Recommendation

The recommendation is that Shelburne remain a town and aggressively pursue an economic development plan. The full report is available on the Town website.
(Unfortunately the report won't upload to this site)

Shelburne Public Communication and Consultation Summary

Purpose

The purpose of public communication and consultation regarding the Shelburne Service and Governance Review was:

• to build awareness of issues and opportunities facing the Town of Shelburne
  
• to give the public the opportunity to voice their opinions and hear opinions of others
  
• to provide Council with an avenue to hear directly from those who wished to be heard
  

Tools

The tools used to build awareness were two community newsletters and a project blog. Council members also made a point of talking to residents and businesses during this time frame to build awareness of the project and of project input opportunities.

The avenues for public input were the blog, a project hard copy address, a project email address, distribution of Councilor and Mayor contact information, a public workshop and a public drop in. A media interview was held as well.


Results

Public Workshop

The public workshop was well attended, with approximately 55 people participating in the evening event and engaging in lively discussion. This was an opportunity to hear about the project first hand and for people to hear from one another about their preferences and concerns.

The following comments provide a flavor of the feedback received:

• The newsletters appeared to many readers (not all) to be slanted in favor of amalgamation.
  
• Some people found it difficult to enter into a discussion about the topic of amalgamation without more concrete information about what taxes and services would be if amalgamation were to take place. There was discussion about the cost of such analysis and that final information about taxes and services wouldn't be available until negotiations with the amalgamating partner were complete and the Utility and Review Board or a Private Member's Bill enacted the change.
  
• People wanted to know if they would have more chances to participate if the amalgamation option were seriously pursued and they were assured that they would.
  
• There was a feeling by some participants that Shelburne has tremendous potential, especially as a center to attract 'new economy' businesses (i.e. internet based business, businesses that can locate anywhere and are looking for a quality of life location).
  
• While some people are concerned about representation in the amalgamation scenario, most of the concern expressed at the meeting was about services (maintaining them) and costs (keeping them down and keeping commercial rates competitive).
  
• People understood that the dropping population is a serious threat to the Town's sustainability and that it is a tough issue to address.
  
• People understand that MDS is in a similar situation and they wonder if there are any benefits to joining with them – could shared services attain similar results to amalgamation?

Drop In Results

Only one person attended the drop in. This person had moved to Shelburne for the great life style available at an affordable cost and brought their business with them. There was discussion about Shelburne's potential to attract more people and businesses looking for a great location at an affordable price.


Blog Results

Eleven people provided comments on the blog. Four didn't comply with the blog comments summary. Several were in favor of amalgamation.



Project Email Address

Although the email address went out in both newsletters only one person sent an email about the project. She was in favor of amalgamation and agreed to have her note posted to the blog.


Conclusion

Although there were many opportunities for people to participate, the public workshop was the avenue that garnered the most interest and input. The theme was that people are concerned about the ability to maintain services and manage costs and that economic development is critically important regardless of the governance structure.

Pictures of the public meeting from

 Bernard A. Nickerson

Mayor Delaney with RAMP Up (Carol Macomber)

Warden Emberly

Shelburne Questions and Answers Resulting from the Public Meeting

Hi All - Please note we've received questions as a follow up from the public meeting and organized answers here. If comments were received that didn't fit with the questions I posted them as a comment below.

 

Q (comment) - Additional information and calculations are needed in order to fairly judge advantages and disadvantages of amalgamation.

 

A – This is very true. The information to date is based on specific assumptions for the purpose of considering whether or not amalgamation is an option worth exploring. Decisions by Council at this point do not commit the Town to anything other than to possibly look into some options further. Should the Town decide to explore this option, a great deal of analysis would be required by the Town cooperatively with any municipality considering amalgamation with the Town in order to make informed decisions.

 

Q – Would Shelburne have to become a Village within a larger municipality if amalgamation happened?

 

A – No. If a Town amalgamates with a municipality it does not automatically become a Village. For example, Liverpool isn't a Village within the Region of Queens.

 

Q – If Shelburne amalgamated and then became a Village, who says what additional services would be provided and how would the area rate taxes be set?

 

A – If the Town amalgamated with the municipality and residents and businesses wanted services that are not provided by the municipality they could:

• create and elect a Village Commission (VC) (requires Utility And Review Board approval);
  
• VC would consider which additional services residents want and how to deliver those services;
  
• VC would determine how much revenue is needed to cover the cost of the services residents want;
  
• VC would set an area rate to be charged to all residential and commercial assessment in the (former) town to pay for the service.
  
• Residents and business would pay this additional area rate on top of their municipal tax bill.
  
• 
  
  Based on 2010/11 assessment values each $100,000 of Village service cost would cost approximately $200 a year for every $150,000 in assessment.
  
  
  
  

Q- What extra services would be covered?


 

A - Services could include snowplowing, sidewalk construction, recreation and most of the services that a town can provide with the exception of economic development services separate from the municipality.

 

Q - Will a similar projected decline in municipality-wide population create the same financial dynamic in the municipality that we are facing in the Town within a few years?

 

A - Based on population projections prepared by Stantec Consulting as part of Shelburne's Integrated Sustainability Plan, it is expected that MDS will experience a population decline similar to that of the Town of Shelburne. The population of the District Municipality is forecast to decrease by 25.7% between 2006 and 2026 (7,345 to 5,845). The Town of Shelburne's population is projected to decrease by 28.9% for the same time period, decreasing from 1,875 in 2006 to 1,455 in 2026. Assuming the population decreases as forecast and municipal costs increase by 3% a year, MDS would face the same financial dynamic as the Town of Shelburne (increasing per capita municipal expenditures).

 

Q – What is the difference between the residential / commercial tax ratios in the Town versus the Municipality?

 

A - The difference between the commercial tax rate and the residential tax rate in a municipality is determined by the 'multiplier'. The 'multiplier' sets the amount by which the commercial tax rate will be higher than the residential rate.

 

In 2009/10 the multiplier in the Town of Shelburne was 1.87 – or the commercial tax rate was 1.87 times the residential rate. (Res rate $2.04 times 1.87 = $3.81 Comm rate). In 2009/10 the multiplier in the Municipality of the District of Shelburne was 1.4 – or the commercial tax rate was 1.4 times the residential rate. (Res rate $1.30 times 1.4 = $1.82 Comm rate).

 

Q – Can the Town residential to business tax ratio (the multiplier) be reviewed and a lower ratio applied to lower business taxes in Town similar to the Municipality?

 

A- Yes – Council sets the multiplier every year and can lower or raise the commercial tax rate compared to the residential rate. However, because each dollar of commercial assessment in Shelburne raises 1.87 times what each dollar of residential assessment generates, dropping the commercial multiplier will impact residential taxes. Also, while the higher multiplier in Shelburne (1.87 versus 1.4) does create higher commercial tax rates than in the MDS, the difference between the residential tax rates in the town and the MDS is even greater ($2.04 versus $1.30). An example below shows the relative impact of replacing the commercial multiplier in the Town with the MDS multiplier.

 

Existing rates and multipliers:

                                    Town        MDS

Residential rate                            $2.04        $1.30

Commerical Multiplier                    1.87 times    1.40 times

Commercial rate                            $3.81        $1.82

 

Town Commercial rate using MDS multiplier in Shelburne        $2.86

 

The Town residential tax rate is 57% higher than the residential rate in the MDS. The Town commercial tax multiplier is 34% higher than the commercial multiplier in the MDS. While the multiplier is one piece of the amount of taxes paid by businesses the far greater impact relates to the fact that Shelburne as a town has far greater responsibilities than does a rural municipality like the MDS.

 

In 2008 the average total expenditure per dwelling unit for towns was $3,450. The average total expenditures per dwelling unit for rural municipalities were less than half that of towns at $1,724. The total expenditures per dwelling unit in Shelburne was only 89% higher than in the MDS but this difference translates directly into tax rates and is the primary difference between the rates in the two municipalities. It comes down to a difference in responsibilities – Towns are responsible for more than rural municipalities and taxes are higher as a result.

 

Q – Commercial tax rates are higher than residential tax rates, effectively subsidizing the residential tax rates. Could this 'subsidizing' be reversed in part to decrease commercial taxes?

 

A- Yes but only partly and there would be an impact on residential taxes - See answer to previous question.

 

Q – How much more would residents have to pay each year to realize a commercial tax reduction within the Town?

 

A - Using the same example above: Replacing the 1.87 times multiplier in the Town with the 1.4 times multiplier in the MDS would result in the commercial tax rate in the Town dropping from $3.81 to $2.86. For every $100,000 in commercial assessment taxes would drop approximately $950 per year. To recover the lost revenue from residential taxpayers, the residential rate would increase from $2.04 to $2.33 and the taxes for a $150,000 property would increase by approximately $435 per year.

 

Q - What are the population figures when second-home-owners and summer residents are factored in? This is a wealthy segment of population, but it wasn't included in the population/census figures used by the analysts.

A - Information on second-home owners and summer residents is not readily available and would require significant effort to gather. The population figures presented to the community were based on Statistics Canada Census data which is the most accurate data available regarding permanent community residents.

 

Public Meeting

We've received some good questions about information presented during the public meeting and we're working on writing answers.
Here are some pictures from the meeting.

Reminder - Public Workshop and Open House

The Town is providing many opportunities for citizens and businesses to get involved and stay informed:

1. Email or call town hall and / or elected representatives (see contact information)

2. Attend the public meeting on Tues., June 8, 6:30 pm to 8:30 pm at the Community Center / Fire Hall - A call to 875-2991 would be appreciated if you plan to attend the June 8 meeting

3. Attend the Open House / Drop In on Wednesday, June 9, 10:00 am to 12:00 pm (noon) at the Community Center / Fire Hall

4. Attend the recommendation to Council, Wed., June 23, 6:30, Community Center / Fire Hall

The Amalgamation Option

Overview

Shelburne may wish to consider amalgamation with another municipality as a way to manage costs and share resources. For the purposes of analyzing potential benefits, a comparison was done with the Municipal District of Shelburne (MDS), for service levels, costs and tax burden.

What could happen to the Tax Burden?

Commercial Tax Burden (see assumptions) in the Town could go down under the amalgamation option - a significant economic development consideration (residential would remain similar to now with potential for a small decrease) .

  What Could Happen to Town Service Levels and Costs?
 

Assumptions for Purpose of Analysis:
1. 2010/11 assessments and 2009/10 rates
2. Tax burden examples-residential assessment $57,000; commercial $100,000
3. Service delivery levels as above
4.No debt at amalgamation
5. Municipal District of Shelburne tax structure remains same
6. Town roads will qualify for PNS J class road service and existing charge per kilometre
7. Option A - gap between revenue generated by town assessments under MDS rates and town services to be paid by all taxpayers (Town and MDS)
8. Option B - gap between revenue generated by town assessments under MDS rates and town services to be eliminated through negotiations to service and other assistance.
 

The Bad News

The bad news is that there is some urgency to take action:

• The population is declining at a significant rate
• Population and assessment are linked - as population declines assessment will follow
• Current conditions aren’t sustainable
• Slow steady decline will increase rapidly to an unrecoverable point
• Residents will lose the value in their homes and attracting residents and business will be next to impossible

The Good News

There are opportunities and Shelburne has the ability to get in the drivers seat and create the conditions for future success, rather than just accept what is happening today.
Opportunities include: 

• There is an inheritance - a foundation of financial stability to use as a base for the future i.e., high residential assessments per dwelling unit 

• Town Council is taking action 

• With a new Council and motivated staff the Town is positioned to mold their future 

• There is mutual interest in exploring partnerships/amalgamation with neighbours to create win / win solutions. 

The things that need to improve are mostly within the control of the Town.

Service Review - Benchmark Towns

To help understand the current ‘health’ of the town, it is beneficial to see how Shelburne compares to similar size towns in Nova Scotia. We’ve called these the benchmark towns. The benchmark towns are: Berwick, Digby, Middleton and Stewiacke.
Shelburne compares well to the benchmark towns, being fairly middle of the road for most service levels and costs. Research did identify that Shelburne has the highest recreation cost of any of the bench-mark communities.
Of concern is that although Shelburne’s dropping population is the biggest risk to the Town, Shelburne has no planning and development service and compared to the benchmark towns, is the only town without an economic development function. This situation needs to be addressed.

If the population continues to drop as projected, per capita costs for town services will double in the next 10 years:

Letter From the Mayor

Shelburne is at a crossroads. We face some significant challenges, but we are fortunate that we also have opportunities. These challenges and opportunities are described in the blog. We are in the drivers seat but we must act now before our opportunities are lost.

This is why Town Council needs to hear from you, the citizens and businesses of Shelburne to tell us what you want and where you would like us to direct our future.

Please read this blog, attend the Public Meeting or Drop In (see tab above), and provide your feedback.

All the best,

Mayor Al Delaney

Project Description

The project will proceed in two, related pieces:

1. An operational review to examine finances as well as efficient and effective service delivery
2. A municipal governance review (what form of municipal government is best for the Town of Shelburne)

Operational Review

The operational review will document the services and finances in Shelburne, provide some comparisons to other municipalities, and identify the implications and risks associated with continuing on the current path.
This review will also provide a bench mark for testing potential solutions and monitoring future progress.
The operational review will develop an under-standing of issues and needs related to such services as police, fire, economic development, water, land use planning, etc.

Municipal Government Review

Shelburne Council wishes to examine and understand, with their community, how town services and taxes would be affected under various municipal government scenarios such as:
· Maintaining Shelburne as a town
· Amalgamation
· Amalgamation and becoming a Village or developing a Community Committee

Examining services and Town government alternatives (governance) will be done with the community. Some of the questions the community needs to consider are:
· What services and service levels are needed?
· Can we afford them?
· How will each governance alternative affect Shelburne’s ability to implement the community’s Vision?
· What criteria should be used to evaluate the governance alternatives?

Please stay tuned and participate, to bring the best solution forward.

Questions and Answers

1. What does amalgamation mean?

This means to combine two or more municipal units and Councils into one unit with one Council

2. Would we lose our identity as Shelburne?

No, Shelburne would continue to exist as a community, in the same way that Liverpool exists within Queens.

3. Are there options for us to maintain specific representation and /or tailored services for Shelburne, within the amalgamation option?

Yes, a Village is created within a municipality for the purpose of furnishing higher levels of mu-nicipal services to a more populated area of a rural municipality. For example New Minas is a Village and part of the Municipality of Kings. Councils may also create Community Committees to advise them on appropriate service levels for an area.

4. How does amalgamation occur?

The Utility and Review Board studies the municipalities and decides how costs are allocated within a new amalgamation, or the two municipalities negotiate an agreement that is passed as a Private Members Bill.

5. Would amalgamating save money and keep taxes down?

We don’t know yet. That is part of what the current project is designed to tell us. While we won’t be able to give specific answers to the taxation question (see question # 4), we should be able to determine whether savings are feasible. note: from newsletter 1; see newer posts

Issues and Options Summary

Why do we need to look at our options?

Shelburne is at a cross roads. The following issues need to be addressed: 

• Declining population - 13.5% drop from 1996 to 2006 

• Eroding tax base and decreasing financial reserves 

• Increasing service costs

What are our options?

There are options which may help address these issues, for example: 

• Amalgamation with a rural municipality 

• Remaining a Town and raising taxes and / or cutting services 

• Sharing more services with other municipalities may help as well

Note: Community Economic Development should be part of whatever solution is developed. This study is looking at shorter term financial and governance issues.

Letter From the Mayor

Shelburne Town Council became aware through their first budget year that the current town services and tax levels aren’t sustainable. A declining population and increasing service costs mean that the town can’t continue as is. We’ve agreed, as a Council, that we’ll provide the leadership to develop solutions to our community’s long term viability during our four year term.

Town reserves have been used and budgets cut in an effort to keep taxes down. While we’ll look for efficiencies, the time has come when bolder steps are needed. Current service levels can’t be maintained within existing tax levels and there are few buffers or reserves for emergencies.

Opportunities for input and for providing feedback are outlined to the right. I look forward to working with you as we make important decisions about how to realize our Vision (sidebar) within the means we have available.

All the best,

Mayor Al Delaney