Body: Planning Committee Type: Document Meeting: Regular Date: 2018 Collection: Agenda Attachments Municipality: Frontenac County
[View Document (PDF)](/docs/frontenac-county/Item Attachments/Agenda Item/2019/February/2019-005 Planning and Economic Development Frontenac Renovates Reserve to offset 2018 K&P Trail Costs/Frontenac Renovates Reserve to offset 2018 K&P Trail Costs.pdf)
Document Text
Report 2019-005 Committee of the Whole Recommend Report To:
Warden and Council
From:
Kelly J. Pender, Chief Administrative Officer
Prepared by:
Richard Allen, Manager of Economic Development Susan Brant, Director of Corporate Services/Treasurer
Date of meeting:
February 6 and 7, 2019
Re:
Planning and Economic Development – Frontenac Renovates Reserve to Offset 2018 K&P Trail Costs
Recommendation That the County of Frontenac allocate the remainder of the current Frontenac Renovates Reserve to the remaining costs associated with K&P Trail property acquisition. Background At the May 18, 2016 Budget, Council was provided with an update on the status of County held reserves and reserve funds Report 2016-061. At the September 21, 2016 meeting, Council considered Report 2016-104 which provided the recommendation for 75% of the Frontenac Renovates Reserve to be used for costs associated with K&P Trail Land Acquisition and the Verona Trailhead clean up. This report identifies additional acquisition expenses and recommends that the remaining 25% of the Frontenac Renovates Reserve be used for these costs. As a result, Council passed the following resolution, which required the remaining 25% of the Frontenac Renovates Reserve to be reviewed no later than September 2017: f)
2016-104 Corporate Services Reserve Account Decisions (Frontenac Renovates and Seniors Issues)
Motion #: 162-16
Moved By: Seconded By:
Councillor Inglis Councillor Nossal
That the County of Frontenac allocate 75% of the current Frontenac Renovates Reserve to the K&P Trail property acquisition reserve and the Verona Trail Head project, with the balance to be reviewed no later than September 2017. Carried Resolved That the County of Frontenac endorse the funding allocation and disbursements formulas for Seniors Housing projects and that payments to member municipalities be administered by staff as outlined Staff Report 2016-104. Carried Comment Frontenac Renovates: The current balance in the Frontenac Renovates reserve is $100,857.50. The reserve was established in 2014 through surplus funds from the Discretionary Residency Benefit Fund. The City of Kingston reinvested its share of the municipal surplus funds from the Residency Benefit Fund into Homelessness Programs, Kingston-Frontenac Renovates, and Poverty Reduction Initiatives, and as the Service Manager, explored the possibility with the County of Frontenac for its surplus funds to be similarly reinvested into Homelessness Programs, Kingston-Frontenac Renovates, and Poverty Reduction Initiatives. This surplus of funds resulted when the Ministry of Community and Social Services (MCSS) provided a onetime grant funding to the City of Kingston (as the Service Manager) in the amount of $1.113M to support the Service Manager in transitioning to the new consolidated Community Homelessness Prevention Initiative (CHPI). Kingston City Council approved the allocation of this one-time funding to be allocated to the City of Kingston and County of Frontenac Discretionary Residency Benefit program. This funding was allocated to allow the municipality to top-up the Discretionary Residency Benefit to 70% of the previous Community Start Up and Maintenance Benefit (CSUMB) level, in the anticipation that the Discretionary Residency Benefit program would continue to be utilized as in past years. Since more stringent requirements were incorporated into the Discretionary Residency Benefit application process, the utilization of the Discretionary Residency Benefit had been far less than anticipated. Given that the Discretionary Residency Benefit fell within the CHPI funding level, this funding could be reallocated in part to other homelessness initiatives; however this funding was required to be expended by March 31, 2014. In order to spend the funding by the March 31, 2014 deadline, Kingston City Council reallocated this funding and as a result of this one time funding from the Ministry of Community and Social Services (MCSS), the 2013 budget process resulted in a surplus of funds that was returned to the County of Frontenac.
Recommend Report to Committee of the Whole Planning and Economic Development – Frontenac Renovates Reserve to Offset 2018 K&P Trail Costs February 6 and 7, 2019 Page 2 of 4
In anticipation that the Ontario Renovates program would be ended by the Province during their 2014/15 budget season. This amount would have allowed our service delivery manager (City of Kingston) to continue to deliver the program in Frontenac. The current City budget for this program is $200,000 annually across both the County and the City. The Ontario Renovates program provides financial assistance to low income homeowners by way of a forgivable loan in order to repair their home while improving the energy-efficiency of the unit, and/or increase accessibility of their unit through modifications and adaptions. The current program is means tested and limited in scope to health and safety, accessibility, structural and energy efficiency. The full program description can be found at Kingston Frontenac Renovates Program The current program is more popular in the County than in the City. We are advised that the Province has committed to funding the project through 2019 at which time it may or may not be renewed by the Province. Three options:
- Program is renewed by the Province and funding continues
- Program ends in 2019 and is ended by the City
- Program ends in 2019 and the City/County agree to divert tax/reserve dollars to continue the program Land Acquisition The process of acquiring the rail bed between Tichborne and Sharbot Lake was a difficult and time consuming process. This 13.5 km stretch involved 31 parcels of land, each with a unique landowner and parcel of land being divided. In many cases, a survey was required to separate the former rail bed parcels of land from the existing lot fabric, and easements were necessary to allow landowners to continue to access their entire property when intersected by the Trail route. Survey was also required when it has been necessary to divert the trail route from the rail bed due to constraints such as homes built directly on the former track. Finally, in a few small cases, it was necessary to expropriate land to connect parcels already acquired by the County. This process resulted in more legal fees and survey costs than originally anticipated. Total additional land acquisition costs amount to approximately $458,129. Staff are recommending that the remainder of the current Frontenac Renovates program be used to cover additional costs associated with land survey, negotiation, and expropriation of parcels for the K&P Trail.
Recommend Report to Committee of the Whole Planning and Economic Development – Frontenac Renovates Reserve to Offset 2018 K&P Trail Costs February 6 and 7, 2019 Page 3 of 4
Sustainability Implications Prudent management of reserves is an important aspect of the County’s long range financial plan. The timing and allocation of reserves is an important component of cash flow management and maximizes interest earned. The completion of the K&P Trail has been a long-term goal for Frontenac County. Financial Implications Should Council support the recommendation from staff it would result in the depletion of the Frontenac Renovates Reserve. Organizations, Departments and Individuals Consulted and/or Affected Jannette Amini, Manager of Legislative Services/Clerk
Recommend Report to Committee of the Whole Planning and Economic Development – Frontenac Renovates Reserve to Offset 2018 K&P Trail Costs February 6 and 7, 2019 Page 4 of 4
