A MSC is a corporation whose shares are owned by a municipality, or a municipality and one or more other public-sector entities. A MSC can only provide a system, service or thing that the municipality could provide. MSC's are required to receive permission from a municipality to operate in its geographic boundaries.
Municipal Services Corporation Board
The Township of Oro-Medonte has endorsed the creation of a Municipal Services Corporation to manage Environmental Services.
The Township of Oro-Medonte has successfully appointed Board of Directors for the Municipal Services Corporation.
Currently, the Township’s Environmental Services department is responsible for;
- Treatment and distribution of municipal drinking water
- Providing service to approximately 2,500 properties
- Maintenance of the Township’s street lighting network
- Maintenance of urban storm water management infrastructure (urban storm ponds) in select urbanized neighbourhoods
- Maintenance of seven communal tile beds that provide septic services to select locations in Horseshoe Valley
- Administration of water and wastewater billing for private Freed customers in Horseshoe Valley
MSC Process Completed to Date
- May 31/June 1, 2018 - Notice of Open House Meeting website updated, social media communication initiated
- June 1, 2018 - Additional FAQs on website
- June 8,2018 - Public comment form available on website
- June 13, 2018 - Open House 5:30 pm (per Ontario Reg. 599/06), Presentation, Q & A
- July 18, 2018 - Council received a Corporate Staff Report and endorsed proceeding with the MSC
- Nov 18, 2018 - Council received a Corporate Staff Report and endorsed Board of Director Skills Criteria
- July 17, 2019- Council received a Corporate Staff Report and endorsed the Status Update
- August 18, 2021 - Municipal Services Corporation Asset Transfer Policy
- December 14, 2022 & January 11, 2023 - MSC Board of Directors Appointed
- January 31, 2023 - Asset Transfer
Municipal Services Corporation FAQs
A MSC is a corporation whose shares are owned by a municipality, or a municipality and one or more other public-sector entities. A MSC can only provide a system, service or thing that the municipality could provide. MSCs are required to receive permission from a municipality to operate in its geographic boundaries.
The Township can create a MSC under the provisions of the Municipal Act, section 203 and Ontario Regulation 599/06 Municipal Services Corporations.
The Township would retain complete and full ownership of the corporation.
In addition to being the sole shareholder of the MSC, 2 members of Council will be voting members of the MSC's Board and as such will be active participants in the decision-making process.
Ontario Regulation 599/06 requires municipalities to complete the following steps before creating an MSC:
- Develop a business case study for the proposed MSC
- Consult with the community about the plan to create the proposed MSC
- Adopt and maintain policies with respect to the transfer of assets
- All municipal water systems currently operated by the Township,
- Existing municipal communal tile bed systems operated by the Township,
- Maintenance of urban stormwater management ponds,
- Maintenance of the Township's street lighting network,
- Future infrastructure related to water and wastewater, urban stormwater and street lighting
The Township recognizes this is a concern for some residents. The future ownership of the Skyline Wastewater Treatment Plant is not impacted by the decisions related to a MSC.
The Horseshoe Craighurst Master Servicing Study currently underway will recommend a solution for wastewater provision in the settlement areas. The Township is not in a position to speculate on the outcome of this study nor the future decisions of the Ministry of the Environment and Climate Change as related to municipal ownership of the existing private plant.
The Township is growing and our assets are aging. With these changes will come corresponding demands for increased environmental services. A MSC provides:
- Professional governance and management through skills-based boards of directors whose terms extend beyond the four-year term of elected officials
- Increased debt financing flexibility by allowing the Township to separate environmental services investments from other infrastructure investments
- Provides a vehicle for shared-service arrangements with other municipalities
- Full cost recovery for water, wastewater and communal tile services, street lighting and stormwater management facilities
- Ability to continue delivering on the Environmental Services principles of safety, compliance, accountability, sustainability and continuous improvement
It is premature to speculate on future borrowing decisions, however, the need for capital expenditures to maintain current infrastructure related to environmental services will continue to increase.
Staff identified the need to explore this option approximately a year and a half ago. Given the process required by O Reg. 599/06, significant research and time was required to ensure this was a model that would work and benefit the entire municipality.
Municipal Service Corporations are still a relatively new service model, the Township wanted to complete its due diligence to ensure this was the right model for the municipality at this time. This research was thorough and took time to complete.
The Township will continue to deliver the same high quality service they have always provided. Without the MSC in place, future Councils will face difficult decisions regarding capital priorities and expenditures given the municipality's limited access to funds.
Yes, other municipalities have created Municipal Service Corporations to deliver a range of services including land development; water and wastewater; electricity etc. While the areas of service and staffing models are different the City of Guelph, City of North Bay, Town of Welland, Town of Innisfil and the Town of Midland are examples.
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