Recent revelations would indicate that the W.U.C. has been mismanaged, at the highest level since August 2003.  This mismanagement can be shared by the Mayor and City Council, the W.U.C.’s Board of Directors, and senior Management continuing unabated since August 2007.

In 2007 a “Water Rate” increase of 88.08% was decreed by City Council to tackle crumbling infrastructure.  Even with that increase the W.U.C. has been unable to meet its stated requirements.  Today, three years later the same scenario is being played out and again doomed to utter failure without some drastic rethinking.

Today the W.U.C. is faced with FOUR seemingly insurmountable problems.  The FIRST and foremost is the direct and indirect involvement in a “Business Enterprise” by elected officials.  The SECOND and equally important feature is the direct involvement of Enwin Utilities Ltd., a fore-profit corporation controlled by elected officials, where costs are allowed to skyrocket unchecked regardless of circumstances.  The THIRD is the composition of the Board of Directors and their apparent subservience to political agendas rather than the consumer.  The FOURTH and equally important is the apparent inability of senior management to think outside of the box.

In the FIRST instance, elected officials saw fit to hold rates stagnant for seven consecutive years even in the face of an annual average cost increase of 2.0%.  It has been learned that this same position is being pushed today by The Mayor under the phrase of “not this year.”  This political stance is tantamount to an ostrich burying its head in the sand.

In the SECOND instance, documentation would tend to indicate that the W.U.C., an entity owned by the City of Windsor, is being overcharged for “Administrative Services” provided by Enwin Utilities Ltd., a for-profit entity solely owned by the City of Windsor.  Since 2004, Enwin Utilities Ltd. has paid $11 Million in dividends, another $4 Million scheduled for 2010, decreed by a Board of Directors controlled by elected officials.  With almost all Enwin revenues derived from either Hydro or Water producing entities, this gives rise to a clear case of backdoor municipal taxation.

The THIRD instance again speaks to political interference in a purely business operation.  With a Board of Directors answerable to elected officials and not the client/consumer, this gives rise to expediency rather than professional management of a life sustaining commodity.  We all have seen and felt the effects of mismanagement in the auto sector well the things every man, woman, and child require to maintain life are headed in the same direction unless drastic action is taken.

As for the FOURTH instance, senior management of the W.U.C. must be held accountable for their actions and/or inactions.  The almost total reliance on arms length professional consultants must be tempered with common sense.  To date the purported position of senior management is we must follow, to the letter, the guidelines of a third party regardless of the impact on society.  It is this posture that has placed the W.U.C. in a severe economic bind, which by the way will not be rectified by the current proposed rate increase of 30% over three years without some very drastic changes.  Today it is 30%, what about 2013, are we headed for another 30% over three years?

It is not whether the W.U.C. needs a “Water Rate” increase it is a pure and simple question of how much of an increase can the client/consumer sustain?  Today the W.U.C. management is pushing for a 10% increase every year for three years, better known as Option A.  This will see the “Water Consumption Rate” increase from $0.266 to $0.371 per cubic meter in the first year resulting in an average bill for 22 cubic meters going from $32.90 to $36.25.

By the end of the three year period it will rise to $0.612 per cubic meter resulting in an average bill for 22 cubic meters being $43.94  This type of increase is unlikely is unlikely to stop in 2012 but be continued until at least 2015.  In essence by 2015 the “Water Consumption Rate,” unless more political fiddling takes place in the interim, will rise to $1.068 per cubic meter resulting in an average bill for 22 cubic meters of $58.49

Had there not been blatant political interference over the past seven years, the “Water Consumption Rate,” based solely on incremental increases related to the cost of living, would be approximately $0.312 per cubic meter or $34.47 for an average 22 cubic meters.  The one thing that hasn’t been discussed in the streamlining of administration and support services which appear to be skyrocketing out of control.

Under current economic circumstances, which are forecasted to last another three to five years, a 10% annual increase in each of the next three or six years is absurd and borders on insanity.  Taking into account that infrastructure needs must be addressed, an increase of 5.0% annually, beginning with a figure of $0.310 or $0.320 per cubic meter in 2010, must be considered along with a drastic reduction in administrative and support services costs otherwise the whole exercise is doomed once again.

Today we are faced with the real threat of a “WATER” Rate increase.  This is only three years after a massive 88% increase that was to satisfy a “Consultant’s Report” indicating $430 million had to be spent on “Aging Infrastructure” over 30 years.

Thus late in 2007 the average “WATER BILL” increased by $15.41 from $17.49 to $32.90 per month.  At that time it was said the increase was needed to solve the problem with “Aging Infrastructure” requiring the $15 Million annually.

A year had not passed before the W.U.C. indicated the $430 Million figure had risen to $750 Million.  Suddenly the “Aging Infrastructure” skyrocketed from $15 Million to $25 Million annually.

Today, we are again being told a “Rate Increase” is not only needed for “Aging Infrastructure” but also to reduce “Bank Debt” incurred by spending more than received.  This current situation the W.U.C. finds itself in gives rise to some pertinent questions.

First, why must a 30 year time frame for the replacement of “Aging Infrastructure” be mandatory?  Why not 40 years or even 50 years?  Someone, in their political wisdom, decided many years ago to ignore the severity of the situation.  A 50 year time frame would require no increased funding for “Aging Infrastructure.”

Second, this proposal as it pertains to the “Aging Infrastructure” is only a temporary fix.  The “Proposed Rate” increase is designed to generate $19.6 Million annually until 2012.  Does this mean that in 2013 the W.U.C. will be demanding further huge increased “Rate?”  Now there is the other little thorn, the W.U.C. indebtedness to the Bank.  It would appear that paying down a portion of the bank debt has taken priority over “Aging Infrastructure.”  This is a prime example of “Robbing Peter to Pay Paul.”

The W.U.C. has been spending more money over the past several years than it has been collecting.  We are now told that without this average 10% “WATER BILL” increase the W.U.C. will have a Bank debt of $5.5 Million by the end of 2010.

We are being told that the proposed increase will only be 10% raising the average “WATER BILL” from the present $32.90 to $36.45 per month.  Is such a double digit increase on a basic utility justified under the current economic conditions?

To date there has been no mention of “Consumption” going down but just a demand for an increase of rates despite the 88% increase inflicted on the general public in 2007.  In addition, one would expect with a reduced demand for treated water the cost of administration should have been reduced accordingly.  In this context, we are told that general and administrative charges have been held to extremely modest increases.  This begs the question, why any increases at all?

I agree, because of past and current “Political” interference, the W.U.C. does need an increase in “Rates,” but not of this magnitude.  The politicians and the bureaucrats have to apply basic business principals.  Any monthly and/or annual increase must be equally shared between revenue and expenses.  The days of double digit increases went with the Enron’s, WorldCom’s, General Motors Corporation and Chrysler Corporation.

A troublesome question concerns the involvement of Enwin Utilities Ltd. in the business of the W.U.C.

Over the past six (6) years, 2004 to 2009, Enwin Utilities Ltd. has transferred the sum of $11 million dollars to the general fund of The City of Windsor.  If this total amount has not come from the W.U.C. then the citizens of Windsor have been over-charged for the price of “HYDRO.”  I have no doubt that, regardless, it has come from the stressed out citizen’s pocket in lieu of direct municipal taxation.

It is time for the citizens of Windsor to start asking some pointed questions of the W.U.C. Board and their elected representatives.  Where is the upfront communication? Where is transparency?  Where is discussion? Where is open and honest government?  Where is the two-way street?

The previous report on the status of the Windsor Detroit Tunnel Corporation (alias WDTC) raises important questions, questions that give rise to an apparent misuse of our tax dollars.  The following should enable you to call your Ward Councilors and demand a full explanation.  What could be a better way to employ ones valuable and precious time and energy?

Remember 2007 is the magical year the “Backroom (In-Camera) Boys” began hatching their plans shrouded in complete secrecy.  First was the manner in which the Corporation’s (WDTC) was formed.  The second, discussed here, is an apparent derailing of the Corporation’s (WDTC) stated purpose.

At a recent meeting of the City of Windsor’s Tunnel Commission, our elected officials refuse to discuss, in an open, frank, and truthful manner, any details of the new corporation in particular a questionable monetary matter involving a $75M payout.  Why you may ask?  Well, if you were playing with tax dollars would you want to be open, forthright, and truthful when confronted?  All this time, even to this date March 2009, the black cloud of secrecy has been growing ever thicker.

From the time the Corporation was publically mentioned until March 2008, secret meetings were being held on both sides of the Detroit River.  Meetings that would see Canadian tax dollars flowing to the City of Detroit amounting to 75M Dollars presumably in U.S. currency.  For what, you may ask?  Well the answer is for a franchise with a time limit.

The franchise would be the right to operate the City of Detroit’s half of the tunnel for a specified time period.  Councilors, when questioned about this, feigned ignorance.  As you read on remember, the corporation at the center of this is known as Windsor Detroit Tunnel Corporation (WDTC) which was and still is a totally ineffectual entity.

March 2008 saw City Council approve a motion that the Canadian firm of Sutts, Strosberg LLP forthwith form a Michigan based company wholly owned by Windsor Detroit Tunnel Corporation (WDTC).  Outside of the initial incorporation of the WDTC approved by City Council, this matter has not seen the light of day.  With everything funded solely by Windsor taxpayers, are not those hard-pressed taxpayers entitled to know not only the purpose but the incurred financial cost for the Michigan entity?  In addition to this there exists a major stumbling block that must be overcome.

The City of Detroit’s portion of the International Windsor-Detroit tunnel complex has been contracted out until 2020 to a management company called American Roads that operates locally under the name of Detroit Windsor Tunnel Corporation located in the City of Detroit.  How was this matter to be overcome, by added Canadian tax dollars?

With respect to the $75M, this matter is definitely mired in a thick, extremely black cloud of mystery.  The mystery is even deeper for it has been learned recently City Council has been kept fully appraised of the on-going cross-border negotiations.  This is absolutely amazing as to this day Councilors continue to feign ignorance.  This begs the question, why?  Who are our elected officials answerable too, themselves or the electorate?

What has been learned to date with respect to the $75M offer to the City of Detroit is as follows;

a.       The City of Windsor was willing and able to pay the City of Detroit 75M Dollars.

b.      The Windsor Detroit Tunnel Corporation (not the City of Windsor) applied to Infrastructure Ontario for a loan in the amount of $75M – was it for U.S. or Canadian Dollars is anyone’s guess at this time.

c.       Infrastructure Ontario by e-mail dated Thursday, May 15, 2008 @ 4:06 PM advised the “City of Windsor” that they could not accept the loan request as presented.

The current Board Members of the City of Windsor’s Tunnel Commission, which include the Mayor, three Councilors and several others, categorically refuse to discuss this matter.  I can appreciate their reluctance for the ante has been raised to $100M U.S. by the City of Detroit.  Would anyone want to discuss their foolhardy move of using tax dollars on some hair-brained scheme without taxpayer knowledge?

For me, if the City of Windsor has $75M or $100M to squander on a secret hair-brained scheme why are our roads such a disgrace?  Why are the W.U.C. water, water main replacement, and the City’s sewer surcharge rates so high while continuing to move higher?  Why do we need ANY tax increase?

Does anyone believe that our current City Council has any decency, transparency, honesty, or civility?  It is time to demand open, transparent, honest and truthful governance?  In a democracy, this is known as “government by the people and for the people.”  Anything less cannot be classified as democratic.

There is a thick, black cloud of mystery surrounding the City’s half of the Windsor-Detroit tunnel, its purpose and operations.  A mystery that directly impacts the taxpayers of Windsor.

In 2007, the current City Council endorsed the formation of a corporation, to be known as the Windsor Detroit Tunnel Corporation, to replace the City of Windsor’s Tunnel Commission.  The reason given was to insulate the City of Windsor and by extension its taxpayers from any litigation that may arise through the operation of the Canadian half of the Windsor Detroit Tunnel.  This is what was sold to the citizens of Windsor but was it the actual TRUTH?  For close to a year this matter appeared to be in limbo.

March 2008 suddenly saw the matter appear in the local press under the banner of “Cover Your Assets.”  During the latter part of this month two things appeared to happen;

a.       Behind closed doors (In-Camera), the corporation Windsor Detroit Tunnel Corporation was born with a Board of Directors formed comprising one elected official and four members of City Hall.

b.      In a public session of Council, it was decided/agreed to transfer the assets of the Tunnel Commission, $111.5M subject to KPMG final audit, to the newly formed corporation.  This matter was to be undertaken not by the City’s legal department but by an appointed outside legal firm.

These two apparently basic maneuvers seem to be straight forward but are they?

a.       What is the current status of this newly formed Corporation and at what cost was this Corporation formed?  Has any remuneration (taxpayer dollars) been received by the Board of Directors or any others?  This becomes a mute point as the Canadian half of the Windsor Detroit tunnel is still being operated by the City of Windsor’s Tunnel Commission.

b.      In connection with the transfer of Tunnel assets, some Councilors said it would only be a paper transfer but conveniently failed to mention that it would remove those assets from taxpayer control.  The following information has recently emerged;

a.       An outside legal firm has, so far been paid, the sum of $49,223.49 for the transfer of City of Windsor Tunnel Commission assets to the newly formed, independent corporation known as the Windsor Detroit Tunnel Corporation.  An entity over which Windsor Taxpayers have little or no control.

b.      As of March 2009, it has been learned that the City of Windsor Tunnel Commission assets have remained under the direct control of the Commission.

For roughly a year this matter has been incurring costs that are at best sketchy thanks to the continuing secrecy of both the Commission and City Council.  With a taxpayer asset valued somewhere between $149M and $111.5M combined with Fort Knox silence from our elected officials, it begs the question, what is wrong with you Windsor?  Is not the loss of a valuable City/Taxpayer asset, worthy of your demand for accountability, transparency, and most of all complete TRUTH on the matter?

About three weeks ago, the W.U.C. felt out the citizens about a “Water Rate” increase.  Well, their bombshell exploded in their collective faces.  This folks was the frontal attack.  In less than a month, “Big Brother” is once again trying to resurrect the matter through the “Back-Door.”

Today’s Windsor Star article should have everyone jumping for joy.  Finally, it would appear that sanity is beginning to prevail.  With this City’s track record, one must be very careful and make sure they understand everything.  Having said this, this article is full of surprises.  We are told;

a.       The “Sewer Surcharge” brings in $52.5M.  Wonderful, but is the Sewer portion, approximately $42.0M if the truth were told, being used to replace aging “Sewers?  In 2007, the infamous year, we were told that a ‘Consultant’ advised that some $430M was needed to replace aging City “Water and Sewer” mains.  Does anyone see a tiny relationship here?  Better still, does anyone believe for a moment that the City would ever accept less than $52.5M?

b.       Now we are told that the “Sewer Surcharge” is “Fixed” and represents only 78% of one’s monthly bill.  Well, all we have to do is use a hand-held calculator and easily refute this statement.  Maybe it is time for our “White Knights” to come clean with their figures.  To further add insult to injury, it is suggested to reduce the 78% figure to a beautiful 70% which you have already established is higher than today’s percentage.  Does this not make one begin thinking?

c.        We are also told that the remaining “Variable” is based on “Water Usage.”  What our “White Knights” are not saying is that this so-called “Variable” is directly controlled by the W.U.C.  In addition, what they are failing to declare is that this “Variable” is composed of “Fixed” charges that are in excess of 75% of one’s water bill.  Where is the honesty, forget transparency, in all of this?

I will let all who read this make up their own mind based and remember this is for the ‘Winter’ period on the following billings.

Consumption in Cubic Meters =        7                 11                 15                 19        ZERO

Billing in dollars

Meter Fixed Charge                              16.84           16.84           16.84           16.84       16.84

Water Usage (Controllable)               1.86             2.93             3.99             5.05

Water Main Replacement                      8.42             8.89             9.37             9.85         7.58

Total water charges =                  $27.12         $28.66       $30.20        $31.75     $24.42

Windsor’s Sewer Surcharge               40.68           42.99           45.31           47.62       36.63

City waste water charge =         $40.68         $42.99       $45.31         $47.62     $36.63

Grand total for water =              $67.80         $71.65         $75.51         $79.37     $61.05

Like I just mentioned this is for the “WINTER” period.  The “SUMMER” period will become crucifixion for those that want something other than their grass to turn into dust and homes to be void of flowers and home grown vegetables.

 Saturday’s, March 14^th, 2009, Windsor Star page five was devoted entirely to Windsor airport.  The contents of the three articles makes one wonder whether this was City paid propaganda or a Windsor Star’s attempt at just an informational junket.

One article, “Runway Dream,” appeared to be nothing more than a “Soap Box” for Windsor’s Mayor to expound on another of his Pie-In-The-Sky ventures.  The Mayor, in true fashion, would leave one to believe that Windsor is an end all, be all entity.  He makes reference to a consulting organization that will advise him on his “Dreams” feasibility.  What he has failed to say is that this same organization has been working for a year on this matter.

The Mayor has said nothing about the feasibility study conducted in 2008.  A study, by the currently employed consultant, that supported the Mayor’s grandiose “Dream.”  It was this report that prompted all the fanfare and whirlwind junket to Europe.  One should be asking, why Europe?  Is there not just as knowledgeable organizations in North America?

No doubt Windsor’s Mayor will, in true Windsor fashion, be able to double talk his way out of these questions.  But the question of why Europe and not North America will still remain.  The two environments are completely different, one is vast and the other compressed for starters.  Another big difference existing is  something called a European Union where National Borders have all but disappeared, not so in North America even with its supposed “Free Trade” feature.  Another difference concerns population.  Frankfurt has a greater population base of two million while Windsor has a whopping quarter of a million at best.

With all this being said one big question still remains.  Does anyone believe that an impartial report will be issued?  To date, consultants employed by this City appear to have issued reports that our elected officials wanted to hear.

Another article headed “Airport Called a ‘Diamond in the Rough’ extolls the accomplishments of new management over 20 months resulting in a declared profit.  We have been told that this was accomplished where a previously employed professional lost an average of $480K annually over a time span of nine years.  This loss was so completely unacceptable in the private sector that the company up and left.  This loss factor was well know when the Federal Government dumped the airport on the City for the big sum of $1.00  The article does mention that YQG has been funded to the tune of $1.2M with Windsor taxpayer dollars.  How can all of this be ignored?  Does this smack of a profitable business?

Another fact that has been missed, conveniently or by design, is that YQG’s manager is paid from City coffers with taxpayer dollars.  It also fails to mention that Windsor taxpayer dollars are funneled into YQG at the rate of $28K monthly.  This being the case and something unavailable to a private corporation, how can one say that YQG is profitable?  What this could well impart to the citizens is that two sets of accounting books may exist.  I wonder if this could pass a legitimacy test.

The third article concerns “Board Boasts a Diverse Group.”  Yes, the YQG’s Board does consist of a diverse group.  The group consists of politicians, ex-civil servants, and best of all one who is directly involved in Frankfurt’ airport.  The only thing that appears to be missing is private sector business experience that would keep the “Diamond in the Rough Dreamers” in check and preserve taxpayer dollars for what they were intended for, basic municipal infrastructure.

Taxpayers should be very leery of this operation for there could well be a $150M taxpayer dollars on the line, and for what?  Does anyone think for one minute that Windsor can compete with Detroit’s two established airports?

September 18^th, 2008 Enwin submitted a rate request to the Ontario Energy Board (O.E.B.) and was entered as request #EB-2008-027.  This rate adjustment was for an increase in the Fixed Rate and the Delivery Rate.

Currently Enwin’s Hydro Fixed Rate is $8.68 per billing.  Enwin sought an increase of 55.3% resulting in a rate of $13.45 per billing.  A tentative O.E.B ruling has authorized this charge be reduced to $11.70 with the proviso that no additional increase be requested before 2012.  This effectively will increase an uncontrollable fixed cost by 34.79%.  This will increase everyone’s monthly hydro bill by $3.02 or $36.24 annually.

In addition Enwin’s Delivery Rate is $0.0211 per kWh.  Enwin sought a rate adjustment to $0.0189 per kWh or a decrease in a controllable cost of -10.43%.  Based on a monthly average, unadjusted consumption of 1,000 kWh per month the controllable savings would be $2.20

I believe that it is prudent to point out that a consumer’s uncontrollable rate has been increased by 34.79%.  The consumer’s controllable rate has been reduced by 10.43%.  Does this not impart the fact that Enwin does not wish to reward those consumers who try and conserve energy consumption?

Enwin has succeed in enhancing their bottom line by 3.09% thanks to a Fixed Charge increase.  The only good feature is that they were not granted their requested 8.7%.  The bad news is that there is no incentive for Enwin to control costs and become efficient.

Enwin will endeavour to hide this fact by telling all its residential customers the increase in a consumer’s bill will be only 1.82%.  This 1.82% increase will only hold true provided that Hydro One and its distribution agent do not increase their rates.

Remember, it is Enwin we all deal with locally.  It is Enwin who is seeking an increase.  Does anyone believe that Enwin is entitled to a 3.09% increase?

We have been advised that the Operating Budget deliberations have concluded.  The result has been the initial tax increase of 0.63% has been increased to 1.90% at the hands of our elected officials.  We are also told that the same group of 10 will be sitting down in several weeks to tackle the Capital Budget.  God only knows what Windsor’s 10 thinkers will come up with then, additional tax increase or more cart paths?

To date what we have been told is that a home valued at $150,000 in 2008 paid $2,612 in taxes which included the Provincial Education Tax Levy.  This same house in 2009 will pay $2,662 in 2009.  Sounds great until one takes in to account the new property evaluations determined by MPAC.  MPAC’s property reassessment of Windsor property evaluations has resulted in the tax base being reduced by 5.60% relative to 2008.  You may be asking, so what does this mean to me?  Well it will mean something if your current property evaluation is less or greater than that in 2008.

To get the true facts one must take into consideration three components of the tax bill, property evaluation, municipal mill rate, and the educational mill rate.  Of these three components, the only component the City has control over is the municipal mill rate which in 2008 was $0.01477741 for residential properties.  The Educational portion was $0.00264.

To better illustrate this matter and demonstrate that every taxpayer will experience a significant tax increase in 2009, lets take the following scenario;

a.    2008 home valued at $150,000

b.    Total of all taxes paid was $2,613 arrived at using a Mill Rate of $0.01742 ($0.01477741 + $0.0064) to sustain a municipal budget of $314M. plus an Education Levy of $96M

c.    2009 home evaluation now $142,000 or a decrease of 5.4%

d.    We are told that this house must now pay $2,662 in 2009 to sustain a municipal budget of $317M plus an Education Levy of $89M

e.    To accomplish this, the total mill rate must be increased to $0.0187464 or an increase of 7.6%.  Does this sound like an increase of less than 1.0%

Maybe it is time to confront our 10 thinkers and get some straight answers to questions that appear to be the product of some very loose and easy foot work.

p.s. 

We have been told that the City has been requested by the Province to collect approximately $89 M or $7 M less than in 2008.  MPAC has stated that the Windsor tax base has been reduced by 5.6% for 2009 over 2008.  The City’s 2008 Municipal Levy was $314M and was proposed to be increased to $317M.  The only area the Group of 10 can manipulate is the municipal levy.

By a March 2nd, 2009 decision of Windsor’s City Council, the Water Rate increase of 5% was withdrawn. A proposed increase in the “Water Usage” rate, an increase to be used for other purposes.

As stated by the W.U.C. Board’s Chairman/Ward 4 Representative K. Lewenza, Jr., an increase needed to replace aging water mains. The question this raises is why the “Water Usage” rate when there is a specific billing called “Water Main Replacement Levy.”

With the “Water Usage” rate being unchanged since January 1st, 2002, could this be for political purposes rather than practicality or transparency? Yes water consumption is a control avenue, the only one I may add, open to the user but its significance in the overall picture is minuscule. This raises the question; why increase “Water Usage” when the funds are needed for aging “Water Main Replacement?” Could it be because the “Water Main Replacement” Levy (Tax) was increased by 345% approximately two years ago, August 1st, 2007?

Two years ago taxpayers learned consultants, years earlier, had estimated that $300M would be needed to replace Windsor’s aging water mains. At the time and during the “White-Wash” audit, a new consultant surfaced wherein it was stated that the figure had skyrocketed to $430M. Well, in less than two years it seems that the figure has almost doubled.

On March 5th, 2009, we were indirectly, not directly, told by the W.U.C.’s Mr. John Wladarski, GM, that this figure was now $750M. I don’t know if you are confused but for three figures being floated, over a period of some six or seven years, sure is mind-boggling? Does it not make one wonder who is right and where all these figures are coming from?

Is it not time for the citizens of Windsor to start asking some pointed questions of their elected representatives? Where is communication? Where is transparency? Where is discussion? Where is open and honest government?