Councillors want province's help to escape huge conservation levy hike

At least two Hamilton councillors are calling on the province to intervene after the Niagara Peninsula Conservation Authority (NPCA) voted Thursday to take nearly $700,000 more per year from city taxpayers.

Coun. Sam Merullawill introduce a motion next week asking for a provincial review of the authority, its board and its accounting practices after the authority board approved an $686,504 increase in Hamilton's levy on Thursday. That takes Hamilton's portion from $513,473 to $1.2 million.

"This is unconscionable and should not be accepted by anyone, including the province," Merulla said.

His call is coupled with a "certain" appeal to the provincial Lands and Mines Commissioner, which Coun. Chad Collins of Ward 5 will move next week. The city has 28 days from Thursday to appeal.

This is unconscionable and should not be accepted by anyone, including the province.- Coun. Sam Merulla

Collins said he supports calling on the province for a review too.

"Id certainly welcome that," he said. "Even (CAO Carmen D'Angelo) raised an eyebrow with their past accounting practices.It makes sense."

NPCA has, by its own admission, had "casual management" practices in recent years, and saw a nearly wholesale overhaul of senior management last year because of it.

D'Angelo, Hamilton's former representative on the NPCA board, told councillors last month that there were some past issues with the NPCA's book keeping.

Among them: the city has paid $2.95 million in capital dollars to theNPCAsince 2006, he said, but the authority has no idea how much of that money actually went to Hamilton projects. And about $1.2 million of that wasshifted to the operating budget instead.

No new agreement reached

The levy increase, DAngelo said, comes because an informal agreement used with Hamilton since 2000 isnt valid under the Conservation Authorities Act.

• READ MORE: Niagara conservation authority cleans up management, but wants more money

Post-amalgamation, the NPCA levied Hamilton based on the portion of taxpayers in the Niagara watershed, as opposed to the percentage of land NPCA covers in the city.

There is no trust at this point.- Coun. Sam Merulla

While the agreement was renewed twice in the past 14 years, DAngelo told councillors last month that no one at NPCA canfind any evidence of a formal agreement.

To abide by the act, DAngelo said, Hamilton, Niagara Region and Haldimand County would all have to agree to keep the old system for another year, or establish a new agreement.

Haldimand County didnt do that when NPCA presented earlier this month. At a Niagara Region council meeting in late January, DAngelo presented two options to regional councillors, labeled as option A and option B. Option A was reaching a new agreement. Option B was going by the new system.

Niagara Region stands to save $282,824 per year by using the new apportionment, and chose option B. Regional council approved the 2015 NPCA budget Thursday night, hours after the NPCA board approved the budget.

'No trust'

Henry DAngela, a Thorold regional councillor, said on Thursday that he wanted to make sure Niagara residents werent paying too much again because of Hamiltons levy.

In a media release Friday, D'Angelocalled the 2015 budget a "correction year" for the organization.

"We did a line-by-line review of our revenue and expenditures and immediately noticed that previous budgets had not been adjusted to reflect the real financial situation of the organization," he said.

The authority lowered its operating expenses by 1.1 per cent in 2014, he said, but "based on improper forecasting, our expenditures were 9 per cent above the planned amount. This budget paints a more accurate picture of what it costs to run the organization."

Merulla said he's not sure what to believe anymore.

"They need a full operational review of their governance, their board and their management," he said. "There is no trust at this point. You cant have a lack of trust coupled with lack of competency, then to add insult to injury, you have this huge increase that no governing body could ever rationalize or justify."

Collins already put in a notice of motion about the appeal to the Lands and Mines Commissioner. The rare move is the only recourse the city has, and the commissioners decision is binding.

Councillors will vote on the appeal, as well as Merulla's call to the province, at a budget meeting next week.