NPCA spends interest from overcharges on legal fees
Despite giving back about $1.6 million in overcharges to its three funding municipalities, Niagara Peninsula Conservation Authority is keeping the interest accrued on that money. The agency is instead using the roughly $50,000 in interest to cover its legal costs associated with fighting a Mining and Lands Commissioner Tribunal appeal, launched by Hamilton in 2015. NPCA board chair and Fort Erie regional Coun. Sandy Annunziata took to Twitter last week, replying to a question from Pelham Mayor Dave Augustyn regarding the interest on the money. “Interest was about $50,000,” Annunziata said on Twitter. “The legal costs related to the appeal was about $50,000, so it was a wash.” But Hamilton city Coun. Matthew Green said the decision to use the interest for legal fees is the latest “layer to the ongoing saga which is the NPCA.” “My understanding is that when money is put in trust, the interest needs to accrue unimpeded and untouched and unmolested by the parties,” Green said in an interview, Monday. He also called it a politically motivated decision, timed to coincide with the provincial and municipal elections. “We should all be outraged,” Green added. The $1.6 million has been held in abeyance by NPCA since 2015, while awaiting the outcome of the appeal of the NPCA’s levy apportionment — more than doubling Hamilton’s share of NPCA funding, bringing the total annual contribution from the city to about $1.3 million. The tribunal ruled in NPCA’s favour on Dec. 21, 2017, allowing NPCA to reimburse the three municipalities within the watershed, with $1.28 million going back to Niagara, $331,095 to Hamilton and $31,259 to Haldimand. While presenting a cheque to Niagara Region last week, Annunziata said “returning the money to Niagara taxpayers where it rightfully belongs is the right thing to do.” He said similar presentations would be made in Hamilton and Haldimand. In an email, NPCA vice-chair James Kaspersetz, from Hamilton, said the “dramatic increase” has created enormous pressure on his city’s budgets, and Hamilton representatives have been invited to the NPCA annual general meeting to discuss their concerns. “In an ideal world, it would have been better to bring all the parties together to discuss the funding mechanism. But since the Region of Niagara contributes the greatest amount to the NPCA, any increase to relieve another municipality’s budget constraints would be a hard sell,” he said. “Can you imagine asking Niagara to pay more, so Haldimand and Hamilton could pay less? Definitely a hard sell.” Meanwhile, Hamilton hasn’t abandoned its challenge of NPCA’s levy increase. Annunziata said Hamilton has formerly launched another appeal of NPCA’s levy apportionment. “We have consulted our lawyers and they have suggested to use that it’s unappealable and any attempt will be unsuccessful,” Annunziata said. Green, however, said he would feel that Hamilton has a strong case, “if it wasn’t such a political decision.” For instance, he said the NPCA levy includes the entire city, although only its rural areas are within the watershed. “Why are our residents in the old city of Hamilton, outside the physical watershed, being assessed for a tax rebate for the citizens of Niagara?” Green said. Meanwhile, Green said he put forward a motion at a recent Hamilton city council meeting to ask Hamilton Conservation Authority to bring Binbrook into its catchment area — hoping to eliminate the city’s association with NPCA.