Proudfooter Jim Skelton Can't Make Up His Mind

We warn you now that Mayor Tomlinson's sycophant Jim Skelton likes to run on and this email, apparently from out of the blue, to former Kearney mayor Jeff Johnston is no exception. At least this time he's not regaling us with lore about how his mom discovered America and dated Henry Hudson.

From: Jim Skelton

Sent: Friday, August 24, 2012 2:16 PM

To: Jeff Johnston

Cc: Ken Ball ; Barry Dingwall ; Arthur Murdy ; Steve Sainsbury ; Paul Tomlinson ; Louise Wadsworth ; Yvonne Wills

Subject: Operating Expenses, Reserves and Taxes in Kearney...

Good afternoon Jeff,

I trust this finds you in good spirits and good health.

As I believe you likely know there has been much talk recently regarding the Town’s Finances…

As a truly concerned citizen, as I know you to be, it seems that there has also been much confusion and in some cases blatant inaccuracies bantered about.

This is a wonderful community…a land for our grandchildren to raise their children and so on and so on…

Indeed a Community of Lake Communities…a Community like no other.

So it pains me just a bit when distorted facts are shelled out like peanuts from a street vendor…no thought to their damaging impact! 

Simply buyer beware!

Well that’s just not good enough for precious Kearney!

Every citizen has a responsibility in fact an obligation to ensure only factual and unbiased material is distributed to the unsuspecting Town’s folk.

So Jeff…let’s first talk about RESERVES.

            Reserves are perhaps best Defined as:

“Monies set aside from prior operating budgets to allow for the future Repair and/replacement of ‘critical’ Town Assets” [So NOT for fixing budget screw-ups as Tomlinson claims here? ...ed.]

How are Reserves acquired?

Simply from planned amounts set aside in operating budgets or the occasional ‘happy’ opportunity from an unplanned operating surplus.

In short they are built with taxpayer dollars…you could say ‘on the backs of the ratepayers’

So the next question becomes do we have enough, too little or too much?

            Think about this for a minute or two…

            Too little…problematic for future tax increases!

Too much…we’ve been gouging the tax payers!

Clearly a complex situation to get just right!

A constructive report prepared by the [now-defunct] PTPOA and presented as a Delegation to the previous council, when you were Mayor, had the following comments on the subject of ‘reserves’:

    The Town’s Financial Reserves are not rigorously controlled and/or protected.

There is evidence that reserves have been depleted and/or reassigned or transferred without full regard for the impacts on future budgets.  In so doing, on a short-term basis it amounts to “borrowing from Peter to pay Paul”, without due or any regard for when or how Paul will repay Peter.  During budget deliberations no review of reserves was undertaken save a ‘status’ report of the current position.  This does not appear to reflect sufficient diligence for proper planning. 

The reasons for the depletion or deterioration of reserves can be attributed to a number of related problems or pressures, not the least of which is the inappropriate release or reallocation of reserves to supplement or ‘shore up’ other unrelated current expenditures.

Conclusion:  Reserves and their administrative control is not subject at present to appropriate levels of consideration or review by the Town.  Left unchecked this situation will potentially leave the Town short of funds for future requirements.  The replenishment of needed reserves is not being addressed within the scope of annual budget planning. 

I suspect the above may have been long ago and has since overflowed the memory banks.

Pity more heed had not been given when it could have been…

Now back to TAXES…

Jeff you have been heard to state, when you were Mayor, that the property taxes in Kearney are the ‘lowest’ amongst surrounding municipalities…indeed you were hopelessly on record on numerous occasions stating just that fact.

Now it appears that you have switched to a different tune that goes something like this…”Kearney’s taxes are artificially being kept too low” (or words to that effect).

So which is it Jeff:

1.    Taxes were the lowest when you were Mayor? Or,

2.    Taxes are now artificially being kept too low?

Knowing you you’ll argue for both of the above…ah decision making; possibly not your long suit eh Jeff!

Well, let me help you out; and this is important for the future of Kearney…I did mention that that great ‘future’ is our common mutual goal didn’t I?

I know it sometimes gets lost in all the convoluted rhetoric and misinformation.

A thorough study and audit conducted a little over  a year ago had the following startling conclusions:

1.    Kearney’s taxes were not the lowest in 2008!  In fact they were $524,027 higher than necessary.

2.    Kearney’s taxes were not the lowest in 2009 either!  They were $686,675 higher than necessary [when Paul Tomlinson was Chair of the Budget Committee and Skelton was a member]

3.    And, in 2010 …you guessed it they were again a whopping $506,792 higher than necessary! [Based on the budget Skelton and Tomlinson's Budget Committee brought to council.]

Let’s not dwell on the patently obvious let’s just put it all down to inappropriate budgeting shall we?

But consider the ratepayers in the Town…did you ever tell them that you, as Mayor, authorized the over taxation of your citizens to the tune of $1,717,494? [Although Paul Tomlinson has publicly declared that the mayor is "just one voice"]

And, that was just in your last three years as Mayor.

If you string together a further amount of unnecessary or misspent funds we’d have to add another (140,00 + 70,000 + 45,000 + 25,000)…

In total just a tad shy of a cool $2M.

But just like in the movies each story has a bright side…

In this case if we loop the over taxation to the treatise on reserves we discover that in an ironic twist of fate you had already, albeit unwittingly, provided sufficient funds to allow $280,000 of reserves to assist in correcting the 2012 budget imbalance! [So, Mayor Johnston's foresight will allow the town to stay afloat despite Mayor Tomlinson's "budget imbalance"? What a jerk that Mayor Johnston was for putting extra funds into the Reserves!]

So all is well in The Biggest Little Town of K after all. [Apparently, thanks to Mayor Johnston.]

Oh yes and if you’d refrain from continually mixing apples with oranges as you discuss finance you will also observe that the Town’s Finances and Reserves are indeed sound.  Not to say that we don’t need to commission  a full and proper Reserve Study TO ENSURE WE DON’T OVER TAX OUR GOOD CITIZENS. [So now you're saying we need to commission a study because you think Paul Tomlinson screwed things up after all?]

But all in due course…hope the above helps you to better understand the complexities of municipal finance. [We've asked this before: You do know that Jeff Johnston isn't the mayor anymore, right Jim?]

Regards,

Jim

So, a nice rant from Skelton about how Jeff Johnston, while mayor of Kearney, "authorized the over taxation of your citizens", although Tomlinson and Skelton were on the Budget Committee in 2009 when taxes "were $686,675 higher than necessary", according to Skelton. 

Excerpt from the Council minutes of May 28, 2009:

Res. No. C-332-09 Mary Lesperance, Louise Wadsworth

BE IT RESOLVED that Council accepts the recommendation of the Financial Management Advisory Committee that Paul Tomlinson be congratulated and thanked for chairing and co-ordinating the Budget process for 2009 .

CARRIED   

But we can turn back the clock as well. On July 2nd, 2008, the Almaguin News reported that Jim Skelton, the now-defunct PTPOA (Proudfoot Township Property Owner's Association), and then-Councillor Paul Tomlinson demanded that Mayor Johnston INCREASE property taxes from 3.7% to 8.39% because they felt the former amount was too low and would require that the Town dip into reserves.

Click on image to enlarge

Sound familiar? 

Except, now that fellow Proudfooter Tomlinson is dropping taxes to the point that reserves won't just be dipped into but completely depleted, Skelton's reaction is to keep shaking his fist at former mayor Johnston, whose council helped build up the Reserves, again according to Skelton.

Jeff Johnston responded to Mr. Skelton, somewhat more adroitly (thank heaven), with:

Jim, thanks for your email. I have been away since August 7th and in my absence I believe many are raising increasing concerns regarding the town’s finances, including professional accountants.

I am not an expert nor a professional accountant but I do listen to those who are. Fundamentally the town does not have enough revenue to meet operational needs and are dipping into reserves at an alarming rate. So, if you feel things are being misstated, why not present your position to the Concerned Citizens. I am sure they would appreciate your expertise and would be willing to openly share it.

Best regards, Jeff

And share it we have! And maybe in four years we'll email Tomlinson a rambling diatribe accusing him of having "authorized the over taxation of your citizens", right before we go shopping for a new drool-bucket.