CENTRAL MANITOULIN—Following conversations between Central Manitoulin Mayor Richard Stephens, CAO Denise Laforge and officials at the Ministry of Transportation (MTO), Mayor Stephens expressed confidence that the ministry will cover the overspend by United Manitoulin Islands Transit (UMIT) during the municipality’s Finance and Economic Development committee meeting on February 16.
The public transit pilot was being funded through the municipality until recently. Following the withdrawal of the municipality from the project, it was discovered that UMIT had spent well over $100,000 more than was allocated. “UMIT had dipped into our kitty,” Mayor Stephens characterized the issue and said that he and the CAO questioned the ministry on “how that was allowed to happen.”
The mayor said that the ministry only paid those invoices which it had received. “They indicated that they were willing to pay more,” Mayor Stephens informed council.
Since UMIT quit operations before all of the allocated funding had been spent, Mayor Stephens indicated that funding remained and the municipality would be submitting invoices for the overspend by UMIT.
Mayor Stephens strongly criticized the management of the public transit pilot program during his briefing of council, noting that the resignation of high-profile members of the community from its board was an early warning that things were not as they should be.
Councillor Derek Stephens asked if the tally could go over the originally allocated $500,000. Mayor Stephens responded that there was $250,000 that was to be allocated over the next two years of the project. “Because we closed operations down mid-term, there was supposedly $750,000 there for this project,” he said. “As long as we show we spent that, the municipality will be reimbursed.”
Mayor Stephens went on to say that the municipality would therefore not be on the hook for the deficit they first feared.
Councillor Stephens alleged that “it was a poorly administered program with no accountability,” given the massive overspending that was allowed to occur. Councillor Stephens went on to note that he could not blame those board members who resigned from UMIT.
