Erin dips into reserves for unbudgeted costs

The Town of Erin will use reserve funds to cover an operating deficit of $62,924 for 2017, plus an unbudgeted total of $693,388 to complete the Wastewater Environmental Assessment.

Town council agreed on April 3 to fund the deficit from the Tax Rate Stabilization Reserve, which now has a balance of $224,881. At the end of 2016, that reserve was at $383,809.

Details on the 2017 fourth quarter results were presented in a report by Director of Finance Ursula D’Angelo. It includes explanations for departments that were over or under budget by more than 10 per cent or $10,000. 

The overall operating budget is about $10.5 million. In addition, the Town had budgeted $7.6 million for capital projects in 2017, but by the end of the year had spent only $2.4 million. Council has agreed to push a list of projects forward to 2018.

D’Angelo also got council approval to cover $693,388 in outstanding costs for the Wastewater EA, to be funded equally between three reserve funds: Infrastructure, Water Lifecycle and Administration Development Charges.

The March 2016 EA contract with Ainley Group was $899,253, and the town intended at the time to budget $200,000 per year towards it for three years. That was done in 2016, and with funds brought forward from 2015, $345,865 was covered.

D’Angelo’s report indicates that no funds for the contract were allocated in the 2017 or 2018 budgets. Councillors made no comment about this, but Mayor Allan Alls said later that covering these costs from reserves was always the plan. 

Also not included in the budget or the cost of the Wastewater EA was $140,000 in management fees from Triton Engineering. When added to the Ainley obligation, the total outstanding is $693,388.

“I want to know how we missed the management fees,” said Coun. John Brennan. “Obviously that is an important part of any project, and something that we need to pay attention to as we go forward.” 

The town’s 51 reserve accounts were up by about $1 million at the end of 2017, to a total of $9.1 million, and are projected to be almost $10 million by the end of 2018.

The fourth quarter report shows the administration department 19 per cent over budget, partly because better tax collection reduced income from penalties and interest.

Administration expenses were also higher than expected by 14 per cent, with an extra $90,000 in labour costs due to staff changes, and an extra $28,000 for temporary administrative support. Insurance and deductibles were higher by $52,000 due to “ongoing corporate matters”.

The planning budget took a hit of $64,665 in legal fees for the successful defense of the Angelstone Farms zoning bylaw at an Ontario Municipal Board hearing.

Planning revenue of $18,100 was just 53 per cent of the budget projection, while labour costs were 21 per cent over budget at $37,214. On the positive side, consulting services cost only $5,600, instead of the expected $39,900.

For bylaw enforcement and crossing guards, there was an extra $5,000 for labour costs and an extra $7,982 (100 per cent over budget) for legal fees. Revenue was only $950 (43 per cent of budget).

There were many positive and negative variances in the recreation department, including an extra $103,000 in labour costs due to staff changes. Facility rental income was down by $15,000 at the Erin Community Centre due to lower activity, and revenue from baseball diamond and soccer field rentals was lower due to rain-outs. 

Council has voted in favour of doubling its general liability insurance coverage from $25 million to $50 million, for a premium increase of $1,500 annually. The full insurance contract with Jardine Lloyd Thompson Canada Inc. has an annual premium of $127,862.

Erin council remuneration totals $120,062

Remuneration for Erin town council members totaled $120,062 in 2017, according to an annual report by Director of Finance Ursula D’Angelo.

Mayor Allan Alls received a salary of $27,000, while each of the other members received $16,200. Other benefits including employer contributions for pension and insurance premiums are valued at up to $7,018.

The Municipal Act requires the treasurer to provide an itemized statement of amounts paid to members of council and other boards.

Councillors are allowed to claim the cost of attending conferences and other expenses. The town paid expenses of totalling $1,173 for the mayor, $2,706 for John Brennan and $1,725 for Jeff Duncan. Councillors Matt Sammut and Rob Smith claimed no expenses.

Anyone considering running for council in the October 22 election should be aware of a Candidate Information Session to be held Thursday, April 12, 6:30 p.m., in Aboyne Hall at the Wellington County Museum and Archives near Fergus.

It is a free education session conducted by the Ontario Ministry of Municipal Affairs. It covers qualifications, financial obligations, candidate responsibilities and the roles of council and municipal staff.

Nominations can be filed as of May 1 and the deadline is July 27.

Community grant requests invited

As published in The Erin Advocate

As usual, the provision of grant money from the Town of Erin to community groups will get some intense scrutiny. This is quite proper, since it is public money, but the amount is very small compared to the Town’s overall spending.

The current plan is to give out $32,950, the same as last year, with the final amount and allocations to be set during upcoming budget debates.

A report last October from Finance Director Sharon Marshall, based on the work of a Grant Committee, recommended that almost half the money ($16,000) go to East Wellington Community Services (EWCS) to support the Seniors Program at Centre 2000.

Other local groups seeking funding for 2016 from the remaining $16,950 must apply by January 31. That amount represents about one tenth of one per cent (0.128%) of Town spending, budgeted in 2015 at $13.2 million.

It is only natural that people focus attention on smaller amounts. Most councillors and residents do not have the expertise to critique expenditures of hundreds of thousands of dollars on fire department equipment or bridge construction projects.

I don’t know when the law changed, but it was normal until the mid-1900s for major spending bylaws to be put to a public vote in Ontario municipalities. I wonder how that would work today? Unfortunately, we are down to a state where public input has become symbolic at best. Most people have no expectation of influencing public affairs.

But getting back to local grants, Council has adopted a policy that clarifies how applications are considered. A Grant Committee is appointed each year, made up of the Mayor, CAO, Economic Development Officer, Treasurer and one other Councillor. They review the applications and make recommendations to the full Council.

The maximum grant (except for EWCS) is $3,000. Each application should support the priorities of Council, and will be evaluated by the following criteria:

• Benefits the majority of Town residents

• Facilitates self-sufficiency and/or sustainability of the community organization

• Promotes volunteerism, participation and leadership development

• Promotes affordable, accessible, inclusive and diverse programs or services

• Fosters a healthy, safe and active community

• Provides new or complimentary programs or services

• Supports efficient and effective use of municipal resources and facilities.

The policy prohibits community grants to faith organizations, political groups, hospitals and other medical services, schools and government agencies.

A link to the policy and the application form is available on the home page of the Town website, erin.ca. Applicants will need to provide information on their plan, volunteer involvement, the organization’s goals, other funding sources, previous Town grants and current executive.

Applications for grants will be accepted from any individual, group, or organization operating on a not-for-profit basis, having a formal organizational structure, and providing local services, products, programs or initiatives.

Grants can be used for core operating funding, one-off events, special programming or small capital purchases.

The Town already provides some benefit to local groups by charging reduced fees for use of Town facilities. Council is planning to review its policy on waiving fees, but fees will not be waived as part of the community grants process.

Property tax rebates deplete Town revenue

As published in The Erin Advocate

When Erin politicians get tired of complaining about the property assessment system, which forces us to pay higher county taxes, they can turn their attention to a variety of other alleged injustices inflicted by the provincial government.

There’s the ever-popular “infrastructure deficit”, in which municipalities have built way more stuff than they could ever afford to maintain, especially with residents forever fantasizing about less taxation.

The Association of Municipalities of Ontario estimates that actually fixing all the roads, bridges, sewers etc. would cost $60 billion. If property taxes alone were to maintain existing obligations, plus eliminate this deficit, the AMO estimates that municipal taxes would have to increase 19% per year for 10 years.

So do we let some of our infrastructure crumble, and ultimately make do with less? Do we pay up through higher taxes and debt charges? Do we invite private enterprise to wave its magic wand? Like good Canadians, we’ll probably compromise and do a little bit of all of that.

Faced with a problem that cannot be solved within the term of one government, the province just chips away at it. They dole out infrastructure funding erratically and upload some of the costs previously dumped on municipalities, but it is never even close to enough.

Erin is at a disadvantage in this game, being labeled a wealthy community. We have low debt, high taxes and very little income from industry. We have lots of farms and natural areas, but the tax revenue they could generate is severely curtailed by provincial policy.

The latest complaints at the Erin council table have been about the 75% property tax reduction the Town is required to provide for qualified farmland (846 properties) and managed forests (117 properties), as well as a 100% exemption for 721 pieces of conservation land.

Farmland qualifies for the rebate if it is actually farmed, generating at least $7,000 in gross income per year. Farm residents still pay the regular rate on their homes, plus one acre, but obviously their fields do not use municipal services. With farmland values increasing faster than residential values, the Ontario Federation of Agriculture is lobbying for a larger percentage reduction.

The benefit used to be a rebate paid by the province and shared through income taxes. It started in the early 1970s when farmers were being hit hard by huge increases in the cost of education – another service not used by the land.

The Progressive Conservative government of Mike Harris did download many costs to municipalities, but it also assumed a greater share of education costs and took over setting education property taxes. These remain a much lower share than they once were, now just 17.2% of the Erin tax bill, with a 0% increase this year.

When Harris shifted the farm rebate to municipalities in 1998, provincial grants were supposed to cover the cost, but they now only cover about one third. Throughout Wellington County, that is lost local tax revenue of $25.5 million per year, at a net cost of $487 per household.

Finance Director Sharon Marshall estimates that if the province took back responsibility for the rebates and Erin could charge regular taxes on all property, the Town tax rate could decline by 11.6%.

Mayor Al Alls says city dwellers are reaping the benefits of protecting the water, air and local food production, but that the burden of supporting the system falls unfairly on rural municipalities.

“It’s a big hit on our budget ­– we’re paying for it,” said Alls, noting that a large share of electoral support for the Liberal government comes from large urban centres.

“The current provincial government doesn’t get their power from us,” he said at a recent council meeting. “Nothing’s going to change until that changes.”

Let’s not be too efficient in setting Town budget

As published in The Erin Advocate

There are lots of good things happening in the budget process upon which Erin town councillors have embarked, but there are some areas where caution and a bit more time are required.

Council members are getting along with staff and each other. Mayor Al Alls is working cooperatively with CAO Kathryn Ironmonger to make sure council business flows smoothly. There’s a positive atmosphere at the Town office, which is refreshing news for all concerned.

Staff have impressed council by presenting a pre-trimmed budget, including only the top priority projects that can be accomplished with a moderate tax increase. Instead of chopping away through five or six grueling budget meetings, the plan is to wrap this thing up in two sittings – a five-hour one last week and the second March 24 at 10 am.

Council has to decide what to add back into the budget, how much to borrow, how much to pull from reserves and ultimately how much to tax. The choices are important, but if they agree with the priorities in the plan set before them, relatively simple.

In considering new debt of $1 million, council was wise to request a report on debt ratios and servicing costs. They’re also thinking of pulling a million and a quarter from reserves, so they need to be confident that such a move will not create problems in the future.

In its key role of setting policies and priorities, council needs to ensure that debates over difficult choices happen at public meetings and that the public has adequate opportunity to understand and comment. Here are some suggestions to improve the current budget process:

Have a public meeting where people can comment on the operating budget, just as they appreciated doing on the capital budget. At the very least, don’t just present a slide show to explain the budget, then approve it the same day. Give them a couple of weeks to digest it and possibly appeal for changes.

Don’t schedule all two of the budget reviews and the final approval for daytime meetings. The most important issues should get some exposure at evening meetings.

Schedule budget meetings so that each department head can appear before full council to state their priorities and answer questions. Fire Chief Dan Callaghan and Interim Water Superintendent Joe Babin had other obligations and could not attend the meeting where their budgets were discussed. What if councillors were considering a change to one of those budgets and needed to know the implications?

With only two budget meetings, players are left out. Councillor Matt Sammut, who ran on a platform of fiscal responsibility, was away for the first meeting and Councillor John Brennan, the voice of experience from recent councils, will be away for the second. Having three or four shorter meetings could lessen this impact and allow time for comprehension and possible amendments.

Finally, council and staff should be careful with the use of “working groups”. These are private meetings of senior staff with the mayor and one other councillor. (Having three council members at a non-public meeting would violate the Municipal Act.)

Essentially, we have two out of five politicians present at what would normally be a staff meeting. This is not necessarily a problem. Discussing strategy on Town issues is beneficial, but there should never be even the appearance that final decisions are being made behind closed doors, or that staff being given clear direction by other than the full council.

These meetings have been used to discuss the fill bylaw and for preliminary cutting of departmental budgets and community grants.

Last week, Councillor Jeff Duncan objected when full council was asked to endorse the pared-down list of community grants without ever seeing it. The problem was quickly resolved, but it illustrates the need for traditional separation of duties: staff make recommendations and council gets enough information to make final decisions.

Perhaps working groups should be treated more like subcommittees, with clear terms of reference and a report with recommendations or options that full council could debate.

Erin’s aging water tankers bump fire insurance costs

As published in The Erin Advocate

Shopping for insurance is already an annoying ordeal. Discovering that you have to pay extra because your fire department’s tanker trucks are more than 20 years old makes it very annoying.

It’s a confusing business, since companies may offer highly competitive rates for some types of coverage while charging more for others. So-called “quick” quotes over the phone can turn into hour-long inquisitions about your house and driving habits. I gave up on two quotes from call centres when they wouldn’t call me back later.

My broker (who actually answers the phone) found me a deal with a new company that was going to save me many hundreds of dollars. But when I reviewed the details, it was based on having fire hydrant protection. I told her that I live in a rural area with no hydrants, but that I have the protection of tanker shuttle service.

Firefighters can set up a water reservoir at my house in the event of a fire, with two tanker trucks taking turns filling it up. The insurance industry considers this the equivalent of a hydrant for fighting a fire.

My broker tried to confirm that the Town of Erin provides this service, but found nothing. A phone call to the Town revealed the bad news: last year, Erin lost its Superior Tanker Shuttle Accreditation because two of the trucks are more than 20 years old. The trucks are working fine and providing the protection, but the service no longer qualifies residents for a better insurance rate.

“We are getting calls about this every week,” said Fire Chief Dan Callaghan. “Many residents have a 15% increase.”

This issue does not affect urban residents with hydrants. It applies to rural residents who live less than 8 km from a fire hall, by road. Those further away would not normally qualify for the insurance discount in any case, but check your policy, since company standards vary.

For “superior” accreditation, the one that counts for insurance, Erin Fire must demonstrate to Fire Underwriters Survey that they have the training and two qualified trucks to shuttle water to a test site. They must pump at least 950 litres of water per minute continuously for two hours, filling tankers from hydrants, ponds or the seven underground fire reservoirs in the area.

Erin has three tankers, with model years 1990, 1994 and 2009. In the past there was no fixed cut-off date, but council learned in 2013 that tankers over 20 could no longer be used for the test. In 2014, Erin’s accreditation slipped to “standard” when the second tanker passed the limit. An extension of the cut-off was possible if the Town committed to buying a tanker within an agreed time frame.

A new tanker would cost at least $250,000, but it is only one of the budget priorities that have been delayed. The department is still hoping to replace a 1986 pumper-rescue truck, which would cost twice as much as a tanker.

“Where it is on the list, council will have to decide, but they are determined not to keep passing the buck forward,” said Mayor Al Alls. Each department head has been asked to look at what can be cut in their budget and the current operational review may make additional recommendations about priorities.

Councillor John Brennan said the tanker purchase must be “weighed in conjunction with other pressing needs”. He said accreditation was a factor in 2014 budget discussions.

“Council did not make it such a priority as to be fully addressed in that budget for a variety of reasons and I'm not sure the short time frame of the impending loss of accreditation was fully understood.”

Good Guys create $500 fund

As published in The Erin Advocate

Members of Erin Town Council will each chip in $100 of their own money for a Good Guys Fund. It will help deal with minor cost issues that are presented to them, but which do not qualify for normal Town funding.

Councillor Jeff Duncan said it is a revival of an idea used by the former Erin Village council to deal with “worthy” endeavours in need of support. “It would not impact the Town,” he said, at the December 16 meeting.

Later in the meeting, councillors considered a motion to accept a tax exemption on one third of their salaries. This is “deemed to be expenses incidental to the discharge of their duties”.

Under a new system approved by the previous council, members earn $15,600 and the mayor $26,000, plus other eligible expenses. The one third tax exemption allowed on federal and provincial taxes is at no cost to the Town. Members only have to vote to accept it, which they did unanimously.

“I didn’t think there’d be a problem with that one,” said Als.

Callaghan fights conflict allegations

As published in The Erin Advocate

Two streets set for reconstruction

As published in The Erin Advocate

Town Council has approved a $257,301 bid from Steed and Evans Limited for the reconstruction of Water Street and Waterford Drive in Erin village.

Road Superintendent Larry Van Wyck said the work would start soon and take about three weeks.

Up to $300,000 had been allocated in the 2014 capital budget for the project, which will include removal, regrading and repaving of the road surface, and replacement of the asphalt gutters with concrete curbs.

Driveway entrances and areas behind the curbs will be restored to match the new roadway. Notices will be delivered to area residents in advance of construction.

No water supply upgrades are needed along these roads. If traditional sewer service were eventually to be provided, one half of the surface would need to be dug up.

Town of Erin maintaining healthy balance sheet

As published in The Erin Advocate

The Town of Erin got the stamp of approval from its independent auditor last week, with councillors receiving financial statements for 2013 that show a small deficit for operations, an increase in financial assets, a declining debt and capital assets totalling just over $50 million.

Financial assets totalled $7.2 million (M), with increases in taxes receivable ($2.9 M) and accounts receivable ($1 M). Investments were down by almost $1.5M, but most of that has been transferred to cash, which is at $2M.

Mayor Lou Maieron said it was “not a good sign” that penalties and interest on unpaid taxes were up by 7.5% to $354,000, suggesting people are having difficulty affording the taxes. Finance Director Sharon Marshall, however, said outstanding taxes remain in normal proportion to total tax revenue.

Various changes have affected Town finances, including reduced tax assessments for aggregate pits, which have placed a higher burden on residential taxpayers. Revenue from Ontario Grants continues to decline despite higher costs, and fewer building permits has cut into Other Income.

Fees and user charges accounted for $2.1M of revenue, while taxes brought in $5.6M. Major items on the expense side included $1.5 M for Administration, $1.1M for Protection (Fire), $3.9M for Transportation (Roads), $1.2 for Environmental Services and $1.6M for Recreation.

The operating deficit of $186,000 represents 1.9% of the total expenditures, which were $9.8 million. Long term debt, much of which is related to the new fire hall, stood at $2.9M – down from $3.2 at the end of 2012.

A separate statement for the Erin village Business Improvement Area (BIA) showed revenues of $42,000, including a Town grant of $6,500, special area taxation of $17,200 and withdrawal from reserves of $9,700. The BIA spent $23,000 on advertising and $30,000 on streetscape improvements.

The full set of statements from Chartered Accountants Robinson Lott & Brohman LLP of Fergus is available on the Town website, www.erin.ca, or on paper by request.

Blended tax hike comes in at 1.01%

As published in The Erin Advocate

The overall property tax increase for Erin property owners will be just 1.01%, thanks partly to a decrease in education taxes, according to Town Finance Director Sharon Marshall. For an average home assessed at $387,750, the increase is $44 per year.

Also helping homeowners is a revision in policy by Wellington County to change tax ratios, providing a slight reduction to the tax burden borne by residential ratepayers.

The County tax increase was to have been 2.2% but it is now 1.89%. The Town increase was originally calculated at 3.03%, but now is 2.97%. And the amount for schools, as set by the Ministry of Education, has declined by 4.24%.

The figures are in Marshall’s report to council, which was expected to approve the 2014 Tax Rate Bylaw on Tuesday night (after this week’s Advocate went to press).

Overall, the Town will collect $22.6 million, including $5.5 million for Town purposes (24.4% of the total), $12.5 million for County purposes (55.2%) and $4.6 million for Education purposes – all boards (20.4%).

For each $100,000 of residential assessment, owners will pay an additional $8.33 to the Town of Erin, an additional $12.14 to Wellington County, and a decrease of $9.00 for Education purposes. The total change compared to 2013 is an additional $11.47 per $100,000 of assessment.

The 2014 final tax bills will be mailed out to all Erin ratepayers, along with an explanatory pamphlet, during the last week of July.

Council passes budget, starts spending it

As published in The Erin Advocate

Erin Town Council passed its budget bylaw with no discussion last week, and then approved a series of spending proposals totalling $629,439.

All of the final changes to the $13.35 million budget were debated at the previous council meeting, so the bylaw was a quick formality with no members voting against it.

While spending is expected to increase by $6.1% this year, the amount to be raised through property taxes, $5.53 million, will be up by only 3.03%. The average property tax bill, for a property assessed at $387,750, will increase by $34 for Town purposes.

The Town only gets 24.4% of the local tax revenue, while the county gets 55.2% and school boards 20.4%.

Erin’s operating costs for 2014 are estimated at $8.77 million, down just slightly from last year, while capital expenditures will rise by just over $1 million to $4.37 million.

“The Town continues to commit to the renewal and improvements of our municipal assets and infrastructure,” said Finance Director Sharon Marshall.

Approval was done in a series of staggered resolutions, to enable Councillor Deb Callaghan to vote on the majority of the budget, but to step away from the council table and declare a conflict of interest on matters pertaining to the Fire Department and Operational Review, since her husband is Fire Chief Dan Callaghan.

The bylaw was passed early in the meeting, so council could deal with some tender approvals for budgeted items, all of which passed without opposition.

• $319,010 for replacement of the 1999 road grader,

• $29,877 for an autogreaser and an extended warranty on the grader,

• $40,943 for a one ton cab and chassis (Ford F450),

• $17,814 for an aluminum dump box,

• $83,909 for road dust suppressant,

• $85,819 for road surface treatment,

• $27,075 for a GMC Sierra Pickup, and

• $24,990 for a Development Charges Background Study.

Marshall also highlighted a number of other elements in the budget:

• $45,010 in grants to community groups,

• $64,245 for an Economic Development Officer,

• $602,683 to continue reconstruction of 17 Sideroad, from Trafalgar Road to the Second Line,

• Rehabilitation of Erin village streets, particularly Water Street and Waterford Drive, including catch basins, curbs, gutters and final restoration,

• Road surface treatment of the First Line to Lot 3, as well as Hilltop Road, Roman Blvd., Jane Street, Market Street, Wellington Street and Elizabeth Street in Hillsburgh,

• $190,000 for an Environmental Assessment on the Station Street Bridge and Dam,

• $52,800 to replace the ice plant condenser at the Erin Arena,

• $19,500 for partial replacement of the Centre 2000 HVAC equipment,

• Completion of major studies, including the Servicing and Settlement Master Plan (SSMP), an Operational Review, a Strategic Plan, a Green Energy Conservation Plan and a Water Supply & Distribution Report,

• $240,000 to replace 32 sets of Fire Department breathing apparatus to meet new standards,

• $501,213 to finish off the Hillsburgh Fire Hall, and

• $15,000 to restore the turf on Barbour soccer field #1.

County seeks better ambulance response data

As published in The Erin Advocate

County councillors remain in the dark about ambulance response times in their local communities, and will ask the Guelph-Wellington Emergency Medical Service (EMS) to provide more detailed monthly reports.

Erin Mayor Lou Maieron got unanimous approval last week for a motion to seek expanded data, with the request channeled through the Social Services Committee.

He said the service reports changed several years ago to show only district-wide average response times, instead of details for each municipality. EMS started stationing an ambulance 12 hours a day at the new Hillsburgh Fire Station last year, and the mayor would like to know if that has improved the service.

“Without the information, we’re sort of lost,” he said. “I’ve heard from my colleagues in the northern municipalities that ambulances are being pulled towards Guelph, leaving their communities a little bit vulnerable for ambulance service.” 

Seconding the motion was Erin Councillor Ken Chapman, who pointed out that the EMS website does not list the ambulance stationed part-time in Hillsburgh, or its schedule, as it does for other locations in the county.

“I have no idea when that ambulance comes into town or when it leaves,” said Chapman, noting his request last year for that information has not been answered. 

“I think that we are being ignored, that we are getting poor service if any service at all at times. When I see that there is more than one municipality that gets less than 24 hour a day service, that is not the way I think the people of Wellington County should be treated.”

The Ministry of Health standard is a response time of less than 15 minutes, 90% of the time. Based on all 18,380 calls in 2012, Guelph-Wellington had an average response time of 12.25 minutes, 90% of the time, according to their website.

“They homogenize it over the whole reporting area," said Maieron. "In a large urban centre like the City of Guelph, a focussed area with very little traffic time, you can generate some wonderful numbers. But when you’re dealing with the rural municipalities, the people on the outskirts, I don’t think the numbers are that good. The information is collected. It’s there. I’ve requested it numerous times in my four plus years on Social Services, and I haven’t received one piece of paper.”

Guelph Fire Chief Shawn Armstrong, the General Manager of Emergency Services including ambulance, could not be reached for comment. An EMS staff report last year said deteriorating response times have become “unacceptable” and urged Guelph council to hire 24 more paramedics and buy two more ambulances over the next four years. That decision has not bee made, but it would raise Guelph's costs by $1.4 million by the fourth year and Wellington County's costs by $950,000.

The communities of Guelph, Fergus, Mount Forest, Arthur and Harriston have 24 hour ambulance coverage from Wellington-Guelph EMS, under regular conditions, according to the EMS website. Drayton, Rockwood and Erin (Hillsburgh) have part-time coverage, plus support from neighbouring services.

Wellington North Mayor Ray Tout said he is concerned about ambulances being deployed away from his area at busy times, since it puts a greater strain on his fire department to provide initial response.

“We’re paying for an ambulance service,” he said, noting the $7.8 million contributed by the county, which covers 20% of the EMS costs. The City of Guelph pays 30% and the province 50%. “I guess what I’m asking for is communication, what services they provide, when they’re in our area. I’m not 100% sure the head office is being as up front with us as their staff is.”

Councillor Gord Tosh said while more information is needed, reports will not be identical to those in the past since they were previously generated by the provincial government. 

Wellington-Guelph EMS would not be providing call data from neighbouring ambulance services. Ambulances are dispatched into the Town of Erin from stations such as Acton or Caledon when they can provide the closest service.

Councillor Chapman said that with 12 of 15 ambulances staffed during the day, and 8 at night, “we don’t need more ambulances, we need more staff.” He added that the province should be able to supply detailed information about ambulance calls.

“They don’t want to give it to us, simply because it points out that we in Wellington County are not getting the service.”

Last year’s report by Stephen Dewar, EMS Chief for Guelph-Wellington EMS, said a growing population and the number of people with significant illnesses being discharged early from hospitals have contributed to an increase in the number of calls and the length of time ambulances are at those calls. Calls increased seven per cent per year in 2011 and 2012, well beyond the population growth.

The report said “patient outcomes” are being impacted by the fact ambulances are having an increasingly difficult time in hitting response target times. Those targets are laid out by the province, with the city setting compliance rates.

For the most serious calls requiring resuscitation, the province expects an ambulance to be on the scene in eight minutes or less. The city expects its ambulances to hit that target 65 per cent of the time, but they were actually only hitting it 63 per cent of the time.

“In 2014 we'll be looking to add more staff hours,” said Dewar. “We have some ambulances that aren't being staffed 24 hours a day. We'll also be continuing to try and use what we have as efficiently as possible.”

With files from Metroland News Services

Budget deliberations to start with 3% tax hike

As published in The Erin Advocate

Erin CAO Kathryn Ironmonger has directed Town staff to come up with an initial draft budget for 2014 based on a 3% tax increase.

That’s a big change from last year’s budget process, which started with a wish list budget requiring a 32% increase for the Town portion of the tax bill, which was whittled down to a 15% increase.

The first budget meeting is set for March 5 at 7 pm, with presentation of both an operating and capital budget. A public meeting, similar to one held last year, will also be held to explain the budget before it undergoes final changes and approval.

Council also hopes to approve for the first time a Five Year Capital Plan that schedules future major projects according to priority, without approving actual expenditures that are decided year by year.

Private money for bridges could be tempting

As published in The Erin Advocate

The Town of Erin should be wary of allowing a private firm to finance and maintain its bridges and other infrastructure. Eventually, however, it may be forced to go that route.

Municipalities have responsibility for bridges, but often cannot afford to repair and replace them. They must go begging for grants, which are subject to political whims and the occasional need to stimulate the economy.

A report released last month from the Ontario Good Roads Association (OGRA) and the Residential and Construction Alliance of Ontario (RCCAO) studied the bridges and culverts of Wellington County.

It estimates that over the next seven years, the county and its local municipalities will have to spend about $132 million for upgrades and replacements. That is $19 million per year, in 2011 dollars, not accounting for inflation. The annual cost should drop to about $11 million after 2020, but only after the massive current backlog of bridge work is done.

There are 635 bridges and culverts in Wellington, with the county owning 194 and local municipalities responsible for the rest. Erin has 48, including 9 bridges and 8 culverts that should be completely replaced by 2015, the report says, with an estimated life cycle cost of $8 million. The Town still has six bridges that were built between 1910 and 1920.

Sticking close to provincial policy, the report encourages the use of Alternative Financing and Procurement (AFP), also known as Public-Private Partnerships (PPPs or P3s).

“The recent positive AFP experience in Ontario should inspire partnerships to be developed with the private sector, the Ontario government, and neighbouring municipalities,” says the report, which will be reviewed by the Town.

“The AFP model brings together private and public-sector expertise in a unique structure that reduces the risk of project cost increases and improves project delivery schedule when compared with traditional project delivery methods.”

Not all AFP experiences have been positive, most famously the Brampton Civic Hospital about 10 years ago, when P3s were new. The auditor general later found that $200 million could have been saved if it had been a public project.

More checks and balances are in place now, but AFP’s still have two major financial drains. Private firms have to pay higher interest rates than governments to raise the required funds, and they have the right and obligation to make a profit. Can these be outweighed by entrepreneurial efficiency, while maintaining high quality? The federal and provincial governments say, “Yes!”

AFPs are attractive to governments because they get a fixed price with delayed payments, and technically are not borrowing as much. But the revenue stream still flows from the wallets of taxpayers. For bridges, the Town would have to make regular payments to the company doing the construction or maintenance.

The strategy remains hotly debated, with opponents citing studies that show higher costs. Part of the confusion comes from the difficulty in putting a value on the risks that are transfered to the private sector.

The Wellington report says most AFP projects are done on time or early, and with cost savings estimates ranging from 13 to 30 per cent. Savings are expected to come from reduced design, pre-engineering and construction management costs, and from bidder innovation and value engineering based on performance-based specifications. Taxpayers would be shielded from cost overruns, and an accelerated schedule could reduce financing costs.

The report also envisions a county-wide consortium of municipalities that would bundle their bridge projects into a long term contract – for example, a 10-year plan to design and build, or a 30-year plan to design, build, finance, operate and maintain.

There would certainly be economies of scale, but Erin would have to make long-term budget commitments. The Town would not control negotiation of the contract, and might not have as much control as it would like over how and when their bridge work is done.

The Town would have to do a Value-for-Money analysis for any type of AFP, and should question all the projected benefits and possible cost savings before making any commitments.

All the province has to do to promote an AFP system is to be stingy with their grants until municipalities get truly desperate, or to favour AFP-based projects in their funding decisions. If it becomes a choice of getting with the program or getting left out in the cold, it’s not really much of a choice.

Courier pay is great, but is it too much?

As published in The Erin Advocate

Is there anyone out there who would be willing to work as a Library Courier for, say, $24,000 a year? How about $34,000?  Any takers at $44,000?

I recently saw a Help Wanted ad from Wellington County for a Temporary Full Time Courier, at a salary range of $46,429 to $54,327. That is $23.80 to $27.86 per hour, for a 37.5 hour week.

Obviously, not everyone would qualify for such a job. One would need a high school diploma, be familiar with libraries, have a satisfactory driving record and have 1-2 years of courier experience.

The successful candidate will have to work unsupervised, lifting loads of at least 55 pounds, multiple times per day, including “pushing and maneuvering a cart full of library bins, and carrying bins up flights of stairs” and driving a van in all weather conditions.

It’s too late to apply for that job, but I mention it because I could not help but notice the contrast with another recent ad from our library system, seeking Casual Part Time Assistant Branch Supervisors, at a rate of $21.72 to $25.39 per hour.

For 10 per cent less pay than the courier, the assistant supervisor candidates are required to have a Diploma in Library Techniques, a year of work experience in a public library, strong computer, organizational and communication skills and experience planning and delivering programs to all ages.

They must be willing to work at different branches throughout the county, and can only expect about 20 hours of work every two weeks, including day, evening and weekend shifts. Both positions are on Wellington’s Non-Union Compensation Grid.

I asked Chief Administrative Officer Scott Wilson about the pay discrepancy. He said jobs are rated according to 13 criteria, which include the conditions of work.

“Assistant Branch Supervisors work in better conditions, while the courier is out driving in all sorts of weather,” he said. The pay for a job such as the courier’s can be bumped higher if the job is repetitive in nature.

The relative ratings are part of the Pay Equity system the county has used for many years, based on provincial guidelines.

“That’s the system that we have, though the results may seem a little out of whack,” said Wilson.

Many people these days have given up on staying informed about what the public sector is trying to accomplish, simply viewing it with scorn and resentment. They see it as separate world where the norms of common sense do not apply.

Personally, I do not paying a bit extra for public services, as long as they are of good quality. But we all live in a highly competitive marketplace, which should at least influence the public sector. Every employer, whether private or public, needs to be on the lookout for opportunities to save money.

It is not, however, just about the money. If our governments cannot at least maintain the appearance of careful spending, it undermines confidence in the entire system, and that is a dangerous slope for all of us.

Residents not impressed with Town budget process

As published in The Erin Advocate

Town officials were roasted by ratepayers last Wednesday at a meeting designed to get public input on Erin's 2013 budget. Those in attendance were unimpressed with a tentative tax hike of 17% in Budget Draft #2, even though it was down considerably from the 32% increase in Draft #1.

There were angry questions about cost overruns in the construction of the new fire hall, increases in administration costs, and the "embarrassing" condition of Erin's rural roads. Some were outraged that council agreed to give staff a 3% raise (phased in for a 2.25% impact in 2013).

"A 17.5 per cent increase for administration – that, to me, is just plain unacceptable," said resident Ford Ralph. "We can't afford these kinds of increases. We're all ratepayers. A bunch of us are retired, on fixed incomes, and we're not getting a 17.5 per cent increase in pensions to pay for the tax increases. If you're still working, most companies, if you're lucky, will give you two or three per cent."

He said it might be reasonable for Draft #3 to come in with a 3-4% overall increase, to allow some important initiatives to proceed.

The current plan is to maintain service levels, but the latest draft includes a hiring freeze and a 25% reduction of overtime, in all departments. New initiatives, and some capital costs, have been cut or deferred. Grants to community groups will be reduced 25% overall, though the amounts have not been decided, and the Erin Cinema program is to be cancelled, for a saving of $16,687.

CAO Frank Miele said was important to set aside money in the Administration budget for economic development initiatives ($35,000), since this could help boost the boost the commercial-industrial tax base and reduce the burden on residential taxpayers. Increased salary and benefit costs for the new CAO position also mean an additional $55,255 for Administration.

Treasurer Sharon Marshall explained that some new costs in the budget cannot be avoided, including $65,400 in reduced provincial funding, an extra $6,126 in conservation authority levies, plus an extra $136,971 in debt servicing and $190,000 in unexpected costs related to the fire hall. Combined with the lack of a surplus in 2012, these "non-discretionary" costs alone would bump up the tax rate by 14 per cent.

An average property assessed at $383,000 had a Town tax bill of $995 in 2012. The Town portion represents only 20% of the whole bill, with the County at 55% and Education at 25%. Draft #1 would have increased the Town portion by $323, while Draft #2 increases it by $170.

Some at the meeting promoted the concept of zero-based budgeting, justifying every expenditure instead of adding percentages to the previous budget.

Bruce Hood urged the Town to make better progress on improving the condition of gravel road, some of which are impassable in the spring.

"The status quo is not very good," he said. "I am embarrassed at the condition of our roads."

Matthew Sammut got a round of applause when he said, "It's as expensive as heck to live in this town, but  sometimes I ask, 'Can I stay in this town?' We live in very difficult times. We can't afford the bills we're getting, let alone the increases. You've got to slash, painful as it is.

"Clearly, numbers are getting out of control. It's a slippery slope – once you get on these paths, it can get worse year after year. As much as we have to fight hard to ensure that next year we have some fiscal responsibility, we have to ensure that the future for this town continues to show fiscal responsibility."

From Draft #1 to Draft #2, about $711,000 has been cut from operational costs. Some departments are below 2012 levels, but capital spending for the roads department was increased from $6 million to $7 million. That will be offset by $4 million in revenues, but the overall roads increase to be covered by taxes is still up by about $500,000.

 "You are the shareholders of the corporation," Mayor Lou Maieron told the crowd about 50 at Centre 2000. "We are trying our best to come in with a reasonable budget. I'm a believer in saving for what we want to do. We need money for roads and infrastructure."

Councillor Barb Tocher was in attendance, but Councillors Josie Wintersinger, John Brennan and Deb Callaghan were absent due to other commitments. The proceedings were recorded so they could hear the taxpayers' concerns.

There were complaints about the meeting format. Draft #2 was not available on the Town website prior to the meeting, so people prepared their comments based on Draft #1. Also, some of the figures on the screen were too small to read, and there was difficulty in hearing the staff presentations, since there were no microphones.

The full presentation from last week's meeting can be downloaded from the Town website, www.erin.ca. Members of the public can continue to provide input by contacting council members or CAO Frank Miele. Staff will be providing council with additional recommended changes. The next public deliberation of the budget will be the January 8 council meeting, at which time it could be approved.

County Councillor Ken Chapman used the occasion to launch an all-out assault on the town's Planning Department, saying it should be abolished. He echoed public comments made by Mayor Maieron in the past year, arguing that Erin could have all of its planning needs provided by the Wellington County Planning & Land Division Department, to which the Town already contributes about $200,000 a year.

"All told we are paying $345,000 annually for planning, of which $145,000 is not necessary," he said.
Planner Sally Stull was not at the meeting, but had included a warning in her section of the draft budget that Erin will need to allocate more planning staff and resources "to proactively manage and address upcoming development pressures".

Chapman asked if this was "the beginning of the empire being built". He asked whether a proposed $50,000 roads deficiency capacity study (not approved) was a "make work project for the planning department". He also was of the opinion that the department had caused "unnecessary delays" in the construction of the Medical Centre and Tim Horton's buildings.

Five year capital budget makes sense for Town

As published in The Erin Advocate

It is surprising that Erin Town Council has not yet adopted a process of looking five years ahead in allocating money for roads, bridges, buildings, water infrastructure, recreation facilities and major equipment.

They should heed the advice of their new Chief Administrative Officer Frank Miele (and Treasurer Sharon Marshall) and set a five year capital budget, moving the Town into a modern model of financial management.

"Five year plans are a mainstream in municipal government today," said Miele, at last week's council-staff working meeting – probably the last such gathering, since he has a new meeting process in mind as well.

"To some degree they are requested by the provincial government, whenever there are infrastructure projects. So I strongly recommend to council that we work towards approving not necessarily the actual amounts, but approving the concept of a five year capital budget process.

"I think it's a good opportunity for council to understand where we want to be heading. It provides a guide as to where most of our financial resources will be allocated."

Treasurer Sharon Marshall presented a five year plan to council last year, but only the 2012 section was approved.

"We've asked for some commitments in the future, to make a sustainable path," she said.

Of course, there has been forecasting for capital needs, with money being set aside in reserves for major expenditures. But for department heads, any project not approved in one year would have to be pitched again in the next year, and sometimes for many years.

There's a big difference between a project sitting on a wish list and a project that has been evaluated, debated and scheduled to be done in a certain year. Politicians will still have the option of moving things around in case of emergencies, but there will be less chance that essential work will be allowed to fall by the wayside.

Presentation of the first draft of the 2013-2018 Capital Budget last week effectively launched the 2013 budget process. Here are some highlights of what departments may purchase in the next few years.

General Government: $20,000 every year for hardware and software and $25,000 for a new roof on the municipal offices in 2015.

Fire and Emergency Services: In 2013, finishing the Hillsburgh firehall for $150,000, a firehall generator at $50,000 and replacement of a 1986 pumper truck at $235,000. In every year there would be vehicle replacement costs from $200,000 to $320,000.

Roads: In 2013, $136,000, the first of five equal installments for a bridge on Winston Churchill, $375,000 to replace a Cedar Valley culvert, $175,000 to reconstruct part of 17 Sideroad (more to be done each year), $59,000 to resurface part of 1st Line and $318,000 as the first installment in a three year plan to pulverize and resurface 2nd Line.

Bridge replacements include Station Road for $2.6 million in 2014, on 4th Line for $664,000 in 2015, on 8th Line (at 17 Sideroad) for $860,000 in 2016, and on 2nd Line for $532,000 in 2017. In 2013, two graders to be replaced at $300,000 each. In 2017, a new salt shed at $316,000.

Water: In 2013, the Hillsburgh pumping station is expected to cost $760,000, while repairs, upgrades and re-coating of the water tower (interior and exterior) will cost $280,000. Well house replacement and improvements in 2014 are set at $450,000.

Environment and Planning: a possible $100,000 per year for the next three years related to the Servicing and Settlement Master Plan (SSMP), and in 2014, a $50,000 Traffic Pattern Study.

Hillsburgh Community Centre: Replacing the second half of the hockey boards for $75,000 in 2013, a new score clock for $12,000 in 2014, refrigeration upgrades for $115,000 in 2015, a new ice resurfacer for $90,000 in 2016, and structural upgrades for $89,500 in 2017.

Erin Community Centre: Heating, ventilation and air conditioning upgrades are planned at $30,000 for each of 2014 and 2015, plus $90,000 for new arena lobby flooring in 2015. The tennis courts may need resurfacing at $40,000 and repaving the Centre 2000 parking lot could cost $75,000, both in 2014.  A publicly accessible playground could cost $100,000 in 2017.

Hillsburgh Parks: Night lighting on an additional soccer field – $80,000 in 2013, paving the driveway and parking lot – $75,000 in 2016, and ball diamond night lighting – $80,000 in 2017.

Low attendance could shut down Erincinema

As published in The Erin Advocate

Erincinema could be coming to the end of its reel, due to low attendance and the projected cost of upgrading its equipment.

"Our movie program has had very low or limited success since its inception," said Facilities Manager Graham Smith, in a report to councillors last week. At some recent screenings, there have been only five people in the theatre. And there were no complaints when the program was closed for the summer.

"If there's no participation, you're going to lose the cinema," said Mayor Lou Maeiron. "Use it or lose it."

Treasurer Sharon Marshall said the Town-backed venture has never broken even since it showed its first movie on March 8, 2002. The Town loaned it $38,400 to buy projection equipment in 2002, from the proceeds of selling the old Erin Hydro utility, and the money was repaid over seven years with cinema revenues and a Hydro One grant of $5,000.

Deficits have risen, however, and Erincinema is projected to lose $18,000 this year.

"Our prices are competitive, however we are always three to six weeks behind the bigger theatres on our titles," said Graham. "Going digital may give us better opportunities to get more up to date films earlier."

Like all theatres, Erincinema is competing with online movie services. By the end of next year, movies will no longer be produced on 33mm film, so the Town is facing an estimated cost of $45,450 for a digital projector. Council may not support that purchase for the 2013 budget.

There have always been problems with the acoustic quality, but that is related to the design of the theatre, not the sound equipment, said Graham. The Town is looking into the possibility of installing panels that would improve the sound quality for all theatre events.

Mayor takes heat after forgetting party emails

As published in The Erin Advocate

Mayor Lou Maieron came under scathing criticism at last week's council meeting, after he said he had forgotten about an email informing him in advance about a taxpayer-funded retirement party held in April.

In a June 5 report, the mayor said he had been unable to answer taxpayer questions about a party for former Town Manager Lisa Hass. "Please explain how $5,000 of taxpayers' money was spent on this celebration without Council approval? Without the mayor knowing at all, until he signed cheques?" he wrote, and concluded, "Other than being invited and asked to bring greetings as the Mayor, I was not involved or consulted in this at all."

But an email from three months earlier, from the mayor to Treasurer Sharon Marshall, addressed as Personal and Confidential, was published with the council agenda last week. On March 5, the mayor asked about the planned party:

"Is funding for this coming out of the employee social fund or will it come from the 2012 budget? ...just getting the information as I know I will be asked the Q's...Lisa deserves a wonderful retirement send off. But like anyone else, she had her friends and her foes, and her foes will ask the tough Q's. Being prepared is the good boy scout motto."

Marshall responded the next day, "We do not have a formal, consistent 'party' policy. The scale – and therefore 'costs' – are tailored to the person retiring. The taxpayer pays the cost of any function run by staff – including retirement parties...Where does this end up in a budget? The costs are allocated to "admin misc" if it is for an admin staff (as Lisa is)."

At last week's meeting Maieron said, "I honestly forgot about those two emails."

Councillor John Brennan told the mayor, "The whole thing troubles me. I don't think you handled this as well as you should have. Your report was fraudulent – it wasn't true...I can see why staff would see this as a personal attack.

"You didn't bring forward concerns when you had ample opportunity. The June 5 report was misleading."

Maieron said he had not been misleading, but just forgetful. He complimented Administrative Assistant Connie Cox for doing a great job on the party, but said he had been unaware of the traditions involved and maintained his right to question the cost and lack of clear policy.

Councillor Barb Tocher said staff acted properly and that Maieron could have got more information through discussion with them before launching his public protest.

"You talk about being clear and transparent...but it seems to me you were not doing your homework," she said. The mayor could have suggested the need for a celebration policy, "but the rest of the gobbledygook in that report didn't need to be there."

Council did vote unanimously to have staff work on a celebration policy.

In his latest report to council (submitted in July but deferred to August), the mayor suggests that the three "lady councillors" should not have discussed the retiree's gift. Cox had asked Tocher for advice about the gift, and whether the mayor should be consulted.

Tocher said she later had an informal conversation in the hallway with a councillor about the gift, and that a third councillor walked up and joined the discussion. She said there was no intent to meet behind the mayor's back, but that she was under no obligation to report the conversation to him or the full council.

"These types of non-transparent, un-accountable actions need to stop now," said Maieron, suggesting that the councillors' conversation "could be considered an improper council meeting". He said that it effectively bumped up the value of the gift from the 25-year long-service award level of $250, to a final amount of $676.

The appropriate gift amount is unclear, however, since what Cox called "very extravagant" gifts had been given to retiring department heads in the past. The gift for Hass was a single retirement gift, with the $250 long-service award amount applied towards it. "This enabled me to purchase a suitable gift for Lisa's status without overspending," said Cox, in her June response to the mayor.

In his last report, the mayor says that some taxpayers "state that there seems to be a sense of entitlement and subterfuge in how this event came to be".

Treasurer Marshall says that all the invoices were properly processed as per the Procurement Bylaw, and paid out of amounts designated for celebrations in the budget approved by council.

Councillor Deb Callaghan apologized to staff who were embarrassed by the controversy. "Staff did follow policy. I don't think staff did anything wrong, and there was no intent to mislead council or the public."

Councillor Josie Wintersinger said, "There were errors on both sides to some degree. We'll all take some of the blame and move on."

Maieron summed up the situation in his opening comment of last week's debate: "It's too bad it turned out this way."