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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; FIN 06-24 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 Page 2 of 15 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 Page 4 of 15 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 Page 5 of 15 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 Page 6 of 15 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 Page 7 of 15 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 Page 8 of 15 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 Page 9 of 15 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 Policy Title: Council Compensation Policy Page 10 of 15Policy Number: ADM 190 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 Policy Title: Council Compensation Policy Page 11 of 15 Policy Number: ADM 190 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 Policy Title: Council Compensation Policy Page 12 of 15 Policy Number: ADM 190 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, Policy Title: Council Compensation Policy Page 13 of 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, Policy Title: Council Compensation Policy Page 14 of 15 Policy Number: ADM 190 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 Policy Title: Council Compensation Policy Page 15 of 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.