After months of discussion, United Counties of Prescott and Russell (UCPR) council has adopted a policy which will allow the regional level of government to provide financial assistance to municipalities for infrastructure projects. The Upper and Lower Tier Partnership Policy is seen as a way of helping facilitate commercial and industrial growth.
The bylaw establishing the policy was adopted by council on June 28. It establishes a reserve fund using one per cent of the previous year’s annualized UCPR tax levy, net of growth, or the supplementary taxes collected by the UCPR during the previous year. If the supplementary taxes end up being less than the amount calculated, the amount contributed to the reserve fund shall be an amount equivalent to the actual supplementary taxes collected that year. Additionally, the amount deposited in the reserve fund must never exceed one per cent of the previous year’s annualized levy, net of growth.
Council also has the option of transferring all or part of any yearly budget surplus to the partnership reserve fund, rather than using it for working capital.
Any funds requested by a lower-tier municipality from the UCPR reserve fund must not exceed the balance of the fund and must not exceed 25 per cent of the cost of the project the lower tier municipality is planning to finance. However, UCPR council does have the option of approving, by special resolution, a request exceeding 25 per cent.
At the June 14 UCPR Committee of the Whole meeting, Russell Township Mayor Pierre Leroux expressed that the available funds will be insufficient; the balance does not have a compounded capacity to grow, especially if more than one municipality had a project on the go at the same time.
“The policy’s a good start, I just don’t think it goes far enough,” said The Nation Mayor Francis Brière.
He was also concerned the reserve fund will not provide enough money to give substantial help to municipalities.
“I don’t even think it would cover the engineering costs,” Brière remarked.
Clarence-Rockland Mayor Mario Zanth said all governments have debts and described the constant transfer of funds between levels as “a house of cards waiting to fall.” He said there is a disconnect between available funding from government and initiatives like plans to increase immigration without providing the funding to accommodate the growth in population. He also suggested the UCPR could adjust tax ratios to benefit municipalities.
Chief Administrative Officer Stéphane Parisien cautioned against compounding the fund at this stage because the UCPR is awaiting the details of the mortgage it will hold on the new Prescott and Russell Residence.
“I’m suggesting we have the discussion on compounding once we know what the mortgage on the new long-term care facility is going to be,” Parisien said.
Casselman Mayor Geneviève Lajoie said the partnership should ensure equity among municipalities. She does. Does not want to see municipalities competing against each other for projects.
Leroux said there would never be equity with so little being set aside for the fund.
“With compounding, you can do multiple projects at a time,” he said.
“There’s more than just infrastructure,” Lajoie said. She would rather see a greater focus on social projects.
On June 14, Zanth moved to accept the policy so it could be given eventual approval as a bylaw on June 28. Hawkesbury Mayor Robert Lefebvre seconded the motion. Leroux agreed but said he wants a report showing how the reserve fund will help plans to provide water and sewer services to Russell Township’s industrial park.
“How can we leverage this to help the 417 industrial park receive services?” he questioned.
“I’m just disappointed,” Leroux concluded about the terms of the new policy.
