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15. CANCELLATION OF PENALTY/INTEREST CHARGES – 159 MURRAY STREET – C/O
CENTRE DE JOUR GUIGUES (CJG) ANNULATION DE PÉNALITÉ
/ FRAIS D’INTÉRÊT – 159, RUE mURRAY – A/S
DU CENTRE DE JOUR GUIGUES (cjg) |
COMMITTEE RECOMMENDATION
That Council approve the cancellation of
penalty/interest charges (totalling approximately $58,238.82) for the property
municipally known as 159 Murray Street which is owned by ‘Le Centre de Jour
Polyvalent des Aînés Francophones d’Ottawa-Carleton c/o Centre de Jour Guigues
(CJG)’.
RECOMMENDATION DU COMITÉ
Que le Conseil approuve l’annulation des frais d’intérêt / pénalité (atteignant la somme approximative de 58 238,82 $) visant la propriété qui porte l’adresse municipale 159, rue Murray, appartenant au Centre de jour polyvalent des aînés francophones d’Ottawa-Carleton a/s du Centre de jour Guigues (CJG).
DOCUMENTATION
1. Report from Councillor Bédard, Ward
12, Rideau-Vanier dated
12 October 2006 (ACS2006-CCS-CSE-0010).
Report to/Rapport au :
Corporate Services and
Economic Development Committee
and Council / et au Conseil
12 October 2006 / le 12 octobre 2006
Submitted by/Soumis par : Councillor/Conseiller Georges Bédard
Contact
Person/Personne ressource : Councillor/Conseiller Georges Bédard
(613) 580-2482, Georges.Bedard@ottawa.ca
REPORT RECOMMENDATION
That the Corporate Services and Economic Development Committee
recommend that Council approve the cancellation of penalty/interest charges
(totalling approximately $58,238.82) for the property municipally known as 159
Murray Street which is owned by ‘Le Centre de Jour Polyvalent des Aînés
Francophones d’Ottawa-Carleton c/o Centre de Jour Guigues (CJG)’.
RECOMMANDATION DU
RAPPORT
Que le Comité des services organisationnels et du développement économique recommande au Conseil d’approuver l’annulation des frais d’intérêt / pénalité (atteignant la somme approximative de 58 238,82 $) visant la propriété qui porte l’adresse municipale 159, rue Murray, appartenant au Centre de jour polyvalent des aînés francophones d’Ottawa-Carleton a/s du Centre de jour Guigues (CJG).
BACKGROUND
The Centre de services Guigues (CSG) is a non-profit organization registered as a charitable group with Revenue Canada. The CSG, an amalgamation of two former groups i.e. the Service d’entraide communautaire and the Centre de jour Guigues, is a multi-purpose francophone senior’s center offering day programs and home care services.
In 1996, the CSG moved into the former École Guigues, located at 179 Murray St in Lowertown Ottawa. As a part owner of the site, it has since been subject to municipal taxation, albeit at the residential rate.
Because of its status as a non-profit and charitable organization the CSG was advised to apply for an exemption of municipal taxation. This was submitted twice to the City of Ottawa and consequently to the Province of Ontario, once in February of 1997 and later, in the form of an appeal, in June of 2005. However, in 1997 provincial regulations were altered, denying further exemptions of municipal taxations to charitable organizations. Nonetheless the CSG was advised to withhold the payment of taxes as a report to Council was being prepared recommending that non-profit groups like CSG be granted exemption from taxes because of their contributions to the betterment of city life. Since numerous other organizations such as the Good Companions were exempt of municipal taxation, the authorities felt that the CSG should be treated the same way.
DISCUSSION
In 2004, after being advised that a report would not be going forward to Council to grant an exemption for groups similar to CSG, numerous discussions were held between CSG personnel, City of Ottawa Directorate of finance and the new municipal councillor with respect to the tax issue affecting the CSG. As a result it was proposed by City staff that the CSG pay off back taxes with cheques to be held in trust for the outstanding taxes of $124,549.57 (two cheques of $17,549.57 dated 18 August 2005 and $107,000.00 dated 20 December 2005 were sent). These cheques were to be held in trust as a request was to be made to the City for the cancellation of penalties and interests incurred on the back taxes. As of 6 June 2006 the penalties and interests amount to roughly $60,000.00. The CSG assumed that the City of Ottawa would cancel this amount once taxes in arrears have been paid.
The CSG is quite preoccupied by the existing situation, as it depends entirely on provincial, municipal and private funding for its operation; CSG cannot allow the situation to continue as interest charges of 1.2% per month are imposed on all arrears and penalties. At this time this represents about $750.00 per month. A sound management of their resources cannot allow this situation to continue.
The City of Ottawa and the CSG have worked very hard to remedy this situation. CSG has now paid to the City of Ottawa the balance of a taxes remaining on their tax account. As a gesture of its goodwill and in recognition of the beneficial work of the CSG, it is recommended that Council waive the relevant penalty and interest which accumulated after relying on advice from City representatives.
CONSULTATION
The Legal Services Branch has reviewed this report.
Given the administrative nature of the recommendation, no public consultation was undertaken.
FINANCIAL IMPLICATIONS
Cancellation of penalty/interest charges totalling approximately $58,238.82.
SUPPORTING DOCUMENTATION
N/A
DISPOSITION
Corporate Services
Department, Revenue Division, will cancel penalty/interest charges on the
property tax account, municipally known as 159 Murray Street, in the City of
Ottawa.