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HomeMy WebLinkAboutCS 11/01 - ~ REPORT TO COUNCIL FROM: Gillis A. Paterson Director, Corporate Services & Treasurer DATE: March 26,2001 REPORT NUMBER: CS 11-01 SUBJECT: Youth Partnership Initiative RECOMMENDATION: It is recommended that Report CS 11-01 of the Director, Corporate Services & Treasurer be received and that: 1. a grant be provided to those organizations that provide free youth programs have a dedicated center with dedicated space and the grant be provided to those organizations that are registered charitable organizations that qualify under subsection 248(1) of the Income Tax Act (Canada) with eligibility to be annually corifirmed by application; 2. a maximum grant in the amount of $5,000 per year be provided and the amount of the grant be reduced by the amount an organization may receive from the Charity Property Tax Rebate Program; - 3. that this grant be charged to Account 2195 (Grants to Organizations and Individuals); 4. that a grant be provided to the Edge Youth Centre and Family & Youth Action Centre as these two organizations meet the criteria as established under Recommendation# 1; 5. that the Region of Durham be requested to offer a grant (in addition to the Charity Property Tax Rebate Program) that is at least equal to the City of Pickering's donation and that this grant be made available to similar organizations across the Region; 6. that this Recommendation be circulated to Roger Anderson, Regional Chairman, Durham Region; and, 7. the appropriate staff of the City of Pickering be given the authority to give effect thereto. ORIGIN: Director, Corporate Services & Treasurer AUTHORITY: Municipal Act, R.S.O. 1990, as amended - Report to Council CS 11-01 Date: March 26,2001 Subject: Youth Partnership Initiative Page 2 - FINANCIAL IMPLICATIONS: Not Applicable EXECUTIVE SUMMARY: At the January 15th, 2001, Council meeting, Council passed Resolution#3/0 1 (b) asking staff to prepare a report on providing assistance to youth organization. The above grant is a component of the City's Youth Partnership Initiative Program. BACKGROUND: At its meeting of January 15th, 2001, Council passed Resolution#3/0 1 (b) as follows: "That the following three paragraphs be referred to staff for a report to be prepared and brought back to Council; said report to include the implications respecting donations: THAT the Corporation of the City of Pickering give a donation to any not-for-profit organization in the city that rents space for the expressed purpose of assisting youth an amount equal to the city portion of their tax bill; and - THAT the Region of Durham be requested to follow the City of Pickering's lead and offer a donation equal to the regional portion of the tax bill for similar organizations across the Region; and THAT this motion be circulated to Roger Anderson, Regional Chairman, Durham Region." Staff had several meetings to discuss the administration and design of the grant funding within the context of Resolution#3/01(b). The discussion raised many valid and complex issues regarding administration of a youth grant funding program, that if implemented, would have made the program too complex and unworkable. It was therefore, decided that a simpler approach regarding grant funding would be used to assist the youth organizations. The grant recommended in the report is indirectly linked to the Charity Property Tax Rebate program that has been in existence since 1998. Currently, through the Municipal Act and most recently as amended by Bill 140 "Continued Protection for Property Taxpayers Act," the Charity Property Tax Rebate Program provides a rebate of 40% of the property taxes paid by registered charities that occupy commercial or industrial space. The loss in tax revenue associated with the 40% rebate is funded by all property tax classes in the same proportion of the tax rate. In other words, Pickering's cost of the rebate under the 2000 commercial tax class is 14 cents for every dollar granted. Recommendation#2 provides these organizations with a guaranteed level of funding per year. There is also a possibility that the Region of Durham may also provide some additional funding. The foregoing was developed in conjunction with the Director, Operations & Emergency Services and the Clerk. - Report to Council CS 11-01 Subject: Youth Partnership Initiative Date: March 26, 2001 ATTACHMENTS: Page 3 - Not Applicable Prepared By: Approved! Endorsed By: 7 ~ ----, Stan Karwowski, Manager, Financial Services GAP:vw Copy: Director, Operations & Emergency Services City Clerk Recommended for the consideration of Pickering City Council Thomas J. Quinn, Chief Administrative Officer - ~ 5fX?*S- ~ Gillis A. Paterson, Director, Corporate Services & Treasurer =