Higher costs for more bureaucracy

New municipal rules will ‘financially cripple’ small communities, rural committee says

A group of rural communities in Western P.E.I. says the new Municipal Government Act will “financially cripple” small communities if it goes ahead without changes.

Dave Pizio, chairman of the community improvement committee of Greenmount-Montrose, appeared before a legislative standing committee last week to voice the concerns of six West Prince communities about the impending enactment of the new law to govern municipalities in P.E.I.

Many of the main concerns revolve around the financial burden that will be placed on smaller communities in trying to meet the new mandatory minimum service levels laid out in the act.

But people are also wondering what improvements they will see from the additional costs involved in these services, Pizio said. He pointed to the new regional economic advisory councils as well as existing voluntary fire districts and Access P.E.I. offices across P.E.I.

Islanders in rural areas are already well served by these entities, Pizio said.

“We’re simply adding another level of bureaucracy in the way of administration when we already have things in place.”

The biggest changes in the Municipal Government Act (MGA) will see the establishment of mandatory minimum services that all municipalities will be required to provide, including: fire protection, land use planning including official plans and bylaws and emergency measures planning.

Municipal offices will be required for every incorporated area that must be open at least 20 hours per week.

Community councils will also be subject to stricter financial reporting rules, including annual audits and financial plans, which must include an operating budget, capital budget, five-year capital plan and an asset management strategy.

Pizio says the communities he represents have estimated these services alone could increase their annual administration costs by between 155 to 345 per cent.

“It’s going to financially cripple to the point that the small communities, unless something drastic changes, are going to end up dissolving because you cannot go to your residents and say, ‘I’m going to triple your tax rate for no additional services.’ It’s just not a viable thing to be done.”

Pizio further raised concern about the Federation of Municipalities’ endorsement of the Municipal Government Act.

Pizio says not only does the federation not speak for the six communities on this issue, but says there was no consultation with these communities prior to the MGA being adopted into law.

“I find that very concerning; especially when we find that there’s people saying we are speaking for the smaller communities, but we have had no dialogue.”

Overall, Pizio said he believes the MGA is a veiled attempt to push small communities and unincorporated areas into joining forces to meet the terms of the new act.

“My own personal feeling, it’s a backdoor push to force amalgamation and annexation,” he said.

“If that is going to happen, there needs to be better communication of what are the merits of these things… give me empirical data, exact examples that show this is proof that this is a good thing to be done. It has not occurred at that this point.

Government has said the new act will come into force by the end of the year.