RM of Glenella Public Meeting Amalgamation November 7, 2013

What is amalgamation? Amalgamation is the dissolution of one or more business entities and the transfer of business of the dissolved entity to another entity. In this situation, it means the end of the RM of Glenella and the beginning of a newly amalgamated municipality.

Why discuss amalgamation? In November 2012, during the presentation of the throne speech, it was announced that all Municipalities with a population of under 1000 must submit an amalgamation plan with a neighboring municipality to the Province by December 1, In September 2013, Bill 33, The Municipal Modernization Act was passed.

Do we have a choice? No. The Province is using the census of 2011 as their base mark and 1000 population as the only determining factor in what makes a viable municipality. Municipalities were created by the Province and are therefore subject to their wishes. Bill 33 gives the Province the authority to force amalgamations on all municipalities under 1000 population.

Was the RM of Glenella not already a viable municipality? Yes. We have always fulfilled our municipal obligations. We have our audits completed in a timely fashion, we are fully PSAB compliant, we report to the Province on time, have not had any problems finding and maintaining qualified staff and have never had a problem filling Council positions during an election. We are not close to our borrowing capacity and do not carry unreasonable debt. The fact that we are under 1000 in population makes no difference to our operations, we have the same square miles to maintain that we have always had. It is extremely disappointing that the Province only uses the 1000 population as their base mark, there are many other issues that could be considered.

What are our choices of amalgamation partners? The Province has stated that our amalgamation partner must share a municipal boundary with us. The municipalities that we share boundaries with are RM of McCreary, RM of Alonsa, RM of Lakeview, RM of Westbourne, RM of Lansdowne and RM of Rosedale. The Province has also stated that the amalgamated municipality must have a population of at least 1000.

Which municipalities did we talk to? The RM of McCreary advised us that they were preparing an amalgamation plan with the Village of McCreary. The RM of Alonsa, RM of Rosedale and RM of Westbourne are all over the 1000 threshold and are therefore not required to submit an amalgamation plan. A letter was sent to The RM of Lakeview requesting a meeting, however they were not interested in meeting with us, and their municipality was too small to satisfy the combined 1000 population.

A letter was sent to the RM of Lansdowne to discuss amalgamation, and an initial joint meeting of both Councils was held June 20, A second joint meeting of both Councils was held November 1, Their municipality is very similar to the RM of Glenella. We are both farming communities and each have one Village. Both Councils felt an amalgamation plan could be done with minimal impact to their ratepayers.

Can we amalgamate with a different municipality? No. A letter was received on Tuesday, November 5, 2013 from the Province stating the RM of Glenella and the RM of Lansdowne will be amalgamation partners. Included in their letter was a draft amalgamation plan that stated if we did not provide an alternative plan the name of the newly amalgamated municipality would be “Municipality of Number Ten” Prior to receiving this letter, we were already in discussions with the RM of Lansdowne and have drafted an alternative plan to the one proposed by the Province.

What is the amalgamation plan? RM of Glenella POP 522 RM of Lansdowne POP 723 Combined population1245 The newly amalgamated municipality will be a rural municipality. The proposed name is Municipality of Glenella-Lansdowne.

Where will the Municipal Office be located? The Municipal Office for the newly amalgamated municipality will be in Glenella. A satellite office will be maintained in Arden. The Glenella Branch of the BPCU will have the bank account of the newly amalgamated municipality. Deposits made from the Arden office will be done in Neepawa and deposited into the Glenella Branch.

What is the Council Composition? The newly amalgamated municipality will have one Reeve (Head of Council) who will be elected at large. The newly amalgamated municipality will have six wards with one Councillor elected in each ward. Currently the RM of Glenella has 4 wards and the RM of Lansdowne has 5 wards so this will be an combined reduction of 3 councillors and 1 Reeve (4 members of Council)

What about the LUD of Glenella? The LUD of Glenella will be dissolved. Section 56 of the Municipal Act states that a local urban district may be formed if it has at least 250 residents and a population density of at least 400 residents per square kilometer. The LUD of Glenella does not meet these requirements as the current population is well below 250 residents.

How does amalgamation affect my assessment? Our Assessment Officer, Glen Bell, confirmed that the assessment of your property is based on the market value and sale prices of similar properties in your area. He does not expect that amalgamation with the RM of Lansdowne will have an effect on the assessment of your property.

What does dissolution of the LUD of Glenella mean to the Village? It means the operating budget that was prepared for the Village will be included in the overall budget of the municipality and all expenses and income will be at large instead of some urban and some rural. The Councillor of the Ward that the Village is in will be the representative of the Village on the newly amalgamated municipal Council. The newly amalgamated municipality will continue to grade/snowplow and gravel the streets, snowblow the sidewalks, mow the ditches and parks as is done now. Any additional drainage works including sidewalk repairs, culverts and ditching will be part of the overall operating budget and overseen by the newly amalgamated municipality.

Taxation and mill rates. Transitional measures will be used for municipal taxation and differential mill rates will be used for at least the first term of Council of the newly amalgamated municipality. This means that services that were provided and taxed in the municipality of Glenella will still be provided and taxed in the municipality of Glenella and vice versa.

How do the mill rates compare? Amalgamated RM RM At Large Glenella Lansdowne Assessments 46,714,950 15,318,480 31,396,470 Mill rates Projected Current Difference At Large Glenella Service Area Lansdowne Service Area Total Mill Rate – Glenella Total Mill Rate – Lansdowne *Figures based on 2013 budget and assessments

What about existing debt? Neither municipality is carrying much debt. Both municipalities have a debenture which relates to the building of the personal care home in Neepawa which was taken out at the same time and have the same years remaining. It was calculated on a per capita basis and does not change now that the two have amalgamated.

Both municipalities also have a debenture relating to an equipment purchase, the RM of Glenella purchased a backhoe, the RM of Lansdowne purchased a grader. These debts remain with the initial municipality. The RM of Lansdowne also has a debenture related to the water & sewer lines installed in the Village of Arden. This debenture is charged solely to the property owners who are in the Village of Arden as a local improvement tax, this will not change in amalgamation.

What about Reserve Funds? Reserve funds will be carried forward for the purpose that they were originally intended for. Equipment reserve funds will continue to be used for future equipment purchases. Fire dept reserve funds will continue to be used for future fire dept purchases. Building reserve fund will continue to be used for future building expenditures. The LUD reserve fund will remain and be used for future expenditures within the Village of Glenella

What happens to our Equipment? Each municipality currently has a municipal shop and equipment. Both existing shops will continue to be maintained in each municipality along with the current equipment. Amalgamation does not change the number of roads we have to maintain, or the equipment and staff required to do it.

What about the Fire Dept? Existing Fire departments will continue to be maintained in both municipalities along with both Firehalls and Fire Equipment. Amalgamation does not change the importance of maintaining this department, the number of firefighters or the fire equipment.

How will the next municipal election be handled? The next general municipal election will be held on October 22, On that date, the Council of the newly amalgamated municipality will be elected. However, they do not take office until January 1, The term of office for the existing Councils of the RM of Glenella and RM of Lansdowne will be extended to December 31, 2014

Between the date of the election and December 31, 2014, the existing Councils have administrative authority only and may not make any decisions that bind the new amalgamated Council. On January 1, 2015, the newly amalgamated municipality is in effect and begin to operate at the start of the municipality’s fiscal year. The elected Council of the newly amalgamated municipality will take office on January 1, 2015.

Questions?

Further information A copy of this presentation will be added to the municipal website tomorrow. A copy of the final amalgamation plan will be added to the website when it is submitted to the Province. Additional questions may be ed to the municipal office at