| Mar 29, 2012


Treasurer paints stark picture of infrastructure deficit

In a presentation to Frontenac County Council last week, Treasurer Marion Vanbruinessen outlined some of the findings that are contained in a report that was released in early March by the Eastern Ontario Warden’s Caucus (EOWC)

Entitled “Facing Our Fiscal Challenges” the report provides a factual background for the insight that was the impetus for the establishment of the EOWC 10 years ago – namely that Eastern Ontario municipalities have been saddled with infrastructure costs for roads, bridges, water treatment plants, etc. that are well beyond the capacity of the local tax base to pay for.

The executive summary of the report sums up the accumulated data about local finances, repairs that are needed, income and employment levels, the ageing population, and more.

It comes to the following conclusion:

“Together, these data paint a picture of a region which – without a creative response – will have increasing difficulty sustaining local government services in the years ahead. In virtually all cases, these financial stresses did not develop overnight, nor will they be resolved overnight. However, there is an increasingly urgent need for all levels of government to begin the process of developing policies and financial strategies which recognize the limitations of the assessment base and its ratepayers, enable local governments to better manage costs of service delivery, and create more prosperous local economies.”

Vanbruinessen teased out the data for Frontenac County from the report, and said that the situation in Frontenac is, if anything, worse than it is in Eastern Ontario as a whole.

“Frontenac County has the lowest level of commercial assessment among Eastern Ontario counties,” Vanbruinessen said.

“We have had little to no population growth, low rates of residential growth, and our population is ageing faster than the provincial average. Our municipal debt ratio is up by 107% since 2001 as well, and we are more dependent on taxes and user fees than other municipalities in the region,” she said.

Vanbruinessen also said that in terms of resurfacing needs, it would cost $104 million to bring the county up to standard; $500 million if needed reconstruction projects are included.

“The average age of our bridges and culverts is 38 years. Frontenac County should be spending $25 million per year to address those deficits,” she concluded.

In spite of the bleak presentation by the treasurer, South Frontenac Mayor Gary Davison seemed unmoved.

“This is not a startling revelation,” he said, "We know these assets are very tough to manage. This is only really reaffirming what we already know.”

“It does show that the rural municipalities are facing more challenges than urban ones,” said Warden Janet Gutowski in response.

Frontenac County budget sits at 1% increase, set to be finalized on April 4

As Frontenac County Council teetered towards completing its 2012 budget at the tail end of their monthly meeting, plans to set aside $150,000 for the 150th anniversary celebration that is coming up in three years sparked an unexpectedly heated response from Frontenac Islands representative David Jones.

“$150,000 on a party? My constituents will see red over this. May I speak frankly here? I think this is nonsense,” he said.

South Frontenac Mayor Gary Davison, who sits on the 150th anniversary committee, said that the committee is only asking that $150,000 be moved from the county’s $4 million working capital reserve fund to a new 150th anniversary reserve fund as a placeholder. He said that before any of that money is spent council would be consulted.

“I would refer to Councilor Jones’ reference to a party,” Davison added, “I think it is a celebration of where we have come from and what has been accomplished over 150 years. I see a benefit in showing off where the Frontenacs are.”

Jones was unmoved.

“It is a party geared at the mainland. It will take place on the mainland. It will be a non-event for the Islands,” Jones said.

Jones, who represents Howe Island to Frontenac Islands Township, then revealed at least a partial source of his opposition to putting money aside for the 150th anniversary bash. Last year, a group from Howe Island came to the county looking for $1,000 to support an event that they were organizing on the island.

“The county knocked us back to $250,” he said.

Warden Janet Gutowski, who also sits on the 150th anniversary committee, said, “We should all be proud of Frontenac County, and the anniversary is an opportunity for that sort of recognition. The committee has not yet fully developed the program for the events, and has simply looked at other similar events and the costing for staging them. I would suggest it would be good for the committee to have some seed money. There is no consensus on the $150,000. Can I suggest we make a decision to lower that to $50,000?”

Council member John Purdon said there is no reason for council to pre-approve spending and the money should stay in the working capital reserve fund until the committee has a fixed use for it.

“I agree with Councilor Purdon,” said Frontenac Islands Mayor Dennis Doyle.

With no consensus around the table, Warden Gutowski said the anniversary reserve would be pulled from the 2012 county budget.

As to the overall budget, Gutowski asked if council had any more to add before approving the document. Council has looked at the 2012 budget during its last three monthly meetings and at a special budget meeting earlier in March.

While there have been impacts on county activities as the result of those budget sessions, particularly in regards to a number of proposed sustainability-related projects that have been jettisoned, the net impact of the budget on county ratepayers has not been altered. It currently stands at a 1% increase.

Frontenac Islands Mayor Dennis Doyle said that he is not ready to close the book on the budget as of yet.

“I think we need to have another meeting to look at some of the items that were flagged early on that we never settled,” he said.

“I agree with Mayor Doyle,” said David Jones. “I have not seen the bottom line from all these discussions. I think we need another meeting.”

Council will meet on April 4, at 9:00, and it is expected the budget will be finalized at that time.

 

 

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