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MINUTES - General Committee - 20011120 TOWN OF AURORA GENERAL COMMITTEE MEETING REPORT NO. 17-01 Council Chambers Aurora Town Hall Tuesday, November 20, 2001 ATTENDANCE COMMITTEE MEMBERS Councillor MacEachern in the Chair, Mayor Jones, Councillors Griffith, Pedersen, Timpson, Vrancic, Wallace and West. Councillor Kean was absent. OTHER ATTENDEES Director of Corporate Services/ Town Clerk, Director of Public Works/Acting Fire Chief, Treasurer, Director of Planning, Director of Building, Director of Leisure Services and Council/ Committee Secretary. Councillor MacEachern called the meeting to order at 7:00 p.m. I DECLARATIONS OF PECUNIARY INTEREST There were no declarations of pecuniary interest under the Municipal Conflict of Interest Act. II APPROVAL OF AGENDA Moved by Councillor West Seconded by Councillor Timpson THAT the content of the Agenda as circulated by the Corporate Services Department be approved as presented. CARRIED III DETERMINATION OF ITEMS REQUIRING SEPARATE DISCUSSION Items 1, 2 and 3 were identified for discussion. IV ADOPTION OF ITEMS NOT REQUIRING SEPARATE DISCUSSION None - All items were identified for discussion. V DELEGATIONS None General Committee Meeting No. 17-01 Page 2 Tuesday, November 20, 2001 VI CONSIDERATION OF ITEMS REQUIRING SEPARATE DISCUSSION 1. TR01-036 - 2002 Water, Sanitary and Storm Sewer Rate and Reserve Review and Presentation from Allan Evelyn, Treasurer The Treasurer gave an overall description of report TR01-036 - 2002 Water, Sanitary and Storm Sewer Rate and Reserve Review. The Treasurer explained the Water and Sewer Lateral Program and addressed concerns regarding the rates and their appropriateness. The Treasurer stated that it is our responsibility to provide adequate services to maintain a commitment to a comprehensive life cycle infrastructure, maintenance and rehabilitation program. As a result of undertaking to rehabilitate this infrastructure, immediate demands would be placed upon the current water and sewer reserve balances. The Treasurer would like to clarify lifecycle costs and allow for anticipated costs to avoid erratic fluctuations on water and sewer rates as a result of inconsistent and unanticipated capital asset maintenance requirements. By establishing the water and sewer reserve fund the Town of Aurora is considered a model example within the municipal sector. The Treasurer explained that the costs are not solely driven by consumption but rather by periodic infrastructure commitments that are not tied to metered consumption levels. The basis of the report is to review the need to adjust water and sewer rates as well as the adequacy of the current flat rate charge for storm related costs and establish a flat rate for storm related services. Rate and reserve projections are based on life cycle contributions, the operating needs of the municipality and the need to provide for a sustainable reserve fund balance. The Treasurer explained that the mandate of the Provincial Government may require changes to the manner with which municipalities establish water and sewer rates in the future to reflect full cost recovery of rate supported services. Moved by Mayor Jones Seconded by Councillor Timpson THAT the Treasurer’s Report #TR01-036 “2002 Water, Sanitary and Storm Sewer Rate and Reserve Review” be received for information; THAT the C.N. Watson and Associates Ltd. report “Evaluation of Sewer and Water Reserves – October 2001” be received for information; THAT Council direct staff to phase in equal proportions the implementation of the net lifecycle contributions over a (2) year period commencing 2002; THAT Council approve the 2002 Retail Water rate of $0.6963 per cubic meter and the Retail Sanitary Sewer rate of $0.4741 per cubic meter for all bills issued on and after April 1, 2002; THAT Council approve the setting of the Flat Rate Storm Sewer charge to $43.00 per annum for metered Residential properties and $276.00 per annum for metered Commercial/Industrial and Multi-Residential properties effective January 1, 2002; and THAT Council reaffirms its approval to classify multi-unit apartments and townhomes on residential bulk meters as Commercial/Industrial properties for purposes of applying the flat rate storm sewer charge. CARRIED Moved by Councillor Vrancic Seconded by Councillor Timpson THAT a provision be implemented to safeguard the use of the water and sewer reserve fund and in the event that borrowing occurs from the fund for non-rate related expenditures the relevant tax support program would be responsible for repayment of principal and interest at a rate which reflects the Town's cost of borrowing. CARRIED General Committee Meeting No. 17-01 Page 3 Tuesday, November 20, 2001 2. TR01-034 - 2002 Fees and Services Moved by Councillor West Seconded by Mayor Jones THAT the 2002 Fees and Service Charges for licences and services itemized on the attached schedules be approved, effective January 1, 2002 CARRIED 3. TR01-035 - Initial 2002 Operating & Capital Budget and 2003 – 2004 Outlook and Presentation from Allan Evelyn, Treasurer The Treasurer gave a brief presentation regarding TR01-035 - Initial 2002 Operating & Capital Budget and 2003 – 2004 Outlook. Mr. Evelyn explained that the aim is for responsible services to be provided to the residents of the Town of Aurora. The Treasurer explained the realities of balancing demands upon cash flows during extensive capital works construction projects (i.e. new 45,000 square foot municipal facility, undertaking to rehabilitate underground municipal works, construct major new underground services). The Treasurer also explained that with the implementation of the integration of the fire/emergency services with the Town of Newmarket’s Fire Department which is at an annual cost of greater than $1 million within a twelve to fifteen month window, this has tested this municipality’s ability to effectively and efficiently manage its human, physical and financial resources. The 2002 – 2004 operating and capital budget outlook establishes a strategy to fund future financial obligations through a balance of tax rate increases, committing to enhance reserves and reserve fund contributions, while also making use of internal sources of financing as a short term funding alternative. The Treasurer requested that the committee establish dates for a comprehensive review of the Budget. Moved by Councillor West Seconded by Councillor Vrancic That the Treasurer’s Report #TR01-035 “Initial 2002 Operating and Capital Budgets and 2003-2004 Outlook” be received for information; and THAT staff report back differentiating in the budget amounts between the funding committed increases versus the recommended increases and provide an explanation of the impact that reductions would have on current service levels. Once modified this information will be referred to the Administration & Finance Committee for comprehensive review and discussion. CARRIED VII OTHER BUSINESS, COUNCILLORS Councillor West requested information regarding how many residents are not on water meters. General Committee Meeting No. 17-01 Page 4 Tuesday, November 20, 2001 IX ADJOURNMENT Moved by Councillor Timpson THAT the meeting be adjourned at 8:45 p.m. CARRIED (THE REPORT OF THE GENERAL COMMITTEE MEETING NO. 17-01 WAS CONSIDERED AND ADOPTED BY COUNCIL AT ITS MEETING HELD ON NOVEMBER 27, 2001) ______________________ _________________________________ T. JONES, MAYOR B. PANIZZA, TOWN CLERK