Mayor Joanne Ross-Zuj will be lobbying hard at the AMO conference later this month to stave off provincial grant cuts that could have huge tax implications here.
Provincial ministers and staff regularly attend the Association of Municipalities of Ontario conference to hear from municipal politicians.
The problem for Centre Wellington stems from Fergus growth. The former town has now exceeded the 10,000 population mark, according to the 2006 census, and a provincial government looking to save money is using that as a reason to cut its grants to Centre Wellington.
The grant in question is the Ontario Municipal Partnership Fund (OMPF), although its name has changed a few times over the years.
Ross-Zuj said the province is reviewing its services and learned Fergus exceeded the population mark, so the township is losing its rural status.
Treasurer Wes Snarr sent a report to council stating the township’s rural measure changed from 100% to 30%, meaning the rural component of the OMPF grant will be cut “from $1,542,600 to $164,400.”
Snarr noted that in 2008 and 2009, the province provided additional funding to municipalities affected by the census. For Centre Wellington, that amounted to almost $1.38-million.
Ross-Zuj sent a letter to provincial Treasurer Dwight Duncan, with copies to Minister of Municipal Affairs and Housing Jim Watson and local MPP Ted Arnott to advise them of the township’s difficulties.
She stated, “The mitigation funding for Centre Wellington has been $1,378,200 per year. To put this into perspective, it would require a tax rate increase on the township’s portion of the tax bill of approximately 17% to make up the loss of the funding.”
Ross-Zuj said the funding is especially important to the township because Centre Wellington has used some of that cash to obtain infrastructure grants. She cited the 8th Line bridge in old Pilkington as one prime use of that cash.
That bridge received funding several years ago, but when council finally decided to build it, the cost had increased while the specific grants for it had remained the same. The partnership grant helped pay the difference and the bridge is scheduled for construction this year.
Ross-Zuj said of the slashing of the grant, “It doesn’t take into consideration we are an amalgamated community. Because Fergus exceeds the population limit we all … lose over $1-million.”
She said the township is in “a unique situation” because of amalgamation. She noted that Orangeville, for example, was well over the population limit, but it was a single municipality within Dufferin County. Fergus and Elora are two distinct communities in a rural township.
She said the provincial government wanted communities to amalgamate so high assessment areas such as urban centres could help support rural areas, but the grant slashing means exactly the opposite.
Ross-Zuj also noted that, ironically, a population shift would change the rules again.
“If we convinced 2,000 people to move over to Elora … It’s a bit ridiculous that one tips the others into being losers,” she said.
She has arranged meetings with ministry staff to argue the township’s case at the Association of Municipalities of Ontario meeting, to be held later this month.
Arnott was quick to support the township. The day after Snarr’s letter was send to council, he wrote to Duncan, “the mayor has made a very strong case for the continuation of this program, as she demonstrates that its funding has been put to very good use in Centre Wellington.”
Arnott asked the minister to “provide your authoritative response you will not cancel or limit OMPF funding resulting from the municipal fiscal and service delivery review.”
