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TO: |
Mayor and Members of Council |
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FROM: |
Sheila Birrell,
Town Clerk |
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PREPARED BY: |
Frank Edwards,
Manager of Administration |
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DATE OF MEETING: |
2005-Sep-12 |
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SUBJECT: |
2006
Election Contribution Rebate Program |
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RECOMMENDATION:
THAT
Council approve a Contribution Rebate Program;
AND THAT staff be directed to present a by-law
at a subsequent meeting to establish the 2006 Election Contribution Rebate
Program;
AND THAT an Election Rebate Accrual be
established, the annual amount to be determined based upon the Rebate Program
approved by Council, with funding to be considered in the 2006 Operating Budget
process;
AND THAT $150,000 be accrued for in 2005,
funding to be provided for from the Operating Contingency account, in order to
minimize the 2006 financial impact of the Election Rebate program;
AND FURTHER THAT all candidates who participate
in Markham’s rebate program will be required to provide an auditor’s report and
financial statement to verify contribution received and the expenses.
PURPOSE:
To
provide Council with information and clarification for the 2006 Election
Contribution Rebate program.
BACKGROUND:
At the
The
purpose of the rebate program in 2003 was to assist candidates in their
fundraising efforts and to encourage greater participation of
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No. of contributors to the program |
$ Contributed to the program |
Total Rebate Paid out by |
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1,107 |
$154,700 |
$83,025 |
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Non-Markham resident |
990 |
$143,660 |
$74,250 |
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Totals |
2,097 |
$298,360 |
$157,275 |
Staff
was requested to consider the possibility of candidates’ families not being
eligible for the rebate program. The
Municipal Conflict of Interest Act defines family as spouse, same-sex partner,
child and parent. If Council decides to
eliminate the candidates and immediate family from the program, the cost would
be reduced by approximately $12,500 based on the 35 candidates that
participated in 2003.
OPTIONS/DISCUSSION
Eligibility Criteria & Method of Rebate
There
were three other GTA municipalities that provided a rebate program in
2003. Schedule “A” is a comparison of
the programs within the GTA, including costs.
In
addition to the rebate programs established by the municipalities for local
elections, there are tax credit programs for individuals who contribute to a
federal or provincial political party candidate. The formulas are as follows:
·
Federal – 75% on first $400; 50% on $401 to $750; 33.3% on $751 to
$1275
o Maximum credit is $650.00
·
Provincial – 75% of first $336; 50% on $337 to $1120; 33.3% on $1121 to
$2548
o Maximum credit is $1120.00
All
candidates who participate in
Fund
Raising Activities
Section
66(2) of the Municipal Election Act states that “an amount charged for
admission to a fund-raising function” is a contribution under the Act and,
therefore contributors would be eligible for a rebate as long as all other
eligibility criteria were met. As a contributor, you are not required to reduce
the amount contributed by, for example, the cost of the food and beverage
served, when qualifying for a rebate.
Staff has also been
requested to provide various rebate program options for consideration of
Council.
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Option A (2003 Program) Minimum contribution of $100.00 Max. rebate of $75.00 per individual from
all contributions Only contributions of money are eligible Rebates are issued to contributors after
candidates’ statements are verified Immediate family is eligible for rebates Cost(qualified
electors in the Cost(qualified
electors in the Town of |
Option B Under $25.00
– no rebate; $25.00 to and
including $300.00 – 75% of the contributed amount; Over $300.00, but not exceeding $1000.00 - $225.00 plus 50% of the difference between the amount of the contribution and $300.00 Max. rebate of $575.00 per individual from all contributions Only contributions of money are eligible Rebates are issued to contributors after
candidates’ statements are verified Immediate family is eligible for rebates Cost(qualified electors in the Cost(qualified electors in the Town of |
Option C Under
$25.00 – no rebate; $25.00 to and including $336.00 – 75% of the contributed amount; Over $336.00 to and including $1120.00 – $252.00 plus 50% of the difference between the amount of the contribution and $337.00; Over $1120.00 to and including $2188.00 - $644.00 plus 33.3% of the difference between the amount of the contribution and $1120.00 Max. rebate of $1000.00 per individual from all contributions Only contributions of money are eligible Rebates are issued to contributors after
candidates’ statements are verified Immediate family is eligible for rebates Cost(qualified electors in the Cost(qualified electors in the Town of |
Option D Minimum contribution of $100.00 Contribution of $100.00 - $75.00 rebate; Over $100.00 to $350.00 - $75.00 plus 50% of the
difference between the amount of the contribution and $100.00 Max. rebate of $200.00 per individual from all
contributions Only contributions of money are eligible Rebates are issued to contributors after
candidates’ statements are verified Immediate family is eligible for rebates Cost(qualified electors in the Cost(qualified electors in the Town of |
Option A - based on the current Town of
Option B - based on the City of
Option C - based on the Provincial Tax Rebate program.
Option D - other proposed option
Note: The costs in Options
B, C and D, on previous page, are estimates that cannot be refined at this time
as donation patterns (in the 2003 election data) will likely change under the
various options that provide for higher rebate amounts. Since Options B, C, and D provide for higher
rebates based on the amount donated, the Rebate program will likely result in
higher rebate costs to the Town.
Below is a table identifying the rebate payout
on contributions for the options above:
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Contribution $100 $200 $300 $400 $500 $600 $700 $800 $900 $1000 $2000 |
Option A $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 |
Option B $75.00 $150.00 $225.00 $275.00 $325.00 $375.00 $425.00 $475.00 $525.00 $575.00 $575.00 |
Option C $75.00 $150.00 $225.00 $284.00 $334.00 $384.00 $434.00 $484.00 $534.00 $584.00 $937.33 |
Option D $75.00 $125.00 $175.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 |
RECOMMENDATIONS:
It is being recommended that there be a
Contribution Rebate Program for the 2006 municipal election,
And that staff present a by-law to establish the 2006 Contribution Rebate Program at a subsequent meeting.
FINANCIAL CONSIDERATIONS:
Each year the Town accrues funds for Election costs to be incurred every three years. The annual accruals are accumulated in an Election accrual account which is used to fund election costs, such as staffing, training, printing, equipment rental costs, in election years.
It is recommended that an Election Rebate accrual be established in the 2006 & future Operating Budgets to fund election rebates from the Town to qualified donors. The amount of the accrual will be determined by the Rebate Option approved by Council and will be considered in the 2006 Operating Budget process.
To minimize the impact on the 2006 Operating Budget, it is recommended that $150,000 be accrued for in 2005, to be funded from the Operating Contingency Account.
BUSINESS UNITS CONSULTED AND AFFECTED:
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Sheila Birrell, Town Clerk |
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Andy Taylor, Commissioner of Corporate Services |
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Municipality |
Amount paid out |
Formula calculation |
Eligibility and process |
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Town of |
$157,275.00
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Minimum
contribution of $100.00 is eligible for a rebate Maximum
rebate of $75.00 per individual |
Only
qualified electors in the Only
contributions of money are eligible ·
Rebates are issued to contributors after candidates’ statements are
verified Candidates, their spouses or children are eligible for rebates |
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City of |
$3.2
million |
Under
$25.00 – no rebate; Between
$25.00 and $300.00 – 75% of the contributed amount; Over $300.00,
but not exceeding $1000.00 - $225.00 plus 50% of the difference between the
amount of the contribution and $300.00; and If the total
contribution to all candidates was more than $1000.00, the rebate was the
lesser of: ·
$575.00
plus 33 1/3% of the difference between the amount of the contribution and
$1000.00; and ·
$1000.00,
which is the maximum rebate payable |
Individuals, corporations and/or trade unions are
eligible(not restricted to City of Money, goods and services contributions are eligible
for rebate Contributor
must apply for rebate Candidates,
their spouses or children are eligible for rebates |
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Municipality |
Amount paid out |
Formula calculation |
Eligibility and process |
Town of
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$18,000.00 |
Under $25.00 – no rebate
$25.00 to $100.00 – 75% of
the contributed amount; Over $100.00
- $75.00 plus 50% of the difference between the contribution and $100.00 to a
maximum rebate of $150.00 |
Only qualified electors in the Town of Only contributions of money are eligible Contributor must apply for the rebate Candidates,
their spouses or children are not eligible for rebates |
Town of
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$16,800.00 |
Minimum contribution - $25.00
50% rebate to a maximum of
$200.00 to anyone individual |
Only qualified electors in the Town of Only contributions of money are eligible Contributor must apply for the rebate Candidates, their spouses and immediate family
members are not eligible |
