Additions to Council, February 28, 2012 pm 11
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CI OF! �i L . C4NA94
N IAGARA FALL
The City of Niagara Falls, Ontario
Resolution
No.
Moved by Councillor
Seconded by Councillor
WHEREAS all meetings of Council are to be open to the public; and
WHEREAS the only time a meeting or part of a meeting may be closed to the public if the subject
matter falls under one of the exceptions under s. 239(2) of the Municipal Act, 2001.
THEREFORE BE IT RESOLVED THAT on February 28, 2012 Niagara Falls Council will go
into a closed meeting to consider matters that fall under the subject matter of239(2)(c)proposed or
pending acquisition or disposition of lands by the municipality related to part of an alley, Plan 311,
lying between Peer Lane, Lots 14 and 16 of Coangelo Estates Plan of Subdivision and Pts. 1 and 2
on Reference Plan 59R -9971 and the corner of Pew Street and Brookfield Avenue and a 239 (2)(e)
a litigation matter.
AND The Seal of the Corporation be hereto affixed.
DEAN IORFIDA JAMES M. DIODATI
CITY CLERK MAYOR
Page 1 of 1
Teresa Fabbro - Fwd: Request to Council on cottage rental dwellings
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From: Alex Herlovitch
To: Dean Iorfida; Teresa Fabbro
Date: 2/24/2012 11:55 AM
Subject: Fwd: Request to Council on cottage rental dwellings
Attachments: CityCouncil1202.pdf
Dean
Attached is a copy of a letter from the Westhues asking that Council do a study of Cottage Rental units in light of the
application AM- 2011 -015.
Likely it should be an addition to the Council agenda.
Alex
»> <kwesthue @uwaterloo.ca> 2/23/2012 12:03 PM »>
Mr. Alex Herlovitch
Director of Planning, Building, and Development
City of Niagara Falls, Ontario
Dear Alex,
Further to our email exchange in late January, please find attached a
3 -page PDF document requesting City Council to freeze cottage rental
approvals, pending completion by staff of a detailed policy on the
matter. Please forward it by your standard procedures to the Mayor and
Members of Council.
Thank you for informing me of the correct wording to use in making
such a request.
I thought I should delay submitting this request until the staff
report on the cottage rental application for 5401 River Road would be
available. David Deluce kindly sent me a copy this morning. This most
recent staff report reflects the same patterns identified in my study
of the earlier reports.
Regrettably, there is simply no way I can get back to the Falls for
the upcoming Council meeting. I believe that one or more other
residents who support this request may be present in person.
I would appreciate confirmation that the attachment successfully
transmits, and I would also, of course, ask to be informed of
Council's decision.
Many thanks, sincerely,
Ken
Anne and Kenneth Westhues
5419 River Road
Niagara Falls, Ontario L2E 3H1
file: / /C:ADocuments and Settings \tn206 \Local Settings\ Temp \XPgrpwise \4F477ABFDomai... 2/24/2012
REQUEST TO CITY COUNCIL OF NIAGARA FALLS, ONTARIO
c/o Mr. Alex Herlovitch, Director, Planning, Building, & Development
That Council direct City Staff to prepare an Interim Control By -law under Section 38 of the
Planning Act, freezing approval of cottage rental applications for one year while staff study the
matter and draft a policy specifying criteria for evaluating cottage rental applications
Kenneth Westhues
5419 River Road
Niagara Falls, Ontario L2E 3H1
kwesthue @uwaterloo.ca
February 23, 2012
Origin of this request
By standard procedure, city staff informed my wife and me, as nearby neighbours, of the current
cottage- rental application for 5401 River Road. I was puzzled and concerned by the news. Jean
and Ken Murphy had lived in that grand old heritage house for decades, raised their family there,
until moving to a residence for the elderly in the spring of 2011. My concerns led me to review
systematically the planning reports and Council minutes on previous cottage- rental applications.
I found documentation online for 12 such applications. These are listed at the end of this
submission. The list coincides with a list of approved cottage rentals kindly sent to me by David
Deluce of the Planning Department.
Current policy
Para. 1.3.3 of the Official Plan sets forth with admirable clarity the overall objectives, but
without detailing criteria by which to implement those objectives:
Cottage Rental Dwellings within homes may be permitted by zoning by -law amendments
where they are considered to be compatible with the residential neighbourhood. The
establishment of such facilities will be carefully regulated as to their location, size and
traffic generation in order to minimize potential disturbances to adjacent properties and to
protect the character and identity of the overall neighbourhood.
Current practice
Despite serious effort by city staff, the regulation mandated by the Official Plan has been
haphazard, on account of the lack of a specific policy and means of enforcement. The VRBO
website currently advertises about a dozen cottage rentals in Niagara Falls for which no record of
city approval can be found. In many cases, a homeowner has applied for approval only after
neighbours have complained to the city about "disturbances to adjacent properties" and serious
damage to "the character and identity of the overall neighbourhood."
Request to Council re: Cottage Rentals, February 2012, p. 2 of 3
So far as can be seen in available documents, penalties are vaguely threatened but rarely or never
enforced for operating a cottage rental business without approval, even after neighbours have
presented evidence of "disturbances to adjacent properties."
I have been unable to find even one application for cottage rental that was not recommended for
approval by the Planning Department, or that was not approved by Council. In other words, all
applications appear to be approved, sometimes with minor conditions (number of bedrooms,
parking, fire code), and sometimes with a minority of Council members dissenting.
Applications vary widely in how much evidence is presented that cottage rental will in fact fulfill
the objectives set forth in the Official Plan. The detailed, thorough application for 5225 Ontario
Avenue (August 29, 2005) showed keen sensitivity to those objectives and included many letters
of support from neighbours and testimonials about the owner's record of enhancing the overall
neighbourhood. The application was approved. In response to the briefer, more mechanical
applications for 9268 Lundy's Lane (March 5, 2007) and for 4080 Hickson Avenue (December
12, 2011), neighbours presented graphic evidence of owners' disregard for the objectives set
forth in the Official Plan. These applications were also approved.
There is substantial inconsistency in the factors considered in the planning reports on cottage
rental applications. In the case of 4733 Zimmerman and 4228 Huron St. (April 24, 2006), the
planning report emphasized, "As the owners reside next door, they will be able to supervise the
use of the dwellings and better ensure the properties are properly maintained." Planning reports
on other applications do not mention where the owner lives or whether the owner is in a position
to maintain and supervise use of the dwellings.
At least half of the planning reports make the point that city staff "will continue to monitor the
development of cottage rental dwellings to ensure that excessive concentrations do not impact
the residential character of the neighbourhood" (5057 River Road, April 16, 2007). There is no
indication of what would be an "excessive concentration" or of how the monitoring takes place.
Neighbours' objections on account of noise and other "disturbances to adjacent properties" are
disregarded as a matter of principle in the approval process, on grounds that such concerns
should be addressed under the city's noise by -law.
One criterion the Planning Department has steadfastly sought to enforce is restriction of cottage
rental to single - family dwellings. On the application for 6005, 6015, and 6027 Drummond
(September 11, 2006), Council overruled the planning report, allowing cottage rental in two
duplexes.
All or nearly all of the planning reports include a formulaic description of cottage rental
dwellings as being similar to bed and breakfasts. Key differences between cottage rental
dwellings and B &Bs, like the fact that the owner or owner's representative does not live on site,
are rarely mentioned.
Risks of current practice
Indiscriminate approval of cottage rental applications is no favour either to residents or to
responsible operators of cottage rentals. It risks the loss of the residential character of affected
Request to Council re: Cottage Rentals, February 2012, p. 3 of 3
neighbourhoods. Even a single "party house" in a block of homes is enough to begin a
downward spiral — flight of families to more stable neighbourhoods, less care for lawns and
gardens, an increasingly trashy appearance, and declining property values — until the existing
homes are bulldozed and the area redeveloped.
The matter is of urgent concern especially in the residential areas along River Road, whose
Victorian ambience and scenic splendour have been the delight of residents and visitors alike for
more than a century. On account of shifts in the tourist industry, at least a third of the 30+ B &Bs
in these neighbourhoods are currently up for sale. If the residential character of these heritage
neighbourhoods is to be maintained, the Official Plan's stipulation of careful regulation of
cottage rentals has to be taken seriously.
Conclusion
On August 29, 2005, Council directed City Staff "to undertake a study on cottage rental
dwellings and the possible need for locational criteria or licensing provisions." On January 24,
2012, Council directed staff to conduct a review of policies on cottage rental dwellings. The
present request is that approval of current and future cottage rental applications be deferred until
a thorough and up -to -date review is completed, and used as the basis of a clear, specific policy,
one that satisfies the objectives set forth in the Official Plan.
List of Cottage Rental Applications and Planning Reports Analyzed (chronological order)
August 12, 2002: 4286 and 4292 Ferguson
August 29, 2005: 5225 Ontario Avenue
April 24, 2006: 4733 Zimmerman and 4228 Huron St.
September 11, 2006: 6005, 6015, and 6027 Drummond Road
December 11, 2006: 5223 -5225 River Road
March 5, 2007: 9268 Lundy's Lane
April 16, 2007: 5057 River Road
April 16, 2007: 4339 Bampfield
May 2, 2008: 5007 River Road
December 14, 2009: 4901 and 4907 Ontario Avenue
December 11, 2011: 4080 Hickson Avenue
February 28, 2012: 5401 River Road
1(/2412012 Barb Macdonald - Letter of Objection.docx - 9e
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Professional Planning Services Inc f i ,,,: 7 15 Fairlawn Crescent
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February 24, 2012 A A - .�!_ ` x' . a� � � ,SU
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City of Niagara Falls
4310 Queen Street
P.O. Box 1023
Niagara Falls, ON
L2E 6X5
SENT ELECTRONICALLY AND VIA REGULAR MAIL
ATTENTION: Mr. Alex Herlovitch, MCIP RPP, Director of Planning
Re: Official Plan and Zoning By -law Amendment Applications
6811 Stanley Avenue (Former Loretto Academy)
Dear Mr. Herlovitch:
Professional Planning Services Inc have been retained by the Monastery of Mount
Carmel in regard to the above noted applications to amend the Official Plan and
Zoning By -law. Reverend Stanley Makacinas submitted a letter of objection dated
January 25, 2012 to your attention. The purpose of my letter is to request that City
Council defer any decision on this application for 30 days to provide an opportunity
for the developer and Mount Carmel to meet and hopefully resolve any issues. If the
application is approved following the Public Meeting the only alternative left to my
client will be an appeal to the Ontario Municipal Board. Unfortunately both
Reverend Makacinas and myself will be out of the country on February 28, 2012 and
unable to attend the Public Meeting. Would you please bring this matter to the
attention of City Council and I request to be sent notice of the passing and adoption
of the amendments if they are approved.
Respectfully,
(original signed by John Perry)
John Perry MCIP RPP
cc. Reverend Stanley Makacinas
Andrew Bryce RECEIVED
FEB 2 4 2012
PLANNING
& E EVELOPMENT
NIOUNT Ai •
CARMEL ee
i
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An ecumenical retreat and conference centre
fi= 7021 Stanley Avenue • Niagara Falls, Ontario L2G 7B7 • 905 - 356 -4113 • Fax 905 - 358 -2548
Box 767 • Niagara Falls, New York 14302 • www.carmelniagara.org
'
J '
24 February 2012
Mr. Alex Herlovitch, MCIP RPP
Director of Planning
" City of Niagara Falls
4310 Queen Street
'' P.O. Box 1023
Niagara Falls, ON L2E 6X5
' Dear Mr. Herlovitch,
Mr. Zappitelli and I met on Thursday afternoon, 23 February 2012, to
, discuss concerns and objections regarding this project. Our concerns
_, have been met and understandings have been reached between Mr.
Zappitelli and the Monastery.
' It is unfortunate that communications between all parties became
t.
mixed because of numerous time constraints.
' We wish Council well in its deliberations.
, _
r a„. , .,
f ; i �: ' `
';
Reverend Stanley E. Makacinas, O. Carm.
Director
cc: John Perry
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(2/27/2012) Dean lorfida - FW: val and simo Page 1
From: simo bielich <simojr @hotmail.com>
To: <diorfida @niagarafalls.ca >, <vpietrangelo @niagarafalls.ca >, <wmaves @coge...
Date: 2/22/2012 4:39 PM
Subject: FW: val and simo
From: simojr @hotmail.com
To: simojr @hotmail.com
Subject: FW: val and simo
Date: Wed, 15 Feb 2012 19:43:36 -0500
To Mr. Dean, Mr. Mayor and city council and staff.
Well were finally here on the agenda. As you know I'm pretty shy in front of a camera, so here is my last
plea. Year's ago my grandfather and I came to city hall to be included in the grandfather clause for an
adult entertainment license. It stated that "the same owner and same establishment may apply ", so club
Europia jumped on our wagon and they ended up going to the omb against the city. My grandfather and
Mr. Crowe at that time knew the city wanted a bylaw of four only,So they told me to obey the city's wishes
and consider my age. They told me the city will remember and one day in the near future I will have a
chance in getting the license back if something would happen to one of the clubs. My father and I went to
a meeting afterwards and were told that if something should happen in the future to the Concord or Mints
that I would be the perfect candidate, Assuming we are still at the Montrose.Even if they wanted to transfer
thier license to the montrose property.
(2/27/2012) Dean lorfida - FW: val and simo Page 2
....... _......... .
Since my father got sick and I was driving him to radiation and chemo, my knowledge of the city cutting 4
to 3 went undetected. I'm always on the ball reading the paper and when the old concord did not open as
a dance club,it alerted me. If I were to know, I would have applied. Please don't hold that against me.
Loosing my grandparents was hard and now my father, had a huge effect on my family and my awareness
of what was happening in the city.
I have had some email conversations with Mr.Labaune and he would be more than happy to sit down with
me to discuss what the police would expect of me if i would get the approval.
We believe we are allot more mature now to run this type of business. Val and my track record prove it. At
first,our body rub license was on a two year probation period. As selina Volpatti stated "its encouraging the
conditions have been met ". Since we opened, there have been no infractions with Vibrations.There has
also been no infractions on our liquor license since we repossessed the Montrose 18 yrs ago.
We are asking council to please amend the by -law for us and grant our license the same night. We meet
the city's criteria and zoning and we have applied twice now.Please note that we are giving up one adult
license for the other.No one else can offer that deal. We believe that whoever applies with us this time
should have to wait in line just like we did,the last 10 years.Val and i are wishing on the old phrase "
History always repeats its self'.Thats what are family goal is,to repeat history at THE SAMS
MONTROSE
Your friends, Val and Simo Bielich
Sam's Montrose
Thank you.
2008.02.27 03:52 PM SAMS MONTROSE 9053539847 PAGE. 2/ 7
,IAM :S v. GROVE
Feb 7'
CITY Y OI' NIA(..iARA FALLS
mkt) MAYOR AND CO1IN('I1, MEMBERS
- RI:; MON'I RUS1': 11(l'I'I-:t,
1 am new to Niagara Falls, my Family and 1 live at: 8770 Chippawa Creek
Rd. which the Montrose I lotel would be our neighbors.
I must commend the Buliche Family for struggling to keep their doors open
during these tough economics times, as when I drive by several times a week
and see their parking lot empty,
I also operate a business in this area, and 1 have never seen an economic
down Fall like at present. The factories not only closed down, they've even
demolished the buildings. Out of respect Mr. Buliche came to me and asked
if I had any concerns with him re- opening his Gentleman's Club, 1 replied
that I had no problems with that.
Dancing is a profession , not like some
people portray it to he. 11 people have a problem with it they should not he
there.
In the past years our government and the people passed a law which
allows women to walk around topless, I personally don't think that is right.
All that work and effbrt to do so and I have not see one yet, I give my full
support to the Buliche Family to reopen the Gentleman's Club.
We do not need another business to close.
Good I.,,uck Simo
Sincerely
James V. Grove
2008.02.27 03:52 PM SAMS MONTROSE 9053539847 PAGE. 3/ 7
MODERN MOSAIC LTD.
PI 1 I ii I'I Ent &, Ort,r:e. Flti20 OAl�wc_)or) r►f�.,
NIAGARA FALLS, ON I., L ANAI)A, 1..2L: hSt,
Pii<.i,i 90!- , - :y;t; :kl U.S. Mailing: 1025 MAIN ST,
i ;,x: '.4U`> 35u 4090 NIAGARA FAI I S, N.Y. 14302
February 27, 2012
Mr, Simo Bielich has approached us to determine if we objected to having a
Gentlemen's Dance Club at the Sam's Montrose Hotel located at 8675 Montrose Road,
Niagara Falls, Ontario.
We, at Modem Mosaic Ltd., do not have any objections to Mr. Bielich's attempts to have
a Gentlemen's Dance Club at the above address,
Yo rs truly,
Iii ,,,
H frbert Neme
-- i
2008.02.27 03:52 PM SAMS MONTROSE 9053539847 PAGE. 4/ 7
MONTGOMERY BROTHERS & NORTHLAND SUPPLY
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.jl •\ o/o T.T.H. MONTGOMERY CONSTRUCTION (NIAGARA) LTD. = 4 N
• / - ±` T " 8550 OAKWOOD DRIVE, NIAGARA FALLS, ONTARIO L2E 6S6
PHONE (905) 354 -2519 • FAX (905) 354 -2886 4I1
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LAND CLEANING • SITE PREPARATION • GRADING EXCAVATING • TRUCKING • TOP SOIL • MANURE
OVER 150 TYPES OF NATURAL STONE
2008.02.27 03:52 PM SAMS MONTROSE 9053539847 PAGE. 5/ 7
Valerie Bielich
8825 Montrose Rd
Niagara Falls, Ont
L2E 655
I highly recommend this license to go through since It would enhance my property value. It's nice to see
a new business trying to survive instead of another licensed Junk yard out here. Over the years the
property has groomed Its self to look like a golf course. Simo has done a lot to enhance the corner strip
of Chlppawa Creek Rd and Montrose Rd. He cares so much for the public that he asked to put street
lights in for safety.
Thank you
Valerie Bielich
2008.02.27 03:52 PM SAMS MONTROSE 9053539847 PAGE. 6/ 7
Jovan Bielich
8731 and 8755 Montrose Rd
Niagara Falls, Ont
L2E 655
I do not have a problem with the Montrose Hotel having and Adult entertainment with dancers. I own
the 2 properties that are beside the Montrose Hotel. l give my full support and recommend the city to
approve the license.
Thank you
Jovan Bielich
2008.02.27 03:52 PM SAMS MONTROSE 9053539847 PAGE. 7/ 7
Norma Morrison
8392 Oakwood Dr.
Niagara Falls, On
L2E 655
To Whom It May Concern:
I have been here for the last 50 years. My husband and I used to frequent the Montrose together. We
used to have good time there. I have no objection to adult entertainment with dancers being
revitalized at the Montrose. It would be like old times there.
Sincerely, Norma Morrison
F- 2012 -11
Niagaraaalls February 28, 2012
REPORT TO: Mayor James M. Diodati
and Members of the Municipal Council
City of Niagara Falls
SUBMITTED BY: Finance Department
SUBJECT: F- 2012 -11
Debt Management Strategy
RECOMMENDATION
That Council adopt a debt management plan, Option 2, as outlined in the report, and direct
staff to utilize the plan in the development of the 2012 Capital Budget and a long term ten
year capital plan for presentation in June, 2012.
EXECUTIVE SUMMARY
The City of Niagara Falls, like most municipalities in Ontario, faces extreme pressure for
financing its capital asset reinvestment needs. Staff have evaluated the current financial
position of the municipality with the intention of identifying a long term funding plan that
provides additional resources while minimizing the impact in current budget expenditures.
The recommended approach accomplishes these dual objectives. The debt management
strategy shown provides staff with predictability of funding for its capital works
requirements. It utilizes existing expenditures and room created by debt retirement to fund
additional projects. The success of this plan will require management oversight on project
selection and management to ensure that the municipality maximized its reinvestment
plans.
BACKGROUND
A municipality like the City of Niagara Falls, derives its ability to borrow from the Municipal
Act, 2001. The lower Tier Municipality issues debentures through the Upper Tier, in the
case of Niagara Falls, the debentures are issued by the region of Niagara. The City of
Niagara Falls, is required to repay the Region under the terms of the debenture agreement,
over the course of the debenture. The municipality is permitted to utilize construction
financing during that phase of a capital project and to incur long term debentures over a
fixed period of time.
The City of Niagara Falls has utilized debenture financing in the last decade as its capacity
to finance required capital programs has exceeded its immediate resources. Senior staff
across departments have engaged in a process to identify capital re- investment needs as
well with the introduction of PSAB 3150 as the applicable financial reporting requirements,
staff are required to identify the condition and life expectancy of the City's capital assets.
As at December 31, 2010, the net book value of the City's capital assets are $518.7
million. As a general rule, these assets will need to be replaced sometime in the future.
February 28, 2012 - 2 - F- 2012 -11
In addition, new capital investments are needed, in some cases these can be offset by
development charges or special funding from other levels of government. However,
irrespective of these other funding sources, staff are required to fund these initiatives from
existing sources if debt is not utilized.
All of these factors point to the need for a long term debt management strategy.
ANALYSIS /RATIONALE
As was cited earlier, the City of Niagara Falls has utilized debt financing in the past
decade. Attached is a list of the outstanding debt as at December 31, 2011 (Schedule A).
The need for a debt strategy has been established due to the limited funding sources
available to the City as it attempts to meet its significant capital re- investment needs. At
present, staff do not have a formal plan on the utilization of debt financing to meet its
current or future capital needs. Decisions to utilize debt as a financing option has been
made on a project by project basis. At this time, the only future commitment of debt is in
respect to the Niagara Falls Museum project. It is anticipated that a debenture will be
issued later in the year or early in 2013.
To further understand the need for a debt management plan, staff has identified for Council
the four primary sources of funding available for Capital project re- investment. Firstly,
direct transfers to capital projects from the City's operating budgets ( both taxation and
utilities). Focussing strictly on the Taxation Budget, the annual contribution is budgeted
at $4.5 Million for 2012. It is important to note, that this funding must cover all capital
assets that are not related to water and sewer infrastructure, including fleet replacements.
The second source of funding is from reserves, with the primary source of funding coming
from Development Charge reserves. This option is limited to growth related projects that
have been previously identified and included in the DC Bylaw. Usually, these projects also
require funding from the first source previously mentioned due to the benefit for existing
property owners. At present a Peer Review is being conducted on the existing Bylaw which
will provide additional information on this source of funding.
Thirdly, funding is available from other levels of government. This can take the form of
special funding usually one time funding. Examples of this funding includes the recent
contributions to the RING projects, the Convention centre and the ongoing VTS project.
Alternatively, this form of assistance can be a sustainable funding model. The present
example is the Federal Gas Tax Grant, which is a permanent source of funding and is to
be used strictly for infrastructure spending. The present level is $2.52 Million annually, and
will remain the same amount until 2014. Details of grant levels after 2014 have not been
determined at this time. The Province of Ontario provides a Transit Gas Tax Grant but the
amounts are announced annually and for the purposes of this strategy is not considered
a permanent funding source.
Lastly, the City can issue debt financing to fund capital re- investment. At present the only
municipal project identified to utilize debt funding is the Niagara Falls historical museum.
Debenture funding of $2.0M was approved at the time the project was initiated and
approved. A debenture will be issued later in 2012 once the project is completed.
In developing an effective debt management strategy, staff has been careful to seek
options that maximize opportunities for capital re- investment without significantly increasing
the operating expenditures of the City.
February 28, 2012 - 3 - F- 2012 -11
FINANCIAL /STAFFING /LEGAL IMPLICATIONS
Staff have developed three (3) debt strategies for Council's consideration:
1. Existing capital contribution from Operating Budget (Schedule B)
2. Debt Management Option 1: Old Debt for New Debt (Schedule C)
3. Debt Management Option 2: Capital Contribution Conversion to Debt (Schedule D)
The implications of the various options for a council approved debt management strategy
is identified in the attached charts.
The first alternative is the maintain no new debt issuance and is identified in Schedule B.
This schedule shows the existing debt position and repayment projections. This shows
that without additional debt financing, the debt level will be reduced over the next twenty
years. This method results in $123.8M of capital re- investment over the twenty years with
an annual contribution of $6.5M. While this results in the reduction of debt outstanding and
servicing charges over time, it does not address the capital re- investment needs of the
Municipality. This will likely result in increased future operating costs as the City staff
spends more money on repair and maintenance of its infrastructure. As a result, the
expenditure savings created by debt repayment will likely be offset with increased costs in
repairs and maintenance.
The second alternative, known as Option 1, is shown in Schedule C. This chart shows the
impact of replacing the retired debt with new debt as obligations are retired. In this
manner, additional funding for capital reinvestment projects is created without increasing
the expenditures in the operating budget. The twenty year model provides for an additional
$71 million of capital expenditures up to $195 million in total, over the same time period
when compared to the present model. Since this strategy only results in the utilization of
debt payments presently in the budget, this option provides additional expenditures
without an increase to 2012 expenditure levels.
The third alternative for Council's consideration, known as Option 2, represents an
opportunity to build on Option 1 and create further additional capital re- investment funding,
without addition budget expenditures shown in Schedule D. This option requires a gradual
transition of funding presently in the budget to debt servicing. In effect, this option
replaces direct investment in capital projects with debt servicing. In this manner, the
existing $4.5 million expenditure for capital asset reinvestment is re- distributed by
$400,000 per year to debt servicing. In this fashion, the available funding for capital
reinvestment is increased without an increase in the taxation budget. This option
increases available funding to $200M and is an increase of $4.5 Million from Option 1.
As Council is aware the province of Ontario provides guidelines to municipalities on the
maximum level of debt servicing that can be carried. The guidelines require that a
Municipality shall never have debt servicing greater than 25% of its own source funds. At
present the City debt servicing is 8.4% of own source funds. The present debt schedule
results in the ratio falling since no new debentures will be issued except the Museum.
Under Option 1 the maximum percentage remains at the current level of 8.4 %, but the
percentage declines less rapidly than in the existing model. Lastly, under Option 2, the
ratio increases during the first decade as the direct transfer is replaced by debt servicing.
In this case, the option increases to 9.8% of own source revenues.
All of these options are well below the thresholds established by the Province. As stated
February 28, 2012 - 4 - F- 2012 -11
both options 1 and 2 use current budget expenditures and do not result in a new level of
spending.
Options 2 and 3 both address some of the capital expenditure reinvestment that staff have
previously identified for Council. Prudent choices and management oversight will be
required to ensure that all projects chosen are the best decisions in the future.
LIST OF ATTACHMENTS
Schedule A - Outstanding Debt as at December 31, 2011
Schedule B - Existing Debt retirement Schedule
Schedule C - Debt Management Plan - Option 1
Schedule D - Debt Management Plan - Option 2
Recommended by:
l t
Todd H rri on, Fin
Respectfully submitted:
Ken To d, Chief Administrative Officer
CITY OF NIAGARA FALLS F- 2012 -11
OUTSTANDING DEBT ScheduleA
at December 31, 2011
Originial Debt Debt Principal
Amount Remaining at December
31, 2011
2001 Wiltshire Boulevard road Reconstruction 303,000 -
Zimmerman Avenue Road Reconstruction 550,000 -
Collins Drive & Tony Cres - curb & gutter 190,000 -
Acquiring Lands - Roberts St 1,000,000 -
Restoration - LL Battlefield 216,000 -
Millenium Trail - Phase 1 163,000 -
2002 Montrose Road Reconstruction 840,000 104,963
Front St Watermain & Sanitary Sewer 1,284,473 160,502
Community Centre 372,556 46,553
Library - Phase II 400,000 49,982
2003 Radio System - Fire 435,000 103,471
SCBA Equipment Replacement - Fire 496,000 117,981
Drummond Rd Hydro Bridge Deck Replacement 866,000 205,991
Stanley Avenue Underground (Main to McLeod) 1,000,000 237,865
Chippawa Outdoor Pool 152,000 36,156
Transit Coaches 535,000 127,258
New SW Library Branch Materials 245,000 58,277
2004 Renovations to Fire Station #1 700,000 246,843
Casino Roads Reconstruction 2,700,000 952,109
Transit Coaches 300,000 105,790
New SW Library Branch Materials 130,000 45,842
2005 Aerial # 4 Replacement - Fire 255,000 113,155
P Cummings Sports Complex 793,000 351,890
Transit Coaches 300,000 133,124
New SW Library Branch Materials 83,000 36,831
2006 Renovations to Fire Station #1 170,000 95,018
Aerial Truck Purchase 500,000 279,464
Fire Station # 6 Replacement 600,000 335,356
Radio System - Fire 70,000 39,125
Pumper Purchase - Fire 445,000 248,723
Rescue Vans Purchase - Fire 120,000 67,071
' Dorchester Rd 3,700,000 2,068,032
McRae & Stamford Streets Reconstruction 215,000 120,169
Park Street Sewer Separation 1,404,000 784,734
P Cummings Sports Complex 80,000 44,714
Redmond / Coronation 100,000 55,893
Victoria Avenue Library Automation 90,000 50,303
Transit Coaches 718,000 401,310
Downtown CIP 1,410,000 788,088
MacBain Community Centre 12,300,000 10,318,528
2007 Aerial Truck Purchase 800,000 525,857
Fire Station # 6 Replacement 800,000 525,857
Rescue # 2 - Fire 275,000 180,763
Rescue & Aerial Equipment - Fire 40,000 26,293
High Rate Treatment 200,000 131,464
Chippawa Arena Roof 275,000 180,763
Transit Coaches 430,000 282,648
2009 Renovations to Fire Station #1 424,332 348,687
Fire Station # 6 Replacement 102,289 84,054
Rescue # 2 - Fire 122,242 100,450
Pumper Purchase - Fire 426,341 350,338
Clifton / Victoria Intersection 449,689 369,524
Portage Road Traffic Calming 66,141 54,350
Woodbine Street Traffic Calming 183,831 151,060
Kalar Park 350,000 287,606
P Cummings Sports Complex 834,739 685,931
2010 Bridge Street Storm 1,796,891 1,648,264
Boys & Girls Club 2,159,000 1,980,422
Grassy Brook Pumping Station 6,562,189 6,234,080
Garner Southwest - Pumping Station 5,411,361 5,140,793
2011 EE Mitchelson Park 87,998 87,998
Oakes Park 66,580 66,580
Fire Radio System 3,110,199 3,110,199
Patrick Cummings Park 511,478 511,478
Gale Centre 32,812,500 32,561,126
74,557,698
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