Report To: Manitoulin-Sudbury District Services Board
From: Connie Morphet, Director of Finance and Administration
Date: January 28, 2021
Re: Power Dam Apportionment – Issue Report
The Town of Espanola sent a letter to the Board chair, along with a Treatment of Power Dam Grant Revenue report prepared by Municipal Tax Equity (MTE) Consultants Inc.
Power Dams for 2001 and subsequent years are exempt from direct taxation under Bill 140. The three municipalities with Power Dam are Espanola, Nairn and Sables-Spanish River. These municipalities have been paid a grant equal to the loss in taxes. This exemption led to an issue as to how the municipal levy should be collected by DSB.
At the May 27, 2004 Board meeting, the Manitoulin-Sudbury DSB passed the following Resolution:
Resolution No. 04-46
Moved by: Earle Freeborn
Seconded by: Laurier Low
THAT the DSSAB proceed to activate the legislated Double Majority vote requirement mechanism required to determine if the DSSAB’s member municipalities (both organized and unorganized) pronounce themselves either for or against the inclusion of the Power Dam grants that some of our member municipalities receive factored into the DSSAB’s Municipal Cost Apportionment Formula for future years commencing with the DSSAB’s year 2005 operating year.At the October 28, 2004 Board meeting, the Manitoulin-Sudbury DSB passed the following Resolution:
Resolution No. 04-110
Moved by: Laurier Low
Seconded by: Les Gamble
WHEREAS THE MANITOULIN-SUDBURY DISTRICT SOCIAL SERVICES ADMINISTRATION BOARD canvassed its member municipalities to have them record whether or not they wished to see the DSSAB’s annual municipal cost apportionment formula adjusted to include power dam grants in the revenues that its member municipalities receive in the DSSAB’s determination of the municipal share of the annual DSSAB budget that is attributed to and payable by each of its municipal member;
AND WHEREAS the DSSAB’s member municipalities have indicated, by way of a Double Majority Vote, that they would recommend the inclusion of said municipal Power Dam revenues in the DSSAB’s calculation of the municipal share of its annual budget that is attributed to each member municipality;
BE IT THEREFORE RESOLVED THAT THE DSSAB accept the registered results of its member municipalities’ Double Majority Vote and commence to include municipal Power Dam revenues in the weighted assessment formula that it uses to determine that portion of the municipal share of the DSSAB’s approved annual budget that is apportioned to and payable by each of its member municipalities;
AND BE IT THEREFORE FURTHER RESOLVED THAT THE DSSAB’s inclusion of Power Dam revenues in its annual municipal cost apportionment formula come into effect with the DSSAB’s 2005 budget year which commences on January 1, 2005.
On October 25, 2019 the Town of Espanola sent a letter to the DSB CAO requesting a review of the Power Dam Apportionment. At the November 2019 board meeting, the board reviewed the power dam apportionment at the request of the Town of Espanola. The original Power Dam Apportionment Resolution 04-110 was reviewed, and the Board reaffirmed that the Power Dam revenues be included in the apportionment formula. The resolution below was approved at the November 28, 2019 Board meeting.
Resolution 19-91
Moved by: Arthur Hayden
Seconded by: Vern Gorham
WHEREAS the Town of Espanola’s letter dated Oct 25, 2019 has requested that the Board review the method in which the Power Dam apportionment is calculated; and
WHEREAS the Board has reviewed the letter from the Town of Espanola and the original Power Dam Apportionment Resolution 04-110 that was carried after a double majority vote in 2004.
THEREFORE BE IT RESOLVED THAT the Board reaffirms 2004 resolution that the Power Dam revenues be included in the apportionment formula; and
FURTHER BE IT RESOLVED THAT the Board direct staff to clearly show the power dam revenues in the 2020 Apportionment documents that are distributed to municipalities.
This resolution directs staff to clearly show the Power Dam revenues in the 2020 Apportionment documents that are distributed to municipalities. A letter was sent to the Town of Espanola advising of this decision.
The chart below has been prepared by DSB staff, based on the impact the Town of Espanola’s consultant’s report would have on the 2021 apportionment calculation.
| Municipality | Current 2021 Apportionment | Proposed by MTE for 2021 | Variance Increase (decrease) |
|---|---|---|---|
| Assiginack | $380,156 | $383,055 | $2,899 |
| Gordon / Barrie Island | $289,835 | $292,045 | $2,210 |
| Cockburn Island | $23,385 | $23,564 | $179 |
| Billings | $358,257 | $360,990 | $2,733 |
| Central Manitoulin | $803,219 | $809,348 | $6,129 |
| Burpee & Mills | $149,813 | $150,955 | $1,142 |
| Tehkummah | $156,682 | $157,877 | $1,195 |
| NEMI | $1,073,834 | $1,082,027 | $8,193 |
| Gore Bay | $140,019 | $141,087 | $1,068 |
| Killarney | $660,390 | $665,428 | $5,038 |
| Baldwin | $123,700 | $124,643 | $943 |
| Chapleau | $196,921 | $198,424 | $1,503 |
| Espanola | $1,194,006 | $1,136,722 | ($57,284) |
| French River | $1,191,151 | $1,200,239 | $9,088 |
| Markstay-Warren | $581,093 | $585,527 | $4,434 |
| Nairn & Hyman | $154,028 | $152,124 | ($1,904) |
| Sables-Spanish Rivers | $673,035 | $682,474 | $9,439 |
| St Charles | $392,628 | $395,623 | $2,995 |
| Total | $8,542,152 | $8,542,152 | $0 |
The power dam apportionment is a set dollar amount based on the 2000 Current Value Assessment for all Power Dams. The apportionment amount is equivalent to the apportionment that would have been paid in 2001 if the Power Dam assessment had not been removed from taxation. This dollar amount has increased or decreased if the Power Dam Grant received by the municipality has changed.
The Board has been provided the 2021 Apportionment based on the existing formula for their review.
Staff are looking for Board direction.
