KAGAWONG—Citing irreconcilable differences between himself and the Township of Billings leadership, relating to accountability, transparency and financial integrity and feeling this has led to his no longer being able to effectively serve as a councillor for the township, Billings councillor Jim Cahill has resigned effective immediately. However, the accusations Mr. Cahill made in an email he sent to council members and the township CAO has led to the township forwarding the matter to the township integrity commissioner.
“To suggest that council is hiding something is disrespectful and patently untrue,” stated Billings Mayor Bryan Barker in a statement. “I resent the implication that the township is operating in the manner that Mr. Cahill is suggesting. At the council meeting on December 19, 2023, the township received the audited financial statements from Freelandt Caldwell Reilly, LLP Chartered Professional Accountants that in itself confirms that the municipality is operating with financial integrity.”
“The Water System Financial Plan 2021-2027 that Mr. Cahill refers to was included in the 2022 council orientation package provided to Councillor Cahill and all members of council,” continued Mayor Barker. “To state otherwise is ludicrous and misleading. To confirm, staff was directed at the December 12, 2023 council meeting to bring forward a Municipal Owned Water System Policy with respect to the operations and financials of the municipal water system in the second quarter of 2024 including engagement with the water users and the financials regarding the water bank account. Once the numbers are reconciled, there will be full disclosure to council and the public.”
“Mr. Cahill’s actions of reaching out to the public and media in this fashion shows his disregard for the Township of Billings policies and by-laws and are in contravention of his Oath of Office and Council Code of Conduct,” continued Mayor Barker. ‘This matter has been forwarded to the Townships Integrity Commissioner for further review.”
“I resigned last week (December 14),” Mr. Cahill told the Expositor. “I spoke to Mayor Bryan Barker on the phone and then I sent my resignation email to council members and the township’s CAO.”
“It is (because of) my irreconcilable differences with township leadership that I am resigning and I feel I am no longer effective in my job as councillor,” said Mr. Cahill. He explained in his resignation email to Mayor Barker, “Due to irreconcilable differences between me and the township of Billings leadership; it has become apparent to me that I can no longer effectively serve as a councillor for the township. For this reason I resign, effective immediately, from my township of Billings councillor position and committees that I currently sit on as a Billings councillor.”
Mr. Cahill explained, “The irreconcilable differences relate to accountability, transparency and financial integrity. Section 224 of Ontario’s Municipal Act outlines the role of council, and by extension, the role of individual councillors. Section 224, subsection (d.1), specifically states part of the role is to ensure the accountability and transparency of the operations of the municipality, including the activities of the senior management of the municipality.” Subsection (e) goes further to state that part of the role is also ‘to maintain the financial integrity of the municipality.’ My interpretation of what accountability, transparency and financial integrity mean is, in my opinion, quite different from what Billings leadership’s interpretation is, so different that the differences are not reconcilable.”
“The Old Mill waterline played a role in my final decision to resign, but there were other experiences with township leadership that also played a role,” Mr. Cahill said. “The Old Mill Waterline situation was the latest, and was the straw that broke the back.”
Mr. Cahill explained that on December 13 he was made aware by a member of the public that the townships’ previous council passed a ‘2021-2027 Water System Financial Plan’ in 2020. In 2020, council passed a financial plan for the water system for Billings, a seven-year budget cash flow reserve for repairs and maintenance. However, this plan was not mentioned by the Mayor or CAO Emily Dance at our meetings discussing the Old Mill Waterline project. At our last meeting (December 12), there was no mention of a reserve or budget in place.”
Mr. Cahill continued, “this township water system financial plan outlines that there is a township water bank account and this water bank account is the township’s water reserve. The water system financial plan also outlines that for the Old Mill Road waterline project, the non-grant portion of the project, which we know now is $449,351, would be funded using the water bank account/water reserve. There is no mention in the plan of using capital cost recovery for water users/properties to fund the non-grant portion of the Old Mill Waterline project. The township’s water bank account/water reserve is supposed to fund this (cost) according to the township’s water system financial plan.”
“The water system financial plan indicates that the water bank account/water reserve held a beginning balance of $286,470 at the start of 2021,” continued Mr. Cahill. “This water system financial plan was approved by last council but I don’t know why current township leadership, during the several meetings this year about the Old Mill waterline projects, has never referred to this water system financial plan or to the water bank account/water reserve to fund the non-grant portion of the Old Mill waterline project (the $449,351)?”
Mr. Cahill continued, pointing out “current council was informed at the December 12 council meeting that a water bank account existed, however, the balance in this account was unavailable at that time. Instead of using the water bank account/water reserve to pay for $449,351, the township is looking to pass a by-law in January 2024 charging water system users/properties $207,997, $888.88 per each of the 234 water system users/water properties, with the township (all taxpayers) funding $241,353 of the $449,351 non-grant funded portion of the waterline project. Water system users/properties have already paid water fees to build the balance in the township’s water bank account/water reserve and the balance in the water bank account/water reserve should, in my opinion, be used first as a funding source for the $449,351 non-grant funded portion of the project. Water users should not be asked to pay twice for the non-funded portion of the project. However, there first needs to be a balance in the water bank account/water reserve before the band account/reserve can cover any of the non-grant funded portion of the project.”
“I regret that I did not know about the township’s water system financial plan ahead of the many council discussions about the Old Mill Road waterline project,” continued Mr. Cahill. “My bad for not reading every report in the township’s database. Now that I know what I found out on December 13 about the water system financial plan and water bank account/water reserve, I believe that the township’s water bank account balance/water reserve balance should be disclosed to council during an open council meeting and seriously discussed by council at an open council meeting before council votes on the capital cost recovery Old Mill Road waterline project bylaw in January 2024. The outline of which was passed by council during the December 12 council meeting, again passed before council was aware of the township’s water system financial plan. Once the balance in the water bank account/reserve is known, in my opinion, council should direct staff to use these funds first to fund the non-grant portion of the project before looking to water users to fund any non-grant portion.”
“Additionally, council should direct staff to fully reconcile the township’s water bank account/water reserve in order to account for the $286,470 water account/reserve balance at the beginning of 2021, right up to current water account/reserve balance, and report findings back to council. Also in my opinion, the public and council should receive a written explanation from township leadership as to why the 2021-2022 water system financial plan and the township’s water bank account/water reserve were never disclosed to council in any Old Mill Road waterline project reports, or discussed with council during any Old Mill waterline project reports, or discussed with council during any Old Mill waterline project council meetings, other than the revelation of the existence of a water bank account at the December 12 meeting.”
