Port Stanley Harbour Budget
Special Meeting - Monday, January 23, 2017
Call to Order
Disclosure of Pecuniary Interest and the General Nature Thereof - None reported.
Committee of the Whole - A Motion moved by Sally Martyn and seconded by Fiona
Roberts that Council proceed into the Committee of the Whole at 8:02 P.M. The Motion
1. 2017 Harbour Budget Discussions
The Port Stanley Harbour Budget discussions this year proved to be an emotional
struggle to balance spending principal funds still available from the Harbour Divestiture
Fund and the interest made from investments. With an unaudited $4,405,374 in principal,
and $1,156,848 in interest still remaining after all the work done on the Harbour
so far, a balanced approach to spending the right amount of principal and interest
money available must be found while following the spending guidelines of the Harbour
divestiture deal. Taking into consideration the recommendations from Riggs Engineering
on future dredging costs of $1.5 million in 2021, and 2028 in order to spend the
remaining money from the Harbour divestiture Fund. Harbour dredging is also scheduled
for 2038, and 2048. By 2038 we would need to have generated $1,000,000 to pay for
needed dredging. To date a total of $2,780,000 from investments has been earned on
the Harbour Divestiture money.
The Harbour divestiture deal involved a transfer contribution of $13.5 million,
"to be used exclusively to cover operational costs and maintain the port's infrastructure",
and 64.5 hectares land (of which 52.8 hectares are harbour bed), two breakwaters,
two piers and a building.
A statement from a Council meeting from April 22, 2010, then Deputy Mayor Marr said
the large chunk of money Central Elgin was getting was "enough dollars to do what
we need to do" and that they will be able to look after the harbour for 35 to 40
years if this large chunk of money is managed properly and he has confidence in
the municipality's excellent financial department and excellent auditors. He said
Central Elgin needs the earned interest along with the principal to make the deal
Dan McNeil commented on how the last harbour dredging followed Kettle Creek Conservation
Authority Hydraulic Capacity guidelines which is needed for development along the
Harbour, and thought that developers should be paying a share of the dredging costs.
Mr. Leitch said that he thought that dredging costs could not be added to development
fees because development fees are for capital works, and dredging costs are operational
Harold Winkworth commented that Council has not followed the original plan set out
in 2010, and that if Council had followed that plan would have had everything paid
for, and money left over to pay for any additional Harbour dredging costs into 2035.
We have spent over $11,000,000 and we have just completed year six with another
twenty-nine years to go. And someone has suggested that $5,500,000 dollars will
get us there. Once the Harbour Divestiture Fund has been exhausted, the people of
the municipality will then pay to maintain and develop the West Pier, and the Harbour.
That's everybody will be paying for this, and as far as I'm concerned, we have mismanaged
Dan McNeil commented that we have not done anything foolish, and by 2030 if we haven't
spent all the money, we have to pay back what's left. We have done excellent planning,
gotten great results taking advantage of lower construction costs during the downturn,
and got it all done.
Sally Martyn asked Lloyd Perrin if there was any other anticipated costs in the
fourteen years left with Harbour infrastructure beside dredging. Mr. Perrin replied
that he was not aware of any other costs beside West Pier lighting. Due to recent
conversations with Transport Canada about remediation work along the East Berm,
and the vision of the East Berm Walkway, a deal to combine the remediation work
and hard cap at the same time.
Mayor Marr commented that the Secondary Plan will give Council the road map as to
how were going to develop the West side, and the East side, all the Harbour lands.
Without the plan, we won't know what those revenues are. Mr. Leitch stated that
in the initial Mark Conway study the economic development strategy was to find
ways to sustain the Harbour by developing the Harbour lands for Residential and Commercial
Stephen Carr commented that the year 2030 is the year that the Harbour is all ours,
were free to sell part, all, or whatever. What were trying to do is provide a clean
area for development as the Mayor was saying, for residential High-rises', or whatever.
That's where the money is going to be turned back to the Municipality. 2030 is the
benchmark, were going to have people coming to us five years prior to that wanting
to develop, wanting to build on the West and East side. We are trying to give them
a clean slate, so that they can develop.
Dan McNeil commented on the reason why the Municipality could not sell any of the
Harbour lands because of the term "Windfall Profits", and that happens in 2030,
that's when we can sell and make one heck of a lot of money.
Sally Martyn commented that during the initial public meetings concerning what the
people wanted for the Harbour Lands, no one wanted a housing development on the
Berm, everyone wanted parkland. So before we do things with the Berm we should go
back to the public again.
The 2017 Capital Projects include the East Pier Walkway at a cost of $375,000, with
$160,000 given to the Municipality if the deal to combine remediation, and hard
cap can be reach. The East Pier Lighting at a cost of $275,000, the West Pier Lighting
at a cost of $395,000, the Hofhuis Park Lighting at a cost of $250,000, and the
Hofhuis Park redevelopment at a cost of $105,000, for a total of $1,400,000, or $1,240,000
with the $160,000 revenue from the deal with Transport Canada. After a lengthy
discussion, a motion was passed to include the 2017 Capital Projects resulting in
the principal of the Harbour Divestiture Fund dipping to below $3,500,000.
Adjournment - Meeting was adjourned at 9:53 P.M.