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HomeMy Public PortalAboutC A 2014-11-27 Page 1 of 1 MUNICIPALITY OF THE DISTRICT OF CHESTER CHESTER MUNICIPAL COUNCIL Thursday, November 27, 2014 Following Public Hearing being held at 8:45 a.m. AGENDA 1. MEETING CALLED TO ORDER. 2. MINUTES OF PREVIOUS MEETING: 2.1 Council – Thursday, November 13, 2014 3. MATTERS ARISING: 3.1 Fiscal Review – Discussion/Direction regarding feedback to UNSM: a. Request for Decision Report to Council from CAO dated November 19, 2014. b. Draft letter of response to UNSM President. c. Consultative Summary Report – The Provincial-Municipal Fiscal Review. d. Background Info – Draft Financial Impact to Municipalities e. Background Info – Provincial/Municipal Fiscal Review (workshop displays) 4. COMMITTEE REPORTS: 4.1 Committee of the Whole – November 20, 2014 4.2 Any other Committee Reports. 5. CORRESPONDENCE: 5.1 November 18, 2014 Email from Donna Cross sending two votes for not moving the food bank from Chester. 5.2 November 10 email from Cynthia Myers adding her name to those who feel the Municipality’s move is a bad choice. 5.3 Copy of email from Cathy Ross with petition information signed by Jamie Moye and P. G. Booher. 5.4 Information from Chris Peters, Minas Basin, regarding Kaizer Meadow Wind Tower: a. Kaizer Meadow Wind Project – Report on Turbine Performance – November 21, 2014. b. Availability Calculation from Enercon (November 11, 2014) c. Enercon Operating Report – January 1, 2014 to October 31, 2014 d. Enercon Operating Report – April 1, 2014 to October 31, 2014 6. NEW BUSINESS: 6.1 Memo dated November 20, 2014 from Senior Economic Development Officer regarding RFP Award T-2014-015 Preparation of Industrial/Business Park Study. 7. ADJOURNMENT. APPOINTMENTS ARRANGED 8:45 a.m. PUBLIC HEARING– Telecommunications Tower in Chester Village 9:15 a.m. Carol Nauss – Update on Heritage Society activities 9:40 a.m. Chris Peters, Minas Basin (refer to item 5.4) In Camera following regular session under Section 22 of the MGA if required Council (Continued) 519 Thursday, November 13, 2014 _________________________________________________________________________________________________________________ TAX EXEMPTION FOR CHARITABLE, NON-PROFIT ORGANIZATIONS, MUNICIPAL WATER UTILITIES AND LICENSED DAY CARES BY-LAW # 74 1. The By-Law shall be known as the Tax Exemption By-Law. 2. The real property of the organizations or institutions named in Schedules "A", "B", "C", AD@, & AE@ to this by-law that would otherwise be classified as commercial property shall be exempt or taxed in accordance with the particular schedule as well as the business occupancy of licensed day cares named in Schedule AE@. 3. The partial or total exemption provided in Section 2 shall apply only to that portion of the real property specified in the schedule. 4. When a property, or part thereof, listed in a schedule ceases to be occupied by the association or for the purposes set out in the schedule then the partial or total exemption from taxation shall cease and the owner of the real property shall immediately be liable for the real property tax on such real property or part thereof for the portion of the year unexpired. 5. This amended By-Law shall have the effect commencing in the Municipal taxation year 2014/15. --------------- SCHEDULE "A" Properties of a named registered Canadian Charitable organization that is used directly and solely for a charitable purpose to be taxed under Section 71 (1) (a) of the Municipal Government Act in the manner set out in the last two columns of this Schedule. OWNER PROPERTY CHARITABLE NUMBER EXTENT OF APPLICATION EXTENT OF TAX EXEMPTION Chester Brass Band Chester Brass Band Building 6381677 118851427RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Chester Municipal Heritage Society Old CNR Station Chester, NS Account #643793 118851468RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Land, Parcel L Prince, Regent, Central Streets, Chester, NS Account #8179042 118851468RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Land, Museum 133 Central Street Chester, NS Account #2950421 118851468RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Land, Building 82 Union Street Chester, NS Account #00948845 118851468RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Land, Building Council (Continued) 520 Thursday, November 13, 2014 _________________________________________________________________________________________________________________ Chester Theatre Society Chester, NS Account #4752988 127727444RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Church Memorial Park Land & Complex Eleanor Pew Morris Memorial Rink, Chester, NS Account #1389424 118859305RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Church Memorial Park Sports Field Account #758205 118859305RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Land Chester, Corner of Union and Central Streets Account #8189250 118859305RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. East Chester Recreation Association Land & Buildings East Chester, NS Account #1360698 118890441RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Forties Community Centre Land & Hall Forties, NS Account #1547763 137164265RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Land Forties, NS Account #1273795 137164265RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Shoreham Village Senior Citizens Apartments Association Blood Clinic Account #4254694 107978702RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged South Shore Community Services Association Land & School Bonny Lea Farm Windsor Road, NS Land & Residence Buildings Bonny Lea Farm Windsor Road, NS Account #4373316 107997231RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. United Church of Canada Land & Buildings Youth Camp Forties, NS Account #4718178 119293405RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Council (Continued) 521 Thursday, November 13, 2014 _________________________________________________________________________________________________________________ Western Shore & Area Improvement Association (operating under the name of DMD Amusements) Land & Building Western Shore, NS Account #1240757 899474456RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Wild Rose Park Western Shore 8215596 899474456RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Old Trunk No. 3 Rd. Land, Gold River Account #9484817 899474456RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Chester Art Centre 60 Queen Street, Chester Account #03477312 832872962RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. 62 Queen Street, Chester Account #03477304 832872962RR0001 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. SCHEDULE "B" Properties of incorporated non-profit organization which are either community-oriented, charitable, fraternal, educational, recreational, religious, cultural, or sporting organizations and which in the opinion of Council provide an active service, through programs or maintenance of the property, to the Municipality that might otherwise be a responsibility of Council which are to be taxed under Section 71 (1) (b) of the Municipal Government Act to the extent set out in the last two columns of this Schedule. OWNER PROPERTY EXTENT OF APPLICATION EXTENT OF EXEMPTION Aspotogan Heritage Trust Society Land Lot 99-1-B Barn Highway 329, Hubbards Account #9184023 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Land Lot 99-1-A Highway 329, Hubbards Account #9317465 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Basin Recreation Park Comm. Land, Lower Grant Road Account #5576768 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Canaan Community Club (Canaan District Hall Association) Land & Building Canaan, NS Account #637173 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. East River Village Hall Land & Building East Chester, NS Account #1361007 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Hubbards Area Lions Club Land & Building Fox Point, NS Account #2090538 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Municipality of Chester/ 103 No 329 Hwy Lot A Hubbards The Whole Council (Continued) 522 Thursday, November 13, 2014 _________________________________________________________________________________________________________________ Aspotogan Heritage Trust Account #1076205 100% of commercial property tax. Area rates for other municipal services will be charged. Old No 3 Hwy Lot G Hubbards Account #9181687 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Old No 3 Hwy Lot F Hubbards Account #9181695 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Old No 3 Hwy Lot E Hubbards Account #9181709 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Old No 3 Hwy Lot C Hubbards Account #9181717 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Aspotogan Heritage Trust Land Lot 05-1 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Ocean Swells Community Association Land, Hall 2726 Highway 329 Northwest Cove Account #889377 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. New Ross District Museum Society 4670 No. 12 Hwy Lot B-A-D New Ross Account #05266033 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. District 1 Fire Commissioners Land, Fire Hall Road Account #02614367 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Helping Hands to Enrich Learning & Lifestyles Programming Society Land & Building 419 Highway 329, Fox Point Account #3392104 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. Hubbards Yacht Club Land and Building 215 Highway 329 10236975 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. SCHEDULE "C" The Council may, by By-Law, to the extent and under the conditions set out in the by-law, provide that the tax payable with respect to all or part of the taxable commercial property of any non-profit community, charitable, fraternal, educational, recreational, religious, cultural or sporting organization named in the by-law be reduced to the tax that would otherwise be payable if the property were a residential property, inclusive of area rates as set out in 71(2) of the Municipal Government Act as is determined by Council from year to year to the extent set out in column three. OWNER PROPERTY EXTENT OF APPLICATION EXTENT OF EXEMPTION Captain Kidd Rod & Gun Club Land & Building East Chester, NS Account #663255 The Whole The Residential Rate is applied rather than the Commercial Rate. Area rates for other municipal services will be charged. Council (Continued) 523 Thursday, November 13, 2014 _________________________________________________________________________________________________________________ Chester Yacht Club Land & Building South Street, Chester, NS Account #730033 The Whole The Residential Rate is applied rather than the Commercial Rate. Area rates for other municipal services will be charged. Clarke Lodge No. 61 A.F. & A.M. Land & Building Queen Street, Chester, NS Account #805645 The Whole The Residential Rate is applied rather than the Commercial Rate. Area rates for other municipal services will be charged. Norwood Lodge No. 135 A.F. & A.M. Land & Building New Ross, NS Account #3542777 The Whole The Residential Rate is applied rather than the Commercial Rate. Area rates for other municipal services will be charged. The Thunderbird Recreation Association Land East River, NS Account #5053692 The Whole The Residential Rate is applied rather than the Commercial Rate. Area rates for other municipal services will be charged. Land & Hall East River Account #359289 The Whole The Residential Rate is applied rather than the Commercial Rate. Area rates for other municipal services will be charged. Chester Golf Club Land & Buildings 120, 206, 212 Golf Course Road Chester Account #00729779 The Whole The Residential Rate is applied rather than the Commercial Rate. Area rates for other municipal services will be charged. SCHEDULE "D" Buildings, pump stations, deep well pumps, main transmission lines, distribution lines, meters and associated plant and equipment of a municipal water utility under Section 71(1) (e) of the Municipal Government Act to the extent set out in the last two columns of this Schedule. OWNER PROPERTY EXTENT OF APPLICATION EXTENT OF APPLICATION Municipality of the District of Chester Mill Cove Water Utility Account Number 9490450 The Whole 100% of commercial property tax. Area rates for other municipal services will be charged. SCHEDULE AE@ The Council may, by By-Law, exempt any day care licensed under the Day Care Act from taxes payable in respect of commercial and business occupancy assessment. Properties to be taxed under Section 71A and 71B of the Municipal Government Act in the manner set out in the last two columns of this Schedule. OWNER PROPERTY EXTENT OF APPLICATION EXTENT OF EXEMPTION Brenda Cook-Forest Ocean View Children=s Centre 1540564 Land, Dwellings, Day Care Buildings Commercial The Residential Rate is applied rather than the Commercial Rate. Area rates for other municipal services will be charged. MUNICIPALITY OF THE DISTRICT OF CHESTER REQUEST FOR DECISION REPORT TO Warden Webber Municipal Council Members SUBMITTED BY Tammy Wilson, MURP, MCIP, Chief Administrative Officer DATE November 19, 2014 SUBJECT PROVINCIAL – MUNICIPAL FISCAL REVIEW- FEEDBACK ORIGIN Committee of the Whole – October 23, 2014 ______________________________________________________________________________________________________________________ CURRENT SITUATION: The Municipal/Provincial Fiscal Review was a joint committee established by the Province and UNSM to investigate how provincial support to municipalities could be best allocated. The Committee through their review determined that there were economic and demographic challenges facing municipalities. To confront these challenges the Committee made forty-one recommendations to better allocate provincial / municipal resources and increase collaboration. Municipalities have been asked to provide feedback to the UNSM on these recommendations by December 15, 2014 RECOMMENDATION: That Municipal Council forward to the UNSM their response to the Provincial / Municipal Fiscal Review, as attached to this report as Appendix A BACKGROUND: The Provincial- Municipal Fiscal Review started, in 2010, as an Internal Provincial review of equalization and Towns Foundation grant in 2010. It was quickly determined that this scope was too narrow and a more holistic and comprehensive review was required, which involved looking at all programs and services provided to municipalities and how provincial support could be best allocated. A Steering Committee consisting of elected representatives from NS Municipalities and Deputy Ministers was created to oversee this review. A working group was also created consisting of staff from various municipalities, staff from UNSM and staff from the Department of Municipal Affairs. The Review Committee released a Current State of Municipal Governments in Nova Scotia Report in the fall of 2013. This report was the foundation upon which the forty one recommendations were created. The recommendations address: • Municipal Structure Options • Road Options • Grant Options • Revenue Options • Expenditure Options • Non-Financial Supports UNSM has asked for Municipal Feedback and provided questions to aid municipalities in providing this feedback. The due date for submissions is December 15, 2014 Municipal Councillors have reviewed the report in recommendations in detail at the October 23, 2014 Committee of the Whole Meeting. A draft response to the UNSM feedback question was provided by Councillors at that time. Subsequent to this, Municipal Councillors attended an information session on October 31, 2014. DISCUSSION: Based upon the discussions held at the October 23, 2014 Committee of the Whole Meeting, the information session and more recent UNSM discussions at Rural Caucus, the following a draft response to the UNSM feedback questions: UNSM Feedback Questions (see Appendix B for Executive Summary Report) Structure 1. Do you think the proposed process is reasonable? Why or why not? a) Recognizing the review does not necessarily lead to amalgamation, do you suggest the use of the FCI as a method to trigger a constructive review? If not , please suggest another alternative Answer: The proposed process regarding improvements to government structures is reasonable; however, municipalities should be afforded the ability to explain or provide information regarding the FCI’s to justify a red flag. In cases where this can be done, the red- flagged FCI should not trigger a review. FCI’s are not a one size fits all, and there may be suitable justification for a red-flagged indicator. 2. Is there anything you would change with respects to the review process Answer- No, except to ensure that justified red flagged FCI’s do not trigger an automatic review. 3. Do you support the recommendations regarding Village Commissions? Why or Why not? a) What issues do you see arising if these recommendations are implemented? How would you like to see these issues addressed? Answer: The recommendations regarding Village Commissions are supported, with the exception that there should be a threshold under which a Village cannot make application for town status (i.e. Population / assessment). The services provided by Villages can often be provided by the surrounding rural municipality within either the general rate or by an area rate, increasing efficiencies and decreasing duplication in governance and administration costs. The One Nova Scotia Report (Recommendation 18) emphasized the principle of reducing duplication and rationalizing government structures. The recommendation respecting Villages supports this principle, however without some parameters around when a Village can make application for town status, the concerns of the financial viability of municipalities could be exacerbated, particularly if there is no regard for the impact on the rural municipality from which a Village is making application to leave. If the recommendations respecting Villages do not move forward it is recommended that the “concurrent jurisdiction” matter between Villages and Municipalities be addressed so as to bring clarity to who has the overall authority for a particular function/service and reduce the potential for duplication. For example, if municipal unit already provides a service, such as fire protection or garbage collection, a Village should not be able to provide the service to the same area. This creates duplication, affects economies of scale and thus drives up costs. Roads 1. Do you think the proposed recommendations create a more level playing field? If not, please provide alternatives? Answer- While there are negative financial impacts to the District of Chester ($42,001 to $61,251 in increased costs), Council agrees with the overall philosophy. This recommendation does level the playing field between Rural Municipalities and Towns with respects to costs. However, it is still important to note that service levels between a town and a rural municipality are different, which results in some of the cost differential. Grants 1. The PCAP recommendation provides additional money for much needed capital projects. Do you think an application based process is appropriate? If not, please explain what you would recommend. Answer: There is difficultly in fully answering this question, as the parameters around which the PCAP funding will be made available is not known. The recommendation does not note if it is 50 cent dollars, what the maximum grant amount will be, nor what the eligible projects will be. Thus it is difficult to determine the implications of this recommendation on the District of Chester or other municipalities That being said, and without the benefit of the above noted information, the application based approach appears to be appropriate. An application based process implies that there will be criteria upon which to evaluate applications, which will provide more certainty to the program than presently exists. That being said, the District of Chester feels that the PCAP funding should be available for municipal priorities, as determined by municipalities, and thus criteria should be broad enough to ensure the same. Council does have concern that the funds being used solely for dissolution, which will deplete the fund quickly. Lastly, funding under PCAP should be available at 50 cent dollars. 2. Using a provincial lens, do you believe these recommendations enhance fairness? Why or why not? Answer: There is concern that the province will be unable to fund an additional $21.1 Million. It is important that all of the recommendations go as a package. As a package it makes sense and will make municipal government in Nova Scotia sustainable. The Province may see the additional funding requirement as unfair and unattainable: the result being the desire to move forward with some, and not all of the recommendations. This approach would be unacceptable to the District of Chester. If this occurs, it is the Districts position that consultation on the recommendations accepted be completed again. Council’s view on a recommendation in isolation of the entire package would be very different. 3. Using a municipal lens, specific to your municipality, what challenges or opportunities do you see arising from the recommendations? Answer: Same as for question #2. In addition, with the vagueness around what an expanded PCAP program looks like, it is difficult to assess whether municipalities will benefit from the program. There is concern that the criteria will be used to push forward provincial priorities which might not align with municipal priorities. If the PCAP program is broad in scope of eligible projects, opened to larger capital projects than has traditionally been the case, and funds projects at 50 cent dollars, municipalities should see a benefit. 4. The current NSPI grant-in-lieu to municipalities is through the operating grants formula, however, a shift to a rate assessment formula places contributions from NSPI in line with other property tax payers. Do you support this principle? Please explain why or why not. Answer: Although the effect of this varies for Municipalities, it makes sense to tie the grant to a rate assessment formula. As noted in the Consultation Document, this will enable municipalities with NSPI asset to receive a grant that is elastic and predictable and reflective of the value of the asset. Revenue 1. What types of flexibility, or changes would you like to see with respect to Recommendations 27 and 28? Answer: Municipalities should be given the ability to consider alternatives to property taxes for various capital and service costs, such a Development / Capital Charges beyond those provided for in the MGA. An example is the recent expansion to the HRM Charter with respects to being able to impose charges for libraries, fire dept.’s etc. These are enabling, thus giving municipalities the option. Consideration should be given to municipalities being able to provide incentives for economic development purposes, such as tax breaks, reduced tax rates, sale of land at less than market value and other incentives. This is will add to the value proposition municipalities and the province offer investors. Presently, municipalities are limited in their ability to do this, outside of infrastructure investments. Lastly, consideration should be given to enabling Municipalities to partner with the private sector in ways that beyond the normal leasing/contracting for service arrangements. Opportunities exists for municipalities to invest in private infrastructure and private economic development initiatives which are for the benefit of an entire region. 2. Until the province is in a fiscally sound position, municipalities will need to continue contributing to mandatory contributions. Do you support Recommendation #29? If not, explain why. The general consensus was that Council supported separating the provincial property tax from the Municipal property tax and that the preferred option would be to have separate bills. This will make the taxing more apparent for residents. Unfortunately, this will also mean an increase for some because the formula would now be assessment based rather than uniform assessment based. The provincial rate will then be the same across the province, which is a positive. The District of Chester will see an increase in mandatory contributions by $223,149. The result will be a negative impact to the Residential Tax Effort / Tax Burden. Residential Tax Effort / Tax Burden is a FCI, and one in which the District of Chester has a red flag. This is primarily due to the high assessment values. The District of Chester will make efforts to reduce its costs, however, these efforts can be comprised by the mandatory contribution rate, as the Municipality has no control over the mandatory contribution rate. This rate can go up annual and counteract the efforts of the District to reduce the residential tax burden. As such, it is the Districts recommendation that the formula for calculating the residential tax burden be revised to remove the expenses and corresponding tax revenue collected for mandatory contributions. This will enable an accurate measure of the Districts efforts to have sustainable municipal service costs for its residents. Collaboration 1. Recommendation 30 calls for a better process for municipalities to work with the province in establishing regulations, how do you envision this process? Answer: Being engaged earlier in discussions regarding regulation development would be beneficial; if the province is considering changing regulations then discussions with Municipalities prior to changes may be beneficial – Municipalities may have information from a different point of view that is relevant or helpful in drafting proposed changes. Providing “one year notice letters” with no detail whatsoever is not helpful to Municipalities. 2. Are there areas in your municipality where you could benefit from Municipal Affairs assistance? If so, please explain. Answer. The assistance regarding asset management is a good program. Rather than have advisors for specific geographical areas, it may be more helpful to have advisors who have expertise in certain topics than can be drawn upon. Overall Questions on Recommendations 1. What recommendations do you think would be most beneficial to your municipality in the long-term? 2. What recommendations do you think would be the most challenging for your municipality? Answer: It is the position of the District of Chester that the recommendations are provided as a package, and not individually. As a package the District supports the recommendations. Council is hesitant to comment on what recommendations it supports in isolation of the other. If the recommendations are separated and considered on their own, meaning some are accepted and others not, the position of this Council and the opinions provided in this response may change. It is the Districts position that if such were to occur, UNSM and the province will need to undertake another round of consultation. POLICY IMPLICATIONS Not applicable BUDGETARY The following is a summary of the financial implications of the recommendations to MODC: • Roads: Net increase in cost between $42,001 to $61,251 • NSPI Grant: Increase in grant revenue of $18,417 • Elimination of HST Offset: Decrease in revenue of $64,530 • Mandatory Contributions: Increase in Mandatory Expenses of $223,149 • Net Financial impact to MODC- ($330,513). • $300,513 = approximately 2.5 cents on the Residential / Resource Rate If Villages are Phased out, MODC will incur increased costs to provide services. This would be offset by revenue that is presently collected by the Village Rate. Future analysis is required to determine if the revenue collected is presently in excess of what would be required. The recommendation is to phase out Villages over 5 years, thus enabling time for the transition and an analysis of the impact. Uncertain as to the financial impact of an expanded PCAP program, due to lack of details surrounding the program. ENVIRONMENTAL- Not applicable STRATEGIC PLAN- Not applicable WORK PROGRAM IMPLICATIONS- Not applicable ATTACHMENTS: Draft Letter- Appendix A; Fiscal Review Summary Document OPTIONS: 1. Approve the submission as drafted 2. Make revisions to the submission prior to submission Prepared BY Tammy Wilson Date November 20, 2014 Reviewed BY Date Authorized BY Date 27 November 2014 Mr. Keith Hunter, UNSM President Union of Nova Scotia Municipalities Suite 1106, 1809 Barrington Street HALIFAX NS B3J 3K8 Dear Mr. Hunter, RE: MUNICIPAL FISCAL REVIEW The Municipality of the District of Chester has undertaken a thorough review of the Provincial- Municipal Fiscal Review, through a review of the written materials and participation at the information sessions hosted by DMA and UNSM. Municipal Council would like to congratulate the Fiscal Review Committee on the work completed and recommendations put forward. The work encompassed a significant period of time and required dedication by the members. The following is feedback provided by Council of the Municipality of the District of Chester respecting the fiscal review. Structure 1. Do you think the proposed process is reasonable? Why or why not? a) Recognizing the review does not necessarily lead to amalgamation, do you suggest the use of the FCI as a method to trigger a constructive review? If not, please suggest another alternative Answer: The proposed process regarding improvements to government structures is reasonable; however, Municipalities should be afforded the ability to explain or provide information regarding the FCI’s to justify a red flag. In cases where this can be done, the red- flagged FCI should not trigger a review. FCI’s are not a one size fits all, and there may be suitable justification for a red-flagged indicator. 2. Is there anything you would change with respects to the review process? Answer: No, except to ensure that justified red flagged FCI’s do not trigger an automatic review. 3. Do you support the recommendations regarding Village Commissions? Why or Why not? a) What issues do you see arising if these recommendations are implemented? How would you like to see these issues addressed? Answer: The recommendations regarding Village Commissions are supported, with the exception that there should be a threshold under which a Village cannot make application for town status (i.e. population / assessment). The services provided by Villages can often be provided by the surrounding rural Municipality within either the general rate or by an area rate, increasing efficiencies and decreasing duplication in governance and administration costs. The One Nova Scotia Report (Recommendation 18) emphasized the principle of reducing duplication and rationalizing government structures. The recommendation respecting Villages supports this principle, however without some parameters around when a Village can make application for town status, the concerns of the financial viability of Municipalities could be exacerbated, particularly if there is no regard for the impact on the rural Municipality from which a Village is making application to leave. If the recommendations respecting Villages do not move forward it is recommended that the “concurrent jurisdiction” matter between Villages and Municipalities be addressed so as to bring clarity to who has the overall authority for a particular function/service and reduce the potential for duplication. For example, if a Municipal unit already provides a service, such as fire protection or garbage collection, a Village should not be able to provide the service to the same area. This creates duplication, affects economies of scale and thus drives up costs. Roads 1. Do you think the proposed recommendations create a more level playing field? If not, please provide alternatives? Answer: While there are negative financial impacts to the District of Chester ($42,001 to $61,251 in increased costs), Council agrees with the overall philosophy. This recommendation does level the playing field between Rural Municipalities and Towns with respects to costs. However, it is still important to note that service levels between a town and a rural Municipality are different, which results in some of the cost differential. Grants 1. The PCAP recommendation provides additional money for much needed capital projects. Do you think an application based process is appropriate? If not, please explain what you would recommend. Answer: There is difficultly in fully answering this question, as the parameters around which the PCAP funding will be made available is not known. The recommendation does not note if it is 50 cent dollars, what the maximum grant amount will be, nor what the eligible projects will be. Thus it is difficult to determine the implications of this recommendation on the District of Chester or other Municipalities That being said, and without the benefit of the above noted information, the application based approach appears to be appropriate. An application based process implies that there will be criteria upon which to evaluate applications, which will provide more certainty to the program than presently exists. That being said, the District of Chester feels that the PCAP funding should be available for Municipal priorities, as determined by Municipalities, and thus criteria should be broad enough to ensure the same. Council does have concern about the funds being used solely for dissolution, which will deplete the fund quickly. Lastly, funding under PCAP should be available at 50 cent dollars. 2. Using a provincial lens, do you believe these recommendations enhance fairness? Why or why not? Answer: There is concern that the province will be unable to fund an additional $21.1 Million. It is important that all of the recommendations go as a package. As a package it makes sense and will make Municipal government in Nova Scotia sustainable. The Province may see the additional funding requirement as unfair and unattainable: the result being the desire to move forward with some, and not all of the recommendations. This approach would be unacceptable to the District of Chester. If this occurs, it is the Districts position that consultation on the recommendations accepted be completed again. Council’s view on a recommendation in isolation of the entire package would be very different. 3. Using a Municipal lens, specific to your Municipality, what challenges or opportunities do you see arising from the recommendations? Answer: Same as for question #2. In addition, with the vagueness around what an expanded PCAP program looks like, it is difficult to assess whether Municipalities will benefit from the program. There is concern that the criteria will be used to push forward provincial priorities which might not align with Municipal priorities. If the PCAP program is broad in scope of eligible projects, opened to larger capital projects than has traditionally been the case, and funds projects at 50 cent dollars, Municipalities should see a benefit. 4. The current NSPI grant-in-lieu to Municipalities is through the operating grants formula, however, a shift to a rate assessment formula places contributions from NSPI in line with other property tax payers. Do you support this principle? Please explain why or why not. Answer: Although the effect of this varies for Municipalities, it makes sense to tie the grant to a rate assessment formula. As noted in the Consultation Document, this will enable Municipalities with NSPI assets to receive a grant that is elastic and predictable and reflective of the value of the asset. Revenue 1. What types of flexibility, or changes would you like to see with respect to Recommendations 27 and 28? Answer: Municipalities should be given the ability to consider alternatives to property taxes for various capital and service costs, such Development / Capital Charges beyond those provided for in the MGA. An example is the recent expansion to the HRM Charter with respects to being able to impose charges for libraries, fire departments, etc. These are enabling, thus giving Municipalities the option. Consideration should be given to Municipalities being able to provide incentives for economic development purposes, such as tax breaks, reduced tax rates, sale of land at less than market value and other incentives. This is will add to the value proposition Municipalities and the province offer investors. Presently, Municipalities are limited in their ability to do this, outside of infrastructure investments. Lastly, consideration should be given to enabling Municipalities to partner with the private sector in ways beyond the normal leasing/contracting for service arrangements. Opportunities exists for Municipalities to invest in private infrastructure and private economic development initiatives which are for the benefit of an entire region. 2. Until the province is in a fiscally sound position, Municipalities will need to continue contributing to mandatory contributions. Do you support Recommendation #29? If not, explain why. The general consensus was that Council supported separating the provincial property tax from the Municipal property tax and that the preferred option would be to have separate bills. This will make the taxing more apparent for residents. Unfortunately, this will also mean an increase for some because the formula would now be assessment based rather than uniform assessment based. The provincial rate will then be the same across the province, which is a positive. The District of Chester will see an increase in mandatory contributions by $223,149. The result will be a negative impact to the Residential Tax Effort / Tax Burden. Residential Tax Effort / Tax Burden is an FCI, and one in which the District of Chester has a red flag. This is primarily due to the high assessment values. The District of Chester will make efforts to reduce its costs, however, these efforts can be comprised by the mandatory contribution rate, as the Municipality has no control over the mandatory contribution rate. This rate can go up annually and counteract the efforts of the District to reduce the residential tax burden. As such, it is the District’s recommendation that the formula for calculating the residential tax burden be revised to remove the expenses and corresponding tax revenue collected for mandatory contributions. This will enable an accurate measure of the District’s efforts to have sustainable Municipal service costs for its residents. Collaboration 1. Recommendation 30 calls for a better process for Municipalities to work with the province in establishing regulations, how do you envision this process? Answer: Being engaged earlier in discussions regarding regulation development would be beneficial; if the province is considering changing regulations then discussions with Municipalities prior to changes may be beneficial – Municipalities may have information from a different point of view that is relevant or helpful in drafting proposed changes. Providing “one year notice letters” with no detail whatsoever is not helpful to Municipalities. 2. Are there areas in your Municipality where you could benefit from Municipal Affairs assistance? If so, please explain. Answer: The assistance regarding asset management is a good program. Rather than have advisors for specific geographical areas, it may be more helpful to have advisors who have expertise in certain topics than can be drawn upon. Overall Questions on Recommendations 1. What recommendations do you think would be most beneficial to your Municipality in the long-term? 2. What recommendations do you think would be the most challenging for your Municipality? Answer: It is the position of the District of Chester that the recommendations are provided as a package, and not individually. As a package the District supports the recommendations. Council is hesitant to comment on what recommendations it supports in isolation of the other. If the recommendations are separated and considered on their own, meaning some are accepted and others not, the position of this Council and the opinions provided in this response may change. It is the District’s position that if such were to occur, UNSM and the province will need to undertake another round of consultation On behalf of Municipal Council, I would like to reiterate our Council’s appreciation of the hard work and dedication that the Steering Committee and Working Group have put into this review and to congratulate the Committee and Working Group on the same. This Review sets the stage for significant change in Municipal government, change that will enable sustainable and viable local government in Nova Scotia. If, on review of this submission, there are questions or you require clarification on this matter please do not hesitate to contact me. Yours truly, Allen Webber Warden cc Municipal Council Members Tammy Wilson, CAO The Provincial- Municipal Fiscal Review Consultative Report Summary Steering Committee of the Provincial-Municipal Fiscal Review Fall 2014 October 14, 2014 Please find enclosed the draft report and recommendations of the Provincial Municipal Fiscal Review. The report is now being circulated for consultation, with 4 dates set up across the province as follows: October 23 – Yarmouth – Rodd Grand October 28 – Truro – Holiday Inn October 29 – Port Hawkesbury – Civic Centre October 31 – Wolfville – Old Orchard Inn All municipalities and villages are encouraged to send representative(s) to one or more of these venues. Municipal and Provincial staff who participated in the review will be on hand to discuss the recommendations, answer questions, provide clarifications, etc. In terms of process, the Working Group will only accept written submissions from Municipal Councils and Village Commissions to the UNSM as official input on the recommendations. The purpose of the 4 sessions is to provide information on the recommendations to ensure municipalities and villages are well informed for the purposes of providing input in writing. To be clear on where these documents stand:  The recommendations included here are for consultation purposes only. As such, they are not approved by Government and they may not reflect the position of Government.  At this point, there are no financial commitments from either the Province or Municipalities associated with these draft recommendations. Some of the recommendations do have provincial or municipal cost estimates, but Government has not approved any funding for them, and municipalities have not agreed to them.  Once input from municipalities and villages has been submitted to UNSM, it will then be shared with the Working Group will bring that information back to the Government for consideration. December 15th is the targeted date to have all written submissions back from municipalities and villages. Please take the time to review this material and attend the consultation sessions. Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 2 Executive Summary The mandate of the Fiscal Review Committee was to determine how provincial support to municipalities could best be allocated. The Committee found that demographic and economic trends present major challenges for municipalities. In an effort to confront these challenges, the Committee made fourty-one recommendations to better allocate resources and increase collaboration. These recommendations were organized along five themes: Opportunities to Improve Government Structures The Fiscal Review committee explored a number of different approaches to reviewing the viability of municipalities, and encouraging restructuring under appropriate circumstances. The committee has developed a comprehensive approach to monitoring and evaluating the existing government structures across the Province. Key recommendations include:  Launching comprehensive viability reviews of municipalities that demonstrate three consecutive years of fiscal difficulties as measured by the Financial Condition Index.  Developing a suite of incentive programs to promote voluntary restructuring initiatives. For a fuller exploration of Structure, please see the Municipal Structure Options Review Recommendations. Opportunities to Improve Roads Equity The committee examined the relationship between different municipal structures and the maintenance and servicing of the local roads. It was acknowledged that rural municipalities generally have lower costs compared to towns with respect to their responsibilities. In an attempt to address this disparity, one recommendation is being advanced to:  Require rural municipalities to pay full cost-recovery to TIR for the roads that are covered under the service exchange. For a fuller exploration of Roads, please see the Local Roads Review Recommendations. Opportunities to Reallocate Scarce Resources The committee carefully examined existing grants to municipalities. In general, existing grants target important objectives and are based on sound principles. However, some changes would increase the sustainability of municipalities, and help target scarce funding dollars to top municipal priorities. Key recommendations include:  Developing a new unconditional operating grant to replace the equalization program.  Creating an arterial and collectors road grant.  Reallocating the NSPI PILT in a way that is reflective on the needs and priorities of municipalities. For a fuller exploration of Grants and Resources, please see the Operating Grants Review Recommendations. Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 3 Opportunities to Improve Revenue Systems The committee also investigated revenue generating options for municipalities, evaluating the current system against alternatives. While the shortcomings of the property tax regime in Nova Scotia are acknowledged, none of the alternatives examined are suitable as a wholesale replacement. The committee does provide suggestions for improving the current property tax system, including:  Providing greater municipal autonomy over the taxation of forest and recreational property.  Review municipal finance powers provided in legislation to provide broader authority to establish fair and effective property taxation and revenue regimes.  Introduce a Provincial Property Tax Rate to replace the current system of municipal contributions to education, corrections and housing. For a fuller exploration of Grants and Resources, please see the Revenue Options Review Recommendations. Opportunities to Improve Collaboration The committee found that there are significant opportunities for the province and its municipal partners to work more collaboratively. A lack of municipal involvement in the development of regulation has led to intense financial pressure in some municipalities. In addition, greater collaboration in planning and delivering services can help municipalities provide higher quality services at a lower cost. Key recommendations include:  Enhancing the consultation process with municipalities prior to regulatory change.  Developing an asset management program.  Generally improving the lines of communication between provincial and municipal staff. For a fuller exploration of Improving Collaboration, please see the External Expenditure Pressures, and the Non-Financial Support Recommendations. Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 4 Background Municipal governments play an essential role in our lives, providing vital local services that contribute to clean, safe, and productive communities. As the government closest to the people, municipalities also act as an important voice for communities, representing local interests to other orders of government. There are 54 municipal governments in Nova Scotia: 30 towns, 21 rural municipalities, and 3 regional municipalities. Municipalities have broad authorities under the Municipal Government Act and The Halifax Regional Municipality Charter to generate revenue and provide a wide range of local services including: policing, fire protection, transportation, water and wastewater services, land-use planning, and recreation programs. The relationship between local governments and the provincial and federal governments can be complex, and changes over time. In 2010, Service Nova Scotia and Municipal Relations (now the Department of Municipal Affairs) reviewed the municipal Equalization and Town Foundation Grant program. One of the key findings from this review indicated the program could not be reviewed in isolation from other grants and funding programs. It was recommended that a more holistic look at programs and services was needed. In 2012, the province responded to this recommendation by establishing the Provincial- Municipal Fiscal Review. This review was led by the Fiscal Review Steering Committee composed of municipal elected officials and provincial Deputy Ministers. The committee’s mandate was to review current programs and services to better meet municipal needs within the context of a balanced budget. Supported by a working group and a set of subcommittees, the Fiscal Review Committee examined:  the current state of Nova Scotia municipalities;  funding sources for municipalities;  municipal expenditures pressures;  non-financial supports for municipalities; and  municipal grants and contributions. The Report This document provides a brief summary of the major findings and recommendations of the committee. This summary is accompanied by a more detailed report, providing additional background information and research that contributed to the findings and recommendations. The full report is divided into two parts: the Current State of Municipalities outlines current trends and significant challenges influencing municipalities, and the Consultative Report outlines opportunities for the province and its municipal partners to address coming challenges and better serve Nova Scotia communities. Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 5 Taken together the Committee’s recommendations represent an improved allocation of provincial support which follows the guiding principles set out at the beginning of the project: Guiding Principles of the Fiscal Review 1. Effectiveness: Recommendations from the review should improve the transparency and structure of programs and services provided by the province and municipalities, to provide optimal benefit for taxpayers. 2. Building Relationships: Recommendations from the review should strengthen communication, consultation, sharing of resources and cooperation amongst municipal governments and between the province and municipal governments. 3. Municipal viability: Recommendations from this review should strengthen municipalities’ abilities to provide the basic level of service at an acceptable tax burden. 4. Financial constraint: Recommendations from the review must consider the financial limitations of both the province and municipalities individually and collectively. Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 6 Part II - Findings and Recommendations Opportunities to Improve Government Structures Given the demographic, economic, and financial pressure experienced by some municipalities, some consideration of current municipal structures was warranted. The 2012 Towns Task Force report made several recommendations relating to structure. Most significantly, the Task Force recommended that any municipality scoring poorly on a set of financial indicators should undertake a viability review, including financial analysis and community consultation to assess viability. The Fiscal Review Committee endorses the findings of the Towns Task Force and is eager for the implementation of these recommendations and several others which are likely to provide a benefit to municipalities as a whole. Recommendation 1 - The Province will formalize FCI tracking as the tool that will be used to monitor the financial health of municipalities. Recommendation 2 – The Province, with UNSM and AMA, will develop materials to help ensure that municipalities understand the FCI and have access to best practices to improve their financial health. Recommendation 3 – The Province will develop a suite of programs designed to assist any municipality that chooses, or is required, to initiate a consolidation process. Recommendation 4 - After three consecutive years of red-flagged FCI indicators exceeding the threshold, municipalities will be subject to a comprehensive review. Recommendation 5 – Beginning on March 31, 2015, the FCI tracker will be applied as a trigger for reviews for any municipality that has exceeded the red-flag trigger threshold for three consecutive years. Recommendation 6 –Municipalities will be encouraged to voluntarily request a review at any time, for any reason. Recommendation 7 - In extraordinary circumstances, where it is jointly agreed upon by the UNSM and DMA that there is a need, a municipality could be targeted for a review process. Recommendation 8- The review will provide all parties with binding outcomes that will identify the conditions necessary for municipal viability. Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 7 Recommendation 9 - The reviewed municipality, other affected municipalities and provincial officials will have 90 days to develop an Action Plan to achieve the outcomes identified in the review. Recommendation 10 - The Province, upon receipt of the Action Plan, will issue a Ministerial Order within 30 days. If the Province does not receive an Action Plan within 90 days, the Province will issue a Ministerial Order. Recommendation 11 - Municipalities will submit progress reports to the Province periodically once a transition process has begun. FCI tracking will continue. Recommendation 12 – In the event that a review reveals that the challenges facing a municipality are such that they cannot be addressed through structural changes or a realignment of service standards, OR a municipality implements their Action Plan and improvements are not realized, then a tailored public policy process will be launched. Recommendation 13 – No new villages will be created and no new powers will be given to villages beyond those that currently exist. Recommendation 14 – All incorporated villages in Nova Scotia should be phased out. Existing villages should be given the opportunity to apply for town status, merge with an adjacent town, or dissolve into their encompassing rural municipality as they see fit. Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 8 Opportunities to Improve Roads Equity Currently, rural municipalities in Nova Scotia are responsible for the maintenance of local roads constructed after April 1, 1995, while all local roads constructed before that date are administered and controlled by The Department of Transportation and Infrastructure Renewal (NSTIR). Meanwhile, towns are responsible for maintaining all roads within their boundaries. As well, in many instances, provincial routes pass through towns and are considered to fall under the administration and control of the town in which they are located. While the majority of towns in Nova Scotia possess the equipment and resources necessary to maintain roads within their jurisdictions, they are unable to achieve the same economies of scale as NSTIR. As a result, road maintenance costs are significantly higher for towns than for rural municipalities. To address this disparity, the committee is putting forward the following recommendation: Recommendation 15 - Rural municipalities will now be required to pay TIR the full maintenance recovery cost (approx. $6700 per kilometer plus annual CPI increase) for maintenance of the 745 km of local roads maintained under the Service Exchange agreement. If rural municipalities so choose, TIR will also service (at cost + capital – approx. $13,500 per kilometer plus CPI) the 138 km of roads that rural municipalities are currently fully responsible for. In addition, the Province will engage in an education campaign to ensure that all municipalities understand the policies and practices that TIR has in place to trade-off roads maintenance responsibilities or ownership where possible so as to ensure that maximum efficiency. Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 9 Opportunities to Reallocate Scarce Resources The Operating Grant Every year, the Province, through the Department of Municipal Affairs, distributes tens of millions of dollars in grants to municipalities. Despite this money, Nova Scotia’s municipalities are facing significant financial and demographic headwinds, which are increasingly raising questions about the long term viability of some communities. At the same time, the Provincial Government is facing similar pressures, with respect to an aging population and slow economic growth. Accordingly, this report seeks to explore the current grants structure that the Province maintains for municipalities, to ensure that it supports and promotes the long term viability of Nova Scotia’s municipalities in an efficient and sustainable way. The Working Group feels that it is vital for all of the regions of Nova Scotia to be successful, and thrive in their own way. Through this comprehensive review, it has become clear that there is no simple way to address the needs of Nova Scotia’s municipalities while respecting the Province’s fiscal reality. At the same time, it is the consensus of the Working Group that Nova Scotia’s current grants framework – the equalization program in particular – is failing to ensure the long term viability of Nova Scotian municipalities. To address these concerns, the Working Group is advancing the following recommendations: Recommendation 16 – The group recognizes that the fundamental purpose of equalization still stands. However, there are identified issues with the equalization grant in its current form. Specifically, it discourages restructuring and does not always allocate funds to municipalities with the greatest need, as identified by other financial measures. As such, it is recommended that the equalization program be frozen at the 2014 levels to allow time for an alternative equalization grant to be developed based on improved data (such as reliable density measure to address the restructuring issue and household income figures to support an ability-to-pay- measure in the program). As well, consideration should be given to the standard service levels used to determine the municipal need. The improved operating grant, to start in 2018, will better addresses the needs of municipalities, and encourages the outcomes necessary for ensuring Nova Scotia’s municipalities remain viable. Similarly, the Towns Foundation Grant would be frozen at its current distribution, regardless of structural change, and then be re-examined as part of the improved operating grant structure. Recommendation 17 – Noting concerns over CBRM's viability, and noting that many options for improved viability available to most of the other municipalities in Nova Scotia (such as shared servicing, structural changes, etc.) are not realistic options for CBRM, it is recommended that the municipality and the Province conduct an immediate joint review to assess the viability issues facing CBRM. This review will Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 10 make recommendations on how to best address the specific issues facing CBRM, including recommendations on appropriate provincial grants for the municipality. Recommendation 18 – During the freeze period, the $30 million funded through equalization will be funded by the province. Recommendation 19 – The NSPI Grant should be calculated based on rate times assessment for host municipalities, where one standard rate is determined for the entire Province. This recommendation will not impact the payment that NSPI makes to the Province. Indeed, NSPI will continue to make payments as per existing legislation, this recommendation only impacts how those monies are allocated among municipalities. Additionally, at no time will the value of this grant exceed the value of the PILT that NSPI makes to the Province. Recommendation 20 – The Province will eliminate the HST offset program, as there is no sound policy rational for the program. Recommendation 21 – The Province will create a program/suite of programs dedicated to promoting innovation and capacity building activities for municipalities, including the comprehensive municipal reviews recommended by this committee. To fund these activities, the Province should allocate $1.5 million from the NSPI PILT to the $250,000 that is currently budgeted for municipal capacity building programs. Recommendation 22 – PCAP should be expanded by $14.2 Million – the remaining NSPI PILT monies – and the PCAP program should be broadened to include roads and other capital projects deemed critical by municipalities. It is intended that in the initial years of this program expansion, some monies should be used to develop an Asset Management Program for all municipalities outside the HRM1. Recommendation 23 – The Province will provide a provincial grant for arterial and collector roads (once a comprehensive inventory is developed). The grant will be allocated at a rate of $9,000 per kilometer of arterial and collector roads within a municipality’s boundaries (this is approximately the difference between the average maintenance costs that towns pay for roads and TIR’s cost). 1 HRM is exempt because they have already invested in developing their own. Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 11 Opportunities to Improve Revenue Systems Early on in the Fiscal Review process it became apparent that a comprehensive review of the finance powers available to municipalities was necessary. Nova Scotia municipalities rely heavily on the property tax, which provides a stable revenue source, and has some measure of elasticity that have allowed municipalities to fund increasing costs of providing local services. However, the relationship between tax burden and ability to pay has been questioned, and there is some concern that the population decline in rural Nova Scotia could have a long term impact on property tax revenue in the province. The Working Group identified several different potential sources of tax revenue, which are explored for the purposes of this exercise, including a municipal income tax, a municipal sales tax, a municipal corporate income tax, and others. All options, including property tax, are then assessed according to 6 criteria: vertical and horizontal equity, economic efficiency, accountability, elasticity & stability and administrative burden. Each option is evaluated in the municipal context of collecting revenue sufficient to fund local services and balance budgets on a yearly basis. There are no easy solutions for increasing funding for municipal services, however, there are some measurable improvements that could be made, and further areas that could be explored which may improve municipal funding and address equity concerns. For example, given the degree to which municipalities rely on property taxes to fund their operations, they should be given greater freedom over how and how much they tax properties. Should the legislature decide that certain sectors of the economy are best subsidized through the property tax system, then it should be incumbent upon the Province to provide a realistic and predictable offsetting grant to the affected municipalities. The Working Group is providing the following six recommendations intended to help address the financial and demographic pressures facing many municipalities across the country, while respecting the existing tax burden of Nova Scotia residents. Recommendation 24 – Although the shortcomings of the current system must be acknowledged, property taxes should continue to be the primary source of revenue for municipalities. Recommendation 25 – The Province should amend legislation to provide greater municipal autonomy over property taxation of forest and recreational property. Recommendation 26- A full review of the exempt agricultural properties should be conducted to determine if the benefit of the tax reduction is going to those who are actively farming. Recommendation 27 – The province and its municipal partners review the finance powers provided in the Municipal Government Act and the Halifax Regional Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 12 Municipality Charter to provide municipalities with broader authority to establish fair and effective property taxation and revenue regimes. Recommendation 28 – Special tax legislation that restricts property taxation or revenue will be reviewed to determine appropriateness. Recommendation 29: The Province should introduce a Provincial Property Tax Rate, which will be applied to all taxable property in Nova Scotia. The intended goal of this tax is to replace the current system of municipal contributions to education, corrections and housing, while increasing the transparency of the current tax system. Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 13 Opportunities to Improve through Collaboration Impact of Regulation Provincial decisions can have a have a major impact on municipal finances. The pressure can come as a result of budget decisions to reduce municipal grants, or increase municipal contributions. Financial pressures are also created by the province through changes in municipal regulations. During the Fiscal Review, several regulations were identified as directly impacting municipal expenditures. Based on the information gathered, the cost to achieve compliance with the quantified regulatory pressures will exceed $1 billion. This figure does not include the unquantified regulatory pressures, and the majority of the estimates address only the new capital spending required by regulation, without factoring increased operating costs. If municipalities borrowed to pay for these additional capital expenditures it would increase municipal debt by 313%. Even if the cost was shared equally among federal, provincial and municipal governments, total municipal debt would still increase by 70%. This will be a major financial pressure for some municipalities, who will struggle to meet all of the targets set out in regulation, let alone make regular investments in existing aging infrastructure or invest in other priorities. Shared Services & Partnerships Municipal expenditures have been growing steadily at just above 5% per year. In the context of the current economic climate, characterized by slow economic growth and very little population growth outside of the Halifax Region, the current rate of expenditure growth is not sustainable for either the provincial or municipal governments. During the review, the committee heard about more than two hundred examples of municipalities providing services in new ways through partnerships with other municipalities and agencies. The committee strongly urges the province and its municipal partners to continue these efforts. Asset Management Over the past decade, the federal infrastructure programs delivered by the Canada-Nova Scotia Infrastructure Secretariat have helped fund municipal infrastructure projects. However, there is no systematic approach for making decisions regarding municipal Regulatory Pressures Estimate ($Millions) CCME Waste Water Standards (Including Collection Systems) $1,066 2002 Drinking Water Standards $17 2012 Drinking Water Standards Unavailable LED Streetlights (Stranded Assets Cost) $23 Solid Waste Management Targets Unavailable Climate Change Adaptation Unavailable ESTIMATED TOTAL $1,106 Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 14 infrastructure assets across the spectrum of infrastructure activities, including building, operating, maintaining, replacing, and decommissioning these types of assets. By incorporating community, municipal, and regulatory priorities together in these plans, provincial and municipal officials will be far better positioned to prioritize infrastructure investments, and will better position Nova Scotia to leverage federal infrastructure dollars. There also may be potential to jointly develop the asset management program with other agencies such as school boards, to reduce administrative costs, and further integrate provincial and municipal capital investments for maximum effectiveness. The Working Group is advancing the following 13 recommendations to help improve intergovernmental communications, address the issues of regulatory impacts, the need for improved shared services and partnerships, and the need for an asset management system, as well as several other related issues: Recommendation 30 – Stakeholder involvement must occur early in the process of regulations development and must involve both economic and fiscal analyses2 of the proposed changes so that the regulatory decisions are made with a full understanding of implementation issues; a fully informed process that engages municipalities will likely result in greater compliance with, and more cost effective regulations. Recommendation 31 – New regulations should always have clear and measurable outcomes, they should include sun-setting provisions, and they should be regularly reviewed for efficiency and effectiveness. Recommendation 32 – Departments working on new regulations for municipalities must engage with the Department of Municipal Affairs to determine the total cumulative impact of all provincially and federally imposed municipal regulations. To support this work, the Department of Municipa l Affairs will collect, on an annual basis, the economic and fiscal analyses conducted for all proposed and existing major regulations imposed on municipalities. Recommendation 33 – Several existing regulations, specifically, the solid waste diversion and CCME wastewater regulations should be set aside until a full economic and fiscal analysis can be completed. Recommendation 34 – Subsequently, and going forward, any new regulations should not move forward unless municipal/provincial/federal governments have agreement on how they will be funded.3 2 Economic analysis assesses the costs and benefits of implementing the regulations, fiscal analysis assesses the affordability of the regulations. 3 Recommendations 33 and 34 were put forward by the Working Group, but have been removed by the Steering Committee. They will not be included in the package for consultation. Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 15 Recommendation 35 – Alternative service delivery mechanisms, including shared service models, must be considered by municipalities and the province as a means to improve efficiencies wherever possible. Recommendation 36 – The Province, the AMANS and the UNSM should work together to developing a Provincial/ Municipal Strategic plan to determine the priority areas for cooperative initiatives (i.e. Towns Task Force implementation, MGA Review, Elections Act Review, etc…). Recommendation 37 – The Province and municipalities should establish a staff level roundtable to discuss municipal issues and to provide an ongoing venue for continuous dialogue and collaboration. This roundtable should encourage two way communication around issues that impact the province and municipalities Recommendation 38 – The Province, the AMANS and the UNSM should develop a provincial wide strategy for addressing Asset Management in Nova Scotia. A key part of this strategy would include an inventory of assets throughout the province to identify the highest priorities for investment. This should be identified as a priority in the Provincial/Municipal Strategic Plan and should build on the Asset Management Program currently being developed by HRM. Recommendation 39 – The AMA, UNSM and Municipal Affairs staff should continue to collaborate on education and training through the AMANS Education Committee. This committee should complete, implement, and continuously evaluate the recommendations in the current Education and Training Strategy for Municipal Employees and Elected Officials and should also continue to publish a joint training calendar. Recommendation 40 – The Province should explore opportunities for staff secondments to help with municipal resource issues and succession planning. Recommendation 41 – Municipal Affairs should undertake an organizational review to determine if the existing structure best meets the needs of both the department and municipal partners. In particular, the role, area of expertise and structure of the Municipal Advisors service should be reviewed. Recommendation 42 – Municipal Affairs should provide an organizational chart, including roles and contact information, for all DMA staff for use by municipalities. Recommendation 43 – Municipal Affairs should develop new processes for developing and sharing information with municipalities. Based on priority areas identified through the provincial/municipal strategic plan, the department should work with municipalities to produce and share best practices materials, policies, data analysis, etc. Municipal Affairs should identify methods for sharing the analysis Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 16 and findings from the data municipalities provides to the division through a system, such as a data portal. Municipal Affairs should also develop a more user friendly financial reporting system to improve and expedite the financial reporting process. Consultation Plan The work presented in this report is the fruit of extensive collaboration between municipalities and the province. In spirit of enhanced consultation recommended here, the Fiscal Review Committee is planning a consultation process with municipalities before finalizing the report. We envision four parts to the consultation process: 1. Discussions: A series of regional meetings will be held around the Province. At these meetings, presentations will be held on the report and attending elected officials and municipal staff will be given the opportunity to discuss - in detail - the information and recommendations. 2. Review: This consultative report will be sent directly to each municipality for council and staff to review and consider. During this period councils will also be encouraged to forward official council positions to the Fiscal Review Committee. 3. Revise: The Fiscal Review Committee will take the feedback received from councils and during the discussions under consideration and revise the consultative report where appropriate. Provincial-Municipal Fiscal Review Part II: Consultative Report Fall 2014 Findings and Recommendations 17 4. Release: The final revised report will be released publicly and for government consideration. Conclusions Municipalities are facing significant challenges in the coming years. Broad societal trends including declining population and slow economic growth are impacting many Nova Scotia communities. Municipalities’ expenditures have been growing faster than the economy in recent years, driven in part by mandatory contributions and new costs as a result of provincial and federal regulation. Municipalities struggle to maintain existing service levels in the face of rising costs and other external pressures. These trends represent serious issues that municipalities must tackle head on if they are to remain viable. Key recommendations include: a more thorough consultation process prior to enacting regulations, a Provincial Property Tax to improve the transparency of municipal contributions, a freeze of the provincial Equalization Program, and more concerted collaborative efforts to tackle common issues. These changes should lead to significant improvements for municipalities. This project has demonstrated the ability of the province and municipalities to work closely together. Provincial and municipal representatives have engaged in and benefitted from extensive information sharing and collaboration throughout the process. The Fiscal Review Committee members sincerely hope that this project represents the beginning of a much closer relationship between the province and its municipal partners to the benefit of citizens, communities and governments across Nova Scotia. Draft - For Discussion Purposes Only Recommendation Change in Funds to Municipalities Change in Funds from Municipalities Net Financial Impact to Municipalities NSPI Host Grant $10.42 M - Equalization $. M - HST Offset -$6. M - PCAP $14.2 M - Innovation & Capacity Building $1.5 M - Mandatory Contributions -- Roads $2.26 M $1.27 M Total $22.37 M $1.27 M $21.11 M Notes: Once municipalities and villages have had the opportunity to provide input, that information will be brought back to the UNSM and Government for consideration. December 15th is the target date to have all written submissions back from municipalities and villages. ESTIMATED FINANCIAL IMPACTS FOR DISCUSSION PURPOSES ONLY. These recommendations are being put forward for consultation only. All proposed values are estimates and subject to change. PROVINCIAL MUNICIPAL FISCAL REVIEW These recommendations were jointly developed by a Working Group of staff from the AMANS, UNSM and Department of Municipal Affairs. The recommendations you have received are for consultation purposes only. As such, they are not approved by Government and they may not reflect the position of Government. At this point, there are no financial commitments from either the Province or Municipalities associated with these draft recommendations. Some of the recommendations do have provincial or municipal cost estimates, but Government has not approved any funding for them, and municipalities have not agreed to them. PROVINCIAL / MUNICIPAL FISCAL REVIEW ESTIMATED FINANCIAL IMPACTS Operating Grants CURRENT NSPI Host Grant (13/14) PROPOSED Rate times assessment NSPI Host Grant CHANGE in NSPI Host Grant CHANGE in HST Offset (Eliminated) CURRENT Equalization and Towns Foundation Grant (13/14) - Frozen for 3 Years Regionals CBRM 2,481,241$ 4,702,176$ 2,220,935$ (595,361)$ 15,653,202$ HRM 3,020,746$ 5,724,586$ 2,703,840$ (3,239,625)$ -$ ROQ 724,071$ 1,372,180$ 648,109$ (47,514)$ 1,126,156$ Regionals Total 6,226,058$ 11,798,941$ 5,572,883$ (3,882,500)$ 16,779,358$ Towns Amherst 8,762$ 16,604$ 7,842$ (108,647)$ 1,238,943$ Annapolis Royal 290,255$ 550,060$ 259,805$ (8,769)$ 67,942$ Antigonish - Town 3,468$ 6,572$ 3,104$ (27,022)$ 166,196$ Berwick -$ -$ -$ (20,882)$ 252,572$ Bridgetown 48$ 91$ 43$ (6,473)$ 204,081$ Bridgewater 13,752$ 26,062$ 12,310$ (87,906)$ 434,985$ Clark's Harbour -$ -$ -$ (5,079)$ 185,305$ Digby - Town -$ -$ -$ (16,725)$ 351,047$ Hantsport 212$ 402$ 190$ (16,574)$ 88,540$ Kentville 8,218$ 15,574$ 7,356$ (56,059)$ 128,711$ Lockeport 642$ 1,216$ 574$ (4,440)$ 160,182$ Lunenburg - Town -$ -$ -$ (28,297)$ 50,000$ Mahone Bay 854$ 1,619$ 765$ (11,005)$ 50,000$ Middleton 492$ 933$ 441$ (23,722)$ 336,546$ Mulgrave 751$ 1,423$ 672$ (3,659)$ 129,151$ New Glasgow 1,016$ 1,926$ 910$ (100,295)$ 1,037,198$ Oxford -$ -$ -$ (11,789)$ 181,229$ Parrsboro 2,396$ 4,541$ 2,145$ (9,122)$ 368,912$ Pictou - Town 916$ 1,737$ 821$ (28,431)$ 562,675$ Port Hawkesbury 9,054$ 17,158$ 8,104$ (41,057)$ 276,019$ Shelburne - Town -$ -$ -$ (10,814)$ 356,451$ Springhill 1,045$ 1,980$ 935$ (38,661)$ 652,641$ Stellarton 17,229$ 32,651$ 15,422$ (58,531)$ 506,636$ Stewiacke -$ -$ -$ (8,933)$ 195,986$ Trenton 968,314$ 1,835,042$ 866,728$ (22,404)$ 415,383$ Truro 17,579$ 33,313$ 15,734$ (87,536)$ 1,305,504$ Westville 89$ 169$ 80$ (23,915)$ 681,807$ Windsor 3,976$ 7,535$ 3,559$ (33,400)$ 407,670$ Wolfville 3,623$ 6,866$ 3,243$ (41,963)$ 71,137$ Yarmouth - Town 14,153$ 26,822$ 12,669$ (80,794)$ 655,608$ Towns Total 1,366,844$ 2,590,296$ 1,223,451$ (1,022,904)$ 11,519,057$ Rural Municipalities Annapolis 223,346$ 423,261$ 199,915$ (52,304)$ 637,006$ Antigonish - Mun 4,691$ 8,890$ 4,199$ (58,820)$ 4,962$ Argyle 10,220$ 19,368$ 9,148$ (16,472)$ 147,426$ Barrington 2,584$ 4,896$ 2,312$ (19,407)$ 138,926$ Chester 20,576$ 38,993$ 18,417$ (64,530)$ -$ Clare 5,993$ 11,357$ 5,364$ (31,829)$ 223,704$ Colchester 18,110$ 34,320$ 16,210$ (173,163)$ 299,086$ Cumberland 30,373$ 57,560$ 27,187$ (38,418)$ 583,977$ Digby - Mun 347,766$ 659,048$ 311,282$ (20,812)$ 358,474$ Guysborough 122,870$ 232,850$ 109,980$ (101,020)$ 266,000$ Hants East 3,044$ 5,768$ 2,724$ (103,091)$ -$ Hants West 192,101$ 364,048$ 171,947$ (32,131)$ 34,983$ Inverness 25,517$ 48,356$ 22,839$ (36,061)$ 397,160$ Kings 504,399$ 955,882$ 451,483$ (121,293)$ -$ Lunenburg - Mun 3,910$ 7,410$ 3,500$ (61,757)$ -$ Pictou - Mun 10,598$ 20,085$ 9,487$ (39,276)$ 303,464$ Richmond 1,303,489$ 2,470,228$ 1,166,739$ (45,458)$ -$ Shelburne - Mun 28,901$ 54,769$ 25,868$ (16,880)$ 58,258$ St. Mary's 3,261$ 6,180$ 2,919$ (9,600)$ 180,638$ Victoria 1,044,502$ 1,979,425$ 934,923$ (25,882)$ -$ Yarmouth - Mun 137,591$ 260,747$ 123,156$ (26,390)$ 117,522$ Rurals Total 4,043,842$ 7,663,443$ 3,619,601$ (1,094,594)$ 3,751,586$ Province Total 11,636,744$ 22,052,681$ 10,415,936$ (5,999,998)$ 32,050,001$ Note : Positive values indicate increased grants to municipalities or decreased costs for municipalities. NSPI The recommendation is calculate the grant by NSPI assets * average commercial rate (weighted by Municipalities with NSPI assets) The equalization recommendation would maintain the 2014 distribution, and total value of the grant for three years, beginning in fiscal 2015. DRAFT - FOR DISCUSSION PURPOSES ONLY ALL VALUES ARE ESTIMATES AND SUBJECT TO CHANGE PROVINCIAL / MUNICIPAL FISCAL REVIEW ESTIMATED FINANCIAL IMPACTS Regionals CBRM HRM ROQ Regionals Total Towns Amherst Annapolis Royal Antigonish - Town Berwick Bridgetown Bridgewater Clark's Harbour Digby - Town Hantsport Kentville Lockeport Lunenburg - Town Mahone Bay Middleton Mulgrave New Glasgow Oxford Parrsboro Pictou - Town Port Hawkesbury Shelburne - Town Springhill Stellarton Stewiacke Trenton Truro Westville Windsor Wolfville Yarmouth - Town Towns Total Rural Municipalities Annapolis Antigonish - Mun Argyle Barrington Chester Clare Colchester Cumberland Digby - Mun Guysborough Hants East Hants West Inverness Kings Lunenburg - Mun Pictou - Mun Richmond Shelburne - Mun St. Mary's Victoria Yarmouth - Mun Rurals Total Province Total Note : Positive values indicate increased grants to municipalities or decreased costs for municipalities. CURRENT Total Contributions PROPOSED Provincial Property Tax CHANGE in Contributions (15,102,671)$ (13,366,229)$ 1,736,442$ (122,624,282)$ (127,249,695)$ (4,625,414)$ (2,889,202)$ (2,726,416)$ 162,785$ (140,616,154)$ (143,342,341)$ (2,726,187)$ (1,868,795)$ (1,615,295)$ 253,499$ (135,856)$ (144,290)$ (8,434)$ (1,433,267)$ (1,199,613)$ 233,654$ (477,097)$ (476,663)$ 434$ (214,554)$ (152,016)$ 62,538$ (2,030,610)$ (2,004,029)$ 26,581$ (143,385)$ (115,961)$ 27,424$ (433,312)$ (347,820)$ 85,492$ (258,032)$ (245,044)$ 12,988$ (1,470,470)$ (1,517,435)$ (46,965)$ (99,747)$ (94,084)$ 5,663$ (795,805)$ (795,472)$ 333$ (392,405)$ (415,421)$ (23,016)$ (384,960)$ (340,017)$ 44,943$ (151,054)$ (154,283)$ (3,229)$ (1,941,810)$ (1,803,588)$ 138,222$ (236,422)$ (235,967)$ 455$ (250,236)$ (203,049)$ 47,187$ (602,840)$ (508,693)$ 94,147$ (720,595)$ (660,126)$ 60,469$ (323,208)$ (278,844)$ 44,364$ (601,931)$ (354,628)$ 247,303$ (840,874)$ (822,763)$ 18,111$ (255,967)$ (245,437)$ 10,530$ (403,759)$ (303,686)$ 100,073$ (2,638,620)$ (2,628,709)$ 9,911$ (486,791)$ (441,869)$ 44,922$ (712,517)$ (699,719)$ 12,798$ (753,914)$ (1,256,564)$ (502,650)$ (1,589,544)$ (1,351,239)$ 238,305$ (22,648,377)$ (21,412,325)$ 1,236,052$ (3,412,589)$ (3,316,871)$ 95,718$ (3,107,145)$ (3,168,274)$ (61,129)$ (1,590,033)$ (1,557,521)$ 32,512$ (1,361,840)$ (1,354,051)$ 7,789$ (4,477,173)$ (4,700,322)$ (223,149)$ (1,745,701)$ (1,721,503)$ 24,198$ (7,108,631)$ (6,997,278)$ 111,353$ (3,804,835)$ (3,763,605)$ 41,230$ (1,417,680)$ (1,281,651)$ 136,029$ (1,509,395)$ (1,423,595)$ 85,800$ (4,582,640)$ (4,870,886)$ (288,246)$ (2,877,277)$ (2,926,122)$ (48,845)$ (3,151,151)$ (3,027,818)$ 123,333$ (11,313,141)$ (10,310,355)$ 1,002,786$ (7,604,060)$ (7,913,539)$ (309,479)$ (4,590,739)$ (4,518,043)$ 72,696$ (2,875,286)$ (2,429,699)$ 445,588$ (1,192,361)$ (1,180,522)$ 11,839$ (575,010)$ (534,411)$ 40,599$ (2,223,123)$ (2,049,317)$ 173,807$ (2,148,282)$ (2,132,574)$ 15,708$ (72,668,092)$ (71,177,957)$ 1,490,135$ -$ (235,932,623)$ (235,932,623)$ -$ Mandatory Contributions Some municipalities have special agreements with their neighbouring municipalities that see them make education contributiuons to the Province differently than most. For example, the municipalities in Kings County make their mandatory contributions based on student enrollment levels. As such, a switch to funding edcuation costs based on taxible assessment - for those municipalities - could result in a signifiicant adjustment to their expected contributions (e.g. Wolfville and Kings). Nothing in this recommendation precludes a similar agrteement from being struck in the future between neighbouring units, but for the purposes of this work, it was not modeled. Mandatory Contributiouns would be replaced by a single provincial rate would be applied to taxable assessment in order to raise the revenue necessary for educations, corrections and housing. Note that this does not consider any type of reallocation of education contributions between units (as is currently done in Kings County) DRAFT - FOR DISCUSSION PURPOSES ONLY ALL VALUES ARE ESTIMATES AND SUBJECT TO CHANGE PROVINCIAL / MUNICIPAL FISCAL REVIEW ESTIMATED FINANCIAL IMPACTS Regionals CBRM HRM ROQ Regionals Total Towns Amherst Annapolis Royal Antigonish - Town Berwick Bridgetown Bridgewater Clark's Harbour Digby - Town Hantsport Kentville Lockeport Lunenburg - Town Mahone Bay Middleton Mulgrave New Glasgow Oxford Parrsboro Pictou - Town Port Hawkesbury Shelburne - Town Springhill Stellarton Stewiacke Trenton Truro Westville Windsor Wolfville Yarmouth - Town Towns Total Rural Municipalities Annapolis Antigonish - Mun Argyle Barrington Chester Clare Colchester Cumberland Digby - Mun Guysborough Hants East Hants West Inverness Kings Lunenburg - Mun Pictou - Mun Richmond Shelburne - Mun St. Mary's Victoria Yarmouth - Mun Rurals Total Province Total Note : Positive values indicate increased grants to municipalities or decreased costs for municipalities. PROPOSED - Additional Costs of Local Roads Maintenance PROPOSED - Arterials and Collectors Grant CHANGE in Roads Grants and Costs -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 110,160$ 110,160$ -$ 28,440$ 28,440$ -$ 64,260$ 64,260$ -$ 44,190$ 44,190$ -$ 38,070$ 38,070$ -$ 142,020$ 142,020$ -$ 31,860$ 31,860$ -$ 63,360$ 63,360$ -$ 23,220$ 23,220$ -$ 131,130$ 131,130$ -$ 34,920$ 34,920$ -$ 57,240$ 57,240$ -$ 59,400$ 59,400$ -$ 55,890$ 55,890$ -$ 91,170$ 91,170$ -$ 149,400$ 149,400$ -$ 76,050$ 76,050$ -$ 148,140$ 148,140$ -$ 65,250$ 65,250$ -$ 19,170$ 19,170$ -$ 57,870$ 57,870$ -$ 85,500$ 85,500$ -$ 103,140$ 103,140$ -$ 49,770$ 49,770$ -$ 44,640$ 44,640$ -$ 160,290$ 160,290$ -$ 119,160$ 119,160$ -$ 59,760$ 59,760$ -$ 49,860$ 49,860$ -$ 93,420$ 93,420$ -$ 2,256,750$ 2,256,750$ (48,263)$ -$ (48,263)$ (25,432)$ -$ (25,432)$ (40,477)$ -$ (40,477)$ (28,594)$ -$ (28,594)$ (61,251)$ -$ (61,251)$ -$ -$ -$ (180,608)$ -$ (180,608)$ (70,652)$ -$ (70,652)$ (17,595)$ -$ (17,595)$ (25,687)$ -$ (25,687)$ (109,293)$ -$ (109,293)$ (57,341)$ -$ (57,341)$ (49,096)$ -$ (49,096)$ (229,755)$ -$ (229,755)$ (134,470)$ -$ (134,470)$ (51,544)$ -$ (51,544)$ (50,796)$ -$ (50,796)$ (10,540)$ -$ (10,540)$ (8,398)$ -$ (8,398)$ (41,820)$ -$ (41,820)$ (24,956)$ -$ (24,956)$ (1,266,568)$ -$ (1,266,568)$ (1,266,568)$ 2,256,750$ 990,182$ Roads Rural municipalities will now be required to pay TIR the full maintenance recovery cost (approx. $6700 per kilometer plus annual CPI increases) for maintenance of the 745 km of local roads maintained under the Service Exchange agreement. If rural municipalities so choose, TIR will also service (at cost + capital – approx. $13,500 per kilometer plus CPI) the 138 km of roads that rural municipalities are currently fully responsible for. An arterials and collectors grant will be allocated at a rate of $9,000 per kilometer of arterial and collector roads within a municipality’s boundaries (this is approximately the difference between the average maintenance costs that towns pay for roads and TIR’s cost) DRAFT - FOR DISCUSSION PURPOSES ONLY ALL VALUES ARE ESTIMATES AND SUBJECT TO CHANGE PROVINCIAL / MUNICIPAL FISCAL REVIEW ESTIMATED FINANCIAL IMPACTS Regionals CBRM HRM ROQ Regionals Total Towns Amherst Annapolis Royal Antigonish - Town Berwick Bridgetown Bridgewater Clark's Harbour Digby - Town Hantsport Kentville Lockeport Lunenburg - Town Mahone Bay Middleton Mulgrave New Glasgow Oxford Parrsboro Pictou - Town Port Hawkesbury Shelburne - Town Springhill Stellarton Stewiacke Trenton Truro Westville Windsor Wolfville Yarmouth - Town Towns Total Rural Municipalities Annapolis Antigonish - Mun Argyle Barrington Chester Clare Colchester Cumberland Digby - Mun Guysborough Hants East Hants West Inverness Kings Lunenburg - Mun Pictou - Mun Richmond Shelburne - Mun St. Mary's Victoria Yarmouth - Mun Rurals Total Province Total Note : Positive values indicate increased grants to municipalities or decreased costs for municipalities. CHANGE - Net of NSPI, HST Offset, Mandatory Contributions and Road Grants/Costs CHANGE - EXCLUDING MANDATORY CONTRIBUTIONS. Net of NSPI, HST Offset and Road Grants/Costs 3,362,015$ 1,625,574$ (5,161,198)$ (535,785)$ 763,380$ 600,595$ (1,035,803)$ 1,690,383$ 262,855$ 9,355$ 271,042$ 279,476$ 273,996$ 40,342$ 23,742$ 23,308$ 94,179$ 31,640$ 93,005$ 66,424$ 54,205$ 26,781$ 132,127$ 46,635$ 19,824$ 6,836$ 35,461$ 82,427$ 36,718$ 31,054$ 29,276$ 28,943$ 26,143$ 49,160$ 77,551$ 32,609$ 84,954$ 88,183$ 188,237$ 50,015$ 64,716$ 64,261$ 188,350$ 141,163$ 131,786$ 37,640$ 46,686$ (13,783)$ 91,420$ 47,056$ 295,077$ 47,774$ 78,142$ 60,031$ 51,367$ 40,837$ 989,038$ 888,964$ 98,399$ 88,488$ 140,246$ 95,325$ 42,717$ 29,919$ (491,510)$ 11,140$ 263,599$ 25,295$ 3,693,349$ 2,457,297$ 195,066$ 99,348$ (141,182)$ (80,053)$ (15,289)$ (47,801)$ (37,900)$ (45,689)$ (330,513)$ (107,364)$ (2,268)$ (26,465)$ (226,208)$ (337,561)$ (40,653)$ (81,883)$ 408,904$ 272,875$ 69,074$ (16,727)$ (497,906)$ (209,660)$ 33,630$ 82,475$ 61,015$ (62,318)$ 1,103,221$ 100,435$ (502,206)$ (192,727)$ (8,637)$ (81,334)$ 1,516,073$ 1,070,485$ 10,288$ (1,552)$ 25,520$ (15,079)$ 1,041,028$ 867,221$ 87,518$ 71,810$ 2,748,575$ 1,258,439$ 5,406,120$ 5,406,120$ In addition to the changes outlined here, it has been recommended that $15.7M be invested in application based programs - PCAP and Capacity Building specifically. Given that they are application based, they were not modeled and don’t appear in this analysis. These estimates DO NOT include the proposed $15.7M in application based programs (PCAP and Innovation & Capacity Building). The column furthest to the right excludes mandatory contributions, as these will become a flow through with no impact on municipal budgets. Note that these provincial contributions would still be collected through the property tax base, but shown on the property tax bill as a provincial property tax. Net Financial Impact - Excluding Application Based Programs DRAFT - FOR DISCUSSION PURPOSES ONLY ALL VALUES ARE ESTIMATES AND SUBJECT TO CHANGE Provincial / Municipal Fiscal Review Supporting Material Regional Consultations Fiscal Review Structure and Work Completed to Date •Steering Committee •Deputy Ministers and Municipal Elected Officials •Joint Working Committee and subcommittees •Expenditure Pressures, Roads Costs •Revenue Opportunities •Structure / Governance •Grants •Non-Financial Supports •Current state of municipalities document released •Steering Committee approved recommendations for municipal consultation For Discussion Purposes Only Fiscal Review Process Overview Review of CurrentState of MunicipalitiesReview of CurrentState of Municipalities Review of SupportsProvided toMunicipalities Review of SupportsProvided toMunicipalities Working GroupDevelopsRecommendations Working GroupDevelopsRecommendations Steering CommitteeApprovesRecommendations forConsultation Steering CommitteeApprovesRecommendations forConsultation CURRENTLY Conduct Consultationswith Municipalities andUNSM to GatherFeedback CURRENTLY Conduct Consultationswith Municipalities andUNSM to GatherFeedback Recommendationsand Feedback sent toGovernment forConsideration Recommendationsand Feedback sent toGovernment forConsideration Confidential Draft –For Discussion Purposes Only 3 Fiscal Review Consultation Phase •The recommendations you have received are for consultationpurposes only. As such, they are not approved by governmentand they may not reflect the position of government. •At this point, there are no financial commitments from eitherthe province or municipalities associated with these draftrecommendations. Some of the recommendations do haveprovincial or municipal cost estimates, but government has notapproved any funding for them, and municipalities have notagreed to them. •Once all input is received from municipalities and villages, wewill bring that information back to the UNSM and governmentfor consideration. We ask that municipalities and villagesprovide written submissions by December 15. For Discussion Purposes Only Municipal Structure Recommendations Proposed Structural Review Process Map Time (years)0 3 •Review explores primary issue: viability/structure etc. •Public consultations •Establishes binding outcomes •Affected MUs have 90 days to submit Action Plan to Province to address review recommendations •Province will issue Ministerial Order •FCI Indicators monitored •Static/declining performance (over three-year period triggers review •CAO’s sign off on Tracking, MUs with red flags present to Council, submit explanation/ plan to DMA •After two years of not meeting thresholds, Minister writes letter(s) to affected municipalities’ councils, noting that a review will be triggered if no improvement •Municipal Advisors target municipal units with red flags •FCI monitoring continues •MU implements Action Plan •MU periodically reports to DMA on progress Review identifies unique circumstances beyond the reach of reasonable recommendations –MU leaves cycle for custom public policy process F C I T r a c k i n g Province offers suite of assistance / incentive measures to municipal restructuring (voluntary or otherwise) DMA continues monitoring FCI for all municipalities (MUs) For Discussion Purposes Only Recommendations R1 -The Province will formalize FCI tracking as the tool that will be used to monitor the financial health of municipalities. R2 –The Province, with UNSM and AMA, will develop materials to help ensure that municipalities understand the FCI and have access to best practices to improve their financial health. R3 –The Province will develop a suite of programs designed to assist any municipality that chooses, or is required, to initiate a consolidation process. R4 -After three consecutive years of 6 or more red-flagged FCI indicators, municipalities will be subject to a comprehensive review. R5 –Beginning on March 31, 2015, the FCI tracker will be applied as a trigger for reviews for any municipality that has exceeded 6 or more red-flag trigger threshold for three consecutive years. R6 –Municipalities will be encouraged to voluntarily request a review at any time, for any reason. R7 -In extraordinary circumstances, where it is jointly agreed upon by the UNSM and SNSRM that there is a need, a municipality could be targeted for a review process. R8 -The review will provide all parties with binding outcomes that will identify the conditions necessary for municipal viability. R9 -The reviewed municipality, other affected municipalities and provincial officials will have 90 days to develop an Action Plan to achieve the outcomes identified in the review. R10 -The Province, upon receipt of the Action Plan, will issue a Ministerial Order within 30 days. If the Province does not receive an Action Plan within 90 days, the Province will issue a Ministerial Order. R11 -Municipalities will submit progress reports to the Province periodically once a transition process has begun. FCI tracking will continue. R12 –In the event that a review reveals that the challenges facing a municipality are such that they cannot be addressed through structural changes or a realignment of service standards, OR a municipality implements their Action Plan and improvements are not realized, then a tailored public policy process will be launched. R13 –No new villages will be created and no new powers will be given to villages beyond those that currently exist. R14 –All incorporated villages in Nova Scotia should be phased out. Existing villages should be given the opportunity to apply for town status, merge with an adjacent town, or dissolve into their encompassing rural municipality as they see fit. Municipal Structure Background Information Villages Villages vary significantly in terms of population,capacity,and level of service delivery in Nova Scotia. Historically,village status was a necessary precondition for communities within a rural municipality to raise tax revenue and provide services that rural municipalities were legally unable to provide (e.g.,water and wastewater services). Under the current Municipal Government Act (MGA),rural municipalities now have the same authority to provide services as towns.They can also levy area rates to provide additional services that local residents may request from their council. Villages are not currently required to submit financial reports to the Province with the same level of detail as municipalities.Therefore,it is impossible to apply standards consistent with the structural review process for municipalities,including generating FCI for villages.However,the Committee tried to use the same guiding principles to analyze their circumstances. Democracy -5 villages have not filed financial reports with DMA in 5 years (two of which are officially inactive);2 have not filed in 2 years,and 1 did not file in the previous fiscal year. -Alternatives exist for the local representation some residents may desire without the challenges and costs associated with the current system. •Community Councils (e.g.HRM) •Ratepayer Associations Equity &Fairness;Viability &Capacity -Village residents currently pay for two levels of government:their village government and their municipal government. -On average,village residents pay an additional $78 per household to support the second tier of public administration. -Average portion of a village budget dedicated to public administration is apx. 20%,roughly the same as the average for towns. -By phasing out incorporated villages,the Province should be able to: •Improve service efficiencies by eliminating a second tier of government; •Increase the value for money that village taxpayers receive;and •Trim the property tax burden for village residents. Efficiency &Effectiveness -The jurisdiction afforded to villages is a subset of the jurisdiction that their encompassing municipality occupies. -As a result,village residents have two levels of elected municipal representation,which may have different mandates and priorities. -Can lead to confusing or even degraded lines of accountability (e.g.in situations where different representatives of the same electorate find themselves in contention with one another). If implemented,it is likely that many villages would be drawn into the municipal viability reviews that will result from the other recommendations contained in this report. Municipalities Overall literature review findings: -Research conducted on cohesion,capacity,efficiency,and representation. -No clear consensus on the optimal size of a municipality. -Difficult to isolate structural effects from other variables such as fiscal,socio- economic,and political variables. -Impact of amalgamation on cost savings (at least in the short term)mixed due to effects of harmonization,transition costs,etc.May see savings materialize in long term. -Economies of scale can be achieved for some services,but not necessarily all. •Evidence for capital-intensive services (i.e.water,sewage,transportation, financial services like billing and payables). •Less so for labour-intensive services (i.e.policing). •Population density and level of service are also important factors. •Diseconomies of scale are possible when municipalities become too large. -Several non-financial benefits to structure reform •Reduced duplication •Improved administrative capacity •Reduced inter-municipal competition for scarce resources -Concerns about potential loss of identity,less accessibility of political officials,and less voice for communities are voiced by some scholars. •However,many factors influence how much citizens participate in their local government. Overall jurisdiction scan findings: -Looked at amalgamation in Canada since 1990. -Emphasis on structural reform in Ontario and Quebec and to a lesser extent in Nova Scotia,New Brunswick and PEI during this period. -More regional cooperation approaches in Western Canada and British Columbia. •Leads to focus on governance over government,process (strategic planning, resolving conflict,building consensus)over structure. •Manitoba’s Municipal Modernization Act (2013)is a major new development. -Overall,many two-tiered systems eliminated in Canada. Guiding Principles Democracy Recommendations should uphold transparent,accountable,accessible, and representative municipal government. Equity &Fairness Recommendations should support a reasonably comparable standard of public services across Nova Scotia municipalities at reasonably comparable levels of taxation,and support a system where citizens receive best value and are taxed according to the services they have access to. Viability &Capacity Recommendations should ensure that municipalities have sustainable resources to support their long-term viability.This includes,but is not limited to,access to revenue,an appropriate level of tax burden,the ability to provide core services and the ability to maintain sufficient human resources. Efficiency &Effectiveness Recommendations from this review should encourage efficient and effective decision-making. Non-Financial Support Recommendations Approved Recommendations R36 -The Province,the AMANS and the UNSM should work together to develop a Provincial/Municipal Strategic plan to determine the priority areas for cooperative initiatives (i.e.Towns Task Force implementation,MGA Review,Elections Act Review,etc…). R37 -The Province and municipalities should establish a staff level roundtable to discuss municipal issues and to provide an ongoing venue for continuous dialogue and collaboration.This roundtable should encourage two way communication around issues that impact the province and municipalities R38 -The Province,the AMANS and the UNSM should develop a province-wide strategy for addressing Asset Management in Nova Scotia.A key part of this strategy would include an inventory of assets throughout the province to identify the highest priorities for investment.This should be identified as a priority in the Provincial/Municipal Strategic Plan and should build on the Asset Management Program currently being developed by HRM. R39 -The AMA,UNSM and Municipal Affairs staff should continue to collaborate on education and training through the AMANS Education Committee.This committee should complete,implement,and continuously evaluate the recommendations in the current Education and Training Strategy for Municipal Employees and Elected Officials and should also continue to publish a joint training calendar. R40 -The Province should explore opportunities for staff secondments to help with municipal resource issues and succession planning. R41 -Municipal Affairs should undertake an organizational review to determine if the existing structure best meets the needs of both the department and municipal partners.In particular,the role,area of expertise and structure of the Municipal Advisors service should be reviewed. R42 -Municipal Affairs should provide an organizational chart,including roles and contact information,for all DMA staff for use by municipalities. R43 -Municipal Affairs should develop new processes for developing and sharing information with municipalities.Based on priority areas identified through the provincial/municipal strategic plan,the department should work with municipalities to produce and share best practices materials,policies,data analysis,etc.Municipal Affairs should identify methods for sharing the analysis and findings from the data municipalities provide to the division through a system,such as a data portal.Municipal Affairs should also develop a more user friendly financial reporting system to improve and expedite the financial reporting process. Confidential Draft –For Discussion Purposes Only Estimated Debt Servicing Costs to Finance 1/3 of Wastewater Requirements Even at 1/3 cost sharing, some Towns will have debt loads in excess of 15% of revenue. This threshold is used by the Municipal Finance Corporation when considering new borrowing requests. Even at 1/3 cost sharing, some Towns will have debt loads in excess of 15% of revenue. This threshold is used by the Municipal Finance Corporation when considering new borrowing requests. Cost Pressures From Wastewater Regulations 0% 15% 30% Regionals and Towns debt service for WW 11/12 debt service11/12 debt service (regionals)debt service for WW (regionals) 0.0% 15.0% 30.0%Rural Municipalities debt service for WW 11/12 debt service For Discussion Purposes Only Recommendations R30 -Stakeholder involvement must occur early in the process of regulations development and must involve both economic and fiscal analyses of the proposed changes so that the regulatory decisions are made with a full understanding of implementation issues; a fully informed process that engages municipalities will likely result in greater compliance with, and more cost effective regulations. R31 -New regulations should always have clear and measurable outcomes,they should include sun-setting provisions, and they should be regularly reviewed for efficiency and effectiveness. R32 -Departments working on new regulations for municipalities must engage with the Department of Municipal Affairs to determine the total cumulative impact of all provincially and federally imposed municipal regulations. To support this work, the Department of Municipal Affairs will collect, on an annual basis, the economic and fiscal analyses conducted for all proposed and existing major regulations imposed on municipalities. R33 -Several existing regulations, specifically, the solid waste diversion and CCME wastewater regulations should be set aside until a full economic and fiscal analysis can be completed. R34 -Subsequently, and going forward, any new regulations should not move forward unless municipal/provincial/federal governments have agreement on how they will be funded. R35 -Alternative service delivery mechanisms, including shared service models,must be considered by municipalities and the province as a means to improve efficiencies wherever possible. Regulatory Pressures Estimate ($Millions) CCME Waste Water Standards $601 Waste Water Collection Systems (resulting from CCME) $265 Drinking Water $17 LED Street Lighting $90 TOTAL COSTS $973 Million Expenditure Recommendations Quantified regulatory expenditure pressures could increase existing municipal debt loads between 59% and 177% depending on cost-sharing arrangements Quantified regulatory expenditure pressures could increase existing municipal debt loads between 59% and 177% depending on cost-sharing arrangements Un-quantified Regulatory Pressures Estimated Cost 2012 Drinking water standards $ ?? Solid Waste Management $ ?? Disposal of Surplus Schools $ ?? Climate Change Adaptation $ ?? Fire Services Review $ ?? Work within Highway Right-of- Way permit and deposit $ ?? TOTAL COSTS UNKNOWN 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Debt Mi l l i o n s Quantified Regulatory Expenditure Pressures and Current Municipal Debt, 2013 Additional new debt with no identified cost-sharing New Debt with 1/3 cost-sharing Current Debt Confidential Draft –For Discussion Purposes Only Roads Recommendations 251 Km 23% 827 Km 77% Arterial & Collectors Roads Local Roads Breakdown of Road Classification in Towns Department of Transportation and Infrastructure Renewal (NSTIR) maintains the bulk of roads, but Regionals and Towns are responsible for more than Rurals Department of Transportation and Infrastructure Renewal (NSTIR) maintains the bulk of roads, but Regionals and Towns are responsible for more than Rurals In addition, towns are responsible for maintaining 251 km of provincial arterial and collector roads within their boundaries In addition, towns are responsible for maintaining 251 km of provincial arterial and collector roads within their boundaries Regionals and Towns spend much more than Rurals on maintaining roads Regionals and Towns spend much more than Rurals on maintaining roads 14,291 ,77% 745 ,4% 138 ,1%2624,14% 827,4% Breakdown of responsibility for local roads in NS TIR Local Roads Rural roads - service exchange (subsidized cost) Rural roads - full cost maintenance Regionals Towns Region Kilometers of Local Road Total Service & Maintenance Cost per km NSTIR 14,291 $6,700 HRM and CBRM 2,623 $13,450 Towns 827 $15,913 Rurals 138 $18,910 Rurals –Service Exchange 745 $4,930 For Discussion Purposes Only Recommendation R15 -Rural municipalities will now be required to pay TIR the full maintenance recovery cost (approx. $6700 per kilometer plus annual CPI increase) for maintenance of the 745 km of local roads maintained under the Service Exchange agreement. If rural municipalities so choose, TIR will also service (at cost + capital –approx. $13,500 per kilometer plus CPI) the 138 km of roads that rural municipalities are currently fully responsible for. In addition, the Province will engage in an education campaign to ensure that all municipalities understand the policies and practices that TIR has in place to trade-off roads maintenance responsibilities or ownership where possible so as to ensure that maximum efficiency. R23 -The Province will provide a provincial grant for arterial and collector roads (once a comprehensive inventory is developed).The grant will be allocated at a rate of $9,000 per kilometer of arterial and collector roads within a municipality’s boundaries (this is approximately the difference between the average maintenance costs that towns pay for roads and TIR’s cost). 50 % 111 %$290,000 0% 20% 40% 60% 80% 100% 120% Equ's Approx. Tax Bill Household Income Equ Grant Average Tax Bill, Median Household Income, and Equalization Grants Town B Town A Grant Recommendations –Equalization Explanation: Town A and Town B are of similar of size. 1. Based on the Program’s inputs, Equalization assumes that Town B should have half the tax bill of Town A. 2. This, in spite of the fact that Town B residents earn 11% more than Town A residents. 3. The Equalization formula awards Town B a $290,000 grant, and Town A gets nothing. Conclusion:The current program may not necessarily be directing funds to municipalities with the greatest need. Explanation: Town A and Town B are of similar of size. 1. Based on the Program’s inputs, Equalization assumes that Town B should have half the tax bill of Town A. 2. This, in spite of the fact that Town B residents earn 11% more than Town A residents. 3. The Equalization formula awards Town B a $290,000 grant, and Town A gets nothing. Conclusion:The current program may not necessarily be directing funds to municipalities with the greatest need. 1 2 3 For Discussion Purposes Only 0% 10% 20% 30% 40% 50% 60% 70% 80% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Equalization Funding Ratio -Grant Value as a % of Calculated Need $0 $5 $10 $15 $20 $25 $30 $35 2008 2009 2010 2011 2012 2013 2014 Mi l l i o n s Breakdown of Equalization Source Funding NSPI Contribution NS Government Contribution Approximately 2/3 of the equalization grant is funded through the Nova Scotia Power (NSPI) payment Approximately 2/3 of the equalization grant is funded through the Nova Scotia Power (NSPI) payment The proportion of the calculated need being funded by equalization is diminishing The proportion of the calculated need being funded by equalization is diminishing $1,236,618 $781,945 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 Separate Units Single Unit Equalization Scenario for a Town and Rural Municipality (2013/14 ) Springhill's Equalization Town Foundation Grant Cumberland's Equalization Loss of -$454,670 Recommendations R16 -The group recognizes that the fundamental purpose of equalization still stands.However,there are identified issues with the equalization grant in its current form.Specifically,it discourages restructuring and does not always allocate funds to municipalities with the greatest need,as identified by other financial measures. As such,it is recommended that the equalization program be frozen at the 2014 levels to allow time for an alternative equalization grant to be developed based on improved data (such as reliable density measures to address the restructuring issue and household income figures to support an ability-to-pay-measure in the program). As well,consideration should be given to the standard service levels used to determine the municipal need.The improved operating grant,to start in 2018,will better addresses the needs of municipalities,and encourages the outcomes necessary for ensuring Nova Scotia’s municipalities remain viable.Similarly,the Towns Foundation Grant would be frozen at its current distribution,regardless of structural change,and then be re-examined as part of the improved operating grant structure. Grant Recommendations –Equalization Current equalization grant creates a disincentive to structural changeCurrent equalization grant creates a disincentive to structural change R17 -Noting concerns over CBRM's viability,and noting that many options for improved viability available to most of the other municipalities in Nova Scotia (such as shared servicing, structural changes,etc.)are not realistic options for CBRM,it is recommended that the municipality and the Province conduct an immediate joint review to assess the viability issues facing CBRM.This review will make recommendations on how to best address the specific issues facing CBRM,including recommendations on appropriate provincial grants for the municipality. R18 -During the freeze period,the $30 million funded through equalization will be funded by the province. For Discussion Purposes Only R19 recommends removing the $20.1 M of Nova Scotia Power (NSPI)payments currently going to Equalization (shown in green),and replacing those funds with new Provincial revenue R19 recommends removing the $20.1 M of Nova Scotia Power (NSPI)payments currently going to Equalization (shown in green),and replacing those funds with new Provincial revenue $6.0 $11.6$20.1 Current allocation of $37.7 M NSPI Payment (figures in Millions) HST Offset NSPI GIL Contribution to Equalization $22.0 $14.2 $1.5 Proposed allocation of $37.7 M NSPI Payment (figures in Millions) NSPI GIL Invest in PCAP/Other Capital ProgramInnovation/ Capacity Grant Recommendations R19 -The NSPI Grant should be calculated based on rate times assessment for host municipalities, where one standard rate is determined for the entire Province. This recommendation will not impact the payment that NSPI makes to the Province. Indeed, NSPI will continue to make payments as per existing legislation, this recommendation only impacts how those monies are allocated among municipalities. Additionally, at no time will the value of this grant exceed the value of the Payment in Lieu of Taxes (PILT) that NSPI makes to the Province. R20 -The Province will eliminate the HST offset program,as there is no sound policy rational for the program. R21 -The Province will create a program/suite of programs dedicated to promoting innovation and capacity building activities for municipalities, including the comprehensive municipal reviews recommended by this committee.To fund these activities,the Province should allocate $1.5 million from the NSPI PILT to the $250,000 that is currently budgeted for municipal capacity building programs. R22 -PCAP should be expanded by $14.2 Million –the remaining NSPI PILT monies –and the PCAP program should be broadened to include roads and other capital projects deemed critical by municipalities.It is intended that in the initial years of this program expansion,some monies should be used to develop an Asset Management Program for all municipalities outside the HRM. (HRM is exempt because they have already invested in developing their own) Grant Recommendations For Discussion Purposes Only Changes in Grants Summary -All figures are in millions Grant/Program 2013/14 Value Proposed Value Change Nova Scotia Power (NSPI) Grant In Lieu (GIL)$11.6 $22 $10.4 NSPI Payment - Contribution to Equalization $20.1 $0 -$20.1 HST Offset $6 $0 -$6 Arterials and Collectors Grant $0 $1 $1 Provincial Capital Assistance Program $3.75 $17.95 $14.2 Innovation/Capacity Grant $0.25 $1.75 $1.5 Provincial Funding for Equalization $10.4 $30.5 $20.1 SUM $52.1 $73.2 $21.1 Grant Recommendations $3.7 $2.3 -$0.6 $5.4 $14.2 $1.5 -$5 $0 $5 $10 $15 $20 $25 Regionals Towns Rurals Total Mi l l i o n s Proposed Net Change in Grants to Municipalities (Excluding Proposed Capital Program) Innovation/ Capacity Grant Provincial Capital Assistance Program (PCAP) Net Change to NSPI GIL, HST Offset, Arterials & Collectors Grant Proposed capital program and innovation fund would be application based. Proposed capital program and innovation fund would be application based. Proposed New Spending From Provincial Government (Budget Ask)-$21.1 Million Proposed New Spending From Provincial Government (Budget Ask)-$21.1 Million For Discussion Purposes Only Revenue Recommendations 1.77 2.34 2.02 2.02 2.86 3.26 2.61 2.47 2.02 2.67 2.81 $1,503 $1,821 $1,725 $1,621 $2,611 $3,479 $2,331 $2,412 $2,462 $2,531 $2,833 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 0.0 % 0.5 % 1.0 % 1.5 % 2.0 % 2.5 % 3.0 % 3.5 % NL PE NS NB PQ ON MB SK AB BC CA Per dwelling property taxes (right hand axis) and property taxes relative to household total income (left hand axis),2012. Property taxes relative to household income Property taxes per dwelling 0.6%2.4%4.2%5.4%6.3%6.8%7.1%7.3%8.1%8.7%9.6%10.6% 13.4% 8.2%6.0% 5.8%4.7%4.5%4.2%4.1%4.2%4.0%3.7%3.4%3.4%2.8% 2.4% 3.30% 2.70%2.20%2.10%1.70%2.10%1.60%1.80%1.40%1.20%1.00%0.90%0.70% 0.40% 2.6% 2.9%3.2%2.2%2.0%1.9%2.1%2.0%1.7%1.8%1.6%1.9%1.5% 1.7% 0% 3% 6% 9% 12% 15% 18% Ta x e s a s a p e r c e n t o f to t a l ho u s e h o l d i n c o m e Provincial and Municipal Taxes Relative to Household Income.Nova Scotia,2012 Fees Property (Muni.)Excise Sales Income Both in relative and absolute terms, residential property taxes in Nova Scotia are below the national average Both in relative and absolute terms, residential property taxes in Nova Scotia are below the national average Source:Social Policy Simulation database Model, Nova Scotia Department of Finance calculations Total Provincial and Municipal taxes are distributed equally by household incomeTotal Provincial and Municipal taxes are distributed equally by household income For Discussion Purposes Only Percentage change in both residential property taxes paid and municipal budgets, under complete replacement of residential property tax with income surtax, 2013. 0% 5% 10% 15% 20% 25% 30% Ma r g i n a l t a x r a t e Taxable income Provincial Income Tax Rates. Canada, 2013. NFLD PEI NB QC ON MB SK AB BC NS Revenue Recommendations Provincial income tax rates would need to increase by 28.7% to completely replace residential property tax Provincial income tax rates would need to increase by 28.7% to completely replace residential property tax A province-wide set of municipal income tax rates would cause a significant redistribution among municipalities A province-wide set of municipal income tax rates would cause a significant redistribution among municipalities NS with a 28.7% rate increase For Discussion Purposes Only Recommendations R24 -Although the shortcomings of the current system must be acknowledged,property taxes should continue to be the primary source of revenue for municipalities. R25 -The Province should amend legislation to provide greater municipal autonomy over property taxation of forest and recreational property. R26 -A full review of the exempt agricultural properties should be conducted to determine if the benefit of the tax reduction is going to those who are actively farming. R27 -The province and its municipal partners review the finance powers provided in the Municipal Government Act and the Halifax Regional Municipality Charter to provide municipalities with broader authority to establish fair and effective property taxation and revenue regimes. R28 -Special tax legislation that restricts property taxation or revenue will be reviewed to determine appropriateness. Evaluation Grid of Primary Revenue Options Property Tax Income Tax Corporate Income Tax Sales Tax Vertical Equity  Horizontal Equity  Economic Efficiency  Accountability  Adequacy & Elasticity  Stability  Administrative Burden  -meets criteria -fails to meet criteria -meets criteria in some ways, but fails in others Recommendations R24 -Although the shortcomings of the current system must be acknowledged,property taxes should continue to be the primary source of revenue for municipalities. R25 -The Province should amend legislation to provide greater municipal autonomy over property taxation of forest and recreational property. R26 -A full review of the exempt agricultural properties should be conducted to determine if the benefit of the tax reduction is going to those who are actively farming. R27 -The province and its municipal partners review the finance powers provided in the Municipal Government Act and the Halifax Regional Municipality Charter to provide municipalities with broader authority to establish fair and effective property taxation and revenue regimes. R28 -Special tax legislation that restricts property taxation or revenue will be reviewed to determine appropriateness. Revenue Recommendations Property taxes offer greater accountability, autonomy, elasticity, stability and less economic distortion than other potential sources of revenue Property taxes offer greater accountability, autonomy, elasticity, stability and less economic distortion than other potential sources of revenue Forest property tax rates have remained unchanged since the 1970s, at 25¢ per acre for resource and 40¢ per acre for commercial properties Forest property tax rates have remained unchanged since the 1970s, at 25¢ per acre for resource and 40¢ per acre for commercial properties $3.1M $3.5M $5.5M $22.9M $0 $5 $10 $15 $20 $25 $30 Current rates 25% of the residential rate If current rates had been adjusted for CPI from 1980 If forests were treated like farm land ($2.90 per acre grant in lieu) Revenue from Forest Property Scenarios Forest Property Revenue Additional Revenue For Discussion Purposes Only Estimated Change in Municipal Contributions under Proposed Provincial Property Tax Rate for Education, Corrections and Housing ,2014. CBRM -$1.7M HRM +$4.6M Towns -$1.2 M Rurals (inc.Queens)-$1.7M Total 0 Recommendation R29 -The Province should introduce a Provincial Property Tax Rate,which will be applied to all taxable property in Nova Scotia.The intended goal of this tax is to replace the current system of municipal contributions to education, corrections and housing,while increasing the transparency of the current tax system. Revenue Recommendations The proposed Provincial Property Tax Rate would increase transparency and result in changes to mandatory contributions The proposed Provincial Property Tax Rate would increase transparency and result in changes to mandatory contributions Halifax currently displays a separate provincial rate on their tax bills Halifax currently displays a separate provincial rate on their tax bills Net Flow of Transfers Between Provincial and Municipal Governments, 2012/13 Confidential Draft –For Discussion Purposes Only Kaizer Meadow Wind Project Report on Turbine Performance Minas Energy 11/21/2014 Executive Summary The Kaizer Meadow Wind Project was officially commissioned on March 1st, 2014 but has been producing energy since January, 2014. This report discusses the performance of the project using data collected from the turbine. Two operations reports are included as appendices for reference. One of the reports is from January 12th – October 31st, 2014 which has logged the turbine’s performance since the date it was handed over to Chester. The second report is from April 1st, 2014 to October 31st which represents the turbine’s performance in this fiscal year. This report discusses each section in the operations reports and helps to explain the underlying factors which attribute to the turbine’s performance. As of October 31st the turbine has produced 2,824,118 kWh, 2,349,449 kWh of which within this fiscal year. In any given calendar year the turbine is expected to produce 5,500,000 kWh. The turbine has 5 more months to meet its expected annual production target before the end of the fiscal year. Wind production is predicted to be highest between October and April. Chester has received a total of $304,536 for power produced from April 1st, 2014 to October 31st, 2014. The predicted revenue for this period is $367,816 meaning that Chester is short $63,280 from what was predicted. This revenue does not yet include compensation from Enercon which will likely be in the order of $20,000-$50,000 depending on the availability achieved for the rest of the fiscal year. Enercon’s power curve is in compliance with its contract. How this is determined is further explained in this report. The report also highlights the main sources of downtime during the operations period. Enercon’s availability is currently below its 95% guarantee. Depending on the technical availability achieved from now until March 31st, it is expected that some compensation will be due to Chester. It is recommended that a call-out box is installed at the turbine so that notifications of power outages can be received by text message. It is also recommended that further discussions be held with NSPI to ensure that voltages remain within acceptable limits. Contents Executive Summary ....................................................................................................................................... 1 Introduction .................................................................................................................................................. 3 Overview ....................................................................................................................................................... 3 Wind and Yield .............................................................................................................................................. 4 Power Curve .................................................................................................................................................. 6 Availability ..................................................................................................................................................... 8 Recommendations ...................................................................................................................................... 10 Introduction The Kaizer Meadow Wind Project is a single 2 MW wind turbine project located proximate to the Kaizer Meadow Landfill in the Municipality of the District of Chester. Chester took ownership of the project on January 12th, 2014 and the project achieved commercial operation on March 1st, 2014. This report will help explain the turbine’s performance to date, including Enercon’s contractual obligations with relation to turbine performance. Two operations reports are included in appendix A and B; one of these is the turbine’s operations since January, 2014 and the other is the performance since April, 2014 to match the fiscal year of the Municipality. This paper is intended to lead the reader through the operating reports to help interpret the data presented. Overview Operations reports can be produced at any time through Enercon’s Service Information Portal (SIP). The SIP can be accessed through Enercon’s website. Chester has its own username and password for the SIP. The turbine’s SCADA system can be accessed at any time from the Kaizer Meadow landfill office to view live information from the turbine. The project has produced at total of 2,824,118 kWh as of October 31st, 2014. Figure 1 gives the turbine’s performance overview since April 1st, 2014 which is the beginning of Chester’s fiscal year. The turbine’s total yield between April 1st and October 31st, 2014 is 2,349,449 kWh. This production has a total estimated value of $307,777 given the power purchase rate of 13.1 cents per kWh. The value does not include grid related losses which are typically in the order of 1%. The target annual production for the project is 5,500,000 kWh per annum which the project has 5 more months to achieve in this financial year. Figure 1: Overview of Turbine Performance Operating hours in figure 1 above is simply the number of operating hours since April 1st, 2014. Average wind speed is measured by the anemometer on top of the turbine. Wind measurements are only recorded when the turbine is operational. Power output varies according to the wind speed therefore average power output is the average output over the time period in consideration. Kaizer Meadow’s average power output has been 483kW. As figure 1 suggests there have been 36 maintenance actions since April 1st only 2 of which are considered to be scheduled maintenance. Wind and Yield Figure 2 is an overview of the monthly average and maximum wind speeds (m/s) and power output. It is important to note that each month has its own story which helps explain the results. This table is a good starting point in viewing the patterns between average wind speed, operating hours and energy yield. It is important to note that although the data is useful it is not perfect. For instance, there was a prolonged period of downtime in July due to a power outage caused by Post-Tropical Storm Arthur. As a result the wind speed during the storm was not recorded due to the power failure. Regardless, the table demonstrates the drop in production during summer months due to the change in the wind resource. Figure 2: Energy Yield Figure 3 shows the expected turbine output by month along with the amount of power actually produced at Kaizer Meadow. Overall, the turbine has produced 82.5% of the power it was expected to produce as of October 31st, 2014. Figure 3: Predicted Versus Actual Production (kWh) Figure 4 shows predicted revenue by month compared with what has actually been received by Chester. Chester has received a total of $304,536 for power produced from April 1st, 2014 to October 31st, 2014. The predicted revenue for the same period is $367,816 meaning that Chester is short $63,280 from what was predicted. Revenue does not yet include compensation from Enercon which will likely be in the order of $20,000-$50,000 depending on availability for the rest of the year. 0 100000 200000 300000 400000 500000 600000 700000 Predicted Production (kWh) Actual Production (kWh) Figure 4: Predicted Revenue Versus Actual Revenue Power Curve The power curve is the manufacturer specified power production for a given wind speed. Enercon has provided a warranty for the power curve for a 2 year period. The power curve is calculated on a monthly basis. All monthly power curves are provided in Appendix A. Overall the power curve has been in compliance with what Enercon has specified. Figure 5 shows the most recent power curve for October, 2014. Note that the majority of the data points are to the left of the curve which indicates that the turbine produces more power per given wind speed than what was warranted. $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 Predicted Revenue Actual Revenue Figure 5: October, 2014 Power Curve In May, 2014 there was an instance where the turbine had an incorrect setting and was capped at 50 kW for a period of time. Enercon have been asked to include this lost production into their annual availability calculation. Figure 6 shows the associated power curve for May, 2014. Figure 6: May, 2014 Power Curve Most Data Points to Left of Curve (In Compliance) Production Unnecessarily Capped at 50 kW in May, 2014 Availability In simple terms availability is the amount of time that the turbine is available to produce electricity. The definition of availability in the contract with Enercon is more complex because Enercon does not want to be liable for downtime that is beyond their control (e.g. NSP power outage). The full definition of availability is located in appendix C for reference. Enercon divides time into 6 categories of time codes. Table 2 gives a brief explanation of each category. Table 1: Explanation of Time Codes Category Explanation T1 Turbine in operation or ready for operation T2 Total Time Counted (Time Since Data Acquisition) T3 Grid not available (NSP Downtime) T4 Turbine not available at the instigation of the customer T5 SCADA not available (NSP and Eastlink related downtime) T6 Not ready for operation (Enercon related downtime) It should be noted that time attributed to a power outage is calculated as time under T3 and T5. This is time where there is a power outage or the recloser has tripped at the site. Figure 5 shows how grid related downtime has changed over time (T3 and T5). For the most part grid related downtime has been reducing. In January and February NSPI and Enercon were troubleshooting the system and extensive downtime was experienced. From April to June grid related downtime was greatly reduced. In July post-tropical storm Arthur created a long stretch of NSP related downtime. August saw limited grid downtime however September and October both had temporary grid failures which totaled approximately 48 hours per month. Note that time is expressed in the table below in seconds. Figure 5: Availability and Associated Time Categories Enercon related downtime (T6) has varied throughout the time period. Warranted availability for the first 2 years of operations is 95% and 97% from years 3-15. Figure 5 shows that the turbine is below the warranted availability at 87.39%. The reasons for Enercon related downtime are numerous, however most significantly the overvoltage protection parameters were adjusted recently been which has led to the drastic increase in Enercon’s technical availability for October (99.10%). Table 2 below highlights the significant causes of downtime per month starting in April. Table 2: Primary Sources of Downtime by Month Month Downtime Incident Production Lost Party Responsible Action Taken April Maintenance 18:43:14 Enercon N/A May Feeding Fault 28:50:00 Enercon Fixed May Lack of Wind 18:49:14 NSPI/Chester N/A May Maintenance 15:08:44 Enercon N/A May Feeding Fault 28:00:00+ Enercon Fixed June Maintenance 12:19:41 Enercon N/A June Inverter Bus Error 29:00:00+ Enercon Fixed July Pitch Control Error 22:06:44 Enercon Fixed July Lost Grid 154:07:52 NSPI/Chester Power restored July Monitoring Switch 84:17:27 Enercon Fixed August Maintenance 35:49:16 Enercon N/A September Maintenance 40:39:18 Enercon N/A September Pitch Control Error 53:43:24 Enercon Fixed September Mains Failure 48:00:00+ NSPI/Chester Working with NSPI to improve voltage October Lost Grid 49:41:10 NSPI/Chester Power Restored It is important to note that the voltage at the site has presented challenges to both Enercon and NSPI. Upon commissioning, Enercon had an overvoltage protection setting that was not correct. The setting was responsible for much of the Enercon related downtime and extended periods of troubleshooting. On September 12th the setting was corrected. The correction meant that when voltage is too high for the turbine to deal with it shuts itself down. This resulted in the” Mains Failure” status messages that occurred in September resulting in 48 hours of downtime. In October voltage conditions improved and related downtime from this issue were improved. Discussions have been ongoing with NSPI and Enercon to ensure voltage conditions are improved at the site permanently. If NSPI are unable to provide a lasting solution, Enercon can provide a voltage control option at a cost yet to be determined. As Chester is responsible for any downtime related to NSPI’s grid, it is recommended that a call-out box be installed at the site. The call-out box could send a text message when the turbine loses power. Compensation for Enercon related downtime will be due in April, 2015 for the 15 previous months. Chester signed an agreement extending the first operational year so that every subsequent year would match the Municipality’s financial year. Estimated compensation in April depends on the availability figures for the remainder of the operational year. Compensation will be expressed as a credit on the next year’s operations and maintenance invoice from Enercon. As an example, Enercon has supplied a sample availability calculation (Appendix D) assuming that the turbine’s availability has improved to 93% by the end of the operational period. Under such a scenario Chester would be owed $26,944 in April. This value could be more or less depending on the actual results as of March 31st, 2015. Recommendations In order to limit downtime for the Kaizer Meadow Wind turbine there are 2 recommendations that should be implemented. 1) Reduce downtime from power outages The problem with fixing power outages is that Enercon often do not notify Chester when an outage has occurred and unfortunately it is not their responsibility to do so. If the power is out at the turbine the SCADA system no longer works. If municipal staff want to check if there is a power failure then logging into SCADA is one way to find out. Another option is to have a call out box located at the turbine that sends a text message when the turbine loses power. The estimated cost of a call-out box is $625 plus delivery and installation 2) Improve grid voltage Discussions on grid voltage with NSPI are ongoing. Grid voltage was an issue in September but the grid since then has been stable. This could be because there is more load that has come onto the grid as electricity demand increases in the cooler months. Operating report WEC 825722 01/01/2014 - 31/10/2014 Table of contents 1 Overview 2 Yield & wind 3 WEC performance & wind 4 Availability analysis 5 Operating states 6 Service & Maintenance Table of contents Generated on 07/11/2014 3:07:57 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Category Value Total yield 2,824,118 kWh Operating hours 5,013 h Average wind speed 6.2 m/s Average power output 425 kW Number of maintenance actions 2 Number of other Service actions 48 Overview Serial number Plant type Nominal power: Commissioning Analysis time period: Diagram: Total yield in reporting period compared to previous year 825722 E-82 E2 2000 kW 12/01/2014 01/01/2014 - 31/10/2014 Overview 01/01/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:07:57 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 1 of 19 Analysis of monthly yield, wind and power based on ENERCON SCADA data Yield & wind Diagram: Monthly yield compared to previous year Diagram: Monthly average wind speed in reporting period compared to previous year Plant 825722 Wind [m/s]Power [kW]Operating hours [h]energy yield [kWh] Ø max.Ø max.Previous year January 2014 5.8 31.6 93 804 134 45,518 0 February 2014 5.8 20.8 182 2,052 116 62,000 0 March 2014 7.0 36.3 598 2,176 505 367,151 0 April 2014 7.5 28.9 643 2,153 643 462,230 0 May 2014 5.4 20.8 302 2,140 655 219,954 0 June 2014 5.9 25.1 470 2,310 641 333,359 0 July 2014 5.9 37.5 411 2,150 465 239,458 0 August 2014 5.6 23.0 408 2,125 659 298,631 0 September 2014 6.3 30.2 399 2,119 517 281,464 0 October 2014 7.2 32.3 745 2,180 678 514,353 0 6,2 28.7 425 2,021 5,013 2,824,118 0 Yield & wind 01/01/2014 - 31/10/2014 825722 All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Generated on 07/11/2014 3:07:57 PM by the user S00000000430 from ENERCON Service Info Portal Page 2 of 19 WEC performance & wind Power curve: Actual data compared to calculated power curve on standard air density Wind distribution: Analysis of nacelle position based on 10-minute values January 2014 0 5 10 15 20 25 m/s 0 1 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 Not enough data Not enough data February 2014 0 5 10 15 20 25 m/s 0 1 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 Not enough data Not enough data March 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 60 80 100 120 140 160 01/01/2014 - 31/10/2014 WEC performance & wind 825722 Generated on 07/11/2014 3:07:58 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 3 of 19 April 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 60 80 May 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 60 June 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 01/01/2014 - 31/10/2014 WEC performance & wind 825722 Generated on 07/11/2014 3:07:58 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 4 of 19 July 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 August 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 60 80 September 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 60 80 01/01/2014 - 31/10/2014 WEC performance & wind 825722 Generated on 07/11/2014 3:07:58 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 5 of 19 October 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 60 01/01/2014 - 31/10/2014 WEC performance & wind 825722 Generated on 07/11/2014 3:07:58 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 6 of 19 Plant 825722 Time category [hh:mm:ss]Availability Time T1 T2 T3 T4 T5 T6 Prev. year January 2014 348437 1508605 821 0 610039 549308 38.81 %0.00 % February 2014 462866 2419102 102571 0 1172978 680687 40.48 %0.00 % March 2014 2117504 2674577 997 0 442050 114026 94.89 %0.00 % April 2014 2504031 2591906 2373 0 3711 81791 96.84 %0.00 % May 2014 2513373 2678338 1848 0 0 163117 93.91 %0.00 % June 2014 2436323 2591896 1094 0 2184 152295 94.12 %0.00 % July 2014 1715823 2678326 508 0 554861 407134 80.82 %0.00 % August 2014 2510848 2678228 612 0 3333 163435 93.89 %0.00 % September 2014 1981637 2591775 177697 0 14844 417597 82.59 %0.00 % October 2014 2475530 2678257 1304 0 178857 22566 99.10 %0.00 % 5296:12:52 6969:43:30 80:30:25 00:00:00 828:34:17 764:25:56 87.39 %NaN Availability analysis Monthly technical availability (without maintenance factor into account) as well as time category key based on SCADA data. Diagram: Display of technical availability compared to previous year Availability analysis 01/01/2014 - 31/10/2014 825722 All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Generated on 07/11/2014 3:08:55 PM by the user S00000000430 from ENERCON Service Info Portal Page 7 of 19 Operating states Display of status messages generated by the wind energy converter including time category, number and total duration of the respective operating status Number and duration of status messages - total: Main status Sub status Time catego ry Status text Num ber Duration January 2014 0 0 T1 Turbine in operation Turbine in operation 13 83:12:37 0 1 T1 Turbine starting Turbine starting 21 00:29:30 0 2 T1 Turbine operational Turbine operational 20 00:23:54 0 5 T1 Calibration of load control Calibration of load control 1 00:00:38 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 1 01:00:00 2 1 T1 Lack of wind Wind speed to low 9 06:08:23 8 0 T6 Maintenance 6 07:44:59 9 4 T1 Generator heating Hygrostat rectifier 1 00:05:27 15 111 T1 Turbine moist Rectifier 2 00:00:03 60 2 T3 Mains failure Start delay 9 00:11:39 60 17 T3 Mains failure Underfrequency 1 00:02:41 60 28 T3 Mains failure Overfrequency (restart)2 00:00:00 80 20 T6 Excitation error Charging error 18 17:01:32 80 30 T6 Excitation error Undervoltage DC-link 1 00:00:20 90 10 T6 Prot. circuit-breaker- tripped Power supply excitation 2 127:56:25 222 1 T6 Turbine reset Power failure 3 00:00:00 222 2 T6 Turbine reset Quit button 1 00:00:02 222 3 T6 Turbine reset Scada system 1 00:00:01 240 0 T5 Remote control PC switched on 11 00:16:08 240 1 T5 Remote control PC switched off 10 167:22:41 240 246 T5 Remote control PC Timeout receivebuffer 2 02:00:51 Operating states 01/01/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:08:55 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 8 of 19 Main status Sub status Time catego ry Status text Num ber Duration February 2014 0 0 T1 Turbine in operation Turbine in operation 137 115:32:43 0 1 T1 Turbine starting Turbine starting 144 02:29:34 0 2 T1 Turbine operational Turbine operational 135 05:02:15 0 5 T1 Calibration of load control Calibration of load control 8 00:12:34 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 10 01:50:16 1 1 T1 Turbine stopped Control cabinet 1 00:03:34 2 1 T1 Lack of wind Wind speed to low 2 01:22:31 8 0 T6 Maintenance 12 12:01:29 9 3 T1 Generator heating Hygrostat inverter 1 00:44:23 9 4 T1 Generator heating Hygrostat rectifier 1 01:17:20 48 22 T6 Speed sensor error Double speed pulses 4 00:03:49 60 2 T3 Mains failure Start delay 93 07:27:15 60 15 T3 Mains failure Overrvoltage L2 85 20:58:11 60 17 T3 Mains failure Underfrequency 1 00:02:41 60 40 T3 Mains failure Overrvoltage (hardware)1 00:02:39 60 120 T 1 00:02:39 62 101 T6 Feeding fault To low power inverter 1 1 00:00:30 62 701 T6 Feeding fault Overload chopper inverter 1 9 00:04:49 62 705 T6 Feeding fault Overload chopper inverter 5 3 00:01:49 64 502 T6 Overcurrent inverter I-Rectifier inverter 2 1 00:00:10 64 504 T6 Overcurrent inverter I-Rectifier inverter 4 1 00:00:10 64 507 T6 Overcurrent inverter I-Rectifier inverter 7 1 00:00:10 64 702 T6 Overcurrent inverter Collective fault message inv. 2 1 00:00:11 64 704 T6 Overcurrent inverter Collective fault message inv. 4 1 00:00:16 64 706 T6 Overcurrent inverter Collective fault message inv. 6 3 00:00:35 64 707 T6 Overcurrent inverter Collective fault message inv. 7 1 00:00:16 70 14 T6 Generator overtemperature Stator (winding overhang rear)32 43:37:50 90 10 T6 Prot. circuit-breaker- tripped Power supply excitation 1 133:11:09 222 3 T6 Turbine reset Scada system 14 00:00:19 240 0 T5 Remote control PC switched on 4 00:00:01 240 1 T5 Remote control PC switched off 4 325:47:52 March 2014 0 0 T1 Turbine in operation Turbine in operation 41 530:00:44 0 1 T1 Turbine starting Turbine starting 48 00:54:33 0 2 T1 Turbine operational Turbine operational 42 01:09:59 0 3 T1 Start lead-up Start lead-up 3 00:00:30 0 5 T1 Calibration of load control Calibration of load control 10 00:15:37 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 4 00:27:35 1 3 T1 Turbine stopped Scada System (ENERCON)3 00:01:39 2 1 T1 Lack of wind Wind speed to low 8 03:14:59 2 2 T1 Lack of wind Rotor speed to low 2 00:53:13 8 0 T6 Maintenance 8 19:15:14 Operating states 01/01/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:08:55 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 9 of 19 Main status Sub status Time catego ry Status text Num ber Duration 9 3 T1 Generator heating Hygrostat inverter 1 00:44:31 9 4 T1 Generator heating Hygrostat rectifier 1 01:09:21 14 11 T1 Ice detection Rotor (power measurement)3 49:39:09 15 19 T1 Turbine moist Several inverters 1 00:00:00 15 111 T1 Turbine moist Rectifier 1 00:00:01 21 2 T1 Cable twisted Right (2-3 turns)1 00:41:00 22 226 T6 Yaw control fault TWK NOCN: error cam switch 1 00:00:27 42 207 T6 Pitch control error Angle error blade B 8 00:01:18 42 238 T6 Pitch control error Motor current to high blade B 5 11:48:42 42 307 T6 Pitch control error Angle error blade C 1 00:00:12 48 22 T6 Speed sensor error Double speed pulses 12 00:11:44 49 204 T6 Fault blade load control Error old calibration blade B 1 00:04:41 60 2 T3 Mains failure Start delay 12 00:12:33 60 17 T3 Mains failure Underfrequency 2 00:05:24 60 28 T3 Mains failure Overfrequency (restart)1 00:00:00 62 701 T6 Feeding fault Overload chopper inverter 1 8 00:04:06 62 704 T6 Feeding fault Overload chopper inverter 4 1 00:00:36 62 705 T6 Feeding fault Overload chopper inverter 5 4 00:02:23 64 506 T6 Overcurrent inverter I-Rectifier inverter 6 1 00:00:10 64 706 T6 Overcurrent inverter Collective fault message inv. 6 1 00:00:10 220 33 T6 Processor reset Power Control 1 00:00:00 222 1 T6 Turbine reset Power failure 2 00:00:00 222 3 T6 Turbine reset Scada system 5 00:00:06 240 0 T5 Remote control PC switched on 6 00:00:05 240 1 T5 Remote control PC switched off 6 122:48:08 300 17 T6 Turbine control bus error (Bus-Off)Blade A 1 00:00:22 300 18 T6 Turbine control bus error (Bus-Off)Blade B 2 00:00:02 300 19 T6 Turbine control bus error (Bus-Off)Blade C 2 00:10:17 304 17 T6 Data bus error (Timeout)Blade A 1 00:00:28 305 17 T6 No data from I/O-Board control cabinet Blade A 1 00:00:01 305 18 T6 No data from I/O-Board control cabinet Blade B 1 00:00:00 305 19 T6 No data from I/O-Board control cabinet Blade C 1 00:00:00 Operating states 01/01/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:08:55 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 10 of 19 Main status Sub status Time catego ry Status text Num ber Duration April 2014 0 0 T1 Turbine in operation Turbine in operation 77 644:43:53 0 1 T1 Turbine starting Turbine starting 92 01:51:49 0 2 T1 Turbine operational Turbine operational 110 03:10:32 0 3 T1 Start lead-up Start lead-up 1 00:00:37 0 5 T1 Calibration of load control Calibration of load control 7 00:18:11 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 8 02:21:46 1 1 T1 Turbine stopped Control cabinet 4 00:14:06 1 3 T1 Turbine stopped Scada System (ENERCON)2 00:00:11 2 1 T1 Lack of wind Wind speed to low 13 11:12:42 5 2 T1 Blade defrosting Manual 3 00:01:11 8 0 T6 Maintenance 9 18:43:14 14 11 T1 Ice detection Rotor (power measurement)1 30:58:46 17 0 T6 Test security system 1 00:00:20 21 2 T1 Cable twisted Right (2-3 turns)1 00:41:01 60 2 T3 Mains failure Start delay 8 00:37:21 60 9 T3 Mains failure Undervoltage L1+L2+L3 1 00:02:34 60 17 T3 Mains failure Underfrequency 1 00:00:10 62 101 T6 Feeding fault To low power inverter 1 1 00:00:31 62 507 T6 Feeding fault No zero crossing inverter 7 1 00:00:00 62 701 T6 Feeding fault Overload chopper inverter 1 44 01:15:48 62 702 T6 Feeding fault Overload chopper inverter 2 5 00:12:51 62 703 T6 Feeding fault Overload chopper inverter 3 15 00:10:33 62 704 T6 Feeding fault Overload chopper inverter 4 12 00:05:40 62 705 T6 Feeding fault Overload chopper inverter 5 27 00:29:48 62 719 T6 Feeding fault Overload chopper several inv.11 01:43:24 64 504 T6 Overcurrent inverter I-Rectifier inverter 4 1 00:00:10 64 507 T6 Overcurrent inverter I-Rectifier inverter 7 1 00:00:10 64 704 T6 Overcurrent inverter Collective fault message inv. 4 1 00:00:16 64 707 T6 Overcurrent inverter Collective fault message inv. 7 1 00:00:15 220 33 T6 Processor reset Power Control 1 00:00:00 222 1 T6 Turbine reset Power failure 1 00:00:00 222 3 T6 Turbine reset Scada system 7 00:00:11 240 0 T5 Remote control PC switched on 1 00:00:01 240 1 T5 Remote control PC switched off 1 01:01:58 Operating states 01/01/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:08:55 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 11 of 19 Main status Sub status Time catego ry Status text Num ber Duration May 2014 0 0 T1 Turbine in operation Turbine in operation 65 670:57:35 0 1 T1 Turbine starting Turbine starting 71 01:58:23 0 2 T1 Turbine operational Turbine operational 88 02:08:47 0 5 T1 Calibration of load control Calibration of load control 9 00:52:10 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 6 00:28:50 1 1 T1 Turbine stopped Control cabinet 2 00:09:23 2 1 T1 Lack of wind Wind speed to low 26 18:49:14 5 2 T1 Blade defrosting Manual 9 00:02:50 8 0 T6 Maintenance 5 15:08:44 21 1 T1 Cable twisted Left (2-3 turns)1 00:41:05 21 2 T1 Cable twisted Right (2-3 turns)3 02:02:19 49 12 T6 Fault blade load control Timeout matching 1 00:00:23 60 2 T3 Mains failure Start delay 8 00:30:48 62 701 T6 Feeding fault Overload chopper inverter 1 28 14:41:51 62 702 T6 Feeding fault Overload chopper inverter 2 4 00:01:16 62 703 T6 Feeding fault Overload chopper inverter 3 17 00:54:47 62 704 T6 Feeding fault Overload chopper inverter 4 3 00:01:05 62 705 T6 Feeding fault Overload chopper inverter 5 24 00:21:09 62 719 T6 Feeding fault Overload chopper several inv.20 14:08:15 64 501 T6 Overcurrent inverter I-Rectifier inverter 1 1 00:00:10 64 506 T6 Overcurrent inverter I-Rectifier inverter 6 1 00:00:10 64 701 T6 Overcurrent inverter Collective fault message inv. 1 1 00:00:16 64 706 T6 Overcurrent inverter Collective fault message inv. 6 1 00:00:16 66 12 T6 Fault rectifier Overvoltage rectifier 2 1 00:00:05 222 3 T6 Turbine reset Scada system 8 00:00:09 Operating states 01/01/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:08:55 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 12 of 19 Main status Sub status Time catego ry Status text Num ber Duration June 2014 0 0 T1 Turbine in operation Turbine in operation 28 656:37:10 0 1 T1 Turbine starting Turbine starting 27 00:43:22 0 2 T1 Turbine operational Turbine operational 20 00:10:37 0 5 T1 Calibration of load control Calibration of load control 7 00:16:47 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 9 00:54:59 1 1 T1 Turbine stopped Control cabinet 3 01:06:32 1 3 T1 Turbine stopped Scada System (ENERCON)1 00:00:30 2 1 T1 Lack of wind Wind speed to low 12 15:19:45 2 2 T1 Lack of wind Rotor speed to low 2 00:13:46 8 0 T6 Maintenance 6 12:19:41 21 2 T1 Cable twisted Right (2-3 turns)2 01:21:48 42 222 T6 Pitch control error Supply power stage blade B 1 00:00:00 42 322 T6 Pitch control error Supply power stage blade C 1 00:00:00 60 2 T3 Mains failure Start delay 8 00:16:12 60 18 T3 Mains failure Overfrequency 1 00:02:43 62 505 T6 Feeding fault No zero crossing inverter 5 1 00:00:01 202 101 T6 Inverter bus error Inverter control 1 CPU 1 6 08:53:03 202 103 T6 Inverter bus error Inverter control 3 CPU 1 8 20:47:22 220 33 T6 Processor reset Power Control 1 00:00:00 220 203 T6 Processor reset Inverter control 3 CPU 1 1 00:00:10 222 1 T6 Turbine reset Power failure 4 00:00:04 222 3 T6 Turbine reset Scada system 4 00:00:02 228 95 T6 Timeout warnmessage Error temperature-measurement 1 00:18:55 240 0 T5 Remote control PC switched on 1 00:00:01 240 1 T5 Remote control PC switched off 1 00:36:30 Operating states 01/01/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:08:55 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 13 of 19 Main status Sub status Time catego ry Status text Num ber Duration July 2014 0 0 T1 Turbine in operation Turbine in operation 16 471:04:17 0 1 T1 Turbine starting Turbine starting 13 00:28:34 0 2 T1 Turbine operational Turbine operational 11 00:02:48 0 3 T1 Start lead-up Start lead-up 1 00:00:31 0 5 T1 Calibration of load control Calibration of load control 3 00:10:10 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 5 00:29:58 1 1 T1 Turbine stopped Control cabinet 2 00:04:31 2 1 T1 Lack of wind Wind speed to low 6 03:57:06 2 2 T1 Lack of wind Rotor speed to low 2 00:19:59 8 0 T6 Maintenance 10 06:41:10 17 0 T6 Test security system 1 00:00:21 42 302 T6 Pitch control error Limit switch 90° blade C 4 22:06:44 50 14 T6 Monitoring switch Noises in spinner 3 84:17:27 60 2 T3 Mains failure Start delay 4 00:08:17 60 17 T3 Mains failure Underfrequency 1 00:00:11 222 3 T6 Turbine reset Scada system 3 00:00:03 240 0 T5 Remote control PC switched on 2 00:00:01 240 1 T5 Remote control PC switched off 2 154:07:52 August 2014 0 0 T1 Turbine in operation Turbine in operation 40 672:57:39 0 1 T1 Turbine starting Turbine starting 33 01:24:30 0 2 T1 Turbine operational Turbine operational 30 00:06:02 0 5 T1 Calibration of load control Calibration of load control 4 00:11:36 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 18 02:18:55 1 1 T1 Turbine stopped Control cabinet 1 00:00:10 2 1 T1 Lack of wind Wind speed to low 23 19:53:59 2 2 T1 Lack of wind Rotor speed to low 4 00:47:23 8 0 T6 Maintenance 12 35:49:16 21 2 T1 Cable twisted Right (2-3 turns)1 00:40:55 60 2 T3 Mains failure Start delay 2 00:10:01 60 17 T3 Mains failure Underfrequency 1 00:00:11 222 3 T6 Turbine reset Scada system 1 00:00:01 228 100 T6 Timeout warnmessage Malfunction aircooling 1 08:43:29 240 0 T5 Remote control PC switched on 3 00:00:03 240 1 T5 Remote control PC switched off 3 00:55:50 Operating states 01/01/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:08:55 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 14 of 19 Main status Sub status Time catego ry Status text Num ber Duration September 2014 0 0 T1 Turbine in operation Turbine in operation 91 521:51:24 0 1 T1 Turbine starting Turbine starting 95 01:51:03 0 2 T1 Turbine operational Turbine operational 89 03:06:46 0 3 T1 Start lead-up Start lead-up 1 00:00:08 0 5 T1 Calibration of load control Calibration of load control 6 00:20:36 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 13 00:15:39 1 1 T1 Turbine stopped Control cabinet 5 00:00:22 1 3 T1 Turbine stopped Scada System (ENERCON)4 14:08:07 2 1 T1 Lack of wind Wind speed to low 7 03:05:27 8 0 T6 Maintenance 22 40:39:18 9 1 T1 Generator heating Isometer 1 03:56:18 9 3 T1 Generator heating Hygrostat inverter 1 00:28:53 9 4 T1 Generator heating Hygrostat rectifier 2 00:42:14 15 4 T1 Turbine moist Inverter 4 1 00:00:07 15 111 T1 Turbine moist Rectifier 2 00:00:23 17 0 T6 Test security system 1 00:00:20 21 2 T1 Cable twisted Right (2-3 turns)1 00:40:45 22 226 T6 Yaw control fault TWK NOCN: error cam switch 2 00:01:00 42 308 T6 Pitch control error 56° -mark blade C not programmed 4 53:43:24 42 322 T6 Pitch control error Supply power stage blade C 1 00:01:21 49 105 T6 Fault blade load control Error load sensor blade A 2 00:00:04 49 204 T6 Fault blade load control Error old calibration blade B 6 17:49:25 49 221 T6 Fault blade load control Overflow measurement blade B 3 03:20:24 49 305 T6 Fault blade load control Error load sensor blade C 1 00:00:03 60 2 T3 Mains failure Start delay 77 12:37:54 60 15 T3 Mains failure Overrvoltage L2 61 36:43:11 60 16 T3 Mains failure Overrvoltage L3 2 00:00:22 60 17 T3 Mains failure Underfrequency 1 00:00:11 62 502 T6 Feeding fault No zero crossing inverter 2 1 00:01:01 64 701 T6 Overcurrent inverter Collective fault message inv. 1 1 00:00:11 64 703 T6 Overcurrent inverter Collective fault message inv. 3 1 00:00:11 66 21 T6 Fault rectifier Isometer system 1 1 00:00:06 70 11 T6 Generator overtemperature Stator (slot)11 00:32:57 222 1 T6 Turbine reset Power failure 3 00:00:03 222 3 T6 Turbine reset Scada system 9 00:00:06 240 0 T5 Remote control PC switched on 7 00:06:24 240 1 T5 Remote control PC switched off 7 03:50:51 240 246 T5 Remote control PC Timeout receivebuffer 1 00:03:01 Operating states 01/01/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:08:55 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 15 of 19 Main status Sub status Time catego ry Status text Num ber Duration October 2014 0 0 T1 Turbine in operation Turbine in operation 18 647:15:02 0 1 T1 Turbine starting Turbine starting 18 00:24:58 0 2 T1 Turbine operational Turbine operational 23 00:34:50 0 5 T1 Calibration of load control Calibration of load control 3 00:04:56 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 1 00:17:25 2 1 T1 Lack of wind Wind speed to low 5 04:46:43 5 2 T1 Blade defrosting Manual 1 00:21:10 8 0 T6 Maintenance 1 00:32:25 21 2 T1 Cable twisted Right (2-3 turns)1 00:40:41 22 226 T6 Yaw control fault TWK NOCN: error cam switch 2 00:01:01 49 105 T6 Fault blade load control Error load sensor blade A 6 00:24:34 49 205 T6 Fault blade load control Error load sensor blade B 3 00:09:23 49 305 T6 Fault blade load control Error load sensor blade C 1 00:00:04 60 2 T3 Mains failure Start delay 7 00:17:29 60 16 T3 Mains failure Overrvoltage L3 1 00:02:44 60 17 T3 Mains failure Underfrequency 2 00:02:53 62 30 T6 Feeding fault Feeding security circuit faulty 1 00:00:25 67 602 T6 Overtemperature Power choke inverter 2 4 00:01:42 69 19 T6 Acoustic sensor Several Inverters 1 05:06:29 220 33 T6 Processor reset Power Control 2 00:00:01 222 1 T6 Turbine reset Power failure 2 00:00:00 222 3 T6 Turbine reset Scada system 2 00:00:02 240 0 T5 Remote control PC switched on 2 00:00:01 240 1 T5 Remote control PC switched off 2 49:41:10 Operating states 01/01/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:08:55 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 16 of 19 Status overview per month: Main status Status text 01 . 2 0 1 4 02 . 2 0 1 4 03 . 2 0 1 4 04 . 2 0 1 4 05 . 2 0 1 4 06 . 2 0 1 4 07 . 2 0 1 4 08 . 2 0 1 4 09 . 2 0 1 4 10 . 2 0 1 4 total Duration (h) 0 Turbine in operation 56 434 148 295 239 91 49 125 295 63 1795 5055:56:14 1 Turbine stopped 1 3 6 2 4 2 1 9 28 15:49:05 2 Lack of wind 9 2 10 13 26 14 8 27 7 5 121 90:05:10 5 Blade defrosting 3 9 1 13 00:25:11 8 Maintenance 6 12 8 9 5 6 10 12 22 1 91 168:55:30 9 Generator heating 1 2 2 4 9 09:08:27 14 Ice detection 3 1 4 80:37:55 15 Turbine moist 2 2 3 7 00:00:34 17 Test security system 1 1 1 3 00:01:01 21 Cable twisted 1 1 4 2 1 1 1 11 07:29:34 22 Yaw control fault 1 2 2 5 00:02:28 42 Pitch control error 14 2 4 5 25 87:41:41 48 Speed sensor error 4 12 16 00:15:33 49 Fault blade load control 1 1 12 10 24 21:49:01 50 Monitoring switch 3 3 84:17:27 60 Mains failure 12 181 15 10 8 9 5 3 141 10 394 80:38:54 62 Feeding fault 13 13 116 96 1 1 1 241 34:22:38 64 Overcurrent inverter 9 2 4 4 2 21 00:04:13 66 Fault rectifier 1 1 2 00:00:11 67 Overtemperature 4 4 00:01:42 69 Acoustic sensor 1 1 05:06:29 70 Generator overtemperature 32 11 43 44:10:47 80 Excitation error 19 19 17:01:52 90 Prot. circuit-breaker- tripped 2 1 3 261:07:34 202 Inverter bus error 14 14 29:40:25 220 Processor reset 1 1 2 2 6 00:00:11 222 Turbine reset 5 14 7 8 8 8 3 1 12 4 70 00:01:09 228 Timeout warnmessage 1 1 2 09:02:24 240 Remote control PC 23 8 12 2 2 4 6 15 4 76 828:39:29 300 Turbine control bus error (Bus-Off)5 5 00:10:41 304 Data bus error (Timeout)1 1 00:00:28 305 No data from I/O-Board control cabinet 3 3 00:00:01 Operating states 01/01/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:08:55 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 17 of 19 Service & Maintenance Order number Date Short description 000092675819 January-22-14 TROUBLESHOOT SCADA CONNECTION 000092679517 January-25-14 SUPPORT FOR Customer Walkdown 000092683047 February-07-14 SCADA S:90/10 W:233/62 000092722550 February-21-14 CHECK SCADA CONNECTION AFTER NSPI WORK 000092706036 February-21-14 CHECK SWITCHGEAR 000092679494 February-21-14 REPLACE IGBT IN POWER CABINET 000092726472 February-25-14 SCADA S:70/14 W:0/0 000092728019 February-27-14 SCADA S:70/14 W:55/301 000092733689 March-05-14 SCADA S:42/238 W:0/10 000092739034 March-08-14 REPAIR POWER CABINET #8 000092752445 March-25-14 RT - INSTALL QTA-4574-T200 000092762483 March-26-14 SCADA S:0/0 W:55/301 000092745543 March-26-14 SCADA S:0/0 W:55/301 000092745544 March-26-14 TROUBLESHOOT POWER CABINET FAILURES 000092808299 April-24-14 REMAINING TASKS 000092825603 May-09-14 SCADA S:0/0 W:230/102 000092855107 May-30-14 CHECK BEACON OPERATION 000092855112 June-05-14 SCADA S:0/0 W:230/102 000092764702 June-10-14 INSTALL LAD TURNOUTS 511559 000092879261 June-10-14 INSTALL FAN COVERS 000092878271 June-10-14 REMOVE STRAP FOR VENTILLATION TARP 000092879252 June-10-14 SCADA S:202/101 W:0/10 000092888169 June-18-14 SCADA S:202/103 W:0/10 000092888302 June-18-14 RT - INSTALL ERROR RESET BUTTON 000092924939 July-14-14 SCADA S:50/14 W:0/10 000092888298 July-29-14 RT - INSTALL U-CLAMPS SYS 1 000092979147 July-29-14 SCADA S:50/14 W:0/10 000092976037 July-29-14 SCADA S:42/302 W:0/10 000092987846 August-07-14 SCADA S:0/0 W:100/1 000092939931 August-22-14 INSTALL RT - U-CLAMPS GEN SYS 1 000092825746 August-28-14 INSTALL BLADE HEATING CABLES Overview of service and maintenance actions performed on the WEC by ENERCON Service. Service and repair 01/01/2014 - 31/10/2014 Service & Maintenance 825722 Generated on 07/11/2014 3:08:56 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 18 of 19 Order number Date Short description 000092925381 August-28-14 INVESTIGATE INSIDE TOWER LIGHT ISSUES 000093013518 August-29-14 SCADA S:0/0 W:55/301 000093014909 August-30-14 REPLACE TEMP SENSOR BL HEAT ELEMENT 000092827786 August-30-14 replacing axial fans in rectifier units 000093018889 September-03-14 SCADA S:49/204 W:0/10 000093022941 September-06-14 SCADA S:42/308 W:0/10 000093024264 September-06-14 SCADA S:70/11 W:0/10 000093020309 September-09-14 SCADA S:42/308 W:26/122 000093037903 September-12-14 Troubleshoot air cooling warnings 000093047705 September-23-14 60:15 000093047685 September-23-14 REBUILD POWER CABINETS 000092917582 September-24-14 CHECK NO SCADA CONNECTION 000093019598 September-24-14 42:322 FAULT TROUBLESHOOTING 000093012393 September-24-14 SCADA S:0/0 W:55/301 000093050408 September-25-14 OP: difference in operating parameters 000093080703 October-21-14 SCADA S:69/19 W:0/0 000093091482 October-28-14 BOOK MATERIAL Order number Date Short description 000092850533 June-10-14 Mechan. Wartung / Mechanical mainten. 000092912369 August-30-14 Elektr. Wartung / Electrical maintenance Maintenance 01/01/2014 - 31/10/2014 Service & Maintenance 825722 Generated on 07/11/2014 3:08:56 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 19 of 19 Operating report WEC 825722 01/04/2014 - 31/10/2014 Table of contents 1 Overview 2 Yield & wind 3 WEC performance & wind 4 Availability analysis 5 Operating states 6 Service & Maintenance Table of contents Generated on 07/11/2014 3:43:35 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Category Value Total yield 2,349,449 kWh Operating hours 4,258 h Average wind speed 6.3 m/s Average power output 483 kW Number of maintenance actions 2 Number of other Service actions 34 Overview Serial number Plant type Nominal power: Commissioning Analysis time period: Diagram: Total yield in reporting period compared to previous year 825722 E-82 E2 2000 kW 12/01/2014 01/04/2014 - 31/10/2014 Overview 01/04/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:43:35 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 1 of 15 Analysis of monthly yield, wind and power based on ENERCON SCADA data Yield & wind Diagram: Monthly yield compared to previous year Diagram: Monthly average wind speed in reporting period compared to previous year Plant 825722 Wind [m/s]Power [kW]Operating hours [h]energy yield [kWh] Ø max.Ø max.Previous year April 2014 7.5 28.9 643 2,153 643 462,230 0 May 2014 5.4 20.8 302 2,140 655 219,954 0 June 2014 5.9 25.1 470 2,310 641 333,359 0 July 2014 5.9 37.5 411 2,150 465 239,458 0 August 2014 5.6 23.0 408 2,125 659 298,631 0 September 2014 6.3 30.2 399 2,119 517 281,464 0 October 2014 7.2 32.3 745 2,180 678 514,353 0 6,3 28.3 483 2,168 4,258 2,349,449 0 Yield & wind 01/04/2014 - 31/10/2014 825722 All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Generated on 07/11/2014 3:43:36 PM by the user S00000000430 from ENERCON Service Info Portal Page 2 of 15 WEC performance & wind Power curve: Actual data compared to calculated power curve on standard air density Wind distribution: Analysis of nacelle position based on 10-minute values April 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 60 80 May 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 60 June 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 01/04/2014 - 31/10/2014 WEC performance & wind 825722 Generated on 07/11/2014 3:43:36 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 3 of 15 July 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 August 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 60 80 September 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 60 80 01/04/2014 - 31/10/2014 WEC performance & wind 825722 Generated on 07/11/2014 3:43:36 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 4 of 15 October 2014 0 5 10 15 20 25 m/s 0 281 562 843 1124 1405 1686 1967 2248 kW 0° 30° 60° 90° 120° 150° 180° 210° 240° 270° 300° 330° 0 20 40 60 01/04/2014 - 31/10/2014 WEC performance & wind 825722 Generated on 07/11/2014 3:43:36 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 5 of 15 Plant 825722 Time category [hh:mm:ss]Availability Time T1 T2 T3 T4 T5 T6 Prev. year April 2014 2504031 2591906 2373 0 3711 81791 96.84 %0.00 % May 2014 2513373 2678338 1848 0 0 163117 93.91 %0.00 % June 2014 2436323 2591896 1094 0 2184 152295 94.12 %0.00 % July 2014 1715823 2678326 508 0 554861 407134 80.82 %0.00 % August 2014 2510848 2678228 612 0 3333 163435 93.89 %0.00 % September 2014 1981637 2591775 177697 0 14844 417597 82.59 %0.00 % October 2014 2475530 2678257 1304 0 178857 22566 99.10 %0.00 % 4482:39:25 5135:45:26 51:30:36 00:00:00 210:29:50 391:05:35 91.98 %NaN Availability analysis Monthly technical availability (without maintenance factor into account) as well as time category key based on SCADA data. Diagram: Display of technical availability compared to previous year Availability analysis 01/04/2014 - 31/10/2014 825722 All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Generated on 07/11/2014 3:44:12 PM by the user S00000000430 from ENERCON Service Info Portal Page 6 of 15 Operating states Display of status messages generated by the wind energy converter including time category, number and total duration of the respective operating status Number and duration of status messages - total: Main status Sub status Time catego ry Status text Num ber Duration April 2014 0 0 T1 Turbine in operation Turbine in operation 77 644:43:53 0 1 T1 Turbine starting Turbine starting 92 01:51:49 0 2 T1 Turbine operational Turbine operational 110 03:10:32 0 3 T1 Start lead-up Start lead-up 1 00:00:37 0 5 T1 Calibration of load control Calibration of load control 7 00:18:11 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 8 02:21:46 1 1 T1 Turbine stopped Control cabinet 4 00:14:06 1 3 T1 Turbine stopped Scada System (ENERCON)2 00:00:11 2 1 T1 Lack of wind Wind speed to low 13 11:12:42 5 2 T1 Blade defrosting Manual 3 00:01:11 8 0 T6 Maintenance 9 18:43:14 14 11 T1 Ice detection Rotor (power measurement)1 30:58:46 17 0 T6 Test security system 1 00:00:20 21 2 T1 Cable twisted Right (2-3 turns)1 00:41:01 60 2 T3 Mains failure Start delay 8 00:37:21 60 9 T3 Mains failure Undervoltage L1+L2+L3 1 00:02:34 60 17 T3 Mains failure Underfrequency 1 00:00:10 62 101 T6 Feeding fault To low power inverter 1 1 00:00:31 62 507 T6 Feeding fault No zero crossing inverter 7 1 00:00:00 62 701 T6 Feeding fault Overload chopper inverter 1 44 01:15:48 62 702 T6 Feeding fault Overload chopper inverter 2 5 00:12:51 62 703 T6 Feeding fault Overload chopper inverter 3 15 00:10:33 62 704 T6 Feeding fault Overload chopper inverter 4 12 00:05:40 62 705 T6 Feeding fault Overload chopper inverter 5 27 00:29:48 62 719 T6 Feeding fault Overload chopper several inv.11 01:43:24 64 504 T6 Overcurrent inverter I-Rectifier inverter 4 1 00:00:10 64 507 T6 Overcurrent inverter I-Rectifier inverter 7 1 00:00:10 64 704 T6 Overcurrent inverter Collective fault message inv. 4 1 00:00:16 64 707 T6 Overcurrent inverter Collective fault message inv. 7 1 00:00:15 220 33 T6 Processor reset Power Control 1 00:00:00 222 1 T6 Turbine reset Power failure 1 00:00:00 222 3 T6 Turbine reset Scada system 7 00:00:11 240 0 T5 Remote control PC switched on 1 00:00:01 240 1 T5 Remote control PC switched off 1 01:01:58 Operating states 01/04/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:44:12 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 7 of 15 Main status Sub status Time catego ry Status text Num ber Duration May 2014 0 0 T1 Turbine in operation Turbine in operation 65 670:57:35 0 1 T1 Turbine starting Turbine starting 71 01:58:23 0 2 T1 Turbine operational Turbine operational 88 02:08:47 0 5 T1 Calibration of load control Calibration of load control 9 00:52:10 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 6 00:28:50 1 1 T1 Turbine stopped Control cabinet 2 00:09:23 2 1 T1 Lack of wind Wind speed to low 26 18:49:14 5 2 T1 Blade defrosting Manual 9 00:02:50 8 0 T6 Maintenance 5 15:08:44 21 1 T1 Cable twisted Left (2-3 turns)1 00:41:05 21 2 T1 Cable twisted Right (2-3 turns)3 02:02:19 49 12 T6 Fault blade load control Timeout matching 1 00:00:23 60 2 T3 Mains failure Start delay 8 00:30:48 62 701 T6 Feeding fault Overload chopper inverter 1 28 14:41:51 62 702 T6 Feeding fault Overload chopper inverter 2 4 00:01:16 62 703 T6 Feeding fault Overload chopper inverter 3 17 00:54:47 62 704 T6 Feeding fault Overload chopper inverter 4 3 00:01:05 62 705 T6 Feeding fault Overload chopper inverter 5 24 00:21:09 62 719 T6 Feeding fault Overload chopper several inv.20 14:08:15 64 501 T6 Overcurrent inverter I-Rectifier inverter 1 1 00:00:10 64 506 T6 Overcurrent inverter I-Rectifier inverter 6 1 00:00:10 64 701 T6 Overcurrent inverter Collective fault message inv. 1 1 00:00:16 64 706 T6 Overcurrent inverter Collective fault message inv. 6 1 00:00:16 66 12 T6 Fault rectifier Overvoltage rectifier 2 1 00:00:05 222 3 T6 Turbine reset Scada system 8 00:00:09 Operating states 01/04/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:44:12 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 8 of 15 Main status Sub status Time catego ry Status text Num ber Duration June 2014 0 0 T1 Turbine in operation Turbine in operation 28 656:37:10 0 1 T1 Turbine starting Turbine starting 27 00:43:22 0 2 T1 Turbine operational Turbine operational 20 00:10:37 0 5 T1 Calibration of load control Calibration of load control 7 00:16:47 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 9 00:54:59 1 1 T1 Turbine stopped Control cabinet 3 01:06:32 1 3 T1 Turbine stopped Scada System (ENERCON)1 00:00:30 2 1 T1 Lack of wind Wind speed to low 12 15:19:45 2 2 T1 Lack of wind Rotor speed to low 2 00:13:46 8 0 T6 Maintenance 6 12:19:41 21 2 T1 Cable twisted Right (2-3 turns)2 01:21:48 42 222 T6 Pitch control error Supply power stage blade B 1 00:00:00 42 322 T6 Pitch control error Supply power stage blade C 1 00:00:00 60 2 T3 Mains failure Start delay 8 00:16:12 60 18 T3 Mains failure Overfrequency 1 00:02:43 62 505 T6 Feeding fault No zero crossing inverter 5 1 00:00:01 202 101 T6 Inverter bus error Inverter control 1 CPU 1 6 08:53:03 202 103 T6 Inverter bus error Inverter control 3 CPU 1 8 20:47:22 220 33 T6 Processor reset Power Control 1 00:00:00 220 203 T6 Processor reset Inverter control 3 CPU 1 1 00:00:10 222 1 T6 Turbine reset Power failure 4 00:00:04 222 3 T6 Turbine reset Scada system 4 00:00:02 228 95 T6 Timeout warnmessage Error temperature-measurement 1 00:18:55 240 0 T5 Remote control PC switched on 1 00:00:01 240 1 T5 Remote control PC switched off 1 00:36:30 Operating states 01/04/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:44:12 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 9 of 15 Main status Sub status Time catego ry Status text Num ber Duration July 2014 0 0 T1 Turbine in operation Turbine in operation 16 471:04:17 0 1 T1 Turbine starting Turbine starting 13 00:28:34 0 2 T1 Turbine operational Turbine operational 11 00:02:48 0 3 T1 Start lead-up Start lead-up 1 00:00:31 0 5 T1 Calibration of load control Calibration of load control 3 00:10:10 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 5 00:29:58 1 1 T1 Turbine stopped Control cabinet 2 00:04:31 2 1 T1 Lack of wind Wind speed to low 6 03:57:06 2 2 T1 Lack of wind Rotor speed to low 2 00:19:59 8 0 T6 Maintenance 10 06:41:10 17 0 T6 Test security system 1 00:00:21 42 302 T6 Pitch control error Limit switch 90° blade C 4 22:06:44 50 14 T6 Monitoring switch Noises in spinner 3 84:17:27 60 2 T3 Mains failure Start delay 4 00:08:17 60 17 T3 Mains failure Underfrequency 1 00:00:11 222 3 T6 Turbine reset Scada system 3 00:00:03 240 0 T5 Remote control PC switched on 2 00:00:01 240 1 T5 Remote control PC switched off 2 154:07:52 August 2014 0 0 T1 Turbine in operation Turbine in operation 40 672:57:39 0 1 T1 Turbine starting Turbine starting 33 01:24:30 0 2 T1 Turbine operational Turbine operational 30 00:06:02 0 5 T1 Calibration of load control Calibration of load control 4 00:11:36 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 18 02:18:55 1 1 T1 Turbine stopped Control cabinet 1 00:00:10 2 1 T1 Lack of wind Wind speed to low 23 19:53:59 2 2 T1 Lack of wind Rotor speed to low 4 00:47:23 8 0 T6 Maintenance 12 35:49:16 21 2 T1 Cable twisted Right (2-3 turns)1 00:40:55 60 2 T3 Mains failure Start delay 2 00:10:01 60 17 T3 Mains failure Underfrequency 1 00:00:11 222 3 T6 Turbine reset Scada system 1 00:00:01 228 100 T6 Timeout warnmessage Malfunction aircooling 1 08:43:29 240 0 T5 Remote control PC switched on 3 00:00:03 240 1 T5 Remote control PC switched off 3 00:55:50 Operating states 01/04/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:44:12 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 10 of 15 Main status Sub status Time catego ry Status text Num ber Duration September 2014 0 0 T1 Turbine in operation Turbine in operation 91 521:51:24 0 1 T1 Turbine starting Turbine starting 95 01:51:03 0 2 T1 Turbine operational Turbine operational 89 03:06:46 0 3 T1 Start lead-up Start lead-up 1 00:00:08 0 5 T1 Calibration of load control Calibration of load control 6 00:20:36 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 13 00:15:39 1 1 T1 Turbine stopped Control cabinet 5 00:00:22 1 3 T1 Turbine stopped Scada System (ENERCON)4 14:08:07 2 1 T1 Lack of wind Wind speed to low 7 03:05:27 8 0 T6 Maintenance 22 40:39:18 9 1 T1 Generator heating Isometer 1 03:56:18 9 3 T1 Generator heating Hygrostat inverter 1 00:28:53 9 4 T1 Generator heating Hygrostat rectifier 2 00:42:14 15 4 T1 Turbine moist Inverter 4 1 00:00:07 15 111 T1 Turbine moist Rectifier 2 00:00:23 17 0 T6 Test security system 1 00:00:20 21 2 T1 Cable twisted Right (2-3 turns)1 00:40:45 22 226 T6 Yaw control fault TWK NOCN: error cam switch 2 00:01:00 42 308 T6 Pitch control error 56° -mark blade C not programmed 4 53:43:24 42 322 T6 Pitch control error Supply power stage blade C 1 00:01:21 49 105 T6 Fault blade load control Error load sensor blade A 2 00:00:04 49 204 T6 Fault blade load control Error old calibration blade B 6 17:49:25 49 221 T6 Fault blade load control Overflow measurement blade B 3 03:20:24 49 305 T6 Fault blade load control Error load sensor blade C 1 00:00:03 60 2 T3 Mains failure Start delay 77 12:37:54 60 15 T3 Mains failure Overrvoltage L2 61 36:43:11 60 16 T3 Mains failure Overrvoltage L3 2 00:00:22 60 17 T3 Mains failure Underfrequency 1 00:00:11 62 502 T6 Feeding fault No zero crossing inverter 2 1 00:01:01 64 701 T6 Overcurrent inverter Collective fault message inv. 1 1 00:00:11 64 703 T6 Overcurrent inverter Collective fault message inv. 3 1 00:00:11 66 21 T6 Fault rectifier Isometer system 1 1 00:00:06 70 11 T6 Generator overtemperature Stator (slot)11 00:32:57 222 1 T6 Turbine reset Power failure 3 00:00:03 222 3 T6 Turbine reset Scada system 9 00:00:06 240 0 T5 Remote control PC switched on 7 00:06:24 240 1 T5 Remote control PC switched off 7 03:50:51 240 246 T5 Remote control PC Timeout receivebuffer 1 00:03:01 Operating states 01/04/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:44:12 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 11 of 15 Main status Sub status Time catego ry Status text Num ber Duration October 2014 0 0 T1 Turbine in operation Turbine in operation 18 647:15:02 0 1 T1 Turbine starting Turbine starting 18 00:24:58 0 2 T1 Turbine operational Turbine operational 23 00:34:50 0 5 T1 Calibration of load control Calibration of load control 3 00:04:56 0 8 T1 Turbine in operation during maintenance Turbine in operation during maintenance 1 00:17:25 2 1 T1 Lack of wind Wind speed to low 5 04:46:43 5 2 T1 Blade defrosting Manual 1 00:21:10 8 0 T6 Maintenance 1 00:32:25 21 2 T1 Cable twisted Right (2-3 turns)1 00:40:41 22 226 T6 Yaw control fault TWK NOCN: error cam switch 2 00:01:01 49 105 T6 Fault blade load control Error load sensor blade A 6 00:24:34 49 205 T6 Fault blade load control Error load sensor blade B 3 00:09:23 49 305 T6 Fault blade load control Error load sensor blade C 1 00:00:04 60 2 T3 Mains failure Start delay 7 00:17:29 60 16 T3 Mains failure Overrvoltage L3 1 00:02:44 60 17 T3 Mains failure Underfrequency 2 00:02:53 62 30 T6 Feeding fault Feeding security circuit faulty 1 00:00:25 67 602 T6 Overtemperature Power choke inverter 2 4 00:01:42 69 19 T6 Acoustic sensor Several Inverters 1 05:06:29 220 33 T6 Processor reset Power Control 2 00:00:01 222 1 T6 Turbine reset Power failure 2 00:00:00 222 3 T6 Turbine reset Scada system 2 00:00:02 240 0 T5 Remote control PC switched on 2 00:00:01 240 1 T5 Remote control PC switched off 2 49:41:10 Operating states 01/04/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:44:12 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 12 of 15 Status overview per month: Main status Status text 04 . 2 0 1 4 05 . 2 0 1 4 06 . 2 0 1 4 07 . 2 0 1 4 08 . 2 0 1 4 09 . 2 0 1 4 10 . 2 0 1 4 total Duration (h) 0 Turbine in operation 295 239 91 49 125 295 63 1157 4312:53:15 1 Turbine stopped 6 2 4 2 1 9 24 15:43:52 2 Lack of wind 13 26 14 8 27 7 5 100 78:26:04 5 Blade defrosting 3 9 1 13 00:25:11 8 Maintenance 9 5 6 10 12 22 1 65 129:53:48 9 Generator heating 4 4 05:07:25 14 Ice detection 1 1 30:58:46 15 Turbine moist 3 3 00:00:30 17 Test security system 1 1 1 3 00:01:01 21 Cable twisted 1 4 2 1 1 1 10 06:48:34 22 Yaw control fault 2 2 4 00:02:01 42 Pitch control error 2 4 5 11 75:51:29 49 Fault blade load control 1 12 10 23 21:44:20 50 Monitoring switch 3 3 84:17:27 60 Mains failure 10 8 9 5 3 141 10 186 51:33:12 62 Feeding fault 116 96 1 1 1 215 34:08:25 64 Overcurrent inverter 4 4 2 10 00:02:05 66 Fault rectifier 1 1 2 00:00:11 67 Overtemperature 4 4 00:01:42 69 Acoustic sensor 1 1 05:06:29 70 Generator overtemperature 11 11 00:32:57 202 Inverter bus error 14 14 29:40:25 220 Processor reset 1 2 2 5 00:00:11 222 Turbine reset 8 8 8 3 1 12 4 44 00:00:41 228 Timeout warnmessage 1 1 2 09:02:24 240 Remote control PC 2 2 4 6 15 4 33 210:23:43 Operating states 01/04/2014 - 31/10/2014 825722 Generated on 07/11/2014 3:44:12 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 13 of 15 Service & Maintenance Order number Date Short description 000092808299 April-24-14 REMAINING TASKS 000092825603 May-09-14 SCADA S:0/0 W:230/102 000092855107 May-30-14 CHECK BEACON OPERATION 000092855112 June-05-14 SCADA S:0/0 W:230/102 000092879252 June-10-14 SCADA S:202/101 W:0/10 000092764702 June-10-14 INSTALL LAD TURNOUTS 511559 000092879261 June-10-14 INSTALL FAN COVERS 000092878271 June-10-14 REMOVE STRAP FOR VENTILLATION TARP 000092888169 June-18-14 SCADA S:202/103 W:0/10 000092888302 June-18-14 RT - INSTALL ERROR RESET BUTTON 000092924939 July-14-14 SCADA S:50/14 W:0/10 000092979147 July-29-14 SCADA S:50/14 W:0/10 000092976037 July-29-14 SCADA S:42/302 W:0/10 000092888298 July-29-14 RT - INSTALL U-CLAMPS SYS 1 000092987846 August-07-14 SCADA S:0/0 W:100/1 000092939931 August-22-14 INSTALL RT - U-CLAMPS GEN SYS 1 000092925381 August-28-14 INVESTIGATE INSIDE TOWER LIGHT ISSUES 000092825746 August-28-14 INSTALL BLADE HEATING CABLES 000093013518 August-29-14 SCADA S:0/0 W:55/301 000093014909 August-30-14 REPLACE TEMP SENSOR BL HEAT ELEMENT 000092827786 August-30-14 replacing axial fans in rectifier units 000093018889 September-03-14 SCADA S:49/204 W:0/10 000093024264 September-06-14 SCADA S:70/11 W:0/10 000093022941 September-06-14 SCADA S:42/308 W:0/10 000093020309 September-09-14 SCADA S:42/308 W:26/122 000093037903 September-12-14 Troubleshoot air cooling warnings 000093047705 September-23-14 60:15 000093047685 September-23-14 REBUILD POWER CABINETS 000093012393 September-24-14 SCADA S:0/0 W:55/301 000092917582 September-24-14 CHECK NO SCADA CONNECTION 000093019598 September-24-14 42:322 FAULT TROUBLESHOOTING Overview of service and maintenance actions performed on the WEC by ENERCON Service. Service and repair 01/04/2014 - 31/10/2014 Service & Maintenance 825722 Generated on 07/11/2014 3:44:13 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 14 of 15 Order number Date Short description 000093050408 September-25-14 OP: difference in operating parameters 000093080703 October-21-14 SCADA S:69/19 W:0/0 000093091482 October-28-14 BOOK MATERIAL Order number Date Short description 000092850533 June-10-14 Mechan. Wartung / Mechanical mainten. 000092912369 August-30-14 Elektr. Wartung / Electrical maintenance Maintenance 01/04/2014 - 31/10/2014 Service & Maintenance 825722 Generated on 07/11/2014 3:44:13 PM by the user S00000000430 from ENERCON Service Info Portal All rights reserved - This information is not exhaustive and there is no guarantee as to its correctness. Copyright @ ENERCON GmbH, 2014 Page 15 of 15