The Financial Table Is Set. What's Next?

When I decided in June 2018 that I would not run for Mayor again, I knew that this time of transition would occur. Back then we hoped that most tasks would be completed, leaving the next Council the opportunity to follow their own path.

And while we have completed most major projects – including officially opening the new Meridian Community Centre – some important financial and land transactions that will need to wrap up during the new Council term.

I liken it to having the table set and the meal ready to be served. Now the Town is waiting to see what the new Council will do. Will they follow the menu and serve the meal as prepared? Will they scale it back? Will they add to it? Or, will they rip out the table cloth and watch the glasses smash on the floor?

So, what is on the menu and has been prepared? What is in place for the financing for the new Meridian Community Centre and for the Town of Pelham?

You will recall that the financing plan for the $35.5 million Community Centre budget included a number of elements:

Tax Levy Debenture:

The Town took out a $9.1 million 30-year debenture in 2016. This is like a mortgage that you might have on your house, but with two major differences: 1) it’s for a very low rate (3.34%) and 2) it’s the same amount for 30 years. That means that as interest rates increase the Town continues to pay the historically low, locked-in rate. The Town already included the $47 increase for the average home (valued at $309,200 in 2016) in your 2016 property taxes. Your future taxes do not have to be increased any more for this debenture.

This is the only part of the financing for the new Community Centre that is being funded by your property taxes.

Development Charges:

The outgoing Council also set in place the process for new growth in the Town to pay $12.1 million of the new Community Centre via Development Charges (DCs). DCs are charged on each new unit or home built in the Town. A portion of these charges cover the capital costs for “indoor recreational facilities” – in our case for the new Community Centre. Council updated the entire DC Bylaw in 2018 to capture even more funds to cover growth related projects. And, while the DC Bylaw has to be renewed at least every five-years, the financial plan is initiate a “scoped” update – just for “indoor recreational” capital costs – either each year or, at minimum, every two years. At no cost to existing tax payers, an annual update could help to pay down this Centre’s DC component even quicker.

Donations:

You will recall that our initial financing budget hoped for $3 million from community fundraising. Because of a very generous community we actually raised more than $3.3 million in gifts and pledges to date! And, the new Council could promote more fundraising opportunities -- like completing the community seat campaign, for example.

Land Sales:

The initial budget also called for $12 million to be raised by sale of lands. I am pleased to report that we have generated $11.7 million from land sales so far. These are firm offers, but they are conditional. 

This calculation includes the $3.0 million offer of a portion of the former Arena property for a development that will follow the plan generated by the local community. (That community plan calls for selling about 55% of the Haist Street property for single family homes and townhouses, and keeping about 45% in public ownership.)

Some of these land transactions close before the end of 2018, with the rest closing in early-2019. And, the Town still owns approximately 4 acres of lands surrounding the new Community Centre that should be sold in 2019 to generate more revenue.

Costs Under Budget / Revenue Exceeds Costs:

As reported by the Community Centre Oversight Committee, the overall project actually came in at $35.4 million – that’s more than $785,000 under budget. (That’s thanks to the amazing efforts of the Ball Construction, Petroff Architects, the Oversight Committee, and Town Staff!)

If you add up each of the elements above, the revenue comes to $36.1 million and exceeds costs by $700,000.

Now, a few folks might argue that some of the revenue comes in over time – called “deferred revenue” in Municipal Financing parlance. Some of the fundraising, for example, includes multi-year pledges. And, as mentioned, the current land sales will close in 2018 and during the second quarter of 2019.

For the fundraising, this means that the new Council should “steward” the donors – be sure to continue to thank them and honour their agreements – so that their support continues. And, the new Council can continue promoting seat sales in the Accipiter Arena.

As mentioned already, the new Council can continue to sell the additional lands in East Fonthill – and this should more than cover any financing costs for the deferred revenue.

New Revenue from New Development:

While some people don't like the new homes and businesses in the Town, that growth was inevitable. Why? Because the "urban boundaries" -- the areas where new homes and businesses could be built -- was added to the Town in 1990 for Fenwick and in 2000 for East Fonthill.

Our job as a Council was to work with you to plan the development in the best possible way to add to the Town.

And, the hundreds of millions of dollars in the value of those new homes and new businesses, means that the Town will receive millions of dollars of new property tax revenue. Our Council planned on using that revenue to pay down debt and build up reserves.

Impact by the New Council:

Obviously, the new Council will need to get up-to-speed on all elements of this financing plan – how the table has been set and ready to go.

Yet, there is a risk for our community. The new Council could alter these arrangements. 

For example, many recently elected Councillors have said that they don’t want to follow the plan that was developed by the local residents for the former Arena site; some said that they either want to develop another plan or keep the entire site for parkland. If they try to follow through with those statements and stop the land sale, they would hit the community with a multi-million loss of revenue in 2018.

Or, if they decide not to follow legal advice and do something to jeopardize the land-deal closings in East Fonthill, they could cause additional multi-million impacts in 2019.

Whose Issues? Each of Ours:

While I know in my head that after November 30 these are not the problems of myself and the current Council. Yet, I feel in my heart the deep care we each share about the Town’s future.

As a private citizen starting December 1, I will hope that the new Council will accept how the table has been set and follow this financial plan for the benefit of our entire Town.

Rededicating Ourselves to Peace

Hundreds of Pelham residents took time to gather with local Veterans, members of the Royal Canadian Legion and the Ladies Auxiliary, the 613 Army Cadets, the Pelham Fire Service, and others at the Veteran’s Park at the Fonthill Legion to commemorate and remember the sacrifices of Pelham’s Veterans.

Others also joined a nation-wide initiative called the “Bells of Peace” as they gathered at five Pelham churches – Holy Trinity, Fonthill United, Fenwick United, St. Ann Roman Catholic, and First Presbyterian. Each of these churches rang their bells 100 times at dusk to mark the 100th Anniversary of the end of the First World War.

This special year and each Remembrance Day it is right to remember those brave men and women who have served, and who continue to serve our country during times of war, conflict, and peace.

We honour them for their courage, their commitment, and their devotion to standing “on guard” for Canada.

Engraved on the cenotaphs throughout our Town and on the bricks at Veterans Park upon which we have stood for 10 years are the names of those from Pelham and area that were killed in service. May their memories also be engraved on our hearts.

The democratic freedoms that so many of us might take for granted – the freedom to express ourselves, to participate in cultural, religious, and political activities, to come and go as we please, to associate with whom we please, and to pursue a safe and happy life – are all due to the sacrifices of Veterans and those who serve today. They sacrificed their futures so that our future might be one of peace and happiness.

Yet, we must also recognize that war and conflict are man-made. They develop from traits inside each us and from our actions and inactions. War and conflict arise from those times when we have not sought justice, from those selfish moments when we have deadened our spirit to the needs and to the sufferings of others.

Instead of allowing those negative qualities to grow, let us strive to listen to each other with an open mind. Let us reopen our hearts to the needs of others.

Therefore, at this time, the 100th Anniversary of the end of World War One, let us be thankful. Let us never forget. Let us reopen our hearts to the needs and the sufferings of others. And, as we reflect on the “Bells of Peace”, let us rededicate ourselves to justice and to peace in our community.


Dave Augustyn served as the Mayor of the Town of Pelham and a Niagara Regional Councillor from 2006 to 2018. You may provide your ideas and feedback to Dave at daugustyn@cogeco.ca or check out his Dave Augustyn NOW columns at www.daveaugustynnow.blogspot.com.

Introducing Dave Augustyn Now

It has been my honour to serve as Mayor of the Town of Pelham and a Niagara Regional Councillor for the past twelve years. I launched my Online Journal in 2008 and since that time I’ve authored nearly 400 columns about community issues and the business of local government.

 As I transition by career from that of a political representative I look forward to continuing to share my observations about local politics and community matters via my newly renamed Online Journal ‘Dave Augustyn Now.’

Please note that the name of this Facebook Page will soon be changed to reflect my new URL: www.daveaugustynnow.blogspot.com. As always, I welcome your ideas and feedback. I can be reached via email atdaugustyn@cogeco.ca ~Dave

Premier Ford and Appointing Niagara's Regional Chair

And, so it begins…. We are hearing rumblings of at least one – Niagara Falls Councillor Bob Gale – testing the waters in an attempt to become the 2018-22 Regional Chair.

While the new term of Council officially begins until December 1, Regional Council cannot convene until the indirectly-elected Councillors – the 12 Mayors – are officially sworn in at the local Councils.

So, on Thursday, December 6 at 10:00 AM, the Regional Clerk will officially convene the inaugural meeting. She will first administer the “Declaration of Office” for the 19 directly and 12 indirectly elected members.

Then, the first and only order of business is the election of the Regional Chair.

Candidates from Council Only:
In the first phase of the election, the Regional Clerk will ask for nominations for candidates. Only newly-minted Regional Councillors can run as a candidate to become Chair. Following nominations, each candidate will have a chance to speak for five minutes.

While the Municipal Act does allow the election of any qualified elector from Niagara to be nominated and elected Chair, historic precedent, two Council resolutions (in 1991 and again in 2013), and confirmation from the Minister of Municipal Affairs, means that Council elects a Chair from the recently elected members of Council.

Run-Off Election and Secret Ballot:
If two or more candidates run for Chair, the Clerk will oversee the “run-off” election (like used in some political leadership contests). For example, if after the first ballot, no candidate receives a majority of the votes – 17 – then the candidate with the fewest votes “drops-off” the ballot, and Councillors will vote on the remaining candidates on another ballot. The voting continues until one candidate receives a majority.

Interestingly, while the Municipal Act allows for the option of secret or open ballots, Niagara Regional Council’s procedural bylaw stipulates that the vote for Regional Chair “shall” be a secret vote.

Believe it or not, the new Council actually considers a motion to destroy the ballots… I voted against this last time; I hope this new Council will do the right thing and release the ballots publicly.

Filling the Vacancy:
Following their election as Chair, the Councillor must “give up” his or her seat – creating a vacancy on Council. How is that seat filled? Regional Council follows the advice of the local City or Town Council. The options include a by-election, appointing the next candidate in the last general election, appointing another qualified elector. In the case of filling the Chair’s seat, precedent has been to appoint the next candidate in the most recent election – Tim Rigby after Peter Partington was acclaimed Chair in 2006; David Lepp after Gary Burroughs became Chair on a fourth-ballot victory in 2010, and Kelly Edgar after 18 voted to appoint Alan Caslin as Chair on the first ballot in 2014.

Horse Trading:
Sadly, this appointment system has significant drawbacks. First, it’s anti-democratic. We should be able to elect the Regional Chair – who is like the Mayor for Niagara – from across the entire Peninsula. Other Regions – like Waterloo – have been doing this for more than 25 years… You and I were to have elected the Chair “at-large” across Niagara this time, but Premier Ford and the PC Majority at Queen’s Park negated that election on Friday, 27 July 2018.

Second, the appointment system lends itself to “horse-trading.” We saw this in spades in 2014 when some Councillors traded their vote for Chair for something else. “If you vote for me, I will ensure that you get on the Police Board.” “I’ll support you if I can be chair of the Public Works committee.” Or, “I want to get on the Niagara Parks Commission. Can you guarantee that?” And, sadly, there was some bullyingly too: “We already have 22 votes for him. If you don’t support him as Chair, we will make sure your community doesn’t get any Regional investments.”

As you can see from the votes in 2014 – it was easy to figure out the single-ballot – this is where the so-called Cabal got their foundation. As nauseating as it is, some Councillors were actually given “who to vote for” cards so the Cabal could live-up to their Board appointment assurances. 

Again, an election at large would help sanitize appointments and help to stop this kind of Cabal formulation.

Ford’s Wildcards:

Not many agree, but I think the Ford Government can still impact the Niagara’s Chair election. Here’s how.

First, they could insist that nominations for the Regional Chair must be open to any Niagara elector (and not just from Council). Why would they do this? If they don’t like the option(s) for Chair from Council – like odds-on favorite Jim Bradley, for instance – they could open it up for someone else to run. It would mean that someone on the sidelines could throw their hat into the ring. Ford would take this option if there is an element of success for a preferred “outside” candidate.

Second, the Ford Government could go one step further and actually appoint the next Regional Chair. Yes, it is possible. It falls under the “Municipalities are the children of the Province mantra” that we heard during the 47-seats to 25-seats chaos with the City of Toronto election. And, as most people forget, the Provincial Government appointed Niagara’s Regional Chair from 1970 to 1985 – namely the beloved John Campbell.

But, why would the Premier even entertain these options? It would allow the Province to dictate and oversee a governance review in Niagara. At the recent AMO (Association of Municipalities of Ontario) conference, Municipal Affairs Minister Clark promised a “review” of Regional governments following this Fall’s elections. Appointing a Chair would ensure governance is dealt with this term. And, as a side benefit for the ruling Conservatives, it would stop Jim Bradley, life-long Liberal, from becoming the Chair. (The Tories could also use this step in Peel – where Brampton recently elected Patrick Brown as Mayor.)

Regardless of what happens in December, expect City / Town / Regional governance reform to be a top-priority for this 2018-22 term of Council. And, please call for a release of the ballots when the new Council appoints its Chair.

_____________________________________
6 November 2018:
For more information about the Chair's election, please see the Welland Tribune:
https://www.wellandtribune.ca/news-story/9007731-new-regional-councillors-mulling-over-next-chair/

Also, I was on 610 AM CKTB this morning about this issue. To listen, please click here.