Report to/Rapport au :

 

Finance and Economic Development Committee

Comité des finances et du développement économique

 

and Council / et au Conseil

 

24 March 2011 / le 24 mars 2011

 

Submitted by/Soumis par : Marian Simulik, City Treasurer/Trésorière municipale

 

Contact Person/Personne ressource : Joanne Farnand, Manager, Financial Services/

Gestionnaire, services financiers

Finance Department/ Service des finances

613-580-2424, ext./poste 22712, joanne.farnand@ottawa.ca

 

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2010-CMR-FIN-0018

 

 

SUBJECT:

CONSERVATION AUTHORITIES - 2011 LEVIES

 

 

OBJET :

PRÉLÈVEMENTS 2011 DES OFFICES DE PROTECTION DE LA NATURE

 

 

REPORT RECOMMENDATION

 

That the Finance and Economic Development Committee recommend Council approve the 2011 levies as presented in Document 1 for the following:

 

  1. Rideau Valley Conservation Authority;
  2. South Nation Conservation Authority; and
  3. Mississippi Valley Conservation Authority.

 

 

RECOMMANDATION DU RAPPORT

 

Que le Comité des finances et du développement économique recommande au Conseil d’approuver les prélèvements de 2011 tels qu’ils sont présentés dans le document 1 pour les offices de protection de la nature suivants:

 

  1. Office de protection de la nature de la vallée de la rivière Rideau;
  2. Société d’aménagement de la rivière Nation-Sud; et
  3. Office de protection de la nature de la vallée de la rivière Mississippi.

 

 


BACKGROUND

 

The City of Ottawa is located in the watersheds of three rivers, all of which have an established Conservation Authority; the Rideau Valley (RVCA), Mississippi Valley (MVCA) and South Nation (SNCA).  The taxation requirement by the Conservation Authorities has been excluded in the City’s budget, as they have a separate levy on the tax bill. 

 

The Conservation Authorities Act provides that Conservation Authorities shall apportion administration/maintenance costs amongst participating municipalities in accordance with the benefits derived. The City primarily acts as the tax collector on behalf of the Conservation Authorities and collects the amount in the same manner as municipal taxes for general purposes.  Consequently, Council has no discretion over the amounts listed under the general levy.  Council, however, does have discretion over the special and capital projects portion of their levy.

 

In accordance with section 312 of the Municipal Act the municipality shall, each year, pass a by-law levying the separate tax rates for this purpose.  Approval of this report will establish the levy requirements. 

 

 

DISCUSSION

 

Levy rates are calculated based on the budgets as attached in Document 1, submitted by each Conservation Authority. 

 

The City of Ottawa’s share of the general levy is apportioned on the basis of the assessment for the City of Ottawa relative to the total assessment within the watershed.  The relative amount can change from year to year depending on the growth in Ottawa as compared to the other contributing municipalities.  Mississippi Valley Conservation Authority’s 2011 general levy request is 9% higher than its 2010 request from the City, reflecting anticipated higher costs of maintaining its water and erosion control infrastructure (net of 50% provincial funding); projected reduction in wage subsidies; and additional costs to update Section 28 Regulation schedules.  Both the South Nation and Rideau Valley Conservation Authorities 2011 general levies are in line with basic cost of living , increased costs to maintain existing programs and as a result of a slight increase in the relative share apportioned to the City of Ottawa (given Ottawa’s higher assessment growth relative to that of the other contributing municipalities).   

 

There is some discretion on amounts identified as special and capital levies.  In the past, funding requests for certain projects that specifically benefitted the City were identified as special levies and these programs are generally supported by staff and through Council approvals as they complement City initiatives and staff partner with the Conservation Authorities to deliver these programs. 

 

This year, a new Capital Levy category was introduced to properly classify the new or ongoing requirements to fund or offset capital costs related to the design and renovation of new offices for two of the conservation authorities which do not fall within the definition of an administration or maintenance cost for inclusion in the general levy under the Conservation Authorities Act but which are classed as general benefitting and allocated to all member municipalities.  Details on the special and capital levies are provided below.

 

 

DETAILS OF SPECIAL LEVIES

 

Rideau Valley Conservation Authority

 

Rideau River Ice Management - There is a longstanding arrangement between the RVCA and the City concerning Rideau River Ice Management.  By Council approval on June 8, 2005 (ACS2005-PWS-SOP-0003), the RVCA is to fund the full cost of Rideau River Flood Control through their special levy, beginning in 2006.  In conformity with this direction, the RVCA is requesting $282,000 in special levies for the 2011 program.

 

Ottawa Infrastructure Reserve – In 2010, when the Conservation Authorities’ budgets were approved, Council also established the Water Control Capital Asset Reserve proposed by the RVCA.  This reserve is to be funded annually through a $10,000 special levy contribution by the City of Ottawa.  It is intended to cover the City’s share of unexpected operating and maintenance costs, preventive maintenance and emergency repairs that exceed annual allowances for routine operation and maintenance of aging RVCA-owned flood and erosion control infrastructure in the City of Ottawa.  If this year’s request is approved, the amount of the reserve will total $20,000. 

 

Richmond Environmental Management Plan – On July 14, 2010, Council approved the Village of Richmond Environmental Management Plan (ACS2010-ICS-PGM-0122) which includes infrastructure and capital improvements to the Richmond Conservation Area, City-owned properties and parks as part of the overall Village of Richmond Community Design Plan. 

 

The projects identified in the environmental management plan are estimated to cost $121,700 over a three year period.  2011 will be the first of the three year development strategy and this year’s funds will be used to improve and develop the trails and parking lot and construct a bird viewing platform in the Richmond Conservation Area. 

 

South Nation Conservation Authority

 

Rural Clean Water Grants Program - The Rural Clean Water Program provides grants to rural residents to undertake projects that improve the quality of surface water and ground water.  The program has been funded since 2005 through a yearly levy of $184,000 and is important for promoting stewardship and reducing the impact of activities on water quality.  Since its inception in 2000, eight hundred and two projects have been completed.

 

On July 14, 2010, Council approved the program for an additional five years, ending December 31, 2015 (ACS2010-ICS-PGM-0132).  This new contract with South Nation Conservation Authority provides for a special levy of $200,000 per year.  The 2011 – 2015 program is to be modified to allow a one-window approach to the Ontario Rural Clean Water Grants Program (ORCWGP) and the Canada-Ontario Farm Stewardship Program (COFSP), and/or the Green Acres and Shoreline Naturalization Programs that will allow qualified farm operators who are pursuing the senior government grant and residents wishing to undertake projects that involve tree planting to streamline access to respective grant top-ups.  Other changes include focusing on priority projects that result in direct improvement to water quality and developing outreach tools to recruit new participants such as non-farm property owners and other rural residents with large property holdings.

 

In approving a renewed program, Council also directed that an additional, separate $50,000 be added to the Rural Clean Water Grants Program budget to include properties within the urban boundary that are eligible for the well decommissioning grant, bringing the total 2011 special levy amount to $250,000.

 

Eastern Ontario Water Resources Committee - The Eastern Ontario Water Resources Committee works cooperatively to implement the recommendations of the Eastern Ontario Water Resources Management Study.  The membership includes municipalities, conservation authorities, provincial ministries, the University of Ottawa, and farming groups.  Initiatives funded in 2010 include well decommissioning and water efficiency team projects, well protection, riverwatch and outreach programs.  The 2011 request of $50,000 has not increased over 2010.  

 

 

DETAILS OF CAPITAL LEVIES

 

Mississippi Valley Conservation Authority

 

Mississippi Valley Administration Office Capital Levy – New office space requirement was identified several years ago and, since 2009, the City has contributed an average of $271,958 per year towards the design of the new administrative office.  This capital levy is being identified separately since, by definition under the Conservation Authorities Act, is not an administrative or maintenance cost for classification under general levy.  The City’s 2011 assessed share is $270,878 and the 2010 amount has been re-classed for comparative purposes.

 

South Nation Conservation Authority

 

South Nation Finch Building Levy – The South Nation Conservation Authority moved into their new headquarters in October 2008.  Total cost of the renovations was $1,246,752, of which, $1,012,051 was the assessed portion that was to be recovered from the City.  That year, South Nation gave its member municipalities the option of paying it off in full or amortizing it over twenty years.   The City opted for the twenty-year amortization period and, based on an interest rate of 3.36%, the City’s 2008 amortized share was calculated at $65,752.  SNCA reviews the interest rate each year and adjusts the annual amortization amount.  For 2011, the capital repayment cost is $56,515 and includes principal and interest.

 

As this expense does not fall within the definition of an administration or maintenance cost in the Conservation Authorities Act for classification as a general levy, this cost is being identified separately in the report and 2010 amounts in Document 1 have been restated for comparative purposes. 

 

 


ENVIRONMENTAL IMPLICATIONS

 

The Conservation Authorities are key conservation partners with the City.  Its programs play a critical role in ensuring environmental quality and conservation efforts including watershed protection.  Programs funded through the general and special levy of the Authorities result in direct efforts to protect and improve water quality, conserve wildlife and biodiversity, increase forest cover, and protect against natural hazards such as flooding and unstable slopes. 

 

 

RURAL IMPLICATIONS

 

Many of the Conservation Authority Programs such as the Rural Clean Water Program directly benefit the rural residents and agricultural operations of the City.  The Authorities also support environmental objectives, stewardship and education in the rural area through ownership of conservation lands, support for the landowner contact centre, and other initiatives with direct benefits in the rural area.

 

 

CONSULTATION

 

Budgets for Conservation Authorities are co-ordinated with the Community Sustainability Services Department based on documentation supplied by the Conservation Authorities. 

 

 

COMMENTS BY WARD COUNCILLOR(S)

 

N/A – City-wide program.

 

 

LEGAL/RISK MANAGEMENT IMPLICATIONS:

 

There are no legal or risk management impediments to implementing the recommendations of this report. 

 

 

CITY STRATEGIC PLAN

 

The work of the Conservation Authorities is critical in achieving Objective 3 (protect the water environment and source water supply and control) under the Solid Waste and Environment Priority.  This objective specifically references the work of the Conservation Authorities who, along with being involved in a wide range of programs to protect the water environment, are playing a lead role in the Provincial source water protection program.

 

 

TECHNICAL IMPLICATIONS

 

There are no technical implications associated with this report.

 

 

FINANCIAL IMPLICATIONS

 

Per Council direction, the City's share of the funding requirements for the Conservation Authorities is raised through the establishment of separate tax rates applied to the various property classes within the City of Ottawa.   Based on the requirements submitted in this report, the Conservation Authorities are requesting an increase of $210,912, which represents a 2.51% increase over the amount provided in 2010. 

 

 

SUPPORTING DOCUMENTATION

 

Document 1 -     General and Special and Capital Levies for Conservation Authorities, City of Ottawa Levy Requirements.

 

 

DISPOSITION

 

The Finance Department will calculate the property tax rates to generate the required levies and will forward the funds to the Conservation Authorities.  The City Clerk and Solicitor Department will prepare the appropriate by-laws.

 


Document 1

 

General, Special & Capital Levies for Conservation Authorities

City of Ottawa 2011 Levy Requirements

 

 

 

Rideau Valley Conservation Authority

Mississippi Valley Conservation Authority

South Nation Conservation Authority

Total Conservation Authorities

 

 

 

 

 

2011 General Levy Request

3,959,073

1,675,740

2,030,887

7,665,700

 

 

 

 

 

Special Levy Request

 

 

 

 

Rideau River Ice Management

282,000

0

0

282,000

Ottawa Infrastructure Reserve

10,000

0

0

10,000

Richmond Environmental Mgt Plan

43,000

0

0

43,000

Ottawa Rural Clean Water Program

0

0

250,000

250,000

Eastern Ontario Water Resources Committee

0

0

50,000

50,000

2011 Special Levy Request

335,000

0

300,000

635,000

 

 

 

 

 

Capital Levy Request

 

 

 

 

MV Admin Office Capital Levy

0

270,878

0

270,878

SN Finch Building Levy

0

0

56,515

56,515

2011 Capital Levy Request

0

270,878

56,515

327,393

 

 

 

 

 

2011 Total Conservation Authority Request

4,294,073

1,946,618

2,387,402

8,628,093

 

 

 

 

 

2010 General Levy

3,778,178

1,535,142

1,945,259

7,258,579

2010 Special Levy Request

515,600

0

370,000

1,158,602

2010 Capital Levy Request

0

270,710

72,292

343,002

2010 Total Conservation Authority Request

4,293,778

1,805,852

2,317,551

8,417,181

 

 

 

 

 

2011 Increase / (Decrease)

 

 

 

 

2011 General Levy

180,895

140,598

85,628

407,121

2011 Special Levy Request

(180,600)

0

0

(180,600)

2011 Capital Levy Request

0

168

(15,777)

(15,609)

Total 2011 Increase/(Decrease)

295

140,766

69,851

210,912

 

 

 

 

 

2011 Percentage Increase / (Decrease)

 

 

 

 

2011 General Levy

4.79%

9.16%

4.40%

5.61%

2011 Special Levy Request

(35.03)%

0.00%

0.00%

(22.14)%

2011 Capital Levy Request

0.00%

0.06%

(21.82)%

(4.55%)

Total Percentage Increase

0.01%

7.79%

3.01%

2.51%

 

 

2010 levy totals did not change but General and Special Levy amounts for MVCA and SNCA have been restated for comparative purposes.