LLRW Funds to be Used to Reduce the Levy in 2015

print-logo April 15, 2015

PORT HOPE, ON – The Municipality of Port Hope is moving forward with an approach for the LLRW Funds in 2015.

As part of the Port Hope Area Initiative Legal Agreement, each of the Wards received a $10,000,000 ‘host fee’. Council was aware throughout the election campaign that Ward 2 residents had concerns about how LLRW funds had been used and the matter was identified as a priority to be addressed early in the term.

A Notice of Application was filed with the Ontario Superior Court of Justice by Ian Angus and Dean Ross in September 2014. In view of the outstanding litigation, the Municipality is not able to comment on the matter except to state that the litigation is not a class action but rather an application brought by these two individuals for a ruling of the Court as to the meaning of terms in a legal agreement.

Mayor Bob Sanderson stated, “This has been a major topic of discussion by this Council from the inauguration and Council has remained committed to resolving this issue in the most appropriate way and in the interest of all Ward 2 citizens with a fair, transparent and equitable solution.”

The Municipality is not in a position to wait for the outstanding litigation to be resolved as Council must meet its obligation to manage the affairs of the Municipality in accordance with relevant legislation, including the finalization of the annual budget and as such, Council will move forward with an initiative for 2015.

The market value of the Ward 2 fund as of Dec. 31 2014 is approximately $10,869,000, including earned interest (after expenses) of approximately $310,000. For 2015 the earned interest of approximately $310,000 generated in 2014 will be applied as follows:

  • 80% of the earned interest will be applied directly to reduce the 2015 Ward 2 Municipal levy, and
  • 20% will remain in the Ward 2 LLRW fund to generate incremental interest to offset the increasing cost of living. 

 
The Ward 1 LLRW fund would be treated in the same manner and Council is considering the potential to supplement the LLRW funds with additional principal.

As Council intends to establish the 2015 Municipal Budget and Levy By-Laws at the next Council meeting on April 21st, the 2015 use of LLRW funds as outlined is anticipated to be approved at that time.

Any details relating to the ongoing or future use of the fund cannot be addressed unless and until the litigation is withdrawn, settled or resolved by the Courts.

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For more information contact

Bob Sanderson, Mayor                                              Sandra Weeks, Communications Coordinator
905.885.4544 or mayor@porthope.ca                        905.885.4544 Ext. 2233 or communications@porthope.ca