2014 Council Orientation. November 26, 2014 Ministry of Municipal Affairs and Housing Municipal Services Office - Western
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1 2014 Council Orientation November 26, 2014 Ministry of Municipal Affairs and Housing Municipal Services Office - Western
2 Disclaimer These slides are provided by the Ministry of Municipal Affairs and Housing for convenience only The slides should not be relied on for legal or official purposes. For authoritative text, recourse may be had to the legislation As local facts and circumstances are variable, users may wish to consider obtaining their own legal advice when particular legal issues or decisions arise Ministry of Municipal Affairs and Housing 2
3 Ministry of Municipal Affairs and Housing Minister s Mandate 2014 Mandate Letter: Moving Forward on Social and Affordable Housing Improving Land Use Planning Reviewing Provincial Growth and Greenbelt Plans Reviewing Municipal Governance Strengthening Partnerships with Municipalities Amending the Building Code Reviewing Disaster Response Developing a Community Hubs Policy Ministry of Municipal Affairs and Housing 3
4 Ministry of Municipal Affairs and Housing Legislation MMAH administers approximately 50 statutes including: Municipal Act, 2001 Planning Act Housing Services Act, 2011 Building Code Act, 1992 Residential Tenancies Act, 2006 Line Fences Act Municipal Elections Act, 1996 Municipal Conflict of Interest Act Ministry of Municipal Affairs and Housing 4
5 Ministry of Municipal Affairs and Housing 5
6 Municipal Services Office - Western 108 Municipalities 11 Upper Tiers 12 Single Tiers 85 Lower Tiers LAMBTON CHATHAM- KENT BRUCE HURON PERTH MIDDLESEX ELGIN GREY WELLINGTON WATERLOO OXFORD BRANT NORFOLK HALDIMAND ESSEX Ministry of Municipal Affairs and Housing 6
7 Municipal Services Office: Role Your primary point of contact with the Ministry Build municipal capacity Provide information and facilitate connections regarding government initiatives Identify and disseminate best practices Partner with municipalities and others for common goals Build effective relationships Ministry of Municipal Affairs and Housing 7
8 Focus Of The Presentation Role of Council, Councillor and Staff Overview of Local Government Councillors as Lawmakers The Fiscal Context Land Use Planning Ministry of Municipal Affairs and Housing 8
9 Section 1: Role of Council, Councillor and Staff Ministry of Municipal Affairs and Housing 9
10 Roles Knowing everyone s role is key to understanding and managing relationships that will lead to effective local government: Role of the Head of Council Role of Council Role of Staff Ministry of Municipal Affairs and Housing 10
11 Role of Council The Municipal Act, 2001, sets out the role of council as follows: Represent the public and to consider the well-being and interests of the municipality Develop and evaluate the policies and programs of the municipality Determine services the municipality provides Ensure administrative policies, practices and procedures and controllership policies, practices and procedures are in place to implement the decisions of council Ensure the accountability and transparency of the operations of the municipality, including the activities of the senior management of the municipality Maintain the financial integrity of the municipality Carry out the duties of council under this or any other Act Ministry of Municipal Affairs and Housing 11
12 Role of Head of Council The Municipal Act, 2001, sets out the role of the head of council as follows: Act as the chief executive officer Preside over council meetings so that its business can be carried out efficiently and effectively Provide leadership to the council Provide information and recommendations to the council with respect to the role of council: Ensuring both administrative and controllership policies, practices, and procedures are in place to implement the decisions of council Ensuring the accountability and transparency of the operations of the municipality, including the activities of the senior management of the municipality Represent the municipality at official functions Carry out duties of the head of council under this or any other Act Ministry of Municipal Affairs and Housing 12
13 Role of the Councillor Representative Role Policy-Making Role Stewardship Role Ministry of Municipal Affairs and Housing 13
14 Representative Role Elected by your constituents to represent their views Many views/opinions Cannot represent all of them all of the time Election to office requires a broad understanding of the issues You may consider: Conflicting interests Making decisions that may not be popular with everyone You must make decisions in the best interests of the municipality as a whole There may be decisions that must be made by designated staff who operate at arm s length from the municipality, Could be inappropriate for elected officials to interfere or be seen to be interfering Examples include decisions made by the fire chief, the chief building official or the medical officer of health Ministry of Municipal Affairs and Housing 14
15 Policy-Making Role Policies provide direction for municipal operations by establishing general principles to help guide actions How is Policy Made? Identify the issue Agree on the facts and the objectives Direct staff to research issue, identify the available options and report back to council with recommendations Review staff s information and consider demands on time, funding and other issues Make a decision based on the best course of action available and adopt a policy Direct staff to implement the policy Evaluation of policy by staff and council - update or amend as required Ministry of Municipal Affairs and Housing 15
16 Stewardship Role Council must ensure financial and administrative resources are used efficiently: Define corporate objectives and set goals and priorities Establish clear administrative practices Provide specific guidelines/directions to staff on policy application Delegate appropriate responsibilities as permitted under municipal legislation Establish a personnel management policy recruitment, hiring, evaluation, staff training and development Ministry of Municipal Affairs and Housing 16
17 Stewardship Role (continued) Have operational policies including mandatory policies required by the Municipal Act, 2001 Establish a policy/procedure for reporting to council on administrative activities Develop protocols for the flow of information between council and staff Consider establishing a protocol for sharing approaches with other local governments and First Nations communities that share a common interest in community health, culture and economy Establishing and following policies and guidelines enables council to leave the day-to-day details for the staff to manage Ministry of Municipal Affairs and Housing 17
18 Accountability and Transparency Maintaining public trust in council and in the management of a municipality is a priority The Municipal Act, 2001 requires municipalities to have policies on: Sale and other disposition of land Hiring of employees Procurement of goods and services When and how notice is provided to the public How the municipality will try to ensure accountability and transparency to the public Delegation of powers and duties Ministry of Municipal Affairs and Housing 18
19 Accountability and Transparency (continued) To help ensure integrity and accountability in public office, the Municipal Act, 2001 allows municipalities to pass bylaws to establish: An Integrity Commissioner A municipal Ombudsman An Auditor General A lobbyist registry and registrar A code of conduct for council and local board members Ministry of Municipal Affairs and Housing 19
20 Council - Staff Relationship and Roles Council Representative Direction & Policy Decisions Political Leadership Staff Manage people & resources Research & Advice Implementation Organizational Leadership Ministry of Municipal Affairs and Housing 20
21 Role of Staff The Municipal Act, 2001, sets out the role of the officers and employees of the municipality as follows: Implement council s decisions and establish administrative practices and procedures to carry out council s decisions Undertake research and provide advice to council on the policies and programs of the municipality Carry out other duties required under this or any Act and other duties assigned by the municipality Some officers of the municipality have statutory obligations Ministry of Municipal Affairs and Housing 21
22 Strategic Planning Identifying the long range vision of where the organization is headed and developing goals and priorities to reach this end state Framework to encourage consistency in decision making Shared view of the municipality s future Ministry of Municipal Affairs and Housing 22
23 Strategic Planning (continued) Articulates a common vision/direction Provides a tool for communicating a consistent message Includes mechanisms for tracking and reporting progress Greater understanding of environment (strengths, weaknesses, opportunities and threats SWOT analysis) and internal organization Creates alignment throughout the organization, with the board/council and stakeholders Ensures alignment between strategic goals and other organizational processes Ministry of Municipal Affairs and Housing 23
24 Components of Strategic Planning A Vision, Mission and Values Strategic Goals and Objectives Strategic Initiatives Performance Measures Ministry of Municipal Affairs and Housing 27/11/ Presentation title 24
25 Staff Succession Planning Benefits to the municipality of having a succession plan: Smoother transition with employee turnover (continuity of operations) Employees feel valued and appreciated Enhanced knowledge transfer and skill set retention Identified source of replacements for key leadership positions Savings to the taxpayer by avoiding temporary, costly external staffing services A succession management plan includes: Staff assessment Talent management Recruitment and training strategies Allocation of resources Ministry of Municipal Affairs and Housing 25
26 Key Tips Role of Council, Councillor and Staff A municipal strategic plan is considered an essential part of municipal governance. If your municipality has one, familiarize yourself with it Information held by the municipality should be easily accessible to internal and external stakeholders Only withhold information from the public when permitted by legislation Familiarize yourself with municipal policies such as: handling public inquiries and complaints staff council reporting municipal policy manual code of conduct for council and board members All municipalities, if they have not already, are encouraged to create an employee succession plan Ministry of Municipal Affairs and Housing 26
27 Section 2: Overview of Local Government Ministry of Municipal Affairs and Housing 27
28 Municipal Government The Municipal Act, 2001 provides that municipalities are: A geographic area whose inhabitants are incorporated Created by the Province of Ontario Responsible and accountable governments within their jurisdiction Given powers and duties under the Act and many other Acts for the purpose of providing good government with respect to those matters Ministry of Municipal Affairs and Housing 28
29 Municipal Roles and Responsibilities The Municipal Act, 2001 establishes the basic framework for municipal government Authority for important municipal activities can also be found in many other acts Ministry of Municipal Affairs and Housing 29
30 Municipal Organization Upper tier municipalities within a two tier municipal structure Lower tier municipalities within a two tier municipal structure Single tier municipalities which are not part of a two tier structure Ministry of Municipal Affairs and Housing 31
31 Aboriginal Peoples First Nation and Métis communities can be located alongside and/or within municipal boundaries Need to be aware of aboriginal history in your geographic area Much of Ontario is covered by treaties between the Crown and First Nations Ensure municipal decision making considers commitments made in treaties Ministry of Municipal Affairs and Housing 33
32 Aboriginal Peoples Look for opportunities for collaboration between municipalities and Aboriginal communities on matters of mutual interest Engaging with Aboriginal communities who share your municipality s interests may create stronger communities in areas such as: Economic development, Planning and development Community services Ministry of Municipal Affairs and Housing 34
33 Committees, Local Boards and Other Special Purpose Bodies Considerable variety of committees, local boards and special purpose bodies Provincially and municipally established Committees may be part of local governance structure May include standing committees or advisory committees Municipalities decide on composition Can draw on members areas of expertise/perspectives/experiences Local Boards - may carry special legal status Particular rules/rights and responsibilities Not all special bodies are local boards Each needs to be looked at individually Municipal Services Boards a kind of local board that municipalities use to help manage a broad range of municipal services such as public utilities, waste management, transportation systems, parking Can be established by an individual municipality or by two or more municipalities Ministry of Municipal Affairs and Housing 35
34 Committees, Local Boards and Other Special Purpose Bodies Examples: municipal service boards school boards police services boards boards of health hospital boards transit commissions library boards conservation authorities children s aid societies, planning boards land division committees Ministry of Municipal Affairs and Housing 36
35 Key Tips Overview of Local Government Consider local circumstances when creating municipal committees and boards Seek municipal staff guidance and expertise on possible governance structures for program and service delivery Refer to terms of references for your municipality s local boards, other local bodies, and committees, to understand the scope and nature of their work Ministry of Municipal Affairs and Housing 37
36 Section 3: Councillors as Lawmakers Ministry of Municipal Affairs and Housing 38
37 Legal Considerations on Exercising Power The Constitution Act, 1982 (formerly the British North America Act, 1867) Ministry of Municipal Affairs and Housing 39
38 Statute Law Sources of Law Legislation enacted by the provincial or federal governments General acts Acts specific to individual municipalities Private acts and Regulations e.g. Municipal Act, 2001, City of Hamilton Act, 1999, Canada Mortgage and Housing Corporation Act Administrative Law Decisions made by boards and tribunals Case Law Court decisions Ministry of Municipal Affairs and Housing 40
39 Natural Person Powers Municipal Powers Provides municipalities with flexibility similar to what individuals and corporations have in managing their organizational and administrative affairs, within their jurisdiction Powers may include: Hire staff Enter into agreements Acquire land and equipment Ministry of Municipal Affairs and Housing 41
40 Municipal Powers (continued) Broad Permissive Powers include, subject to certain limits: Governance structure of the municipality and its local boards Accountability and transparency of the municipality and its operations and of its local boards and their operations Financial management of the municipality and its local boards Public assets of the municipality acquired for the purpose of exercising its authority under this or any other act Economic, social and environmental well-being of the municipality Health, safety and well-being of persons Services and things that the municipality is authorized to provide Protection of persons and property, including consumer protection Animals* Structures, including fences and signs* Business licensing * Ministry of Municipal Affairs and Housing 42
41 Municipal Powers (continued) Spheres of Jurisdiction in Two Tiered Systems Municipalities are also provided with spheres of jurisdiction (areas where municipalities have authority) to address the division of powers between upper-tier and lower-tier municipalities Spheres include rules about whether the upper-tier or lower-tier municipality (or both) may pass bylaws within all or part of each sphere Highways, including parking and traffic on highways Transportation systems, other than highways Waste management Public utilities Culture, parks, recreation and heritage Drainage and flood control, except storm sewers Structures, including fences and signs. Parking, except on highways Animals Economic development services Business licencing Ministry of Municipal Affairs and Housing 43
42 Specific Powers Municipal Powers (continued) Powers given to municipalities under any act other than the broad permissive powers and the spheres of jurisdiction Could include specific powers under the Municipal Act, 2001 or many other statutes Municipal Limits Some limits are placed on municipal powers. Generally, Bylaws cannot conflict with federal or provincial statutes or regulations Broad powers and the spheres of jurisdiction are subject to procedural requirements and other limits Except where expressly authorized, a municipality can only exercise powers within its municipal boundaries Regulations can further limit the powers of a municipality Additional rules exist in a two tier municipality under subsection 11(4) of the Municipal Act, 2001 Ministry of Municipal Affairs and Housing 44
43 Licensing Municipal Powers (continued) Municipalities have authority to license many businesses such as: Taxicabs Tow trucks Adult entertainment establishments Trailer camps, etc. Municipalities may: Impose conditions on a license Suspend a license Ministry of Municipal Affairs and Housing 45
44 Delegation Municipal Powers (continued) Municipalities have the authority to delegate some powers and duties subject to certain rules Streamlines council decision-making by delegating minor matters Permits council to focus on larger issues Builds on authority to create local bodies to assist with local decisionmaking Powers that cannot be delegated: appointing or removing statutory officers imposing taxes incorporating corporations adopting or amending official plans passing zoning bylaws passing certain bylaws related to small business counselling and municipal capital facilities adopting community improvement plans which envisage bonusing Approving and amending municipal budgets Other powers as prescribed Ministry of Municipal Affairs and Housing 46
45 Council and Local Board Meetings Powers of a municipality are generally exercised by by-law Occurs at council meetings Quorum is generally required to conduct council business Meeting (as defined in the Municipal Act, 2001) Any regular, special or other meeting of a council, of a local board or of a committee of either of them Committee (as defined in the Municipal Act, 2001) Any advisory or other committee, subcommittee or similar entity of which at least 50% of the members are also members of one or more councils or local boards Ministry of Municipal Affairs and Housing 47
46 Procedure By-law Every municipality and local board shall pass a procedure by-law for governing the calling, place and proceedings of meetings (as defined in the Municipal Act, 2001) Describes how meetings are to be conducted Contents are generally up to the municipality May be considered a transparency and accountability tool Regular review of the bylaw ensures it effectively facilitates decision making Shall provide for public notice Ministry of Municipal Affairs and Housing 48
47 Effective Meetings Suggestions for Chairing Effective Meetings Be aware of the rules of procedure, be timely, be impartial, be firm Prepare for the meeting by reviewing the entire agenda package Recognize that the presiding officer is a member of council: He or she may wish to vote on questions being addressed by council He or she may wish to temporarily step down as presiding officer during a meeting to debate an item on the agenda Respecting and communicating decisions that are made by council as a whole may be part of the role Ministry of Municipal Affairs and Housing 49
48 Minutes - Record of meeting A municipality or local board or a committee of either of them shall record without note or comment all resolutions, decisions and other proceedings at a meeting of the body, whether it is closed to the public or not The record shall be made by: The clerk, in the case of a meeting of council or The appropriate officer, in the case of a meeting of a local board or committee (as defined in the Municipal Act, 2001) Ministry of Municipal Affairs and Housing 50
49 Open and Closed Meetings: Public Business Transparent decision-making processes may be seen as part of the foundation of the good governance of a municipality Most municipal council and local board meetings shall be open to the public There are only a limited number of exceptions, for consideration of matters in closed session (see next slide and section 239 of the Municipal Act, 2001 for more information about open meetings) A resolution is required to be passed before going into closed meetings Ministry of Municipal Affairs and Housing 51
50 When A Meeting May Be Closed A meeting or part of a meeting may be closed to the public if the subject matter being considered is: Security of municipal property Personal matters about an identifiable individual Proposed or pending land acquisition or disposal Labour relations or employee negotiations Litigation or potential litigation Advice subject to solicitor-client privilege A matter that can be closed under the authority of a statute other than the Municipal Act, 2001 Education or training sessions that meet certain conditions (Refer to section 239 of the Municipal Act, 2001) Freedom of Information requests may require council to close a meeting Ministry of Municipal Affairs and Housing 52
51 Closed Meeting Procedures Before holding a meeting closed to the public the council, local board or committee must adopt a resolution stating: the fact of holding the closed meeting the general nature of the matter to be discussed Generally, votes at a closed meeting may take place only in limited circumstances. These may include: to give instruction to staff procedural matters (example adjournment) Minutes are required of all meetings, whether closed or not Ministry of Municipal Affairs and Housing 53
52 Closed Meeting Investigation Under sections and of the Act, a person may request an investigation of whether a closed meeting complied with the Act or a municipality s procedure bylaw The municipality may appoint an independent investigator who may report with recommendations to council If the municipality does not appoint an investigator, the Ontario Ombudsman may investigate Ministry of Municipal Affairs and Housing 54
53 Municipal Conflict of Interest The Municipal Conflict of Interest Act sets out what may be regarded as a primary set of ethical rules for council and local board members These rules apply, with some exceptions, to council and local board members if they have a pecuniary (financial) interest in a matter that is before a council (or a local board) at a meeting The legislation requires a member with this kind of interest again with certain exceptions to, among other things: disclose the interest and its general nature before the matter is considered at the meeting not take part in the discussion or voting on any question in respect of the matter not attempt to influence the voting before, during, or after the meeting; and immediately leave the meeting, if the meeting is closed to the public Potential penalties for contravention of the Act include removal from office. The courts decide whether or not a contravention of the Act has taken place Ministry of Municipal Affairs and Housing 55
54 Codes of Conduct Municipal Act, 2001 authorizes the municipality to establish codes of conduct for members of the council of the municipality and of local boards of the municipality Ministry of Municipal Affairs and Housing 56
55 Municipal Freedom of Information and Protection of Privacy Act Provincial law which provides for: Public access to municipal records and Protection of privacy respecting government-held personal information held by a municipality Rules for collection, use and disclosure of personal and other confidential information Ministry of Municipal Affairs and Housing 57
56 Bylaws Bylaws and Resolutions The powers of your municipality are generally exercised by bylaw: signed both by the head of council or presiding officer of the meeting at which the bylaw was passed and by the clerk and under the seal of the corporation Additional requirements may apply before passing a bylaw (public meetings, public notice, provincial approval) When passing bylaws, municipalities should consider how they will be enforced Resolutions Opinions/views of council on a specific issue Position of the municipality Ministry of Municipal Affairs and Housing 58
57 Actions Against the Municipality Ultra Vires Person may apply to the courts to have a bylaw (or part of a bylaw) quashed if the municipality did not have the specific authority to pass the bylaw Civil Action for Damages Municipality may be sued for failure to carry out or negligence in conduct of its statutory duties Appeals Individual may appeal certain municipal decisions to the courts or to certain quasi-judicial bodies Judicial Review Form of relief where municipality proposes to act or has acted without power or beyond its powers or has refused to exercise a mandatory power Individual may take action to bring matter before the courts for a legal remedy Risk Management: Municipalities are adopting risk management strategies to minimize effects and costs of public liability suits. Municipalities are doing so by identifying potential hazards and implementing appropriate measures to reduce or eliminate them Ministry of Municipal Affairs and Housing 59
58 Key Tips Councillors as Lawmakers Be aware of the legal framework within which your municipality must operate and the need for legal advice Familiarize yourself with provincial legislation, such as the Municipal Act, 2001, Municipal Conflict of Interest Act and the Planning Act Review your municipality s existing bylaws Municipal staff should not be expected to provide you with legal advice; that is the responsibility of your municipal solicitor. In some cases, such as the Municipal Conflict of Interest Act, your own solicitor may provide you with personal advice Where there are complications in achieving your municipality s objectives, ask for advice on how things can be done Ministry of Municipal Affairs and Housing 60
59 Key Tips Councillors as Lawmakers (continued) Familiarize yourself with accessing federal and provincial statutes, regulations and orders electronically Work within the legal framework Maintain a municipal library in hard copy or on-line which includes important municipal documents such as: minutes of meetings, official plans, strategic plans, budgets, performance measurements, bylaws, resolutions, policies, studies, inventories, registries, etc. Ministry of Municipal Affairs and Housing 61
60 Section 4: The Fiscal Context Ministry of Municipal Affairs and Housing 62
61 Fiscal Context As municipal council, you are tasked with governance and oversight of the financial well being of a municipality, that is: Transparent Accountable Responsible to the ratepayers Ministry of Municipal Affairs and Housing 63
62 Budgeting Budgets are powerful management tools Municipalities are required to annually prepare and adopt a balanced budget Reflection of what you plan to do for the year Budget process includes elements of planning, coordination amongst municipal departments and budget committee, and controllership Ministry of Municipal Affairs and Housing 64
63 Budget Cycle Budget Preparation Timing varies amongst municipalities as to when budgets are started and finalized. However, the steps usually taken include: establishing a budget timetable initiating a budget plan, gathering supporting data and guidelines evaluating/reviewing draft estimates compiling an overall budget document approval of the budget and levying bylaw(s) budget implementation and budgetary control Staff will be able to advise as to your municipality s process Ministry of Municipal Affairs and Housing 65
64 Operating and Capital Budgets Operating Budgets Operating budgets reflect your municipality s day-to-day expenditures, such as salaries, wages, benefits, heat, hydro, maintenance of buildings and infrastructure They may act as an operations guide, a financial plan, a policy document and a communications tool Capital Budgets A capital budget typically provides for infrastructure, such as water treatment plants, storm sewers, recreation centres, parks, and roads maintenance or new infrastructure Through capital budgets, in conjunction with an asset management plan, the municipality can plan important future spending including debt repayment, and reserve fund contributions Ministry of Municipal Affairs and Housing 66
65 Key Tips The Fiscal Context Review your municipality s asset management plan to help you understand the infrastructure priorities and needs within your community Public input is essential in the municipal budget process. Public input promotes trust in the municipality and ensures council is aware of residents opinions Before voting on the adoption of a budget, as a municipal councillor you may wish to have a strong understanding of the significant costs the budget document is committing the municipality to, the revenues required to meet these obligations and, more importantly, how the budget will help the municipality achieve long-term financial sustainability Ministry of Municipal Affairs and Housing 67
66 Financial Reporting to the Public For Municipalities: Audited Financial Statements Financial Information Return (FIR) Municipal Performance Measurement Program For Service Managers Service Manager Annual Information Return (SMAIR) Ministry of Municipal Affairs and Housing 68
67 Financial Information Return (FIR) The FIR is an invaluable resource for both the province and the municipality The province uses it for many purposes including: calculating grant amounts, developing policy monitoring the financial status of municipalities preparing municipal debt limit reports requests for financial and statistical data Ministry of Municipal Affairs and Housing 69
68 Financial Information Return (FIR) From a municipal perspective, the FIR is an integral tool with many applications including: Preparation of year over year comparisons, trend analysis, forecasting Performance measurement and for comparative purposes with other like municipalities on key indicators (for example, debt and reserve levels) Supporting land use planning, strategic planning, and asset management planning oraweb.mah.gov.on.ca/fir/welcome.htm Ministry of Municipal Affairs and Housing 70
69 Some questions to consider: Data Based Analysis How do your tax levels compare to other similar municipalities? What factors does your council consider when setting your tax rates? How does your council communicate tax rate or budget changes to your taxpayers? What pressure is on your tax base from outstanding assessment appeals? How does your council monitor potential pressures to your tax base, such as outstanding assessment appeals? What policies or practices does council have for addressing those pressures through the budgeting process? Does the municipality maintain tax stabilization reserves? Another potential pressure is the level of tax arrears in your municipality. Is it increasing or decreasing? What factors in your community have affected the level of tax arrears? How does your municipality compare to others? Why is that? Is your municipality s level of long-term debt increasing? How does its long-term debt level compare to other municipalities? Does your municipality reconcile asset management objectives with its level of long-term debt? Ministry of Municipal Affairs and Housing 71
70 Key Tips Financial Information Return Ensure that the reporting requirement timelines are met to help ensure access to capital programs and receipt of provincial grants on time Take advantage of the opportunity to use the breadth of FIR data to support evidence-based decision-making Become familiar with your FIR, and use it! Ministry of Municipal Affairs and Housing 72
71 Sources of Municipal Revenue Municipal revenue may be broadly categorized as tax and other revenue Some examples of tax revenue include: Property tax Special area taxes Other revenue examples: Conditional and unconditional grants, User fees for services, Licensing fees, Investment income, Development charges, Fines and penalties, Local improvement charges, Payments in lieu of taxes Ministry of Municipal Affairs and Housing 73
72 Capital Financing Sources Main sources of capital funding: Internal Sources Transfer or use of funds from or identified in the current-year operating budget Existing reserves and reserve funds External Sources Government grants (both federal and provincial) Fundraising or donations Payments to a municipality through public-private partnership arrangements Debt, Lease or Other Kinds of Financing External borrowing Long-term leases Other financing involving long-term payment obligations for the municipality. Ministry of Municipal Affairs and Housing 74
73 Debt Management Generally, a municipality may not commit more than 25% of its total own-purpose revenues to service debt/long-term obligations without prior OMB approval This limit is known as the Annual Repayment Limit (ARL) The ARL is calculated using the data that municipalities submit annually through the FIR Use of indicators to assess ability to service debt Pay-as-you-go financing versus use of debt is a municipal decision Ministry of Municipal Affairs and Housing 75
74 Property Taxes Assessment/Tax Base: Municipal Property Assessment Corporation (MPAC) regularly assesses all properties based on current value Cumulative value of all assessment in the municipality is the tax base. Tax rates: applied to taxable assessment to determine the amount of taxes to be paid Separate municipal tax rate for each property class within municipalities Provincially established rates for education purposes Ministry of Municipal Affairs and Housing 76
75 Shared Service Arrangements Invaluable tool to maintain, expand or add services that may have otherwise been beyond the municipality s capacity (financially and resource wise) It is not new to municipalities, a majority of municipalities have shared service arrangements Benefits of shared services: Cost savings from economies of scale Service enhancements and expansions Access to specialists, skilled labour and/or better quality equipment Tap into new revenue streams that require mass users or inputs Seamless service integration across a region Ministry of Municipal Affairs and Housing 77
76 Asset Management Municipal infrastructure is critical to delivering services to Ontarians and supporting our economy Asset management: An integrated, long-term or lifecycle approach to maximize benefits, manage risk and provide satisfactory service levels in a sustainable manner Encourages locally developed, systematic understanding of the needs which are most important and how they can be addressed Considers a municipality s objectives and develops a plan to support infrastructure services at the lowest cost over the life of the infrastructure Provides council with analysis/metrics when making capital financial planning decisions to ensure highest priority capital projects are funded Help municipalities and the province make the right investments at the right time Ministry of Municipal Affairs and Housing 78
77 Municipal Asset Management Planning Elements of an Asset Management Plan: State of local infrastructure Desired levels of service Asset management strategy Financing strategy Ministry of Municipal Affairs and Housing 79
78 Municipal Asset Management Planning (continued) Asset management may pay for itself: the incremental costs involved in moving towards detailed AMPs are generally offset by the savings that are realized Improves public confidence: a transparent, publicly communicated AMP helps provide greater accountability by demonstrating that public money is being invested responsibly and by showing that results are being achieved Improves decision-making: AMP can be used to provide objective advice on resource allocations. It is easier to make informed decisions when all costs have been factored in. This can help streamline decision-making at budget time Reduces risks: good asset management practices reduce risks by identifying issues and allowing for early intervention, particularly for core assets that affect the health and safety of the public Required for provincial funding: municipalities will need to demonstrate that they are undertaking asset management planning - and that their grant requests are supported by their plan - in order to access provincial funding for infrastructure Ministry of Municipal Affairs and Housing 80
79 Section 5: Land Use Planning Ministry of Municipal Affairs and Housing 81
80 Why Plan? Social Economic Environmental Use resources wisely Ministry of Municipal Affairs and Housing 82
81 Key Characteristics of the Land Use Planning System in Ontario Province leads with legislation, policy and plans Municipalities implement policies and reflect local needs through their official plans, zoning by-laws and other planning decisions Opportunities for public input / involvement are important parts of the system Ministry of Municipal Affairs and Housing 83
82 What is a provincial interest? Provincial interests are things that protect and promote the health, safety and welfare of the residents of Ontario Section 2 of the Planning Act identifies matters of provincial interest in land use planning, including: adequate provision of housing and employment opportunities protection of the natural environment and conservation/ management of natural resources protection of public health and safety Ministry of Municipal Affairs and Housing 84
83 Land Use Planning Framework The Planning Act provides the legislative framework for land use planning in Ontario including regulations and policy direction Other Related Legislation (e.g.): Greenbelt Act, 2005, Places to Grow Act, 2005, Environmental Protection Act, Development Charges Act, 1997, Ontario Heritage Act Provincial Plans (e.g.): Greenbelt Plan, Growth Plan for the Greater Golden Horseshoe, Growth Plan for Northern Ontario Provincial Initiatives (e.g.): Ontario s Great Lakes Strategy, CycleOn, Climate Ready, Biodiversity: It s in Our Nature Proponents/applicants, the public, the province, municipal councils, planning boards, and the Ontario Municipal Board all have roles in the planning system Ministry of Municipal Affairs and Housing 85
84 Land Use Planning Provincial Policy Statement Policy foundation for regulating development and use of land in Ontario Healthy communities, including the provision of affordable housing Use and manage resources efficiently, including the protection of natural heritage Protect public health and safety, including mitigating and adapting to climate change Provides direction on matters such as housing, economic development, natural heritage, agriculture, mineral aggregates and water Decisions made by councils exercising any authority that affects planning matters shall be consistent with the Provincial Policy Statement (PPS) Ministry of Municipal Affairs and Housing 86
85 The Ontario Municipal Board (OMB) Independent tribunal to hear appeals and make decisions on municipal land use planning matters Any person or public body, subject to meeting certain requirements, can appeal a planning decision with reasons to the OMB or, in the case of minor variance and consent application decisions, to a Local Appeal Body (LAB), if your municipality has established one Participation in the municipal planning process is an important criterion if the public wishes to make an appeal Failure of a planning authority to make a decision on most planning applications within specified time periods can also trigger an appeal to the OMB Some planning decisions cannot be appealed Ministry of Municipal Affairs and Housing 87
86 One Window Planning Service and Municipal Plan Review Land use planning decisions are made at either a local or provincial level Either way, the land use planning process is designed to: Be a one-stop portal between the decision-maker and applicant for land use matters Co-ordinate provincial or municipal positions back to an applicant Maximize the effectiveness of early consultation Ensure consistent decision-making Improve planning service delivery and efficiently use resources Improve planning service delivery and efficiently use resources Ministry of Municipal Affairs and Housing 88
87 Municipal Planning Tools There are several key planning tools available to municipalities to plan and control development and achieve priorities important to Ontarians and the community including: Official plans Zoning bylaws Minor variances Subdivision plans/consents Site plan control Community improvement plans Development permit system Up-to-date planning documents allow municipalities to be investmentready in order to seek and respond to economic opportunities The province has been providing municipalities with additional authority to make these land use planning decisions Ministry of Municipal Affairs and Housing 89
88 Official Plans Articulate the community s vision for land use over a 20 year planning horizon and reflect the public interest Need to be up-to-date as they address issues such as: Location of new housing, industry, offices and retail Protection of environmental features Actions to achieve climate change objectives Necessary service requirements - roads, water mains, sewers, parks and schools Growth - when and in what order, which area of your municipality Community improvement initiatives Decisions involve a public process with an appeal mechanism Ministry of Municipal Affairs and Housing 90
89 Control the use of land Zoning Bylaws Implements objectives/policies of the official plan Outline: Permitted land uses Location of buildings and other structures Types of buildings permitted Lot sizes and dimensions Parking requirements Building heights Setbacks from a street or lot boundary Decisions involve a public process with an appeal mechanism Ministry of Municipal Affairs and Housing 91
90 Plans of Subdivision and Consents Allow the division of land into separate parcels that can be sold separately Review includes an evaluation of whether (e.g.): The land is suitable for proposed use The application conforms to official plan and provincial legislation and plans and is consistent with PPS Municipal facilities, services or finances can accommodate the development Decisions involve a public process with an appeal mechanism Ministry of Municipal Affairs and Housing 92
91 Plans of Subdivision and Consents Subdivisions Subdivision plan prepared and submitted to approval authority Scale of anticipated impact of development may be greater with a plan of subdivision and a plan of subdivision requires a more comprehensive review Consents Land severance process where a plan of subdivision has been deemed not necessary and is generally limited to the creation of one or two lots Conditional approval subject to conditions requiring fulfillment within one year Ministry of Municipal Affairs and Housing 93
92 Site Plan Control Detailed control on the development of a specific property Council can designate areas of site plan control Official plan policies and site control bylaws play a role Developers submit site plans for approval Regulates various features on the site Building, site and boulevard design Character Scale Appearance Climate change mitigation and adaptation Streetscape design Municipalities can use site plan agreements Ministry of Municipal Affairs and Housing 94
93 Community Improvement Municipalities permitted to develop community improvement policies Official plans play a role Policies encourage redevelopment, rehabilitation, improvements Examples of the types of improvements: Industrial area remediation and redevelopment Streetscape and façade improvements Refurbishing of core business areas Heritage conservation of homes or commercial building Increased housing choices Land assembly policies Mixed densities and compact spatial forms Energy efficient uses Municipalities can make grants or loans within the Community Improvement Plan project areas to help pay for certain costs (incent the redevelopment) Ministry of Municipal Affairs and Housing 95
94 Development Permit System (DPS) Land use approval system that combines zoning, site plan and minor variance processes into one application and approval Relatively new (2005) optional tool Streamline and facilitate development Enabling official plan policies and development permit bylaw required Minimum/maximum standards and, if desired decision-making criteria set out in bylaw Promotes economic development, Promotes brownfield redevelopment Enhances environmental protection Ministry of Municipal Affairs and Housing 96
95 Second Units and Garden Suites Ontario has developed strategies that assist municipalities to improve access to adequate, suitable and affordable housing, so that the people of Ontario have a solid foundation on which to secure employment, raise families and build strong communities Second Units Part of the Ontario Long Term Affordable Housing Strategy amended the Planning Act to facilitate the creation of second units to help improve housing affordability All municipalities are required to establish official plan policies and amend their zoning bylaws to allow second units in detached, semi-detached and row houses, as well as in ancillary structures Second unit policies, cannot be appealed to the Ontario Municipal Board except at the time of an official plan five-year update Garden Suites Garden suites are temporary one-unit, detached residences containing housekeeping facilities that are ancillary to existing houses and that are designed to be portable Can be permitted on a temporary basis for up to 20 years Ministry of Municipal Affairs and Housing 97
96 Engaging With Aboriginal Communities As you do with your neighbouring municipalities, it makes good sense to improve upon or build strong positive relationships with Aboriginal communities Mutual interest in land use planning Use of traditional lands Commitment to a healthy environment Economic development Land use planning decisions Where there are Aboriginal interests municipalities should engage with Aboriginal communities as part of the land use planning process Ministry of Municipal Affairs and Housing 98
97 Economic Development through Land Use Planning Planning Act Tool Description Benefit Community Improvement Plans (CIPs) (Section 28) CIPs are tools used by municipalities as one means of planning and financing development activities that effectively use, reuse and restore lands, buildings and infrastructure. Municipalities can make grants or loans within CIP project areas to help pay for certain costs Brownfields Community Improvement Planning Provincial participation through the Brownfields Tax Incentive Program (BFTIP) matches municipal brownfield CIP property tax incentives with the provincial education tax portion. Can provide financial incentive by making cleanup and development less expensive. Development Permit System (Section 70.2) Protection of Employment Lands (Sections 22 and 34) Bonusing (Section 37) Optional land use planning tool that replaces a standard multi-layered development approval process (zoning, site plan and minor variance), with a single process No appeal of a council refusal to re-designate/ rezone lands from employment to other uses. Allows municipalities to give increased height and density as part of a zoning bylaw in exchange for the provision of specified facilities, services and matters. Results in a more streamlined, timely development process that: Reduces review timelines to 45 days Removes third party appeals to the Ontario Municipal Board (OMB) Allows municipalities to maintain a sufficient supply of serviced and ideally located (i.e. near transit, highways, ports, rail, airports) employment lands. Increased height and density maximize use of existing infrastructure in addition to receiving community benefits. Ministry of Municipal Affairs and Housing 99
98 Economic Development through Land Use Planning Planning Act Tool Description Benefit Reduction or waiving of application fees (Section A tool that provides that council may reduce or waive Could reduce the cost of planning approvals. 69) planning application processing fees. Conveyance of Parkland or Cash in lieu (Sections 42 and 51.1) Allows a municipality to pass a bylaw applicable to all or part of a municipality, which can require the conveyance of land (up to 5%) for park purposes or cash in lieu as a condition of development or redevelopment (s. 42) or as a condition of approval of a plan of subdivision (s. 51.1). Could act as a financial incentive if the bylaw excludes geographic areas where development/ redevelopment is desired or the condition is not imposed on plans of subdivision within that area. Reduction of Cash in Lieu of Parkland When Sustainability Criteria Met (Section 42) Where sustainability criteria set out in an OP are met and no land is available for conveyance a municipality may reduce cash in lieu of parkland Can reduce cost of development and redevelopment while improving sustainability (could result in energy savings) Reduction or Exemption from Parking Requirements (Section 40) Provides that council may enter into an agreement to reduce or exempt an applicant from parking requirements in exchange for cash payments Could reduce cost of development by not having to supply as much parking, which can require additional land or parking facilities. Ministry of Municipal Affairs and Housing 100
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