GORE BAY—While most of the issues on the Town of Northeastern Manitoulin and the Islands (NEMI) transition to its own planning authority is something the town representatives and the Manitoulin Planning Board (MPB) agree on wholeheartedly to work together on where needed, the issue of reserves built up and how much, if any, is going to be provided to NEMI is one that has proven to be a sticking point.
“On the issue of reserve funds, the answer we had received from the questions we had sent to the board regarding our transition is that the reserve funds belong to the board are under dispute. I was curious why?” asked NEMI Mayor Al MacNevin in a meeting he and Dave Williamson, CAO of NEMI, had with the executive council of the MPB last week.
“We need to go over everything in terms of costs and our audit for 2016,” said Ken Noland, MPB chair. “We will have expenses for 2016 (when NEMI was still part of the MPB) as part of our audit. We need to go over everything.” He noted that the board will have costs going forward for the unorganized townships of Robinson and Dawson to update the zoning bylaws. “It is a requirement by the province that our zoning bylaws conform and our auditor recommends this should come out of reserves. We need to go over everything and there will be costs earmarked for 2016 but the audit won’t be complete until 2017 and the audit paid (in 2017).”
Mr. Williamson questioned what the MPB audit cost was in 2016 and Elva Carter, secretary-treasurer of the MPB, noted that it was about $4,500.
“Then distribute NEMI’s portion of what remains (in reserves), that is fair,” said Mr. Williamson.
“Before we look at anything else I would like to see what the reserves are earmarked for,” said Mr. Noland.
It was pointed out by MPB member Richard Stephens the board had funds set aside for projects that it had in the works for 2017 and beyond.
It was pointed out at the meeting NEMI pays 33 percent of the share of the municipal contributions to the MPB yearly, but that this is only 17 percent of the total MPB budget.
Ms. Carter said that the MPB auditors’ advice is that the reserves belong to the board and that they need to keep reserves in place for its operations.
“The reserves do belong to the board, but NEMI belonged to the board. These funds have accumulated over the years,” said Mr. Williamson, noting that NEMI has provided 33 percent of the dollars in the MPB budget. “We also have a planning authority that we are going forward on as well.”
“In any corporation you are not able to negotiate how much you get out of reserves,” said Mr. Stephens. “You take your shares and move on.”
Mr. Williamson said with the MPB reserves at about $80,000, “realistically you are not going to spend $40,000. It seems there is sufficient reserves for the board to continue on as it has and sufficient for what we are doing as well.”
Ms. Carter explained the MPB auditor says the board should have at least one-sixth of its budget in reserves.
“We are not arguing that,” said Mr. Williamson, but he said NEMI should be provided 33 percent of this.
Mr. Noland suggested that the MPB put the numbers together as far as operations and future expenses and, as well, look at its reserves.
Mr. Williamson pointed out the reserves the MPB has built up have taken place over time, with NEMI being part of the process and the board when these reserves were accumulated.
“The reserves were built in the years we had big numbers of applications (not from municipal requisitions),” said Ms. Carter.
“No doubt dollars were socked away in reserve and every municipality contributed financially to this,” said Mr. Williamson.
“I agree with Ken we need to put the numbers together and then look and then discuss this further,” said Mr. Stephens.
In the early years of the MPB the building application numbers were good, so the reserves were built up, explained Ms. Carter. “For the last few years the budget has been tight for adding to the reserves.”
“Prior to amalgamation, the provincial contribution for planning in the unincorporated areas was $43,000 but this amount has been reduced to $16,000,” said Mr. Noland.
MPB member Eric Russell questioned what the Ministry of Municipal Affairs and Housing (MMAH) is saying on this issue. “They say we (NEMI and the MPB) are on our own,” said Mr. MacNevin.
“This is because this is the first time that a municipality, which has been in a planning board structure, has requested its own planning authority and official plan,” said Mr. Stephens.
Mr. Williamson said, “you (MPB) operate off land use development applications and municipal requisitions and the province provides funds for the unincorporated municipalities. Its municipal requisitions you put out an annual basis, which provides for the gaps needed to operate in a year. If you generate more money it goes into reserves. It’s 33 percent that our municipality provides for the MPB each year that we are requesting.”
“This is a different interpretation than we have,” said Mr. Noland, noting that it it is probably more like 17 percent that is provided by NEMI toward the MPB budget.
“I was told 33 percent is fair based on the application fees made by the board in a year,” said Mr. MacNevin.
Mr. Russell said “the minister could have laid out all the policies that needed to be followed for this process, instead of having this cause hard feelings. Why didn’t they (province) not put everything on the table so that the policies are laid out for both parties?”
“No, the ministry would like us to resolve all our issues (MPB-NEMI) on our own,” said Mr. MacNevin. “It is like a divorce, if we can’t resolve all our issues then the courts will have to do this for us.”
The MPB executive council asked the secretary-treasurer to prepare a full financial report for further discussion by the MPB and with NEMI.
