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April 21, 1998



To:Strategic Policies and Priorities Committee

From:City Clerk

Subject:Payment of Association of Municipalities of Ontario 1998 Membership Fee

Recommendations:

The Budget Committee on April 20, 1998, recommended to the Strategic Policies and Priorities Committee, and Council:

1.that its previous deicison on April 3, 1998, that the City's contribution to the Association of Municipalities of Ontario be equivalent to the amount paid by the former Municipality of Metropolitan Toronto in 1997, be rescinded;

2.the adoption of the report (April 16, 1998) from the Chief Financial Officer and Treasurer; and

3.that AMO membership fees in future years be based on the same assessment used for all other cities.

Background:

The Budget Committee on April 20, 1998, had before it the following:

(a)report (April 16, 1998) from the Chief Financial Officer and Treasurer regarding the payment of Association of Municipalities of Ontario 1998 Membership Fee; and

(b)memorandum (April 16, 1998) from Councillor Joan King regarding City of Toronto support for municipal organizations.

The following Members of Council appeared before the Budget Committee in connection with the foregoing matter:

-Councillor Joan King, Seneca Heights; and

-Councillor Howard Moscoe, North York Spadina.

City Clerk

Barbara Liddiard/rc/ay

Item No. 17 and 24

Attachment

 c.Chief Financial Officer and Treasurer

Chief Administrative Officer

Mr. Al Shultz, Finance Department



(Report dated April 16, 1998, addressed to the Budget Committee from the Chief Financial Officer and Treasurer)

Purpose:

To obtain approval for payment of Association of Municipalities of Ontario 1998 membership fee.

Financial Implication:

Funds are provided in the Sundry at Large Account - Corporate Expenditures.

Recommendations:

That the Chief Financial Officer & Treasurer be authorized to pay 1998 membership for the Association of Municipalities of Ontario in the amount of $68,532.33 in accordance with the stated formula for 1998 AMO membership fees as contained in Appendix C.

Discussion:

The Budget Committee, at its meeting of April 3, 1998, recommended to restrict the amount of 1998 AMO membership fees paid by the City of Toronto to the amount paid by the former Metro in 1997. The fee paid by Metro in 1997 amounted to $14,139.25. Appendix A details the membership fees paid in 1997 by the former municipalities. In 1997 the Councils of the former Cities of North York and Scarborough did not approve payment of AMO membership fees. The combined fees billed in 1997 for all seven municipalities was $99,604.67. The combined fees paid in 1997 for five of the seven former municipalities was $66,060.99. Previously the area municipalities were billed under the fee schedule for lower tier municipalities while Metro was billed as an upper tier municipality. If the standard membership fee structure, for a separate City as per Appendix C, was used for the City of Toronto, membership fees for 1998 would have been $68,532.33 based on the 928,039 household reported by Metro in the 1996 Annual Financial Report.

AMO has billed the City for 1998 fees in the amount of $106,498.80, which is not based on households as in previous years, but rather on the amount of property tax paid by AMO. The attached document from AMO, Appendix B, details the reasons why AMO proposes not to invoice the City using the same fee structure as other Ontario municipalities. As the letter indicates, the payment for the City would be reduced if the actual amount of property taxes paid by AMO is less than estimated.

Contact:Al Shultz-416 397-5240

Finance Department

Appendix A

  City of Toronto

Schedule of AMO Membership Fees

Billed in 1997

    

 Municipality  Fee Paid 1997

$

  $
 East York  8,263.24   
 Etobicoke  12,390.12   
 York  8,902.51   
 Toronto  22,365.87   
 Metro  14,139.25  66,060.99
  
  
 Municipality  Fee Not Paid

$

  $
 Scarborough  15,702.59   
 North York  17,841.09  33,543.68
  
 Total Fee Billed     99,604.67
  
  
 NOTE: NORTH YORK FIGURE IS FROM 1996 FEES



(A copy of Appendices B and C, is on file in the Office of the City Clerk.)



(Memorandum dated April 16, 1998, addressed to the Budget Committee from Councillor Joan King)

 Historically, the fee for membership to the Federation of Canadian Municipalities (F.C.M.) was paid by the former Metro government whereas the fee for membership to the Association of Municipalities of Ontario (A.M.O.) was shared by the former local municipalities and the former Metro. The staff report dated September 8, 1997 indicated the following fee structure:



Association
$

1997 Actual

$

1998 Estimate

Association of Municipalities of

Ontario (A.M.).)



14,139


100,000
Federation of Canadian

Municipalities (F.C.M)



116,000


116,000
International Union of

Local Authorities (I.U.L.A.)

7,000 7,000
World Association of Major

Metropolises (W.A.M.M.)

40,000

(9,768 Cdn)

42,000 F.F

The Budget Committee recommended that the AMO fee be reduced to $14,000 (the amount paid by Metro in 1997).

Why should the City support AMO?

AMO is an effective lobbying voice bringing the municipal perspective to the Provincial government. In January 1997, for example, the Province announced new responsibilities for municipalities including 100% of the cost of social housing and 50% of the cost of social assistance and long-term care. AMO, with tremendous support from its members, exerted considerable pressure and the Province decided to remove financial responsibility for long-term care (nursing homes) from the property tax base and to reduce the municipal share of social assistance costs from 50% to 20%. Without these changes, the financial impact would have been significantly greater (i.e. 100% funding on long-term care in Toronto would break us). AMO was able to convince the Province to retreat from its "Megaweek" announcements and further has pushed the government for additional financial assistance amounting to $30 million.

On February 6, 1998 at a special meeting of AMO's membership, significant changes were made to the Association's structure and operations. The City of Toronto will appoint 7 members to the Board of AMO and will have the opportunity to have strong input into AMO's policy and to influence government thinking.

One of the key changes approved by the membership in February, was to give the Association clear authority for the Executive and the Board to respond promptly to the Province on municipal affairs. Currently, AMO has Task Forces which will be meeting with the appropriate ministers to bring municipal concerns to their attention. Many Toronto staff and Councillors are working on these Task Forces.

A Municipal Act Task Force

A Referendum Act Task Force

A Restructuring of Ontario Hydro Task Force

A RCO Roles and Responsibilities Report Task Force

A Social Housing Reform Task Force

As a result of the massive transfer of responsibility, it is critical that the Provinces' actions are evaluated and monitored. AMO is doing this and the City's involvement is important.

It is essential that Municipalities in Ontario have a strong collective voice and that the City of Toronto take a leadership role on the Board of AMO.

 

   
Please note that council and committee documents are provided electronically for information only and do not retain the exact structure of the original versions. For example, charts, images and tables may be difficult to read. As such, readers should verify information before acting on it. All council documents are available from the City Clerk's office. Please e-mail clerk@city.toronto.on.ca.

 

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