MEDIA RELEASE FOR IMMEDIATE RELEASE January 17, 2018

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1 BRACEBRIDGE, ON On January 16, 2017, Mayor Graydon Smith, on behalf of Bracebridge Town Council, travelled to Sudbury to make a presentation to the Provincial Standing Committee on Finance and Economic Affairs. The public hearing held in Sudbury was part of the province-wide Pre-Budget Consultation process being conducted by the Committee. The Committee has been holding public hearings across the province in December and January in order to provide a forum for citizens, stakeholders, and local government partners to discuss their social, economic and program related concerns with elected provincial representatives. Typically, presentations (including both in-person and written submissions) are made by representatives from associations, community groups, organizations and unions, and interested individuals. The Committee also receives presentations from municipalities and their associations, as well as local administrative bodies and service agencies exercising delegated authority and/or receiving transfer payments. A report on the Pre-Budget Consultation will be provided to the Legislative Assembly by the Committee. The Committee s Report will provide an overview of the main issues raised by presenters during the Pre- Budget consultation. Cost estimates provided by witnesses for their proposals are also reported whenever possible. Details of submissions by witnesses and their responses to questions by Committee Members will be reported in the Hansard of the Committee s Proceedings. The Committee s recommendations are listed in the Report. Mayor Smith s presentation to the Committee is attached as Appendix A to this Media Release. I was very pleased to have an opportunity to make a presentation to the Standing Committee on behalf of residents of Bracebridge and all of Muskoka. Matters of infrastructure and healthcare are important not only to us, but to communities throughout Ontario. Our town continues to take a leadership position, advocating for better outcomes for municipalities and their citizens, said Mayor Smith. In addition to sharing his comments with the Standing Committee, a delegation from the Town of Bracebridge will be attending the upcoming conference organized by the Rural Ontario Municipal Association to meet with government officials and provincial representatives from all of the opposition parties to share the Town s issues and concerns. The Town of Bracebridge continues to pro-actively advocate to the Province on matters of local, regional and provincial concern. Infrastructure funding, health system reform and hospital services will continue to be priorities for our engagement with the Province, said Smith For more information contact: Mayor Graydon Smith ext. 242 About Bracebridge The Town of Bracebridge is located in the Heart of Muskoka, the epitome of Canada s Cottage Country. With a population in excess of 16,000 permanent residents that doubles during the summer months, the community has a diversified economy that is highlighted by strong construction, hospitality and professional sectors. Bracebridge is the steward of the cottage country brand and is teaching the world the power of living the Muskoka lifestyle in its spirit, the arts, food, home and recreation. The Town is positioned on the 45 th parallel, halfway between the Equator and the North Pole, and is recognized as Santa s summer home.

2 APPENDIX A January 16, 2017 Submission by Mayor Graydon Smith to the Standing Committee on Finance and Economic Affairs Madam Chair and members of Committee, thank you for the opportunity to meet with you today. My name is Graydon Smith and I am the Mayor of the Town of Bracebridge. In addition to my role as the Town s Mayor, I also sit as a member of the District of Muskoka Council; serve as the Vice- Chair of Ontario Small Urban Municipalities; and sit as a member of the Board of Directors of the Association of Municipalities of Ontario. I hope that my remarks today reflect a local, regional and province-wide perspective on several issues of municipal concern that require your Government s consideration when developing Ontario s next provincial budget. Infrastructure The first issue that I would like to address is sustainable funding for municipal infrastructure. Like all communities in Ontario, Bracebridge and the other municipalities in Muskoka are faced with significant demands to up-date existing, or construct new, infrastructure. Recent estimates show that the municipalities in Muskoka (both Upper-Tier and Lower-Tier) are faced with over half a billion worth of capital costs over the next 10 years. Through our long-term capital planning and asset management processes, the Town of Bracebridge has identified the need for over $89 million in capital expenditures over the next decade. Of specific concern for Bracebridge is the fact that, in addition to maintenance and replacement of core infrastructure such as roads and bridges, the Town is also faced with the pressing need to replace our current aging single-pad arena, which was built in 1949, and to expand the Town s current public library. These investments in culture and recreation facilities are required to ensure that Bracebridge remains as a strong and vibrant community, and is able to provide the services expected by residents of the Town. Ontarians place a high value on the availability of safe and modern infrastructure. Page 2.

3 A national survey conducted by the Federation of Canadian Municipalities (FCM) found that at current reinvestment levels, the quality of recreation infrastructure will continue to decline. Increasingly, municipalities are unable to keep pace with the needs of their communities for cultural and recreational infrastructure. The significant needs facing Ontario s municipalities highlight the importance of Provincial support for infrastructure projects in helping to promote community sustainability and local economic development. Additionally, the information demonstrates the need for access to Provincial programs that specifically help to fund infrastructure projects such as libraries and arenas. During other pre-budget consultation sessions, the provincial government heard from AMO regarding the findings of two lengthy reports, which highlighted the fiscal challenges municipal governments will face in the next ten years. In response to those challenges, AMO has launched a municipal proposed action plan called the Local Share. The Local Share is a proposal to raise the HST by 1%, fully dedicated to help fund critical local services and infrastructure in communities across the province. The new revenue would: fund roads, bridges, and transit among other people-focused services; help reduce the constant upward pressure on property tax bills; and diversify how communities fund infrastructure investments. Ontario s municipal leaders remain committed to implementing a solution to our systemic challenge a solution that sustainably meets local needs over time. Ontarians themselves have told AMO that they are willing to consider a bigger and bolder option like the HST proposal. As recently as November 2017, the Council of Town of Bracebridge confirmed its support for the efforts of the Association of Municipalities of Ontario to secure new sources of revenue, such as the receipt of a portion of HST revenue or other sustainable alternatives, to help fund critical municipal services like roads, bridges, transit, recreation and cultural facilities, clean water and other areas of need. For Ontarians, municipal needs are important. Ontarians live and breathe their local experience on a daily basis. They understand the challenges their communities have. They understand the challenge that property taxation offers a tax that has no relation to the ability to pay. Page 3.

4 Although one-time grant programs have a role, they are not the cornerstone of the future. The Town believes that the Provincial Government should provide new dedicated funding for infrastructure, to help address the diverse range of infrastructure needs that municipalities are facing. issues of: In addition to highlighting the need for infrastructure funding, I would also like to speak to the the provision of sustainable funding for Ontario s smaller hospitals (especially those small hospitals function on a multi-site basis); and the expanding role of municipalities in healthcare-related issues. Sustainable Funding for Ontario s Smaller Hospitals Ontario hospitals are required by law to balance their budgets on an annual basis, a requirement Muskoka Algonquin Healthcare, which operates hospital sites in Bracebridge and Huntsville, has been unable to meet since the 2014/15 fiscal year. The funding provided to MAHC under the hospital funding formula is insufficient to allow the hospital to balance the operating budget, and without additional mid-year funding provided by the Ministry of Health and Long-Term Care, the hospital would have finished each of the last three years with a deficit. MAHC did balance the annual budget when Health System Funding Reform was first introduced by making unpopular changes: MAHC has adjusted operations to reduce duplication, and they have reduced acute and complex continuing care beds. However, bed occupancy has steadily increased over the last few years to the point where additional beds are now warranted, but there is insufficient funding to keep them opened and staffed. In this, MAHC is no different than many of Ontario s public hospitals that are struggling this winter with very high occupancy. MAHC s Board reports that they have hit that wall, as many other medium sized hospitals throughout Ontario are also experiencing. MAHC understands that they need to look carefully at their operations to understand what services they can continue to provide and how those services may be reconfigured so that MAHC can live within approved funding allowances. However, it is apparent that multi-site organizations of MAHC s size are dis-advantaged by the health system s funding formula, and the changes in operations that would be required by MAHC to balance are drastic, and would lead to an erosion of healthcare services in Muskoka if implemented. Page 4.

5 MAHC is currently developing a Capital Redevelopment Plan, engaging municipal, community, and primary care representatives in designing hospital care for the future. Projections are that in the near future, MAHC will see an increasing volume of patients from the aging population that MAHC serves. Slashing services to balance current budgets goes contrary to good planning when statistical forecasts demonstrate an increasing demand for hospital services is building within the catchment area. The people of Muskoka and East Parry Sound deserve high quality accessible healthcare. Although the additional one-time funding of $815,500 announced by the NSM-LHIN on January 12, 2018 will help to support operating pressures and reduces MAHC s operating shortfall for the fiscal year 2017/2018, it does not solve continued budget challenges anticipated in future fiscal years. The Town and the other area municipalities believe that the Ministry must continue to look at options to address the budget gap. Steps must be taken to reform the funding formula to ensure that base funding provided to hospitals recognizes the diverse models for hospital operations including small, rural, and multi-site hospitals. AMO has suggested, and the Town agrees that the Provincial Government should tie annual provincial base hospital operational funding at least to previous year s rate of inflation. Expanding Role of Municipalities in Healthcare-Related Issues Based on the Town s experience over the past several years, it is clear that municipalities must be actively engaged in health care-related issues in a manner not previously required. To that end, the Town believes that it is appropriate for the Provincial Government to mandate a municipal voice into health care service planning and decision-making by the Local Health Integration Networks (LHINs). As I have noted previously, MAHC is actively involved in the preparation of a Capital Redevelopment Plan. Although work continues on the development of final recommendations to the LHIN and the Ministry of Health and Long-Term Care, it is evident that the expectation by the Hospital is that the municipalities served by MAHC will contribute a significant amount of capital funding for any new hospital facilities. Although municipalities wish to support the provision of required acute care services, the Province must recognize the limited revenues available to Ontario s municipalities, especially smaller more northern communities, to provide large contributions to hospital facilities in the face of other pressing infrastructure requirements. Page 5.

6 Accordingly, the Province is requested to provide adequate capital funding to hospitals to support the services that residents need in their communities. If the Province cannot remove the requirement for municipal funding for capital expansion, it should, at the very least, cap the community funding required for major capital projects such as new hospital builds. Our experience in Muskoka has shown that there can be efficiencies realized in hospital-related capital projects by: ensuring that the capital planning process for hospitals leverages the significant investments in local infrastructure that have taken place, based on the extensive municipal capital planning; and by making sure that land-use planning policies are respected in considering the development of new acute care facilities. new facilities. We urge the Province to ensure these efficiencies are recognized in the development of plans for Conclusion Municipal governments are important to the provincial government. Municipalities are the front line providers of many services that make communities strong and that grow the economy. The residents of Bracebridge and the other municipalities in Ontario expect their governments to work together for the common good, on pressing and emerging issues. By working together we can develop plans that help municipalities make ends meet and that help our communities succeed. Although we are small, the Town of Bracebridge is committed to assisting with this work in the future. I know I speak for my municipal colleagues when I say we are here to be strong and effective partners with the Provincial government for the betterment of Ontario. Thank you Madam Chair and members of the Committee for your time today. I greatly appreciate the opportunity to address the Committee and to highlight these areas of interest to the Town of Bracebridge and other Ontario municipalities. Graydon Smith, Mayor, Town of Bracebridge Page 6.