Salary Gate; The plot sickens

By Gerry Barker

October 21, 2016

When former Chief Administrative Officer (CAO), Ann Pappert, left the top city staff job last May, she walked away, after more than five years employed by the city with a gold plated pension. Her final months gave her 70 per cent of her estimated last five years at a salary rate exceeding $200,000 per year.

When she was promoted to the CAO’s job in 2011, she was making the same as retiring CAO Hans Loewig, $199,000 a year. By 2014, she was making $219,000. Then came the big bump up in pay that gave her a new salary of $257,591 for 2015 and part of 2016.

She wasn’t alone. Two of her three subordinates also received hefty increases ranging from 14 to 19 per cent.

The trouble was that the public was not aware or informed of council’s approval that December 10th in closed session.

Why would Mayor Guthrie and council go along with this? Why would the Mayor not inform the residents of Guelph of this major decision? Will we ever know the rationale of this approval or why these increases were warranted?

These three top managers of the city staff, numbering more than 2,000 employees, were awarded these increases totaling $98,000 in a closed meeting held either before or after the second day of the open public meeting to create the 2016 budget.

These increases were not made public until March 2016 when the provincial Sunshine List let the cat out of the bag.

When this occurred, Pappert was leaving; Thomson had turned in his resignation to work elsewhere and Al Horsman left for a better job in August 2015 to become CAO for Sault Ste Marie. Only Mark Amorosi, head of HR, Legal Services and Finance remained.

In fairness, Mr. Horsman was not a party to this as he was removed as Chief Financial Officer in November 2014 to take over Waste Management and Environmental Services. He was not a city employee when the council approved the 2015 senior management increases in camera last December 10.

Was there fear of recrimination or loss of reputation among this group who hid their substantial salary increases behind an ill-advised code of silence?

When I asked city Clerk Stephen O’Brien for the minutes of the closed session held December 10, I was informed closed session meetings are “not part of the public record” and are not available.

The hidden benefit

While you may think those increases were out of line without substantial performance evaluations to back them up, there was another hidden benefit that no one, especially the recipients, want to talk about.

In my opinion, Ann Pappert walked away from this city as a millionaire . For more than five years her base gross salary exceeded more than $1,073,979. That did not include annual taxable benefits or the $20,000 “moving allowance” she received as incentive to move to Guelph or the taxable benefits she received over those 56.5 months as CAO.

The real benefits story lies in her pension. Following more than five years employed by the City of Guelph, her pension is 70 per cent of the average of her previous five years plus 4.5 months in 2016. Upon retirment, that gives her a lifetime pension of $150,300 a year, indexed, plus paid health and dental coverage, any accumulated unused sick leave or vacation time and a severance allowance that was part of her employment contract. Details of these management contracts are not made public. Often called the golden handshake, these termination costs can range from a few months to multiple years of the employee’s former salaries. Throw in unused sick leave credits and or vacation and it adds up.

If Ms. Pappert had resigned in 2015 before her five-year anniversary of being CAO, and without that huge 2015 increase, her pension would have dropped to an estimated $144,120 per year. Ms. Pappert is a relatively young woman and has years to live on a very comfortable income for the rest of her life when she starts drawing it.

But that’s the tip of the iceberg. Excluding Mr. Horsman who did not avail himself of the Salary-Gate exercise, the two remaining participants will also see their pension benefits take a giant leap forward. While Mr. Thomson was employed by the city for a very short time, he is now CAO. He joined the staff in 2013 with a salary of $172,000 and is now making north of $220,000 as CAO. That’s an estimated $48,000 salary increase in not quite three years. Of course his job responsibilities increased substantially. Mr. Amorosi is still chugging along with a salary of $209,000 as the man in charge of Human Resources. City Finances and Legal Services.

The bottom line is Ms. Pappert is not the only winner in Salary-Gate. Both Mr. Thomson and Mr. Amorosi will also benefit, not only receiving 2015’s large salary increases but also growing enhanced pensions while still employed.

But here’s the underlying problem that citizens face regarding these awards to senior managers.

The growing retirement liabilities facing Guelph

The city’s annual audited financial report states that there are two staff retirement liabilities on its books: One is $14,519,000 connected to 1,944 city employees who are members of the Ontario Municipal Employee Retirement System (OMERS). This liability grew by $2,087,000 between 2014 and 2015. The total city reserve fund to cover this liability is $1,799,000. OMERS is currently underfunded by $7 billion. This means that the citizens of Guelph must guarantee payment of those defined pensions for the life of the retired employees.

Here’s more. There is another staff retirement liability on the city books is $16,850,000 covering other non-OMERS employees. It is backed up by a reserve fund of $1,147,000.

These two liabilities total $31,369,000 for 2015 and aregrowing. Adding younger workers exacerbates the rising costs because people are living longer. Also, awarding excessive remuneration to all levels of city staff pushes the liabiltiies beyond the projected rate of inflation. Last year the Consumer Price Index (CPI) was 1.1 per cent.

In the case of the OMERS employees the liability increased by 15.5 per cent from 2014 to 2015. Projecting that growth rate forward for 10 years and the OMERS employee group liability is estimated to exceed $36 million.

This is clearly not sustainable given the current operational Fund and Capital Fund growth pattern of the last 10 years. The present administration appears unable or unwilling to take the necessary steps to correct this growing cost problem.

There is a solution on the table

Guelph citizen Pat Fung, CPA, CA, prepared a thorough analysis of the audited city financial statements as published by the corporation that was ridiculed and ignored by senior city staff, Mayor Guthrie and a majority of council. The Guelph Merciry Tribune also refused to us the Fing report and denied placement of a full-page ad onnthe grounds it was not documented, too political and was inflamatory.

Fortunately, many people in the city have read and understand the Fung analysis and his recommendations to halt the bleeding caused by mismanagement. How many Urbacons, GMHI’s and secret meetings have to occur before council wakes up and takes action?

Salary-Gate is the epitome of three member of senior management self-serving their own interests and not that of the public. What kind of message does this send to all employees and the citizens?

The fact remains to this day, there has been no explanation of why the increases were awarded, or why it was withheld from the public for four months? It has already resulted in total destruction of the public trust.

If we allow this betrayal of trust and confidence then it’s a sure thing that in five years that Retirement Liability will grow to more than $5 million.

An unrelated footnote: According to the city Financial Report, the total fines made in the Provincial Offences Court in the old city hall for 2015, was $14,337,000. Of that, $8,022,000 has been considered to be uncollectable. That means that 55.9 per cent got away without paying.

What does this say about our justice system administered by the City of Guelph?




Filed under Between the Lines

A saga of senior management’s protected indulgence in secrecy

By Gerry Barker

October 17, 2016

This week I asked City Clerk Stephen O’Brien to see the minutes of the closed session of council that approved the 2015 increases to four members of the senior staff December 10, 2015.

He replied: “Thank you for your email. Closed meeting minutes are not open public records and therefore I cannot share such minutes with you.”

It was not an unexpected reply. But, how can public business be discussed in closed session and not be part of the public record? This is a threat to the right for citizens to have access to public information. If abused, it sets the stage for illegal and corruptive action on the part of the participants.

There is no public input in these closed sessions. The perfect example of abuse is the salary increases given to four senior managers in camera, December 10, and concealed until the Provincial Sunshine List for 2015 published them last March. How can the citizens trust its elected officials and staff to not deliberately hide information that concerns the public interest and public trust?

The only recourse for citizens is to commence a Freedom of Information request to obtain the details. The risk is what is redacted (blackened out), how long will the request take and be refused again?

Except, we already know the outcome of that closed session, thanks to the Provincial Sunshine List blowing the cover of those oversized increases. What’s more important is what was the methodology of determining Ms. Pappert’s increase of 17.11 per cent or $37,581 for 2015?

That particular increase was the only one to which Mr. Amorosi responded. To paraphrase his comment: ‘Ann did not receive an increase in 2014 because she did not request one from HR.’

Well, as it turned out, that wasn’t true. She did receive an increase of $5,500 in 2014 according to the 2014 Sunshine List. The truth is, the citizens of Guelph, who pay the bills, now have learned that the CAO of their administration received a total increase in her salary of some $43,000 in two years. That’s a 20 per cent increase and did not include taxpayer-funded taxable income..

It was not documented or explained in any way why she deserved that increase, or who conducted her performance review to substantiate the increase.

But the other three recipients, Al Horsman, Derrick Thomson and Mark Amorosi also received 2015 salary increases between 14 and 19 per cent.

The fallout came swiftly. Horsman was first to resign leaving in August 2015 because he knew what was coming. Derrick Thomson tendered his resignation to accept a job in the Town of Caledon. CAO Ann Pappert resigned in May 2016 two months after the Sunshine List revelation.

The last man standing, Mark Amorosi is still with us. Derrick Thomson was recalled to take over as CAO of the city.

The curious part of all this is why Mark Amorosi was passed over twice to become CAO? In each case he lost the job to staffers with less city experience than him. In 2011, he was a candidate for promotion to replace the retiring CAO Hans Loewig. Instead, Ann Pappert was selected.

Again this year Mr. Amorosi, the lone original senior manager with eight years experience, Derrick Thomson was selected as his new boss.

*            *            *            *

In 2008, the city administration, led by former mayor Karen Farbridge, hired Mark Amorosi to head up Human Resources. The new city hall general contractor, Urbacon Buildings Group being fired off the job in September 2008, overshadowed his arrival. In the following five years, five lawsuits and an $8.96 million settlement to Urbacon occurred just prior to the 2014 civic election.

The blame game was played to the extent that in October 2014, Ms. Farbridge and two of her councillors were defeated. Two other council supporters declined to run. Chief Administrative Officer, Ann Pappert, later said her predecessor, Hans Loewig, kicked the contractor off the job. To this day, not one elected councillor at the time took any responsibility for the wrongful dismissal of Urbacon.

Four of them who were on that council are sitting as councillors today including June Hofland, Karl Wettstein, Leanne Piper and Mike Salisbury.

Mark Amorosi was rising through the senior management ranks to become Executive director of Human Resourses (HR) and Legal Services (LS) under the job title of Corporate Services.

Up to that point, he had served under two CAO’s Hans Loewig and Ann Pappert; two Chief Financial Officers, Margaret Neubaur and Al Horsman, plus a senior manager in the Finance department, Susan Arum who was acting CFO until she resigned. There was another man hired to be CFO but resigned after a week on the job.

But Mark Amorosi remained the constant in the senior management ranks.

His big opportunity came early in November 2014, just weeks after the civic election.

CAO Ann Pappert announced a senior management reorganization. The title Executive Director was dropped in favour of Deputy Chief Administrative Officer (DCAO). This was because Janet Laird, chief of Waste Management and Environmental Services, retired. Denis McCaughan, Chief of Operations, left his city job with no explanation.

There were three senior managers who gained that DCAO title, Al Horsman, Derrick Thomson and Mark Amorosi. They all received a $6,200 increase that same month of November to reflect their alleged new responsibilities.

As a result of this reorganization, Mr. Horsman, the CFO, was moved to replace Ms. Laird as DCAO of Waste Management and Environment Services. Derrick Thomson, who had been with the city for a little over a year, was named DCAO of Operations replacing Mr. McCaughan.

Mark Amorosi added finance to his responsibilities of HR and LS. Next to the CAO, he became the most powerful civil servant in the City of Guelph administration.

Lack of continuity of the financial staff

As the new head of finance, Mr. Amorosi has named four people to the job of General Manager of Finance and Treasurer in just 20 months. First there was Katrina Power, no longer with the city. Then Janice Sheehy arrived in March 2015 and left in March 2016. James Krauter as acting GM of Finance and Treasurer replaced her. He is currently on the job during the absence of the newly appointed GM of Finance and Treasurer who has the added title of Chief Financial Officer.

Last July, Mr. Amorosi announced that an analyst in the Finance Department, Tara Baker, was appointed as the new CFO, General Manager of Finance and Treasurer. In doing so, Mr. Amorosi was aware that Ms. Baker was on maternity leave until next year.

In his current position, Mr. Amorosi has been the defacto CFO of Guelph for almost two years. In that time he has overseen two city budgets and is involved today in the 2017 budget. This is the man responsible for the finances of a $500 million Corporation that had a budget of $382 million in 2016.

Guelph resident Pat Fung, CPA, CA completed a financial analysis of the city and sent a copy to each member of council. Mr. Amorosi, hief Financial Officer in the administration, did not agree with the figures. The source of the facts in Mr. Fung’s analysis came from the city’s own audited Financial Information Reports filed with the Province for 2011, 2012, 2013 and 2014. In addition, Mr. Fung used portions of the city’s own consultant’s, BMA Management’s report for 2014.

This information compared Guelph’s operating and capital spending with other similar sized Ontario cities. The results are devastating because Guelph’s operating costs are some 50 per cent higher than either Kitchener or Cambridge.

The per capita cost in each reflected how much more the city is spending compared to the sample cities.

Mr. Amorosi said that per capita costs comparison is irrelevant. He should know because he lives in Hamilton and has not paid Guelph taxes for eight years as a senior employee of the city.

Maybe it was because he said the per capita cost to the people to manage its affairs is irrelevant.



Filed under Between the Lines

Get ready for the 2017 budget dance that threatens civic enlightenment

By Gerry Barker

October 13, 2016

The city staff is busy these days to create the proposals for two main operational budgets for 2017.

There is the tax-supported budget that includes much of the operating expenses of the city including all city employees, as well as city, police, fire, and EMS. This cost consumes 80 percent of all property tax revenues. According to the analysis done by Pat Fung, CPA CA, in 2008, total city operating costs were $246.801 million. In 2015, the last full Financial Information Report (FIR) available, the city spent $385.611 million an increase of $138.810 million in eight (FIR) reporting years or an increase of 56.2 per cent.

The Consumer Price Index (CPI), increased by just 11 per cent, the city population increased by 8 per cent in the same period. The non-taxable services including the cost of electricity, was increased by 42.5 per cent in just the past four years. Water as well, exponentially increasing by an average of 4 per cent every year since 2007 despite the reduction in consumption.

Now, the city is adding a levy to pay for maintaining the storm water sewer system to be paid through your hydro bill. Along comes Premier Wynne’s new carbon tax also being added to your hydro bill starting in January. Let’s not forget the $5 charge to dump your yard waste at the Waste Management centre on Dunlop road.

Property taxes are only the beginning of citizens’ costs to live here

So let’s get this straight. In 2017 citizens will face paying separately for five required services. Its just more user fees loaded onto residents who are already paying taxes through their property values.

When you think about it, it’s paying a tax on a tax just to live in this city. We have to have electricity, water and waste removal. These are essential bread and butter costs to citizens.

Take this new Wynne carbon tax. If you own a car, motorcycle, motorized boat, snowmobile, gas-fired lawnmower, anything you own that uses fossil fuel including natural gas and oil-fired appliances; you are already paying a carbon tax on your usage of fossil fuels.

In the case of gasoline, the city receives a rebate on the federal gas tax that amounts to some $2.5 million. Now it appears that may be reversed as the Wynne carbon tax takes its place. Anyone wonder where that tax is going, the city or the province?

Regarding the Guelph 2017 budget, the elephant in the room is the huge bill to replace aging infrastructure, some of which may be 200 years old. The Association of Ontario Municipalities, (aka AMO), has estimated the cost of infrastructure repairs and replacement in Guelph is $205 million. That is a large chunk of change.

Last December, city council held a closed–session meeting, before the open public one, in which it decided to push a staff proposal of a 2 per cent, ten-year surcharge on property taxes into 2017. This staff proposal would increase Guelph property tax rates to more than 5 per cent for 2017.

Council agreed last December to kick the can down the road.

Looking back during the eight years of the Farbridge administration, there was little effort to tackle the aging infrastructure problem. But they managed to build more bike lanes, shrink major roads to provide more bike lanes. The administration concentrated on environmental services such a waste management, alternative energy sources, and downtown revitalization.

The single largest cost on the city books each year was for environmental services.

There are a lot of mistakes that were made managing this area including the deal made with a Detroit contractor to process recyclables in the Guelph recycling plant requiring an extra shift to do the work. The quality of material for recycling from Motor City created sorting problems and the deal fell apart leaving taxpayers with a bill of more than $1 million.

Then there is the decision to build an organic waste processing facility costing $34 million. The capacity was approved to process 30,000 tonnes of wet waste per year. Guelph only produced 10,000 tonnes per year so other sources were invited to send their wet waste to Guelph. Chief among them was the Region of Waterloo that committed to providing $10,000 tonnes paying less than the operating costs of the facility. Trouble was they couldn’t provide their contracted supply. Today, it is not known if the organic waste plant is running at capacity or not. If not, the city taxpayers are picking up the bill.

The financial costs of operating this facility have never been revealed. The plant is manned by employees of Aim Environmental, a subsidiary of Maple Reinders, builders of the plant. Another Maple Reinders subsidiary, Organix, sells the mulch produced from the wet garbage.

The people of Guelph get bupkiss from this deal except to pay the operating costs of the plant, forever.

Then along comes building a new Downtown Library, again

Preparing this 2017 budget is fraught with problems. In July, the Mayor managed to get council to pass a resolution to include the new downtown library in the 2017 portion of the capital budget.

What I don’t get is Chief Administrative officer (CAO) Derrick Thomson has already stated that the ten-year, capital-spending budget, is already under-funded by $170 million. So where is the money coming from? There is no attached source of funding for this project. The irony is that Karen Farbridge promised a new library 15 years ago in her first term in office. The estimates of paying for this ranges from $60 million to $93 million.

Let’s convince city council to build the library downtown

Perhaps there should be an organized public effort by the Friends of Library to engage in fundraising by approaching the service clubs, and other community organizations to show the city administration that they are ready to subsidize a new downtown library. Never mind these handouts through the wellbeing policy of the previous administration; the Library is a vital and important part of our social connections in our city. The numbers are there, so we must act. If citizens care enough to raise enough serious money to convince the council to stop stalling and build the new downtown Library, then what are we waiting for?

Why not start with the city including a $1 million annual commitment for the next five years toward the library project? Include it in the 2017 budget and not just a bookkeeping entry but cash deposited in a special segregated account. This should galvanize the citizens to build a beautiful downtown library to broaden the reach of our real sociability for young and old.

But folks, history has told us that we must take action now. The powers at 1 Carden Street will get it.

A modern Library is not just about books. It’s about connecting people to encourage cultural events, to hold conferences and workshops, even a snack stop … it’s a meeting place and keeper of who we are and who we can be.

The Farbridge administration, in its wisdom in 2007, spent some $16 million renovating a decrepit unused convent on Catholic Hill owned by the Roman Catholic Diocese of Hamilton.

Construction took five years to complete the project that was, by city admission, over budget by $3.3 million and has less than a tenth of the traffic of the outdated downtown library.

Trouble is, the heritage element of council, supported a decision that used the excuse that it was saving a pre-Confederation building that today has little resemblance to the original. And, It was taken and renovated on someone else’s property.

So Mayor Guthrie, why not tell us the whole story? Is this part of your legacy to create a 3P deal, a joint project of public and private investment, to combine the library with a redevelopment of the Baker Street parking lot?

If that happens, what does council do to replace all that lost parking spaces in the downtown where parking is already a serious problem?

With the record owned by the city in building major projects that had cost overruns and delayed completions, it is difficult to assume that anything will change within the present administration culture.

These star-crossed city managed projects include the Wyndham Street underpass; bike lanes that start nowhere and stop nowhere; the farmer’s market renovation; the Waste Management Innovation Centre; The new City Hall project; the Guelph Municipal Holdings Inc attempts to install alternative energy solutions costing some $37.1 million; the civic museum (see above).

Managing cultural sites at a loss, is that why the city can’t build a new library?

The city management of two major cultural edifices, The Sleeman Centre and the RiverRun theatre complex is subsidized by $781,000 of taxpayer money every year.

This is not a credit to Guelph. Nor is it fair to the taxpayers.

We have people on council who believe that these two sites are investments. Those among us see it as a total failure of management. Particularly since the Mayor praised the recent ten-year contract between the privately-owned Guelph Storm Hockey Club that has reduced their rent by $50,000 a year taking the city subsidy of this facility to $299,000 a year or $5 million over 10 years.

There is a vacancy of clear thinking; judgment and basic understanding how the city works on the part of the majority of councillors.

We can’t do much about it now.

But think. In the next two years if citizens will band together and raise say $10 million, do you think those elected officials will go to the polls ignoring the debris of their basic functionality?

If they fail to support the downtown public library project and the role of citizens, they do so at their own peril in 2018.

Let’s do it Guelph! The politicians need to have their lamp ignited.


Filed under Between the Lines

Anatomy of deception, there are more questions than answers

By Gerry Barker

October 10, 2016

The operation of the city changed dramatically in early November 2014, when senior staff reorganized before the newly elected Mayor took office, December 1, 2014.

It is unclear to this day, who authorized this major realignment of tasks and responsibilities. The defeated mayor was still technically Mayor of the City of Guelph until the end of November. Was the new mayor, Cam Guthrie, informed of the senior management changes? Did he approve on behalf of the newly elected council?

The following is a series of questions to which citizens have thr right to answers from the administration.

In the November 2014 realignment, the Chief Administrative Officer (CAO), Ann Pappert, stated that the changes were discussed and approved by the outgoing council before the civic election October 27. Was there any input from the new mayor and his council?

Is it true that the CAO has the exclusive authority of hiring and firing of all city staff?

Why did the reorganization plan remove Chief Financial Officer (CFO), Al Horsman, who was reassigned as Deputy Chief Administrative Officer (DCAO), of waste management and environmental services?

Yet another head of city finances

Was DCAO Mark Amorosi, of Corporate Services, assigned to be in charge of city finances plus head of Human Resources in November 2014? That’s a yes.

When asked about this $37,591, 17.11 per cent increase for CAO Pappert taking her 2015 salary to $257,248, DCAO Mark Amorosi, said the reason was the CAO did not receive any increase in 2014. In fact, according to the provincial Sunshine List for 2014, she did receive an increase of $5,052. Did Mr. Amorosi not understand the CAO did receive an increase in 2014?

Did all four members of senior management, CAO Ann Pappert, DCAO’s Mark Amorosi, Derrick Thomson and Al Horsman, receive salary increases in 2014?

Were these salary increases part of the 2014 budget and when and which council approved them?

In the November lame duck period, did the outgoing Farbridge administration approve the 2014 senior staff increases before leaving office?

In his new position, was Mr. Amorosi also in charge of the Human Resources department policies including staff performance reviews, research of salary levels, recommending salary and or benefit increases for consideration of the CAO and council?

That being the case, does this new responsibility include members of the non-union management association, of which Mr. Amorosi is a member? Did he recommend salary and benefit increases based on his performance reviews and salary increases including his own?

Due to the change of city council membership following the October 2014 civic election, the 2015 budget was not approved until late March 2015.

Were the 2015 senior staff increases included in that budget?

Delayed action salary increases for the four senior staff managers

If not, why were the 2015 senior staff increases totaling $137,894 approved during a closed session of city council December 10, 2015?

That being the case, do the minutes of that closed meeting show which members of council voted to approve the four staff increases, for the 2015 budget year?

In view of Mr. Horsman leaving the city in August, there is a small adjustment in the 2015 Sunshine List because he did not draw his salary after August. Newly appointed DCAO Scott Stewart filled his position in November.

Did the CAO, and DCAO’s draw their increase during 2015 anticipating approval by council?

As DCAO, head of Finance, was Mr. Amorosi directly involved in how much, how and when the senior staff increases would be awarded?

Wearing his HR hat, did Mr. Amorosi present his recommendation for his fellow senior managers’ increases to the CAO? Did the CAO know about the salary increases prior to the closed council meeting December 10?

If council did not approve the increases until December 2015, did this not represent a major negative variance to the 2015 budget?

Why did the council and senior staff not inform the public of the 2015 senior staff increases?

Now, what about the senior staff increases for 2016?

Council approved the 2016 budget last December 10. Were there additional increases for senior staff included in that budget?

When will council inform the public of 2016 senior staff increases?

Mr. Amorosi has been in charge of city finances for the past 23 months. Why has he appointed to date, three General Managers and Treasurers in the finance department, two of whom are no longer with the city, Katrina Power and Janice Sheehy? Despite conducting a broad search by a professional headhunting company, why did Mr. Amorosi choose a junior financial analyst in the Finance Department to become the next GM of finance, Treasurer and CFO?

As of a month ago, why has the Finance department not completed the 2015 Financial Information Report? It was due to be submitted to the Province by June.

Why did CAO Ann Pappert resign last May? Why did Derrick Thomson resign to take another job with the Town of Caledon? Why did he return to the city as senior management to replace Ann Pappert and at what salary?

Did Mayor Guthrie vote to increase the senior staff salaries for 2015?

Why did Mayor Guthrie go out of his way to praise the senior management “team” despite evidence presented to council by Guelph resident Pat Fung, CPA, CA? He detailed serious financial problems in the city, (go to to obtain a copy of Mr. Fung’s expert analysis).

Why did Mayor Guthrie admonish the public by stating “I find it a bit disturbed that people would come in here and challenge our staff in this way.” Does the Mayor believe the staff is so competent that it is above criticism?

Why did the Mayor make these comments when all members of council received a copy of Mr. Fung’s financial analysis last August 18? Who was he protecting?

These questions requiring answers will play a role in the developing the 2017 budget and beyond. Between the next 18 to 24 months, CAO Derrick Thomson’s new administrative plan becomes the new city business plan, I think. It means we are stuck with a flaky, non-specific and a no-goal plan, complete with meaningless pie charts that will take us to the next civic election.

It is now obvious that this senior administration and leftist-dominated council deliberately refuse to acknowledge the serious financial mistakes of the past. It means extending the system of closed meetings, closed minds and continuing irresponsible management.

We are captives of a secretive, uninformed and politicized management who don’t care what we think about their performance.

The sad part is our Mayor is going out of his way to praise staff incompetence employing secrecy and irresponsibility that is the trademark of the present administration.

We are all aware of the consequences following almost ten years of an administration gone wildand the truth is even more elusive.




Filed under Between the Lines

When respect cuts both ways

By Gerry Barker

October 5, 2016

Comments on the this week have been informative and conducted with respect of citizens’ perspective of living in Guelph.

This shows that people are thinking about how their city has been managed. They are also articulating their point of view with respect. It’s refreshing if only the administration would listen.

Here’s how the owners of the Guelph newpapers and other media played ball with their power unequivacally supporting the administration, not for four years, not for eight years but to date almost forten years.

As a critic of the administration(s) for the past ten years, I am attacked from all sides, particularly by senior management and surrogates of the majority of elected officials. This group was most active prior to civic elections in 2010 and 2014.

For five years up to 2011, I wrote a regular column called Between the Lines in the Mercury editorial page that criticized the Farbridge administration’s mismanagement, particularly of city finances.

I received an email from the managing editor in the fall of 2011, saying I was fired because the paper was going in a different direction. For the record, not only that didn’t happen but also the publication folded last January. That event shocked most people but I predicted it a year before because there was not sufficient revenue to support the publication.

I charge that Ms. Farbridge and her confederates spoke with the Publisher of The Record in Kitchener who was also publisher of the Guelph Mercury, to stop using my column Between the Lines. The messenger was Lynn Haddrell, Editor in Chief of both papers to Phil Andrews, Managing Editor of the Mercury. I always respected Phil but I knew he was caught between a corporate decision and having control of the content of his newspaper. None of these people are part of the Guelph political scene today nor does the Mercury exist.

The relationship between former mayor Farbridge and the Guelph Tribune

As for Ms. Farbridge and four members of her former council, she is no longer in charge of our city.

Why did Ms. Farbridge have the power to do what she did to get rid of Her leverage lay with he city paying an estimated $400,000 a year of taxpayer money to the Guelph Tribude to run “City News” pages in every issue of the paper.

This is nothing but naked power exercised to get rid of an individual consistently critical of the city operations.

Then in early 2012, the administration again tried to shut down This time, Executive Director of Human Resources and Legal Services, Mark Amorosi, stated the city notified a Guelph blogger (not me) that the city would no longer respond to requests for information from “any personal blog website.”

I took it that he meant me.

Amorosi went on to say that the city only interacts with “legitimate media outlets” that follow the Ethics Guidelines of the Canadian Association of Journalists (CAJ).

It appears that while Amorosi used the CAJ as the benchmark of who should have right of access to public information, he couldn’t have read the CAJ Ethics Guidelines. If he had, he would have read the following:

“News organizations- including newspapers, websites, magazines, radio and television – provide forums for the free interchange of information and opinion. As such we (CAJ) seek to include views from all segments of the population.”

“Personal online activity, including emails and social networking should generally be regarded as public and not private.”

Believe me folks, it takes a lot of energy, research and dedication to produce a blog that is always available online to anyone and comments on events that city hall doesn’t want to talk about. And I do it using my own money because I believe it’s the right thing to do.

Government is for all the people not the chosen few

I do it because I don’t believe that any government, particularly in Guelph has the power to suppress, muzzle or deny information to which the citizens are entitled. This includes Provincial and Federal freedom of information laws.

Despite the information roadblocks set up by the administration, the ugly underbelly of gross mismanagement by an entrenched administration and majority of council is gradually exposed.. It includes neglect of vital civic issues such as affordable housing and family services, the aging infrastructure and wasteful spending on projects that were poorly planned and executed.

The evidence is there. Yet there is an element in this city that keeps saying it’s time to move on. They wish.

So let’s make it simple:

* How do we pay for the Urbacon $23 million excessive new city hall costs? How do we replenish the drained reserves?

* In 2011, Coun. Leanne Piper bragged that the city had more than $80 million in reserve funds. Most of this has evaporated as the reserves were used to cover up mistakes. These include lowball budget forecasting causing negative variances of the city budget at year end. The Province requires that the city accounts be balanced by year’s end.

* The sloppy and careless Community Energy Initiative has already cost $37.1 million and counting. The Guelph Municipal Holdings Inc (GHI) has a staff costing $267,000 annually, yet its Chief Executive Officer says GMHI has no money. Add to that the Guerlph Hydro subsidiary, Envida Community Energy Corporation owes GMHI $11 million and it does not have any money.

Gee, do you think you could run your personal budget that way?

* The role of Guelph Hydro in this convoluted financing of a co-generation plan is murky because the GMHI meetings were all held in private sessions. The plan is supposed to not only generate 10 megawatts of power from each District Energy Node (gas fired pump) to the grid, but also supplies hot and cold water to a small number of nearby buildings. The outcome has been a financial disaster due to poor planning and execution with Ms. Farbridge chair of GMHI until her defeat in October 2014.

Yes we can fight city hall

Supporting this administration is the little paper that can’t, the Guelph Mercury Tribune. It’s biased with one-sided coverage of the administration has been revealed when the paper refused to publish Guelph citizen Pat Fung, CPA, CA’s expert analysis of the financial state of the City of Guelph. Not only that but the paper refused a full-page ad on the Fung analysis claiming it wasn’t documented, was inflammatory and too political.

And all this time we believed that more people would be able to read the financial analysis.

The administration. who received copies of Mr. Fung’s analysis, rejected his findings and this was dutifully echoed in the Tribune news pages. Instead of responding with reasonable questions following Mr. Fung’s five-minute presentation to city council last Monday, council waited until he left the chamber to bolster their opinion that his findings were inaccurate.

For the record, not one member of council or the senior management holds the Degree of Chartered Accountant or Certified Public Accountant. DCAO Mark Amorosi controls city finances. He does not possess degrees in either of Mr. Fung’s professional designations nor has his experiences, performing financial analysis and senior staff management for major corporations.

Now comes the next stage of getting the eight-page Fung analysis to as many people as possible. A group of citizens are supporting a complaint about the paper’s refusal to carry the report. They are in the process of contacting the National Press Council to complain about the Tribune’s rejection of a thoroughly researched report..

Think about this. The city has a communication department with 11 communication specialists plus someone on contract. It includes one of that number to be exclusively assigned to the Chief Administrative Officer, Derrick Thomson. Question, does Mayor Guthrie have his own communication specialist assigned to him? Just asking.

Let’s see, the cost of this department is just over $1 million not including taxable benefits. The Tribune has only two reporters covering city hall and they have to file reports twice a week.

Respect is won only when there is open and transparent government that is accountable to the people. And a community newspaper that has no competition openly covers both sides of the story.

Oh yes, whatever happened to Andy Best who was hired last year to bring that type of government to Guelph? Just asking.




Filed under Between the Lines

How a failing Guelph administration is protected by a Mayor defying criticism

By Gerry Barker

October 3, 2016

When Mayor Guthrie announced his intention to run for mayor in January 2014, he talked about “For a Better Guelph.” He also mentioned the “Guelph Factor” as part of the problems facing the city and his reason for running.

But then, he campaigned on holding property tax increases to two percent or the

Consumer Price Index (CPI) that in 2015 was 1.1 per cent. In 2015, his first year in office, the Guelph property tax increase was 3.96 per cent including the effect of the assessment increase on properties.

On December 10, the Mayor presided over a closed session of council that approved paying four senior staffers $137,894 in salary increases for 2015. As this was a closed session, the reasons for including the discussion and vote have yet to be made public.

The four senior managers, CAO Ann Pappert, DCAO’s Mark Amorosi, Derrick Thomson, and Al Horsman received excessive increases that became public with the publication of the Ontario Sunshine List last March. Mr. Horsman resigned in August 2015. Ms. Pappert resigned last May. Mr. Thomson also resigned in April to take another job but was brought back to take over the CAO position in June.

Is this the Mayor’s new interpretation of “A Better Guelph?”

Then along comes a Guelph resident, Pat Fung, CPA CA who examines the audited Financial Information Reports published by the city for the previous four years. He also examined the 2014 BMA consultant’s report of city operations.

This culminated in a detailed analysis of the city’s operational costs, compared with similar sized cities. It broke out the costs of the various departments and institutions of the city and compared them to the Ontario averages.

Mr. Fung, acting as a concerned citizen, sent each member of council a copy of his analysis August 18. Last Monday night, he made a five-minute presentation summarizing his findings. The council response was zero, although the large crowd in attendance applauded the presentation.. In fact, the Mayor shut him down when he directed a question to DCAO Amorosi.

The Mayor followed it up commenting: “I find it a bit disturbing that people would come in here and challenge our staff in this way.”

What does Mayor Guthrie mean when he adds, “in this way?” Are the people he represents not supposed to complain when accurate facts of financial mismanagement are exposed? Which “way” should the people react and respond?

Our Mayor seems to have drifted away from the people, who supported him, to go out of his way to protect the hired help. Does he seriously believe that there aren’t people in the city who clearly understand the gross mismanagement of the city that he promised to correct?

How does a credit rating reduce operational costs?

If the Mayor doesn’t understand the financial state of the city, how does he fulfill his promise of a “Better Guelph?” Does he believe that an AA+ credit rating by Standard and Poors (S&P) makes it all better?

You remember the S&P rating company. Between 2006 and 2008, it gave inflated credit ratings to mortgage-backed securities sold by most major U.S. and global banks. The S&P ratings nearly collapsed the global economy when millions of so-called investments were found to be worthless, except for the people who sold them using S&P credit ratings to support their validity.

Some Questions: The staff reported that S&P gave the city the AA+ credit rating in 2013 same as it is today. Did the city pay for this S&P report and how much did it cost? Why is there a three-year gap between the reports? How does this pat on the back credit rating affect operational costs of the City of Guelph? Answer: It has nothing to do with operational costs. Finally, when the city borrows money, it backs the debt with the assets of a $500 million corporation as collateral. This applies to most Ontario municipalities who borrow money. But then, Guelph already exceeds its debt ceiling as set by city councils.

Aren’t the city staff and some members of council applying the same tactic to misinform the citizens and lull them into not complaining? It appears that the Mayor has joined in that chorus of dumbing us all down.

Which brings us to the public financing of the Guelph Mercury Tribune

When Pat Fung took his report to the Tribune for publication, he was told they couldn’t run it because it was “too long and too political.” At no time did Editor Doug Coxson offer to have a reporter review Pat’s analysis to develop a news story.

By any interpretation, it is a news story and worthy of coverage.

I spoke with Pat and suggested we take out an advertisement in the paper to print the details of his report. I also agreed to raise the money for the ad.

I delivered the copy to the paper last Tuesday that the ad representative accepted and downloaded from UBS drive. I also presented a cheque for $2,083 to pay for the ad. On Wednesday morning, I checked to see a finished proof of the ad and was told there were “red flags” about the copy. And there had to be changes.

I asked if the ad was to run Thursday and was told no, not until the paper approves the copy. I requested the objections in writing and was told they would not comply but the ad rep would give a brief summary of the objections. These included lack of documentation, inflammatory content and details of who was placing the ad and contact numbers.

It was obvious, Metroland Publishing, the owners of the paper, had made a decision not to support the Fung analysis, either in the editorial section or a paid ad.

Now this deliberate blocking of free expression is going to be forwarded to the National Press Council for adjudication. The complaint will name the owners, TorStar Corporation, its subsidiary Metroland Publishing and The Guelph Mercury Tribune.

It’s astonishing, that in this day and age that a newspaper, enjoying a monopoly as the only paper in the City of Guelph, refuses to print a legitimate and accurate analysis without even attempting to review it or write a news story.

Instead, the paper published a news story with the heading: “Persistent city finance critic rebuffed at Guelph Council meeting.” Had the reporter read the Fung analysis? Did the editor even consider doing a news story about a citizen, trained and experienced in his profession, regarding the financial status of our city?

The answer my friends, is simple. The Mercury Tribune receives an estimated $350,000 to $500,000 a year from the city for publishing the “City News” pages in every edition of the twice-weekly newspaper. Those ads are paid by public funds so we have forcibly become partners with a newspaper. A newspaper that is biased favouring its city ads client and refuses to recognize its responsibilities to its readers who have legitimate causes and deserve space in the paper.

Citizens are victims in this unholy alliance between the city administration and this newspaper.

So much for democracy and free speech.

*            *            *            *

An important message from the editor

Dear Donor:

In the last three weeks, I solicited funds to pay for a full-page advertisement in the Guelph Tribune to reproduce the excellent analysis of the City of Guelph’s financial condition, compiled by Guelph resident, Pat Fung, CPA, CA.

I regret to inform you that the Guelph Tribune refused to publish Mr. Fung’s report as editorial comment using the excuse it was too long and too political. But then, the paper refused to allow citizen’s to purchase ad space to expose Mr. Fung’s details of the state of city finances.

I am personally embarrassed over these developments that I believe is nothing but planned suppression of the news that affects our community. I made a commitment to all donors to ensure that more residents would receive the Fung analysis. I can say now that it won’t happen, using the Tribune.

But, there is active planning to pressure the Tribune and extend the reach of, the only consistent critic of the city administration and supporter of the Fung Report.

We are appealing to the National Press Council to adjudicate a complaint that the newspaper, restricted fair comment by denying accommodating coverage of the Fung report on the news pages, but denied our attempt to publish the details in a paid advertisement. This is a clear violation of journalistic ethics and responsibility to the readership by suppressing information of vital public concern and interest.

We are not going to let up spreading details of Pat Fung’s analysis of the financial condition of our city. Doing this will require accumulating funds to inform residents of the details. Without access to the newspaper, we must seek other means of communication to express our points of view, both in print and social media using the Internet.

Accordingly, I will refund any donation made for this cause, if requested.

Please email if you want your donation refunded. Please include your full address and email ID.

Remember why we are here. There will be an election in 2018. If we fail to plan and fund our point of view now, the outcome will not be attractive.

Next time we have to be sure. This is only the beginning of a long march to create real change.

Thanks again for your support and I hope we can count on you in the future.


Gerry Barker



Filed under Between the Lines

City administration and Guelph Tribune team up to suppress citizens’ analysis of financial issues

By Gerry Barker

September 29, 2016

This week was eventful to say the least. What follows is a lot of info. Be patient, it will be up on for the next few days.

Pat Fung is a Certified Public accountant and a Chartered Account with wide spread experience in industry and business involving senior positions. His expert analysis of the high cost structure of operating the city and solutions to fixing the runaway costs of living in Guelph, was ignored on two levels.

First, Pat’s presentation to city council last Monday night, in the words of the Guelph Tribune, was: “Persistent city finance critic rebuffed at Guelph council meeting.”

During his five-minute presentation, Mr. Fung asked Mr. Amorosi to respond to the CAO’s new plan. It is to cover the next 18 to 24 months setting three performance goals: Service excellence, financial stability and innovation at city hall.

The Mayor interceded closing down the reply: “I find it a bit disturbing that people would come in here and challenge our staff in this way.”

Is the Mayor tone deaf? Is he now so supportive of the paid staff that no citizen can question their performance? Maybe he can explain just who he represents, the people who elected him to protect their interests, or the paid staff charged with managing the $500 million corporation.

The CAO did not explain what he meant by financial stability or those past financial disasters such at the Urbacon lawsuit involving the new city hall, costing $23 million over contract; the cost of the Community Energy Initiative that has reached $37.1 million and counting; the depletion of the reserve funds that the BMA consultants warned the administration by raising a “red flag.”

Commenting on the CAO goals, Mayor Cam Guthrie gushed: “I have never seen a more well functioning executive team ever… and this plan is amazing.” The news story in the Tribune did not carry details of the CAO’s new administrative plan and targets.

In his two-year record as Mayor, his ardent support of senior managers, our Mayor went out of his way to support former CAO Ann Pappert. He had to be the only person in the city who realized she was not up for the job. She resigned in May, as did current CAO Derrick Thomson who also decided to take a job with the Town of Caledon. Within a very short period of time, Mr. Thomson was hired to replace Ms. Pappert as CAO. Did our Mayor believe this was happenstance or crumbling of senior managemement under his watch?

For the record, Mr. Thomson was hired in 2013 as Executive Director of Operations, with a starting salary of $173,720, according to the 2014 Sunshine List. His responsibilities included managing the largest public service department in the administration.

In the 2015 Sunshine List, Mr. Thomson’s salary rose to $207,534. That’s an increase of $33,814 or 19.4 per cent. This occurred during a closed-door session of council December 10, 2015. His new salary as CAO has not been disclosed. Council approved 2015 salary increases of the four top senior managers: Ann Pappert, $37,591, 17.11 per cent; Mark Amorosi, $26,868,14.7 per cent; Al Horsman (no longer employed with the city); Derrick Thomson, $33,824, 19.48 per cent. Ms Colleen Clack was promoted from General Manager of Culture and Tourism to DCAO of Operations replacing Mr. Thomson. Her 2015 salary was $142,017. Appointed in June to her new post, her new salary will not be known until March 2017.

Do these senior staff increases reflect the Guelph economy?

Am I not the only taxpayer in this city that questions these increases and how they were established and by whom? Also as the decision was held in a private session, the public should know who attended that meeting and how they voted. I will request the city clerk to provide the minutes of this closed meeting and the vote result.

If this isn’t a deliberate attempt to conceal important information to which the public is entitled, then thousands of residents are being duped, Fortunately, the public will be told when the 2016 Sunshine List is published next March. If it weren’t for this list, citizens would never know the outcome of vital, financial statements that represent the public’s interest and to which they are entitled. It’s their money as shareholders of the city corporation.

The failure of Mayor Guthrie to not insist on public disclosure of these mega increases, identifies him as being a partner to this subterfuge that is tearing down what’s left of the public trust in its civic institutions.

But, this week a group of citizens raised money to purchase advertising space in the Guelph Mercury Tribune newspaper. I was informed that the paper would not publish the ad until I made changes to the copy that highlighted the financial analysis prepared by Pat Fung from two sources: The city’s own audited Financial Information Reports were submitted to the province and a city hired management consultant firm, BMA were used to document Mr. Fung’s analysis;

When told about the demands of the newspaper, I asked for written reasons for their objections of the copy. They refused to do that but the ad rep would tell me in general terms of the changes they required.

At that point, I realized that this objection was now in the hands of corporate lawyers.

At any rate, here is what they said: Nothing in the ad copy was documented. Well, that isn’t true as you may read for yourselves in a reproduction of the ad below. The sources of the information are clearly stated and have never been denied or challenged by any administration official, including the Mayor and council majority.

The paper said the ad contained inflammatory language. Again, is it not the right of citizens to present facts and protest government representatives and their conduct of the public business? This is something right out of the history books when the Soviets controlled the populace and their message.

Welcome to the Guelph Gulag.

Ignoring the fact that the civic action group, GrassRoots Guelph, purchased more than $6,000 in advertising in the Tribune during the 2014 election campaign, the present management demanded details of the organization, its non profit corporation ID, address (which was in the ad). These demands were obviously prepared by a lawyer, but who? Was it Metroland Publishing , owners of the Tribune, or the City of Guelph legal services involved? They wanted contact information when both Pat and I not only had our names in the ad but how to reach us through either or Pat Fung’s email address.

This is nothing but an attempt to suppress documented and legitimate protest of citizens illustrating excesses by the past and current administration. Under the Canadian Charter of Rights and Freedoms, there is still free speech in this country. Citizens have the right to protest, complain and challenge a public funded administration that is patently out of touch, and worse, uncaring.

So why is the newspaper blocking this important information? It’s probably to protect its lucrative advertising contract with the City of Guelph. “City News” pages appear in every edition of the newspaper. The citizens are paying for this service through their tax bills. The annual cost is estimated to range from $350, 000 to $500,000. Currently, it is impossible to find out. The Tribune owners abjectly support the administration through the news content and commentary.

Pat Fung sent a copy of his analysis to every member of council August 18. He asked the Tribune editor to publish the analysis as an op-ed piece and was refused on the ground it was too long and too political.

Pat and I then decided to collect funds to publish all or a condensation in a full page ad in the paper. We used the GrassRoots Guelph system to collect funds as it was the only established civic activist organization that has the structure to accept direction. GRG is not actively engaged at this point to represent all those folks who are seeking justice and a vehicle to vent their frustrations. never sleeps

Fortunately offers a window to comment and self expression. Further, GS never sleeps it’s content is available 24/7 to anyone who links to the blog.

Now you know the rest of the story. This is nothing but suppression of an accurate analysis of the state of city finances. Pat was willing to work with the Tribune but you cannot edit a 2,808 word document into 400 words as demanded by the editor.

The final question is why didn’t the Tribune editorial staff interview Pat when they had ample time to verify the accuracy of his analysis? Why have they not reported on the concerns of citizens?

The Guelph Tribune is not a newspaper but a print lap dog to the city administration that is paying a lot of Tribune bills and masquerading as a newspaper.

But judge for yourselves. Here is the ad the Tribune refused to publish.

Heading – A city in crisis

By Gerry Barker, editor of with Pat Fung, CPA, CA

September 29, 2016

A stirring wake-up call by Guelph resident, Pat Fung, CPA, CA, analyzes the financial state of the Guelph’s administrative mismanagement of our city that is exacerbated by a bloated bureaucracy and dysfunctional council.

It has now reached a crisis of misspent treasure and lack of confidence by the public in past and present administrations. It is expressed in annual property taxes, and user fee increases. The crisis includes secret deals made with certain developers to induce special treatment by reduction of development fees and taxes. City reserves have been plundered without public knowledge to cover up mistakes.

Reality and responsibility is non-existent as the staff management continues to claim the city is in “sound financial condition,” according to Deputy Chief Administrative Officer (DCAO) Mark Amorosi.

Since 2008, Mark Amorosi is one of senior staff overseeing the soaring cost of living in Guelph. He was hired in 2008 as head of Human Resources. Since then, he has grown in influence becoming a DCAO of Corporate Services, the man in charge of not only HR but also the controller of city finances since the senior staff reorganization following the 2014 civic election.

What Amorosi’s “sound financial condition” claims is compared below to the analysis done by Mr. Fung, an individual with an accredited financial background. The sources of his analysis are contained in the annual audited statements of the City of Guelph and the recent report of management consultants BMA.

Here is a chart, part of Pat Fung’s analysis

Guelph’s Operating Costs 2008 to 2015 (source: City of Guelph’s

audited financial statements)

($ thousands) 2015 2014 2008     $ Change 08 to 15     %

’08 to ‘15

General government 27,070 25,136 18,891 8,179 +43.3%
Protection services 79,550 75,506 51,855 27,695 +53.4%
Transportation services 60,381 57,405 43,380 17,001 +39.2%
Environmental services 76,238 72,697 35,035 41,203 +117.6%
Health services 29,180 27,522 18,524 10,656 +57.5%
Social and family services 43,601 52,280 51,183 -7,582 -14.8%
Social housing 21,372 20,444 n/a 21,372
Recreation and cultural services 40,906 39,481 23,947 16,959 +70.8%
Planning and development 7,313 6,155 3,986 3,327 +83.5%
Total Expenses 385,611 376,626 246,801 138,810 +56.2%
Consumer Price Index 126.6 125.2 114.1 12.5 +11.0%

Pat: Guelph should reduce its operating expenses by $20 million and freeze taxes and fees at current levels to fund the capital/infrastructure gap. We cannot continue to increase spending on operating costs on top of increasing spending of capital and infrastructure

Pat’s recommendation: Freezing revenues at 2016 levels and reducing expenses by $20 million, and holding expenses at $365 million for 20 years. City reserves would be built up to $200 million in 10 years. This would be reduced by whatever is spent in the interim on capital and infrastructure. This has the same financial effect as increasing taxes but is funded totally from within the current system of taxation and user fees.

Where did the money go? For example, note two categories: Social and Family services, a 14.8 per cent reduction and Social Housing, of which there was zero change in seven years. These are two key components of the leftist majority agenda on the present council. Yet during those eight years under the Farbridge regime, the categories were totally ignored.

But wait; let’s check out Environmental Services that enjoyed a 117.6 per cent increase. In fact more money was spent on the environment than Social and Family Services and Social Housing combined. Ask Coun. James Gordon about that as he says it’s his job to improve social services including affordable housing.

Here is another chart that captures the per person charges of Guelph’s selected expenditure categories compared to the Ontario Municipal Averages. These per person figures are from the City’s own consultant, BMA.

Selected areas from 2014 BMA report Guelph cost per person Ontario cost per person Excess spending relative to other Ontario Cities based on 120,000 population in Guelph
General government $229 $104 $15,000,000
Fire $185 $165 $ 2,400,000
Waste collection $29 $10 $ 2,280,000
Roads $244 $198 $ 5,520,000
Parks $77 $59 $ 2,160,000
Library $72 $50 $ 2,640,000
Total $836 $586 $30,000,000

According to the independent BMA consultant report, every person in the city pays $836 for the operational costs of these six defined areas. The average in Ontario is $586 per person. That’s a 42.66 per cent difference, or total excess spending by Guelph of $30 million per year.

Check this out:

Guelph Ontario

Waste collection $/tonne $137 $114 20%
Roads $/kilometre $27,617 $11,847 133%

* Why are waste collection costs 20% higher than average Ontario?

* Why are road costs 133% higher than average Ontario?

* Except for residential water/sewer usage, why are commercial and industrial     water/sewer costs 10% to 12% higher than average Ontario? Particularly when water consumption has declined by 16 per cent in the past six years.

* Why have Guelph Hydro rates increased by 42.5 per cent in the past four years?

According to the 2015 Sunshine List, the City has 92 middle managers carrying the title “manager,” in addition to senior and supervisory staff. The City must reduce these positions and flatten out the organization to make it more responsive and more cost effective. In our financial situation, we cannot afford this huge layer of middle management.

These soaring costs are one of the problems why Guelph has not achieved greater business and industrial development that increases revenue. The current assessment ratio between residential and commercial/industrial is a dismal 84 per cent to 16 per cent. It has not changed in ten years. The Ontario average ratio in many cities is 60/40. Neighbouring Milton is an example.

Now let’s take the General Government’s cost comparison. Guelph spends $229 per person in this category. The Ontario average cost per person is $104. The difference is a whopping 120 per cent additional cost to every resident of the city.

Further, General Government expense is not a service but overhead. Based on a per capita population, it can be reduced to meet needed operational expenses. This would bring the city government costs in line with what most Ontario municipalities are currently paying. Also, it’s an excellent place to start cutting operational costs.

This method does not affect service cuts to the public, the favourite excuse of the majority of council and the new Chief Administrative Officer, Derrick Thomson. He says the staff will not propose any service cuts in the 2017 budget.

The current acting CFO, DCAO, Mark Amoroso, doesn’t like to talk about the per capita cost to Guelph’s citizens. He says it’s irrelevant. Does he care? He lives in Hamilton.

Looking back nine years, how have your household costs affected you? Did the exploding cost of running a city overtake your income, an ability to pay your City taxes? You are not alone.

Only we the people can create change

This message was paid for by a group of Guelph citizens who care about their city. Now it’s your turn. The best way the people can influence change in the way your money is being managed, is to contact your councillor. Each member has received the Fung analysis. Demand answers from them over the excessive spending and mismanagement contained in this well-documented report. Pat Fung has provided indisputable evidence that this city is on the brink of financial disaster, compounded in the past nine years.

To help stop this recklessness, join the thousands of Guelph residents engaged in protest of the way their city is being mismanaged. Please donate to help finance the protest. Send your donation and comments to:

GrassRoots Guelph

Box 250 – 17A – 218 Silvercreek Pkwy, North,

Guelph ON N1H 8E8

Please make your cheques and money orders payable to Grassroots Guelph. Sorry, we cannot accept credit card contributions, but cash in a sealed envelope is welcome. No contribution is considered too small. All funds received will be used exclusively for creating change in the way our city is being managed.

Both GrassRoots Guelph and are non-profit organizations and manned by volunteers. Thanks for participating, welcome to the cause and join the protest today supporting common sense management.

For a copy of Pat’s full analysis, go to: or email




Filed under Between the Lines