Annual audit pegs Town’s long term debt at over $75 million

New Tecumseth Free Press July 8, 2013
The 2012 audited financial statements for New Tecumseth shows $4.1 million owing in future benefits to municipal employees, an increase of $1.7 million including “another WSIB claim for a fire fighter under the presumption legislation.”

Because New Tecumseth self-insures its WSIB coverage – deductable is $500,000 – such claims are funded through taxation. In this case, one of its part-time fire fighters is receiving WSIB compensation due to a cancer/illness contracted as a result of the job. No details are provided. Presumptive legislation received Royal Assent on May 4, 2007.
2012 Audited Consolidated Financial Statements, the Independent Auditors’ (Grant Thornton) Report -Communication of Audit Results and the Financial Information Return, including Municipal Performance Measurement Program report, is included on tonight’s council agenda.
It did uncover a “significant” deficiency which show ” For part of the year the Treasurer and Deputy Treasurer had full access to the MAS software and could approve bank transfers. The Treasurer also has access to the Town’s blank cheques and signature stamps,” according to the report. ” Staff Response: Staff acknowledges that the positions listed in the above finding have access and control over several key financial related areas of interest. As of July 2012 access to the MAS software was reduced for these positions so that these staff can no longer set up new vendors or alter existing vendor information.”
Other highlights of the audit showed total salaries and benefits at Dec. 31, 2012 was $17.7 million. The Town owned $18.8 million in land assets  and $19.7 million in buildings, and $178.9 million worth of infrastructure.
Long term debt was $55.8 million in principal, and $23.1 million in interest owing on it – to be financed from development charges (67 per cent), future taxation revenues (32 per cent) and utility user rates ( one per cent).
At the current debt ratio, New Tecumseth has the borrowing capacity to for the following amounts and terms:
– $19,836,000 for a 10 year period at 2.64 per cent, or
– $32,924,000 for a 20 year period at 3.34  per cent, or
– $41,129,000 for a 30 year period at 3.66 per cent, or
– a combination of above.

Town on the hook for $1.2 million firefighter’s WSIB claim
NTFPO July 9, 2013
Questions related to New Tecumseth’s 2012 financial audit statement flushed out last night previously unreported news that taxpayers could be on the hook for paying a potential $1.2 million Worker Safety Insurance Board (WSIB – formerly Worker’s Compensation) claim under the province’s presumptive legislation to a part-time firefighter.
There are no details as to identity, or what the illness, and how long the claim has been pending, but asked about a $1.7 million looming liability on the books, Human Resources Director Hilary McCormack told council that it’s WSIB related.
New Tecumseth opted out of the WSIB coverage as it relates to firefighters more than 10 years ago, and chose instead to self-insure. A policy with a $500,000 deductible was added to protect against catostropic claims. In 2007, the provincial government added part-time and volunteer firefighters to the legislation that pays out insurance for major illnesses like cancer linked to their positions. This is the third claim lodged under the presumptive legislation since then.
In this instance, Ms. McCormack, said “We have one particular claim that has reached the deductible limit for insurance, and the insurance company at this point has denied payment of the claim. We are working with lawyers to work with the insurance company and perhaps hopefully come to an agreement with them.”
Reportedly, members of council were not aware the claim had been rejected.
“The town is not suing the insurance company,” Kim Wingrove, communications director told Free Press Online this morning. “We have had our lawyers send a letter requesting reconsideration of our level of coverage in this case. The value of this claim, which would only be reached after many years, could be $1.2M.”