By Michael Gorman
THE VANGUARD
NovaNewsNow.com
So much for the Town of Yarmouth’s surplus.
When Yarmouth town council passed its budget in May, much was made of the razor thin surplus — less than $8,000 — and how belts would have to be tightened at town hall.
Now, due to a difference of interpretation with the province’s Department of Community Services, council is going to have to potentially find almost $100,000.
The issue is the result of the charges for the town’s contribution towards public housing. The town received a bill from the province for $202,027. The problem is the town only budgeted for half of that.
Mayor Phil Mooney said the town, as well as other municipal units in the province, was under the impression that this was the year that a gradual phasing out of the municipal contribution for public housing was to begin. The phasing out, which is to span over two years beginning with a 50-per cent reduction, was to start with the 2010-11 fiscal year.
A memorandum of understanding signed by the province and the Union of Nova Scotia Municipalities in 2007 reads in part: “the province (will) phase out required municipal contributions to public housing over a two year period, beginning in 2010-2011
But government officials say the 2010-11 bill hasn’t been issued yet and so the phasing out won’t begin until next year. Instead, they say the bill sent to municipal units is for the 2009-10 fiscal year and is therefore not part of the phasing-out process.
“The way all the other phase (outs) worked, it would be (for) the year (the province said) that it started,” said the mayor when asked about the discrepancy.
“Community Services said ‘no, we didn’t calculate it that way. The phase-in is going to start next year, next fiscal year.’”
Kristen Tynes, acting director of communications for the Department of Community Services, said the bill from the province is based on actual numbers, so there is no way to issue a bill in advance of final calculations.
“You can’t give someone a bill before we have the numbers,” she said. “It’s based on actual cost.”
Tynes said the next bill the town receives would reflect the beginning of the phase out.
This is where the difference of interpretation comes in, with some municipal units — including the Town of Yarmouth and Halifax Regional Municipality — assuming a phase in set to begin in 2010-11, as it states in the MOU, would be reflected during that year.
It means the town and other municipal units will have to come up with money they didn’t anticipate needing and therefore didn’t include in their budgets.
“We were of the understanding that it was going to be this fiscal year,” said Mooney. “If it stays status quo we’re going to have to find, probably, . . . $94,000 somewhere else in the budget or make it up for next year.”
Mooney said the town has sent letters to the UNSM hoping they can get help on the matter and possibly sway the province to change its position.
“The Union of Nova Scotia Municipalities is going to be making a presentation to the government (saying) that they should have honored their commitment to start this year.”
Mooney was uncertain of when the presentation would take place.
