THE
SERVING THE MAPLETON COMMUNITY
COMMUNITY NEWS Volume 49 Issue 06
Drayton, Ontario
1 Year GIC - 1.82% 3 Year GIC - 2.00% 5 Year GIC - 2.40% Daily Interest 1.00%
638-3328
Friday, February 12, 2016
www.jackfinancial.ca
Staff report: Consultant study shows Mapleton on the right budget track
Alma Plunger Toss a success Taking the plunge - Team de Bock member Meegan de Bock takes aim during a preliminary round match at the Alma Optimist Club’s annual Plunger Toss event on Feb. 6. A total of 56 teams participated in the event. Proceeds from the day support local Optimist community betterment projects. Team 54, consisting of Andy Hunter, Shawn Vervoort, Chris Clark and Bob Hahn won the event. More coverage on page 8. photo by Patrick Raftis
by Patrick Raftis MAPLETON - A staff analysis of a consultant’s annual review of Ontario municipalities indicates the township is on the right track in dealing with its infrastructure deficit and long-term financial challenges. Since 2000, BMA Management Consultants Inc., an independent consulting firm, has undertaken an annual comparative study on behalf of participating Ontario municipalities. In 2015, Wellington County was among the participants, with all lower tier municipalities providing data in various categories. The review looks at both financial and operational aspects of municipal operations in a number of categories. Municipal Study - 2015 includes statistics related to population growth, tax rates and assessment, development charges and other selected indicators. Mapleton director of finance Yufang Du presented a report highlighting some of the study’s implications for Mapleton at the Jan. 26 council meeting. The report looks at socioeconomic factors “which provide insight into a municipality’s collective ability to generate revenue relative to the municipality’s demand for public services,” the staff report states. The BMA review shows Mapleton with the fifth largest population (10,359) among Wellington County’s seven lower tier municipalities and also the fifth highest average household income ($93,190). BMA figures show Centre Wellington, with the highest population, has a estimated average household income of $103,900 (fourth on the list).
Puslinch, with the smallest population (7,489), boasts the highest average household income at $144,691. Minto and Wellington North have the lowest income levels, $76,178 and $76,787 respectively. Minto’s 2015 population was pegged at 8,423, compared to 12,018 for Wellington North. The study puts Erin’s population at 12,220 and average household income at $132,924 and Guelph-Eramosa’s numbers at 12,952 and $127,048. Across the county, average household income was estimated at $107,817. Mapleton was also fifth in terms of population increase between 2011 and 2015, with a 3.7% growth rate. Erin was the fastest-growing municipality in the county with a 13.5% rise in population during the same period, followed by Puslinch at 6.5%, Wellington North at 4.7%, Centre Wellington at 4.5%, Mapleton at 3.7% and Minto at 1.1%. GuelphEramosa experienced a drop in population of -3.8% during the period. County-wide the growth rate was 5.7%. Weighted assessment The review shows Mapleton has a large proportion of farmland and the township’s percentage change from unweighted to weighted assessment is highest. “It indicates that the tax burden shifts from farm class to residential class,” the staff report states. BMA figures show Mapleton is in good financial position on a cash basis, but at a deficit of 21.4% when comparing operational revenues to operating expenses. Mapleton also has the highest asset consumption ratio (accumulated amortiza-
tion compared to gross cost of capital assets) in the county at 65.2%. Guelph-Eramosa is lowest at 35.5%. Du says Mapleton’s high ratio “indicates significant capital asset replacement needs.” Mapleton’s reserves are below average compared to other Wellington municipalities and the provincial average for municipalities with a population under 15,000. “We have a higher risk in the face of variable and uncontrollable factors, such as interest rate change or reduced provincial and federal government funding,” Du states in her report. However, she notes, at the beginning of 2015, Mapleton’s debt service ratio is less than average, indicating the municipality has more room to borrow. The provincial government limits the level of debt that may be incurred by municipalities to no more than 25% of the total own-source revenue that can be used to service debt. However, the study also shows Mapleton has the lowest ranking for own-source revenue in the county, limiting the municipality’s flexibility in terms of the ability to issue debt responsibly without impacting its credit rating. Overall Du states, “The report findings support the township’s multi-year budget, asset management plan and the financial strategies discussed during the budget process. “It indicates that Mapleton has a large infrastructure deficit and significant long-term financial infrastructure challenges.” Council accepted the staff report as information. “I found the study interesting for sure,” commented councillor Michael Martin.
Township passes on joining Butter Tarts and Buggies promotion by Patrick Raftis MAPLETON - Council here has opted not to join four area municipalities in the Butter Tarts and Buggies: Explore the Simpler Life tourism promotion. A promotion agreement between the municipalities of Wellington North, Mapleton, Minto, Southgate and West Grey was presented for consideration at the Jan. 26 meeting. CAO Brad McRoberts explained in a report the initiative was discussed at a concept level with the township’s economic development commit-
tee on Nov. 30. Since then a formal Butter Tart & Buggies: Explore the Simpler Life tourism promotion agreement was received. The agreement commits the partners to develop and operate the promotion, with each municipality contributing $5,000 annually for two years. Over 20 initiatives Under the proposal, businesses involved would be charged a membership fee with municipal and business financial contributions going towards development and delivery of the program, direct-
Main St. W. Palmerston
SISTERS
Rated 14A and
118 minutes
SHOWTIMES: Friday and Saturday 8pm and Sunday 7pm
Family Day Special Event! Magic & Comedy Show. See website for details
For more info call 519-343-3640 or visit www.norgantheatre.com
ed by a steering committee. McRoberts pointed out the municipality, which is currently in the process of replacing its business development and marketing coordinator, already has more than 20 economic development initiatives on the go. “Adding an additional program at this time may not be possible,” McRoberts stated in his report, which recommended the municipality not participate at this time. “Personally I would love to know more about the program before I would make the
decision on it,” said councillor Michael Martin. McRoberts explained, “There’s nothing complicated about what this is. Your $5,000 contribution is basically going to establish a map of the route. Once it’s in place basically it operates itself ... but there’s a significant effort off the bat.” Not forever “Hopefully if you say no this year we’re not saying no forever,” said councillor Marlene Ottens. “It seems like a good idea … it’s just not the right time for Mapleton because $5,000 is a lot to invest
Weekly Wag
little is love. But a d e e n u o y ll A hurt. then doesn’t d n a w o n te chocola Schulz - Charles M.
in something that’s currently abstract. Also we don’t have a staff person.” “The resolution does say ‘at this time,’” Mayor Neil Driscoll pointed out. He added, “The thing that really concerns me the most is it seems we too often just follow the others. Mapleton has a whole lot of special things that we don’t promote … I think for once we need to set out on our own.” The mayor continued, “We’re always talking about the businesses and ‘how will they be affected?’ But we have
BILL’S
a population in our municipalities that may not be asking for this ... you could be stopped on the road and asked for your picture. The part that really gets me is when they say ‘a simpler life.’ “I think we maybe need to look into this a lot more and make sure the population that they are referring to is okay with this program.” Council passed, with Martin opposed, a resolution to receive the report for information and to state the township will not participate in the promotion at this time.
PAINT and COLLISION Specializing in... Collision and Complete Re-Finishing, One Mile East of Moorefield.
519
638-2048