Report to: General Committee Finance & Administration                       Date of Report: March 26, 2007

 

 

SUBJECT:                          Update - Unclaimed Refundable Security Deposits

 

PREPARED BY:               Kevin Ross, extension 2126

 

 

 

RECOMMENDATION:

THAT the report titled “Update - Unclaimed Refundable Security Deposits” be received;

 

AND THAT all unclaimed security deposits placed with the Town prior to December 1, 2004 as security in respect of certain works, for which applications for refund were invited in the Toronto Star, Economist & Sun, Thornhill Liberal and the Town’s website until March 12, 2007, be transferred to the Town’s revenue as no bona fide claims were made in the notice period which exceeded 45 days;

 

AND THAT the Treasurer be authorized to transfer unclaimed security deposits, up to the amount of $505,318 representing deposits placed prior to December 1, 2004, to the Corporate Rate Stabilization Reserve;

 

AND THAT the amount of $7,371.00 (exclusive of 6% GST) incurred in placing the Public Notice be offset against the security deposits to be placed in the Town’s revenue;

 

AND THAT the Treasurer be authorized to release any of these security deposits from the Corporate Rate Stabilization Reserve in the event of a future refund claim;

 

AND THAT Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

 

PURPOSE:

The purpose of this report is to provide Council with an update of the results of the Public Notice inviting applications for the refund of security deposits, to obtain Council's approval to forfeit unclaimed security deposits prior to December 1, 2004 to the Town and, for Council to give the Treasurer the authority to transfer these funds to the Corporate Rate Stabilization Reserve.  Council’s approval is also being requested to enable the Treasurer to draw on this account in the event of future verified claims.

 

 

FINANCIAL CONSIDERATIONS:

The Public Notice placed in the Toronto Star on January 25th, 2007 was the main financial outlay in our efforts to reach parties with unclaimed security deposits, attracting a cost of $7,371.00 (exclusive of 6% GST).  Placements in the Economist & Sun and the Thornhill Liberal on January 25th and February 15th attracted no additional cost to the Town.  The Public Notice was also placed on the Town’s website.

 

There were no valid applications made over the notice period, which was in excess of 45 days, and therefore no monies were refunded from the security deposits held.  It is therefore recommended that these amounts, being unclaimed, be transferred to the Corporate Rate Stabilization Reserve. 

 

Below are the account balances for which approval is being sought for transfer to the Town’s revenue (net of the Public Notice cost), totaling $497,947.  This net revenue may possibly be reduced as some owners/developers are currently working with the Town to resolve outstanding issues, and as such, the transferred balances for some accounts may be less than the amount for which approval is being sought.  These accounts include landscaping and trees, fence construction and pool construction.  

 

 

                                 

 

 

 

 

BACKGROUND:

The approval of Council was obtained on November 28, 2006 to proceed with the placement of an advertisement, inviting applications for the refund of security deposits for works undertaken throughout the Town, but for which no refund has been requested.  A Public Notice was placed in the Toronto Star, Economist & Sun and the Thornhill Liberal with prospective applicants given until March 12, 2007 to submit a refund claim.  Whilst the notice generated exploratory phone calls from interested parties, it resulted in no bona fide claims.  

 

It is recommended that the Treasurer be authorized to transfer to the Corporate Rate Stabilization Reserve, unclaimed balances prior to December 1, 2004 as detailed in the abovementioned security deposit accounts.  This reserve is a contingency reserve which gives the Town the flexibility to honour its obligation of not precluding persons from belatedly claiming their refunds in the future.  The deposit information will be detailed and retained for this eventuality. 

 

Approval is recommended to offset the cost of placing the Public Notice in the Toronto Star - $7,371.00 (exclusive of 6% GST) – against the transferred balances.

 

It is also recommended that the Treasurer be authorized to withdraw monies from the said Corporate Rate Stabilization Reserve to satisfy security refund claims, if any, which may be requested after this transfer is effected.  

 

In order to prevent a recurrence of this accumulation in the abovementioned security deposit accounts in the future, staff is currently reviewing the application forms and other documentation used in the collection of these deposits.  This is being done to ensure that applicants, in addition to other things, are informed of; their obligation to advise and request an inspection from the Town when their works are complete and; the possibility of forfeiture if security deposits are not claimed within a specified time.   

 

BUSINESS UNITS CONSULTED AND AFFECTED:

The departments consulted as a part of this process are: Legal, Planning and Urban Design, Waste Management, Operations, Building Standards and Engineering (Operations).

 

 

RECOMMENDED

BY:                           

 

 

 

________________________      ________________________     

Barb Cribbett                                 Andy Taylor

Treasurer                                        Commissioner of Corporate Services