Wet Dreams? Part 4

05 Monday Feb 2018

Posted by Jo Bossart/ParrySounds.com in Budget/Financial, Parry Sound, Reflections

Tags

Capital Investment, Infrastructure, Opinion, parry sound, Pool, Taxes

It was about a month ago that a CBC article arrived in my news feed. It said that one third of Canadians live paycheck to paycheck. It stunned me, although I wasn’t surprised. I don’t think that Parry Sound has any reason to believe that its residents are any better off.

A Thought Experiment

Let’s take a family in Parry Sound with two children. Let’s assume that they rent and pay $1,000 per month not including utilities. That’s not an unreasonable estimate for an apartment big enough for two or three children. Rent represents a large portion of their disposable income. Let’s also assume that a pool is built in a multi-municipal partnership and as a result Parry Sound taxes go up by 2%, a best-case scenario. That means the landlord’s taxes will go up and be passed on to tenants. Let’s assume it’s a simple 1% rent increase to cover the cost of the tax increase. A landlord has more than taxes as part of expenses. This family now is paying another $10 per month or $120 per year to support a municipal pool. If they want to use the pool they need to find another $1,000, or a month’s rent, to pay for a family membership at the pool. Can they swing this? Not if they are living paycheck to paycheck.

A Pool for Exactly Who?

Exactly who is a municipal pool intended to serve? Well, it will obviously only serve those who want to swim and have the resources to get to the pool. That’s not everyone and it may not even be a majority of residents. A pool will also serve only those who can afford a pool membership. That further shrinks the ‘pool’ of users. Everyone else will be helping to subsidize the pool for those who want to swim recreationally or competitively, are able to access it, and can afford it.

Actually, it will be only a tiny minority of people who use the pool. Any pool will operate much like a commercial gym. Gyms price their memberships to entice people to buy in, realizing that it will only be a small percentage who actually use it regularly. Most gyms are unable to properly serve all of the people who have paid for a membership if they were to show up regularly. The net/net is that the gym owner makes a profit and the people who actually use the facility are paying less than they really should because of the effective subsidy of others. In this case of a pool all taxpayers are being asked to cover the cost for what will be used by only a few. According to StatCan there are 16,000 people living in the municipalities considering participating in a pool. How many of these can you fit into a pool at one time? Or in one week?

Don’t believe or like this line of thinking? Here is a link to an article in the Washington Post that discusses the business of gym memberships. They note that one gym has 6,000 total members but only capacity for 300. That sounds about right for a pool, but with a 16,000 to 300 ratio.

All-Star Game – Magic Johnson to Darryl Dawkins for a Dunk

There is the point being made that a pool would help with the recruitment of medical professionals to the West Parry Sound Health Centre (WPSHC). That opinion was made clear a couple of years ago when the CEO of the WPSHC made a presentation of Parry Sound Town Council. After the presentation the Parry Sound CAO soft lobbed a question to the CEO asking if a pool would assist with recruitment. Like a Magic Johnson pass to Darryl Dawkins at an All-Star game, the CEO grabbed the alley oop and not only slammed it home, he broke the backboard. Beautiful. And like any All-Star Game it really didn’t make any difference. A pool can make a difference in recruitment, but ….

Is it enough? Can a pool really make a difference? It’s an 11-million, or even 20-million-dollar bet.

Talking to others I have come to understand that perhaps the biggest reason recruitment is an issue may not be the lack of the pool, but the lack of good opportunity for two career families. Heck, it’s a problem for all families thinking of moving to the Parry Sound area, not just physicians. A physician may be married to a lawyer, or a chartered accountant, or an engineer, or a biologist, or a management consultant, or …. How easy is it for both adults to find good career advancing jobs in the Greater Parry Sound Area?

There is also the issue of educational resources. You have seen the local academic scores. Health professionals are presumably competitive academically, and probably want the best learning environment for their children. That means children learning in an environment where it is not only the teachers that challenge them, but also other students with similar goals and advantages. Do we have magnet schools for the musically or scientifically gifted? Rosseau Lake College is excellent, but as a private school has its own set of pros and cons for a parent to consider.

It’s perhaps better for physicians or top medical professionals to work in an urban centre and provide their families with all of the available benefits and cottage in the Greater Parry Sound Area. Win-win. Weekdays, a vibrant multicultural urban centre, access to educational resources, a local church, synagogue or mosque, and of course a pool and much, much more. Weekends, the relaxation and connection to nature on a lake or river in the West Parry Sound area.

Perhaps that too negative. It’s possible that a pool can help with medical professional and executive recruitment, but it needs to be part of a larger recruitment plan. Let’s see the plan.

It All About Access

How do we make a case for a pool recognizing that at this point it is largely the pet project of a relatively limited number of folks wealthy enough to take advantage of it?

The answer in my opinion is to make it accessible to children, through a school program. That doesn’t necessarily mean attaching it to the new ‘super school’. I understand that there is no room, and more importantly no budget. That’s okay. If we want the pool to be part of the community, we need to introduce children to it. Even if they only get a dozen dips in a school year it is an important experience that might have lifelong implications, and one they would not have been able to enjoy otherwise. There may be a future Olympian waiting to have their potential revealed.

That family who saw their rent go up $120 per year because of a new pool might be okay with the increase if their children we able to use the pool without any additional charge.

Lessons of the Bobby Orr Community Centre

Let’s not use the Bobby Orr Community Centre model as a template for a municipal pool. At this point the taxpayers of Parry Sounds subsidize the BOCC to the tune of several hundred thousand dollars per year. Beyond its use for meetings as well as community and private events the BOCC is primarily used as an ice rink. But as an ice rink its use is pretty much limited to organizations who pay for ice time. The organizations who pay for ice time play an important role in subsidizing the BOCC expenses and are given top priority in terms of ice time assignment. This results in other taxpayers, casual skaters, having very limited use of the facility, sometimes depending on the Mayor or Tim Hortons to cover the cost of a free skating period. People do have access to free skating at the Kinsmen Park, but that depends on the weather and the contribution of volunteers. Let’s not hope that a municipal pool would, like the Bobby Orr Community Centre, be limited to those who pay a premium or participate in programmed content while all others are relegated to Waubuno Beach, and subject to season and weather.

If a pool is a municipal resource that is subsidized by the taxpayer, the taxpayer needs to have access. A pool cannot become a resource that is reserved for those who can afford to pay more or are willing to participate in structured programs. Structured programs, swimming lessons and swim club, will be necessary, but shouldn’t preclude regular casual public access.

Concluding Comments and Suggestion

Building a pool for the right reasons and with the financial involvement of the neighbouring municipalities can make sense if it is done for the right reasons with a plan that encourages use by all. Or at the very least doesn’t create any artificial barriers.

How about we forgo any basic user fees and make it free to all municipal residents? Add in another $300,000 to the annual expense line that might come from user fees and spread the cost among the communities. You pay just a very little bit more in your taxes but that’s all it costs to access the pool unless you use the programming. That family with two kids could then afford to go for a Saturday morning swim in the middle of January.

There is an election coming up, let’s put it to the voters to decide. Let’s not leave the decision up to a few dozen individuals who raise enough fuss that they get their way. That has worked too well in the past, perhaps not to the benefit of the larger community. In Parry Sound the squeaky wheels, as long as there are enough of them, get the budget. Let’s remember the many folks who live paycheck to paycheck when we look at how tax money should be spent.

That’s it for me on this topic. I may chip in with some comments at some future point. I will be interested in watching how this initiative progresses. Nothing ventured, nothing gained.

(Disclosure: I can afford my portion of any tax increase that is part of a joint municipal pool initiative. I can also afford a $1,000 per year pool membership.)

wet Dreams? Part 3

04 Sunday Feb 2018

Posted by Jo Bossart/ParrySounds.com in Budget/Financial, Parry Sound, Reflections

≈ 1 Comment

Tags

Archipelago, Capital Investment, Carling, Infrastructure, McDougall, McKellar, Opinion, parry sound, Pool, Seguin, Taxes

Swimming in Numbers.

In the end it’s about the numbers. There is no question in my mind that there is no one against a pool, aquatic centre or athletic complex on the basis of its contribution to the community. There may have been people for and against the Walmart on principle and not numbers. And there were people for and against fluoridation, and the numbers didn’t really matter. In the case of a pool it’s all about the numbers at the council level.

Let’s start with some numbers. These numbers can be used to tell any number of stories, but we will focus on only a couple that are relevant to a municipal pool.

The numbers in the table above are derived from a few sources, notably StatCan, MPAC, and individual municipal budgets and tax rate bylaws. The Occupied Home figures from StatCan, basically tells you how many of the properties are not used seasonally, that is they are residents and not cottagers. The MPAC Values represent the property values in the various municipalities. To make things a little easier to digest I have normalized the figures with the Town of Parry Sound being set at 1. That means all of the properties in Seguin have about four times the values of those in Parry Sound. McKellar property values total about four fifths that of Parry Sound. Some of these numbers may be surprising. Tax rates are similarly expressed relative to those of Parry Sound. For example, a person in Parry Sound paying $2,000 of municipal tax on their property would pay $540 in Seguin for a property with a similar MPAC assessed property value, $740 in McKellar and $880 in McDougall. This does not include the education tax levy which is the same in each municipality. The education portion represents about 10% of my total tax bill in Parry Sound but would represent about 35% of the tax bill of someone in Seguin or the Archipelago. We pay exactly the same rate for education taxes, but it ‘hurts’ more in a relative sense in the other municipalities.

If this is the financial backdrop for a pool project, it’s important to understand the implications for each of the municipalities. I have a pretty good idea of the more important considerations in Parry Sound and will imagine some of the dynamics and concerns in the other municipalities. At this point Carling, McDougall and the Archipelago have expressed initial interest in a municipal pool project. McKellar has declined to participate. Seguin has not yet responded as far as a I know, and I believe Parry Sound has not committed but is likely to agree to participate in looking at the options.

Town of Parry Sound

Parry Sound Town Council is generally in favour of a pool if it can be done as part of an equitable long-term sharing agreement with the other municipalities. Going alone would increase the Town levied taxes by about 12% as mentioned in an earlier post, and these taxes are already four-times that of Seguin and the Archipelago.

The Town is likely to have other concerns that would need to be addressed in any agreement. It’s obvious the pool would need to be in Parry Sound, if only for access to a secure supply of treated water. None of the other communities would be able to provide this service and the cost of building and operating a treatment facility would make the pool project too expensive. But, the Town has concerns about losing a portion of its water treatment capacity to a project that will not generate revenue. Who pays for additional capacity if at a later date capacity equivalent to that used by the pool is required for development?

There is also the prospect of losing prime real estate to another project that will not generate property taxes. The Town now has more than two dozen facilities occupying prime real estate that don’t pay taxes. This includes churches as well as social service and medical service providers. These groups enhance the quality of life for Parry Sounders, but they also enhance the quality of life of those in the surrounding communities. These facilities make use of, and raise the cost of, tax subsidized services, increasing the load on tax payers of Parry Sound.

Would a consortium of municipalities be willing to give Parry Sound a credit on the tax assessed value of a municipal pool? Assuming an ‘assessed’ value of $11+ million for a pool would suggest that if it were a business or residential property it would pay about $150,000 in annual municipal taxes. Would the consortium be willing to credit the Town that amount against their contribution? Oh, oh, I hear the howls already!

For Parry Sound a pool is not that interesting unless acceptable terms were negotiated. What might be acceptable to Parry Sound might not be acceptable to its neighbours.

The Archipelago and Seguin

I am lumping these two together because they largely share the same interests, although they might not share the same ways of thinking.

Issue one is the tax payer. The majority of Seguin and Archipelago taxes are paid for by seasonal property owners. What they want is limited services and low taxes. They are paying two sets of taxes, one for their home in ‘Hogtown’, and another for their cottage in ‘God’s Country’. They don’t need a pool, they have one they are already paying for back home. These are informed folks who do not want to pay for anything more than is absolutely necessary to ensure a road to their cottage, and rules to prevent their neighbour from building a bigger dock or ‘bunkie’ than they have. And when it comes to roads they are already paying for that last ‘mile’ of driveway to access their ‘cottage’.

There are still folks in both municipalities who live, work, and contribute to the larger West Parry Sound community. In principle, they probably would like a pool, but not if it costs that much. It’s a bit different depending on whether you live in The Archipelago or Seguin. Archipelago residents really have only one choice where to go for shopping and services – Parry Sound. Sudbury, Huntsville and Bracebridge are a bit too far. For Seguinites it’s a bit more nuanced. Given the proximity of Huntsville and especially Bracebridge, it becomes a toss-up as to whether you drive to either one of those towns or Parry Sound. It may not even be a toss-up for those in Rosseau. Once you’re in Bracebridge for a pool you have more options in terms of their recreation centre and shopping. Pay more taxes for a pool in Parry Sound that you won’t use? The eastern Seguinites will probably say no. For those in Orrville a Parry Sound pool might be desirable, if they think they will use a pool. Not all will. The situation for Archipelagians is more obvious if they want a pool. That may be why they have expressed initial interest in a community pool discussion.

Both communities offer their seasonal residents the lowest taxes possible. These are the municipalities that boast multiple multimillion dollar properties. A quick look online revealed numerous, and I mean numerous, properties with valuations in excess of $5 million each in Seguin. That $5 million dollar ‘cottage’ would pay about $18,000 in Seguin taxes (not including education taxes). Raising their taxes 2% would mean an additional $360 in taxes. That might mean foregoing a couple less bottles of fine wine, probably very fine wine. When you make this type of money though, a dollar spent on something you really don’t want hurts more than you might imagine. And if it hurts they squeal. With a ward system they have ears to squeal into.

Carling and McKellar

I’m lumping these together to save words even though McKellar has declined participation. The situation these municipalities share is similar. Heading off to Sudbury or Muskoka for a pool is not really practical. At the same time, they both have more than two-thirds of their property value owned by seasonal residents and face the same issues discussed with regard to Seguin and the Archipelago.

The property values in both of these municipalities approach but don’t come consistently close to the stratified values of the Seguin and Archipelago properties. Seasonal residents of both municipalities are likely to pushback against any increase. Perhaps in anticipation of this McKellar’s council has already declared their lack of interest and retreated to their bunker.

McDougall

McDougall is much like Parry Sound in many ways, but not all. If you have driven along Big Sound Road you realize that there are a number of million dollar plus properties, just not the multimillion properties of Seguin and the Archipelago. Parry Sound does not have these types of properties, which may explain why the ‘rich folk’ who work in Parry Sound don’t live in Parry Sound. Taxes in McDougall are also the highest in the area, but still less than half of Parry Sound’s. It’s an easy ride from McDougall, at least the major population centre of Nobel, to Parry Sound for shopping and making use of a municipal pool.

Who Pays What?

This will certainly be a point of discussion and probably disagreement. Do you share expenses on the basis of permanent population, seasonal plus permanent population, private dwelling numbers, or MPAC assessment? I’m sure the lower tax municipalities, with higher assessment values and lower populations, would prefer a population-based sharing. Parry Sound would prefer an assessment-based allocation.

Both methods of allocation are currently being used. Belvedere Heights allocates municipal contributions on the basis of MPAC assessed property values. By this measure Parry Sound, The Archipelago, McDougall and McKellar all pay about the same, plus/minus $15,000. Carling pays about $40,000 more and Seguin pays about four-times as much. This is because Seguin in particular has a massive assessment base with all of those multimillion dollar ‘cottages’.

The Reginal Health Unit on the other hand allocates municipal contributions on the basis of the MPAC 2014 population count. This makes the Town of Parry Sound the largest contributor, while the Archipelago pays next to nothing. This makes sense as health services are delivered on a per person basis, although it is likely our ‘summer visitors’ and cottagers make considerable use of the hospital, albeit not so much the health unit services.

Playing Arbitrage

The situation with McKellar is interesting to think about. They have expressed no interest in a community pool, but could we deny McKellar residents the right to use the pool? Probably not. We would just need to charge a premium for those who want to use the pool but whose municipality doesn’t provide support. It’s a tricky situation. We are likely to have visitors interested in using a pool. Some will be tourists with no relation to the community and there will be others who are friends or family of area residents whose municipalities contribute to the pool. Charge too much and the Town looks like a money grabbing community, charge too little and it will make it cheaper for other municipalities and their residents to not participate in supporting the community pool. But then again, any additional revenue is probably ‘profit’. What is the additional cost of ten visitors compared to the corresponding dollars of non-resident income?

Let’s look at the McKellar situation as an example of what communities might want to think about. If McKellar were to participate in the pool they would probably be on the hook for about $85,000 per year (permanent population basis). That would raise their taxes by a bit less than 1.5%. On a property value basis, let’ assume that for a $250,000 property, not a high-end cottage, this would amount to an increase of about $18 per year. In exchange for this the resident could purchase an annual pool pass for let’s say $1,000. Also assume the non-resident rate is $1,400, a 40% premium. For that person having McKellar in the consortium is a big savings. It’s likely that it would be a break-even event for residents if they were only to use the pool twice a year and pay a resident as opposed to non-resident single visit rate.

What about McKellar as a whole. I would be surprised that if more than 30 pool memberships were sold to McKellar residents. That would bring in $30,000 of revenue as a ‘resident’. The non-resident rate would bring in $42,000, a difference of $12,000. That’s not close to the $85,000 it would cost McKellar to participate in the consortium. McKellar would be better off reimbursing pool users the $400 cost of a non-resident membership. It would raise taxes only a fraction of a percent if the amount couldn’t be found in petty cash.

That’s what arbitrage is all about, capturing profit by exploiting the difference between prices in different markets. In theory at least, it could work to the benefit of a community like McKellar to sit outside. It would be hard to refuse McKellar residents access to the pool because McKellar isn’t party to the pool partnership or charge them the appropriate premium to cover the real benefit they are receiving.

Final Thoughts

The numbers and the individual interests of municipalities are what will drive the decision. Understand the numbers and you can perhaps better anticipate and address concerns at your local municipal level.

There is also a social issue that needs to be addressed. A municipal pool is not like roads or health services that we all use in one way or another, even if we don’t have a car or never get sick. I’ll take a look at that in the next and final installment.

Wet Dreams? Part 2

02 Friday Feb 2018

Posted by Jo Bossart/ParrySounds.com in Budget/Financial, Parry Sound, Reflections

≈ 4 Comments

Tags

Archipelago, Capital Investment, Carling, Infrastructure, McDougall, Opinion, parry sound, Pool, Seguin, Taxes

In this post I examine the likely costs of a municipal ‘pool’ for the area. I don’t discuss the impact of any costs on individual municipalities in this post. the focus is on the likely costs to build and operate a pool.

I can assure you that any numbers I present will be wrong. I am not doing an in-depth cost analysis; that is best left to an experienced consultant. My estimates are based on figures I believe to be credible and reasonable. As appropriate, I provide links. That qualification of being wrong doesn’t mean you should dismiss the analysis if you disagree with it or embrace it unquestioningly if you agree. It’s an estimate and the basis for constructive discussion. Looking at the numbers also helps identify issues that are worth discussing and digging into. There will be two more posts on this topic so assume that the more obvious questions and implications of this analysis will be discussed in a later post.

Cost Estimates – Introduction

Building and operating a pool comes with four sets of expenses. The Build. Annual Operating Costs. Programming Costs. Reserve Fund.

There is also Revenue to consider, unrelated to property tax implications. That is discussed in this post as well.

The Build

I will toss out the number of $11 million to build a swimming pool. This is based on an article from 2013 concerning a pool being considered by the community of Exeter in Southwestern Ontario. The estimate for their pool was $9-13 million. I have taken the midpoint and ignored inflationary increases over the past 5 years. This is for an indoor pool, not an aquatic centre.

This seems to be a reasonable, albeit conservative estimate, in my opinion. I note that the Town of Parry Sound will be investing $1.2 million in the Stockey Centre just for new siding and a metal roof. A replacement of the ice surface at the Bobby Orr Community Centre also comes in at $1.2 million. The Stockey Centre cost $12 million to build in 2002, about $16.5 million in 2018 dollars. The retaining wall rebuild along Bowes Street cost about $200,000. This was the replacement of an existing wall that was less than 100 metres in total length and varied from ground level to no more than 2.5 metres in height. Things are remarkably expensive when you start moving earth.

It’s possible to lowball costs and take a cheaper path, but that always comes back to bite as we have learned in Parry Sound. That $1.2 million upgrade at the Stockey Centre is required because the current roof leaks and needs to be replaced. And the siding at the Stockey Centre hasn’t held up as well as promised. In the case of the Bobby Orr Community Centre, the town was required to spend tens of thousands to repair/replace/upgrade the heating in the stands. The BOCC roof will cost thousands more to repair/replace/upgrade. It’s possible to do things on the cheap, but it usually turns out to be a mistake.

So, let’s work with $11 million to build a municipal pool. This is for a 25 metre five lane pool, no high diving area, and no separate children’s pool. Certainly no separate fitness area.

None of the local communities, certainly not the Town of Parry Sound, can afford to pay $11 million upfront for a new pool so we need a debenture. There are many considerations in estimating the cost of a debenture, but what the heck, let’s go for it.

The first thing to be decided is the length of the debenture. I understand this generally is the expected lifetime of the facility. An indoor pool is different than most other buildings. The humidity and pool chemicals have a profoundly negative impact on longevity. A pool can last longer than 20 to 30 years, but the maintenance costs rise substantially as the pool ages. For the purpose of our discussion I will optimistically assume a 30-year bond.

An $11 million, 30-year, bond will cost about $700,000 per year at an interest rate of 3.5%. This 3.5% rate seems to be a reasonable, albeit optimistic, figure. Over the length of the loan the pool would have cost $21 million, or about twice the initial cost. That’s not too bad for the privilege of stretching it out over thirty years. It’s likely that inflation will average more than 3.5% over this period. People too easily forget the 1980s and the 10-15% interest rates people paid for mortgages.

If we drop the repayment period to 20 years, the annual cost rises to about $750,000. Keeping the period at 30 years and using a 5% interest rate raises the annual payments to $870,000.

Operating Costs

This is perhaps the weakest part of this analysis and most subject to correction. Nonetheless, the costs can be approached from a couple of different directions with results that hopefully come close.

There is some public information available regarding operating costs. The article mentioned earlier estimates operating costs at about $450,000 in 2013 dollars for a pool that should meet Parry Sound’s needs. Inflated to 2018 this number rises to about $480,000. These figures reflect post user revenue. So, the numbers need to be increased accordingly. Adding in $220,000 for user related offsetting revenue raises the annual operating costs rise to about $700,000. Looking more closely at the article the costs could be higher or lower by $100,000.

Another way to estimate the costs is to look at the cost to operate the Bobby Orr Community Centre, for which we have figures. There is a huge difference between the two in terms of costs. The BOCC only actively operates for a bit more than half the year with an ice pad. For the other months the building is maintained and available for public use, but with much lower expenses. A pool in contrast needs to be actively maintained 12 months a year. While an ice pad, once in place, mostly stays that way, a pool probably needs to be refreshed several times a year with a much higher use of water. Pools also require chemicals. But they don’t require a Zamboni type machine.

Reviewing the 2018 Town of Parry Sound budget documents I see that the BOCC has expenses in 2017 estimated at $700,000 and revenues of $180,000, for a net of $500,000 (don’t worry about the arithmetic, it only needs to be close because it certainly won’t be correct). The Stockey Centre had estimated operating costs of $1.5 million in 2017.

Okay, let’s go with $700,000 for the annual operating expenses for a municipal pool. This seems a bit low in comparison with the Bobby Orr Community Centre expenses, but it’s an estimate.

Some guidance is offered by looking at the Bracebridge 2017 Budget figures for their Sportsplex. This is a much larger operation and has annual expenses of $1.6 million, including the facility’s debenture principal and interest of about $640,000. This debenture figure is lower than I would have thought, but it may have been lowered by upper level government grants, which is also possible for a pool in the Parry Sound area. Operating expenses then were about $1 million. The two largest items were wages ($330,000) and hydro ($260,000).

Programming Costs

If you have a pool you need to offer programming. This ranges from management, to instructors, to life guards. I wanted to exclude a person to lead the programming activity as there is already such a person in Parry Sound, but if this is a joint municipality project we need to add in a programming head who also keeps an eye on the operations and makes sure things don’t screw up.

Let’s add in about $150,000 for programming costs. This would include 0.5 FTE to oversee the pool operation and programming as well as instructors and life guards. As a reference point the Town of Parry Sound spent a little more than $60,000 for their outdoor Swim Program in 2017 that stretches no more than three months.

Reserve Fund

It would only be prudent to add in another $100,000 per year to a Reserve Fund for the pool. This is what’s suggested in the 2013 Exeter article, and while a little low it’s close enough.

Total Expenses

Adding together all of the costs for a pool we end up with annual expenses of about $1.5 million. If you add together the expenses I’ve estimated in the earlier sections, you will see that I’ve rounded it down a bit. It only needs to be close and I’d rather not be seen as trying to stick a knife in the project.

But, that’s only part of the total package. There will be revenue and there are likely to be grants. We can depend on user fees, so let’s take a look at them. Upper level government grants are a different issue that are likely and not guaranteed. Local fund raising is possible, but it will represent a drop in the bucket. I have rounded down the expenses in part, so let’s forget about local fund raising being a meaningful dollar contributor. It’s more likely to be a symbolic statement of support than a financial pillar upon which to build the argument for a pool.

There is also the possibility of a partnership with the YMCA or the school board. One has expressed interest, and the other hasn’t. Neither would really change the costs, nor what we would pay in our taxes. The YMCA still needs to get money to pay their part, either grants or user fees, and the school board would probably just raise the education portion of our taxes to pay their part. I may be pessimistic, but beyond some operational efficiencies in a partnership, these groups won’t improve the bottom line in terms of tax impact. Expenses don’t just disappear, and revenues don’t just appear.

Revenues

This is a bit trickier, because it assumes a price structure for pool use. The only indirect experience I have is with the Sudbury Y. It offers a full family membership, including pool use, for $1,200 per year. The Bracebridge pool offers family pool use for a specified 45-minute period each Saturday for 3 months for about $60. That adds up to about $240 per year. And that is for one 45-minute period on one defined day per week. In Barrie it’s $17 per family per visit. Once a month would be $200 per year, once a week would be $900 per year.

Okay, let’s go with the annual use fee from that Exeter 2013 article of $1,000 per year per family. What that offers in terms of pool access is not clear. The article also mentions a total of 300 memberships, and $300,000 in revenue. All of those numbers carry much more baggage than I want to discuss in this post. I’ll get to that in the last of this four-post series. For now, we’ll assume $300,000 in revenue, the equivalent about 20,000 family days of use at $15/day.

The Net/Net

Add the numbers together and we end up with a net cost of $1.2 million per year for a municipal pool, not an aquatic centre or recreational complex. That is before any upper level government grants.

If the Town of Parry Sound was to shoulder the full expense Town taxes would increase by about 12%. It would be a one-time increase that would carry forward, but unlike the infrastructure reserve expense it would not be increased each year.

Next

In the next post I’ll take a look at the various municipalities, their assessments, their tax rates, their ‘demographics’ and the local political issues that might impact any decision or support for a municipal pool. The last post will be the most interesting in my opinion as I consider some of the human aspects of a municipal pool, particularly how it might impact different segments of the community.

Hang tight Ryan. The next post should be up by the middle of this coming week.

Wet Dreams? Part 1

01 Thursday Feb 2018

Posted by Jo Bossart/ParrySounds.com in Parry Sound, Reflections, Urban Development

≈ 3 Comments

Tags

Archipelago, Capital Investment, Carling, Infrastructure, McDougall, Opinion, parry sound, Pool, Seguin, Taxes

In a series of four articles I will try and lay out some of the more obvious issues concerning a municipal pool in the Greater Parry Sound area. I will alternatively refer to this as ‘pool’, ‘aquatic centre’ or ‘recreational complex’. There is a difference between the three terms that may come into play in the discussion. A pool is something we already have in Parry Sound and in the local area, by my count at least three in local hotels. These are rather modest facilities, in some regards not much more than ‘super-sized’ hot tubs that provide a valuable service to many in the community. The next step up in terms of size and facilities is an aquatic centre. I would imagine that this might include two pools, one for more exercise-oriented use that could host competitive meets, and the other targeted to recreational use, perhaps with an extended shallow area for children. It might also have a diving pool. I imagine that a recreational complex would combine an aquatic centre with a full gymnasium or exercise centre. Big – Bigger – Biggest.

At this point in the process I have shifted my position on the desirability of a pool to one of neutral. I have in the past suggested that a pool is not something the Town needs, even if it wants it. That position was based on my research into the costs and my observations on how the various communities were cooperating. Why bother to even consider a pool if the costs would be very high and there was little prospect for regional cooperation. It seems that in the past couple of years there has been a shift to more cooperation, in principle at least, when it comes to the issue of an aquatic centre that can be used and shared by the area municipalities.

The issue of cost remains the biggest issue and will be the topic of a separate post. If a pool was ‘free’, and let’s remember nothing is actually ‘free’, it seems to me that the plans for a pool would be underway, if the pool were not already built.

I will relate my thinking about the cost of a pool to my thinking about personally purchasing, servicing and enjoying a Porsche. I don’t own a Porsche for many of the same reasons we don’t have a municipal pool already. In both cases somebody needs to come up with the cash for the initial purchase/build. Since neither of us could afford a Porsche or a pool from our bank accounts we would need to take out a loan. The question would be whether we could afford the monthly payments. In the case of the Town they could. It might mean raising taxes or deferring other infrastructure projects. In the case of my new Porsche it would mean taking on a second job or cutting expenses. Perhaps I could sell my property and move to Carling or Seguin where I would save thousands annually on taxes but still have access to Parry Sound services. Though, perhaps not the high speed internet access I need for work. Dang, not an easy solution but perhaps the Province and the Feds will build the internet structure I would need. But that’s another issue that only confuses the discussion of a pool.

So, even if I could make the necessary sacrifices to buy a Porsche I would need to face the operating expenses. It’s a Porsche, so it wouldn’t be cheap. Expenses that would require more income or additional sacrifices. Annual operating expenses is probably the biggest issue for any aquatic centre, recreational complex or municipal pool. In the case of Parry Sound that would mean raising taxes or cutting back on other services. Perhaps we could get folks to agree to reduced snow removal services.

But, if three friends in the area were to go in on the purchase of Porsche Boxster I might be able to swing it. Cutting the upfront and ongoing costs by three quarters might make it manageable. I really wouldn’t need it full time. It’s not practical in winter, so I would still need my Honda Civic. Having access to the Boxster a couple days a week would be more than acceptable, especially if one of my neighbours would keep it in their garage. Hmmm! Seems like something I might be interested in. I would of course be much more interested if one of my neighbours were to buy the Porsche and let me use it for ‘gas money’.

I think that’s not an unreasonable analogy for the issues underlying a municipally owned and operated pool. I wonder if it would be easier to find three other people to chip in for a Porsche than get the local municipalities to chip for a pool. Each of the local municipalities has their own concerns that range from land use to infrastructure demands to cost. But I’m getting ahead of myself, more on this in future posts.

My bottom line is that I’m very much okay with the idea of a pool, aquatic centre or recreational complex if it doesn’t cost me anything in capital or operating costs. I’m probably still okay if the tax payer related costs were minimal and users would be responsible for the larger part of the expenses. I’m not that interested in using a pool. That’s just not what I’m interested in. If I want to get wet I can use one of the local beaches. If I want to exercise I can bike, walk, hike, ski or snowshoe depending on the season. I suspect that’s one of the reasons people have concerns about a municipally supported pool. They may feel they will be paying for a resource they don’t use. Not everyone who pays for the pool will use the pool.

That’s the case for me with the Stockey Centre and the Bobby Orr Community Centre. I don’t use them. At this point these two facilities cost the taxpayers of Parry Sound more than $500,000 per year and the Town is now preparing to put in another $2 to $3 million in necessary renovations and repairs. These costs will need to be paid for with a bond paid off over 20 years that will add to the current $500,000 in costs. It’s not the case with a hospital. Everyone hopes they don’t use it but are willing to pay for it to be there if and when they do need it. Let’s realize that a municipal pool is a quality of life expense, like my Porsche.

Actually, the Porsche analogy isn’t really appropriate. I don’t want a Porsche at any cost. A pool? A pool I might be okay with. It depends on the cost

The next post will offer some back of the envelope calculations on the cost to build and operate a pool. They won’t be right, but they’ll be closer to right than wrong.

Enhanced Snow Removal Services – Cost Estimates

16 Saturday Dec 2017

Posted by Jo Bossart/ParrySounds.com in Budget/Financial, Parry Sound, Reflections

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budget, Capital Investment, Infrastructure, Opinion, parry sound

At this past week’s budget meeting there were a few questions of Staff. One of the questions raised concerned snow removal services this year. It probably related to the snowfall we received last Sunday where the streets were pretty ‘dirty’, at least when I ventured out at about 4:00 PM. This was pretty much in the middle of a snowfall that dumped about 15 cm of snow, following a larger amount the day before. I wasn’t too surprised. Even Bowes Street was only partially plowed and there was more snow falling.

The Director of Public Works response can be heard on the Budget Meeting video available through the Town’s website on YouTube. In summary, his response was that performance met and exceeded provincial guidelines and that Staff were tapped out at that point in terms of hours worked dealing with the snowfall over the previous few days. There are regulations in terms of the hours that personnel can work, and that limit had been reached.

The discussion then turned to the possibility of hiring temporary workers to manage these snow events. It turns out that adding contract workers is not that simple in terms of existing labour contracts and the requirement to have qualified individuals. It seemed there was an interest on the part of at least one member of Council to look at increasing the level of service for snow management. Let’s take a look at what that might cost.

Before we get to the numbers, let’s remember that you can have any two of Price, Quality and Schedule. An attractive price on a quality item might require you to wait for it’s delivery because if it’s a bargain it’s probably in short supply. Or you can have a good price and quick delivery, but suffer in terms of quality. In the case of Parry Sound snow removal we are getting good quality snow removal at an acceptable price. But we don’t get it as quickly as some would like. Alternatively, we might be able to get quicker snow removal if we were willing to sacrifice quality, possibly operator, equipment, public and property safety, at the current price. If we want to get current quality levels and quicker snow removal, we will need to pay more. So how much more? Here‘s a back of the napkin calculation:

Additional Expenses:

3 Additional staff @ $100,000* – $300,000 per year
1 Additional 20-Ton Truck @$200,000 – $45,000** per year
1 2-Ton Truck with Blade @$60,000 – $15,000 per year**
1 Additional Sidewalk Plow @$170,000 – $35,000** per year
Additional Salt and sand – $15,000 per year

Total ~ $400,000 per year

This total of $400,000 per year additional cost when compared with the current snow budget of about $1 million per year seems in the right ball park.

There would be some other benefits from this increased investment in Public Works. Because the additional staff would be hired for a full year it is likely that Public Works could take on additional projects in the non-snow months, or even provide summer support for to the Parks and Recreation department, providing an overall better level of service to Town of Parry Sound businesses and residents. It might also mean that there would be less need for summer students, a savings of perhaps $30,000.

Assuming some savings in work contracted out to non-Town employees and fewer summer students, it’s possible that the burden of cost might drop to an additional $350,000 per year. On a property tax basis this would translate into a 3.5% increase in taxes. Residents paying $3,000 per year in property taxes would see an increase of perhaps $100 per year. Depending on individual assessments, some would pay more, and others less.

Before I started this short analysis I thought it would be more expensive than that. Adding more staff and getting better snow management services, plus better services all year round, might just be a bargain. If you agree, you might want to contact a member of Council and share your thoughts on where additional services are needed.

I’ll have comments on the 2018 Budget next week.

Cost Estimate Comments:

* – salary, benefits, training, vacation, etc.
** – assumed lifetime of 6-years, including interest, maintenance, fuel

In theory, the existing equipment could be used 24/7 if there was additional staff to operate the machines, and there was support for the necessary maintenance. The equipment would have a reduced lifetime when compared with the current budget. Wear and tear is more related to distance and hours, not whether a plow is pushing 10 cm or 20 cm of snow. It probably makes sense to have more equipment to provide more timely service than have one set of personnel waiting for their shift to start if more people on the streets would improve service and better meet the Public’s expectations. A broken piece of equipment upsets any well planned schedule.

Parry Sound Budget Meeting Tonight – 2017-12-12

12 Tuesday Dec 2017

Posted by Jo Bossart/ParrySounds.com in Budget/Financial, Parry Sound, Town Council

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budget, Capital Investment, parry sound, PS Power, Town Council

It starts at 6:00. While the discussion portion will be broadcast, the Town has suggested that the presentation portion will not be available because of technical issues. So, if you plan to watch the session live or later, be sure to download a copy of the budget document to follow along. The Town has a link to the budget at Combined Agenda.

Why bother with following the Town of Parry Sound Annual budget? The short answer is that it lets you know what the Town has planned for the next few years. Nothing gets done without a budget, and this is where the Town lays it all out, for as long as five years in terms of capital investments. For example, there is a tentative capital line entry in 2023 for an Aquatic Centre. There are a thousand stories in the Parry Sound budget and that is only one of them.

Speaking of budgets, did you read the article in the Ottawa Citizen concerning the Blind River debt, about $50 million, related to solar installations? It has a little bit of a parallel in Parry Sound, but with a better outcome. Almost 7 years ago the Town was approached about investing in a solar program on Town property. The suggestion was that the Town could make money by producing power at a lower price than it could sell it back to the Province. The Town was given an option to cover all costs, or co-invest. I attended the council meeting where the presentation was made by a consultant, and read the supporting documents. It seemed like BS to me. Lots of risk and limited payout. The meeting was held in the top of the Children’s Aid building. As the consultant was leaving, I stepped outside and asked him some more questions about the basis of the propsal, probably a little agressively as I smelled BS. I was told to leave him alone by the accompanying Town of Parry Sound Operations staff person. In the end I sent a letter to Town Staff with my thoughts. In their wisdom, Council declined not to go forward with the solar investment. It might have ended up not so different that the Blind River situation.

The Town is once again looking at investing in solar energy. This time by only supplying the land with Lakeland Power making the financial and management investment. There is still is some risk to the Town as a shareholder in Lakeland Power, hopefully it’s minimal and shared with the other investors.

Council Agenda Preview – October 17, 2017

15 Sunday Oct 2017

Posted by Jo Bossart/ParrySounds.com in Parry Sound, Town Council

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Agenda, Capital Investment, Infrastructure, parry sound, PS Power, Stockey Centre, Town Council

There are some interesting items on this week’s council agenda. The most interesting in my opinion, 9.1.3 – Succession planning and organizational restructuring, was the subject of a separate post and won’t be discussed here. These are this week’s highlights:

Closed Session – Item c.
Probably a disposition of the CP Station. The likeliest buyer would be the Festival of the Sound. I hope there will be a true arms length approach to this transaction.

Items 5.3, 9.3.1 – Solar Power Project – A Clean Energy Powered Future.
Oh boy, let’s build and be responsible for more infrastructure. Investing in roads and water I understand. It’s necessary and there is no practical alternative to having the Town build and manage it. Solar power is the best alternative for the desert – lots of sun, high in the sky, and not much in the way of rain or cloudy days. In our part of the world the best carbon free energy investment is hydroelectric and offshore wind. My first sense is that this is not something we should be getting involved with. Why are we competing with for profit businesses. Solar technology is still first generation, like copper phone lines were twenty years ago. If it’s about being environmentally caring, can’t we take credit for the carbon free generation at the Cascade Street power plant? If we can find a party that wants to lease the McFarlane Landfill site, and sell us solar power at market rates – let’s consider it. Read the full R&R for a sense of what’s involved.

8.3 – AMO (Association of Municipalities of Ontario) Opposes Proposed Changes to Public Health System.
If the experts tell us something we don’t want to hear, well then let’s make our own uninformed decisions. That’s the current approach south of the border.

9.4.1 – Stockey Centre Roof & Siding Project – Grant Application.
It seems that the million dollar repairs to the Stockey Centre is on the agenda and will be approved. Makes sense, all things considered. Do you think that people were anticipating and budgeting for this type of expense when the Stockey Centre was first approved? That’s why you don’t make investments in things that are not ‘mission critical’ unless you have money to waste.

Selected Agenda Items

Closed Session

b) personal matters about an identifiable individual, including municipal or local board employees. (Appointment of Integrity Commissioner) (CAO Recruitment)

c) a proposed or pending acquisition or disposition of land for municipal or local board purposes. (CP Station)

Deputations

5.1 – Becky Pollock and Sue Woodhouse, on behalf of the Parry Sound Active Transportation Committee. Re: Request for signage support and contribution on the trail link extending from Mall Drive along Parry Sound Drive to the Nobel Trail. Also request support to name the trail link “Wink’s Link” in recognition of Wendall Fisher’s contribution to the building of this trail through his work in the Parry Sound Area Active Transportation group.

5.2 – Terry Zanussi, Chair, Parry Sound Public Library Board. Re: Introduction of Rita Orr, CEO of the Parry Sound Public Library.

5.3 – Forrest Pengra, Manager of Infrastructure and Technology, Town of Parry Sound; Vince Kulchycki, COO Lakeland Power and; Kurt Robertson, Business Development Director AMP Energy. Solar Power Project – A Clean Energy Powered Future

Consent Agenda

8.3 – AMO (Association of Municipalities of Ontario) Opposes Proposed Changes to Public Health System. Resolution. Whereas the provincial government is considering far reaching changes to the public health system based on recommendations made by the Expert Panel on Public Health in their report “Public Health within an Integrated Health System” released on July 20, 2017; and Whereas the Board of Directors of the Association of Municipalities of Ontario (AMO) and their Health Task Force, does not support the recommendations of the Expert Panel on Public Health and is urging the government not to adopt them; and Whereas if the Expert Panel recommendations are implemented, it will completely change and dilute, over time, the mandate of the local public health system by integrating it with the health care system; and Whereas there was no analysis provided by either the Expert Panel or the Ministry of Health and Long-Term Care on the implications of this proposed integration from either a patient, program/service, or cost benefit analysis perspective; Now, Therefore Be It Resolved that Council for the Town of Parry Sound supports AMO in their conclusions about this report and is voicing Council’s opposition to this report to Minister Dr. Eric Hoskins; and Further that this resolution be provided to AMO, Norm Miller, M.P.P., West Parry Sound Municipal Councils and the West Parry Sound Health Centre.

Resolutions and Direction to Staff

9.1.1 – Naming of Town to McDougall Trail Link. Resolution. That Council fully supports the naming of the ‘Link’ trail to McDougall “Wink’s Link Community Path” and that an appropriate sign be constructed at the Town entrance to the Trail to be funded from the Trials Master Plan budget at a cost of up to $1,500.

9.1.2 – Bill 68, Modernizing Ontario’s Municipal Legislation Act (Changes to the Municipal Act, 2001, the Municipal Election Act, 1996 and the Conflict of Interest Act) Resolution. That the Staff Report regarding Bill 68, Modernizing Ontario’s Municipal Legislation Act, 2017, be received for information purposes.
Direction (For Direct Staff Follow-up). That the Clerk be directed to update Parry Sound’s policies and by-laws affected by Bill 68 as they pertain to the Municipal Act, the Conflict of Interest Act, and the Municipal Elections Act.

9.1.3 – Succession planning and organizational restructuring. Resolution. That the Succession Planning & Organizational Restructuring report dated October 17, 2017 as attached be approved.

9.3.1 – Solar Power Project – A Clean Energy Powered Future. Direction. THAT Council set the goal of 100% of Town buildings and operations using only electricity from renewable energy sources and supports in principle, the use of Town owned lands, particularly the former McFarlane Landfill site for solar power generation and, THAT the Manager of Infrastructure and Technology be directed to initiate a request for proposal process to select a supplier for the review and potential development of solar generation net metering projects on Town owned property(s), AND THAT staff bring a report back to Council for consideration and award to a potential supplier following the evaluation of any proposals received.

9.4.1 – Stockey Centre Roof & Siding Project – Grant Application.
Resolution. 1. That Council authorizes that application be made to the Department of Canadian Heritage/Canada Cultural Spaces Fund for the Stockey Centre roof and siding project in the amount of $705,525. representing 50% of total project costs; and That Rob Mens be confirmed as the person with signing authority. 2. That in the event the funding application is approved, Council approves an additional $5,600. for debenture for 2017/2018 for this project. Resolution postponed at the September 5, 2017 meeting.
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.

9.4.2 – Regional Innovation Strategy Initiative. Direction. 1) That the report be received for information purposes; 2) That the Town partner with the Parry Sound Muskoka Community Network by providing meeting space for focus group and information sessions as required, at no cost; and 3) That the Town’s Web site and other forms of social media be utilized to promote participation in the development of a Regional Innovation Strategy.

Council Agenda Preview – August 8, 2017

07 Monday Aug 2017

Posted by Jo Bossart/ParrySounds.com in Parry Sound, Town Council

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Agenda, By-Law, Capital Investment, DBA, Infrastructure, parry sound, TOPS Financial Analysis, Town Council

This week’s meeting of Parry Sound Council is packed with a number of items. It’s a bit of a mix of operational and organizational issues. I have provided comment (italics) for several of the agenda items.

b) personal matters about an identifiable individual, including municipal or local board employees (Human Resources)
c) a proposed or pending acquisition of land for municipal or local board purposes. (potential land acquisition) (Waterfront development)
Waterfront development continues to be on Council’s closed session agenda without any information being shared with the public.
d) labour relations or employee negotiations (personnel matter)

Correspondence

4.2 – Ministry of Finance. Transitional mitigation payment to eligible municipalities re: tax exemption for Long Term Care Homes

Deputations

5.1 – Chris McDonald & Erin Cardy. Splash Pad for Parry Sound

5.2 – Thomas Buttineau. Needles & Addictions, A Cry for Help

Resolutions and Direction to Staff

9.1.1 – Tender – Bowes Street Retaining Wall. Resolution. That upon the recommendation of Triton Engineering Services Limited, Council accepts the tender from Weeks Construction Inc. in the amount of $218,067.40, including HST, for the construction of the northwest retaining wall on Bowes Street and Louisa Street, this tender being the lowest tender of three tenders received; and further, That Council increase the allotment in the Capital Replacement Reserve Fund to cover the shortfall of $58,067.40.

9.1.2 – Pre-budget approval – Vacuum Truck. Resolution. That Council authorize pre-budget approval in the amount of $350,000 to purchase a new vacuum truck and further; That Council approve single sourcing the equipment through an authorized Vactor dealer.
This apparently is in the budget as part of the long term equipment replacement program.

9.2.1 – Cultural Spaces Canada Grant Application – Stockey Centre Audio and Projection Systems. Resolution. That Council approves the request for funding from the Department of Canadian Heritage, Cultural Spaces Canada, in the amount of $23,349 representing 50% of the total costs of audio and projection upgrades at the Charles W. Stockey Centre for the Performing Arts.

9.3.1 – Henvey Inlet EMS Service. Direction (For Direct Staff Follow-up): That upon the recommendation of the EMS Advisory Committee staff prepare documentation to justify the application to the Ministry of Health for 100% funding of a base located in Henvey Inlet FN and that staff enter negotiations with MOH to implement and manage the Henvey Inlet base.

9.4.2 – Succession Planning. Resolution. That September 26, 2017 at 6:00 pm be scheduled as a Special Closed Council meeting for the purpose of succession planning.
I believe that the Town will be looking to fill the CAO position in the next couple of years. I hope that the new CAO, whether promoted from within or hired from the outside, will be a resident of Parry Sound, not living in one of the lower tax surrounding communities. I have no issue with Staff living outside of Parry Sound but I believe the CAO, who directs the activities of Staff, needs to experience life in Parry Sound, as a resident. It’s pretty easy to overlook, or not understand, any number of quality of life issues of local residents and businesses if you don’t live here. Yes, people might let you know about what is right and wrong about being a resident of Parry Sound, but there needs to be first hand experience. Just my two cents. It may be a little like the experience of our neighbours to the south who have a president who doesn’t really ‘get’ the issues because he prefers to retreat to his out of Washington residences, rather than sit in the White House and get first hand experience.

9.5.1 – 2016 Reserve and Reserve Fund Report. Resolution. That Council receives the 2016 Reserve and Reserve Fund Report, attached as Schedule A, in compliance with the Town’s Reserve and Reserve Fund Policy.

9.5.2 – Reserve Transfers – Downtown Business Association. Resolution. That Council hereby approves a transfer of up to $8,000, conditional on a minimum $2,000 contribution from the Downtown Business Association, from the Tax Rate Stabilization Reserve for the purpose of funding the costs of a strategic plan for the Downtown Business Association.
It’s my sense that Council and Staff aren’t happy with the performance of the Downtown Business Association. The Town wants something to happen but they don’t really want to invest their own time and effort. They had an active Downtown a couple of years ago, but some members of Council resented their activism. Oh dear, how to find the right balance?

9.5.3 – Reserve Transfers – Website. Resolution. That Council hereby approves a transfer of $4,800 from the Tax Rate Stabilization Reserve for the purpose of funding the implementation costs of the Form Builder module from e-Solutions.
This seems like a good investment.

9.5.4 – POA Write-offs. Resolution. That Council for the Town of Parry Sound, hereby approves the write-offs for the Provincial Offences Act Court outlined in Schedule “A” attached.
Another round of ten-plus year old write offs; the total amount is $5,300.

9.5.5 – 2018 Budget Schedule. Resolution. That Council hereby approves the 2018 budget preparation schedule as set out per “Schedule A” attached.
Ladies and gentlemen, open your spreadsheets. It would be nice if the schedule included a note of what steps were open to the Public and when Staff and Council would prefer to receive public comment. How about a date of when the first draft of the budget will be available to the Public and a deadline for Public input and comment? With council meetings being streamed online it is likely more people will participate in the process, possibly too late to provide meaningful input.

9.5.6 – Creation of Hotel Tax. Direction. That the Director of Finance be directed to create an ad-hoc committee including industry members, to further research, develop and design a hotel tax system for the Town of Parry Sound.
This fits in with 9.6.1, and is necessary if the Town is to provide residents, visitors and businesses with the level of amenities and services they expect. Improving the business climate in Parry Sound generates little incremental revenue, at best it stabilizes the tax base.

9.6.1 – Local Share – 1% Sales Tax Increase. Resolution. Whereas municipal operating costs Provincially are growing at $1 billion annually, just to maintain current services, and Whereas the total annual municipal budget gap as calculated by AMO is estimated to be $4.9 billion annually for the next 10 years to maintain current services levels and finance infrastructure needs, and Whereas property tax and user fees would have to increase at about 8% per year to close that gap, and Whereas municipalities own approximately two-thirds of all public infrastructure, all of which needs to be maintained, and Whereas AMO has reviewed dozens of options to help finance municipal governments, and Whereas the Town’s 2016 Asset Management Plan estimated a backlog of approximately $36 million and an annual infrastructure funding gap for tax-supported assets of $4,626,000. Whereas Council has agreed and implemented a 1.8% annual capital levy in addition to acceptable cost of living increases, Now therefore be it resolved that Council of the Town of Parry Sound supports AMO’s ‘Local Share’ initiative that would see a new proposed 1% (HST) sales tax increase, to support local infrastructure investment.
Yup, the money has to come from somewhere. If you don’t like the 1% sales tax feel free to offer the Town alternatives. This tax would in some small part capture a contribution from our neighbours and visitors who appreciate and make use of Parry Sound’s services and infrastructure. I’m okay with a splash park, but who should be responsible for the costs?

By-laws

10.1.1 – Funding Agreement – Waubeek Street. Being a by-law to authorize the execution of a Clean Water and Wastewater Fund Transfer Payment Agreement between Her Majesty the Queen in Right of Ontario as represented by the Minister of Infrastructure and The Corporation of the Town of Parry Sound.
This represents a $1.1 million provincial grant for the Waubeek Street reconstruction. The total project is estimated to cost $5.4 million.

10.2.1 – Site Plan Approval Application – The Parry Sound Affordable Housing. Development Corporation – 82 Gibson Street. Being a By-law to grant Site Plan Approval and authorize the execution and registration of a development agreement with 82 Gibson Street (The Parry Sound Affordable Housing Development Corporation).
I guess this will be approved as the developer has already started building the foundation.

10.2.2 – Site Plan Approval Application – 1793951 Ontario Inc. / Greystone Project. Being a By-law to grant Site Plan Approval and authorize the execution and registration of a development agreement with Granite Harbour/1793951 Ontario Inc./Greystone Project Management Inc. – 11c Salt Dock Road.
This represents the third phase of the project. After much concern about the lack of activity following the first phase of Granite Harbour, the development is moving forward nicely.

10.5.1 – Accounts Receivable Policy. Being a By-law to Establish an Accounts Receivable Collections Policy.

10.5.2 – Tax Collections Policy. Being a By-law to Establish a Tax Collections Policy.

10.5.3 – Asset Management Policy and Asset Management Strategy. Being a By-law to Establish an Asset Management Policy and Resolution, That Council hereby adopts the Asset Management Strategy, attached as Schedule A.

I’ll be there. If you can’t make it check out the live stream.

Life on the Big Sound (August 2017)

Council Agenda Preview – July 18, 2017

16 Sunday Jul 2017

Posted by Jo Bossart/ParrySounds.com in Parry Sound, Town Council

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Agenda, Capital Investment, DBA, economic development, Planning, Seguin, Town Council

This is a very slim agenda with no by-laws to be reviewed an approved. There are a few surprises but nothing of concern, a bit of real estate buy and sell comes to mind. The key items are listed below.

Closed Agenda

b) personal matters about an identifiable individual, including municipal or local board employees (Parry Sound DBA Governance, DBA Correspondence)
c) a proposed or pending acquisition of land for municipal or local board purposes. (Waterfront)

Correspondence

4.1– David Penfold, Pointe Au Baril resident. Request to have the words Parry Sound or Welcome to Parry Sound put on the north end water tower located in McDougall.

4.2 – Jane Jones, Chair, Artists Round the Sound (ARTS). Thank you note to Council for the 2017 grant through the Municipal Assistance Program (MAP).

4.4 – Elliot Sherman, Project and Construction Manager, SYN*MH LTD. Thank you letter for Council’s support of his company’s intention to carry out research, design and construction of the micro-home prototypes.

Deputations

5.1 – Andrea Gordon and Andrew Parker, (OPSEU) We Own. The costs of privatization vs. the benefits of public services.

5.2 – Ingrid Mueller, Chair and Neil Pirie, Manager, Parry Sound Area Airport Commission. Rehabilitation of runways at the Parry Sound Area Airport Commission.

Consent Agenda

8.1 – Support for Natural Gas Grant for the Township of Seguin. Resolution. Whereas the Township of Seguin wishes to expand access to natural gas within the Township; and Whereas one of the Strategic Priorities for Council for the Town of Parry Sound is West Parry Sound Area Cooperation; Therefore, Be It Resolved That Council for the Town of Parry Sound supports the Township of Seguin’s resolution, attached as Schedule “A”, for an application to be submitted by a natural gas distributor or supplier to the Government of Ontario, for a grant from the provincial Natural Gas Grant Program to expand the natural gas system to service the Township of Seguin; and Further that a copy of this resolution be forwarded to the Township of Seguin to be included with the application to Ontario’s Natural Gas Grant Program.

Resolutions and Direction to Staff

9.1.1 – 2016 Reserve and Reserve Fund Transfers at Year End. Resolution.
1. That Council approves the transfers to and from Reserves as summarized in Schedule “A”;
2. That Council approves the transfers to and from Reserve Funds as summarized in Schedule “B”;
3. That 2015 and 2016 capital projects which were funded from reserves may be completed in 2017 as previously budgeted, as these projects were previously approved and do not impact the 2017 levy requirements.

9.1.2 – Proposed Provincial Asset Management Planning Regulation. Direction (For Direct Staff Follow-up). That the Director of Finance and POA Court Services send a letter to the Province of Ontario outlining that Council supports the MFOA letter dated July 4, 2017 regarding the proposed regulation EBR 013-0551, and that the proposed requirement for engineering certification should be amended.

9.3.1 – Tender – BOCC Dehumidifier. Resolution. That Council accept the tender from Cimco Refrigeration for the supply and install of one (1) RefPlus DDE-2500 Ice Rink Desiccant Dehumidifier, for a total of $31, 523.61, including HST.

9.3.3 – Consent Application – B 17/2017 (PS) – Halvorson. Resolution. That Consent Application No. B 17/2017 (PS) – Halvorson – Addie Street, be supported subject to the following conditions:
1. Payment for cash-in-lieu of parkland dedication in the amount of $5,354.00
2. An easement be dedicated over the private water/sewer lines in favour of the retained lands.

9.6.1 – Town Property – Parry Sound Drive. Direction. That the Principal Planner be directed to bring a Report & Recommendation to the September 19th Council Meeting regarding the potential sale and redevelopment, and rezoning if necessary, of the Town-owned property identified as a portion of the Parry Sound Drive road allowance to the west of Parts 2-4 of 42R19097 and to the west of Part 1 of 42R19887, being a portion of PIN: 52105 0429 along Parry Sound Drive.

Council Agenda Preview – June 6, 2017

04 Sunday Jun 2017

Posted by Jo Bossart/ParrySounds.com in Parry Sound, Town Council

≈ 1 Comment

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Agenda, By-Law, Capital Investment, Infrastructure, parry sound, Planning, Strategic Plan, Taxes, Town Council

This week’s meeting of Council is light on ‘meaty’ issues, but sets the path for some important future initiatives. I have listed a few of the more interesting items in the sections below, with comments as appropriate.

But first, a few comments on this past week’s Special Meeting of Council to Review Strategic Priorities. From my perspective, it seemed much like a made for show production. The meeting lasted about 35 minutes and was for the most part very formalized. This followed a 60 minute closed session where I imagine all of the relevant discussion was held and general agreements were reached. The ‘Dotmocracy’ process was conducted with little surprise, and even less prioritization. A suggestion to the organizers, if there are five topics for review, provide the users with only three green stickers. That will help folks to make some decisions in terms of what really is a priority. It has been noted that the enemy of the best is the good. Obviously, none of the projects, which included last year’s priorities and this year’s new ones, were likely to be outright rejected, especially if there was previous discussion in Closed Session. So which of the 5 strategic priorities were both important and urgent? I couldn’t tell from the voting or the discussion. One of the best ways to find yourself in debt is to decide that a new car, a new snow machine, braces for the nine-year old, and a nice winter vacation are all 6 Green priority items. Sometimes you need to decide what is really, really the most important, and most urgent.

Here are the Dotmocracy results from Tuesday night:
Great North Road Infrastructure – 6 Green
Parry Sound Road Extension – 6 Green
Closed Item A – 6 Green
Innovation Park – 4 Green, 2 Yellow
Tourism – 3 Green, 3 Yellow

So what is Closed Item A? It seems to be something new, and an initiative that requires Town infrastructure investment. I have an idea of what it might be, but I may be totally wrong. What do others think it might be? Here are some clues:

It ranked among the top of strategic priorities. So it is ‘important’, at least for now.
It’s something new, or at least something that has once again become a priority.
It’s unlikely to be the casino project. That would largely be addressed with the Great North and Parry Sound Road priorities.
The Town recently spent about $1 million on the boathouse properties on the waterfront.
The Town also spent about a quarter million dollars on property across Oastler Park Drive from the Canadian Tire.
The Town last year entered into a memorandum of understanding regarding access and future servicing with the folks at Beatty Big Sound Property. This relates to the property north of the Smelter Wharf.

If you have any ideas you can provide a comment to this blog post or, if you prefer privacy, send me an email at parrysounds@gmail.com. I will share your thoughts but keep your name confidential. Let’s use the “wisdom of the crowd” to see if we can figure this one out.

If you want to skip forward to the more interesting agenda items here is what I suggest: 8.1, 9.2.1, 9.2.2, 9.6.1 and 9.6.2.

Closed Session

b) personal matters about an identifiable individual, including municipal or local board employees (Licensing Appeal, Appointment)
c) a proposed or pending acquisition or disposition of land by the municipality or local board; (Request to Transfer Lease)
d) labour relations or employee negotiations. (Performance Review, Director of Emergency and Protective Services)

Correspondence

4.1 – Debbie White, Co-founder World Oceans Day. Raising awareness of World Oceans Day June 8, 2017 asking Parry Sound to recognize and support the need to protect our water, waterways and oceans for the life they give us and offering ways to educate the public on ways to protect our waters.

4.2a&b – Cheryl Gallant, MP Renfrew-Nipissing-Pembroke. Removal of the tax-exempt portion of remuneration paid to local officials and the Municipality of East Ferris’ resolution. East Ferris Resolution in support of Ms. Gallant.
See 8.1 below for comments.

4.3a&b – Marlene Bisson. Questions about the Service Line warranty program, water and wastewater and tax concerns with responses from J. Boggs & T. Pinn

4.4 – Parry Sound Friendship Centre. Invitation to Mayor & Council to attend their 50th Anniversary celebration June 17th.

Deputations

5.1 – Vanessa Backman, Parry Sound Tourism. Providing an update on Parry Sound Tourism for 2017

5.2 – Margaret Walton. Regarding Habitat for Humanity.

Consent Agenda

8.1 – Removal of the tax-exempt portion of remuneration paid to local officials. Resolution. That Council for the Town of Parry Sound supports the letter from Cheryl Gallant, Member of Parliament for Renfrew, Nipissing, Pembroke and the resolution from East Ferris, attached as Schedules “A” and “B” which are against the removal of the tax- exempt portion of remuneration paid to local officials as stipulated in the 2017 Federal Budget; And further that copies of this resolution be forwarded to Premier of Ontario Kathleen Wynne, Local MP Tony Clement, Local MPP Norm Miller and the West Parry Sound Area municipalities.
This tax-exempt issue concerns the current situation that about 1/3 of the remuneration received by members of Council is not subject to tax. This is intended to compensate these individuals for their out-of-pocket expenses related to discharging their duties as a Councillor or Mayor. Since most councillors serve in addition to their regular jobs, the tax on this 1/3 of their council remuneration would be rather significant. I believe that members of Council currently are reimbursed for any significant travel expenses, and in some cases receive honoraria for serving on certain boards, so it may be time for this little perk to disappear. If they want to avoid the additional tax burden they should just tuck this amount into their RRSP.

Resolutions and Direction to Staff

9.2.1 – Revised Organization Chart for Development and Leisure Services Resolution. That Council approve the revised Organization Chart for the Department of Development and Leisure Services, per Schedule “A” attached; and That Resolution No: 2013-207 be rescinded.
The actual change here is a matter of tidying up the organogram for Development and Leisure Services. But the organogram is interesting, especially the large number of staff, full and part-time associated with the Stockey Centre. That certainly helps explain why the Town wants to keep it non-union. Click on the image below to see the ‘big picture’.

9.2.2 – 2017 Municipal Assistance Program. Resolution. That Council approve the 2017 Municipal Assistance Program allocations per Schedule “A” attached.
The numbers will be decided in closed session and announced in open session.

9.4.1 – Booth Street Park Water. Resolution. That a water service be installed to the Booth St. Community Park to be funded from the Parks Reserve.

9.6.1 – Train Whistle Cessation. Direction. That the Director of Public Works be directed to bring forward a report and recommendation for the July 4, 2017 Council meeting regarding train whistle cessation.
This is an interesting new initiative. Can they perhaps also look into having the railways better service their ‘greasers’ to reduce the amount of squealing as the trains round corners? We have a few curves in Parry Sound if you haven’t noticed.

9.6.2 – Potential Hotel Tax. Direction. That the Director of Finance be directed to bring forward to the September 5, 2017 Council meeting, pending release of regulations, a report and recommendation regarding a potential hotel tax.
Another interesting initiative. The Town almost totally depends on property taxation for revenue. If more tourists come to Parry Sound and spend more money it doesn’t translate into more revenue for the Town. That may explain why the Town has invested little in the Downtown with the exception of free parking. The bulk of new revenue will come from new construction like the Breakers project at the Smelter Wharf. Adding a hotel or hospitality tax would deliver a new and additional source of revenue. Better to get it in place now before any additional investment is made in capacity. Eventually a restaurant tax?

By-laws

10.2.1 – Bobby Orr Community Centre: Pro Shop Lease Agreement. By-law 2017-6743. Being a by-law to authorize the Mayor and Deputy Clerk/CAO to execute an agreement with 4 Sports Inc., for the purpose of Pro-Shop operation at the Bobby Orr Community Centre for a one (1) year period.

10.3.1 – On Call Municipal Law Enforcement Officer. By-law 2017-6744. Being a By-law to authorize the Mayor and Deputy Clerk/CAO to execute a service contract with Cameron Marshall for the provision of On Call Municipal Law Enforcement Services.

10.3.2 – Appointment Bylaw – Chris Everitt, Earl Smallwood, Tom Evans, Cameron Marshall, Municipal Law Enforcement Officers. By-law 2017-6745. Being a bylaw to appoint Chris Everitt, Earl Smallwood, Tom Evans, Cameron Marshall as Municipal Law Enforcement Officers.

10.5.1 – Business Improvement (BIA) Levy by-law – Downtown business area. By-law 2017-6736. Being a bylaw to Adopt the Estimates of the Board of Management of the Downtown Parry Sound Business Improvement Area and to Strike the Tax Rate Thereon for the Year 2017.

Columbine on the North Shore Rugged Trail (May 2017)

Parry Sounds

~ Ideas, Opinions and 'Green Shoots' In and Around Parry Sound

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