Huntsville - Lake of Bays Lakes Council

District debt is currently at almost $107 million. How to deal with this is a very important issue for all rural, including waterfront, property owners. The Commissioner of Finance and Corporate Services, Stephen Cairns, presented his recommendations in his July 4^th document, Debt Reduction Initiative. (If you wish a bit of insight into the recommendations being considered, please see our website: www.huntsvillelakescouncil.org., its on the opening page The full set of recommendation or a summary, Snap Shot of Debt Reduction Report, can be accessed on District's website: www.muskoka.on.ca/siteengine/activepage.asp?PageID=5)

District's Strategic Priorities document contains the suggestion that council "investigate a non-urban tax levy contribution to water and sewer costs" in an effort to bring down this debt. The Huntsville Lakes Council feels that a non-urban tax levy is not an acceptable way to reduce the debt. Although this suggestion is not, directly, one of Mr. Cairns' recommendations, these do contain other suggestions for the use of rural funds to cover some urban services.

The Huntsville Lakes Council agreed to what it feels is a reasonable response to these particular recommendations. Since it is always helpful in a democracy to let the politicians know where their voters stand, the following letter sets these out in point form. The letter is meant to be used in whole or you may just wish to pick out the points about which you feel strongly. You may wish to add your own thoughts. Your comments should be either e-mailed or sent by post to your mayor and District councillors.

Huntsville: Lake of Bays Township

Claude Doughty (mayor@huntsville.ca) Janet Peake (janetpeake@hotmail.com)

Fran Coleman (ron.coleman2@sympatico.ca) Ben Boivin (benboivin@vianet.ca)

Brian Thompson (hawk19@vianet.ca) Margaret Casey

George Young (young@surenet.net) (margaret.casey@sympatico.ca)

Town Hall Township of Lake of Bays

37 Main Street East 1012 Dwight Beach Rd.

Huntsville, ON P1H 1A1 Dwight, ON P0A 1H0

If you wish to hear more opinion on the recommendations, there is a public meeting of District's Committee of the Whole set for Friday August 15^th in the Auditorium at the Bracebridge Sportsplex, 110 Clearbrook Trail, Bracebridge, beginning at 9:00 a.m. The agenda will be available closer to the meeting date on District's website www.muskoka.on.ca under Hot Topics.

If you wish to appear as a delegation at this meeting, you must advise the District Clerk at least 48 hours before the meeting by mail, fax or e-mail as follows:

Christine Lees

District Clerk

The District Municipality of Muskoka

70 Pine Street

Bracebridge, ON P1L 1N3

Fax: 705-645-5319

mail: clees@muskoka.on.ca

Decisions on the steps to be taken to reduce the debt may be made at the September 2^nd meeting of District Council so letters should be in relatively soon.

Gord Adams, Chair August 2008

District of Muskoka

70 Pine Street

Bracebridge, ON P1L 1N3

e-mail: gadams@muskoka.on.ca

Dear Mr. Adams:

Re: Recommendations regarding reduction of District debt

and the transfer of funds from rural taxpayers

I understand that the recommendations presented to you by Stephen Cairns, dated July 4, 2008, include various measures in which monies will be used to pay down the debt. Although I support many of the recommendations put forward by Mr. Cairns, as a taxpayer in Muskoka, I have comments and concerns with respect to some.

* The projected debt level is of concern to all residents of Muskoka but it is still manageable.

* Rural, including waterfront, taxpayers already pay a disproportionate amount of total District taxes and this amount will undoubtedly become worse with the forthcoming reassessments. There is no justification in Mr. Cairns' Report for an additional levy on rural taxpayers to bail out the District.

* I support the well established principle of "user pay" and thus am not responsible for sewer and water debt. On the other hand, I am prepared to assume my responsibilities for sewage lagoon operating and capital costs.

* It appears that the set up of the budget will not allow us to easily see who is paying for what, essential in a user-pay agreement. It should clearly divide both contributions and expenditures for water and sewer from those related to lagoon service within the various funds, with this documentation published annually. The system must be transparent and available to us all.

* In principle I feel that any annual savings from the uploading of ODSP costs and Federal Gas Tax Funding should accrue to the benefit of all taxpayers as opposed to being applied solely to the Debt Reduction Reserve or to fund sewer projects. I am willing, in the short-term only, to use these funds for the specific purpose of decreasing the debt with documentation provided as noted just above.

* District needs to provide a cash flow forecast to show how long the debt reduction strategies will take to return District to debt stabilization and viable reserves. This needs to be updated and published at least annually and document capital expenditures, operating expenses and debt reduction assumptions.

* District Council must become more responsible and more vigilant in undertaking further capital expenditures and assuming further debt obligation.

* I support the remainder of the recommendations put forward by Mr. Cairns. These need to be implemented to be effective.

Sincerely,