December 5, 2011
Municipality of North Perth
330 Wallace Ave. N.,
Listowel, ON †††N4W 1L3
Attention: Mrs. Mayor & Council
Dear Mrs. Mayor & Council:
Re: Perth Meadows
This letter is to formally identify my concern, protest and pending action to stop the further investment in the Perth Meadows Development.
It is clear by Section 106 that North Perth invested in a commercial enterprise in 2008 in the amount of $2.5M in order that the development could be started. This in terms of the Municipal Act is referred to as “bonusing”. The restriction of bonusing in the Municipal Act was to stop municipality’s from supporting businesses with tax dollars.
The fundamental reason for this legislation was to avoid a precedence whereby any business could come forward to any municipality in Ontario for preferential financial treatment (loans, grants and tax reductions) that would be ultimately supported by local, Provincial or Federal funds. This sets an unfair advantage for some businesses and exposes local governments to immense risk.
What is deeply concerning is that the recent resolution to invest another $5.5M is an ongoing breach of Section 106 of the Municipal Act and has pushed the debt of the municipality to unprecedented levels that will fall on the shoulders of the tax payers. It is apparent that this development is not financially viable as a standalone enterprise however, the Council of North Perth is now exposing the municipal corporation not only to a total debt of $8.0M for a condominium development but the operational costs that has caused this business to effectively fail.
What is also of concern are the conflicts of interest of the council members who are part of the board of directors of this corporation and their voting on this matter. I am as are others deeply concerned for the cost of the continuing failure of this business to be now supported by the taxpayers of North Perth. Not only are we making our taxpayers vulnerable to the debt and potential loss of investment, but we are exposing our finances to the unsustainable costs of the enterprise that will no doubt add to the municipality’s deficit.
In a recent discussion with MMAH representative Pearl McDougall the quotation in the Listowel Banner was out of context, in particular since the municipality is not buying property but instead investing in a private commercial enterprise (a condominium development).
With the deepest concern for the financial viability of our municipality, I hereby put the council of North Perth on notice that I will be challenging this recent investment and breach of the Municipal Act in order that our community is saved from financial ruin
Ron Scott
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4 comments:
It often appears in Municipal politics that an offence hasn't occurred until a watchful taxpayer points it out. That seems to be the way that the rules are set for some Municipalities which is unfortunate . Thank goodness for concerned citizens and taxpayers.
This is far too easy for campaign donors to get a payback with tax dollars. So sad to see. Follow the greed grease marks.
Government should stay out of business period. lt is so easy for them to cover up details with the red tape wrappings they put around every deal. They offer limited assistance and lead people in the wrong direction often while trying to find answers. Look at the disgraceful way the City of Cambridge runs water billing, seniors treatment, elections and over priced purchases of buildings. This shouldn't be the way Perth runs things and needs not to follow bad examples. Wake up.
They just keep taxing us more and more.
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