13 August 2014 Presentation to
Kincardine Council
on
Bylaw 2014-044 – The Broken Promise
See references at
http://www.kincardinebrokenpromise.com
Michael D. Smith
Slide 1
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
1.
History
•
Currently the water reserves are at about $5.1 M and
the four members of Council (Anne Eddie, Maureen
Couture, Candy Hewitt and Ken Craig) believe no part
of the reserves should be used to recover the
stranded debt of $1.5 M
•
These same 4 members of Council also believe that
other reserves should not be used for the stranded
debt
Slide 2
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
1. History
•
So in April 2014, by a split decision the Council
decided to place the burden for the stranded debt on
the same property owners who had strongly objected
to the pipeline in the first place. The charge amounted
to $7,260 per lot.
•
These property owners were already on good wells
and had no use or need for the water. They had
absolutely nothing to do with the origination of the
project.
Slide 3
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
2. Integrity and Morality
•
The Kincardine Broken Promise is not only highly
unusual among municipalities; it appears to be a
precedent.
•
There appears to be no record on Google or elsewhere
of a Municipality breaking a commitment with its rate
payers resulting in such a large unexpected and
targeted tax.
Slide 4
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
2. Integrity and Morality
•
Integrity is critical to the proper functioning of any
government administration.
•
There will be other projects such as the natural gas
pipeline and sewers at Inverhuron where you will
need to make commitments with the residents
•
There will be businesses looking to invest in
Kincardine where you may be offering incentives.
•
If residents and businesses can no longer trust the
Council of Kincardine to keep its word, it could be
devastating for future investments here.
Slide 5
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
3. Democracy
•
Most of the discussions leading to bylaw 2014-044
were held between November, 2013 and April, 2014
when many property owners were not here
Slide 6
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
3. Democracy
•
Council was also aware that Randy Roppel who was
on vacation would have voted for Option 3
which would have paid off the $1.5 M in stranded
debt with Reserves
•
Attempts were made to delay the vote until Randy
would be back and certain members of the Council
forced the vote, knowing he was the Councillor
representing a significant portion of the people most
effected by the bylaw
•
This is a serious, cynical and deliberate departure
from democracy
Slide 7
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
4. Communication with Constituents
•
During the period from November 2013 and April
2014, there was no attempt by Council to advise the
targeted property owners that they were
contemplating a tax of $7,260 on each property
without a municipal water connection to solve their
debt problems
•
If you read the news clippings for that 6 month
period, the discussion was largely between Council
and the Municipal Staff.
•
There were no delegations or discussions with the
affected constituents. You can read the history on our
web site.
http://www.kincardinebrokenpromise.com/History.html Slide 8
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
4. Communication with Constituents
This lack of direct communication is not reasonable for
major decisions. It reflects a cynical disregard for the
property owners on the pipeline route that has been
reflected in past decisions by Council on matters like:
•
•
•
Market Value Assessment
The Kincardine Official Plan and
The Willing DGR Host Plan
which were largely discussed and passed in the winter
time.
•
The survey for the Willing DGR Host was conducted in
the winter when almost 100% of the recipients were
Bruce Nuclear workers
Slide 9
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
5. Users: Definition
One of the arguments for bylaw 2014-044 is that other
communities charge user fees for water pipes that pass a
home that does not use or need the water
Slide 10
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
5. Users: Definition
We have some references that beg to differ:
• Guide to Establishing the Level of a Cost-Based User
Fee or Regulatory Charge, Treasury Board of Canada
Secretariat
Stakeholder involvement is critical in setting user
fees or taxes.
•
Benefit Taxes and User Fees in Theory and Practice,
David G. Duff, Associate Professor, University of
Toronto, Faculty of Law
The user fees or taxes relate to the benefit of the
service the user receives
Slide 11
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
5. Users: Definition
Making home owners pay a tax for a service they don’t
want or need is not consistent with these and many other
references and is totally unfair.
We are happy to pay for the water service if and when we
hook up, but not before.
Slide 12
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
6. Cottagers: Definition
• Cottagers are only here for an equivalent of 2 or 3 months of
the year
• Many have cottages because they inherited them from their
parents and they from their parents
• Over half are retired and on fixed incomes
• They find it difficult to address an extra financial burden of
$7,260 plus up to $20,000 for hook up costs
• Many home owners have double lots where the second lot is
a parking or storage lot and they are receiving a second tax
bill. Its bad enough to receive a tax bill for water you won’t
use but it’s a total insult to receive 2 tax bills for water you
won’t ever use.
Slide 13
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
6. Cottagers: Definition
In some cases, cottagers are less fortunate than average.
Some cottagers in Inverhuron have been dealing with
increased taxes and costs of living by severing off parts of
their property but the severed lots are then difficult to
sell due to pending charges from:
• Bylaw 2014-044
• New Sewer and Water Project and
• The DGR
And their property values are further depressed from the
anti-nuclear publicity from Fukushima
Slide 14
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
7. Year Round Home Owners: Definition
•
15% to 20% of the people effected by Bylaw 2014044 are year round home owners
•
Again most of the year round people effected by the
Bylaw are retired and on fixed incomes
•
We have a number of year round people speaking
tonight and you can hear their stories yourselves.
Slide 15
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
8. Kincardine Treated Water: Definition
•
There seems to be a perception in some Councillor’s
minds that Kincardine water is better and safer than
our well water
Slide 16
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
8. Kincardine Treated Water: Definition
May we remind you:
• The Walkerton tragedy involved people in the City of
Walkerton
•
The farmers on their own rural wells outside
Walkerton continued to have good water at that
difficult time
Slide 17
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
8. Kincardine Treated Water: Definition
Kincardine Treated water
•
The lake is fed from the Penetangore River that also
has manure from livestock and chemical fertilizer
from farmers’ fields
•
In addition, the effluent from the sewage treatment
plant flows into the lake upstream from the water
intake pipe
•
If Lake Huron evolves like Lake Erie, we could have
toxins from algae making our lake water unsuitable
for drinking or cleaning even if boiled. See “Toledo’s
Contaminated Water”.
Slide 18
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
• Water
contaminated
from an algae
bloom
• You can’t
drink the water.
• You can’t shower
with it.
• You can’t wash
dishes with it.
• Boiling won’t help.
• Can cause liver
and nervous
system damage.
• Over 400,000
people effected.
Slide 19
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
8. Kincardine Treated Water: Definition
• In 1996 the Grey Bruce Health Unit declared that the
Tritium levels in Kincardine Municipal water were within
safe limits
• They also declared that drilled wells in this area had no
Tritium whatsoever.
• In other words, our well water is much safer than
Kincardine Treated water and frankly we would rather
not have radioactive water from Kincardine arbitrarily
shoved down our throats.
Slide 20
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
9. Following the Budget Rules
One argument used by Council is the budget rules i.e.
1. Money comes from different isolated pots
If the Water Pot runs dry, the Municipality cannot
take money from the Sewer Pot
2. If reserves have been built up for future replacement
and repairs, those funds cannot be used for debt
retirement
Slide 21
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
9. Following the Rules
But we should mention some recent transactions by the
Municipality of Kincardine.
We have the sale of Bruce Telecom for about $25 M. This
company originated in Ward 3.
We have license fees from Samsung Pattern of about
$13.5 M from Wind Turbines in Ward 2.
That’s close to $39 million from Ward 2 and 3 but not one
dime of these funds is available to clear the stranded debt
of $1.5 M for Ward 2 and 3 Taxpayers.
Where is all this money going? What is fair and
equitable?
Slide 22
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
9. Following the Rules
So we have Council using the argument of following the
budget rules when substantial funds are available to clear
the stranded debt.
It does not look like following the rules at all; it looks like
a punitive and vindictive charge on the shore line homes
that could be easily and rightfully avoided.
Slide 23
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
10. Legal Action
•
We have formed the “Kincardine Pipeline Promise
Association” for the purpose of opposing the
"Broken
Promise"
•
We have retained a Law Firm with significant municipal
experience to challenge the Broken Promise
legally
Slide 24
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
10. Legal Action
•
We are collecting funds to pay our legal fees and while
individual donations come in small amounts,
they have
grown significantly thanks
to the broad based support
from our
members.
•
We believe we have a strong case that Bylaw 2014 044 is not legal and can be quashed under Section 273
of the Municipal Act and under the principles of natural
justice.
Slide 25
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
11. Summary
Ethics and Morality: The decision on the stranded debt
reduces itself to a question of keeping a promise, past,
present and future.
Procedure: No Communication or Democracy
Hardship: Many people cannot afford this.
Reciprocity: The shore line people get few benefits and pay
more than their share of taxes
We don’t want this water: Walkerton, Tritium or Toledo
Slide 26
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
12. Conclusion
We would ask that one of the 4 Councilors (Anne Eddie,
Maureen Couture, Candy Hewitt, Ken Craig) who voted for
Bylaw 2014-044 permit a re-vote during the first 2 weeks
of September with the full Council present.
Please give this important bylaw the due consideration it
deserves.
Slide 27
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
12. Individual Cases
We have 5 individual cases that help give a personal
perspective on how Bylaw 2014-044 effects individual
people.
These are not statistics with Options 1 through 7, these are
real people.
The average time of each story is 2 minutes.
Slide 28
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
Individual Story #1 – Linda Gallina
Told by Son-in-Law Ken
Young
Linda Gallina
Driveway is 1500 feet long
and lies between Craig
Drive and Whippoorwill
Driveway
Lane.
Slide 29
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
Individual Story #2 – Florene O’Brien
Lorne Beach
Home is 800 feet from
the water pipe line at
Upper Lorne Beach
Road.
Florene
O’Brien
Upper Lorne
Beach Road
Collins Drive
Slide 30
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
Individual Story #3 –
Karen Ballock
Victoria Street
Inverhuron
Home is on bedrock
over 1000 feet from
the water pipe line at
Victoria Street.
Karen and Steve Ballock
171 Victoria Street,
Inverhuron
Driveway
Slide 31
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
Individual Story #4 – Reverend Gordon Geiger
represented by his son Ross.
Reverend Gordon Geiger
236 Victoria Street
Inverhuron
Slide 32
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
Individual Story #5 – Double Lots Inverhuron
explained by Sylvia Stepnow on behalf of Mary
Morris and other double lot owners.
71, 73, 75, 77
Lake Street
The lots on the Victoria
Street side have and will
always be used for
parking and storage yet
they are billed for a
51, 53, 59
water connection.
Lake Street
Slide 33
13 August 2014 Presentation to Kincardine Council
On Bylaw 2014-044
Thank you for hearing our story
Slide 34