Baddeck's troubled financial picture expected to become clearer next month

The Village of Baddeck's new manager says the municipal unit's troubled financial picture should be clearer by next month, just over two years after its former chief administrator was fired and subsequently charged with fraud.

Roman Braun-Huettner said estimated year-end figures for 2020 and 2021 should be approved by the Nova Scotia village's elected commissioners in December. Audited financial statements for the last two years will follow.

"We are working on the audit for 2022 and the problem we had is there is quite a few accounts receivable that was never followed up with, so we have to follow up and figure out a number that's not actually receivable for us anymore," said Braun-Huettner, who was hired permanently about seven months ago.

"So that's what we're working on and that takes a lot of time to follow up on these accounts and collect the money."

Officials have said the former administrator, Megan Cooper, left the books in a mess, with unpaid bills and uncollected taxes.

Her three-day trial on a single count of fraud over $5,000 is scheduled to start Dec. 11. According to court documents, the charge involves $28,500.

After she was fired, the provincial minister of municipal affairs issued two orders for the village to clean up its financials. But it did not renew the order earlier this year when it became clear that it was impossible to provide audited financial statements for the fiscal years ending in 2020 and 2021.

Taxes, sewer rates hiked

To correct the outstanding financials and increase revenues for the aging sewer and water systems, the village commission raised residential taxes by 24 per cent this year and commercial taxes by 20 per cent.

Sewer rates nearly doubled and the village has called for large water-rate hikes, which are being considered by the Utility and Review Board at a hearing on Dec. 14 at 1 p.m. in the Victoria County courthouse in Baddeck.

Braun-Huettner said the village is proposing to bump water rates up nearly 59 per cent, from 77 cents per cubic metre to $1.22. Fire protection rates are also slated for an increase.

Most water users have had new meters installed by the village to try to get a better handle on the utility, which is recording water loss of up to 40 per cent.

Braun-Huettner said the loss is probably not that high, but the old meters were slow to record actual usage, so new meters were needed.

"One part is we're losing water and it's easier for us with the new water meters to track down where the leaks are. But we also have more accurate data on the water consumption, because that's not matching how much water is actually used and how much water is metered," he said.

Showing progress

This year's financials are showing progress, Braun-Huettner said.

"So far so good. At the moment, it looks like we are breaking even."

However, there's still another five months left in the fiscal year and the village regularly has to pay for surprise infrastructure repairs that can't wait.

"We have an approved budget which still shows a minus, because there's a lot of investments the village has to take on water and sewer to be sustainable," Braun-Huettner said.

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