A Wellington county councillor wants the county to rethink the way it spends money on libraries, waste collection and debenturing.
Lou Maieron raised several issues on county spending at the April 25 council meeting and contended garbage pickup is not the same for all municipalities.
“I think it’s about time we provide an equitable level to all residents in waste collection,” he told council. “I think it’s time we look at a standard level of services.”
Maieron, mayor of Erin, said his community spends about $850,000 annually for county-run waste collection and receives about $350,000 in actual services. In Erin, rural garbage pickup is done biweekly, while urban pickup is done weekly. The mayor has contended that without a transfer station within his municipal boundaries, part of the money is being spent on a $1 million Aberfoyle transfer station in Puslinch.
He wants a better accounting of how the county spends money on waste pickup, recycling and transfer stations.
According the county treasurer Ken DeHart the annual waste collection budget is $781,700, while recycling collection is $1,163,100.
Maieron also questioned a $8.2 million debenture taken out by the county, claiming that with an estimated $60 million in reserves the county should not have to borrow money.
DeHart said a significant amount of what is being borrowed, $5.7 million is “recoverable from other sources.”
“The largest part of the debt issue is recoverable from other revenue sources ($5.7 million – health unit loan repayments, development charges recoveries,” the treasurer said. “The remainder of the debt, $2.5 million, the cost of borrowing is quite affordable and compares favourably to the rates of returns we’re getting on our investments.”
Warden Chris White said the decision to debenture is based on returns on current investments and established by what he termed “competent financial staff,” at the county. White said county finance staff are always considering best options in county spending, reserves and debenturing.
White said on the issue of debenturing, he believes treasury staff determined it was the best way to go instead of dipping into reserves.
“The reserves are specific reserves. They serve a purpose. We may be making more money by investing it,” the warden said of the debenturing option.
The same applies to a delay in money earmarked for improvements to libraries in Palmerston and Hillsburgh which council approved at its last meeting, despite opposition from Maieron, and three other councillors. The county is planning to spend $2 million in 2015 on the Palmerston library and $4 million on the Hillsburgh facility between 2016 and 2017.
“There are a number of other factors that go into our decision making process including, spreading the cost of facilities that will be enjoyed by residential taxpayers that will be benefitting from the facilities, the affordability of our five-year plan, future reserves, (and) funding restrictions on much of our reserves,” DeHart said in an email to the Advertiser.
“I think this is a responsible debt issue,” the treasurer told council.
On the garbage issue, Councillor Don McKay, chairman of the waste management committee, said Maieron is not looking at the entire system.
“I think councillor Maieron has to look at the full cost, not just waste services,” McKay said of total spending on full waste services. However McKay agreed the county should create a long-term plan for waste services.
“I think we need to look at the full issue,” McKay said.
White declined comment on why the issues are being raised by Maieron.
