Finance and Corporate Services Committee

Agenda

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

Members:

• 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 

Melinda Aston, Committee Coordinator,
[phone], ext. 21838
[email protected]

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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

3.

Confirmation of Minutes

3.1

FCSC Minutes 2 – March 7, 2023

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

• Report Recommendation

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

5.

Finance Services Department

5.1

Disposition of 2022 Tax and Rate Supported Operating Surplus/Deficit

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

• 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.

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.

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.

5.4

2023 Tax Policy And Other Revenue Matters

ACS2023-FCS-REV-0001 - City Wide

• 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.

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

• 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.

6.2

Status Update and Amendments to the Better Homes Ottawa Loan Program

ACS2023-PRE-EDP-0014 - City Wide

• 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.

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.

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)

10.

Inquiries

11.

Other Business

12.

Adjournment

Next Meeting

Tuesday 2 May 2023