Tuesday, October 13, 2009

Municipal Finance 101

The Aggregate Resources Act O-Reg 244/97 provides that every municipality gets a % of revenue based on tonnage of aggregate removed from the municipality.

Melancthon has tonnes of aggregate being hauled from various pits, the largest being Strada and Nelse Arnold every year and the TOTAL amount that Melancthon received in 2008 was $73,450.28.

Apparently that was a bumper year because, of course, of all the gravel being hauled for Phase II of the windturbines. Normally it isn’t that much.

To me that seems like an awful lot of trucks on the roads for $73,450.28 per year, in a bumper year. That is not the fault of Melancthon Council of course, it is another flawed aggregate policy of the government.

I do not know, but I would doubt that $73,450.28 would pave very many kilometres of road. (Does anyone know what it costs to pave a kilometre of road?)

But wait, that figure is ringing a bell. Oh yeah! That is just exactly $6,534.11 more than what Council paid the municipal planner, Jerry Jorden in 2008. And Council never felt it necessary that he actually had to set foot in the office.

Thank god for gravel or Melancthon Township would not be able to afford a municipal planner.

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