COMMITTEE OF THE WHOLE

FOR THE

MUNICIPALITY OF THE DISTRICT OF SHELBURNE

June 13, 2011

The Committee of the Whole Meeting for the Municipality of the District of Shelburne was held on Monday, June 13, 2011 commencing at 5:00 pm in the Council Chambers of the Municipal Administration Building, Shelburne, Nova Scotia.

THOSE IN ATTENDANCE WERE:
Warden Sherm Embree
Councillor Norman Wallet
Councillor Roger Taylor
Councillor Doris Townsend
Councillor Cathy Holmes 
Kirk Cox, CAO
Dwayne Carey, Director of Finance
Erin Hartley, Recording Secretary
Marilyn Johnston, Director of Recreation & Parks

REGRETS:
Councillor Ardith VanBuskirk
Penny Smith, Municipal Clerk
Deputy Warden John Roscoe

ALSO PRESENT:
Members of the Public

1.  CALL TO ORDER:

The Meeting was called to order at 5:00 pm by Warden Embree.

2.  APPROVAL OF MINUTES:

Being duly moved and seconded, be it resolved that the Minutes of May 9, 2011 be approved as circulated.
-MOTION CARRIED

3.  APPROVAL OF AGENDA:

Being duly moved and seconded, be it resolved that the Agenda of June 13, 2011 be approved with the following amendments:
            10. (a)  Vaughn Munroe
            10. (b)  SWSDA
            10. (c)  Invitations
              7. (c)  Move to APS
             
                                                                                    -MOTION CARRIED

4.  PRESENTATIONS:

None

5. BUSINESS ARISING FROM THE MINUTES

None

6.  MEMBERS OF COUNCIL:

None

7.  STAFF REPORTS:

(a)  Grants to Organizations 2011/12
(b)  Amendment to Low Income Property Tax Exemption Policy
(c)  2011/12 Operating, Reserve and Capital Budgets and Tax Rate 

7. (a) Marilyn Johnston, Director of Recreation and Parks advised that an ad inviting organizations to make a grant application was placed in the Coast Guard Newspaper three times and posted on the Municipal Website with a due date of January 31, 2011.  54 applications were received and through the course of five meetings, the Grants Committee sorted, reviewed and suggested grant amounts for each applicant.

Discussion was held regarding budget, support grant dependency, recurring applicants, tax reduction by-laws and community grants from external sources.

MOTION: MUNICIPAL GRANTS TO ORGANIZATIONS 2011/12

Being duly moved and seconded, be it resolved that Committee of the Whole recommend to Council that the staff report regarding Municipal Grants to Organizations 2011/12 be approved, which states that:

• Budget allocations for 2011/12 for Grants to Organizations (account #0021950791 Fiscal Services) and Recreation & Parks (account #0027120791) remain the same as in 2010/11.
• Council support the work of community volunteer organizations by approving the recommendations of the Grants to Organizations Committee in the amount of $39,305 as per the attached Schedules A- Support Grants- Community Based Organizations; B- Community Recreation & Parks Grants; C- Community Heritage Grants; D-Community Festival and Events Grants; and E- Community Capital Grants with funds available from account #0021950791 Fiscal Services and account #0027120791 Recreation & Parks.
• Council retain remaining funds of $695 (account #0021950791 Fiscal Services) for any additional grant requests during 2011/12.
• Council allow the remaining grant funds available in account #0021950791 Fiscal Services to be used for Museum and Tourism activities should there be a need.

-MOTION CARRIED

7.  (b)   Dwayne Carey, Director of Finance, advised that during budget deliberations Council determined an amendment was required to the Low Income Property Tax Exemption Policy to remove the condition of applying a credit of 30% of the total taxes up to $200 to the current year’s tax balance. The new policy will reflect the exemption at a maximum of $200 applied toward the current year’s taxes.

MOTION: AMENDMENT TO LOW INCOME PROPERTY TAX EXEMPTION

Being duly moved and seconded, be it resolved that Committee of the Whole recommend to Council that the staff report regarding Amendment to Low Income Property Tax Exemption Policy be approved, which states that:

• The Low Income Property Tax Exemption Policy be approved as amended.

-MOTION CARRIED

7. (c)  This item was moved to the June APS Meeting.

7. (d)  MOTION: 2011/12 OPERATING, RESERVE AND CAPITAL BUDGETS AND TAX RATE

Being duly moved and seconded, be it resolved that Committee of the Whole recommend to Council that the staff report regarding 2011/12 Operating, Reserve and Capital Budgets and Tax Rate be approved, which states that:

• The residential  and resource tax rate for fiscal 2011/12 be set at $1.28 per $100 of assessment;
• The commercial tax rate for fiscal 2011/12 be set at $1.82 per $100 of assessment;
• The forest rate be set at $0.25 per acre for acreage designated as resource and $0.40 per acre for acreage designated as commercial;
• The due date for the final tax billing be October 31, 2011;
• An interim tax bill be sent for fiscal 2012/13, being 60% of the previous year’s total tax bill with the due date of the interim tax bill being April 30, 2012;
• The interest rate on taxes outstanding continue at 14% (fourteen percent) per annum calculated monthly;
• The gross operating budget be set at $5,542,429;
• The sewer service charge be set at $260;
• The reserve budget as tabled in May 2011 be approved;
• The capital budget as tabled in May 2011 be approved;
• The area rate for the Port Clyde and Area Fire Services be confirmed at $0.065 per $100 of assessment for those properties serviced by the Port Clyde Volunteer Fire Department;
• The area rate for the Sable River and Area Fire Services be set at $0.039 per $100 of assessment for those properties serviced by the Sable River Volunteer Fire Department;
• The area rate for the Little Harbour and Area Fire Services be set at $0.089 per $100 of assessment for those properties services by the Little Harbour Volunteer Fire Department.

-MOTION CARRIED

AMENDMENT TO MOTION: 2011/12 OPERATING, RESERVE AND CAPITAL BUDGETS AND TAX RATE

Being duly moved and seconded, be it resolved that Committee of the Whole recommend to Council that the motion be amended to reflect the following:

• The area rate for the Sable River and Area Fire Services be confirmed at $0.053 per $100 of assessment for those properties serviced by the Sable River Volunteer Fire Department;

-MOTION CARRIED

Discussion was held regarding the long and detailed budget deliberations, maintaining the commercial rate, lowering the residential tax rate, community and economic development funding and creating flexibility in the budget.

8. COMMITTEE REPORTS:

None

9.  INFORMATION AND OTHER REPORTS:

(a)  Physical Activity and Community School Coordinator Report (May, 2011)
(b)  Assistant to the Director of Recreation and Parks Report (May, 2011)
(c)  Building Inspection Report (May, 2011)
(d)  Recreation and Parks Advisory Committee Minutes (May, 2011)
(e)  Ministerial Order – Royal Bank Loan Guarantee

9. (a)  This item was noted.

9. (b)  This item was noted. 

9. (c) This item was noted, with discussion regarding the decrease in building revenues over this time last year.

9. (d)  This item was noted.

9. (e)  Kirk Cox, CAO advised Council of the Order received from the Minister to pay the SWSDA Loan Guarantee to the Royal Bank of Canada.  Discussion was held regarding the history of this issue, the Municipal Government Act, the lack of forthcoming information from RBC and the government, the original purpose of the funding to bridge financing and the action of other municipal units involved.

It was noted that penalties for Councillors who vote against a motion to follow the Order are fines, jail term and/or removal from office.  It was agreed that the Order be followed, but staff continue to aggressively seek information regarding the loan guarantee from the province and RBC.
 
MOTION: ROYAL BANK LOAN GUARANTEE

Being duly moved and seconded, be it resolved that the Royal Bank Loan Guarantee payment be approved as follows:

• Whereas the government of Nova Scotia has unilaterally intervened on behalf of the Royal Bank of Canada and issued a Ministerial Order to settle a loan guarantee between the Southwest Shore Development Authority and the Royal Bank of Canada;
• Whereas the Ministerial Order effectively promotes the Royal Bank of Canada ahead of all other SWSDA creditors including community organizations and small businesses located in Southwestern Nova Scotia;
• Whereas the Nova Scotia Ombudsman has ruled that it contravenes the Municipal Government Act to pay outstanding SWSDA loan guarantees to the Royal Bank; and
• Whereas this is an unprecedented use of Section 456 of the Municipal Government Act with a penalty of a fine of up to ten thousand dollars, or imprisonment up to twelve months, or removal from office;
• It is recommended that the Municipality of Shelburne meet the conditions of the Ministerial Order dated May 30, 2011 from Minister John MacDonnell;
• It is recommended that $144,925.29 be expended from the operating reserve to fund this Order.

-MOTION CARRIED

The CAO was thanked for all his time and effort on this file.  It was noted that Council should learn from this experience to avoid getting involved in such instances in the future and that follow up and continued information seeking is required on this file.

10.   ADDED ITEMS:

(a)  Vaughn Munroe
(b)  SWSDA – Notice to Creditors
(c)   Invitations

10. (a)  Councillor Taylor advised that Vaughn Munroe, a resident from his District and a long time attendee of Council meetings, passed away over the weekend.  Condolences were extended to his family and friends.

10. (b)  Warden Embree advised that the SWSDA bankruptcy trustee extended the notice to creditors to June 14th.  It was noted that the trustee would like to have the municipal units paid after the non-governmental and conditional creditors (largely employees) have been paid.

Discussion was held regarding the Seacoast Entertainment Arts property foreclosure including court ordered receivership, closure and liquidation of assets.

10. (c)  Warden Embree noted that an invitation was received for a presentation on the Jobs Here Initiative which will take place on June 24th at 2:00 pm at the Best Western in Bridgewater. Councillor Taylor and Warden Embree will attend.

An invitation was received for Bob Forbes’ Retirement Function.  It will be held on Sunday, June 26th at 6:00 pm at the West Pubnico Golf Course.  Councillor Wallet and Councillor Taylor will attend.

11.  MOTION: ADJOURNMENT

Being duly moved and seconded, be it resolved that there being no further business, the meeting be adjourned at 6:08 pm.