Tag Archives: budget

Council Agenda Preview – September 5, 2017

05 Tuesday Sep 2017

Posted by in Budget/Financial, Parry Sound, Town Council

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This evening’s agenda is pretty light in terms of issues but there are a couple of proposed expenditures that are worth looking at a little closer. Item 9.1.2 concerns a new Public Water Tap that is budgeted at $50,000. I see no issue with this new amenity that is largely targeted to non-Parry Sound residents, residents can just get water at home, but I do have an issue with the proposed funding. The suggestion is that the cost be taken out of the Tax Rate Stabilization Reserve. This Tax Rate Stabilization Reserve is becoming a bit of a slush fund for municipal expenses. I don’t see why this expense can’t wait for the 2018 Budget process and be included, or not, in next year’s budget. The Tax Rate Stabilization Reserve is intended to manage the ups and downs of reviewed and approved budget expenses. Let’s not start dipping into this reserve to deal with issues unrelated to rate stabilization. Honey, the new Play Station just came out, the kids will love it. Can I use some of their university funds to pay for it? Reply: can’t it wait until Christmas when we will have saved up for this type of expense and decide if it’s what the kids really want?

The second budget related item is 9.2.3, Stockey Centre repairs in the amount of $850,000. Staff is requesting that the budget for the project be increased from the approved $700,000 and be paid for with a larger debenture. I guess it costs what it costs, but had Council known it would be this much would there have been some additional cuts when discussing the 2017 budget? And a comment on the proposal to save $10K by only putting Ice and Water Shield on the valleys and troughs. Suck it up and pay to have the whole roof done. That 35-year manufacturer’s shingle warranty isn’t worth squat; we will be lucky to get 15 years. If you won’t spring for a metal roof, at least make the best out of shingles with a full coverage of Ice and Water Shield.

Lastly, the Town is looking at selling property proximate to Canadore College. You can see the 1.5 acre lot in the image below. The sale is probably a good idea to stimulate a bit more development at the north end of Town. I hope that the proceeds of the sale will not simply be put into a slush fund. It’s too easy to cover a spending ‘problem’ by dipping into slush fund reserves and taking out debentures. It’s the same as a consumer taking on credit card debt and a home equity loan to handle what should have been saved for. It just delays the expenses and increases the cost. But it’s ‘less painful’ for some, including politicians, than exercising some self control and saying “No!”.

Closed Session Agenda Topics

  1. a) the security of property of the municipality or local board. (Potential Development Project), (Audit Questions of Council), (CP Station)
  2. b) personal matters about an identifiable individual, including municipal or local board employees (Local Board)

(c) a proposed or pending acquisition or disposition of land by the municipality or local board; (Request for Proposal)

Correspondence

4.1 – Letter from Wendall Fisher, Resident. Town’s initiative to have a report prepared regarding the cessation of train whistling at the five crossing. Mr. Fisher is not in support of this.

4.2 – Letter from Thomas Buttineau, McDougall resident. Concerns with used needles surfacing at the local beaches and playgrounds and requesting support from Parry Sound to open a Treatment Centre.

Deputations

5.1 – Giselle Bodkin, CPA, CA, BDO Canada LLP, Parry Sound’s Auditor. Re: Year End Report for The Corporation of the Town of Parry Sound

Consent Agenda

8.3 – Special Meeting of Council – Staff Succession Planning. Resolution. That ______________________ at 6:00 pm be scheduled as a Special Closed Council meeting for the purpose of staff succession planning; and That Resolution 2017-139 be rescinded.

Resolutions and Direction to Staff

9.1.2 – Public Water Tap. Resolution. That Council approve the installation of a public water dispensing system adjacent to the existing commercial bulk water station located on Parry Sound Drive, and further; That Council authorize the transfer of up to $50,000 from the Tax Rate Stabilization Reserve to finance the project.

9.2.1 – Report to commence closure of portion of Parry Sound Drive road allowance. Direction. That staff commence the procedures to stop up and close, appropriately rezone and dispose of a portion of the Parry Sound Drive road allowance.

9.2.3 – Tender – Stockey Centre Phase II Roof Repairs and Siding Replacement. Resolution. That Council accepts the tender from W.S. Morgan Construction Ltd. in the amount of $888,180.00 including HST for roof repairs and siding replacement at the Charles W. Stockey Centre for the Performing Arts and Bobby Orr Hall of Fame, this being the only tender received; and That the budgeted debenture be increased to reflect the tendered amount.

9.5.1 – Approval of Consolidated Financial Statements for the year-ended December 31. Resolution. That Council for the Town of Parry Sound does hereby approve the Draft Audited Consolidated Financial Statements for the year ended December 31, 2016 as attached in Schedule “A”.

9.5.2 – Financial Variance Report for Q2 (June 30, 2017). Resolution. That Council hereby receives and accepts the Financial Report for Q2 2017 (June 30, 2017) attached as Schedule “A”; and Further that Council hereby approves the expenses for members of Council for the period January 1, 2017 to June 30, 2017, attached as Schedule “B”.

By-laws

10.2.1 – Site Plan Amendment – M2 Developments Inc. – 12 College Drive. By-law 2017 – 6765. Being a By-law to authorize a Site Plan / Development Amending Agreement between the Town of Parry Sound and 12 College Drive (M2 Developments Inc.)

10.5.1 – Execution of Agreement with Collection Agency. By-law 2017 – 6766. Being a By-law to authorize the execution of a Customer Retention and Collection Services Agreement between A-1 Credit Recovery & Collection Services Inc. (“A-1CRCS”) and the Corporation of the Town of Parry Sound.

I won’t be at tonight’s council meeting. I figure my time is better spent digging a little deeper into the council package.

Council Agenda Preview – February 7, 2017

04 Saturday Feb 2017

Posted by in Parry Sound, Town Council

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Good news for those of you wanting to keep on top of what’s on the Town of Parry Sound council’s upcoming agenda; the agendas seem to be coming out on Thursday, rather than Friday. This provides people with an additional day to provide comments to Staff and Council on items on the agenda, or organize a deputation on an agenda item. But you need to be on the distribution list to get it delivered to your mailbox. Contact the Clerk at the Parry Sound Town Office to be included.

It seems to be business as usual with a hodge-podge of items on this week’s agenda. Among the more interesting items:

  • There seem to be multiple parties interested in the Old Fire Hall (5.2).
  • Activity seems to be developing activity with regard to having railways pay municipal taxes commensurate with their business activities and local community impact (8.4).
  • Treetops is back on the agenda (6.1).
  • Big Sound Marina operating agreement is up for renewal (10.1.1).
  • 2017 Budget and associated rates and policies (10.4.1, 10.4.2, 10.4.3).

As always there is more on the agenda than is noted above and below. Comments on individual items are offered below (italics). Review the full agenda with the supporting documents for more information. You can try and find it one the Town’s website or you could get it directly through this link.

Closed Session:

  1. c) a proposed or pending acquisition or disposition of land for municipal or local board purposes. (Property Matter)
  1. e) litigation or potential litigation, including matters before administrative tribunals, affecting the municipality or local board. (Zoning By-law Amendment Appeal)

Correspondence

4.1 – Kevin Baker, Harold’s Barber Shop. Re: Concerns about the rates for his installed water meter.
Commercial water rates continue to be a source of confusion. It’s basically a cost of doing business, or living, in Parry Sound; an underappreciated tax of sorts. The alternative is to set up shop in Nobel or McKellar and see how that impacts the bottom line. Taxes there are lower and you get to provide your own water and sewer.

4.2 – Stephen P. Kaegi, CAO, The Township of The Archipelago. Re: Letter addressed to Transport Canada, Marine Office and copied to Mayor and Council. Questions about the proposed operational restrictions of the Wasauksing Swing Bridge.
A pressing issue that doesn’t directly impact Parry Sound, the proposed restrictions on the operation of the bridge will impact Wasauksing and our neighbouring municipalities. Who is responsible, and who is going to pay for a new bridge, the obvious solution to the issue? Perhaps our rich neighbours can find room in their budget for the improvement, but that would of course negatively impact their low, low tax strategy.

4.3 – John Maheu, M.A.Sc., P.Eng., Executive Director of the Association of Ontario Road Supervisors. Re: Congratulations to Peter Brown, Director of Public Works, for his recent Certified Road Supervisor certification.
Does this mean Mr. Brown is now qualified to be a flag person at a road construction job ;-)

Deputations

5.1 – Brad Weiler, Community Recreation and Programs Coordinator. Re: Update to Council on Community Recreation Programing.

5.2 – Aleesha Mullen, Owner/Operator Parry Sound Bikes. Re: Review of her proposal submitted for the Old Fire Hall.
I suspect that this will be a more acceptable proposal, assuming the offer price for the property meets the Town’s expectations. It will cause less ‘after 6:00’ traffic in this semi-residential area which is a concern to local residents. Both this proposal, which I imagine is a bike shop, and Maurizio’s restaurant, are reasonable uses of the property. Let’s just make sure the building isn’t lost through neglect. What’s up for sale next? The CN Station? The Town really doesn’t have the resources or interest in fixing up and using, or renting out, either of these buildings.

5.3 – Debbie Hill, President of CUPE #2049. Re: Update to Council on the status of the CAS lock out of CUPE #2049.

Consent Agenda

8.3 – Funding Formula for Gas Tax, Resolution. Whereas the provincial gas tax funding formula has not received an increase in over 10 years, since 2006; and Whereas with the implementation of Cap and Trade January 1, 2017 it is more expensive for municipalities consuming the fuel; and Whereas the City of Owen Sound adopted a resolution to send a letter to the Minister of Transportation, the Honourable Steven Del Duca, stipulating these facts and requesting that the formulas be revisited; Now, therefore be it resolved that the Council for the Town of Parry Sound supports the City of Owen Sound and will also send a letter to Minister of Transportation to request a review of the gas tax; and Further that this resolution be forwarded to the Association of Municipalities of Ontario, the Federation of Northern Ontario Municipalities, Norm Miller, M.L.A. for Parry Sound-Muskoka and all Ontario municipalities.

8.4 – Property Taxation on Railways. Resolution. Whereas it has been identified that railway companies in the province of Ontario, do not pay a proportionate share of municipal property tax as compared to other properties in their class, or compared to any other municipal tax class; and Whereas in other provinces and jurisdictions the railway companies do remit a more equitable share of taxes to the local tax base; and Whereas taxes in other jurisdictions for railway properties are calculated using a tonmile concept; and Whereas said fees are reviewed and adjusted on a regular basis according to inflation and ongoing current conditions; and Whereas the Province of Ontario has continued to fall further and further behind in their approach to railroad property taxation over the past 112 plus years; Now, Therefore Be It Resolved That the Town of Parry Sound supports the Resolutions passed by Fort Frances, Atikokan and Marathon and calls upon the Minister of Finance for the Province of Ontario to implement a new system of municipal property taxation for railroad right-of-way properties based on utilizing a per ton-mile concept; and Further that this resolution be forwarded to the Association of Municipalities of Ontario, the Federation of Northern Ontario Municipalities, Northwestern Ontario Municipal Association, Norm Miller, M.L.A. for Parry Sound-Muskoka and all Ontario municipalities.
Yup, the railways get a ‘free ride’ from the Feds and the Provinces at the expense of local municipalities. As the Province pulls back local funding, the Municipalities need to look for alternative sources of revenue. The highly profitable railways need to start paying their fair share.

8.6 – 2016 Integrity Commissioner Report. Resolution. Whereas the Council, Boards and Committees Code of Conduct stipulates that the Integrity Commissioner shall file his/her annual report regarding any activities to Council no later than March 31st of each year; and That should there be no complaints/investigations for the year, in this case, 2016, then the Clerk shall report to Council accordingly; Therefore, the Clerk reports that the former Integrity Commissioner, Suzanne Craig, and the current Integrity Commissioner, George Rust-D’Eye have reported that there were no formal complaints filed nor investigations conducted in the year 2016.
No hits, no runs and no complaints. Call it a win.

Resolutions and Direction to Staff

9.3.1 – Bill 68, Modernizing Ontario’s Municipal Legislation Act. Resolution. That Council for the Town of Parry Sound acknowledge receipt of the attached Report and Recommendation regarding changes to the Municipal Act and the Municipal Conflict of Interest Act by the introduction of Bill 68, Modernizing Ontario’s Municipal Legislation Act.
The closed session changes in this legislation really don’t do much to ensure additional transparency. The simple action of having a “closed meeting investigator” does not make me more comfortable. The investigator can only review what is officially recorded in the closed meeting minutes, which of course does not necessarily reflect all of the discussion. I don’t question the integrity of Council; I do question whether the Public gets the benefit of all discussion and concerns that may be expressed in closed sessions that should be shared in open sessions.

9.4.1 – Ontario Regulation 284/09. Resolution. That Council hereby adopts the compliance report for expenses excluded from the 2017 budget outlined in the staff report “Ontario Regulation 284/09”, attached as Schedule “A”, as a requirement of Ontario Regulation 284/09 passed under the Municipal Act, 2001.

9.4.2 – Vacancy Tax Rebate Review. Direction. That Staff initiate the required consultation process for the modification or elimination of the Vacancy Tax Rebate, as outlined by the Ministry of Finance (once available).
This is an interesting rebate program that provides commercial property owners with an effective 30% reduction in property taxes if the property is vacant. This can lead to landlords preferring to leave a property vacant rather than use it, or rent it out. Because of provincial legislation the Town has the opportunity to redefine its local policy in this regard. The Town intends to engage with the community to understand how Parry Sound should define it’s vacancy rate policy.

9.4.3 – Co-location of Lakeland Power Customer Service. Direction. That Staff work with Lakeland Power to develop a co-location agreement which includes the redesign of the front reception office and that staff attain the services of an appropriate consultant to advise on the redesign.

9.4.4 – 2017 Parry Sound Public Library Budget. Resolution. Whereas S.24(1) of the Libraries Act requires that the Parry Sound Public Library provide its annual budget to the Council of the Town of Parry Sound; And Whereas S.24 (2) of the Act provides Council the ability to approve, reject or amend the budget; Now Therefore be it resolved that the 2017 budget for the Parry Sound Public Library, attached as Schedule “A”, is approved.

9.6.1 Request for Donation to the Treetops Community Forest. Resolution. That Council hereby will provide a grant of $____________ to the Treetops Community Forest to be funded from the 2017 Budget; and That the direction passed January 10, 2017 be amended to include the above addition.
I recall that when the project was first brought before Council there was a ‘promise’ that the project would not require funding from the Town. Well here we are with an ask for $10K. It’s hard to oppose the ask, but somehow I feel as though we been ‘duped’. I’m sure there was never an intention to come back to Council for money, but that’s too often the case with poorly planned projects. Better to ask for funding and forgiveness after reality sets in.

By-laws

10.1.1 – Extension of Agreement – Massasauga Management Co. Inc. – Big Sound Marina. By-law 2017 – 6704. Being a By-law to amend By-law No: 2014-6428, the operating agreement between Massasauga Management Co. Inc. and the Town of Parry Sound for operation of Big Sound Marina and the Town Dock, conditional on the Department of Fisheries and Oceans Canada approving the operating agreement and the extension of a head lease between the Town and Department of Fisheries and Oceans or the completion of the divestiture process.

10.1.3 – Rezoning Application – Z/16/07 – 25 Mary Street – Old Fire Hall. By-law 2017 – 6706. Being a By-law to amend By-law No. 2004-4653 (The Zoning By-law), as amended, for 25 Mary Street (Old Fire Hall).
Staff recommends approval of the rezoning application.

10.4.1 – Tax Policies – Capping and New to Class / New Construction. By-law 2017 – 6707. Being a bylaw to specify our Tax Policies, including the claw back percentage, the capping threshold parameters, the minimum tax level for new to class / new construction and to exclude certain properties from the capping program for the year 2017.

10.4.2 – Tax Ratios for 2017. By-law 2017 – 6708. Being a by-law to set Tax Ratios for Municipal purposes for the year 2017.
Staff is recommending that the Town adopt the same ratios as last year with the understanding that while they seem to be in-line with other municipalities in Ontario they are outside the Province’s ‘range of fairness’.

10.4.3 – 2017 Budget. By-law 2017 – 6709. Being a By-law to Adopt the Operating and Capital Budget Estimates for the Year 2017.
No surprises here. I recommend reading the accompanying R&R in the Council Agenda Package to get a nice summary of the 2017 Budget and the factors that impact how it will play out for individual commercial and residential property owners.

10.4.4 – Scale of Cost for Property Tax Sale. By-law 2017 – 6710. Being a bylaw to establish a policy and scale of cost for the sale of land for tax arrears pursuant to Section 385 of the Municipal Act, 2001, c25.
This is an update to 1998 legislation and increases the fees payable to the Town.

Lonely Buoy

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Budget 2017 – Draft By-law

31 Tuesday Jan 2017

Posted by in Budget/Financial, Parry Sound

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Last week saw the publication of the draft by-law to adopt the Parry Sound operating and capital budget estimates for 2017. It’s 122 pages of goodness for those of you who are interested. I plan to spend a couple of hours going through it for no other reason than to find typos and torture our Director of Finance & POA Court Services ;-)

Actually, I prefer this format for focusing in on the details. Don’t expect any comments or revelations in future posts. They would only be of interest to those who are interested in the budget, and I suspect they are already on staff or members of Council.

You can find the by-law at the Town’s website, or you can use this shortcut.

The Mid-January Fog Has Finally Lifted

redwood1890-20170121-dsc_1701

Budget 2017 – Big Plans

19 Thursday Jan 2017

Posted by in Budget/Financial, Parry Sound, Town Council

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While the 2017 Budget is largely in the can, there are a few financial related issues that may be of interest to Town of Parry Sound ratepayers. In addition to the capital budget items defined in the 2017 Budget, the budget meeting on January 10th also unveiled some longer range capital expenditure possibilities. Possibilities is probably the best way to describe these capital expenditures. There is no agreement that these investments will be made, and if they are, there is no firm commitment as to when they will definitively arrive.

The table below is taken from the January 10th budget meeting.

parry-sound-projects-p-3-2017-01-10

A few initial thoughts on the planned expenses.

BOCC Floor Replacement: Likes roads, facilities need ongoing maintenance and from time to time major investments. That’s why ice time isn’t free.

Champagne Street: This may be related to plans for future development in the area, whether or not it is a casino. The street is so short that it’s hard to imagine it would cost $1.5 million to refurbish the street for it’s current users. This would be a major artery servicing a casino or a condo development.

Property Purchase: $4 million, hmmm! I wonder where this might be. My sense is that it would be on the waterfront area between the Town Dock and Big Sound Marina. There are rumours that the OPP are planning a new facility off of the 400, and perhaps Service Canada and the MNR people are planning to leave. That might mean the Town has to come up with some cash to purchase the land so that these organizations can afford new facilities. But it’s only a guess. I don’t think that it relates to the former Shell or imperial Oil properties on the other side of the harbour, but its only my best guess.

Parry Sound Road Extension: The connection to Oastler Drive (Old 69). This seems to be a critical element in the Town’s strategy to open up the south east side of Town for future development. It would be the major access route for a casino, and/or and Innovation Park, and/or industrial development of the properties on the Seguin side of the road that have made overtures to join Parry Sound. At the very least it will keep the Fowler salt trucks off Bowes Street.

Great North Road: This is the stretch of road between Bowes Street and Champagne Street. It’s due for an update/upgrade.

Innovation Park: This is a project discussed in general terms at an open meeting earlier in 2016. I understand that it would be located on Parry Sound Road across from the Weeks facility, another reason for the Parry Sound Road extension.

There you have it, the near term thinking of the Town Council and Staff with regards to the the next phase of capital investments. Add up the figure and these investments are likely to add an additional 11% or so to your tax bills by 2021. It’s possible that the impact will not be so great if some of the older debentures are paid off in the interim. Add to that another 1.8% per year increase for the Infrastructure Reserve fund and you could be looking at 2021 Parry Sound taxes being about 20% higher than the 2017 tax levels. Add in a lowball estimate of a 2.5% annual increase for the usual inflationary and service improvements and you are looking at your tax rising by about 30% over the next 4 years.

The chart below is from the January 10th presentation and summarizes the projected changes in the Town’s annual debt servicing costs if the proposed projects are undertaken.

parry-sound-debt-p6-2017-01-10

All of this suggests that the Town may be looking at a casino development as the answer to it’s continually increasing taxes. (Seven comes eleven, baby needs a new pair of shoes, or in our case roads). Right now Parry Sound pays about 3 times the municipal taxes of Seguin and Carling on an assessed value basis. That may stretch to a 4 times figure by 2021.

If you have any thoughts about where this is headed you may want to speak to Council.

Here is a link to the full January 10, 2017 presentation.

Budget 2017 – The Principles of Sausage Making

14 Saturday Jan 2017

Posted by in Budget/Financial, Parry Sound, Town Council

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A bit of this and a bit of that, throw it into a grinder, add a bit of spice to mask things, and squeeze into casings. Yum. Tastes great, even if it seems a bit pricey. But, don’t ask about exactly what it’s made from – you really don’t want to know.

Parry Sound Council this past week reached agreement on the details of the 2017 Budget. As discussed in an earlier post, Council managed to find ways to hit the low end of the original budget target. That still means taxes will be up about 5% or more for most residential properties, but it quite easily could have been higher.

What’s In?
The budget included a number of new initiatives as well as some older issues that couldn’t be put off any longer. What’s in includes:

  1. Funding for an Economic Development Officer for a three year period. Council seemed very upbeat with respect to a candidate they had identified to take the position. ($75,000/year annualized, contract salary and marketing materials)
  2. Funding for a Recreation Programmer, permanent full-time. ($84,000, annualized staffing and program delivery costs)
  3. Funding for a tourism intern. ($12,000, staffing and materials)
  4. Repairs to the Stockey Centre roof. ($700,000 to be debentured)
  5. MADVAC, a vacuum cleaner on wheels for the downtown. ($60,000)
  6. Repairs to the retaining wall at Louisa/Bowes Street. ($160,000, from reserves)
  7. Human Resources position increased to five days per week.
  8. Parry Sound Road extension feasibility study. ($100,000, from reserves)
  9. Great North Road design. ($900,000, from reserves)

What Not?
Some expenses were cut and others were reduced. Here are the more notable cuts and/or reductions:

  1. Cut – Repairs to the Old Fire Hall. (more on this below)
  2. Cut – Staff position and resources to expand hazardous waste collection and disposal. ($68,000)
  3. Cut – Isabella Street sidewalks and water services upgrade.
  4. Reduced – Waubeek Street revitalization limited to Avenue Road to Prospect Street, including Prospect Street and the services to the Coast Guard Station.
  5. Reduced – Downtown facade improvement program reduced to $25,000 for 2017.

Old Fire Hall
An Old Fire Hall revitalization was originally budgeted as a $250,000 expense for 2017 (debentured). In the closed session of council on Tuesday the decision was apparently made to sell the Fire Hall. It makes sense, the building is in serious need of repair and as such really doesn’t provide any value as is for the Town. There was an earlier suggestion that the Town would renovate the hall and then lease it out, probably for a restaurant type use. Instead of paying for repair and renovation and then hoping for a lessee, the decision is to sell the hall. I’m not privy to the business case but it makes sense.

What is a little worrying is the Town’s reliance on selling land and properties to cover the cost of normal operations. In the past five years the Town has sold Parry Sound Power, lots on William Street, the Old Pump House and other smaller properties. This year we will be selling the Old Fire Hall. What’s next? What has become of these funds? The millions we received for Parry Sound Power were put into a reserve and to the best of my understanding has been siphoned off bit by bit. One million of that reserve is earmarked for design and engineering plans for Parry Sound Road and Great North Road. I’m told that it is effectively a loan and will be replaced when the project starts and is debentured.

Using the Parry Sound Power funds to front money for a large infrastructure project makes sense. I probably makes more sense than taking a loan to fund the project. It’s a bit like taking a loan from your RSP to pay for the downpayment on a new house. As long as you pay it back in a reasonable timeframe there is no foul.

My bigger concern is the Town’s reliance on selling assets the past five years to meet annual expenditures. It has probably shaved about 3% or 4% off our tax rates which is a good thing. But is it a bit like selling the family silver to cover the mortgage payment. Yes, you don’t regularly use Grandma’s silver, but once it’s gone, it’s gone. And it will be much, much more expensive to try and get it back. It’s like pawning a ring or a guitar, you can never buy something similar for anything close to what you can sell it for. So what are we going to sell next to make ends meet? The North Shore Road allowance?

Overall I’m okay with the budget. The 5% increase in taxes I’ll see in 2017 is something I can afford. I’m not so sure that everyone is in a similarly comfortable position. Don’t bitch about taxes unless you actually invest some time and effort understanding the choices facing Staff and Council, and then share your thoughts. Your opinion may not make a difference, but put together a dozen opinions and I suspect Council will start paying attention. The Citizen’s Finance Committee went nowhere, because the members didn’t bother to show up for the budget meetings. You don’t get the budget you deserve or want, you get the budget other’s think you need.

Addendum:

Once the final draft of the budget is made available I’ll provide a summary of the key points, most notably where the money is going. I am planning to comment on the updated capital projects list presented at last Tuesday’s budget once the document is made available. I had hoped it would be online by Friday. I will follow up with Staff on Monday to get a copy that can be shared with the public. It’s interesting, and so very expensive. One item was a $4 million property purchase. Another related to an Innovation Centre. Big plans and presumably big budgets. Does that translate into big taxes?

Budget 2017 – Agreement in Principle

12 Thursday Jan 2017

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The Special Meeting of Parry Sound Council on Tuesday night saw tentative agreement on a budget for 2017. You had to be there to understand what was decided. I’ll provide the highlights, but I don’t claim to be a reporter. The official media were conspicuously absent. You have to wonder how council meetings would proceed in the absence of an audience. I am pleased to note that the 2017 Budget does include funding for the recording and online posting of all council meetings, regular and special meetings. I wonder how much ‘editing’ there will be. It would be best if there were none and the viewer could choose to skip over section that are not of interest.

The net/net of the budget discussion is that Council has made sufficient cuts to the draft budget to hit the lower end of the target 2017 Budget range. Final figures will only be presented at the February 7th meeting, but it’s possible to infer some estimates based on earlier budget documents. My estimate of the total 2017 levy increase is about 3.5%. This implies that the average tax increases by property class will be:

Residential +5.5%
Commercial +1.5%
Condo +12%
Multi-residential +15%

Note that these are average figures for a class of properties. Individual taxes will vary from these averages based on individual assessment changes. If you have a home and your assessment went down in the 2016 assessment it’s likely you will be receiving the average Residential tax increase noted above. If your assessment went up you will likely see a slightly higher increase. Please recognize that these are my best estimates of the tax increases. I don’t have access to the Excel spreadsheets that tote up the figures. If you have concerns or questions I suggest you contact Trevor Pinn, the Director of Finance and POA Courts. He probably won’t have final figures but he will be able to provide more informed estimates.

The cuts made to the draft budget to get to the tentative 2017 Budget will be the subject of a separate post. There are always surprises aren’t there? Why watch a canned and scripted drama show on television when you can see things evolve in real time at council meetings? And like a good television series the story of Parry Sound municipal politics unfolds from one season to the next. And it’s all unscripted – reality TV at its best. But like British entertainment it’s a bit subtle and doesn’t come with a laugh track.

Here are the property assessments underlying the increases as found in the Town of Parry Sound budget presentation of December 13, 2016. You will note that the total Parry Sound assessment is a little above $800 million. The total assessment for our neighbour Seguin is well above $3 billion.

2017-budget-assessments

Up, Up and Away…..

31 Saturday Dec 2016

Posted by in Budget/Financial, Parry Sound, Town Council

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taxes that is, especially for those of you who owns a condo.

For condo owners it’s a case of good news and bad news. The good news is that the value of your property as assessed by MPAC (Municipal Property Assessment Corporation) has increased substantially over the past four years. The bad news is that almost all other properties in Parry Sound have decreased in their assessed values, meaning more of the tax burden is being shifted to condos.

For residential property owners the news is not so good, and not so bad. Property values on average have dropped, and taxes are going up, but not as much as for condo owners.

For business property owners (Commercial) the news is not so good, and good. The not so good is that the assessed values for business properties have in general dropped significantly, translating into a lower average tax increase. The big box stores who appealed their assessments at the provincial level have seen their local property values drop significantly. For businesses the drop in property assessment values really is good news in that it stabilizes property taxes in a tax increasing environment. Since business sale prices are based on revenue and profit, not property assessment values, the reduction in commercial assessments actually improves the bottom line, and eventual sale prices.

For the Town of Parry Sound the news is not so good; overall assessments are down and unless expenses can be trimmed the burden of taxes needs to be shifted.

For condo owners there is a bit more news, good and bad. Increases in assessed value on properties are phased in over four years, not in the first year. That means if your property was previously assessed at $100,000 and the reassessed value was $200,000 (you wish, but it makes for simpler numbers), your assessed property value for tax purposes would rise to $125,000 in the first year, $150,000 in the second, $175,000 in the third and $200,000 in the fourth. Because of this provision it means your property values, and taxes don’t go up by the full reassessed value of $200,000 in the first year. The bad news is that your property taxes will increase in each of the next four years because of the increased assessed value of your condo, in addition to the Town’s annual spending increase.

How does this all translate in terms of tax increases for 2017 in Parry Sound? The table below if taken from the Staff presentation to Parry Sound Council December 13, 2016. The figures are based on the current budget as proposed by Staff. It’s possible that these figures could go up, or down, by 1% depending on decisions still to be made by Council.

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I have been laisez faire with respect to Parry Sound budgets for the past few years, figuring the new expenses were related to necessary items and services. I feel that if you need new snow tires for your car you probably want to buy them before you have an accident that will cost even more, even it requires a loan. But, do you need to take out a loan for that week in Cuba or Costa Rica, or a new snow machine, or ATV? There is need to spend, and nice to spend. Based on budget meetings to date I’m not sure that Council is paying attention to the difference. At the last meeting of Council a new ’music garden’ park was approved, and I really don’t get it. Yes, it is a nice to have, and yes, much of it was in the reserves, but what about next year if/when one of the existing parks needs some significant repair or it needs an upgrade? As a municipality have we sufficiently satisfied our needs that we can afford to be looking at 2%, 7% and 13% tax increases to support nice to have budget items?

Parry Sound is figuratively taking a pay cut in 2017 because of the MPAC reassessment. Actually it really isn’t a pay cut, it’s a redistribution of who is carrying a larger or lesser portion of the overall tax burden. Condo owners are taking on more, and business owner’s are taking on less. It’s likely that condo owners who are facing an average 13% tax increase in 2017 could be facing 50% higher taxes in four years than they were in 2016 by the time all four years of the reassessed condo value has hit their taxes. Ouch!

I don’t own a condo, and I don’t necessarily think they should be given a ‘break’. Their properties have increased in value and that means they should pay more. I pay more in taxes than some of my neighbours because I have a higher assessed property, and that seems fair. I do think that Council needs to pay attention to what is necessary and what is nice in the budget. Over the past few years they have been remarkably ‘generous’ in their approval of expenses that are more nice to have than need to have. I labeled the 2016 Parry Sound Budget the ‘pickle ball budget’ because budget was allocated to organize pickle ball play, among other recreational activities. I’m not sure that we saw any pickle balling, but it was one of the many reasons for last year’s tax increase. Is pickle ball, or any number of other items in the 2017 Budget, something we need, or are they things we want? Do we even want these nice to have items?

Is anybody else paying attention to the Parry Sound budget? Council is made up of good people who want to do the right thing, and not feel as though they are a Grinch stealing joy from the residents by cutting services or rejecting new initiatives. They need your input to understand what you feel is need to have and what is nice to have. Here are links to the various budget documents. At least look at the Capital Budget Overview and Tax Impact Presentation (December 13th) to get a short overview of where the 2017 Budget stands at this point and how it impacts your property taxes.

2017 Budget Schedule

Proposed 2017 Budget

Budget Overview Presentation

Capital Budget Overview and Tax Impact Presentation (December 13th)

Note: not all condo owners will see the full 12.98% increase in 2017 because their condo assessment might not have risen as high as the average. Others may see an even higher increase if their property assessment increase was above the average. That will be the case for all property owners, you are seeing the average impact, not necessarily how the 2017 increase will impact you.

The Path Less Chosen. A bit more demanding but more rewarding.

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North Shore Rugged Trail

2016-12-13 Parry Sound Budget Meeting Reflections

14 Wednesday Dec 2016

Posted by in Budget/Financial, Parry Sound, Reflections, Town Council

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Covering the Parry Sound budget meeting notes is challenging. As I invest time and effort into the budget process I begin to feel as though I have some ownership, and don’t want to be too critical of the process, or the product. That’s typically not an issue for media who merely report the news, and impart any opinion by means of selective quotes. So, I’ll offer my take from the perspective of someone who cares about the budget, but hopefully doesn’t care too much.

There Will Be Substantial Tax Hikes

By substantial I am referring to increases that will raise taxes in the range of about 4% to 13%. The cause of the increases is two-fold. The first relates to a decision by Staff and Council to add a 1.8% infrastructure levy to taxes starting in 2017. In theory that increase will not ‘increase’ again the following year. While the 1.8% will impact all tax years going forward, once the increase is in the tax rate, it will not be increased beyond the normal annual increase going forward, let’s say 2% of 1.8%, for a net 0.036% increase annually. That’s small comfort, but the biggest shock will be in 2017. Overall I understand the need for the 1.8% increase. Some municipalities who have failed to invest in their infrastructure over the years will likely see as much as an 8% increase in taxes just to support infrastructure investment (that includes you Toronto). I support the 1.8% infrastructure increase. It’s so easy to push expenses forward for future generations to cover. We need to be take responsibility for our share, now.

The second reason for the rather variable increase in taxes has to do with the recent MPAC reassessment of properties. The 2016 MPAC reassessment resulted in the assessments for residential properties dropping by about 3%, commercial properties dropping by about 6%, and condominiums going up by 6%. (Note: the exact figures were presented last night but I wasn’t quick enough to write them down. I was told the figures will be available later in the week and I’ll put up a post after I’ve had a chance to look at them.) This means people in condos will be seeing the largest increase, close to 13%, while businesses may see no increase or perhaps even a slight decrease in taxes. The rest of us will probably be looking at a 4-5% overall increase in our tax bills.

Council Has Not Yet Come to Terms with the Budget

The meeting last night saw further discussion and explanation of the budget. There was not much ‘meaty’ discussion of the overall costs and some of the particulars proposed for 2017. It seemed that Council had come to accept that increased costs were inevitable and necessary. I support, and at the same time fault, this approach. My thoughts:

  1. Infrastructure: I have commented on this already, but as a Town we really can’t operate without good services, be it roads, water services, or other. We have been pretty responsible investing in infrastructure, but there is a need for more. That’s what the 1.8% is for. It too often costs more to repair repeatedly, and then eventually replace, rather than replace as part of an asset management plan.
  2. Jobs: The budget includes the addition of two new full-time positions. These positions are not part of the critical operations of Parry Sound but they will make a difference. There is also a plan for a 3-year contract position (Economic Development), which for at least three years is effectively a new full-time position. The question I have is: do we want, or need, the services that these positions will provide? I see the value in the positions, but do we want them? That’s an issue Council, with input from residents and businesses, needs to address. It’s like adding a built-in GPS to your new car for an additional $1,000. It sure would be nice, but do I need it? Can I afford it? What won’t I be able to afford if I add in the GPS? Do I just take a bigger car loan? We need to decide if we want to upgrade town provided services. My sense is that staffing increases should be tied to changes in total municipal assessments above the cost of living index. If overall assessment goes up it suggests that more services are required. In the absence of assessment increases then the addition of staff seems to be a means to improve the quality of service, not the quantity of service. Council needs to wrap their heads around this issue. The proposed additions, like a built-in GPS, can make sense. But do we really need it? I’m neutral on this.
  3. Debenture: The Town is considering a large number of capital improvement projects starting in 2017. Please refer to the budget documents to see what they are. The total figure for new 2017 debentures is $10.7 million. Most of the planned investments are necessary and reasonable so perhaps they need to get debentured in 2017. Sooner would seem to be better with the prospect of higher interest rates looming. Note: the debenture expense will add 3.5% to your tax bill starting in 2018. So while the 1.8% infrastructure increase will be ‘part of the tax base’ in 2018 and not represent an ‘increase’, it will be replaced by a 3.5% increase related to the 2017 debenture. If we want the benefits the debentures will support in the next two or three years, then I feel doing it now is the right thing.
  4. What Don’t We Need: The budget process largely revolves around new capital and service investments for the upcoming year. Do we add or improve this service? Do we build, or repair, this piece of infrastructure? At no point is there a discussion of whether some of the services we currently provide need to be scaled back or cancelled. It’s a bit like having a $120 TV and Cable bill. It’s basic service and a few premiums. When someone in the family makes a suggestion to subscribe to Netflix because they have unique content, do you just consider the $11 an additional monthly expense? Do you cut some of the premium offerings on your TV bill to cover the cost? Or do you figure that if you have Netflix you won’t need to go to the theatre and you’ll save even more? It’s so easy to add on new stuff. I know all about it. There is a philosophy of belongings that says for every item you buy, for example clothing, you need to get rid of something. An interesting approach if you have reached my stage of life where the necessities of life have been met. As a town, where are we? Are we adding or replacing?
  5. Rotary Algonquin Regiment Fitness Trail: This is an issue that perhaps encapsulates many of the issues facing Council, Staff and the budget process. As was mentioned last night the Rotary Algonquin Regiment Fitness Trail won’t be groomed by the snowmobile clubs this winter. The problem is that access over private property from McDougall has been denied so there is no way for the groomers to get to, and through, Parry Sound. I don’t know if that means the Town will prohibit machines on the trail. Even if the sleds don’t use the trail, it will not be groomed. This then led to the concern of some on Council about the stretch of town trail up towards the YMCA. Apparently people use that part of the trail to get back and forth to the Y. Without grooming by the snowmobile club, people will be forced to walk along Parry Sound Drive, a potential safety issue. The question was asked as to what could Staff do to keep the trail open. There is no obvious solution. The Town is not staffed to handle this new responsibility, nor do they have the appropriate equipment. So, is this something that gets added on? Should the Town shift resources from some other service the Town provides, perhaps less frequent sidewalk cleaning, to keep the trail open? It was casually suggested that to provide this service would require another full-time position, plus new capital expenses for equipment. In the end, it was left as something to be followed up. It highlights the challenges facing Council.
  6. The Downtown: There is a line item in the budget for Façade Improvement, that was chipped down to $50,000 from $60,000. Is this a nice to have or a need to have? Earlier this year the Town made parking free to aid the Downtown. That cost us, the taxpayers, about $100,000 a year in increased taxes and has led to some service cuts. The Town is also considering a $60,000 vacuum vehicle, a vacuum on a golf cart sized machine, that I expect is largely intended to service the Downtown. Nice to have or need to have? Do we really need to support façade improvement and a vacuum machine in addition to free parking? The tax bill for businesses mostly went down with the MPAC reassessment. Won’t the free parking increase business enough to allow them to invest in their own signs? Or was the whole premise of free parking a boondoggle?

Death by a thousand cuts. That’s perhaps the best way to convey my sense of the 2017 Budget. There is no obvious ‘lethal’ expense in the budget. Will the 2017 Budget build, or bleed, the Town?

Okay folks, it’s time for all of you to invest a little bit of time in the 2017 Budget. Look it over, it’s not that hard to understand, then put together your thoughts and share them with Town Council and Staff. What may seem obvious on first glance is often not so simple once you dig into the details. It’s also important to remember that the budget is intended to serve all of the Town’s residents and businesses, not your or my particular needs and interests.

I’ll post up a link to last night’s presentation when it is made available. Here’s a link to the last draft of the budget.

 

 

2017-11-29 Parry Sound Budget Meeting Notes

30 Wednesday Nov 2016

Posted by in Budget/Financial, Parry Sound, Reflections, Town Council

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I noticed that none of you were in attendance yesterday evening at the Town of Parry Sound’s first open budget meeting. If you don’t like the menu perhaps you should  spend some time in the kitchen talking to the cook.

The 2017 budget is likely to lead to a 4.5% or so increase in taxes. There are a couple of reasons for this. The first is a normal increase in the cost of existing services, as well as some service enhancements. This accounts for about a 2.5% increase. The second reason is the recommendation of Town Staff to establish a reserve fund for major infrastructure projects. This amounts to a recommended 1.8% increase. A 3.6% figure would be better but seems a bit too steep. The whole issue of infrastructure investment is a major issue in Canada and the USA. You may have heard about President-Elect Trump’s promise to invest $1 Trillion in US infrastructure. The question is where he hopes to find the money. The same infrastructure challenge faces Canada, Ontario and Parry Sound. We are better off than most communities who are facing a 5-8% annual increase in tax rates to make up for their past decisions to forego infrastructure investments in exchange for lower taxes.

It also doesn’t help that the overall assessment of properties has dropped by 3%. This has implications for the tax rate, but not the total levy. It shouldn’t directly ding people in terms of their overall tax bill, except those of you condo dwellers who saw a slight assessment increase. But, that increase in taxes will be phased in over the next four years, so it may not even be noticeable in 2017.

Yes, the general provincial and federal grants have dropped over the years, but that’s not a significant overall budget issue as we have done well in securing infrastructure funding support. They take with one hand but give with the other. Ultimately the higher level governments feel we should be truly self-funded, just as you hope with your kids (eventually), which is why we need to look closely at what facilities and services we are able and willing to pay for, without government handouts. I see that our neighbors want $25 million or so from the province and the feds for an internet infrastructure. They may get it, but if it’s that important why aren’t they funding it themselves? Perhaps they feel it’s critical infrastructure that should be ‘given’ to them. Well I feel the same way about the proposed Waubeek Road reconstruction, and the extension of Great North Road. We need to be prepared to carry the costs of those infrastructure projects we judge as critical and hope that the province agrees and kicks in a portion of the funds, not hope they pay for it all.

There is a clear choice for those of you who feel that taxes are too high in Parry Sound, move to the neighboring communities where property taxes are 25% to 60% lower on assessed value. There are fewer local services and much less infrastructure, but the taxes are lower and you can always drive to Parry Sound for your shopping and services. Don’t worry about the bears, we have them here already. After spending time going over the budget and listening to the presentation and discussion last night I am happy to defend the implications of the draft budget. Sometimes you have to spend more to just stay in the same place.

You may see me get a bit more animated if there is any serious discussion of an aquatic centre in Parry Sound lacking a clear plan of how that expense will not end up on my tax bill. Without considerable regional participation it would add another 5-8% to our tax bills for just operating expenses, plus another 5% for the debenture to cover the cost of construction assuming a reasonable time of facility life term for the debenture, not a thirty year daydream. Town Staff did decide to defer investment in a ‘splash pad’ beyond 2017. Splash pad? This was the suggestion of a councillor no longer on Council, and to date I have never seen a plan for where it might be installed, a firm budget for construction and maintenance, and a plan for how it would be operated (season, time, …). We have enough trouble maintaining a couple of small fountains and we want to operate a splash pad?

Back to the budget, you need to go over it to understand the implications. There are four areas of new discretionary spending that Council has been asked to decide on:

  1. Recreation programmer.
  2. Economic development officer.
  3. Tourism intern.
  4. Enhanced transfer station service (mostly increased hazardous waste service).

All four have merit. If you have a question or comment about the budget be sure to pass it on to Council. The next meeting, when I expect many of the decisions will be made, is scheduled for December 13th, 6:00 PM in the council chambers. Let Council know what you are thinking and come on down on the 13th to see how budgets are discussed and agreed.

Note: The North Star attended the budget session so I expect they will share some of their observations and thoughts in Friday’s Beacon Star and next week’s North Star. With James King having left Moose-FM is seems they are no longer covering Parry Sound Council events. On the upside there is a proposal before Council to budget $2,500 for audio visual equipment to permit council meetings to be made available over YouTube, including these smaller budget type meetings. That would be an important step forward in ensuring transparency in local government.

Yes, there was much more, but nothing too critical in my opinion. If you want to know what goes on you should attend; admission is free.

And no, there was no mention of the casino project. Better perhaps that werestrict our ‘pipe dreams’ to water services for the near future at least.

Budgets are All About Getting Things to Line Up

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Parry Sound 2017 Budget – First Look

26 Saturday Nov 2016

Posted by in Budget/Financial, Parry Sound, Town Council

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The draft Parry Sound 2017 budget is available for public viewing. It is a longer document, 144 pages, presented in a reasonably easy to digest format. I have gone through the budget document and made some markups on points that caught my attention. I will return to the document for a more detailed review. At this point I intend to forgo any type of review and analysis of the budget pending attendance at the budget meeting on the 29th. (Note: it starts at 6:00 in the council chambers.) I want to see if more detail comes out of the presentation and discussion. There are  plans to include a session open to the public at the conclusion of the meeting to address questions and receive comments.

Here is a link to the Town of Parry Sound 2017 budget at the Town’s website:

Here is a link to my markup of the budget. This includes some notes and highlights of points I found interesting. Feel free to ignore my scratches and just review the Town’s original draft version above. (Note: the green highlights are mine as well as the hen scratches. As I discovered towards the end of the document HHW refers to household hazardous waste.)

Hmmm. Something’s Going On! (Click to Enlarge)

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