During his public presentation, North Bay Taxpayers' Association treasurer, Don Rennick, slams city council on its management of North Bay Hydro. PHOTO BY: Jazz Mathon
The North Bay Taxpayers Association is not pleased with how city council has been operating North Bay Hydro.
During public presentations Monday night, the treasurer of the association accused council of subsidizing city operations through revenue from North Bay Hydro. Don Rennick says since 2008, North Bay Hydro has added almost 9 million to hydro delivery charges in order to subsidize city operations through dividends.
“Why would anybody operate that way? Why would they just reduce the delivery charges, don’t add that extra bit. If the city needs more money than be up front about it and tell citizens we're going to have to raise taxes,” said Rennick after the meeting.
However, what really angers him is that any profit made by North Bay Hydro is subject to taxation.
“It’s amounted to 2.6 million over the past four years and that money is gone," added Rennick.
Rennick also called the practice, financially horrendous and says it contravenes the shareholder’s agreement currently in effect at North Bay Hydro.
Some councillor took exception to Rennick’s accusations.
Mac Bain says all rate increases need to be accepted by the Ontario Energy Board and that no funds have been misappropriated.
“I will be talking with the city solicitor to clarify the dividend question as well, because it was my understanding in several meetings, when dividends were discussed, that it was all legal and we had the ability to be doing it.”
Councillor Daryl Vaillancourt stated there is no illegal activity by the Hydro Board and that Rennick does not have all the facts.
“His facts are accusatory and they’re selective and that is perhaps unfair and I wanted to ask him a few clarifying questions and it seem to upset him and that can happen once in a while.”
Councillor Mark King, who is also the President of the North Bay Taxpayers Association, said hydro users have been paying higher rates and those profits have been used to operate the city. He also wanted to be clear that he has never voted in favour of this practice.
“There is a personal involvement; there is a personal liability, as a councillor you need to be careful with what you are doing with taxpayer’s money, its important stuff.”
The Taxpayers Association also insisted the city stop subsidizing its expenditures through hydro delivery charges and added if this practice has broken any laws, it expects the 6.4 million in dividends paid to date be repaid to North Bay Hydro.
