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HomeMy WebLinkAboutFinance & Admin - 1996-10-07FAC\1996-10-07 OCTOBER 7, 1996 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date commencing at 10.25 a.m. under the Chairmanship of Councillor J. Ziegler with the following members present: Mayor R. Christy, Councillors T. Galloway, G. Lorentz, K. Redman, Jake Smola, John Smola, B. Vrbanovic, M. Wagner and C. Weylie. Councillor M. Yantzi was in attendance for part of the meeting. Others present: Ms. P. Houston, Ms. R. Upfold, Ms. L. MacDonald, Messrs. R. W. Pritchard, S. Gyorffy, G. Anderson, O. den Ouden, T. McCabe, T. Clancy, R. Arnot and G. Sosnoski. 1. PROPERTY TAX ARREARS - 527 PIONEER TOWER ROAD The Committee was in receipt of a report from O. den Ouden dated October 1, 1996 outlining circumstances surrounding an accumulation of tax arrears. They were also in receipt this date of a tax account status report incorporating outstanding taxes, arrears penalties and interest charges totalling $16,949.79. Reverend Rutledge, Pastor of the Good Samaritan Community Church, appeared and requested relief as regards the accumulated penalty and interest charges for taxes owing on the property at 527 Pioneer Tower Road. Pastor Rutledge explained the financial circumstances surrounding the property which is now in the hands of the Church as the holder of the first mortgage. Pastor Rutledge explained the efforts of the Church and selected members of the congregation to assist the family who owned the property prior to the Church taking possession. He explained that it was not realised at the time of these actions that the Church was being assigned the first mortgage, and it was anticipated the family would sell its principal residence in order to repay the mortgage, outstanding taxes and personal loans received. This has not been the case and the Church was forced to foreclose. Pastor Rutledge further pointed out that he was only recently aware of the fact that the taxes were not being paid and of the magnitude of accumulated penalties and arrears. He explained that the Church now has a firm offer and the sale will take place on December 13, 1996; however, the proceeds from the sale are insufficient to cover all of the debts and personal loans. He stressed that he is not requesting exemption from taxes, but rather consideration as regards the penalty and interest payments. He also acknowledged the City's concern that such action would set a precedent, but stressed that the bank he has been dealing with indicated that the circumstances surrounding this property are unique in their experience. Councillor Ziegler enquired as to the estimated value of the property and Pastor Rutledge replied indicating approximately $160,000.00. Councillor Redman commended the congregation for it's efforts in attempting to assist the family in question; however, she suggested that Christian charity should stand on it's own, separate from financial obligations. She pointed out that tax relief is a huge issue for the City and questioned whether the Church could not pay the amount owing the City over time. Mr. den Ouden replied that if the property is sold on December 13, this would not be an option as all taxes will be owing at the point of sale and the new owner will not likely want to purchase the property with a $17,000.00 tax liability. Moved by Councillor M. Wagner "That no action be taken on the request of Reverend Rutledge, Paster of the Good Samaritan Community Church, for relief from penalty and interest charges on property tax arrears for 527 Pioneer Tower Road, a property in which the Church has a financial interest." Councillor Wagner advised that he is putting forward the above motion reluctantly. He stressed that if the City were to agree to the request, this would be at the expense of all taxpayers through the general levy. He added that Council has been approached with such requests in the past and has taken no action, and cannot help one group or individual without agreeing to help others in similar circumstances. Councillor Galloway referred to the precedent which would be set if Council were to grant relief in this case. He also advised that the subject lands are part of the Pioneer Tower West planning process and although currently designated Residential, may reflect additional value if acquired by an adjoining land owner. FINANCE & ADMINISTRATION COMMITTEE MINUTES OCTOBER 7, 1996 - 123 - CITY OF KITCHENER PROPERTY TAX ARREARS - 527 PIONEER TOWER ROAD - CONT'D The motion by Councillor M. Wagner to take no action on request for tax relief was then voted on and Carried. Mayor Christy asked how the Finance Department would deal with this matter and Mr. den Ouden replied that Revenue will take no further action until December 13th, and if nothing happens prior to that date will contact the Church's solicitors. THE SALE OF SURPLUS LANDS - BLOOMINGDALE ROAD The Committee was in receipt of a report from G. Anderson dated September 18, 1996 recommending that vacant land on Bloomingdale Road be declared surplus and offered for sale. Moved by Councillor John Smola "That 2.15 acres of vacant land described as Part of Lot 71, German Company Tract, situated on Bloomingdale Road be declared surplus to the City's needs, and the Land Purchasing Officer be directed to dispose of the land, which is zoned R-3 permitting single family homes on 45 foot lots, and present an offer to Council for acceptance." Councillor Jake Smola questioned whether the subject property would be worth more if it were severed and then sold as individual lots as opposed to a single block of land. Mr. Anderson replied that if severed, the property would be potentially worth more; however, in the absence of a specific price for the block of land, this additional value can not be identified at this time. He also referred to the sale of a former fire-hall site as three separate lots. Mr. Anderson expressed a preference for bringing back an offer to Council when one is received, so that Council can review and discuss the options at that time. Councillor Lorentz pointed out that the City is not in the land development business, and this type of activity should be left to the private sector. The motion by Councillor John Smola to declare the lands on Bloomingdale Road surplus was then voted on and Carried. GRAND RIVER CONSERVATION AUTHORITY (GRCA) - SPECIAL BENEFIT PROJECTS The Committee was in receipt of a joint report and recommendation from P. Houston and S. Gyorffy dated October 1, 1996 relative to the funding of future projects. In response to a question from Councillor Vrbanovic, Mr. Gyorffy noted that all but one of the projects referred to in the report are in the City's Ten Year Capital Forecast, subject to receiving additional funding. On a motion by Mayor R. Christy, it was resolved: "That the City of Kitchener endorse the following option with respect to the funding of Grand River Conservation Authority (GRCA) Capital Projects within the City of Kitchener, effective January 1, 1997: a) a shared Regional/area municipality funding formula whereby the City would assume the 60% share of the projects previously funded by the Province and the GRCA, and the Region would retain its 40% contribution; b) the GRCA will act in an advisory capacity to the Region and area municipalities for all watershed management capital projects." Councillor M. Yantzi entered the meeting at this time. REGIONAL COUNCIL REPRESENTATION - MUNICIPAL ELECTION Mr. Pritchard advised that late last week he received direction from the Ontario Municipal Board (OMB) concerning the process for consideration and approval of the City's Ward boundary FINANCE & ADMINISTRATION COMMITTEE MINUTES OCTOBER 7, 1996 - 124 - CITY OF KITCHENER realignment. He noted that an advertisement will appear in the paper later this week, followed by a three week waiting period with no possibility for a hearing by the OMB prior to the first or second week of December. He noted that a formal OMB order is required by the end of December at the latest. Mr. Pritchard read an amended motion approved by Regional Council on September 26, 1996 concerning the composition of Regional Council and the method of election. He noted that Kitchener would have six members on Regional Council in addition to the Mayor and drew Council's attention to the wording, "...all elected-at large and their respective area municipality, not withstanding the City of Kitchener may not be in a position to implement direct-election for the 1997 Municipal Election." Mr. Pritchard emphasised that given the current wording, the six Kitchener representatives would have to be directly elected at large. He pointed out that the use of the term "at-large" is subject to more than one interpretation, and may not reflect what was intended. At present, all members of Kitchener Council are elected by Ward, and only the Mayor runs on an at-large basis. Mr. Pritchard added that the Regional Municipality of Waterloo Act will be amended to incorporate the intent of the motion and suggested that Council may wish to address the issue of interpretation prior to any such amendment. Councillor Ziegler advised that prior to seeing the revised wording referred to by Mr. Pritchard, he would have proposed that all Kitchener Ward candidates also run for Regional Council, with those representatives going to the Region being based on winning a Ward seat and on their status at large. Mayor Christy acknowledged that Kitchener has a responsibility to develop a process for direct election to the Region and is prepared to deal with this; however, he also noted that the community previously voted on the ballot for a Ward as opposed to an at-large system of representation. He also suggested that the Clerk and legal Council should not put undue emphasis on the phrasing of the Regional of Waterloo motion as the term "at-large" is meant to signify that the electorate directly elects Regional representatives, notwithstanding that Council has not come to grips with how this relates to the current ten Ward system. He noted that the former system of appointing representatives to Regional Council worked well from the City's standpoint given the varying degrees of experience; however, this method cannot continue beyond 1997 based on the direction of Regional Council. Councillor Galloway suggested that it may be necessary to re-work the amended Regional motion to better reflect the intent of the discussion, but noted that the City has another term to deal with the issue of direct election. He suggested that there are multiple options for dealing with direct election, one of which was expressed by Councillor Ziegler, and another being a new form of telephone election as contemplated in proposed amendments to the Municipal Election Act. He suggested that the City should await any amendment to the Act before proceeding in this area. Mr. Pritchard acknowledged that Council appears to be indicating that "direct election" was meant to be interpreted broadly and not as election "at-large"; however, legally this may not be the interpretation incorporated in the Regional Municipality of Waterloo Act. Councillor John Smola suggested that further clarification should be obtained at the next Regional Council meeting. It was agreed that Mr. Pritchard would raise the concerns expressed this date in a letter to be sent to all Members of Regional Council, after such letter has been reviewed by Kitchener Council. Council then discussed the issue of when the most appropriate method of election should be developed and by whom. Councillor Redman suggested that this issue should be referred to a future Council for consideration early in 1998, and Mr. Pritchard suggested that this could be an item of business on the first Finance and Administration Committee agenda of the newly elected Council. 4. REGIONAL COUNCIL REPRESENTATION - MUNICIPAL ELECTION - CONT'D Councillor Redman put forward a motion that the issue of how the City will provide for direct election to Regional Council be placed on the first Finance and Administration Committee agenda of the new Council to be elected in 1997. Councillor Wagner expressed concern over putting off a decision that is better made now given the background that this Council has had in the course of discussion. Councillor Vrbanovic indicated his support for the motion on the basis that there is little opportunity to obtain OMB FINANCE & ADMINISTRATION COMMITTEE MINUTES OCTOBER 7, 1996 - 125 - CITY OF KITCHENER approval for additional changes prior to the 1997 election. Mr. Pritchard clarified that the Secretary of the OMB has indicated that all applications currently before the Board must be processed by them, and that subject to changes to the Municipal Election Act, subsequent changes may not require Board approval. Councillor Lorentz strongly indicated that he wishes to be part of the decision making process in this regard and that the decision should be made by this Council as the one most knowledgable in the issues under discussion. He suggested giving direction to staff to strike a working committee and obtain public input on how to implement direct election to the Region and to deal with this early in 1997. Councillor Ziegler suggested awaiting the outcome of proposed amendments to the Municipal Election Act. Councillor Redman amended her motion to reflect that this Council would have an opportunity prior to the 1997 Election to deal with the issue if it wished, after which it would be referred to the first Finance and Administration Committee meeting of the new Council. Councillor Yantzi suggested that it may be wise to withdraw the application before the OMB at this time pending the proposed election amendments. The Committee then voted on the main motion of Councillor K. Redman regarding the provision of direct election to Regional Council, as amended. On a motion by Councillor K. Redman, it was resolved: "That unless the issue of direct election of Kitchener representatives to Regional Council has been dealt with by this Council prior to the 1997 election, the issue of how the City will provide for such direct election will be listed for consideration on the first Finance and Administration Committee agenda of the new Council." Councillor M. Yantzi put forward, then withdrew, a motion to withdraw the application currently before the OMB relative to Ward Boundary realignment. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, October 21, 1996. ADJOURNMENT On motion, the meeting adjourned at 11.40 p.m. G. Sosnoski Manager of Corporate Records/Assistant City Clerk