Friday, January 30, 2009

New Tecumseth's Ugly Debt

Initially published in the Alliston Herald on January 30, 2009

The good, the bad, and the ugly? Not quite. This week it's all ugly.

Ugly No. 1: The Town of New Tecumseth has one monstrous whack of debt. For starters there is the $17.2 million presently on the books. The total does not include the additional $3.5 million that is already factored into the 2009 draft budget. For those who are counting, we're at $20.7 million.

Another $23.0 million of debt (drawn upon a $36.0 million line of credit) needs to be added to the total for the wastewater treatment expansion facility. The tally: $43.7 million.

Further, although no one at the town level seems to be talking about it, New Tecumseth has enormous obligations associated with the Georgian Bay water pipeline - a debt that presently sits in the neighbourhood of $31 million. Not a single payment (interest or principal) has been made to the province since the pipeline was constructed and massive interest continues to accumulate. A balloon payment will become due a few years from now. By that time, in the absence of some form of bailout, the pipeline debt will hover around $40 million or more. For now, let's keep it at $31 million. The tally: $74.7 million.

If the remaining $13 million is drawn on the wastewater line of credit (and there is little reason to believe it will not), the total will be $87.7 million!

What's particularly worrisome (beyond the staggering interest obligations) is that the town's borrowing capacity for the next 10 years (assuming the 2009 budget is approved) is a meagre $7.0 million. If Beeton councillor Richard Norcross gets his way (and he usually does) we can expect another $5 million or so of debt financing for the new Beeton arena. The projected total thus becomes $92.7 million.

New development in this community has largely ground to a halt in no small part due to the high development charges. Consequently, any suggestion that new development charges will "save us" are not based in reality.

This miserable debt position is in part due to a series of bad deals and a penchant by town council, both past and present, to use taxpayer funds for projects ($1 million or so for medical offices; several hundred thousand to construct a restaurant at the new arena; $600,000 to acquire the Banting Homestead etc.) that ought to have been left to the private sector.

The Ugly No. 2: Last week, in a decision made in camera, town staff agreed to take a "hit" in the form of four unpaid days off in 2009. This kind gesture will save New Tecumseth taxpayers approximately $150,000.

Based on my observation of senior staff as they left the meeting I can assure you the decision was not unanimous.

Imagine how annoying it must therefore have been for these individuals, a few minutes later, to see some councillors lead the charge to increase the town's commitment for the construction of the Mel Mitchell fieldhouse from $50,000 to $200,000.

This is especially the case in circumstances where the field house project has morphed from a plan to construct washroom facilities into a much more elaborate project complete with a wrap-around porch where residents can observe the fields while they consume cucumber sandwiches with no crust (as suggested by councillor Jamie Smith).

The Ugly No. 3: At the same in-camera meeting council gave staff direction to investigate the possibility that the town assume the operation of the town's libraries in place of the New Tecumseth Library Board - the independent entity that is actually responsible for the operation of the libraries in our community.

The action was taken without the knowledge or direction of the Library Board (of which I am a member) and represents an outrageous and extremely offensive blindside.

Quite frankly, there was no justification for this direction to have been given in secret and behind closed doors. What I find particularly disturbing is that the two members of town council who sit on the library board were present at the in-camera meeting and voiced no objection to the direction.

The board has operated the library for many, many years in a competent and efficient manner. There is no reason for it to be pushed aside in response to a bizarre and inexplicable power grab. In fact, it is with some bemusement and irony that I point out the library board has managed to operate for many years without incurring millions of dollars of debt.

Given the debt position of the town, do you really want to give council responsibility for the libraries!

Friday, January 16, 2009

The Good, The Bad, The Funny...Again

Initially published in the Alliston Herald on January 16, 2009

The Good: The past year or so has seen extensive changes to both the administration and emergency department at Stevenson Memorial Hospital. Last Saturday was the first occasion I've had need to attend Stevenson since these developments. The new ER design represents a dramatic improvement to the haphazard and scattered outlay of old. Further, the administrative personnel, nurses and medical staff that I encountered were, to a person, pleasant, professional and competent. Although I have been harshly critical and expressed concerns over the governance structure that has been implemented at Stevenson, it will nevertheless be a slightly easier pill to swallow if Saturday's experience represents the quality of care our community can consistently expect under the new regime.

The Bad: Whereas Centre Street in Alliston has received most of the attention of late as being a road in dire need of repair, my vote for the worst road in the Town of New Tecumseth goes to Downey Street. While there are plans for work to be performed in the near future on a handful of streets/roads including Centre Street, there are no such plans for Downey and it appears destined to develop its customary 40-plus new potholes this spring. I invite readers to send me their own nominations for New Tecumseth's worst road. Perhaps in the spring we can organize a "Celebration of New Tecumseth Pot Holes" and name some of the "best" after our favourite politicians.

The Funny: You might imagine my surprise when a Christmas card arrived at my home from our Member of Parliament together with an invitation to her annual New Year's Levee. The family of our member has, after all, made no secret of their disapproval of some earlier columns penned on this page. Closer inspection of the envelope revealed that the card wasn't addressed to me personally but rather to a corporation (of which I am an officer) that had donated funds to her campaign in the past. I do confess to some puzzlement with the characterization of the event. A "levee" has historically been associated with a reception held by royalty. One definition describes it as: "A reception held, as by royalty, upon arising from bed." Wikipedia.com includes the following description: "Today, Levées are the receptions (usually, but not necessarily, on New Year's Day) held by the Governor General, the Lieutenant-Governors of the Provinces, the military and others, to mark the start of another year and to provide an opportunity for the public to pay their respects." Interesting indeed.

The Curious: The wacky reality of the amalgamation of three separate towns into one with a ward system means that there is an inherent tendency on municipal politicians to "get things" for their own wards. It seems that in New Tecumseth the focus has often been one of "acquiring" or upgrading recreational facilities. Alliston has a new $10,000,000-plus recreational facility; Tottenham has upgrades and expansions planned for the Community Centre; Beeton has a new field house planned for Mel Mitchell Field and $100,000 earmarked to spend on a study for a new Beeton arena. Further, the town recently spent thousands of dollars on a culture and recreation study that identified a swimming pool as a priority.

At the same time New Tecumseth has a multitude of roads in a disgraceful state of repair; part of the Town (Tottenham) that is not connected to the water pipeline; and, an entirely inadequate sewage capacity.

Further, as a result of the town's decision to increase development charges to deal with its limited revenues and ever-increasing expenses, new development seems to have grinded to a halt. It all seems kind of odd. After all, no one will be able to get to our recreational facilities if they're sinking in potholes and sewage!