Stop the bullying: Augustyn
Pelham’s mayor is considering billing the Region for more than $150,000 his town has spent defending its finances.
Mayor Dave Augustyn is describing Niagara Region’s continuing scrutiny of his town as “bullying,” as the Ontario Municipal Board determines its jurisdiction regarding a motion by Niagara’s audit committee dealing with Pelham’s finances.
The motion approved by the audit committee Monday, which essentially asks that the OMB conduct an inquiry into Pelham’s debt related to its community centre and arena development, was based on legislation that is “probably not very commonly used,” said committee chair and Grimsby Coun. Tony Quirk.
Although the motion caused some confusion for the OMB, which initially reported Tuesday such an inquiry would not fall within the organization’s jurisdiction, Quirk pointed out that the motion refers to sections of the Municipal Affairs Act and the Ontario Municipal Board Act that give the OMB “special jurisdiction and powers.”
As a result, OMB spokesperson Monica Patricio said the organization will be “looking into the sections” Quirk referred to, “and will be sending you a followup response.”
But under that legislation — copies were included within an email from Quirk — the town would have to default on its debt payments and obligations, or be at risk of doing so, before the OMB would be able to get involved.
And Pelham’s mayor said that is not going to happen.
“No, there’s no chance,” Augustyn said.
“The treasurer has outlined the plan going forward and there’s no risk of that.”
Instead, Augustyn said the Region’s latest effort to scrutinize Pelham is yet another example of bullying tactics that some Niagara Region councillors have been using.
And residents from throughout the Region, Augustyn added, “are sick and tired of it.”
Quirk said Pelham’s mayor “needs to grow a thicker skin, or stop misleading the people of Pelham about the dire state of their finances.”
“An independent OMB inquiry is the only way to clear the air,” he said.
Augustyn said the town has spent at least $150,000 of taxpayers’ money so far defending itself against the scrutiny.
That money included the cost of hiring KPMG to conduct a forensic investigation of town finances which showed there was no wrongdoing involved in Pelham’s land deals regarding east Fonthill development. Nevertheless, the town continues to be under fire.
“Now they’re saying, ‘We’re not happy with any of that.’ And they keep going and looking for small little things to criticize,” Augustyn said, referring to the audit committee’s motion.
“These folks, they just say these things to make a point whether there’s truth in it or not, and that’s what a bully does.”
And because of a few questions that arose from the 133-page auditor’s report, he said, committee members voted to say, “We’re going to go to the minister, we’re going to go to the province.”
Augustyn said Pelham has already approached the province regarding the project and others’ concerns about it.
Municipal Affairs Minister Bill Mauro has been kept “up to speed on everything” regarding the project, he said.
“I think the minister will consider (the audit committee motion) for what it’s worth.”
Despite the mayor’s doubts that an OMB inquiry would be warranted, Quirk said information within the KPMG report itself, including the town’s high ranking on municipal debt indicators, as well as the use of municipal credits, warrants “greater scrutiny.”
The committee’s motion regarding the OMB inquiry was one of several approved during the meeting pertaining to Pelham. Committee members also approved a motion to ask all Niagara municipalities to establish taxpayer affordability guidelines, as well as a motion asking staff to verify if regional development charges were paid for projects that were part of the development in east Fonthill.
The taxpayer affordability motion, Augustyn said, was developed after a regional council meeting nearly a year ago, when “councillors attacked Pelham.”
Although the motion initially singled out Pelham, it was later amended to apply to all municipalities.
“I actually look at that as a bit of success to say that the rest that they put in the motion (specific to Pelham) was wrong, and we refuted it through our 335page response,” Augustyn said, referring to a document the town developed last year in response to allegations of financial mismanagement.
But that motion too, he said, is an example of the Region bullying municipalities.
“This is the Region saying to municipalities do what we say or we’re going to do what we’ve done to Pelham,” Augustyn said.
“The motion is saying develop a taxpayer affordability guideline or we’re going to out you. I don’t think people want their governments to work that way. People want their governments to get along. They want their governments to work hand-in-hand instead of the ‘do-as-wesay’ kind of approach that the Region continues to take.”
Augustyn said it’s the same behaviour by the same people that was used in response to public concerns about Niagara Peninsula Conservation Authority.
“‘Oh, you have questions, we’re going to sue you.’ ‘Oh, we lost the lawsuit, we’re going to blame the judge, and we’re going to blame you again.’ It’s the same people and it’s the same type of bullying,” he said.
Augustyn said Port Colborne Coun. David Barrick’s attack on Port Colborne council is another example of the bullying he referenced.
At Monday’s audit committee meeting, Barrick slammed his city councillors because, said Augustyn, “they dared side with Pelham in saying that the Region is dipping into local jurisdiction and they shouldn’t be.”
Port Colborne Ward 1 Coun. Dave Elliott called Barrick’s comments offensive.
“He has no say in what the council of the City of Port Colborne does, or our opinions,” said Elliott, who introduced the Port Colborne council motion in December.
“The temperature of politics in the Region is such now that Dave Barrick wins the race to the bottom. He actually does, because he’s calling out the council of the city in which he lives and was actually part of at one time, and represents at the Region.”
Augustyn concedes that the town’s debt is higher than many neighbouring communities, bringing its repayment costs to about 15 per cent of income. He said the town, however, plans to pay back more than half of that debt through development charges related to the unprecedented growth it is seeing.
Meanwhile, community concerns about the town’s finances are now being addressed in the appropriate forum — town hall, he added.
Augustyn said members of the Pelham DEBT group met for the first time Friday with town staff, where they spent three hours discussing their concerns about the town’s finances.
At Monday’s audit committee meeting, representatives of the Pelham DEBT taxpayers group said they felt they were making progress towards resolving their concerns. Augustyn said he’d like to see that progress continue.
“Staff say the door’s open,” he said. “I think the better thing to do is for them to actually meet with staff.”
Augustyn said Pelham councillors will be receiving a report on the amount the town has paid defending itself against allegations from regional council, “but it’s more than $150,000 for all of this, defending the town against the bullying from the Region.”
At the next town council meeting, Feb. 5, Pelham council will consider sending a bill to Niagara Region, asking to be reimbursed for the costs incurred.
The temperature of politics in the Region is such now that Dave Barrick wins the race to the bottom.” Port Colborne Ward 1 Coun. Dave Elliott