The Public Debt Trap hits McNab/Braeside

My first political action was in 1983. Frustrated with the debt that the federal government had taking on over the previous decade that I would have to pay off over my lifetime,

source: https://www.fraserinstitute.org/commentary/really-quick-history-canadas-federal-debt

I campaigned for Brian Mulroney as Progressive Conservative leader. It appeared to me at the time that it would be best to have a Prime Minister from the private sector to gain control of the public debt burden. That didn’t work out very well. When my eldest got their first paycheque in 1996, the realities of this spiral of debt hit me hard – where short term political gain won over any concern about burdening future generations. Fast forward to 2023 and here I was staring at a recommendation from staff that we take on more unjustified debt at the Township in the amount of over $4 million ($4,669,297.34) or almost $1500 per household, that my children and those who I coached in soccer, hockey, tennis and baseball will still be paying off when I am in my 90’s. 

Here are some of the other issues:

1) The original 2021 financial statements were a misrepresentation of the financial position of the Township by $3.2 million at least (almost $1000 per household) with more questions still unanswered.

2) The Township’s reserve schedule, which is supposed to be in cash, is still short millions of cash.  

3) Overall salaries, wages and benefits increased by one million dollars from 2018 to 2023 (from $1.9 million to $2.9 million), with the only additional service to taxpayers being indoor recreational programming.

4) The Township Hall, originally estimated to be $384 per square foot, ended up costing $675 per square foot pre-Covid (7850 square feet @ $5.3 million as per above chart) and is still not finished.

5) In order to maintain Township roads at their current level on the Pavement Condition Index, there will have to be up to a 23% increase in municipal property taxation as per a report from Streetscan in September 2023. 

How and why is this happening?

That will take a while to explain fully and will be covered more in other coming blogs. A clever strategy for keeping these concerns obscured from being noticed is by drawing your attention to a very sophisticated, albeit false narrative that it is your mayor’s behavior that is the problem in the Township. I am a problem for sure to those who don't want you to see what is really going on. It is extremely inconvenient for me to be asking the questions that I should be on your behalf. They must continue to shoot the messenger in their efforts to muzzle my attempts to bring these serious financial and governance concerns to your attention. Abuse of the ‘Integrity’ Commissioner system is a key tactic being implemented. 

All indications are that a broader network of lawyers, accountants, public servants at the Provincial level, and other professionals -- who are paid with your tax dollars -- each play a role in protecting this abuse of the public trust. Confidence in government at all levels is probably at an all-time low here in January of 2025, and clearly with good reason. 

There is a connection between the alarming financial bombshell in the Town of Renfrew (note, this is a different jurisdiction than the County of Renfrew), the questionable financial practices of Renfrew Victoria Hospital and its subsidiary Renfrew Health, and our own Township of McNab/Braeside. Added to these concerns is that The Renfrew County Joint Transportation Consortium hasn’t adequately answered questions about their financial reporting. There is more than meets the eye about the bussing disruption in 2024 that was so stressful for many families. Multiple jurisdictions across Eastern Ontario (and beyond of course) are seeing similar financial irregularities. 

There are, fortunately, many municipal jurisdictions governed and managed prudently, including the County of Renfrew where about 30% of your property tax dollars go.

But why so many cases of financial mismanagement of public monies?  

Irregularities on this scale can only be accomplished by a broader network, rooted in the Provincial bureaucracy, which can prey upon vulnerable municipalities, hospitals, school boards, and other public entities by recruiting cooperative and strategically placed agents. A Council may change but the underlying bureaucratic infrastructure and broader network remain largely intact. 

If there is money being siphoned out from public accounts, how is that being done and where does it go? I don’t have the specific answers to these questions which is why I made a motion of April 30th, 2024, calling for an independent third-party audit as a first step.  This motion was defeated by your current McNab/Braeside Council by a vote of 3-2. There are multiple issues with statements made in that meeting. The auditor never took responsibility and ‘apologized’ for this ‘mistake’ of double counting $3.2 million. That would mean that they are taking responsibility for our books and that is against any basic principles of auditing.

Details to follow.  I invite you to subscribe and share. I appreciate any interest, questions or feedback. 

Mark MacKenzie

January 2025