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