Finance and Corporate Services Committee

Minutes

Meeting #:

3

Date:

Tuesday, April 04, 2023

Time:

9:30 A.m. - 7:30 P.m.

Location:

Champlain Room, 110 Laurier Avenue West, and by electronic participation

Present:

• Chair: Mayor Mark Sutcliffe, 
• Vice-Chair: Councillor Catherine Kitts, 
• Councillor Riley Brockington, 
• Councillor Cathy Curry, 
• Councillor George Darouze, 
• Councillor Laura Dudas, 
• Councillor Glen Gower, 
• Councillor Rawlson King, 
• Councillor Jeff Leiper, 
• Councillor Matt Luloff, 
• Councillor Shawn Menard, 
• and Councillor Tim Tierney 

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1.

Notices and meeting information for meeting participants and the public

Notices and meeting information are attached to the agenda and minutes, including: availability of simultaneous interpretation and accessibility accommodations; in camera meeting procedures; information items not subject to discussion; personal information disclaimer for correspondents and public speakers; notices regarding minutes; and remote participation details.

Accessible formats and communication supports are available, upon request.

Except where otherwise indicated, reports requiring Council consideration will be presented to Council on April 12, 2023 in Finance and Economic Development Committee Report 3.

The deadline to register by phone to speak, or submit written comments or visual presentations is 4 pm on April 3, 2023, and the deadline to register to speak by email is 8:30 am on April 4, 2023.

2.

Declarations of Interest

No Declarations of Interest were filed.

3.

Confirmation of Minutes

3.1

FCSC Minutes 2 – March 7, 2023

Carried

4.

City Manager’s Office

4.1

Comprehensive Legal Services Report for the Period July 1 to December 31, 2022

ACS2023-CMR-OCM-0003 - Citywide

Mr. David White, City Solicitor responded to questions. 

After discussion, the Committee RECEIVED this item as presented.

• Report Recommendation

  That the Finance and Corporate Services Committee recommend that Council Receive this report for information.

  Received

5.

Finance Services Department

5.1

Disposition of 2022 Tax and Rate Supported Operating Surplus/Deficit

ACS-2023-FCS-FSP-0004 - City Wide

Cyril Rogers, Interim General Manager and Chief Financial Officer, Finance and Corporate Services Department and Suzanne Schnob, Manager, Finance Services, Finance and Corporate Services Department spoke to a PowerPoint presentation, a copy of which is held on file with the City Clerk. Mr. Rogers, Ms. Renée Amilcar, General Manager, Transit Services, responded to questions.

Committee heard from the following public delegation:

Miranda Gray spoke to the transit deficit.

After discussion, the Committee CARRIED this item as presented.

• Report recommendations

  That the Finance and Corporate Services Committee recommend Council approve:

  1. That the $8.431 million 2022 operating deficit in City-Wide be funded from the Tax Stabilization Reserve.
  2. That the Ottawa Police Services surplus of $1.051 million be transferred to the Tax Stabilization Reserve.
  3. That the $25.743 million 2022 operating deficit in Transit Services be funded from the Transit Operating Reserve.
  4. That the $4.622 million 2022 operating surplus in Ottawa Public Library (OPL) be transferred to the Library Reserve.
  5. That the $140 thousand 2022 operating deficit in Water Services be funded by the Water Reserve.
  6. That the $5.299 million 2022 operating deficit in Wastewater Services be funded by the Wastewater Reserve.
  7. That the $760 thousand 2022 operating deficit in Stormwater Services be funded by the Stormwater Reserve and;
  8. Receive Documents 1 to 5 for information.
  Carried

5.2

2022 Statement of Remuneration, Benefits and Expenses Paid to Members of Council and Council Appointees

ACS2023-FCS-FSP-0003 - City Wide

• Report Recommendation

  That the Finance and Corporate Services Committee and Council receive this report for information.

  Received

5.3

2023 Budgets and Special Levies for Business Improvement Areas (BIA) and Sparks Street Mall Authority

ACS2023-FCS-FIN-0002 - City Wide

• Report Recommendations

  1. That the Finance and Corporate Services Committee recommend that Council approve the 2023 budgets and special levies, as presented in Document 1, for the following:
     • Bank Street BIA
     • Barrhaven BIA
     • Bells Corners BIA
     • ByWard Market BIA
     • Carp BIA
     • Carp Road Corridor BIA
     • Downtown Rideau BIA
     • Glebe BIA
     • Heart of Orleans BIA
     • Kanata Central BIA
     • Kanata North BIA
     • Manotick BIA
     • Preston BIA
     • Somerset Chinatown BIA
     • Somerset Village BIA
     • Sparks Street BIA
     • Sparks Street Mall Authority
     • Vanier BIA
     • Wellington West BIA
     • Westboro Village BIA
  2. That Council enact the BIA levy by-laws and the Sparks Street Mall Authority by-law for the BIAs and Mall Authority listed in Recommendation 1 once the 2023 tax ratios are approved by Council.
  Carried

5.4

2023 Tax Policy And Other Revenue Matters

ACS2023-FCS-REV-0001 - City Wide

Joseph Muhuni, Deputy City Treasurer Revenue Finance and Corporate Services Department and Krista O'Brien, Program Manager, Property Assessment and Payment in lieu of Taxes, Finance and Corporate Services Department spoke to a PowerPoint presentation, a copy of which is held on file with the City Clerk. Mr. Muhuni and Ms. O'Brien responded to questions.

Committee heard from the following public delegations:

• Craig Kirk*
• Miranda Gray

* Individuals / groups marked with an asterisk above either provided comments in writing or by e-mail; all submissions and presentations are held on file with the Office of the City Clerk.

After discussion, the Committee CARRIED this item as presented.

• Report Recommendations

  That the Finance and Corporate Services Committee recommend that Council:

  1. Adopt the following optional property tax classes in 2023:
     • Shopping Centre property class
     • Parking Lot and Vacant Land property class
     • Office Building property class
     • Large Industrial property class
     • New Multi-Residential property class
     • Professional Sports Facility property class
  2. Adopt the following tax ratios for 2023:
     Property Class - Ratio*
     Residential - 1.00000
     Multi-Residential - 1.40001
     New Multi-Residential - 1.00000
     Farm - 0.20000
     Managed Forest - 0.25000
     Pipeline - 1.71982
     Commercial Broad Class - 1.94465
     Commercial - 1.91905
     Office Building - 2.38137
     Parking Lot and Vacant Land - 1.29531
     Shopping Centre - 1.54441
     Professional Sports Facility - 1.91905
     Industrial Broad Class - 2.44281
     Industrial - 2.55851
     Large Industrial - 2.19710
     Landfill - 2.76360
     * Subject to final minor revisions upon Ontario Property Tax Analysis close-off.
  3. Adopt the following tax ratios, discounts and by-laws for the mandatory and optional property subclasses and the tax rate percentage reduction for farm land awaiting development:
     • Small business subclass (commercial and industrial): 15 per cent discount on the applicable Commercial and Industrial property tax class ratio
     • Commercial excess land (commercial, office building and shopping centre property classes): No Discount
     • Industrial and large industrial excess land: No discount.
     • Vacant industrial land: 35 per cent discount on the applicable Industrial property class tax ratio
     • Farm land awaiting development subclass I: a ratio equal to a 25 per cent discount on the residential property class tax rate
     • Farm land awaiting development subclass II: No discount
     • Small-scale business on farm subclass I: 25 per cent of the applicable commercial or Industrial property class tax ratio
     • Small-scale business on farm subclass II: 25 per cent of the applicable commercial or Industrial property class tax.
  4. Approve that the tax rates for 2023 be established based on the ratios adopted herein.
  5. Approve that the 2023 capping and clawback provisions be as follows:
     • That capping parameters be approved at the higher of 10 per cent of the previous year's annualized tax or 10 per cent of the 2023 Current Value Assessment (CVA) taxes.
     • That capped or clawed back properties whose recalculated annualized taxes fall within $500 of their CVA taxation be moved to their CVA tax for the year and be excluded from any future capping adjustments.
     • That properties that have reached their CVA during the current year be excluded from any future capping adjustments.
     • Initiate the accelerated exit of the capping program, phased-out over 4 years.
  6. Approve that the property tax and water mitigation programs previously approved by Council as established in this report be continued for 2023 as follows:
     • Charitable Rebate Program
     • Farm Grant Program
     • Low-Income Seniors and Persons with Disabilities Tax Deferral Program, and the revisions to the program outlined in this report
     • Low-Income Seniors and Persons with Disabilities Water Deferral Program, and the revisions outlined in this report.
  7. Adopt the notional tax rate adjustment for the City of Ottawa as prescribed in the property tax-related regulations made under the Municipal Act, 2001.
  8. Approve that $5.7 million in additional tax revenue from the application of the notional tax rate adjustment be contributed to the tax stabilization reserve.
  9. Approve that the 2024 property tax and due date provisions be as follows:
     • That the interim 2024 property tax billing be set at 50 per cent of the 2023 adjusted/annualized taxes as permitted by legislation.
     • That the following tax due dates be approved for 2024:
       • Interim: March 21, 2024
       • Final: June 20, 2024.
     • That the penalty and interest percentage charged on overdue and unpaid tax arrears remain at 1.25 per cent per month (15 per cent per year) for 2024, unchanged from 2023.
     • That Council enact a by-law to establish the 2024 interim taxes, tax due dates, penalty and interest charges.
  10. Adopt an annual levy on eligible institutions pursuant to Section 323 of the Municipal Act, 2001, and Ontario Regulation 384/98 as follows:
      • $75 per full-time student in attendance at universities and colleges, pursuant to Section 323 (1)
      • $75 per resident placed in correctional institutions, pursuant to Section 323 (2)
      • $75 per rated bed in public hospitals, pursuant to Section 323 (3)
      • $75 per student placed in provincial educational institutions, pursuant to Section 323 (5).
  11. Authorize the Director, Corporate Real Estate Office, in consultation with the City Solicitor, to finalize and execute 4 Municipal Capital Facility Agreements that designate the portions of the following properties leased by the City of Ottawa as a Municipal Capital Facility:
      • Designate a portion of 2430 Don Reid Drive, comprising approximately 4,499 square feet of office space, as Municipal Capital Facilities (MCF) for the purpose of the general administration of the Municipality as permitted under Section 110(6) of the Municipal Act and as defined in Ontario Regulation 603/06, as amended.
      • Designate a portion of 2378 Holly Lane, comprising approximately 2,900 square feet of office space, as Municipal Capital Facilities (MCF) for the purpose of the general administration of the Municipality as permitted under Section 110(6) of the Municipal Act and as defined in Ontario Regulation 603/06, as amended.
      • Designate a portion of 50 Rideau St, comprising of approximately 962 square feet of office space, as Municipal Capital Facilities for the purpose of the general administration of the Municipality as permitted under Section 110(6) of the Municipal Act and as defined in Ontario Regulation 603/06, as amended.
      • Designate a portion of 1580 Merivale Rd, comprising approximately 9,950 square feet of office space, as Municipal Capital Facilities for the purpose of the general administration of the Municipality as permitted under Section 110(6) of the Municipal Act and as defined in Ontario Regulation 603/06, as amended.
  Carried

6.

Planning, Real Estate and Economic Development Department

6.1

Application by HAC OTTAWA AIRPORT, LP for an Ottawa International Airport Community Improvement Plan grant for 1085 Airport Parkway Private

ACS2023-PRE-EDP-0013 - City Wide

David Wise, Director, Economic Devel & Long-Range Planning, Planning, Real Estate & Economic Development Department (PRED), Cindy VanBuskirk, Program Manager, High Economic Impact Programs, PRED and Chris Cope, Officer, Economic Development, PRED, spoke to a PowerPoint presentation, a copy of which is held on file with the City Clerk.

Councillor L. Dudas introduced her motion on the outset. 

Committee heard from the following public delegations:

• Sueling Ching, President and CEO, Ottawa Board of Trade
• Catherine Callary, Vice President, Destination Development, Ottawa Tourism
• Mark Laroche, President and CEO, Ottawa International Airport Authority*
• Hugo Germain, Germain Hotels*
• Bessa Whitmore
• Sam Hersh
• Miranda Gray

* Individuals / groups marked with an asterisk above either provided comments in writing or by e-mail; all submissions and presentations are held on file with the Office of the City Clerk.

The following written submissions were received by, and are filed with, the Office of the City Clerk, and distributed to Committee Members:

Letter dated 30 March, 2023 from Dan Stankovic 
Email dated 30 March, 2023 from Craig Delmage 
Letter dated 29 March from Anand Aggarwal and Sonny Sohal

Mr. Wise, Ms. Cindy VanBuskirk, Mr. Cope responded to questions.

After discussion, the Committee voted on Councillor Dudas's motion, Lost on a tie of 6 Yeas to 6 Nays.

The report recommendations were then put to a recorded voted and Lost of a tie of 6 Yeas to 6 Nays.

• Report Recommendations

  That the Finance and Corporate Services Committee recommend City Council:

  1. Approve the grant application submitted by HAC OTTAWA AIRPORT, LP ("Germain Hotels”), in respect to 1085 Airport Parkway Private, in accordance with the Ottawa International Airport Community Improvement Plan, not to exceed $13,077,683 over a maximum period of 25 years, subject to the establishment of, and in accordance with, the terms and conditions of a Community Improvement Plan Agreement; and
  2. Delegate authority to the General Manager, Planning, Real Estate and Economic Development, to finalize and execute an Ottawa International Airport Community Improvement Plan Agreement with HAC OTTAWA AIRPORT, LP, establishing the terms and conditions governing the payment of a grant for the development of 1085 Airport Parkway Private, to the satisfaction of the General Manager, Planning, Real Estate and Economic Development Department, the City Solicitor, and the Chief Financial Officer.

  For (6)	M. Luloff, L. Dudas, G. Gower, R. King, C. Kitts, and C. Curry
  Against (6)	T. Tierney, J. Leiper, R. Brockington, G. Darouze, S. Menard, and M. Sutcliffe

  Lost on a tie (6 to 6)
• Motion No. FCSC 2023-03-01
  Moved by L. Dudas

  WHEREAS the CIP would generate an additional new estimated $4.36 million in unbudgeted and unallocated revenue for the City of Ottawa; and

  WHEREAS a required condition of a CIP grant application is:
  It can be demonstrated that the project would not otherwise have proceeded in the absence of the incentive; and

  WHEREAS the property owners have publicly stated that without the support of this grant this project will not be going ahead and there would be no increase in the property tax revenue collected from this site; and

  WHEREAS existing property tax revenue will never be used for the grant, and the rebates would always be exclusively covered by the increased property tax collected from the applicant’s developed property; and

  WHEREAS the increased property taxes collected from past CIP grant applicants have been directed by Council to specific City services and programs, such as expressly for affordable housing; and

  WHEREAS the City of Ottawa has declared a Housing and Homelessness Emergency; and

  WHEREAS City of Ottawa recreation and community centres are currently being repurposed to support Ottawa’s already overburdened and stretched emergency shelter system; and

  WHEREAS the City of Ottawa also relies heavily on contracting third party motels, at significant financial cost to the City, to fill gaps in the shelter system; and   

  WHEREAS City staff have identified barriers, and the need for further support in transitioning families out of the emergency shelter system into more permanent housing; 

  THEREFORE BE IT RESOLVED that the net new municipally retained tax increment, determined on an annual basis, resulting from the Airport Community Improvement Plan application in respect of 1085 Airport Parkway Private, be allocated to expand and enhance the capacity of the Community and Social Services Department to transition families out of the emergency shelter system into more permanent housing. 

  For (6)	M. Luloff, L. Dudas, G. Gower, R. King, C. Kitts, and C. Curry
  Against (6)	T. Tierney, J. Leiper, R. Brockington, G. Darouze, S. Menard, and M. Sutcliffe

  Lost on a tie (6 to 6)

6.2

Status Update and Amendments to the Better Homes Ottawa Loan Program

ACS2023-PRE-EDP-0014 - City Wide

Janice Ashworth Section Manager, Climate Change & Resiliency, Planning, Real Estate & Economic Development Department, spoke to a PowerPoint presentation, a copy of which is held on file with the City Clerk. Ms. Ashworth responded to questions.

After discussion, the Committee CARRIED this item as presented.

• Report Recommendations

  That the Finance and Corporate Services Committee recommend that Council:

  1. Approve the amendments to the Better Homes Ottawa Loan Program as described in this report;
  2. Approve the Better Homes Ottawa Incentive Program as detailed in Document 1 and direct staff to implement the Better Homes Ottawa Incentive Program; and
  3. Delegate the authority to the Chief Financial Officer and the General Manager of Planning, Real Estate, and Economic Development to implement certain changes to the Better Homes Ottawa Loan Program as detailed in this report.
  Carried

7.

In Camera Items

7.1

Strategic Collective Bargaining/Mandate for Negotiations - In Camera - Reporting Out Date: Not to be reported out

To be considered In Camera pursuant to Procedure By-law 2022-410, Subsections 13(1)(d), labour relations and employee negotiations, and 13(1)(f), the receiving of advice that is subject to solicitor-client privilege, including communications necessary for that purpose. As such, this matter will not be reported out.

Committee resolved In Camera at 2:32 pm and resumed in open session at 3:20 pm.

Upon resuming in open session, Mayor Sutcliffe advised that the Finance and Economic Development Committee met In Camera to receive a presentation on the Strategic Collective Bargaining/Mandate for Negotiations for the Civic Institute of Professional Personnel (CIPP)

These matters will not be reported out as they relate to Subsections 13(1)(d), labour relations and employee negotiations, and 13(1)(f), the receiving of advice that is subject to solicitor-client privilege, including communications necessary for that purpose.

During the in camera session, no votes were taken other than procedural motions and/or directions to staff. 

• Motion No. FCSC 2023-03-02
  Moved by C. Kitts

  BE IT RESOLVED THAT the Finance and Corporate Services Committee resolve In Camera to receive a PowerPoint presentation on Strategic Collective Bargaining/Mandate for Negotiations for the Civic Institute of Professional Personnel (CIPP) pursuant to Procedure By-law 2022-410, Subsections 13(1)(d), labour relations and employee negotiations, and 13(1)(f), the receiving of advice that is subject to solicitor-client privilege, including communications necessary for that purpose. – Reporting out Date: Not to be reported out.

  Carried

8.

Information Previously Distributed

8.1

Economic Development Update Q4 2022

ACS2023-PRE-EDP-0012 - City Wide

9.

Notices of Motions (For Consideration at Subsequent Meeting)

There were no Notices of Motion.

10.

Inquiries

FCSC 2023-01 (Councillor C. Kitts on behalf of Councillor Lo)

1. Is there a policy limiting the number of years a staff position can remain vacant before it must be filled or eliminated?
2. How many staff positions have been vacant for…
   1. Five years or more?
   2. Four to five years?
   3. Three to four years?
   4. Two to three years?
   5. One to two years?

11.

Other Business

Councillor Menard introduced the motion. 

After discussion, the Motion was CARRIED

• Motion - Lansdowne 2.0 Public Engagement

  Motion No. FCSC 2023-03-03
  Moved by S. Menard

  That the following motion be added for consideration as an additional item at the April 4, 2023 meeting of Finance and Corporate Services Committee, pursuant to Subsection 89 (3) of the Procedure By-law.

  WHEREAS council directed staff to apply the public engagement envisioned by the Council approved Public Engagement Strategy of 2021 (ACS2021-PIE-GEN-0004), for the three different streams of future approvals requiring input from the public being:

  1. The Concept Plan (i.e. retail, operations, and event centre);
  2. The City-initiated Rezoning application (i.e. residential towers, site plan);
  3. The Urban Park and Public Realm (i.e. site plan, landscaping, trees, park animation); and

  WHEREAS council directed staff to, as part of the Education and awareness phase, offer clear communication on the proposed Air Rights and Business Model process; and

  WHEREAS council directed staff to undertake public consultation as part of the City-initiated Rezoning application for Lansdowne Park; and

  WHEREAS council directed staff to consult on the development of a strategic public investment plan of capital improvements to the Urban Park and Public Realm; and

  WHEREAS Lansdowne may be one of the largest investments made by City Council this term; and” 

  WHEREAS meaningful consultation requires that a proposal can be modified to incorporate feedback and should allow for residents to have an informed discussion of proposals.

  THEREFORE BE IT RESOLVED THAT staff be directed to ensure that the Lansdowne 2.0 public engagement will include the following key elements:

  1. Consultation materials are made available in advance of consultation meetings such that residents have time to review materials;
  2. The comment period following the circulation of documents should remain open for a duration of time such that residents comments can be incorporated into decisions and staff reports;
  3. Consultations will not be limited by the proposed 2022 financial model and will ensure new ideas are heard and considered;
  4. A description is provided of all significant current and proposed roles and responsibilities at Lansdowne, and that this be outlined on a map.
  Carried

12.

Adjournment

Next Meeting

Tuesday 2 May 2023

The meeting adjourned at 3:28 pm.