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Serving the Mapleton Community
Community News Volume 47 Issue 27
Drayton, Ontario
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638-3328
Friday, July 4, 2014
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Mapleton becomes OMERS employer
Nice rig - Larry and Marilyn Shantz of Alma, pictured in front of Larry’s 2007 Western Star, were among those with vehicles on display at the Clifford Antique/Classic Truck Show on the June 27 to 29 weekend. photo by Patrick Raftis
by Patrick Raftis MAPLETON - Township employees will be eligible to join the Ontario Municipal Retirement System (OMERS) on Aug. 1. Council approved a recommendation and passed a bylaw making the township an OMERS employer at its June 24 meeting. The move follows well over a year of investigation of the pros and cons of joining the pension plan utilized by nearly every municipality in the province. A bylaw authorizing the move was passed at the meeting. “As council is aware, employee attraction and retention has been a concern for some time, which can primarily be attributed to the lack of participation in the Ontario Municipal Employees Retirement Savings Plan,” stated CAO Patty Sinnamon in a report to council. Representatives from OMERS will be meeting with eligible township employees to review the plan and employees will decide individually whether they wish to opt in. Should an employee opt out of the plan, they retain the right to join at a later date. However, if they decide to opt in, they must remain in the plan as long
as the township employs them. The opt-out provision is in place to protect existing long-term employees, who Sinnamon said are better off not to join OMERS if they plan to retire within 26 months. The employee and employer match contributions to the plan. Current OMERS contribution rates are 9 per cent for those making up to the Canada Pension Plan (CPP) maximum of $52,500 and 14.6% for those beyond the CPP maximum. Currently township employees contribute to matched, selfdirected RRSPs and the contribution rate is 5%. This practice will continue for opted-out employees, but the contribution rate will be bumped to 9%. Councillor Jim Curry asked if employees could chose to stay at the 5% contribution rate. “It would be at nine across the board,” explained Sinnamon. “I’m looking at our mature employees. They’re going to take home less,” said councillor Neil Driscoll. Councillor Andy Knetsch said the switch to OMERS is unavoidable. “I think in this current term of office where we’ve had staff members leave for whatever
reasons, one of those reasons has been because of OMERS … there’s no way of getting around it,” said Knetsch. The cost to the township for the RRSP contributions, based on the 2014 salary grid at a 5% contribution rate would be approximately $71,932 and is included in the 2014 operating budget. The cost to Mapleton, should all eligible employees join the OMERS plan would be approximately $151,450. However, said Sinnamon, “It is highly unlikely that all employees will join the plan given individual ages and retirement plans.” Sinnamon noted a line item was added to the township’s 2014 administration budget to add $50,000 to help offset the cost of OMERS. As the township will be joining OMERS part way through the year, the increased cost will be pro-rated to the remaining five months and are fully funded within the 2014 budget. Sinnamon noted the mayor and councillors have not been included in the plan at this point. “Given that there is less than five months until the municipal election, I would suggest that this decision be left to the new council,” she stated.
Mapleton representatives split votes on county hospital funding by Meagan Leonard WELLINGTON CTY. – County council has approved a funding request of $9.4 million to be divided between three area hospitals. After a lengthy deliberation at the June 26 meeting, the motion was passed by a 10-4 vote. The funding includes $5 million for construction of the new Groves Hospital in Aboyne, and $4.4 million to be split between Louise Marshall Hospital in Mount Forest and Palmerston and District Hospital for upgrades to emergency rooms and renovations
to house pharmaceutical dispensing units. The majority of opposition came from Erin Mayor Lou Maieron, who has maintained throughout the funding deliberations that citizens in southern Wellington would see no benefit from the projects and their tax dollars would be betterspent improving infrastructure in Erin. Councillor Ken Chapman also expressed concern that hastily committing to such a sizable donation would become a financial burden to the incoming council this fall following the municipal election.
Maieron reiterated that sentiment, stating more information is needed and the policy concerning hospital funding reviewed before moving forward. “Without a policy and without a way to fund it, it’s premature,” Maieron said. “It doesn’t seem like the hospitals are without funds to get started. Without information it’s only fair not to encumber the next council.” A motion to defer the decision was defeated. Wellington North Mayor Ray Tout rejected the idea that hospitals only service those
who live in the immediate vicinity. “There’s nobody in this room that hasn’t been touched by poor health ... and hasn’t ended up in London or Hamilton,” he said. “They need to be for transients as well as locals.” Mapleton Mayor Bruce Whale said he was concerned that small town hospitals wouldn’t survive long-term, and therefore money spent servicing them would be counterproductive. “Some pieces are missing from this puzzle,” Whale said. “What is the role going to be
for small town hospitals in the health care system? Are we putting money into something that isn’t going to survive long term? Are we going to be able to attract doctors?” In an interview with the Community News, Whale said he is also concerned about shifting responsibilities between levels of government. “I’m still really concerned that at a municipal level we’re starting to take over some responsibilities that are really supposed to be provincial and I think we have enough infrastructure and services we provide - that we have to provide
- that I think that this is one that if at all possible we should stay out of health care,” Whale said. “They make arguments from the economic development side and I could buy into that to some extent, if someone could demonstrate to me what the hospital expectations are for businesses getting employees to move into our county. “Personally I think if you have a hospital within a half hour to three-quarter-hour drive that has multiple services, not just a bed where you might receive overnight care until they diagnose your real issue, Continued on page 3
Council defers decision on bridge work priorities for further discussion by Patrick Raftis MAPLETON - Council continues to struggle with decisions about which bridge and culvert repair projects should top the township’s priority list. At the June 24 meeting council deferred a decision on a staff recommendation that would have seen the township take on a $1 million debenture and tackle four bridge projects this year. The amount would also cover planned street light upgrades. CAO Patty Sinnamon
reported she and operations manager Les Robinson had met, as directed by council, with a representative from Reeves Construction to review the condition of various bridges and culverts identified in the township’s Bridge Assessment Report as requiring work within the next one to five years. The idea was to determine whether some of the work should be done this year. Four bridges were identified as priorities for repair in 2014, with a total cost of work
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estimated at around $576,000. Sinnamon said the work could either be covered using funds drawn from bridge reserves or raised by debenture. “It would be staff’s recommendation to purchase a debenture in the amount of $1,000,000,” she reported. “This debenture would cover not only the 2014 bridge work, but the cost of the streetlight upgrades, which is estimated to be $240,000. Currently interest rates are quite low at approximately
2.82% for 10 years, with an annual repayment amount of $116,156. Any funds not used from the debenture would be applied to the 2015 bridge works.” Mayor Bruce Whale expressed concern about spending that much money based on one quote. The mayor said he hadn’t expected the construction company to provide quotes on the projects, just help identify which structures required immediate work. However councillor Neil
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Driscoll pointed out “council asked staff to get this back to us.” Sinnamon added, “It would be very difficult to bring someone else in now, because you have these prices.” Driscoll said, “If you’re Reeves Construction your price is now public.” “They don’t have to tender at the same price that’s shown,” replied Whale. Driscoll said companies spend “a lot of time and money” preparing quotes and
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the township invests staff time in such projects as well. “If I was these people I’d say ‘Well, when you get serious, come back to me,’” said Driscoll. “Really - on a job like this I’m not sure we want to be going outside our procurement policy,” the mayor replied. Whale said he would much rather have a five-year plan for bridge projects than make decisions on an annual basis, to allow for better long-term Continued on page 3
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