Council Highlights - January 11, 2021
View the full agenda package for Council
Capital and Operating budgets approved
The draft 2021 Capital Budget was first presented to Council on November 9, 2020, and continued on November 30, 2020. Council made some recommendations to the capital budgets which were incorporated into the report brought forth January 11, 2021. Also, the ICIP Resilience Stream grant was announced that the Town of Pelham would only receive $112,331. Therefore, the ICIP Resilience Stream grants that were included in the proposed budget for two projects in the amount of $775,287, but not approved, have been removed. These two projects were (1) RD 13-21 Pelham St Road Reconstruction project with grant funding of $430,000 and (2) LIB 02-21 Fonthill Library basement renovations with grant funding of $345,287.
The draft 2021 Operating Budget was presented to Council on November 30, 2020. The recommended tax levy increase was 4.59% after a 2.82% assessment growth. This number included COVID-19 related expenditures and revenue losses. Council deferred the approval of the 2021 Operating budget waiting for the Safe Restart Phase 2 COVID-19 grant announcement. This announcement was made on December 16, 2020. The Town has received $1,298,000 for the Safe Restart Phase 2 funding. This funding specifically allocated $86,000 of this grant to 2021 fiscal year to offset COVID-19 budget pressures. It also states that 2020 funds can be used to address 2021 pandemic-related operating needs. Of the total Safe Restart Phase 2 funding, approximately $64,000 pertains to the Library for its COVID-19 operating pressures.
Town to establish reserve for human resources capacity building
Like other municipal employers, the Town of Pelham experiences unbudgeted human resources related expenses such as pay equity compliance, backfilling staff on extended sick leaves, termination expenses, work place investigations, union negotiations, Council-approved changes or additions to staff complements subsequent to budget approval, training for new staff when vacancies are filled, or health and wellness initiatives. Currently these costs commonly result in a negative budget variance in the year.
In the past, unanticipated and unforeseeable human resources related expenditures put pressure on the operating budget in-year, and resulted in unfavourable budget variances. At the time of budget preparations, budgets are developed with best estimates, but there are many unpredictable changes in staffing that occur during the year; therefore having funds set aside in a reserve would help to mitigate these variances.
It would be highly beneficial to establish a Reserve for Human Resources Capacity Building to be used to accumulate corporate savings from staffing vacancies which can then be used to support employee-based initiatives. This would mitigate the risk of having unfunded human resources expenditures throughout the year, for expenditures which are unforeseeable.
Staff recommend that Council establish a Reserve for Human Resources Capacity Building, as outlined below.
Purpose of Fund: The Human Resources Capacity Building Reserve will be used to accumulate corporate savings from vacancies to support employee-based and employment-related initiatives.
Funding Source: Vacancy savings for all regular positions, including all Management positions and all regular positions governed by CUPE where such savings are not otherwise designated by Council to offset unanticipated expenditures or revenue shortfalls.
Vacancy savings related to the Pelham Volunteer Firefighters positions will be directed to the Fire Equipment Reserve.
Positions that are part Building department, Water and Wastewater are exempt from this policy, as these savings are already allocated to the respective Reserve or Reserve Fund.
Drawdowns: The proposed Reserve will fund future initiatives such as: pay equity compliance, backfilling staff on unanticipated extended sick leaves, termination expenses that exceed vacancy savings from the position, reorganization/restructuring implementation, union negotiations, employee accommodations, the Town portion of grant funded positions for grants awarded after budget approval, employee wellness initiatives, Council approved changes or additions to staff complements subsequent to budget approval, workplace investigations, student co-op placements for special projects, unplanned or irregular training opportunities or disciplinary costs, training for new staff when vacancies are filled, staff costs during training overlap for unanticipated leaves, staff recognition, work place investigations, leadership development, space planning and succession planning.
Any unbudgeted expenses requested to be funded from this Reserve are subject to the following approval process:
The CAO can approve unbudgeted expenses from this Reserve pursuant to By-Law #4307(2021), a by-law to define the duties of the office of the Chief Administrative Officer, and any successor by-laws, provide there is sufficient funds in the Reserve in consultation with the Treasurer. A threshold of $75,000 per year can be approved by the CAO, and anything above that would require Council approval. Also, any expenditures from this reserve that impacts the tax levy in the following year by $75,000 or more would need Council’s approval.
Council Approved Target Level: The Reserve balance will be kept at a minimum of $50,000.
Council says 'Yes' to preserving Steve Bauer and Gerry Berkhout Trail as they currently exist
A motion to preserve two high-profile trails in town, brought forward by Council John Wink, passed Monday night. The motion passed reads:
WHEREAS the Provincial Government launched the Ontario Trails Strategy that is a long term plan that establishes strategic direction for planning, managing, promoting and using trails in Ontario;
AND WHEREAS trails play an important role in building a healthier, more prosperous, Ontario;
AND WHEREAS section 1.5.1 of the Provincial Statement 2020 states: "Healthy, active communities should be promoted by: a) planning public streets, spaces and facilities to be safe, meet the needs of pedestrians, foster social interaction and facilitate active transportation and community connectivity; b) planning and providing for a full range and equitable distribution of publicly accessible built and natural settings for recreation, including facilities, parklands, public spaces, open space areas, trails and linkages, and, where practical, water-based resources; c) providing opportunities for public access to shorelines; and d) recognizing provincial parks, conservation reserves, and other protected areas, and minimizing negative impacts on these areas";
AND WHEREAS good trails play a vital role in our well-being by supporting an active lifestyle that improves health, trails attract tourists to our community, trails build strong communities that strengthen our social fabric, and trails conserve and appreciate the environment;
AND WHEREAS the Steve Bauer Trail has been in existence for over 20 years and is public property owned by the Town of Pelham;
AND WHEREAS the Gerry Berkhout Trail has been in existence for over 2 years and is public property owned by the Town of Pelham;
AND WHEREAS these trails provide safe areas to increase trail use by all community residents including children, youth, seniors and persons with a disability;
AND WHEREAS the ongoing COVID-19 pandemic has increased the demand for safe, accessible trails to the point that the trails are one of the most utilized public spaces in Pelham;
AND WHEREAS our Town's ecosystems and natural features need to be preserved;
NOW THEREFORE BE IT RESOLVED that no new road crossings over the Steve Bauer Trail or the Gerry Berkhout Trail shall be permitted by the Town;
AND FURTHER BE IT RESOLVED THAT the Town shall not dedicate any portion of the Steve Bauer Trail or the Gerry Berkhout Trail as a public highway;
AND FURTHER BE IT RESOLVED THAT the Pelham Town Council endorses the preservation of the Steve Bauer Trail and the Gerry Berkhout Trail as they currently exist.