March 8/06 Report
Actual Start Time: 9:36 am , Adjourn: 10:12 am.

Present : Councillors Braden, Bruckler, Collins (Vice Chair), Pearson, Samson (Chair), Whitehead.

Also Councillor Bratina for a short time.

L. Friday, Dir. Of Taxation

J. Rinaldo, Gen. Mgr, Finance and Corporate Services

Media: CATCH (Joan)

No changes to Agenda

No Declarations of Interest.

5. CONSENT ITEMS

(Pearson/Whitehead) All carried with no discussion.

NOTE: Question on Item 5.3 follows under Item 11: General Information - Councillor Bruckler

5.1 Minutes of Various Citizen Committees

5.1.1 Mundialization Committee - October 19, 2006

5.1.2 GLBTAdvisory Committee - January 11, 2006

(Note: Due to bulk, copies of these Minutes have been distributed electronically to members of Council. Minutes can be accessed via the City of Hamilton website.)

5. 2 Monthly Status Report of Tenders and Requests for Proposals for January 11, 2006 to February 14, 2006 (FCS06016) (City Wide)

5.3 Funding Agreement:: Safer Communities - 1,000 Officers Partnership Program (SCOPP) with Ministry of Community Safety and Correctional Services for Additional Funding for Front-line Officers (City Wide)(PSB05055(f))

8. DISCUSSION ITEMS

8.1 Report of the 2005 Remuneration and Expenses as Required Under Section 284 of the Municipal Act (FCS06015) (City Wide)  
(Collins/Bruckler) Carried

8.2 Sale of 362 John Street North, Hamilton (FCS06019) (City Wide, Ward2)
Councillor Collins questions where the money goes and L. Friday states "outstanding taxes."
(Pearson/Braden) Carried

8.3 Sale of 245 Catharine Street North, Hamilton (FCS06024) (City Wide, Ward2)
(Braden/Whitehead) Carried

8.4 Proposed Development Charges By-law 04-145 Amendments - Consultant Services (FCS06021) (City Wide)
In this report Staff and Council have identified several areas of the by-law that require updating.

Councillor Braden refers to the potential amendment for "Updating cost estimates pertaining to the Waterdown/Aldershot Transportation Master Plan" and asks if it will be a city-wide or an area-rated development charge.

Joe Rinaldo replies "We will need to update our part of it which will be part of the general by-law." The part that deals with Burlington side will be recommended to Council to be an area specific charge. Only the part within the urban boundary will be affected (OPA 28 lands).

Braden then asks about charges for the twin pad arena north of Waterdown. Rinaldo replies that items such as this will be studied and the development charges will be changed only if the change is significant.

When Braden inquires if the cost of the compost facility is included in the development charges. Rinaldo reminds him that due to legislation, waste management can not be included in development charges and says that "the province has put off any changes to the development charges act indefinitely" and he also mentions this includes Bruckler 's request to have parkland included.

In response to Braden 's questioning re single sourcing for this update through CN Watson & Associates, Rinaldo explains it is better value for the city to go this way as they were the consultants originally involved in the forming of the new development charges by-law in 2004.

Bruckler asks if the bike paths, trail systems, etc. are included in the development charges. Rinaldo is not sure and will make sure the committee reviews this to make sure if applicable they are included; they may be included under roads.

Collins: "There's a note in the report that we have received a number of complaints in regards to development charges (DCs) for apartment buildings." How does Hamilton compare with other municipalities?

Rinaldo replies the committee will investigate to see if there is a better way to do the calculations. It is based on the number of people in the units, and will look at what other municipalities do.

Councillor Whitehead asks if there have been any requests from the school boards for reduction in DCs and refers to the reduction in DCs for McMaster University student residences as opening a "Pandora's box". Rinaldo replies that he hasn't seen any requests.

Whitehead asks if DC's can be used for rec centres which accommodate "special needs" people. Rinaldo replies that the DC Act is very specific. If it's for special needs in new growth area, yes they can be applied, but the legislation does not permit exceptions for enhancing growth in existing areas.

Whitehead states that many people from new growth area come to the MacNab Rec Centre because "they don't have that service there."

Rinaldo says they may be able to include part of it to new growth and will make sure the committee will look at this. It has to be legally justified. Whitehead gives statistics re families with special needs using the rec centre. Rinaldo cautions "that we are going to focus on areas where we have major deficiencies."

When Whitehead asks if DCs can be used for sidewalks to be put in areas where development has taken place and the community is built, and which presently have no sidewalks. Rinaldo states that the new legislation does not allow that DCs be used for established areas/past growth. "Cannot deal with deficiencies for past growth." Update will focus on areas where we have major deficiencies, in order to avoid appeal processes.

(Bruckler/Pearson) Carried

(19 min. on this item)

8.5 Correspondence from A. Cranbury, Secretary, Governors Green Tenants' Association, respecting multi-residential tax rate

(Note: This item was referred by Council on February 15, 2006 .)

"We are upset that the tax rate that applies to our complex is 2.74 times that of the residential tax rate . and for the past two years the multi-residential ratio has been higher than it was in 2003." (Part quote from letter.)

Chair Councillor Samson asks Rinaldo what action staff is taking regarding this request.

Rinaldo replies that they will be submitting a report with some recommendations in terms of dealing with all tax policies, and it will go through the area rated sub committee, because a lot of it is imbedded as part of that. For 2005 it will be a small benefit for multi res, not anything significant. ".if we change the tax ratio down to the same as residential, we're looking at a 10-15% tax increase for our single family residential class because the legislation does not allow us to shift that cost to the commercial/industrial class . So that's the only area where you can increase the cost, so if you want to reduce the tax rate for the multi res you've got to increase tax on a single family dwelling .all of that will be set out in the report that will go first to the area rating sub committee and then council [Committee of the Whole] has the choice to do that once they look at it . and they will likely get a benefit from ¼ to ½% better than what the single family class will." He reminds committee that they did reduce the tax ratio from over 3 down to 2.74 over the last 4-5 years.

Braden asks if an apartment and a condo, side by side and identical, get taxed at the same rate. Rinaldo says that they don't because the market value of the condos is higher so they will pay higher taxes.

( Braden asks a question off mic.)

Rinaldo "as far as multi res, the condo would be classified as single family."

Councillor Pearson asks why report is going to area rating sub-committee, and Rinaldo explains that the tax policies are "intertwined, and because we want them to review the area- rating component, (but not the multi res) we do it as one report."

Samson asks Collins if he is asking for a fuller discussion outside the budget.

Collins said he had asked for options and alternatives. "I think Joe ( Rinaldo ) has just given the worse case scenario if we were to move multi res rates down to single family rates." Wants to look at alternatives between the current rates for multi res and current rates single family and states there are ways and means in which to reduce that rate, knowing that any rate ever so slightly will have an impact on single family homes. "I think that report will be coming outside the budget process that will give us those options and alternatives."

Rinaldo says they will include it in the report and it's a matter of phasing in - how fast or slow you want to do that and that they will provide options, and also that they are studying what other municipalities are doing, e.g. Ottawa.

Samson : "Beyond the budget process? We want this after the budget's settled to affect next year's budget?" Rinaldo : "Yes"

Whitehead asks that for the budget in 2007, that they have comparisons between size of apartments and single family (square footage).

(Pearson/Collins) Carried. (8 min. on this item)

11. GENERAL INFORMATION

Whitehead tells about following a fire truck from Ward 8 answering a call to go to the Meadowlands (Ancaster). Curious about the tax comparison between Ancaster and similar house in Ward 8, he found that the house in Meadowlands, assessed at $250,000 paid $236 in their fire protection part of the taxes, while a similar assessed house in Ward 8 paid $536. He says that it is an issue that will be discussed further in the area rating meetings "because it's a service that is not being paid for other than the residents of Hamilton ."

Bruckler asks a questions referring to Consent Item 5.3. Asks if there is a "sunset clause" for the funding of front-line officers between the Province and the City - 50/50 arrangement. "How long will that continue?"

Rinaldo replies that it is set, going to continue, but will check with police to find out whether or not it will change but "his understanding is that it's built into the budget and is on an ongoing basis."

Braden speaks off mic.

11.1. Outstanding Business Item B - Chargebacks and Interdepartmental Transfers (Due Date: March 8, 2006 )

Rinaldo says report will come back in September 2006 - "not information at this time . which will give a 6 month analysis."

(Whitehead / Braden ) (moved to accept new date) Carried

11.2 Outstanding Business Item N - Evaluation Process - Requests for Proposals (Due Date: March 8, 2006 )

ADJOURN