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Doherty’s Magic Money Fairy

the money fairyAt 3:55:20 in the video of Monday’s Collingwood Council meeting, Councillor Deb Doherty utters the self-congratulatory claim that she is “glad” the costs of the upcoming judicial inquiry to pursue the Block’s maniacal conspiracy theories are not coming out of “taxpayer funds on an annual basis.”

I can hear your head shaking. Where does she think money comes from? And since taxes are calculated yearly, is there any other sort of taxation aside from an “annual basis”? Well, read on…

This bit of financial wisdom comes from the same councillor who last year expressed bafflement over what dividends are and complained that the town wasn’t getting one from the utility to which it had caused excessive operating costs. This from a person charged with helping manage the town’s financial well-being.  Maybe she has other talents.

The costs of this inquiry were estimated at $1.4-$1.6 million in a staff report presented to council April 30. That estimate was vague because it didn’t include the costs of staff time to prepare reports, gather documents and appear at hearings, and possibly other expenses. A similar inquiry held in Mississauga was also estimated around $1.2 million ended up costing the municipality $6.2 million instead!

Doherty made her comment during a discussion on how to pay for the judicial inquiry that Deputy Mayor Saunderson demanded – without anyone (including him) bothering to figure out how to pay for it or even include it in the current year’s budget (Saunderson himself wasn’t at the meeting to answer questions, and my sources tell me he didn’t bother to inform anyone he wouldn’t be there!). So the costs get passed on to the next council (one that will, mercifully, be shorn of Blockheads).

Well, we all know finance has never been The Block’s strong suit. Or ethics, responsibility, openness, public consultation, fairness – but they are huge in conspiracy theories. Yuge, as Trump would say.

So how will the town pay for the inquiry? By taking the money from reserves. And how does money get into reserves in the first place? Yes, you’re going to tell me it gets funded from taxes which we, the taxpayer shell out every year. But clearly Councillor Doherty doesn’t understand that rather basic concept. I suggest she likely believes a Magic Money Fairy flies by at night and with a touch of her wand refills the coffers The Block have depleted.

As soon as she had uttered these words, Councillor Edwards corrected her, noting that “any money we spend comes from the taxpayers’ pocket.” *

True, but that apparently escaped Deb, who retorted that it wasn’t coming from taxpayers’ funds “this year.” So it seems no tax revenue went into reserves in 2018, at least in her mind. Need I tell you how utterly incorrect she is? Or that The Block initiated a fixed, extra 0.75% added to annual taxes to fund reserves? For which she voted? Which has been in the annual budget three times? For which she voted each time ? Okay, stop laughing.

It seems her Magic Money Fairy will simply fill up those reserves regularly so The Block can continue their spending-like-a-drunken-sailor-on-shore-leave-in-a-brothel tactic of financial management. While giving themselves a pay hike every year.

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Bullshit and hypocrisy again

You have to hand it to our Deputy Mayor: for all his many, many faults, he does do two things remarkably well: hypocrisy and bullshit. Neither does he do in halfway measures. No, when he dons their mantle, he wears the emperor’s new clothes with pride, head to toe.

At January 15’s council meeting, Brian took both bullshit and hypocrisy to stratospherically new levels. Astounding levels seldom seen outside today’s White House; truly breathtaking to see it here in our little town. More proof the kakistocracy is alive and well in  Collingwood.

At 2:23:04 Brian made a notice of motion for the town to give the hospital up to $150,000 to help cover their bills. I know: the arrogance of such an offer staggers the mind. After all, it was our very own Blockheads and the town administration who helped make the hospitals costs larger than anticipated. Had they not put up such resistance to the redevelopment, had they not erected so many roadblocks, had their resistance not forced the hospital to hire a consultant planner and lawyers to defend its plan, those bills would not have been so high.

I know, it made me throw up a little into my mouth when I watched the recent council video. Have a bucket beside you when you watch. The hypocrisy is jaw-dropping in its arrogance. Not that anyone will vote against it – but the slime trail this motion leaves is thick and gooey.

The result of the town’s fight against the redevelopment meant the hospital missed the funding window and stalled the creation of new, better health care services in this area by at least three years, if not a decade or more. If we ever get the chance, should a new government get elected. Patient care? Community health and well being? The Block never gave a damn about them.

My sources tell me the town’s refusal to support our hospital’s redevelopment plan cost the hospital more than $100,000 extra in legal and consulting fees. The town also hired a sole-sourced (of course), high-priced lawyer and a sole-sourced (of course), expensive consultant to defend their actions. This, as I understand, cost taxpayers more than $40,000. So far the cost as a direct result of the town’s bullying has cost local residents at least $150,000 – all unnecessarily. And now Brian wants us to double that, simply to pay for the Block’s bad behaviour twice.

Isn’t it great how easy and loose Brian plays with our money?  And he doesn’t even bother to stay within the ongoing budget process. It’s almost like he doesn’t give a damn about how he spends it. After all, these snollygosters have already raised our taxes three times this term and plan to raise it a fourth time. It doesn’t hurt them because every time they do so, they give themselves a pay raise to compensate. So why not try to bribe the hospital to forget their actions?

This is the same guy who only a few months ago demanded the Ministry of Health reveal what it reported to the hospital because he clearly didn’t believe them when the hospital posted the Ministry’s comments on its website. The same guy who publicly pretended there was no problem between the town and the hospital, even though he was the cause of much of the adversarial relationship. Ah, the hypocrisy runs deep in this man. Kind of like the Force in Star Wars, except on the dark side.

And yet neither he nor any of his Blockheads have told us why they opposed the move that all of our neighbouring municipalities, and all of the hospital medical staff and more than 95% of the local medical community have supported. Does it have something to do with the developer who has bought up all the property around the current hospital, and has a vested interest in the hospital staying in place? Or are the Blockheads just too inert to do anything but raise their hands and vote as told?

Here’s a suggestion: take the money from the pay of those who argued and voted and whined about the hospital redevelopment. That would pay for Brian’s largesse from their own pockets, not ours. Let them take responsibility just once this term. Make those who caused the problem pay for the solution. But of course, you well know, The Block always blame someone else: they never take responsibility. So they’ll spend OUR money to try to fix their own mess.

Don’t expect this bribe will make anyone forget Brian and his group’s actions against the hospital. Certainly no one at the hospital, on its board, or in the medical community is fooled; no one among the group of activist doctors who have committed to turfing out Brian and his bunch next election. The Block’s war against our hospital will be a central, critical issue this coming election.
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Brian suddenly realizes there’s a budget process.

PerplexedOver on BBFFWS (Brian’s BFF’s Web Site) is a sort-of-a story about Collingwood’s 2018 budget. It’s really just some comments about a document this council won’t even get a peek at until sometime in late January, and won’t get through the approval stage until late spring or even early summer. Even though all of our municipal neighbours, the county and indeed most of Ontario, have already approved their 2018 budgets, Collingwood continues to slog along, months behind the process curve. And nary a word of complaint from The Block. Well, to be fair, nary a word they even noticed was uttered.

But apparently the news that there is actually a process involved in budget approval surprised The Block, who had in the past three years merely raised their hands to hike taxes at staff’s request (while, of course, granting themselves a pay hike at the same time). I suspect the idea that there may be something deeper, something more complex, something that involved reading, bemused them. Maybe even shocked them.

Who knew budgets could be so difficult? Well, everyone except our Blockheads.

This week the treasurer told council that there is already a surplus of $1.75 million. That over-taxation represents about a 6% tax increase. In other words, had anyone on The Block been paying attention, they could have held taxes at zero percent these past three years, or even (gasp) lowered them. But paying attention isn’t their forte. Like actually reading the full budget isn’t a practice they have adopted. Or ever will.

Of course, a lot of that surplus will be used in paying off the excessive costs the town shouldered when it broke the shared services agreement, created a new IT department, bought tons of new hardware, hired three new staff persons and then still had to contract out some of the services we got from Collus IT staff for a third the cost. Oh and then there’s the pesky costs of the sole-sourced layers and consultants the administration hired to justify selling our publicly-owned electrical utility to a private for-profit corporation (without any public discussion, or course). Plus the costs of paying the former interim CAO a consultant’s fee after he “retired.” And hiring new staff in the treasury department (yet which department still can’t produce the budget on time). Plus there are hundreds of thousands more in legal bills to come to go through the legal application process to sell our utility. And then there’s the promised $700,000-plus savings from taking the water utility away from its partnership with the electrical utility – which instead seems to have become an expense to taxpayers, not a savings.

So will we really have a surplus for 2018? Not likely. If that were true why would the treasurer have asked council to approve an automatic 1.7% cost-of-living increase on our taxes this fall, months before the budget was even discussed? And that, by the way, was ON TOP of the automatic annual 0.75% levy The Block approved previously.

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Alectra says no: The Block screwed us again

ShameThe headline on the media release reads, “Alectra selling its shares in Collus PowerStream to Collingwood.” What it should add is that Collingwood residents and taxpayers were betrayed by members of their own council and administration. After a three-year campaign to screw us, The Block have won a major victory in abhorrent behaviour. They are privatizing our electrical utility and next year will do the same to our water/wastewater utility, to the same corporation.

Our publicly-owned utility will be sold to EPCOR, an out-of-province, for-profit corporation that pays a dividend to the city of Edmonton only, and that will raise our electricity rates as soon as they are allowed. Our utility will be privatized within a year, with no local control, no local representation, no local input. And it’s all been done to us behind closed doors.

What will Collingwood get from the sale? Basically nothing, once all the legal fees, consultant fees, taxes and kickbacks are paid. We will have lost everything just to satisfy some personal vendettas.

In fact, with the changes made to staff, to departments and the termination of the shared services agreement, and the skyrocketing legal and consulting costs approved by The Block and this administration, operating costs are already escalating. Your taxes will be raised significantly to pay for their vile acts.

It is a devastating blow to the hardworking staff in Collus-PowerStream. It will be devastating and extremely costly to residents once the deal is finalized. This is the lowest moment in our town’s history. It goes way beyond merely being unethical and immoral: it has the stench of corruption about it.

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The secret costs of the EPCOR deal

Scheming BlockheadsWhether or not The Block sell our share of our public electrical utility to the for-profit, Edmonton-based EPCOR, it will still cost taxpayers millions. And I don’t mean just the rising costs of sole-sourced lawyers and buddy consultants the administration has hired (well over $1 million already, and the bills keep coming in). I’m talking about the hidden costs The Block won’t divulge because they don’t want taxpayers to realize how really bad a deal they’ve made with this devil.

And it all happens behind closed doors, Monday, Oct. 23, 2017. No public input allowed on the sale of our own utility. The Block intend to privatize our utility without informing the public of the costs or the consequences.

My industry sources tell me there are many costs associated with the sale that will be built into the selling price, but paid back to the buyer after the sale. In other words: it’s a shell game. We taxpayers will pay the buyer’s costs and their fees, but these will be hidden in the contract, which will be kept secret, so you won’t know what they really are. Sneaky and underhanded – The Block’s way.

Let’s start with the transfer tax: the Ministry of Finance applies a 22% tax to sales made to out-of-province buyers. So if the sale of the town’s share is $8 million as it was in 2012, the MoF will demand a $1.76 million transfer fee. But the buyer will probably offer more, an inflated value of, say, $10 or even $12 million, and the town will repay the buyer the tax from the total. So the town doesn’t actually get the extra cash: that pays the buyer’s taxes. Did I mention the shell game?

Then there’s the “break fee” or termination fee we will pay even if the deal falls through. This happened to Innisfil when its council decided not to sell InnPower to EPCOR (as I recall from media stories, the amount was $1.2 million, but I may be incorrect). Wikipedia tells us this is:

… a penalty set in takeover agreements, to be paid if the target backs out of a deal (usually because it has decided instead to accept a more attractive offer). The breakup fee is ostensibly to compensate the original acquirer for the cost of the time and resources expended in negotiating the original agreement. A breakup fee also serves to inhibit competing bids, since such bids would have to cover the cost of the breakup fee as well.

Which my industry sources tell me has already been agreed upon – in secret of course – by The Block and the town administration. We’ll pay it even if we decide not to sell. How much will it cost us? It really depends on what sort of slimy deal The Block cut, but again my industry sources suggest it will be between 8% and 13% of the offer.

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