2005/12/12' ~ CORPORATE SERVICES COMMITTEE AGENDA
TENTH MEETTNG
Monday, December 12, 2005
Council Chambers - 6:00 p.m.
Staff Contact:
1. Minutes of the November 21, 2005 Meeting
2. Reports:
F-2005-56 - 2006 General Insurance Report Ken Burden
F-2005-57 - Treasurer's Write-off Todd Harrison
F-2005-58 - Lundy's Lane Factory Outlet Mall Todd Harrison
Roll No. 2725-090-007-29000-0000
F-2005-59 - Property Tax Deferral for Low-Income Ken Burden
Seniors and Low-Income Disabled Persons
3. 2006 General Purposes Budqet
Power Point Presentation by the Chief Administrative
Officer and the Executive Director of Corporate Services
(A copy of the presentation will/~e forwarded prior to the meeting)
4. New Business
5. Adjournment
i 11 U
' . MINUTES
CITY OF NIAGARA FALLS
CORPORATE SERVICES COMMITTEE
NINTH MEETING
MONDAY, NOVEMBER 21, 2005
COUNCIL CHAMBERS
6:50 P.M.
PRESENT: Mayor Ted Salci, Alderman Wayne Campbell, Chair; Aldermen Jim
Diodati, Carolynn Ioannoni, Vince Kerrio, Joyce Morocco, Victor
Pietrangelo, and Janice Wing
REGRETS: Alderman Selina Volpatti
STAFF: John MacDonald, Tony Ravenda, Dean Iorfida, Adele Kon, Karen Kelly,
Ed Dujlovic, Ken Burden, Patrick Burke, Joanna Daniels
PRESS: Corey Larocque, Niagara Falls Review
CONFLICTS: Aldermen Kerrio and Morocco indicated a conflict with Niagara Falls
Tourism.
1. MINUTES:
MOVED by Alderman Wing, seconded by Alderman Pietrangelo, that the minutes of
the November 7, 2005, meeting be adopted as recorded.
Motion Carried Unanimously
2. 2006 Funding Requests
Niagara Transit and Niagara Chair-A-Van
Mr. Bart Maves, Chairman of the Niagara Transit Commission Board, Terry Librock,
General Manager, and several Board members were in attendance.
MOVED by Alderman Diodati, seconded by Alderman Kerrio, that the 2006 funding
request for the Niagara Transit and Niagara Chair-A-Van be referred to final budget
deliberations.
Motion Carried Unanimously
-2-
Niagara Falls Public Library
Mr. Blake Mclntyre, Member of the Niagara Falls Pub#c Library Board, presented the
Library's request for 2006 Funding. Mr. Joe Longo, Chief Librarian, and several
members of the Board were also in attendance.
MOVED by Alderman Ioannoni, seconded by Alderman Pietrangelo, that the 2006
funding request for the Niagara Falls Public Library be referred to final budget
deliberations.
Motion Carried Unanimously
Winter Festival of Lights
Mr. Dino Fazio, General Manager of the Winter Festival of Lights, presented the
Festival's 2006 request for funding.
MOVED byAIderman Morocco, seconded byAIderman Diodatl, that the 2006 funding
request for the Winter Festival of Lights be referred to final budget deliberations.
Motion Carried Unanimously
Niagara Falls Tourism
Ms. Ann Pierce, Chair of Niagara Falls Tourism addressed the Committee. Several
board members were also in attendance. Ms. Pierce asked the Committee to
consider giving City staff the authority and direction to work with Niagara Falls
Tourism Staff, their Board and key stakeholders on a new structure.
MOVED by Alderman Ioannoni, seconded by Alderman Wing, that Staff investigate
options for Niagara Falls Tourism including access to OPG Tourism Marketing Fund,
possible partnership with the Chamber of Commerce, and assistance from City
administration staff.
Motion Carried Unanimously
Conflict as previously noted by Aldermen Kerrio and Morocco
3. REPORTS
Report F-2005-52 - Major Receivables Quarterly Report
MOVED by Mayor Salci, seconded by Alderman Wing, that the Major Receivables
Quarterly Report be received for information.
Motion Carried Unanimously
-3=
Report F-2005-53 - Niagara District Airport Commission
MOVED by Alderman Wing, seconded by Mayor Salci, that the 2005 approved grant
amount of $85,600 for the Niagara District Airport Commission be affirmed.
Motion Carried Unanimously
4. CORRESPONDENCE
MOVED by Alderman Kerrio, seconded by Alderman Pietrangelo, that the request for
support from the Niagara Falls International Marathon be received and filed.
Motion Carried Unanimously
5. NEW BUSINESS
MOVED by Mayor Salci, seconded by Alderman Morocco, that staff investigate the
tax deferral for Iow-income seniors and Iow-income disabled residents who are
affected by property tax increase due to higher assessment.
Motion Carried Unanimously
6. ADJOURNMENT
There being no further business, the meeting adjourned at 8:05 p.m.
Corporate Services Department F-2005-56
Finance Kenneth E. Burden
~&. 4310 Queen Street Director
The
City
of
Niagara
Falls
Niagara Falls, ON L2E 6X5
Canaa?.~,~~ web site: www.city.niagarafalls.on.ca
~'~~~' - I- Tel: (905) 356-7521
Fax: (905) 356-2016
E-mail: kburden@city.niagarafalls.on.ca.
December 12, 2005
Alderman Wayne Campbell, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: F-2005-56 - General Insurance Report
RECOMMENDATION:
1. That the Corporate Services Committee approve the 2006 Comprehensive Insurance Program
from Frank Cowan Co. Ltd. at an annual premium of $825,731 (2005 - $685,251), plus
applicable taxes.
2. That the Corporate Services Committee direct staff to investigate the impact that may result
from increasing the deductibles for some of the City's insurance policies.
BACKGROUND:
The City's comprehensive insurance program is reviewed annually for the purpose of updating and
revising the type and amount of insurance. The cost of the annual premiums for 2006 presents an
increase of approximately 20.5% or $140,480 (taxes extra).
The annual review showed several reasons why the annual premium has increased. Frank Cowan
Company has advised staff that the Canadian Property & Casualty Insurance marketplace continues
to be susceptible to losses that have outpaced premiums coupled with reduced investment income.
Increased storm and natural catastrophe activity in 2005 will put upward pressure on rates. Insurance
markets continue to focus on specific types of business risks. This has reduced the number of
specialty insurers who are willing to underwrite risks such as public entity. As a result, all insurance
purchasers are affected.
The public sector has experienced significant losses in the past few years. Some of these losses have
been driven by landmark cases, but overall, frequency and severity of claims has increased
dramatically. As well, the overall cost of claims, which takes into account escalating court awards,
claims administration expenses and the ever-increasing replacement costs of assets, has continued to
Working Together to Serve Our Community
Clerk's · Finance · Human Resources · Information Systems · Legal · Planning & Development
December 12,2005 - 2 - F-2005-56
rise at a rate in excess of the premium growth. In addition, insurers and re-insurers have become
extremely cautious about public entity liabilities because of the continuing downloading of services
by the provincial government, namely roads and ambulance services. Insurers are now experiencing
the impact of the claims from these downloaded services and the impact they are having on the public
entity portfolio.
The terms and conditions for the 2006 Renewal will be subject to the following:
· Continued support of the markets
· No major changes in the loss experience of the City's portfolio
· No major changes in the re-insurance market that would adversely affect the underlying
insurance.
Attached to this report is a summary of insurance coverages, premium comparisons to 2005, and a
summary of market conditions.
Over the past year, as per Council's direction, Staff has organized a new risk management team to
implement a full risk management program. The program focuses on minimizing the risk of loss by
reviewing existing standards of maintenance and security; identifying and evaluating new risks and
developing effective measures to minimize these risks, developing a hazard reporting system;
reviewing insurance claims, and reviewing the adequacy of insurance coverages.
The Frank Cowan Company Limited has recommended that the City consider reducing the premium
cost by increasing deductible levels as appropriate. The cost savings could sum up to a total of
$28,179 depending on which deductibles are increased and by how much. Staff advises that increasing
deductibles requires the City to self-insure to the higher deductible. As a result, claims cost may
increase due to the City's increased financial responsibility.
For comparison purposes, set out below are optional deductible programs that the City may wish to
consider:
Present Optional Credits Optional Credits
Classification Deductible Deductible Available Deductible Available
Property $10,000 $25,000 $ 5,827 $50,000 $10,378
(Building, Contents Equipment
& Watercraft Floater)
Boiler & Machinery 10,000 25,000 607 50,000 1,490
Automobile Fleet
(Third Party & Direct
Compensation) 10,000 25,000 3,486 50,000 5,886
(All Perils) 10,000 25,000 4,748 50,000 10,425
$14,668 $28,179
· December 12, 2005 - 3 - F-2005-56
Recommended by: Respectfully submitted: /,
K.E. Burden / / Jolm MacDonald
Director of Finance ~ Chief Administrative Officer
Approved by:
T. Ravenda
Executive Director of Corporate Services
PROGRAM SUMMARY
SUMMARY OF COVERAGES LIMITS/AMOUNTS
Municipal Liability
Limit of Protection per occurrence $ 20,000,000.
(No Annual Aggregate Limit)
Third Party Claims Deductible including expenses $ 50,000.
Sewer Backup Deductible including expenses $ 50,000.
Wrongful Dismissal (defence costs) Limit per claim $ 250,000.
Annual Aggregate Limit $ 250,000.
Deductible $ 5,000.
Malpractice Liability Included
Errors and Omissions
Limit of Protection per claim $ 20,000,000.
(No Annual Aggregate Limit)
Deductible including expenses $ 50,000.
Non-Owned Automobile
Limit of Protection per occurrence $ 20,000,000.
(No Annual Aggregate Limit)
Legal Liability for Non-Owned Vehicles (S.E.F. No. 94)
All Perils Physical Damage Limit $ 250,000.
Deductible $ 500.
Environmental Liability
Liability of Protection per claim $ 3,000,000.
Annual Aggregate Limit $ 4,000,000.
Self-Insured Retention $ 50,000.
Comprehensive Crime
Commercial Blanket Bond $ 1,000,000.
Counterfeit Paper Included
and Depositors' Forgery Included
Audit Expense (Sub-Limit $100,000.) Included
Money and Securities - Blanket any Location $ 100,000.
Excess on Securities $ 100,000.
Frank Cowan Company Limited
PROGRAM SUMMARY
SUMMARY OF COVERAGES LINIITS/AMOUNTS
Councillors' Accident - Mayor and Eight Members of Council
Accidental Death & Dismemberment $ 200,000.
(No Annual Aggregate Limit and No Deductible)
Weekly Income - Total Disability $ 500.
Weekly Income - Partial Disability $ 250.
Firefighters' Accident - Ninety-Six Members of the Volunteer Fire Department
Accidental Injury, Death & Dismemberment $ 100,000.
(No Annual Aggregate Limit and No Deductible)
Includes Comprehensive Benefits package Refer to policy
Municipal Conflict of Interest
Percentage of Legal Fees and Expenses 100%
Maximum Limit of Reimbursement per claim $ 100,000.
(No Annual Aggregate Limit)
Legal Expense
Percentage of Legal Fees and Expenses 100%
Maximum Limit of Reimbursement per claim $ 100,000.
Annual Aggregate Limit $ 250,000.
General Liability - Recreation Affiliates
Limit of Protection per occurrence $ 5,000,000.
Deductible $ 1,000.
Non-Owned Automobile - Recreation Affiliates
Limit of Protection per occurrence $ 5,000,000.
(No Annual Aggregate Limit)
Legal Liability for Non-Owned Vehicles (S.E.F. No. 94)
All Perils Physical Damage Limit $ 100,000.
Deductible $ 500.
Frank Cowan Company Limited
PROGRAM SUMMARY
SUMMARY OF COVERAGES LIMITS/AMOUNTS
Property Insurance (including Data Processing Insurance)
Total Sum Insured * $ 92,831,207.
Valuable Papers $ 500,000.
Accounts Receivable (other than Data Processing) $ 500,000.
Extra Expense (other than Data Processing) $ 500,000.
Business Interruption
Rent or Rental Value Form $ 500,000.
Gross Revenue Form $ 1,231,300.
Data Processing
System and Equipment $ 2,323,600.
Media $ 135,000.
Extra Expense $ 100,000.
Watercraft Floater $ 194,500.
Deductible $ 10,000
Exceptions:
- Data Processing $ 2,500.
- Day Care Building, 5027 Drummond Road $ 2,500.
- Museum Contents including Artifacts $ 2,500.
- Furnishings of Niagara Falls Professional Fire-Fighters Association Local 528 $ 2,500.
- History Books "The Niagara Portage Road" $ 2,500.
- Educational Toy "FLASHY" $ 2,500.
*Note: Please refer to the insurance contract for an itemized list of assets containing specific limits of
insurance or that are excluded from the policy.
Frank Cowan Company Limited
I [ Il H T
PROGRAM SUMMARY
SUMMARY OF COVERAGES LIMITS/AMOUNTS
Boiler and Machinery
Limit per Accident - Comprehensive $ 50,000,000.
Extra Expense $ 500,000.
Water Damage $ 500,000.
Ammonia Contamination $ 500,000.
Expediting Expenses Included
Hazardous Substance (including PCB Contamination) $ 500,000.
Business Interruption- Loss of Profits (Gross Revenue)
- Niagara Falls Memorial Arena, 5145 Centre Street, Niagara Falls, Ontario $ 319,800.
- Stamford Memorial Arena, 6570 Frederica St., Niagara Falls, Ontario $ 634,000.
- Jack Bell Arena, 6570 Frederica St., Niagara Falls, Ontario
- Chippawa Willoughby Memorial Arena, 9000 Sodom Rd., Niagara Falls, Ontario $ 207,500.
- McBain Community Centre, 71560 Montrose Road, Niagara Falls, Ontario $ 42,000.
- Municipal Swirnm/ng Pool, F.H. Leslie Park, 5250 Valley Way, $ 28,000.
Niagara Falls Ontario
- Municipal Swimming Pool, Mitchelson Park, Dorchester Road, Niagara Falls, Ontario
- Swimming Pool at Prince Charles Park, 6320 Arad Street, Niagara Falls, Ontario
- Office, Lunchroom and Maintenance Building, 4501 Stanley Avenue, Niagara Falls, Ontario
Spoilage - Goods under Refrigeration $ 50,000.
Professional Fees $ 500,000.
Data and Media $ 10,000.
By-Law Cover Included
Deductible $ 10,000.
Frank Cowan Company Limited
PROGRAM SUMMARY
SUMMARY OF COVERAGES LIMITS/AMOUNTS
Automobile Fleet
Liability Limit $ 20,000,000.
Deductibles
Section 3 (Third Party) $ 10,000.
Section 6 (Direct Compensation) $ 10,000.
Ail Perils $ 10,000.
Garage Automobile
Third Party Liability Limit $ 20,000,000.
Customer Vehicles
Collision Limit $ 200,000.
Deductible $ 500.
Specified Perils Limit $ 300,000.
Deductible $ 500.
2006 - 2007 ANNUAL PREMIUM $ 825,731.
PLUS APPLICABLE TAXES
NOTE: Value Added Risk Management Services are included in the total premium.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
Frank Cowan Company Limited
ExecuQve Director of Corporate Services
COST ANALYSIS
EXPIRING RENEWAL
PROGRAM PROGRAM
2005-2006 TERM 2006-2007 TERM
MUNICIPAL LIABILITY $400,914 521,188
ERRORS AND OMISSIONS 39,971 41,970
NON-OWNED AUTOMOBILE 333 333
FOLLOW FORM EXCESS LIABILITY 18,918 21,770
ENVIRONMENTAL LIABILITY 38,118 40,024
COMPREHENSIVE CRIME 3,993 3,993
COUNCILLORS' ACCIDENT 558 558
FIREFIGHTERS' ACCIDENT 4,800 4,800
CONFLICT OF INTEREST 1,170 810
LEGAL EXPENSE 5,738 5,738
GENERAL LIABILITY (RECREATION AFFILIATES) 5,542 6,651
NON-OWNED AUTOMOBILE (RECREATION AFFILIATES) 100 100
PROPERTY/DATA PROCESSING 76,084 84,195
BOILER AND MACHINERY 6,680 6,695
OWNED AUTOMOBILE 78,829 82,770
GARAGE AUTOMOBILE 2,116 2,116
EXCESS AUTOMOBILE (OWNED AND GARAGE) 1,387 2,020
ANNUAL PREMIUM $685,251 825,731
PLUS APPLICABLE TAXES
MARKET CONDI'T1'ONS
· Municipal Liability remains a huge challenge to the Insurers
· 2004 was a record year for Municipal Liability claims
· By the end of the third quarter of 2005, claims had already exceeded the level of
the entire 2004 claims results
· The number of losses over $100,000 in 2005 is more than double than in 2004
· Change in reserving philosophy - today's premiums to pay for today's losses
Bottom Line
· Liability rates are not adequate to provide for the losses
· Loss frequency and severity continues to rise
· Plaintiff lawyers are suing for new forms of damages such as Loss of Interpersonal
Relationships and Guardianship expenses
· The Ontario Trial Lawyers Association is a very powerful force. They have stats and
bios on Insurers and their strengths and weaknesses geared for training others.
· Class Actions are Increasing
· Down loaded services to Municipalities - Roads, POA, Ambulances
· Aging infrastructure is leading to many more claims
· Population growth
· Weather-related catastrophes
· The "once in a lifetime" event is occurring every few years
· Building Construction costs have escalated
Corporate Services Department F-2005-57
Finance Division Kenneth E. Burden
The Cify of Director
4310 Queen Street
Niogoro Foils P.O. Box 1023
CCIDOCiQ Niagara Fails, ON L2E 6X5
web site: www.city.niagarafalls.on.ca
Tel.: (905) 356-7521
Fax: (905) 356-2016
E-mail: kburden@city.niagarafalls.on.ca
December 12, 2005
Alderman Wayne Campbell, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: F-2005- 57 - Treasurer's Write-Off
RECOMMENDATION:
That the property tax accounts listed in this report be removed from the City's accounts.
BACKGROUND:
Section 354 (2) of The Municipal Act states that
"The Treasurer of a municipality shall remove unpaid taxes from the tax roll if,
(a) the council of the local municipality, on the recommendation of the treasurer,
writes off the taxes as uncollectible, or
(b) the taxes are no longer payable as a result of tax relief under section 319, 345,
357, 358, 362, 365 (1) or 365 (2) or a decision of any court.2001, c. 25, s.
354 (2); 2002, c. 17, Sch. A, s."
Staff has attempted to collect the following tax accounts, and has determined that the properties were
either assessed incorrectly, or deemed to be exempt.
Properties Assessed Incorrectly or Exempt
The following properties should be written off.
Working Together to Serve Our Community
Clerks · Finance · Human Resources · Information Systems · Legal · Planning & Development
December 12, 2005 - 2 - F-2005-57
Roll No. Name & Address Year Amount Reason
060 003 13100 King's hm Motor Lodge 2001 $ 804.50 Assessed Incorrectly
5839 Stanley Avenue
060 003 09200 King's Inn Motor Lodge 2001 $ 387.00 Assessed Incorrectly
5512 Spring Street
090 002 39560 527786 Ontario Limited 2002 $ 80.55 Assessed Incorrectly
Barrett Crescent
100 004 12801 Transport Canada 1996 $2,293.76 Assessed h~correctly
Taylor Road WS Rear
Total $3,565.81
The portion of City taxes has been included in the General Purposes Budget. This amount includes
taxes and accrued penalties totaling $2,344.03. The balance of $1,221.78 will be recovered from the
Region and School Boards.
Prepared by: Respectfully submitted:
/,
Todd Harrison / Jolm MacDonald
Manager of Finance , Chief Administrative Officer
Recommended by:
K. E. Burden
Director of Finance
Approved by:
T. Ravenda
Executive Director of Corporate Services
Corporate Services Department F-2005-58
Finance Division Kenneth E. Burden
The City of 4310 Queen Street Director
Niagaro Falls~ P.O. Box 1023
Canada Niagara Falls, ON L2E 6X5
web site: www.city.niagarafalls.on.ca
Tel.: (905) 356-7521
Fax: (905) 356-2016
E-mail: kburden@city.niagarafalls.on.ca
December 12, 2005
Alderman Wayne Campbell, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: F-2005-58 - Lundy's Lane Factory Outlet Mall
Roll No. 2725-090-007-29000-0000
RECOMMENDATION'
That the Corporate Services Committee approve the change required to the 2004 mmualized taxes of
the above-mentioned property for the purposes of collecting the 2005 property taxes.
BACKGROUND:
Property taxes levied by a municipality in a year are determined in an integrated approach with many
stakeholders. The Provincial government, through the Municipal Act and associated legislation,
provides the framework for municipalities to levy and bill property taxes in a year. The Regional
Municipality of Niagara is empowered to provide tax policy, including the establishment of tax ratios
between property tax classes for lower-tier municipalities, including Niagara Falls. The Municipal
Property Assessment Corporation (MPAC) provides the assessed values of each property from which
the municipalities determine the taxation levy in a year. The City of Niagara Falls detenrfines its
required levy, prepares and sends individual tax bills as well as collecting billed amounts for itself, the
Region and the local School Boards. In the determination of its responsibility, the Regional Municipality
of Niagara and the City of Niagara Falls utilize the Ontario Property Taxation Analysis (OPTA) pro,am
in the determination of the taxation levels for properties within the capped classes.
In the determination of the 2005 tax levies for properties within the capped classes, OPTA staff
identified a clerical error in the 2004 annualized taxes of the above-noted property. Amaualized taxes
are essential to determine a property owner's property tax levy, as these represent the starting point for
all properties in the capped class. The requirement to correct the 2004 annualized taxes for this property
resulted from an error made by MPAC on the assessment returned for the property. Attached is a copy
of a letter from MPAC identifying the error made. As allowed by Section 359 (1) of the Municipal Act,
Working Together to Serve Our Comlnunity
Clerks · Finance · Human Resources · Information Systems · Legal · Planning & Development
December 12, 2005 - 2 - F-2005-58
the municipality is afforded an opportunity to correct prior years' annualized taxes so that the taxation
levy for future years is correct on a go-forward basis. The impact of the correction to the 2004
mmualized taxes resulted in an increase to the taxes billed for 2005. The 2005 tax levy increased to
$1,168,566, including BIA charges, from $513,225 in 2004. As a result of the COlTection, the capping
protection for the owner has decreased from $919,133 in 2004 to $297,975 in 2005.
Lastly, Section 359 (1) requires that the municipality notify the affected ratepayer and provide that
ratepayer an opportunity to discuss the matter before City Council. Attached is a copy of said
notification. Based on the action steps taken, the Finance Division believes all necessary actions have
been performed to meet the requirement of the legislation in Section 359 (1) and recommends that
Council authorize the changes required.
Prepared by: Respectfully submitted:
. t'1'/ ~..''
T. Harrison / John MacDonald
Manager of Finance /', Chief Administrative Officer
Reconqmended by:
K. E. Burden
Director of Finance
Approved by:
T. Ravenda
Executive Director of Corporate Services
November 2, 2005
City of Niagara Falls
4310 Queen st.,
P.O. Box 1023
Niagara Falls, ON L2E 6X5
Re:. 75_0.0 Lund.v's Lane. Nia~,a,r,a, FalLs Roll Number: 27.2.5=0,9,0 007 29000
In reference to thc property known as 7500 Lundy's Lane in thc City of Niagara Falls, it
has come to the attention of MPAC that a factual error occurred and supplementary assessments
should have faken place for the 2000 tax year.
The documentation of changes to this property has been submitted to the City of Niagara
Falls.
Respect~hlly,
Senior Valuation Analyst
MPAC
~O'd IIOI GS& G~S 0~ INBWSSBSS~ ~O~±N~a ~:SI S00~-0I-AON
I i Il IN
~ Corporate Services Department
The City of Finance Division Kenneth E. Burden
4310 Queen Street Director
Niagara Falls lJ~,~' P.O. Box 1023
CQnQd~l~~ Niagara Falls, ON L2E 6X5
web site: www.niagarafalls.ca
~11~~-l ~ Tel: (905) 356-7521 Ext. 4324
Fax: (905) 356-0759
E-maih afelicetti@niagarafalls.ca
November 23, 2005
Lundy's Lane Portfolio Inc
3625 Dufferin St Suite 500
Downsview ON M3K 1N4
Dear Sir(s):
re: Roll No. 2725 090 007 29000 0000
7500 Lundy's Lane, Niagara Falls ON
In reference to the above mentioned property, it has come to the attention of The Municipal Property
Assessment Corporation (MPAC) that a factual error occurred and supplementary assessments
should have taken place for the 2000 tax year. This correction was made on a go forward basis under
the provisions of Section 359.1 of the Municipal Act, 2001 for the 2005 taxation year which resulted
in a correction to the 2004 Annualized Taxes that was used for the Bill 140 capping adjustment for
2005.
This letter is notification that this matter will be discussed at the Niagara Falls City Council Meeting
on December 12, 2005 in Council Chambers, located at 4310 Queen Street, Niagara Falls.
If you have any questions concerning the above please feel free to contact me.
Yours truly,
A. Felicetti
Manager of Revenue
c. Goodmans LLP
250 Yonge St Suite 2400
Toronto ON M5B 2M6
Attn: Melissa Muskat
Working Together to Serve Our Community
Clerk's · Finance · Human Resources · /nformation Systems · Legal · Planning & Development
Corporate Services Department F-2005-59
The City of Finance Division Kenneth E. Burden
4310 Queen Street Director
Niagara Fails P.O. Box 1023
Canada Niagara Falls, ON L2E 6X5
web sJte: www.cJty.niagarafalls.on.ca
Tel.: (905) 356-7521
Fax: (905) 356-2016
E-maih kburden@city.niagarafalls.on.ca
December 12, 2005
Alderman Wayne Campbell, Chair
and Members of the Corporate Services Committee
City of Niagara Falls, Ontario
Members:
Re: F-2005-59 - Property Tax Deferral for Low-Income
Seniors and Low-Income Disabled Persons
RECOMMENDATION:
For the information of the Corporate Services Committee.
BACKGROUND:
On November 21,2005, the Corporate Services Committee requested an information report with regard
to the Regional policy on property tax deferral relief for Iow-income seniors and low-income disabled
persons.
This policy was brought into force in 1998 and responds to the need of providing assistance to those
individuals requiring assistance in the payment of property taxes. The following is an excerpt from the
Regional Niagara publication "Understanding Regional Tax Policies ".
Bill 140 - Continued Protection ]'or ProperS_ Taxpayers Act, 2000
Bill140 continues the existingprotection measures allowing Regional Council to enact by-laws
to defer; cancel or provide other relief to low-income seniors or low-income disabled persons
with respect to all or part of the increases in municipal and education taxes resulting from
changes to the assessment of residential~farm properties.
Further, Bill 140 amends the existing protection to include relief from all property tax
increases, including municipal budgeta~T increases as well as assessment-related tax increases
for the year of assessment.
The provisions of Bill 140, the Fair Municipal Finance Act require that Regional Council pass
a by-law to defer, cancel orprovide other relief to low-income seniors or low-income disabled
persons with respect to all orpart of the increases in municipal and education taxes. Regional
Council has the flexibility to determine the amount of relief, the type of relief, the rate of
interest applicable to deferrals, and to define the eligibility criteria.
[Forking Together to Serve Our Community
Clerks · Finance · Human Resources · Information Systems · Legal · Planning & Development
December 12, 2005 - 2 - F-2005-59
Policy - Tax Relief for Low-Income Seniors attd Low-Income Disabled Persons
In 1998, Regional Council adopted a policy that allows for the deferral of assessment-related
tax increased greater than $200per year. The deferred taxes must be paid u, ithin three years
fi'om the date of the deferral.
Regional Council established the following eligibiliO, criteria:
Low-Income Disabled Person: bz receipt of assistance paid under the General Welfare
Assistance Act; or in receipt of a disabilio2 amount paid under the Family Benefits Act
(Ontario).
Low-Income Senior: Over the age of 65 years, and in receipt of the monthly Guaranteed
Income supplement provided under Part II of the Old Age SecuriO; Act (Canada)
The deferral attracts no interest charges.
As this is a Regional tax policy, it applies to all lower-tier municipalities within the Niagara region.
Despite being a Regional tax policy, the administration is handled by the lower-tier finance division or
municipal treasurer's staff. A sample application is attached.
Please note that the tax assistance is only provided as a deferral, and also only applies to the tax increase
that results from an increase in property assessment.
Recommended by: Respectfully submitted:
K. E. Burden ,./ John MacDonald
Director of Finance ~/' Chief Administrative Officer
Approved by:
T. Ravenda
Executive Director of Corporate Services
Attach.
REGIONAL MUNICIPALITY OF NIAGARA
(By-law 87-200'1)
APPLICATION FOR DEFERRAL OF LOCAL TAXES FOR
LOW-INCOME SENIORS AND LOW-INCOME DISABLED HOMEOWNERS
IROLL # (for office use only) I
STREET ADDRESS
CITY POSTAL CODE -
TELEPHONE ( )
OWNER SPOUSE (if applicable)
LAST NAME
-'IRST NAME / / / /
~'EAR OF BIRTH (MM/DD/YY)
OLD AGE SECURITY # (if applicable)
IN RECEIPT OF (or application pending) Please indicate (X) appropriate eligibility
GUARANTEED INCOME SUPPLEMENT II I I
FAMILY BENEFITS ACT J I I I
GENERAL WELFARE ASSlSTANCE ACT I I I I
NOTE: Written proof of receipt of benefits or application for benefits must be attached to this application. An [
example of appropriate proof of receipt of benefits is a photocopy of a recent cheque. If an application for benefits is
¢ending approval or under appeal, a photocopy of the completed application must be attached to this application.
STATEMENT
(please check appropriate eligibility)
------~1 or my spouse is 65 years of age or older and in receipt of the monthly Guaranteed Income Supplement
'provided under Part II of the Old Age Security Act (Canada). I occupy residential property in the Region
of Niagara and have been assessed as Owner of such property. I occupy the residential property as my
principal residence for which the tax deferral is applied for, and; have been assessed as owner of such
residential property in the Regional Municipality of Niagara.
-'-'--'~1 or my spouse is disabled and in receipt of benefits under the Family Benefits Act or assistance under the
General Welfare Assistance Act. I occupy the residential property as my principal residence for which the
tax deferral is applied for, and; have been assessed as owner of such residential property in the .Regional
· Municipality of Niagara.
I I hereby acknowledge that the information provided by me is correct and the Municipality may verify any and all
information pertaining to this application.
IDate of Application Signature of Applicant Signature of Spouse
Revised: 2001-04-19
DETAILS OF TAX DEFERRAL
1. The applicant, or spouse, must occupy the property as a personal residence and have been
assessed as owner of the occupied residential property.
2. The applicant, or spouse, must be in receipt of benefits from one of the programs as outlined
on the reverse.
3. Applicants must supply proof of receipt of benefits from the programme specified on the
application. An example of which would be a photocopy of the most recent cheque received
from the specified program.
4. Eligible applicants will be allowed to defer $200 or more of their annual property taxes
which resulted from a change to the assessment of the residential property pursuant to the
requirements the Municipal Act of Ontario, 1997 as revised.
5. The applicant shall be liable for any administration and/or registration fees as determined by
the Municipal Treasurer.
6. In the event a tax deferral is granted, no interest charges will be added to the amount
deferred.
7. The deferred taxes must by repaid in three years from the date the deferral is allowed.
8. To maintain eligibility the applicant's property taxes must be cun'ent.
9. In the event of transference of title of the property, the remaining amount of all taxes
deferred shall become due and payable on the date of transference of such title.
10. Earlier repayment could be based on an individual taxpayers financial circumstance or as a
result of a tax sale of the property.
11. All deferred taxes become due on the disposition of the property.
12. In the event that it is later determined that the applicant is not eligible for deferral of taxes, as
indicated under the eligibility criteria, then the deferred taxes will be withdrawn and the
applicant must repay the deferred taxes in full, inclusive of all other costs as determined by the
Municipal Treasurer.
Revised: 2001-04-19
Bill 91 THE REGIONAL MUNICIPALITY OF NIAGARA
BY-LAW NO. 87-20Ol
A BY-LAW TO ESTABLISH CRITERIA FOR
APPLICATIONS FOR TAX DEFERRALS BY LOW-
INCOME SENIORS AND LOW-INCOME DISABLED PERSONS
WHEREAS Section 373 of The Municipal Act, R.S.O. 1990, C.45, as amended,
provides that tax. relief in certain instances must be given to those owners who
are, or whose spouses or whose same-sex partners are:
(a) low-income seniors as defined in the by-law; or
(b) Iow-income persons with disabilities as defined in the by-law.
THEREFORE the Council of The Regional Municipality of Niagara enacts as follows:
1. In this, by-law:
"assessment-related tax increases" means tax increases beginning in 1998
or beginning in a subsequent taxation year for which the day or one of the
days as of which current value is determined for the purposes of assessment
for the taxation year is different from the corresponding day or days for the
previous taxation year;
"owner" means a person assessed as an owner, or a spouse of such owner
or a same-sex partner of such owner.
2.1 All owners who meet the eligibility criteria set out in Section 3 hereof shall
be entitled to a deferral of all or that portion of their property taxes which
result from a change to the assessment of their residential property pursuant
to The Municipal Act, as amended.
2.2 Eligibility for the said tax deferral is subject to a minimum increase resulting
from the change set out in Section 2.1 of $200.
3.1 That, to be eligible for a tax deferral, an applicant must meet the following
ownership, occupancy, income level and age criteria:
(a) The owner/occupant/applicant must occupy the property as their
principal residence for which the tax deferral is applied for, and; has
been assessed as owner of such residential property in the Regional
MunicipalitY' of Niagara.
Bill 91
(b) An owner, as defined, may be eligible for tax deferral if one, or both of
the following is satisfied:
· is 65 years of age or older and in receipt of the monthly
Guaranteed Income Supplement provided under Part II of the Old
Age Security Act (Canada), or
· is disabled and in receipt of benefits under the Family Benefits Act
and/or the Ontario Disability Support Program, or assistance under
the Ontario Works Act..
(c) To maintain eligibility the applicant's property taxes must be current.
3.2 Where an application is pending for a monthly Guaranteed Income
Supplement under Part 2 of the Old Age Security Act or for benefits to be
received under the Family Benefits Act, and/or the Ontario Disability Support
Program, or the Ontario Works Act, a deferral of taxes will be granted
conditional on successful application.
In the event of an unsuccessful application and where a deferral of taxes has
been granted any outstanding deferred taxes will become due and payable
on demand.
4. That the following conditions be applied to deferred taxes:
(a) The deferred taxes must be repaid within three years from the date
the deferral is allowed.
(b) In the event of transference of title to the property, the remaining
amount of all taxes deferred shall become due and payable on the date
of transference of such title.
(c) Earlier repayment could be based on an individual taxpayer's financial
circumstances or as a result of a tax sale of the property.
(d) All deferred taxes become due on the disposition of the property.
(e) In the event that it is later determined that the applicant is not eligible
for deferral of taxes as indicated under the eligibility criteria then the
deferred taxes will be withdrawn and the applicant must repay the
deferred taxes in full, inclusive of all other costs as determined by the
Municipal Treasurer.
Bill 91
(f) The applicant shall be liable for any administration and/or registration
fees as determined by the Municipal Treasurer.
(g) In the event a tax deferral is granted, no interest charges will be added
to the amount deferred.
5. That appl!cants for such tax deferrals prescribed under this by-law shall
complete the necessary applications and supply the necessary information
and consent(s) as may be from time to time established in the Corporate
Administrative Policy Manual.
6. That By-law 9052-98 be repealed.
7. That this by-law shall come into force and take effect on the day upon which
it is passed.
THE REGIONAL MUNICIPALITY OF NIAGARA
{~merman, Regional Chair)
{Pamela Gilroy, Actin§ Fl~ional Clerk)
Passed: September 20, 2001