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04/13/2014 ADDITIONS TO COUNCIL, TUESDAY, MAY 13, 2014 REPORTS 1. F-2014-23 - OLG Reserve Update 2. Letter from Bill Amadio, Broderick & Partners related to L-2014-10. Deputations 1. Regional Councillor Selina Volpatti will provide Council with an FCM update. 2. Niagara Regional Broadband Network power point presentation. Consent Agenda 1. MW-2014-19 - Asphalt Overlay Program Phase 2 a) Email with correction to report rfff F-2014-23 Niagarafalls May 13, 2014 REPORT TO: Mayor James M. Diodati and Members of the Municipal Council City of Niagara Falls SUBMITTED BY: Finance Department SUBJECT: F-2014-23 OLG Reserve Update RECOMMENDATION That Council authorize staff to utilize revenues from the OLG Contribution Agreement to offset projected revenue loss resulting from the change in the 2014 Regional Tax Policy. EXECUTIVE SUMMARY The City of Niagara Falls approved its operating budget on February 11, 2014. This budget included the annual tax levy based on the proposed 2014 Regional Tax Policy. The Region of Niagara is responsible for the annual tax policy, which lower tier municipalities like Niagara Falls use for the determination of their tax levy. The changes to the tax policy has resulted in a $2.943 million revenue loss. Staff are recommending that the shortfall be funded from the monies received under the Ontario Lottery and Gaming Contribution Agreement. There is sufficient funds available to cover the shorfall. BACKGROUND This report is being provided as a follow up to the Mayor's briefing on the matter noted above held on April 24, 2014. At that meeting, Council was provided details of the changes made to the Region of Niagara's 2014 tax policy and the impacts these changes have on the City's 2014 Operating Budget. Specifically, due to changes by the Region to its tax policy, the City is faced with a shortfall of approximately $2.94 million. The purpose of this report is to recommend using revenues from the OLG Contribution Agreement to offset the shortfall in 2014, since the budget is already approved, and the shortfall must be offset. ANALYSIS/RATIONALE The Region of Niagara is responsible for the development of Regional tax policy which is used by all lower tier municipalities in Niagara for the development of their tax rates and establishment of the annual City tax levy. In 2013, the Region's tax policy included the establishment of an optional property class with graduated tax rates within the optional commercial class. In 2014, the policy was reversed and the commercial residual class along with graduated taxes was eliminated. The impact on the City budget impacts two properties. The primary property impacted is the Fallsview Casino. The estimated revenue shortfall is $2.943 million. May 13, 2014 -2 - F-2014-23 It should be noted that the introduction of this tax policy was to mitigate the impact of the significant reduction in assessment returned under provincial re-assessment on the Fallsview property in 2012. The assessed value is under appeal by the City, Regional and owner with the Assessment Review Board (ARB), however, it is a small likelihood that this appeal will be resolved this year. As a result, the City is faced with a shortfall in its budget. There are two options available at this time, specifically to increase the levy so as to transfer the revenue loss across the remainder of property owners. Alternatively, the revenue loss could be mitigated by the use of revenues from the OLG Contribution Agreement. As Council is aware, the new agreement's first fiscal year ended March 31 , 2014 and only a portion of the funds have been allocated for use. Lastly, Council should be aware that unless the assessment appeal is resolved in a timely manner, the revenue loss will remain and other options like expenditure reductions and service reductions may be necessary in future budgets. FINANCIAL/STAFFING/LEGAL IMPLICATIONS The revenue shortfall results in a $2.943 million difference that must be resolved before issuing the final 2014 tax bills. The first option for the City would be to increase the tax levy for all property owners. This would result in an increase to property owners of$62 per year on the average home. As Council is aware, the approved budget would have resulted in no increases to average property owners. The second option is to utilize revenues from the OLG Contribution Agreement. The total revenues received under the first year are $21,263,695. Council has made some commitments totalling $16,000,000. The summary of the commitments to date is outlined in the attached summary. As this summary illustrates, there is a surplus available of$5,563,695. Staff is waiting for the final reconciliation of these funds from OLG so as to complete the discussion of best users for these funds. However, due to the timing of this policy change by the Region, staff require direction to utilize these funds and to proceed with final tax bills in June. Staff recommend that for 2014, option two is appropriate, however, staff recommend reviewing service levels for future budget years. LIST OF ATTACHMENTS Summary of 2013-2014 OLG Reserve Funds Recommended by: C1/4e(ii Todd Haar/zn, Dire for of Finance Respectfully submitted: , A - d t 4-„ Ken Todd, Chief • dministrati - Officer Summary of 2013-2014 OLG Reserve Fund Use F-2014-23 Total Money Received $21,263,695 Less: Approved Council Commitments Operating Budget Commitment (3,000,000) Preauthorized Engineering Designs (2,217,275) Economic Development Issue (250,000) (5,467,275) Available After Approved Commitments 15,796,420 Less: Conditional Commitments to be finalized Hospital Contribution (500,000) Debt issues avoidance (6,201,595) NRP Commitment (under review) (4,200,000) (10,901,595) Subtotal 4,894,825 Available for other uses 2014 OLG assessment reduction impact (2,945,000) Residual available for capital projects or other uses $ 1,949,825 BARRISTERS AND SOLICITORS I ;� Broderick&PartnersLLP Effective legal service in Niagara since 1951. 4625 ONTARIO AVE. May 12, 2014 P.O.BOX 897 DELIVERED NIAGARA FALLS,ON City of Niagara Falls CANADA Lee 6V6 4310 Queen Street Niagara Falls, ON LE 6X5 Attention: Dean lorfida TEL(905)356-2621 FAX(905)356-6904 Dear Mr. lorfida, bra derickpartners.c om RE: Public Notice of Meeting to be held on May 13, 2014 at the Council Chambers, City flail at which the Council of the J.J.BRODERICK Corporation of the City of Niagara Falls will consider the OX. Proposed Restrict of the Common Right of Passage and to Law Society Certified Civil Litigation Specialist Declare Surplus those Rights with respect to a Specified Area WA.AMADIO of Portage Road Our File No. 140346 .I.B.HOPKINS G.A.KIRKHAM We represent Romzap Ltd., the owner of lands that are effected by the above noted matter to he considered at Council May 13, 2014. We understand that the LM.BdeERTI matter will he adjourned to May 27, 2014 and dealt with at that time. We have Fluent in Italian&French submissions that we would like to make to Council concerning the said matter R.B.BARNS which we believe are relevant to their deliberations. M.DiGIROLAMO I would therefore respectfully request that representatives of Romzap Ltd. be z.SASKIN FiuentN Bosnian.crnaaall permitted to speak at the meeting on May 27, 2014. &Serbian Yours very truly, BRODERICK& PARTNERS LLP WILLIAM A. AMADIO WAA:sil Enclosures Dean Iorfida —wr11,. ,.. -- From: Jim Diodati Sent: Monday, May 12, 2014 1:54 PM To: Dean Iorfida; Carey Campbell Subject: FCM Conference update Dean, I asked Selina to come to City Council tomorrow night to update Council on the biggest Conference to ever come to the SCC. Can you please add her to the deputations/presentations? Thanks, Jim Sent than me Samnm,g Gx Wxc enizrtp(i 1 5/12/2014 f3NRBN 'F r REGIONAL BROADBAND NEWYORK f: r • ■ 4d !e. Or g ___ N_R8N_ Objective What are we going to do tonight: Provide a short overview of Niagara Regional Broadband Network (NRBN) and the value we bring to the Niagara Region NRBN Overview-www.nrbn.ca 2 1 5/12/2014 ANRBN History • Established in 2004,NRBN owns and operates the most extensive Fibre-optic network in the Niagara Region. • Conceived due inadequate access to the World Wide Web and the benefits that can be derived from it-the only way to change the status quo was to become involved in the creation of a world class fibre network. • Ownership of NRBN is held by City of Niagara Falls,Niagara on The Lake, Port Colborne and Grimsby through their various"holdco's" • Originally operated as an"outsource" business model,NRBN made the decision in April 2012 to operate the business with their own resources • NRBN has been the trusted provider of choice within the Region for the entire Niagara MUSH Sector(Municipal, Utilities,Schools,and Hospitals)and is the last mile service provider for the majority of all government sites,financial institutions, and large enterprise business within the Region over the past 10 years. NRBN Overview-www.nrbn.ca 3 /NRBN Insourcing • In April 2012,NRBN started the process of evolving the business model used to operate the NRBN • Previous to 2012,NRBN outsourced all activities required to run the business including Sales,Operations and Customer Support • NRBN provided oversight of the business but the actual work was completed by contractors • NRBN began the process of insourcing the work required to operate the business by hiring: • A fulltime VP and General Manager,Network Operations Technicians and Construction Coordinators • December 31,2012 at 5:00,NRBN assumed full accountability for all facets of operating the business from the outsourced contractor • NRBN began officially operating the network from within the Region January 1, 2013 • In 2013 a fulltime Contrdlranri Calac R,Marketing nirgctor were hired NRBN Overview-www.nrbn.ca 4 2 5/12/2014 Footprint NRBN k , � I1_� • ,... 1 The NRBN Network spans throughout the entire Niagara Region from Grimsby,through St.Catharines and Niagara Falls,Niagara on the Lake,down to Port Colborne,and as far east as Ft.Erie as well as having Points of Presence in Toronto and Buffalo NRBN Overview-www.nrbn.ca 5 fiNRBN The NRBN Difference • NRBN recognizes the ever growing need for organizations to move tremendous amounts of data quickly,securely and without interruption • NRBN offers fast,flawless internet services and data links between locations that are critical to efficient day to day operations • Fibre based solutions that offer scalability to support future growth • More reliable,secure and much faster than Cable,ADSL and Wireless solutions • NRBN's service offerings are the perfect solution for organizations looking for cost- effective, high bandwidth connection that provides an increased level of reliability back by Service level Agreement(SLA) NRBN Overview-www.nrbn.ca 6 3 5/12/2014 fiNRBN The NRBN Difference • NRBN only does commercial services and as a result our network only services commercial customers • Bell offers commercial and residential services using one network • Cogeco offers commercial and residential services using one network • NRBN delivers service on fibre only • Bell delivers service using fibre and/or DSL • Cogeco delivers service using fibre and/or coax cable • We bring a fibre-optic cable directly into the business and provide 100 per cent dedicated connectivity either between their location and other locations anywhere in the world • NRBN,while priding itself on being able to service the small and medium-sized businesses, is also well equipped to handle the needs of larger corporations, • The main message is that no business is too small and each is of equal importance NRBN Overview-www.nrbn.ca 7 NRBN The NRBN Difference • Summary ✓ NRBN's network offers the scalable solutions ✓ NRBN's network offers private and secure data transfers ✓ NRBN's network offers redundant and reliable infrastructure DSL Fibre To The Node Fibre To The Business 4" Z t.,�' u t ` ply O r ' 1 _ i ' r4,,a 1 { �� n v �i NRBN Overview-www.nrbn.ca B 4 5/12/2014 NNRBN Why Choose NRBN Trust • NRBN is a proven and trusted provider offering reliable service,combined with centralized in-house expertise Service • Our customers are at the heart at everything we do.We know our customers by name,understand their challenges and address them with the most up to date and innovative solutions quickly • NRBN is dedicated to providing excellent customer support while ensuring the ordering and service delivery process is seamless Growth • NRBN operates the largest fibre network in the region as well as a next generation network capable of supporting the latest technologies Community • We will drive technology change for the Niagara Region which is the community we are owned by NRBN Overview-www.nrbn.ca 9 NRBN Future Direction ____._ • NRBN's focus is the Niagara Region and we will continue to grow our network and manage our business from within the Region. • NRBN will continue to increase our network reach by continuing to invest in the region • We will be ready and able to build to keep up with the growth in demand for our services • We will continue to develop strategic partnerships with service providers that offer complementary services to NRBN • We will work with the Region and local Economic Development Officers to stimulate growth by ensuring awareness of NRBN's capabilities • NRBN will provide assistance to any group in the Region that is trying to attract new businesses to Niagara Region NRBN Overview-www.nrbn.ca 10 5 Dean Iorfida From: Selene Tudini Sent: Friday, May 09, 2014 11:48 AM To: Eric Lallouet; Dean Iorfida Cc: Geoff Holman; Selene Tudini Subject: MW-2014-19 - error on report Hi Eric, In answer to your question, perhaps this report error should be noted at Council and the limit marked up and have the report amended (if Approved will be stamped as amended). Dean — MW-2014-19, page 2 under Analysis section (should read Victoria Avenue not Valley Way): URBAN SURFACE TREATMENT: Jepson Street from Valley Way Victoria Avenue to Slater Avenue I can mark this on the V drive to this page if you like, but will not touch it unless you say it is okay. Selene Tudini Executive Coordinator Municipal Works City of Niagara Falls ;..ee- 5 99- , 5 Box '223 \ : -.. ___ 3X 3995 The_? 2' ex- ::x 239.299 3348 studini©niagarafalls ca From: Eric Lallouet Sent: Friday, May 09, 2014 11:23 AM To: Selene Tudini Cc: Geoff Holman Subject: RE: ITS ABOUT TIME - Jepson St Road Condition (2014007922) Yes. This must be an error on the report. The contract specifies Jepson from Victoria to Slater. Can this be updated or changed? From: Selene Tudini Sent: Friday, May 09, 2014 11:14 AM To: Eric Lallouet Cc: Geoff Holman Subject: RE: ITS ABOUT TIME -Jepson St Road Condition (2014007922) So the council report is wrong then? It says Valley Way to Slater only. Just need to know because the Mayor will ask that at Council, why it is on the report that way. Selene Tudini Executive Coordinator Municipal Works 1