the City’s template
guidelines.
12 Meals, Receptions, Promotions & Special/Community Events
12.01 An annual budget of $5,000.00 is provided for each Councillor for meals,
individual ads, receptions, promotions and special events where the
Member of Council is required to attend in an official capacity and the
event relates to City/constituent business.
12.02 Where an invitation is extended to a Member of Council to attend a
function in his or her capacity as an elected official, the Member may
request reimbursement for one additional ticket for a spouse or guest,
where appropriate and reasonable.
12.03 Individual ads (i.e. newspaper ads, business card ads) must be placed in
news or advertising media circulated within the City of Pickering. Copies
of print ads must be provided with the invoice.
12.0412.03 Members of Council may hold Ward Town Hall Meetings with their
constituents and may use City Facilities for this purpose at no charge.
Facility availability is based on current City programming needs that may
already be scheduled and an alternative space may be offered to the
Member of Council if required. Town Hall Meetings shall be limited to one
per month and where possible should be combined with the other
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Policy
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Member of Council elected to that Ward. A Council Member’s request for
staff participation at a Town Hall Meeting shall be directed to the CAO a
minimum of 2 weeks in advance of the Town Hall and is subject to CAO
pre-approval.
13 Meal Reimbursement
13.01 Reimbursement shall be provided to Members of Council for the cost of
meals attended for the purpose of discussing matters of City business as
follows:
a) reimbursement shall only be provided for reasonable food and
alcohol expenses upon submission of the original restaurant bill
providing details of the purchase and the HST number. The
attendees and the purpose of the meeting is to be noted on the
reverse side of the bill;
b) reimbursement for alcohol alone is not allowed; and,
c) Members of Council will not be reimbursed for any food, drink or
alcohol for any social meal/event when taking City/Regional staff or
Advisory Committee/Board members out (i.e. lunches, retirement
functions, holiday lunches).
14 Communications
14.01 A Capital Budget of $15,000 per term, per Member of Council, shall be
provided for the acquisition of computer hardware/software and ,
television (to be only located in the City provided office),
telecommunications equipment. and home security system (for
primary CityPickering residence)
a) Expenditures of this allocation shall only be made in the first 40
months of office following a general election.
b) No replacement computer hardware/software, telecommunications
equipment or smart phones shall be purchased or leased for
Members of Council unless it is lost or stolen, or no longer operates
and cannot be repaired to its initial operating specifications. The old
equipment must be returned, and/or affidavit that the equipment has
been lost or stolen must be submitted. Any replacement equipment
purchased under this Section will be charged to the Councillor’s
budget.
c) Following a general municipal election, by-election or appointment,
the new Member(s) of Council shall be contacted by staff to
determine their needs. Members of Council may choose to be
supplied with equipment recommended by City staff or they may
choose to be supplied with equipment of their choice. The Division
Head, Information Technology must be consulted to verify
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Policy
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compatibility and to clarify IT support opportunities before purchase.
At the point of delivery of the equipment, Members of Council shall
be required to sign a Home Equipment Agreement which shall set
out the equipment that has been supplied to the Member and the
conditions under which it has been supplied.
d) Expenditure for Television to be capped at $1,000.00 and to include
full installation and all applicable taxes.
e) Expenditure for Hhome security hardware costssystem to be
capped at $5,000.00 and to include full installation and all
applicable taxes.
14.02 Returning of equipment by Members of Council:
a) the equipment issued to Members of Council remains the property of
the City and shall be returned on completion of the Term of Office;
b) every Member of Council who does not continue to hold municipal
office shall return all computer hardware/software
telecommunications equipment and any other equipment purchased
or leased on their behalf to the City by November 30th following a
general municipal election or within 21 days of ceasing to hold
office;
c) notwithstanding section 14.02 b), an outgoing Member may request
the purchase of such equipment. The Treasurer shall consider each
request when submitted, taking into consideration the age of the
equipment, its market value as determined by the City’s Information
Technology Division and any licensed software on the equipment;
d) a Member of Council will be provided with the opportunity to
purchase City owned equipment if he or she:
i) has held office for at least one full term;
ii) is not standing for re-election; or
iii) has been unsuccessful in seeking re-election;
e) the opportunity to purchase will not be available to a Member of
Council who is disqualified or dismissed from holding office; and,
f) in the event the above-noted items are not returned or purchased by
the said date, the matter shall be referred to the Director, Corporate
Services & City Solicitor to pursue recovery.
14.03 The City will reimburse each Member of Council for phone/internet
usageand home security monitoring as follows:
a) smart phone plans, iPad plans,
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Policy
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15Policy Number: ADM 190
b)A budget of $1,800 per year will be provided for internet usage
costs on a reimbursement basis only;
c)Members of Council who are planning to travel out-of-province or
out-of-country must contact the City’s IT staff or the provider to
determine the appropriate voice and data roaming plan. Roaming
charges will not be reimbursed by the City for usage costs for
electronic devices that are accidentally turned on or left on.; and
d)The City will reimburse costs to Members of Council for a home
security monitoring system only on a monthly basis and the contract
shall be in the name of the Member of Council and the contract shall
not exceed the term of office.
15 Constituent Communications
It is recognized that there are many communications media available to Members of
Council to communicate with their constituents, including newsletters,
neighbourhood letters, cooperative letters, websites, town hall meetings and social
media accounts.
15.01 An annual budget of $16,000 for the first, second and third
calendar years and an annual budget of $4,000 for the fourth year
for website expenditures will be provided to each Councillor for
constituent communications. The City shall cover the cost of
preparing, printing and mailing newsletters, neighbourhood letters
and cooperative letters, as well as the cost of creating and
maintaining a website and/or social media account as follows:
a)a newsletter shall not be mailed or otherwise distributed beyond
the boundaries of the constituency of a Member of Council except
where postal walks cross beyond the boundaries of his/her ward;
b)in instances where Members of Council are assigned or appointed
to additional duties, or where it is determined that the same
information is being sent out by another Member, and combining
information is fiscally responsible, cross-ward boundary
communication exceptions may be permitted at the discretion of
the City Clerk;
c)a newsletter, neighbourhood letter, cooperative letter, City-funded
website or other communications media shall not contain
information that would promote any candidate in an election;
d)a newsletter, neighbourhood letter, cooperative letter, City-funded
website or other communications media shall not contain
advertising that would promote a product or service of a company,
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Policy
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organization or individual;
e) a Member of Council shall only be reimbursed for communication
expenses relating to City business incurred through media that
have general circulation in the City of Pickering, such as a
newspaper, radio or television station; and,
f)e) in the fourth year of a term of office, all communications must be
delivered to the mailing address by April 30th in order to be
reimbursed by the City.
f) Any costs associated with video production or related costs will
not be covered;
16 Websites
The City will reimburse Members of Council for the cost associated with
development, licensing and maintaining a website as follows:
16.01 a link to the Councillor’s City-funded constituent website will only be
provided from the City of Pickering website under the Councillor’s profile
link;
16.02 Members of Council cannot convert an existing Councillor’s City-funded
constituent website to an election campaign website;
16.03 the City will reimburse for the purchase of one domain name registration,
web hosting fees and website maintenance fees;
16.04 Members of Council’s City-funded constituent websites will be hosted
outside of the City’s internet URL address and are entirely the
responsibility of Members of Council;
16.05 City staff cannot provide any advice related to these external sites,
including wording for disclaimers;
16.06 the City recommends that Members of Council choose a web-hosting
company operating in Canada to reduce the risk of breaching the privacy
of constituents under conditions of the United States Patriot Act;
16.07 use of the City logo and symbols must comply with all applicable City
policies;
16.08 Members of Council’s City-funded constituent websites cannot advocate
for a political party, other levels of government, for-profit organizations or
individuals not related to the business of the City, or for candidates in
any municipal, provincial, federal election or by-election, or promote
consent or rejection of a question on a ballot that has been submitted to
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15Policy Number: ADM 190
electors; and,
16.09 Members of Council’s City-funded constituent websites cannot contain
advertising that would promote a product or service of any company,
organization or individual.
16.10 Members of Council’s City-funded members constituent websites
cannot intake or collect funds from any company, organization or
individual.
17 In an Election Year
17.01 The Municipal Elections Act, 1996 states that the City cannot make a
contribution to any candidate or their campaign in a municipal election.
Therefore, special conditions for expense reimbursement for Members
of Council apply during an election year.
17.02 In an election year the following conditions shall apply effective May 1st:
a)no Member of Council shall use the facilities, equipment, supplies,
services, staff or other resources of the municipality for any
election campaign or campaign-related activities;
b)no Member of Council shall undertake any campaign-related
activities on any municipal property;
c)no mailing or distribution of constituent communications where the
costs are borne by the City;
d)no mailing or distribution of generic neighbourhood letters or
cooperative letters shall occur where the costs are borne by the
City;
e)no individual advertising shall occur where the costs are borne by
the City (i.e. newspaper ads, business card ads); and,
f)e) no community events can be organized by a Member of Council
where the costs are borne by the City (i.e. Ward Town Hall
Meetings, safety meetings, government info meetings, etc.).
Please refer to all associated Procedures and Standard Operating Procedures, if
applicable, for detailed processes regarding this Policy.