02/21/14

Collingwood’s municipal debt and 2014 budget


Aging infrastructureTuesday, Council got a combined debt-and-budget presentation that set the stage for the upcoming, fuller 2014 budget deliberations starting next week. CAO John Brown gave us a recap of a report (produced by BMA Management Consulting) about the town’s debt situation and financial wellbeing. It was a mix of good news/bad news.

The good is that it’s not as bad as it seems, certainly not as bad as some other municipalities, but mostly in the middle of the peer group selected for the report. The bad is that it’s not as good as we’d like it to be. But barring a big tax increase to reduce the debt and funnel more into reserves, I don’t see how it could be a lot better.

His report also included a comparison of Collingwood’s financial situation to six other municipalities:

I have to wonder why several of these were chosen as comparators by the consultants. The majority are not at all like Collingwood:

  • Wilmot Township, according to its own website, is “…approximately 20,000 persons living in small towns, settlements, and on farms.”
  • Springwater Township “…consists of both urban and rural communities, with a population of over 18,000 people. There are nine settlement areas, with Midhurst and Elmvale being the largest with a population of 3100 and 1700 respectfully. Other settlement areas include Snow Valley, Centre Vespra, Minesing, Anten Mills, Phelpston, Orr Lake and Hillsdale.”
  • Prince Edward County is similarly not one urban centre, but a collection of small, rural communities, the largest of which is under 5,500 population.
  • Innisfil is similar: small communities, some bedroom residential development close to Barrie, but mostly rural. Cookstown, one of the largest centres, has a population of about 2,000.

Only Orillia and Owen Sound are similar, small urban centres. Why would we not compare ourselves to Midland or Wasaga Beach? Brockville? Uxbridge? Huntsville? Orangeville? Surely these small urban centres would provide more of the apples-to-apples comparisons.

I’d also like to have seen such data as how  many employees are on the municipal payrolls in each; if they have their own or use OPP police service (and how much their police and fire budgets were – our services for 2014 will consume 22%, or $6.1 million, for policing, and 16%, or $4.4 million, for fire: more than a third of our budget in the combined costs).

I’d like to know their total budget, including operations, capital, how many buses they run, and so on. What are they spending their money on and why? What reserves do they have, what assets? Municipal finance isn’t so simple it can be reduced to a few lines.

Rural communities have very different needs, infrastructure demands, growth issues, etc. that make it difficult to adequately compare them to Collingwood.

We are also a combined retirement and tourist destination centre, which creates different sorts of challenges for services and infrastructure. Our percentage of people 65 and older is about 23% – much higher than the provincial average of 14.6%, and our percentage of people under the age of 55 is lower than the provincial average. That has implications for housing, employers, services, and commercial and industrial growth.

On page 8 of the report, it notes that the average percentage of farmland by assessment value in our comparators was 5.2%, while the amount is only 0.1% in Collingwood. But if you look at the maps, the actual, physical amount of farmland in those four “peers” significantly dwarfs the whole area of the Town of Collingwood. Farmland is the lowest on the assessment ladder, so having less is good for potential tax revenue.

We also have a higher percentage of commercial and industrial assessment, which is equally good for tax revenue.

What we never learned from the report was how much money had any of them invested in major infrastructure projects or municipal facilities over the past decade or more. Collingwood has had an ongoing infrastructure upgrade and replacement program, as reflected by the projects paid for by debentures. Plus we have a fairly modern museum, a new municipal building (library and planning services), a new fire station, upgraded police station, new parks, new recreational facilities, new trails, new works building, an airport, a harbour and a comprehensive municipal transit system. Not many municipalities can boast all of that.

Our CAO explained that debt wasn’t all bad – debt means you are building, upgrading and maintaining infrastructure, erecting new facilities. We maintain our infrastructure constantly else face higher costs when it fails. Debt isn’t operational: it’s used for capital projects.

But, the CAO cautioned, it’s important to manage that debt wisely. Which this council has been doing. And, he said, we can’t continue the status quo; we don’t want to push our debt capacity to its limit.

First, of course, we have to manage our spending. The initial overview of the budget has a projected 2.1% increase (about $67 per average household). However, in light of the CAO’s sobering presentation, I would not be surprised if department heads were told to come back with lower budgets, even in the negative area. I will certainly argue for a lower amount in many areas.

Personally, I’d rather see an overall increase in taxes no more than 1.2%, but even better would be a small reduction, say -1% or even -2%.

Of course, it may mean a reduction of non-essential service in some areas. You cannot continue to provide certain levels of service without paying for them – and costs always increase. Utility costs, inflation, fuel costs, food, wages, benefit costs, materials – they all go up. So to maintain even a zero-increase-based budget, you need to cut something or someone. Essential services won’t be affected.

Therein lies the rub. Quality of life is measured by some of those services. Taxpayers pay for a good life – and we do have a good life here in Collingwood. So what, if anything, are they willing to forego in order to avoid any increase? Or would they rather pay a little more to retain these services?

What can council or staff find in the budget that is non-essential and can be removed or reduced without affecting that perceived quality of life?  We need to find more opportunities for shared and contracted services.

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02/17/14

Should councillors abstain from voting?


Abstain from votingIn an earlier post, I wrote that Collingwood’s Integrity Commissioner, Robert Swayze, proposed two changes to the town’s Procedural Bylaw: amending section 13.7 and deleting section 13.8. Last post I dealt with the former; here I will explain my concerns about the latter.

Section 13.8 currently reads:

13.8 No vote – deemed negative – exception
Notwithstanding the provisions of Section 13.7 of this By-law, every Member who is not disqualified from voting by reason of a declared pecuniary interest shall be deemed to be voting against the motion if he/she declines or abstains from voting.

In other words, no member of council, board or committee can abstain from voting when at the table: everyone present has to vote or have the abstention counted as a negative vote.

This is partially derived from Section 246 of the Municipal Act, which reads

Recorded vote
246. (1) If a member present at a meeting at the time of a vote requests immediately before or after the taking of the vote that the vote be recorded, each member present, except a member who is disqualified from voting by any Act, shall announce his or her vote openly and the clerk shall record each vote. 2001, c. 25, s. 246 (1).
Failure to vote
(2) A failure to vote under subsection (1) by a member who is present at the meeting at the time of the vote and who is qualified to vote shall be deemed to be a negative vote. 2001, c. 25, s. 246 (2).

So under the MA, you need to call a recorded vote to have an abstention deemed negative. That can get tedious. Other provinces don’t have this requirement. Saskatchewan’s guide for municipal councillors notes:

All Members Must Vote
Legislation requires every member of council including the mayor or reeve, to vote on every question. Members must not abstain from voting unless they have a pecuniary interest. If a member abstains from voting for any other reason legislation deems his or her vote as opposed to the motion. Minutes are required to record all abstentions from voting.

There’s a bit of confusion about rules of order and what rules to follow. Some people think our municipal meetings  - including board and committee – are governed by either Robert’s or Bourinot’s Rules of Order. That’s incorrect: we are governed by the Municipal Act and our Procedural Bylaw. Council and all boards, committees and task forces created by the municipality are bound by the procedural bylaw.

Mr. Swayze wrote in his report to council:

In my opinion, all members of Council should be encouraged to declare a conflict, whether pecuniary or not, if the member feels that he or she cannot be impartial in voting on a matter. If for example, a member sits on the board of directors of a charity and awarding grants to the charity is before Council, the Councillor should declare a conflict, refrain from voting and such a declaration should not be deemed to be a vote against the charity. I have recommended in Appendix “D” that personal conflicts be added to section 13.7 and that 13.8 be deleted from the Procedural By-law.

Like in my previous post, my concern is in the implementation, not the intent.

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02/16/14

Legal Versus “Personal” Conflicts of Interest


Conflict of interest?In May, 2013, I wrote my thoughts about Ontario’s Municipal Conflict of Interest Act and the effect it had on the governance and procedural behaviour of municipal councillors. Back then, I wrote,

The Act allows no grey areas: there are no “perceived” conflicts in law, only clearly defined legal ones. This is obviously intended by the stringent wording that lays out what construes a conflict of interest.

This clarity absolves everyone of trying to second guess the intention of the Act, or trying to interpret degrees of conflict.

For the MCOI Act, only pecuniary – i.e. financial – conflicts matter: only they have to be declared; only they affect procedure and governance. And only the person and his or her direct family – parents and/or children – are involved. Siblings or other relatives, friends and coworkers are not considered to present a conflict:

Indirect pecuniary interest
2. For the purposes of this Act, a member has an indirect pecuniary interest in any matter in which the council or local board, as the case may be, is concerned, if,
(a) the member or his or her nominee,
(i) is a shareholder in, or a director or senior officer of, a corporation that does not offer its securities to the public,
(ii) has a controlling interest in or is a director or senior officer of, a corporation that offers its securities to the public, or
(iii) is a member of a body,
that has a pecuniary interest in the matter; or
(b) the member is a partner of a person or is in the employment of a person or body that has a pecuniary interest in the matter. R.S.O. 1990, c. M.50, s. 2.
Interest of certain persons deemed that of member
3. For the purposes of this Act, the pecuniary interest, direct or indirect, of a parent or the spouse or any child of the member shall, if known to the member, be deemed to be also the pecuniary interest of the member. R.S.O. 1990, c. M.50, s. 3; 1999, c. 6, s. 41 (2); 2005, c. 5, s. 45 (3).

Last week at our Feb. 10 council meeting, in his report to council, Collingwood’s Integrity Commissioner, Robert Swayze, proposed changes to two sections of the town’s Procedural Bylaw. The proposed change to section 13.7 would add a clause for “personal conflict” to the bylaw, and I address that below. I’ll deal with the changes to section 13.8 in a subsequent post.

In his report, Mr. Swayze said,

In my opinion, all members of Council should be encouraged to declare a conflict, whether pecuniary or not, if the member feels that he or she cannot be impartial in voting on a matter. If for example, a member sits on the board of directors of a charity and awarding grants to the charity is before Council, the Councillor should declare a conflict, refrain from voting and such a declaration should not be deemed to be a vote against the charity. I have recommended in Appendix “D” that personal conflicts be added to section 13.7 and that 13.8 be deleted from the Procedural By-law.

In his oral presentation, he said that other municipalities had included similar “personal conflict” conditions in their own governance regulations. I did some research into those regulations this past week.

Mississauga has the term in its procedural bylaw, I found, but it lacks a firm definition of the term, leaving it open to individual interpretation. The other references I’ve found are in codes of conduct or policy statements.

I’m troubled by the potential pitfalls of implementation as presented, rather than the intent, and argue below that the appropriate place for such terms is in the town’s Code of Conduct.

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01/29/14

Running for re-election in 2014


Earlier this month, I filed my nomination papers for municipal council. I am running for a fourth term as Collingwood councillor. I will post a new election website with updated information and campaign content later this winter.

I would appreciate your support, your trust and your vote. I believe I have earned them during my time on council, and will continue to do my best to serve the residents of Collingwood, and meet the needs of our growing community, when re-elected.

Until the new website is available, I want to let any eligible Collingwood voters who wish to contact me about issues, events and activities to feel free to do so. You can contact me by email. If you want to talk in person, please send me your phone number and a good time to call or to arrange a meeting.

I have a Facebook page where I will also post updates and related municipal content, as I always have done. I will launch a separate Twitter account for political campaigning this winter. Should you wish access to my personal Twitter feed (@iwchadwick – not used for political campaign content), please post a follower request on Twitter.

I stand on my experience, reputation, my integrity and the very positive results this council has accomplished this term. This has been the most productive, engaged, open and dedicated council I have served on, and reported on while I was reporter in the local media. I am proud to have been able to serve the town on this council; proud to have contributed to those accomplishments.

This term I have also been fortunate to share my political and media experiences with other politicians through articles and books published by Municipal World (three books and numerous magazine articles published, with a fourth book and new article due in 2014). I am passionate about municipal politics, about good governance, about public engagement, and I hope my writing expresses that.

I am also passionate about Collingwood. We live in the best community in Ontario: we have exceptional natural beauty; a stunning heritage downtown; low crime; lovely, walkable streetscapes; we have a solid workforce; many employment opportunities; we are centrally located in Ontario’s all-season playground and we have a good municipal staff at town hall to help council implement its strategic goals.

I love this town, and have been actively involved in it ever since we moved here, almost 25 years ago. I have been engaged as a volunteer on many boards and committees, and participated in service club activity. I believe in giving back to our community to help keep it the best place to live. Being on council has helped me give back in the best way possible.

If you would like to help my campaign or contribute, please contact me.

01/14/14

Brands, Buzz & Going Viral


Municipal WorldMy third book for Municipal World, Brands, Buzz & Going Viral, has just been published as part of the Municipal Information Series. I received my author’s copies yesterday.

I am very proud of this book; it took a lot of work to research and write. I enjoyed writing it. I hope my municipal readers find it both informative and interesting.

I am also delighted to be able to share my knowledge and experience with others in the municipal governance realm across Canada. It’s a humbling experience to be among the respected authors and experts in MW’s stable – authors whose books I have bought and read ever since I was first elected, a decade ago.

It is nice to be able to add a voice from Collingwood to their ranks, so show the rest of Canada’s municipal politicians and staff that we’re not just a pretty place to live; that we can be leaders in the areas of governance, that we can be be forerunners for ideas and knowledge.

Brands, Buzz & Going Viral is subtitled “A sourcebook of modern marketing strategies, tips and practices to promote your municipality.” Unlike my previous two books, it includes considerable material culled from printed and online sources: quotes with links and references back to them, and a healthy bibliography at the back.

BB&GV covers a wide array of related topics. While working on the book, I purchased and read dozens of books on marketing, advertising, public relations, branding, destination marketing, storytelling, communication and social media. I also went online and read thousands of articles and posts on the sites of experts, practitioners, and professional organizations. I listened to podcasts, watched slide shows and video lectures. I subscribed to email newsletters about PR and marketing.

Along the way, I learned about such topics as gamification, advocacy, cohorts and influencers, content marketing, infographics, newsjacking, viral marketing, reputation management, corporate social responsibility, crisis management, integrated marketing, rebranding, market research and persuasion. Some of which I had experience in, but I renewed my own knowledge as I researched. I hope I am able to apply my new knowledge to help formulate ideas and strategies for our town’s future marketing and economic development strategies.

The folder of PDFs printed from websites I read as resource material for the book is 2GB in size, with more than 1,100 files. (Contact me if you are interested in this source material.)

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01/9/14

To err is human. And bureaucratic.


Roosevelt quoteErrare humanum est, perseverare diabolicum, et tertium non datur. To err is human; to persevere in error is diabolical; there is no third option.

Bit of a tough love phrase, that one. Most of us know this as the later paraphrase of Alexander Pope: to err is humane, to forgive divine. Yes, he wrote “humane” because that’s how they wrote “human” in the early 18th century. And he was making a statement about critics, not about religion. But you get the drift.*

Pope’s phrase is a staple in politics. To err is human, and governments are composed of people. In his speech to the Democratic National Convention, in 1936, US President Franklin D. Roosevelt, said those words in the image above:

Governments can err, presidents do make mistakes, but the immortal Dante tells us that Divine justice weighs the sins of the cold-blooded and the sins of the warm-hearted on different scales. Better the occasional faults of a government that lives in a spirit of charity than the consistent omissions of a government frozen in the ice of its own indifference.

That’s worth repeating: Better the occasional faults of a government that lives in a spirit of charity than the consistent omissions of a government frozen in the ice of its own indifference.

Clearly others agreed, because Roosevelt was re-elected by a landslide that year. What impresses me is Roosevelt’s insistence that it is better to have a government that sometimes errs, yet cares for its constituents, than a government that doesn’t make the effort because it fears those mistakes. Or makes its decisions based on frozen ideology, rather than situational ethics, rather than looking for the greater good outside the myopic view.

Of course, we all err; we all have the benefit of hindsight that tells us what we might have done better, what we might have improved, which fork in the road would have been the better – not just the shortest or fastest – route. As Billy Wilder quipped, hindsight is always 20-20. We see the past better than the future.

In response to those armchair quarterbacks who were quick to point out the better way he might have followed, Roosevelt might have paraphrased John 8: “Let any one of you who has never made a mistake be the first to throw a stone at the decision makers.”
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