amalgamation presentation

Report
RM of Glenella
Public Meeting
Amalgamation
November 7, 2013
What is amalgamation?
• Amalgamation is the dissolution of one or
more business entities and the transfer of
business of the dissolved entity to another
entity.
• In this situation, it means the end of the RM of
Glenella and the beginning of a newly
amalgamated municipality.
Why discuss amalgamation?
• In November 2012, during the presentation of
the throne speech, it was announced that all
Municipalities with a population of under
1000 must submit an amalgamation plan with
a neighboring municipality to the Province by
December 1, 2013.
• In September 2013, Bill 33, The Municipal
Modernization Act was passed.
Do we have a choice?
• No. The Province is using the census of 2011
as their base mark and 1000 population as the
only determining factor in what makes a
viable municipality.
• Municipalities were created by the Province
and are therefore subject to their wishes.
• Bill 33 gives the Province the authority to
force amalgamations on all municipalities
under 1000 population.
Was the RM of Glenella not already a
viable municipality?
• Yes. We have always fulfilled our municipal obligations. We have
our audits completed in a timely fashion, we are fully PSAB
compliant, we report to the Province on time, have not had any
problems finding and maintaining qualified staff and have never
had a problem filling Council positions during an election.
• We are not close to our borrowing capacity and do not carry
unreasonable debt.
• The fact that we are under 1000 in population makes no difference
to our operations, we have the same square miles to maintain that
we have always had.
• It is extremely disappointing that the Province only uses the 1000
population as their base mark, there are many other issues that
could be considered.
What are our choices of
amalgamation partners?
• The Province has stated that our amalgamation
partner must share a municipal boundary with
us. The municipalities that we share boundaries
with are RM of McCreary, RM of Alonsa, RM of
Lakeview, RM of Westbourne, RM of Lansdowne
and RM of Rosedale.
• The Province has also stated that the
amalgamated municipality must have a
population of at least 1000.
Which municipalities did we talk to?
• The RM of McCreary advised us that they were
preparing an amalgamation plan with the Village of
McCreary.
• The RM of Alonsa, RM of Rosedale and RM of
Westbourne are all over the 1000 threshold and are
therefore not required to submit an amalgamation
plan.
• A letter was sent to The RM of Lakeview requesting a
meeting, however they were not interested in meeting
with us, and their municipality was too small to satisfy
the combined 1000 population.
• A letter was sent to the RM of Lansdowne to
discuss amalgamation, and an initial joint
meeting of both Councils was held June 20, 2013.
• A second joint meeting of both Councils was held
November 1, 2013.
• Their municipality is very similar to the RM of
Glenella. We are both farming communities and
each have one Village.
• Both Councils felt an amalgamation plan could be
done with minimal impact to their ratepayers.
Can we amalgamate with a different
municipality?
• No. A letter was received on Tuesday, November 5,
2013 from the Province stating the RM of Glenella and
the RM of Lansdowne will be amalgamation partners.
Included in their letter was a draft amalgamation plan
that stated if we did not provide an alternative plan the
name of the newly amalgamated municipality would
be “Municipality of Number Ten”
• Prior to receiving this letter, we were already in
discussions with the RM of Lansdowne and have
drafted an alternative plan to the one proposed by the
Province.
What is the amalgamation plan?
• RM of Glenella
• RM of Lansdowne
• Combined population
POP 522
POP 723
1245
• The newly amalgamated municipality will be a
rural municipality. The proposed name is
Municipality of Glenella-Lansdowne.
Where will the Municipal Office be
located?
• The Municipal Office for the newly
amalgamated municipality will be in Glenella.
A satellite office will be maintained in Arden.
• The Glenella Branch of the BPCU will have the
bank account of the newly amalgamated
municipality. Deposits made from the Arden
office will be done in Neepawa and deposited
into the Glenella Branch.
What is the Council Composition?
• The newly amalgamated municipality will have
one Reeve (Head of Council) who will be elected
at large.
• The newly amalgamated municipality will have six
wards with one Councillor elected in each ward.
• Currently the RM of Glenella has 4 wards and the
RM of Lansdowne has 5 wards so this will be an
combined reduction of 3 councillors and 1 Reeve
(4 members of Council)
What about the LUD of Glenella?
• The LUD of Glenella will be dissolved. Section
56 of the Municipal Act states that a local
urban district may be formed if it has at least
250 residents and a population density of at
least 400 residents per square kilometer. The
LUD of Glenella does not meet these
requirements as the current population is well
below 250 residents.
How does amalgamation affect my
assessment?
• Our Assessment Officer, Glen Bell, confirmed
that the assessment of your property is based
on the market value and sale prices of similar
properties in your area. He does not expect
that amalgamation with the RM of Lansdowne
will have an effect on the assessment of your
property.
What does dissolution of the LUD of
Glenella mean to the Village?
• It means the operating budget that was prepared for the Village will be
included in the overall budget of the municipality and all expenses and
income will be at large instead of some urban and some rural.
•
The Councillor of the Ward that the Village is in will be the representative
of the Village on the newly amalgamated municipal Council.
• The newly amalgamated municipality will continue to grade/snowplow
and gravel the streets, snowblow the sidewalks, mow the ditches and
parks as is done now.
• Any additional drainage works including sidewalk repairs , culverts and
ditching will be part of the overall operating budget and overseen by the
newly amalgamated municipality.
Taxation and mill rates.
• Transitional measures will be used for
municipal taxation and differential mill rates
will be used for at least the first term of
Council of the newly amalgamated
municipality.
• This means that services that were provided
and taxed in the municipality of Glenella will
still be provided and taxed in the municipality
of Glenella and vice versa.
How do the mill rates compare?
Amalgamated
At Large
Assessments
Mill rates
At Large
Glenella Service Area
Lansdowne Service Area
46,714,950
RM
Glenella
RM
Lansdowne
15,318,480
31,396,470
Projected
7.977
26.863
22.325
Current
Total Mill Rate – Glenella
34.840
Total Mill Rate – Lansdowne 30.752
38.650
30.301
*Figures based on 2013 budget and assessments
Difference
-3.810
- .469
What about existing debt?
• Neither municipality is carrying much debt.
Both municipalities have a debenture which
relates to the building of the personal care
home in Neepawa which was taken out at the
same time and have the same years
remaining. It was calculated on a per capita
basis and does not change now that the two
have amalgamated.
• Both municipalities also have a debenture
relating to an equipment purchase, the RM of
Glenella purchased a backhoe, the RM of
Lansdowne purchased a grader. These debts
remain with the initial municipality.
• The RM of Lansdowne also has a debenture
related to the water & sewer lines installed in the
Village of Arden. This debenture is charged solely
to the property owners who are in the Village of
Arden as a local improvement tax, this will not
change in amalgamation.
What about Reserve Funds?
• Reserve funds will be carried forward for the
purpose that they were originally intended for.
• Equipment reserve funds will continue to be used
for future equipment purchases.
• Fire dept reserve funds will continue to be used
for future fire dept purchases.
• Building reserve fund will continue to be used for
future building expenditures.
• The LUD reserve fund will remain and be used for
future expenditures within the Village of Glenella
What happens to our Equipment?
• Each municipality currently has a municipal
shop and equipment. Both existing shops will
continue to be maintained in each
municipality along with the current
equipment.
• Amalgamation does not change the number of
roads we have to maintain, or the equipment
and staff required to do it.
What about the Fire Dept?
• Existing Fire departments will continue to be
maintained in both municipalities along with
both Firehalls and Fire Equipment.
• Amalgamation does not change the
importance of maintaining this department,
the number of firefighters or the fire
equipment.
How will the next municipal election
be handled?
• The next general municipal election will be
held on October 22, 2014. On that date, the
Council of the newly amalgamated
municipality will be elected. However, they do
not take office until January 1, 2015.
• The term of office for the existing Councils of
the RM of Glenella and RM of Lansdowne will
be extended to December 31, 2014
• Between the date of the election and December
31, 2014, the existing Councils have
administrative authority only and may not make
any decisions that bind the new amalgamated
Council.
• On January 1, 2015, the newly amalgamated
municipality is in effect and begin to operate at
the start of the municipality’s fiscal year.
• The elected Council of the newly amalgamated
municipality will take office on January 1, 2015.
Questions?
Further information
• A copy of this presentation will be added to
the municipal website www.glenella.ca
tomorrow.
• A copy of the final amalgamation plan will be
added to the website when it is submitted to
the Province.
• Additional questions may be emailed to the
municipal office at [email protected]

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