11/26/2015
2015 Fall Economic Statement Highlights Today Finance Minister Charles Sousa delivered the 2015 Fall Economic Statement. Highlights of the statement for municipalities include the following: Power Dam Special Payment Program Payments to municipalities which host power dam facilities will be maintained for 2016. This removes an immediate financial risk for nearly a quarter of municipalities for the next year. The Statement says work to examine the phase-down of this program and future taxation options for municipalities will continue. This is the government’s second deferral of a plan to claw back these payments. AMO’s preferred option is for the government to fully abandon plans for any claw backs. Business Property Tax Capping Program Beginning in 2016, municipalities will be permitted to opt out of the capping program if they meet provincial eligibility criteria. This will allow municipalities to adjust the capping program to best suit local circumstance. AMO wrote to the Minister of Finance in 2014 seeking these changes. AMO is pleased that this administrative burden will be lessened for many municipalities in the future. Special Purpose Business Property Assessment Review Bill 144 and the Fall Economic Statement will amend the Request for Reconsideration process timeline to support the early resolution of assessment issues. It is AMO’s view that the above and other changes will support the stability of the property assessment system. Overall Fiscal Outlook The 2015-16 deficit is now projected at $7.5 billion, an improvement of $1 billion over the 2015 Budget projection. This revision includes the government’s recent proceeds from the sale of 15% of Hydro One which will support infrastructure investment. The 2016-17 deficit is projected at $4.5 billion. The government remains committed to balancing the budget by 2017-18. A full copy of the Statement is available at Building Ontario Up: Progress for Prosperity. Waste Free Ontario Act This afternoon the Minister of the Environment and Climate Change, the Honourable Glen Murray, introduced the long-awaited new omnibus waste management legislation titled "Waste Free Ontario Act". The draft legislation is comprised of two Acts: