Corporation of the Town of Bradford West Gwillimbury Special Meeting 2006/16 M1NUTES March 28, 2006.L Members Present Mayor Frank Jonkman Deputy Mayor Denn'ls Roughley Councillor Del Crake Councillor Natalie Oykie Councillor Peter Dykie Councillor Mikki Nanowski Councillor Duncan Page Councillor Ron Simpson Councillor Doug White Staff Present: Others: Jay Currier, Town Manager Juanita Dempster-Evans, Clerk Susan Turnbull, Tryasurer Paul Feehely, Senior Engineering Technologist Kelly Losak, Manager of Human Resources Geoff McKnight, Director of Planning Gord Miokovic, Water and Waste Water Engineer Bob Myles, Chief, Fire and Emergency Services Miriam King, Bradford West Gwillimbury Times Liz Fenwick, CEO, Library Bob Doumani Peter Schut Gary Lamb Bill Dykie Jim Craig And others, 1. OPENING 16-001 Moved by: R. Simpson Seconded by: p, Oykie "That this special meeting of Council being held to review the Proposed Hnancial Plan and to approve By-laws 2006-033, 2006-034 and 2006-035 come to order at 7:10 p.m." CARRIED. 2. DECLARATIONS OF PECUNIARY INTEREST - DISCLOSURE OF INTEREST Councillor Natalie Dykie declared a Conflict of Interest with: - Budget (Capital) regarding Development Agreement portion, and - By-laws 2006-033,2006-034 and 2006 035 ADDITION TO AGENDA 3. BY-LAWS Councillor Natalie Dykie left the Council Chambers and did not participate on the discussion or voting on the by-laws as she and her husband own development land. 1. BY-LAW 2006-033 Being a By-law to authorize the execution of a Development Agreement with, Edwin Rosner, in trust, respecting the lands in Part of Lot 15, Concession 8 2. BY-lAW 2006-034 Being a By-law to authorize the execution of a Development Agreement with 790354 Ontario Inc. respecting the lands in Part of Lot 15, Concession 8
Special Meeting 2006/16-2 - March 28, 2006,~t 3. BY-LAW 2006-035 Being a By-law to amend By-law 2001-056 being the By-law enacted to authorize the Mayor and Clerk to execute a Subdivision Agreement for the Countryside Estates Phase 1, Plan 51 M-708 (BWG-T-99004) 16-002 Moved by: D. White Seconded by: R. Simpson "That By-laws 2006-033 to 2006-035 be taken as read a first, second and third time and finally enacted as By-laws of the Town of Bradford West Gwillimbury." CARRIED. Councillor Natalie Dykie returned to the Council table. 4. PROPOSED FINANCIAL PLAN I - I~ Susan Turnbull, Treasurer and Jay Currier, Town Manager presented a power point presentation on the Town's. Goals of today's meeting... Review rationale for completing the financial plan and developers prepayment plan; Discuss the basis for the financial plan and the developers prepayment plan; Discuss unknowns that will affect the Town's finances going forward; Look at advantages of the plans; Look at disadvantages of the plans; Review a couple of options for moving ahead; Decide on next steps. RATIONALE FOR THE PLAN Council resolutions of July 19, 2005 Council adopted position that Multi Use Recreation Facility and a new ice pad are top priorities of the Town. Directed staff to prepare a new capital plan to allow MURF to proceed as soon as possible. Directed staff to negotiate prepayments with developers to free up debt for use on ree centre. Directed staff to look at ways to reduce costs of rec centre, or phase the project, so that it could be undertaken sooner. MAIN ATTRIBUTES OF THE PLAN Councillor Natalie Dykie declared a Conflict of Interest as she and her husband own development lands. Councillor Dykie left the Council Chambers for this portion of the presentation. These are the main attributes underlying the plan. A prepayment plan involving at least the largest of the Towns developers. Developers would commit to providing water and waste water DC's for a fixed number of units (several thousand) over the next two years. Voluntary payment of $2000 per lot. The Town would avoid having to use debt for the next phase of water and waste water works. The Town would build both phases of WVl/TP now - developers would front-end both phases. The next phase of the Alcona wrp would proceed as soon as possible subject to agreement with Innisfil.
Special Meeting 2006/16-3- March 28, 2006 Councillor Natalie Dykie returned to the Council table. --I... These are the main attributes underlying the plan. (2) A new Town Hall (2007/08) and the Multi Use Recreation Facility (2008/10) are included in the plan. The Town would need to incur debt up to close to the maximum allowable by law (without a special approval). The debt calculation shows annual carrying costs slightly exceeding 20 percent of revenue fund revenues for a number of years. Debt capacity would be available for facilities construction because of the prepayment plan. UNKNOWNS There are many unknowns that could adversely affect the reliability of the plan. Some of these are as follows. J Transportation Costs Poulos transportation modeling report is not complete The projected works and cost estimate~ we are using were prepared as "best estimates". The recommendations of Poulos could involve costs in the millions or tens of millions in excess of current estimates. Transportation DC's need to be revised but local share of costs will also be substantially higher. There are many unknowns that could adversely affect the reliability of the plan. Some of these are as follows.(2) Water and Waste Water Treatment Plant Costs Contract costs for WVVTP expansions and next phase of Alcona WTP expansion are not known. If estimates are wrong, Town will be affected. Innisfill BWG Water Supply Agreement We do not know whether or not Innisfil is willing to begin work on next phase of Alcona Project Timing The scheduling for some capital projects will be incorrect in some cases. Projects (e.g. roads) may need to be completed earlier than estimated. There are many unknowns that could adversely affect the reliability of the plan. Some of these are as follows.(3) Other Project Costs We know that there are costs that have not been adequately identified and are not included in the plan, for example: - Outdoor recreation -IT Transit - Library Highway 400 I 88 Commercial Lands/Interphase No assessment or tax revenue assumptions have been made for the potential Highway 400 commercial I industrial lands. Same applies to Interphase lands. These revenues would be in addition to those already factored into the plan.
Special Meeting 2006/16-4- March 28,2006 The presence of unknown and unpredictable factors creates risk in the plan. ADVANTAGES OF THE PLAN There are some obvious advantages to the plan. New facilities have been included for construction in the foreseeable future MURF and Town' Hall The requirement for borrowing to pay for growth-related water and waste water infrastructure is substantially reduced. New revenues of $6,400,000 to the Town - would not otherwise be available. Town is somewhat protected from housing market fluctuations if DC's are paid ahead of time. If the housing market declines the Town does not have to wait for DC's associated with new subdivision agreements. DISADVANTAGES OF THE PLAN There are some disadvantages to the plan, some of which are not so obvious. With debt loads near the maximum allowable for a number of years, there is little room for error in estimates, and little room to make accommodations for unknowns. etc. In the event of a major catastrophe, there would be little debt space remaining to use for financing recovery efforts (e.g. a major water main break, a bridge failure, etc.) The Town assumes some risks that normally belong to the developers - costs over and above estimates for WWTP and next phase of Alcona WTP. There are some disadvantages to the plan, some of which are not so obvious. The plan effectively commits the Town to a course of action for the next 10 years. Because of high debt ratios there would be almost no room for discretion on the part of future Councils (maybe the next 2). BWG would likely be the most indebted municipality in Ontario. OPTIONS FOR MOVING AHEAD The staff position... Staff cannot recommend the plan. There are too many unknowns - more certainty is needed with respect to such things as transportation requirements, etc. There is arguably too much risk assumed by the Town. The debt ratio is too high and is well outside of the normal range for Ontario's municipal governments. The plan fetters the discretion of future Councils to an unacceptable extent. What are you able to do? There are many alternative approaches but two in particular are obvious alternatives. Most Conservative Approach No developers prepayment plan Postpone further work on MURF and Town Hall for a few years Clear up some of the unknowns - especially where costs are not pinned down Begin work on facilities when revenues and reserve funds are judged to be favourable
Special Meeting 2006/16-5 - March 28.2006 Modified Ree Centre Proceed with negotiating prepayment plan with developers Accept the inherent risks but try to reduce them Negotiate next phase of Alcona plant work with Innisfil Postpone Town Hall for now Begin design work on scaled-back version of MURF - $11 m Plan for future phases of MURF at a later date. Some implications of the alternatives... Most Conservative Approach Will have to use some debt capacity to finance water and waste water infrastructure Will have to manage timing for future W & WW plant expansions very carefully so development does not become stranded Cannot get a start on Town Hall or MURF for a few years at least Avoid risk transfer associated with prepayment agreement Forego potential voluntary contributions Avoid pushing debt to upper limits Modified Rec Centre Assume risks associated with prepayment plan Incur debt for some of MURF costs May have to use some of the Facilities Reserve Fund for the MURF (which precludes using it for the Town Hall) NEXT STEPS Members of Council provided the following comments: Councillor Crake: I feel like I'm at a funeral; the unknowns cancel out the ability to make any decision tonight; all too onerous, it is far more than just a risk; we are fulfilling our OP; I wanted a phased Recreation facility; risk is on taxpayer, not Council; at this stage we have no room for error, and no room for flexibility; to proceed would be a disservice to the health of this community, and once we know Poulos's numbers, I hope a phased Recreation facility can proceed but even phased has a risk. Councillor Peter Dykie: three years ago I saw this coming', we can't put existing and future residents at this risk; we have traffic problems now, and we need the money for roads when 3,500 new houses get built; every year we should review our Development Charges and amend them if need be,and we have to be in control, we can't just sell out. Councillor Natalie Dykie: supports need for capital program; acknowledged efforts of staff; does not support the Plan; taxpayers can't afford it; future council's should not be constrained; our priority has to be roads, and too many risks in the Plan as it stands.
Special Meeting 2006/16-6 - March 28, 2006 Councillor White:.. no one has talked about two options; philosophically do you support prepayment?; priority is the multi-use, not Town Hall; will advance multi-use by five years; where did conservative approach get us? We have high taxes and embarrassingly low service levels;.. you turn this down you are telling people there won't be work here and no recreation;.. clearly we can't endorse this plan with a $20 - $25 million dollar multi-use facility, but \ can support going ahead with an $11 million dollar multi-use fadlity; has conservative plan been successful over last 10-15 years?, I don't think so; the early DC gets us $6.5 million we otherwise won't get, and endorsing this tonight just says keep talking to developers, it is not committing Town to building multi-use facility. Councillor Page:.. we are at a dawn of new age; developers say they are going to have accelerated growth so we'll get DC money at full rate, not a prepayment rate;.. we need to take a deep breath; we've got to shut down a lot of capital including the new Police Station; growth is coming. it is not a risk, and.. I think we need more information, but if we take a vote tonight, I say take a conservative approach and shut everything down. Councillor Simpson: commend Jay and Susan;.. likes the most conservative approach being no developer prepayment;.. prepayment is just another form of debt; we have to clear up some of the unknowns over the next three to four years,.. Recreation Centre will happen but it may take six to seven years from now, and.. won't be a lot of money coming from 400/88 for first five years because of what we wit! have to spend to service it and fix up other roads near 400/8B. Councillor Nanowski: endorses conservative approach; agrees we have to watch WaterfWastewater Phase 2 expansions to ensure they are built when needed (not after we run out). and.. can't see adding this risk to our taxpayers. Deputy Mayor Roughley: in past we tried to provide for the best we CQuld with the funds;.. now we are being shown how there will be peaks and valleys;.. unknowns considerably outweigh the knowns; have to be fiscally responsible; concerned about hearing people say we don't have sufficient facilities;.. we have some great facilities and recreation programs and have done it responsibly;.. come back to issue of needs; first need is get our own house in order and that includes Innisfil Water Phase 2;.. have to look at what we have planned in OP; other challenges like IGAP;.. we always have choices but we have to make them wisely and fiscally responsible; I came here with a young family and want to stay here as a senior; profound statement to see in a Report of Town Manager we would be most indebted municipality in Ontario. He hopes this means of comparable size, and not all 440;.. keep dialogue open with developers;
Special Meeting 2006/16 March 28, 2006 Deputy Mayor Roughley - cont'd. for moment we need to concentrate on what we have, manage better, see if proiects can accelerate if and when it is fiscally responsible, and this is only showing you capital but no one is showing what it would cost to operate, maintain. Mr. Bob Doumani, legal counsel appeared before Council indicating he heard a few people suggest a voluntary payment might still materialize without an early DC Agreement, and he cautioned that this was not the norm. Mayor Jonkman reported that it was not the intent to make a decision now. That staff can go back and see if it can be phased. That the Treasurer could run more models. Councillors White and Crake requested that a modified phased multi-use facility be investigated. Mayor Jonkman suggested spending $3 million for the multi-use facility now and then in five years allocating another $3 million. The Town Manager indicated that the next Report should wait until after we have the Nick Poulos Plan. 5. ADJOURNMENT 16-003 Moved by: R. Simpson Seconded by: P. Dykie "That this special meeting of Council being held to review the Proposed Financial Plan and to approve By-laws 2006-033,2006-034 and 2006-035 close at 8:30 p.m." CARRIED. CONFIRMED IN OPEN SESSION THIS 13 th DAY OF JUNE 1 2006. ctt:"'~ -\Q)""",-," OJ ~ta Dempster-Evans erk