HomeMy WebLinkAboutApril 19, 2022 Budget Session Special Council Minutes CAPE BRETON REGIONAL MUNICIPALITY
Special Council Meeting—Minutes
BUDGET SESSION 2022-23
Tuesday,
April 19, 2022
9:39 a.m.
Council Chambers
2nd Floor, City Hall
320 Esplanade, Sydney, NS
Mayor McDougall called the meeting to order.
Present: Mayor Amanda M. McDougall
Councillor Gordon MacDonald
Deputy Mayor MacMullin
Councillor Cyril MacDonald (left at 2:00 p.m.)
Councillor Steve Gillespie
Councillor Eldon MacDonald
Councillor Glenn Paruch
Councillor Parsons
Councillor Edwards
Councillor Ken Tracey
Councillor Darren Bruckschwaiger
Councillor O'Quinn
Councillor Green
Staff: Marie Walsh, Chief Administrative Officer
John MacKinnon, Deputy Chief Administrative Officer
Jennifer Campbell, Chief Financial Officer
Deborah Campbell Ryan, Municipal Clerk
Demetri Kachafanas, QC, Regional Solicitor
Wayne MacDonald, Director of Engineering &Public Works
Michael Ruus, Director of Planning & Development
Michael Seth, Director of Fire & Emergency Services
Francis Campbell, Manager of Solid Waste
Kirk Durning, Manager of Recreation
Paul MacDonald, Manager of Facilities
Ray Boudreau, Senior Manager of Public Works
Tanya Johnson MacVicar, L'nu Advisor
Sharon MacSween, Senior Administrative Assistant
Tanya Nicholson, Recording Secretary
Absent: N/A
CBRM Special Council—April 19,2022
2022-2023 Capital&Operating Budget Session
APPROVED JUNE 14,2022 Page 2 of 9
Summary of Decisions
Welcome
Moment of Silent Reflection
Council agreed to observe a moment of silence for the twenty-two (22)Nova Scotians
who lost their lives in the mass murders two years ago in Portapique, Nova Scotia.
Continuation of Budget Sessions from April Stn and April 7th, 2022:
Motion to maintain the previously adopted motion to decrease commercial and
residential tax rates by 5%, but to phase it in over the next three years with 1.5% in the
first year, 1.5% in the second year and 2% in the third year. Motion Defeated.
Motion to approve the Blended Option 2 presented for the 2022-23 Capital Budget,
subject to an increase in the low-income property tax rebate to $300 per year for a total
annual household income of $35,000 and increasing the deed transfer tax revenue
estimate by $500,000. Carried.
Operating Budget 2022-2023:
Motion to approve the CBRM Operating Budget for 2022/23 totaling $162,223,985 as
presented. Carried.
Withdrawal from Capital Reserve:
Motion to approve withdrawal from the Capital Reserve in the amount of$100,000 for
the Louisbourg Waterfront Development Project. Carried.
Withdrawal from Operating Reserve:
Motion to approve withdrawal from the Operating Reserve totaling $3,689,842,
consisting of the municipal capacity top up funds in the amount of $3,484,842 and the
CBRM Forward/AT Plan contributions in the amount of$205,000. Carried.
CBRM Water Utility 2022/2023 Capital and Operating Budgets:
Motion to approve the CBRM Water Utility Operating Budget for 2022/23 as presented.
Carried.
Motion to approve the CBRM Water Utility Capital Budget for 2022/23 as presented.
Carried.
Continued...
CBRM Special Council—April 19,2022
2022-2023 Capital&Operating Budget Session
APPROVED JUNE 14,2022 Page 3 of 9
Summary of Decisions (Cont'd):
Required Borrowing:
Motion to approve the associated required borrowing resolutions for the Capital Budget
in the amount of$8,500,000. Carried.
Low Income Property Tax Exemption Policy:
Motion to approve the amendments to Low Income Tax Exemption Policy by increasing
the rebate to $300 annually and income threshold to $35,000. Carried.
ADJOURNMENT
CBRM Special Council—April 19,2022
2022-2023 Capital&Operating Budget Session
APPROVED JUNE 14,2022 Page 4 of 9
Welcome
Mayor Amanda M. McDougall welcomed Council and Staff back to the continuation of
the CBRM Budget Sessions for 2022/23.
Moment of Silent Reflection
Council agreed to observe a Moment of Silent Reflection for the twenty-two (22) Nova
Scotians who lost their lives in the mass murders two years ago in Portapique, Nova
Scotia.
Continuation of Budget Sessions from April Stn and April 7th, 2022:
Mayor McDougall noted that all presentations for the budget sessions have concluded,
thus the Chief Financial Officer will present various options to be considered based on
the motion of Council at the April 7h Budget Session to implement a 5% decrease in
commercial and residential tax rates.
Councillor James Edwards questioned if the 5% decrease could be phased in over three
years to make it more financially responsible for CBRM.
Point of Order:
Councillor Darren Bruckschwaiger raised a Point of Order that the motion to decrease
taxes by 5% was already passed at a previous meeting.
The Mayor acknowledged the Point of Order and advised that under Robert's Rules of
Order, if Council was to agree, a previously adopted motion can be amended. It would
require two-thirds majority as there was no prior notice to Council.
Councillor Edwards then put forward the following motion:
Motion:
Moved by Councillor Edwards, seconded by Councillor Parsons, to maintain the
previously adopted motion to decrease commercial and residential tax rates by 5%, but
to phase it in over the next three years with 1.5% in the first year , 1.5% in the second
year and 2% in the third year.
Continued...
CBRM Special Council—April 19,2022
2022-2023 Capital&Operating Budget Session
APPROVED JUNE 14,2022 Page 5 of 9
Continuation of Budget Sessions from April Stn and April 7t'', 2022 (Cont'd):
Motion Continued...
Discussion:
• Information regarding property valuation and taxation is on the CBRM website
• Staff was not directed to provide a draft budget with a 5%tax rate decrease
• Federal and Provincial Governments will benefit from the 5% tax rate reduction, as
well as big business
• Under the Municipal Government Act, Council cannot choose who gets a tax
reduction
• Low-income tax program is a rebate based on income levels
The Mayor then called for the vote on the motion.
Motion Defeated, with 9 Council members voting in the negative.
As requested, Jennifer Campbell, Chief Financial Officer (CFO), provided an updated
presentation on additional options to fund a 5% tax rate reduction for 2022/23 without
cuts to staff or municipal services. The CFO recommended the second berth be converted
to long-term borrowing in the next debenture, and discouraged using the operating
reserve. Staff recommended Blended Option 2 which includes amendments to Low
Income Tax Exemption Policy by increasing the rebate to $300 annually and income
threshold to $35,000 and the redistribution of funds for the following projects:
• Active Transportation
• Louisbourg Fortress Downtown Development
• Port of Sydney
• Vehicles and equipment
• Centre 200
• Library
• J-Class Roads
After the update, Council agreed to relax the speaking rules to allow Council to speak 5
minutes per person without limit. Council then proceeded to discuss the following:
• Increasing the projected Deed Transfer Tax revenue
• Decreasing funds allocated for the library
• Hazmat unit deferred until next year
• Low-income tax rebate qualifications and application process
Continued...
CBRM Special Council—April 19,2022
2022-2023 Capital&Operating Budget Session
APPROVED JUNE 14,2022 Page 6 of 9
Continuation of Budget Sessions from April Stn and April 7t'', 2022 (Cont'd):
• Reducing budget allocation for Roads
• Phasing Centre 200 renovations over next three years (during the off season)
CBRM's obligation for the Louisbourg Fortress Downtown Development project
• Approximately 80 lots to be developed on the remaining J-Class Road to be paved
(est. cost$3 million)
• Funds allocated for Active Transportation
At this point in the meeting, Mayor McDougall noted that there will be a Special Council
meeting on May 17'h with the Provincial Department of Public Works to have
conversations about their 5-year plan and their current budget.
The CAO advised the $3 million identified for the library was going to be borrowed
money. She also noted there was never a land appraisal for the waterfront, and the $4
million value was an estimated amount. The CAO said that staff agree that the library is a
priority.
Mayor McDougall said it is important to note that by raising the low income tax
threshold to $35,000 per household and the rebate to $300, this would equate to an
additional $540,000 cost in the budget. She noted that if the deed transfer tax revenue
was raised, the amount could potentially cover it. She advised that staff could work over
lunch break on options to increase the deed transfer tax rate and charges to the low-
income tax policy.
The location of a new Sydney Library project was discussed. The Mayor advised at this
time there has been no decision made by Council to go forward with any options for the
library. CBRM is exploring options and they would go through a public consultation
process for feedback.
The CAO suggested Council consider Blended Option 2 with two different options within
it: one that includes and does not include roads; and also a couple of scenarios for the
low-income property tax rebate.
The Mayor asked each Councillor individually what option they would prefer. All
Councillors indicated they preferred Blended Option 2 with increasing the tax rebate to
$300 annually and the household income threshold to $35,000.
Many Councillors were concerned about paving of the roads. The CAO confirmed that
reduction to the budget for the roads was not in the Blended Option 2.
Continued...
CBRM Special Council—April 19,2022
2022-2023 Capital&Operating Budget Session
APPROVED JUNE 14,2022 Page 7 of 9
Continuation of Budget Sessions from April Stn and April 7t'', 2022 (Cont'd):
The following motion was then brought forward:
Motion:
Moved by Councillor Bruckschwaiger, seconded by Councillor Paruch, to approve the
Blended Option 2 presented for the 2022/23 Capital Budget, subject to an increase in the
low-income property tax rebate to $300 per year for a total annual household income of
$35,000 and increasing the deed transfer tax revenue estimate by $500,000.
Discussion:
Following the discussion on the motion, Mayor McDougall called for the vote.
Motion Carried.
Council recessed for lunch at 12:06p.m.
Council reconvened at 2:08 p.m.
Mayor McDougall noted that the Chief Financial Officer compiled information based on
this morning's discussions around the Blended Option 2 and the impact it would have on
the Operating Budget.
Budget Summary—Required Motions:
Jennifer Campbell, Chief Financial Officer, provided an updated slide "Budget Summary
Required Motions". She noted that the Deed Transfer Tax revenue estimate has been
changed from $500,000 to $1 million to offset the additional funds required for the
increase to the low-income tax exemption program, based on an estimate of 3,000
applications. With these changes, CBRM's revised operating budget is $162,223,985.
The required motions were then put forward, as follows:
CBRM Operating Budget 2022/23:
Motion:
Moved by Deputy Mayor MacMullin, seconded by Councillor Gordon MacDonald, to
approve the CBRM Operating Budget for 2022/23 totaling $162,223,985 as presented.
Motion Carried.
CBRM Special Council—April 19,2022
2022-2023 Capital&Operating Budget Session
APPROVED JUNE 14,2022 Page 8 of 9
Withdrawal from Capital Reserve:
Motion:
Moved by Councillor Edwards, seconded by Councillor Parsons, to approve withdrawal
from the Capital Reserve in the amount of $100,000 for the Louisbourg Waterfront
Development Project.
Discussion:
Following the discussion on the motion, Mayor McDougall called for the vote.
Motion Carried.
Withdrawal from Operating Reserve:
Motion:
Moved by Councillor O'Quinn, seconded by Councillor Paruch, to approve withdrawal
from the Operating Reserve totaling $3,689,842, consisting of the municipal capacity top
up funds in the amount of $3,484,842 and the CBRM Forward/AT Plan contributions in
the amount of$205,000.
Motion Carried.
CBRM Water Utility 2022/23 Operating and Capital Budgets:
Motion:
Moved by Councillor Green, seconded by Councillor Bruckschwaiger, to approve the
CBRM Water Utility Operating Budget for 2022/23 as presented.
Motion Carried.
Motion:
Moved by Councillor Gordon MacDonald, seconded by Councillor Paruch, to approve
the CBRM Water Utility Capital Budget for 2022/23 as presented.
Motion Carried.
Required Borrowing:
Motion:
Moved by Councillor Gillespie, seconded by Councillor Paruch, to approve the
associated required borrowing resolutions for the Capital Budget in the amount of
$8,500,000.
Motion Carried.
CBRM Special Council—April 19,2022
2022-2023 Capital&Operating Budget Session
APPROVED JUNE 14,2022 Page 9 of 9
Low Income Property Tax Exemption Policy:
Motion:
Moved by Councillor Gillespie, seconded by Councillor Paruch, to approve the
amendments to Low Income Tax Exemption Policy by increasing the annual rebate to
$300 and income threshold to $35,000.
Motion Carried.
Mayor McDougall thanked Council and staff for all their work on the 2022/23 Capital
and Operating Budgets.
Meeting adiourned at 2:19 p.m.
Mayor Amanda M. McDougall Deborah Campbell Ryan
Am Municipal Clerk