Post by Annexation vs Amalgamation on Dec 13, 2005 10:36:28 GMT -5
Minutes of Public Meeting and Presentation of an Analysis of the Potential Separation of the Township of Georgian Bay from the District of Muskoka
Wednesday, January 31, 2001 – 7:00 p.m.
MacTier Memorial Community Centre
Present:
District Chair Gord Adams
Professor Harry Kitchen
Bill Calvert, Chief Administrative Officer
John McRae, Commissioner of Corporate & Emergency Services
Jim Green, Commissioner of Planning & Economic Development
Ian Turnbull, Commissioner of Community Services
Brian McLauchlan, Director of Public Works
Noel Waters, Director of Roads & Traffic
1. Call to Order
Chair Adams called the meeting to order and introduced Professor Kitchen and District staff.
2. Presentation of Report
Professor Kitchen provided some background information with respect to the municipal restructuring exercises he has been involved with. He stated that he had been requested by the District of Muskoka to examine the implications of the Township of Georgian Bay leaving the District of Muskoka. Prof. Kitchen stated that he analyzed the facts available and presented them in his report with no biases. He noted that there were no cases in Ontario where a lower tier municipality has withdrawn from a region or district. He did note, however, that the Township of Flamborough had been given the option of seceding from Hamilton-Wentworth when that region was undergoing a restructuring, however it was determined that the costs would be too high for all concerned and the initiative was abandoned.
By way of an overhead presentation, Prof. Kitchen outlined the estimated changes in annual operating expenditures if the Township of Georgian Bay was to separate from the District of Muskoka. He compared his estimates of the expenditure changes per household, $26 higher in Muskoka and $102 higher in Georgian Bay,
against those provided in the Georgian Bay/Archipelago restructuring proposal shown as $21 higher for Muskoka and $114 lower in Georgian Bay. Prof. Kitchen commented on the rationale for restructuring in terms of cost savings and community of interest. He noted that restructuring generally serves to spread costs
of services over a larger area.
Professor Kitchen reviewed estimated changes in annual operating expenditures in the areas of General Government, Engineering & Public Works, Community
Services and Planning. He noted that neither insurance costs nor debt were taken into consideration. Prof. Kitchen commented on the use of uniform water rates
throughout the District, how some areas subsidize others and the potential for increased costs if Georgian Bay were to separate. He also outlined the changes
that would occur in terms of community services if Georgian Bay were to become part of the Parry Sound District Social Services Administration Board (DSSAB).
Professor Kitchen commented that he could not find any differences in planning costs between his analysis and the restructuring proposal.
Prof. Kitchen pointed out a typographical error on p. 5 of his report; the figure in column 2 that reads -$2,448,860 should instead read -$2,484,860. He commented that he did not explore the cost of allocating assets and liabilities, but did note that
negotiations in this regard in other restructured municipalities had been very difficult. Prof. Kitchen noted that with respect to transition funding, the Province will not provide funds if the restructuring proposal suggests that costs will go up.
3. Questions/Comments
Mayor Mike Kennedy read a prepared statement that he had presented at a recent District Council meeting outlining his thoughts on Prof. Kitchen’s analysis and noted that that Prof. Kitchen had provided a response to the statement which had been distributed to the public at the outset of the meeting. Mayor Kennedy felt that the study ignored the benefits of the proposed amalgamation of the Township of Georgian Bay with the Township of the Archipelago, that the estimated expenditure increase of leaving the District would be offset by the cost savings of the amalgamation and that not enough detailed information was available from the District at the time the proposal was being developed. He also commented that many services could be contracted from the District thereby reducing the cost impact to Georgian Bay taxpayers and that he had concerns regarding the many assumptions made in Prof. Kitchen’s analysis. Councillor Kennedy advised that the Township will provide a response to the report and noted that the financial impact was just one element of the debate; the benefits of a strong coastal municipality must also be considered. Mayor Kennedy suggested that the Minister of Municipal Affairs and Housing be requested to convene a meeting with representatives from the Township of Georgian Bay, the Township of the Archipelago and the District Municipality of Muskoka to discuss the restructuring proposal and Prof. Kitchen’s analysis in order to confirm the figures and various elements of the studies. Prof. Kitchen requested an opportunity clarify a statement made which suggested that he stated there would be tax increases. He advised that he did not state that there would be tax increases only that there would be expenditure increases; how the councils fund those increases would be their decision.
Prof. Kitchen also referred to Mayor Kennedy’s remarks which suggested that District staff provided him with more information than was provided to the consultants for the Georgian Bay/ Archipelago proposal. Prof. Kitchen commented that the information was not volunteered; he had made very specific requests and was provided with the detailed data he had requested. Prof. Kitchen also stated that he objected to the suggestion that his report was flawed and based on incorrect assumptions; his report was not based on assumptions but on actual data. He emphasized the very real expenditures that will increase if the restructuring proposal goes forward, particularly in the area of roads, social services and water and sewer. Mr. John McNicoll advised that he was a resident of MacTier and thanked the Chair for arranging the meeting. He advised that he did not support the proposed Georgian Bay/Archipelago amalgamation. He noted the lack of municipal services that currently exist in Archipelago township and he commented on the benefits of staying with the District of Muskoka, particularly with the level of professional expertise that exists at the upper tier. Mr. McNicoll expressed concerns with respect to the increased expenditures associated with the proposal restructuring, in particular the debt that Georgian Bay township would assume, and he noted the savings that could be achieved in a single tier structure. Mr. Kevin McDonald, a resident of MacTier, inquired as to negotiating costs with the District of Parry Sound. Prof. Kitchen advised that the proposal is to amalgamate Georgian Bay with the Archipelago, so there may be some negotiating in terms of area rating of service, however there would not be any control over the DSSAB costs as those costs are set by the Province.
Mr. Don Batten, a resident of Honey Harbour, expressed disappointment that the community of interest rationale was not explored in the analysis as it had been in the phase one report of the Ad Hoc Muskoka Restructuring Committee, because he felt it was a valid issue. Mr. Batten commented that he had heard the District Chair say that while he was from Severn Bridge, he shopped in Gravenhurst. Chair Adams clarified that he had said he did most of his business in Orillia and suggested that others in his area did as well. Mr. Batten also noted he felt Prof. Kitchen’s analysis was pessimistic with respect to potential increases in policing. He also stated that three mayors voted against the single tier restructuring proposal initiated the previous year which he felt was not an overwhelming endorsement. Prof. Kitchen commented that he tried to point out the differences in DSSAB costs between what Georgian Bay pays in Muskoka vs. what it would pay if it were to separate. It was still unknown what the impact would be if there was a downturn in the economy. He also commented that potential changes in policing costs were an unknown.
Mr. Christopher Baines, resident of the Township of Georgian Bay, stated that the concept of community of interest was something he felt strongly about. In response to his inquiry regarding DSSAB, Chair Adams confirmed the assumption that the Township of Georgian Bay would become part of the Parry Sound DSSAB. Mr. Baines raised the issue of tax contributions and the “subsidies” provided in terms of cost of services. Prof. Kitchen stated there are uniform rates across the District; some larger urban areas are currently paying higher rates that they would pay if they were actually being charged for what it costs to provide those services to them.
Mr. John Birnbaum, Executive Director of the Georgian Bay Association, advised that it was his understanding that the report would be structured in such a way as to suggest that Georgian Bay could separate from the District of Muskoka, but that there would be certain conditions that would reflect equity to the taxpayers.
Chair Adams advised that Prof. Kitchen was requested to point out the impact on Muskoka; District Council must now reflect on the report and make a decision which may or may not include conditions. He noted that the matter would be considered at the February 19th District Council meeting. Mr. Birnbaum commented that the provincial regulation requiring that newly formed municipalities be contiguous may not be applicable if the Muskoka Act is reopened. Mr. Bob Light, resident of MacTier, expressed concern with respect to the cost of municipal services, particularly the MacTier water plant, if the restructuring proposal proceeds.
Mr. Rick Breckbill, resort owner on Gloucester Pool, raised the community of interest issue and commented that he related much more to Muskoka that to the Township of the Archipelago. He suggested that Mayor Kennedy provide a compelling reason for the proposed amalgamation.
Chair Adams related a personal anecdote to illustrate the feeling of community across Muskoka and, in particular, noted that his relatives living in MacTier want to stay in Muskoka.
Ms. Naomi Emmett, cottager on Gloucester Pool, stated that she felt affiliated with Muskoka and commented that a lot of time and energy was being wasted if it
is clear that the Province will not approve a restructuring proposal if it can be demonstrated that it will increase taxes for all concerned. Prof. Kitchen commented that it wasn’t known what the Province would approve, however he cited again the experience of the Township of Flamborough attempting to secede from Hamilton-Wentworth. Ms. Emmett suggested that feedback from the Province should be sought before any further action is taken. Chair Adams advised that the Province is waiting to hear from District Council with respect to the report and noted that he would expect to hear back from the Province by the end of March. In response to a question from Ms. Emmett regarding a further debate at the Township level, Mayor Kennedy commented that they would wait until the matter had been debated at District Council. Chair Adams commented that District Council’s decision would be posted on the website.
Mr. Darwin Baker, resident of MacTier, inquired as to how the taxpayers in Georgian Bay and the Archipelago townships would get a vote on the proposed amalgamation. Chair Adams advised Mr. Baker to make his views known to his local council members
4. Adjournment
Chair Adams thanked everyone for attending. He stated that those who wanted their views known could send comments to Ernie Eves, M.P.P. and the Minister of Municipal Affairs and Housing.
Wednesday, January 31, 2001 – 7:00 p.m.
MacTier Memorial Community Centre
Present:
District Chair Gord Adams
Professor Harry Kitchen
Bill Calvert, Chief Administrative Officer
John McRae, Commissioner of Corporate & Emergency Services
Jim Green, Commissioner of Planning & Economic Development
Ian Turnbull, Commissioner of Community Services
Brian McLauchlan, Director of Public Works
Noel Waters, Director of Roads & Traffic
1. Call to Order
Chair Adams called the meeting to order and introduced Professor Kitchen and District staff.
2. Presentation of Report
Professor Kitchen provided some background information with respect to the municipal restructuring exercises he has been involved with. He stated that he had been requested by the District of Muskoka to examine the implications of the Township of Georgian Bay leaving the District of Muskoka. Prof. Kitchen stated that he analyzed the facts available and presented them in his report with no biases. He noted that there were no cases in Ontario where a lower tier municipality has withdrawn from a region or district. He did note, however, that the Township of Flamborough had been given the option of seceding from Hamilton-Wentworth when that region was undergoing a restructuring, however it was determined that the costs would be too high for all concerned and the initiative was abandoned.
By way of an overhead presentation, Prof. Kitchen outlined the estimated changes in annual operating expenditures if the Township of Georgian Bay was to separate from the District of Muskoka. He compared his estimates of the expenditure changes per household, $26 higher in Muskoka and $102 higher in Georgian Bay,
against those provided in the Georgian Bay/Archipelago restructuring proposal shown as $21 higher for Muskoka and $114 lower in Georgian Bay. Prof. Kitchen commented on the rationale for restructuring in terms of cost savings and community of interest. He noted that restructuring generally serves to spread costs
of services over a larger area.
Professor Kitchen reviewed estimated changes in annual operating expenditures in the areas of General Government, Engineering & Public Works, Community
Services and Planning. He noted that neither insurance costs nor debt were taken into consideration. Prof. Kitchen commented on the use of uniform water rates
throughout the District, how some areas subsidize others and the potential for increased costs if Georgian Bay were to separate. He also outlined the changes
that would occur in terms of community services if Georgian Bay were to become part of the Parry Sound District Social Services Administration Board (DSSAB).
Professor Kitchen commented that he could not find any differences in planning costs between his analysis and the restructuring proposal.
Prof. Kitchen pointed out a typographical error on p. 5 of his report; the figure in column 2 that reads -$2,448,860 should instead read -$2,484,860. He commented that he did not explore the cost of allocating assets and liabilities, but did note that
negotiations in this regard in other restructured municipalities had been very difficult. Prof. Kitchen noted that with respect to transition funding, the Province will not provide funds if the restructuring proposal suggests that costs will go up.
3. Questions/Comments
Mayor Mike Kennedy read a prepared statement that he had presented at a recent District Council meeting outlining his thoughts on Prof. Kitchen’s analysis and noted that that Prof. Kitchen had provided a response to the statement which had been distributed to the public at the outset of the meeting. Mayor Kennedy felt that the study ignored the benefits of the proposed amalgamation of the Township of Georgian Bay with the Township of the Archipelago, that the estimated expenditure increase of leaving the District would be offset by the cost savings of the amalgamation and that not enough detailed information was available from the District at the time the proposal was being developed. He also commented that many services could be contracted from the District thereby reducing the cost impact to Georgian Bay taxpayers and that he had concerns regarding the many assumptions made in Prof. Kitchen’s analysis. Councillor Kennedy advised that the Township will provide a response to the report and noted that the financial impact was just one element of the debate; the benefits of a strong coastal municipality must also be considered. Mayor Kennedy suggested that the Minister of Municipal Affairs and Housing be requested to convene a meeting with representatives from the Township of Georgian Bay, the Township of the Archipelago and the District Municipality of Muskoka to discuss the restructuring proposal and Prof. Kitchen’s analysis in order to confirm the figures and various elements of the studies. Prof. Kitchen requested an opportunity clarify a statement made which suggested that he stated there would be tax increases. He advised that he did not state that there would be tax increases only that there would be expenditure increases; how the councils fund those increases would be their decision.
Prof. Kitchen also referred to Mayor Kennedy’s remarks which suggested that District staff provided him with more information than was provided to the consultants for the Georgian Bay/ Archipelago proposal. Prof. Kitchen commented that the information was not volunteered; he had made very specific requests and was provided with the detailed data he had requested. Prof. Kitchen also stated that he objected to the suggestion that his report was flawed and based on incorrect assumptions; his report was not based on assumptions but on actual data. He emphasized the very real expenditures that will increase if the restructuring proposal goes forward, particularly in the area of roads, social services and water and sewer. Mr. John McNicoll advised that he was a resident of MacTier and thanked the Chair for arranging the meeting. He advised that he did not support the proposed Georgian Bay/Archipelago amalgamation. He noted the lack of municipal services that currently exist in Archipelago township and he commented on the benefits of staying with the District of Muskoka, particularly with the level of professional expertise that exists at the upper tier. Mr. McNicoll expressed concerns with respect to the increased expenditures associated with the proposal restructuring, in particular the debt that Georgian Bay township would assume, and he noted the savings that could be achieved in a single tier structure. Mr. Kevin McDonald, a resident of MacTier, inquired as to negotiating costs with the District of Parry Sound. Prof. Kitchen advised that the proposal is to amalgamate Georgian Bay with the Archipelago, so there may be some negotiating in terms of area rating of service, however there would not be any control over the DSSAB costs as those costs are set by the Province.
Mr. Don Batten, a resident of Honey Harbour, expressed disappointment that the community of interest rationale was not explored in the analysis as it had been in the phase one report of the Ad Hoc Muskoka Restructuring Committee, because he felt it was a valid issue. Mr. Batten commented that he had heard the District Chair say that while he was from Severn Bridge, he shopped in Gravenhurst. Chair Adams clarified that he had said he did most of his business in Orillia and suggested that others in his area did as well. Mr. Batten also noted he felt Prof. Kitchen’s analysis was pessimistic with respect to potential increases in policing. He also stated that three mayors voted against the single tier restructuring proposal initiated the previous year which he felt was not an overwhelming endorsement. Prof. Kitchen commented that he tried to point out the differences in DSSAB costs between what Georgian Bay pays in Muskoka vs. what it would pay if it were to separate. It was still unknown what the impact would be if there was a downturn in the economy. He also commented that potential changes in policing costs were an unknown.
Mr. Christopher Baines, resident of the Township of Georgian Bay, stated that the concept of community of interest was something he felt strongly about. In response to his inquiry regarding DSSAB, Chair Adams confirmed the assumption that the Township of Georgian Bay would become part of the Parry Sound DSSAB. Mr. Baines raised the issue of tax contributions and the “subsidies” provided in terms of cost of services. Prof. Kitchen stated there are uniform rates across the District; some larger urban areas are currently paying higher rates that they would pay if they were actually being charged for what it costs to provide those services to them.
Mr. John Birnbaum, Executive Director of the Georgian Bay Association, advised that it was his understanding that the report would be structured in such a way as to suggest that Georgian Bay could separate from the District of Muskoka, but that there would be certain conditions that would reflect equity to the taxpayers.
Chair Adams advised that Prof. Kitchen was requested to point out the impact on Muskoka; District Council must now reflect on the report and make a decision which may or may not include conditions. He noted that the matter would be considered at the February 19th District Council meeting. Mr. Birnbaum commented that the provincial regulation requiring that newly formed municipalities be contiguous may not be applicable if the Muskoka Act is reopened. Mr. Bob Light, resident of MacTier, expressed concern with respect to the cost of municipal services, particularly the MacTier water plant, if the restructuring proposal proceeds.
Mr. Rick Breckbill, resort owner on Gloucester Pool, raised the community of interest issue and commented that he related much more to Muskoka that to the Township of the Archipelago. He suggested that Mayor Kennedy provide a compelling reason for the proposed amalgamation.
Chair Adams related a personal anecdote to illustrate the feeling of community across Muskoka and, in particular, noted that his relatives living in MacTier want to stay in Muskoka.
Ms. Naomi Emmett, cottager on Gloucester Pool, stated that she felt affiliated with Muskoka and commented that a lot of time and energy was being wasted if it
is clear that the Province will not approve a restructuring proposal if it can be demonstrated that it will increase taxes for all concerned. Prof. Kitchen commented that it wasn’t known what the Province would approve, however he cited again the experience of the Township of Flamborough attempting to secede from Hamilton-Wentworth. Ms. Emmett suggested that feedback from the Province should be sought before any further action is taken. Chair Adams advised that the Province is waiting to hear from District Council with respect to the report and noted that he would expect to hear back from the Province by the end of March. In response to a question from Ms. Emmett regarding a further debate at the Township level, Mayor Kennedy commented that they would wait until the matter had been debated at District Council. Chair Adams commented that District Council’s decision would be posted on the website.
Mr. Darwin Baker, resident of MacTier, inquired as to how the taxpayers in Georgian Bay and the Archipelago townships would get a vote on the proposed amalgamation. Chair Adams advised Mr. Baker to make his views known to his local council members
4. Adjournment
Chair Adams thanked everyone for attending. He stated that those who wanted their views known could send comments to Ernie Eves, M.P.P. and the Minister of Municipal Affairs and Housing.